I sold my ETFs, they were bought as a hassle free investment and when Revenue withdrew their guidance, they no longer were that.Just wondering what other investors in these us domiciled etfs are doing now. My position is that I do not have enough information on where they fall. There is no advantage for me to sell them now as I don't have any loss relief to avail of anyway. If there is a big sell off in stocks next year I might use that as an opportunity to exit them and buy investment trusts or normal stocks instead.
There is such an information vacuum with regard to these etfs that I think it would be silly to take drastic action in the next month . Surely some accounting firm could provide bespoke taxation advice with regard to these investments over the next few years anyways
Do you have much cgt to pay or do you have some loss relief to use to reduce down the capital gains?I sold my ETFs, they were bought as a hassle free investment and when Revenue withdrew their guidance, they no longer were that.
I sold other shares afterwards at a loss to offset some of the gains, I had been thinking of cutting my losses on those shares for a while, the CGT reduction helped soften the blow.Do you have much cgt to pay or do you have some loss relief to use to reduce down the capital gains?
Yes a client with a 5m investment portfolio would most likely be assigned the most junior revenue official availableWithout details of the etfs in question and of the status of the investor, it is difficult to say say anything useful about this.
It's possible that the people doing the audit were not fully trained on the intricasies of Etfs
I note that the €5m element of the story was edited into your original post subsequently.Yes a client with a 5m investment portfolio would most likely be assigned the most junior revenue official available
No a retail investor and not a professional investor, but even so,, what has that to do with the tax treatment?An investor with a portfolio of € 5m, which was an addition to the post after I replied, is most probably a qualified investor and exempt from the PRIIP regulations
I'm only coming late to this thread, have only read the current page of posts so I don't know who's been fighting with whom, so I have no dog in this fight...It’s highly likely that the Revenue auditor... didn’t understand the taxation of investment funds, which is a very complex area...
I wouldn't expect any fines or penalties based on the details provided. Were there any ETF disposal in the period? Or an 8 year deemed event (I note the audit covered a 4 year period). If so, what taxes had the client paid? Exit tax or CGT, or income tax for dividends received?Revenue had no questions and no fines or penalties were imposed
Thanks for the update.At the risk of opening up old wounds, I thought it might be helpful to post the following on here.
A client of mine was selected by Revenue for a level 2 compliance intervention/ audit earlier this year.
The period for review was the tax years 2019, 2020, 2021, 2022. The scope of the review was for income tax and capital gains tax.
So one of these years was in scope for the “new regime” for non EU ETFs which came into effect in January 2022.
Direct quote from the Revenue ebrief setting out this “new regime”*
““Prior guidance confirmed that investments in ETFs domiciled in the USA, the EEA or in an OECD member state (other than the USA) with which Ireland has a double taxation treaty, follows precisely the treatment that would apply to share investments generally. That confirmation does not apply to such investments with effect from 1 January 2022.”
Their portfolio which is c€5M consisted almost exclusively of US ETFs which had been filed by their tax adviser under general tax principles.
Revenue had no questions and no fines or penalties were imposed in fact the client actually received a refund.
*regime - noun, a system or ordered way of doing things
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