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GAZETTE
i SEPTEMBER 1991
Pract ice
Notes
CERTIFICATE OF DISCHARGE
FROM CAT
Capital Acquisitions Tax is a charge
on the property comprised in the
taxable gift or inheritance. The
charge has priority over all other
charges and interests created by
the donee/successor.
The charge lapses in favour of a
bona fide purchaser or mortgagee
for full value on the expiration of 12
years from the date of the
gift/inheritance.
When the tax has been paid the
Revenue Commissioners are
obliged to give a certificate of
discharge from Capital Acquisitions
Tax which may be limited in the
following ways:-
1. Where there is a gift and the
disponer dies within 2 years
from the date of the gift, the gift
is deemed to be an inheritance
and additional tax becomes pay-
able. The certificate of dis-
charge will be restricted to
cover this contingent liability.
2. If at the time of the issue of the
certificate of discharge there
has been no sale of the property
but a sale takes place within 3
years of the date of gift or
inheritance, the certificate will
be restricted to cover this
contingent liability.
3. Where agricultural relief is
claimed in respect of a gift or
inheritance and there is a sale
within 6 years of the gift or
inheritance the agricultural relief
may be withdrawn and the
certificate will be restricted to
cover this contingent liability.
Difficulties may arise if the
donee/successor wishes to borrow
money on the security of the pro-
perty the subject matter of the gift/
inheritance. A lending institution will
usually,
and if it is a building
society, must,
insist on having
a first legal charge over the property.
Unless therefore an unrestricted
certificate of discharge has issued
a solicitor cannot undertake to put
a first legal charge in place over
the property in favour of the
lending institution or certify to a
building society, that it can take a
first legal charge in place over the
property.
If the certificate is restricted then
any undertaking to the lending
institution should be qualified to
take account of the fact that the
certificate is so restricted.
Taxation Committee
MEDICO/LEGAL FEES
LAW SOCIETY'S POSITION
1. Agreement has been reached
between the Irish Hospital
Consultants Association and the
Irish Insurance Federation in
relation to a scale of fees to be
paid to consultants for medico-
legal reports and attendances at
court. The agreed scale was
published in the January/
February 1991 issue of the
Gazette.
2. Some difficulties have arisen as
to who precisely are represented
by the Irish Hospital Consultants
Association and the Irish
Medical Organisation (IMO) It is
clear, however, the the IMO
represents some consultants
and also, apparently, that some
consultants are members of
both bodies. The Irish Insurance
Federation has indicated that the
same level of fees are applicable
to all consultants irrespective of
which of those bodies they
belong to.
3. No agreement has been reached
with the IMO in relation to fees
applicable to
general practi-
tioners.
4. The Law Society takes the view
that it should not enter into
discussions with the IMO alone
in relation to a scale of fees for
medico-legal work for general
practitioners unless any such
scale has first been agreed to by
the Irish Insurance Federation.
5. For the foregoing reasons, the
Law Society is unable to indicate
to members what scale of fee is
appropriate for general practi-
tioners. Where the costs are
being taxed, it would appear that
the appropriate scale is the scale
as fixed by the County Registrar
and/or Taxing Master. There is,
however, some indication that at
least some insurance companies
are, as a matter of practice,
willing to pay general practi-
tioners the same scale as that
applicable to consultants.
Litigation Committee
ESTATE DUTY
Members with queries on Estate
Duty should contact: —
Mr. Pat Dowling,
Capital Taxes Branch,
Revenue Commissioners,
Dublin Castle.
6792777.
Taxation Committee
CAPITAL ACQUISITIONS TAX
FORM CA24A, SHORT FORM
OF
INLAND
REVENUE
AFFIDAVIT
An abbreviated form CA24 -
Inland Revenue Affidavit - has
been introduced by this Branch,
form CA24A. It is designed to
speed up the processing of Inland
Revenue Affidavits in certain cases
where the beneficiaries are not
liable to tax. This innovation should
further improve the service to
solicitors in this area.
Supplies of the new form CA24A
may be obtained from this Branch,
Tel. 6792777 Ext. 2236.
Assistance regarding the use of
the short form Affidavit may be
obtained from the taxpayer
advisory servica Tel: 6792777 Ext.
2226, 2227, 2228, 2018.
Capital Taxes Branch,
Dublin Castle.
(Cont'd on p. 295)
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