A bit of a long story below, but I am completely lost in these matters, so I would really appreciate your advice on the questions outlined at the end.
I was just over 18 at the time that the Eircom shares were offered to the public. I had no money, and the amount of shares that could be bought were limited, so a relative bought the shares in my name. I was a student at the time. I don't think I had any income in 1999. I would have had a small amount of income in 2000 on which I paid PAYE. I wouldn't have had any income in 2001 (I had a tax-free bursary).
I signed over the Eircom dividend cheques to my relative and signed over the proceeds of the sale of the Eircom shares when it was bought by Valentia. He subsequently gave me the Vodafone shares as a gift.
I do not have much (any) documentation about the Eircom shares or dividends. As I knew nothing about tax at the time, and I didn't consider myself to be the owner of the shares, I did nothing tax-wise regarding the dividends or final buy-out from Valentia. I have also neglected to do anything tax-wise about the Vodafone share dividends. I now need to fill in a Form 12 to deal with the Vodafone shares, but I am wondering if I need to go back as far as the Eircom shares and sort them out too.
My understanding is that no CGT was payable on the buyout by Valentia as there was a net loss, due to drop in share price.
Can you help me with the following questions:
a) Am I correct in saying that there was no CGT to be paid if you bought the shares at the original floating price of €3.90?
b) As the shares were kept until 2000, there was a bonus 39 shares provided. The base cost of these was €0 (they were given for free as a bonus). Is CGT payable on these, or is it taken as an overall investment, and does the loss made on the other shares mean no CGT is payable on these shares?
c) Does anybody have documentation from their Eircom share dividends? Do you know if the dividends were taxed at source, or if they should have been declared for tax purposes (I had no income in 1999 or 2001, but a very small PAYE income in 2000).
d) If the dividend was not taxed at source, could the tax have been written off against the loss in value of the shares?
e) Is there a limit to how far Revenue can go back, i.e., are share dividends from 1999 - 2001 off limits now, or can they still claim the tax from me, fine me for not declaring at the time etc.
BTW, my relative is quite old now and doesn't seem to be able to find the documentation relating to Eircom. I don't want to go the route of telling revenue that he was the real owner of the shares and that if there is a liability, it should be his.
Thanks for your help.
I was just over 18 at the time that the Eircom shares were offered to the public. I had no money, and the amount of shares that could be bought were limited, so a relative bought the shares in my name. I was a student at the time. I don't think I had any income in 1999. I would have had a small amount of income in 2000 on which I paid PAYE. I wouldn't have had any income in 2001 (I had a tax-free bursary).
I signed over the Eircom dividend cheques to my relative and signed over the proceeds of the sale of the Eircom shares when it was bought by Valentia. He subsequently gave me the Vodafone shares as a gift.
I do not have much (any) documentation about the Eircom shares or dividends. As I knew nothing about tax at the time, and I didn't consider myself to be the owner of the shares, I did nothing tax-wise regarding the dividends or final buy-out from Valentia. I have also neglected to do anything tax-wise about the Vodafone share dividends. I now need to fill in a Form 12 to deal with the Vodafone shares, but I am wondering if I need to go back as far as the Eircom shares and sort them out too.
My understanding is that no CGT was payable on the buyout by Valentia as there was a net loss, due to drop in share price.
Can you help me with the following questions:
a) Am I correct in saying that there was no CGT to be paid if you bought the shares at the original floating price of €3.90?
b) As the shares were kept until 2000, there was a bonus 39 shares provided. The base cost of these was €0 (they were given for free as a bonus). Is CGT payable on these, or is it taken as an overall investment, and does the loss made on the other shares mean no CGT is payable on these shares?
c) Does anybody have documentation from their Eircom share dividends? Do you know if the dividends were taxed at source, or if they should have been declared for tax purposes (I had no income in 1999 or 2001, but a very small PAYE income in 2000).
d) If the dividend was not taxed at source, could the tax have been written off against the loss in value of the shares?
e) Is there a limit to how far Revenue can go back, i.e., are share dividends from 1999 - 2001 off limits now, or can they still claim the tax from me, fine me for not declaring at the time etc.
BTW, my relative is quite old now and doesn't seem to be able to find the documentation relating to Eircom. I don't want to go the route of telling revenue that he was the real owner of the shares and that if there is a liability, it should be his.
Thanks for your help.