Expressions of Doubt
Where there is genuine doubt about the interpretation/application of the law in the Gift/Inheritance Tax return, a formal expression of doubt can be made on the return.
The following rules apply to "expression of doubt" cases:
The expression of doubt must:
- Accompany the return for the period,
- Set out full details of the circumstances of the transaction in doubt, including a reference to the provisions of the law giving rise to the doubt,
- Identify the amount of tax or deductibility in doubt in respect of the taxable period to which the expression of doubt relates,
- Be accompanied by any relevant supporting documentation, and state whether relevant professionaladvice has been taken on the matter.
An expression of doubt cannot be accepted if the return is not filed on time:
A letter of expression of doubt shall not be deemed to be made unless it has been acknowledged by Revenue as being genuine;
If the expression of doubt is not accepted as genuine, the taxpayer will be advised accordingly in writing and interest will be payable on any additional tax due;
if the expression of doubt is accepted as genuine, Revenue will make a ruling on the correct tax treatment of the transaction. If, as a result, additional tax is due, no interest will be chargeable if the tax is discharged within one month of the date on which the assessment was amended.
The use of the expression of doubt facility will not result in a case being more likely to be selected for audit;
The law provides that Revenue will not accept an expression of doubt as genuine where:
- they have issued general guidelines, e. g. Guide to Capital Acquisitions Tax, Statements of Practice, Information Leaflets, Notes for Guidance, Freedom of Information Precedents Database about the application of law in similar circumstances;
- are of the opinion the matter is otherwise sufficiently free from doubt as not to warrant an expression of doubt;
- in the opinion of Revenue the taxpayer was acting with a view to the evasion or avoidance of tax.
A person aggrieved by a decision of Revenue that a letter of expression of doubt is not genuine may appeal to the Appeal Commissioners by giving notice in writing to his/her Revenue District within twenty-one days from the date of the decision. Of course, where an accountable person is aggrieved by a Revenue ruling regarding the CAT treatment of the transaction which is the subject of the letter of expression of doubt, he/she can appeal this in the normal way.