asked the Minister for Finance if he is aware that a child, who is legally adopted under the laws of another country, is treated as a stranger in blood for the purposes of estate and legacy duty; and if he will consider amending the law to cover such cases.
Ceisteanna—Questions. Oral Answers. - Estate and Legacy Duty.
8.
Adoption is not relevant to the question of estate duty. The rate of estate duty is determined solely by the value of the total estate passing on death.
The rate at which legacy duty or succession duty is chargeable is, however, determined by the relationship of the beneficiary to the predecessor. For the purpose of these duties a person adopted under Irish law is treated as lawful issue of the adopters. Adoption under the laws of any other country has not this effect.
I do not propose to introduce amending legislation on the lines which the Deputy appears to have in mind.
Has the Minister received any representations in the matter?
I cannot recall that I have and I have not been notified that any representations are on record.
Would the Minister not consider, where a person has been adopted abroad by people resident abroad and who later become resident and domiciled here, recognising the adoption for the purposes of legacy and succession duties?
The adoption laws differ in other countries. Our adoption laws are very stringent. If the adoption laws in the foreign country were very loose and capable of changing the relationship between the adopter and the adopted, there would be a complication so far as the rights of succession and intestacy, for example, would be involved, and therefore unless there was a code in the foreign country exactly similar to ours, it would be difficult to apply the same rights in respect of legacy and succession duties.
I understand the position is that where a person has been adopted under the laws of another country and the adopting parents come to reside here and want to pass an estate subsequently to the adopted child, they are liable for the full duty and do not come under ordinary legacy duties?
That is so, but legacy and succession duties are chargeable only at the rate of one per cent and affect estates only in excess of £15,000. Lineal ancestors of the property owner who dies are relieved of the one per cent duty under a recent Finance Act. I am suggesting to the Deputy that the one per cent obligation is not a very onerous burden for a person who is adopting a child under foreign laws.
Surely it would be ten per cent if the adoption is not recognised? It is bound to be ten per cent.
Would the Minister not agree that, irrespective of the amount involved, there would be discrimination against the child adopted under the laws of another country? Surely he would agree that this is most undesirable?
The difficulty is that adoption laws abroad are not the same as ours, which are very stringent, and I think the Irish people would want them that way. It could be that the relationship would be changed under some foreign laws and that would have effect on the adopter and adopted at the time of succession.
Could the Minister say in such a case if such a child could be readopted under Irish law?
There is a provision whereby under section 39 of the Finance Act of 1960 a person under a certain age could not be adopted legally in this country and that provision could apply abroad.
At the passage of the Act only?
Yes, at the passage of the Adoption Act. That is true.
Would the Minister not agree that it would not be necessary to interfere with the Adoption Act and that an amendment of the Finance Act would cover this?
I expect that would be the case.
Would the Minister favourably consider it?
I shall consider it but I will not say favourably or otherwise.
When the Minister is considering it, would he also consider that this legacy duty is ten per cent and not the figure he mentioned?