Vol. 480 No. 2
152 Mr. Ring asked the Minister for Finance the reason a pension of a person (details supplied) in County Waterford is being assessed as liable for capital acquisitions tax and income tax in view of the fact that one amount is being assessed twice; and if he will make a statement on the matter. [13786/97]
I am informed by the Revenue Commissioners that under the capital acquisitions tax code, the value of an annuity type pension must be capitalised at the date of the inheritance. Depending on the amount of the capital sum thus calculated and the tax-free threshold applicable to the recipient of that capital sum the recipient may be liable to inheritance tax on that sum. The pension subsequently paid to the recipient may also be liable to income tax.
In the case of the person concerned an inheritance tax liability did occur and the person is also liable to income tax in respect of payments received under the pension.
