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FINANCE ACT, 2000

Type Act
Publication 2000-03-23
Last updated 2021-12-21
State Partially repealed superseded text
Text As published
Source Irish Statute Book
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articles 166

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.

8 amending acts · 2021-12-21, Finance Act 2021

Act to charge and impose certain duties of customs and inland revenue (including excise), to amend the law relating to customs and inland revenue (including excise) and to make further provisions in connection with finance

Reform history JSON API

  • “(2) Subject to subsections (3) and (4), exemption from income tax and capital gains tax shall be allowed in respect of the income and chargeable gains arising in respect of assets held in an approved retirement fund.

  • (3) Subject to subsection (4)—

    • (a) the amount or value of any distribution by a qualifying fund manager in respect of assets held in an approved retirement fund shall be treated as a payment to the person beneficially entitled to the assets in the fund of emoluments to which Schedule E applies and, accordingly, the provisions of Chapter 4 of Part 42 shall apply to any such distribution, and

    • (b) the qualifying fund manager shall deduct tax from the distribution at the higher rate for the year of assessment in which the distribution is made unless the qualifying fund manager has received from the Revenue Commissioners a certificate of tax free allowances or a tax deduction card for that year in respect of the person referred to in paragraph (a).

  • (4)

    • (a) Where the distribution referred to in subsection (3) is made following the death of the individual who was prior to death beneficially entitled to the assets of the approved retirement fund, the amount or value of the distribution shall be treated as the income of that individual for the year of assessment in which that individual dies and, subject to paragraph (b), subsection (3) shall apply accordingly.

    • (b) Subsection (3) shall not apply to a distribution made following the death of the individual who was prior to death beneficially entitled to the assets in an approved retirement fund where the distribution is made—

      • (i) to another such fund (hereafter in this subsection referred to as ‘the second-mentioned fund’) the beneficial owner of the assets in which is the spouse of the said individual, or

      • (ii) to, or for the sole benefit of, any child of the individual, or

    • (c) Where, in a case referred to in paragraph (b), the distribution is made—

      • (i) to a person who had attained the age of 21 years at the date of death of the individual beneficially entitled to the assets in the approved retirement fund, or

      • (ii) following the death of the beneficial owner of the second-mentioned fund, not being a distribution to or for the sole benefit of a child of that owner who at the time of death of that person had not attained the age of 21 years,

      the qualifying fund manager shall deduct tax from the distribution at the standard rate of income tax in force at the time of the making of such a distribution, and—

      - (I) notwithstanding anything contained in any provision of the Income Tax Acts, the amount so charged to tax shall not be treated as income for any other purpose of those Acts, and

- (II) the provisions of Chapter 4 of Part 42 and Regulations made in accordance with that Chapter shall, with any necessary modifications, apply to any deduction made under this subsection as if such a deduction were made in accordance with Regulation 25(2) (*b*) of the Income Tax (Employments) Regulations 1960 (S.I. No. 28 of 1960).

  • (5) For the purposes of this section, Chapter 1 of Part 26 shall apply as if references in that Chapter to pension business were references to moneys held in an approved retirement fund.

  • (6) Notwithstanding Chapter 4 of Part 8, that Chapter shall apply to a deposit (within the meaning of that Chapter) where the deposit consists of money held by a qualifying fund manager in that capacity as if such a deposit were not a relevant deposit (within the meaning of that Chapter).

  • (7)

    • (a) At any time when the qualifying fund manager—

      • (i) is not resident in the State, or

      • (ii) is not trading in the State through a fixed place of business,

      the qualifying fund manager shall ensure that there is a person resident in the State and appointed by the qualifying fund manager to be responsible for the discharge of all duties and obligations relating to approved retirement funds which are imposed on the qualifying fund manager by virtue of this Chapter.

    • (b) A qualifying fund manager shall be liable to pay to the Collector-General income tax which the fund manager is required to deduct from any distribution by virtue of this Chapter and the individual beneficially entitled to assets held in an approved retirement fund, including the personal representatives of a deceased individual who was so entitled prior to that individual's death, shall allow such deduction; but where there are no funds or insufficient funds available out of which the qualifying fund manager may satisfy the tax required to be deducted, the amount of such tax for which there are insufficient funds available shall be a debt due to the qualifying fund manager from the individual beneficially entitled to the asset in the approved retirement fund or from the estate of the deceased individual, as the case may be.”,

  • (e) in section 784C—
  • (i) by the substitution of the following for subsection (7):
  • “(7) The provisions of section 784A shall, with any necessary modifications, apply to income and chargeable gains arising from, and to distributions in respect of assets, held in an approved minimum retirement fund as they apply to assets held in an approved retirement fund.”

and

  • (ii) by the deletion of subsections (8) and (9),

and

  • (f) by the deletion of section 784E.
  • (2)
  • (a) Paragraph (b)(iv) of subsection (1) shall be deemed to have come into force and shall take effect as on and from 6 April 1999.
  • (b) Paragraphs (b) (iii) (I), (d) (iii), (e) and (f) of subsection (1) shall apply as regards an approved retirement fund or an approved minimum retirement fund, as the case may be, where the assets in the fund were first accepted into the fund by the qualifying fund manager on or after 6 April 2000.
  • (c) Subject to paragraphs (a) and (b), subsection (1) shall apply as on and from 6 April 2000.
  • (d) Notwithstanding the provisions of Part 30 of the Principal Act, a retirement benefits scheme which was approved by the Revenue Commissioners before 6 April 2000 shall not cease to be an approved scheme because the rules of the scheme are altered on or after that date to enable an individual to whom the scheme applies to exercise an option under subsection (3A) (as amended by this Act) of section 772 of the Principal Act, which that individual would be in a position to exercise in accordance with the terms of that subsection as regards a scheme approved on or after 6 April 2000 and, as regards such a scheme, the provisions of this section shall apply as if the scheme were one approved on or after that date.

24 Amendment of section 515 (excess or unauthorised shares) of Principal Act.

24.—Section 515 of the Principal Act is amended—

  • (a) in subsection (2A)(b) (inserted by the Finance Act, 1999) by the deletion of “5 years” and the substitution of “period of 5 years, or such lesser period as the Minister for Finance may be order prescribe,”, and
  • (b) by the insertion after subsection (7) of the following:
  • “(8) Where an order is proposed to be made under subsection (2A)(b), a draft of the order shall be laid before Dáil Éireann, and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann.”.

25 Amendment of Schedule 11 (profit sharing schemes) to Principal Act.

25.—Schedule 11 to the Principal Act is amended by the insertion after paragraph 13 of the following:

“13A.—(1) Notwithstanding paragraph 13, an individual who has had shares appropriated to him or her in a year of assessment under an approved scheme established by a company (‘the first-mentioned company’) shall, subject to subparagraph (2), be entitled to have shares appropriated to him or her in that year of assessment under an approved scheme established by another company (‘the second-mentioned company’) if, in that year of assessment, the second-mentioned company acquires control, or is part of a consortium that acquires ownership, of the first-mentioned company under a scheme of reconstruction or amalgamation (within the meaning of section 587).

  • (2) Section 515 and paragraph 3(4) shall, subject to any necessary modification, apply as if the first-mentioned company and the second-mentioned company were the same company.

  • (3) This paragraph shall apply to an appropriation of shares made, on or after the date of the passing of the Finance Act, 2000, by the trustees of an approved scheme (within the meaning of section 510(1)).”.

26 Amendment of Schedule 12 (employee share ownership trusts) to Principal Act.

26.—Schedule 12 to the Principal Act is amended in paragraph 11—

  • (a) by the substitution for subparagraph (2B)(d) (inserted by the Finance Act, 1999) of the following:

  • “(d) at each given time—

  • (i) in the case of an employee share ownership trust approved under paragraph 2 before the passing of the Finance Act, 2000, in the 5 year period referred to in clause (b), and

  • (ii) in the case of an employee share ownership trust approved under paragraph 2 on or after the passing of the Finance Act, 2000, in the 5 year period, or such lesser period as the Minister for Finance may by order prescribe, commencing on the date referred to in clause (b),

50 per cent, or such lesser percentage as the Minister for Finance may by order prescribe, of the securities retained by the trustees at that time were pledged by them as security for borrowings, and”,

and

  • (b) by the insertion after subparagraph(9) of the following:
  • “(10) Where an order is proposed to be made under subparagraph (2B)(d), a draft of the order shall be laid before Dáil Éireann, and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann.”.

27 Rights to acquire shares or other assets.

27.—The Principal Act is amended—

  • (a) in section 128—
  • (i) by the insertion after subsection (2) of the following:

  • “(2A) Notwithstanding any other provision of the Tax Acts, where a person is, by virtue of this section, chargeable to tax under Schedule E for a year of assessment in respect of an amount equal to the gain realised from the exercise, assignment or release of a right, he or she shall be a chargeable person for that year for the purposes of Part 41, unless—

    • (a) that amount is deducted in determining the amount of his or her tax-free allowances for that year by virtue of regulation 10(1)(b) of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), or

    • (b) the person has been exempted by an inspector from the requirements of section 951 by reason of a notice given under subsection (6) of that section.”,

  • (ii) by the substitution in subsection (11) of “30 June in the year of assessment following” for “30 days after the end of”, and
  • (iii) by the insertion after subsection (11) of the following:

  • “(11A) Where in relation to any right—

    • (a) the person referred to in subsection (11) is resident in a territory other than the State, and

    • (b) the person who obtains that right is a director or an employee of a company which is resident in the State,

    the provisions of subsection (11) shall also apply to that company.”,

  • (b) by the insertion after section 128 of the following:
“Deferral of payment of tax under section 128. 128A.—(1) Subject to subsection (2), in any case where—
(a) for any year of assessment a person is chargeable to tax under Schedule E, by virtue of section 128, on an amount equal to a gain realised by the exercise of a right to acquire shares in a company (‘the relevant shares’), which right was exercised on or after 6 April 2000, and
(b) following an assessment for the year in which that right was exercised (‘the relevant year’) an amount of tax, chargeable by virtue of section 128 in respect of the amount referred to in paragraph (a), is payable to the Collector-General, and
(c) the person concerned makes an election in accordance with subsection (3),
he or she shall be entitled to defer payment of the tax in accordance with subsection (4).
(2) Subsection (1) shall not apply where the relevant shares are disposed of by the person concerned in the relevant year.
(3) An election under this section shall be made by notice in writing to the inspector on or before 31 January in the year of assessment following the relevant year.
(4) Where an election has been made under this section the tax referred to in subsection (1)(b) shall notwithstanding any other provision of the Income Tax Acts, but subject to the provisions of this section, be paid on or before the earlier of—
(a) 1 November in the year of assessment following the year of assessment in which the relevant shares are disposed of, or
(b) 1 November in the year of assessment following the year of assessment beginning 7 years after the relevant year.
(5) The reference in subsection (4)(a) to the relevant shares being disposed of includes a part disposal of such shares, and in the case of a part disposal, the tax to bepaid shall be determined in a manner that is just and reasonable.
(6) Subject to any other provision of the Income Tax Acts requiring income of any description to be treated as the highest part of a person's income, in determining for the purposes of paragraph (b) of subsection (1) what tax is chargeable on a person by virtue of section 128 in respect of an amount referred to in paragraph (a) of that subsection, that amount shall be treated as the highest part of his or her income for the relevant year.
(7) Notwithstanding any other provision of the Income Tax Acts, the due date in relation to tax, the payment of which has been deferred by virtue of an election under this section, shall, for the purposes of section 1080, be the date when the amount becomes due and payable under subsection (4).”,

and

  • (c) in Schedule 29—
  • (i) by the deletion in column 2 of “section 128(11)”, and
  • (ii) by the insertion in column 3 after “section 127(5)” of “section 128(11) and (11A)”.

28 Amendment of Chapter 4 (interest payments by certain deposit takers) of Part 8 of Principal Act.

28.—(1) Section 256 of the Principal Act is amended in subsection (1) by the substitution for the definition of “appropriate tax” of the following:

“ ‘appropriate tax’, in relation to a payment of relevant interest, means a sum representing income tax on the amount of the payment—

  • (a) in the case of a relevant deposit or relevant deposits held in a special savings account, at the rate of 20 per cent,

  • (b) in the case of a relevant deposit the interest in respect of which is payable annually or at more frequent intervals or a relevant deposit which is a specified deposit within the meaning of section 260, at the standard rate in force at the time of payment, and

  • (c) in the case of any other relevant deposit, being a deposit made on or after the date of the passing of the Finance Act, 2000, at a rate determined by the formula—

(S + 3) per cent

where S is the standard rate per cent (within the meaning of section 4(1)) in force at the time of payment;”.

  • (2) Section 261 of the Principal Act is amended by the substitution for subparagraph (i) of paragraph (c) of the following:

  • “(i) the amount of any payment of relevant interest shall be regarded as income chargeable to tax under Case IV of Schedule D, and under no other Case or Schedule, and shall be taken into account in computing the total income of the person entitled to that amount, but, in relation to such a person (being an individual)—

    • (I) except for the purposes of a claim to repayment under section 267(3), the specified amount within the meaning of section 187 or 188 shall, as respects the year of assessment for which he or she is to be charged to income tax in respect of the relevant interest, be increased by the amount of that payment,

    • (II) the part of taxable income on which he or she is charged to income tax at the standard rate for that year shall be increased by the part of such relevant interest which comes within paragraph (b) or the definition of ‘appropriate tax’ in section 256(1), and

    • (III) as respects any part of relevant interest which comes within paragraph (c) of the definition of ‘appropriate tax’ in section 256(1), the person shall be chargeable to tax at the rate at which tax was deducted from that relevant interest,

    and”.

29 Extension of section 1022 (special provisions relating to tax on wife's income) of Principal Act to spouse's income, etc.

29.—(1) Section 1022 of the Principal Act is amended by—

  • (a) the substitution for subsection (1) of the following:

  • “(1) Where—

    • (a) an assessment to income tax (in this section referred to as the ‘original assessment’) has been made for any year of assessment on an individual, or on an individual's trustee, guardian or committee (in this section referred to as the ‘representative’), or on an individual's executors or administrators,

    • (b) the Revenue Commissioners are of the opinion that, if an application for separate assessment under section 1023 had been in force with respect to that year of assessment, an assessment in respect of or of part of the same income would have been made on, or on the representative of, or on the executors or administrators of, an individual who is the spouse of the individual referred to in paragraph (a) or who was the spouse of the individual referred to in paragraph (a) (in this subsection and in subsection (2) referred to as the ‘spouse’) in that year of assessment, and

    • (c) the whole or part of the amount payable under the original assessment has remained unpaid at the expiration of 28 days from the time when it became due,

    the Revenue Commissioners may give to the spouse, or, if the spouse is dead, to the spouse's executors or administrators, or, if an assessment referred to in paragraph (b) could in the circumstances referred to in that paragraph have been made on the spouse's representative, to the spouse, or to the spouse's representative, a notice stating—

    - (i) particulars of the original assessment and of the amount remaining unpaid under that assessment, and

- (ii) to the best of their judgement, particulars of the assessment (in this subsection referred to as the ‘last-mentioned assessment’) which would have been so made,

  and requiring the person to whom the notice is given to pay the lesser of—

    - (A) the amount which would have been payable under the last-mentioned assessment if it conformed with those particulars, and

    - (B) the amount remaining unpaid under the original assessment.”,
  • (b) the substitution in subsection (2) of “to the spouse or to the spouse's representative, or to the spouse's executors or administrators, as would have followed on the making on the spouse, or on the spouse's representative, or on the spouse's executors or administrators” for “to a woman, or to her trustee, guardian or committee, or to her executors or administrators, as would have followed on the making on her, or on her trustee, guardian or committee, or on her executors or administrators”,
  • (c) the substitution for subsection (6) of the following:
  • “(6) Where a husband or a wife dies (in this subsection and subsections (7) and (8) referred to as the ‘deceased spouse') and at any time before the death the husband and wife were living together, then the other spouse or, if the other spouse is dead, the executors or administrators of the other spouse may, not later than 2 months from the date of the grant of probate or letters of administration in respect of the deceased spouse's estate or, with the consent of the deceased spouse's executors or administrators, at any later date, give to the deceased spouse's executors or administrators and to the inspector a notice in writing declaring that, to the extent permitted by this section, the other spouse or the executors or administrators of the other spouse disclaim responsibility for unpaid income tax in respect of all income of the deceased spouse for any year of assessment or part of a year of assessment, being a year of assessment or a part of a year of assessment for which any income of the deceased spouse was deemed to be the income of the other spouse and in respect of which the other spouse was assessed to tax under section 1017 or under that section as modified by section 1019.”,
  • (d) the substitution in subsection (7) of “the deceased spouse's executors or administrators” for “the woman's executors or administrators”,
  • (e) the substitution in subsection (8) of “a deceased spouse's executors or administrators” for “a woman's executors or administrators”, and
  • (f) the insertion after subsection (8) of the following:
  • “(9) The Revenue Commissioners may nominate in writing any of their officers to perform any acts and discharge any functions authorised by this section to be performed or authorised by the Revenue Commissioners.”.
  • (2)
  • (a) Paragraphs (a) to (e) of subsection (1) shall apply as respects assessments made on or after 10 February 2000.
  • (b) Paragraph (f) of subsection (1) shall apply as respects assessments made before, on or after 10 February 2000.

Chapter 3 Dividend Withholding Tax

30 Dividend withholding tax.

30.—(1) Chapter 8A (inserted by the Finance Act, 1999) of Part 6 of the Principal Act is amended—

  • (a) in section 172A(1)(a)—
  • (i) by the insertion of the following definition after the definition of “American depositary receipt”:

“ ‘approved body of persons’ has the same meaning as in section 235;”,

  • (ii) by the insertion of the following definition after the definition of “collective investment undertaking”:

“ ‘designated broker’ has the same meaning as in section 838;”,

and

  • (iii) by the insertion of the following definition after the definition of “relevant territory”:

“ ‘special portfolio investment account’ has the same meaning as in section 838;”,

  • (b) in section 172B—
  • (i) by the insertion of the following after subsection (4):

  • “(4A)

    • (a) A company resident in the State shall keep and retain for the longer of the following periods—

      • (i) a period of 6 years, or

      • (ii) a period which, in relation to the relevant distributions in respect of which the declaration or notification is made or, as the case may be, given, ends not earlier than 3 years after the date on which the company has ceased to make relevant distributions to the person who made the declaration or, as the case may be, gave the notification to the company,

      all declarations (and accompanying certificates) and notifications (not being a notice given to the company by the Revenue Commissioners) which are made or, as the case may be, given to the company in accordance with this Chapter and Schedule 2A.

    • (b) A company resident in the State shall, on being so required by notice in writing given to the company by the Revenue Commissioners, make available to the Commissioners, within the time specified in the notice—

      • (i) all declarations, certificates or notifications referred to in paragraph (a) which have been made or, as the case may be, given to the company, or

      • (ii) such class or classes of such declarations, certificates or notifications as may be specified in the notice.

    • (c) The Revenue Commissioners may examine or take extracts from or copies of any declarations, certificates or notifications made available to the Commissioners under paragraph (b).”,

  • (ii) by the substitution of the following for subsection (6):
  • “(6) This section shall not apply to a relevant distribution where section 831(5) applies in relation to that distribution.”,

and

  • (iii) by the addition of the following after subsection (6):

  • “(7) This section shall not apply where a relevant distribution is made by a company resident in the State and that distribution is—

    • (a) a distribution made out of exempt profits within the meaning of section 140,

    • (b) a distribution made out of disregarded income within the meaning of section 141 and to which subsection (3)(a) of that section applies, or

    • (c) a distribution made out of exempted income within the meaning of section 142.”,

  • (c) in section 172C—
  • (i) in subsection (2)—
  • (I) by the deletion in paragraph (d) of “or” and by the substitution in paragraph (e)(ii) of “Schedule 2A,” for “Schedule 2A.”, and
  • (II) by the addition of the following after paragraph (e):

  • “(f) an approved body of persons which—

    • (i) is entitled to exemption from income tax under Schedule F in respect of the relevant distribution by virtue of section 235(2), and

    • (ii) has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 7A of Schedule 2A,

    or

  • (g) a designated broker who—

    • (i) is receiving the relevant distribution as all or part of the relevant income or gains (within the meaning of section 838) of a special portfolio investment account, and

    • (ii) has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 7B of Schedule 2A.”,

and

  • (ii) by the addition of the following after subsection (2):

  • “(3) For the purposes of subsection (2) and Schedule 2A—

    • (a) a collective investment undertaking which receives a relevant distribution, and

    • (b) a designated broker who receives a relevant distribution as all or part of the relevant income or gains (within the meaning of section 838) of a special portfolio investment account, shall be treated as being beneficially entitled to the relevant distribution.”,

  • (d) in section 172D—
  • (i) by the substitution in subsection (3) of the following for paragraph (b):

  • “(b) a company which is not resident in the State and—

    • (i) is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory, but is not under the control, whether directly or indirectly, of a person or persons who is or are resident in the State,

    • (ii) is under the control, whether directly or indirectly, of a person or persons who, by virtue of the law of a relevant territory, is or are resident for the purposes of tax in the relevant territory and who is or are, as the case may be, not under the control, whether directly or indirectly, of a person who is, or persons who are, not so resident, or

    • (iii) the principal class of the shares of which, or—

      • (I) where the company is a 75 per cent subsidiary of another company, of that other company, or

      • (II) where the company is wholly-owned by 2 or more companies, of each of those companies,

      is substantially and regularly traded on one or more than one recognised stock exchange in a relevant territory or territories or on such other stock exchange as may be approved of by the Minister for Finance for the purposes of this Chapter,

      and which has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 9 of Schedule 2A and in relation to which declaration each of the certificates referred to in clause (i), the certificate referred to in clause (ii) or, as the case may be, the certificate referred to in clause (iii), of subparagraph (f) of that paragraph is a current certificate (within the meaning of paragraph 2 of that Schedule) at the time of the making of the relevant distribution.”,

  • (ii) by the insertion of the following after subsection (3):
  • “(3A) For the purposes of subsection (3)(b)(i), ‘control’ shall be construed in accordance with subsections (2) to (6) of section 432 as if in subsection (6) of that section for ‘5 or fewer participators’ there were substituted ‘persons resident in the State’.”,
  • (iii) by the substitution in subsection (4) of “subsection (3)(b)(ii)” for “subsection (3)(b)(i)” in each place where it occurs,
  • (iv) in subsection (5)—
  • (I) by the substitution of “subsection (3)(b)(iii)(I)” for “subsection (3)(b)(ii)(II)”, and
  • (II) by the deletion of “subparagraph (iii) of”,

and

  • (v) by the addition of the following after subsection (5):

  • “(6) For the purposes of subsection (3)(b)(iii)(II), a company (in this subsection referred to as an ‘aggregated 100 per cent subsidiary’) shall be treated as being wholly-owned by 2 or more companies (in this subsection referred to as the ‘joint parent companies’) if and so long as 100 per cent of its ordinary share capital is owned directly or indirectly by the joint parent companies, and for the purposes of this subsection—

    • (a) subsections (2) to (10) of section 9 shall apply as those subsections apply for the purposes of that section, and

    • (b) sections 412 to 418 shall apply with any necessary modifications as those sections would apply for the purposes of Chapter 5 of Part 12—

      • (i) if section 411(1)(c) were deleted, and

      • (ii) if the following subsection were substituted for subsection (1) of section 412:

      ‘(1) Notwithstanding that at any time a company is an aggregated 100 per cent subsidiary (within the meaning assigned by section 172D(6)) of the joint parent companies (within the meaning assigned by that section), it shall not be treated at that time as such a subsidiary unless additionally at that time—

    • (a) the joint parent companies are between them beneficially entitled to not less than 100 per cent of any profits available for distribution to equity holders of the company, and

    • (b) the joint parent companies would be beneficially entitled between them to not less than 100 per cent of any assets of the company available for distribution to its equity holders on a winding-up.'.”,

  • (e) in section 172E—
  • (i) in subsection (3)—
  • (I) by the substitution of the following for paragraphs (a) and (b):

  • “(a) to accept, and to retain for the longer of the following periods—

    • (i) a period of 6 years, or

    • (ii) a period which, in relation to the relevant distributions in respect of which the declaration or notification is made or, as the case may be, given, ends not earlier than 3 years after the date on which the intermediary has ceased to receive relevant distributions on behalf of the person who made the declaration or, as the case may be, gave the notification to the intermediary,

    all declarations (and accompanying certificates) and notifications (not being a notice given to the intermediary by the Revenue Commissioners) which are made or, as the case may be, given to the intermediary in accordance with this Chapter and Schedule 2A,

  • (b) on being so required by notice in writing given to the intermediary by the Revenue Commissioners, to make available to the Commissioners, within the time specified in the notice—

    • (i) all declarations, certificates or notifications referred to in paragraph (a) which have been made or, as the case may be, given to the intermediary, or

    • (ii) such class or classes of such declarations, certificates or notifications as may be specified in the notice,”,

and

  • (II) by the substitution of the following for paragraph (f):

  • “(f) to provide to the Revenue Commissioners, not later than 3 months after the end of the first year of the operation of the agreement by the intermediary, a report on the intermediary's compliance with the agreement in that year, which report shall be signed by—

    • (i) if the intermediary is a company, the auditor of the company, or

    • (ii) if the intermediary is not a company, a person who, if the intermediary were a company, would be qualified to be appointed auditor of the company,

    and thereafter, on being required by notice in writing given to the intermediary by the Revenue Commissioners, to provide to the Commissioners, within the time specified in the notice, a similar report in relation to such other period of the operation of the agreement by the intermediary as may be specified in the notice,”,

  • (ii) by the insertion of the following after subsection (3):
  • “(3A) The Revenue Commissioners may examine or take extracts from or copies of any declarations, certificates or notifications made available to the Commissioners under subsection (3)(b).”,

and

  • (iii) by the addition of the following after subsection (7):

  • “(8) Without prejudice to the operation of subsection (6), the authorisation by the Revenue Commissioners of an intermediary as a qualifying intermediary for the purposes of this Chapter shall cease to have effect on the day before the seventh anniversary of the date from which such authorisation applied; but this shall not prevent—

    • (a) the intermediary and the Revenue Commissioners from agreeing to renew the qualifying intermediary agreement entered into between them in accordance with subsection (3) or to enter into a further such agreement, and

    • (b) a further authorisation by the Revenue Commissioners of the intermediary as aqualifying intermediary for the purposes of this Chapter.”,

  • (f) in section 172F—
  • (i) in subsection (3)—
  • (I) by the substitution in paragraph (e) of “For the purposes of this section, but subject to paragraphs (g) and (h)” for “For the purposes of paragraph (d)”,
  • (II) by the substitution in paragraph (e)(v) of “by way of notice in writing or in electronic format” for “by way of notice in writing given in accordance with subsection (1)” and “Liable Fund, and” for “Liable Fund,”,
  • (III) by the substitution of the following for subparagraphs (vi) and (vii) of paragraph (e):
  • “(vi) enters into an agreement with the qualifying intermediary or further specified intermediary, as the case may be, under the terms of which it agrees that if and when required to comply with subsection (7A) it will do so.”,

and

  • (IV) by the addition of the following after paragraph (f):

  • “(g) Notwithstanding paragraph (e), where the Revenue Commissioners are satisfied that an intermediary, being a specified intermediary or other specified intermediary referred to in subsection (7A), has failed to comply with that subsection—

    • (i) the Commissioners may, by notice in writing given to the intermediary, notify it that it shall cease to be treated as a specified intermediary for the purposes of this section from such date as may be specified in the notice, and

    • (ii) notwithstanding any obligations as to secrecy or other restriction upon disclosure of information imposed by or under statute or otherwise, the Commissioners may make available to any qualifying intermediary (being a depositary bank holding shares in trust for, or on behalf of, the holders of American depositary receipts) or specified intermediary a copy of such notice.

  • (h) Where subsequently the Revenue Commissioners are satisfied that the intermediary has furnished the information required under subsection (7A) and will in future comply with that subsection if and when requested to do so, the Commissioners may, by further notice in writing given to the intermediary, revoke the notice given to the intermediary under paragraph (g) from such date as may be specified in the further notice, and a copy of that further notice shall be given to any person to whom a copy of the notice under paragraph (g) was given.”,

  • (ii) by the substitution of the following for subsection (7):

  • “(7)

    • (a) A qualifying intermediary shall, on being so required by notice in writing given to the qualifying intermediary by the Revenue Commissioners, make a return to the Commissioners, within the time specified in the notice (which shall not be less than 30 days) and as respects such year of assessment as may be specified in the notice (being the year of assessment 1999-2000 or any subsequent year of assessment), showing—

      • (i) the name and address of—

        • (I) each company resident in the State from which the qualifying intermediary received, on behalf of another person, a relevant distribution made by that company in the year of assessment to which the return refers, and

        • (II) each other person from whom the qualifying intermediary received, on behalf of another person, an amount or other asset representing a relevant distribution made by a company resident in the State in the year of assessment to which the return refers,

      • (ii) the amount of each such relevant distribution,

      • (iii) the name and address of each person to whom such a relevant distribution, or an amount or other asset representing such a relevant distribution, has been given by the qualifying intermediary, and

      • (iv) the name and address of each person referred to in subparagraph (iii) in respect of whom a declaration under section 172C(2) or 172D(3) has been received by the qualifying intermediary.

    • (b) A return required to be made by a qualifying intermediary under paragraph (a) may be confined to such class or classes of relevant distributions as may be specified in the notice given to the qualifying intermediary by the Revenue Commissioners under that paragraph.

  • (7A)

    • (a) This subsection shall apply where a qualifying intermediary has been required to make a return to the Revenue Commissioners under subsection (7)(a) and a relevant distribution (or an amount or other asset representing a relevant distribution), the details of which are required to be included in that return, has been given by the qualifying intermediary to a specified intermediary.

    • (b) The qualifying intermediary shall, immediately on receipt of the notice referred to in subsection (7)(a), request the specified intermediary, by way of notice in writing or in electronic format, to notify the qualifying intermediary or the Revenue Commissioners of the name and address of each person to whom the specified intermediary gave such a distribution (or an amount or other asset representing such a distribution) and of the amount of each such distribution.

    • (c) The specified intermediary shall, within 21 days of the receipt of a notice under paragraph (b), furnish to the qualifying intermediary or, at the discretion of the specified intermediary, to the Revenue Commissioners, by way of notice in writing or in electronic format, the information required under that paragraph.

    • (d) Where the specified intermediary furnishes the information required under paragraph (b)—

      • (i) to the qualifying intermediary, the qualifying intermediary shall include that information in the return required to be made by it under subsection (7)(a), or

      • (ii) to the Revenue Commissioners, the specified intermediary shall, by way of notice in writing or in electronic format, immediately advise the qualifying intermediary of that factand the qualifying intermediary shall include in the return required to be made by it under subsection (7)(a) a statement to the effect that it has been so advised by the specified intermediary.

    • (e) If any person to whom a specified intermediary gave such a distribution (or an amount or other asset representing such a distribution) is another specified intermediary, the specified intermediary shall, immediately on the receipt of a notice under paragraph (b), request the other specified intermediary, by way of notice in writing or in electronic format, to notify the specified intermediary or the Revenue Commissioners of the name and address of each person to whom it gave such a distribution (or an amount or other asset representing such a distribution) and of the amount of each such distribution.

    • (f) The other specified intermediary shall, within 21 days of the receipt of a notice under paragraph (e), furnish to the specified intermediary or, at the discretion of the other specified intermediary, to the Revenue Commissioners, by way of notice in writing or in electronic format, the information required under that paragraph.

    • (g) Where the other specified intermediary furnishes the information required under paragraph (e)—

      • (i) to the specified intermediary, the specified intermediary shall, by way of notice in writing or in electronic format, immediately transmit that information to the person referred to in paragraph (d) (being the qualifying intermediary or the Revenue Commissioners, as the case may be) to whom it furnishes the information required under paragraph (b), and—

        • (I) if that person is the qualifying intermediary, the qualifying intermediary shall include that information in the return required to be made by it under subsection (7)(a), or

        • (II) if that person is the Revenue Commissioners, the specified intermediary shall, by way of notice in writing or in electronic format, immediately advise the qualifying intermediary of the fact that the informationrequired to be furnished by the other specified intermediary under paragraph (e) has been furnished to the specified intermediary and transmitted by the specified intermediary to the Revenue Commissioners in accordance with this paragraph and the qualifying intermediary shall include in the return to be made by it under subsection (7)(a) a statement to the effect that it has been so advised by the specified intermediary.

        or

      • (ii) to the Revenue Commissioners, the other specified intermediary shall, by way of notice in writing or in electronic format, immediately advise the specified intermediary of that fact, the specified intermediary shall in turn, by way of similar notice, immediately advise the qualifying intermediary of that fact and the qualifying intermediary shall include in the return required to be made by it under subsection (7)(a) a statement to the effect that it has been so advised by the specified intermediary.

    • (h) Where, in accordance with this subsection, the specified intermediary or the other specified intermediary furnishes information to the Revenue Commissioners in electronic format, such format shall be agreed in advance with the Revenue Commissioners.”,

and

  • (iii) by the deletion in subsection (8) of “, not later than the 21st day of May following the year of assessment to which the return refers,”.
  • (g) in section 172G—
  • (i) in subsection (3)—
  • (I) by the substitution of the following for paragraphs (a) and (b):

  • “(a) to accept, and to retain for the longer of the following periods—

    • (i) a period of 6 years, or

    • (ii) a period which, in relation to the relevant distributions in respect of which the declaration or notification is made or, as the casemay be, given, ends not earlier than 3 years after the date on which the intermediary has ceased to receive relevant distributions on behalf of the person who made the declaration or, as the case may be, gave the notification to the intermediary,

    all declarations (and accompanying certificates) and notifications (not being a notice given to the intermediary by the Revenue Commissioners) which are made or, as the case may be, given to the intermediary in accordance with this Chapter and Schedule 2A,

  • (b) on being so required by notice in writing given to the intermediary by the Revenue Commissioners, to make available to the Commissioners, within the time specified in the notice—

    • (i) all declarations, certificates or notifications referred to in paragraph (a) which have been made or, as the case may be, given to the intermediary, or

    • (ii) such class or classes of such declarations, certificates or notifications as may be specified in the notice,”,

and

  • (II) by the substitution of the following for paragraph (g):

  • “(g) to provide to the Revenue Commissioners, not later than 3 months after the end of the first year of the operation of the agreement by the intermediary, a report on the intermediary's compliance with the agreement in that year, which report shall be signed by—

    • (i) if the intermediary is a company, the auditor of the company, or

    • (ii) if the intermediary is not a company, a person who, if the intermediary were a company, would be qualified to be appointed auditor of the company,

    and thereafter, on being required by notice in writing given to the intermediary by the Revenue Commissioners, to provide to the Commissioners, within the time specified in the notice, a similar report in relation to such other period of the operation of the agreement by the intermediary as may be specified in the notice,

    and”,

  • (ii) by the insertion of the following after subsection (3):
  • “(3A) The Revenue Commissioners may examine or take extracts from or copies of any declarations, certificates or notifications made available to the Commissioners under subsection (3)(b).”,

and

  • (iii) by the addition of the following after subsection (7):

  • “(8) Without prejudice to the operation of subsection (6), the authorisation by the Revenue Commissioners of an intermediary as an authorised withholding agent for the purposes of this Chapter shall cease to have effect on the day before the seventh anniversary of the date from which such authorisation applied; but this shall not prevent—

    • (a) the intermediary and the Revenue Commissioners from agreeing to renew the authorised withholding agent agreement entered into between them in accordance with subsection (3) or to enter into a further such agreement, and

    • (b) a further authorisation by the Revenue Commissioners of the intermediary as an authorised withholding agent for the purposes of this Chapter.”,

  • (h) in section 172K(1)—
  • (i) by the deletion in paragraph (f) of “and” and by the substitution in paragraph (g) of “refers, and” for “refers.”, and
  • (ii) by the addition of the following after paragraph (g):
  • “(h) in a case where section 172B has not applied to a relevant distribution by virtue of the operation of subsection (7) of that section, whether the relevant distribution is a distribution within paragraph (a), (b) or (c) of that subsection.”,

and

  • (i) by the insertion of the following section after section 172L:
“Deduction of dividend withholding tax on settlement of market claims. 172LA.—(1) In this section, ‘stockbroker’, means a member firm of the Irish Stock Exchange or of a recognised stock exchange in another territory.
(2) For the purposes of this section, a market claim shall be deemed to have arisen in relation to a relevant distribution where—
(a) a company resident in the State has made a relevant distribution to a person (in this section referred to as the ‘recorded owner’) on the basis of the information on the share register of the company at a particular date,
(b) it subsequently transpires, as a result of an event (in this section referred to as the ‘specified event’), being—
(i) the sale or purchase of. or
(ii) the happening, or failure to happen, of another event in relation to,
the shares or other securities in respect of which the relevant distribution was made, that another person (in this section referred to as the ‘proper owner’) had actually been entitled to receive the relevant distribution, and
(c) a person (in this section referred to as an ‘accountable person’), being—
(i) the relevant stockbroker who has acted for the recorded owner in the specified event, or
(ii) if the recorded owner is a qualifying intermediary or an authorised withholding agent, that intermediary or agent,
is obliged to pay the relevant distribution to the proper owner or, as may be appropriate, to the relevant stockbroker who has acted for the proper owner in the specified event, which action is in this section referred to as the ‘settlement of the market claim’.
(3) Notwithstanding any other provision of this Chapter, where a market claim arises, then, if dividend withholding tax had not already been deducted out of the amount of the relevant distribution made by the company resident in the State to the recorded owner—
(a) the accountable person shall, on the settlement of the market claim, deduct out of the amount of the relevant distribution dividend withholding tax in relation to the relevant distribution,
(b) the proper owner or, as may be appropriate, the relevant stockbroker who has acted for the proper owner in the specified event shall allow such deduction on the receipt of the residue of the relevant distribution, and
(c) the accountable person shall be acquitted and discharged of so much money as is represented by the deduction as if that amount of money had actually been paid to the proper owner or, as may be appropriate, to the relevant stockbroker who has acted for the proper owner in the specified event.
(4) Where subsection (3) applies, the accountable person shall, on the settlement of the market claim, give the proper owner or, as may be appropriate, the relevant stockbroker who has acted for the proper owner in the specified event a statement in writing showing—
(a) the name and address of the accountable person,
(b) the name and address of the company which made the relevant distribution,
(c) the amount of the relevant distribution, and
(d) the amount of the dividend withholding tax deducted in relation to the relevant distribution.
(5) Dividend withholding tax which is required to be deducted by the accountable person under subsection (3) shall be paid by the accountable person to the Collector-General within 14 days of the end of the month in which that tax was required to be so deducted, and the dividend withholding tax so due shall be payable without the making of an assessment, but dividend withholding tax which has become so due may be assessed on the accountable person if that tax or any part of it is not paid on or before the due date.
(6) Dividend withholding tax which is required to be paid in accordance with subsection (5) shall be accompanied by a statement in writing from the accountable person making the payment showing—
(a) the name and address of that accountable person,
(b) the name and address of the company or companies which made the relevant distribution or distributions to which the payment relates, and
(c) the amount of the dividend withholding tax included in the payment.
(7) An accountable person shall, as respects each year of assessment (being the year of assessment 1999-2000 or any subsequent year of assessment) in which subsection (3) applied in relation to the accountable person and not later than the 21st day of May following that year of assessment, make a return to the Revenue Commissioners showing—
(a) the name and address of the accountable person, and
(b) the following details in relation to each market claim to which subsection (3) applied in that year:
(i) the name and address of the company resident in the State which made the relevant distribution to which the market claim relates,
(ii) the amount of the relevant distribution concerned, and
(iii) the amount of the dividend withholding tax in relation to the relevent distribution deducted by the accountable person.
(8) Subject to subsection (9), every return by an accountable person under subsection (7) shall be made in an electronic format approved by the Revenue Commissioners and shall be accompanied by a declaration made by the accountable person, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
(9) Where the Revenue Commissioners are satisfied that an accountable person does not have the facilities to make a return under subsection (7) in the format referred to in subsection (8), the return shall be made in writing in a form prescribed or authorised by the Revenue Commissioners and shall be accompanied by a declaration made by the accountable person, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
(10) (a) An accountable person shall keep and retain for a period of 6 years the accountable person’s documents and records relating to market claims arising from relevant distributions made by companies resident in the State.
(b) An accountable person shall allow the Revenue Commissioners to inspect such documents and records and to verify theaccountable person’s compliance with this section in any other manner considered necessary by the Commissioners.”.
  • (2) Schedule 2A (inserted by the Finance Act, 1999) is amended—
  • (a) by the substitution in paragraph 2 of “paragraph 8(f) or 9(f)” for “paragraph 8(f) or subparagraph (f) or (g) of paragraph 9”,
  • (b) by the insertion of the following after paragraph 7:

“Declaration to be made by approved athletic or amateur sports body

7A. The declaration referred to in section 172C(2)(f)(ii) shall be a declaration in writing to the relevent person which—

  • (a) is made by the person (in this paragraph referred to as ‘the declarer’) beneficially entitled to the relevant distributions in respect of which the declaration is made,

  • (b) is signed by the declarer,

  • (c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

  • (d) declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(f)(i),

  • (e) contains the name and address of the person,

  • (f) contains a statement that, at the time when the declaration is made, the relevant distributions in respect of which the declaration is made will be applied for the sole purpose of promoting athletic or amateur games or sports and are so treated by the Revenue Commissioners,

  • (g) contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and

  • (h) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.

Declaration to be made by designated stockbroker operating special portfolio investment account

7B. The declaration referred to in section 172C(2)(g)(ii) shall be a declaration in writing to the relevant person which—

  • (a) is made by the person (in this paragraph referred to as ‘the declarer’) beneficially entitled to the relevant distributions in respect of which the declaration is made,

  • (b) is signed by the declarer,

  • (c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

  • (d) declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(g)(i),

  • (e) contains the name and tax reference number of the person,

  • (f) contains a statement that, at the time when the declaration is made, the relevant distributions in respect of which the declaration is made will be applied as all or part of the relevant income or gains (within the meaning of section 838) of a special portfolio investment account and are so treated by the Revenue Commissioners,

  • (g) contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and

  • (h) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.”,

  • (c) by the substitution in paragraph 8(g) of the following for clause (ii):
  • “(ii) a notice in writing from the Revenue Commissioners stating that the Commissioners have noted the contents of the certificate referred to in clause (i),”,

and

  • (d) in paragraph 9—
  • (i) by the substitution of the following for subparagraph (f):

  • “(f) is accompanied by—

    • (i) a certificate given by the tax authority of the relevant territory in which the company is, by virtue of the law of that territory, resident for the purposes of tax certifying that the company is so resident in that territory, and a certificate signed by the auditor of the company certifying that in his or her opinion the company is not under the control (within the meaning of section 172D(3A)), whether directly or indirectly, of a person or persons who is or are resident in the State,

    • (ii) a certificate signed by the auditor of the company certifying that in his or her opinion the company is a company which is not resident in the State and is under the control (within the meaning of section 172D(4)(a)), whether directly or indirectly, of a person or persons who, by virtue of the law of a relevant territory, is or are resident for the purposes of tax in such a relevant territory and who is or are, as the case may be, not under the control (within the meaning of section 172D(4)(b)), whether directly or indirectly, of a person who is, or persons who are, not so resident, or

    • (iii) a certificate signed by the auditor of the company certifying that in his or her opinion the principal class of the shares of the company or—

      • (I) where the company is a 75 per cent subsidiary (within the meaning of section 172D(5)) of another company, of that other company, or

      • (II) where the company is wholly-owned (within the meaning of section 172D(6)) by 2 or more companies, of each of those companies,

      is substantially and regularly traded on one or more than one recognised stock exchange in a relevant territory or territories or on such other stock exchange as may be approved of by the Minister for Finance for the purposes of Chapter 8A of Part 6,”,

and

  • (ii) by the deletion of subparagraph (g).
  • (3) Subsection (1) (i) shall apply as on and from 10 February 2000.

31 Amendment of section 153 (distributions to certain non-residents) of Principal Act.

31.—As respects distributions made on or after 6 April 2000, section 153 (as amended by the Finance Act, 1999) of the Principal Act is amended—

  • (a) in subsection (1), by the substitution of the following definition for the definition of “non-resident person”:

“ ‘qualifying non-resident person’, in relation to a distribution, means the person beneficially entitled to the distribution, being—

  • (a) a person, other than a company, who—

    • (i) is neither resident nor ordinarily resident in the State, and

    • (ii) is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory,

    or

  • (b) a company which is not resident in the State and—

    • (i) is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory, but is not under the control, whether directly or indirectly, of a person or persons who is or are resident in the State,

    • (ii) is under the control, whether directly or indirectly, of a person or persons who, by virtue of the law of a relevant territory, is or are resident for the purposes of tax in the relevant territory and who is or are, as the case may be, not under the control, whether directly or indirectly, of a person who is, or persons who are, not so resident, or

    • (iii) the principal class of the shares of which, or—

      • (I) where the company is a 75 per cent subsidiary of another company, of that other company, or

      • (II) where the company is wholly-owned by 2 or more companies, of each of those companies,

      is substantially and regularly traded on one or more than one recognised stock exchange in a relevant territory or territories or on such other stock exchange as may be approved of by the Minister for Finance for the purposes of this section;”,

  • (b) by the insertion of the following subsection after subsection (1):
  • “(1A) For the purposes of paragraph (b)(i) of the definition of ‘qualifying non-resident person’, ‘control’ shall be construed in accordance with subsections (2) to (6) of section 432 as if in subsection (6) of that section for ‘5 or fewer participators’ there were substituted ‘persons resident in the State’.”,
  • (c) in subsection (2), by the substitution of “paragraph (b)(ii) of the definition of ‘qualifying non-resident person’ ” for “paragraph (b)(i) of the definition of ‘non-resident person’ ”,
  • (d) in subsection (3)—
  • (i) by the substitution of “paragraph (b)(iii)(I) of the definition of qualifying non-resident person’ ” for “paragraph (b)(ii)(II) of the definition of ‘non-resident person’ ”, and
  • (ii) by the deletion of “subparagraph (iii) of”,
  • (e) by the insertion of the following subsection after subsection (3):

  • “(3A) For the purposes of paragraph (b)(iii)(II) of the definition of ‘qualifying non-resident person’, a company (in this subsection referred to as an ‘aggregated 100 per cent subsidiary’) shall be treated as being wholly-owned by 2 or more companies (in this subsection referred to as the ‘joint parent companies’) if and so long as 100 per cent of its ordinary share capital is owned directly or indirectly by the joint parent companies, and for the purposes of this subsection—

    • (a) subsections (2) to (10) of section 9 shall apply as those subsections apply for the purposes of that section, and

    • (b) sections 412 to 418 shall apply with any necessary modifications as those sections would apply for the purposes of Chapter 5 of Part 12 if—

      • (i) section 411(1)(c) were deleted, and

      • (ii) the following subsection were substituted for subsection (1) of section 412:

      ‘(1) Notwithstanding that at any time a company is an aggregated 100 per cent subsidiary (within the meaning assigned by section 153(3A)) of the joint parent companies (within the meaning so assigned), it shall not be treated at that time as such a subsidiary unless additionally at that time—

    • (a) the joint parent companies are between them beneficially entitled to not less than 100 per cent of any profits available for distribution to equity holders of the company, and

    • (b) the joint parent companies would be beneficially entitled between them to not less than 100 per cent of any assets of the company available for distribution to its equity holders on a winding-up.’.”,

  • (f) in subsection (4), by the substitution of “qualifying non-resident person” for “non-resident person”, and
  • (g) by the addition of the following subsection after subsection (5):

  • “(6) Where for any year of assessment the income of a person, being an individual who for that year of assessment is neither resident nor ordinarily resident in the State but is not a qualifying non-resident person, includes an amount in respect of a distribution made by a company resident in the State, then—

    • (a) notwithstanding section 15(2), income tax shall not be chargeable in respect of that distribution at a rate in excess of the standard rate, and

    • (b) the amount or value of the distribution shall be treated for the purposes of sections 237 and 238 as not brought into charge to income tax.”.

32 Amendment of section 700 (special computational provisions) of Principal Act.

32.—(1) Section 700 of the Principal Act is amended by the insertion of the following subsection after subsection (1):

  • “(1A) For the purposes of subsection (1), ‘society’ shall include a credit union which is—

    • (a) registered as such under the Credit Union Act, 1997, or

    • (b) deemed to be so registered by virtue of section 5(3) of that Act.”.

  • (2) This section shall be deemed to have come into operation as on and from 6 April 1999.

33 Amendment of section 831 (implementation of Council Directive No. 90/435/EEC concerning the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States) of Principal Act.

33.—As respects distributions made on or after 6 April 2000, section 831 of the Principal Act is amended—

  • (a) in subsection (1)(a), by the substitution of the following definition for the definition of “company”:

“ ‘company’, other than in the expression ‘unlimited company’ in subsection (5A), means a company of a Member State;”,

and

  • (b) by the insertion of the following subsection after subsection (5) (inserted by the Finance Act, 1999):
  • “(5A) Subsection (5) shall apply to a distribution made by an unlimited company within the meaning of section 5(2)(c) of the Companies Act, 1963, as it would apply if the unlimited company were a company of a Member State.”.

Chapter 4 Income Tax, Corporation Tax and Capital Gains Tax

34 Amendment of section 198 (certain interest not to be chargeable) of Principal Act.

34.—(1) Section 198 of the Principal Act is amended by the substitution for subsection (1) of the following:

  • “(1)

    • (a) In this subsection—

    ‘arrangements’ means arrangements having the force of law by virtue of section 826;

    ‘relevant territory’ means—

    - (i) a Member State of the European Communities other than the State, or

- (ii) not being such a Member State, a territory with the government of which arrangements have been made;

  ‘tax’, in relation to a relevant territory, means any tax imposed in that territory which corresponds to corporation tax in the State.

    • (b) For the purposes of this subsection, a company shall be regarded as being a resident of a relevant territory if—

      • (i) in a case where the relevant territory is a territory with the government of which arrangements have been made, the company is regarded as being a resident of that territory under those arrangements, and

      • (ii) in any other case, the company is by virtue of the law of the relevant territory resident for the purposes of tax in that territory.

    • (c) Notwithstanding any other provision of the Income Tax Acts but without prejudice to any charge under the Corporation Tax Acts on the profits of such a person—

      • (i) a company not resident in the State or a person not ordinarily resident in the State shall not be chargeable to income tax in respect of interest paid by—

        • (I) a company in the course of carrying on relevant trading operations (within the meaning of section 445 or 446), or

        • (II) a specified collective investment undertaking (within the meaning of section 734),

        and

      • (ii) a company shall not be chargeable to income tax in respect of interest paid by a relevant person (within the meaning of section 246) in the ordinary course of a trade or business carried on by that person if the company—

        • (I) is not resident in the State, and

        • (II) is regarded for the purposes of this subsection as being a resident of a relevant territory.”.

  • (2) Subsection (1) shall apply as respects interest paid in the year of assessment 2000-2001 and subsequent years of assessment.

35 Capital allowances for, and deduction in respect of, vehicles.

35.—Part 11 of the Principal Act is amended—

  • (a) in subsection (2) of section 373—
  • (i) in paragraph (k), by the substitution of “mechanically propelled vehicle;” for “mechanically propelled vehicle.”, and
  • (ii) by the insertion of the following after paragraph (k):
  • “(l) £16,500, where the expenditure was incurred on or after 1 December 1999 on the provision or hiring of a vehicle which, on or after that date was not a used or secondhand vehicle and was first registered in the State under section 131 of the Finance Act, 1992, without having been previously registered in any other state which duly provides for the registration of a mechanically propelled vehicle.”,

and

  • (b) in subsection (1) of section 376, in the definition of “relevant amount”—
  • (i) in paragraph (c), by the substitution of “£15,500”, for “£15,500, and”, and
  • (ii) by the substitution of the following for paragraph (d):
  • “(d) in relation to qualifying expenditure incurred on or after 2 December 1998 and before 1 December 1999, £16,000,” and
  • (iii) by the insertion of the following after paragraph (d):
  • “(e) in relation to qualifying expenditure incurred on or after 1 December 1999, £16,500;”.

36 Amendment of section 268 (meaning of “industrial building or structure”) of Principal Act.

36.—Section 268 of the Principal Act is amended in subsection (1) by the substitution of the following for paragraph (i):

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