Pádraig MacLochlainn
Question:169. Deputy Pádraig Mac Lochlainn asked the Minister for Finance the reason there continues to be a death tax on intestate wills; and if he has any plans to change same. [22472/13]
View answerTuesday, 14 May 2013
Questions (169)
Written answers
I assume that the Deputy is referring to the existence of inheritance tax which is part of Capital Acquisitions Tax (CAT). Tax is charged, subject to certain exemptions and reliefs, on the amount inherited by the donee, the person receiving the inheritance. CAT is long established and forms part of the tax system. Capital taxation is designed to apply a tax to the capital as distinct from the income of a person. The case for the taxation of capital rests mainly on considerations of equity and social justice. The object of the present system of capital taxation in Ireland, which consists of Capital Acquisitions Tax, Capital Gains Tax, Discretionary Trust Tax, Domicile Levy and now also Local Property Tax, is to ensure equity in the tax system and to reduce inequalities in the distribution of wealth.
The taxation of capital raises substantial tax revenue for the exchequer and is also preferable from the point of view of its impact on the economy to an increase in employment taxes such as income tax.
It is appropriate for CAT to be charged on an inheritance as provided for. I have no plans to abolish CAT.