Capital Acquisitions Tax Act, 1976

PART VII

Payment and Recovery of Tax

Payment of tax and interest on tax.

41.—(1) Tax shall be due and payable on the valuation date.

(2) Simple interest at the rate of one and one-half per cent. per month or part of a month, without deduction of income tax, shall be payable upon the tax from the valuation date to the date of payment of the tax and shall be chargeable and recoverable in the same manner as if it were part of the tax.

(3) Notwithstanding the provisions of subsection (2), interest shall not be payable on tax which is paid within three months of the valuation date, and where tax and interest, if any, thereon is paid within thirty days of the date of assessment thereof, interest shall not run on that tax for the period of thirty days from the date of the assessment or any part of that period.

(4) A payment on account of tax shall be applied—

(a) if there is interest due on tax at the date of the payment, to the discharge, so far as may be, of the interest so due; and

(b) if there is any balance of that payment remaining, to the discharge of so much tax as is equal to that balance.

(5) Subject to the provisions of subsections (2), (3) and (4), payments on account may be made at any time, and when a payment on account is made, interest shall not be chargeable in respect of any period subsequent to the date of such payment on so much of the payment on account as is to be applied in discharge of the tax.

(6) In the case of a gift which becomes an inheritance by reason of its being taken under a disposition where the date of the disposition is within two years prior to the death of the disponer, the provisions of this section shall have effect as if the references to the valuation date in subsections (1), (2) and (3) were references to the date of death of the disponer.

(7) In the case of a gift or inheritance taken prior to the date of the passing of this Act, the provisions of this section shall have effect as if the references to the valuation date in subsections (1), (2) and (3) were references to the date of the passing of this Act, or to the valuation date, whichever is the later.

(8) Where the value of a limited interest falls to be ascertained in accordance with rule 8 of the First Schedule as if it were a series of absolute interests, this section shall have effect, in relation to each of those absolute interests, as if the references to the valuation date in subsections (1), (2) and (3) were references to the date of the taking of that absolute interest.

(9) All sums due under the provisions of this Act shall be paid to the Accountant-General of the Commissioners.