Ireland Italy Double Taxation Agreement
Revenue e-Brief No. 12/2006 15/03/06
Capital Gains Tax and the Ireland-Italy Double Taxation Convention
On 19 September 2005 we published e-Brief No. 26/2005 stating that legal advice was being sought regarding the coverage of Irish Capital Gains Tax (CGT) under the Ireland-Italy Double Taxation Convention. The Convention predated the enactment of the Capital Gains Tax Act 1975.
The e-Brief further stated that pending the receipt of legal advice, Revenue was withdrawing a previously expressed view that CGT was a covered tax under the Convention.
Revenue can now confirm, having considered the legal advice received in the matter, that CGT is not a covered tax under the Convention.
As stated in e-Brief No. 26/2005, the Ireland-Italy Double Taxation Convention is currently being renegotiated. It is hoped that the negotiations will be concluded later in the year. Under the proposed terms of the new Convention, it is intended that CGT will be a covered tax.
Any taxpayers affected by this clarification should contact their Revenue office.