Capital Gains Tax Act 1975

(7) Where a person receives or becomes entitled to receive in respect of any shares or debentures in a company a provisional allotment of shares in or debentures of the company and he disposes of his rights, paragraph 1 shall apply as if the amount of the consideration for the disposal were a capital distribution received by him from the company in respect of the first-mentioned shares, and as if that person had, instead of disposing of the rights, disposed of an interest in those shares.

(8) If under Part II of Schedule 1 it is to be assumed that, at a time after a person received or became entitled to receive in respect of any shares in or debentures of a company a provisional allotment of shares in or debentures of the company and before the disposal of his rights, the said person sold and immediately re-acquired the shares in respect of which the rights were created, subparagraph (7) shall have effect as if the same assumption applied as respects the rights.

(9) References in this paragraph to a reduction of share capital do not include the paying off of redeemable share capital, and where shares in a company are redeemable by the company otherwise than by the issue of shares or debentures (with or without other consideration) and otherwise than in a liquidation, the shareholder shall be treated as disposing of the shares at the time of the redemption.

Conversion of securities

3.—(1) Paragraph 2 shall apply with any necessary adaptations in relation to the conversion of securities as it applies in relation to the reorganisation or reduction of a company's share capital.

(2) In this paragraph—

“conversion of securities” includes—

(a) a conversion of securities of a company into shares in the company,

(b) a conversion at the option of the holder of the securities converted as an alternative to the redemption of those securities for cash, and

(c) any exchange of securities effected in pursuance of any enactment (including an enactment passed after this Act) which provides for the compulsory acquisition of any shares or securities and the issue of securities or other securities instead;

“security” includes any loan stock or similar security whether of any government or of any public or local authority or of any company and whether secured or unsecured but excluding securities falling within section 19.

Company amalgamations by exchange of shares

4.—(1) Subject to paragraph 5, where a company issues shares or debentures to a person in exchange for shares in or debentures of another company, paragraph 2 shall apply with any necessary adaptations as if the two companies were the same company and the exchange were a reorganisation of its share capital.

(2) This paragraph shall apply only where the company issuing the shares or debentures has or in consequence of the exchange will have control of the other company, or where the first-mentioned company issues the shares or debentures in exchange for shares as the result of a general offer made to members of the other company or any class of them (with or without exceptions for persons connected with the first-mentioned company) the offer being made in the first instance on a condition such that if it were satisfied the first-mentioned company would have control of the other company.

Company reconstruction and amalgamations

5.—(1) Where under any arrangement between a company and the persons holding shares in or debentures of the company or any class of such shares or debentures, being an arrangement entered into for the purposes of or in connection with a scheme of reconstruction or amalgamation, another company issues shares or debentures to those persons in respect of and in proportion to (or as nearly as may be in proportion to) their holdings of the first-mentioned shares or debentures, but the first-mentioned shares or debentures are either retained by those persons or cancelled, then those persons shall be treated as exchanging the first-mentioned shares or debentures for those held by them in consequence of the arrangement (any shares or debentures retained being for this purpose regarded as if they had been cancelled and replaced by a new issue) and accordingly paragraph 4 (other than subparagraph (2)) shall apply to such exchange of shares or debentures.

(2) Subparagraph (1) shall apply in relation to a company which has no share capital as if references to shares in or debentures of a company included references to any interests in the company possessed by members of the company and paragraphs 2 and 4 shall apply accordingly.

(3) In this paragraph “scheme of reconstruction or amalgamation” means a scheme for the reconstruction of any company or companies or the amalgamation of any two or more companies, and references to shares or debentures being retained include their being retained with altered rights or in an altered form whether as the result of reduction, consolidation, division or otherwise.

Transfer of business to a company

6.—(1) This paragraph shall apply for the purposes of this Act where a person who is not a company transfers to a company a business as a going concern, together with the whole of the assets of the business, or together with the whole of those assets other than cash, and the business is so transferred wholly or partly in exchange for shares (in this paragraph referred to as the new assets) issued by the company to the person transferring the business.

(2) The amount determined under subparagraph (4) shall be deducted from the aggregate (in this paragraph referred to as the gain on the old assets) of the net chargeable gains.

(3) For the purpose of computing any chargeable gain accruing on the disposal of any new asset—

(a) the amount determined under subparagraph (4) shall be apportioned between the new assets as a whole, and

(b) the sums allowable as a deduction under paragraph 3 (1) (a) of Schedule 1 shall be reduced by the amount apportioned to the new asset under clause (a),

and if the shares which comprise the new assets are not all of the same class, the apportionment between the shares under clause (a) shall be in accordance with their market values at the time they were acquired by the transferor.

(4) The amount referred to in subparagraphs (2) and (3) (a) shall be such portion of the gain on the old assets as bears the same proportion to the total of such gains as the cost of the new assets bears to the value of the whole of the consideration received by the transferor in exchange for the business and for the purposes of this subparagraph “the cost of the new assets” means any sums which would be allowable as a deduction under paragraph 3 (1) (a) of Schedule 1 if the new assets were disposed of as a whole in circumstances giving rise to a chargeable gain.

(5) In this paragraph “net chargeable gains” means chargeable gains less allowable losses.

(6) References in this paragraph to the business, in relation to shares or consideration received in exchange for the business, include references to such assets of the business as are referred to in subparagraph (1).

SCHEDULE 3 Leases

Leases of land as wasting assets: restriction of allowable expenditure

1.—(1) A lease of land shall not be a wasting asset until the time when its duration does not exceed fifty years.

(2) If at the beginning of the period of ownership of a lease of land it is subject to a sub-lease not at a rent representing the full value of the land together with any buildings thereon and the value of the lease at the end of the duration of the sub-lease, estimated as at the beginning of the period of ownership, exceeds the expenditure allowable under paragraph 3 (1) (a) of Schedule 1 in computing the gain accruing on a disposal of the lease, the lease shall not be a wasting asset until the end of the duration of the sub-lease.

(3) In the case of a wasting asset which is a lease of land, the rate at which expenditure is assumed to be written off shall, instead of being a uniform rate as provided by paragraph 9 of Schedule 1, be a rate fixed in accordance with the Table to this paragraph.

(4) Accordingly, for the purposes of the computation under Schedule 1 of the gain accruing on a disposal of a lease, and where—

(a) the percentage derived from the Table for the duration of the lease at the beginning of the period of ownership is P (1),

(b) the percentage so derived for the duration of the lease at the time when any item of expenditure attributable to the lease under paragraph 3 (1) (b) of Schedule 1 is first reflected in the nature of the lease is P(2), and

(c) the percentage so derived for the duration of the lease at the time of the disposal is P(3),

then—

(i) there shall be excluded from the expenditure attributable to the lease under the said paragraph 3 (1) (a) a fraction equal to , and

(ii) there shall be excluded from any item of expenditure attributable to the lease under the said paragraph 3 (1) (b) a fraction equal to .

(5) This paragraph applies notwithstanding that the period of ownership of the lease is a period exceeding fifty years and, accordingly, no expenditure shall be written off under this paragraph in respect of any period earlier than the time when the lease becomes a wasting asset.

(6) Paragraph 10 of Schedule 1 shall apply in relation to this paragraph as it applies in relation to paragraph 9 of that Schedule.

TABLE

Years	Percentage	Years	Percentage
50 (or more)	1000	25	811
49	997	24	796
48	993	23	781
47	989	22	764
46	985	21	746
45	981	20	728
44	976	19	708
43	971	18	687
42	966	17	665
41	960	16	641
40	955	15	616
39	948	14	590
38	942	13	562
37	935	12	532
36	928	11	500
35	920	10	467
34	912	9	432
33	903	8	394
32	894	7	354
31	884	6	312
30	873	5	267
29	862	4	220
28	851	3	170
27	838	2	116
26	825	1	60
		0	00

If the duration of the lease is not an exact number of years the percentage to be derived from the Table above shall be the percentage for the whole number of years plus one-twelfth of the difference between that and the percentage for the next higher number of years for each odd month counting an odd 14 days or more as one month.

Premiums for leases

2.—(1) Subject to this Schedule where the payment of a premium is required under a lease of land, or otherwise under the terms subject to which a lease of land is granted, there is a part disposal of the freehold or other asset out of which the lease is granted.

(2) In applying paragraph 6 of Schedule 1 to such a part disposal, the property which remains undisposed of includes a right to any rent or other payments, other than a premium, payable under the lease, and that right shall be valued as at the time of the part disposal.

Payment during currency of lease treated as premium

3.—(1) Where, under the terms subject to which a lease of land is granted, a sum becomes payable by the lessee in lieu of the whole or part of the rent for any period, or as consideration for the surrender of the lease, the lease shall be deemed for the purposes of this Schedule to have required the payment of a premium to the lessor (in addition to any other premium) of the amount of that sum for the period in relation to which the sum is payable.

(2) Where, as consideration for the variation or waiver of any of the terms of a lease of land, a sum becomes payable by the lessee otherwise than by way of rent, the lease shall be deemed for the purposes of this Schedule to have required the payment of a premium to the lessor (in addition to any other premium) of the amount of that sum for the period from the time when the variation or waiver takes effect to the time when it ceases to have effect.

(3) If under subparagraph (1) or (2) a premium is deemed to have been received by the lessor, otherwise than as consideration for the surrender of the lease, then—

(a) subject to clause (b), both the lessor and the lessee shall be treated as if that premium were, or were part of, the consideration for the grant of the lease due at the time when the lease was granted, but

(b) if the lessor is a lessee under a lease the duration of which does not exceed fifty years, this Schedule shall apply as if—

(i) the said premium had been given by way of consideration for the grant of the part of the sub-lease covered by the period in respect of which the premium is deemed to have been paid, and

(ii) that consideration were expenditure incurred by the sub-lessee and attributable to the said part of the sub-lease under paragraph 3 (1) (b) of Schedule 1.

(4) Where subparagraph (3) (a) applies, the gain accruing to the lessor on the disposal by way of grant of the lease shall be recomputed and any necessary adjustments of tax, whether by way of assessment for the year in which the premium is deemed to have been received or by way of discharge or repayment of tax, made accordingly.

(5) Where under subparagraph (1) a premium is deemed to have been received as consideration for the surrender of a lease, that premium shall be regarded as consideration for a separate transaction consisting of the disposal by the lessor of his interest in the lease.

(6) Subparagraph (2) shall apply in relation to a transaction not at arm's length, and in particular in relation to a transaction entered into gratuitously, as if such sum had become payable by the tenant otherwise than by way of rent as might have been required of him if the transaction had been at arm's length.

Sub-leases out of short leases

4.—(1) This paragraph applies in relation to a lease which is a wasting asset.

(2) In the computation under Schedule 1 of the gain accruing on the part disposal of a lease by way of the grant of a sub-lease for a premium (in this paragraph referred to as the actual premium), the expenditure attributable to the lease under clauses (a) and (b) of paragraph 3 (1) of Schedule 1 shall be apportioned in accordance with this paragraph, and paragraph 6 of Schedule 1 shall not apply.

(3) Out of each item of the expenditure attributable to the lease under the said clauses (a) and (b) there shall be apportioned to the part disposal—

(a) if the amount of the actual premium is not less than the amount which would be obtainable by way of premium for the said sub-lease if the rent payable under the sub-lease were the same as the rent payable under the lease (in this paragraph referred to as the full premium), the amount (in this paragraph referred to as the allowable amount) which, under paragraph 1 (3), is to be written off over the period which is the duration of the sub-lease, and

(b) if the amount of the actual premium is less than the full premium, such proportion of the allowable amount as is equal to the proportion which the actual premium bears to the full premium.

(4) If the sub-lease is a sub-lease of part only of the land comprised in the lease, this paragraph shall apply only in relation to a proportion of the expenditure attributable to the lease under the said clauses (a) and (b) which is the same as the proportion which the value of the land comprised in the sub-lease at the time when the sub-lease is granted bears to the value of that and the other land comprised in the lease at the said time; and the remainder of that expenditure shall be apportioned to the other land.

Exclusion of premiums taxed under Case V of Schedule D

5.—(1) Where by reference to any premium income tax has become chargeable under section 83 of the Income Tax Act, 1967 (treatment of premiums, etc., as rent), on any amount, that amount shall be excluded from the consideration brought into account in the computation under Schedule 1 of a gain accruing on a disposal of the interest in respect of which income tax becomes so chargeable, except where, in an apportionment under paragraph 6 of the said Schedule, the value of the consideration is taken into account in the aggregate of the said value and the market value of the property which remains undisposed of.

(2) Where by reference to any premium in respect of a sub-lease granted out of a lease the duration of which (that is, of the lease) does not, at the time of granting the lease, exceed fifty years, income tax has become chargeable under the said section 83 on any amount, that amount shall be deducted from any gain accruing on the disposal for which the premium is consideration as computed in accordance with the provisions of this Act apart from this subparagraph, but not so as to convert the gain into a loss, or to increase any loss.

(3) Where income tax has become chargeable under section 85 of the Income Tax Act, 1967 (sale of land with right of reconveyance), on any amount, that amount shall be excluded from the consideration brought into account in the computation under Schedule 1 of a gain accruing on the disposal of the estate or interest in respect of which income tax becomes so chargeable, except where, in an apportionment made under paragraph 6 of the said Schedule, the value of the consideration is taken into account in the aggregate of the said value and the market value of the property which remains undisposed of:

Provided that if the part or interest disposed of is the remainder of a lease or a sub-lease out of a lease the duration of which does not exceed fifty years, the foregoing provisions of this subparagraph shall not apply but the said amount shall be deducted from any gain accruing on the disposal as computed in accordance with the provisions of this Act apart from this subparagraph, but not so as to convert the gain into a loss, or to increase any loss.

(4) References in subparagraphs (1) and (2) to a premium include references to a premium deemed to have been received under subsection (3) or (4) of section 83 of the Income Tax Act, 1967 (which correspond to paragraph 3 (1) and (2)).

(5) Paragraph 2 of Schedule 1 shall not be taken as authorising the exclusion of any amount from the consideration for a disposal of assets taken into account in the computation under that Schedule by reference to any amount chargeable to tax under Chapter VI of Part IV of the Income Tax Act, 1967.

Disallowance of premium treated as rent under superior lease

6.—(1) If under section 92 (1) of the Income Tax Act, 1967 (allowance, on the grant of a sub-lease, by reference to premiums etc. paid), a person is to be treated as paying additional rent in consequence of having granted a sub-lease, the amount of any loss accruing to him on the disposal by way of the grant of the sub-lease shall be reduced by the total amount of rent which he is thereby treated as paying over the term of the sub-lease (and without regard to whether relief is thereby effectively given over the term of the sub-lease), but not so as to convert the loss into a gain, or to increase any gain.

(2) Nothing in paragraph 2 of Schedule 1 shall be taken as applying in relation to any amount on which tax is paid under section 84 of the Income Tax Act, 1967 (charge on assignment of lease granted at undervalue).

(3) If any adjustment is made under section 85 (2) (b) of the Income Tax Act, 1967 (adjustment of charge on sale of land with right to reconveyance), on a claim under that paragraph, any necessary adjustment shall be made to give effect to the consequences of the claim on the operation of this paragraph or paragraph 5.

Expenditure by lessee under terms of lease

7.—If under section 83 (2) of the Income Tax Act, 1967 (lessee's expenditure treated as premium), income tax is chargeable on any amount, as being a premium the payment of which is deemed to be required by the lease, the person so chargeable shall be treated for the purposes of the computation of any gain accruing to him on the disposal by way of grant of the lease, and on any subsequent disposal of the asset out of which the lease was granted, as having incurred at the time the lease was granted expenditure of that amount (in addition to any other expenditure) attributable to the asset under paragraph 3 (1) (b) of Schedule 1.

Duration of leases

8.—(1) In ascertaining for the purposes of this Act the duration of a lease of land, the following provisions shall have effect.

(2) Where the terms of the lease include provision for the determination of the lease by notice given by the lessor, the lease shall not be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice given by the lessor.

(3) Where any of the terms of the lease (whether relating to forfeiture or to any other matter) or any other circumstances render it unlikely that the lease will continue beyond a date falling before the expiration of the term of the lease, the lease shall not be treated as having been granted for a term longer than one ending on that date and this subparagraph applies in particular where the lease provides for the rent to be increased after a given date, or for the lessee's obligations to become in any other respect more onerous after a given date, but includes provision for the determination of the lease on that date by notice given by the lessee, and those provisions render it unlikely that the lease will continue beyond that date.

(4) Where the terms of the lease include provision for the extension of the lease beyond a given date by notice given by the lessee, this paragraph shall apply as if the term of the lease extended for as long as it could be extended by the lessee, but subject to any right of the lessor by notice to determine the lease.

(5) The duration of a lease shall be decided, in relation to the grant or any disposal of the lease, by reference to the facts which were known or ascertainable at the time when the lease was acquired or created.

Leases of property other than land

9.—(1) Paragraphs 2, 3, 4 and 8 shall apply in relation to leases of property other than land as they apply to leases of land subject to any necessary modifications.

(2) In the case of a lease of a wasting asset which is movable property, the lease shall be assumed to terminate not later than the end of the life of the wasting asset.

Interpretation

10.—In this Schedule “premium” includes any like sum, whether payable to the intermediate or a superior lessor and for the purposes of this Schedule any sum (other than rent) paid on or in connection with the granting of a tenancy shall be presumed to have been paid by way of premium except in so far as other sufficient consideration for the payment is shown to have been given.

SCHEDULE 4 Administration

Administration, assessment and collection: general

1.—(1) Capital gains tax shall be under the care and management of the Revenue Commissioners.

(2) Assessments under this Act shall be made by the inspectors or such other officers as the Revenue Commissioners shall appoint in that behalf.

(3) The Collector-General for the time being appointed under section 162 of the Income Tax Act, 1967, shall collect and levy capital gains tax from time to time charged in all assessments made under the provisions of this Act of which particulars have been transmitted to him under section 187 of the Income Tax Act, 1967, as applied by paragraph 2, and the further provisions of the said section 162 with regard to the nomination by the Revenue Commissioners of persons to act as the Collector-General or to exercise the powers of the Collector-General shall apply to capital gains tax as they apply to income tax.

Application of income tax administrative provisions

2.—(1) The provisions of the Income Tax Acts relating to the care, management, assessment, collection and recovery of income tax shall, subject to any necessary modifications, apply in relation to capital gains tax as they apply in relation to income tax chargeable under Schedule D.

(2) In particular and without prejudice to the generality of subparagraph (1), the provisions of the said Acts specified in the Table to this paragraph shall, subject to any necessary modifications, apply to capital gains tax.

TABLE

INCOME TAX PROVISIONS APPLIED TO CAPITAL GAINS TAX

Section 76 (5), (6)	(appeal on question of domicile or ordinary residence).
Section 155 (2), (3), (4) and (5)	(powers and functions of the Revenue Commissioners).
Section 165	(prescription of forms).
Sections 181, 182, 184 and 186	(making of assessments and additional assessments, notice of and time limit for assessment and granting of allowances and reliefs).
Section 187	(transmission to Collector of particulars of sums to be collected).
Section 188	(loss or destruction of assessments and other documents).
Section 190	(provision against double assessment).
Section 191	(relief in respect of error or mistake in return).
Section 200	(non-residents: assessment).
Section 201	(assessment of agent and non-resident).
Part IX, Chapter III	(representative assessments) except section 213.
Section 417	(grounds of appeal to be stated).
Section 419	(recovery of tax not in dispute).
Section 432	(making of claims etc. and appeals and rehearings).
Part XXXIII	(collection) except sections 476, 477, 479, 484 and 495.
Section 498	(limit of time for repayment claims).
Section 537	(effect of want of form in assessments and other documents).
Section 538	(exemption of appraisements and valuations from stamp duty).
Section 542	(delivery, service and evidence of notices and forms).
Sections 550 and 551	(interest on overdue tax).
Section 27	(taking by Collector-General of proceedings in bankruptcy).
---	---
Section 20	(charge of interest in cases of fraud or neglect).
---	---
Section 33 (4), (7) and Third Schedule	(activities on the Continental Shelf).
---	---

Returns and information

3.—(1) The provisions of the Income Tax Acts relating to the making or delivery of any return, statement, declaration, list or other document, the furnishing of any particulars, the production of any document, the making of anything available for inspection, the delivery of any account or the making of any representation, shall, subject to any necessary modifications, apply in relation to capital gains tax as they apply in relation to income tax.

(2) In particular and without prejudice to the generality of subparagraph (1), the provisions of the said Acts specified in the Table to this paragraph shall, subject to any necessary modifications, apply in relation to capital gains tax, and sections 500, 501 and 503 of the Income Tax Act, 1967, as applied by this paragraph, shall, for the purposes of this Act, be construed as if in Schedule 15 to the Income Tax Act, 1967, there were included—

(a) in column 1, references to paragraphs 4 to 7 inclusive,

(b) in column 2, a reference to paragraph 8, and

(c) in column 3, a reference to paragraph 11.

(3) A notice under any of the said provisions of the Income Tax Acts, as applied by this paragraph, may require particulars of any assets acquired by the person on whom the notice was served (or if the notice relates to income or chargeable gains of some other person for whom the person who receives the notice is required to make a return under section 170 of the Income Tax Act, 1967, as so applied by this paragraph, of any assets acquired by that other person) in the period specified in the notice, being a period beginning not earlier than the 6th day of April, 1974, but excluding—

(a) any assets exempted by section 19 (Government and other securities) or section 24 (miscellaneous exemptions) or

(b) any assets acquired as trading stock.

(4) The particulars required under this paragraph may include particulars of the person from whom the asset was acquired and of the consideration for the acquisition.

(5) A return of income of a partnership under section 70 of the Income Tax Act, 1967, shall include—

(a) with respect to any disposal of partnership assets during a period to which any part of the return relates, the like particulars as if the partnership were liable to tax on any chargeable gain accruing on the disposal, and

(b) with respect to any acquisition of partnership assets, the particulars required by subparagraph (3).

(6) Where any person has been required by notice or precept given under the provisions of the Income Tax Acts, as applied by this paragraph, or under the provisions of the following paragraphs, to do any act of a kind mentioned in any of the said provisions, and he fails to comply with the notice or precept, or where any person fraudulently or negligently makes, delivers, furnishes or produces any incorrect return, statement, declaration, list, account, particulars or other document (or knowingly makes any false statement or false representation) under any of the said provisions, Part XXXV (penalties and assessments) of the Income Tax Act, 1967, shall apply to that person for the purposes of capital gains tax as they apply in the case of a like failure or act for the purposes of income tax.

TABLE

FURTHER INCOME TAX PROVISIONS APPLIED TO CAPITAL GAINS TAX

Section 94	(returns in relation to leases).
Section 70	(partnership returns).
Section 169	(returns by persons chargeable).
Section 170	(persons acting for incapacitated persons and non-residents).
Section 172	(power to require return).
Section 174	(power to require production of accounts and books).
Part XXXV	(penalties and assessments).
Section 5	(giving notice by person of liability to tax).
---	---

Third Schedule, paragraph 1 (holder of mineral licence).

Returns by issuing houses, stockbrokers, auctioneers, etc.

4.—(1) For the purpose of obtaining particulars of chargeable gains, an inspector may by notice in writing require a return under any of the provisions of this paragraph.

(2) (a) An issuing house or other person carrying on a business of effecting public issues of shares or securities in any company, or placings of shares or securities in any company, either on behalf of the company, or on behalf of holders of blocks of shares or securities which have not previously been the subject of a public issue or placing, may be required to make a return of all such public issues or placings effected by that person in the course of the business in the period specified in the notice requiring the return, giving particulars of the persons to or with whom the shares or securities are issued, allotted or placed, and the number or amount of the shares or securities so obtained by them respectively.

(b) In this subparagraph “shares” includes units in a unit trust.

(3) A person not carrying on such a business may be required to make a return as regards any such issue or placing effected by that person and specified in the notice, giving particulars of the persons to or with whom the shares or securities are issued, allotted, or placed and the number or amount of the shares or securities so obtained by them respectively.

(4) A member of a stock exchange in the State may be required to make a return giving particulars of any transactions effected by him in the course of his business in the period specified in the notice requiring the return and giving particulars of—

(a) the parties to the transactions,

(b) the number or amount of the shares or securities dealt with in the respective transactions, and

(c) the amount or value of the consideration.

(5) A person (other than a member of a stock exchange in the State) who acts as an agent in the State in transactions in shares or securities may be required to make a return giving particulars of any such transactions effected by him in the period specified in the notice and giving particulars of—

(a) the parties to the transactions,

(b) the number or amount of the shares or securities dealt with in the respective transactions, and

(c) the amount or value of the consideration.

(6) An auctioneer, and any person carrying on a trade of dealing in any description of tangible movable property, or of acting as an agent or intermediary in dealings in any description of tangible movable property, may be required to make a return giving particulars of any transactions effected by or through him in which any asset which is tangible movable property is disposed of for a consideration the amount or value of which, in the hands of the recipient, exceeds two thousand pounds.

(7) No person shall be required under this paragraph to include in a return particulars of any transaction effected before the 6th day of April, 1974, or more than three years before the service of the notice requiring him to make the return.

Returns by nominee shareholders

5.—(1) If, for the purpose of obtaining particulars of chargeable gains, any person in whose name any shares of a company are registered is so required by notice in writing by the Revenue Commissioners or by an inspector, he shall state whether or not he is the beneficial owner of those shares and, if not the beneficial owner of those shares or any of them, shall furnish the name and address of the person or persons on whose behalf the shares are registered in his name.

(2) In this paragraph references to shares include references to securities and loan capital.

Returns by party to a settlement

6.—The Revenue Commissioners may by notice in writing require any person, being a party to a settlement, to furnish them within such time as they may direct (not being less than twenty-eight days) with such particulars relating to the settlement as they think necessary for the purposes of this Act.

Returns relating to non-resident companies and trusts

7.—A person holding shares or securities in a company which is not resident or ordinarily resident in the State, or who is beneficially interested or who acts as agent for or on behalf of a person who is beneficially interested in settled property under a settlement the trustees of which are not resident or ordinarily resident in the State, may be required by a notice by the Revenue Commissioners to give such particulars as the Revenue Commissioners may consider are required to determine whether the company or trust falls within section 36 (non-resident companies) or section 37 (non-resident trusts), and whether any chargeable gains have accrued to that company, or to the trustees of that settlement, in respect of which the person to whom the notice is given is liable to capital gains tax under the said section 36 or 37.

Appeals

8.—(1) A person aggrieved by any assessment under this Act made upon him by the inspector or such other officer as is mentioned in paragraph 1 (2) shall be entitled to appeal to the Appeal Commissioners on giving, within twenty-one days after the date of the notice of assessment, notice in writing to the inspector or other officer, and in default of notice of appeal by a person to whom notice of assessment has been given or in case of the neglect or refusal of a person, who has given notice of appeal, to attend before the Appeal Commissioners at the time and place appointed for the purpose of hearing appeals, the assessment made, on him shall be final and conclusive.

(2) The provisions of the Income Tax Acts relating to—

(a) the appointment of times and places for the hearing of appeals;

(b) the giving of notice to each person who has given notice of appeal of the time and place appointed for the hearing of his appeal;

(c) the determination of an appeal by agreement between the appellant or his agent and an inspector of taxes or such other officer as is mentioned in paragraph 1 (2);

(d) the determination of an appeal by the appellant giving notice of his intention not to proceed with the appeal;

(e) the hearing and determination of an appeal by the Appeal Commissioners including the hearing and determination of an appeal by one Appeal Commissioner;

(f) the determination of an appeal through the neglect or refusal of a person who has given notice of appeal to attend before the Appeal Commissioners at the time and place appointed;

(g) the extension of the time for giving notice of appeal, and the readmission of appeals by the Appeal Commissioners;

(h) the rehearing of an appeal by a judge of the Circuit Court and the statement of a case for the opinion of the High Court on a point of law;

(i) the payment of tax in accordance with the determination of the Appeal Commissioners notwithstanding that an appeal is required to be reheard by a judge of the Circuit Court or that a case for the opinion of the High Court on a point of law has been required to be stated or is pending;

(j) the payment of tax which is agreed not to be in dispute in relation to an appeal; and

(k) the procedures for appeal,

shall, with any necessary modifications, apply to an appeal under any of the provisions of this Act which provide for an appeal to the Appeal Commissioners as if the appeal were an appeal against an assessment to income tax.

Regulations with respect to appeals

9.—(1) The Revenue Commissioners may make regulations—

(a) as respects the conduct of appeals against assessments and decisions on claims under this Act,

(b) entitling persons, in addition to those who would be so entitled apart from the regulations, to appear on such appeals,

(c) regulating the time within which such appeals or claims may be brought or made,

(d) where the market value of an asset on a particular date or an apportionment or any other matter may affect the liability to capital gains tax of two or more persons, enabling any such person to have the matter determined by the tribunal having jurisdiction to determine that matter if arising on an appeal against an assessment, and prescribing a procedure by which the matter is not determined differently on different occasions,

(e) authorising an inspector or other officer of the Revenue Commissioners, notwithstanding the obligation as to secrecy imposed by the Income Tax Acts or any other Act, to disclose to a person entitled to appear on such an appeal the market value of an asset as determined by an assessment or decision on a claim, or to disclose to a person whose liability to tax may be affected by the determination of the market value of an asset on a particular date, or an apportionment or any other matter, any decision on the matter made by an inspector or other officer of the Revenue Commissioners.

(2) Regulations under this paragraph may contain such supplemental and incidental provisions as appear to the Revenue Commissioners to be necessary.

(3) Every regulation made under this paragraph shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Married persons

10.—(1) A return under section 172 of the Income Tax Act, 1967 (as applied by this Schedule), as respects chargeable gains accruing to a married woman in a year of assessment, or part of a year of assessment, during which she is a married woman living with her husband may be required either from her or, if her husband is liable under section 13 (1) from him.

(2) Section 194 of the Income Tax Act, 1967 (collection from wife of tax assessed on husband attributable to her income), and section 195 of the said Act (right of husband to disclaim liability for tax on deceased wife's income) shall apply with any necessary modifications in relation to capital gains tax as they apply in relation to income tax.

Disposal of certain assets by non-resident

11.—(1) This paragraph shall apply to assets that are—

(a) land in the State;

(b) minerals in the State or any rights, interests or other assets in relation to mining or minerals or the searching for minerals;

(c) exploration or exploitation rights in a designated area;

(d) shares in a company deriving their value or the greater part of their value directly or indirectly from assets specified in clause (a), (b) or (c) other than shares quoted on a stock exchange; and

(e) goodwill of a trade carried on in the State.

(2) Upon payment of the consideration for acquiring an asset to which this paragraph applies, the person by or through whom any such payment is made shall deduct thereout a sum representing an amount of capital gains tax on one-half of the said payment at the rate of such tax in force at the time the payment is made and the person to whom the payment is made shall allow such deduction upon receipt of the residue of the payment and the person making the deduction shall, on proof of payment to the Revenue Commissioners of the amount so deducted, be acquitted and discharged of so much money as is represented by the deduction as if that sum had been actually paid to the person making the disposal:

Provided that where the person disposing of the asset produces to the person acquiring the asset a certificate issued under subparagraph (6) in relation to the disposal, no such deduction shall be made.

(3) Where any such payment as aforesaid is made by or on be half of any person, that person shall forthwith deliver to the Revenue Commissioners an account of the payment, and of the amount deducted therefrom, and the inspector shall, notwithstanding any other provision of this Act, assess and charge that person to capital gains tax for the year of assessment in which the payment was made on an amount equal to one-half of the payment at the rate specified in section 3 (3).

(4) The inspector may, where, in relation to any such payment as aforesaid, any person has made default in delivering an account required by this paragraph, or where he is not satisfied with the account, estimate the amount of the payment to the best of his judgment and, notwithstanding section 5 (1), assess and charge that person to capital gains tax for the year of assessment in which the payment was made on an amount equal to one-half of the amount so estimated at the rate specified in section 3 (3).

(5) Where the amount of capital gains tax assessed and charged under subparagraph (3) or (4) is paid, appropriate relief shall, on a claim being made in that behalf, be given to the person chargeable in respect of the gain on the disposal, whether by discharge or repayment or otherwise.

(6) A person chargeable to capital gains tax on the disposal of any asset to which this paragraph applies may apply to the inspector for a certificate that tax should not be deducted from the consideration for the disposal of the asset and, if the inspector is satisfied that the person making the application is the person making the disposal and that—

(a) he is ordinarily resident in the State, or

(b) no amount of capital gains tax is payable in respect of the disposal, or

(c) the capital gains tax chargeable for the year of assessment for which he is chargeable in respect of the disposal of the asset and the tax chargeable on any gain accruing in any earlier year of assessment (not being a year ending earlier than the 6th day of April, 1974) on a previous disposal of the asset has been paid,

the inspector shall issue the certificate.

(7) This paragraph shall not apply where the consideration on a disposal does not exceed the sum of fifty thousand pounds:

Provided that if an asset owned at one time by one person, being an asset to which this paragraph would, but for this subparagraph apply, is disposed of by that person in parts—

(a) to the same person, or

(b) to persons who are acting in concert or who are in the terms of section 33 connected persons,

whether on the same or different occasions, the several disposals shall for the purposes of this subparagraph but not for any other purpose be treated as a single disposal.

(8) Notwithstanding section 5 (2), where an amount of capital gains tax is assessed and charged pursuant to this paragraph, such amount shall be due and payable on the day next after the day on which the assessment is made.

(9) In this paragraph “exploration and exploitation rights”, “designated area” and “shares” have the same meanings as in section 4 (8).

(10) This paragraph shall apply only in relation to disposals and acquisitions occurring after the passing of this Act.

Liability of trustees, etc.

12.—(1) Capital gains tax chargeable in respect of chargeable gains accruing to the trustees of a settlement or capital gains tax due from the personal representatives of a deceased person may be assessed and charged on and in the name of any one or more of those trustees or personal representatives.

(2) Subject to section 8 (3), chargeable gains accruing to the trustees of a settlement or to the personal representatives of a deceased person, and capital gains tax chargeable on or in the name of such trustees or personal representatives, shall not be regarded for the purposes of this Act as accruing to, or chargeable on, any other person, nor shall any trustee or personal representative be regarded for the purposes of this Act as an individual.

Conclusiveness of income tax decisions

13.—Any assessment to income tax or decision on a claim under the Income Tax Acts, and any decision on an appeal under the Income Tax Acts against such an assessment or decision, shall be conclusive so far as under section 6 or Schedule 1 or any other provision of this Act liability to tax depends on the provisions of the Income Tax Acts.

Valuation of assets: power to inspect

14.—(1) An inspector or such other officer as is mentioned in paragraph 1 (2) shall be authorised to inspect any property for the purpose of ascertaining its market value and the person having the custody or possession of that property shall permit the inspector or other officer so authorised, on producing if so required evidence of his authority, to inspect it at such reasonable times as the Revenue Commissioners may consider necessary.

(2) Section 515 of the Income Tax Act, 1967, shall apply to an inspector or other officer referred to in subparagraph (1) and to a person acting in the aid of such an inspector or officer as it applies in relation to the persons referred to in paragraphs (a) and (b) of subsection (1) of that section.

Capital gains tax: preferential payment

15.—The priority attaching to assessed taxes under section 4 of the Preferential Payment in Bankruptcy (Ireland) Act, 1889 and sections 98 and 285 of the Companies Act, 1963, shall apply to capital gains tax.

Power to combine returns, etc. with income tax documents

16.—Any return or assessment or other document relating to chargeable gains or capital gains tax may be combined with one relating to income or income tax.

Recovery of tax from shareholder

17.—(1) This paragraph applies where a person who is connected with a company resident in the State receives or becomes entitled to receive in respect of shares in the company any capital distribution from the company, other than a capital distribution representing a reduction of capital, and—

(a) the capital so distributed derives from the disposal of assets in respect of which a chargeable gain accrues to the company, or

(b) the distribution constitutes such a disposal of assets.

(2) If the capital gains tax assessed on the company for the year of assessment in which the chargeable gain accrues included any amount in respect of that chargeable gain, and any of the tax assessed on the company for that year is not paid within six months from the date when it becomes payable by the company, the said person may by an assessment made within two years from that date be assessed and charged (in the name of the company) to an amount of that capital gains tax—

(a) not exceeding the amount or value of the capital distribution which that person has received or became entitled to receive, and

(b) not exceeding a proportion equal to that person's share of the capital distribution made by the company of capital gains tax on the amount of that gain at the rate in force when the gain accrued.

(3) A person paying any amount of tax under this paragraph shall be entitled to recover a sum equal to that amount from the company.

(4) The provisions of this paragraph are without prejudice to any liability of the person receiving or becoming entitled to receive the capital distribution in respect of a chargeable gain accruing to him by reference to the capital distribution as constituting a disposal of an interest in shares in the company.

(5) In this paragraph “capital distribution” has the same meaning as in paragraph 1 of Schedule 2 and a person shall be regarded as connected with a company if that person would be so regarded for the purposes of section 33.

Gifts: recovery of tax from donee

18.—(1) If in any year of assessment a chargeable gain accrues to any person on the disposal of an asset by way of gift and any amount of capital gains tax assessed on that person for that year of assessment is not paid within twelve months from the date when the tax becomes payable, the donee may, by an assessment made not later than two years from the date when the tax became payable, be assessed and charged (in the name of the donor) to capital gains tax on an amount not exceeding the amount of the chargeable gain so accruing, and not exceeding such an amount of chargeable gains as would, if charged at the rate provided in section 3 (3), result in liability to an amount of capital gains tax equal to the said amount of capital gains tax which was not paid by the donor.

(2) Where the gift consists of a new asset, the donee may, in addition to being assessed and charged under subparagraph (1) in respect of the new asset, be assessed and charged as if the chargeable gain on the disposal of the old asset were a chargeable gain on the disposal of the new asset the capital gains tax in respect of which was not paid within twelve months from the date when the tax had become payable.

(3) (a) Where a person on whom capital gains tax is assessed and charged in respect of the disposal of an asset transfers directly or indirectly by way of gift to a donee the whole of the proceeds of the disposal, or, where the asset is a new asset acquired by the use of the proceeds of the disposal of an old asset, the whole of the proceeds of the disposal of the new asset, subparagraphs (1) and (2) shall apply to the amount of capital gains tax so assessed and charged.

(b) Where a person on whom capital gains tax is assessed and charged in respect of the disposal of an asset transfers directly or indirectly by way of gift to a donee part of the proceeds of the disposal, or, where the asset is a new asset acquired by the use of the proceeds of the disposal of an old asset, part of the proceeds of the disposal of the new asset, subparagraphs (1) and (2) shall apply to such part of the amount of capital gains tax so assessed and charged as bears to the whole of such tax the same proportion that the part aforesaid of the proceeds aforesaid bear to the whole of those proceeds.

(4) The donee of a gift paying any amount of tax in pursuance of this paragraph shall, subject to any terms or conditions of the gift, be entitled to recover a sum of that amount from the donor of the gift as a simple contract debt in any court of competent jurisdiction.

(5) References in this paragraph to a donor include, in the case of an individual who has died, references to his personal representatives.

(6) In this paragraph references to a gift include references to any transaction otherwise than by way of a bargain made at arm's length so far as money or money's worth passes under the transaction without full consideration in money or money's worth, and “donor” and “donee” shall be construed accordingly; and this paragraph shall apply in relation to a gift made to two or more donees with any necessary modifications and subject to the proviso that each such donee shall be liable to be assessed and charged in respect only of such part of the amount of capital gains tax payable by the donees by virtue of this paragraph as bears to the whole of such tax the same proportion as the part of the gift made to that donee bears to the whole of the gift.

(7) In this paragraph “old asset” and “new asset” have the same meanings as in section 28.

Miscellaneous

19.—For the purposes of this Schedule, section 94 of the Income Tax Act, 1967, as applied by paragraph 3 (returns and information) shall apply to property or leases of property other than premises as it applies to premises or leases of premises.