CAT Query

B

brighteyes

Registered User
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1
My aunt who is now very elderly bought me a house in 1985. Neither of us can remember the exact amount that was paid but a receipt dating back to that time would suggest it was around 35,000 pounds (Irl pounds) Not sure if the legal fees are included in that amount as the receipt found is not itemised. My queries relating to this are:
  1. I dont recall any mention/payment of CAT/gift tax at the time of purchase and am just wondering if I am liable for same retrospectively and if so how is this calculated?
  2. When was CAT introduced here?
  3. If I am a beneficiary of assets in the future from any relative in the GroupB threshold bracket will the value of the house bought in 1984 be added for CAT purposes?
 
From April 1984 to 1989, for a gift from an aunt to a niece the tax-free threshold was € 20,000 and the tax rate was 20% on the next £ 7,500 and 30% on next £ 30,000

Q1. probably and their may well be interest and late payment penalty
Q2. Not sure - pre 1984 anyway
Q3. No, the calculation starts afresh from Dec 5, 2001
 
I was following the discussion and it's interesting. Isn't there a statutory limit for how long revenue can go back with regards to interests, penalties etc? Here we are talking about over 30 years ago. For example I lived in Italy and France for many years before coming back to Ireland. I'm sure in Italy for inheritance issues the revenue system can only chase you for 20 years. So if you inherited 20 millions in 1996 and paid no tax, nobody can come after you now. For income tax it's only 6 years in most cases or 12 years in particular circumstances (large tax evasion). In France I don't know about the inheritance tax but I'm sure the revenue body is barred from asking you anything after 10 years for income tax, capital gains etc. From a quick research it looks like Germany is the same 10 years, while we in Ireland must worry about what happened 30 years ago ???? So if for example an individual made a mistake or forgot to pay tax 30 years ago he can be bankrupt now after paying hundred thousands euros in penalties and interest since the 80s? It sound weird to me.

Seamus
 
There is no time limit in cases of fraud or neglect and enquiries can be made at any time in such cases. S46(7B) CATCA States where the Revenue have reasonable grounds to suspect fraud or neglect the 4 yr rule does not apply. Neglect includes failure to submit a return.

I would think however as its gone this long there is probably little or no way of them finding out beyond the aunt/the OP. I would however not be broadcasting it to anybody unless I had full intention of settling any liability. Its a legal obligation for most professionals to report suspected fraud or tax evasion.
 
In broad terms, there are 4/5 year time limits. However, in the case of taxpayer fraud or neglect, those limits are set aside.
 
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