Finance (No.2) Act 2023
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Amendment of section 46 of Principal Act (delivery of returns) | ||
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80. (1) Section 46 of the Principal Act is amended— | ||
(a) in subsection (2A)— | ||
(i) in paragraph (a), by the substitution of “tax (if any)” for “tax”, and | ||
(ii) in paragraph (b), by the substitution of “tax (if any)” for “tax”, | ||
(b) in subsection (4)— | ||
(i) in paragraph (aa), by the deletion of “or” where it occurs after “section 93(1),”, and | ||
(ii) by the insertion of the following paragraph after paragraph (aa): | ||
“(ab) the gift is in respect of the use or enjoyment of a specified loan to which subsection (4A) applies, or”, | ||
(c) by the insertion of the following subsection after subsection (4): | ||
“(4A) (a) In this subsection— | ||
‘beneficial owner’, in relation to a company, means any person that is a beneficial owner of— | ||
(i) the shares in the company, or | ||
(ii) the entitlements under any liability incurred by the company (otherwise than for the purposes of the business of the company, wholly and exclusively); | ||
‘close relative’, in relation to a person, means— | ||
(i) a parent of the person, | ||
(ii) the civil partner of a parent of the person, | ||
(iii) a lineal ancestor of the person, | ||
(iv) a lineal descendant of the person, | ||
(v) a brother or sister of the person, | ||
(vi) a brother or sister of a parent of the person, or | ||
(vii) a brother or sister of the civil partner of a parent of the person; | ||
‘company’ has the same meaning as in section 43; | ||
‘loan’ means any loan, advance or any form of credit; | ||
‘relevant period’ has the meaning given to it by section 40(1); | ||
‘share’ has the same meaning as in section 27; | ||
‘specified loan’, in relation to a person, means a loan made— | ||
(i) to the person by a close relative of that person, | ||
(ii) by a company to the person, where a beneficial owner of the company is a close relative of that person, | ||
(iii) to a company, where the person is a beneficial owner of the company and the person making the loan is a close relative of that person, or | ||
(iv) by a company (in this subparagraph referred to as ‘the first-mentioned company’) to another company (in this subparagraph referred to as ‘the second-mentioned company’), where the person is a beneficial owner of the second-mentioned company and a beneficial owner of the first-mentioned company is a close relative of that person; | ||
‘tax reference number’ has the same meaning as in section 172A of the Taxes Consolidation Act 1997 . | ||
(b) This subsection shall apply to a specified loan where— | ||
(i) a person is deemed under section 40(2) to have taken a gift in respect of the use or enjoyment of the specified loan, | ||
(ii) within 6 months of the end of the relevant period in which the gift referred to in subparagraph (i) is so deemed to have been taken, no interest has been paid in respect of the specified loan, and | ||
(iii) the balance outstanding on the specified loan, when aggregated with the balance outstanding on any other specified loan to which subparagraphs (i) and (ii) apply in the relevant period, exceeds €335,000 on at least 1 day in the relevant period. | ||
(c) For the purposes of this subsection— | ||
(i) where any beneficial owner of a company (in this subparagraph referred to as ‘the first-mentioned company’), is itself a company (in this subparagraph referred to as ‘the second-mentioned company’), any beneficial owner of the second-mentioned company is deemed to be a beneficial owner of the first-mentioned company, and | ||
(ii) where the shares and entitlements of a company are held in trust and have no ascertainable beneficial owners, a loan made by such a company is deemed to be made by the disponer who made the disposition under which the shares and entitlements are so held on trust, and a loan made to such a company is deemed to be made to the beneficiaries of the trust. | ||
(d) A return to be delivered in accordance with subsection (2) shall include the following particulars in relation to each specified loan to which this subsection applies: | ||
(i) the name, address and tax reference number of the person who made the loan; | ||
(ii) the balance outstanding on the loan; | ||
(iii) such other information as the Commissioners may reasonably require for the purposes of this Act.”, | ||
and | ||
(d) in subsection (14)— | ||
(i) in paragraph (c), by the substitution of “disponer,” for “disponer, or”, | ||
(ii) in paragraph (d)(ii), by the substitution of “section 93(1), or” for “section 93(1).”, and | ||
(iii) by the insertion of the following paragraph after paragraph (d): | ||
“(e) the gift is in respect of the use or enjoyment of a specified loan to which subsection (4A) applies.”. | ||
(2) Subsection (1) shall come into effect on 1 January 2024. |