CORPORATION TAX ACT, 1976

Type Act

Publication 1976-03-31

Last updated 1997-11-30

State Repealed superseded text

Text As published

Source Irish Statute Book

articles 188

This is the act as published. Later amendments are not folded into the text below: each one is a separate act in this repository and an entry in this law's history.

2 amending acts · 1997-11-30, TAXES CONSOLIDATION ACT, 1997

Reform history JSON API

123.—(1) If a company—

(a) makes a claim for group relief, or

(b) being a party to a leasing contract, as defined in section 121, claims relief as mentioned in subsection (1) (b) of that section, or

(c) being a member of a partnership, claims any relief which, if section 122 (2) applied in relation to it, it would not be entitled to claim,

and the inspector has reason to believe that any relevant arrangements may exist, or may have existed at any time material to the claim, then at any time after the claim is made he may serve notice in writing on the company requiring it to furnish him, within such time being not less than thirty days from the giving of the notice as he may direct, with—

(i) a declaration in writing stating whether or not any such arrangements exist or existed at any material time, or

(ii) such information as he may reasonably require for the purpose of satisfying himself whether or not any such arrangements exist or existed at any material time, or

(iii) both such a declaration and such information.

(2) In this section “relevant arrangements”, in relation to a claim falling within any of paragraphs (a) to (c) of subsection (1), means such arrangements as are referred to in the enactment which is specified in the corresponding paragraph below, that is to say—

(a) section 120 (1) or (2) or section 113 (3),

(b) section 121 (1) (c), or

(3) In a case falling within paragraph (a) of subsection (1), a notice under that subsection may be served on the surrendering company, within the meaning of section 107, instead of or as well as on the company claiming relief.

(4) In a case falling within paragraph (c) of subsection (1), a notice under that subsection may be served on the partners instead of or as well as on the company, and accordingly may require them, instead of or as well as the company, to furnish the declaration, information or declaration and information concerned.

(5) In this section, section 113 (3) and sections 120 to 122 “arrangements” means arrangements of any kind, whether in writing or not.

124 Exclusion of double allowances, etc.

124.—(1) Relief shall not be given more than once in respect of the same amount, whether by giving group relief and by giving some other relief (in any accounting period) to the surrendering company or by giving group relief more than once.

(2) In accordance with subsection (1), two or more claimant companies cannot, in respect of any one loss or other amount for which group relief may be given, and whatever their accounting periods corresponding to that of the surrendering company, obtain in all more relief than could be obtained by a single claimant company whose corresponding accounting period coincided with the accounting period of the surrendering company.

(3) If claims for group relief are made by more than one claimant company which relate to the same accounting period of the same surrendering company, and—

(a) all the claims so made are admissible only by virtue of section 119 (2) (3), and

(b) there is a part of the surrendering company's accounting period during which none of those claimant companies is a member of the same group as the surrendering company,

those claimant companies shall not obtain in all more relief than could be obtained by a single claimant company which was not a member of the same group as the surrendering company during that part of the surrendering company's accounting period (but was a member during the remainder of that accounting period).

(4) If claims for group relief are made by a claimant company as respects more than one surrendering company for group relief to be set off against its total profits for any one accounting period, and—

(a) all the claims so made are admissible only by virtue of section 119 (2) (3), and

(b) there is a part of the claimant company's accounting period during which none of the surrendering companies by reference to which the claims are made is a member of the same group as the claimant company,

the claimant company shall not obtain in all more relief to be set off against its profits for the accounting period than it could obtain on a claim as respects a single surrendering company (with unlimited losses and other amounts eligible for relief) which was not a member of the same group as the claimant company during that part of the claimant company's accounting period (but was a member during the remainder of that accounting period).

(5) The provisions of this subsection have effect as respects a claim for group relief made by a company as a member of a consortium, in this subsection referred to as a “consortium claim”—

(a) a consortium claim, and a claim other than a consortium claim, shall not both have effect as respects the loss or other amount of the same accounting period of the same surrendering company, unless each of the two claims is as respects a loss or other amount apportioned under section 119 (2) (a) to a component of that accounting period, and the two components do not overlap,

(b) in subsections (3) and (4) consortium claims shall be disregarded,

and paragraph (a) shall take effect according to the order in which claims are made.

(6) Without prejudice to the provisions of section 304 (6) of the Income Tax Act, 1967 (interpretation), any reference in Part XVI (Annual Allowances for Certain Capital Expenditure) of that Act to an allowance made includes a reference to an allowance which would be made but for the granting of group relief or but for that and but for an insufficiency of profits or other income against which to make it.

125 Claims and adjustments.

125.—(1) A claim for group relief—

(a) need not be for the full amount available,

(b) shall require the consent of the surrendering company notified to the inspector in such form as the Revenue Commissioners may require, and

(c) must be made within two years from the end of the surrendering company's accounting period to which the claim relates.

(2) A claim for group relief by a company as a member of a consortium shall require the consent of each other member of the consortium, notified to the inspector in such form as the Revenue Commissioners may require, in addition to the consent of the surrendering company.

(3) If the inspector discovers that any group relief which has been given is or has become excessive he may make an assessment to corporation tax under Case IV of Schedule D in the amount which ought in his opinion to be charged.

(4) Subsection (3) is without prejudice to the making of an assessment under section 144 (5) (a) (iii) (additional assessments) and to the making of all such other adjustments by way of discharge or repayment of tax or otherwise as may be required where a claimant company has obtained too much relief, or a surrendering company has foregone relief in respect of a corresponding amount.

PART XII Companies' Capital Gains

126 Corporation tax attributable to chargeable gains: recovery from shareholder.

126.—(1) This section applies where a person who is connected with a company resident in the State, on or after the 6th day of April, 1976, receives or becomes entitled to receive in respect of shares in the company any capital distribution from the company, other than a capital distribution representing a reduction of capital, and—

(a) the capital so distributed derives from the disposal after the 5th day of April, 1976, of assets in respect of which a chargeable gain accrues to the company; or

(b) the distribution constitutes such a disposal of assets.

(2) If the corporation tax assessed on the company for the accounting period in which the chargeable gain accrues included any amount in respect of chargeable gains, and any of the tax assessed on the company for that period is not paid within six months from the date when it becomes payable by the company, the said person may by an assessment made within two years from that date be assessed and charged (in the name of the company) to an amount of that corporation tax—

(a) not exceeding the amount or value of the capital distribution which that person has received or became entitled to receive; and

(b) not exceeding a proportion equal to that person's share of the capital distribution made by the company of corporation tax on the amount and at the rate charged in respect of that gain in the assessment in which the said tax was charged.

(3) A person paying any amount of tax under this section shall be entitled to recover a sum equal to that amount from the company.

(4) The provisions of this section are without prejudice to any liability of the person receiving or becoming entitled to receive the capital distribution in respect of a chargeable gain accruing to him by reference to the capital distribution as constituting a disposal of an interest in shares in the company.

(5) In this section “capital distribution” has the same meaning as in paragraph 1 (2) of Schedule 2 to the Capital Gains Tax Act, 1975, and “connected with” shall be construed in accordance with section 157 (connected persons).

127 Company reconstruction or amalgamation: transfer of assets.

127.—(1) Subject to the provisions of this section, where—

(a) any scheme of reconstruction or amalgamation involves the transfer of the whole or part of a company's business to another company, and

(b) at the time of the transfer both companies are resident in the State, and

(c) the first-mentioned company receives no part of the consideration for the transfer (otherwise than by the other company taking over the whole or part of the liabilities of the business),

then so far as relates to corporation tax on chargeable gains the two companies shall be treated as if any assets included in the transfer were acquired by the one company from the other company for a consideration of such amount as would secure that on the disposal by way of transfer neither a gain nor a loss would accrue to the company making the disposal, and for the purposes of Part II of Schedule 1 to the Capital Gains Tax Act, 1975 (assets held on the 6th day of April, 1974), the acquiring company shall be treated as if the respective acquisitions of the assets by the other company had been the acquiring company's acquisition of them.

(2) This section does not apply in relation to an asset which, until the transfer, formed part of trading stock of a trade carried on by the company making the disposal, or in relation to an asset which is acquired as trading stock for the purposes of a trade carried on by the company acquiring the asset.

(3) In this section—

“scheme of reconstruction or amalgamation” means a scheme for the reconstruction of any company or companies or the amalgamation of any two or more companies,

“trading stock” has the meaning given by section 62 (2) of the Income Tax Act, 1967.

128 Interest charged to capital.

128.—Where—

(a) a company incurs expenditure on the construction of any building, structure or works, being expenditure allowable as a deduction under paragraph 3 of Schedule 1 to the Capital Gains Tax Act, 1975 (expenditure: general provisions), in computing a gain accruing to the company on the disposal of the building, structure or work, or of any asset comprising it, and

(b) that expenditure was defrayed out of borrowed money, and

(c) the company charged to capital all or any of the interest on that borrowed money referable to a period or part of a period ending on or before the disposal,

the sums so allowable shall, notwithstanding subparagraph (3) (b) of the said paragraph 3, include the amount of that interest charged to capital.

129 Groups of companies: definitions.

129.—(1) For the purposes of this section and the following sections of this Part—

(a) references to a company, subject to section 138 (7), apply only to a company, as that expression is limited by subsection (2), which is resident in the State;

(b) a principal company, and all its 75 per cent. subsidiaries form a group, and where a principal company is a member of a group as being itself a 75 per cent. subsidiary that group shall comprise all its 75 per cent. subsidiaries;

(d) in applying the definition of “75 per cent. subsidiary” in section 156 (subsidiaries) any share capital of a registered industrial and provident society shall be treated as ordinary share capital; and

(e) “group” and “subsidiary” shall be construed with any necessary modifications where applied to a company incorporated under the law of a country outside the State.

(2) For the purposes referred to in subsection (1) references to a company apply only to—

(a) a company within the meaning of the Companies Act, 1963, and

(b) a company which is constituted under any other Act or a charter or letters patent or (although resident in the State) is formed under the law of a country or territory outside the State, and

(3) For the purposes referred to in subsection (1) a group remains the same group so long as the same company remains the principal company of the group, and if at any time the principal company of a group becomes a 75 per cent. subsidiary of another company the group of which it was the principal company before that time shall be regarded as the same as the group of which that other company, or one of which it is a 75 per cent. subsidiary, is the principal company, and the question whether or not a company has ceased to be a member of a group shall be determined accordingly.

(4) For the purposes referred to in subsection (1) the passing of a resolution or the making of an order, or any other act, for the winding up of a company shall not be regarded as the occasion of that company, or of any 75 per cent. subsidiary of that company, ceasing to be a member of a group of companies.

(5) The following sections of this Part, except in so far as they relate to recovery of tax, shall also have effect in relation to bodies from time to time established by or under any enactment for the carrying on of any industry or part of an industry, or of any undertaking, under national ownership or control as if they were companies within the meaning of those sections, and as if any such bodies charged with related functions and subsidiaries of any of them formed a group, and as if also any two or more such bodies charged at different times with the same or related functions were members of a group:

Provided that this subsection shall have effect subject to any enactment by virtue of which property, rights, liabilities or activities of one such body fall to be treated for corporation tax as those of another.

(6) For the purposes of this Part—

(a) section 35 of the Capital Gains Tax Act, 1975 (close company transferring assets at undervalue), shall not apply where the transfer is a disposal to which section 130 (1) applies;

(b) paragraph 6 of Schedule 1 to the Capital Gains Tax Act, 1975 (part disposals), and all other provisions for apportioning on a part disposal expenditure which is deductible in computing a gain, shall be operated before the operation of, and without regard to,—

(i) section 130 (1),

(ii) any other enactment making an adjustment to secure that neither a gain nor a loss occurs on a disposal;

(i) in the case of a group, none of the members of which is resident in the State, means that group, and

(ii) in the case of a group, two or more members of which are not resident in the State, means the members which are not resident in the State,

and for the purposes of this paragraph “group” shall be construed in accordance with subsections (1) (without paragraph (a)), (3) and (4).

(7) For the purposes of section 36 of the Capital Gains Tax Act, 1975 (non-resident company)—

(a) sections 130 to 133 shall apply in relation to non-resident companies which are members of a non-resident group of companies, as they apply in relation to companies resident in the State which are members of a group of companies,

(b) sections 135 and 137 shall apply as if for any reference therein to a group of companies there were substituted a reference to a non-resident group of companies, and as if references to companies were references to companies not resident in the State.

130 Transfers within a group.

130.—(1) Notwithstanding any provision in the Capital Gains Tax Act, 1975, fixing the amount of the consideration deemed to be received on a disposal or given on an acquisition, where a member of a group of companies disposes of an asset to another member of the group, both members shall, except as provided by subsections (2) and (3), be treated, so far as relates to corporation tax on chargeable gains, as if the asset acquired by the member to whom the disposal is made were acquired for a consideration of such amount as would secure that on the other's disposal neither a gain nor a loss would accrue to that other; but where it is assumed for any purpose that a member of a group of companies has sold or acquired an asset, it shall be assumed also that it was not a sale to or acquisition from another member of the group.

(2) Subsection (1) shall not apply where the disposal is—

(a) a disposal of a debt from a member of a group of companies effected by satisfying the debt or part of it; or

(b) a disposal of redeemable shares in a company on the occasion of their redemption;

and the reference in that subsection to a member of a group of companies disposing of an asset shall not apply to anything which under Schedule 2 to the Capital Gains Tax Act, 1975, is to be treated as a disposal of an interest in shares in a company in consideration for a capital distribution (as defined in paragraph 1 of the said Schedule) from that company, whether or not involving a reduction of capital.

(3) For the purposes of subsection (1), so far as the consideration for the disposal consists of money or money's worth by way of compensation for any kind of damage or injury to assets, or for the destruction or dissipation of assets or for anything which depreciates or might depreciate an asset, the disposal shall be treated as being to the person who, whether as an insurer or otherwise, ultimately bears the burden of furnishing that consideration.

131 Transfers within a group: trading stock.

131.—(1) Where a member of a group of companies acquires an asset as trading stock from another member of the group, and the asset did not form part of the trading stock of any trade carried on by the other member, the member acquiring it shall be treated for purposes of paragraph 15 of Schedule 1 to the Capital Gains Tax Act, 1975 (appropriations to and from stock in trade), as having acquired the asset otherwise than as trading stock and immediately appropriated it for the purposes of the trade as trading stock.

(2) Where a member of a group of companies disposes of an asset to another member of the group and the asset formed part of the trading stock of a trade carried on by the member disposing of it but is acquired by the other member otherwise than as trading stock of a trade carried on by it, the member disposing of the asset shall be treated for purposes of the said paragraph 15 as having immediately before the disposal appropriated the asset for some purpose other than the purpose of use as trading stock.

132 Disposal or acquisition outside a group.

132.—(1) Where a company which is or has been a member of a group of companies disposes of an asset which it acquired from another member of the group at a time when both were members of the group, paragraph 5 of Schedule 1 to the Capital Gains Tax Act, 1975 (restriction of losses by reference to capital allowances), shall apply in relation to any capital allowances made to the other member (so far as not taken into account in relation to a disposal of the asset by that other member), and so on as respects previous transfers of the asset between members of the group (but this shall not be taken as affecting the consideration for which an asset is deemed under section 130 (1) to be acquired).

(2) Part II of Schedule 1 to the Capital Gains Tax Act, 1975, shall apply in relation to a disposal of an asset by a company which is or has been a member of a group of companies, and which acquired the asset from another member of the group at a time when both were members of the group, as if all members of the group for the time being were the same person, and as if the acquisition or provision of the asset by the group, so taken as a single person, had been the acquisition or provision of it by the member disposing of it.

133 Replacement of business assets by members of a group.

133.—For the purposes of section 28 of the Capital Gains Tax Act, 1975 (replacement of business assets), all the trades carried on by members of a group of companies shall be treated as a single trade (unless it is a case of one member of the group acquiring, or acquiring the interest in, the new assets from another or disposing of, or of the interest in, the old assets to another).

134 Tax on company recoverable from other members of a group.

134.—(1) If at any time a chargeable gain accrues to a company which at that time is a member of a group of companies and any of the corporation tax assessed on the company for the accounting period in which the chargeable gain accrues is not paid within six months from the date when it becomes payable by the company, then, if the tax so assessed included any amount in respect of chargeable gains—

(a) a company which was at the time when the gain accrued the principal company of the group; and

(b) any other company which in any part of the period of two years ending with that time was a member of the said group of companies and owned the asset disposed of or any part of it, or where that asset is an interest or right in or over another asset, owned either asset or any part of either asset; may at any time within two years from the time when the tax became payable be assessed and charged (in the name of the company to whom the chargeable gain accrued) to an amount of that corporation tax not exceeding corporation tax on the amount and at the rate charged in respect of that gain in the assessment on the company to which the chargeable gain accrued.

(2) A company paying any amount of tax under subsection (1) shall be entitled to recover a sum of that amount—

(a) from the company to which the chargeable gain accrued, or

(b) if that company is not the company which was the principal company of the group at the time when the chargeable gain accrued, from that principal company,

and a company paying any amount under paragraph (b) shall be entitled to recover a sum of that amount from the company to which the chargeable gain accrued, and so far as it is not so recovered, to recover from any company which is for the time being a member of the group and which has while a member of the group owned the asset disposed of or any part of it (or where that asset is an interest or right in or over another asset, owned either asset or any part of it) such proportion of the amount unrecovered as is just having regard to the value of the asset at the time when the asset, or an interest or right in or over it, was disposed of by that company.

135 Company ceasing to be member of a group.

135.—(1) If a company (in this section called “the chargeable company”) ceases to be a member of a group of companies, this section shall have effect as respects any asset which the chargeable company acquired from another company which was at the time of acquisition a member of that group of companies, but only if the time of acquisition fell—

(a) on or after the 6th day of April, 1974, and

(b) within the period of ten years ending with the time when the company ceases to be a member of the group;

and references in this section to a company ceasing to be a member of a group of companies do not apply to cases where a company ceases to be a member of a group by being wound up or dissolved or in consequence of another member of the group being wound up or dissolved.

(2) Where two or more associated companies cease to be members of the group at the same time, subsection (1) shall not have effect as respects an acquisition by one from another of those associated companies.

(3) If, when the chargeable company ceases to be a member of the group, the chargeable company, or an associated company also leaving the group, owns, otherwise than as trading stock—

(a) the asset, or

(b) property on the acquisition of which a chargeable gain in relation to the asset has been deferred on a replacement of business assets,

the chargeable company shall be treated for all the purposes of the Capital Gains Tax Act, 1975, as if immediately after its acquisition of the asset it had sold, and immediately reacquired, the asset at market value at that time.

(4) For the purposes of this section—

(a) two or more companies are associated companies if, by themselves, they would form a group of companies,

(b) a chargeable gain is deferred on a replacement of business assets if, by one or more claims under section 28 of the Capital Gains Tax Act, 1975, a chargeable gain on the disposal of those assets is treated as not accruing until the new assets, within the meaning of that section, cease to be used for the purposes of a trade carried on by the company making the claim,

(c) an asset acquired by the chargeable company shall be treated as the same as an asset owned at a later time by that company or an associated company if the value of the second asset is derived in whole or in part from the first asset, and in particular where the second asset is a freehold, and the first asset was a leasehold and the lessee has acquired the reversion.

(5) If any of the corporation tax assessed on a company in consequence of this section is not paid within six months from the date when it becomes payable then—

(a) a company which on the said date, or immediately after the chargeable company ceased to be a member of the group, was the principal company of the group, and

(b) a company which owned the asset on the said date, or when the chargeable company ceased to be a member of the group,

may at any time within two years from the time when the tax became payable, be assessed and charged (in the name of the chargeable company) to all or any part of that tax; and a company paying any amount of tax under this subsection shall be entitled to recover a sum of that amount from the chargeable company.

(6) Notwithstanding any limitation on the time for making assessments, an assessment to corporation tax chargeable in consequence of this section may be made at any time within ten years from the time when the chargeable company ceased to be a member of the group, and where under this section the chargeable company is to be treated as having disposed of and reacquired, an asset, all such recomputations of liability in respect of other disposals, and all such adjustments of tax, whether by way of assessment or by way of discharge or repayment of tax, as may be required in consequence of the provisions of this section shall be carried out.

136 Exemption from charge under section 135 in the case of certain mergers.

136.—(1) Subject to the following provisions of this section, section 135 shall not apply in a case where—

(a) as part of a merger, a company (in this section referred to as “company A”) ceases to be a member of a group of companies (in this section referred to as “the A group”); and

(b) it is shown that the merger was carried out for bona fide commercial reasons and that the avoidance of liability to tax was not the main or one of the main purposes of the merger.

(2) In this section “merger” means an arrangement (which in this section includes a series of arrangements)—

(a) whereby one or more companies (in this section referred to as “the acquiring company” or, as the case may be, “the acquiring companies”) none of which is a member of the A group acquires or acquire, otherwise than with a view to their disposal, one or more interests in the whole or part of the business which, before the arrangement took effect, was carried on by company A; and

(b) whereby one or more members of the A group acquires or acquire, otherwise than with a view to their disposal, one or more interests in the whole or part of the business or each of the businesses which, before the arrangement took effect, was carried on either by the acquiring company or acquiring companies or by a company at least 90 per cent. of the ordinary share capital of which was then beneficially owned by two or more of the acquiring companies; and

(3) For the purposes of subsection (2), a member of a group of companies shall be treated as carrying on as one business the activities of that group.

(4) The conditions referred to in subsection (2) (c) are—

(a) that not less than 25 per cent. by value of each of the interests acquired as mentioned in paragraphs (a) and (b) of subsection (2) consists of a holding of ordinary share capital, and the remainder of the interest, or as the case may be of each of the interests, acquired as mentioned in the said paragraph (b) consists of a holding of share capital (of any description) or debentures or both; and

(b) that the value or, as the case may be, the aggregate value of the interest or interests acquired as mentioned in subsection (2) (a) is substantially the same as the value or, as the case may be, the aggregate value of the interest or interests acquired as mentioned in subsection (2) (b); and

(c) that the consideration for the acquisition of the interest or interests acquired by the acquiring company or acquiring companies as mentioned in subsection (2) (a), disregarding any part of that consideration which is small by comparison with the total, either consists of, or is applied in the acquisition of, or consists partly of and as to the balance is applied in the acquisition of, the interest or interests acquired by members of the A group as mentioned in subsection (2) (b);

and for the purposes of this subsection the value of an interest shall be determined as at the date of its acquisition.

(5) Notwithstanding the provisions of section 129 (1) (a), references in this section to a company include references to a company resident outside the State.

137 Shares in subsidiary member of a group.

137.—(1) This section has effect if a company (in this section called “the subsidiary”) ceases to be a member of a group of companies, and on an earlier occasion shares in the subsidiary were disposed of by another company (in this section called “the chargeable company”) which was then a member of that group in the course of an amalgamation or reconstruction in the group, but only if that earlier occasion fell—

(a) on or after the 27th day of November, 1975, and

(b) within the period of ten years ending with the date on which the subsidiary ceases to be a member of the group;

(2) The chargeable company shall be treated, for all the purposes of the Capital Gains Tax Act, 1975, as if immediately before the earlier occasion it had sold, and immediately reacquired, the said shares at market value at that time, and for the purposes of this subsection if the earlier occasion fell on or before the 5th day of April, 1976, it shall be deemed to have fallen on the 6th day of April, 1976.

(3) If, before the subsidiary ceases to be a member of the group, the chargeable company has ceased to exist, or a resolution has been passed, or an order made, for the winding up of the company, or any other act has been done for the like purpose, any corporation tax to which, if the chargeable company had continued in existence, it would have been chargeable in consequence of this section may be assessed and charged (in the name of the chargeable company) on the company which is, at the time when the subsidiary ceases to be a member of the group, the principal company of the group.

(4) If any of the corporation tax assessed on a company in consequence of this section, or in pursuance of subsection (3), is not paid within six months from the date when it becomes payable, then—

(a) a company which is on the said date, or was on the earlier occasion, the principal company of the group, and

(b) any company taking an interest in the subsidiary as part of the amalgamation or reconstruction in the group,

(5) Notwithstanding any limitation on the time for making assessments, an assessment to corporation tax chargeable in consequence of this section may be made at any time within ten years from the time when the subsidiary ceased to be a member of the group and, in relation to any disposal of the property after the earlier occasion, there shall be made all such adjustments of tax, whether by way of assessment or by way of discharge or repayment of tax, as may be required in consequence of the provisions of this section.

(6) For the purposes of this section there is a disposal of shares in the course of an amalgamation or reconstruction in a group of companies if paragraph 4 or 5 of Schedule 2 to the Capital Gains Tax Act, 1975 (company amalgamations), applies to shares in a company so as to equate them with shares in or debentures of another company, and the companies are members of the same group, or become members of the same group as a result of the amalgamation or reconstruction.

(7) Where by virtue of paragraph 5 of the said Schedule 2 shares are to be treated as cancelled and replaced by a new issue, references in this section to a disposal of shares include references to the occasion of their being so treated.

138 Depreciatory transactions in a group.

138.—(1) This section has effect as respects a disposal of shares in, or securities of, a company (in this section referred to as an “ultimate disposal”) if the value of the shares or securities has been materially reduced by a depreciatory transaction effected on or after the 6th day of April, 1974; and for this purpose “depreciatory transaction” means—

(a) any disposal of assets at other than market value by one member of a group of companies to another, or

(b) any other transaction satisfying the conditions of subsection (2):

Provided that a transaction shall not be treated as a depreciatory transaction to the extent that it consists of a payment which is required to be or has been brought into account, for the purposes of corporation tax on chargeable gains, in computing a chargeable gain or allowable loss accruing to the person making the ultimate disposal.

(2) The conditions referred to in subsection (1) (b) are—

(a) that the company, the shares in which, or securities of which, are the subject of the ultimate disposal, or any 75 per cent. subsidiary of that company, was a party to the transaction, and

(b) that the parties to the transaction were or included two or more companies which at the time of the transaction were members of the same group of companies.

(3) Without prejudice to the generality of subsection (1), the cancellation of any shares in or securities of one member of a group of companies under section 72 of the Companies Act, 1963, shall, to the extent that immediately before the cancellation those shares or securities were the property of another member of the group, be taken to be a transaction fulfilling the conditions in subsection (2).

(4) If the person making the ultimate disposal is, or has at any time been, a member of the group of companies referred to in subsection (1) or (2), any allowable loss accruing on the disposal shall be reduced to such extent as appears to the inspector, or on appeal the Appeal Commissioners, or on a rehearing by a judge of the Circuit Court, that judge, to be just and reasonable having regard to the depreciatory transaction:

Provided that if the person making the ultimate disposal is not a member of the said group when he disposes of the shares or securities, no reduction of the loss shall be made by reference to a depreciatory transaction which took place when that person was not a member of the said group.

(5) The inspector or the Appeal Commissioners or the judge of the Circuit Court shall make the decision under subsection (4) on the footing that the allowable loss ought not to reflect any diminution in the value of the company's assets which was attributable to a depreciatory transaction, but allowance may be made for any other transaction on or after the 6th day of April, 1974, which has enhanced the value of the company's assets and depreciated the value of the assets of any other member of the group.

(6) If, under subsection (4), a reduction is made in an allowable loss, any chargeable gain accruing on a disposal of the shares or securities of any other company which was a party to the depreciatory transaction by reference to which the reduction was made, being a disposal not later than ten years after the depreciatory transaction, shall be reduced to such extent as appears to the inspector, or on appeal to the Appeal Commissioners, or on a rehearing by a judge of the Circuit Court, that judge, to be just and reasonable having regard to the effect of the depreciatory transaction on the value of those shares or securities at the time of their disposal:

Provided that the total amount of any one or more reductions in chargeable gains made by reference to a depreciatory transaction shall not exceed the amount of the reductions in allowable losses made by reference to that depreciatory transaction.

All such adjustments, whether by way of discharge or repayment of tax, or otherwise, as are required to give effect to the provisions of this subsection may be made at any time.

(7) For the purposes of this section—

“securities” includes any loan stock or similar security whether secured or unsecured;

references to the disposal of assets include references to any method by which one company which is a member of a group appropriates the goodwill of another member of the group;

a “group of companies” may consist of companies some or all of which are not resident in the State.

(8) References in this section to the disposal of shares or securities include references to the occasion of the making of a claim under section 12 (4) of the Capital Gains Tax Act, 1975, that the value of shares or securities has become negligible, and references to a person making a disposal shall be construed accordingly.

139 Dividend stripping.

139.—(1) The provisions of this section apply where one company (in this section referred to as “the first company”) has a holding in another company (in this section referred to as “the second company”) and the following conditions are fulfilled—

(a) that the holding amounts to, or is an ingredient in a holding amounting to, 10 per cent. of all holdings of the same class in the second company,

(b) that the first company is not a dealing company in relation to the holding,

(c) that a distribution is or has been made on or after the 6th day of April, 1974, to the first company in respect of the holding, and

(d) that the effect of the distribution is that the value of the holding is or has been materially reduced.

(2) Where this section applies in relation to a holding section 138 shall apply in relation to any disposal of any shares or securities comprised in the holding, whether the disposal is by the first company or by any other company to which the holding is transferred by a transfer to which section 130 applies, as if the distribution were a depreciatory transaction and, if the companies concerned are not members of a group of companies, as if they were:

Provided that the distribution shall not be treated as a depreciatory transaction to the extent that it consists of a payment which is required to be or has been brought into account, for the purposes of corporation tax on chargeable gains, in computing a chargeable gain or allowable loss accruing to the person making the ultimate disposal.

(3) This section shall be construed together with section 138.

(4) For the purposes of this section a company is “a dealing company” in relation to a holding if a profit on the sale of the holding would be taken into account in computing the company's trading profits.

(5) References in this section to a holding in a company refer to a holding of shares or securities by virtue of which the holder may receive distributions made by the company, but so that—

(a) a company's holdings of different classes in another company shall be treated as separate holdings, and

(b) holdings of shares or securities which differ in the entitlements or obligations they confer or impose shall be regarded as holdings of different classes.

(6) For the purposes of subsection (1)—

(a) all a company's holdings of the same class in another company are to be treated as ingredients constituting a single holding, and

(b) a company's holding of a particular class shall be treated as an ingredient in a holding amounting to 10 per cent. of all holdings of that class if the aggregate of that holding and other holdings of that class held by connected persons amounts to 10 per cent. of all holdings of that class,

and section 157 shall have effect in relation to paragraph (b) as if in subsection (7) of that section after the words “or exercise control of” in each place where they occur there were inserted the words “or to acquire a holding in”.

PART XIII Application and Adaptation of Enactments

140 Application and adaptation of Income Tax Acts and Capital Gains Tax Act, 1975.

140.—(1) Without prejudice to the general application to corporation tax of the provisions of the Income Tax Acts relating to the computation of income, Part I of the Second Schedule shall have effect for the purpose of applying to corporation tax or otherwise adapting the provisions of those Acts there mentioned.

(2) Without prejudice to the general application to corporation tax of the provisions of the Capital Gains Tax Act, 1975, relating to the computation of chargeable gains, Part II of the Second Schedule shall have effect for the purpose of applying to corporation tax or otherwise adapting the provisions of that Act there mentioned.

(3) The amendments in each Part of the Second Schedule are subject to the provisions of this Act and, in particular, to the provisions of the final paragraph of that Part.

PART XIV Administration

141 Particulars to be supplied by new companies, etc.

141.—(1) Every company which, on or after the 6th day of April, 1976, commences to carry on a trade, profession or business shall, within thirty days from the date of such commencement, deliver to the Revenue Commissioners a statement in writing containing the following particulars—

(a) the name of the company;

(b) the address of its registered office in the State or, in the case of a company which is not resident in the State, the address of its principal place of business in the State;

(c) the name of the secretary or, in the case of a company which is not resident in the State, the name and address of the agent, manager, factor or other representative of the company;

(d) the date of commencement of the trade, profession or business or, in the case of a company which is not resident in the State, the date of commencement of its trade or profession in the State;

(e) the nature of the trade, profession or business; and

(f) the date to which the first accounts relating to such trade, profession or business will be made up:

Provided that this subsection shall not apply to a company which is neither resident nor incorporated in the State unless it commences to carry on a trade or profession in the State.

(2) Where a company fails to deliver a statement which it is required to deliver under this section—

(a) the company shall be liable to a penalty of £500 and, if the failure continues after judgment has been given by the court before which proceedings for the penalty have been commenced, to a further penalty of £50 for each day on which the failure so continues, and

(b) the secretary of the company shall be liable to a separate penalty of £100.

142 Notice of liability to corporation tax.

142.—(1) Every company which is chargeable to corporation tax for any accounting period and which has not made a return of its profits for that accounting period shall, not later than one year after the end of that accounting period, give notice to the inspector that it is so chargeable:

Provided that this subsection shall not impose a duty to give any notice before the 6th day of April, 1976.

(2) Where a company fails to give a notice which it is required to give under this section—

(a) the company shall be liable to a penalty of £500 and, if the failure continues after judgment has been given by the court before which proceedings for the penalty have been commenced, to a further penalty of £50 for each day on which the failure so continues, and

(b) the secretary of the company shall be liable to a separate penalty of £100.

143 Return of profits.

143.—(1) A company may be required by a notice served on it by an inspector or other officer of the Revenue Commissioners to deliver to the officer within the time limited by the notice a return of the profits of the company computed in accordance with this Act—

(a) specifying the income taken into account in computing those profits, with the amount from each source,

(b) giving particulars of all disposals giving rise to chargeable gains or allowable losses under the provisions of the Capital Gains Tax Act, 1975, and this Act and particulars of those chargeable gains or allowable losses, and

(c) giving particulars of all charges on income to be deducted against those profits for the purpose of the assessment to corporation tax.

(2) A notice under this section may require a return of profits arising in any period during which the company was within the charge to corporation tax.

(3) Every return under this section shall include a declaration to the effect that the return is correct and complete.

(4) A return under this section which includes profits which are payments on which the company has borne income tax by deduction shall specify the amount of income tax so borne.

(5) A notice under this section may require the inclusion in the return of particulars of management expenses, capital allowances and balancing charges which have been taken into account in arriving at the profits included in the return.

(6) Paragraph 3 (3) (4) of Schedule 4 to the Capital Gains Tax Act, 1975 (power to demand information about the acquisition of assets), shall apply in relation to a notice under this section as they apply in relation to a notice under any of the provisions of the Income Tax Acts, as applied in relation to capital gains tax by the said paragraph 3.

(7) Section 174 of the Income Tax Act, 1967 (production of accounts and books), shall apply where a company is required to make, or makes, a return under this section relating to profits which consist of or comprise those arising from a trade as it applies where a person is required to make, or makes, a return for the purposes of income tax of the profits or gains arising to him from any trade.

(8)
(a) If any company has been required by notice served under the foregoing provisions of this section to deliver a return and the company fails to comply with the notice—

(i) the company shall be liable to a penalty of £500 except in the case mentioned in paragraph (b) and, if the failure continues after judgment has been given by the court before which proceedings for the penalty have been commenced, to a further penalty of £50 for each day on which the failure so continues, and

(ii) the secretary of the company shall be liable to a separate penalty of £100 except in the case mentioned in paragraph (b).

(b) Where any such failure as is mentioned in paragraph (a) continues after the expiration of one year beginning with the date on which the notice was served the first of the penalties mentioned in the said paragraph for which the company is liable shall be £1,000, and the secretary of the company shall be liable to a separate penalty of £200.

(9) Where a company fraudulently or negligently—

(a) delivers an incorrect return under the provisions of this section, or

(b) makes any incorrect return, statement or declaration in connection with any claim for any allowance, deduction or relief in respect of corporation tax, or

(c) submits to an inspector, the Revenue Commissioners or the Appeal Commissioners any incorrect accounts in connection with the ascertainment of the company's liability to corporation tax,

the company shall be liable to a penalty of—

(i) £500, or, in the case of fraud, £1,000, and

(ii) the amount, or, in the case of fraud, twice the amount, of the difference specified in subsection (10), and

the secretary of the company shall be liable to a separate penalty of £100, or, in the case of fraud, £200.

(10) The difference referred to in subsection (9) is the difference between—

(a) the amount of corporation tax payable by the said company for the accounting period or accounting periods comprising the period to which the return, statement, declaration or accounts relate, and

(b) the amount which would have been the amount so payable if the return, statement, declaration or accounts had been correct.

(11) The provisions of section 501 (3) of the Income Tax Act, 1967 (failure to correct an error not made fraudulently or negligently), shall apply for the purposes of this section as they apply for the purposes of the said section 501.

(12)
(a) Section 191 of the Income Tax Act, 1967 (error or mistake), shall apply in relation to corporation tax as it applies in relation to income tax under Schedule D.

(b) Any return under this Act shall be in such form as the Revenue Commissioners prescribe.

144 Assessment of corporation tax.

144.—(1) Assessments to corporation tax shall be made by an inspector.

(2) Where a company on whose profits the tax is to be assessed is resident in the State the tax shall be assessed on the company, and where a company on whose profits the tax is to be assessed is not resident in the State the tax shall be assessed on the company in the name of any agent, manager, factor or other representative of the company.

(3) The inspector shall give notice to the company assessed, or, in the case of a company which is not resident in the State, to the agent, manager, factor or other representative of the company assessed, of every assessment made by him.

(4) If—

(a) a company makes default in the delivery of a statement in respect of corporation tax, or

(b) the inspector is not satisfied with a statement which has been delivered, or has received any information as to its insufficiency,

the inspector shall make an assessment on the company concerned in such sum as, according to the best of the inspector's judgment, ought to be charged on that company.

(5)
(a) If an inspector discovers—

(i) that any profits which ought to have been assessed to corporation tax have not been assessed, or

(ii) that an assessment to corporation tax is or has become insufficient, or

(iii) that any relief which has been given is or has become excessive,

the inspector shall make an assessment in the amount, or the further amount, which ought in his opinion to be charged.

(b) Subject to any provision allowing a longer period in any class of case, no assessment to corporation tax shall be made more than ten years after the end of the accounting period to which it relates:

Provided that in a case in which any form of fraud or neglect has been committed by or on behalf of any company in connection with or in relation to corporation tax, an assessment may be made on that company at any time for any accounting period for which, by reason of the fraud or neglect, corporation tax would otherwise be lost to the Exchequer.

(c) An objection to the making of any assessment on the ground that the time limited for the making thereof has expired shall only be made on appeal from the assessment.

(d) In this subsection “neglect” means negligence or a failure to give any notice, to make any return, statement or declaration, or to produce or furnish any list, document or other information required by or under the enactments relating to corporation tax:

Provided that a company shall be deemed not to have failed to do anything required to be done within a limited time if it did it within such further time, if any, as the Revenue Commissioners or officer concerned may have allowed; and where a company had a reasonable excuse for not doing anything required to be done, it shall be deemed not to have failed to do it if it did it without unreasonable delay after the excuse had ceased.

145 Collection of corporation tax.

145.—(1) The Collector-General shall collect and levy the tax from time to time charged on all assessments to corporation tax of which particulars have been transmitted to him under section 187 (1) of the Income Tax Act, 1967, as applied for the purposes of corporation tax by section 147.

(2) All such powers as are exercisable with respect to the collecting and levying of sums of income tax under Schedule D of the Income Tax Act, 1967, of which particulars are transmitted under section 187 (1) of that Act shall extend with respect to sums of corporation tax of which particulars are transmitted under that section as applied by section 147.

(3) Section 550 of the Income Tax Act, 1967 (interest on overdue tax), shall apply for the purposes of corporation tax as it applies for the purposes of income tax subject to the inclusion in subsection (1) thereof of a reference to section 6 (4) (general scheme of corporation tax) of this Act for the reference to section 477 of the Income Tax Act, 1967 (time for payment of tax), and section 28 of the Finance Act, 1975 (interest on unpaid taxes), shall apply to interest which, under the said section 550 as applied by this section, is chargeable in respect of corporation tax.

(4)
(a) In this subsection “neglect” has the same meaning as in section 144 (5) (d).

(b) Where, for any accounting period, an assessment is made for the purpose of recovering an undercharge to corporation tax which is attributable to the fraud or neglect of any person, the amount of tax undercharged shall carry interest at the rate of 1·5 per cent. for each month or part of a month from the date or dates on which the tax undercharged for that accounting period would have been payable, if it had been included in an assessment made on the expiration of six months from the end of that accounting period, to the date of payment of the tax undercharged.

(c) Subject to paragraph (e), section 550 (1) (2) of the Income Tax Act, 1967, shall not apply to tax carrying interest under this subsection.

(d) Subsections (3), (4) and (5) of section 550 of the Income Tax Act, 1967, shall apply to interest chargeable under this subsection as they apply to interest chargeable under the said section 550.

(e) Where an assessment of the kind referred to in paragraph (b) is made—

(i) the inspector concerned shall give notice to the person assessed that the tax charged by the assessment will carry interest under this subsection,

(ii) the person assessed may appeal against the assessment on the ground that interest should not be charged under this subsection, and the provisions of this Act relating to appeals against assessments shall apply and have effect in relation to the appeal as they apply in relation to those appeals with any necessary modifications, and

(iii) if, on the appeal, it is determined that the tax charged by the assessment should not carry interest under this subsection, section 550 (1) (2) of the Income Tax Act, 1967, shall apply to that tax as it applies to tax charged by an assessment to income tax.

(5) The priority attaching to assessed taxes under sections 98 and 285 of the Companies Act, 1963, shall apply to corporation tax.

146 Appeals.

146.—(1) The provisions of Part XXVI of the Income Tax Act, 1967 (Appeals), shall apply for the purposes of corporation tax as they apply for the purposes of income tax and accordingly, in those provisions, any reference to income tax shall be taken as including a reference to corporation tax and any reference to the Income Tax Act, 1967, shall be taken as including a reference to the Corporation Tax Acts.

(2) Where an Appeal Commissioner is interested in his own right or in the right of any other person in any matter under appeal, he shall not take part in, or be present at, the hearing or determination of the appeal.

147 Application of income tax administrative provisions to corporation tax.

147.—(1) The provisions of the Income Tax Acts specified in subsection (2) shall apply in relation to corporation tax as they apply in relation to income tax and accordingly in those provisions—

(a) any reference to income tax shall be taken as including a reference to corporation tax,

(b) any reference to the Income Tax Acts shall be taken as including a reference to the Corporation Tax Acts, and

(2) The provisions of the Income Tax Acts referred to in subsection (1) are sections 164, 165, 166 (2), 187 (1) (3), 188 (1), 190, 212, 339, 491, 498, 505, 506, 507, 514, 515, 516, 518, 519, 521, 536, 537, 538, 539, 541, 542, 543, 547, 549 and 551 (1) of the Income Tax Act, 1967, section 6 of the Finance Act, 1968, section 73 of the Finance Act, 1974, and section 21 of the Finance Act, 1975.

(3) The provisions of the Income Tax Acts specified in subsection (4) shall apply in relation to the recovery of a penalty under the provisions of the Corporation Tax Acts as they apply in relation to the recovery of a penalty under the provisions of Part XXXV of the Income Tax Act, 1967.

(4) The provisions of the Income Tax Acts referred to in subsection (3) are sections 172 (5), 504, 508, 510, 511, 512 and 513 of the Income Tax Act, 1967.

(5) All Commissioners and other persons employed for any purpose in connection with the assessment or collection of corporation tax shall be subject to the same obligations as to secrecy with respect to corporation tax as those persons are subject to with respect to income tax, and any declaration made by any such person as to secrecy with respect to income tax shall be deemed to extend also to secrecy with respect to corporation tax.

148 Time for certain summary proceedings.

148.—Notwithstanding section 10 (4) of the Petty Sessions (Ireland) Act, 1851, summary proceedings under section 516 of the Income Tax Act, 1967 (false statements), as applied in relation to corporation tax or under section 63 (production of books and documents: export sales relief) may be instituted within three years from the date of the offence or incurring of the penalty (as the case may be).

149 Penalties for failure to furnish information and for incorrect information.

149.—(1) Where any person has been required by notice given under or for the purposes of section 27 (change in ownership of company: disallowance of trading losses), section 73 (Shannon relief: delivery of statements), section 123 (information as to arrangements for transferring relief) or Part X (Close Companies), to furnish any information or particulars and he fails to comply with the notice he shall be liable, subject to subsection (3), to a penalty of £100 and, if the failure continues after judgment has been given by the court before which proceedings for the penalty have been commenced, to a further penalty of £10 for each day on which the failure so continues.

(2) Where a person fraudulently or negligently furnishes any incorrect information or particulars of a kind mentioned in Part X, section 27, 73, 123 or 151, he shall be liable, subject to subsection (4), to a penalty of £100, or, in the case of fraud, £250.

(3) Where the person mentioned in subsection (1) is a company, it shall be liable to—

(a) a penalty of £500, and, if the failure continues after judgment has been given by the court before which proceedings for the penalty have been commenced, to a further penalty of £50 for each day on which the failure so continues, and

(b) the secretary of the company shall be liable to a separate penalty of £100.

(4) Where the person mentioned in subsection (2) is a company, it shall be liable to—

(a) a penalty of £500, or, in the case of fraud, £1,000, and

(b) the secretary of the company shall be liable to a separate penalty of £100, or, in the case of fraud, £200.

(5) The provisions of section 501 (3) of the Income Tax Act, 1967, shall apply for the purposes of this section as they apply for the purposes of the said section 501.

150 Postponement of payment of tax to be permitted in certain cases.

150.—(1) Where—

(a) for any accounting period the profits of a company consist of or include income from a trade of dealing in or developing land in the course of which the company disposes of the full interest acquired by it in any land, and

(b) in relation to that disposal the conditions specified in paragraphs (b) to (e) of section 23 (1) of the Finance (Miscellaneous Provisions) Act, 1968 (postponement of payment of tax to be permitted in certain cases), are satisfied, and

(c) at the time when any amount of corporation tax charged by an assessment for that accounting period would, but for this section, become due and payable (otherwise than by virtue of section 419 of the Income Tax Act, 1967 (agreement as to amount of tax not in dispute on an appeal against an assessment), as applied for the purposes of corporation tax)—

(i) the company retains the leasehold interest acquired by it from the person to whom the disposition is made, and

(ii) has not disposed, as regards the whole or any part of the land, of an interest derived from that leasehold interest,

a part of the said amount of corporation tax equal to nine-tenths of so much thereof as would not have been chargeable if no sum had fallen to be taken into account as mentioned in section 23 (1) (d) of the Finance (Miscellaneous Provisions) Act, 1968, shall be payable in nine equal instalments at yearly intervals the first of which is payable on the expiration of twelve months from the date on which, but for this section, the said amount of corporation tax would have been payable.

(2) Where, in a case in which the postponement of payment of any amount of corporation tax has been authorised by subsection (1)—

(a) the company ceases to retain the leasehold interest acquired by it,

(b) the company disposes, as regards the whole or any part of the land, of an interest derived from the said leasehold interest, or

the said amount of corporation tax, or, as the case may be, so much of it as has not already become due and payable, shall become due and payable forthwith.

151 Income tax on payments.

151.—(1) In this section “relevant payment” means—

(a) any payment made on or after the 6th day of April, 1976, from which income tax is deductible and to which the provisions of subsections (2) to (5) of section 434 of the Income Tax Act, 1967 (payments not payable out of taxed profits), apply, and

(b) any amount which under section 98 (loans to participators, etc.) is deemed to be an annual payment.

(2) This section shall have effect for the purpose of regulating the time and manner in which companies resident in the State—

(a) are to account for and pay income tax in respect of relevant payments, and

(b) are to be repaid income tax in respect of payments received by them on or after the 6th day of April, 1976.

(3) A company shall for each of its accounting periods make, in accordance with this section, a return to the Collector-General of the relevant payments made by it in that period and of the income tax for which the company is accountable in respect of those payments.

(4) A return for any period for which a return is required to be made under this section shall be made within six months from the end of that period.

(5) Income tax in respect of any payment required to be included in a return under this section shall be due at the time by which the return is to be made, and income tax so due shall be payable by the company without the making of any assessment; but income tax which has become due as aforesaid may be assessed on the company (whether or not it has been paid when the assessment is made) if that tax, or any part of it, is not paid on or before the due date.

(6) If it appears to the inspector that there is a relevant payment which ought to have been and has not been included in a return, or if the inspector is dissatisfied with any return, he may make an assessment on the company to the best of his judgment; and any income tax due under an assessment made by virtue of this subsection shall be treated for the purposes of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.

(7) Where in any accounting period a company receives any payment on which it bears income tax by deduction the company may claim to have the income tax thereon set against any income tax which it is liable to pay under this section in respect of payments made by it in that period, and any such claim shall be included in the return made under subsection (4) for the accounting period in question and (where necessary) income tax paid by the company under this section for that accounting period and before the claim is allowed shall be repaid accordingly.

(8)
(a) Where a claim has been made under subsection (7) no proceedings for collecting tax which would fall to be discharged if the claim were allowed shall be instituted pending the final determination of the claim, but this subsection shall not affect the date when the tax is due and when the claim is finally determined any tax underpaid in consequence of this subsection shall be paid.

(b) Where proceedings are instituted for collecting tax assessed, or interest on tax assessed, under any provision of subsection (5) or (6), effect shall not be given to any claim made after the institution of the proceedings so as to affect or delay the collection or recovery of the tax charged by the assessment or of interest thereon.

(c) References in this subsection to proceedings for the collection of tax include references to proceedings by way of distraint for tax.

(9) Income tax set against other tax under subsection (7) shall be treated as paid or repaid, as the case may be, and the same tax shall not be taken into account both under this subsection and under section 3 (2) (income tax on payments made or received by a company resident in the State).

(10) Where a company makes a relevant payment on a date which does not fall within an accounting period the company shall make a return of that payment within six months from that date, and the income tax for which the company is accountable in respect of that payment shall be due at the time by which the return is to be made.

(11)
(a) All the provisions of the Income Tax Acts as to the time within which an assessment may be made, so far as they refer or relate to the year of assessment for which an assessment is made, or the year to which an assessment relates, shall apply in relation to any assessment under this section notwithstanding that, under this section, the assessment may be said to relate to a period which is not a year of assessment, and the provisions of section 186 of the Income Tax Act, 1967 (additional assessments), as to the circumstances in which an assessment may be made at any time shall apply accordingly on the footing that any such assessment relates to the year of assessment in which the period ends.

(b) Income tax assessed on a company under this section shall, notwithstanding the provisions of section 477 of the Income Tax Act, 1967, be due within one month after the issue of the notice of assessment (unless due earlier under subsection (5) or (10)) subject to any appeal against the assessment, but no such appeal shall affect the date when tax is due under subsection (5) or (10).

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