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Dáil Éireann díospóireacht -
Tuesday, 20 Jun 2000

Vol. 521 No. 4

Written Answers. - Share Dealing.

Thomas P. Broughan

Ceist:

121 Mr. Broughan asked the Minister for Finance the tax position with regard to on-line day trading on the New York stock exchange and NASDAQ by Irish investors using US on-line brokerage firms; and if he will quantify the levels of this increasingly popular trading. [17115/00]

I am advised by the Revenue Commissioners that profits or gains arising to Irish residents who invest on the New York Stock Exchange or NASDAQ via US on-line brokerage firms are chargeable to Irish tax in the same manner as profits or gains arising as a result of investments via an Irish stockbroker. Where the investor is dealing in investments in the course of a trade or an adventure in the nature of a trade, the profits or gains would be chargeable to income tax. Otherwise, the profits or gains would be chargeable to capital gains tax. To determine whether income tax or capital gains tax is the appropriate tax in relation to any particular share transaction, I have been advised by Revenue that it would examine factors such as the number of transactions carried out by each individual investor, the motive of the investor in carrying out the transaction and the circumstances giving rise to the transaction.

Irish resident investors are statutorily obliged under self-assessment to return all profits and gains derived from on-line share dealing outside the State on their annual returns of income and these returns are subject to the usual Revenue audit programmes.

I do not have statistics in respect of the volume of on-line share dealing outside the State by Irish resident investors.

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