Clause 5

by deleting subsection (1) and substituting the following subsections:“(1) Subject to the provisions of this Act, simple interest at the appropriate rates specified in the Sixth Schedule shall be payable upon all estate duty, and shall be recoverable in the same manner as if it were part of the duty —

in the case of a person dying before 1st January 2005, from the date of death of the deceased to the date of payment of the duty;

in the case of a person dying on or after 1st January 2005, from the date of death of the deceased to whichever of the following dates occurs first:

the date of receipt by the Commissioner of an estate duty return without omission of assets;

the date of the notice of assessment; or

the date of payment of the duty.(1A) In the case of a person dying on or after 1st January 2005, if any estate duty or interest thereon is not paid in full on or before the relevant date ––

a penalty equal to 6% per year of the unpaid estate duty shall be added thereto for the first complete month that the duty remains unpaid after the relevant date; and

an additional penalty of 1% per year of the unpaid estate duty shall be payable for each subsequent complete month that the duty remains unpaid, subject to a maximum of 12% per year of the amount of unpaid duty.(1B) In subsection (1A) —“relevant date” means the date 30 days after the date of the notice of assessment, or the date 6 months after the date of death of the deceased, whichever is the later;“unpaid estate duty” includes any interest payable under subsection (1)(b).”;

by deleting subsection (4) and substituting the following subsections:“(4) In cases where estate duty is payable when an interest in expectancy falls into possession, interest on the estate duty shall be payable at the appropriate rates specified in the Sixth Schedule ––

in the case of a person dying before 1st January 2005, from the date when such interest falls into possession to the date of payment;

in the case of a person dying on or after 1st January 2005, from the date when such interest falls into possession to whichever of the following dates occurs first:

the date of receipt by the Commissioner of a further estate duty return or further account in relation to such interest which falls into possession;

the date of a further notice of assessment in relation to such interest which falls into possession; or (iii)the date of payment of the duty,and if the duty or interest thereon, if any, is not paid in full within 30 days from the date of the further notice of assessment, a penalty shall be payable at the rates specified in subsection (1A).(4A) For the purposes of determining the penalty payable under subsection (4)(b), the references in subsection (1A) to ––

the relevant date shall be read as the date 30 days after the date of the further notice of assessment, or the date 6 months after the date of death of the deceased, whichever is the later; and

the unpaid estate duty shall be read as the unpaid estate duty payable on such interest in expectancy which falls into possession, and includes any interest payable under subsection (4)(b).”; and

by inserting, immediately after the word “duty” in the section heading, the words “and penalty for late payment”.