Taxes Consolidation Act 1997 section 579D

Past trustees: liability for tax

Section 579D allows Revenue to recover unpaid capital gains tax from past trustees of a settlement where the current (migrating) trustees have failed to pay tax arising under section 579B on the trust's departure from the State.

• Where a trust becomes non-resident and the capital gains tax due under section 579B is not paid within six months, Revenue may serve a notice on past trustees requiring payment within 30 days.
• Revenue must serve the notice within the specified period, which runs from the self-assessment return filing date for the relevant year to three years after the return is actually delivered to the Collector-General.
• A past trustee may avoid liability if he or she ceased to be a trustee before the end of the relevant period and can show that, at the time of cessation, there was no proposal for the trust to become non-resident.
• Any amount paid by a past trustee under such a notice may be recovered from the migrating trustees, but is not deductible for any tax purpose.