The Gazette 1961

UNDERTAKING FOR IMMUNITY FROM

INCOME TAX PENALTY PROCEEDINGS

The Minister for Finance announced in Dail

fiireann in the course of his budget speech on the

zjrd April, 1963, that following on his intention to

accept recommendations from

the Income Tax

Commission on tax evasion, an opportunity would

be given to all persons who so wish to make a full

disclosure of their tax position to the Revenue, and

by so doing they would avoid incurring any penalties.

A form of undertaking to be signed by taxpayers-

in order to avail of these terms has now been

prepared and copies may be had on application to

the Chief Inspector of Taxes, Special Branch, 19-22

Dame Street, Dublin, The Chief Inspector of Taxes,

Investigation Branch,

61 Middle Abbey Street,

Dublin, or from the office of any Inspector of Taxes.

The undertaking if availed of, should be completed

and lodged with the Revenue Commissioners by the

3ist March, 1964 and the undertaking is to give

information to the Revenue to enable the Revenue

to complete the amount of tax underpaid by the

3oth June, 1964. An extract from the Minister's

budget speech is printed on the back of the form of

undertaking.

SAVING STAMP DUTY ON GIFTS OF

LAND

An article in

L,an> Notes

(July, 1963, page 173,

Vol. 82, No. 7) contains a suggestion for a means

whereby stamp duty may be avoided on a voluntary

disposition of property. The scheme depends on

a House of Lords decision of Stanyfort

Inland

Revenue Commissioners

(1930) AC 339.

The

example given is that of

donor who wishes to

settle property absolutely on his wife.

Four deeds are required to effect the settlement.

They are as follows :—

(I) A Deed of Trust to which there are four

parties (i) the settlor, (ii) the wife of the

settlor, (iii) the settlor and his solicitor and

(iv) two other persons who are to be trustees

of the trust instrument. The trusts are (i) such

trusts and with and subject to such powers

and provisions as the donor and his solicitor

shall from time to time by any deed or deeds

revocable or irrevocable jointly appoint and

(ii) in default of and until and subject to any

such appointment in trust for the wife in fee

simple. This document will also declare that

the trustees are appointed for the purposes of

the Settled Land Acts and that the statutory

power of appointing new trustees applies.

The donees of the power of appointment

should be the settlor and his solicitor as if

the trustees or the wife herself were given

this power the Revenue could assess duty on

the deed.

(II) The second document

a vesting deed

whereby the donor declares that the land

with the property is vested in the wife in fee

simple on the trusts declared by document

(III) This is a simple deed whereby the donor and

his solicitor release and give up their joint

general powers under document I. This

document should not be in existence or even

in draft form at the time of the execution of

document I and document II or if it is the

Revenue may claim that it attracts ad valorem

duty appropriate to a voluntary disposition

under the " All One Transaction Rule ".

(IV) The fourth and last document is a deed of

discharge by the trustees of the trust instru

ment in favour of the wife. This deed recites

the vesting deed (Document II)

and

the

fact that all equitable interests and powers

under the trust instrument have ceased and

determined. As a result of this the trustees

declare that they are discharged from the

trusts of the trust instrument (Document

I).

This deed merely records

that the

settlement created by document I

is at

an end.

The legal estate already being in

the wife by virtue of document II, she

becomes absolute owner in fee simple of the

property and would be able to deal with the

property as her own and treat any money

arising as a result of any transaction carried

out by her as hers beneficially. According

to the author of the article the stamp duty in

each of the four deeds would be IDS. only

that is, assuming that the decision in the

case is regarded as being the law.

EUROPEAN CONVENTION ON HUMAN

RIGHTS AND FUNDAMENTAL

FREEDOMS

To mark the loth anniversary (September 3) of

the entry into force of the European Convention on

Human Rights and Fundamental Freedoms, the

Directorate of Information of the Council of Europe

has published a supplement to the

Council of Europe

News

outlining the background to the Convention

and the main developments under it.

Sufficient copies of the supplement are being

reserved for members of the Incorporated Law

Society, and are available free.