Administration

The Revenue Commissioners are responsible for the administration of capital acquisitions tax (s 117).

Audit

The Revenue may inspect any gifted property, and the books and records of the donor (s 46(7)).

Anti-avoidance

If you receive a transfer of voting power attaching to private company shares without an actual transfer of shares, you are taxed on the value of the transferred rights (s 44).

Information

The Revenue may use information acquired in relation to any tax or duty in connection with any other tax or duty for which they are responsible (TCA 1997 s 872).

The Revenue gather information for capital acquisitions tax from inland revenue affidavits (s 48) and if they feel the tax is at risk, they may refuse to issue a certificate of probate in respect of an estate until the tax is paid (s 108).

Collection

Tax

You must pay tax on the valuation date (s 51(1)). You may opt to pay in five equal yearly instalments, inclusive of interest, the first of which is due 12 months after the due date. The instalment option is not available in respect of property taken by way of limited interest (s 54).

The Revenue may take court proceedings against you if you do not pay any tax, interest, or penalties (s 63). Unpaid tax is a charge on the property to which it relates (s 60).

The Revenue may issue a clearance certificate to you after you pay the tax (s 61).

Interest

If you do not pay the tax, you are liable to interest at 0.0219% for each day the tax remains unpaid (s 51(2)).

If you overpay tax, you may be entitled to interest at 0.011% for each day or part of a day the tax is overpaid (s 57).

Surcharge

If you understate the value of an asset in your in self assessment return, you are liable to a surcharge (s 53 of):

(a) 10% if the market value you declared was between 50% and 67% of the true value,

(b) 20% if the market value you declared was between 40% and 50% of the true value,

(c) 30% if the market value you declared was less than 40% of the true value.

Penalties

If you fail to file a return you are liable to a penalty of €2,535.

If your failure is negligent, the penalty is €6,345 plus the difference between the correct liability and the tax paid. If your failure is fraudulent, the penalty is €6,345 plus twice the difference between the correct liability and the tax paid (s 58).

See INCOME TAX (Penalties) as regards enforcement of penalties.