THE EDITOR, Sir:
BELOW IS the response to Mr. Raymond Goldsmith's open letter to the Honourable Prime Minister, which was published in The Gleaner on November 12, 2002 about his concern regarding transfer tax on death penalty.
"There is exemption from transfer tax where it is shown to the satisfaction of the Commis-sioner of Taxpayer Audit and Assessment that the property is a dwelling house which was:-
Owned by the deceased or by the deceased and his spouse jointly or as tenants in common or by the deceased and any one or more of the following relatives of the deceased, whether jointly or as tenants in common:-
i. Mother or stepmother
ii. Father or stepfather
iii. Son or stepson
iv. Daughter or stepdaughter
v. Sister or brother
vi. Grandfather or grandmother
vii. Grandson or granddaughter, and
Used as the principal residence of each of them.
"Note, however, that the exemption can only be applied to one principal residence.
"Additionally, the Minister of Finance and Planning has a discretionary power where he is satisfied that it is just and equitable so to do to waive transfer tax chargeable under the Act.
"Regarding the estate, which is not eligible for exemption, the tax is calculated on an ad va-lorem basis".
I am, etc.,
GRANVILLE NEWELL
Press Secretary to the
Honourable Prime Minister
