Finance Act 2013

Amendment of section 411 (surrender of relief between members of groups and consortia) of Principal Act.

38.— (1) Section 411 of the Principal Act is amended in subsection (1) by substituting the following for paragraph (c):

“(c) In determining for the purposes of this section and the following provisions of this Chapter whether one company (in this paragraph referred to as the ‘first-mentioned company’) is a 75 per cent subsidiary of another company—

(i) the other company shall be treated as not being the owner of—

(I) any share capital which it owns directly in a company if a profit on a sale of the shares would be treated as a trading receipt of its trade,

(II) any share capital which it owns indirectly and which is owned directly by a company for which a profit on the sale of the shares would be a trading receipt, or

(III) any share capital which it owns directly or indirectly in a company that is not a company which, by virtue of the law of a relevant territory, is resident for the purposes of tax in such a relevant territory,

and

(ii) the first-mentioned company shall not be treated as a 75 per cent subsidiary of the other company unless—

(I) that other company, by virtue of the law of a relevant territory, is resident for the purposes of tax in such a relevant territory, or

(II) the principal class of shares of that other company or, where the company is a 75 per cent subsidiary of another company, the principal class of shares of that other company, is substantially and regularly traded on a stock exchange in the State, on one or more than one recognised stock exchange in a relevant territory or territories or on such other stock exchange as may be approved of by the Minister for Finance for the purposes of Chapter 8A of Part 6.”.

(2) (a) Subject to paragraph (b), this section applies as respects accounting periods ending on or after 1 January 2013.

(b) This section shall not have effect in relation to the determination of the amount of loss or other amount available for surrender under section 411(2) of the Principal Act for an accounting period beginning before 1 January 2013 and ending after that date to the extent that the loss or other amount is attributable to the part of the accounting period falling before 1 January 2013.

(c) Any apportionment necessary for the purposes of giving effect to paragraph (b) shall be made in accordance with section 4(6) of the Principal Act.