Revenue Note for Guidance

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Revenue Note for Guidance

909 Power to require return of property

Summary

This section requires a “statement of affairs” of a taxpayer to be provided within a specified time period upon a written request from an inspector to the taxpayer. This power may be invoked where a person is required to deliver a tax return. There are provisions to ensure that property of a spouse, a civil partner, minor children or a trustee of the taxpayer should also be included in this “statement of affairs”.

This section also sets out the factual data which must be included in the “statement of affairs”. The person completing the “statement of affairs” must also sign it and include a declaration that the statement is correct to the best of their knowledge and belief. Finally, guidelines for calculating the cost of acquisition of an asset are also included.

Details

Definitions

(1)(a) “asset” includes any interest in an asset such as a share in the ownership of the asset.

“limited interest” – this means an interest in property other than a leasehold interest or any other absolute interest. It can last for the duration of a life, lives, or a certain period.

“prescribed” means prescribed by the Revenue Commissioners.

“property” includes interests and rights of any description and, without prejudice to the generality of these words, also includes —

  • property in which a limited interest subsists or on which a limited interest is charged or secured,
  • an interest in expectancy and property included in a settlement made by a person,
  • an interest or share in a partnership, joint tenancy, or estate of a deceased person,
  • stock or shares in a company being liquidated, or
  • an annuity.

“settlement” has the meaning set out in section 794.

“specified date” is the date of the notice under subsection (2).

“tax” is income tax and capital gains tax.

Cost of acquisition of an asset

(1)(b) In this section, the cost of acquisition of an asset includes —

  • the amount or value in money or moneys’ worth of the consideration given by or on behalf of the beneficial owners to acquire the asset together with any incidental costs incurred in acquiring the asset, or, if the asset was not acquired by the person, the expenditure incurred in creating or providing it (e.g. a sculpture);
  • any expenditure incurred which added to the value of the asset and which is reflected in the state or nature of the asset on the specified date and any expenditure incurred in establishing, preserving or defending legal title to, or a right over, the asset (expenditure incurred which did not add to the value of the asset (e.g. an abortive planning application) must not be included in the cost of acquisition).

Statement of affairs

(2) Where a person is required under the Tax Acts or the Capital Gains Tax Acts to deliver a tax return, an inspector of taxes or the inspector of returns may, by notice served in writing on the person, require the person to deliver to them a “statement of affairs” within a specified period for the purposes of determining the person’s tax liability. The inspector may issue a further notice or notices in writing requiring the delivery to him/her, within a specified period (not being less than 30 days), a statement verifying the statement of affairs together with such evidence, etc which the inspector may require in respect of any property (assets and liabilities) included in the statement or in respect of any property (assets and liabilities) the inspector believes should have been included in the statement of affairs.

(3) The term “statement of affairs” is widely defined to encompass all assets and liabilities of the person and their spouse or civil partner. Where a person holds assets or liabilities in trust on behalf of another person, the trustee may also be served with such a notice requiring a “statement of affairs” to be provided. The “statement of affairs” is to include any assets of a minor child of the person upon whom notice has been served, where those assets have previously been disposed of by that person whether to the minor child or not, or the assets were acquired for the minor child with consideration supplied directly or indirectly by the person.

(4) The “statement of affairs” is to contain full details of each asset including—

  • a full description,
  • its location on the specified date,
  • the cost and date of its acquisition,
  • the name and address of the vendor if it was not acquired at arm’s length, and
  • details of any insurance policies taken out in respect of it.

The statement must be signed and accompanied by a declaration by the person that the particulars are correct and complete to the best of their knowledge and belief. The Revenue Commissioners may require that the declaration is made under oath.

Relevant Date: Finance Act 2019