Capital Acquisitions Tax Act, 1976
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Exemption of certain receipts. |
58.—(1) The following shall not be gifts or inheritances— | |
(a) the receipt by a person of any sum bona fide by way of compensation or damages for any wrong or injury suffered by him in his person, property, reputation or means of livelihood; | ||
(b) the receipt by a person of any sum bona fide by way of compensation or damages for any wrong or injury resulting in the death of any other person; | ||
(c) the receipt by a person of any sum bona fide by way of winnings from betting (including pool betting) or from any lottery, sweepstake or game with prizes; | ||
(d) any benefit arising out of— | ||
(i) the payment to the Official Assignee in Bankruptcy of money which has been provided by, or which represents property provided by, friends of a bankrupt; or | ||
(ii) a remission or abatement of debts by the creditors of a bankrupt, | ||
to enable the bankrupt to fulfil an offer of composition after bankruptcy in accordance with the provisions of section 149 of the Irish Bankrupt and Insolvent Act, 1857; and | ||
(e) any benefit arising out of— | ||
(i) the payment to the Official Assignee in Bankruptcy of money which has been provided by, or which represents property provided by, friends of an arranging debtor; or | ||
(ii) a remission or abatement of debts by the creditors of an arranging debtor, | ||
to enable the debtor to carry out the terms of a proposal made by him under section 345 of the Irish Bankrupt and Insolvent Act, 1857, which has been accepted by his creditors and approved and confirmed by the High Court. | ||
(2) Notwithstanding anything contained in this Act, the receipt in the lifetime of the disponer of money or money's worth— | ||
(a) by— | ||
(i) the spouse or child of the disponer; or | ||
(ii) a person in relation to whom the disponer stands in loco parentis, | ||
for support, maintenance or education; or | ||
(b) by a person who is in relation to the disponer a dependent relative under section 142 of the Income Tax Act, 1967 , for support or maintenance, | ||
shall not be a gift or an inheritance, where the provision of such support, maintenance or education, or such support or maintenance— | ||
(i) is such as would be part of the normal expenditure of a person in the circumstances of the disponer, and | ||
(ii) is reasonable having regard to the financial circumstances of the disponer. |