The fiscal liability of the alienor on transfers of immovable property

Abstract

The introduction places the particular provisions being treated in this thesis within a historical context. Furthermore, the introduction discusses the sources utilised and the methodology followed in the writing of the thesis. Chapter 1 defines the concepts of Property Transfer Tax and Capital Gains Tax, comparing them with each other and explaining their enactment. Following this, important terms used within the thesis are defined, in the context of both fiscal regimes where one interprets the term differently than the other. Finally, this chapter considers the rules which exempt a transfer from the applicability of the newer Property Transfer Tax and thus submit it, or enable it to be submitted to the Capital Gains Tax regime. Chapter 2 deals with the specific provisions which impose fiscal liability on a transfer, starting with the general application of the Property Transfer Tax. Subsequently this chapter also treats the possibly applicable Capital Gains Tax provisions. The chapter considers each particular transfer, describing the rules which apply generally, and where applicable also discussing the Capital Gains Tax regime rules which may apply to such a transfer. Finally, a detailed review of the provisions dealing with trusts is carried out. Chapter 3 lists and discusses the various non-chargeable provisions, as well as forms of relief available which may reduce or even totally remove the fiscal burden. As a general rule, this chapter treats the non-chargeable provisions under the Property Transfer Tax regime, however where these may be applicable to the Capital Gains Tax regime, this is also discussed. Also mentioned are possible non-chargeable provisions which could be applied under the Capital Gains Tax regime, but not under the Property Transfer Tax. The conclusion tries to understand the legislator's intention behind the enactment of Property Transfer Tax and whether it can be said that such intention has been successful.