Taxes Consolidation Act, 1997

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Number 39 of 1997


TAXES CONSOLIDATION ACT, 1997


ARRANGEMENT OF PARTS, CHAPTERS AND SCHEDULES

INTERPRETATION AND BASIC CHARGING PROVISIONS

PART 1

Interpretation

PART 2

The Charge to tax

CHAPTER 1

Income tax

CHAPTER 2

Corporation tax

CHAPTER 3

Capital gains tax

INCOME TAX AND CORPORATION TAX: THE MAIN PROVISIONS

PART 3

Provisions Relating to the Schedule C Charge and Government and Other Public Securities

CHAPTER 1

Principal provisions relating to the Schedule C charge

CHAPTER 2

Government and other public securities: interest payable without deduction of tax

CHAPTER 3

Government and other public securities: exemptions from tax

CHAPTER 4

Miscellaneous provisions

PART 4

Principal Provisions Relating to the Schedule D Charge

CHAPTER 1

Supplementary charging provisions

CHAPTER 2

Foreign dividends

CHAPTER 3

Income tax: basis of assessment under Cases I and II

CHAPTER 4

Income tax: basis of assessment under Cases III, IV and

CHAPTER 5

Computational provisions: corporation tax

CHAPTER 6

Computational provisions: general

CHAPTER 7

Special measures on discontinuance of, and change of sis of computation of profits or gains of, a trade or profession

CHAPTER 8

Taxation of rents and certain other payments

CHAPTER 9

Miscellaneous provisions

PART 5

Principal Provisions Relating to the Schedule E Charge

CHAPTER 1

Basis of assessment, persons chargeable and extent of charge

CHAPTER 2

Computational provisions

CHAPTER 3

Expenses allowances and provisions relating to the general benefits in kind charge

CHAPTER 4

Other benefit in kind charges

CHAPTER 5

Miscellaneous charging provisions

PART 6

Company Distributions, Tax Credits, Franked Investment Income and Advance Corporation Tax

CHAPTER 1

Taxation of company distributions

CHAPTER 2

Meaning of distribution

CHAPTER 3

Distributions and tax credits— general

CHAPTER 4

Distributions out of certain exempt profits or gains or out of certain relieved income

CHAPTER 5

Distributions out of certain income of manufacturing companies

CHAPTER 6

Distributions— supplemental

CHAPTER 7

Franked investment income

CHAPTER 8

Advance corporation tax

CHAPTER 9

Taxation of acquisition by a company of its own shares

PART 7

Income Tax and Corporation Tax Exemptions

CHAPTER 1

Income tax

CHAPTER 2

Corporation tax

CHAPTER 3

Income tax and corporation tax

PART 8

Annual Payments, Charges and Interest

CHAPTER 1

Annual payments

CHAPTER 2

Charges on income for corporation tax purposes

CHAPTER 3

Principal provisions relating to the payment of interest

CHAPTER 4

Interest payments by certain deposit takers

PART 9

Principal Provisions Relating to Relief for Capital Expenditure

CHAPTER 1

Industrial buildings or structures: industrial building allowances, writing-down allowances, balancing allowances and balancing charges

CHAPTER 2

Machinery or plant: initial allowances, wear and tear allowances, balancing allowances and balancing charges

CHAPTER 3

Dredging: initial allowances and annual allowances

CHAPTER 4

Miscellaneous and general

PART 10

Income Tax and Corporation Tax: Reliefs for Renewal and Improvement of Certain Urban Areas, Certain Resort Areas and Certain Islands

CHAPTER 1

Custom House Docks Area

CHAPTER 2

Temple Bar Area

CHAPTER 3

Designated areas, designated streets, enterprise areas and multi-storey car parks in certain urban areas

CHAPTER 4

Qualifying resort areas

CHAPTER 5

Designated islands

CHAPTER 6

Dublin Docklands Area

PART 11

Capital Allowances and Expenses for Certain Road Vehicles

PART 12

Principal Provisions Relating to Loss Relief, Treatment of Certain Losses and Capital Allowances, and Group Relief

CHAPTER 1

Income tax: loss relief

CHAPTER 2

Income tax: loss relief— treatment of capital allowances

CHAPTER 3

Corporation tax: loss relief

CHAPTER 4

Income tax and corporation tax: treatment of certain losses and certain capital allowances

CHAPTER 5

Group relief

PART 13

Close Companies

CHAPTER 1

Interpretation and general

CHAPTER 2

Additional matters to be treated as distributions, charges to tax in respect of certain loans and surcharges on certain undistributed income

PART 14

Taxation of Companies Engaged in Manufacturing Trades, Certain Trading Operations Carried on in Shannon Airport and Certain Trading Operations Carried on in the Custom House Docks Area

CHAPTER 1

Interpretation and general

CHAPTER 2

Principal provisions

PART 15

Personal Allowances and Reliefs and Certain Other Income Tax and Corporation Tax Reliefs

CHAPTER 1

Personal allowances and reliefs

CHAPTER 2

Income tax and corporation tax: reliefs applicable to both

CHAPTER 3

Corporation tax reliefs

PART 16

Income Tax Relief for Investment in Corporate Trades— Business Expansion Scheme and Seed Capital Scheme

PART 17

Profit Sharing Schemes and Employee Share Ownership Trusts

CHAPTER 1

Profit sharing schemes

CHAPTER 2

Employee share ownership trusts

PART 18

Payments in Respect of Professional Services By Certain Persons and Payments to Subcontractors in Certain Industries

CHAPTER 1

Payments in respect of professional services by certain persons

CHAPTER 2

Payments to subcontractors in certain industries

TAXATION OF CHARGEABLE GAINS

PART 19

Principal Provisions Relating to Taxation of Chargeable Gains

CHAPTER 1

Assets and acquisitions and disposals of assets

CHAPTER 2

Computation of chargeable gains and allowable losses

CHAPTER 3

Assets held in a fiduciary or representative capacity inheritances and settlements

CHAPTER 4

Shares and securities

CHAPTER 5

Life assurance and deferred annuities

CHAPTER 6

Transfer of business assets

CHAPTER 7

Other reliefs and exemptions

PART 20

Companies' Chargeable Gains

CHAPTER 1

General

CHAPTER 2

Provisions where companies cease to be resident in the State

PART 21

Mergers, Divisions, Transfers Of Assets and Exchanges Of Shares Concerning Companies Of Different Member States

TRANSACTIONS IN LAND

PART 22

Provisions Relating to Dealing in or Developing Land and Disposals of Development Land

CHAPTER 1

Income tax and corporation tax: profits or gains from dealing in or developing land

CHAPTER 2

Capital gains tax: disposals of development land

OTHER SPECIAL PROVISIONS

PART 23

Farming and Market Gardening

CHAPTER 1

Interpretation and general

CHAPTER 2

Farming: relief for increase in stock values

PART 24

Taxation of Profits of Certain Mines and Petroleum Taxation

CHAPTER 1

Taxation of profits of certain mines

CHAPTER 2

Petroleum taxation

PART 25

Industrial and Provident Societies, Building Societies, and Trustee Savings Banks

CHAPTER 1

Industrial and provident societies

CHAPTER 2

Building societies

CHAPTER 3

Trustee savings banks

PART 26

Life Assurance Companies

CHAPTER 1

General provisions

CHAPTER 2

Special investment policies

CHAPTER 3

Provisions applying to overseas life assurance companies

PART 27

Unit Trusts and Offshore Funds

CHAPTER 1

Unit trusts

CHAPTER 2

Offshore funds

PART 28

Purchase and Sale of Securities

CHAPTER 1

Purchase and sale of securities

CHAPTER 2

Purchases of shares by financial concerns and persons exempted from tax, and restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits

PART 29

Patents, Scientific and Certain Other Research, Know-How and Certain Training

CHAPTER 1

Patents

CHAPTER 2

Scientific and certain other research

CHAPTER 3

Know-how and certain training

PART 30

Occupational Pension Schemes, Retirement Annuities, Purchased Life Annuities and Certain Pensions

CHAPTER 1

Occupational pension schemes

CHAPTER 2

Retirement annuities

CHAPTER 3

Purchased life annuities

CHAPTER 4

Miscellaneous

PART 31

Taxation of Settlors, Etc., In Respect of Settled or Transferred Income

CHAPTER 1

Revocable dispositions for short periods and certain dispositions in favour of children

CHAPTER 2

Settlements on children generally

PART 32

Estates of Deceased Persons in Course of Administration and Surcharge on Certain Income of Trustees

CHAPTER 1

Estates of deceased persons in course of administration

CHAPTER 2

Surcharge on certain income of trustees

PART 33

Anti-Avoidance

CHAPTER 1

Transfer of assets abroad

CHAPTER 2

Miscellaneous

PART 34

Provisions Relating to the Residence of Individuals

PART 35

Double Taxation Relief

CHAPTER 1

Principal reliefs

CHAPTER 2

Miscellaneous

PART 36

Miscellaneous Special Provisions

MANAGEMENT PROVISIONS

PART 37

Administration

PART 38

Returns of Income and Gains, Other Obligations and Returns, and Revenue Powers

CHAPTER 1

Income tax: returns of income

CHAPTER 2

Corporation tax: returns of profits

CHAPTER 3

Other obligations and returns

CHAPTER 4

Revenue powers

CHAPTER 5

Capital gains tax: returns, information, etc.

PART 39

Assessments

CHAPTER 1

Income tax and corporation tax

CHAPTER 2

Provision against double assessment and relief for error or mistake

CHAPTER 3

Capital gains tax

PART 40

Appeals

CHAPTER 1

Appeals against income tax and corporation tax assessments

CHAPTER 2

Appeals against capital gains tax assessments

CHAPTER 3

Miscellaneous

PART 41

Self Assessment

PART 42

Collection and Recovery

CHAPTER 1

Income tax

CHAPTER 2

Corporation tax

CHAPTER 3

Capital gains tax

CHAPTER 4

Collection and recovery of income tax on certain emoluments (PAYE system)

CHAPTER 5

Miscellaneous provisions

PART 43

Partnerships and European Economic Interest Groupings (EEIG)

PART 44

Married, Separated and Divorced Persons

CHAPTER 1

Income tax

CHAPTER 2

Capital gains tax

PART 45

Charging and Assessing of Non-Residents

CHAPTER 1

Income tax and corporation tax

CHAPTER 2

Capital gains tax

PART 46

Persons Chargeable in a Representative Capacity

CHAPTER 1

Income tax and corporation tax

CHAPTER 2

Capital gains tax

PART 47

Penalties, Revenue Offences, Interest on Overdue Tax and Other Sanctions

CHAPTER 1

Income tax and corporation tax penalties

CHAPTER 2

Other corporation tax penalties

CHAPTER 3

Capital gains tax penalties

CHAPTER 4

Revenue offences

CHAPTER 5

Interest on overdue tax

CHAPTER 6

Other sanctions

PART 48

Miscellaneous and Supplemental

PART 49

Commencement, Repeals, Transitional Provisions, Etc

SCHEDULE 1

Supplementary Provisions Concerning the Extension of Charge to Tax to Profits and Income Derived From Activities Carried on and Employments Exercised on the Continental Shelf

SCHEDULE 2

Machinery for Assessment, Charge and Payment of Tax Under Schedule C and, in Certain Cases, Schedule D

SCHEDULE 3

Reliefs in Respect of Income Tax Charged on Payments on Retirement, Etc

SCHEDULE 4

Exemption of Specified Non-Commercial State Sponsored Bodies From Certain Tax Provisions

SCHEDULE 5

Description of Custom House Docks Area

SCHEDULE 6

Description of Temple Bar Area

SCHEDULE 7

Description of Certain Enterprise Areas

SCHEDULE 8

Description of Qualifying Resort Areas

SCHEDULE 9

Change in Ownership of Company: Disallowance of Trading Losses

SCHEDULE 10

Relief for Investment in Corporate Trades: Subsidiaries

SCHEDULE 11

Profit Sharing Schemes

SCHEDULE 12

Employee Share Ownership Trusts

SCHEDULE 13

Accountable Persons for purposes of Chapter 1 of Part 18

SCHEDULE 14

Capital Gains Tax: Leases

SCHEDULE 15

List of Bodies for Purposes of Section 610

SCHEDULE 16

Building Societies: Change of Status

SCHEDULE 17

Reorganisation into Companies of Trustee Savings Banks

SCHEDULE 18

Accounting for and Payment of Tax Deducted from Relevant Payments and Undistributed Relevant Income

SCHEDULE 19

Offshore Funds: Distributing Funds

SCHEDULE 20

Offshore Funds: Computation of Offshore Income Gains

SCHEDULE 21

Purchase and Sale of Securities: Appropriate Amount in Respect of the Interest

SCHEDULE 22

Dividends Regarded as Paid Out of Profits Accumulated Before Given Date

SCHEDULE 23

Occupational Pension Schemes

SCHEDULE 24

Relief from Income Tax and Corporation Tax by Means of Credit in Respect of Foreign Tax

SCHEDULE 25

Convention Between the Government of Ireland and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income

SCHEDULE 26

Replacement of Harbour Authorities by Port Companies

SCHEDULE 27

Forms of Declarations to be Made by Certain Persons

SCHEDULE 28

Statements, Lists and Declarations

SCHEDULE 29

Provisions Referred to in Sections 1052, 1053 and 1054

SCHEDULE 30

Repeals

SCHEDULE 31

Consequential Amendments

SCHEDULE 32

Transitional Provisions

ARRANGEMENT OF SECTIONS

INTERPRETATION AND BASIC CHARGING PROVISIONS

PART 1

Interpretation

Section

1.

Interpretation of this Act.

2.

Interpretation of Tax Acts.

3.

Interpretation of Income Tax Acts.

4.

Interpretation of Corporation Tax Acts.

5.

Interpretation of Capital Gains Tax Acts.

6.

Construction of references to child in Tax Acts and Capital Gains Tax Acts.

7.

Application to certain taxing statutes of Age of Majority Act, 1985.

8.

Construction of certain taxing statutes in accordance with Status of Children Act, 1987.

9.

Subsidiaries.

10.

Connected persons.

11.

Meaning of “control” in certain contexts.

PART 2

The Charge to Tax

CHAPTER 1

Income tax

12.

The charge to income tax.

13.

Extension of charge to income tax to profits and income derived from activities carried on and employments exercised on the Continental Shelf.

14.

Fractions of a pound and yearly assessments.

15.

Rate of charge.

16.

Income tax charged by deduction.

17.

Schedule C.

18.

Schedule D.

19.

Schedule E.

20.

Schedule F.

CHAPTER 2

Corporation tax

21.

The charge to corporation tax and exclusion of income tax and capital gains tax.

22.

Reduced rate of corporation tax for certain income.

23.

Application of section 13 for purposes of corporation tax.

24.

Companies resident in the State: income tax on payments made or received.

25.

Companies not resident in the State.

26.

General scheme of corporation tax.

27.

Basis of, and periods for, assessment.

CHAPTER 3

Capital gains tax

28.

Taxation of capital gains and rate of charge.

29.

Persons chargeable.

30.

Partnerships.

31.

Amount chargeable.

INCOME TAX AND CORPORATION TAX: THE MAIN PROVISIONS

PART 3

Provisions Relating to the Schedule C Charge and Government and Other Public Securities

CHAPTER 1

Principal provisions relating to the Schedule C charge

32.

Interpretation (Chapter 1).

33.

Method of charge and payment.

34.

Stock, dividends or interest belonging to the State.

35.

Securities of foreign territories.

CHAPTER 2

Government and other public securities: interest payable without deduction of tax

36.

Government securities.

37.

Securities of certain State-owned companies.

38.

Certain State-guaranteed securities.

39.

Securities of certain European bodies.

40.

Securities of International Bank for Reconstruction and Development.

41.

Securities of designated bodies under the Securitisation (Proceeds of Certain Mortgages) Act, 1995.

CHAPTER 3

Government and other public securities: exemptions from tax

42.

Exemption of interest on savings certificates.

43.

Certain securities issued by Minister for Finance.

44.

Exemption from corporation tax of certain securities issued by Minister for Finance.

45.

Exemption of non-interest-bearing securities.

46.

Exemption of premiums on Investment Bonds.

47.

Certain securities of ACC Bank plc.

48.

Exemption of premiums on certain securities.

49.

Exemption of certain securities.

50.

Securities of Irish local authorities issued abroad.

CHAPTER 4

Miscellaneous provisions

51.

Funding bonds issued in respect of interest on certain debts.

PART 4

Principal Provisions Relating to the Schedule D Charge

CHAPTER 1

Supplementary charging provisions

52.

Persons chargeable.

53.

Cattle and milk dealers.

54.

Interest, etc. paid without deduction of tax under Schedule C.

55.

Taxation of strips of securities.

56.

Tax on quarries, mines and other concerns chargeable under Case I(b) of Schedule D

57.

Extension of charge to tax under Case III of Schedule D in certain circumstances.

58.

Charge to tax of profits or gains from unknown or unlawful source.

59.

Charge to tax of income from which tax has been deducted.

CHAPTER 2

Foreign dividends

60.

Interpretation (Chapter 2).

61.

Dividends entrusted for payment in the State.

62.

Dividends paid outside the State and proceeds of sale of dividend coupons.

63.

Exemption of dividends of non-residents.

64.

Interest on quoted Eurobonds.

CHAPTER 3

Income tax: basis of assessment under Cases I and II

65.

Cases I and II: basis of assessment.

66.

Special basis at commencement of trade or profession.

67.

Special basis on discontinuance of trade or profession.

68.

Short-lived businesses.

69.

Changes of proprietorship.

CHAPTER 4

Income tax: basis of assessment under Cases III, IV and V

70.

Case III: basis of assessment.

71.

Foreign securities and possessions.

72.

Charge to tax on sums applied outside the State in repaying certain loans.

73.

Income from certain possessions in Great Britain or Northern Ireland.

74.

Case IV: basis of assessment.

75.

Case V: basis of assessment.

CHAPTER 5

Computational provisions: corporation tax

76.

Computation of income: application of income tax principles.

77.

Miscellaneous special rules for computation of income

78.

Computation of companies' chargeable gains.

79.

Foreign currency: computation of income and chargeable gains.

80.

Taxation of certain foreign currencies.

CHAPTER 6

Computational provisions: general

81.

General rule as to deductions.

82.

Pre-trading expenditure.

83.

Expenses of management of investment companies.

84.

Expenses in relation to establishment or alteration of superannuation schemes.

85.

Deduction for certain industrial premises.

86.

Cost of registration of trade marks.

87.

Debts set off against profits and subsequently released.

88.

Deduction for gifts to Enterprise Trust Ltd.

CHAPTER 7

Special measures on discontinuance of, and change of basis of computation of profits or gains of, a trade or profession

89.

Valuation of trading stock at discontinuance of trade.

90.

Valuation of work in progress at discontinuance of profession.

91.

Receipts accruing after discontinuance of trade or profession.

92.

Receipts and losses accruing after change treated as discontinuance.

93.

Cash basis, etc: relief for certain individuals.

94.

Conventional basis: general charge on receipts after change of basis.

95.

Supplementary provisions as to tax under section 91 or 94.

CHAPTER 8

Taxation of rents and certain other payments

96.

Interpretation (Chapter 8).

97.

Computational rules and allowable deductions.

98.

Treatment of premiums, etc. as rent.

99.

Charge on assignment of lease granted at undervalue.

100.

Charge on sale of land with right to reconveyance.

101.

Relief for amount not received.

102.

Deduction by reference to premium, etc. paid in computation of profits for purposes of Schedule D, Cases I and II.

103.

Deduction by reference to premiums, etc. paid in computation of profits for purposes of this Chapter.

104.

Taxation of certain rents and other payments.

105.

Taxation of rents: restriction in respect of certain rent and interest.

106.

Tax treatment of receipts and outgoings on sale of premises.

CHAPTER 9

Miscellaneous provisions

107.

Apportionment of profits.

108.

Statement of profits.

109.

Payments in respect of redundancy.

110.

Securitisation of assets.

111.

Allowance to owner of let mineral rights for expenses of management of minerals.

PART 5

Principal Provisions Relating to the Schedule E Charge

CHAPTER 1

Basis of assessment, persons chargeable and extent of charge

112.

Basis of assessment, persons chargeable and extent of charge.

CHAPTER 2

Computational provisions

113.

Making of deductions.

114.

General rule as to deductions.

115.

Fixed deduction for certain classes of persons.

CHAPTER 3

Expenses allowances and provisions relating to the general benefits in kind charge

116.

Interpretation (Chapter 3).

117.

Expenses allowances.

118.

Benefits in kind: general charging provision.

119.

Valuation of benefits in kind.

120.

Unincorporated bodies, partnerships and individuals.

CHAPTER 4

Other benefit in kind charges

121.

Benefit of use of car.

122.

Preferential loan arrangements.

CHAPTER 5

Miscellaneous charging provisions

123.

General tax treatment of payments on retirement or removal from office or employment.

124.

Tax treatment of certain severance payments.

125.

Tax treatment of benefits received under permanent health benefit schemes.

126.

Tax treatment of certain benefits payable under Social Welfare Acts.

127.

Tax treatment of restrictive covenants.

128.

Tax treatment of directors of companies and employees granted rights to acquire shares or other assets.

PART 6

Company Distributions, Tax Credits, Franked Investment Income and Advance Corporation Tax

CHAPTER 1

Taxation of company distributions

129.

Irish resident company distributions not generally chargeable to corporation tax.

CHAPTER 2

Meaning of distribution

130.

Matters to be treated as distributions.

131.

Bonus issues following repayment of share capital.

132.

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

133.

Limitation on meaning of “distribution”— general.

134.

Limitation on meaning of “distribution” in relation to certain payments made in respect of “foreign source” finance.

135.

Distributions: supplemental.

CHAPTER 3

Distributions and tax credits— general

136.

Tax credit for certain recipients of distributions.

137.

Disallowance of reliefs in respect of bonus issues.

138.

Treatment of dividends on certain preference shares.

139.

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

CHAPTER 4

Distributions out of certain exempt profits or gains or out of certain relieved income

140.

Distributions out of profits or gains from stallion fees, stud greyhound services fees and occupation of certain woodlands.

141.

Distributions out of income from patent royalties.

142.

Distributions out of profits of certain mines.

143.

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

144.

Distributions out of profits from trading within Shannon Airport.

145.

Distributions out of profits from export of certain goods.

146.

Provisions supplementary to section 145.

CHAPTER 5

Distributions out of certain income of manufacturing companies

147.

Distributions.

148.

Treatment of certain deductions in relation to relevant distributions.

149.

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

150.

Tax credit for recipients of certain distributions.

151.

Appeals.

CHAPTER 6

Distributions— supplemental

152.

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

153.

Distributions to non-residents.

154.

Attribution of distributions to accounting periods.

155.

Restriction of certain reliefs in respect of distributions out of certain exempt or relieved profits.

CHAPTER 7

Franked investment income

156.

Franked investment income and franked payments.

157.

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

158.

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

CHAPTER 8

Advance corporation tax

159.

Liability for advance corporation tax.

160.

Set-off of advance corporation tax.

161.

Rectification of excessive set-off of advance corporation tax.

162.

Calculation of advance corporation tax where company receives distributions.

163.

Tax credit recovered from company.

164.

Restrictions as to payment of tax credit.

165.

Group dividends.

166.

Surrender of advance corporation tax.

167.

Change of ownership of company: calculation and treatment of advance corporation tax.

168.

Distributions to certain non-resident companies.

169.

Non-distributing investment companies.

170.

Interest in respect of certain securities.

171.

Returns, payment and collection of advance corporation tax.

172.

Application of Corporation Tax Acts.

CHAPTER 9

Taxation of acquisition by a company of its own shares

173.

Interpretation (Chapter 9).

174.

Taxation of dealer's receipts on purchase of shares by issuing company or by its subsidiary.

175.

Purchase of own shares by quoted company.

176.

Purchase of unquoted shares by issuing company or its subsidiary.

177.

Conditions as to residence and period of ownership.

178.

Conditions as to reduction of vendor's interest as shareholder.

179.

Conditions applicable where purchasing company is member of a group.

180.

Additional conditions.

181.

Relaxation of conditions in certain cases.

182.

Returns.

183.

Information.

184.

Treasury shares.

185.

Associated persons.

186.

Connected persons.

PART 7

Income Tax and Corporation Tax Exemptions

CHAPTER 1

Income tax

187.

Exemption from income tax and associated marginal relief.

188.

Age exemption and associated marginal relief.

189.

Payments in respect of personal injuries.

190.

Certain payments made by the Haemophilia HIV Trust.

191.

Taxation treatment of Hepatitis C compensation payments.

192.

Payments in respect of thalidomide children.

193.

Income from scholarships.

194.

Child benefit.

195.

Exemption of certain earnings of writers, composers and artists.

196.

Expenses of members of judiciary.

197.

Bonus or interest paid under instalment savings schemes.

198.

Certain interest not to be chargeable.

199.

Interest on certain securities.

200.

Certain foreign pensions.

201.

Exemptions and reliefs in respect of tax under section 123.

202.

Relief for agreed pay restructuring.

203.

Payments in respect of redundancy.

204.

Military and other pensions, gratuities and allowances.

205.

Veterans of War of Independence.

206.

Income from investments under Social Welfare (Consolidation) Act, 1993.

207.

Rents of properties belonging to hospitals and other charities.

208.

Lands owned and occupied, and trades carried on by, charities.

209.

Bodies for the promotion of Universal Declaration of Human Rights and the implementation of European Convention for the Protection of Human Rights and Fundamental Freedoms.

210.

The Great Book of Ireland Trust.

211.

Friendly societies.

212.

Credit unions.

213.

Trade unions.

214.

Local authorities, etc.

215.

Certain profits of agricultural societies.

216.

Profits from lotteries.

CHAPTER 2

Corporation tax

217.

Certain income of Nítrigin Éireann Teoranta.

218.

Certain income of Housing Finance Agency plc.

219.

Income of body designated under Irish Takeover Panel Act, 1997.

220.

Profits of certain bodies corporate.

221.

Certain payments to National Co-operative Farm Relief Services Ltd and certain payments made to its members.

222.

Certain dividends from a non-resident subsidiary.

CHAPTER 3

Income tax and corporation tax

223.

Small enterprise grants.

224.

Grants to medium and large industrial undertakings.

225.

Employment grants.

226.

Certain employment grants and recruitment subsidies.

227.

Certain income arising to specified non-commercial state-sponsored bodies.

228.

Income arising to designated bodies under the Securitisation (Proceeds of Certain Mortgages) Act, 1995.

229.

Harbour authorities and port companies.

230.

National Treasury Management Agency.

231.

Profits or gains from stallion fees.

232.

Profits from occupation of certain woodlands.

233.

Stud greyhound service fees.

234.

Certain income derived from patent royalties.

235.

Bodies established for promotion of athletic or amateur games or sports.

236.

Loan of certain art objects.

PART 8

Annual Payments, Charges and Interest

CHAPTER 1

Annual payments

237.

Annual payments payable wholly out of taxed income.

238.

Annual payments not payable out of taxed income.

239.

Income tax on payments by resident companies.

240.

Provisions as to tax under section 239.

241.

Income tax on payments by non-resident companies.

242.

Annual payments for non-taxable consideration.

CHAPTER 2

Charges on income for corporation tax purposes

243.

Allowance of charges on income.

CHAPTER 3

Principal provisions relating to the payment of interest

244.

Relief for interest paid on certain home loans.

245.

Relief for certain bridging loans.

246.

Interest payments by companies and to non-residents.

247.

Relief to companies on loans applied in acquiring interest in other companies.

248.

Relief to individuals on loans applied in acquiring interest in companies.

249.

Rules relating to recovery of capital and replacement loans.

250.

Extension of relief under section 248 to certain individuals in relation to loans applied in acquiring interest in certain companies.

251.

Restriction of relief to individuals on loans applied in acquiring shares in companies where a claim for “BES relief” or “film relief” is made in respect of amount subscribed for shares.

252.

Restriction of relief to individuals on loans applied in acquiring interest in companies which become quoted companies.

253.

Relief to individuals on loans applied in acquiring interest in partnerships.

254.

Interest on borrowings to replace capital withdrawn in certain circumstances from a business.

255.

Arrangements for payment of interest less tax or of fixed net amount.

CHAPTER 4

Interest payments by certain deposit takers

256.

Interpretation (Chapter 4).

257.

Deduction of tax from relevant interest.

258.

Returns and collection of appropriate tax.

259.

Alternative amount on account of appropriate tax.

260.

Provisions supplemental to sections 258 and 259.

261.

Taxation of relevant interest, etc.

262.

Statement furnished by relevant deposit taker.

263.

Declarations relating to deposits of non-residents.

264.

Conditions and declarations relating to special savings accounts.

265.

Declarations by companies and pension schemes.

266.

Declarations relating to deposits of charities.

267.

Repayment of appropriate tax in certain cases.

PART 9

Principal Provisions Relating to Relief for Capital Expenditure

CHAPTER 1

Industrial buildings or structures: industrial building allowances, writing-down allowances, balancing allowances and balancing charges

268.

Meaning of “industrial building or structure”.

269.

Meaning of “the relevant interest”.

270.

Meaning of “expenditure on construction of building or structure”.

271.

Industrial building allowances.

272.

Writing-down allowances.

273.

Acceleration of writing-down allowances in respect of certain expenditure on certain industrial buildings or structures.

274.

Balancing allowances and balancing charges.

275.

Restriction of balancing allowances on sale of industrial building or structure.

276.

Application of sections 272 and 274 in relation to capital expenditure on refurbishment.

277.

Writing off of expenditure and meaning of “residue of expenditure”.

278.

Manner of making allowances and charges.

279.

Purchases of certain buildings or structures.

280.

Temporary disuse of building or structure.

281.

Special provisions in regard to leases.

282.

Supplementary provisions (Chapter 1).

CHAPTER 2

Machinery or plant: initial allowances, wear and tear allowances, balancing allowances and balancing charges

283.

Initial allowances.

284.

Wear and tear allowances.

285.

Acceleration of wear and tear allowances.

286.

Increased wear and tear allowances for taxis and cars for short-term hire.

287.

Wear and tear allowances deemed to have been made in certain cases.

288.

Balancing allowances and balancing charges.

289.

Calculation of balancing allowances and balancing charges in certain cases.

290.

Option in case of replacement.

291.

Computer software.

292.

Meaning of “amount still unallowed”.

293.

Application to partnerships.

294.

Machinery or plant used partly for non-trading purposes.

295.

Option in case of succession under will or intestacy.

296.

Balancing allowances and balancing charges: wear and tear allowances deemed to have been made in certain cases.

297.

Subsidies towards wear and tear.

298.

Allowances to lessors.

299.

Allowances to lessees.

300.

Manner of making allowances and charges.

301.

Application to professions, employments and offices.

CHAPTER 3

Dredging: initial allowances and annual allowances

302.

Interpretation (Chapter 3).

303.

Allowances for expenditure on dredging.

CHAPTER 4

Miscellaneous and general

304.

Income tax: allowances and charges in taxing a trade, etc.

305.

Income tax: manner of granting, and effect of, allowances made by means of discharge or repayment of tax.

306.

Meaning of basis period.

307.

Corporation tax: allowances and charges in taxing a trade.

308.

Corporation tax: manner of granting, and effect of, allowances made by means of discharge or repayment of tax.

309.

Companies not resident in the State.

310.

Allowances in respect of certain contributions to capital expenditure of local authorities.

311.

Apportionment of consideration and exchanges and surrenders of leasehold interests.

312.

Special provisions as to certain sales.

313.

Effect, in certain cases, of succession to trade, etc.

314.

Procedure on apportionment.

315.

Property used for purposes of “exempted trading operations”.

316.

Interpretation of certain references to expenditure and time when expenditure is incurred.

317.

Treatment of grants.

318.

Meaning of “sale, insurance, salvage or compensation moneys”.

319.

Adjustment of allowances by reference to value-added tax.

320.

Other interpretation (Part 9).

321.

Provisions of general application in relation to the making of allowances and charges.

PART 10

Income Tax and Corporation Tax: Reliefs for Renewal and Improvement of Certain Urban Areas, Certain Resort Areas and Certain Islands

CHAPTER 1

Custom House Docks Area

322.

Interpretation (Chapter 1).

323.

Capital allowances in relation to construction of certain commercial premises.

324.

Double rent allowance in respect of rent paid for certain business premises.

325.

Rented residential accommodation: deduction for certain expenditure on construction.

326.

Rented residential accommodation: deduction for certain expenditure on conversion.

327.

Rented residential accommodation: deduction for certain expenditure on refurbishment.

328.

Residential accommodation: allowance to owner-occupiers in respect of certain expenditure on construction or refurbishment.

329.

Provisions supplementary to sections 325 to 328.

CHAPTER 2

Temple Bar Area

330.

Interpretation (Chapter 2).

331.

Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.

332.

Capital allowances in relation to construction or refurbishment of certain commercial premises.

333.

Double rent allowance in respect of rent paid for certain business premises.

334.

Rented residential accommodation: deduction for certain expenditure on construction.

335.

Rented residential accommodation: deduction for certain expenditure on conversion.

336.

Rented residential accommodation: deduction for certain expenditure on refurbishment.

337.

Residential accommodation: allowance to owner-occupiers in respect of certain expenditure on construction or refurbishment.

338.

Provisions supplementary to sections 334 to 337.

CHAPTER 3

Designated areas, designated streets, enterprise areas and multi-storey car parks in certain urban areas

339.

Interpretation (Chapter 3).

340.

Designated areas, designated streets and enterprise areas.

341.

Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.

342.

Capital allowances in relation to construction or refurbishment of certain commercial premises.

343.

Capital allowances in relation to construction or refurbishment of certain buildings or structures in enterprise areas.

344.

Capital allowances in relation to construction or refurbishment of certain multi-storey car parks.

345.

Double rent allowance in respect of rent paid for certain business premises.

346.

Rented residential accommodation: deduction for certain expenditure on construction.

347.

Rented residential accommodation: deduction for certain expenditure on conversion.

348.

Rented residential accommodation: deduction for certain expenditure on refurbishment.

349.

Residential accommodation: allowance to owner-occupiers in respect of certain expenditure on construction or refurbishment.

350.

Provisions supplementary to sections 346 to 349.

CHAPTER 4

Qualifying resort areas

351.

Interpretation (Chapter 4).

352.

Accelerated capital allowances in relation to the construction or refurbishment of certain industrial buildings or structures.

353.

Capital allowances in relation to the construction or refurbishment of certain commercial premises.

354.

Double rent allowance in respect of rent paid for certain business premises.

355.

Disclaimer of capital allowances on holiday cottages, holiday apartments, etc.

356.

Rented residential accommodation: deduction for certain expenditure on construction.

357.

Rented residential accommodation: deduction for certain expenditure on conversion.

358.

Rented residential accommodation: deduction for certain expenditure on refurbishment.

359.

Provisions supplementary to sections 356 to 358.

CHAPTER 5

Designated islands

360.

Interpretation (Chapter 5).

361.

Rented residential accommodation: deduction for certain expenditure on construction.

362.

Rented residential accommodation: deduction for certain expenditure on conversion.

363.

Rented residential accommodation: deduction for certain expenditure on refurbishment.

364.

Residential accommodation: allowance to owner-occupiers in respect of certain expenditure on construction or refurbishment.

365.

Provisions supplementary to sections 360 to 364.

CHAPTER 6

Dublin Docklands Area

366.

Interpretation (Chapter 6).

367.

Qualifying areas.

368.

Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.

369.

Capital allowances in relation to construction or refurbishment of certain commercial premises.

370.

Double rent allowance in respect of rent paid for certain business premises.

371.

Residential accommodation: allowance to owner-occupiers in respect of certain expenditure on construction or refurbishment.

372.

Provisions supplementary to section 371.

PART 11

Capital Allowances and Expenses for Certain Road Vehicles

373.

Interpretation (Part 11).

374.

Capital allowances for cars costing over certain amount.

375.

Limit on renewals allowance for cars.

376.

Restriction of deduction in respect of running expenses of cars.

377.

Limit on deductions, etc. for hiring cars.

378.

Cars: provisions as to hire-purchase, etc.

379.

Cars: provisions where hirer becomes owner.

380.

Provisions supplementary to sections 374 to 379.

PART 12

Principal Provisions Relating to Loss Relief, Treatment of Certain Losses and Capital Allowances, and Group Relief

CHAPTER 1

Income tax: loss relief

381.

Right to repayment of tax by reference to losses.

382.

Right to carry forward losses to future years.

383.

Relief under Case IV for losses.

384.

Relief under Case V for losses.

385.

Terminal loss.

386.

Determination of terminal loss.

387.

Calculation of amount of profits or gains for purposes of terminal loss.

388.

Meaning of “permanently discontinued” for purposes of terminal loss.

389.

Determination of claim for terminal loss.

390.

Amount of assessment made under section 238 to be allowed as a loss for certain purposes.

CHAPTER 2

Income tax: loss relief— treatment of capital allowances

391.

Interpretation (Chapter 2).

392.

Option to treat capital allowances as creating or augmenting a loss.

393.

Extent to which capital allowances to be taken into account for purposes of section 392.

394.

Effect of giving relief under section 381 by reference to capital allowances.

395.

Relief affected by subsequent changes of law, etc.

CHAPTER 3

Corporation tax: loss relief

396.

Relief for trading losses other than terminal losses.

397.

Relief for terminal loss in a trade.

398.

Computation of losses attributable to exemption of income from certain securities.

399.

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

400.

Company reconstructions without change of ownership.

401.

Change in ownership of company: disallowance of trading losses.

CHAPTER 4

Income tax and corporation tax: treatment of certain losses and certain capital allowances

402.

Foreign currency: tax treatment of capital allowances and trading losses of a company.

403.

Restriction on use of capital allowances for certain leased assets.

404.

Restriction on use of capital allowances for certain leased machinery or plant.

405.

Restriction on use of capital allowances on holiday cottages.

406.

Corporation tax: restriction on use of capital allowances on fixtures and fittings for furnished residential accommodation.

407.

Restriction on use of losses and capital allowances for qualifying shipping trade.

408.

Restriction on tax incentives on property investment.

409.

Capital allowances: room ownership schemes.

CHAPTER 5

Group relief

410.

Group payments.

411.

Surrender of relief between members of groups and consortia.

412.

Qualification for entitlement to group relief.

413.

Profits or assets available for distribution.

414.

Meaning of “the profit distribution”.

415.

Meaning of “the notional winding up”.

416.

Limited right to profits or assets.

417.

Diminished share of profits or assets.

418.

Beneficial percentage.

419.

The relevant accounting period, etc.

420.

Losses, etc. which may be surrendered by means of group relief.

421.

Relation of group relief to other relief.

422.

Corresponding accounting periods.

423.

Company joining or leaving group or consortium.

424.

Effect of arrangements for transfer of company to another group, etc.

425.

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

426.

Partnerships involving companies: effect of arrangements for transferring relief.

427.

Information as to arrangements for transferring relief, etc.

428.

Exclusion of double allowances, etc.

429.

Claims and adjustments.

PART 13

Close Companies

CHAPTER 1

Interpretation and general

430.

Meaning of “close company”.

431.

Certain companies with quoted shares not to be close companies.

432.

Meaning of “associated company” and “control”.

433.

Meaning of “participator”, 5associate”, “director” and “loan creditor”.

434.

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

435.

Information.

CHAPTER 2

Additional matters to be treated as distributions, charges to tax in respect of certain loans and surcharges on certain undistributed income

436.

Certain expenses for participators and associates.

437.

Interest paid to directors and directors' associates.

438.

Loans to participators, etc.

439.

Effect of release, etc. of debt in respect of loan under section 438.

440.

Surcharge on undistributed investment and estate income.

441.

Surcharge on undistributed income of service companies.

PART 14

Taxation of Companies Engaged in Manufacturing Trades, Certain Trading Operations Carried On in Shannon Airport and Certain Trading Operations Carried on in the Custom House Docks Area

CHAPTER 1

Interpretation and general

442.

Interpretation (Part 14).

443.

Meaning of “goods”.

444.

Exclusion of mining and construction operations.

445.

Certain trading operations carried on in Shannon Airport.

446.

Certain trading operations carried on in Custom House Docks Area.

447.

Appeals.

CHAPTER 2

Principal provisions

448.

Relief from corporation tax.

449.

Credit for foreign tax not otherwise credited.

450.

Double taxation relief.

451.

Treatment of income and gains of certain trading operations carried on in Custom House Docks Area from investments held outside the State.

452.

Application of section 130 to certain interest.

453.

Transactions between associated persons.

454.

Restriction of certain charges on income.

455.

Restriction of certain losses.

456.

Restriction of group relief.

457.

Application of section 448 where profits are charged to corporation tax at the reduced rate.

PART 15

Personal Allowances and Reliefs and Certain Other Income Tax and Corporation Tax Reliefs

CHAPTER 1

Personal allowances and reliefs

458.

Deductions allowed in ascertaining taxable income and provisions relating to reductions in tax.

459.

General provisions relating to allowances, deductions and reliefs.

460.

Rate of tax at which repayments are to be made.

461.

Married and single personal allowances.

462.

Additional amount for widowed parents and other single parents.

463.

Special allowance for widowed parent following death of spouse.

464.

Age allowance.

465.

Incapacitated children.

466.

Dependent relative.

467.

Employed person taking care of incapacitated individual.

468.

Relief for blind persons.

469.

Relief for health expenses.

470.

Relief for insurance against expenses of illness.

471.

Relief for contributions to permanent health benefit schemes.

472.

Employee allowance.

473.

Allowance for rent paid by certain tenants.

474.

Relief for fees paid to private colleges for full-time third level education.

475.

Relief for fees paid for part-time third level education.

476.

Refief for fees paid for training courses.

477.

Relief for service charges.

478.

Relief for payments made by certain persons in respect of alarm systems.

479.

Relief for new shares purchased on issue by employees.

480.

Relief for certain sums chargeable under Schedule E.

CHAPTER 2

Income tax and corporation tax: reliefs applicable to both

481.

Relief for investment in films.

482.

Relief for expenditure on significant buildings and gardens.

483.

Relief for certain gifts.

484.

Relief for gifts for education in the arts.

485.

Relief for gifts to third-level institutions.

CHAPTER 3

Corporation tax reliefs

486.

Corporation tax: relief for gifts to First Step.

487.

Corporation tax: credit for bank levy.

PART 16

Income Tax Relief for Investment in Corporate Trades— Business Expansion Scheme and Seed Capital Scheme

488.

Interpretation (Part 16).

489.

The relief.

490.

Limits on the relief.

491.

Restriction on relief where amounts raised exceed permitted maximum.

492.

Certification in respect of an issue of eligible shares where aggregate of amounts raised by a company exceeds £250,000.

493.

Individuals qualifying for relief.

494.

Specified individuals.

495.

Qualifying companies.

496.

Qualifying trades.

497.

Relevant trading operations.

498.

Disposals of shares.

499.

Value received from company.

500.

Replacement capital.

501.

Value received by persons other than claimants.

502.

Prevention of misuse.

503.

Claims.

504.

Assessments for withdrawing relief.

505.

Information.

506.

Capital gains tax.

507.

Application to subsidiaries.

508.

Nominees and designated funds.

PART 17

Profit Sharing Schemes and Employee Share Ownership Trusts

CHAPTER 1

Profit sharing schemes

509.

Interpretation (Chapter 1).

510.

Approved profit sharing schemes: appropriated shares.

511.

The period of retention, release date and appropriate percentage.

512.

Disposals of scheme shares.

513.

Capital receipts in respect of scheme shares.

514.

Company reconstructions, amalgamations, etc.

515.

Excess or unauthorised shares.

516.

Assessment of trustees in respect of sums received.

517.

Payments to trustees of approved profit sharing scheme.

518.

Costs of establishing profit sharing schemes.

CHAPTER 2

Employee share ownership trusts

519.

Employee share ownership trusts.

PART 18

Payments In Respect of Professional Services by Certain Persons and Payments to Subcontractors in Certain Industries

CHAPTER 1

Payments in respect of professional services by certain persons

520.

Interpretation (Chapter 1).

521.

Accountable persons.

522.

Obligation on authorised insurers.

523.

Deduction of tax from relevant payments.

524.

Identification of, and issue of documents to, specified persons.

525.

Returns and collection of appropriate tax.

526.

Credit for appropriate tax borne.

527.

Interim refunds of appropriate tax.

528.

Apportionment of credits or interim refunds of appropriate tax.

529.

Limitation on credits or interim refunds of appropriate tax.

CHAPTER 2

Payments to subcontractors in certain industries

530.

Interpretation (Chapter 2).

531.

Payments to subcontractors in certain industries.

TAXATION OF CHARGEABLE GAINS

PART 19

Principal Provisions Relating to Taxation of Chargeable Gains

CHAPTER 1

Assets and acquisitions and disposals of assets

532.

Assets.

533.

Location of assets.

534.

Disposals of assets.

535.

Disposals where capital sums derived from assets.

536.

Capital sums: receipt of compensation and insurance moneys not treated as a disposal in certain cases.

537.

Mortgages and charges not to be treated as disposals.

538.

Disposals where assets lost or destroyed or become of negligible value.

539.

Disposals in cases of hire purchase and similar transactions.

540.

Options and forfeited deposits.

541.

Debts.

542.

Time of disposal and acquisition.

543.

Transfers of value derived from assets.

CHAPTER 2

Computation of chargeable gains and allowable losses

544.

Interpretation and general (Chapter 2).

545.

Chargeable gains.

546.

Allowable losses.

547.

Disposals and acquisitions treated as made at market value.

548.

Valuation of assets.

549.

Transactions between connected persons.

550.

Assets disposed of in series of transactions.

551.

Exclusion from consideration for disposals of sums chargeable to income tax.

552.

Acquisition, enhancement and disposal costs.

553.

Interest charged to capital.

554.

Exclusion of expenditure by reference to income tax.

555.

Restriction of losses by reference to capital allowances and renewals allowances.

556.

Adjustment of allowable expenditure by reference to consumer price index.

557.

Part disposals.

558.

Part disposals before 6th day of April, 1978.

559.

Assets derived from other assets.

560.

Wasting assets.

561.

Wasting assets qualifying for capital allowances.

562.

Contingent liabilities.

563.

Consideration due after time of disposal.

564.

Woodlands.

565.

Expenditure reimbursed out of public money.

566.

Leases.

CHAPTER 3

Assets held in a fiduciary or representative capacity, inheritances and settlements

567.

Nominees, bare trustees and agents.

568.

Liability of trustees, etc.

569.

Assets of insolvent person.

570.

Company in liquidation.

571.

Chargeable gains accruing on disposals by liquidators and certain other persons.

572.

Funds in court.

573.

Death.

574.

Trustees of settlement.

575.

Gifts in settlement.

576.

Person becoming absolutely entitled to settled property.

577.

Termination of life interest on death of person entitled.

578.

Death of annuitant.

579.

Non-resident trusts.

CHAPTER 4

Shares and securities

580.

Shares, securities, etc: identification.

581.

Disposals of shares or securities within 4 weeks of acquisition.

582.

Calls on shares.

583.

Capital distributions by companies.

584.

Reorganisation or reduction of share capital.

585.

Conversion of securities.

586.

Company amalgamations by exchange of shares.

587.

Company reconstructions and amalgamations.

588.

Demutualisation of assurance companies.

589.

Shares in close company transferring assets at undervalue.

590.

Attribution to shareholders of chargeable gains accruing to non-resident company.

591.

Relief for individuals on certain reinvestment.

592.

Reduced rate of capital gains tax on certain disposals of shares by individuals.

CHAPTER 5

Life assurance and deferred annuities

593.

Life assurance and deferred annuities.

594.

Foreign life assurance and deferred annuities: taxation and returns.

595.

Life assurance policy or deferred annuity contract entered into or acquired by company.

CHAPTER 6

Transfer of business assets

596.

Appropriations to and from stock in trade.

597.

Replacement of business and other assets.

598.

Disposals of business or farm on “retirement”.

599.

Disposals within family of business or farm.

600.

Transfer of business to company.

CHAPTER 7

Other reliefs and exemptions

601.

Annual exempt amount.

602.

Chattel exemption.

603.

Wasting chattels.

604.

Disposals of principal private residence.

605.

Disposals to authority possessing compulsory purchase powers.

606.

Disposals of work of art, etc., loaned for public display.

607.

Government and certain other securities.

608.

Superannuation funds.

609.

Charities.

610.

Other bodies.

611.

Disposals to State, public bodies and charities.

612.

Scheme for retirement of farmers.

613.

Miscellaneous exemptions for certain kinds of property.

PART 20

Companies' Chargeable Gains

CHAPTER 1

General

614.

Capital distribution derived from chargeable gain of company: recovery of tax from shareholder.

615.

Company reconstruction or amalgamation: transfer of assets.

616.

Groups of companies: interpretation.

617.

Transfers of assets, other than trading stock, within group.

618.

Transfers of trading stock within group.

619.

Disposals or acquisitions outside group.

620.

Replacement of business assets by members of group.

621.

Depreciatory transactions in group.

622.

Dividend stripping.

623.

Company ceasing to be member of group.

624.

Exemption from charge under section 623 in case of certain mergers.

625.

Shares in subsidiary member of group.

626.

Tax on company recoverable from other members of group.

CHAPTER 2

Provisions where companies cease to be resident in the State

627.

Deemed disposal of assets.

628.

Postponement of charge on deemed disposal under section 627.

629.

Tax on non-resident company recoverable from another member of group or from controlling director.

PART 21

Mergers, Divisions, Transfers of Assets and Exchanges of Shares Concerning Companies of Different Member States

630.

Interpretation (Part 21).

631.

Transfer of assets generally.

632.

Transfer of assets by company to its parent company.

633.

Company reconstruction or amalgamation: transfer of development land.

634.

Credit for tax.

635.

Avoidance of tax.

636.

Returns.

637.

Other transactions.

638.

Apportionment of amounts.

TRANSACTIONS IN LAND

PART 22

Provisions Relating to Dealing In or Developing Land and Disposals of Development Land

CHAPTER 1

Income tax and corporation tax: profits or gains from dealing in or developing land

639.

Interpretation (Chapter 1).

640.

Extension of charge under Case I of Schedule D to certain profits from dealing in or developing land.

641.

Computation under Case I of Schedule D of profits or gains from dealing in or developing land.

642.

Transfers of interests in land between certain associated persons.

643.

Tax to be charged under Case IV on gains from certain disposals of land.

644.

Provisions supplementary to section 643.

645.

Power to obtain information.

646.

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

647.

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

CHAPTER 2

Capital gains tax: disposals of development land

648.

Interpretation (Chapter 2).

649.

Companies chargeable to capital gains tax in respect of chargeable gains accruing on relevant disposals.

650.

Exclusion of certain disposals.

651.

Restriction of indexation relief in relation to relevant disposals.

652.

Non-application of reliefs on replacement of assets in case of relevant disposals.

653.

Restriction of relief for losses, etc. in relation to relevant disposals.

OTHER SPECIAL PROVISIONS

PART 23

Farming and Market Gardening

CHAPTER 1

Interpretation and general

654.

Interpretation (Part 23).

655.

Farming and market gardening profits to be charged to tax under Schedule D.

656.

Farming: trading stock of discontinued trade.

657.

Averaging of farm profits.

658.

Farming: allowances for capital expenditure on construction of buildings and other works.

659.

Farming: allowances for capital expenditure on the construction of farm buildings, etc. for control of pollution.

660.

Farming: wear and tear allowances deemed to have been made in certain cases.

661.

Farming: restriction of relief in respect of certain losses.

662.

Income tax: restriction of relief for losses in farming or market gardening.

663.

Corporation tax: restriction of relief for losses in farming or market gardening.

664.

Relief for certain income from leasing of farm land.

CHAPTER 2

Farming: relief for increase in stock values

665.

Interpretation (Chapter 2).

666.

Deduction for increase in stock values.

667.

Special provisions for qualifying farmers.

668.

Compulsory disposals of livestock.

669.

Supplementary provisions (Chapter 2).

PART 24

Taxation of Profits of Certain Mines and Petroleum Taxation

CHAPTER 1

Taxation of profits of certain mines

670.

Mine development allowance.

671.

Marginal coal mine allowance.

672.

Interpretation (sections 672 to 683).

673.

Allowance in respect of development expenditure and exploration expenditure.

674.

Expenditure on abortive exploration.

675.

Exploration expenditure incurred by certain bodies corporate.

676.

Expenditure incurred by person not engaged in trade of mining.

677.

Investment allowance in respect of exploration expenditure.

678.

Allowance for machinery and plant.

679.

Exploration expenditure.

680.

Annual allowance for mineral depletion.

681.

Allowance for mine rehabilitation expenditure.

682.

Marginal mine allowance.

683.

Charge to tax on sums received from sale of scheduled mineral assets.

CHAPTER 2

Petroleum taxation

684.

Interpretation (Chapter 2).

685.

Separation of trading activities.

686.

Reduction of corporation tax.

687.

Treatment of losses.

688.

Treatment of group relief.

689.

Restriction of relief for losses on certain disposals.

690.

Interest and charges on income.

691.

Restriction of set-off of advance corporation tax.

692.

Development expenditure: allowances and charges.

693.

Exploration expenditure: allowances and charges.

694.

Exploration expenditure incurred by certain companies.

695.

Abandonment expenditure: allowances and loss relief.

696.

Valuation of petroleum in certain circumstances.

697.

Treatment of certain disposals.

PART 25

Industrial and Provident Societies, Building Societies, and Trustee Savings Banks

CHAPTER 1

Industrial and provident societies

698.

Interpretation (Chapter 1).

699.

Deduction as expenses of certain sums, etc.

700.

Special computational provisions.

701.

Transfer of shares held by certain societies to members of society.

CHAPTER 2

Building societies

702.

Union or amalgamation of, transfer of engagement between, societies.

703.

Change of status of society.

CHAPTER 3

Trustee savings banks

704.

Amalgamation of trustee savings banks.

705.

Reorganisation of trustee savings banks into companies.

PART 26

Life Assurance Companies

CHAPTER 1

General provisions

706.

Interpretation and general (Part 26).

707.

Management expenses.

708.

Acquisition expenses.

709.

Companies carrying on life business.

710.

Profits of life business.

711.

Chargeable gains of life business.

712.

Distributions received from Irish resident companies.

713.

Investment income reserved for policy holders.

714.

Life business: computation of profits.

715.

Annuity business: separate charge on profits.

716.

General annuity business.

717.

Pension business.

718.

Foreign life assurance funds.

719.

Deemed disposal and reacquisition of certain assets.

720.

Gains or losses arising by virtue of section 719.

721.

Life policies carrying rights not in money.

722.

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

CHAPTER 2

Special investment policies

723.

Special investment policies.

724.

Transfer of assets into or out of special investment fund.

725.

Special investment policies: breaches of conditions.

CHAPTER 3

Provisions applying to overseas life assurance companies

726.

Investment income.

727.

General annuity and pension business.

728.

Expenses of management.

729.

Income tax, foreign tax and tax credit.

730.

Tax credit in respect of distributions.

PART 27

Unit Trusts and Offshore Funds

CHAPTER 1

Unit trusts

731.

Chargeable gains accruing to unit trusts.

732.

Special arrangements for qualifying unit trusts.

733.

Reorganisation of units in unit trust scheme.

734.

Taxation of collective investment undertakings.

735.

Certain unit trusts not to be collective investment undertakings.

736.

Option for non-application of section 735.

737.

Special investment schemes.

738.

Undertakings for collective investment.

739.

Taxation of unit holders in undertakings for collective investment.

CHAPTER 2

Offshore funds

740.

Interpretation (Chapter 2 and Schedules 19 and 20).

741.

Disposals of material interests in non-qualifying offshore funds.

742.

Offshore funds operating equalisation arrangements.

743.

Material interest in offshore funds.

744.

Non-qualifying offshore funds.

745.

Charge to income tax or corporation tax of offshore income gain.

746.

Offshore income gains accruing to persons resident or domiciled abroad.

747.

Deduction of offshore income gain in determining capital gain.

PART 28

Purchase and Sale of Securities

CHAPTER 1

Purchase and sale of securities

748.

Interpretation and application (Chapter 1).

749.

Dealers in securities.

750.

Persons entitled to exemption.

751.

Traders other than dealers in securities.

CHAPTER 2

Purchases of shares by financial concerns and persons exempted from tax, and restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits

752.

Purchases of shares by financial concerns and persons exempted from tax.

753.

Restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits.

PART 29

Patents, Scientific and Certain Other Research, Know-How and Certain Training

CHAPTER 1

Patents

754.

Interpretation (Chapter 1).

755.

Annual allowances for capital expenditure on purchase of patent rights.

756.

Effect of lapse of patent rights.

757.

Charges on capital sums received for sale of patent rights.

758.

Relief for expenses.

759.

Spreading of revenue payments over several years.

760.

Capital sums: effect of death, winding up and partnership changes.

761.

Manner of making allowances and charges.

762.

Application of Chapter 4 of Part 9.

CHAPTER 2

Scientific and certain other research

763.

Interpretation (sections 764 and 765).

764.

Deduction for revenue expenditure on scientific research.

765.

Allowances for capital expenditure on scientific research.

766.

Deduction for certain expenditure on research and development.

767.

Payment to universities and other approved bodies for research in, or teaching of, approved subjects.

CHAPTER 3

Know-how and certain training

768.

Allowance for know-how.

769.

Relief for training of local staff before commencement of trading.

PART 30

Occupational Pension Schemes, Retirement Annuities, Purchased Life Annuities and Certain Pensions

CHAPTER 1

Occupational pension schemes

770.

Interpretation and supplemental (Chapter 1).

771.

Meaning of “retirement benefits scheme”.

772.

Conditions for approval of schemes and discretionary approval.

773.

General Medical Services: scheme of superannuation.

774.

Certain approved schemes: exemptions and reliefs.

775.

Certain approved schemes: provisions supplementary to section 774(6).

776.

Certain statutory schemes: exemptions and reliefs.

777.

Charge to income tax in respect of certain relevant benefits provided for employees.

778.

Exceptions to charge to tax under section 777.

779.

Charge to income tax of pensions under Schedule E.

780.

Charge to income tax on repayment of employees' contributions.

781.

Charge to income tax: commutation of entire pension.

782.

Charge to tax: repayments to employer.

CHAPTER 2

Retirement annuities

783.

Interpretation and general (Chapter 2).

784.

Retirement annuities: relief for premiums.

785.

Approval of contracts for dependants or for life assurance.

786.

Approval of certain other contracts.

787.

Nature and amount of relief for qualifying premiums.

CHAPTER 3

Purchased life annuities

788.

Capital element in certain purchased annuities.

789.

Supplementary provisions (Chapter 3).

CHAPTER 4

Miscellaneous

790.

Liability of certain pensions, etc. to tax.

PART 31

Taxation of Settlors, Etc in Respect of Settled or Transferred Income

CHAPTER 1

Revocable dispositions for short periods and certain dispositions in favour of children

791.

Income under revocable dispositions.

792.

Income under dispositions for short periods.

793.

Recovery of tax from trustee and payment to trustee of excess tax recoupment.

CHAPTER 2

Settlements on children generally

794.

Interpretation and application (Chapter 2).

795.

Income settled on children.

796.

Irrevocable instruments.

797.

Recovery of tax from trustee and payment to trustee of excess tax recoupment.

798.

Transfer of interest in trade to children.

PART 32

Estates of Deceased Persons in Course of Administration and Surcharge on Certain Income of Trustees

CHAPTER 1

Estates of deceased persons in course of administration

799.

Interpretation (Chapter 1).

800.

Limited interest in residue.

801.

Absolute interest in residue.

802.

Supplementary provisions as to absolute interest in residue.

803.

Special provisions as to certain interests.

804.

Adjustments and information.

CHAPTER 2

Surcharge on certain income of trustees

805.

Surcharge on certain income of trustees.

PART 33

Anti-Avoidance

CHAPTER 1

Transfer of assets abroad

806.

Charge to income tax on transfer of assets abroad.

807.

Deductions and reliefs in relation to income chargeable to income tax under section 806.

808.

Power to obtain information.

809.

Saver.

810.

Application of Income Tax Acts.

CHAPTER 2

Miscellaneous

811.

Transactions to avoid liability to tax.

812.

Taxation of income deemed to arise from transfers of right to receive interest from securities.

813.

Taxation of transactions associated with loans or credit.

814.

Taxation of income deemed to arise from transactions in certificates of deposit and assignable deposits.

815.

Taxation of income deemed to arise on certain sales of securities.

816.

Taxation of shares issued in place of cash dividends.

817.

Schemes to avoid liability to tax under Schedule F.

PART 34

Provisions Relating to the Residence of Individuals

818.

Interpretation (Part 34).

819.

Residence.

820.

Ordinary residence.

821.

Application of sections 17 and 18(1) and Chapter 1 of Part 3.

822.

Split year residence.

823.

Deduction for income earned outside the State.

824.

Appeals.

825.

Residence treatment of donors of gifts to the State.

PART 35

Double Taxation Relief

CHAPTER 1

Principal reliefs

826.

Agreements for relief from double taxation.

827.

Application to corporation tax of arrangements made in relation to corporation profits tax under old law.

828.

Capital gains tax: double taxation relief.

829.

Treatment for double taxation relief purposes of foreign tax incentive reliefs.

CHAPTER 2

Miscellaneous

830.

Relief to certain companies liable to foreign tax.

831.

Implementation of Council Directive No.90/435/EEC concerning the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States.

832.

Provisions in relation to Convention for reciprocal avoidance of double taxation in the State and the United Kingdom of income and capital gains.

833.

Convention with United States of America.

834.

Relief in respect of ships documented under laws of United States of America.

835.

Saver for arrangements made under section 362 of Income Tax Act, 1967.

PART 36

Miscellaneous Special Provisions

836.

Allowances for expenses of members of Oireachtas.

837.

Members of the clergy and ministers of religion.

838.

Special portfolio investment accounts.

839.

Limits to special investments.

840.

Business entertainment.

841.

Voluntary Health Insurance Board: restriction of certain losses and deemed disposal of certain assets.

842.

Replacement of harbour authorities by port companies.

843.

Capital allowances for buildings used for third level educational purposes.

844.

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

845.

Corporation tax: treatment of tax-free income of non-resident banks, insurance businesses, etc.

846.

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

847.

Tax relief for certain branch profits.

848.

Designated charities: repayment of tax in respect of donations.

MANAGEMENT PROVISIONS

PART 37

Administration

849.

Taxes under care and management of Revenue Commissioners.

850.

Appeal Commissioners.

851.

Collector-General.

852.

Inspectors of taxes.

853.

Governor and directors of Bank of Ireland.

854.

Appointment of persons for purposes of assessment of certain public offices.

855.

Declaration to be made by Commissioners.

856.

Disqualification of Commissioners in cases of personal interest.

857.

Declarations on taking office.

858.

Evidence of authorisation.

859.

Anonymity of authorised officers in relation to certain matters.

860.

Administration of oaths.

861.

Documents to be in accordance with form prescribed by Revenue Commissioners.

862.

Exercise of powers, etc. of Minister for Finance under Tax Acts.

863.

Loss, destruction or damage of assessments and other documents.

864.

Making of claims, etc.

865.

Limit of time for repayment claims.

866.

Rules as to delivery of statements.

867.

Amendment of statutory forms.

868.

Execution of warrants.

869.

Delivery, service and evidence of notices and forms.

870.

Effect of want of form, error, etc. on assessments, charges, warrants and other proceedings.

871.

Power to combine certain returns and assessments.

872.

Use of information relating to other taxes and duties.

873.

Proof that person is a Commissioner or officer.

874.

Limitation of penalties on officers employed in execution of Tax Acts and Capital Gains Tax Acts.

875.

Exemption of appraisements and valuations from stamp duty.

PART 38

Returns of Income and Gains, Other Obligations and Returns, and Revenue Powers

CHAPTER 1

Income tax: returns of income

876.

Notice of liability to income tax.

877.

Returns by persons chargeable.

878.

Persons acting for incapacitated persons and non-residents.

879.

Returns of income.

880.

Partnership returns.

881.

Returns by married persons.

CHAPTER 2

Corporation tax: returns of profits

882.

Particulars to be supplied by new companies.

883.

Notice of liability to corporation tax.

884.

Returns of profits.

CHAPTER 3

Other obligations and returns

885.

Obligation to show tax reference number on receipts.

886.

Obligation to keep certain records.

887.

Use of electronic data processing.

888.

Returns, etc. by lessors, lessees and agents.

889.

Returns of fees, commissions, etc. paid by certain persons.

890.

Returns by persons in receipt of income belonging to others.

891.

Returns of interest paid or credited without deduction of tax.

892.

Returns by nominee holders of securities.

893.

Returns by certain intermediaries in relation to UCITS.

894.

Returns of certain information by third parties.

895.

Returns in relation to foreign accounts.

896.

Returns in relation to material interest in offshore funds.

897.

Returns of employees' emoluments, etc.

898.

Returns of copies of rates and production of certain valuations.

CHAPTER 4

Revenue powers

899.

Inspector's right to make enquiries.

900.

Power to require production of accounts and books.

901.

Power to require delivery of books and papers relating to tax.

902.

Power to obtain from certain persons particulars of transactions with and documents concerning tax liability of taxpayer.

903.

Power of inspection: PAYE.

904.

Power of inspection: tax deduction from payments to certain subcontractors.

905.

Inspection of documents and records.

906.

Authorised officers and Garda Síochána.

907.

Application to Appeal Commissioners seeking determination that authorised officer justified in requiring information to be furnished by financial institutions.

908.

Application to High Court seeking order requiring information to be furnished by financial institutions.

909.

Power to require return of property.

910.

Power to obtain information from Minister of the Government.

911.

Valuation of assets: power to inspect.

912.

Computer documents and records.

CHAPTER 5

Capital gains tax: returns, information, etc.

913.

Application of income tax provisions relating to returns, etc.

914.

Returns by issuing houses, stockbrokers, auctioneers, etc.

915.

Returns by nominee shareholders.

916.

Returns by party to a settlement.

917.

Returns relating to non-resident companies and trusts.

PART 39

Assessments

CHAPTER 1

Income tax and corporation tax

918.

Making of assessments under Schedules C, D, E and F.

919.

Assessments to corporation tax.

920.

Granting of allowances and reliefs.

921.

Aggregation of assessments.

922.

Assessment in absence of return.

923.

Function of certain assessors.

924.

Additional assessments.

925.

Special rules relating to assessments under Schedule E.

926.

Estimation of certain amounts.

927.

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

928.

Transmission to Collector-General of particulars of sums to be collected.

CHAPTER 2

Provision against double assessment and relief for error or mistake

929.

Double assessment.

930.

Error or mistake.

CHAPTER 3

Capital gains tax

931.

Making of assessments and application of income tax assessment provisions.

PART 40

Appeals

CHAPTER 1

Appeals against income tax and corporation tax assessments

932.

Prohibition on alteration of assessment except on appeal.

933.

Appeals against assessment.

934.

Procedure on appeals.

935.

Power to issue precepts.

936.

Objection by inspector or other officer to schedules.

937.

Confirmation and amendment of assessments.

938.

Questions as to assessments or schedules.

939.

Summoning and examination of witnesses.

940.

Determination of liability in cases of default.

941.

Statement of case for High Court.

942.

Appeals to Circuit Court.

943.

Extension of section 941.

944.

Communication of decision of Appeal Commissioners.

CHAPTER 2

Appeals against capital gains tax assessments

945.

Appeals against assessments.

946.

Regulations with respect to appeals.

CHAPTER 3

Miscellaneous

947.

Appeals against determination under sections 98 to 100.

948.

Appeals against amount of income tax deducted under Schedule E.

949.

Appeals against determinations of certain claims, etc.

PART 41

Self Assessment

950.

Interpretation (Part 41).

951.

Obligation to make a return.

952.

Obligation to pay preliminary tax.

953.

Notices of preliminary tax.

954.

Making of assessments.

955.

Amendment of and time limit for assessments.

956.

Inspector's right to make enquiries and amend assessments.

957.

Appeals.

958.

Date for payment of tax.

959.

Miscellaneous (Part 41).

PART 42

Collection and Recovery

CHAPTER 1

Income tax

960.

Date for payment of income tax other than under self assessment.

961.

Issue of demand notes and receipts.

962.

Recovery by sheriff or county registrar.

963.

Power of Collector-General and authorised officer to sue in Circuit Court or District Court.

964.

Continuance of pending proceedings.

965.

Evidence in proceedings in Circuit Court or District Court for recovery of income tax.

966.

High Court proceedings.

967.

Evidence of electronic transmission of particulars of income tax to be collected in proceedings for recovery of tax.

968.

Judgments for recovery of income tax.

969.

Duration of imprisonment for non-payment of income tax.

970.

Recovery of income tax charged on profits not distrainable.

971.

Priority of income tax debts over other debts.

972.

Duty of employer as to income tax payable by employees.

CHAPTER 2

Corporation tax

973.

Collection of corporation tax.

974.

Priority for corporation tax.

975.

Application of sections 964(2), 980(8) and 981 for purposes of corporation tax.

CHAPTER 3

Capital gains tax

976.

Collection of capital gains tax.

977.

Recovery of capital gains tax from shareholder.

978.

Gifts: recovery of capital gains tax from donee.

979.

Time for payment of capital gains tax assessed under sections 977(3) or 978(2) and (3).

980.

Deduction from consideration on disposal of certain assets.

981.

Payment by instalments where consideration due after time of disposal.

982.

Preferential payment.

CHAPTER 4

Collection and recovery of income tax on certain emoluments (PAYE system)

983.

Interpretation (Chapter 4).

984.

Application.

985.

Method of collection.

986.

Regulations.

987.

Penalties for breach of regulations.

988.

Registration of certain persons as employers and requirement to send certain notifications.

989.

Estimation of tax due for income tax months.

990.

Estimation of tax due for year.

991.

Interest.

992.

Appeals against estimates under section 989 or 990.

993.

Recovery of tax.

994.

Priority in bankruptcy, etc. of certain amounts.

995.

Priority in winding up of certain amounts.

996.

Treatment for tax purposes of certain unpaid remuneration.

997.

Supplementary provisions (Chapter 4).

CHAPTER 5

Miscellaneous provisions

998.

Recovery of moneys due.

999.

Taking by Collector-General of proceedings in bankruptcy.

1000.

Priority in bankruptcy, winding up, etc. for sums recovered or deducted under sections 531, 989 or 990.

1001.

Liability to tax, etc. of holder of fixed charge on book debts of company.

1002.

Deduction from payments due to defaulters of amounts due in relation to tax.

1003.

Payment of tax by means of donation of heritage items.

1004.

Unremittable income.

1005.

Unremittable gains.

1006.

Poundage and certain other fees due to sheriffs or county registrars.

PART 43

Partnerships and European Economic Interest Groupings (EEIG)

1007.

Interpretation (Part 43).

1008.

Separate assessment of partners.

1009.

Partnerships involving companies.

1010.

Capital allowances and balancing charges in partnership cases.

1011.

Provision as to charges under section 757.

1012.

Modification of provisions as to appeals.

1013.

Limited partnerships.

1014.

Tax treatment of profits, losses and capital gains arising from activities of a European Economic Interest Grouping (EEIG).

PART 44

Married, Separated and Divorced Persons

CHAPTER 1

Income tax

1015.

Interpretation (Chapter 1).

1016.

Assessment as single persons.

1017.

Assessment of husband in respect of income of both spouses.

1018.

Election for assessment under section 1017.

1019.

Assessment of wife in respect of income of both spouses.

1020.

Special provisions relating to year of marriage.

1021.

Repayment of tax in case of certain husbands and wives.

1022.

Special provisions relating to tax on wife's income.

1023.

Application for separate assessments.

1024.

Method of apportioning reliefs and charging tax in cases of separate assessments.

1025.

Maintenance in case of separated spouses.

1026.

Separated and divorced persons: adaptation of provisions relating to married persons.

1027.

Payments pursuant to certain orders under Judicial Separation and Family Law Reform Act, 1989, Family Law Act, 1995, and Family Law (Divorce) Act, 1996, to be made without deduction of income tax.

CHAPTER 2

Capital gains tax

1028.

Married persons.

1029.

Application of section 1022 for purposes of capital gains tax.

1030.

Separated spouses: transfers of assets.

1031.

Divorced persons: transfers of assets.

PART 45

Charging and Assessing of Non-Residents

CHAPTER 1

Income tax and corporation tax

1032.

Restrictions on certain reliefs.

1033.

Entitlement to tax credit in respect of distributions.

1034.

Assessment.

1035.

Profits from agencies, etc.

1036.

Control over residents.

1037.

Charge on percentage of turnover.

1038.

Merchanting profit.

1039.

Restrictions on chargeability.

1040.

Application of sections 1034 to 1039 for purposes of corporation tax.

1041.

Rents payable to non-residents.

CHAPTER 2

Capital gains tax

1042.

Charging and assessment of persons not resident or ordinarily resident: modification of general rules.

1043.

Application of sections 1034 and 1035 for purposes of capital gains tax.

PART 46

Persons Chargeable in a Representative Capacity

CHAPTER 1

Income tax and corporation tax

1044.

Bodies of persons.

1045.

Trustees, guardians and committees.

1046.

Liability of trustees, etc.

1047.

Liability of parents, guardians, executors and administrators.

1048.

Assessment of executors and administrators.

1049.

Receivers appointed by court.

1050.

Protection for trustees, agents and receivers.

CHAPTER 2

Capital gains tax

1051.

Application of Chapter 1 for purposes of capital gains tax.

PART 47

Penalties, Revenue Offences, Interest on Overdue Tax and Other Sanctions

CHAPTER 1

Income tax and corporation tax penalties

1052.

Penalties for failure to make certain returns, etc.

1053.

Penalty for fraudulently or negligently making incorrect returns, etc.

1054.

Increased penalties in case of body of persons.

1055.

Penalty for assisting in making incorrect returns, etc.

1056.

Penalty for false statement made to obtain allowance.

1057.

Fine for obstruction of officers in execution of duties.

1058.

Refusal to allow deduction of tax.

1059.

Power to add penalties to assessments.

1060.

Proceedings against executor or administrator.

1061.

Recovery of penalties.

1062.

Proceedings where penalty recoverable cannot be definitely ascertained.

1063.

Time limit for recovery of fines and penalties.

1064.

Time for certain summary proceedings.

1065.

Mitigation and application of fines and penalties.

1066.

False evidence: punishment as for perjury.

1067.

Admissibility of statements and documents in criminal and tax proceedings.

1068.

Failure to act within required time.

1069.

Evidence of income.

1070.

Saving for criminal proceedings.

CHAPTER 2

Other corporation tax penalties

1071.

Penalties for failure to make certain returns.

1072.

Penalties for fraudulently or negligently making incorrect returns, etc.

1073.

Penalties for failure to furnish particulars required to be supplied by new companies.

1074.

Penalties for failure to give notice of liability to corporation tax.

1075.

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

1076.

Supplementary provisions (Chapter 2).

CHAPTER 3

Capital gains tax penalties

1077.

Penalties for failure to make returns, etc. and for fraudulently or negligently making incorrect returns, etc.

CHAPTER 4

Revenue offences

1078.

Revenue offences.

1079.

Duties of relevant person in relation to certain revenue offences.

CHAPTER 5

Interest on overdue tax

1080.

Interest on overdue income tax and corporation tax.

1081.

Effect on interest of reliefs given by discharge or repayment.

1082.

Interest on overdue income tax and corporation tax in cases of fraud or neglect.

1083.

Application of sections 1080 to 1082 for capital gains tax purposes.

CHAPTER 6

Other sanctions

1084.

Surcharge for late returns.

1085.

Corporation tax— late returns: restriction of certain claims for relief.

1086.

Publication of names of tax defaulters.

PART 48

Miscellaneous and Supplemental

1087.

Charge and deduction of income tax not charged or deducted before passing of annual Act.

1088.

Restriction on deductions in computing profits.

1089.

Status of interest on certain unpaid taxes and duties.

1090.

Income tax assessment to be conclusive of total income.

1091.

Annexation of statements to interest warrants, etc.

1092.

Disclosure of certain information to rating authorities, etc.

1093.

Disclosure of information to Ombudsman.

1094.

Tax clearance certificates in relation to certain licences.

1095.

Tax clearance certificates in relation to public sector contracts.

1096.

Assessment of Electricity Supply Board.

PART 49

Commencement, Repeals, Transitional Provisions, Etc

1097.

Commencement.

1098.

Repeals.

1099.

Saving for enactments not repealed.

1100.

Consequential amendments to other enactments.

1101.

Transitional provisions.

1102.

Continuity and construction of certain references to old and new law.

1103.

Continuance of officers, instruments and documents.

1104.

Short title and construction.

SCHEDULE 1

Supplementary Provisions Concerning the Extension of Charge to Tax to Profits and Income Derived from Activities Carried On and Employments Exercised on the Continental Shelf

SCHEDULE 2

Machinery for Assessment, Charge and Payment of Tax under Schedule C and, in Certain Cases, Schedule D

SCHEDULE 3

Reliefs in Respect of Income Tax Charged on Payments on Retirement, Etc

SCHEDULE 4

Exemption of Specified Non-Commercial State Sponsored Bodies from Certain Tax Provisions

SCHEDULE 5

Description of Custom House Docks Area

SCHEDULE 6

Description of Temple Bar Area

SCHEDULE 7

Description of Certain Enterprise Areas

SCHEDULE 8

Description of Qualifying Resort Areas

SCHEDULE 9

Change in Ownership of Company: Disallowance of Trading Losses

SCHEDULE 10

Relief for Investment in Corporate Trades: Subsidiaries

SCHEDULE 11

Profit Sharing Schemes

SCHEDULE 12

Employee Share Ownership Trusts

SCHEDULE 13

Accountable Persons for Purposes of Chapter 1 of Part 18

SCHEDULE 14

Capital Gains Tax: Leases

SCHEDULE 15

List of Bodies for Purposes of Section 610

SCHEDULE 16

Building Societies: Change of Status

SCHEDULE 17

Reorganisation Into Companies of Trustee Savings Banks

SCHEDULE 18

Accounting for and Payment of Tax Deducted From Relevant Payments and Undistributed Relevant Income

SCHEDULE 19

Offshore Funds: Distributing Funds

SCHEDULE 20

Offshore Funds: Computation of Offshore Income Gains

SCHEDULE 21

Purchase and Sale of Securities: Appropriate Amount in Respect of the Interest

SCHEDULE 22

Dividends Regarded as Paid Out of Profits Accumulated Before Given Date

SCHEDULE 23

Occupational Pension Schemes

SCHEDULE 24

Relief From Income Tax and Corporation Tax by Means of Credit in Respect of Foreign Tax

SCHEDULE 25

Convention Between The Government of Ireland and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect to Taxes on Income

SCHEDULE 26

Replacement of Harbour Authorities by Port Companies

SCHEDULE 27

Forms of Declarations to be Made by Certain Persons

SCHEDULE 28

Statements, Lists and Declarations

SCHEDULE 29

Provisions Referred to in Sections 1052, 1053 and 1054

SCHEDULE 30

Repeals

SCHEDULE 31

Consequential Amendments

SCHEDULE 32

Transitional Provisions


Acts Referred to

Adoption Act, 1991

1991, No. 14

Adoption Acts, 1952 to 1991

Age of Majority Act, 1985

1985, No. 2

Agricultural Act, 1931

1931, No. 8

Agricultural Acts, 1931 to 1980

Aliens Act, 1935

1935, No. 14

Army Pensions Act, 1932

1932, No. 24

Army Pensions Acts, 1923 to 1980

Assurance Companies Act, 1909

9 Edw. 7, c. 42

Auctioneers and House Agents Act, 1947

1947, No. 10

Bankers' Books Evidence Acts, 1879 and 1959

Bankruptcy Act, 1988

1988, No. 27

Betting Act, 1931

1931, No. 27

Building Societies Act, 1989

1989, No. 17

Building Societies Acts, 1874 to 1989

Capital Acquisitions Tax Act, 1976

1976, No. 8

Capital Gains Tax Act, 1975

1975, No. 20

Capital Gains Tax (Amendment) Act, 1978

1978, No. 33

Casual Trading Act, 1995

1995, No. 19

Central Bank Act, 1971

1971, No. 24

Central Fund Act, 1965

1965, No. 4

Central Fund (Permanent Provisions) Act, 1965

1965, No. 26

Charities Act, 1961

1961, No. 17

Civil Service Commissioners Act, 1956

1956, No. 45

Companies Act, 1963

1963, No. 33

Companies Act, 1990

1990, No. 33

Companies Acts, 1963 to 1990

Companies (Amendment) Act, 1983

1983, No. 13

Connaught Rangers (Pensions) Act, 1936

1936, No. 37

Connaught Rangers (Pensions) Acts, 1936 to 1964

Consumer Credit Act, 1995

1995, No. 24

Continental Shelf Act, 1968

1968, No. 14

Corporation Tax Act, 1976

1976, No. 7

Court Officers Act, 1926

1926, No. 27

Courts (Supplemental Provisions) Act, 1961

1961, No. 39

Courts Act, 1991

1991, No. 20

Courts of Justice Act, 1924

1924, No. 10

Courts of Justice Act, 1953

1953, No. 32

Criminal Assets Bureau Act, 1996

1996, No. 31

Criminal Procedure Act, 1967

1967, No. 12

Customs-Free Airport Act, 1947

1947, No. 5

Deeds of Arrangements Act, 1887

50 & 51 Vict., c. 57

Defence Act, 1954

1954, No. 18

Dentists Act, 1985

1985, No. 9

Diplomatic Relations and Immunities Act, 1967

1967, No. 8

Disclosure of Certain Information for Taxation and Other Purposes Act, 1996

1996, No. 25

Dublin Docklands Development Authority Act, 1997

1997, No. 7

Enforcement of Court Orders Act, 1926

1926, No. 18

Environmental Protection Agency Act, 1992

1992, No. 7

Export Promotion (Amendment) Act, 1987

1987, No. 13

Family Law Act, 1995

1995, No. 26

Family Law (Divorce) Act, 1996

1996, No. 33

Finance (1909-10) Act, 1910

10 Edw. 7 & 1 Geo. 5, c. 8

Finance (Excise Duties) (Vehicles) Act, 1952

1952, No. 24

Finance (Excise Duty on Tobacco Products) Act, 1977

1977, No. 32

Finance (Miscellaneous Provisions) Act, 1956

1956, No. 47

Finance (Miscellaneous Provisions) Act, 1958

1958, No. 28

Finance (Miscellaneous Provisions) Act, 1968

1968, No. 7

Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956

1956, No. 8

Finance (Taxation of Profits of Certain Mines) Act, 1974

1974, No. 17

Finance Act, 1894

57 & 58 Vict., c. 30

Finance Act, 1920

10 & 11 Geo. 5, c. 8

Finance Act, 1928

1928, No. 11

Finance Act, 1931

1931, No. 31

Finance Act, 1950

1950, No. 18

Finance Act, 1952

1952, No. 14

Finance Act, 1959

1959, No. 18

Finance Act, 1960

1960, No. 19

Finance Act, 1963

1963, No. 23

Finance Act, 1964

1964, No. 15

Finance Act, 1965

1965, No. 22

Finance Act, 1967

1967, No. 17

Finance Act, 1968

1968, No. 33

Finance (No. 2) Act, 1968

1968, No. 37

Finance Act, 1969

1969, No. 21

Finance Act, 1970

1970, No. 14

Finance (No.2) Act, 1970

1970, No. 25

Finance Act, 1971

1971, No. 23

Finance Act, 1972

1972, No. 19

Finance Act, 1973

1973, No. 19

Finance Act, 1974

1974, No. 27

Finance Act, 1975

1975, No. 6

Finance (No. 2) Act, 1975

1975, No. 19

Finance Act, 1976

1976, No. 16

Finance Act, 1977

1977, No. 18

Finance Act, 1978

1978, No. 21

Finance Act, 1979

1979, No. 11

Finance Act, 1980

1980, No. 14

Finance Act, 1981

1981, No. 16

Finance (No. 2) Act, 1981

1981, No. 28

Finance Act, 1982

1982, No. 14

Finance Act, 1983

1983, No. 15

Finance Act, 1984

1984, No. 9

Finance Act, 1985

1985, No. 10

Finance Act, 1986

1986, No. 13

Finance Act, 1987

1987, No. 10

Finance Act, 1988

1988, No. 12

Finance Act, 1989

1989, No. 10

Finance Act, 1990

1990, No. 10

Finance Act, 1991

1991, No. 13

Finance Act, 1992

1992, No. 9

Finance (No. 2) Act, 1992

1992, No. 28

Finance Act, 1993

1993, No. 13

Finance Act, 1994

1994, No. 13

Finance Act, 1995

1995, No. 8

Finance Act, 1996

1996, No. 9

Finance Act, 1997

1997, No. 22

Friendly Societies Act, 1896

59 & 60 Vict., c. 25

Friendly Societies Acts, 1896 to 1977

Gaming and Lotteries Act, 1956

1956, No. 2

Harbours Act, 1996

1996, No. 11

Health Act, 1970

1970, No. 1

Health Acts 1947 to 1996

Health Contributions Act, 1979

1979, No. 4

Higher Education Authority Act, 1971

1971, No. 22

Housing Act, 1966

1966, No. 21

Housing Finance Agency Act, 1981

1981, No. 37

Housing (Miscellaneous Provisions) Act, 1979

1979, No. 27

Income Tax Act, 1967

1967, No. 6

Income Tax (Amendment) Act, 1967

1967, No. 7

Income Tax (Amendment) Act, 1986

1986, No. 34

Industrial and Provident Societies Acts, 1893 to 1978

Industrial Development Act, 1969

1969, No. 32

Industrial Development Act, 1972

1972, No. 9

Industrial Development Act, 1986

1986, No. 9

Industrial Development Act, 1993

1993, No. 19

Industrial Development Act, 1995

1995, No. 28

Industrial Development (Amendment) Act, 1991

1991, No. 30

Industrial Development (No. 2) Act, 1981

1981, No. 14

Industrial Training (Apprenticeship Levy) Act, 1994

1994, No. 3

Insurance Act, 1936

1936, No. 45

Insurance Act, 1989

1989, No. 3

Insurance Act, 1990

1990, No. 26

Insurance Acts, 1909 to 1969

Interpretation Act, 1937

1937, No. 38

Irish Film Board Act, 1980

1980, No. 36

Irish Horseracing Industry Act, 1994

1994, No. 18

Irish Takeover Panel Act, 1997

1997, No. 5

Judicial Separation and Family Law Reform Act, 1989

1989, No. 6

Labour Services Act, 1987

1987, No. 15

Limited Partnership Act, 1907

7 Edw. 7, c. 24

Local Authorities (Higher Education) Grants Acts, 1968 to 1992

Local Government Act, 1941

1941, No. 23

Local Government Act, 1946

1946, No. 24

Local Government (Financial Provisions)(No. 2) Act, 1983

1983, No. 21

Local Government (Planning & Development) Act, 1963

1963, No. 28

Local Government (Planning & Development) Acts, 1963 to 1993

Local Government (Sanitary Services) Act, 1962

1962, No. 26

Local Government (Toll Roads) Act, 1979

1979, No. 34

Local Government Services (Corporate Bodies) Act, 1971

1971, No. 6

Maritime Jurisdiction Act, 1959

1959, No. 22

Maritime Jurisdiction (Amendment) Act, 1988

1988, No. 9

Medical Practitioners Act, 1978

1978, No. 4

Mercantile Marine Act, 1955

1955, No. 29

Merchant Shipping Acts, 1894 to 1993

Military Service Pensions Act, 1924

1924, No. 48

Military Service Pensions Act, 1934

1934, No. 43

Military Service Pensions Acts, 1924 to 1964

Minerals Developments Act, 1940

1940, No. 31

Ministerial and Parliamentary Offices Act, 1938

1938, No. 38

National Lottery Act, 1986

1986, No. 28

Official Secrets Act, 1963

1963, No. 1

Oireachtas (Allowances to Members) Act, 1938

1938, No. 34

Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1960

1960, No. 12

Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992

1992, No. 3

Ombudsman Act, 1980

1980, No. 26

Patents Act, 1992

1992, No. 1

Pensions (Increase) Act, 1964

1964, No. 10

Petroleum and Other Minerals Development Act, 1960

1960, No. 7

Petty Sessions (Ireland) Act, 1851

14 & 15 Vict., c. 93

Policies of Assurances Act, 1867

30 & 31 Vict., c. 144

Post Office Savings Bank Act, 1861

24 & 25 Vict., c. 14

Probation of Offenders Act, 1907

7 Edw. 7, c. 17

Public Health (Ireland) Act, 1878

41 & 42 Vict., c. 52

Rates on Agricultural Land (Relief) Acts, 1939 to 1980

Redundancy Payments Act, 1967

1967, No. 21

Redundancy Payments Acts, 1967 to 1991

Regional Technical Colleges Act, 1992

1992, No. 16

Registration of Business Names Act, 1963

1963, No. 30

Road Traffic Act, 1961

1961, No. 24

Roads Act, 1920

10 & 11 Geo. 5, c. 72

Securitisation (Proceeds of Certain Mortgages) Act, 1995

1995, No. 35

Settled Land Act, 1882

45 & 46 Vict., c. 38

Shannon Free Airport Development Company Limited (Amendment) Act, 1970

1970, No. 9

Social Welfare (Consolidation) Act, 1993

1993, No. 27

Stamp Act, 1891

54 & 55 Vict., c. 39

State Property Act, 1954

1954, No. 25

Status of Children Act, 1987

1987, No. 26

Succession Act, 1965

1965, No. 27

Superannuation and Pensions Act, 1963

1963, No. 24

Temple Bar Area Renewal and Development Act, 1991

1991, No. 19

Tourist Traffic Act, 1939

1939, No. 24

Tourist Traffic Act, 1957

1957, No. 27

Tourist Traffic Acts, 1939 to 1995

Trade Union Act, 1941

1941, No. 22

Trade Union Act, 1942

1942, No. 23

Trustee Savings Banks Act, 1989

1989, No. 21

Trustee Savings Banks Acts, 1863 to 1989

Údarás na Gaeltachta Act, 1979.

1979, No. 5

Unit Trusts Act, 1972

1972, No. 17

Unit Trusts Act, 1990

1990, No. 37

Urban Renewal Act, 1986

1986, No. 19

Value-Added Tax Act, 1972

1972, No. 22

Value-Added Tax Acts, 1972 to 1997

Vocational Education Act, 1930

1930, No. 29

Vocational Education Acts, 1930 to 1993

Voluntary Health Insurance Act, 1957

1957, No. 1

Waiver of Certain Tax, Interest and Penalties Act, 1993

1993, No. 24

Wealth Tax Act, 1975

1975, No. 25

Youth Employment Agency Act, 1981

1981, No. 32

Finance Act, 1929

No. 32 of 1929

Finance Act, 1958

No. 25 of 1958

Finance (No. 2) Act, 1959

No. 42 of 1959

Finance Act, 1923

No. 21 of 1923

Finance Act, 1924

No. 27 of 1924

Income Tax (Employments) Regulations, 1960

S.I. No. 28 of 1960

(Unemployment Benefit and Pay-Related Benefit) Order, 1994

S.I. No. 19 of 1994

Ireland (Designation and Immunities) Order, 1986

S.I. No. 394 of 1986

Road Traffic (Public Service Vehicles) Regulations, 1963

S.I. No. 191 of 1963

European Communities (European Economic Interest Groupings) Regulations, 1989

S.I. No. 191 of 1989

Income Tax (Construction Contracts) Regulations, 1971

S.I. No. 1 of 1971

Income Tax (Rent Relief) Regulations, 1982

S.I. No. 318 of 1982

European Communities (Fresh Meat) Regulations, 1987

S.I. No. 284 of 1987

European Communities (Common Agricultural Policy) (Market Intervention) Regulations, 1973

S.I. No. 24 of 1973

Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996

S.I. No. 312 of 1996

Housing (Improvement Grants) Regulations, 1983

S.I. No. 330 of 1983

(Establishment of Interim Board) Order, 1994

S.I. No. 408 of 1994

European Communities (Retirement of Farmers) Regulations, 1974

S.I. No. 116 of 1974

European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989

S.I. No. 78 of 1989

(Taxes on Income and Capital Gains) (United Kingdom) Order, 1976

S.I. No. 319 of 1976

European Communities (Intrastat) Regulations, 1993

S.I. No. 136 of 1993

Imposition of Duties (No. 221) (Excise Duties) Order, 1975

S.I. No. 307 of 1975

General Medical Services (Payments) Board (Establishment) Order, 1972

S.I. No. 184 of 1972

Income Tax (Purchased Life Annuities) Regulations, 1959

S.I. No. 152 of 1959

Value-Added Tax Regulations, 1979

S.I. No. 63 of 1979

Health Contribution Regulations, 1979

S.I. No. 107 of 1979

Youth Employment Levy Regulations 1982

S.I. No. 84 of 1982

Health Contributions (Amendment) Regulations, 1988

S.I. No. 51 of 1988

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Number 39 of 1997


TAXES CONSOLIDATION ACT. 1997

AN ACT TO CONSOLIDATE ENACTMENTS RELATING TO INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX, INCLUDING CERTAIN ENACTMENTS RELATING ALSO TO OTHER TAXES AND DUTIES. [30th November, 1997]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

INTERPRETATION AND BASIC CHARGING PROVISIONS

PART 1

Interpretation

Interpretation of this Act.

[ITA67 s3; FA74 s86 and Sch2 PtI; CTA76 s155(1) and (2); CGT(A)78 s1(1); FA80 s9]

1.—(1) In this Act, except where the context otherwise requires, “repealed enactments” has the meaning assigned to it by section 1098 .

(2) In this Act and in any Act passed after this Act, except where the context otherwise requires—

“the Capital Gains Tax Acts” means the enactments relating to capital gains tax in this Act and in any other enactment;

“the Corporation Tax Acts” means the enactments relating to corporation tax in this Act and in any other enactment, together with the Income Tax Acts in so far as those Acts apply for the purposes of corporation tax;

“the Income Tax Acts” means the enactments relating to income tax in this Act and in any other enactment;

“the Tax Acts” means the Income Tax Acts and the Corporation Tax Acts.

(3) References in this Act to any enactment shall, except where the context otherwise requires, be construed as references to that enactment as amended or extended by any subsequent enactment.

(4) In this Act a reference to a Part, section or Schedule is to a Part or section of, or Schedule to, this Act, unless it is indicated that reference to some other enactment is intended.

(5) In this Act a reference to a subsection, paragraph, subparagraph, clause or subclause is to the subsection, paragraph, subparagraph, clause or subclause of the provision (including a Schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.

Interpretation of Tax Acts.

[ITA67 s1(1); CTA76 s155(3) to (5) and s171; F(MP)A68 s3(2) and Sch PtI; FA74 s1; FA75 s33(1); FA77 s41(1); FA97 s146(1) and Sch9 PtI par1(1)]

2.—(1) In the Tax Acts, except where otherwise provided or the context otherwise requires—

“Appeal Commissioners” has the meaning assigned to it by section 850 ;

“body of persons” means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons, whether corporate or not corporate;

“capital allowance” means any allowance (other than an allowance or deduction to be made in computing profits or gains) under—

(a) Part 9,

(b) section 658,

(c) Chapter 1 of Part 24, or

(d) Part 29,

and “capital allowances” shall be construed accordingly;

“Clerk to the Appeal Commissioners” means the person for the time being authorised by the Appeal Commissioners to act as such;

“Collector-General” means the Collector-General appointed under section 851 ;

“inspector” means an inspector of taxes appointed under section 852 ;

“local authority” means—

(a) the corporation of a county or other borough,

(b) the council of a county, or

(c) the council of an urban district;

“ordinary share capital”, in relation to a company, means all the issued share capital (by whatever name called) of the company, other than capital the holders of which have a right to a dividend at a fixed rate, but have no other right to share in the profits of the company;

“profession” includes vocation;

“resident” and “ordinarily resident”, in relation to an individual, shall be construed in accordance with Part 34 ;

“statute” has the same meaning as in section 3 of the Interpretation Act, 1937 ;

“tax credit” means a credit under section 136 ;

“year of assessment” means a year for which income tax is imposed by any Act imposing duties of income tax;

“the year 1997-98” means the year of assessment beginning on the 6th day of April, 1997, and any corresponding expression in which 2 years are similarly mentioned means the year of assessment beginning on the 6th day of April in the first-mentioned of those 2 years;

a source of income is within the charge to corporation tax or income tax if that tax is chargeable on the income arising from it, or would be so chargeable if there were any such income, and references to a person, or to income, being within the charge to tax, shall be similarly construed.

(2) Except where the context otherwise requires, in the Tax Acts, and in any enactment passed after this Act which by an express provision is to be construed as one with those Acts, “tax”, where neither income tax nor corporation tax is specified, means either of those taxes.

(3) Subsection (2) is without prejudice to section 76 (which applies income tax law for certain purposes of corporation tax), and accordingly the use of “income tax” rather than “tax” in any provision of the Income Tax Acts is not a conclusive indication that that provision is not applied to corporation tax by section 76.

(4) In the Tax Acts (other than sections 24 , 25 and 239 ), except where the context otherwise requires—

(a) references to income tax paid by a person by deduction shall be construed as including references to a tax credit to which the person is entitled, and

(b) references to repayment of income tax shall be construed as including references to payment of a tax credit.

Interpretation of Income Tax Acts.

[ITA67 s1(1) and s2; FA69 s65 and Sch5; FA74 s1; CGTA75 s2(5); FA91 s2(3) and Sch1 PtI par1; FA93 s2(2) and Sch1 PtI; FA94 s2(2); FA96 s132(1) and Sch5 PtI par1(1)]

3.—(1) In the Income Tax Acts, except where otherwise provided or the context otherwise requires—

“higher rate”, in relation to tax, means the rate of tax known by that description and provided for in section 15 ;

“incapacitated person” means any minor or person of unsound mind;

“relative” includes any person of whom the person claiming a deduction had the custody and whom he or she maintained at his or her own expense while that person was under the age of 16 years;

“standard rate”, in relation to tax, means the rate of tax known by that description and provided for in section 15 ;

“tax” means income tax;

“taxable income” has the meaning assigned to it by section 458 ;

“total income” means total income from all sources as estimated in accordance with the Income Tax Acts;

“trade” includes every trade, manufacture, adventure or concern in the nature of trade.

(2) (a) Subject to subsection (3), in the Income Tax Acts, “earned income”, in relation to an individual, means—

(i) any income arising in respect of any remuneration from any office or employment of profit held by the individual, or in respect of any pension, superannuation or other allowance, deferred pay, or compensation for loss of office, given in respect of the past services of the individual or of the husband or parent of the individual in any office or employment of profit, or given to the individual in respect of the past services of any deceased person, whether or not the individual or husband or parent of the individual shall have contributed to such pension, superannuation allowance or deferred pay,

(ii) any income from any property which is attached to or forms part of the emoluments of any office or employment of profit held by the individual, and

(iii) any income charged under Schedule D and immediately derived by the individual from the carrying on or exercise by the individual of his or her trade or profession, either as an individual or, in the case of a partnership, as a partner personally acting in the partnership.

(b) In cases where the profits of a wife are deemed to be profits of the husband, any reference in this subsection to an individual includes either the husband or the wife.

(3) Without prejudice to the generality of subsection (2), in the Income Tax Acts, except where otherwise expressly provided, “earned income” includes—

(a) any annuity made payable to an individual under the terms of an annuity contract or trust scheme for the time being approved by the Revenue Commissioners for the purposes of Chapter 2 of Part 30 to the extent to which such annuity is payable in return for any amount on which relief is given under section 787 , and

(b) any payment or other sum which is or is deemed to be income chargeable to tax under Schedule E for any purpose of the Income Tax Acts.

(4) References to profits or gains in the Income Tax Acts shall not include references to chargeable gains within the meaning of the Capital Gains Tax Acts.

Interpretation of Corporation Tax Acts.

[CTA76 s1(5)(a) to (d), s155(5), (9), (10), (11), (12) and (13); FA86 s57(1); FA90 s29(4); FA93 s42; FA97 s37(1)]

4.—(1) In the Corporation Tax Acts, except where the context otherwise requires—

“accounting date” means the date to which a company makes up its accounts, and “period of account” means the period for which a company does so;

“allowable loss” does not include, for the purposes of corporation tax in respect of chargeable gains, a loss accruing to a company in such circumstances that if a gain accrued the company would be exempt from corporation tax in respect of the gain;

“branch or agency” means any factorship, agency, receivership, branch or management;

“chargeable gain” has the same meaning as in the Capital Gains Tax Acts, but does not include a gain accruing on a disposal made before the 6th day of April, 1976;

“charges on income” has the meaning assigned to it by section 243 (1);

“close company” has the meaning assigned to it by sections 430 and 431 ;

“company” means any body corporate and includes a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989 , but does not include—

(a) a health board,

(b) a grouping within the meaning of section 1014 ,

(c) a vocational educational committee established under the Vocational Education Act, 1930 ,

(d) a committee of agriculture established under the Agriculture Act, 1931 , or

(e) a local authority, and for this purpose “local authority” has the meaning assigned to it by section 2 (2) of the Local Government Act, 1941 , and includes a body established under the Local Government Services (Corporate Bodies) Act, 1971 ;

“distribution” has the meaning assigned to it by Chapter 2 of Part 6 and sections 436 and 437 ;

“the financial year” followed by a reference to the year 1996 or any other year means the year beginning on the 1st day of January of such year;

“franked investment income” and “franked payment” shall be construed in accordance with section 156 ;

“group relief” has the meaning assigned to it by section 411 ;

“interest” means both annual or yearly interest and interest other than annual or yearly interest;

“preference dividend” means a dividend payable on a preferred share or preferred stock at a fixed rate per cent or, where a dividend is payable on a preferred share or preferred stock partly at a fixed rate per cent and partly at a variable rate, such part of that dividend as is payable at a fixed rate per cent;

“profits” means income and chargeable gains;

“standard credit rate” for a year of assessment means 21 per cent, and accordingly “standard credit rate per cent” for a year of assessment means 21;

“standard rate per cent” for a year of assessment means 26 where the standard rate for that year is 26 per cent and similarly as regards any reference to the standard rate per cent for a year of assessment for which the standard rate is other than 26 per cent;

“trade” includes vocation and includes also an office or employment.

(2) Except where otherwise provided by the Corporation Tax Acts and except where the context otherwise requires, words and expressions used in the Income Tax Acts have the same meaning in the Corporation Tax Acts as in those Acts; but no provision of the Corporation Tax Acts as to the interpretation of any word or expression, other than a provision expressed to extend to the use of that word or expression in the Income Tax Acts, shall be taken to affect its meaning in those Acts as they apply for the purposes of corporation tax.

(3) References in the Corporation Tax Acts to distributions or payments received by a company apply to any distributions or payments received by another person on behalf of or in trust for the company but not to any distributions or payments received by the company on behalf of or in trust for another person.

(4) References in the Corporation Tax Acts to—

(a) profits brought into charge to corporation tax are references to the amount of those profits chargeable to corporation tax before any deduction from those profits for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description,

(b) total income brought into charge to corporation tax are references to the amount, calculated before any deduction mentioned in paragraph (a), of the total income from all sources included in any profits brought into charge to corporation tax, and

(c) an amount of profits on which corporation tax falls finally to be borne are references to the amount of those profits after making all deductions and giving all reliefs that for the purposes of corporation tax are made or given from or against those profits, including deductions and reliefs which under any provision are treated as reducing them for those purposes.

(5) For the purposes of the Corporation Tax Acts, except where otherwise provided, dividends shall be treated as paid on the date when they become due and payable.

(6) Except where otherwise provided by the Corporation Tax Acts, any apportionment to different periods to be made under the Corporation Tax Acts shall be made on a time basis according to the respective lengths of those periods.

Interpretation of Capital Gains Tax Acts.

[CGTA75 s2(1), (3) and (4); CTA76 s140(2) and Sch2 PtII par1; FA80 s61(a); FA90 s29(3); FA97 s146(1) and Sch9 PtI par9(1)]

5.—(1) In the Capital Gains Tax Acts, except where the context otherwise requires—

“Appeal Commissioners” has the meaning assigned to it by section 850 ;

“body of persons” has the same meaning as in section 2 ;

“branch or agency” means any factorship, agency, receivership, branch or management, but does not include the brokerage or agency of a broker or agent referred to in section 1039 ;

“local authority” has the meaning assigned to it by section 2 (2) of the Local Government Act, 1941 , and includes a body established under the Local Government Services (Corporate Bodies) Act, 1971 ;

“allowable loss” has the meaning assigned to it by section 546 ;

“capital allowance” means any allowance under the provisions of the Tax Acts which relate to allowances in respect of capital expenditure, and includes an allowance under section 284 ;

“chargeable gain” has the same meaning as in section 545 ;

“charity” has the same meaning as in section 208 ;

“class”, in relation to shares or securities, means a class of shares or securities of any one company;

“close company” has the meaning assigned to it by section 430 ;

“company” means any body corporate, but does not include a grouping within the meaning of section 1014 ;

“control” shall be construed in accordance with section 432 ;

“inspector” means an inspector of taxes appointed under section 852 ;

“land” includes any interest in land;

“lease”—

(a) in relation to land, includes an underlease, sub-lease or any tenancy or licence, and any agreement for a lease, underlease, sub-lease or tenancy or licence and, in the case of land outside the State, any interest corresponding to a lease as so defined, and

(b) in relation to any description of property other than land, means any kind of agreement or arrangement under which payments are made for the use of, or otherwise in respect of, property,

and “lessor”, “lessee” and “rent” shall be construed accordingly;

“legatee” includes any person taking under a testamentary disposition or an intestacy or partial intestacy or by virtue of the Succession Act, 1965 , or by survivorship, whether such person takes beneficially or as trustee, and a person taking under a donatio mortis causa shall be treated as a legatee and such person's acquisition as made at the time of the donor's death and, for the purposes of this definition and of any reference to a person acquiring an asset as legatee, property taken under a testamentary disposition or on an intestacy or partial intestacy or by virtue of the Succession Act, 1965 , includes any asset appropriated by the personal representatives in or towards the satisfaction of a pecuniary legacy or any other interest or share in the property devolving under the disposition or intestacy or by virtue of the Succession Act, 1965 ;

“market value” shall be construed in accordance with section 548 ;

“minerals” has the same meaning as in section 3 of the Minerals Development Act, 1940 ;

“mining” means mining operations in the State for the purpose of obtaining, whether by underground or surface working, any minerals;

“part disposal” has the meaning assigned to it by section 534 ;

“personal representative” has the same meaning as in section 799 ;

“prescribed” means prescribed by the Revenue Commissioners;

“profession” includes vocation;

“resident” and “ordinarily resident”, in relation to an individual, shall be construed in accordance with Part 34 ;

“settled property” means any property held in trust other than property to which section 567 applies, but does not include any property held by a trustee or assignee in bankruptcy or under a deed of arrangement;

“settlement” and “settlor” have the same meanings respectively as in section 10 , and “settled property” shall be construed accordingly;

“shares” includes stock, and shares or debentures comprised in any letter of allotment or similar instrument shall be treated as issued unless the right to the shares or debentures conferred by such letter or instrument remains provisional until accepted and there has been no acceptance;

“trade” has the same meaning as in the Income Tax Acts;

“trading stock” has the same meaning as in section 89 ;

“unit trust” means any arrangements made for the purpose, or having the effect, of providing facilities for the participation by the holders of units, as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or disposal of securities or any other property whatever;

“units”, in relation to a unit trust, means any units (whether described as units or otherwise) into which are divided the beneficial interests in the assets subject to the trusts of a unit trust;

“unit holder”, in relation to a unit trust, means a holder of units of the unit trust;

“wasting asset” has the meaning assigned to it by section 560 and paragraph 2 of Schedule 14 ;

“year of assessment”, in relation to capital gains tax, means a year beginning on the 6th day of April;

“the year 1997-98” means the year of assessment beginning on the 6th day of April, 1997, and any corresponding expression in which 2 years are similarly mentioned means the year of assessment beginning on the 6th day of April in the first-mentioned of those 2 years.

(2) (a) References in the Capital Gains Tax Acts to a married woman living with her husband shall be construed in accordance with section 1015 (2).

(b) For the purposes of paragraph (a), the reference in section 1015 (2) to a wife shall be construed as a reference to a married woman.

(3) Any provision in the Capital Gains Tax Acts introducing the assumption that assets are sold and immediately reacquired shall not imply that any expenditure is incurred as incidental to the sale or reacquisition.

Construction of references to child in Tax Acts and Capital Gains Tax Acts.

[FA77 s36; FA92 s16]

6.—For the purposes of the Tax Acts and the Capital Gains Tax Acts, except where the contrary intention appears—

(a) references in any of those Acts to a child (including references to a son or a daughter) include references to—

(i) a stepchild, and

(ii) a child who is—

(I) adopted under the Adoption Acts, 1952 to 1991, or

(II) the subject of a foreign adoption (within the meaning of section 1 of the Adoption Act, 1991 ) which is deemed to have been effected by a valid adoption order made under the Adoption Acts, 1952 to 1991,

and

(b) the relationship between a child referred to in paragraph (a)(ii) and any other person, or between other persons, that would exist if such child had been born to the child's adoptor or adoptors in lawful wedlock, shall be deemed to exist between such child and that other person, or between those other persons, and the relationship of any such child and any person that existed prior to the child being so adopted shall be deemed to have ceased,

and “adopted child” shall be construed in accordance with this section.

Application to certain taxing statutes of Age of Majority Act, 1985.

[FA86 s112(1) and (2)]

7.—(1) Notwithstanding subsection (4) of section 2 of the Age of Majority Act, 1985 (in this section referred to as “the Act of 1985”), subsections (2) and (3) of that section shall, subject to subsection (2), apply for the purposes of the Income Tax Acts and any other statutory provision (within the meaning of the Act of 1985) dealing with the imposition, repeal, remission, alteration or regulation of any tax or other duty under the care and management of the Revenue Commissioners, and accordingly section 2(4)(b)(vii) of the Act of 1985 shall cease to apply.

(2) Nothing in subsection (1) shall affect a claimant's entitlement to a deduction under section 462 or 465 .

Construction of certain taxing statutes in accordance with Status of Children Act, 1987.

[FA88 s74(1) and (2)]

8.—(1) In this section, “the Acts” means—

(a) the Tax Acts,

(b) the Capital Gains Tax Acts,

(c) the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act, and

(d) the statutes relating to stamp duty,

and any instruments made thereunder.

(2) Notwithstanding any provision of the Acts or the dates on which they were passed, in deducing any relationship between persons for the purposes of the Acts, the Acts shall be construed in accordance with section 3 of the Status of Children Act, 1987.

Subsidiaries.

[CTA76 s156]

9.—(1) For the purposes of the Tax Acts, except where otherwise provided, a company shall be deemed to be—

(a) a “51 per cent subsidiary” of another company if and so long as more than 50 per cent of its ordinary share capital is owned directly or indirectly by that other company,

(b) a “75 per cent subsidiary” of another company if and so long as not less than 75 per cent of its ordinary share capital is owned directly or indirectly by that other company,

(c) a “90 per cent subsidiary” of another company if and so long as not less than 90 per cent of its ordinary share capital is directly owned by that other company.

(2) In paragraphs (a) and (b) of subsection (1), “owned directly or indirectly” by a company means owned whether directly or through another company or other companies or partly directly and partly through another company or other companies.

(3) In this section, references to ownership shall be construed as references to beneficial ownership.

(4) For the purposes of this section, the amount of ordinary share capital of one company owned by a second company through another company or other companies, or partly directly and partly through another company or other companies, shall be determined in accordance with subsections (5) to (10).

(5) Where, in the case of a number of companies, the first directly owns ordinary share capital of the second and the second directly owns ordinary share capital of the third, then, for the purposes of this section, the first shall be deemed to own ordinary share capital of the third through the second and, if the third directly owns ordinary share capital of a fourth, the first shall be deemed to own ordinary share capital of the fourth through the second and third, and the second shall be deemed to own ordinary share capital of the fourth through the third, and so on.

(6) In this section—

(a) any number of companies of which the first directly owns ordinary share capital of the next and the next directly owns ordinary share capital of the next but one and so on, and, if there are more than 3, any 3 or more of them, are referred to as a “series”;

(b) in any series—

(i) that company which owns ordinary share capital of another through the remainder is referred to as “the first owner”;

(ii) that other company the ordinary share capital of which is so owned is referred to as “the last owned company”;

(iii) the remainder, if one only, is referred to as an “intermediary” and, if more than one, are referred to as “a chain of intermediaries”;

(c) a company in a series which directly owns ordinary share capital of another company in the series is referred to as an “owner”;

(d) any 2 companies in a series of which one owns ordinary share capital of the other directly, and not through one or more of the other companies in the series, are referred to as being directly related to one another.

(7) Where every owner in a series owns the whole of the ordinary share capital of the company to which it is directly related, the first owner shall be deemed to own through the intermediary or chain of intermediaries the whole of the ordinary share capital of the last owned company.

(8) Where one of the owners in a series owns a fraction of the ordinary share capital of the company to which it is directly related, and every other owner in the series owns the whole of the ordinary share capital of the company to which it is directly related, the first owner shall be deemed to own that fraction of the ordinary share capital of the last owned company through the intermediary or chain of intermediaries.

(9) Where—

(a) each of 2 or more of the owners in a series owns a fraction, and every other owner in the series owns the whole, of the ordinary share capital of the company to which it is directly related, or

(b) every owner in a series owns a fraction of the ordinary share capital of the company to which it is directly related,

the first owner shall be deemed to own through the intermediary or chain of intermediaries such fraction of the ordinary share capital of the last owned company as results from the multiplication of those fractions.

(10) Where the first owner in any series owns a fraction of the ordinary share capital of the last owned company in that series through the intermediary or chain of intermediaries in that series, and also owns another fraction or other fractions of the ordinary share capital of the last owned company, either—

(a) directly,

(b) through an intermediary which is not a member, or intermediaries which are not members, of that series,

(c) through a chain or chains of intermediaries of which one or some or all are not members of that series, or

(d) in a case where the series consists of more than 3 companies, through an intermediary which is a member, or intermediaries which are members, of the series, or through achain or chains of intermediaries consisting of some but not all of the companies of which the chain of intermediaries in the series consists,

then, for the purpose of ascertaining the amount of the ordinary share capital of the last owned company owned by the first owner, all those fractions shall be aggregated and the first owner shall be deemed to own the sum of those fractions.

Connected persons.

[FA96 s131(1) to (8)]

10.—(1) In this section—

“close company” has the meaning assigned to it by sections 430 and 431 ;

“company” has the same meaning as in section 4 (1);

“control” shall be construed in accordance with section 432 ;

“relative” means brother, sister, ancestor or lineal descendant and, for the purposes of the Capital Gains Tax Acts, also means uncle, aunt, niece or nephew;

“settlement” includes any disposition, trust, covenant, agreement or arrangement, and any transfer of money or other property or of any right to money or other property;

“settlor”, in relation to a settlement, means any person by whom the settlement was made, and a person shall be deemed for the purposes of this section to have made a settlement if the person has made or entered into the settlement directly or indirectly and, in particular (but without prejudice to the generality of the preceding words), if the person has provided or undertaken to provide funds directly or indirectly for the purpose of the settlement, or has made with any other person a reciprocal arrangement for that other person to make or enter into the settlement.

(2) For the purposes of the Tax Acts and the Capital Gains Tax Acts, except where the context otherwise requires, any question whether a person is connected with another person shall be determined in accordance with subsections (3) to (8) (any provision that one person is connected with another person being taken to mean that they are connected with one another).

(3) A person shall be connected with an individual if that person is the individual's husband or wife, or is a relative, or the husband or wife of a relative, of the individual or of the individual's husband or wife.

(4) A person in the capacity as trustee of a settlement shall be connected with—

(a) any individual who in relation to the settlement is a settlor,

(b) any person connected with such an individual, and

(c) a body corporate which is deemed to be connected with that settlement, and a body corporate shall be deemed to be connected with a settlement in any accounting period or, as the case may be, year of assessment if, at any time in that period or year, as the case may be, it is a close company (or only not a close company because it is not resident in the State) and the participators then include the trustees of or a beneficiary under the settlement.

(5) Except in relation to acquisitions or disposals of partnership assets pursuant to bona fide commercial arrangements, a person shall be connected with any person with whom such person is in partnership, and with the spouse or a relative of any individual with whom such person is in partnership.

(6) A company shall be connected with another company—

(a) if the same person has control of both companies, or a person (in this paragraph referred to as “the first-mentioned person”) has control of one company and persons connected with the first-mentioned person, or the first-mentioned person and persons connected with the first-mentioned person, have control of the other company, or

(b) if a group of 2 or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom such member is connected.

(7) A company shall be connected with another person if that person has control of the company or if that person and persons connected with that person together have control of the company.

(8) Any 2 or more persons acting together to secure or exercise control of, or to acquire a holding in, a company shall be treated in relation to that company as connected with one another and with any person acting on the direction of any of them to secure or exercise control of, or to acquire a holding in, the company.

Meaning of “control” in certain contexts.

[CTA76 s158]

11.—For the purposes of, and subject to, the provisions of the Corporation Tax Acts which apply this section, “control”, in relation to a company, means the power of a person to secure—

(a) by means of the holding of shares or the possession of voting power in or in relation to that or any other company, or

(b) by virtue of any powers conferred by the articles of association or other document regulating that or any other company,

that the affairs of the first-mentioned company are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than 50 per cent of the assets, or of more than 50 per cent of the income, of the partnership.

PART 2

The Charge to Tax

CHAPTER 1

Income tax

The charge to income tax.

[ITA67 s4; FA80 s55]

12.— Income tax shall, subject to the Income Tax Acts, be charged in respect of all property, profits or gains respectively described or comprised in the Schedules contained in the sections enumerated below—

Schedule C— Section 17 ;

Schedule D— Section 18 ;

Schedule E— Section 19 ;

Schedule F— Section 20 ;

and in accordance with the provisions of the Income Tax Acts applicable to those Schedules.

Extension of charge to income tax to profits and income derived from activities carried on and employments exercised on the Continental Shelf.

[FA73 s33(1)(a), (b) and (c), (2) to (5) and (7)]

13.—(1) In this section and in Schedule 1

“designated area” means an area designated by order under section 2 of the Continental Shelf Act, 1968 ;

“exploration or exploitation activities” means activities carried on in connection with the exploration or exploitation of so much of the sea bed and subsoil and their natural resources as is situated in the State or in a designated area;

“exploration or exploitation rights” means rights to assets to be produced by exploration or exploitation activities or to interests in or to the benefit of such assets.

(2) Any profits or gains from exploration or exploitation activities carried on in a designated area or from exploration or exploitation rights shall be treated for income tax purposes as profits or gains from activities or property in the State.

(3) Any profits or gains arising to any person not resident in the State from exploration or exploitation activities carried on in the State or in a designated area or from exploration or exploitation rights shall be treated for income tax purposes as profits or gains of a trade carried on by that person in the State through a branch or agency.

(4) Where exploration or exploitation activities are carried on by a person on behalf of the holder of a licence granted under the Petroleum and Other Minerals Development Act, 1960 , the holder of the licence shall, for the purpose of any assessment to income tax, be deemed to be the agent of that person.

(5) Any emoluments from an office or employment in respect of duties performed in a designated area in connection with exploration or exploitation activities shall be treated for income tax purposes as emoluments in respect of duties performed in the State.

(6) Schedule 1 shall apply for the purpose of supplementing this section.

Fractions of a pound and yearly assessments.

[ITA67 s5 and s6; FA70 s3]

14.—(1) The due proportion of income tax shall be charged for every fractional part of one pound, but no income tax shall be charged on a lower denomination than one penny.

(2) Every assessment and charge to income tax shall be made for a year commencing on the 6th day of April and ending on the following 5th day of April.

Rate of charge.

[FA91 s2; FA97 s2(1) and (2)]

15.—(1) Subject to subsection (2), income tax shall be charged for each year of assessment at the rate of tax specified in the Table to this section as the standard rate.

(2) Where a person who is charged to income tax for any year of assessment is an individual (other than an individual acting in afiduciary or representative capacity), such individual shall, notwithstanding anything in the Income Tax Acts but subject to section 16 (2), be charged to tax on such individual's taxable income—

(a) in a case in which such individual is assessed to tax otherwise than in accordance with section 1017 , at the rates specified in Part 1 of the Table to this section, or

(b) in a case in which such individual is assessed to tax in accordance with section 1017 , at the rates specified in Part 2 , of that Table,

and the rates in each Part of that Table shall be known respectively by the description specified in column (3) in each such Part opposite the mention of the rate or rates, as the case may be, in column (2) of that Part.

TABLE

Part 1

Part of taxable income

Rate of tax

Description of rate

(1)

(2)

(3)

The first £9,900

26 per cent

the standard rate

The remainder

48 per cent

the higher rate

Part 2

Part of taxable income

Rate of tax

Description of rate

(1)

(2)

(3)

The first £19,800

26 per cent

the standard rate

The remainder

48 per cent

the higher rate

Income tax charged by deduction.

[FA74 s5(2) and (3)]

16.—(1) In estimating under the Income Tax Acts the total income of any person, any income chargeable with tax by means of deduction at the standard rate in force for any year shall be deemed to be income of that year, and any deductions allowable on account of sums payable under deduction of tax at the standard rate in force for any year out of the property or profits of that person shall be allowed as deductions in respect of that year, notwithstanding that the income or sums, as the case may be, accrued or will accrue in whole or in part before or after that year.

(2) Where a person is required to be assessed and charged with tax in respect of any property, profits or gains out of which such person makes any payment in respect of any annual interest, annuity or other annual sum, or any royalty or other sum in respect of the user of a patent, such person shall, in respect of so much of the property, profits or gains as is equal to that payment and may be deducted in computing such person's total income, be charged at the standard rate only.

Schedule C.

[ITA67 s47 and s51]

17.—(1) The Schedule referred to as Schedule C is as follows:

SCHEDULE C

1. Tax under this Schedule shall be charged in respect of all profits arising from public revenue dividends payable in the State in any year of assessment.

2. Where a banker or any other person in the State, by means of coupons received from another person or otherwise on that other person's behalf, obtains payment of any foreign public revenue dividends, tax under this Schedule shall be charged in respect of the dividends.

3. Where a banker in the State sells or otherwise realises coupons for any foreign public revenue dividends and pays over the proceeds of such realisation to or carries such proceeds to the account of any person, tax under this Schedule shall be charged in respect of the proceeds of the realisation.

4. Where a dealer in coupons in the State purchases coupons for any foreign public revenue dividends otherwise than from a banker or another dealer in coupons, tax under this Schedule shall be charged in respect of the price paid on the purchase.

5. Nothing in paragraph 1 shall apply to any annuities which are not of a public nature.

6. The tax under this Schedule shall be charged for every one pound of the annual amount of the profits, dividends, proceeds of realisation or price paid on purchase charged.

(2) Section 32 shall apply for the interpretation of Schedule C.

Schedule D.

[ITA67 s52 and s53; FA69 s33(1) and Sch4 Pt I, s65(1) and Sch5 Pt I]

18.—(1) The Schedule referred to as Schedule D is as follows:

SCHEDULE D

1. Tax under this Schedule shall be charged in respect of—

(a) the annual profits or gains arising or accruing to—

(i) any person residing in the State from any kind of property whatever, whether situate in the State or elsewhere,

(ii) any person residing in the State from any trade, profession, or employment, whether carried on in the State or elsewhere,

(iii) any person, whether a citizen of Ireland or not, although not resident in the State, from any property whatever in the State, or from any trade, profession or employment exercised in the State, and

(iv) any person, whether a citizen of Ireland or not, although not resident in the State, from the sale of any goods, wares or merchandise manufactured or partly manufactured by such person in the State,

and

(b) all interest of money, annuities and other annual profits or gains not charged under Schedule C or Schedule E, and not specially exempted from tax,

in each case for every one pound of the annual amount of the profits or gains.

2. Profits or gains arising or accruing to any person from an office, employment or pension shall not by virtue of paragraph 1 be chargeable to tax under this Schedule unless they are chargeable to tax under Case III of this Schedule.

(2) Tax under Schedule D shall be charged under the following Cases:

Case I— Tax in respect of—

(a) any trade;

(b) profits or gains arising out of lands, tenements and hereditaments in the case of any of the following concerns—

(i) quarries of stone, slate, limestone or chalk, or quarries or pits of sand, gravel or clay,

(ii) mines of coal, tin, lead, copper, pyrites, iron and other mines, and

(iii) ironworks, gasworks, salt springs or works, alum mines or works, waterworks, streams of water, canals, inland navigations, docks, drains or levels, fishings, rights of markets and fairs, tolls, railways and other ways, bridges, ferries and other concerns of the like nature having profits from or arising out of any lands, tenements or hereditaments;

Case II— Tax in respect of any profession not contained in any other Schedule;

Case III— Tax in respect of—

(a) any interest of money, whether yearly or otherwise, or any annuity, or other annual payment, whether such payment is payable in or outside the State, either as a charge on any property of the person paying the same by virtue of any deed or will or otherwise, or as a reservation out of it, or as a personal debt or obligation by virtue of any contract, or whether the same is received and payable half-yearly or at any shorter or more distant periods, but not including any payment chargeable under Case V of Schedule D;

(b) all discounts;

(c) profits on securities bearing interest payable out of the public revenue other than those charged under Schedule C;

(d) interest on any securities issued, or deemed within the meaning of section 36 to be issued, under the authority of the Minister for Finance, in cases where such interest is paid without deduction of tax;

(e) income arising from securities outside the State except such income as is charged under Schedule C;

(f) income arising from possessions outside the State;

Case IV— Tax in respect of any annual profits or gains not within any other Case of Schedule D and not charged by virtue of any other Schedule;

Case V— Tax in respect of any rent in respect of any premises or any receipts in respect of any easement;

and subject to and in accordance with the provisions of the Income Tax Acts applicable to those Cases respectively.

(3) This section is without prejudice to any other provision of the Income Tax Acts directing tax to be charged under Schedule D or under one or other of the Cases mentioned in subsection (2), and tax so directed to be charged shall be charged accordingly.

Schedule E.

[ITA67 s109 and Sch2 rule2]

19.—(1) The Schedule referred to as Schedule E is as follows:

SCHEDULE E

1. In this Schedule, “annuity” and “pension” include respectively an annuity which is paid voluntarily or is capable of being discontinued and a pension which is so paid or is so capable.

2. Tax under this Schedule shall be charged in respect of every public office or employment of profit, and in respect of every annuity, pension or stipend payable out of the public revenue of the State, other than annuities charged under Schedule C, for every one pound of the annual amount thereof.

3. Tax under this Schedule shall also be charged in respect of any office, employment or pension the profits or gains arising or accruing from which would be chargeable to tax under Schedule D but for paragraph 2 of that Schedule.

4. Paragraphs 1 to 3 are without prejudice to any other provision of the Income Tax Acts directing tax to be charged under this Schedule, and tax so directed to be charged shall be charged accordingly.

5. Subsection (2) and sections 114 , 115 and 925 shall apply in relation to the tax to be charged under this Schedule.

(2) Tax under Schedule E shall be paid in respect of all public offices and employments of profit in the State or by the officers respectively described below—

(a) offices belonging to either House of the Oireachtas;

(b) offices belonging to any court in the State;

(c) public offices under the State;

(d) officers of the Defence Forces;

(e) offices or employments of profit under any ecclesiastical body;

(f) offices or employments of profit under any company or society, whether corporate or not corporate;

(g) offices or employments of profit under any public institution, or on any public foundation of whatever nature, or for whatever purpose established;

(h) offices or employments of profit under any public corporation or local authority, or under any trustees or guardians of any public funds, tolls or duties;

(i) all other public offices or employments of profit of a public nature.

Schedule F.

[CTA76 s83(2) and (3)]

20.—(1) The Schedule referred to as Schedule F is as follows:

SCHEDULE F

1. In this Schedule, “distribution” has the meaning assigned to it by Chapter 2 of Part 6 and sections 436 and 437 .

2. Income tax under this Schedule shall be chargeable for any year of assessment in respect of all dividends and other distributions in that year of a company resident in the State which are not specially excluded from income tax and, for the purposes of income tax, all such distributions shall be regarded as income however they are to be dealt with in the hands of the recipient.

3. For the purposes of the Tax Acts, any such distribution in respect of which a person is entitled to a tax credit shall be treated as representing income equal to the aggregate of the amount or value of that distribution and the amount of that credit, and accordingly income tax under this Schedule shall be charged on that aggregate.

(2) No distribution chargeable under Schedule F shall be chargeable under any other provision of the Income Tax Acts.

CHAPTER 2

Corporation tax

The charge to corporation tax and exclusion of income tax and capital gains tax.

[CTA76 s1(1), (2) and (3); FA97 s59(1)]

21.—(1) Corporation tax shall be charged on the profits of companies at the rate of—

(a) 38 per cent for—

(i) the financial year 1996, and

(ii) that part of the financial year 1997 beginning on the 1st day of January, 1997, and ending on the 31st day of March, 1997,

and

(b) 36 per cent for—

(i) that part of the financial year 1997 beginning on the 1st day of April, 1997, and ending on the 31st day of December, 1997, and

(ii) each subsequent financial year.

(2) The provisions of the Income Tax Acts relating to the charge of income tax shall not apply to income of a company (not arising to it in a fiduciary or representative capacity) if—

(a) the company is resident in the State, or

(b) the income is, in the case of a company not so resident, within the chargeable profits of the company as defined for the purposes of corporation tax.

(3) Subject to section 649 , a company shall not be chargeable to capital gains tax in respect of gains accruing to it so that it is chargeable in respect of them to corporation tax.

Reduced rate of corporation tax for certain income.

[CTA76 s28A(1) to (8) and FA96 s44; FA 97 s60(1)(a) and (2)]

22.—(1) (a) Notwithstanding section 21 , so much of the profits of a company for an accounting period as does not exceed the lower of either—

(i) the specified amount in relation to the accounting period, or

(ii) the income of the company for the accounting period,

shall be charged to corporation tax as if the rate of corporation tax for the financial year were—

(I) as respects accounting periods ending before the 1st day of April, 1997, 30 per cent, and

(II) as respects accounting periods ending on or after that date, 28 per cent.

(b) For the purposes of paragraph (a), where an accounting period of a company begins before the 1st day of April, 1997, and ends on or after that day, it shall be divided into 2 parts, one beginning on the day on which the accounting period begins and ending on the 31st day of March, 1997, and the other beginning on the 1st day of April, 1997, and ending on the day on which the accounting period ends, and both parts shall be treated for the purpose of this section as if they were separate accounting periods of the company.

(2) For the purposes of subsection (1) and subject to subsections (3) and (4), the specified amount in relation to an accounting period of a company shall be an amount determined by the formula—

£50,000 ×

N

__

12

×

1

__

A

where—

N is the number of months in the accounting period, and

A is one plus the number of associated companies which the company has in the accounting period.

(3) (a) Where, in the case of a company which has one or more associated companies in an accounting period—

(i) the accounting period of the company ends on a date on which accounting periods of all of the associated companies end, and

(ii) the company and all of the associated companies jointly elect in writing that this subsection shall apply,

then—

(I) the specified amount under subsection (2) shall be computed as if, in relation to the accounting period, the company and all of the associated companies were a single company (with no associated companies) with an accounting period ending on that date and beginning on the earliest date on which the accounting period of the company, or of any of the associated companies, begins, and

(II) the specified amount computed under subparagraph (I) shall be allocated to the accounting period of the company and to the accounting periods of its associated companies in such manner as is specified in the election, and the amount so allocated to a company shall be deemed to be the specified amount in relation to the accounting period of the company.

(b) Notwithstanding paragraph (a)—

(i) the aggregate of amounts allocated under subparagraph (II) of that paragraph for an accounting period shall not exceed the specified amount computed under subparagraph (I) of that paragraph, and

(ii) the amount allocated to an accounting period of a company shall not exceed the amount which would have been the specified amount in relation to the accounting period if the company had no associated companies in the accounting period.

(4) Where, in the case of a company which has one or more associated companies in an accounting period, the end of the accounting period of the company and the end of an accounting period of each of its associated companies do not coincide—

(a) subsection (3) shall apply as respects any period (in this subsection referred to as a “relevant period”) which falls in the accounting period of the company and an accounting period of each of the associated companies as if the relevant period were an accounting period of the company and of the associated companies,

(b) the amount allocated to any company in respect of a relevant period shall be deemed to be the specified amount in relation to that period, and

(c) where an amount has been allocated to a company in respect of a relevant period falling in an accounting period of the company, the specified amount for the accounting period of the company shall be the aggregate of—

(i) any specified amounts in relation to relevant periods falling in the accounting period, and

(ii) the amounts which would be the specified amounts in relation to any periods (which are not relevant periods) within the accounting period if each of those periods was treated as an accounting period;

but the specified amount in relation to an accounting period of a company shall not exceed the amount which would be the specified amount in relation to the accounting period if the company had no associated companies in the accounting period.

(5) (a) In this subsection, “control” shall be construed in accordance with section 432 .

(b) In applying this section to any accounting period of a company, an associated company which—

(i) has not carried on any trade or business at any time in that accounting period or, if an associated company during part only of that accounting period, at any time in that part of that accounting period, or

(ii) has no income within the charge to corporation tax in the State in the accounting period,

shall be disregarded and, for the purposes of this section, a company shall be treated as an associated company of another company at a particular time if at that time one of the 2 companies has control of the other company or both companies are under the control of the same person or persons.

(6) In determining how many associated companies a company has in an accounting period or whether a company has an associated company in an accounting period, an associated company shall be counted even if it was an associated company for part only of the accounting period, and 2 or more associated companies shall be counted even if they were associated companies for different parts of the accounting period.

(7) For the purposes of this section, the income of a company for an accounting period shall be taken to be an amount determined by the formula—

I − M

where—

I is the amount of the company's profits for the accounting period on which corporation tax falls finally to be borne exclusive of the part of the profits attributed to chargeable gains, and that part shall be taken to be the amount brought into the company's profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description, and

M is the amount of the company's income from the sale of goods for the purpose of section 448 .

(8) (a) A company shall include in the return required to be delivered under section 951

(i) a statement specifying—

(I) the amount of its profits to be charged to corporation tax at the rate specified in subsection (1), and

(II) the number of companies which are its associated companies in relation to the accounting period,

and

(ii) a copy of any election made under subsection (3) or (4).

(b) A company which has specified an amount under paragraph (a) shall not be entitled to alter the amount so specified.

Application of section 13 for purposes of corporation tax.

[CTA76 s140(1) and Sch2 PtI par34]

23. Section 13 shall apply for the purposes of corporation tax as it applies for the purposes of income tax.

Companies resident in the State: income tax on payments made or received.

[CTA76 s3]

24.—(1) No payment made by a company resident in the State shall by virtue of this section or otherwise be treated for any purpose of the Income Tax Acts as paid out of profits or gains brought into charge to income tax, nor shall any right or obligation under the Income Tax Acts to deduct income tax from any payment be affected by the fact that the recipient is a company not chargeable to income tax in respect of the payment.

(2) Subject to the Corporation Tax Acts, where a company resident in the State receives any payment on which it bears income tax by deduction, the income tax on that payment shall be set off against any corporation tax assessable on the company by an assessment made for the accounting period in which that payment is to be taken into account for corporation tax (or would be taken into account but for any exemption from corporation tax), and accordingly in respect of that payment the company, unless wholly exempt from corporation tax, shall not be entitled to a repayment of income tax before the assessment for that accounting period is finally determined and it appears that a repayment is due.

(3) References in this section to payments received by a company apply to any payments received by another person on behalf of or in trust for the company, but not to any payments received by the company on behalf of or in trust for another person.

Companies not resident in the State.

[CTA76 s8(1), (2) and (3)]

25.—(1) A company not resident in the State shall not be within the charge to corporation tax unless it carries on a trade in the State through a branch or agency, but if it does so it shall, subject to any exceptions provided for by the Corporation Tax Acts, be chargeable to corporation tax on all its chargeable profits wherever arising.

(2) For the purposes of corporation tax, the chargeable profits of a company not resident in the State but carrying on a trade in the State through a branch or agency shall be—

(a) any trading income arising directly or indirectly through or from the branch or agency, and any income from property or rights used by, or held by or for, the branch or agency, but this paragraph shall not include distributions received from companies resident in the State, and

(b) such chargeable gains as but for the Corporation Tax Acts would be chargeable to capital gains tax in the case of a company not resident in the State;

but such chargeable profits shall not include chargeable gains accruing to the company on the disposal of assets which, at or before the time when the chargeable gains accrued, were not used in or for the purposes of the trade and were not used or held or acquired for the purposes of the branch or agency.

(3) Subject to section 729 , where a company not resident in the State receives any payment on which it bears income tax by deduction, and that payment forms part of, or is to be taken into account in computing, the company's income chargeable to corporation tax, the income tax on that payment shall be set off against any corporation tax assessable on that income by an assessment made for the accounting period in which the payment is to be taken into account for corporation tax, and accordingly in respect of that payment the company shall not be entitled to a repayment of income tax before the assessment for that accounting period is finally determined and it appears that a repayment is due.

General scheme of corporation tax.

[CTA76 s6(1) to (3); FA97 s59(2) and Sch6 PtI par1]

26.—(1) Subject to any exceptions provided for by the Corporation Tax Acts, a company shall be chargeable to corporation tax on all its profits wherever arising.

(2) A company shall be chargeable to corporation tax on profits accruing for its benefit under any trust, or arising under any partnership, in any case in which it would be so chargeable if the profits accrued to it directly, and a company shall be chargeable to corporation tax on profits arising in the winding up of the company, but shall not otherwise be chargeable to corporation tax on profits accruing to it in a fiduciary or representative capacity except as respects its own beneficial interest (if any) in those profits.

(3) Corporation tax for any financial year shall be charged on profits arising in that year; but assessments to corporation tax shall be made on a company by reference to accounting periods, and the amount chargeable (after making all proper deductions) of the profits arising in an accounting period shall where necessary be apportioned between the financial years in which the accounting period falls.

(4) Subsection (3) shall apply as respects accounting periods ending on or after the 1st day of April, 1997, as if—

(a) the period beginning on the 1st day of January, 1996, and ending on the 31st day of March, 1997, and

(b) the period beginning on the 1st day of April, 1997, and ending on the 31st day of December, 1998,

were each a financial year.

Basis of, and periods for, assessment.

[CTA76 s9]

27.—(1) Except where otherwise provided by the Corporation Tax Acts, corporation tax shall be assessed and charged for any accounting period of a company on the full amount of the profits arising in that period (whether or not received in or remitted to the State) without any deduction other than one authorised by the Corporation Tax Acts.

(2) An accounting period of a company shall begin for the purposes of corporation tax whenever—

(a) the company, not then being within the charge to corporation tax, comes within it whether by the coming into force of any provision of the Corporation Tax Acts, or by the company becoming resident in the State or acquiring a source of income, or otherwise, or

(b) an accounting period of the company ends without the company then ceasing to be within the charge to corporation tax.

(3) An accounting period of a company shall end for the purposes of corporation tax on the first occurrence of any of the following—

(a) the expiration of 12 months from the beginning of the accounting period,

(b) an accounting date of the company or, if there is a period for which the company does not make up accounts, the end of that period,

(c) the company beginning or ceasing to trade or to be, in respect of the trade or (if more than one) of all the trades carried on by it, within the charge to corporation tax,

(d) the company beginning or ceasing to be resident in the State, and

(e) the company ceasing to be within the charge to corporation tax.

(4) For the purposes of this section, a company resident in the State, if not otherwise within the charge to corporation tax, shall be treated as coming within the charge to corporation tax at the time when it commences to carry on business.

(5) Where a company carrying on more than one trade makes up accounts of any of those trades to different dates and does not make up general accounts for the whole of the company's activities, subsection (3) (b) shall apply with reference to the accounting date of such one of the trades as the Revenue Commissioners may determine.

(6) Where a chargeable gain or allowable loss accrues to a company at a time not otherwise within an accounting period of the company, an accounting period of the company shall then begin for the purposes of corporation tax and the gain or loss shall accrue in that accounting period.

(7) (a) Notwithstanding anything in subsections (1) to (6), where a company is wound up, an accounting period shall end and a new one shall begin with the commencement of the winding up, and thereafter an accounting period shall not end otherwise than by the expiration of 12 months from its beginning or by the completion of the winding up.

(b) For the purposes of paragraph (a), a winding up shall be taken to commence on the passing by the company of a resolution for the winding up of the company, or on the presentation of a winding up petition if no such resolution has previously been passed and a winding up order is made on the petition, or on the doing of any other act for a like purpose in the case of a winding up otherwise than under the Companies Act, 1963.

(8) Where it appears to the inspector that the beginning or end of any accounting period of a company is uncertain, he or she may make an assessment on the company for such a period, not exceeding 12 months, as appears to him or her appropriate, and that period shall be treated for all purposes as an accounting period of the company unless—

(a) the inspector on further facts coming to his or her knowledge sees fit to revise it, or

(b) on an appeal against the assessment in respect of some other matter, the company shows the true accounting periods,

and, if on an appeal against an assessment made by virtue of this subsection the company shows the true accounting periods, the assessment appealed against shall, as regards the period to which it relates, have effect as an assessment or assessments for the true accounting periods, and such other assessments may be made for any such periods or any of them as might have been made at the time when the assessment appealed against was made.

CHAPTER 3

Capital gains tax

Taxation of capital gains and rate of charge.

[CGTA75 s3(1) to (3); FA92 s60(1)(a)]

28.—(1) Capital gains tax shall be charged in accordance with the Capital Gains Tax Acts in respect of capital gains, that is, in respect of chargeable gains computed in accordance with those Acts and accruing to a person on the disposal of assets.

(2) Capital gains tax shall be assessed and charged for years of assessment in respect of chargeable gains accruing in those years.

(3) Except where otherwise provided by the Capital Gains Tax Acts, the rate of capital gains tax in respect of a chargeable gain accruing to a person on the disposal of an asset shall be 40 per cent, and any reference in those Acts to the rate specified in this section shall be construed accordingly.

Persons chargeable.

[CGTA75 s4(1) to (4) and (6) to (8), s51(1) and Sch4 par2(2); FA77 s54(1)(a) and Sch2 PtI]

29.—(1) In this section—

“designated area” means an area designated by order under section 2 of the Continental Shelf Act, 1968 ;

“exploration or exploitation rights” has the same meaning as in section 13 ;

“shares” includes stock and any security;

“security” includes securities not creating or evidencing a charge on assets, and interest paid by a company on money advanced without the issue of a security for the advance, or other consideration given by a company for the use of money so advanced, shall be treated as if paid or given in respect of a security issued for the advance by the company;

references to the disposal of assets mentioned in paragraphs (a) and (b) of subsection (3) and in subsection (6) include references to the disposal of shares deriving their value or the greater part of their value directly or indirectly from those assets, other than shares quoted on a stock exchange.

(2) Subject to any exceptions in the Capital Gains Tax Acts, a person shall be chargeable to capital gains tax in respect of chargeable gains accruing to such person in a year of assessment for which such person is resident or ordinarily resident in the State.

(3) Subject to any exceptions in the Capital Gains Tax Acts, a person who is neither resident nor ordinarily resident in the State shall be chargeable to capital gains tax for a year of assessment in respect of chargeable gains accruing to such person in that year on the disposal of—

(a) land in the State,

(b) minerals in the State or any rights, interests or other assets in relation to mining or minerals or the searching for minerals,

(c) assets situated in the State which at or before the time when the chargeable gains accrued were used in or for the purposes of a trade carried on by such person in the State through a branch or agency, or which at or before that time were used or held or acquired for use by or for the purposes of the branch or agency.

(4) Subsection (2) shall not apply in respect of chargeable gains accruing from the disposal of assets situated outside the State and the United Kingdom to an individual who satisfies the Revenue Commissioners that he or she is not domiciled in the State; but—

(a) the tax shall be charged on the amounts received in the State in respect of those chargeable gains,

(b) any such amounts shall be treated for the purposes of the Capital Gains Tax Acts as gains accruing when they are received in the State, and

(c) any losses accruing to the individual on the disposal of assets situated outside the State and the United Kingdom shall not be allowable losses for the purposes of the Capital Gains Tax Acts.

(5) For the purposes of subsection (4), all amounts paid, used or enjoyed in or in any manner or form transmitted or brought to the State shall be treated as received in the State in respect of any gain, and section 72 shall apply as it would apply if the gain were income arising from possessions outside of the State.

(6) Any gains accruing on the disposal of exploration or exploitation rights in a designated area shall be treated for the purposes of the Capital Gains Tax Acts as gains accruing on the disposal of assets situated in the State.

(7) Any gains accruing to a person who is neither resident nor ordinarily resident in the State on the disposal of assets mentioned in subsections (3)(b) and (6) shall be treated for the purposes of capital gains tax as gains accruing on the disposal of assets used for the purposes of a trade carried on by that person in the State through a branch or agency.

(8) Any person aggrieved by a decision of the Revenue Commissioners on any question as to domicile or ordinary residence arising under the Capital Gains Tax Acts may, by notice in writing to that effect given to the Revenue Commissioners within 2 months from the date on which notice of the decision is given to such person, make an application to have such person's claim for relief heard and determined by the Appeal Commissioners.

(9) Where an application is made under subsection (8), the Appeal Commissioners shall hear and determine the claim in the like manner as an appeal made to them against an assessment, and the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

Partnerships.

[CGTA75 s4(5)]

30.—Where 2 or more persons carry on a trade, business or profession in partnership—

(a) capital gains tax in respect of chargeable gains accruing to those persons on the disposal of any partnership assets shall be assessed and charged on them separately, and

(b) any partnership dealings in assets shall be treated as dealings by the partners and not by the firm as such.

Amount chargeable.

[CGTA75 s5(1)]

31.—Capital gains tax shall be charged on the total amount of chargeable gains accruing to the person chargeable in the year of assessment, after deducting—

(a) any allowable losses accruing to that person in that year of assessment, and

(b) in so far as they have not been allowed as a deduction from chargeable gains accruing in any previous year of assessment, any allowable losses accruing to that person in any previous year of assessment (not earlier than the year 1974-75).

INCOME TAX AND CORPORATION TAX: THE MAIN PROVISIONS

PART 3

Provisions Relating to the Schedule C Charge and Government and Other Public Securities

CHAPTER 1

Principal provisions relating to the Schedule C charge

Interpretation ( Chapter 1 ).

[ITA67 s51]

32.—In this Chapter—

“banker” includes a person acting as a banker;

“coupons” and “coupons for any foreign public revenue dividends” include warrants for or bills of exchange purporting to be drawn or made in payment of any foreign public revenue dividends;

“dividends”, except in the phrase “stock, dividends or interest”, means any interest, annuities, dividends or shares of annuities;

“foreign public revenue dividends” means dividends payable elsewhere than in the State (whether they are or are not also payable in the State) out of any public revenue other than the public revenue of the State;

“public revenue”, except where the context otherwise requires, includes the public revenue of any Government whatever and the revenue of any public authority or institution in any country outside the State;

“public revenue dividends” means dividends payable out of any public revenue.

Method of charge and payment.

[ITA67 s48]

33.—(1) Tax under Schedule C shall be charged by the Commissioners designated for that purpose by the Income Tax Acts, and shall be paid on behalf of the persons entitled to the profits, dividends, proceeds of realisation or price paid on purchase which are the subject of the tax—

(a) in the case of tax charged under paragraph 1 of that Schedule, by the persons and bodies of persons respectively entrusted with payment;

(b) in the case of tax charged under paragraph 2, 3 or 4 of that Schedule, by the banker or other person, or by the banker or by the dealer in coupons, as the case may be.

(2) Schedule 2 shall apply in relation to the assessment, charge and payment of tax under Schedule C.

Stock, dividends or interest belonging to the State.

[ITA67 s49(1) and (2); F(MP)A68 s3(3) and Sch PtII]

34.—(1) No tax shall be chargeable in respect of the stock, dividends or interest transferred to accounts in the books of the Bank of Ireland in the name of the Minister for Finance in pursuance of any statute, but the Bank of Ireland shall transmit to the Revenue Commissioners an account of the total amount of such stock, dividends or interest.

(2) No tax shall be chargeable in respect of the stock, dividends or interest belonging to the State in whatever name they may stand in the books of the Bank of Ireland.

Securities of foreign territories.

[ITA67 s50; F(MP)A68 s3(2) and Sch PtI]

35.—(1) (a) No tax shall be chargeable in respect of the dividends on any securities of any territory outside the State which are payable in the State, where it is proved to the satisfaction of the Revenue Commissioners that the person owning the securities and entitled to the dividends is not resident in the State; but, except where provided by the Income Tax Acts, no allowance shall be given or repayment made in respect of the tax on the dividends on the securities of any such territory which are payable in the State.

(b) Where the securities of any territory outside the State are held under any trust, and the person who is the beneficiary in possession under the trust is the sole beneficiary in possession and can, by means either of the revocation of the trust or of the exercise of any powers under the trust, call on the trustees at any time to transfer the securities to such person absolutely free from any trust, that person shall for the purposes of this section be deemed to be the person owning the securities.

(2) Relief under this section may be given by the Revenue Commissioners either by means of allowance or repayment on a claim being made to them for that purpose.

(3) Any person aggrieved by a decision of the Revenue Commissioners on any question as to residence arising under this section may, by notice in writing to that effect given to the Revenue Commissioners within 2 months from the date on which notice of the decision is given to such person, make an application to have such person's claim for relief heard and determined by the Appeal Commissioners.

(4) Where an application is made under subsection (3), the Appeal Commissioners shall hear and determine the claim in the like manner as an appeal made to them against an assessment, and the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

CHAPTER 2

Government and other public securities: interest payable without deduction of tax

Government securities.

[ITA67 s466; FA97 s146(1) and Sch9 PtI par1(31)]

36.—(1) The Minister for Finance may direct that any securities already issued or to be issued under that Minister's authority shall be deemed to have been, or shall be, issued subject to the condition that the interest on those securities shall be paid without deduction of tax

(2) The interest on all securities issued, or deemed to have been issued, subject to the condition referred to in subsection (1) shall be paid without deduction of tax, but all such interest shall be chargeable under Case III of Schedule D and, where any funds under the control of any court or public department are invested in any such securities, the person in whose name the securities are invested shall be the person so chargeable in respect of the interest on those securities.

(3) Where interest on any security is paid under this section without deduction of tax, every person by whom such interest is paid, every person who receives such interest on behalf of a registered or inscribed holder of the security, and every person who has acted as an intermediary in the purchase of the security, shall, on being so required by the Revenue Commissioners, furnish to them—

(a) the name and address of the person to whom such interest has been paid, or on whose behalf such interest has been received, and the amount of the interest so paid or received, or, as the case may require,

(b) the name and address of the person on whose behalf such security was purchased and the amount of such security.

Securities of certain State-owned companies.

[FA97 s144]

37.—(1) In this section, “securities” means any bonds, certificates of charge, debentures, debenture stock, notes, stock or other forms of security.

(2) The securities specified in the Table to this section shall be deemed to be securities issued under the authority of the Minister for Finance under section 36 , and that section shall apply accordingly.

(3) Notwithstanding anything in the Tax Acts, in computing for the purposes of assessment under Schedule D the amount of the profits or gains of a company (being a company referred to in the Table to this section) for any accounting period, the amount of the interest on any securities which, by direction of the Minister for Finance given under section 36 , as applied by subsection (2), is paid by the company without deduction of tax for such period shall be allowed as a deduction.

TABLE

Securities issued by ACC Bank plc.

Securities issued on or after the 13th day of July, 1954, by the Electricity Supply Board.

Securities issued on or after the 13th day of July, 1954, by Córas Iompair Éireann.

Securities issued on or after the 18th day of July, 1957, by Bord na Móna.

Securities issued on or after the 2nd day of July, 1964, by Aer Lingus, Teoranta.

Securities issued on or after the 2nd day of July, 1964, by Aer Rianta, Teoranta.

Securities issued on or after the 2nd day of July, 1964, by Aerlínte Éireann, Teoranta.

Securities issued on or after the 25th day of May, 1988, by Bord Telecom Éireann.

Securities issued on or after the 25th day of May, 1988, by Irish Telecommunications Investments plc.

Securities issued on or after the 24th day of May, 1989, by Radio Telefís Éireann.

Securities issued on or after the 24th day of May, 1989, by ICC Bank plc.

Securities issued on or after the 28th day of May, 1992, by Bord Gáis Éireann.

Certain State-guaranteed securities.

[FA70 s59(1), (2) and (3); FA97 s146(1) and Sch9 PtI par4(3)]

38.—(1) This section shall apply to any securities (other than securities specified in the Table to section 37 ) which are issued by a body corporate and in respect of which the payment of interest and the repayment of principal are guaranteed by a Minister of the Government under statutory authority.

(2) Any securities to which this section applies shall be deemed to be securities issued under the authority of the Minister for Finance under section 36 , and that section shall apply accordingly.

(3) Notwithstanding anything in the Tax Acts, in computing for the purposes of assessment under Case I of Schedule D the amount of the profits or gains of a body corporate by which the securities to which this section applies are issued, for any period for which accounts are made up, the amount of the interest on such securities which, by direction of the Minister for Finance under section 36 , as applied by this section, is paid by the body corporate without deduction of tax for such period shall be allowed as a deduction.

Securities of certain European bodies.

[FA73 s92(1) and 2)(a); FA89 s98(1)]

39.—(1) This section shall apply to any stock or other form of security issued in the State by the European Community, the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank.

(2) Any stock or other form of security to which this section applies shall be deemed to be a security issued under the authority of the Minister for Finance under section 36 , and that section shall apply accordingly.

Securities of International Bank for Reconstruction and Development.

[FA94 s161(1) and (2)(a)]

40.—(1) This section shall apply to any stock or other form of security issued by the International Bank for Reconstruction and Development.

(2) Any stock or other form of security to which this section applies shall be deemed to be a security issued under the authority of the Minister for Finance under section 36 , and that section shall apply accordingly.

Securities of designated bodies under the Securitisation (Proceeds of Certain Mortgages) Act, 1995 .

[FA96 s39(1) and (3)]

41.—Any stock or other form of security issued by a body designated under section 4 (1) of the Securitisation (Proceeds of Certain Mortgages) Act, 1995 , shall be deemed to be a security issued under the authority of the Minister for Finance under section 36 , and that section shall apply accordingly.

CHAPTER 3

Government and other public securities: exemptions from tax

Exemption of interest on savings certificates.

[ITA67 s463]

42.—The accumulated interest payable in respect of any savings certificate issued by the Minister for Finance, under which the purchaser, by virtue of an immediate payment of a specified sum, becomes entitled after a specified period to receive a larger sum consisting of the specified sum originally paid and accumulated interest on that specified sum, shall not be liable to tax so long as the amount of such certificates held by the person who is for the time being the holder of the certificate does not exceed the amount which that person is for the time being authorised to hold under regulations made by the Minister for Finance.

Certain securities issued by Minister for Finance.

[ITA67 s464; FA92 s42(1)(a); FA97 s45]

43.—(1) Any security which the Minister for Finance has power to issue for the purpose of raising any money or loan may be issued with a condition that neither the capital of nor the interest on such security shall be liable to tax so long as it is shown in the manner to be prescribed by the Minister for Finance that such security is in the beneficial ownership of a person who is not, or persons who are not, ordinarily resident in the State, and accordingly every security issued with such condition shall be exempt from tax.

(2) (a) Notwithstanding subsection (1), where a security has been issued with the condition referred to in that subsection and the security is held by or for a branch or agency through which a company carries on a trade or business in the State, which is such a trade or business, as the case may be, that, if the security had been issued without that condition, interest on, or other profits or gains from, the security accruing to the company would be chargeable to corporation tax under Case I or, as respects interest and other profits or gains accruing on or after the 21st day of April, 1997, from the security, Case IV of Schedule D, or in accordance with section 726 , then, such interest and profits or gains shall be charged to tax as if the security had been issued without such condition.

(b) Paragraph (a) shall apply as respects securities acquired by a company after the 29th day of January, 1992, whether they were issued before or after that date.

Exemption from corporation tax of certain securities issued by Minister for Finance.

[FA85 s69]

44.—(1) In this section—

“control” shall be construed in accordance with subsections (2) to (6) of section 432 , with the substitution in subsection (6) of that section for “5 or fewer participators” of “persons resident in a relevant territory”;

“foreign company” means a company which is—

(a) not resident in the State, and

(b) under the control of a person or persons resident in a relevant territory;

“qualifying company” means a company—

(a) (i) which is resident in the State and not resident elsewhere,

(ii) whose business consists wholly or mainly of—

(I) the carrying on of a relevant trade or relevant trades, or

(II) the holding of stocks, shares or securities of a company which exists wholly or mainly for the purpose of the carrying on of a relevant trade or relevant trades,

and

(iii) of which not less than 90 per cent of its issued share capital is held by a foreign company or foreign companies, or by a person or persons directly or indirectly controlled by a foreign company or foreign companies,

or

(b) which is a foreign company carrying on a relevant trade through a branch or agency in the State;

“relevant territory” means the United States of America or a territory with the government of which arrangements having the force of law by virtue of section 826 have been made;

“relevant trade” means a trade carried on wholly or mainly in the State, but does not include a trade consisting wholly or partly of—

(a) banking within the meaning of the Central Bank Act, 1971 ,

(b) assurance business within the meaning of section 3 of the Insurance Act, 1936 ,

(c) selling goods by retail, or

(d) dealing in securities,

but goods shall be deemed for the purposes of this definition not to be sold by retail if they are sold to—

(i) a person who carries on a trade of selling goods of the class to which the goods so sold to such person belong,

(ii) a person who uses goods of that class for the purposes of a trade carried on by such person, or

(iii) a person, other than an individual, who uses goods of that class for the purposes of an undertaking carried on by such person.

(2) Any security which the Minister for Finance has power to issue for the purpose of raising any money or loan may be issued with a condition that any interest arising on such security shall not be liable to corporation tax so long as the security is held continuously from the date of issue in the beneficial ownership of a qualifying company to which the security was issued.

Exemption of non-interest-bearing securities.

[ITA67 s465; FA74 s86 and Sch2 PtI; FA84 s28and FA90 s138]

45.—(1) The excess of the amount received on the redemption of a unit of non-interest-bearing securities issued by the Minister for Finance under section 4 of the Central Fund Act, 1965 , over the amount paid for the unit on its issue shall, except where the excess is to be taken into account in computing for the purposes of taxation the profits of a trade, be exempt from tax.

(2) Subsection (1) shall not apply to issues of securities to which subsection (3) applies made after the 25th day of January, 1984, unless a tender for any such securities was submitted on or before that date.

(3) The securities to which this subsection applies are—

(a) non-interest-bearing securities issued by the Minister for Finance at a discount, including Exchequer Bills and Exchequer Notes, and

(b) Agricultural Commodities Intervention Bills issued by the Minister for Agriculture and Food.

(4) (a) In this subsection, “owner”, in relation to securities, means at any time the person who would be entitled, if the securities were redeemed at that time by the issuer, to the proceeds of the redemption.

(b) Notwithstanding subsection (2), where the owner of a security to which subsection (3) applies—

(i) sells or otherwise disposes of the security, or

(ii) receives on redemption of the security an amount greater than the amount paid by such owner for that security either on its issue or otherwise,

then, any profit, gain or excess arising to the owner from such sale, disposal or receipt shall be exempt from tax where the owner is not ordinarily resident in the State; but this subsection shall not apply in respect of corporation tax chargeable on the income of an Irish branch or agency of a company not resident in the State.

Exemption of premiums on Investment Bonds.

[F(No.2)A68 s8; FA 74 s86 and Sch2 PtI]

46.—The excess of the amount received on the redemption of a unit of securities created and issued by the Minister for Finance under the Central Fund (Permanent Provisions) Act, 1965 , and known as Investment Bonds, over the amount which was paid for the unit on its issue shall, except where the excess is to be taken into account in computing for the purposes of taxation the profits of a trade, be exempt from tax.

Certain securities of ACC Bank plc.

[ITA67 s468(3)]

47.—Debentures, debenture stock and certificates of charge issued by ACC Bank plc, shall not be liable to tax so long as it is shown in the manner to be prescribed by the Minister for Finance that they are in the beneficial ownership of persons neither domiciled nor ordinarily resident in the State.

Exemption of premiums on certain securities.

[FA69 s63; FA70 s59(1) and (6); FA73 s92(1) and (2)(b); FA74 s86 and Sch2 PtI; FA84 s28; FA89 s98(1); FA90 s138; FA94 s161(1) and (2)(b); FA97 s34]

48.—(1) The securities to which this subsection applies are—

(a) securities created and issued by the Minister for Finance under the Central Fund (Permanent Provisions) Act, 1965 , or under any other statutory powers conferred on that Minister, and any stock, debenture, debenture stock, certificate of charge or other security issued with the approval of the Minister for Finance given under any Act of the Oireachtas and in respect of which the payment of interest and repayment of capital is guaranteed by the Minister for Finance under that Act, but excluding securities to which section 4 of the Central Fund Act, 1965 , or section 45 (1) or 46 applies,

(b) securities (other than securities specified in the Table to section 37 ) issued by a body corporate and in respect of which the payment of interest and the repayment of principal is guaranteed by a Minister of the Government under statutory authority,

(c) any stock or other form of security issued in the State by the European Community, the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank, and

(d) any stock or other form of security issued by the International Bank for Reconstruction and Development.

(2) The excess of the amount received on the redemption of a unit of securities to which subsection (1) applies over the amount paid for the unit on its issue shall, except where the excess is to be taken into account in computing for the purposes of taxation the profits of a trade, be exempt from tax.

(3) Subsection (2) shall not apply to issues of securities to which subsection (4) applies made after the 25th day of January, 1984, unless a tender for any such securities was submitted on or before that date.

(4) The securities to which this subsection applies are—

(a) non-interest-bearing securities issued by the Minister for Finance at a discount, including Exchequer Bills and Exchequer Notes,

(b) Agricultural Commodities Intervention Bills issued by the Minister for Agriculture and Food, and

(c) strips within the meaning of section 54 (10) of the Finance Act, 1970 (inserted by section 161 of the Finance Act, 1997 ).

(5) (a) In this subsection, “owner”, in relation to securities, means at any time the person who would be entitled, if the securities were redeemed at that time by the issuer, to the proceeds of the redemption.

(b) Notwithstanding subsection (3), where the owner of a security to which subsection (4) applies—

(i) sells or otherwise disposes of the security, or

(ii) receives on redemption of the security an amount greater than the amount paid by the owner for that security either on its issue or otherwise,

any profit, gain or excess arising to the owner from such sale, disposal or receipt shall be exempt from tax where the owner is not ordinarily resident in the State; but this subsection shall not apply in respect of corporation tax chargeable on the income of an Irish branch or agency of a company not resident in the State.

Exemption of certain securities.

[ITA67 s474; FA92 s42(1)(c); FA97 s47, s146(1) and Sch9 PtI par1 (32)]

49.—(1) This section shall apply to any stock or other security on which interest is payable without deduction of tax by virtue of a direction given by the Minister for Finance in pursuance of section 37 , 38 , 39 , 40 or 41 .

(2) Any stock or other security to which this section applies may be issued with either or both of the following conditions—

(a) that neither the capital of nor the interest on the stock or other security shall be liable to tax so long as it is shown in the manner directed by the Minister for Finance that the stock or other security is in the beneficial ownership of persons who are neither domiciled nor ordinarily resident in the State, and

(b) that the interest on the stock or other security shall not be liable to tax so long as it is shown in the manner directed by the Minister for Finance that the stock or other security is in the beneficial ownership of persons who, though domiciled in the State, are not ordinarily resident in the State,

and accordingly, as respects every such stock or other security so issued, exemption from tax shall be granted.

(3) (a) Notwithstanding subsection (2), where a security to which this section applies has been issued with either or both of the conditions referred to in that subsection and the security is held by or for a branch or agency through which a company carries on a trade or business in the State, which is such a trade or business, as the case may be, that, if the security had been issued without either of those conditions, interest on, or other profits or gains from, the security accruing to the company would be chargeable to corporation tax under Case I or, as respects interest and other profits or gains accruing on or after the 21st day of April, 1997, from the security, Case IV of Schedule D, or in accordance with section 726 , then, such interest and profits or gains shall be charged to tax as if the security had been issued without either of those conditions.

(b) Paragraph (a) shall apply as respects securities acquired by a company after the 15th day of May, 1992, whether they were issued before or after that date.

Securities of Irish local authorities issued abroad.

[ITA67 s470; FA92 s42(1)(b); FA97 s46]

50.—(1) In this section, “local authority” includes any public body recognised as a local authority for the purpose of this section by the Minister for the Environment and Local Government.

(2) Securities issued outside the State by a local authority in the State for the purpose of raising any money which the local authority is authorised to borrow, if issued under the authority of the Minister for Finance, shall not be liable to tax, except—

(a) where they are held by persons domiciled in the State or ordinarily resident in the State, or

(b) as respects securities acquired by a company after the 15th day of May, 1992, whether they were issued before or after that date, where they are held by or for a branch or agency through which a company carries on a trade or business in the State which is such a trade or business, as the case may be, that, if this section had not been enacted, interest on, or other profits or gains from, the securities accruing to the company would be chargeable to corporation tax under Case I or, as respects interest and other profits or gains accruing on or after the 21st day of April, 1997, from the securities. Case IV of Schedule D, or in accordance with section 726 .

CHAPTER 4

Miscellaneous provisions

Funding bonds issued in respect of interest on certain debts.

[ITA67 s475; CTA76 s140(1) and Sch2 PtI par 26]

51.—(1) In this section, “funding bonds” includes all bonds, stocks, shares, securities and certificates of indebtedness.

(2) This section shall apply to all debts owing by any government, public authority or public institution whatever or wherever and to all debts owing by any body corporate whatever or wherever.

(3) Where any funding bonds are issued to a creditor in respect of any liability to pay interest on a debt to which this section applies, the issue of those bonds shall be treated for the purposes of the Tax Acts as if it were the payment of an amount of the interest equal to the value of the bonds at the time of the issue of the bonds, and the redemption of the bonds shall not be treated for any of the purposes of the Tax Acts as payment of the interest or any part of the interest.

PART 4

Principal Provisions Relating to the Schedule D Charge

CHAPTER 1

Supplementary charging provisions

Persons chargeable.