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807A.—(1) This section shall apply where—
(a) by virtue or in consequence of a transfer of assets, either alone or in conjunction with associated operations, income becomes payable to a person who is resident or domiciled out of the State, and
(b) an individual who is resident or ordinarily resident in the State and who is not liable to tax under section 806 by reference to the transfer, receives a benefit provided out of assets which are available for the purpose by virtue or in consequence of the transfer or of any associated operations.
(2) Subject to the provisions of this section, the amount or value of any such benefit as is mentioned in subsection (1), if not otherwise chargeable to income tax in the hands of the recipient, shall—
(a) to the extent to which it falls within the amount of relevant income of years of assessment up to and including the year of assessment in which the benefit is received, be treated for all the purposes of the Income Tax Acts as the income of the individual for that year of assessment,
(b) to the extent to which it is not by virtue of this subsection treated as the income of the individual for that year of assessment and falls within the amount of relevant income of the next following year of assessment, be treated for those purposes as the individual's income for the next following year of assessment,
and so on for subsequent years of assessment, taking the reference in paragraph (b) to the year of assessment mentioned in paragraph (a) as a reference to that year of assessment and any other year of assessment before the subsequent year of assessment in question.
(3) Subject to subsection (8), the relevant income of a year of assessment, in relation to an individual, is any income which arises in that year of assessment to a person resident or domiciled out of the State and which by virtue or in consequence of the transfer or associated operations referred to in subsection (1) can directly or indirectly be used for providing a benefit for the individual or for enabling a benefit to be provided for the individual.
(4) Income tax chargeable by virtue of this section shall be charged under Case IV of Schedule D.
(5) An individual who is domiciled out of the State shall not, in respect of any benefit not received in the State, be chargeable to tax under this section by reference to relevant income which is such that, if the individual had received it, the individual would not, by reason of the individual being so domiciled, have been chargeable to income tax in respect of it, and section 72 shall apply for the purposes of this subsection as it would apply for the purposes of section 71 (3) if the benefit were income arising from securities and possessions in any place outside the State.
(6) Where—
(a) the whole or part of the benefit received by an individual in a year of assessment is a capital payment within the meaning of section 579A or 579F(2) (by virtue of not falling within the amount of relevant income referred to in subsection (2)(a)), and
(b) chargeable gains are by reason of that payment treated under either section 579A or 579F(2) as accruing to the individual in that or a subsequent year of assessment,
subsection (2)(b) shall apply in relation to any year of assessment (in this subsection referred to as ‘a year of charge’) after one in which chargeable gains have been so treated as accruing to the individual, as if a part of the amount or value of the benefit corresponding to the amount of those gains had been treated under that subsection as income of the individual for a year of assessment before the year of charge.
(7) Subsections (8) and (9) of section 806 shall apply for the purposes of this section as they apply for the purposes of subsections (4) and (5) of that section.
(8) This section shall apply irrespective of when the transfer or associated operations referred to in subsection (1) took place, but shall apply only to relevant income arising on or after the 11th day of February, 1999.”,
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