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Tax 2 > CAT > Flashcards

CAT Flashcards

1
Q

what are the two events that lead to CAT

A

gift
inheritance

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2
Q

who is a disponer

A

person making gift/inheritance

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3
Q

who is donor

A

person making gift

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4
Q

who is donee

A

person receiving gift

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5
Q

who is successor

A

person receiving inhertiance

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6
Q

who is beneficiary

A

person receiving gift/inhertiance

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7
Q

who is included in group A threshold

A

child
minor of deceased child
favourite niece/nephew

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8
Q

who is included in group B

A

parent, brother, sister, niece, nephew, grandparent, grandchild

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9
Q

who is included in group c

A

everyone else
in laws
cousins
divorced couples

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10
Q

CAT rate

A

33%

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11
Q

small gift exemption annual amount

A

3000

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12
Q

from what date are benefits received aggregated for the lifetime limits

A

after 5 december 1991

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13
Q

definition of a gift

A

a person becomes beneficially entitled in possession of the benefit

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14
Q

what does beneficially entitiled in possession mean

A

the person can make use of and enjoy the property today as opposed to having the future right to do so

ie does not apply for gifts with conditions ie. when you pass your exams, you will be gifted x amount

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15
Q

what is a limited interest on a gift

A

benefit only lasts for a certain period of time

eg father gifts daughter house while she is studying in university

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16
Q

if the doner is not a resident, and the donee is, will CAT be charged

A

yes

17
Q

if the doner is not a resident nor is the donee, will CAT be charged

A

only if an irish asset

18
Q

examples of irish assets for CAT

A

land in ireland
money in an irish bank

19
Q

what is the incumbrance free value

A

the MV of gift/inheritance less liabilities/costs

20
Q

what is the taxable value

A

incumbrance free value less any consideration paid

21
Q

examples of allowable deductions to get to the incumbrance free value

A

legal fees
admin costs
stamp duty
future debts/liabilities (DISCOUNTED TO PRESENT VALUE)

22
Q

if there is a contingent liability, is this allowable deduction

A

no

only certain liabilities are deductible

in the case where it does become a liability, CAT can be recalculated and a refund can be given

23
Q

is there CAT between spouses

A

no

23
Q

is there CAT between spouses

A

no

24
Q

what can the definition of a child include

A

step child
adopted child
some foster children
natural child

25
Q

how many small gift exemptions are allowable

A

one per disponer per year

26
Q

is CGT charged on death

A

no

27
Q

how to decide if to gift something now or leave in will

A

now - CGT charge, CAT charge, stamp duty

in will - CAT charge only

28
Q

how do thresholds change on the death of civil partners

A

spouse steps into deceased spouse’s shoes

29
Q

if you receive a gift and the disponer dies within two years, what happens

A

becomes inheritance

but small gift exemption still applies

30
Q

how does CGT/CAT offset work

A

any CGT paid on the gifting of an asset by the disponer may be credited against any CAT arising on the donee of that gift

31
Q

condition for CGT/CAT offset

A

donee must retaine the asset for 2 years

otherwise clawback

32
Q

pay and file date for gifts/inheritances recieved between 1 jan and 31 aug

A

31 oct same year

33
Q

pay and file date for gifts/inheritances received between 1 sep and 31 dec

A

31 oct following year

34
Q

how are CAT returns filed

A

electronically

35
Q

what is the penalty for late filing

A

surcharge

36
Q

what is the penalty for underestimating market value of property in CAT return

A

30% surcharge

37
Q

what is the penalty for late payment/underpayment on tax

A

interest

Tax 2 (6 decks)

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