Has any one yet offset the loss on Eircom shares against the first Active gain .Went to my local tax office to try and sort out same ,and came away totally confused as I thought it might be a simple process and the Tax Office would be familiar with it .I know it is not due until 31stOct but it not as simple as it seemed to be .Any one had any similiar problems with this process.
rheinie: like yourself and probably thousands others I got free shares in FA and also lost on Eircom. As far as I can recall you paid €3.90 for the eircom shares and later got a few free (4%) and then received €1.335 for the Valentia buyout later. you got Vodaphone shares in lieu of what was left. I could stand corrected on this bit but what I did was divide the total cost of what I paid for eircom into two lots - one eircom (43% ) and one vodaphone (57% )and this gave me the amount I was deemed to have paid for the shares later bought back. Then subtract what you got off Valentia for them and the difference is the loss. Just deduct it from the figures on the reverse of the revenue letter before the taxable figure and then multiply the answer by 20% and thats what you should owe. Thats what I did about a month ago anyway. Turns out I still got that letter but I returned it stating that I had already paid and sending on a copy of the receipt I had received.
See a topic below where the revenue are going to allocate losses from Eircom against the smaller payment in 2003. Small man mugged again if this is the case. Nobody will convince me that the big players when they make a loss use it up again a non taxable profit ie under the €1270 limit. Either there is an exemption under €1270 or there isn't. If there is than why should anyone have to use up losses against a figure thats not taxable anyway. Mugs game paying tax in this environment where they change the rules as it suits.
Yes - previously incurred losses (such as eircom) must be offset against the 2003 FA capital repayment BEFORE the 2003 annual CGT allowance of €1270 can be used. In many cases this will leave little or nothing to offset against the FA takeover payment. This was initially highlighted by Niall Brady of the Sunday Tribune last week based on information posted on the Revenue's website as well as being reiterated several times since including here on AAM.
Does anyone know the 'exact' wording of the capital gains tax rules regarding the exemption. For instance if its written in the rules that the 'first' €1270 is exempt from tax then they cannot put eircom losses in first.I am referring to the smaller payout by first active in 2003 in which the society went to great pains to try and get this payment tax free for their shareholders . They issued extra shares and then bought these shares back in order to try and ease the tax liability on shareholders.And the revenue agreed with this approach . With the attitute the Revenue are taking it would have been easier for FA to just declare a larger dividend and let us pay tax on that without all the ho-ha. To my mind it really is a case of chasing the small man for everything ie most people are not being allowed eircom losses because according to the revenue they have already used them up, but in the case of big punters who might lose thousands on a sinking ship they can claim away knowing that they revenue will allow such losses. and as for that non resident thingy earlier this year when they effectively back dated the rules to suit themselves, Imagine a garda viewing a cctv and spotting two or three parked cars overstaying their allowed time or even parking illegally. Can you imagine the uproar there would be if the gardai issued parking tickets to those drivers two or three weeks later on the bases that they were caught on tv? or maybe a photograph in a newspaper showing a car parked on yellow lines. effectively the revenue backdated the rules.Its petty mindedness to say the least that they are employing such tactics re the eircom losses.
When it all boils down there were two winners from the takeover of First Active. 1) shareholders , who might or might not have deserved the windfall 2) the tax man who deserved F A .
I completed a cgt form in early Oct. and sent off a cheque for what had calculated as correct. I allowed my eircom losses against the payout and then the €1270. Got back a tax receipt few days ago and this morning a CGA form from the tax office. They have allowed the Eircom/Valentia losses.