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Amendment of Chapter 6 (certain foreign life policies — taxation and returns) of Part 26 of Principal Act.
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49.— (1) Chapter 6 of Part 26 of the Principal Act is amended—
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(a) in section 730H(1)—
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(i) by inserting the following after the definition of “chargeable period”:
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“ ‘deemed disposal’ means a disposal of the type provided for in section 730K(6);”,
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and
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(ii) by inserting the following after the definition of “offshore state”:
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“ ‘relevant event’ means the ending of a relevant period, where
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‘relevant period’ in relation to a foreign life policy means a period of 8 years beginning with the inception of the policy and each subsequent period of 8 years beginning immediately after the preceding relevant period; but where—
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(a) premiums under the terms of the policy are paid annually or at more frequent intervals, and
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(b) the total amount of such premiums does not exceed €3,000 per annum,
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then this definition shall apply as if any reference to 8 years were a reference to 12 years;”,
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and
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(b) in section 730K—
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(i) in subsection (3)—
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(I) by renumbering the existing provision as paragraph (a), and
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(II) by inserting the following after paragraph (a):
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“(b) Where in respect of a foreign life policy—
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(i) a gain on a disposal is treated as nil in accordance with paragraph (a),
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(ii) that disposal is not a deemed disposal, and
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(iii) a person was chargeable to tax in respect of an earlier deemed disposal of the policy,
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then the provisions of section 865 (apart from subsection (4)) shall apply and the inspector may make such repayment or set-off as is necessary for securing that the aggregate of tax payable in respect of the policy under this section does not exceed the tax that would have been so payable in respect of the policy if subsection (6) had not been enacted.”,
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and
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(ii) by inserting the following after subsection (5):
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“(6) Where a person has a foreign life policy and a relevant event occurs in respect of that policy, then the person shall be deemed for the purposes of this section to have disposed of the whole of the policy immediately before the time of that relevant event and immediately to have reacquired it at its market value at that time.”.
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(2) This section applies as respects any relevant event (within the meaning of section 730H(1) of the Principal Act) occurring on or after the passing of this Act in respect of a foreign life policy (within the meaning of section 730H(1) of the Principal Act) taken out on or after 1 January 2001.
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