asked the Minister for Finance the average delay in the collection of capital acquisitions tax; the reason for the delay; whether he has satisfied himself with the situation, and the proposals, if any, he has to remedy the matter.
Written Answers. - Capital Acquisitions Tax.
15.
I have been advised by the Revenue Commissioners that it is not possible to state what is the average delay in the collection of capital acquisitions tax. Capital acquisitions tax, which comprises a gift tax and an inheritance tax, is, generally speaking, imposed in respect of transactions or events and not by reference to any period of time. Gift tax becomes due and payable on the date of the gift: inheritance tax, however, becomes due and payable on the date property is retained for the benefit of a successor which may be some time, and even years, after the relevant death giving rise to the claim.
Assessments of capital acquisitions tax are made by the Revenue Commissioners on returns received from, or on behalf of, the taxpayer and over 75 per cent of the tax so assessed is paid within 30 days of the date of assessment. Payment of the balance of the tax assessed is sought by way of reminder which normally issues two months after the date of assessment, followed a month later, if non-payment continues, by a 14-day notice to pay. The case is then referred for legal proceedings to recover the amount due. Interest at 15 per cent per annum is claimed on all tax in arrears. In these circumstances, I do not consider that the collection of this tax gives cause for concern.