Finance Act, 1989
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Chapter II Arrangements with regard to Returns and Assessments | ||
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Delivery of returns. |
74.—The Principal Act is hereby amended by the substitution for section 36 of the following section— | |
“36.— (1) In this section— | ||
(a) notwithstanding anything contained in sections 6 and 12— | ||
(i) a reference to a taxable gift is a reference to a taxable gift taken on or after the 28th day of February, 1974; | ||
(ii) a reference to a taxable inheritance is a reference to a taxable inheritance taken on or after the 1st day of April, 1975; and | ||
(iii) a reference, other than in subparagraph (i), to a gift or a taxable gift includes a reference to an inheritance or a taxable inheritance, as the case may be; and | ||
(b) a reference to a donee includes a reference to a successor. | ||
(2) Any person who is primarily accountable for the payment of tax by virtue of section 35 (1), or by virtue of paragraph (c) of section 107 of the Finance Act, 1984 , shall, within four months after the relevant date referred to in subsection (5)— | ||
(a) deliver to the Commissioners a full and true return of— | ||
(i) every gift in respect of which he is so primarily accountable; | ||
(ii) all the property comprised in such gift on the valuation date; | ||
(iii) an estimate of the market value of such property on the valuation date; and | ||
(iv) such particulars as may be relevant to the assessment of tax in respect of such gift; | ||
(b) notwithstanding the provisions of section 39, make on that return an assessment of such amount of tax as, to the best of his knowledge, information and belief, ought to be charged, levied and paid on that valuation date; and | ||
(c) duly pay the amount of such tax. | ||
(3) The provisions of subsection (2) (c) shall be complied with— | ||
(a) where the tax due and payable in respect of any part of the gift is being paid by instalments under the provisions of section 43, by the due payment of— | ||
(i) an amount which includes any instalment of tax which has fallen due prior to or on the date of the assessment of the tax referred to in subsection (2) (b); and | ||
(ii) any further instalments of such tax on the due dates in accordance with that section; | ||
(b) where the tax due and payable is inheritance tax whichis being wholly or partly paid by the transfer of securities to the Minister for Finance under the provisions of section 45, by— | ||
(i) delivering to the Commissioners with the return an application to pay all or part of the tax by such transfer; | ||
(ii) completing the transfer of the securities to the Minister for Finance within such time, not being less than 30 days, as may be specified by the Commissioners by notice in writing; and | ||
(iii) duly paying the excess, if any, of the amount of the tax referred to in subsection (2) (b), or in paragraph (a) (i), over the nominal face value of the securities tendered in payment of the tax in accordance with the provisions of subparagraph (i). | ||
(4) Subsection (2) applies to a charge for tax arising by reason of the provisions of section 106 of the Finance Act, 1984 , and to any other gift where— | ||
(a) so far as it is a taxable gift taken before the 2nd day of June, 1982— | ||
(i) the taxable value of such gift exceeds an amount which is 80 per cent. of the lowest value upon which, at the date of such gift, tax becomes chargeable in respect of a gift taken by the donee of such gift from the disponer thereof; | ||
(ii) the taxable value of such gift falls to be aggregated with previous gifts taken by the donee of such gift from the disponer thereof and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from such disponer from an amount which is less than or equal to the amount specified in subparagraph (i) to an amount which exceeds the amount so specified; or | ||
(iii) the taxable value of such gift falls to be aggregated with previous gifts taken by the donee of such gift from the disponer thereof and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from such disponer from an amount which is greater than the amount specified in subparagraph (i); | ||
and, in this paragraph— | ||
(I) any reference to the total taxable value of all taxable gifts includes a reference to the total aggregable value of all aggregable gifts; | ||
(II) ‘aggregable gift’ and ‘aggregable value’ have the meanings assigned to them by paragraph 1 of Part I of the Second Schedule; | ||
(b) so far as it is a taxable gift taken on or after the 2nd day of June, 1982, and before the 26th day of March, 1984— | ||
(i) the taxable value of such gift exceeds an amount which is 80 per cent. of the lowest value upon which, at the date of such gift, tax becomes chargeable in respect of a gift taken by the donee of such gift from the disponer thereof; | ||
(ii) the taxable value of such gift falls to be aggregated with gifts taken by the donee of such gift, either on or before the date of such gift, from any disponer and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from any disponer from an amount which is less than or equal to the amount specified in subparagraph (i) to an amount which exceeds the amount so specified; or | ||
(iii) the taxable value of such gift falls to be aggregated with gifts taken by the donee of such gift, either on or before the date of such gift, from any disponer and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from any disponer from an amount which is greater than the amount specified in subparagraph (i); | ||
(c) so far as it is a taxable gift taken on or after the 26th day of March, 1984, the aggregate of the taxable values of all taxable gifts taken by the donee on or after the 2nd day of June, 1982, exceeds an amount which is 80 per cent. of the threshold amount (as defined in the Second Schedule) which applies in the computation of the tax on that aggregate; or | ||
(d) the donee or, in a case to which section 23 (1) applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return, | ||
and, for the purposes of this subsection, a reference to a gift or a taxable gift includes a reference to a part of a gift or to a part of a taxable gift, as the case may be. | ||
(5) For the purposes of this section, the relevant date shall be— | ||
(a) the valuation date or the 1st day of September, 1989, whichever is the later; or | ||
(b) where the donee or, in a case to which section 23 (1) applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return, the date of the notice. | ||
(6) Any person who is accountable for the payment of tax by virtue of subsection (2) or (9) of section 35 shall, if he is required by notice in writing by the Commissioners to do so, comply with the provisions of paragraphs (a), (b) and (c) of subsection (2) of this section (as if he were a person primarily accountable for the payment of tax by virtue of section 35 (1)) within such time, not being less than 30 days, as may be specified in the notice. | ||
(7) (a) Any accountable person shall, if he is so required by the Commissioners by notice in writing, deliver and verify to the Commissioners within such time, not being less than 30 days, as may be specified in the notice— | ||
(i) a statement (where appropriate, on a form provided, or approved of, by them) of such particulars relating to any property; and | ||
(ii) such evidence as they require, | ||
as may, in their opinion, be relevant to the assessment of tax in respect of the gift. | ||
(b) The Commissioners may authorise a person to inspect— | ||
(i) any property comprised in a gift; or | ||
(ii) any books, records, accounts or other documents, in whatever form they are stored, maintained or preserved, relating to any property as may in their opinion be relevant to the assessment of tax in respect of a gift, | ||
and the person having the custody or possession of that property, or of those books, records, accounts or documents, shall permit the person so authorised to make that inspection at such reasonable times as the Commissioners consider necessary. | ||
(8) The Commissioners may by notice in writing require any accountable person to— | ||
(a) deliver to them within such time, not being less than 30 days, as may be specified in the notice, an additional return, if it appears to the Commissioners that a return made by that accountable person is defective in a material respect by reason of anything contained in or omitted from it; | ||
(b) notwithstanding the provisions of section 39, make on that additional return an assessment of such amended amount of tax as, to the best of his knowledge, information and belief, ought to be charged, levied and paid on the relevant gift; and | ||
(c) duly pay the outstanding tax, if any, for which he is accountable in respect of that gift; | ||
and | ||
(i) the requirements of subparagraphs (ii), (iii) and (iv) of subsection (2) (a) shall apply to such additional return required by virtue of paragraph (a); and | ||
(ii) the provisions of subsection (3) shall, with any necessary modifications, apply to any payment required by virtue of paragraph (c). | ||
(9) Where any accountable person who has delivered a return or an additional return is aware or becomes aware at any time that the return or additional return is defective in a material respect by reason of anything contained in or omitted from it, he shall, without application from the Commissioners and within three months of so becoming aware— | ||
(a) deliver to them an additional return; | ||
(b) notwithsanding the provisions of section 39, make on that additional return an assessment of such amended amount of tax as, to the best of his knowledge, information and belief, ought to be charged, levied and paid on the relevant gift; and | ||
(c) duly pay the outstanding tax, if any, for which he is accountable in respect of that gift; | ||
and | ||
(i) the requirements of subparagraphs (ii), (iii) and (iv) of subsection (2) (a) shall apply to such additional return required by virtue of paragraph (a); and | ||
(ii) the provisions of subsection (3) shall, with any necessary modifications, apply to any payment required by virtue of paragraph (c). | ||
(10) Any amount of tax payable by an accountable person in respect of an assessment of tax made by him on a return delivered by him (other than an amount of that tax payable by the transfer of securities to the Minister for Finance under the provisions of section 45) shall accompany the return and be paid to the Accountant-General of the Commissioners. | ||
(11) Any assessment or payment of tax made under the provisions of this section shall include interest upon tax payable in accordance with the provisions of section 41.”. |