Capital Acquisitions Tax Act, 1976

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SECOND SCHEDULE

Computation of Tax

Sections 9, 36, 40, 53 and 54.

PART I

Preliminary

1. In this Schedule—

“aggregable gift” means a gift taken by a donee on or after the 28th day of February, 1969, and before the 28th day of February, 1974, which, so far as it is a taxable gift, is by virtue of section 9 to be aggregated with any later taxable gift or taxable inheritance for the purpose mentioned in that section;

“aggregable value” means the taxable value of an aggregable gift;

“appropriate Table”, in relation to a donee or successor who, at the date of the gift or at the date of the inheritance, in respect of which gift or inheritance the tax is being computed, is—

(a) the spouse, child, or minor child of a deceased child, of the disponer, means Table I;

(b) a lineal ancestor or a lineal descendant (other than a child, or a minor child of a deceased child) of the disponer, means Table II;

(c) a brother or sister, or a child of a brother or of a sister, of the disponer, means Table III;

(d) a donee or successor who does not stand to the disponer in a relationship referred to in subparagraph (a), (b) or (c), means Table IV;

contained in Part II of this Schedule.

2. In each Table contained in Part II of this Schedule, “value” means—

(a) in the case referred to in paragraph 3, the taxable value referred to in that paragraph;

(b) in the case referred to in paragraph 4, the aggregate referred to in that paragraph.

3. Subject to the provisions of paragraph 6, the tax chargeable on the taxable value of a taxable gift or a taxable inheritance, in the case where the donee or successor has taken no other taxable gift or taxable inheritance or aggregable gift from the same disponer, shall be computed at the rate or rates of tax applicable to that taxable value under the appropriate Table.

4. Subject to the provisions of paragraph 6, the tax chargeable on the taxable value of a taxable gift or a taxable inheritance, in the case where the donee or successor has previously taken one or more taxable gifts on or after the 28th day of February, 1974, or taxable inheritances on or after the 1st day of April, 1975, or aggregable gifts, from the same disponer, shall be computed at the rate or rates of tax applicable under the appropriate Table to such part of the aggregate of—

(a) that taxable value;

(b) the taxable values of all such previous taxable gifts and taxable inheritances (if any); and

(c) the aggregable values of all such aggregable gifts (if any),

as is the highest part of that aggregate and is equal to that taxable value.

5. In each Table contained in Part II of this Schedule, any rate of tax shown in the third column is that applicable to such portion of the value (within the meaning of paragraph 2) as exceeds the lower limit shown in the first column but does not exceed the upper limit (if any) shown in the second column.

6. The tax chargeable on the taxable value of a taxable gift shall be 75 per cent. of the amount of tax computed in accordance with this Schedule.

7. For the purposes of this Schedule, all gifts and inheritances taken by a donee or successor from one disponer on the same day shall count as one, and to ascertain the amount of tax payable on one gift or inheritance of several taken on the same day, the amount of tax computed under this Schedule as being payable on the gifts or inheritances taken on that day shall be apportioned rateably, according to the taxable values of the several taxable gifts and taxable inheritances taken on the one day.

8. Where any donee or successor is, at the date of the gift or at the date of the inheritance, the surviving spouse of a deceased person who, at the time of his death, was of nearer relationship than such donee or successor to the disponer, then such donee or successor shall, in the computation of the tax payable on such taxable gift or taxable inheritance, be deemed to bear to the disponer the relationship of that deceased person.

9. In any case where—

(a) the donee or successor is a nephew or niece of the disponer who has worked substantially on a full-time basis for the period of 5 years ending on the date of the gift or the date of the inheritance in carrying on, or assisting in the carrying on of, the trade, business or profession or the work of or connected with the office or employment of the disponer; and

(b) the gift or inheritance consists of property which was used in connection with such trade, business, profession, office or employment or of shares in a company owning such property,

then, for the purpose of computing the tax payable on the gift or inheritance, the donee or successor shall be deemed to bear to the disponer the relationship of a child.

PART II

TABLE I

Applicable where the donee or successor is the spouse, child, or minor child of a deceased child, of the disponer.

TABLE II

Applicable where the donee or successor is a lineal ancestor or a lineal descendant (other than a child, or a minor child of a deceased child) of the disponer.

TABLE III

Applicable where the donee or successor is a brother or a sister, or a child of a brother or of a sister, of the disponer.

TABLE IV

Applicable where the donee or successor does not stand to the disponer in a relationship referred to in Table I, II or III of this Part of this Schedule.