Finance Act, 1992

• (ii) by the substitution in paragraph (b) of “relevant payments card” and “to which the relevant payments card relates” for “construction payments card” and “to which the sub-contractor's certificate of authorisation relates” respectively,

• (g) in subsection (9)—

• (i) by the insertion after subparagraph (iii) of paragraph (a) of the following subparagraph:

“(iiia) in the case of a certificate issued to a company, there has been a change in control of the company,”,

• (ii) by the substitution of the following subparagraph for subparagraph (iv) of paragraph (a):

• “(iv) a person to whom a certificate of authorisation was issued has failed to comply with any of the obligations imposed on him by the Tax Acts, the Capital Gains Tax Acts, the Value-Added Tax Act, 1972, or by any regulations made thereunder in relation to—

  • (I) the payment or remittance of the taxesrequired to be paid or remitted under any of those Acts,

  • (II) the delivery of returns, and

  • (III) requests to supply to an inspector accounts of, or other information about, any business carried on by him,”,

• (iii) by the substitution in subparagraph (v) of paragraph (a) of “relevant contracts” for “construction contracts”,

• (iv) by the substitution in subparagraph (ii) of paragraph (b) of “relevant payments cards” and “relevant tax deduction card” for “construction payments cards” and “construction tax deduction card”, respectively, and

• (v) by the addition after paragraph (c) of the following paragraph:

• “(d) In paragraph (a) and subsection (10) (c) ‘control’ has the same meaning as in section 102 of the Corporation Tax Act, 1976.”,

and

• (h) in subsection (10)—

• (i) by the insertion after “a certificate of authorisation” in subparagraph (i) of paragraph (a) of “or a relevant payments card”,

• (ii) by the substitution of “£1,000” for “£500” in paragraphs (a), (b) and (c),

• (iii) by the substitution in paragraph (c) of “relevant payments card or relevant tax deduction card” for “construction payments card or construction tax deduction card” in both places where it occurs, and

• (iv) by the addition after subparagraph (iv) of paragraph (c) of the following subparagraphs to that paragraph:

• “(v) who fails to give a sub-contractor from whom tax has been deducted under subsection (2) a certificate of deduction in the prescribed form containing such particulars as are required to be entered therein by virtue of any regulations made under this section, or

• (vi) who, being a company to which a certificate of authorisation has been issued under subsection (7), fails to notify the Revenue Commissioners of a change in control of the company,”.

29 Amendment of Chapter V (Urban Renewal: Relief from Income Tax and Corporation Tax) of Part I of Finance Act, 1986.

29.—Chapter V of Part I of the Finance Act, 1986, is hereby amended—

• (a) in subsection (2) of section 41, by the substitution of “nine years” for “five years” in the definition of “the specified period”;

• (b) in section 42—

• (i) by the substitution, in subsection (1), of the following definition for the definition of “qualifying period” (as provided for by section 30 of the Finance Act, 1990):

“‘qualifying period’ means—

• (a) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of May, 1993, or

• (b) where section 41 (2) applies, the specified period:

Provided that where capital expenditure is incurred on the construction of any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the reference to the 31st day of May, 1993, in paragraph (a) of this definition shall be construed as a reference to the 31st day of May, 1994;”,

and

• (ii) by the insertion in subsection (4) of the following additional proviso to that subsection:

“Provided also that, notwithstanding section 51 (as amended by section 80 of the Finance Act, 1990) of the Finance Act, 1988, as respects any capital expenditure incurred on or after the 25th day of January, 1996, on the construction of any qualifying premises the site of which is wholly within the Custom House Docks Area—

• (i) any allowance made under section 264 of the Income Tax Act, 1967, and increased under paragraph (a) of subsection (2) of section 25 of the Finance Act, 1978, in respect of that expenditure, whether claimed in one chargeable period or more than one such period, shall not, in the aggregate, exceed 54 per cent. of the amount of that expenditure, and

• (ii) where any allowance made under the said section 264 in respect of that expenditure is increased under the said section 25 for any chargeable period, no allowance shall be made in respect of that expenditure under section 254 of the Income Tax Act, 1967.”;

• (c) in subsection (1) (a) of section 44, by the substitution of the following definition for the definition of “qualifying period” (as provided for by section 30 of the Finance Act, 1990):

“‘qualifying period’ means—

• (a) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of May, 1993, or

• (b) where section 41 (2) applies, the specified period:

Provided that where qualifying expenditure is incurred on the construction of any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the reference to the 31st day of May, 1993, in paragraph (a) of this definition shall be construed as a reference to the 31st day of May, 1994;”;

and

• (d) in subsection (1) (a) of section 45 (as amended by section 21 of the Finance Act, 1991)—

• (i) by the substitution of the following definition for the definition of “qualifying period” (as provided for by section 30 of the Finance Act, 1990):

“‘qualifying period’ means—

• (a) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of May, 1993, or

• (b) where section 41 (2) applies, the specified period:

Provided that in the case of a qualifying lease in relation to any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the reference to the 31st day of May, 1993, in paragraph (a) of this definition shall be construed as a reference to the 31st day of May, 1994;”,

and

• (ii) by the substitution, as on and from the 24th day of April, 1992, of the following subparagraph for subparagraph (I) of paragraph (i) of the definition of “qualifying premises”:

• “(I) which is an industrial building or structure within the meaning of section 255 (1) of the Income Tax Act, 1967, and in respect of which capital expenditure is incurred in the qualifying period for which an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV or under Chapter I of Part XVI of that Act, or”.

30 Amendment of section 27 (designated areas for urban renewal relief) of Finance Act, 1987.

30.—Section 27 of the Finance Act, 1987, is hereby amended by the substitution in subsection (1) (a) (ii) of “the 24th day of January, 1997” for “the 31st day of May, 1993” (inserted by section 31 of the Finance Act, 1990).

31 Amendment of section 4 (relief for expenditure on certain buildings in designated areas) of Finance Act, 1989.

31.—Section 4 of the Finance Act, 1989, is hereby amended, in subsection (1), by the substitution in the definition of “qualifying period” of “31st day of May, 1994” for “31st day of May, 1993” (as provided for by section 30 of the Finance Act, 1990).

32 Amendment of section 18 (date for payment of tax) of Finance Act, 1988.

32.—Section 18 (as amended by section 52 of the Finance Act, 1991) of the Finance Act, 1988, is hereby amended in paragraph (b) of subsection (3) (inserted by section 24 of the Finance Act, 1990)—

• (a) by the substitution in subparagraph (ii) of “in the case of an assessment to income tax made on a chargeable person” for “in the case of a chargeable person who is chargeable to income tax”,

• (b) by the substitution in subparagraph (ii) and in both of the provisos thereto of “the income tax payable” for “the tax payable”, in each place where it occurs, and

• (c) by the substitution in the first proviso to subparagraph (ii) of “additional income tax” for “additional tax”, in both places where it occurs,

and the said subparagraph (ii) (including the said provisos thereto), as so amended, is set out in the Table to this section.

TABLE

• (ii) in the case of an assessment to income tax made on a chargeable person for the said chargeable period being a year of assessment, the income tax payable for the immediately preceding chargeable period:

Provided that for the purposes of this subparagraph—

• (I) where the chargeable person was not a chargeable person for the immediately preceding chargeable period, the income tax payable for the immediately preceding chargeable period shall be taken to be nil, and

• (II) where, after the due date for the payment of an amount of preliminary tax for a chargeable period which is a year of assessment, an amount of additional income tax for the immediately preceding chargeable period becomes payable, that additional income tax shall not be taken into account if, but only if, it became due and payable one month following the amendment to the assessment or the determination of the appeal, as the case may be, by virtue of the provisos (as amended by section 24 of the Finance Act, 1990) to subsection (4) or (5),

Provided also that, for the purpose of this subparagraph, where the chargeable person is chargeable to income tax for a chargeable period being the year of assessment 1991-92 or any subsequent year of assessment, the income tax payable for the immediately preceding chargeable period shall be determined without regard to any relief to which the chargeable person is, or may become, entitled for that immediately preceding chargeable period under Chapter III of Part I of the Finance Act, 1984.

33 Amendment of section 21 (miscellaneous) of Finance Act, 1988.

33.—(1) Section 21 of the Finance Act, 1988, is hereby amended by the substitution of “the Tax Acts and the Capital Gains Tax Acts” for “the Tax Acts”—

• (a) in subsection (3) (as amended by the Finance Act, 1991), and

• (b) in both places where it occurs in subsection (4), and the said subsections (3) and (4), as so amended, are set out in the Table to this section.

• (2) Subsection (1) shall be deemed to have come into operation on the 6th day of April, 1991.

TABLE

• (3) Where the inspector or any other officer of the Revenue Commissioners acting with the knowledge of the inspector causes to issue, manually or by any electronic, photographic or other process, a notice of preliminary tax bearing the name of the inspector or a notice of assessment or a notice of an amendment of an assessment bearing the name of the inspector, the said notice of preliminary tax shall, for all the purposes of the Tax Acts and the Capital Gains Tax Acts, be deemed to have been given by the inspector to the best of his opinion and the said assessment or amended assessment to which the notice of assessment or notice of amended assessment relates, as the case may be, shall, for those purposes, be deemed to have been made by the inspector to the best of his judgment.

• (4) An assessment which is otherwise final and conclusive shall not, for any purpose of the Tax Acts and the Capital Gains Tax Acts, be regarded as not final and conclusive or as ceasing to be final and conclusive by reason only of the fact that the inspector has amended or may amend the assessment pursuant to the provisions of section 14 and where, in the case of a chargeable person, the inspector elects under section 13 (4) not to make an assessment for a chargeable period, the provisions of the Tax Acts and the Capital Gains Tax Acts shall apply as if an assessment for that chargeable period made on the chargeable person had become final and conclusive on the date the notice of election is given.

34 Amendment of Chapter VII (Urban Renewal: Temple Bar and other areas) of Part I of Finance Act, 1991.

34.—Chapter VII of Part I of the Finance Act, 1991, is hereby amended—

• (a) in subsection (1) (a) of section 56—

• (i) by the insertion in the definition of “qualifying period” in subparagraph (ii) of the following proviso to that definition:

“Provided that where relevant expenditure is incurred on any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the first-mentioned reference to the 31st day of May, 1993, in this definition shall be construed as a reference to the 31st day of May, 1994.”,

and

• (ii) by the insertion in the definition of “qualifying period” in subparagraph (iv) of the following proviso to that definition:

“Provided that—

• (I) subject to paragraph (II), where relevant expenditure is incurred on any qualifying premises the foundation for which was laid in its entirety on or before the 28th day of January, 1992, the reference to the 31st day of March, 1992, shall be construed as a reference to the 31st day of July, 1992, and

• (II) paragraph (I) shall not apply to expenditure to which the provisions of section 23 of the Finance Act, 1981, are applied by virtue of the provisions of—

• (A) section 24 of that Act, or

• (B) section 21 or 22 of the Finance Act, 1985;”;

• (b) in section 57, by the substitution of “the 31st day of May, 1994” for “the 31st day of May, 1993” in subsection (1) (b) (ii) and in the definition of “qualifying period” in subsection (3) (a) (ii); and

• (c) in section 58, by the substitution of “the 31st day of May, 1994” for “the 31st day of May, 1993” in both subsections (1) (b) (ii) and (3) (b) (i) and in the definition of “qualifying period” in subsection (3) (b) (ii).

35 Treatment of certain distributions received on or after 29th day of January, 1992.

35.— As respects distributions received by a person on or after the 29th day of January, 1992, the Corporation Tax Act, 1976, is hereby amended as follows—

• (a) in Part IV by the insertion after section 66 of the following section—

“Distributions received on or after 29th day of January, 1992 (Part IV).

66A.—(1) In this section—

‘the adjusted average relieved distribution’, in relation to a relieved distribution received by a person from a company, means five-fourths of the average relieved distribution in relation to the relieved distribution received by the person from the company;

‘the average relieved distribution’, in relation to a relieved distribution received by a person from a company, means one-quarter of the total amount of relieved distributions received by the person from the company in the years 1987-88, 1988-89, 1989-90 and 1990-91;

‘the relieved amount’ means so much of a distribution to which section 64 applies as is determined by the formula—

A −	B × (100 − C) ____ C

where—

A is the amount of the distribution,

B is the amount of the tax credit in respect of the distribution, and

C is the standard rate per cent. for the purposes of section 88 (2) in respect of the year of assessment in which the distribution is made;

‘the relieved distribution’ has the meaning assigned to it in subsection (2).

• (2) Notwithstanding any other provision of the Tax Acts—

  • (a) as respects distributions received by a person on or after the 29th day of January, 1992, for the purposes of determining his liability, if any, to income tax in respect of such distributions, and

  • (b) as respects distributions received by a person in the year 1987-88 and subsequent years of assessment, for the purposes of applying the provisions of subsection (3) to distributions received by the person on or after the 29th day of January, 1992,

  so much of a distribution to which section 64 applies as is the relieved amount shall be treated as a separate distribution (hereinafter in this section referred to, in particular, as ‘the relieved distribution’) received by the person in respect of which he shall not be entitled to a tax credit, and the remainder, if any, of the distribution to which section 64 applies shall be treated as a separate distribution received by him in respect of which the tax credit shall be the tax credit in respect of the distribution to which section 64 applies.

• (3) Sections 66 and 67 shall not have effect as respects any distribution received by a person on or after the 29th day of January, 1992:

Provided that—

- (*a*) as respects the year 1991-92, two-thirds of the lesser of*—*

    - (i) the total amount of relieved distributions received by a person from a company on or after the 29th day of January, 1992, and before the 6th day of April, 1992, or

    - (ii) the amount by which the adjusted average relieved distribution in relation to those distributions exceeds the total amount, which may be nil, of relieved distributions received by the person from the company on or after the 6th day of April, 1991, and before the 29th day of January, 1992,

      shall not be regarded as income for any of the purposes of the Income Tax Acts other than the purposes of section 54 of the Finance Act, 1974;

- (*b*) two-thirds of so much of the total amount of relieved distributions received by a person from a company in the year 1992-93 as does not exceed the adjusted average relieved distribution in relation to those distributions, shall not be regarded as income for any of the purposes of the Income Tax Acts other than the purposes of the said section 54; and

- (*c*) one-third of so much of the total amount of relieved distributions received by a person from a company in the year 1993-94 as does not exceed the adjusted average relieved distribution in relation to those distributions, shall not be regarded as income for any of the purposes of the Income Tax Acts other than the purposes of the said section 54.

• (4) Where by virtue of this section sections 66 and 67 are not to apply to a distribution to which section 64 applies, then that distribution shall be ignored for the purposes of section 54 of the Finance Act, 1974:

Provided that where an amount representing relieved distributions is not to be regarded as income for any of the purposes of the Income Tax Acts by virtue of this section, other than the purposes of the said section 54, it shall not be so ignored.”,

and

• (b) in Part V by the insertion after section 76 of the following section—

“Distributions received on or after 29th day of January, 1992 (Part V).

76A.—(1) In this section—

‘the adjusted average distribution’, in relation to a distribution received by a person from a company, means five-fourths of the average distribution in relation to the distribution received by the person from the company;

‘the average distribution’, in relation to a distribution received by a person from a company, means one-quarter of the total amount of distributions received by the person from the company in the years of assessment 1987-88, 1988-89, 1989-90 and 1990-91;

‘distribution’ means any distribution made out of income from exempted trading operations within the meaning of section 70.

• (2) Where a person receives any distributions on or after the 29th day of January, 1992, subparagraph (i) of paragraph (a) of subsection (2) of section 76 shall not apply to those distributions:

Provided that this subsection shall not have effect in respect of—

- (*a*) as respects the year 1991-92, two-thirds of the lesser of—

    - (i) the total amount of distributions received by a person from a company on or after the 29th day of January, 1992, and before the 6th day of April, 1992, or

    - (ii) the amount by which the adjusted average distribution in relation to those distributions exceeds the total amount, which may be nil, of distributions received by the person from the company on or after the 6th day of April, 1991, and before the 29th day of January, 1992,

- (*b*) two-thirds of so much of the total amount of distributions received by a person from a company in the year 1992-93 as does not exceed the adjusted average distribution in relation to those distributions, and

- (*c*) one-third of so much of the total amount of distributions received by a person from a company in the year 1993-94 as does not exceed the adjusted average distribution in relation to those distributions.

• (3) Where, by virtue of this section, subparagraph (i) of paragraph (a) of subsection (2) of section 76 is not to apply to an amount representing distributions received by a person from a company, those distributions shall be disregarded for the purposes of section 54 of the Finance Act, 1974, to the extent of that amount.”.

36 Option in relation to section 35 (certain unit trusts not to be collective investment undertakings) of Finance Act, 1990.

36.—(1) Where the trustees of a unit trust scheme, within the meaning assigned to it by section 1 (1) of the Unit Trust Act, 1990, which, apart from section 35 of the Finance Act, 1990, would be a collective investment undertaking for the purposes of section 18 of, and the First Schedule to, the Finance Act, 1989, have, not later than the 1st day of November, 1992—

• (a) paid the capital gains tax, which would have been chargeable on them if—

• (i) on the 31st day of March, 1992, they had disposed of all the assets of the unit trust scheme, and

• (ii) the resulting chargeable gains were chargeable to tax at one half of the rate at which they would have been chargeable under the Capital Gains Tax Acts apart from this subparagraph,

and

• (b) given notice in writing to the Revenue Commissioners that they have paid that tax in accordance with paragraph (a),

then, notwithstanding the said section 35, the unit trust scheme (hereafter in this section referred to as “the relevant unit trust”) shall be deemed to be, and to have been, a collective investment undertaking for the said purposes with effect from the 1st day of April, 1992.

• (2)
• (a) Where units in a relevant unit trust were held by a person on the 31st day of March, 1992, they shall be treated, for the purposes of computing chargeable gains accruing to him on or after the 1st day of April, 1992, as having been acquired by him on the 31st day of March, 1992.

• (b) Subsection (5A) (inserted by section 34 of the Finance Act, 1977) of section 31 of the Capital Gains Tax Act, 1975, shall not apply to disposals on or after the 1st day of April, 1992, of units in a relevant unit trust.

• (3) Where the consideration received for a disposal, or given for an acquisition, of an asset on the 31st day of March, 1992, is to be determined as a result of the provisions of this section, it shall be deemed to be an amount equal to the market value of the asset on the said day.

• (4) For the purposes of this section “market value”, in relation to any asset, has the meaning assigned to it by section 49 of the Capital Gains Tax Act, 1975.

37 Application of section 25 (attribution of distributions to accounting periods) of Finance Act, 1989, to interim dividends.

37.—(1) Section 25 (as amended by section 38 of the Finance Act, 1990) of the Finance Act, 1989, shall have effect as respects dividends paid on or after the 6th day of April, 1992, as if in subsection (3) (a) for “6th day of April, 1991,” there was substituted “6th day of April, 1997”:

Provided that, subject to subsection (2), a company shall not be entitled, by virtue of this section, to specify, in accordance with subsection (1) of the said section 25, that a distribution, being an interim dividend or part of it, is to be treated as made for the accounting period in which it is made where—

• (a) the circumstances of the company are such that, if the distribution or the part of it, as the case may be, were treated as made for the accounting period in which it is made, the company would be unable, at the time when the interim dividend is paid, to determine without recourse to estimation, how much of the distribution or the part of it, as the case may be, would, in accordance with subsection (1) of section 45 (as amended by section 24 of the Finance Act, 1989) of the Finance Act, 1980, be treated as a specified distribution for the purposes of subsection (2) of the said section 45, or

• (b) that treatment of the distribution or the part of it, as the case may be, as made for the accounting period in which it is made, would facilitate any arrangement whereby the tax credit in respect of a dividend received by a shareholder could exceed the tax credit, if any, in respect of a dividend received by another shareholder, notwithstanding that the shareholdings of those shareholders carry the same or substantially similar rights in respect of dividends and capital.

• (2) The proviso to subsection (1) shall apply to a company—

• (a) the profits brought into charge to corporation tax of which are wholly or mainly referable to relevant trading operations within the meaning of subsection (1) (as amended by section 33 of the Finance Act, 1991) of section 39A (inserted by section 17 of the Finance Act, 1981) or subsection (1) of section 39B (inserted by section 30 of the Finance Act, 1987) of the Finance Act, 1980, and

• (b) which—

• (i) (I) is a trading or holding company owned by a consortium for the purposes of paragraph (b) of subsection (1) of section 44 of the Finance Act, 1983, or a 51 per cent. subsidiary of a company resident in the State, and

• (II) has not made an election under the proviso (inserted by section 51) to subsection (1) of the said section 44,

or

• (ii) is referred to in subparagraph (ii) of paragraph (a) of subsection (1) of section 47 of the Finance Act, 1983, as the first-mentioned company,

as if paragraph (b) were deleted from that proviso.

38 Distributions to non-residents.

38.—(1) As respects distributions made on or after the 6th day of April, 1992, section 83 of the Corporation Tax Act, 1976, is hereby amended by the substitution for subsection (4) of the following subsection:

• “(4) Where a person who is not resident in the State receives a distribution made by a company which is resident in the State that distribution shall not be regarded as income of the person for any purpose of the Income Tax Acts:

Provided that, for the purposes of determining whether and to what extent a tax credit in respect of a distribution shall be paid to a person, this section shall apply as if section 38 of the Finance Act, 1992, had not been enacted.”.

• (2) The Revenue Commissioners may by notice in writing require a company which has made a distribution to furnish them, within such time as they may direct, with such particulars as they consider necessary to identify persons benefiting from the provisions of subsection (4) of section 83 of the Corporation Tax Act, 1976.

39 Provisions relating to section 244 (allowance for scientific research) of Income Tax Act, 1967, etc.

39.—(1) For the purposes of the definition of scientific research, that definition shall, subject to subsection (2), be construed as including, and be deemed always to have included, a provision excluding from the meaning of that definition the following activities, that is to say:

• (a) exploring for specified minerals,

• (b) petroleum exploration, and

• (c) petroleum extraction.

• (2) As respects activities carried on before the 29th day of January, 1992, subsection (1) shall not have effect for the purpose of computing any charge to income tax or corporation tax on a person who has, before the 3rd day of December, 1991, made a claim in respect of expenditure incurred in exploring for specified minerals or in respect of petroleum exploration activities or in respect of petroleum extraction activities.

• (3) In this section—

“the definition of scientific research” means the definition of scientific research as enacted in section 5 of the Finance Act, 1946, which definition was repealed and re-enacted in section 244 of the Income Tax Act, 1967 (being a consolidating enactment), and was subsequently substituted (without amendment) in the said section 244 by section 21 of, and paragraph 9 of the First Schedule to, the Corporation Tax Act, 1976;

“designated area” means an area standing designated for the time being by order under section 2 of the Continental Shelf Act, 1968;

“exploring for specified minerals” means searching in the State for deposits of specified minerals or on testing such deposits or winning access thereto, and includes the systematic searching for areas containing specified minerals and searching, by drilling or other means, for specified minerals within those areas but does not include operations which are operations in the course of developing or working a mine;

“licence” means—

• (a) an exploration licence,

• (b) a petroleum prospecting licence,

• (c) a petroleum lease, or

• (d) a reserved area licence, duly granted before the 11th day of June, 1968, in respect of an area in the State, or on or after the 11th day of June, 1968, in respect of either or both a designated area and an area in the State, and which was or may be so granted subject to such licensing terms as were presented to each House of the Oireachtas and includes any such licence the terms of which have been duly amended or varied from time to time;

“licensed area” means an area in respect of which a licence is in force;

“mine” means an underground excavation for the purpose of getting specified minerals;

“petroleum” includes:

• (a) any mineral oil or relative hydrocarbon and natural gas and other liquid or gaseous hydrocarbons and their derivatives or constituent substances existing in its natural condition in strata (including, without limitation, distillate, condensate, casinghead gasoline and such other substances as are ordinarily produced from oil and gas wells), and

• (b) any other mineral substance contained in oil or natural gas brought to the surface with them in the normal process of extraction, but does not include coal and bituminous shales and other stratified deposits from which oil can be extracted by distillation,

won or capable of being won under the authority of a licence;

“petroleum exploration activities” means activities of a person carried on by him or on his behalf in searching for deposits of petroleum in a licensed area, in testing or appraising such deposits or in winning access thereto for the purposes of such searching, testing or appraising, where such activities are carried on under a licence (other than a petroleum lease) authorising the activities and held by him or, if the person is a company, held by the company or a company associated with it;

“petroleum extraction activities” means activities of a person carried on by him or on his behalf under a petroleum lease authorising the activities and held by him or, if the person is a company, held by the company or a company associated with it in—

• (a) winning petroleum from a relevant field, including searching in that field for, and winning access to, such petroleum,

• (b) transporting as far as dry land petroleum that is so won from a place not on dry land, or

• (c) effecting the initial treatment and storage of petroleum that is so won from the relevant field;

“relevant field” means an area in respect of which a licence, being a petroleum lease, is in force;

“specified minerals” means the following minerals occurring in non-bedded deposits of such minerals, that is to say, barytes, felspar, serpentinous marble, quartz rock, soapstone, ores of copper, ores of gold, ores of iron, ores of lead, ores of manganese, ores of molybdenum, ores of silver, ores of sulphur and ores of zinc.

Chapter III Corporation Tax

40 Amendment of section 84A (limitation on meaning of “distribution”) of Corporation Tax Act, 1976.

40.—Section 84A (as amended by the Finance Act, 1991) of the Corporation Tax Act, 1976, is hereby amended—

• (a) in paragraph (b) of subsection (3A) (inserted by the Finance Act, 1990)—

• (i) by the substitution of “as is paid in respect of relevant principal specified in the list referred to in sub-paragraph (iv)” for “as is paid in that period”,

• (ii) by the substitution in subparagraph (iv) of “before the 25th day of March, 1992, the specified trade of the borrower was included in a list prepared by the Industrial Development Authority and approved before that day” for “the specified trade of the borrower is selected by the Industrial Development Authority for inclusion in a list, approved”,

• (b) as respects relevant principal advanced by a company on or after the 20th day of December, 1991, by the substitution of the following subsection for subsection (3B):

• “(3B)

  • (a) Notwithstanding subsections (2), (3) and (3A), any interest paid to a company in respect of relevant principal advanced by the company on or after the 20th day of December, 1991, shall not be treated as a distribution for the purposes of this Act in the hands of the company.

  • (b) Where, apart from this paragraph, any interest paid to a company in respect of relevant principal advanced by the company on or after the 20th day of December, 1991, would not be treated as a distribution for the purposes of this Act in the hands of the company by virtue only of the provisions of paragraph (a), then the provisions of that paragraph shall not apply in relation to so much of that interest as is paid in respect of relevant principal specified in the listreferred to in subparagraph (ii) of this paragraph if—

    • (i) the specified trade is a trade which the borrower commenced to carry on after the 31st day of January, 1990, or is a specified trade of the borrower in respect of which he is committed, under a business plan approved by the Industrial Development Authority, the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta, to the creation of additional employment,

    • (ii) before the 25th day of March, 1992, the specified trade of the borrower was included in a list prepared by the Industrial Development Authority and approved before that day by the Minister for Industry and Commerce and the Minister for Finance, which list specifies a particular amount of relevant principal in respect of each trade which amount is considered to be essential for the success of that trade, and

    • (iii) the borrower, or a company connected (within the meaning of section 157 (5)) with the borrower, is not a company which commenced to carry on relevant trading operations (within the meaning of section 39B of the Finance Act, 1980) after the 20th day of April, 1990, or intends to commence to carry on such trading operations:

    Provided that this paragraph shall not apply to any interest in respect of any relevant principal advanced after the time the total of the amounts of relevant principal to which this paragraph applies, advanced by all lenders who have made such advances, exceeds the aggregate of—

  • (a) £250,000,000, and

  • (b) the excess, if any, of the amount specified in the proviso to paragraph (b) of subsection (3A) over the total of the amounts of relevant principal to which that paragraph applies advanced by all lenders who have made such advances.”,

and

• (c) in paragraph (b) of subsection (4A)—

• (i) by the insertion after subparagraph (i) of the following proviso:

“Provided that this subparagraph shall not apply as respects any relevant period commencing on or after the 20th day of December, 1991, if in that relevant period the said rate exceeds the rate on the basis of which interest would have fallen to be computed if the relevant principal had continued to be denominated in the currency in which it was denominated on the 30th day of January, 1991,”,

• (ii) in subparagraph (ii), with effect on and from the 30th day of January, 1991—

• (I) by the deletion of “for the purposes of a specified trade”, and

• (II) by the insertion in clause (II) of “for the purposes of a specified trade” before “of a borrower”,

and

• (iii) by the insertion after subparagraph (ii) of the following proviso:

“Provided that this subparagraph shall not apply as respects any relevant period commencing on or after the 20th day of December, 1991—

• (a) to such amount of interest as is paid in respect of a period (which shall be deemed to be a separate relevant period) commencing on the 20th day of December, 1991, and ending on the 31st day of December, 1991, as exceeds an amount determined by reference to the rate referred to in sub-paragraph (A) of paragraph (b) where the relevant principal was advanced on the 20th day of December, 1991, under an agreement entered into before that day, and

• (b) in the case of any other interest, if in the relevant period or, where paragraph (a) applies, the part of the relevant period other than the period referred to in that paragraph, the rate on the basis of which interest in respect of the relevant security falls to be computed exceeds—

  • (A) a rate approved by the Minister for Finance in consultation with the Minister for Industry and Commerce,

  or

  • (B) where it is lower than the rate so approved and the relevant principal was advanced on or after the 30th day of January, 1991, and before the 20th day of December, 1991, the rate which would have applied if the relevant principal had continued to be denominated in the currency in which it was denominated when it was advanced,”.

41 Amendment of section 21 (amendment of Part IX (Schedule F and company distributions) of Corporation Tax Act, 1976) of Finance Act, 1989.

41.—Section 21 of the Finance Act, 1989, is hereby amended, as respects interest paid on or before the 31st day of December, 1991, by the substitution of the following paragraph for paragraph (b) of subsection (2):

• “(b) the interest or other distribution is paid on or before the 31st day of December, 1991, in respect of—

  • (i) a period before that date, and

  • (ii) a security issued before the 12th day of April, 1989.”.

42 Amendment of Part XXXII (government and other public loans) of Income Tax Act, 1967, and computation of losses.

42.—(1) Part XXXII of the Income Tax Act, 1967, is hereby amended—

• (a) as respects securities acquired by a company after the 29th day of January, 1992, whether they were issued before or after that date, by the addition of the following proviso to section 464:

“Provided that, notwithstanding that a security has been issued with such condition, where the security is held by or for a branch or agency through which a company carries on a trade or business in the State, which is such a trade or business, as the case may be, that, if the security had been issued without such condition, interest on, or other profits or gains from, the security accruing to the company would be chargeable to corporation tax under Case I of Schedule D, or in accordance with the provisions of section 43 of the Corporation Tax Act, 1976, then such interest and profits or gains shall be charged to tax as if the security had been issued without such condition.”,

• (b) as respects securities acquired by a company after the 15th day of May, 1992, whether they were issued before or after that date, by the substitution for section 470 of the following section:

“Securities of Irish local authorities issued abroad.

470.—(1) Securities issued (whether before or after the commencement of this Act) outside the State by a local authority in the State for the purpose of raising any money which they are authorised to borrow, if issued under the authority of the Minister for Finance, shall not be liable to tax, except where they are held—

• (a) by persons domiciled in the State or ordinarily resident in the State, or

• (b) by or for a branch or agency through which a company carries on a trade or business in the State which is such a trade or business, as the case may be, that, if this section had not been enacted, interest on, or other profits or gains from them accruing to the company would be chargeable to corporation tax under Case I of Schedule D or in accordance with the provisions of section 43 of the Corporation Tax Act, 1976.

• (2) In this section ‘local authority’ includes any public body which is recognised as a local authority for the purpose of this section by the Minister for the Environment.”,

and

• (c) as respects securities acquired by a company after the 15th day of May, 1992, whether they were issued before or after that date, by the addition of the following proviso to subsection (2) of section 474:

“Provided that, notwithstanding that a security has been issued as aforesaid with either or both such conditions, where the security is held by or for a branch or agency through which a company carries on a trade or business in the State, which is such a trade or business, as the case may be, that, if the security had been issued without any such conditions, interest on, or other profits or gains from, the security accruing to the company would be chargeable to corporation tax under Case I of Schedule D or in accordance with the provisions of section 43 of the Corporation Tax Act, 1976, then such interest and profits or gains shall be charged to tax as if the security had been issued without any such conditions.”.

• (2) Notwithstanding subsection (5) of section 16 or subsection (3) of section 18 of the Corporation Tax Act, 1976, in ascertaining for the purposes of those sections whether and to what extent a company has incurred a loss in carrying on a trade in the State through a branch or agency, the interest on, and other profits or gains from, a security held by or for the branch or agency, shall be treated as a trading receipt of the trade if such interest or other profits or gains would, if sections 464, 470 and 474 of the Income Tax Act, 1967, had not been enacted, have been so treated, or have been included in an amount so treated.

• (3) Subsection (2) shall have effect for the purposes of ascertaining whether and to what extent a company has incurred a loss—

• (a) as if sections 470 and 474 of the Income Tax Act, 1967, were not mentioned in that subsection, where, apart from that subsection, the company would be treated as having incurred a loss and that loss would be—

• (i) set-off against the trading income or profits (whether of that company or any other company) of, or

• (ii) incurred in,

an accounting period falling within the period from the 1st day of February, 1992, to the 15th day of May, 1992, and

• (b) where, apart from that subsection, the company would be treated as having incurred a loss and that loss would be—

• (i) set-off against the trading income or profits (whether of that company or any other company) of, or

• (ii) incurred in,

an accounting period ending on or after the 15th day of May, 1992:

Provided that the amount of relief against income or profits of an accounting period—

• (I) ending before the 1st day of February, 1992, where paragraph (a) of subsection (3) applies, or

• (II) ending before the 15th day of May, 1992, where paragraph (b) of subsection (3) applies,

for a loss shall not be reduced by virtue of subsection (2) unless the loss was incurred in an accounting period ending on or after the date concerned.

• (4)
• (a) For the purposes of subsections (2) and (3) and paragraph (b), an accounting period which begins before the 15th day of May, 1992, and ends on or after that date, shall be divided into one part, beginning on the day on which the accounting period begins and ending on the 14th day of May, 1992, and another part beginning on the 15th day of May, 1992, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods.

• (b) Where subsection (2) applies, for the purpose of ascertaining whether and to what extent a company has incurred a loss, by virtue of section 464 of the Income Tax Act, 1967, being mentioned in that subsection, then for the purposes of subsections (2) and (3) an accounting period which begins before the 1st day of February, 1992, and ends on or after that date, shall be divided into one part, beginning on the day on which the accounting period begins and ending on the 31st day of January, 1992, and another part beginning on the 1st day of February, 1992, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods.

43 Building societies (taxation of certain transactions).

43.—(1) In this section—

“building society” means a building society incorporated, or deemed by section 124 (2) of the Building Societies Act, 1989, to be incorporated, under that Act, and references to “society” shall be construed accordingly;

“security” means an asset which is not a chargeable asset for the purposes of capital gains tax by virtue of section 19 of the Capital Gains Tax Act, 1975.

• (2) Where on or after the 29th day of January, 1992, a society sells or transfers a security and, apart from this subsection, all of the profit or gain or loss on the sale or transfer would be taken into account in computing, for the purposes of assessment to corporation tax, the trading income of the society's trade, then so much of the amount of the profit or gain or loss on the sale or transfer shall not be so taken into account as does not exceed—

• (a) as respects sales or transfers in the period beginning on the 29th day of January, 1992, and ending on the 31st day of December, 1992, an amount equal to 75 per cent. of the profit or gain or loss,

• (b) as respects sales or transfers in the year 1993, an amount equal to 50 per cent. of the profit or gain or loss, and

• (c) as respects sales or transfers in the year 1994, an amount equal to 25 per cent. of the profit or gain or loss.

• (3)
• (a) Section 29 (as amended by section 27 of the Finance Act, 1991), other than paragraph (b) of subsection (2A), of the Finance Act, 1984, shall apply to the sale or transfer on or after the 29th day of January, 1992, of a security by a society notwithstanding that all or a part of the profit or gain or loss on the sale or transfer of the security is taken into account in computing, for the purposes of assessment to corporation tax, the trading income of the society's trade:

Provided that the amount of interest which, apart from this proviso, is chargeable on the sale or transfer of a security under the said section 29 by virtue of this subsection shall be reduced by—

• (i) as respects sales or transfers in the period beginning on the 29th day of January, 1992, and ending on the 31st day of December, 1992, 25 per cent. of the said amount,

• (ii) as respects sales or transfers in the year 1993, 50 per cent. of the said amount, and

• (iii) as respects sales or transfers in the year 1994, 75 per cent. of the said amount.

• (b) This subsection shall not apply to a sale or transfer of a security after the 31st day of December, 1994.

• (4) Subsection (9) (as amended by section 34 of the Finance Act, 1986) of section 31 of the Corporation Tax Act, 1976, is hereby repealed and shall be deemed not to have applied or had effect for accounting periods ending on or after the 1st day of April, 1989.

44 Amendment of Part III (special classes of companies) of Corporation Tax Act, 1976.

44.—Part III of the Corporation Tax Act, 1976, is hereby amended, as respects accounting periods ending on or after the 1st day of January, 1992, for the purposes of paragraphs (a), (b), (c) and (e) and as respects accounting periods ending on or after the 1st day of January, 1993, for the purposes of paragraphs (d) and (f)—

• (a) by the substitution for paragraph (a) of subsection (1) of section 33 of the following paragraph:

• “(a) there shall be deducted from the amount treated as expenses of management for any accounting period—

  • (i) any repayment or refund receivable in the period of the whole or part of a sum disbursed by the company (for that period or any earlier period) as expenses of management, including commissions (in whatever manner described),

  • (ii) reinsurance commissions earned by the company in the period, and

  • (iii) the amount of any fines or fees receivable in the period or profits arising from reversions in the period,

  and in calculating profits arising from reversions the company may set off against those profits any losses arising from reversions in any previous accounting period during which any enactment granting this relief was in operation so far as they have not already been so set off, and”,

• (b) by the addition after subsection (2) of section 33 of the following subsection:

• “(3) The relief under this section available to an overseas life assurance company in respect of its expenses of management shall be limited to expenses attributable to the life assurance business carried on by the company at or through its branch or agency in the State.”,

• (c) by the insertion after section 33 of the following section:

“Acquisition expenses.

33A.—(1) For the purposes of this section and subject to subsections (2), (3) and (4), the acquisition expenses for any period of an assurance company carrying on life assurance business shall be such of the following expenses of management, including commissions (in whatever manner described), as are for that period attributable to the company's life assurance business (excluding pension business and general annuity business), that is to say:

• (a) expenses of management which are disbursed solely for the purpose of the acquisition of business, and

• (b) so much of any other expenses of management which are disbursed partly for the purpose of the acquisition of business and partly for other purposes as are properly attributable to the acquisition of business,

reduced by—

- (i) any repayment or refund receivable in the period of the whole or part of management expenses falling within paragraph (*a*) or (*b*) and disbursed by the company (for that period or any earlier period), and

- (ii) reinsurance commission earned by the company in that period which is referable to life assurance business (excluding pension business and general annuity business).

• (2) Subsection (1) shall not apply to acquisition expenses in respect of policies of life assurance issued before the 1st day of April, 1992, but without prejudice to the application of that subsection to any commission (in whatever manner described) attributable to a variation on or after that date in a policy of life assurance issued before that date, and, for this purpose, the exercise of any rights conferred by a policy shall be regarded as a variation of it.

• (3) In subsection (1) ‘the acquisition of business’ includes the securing on or after the 1st day of April, 1992, of the payment of increased or additional premiums in respect of a policy of assurance which has already been issued before, on or after that date.

• (4) For the purposes of subsection (1) and in relation to any period, the expenses of management attributable to a company's life assurance business (excluding pension business and general annuity business) are expenses—

  • (a) which are disbursed for that period (disregarding any treated as so disbursed by subsection (2) of section 15), and

  • (b) which, disregarding subsection (5), are deductible as expenses of management of such life assurance business in accordance with section 33.

• (5) Notwithstanding anything contained in section 33 and subject to subsection (6), only one-seventh of the acquisition expenses for any accounting period (hereafter in this section referred to as ‘the base period’) shall be treated as deductible under that section for the base period, and in subsections (7) and (8) any reference to the full amount of the acquisition expenses for the base period is a reference to the amount of those expenses which would be deductible for that period apart from this subsection.

• (6) Subsection (5) shall have effect in the case of acquisition expenses for an accounting period or part of an accounting period falling wholly within the year ending on—

  • (a) the 31st day of December, 1992, as if for one-seventh there were substituted five-sevenths, and

  • (b) the 31st day of December, 1993, as if for one-seventh there were substituted three-sevenths.

• (7) Where, by virtue of subsection (5) and, where appropriate, subsection (6), only a fraction of the full amount of the acquisition expenses for the base period is deductible under section 33 for that period, then, subject to subsection (8) a further one-seventh of the full amount shall be so deductible for each succeeding accounting period after the base period until the whole of the full amount has become so deductible, except that, for any accounting period of less than a year, the fraction of one-seventh shall be proportionately reduced.

• (8) For any accounting period for which the fraction of the full amount of the acquisition expenses for the base period which would otherwise be deductible in accordance with subsection (7) exceeds the balance of those expenses which has not become deductible for earlier accounting periods, only that balance shall be deductible.”,

• (d) by the insertion after section 46 of the following sections:

“Deemed disposal and reacquisition of certain assets.

46A.—(1) In this section and section 46B—

‘average’, in relation to two amounts, means one-half of the aggregate of those two amounts;

‘closing’, in relation to an accounting period, means the position at the end of the valuation period which coincides with that accounting period or in which that accounting period falls;

‘collective investment undertaking’ has the meaning assigned to it in section 18 of the Finance Act, 1989;

‘foreign life assurance fund’ has the meaningassigned to it in section 42;

‘investment reserve’, in relation to an assurance company, means the excess of the value of the assets of the company's life business fund over the liabilities of the life business;

‘life business fund’ means the fund maintained by an assurance company in respect of its life assurance business or, where the company carries on both ordinary life assurance business and industrial assurance business, both of the funds so maintained;

‘linked assets’ means assets of an assurance company which are identified in its records as assets by reference to the value of which benefits provided for under a policy or contract are to be determined;

‘market value’ has the meaning assigned to it in section 49 of the Capital Gains Tax Act, 1975;

‘opening’, in relation to an accounting period, means the position at the beginning of the valuation period which coincides with that accounting period or in which that accounting period falls;

‘trading company’ means a company—

• (a) whose business consists of the carrying on of insurance business, or the carrying on of any other trade which does not consist to any extent of dealing in commodities, currency, securities, debts or other assets of a financial nature, or

• (b) whose business consists wholly or mainly of the holding of shares or securities of trading companies which are its 90 per cent. subsidiaries;

‘units’ has the same meaning as it has in section 18 of the Finance Act, 1989;

‘with-profits liabilities’ means liabilities in respect of policies or contracts under which the policy holders or annuitants are eligible to participate in surplus.

• (2) Where, on the day on which the accounting period of an assurance company ends, the assets of its life business fund include—

  • (a) units in a collective investmentundertaking, or

  • (b) relevant interests in an offshore fund,

  then, subject to the following provisions of this section and to section 46B, the company shall, for the purposes of corporation tax on capital gains, be deemed to have disposed of and immediately reacquired each of those assets at its market value on the said day:

  Provided that, as respects a disposal of such assets, being a disposal which is deemed to have been made by virtue of this section and not any other disposal, subsection (1) of section 3 of the Capital Gains Tax (Amendment) Act, 1978, shall apply as if paragraph (b) had been deleted from subsection (3) of the said section 3.

• (3) Subsection (2) shall not apply to assets linked solely to pension business or to assets of the foreign life assurance fund and, in relation to other assets which are not assets linked solely to life assurance business (excluding pension business and general annuity business), shall apply only to the relevant chargeable fraction for an accounting period of each class of asset.

• (4) In subsection (3) ‘the relevant chargeable fraction for an accounting period’—

  • (a) in relation to linked assets, means the fraction of which—

    • (i) the denominator is the average of such of the opening and closing life business liabilities as are liabilities in respect of benefits to be determined by reference to the value of linked assets, other than assets linked solely to life assurance business (excluding pension business and general annuity business) or pension business and assets of the foreign life assurance fund, and

    • (ii) the numerator is the average of such of opening and closing liabilities within subparagraph (i) as are liabilities of business the profits of which are not charged to tax under Case I or Case IV of Schedule D,

    and

  • (b) in relation to assets other than linked assets, means the fraction of which—

    • (i) the denominator is the aggregate of—

      • (I) the average of the opening and closing life business liabilities, other than liabilities in respect of benefits to be determined by reference to the value of linked assets and liabilities of the foreign life assurance business, and

      • (II) the average of the opening and closing amounts of the investment reserve,

      and

    • (ii) the numerator is the aggregate of—

      • (I) the average of the opening and closing liabilities within sub-paragraph (i) as are liabilities of business the profits of which are not charged to tax under Case I or Case IV of Schedule D, and

      • (II) the average of the appropriate parts of the opening and closing amounts of the investment reserve.

• (5)

  • (a) In this subsection ‘liabilities’ does not include the liabilities of the foreign life assurance business.

  • (b) In subsection (4) ‘appropriate part’ in relation to the investment reserve, means—

    • (i) where none, or none but an insignificant proportion, of the liabilities of the life business are with-profits liabilities, the part of that reserve which bears to the whole the same proportion as the amount of the liabilities of business, the profits of which are not charged to tax under Case I or Case IV of Schedule D, which are not linked liabilities bears to the whole amount of the liabilities of the life business which are not linked liabilities, and

    • (ii) in any other case, the part of that reserve which bears to the whole the same proportion as the amount of the with-profits liabilities of business, the profits of which are not charged to tax under Case I or Case IV of Schedule D, bears to the whole amount of the with-profits liabilities of the life business.

• (6) For the purposes of this section assets of the foreign life assurance fund and liabilities of the foreign life assurance business shall be left out of account in determining the investment reserve.

• (7) For the purposes of this section an interest is a relevant interest in an offshore fund if—

  • (a) it is a material interest in an off-shore fund for the purposes of Chapter VII of Part I of the Finance Act, 1990, or

  • (b) it would be such an interest if the shares and interests excluded by subsections (6) and (8) of section 65 of the Finance Act, 1990, were limited to shares or interests in trading companies.

  Gains or losses arising by virtue of section 46A.

  46B.—(1) Subject to subsections (2) and (3), chargeable gains or allowable losses which would otherwise accrue on disposals deemed by virtue of section 46A to have been made in a company's accounting period (other than a period in which the company ceased to carry on life business) shall be treated, subject to paragraphs (b) and (c), as not accruing to it, but instead—

  • (a) there shall be ascertained the difference (hereafter in this section referred to as ‘the net amount’) between the aggregate of those gains and the aggregate of those losses, and

  • (b) one-seventh of the net amount shall be treated as a chargeable gain or, where it represents an excess of losses over gains, as an allowable loss accruing to the company in the accounting period, and

  • (c) a further one-seventh shall be treated as a chargeable gain or, as the case may be, as an allowable loss accruing in each succeeding accounting period until the whole amount has been accounted for.

• (2) For any accounting period of less than one year, the fraction of one-seventh referred to in subsection (1) (c) shall be proportionately reduced; and where this subsection has had effect, in relation to any accounting period before the last for which subsection (1) (c) applies, the fraction treated as accruing in that last accounting period shall be reduced so as to secure that no more than the whole of the net amount has been accounted for.

• (3) Where a company ceases to carry on life business before the beginning of the last of the accounting periods for which paragraph (c) of subsection (1) would apply in relation to a net amount, the fraction of that amount that is treated as accruing in the accounting period in which the company ceases to carry on life business shall be such as to secure that the whole of the net amount has been accounted for.”,

• (e) by the deletion of section 47, and

• (f) by the insertion, in subsection (1) of section 50, of “including sections 46A and 46B (inserted by the Finance Act, 1992)”, after “sections 33 to 49”.

45 Credit for bank levy.

45.—(1) (a) In this section—

“accounting profit” means the amount of profit, after taxation and before extraordinary items—

• (i) shown in the profit and loss account—

• (I) in the case of a company resident in the State, which is required under section 148 of the Companies Act, 1963, to be laid before the annual general meeting of the company, or which would be so shown but for subsection (4) of section 149 of the said Act of 1963, and

• (II) in the case of a company which is not resident in the State and which is carrying on a trade in the State through a branch or agency, of the said branch or agency and which is certified by the auditor appointed under section 160 of the Companies Act, 1963, or under the law of the state in which the company is incorporated and which corresponds to that section, as presenting a true and fair view of the profit or loss attributable to the said branch or agency,

• (ii) reduced by the amount of such profit as is attributable to—

• (I) dividends received from companies resident in the State which are members of the group of which that company is a member,

• (II) gains on disposal of capital assets,

• (III) relevant trading operations within the meaning of section 39B (inserted by the Finance Act, 1987) of the Finance Act, 1980,

• (IV) trading operations carried on outside of the State and in respect of which the company is chargeable to corporation tax in the State and to tax on income in another state, and

• (V) dividends received from companies which are not resident in the State,

and

• (iii) increased—

• (I) as respects income from sources specified in subparagraphs (III), (IV) and (V) of paragraph (ii), by an amount determined by the formula—

100 × T _ R

where—

T is the corporation tax chargeable in respect of that income computed in accordance with the provisions of the Corporation Tax Acts and after allowing relief under Chapter VI of Part I of the Finance Act, 1980, and Part XXII of the Income Tax Act, 1967, and

R is the rate of corporation tax for the accounting period concerned and to which section 1 of the Corporation Tax Act, 1976, relates:

Provided that the proviso to subsection (1B) of section 13 (as amended by the Finance Act, 1988) of the Corporation Tax Act, 1976, shall apply for the purposes of this subparagraph as it applies for the purposes of that section, and

• (II) by the amount of stamp duty charged under section 200, section 64 of the Finance Act, 1989, or section 108 of the Finance Act, 1990, and under section 94 of the Finance Act, 1986, as has been taken into account in computing the said amount of profit, after taxation and before extraordinary items;

“adjusted group base tax”, in relation to a relevant period, means—

• (i) an amount determined by the formula—

T × P _ B

where—

T is the group base tax,

P is the group profit of the relevant period, and

B is the group base profit,

or

• (ii) if it is greater, the group advance corporation tax of the relevant period;

“advance corporation tax”, in relation to a relevant period, means the aggregate of the amounts of advance corporation tax paid or treated as paid by a company, and not repaid, under Chapter VII of Part I of the Finance Act, 1983, in respect of distributions made in accounting periods falling wholly or partly within the relevant period; and, where an accounting period falls partly within a relevant period, the aggregate shall include a part of the advance corporation tax so paid proportionate to the part of the accounting period falling within the said relevant period;

“base profit”, in relation to a company, means one-half of the aggregate of the amounts of accounting profit of a company for accounting periods falling wholly or partly in the period beginning on the 1st day of April, 1989, and ending on the 31st day of March, 1991; and, where an accounting period falls partly within the said period, the aggregate shall include a part of the accounting profit of the accounting period proportionate to the part of the accounting period falling within the said period;

“base tax” means one-half of the aggregate of the corporation tax, chargeable on a company, exclusive of the part of the company's profits attributable to chargeable gains and before the set off of advance corporation tax under Chapter VII of Part I of the Finance Act, 1983, for accounting periods falling wholly or partly in the period beginning on the 1st day of April, 1989, and ending on the 31st day of March, 1991; and, where an accounting period falls partly within the said period, the aggregate shall include a part of the corporation tax so chargeable for the accounting period proportionate to the part of the accounting period falling within the said period;

“group advance corporation tax”, in relation to a relevant period, means the aggregate of the amounts of advance corporation tax in relation to the relevant period of companies which, throughout the relevant period, are members of the group;

“group base profit” means the aggregate of the amounts of base profit of companies which, throughout the relevant period, are members of the group;

“group base tax” means the aggregate of the amounts of base tax of companies which, throughout the relevant period are members of the group:

Provided that where the amount of the group base tax is an amount which is—

• (i) greater than 43 per cent., or

• (ii) lower than 10 per cent.,

of the group base profit, computed in accordance with this section but without regard to subparagraphs (III), (IV) and (V) of paragraph (ii), or subparagraph (I) of paragraph (iii), of the definition of accounting profit, the group base tax shall be deemed to be an amount equal to 25 per cent. of the said group base profit as so computed;

“group profit”, in relation to a relevant period, means the aggregate of the amounts of profit of the relevant period of companies which, throughout the said period, are members of the group;

“group tax liability”, in relation to a relevant period, means the aggregate of the amounts of tax liability of the relevant period of companies which, throughout the said period, are members of the group;

“levy payment” means the aggregate of the amounts charged in the year 1992 or in any later year under section 200 and which have been paid on or before the date by which the amounts are payable by companies which are members of a group;