Revenue eBrief No. 82/15 Use of section 615 TCA 1997 to avoid CGT on ultimate disposal of assets
It has come to the attention of Revenue that section 615, Taxes Consolidation Act (TCA) 1997, which provides relief from Capital Gains Tax (CGT) on a transfer of assets under a scheme of reconstruction or amalgamation of companies, is being used, in conjunction with the use of section 617 TCA 1997, which provides relief from CGT on a transfer of assets within a group, as part of a scheme to avoid CGT liabilities on the ultimate disposal of those assets.
Cases, in which section 615 is used as part of a scheme to avoid CGT, may be challenged under section 811 or section 811C TCA 1997, as appropriate, where CGT cannot be imposed under normal CGT rules on the “true” consideration paid on the ultimate disposal of the assets.
Revenue’s views on this avoidance scheme are set out in Section 2.8 of Part 20.01.02 of the Income Tax, Capital Gains Tax, Corporation Tax Manual on the Revenue website.
Source: Revenue Commissioners. www.revenue.ie. Copyright Acknowledged.