New title offers in-depth look at Ireland’s Capital Gains Tax (Sponsored)

Aug 26, 2020

By Rachel Sherlock, Bloomsbury Professional

Ireland is notable for having one of the highest rates of Capital Gains Tax (CGT) in the OECD, set at 33%. This high rate has remained a thorny issue, to quote former Tánaiste Michael McDowell: “From a political perspective, the recurring question arises as to whether the rate of CGT should be dictated by ideological notions of tax equity, or by reference to pragmatically maximising its sustainable yield which can then be used for socially equitable re-distribution.”

As one of the leading voices in Irish tax, Tom Maguire has long pushed for a major reduction in the CGT rate, saying, “CGT rate was previously 20%, having come down from 40% before that. When the rate dropped to 20%, the related tax yield increased exponentially. Granted that was in pre-financial crisis days so when the earth fell off its axis the rate went north and the Exchequer’s take went south because there were no gains to tax.”

Drawing on his experience in this area, last summer Maguire launched the first edition of his new tax annual, Irish Capital Gains Tax 2019. This extensive title, over 1200 pages, includes commentary on Revenue guidance, the administration of CGT as well as the computational rules and key reliefs and allowances. Topics covered range from the tax treatment of married couples, partnerships, companies and trusts to anti-avoidance.

At the launch of the first edition, McDowell paid tribute to Maguire, describing Irish Capital Gains Tax 2019 as a “huge achievement in terms of expertise, scholarship and industry”.

Now in its second edition, Irish Capital Gains Tax 2020 is set to be published in September. This new edition has been updated to take account of the Finance Act 2019, which includes significant amendments in relation to the Tax Consolidation Act 1997 including exit tax, transfer pricing, and hybrid entities and instruments.

This tax annual, which Maguire himself initiated, joins the other tax annuals, Irish Income Tax and The Taxation of Companies, which Maguire has also updated. Minister for Finance, Paschal Donohoe wrote in the foreword to the Taxation of Companies 2020, stating, “I welcome Tom Maguire as the new author of The Taxation of Companies. His authorship of this leading text on such an important tax for the Irish economy is all the more notable when added to his most recent book on Irish Capital Gains Tax, published by Bloomsbury in 2019, and his authorship of Irish Income Tax (formerly Judge) from 2016. Together, these three publications form a comprehensive analysis of the Taxes Consolidation Act 1997, providing an unprecedented breadth of understanding to readers on the provisions of this ever-evolving legislation.” 

This is in addition to his role as tax partner at Deloitte, leading the firm’s tax technical and tax policy team, as well as being an author of a bi-weekly tax column in the Sunday Business Post. Taken together, these achievements firmly establish Tom Maguire as one of the most prominent figures in the area of Irish Tax.

Irish Capital Gains Tax 2020 by Tom Maguire is due to be released in September 2020. Click here to pre-order now. It will also be added to Bloomsbury Professional Ireland’s online tax service. For more information about this click here.

(This article is sponsored by Bloomsbury Professional Ireland.)