Finance Act, 1990

Income tax on payments made by non-resident companies.

51.—(1) Subject to subsection (4), the provisions of subsection (2) shall have effect as respects an accounting period of a company which is not resident in the State if the company is—

(a) required, by virtue of the provisions of section 434 (2) of the Income Tax Act, 1967 , to deliver an account to the Revenue Commissioners, and

(b) within the charge to corporation tax in respect of the accounting period.

(2) Where this subsection has effect as respects an accounting period of a company, then—

(a) the company shall make a return to the inspector of—

(i) payments made by the company in the accounting period and in respect of which income tax is required to be deducted by virtue of the provisions of section 434 (1) of the Income Tax Act, 1967 , and

(ii) the tax deducted out of those payments by virtue of the said section 434 (1),

and

(b) income tax in respect of which a return falls to be made under paragraph (a) shall, for the purposes of the charge, assessment, collection and recovery from the company making the payments of that tax and of any interest or penalties thereon, be treated as if it were corporation tax chargeable for the accounting period for which the return is required under paragraph (a).

(3) Section 434 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (5A) (inserted by section 151 of the Corporation Tax Act, 1976 ) of the following subsection:

“(5A) Subsections (2), (3) and (5) have effect subject to the provisions of section 151 of the Corporation Tax Act, 1976 , and section 51 of the Finance Act, 1990, with respect to the time and manner in which certain companies are to account for and pay income tax in respect of—

(a) payments from which tax is deductible, and

(b) any amount which is deemed to be an annual payment.”.

(4) This section shall have effect as respects accounting periods ending on or after the 1st day of April, 1990.