Chris Martin: group head

Retail group Musgrave lobbied the Commission on Taxation on tax rules relating to the passing on of shares from generation to generation in family-owned businesses, pointing out that the rules in Ireland are different from those in Britain and Europe.

At present, business relief on families passing on shares stops at the third generation in Ireland. Set up in 1894, the Musgrave group is currently in its fifth generation and going into its sixth.

However, the Commission said "that the capital gains tax relief for family transfers should be continued but limited." In relation to business relief for capital acquisitions tax it said "there was a case on social grounds to support the transfer of smaller businesses. However, the same argument does not apply in the case of larger businesses."

Musgrave had sales of €4.8bn in 2008 but pre-tax profits fell 20% to €75.5m. The group, which is headed by Chris Martin, has forecast a further profit drop this year as the Irish grocery market contracts.