asked the Minister for Finance if he will state, with reference to circulars issued by inspectors of taxes requesting non-apportionment of Schedule A tax on the closing of sales of property, whether in an account apportionment should be made of the gross ground rent or the ground rent less tax; and if he will make a statement in the matter to clear up the confusion which now exists.
Ceisteanna—Questions. Oral Answers. - Ground Rent Apportionment in Property Sales.
Following the introduction of the "one taxpayer, one charge" system it was arranged that, on the sale of any property, the vendor would be charged to tax under Schedule A for the period from the commencement of the relevant financial year to the date of sale and the purchaser would be charged for the period from the date of purchase to the end of that financial year. This arrangement removed the necessity to make provision in the apportionment account for tax on property. A consequential part of the arrangement was that ground rent, where payable in full, should be apportioned by reference to the gross amount and, where payable under deduction of tax, should be apportioned by reference to the net amount.
The Revenue Commissioners have had discussions with the Incorporated Law Society in this matter and it is understood that the Society will publish a statement on the arrangement in the next issue of its Gazette.