Valuations for Tax Purposes

Part 1 General Principles of Tax Valuations

Chapter 1 Valuation Principles

1.1 Overview

1.2 Open Market Value

1.3 The Concept of Hindsight

1.4 The Best Price

1.5 The Role of a Special Purchaser

1.6 The Information Standard

1.7 HMRC Guidance

Chapter 2 Private Company Shares

2.1 Overview

2.2 Valuation Methods

2.3 Methodologies for Valuing Trading Companies

2.4 Asset Based Valuations

2.5 Discounts for Shares with Future Entitlements

2.6 Valuing Specific Classes of Shares

2.7 Value of Shares Derived from Irish Property

2.8 Revenue Practice on Valuation of Unquoted Shares

2.9 Share Valuations Panel of Experts

2.10 Appeals Against Valuations of Unquoted Shares

Chapter 3 Discounts for Private Company Shares

3.1 Overview

3.2 The Legal/Practical Perspective

3.3 Revenue’s Suggested Minority Discounts

3.4 Marketability/Liquidity Discounts

3.5 Non-trading/Investment Companies

3.6 Discounts for Lack of Voting Rights

Chapter 4 Valuation of Other Asset Classes and Revenue Powers

4.1 Real Property

4.2 Quoted Shares

4.3 Rights or Options to Acquire Assets

4.4 Unincorporated Business and Goodwill

4.5 Foreign Assets

4.6 Agricultural Assets

4.7 General Revenue Power of Valuation

4.8 Obligation of TAC and Court to Set Out Reasons Clearly

4.9 Revenue Code of Practice for Compliance Interventions

Part 2 Analysis by Tax Type

Chapter 5 Income Tax (Employees)

5.1 Overview

5.2 Benefits-in-Kind

5.3 Employee Share Incentive Plans

Chapter 6 Income Tax and Corporation Tax (Business Taxes)

6.1 Overview

6.2 Trading Stock and Work in Progress

6.3 Farming

6.4 Capital Allowances

Chapter 7 Capital Gains Tax

7.1 Overview

7.2 Open Market Value for CGT

7.3 Statutory Rules Relevant to Open Market Value for CGT

7.4 Development Land and Valuations

7.5 Woodlands and Valuations

7.6 Earn-outs/Deferred or Contingent Consideration

7.7 Value of Shares Attributable to Irish Property

Chapter 8 Capital Acquisitions Tax

8.1 Overview

8.2 Valuation Date

8.3 Value of Property for CAT

8.4 Taxable Value of a Gift or Inheritance

8.5 Valuation Issues in the Administration of Estates

8.6 Appeals on Valuation

8.7 Surcharges for Undervaluation of Property

Chapter 9 Stamp Duty

9.1 Overview

9.2 Valuations of Property Chargeable with Stamp Duty

9.3 General Rules for Valuing Property for Stamp Duty

9.4 Consequences of Undervaluation

9.5 Transactions Involving Market Value

9.6 Apportionment

9.7 Periodical Payments

9.8 Shares Deriving Value from Non-residential Immovable Property Situate in the State

9.9 Shares Deriving their Value from Residential Units

Chapter 10 Local Property Tax & Vacant Homes Tax

10.1 Overview

10.2 Liable Person

10.3 Valuation

10.4 Table of Valuation Bands

10.5 Vacant Homes Tax

Chapter 11 Vehicle Registration Tax

11.1 Overview

11.2 Classification of Vehicles

11.3 Basis of VRT Charge

11.4 Valuation of Vehicles: Calculating the OMSP

11.5 Judicial Consideration of OMSP System

Chapter 12 Transfer Pricing

12.1 Overview

12.2 Operation of Transfer Pricing Adjustments

12.3 Documentation and Enquiries

12.4 Penalties

12.5 Compliance

Chapter 13 Domicile Levy

13.1 Overview

13.2 The Amount of the Levy

13.3 The Payment Date of the Levy

13.4 Irish Property

13.5 Market Value

13.6 Anti-Avoidance Provisions

13.7 Practical Considerations

Chapter 14 Vacant Site Levy & Residential Zoned Land Tax

14.1 Vacant Site Levy

14.2 Residential Zoned Land Tax

Part 3 Practical Transactions

Chapter 15 Practical Transactions

15.1 Overview

15.2 Gift of Shares: Interaction of CGT, CAT & SD Valuation Rules

15.3 Multiple Gifts of Shares: Interaction of CGT, CAT and SD

15.4 Gift & Subsequent Sale of Shares: Interaction of CGT & CAT Valuation Rules

15.5 Inheritance of Assets: Impact of Valuation Rules on a Beneficiary of an Estate

15.6 Award of Employment Related Securities under Section 128D: Interaction of Income tax, SD and CGT Valuation Rules