Finance Act, 1992
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Credit for tax. |
69.—(1) Where, on or after the 1st day of January, 1992— | |
(a) a company which is resident in the State transfers the whole or part of a trade which, immediately before the time of the transfer, it carried on in a Member State, other than the State, through a branch or agency to a company which is not resident in the State, | ||
(b) the transfer includes the whole of the assets of the transferring company used for the purposes of the trade or the part of the trade or the whole of those assets other than cash, and | ||
(c) the consideration for the transfer consists wholly or partly of the issue to the transferring company of securities in the receiving company, | ||
then, tax specified in a relevant certificate given by the tax authorities of the Member State in which the trade was so carried on shall be treated, for the purposes of Part XXII of the Income Tax Act, 1967 , as tax— | ||
(i) payable under the law of that Member State, and | ||
(ii) in respect of which credit may be allowed under a bilateral agreement. | ||
(2) For the purposes of this section— | ||
“law of the Member State which has the effect of deferring a charge to tax on a gain” means any law of the Member State concerned which provides— | ||
(a) that the gain accruing to the transferring company on the disposal of the assets in the course of the transfer is to be treated as not accruing until the disposal of the assets by the receiving company, or | ||
(b) that the receiving company is to be treated as having acquired the assets for a consideration of such amount as would secure that, for the purposes of charging the gain on the disposal to tax in that Member State, neither a gain nor a loss would accrue to the transferring company on the transfer and the receiving company is to be treated as if the acquisition of the assets by the transferring company had been its acquisition of them, or | ||
(c) such other deferral of a charge to tax as corresponds to paragraph (a) or (b); | ||
“relevant certificate given by the tax authorities of a Member State” means a certificate so given and which states— | ||
(a) whether gains accruing to the transferring company on the transfer would have been chargeable to tax under the law of the Member State but for— | ||
(i) the Directive, or | ||
(ii) any provision of the law of the Member State which has the effect of deferring a charge to tax on a gain in the case of such a transfer, | ||
(b) if the said gains accruing would have been so chargeable, the amount of tax which would have been payable under the said law if, so far as is permitted under that law, any losses arising on the transfer are set against any gains so arising and any deductions and reliefs available to the transferring company under the said law other than the provisions mentioned in paragraph (a), had been claimed. |