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My client has received an inheritance from his German cousin - approx. €117,000 the first amount received on 16th March 2018 with further amounts in April 2018 German inheritance tax of €43,590 was paid in March 2018 1. Am I correct in saying that my client will be liable to Irish CAT and would get a credit for the German CAT paid ? 2. When would the client have to make a declaration and payment of Irish CAT ? 3. Does it just go into his 2018 Form 11 or does he need to be making a declaration and payment sooner ? Apparently if a beneficiary of a German Estate lives in the UK no further tax would be payable

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Posted by (Questions: 33, Answers: 3)
Asked on 16 November 2018 9:03 am
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Answered on 21 January 2019 3:50 pm
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1. If the recipient is non-Irish domiciled (e.g., if he is German also) he is not subject to CAT on inheritances taken in his first firve years of residence: CATCA 2003 s 11(4). Otherwise, yes, see CATCA 2003 s 107 which provides unilateral credit relief for foreign inheritance tax suffered.

2. Yes but no CAT due (Irish CAT = 33% x (€117,000 - €16,250) = €33,247 (which is covered by the German tax paid).

3. It must be reported on the Form 11. A CAT return must be filed, and the tax if any paid:

(a) on or before 31 October, If the valuation date falls between 1 January and 31 August in the same year,

(b) on or before 31 October in the following year, if the valuation date falls between 1 September and 31 December in the previous year.

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Posted by (Questions: 5, Answers: 5186)
Answered on 23 November 2018 11:36 am

Thanks for your reply
The €117,000 was the net amount received so the gross before tax was €163,879 so I presume the calculation would then be 33% x (163,879 – 16,250) = €48,718 less the German Tax €43,590 = Irish CAT payable of €5,128
Would you agree ?
The liability due is obviously not based on when the inheritance was received ?
What is the valuation date ?

( at 5 December 2018 3:21 pm)