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Amendment of section 958 (date for payment of tax) of Principal Act.
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47.— (1) Section 958 of the Principal Act is amended—
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(a) in subsection (1)(a) in the definition of “relevant limit” by substituting “€150,000” for “€50,000”,
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(b) in subsection (2B) by inserting the following after paragraph (b):
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“(c) Where in relation to a chargeable period which is an accounting period of a company—
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(i) the tax payable by a chargeable person (being a company) for the chargeable period does not exceed the relevant limit, and
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(ii) the chargeable period commenced on the company coming within the charge to corporation tax,
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then the preliminary tax appropriate to the chargeable period shall be taken to be nil and subsections (4C) and (4E) shall not apply.”,
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(c) in subsection (4C)—
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(i) by substituting “Subject to subsections (2B)(c), (4E) and (11)” for “Subject to subsection (4E)”, and
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(ii) in paragraph (b)(ii) by inserting “or is not a company with a preliminary tax liability of nil by virtue of subsection (2B)(c),” after “accounting period,”,
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and
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(d) by inserting the following after subsection (10):
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“(11) (a) In this subsection—
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‘ balance ’ means the amount represented by the formula A — B, where—
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A is the amount of preliminary tax paid in accordance with subsection (2B) by the surrendering company for the relevant period, and
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B is 90 per cent of the tax payable by the surrendering company for that relevant period;
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‘ relevant balance ’ means that part of a balance that is specified in a notice given in accordance with paragraph (c).
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(b) This subsection applies where—
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(i) a chargeable person being a company (in this subsection referred to as the ‘surrendering company’) which is a member of a group pays an amount of preliminary tax for a chargeable period (in this subsection referred to as the ‘relevant period’) in accordance with subsection (2B), being an amount which exceeds 90 per cent of the tax payable by that surrendering company for the relevant period,
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(ii) another chargeable person being a company (in this subsection referred to as the ‘claimant company’) which is a member of the group pays an amount of preliminary tax for a chargeable period in accordance with subsection (2B), being an amount which is less than 90 per cent of the tax payable by that claimant company for the chargeable period,
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(iii) the chargeable period referred to in subparagraph (ii) coincides with the relevant period, and
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(iv) the claimant company is not a small company in relation to the relevant period.
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(c) Where this subsection applies the 2 companies may, at any time on or before the specified return date for the chargeable period of the surrendering company, jointly give notice to the Collector-General in such form as the Revenue Commissioners may require that paragraph (d) is to have effect in relation to the relevant balance specified in the notice.
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(d) Where this paragraph has effect in relation to any relevant balance—
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(i) an additional amount of preliminary tax equal to the relevant balance shall be deemed for the purposes of subsection (4C)(b)(ii) to have been paid by the claimant company on the due date for the payment of preliminary tax of that company for the relevant period if 100 per cent of the tax payable by the claimant company for the relevant period, disregarding this subparagraph, is paid on or before the specified return date for the relevant period, and
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(ii) the surrendering company shall for the purposes of this subsection be treated as having surrendered the relevant balance to the claimant company and that relevant balance shall not be available for use by any other company under this subsection.
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(e) A payment for a relevant balance shall not—
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(i) be taken into account in computing profits or losses of either company for corporation tax purposes, and
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(ii) be regarded as a distribution or a charge on income for any of the purposes of the Corporation Tax Acts,
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and, in this paragraph, ‘payment for a relevant balance’ means a payment made by the claimant company to the surrendering company in pursuance of an agreement between them as respects an amount surrendered in accordance with this subsection, being a payment not exceeding that amount.
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(f) (i) This subsection shall not affect the liability to pay corporation tax of any company to which the subsection relates.
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(ii) Where this subsection applies, the amount on which, but for this subsection, the claimant company is liable to pay interest in accordance with section 1080 shall be reduced by any relevant balance deemed to have been paid by that company in accordance with paragraph (d)(i).
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(g) For the purposes of this subsection, 2 companies are members of the same group if and only if they would be such members for the purposes of section 411.”.
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(2) (a) Paragraphs (a), (b) and (c) have effect as respects accounting periods in respect of which preliminary tax is payable after 6 December 2006.
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(b) Paragraph (d) has effect for accounting periods ending on or after 1 February 2007.
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