Dáil Éireann Debate, Tuesday - 23 March 2010
223 Deputy Joan Burton asked the Minister for Finance the rationale for the introduction of section 139 of the Finance Bill 2010; the reason the abolition of secondary accountability and the 12 year CAT charge is being applied retrospectively; if he was lobbied in respect of this retrospective application; and if he will make a statement on the matter. [12686/10]
Amharc ar fhreagraThe rationale for the introduction of section 139 of the Finance Bill 2010 (as initiated) is to streamline and modernise the administration and collection of Capital Acquisitions Tax (CAT). The changes will lower compliance costs for taxpayers and simplify and streamline administration for both agents and Revenue. The proposals originated out of an internal review of the existing procedures by the Revenue Commissioners and a subsequent public consultation process on CAT. Many of the existing processes around the administration of the tax are out of line with self-assessment principles and they involve excessive certification and clearance procedures having regard to the risks involved, and the alternatives available to Revenue for managing those risks.
The measures in the Bill, which are designed to be Exchequer neutral, will allow Revenue to implement changes which will:
eliminate up to 75% of current CAT documentation;
free up Revenue staff resources for more productive audit and compliance work;
deliver faster, simpler and more straightforward processes for taxpayers and their agents; and
allow the development of CAT audit and compliance programmes that are integrated into Revenue's overall risk evaluation and analysis programme.
The abolition of secondary accountability and the 12 year CAT charge on property are being applied with effect from the date of the passing of the Finance Bill and these changes will apply to inheritances and gifts, regardless of when they were taken. Therefore, the change is being made retrospectively. However, it should be noted that once the new procedures are in place, all CAT returns, regardless of the date of the gift or inheritance, will be integrated into Revenue's risk-driven audit and compliance programmes. Therefore, there is no need to maintain separate systems for gifts or inheritances taken before the introduction of the new procedures.
The Deputy can be assured that I was not lobbied on any aspect of the CAT modernisation package, including the abolition of secondary accountability and the 12 year CAT charge.
