Charged CGT for First Active Shares from 4 years ago

I recently did a tax return for my wife & I relating to 2004 tax year.

During 2004, Collector General wrote out to my wife and I stating that they knew we were FA shareholders and included a few calculations for the free shares, deemed disposal etc and looked for €702 each. We both paid this amount.

Now after the tax return (2004) that I submitted in December 2008, we elected to be jointly assessed - we possible were singly assessed in 2004 - they have come back with the following:

Chargeable Gains: €9,554
less: amount not chargeable - Section 601 TCA 1997: €2,540
Net amount chargeable to tax €7,014
Capital Gains TAx thereon €1,402

Net Liability: 1,402
add surcharge for late submission of tax return 140
Total Liability 1,542
Amount already apid to collector general: 702

Balance Due: 840


It just had my name on the letter, can anyone tell me from these figures if they forgot to take my wife's payment into consideration ?

They have given me 30 days to pay !

The whole First Active scenario was a complete mess. The Revenue Commissioners issued similar letters to most FA shareholders in an attempt to collect tax off people who would have had small shareholdings and not bothered to pay the menial amount of tax due on them.

The figures you received do take your wife's payment into consideration. Section 601 is the personal exemption of €1,270 per annum. Multiply it by two to get €2,540.

For the purpose of CGT an individual is always assessed as a single person regardless of their basis of assessment under other tax heads. What date was the assessment issued to you? Did you receive an assessment or was it just a letter?

Most of the calculations Revenue prepared for FA shareholders were incorrect, in fact I think the vast majority of FA people I've come across didn't pay any tax what so ever.

My guess would be that you or Revenue made an error - either when you filled in the form or when Revenue processed the form.

It's a sign of the times that Revenue are issuing threatening letters for €840. Personally I don't it worth you while seeking professional advice for such a small amount of tax. I'd write a letter back informing the Revenue Commissioners that you went by the calculations provided by Revenue back in 2004 etc...

Am I missing something but it does look like they did not take your wifes payment into account if you both paid 702 when asked back in 2004. They are only allowing you one amount of 702 against this recent calculation.

Do you have a receipt from your 2004 payment? If so, I'd write to them and include a copy of the receipt.

jimjim972 said:

... During 2004, Collector General wrote out to my wife and I stating that they knew we were FA shareholders and included a few calculations for the free shares, deemed disposal etc and looked for €702 each. We both paid this amount...

Click to expand...

Chargeable Gain: €9,554
less: Section 601 TCA 1997: €2,540
Net amount chargeable to tax €7,014
CGT €1,402

Net Liability: €1,402
add surcharge for late submission of tax return €140
Total Liability €1,542
Already paid to collector general: €1,404

Balance Due: €138

It appears they have left out the second €702 tax payment from 2004.

If you have the receipt and their calculations from 2004, send them back copies pointing out that its not a late submission, but a re-submission.

That is what worries me, I did send in copies of what I paid !

jimjim972 said:

That is what worries me, I did send in copies of what I paid !

Click to expand...

I agree, it looks like they only toke one payment into account. BTW: It is Revenue you are dealing with, it is not unknown for them to make mistakes....

Yes eventually got through and they could see the mistake. Thanks for help.

Just an update on this, I was away and came back to find a final demand for €128 odd for Capital Gains threatening me etc if I don't pay within 14 days. It appears that although I paid for capital gains tax in 2004, revenue are telling me that because I submitted tax return in 2008 that I have to pay surcharge for late filing eventhough the tax itself was paid. I asked revenue how could one avoid paying a surcharge if I filed the tax return on January 2nd 2005, I apparently would have been liable. ANyone able to shed light on this ? Also now wondering whether our CGT allowance was taken into consideration at the time?