No. 7/1976:

CORPORATION TAX ACT, 1976

ARRANGEMENT OF SECTIONS

PART I GENERAL SYSTEM OF TAXATION

1 Introduction for companies of corporation tax in place of income tax, corporation profits tax and capital gains tax.

2 Irish resident company distributions not chargeable to corporation tax.

3 Income tax on payments made or received by a company resident in the State.

4 Claims for repayment of income tax deducted from receipts.

5 Explanation of tax credit to be annexed to interest and dividend warrants.

PART II CORPORATION TAX

6 General scheme of corporation tax.

7 Tax on company in liquidation.

8 Companies not resident in the State.

9 Basis of, and periods for, assessment.

10 Allowances of charges on income.

11 Computation of income: application of income tax principles.

12 Miscellaneous special rules for Computation of income.

13 Computation of chargeable gains.

14 Deductions and additions in computation of profits for capital allowances and related charges.

15 Deduction of management expenses of Investment companies (including savings banks).

16 Relief for trading losses other than terminal losses.

17 Restriction of relief for losses in farming or market gardening.

18 Relief for terminal loss in a trade.

19 Losses in transactions from which income would be chargeable under Case IV or V of Schedule D.

20 Company reconstructions without change of ownership.

21 Application and adaptation of Income Tax Acts as to capital allowances.

22 Double taxation relief.

23 Double taxation relief: supplementary.

24 Franked investment income and franked payment.

25 Set-off of losses etc. against franked investment income.

26 Set-off of loss brought forward or terminal loss against franked investment income in the case of financial concerns.

27 Change in ownership of company: disallowance of trading losses.

PART III SPECIAL CLASSES OF COMPANIES

28 Reduction of corporation tax liability of small companies.

29 Companies carrying on mutual business, or not carrying on a business.

30 Industrial and provident societies.

31 Building societies.

32 Partnerships involving companies.

33 Expenses of management of assurance companies.

34 Companies carrying on life business.

35 Profits of life business.

36 Investment income reserved for policy holders.

37 Chargeable gain reserved for policy holders.

38 Life business: computation of profits.

39 Annuity business: separate charge on profits.

40 General annuity business.

41 Pension business.

42 Foreign life assurance funds.

43 Overseas life assurance companies: investment income.

44 Overseas life assurance companies: general annuity and pension businesses.

45 Overseas life assurance companies: income tax, foreign tax and tax credit.

46 Overseas life assurance companies: distributions set off against income.

47 Overseas life assurance companies: expenses of management.

48 Life policies carrying rights not in money.

49 Benefits from life policies issued before 6th April, 1974.

50 Interpretation.

51 Treatment of tax-free income of non-resident banks, etc.

52 Tax-free securities: exclusion of interest on borrowed money.

PART IV PROFITS FROM EXPORT OF CERTAIN GOODS

53 Definition of "relevant accounting period".

54 Meaning of "goods".

55 Ship building and repair.

56 Export of certain goods.

57 Standard period.

58 Basis of relief from corporation tax.

59 Certain manufacturing service.

60 Relief for engineering services in relation to works outside the State.

61 Adjustments of certain amounts.

62 Transactions between associated persons and company succeeding to trade of another company.

63 Production of documents and records.

64 Distributions.

65 Dividends and other distributions at gross rate or of gross amount.

66 Effect of reduction of tax credit.

67 Distributions to non-resident individuals.

68 Appeals.

PART V PROFITS FROM TRADING WITHIN SHANNON AIRPORT

69 Definitions.

70 Exempted trading operations.

71 Disregard of income or losses in the case of exempted trading operations.

72 Transactions between associated persons.

73 Delivery of statements, etc.

74 Exception from Part IV.

75 Reduction of capital allowances.

76 Distributions.

77 Provision for charges on income.

PART VI ASSOCIATED COMPANIES: RELIEF UNDER PARTS IV AND V

78 Relief in relation to transactions between associated companies.

PART VII SPECIAL EXEMPTIONS

79 Reduced rate of corporation tax for certain income.

80 Exemption of income from carrying out of voluntary health insurance schemes.

PART VIII DISTRIBUTIONS OUT OF CERTAIN PROFITS FROM MINING

81 Distributions: profits of certain mines.

82 Distributions out of profits from coal, gypsum and anhydrite mining operations.

PART IX SCHEDULE F AND COMPANY DISTRIBUTIONS

83 Schedule F.

84 Matters to be treated as distributions.

85 Bonus issues following repayment of share capital.

86 Matters to be treated or not treated as repayments of share capital.

87 Distribution supplemental.

88 Tax credit for certain recipients of distributions.

89 Disallowance of reliefs in respect of bonus issues.

90 Distributions made out of capital profits of companies.

91 Distributions by newly resident companies out of profits arising before residence begins.

92 Distributions made before 6th April, 1976.

93 Distributions out of certain exempt profits.

PART X CLOSE COMPANIES

94 Meaning of close company.

95 Certain companies with quoted shares not to be close companies.

96 Certain expenses for participators and associates.

97 Interest paid to directors and director's associates.

98 Loans to participators, etc.

99 Effect of release, etc., of debt in respect of loan under section 98.

100 Distributions to be taken into account and meaning of "distributable income", "investment income", "estate income", etc.

101 Surcharge on close company's undistributed investment and estate income.

102 Meaning of "associated company" and "control".

103 Meaning of "participator", "associate", "director" and "loan creditor".

104 Information.

PART XI GROUP RELIEF

105 Group payments.

106 Election: group payments.

107 Group relief.

108 Group relief: qualifications for entitlement.

109 Group relief: profits or assets available for distribution.

110 Group relief: "the profit distribution".

111 Group relief: "the notional winding up".

112 Group relief: limited rights to profits or assets.

113 Group relief: diminishing share of profits or assets.

114 Group relief: beneficial percentage.

115 Group relief: "the relevant accounting period", etc.

116 Kinds of group relief.

117 Relation of group relief to other relief.

118 Corresponding accounting periods.

119 Companies joining or leaving group or consortium.

120 Group relief: effect of arrangements for transfer of company to another group, etc.

121 Leasing contracts: effect on claims for losses of company reconstructions.

122 Partnerships involving companies: effect of arrangements for transferring relief.

123 Information as to arrangements for transferring relief, etc.

124 Exclusion of double allowances, etc.

125 Claims and adjustments.

PART XII COMPANIES' CAPITAL GAINS

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

127 Company reconstruction or amalgamation: transfer of assets.

128 Interest charged to capital.

129 Groups of companies: definitions.

130 Transfer within a group.

131 Transfers within a group: trading stock.

132 Disposal or acquisition outside a group.

133 Replacement of business assets by members of a group.

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

135 Company ceasing to be member of a group.

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

137 Shares in subsidiary member of a group.

138 Depreciatory transactions in a group.

139 Dividend stripping.

PART XIII APPLICATION AND ADAPTATION OF ENACTMENTS

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

PART XIV ADMINISTRATION

141 Particulars to be supplied by new companies, etc.

142 Notice of liability to corporation tax.

143 Return of profits.

144 Assessment of corporation tax.

145 Collection of corporation tax.

146 Appeals.

147 Application of income tax administrative provisions to corporation tax.

148 Time for certain summary proceedings.

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

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

151 Income tax on payments.

152 Provisions as to tax under section 151.

153 Information.

154 Meaning of "secretary".

PART XV INTERPRETATION AND SUPPLEMENTAL

155 Interpretation.

156 Subsidiaries.

157 Connected persons.

158 Meaning of "control".

159 Chargeable gains accruing to non-resident companies.

160 Individuals resident abroad: tax credit.

161 Rectification of excessive set-off etc. of tax credit.

162 Surcharge on undistributed income of service companies.

163 Relief to certain companies liable to foreign tax.

164 Income tax and corporation profits tax repeals.

165 Section 38 of Finance Act, 1924, not to apply to corporation tax.

166 Amendments and repeals concerning double taxation relief.

167 Computation of payable tax credits where double taxation relief is allowed.

168 Supplemental provisions concerning the determination of reduced Irish tax credit for section 167.

169 Limitations on deductions in respect of interest.

170 Patent royalties: provisions supplemental to section 34 of Finance Act, 1973.

171 Construction of references to income tax paid by deduction and to repayment.

172 Continuation of elections.

PART XVI SAVINGS, TRANSITIONS, ETC.

173 Commencement of corporation tax for existing companies, and transition from income tax.

174 Winding up of corporation profits tax.

175 Capital gains tax losses accruing before 6th April, 1976.

176 Transitional relief for existing companies on cessation of trade, etc.

177 Relief from corporation tax on interest on certain loans.

178 Dividends and other distributions at gross rate or of gross amount.

179 Set-off of losses against franked investment income.

180 Commencement of surcharge on close companies.

181 Income tax relief for losses incurred in 1974-75 and 1975-76.

182 Relief in respect of unrelieved losses and capital allowances carried forward from the year 1975-76.

183 Relief in respect of losses or deficiencies within Case IV or V of Schedule D.

184 Relief in respect of corporation profits tax losses.

185 Terminal losses.

186 Transitional relief in respect of certain payments and management expenses.

187 Repayment of corporation profits tax.

188 Short title and construction.

FIRST SCHEDULE

SECOND SCHEDULE

THIRD SCHEDULE

FOURTH SCHEDULE

FIFTH SCHEDULE

AN ACT TO CHARGE AND IMPOSE ON CERTAIN PROFITS A DUTY OF INLAND REVENUE TO BE KNOWN AS CORPORATION TAX, TO AMEND THE LAW RELATING TO INLAND REVENUE AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE.

[31st March, 1976]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: