Finance Act, 1983

Return of property.

20.—(1) (a) In this section—

“asset” includes any interest in an asset;

“limited interest” means—

(i) an interest (other than a leasehold interest) for the duration of a life or lives or for a period certain; or

(ii) any other interest which is not an absolute interest;

“minor child” means a child who has not attained the age of 21 years on the specified date and who has not married on or before that date;

“prescribed” means prescribed by the Revenue Commissioners;

“property” includes interests and rights of any description, and, without prejudice to the generality of the foregoing, includes—

(i) in the case of a limited interest, the property in which the limited interest subsists or on which it is charged or secured or on which there exists a right to have it charged or secured,

(ii) an interest in expectancy,

(iii) an interest or share in a partnership, joint tenancy or estate of a deceased person,

(iv) stock or shares in a company which is in course of liquidation,

(v) an annuity, and

(vi) property comprised in a settlement which the person concerned is empowered to revoke;

“settlement” has the meaning assigned to it by section 447 of the Income Tax Act, 1967 ;

“specified date”, in relation to a notice under subsection (2), means the date specified in the notice;

“tax” means income tax.

(b) For the purposes of this section the cost of acquisition to a person of an asset shall include—

(i) the amount or value of the consideration, in money or money's worth, given by him or on his behalf for the acquisition of the asset, together with the incidental costs to him of the acquisition or, if the asset was not acquired by him, any expenditure incurred by him in providing the asset, and

(ii) the amount of any expenditure incurred on the asset by him or on his behalf for the purpose of enhancing the value of the asset, being expenditure reflected in the state or nature of the asset at the specified date and any expenditure incurred by him in establishing, preserving or defending his title to, or to a right over, the asset.

(2) Where, for the purposes of tax, a person delivers to an inspector a return of income and the inspector is not satisfied with that return of income, the inspector may require—

(a) that person, by notice in writing given to him, and

(b) where that person and his spouse are, for the year of assessment to which the return of income relates, treated as living together for the purpose of section 192 of the Income Tax Act, 1967 , his spouse, by notice in writing given to the spouse,

to deliver to the inspector, within the period specified in the notice or within such further period as the inspector may allow, a return in the prescribed form of property which on the date specified in the notice is relevant property in relation to that notice and that person or his spouse shall, if required by further notice or notices in writing by the inspector, deliver to the inspector within such time, not being less than 30 days, as may be specified in such further notice or notices, a statement verifying such return of property together with such evidence, statement or documents required by the inspector in respect of such property or in respect of any property which the inspector has reason to believe to form part of the relevant property.

(3) (a) Relevant property in relation to a notice under subsection (2) means where the person to whom the notice is given—

(i) is an individual and the return of income concerned relates to income in respect of which he is chargeable to tax otherwise than in a representative capacity or as a trustee, all the property to which that individual is beneficially entitled on the specified date,

(ii) is the spouse of an individual by whom the return of income concerned was delivered, all the property to which the said spouse is beneficially entitled on the specified date,

(iii) is a person chargeable to tax in a representative capacity and the return of income concerned relates to income of a person in respect of which he is so chargeable, all the property to which that last-mentioned person is beneficially entitled and which gives rise to income in respect of which the first-mentioned person is chargeable to tax in a representative capacity or is property in relation to which the first-mentioned person performs functions or duties in such a capacity on the specified date, and

(iv) is a person chargeable as a trustee of a trust and the return of income concerned relates to income of the trust, all the property comprised in the trust on the specified date.

(b) Property to which a minor child of an individual referred to in subparagraph (i) or (ii) of paragraph (a) is beneficially entitled shall be included in that individual's return under this section where—

(i) the said property at any time prior to its acquisition by the minor child was disposed of by that individual whether to the minor child or not, or

(ii) the consideration for the acquisition of the said property by the minor child was provided directly or indirectly by that individual.

(4) (a) A return under this section shall contain particulars of the relevant property, including in relation to each asset comprised therein—

(i) a full description,

(ii) its location on the specified date,

(iii) the cost of acquisition to the person beneficially entitled thereto,

(iv) the date of acquisition, and

(v) if it was acquired otherwise than through a bargain at arm's length, the name and address of the person from whom it was acquired and the consideration, if any, given to that person in respect of the acquisition.

(b) A return under this section shall, in the case of an interest which is not an absolute interest, contain particulars of the title under which the beneficial entitlement arises.

(c) A return under this section shall be signed by the person by whom it is to be delivered and shall include a declaration by that person that it is, to the best of his knowledge, information and belief, correct and complete.

(d) The Revenue Commissioners may require the declaration mentioned in paragraph (c) to be made on oath.

(5) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column 2 thereof of “Finance Act, 1983, section 20 ”.