The Gazette 1977

DECEMBER 1977

GAZE1TE

tenants in common in consideration of natural love and affection would be an example of a transaction in respect of which a certificate of discharge from Gift Tax would be required. This applies no matter how small the value of the property may be, as the purchaser cannot be certain that there have not been previous taxable gifts sufficient to exhaust the tax-free threshold between the spouses. It should be noted that there can be a liability to Gift Tax in any case where full consideration has not been paid by the donee, even though there may have been no intention on the part of the donor to benefit the donee. A sale at an undervalue, which both parties mistakenly believe to be the true market value, would give rise to a charge to Gift Tax. In some cases there will be nothing on the title to alert a purchaser to the fact that an earlier sale was at an undervalue. Under Section 47(3) of the C.A.T. Act the purchaser, not having been put on notice of the gift, will take the property free of the charge to C.A.T. However, it is necessary to be careful in any case where there has been a -ale between close relatives. The Stamps Branch of the Revenue Commissioners will normally require a conveyance or transfer between close relatives to be adjudicated. In many cases they will maintain that the market value is greater than the sale price, and stamp duty will be payable at 1% on a consideration greater than the consideration stated in the conveyance or transfer. Such a conveyance or transfer will therefore be one under which the transferee becomes entitled "otherwise than for full consideration in money or money's worth paid by him" and will give rise to a charge to Gift Tax. It is essential therefore that any subsequent purchaser should obtain a certificate of discharge from Gift Tax. In all cases the Vendor's Solicitor applies for a certificate of discharge by completing in duplicate a form C.A.ll. This form gives full details of the property comprised in the gift or inheritance and specifies the nature and date of the disposition (e.g. will or deed of appointment) under which the benefit was taken. The application is for a discharge from capital acquisitions Signed by President 1. Local Government (Water Pollution) Act 19 March 1977 2. Health Contributions (Amendment) Act 1977 21 March 1977 3. Social Welfare Act 1977 21 March 1977 4. Bula Limited (Acquisition of Shares) Act 1977 29 March 1977 5. European Communities (Amendment) Act 1977 29 March 1977 6. Worker Participation (State Enterprises) Act 1977 4 April 1977 7. Protection of Employment Act 1977 5 April 1977 8. Intoxicating Liquor Act 1977 5 April 1977 9. Protection of Young Person (Employment) Act 1977 6 April 1977 10. Unfair Dismissals Act 1977 6 April 1977 11. Courts Act 1977 10 May 1977 12. Misuse of Drugs Act 1977 18 May 1977 13. National Agricultural Advisory, Education and Research Authority Act 1977 24 May 1977 14. Prisons Act 1977 24 May 1977 15. Oil Pollution of the Sea (Amendment) Act 1977 1June 1977 16. Employment Equality Act 1977 1 June 1977 17. Friendly Societies (Amendment) Act 1977.. 1 June 1977 18. Finance Act 1977 1 June 1977 19. Breton Woods Agreement (Amendment) Act 1977 1 June 1977 No. Name of Statute

tax, and the applicant does not have to specify whether gift tax or inheritance tax is the relevant tax. The Revenue then return one copy of the form C.A. 11 to the applicant, having completed the certificate at the foot of the form that on the facts as disclosed there is no outstanding charge for gift/inheritance tax (as appropriate). As in the case of death duties, the printed certificate of discharge from gift/inheritance tax at the foot of form C.A. 11 reserves the right of the Revenue to readjust the taxable value in the event of a sale or compulsory acquisition, although in this case the right applies only if the sale or compulsory acquisition takes place within three years from the date of the gift or inheritance. In addition, if the property comprised in the gift or inheritance included "agricultural property" to which "agricultural value" applied under Section 19, the certificate reserves the right of the Revenue to re-adjust the taxable value in the event of a sale or compulsory acquisition within six years from the date of the gift or inheritance. The reference here is to the relief given by Section 19 of the Capital Acquisitions Tax Act, which reduces by the lesser of 50% or £100,000 the taxable value of a gift or inheritance taken by an individual who qualifies as a "farmer" under the Section. The relief is lost and the full amount of tax becomes payable if the agricultural property is sold or compulsorily acquired within six years after the date of the gift or inheritance and is not replaced by other agricultural property within one year of the sale or compulsory acquisition. The Solicitor for the purchaser must ensure that the Revenue have deleted these paragraphs from the certificate and that the discharge from Capital Acquisitions Tax is absolute or unconditional. (Part II of this Article, which will appear in the next issue, will deal with Wealth Tax and Capital Gains Tax.) 20. Industrial Credit (Amendment) Act 1977.... 9 Nov. 1977 21. Export Promotion (Amendment) Act 1977.. 9 Nov. 1977 22. Telephone Capital Act 1977 9 Nov. 1977 23. Dairy Produce (Miscellaneous Provisions) (Amendment) Act 1977 9 Nov. 1977 24. Garda Siochana Act 1977 ? 15 Nov. 1977 25. National Board for Science and Technology Act 1977 16 Nov. 1977 26. Control of Exports (Temporary Provisions Act 1956) (Continuance) Act 1977 30 Nov. 1977 27. Ministers and Secretaries (Amendment) Act 1977 6 Dec. 1977 28. Ministers and Secretaries (Amendment) (No. 2) Act 1977 6 Dec. 1977 29. Oireachtas (Allowances to Members) and Ministerial, Parliamentary and Judicial Officer (Amendment) Act 1977 8 Dec. 1977 30. European Assembly Elections Act 1977 9 Dec. 1977 31. Companies (Amendment) Act 1977 12 Dec. 1977 32. Finance (Excise Duty on Tobacco) Act 1977 20 Dec. 1977 33. Gaeltacht Industries (Amendment) Act 1977 20 Dec. 1977 34. International Development Association (Amendment) Act 1977 20 Dec. 1977 35. Nitrigin Eireann Teoranta Act 1977 20 Dec. 1977 36. Appropriation Act 1977 21 Dec. 1977 37. Industrial Development Act 1977 21 Dec. 1977 Private Acts — None 197

ACTS OF THE OIREACHTAS, 1977