Taxes Consolidation Act 1997 section 628

Value of certain assets to be accepted for purposes of Capital Gains Tax Acts

Section 628 provides that, where exit tax has been charged on an asset in another EU Member State under the Anti-Tax Avoidance Directive, the value used for that charge may be accepted as the acquisition cost of the asset for Irish capital gains tax purposes.

• Where exit tax is charged in another EU Member State on an asset under Article 5(1) of the Directive, the value of the asset established under that State's law for the purpose of the exit tax charge is taken as the acquisition cost for Irish CGT purposes.
• This treatment applies unless the value established in the other Member State does not reflect the market value of the asset.
• Where an exit tax event arises in another Member State under an exit tax regime that complies with the Directive, the tax charged is considered to have been charged by virtue of Article 5(1) of the Directive.
• The effect is to prevent double taxation by ensuring Ireland accepts the other State's exit tax valuation as the base cost for any future Irish CGT computation on the asset.