Filing obligations for certain interest free loans

When is an interest free loan reportable?

If you receive a gift in respect of a specified loan, you may have to file a Capital Acquisitions Tax (CAT) return.

A specified loan is any loan, advance or any form of credit that is:

• received by you from a close relative
• received by you from a company of which a close relative is a beneficial owner
• made by a close relative to a company of which you are a beneficial owner
• or
• made between two companies where:
  • you are a beneficial owner of the borrowing company
  • and
  • a close relative is a beneficial owner of the lending company.

Note

A close relative is someone related to you for the purposes of either the Group A or Group B thresholds.

You will have to file a CAT return where:

• you are deemed to have taken a gift for CAT purposes in respect of a specified loan
• no interest was paid on the loan within 6 months of the end of the year of that gift
• and
• the combined balance on the loan and any other specified loan exceeds €335,000 in the year.

What information will you need to provide

If you have to file a CAT return on receipt of a gift in respect of a specified loan, you include:

• the name, address and tax reference number of the person you received the loan from
• and
• the balance outstanding on the loan.