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Amendment of section 6 (taxable gift) of Principal Act.
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138.—(1) Section 6 of the Principal Act is amended by—
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(a) the substitution of the following subsection for subsection (1):
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“(1) In this Act ‘taxable gift’ means—
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(a) in the case of a gift, other than a gift taken under a discretionary trust, where the disponer is resident or ordinarily resident in the State at the date of the disposition under which the donee takes the gift, the whole of the gift;
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(b) in the case of a gift taken under a discretionary trust where the disponer is resident or ordinarily resident in the State at the date of the disposition under which the donee takes the gift or at the date of the gift or was (in the case of a gift taken after the death of the disponer) so resident or ordinarily resident at the date of that death, the whole of the gift;
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(c) in the case where the donee is resident or ordinarily resident in the State at the date of the gift, the whole of the gift; and
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(d) in any other case, so much of the property of which the gift consists as is situate in the State at the date of the gift.”,
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(b) the substitution of the following subsections for subsection (3):
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“(3) For the purposes of subsection (1), a person who is not domiciled in the State on a particular date shall be treated as not resident and not ordinarily resident in the State on that date unless—
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(a) that date occurs on or after 1 December 2004,
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(b) that person has been resident in the State for the 5 consecutive years of assessment immediately preceding the year of assessment in which that date falls, and
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(c) that person is either resident or ordinarily resident in the State on that date.
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(4) (a) In this subsection—
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‘company’ means a private company within the meaning assigned to it by section 16(2);
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‘company controlled by the donee’ has the same meaning as is assigned to ‘company controlled by the donee or successor’ by section 16(3);
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‘share’ has the meaning assigned to it by section 16(2).
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(b) For the purposes of subsection (1)(d), a proportion of the market value of any share in a private company incorporated outside the State which (after the taking of the gift) is a company controlled by the donee shall be deemed to be a sum situate in the State and shall be the amount determined by the following formula—
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where—
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A is the market value of that share at the date of the gift ascertained under section 16,
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B is the market value of all property in the beneficial ownership of that company which is situate in the State at the date of the gift, and
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C is the total market value of all property in the beneficial ownership of that company at the date of the gift.
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(c) Paragraph (b) shall not apply in a case where the disponer was domiciled outside the State at all times up to and including the date of the gift or, in the case of a gift taken after the death of the disponer, up to and including the date of that death or where the share in question is actually situate in the State at the date of the gift.”.
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(2) Subject to subsection (3), this section shall have effect in relation to gifts taken on or after 1 December 1999.
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(3) Notwithstanding subsection (2), this section shall not have effect in relation to a gift taken under a disposition where the date of the disposition is before 1 December 1999.
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