asked the Minister for Finance if any reliefs apply to State servants in relation to estate duty that are not applicable to other members of the community.
Ceisteanna—Questions. Oral Answers. - Estate Duty Reliefs.
15.
Section 5 of the Finance Act, 1945, exempted from estate duty and legacy duty, in connection with the death of a member of the Defence Forces, deferred pay credited to the pay account of the member or any gratuity granted in respect of his services with the Defence Forces. Apart from this, there are no special death duties reliefs applicable to State servants.
Gratuities paid by grace and not as of right on the death of any person, whether a State servant or not, have never been within the scope of estate duty. I announced in my budget statement, however, that the Finance Bill would contain a general provision amending the estate duty charge. This general provision will bring payments made ex gratia on death under a superannuation scheme or arrangement into liability to estate duty. Gratuities affected by this new charge will include among other things an amount paid under the Superannuation Acts to the personal representatives of a deceased civil servant. They will include also an annuity secured to the widow of a civil servant by the surrender of a part of his pension.
Does the Minister recall denying in a most definite way in the course of the discussion on the Financial Resolution that this was the effect of what he was proposing, namely, to bring within the scope of the 1965 financial regulations these payments on death which up to now were not caught?
No, the Deputy is on the wrong track altogether. He will remember that during the course of the debate on the Finance Bill last year, certain questions were raised about this non-liability to death duty arising on the death of a civil servant. These benefits were always regarded as ex gratia, and in common with other ex gratia payments on death, they were not subject to estate duty. There was a general consensus of opinion in the House that these payments should be brought within the liability of estate duty. For this purpose the section is now being amended.
My point is that when we were discussing the Financial Resolution the Minister denied that was the purpose of the Financial Resolution we were asked to vote on.
I should like to check on what I said, but what I have now told the House is the truth of the position.
It is a sad situation.