Capital Acquisitions Tax Consolidation Act 2003 section 43

Disposition by or to a company

Section 43 provides that where a private company makes a disposition, pays consideration, or receives a gift, inheritance or consideration, the transaction is attributed to the company's beneficial owners (shareholders and certain creditors) rather than to the company itself.

• When a private company makes a disposition or pays consideration, it is treated as made or paid by the beneficial shareholders and long-term creditors, in proportion to the decrease in the market value of their respective interests.
• When a private company receives a gift, inheritance or consideration, it is treated as received by the beneficial shareholders and long-term creditors, in proportion to the increase in the market value of their respective interests.
• Where a beneficial shareholder or creditor is itself a company, the legislation looks through that company to its own ultimate beneficial owners, applying the same proportional attribution.
• Where shares or creditor entitlements are held in a discretionary trust with no ascertainable beneficial owner, the disposition or consideration is attributed to the settlor who created the trust.