Finance Act, 1989

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Surcharge for undervaluation of property.

79.—(1) Where—

(a) an accountable person delivers a return, and

(b) the estimate of the market value of any asset comprised in a gift or inheritance and included in that return, when expressed as a percentage of the ascertained value of that asset, is within any of the percentages specified in column (1) of the Table to this section,

then the amount of tax attributable to the property which is that asset shall be increased by a sum (hereafter in this section referred to as the “surcharge”) equal to the corresponding percentage, set out in column (2) of that Table opposite the relevant percentages in the said column (1), of that amount of tax.

(2) Interest shall be payable under the provisions of section 41 of the Principal Act upon any surcharge as if the surcharge were tax, and the surcharge and any interest thereon shall be chargeable and recoverable as if the surcharge and that interest were part of the tax.

(3) Any person aggrieved by the imposition on him of a surcharge under this section in respect of any asset may, within 30 days of the notification to him of the amount of such surcharge, appeal to the Appeal Commissioners against the imposition of such surcharge on the grounds, and only on the grounds, that, having regard to all the circumstances, there were sufficient grounds on which he might reasonably have based his estimate of the market value of the asset.

(4) The Appeal Commissioners shall hear and determine an appeal to them under subsection (3) as if it were an appeal to them against an assessment to tax, and the provisions of section 52 of the Principal Act relating to an appeal or to the rehearing of an appeal or to the statement of a case for the opinion of the High Court on a point of law shall, with any necessary modifications, apply accordingly.

(5) In this section “ascertained value” means the market value subject to the right of appeal under section 51 or section 52 of the Principal Act.

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