BARRISTER MARK BISCH,
BAKER BOTTS LLP,
EMAAR SQUARE, BUILDING 6, 7TH FLOOR,
DUBAI, UAE.
DEAR SIR,
WE ARE GLAD TO INFORM YOU IN LINE WITH YOUR DIRECTIVE WE HAVE EFFECTED THE PAYMENT OF INHERITANCE TAX CHARGEABLE ON THE ESTATE OF MR. MANFRED EMIL KERSTAN).
PLEASE FIND ATTACHED HEREWITH SCAN COPIES OF THE IAS-IFRS TAX ASSESSMENT AND THE OFFICIAL COUNTER FOIL RECEIPT, CONFIRMING FULL PAYMENT ON THE ESTATE DUTY SETTLEMENT. THE ORIGINAL COPY WILL BE DISPATCHED TO YOUR OFFICE TOMORROW.
WE LOOK FORWARD TO THE REPAYMENT OF THE OVERDRAFT FACILITY GRANTED TO YOUR GOOD SELF AT THE EARLIEST TIME POSSIBLE TO ENABLE US EFFECTIVELY RECONCILE OUR ACCOUNT BY OR BEFORE THE END OF THE FIRST QUARTER.
VERY TRULY YOURS,
SANJOY SEN,
CONSUMER BANK HEAD-
MIDDLE EAST REGION.
Attachment
Probate Department,
Dubai International Financial Center Courts
Ground Floor Building 4,
The Gate District,
Dubai, UAE.
Cc: The Manager,
Citibank AE (DUBAI),
Dubai Marina,
Dubai, UAE.
Cc: Barrister Mark Bisch,
Baker Botts LLP,
Emaar Square, Building 6, 7th Floor,
Dubai, UAE.
Dear Sirs,
RE: ESTATE DUTY SETTLEMENT/INHERITANCE TAX ASSESSMENT ON THE ESTATE OF MR. MANFRD EMIL KERSTAN. (DECEASED) VALUED AT TWENTY SIX MILLION, NINE HUNDRED AND FIFTY ONE THOUSAND, TWO HUNDRED AND FIFTY THREE UNITED STATES DOLLAR ($26, 951,253:00).
This is in reference to your letter of yesterday and sequel to your inquiry on Estate Duty Settlement/Inheritance Tax Assessment in respect of the Estate of Mr. Manfred Emil Kerstan. (Deceased) and following careful appraisal of the Estate, be advised as follows:
Tax rates and interest
After deducting allowable debts, funeral expenses and exemptions, the net value will be taxed based on the following rates:
Deaths occurring on or after 28 Feb 1996 Tax Rates
For every US Dollar of the first $12 Million or its equivalent in Dirham 3%
For every US Dollar exceeding $12 Million or its equivalent in Dirham 5%
Interest on Estate Duty
Simple interest is payable on the unpaid Estate duty from the date of death to the date of payment. At any time after the deceased's death, the executor, administrator or the appropriate person may estimate the amount of Estate duty payable and make payment to IAS/IFRS to prevent further interest from accruing.
Interest rates for deaths occurring on or after 01 Jan 2002 to 31 Dec 2007 and further.
* For the first 6 months from date of death 3% per year on the amount of the unpaid Estate duty
* For the subsequent 12 months 6% per year on the amount of the unpaid Estate duty
* From the expiration of 18 months to the date of payment 12% per year on the amount of the unpaid Estate duty (If the Commissioner is satisfied that there was reasonable cause for the delay in payment or furnishing information, he shall reduce the rate to 6% per year)
For deaths occurring on or after 01 Jan 2008, a late penalty shall be added if any estate duty or interest is not paid in full on or before 30 days after the date of the notice of assessment.
Payment Modes:
Electronic Payment Modes
• Internet Banking (Tax payment from Clubs, Trade associations, MCs & Municipal councils)
To pay online, please visit your bank’s website (select Bill Payment) Abu Dhabi Islamic Bank, Mashreqbank, Union National Bank, Noor Bank or RAKBANK.
• ATM (Tax payment from Clubs, Trade associations, MCs & Municipal councils) Pay your tax at Union National Bank or Mashreqbank Automated Teller Machines.
You can pay using ATM if you maintained a bank account with Abu Dhabi Islamic Bank, RAKBANK or Noor Bank. ATM is available 24 hours a day.
When making payment, enter the payment voucher number after selecting the option to make payment at the ATM. The payment voucher is issued together with your Tax Bill if you are not on the GIRO payment plan.
The amount will be deducted immediately from your account and a receipt will be issued via the ATM machine. There is a daily payment limit of up to $25,000:00 subject to the payment limit set by the respective banks.
• Phone Banking Service.
You can pay using the 24 hours Phone-Banking Services if you maintained a bank account with Abu Dhabi Islamic Bank, Mashreqbank, Union National Bank, Noor Bank or RAKBANK and have subscribed to this service. No receipt will be issued for this mode of payment.
When making payment on this mode, you will need to dial a designated telephone number provided by the respective banks and through a selection of codes, make the payment of your taxes. The amount arranged for payment will be deducted immediately from your bank account.
There is a daily payment limit determined by the respective banks. Hence, the daily payment amount you can make via this mode is subject to this limit.
• Cash/ NETS (Stamp duty, Inheritance Tax, Private Lottery Duty, Trust Income Tax) at any of the listed Banks Office Branch to make an over-the-counter payment.
Cheque/Cashier's Order (All Taxes):
Pay with cheque or cashier's order from any bank in The Emirates. Please attach the payment voucher with your cheque payment and write the tax reference number on the back of your cheque so that payment can be updated to the tax account. No receipt will be issued for this mode of payment until the reflection of the money in the nominated IAS-IFRS designated Tax Collector account. For the payment to be credited promptly into the correct Tax Account, please attach the lower portion of the original payment voucher to your cheque/cashier order/Bank Draft. The payment voucher is issued together with your Tax Assessment if you are not on the GIRO payment plan. If you do not have the payment voucher, please quote the Tax/Document Reference Number and Tax Type at the back of your cheque/cashier's order/bank draft. Ensure that your cheque is crossed 'Not Negotiable' and 'Account Payee Only', and made payable to IAS-IFRS.
• Telegraphic Transfer
Payment by telegraphic transfer is only for payments from overseas and the payment modes listed above are not applicable. Please find applicable mode listed below:
If you are not in The Emirates or only maintain an overseas bank account, IAS-IFRS may accept payment by Telegraphic Transfer.
For security reasons, only on inquiry will you be provided with the necessary bank details to give to your bank when making payment.
In addition you will be required to provide the following information: your name, the Tax Reference Number, taxpayer's name and purpose of the payment: for example, Withholding Tax, Individual Income Tax, Inheritance tax, etc., on the remittance advice.
For prompt updating of your payment into your tax account, please send the Notification Funds Transfer Form/Payment Slip to us.
We encourage you to remit in US$ currency in order to avoid not settling the liability in full due to differences in exchange rate of the foreign currency.
There will be a bank processing fee and other agent bank charges imposed when you make a Telegraphic Transfer.
To ensure that the full amount of tax payable is remitted to IAS-IFRS, please instruct your bank that 'Telegraphic Transfer/other agent bank charges to be borne by ‘applicant' instead of the beneficiary. Otherwise, the amount remitted may not be sufficient to cover your outstanding tax liability in full. Enforcement actions may be taken to recover any outstanding tax.
Depending on the currency, country and agent bank used, payment might be received by IAS-IFRS within 3-5 working days. Payment will be posted into your IAS-IFRS tax account within two (2) working days once we receive the payment and the Notification Funds Transfer form.
You may check your latest tax position via our e-Service 'View Account Summary' at myTax Portal.
Sincerely yours,
Ibrahim Amin Bin Al Mustapha.
For: IAS-IFRS Dubai.
