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FINANCE ACT, 2001

Type Act
Publication 2001-03-30
Last updated 2024-02-09
State Partially repealed superseded text
Text As published
Source Irish Statute Book
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articles 243

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.

58 amending acts · 2024-02-09, S.I. No. 36/2024 - Control of Excisable Products Regulations 2024

Act to provide for the imposition, repeal, remission, alteration and regulation of taxation, of stamp duties and of duties relating to excise and otherwise to make further provision in connection with finance including the regulation of customs

Reform history JSON API

“216A.—(1) In this section—

‘qualifying residence’, in relation to an individual for a year of assessment, means a residential premises situated in the State which is occupied by the individual as his or her sole or main residence during the year of assessment;

‘relevant sums’ means all sums arising in respect of the use for the purposes of residential accommodation, of a room or rooms in a qualifying residence and includes sums arising in respect of meals, cleaning, laundry and other similar goods and services which are incidentally supplied in connection with that use;

‘residential premises’ means a building or part of a building used as a dwelling.

  • (2)

    • (a) This subsection applies if—

      • (i) relevant sums, chargeable to income tax under Case IV or Case V of Schedule D, arise to an individual (regardless of whether the relevant sums are chargeable to income tax under Case IV or Case V or under both Case IV and Case V), and

      • (ii) the amount of the relevant sums does not exceed the individual's limit for the year of assessment.

    • (b) In ascertaining the amount of relevant sums for the purposes of this subsection no deduction shall be made in respect of expenses or any other matter.

    • (c) Where this subsection applies the following shall be treated as nil for the purposes of the Income Tax Acts—

      • (i) the profits or gains of the year of assessment, and

      • (ii) the losses of any such year of assessment, in respect of relevant sums arising to an individual.

    • (d) Where an individual has relevant sums chargeable to income tax under Case V of Schedule D and an election under subsection (3)(a) has not been made, an allowance under section 284, which would on due claim being made be granted, shall be deemed to have been granted.

  • (3)

    • (a) Subsection (2) shall not apply for a year of assessment if an individual so elects by notice in writing to the inspector on or before the specified return date for the chargeable period (within the meaning of section 950).

    • (b) An election under this subsection shall have effect only for the year of assessment for which it is made.

  • (4) The provisions of the Income Tax Acts relating to the making of returns shall apply as if this section had not been enacted.

  • (5) Subject to subsections (6) and (7), the limit of an individual referred to in subsection (2) is £6,000.

  • (6) As respects the year of assessment 2001 the limit referred to in subsection (5) is £4,440.

  • (7) Where relevant sums arise to more than one individual in respect of a qualifying residence the limits referred to in subsections (5) and (6) shall be divided by the number of such individuals.

  • (8) Where subsection (2) applies, the receipt of relevant sums shall not operate so as to restrict or reduce any entitlement to relief under section 244 or 604.”.

  • (2) Section 216A (inserted by subsection (1)) of the Principal Act is amended as respects the year of assessment 2002 and subsequent years of assessment—
  • (a) in subsection (5) by the substitution of “€7,620” for “£6,000”, and
  • (b) by the deletion of subsection (6).

Chapter 3 Income Tax, Corporation Tax and Capital Gains Tax

33 Special savings incentive accounts.

33.—(1) The Principal Act is amended by the insertion after Part 36 of the following:
“PART 36A Special savings incentive accounts
Interpretation. 848B.—(1) In this Part— ‘deposit account’ means an account beneficially owned by an individual, which is— (a) an account into which a deposit (within the meaning of section 256(1)) is made, or (b) an account with a relevant European institution into which repayable funds are lodged; ‘investment undertaking’ has the meaning assigned to it in section 739B and ‘units in an investment undertaking’ shall be construed accordingly; ‘PPS Number’, in relation to an individual, means that individual's Personal Public Service Number within the meaning of section 223 of the Social Welfare (Consolidation) Act, 1993; ‘qualifying assets’, subject to section 848G, means— (a) deposit accounts, (b) shares within the meaning of section 2(1) of the Credit Union Act, 1997, (c) units in an investment undertaking, (d) units in, or shares of, a relevant UCITS, (e) relevant life assurance policies, (f) shares issued by a company, wherever incorporated, officially listed on a recognised stock exchange, and (g) securities issued by or on behalf of a government; ‘qualifying individual’ means an individual who at the time of opening a special savings incentive account— (a) is 18 years of age, or older, and (b) is resident in the State; ‘qualifying savings manager’ means— (a) a person who is a holder of a licence granted under section 9 of the Central Bank Act, 1971, or a person who holds a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under that section, (b) a building society within the meaning of section 256, (c) a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989, (d) ACC Bank plc, (e) the Post Office Savings Bank, (f) a credit union within the meaning of the Credit Union Act, 1997, (g) an investment undertaking, (h) the holder of— (i) an authorisation issued by the Minister for Enterprise, Trade and Employment under the European Communities (Life Assurance) Regulations of 1984 (S.I. No. 57 of 1984), as amended, or, (ii) an authorisation granted by the authority charged by law with the duty of supervising the activities of insurance undertakings in a Member State of the European Communities, other than the State, in accordance with Article 6 of Directive No. 79/267/EEC1, who is carrying on the business of life assurance in the State, or (iii) an official authorisation to undertake insurance in Iceland, Liechtenstein and Norway pursuant to the EEA Agreement within the meaning of the European Communities (Amendment) Act, 1993, and who is carrying on the business of life assurance in the State, (i) a person which is an authorised member firm of the Irish Stock Exchange, within the meaning of the Stock Exchange Act, 1995, or a member firm (which carries on a trade in the State through a branch or agency) of a stock exchange of any other Member State of the European Communities, (j) a firm approved under section 10 of the Investment Intermediaries Act, 1995, which is authorised to hold client money, other than a firm authorised as a Restricted Activity Investment Product Intermediary, where the firm's authorisation permits it to engage in the proposed activities, or a business firm which has been authorised to provide similar investment business services under the laws of a Member State of the European Communities which correspond to that Act, or (k) the Minister for Finance, acting through the Agency (within the meaning of section (1) of the National Treasury Management Agency Act, 1990); ‘relevant European institution’ means an institution which is a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations, 1992 (S.I. No. 395 of 1992)) which has been authorised by the Central Bank of Ireland to carry on business of a credit institution in accordance with the provisions of the supervisory enactments (within the meaning of those Regulations); ‘relevant UCITS’ means a UCITS situated in a Member State of the European Communities, other than the State, which has been authorised by the competent authorities of the Member State in which it is situated; ‘relevant life assurance policy’ means a policy of assurance which satisfies the conditions specified in subsection (3); ‘special savings incentive account’ has the meaning assigned to it in section 848C; ‘tax credit’, in relation to a subscription, has the meaning assigned to it in section 848D(1); ‘UCITS’ means undertakings for collective investment in transferable securities within the meaning of Article 1 of Council Directive 85/6112 and references to— (a) ‘the Member State in which UCITS is situated’ and (b) a UCITS which has been ‘authorised by the competent authorities of the Member State in which it is situated’, shall have the same meanings as in Articles 3 and 4 respectively of that Directive; ‘units in, or shares of, a relevant UCITS’ means the rights or interests (however described) of the holder of units or shares in that relevant UCITS. (2) Nothing in this Part shall be construed as authorising or permitting a person who is a qualifying savings manager to provide any services which that person would not otherwise be authorised or permitted to provide in the State. (3) The conditions referred to in the definition of ‘relevant life assurance policy’ in subsection (1) are that the policy of assurance is on the life of a person who beneficially owns the policy, and that the terms and conditions of the policy provide— (a) for an express prohibition of any transfer of the policy, or the rights conferred by the policy or any share or interest in the policy or rights respectively, other than the cash proceeds from the termination of the policy or a partial surrender of the rights conferred by the policy, to that person, (b) the policy, the rights conferred by the policy and any share or interest in the policy or rights respectively, shall not be capable of assignment, other than that the proceeds on the termination of the policy (other than on the death of the policyholder) may be transferred from a qualifying savings manager to another qualifying savings manager in accordance with the provisions of this Part, and (c) the policy is not issued in the course of annuity business or pension business, within the meaning of section 706.
Special savings incentive account. 848C.—A special savings incentive account is a scheme of investment commenced on or after 1 May 2001 and on or before 30 April 2002 by a qualifying individual with a qualifying savings manager (who is registered in accordance with section 848R) under terms which include the following— (a) apart from tax credits, in relation to subscriptions, subscribed by the qualifying savings manager under section 848E(1)(b)(ii) only the qualifying individual, or the spouse of that individual, may subscribe to the account, (b) such subscriptions are funded by the qualifying individual, or the spouse of that individual, from funds available to either or both of them out of their own resources without recourse to borrowing, or the deferral of repayment (whether in respect of capital or interest) of sums already borrowed, (c) subject to paragraph (d), such subscriptions, ignoring any amounts withdrawn from the account by the qualifying individual— (i) in the month the account is commenced and in each of the 11 months immediately after that month, are of an amount agreed between the qualifying individual and the qualifying savings manager when the account is commenced, which amount shall not be less than £10, and (ii) in any one month, do not exceed £200, (d) such subscriptions, made in the month which is the month in which the fifth anniversary of the day of commencing the account falls, or thereafter, shall not be subscriptions for the purposes of section 848D, (e) such subscriptions and tax credits, in relation to such subscriptions, are to be used, and used only, by the qualifying savings manager to acquire qualifying assets which— (i) are held in the account and managed by the qualifying savings manager, and (ii) are beneficially owned by the qualifying individual, (f) all or any of the qualifying assets can not be assigned or otherwise pledged, as security for a loan, (g) on commencing the account, the qualifying individual makes a declaration of a kind referred to in section 848F, (h) for the account to be treated as maturing (otherwise than in respect of the death of the qualifying individual) in accordance with section 848H(1), the qualifying individual shall make a declaration of a kind referred to in section 848I within the period commencing 60 days before and ending 30 days after the fifth anniversary of the commencement of the account, (i) that at the request of the qualifying individual, and within such time as shall be agreed, the account, with all rights and obligations of the parties thereto may be transferred to another qualifying savings manager in accordance with the provisions of this Part, (j) that the qualifying savings manager will notify the qualifying individual if he or she ceases to be a qualifying savings manager, or ceases to be registered in accordance with section 848R, and (k) that the qualifying savings manager will take reasonable measures— (i) to establish that the PPS Number, contained in the declaration referred to in paragraph (g), made by a qualifying individual, is the PPS Number in relation to that individual, and (ii) to ensure that the terms, provided for in this section, under which the account is commenced are and continue to be complied with, and (l) that the qualifying savings manager will retain a copy of all material used to establish the correctness of each PPS Number contained in a declaration in accordance with paragraph (k)(i), for so long as the declaration is required to be retained under section 848R(11) and on being so required by an inspector, will make such material available for inspection.
Tax credits. 848D.—Where a qualifying individual, or the spouse of that individual, subscribes to a special savings incentive account— (a) the qualifying individual shall be treated, for the purposes of the Tax Acts, as having paid a grossed up amount, which amount, after deducting income tax at the standard rate for the year of assessment 2001, leaves the amount of the subscription, and (b) the qualifying individual shall be entitled to be credited with the amount of income tax (in this Part referred to as the ‘tax credit’, in relation to the subscription) treated as having been so deducted, in accordance with the provisions of this Part and not under any other provision of the Tax Acts.
Payment of tax credit. 848E.—(1) Where a qualifying individual subscribes to a special savings incentive account, and the qualifying savings manager of that account complies with the provisions of section 848P in relation to that subscription— (a) the Revenue Commissioners shall, subject to that section, pay to the qualifying savings manager the tax credit in relation to that subscription, and (b) that tax credit shall— (i) be beneficially owned by the qualifying individual, and (ii) on receipt, be immediately subscribed by the qualifying savings manager to the special savings incentive account. (2) Subject to this Part, exemption from income tax and capital gains tax shall be allowed in respect of the income and chargeable gains arising in respect of qualifying assets held in a special savings incentive account. (3) A deposit (within the meaning of section 256(1)) made to a deposit account which is a qualifying asset, shall not be a relevant deposit (within the meaning of that section) for the purposes of Chapter 4 of Part 8. (4) Notwithstanding subsection (2), where in a year of assessment an individual commences a special savings incentive account, the individual is obliged to include in a return, required to be delivered by the individual under section 951, or as the case may be, section 879, in respect of that year of assessment, a statement to the effect that the individual has commenced such an account.
Declaration on commencement. 848F.—The declaration referred to in section 848C(g) is a declaration in writing made by the qualifying individual to the qualifying savings manager which— (a) is made and signed by the qualifying individual, (b) is made in such form— (i) as may be prescribed or authorised by the Revenue Commissioners, and (ii) which contains a reference to the offence of making a false declaration under section 848T, (c) contains the qualifying individual's— (i) name, (ii) address of his or her permanent residence, (iii) PPS Number, and (iv) date of birth, (d) declares at the time the declaration is made, that the qualifying individual— (i) is resident in the State, (ii) has not commenced another special savings incentive account, (iii) is the person who will beneficially own the qualifying assets to be held in the account, (iv) will subscribe to the account from funds available to him or her, or his or her spouse, from their own resources, without recourse to borrowing, or the deferral of repayment (whether in respect of capital or interest) of sums already borrowed, and (v) will not assign or otherwise pledge qualifying assets to be held in the account as security for a loan, and (e) contains an undertaking that if at any time the declaration ceases to be materially correct, the qualifying individual will advise the qualifying savings manager accordingly.
Acquisition of qualifying assets. 848G.—(1) Qualifying assets held in a special savings incentive account, managed by a qualifying savings manager and beneficially owned by a qualifying individual may not at any time— (a) be purchased (or otherwise acquired) by the qualifying savings manager, otherwise than— (i) out of money which the qualifying savings manager holds in the account, and (ii) by way of a bargain made at arm's length, (b) be purchased from the qualifying individual or any person connected with that individual (within the meaning of section 10), or (c) be connected with any other asset or liability of the qualifying individual or any other person connected with that individual (within the meaning of section 10) and for this purpose a qualifying asset is connected with another asset or a liability if the terms under which either asset or the liability is acquired and held would be different if the qualifying asset, the other asset or the liability, had not been acquired and held. (2) Shares fulfil the condition as to official listing in paragraph (f) of the definition of ‘qualifying assets’ in section 848B(1) if in pursuance of a public offer, a qualifying savings manager applies for the allotment or allocation to him or her of shares in a company which are due to be admitted to such listing within 30 days of the allocation or allotment, and which, when admitted to such a listing, would be qualifying assets.
Termination of special savings incentive account. 848H.—(1) A special savings incentive account is treated as maturing— (a) 30 days after the fifth anniversary of the end of the month in which a subscription was first made to the account where the qualifying individual has made a declaration of a kind referred to in section 848I, or, (b) on the day of the death of the qualifying individual, whichever event first occurs. (2) A special savings incentive account is treated as ceasing, where at any time before the account is treated as maturing— (a) any of the terms referred to in section 848C are not complied with, or (b) the qualifying individual is neither resident nor ordinarily resident in the State. (3) Where a special savings incentive account is treated as maturing or ceasing— (a) the account thereafter shall not be a special savings incentive account for the purposes of section 848E, and (b) the assets remaining in the account after having regard to all liabilities to tax on gains treated as accruing to the account under this Part shall— (i) where the assets are shares, securities, or units in, or shares of, a relevant UCITS, be treated for the purposes of the Capital Gains Tax Acts, as having been acquired by the qualifying individual at their then market value at that time, (ii) where the asset is a relevant life assurance policy, be treated as if it were a policy commenced at that time and in respect of which premiums in an amount equal to the market value of the policy at that time had been paid at that time, for the purposes of Chapter 5 of Part 26, and (iii) where the asset is units in an investment undertaking, be treated as if the units had been acquired at that time, for their market value at that time, for the purposes of Chapter IA of Part 27.
Declaration on maturity. 848I.—The declaration referred to in section 848C(h) is a declaration in writing made by the qualifying individual to the qualifying savings manager which— (a) is made and signed by the qualifying individual, (b) is made in such form— (i) as may be prescribed or authorised by the Revenue Commissioners, and (ii) which contains a reference to the offence of making a false declaration under section 848T, (c) contains the qualifying individual's— (i) name, (ii) address of his or her permanent residence, (iii) PPS Number, and (iv) date of birth, (d) declares that at all times in the period from which the account was commenced until the date the declaration is made, the qualifying individual— (i) was the beneficial owner of the qualifying assets held in the account, (ii) had only one special savings incentive account, (iii) was resident or ordinarily resident in the State, (iv) subscribed to the account from funds available to the qualifying individual or his or her spouse without recourse to borrowing, or the deferral of repayment (whether of capital or interest) of sums borrowed when the account was commenced, and (v) did not assign or otherwise pledge qualifying assets held in the account as security for a loan.
Gain on maturity. 848J.—(1) On the day on which a special savings incentive account is treated as maturing, a gain shall be treated as accruing on the account in an amount determined under subsection (2). (2) The amount of the gain referred to in subsection (1) is an amount equal to the aggregate market value of all assets (including cash) held in the account on the day the account is treated as maturing, less the sum of all subscriptions (including subscriptions made by the qualifying savings manager under section 848E(1)(b)(ii)), made to the account on or before that day to the extent that they have not previously been treated, in accordance with subsection (3), as having been withdrawn from the account. (3) For the purposes of subsection (2) where there is a withdrawal from an account, the amount withdrawn (before being reduced by any tax liability arising under this Part in respect of any gain treated as accruing to the account as a result of the withdrawal) shall be treated as a withdrawal of subscriptions to the extent that the amount withdrawn does not exceed the total amount of subscriptions (including subscriptions made by the qualifying savings manager in accordance with section 848E(1)(b)(ii)) made to the account since commencement, reduced by the amount of such subscriptions previously treated as subscriptions withdrawn from the account under this subsection. (4) For the purposes of subsection (3) where there is a withdrawal of assets (other than cash) from an account the amount withdrawn shall be the amount which is the market value of those assets at the time of their withdrawal.
Gain on cessation. 848K.—(1) On the day on which a special savings incentive account is treated as ceasing, a gain shall be treated as accruing on the account in an amount determined under subsection (2). (2) The amount of the gain referred to in subsection (1) is an amount equal to the aggregate market value of all assets (including cash) held in the account on the day the account is treated as ceasing.
Gain on withdrawal. 848L.—(1) Where before a special savings incentive account is treated as maturing or ceasing (as the case may be) a qualifying individual withdraws cash or other assets from the account, a gain shall be treated as accruing on the account in an amount determined under subsection (2). (2) The amount of the gain referred to in subsection (1) is— (a) where the withdrawal is in cash, the amount of that cash, and (b) where the withdrawal is of assets (other than cash) an amount equal to the market value of such assets on the day of withdrawal.
Taxation of gains. 848M.—(1) A qualifying savings manager shall be liable to tax (in this Part referred to as ‘relevant tax’) on a gain treated under this Part as accruing to a special savings incentive account in an amount equal to 23 per cent of the amount of that gain. (2) A qualifying savings manager who becomes liable under subsection (1) to an amount of relevant tax shall be entitled to withdraw sufficient funds from the account to which the gain is treated as accruing to satisfy that liability and the qualifying individual shall allow such withdrawal; but where there are no funds or insufficient funds available in the account out of which the qualifying savings manager may satisfy, or fully satisfy, such liability, the amount of relevant tax for which there are insufficient funds so available shall be a debt due to the qualifying savings manager from the qualifying individual. (3) Subject to section 848P, the relevant tax in respect of a gain which in accordance with that section, is required to be included in a return, shall be due at the time by which the return is to be made and shall be paid by the qualifying fund manager without the making of an assessment; but relevant tax which has become so due may be assessed on the qualifying savings manager (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date. (4) Where it appears to the inspector that there is any amount of relevant tax which ought to have been, but has not been, included in a return, or where the inspector is dissatisfied with any return, the inspector may make an assessment on the qualifying savings manager to the best of his or their judgment, and any amount of relevant tax due under an assessment made by virtue of this subsection shall be treated for the purposes of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made. (5) (a) Any relevant tax assessed on a qualifying savings manager under this Chapter shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under subsection (3)) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under subsection (3). (b) On the determination of an appeal against an assessment under this section any relevant tax overpaid shall be repaid. (6) (a) The provisions of the Income Tax Acts relating to— (i) assessments to income tax, (ii) appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and (iii) the collection and recovery of income tax, shall, in so far as they are applicable, apply to the assessment, collection and recovery of relevant tax. (b) Any amount of relevant tax payable in accordance with this Part without the making of an assessment shall carry interest at the rate of 1 per cent for each month or part of a month from the date when the amount becomes due and payable. (c) Subsections (2) to (4) of section 1080 shall apply in relation to interest payable under paragraph (b) as they apply in relation to interest payable under section 1080. (d) In its application to any relevant tax charged by any assessment made in accordance with this section, section 1080 shall apply as if subsection (1)(b) of that section were deleted.
Transfer of special savings incentive account. 848N.—(1) Where arrangements are made by a qualifying individual to transfer his or her special savings incentive account from one qualifying savings manager (in this section referred to as the ‘transferor’) to another qualifying savings manager (in this section referred to as the ‘transferee’) or the account is transferred in consequence of the transferor ceasing to act or to be a qualifying savings manager, the following provisions of this section shall apply. (2) Where a transfer takes place under subsection (1)— (a) all subscriptions to the special savings incentive account in so far as they have not been applied to acquire qualifying assets, and all qualifying assets in the account, must be made to a single transferee, (b) the qualifying individual shall make a declaration of a kind referred to in section 848O to the transferee, and (c) the transferee shall thereafter for the purposes of this Part be the qualifying savings manager of the special savings incentive account transferred. (3) The transferor shall within 30 days after the date of transfer— (a) give to the transferee a notice containing the information specified in subsection (4) and the declaration specified in subsection (5), and (b) pay to the transferee the aggregate of the amounts referred to in subsection (4)(b)(vi). (4) The information referred to in subsection (3) is— (a) as regards the qualifying individual his or her— (i) name, (ii) address of permanent residence, (iii) date of birth, (iv) PPS Number, and (b) as respects the special savings incentive account transferred pursuant to this section— (i) the date of transfer, (ii) the date the account was commenced, (iii) the identification of the assets held in the account, (iv) the total of all subscriptions made to the account by the qualifying individual, or the spouse of that individual, (v) the total of all tax credits, in relation to subscriptions, subscribed to the account, (vi) the amount of any dividends, and other amounts payable in respect of qualifying assets held in the account and amounts of tax credits, which have not been received by the transferor at the date of transfer, and (vii) the amount of each withdrawal from the account and the date of each such withdrawal. (5) The declaration referred to in subsection (3) is a declaration in writing made and signed by the transferor to the effect that— (a) the transferor has fulfilled all obligations under this Part, (b) the transferor has transferred to the transferee all money and qualifying assets held in the account and that where registration of any such transfer is required, the transferor has taken the necessary steps to ensure that those qualifying assets can be registered in the name of the transferee, and (c) that, to the best of the qualifying savings manager's knowledge and belief, the information contained in the notice referred to in subsection (3) is correct. (6) Notwithstanding section 848C, where a special savings incentive account is being transferred in accordance with this section it shall not be treated as ceasing should, during the period of the transfer, the qualifying assets held in the account, temporarily cease to be managed by a qualifying savings manager, or a qualifying savings manager who is registered in accordance with section 848R.
Declaration on transfer. 848O.—The declaration referred to in section 848N(2)(b) is a declaration in writing made by the qualifying individual to the qualifying savings manager who is the transferee referred to in that section, which— (a) is made and signed by the qualifying individual, (b) is made in such form— (i) as may be prescribed or authorised by the Revenue Commissioners, and (ii) which contains a reference to the offence of making a false declaration under section 848T. (c) contains the qualifying individual's— (i) name, (ii) address of his or her permanent residence, (iii) PPS Number, and (iv) date of birth, and (d) declares— (i) at the time the declaration is made, that the qualifying individual— (I) has not commenced another special savings incentive account, and (II) is the person who beneficially owns the qualifying assets held in the account being transferred, (ii) at the time the special savings incentive account was commenced, the qualifying individual was resident in the State, (iii) that subscriptions to the account have been and will continue to be made from funds available to him or her, or his or her spouse, out of their own resources without recourse to borrowing, or the deferral of repayment (whether in respect of capital or interest) of sums borrowed when the account was commenced, and (iv) has not and will not assign or otherwise pledge qualifying assets held in the account as security for a loan.
Monthly returns. 848P.—A qualifying savings manager who is or was registered in accordance with section 848R, shall, within 15 days of the end of every month, make a return (including, where it is the case, a nil return) to the Revenue Commissioners, which— (a) specifies in respect of all special savings incentive accounts managed by the qualifying savings manager in that month— (i) the aggregate amount of tax credits, in relation to the aggregate of subscriptions made to those accounts in that month, (ii) the aggregate amount of relevant tax to which the qualifying savings manager is liable in respect of gains treated as accuring on those accounts in that month, and (iii) the net amount (being the difference between the amounts specified in paragraphs (a) and (b)) due from or, as the case may be, to, the Revenue Commissioners, and (b) contains a declaration in a form prescribed or authorised by the Revenue Commissioners that, to the best of the qualifying savings manager's knowledge and belief, the information referred to in paragraph (a) is correct.
Annual returns. 848Q.—A qualifying savings manager who is or was registered in accordance with section 848R shall in respect of each year of assessment, on or before 28 February in the year following the year of assessment, make a return (including, where it is the case, a nil return), to the Revenue Commissioners which in respect of the year of assessment— (a) specifies in respect of each special incentive savings account managed by the qualifying savings manager— (i) the name of the qualifying individual, (ii) the address of that individual's permanent residence, (iii) the PPS Number of the individual, (iv) the date the account was commenced, (v) the total amount of subscriptions made by the qualifying individual, or the spouse of that individual, to the account, (vi) the total amount of tax credits, in respect of subscriptions, subscribed to the account, and (vii) in respect of each gain accuring on the account— (I) the amount of relevant tax to which the qualifying savings manager has thereby become liable, and (II) whether the gain accrued under section 848J, 848K or 848L. and (b) containing a declaration, in a form prescribed or authorised by the Revenue Commissioners, that to the best of the qualifying savings manager's knowledge and belief— (i) in respect of each special savings incentive account referred to in the return, the terms referred to in section 848C have been and are being complied with, and (ii) the information referred to in paragraph (a) and the declaration referred to in subparagraph (i) is correct.
Registration etc. 848R.—(1) A person can not be a qualifying savings manager unless the person is included in a register maintained by the Revenue Commissioners of persons registered in accordance with subsection (5). (2) Where at any time a qualifying savings manager does not have a branch or business establishment in the State, or has such a branch or business establishment but does not intend to carry out all the functions as a qualifying savings manager at that branch or business establishment, the qualifying savings manager shall not be registered in accordance with subsection (5) unless the qualifying savings manager appoints for the time being a person, who— (a) where an individual, is resident in the State, and (b) where not an individual, has a business establishment in the State, to be responsible for securing the discharge of the obligations which fall to be discharged by the qualifying savings manager under this Part, and advises the Revenue Commissioners of the identity of that person and the fact of that person's appointment. (3) Where a person has been appointed in accordance with subsection (2), and subject to subsection (4) that person shall— (a) be entitled to act on the qualifying savings manager's behalf for any of the purposes of the provisions of this Part, (b) shall secure (where appropriate by acting on the qualifying savings manager's behalf) the qualifying savings manager's compliance with and discharge of the obligations under this Part, and (c) shall be personally liable in respect of any failure of the qualifying savings manager to comply with or discharge any such obligations as if the obligations imposed on the qualifying savings manager were imposed jointly and severally on the qualifying savings manager and the person concerned. (4) The appointment of a person in accordance with subsection (2) shall be treated as terminated in circumstances where— (a) the Revenue Commissioners have reason to believe that the person concerned— (i) has failed to secure the discharge of any of the obligations imposed on a qualifying savings manager under this Part, or (ii) does not have adequate resources to discharge those obligations, and (b) the Revenue Commissioners have notified the qualifying savings manager and that person that they propose to treat the appointment of that person as having terminated with effect from the date of the notice. (5) If the Revenue Commissioners are satisfied that an applicant for registration is entitled to be registered, they shall register the applicant with effect from such date as may be specified by them. (6) If it appears to the Revenue Commissioners at any time that a qualifying savings manager who is registered under this section— (a) would not be entitled to be registered if it applied for registration at that time, or (b) has not complied with the provisions of this Part, the Revenue Commissioners may, by written notice given to the qualifying savings manager, cancel its registration with effect from such date as may be specified in the notice. (7) Any qualifying savings manager who is aggrieved by the failure of the Revenue Commissioners to register it or by the cancellation of its registration, may, by notice given to the Revenue Commissioners before the end of the period of 30 days beginning with the date on which the qualifying savings manager was notified of the Revenue Commissioners decision, require the matter to be determined by the Appeal Commissioners and the Appeal Commissioners shall hear and determine the matter in like manner as an appeal. (8) A qualifying savings manager shall give notice to the Revenue Commissioners and the qualifying individuals whose special savings incentive accounts he or she manages of his or her intention to cease to act as the qualifying savings manager not less than 30 days before he or she so ceases so that his or her obligations to the Revenue Commissioners can be conveniently discharged at or about the time he or she ceases to so act, and the notice to the qualifying individuals shall inform them of their right to transfer their special savings incentive accounts under section 848N. (9) Subject to subsection (10), every return to be made by a qualifying savings manager under section 848P and 848Q shall be made in electronic format approved by the Revenue Commissioners and shall be accompanied by a declaration made by the qualifying savings manager, in a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct. (10) Where the Revenue Commissioners are satisfied that a qualifying savings manager does not have the facilities to make a return under section 848P or 848Q in the format referred to in subsection (9), such returns 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 qualifying savings manager, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct. (11) A qualifying savings manager shall retain— (a) in respect of each special savings incentive account which is treated as maturing, the declarations of a kind referred to in sections 848F, 848I and 848O for a period of 3 years after the date on which the account was treated as maturing, and (b) in respect of each special savings incentive account which is treated as ceasing, the declarations of a kind referred to in sections 848F and 848O for a period of 3 years after the date on which the account was treated as ceasing, and on being so required by notice given to him or her in writing by an inspector, make available for inspection all or any such declarations.
Regulations. 848S.—(1) The Revenue Commissioners shall make regulations providing generally as to the administration of this Part and those regulations may, in particular and without prejudice to the generality of the foregoing include provisions— (a) as to the manner in which a qualifying savings manager is to register under section 848R, (b) as to the manner in which a return is to be made under section 848P, (c) as to the manner in which a return is to be made under section 848Q, (d) as to the manner in which tax credits are to be paid under section 848E(1), or the net amount referred to in section 848P(a)(iii), (e) as to the circumstances in which the Revenue Commissioners may require a qualifying savings manager to give a bond or guarantee to the Revenue Commissioners which is sufficient to indemnify the Commissioners against any loss arising by virtue of the fraud or negligence of the qualifying savings manager in relation to the operation of the provisions of this Part, and (f) as to the manner in which a qualifying savings manager ensures compliance with the terms of special savings incentive accounts provided for in section 848C. (2) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly but without prejudice to the validity of anything previously done thereunder.
Offences. 848T.—A person who makes a declaration under section 848F, section 848I, section 848O or section 848N(5) which is false, shall be guilty of an offence and shall be liable on summary conviction to a fine of £1,500, or, at the discretion of the court, to imprisonment for a term not exceeding 6 months or to both the fine and the imprisonment.
Disclosure of information. 848U.—Notwithstanding any obligation as to secrecy or other restriction upon disclosure of information imposed by or under statute or otherwise, where a qualifying savings manager has reasonable grounds to suspect that the terms, provided for under section 848C, under which a special savings incentive account was commenced, are not being complied with, the qualifying savings manager shall inform the Revenue Commissioners accordingly.”.
  • (2)
  • (a) The Principal Act is amended in Part 36A (inserted by subsection (1))—
  • (i) in section 848C(b)(i) by the substitution of “€12.50” for “£10”,
  • (ii) in section 848C(b)(ii) by the substitution of “€254” for “£200”, and
  • (iii) in section 848T by the substitution of “€1,900” for “£1,500”.
  • (b) This subsection shall apply as on and from 1 January 2002.

34 Amendment of section 97 (computational rules and allowable deductions) of Principal Act.

34.—Section 97 (as amended by the Finance (No. 2) Act, 1998) of the Principal Act is amended—

  • (a) in subsection (2B)—
  • (i) by the substitution in paragraph (d) for “1997, or” of “1997,”,
  • (ii) by the substitution in paragraph (e) for “during the year.” of “during the year, or”, and
  • (iii) by the insertion of the following after paragraph (e):
  • “(f) in the purchase, improvement or repair of a premises which complies with the conditions of subsection (2F).”,

and

  • (b) by the insertion of the following after subsection (2E):

  • “(2F)

    • (a) The conditions of this subsection are—

      • (i) the premises was converted into multiple residential units prior to 1 October 1964,

      • (ii) the premises was acquired by the chargeable person under a contract which was evidenced in writing on or after 5 January 2001,

      • (iii) subsequent to the acquisition by the chargeable person of the premises, the number of residential units is not, subject to subparagraph (iv), reduced to less than 50 per cent of the total number of residential units contained in the premises at date of acquisition,

      • (iv) the premises consists throughout the year of a minimum of 3 residential units,

      • (v) at all times during the year (except for reasonable periods of temporary disuse between the ending of one lease and the commencement of another lease) not less than 50 per cent of the residential units in the premises are let under a lease where the lesses in the case of each such letting is either—

        • (I) a local authority, or a person nominated by a local authority under an agreement in writing between the lessor and that local authority, or

        • (II) a person who, at the commencement of the tenancy, is entitled to a payment under section 179 of the Social Welfare (Consolidation) Act, 1993, in respect of rent,

        and

      • (vi) all the requirements of the following Regulations—

        • (I) the Housing (Standards for Rented Houses) Regulations, 1993 (S.I. No. 147 of 1993),

        • (II) the Housing (Rent Books) Regulations, 1993 (S.I. No. 146 of 1993), and

        • (III) the Housing (Registration of Rented Houses) Regulations, 1996 (S.I. No. 30 of 1996), as amended by the Housing (Registration of Rented Houses) (Amendment) Regulations, 2000 (S.I. No. 12 of 2000),

        are complied with in relation to the premises throughout the year,

        and

    • (b) in this subsection—

    ‘local authority’, in relation to a premises, means the council of a country or the corporation of a country or other borough or, where appropriate, the council of an urban district in whose functional area the premises is located; ‘residential unit’ means a separately contained part of a residential premises used or suitable for use as a dwelling.”.

35 Amendment of section 177 (conditions as to residence and period of ownership) of Principal Act.

35.—As respects a redemption, repayment or purchase of its own shares by a company to which section 176 applies on or after 15 February 2001, section 177 of the Principal Act is amended by the substitution of the following for subsection (6):

  • “(6) The shares shall have been owned by the vendor throughout the period of—

    • (a) where the shares were appropriated to the vendor under an approved scheme (within the meaning of Chapter 1 of Part 17), and to which the provisions of subsections (4) to (7) of section 515 do not apply, 3 years, and

    • (b) in any other case, 5 years,

    ending on the date of redemption, repayment or purchase, as the case may be.”.

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

36.—(1) Section 198 of the Principal Act is amended in subsection (1)—

  • (a) by the substitution in the definition of “tax” in paragraph (a) for “corporation tax” of “income tax or corporation tax, as is appropriate,”,
  • (b) by the substitution in paragraph (b) for “company” of “person” in each place in which it occurs,
  • (c) by the deletion of “and” at the end of subparagraph (i) of paragraph (c),
  • (d) by the substitution in subparagraph (ii)(II) of paragraph (c) for “relevant territory,” of “relevant territory,” and by the insertion of “and” at the end of that subparagraph,
  • (e) by the insertion after subparagraph (ii) of paragraph (c) of the following:

  • “(iii) a person shall not be chargeable to income tax in respect of interest paid by a company if—

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

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

    and the interest is interest to which section 64(2) applies.”.

  • (2) This section shall apply as respects interest paid on or after the date of the passing of this Act.

37 Treatment of certain interest payments.

37.—(1) Part 8 of the Principal Act is amended—

  • (a) in section 243—
  • (i) by the insertion after subsection (1) of the following:
  • “(1A) For the purposes of this section, ‘bank’ includes building society within the meaning of section 256(1).”,

and

  • (ii) in subsection (5)(a)—
  • (I) in subparagraph (I) by the deletion of “or”, and
  • (II) by the substitution for subparagraph (II) of the following:

  • “(II) the interest is interest referred to in paragraph (a), (b) or (h) of section 246(3), or

  • (III) the interest is interest to which section 64(2) applies,”,

and

  • (b) in section 246(1)—
  • (i) by the substitution for the definitions of “a collective investment undertaking” and “collective investor” of the following:

“‘bank’ includes building society within the meaning of section 256(1);”

and

  • (ii) by the substitution for the definition of “relevant person” of the following:

“‘investment undertaking’ means—

  • (a) a unit trust mentioned in section 731(5)(a),

  • (b) a special investment scheme within the meaning given to it in section 737, or

  • (c) an investment undertaking within the meaning given to it in section 739B;

‘relevant person’ means—

  • (a) a company, or

  • (b) an investment undertaking;”.

  • (2) This section shall apply to interest paid on or after the date of passing of this Act.

38 Amendment of Part 20 (companies' chargeable gains) of Principal Act.

38.—(1) Part 20 of the Principal Act is amended—

  • (a) in section 615 as respects a disposal on or after 15 February 2001 by the substitution for subsection (2) of the following:

  • “(2)

    • (a) Subject to this section, where—

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

      • (ii) (I) the company acquiring the assets is resident in the State at the time of the acquisition, or the assets are chargeable assets in relation to that company immediately after that time, and

        • (II) the company from which the assets are acquired is resident in the State at the time of the acquisition, or the assets are chargeable assets in relation to that company immediately before that time,

        and

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

      then, in so far as relates to corporation tax on chargeable gains, both companies shall be treated as if any assets included in the transfer were acquired by the one company from the other company for a consideration of such amount as would secure that on the disposal by means of the transfer neither a gain nor a loss would accrue to the company making the disposal, and for the purposes of section 556 the acquiring company shall be treated as if the respective acquisitions of the assets by the other company had been the acquiring company's acquisition of the assets.

    • (b) For the purposes of paragraph (a)—

      • (i) an asset is a ‘chargeable asset’ in relation to a company at any time if, were the asset to be disposed of by the company at that time, any gain accruing to the company would be a chargeable gain, and

      • (ii) a reference to a company shall apply only to a company which, by virtue of the law of a Member State of the European Communities, is resident for the purposes of tax in such a Member State, and for this purpose ‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State.”,

  • (b) in section 616—
  • (i) in subsection (1)—
  • (I) by the substitution for paragraph (a) of the following:
  • “(a) subject to section 621(1), a reference to a company or companies shall apply only to a company or companies, as limited by subsection (2), being a company or, as the case may be, companies which, by virtue of the law of a Member State of the European Communities, is or are resident for the purposes of tax in such a Member State, and for this purpose ‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State, and references to a member or members of a group of companies shall be construed accordingly;”,
  • (II) in paragraph (e) by the substitution of “State;” for “State.”, and
  • (III) by the insertion after paragraph (e) of the following:
  • “(f) an asset is a ‘chargeable asset’ in relation to a company at any time if, were the asset to be disposed of by the company at that time, any gain accruing to the company would be a chargeable gain.”,

and

  • (ii) in subsection (2)(b), by the deletion of “(although resident in the State)”,
  • (c) in section 617 as respects a disposal on or after 15 February 2001 by the substitution for subsection (1) of the following:

  • “(1) Notwithstanding any provision in the Capital Gains Tax Acts fixing the amount of the consideration deemed to be received on a disposal or given on an acquisition, where—

    • (a) a member of a group of companies disposes of an asset to another member of the group,

    • (b) the company making the disposal is resident in the State at the time of the disposal or the asset is a chargeable asset in relation to that company immediately before that time, and

    • (c) the other company is resident in the State at the time of the disposal or the asset is a chargeable asset in relation to that company immediately after that time,

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

  • (d) in section 618 as respects an acquisition or disposal on or after 15 February 2001—
  • (i) by the substitution for subsection (1) of the following:

  • “(1) Where—

    • (a) a company which is a member of a group of companies acquires an asset as trading stock of a trade to which this section applies,

    • (b) the acquisition is from another company which is a member of the group, and

    • (c) the asset did not form part of the trading stock of any such trade carried on by the other company,

    the company acquiring the asset shall be treated for the purposes of section 596 as having acquired the asset otherwise than as trading stock and immediately appropriated it for the purposes of the trade as trading stock.”,

  • (ii) by the insertion in subsection (2) after “formed part of the trading stock of a trade” of “to which this section applies”, and
  • (iii) by the insertion after subsection (2) of the following:

  • “(3) This section applies to—

    • (a) a trade carried on by a company which is resident in the State, and

    • (b) a trade carried on in the State through a branch or agency by a company which is not so resident.”,

  • (e) in section 619 as respects an acquisition on or after 15 February 2001 in subsections (1) and (2) by the substitution of “in the course of a disposal to which section 617 applies” for “at a time when both were members of the group”,
  • (f) by the substitution for section 620 of the following:
“Replacement of business assets by members of group. 620.—(1) For the purposes of this section ‘old assets’ and ‘new assets’ have the same meanings as in section 597. (2) Subject to subsection (4), for the purposes of section 597 all the trades to which this section applies carried on by members of a group of companies shall be treated as a single trade (except in a case of one member of the group acquiring, or acquiring the interest in, the new assets from another member or disposing of, or disposing of the interest in, the old assets to another member). (3) This section applies to— (a) any trade carried on by a company which is resident in the State, and (b) any trade carried on in the State through a branch or agency of a company which is not so resident. (4) This section shall not apply unless— (a) the company disposing of the old assets is resident in the State at the time of the disposal, or the assets are chargeable assets in relation to that company immediately before that time, and (b) the company acquiring the new assets is resident in the State at the time of acquisition, or the assets are chargeable assets in relation to that company immediately after that time.”,
  • (g) by the insertion after section 620 of the following:
“Deemed disposal in certain circumstances. 620A.—(1) This section applies in relation to a company where— (a) at any time on or after 15 February 2001 an asset ceases to be a chargeable asset in relation to the company— (i) where at the time of the acquisition of the asset by the company the asset consisted of shares deriving their value or the greater part of their value from assets specified in paragraph (a) or (b) of section 29(3), by virtue of the assets ceasing to so derive their value or the greater part of their value, or (ii) by virtue of the asset becoming situated outside the State, and (b) (i) the company acquired the asset in the course of— (I) a transfer to which section 615 applies, or (II) a disposal to which section 617 applies, or (ii) by virtue of section 620 the asset constitutes new assets for the purposes of section 597. (2) Where this section applies in relation to a company, the company shall be deemed for the purposes of the Capital Gains Tax Acts and the Corporation Tax Acts— (a) to have disposed of the asset immediately before the time when it ceased to be a chargeable asset in relation to the company, and (b) immediately to have reacquired it, at its market value at that time.”,
  • (h) in section 621 as respects a case in which the depreciatory transaction (within the meaning of section 621) is on or after 15 February 2001 by the substitution for the definition of a group of companies of the following:

“a group of companies' may consist of companies some or all of which are not resident for the purposes of tax in a Member State of the European Communities.”,

  • (i) in section 623 as respects an asset acquired on or after 15 February 2001 by the substitution for subsection (2) of the following:

  • “(2) This section applies where—

    • (a) a company (in this section referred to as the ‘chargeable company’) which is a member of a group of companies acquires an asset from another company which at the time of acquisition was a member of the group.

    • (b) the chargeable company ceases to be a member of the group within the period of 10 years after the time of the acquisition,

    • (c) the chargeable company is resident in the State at the time of acquisition of the asset, or the asset is a chargeable asset in relation to that company immediately after that time, and

    • (d) the other company is resident in the State at the time of that acquisition, or the asset is a chargeable asset in relation to that company immediately before that time.”,

  • (j) in section 624(5) by the substitution of “a company which is not resident in a Member State of the European Communities” for “a company resident outside the State”, and
  • (k) in section 629(1) in the definition of “group” by the substitution of “a Member State of the European Communities” for “the State”.
  • (2)
  • (a) Except where the context otherwise requires and subject to paragraph (b), this section applies from 15 February 2001.
  • (b) (i) Subsection (1) (f) applies in relation to cases in which—
  • (I) either the disposal or acquisition is on or after 15 February 2001, or
  • (II) both the disposal and acquisition are on or after that date.
  • (ii) In a case to which subparagraph (i)(I) relates, any question of whether a company was, at the time of the acquisition or disposal corresponding to the disposal or acquisition referred to in that subparagraph, a member of a group shall be determined in accordance with section 616 as amended by subsection (1)(b).

39 Amendment of section 590 (attribution to participants of chargeable gains accruing to non-resident company) of Principal Act.

39.—(1) Section 590 of the Principal Act is amended in subsection (16)—

  • (a) in paragraph (b)(i) by the substitution of “section 617 (other than paragraphs (b) and (c) of subsection (1)), section 618 (with the omission of the words ‘to which this section applies’ in subsections (1)(a) and (2), of ‘such’ in subsection (1)(c) and of subsection (3)), section 619(2) (with the substitution for ‘in the course of a disposal to which section 617 applies’ of ‘at a time when both were members of the group’) and section 620(2) (with the omission of the words ‘to which this section applies’)” for “sections 617 to 620”,
  • (b) in paragraph (b)(ii) by the insertion after “section 623” of “(apart from paragraphs (c) and (d) of subsection (2))”.
  • (2) This section applies in cases in which section 617, 618, 619(2) or 620(2), as the case may be, have effect as amended by this Act.

40 Amendment of Schedule 18A (restriction on set-off of pre-entry losses) to Principal Act.

40.—(1) Schedule 18A to the Principal Act is amended in paragraph 1—

  • (a) in subparagraph (3) by the substitution of “at the time immediately before the relevant event occurred in relation to it by a company which is or was” for “by a company at the time immediately before the company became”,
  • (b) by the insertion after subparagraph (3) of the following:

  • “(3A)

    • (a) In this paragraph references to the relevant event occurring in relation to a company—

      • (i) in a case in which—

        • (I) the company was resident in the State at the time when it became a member of the relevant group, or

        • (II) the asset was a chargeable asset in relation to the company at that time,

        are references to the company becoming a member of that group;

      • (ii) in any other case, are references to whichever is the first of—

        • (I) the company becoming resident in the State, or

        • (II) the asset becoming a chargeable asset in relation to the company.

    • (b) For the purposes of paragraph (a), an asset is a ‘chargeable asset’ in relation to a company at any time if, were the asset to be disposed of by the company at that time, any gain accruing to the company would be a chargeable gain.”,

  • (c) in subparagraph (4)(a) by the substitution of “the relevant event occurred in relation to it” for “the company became a member of the relevant group”, and
  • (d) in subparagraph (5)—
  • (i) in the opening words by the substitution of “the relevant event occurred in relation to the company by reference to which that asset is a pre-entry asset” for “the company by reference to which the asset is a pre-entry asset became a member of the relevant group”,
  • (ii) in clause (a) by the substitution of “a relevant event has occurred in relation to a company” for “a company has become a member of the relevant group”, and
  • (iii) in clause (b) by the substitution of “a relevant event occurred in relation to a company” for “a company became a member of the relevant group”.
  • (2)
  • (a) This section applies in relation to—
  • (i) where chargeable gains are to be included in a company's total profits, the amount to be included in respect of chargeable gains in the company's total profits for any accounting period ending on or after 15 February 2001, and
  • (ii) in any other case, the amount on which a company is chargeable in accordance with section 31 for the year of assessment 2000-2001 and any subsequent year of assessment.
  • (b) For the purposes of this section, any question whether a company was, in relation to any time before 15 February 2001, a member of a group shall be determined by reference to the Principal Act before its amendment by this Act.

41 Amendment of Schedule 24 (relief from income tax and corporation tax by means of credit in respect of foreign tax) to Principal Act.

41.—(1) Schedule 24 of the Principal Act is amended—

  • (a) in paragraph 3 by the substitution for “Credit shall not be allowed” of “Subject to paragraphs 9A, 9B and 9C, credit shall not be allowed”,
  • (b) in paragraph 4(4)(e) by the insertion after “644B” of “by any fraction”,
  • (c) in paragraph 9A—
  • (i) in subparagraph (3) by the substitution for “company resident in the State” of “company falling within subparagraph (3A)”,
  • (ii) by the insertion after subparagraph (3) of the following subparagraph:

  • “(3A)

    • (a) A company falls within this subparagraph if—

      • (i) it is resident in the State, or

      • (ii) it is, by virtue of the law of a Member State of the European Communities other than the State, resident for the purposes of tax in such a Member State and the dividend referred to in subparagraph (3) forms part of the profits of a branch or agency of the company in the State.

    • (b) For the purposes of subparagraph (a)(ii), ‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State.”,

and

  • (iii) in subparagraph (4)(b) by the substitution for “company resident in the State” of “company falling within subparagraph (3A)”,
  • (d) in paragraph 9B—
  • (i) in subparagraph (1) by the substitution for “an Irish company” of “a company falling within subparagraph (1A) (in this paragraph referred to as the ‘relevant company’)”, and by the substitution for “the Irish company” of “the relevant company”,
  • (ii) by the insertion after subparagraph (1) of the following subparagraph:

  • “(1A)

    • (a) A company falls within this subparagraph if—

      • (i) it is resident in the State, or

      • (ii) it is, by virtue of the law of a Member State of the European Communities other than the State, resident for the purposes of tax in such a Member State and the dividend referred to in subparagraph (1) forms part of the profits of a branch or agency of the company in the State.

    • (b) For the purposes of subparagraph (a)(ii), ‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State.”,

  • (iii) in subparagraphs (2) and (3) by the substitution for “the Irish company” of “the relevant company”,
  • (iv) in subparagraph (4) by the substitution for “an Irish company” of “a relevant company”, and
  • (v) in subparagraph (5) by the deletion of the definition of “Irish company”,

and

  • (e) by the insertion after paragraph 9B, but in Part 2, of the following:

“9C.—(1) In this paragraph—

‘relevant company’ means a company which—

  • (a) is not resident in the State,

  • (b) is, by virtue of the law of a Member State of the European Communities other than the State, resident for the purposes of tax in such a Member State, and

  • (c) carries on a trade in the State through a branch or agency,

and for the purposes of subparagraph (b) of this definition ‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State;

‘relevant tax’ means foreign tax paid in respect of the income or chargeable gains of a branch or agency in the State of a relevant company, other than such tax paid in a territory in which the company is liable to tax by reason of domicile, residence, place of management or other similar criterion.

  • (2) A relevant company shall, as respects an accounting period, be entitled to such relief under this Schedule in respect of relevant tax as would, if the branch or agency in the State had been a company resident in the State, have been given under any arrangements to that company resident in the State.”.
  • (2) This section applies as respects accounting periods ending on or after 15 February 2001.

42 Amendment of section 89 (valuation of trading stock at discontinuance of trade) of Principal Act.

42.—(1) Section 89 of the Principal Act is amended—

  • (a) by the substitution in subsection (1) for paragraph (b) of the following:

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