Finance Act 2008

• “(6A)

  • (a) Where—

    • (i) the sale, insurance, salvage or compensation moneys consist of a payment or payments to a person under the scheme for compensation in respect of the decommissioning of fishing vessels implemented by the Minister for Agriculture, Fisheries and Food in accordance with Council Regulation (EC) No. 1198/2006 of 27 July 2006, and

    • (ii) on account of the receipt by the person of such payment or payments, a balancing charge is to be made on the person for any chargeable period other than by virtue of paragraph (b),

    then, the amount on which the balancing charge is to be made for that chargeable period shall be an amount equal to one-fifth of the amount (in this subsection referred to as ‘the original amount’) on which the balancing charge would but for this subsection have been made.

  • (b) Notwithstanding paragraph (a), there shall be made on the person for each of the 4 immediately succeeding chargeable periods a balancing charge, and the amount on which that charge is made for each of those periods shall be an amount equal to one-fifth of the original amount.”.

• (2) Subsection (1) comes into operation on the making of an order to that effect by the Minister for Finance.

31. Capital allowances and expenses for business cars.

31.— (1) The Principal Act is amended by inserting the following after Part 11:

“PART 11C

Emissions-based Limits on Capital Allowances and Expenses for Certain Road Vehicles

Interpretation and general (Part 11C).

380K.— (1) Subject to section 380P(1), this Part and not Part 11 shall apply to a vehicle which is a mechanically propelled road vehicle constructed or adapted for the carriage of passengers, other than a vehicle of a type not commonly used as a private vehicle and unsuitable to be so used.

• (2) Any reference in this Part to a vehicle in any of the vehicle Categories A to G as set out in the first column of the Table to this subsection is a reference to a vehicle whose CO 2 emissions, confirmed by reference to the relevant EC type approval certificate or EC certificate of conformity, are set out in the corresponding entry in the second column of the Table to this subsection.

TABLE

Vehicle Category	CO 2 Emissions (CO 2g/km)
A	0g/km up to and including 120g/km
B	More than 120g/km up to and including 140g/km
C	More than 140g/km up to and including 155g/km
D	More than 155g/km up to and including 170g/km
E	More than 170g/km up to and including 190g/km
F	More than 190g/km up to and including 225g/km
G	More than 225g/km

• (3) Where the Revenue Commissioners are not satisfied of the level of CO 2 emissions relating to a vehicle by reference to any document other than either of the certificates referred to in subsection (2), or where no document has been provided, the vehicle shall, for the purposes of this Part, be treated as if it were a vehicle in Category G.

• (4) In this Part—

‘ CO 2 emissions ’ means the level of carbon dioxide (CO 2) emissions for a vehicle measured in accordance with the provisions of Council Directive 80/1268/EEC of 16 December 1980 (as amended) and listed in Annex VIII of Council Directive 70/156/EEC of 6 February 1970 (as amended) and contained in the relevant EC type approval certificate or EC certificate of conformity or any other appropriate documentation which confirms compliance with any measures taken to give effect in the State to any act of the European Communities relating to the approximation of the laws of Member States in respect of type approval for the type of vehicle concerned;

‘ specified amount ’, in relation to expenditure incurred on the provision or hiring of a vehicle to which this Part applies, means €24,000, where the expenditure was incurred—

- (*a*) in an accounting period ending on or after 1 January 2007, or

- (*b*) in a basis period for a year of assessment where that basis period ends on or after 1 January 2007.

• (5) This Part shall be construed as one with Part 9.

Emissions-based limits for certain cars.

380L.— (1) In relation to a vehicle to which this Part applies, where an allowance which, apart from this section, would be made under section 284 is to be increased or reduced, as the case may be, by virtue of this section, any reference in the Tax Acts to an allowance made under section 284 shall be construed as a reference to that allowance as increased or reduced under this section.

• (2) In relation to a vehicle to which this Part applies, the allowances under section 284 to be taken into account for the purposes of Chapter 2 of Part 9 in computing the amount of expenditure still unallowed at any time shall be determined by reference to the allowances computed in accordance with this section, and the expenditure incurred on the provision of the vehicle to be taken into account for the purposes of that Chapter shall be determined accordingly.

• (3) Section 284 shall apply as if, for the purposes of that section, the actual cost of the vehicle were taken to be—

  • (a) in the case of a vehicle in Category A, B or C, an amount equal to the specified amount,

  • (b) in the case of a vehicle in Category D or E, where the retail price of the vehicle at the time it was made was—

    • (i) less than or equal to the specified amount, 50 per cent of that price, and

    • (ii) greater than the specified amount, 50 per cent of the specified amount,

    and

  • (c) in the case of a vehicle in Category F or G, nil.

• (4) Where expenditure has been incurred on the provision of a vehicle to which this Part applies, then any balancing allowance or balancing charge shall be computed, in a case where there are sale, insurance, salvage or compensation moneys, as if the amount of those moneys (or, where in consequence of any provision of the Taxes Acts, other than Part 11 or this section, some other amount is to be treated as the amount of those moneys, that other amount) were—

  • (a) in the case of a vehicle in Category A, B or C, increased or reduced, as the case may be, in the proportion which the specified amount bears to the actual amount of that expenditure,

  • (b) in the case of a vehicle in Category D or E where the expenditure incurred was—

    • (i) less than or equal to the specified amount, reduced by 50 per cent, and

    • (ii) greater than the specified amount, reduced in the proportion which 50 per cent of the specified amount bears to that actual amount of that expenditure,

    and

  • (c) in the case of a vehicle in Category F or G, nil.

• (5)

  • (a) Where expenditure is incurred on the provision of a vehicle to which this Part applies and—

    • (i) the person providing the vehicle (in this section referred to as the ‘prior owner’) sells the vehicle or gives it away so that subsection (5) of section 289, or that subsection as applied by subsection (6) of that section, applies in relation to the purchaser or donee,

    • (ii) the prior owner sells the vehicle and the sale is a sale to which section 312 applies, or

    • (iii) in consequence of a succession to the trade or profession of the prior owner, section 313(1) applies,

    then, in relation to the purchaser, donee or successor, the price which the vehicle would have fetched if sold in the open market or the expenditure incurred by the prior owner on the provision of the vehicle shall be treated for the purposes of section 289, 312 or 313 as—

    - (I) in the case of a vehicle in Category A, B or C, an amount equal to the specified amount,
    
    - (II) in the case of a vehicle in Category D or E where the retail price of the vehicle at the time it was made was—
    
    - (A) less than or equal to the specified amount, 50 per cent of that price, and
    
    - (B) greater than the specified amount, 50 per cent of the specified amount,
    
      and
    
        - (III) in the case of a vehicle in Category F or G, nil,
    
          and, in the application of subsection (4) to the purchaser, donee or successor, references to the expenditure incurred on the provision of the vehicle shall be construed as references to the expenditure so incurred by the prior owner.
    

  • (b) Where paragraph (a) has applied on any occasion in relation to a vehicle, and no sale or gift of the vehicle has since occurred other than one to which either section 289 or 312 applies, then, in relation to all persons concerned, the like consequences under paragraph (a) shall ensue as respects a gift, sale or succession within subparagraphs (i) to (iii) of that paragraph which occurs on any subsequent occasion as would ensue if the person who in relation to that sale, gift or succession is the prior owner had incurred expenditure on the provision of the vehicle of an amount equal to the expenditure so incurred by the person who was the prior owner on the first-mentioned occasion.

• (6) In the application of section 290 to a case where the vehicle is the new machinery referred to in that section, the expenditure shall be disregarded in so far as it exceeds—

  • (a) in the case of a vehicle in Category A, B or C, the specified amount,

  • (b) in the case of a vehicle in Category D or E, where the retail price of the vehicle at the time it was made was—

    • (i) less than or equal to the specified amount, 50 per cent of that price, and

    • (ii) greater than the specified amount, 50 per cent of the specified amount,

    and

  • (c) in the case of a vehicle in Category F or G, nil,

  but without prejudice to the application of subsections (1) to (5) to the vehicle.

• (7) Expenditure shall not be regarded for the purposes of this Part as having been incurred by a person in so far as the expenditure has been or is to be met directly or indirectly by the State or by any person other than the first-mentioned person.

Limit on deductions, etc. for hiring cars.

380M.— Where apart from this section the amount of any expenditure on the hiring (otherwise than by means of hire-purchase) of a vehicle to which this Part applies would be allowed to be deducted or taken into account as mentioned in section 375, then the amount of that expenditure shall—

- (*a*) in the case of a vehicle in Category A, B or C, be increased or reduced, as the case may be, in the proportion which the specified amount bears to the retail price of the vehicle at the time it was made,

- (*b*) in the case of a vehicle in category D or E where the retail price of the vehicle at the time it was made was—

    - (i) less than or equal to the specified amount, be reduced by 50 per cent, and

    - (ii) greater than the specified amount, be reduced in the proportion which 50 per cent of the specified amount bears to that price,

      and

- (*c*) in the case of a vehicle in category F or G, be nil.

  Cars: provisions as to hire-purchase, etc.

  380N.— (1) In the case of a vehicle to which this Part applies, subsections (2) to (4) shall apply.

• (2) Where a person, having incurred capital expenditure on the provision of a vehicle to which this Part applies under a contract providing that such person shall or may become the owner of the vehicle on the performance of the contract, ceases to be entitled to the benefit of the contract without becoming the owner of the vehicle, then that expenditure shall, in so far as it relates to the vehicle, be disregarded for the purposes of Chapter 2 of Part 9 and in determining what amount (if any) is allowable as mentioned in section 375.

• (3) Where subsection (2) applies, all payments made under the contract shall be treated for tax purposes (including in particular for the purposes of section 380M) as expenditure incurred on the hiring of the vehicle otherwise than by means of hire-purchase.

• (4) Where the person providing the vehicle takes it under a hire-purchase contract, then, in apportioning the payments under the contract between capital expenditure incurred on the provision of the vehicle and other expenditure, so much of those payments shall be treated as such capital expenditure as is equal to the price which would be chargeable, at the time the contract is entered into, to the person providing the vehicle if that person were acquiring it on a sale outright.

Cars: provisions where hirer becomes owner.

380O.— Where, having hired (otherwise than by means of hire-purchase) a vehicle to which this Part applies, a person subsequently becomes the owner of the vehicle, then, for the purposes of the Tax Acts (and in particular sections 380L and 380M)—

- (*a*) so much of the aggregate of the payments for the hire of the vehicle and of any payment for the acquisition of the vehicle as does not exceed the retail price of the vehicle at the time it was made shall be treated as capital expenditure incurred on the provision of the vehicle, and as having been incurred when the hiring began, and

- (*b*) the payments to be treated as expenditure on the hiring of the vehicle shall be rateably reduced so as to amount in the aggregate to the balance.

  Provisions supplementary to sections 380L to 380O.

  380P.— (1) Sections 380L and 380M, subsections (2) and (3) of section 380N and section 380O shall not apply where a vehicle is provided or hired, wholly or mainly, for the purpose of hire to or the carriage of members of the public in the ordinary course of trade.

• (2) Section 380L, subsections (2) and (3) of section 380N and section 380O shall not apply in relation to a vehicle provided by a person who is a manufacturer of a vehicle to which this Part applies, or of parts or accessories for such a vehicle, if the person shows that the vehicle was provided solely for the purpose of testing the vehicle or parts or accessories for such vehicle; but, if during the period of 5 years beginning with the time when the vehicle was provided, such person puts it to any substantial extent to a use which does not serve that purpose only, this subsection shall be deemed not to have applied in relation to the vehicle.

• (3)

  • (a) There shall be made all such additional assessments and adjustments of assessments as may be necessary for the purpose of applying subsections (2) and (3) of section 380N, section 380O and subsection (2), and any such additional assessments or adjustments of assessments may be made at any time.

  • (b) In the case of the death of a person who, if he or she had not died, would under subsections (2) and (3) of section 380N, section 380O and subsection (2) have become chargeable to tax for any year, the tax which would have been so chargeable shall be assessed and charged on his or her executors or administrators and shall be a debt due from and payable out of his or her estate.”.

• (2) Subsection (1) applies to expenditure incurred on the provision or hiring of a vehicle on or after 1 July 2008.

32. Amendment of section 481 (relief for investment in films) of Principal Act.

32.— (1) Section 481 of the Principal Act is amended—

• (a) in subsection (1) by substituting “31 December 2012” for “31 December 2008” in the definition of “qualifying period”,

• (b) in subsection (2)(c) by substituting “€50,000,000” for “€35,000,000”,

• (c) in subsection (8) by substituting “the year of assessment 2012” for “the year of assessment 2008”, and

• (d) in subsection (9) by substituting “the year of assessment 2012” for “the year of assessment 2008”.

• (2) This section comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.

33. Amendment of section 668 (compulsory disposals of livestock) of Principal Act.

33.— Section 668 of the Principal Act is amended in subsection (1) by deleting “relating to the eradication or control of brucellosis in livestock” in paragraph (a) of the definition of “stock to which this section applies”.

34. Amendment of Schedule 26A (donations to approved bodies, etc.) to Principal Act.

34.— (1) Schedule 26A to the Principal Act is amended in Part 1 by deleting paragraph 20.

• (2) Subsection (1) applies as on and from 31 January 2008.

35. Amendment of section 531 (payments to subcontractors in certain industries) of Principal Act.

35.— (1) Section 531 of the Principal Act is amended—

• (a) by inserting the following after subsection (2):

• “(2A)

  • (a) Subject to paragraph (b), a person shall be deemed not to be a principal of a kind specified in subsection (1)(c) where the following conditions are met—

    • (i) in the performance of a relevant contract, the person makes a payment to a subcontractor solely in connection with construction operations carried out in or on buildings or land to be used or occupied by such person or the employees of such person, and

    • (ii) the person does not carry on a business of the type mentioned in subsection (1)(b)(i).

  • (b) Where a person is a principal of a kind specified in subsection (1)(c) by reason of the fact that such person is connected with a company carrying on a business of the type mentioned in subsection (1)(b)(i), paragraph (a) shall apply only where in addition to the conditions specified in that paragraph such person is a company.”,

and

• (b) in subsection (6)(b)(i) by inserting “(other than where one of such persons comes within a class or classes of persons as may be specified in the regulations)” after “by the persons who intend to enter into such a contract”.

• (2) Subsection (1) has effect as on and from the date of passing of this Act.

36. Amendment of section 110 (securitisation) of Principal Act.

36.— (1) Section 110 of the Principal Act is amended in subsection (1)—

• (a) in the definition of “ qualifying asset ” by inserting “(including a partnership interest)” after “interest”,

• (b) in the definition of “ financial asset ”—

• (i) in paragraph (g) by deleting “and” where it last occurs and in paragraph (h) by substituting “instruments,” for “instruments;” and

• (ii) by inserting the following after paragraph (h):

• “(i) greenhouse gas emissions allowance, and

• (j) contracts for insurance and contracts for reinsurance;”,

and

• (c) by inserting the following after the definition of “ financial asset ”:

“ ‘ greenhouse gas emissions allowance ’ means an allowance, permit, licence or right to emit during a specified period, a specified amount of carbon dioxide or any other greenhouse gas as defined in Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC of 24 September 1996, where such allowance, permit, licence or right is issued by a State or by an inter-governmental or supra-national institution pursuant to a scheme which—

• (a) imposes limitations on the emission of such greenhouse gases, and

• (b) allows the transfer for value of such allowances, permits, licences or rights;”.

• (2) This section applies on and from the date of the passing of this Act.

37. Equalisation reserves for credit insurance and reinsurance business of companies.

37.— (1) The Principal Act is amended in Chapter 6 of Part 4 by inserting the following section after section 81A:

“81B.— (1) In this section—

‘ Reinsurance Regulations ’ means the European Communities (Reinsurance) Regulations 2006 (S.I. No. 380 of 2006);

‘ relevant rules ’ means the rules as set out in point D, as inserted by Council Directive 87/343/EEC of 22 June 1987, to the Annex to the First Council Directive 73/239/EEC of 24 July 1973.

• (2) Subject to the following provisions of this section, full account shall be taken of all amounts in accordance with the rules in subsection (3) in making any computation, for the purposes of Case I of Schedule D, of the profits or losses for any accounting period of an insurance company whose business has at any time been or included business in respect of which it was required, by virtue of Regulation 24 of the Reinsurance Regulations, to establish and maintain an equalisation reserve.

• (3) The rules specified in this subsection are—

  • (a) amounts which, in accordance with the relevant rules, are transferred into the equalisation reserve in respect of the company’s business in a period are to be deductible in that period,

  • (b) amounts which, in accordance with the relevant rules, are transferred out of the reserve in respect of the company’s business in a period are to be treated as receipts of that business in that period, and

  • (c) it shall be assumed that all such transfers as are required by the Reinsurance Regulations to be made into or out of the reserve in respect of the company’s business for any period are made as required.

• (4) Where an insurance company having any business in respect of which it is required, by virtue of Regulation 24 of the Reinsurance Regulations, to maintain an equalisation reserve ceases to trade—

  • (a) any balance which exists in the reserve at that time for the purposes of the Corporation Tax Acts shall be deemed to have been transferred out of the reserve immediately before the company ceases to trade, and

  • (b) that transfer out shall be deemed to be a transfer in respect of the company’s business for the accounting period in which the company ceases and to have been required by virtue of the Reinsurance Regulations.

• (5) To the extent that any actual or assumed transfer in accordance with the Reinsurance Regulations of any amount into an equalisation reserve is attributable to arrangements entered into wholly or mainly for tax purposes—

  • (a) subsection (2) shall not apply to that transfer, and

  • (b) the making of that transfer shall be disregarded in determining, for the purposes of the Tax Acts, whether and to what extent there is subsequently any requirement to make a transfer into or out of the reserve in accordance with the Reinsurance Regulations,

  and this subsection applies irrespective of whether the insurance company in question is a party to the arrangements.

• (6) For the purposes of this section, the transfer of an amount into an equalisation reserve is attributable to arrangements entered into wholly or mainly for tax purposes to the extent that the arrangements to which it is attributable are arrangements—

  • (a) the sole or main purpose of which is, or

  • (b) the sole or main benefit accruing from which might, apart from subsection (7), be expected to be,

  the reduction by virtue of this section of any liability to tax.

• (7) Where—

  • (a) any transfer made into or out of an equalisation reserve maintained by an insurance company is made in accordance with the Reinsurance Regulations in respect of business carried on by that company over a period (in this subsection referred to as the ‘equalisation period’), and

  • (b) parts of the equalisation period are in different accounting periods,

  then the amount transferred shall be apportioned for the purposes of this section between the different accounting periods in the proportions that correspond to the number of days in the equalisation period that are included in each of those accounting periods.”.

• (2) This section is deemed to have effect as and from 15 July 2006.

38. Amendment of section 730D (gain arising on a chargeable event) of Principal Act.

38.— (1) Section 730D of the Principal Act is amended in subsection (2A)(b)—

• (a) by substituting the following for subparagraph (i):

• “(i) (I) (A) the assurance company which commenced the life policy has established a branch in an offshore state, and

  • (B) the commitment represented by that life policy is covered by that branch,

  or

  - (II) (A) the assurance company which commenced the life policy underwrites the business from the State on a freedom of services basis under Regulation 50 of the European Communities (Life Assurance) Framework Regulations 1994 (S.I. No. 360 of 1994) or other equivalent arrangement in an EEA state, and
  

  • (B) the policyholder resides in an offshore state,

  and”,

and

• (b) by deleting subparagraph (ii).

• (2) This section applies on and from the date of the passing of this Act.

39. Amendment of Chapter 1A (investment undertakings) of Part 27 of Principal Act.

39.— (1) Chapter 1A of Part 27 of the Principal Act is amended—

• (a) in section 739B(1) in paragraph (ccc) of the definition of “ chargeable event ” by inserting “where such ending is not otherwise a chargeable event within the meaning of this section,” after “of a relevant period,”,

• (b) in section 739D—

• (i) in subsection (2)—

• (I) in paragraph (dd) by inserting “except as a consequence of a gain arising on a chargeable event within the meaning of paragraph (ccc) in section 739B(1),” after “entitlement to a unit,”, and

• (II) by substituting the following for paragraph (ddd):

• “(ddd) where the chargeable event is the ending of a relevant period in relation to a unit of a unit holder—

• (i) the excess (if any) of the value of the unit, without having regard to any amount of appropriate tax (within the meaning of section 739E) thereby arising, held by the unit holder on the day of that ending over the total amount invested in the investment undertaking by the unit holder for the acquisition of the unit, and where the unit was otherwise acquired by the unit holder, the amount so invested to acquire that unit shall be the value of the unit at the time of its acquisition by the unit holder, or

• (ii) in a case where the investment undertaking has made an election under subsection (5B), the amount determined under that subsection, and”,

• (ii) in subsection (2A) by substituting the following for paragraph (a):

• “(a) a chargeable event occurs in relation to an investment undertaking in respect of a unit holder, and”,

• (iii) in subsection (3), in the construction of C, by substituting “before the chargeable event, reduced by any amount of first tax (within the meaning of section 739E (1A)(a)),” for “before the chargeable event”,

• (iv) in subsection (4), in the construction of C, by substituting “before the chargeable event, reduced by any amount of first tax (within the meaning of section 739E (1A)(a)),” for “before the chargeable event”, and

• (v) by inserting the following after subsection (5A):

• “(5B)

  • (a) The election referred to in paragraph (ddd) of subsection (2) is an irrevocable election made by an investment undertaking in respect of all its unit holders at the time of the election or at any other time and the amount is as determined by the formula—

  A1 — A2

  where—

  A1 is the value of the unit at the later of 30 June or 31 December prior to the date of the chargeable event,

  and

  A2 is—

  - (i) the total amount invested in the investment undertaking by the unit holder for the acquisition of the unit, and where the unit was otherwise acquired by the unit holder, the amount so invested to acquire that unit shall be the value of the unit at the time of its acquisition by the unit holder, or
  
  - (ii) if a chargeable event to which paragraph (*ccc*) of section 739B(1) refers has previously occurred, the value of the unit at the later of 30 June or 31 December prior to the date of the latest of such chargeable events.
  

  • (b) On the first occasion that the investment undertaking is required to compute a gain on the happening of a chargeable event within the meaning of paragraph (ccc) in section 739B(1) in respect of a unit holder, and—

    • (i) the gain is computed in accordance with paragraph (a), the investment undertaking will be deemed to have made the election specified in that paragraph, or

    • (ii) the gain is not computed in accordance with paragraph (a), an election under paragraph (a) shall not be made.”,

• (c) in section 739E—

• (i) in subsection (1A)—

• (I) in paragraph (a)—

• (A) by substituting the following for the definition of “ first tax ”:

“ ‘ first tax ’, in relation to a unit of a unit holder, means the appropriate tax that was accounted for and paid in accordance with section 739F in respect of a chargeable event within the meaning of paragraph (ccc) of the definition of ‘chargeable event’ in section 739B(1) in relation to an investment undertaking in respect of the unit and which has not been repaid;”,

• (B) by substituting the following for the definition of “ new gain ”:

“ ‘ new gain ’, in relation to a unit of the unit holder, means a gain referred to in section 739D(2A) in respect of that unit;”,

• (II) in paragraph (b)—

• (A) by substituting the following for subparagraph (ii):

• “(ii) Where such relevant proportion exceeds such second tax, an amount equal to the amount of the excess shall—

  • (I) (A) be paid by the investment under-taking to the unit holder in respect of the unit,

  • (B) be included in a return under section 739F(2), and

    • (C) be treated as an amount which may be set off against appropriate tax payable by the investment under-taking in respect of any chargeable event in the period for which such a return is made, or any subsequent period,

    or

    • (II) if the investment undertaking so elects, in writing to the Revenue Commissioners, be paid by the Revenue Commissioners to the unit holder in respect of the unit on receipt of a claim by the unit holder but only if immediately before the chargeable event the value of the number of units of the investment undertaking in respect of which, if a gain had arisen, would be treated as arising to the investment undertaking on the happening of a chargeable event does not exceed 15 per cent of the value of the total number of units of the investment undertaking at that time,

    and where the investment undertaking has advised the unit holder, in writing, that clause (II) applies and has supplied the unit holder with the necessary information to enable the claim to be made to the Revenue Commissioners, then the investment undertaking shall be deemed to have made the election specified in that clause; otherwise the election under that clause shall not be made.”,

and

• (B) by deleting subparagraph (iii),

• (ii) in subsection (2) by substituting “Subject to subsection (2A), an investment undertaking” for “An investment undertaking”,

• (iii) by inserting the following after subsection (2):

• “(2A)

  • (a) Subsection (2) shall not apply in relation to a chargeable event to which paragraph (ccc) in section 739B(1) refers where—

    • (i) immediately before the chargeable event the value of the number of units in the investment undertaking, or if an umbrella scheme exists in the sub-fund concerned, in respect of which any gains arising would be treated as arising to the investment undertaking, or the sub-fund as the case may be, on the happening of a chargeable event is less than 10 per cent of the value of the total number of units in the investment undertaking, or the sub-fund as the case may be, at that time, and

    • (ii) the investment undertaking has made an election, in writing, to the Revenue Commissioners that it will make in respect of each year of assessment a statement (including where it is the case, a statement with a nil amount) to the Revenue Commissioners in electronic format approved by them, on or before 31 March in the year following the year of assessment, which specifies in respect of each person who is a unit holder—

      • (I) the name and address of the person,

      • (II) the value at the end of the year of assessment of the units to which the person is entitled at that time, and

      • (III) such other information as the Revenue Commissioners may require.

  • (b) Where paragraph (a) applies—

    • (i) the investment undertaking shall advise the unit holder concerned, in writing, that paragraph (a) applies,

    • (ii) the statement specified in paragraph (a)(ii) shall be made by the investment undertaking in accordance with that paragraph, and

    • (iii) the unit holder shall be deemed for that chargeable period to be a chargeable person for the purposes of sections 951 and 1084, and the return of income to be delivered by the person for that chargeable period shall include the following particulars:

      • (I) the name and address of the investment undertaking, and

      • (II) the gains arising on the chargeable event.”,

• (d) in section 739G by inserting the following after subsection (2):

• “(2A) Where a gain arises on a chargeable event to which paragraph (ccc) in section 739B(1) refers, and section 739E(2) does not apply to that chargeable event by virtue of subsection (2A) of that section, then such gain—

  • (a) shall be treated for the purposes of the Tax Acts as arising to the unit holder, constituting profits or gains chargeable to tax under Case IV of Schedule D at the rate specified in section 739E(1)(b), and

  • (b) shall not be reckoned in computing total income for the purposes of the Tax Acts,

  and section 188, and the reductions specified in Part 2 of the Table to section 458, shall not apply as regards the tax so charged.”,

and

• (e) in section 739H—

• (i) by inserting the following after subsection (1):

• “(1A) For the purposes of subsection (1) a reference in the definition of ‘exchange’ to an investment undertaking includes a reference to a sub-fund of an umbrella scheme where the exchange concerned is between 2 or more sub-funds of different umbrella schemes.

• (1B) Subsection (1A) shall not apply unless the exchange concerned is effected for bona fide commercial reasons and not primarily for the purpose of avoiding liability to taxation.”,

and

• (ii) by substituting the following for subsection (2):

• “(2) The cancellation of old units arising from an exchange in relation to a scheme of reconstruction or amalgamation shall not be a chargeable event and the amount invested by a unit holder for, and the date of, the acquisition of the new units shall for the purposes of this Chapter be the amount invested by the unit holder for, and the date of, the acquisition of the old units.”.

• (2)
• (a) Paragraphs(a), (b), (c) and (d) of subsection (1) apply and have effect as respects any chargeable event (within the meaning of section 739B(1) of the Principal Act) occurring on or after the passing of this Act.

• (b) Paragraph (e) of subsection (1) applies and has effect as respects any exchange (within the meaning of section 739H(1) of the Principal Act) in relation to a scheme of reconstruction or amalgamation occurring on or after the passing of this Act.

40. Amendment of section 768 (allowance for know-how) of Principal Act.

40.— (1) Section 768 of the Principal Act is amended—

• (a) by substituting the following for subsection (3):

• “(3) Where—

  • (a) a person acquires a trade or part of a trade and, together with the trade or the part of the trade, know-how used in the trade or part of the trade, or

  • (b) (i) a person acquires a trade or part of a trade, and

    • (ii) a person connected (within the meaning of section 10) with the person acquires know-how used in the trade or the part of the trade,

    then no amount shall be allowed to be deducted under this section in respect of expenditure incurred on the acquisition of the know-how.

• (3A) The amount which shall be allowed to be deducted under this section in respect of expenditure incurred by a person on know-how shall be limited to the amount which has been incurred wholly and exclusively on the acquisition of know-how for bona fide commercial reasons and was not incurred as part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax.”,

and

• (b) by inserting the following after subsection (4):

• “(5)

  • (a) The Revenue Commissioners may, in relation to a claim by a person that expenditure is allowed to be deducted in accordance with subsection (2)—

    • (i) consult with any person (in this subsection referred to as an ‘expert’) who in their opinion may be of assistance in ascertaining the extent to which such expenditure is incurred on know-how, and

    • (ii) notwithstanding any obligation as to secrecy or other restriction on the disclosure of information imposed by, or under, the Tax Acts or any other statute or otherwise, but subject to paragraph (b), disclose any detail in the person’s claim under this section which they consider necessary for such consultation.

  • (b) (i) Before disclosing information to any expert under paragraph (a), the Revenue Commissioners shall make known to the person—

    • (I) the identity of the expert who they intend to consult, and

    • (II) the information they intend to disclose to the expert.

    • (ii) Where the person shows to the satisfaction of the Revenue Commissioners (or on appeal to the Appeal Commissioners) that disclosure of such information to that expert could prejudice the person’s trade, then the Revenue Commissioners shall not make such disclosure.”.

• (2) This section applies as respects any chargeable period (within the meaning of section 321(2) of the Principal Act) ending on or after 31 January 2008.

41. Expenditure involving crime.

41.— (1) The Principal Act is amended by inserting the following section after section 83:

“83A.— (1) In computing any income chargeable to tax under Schedule D, no deduction shall be made for any expenditure incurred—

• (a) in making a payment the making of which constitutes the commission of a criminal offence, or

• (b) in making a payment outside of the State where the making of a corresponding payment in the State would constitute a criminal offence.

• (2) Any expenditure specified in subsection (1) shall not be included in computing any expenses of management in respect of which relief may be given under the Tax Acts.”.

• (2) This section applies as respects any chargeable period (within the meaning of section 321(2) of the Principal Act) ending on or after 31 January 2008.

42. Certain transfers of assets between companies.

42.— (1) The Principal Act is amended—

• (a) in section 615(2)(a)—

• (i) in subparagraph (ii) by substituting “before that time,” for “before that time, and”, and in subparagraph (iii) by substituting “of the business), and” for “of the business)”, and

• (ii) by inserting the following after subparagraph (iii):

• “(iv) the company acquiring the assets is not an authorised investment company (within the meaning of Part XIII of the Companies Act 1990) that is an investment undertaking (within the meaning of section 739B),”,

and

• (b) in section 617(1) by substituting the following for paragraph (c):

• “(c) the other company—

• (i) 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, and

• (ii) is not an authorised investment company (within the meaning of Part XIII of the Companies Act 1990) that is an investment undertaking (within the meaning of section 739B),”.

• (2) This section applies as respects a transfer, or as the case may be a disposal, on or after 18 February 2008.

Chapter 4 Corporation Tax

43. Tax treatment of certain dividends, etc.

43.— (1) The Principal Act is amended—

• (a) in section 21A(3) by substituting “but subject to subsection (4) and section 21B” for “but subject to subsection (4)”, and

• (b) by inserting the following section after section 21A:

“Tax treatment of certain dividends.

21B.— (1) (a) In this section—

‘ profits ’, in relation to a company for a period, means—

• (i) where the profit and loss account, or income statement, of the company for that period is required to be laid before the annual general meeting of the company, the amount of profits, after taxation, as shown in that profit and loss account, or that income statement, and

• (ii) in any other case, the amount of profits, after taxation, as shown in the profit and loss account, or income statement, of the company which is prepared in accordance with an accounting framework that, in the territory in which the company is incorporated, is generally accepted as presenting a fair view of the profit for that period;

‘ relevant territory ’ means—

• (i) a Member State of the European Communities, or

• (ii) not being such a Member State, a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made;

‘ trading profits ’, in relation to a company for a period, means the aggregate of so much of the profits of the company for that period as are, on a just and reasonable basis, attributable to—

• (i) the carrying on by the company of a trade, and

• (ii) the amount of dividends received by the company which are treated as trading profits by virtue of this section,

but does not include amounts attributable to profits, or to dividends received by a company which are paid out of profits, of an excepted trade (within the meaning of section 21A).

• (b) For the purposes of this section—

  • (i) references to a company by which a dividend is paid apply only to a company that throughout the period out of the profits of which the dividend was paid was, by virtue of the law of a relevant territory, resident for the purposes of tax in such a relevant territory, and for this purpose ‘ tax ’, in relation to a relevant territory, means any tax imposed in the relevant territory which corresponds to corporation tax in the State,

  • (ii) so much of a dividend received by a company (in this subparagraph referred to as the ‘first-mentioned company’) which is paid by another company out of trading profits, or an amount treated by this section as trading profits, of the other company shall be treated as trading profits of the first-mentioned company,

  • (iii) subject to subparagraph (iv), the period out of the profits of which a dividend is paid by a company shall be—

    • (I) if the dividend is paid by the company for a specified period, that period,

    • (II) if the dividend is not paid for a specified period but is paid out of specified profits, the period in which those profits arise, or

    • (III) if the dividend is not paid by the company for a specified period nor out of specified profits, the last period for which accounts of the company were made up and which ended before the dividend became payable,

    and

  • (iv) where, as respects a period identified in accordance with subparagraph (iii) or this subparagraph, the total dividend exceeds the profits available for distribution for that period, then so much of the dividend as is equal to the excess shall be treated as paid out of profits of the preceding period (other than profits of that period which were, or were treated for the purposes of this subparagraph as, previously distributed), and such period shall be treated as a period identified by subparagraph (iii) for the purposes of the further application of this subparagraph where required.

• (2) For the purposes of this section—

  • (a) subject to paragraph (b), so much of a dividend paid by a company for a period, as bears to the amount of that dividend the same proportion as the amount of trading profits of the company for that period bears to the total profits of the company for that period, shall be treated as paid out of trading profits of the company, and

  • (b) a dividend received by a company (in this paragraph referred to as the ‘receiving company’) within the charge to corporation tax in the State which is paid by a company (in this paragraph referred to as the ‘paying company’) out of the profits of a period shall be treated as paid out of trading profits of the paying company for that period if—

    • (i) not less than 75 per cent of the total profits of the paying company for the period are trading profits, and

    • (ii) the value at the end of the accounting period in which the dividend is received by the receiving company of assets (other than specified assets) used by the receiving company, and each company of which the receiving company is the parent company (within the meaning of section 626B), during that period for the purposes of the carrying on by those companies of a trade or trades is not less than 75 per cent of the value at the end of that period of the assets (other than specified assets) of those companies, and for this purpose an asset shall be treated as a specified asset if it consists of—

      • (I) shares of one of those companies held by another of those companies, or

      • (II) loans made by one of those companies to another of those companies.

• (3) Subject to subsection (4), this section applies as respects an accounting period of a company where the company receives a dividend chargeable under Case III of Schedule D from another company and the dividend is paid by the other company out of trading profits of the other company.

• (4) Where the income of a company (in this subsection referred to as the ‘first-mentioned company’) which is chargeable under Case III of Schedule D for an accounting period of the company includes a dividend paid to the company by another company and the first-mentioned company—

  • (a) does not own, directly or indirectly, either alone or together with a person who is connected (within the meaning of section 10) with the first-mentioned company, more than 5 per cent of the share capital of the other company, and

  • (b) does not hold more than 5 per cent of the voting rights in the other company,

  then the dividend shall be treated for the purposes of subsection (3) as a dividend received by the first-mentioned company which is paid by the other company out of trading profits of the other company.

• (5) Where a company proves that this section applies as respects an accounting period of the company and makes a claim in that behalf, then subsection (3) of section 21A shall not apply to so much of any income of the company chargeable under Case III of Schedule D as consists of a dividend received by the company from another company if the dividend is paid by the other company out of trading profits of the other company.

• (6) A claim by a company under this section as respects an accounting period of the company shall be included with the return under section 951 which falls to be made by the company for the accounting period.”,

• (c) in section 243A(3)—

• (i) in paragraph (a) by deleting “and” and in paragraph (b) by substituting “income, and” for “income,”, and

• (ii) by inserting the following after paragraph (b):

• “(c) income to which section 21A(3) does not apply by virtue of section 21B,”,

• (d) in section 396A(3)—

• (i) in paragraph (a) by deleting “and” and in paragraph (b) by substituting “income, and” for “income,”, and

• (ii) by inserting the following after paragraph (b):

• “(c) income to which section 21A(3) does not apply by virtue of section 21B,”,

• (e) in section 420A(3)(a)—

• (i) in subparagraph (i) by deleting “and” and in subparagraph (ii) by substituting “income, and” for “income,”, and

• (ii) by inserting the following after subparagraph (ii):

• “(iii) income to which section 21A(3) does not apply by virtue of section 21B,”,

and

• (f) in Schedule 24, by substituting the following for paragraph 9E:

“9E. (1) (a) In this paragraph—

‘ foreign company ’ means a company resident outside the State;

‘ unrelieved foreign tax ’ has the meaning assigned to it in subparagraph (2);

‘ unrelieved foreign tax in respect of specified dividends ’ has the meaning assigned to it in subparagraph (3).

• (b) For the purposes of this paragraph—

  • (i) a dividend is a relevant dividend if it is received by a company (in this clause referred to as the ‘receiving company’) from a company which is not resident in the State (in this clause referred to as the ‘paying company’) and the paying company is related to the receiving company (within the meaning of paragraph 9B(5)(b)), and

  • (ii) the aggregate amount of corporation tax payable by a company for an accounting period in respect of any dividends received by the company in the accounting period from foreign companies means so much of the corporation tax that, apart from this paragraph, would be payable by the company for that accounting period as would not have been payable had those dividends not been received by the company.

• (2)

  • (a) Where, as respects a relevant dividend received in an accounting period by a company and which is charged to corporation tax in accordance with section 21A, any part of the foreign tax cannot, apart from this paragraph, be allowed as a credit against any of the Irish taxes and, accordingly, the amount of income representing the dividend is treated under paragraph 7(3)(c) as reduced by that part of the foreign tax, then an amount determined by the formula—

  100 — R x D

  100

  where—

  R is the rate per cent specified in section 21A(3), and

  D is the amount of the part of the foreign tax by which the income is to be treated under paragraph 7(3)(c) as reduced,

  shall be treated for the purposes of clause (b) as unrelieved foreign tax of that accounting period.

  • (b) The aggregate amount of corporation tax payable by a company for an accounting period in respect of relevant dividends received by the company in that accounting period from foreign companies shall be reduced by the unrelieved foreign tax of that accounting period.

  • (c) Where the unrelieved foreign tax in relation to an accounting period of a company exceeds the aggregate amount of corporation tax payable by the company for the accounting period in respect of relevant dividends received by the company in that accounting period from foreign companies, the excess shall be carried forward and treated as unrelieved foreign tax of the next succeeding accounting period, and so on for succeeding accounting periods.

• (3)

  • (a) In this subparagraph ‘ specified dividend ’ means a relevant dividend which is not charged to corporation tax in accordance with section 21A.

  • (b) Where, as respects a specified dividend received in an accounting period by a company, any part of the foreign tax cannot, apart from this paragraph, be allowed as a credit against any of the Irish taxes and, accordingly, the amount of income representing the dividend is treated under paragraph 7(3)(c) as reduced by that part of the foreign tax, then an amount determined by the formula—

  100 — R x D

  100

  where—

  R is the rate per cent specified in section 21, and

  D is the amount of the part of the foreign tax by which the income is to be treated under paragraph 7(3)(c) as reduced,

  shall be treated for the purposes of clause (c) as unrelieved foreign tax in respect of specified dividends of that accounting period.

  • (c) The aggregate amount of corporation tax payable by a company for an accounting period in respect of specified dividends received by the company in that accounting period from foreign companies shall be reduced by the unrelieved foreign tax in respect of specified dividends of that accounting period.

  • (d) Where the unrelieved foreign tax in respect of specified dividends in relation to an accounting period of a company exceeds the aggregate amount of corporation tax payable by the company for the accounting period in respect of specified dividends received by the company in that accounting period from foreign companies, the excess shall be carried forward and treated as unrelieved foreign tax in respect of specified dividends of the next succeeding accounting period, and so on for succeeding accounting periods.”.

• (2) This section shall be deemed to have applied as respects a dividend received on or after 1 January 2007.

44. Amendment of Part 13 (close companies) of Principal Act.

44.— (1) Part 13 of the Principal Act is amended—

• (a) in section 434—

• (i) in subsection (2) by substituting “and subject to subsection (3A) the distributions of a company” for “, the distributions of a company”, and

• (ii) by inserting the following after subsection (3):

• “(3A)

  • (a) Where a close company pays a dividend, or makes a distribution, to another close company, the companies may jointly elect, by giving notice to the Collector-General in such manner as the Revenue Commissioners may require, that the dividend, or as the case may be the distribution, is to be treated for the purposes of section 440 as not being a distribution.

  • (b) Where notice is given in accordance with paragraph (a), the dividend, or as the case may be the distribution, shall be treated—

    • (i) for the purposes of section 440 as not being a distribution, and

    • (ii) for the purposes of subsection (5) as not being franked investment income.

  • (c) An election by a company under paragraph (a) as respects an accounting period shall be included with the return under section 951 which falls to be made by the company for the accounting period.”.

and

• (b) in section 441(6)(a) by substituting “Subsections (2), (3), (3A), (6) and (7)” for “Subsections (2), (3), (6) and (7)”.

• (2) This section applies as respects a dividend paid, or distribution made, on or after 31 January 2008.

45. Amendment of Part 24 (taxation of profits of certain mines and petroleum taxation) of Principal Act.

45.— (1) Part 24 of the Principal Act is amended—

• (a) by renumbering section 697 as section 696A, and

• (b) by inserting the following after section 696A (renumbered by paragraph (a)):

“Chapter 3

Profit Resource Rent Tax

Interpretation and application (Chapter 3).

696B.— (1) In this Chapter—

‘ cumulative field expenditure ’, in relation to an accounting period of a company in respect of a taxable field, means the aggregate of the taxable field expenditure of the company in respect of the taxable field—

• (a) for that accounting period, and

• (b) for any preceding accounting period beginning on or after 1 January 2007;

‘ cumulative field profits ’, in relation to an accounting period of a company in respect of a taxable field, means the aggregate of the net taxable field profits of the company in respect of the taxable field—

• (a) for that accounting period, and

• (b) for any preceding accounting period beginning on or after 1 January 2007,

after deducting the amount of any loss incurred in respect of the taxable field for any such period;

‘ net taxable field profits ’, in relation to an accounting period of a company, means the taxable field profits of the company for the accounting period after deducting the amount of corporation tax (if any) which would, apart from this Chapter, be payable by the company for the accounting period if the tax were computed on the basis of those profits;

‘ profit ratio ’, in relation to an accounting period of a company in respect of a taxable field, means an amount determined by the formula—

A

B

where—

A is the cumulative field profits of the company in respect of the taxable field in relation to that accounting period, and

B is the cumulative field expenditure of the company in respect of the taxable field in relation to that accounting period;

‘ profit resource rent tax ’ has the meaning given to it in section 696C;

‘ specified licence ’ means—

• (a) an exploration licence, or a reserved area licence, that is granted on or after 1 January 2007, or

• (b) a licensing option;

‘ taxable field ’ means an area in respect of which a petroleum lease entered into following on from a specified licence is in force;

‘ taxable field expenditure ’, in relation to an accounting period of a company, means the aggregate of the amounts of capital expenditure which consist of—

• (a) abandonment expenditure,

• (b) development expenditure, and

• (c) exploration expenditure,

incurred by the company for the accounting period in respect of a taxable field;

‘ taxable field profits ’, in relation to an accounting period of a company, means the amount of the petroleum profits of the company in respect of a taxable field, after making all deductions and giving or allowing all reliefs that for the purposes of corporation tax are made from, or given or allowed against, or are treated as reducing—

• (a) those profits, or

• (b) income or chargeable gains, if any, included in those profits.

• (2) For the purposes of this Chapter—

  • (a) the interpretations in section 684 shall apply, with any necessary modifications, in relation to expenditure and activities carried on under a specified licence as they would apply in relation to expenditure and activities carried on under a licence within the meaning of section 684 if such a licence was a specified licence, and

  • (b) capital expenditure incurred on or after 1 January 2007 by a company in an area which is not a taxable field but which subsequently becomes a taxable field (or part of such a field) shall be treated as if it had been incurred by the company on the day on which the area first becomes a taxable field (or part of such a field).

• (3)

  • (a) Where a company carries on a petroleum trade and that petroleum trade includes petroleum activities carried on under a specified licence, such activities shall, for the purposes of this Chapter, be treated in respect of each taxable field as a separate petroleum trade distinct from all other activities carried on by the company as part of the trade.

  • (b) For the purposes of paragraph (a), any necessary apportionment shall be made in computing taxable field profits or taxable field expenditure of a company and the method of apportionment adopted shall be such method as appears to the inspector or on appeal the Appeal Commissioners to be just and reasonable.

  • (c) Subject to paragraph (d) the provisions of sections 687 to 690 shall apply for the purposes of this Chapter in relation to any activities treated under paragraph (a) as a separate trade as they apply to a petroleum trade within the meaning of those sections.

  • (d) For the purposes of applying this Chapter, in relation to an accounting period of a company in respect of a taxable field, no account shall be taken of any charges paid, interest payable or a loss incurred—

    • (i) by any other company, or

    • (ii) by the first-mentioned company,

    in respect of activities other than activities in relation to that field.

    Charge to profit resource rent tax.

    696C.— (1) Where for an accounting period of a company the profit ratio of the company in relation to a taxable field is equal to 1.5 or more, an additional duty of corporation tax (in this Chapter referred to as a ‘profit resource rent tax’) shall be charged on the profits of the company in accordance with the provisions of this Chapter.

• (2) Profit resource rent tax shall be charged on the profits to which this Chapter applies of a company for an accounting period at the rate of—

  • (a) 5 per cent, where the profit ratio is less than 3,

  • (b) 10 per cent, where the profit ratio is equal to or greater than 3 and less than 4.5,

  • (c) 15 per cent, where the profit ratio is equal to or greater than 4.5.

• (3) The profits to which this Chapter applies as respects any taxable field for an accounting period of a company shall—

  • (a) in respect of any accounting period in relation to which—

    • (i) the profit ratio is equal to or greater than 1.5, and

    • (ii) the profit ratio for the immediately preceding accounting period was less than 1.5,

    be determined by the formula—

    {A — (B x 1.5)} x 1010010

    100 — R

    where—

    A is the cumulative field profits of the company in respect of the taxable field in relation to the accounting period,

    B is the cumulative field expenditure of the company in respect of the taxable field in relation to the accounting period, and

    R is the rate per cent specified in section 21A(3),

    and

  • (b) in respect of any other accounting period of the company, be the taxable field profits of the company in respect of the taxable field for the accounting period.

  Provisions relating to groups (Chapter 3).

  696D.— (1) Where taxable field expenditure in respect of a taxable field is incurred by a company (in this section referred to as the ‘first company’) and

  • (a) another company is a wholly-owned subsidiary of the first company, or

  • (b) the first company is, at the time the taxable field expenditure is incurred, a wholly-owned subsidiary of another company (in this section referred to as the ‘parent company’),

  then, the expenditure or so much of it as the first company specifies, may at the election of that company be deemed to be taxable field expenditure in respect of the taxable field incurred—

  - (i) in the case referred to in paragraph (*a*), by such other company (being a wholly-owned subsidiary of the first company) as the first company specifies, and
  
  - (ii) in the case referred to in paragraph (*b*), by the parent company or by such other company (being a wholly-owned subsidiary of the parent company) as the first company specifies.
  

• (2) Where under subsection (1) taxable field expenditure incurred by a first company is deemed to have been incurred by another company (in this subsection referred to as the ‘other company’)—

  • (a) the expenditure shall be deemed to have been incurred by the other company at the time at which the expenditure was actually incurred by the first company, and

  • (b) in the application of this Chapter the expenditure shall—

    • (i) be deemed to have been incurred by the other company for the purposes of determining the cumulative field expenditure of that company, and

    • (ii) be deemed not to have been incurred by the first company for the purposes of determining the cumulative field expenditure of that company.

• (3) The same expenditure shall not be taken into account in relation to the determination of cumulative expenditure for more than one taxable field by virtue of this section.

• (4) Subsection (5) of section 694 applies for the purposes of subsection (1) as it applies for the purposes of that subsection.

Returns (Chapter3).

696E.— (1) In this section ‘ prescribed form ’ means a form prescribed by the Revenue Commissioners or a form used under the authority of the Revenue Commissioners, and includes a form which involves the delivery of a statement by any electronic, photographic or other process approved of by the Revenue Commissioners.

• (2) A company carrying on petroleum activities under a specified licence shall, in addition to the return required to be delivered under section 951, prepare and deliver to the Collector-General at the same time as, and together with, the return required under section 951 on or before the specified return date for the chargeable period a full and true statement in a prescribed form of the details required by the form in respect of—

  • (a) the amounts constituting the aggregate of the cumulative field expenditure for each field,

  • (b) the amounts constituting the aggregate of the cumulative field profits for each field,

  • (c) the breakdown of the amounts specified in paragraphs (a) and (b), and

  • (d) the amount of profit resource rent tax, if any, payable in respect of each field,

  and of such further particulars in relation to this Chapter as may be required by the prescribed form.

• (3) An officer of the Revenue Commissioners may make such enquiries or take such actions within his or her powers as he or she considers necessary for the purposes of determining the accuracy or otherwise of any details or particulars contained in the statement referred to in subsection (2).

• (4) Subsections (9) and (10) of section 951 shall apply to a statement required to be delivered under this section as they apply to a return required to be delivered under that section, and for that purpose a reference in those subsections to a return, other than a reference to the specified return date for the chargeable period, shall be construed as a reference to a statement under this section.

• (5) Section 1052 shall apply to a failure by a person to deliver a statement under this section or the details or particulars referred to in subsection (3) as it applies to a failure to deliver a return referred to in section 1052.

Collection and general provisions.

696F.— (1) The provisions of the Corporation Tax Acts relating to—

- (*a*) assessments to corporation tax,

- (*b*) appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and

- (*c*) the collection and recovery of corporation tax,

  shall apply in relation to a profit resource rent tax charged under section 696C as they apply to corporation tax charged otherwise than under this Chapter.

• (2)

  • (a) Any amount of profit resource rent tax payable in accordance with this Chapter without the making of an assessment shall carry interest at the rate of 0.0273 per cent for each day or part of a day from the date when the amount becomes due and payable until payment.

  • (b) Section 1080 shall apply in relation to interest payable under paragraph (a) as it applies in relation to interest payable under section 1080.”.

• (2) This section is deemed to have applied in the case of profits in respect of any petroleum lease entered into following on from a licensing option or from an exploration licence, or a reserved area licence, awarded by the Minister for Communications, Energy and Natural Resources after 1 January 2007.

46. Acceleration of wear and tear allowances for certain energy-efficient equipment.

46.— (1) The Principal Act is amended—

• (a) by inserting the following section after section 285: