Capital Acquisitions Tax Act, 1976
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Market value of certain shares in private non-trading companies. |
17.—(1) The market value of each share in a private non-trading company which (after the taking of the gift or of the inheritance) is, on the date of the gift or on the date of the inheritance, a company controlled by the donee or the successor, shall for the purposes of this Act, be such sum as would have been payable in respect of the share to the owner thereof if the company had been voluntarily wound up and all the assets realised on the date at which the share is to be valued. | |
(2) In this section— | ||
“investment income”, in relation to a private company, means income which, if the company were an individual, would not be earned income within the meaning of section 2 of the Income Tax Act, 1967 ; | ||
“private company” and “company controlled by the donee or the successor” have the meanings assigned to them by section 16; | ||
“private non-trading company” means a private company— | ||
(a) whose income (if any) in the twelve months preceding the date at which a share therein is to be valued consisted wholly or mainly of investment income; and | ||
(b) whose property, on the date referred to in paragraph (a), consisted wholly or mainly of property from which investment income is derived. | ||
(3) Where the assets of such a private non-trading company as is referred to in subsection (1) include a share in another such private non-trading company (hereinafter referred to as the latter company), the market value of such share shall be ascertained on the basis that the latter company is voluntarily wound up and its assets realised on the date on which the share is to be valued. | ||
(4) In determining the market value of the share referred to in subsection (1) or (3), no allowance shall be made for the costs of winding up any company or of realising its assets. | ||
(5) In ascertaining, for the purposes of subsection (1) or (3), the amount which the assets of a company would realise, the assets shall be deemed to realise the amount of their market value as at the date at which the share referred to in subsection (1) or (3) is to be valued. |