Finance Act 2014

Amendment of section 268 of Principal Act (meaning of “industrial building or structure”)

33. (1) Section 268 of the Principal Act is amended by inserting the following after subsection (5):

“(5A) Notwithstanding paragraph (n) of subsection (1), expenditure incurred by a person on the construction of a building or structure to which that paragraph applies, shall not be treated as expenditure on an industrial building or structure for the purposes of this Part unless—

(a) the building or structure is situated in an area specified in the National Regional Aid Map for the State in relation to the period 1 July 2014 to 31 December 2020, approved under Commission Decision No. N3153/2014 of 21 May 2014 6 , and

(b) the expenditure satisfies all of the relevant conditions set out in the European Commission Guidelines on regional state aid for 2014 - 2020, adopted on 19 June 2013 7 , and

(c) the following information has been provided to the Revenue Commissioners before the first claim for a writing down allowance is made, in accordance with section 272, by the person who incurred expenditure on the construction of the building or structure:

(i) the name, address and tax reference number (within the meaning of section 477B(1)) of the person making the claim;

(ii) the address of the building or structure in respect of which the expenditure was incurred or deemed to have been incurred; and

(iii) details of the aggregate of the amount of all expenditure incurred or deemed to have been incurred by the person in respect of which the claim is to be made.

(5B) Notwithstanding any obligation to the contrary imposed on them by section 851A, the Revenue Commissioners may furnish to one or more persons such information as is referred to in subsection (5A)(c) where the Revenue Commissioners are satisfied that doing so is reasonably related to achieving the following objective.

(5C) The objective mentioned in subsection (5B) is ensuring that any claim to relief in respect of expenditure which has been incurred or deemed to have been incurred on the construction of a building or structure to which subsection (1)(n) applies is in compliance with the Guidelines referred to in subsection (5A)(b).

(5D) The Minister for Finance shall, after consultation with the Revenue Commissioners, draw up—

(a) guidelines for determining whether, and to what extent, expenditure incurred by a person is to be treated as expenditure on the construction of a building or structure to which subsection (1)(n) applies, and

(b) guidelines (being guidelines that are expressed to be for the purpose, and which shall operate for the purpose, of enabling full regard to be had to the Guidelines referred in to subsection (5A)(b) as concerns the operation of that provision) whether the foregoing expenditure qualifies for a writing down allowance in accordance with the last-mentioned Guidelines, with particular regard (but not limited) to—

(i) any restrictions that may apply as respects aid to firms in difficulties,

(ii) the maximum level of aid intensity permitted for enterprises, and

(iii) any restrictions that may apply to aid aimed at a reduction of current expenses of an undertaking.

(5E) In determining a claim to a writing down allowance that is made in respect of expenditure on the construction of a building or structure, being expenditure claimed to be expenditure to which subsection (1)(n) applies, regard shall be had to whether each of the provisions that are set out in the guidelines drawn up under subsection (5D)(a) and (b) concerning the building or structure and the expenditure, respectively, has been satisfied.”.

(2) This section comes into operation on such day as the Minister for Finance may by order appoint.

6OJ No. C251, 1.8.2014, p.1

7OJ No. C209, 23.7.2013, p.1