DAVID CAMPBELL,
Sir, - It would be inequitable and impractical to compensate Eircom shareholders through the income tax system. But capital gains tax in relation to small shareholders should be reviewed in the light of the recent Fine Gael proposals.
There will always be risks as well as rewards in share investing. The tax system should therefore try to increase the reward/risk ratio for small shareholders, by increasing the present CGT exemption limit of £1,000.
In Britain, for example, where there has long been a culture of encouraging small shareholders, the CGT exemption limit is £6,500 Sterling, which means that small profits up to this limit are tax free. - Yours, etc.,
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DAVID CAMPBELL,
Killiney,
Co Dublin.