Finance Act, 1990
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Charge to income tax or corporation tax of offshore income gain. |
67.—(1) If a disposal to which this Chapter applies gives rise, in accordance with the Sixth Schedule , to an offshore income gain, then, subject to the provisions of this section, the amount of that gain shall be treated for all the purposes of the Tax Acts as— | |
(a) income arising at the time of the disposal to the person making the disposal, and | ||
(b) constituting profits or gains chargeable to tax under Case IV of Schedule D for the chargeable period (within the meaning of paragraph 1 (2) of the First Schedule to the Corporation Tax Act, 1976 ) in which the disposal is made. | ||
(2) Subject to subsection (3), section 4 of the Principal Act and section 8 (2) (b) of the Corporation Tax Act, 1976 , shall have effect in relation to income tax or corporation tax in respect of offshore income gains as they have effect in relation to capital gains tax or corporation tax in respect of chargeable gains. | ||
(3) In the application of section 4 of the Principal Act in accordance with subsection (2) of this section, paragraph (c) of subsection (2) of the said section 4 shall have effect with the omission of the words “situated in the State”. | ||
(4) In the case of individuals resident or ordinarily resident but not domiciled in the State subsections (3) and (4) of section 4 of the Principal Act shall have effect in relation to income tax chargeable by virtue of subsection (1) on an offshore income gain as they have effect in relation to capital gains tax in respect of gains accruing to such individuals from the disposal of assets situated outside the State. | ||
(5) (a) A charity shall be exempt from tax in respect of an offshore income gain if the gain is applicable and applied for charitable purposes; but if property held on charitable trusts ceases to be subject to charitable trusts and that property represents directly or indirectly an offshore income gain, the trustees shall be treated as if they had disposed of and immediately reacquired that property for a consideration equal to its market value, any gain (calculated in accordance with the Sixth Schedule ) accruing being treated as an offshore income gain not accruing to a charity. | ||
(b) In paragraph (a) “charity” has the same meaning as it has in section 334 of the Income Tax Act, 1967 , and “market value” has the same meaning as it has in the Principal Act. | ||
(6) In any case where— | ||
(a) a disposal to which this Chapter applies is a disposal of settled property, within the meaning of the Principal Act, and | ||
(b) for the purposes of the Principal Act, the general administration of the trusts is ordinarily carried on outside the State and the trustees or a majority of them for the time being are not resident or not ordinarily resident in the State, | ||
then subsection (1) shall not apply in relation to any offshore income gain to which the disposal gives rise. |