Finance Act, 1997

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

44.—(1) In this section—

“chargeable period” means a year of assessment or an accounting period, as the case may be;

“controlling director”, in relation to a company, means a director of the company who has control of it (construing control in accordance with section 102 of the Corporation Tax Act, 1976 );

“director”, in relation to a company, has the meaning given by section 119(1) of the Income Tax Act, 1967 , and includes any person falling within section 103(5) of the Corporation Tax Act, 1976 ;

“group” has the meaning which would be given by section 129 of the Corporation Tax Act, 1976 , if in that section references to residence in the State were omitted and for references to “75 per cent. subsidiaries” there were substituted references to “51 per cent. subsidiaries”, and references to a company being a member of a group shall be construed accordingly;

“specified period”, in relation to a chargeable period, means the period beginning with the specified return date for the chargeable period (within the meaning of section 9 of the Finance Act, 1988 ) and ending 3 years after the time when a return under section 10 of the Finance Act, 1988 , for the chargeable period is delivered to the appropriate inspector (within the meaning of the said section 9);

“tax” means corporation tax or capital gains tax, as the case may be.

(2) This section applies at any time on or after the 21st day of April, 1997, where tax payable (being tax which, but for section 42 or 43 , would not be payable) by a company (hereafter in this section referred to as the “taxpayer company”) for a chargeable period (hereafter in this section referred to as the “chargeable period concerned”) is not paid within 6 months after the date on or before which the tax is due and payable.

(3) The Revenue Commissioners may, at any time before the end of the specified period in relation to the chargeable period concerned, serve on any person to whom subsection (4) applies a notice—

(a) stating the amount which remains unpaid of the tax payable by the taxpayer company for the chargeable period concerned and the date on or before which the tax became due and payable, and

(b) requiring that person to pay that amount within 30 days of the service of the notice.

(4) (a) This subsection applies to any person being—

(i) a company which is, or during the period of 12 months ending with the time when the gain accrued, was a member of the same group as the taxpayer company, and

(ii) a person who is, or during that period was, a controlling director of the taxpayer company or of a company which has, or within that period had, control over the taxpayer company.

(b) This subsection shall have effect in any case where the gain accrued before the 21st day of April, 1998, with the substitution in paragraph (a) (i) of “beginning with the 21st day of April, 1997, and” for “of 12 months”.

(5) Any amount which a person is required to pay by a notice under this section may be recovered from the person as if it were tax due by the said person, and such person may recover any such amount paid on foot of a notice under this section from the taxpayer company.

(6) A payment in pursuance of a notice under this section shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.