asked the Minister for Finance if he has given further consideration to easing the estate duties on Irish investments and real estate owned by residents in this country; and, if so, what is the result of such consideration.
Ceisteanna—Questions. Oral Answers. - Estate Duties on Irish Investments.
4.
Recent legislation has afforded considerable relief in relation to estate duties on estates generally. The Finance Act, 1960, raised the exemption limit from £2,000 to £5,000. The Finance Act, 1961, reduced the rates of duty on estates between £5,000 and £8,000 and, in the case of estates in excess of £100,000, established a uniform rate of 40 per cent. in place of the previous rates which proceeded to a maximum of 53 per cent.
Under the Finance Act, 1956, the value of a considerable range of Irish industrial securities is reduced by one-third for estate duty purposes where the deceased dies domiciled in the State. Furthermore, stock of certain National Loans is accepted at its nominal value in payment of death duties although the market value at date of death may be below the nominal value.
The question of any further easement in the death duties field is a budgetary matter to be examined at the appropriate time in the light of the Exchequer position and of other relevant considerations.
While one can appreciate the distance the Minister has gone, would he not consider the fact that the complete abolition of duties, as suggested in this Question, would bring a big inflow of capital into the country?
Well, I do not know. It is hard to say.
Does the Minister not think it would? Certainly it would not drive it out of the country.
I would not expect that it would.
Has the Minister's attention been directed to a flaw, or something which I think is a flaw, in the legislation, that if, through inadvertence, death duties are paid in cash and the estate in fact proves to have Irish Government securities which would be eligible for the concession he mentions, of payment of death duties at par, the Revenue Commissioners have not the power to refund the cash and accept the securities, and would he consider remedying that flaw, if it were unintentional in the original legislation?
I am not aware of that. I shall have to inquire about it.
There is such a difficulty.