Capital Acquisitions Tax Consolidation Act 2003 section 53

Surcharge for undervaluation of property

Section 53 imposes a surcharge where an asset included in a capital acquisitions tax return has been substantially undervalued by the accountable person.

• Where the declared market value of an asset in a return is less than 67% of its ascertained value, a surcharge of 10%, 20%, or 30% of the tax attributable to that asset applies, depending on the degree of undervaluation.
• Interest is payable on the surcharge as if it were tax, and the surcharge and any interest are chargeable and recoverable as part of the tax.
• A person aggrieved by a surcharge may appeal to the Appeal Commissioners within 30 days of the surcharge notice, on the grounds that there were sufficient grounds for the estimate of market value.
• The surcharge bands are: 10% where the declared value is between 50% and 67% of the ascertained value; 20% where between 40% and 50%; and 30% where less than 40%.