I am advised by Revenue that information relating to the tax treatment of compensation payments from the Equitable Life Payment Scheme is contained in Revenue's Tax and Duty Manual 15-02-09 which may be accessed from the following link;
http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-15/15-02-09.pdf.
In brief, where an individual receives regular annual payments under the Scheme, such payments are chargeable to income tax.
Compensation payments in the form of lump sum payments from the Scheme are regarded as capital sums derived from the policies. Gains accruing on the disposal of the policies by the original policyholders would be exempt from CGT (assuming such disposal was permissible). In the light of this, gains in respect of compensation payments under the Scheme to original policyholders may also be treated as exempt from CGT.