CAT on inheritance

supernova5

Just wondering does anyone know how strict Revenue are regarding deadline dates on a tax liability on a cash inheritance?

On the IT38 form its stated that penalties will incur for late filing and or paying off the sum owed

what I'm trying to say is, do Revenue really hold true on this or it more of a threat to entice people to pay up so that they get their money promptly?

SureYWouldntYa

For CAT they are quite strict

The surcharge on the late return is automatic and you generally won't be able to argue this, 5% if filed within 2 months after due date and 10% after this

The interest on late payment there is more scope on and they can be open to discussion, have seen bills for €14k settled for €5k

They offer the facility to pay any CAT due over 3 years with a phased payment arrangement but this would need to be agreed in advance. This would be interest free so is usually a better option than a loan to pay in full at the due date. For a cash inheritance they may not allow this as a review of bank statements can be carried out, as obviously the cash is there to pay the liability, the PPA is intended more for cases where property is inherited above thresholds. The IT38 would also state it is a cash inheritance so they would not even need bank statements to know funds should be available to pay the liability.

Be ready to file the return on time at least is my advice and get ducks in a row asap with a plan to make the payment

supernova5

https://www.boards.ie/discussion/comment/122648487#Comment_122648487

thank you for that