(1) In this section-

"records" includes books, accounts, documents, and any other data maintained manually or by any electronic, photographic or other process, relating to-

(a) property, of any description, which under or in consequence of any disposition, a person becomes beneficially entitled in possession to, otherwise than for full consideration in money or money's worth paid by that person,

(b) liabilities, costs and expenses properly payable out of that property,

(c) consideration given in good faith, in money or money's worth, paid by a person for that property,

(d) a relief or an exemption claimed under any provision of this Act, and

(e) the valuation, on the valuation date or other date, as the case may be, of property the subject of the disposition.

(2) Every person who is an accountable person shall retain, or cause to be retained on his or her behalf, records of the type referred to in subsection (1) as are required to enable-

(i) a true return, additional return or statement to be made for the purposes of this Act, or

(ii) a claim to a relief or an exemption under any provision of this Act to be substantiated.

(3) Records required to be retained by virtue of this section shall be retained-

(a) in written form in an official language of the State, or

(b) subject to section 887(2) of the Taxes Consolidation Act 1997, by means of any electronic, photographic or other process.

(4) Records retained for the purposes of subsections (2) and (3) shall be retained by the person required to retain the records-

[(a) where the requirements of section 46(2), requiring the delivery of a return on or before the dates mentioned in section 46(2A), are met, for the period of 6 years commencing on the valuation date of the gift or inheritance, or]¹

(b) notwithstanding paragraph (a), where an accountable person fails to comply with the requirements of the provisions referred to in paragraph (a) in the manner so specified, or, where any person is required to deliver a return, additional return or statement under this Act other than the provisions referred to in paragraph (a), for the period of 6 years commencing on the date that the return, additional return or statement is received by the Commissioners.

(5) Any person who fails to comply with subsection (2), (3) or (4) in respect of the retention of any records relating to a gift or inheritance is liable to a penalty of [€3,000]¹; but a penalty shall not be imposed under this section on any person who is not liable to tax in respect of that gift or inheritance.