Richard Bruton (Dublin North Central, Fine Gael)
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Question 171: To ask the Minister for Finance if the person to be charged with deciding a residual value in Anglo Irish shares has yet been appointed; and if persons making tax returns are being advised on the way to quantify capital losses on such shares. [10313/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 22 of the Anglo Irish Bank Corporation Act 2009 provides that I shall appoint an Assessor at an appropriate time having regard to the public interest, to determine the fair and reasonable aggregate value of the transferred shares and extinguished rights and the consequent amount of compensation, if any, that may be payable to persons in respect of Anglo shares transferred and rights extinguished under the Act. Work on the process to appoint an Assessor under EU procurement rules is underway in my Department and will be completed soon.

With regard to treatment of Anglo shares in making tax returns, the Revenue Commissioners have published guidance on their website (e-Brief 76/09, dated 3 November 2009) explaining that the transfer of Anglo Irish Bank shares to the Minister for Finance may be considered a disposal to which the capital gains tax "negligible value" rule applies. The result is that, where a claim is made, the shares will be treated as being of negligible value and a loss for the 2009 tax year may be calculated, which is available for set-off in the same way as any other capital loss.

Compensation, if any, arising by virtue of a decision by the Assessor on the residual value of the shares, will be treated for capital gains tax purposes as consideration for disposal at the time of receipt. If a negligible value loss has been claimed, there will be no acquisition cost to set against such compensation. If a negligible value loss has not been claimed, the base cost will be the acquisition cost (and expenses of acquisition) of the shares transferred to the Minister for Finance.