Taxation on distribution from Zamano liquidation

[Raskolnikov]

Hi,

I have a few shares in the Irish listed company, Zamano, who are currently in the process of liquidating their entire business and returning remaining cash to shareholders. I expect that at some point over the next month or so that I should receive that distribution. I am wondering can anyone tell me what will the tax treatment be on that distribution? Will it be treated as an ordinary dividend (subject to marginal rate of income tax), or will it be treated as a return of capital (i.e. subject to capital gains tax).

Here's a link to the most recent statement on their intent to liquidate http://otp.investis.com/Utilities/PDFDownload.aspx?Newsid=930860

According to this bit of the Irish tax code, it sounds like the liquidation of Zamano should be treated as a capital gain (or loss depending on what you paid).

https://www.charteredaccountants.ie/taxsource/1997/en/act/pub/0039/nfg/sec0583-nfg.html

Has anyone any thoughts?

 

[dan rather]

It is a peculiar scenario in that zamano will continue to exist but as an investor of sorts, they will be on the look out to grow their 5 million odd fund in a type Angel investor way