Finance Act, 1991

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Amendment of section 18 (taxation of collective investment undertakings) of Finance Act, 1989.

19.—(1) Section 18 of the Finance Act, 1989 , is hereby amended in subsection (1)—

(a) by the substitution for the definition of “collective investment undertaking” of the following:

“‘collective investment undertaking’ means—

(a) a unit trust scheme which is, or is deemed to be, an authorised unit trust scheme within the meaning of the Unit Trusts Act, 1990 , and which has not had its authorisation under that Act revoked,

(b) any other undertaking which is an undertaking for collective investment in transferable securities within the meaning of the relevant Regulations, being an undertaking which holds an authorisation issued pursuant to the relevant Regulations and that authorisation has not been revoked, and

(c) any authorised investment company within the meaning of Part XIII of the Companies Act, 1990 , which—

(i) has not had its authorisation under that Part of the said Act revoked, and

(ii) has been designated in that authorisation as an investment company which may raise capital by promoting the sale of its shares to the public and has not ceased to be so designated;”,

and

(b) by the addition to the definition of “specified collective investment undertaking”, after paragraph (b) of that definition, of the following:

“and shall include any company limited by shares or guarantee which—

(c) is wholly owned by such a collective investment undertaking or its trustees, if any, for the benefit of the holders of units in that undertaking,

(d) is so owned solely for the purpose of limiting the liability of that undertaking or its trustees, as the case may be, in respect of futures contracts, options contracts or other financial instruments with similar risk characteristics, by enabling it or its trustees, as the case may be, to invest or deal in such instruments through the said company, and

(e) would, if references to an undertaking in paragraph (a) were to be construed as including references to a company limited by shares or guarantee, satisfy the condition set out in paragraph (a);”,

and the said definition, as so amended, is set out in the Table to this section.

(2) References to a collective investment undertaking in section 18 (as amended by this section) of the Finance Act, 1989 , apart from such references in the definition of a specified collective investment undertaking in subsection (1) of that section (as so amended), shall include references to a company limited by shares or guarantee which is a specified collective investment undertaking within the meaning of that section (as so amended).

(3) (a) Subject to paragraph (b), subsection (1) (a) shall be deemed to have effect as on and from the 26th day of December, 1990.

(b) The definition of “collective investment undertaking”, as inserted by this section, in section 18 of the Finance Act, 1989 , shall be construed as if until the 1st day of February, 1991, that definition did not include paragraph (c) thereof and, accordingly, that paragraph shall be deemed to have effect as on and from that day.

(c) Subsections (1) (b) and (2) shall be deemed to have effect as on and from the 1st day of April, 1991.

TABLE

“specified collective investment undertaking” means a collective investment undertaking—

(a) most of the business of which, to the extent that it is carried on in the State—

(i) (I) is carried on in the Area by the undertaking or by a qualifying management company of the undertaking or by the undertaking and the qualifying management company of the undertaking, or

(II) is not so carried on in the Area but—

(A) is so carried on in the State,

(B) would be so carried on in the Area but for circumstances outside the control of the person or persons carrying on the business, and

(C) is so carried on in the Area when the aforementioned circumstances cease to exist,

or

(ii) is carried on in the airport by the undertaking or by a qualifying management company of the undertaking or by the undertaking and the qualifying management company of the undertaking,

and

(b) save to the extent that such units are held by the undertaking itself or by the qualifying management company of the undertaking, all the holders of units in the undertaking are persons resident outside the State;

and shall include any company limited by shares or guarantee which—

(c) is wholly owned by such a collective investment undertaking or its trustees, if any, for the benefit of the holders of units in that undertaking,

(d) is so owned solely for the purposes of limiting the liability of that undertaking or its trustees, as the case may be, in respect of futures contracts, options contracts or other financial instruments with similar risk characteristics, by enabling it or its trustees, as the case may be, to invest or deal in such instruments through the said company, and

(e) would, if references to an undertaking in paragraph (a) were to be construed as including references to a company limited by shares or guarantee, satisfy the condition set out in paragraph (a);