Further to the announcement by the Revenue Commissioners on 19 September 2005 of the withdrawal of their previous view that Irish capital gains tax is a tax covered by Art. 2 of the current income tax treaty between Ireland and Italy dated 11 June 1971 (prior to the introduction of capital gains tax in Ireland), the Revenue Commissioners have now confirmed, having considered the legal advice received in the matter, that CGT is not a tax covered by the treaty. The treaty is currently being renegotiated and, under the terms presently proposed, Irish capital gains tax will be a tax covered by the revised treaty.