The Gazette 1961 - 64

UNDERTAKING FOR IMMUNITY FROM INCOME TAX PENALTY PROCEEDINGS The Minister for Finance announced in Dail fiireann in the course of his budget speech on the zjrd April, 1963, that following on his intention to accept recommendations from the Income Tax Commission on tax evasion, an opportunity would be given to all persons who so wish to make a full disclosure of their tax position to the Revenue, and by so doing they would avoid incurring any penalties. A form of undertaking to be signed by taxpayers- in order to avail of these terms has now been prepared and copies may be had on application to the Chief Inspector of Taxes, Special Branch, 19-22 Dame Street, Dublin, The Chief Inspector of Taxes, Investigation Branch, 61 Middle Abbey Street, Dublin, or from the office of any Inspector of Taxes. The undertaking if availed of, should be completed and lodged with the Revenue Commissioners by the 3ist March, 1964 and the undertaking is to give information to the Revenue to enable the Revenue to complete the amount of tax underpaid by the 3oth June, 1964. An extract from the Minister's budget speech is printed on the back of the form of undertaking. SAVING STAMP DUTY ON GIFTS OF LAND An article in L,an> Notes (July, 1963, page 173, Vol. 82, No. 7) contains a suggestion for a means whereby stamp duty may be avoided on a voluntary disposition of property. The scheme depends on a House of Lords decision of Stanyfort v. Inland Revenue Commissioners (1930) AC 339. The example given is that of a. donor who wishes to settle property absolutely on his wife. Four deeds are required to effect the settlement. They are as follows :— (I) A Deed of Trust to which there are four parties (i) the settlor, (ii) the wife of the settlor, (iii) the settlor and his solicitor and (iv) two other persons who are to be trustees of the trust instrument. The trusts are (i) such trusts and with and subject to such powers and provisions as the donor and his solicitor shall from time to time by any deed or deeds revocable or irrevocable jointly appoint and (ii) in default of and until and subject to any such appointment in trust for the wife in fee simple. This document will also declare that the trustees are appointed for the purposes of the Settled Land Acts and that the statutory power of appointing new trustees applies. The donees of the power of appointment should be the settlor and his solicitor as if

the trustees or the wife herself were given this power the Revenue could assess duty on the deed. a vesting deed whereby the donor declares that the land with the property is vested in the wife in fee simple on the trusts declared by document I. (III) This is a simple deed whereby the donor and his solicitor release and give up their joint general powers under document I. This document should not be in existence or even in draft form at the time of the execution of document I and document II or if it is the Revenue may claim that it attracts ad valorem duty appropriate to a voluntary disposition under the " All One Transaction Rule ". (IV) The fourth and last document is a deed of discharge by the trustees of the trust instru ment in favour of the wife. This deed recites the vesting deed (Document II) and the fact that all equitable interests and powers under the trust instrument have ceased and determined. As a result of this the trustees declare that they are discharged from the trusts of the trust instrument (Document I). This deed merely records that the settlement created by document I is at an end. The legal estate already being in the wife by virtue of document II, she becomes absolute owner in fee simple of the property and would be able to deal with the property as her own and treat any money arising as a result of any transaction carried out by her as hers beneficially. According to the author of the article the stamp duty in each of the four deeds would be IDS. only that is, assuming that the decision in the case is regarded as being the law. EUROPEAN CONVENTION ON HUMAN RIGHTS AND FUNDAMENTAL FREEDOMS To mark the loth anniversary (September 3) of the entry into force of the European Convention on Human Rights and Fundamental Freedoms, the Directorate of Information of the Council of Europe has published a supplement to the Council of Europe News outlining the background to the Convention and the main developments under it. Sufficient copies of the supplement are being reserved for members of the Incorporated Law Society, and are available free. 34 (II) The second document is