The latter, IMHO.That leads me to this question, how come investment professionals, wealth managers etc., can access US based ETF's and be so certain that they are treated with CGT, are they just chancing their arm by telling us that they will be treated as CGT because it suits them from a business perspective to interpret the law that way?
Who on earth takes tax advice in relation to a product from people selling that product?
Ok so, what do you mean "treat"?I don't know, where did I say that?
I asked a direct question, what makes them so sure they can treat US based ETF's as CGT?
What makes them so sure CGT will be applied to the ETF rather than the more punitive 40 something percent exit tax.Ok so, what do you mean "treat"?
They're probably not at all sure. Their job here is to market a product, not provide tax advice.What makes them so sure CGT will be applied to the ETF rather than the more punitive 40 something percent exit tax.
Yes, I suspect they're not sure at all. I wonder will there be a lot of upset customer in 10 or 15 years when it comes time to cash out and the their account or the tax man is not as sure about the tax treatment as they were.They're probably not at all sure. Their job here is to market a product, not provide tax advice.
Not the case. There are professionals on this board, as well as others I have spoken to who specifically offer tax advice and have tax specialists as partners, and they will tell you the ETF's in their portfolio's incur CGT at 33% and not the 41% exit tax.Their job here is to market a product, not provide tax advice.
Will they provide a tax opinion, backed by appropriate PI cover, addressed to you personally to this effect?There are professionals on this board, as well as others I have spoken to who specifically offer tax advice and have a tax specialists on the time, and they will tell you the ETF's in their portfolio's incur CGT at 33% and not the 41% exit tax.
Will they provide a tax opinion, backed by appropriate PI cover, addressed to you personally to this effect?
I doubt it...
Yes but what tax - CGT or exit tax?As long as you pay your taxes in the correct manner, the Revenue don't care. The risk is on the advisor.
Not really. Tax advisors are not fools. Where an uncertainty exists in relation to a tax treatment, they advise their customers of that uncertainty, and it is up to the customer in each case to decide what to do. An advisor who sets themselves up to act as a mudguard to indemnify their customers against an inherent risk won't last long in the game.As long as you pay your taxes in the correct manner, the Revenue don't care. The risk is on the advisor.
As we have seen from the clear as mud Revenue note a few years back, the CGT blanket has been removed on US domiciled ETFs and each one has to be viewed on its own merits. So, some will be subject to CGT, others subject to exit tax.Yes but what tax - CGT or exit tax?
I did say "correct manner". My point was referring to clients holding US domiciled ETFs. I have spoken to plenty of people who think there are doing something wrong by holding them. There is nothing wrong with holding them. But if an Irish advisor sold them to you, the advisor could be in trouble if they didn't satisfy the PRIIPS regulations.Not really. Tax advisors are not fools. Where an uncertainty exists in relation to a tax treatment, they advise their customers of that uncertainty, and it is up to the customer in each case to decide what to do. An advisor who sets themselves up to act as a mudguard to indemnify their customers against an inherent risk won't last long in the game.
Thanks for clarifying. Sorry, I misunderstood what you meant by "advisor". You are of course correct on both counts.I did say "correct manner". My point was referring to clients holding US domiciled ETFs. I have spoken to plenty of people who think there are doing something wrong by holding them. There is nothing wrong with holding them. But if an Irish advisor sold them to you, the advisor could be in trouble if they didn't satisfy the PRIIPS regulations.
Yes but what tax - CGT or exit tax?
Discretionary fund managers are exempt from this and I believe this is the angle that some advisors have taken.
No, there’s still guidance in existence. It’s vague, certainly, but it exists.Revenue issued a note a few years back, that US domiciled ETFs fall under CGT. They then removed that guidance, but crucially did not replace it with anything else.
They wouldn’t have to go before a judge.There is no way that Revenue are going to go in front of a judge and argue that you owe exit tax on your US ETF's because they removed guidance that said the exact opposite.
Quality analysis.But they will never pursue you for it.
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