Revenue Note for Guidance

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Revenue Note for Guidance

579D Past trustees: liability for tax

Summary

Where under section 579B a chargeable gain accrues to trustees of a settlement and the resulting capital gains tax is not paid within 6 months from the time when it became payable, the Revenue Commissioners can seek to recover that tax from certain trustees.

Details

(3) The section has application where on or after 11 February, 1999 a chargeable gain accrues to trustees of a settlement under section 579B and the tax thereby due for the year of assessment concerned has not been paid within 6 months of the date on which it is due and payable.

(4) Where the section applies the Revenue Commissioners may, at any time before the end of the specified period in relation to the year of assessment concerned, serve on certain persons a notice requiring the person to pay the tax outstanding within 30 days.

(1) The specified period in relation to a year of assessment is the period beginning with the date on which the self assessment return was due and ending 3 years after the date on which the return for the chargeable period is delivered to the Collector-General.

(5) The person on whom the Revenue Commissioners may serve a notice is any person who at any time within the relevant period was a trustee of the settlement other that a person who —

  • ceased to be a trustee before the end of the relevant period, and
  • shows that when he or she so ceased, there was no proposal that the trustees might become neither resident nor ordinarily resident in the State.

(2) The relevant period means —

  • where the settlement migrates offshore in the period of 12 months ending on 10 February, 2000, the period beginning on 11 February, 1999 and ending with the date of migration; and
  • in any other case, the period of 12 months ending with the date of migration.

(6) Tax which a person is required by notice to pay —

  • can be recovered by the payer from the offshore trustees;
  • is not allowable as a deduction for any tax purpose; and
  • may be recovered by the Revenue Commissioners from that person as if it was actually tax due by that person.

Relevant Date: Finance Act 2021