Section 15 Surcharges for undervaluation in case of voluntary disposition inter vivos
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(1) Where an instrument operates or is deemed to operate as a voluntary disposition inter vivos by operation of the provisions of section 30 or 54 and the statement of value of such property, or in the case of a lease the minimum amount or value referred to in section 54, provided to the Commissioners under subsection (5) of section 8 (in this section referred to as the "submitted value") is less than the value of the property as agreed with, or ascertained by, the Commissioners, subject to the right of appeal under section 21, (in this section referred to as the "ascertained value") then, as a penalty, the duty chargeable on the conveyance or transfer, or lease, shall be increased by an amount (in this section referred to as the "surcharge") calculated according to the following provisions:
(a) subject to subsection (2), where the submitted value is less than the ascertained value by an amount which is greater than 15 per cent of the ascertained value but not greater than 30 per cent of the ascertained value, a surcharge equal to 25 per cent of the total duty chargeable on the instrument;
(b) where the submitted value is less than the ascertained value by an amount which is greater than 30 per cent of the ascertained value but not greater than 50 per cent of the ascertained value, a surcharge equal to 50 per cent of the total duty chargeable on the instrument;
(c) where the submitted value is less than the ascertained value by an amount which is greater than 50 per cent of the ascertained value, a surcharge equal to the total duty chargeable on the instrument.
How is surcharge for undervaluation in the case of voluntary disposition inter vivos calculated?
(1) You are liable to a surcharge if you understate the value of a gift, i.e., a voluntary dispositions inter vivos. The surcharge depends on the degree of understatement, i.e., the degree to which the property's submitted value is less than its asce...
(2) No surcharge shall be chargeable under paragraph (a) of subsection (1) where the difference between the submitted value and the ascertained value is less than [€6,350]1.
Amendments
1 Substituted by Finance Act 2001 section 240(2) and Schedule 5 as respects any act or omission which takes place or begins on or after 1 January 2002.
(3) Where a statement of value, or in the case of a lease the minimum amount or value referred to in section 54, is not provided in accordance with subsection (5) of section 8, then the liability of an instrument to a surcharge under this section may be ascertained by the Commissioners by the substitution of the consideration, other than rent in the case of lease, stated in the instrument for the submitted value.
If I do not file a statement of value when submitting a voluntary disposition for stamping, how will Revenue decide whether a surcharge applies?
(3) If no statement of value (section 8(5)) is filed with the voluntary disposition when stamping is sought, Revenue will base their decision on whether a surcharge might apply by treating as the submitted value the consideration stated in the instru...
(4) ...
Amendments
Subs (4) repealed by Finance (No. 2) Act 2008 section 97 and Schedule 4 para 2 as respects any tax that becomes due and payable on or after 1 March 2009.
