andMr. P. Barry asked the Minister for Finance the maximum length of time over which capital acquisitions tax may be paid and the cost to the Exchequer of doubling this period.
Written Answers. - Capital Acquisitions Tax.
300.
Capital acquisitions tax may, at the option of the taxpayer, be paid by five equal yearly instalments, the first of which is due 12 months from the date upon which the tax becomes payable. This option is available mainly in respect of the tax chargeable on lands and house property. While it would not be possible to estimate with any certainty the cost to the Exchequer of doubling the instalment period to ten years, it can be assumed that the sum involved would not be significant for two main reasons. Firstly, tax that is being paid by instalments is, in common with all outstanding capital acquisitions tax, liable to a charge to simple interest of 1¼ per cent per month. Secondly, the percentage of taxpayers that currently avail of the option to pay by instalments is as low as 5 per cent of all taxpayers.