{"id":11014,"date":"2022-04-18T12:21:12","date_gmt":"2022-04-18T12:21:12","guid":{"rendered":"http:\/\/legalblog.ie\/?p=11014"},"modified":"2024-04-07T17:09:01","modified_gmt":"2024-04-07T17:09:01","slug":"dividends","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/dividends\/","title":{"rendered":"Dividends"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/dividends\/#Dividend_Income\" title=\"Dividend Income\">Dividend Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/dividends\/#Company_Recipients\" title=\"Company Recipients\">Company Recipients<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/dividends\/#Distributions\" title=\"Distributions\">Distributions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/dividends\/#Capital_Transactions_as_Income\" title=\"Capital Transactions as Income\">Capital Transactions as Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/dividends\/#Anti-Avoidance\" title=\"Anti-Avoidance\">Anti-Avoidance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/dividends\/#Group\" title=\"Group\">Group<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/dividends\/#Loans_in_the_nature_of_shares\" title=\"Loans in the nature of shares\">Loans in the nature of shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/dividends\/#EU_Companies\" title=\"EU Companies\">EU Companies<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#TAXES_CONSOLIDATION_ACT\" title=\"TAXES CONSOLIDATION ACT\">TAXES CONSOLIDATION ACT<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Company_Distributions_Tax_Credits_Franked_Investment_Income_and_Advance_Corporation_Tax_ss_129-186\" title=\"Company Distributions, Tax Credits, Franked Investment Income and Advance Corporation Tax (ss. 129-186)\">Company Distributions, Tax Credits, Franked Investment Income and Advance Corporation Tax (ss. 129-186)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Irish_resident_company_distributions_not_generally_chargeable_to_corporation_tax\" title=\"Irish resident company distributions not generally chargeable to corporation tax.\">Irish resident company distributions not generally chargeable to corporation tax.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Dividends_paid_out_of_foreign_profits\" title=\"Dividends paid out of foreign profits.\">Dividends paid out of foreign profits.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Meaning_of_distribution_ss_130-135\" title=\"Meaning of distribution (ss. 130-135)\">Meaning of distribution (ss. 130-135)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Matters_to_be_treated_as_distributions\" title=\"Matters to be treated as distributions.\">Matters to be treated as distributions.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Matters_to_be_treated_or_not_treated_as_repayments_of_share_capital\" title=\"Matters to be treated or not treated as repayments of share capital.\">Matters to be treated or not treated as repayments of share capital.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Limitation_on_meaning_of_%E2%80%9Cdistribution%E2%80%9D_%E2%80%93_general\" title=\"Limitation on meaning of &#8220;distribution&#8221; &#8211; general.\">Limitation on meaning of &#8220;distribution&#8221; &#8211; general.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Limitation_on_meaning_of_%E2%80%9Cdistribution%E2%80%9D_in_relation_to_certain_payments_made_in_respect_of_%E2%80%9Cforeign_source%E2%80%9D_finance\" title=\"Limitation on meaning of &#8220;distribution&#8221; in relation to certain payments made in respect of &#8220;foreign source&#8221; finance.\">Limitation on meaning of &#8220;distribution&#8221; in relation to certain payments made in respect of &#8220;foreign source&#8221; finance.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Distributions_supplemental\" title=\"Distributions: supplemental.\">Distributions: supplemental.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Distributions_and_tax_credits_%E2%80%93_general_ss_136-139\" title=\"Distributions and tax credits &#8211; general (ss. 136-139)\">Distributions and tax credits &#8211; general (ss. 136-139)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Treatment_of_dividends_on_certain_preference_shares\" title=\"Treatment of dividends on certain preference shares.\">Treatment of dividends on certain preference shares.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Chapter_4_Distributions_out_of_certain_exempt_profits_or_gains_or_out_of_certain_relieved_income_ss_140-146\" title=\"Chapter 4 Distributions out of certain exempt profits or gains or out of certain relieved income (ss. 140-146)\">Chapter 4 Distributions out of certain exempt profits or gains or out of certain relieved income (ss. 140-146)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Distributions_out_of_profits_or_gains_from_stallion_fees_stud_greyhound_services_fees_and_occupation_of_certain_woodlands\" title=\"Distributions out of profits or gains from stallion fees, stud greyhound services fees and occupation of certain woodlands.\">Distributions out of profits or gains from stallion fees, stud greyhound services fees and occupation of certain woodlands.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Distributions_out_of_income_from_patent_royalties\" title=\"Distributions out of income from patent royalties.\">Distributions out of income from patent royalties.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Distributions_out_of_profits_of_certain_mines\" title=\"Distributions out of profits of certain mines.\">Distributions out of profits of certain mines.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Distributions_out_of_profits_from_coal_gypsum_and_anhydrite_mining_operations\" title=\"Distributions out of profits from coal, gypsum and anhydrite mining operations.\">Distributions out of profits from coal, gypsum and anhydrite mining operations.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Distributions_out_of_profits_from_trading_within_Shannon_Airport\" title=\"Distributions out of profits from trading within Shannon Airport.\">Distributions out of profits from trading within Shannon Airport.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Explanation_of_tax_credit_to_be_annexed_to_interest_and_dividend_warrants\" title=\"Explanation of tax credit to be annexed to interest and dividend warrants.\">Explanation of tax credit to be annexed to interest and dividend warrants.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Distributions_to_certain_non-residents\" title=\"Distributions to certain non-residents.\">Distributions to certain non-residents.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Attribution_of_distributions_to_accounting_periods\" title=\"Attribution of distributions to accounting periods.\">Attribution of distributions to accounting periods.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Restriction_of_certain_reliefs_in_respect_of_distributions_out_of_certain_exempt_or_relieved_profits\" title=\"Restriction of certain reliefs in respect of distributions out of certain exempt or relieved profits.\">Restriction of certain reliefs in respect of distributions out of certain exempt or relieved profits.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Franked_investment_income_ss_156-158\" title=\"Franked investment income (ss. 156-158)\">Franked investment income (ss. 156-158)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Franked_investment_income_and_franked_payments\" title=\"Franked investment income and franked payments.\">Franked investment income and franked payments.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Schedule_2A_Dividend_withholding_tax\" title=\"Schedule 2A Dividend withholding tax\">Schedule 2A Dividend withholding tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Schedule_2B_Investment_Undertakings_Declarations\" title=\"Schedule 2B Investment Undertakings: Declarations\">Schedule 2B Investment Undertakings: Declarations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/legalblog.ie\/dividends\/2\/#Schedule_2C_Irish_Real_Estate_Funds_Declarations\" title=\"Schedule 2C Irish Real Estate Funds: Declarations\">Schedule 2C Irish Real Estate Funds: Declarations<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Dividend_Income\"><\/span>Dividend Income<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A dividend is usually declared by the directors and confirmed by the shareholders. Under companies law, it may only be declared out of earned profits. It is not deductible for tax as it is a distribution of profit out of the company to the shareholders.<\/p>\n<p>Generally companies must withhold dividend withholding tax on dividends paid at the rate of 25%. A return of dividends withholding tax must be made to Revenue monthly where applicable.\u00a0Finance Act 2019 increased the rate of dividend withholding tax from the standard rate of income tax (20%) to a rate of 25% and increases the rate specified in section 153 in a similar manner.<\/p>\n<p>An Irish resident\u00a0 shareholder who receives a dividend is liable to income tax. This is payable as part of his or her annual tax liability and is included in \u00a0the preliminary tax and file and tax payment obligations.<\/p>\n<p>The dividend withholding tax is a credit towards the final liability. Depending on the taxpayer&#8217;s marginal rate and the impact of levies the may be an effective tax rate of over 50% on the dividend received.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Company_Recipients\"><\/span>Company Recipients<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Where an Irish resident company receives a distribution from another Irish resident company, no dividend withholding tax or tax liability arises. In effect, tax is only charged once there is payment to a personal shareholder.<\/p>\n<p>Apart from tax on dividends, there is a surcharge on dividends\/distributions and other passive income which is not distributed to personal shareholders within 18 months of the tax period. See the chapter on close companies.<\/p>\n<p>Anti-avoidance provisions re-characterise interest as a distribution in certain circumstances. There is\u00a0 an exception from this treatment where the payment is to a company which is a resident of another EU Member State. Finance Act 2019 amends the provision to maintain this treatment for companies that are resident in the United Kingdom, in the event of a disorderly exit of the UK from the EU.<\/p>\n<p>Where a company transfers assets or liabilities to its members or vice versa, the amount by which the market value of the amount or benefit received by the member exceeds the amount or value of any new consideration given by the member, is treated as a distribution. However, such transfers between Irish resident companies are not treated as distributions where one company is a subsidiary of the other or both are subsidiaries of another company which is resident in a \u201crelevant Member State.\u201d Finance Act 2019 ensures that the current treatment continues to apply to Irish subsidiaries of UK-resident companies, in the event of a disorderly exit of the UK from the EU.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Distributions\"><\/span>Distributions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For tax purposes, dividends are defined more widely than the commonly understood meaning. Distributions comprise any transfer of value to shareholders and connected persons and are also taxed in the same manner as dividends. The term distribution \u00a0embraces dividends and a much wider range of benefits and transfers from the company to shareholders and others.<\/p>\n<p>A dividend is normally paid in cash. However, a distribution of assets may also be a dividend or distribution. There is a dividend to the extent of the book value and distribution to the further extent of the market value.<\/p>\n<p>There is a distribution to the extent that there is any inequality in the value of assets or liabilities transferred by a company to its shareholders or by the \u00a0shareholders to company. Accordingly, if the company over pays for an asset purchase from a shareholder there is a distribution to the extent of the overpayment. Equally there is a distribution to the extent of any \u00a0undervaluation on the sale or transfer of an asset by the company to the shareholder.<\/p>\n<p>The principle can also apply on transfers between connected companies which have substantially the same shareholders. The is a distribution to the extent of undervalue or overvalue.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Capital_Transactions_as_Income\"><\/span>Capital Transactions as Income<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A repayment of share capital\u00a0 is not a dividend to the extent of the original subscription of capital and share premium. Any excess over the nominal value of the capital and share premium paid is treated as a distribution.<\/p>\n<p>The repurchase of shares by a company to the extent of the original subscription of nominal capital and share\u00a0 premium is not treated as a distribution. Equally other mechanisms by which the share capital is redeemed and cancelled is not a dividend to the extent of the original subscription of nominal capital and share premium.<\/p>\n<p>When new consideration is received by the company, which is not directly or indirectly provided by the company, in return for what would otherwise be a distribution, then there is not a a distribution for tax purposes. There would be new consideration where shares are exchanged for existing shares with no adjustment in economic interest.<\/p>\n<p>A bonus share or stock dividend issue by the company to an existing shareholder in proportion to its shares involving no payment is not a distribution. There is a nominal change only in the extent of the shareholders economic interests of the company. For the same reason, share capital paid out of the share premium account will not be a distribution where it is converting the account to capital.<\/p>\n<p>Where there is a bonus share by capitalisation of reserves (undistributed \u00a0income) and the same is redeemed the redemption is deemed \u00a0to be a distribution to the extent that it is not a redemption of the original shares or there is no new consideration.<\/p>\n<p>The same treatment applies when shares are redeemed, and bonus shares are issued by way of capitalisation of reserves thereby replacing the redeemed shares. The redemption is deemed to be distribution taxable as income. Certain limited exceptions apply.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Anti-Avoidance\"><\/span>Anti-Avoidance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There is a range of anti-avoidance legislation which seeks to prevent arrangements in relation to share capital being treated artificially as capital rather than income transactions to take advantage of the lower capital gains tax rates.<\/p>\n<p>This is aimed in particular at arrangements between companies or collusion which seeks to restructure share capital so as to artificially deem there to be new consideration. There is deemed to be no new consideration on a share swap under certain conditions.<\/p>\n<p>Where arrangements exist between two companies to make distributions to each other\u2019s shareholders, the arrangements are looked through and treated as if there are done within a single company. Where a shareholder in a close company or persons connected with it enter arrangements with another close company by which it disposes of its shares or securities in the first company and the payment is made directly and indirectly from the assets of the first company what is received is treated as a distribution to the shareholder.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Group\"><\/span>Group<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The distribution and deemed distribution provisions does not apply where the companies are in a group. Generally, assets may be passed within the group on a tax neutral basis. However, where two companies are controlled by the same parties but are not part of a group the distribution principles apply to transfers that undervalue or overvalue between the companies.<\/p>\n<p>The transfer of non-cash assets between companies<\/p>\n<ul>\n<li>which are not under common control either before or as a result of the transfer<\/li>\n<li>\u00a0both resident in the state and are not owned by a non-resident company<\/li>\n<\/ul>\n<p>is not treated as distribution.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Loans_in_the_nature_of_shares\"><\/span>Loans in the nature of shares<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Loans whose rate of return varies with the financial\/trading results of the company are classified as giving rise to a distribution rather than interest. This does not apply to loan instruments \/securities which vary in simple way linked to repayment risk with reference to the company\u2019s trading results and which represents a reasonable commercial return.<\/p>\n<p>Where the recipient is a company subject to Irish corporation tax, the interest is treated as such and is not treated as distribution. This causes it to lose the exemption from corporation tax for dividend income received by an Irish resident company from an Irish resident company.<\/p>\n<p>There is a distribution where there is a \u00a0payment other than a dividend paid in a winding up, the cost of which is borne by the company concerned unless it is a pure repayment of capital, or it is in return for new consideration. This seeks to treat as income arrangements which is take the form of capital repayments but are in substance payments of income earned by the company.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"EU_Companies\"><\/span>EU Companies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Where securities are held by a non-resident 75% shareholding parent or fellow subsidiary 90% of which is owned by an Irish resident company, interest is subject to distribution treatment. A double taxation agreement may require the income from the security to be treated as a dividend depending on its wording.<\/p>\n<p>There are conditions under which a company paying interest on securities may opt to have the interest not treated as a dividend. It must be<\/p>\n<ul>\n<li>payable in the ordinary course of trade and deductible as trading expense<\/li>\n<li>be payable to accompany resident in a EU state other than Ireland or a tax treaty country.<\/li>\n<\/ul>\n<p>Interest paid to 75% parents and associated companies may be treated as distributions in the case of yearly interest. This, however, may require deduction of standard rate income tax on the interest.<\/p>\n<p>Finance Act 2019 amends the provision to maintain this treatment for companies that are resident in the United Kingdom, in the event of a disorderly exit of the UK from the EU.<\/p>\n<p>Where a company transfers assets or liabilities to its members or vice versa, the amount by which the market value of the amount or benefit received by the member exceeds the amount or value of any new consideration given by the member, is treated as a distribution. However, such transfers between Irish resident companies are not treated as distributions where one company is a subsidiary of the other or both are subsidiaries of another company which is resident in a \u201crelevant Member State.\u201d Finance Act 2019 ensures that the current treatment continues to apply to Irish subsidiaries of UK-resident companies in the event of a disorderly exit of the UK from the EU.<\/p>\n<p><!--nextpage--><\/p>\n<h2>TAXES CONSOLIDATION ACT<\/h2>\n<p>Part 6<\/p>\n<h4>Company Distributions, Tax Credits, Franked Investment Income and Advance Corporation Tax (ss. 129-186)<\/h4>\n<p>Chapter 1<\/p>\n<p>Taxation of company distributions (ss. 129-129A)<\/p>\n<p>129.<\/p>\n<h4>Irish resident company distributions not generally chargeable to corporation tax.<\/h4>\n<p>Except where otherwise provided by the Corporation Tax Acts, corporation tax shall not be chargeable on dividends and other distributions of a company resident in the State, nor shall any such dividends or distributions be taken into account in computing income for corporation tax.<\/p>\n<p>129A.<\/p>\n<h4>Dividends paid out of foreign profits.<\/h4>\n<p>(1)<\/p>\n<p>(a)In this section &#8216;profits&#8217;, in relation to a company for a period of account, means the amount of the profits after taxation as shown in the profit and loss account or income statement for that period as laid before the annual general meeting of the company.<\/p>\n<p>(b)For the purposes of this section &#8211;<\/p>\n<p>(i)any question whether a company is connected with another company shall be determined in accordance with section 10 (as it applies for the purposes of the Tax Acts) and subparagraph (ii),<\/p>\n<p>(ii)where a company is party to a scheme or arrangement, the main purpose, or one of the main purposes, of which is the avoidance of the whole or part of a distribution being treated as a taxable distribution, then the company shall be treated as connected with any other company which is a party to that scheme or arrangement.<\/p>\n<p>(c)For the purposes of subsection (5) &#8216;control&#8217; shall be construed in accordance with subsections (2) to (6) of section 432 as if in subsection (6) of that section for &#8216;5 or fewer participators&#8217; there were substituted &#8216;persons resident in the State&#8217;.<\/p>\n<p>(2)Where &#8211;<\/p>\n<p>(a)a company receives a distribution from another company (in this section referred to as the &#8216;paying company&#8217;) resident in the State with which it is connected, and<\/p>\n<p>(b)the paying company became resident in the State in the period &#8211;<\/p>\n<p>(i)beginning on the date &#8211;<\/p>\n<p>(I)10 years before the date the distribution was made, or<\/p>\n<p>(II)of passing of the Finance Act 2010,<\/p>\n<p>whichever is the later, and<\/p>\n<p>(ii)ending on the date the distribution is made,<\/p>\n<p>then, subject to subsection (5), section 129 shall not apply to such amount of the distribution as is paid out of profits arising before the paying company became resident in the State and that amount shall be treated as income chargeable to tax under Case IV of Schedule D.<\/p>\n<p>(3)<\/p>\n<p>(a)For the purposes of this section, where the amount of a distribution made by the paying company on or after the date (or the last such date if there was more than one date) it became resident in the State exceeds the distributable profits of the company for the period (in this subsection referred to as the &#8216;specified period&#8217;) &#8211;<\/p>\n<p>(i)ending on the last day of &#8211;<\/p>\n<p>(I)the accounting period of the company immediately preceding the accounting period in which the distribution is made, or<\/p>\n<p>(II)the accounting period in which the distribution is made, where the distribution is an interim dividend paid, in that accounting period, out of profits arising in that accounting period,<\/p>\n<p>(ii)ending on the last day of the accounting period of the company immediately preceding the accounting period in which the distribution is made,<\/p>\n<p>then the excess shall be treated as paid out of profits arising before the company became resident in the State.<\/p>\n<p>(b)For the purposes of this subsection &#8211;<\/p>\n<p>(i)the distributable profits of the paying company for a specified period shall, subject to subparagraph (ii), be taken to be the aggregate of the profits of the periods of account (in this subsection referred to as &#8216;corresponding periods&#8217;) which fall wholly or partly within the specified period, as reduced by the aggregate of so much of the amounts of any distributions made in the specified period as were amounts to which section 129 applied,<\/p>\n<p>(ii)where a corresponding period falls partly within a specified period, the amount to be included in the distributable profits for the specified period in respect of the profits of that corresponding period shall be the profits of that corresponding period reduced by applying the fraction &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the length of the period common to the specified period and the corresponding period, and<\/p>\n<p>Bis the length of the corresponding period.<\/p>\n<p>(4)Where, by virtue of subsection (2), section 129 does not apply to the whole or part of a distribution (such whole or part, as the case may be, in this section referred to as the &#8216;taxable distribution&#8217;) received by a company (in this subsection referred to as the &#8216;first-mentioned company&#8217;) from another company resident in the State then the first-mentioned company shall be entitled to reduce the corporation tax attributable to the taxable distribution by the amount of the credit for foreign tax that would have been applied, under the provisions of Schedule 24, in reducing the corporation tax chargeable in respect of a dividend of an amount equal to the taxable distribution received by the first-mentioned company from the other company on the day before the day (or the last such day where there was more than one) the other company became resident in the State.<\/p>\n<p>(5)Subsection (2) shall not apply where the paying company was at all times before the date it became resident in the State (or the last such date where there was more than one date) not controlled by persons resident in the State.<\/p>\n<p>Chapter 2<\/p>\n<h4>Meaning of distribution (ss. 130-135)<\/h4>\n<p>130.<\/p>\n<h4>Matters to be treated as distributions.<\/h4>\n<p>(1)The following provisions of this Chapter, together with sections 436, 436A and 437, and subsection (2)(b) of section 816, shall, subject to any express exceptions, apply with respect to the meaning in the Corporation Tax Acts of &#8220;distribution&#8221; and for determining the persons to whom certain distributions are to be treated as made; but references in the Corporation Tax Acts to distributions of a company shall not apply to distributions made in respect of share capital in a winding up.<\/p>\n<p>(2)In relation to any company, &#8220;distribution&#8221; means &#8211;<\/p>\n<p>(a)any dividend paid by the company, including a capital dividend;<\/p>\n<p>(b)any other distribution out of assets of the company (whether in cash or otherwise) in respect of shares in the company, except, subject to section 132, so much of the distribution, if any, as represents a repayment of capital on the shares or is, when it is made, equal in amount or value to any new consideration received by the company for the distribution;<\/p>\n<p>(c)any amount met out of assets of the company (whether in cash or otherwise) in respect of the redemption of any security issued by the company in respect of shares in, or securities of, the company otherwise than wholly for new consideration, or in the redemption of such part of any such security so issued as is not properly referable to new consideration;<\/p>\n<p>(d)any interest or other distribution out of assets of the company in respect of securities of the company (except so much, if any, of any such distribution as represents the principal thereby secured, and, without prejudice to section 135(9), for this purpose no amount shall be regarded as representing the principal secured by a security in so far as it exceeds any new consideration received by the company for the issue of the security), where the securities are &#8211;<\/p>\n<p>(i)securities issued as mentioned in paragraph (c), but excluding securities issued before the 27th day of November, 1975,<\/p>\n<p>(ii)securities convertible directly or indirectly into shares in the company or securities carrying any right to receive shares in or securities of the company, not being (in either case) securities quoted on a recognised stock exchange nor issued on terms which are reasonably comparable with the terms of issue of securities so quoted,<\/p>\n<p>(iii)securities under which &#8211;<\/p>\n<p>(I)the consideration given by the company for the use of the principal secured is to any extent dependent on the results of the company&#8217;s business or any part of the company&#8217;s business, or<\/p>\n<p>(II)the consideration so given represents more than a reasonable commercial return for the use of that principal; but this shall not operate so as to treat as a distribution so much of the interest or other distribution as represents a reasonable commercial return for the use of that principal,<\/p>\n<p>(iv)securities issued by the company and held by a company not resident in the State, where &#8211;<\/p>\n<p>(I)the company which issued the securities is a 75 per cent subsidiary of the other company,<\/p>\n<p>(II)both companies are 75 per cent subsidiaries of a third company which is not resident in the State, or<\/p>\n<p>(III)except where 90 per cent or more of the share capital of the company which issued the securities is directly owned by a company resident in the State, both the company which issued the securities and the company not resident in the State are 75 per cent subsidiaries of a third company which is resident in the State,<\/p>\n<p>or<\/p>\n<p>(v)securities connected with shares in the company, where &#8220;connected with&#8221; means that, in consequence of the nature of the rights attaching to the securities or shares, and in particular of any terms or conditions attaching to the right to transfer the shares or securities, it is necessary or advantageous for a person who has, or disposes of or acquires, any of the securities also to have, or to dispose of or acquire, a proportionate holding of the shares;<\/p>\n<p>(e)any amount required to be treated as a distribution by subsection (3) or by section 131;<\/p>\n<p>(f)any qualifying amount (within the meaning of subsection (2C)) paid to an individual who at the time that amount is paid &#8211;<\/p>\n<p>(i)is a beneficiary under the terms of a trust deed of an employee share ownership trust approved of by the Revenue Commissioners under Schedule 12 and for which approval has not been withdrawn and which trust deed contains provision for the transfer of securities to the trustees of a scheme approved of by the Revenue Commissioners under Schedule 11 and for which approval has not been withdrawn, and<\/p>\n<p>(ii)would be eligible to have securities appropriated to him or her, had such securities been available for appropriation, under the scheme referred to in subparagraph (i).<\/p>\n<p>(2A)For the purposes of subsection (2)(d)(iii)(I), the consideration given by the company for the use of the principal received shall not be treated as being to any extent dependent on the results of the company&#8217;s business or any part of the company&#8217;s business by reason only of the fact that the terms (however expressed) of the security provide &#8211;<\/p>\n<p>(a)for the consideration to be reduced in the event of the results improving, or<\/p>\n<p>(b)for the consideration to be increased in the event of the results deteriorating.<\/p>\n<p>(2B)Subsection (2)(d)(iv) shall not apply as respects interest, other than interest to which section 452 or 845A applies, paid to a company which is a resident of &#8211;<\/p>\n<p>(a)a Member State, other than the State, or<\/p>\n<p>(b)the United Kingdom,<\/p>\n<p>and, for the purposes of this subsection &#8211;<\/p>\n<p>(i)a company is a resident of a Member State if the company is by virtue of the law of that Member State resident for the purposes of tax (being any tax imposed in the Member State which corresponds to corporation tax in the State) in such Member State, and<\/p>\n<p>(ii)a company is a resident of the United Kingdom if the company is by virtue of the law of the United Kingdom resident for the purposes of tax (being any tax imposed in the United Kingdom which corresponds to corporation tax in the State) in the United Kingdom.<\/p>\n<p>(2C)Notwithstanding section 519(6) and paragraph 13(4) of Schedule 12, &#8216;qualifying amount&#8217; means an amount paid solely out of income consisting of dividends received in a chargeable period (within the meaning of section 321) in respect of securities (within the meaning of Schedule 12) held by the trustees of the employee share ownership trust referred to in subsection (2)(f)(i), but only to the extent that such income exceeds the aggregate of &#8211;<\/p>\n<p>(a)any sum or sums spent to meet expenses of the trust,<\/p>\n<p>(b)any interest paid on sums borrowed by the trust,<\/p>\n<p>(c)any sum or sums paid to the personal representatives of a deceased person who was a beneficiary under the terms of the trust deed,<\/p>\n<p>(d)any amount spent on the repayment of sums borrowed including any amount capable of being so spent, having regard to the conditions referred to in paragraph 11(2B)(d) or 11A(5)(d) of Schedule 12, and<\/p>\n<p>(e)any amount spent on the acquisition of securities (within the meaning of Schedule 12) including any amount capable, at any particular time, of being so spent on such securities at their market value (within the meaning of section 548) at that time,<\/p>\n<p>in the chargeable period.<\/p>\n<p>(3)<\/p>\n<p>(a)Where on a transfer of assets or liabilities by a company to its members or to a company by its members the amount or value of the benefit received by a member (taken according to its market value) exceeds the amount or value (so taken) of any new consideration given by the member, the company shall be treated as making a distribution to the member of an amount equal to the difference (in paragraph (b) referred to as &#8220;the relevant amount&#8221;).<\/p>\n<p>(b)Notwithstanding paragraph (a), where the company and the member receiving the benefit are both resident in the State and either the former is a subsidiary of the latter or both are subsidiaries of a third company, being a company which, by virtue of the law of a relevant Member State, is resident for the purposes of tax in such a Member State, the relevant amount shall not be treated as a distribution.<\/p>\n<p>(c)For the purposes of this subsection and subsection (4), &#8216;tax\u2019, in relation to a relevant Member State other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State.<\/p>\n<p>(d)For the purposes of this subsection and subsection (4) &#8211;<\/p>\n<p>&#8216;EEA Agreement&#8217; means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;<\/p>\n<p>&#8216;EEA State&#8217; means a state which is a contracting party to the EEA Agreement;<\/p>\n<p>&#8216;relevant Member State&#8217; means &#8211;<\/p>\n<p>(i)a Member State of the European Communities,<\/p>\n<p>(ii)not being such a Member State, an EEA State which is a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or<\/p>\n<p>(iii)the United Kingdom.<\/p>\n<p>(4)The question whether one company is a subsidiary of another company for the purpose of subsection (3) shall be determined as a question whether it is a 51 per cent subsidiary of that other company, except that that other company shall be treated as not being the owner of &#8211;<\/p>\n<p>(a)any share capital which it owns directly in a company, if a profit on a sale of the shares would be treated as a trading receipt of its trade,<\/p>\n<p>(b)any share capital which it owns indirectly and which is owned directly by a company for which a profit on the sale of the shares would be a trading receipt, or<\/p>\n<p>(c)any share capital which it owns directly or indirectly in a company, not being a company which, by virtue of the law of a relevant Member State, is resident for the purposes of tax in such a Member State.<\/p>\n<p>(5)<\/p>\n<p>(a)No transfer of assets (other than cash) or of liabilities between one company and another company shall constitute, or be treated as giving rise to, a distribution by virtue of subsection (2)(b) or (3) if they are companies &#8211;<\/p>\n<p>(i)both of which are resident in the State and neither of which is a 51 per cent subsidiary of a company not so resident, and<\/p>\n<p>(ii)which neither at the time of the transfer nor as a result of it are under common control.<\/p>\n<p>(b)For the purposes of this subsection, 2 companies shall be under common control if they are under the control of the same person or persons, and for this purpose &#8220;control&#8221; shall be construed in accordance with section 11.<\/p>\n<p>(c)Any amount which would be a distribution by virtue of subsection (3)(a) shall not constitute a distribution by virtue of subsection (2)(b).<\/p>\n<p>131. Bonus issues following repayment of share capital.<br \/>\n(1)In this section &#8211;<\/p>\n<p>&#8220;ordinary shares&#8221; means shares other than preference shares;<\/p>\n<p>&#8220;preference shares&#8221; means shares &#8211;<\/p>\n<p>(a)which do not carry any right to dividends other than dividends at a rate per cent of the nominal value of the shares which is fixed, and<\/p>\n<p>(b)which carry rights in respect of dividends and capital which are comparable with those general for fixed-dividend shares quoted on a stock exchange in the State;<\/p>\n<p>&#8220;new consideration not derived from ordinary shares&#8221; means new consideration other than consideration consisting of the surrender, transfer or cancellation of ordinary shares of the company or any other company or consisting of the variation of rights in ordinary shares of the company or any other company, and other than consideration derived from a repayment of share capital paid in respect of ordinary shares of the company or of any other company.<\/p>\n<p>(2)Where a company &#8211;<\/p>\n<p>(a)repays any share capital or has done so at any time on or after the 27th day of November, 1975, and<\/p>\n<p>(b)at or after the time of that repayment, issues as paid up, otherwise than by the receipt of new consideration, any share capital,<\/p>\n<p>the amount so paid up shall be treated as a distribution made in respect of the shares on which it is paid up, except in so far as that amount exceeds the amount or aggregate amount of share capital so repaid less any amounts previously so paid up and treated by virtue of this subsection as distributions.<\/p>\n<p>(3)Subsection (2) shall not apply where the repaid share capital consists of fully paid up preference shares &#8211;<\/p>\n<p>(a)if those shares existed as issued and fully paid preference shares on the 27th day of November, 1975, and throughout the period from that date until the repayment those shares continued to be fully paid preference shares, or<\/p>\n<p>(b)if those shares were issued after the 27th day of November, 1975, as fully paid preference shares wholly for new consideration not derived from ordinary shares and throughout the period from their issue until the repayment those shares continued to be fully paid preference shares.<\/p>\n<p>(4)Except in relation to a close company within the meaning of section 430, this section shall not apply if the issue of share capital mentioned in subsection (2)(b) &#8211;<\/p>\n<p>(a)is of share capital other than redeemable share capital, and<\/p>\n<p>(b)takes place more than 10 years after the repayment of share capital mentioned in subsection (2)(a).<\/p>\n<p>132.<\/p>\n<h4>Matters to be treated or not treated as repayments of share capital.<\/h4>\n<p>(1)In this section, &#8220;relevant distribution&#8221; means so much of any distribution made in respect of shares representing the relevant share capital as apart from subsection (2)(a) would be treated as a repayment of share capital, but by virtue of that subsection cannot be so treated.<\/p>\n<p>(2)<\/p>\n<p>(a)Where &#8211;<\/p>\n<p>(i)a company issues any share capital as paid up otherwise than by the receipt of new consideration, or has done so on or after the 27th day of November, 1975, and<\/p>\n<p>(ii)any amount so paid up is not to be treated as a distribution,<\/p>\n<p>then, for the purposes of sections 130 and 131, distributions made afterwards by the company in respect of shares representing that share capital shall not be treated as repayments of share capital, except to the extent to which those distributions, together with any relevant distributions previously so made, exceed the amounts so paid up (then or previously) on such shares after that date and not treated as distributions.<\/p>\n<p>(b)For the purposes of paragraph (a), all shares of the same class shall be treated as representing the same share capital, and where shares are issued in respect of other shares, or are directly or indirectly converted into or exchanged for other shares, all such shares shall be treated as representing the same share capital.<\/p>\n<p>(3)Where share capital is issued at a premium representing new consideration, the amount of the premium shall be treated as forming part of that share capital for the purpose of determining under this Chapter whether any distribution made in respect of shares representing the share capital is to be treated as a repayment of share capital; but this subsection shall not apply in relation to any part of the premium after that part has been applied in paying up share capital.<\/p>\n<p>(4)Subject to subsection (3), premiums paid on redemption of share capital shall not be treated as repayments of capital.<\/p>\n<p>(5)Except in relation to a close company within the meaning of section 430, subsection (2)(a) shall not prevent a distribution being treated as a repayment of share capital if it is made &#8211;<\/p>\n<p>(a)more than 10 years after the issue of share capital mentioned in subsection (2)(a)(i), and<\/p>\n<p>(b)in respect of share capital other than redeemable share capital.<\/p>\n<p>133.<\/p>\n<h4>Limitation on meaning of &#8220;distribution&#8221; &#8211; general.<\/h4>\n<p>(1)<\/p>\n<p>(a)In this section &#8211;<\/p>\n<p>&#8220;agricultural society&#8221; means a society &#8211;<\/p>\n<p>(i)in relation to which both the following conditions are satisfied:<\/p>\n<p>(I)the number of the society&#8217;s members is not less than 50, and<\/p>\n<p>(II)all or a majority of the society&#8217;s members are persons who are mainly engaged in and derive the principal part of their income from husbandry,<\/p>\n<p>or<\/p>\n<p>(ii)to which a certificate to which this subparagraph applies has been issued;<\/p>\n<p>&#8221;fishery society&#8221; means a society &#8211;<\/p>\n<p>(i)in relation to which both the following conditions are satisfied:<\/p>\n<p>(I)the number of the society&#8217;s members is not less than 20, and<\/p>\n<p>(II)all or a majority of the society&#8217;s members are persons who are mainly engaged in and derive the principal part of their income from fishing,<\/p>\n<p>or<\/p>\n<p>(ii)to which a certificate to which this subparagraph applies has been issued;<\/p>\n<p>&#8220;relevant principal&#8221; means an amount of money advanced to a borrower by a company which is within the charge to corporation tax and the ordinary trading activities of which include the lending of money, where &#8211;<\/p>\n<p>(i)the consideration given by the borrower for that amount is a relevant security, and<\/p>\n<p>(ii)interest or any other distribution is paid out of the assets of the borrower in respect of that security;<\/p>\n<p>&#8220;selling by wholesale&#8221; means selling goods of any class to a person who carries on a business of selling goods of that class or uses goods of that class for the purposes of a trade or undertaking carried on by the person;<\/p>\n<p>&#8220;specified trade&#8221; means, subject to paragraphs (b), (d) and (e), a trade which consists wholly or mainly of the manufacture of goods.<\/p>\n<p>(b)Where the borrower mentioned in subsection (5) is a 75 per cent subsidiary of &#8211;<\/p>\n<p>(i)an agricultural society, or<\/p>\n<p>(ii)a fishery society,<\/p>\n<p>&#8220;specified trade&#8221;, in that subsection, means a trade of the borrower which consists wholly or mainly of either or both of &#8211;<\/p>\n<p>(I)the manufacture of goods within the meaning of the definition of &#8220;specified trade&#8221; in paragraph (a), and<\/p>\n<p>(II)the selling by wholesale of &#8211;<\/p>\n<p>(A)where subparagraph (i) applies, agricultural products, or<\/p>\n<p>(B)where subparagraph (ii) applies, fish.<\/p>\n<p>(c)For the purposes of the definition of &#8220;specified trade&#8221; in paragraph (a) and of paragraph (b), a trade shall be regarded, as respects an accounting period, as consisting wholly or mainly of particular activities only if the total amount receivable by the borrower from sales made in the course of those activities in the accounting period is not less than 75 per cent of the total amount receivable by the borrower from all sales made in the course of the trade in that period.<\/p>\n<p>(d)A qualifying shipping trade (within the meaning of section 407) shall not be regarded as a specified trade for the purposes of this section.<\/p>\n<p>(da)A certificate to which subparagraph (ii) of the definition of &#8216;agricultural society&#8217; or subparagraph (ii) of the definition of &#8216;fishery society&#8217; in paragraph (a) applies is, as the case may be, a certificate given under &#8211;<\/p>\n<p>(i)paragraph (b) or (c) of section 443(16),<\/p>\n<p>(ii)paragraph (a) or (b) of section 70 (2) of the Finance Act 1963,<\/p>\n<p>(iii)paragraph (a) or (b) of section 220 (2) of the Income Tax Act 1967, or<\/p>\n<p>(iv)paragraph (a) or (b) of section 18 (2) of the Finance Act 1978,<\/p>\n<p>and not revoked.<\/p>\n<p>(e)[deleted]<\/p>\n<p>(2)Any interest or other distribution which &#8211;<\/p>\n<p>(a)is paid out of assets of a company (in this section referred to as &#8220;the borrower&#8221;) to another company within the charge to corporation tax, and<\/p>\n<p>(b)is so paid in respect of a security (in this section referred to as a &#8220;relevant security&#8221;) within subparagraph (ii), (iii) (I) or (v) of section 130(2)(d),<\/p>\n<p>shall not be a distribution for the purposes of the Corporation Tax Acts unless the application of this subsection is excluded by subsection (3), (4) or (5).<\/p>\n<p>(3)Subsection (2) shall not apply where the principal secured has been advanced by a company out of money subscribed for the share capital of the company and that share capital is beneficially owned directly or indirectly by a person or persons resident outside the State.<\/p>\n<p>(4)Subsection (2) shall not apply in a case where the consideration given by the borrower for the use of the principal secured represents more than a reasonable commercial return for the use of that principal; but, where this subsection applies, nothing in subparagraph (ii), (iii) (I) or (v) of section 130 (2)(d) shall operate so as to treat as a distribution for the purposes of the Corporation Tax Acts so much of the interest or other distribution as represents a reasonable commercial return for the use of that principal.<\/p>\n<p>(5)Subject to subsections (6) and (7), subsection (2) shall not apply to any interest paid by the borrower, in an accounting period of the borrower, to another company in respect of relevant principal advanced by that other company, where &#8211;<\/p>\n<p>(a)in that accounting period the borrower carries on in the State a specified trade,<\/p>\n<p>(b)the relevant principal in respect of which the interest is paid is used in the course of the specified trade &#8211;<\/p>\n<p>(i)for the activities of the trade which consist of the manufacture of goods within the meaning of the definition of &#8220;specified trade&#8221; in paragraph (a) of subsection (1), or<\/p>\n<p>(ii)where paragraph (b) of subsection (1) applies, for the activities of the trade which consist of such selling by wholesale as is referred to in paragraph (II) of the definition of &#8220;specified trade&#8221; in that paragraph,<\/p>\n<p>and<\/p>\n<p>(c)the interest, if it were not a distribution, would be treated as a trading expense of that trade for that accounting period.<\/p>\n<p>(6)Subsection (5) shall not apply to interest paid in respect of relevant principal to a company which on the 12th day of April, 1989, had no outstanding amounts of relevant principal advanced.<\/p>\n<p>(7)Notwithstanding subsection (5), where at any time after the 12th day of April, 1989, the total of the amounts of relevant principal (in this subsection referred to as &#8220;the current amounts of relevant principal&#8221;) advanced by a company in respect of relevant securities held directly or indirectly by the company at that time is in excess of a limit, being a limit equal to 110 per cent of the total of the amounts of relevant principal advanced by the company in respect of relevant securities held directly or indirectly by the company on the 12th day of April, 1989, then, such part of any interest paid at that time to the company in respect of relevant principal as bears, in relation to the total amount of interest so paid to the company, the same proportion as the excess bears in relation to the current amounts of relevant principal shall not be treated as a distribution for the purposes of the Corporation Tax Acts in the hands of the company.<\/p>\n<p>(8)<\/p>\n<p>(a)In this subsection and in subsection (10), &#8220;specified period&#8221;, in relation to relevant principal, means the period commencing on the date on which the relevant principal was advanced and ending on the date on which the relevant principal is to be repaid under the terms of the agreement to advance the relevant principal or, if earlier &#8211;<\/p>\n<p>(i)in the case of relevant principal advanced before the 11th day of April, 1994, the 11th day of April, 2001, and<\/p>\n<p>(ii)in any other case, a date which is 7 years after the date on which the relevant principal was advanced.<\/p>\n<p>(b)Notwithstanding subsection (5), where at any time on or after the 31st day of January, 1990, the total of the amounts of relevant principal (in this subsection and in subsections (9) and (10) referred to as &#8220;the current amounts of relevant principal&#8221;) advanced by a company in respect of relevant securities held directly or indirectly by the company at that time is in excess of a limit, being a limit equal to 75 per cent of the total of the amounts of relevant principal advanced by the company in respect of relevant securities held directly or indirectly by the company on the 12th day of April, 1989, then, any interest paid to the company in respect of relevant principal advanced by the company on or after the 31st day of January, 1990, being relevant principal which is included in the current amounts of relevant principal, shall not be treated as a distribution for the purposes of the Corporation Tax Acts in the hands of the company.<\/p>\n<p>(c)Where apart from this paragraph any part of any interest paid to a company in respect of relevant principal advanced by the company on or after the 31st day of January, 1990, would not be treated as a distribution for the purposes of the Corporation Tax Acts in the hands of the company by virtue only of paragraph (b), then, that paragraph shall not apply in relation to so much of that interest as is paid for a specified period in respect of relevant principal advanced and which was, at the time the relevant principal was advanced, specified in the list referred to in subparagraph (iv) if &#8211;<\/p>\n<p>(i)the relevant principal is advanced by the company to a borrower who was in negotiation before the 31st day of January, 1990, with any company for an amount of relevant principal,<\/p>\n<p>(ii)the borrower had received before the 31st day of January, 1990, a written offer of grant aid from the Industrial Development Authority, the Shannon Free Airport Development Company Limited or \u00dadar\u00e1s na Gaeltachta in respect of a specified trade or a proposed specified trade for the purposes of which trade the relevant principal is borrowed,<\/p>\n<p>(iii)the specified trade is a trade which the borrower commenced to carry on after the 31st day of January, 1990, or is a specified trade of the borrower in respect of which the borrower is committed, under a business plan approved by the Industrial Development Authority, the Shannon Free Airport Development Company Limited or \u00dadar\u00e1s na Gaeltachta, to the creation of additional employment,<\/p>\n<p>(iv)before the 25th day of March, 1992, the specified trade of the borrower was included in a list prepared by the Industrial Development Authority and approved before that day by the Minister for Industry and Commerce and the Minister for Finance, being a list specifying a particular amount of relevant principal in respect of each trade which amount is considered to be essential for the success of that trade, and<\/p>\n<p>(v)the borrower or a company connected with the borrower is not a company which commenced to carry on relevant trading operations (within the meaning of section 446) after the 20th day of April, 1990, or intends to commence to carry on such trading operations;<\/p>\n<p>but this paragraph shall not apply to any interest in respect of any relevant principal advanced after the time when the total of the amounts of relevant principal to which this paragraph applies, advanced by all lenders who have made such advances, exceeds \u20ac215,855,473.33.<\/p>\n<p>(d)For the purposes of this subsection and subsections (9) and (10) &#8211;<\/p>\n<p>(i)relevant principal advanced by a company at any time on or after a day includes any relevant principal advanced on or after that day to a borrower under an agreement entered into before that day,<\/p>\n<p>(ii)where on or after the 6th day of May, 1993, a period of repayment of relevant principal advanced by a company is extended (whether or not the right to such an extension arose out of the terms of the agreement to advance the relevant principal), the company shall be treated as having &#8211;<\/p>\n<p>(I)received repayment of the relevant principal, and<\/p>\n<p>(II)advanced a corresponding amount of relevant principal,<\/p>\n<p>on the date on which apart from the extension the relevant principal fell to be repaid, and<\/p>\n<p>(iii)where at any time after an amount of relevant principal is specified in a list in accordance with paragraph (c)(iv) or subsection (9)(c)(ii) or (10)(b)(ii) a company advances, or is treated as advancing, to a borrower relevant principal the interest in respect of which is treated as a distribution by virtue only of paragraph (c) or subsection (9)(c) or (10)(b), the amount of relevant principal specified in the list shall be treated as reduced by the amount of relevant principal so advanced, or treated as advanced, and the amount so reduced shall be treated as the amount specified in that list.<\/p>\n<p>(e)For the purposes of this subsection and subsections (9) and (10), where a company which has on or after the 31st day of January, 1990, advanced relevant principal to a borrower under the terms of an agreement and, under the terms of that or any other agreement, the company assigns to another company part or all of its rights and obligations under the first-mentioned agreement in relation to the relevant principal, such assignment shall be deemed not to have taken place.<\/p>\n<p>(9)<\/p>\n<p>(a)Notwithstanding subsections (5), (7) and (8), where at any time on or after the 31st day of December, 1991, the current amounts of relevant principal advanced by a company in respect of relevant securities held directly or indirectly by the company at that time is in excess of a limit, being a limit equal to 40 per cent of the total of the amounts of relevant principal advanced by the company in respect of the relevant securities held directly or indirectly by the company on the 12th day of April. 1989, then, any interest paid to the company in respect of relevant principal advanced by the company on or after the 31st day of December, 1991, being relevant principal which is included in the current amounts of relevant principal, shall not be treated as a distribution for the purposes of the Corporation Tax Acts in the hands of the company.<\/p>\n<p>(b)<\/p>\n<p>(i)Where the total of the amounts of relevant principal advanced by a company in respect of relevant securities held directly or indirectly by the company at any time on or after the 31st day of December, 1991, is less than the limit referred to in paragraph (a), that paragraph shall apply as if that limit were the total of the amounts of relevant principal so advanced as at that time unless the company proves that it has as far as possible, at all times on or after the 31st day of December, 1991, advanced to borrowers relevant principal in respect of the interest on which paragraph (a) does not, or would not, apply by virtue of paragraph (c).<\/p>\n<p>(ii)Where at any time during the period commencing on the 18th day of April, 1991, and ending immediately before the 31st day of December, 1991, an amount of relevant principal which was advanced to a borrower, being a company which carries on one or more trading operations (within the meaning of section 445(1)), is repaid, this section shall apply as if &#8211;<\/p>\n<p>(I)references in subparagraph (i) and in paragraph (a) to the 31st day of December, 1991, were references to the day on which the amount is repaid, and<\/p>\n<p>(II)during that period &#8211;<\/p>\n<p>(A)the reference in subparagraph (i) to relevant principal in respect of the interest on which paragraph (a) does not, or would not, apply by virtue of paragraph (c) were a reference to such principal in respect of the interest on which paragraph (b) of subsection (8) does not, or would not, apply by virtue of paragraph (c) of that subsection, and<\/p>\n<p>(B)the reference in paragraph (c) of subsection (8) to paragraph (b) of that subsection were a reference to paragraph (a).<\/p>\n<p>(c)Where apart from this paragraph any part of any interest paid to a company in respect of relevant principal advanced by the company on or after the 31st day of December, 1991, would not be treated as a distribution for the purposes of the Corporation Tax Acts in the hands of the company by virtue only of paragraph (a), then, subject to subsection (11), that paragraph shall not apply in relation to so much of that interest as is paid if &#8211;<\/p>\n<p>(i)the specified trade is a trade which the borrower commenced to carry on after the 31st day of January, 1990, or is a specified trade of the borrower in respect of which the borrower is committed, under a business plan approved by the Industrial Development Authority, the Shannon Free Airport Development Company Limited or \u00dadar\u00e1s na Gaeltachta, to the creation of additional employment,<\/p>\n<p>(ii)the specified trade of the borrower was selected by the Industrial Development Authority for inclusion in a list, approved by the Minister for Industry and Commerce and the Minister for Finance, being a list specifying a particular amount of relevant principal in respect of each trade which amount is considered to be essential for the success of that trade, and<\/p>\n<p>(iii)the borrower or a company connected with the borrower is not a company which commenced to carry on relevant trading operations (within the meaning of section 446) after the 20th day of April, 1990, or intends to commence to carry on such trading operations.<\/p>\n<p>(10)<\/p>\n<p>(a)Notwithstanding subsections (5) and (7) to (9), any interest paid to a company in respect of relevant principal advanced by the company on or after the 20th day of December, 1991, shall not be treated as a distribution for the purposes of the Corporation Tax Acts in the hands of the company.<\/p>\n<p>(b)Where apart from this paragraph any interest paid to a company in respect of relevant principal advanced by the company on or after the 20th day of December, 1991, would not be treated as a distribution for the purposes of the Corporation Tax Acts in the hands of the company by virtue only of paragraph (a), then, subject to subsection (11), that paragraph shall not apply in relation to so much of that interest as is paid for a specified period in respect of relevant principal advanced and which was, at the time the relevant principal was advanced, specified in the list referred to in subparagraph (ii) if &#8211;<\/p>\n<p>(i)the specified trade is a trade which the borrower commenced to carry on after the 31st day of January, 1990, or is a specified trade of the borrower in respect of which the borrower is committed, under a business plan approved by the Industrial Development Authority, the Shannon Free Airport Development Company Limited or \u00dadar\u00e1s na Gaeltachta, to the creation of additional employment,<\/p>\n<p>(ii)before the 25th day of March, 1992, the specified trade of the borrower was included in a list prepared by the Industrial Development Authority and approved before that day by the Minister for Industry and Commerce and the Minister for Finance, being a list specifying a particular amount of relevant principal in respect of each trade which amount is considered to be essential for the success of that trade, and<\/p>\n<p>(iii)the borrower is not a company which carries on relevant trading operations (within the meaning of section 446) or intends to carry on such trading operations.<\/p>\n<p>(11)Subsections (9)(c) and (10)(b) shall not apply to any interest in respect of any relevant principal advanced after the time when the total of the amounts of relevant principal to which those subsections apply, advanced by all lenders who have made such advances, exceeds the aggregate of &#8211;<\/p>\n<p>(a)\u20ac317,434,519.61, and<\/p>\n<p>(b)the excess, if any, of \u20ac215,855,473.33 over the total of the amounts of relevant principal to which subsection (8)(c) applies advanced by all lenders who have made such advances.<\/p>\n<p>(12)<\/p>\n<p>(a)In this subsection, &#8220;scheduled repayment date&#8221;, in relation to any relevant principal, means the date on which that relevant principal is to be repaid under the terms of the agreement to advance that relevant principal.<\/p>\n<p>(b)Where at any time before the 7th day of December, 1993 &#8211;<\/p>\n<p>(i)relevant principal (in this subsection referred to as &#8220;the first-mentioned relevant principal&#8221;), the interest in respect of which was treated as a distribution by virtue only of subsection (8)(c), (9)(c) or (10)(b), advanced by a company to a borrower was repaid by the borrower before the scheduled repayment date, and<\/p>\n<p>(ii)a further amount or further amounts of relevant principal, the interest in respect of which is to be treated as a distribution by virtue only of subsection (8)(c), (9)(c) or (10)(b), was or were advanced to that borrower,<\/p>\n<p>then, subsection (8)(d)(iii) shall not apply in relation to so much of &#8211;<\/p>\n<p>(I)the further amount of relevant principal advanced as does not exceed the amount of relevant principal repaid, or<\/p>\n<p>(II)where there are more further amounts advanced than one, the aggregate of the further amounts of relevant principal advanced as does not exceed the relevant principal repaid.<\/p>\n<p>(c)Where by virtue of paragraph (b) subsection (8) (d) (iii) does not apply in relation to any amount of relevant principal advanced by a company, the company shall be treated as having &#8211;<\/p>\n<p>(i)received a repayment of that amount of relevant principal, and<\/p>\n<p>(ii)advanced a corresponding amount of relevant principal,<\/p>\n<p>on the scheduled repayment date of the first-mentioned relevant principal.<\/p>\n<p>(d)For the purposes of this subsection, where there are more further advances of relevant principal than one, the amount to which subsection (8)(d)(iii) does not apply shall be referable as far as possible to an earlier rather than a later such further advance.<\/p>\n<p>(e)Notwithstanding paragraphs (b) to (d), interest which but for this paragraph would not be treated as a distribution by virtue only of subsection (8)(d)(iii) may be treated as a distribution if it is paid in respect of relevant principal advanced before the 7th day of December, 1993.<\/p>\n<p>(13)<\/p>\n<p>(a)In this subsection, &#8220;relevant period&#8221; means a period which commences at a time at which, in accordance with the terms of the agreement under which relevant principal secured by a relevant security is advanced, an amount representing the interest for the use of the relevant principal is to be paid, and ends at a time immediately before the next time at which such an amount is to be paid.<\/p>\n<p>(b)Interest paid to a company in respect of &#8211;<\/p>\n<p>(i)relevant principal denominated in a currency other than the currency of the State, and<\/p>\n<p>(ii)a relevant period which begins on or after the 30th day of January, 1991,<\/p>\n<p>shall not be a distribution for the purposes of the Corporation Tax Acts in the hands of the company if, at any time during that period, the rate on the basis of which interest is computed exceeds 80 per cent of the rate known as the 3 month European Interbank Offered Rate.<\/p>\n<p>(c)Paragraph (b) shall not apply to any interest paid to a company in respect of relevant principal advanced by the company &#8211;<\/p>\n<p>(i)before the 30th day of January, 1991, under an agreement entered into before that day if on that day the rate on the basis of which interest in respect of the relevant security is to be computed exceeds 80 per cent of the rate known as the 3 month European Interbank Offered Rate; but this subparagraph shall not apply as respects any relevant period commencing on or after the 20th day of December, 1991, if in that relevant period that rate exceeds the rate on the basis of which interest would have been computed if the relevant principal had continued to be denominated in the currency in which it was denominated on the 30th day of January, 1991,<\/p>\n<p>(ii)on or after the 30th day of January, 1991 &#8211;<\/p>\n<p>(I)which is included in a list referred to in subsection (8)(c)(iv), (9)(c)(ii) or (10)(b)(ii), and<\/p>\n<p>(II)for the purposes of a specified trade of a borrower who is certified by the Minister for Enterprise, Trade and Employment as having received an undertaking that the interest would be treated as a distribution;<\/p>\n<p>but this subparagraph shall not apply as respects any relevant period commencing on or after the 20th day of December, 1991, if in that relevant period the rate on the basis of which interest in respect of the relevant security is to be computed exceeds &#8211;<\/p>\n<p>(A)a rate approved by the Minister for Finance in consultation with the Minister for Enterprise, Trade and Employment, or<\/p>\n<p>(B)where it is lower than the rate so approved and the relevant principal was advanced on or after the 30th day of January, 1991, and before the 20th day of December, 1991, the rate which would have applied if the relevant principal had continued to be denominated in the currency in which it was denominated when it was advanced,<\/p>\n<p>(iii)on or after the 18th day of April, 1991, where the rate on the basis of which that interest is computed exceeds 80 per cent of the rate known as the 3 month European Interbank Offered Rate by reason only that the relevant principal advanced is denominated in sterling, or<\/p>\n<p>(iv)to a borrower which is a company carrying on one or more trading operations within the meaning of section 445(1).<\/p>\n<p>134.<\/p>\n<h4>Limitation on meaning of &#8220;distribution&#8221; in relation to certain payments made in respect of &#8220;foreign source&#8221; finance.<\/h4>\n<p>(1)<\/p>\n<p>(a)In this section &#8211;<\/p>\n<p>&#8220;agricultural society&#8221; and &#8220;fishery society&#8221; have the meanings respectively assigned to them by section 133(1)(a);<\/p>\n<p>&#8220;selling by wholesale&#8221; means selling goods of any class to a person who carries on a business of selling goods of that class or uses goods of that class for the purposes of a trade or undertaking carried on by the person;<\/p>\n<p>&#8220;specified trade&#8221; means, subject to paragraphs (b) and (d) and to subsection (6), a trade which consists wholly or mainly of &#8211;<\/p>\n<p>(i)the manufacture of goods, including activities which, if the borrower were to make a claim for relief in respect of the trade under Part 14, would be regarded for the purposes of that Part as the manufacture of goods, or<\/p>\n<p>(ii)the rendering of services in the course of a service undertaking in respect of which an employment grant was made by the Industrial Development Authority under section 2 of the Industrial Development (No. 2) Act, 1981.<\/p>\n<p>(b)Where the borrower mentioned in subsection (5) is a 75 per cent subsidiary of &#8211;<\/p>\n<p>(i)an agricultural society, or<\/p>\n<p>(ii)a fishery society,<\/p>\n<p>&#8220;specified trade&#8221;, in that subsection, means a trade of the borrower which consists wholly or mainly of either or both of &#8211;<\/p>\n<p>(I)the manufacture of goods within the meaning of the definition of &#8220;specified trade&#8221; in paragraph (a), and<\/p>\n<p>(II)the selling by wholesale of &#8211;<\/p>\n<p>(A)where subparagraph (i) applies, agricultural products, or<\/p>\n<p>(B)where subparagraph (ii) applies, fish.<\/p>\n<p>(c)For the purposes of the definition of &#8220;specified trade&#8221; in paragraph (a) and of paragraph (b), a trade shall be regarded, as respects an accounting period, as consisting wholly or mainly of particular activities only if the total amount receivable by the borrower from sales made or, as the case may be, in payment for services rendered in the course of those activities in the accounting period is not less than 75 per cent of the total amount receivable by the borrower from all sales made in the course of the trade in that period.<\/p>\n<p>(d)A qualifying shipping trade (within the meaning of section 407) shall not be regarded as a specified trade for the purposes of this section.<\/p>\n<p>(2)This section shall apply only where the principal secured has been advanced by a company out of money subscribed for the share capital of the company and that share capital is beneficially owned directly or indirectly by a person or persons resident outside the State.<\/p>\n<p>(3)Any interest or other distribution which &#8211;<\/p>\n<p>(a)is paid out of assets of a company (in this section referred to as &#8220;the borrower&#8221;) to another company within the charge to corporation tax, and<\/p>\n<p>(b)is so paid in respect of a security (in this section referred to as a &#8220;relevant security&#8221;) within subparagraph (ii), (iii) (I) or (v) of section 130(2)(d),<\/p>\n<p>shall not be a distribution for the purposes of the Corporation Tax Acts unless the application of this subsection is excluded by subsection (4) or (5).<\/p>\n<p>(4)Subsection (3) shall not apply in a case where the consideration given by the borrower for the use of the principal secured represents more than a reasonable commercial return for the use of that principal; but, where this subsection applies, nothing in subparagraph (ii), (iii) (I) or (v) of section 130(2)(d) shall operate so as to treat as a distribution for the purposes of the Corporation Tax Acts so much of the interest or other distribution as represents a reasonable commercial return for the use of that principal.<\/p>\n<p>(5)Subsection (3) shall not apply to any interest paid by the borrower, in an accounting period of the borrower, to another company the ordinary trading activities of which include the lending of money, where &#8211;<\/p>\n<p>(a)in that accounting period the borrower carries on in the State a specified trade, and<\/p>\n<p>(b)the interest, if it were not a distribution, would be treated as a trading expense of that trade for that accounting period.<\/p>\n<p>(6)<\/p>\n<p>(a)This subsection shall apply to any interest or other distribution which apart from this subsection would be a distribution for the purposes of the Corporation Tax Acts, other than any interest or other distribution which is paid by the borrower under an obligation entered into &#8211;<\/p>\n<p>(i)before the 13th day of May, 1986, or<\/p>\n<p>(ii)before the 1st day of September, 1986, in accordance with negotiations which were in progress between the borrower and a lender before the 13th day of May, 1986.<\/p>\n<p>(b)Subsection (5) shall apply as respects any interest or other distribution to which this subsection applies as if paragraph (ii) of the definition of &#8220;specified trade&#8221; in subsection (1)(a) were deleted.<\/p>\n<p>(c)For the purposes of paragraph (a) &#8211;<\/p>\n<p>(i)an obligation shall be treated as having been entered into before a particular date only if before that date there was in existence a binding contract in writing under which that obligation arose, and<\/p>\n<p>(ii)negotiations in accordance with which an obligation was entered into shall not be regarded as having been in progress before the 13th day of May, 1986, unless on or before that date preliminary commitments or agreements in relation to that obligation had been entered into between the lender referred to in that paragraph and the borrower.<\/p>\n<p>135.<\/p>\n<h4>Distributions: supplemental.<\/h4>\n<p>(1)<\/p>\n<p>(a)In this Chapter, &#8220;new consideration&#8221; means consideration not provided directly or indirectly out of the assets of the company, but does not include amounts retained by the company by means of capitalising a distribution.<\/p>\n<p>(b)Notwithstanding paragraph (a), where share capital has been issued at a premium representing new consideration, any part of that premium applied afterwards in paying up share capital shall also be treated as new consideration for that share capital, except in so far as the premium has been taken into account under section 132(3) so as to enable a distribution to be treated as a repayment of share capital.<\/p>\n<p>(2)<\/p>\n<p>(a)No consideration derived from the value of any share capital or security of a company, or from voting or other rights in a company, shall be regarded for the purposes of this Chapter as new consideration received by the company unless the consideration consists of &#8211;<\/p>\n<p>(i)money or value received from the company as a distribution,<\/p>\n<p>(ii)money received from the company as a payment which for those purposes constitutes a repayment of that share capital or of the principal secured by that security, or<\/p>\n<p>(iii)the giving up of the right to that share capital or security on its cancellation, extinguishment or acquisition by the company.<\/p>\n<p>(b)No amount shall be regarded as new consideration by virtue of subparagraph (ii) or (iii) of paragraph (a) in so far as it exceeds any new consideration received by the company for the issue of the share capital or security in question or, in the case of share capital which constituted a distribution on issue, the nominal value of that share capital.<\/p>\n<p>(2A)No consideration derived from any share capital or security of a company (being a close company within the meaning of section 430 and in this subsection referred to as the &#8216;first-mentioned company&#8217;) issued to another company (being a close company within the meaning of section 430 and in this subsection referred to as the &#8216;second-mentioned company&#8217;) in exchange for the issue of shares or securities by the second-mentioned company shall be regarded for the purposes of this Chapter as new consideration received by the second-mentioned company in so far as it exceeds any new consideration received by the first-mentioned company for the issue of the said share capital or security.<\/p>\n<p>(3)Where 2 or more companies enter into arrangements to make distributions to each other&#8217;s members, all parties concerned may for the purposes of this Chapter be treated as if anything done by any of those companies had been done by any other, and this subsection shall apply however many companies participate in the arrangements.<\/p>\n<p>(3A)Where a member of a company (being a close company within the meaning of section 430 and in this subsection referred to as the &#8216;first- mentioned company&#8217;), or a person connected with that member, enters into arrangements directly or indirectly with another company (being a close company within the meaning of section 430 and in this subsection referred to as the &#8216;second-mentioned company&#8217;), whereby a member (in this subsection referred to as the &#8216;disposing member&#8217;), of the first-mentioned company disposes of an interest in shares or securities of the first-mentioned company and the consideration for the acquisition of those shares or securities is paid or to be paid directly or indirectly out of the assets of the first-mentioned company, any amount received directly or indirectly by the disposing member from the second-mentioned company in respect of the disposal shall be treated for the purposes of this Chapter as a distribution made by the first-mentioned company to that member at the time of the payment by the second-mentioned company, and this subsection shall apply however many companies participate in the arrangements.<\/p>\n<p>(4)<\/p>\n<p>(a)In this Chapter and in section 137, &#8220;in respect of shares in the company&#8221; and &#8220;in respect of securities of the company&#8221;, in relation to a company which is a member of a 90 per cent group, mean respectively in respect of shares in that company or any other company in the group and in respect of securities of that company or any other company in the group.<\/p>\n<p>(b)Without prejudice to section 130(2)(b) as extended by paragraph (a), in relation to a company which is a member of a 90 per cent group, &#8220;distribution&#8221; includes anything distributed out of assets of the company (whether in cash or otherwise) in respect of shares in or securities of another company in the group.<\/p>\n<p>(c)Nothing in this subsection shall require a company to be treated as making a distribution to any other company which is in the same group and is resident in the State.<\/p>\n<p>(d)For the purposes of this subsection, a principal company and all its 90 per cent subsidiaries form a 90 per cent group, and &#8220;principal company&#8221; means a company of which another company is a subsidiary.<\/p>\n<p>(e)Nothing in this subsection shall require any company which is a subsidiary (within the meaning of section 7 of the Companies Act 2014) of another company to be treated as making a distribution where it acquires shares in the other company in accordance with section 9(1) of the Insurance Act, 1990.<\/p>\n<p>(5)A distribution shall be treated under this Chapter as made, or consideration as provided, out of assets of a company if the cost falls on the company.<\/p>\n<p>(6)In this Chapter and in section 137, &#8220;share&#8221; includes stock and any other interest of a member in a company.<\/p>\n<p>(8)For the purposes of this Chapter and of section 137, &#8220;security&#8221; includes securities not creating or evidencing a charge on assets, and interest paid by a company on money advanced without the issue of a security for the advance, or other consideration given by a company for the use of money so advanced, shall be treated as if paid or given in respect of a security issued for the advance by the company.<\/p>\n<p>(10)For the purposes of this Chapter and of section 137, a thing shall be regarded as done in respect of a share if it is done to a person as being the holder of the share, or as having at a particular time been the holder of the share, or is done in pursuance of a right granted or offer made in respect of a share, and anything done in respect of shares by reference to share holdings at a particular time shall be regarded as done to the then holder of the shares or the personal representatives of any shareholder then dead.<\/p>\n<p>(11)Subsection (10) shall apply in relation to securities as it applies in relation to shares.<\/p>\n<p>Chapter 3<\/p>\n<h4>Distributions and tax credits &#8211; general (ss. 136-139)<\/h4>\n<p>136. Tax credit for certain recipients of distributions.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)Where, before the 6th day of April, 1999, a company resident in the State makes a distribution, the recipient of the distribution shall, subject to the Tax Acts, be entitled to a tax credit under this section (in the Tax Acts referred to as a &#8220;tax credit&#8221;).<\/p>\n<p>(2)The tax credit in respect of a distribution shall be available for the purposes specified in the Tax Acts and shall, subject to any express provision to the contrary, be an amount determined by the formula &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the standard credit rate per cent for the year of assessment in which the distribution is made, and<\/p>\n<p>Dis the amount or value of the distribution.<\/p>\n<p>(3)A company resident in the State which is entitled to a tax credit in respect of a distribution may claim to have the amount of the tax credit paid to it if &#8211;<\/p>\n<p>(a)the company is wholly exempt from corporation tax or is only not exempt in respect of trading income, or<\/p>\n<p>(b)the distribution is one in relation to which express exemption (otherwise than by section 129) is given, whether specifically or by virtue of a more general exemption from tax, under any provision of the Tax Acts.<\/p>\n<p>(4)A person, not being a company resident in the State, who is entitled to a tax credit in respect of a distribution may claim &#8211;<\/p>\n<p>(a)to have the credit set against the income tax chargeable on such person&#8217;s income for the year of assessment in which the distribution is made, and<\/p>\n<p>(b)where the credit exceeds that income tax, and the person is &#8211;<\/p>\n<p>(i)resident in the State, or<\/p>\n<p>(ii)entitled under section 1033 to a tax credit in respect of the distribution,<\/p>\n<p>to have the excess paid to such person.<\/p>\n<p>(5)<\/p>\n<p>(a)In this subsection, &#8220;trust resident in the State&#8221; means a trust administered under the law of the State, not being a trust the general administration of which is ordinarily carried on outside the State and the trustees or a majority of the trustees of which are resident or ordinarily resident outside the State.<\/p>\n<p>(b)Where a distribution mentioned in subsection (1) is, or is to be treated as, or is deemed to be under any provision of the Tax Acts, income of a person other than the recipient, that person shall be treated for the purposes of this section as receiving the distribution (and accordingly the question whether that person is entitled to a tax credit in respect of the distribution shall be determined by reference to where that person and not the actual recipient is resident), and where any such distribution is income of a trust resident in the State, the trustees shall be entitled to a tax credit in respect of such distribution if no other person is to be treated for the purposes of this section as receiving the distribution.<\/p>\n<p>137. Disallowance of reliefs in respect of bonus issues.<br \/>\n(1)This section shall apply where any person (in this section referred to as &#8220;the recipient&#8221;) receives an amount treated as a distribution by virtue of &#8211;<\/p>\n<p>(a)paragraph (c) or (d) of section 130(2),<\/p>\n<p>(b)section 131, or<\/p>\n<p>(c)section 132(2)(a),<\/p>\n<p>and, in this section, a distribution within paragraph (a), (b) or (c) is referred to as a &#8220;bonus issue&#8221;<\/p>\n<p>(2)Subject to subsection (5), where the recipient is entitled by reason of &#8211;<\/p>\n<p>(a)any exemption from tax,<\/p>\n<p>(b)the setting-off of losses against profits or income, or<\/p>\n<p>(c)the payment of interest,<\/p>\n<p>to recover tax in respect of any distribution which the recipient has received, no account shall be taken, for the purposes of any such exemption, set-off or payment of interest, of any bonus issue which the recipient has received.<\/p>\n<p>(3)Subject to subsection (5), a bonus issue shall be treated as not being franked investment income within the meaning of section 156.<\/p>\n<p>(4)[deleted]<\/p>\n<p>(5)Nothing in subsections (2) and (3) shall affect the proportion (if any) of any bonus issue made in respect of any shares or securities which, if that bonus issue were declared as a dividend, would represent a normal return to the recipient on the consideration provided by the recipient for the relevant shares or securities, that is, those in respect of which the bonus issue was made and, if those securities are derived from shares or securities previously acquired by the recipient, the shares or securities which were previously acquired.<\/p>\n<p>(6)For the purposes of subsection (5) &#8211;<\/p>\n<p>(a)if the consideration provided by the recipient for any of the relevant shares or securities was in excess of their market value at the time the recipient acquired them, or if no consideration was provided by the recipient for any of the relevant shares or securities, the recipient shall be taken to have provided for those shares or securities consideration equal to their market value at the time the recipient acquired them, and<\/p>\n<p>(b)in determining whether an amount received by means of dividend exceeds a normal return, regard shall be had to the length of time before the receipt of that amount that the recipient first acquired any of the relevant shares or securities and to any dividends and other distributions made in respect of the relevant shares or securities during that time.<\/p>\n<p>138.<\/p>\n<h4>Treatment of dividends on certain preference shares.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8220;preference shares&#8221; does not include preference shares &#8211;<\/p>\n<p>(a)which are quoted on a stock exchange in the State,<\/p>\n<p>(b)which are not so quoted but which carry rights in respect of dividends and capital comparable with those general for fixed-dividend shares quoted on a stock exchange in the State, or<\/p>\n<p>(c)which are non-transferable shares issued on or after the 6th day of April, 1989, by a company in the course of carrying on relevant trading operations within the meaning of section 445 or 446, to a company &#8211;<\/p>\n<p>(i)none of the shares of which is beneficially owned, whether directly or indirectly, by a person resident in the State, and<\/p>\n<p>(ii)which, if this paragraph had not been enacted, would not be chargeable to corporation tax in respect of any profits other than dividends which would be so chargeable by virtue of this section;<\/p>\n<p>&#8220;shares&#8221; includes stock.<\/p>\n<p>(2)This section shall apply to any dividend which &#8211;<\/p>\n<p>(a)is paid by a company (in this section referred to as &#8220;the issuer&#8221;) to another company (in this section referred to as &#8220;the subscriber&#8221;) within the charge to corporation tax, and<\/p>\n<p>(b)is so paid in respect of preference shares of the issuer.<\/p>\n<p>(3)Notwithstanding any provision of the Tax Acts &#8211;<\/p>\n<p>(a)[deleted]<\/p>\n<p>(b)the dividend shall be chargeable to corporation tax under Case IV of Schedule D.<\/p>\n<p>(4)Where, but for the deletion of sections 445 and 446, shares issued by a company would not be preference shares for the purposes of this section then, notwithstanding the deletion of those sections, those shares shall be treated as not being preference shares for those purposes and this section shall apply with any modifications necessary to give effect to this subsection.<\/p>\n<p>139. Dividends and other distributions at gross rate or of gross amount.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)Where any right or obligation created before the 6th day of April, 1976, is expressed by reference to a dividend at a gross rate or of a gross amount, that right or obligation shall, in relation to a dividend payable on or after that date and before the 6th day of April, 1999, take effect as if the reference were to a dividend of an amount determined by the formula &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the standard credit rate per cent for the year of assessment in which the dividend is paid, and<\/p>\n<p>Dis an amount equal to a dividend at that gross rate or of that gross amount.<\/p>\n<p>(2)Subsection (1) shall apply with the necessary modifications to a dividend partly at a gross rate or of a gross amount and shall apply to any distribution other than a dividend as it applies to a dividend.<\/p>\n<h4>Chapter 4 Distributions out of certain exempt profits or gains or out of certain relieved income (ss. 140-146)<\/h4>\n<p>140.<\/p>\n<h4>Distributions out of profits or gains from stallion fees, stud greyhound services fees and occupation of certain woodlands.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8220;exempt profits&#8221; means profits or gains which by virtue of section 231, 232 or 233 were not charged to tax;<\/p>\n<p>&#8220;other profits&#8221; includes a dividend or other distribution of a company resident in the State, but does not include a distribution to which subsection (3)(a)(i) applies.<\/p>\n<p>(2)Where a distribution for an accounting period is made by a company in part out of exempt profits and in part out of other profits, the distribution shall be treated as if it consisted of 2 distributions respectively made out of exempt profits and out of other profits.<\/p>\n<p>(3)<\/p>\n<p>(a)Subject to section 817X, so much of any distribution as has been made out of exempt profits &#8211;<\/p>\n<p>(i)shall, where the recipient of that distribution is a company, be deemed for the purposes of the Corporation Tax Acts to be exempt profits of the company, and<\/p>\n<p>(ii)shall not be regarded as income for any purpose of the Income Tax Acts.<\/p>\n<p>(b)[deleted]<\/p>\n<p>(4)[deleted]<\/p>\n<p>(5)In relation to any distribution, including part of a distribution treated under subsection (2) as a distribution, made by a company out of exempt profits, section 152 shall apply to the company so that the statements provided for by that section shall show as respects each such distribution, in addition to the particulars required to be given apart from this section, that the distribution is made out of exempt profits.<\/p>\n<p>(6)[deleted]<\/p>\n<p>(7)Where a company makes a distribution for an accounting period, the distribution shall be regarded for the purposes of this section as having been made out of the distributable income (within the meaning of section 144(8)) of that period to the extent of that income and, in relation to the excess of the distribution over that income, out of the most recently accumulated income.<\/p>\n<p>(8)Where a period of account for or in respect of which a company makes a distribution is not an accounting period and part of the period of account is within an accounting period, the proportion of the distribution to be treated for the purposes of this section as being for or in respect of the accounting period shall be the same proportion as that part of the period of account bears to the whole of that period.<\/p>\n<p>(9)Where a company makes a distribution which is not expressed to be for or in respect of a specified period, the distribution shall be treated for the purposes of this section as having been made for the accounting period in which it is made.<\/p>\n<p>141.<\/p>\n<h4>Distributions out of income from patent royalties.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8220;disregarded income&#8221; means &#8211;<\/p>\n<p>(a)as respects distributions made out of specified income accruing to a company on or after the 28th day of March, 1996 &#8211;<\/p>\n<p>(i)income from a qualifying patent which by virtue of section 234(2) has been disregarded for the purposes of income tax, and<\/p>\n<p>(ii)income from a qualifying patent which by virtue of section 234(2) and section 76(6) has been disregarded for the purposes of corporation tax,<\/p>\n<p>but does not include income (in this section referred to as &#8220;specified income&#8221;) from a qualifying patent (within the meaning of section 234) which would not be income from a qualifying patent if paragraph (a) of the definition of &#8220;income from a qualifying patent&#8221; in section 234(1) had not been enacted, and<\/p>\n<p>(b)as respects any other distributions &#8211;<\/p>\n<p>(i)income which by virtue of section 234(2) has been disregarded for the purposes of income tax, and<\/p>\n<p>(ii)income which by virtue of section 234(2) and section 76(6) has been disregarded for the purposes of corporation tax;<\/p>\n<p>&#8220;eligible shares&#8221;, in relation to a company, means shares forming part of the ordinary share capital of the company which &#8211;<\/p>\n<p>(a)are fully paid up,<\/p>\n<p>(b)carry no present or future preferential right to dividends or to the company&#8217;s assets on its winding up and no present or future preferential right to be redeemed, and<\/p>\n<p>(c)are not subject to any different treatment from the treatment which applies to all shares of the same class, in particular different treatment in respect of &#8211;<\/p>\n<p>(i)the dividend payable,<\/p>\n<p>(ii)repayment,<\/p>\n<p>(iii)restrictions attaching to the shares, or<\/p>\n<p>(iv)any offer of substituted or additional shares, securities or rights of any description in respect of the shares;<\/p>\n<p>&#8220;other profits&#8221; includes a dividend or other distribution of a company resident in the State, but does not include a distribution to which subsection (3)(a)(ii) applies.<\/p>\n<p>(2)Where a distribution for an accounting period is made by a company in part out of disregarded income and in part out of other profits, the distribution shall be treated as if it consisted of 2 distributions respectively made out of disregarded income and out of other profits.<\/p>\n<p>(3)<\/p>\n<p>(a)So much of any distribution as has been made out of disregarded income &#8211;<\/p>\n<p>(i)shall, subject to subsection (4) (a), not be regarded as income for any purpose of the Income Tax Acts, and<\/p>\n<p>(ii)shall, where the recipient of that distribution is a company and the distribution is in respect of eligible shares, be deemed for the purposes of this section to be disregarded income.<\/p>\n<p>(b)deleted<\/p>\n<p>(4)<\/p>\n<p>(a)Subsection (3)(a)(i) shall not apply to any distribution received by a person unless it is a distribution &#8211;<\/p>\n<p>(i)in respect of eligible shares, or<\/p>\n<p>(ii)made out of disregarded income, being income (in this subsection referred to in relation to a person as &#8220;relevant income&#8221;) which is referable to a qualifying patent in relation to which the person carried out, either solely or jointly with another person, the research, planning, processing, experimenting, testing, devising, designing, development or other similar activity leading to the invention which is the subject of the qualifying patent.<\/p>\n<p>(b)For the purposes of paragraph (a), where a distribution for an accounting period is made by a company to a person in part out of relevant income, in relation to the person, and in part out of other disregarded income, the distribution shall be treated as if it consisted of 2 distributions respectively made out of relevant income and out of other disregarded income.<\/p>\n<p>(5)<\/p>\n<p>(a)In this subsection &#8211;<\/p>\n<p>&#8220;the amount of aggregate expenditure on research and development incurred by a company in relation to an accounting period&#8221; means the amount of expenditure on research and development activities incurred in the State by the company in the accounting period and the previous 2 accounting periods; but, where in an accounting period a company incurs expenditure on research and development activities and not less than 75 per cent of that expenditure was incurred in the State, all of that expenditure shall be deemed to have been incurred in the State;<\/p>\n<p>&#8220;the amount of the expenditure on research and development activities&#8221;, in relation to expenditure incurred by a company in an accounting period, means non-capital expenditure incurred by the company, being the aggregate of the amounts of &#8211;<\/p>\n<p>(i)such part of the emoluments paid by the company to employees of the company engaged in carrying out research and development activities related to the company&#8217;s trade as is laid out for the purposes of those activities,<\/p>\n<p>(ii)expenditure incurred by the company on materials or goods used solely by the company in the carrying out of research and development activities related to the company&#8217;s trade, and<\/p>\n<p>(iii)a sum paid to another person, not being a person connected with the company, in order that such person may carry out research and development activities related to the company&#8217;s trade,<\/p>\n<p>but, where the company (in this definition referred to as &#8220;the first company&#8221;) is a member of a group, then, for the purposes of this section, the amount of expenditure on research and development activities incurred in an accounting period by another company which in the accounting period is a member of the group shall, on a joint election in writing being made on that behalf by the first company and the other company, be treated as being expenditure incurred on research and development activities in the accounting period by the first company and not by the other company;<\/p>\n<p>&#8220;research and development activities&#8221; has the meaning that it would have in section 766 if section 33 of the Finance Act 2004 had not been enacted.<\/p>\n<p>(b)For the purpose of this subsection &#8211;<\/p>\n<p>(i)2 companies shall be deemed to be members of a group if both companies are wholly or mainly under the control of the same individual or individuals or if one company is a 75 per cent subsidiary of another company or both companies are 75 per cent subsidiaries of a third company and, in determining whether one company is a 75 per cent subsidiary of another company, the other company shall be treated as not being the owner of &#8211;<\/p>\n<p>(I)any share capital which it owns directly in a company if a profit on sale of the shares would be treated as a trading receipt of its trade, or<\/p>\n<p>(II)any share capital which it owns indirectly and which is owned directly by a company for which a profit on the sale of the shares would be a trading receipt;<\/p>\n<p>(ii)a company shall be wholly or mainly under the control of an individual or individuals if not less that 75 per cent of the ordinary share capital of the company is owned directly or indirectly by the individual or, as the case may be, by individuals each of whom owns directly or indirectly part of that share capital;<\/p>\n<p>(iii)sections 412 to 418 shall apply for the purposes of this paragraph as they apply for the purposes of Chapter 5 of Part 12 and, where 2 companies are deemed to be members of a group by reason that both companies are wholly or mainly under the control of the same individual or individuals, those sections shall apply as they would apply for the purposes of that Chapter if the references in those sections to a parent company included a reference to an individual or individuals who hold shares in a company.<\/p>\n<p>(c)Where for an accounting period a company makes one or more distributions out of specified income which accrued to the company on or after the 28th day of March, 1996 and the specified income is income from a qualifying patent in respect of an invention which was patented for bona fide commercial reasons and not primarily for the purpose of avoiding liability to taxation, so much of the amount of that distribution, or the aggregate of such distributions, as does not exceed the amount of aggregate expenditure on research and development incurred by the company in relation to the accounting period shall be treated as a distribution made out of disregarded income.<\/p>\n<p>(d)<\/p>\n<p>(i)Notwithstanding paragraph (c) but subject to subparagraph (ii), if in an accounting period the beneficial recipient (in this paragraph referred to as &#8220;the recipient&#8221;) of the specified income shows in writing to the satisfaction of the Revenue Commissioners that the specified income is income from a qualifying patent in respect of an invention which &#8211;<\/p>\n<p>(I)involved radical innovation, and<\/p>\n<p>(II)was patented for bona fide commercial reasons and not primarily for the purpose of avoiding liability to taxation,<\/p>\n<p>the Revenue Commissioners shall, after consideration of any evidence in relation to the matter which the recipient submits to them and after such consultations (if any) as may seem to them to be necessary with such persons as in their opinion may be of assistance to them, determine whether all distributions made out of specified income accruing to the recipient for that accounting period and all sub sequent accounting periods shall be treated as distributions made out of disregarded income and the recipient shall be notified in writing of the determination.<\/p>\n<p>(ii)A recipient aggrieved by a determination of the Revenue Commissioners made under subparagraph (i) in respect of that recipient may appeal the determination to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of the determination.<\/p>\n<p>(e)The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this subsection to be performed or discharged by the Revenue Commissioners, and references in this subsection to the Revenue Commissioners shall, with any necessary modifications, be construed as including references to an officer so nominated.<\/p>\n<p>(5A)<\/p>\n<p>(a)In this subsection &#8211;<\/p>\n<p>&#8216;arrangement&#8217; means any arrangement, agreement, understanding, promise or undertaking whether express or implied;<\/p>\n<p>&#8216;relevant income&#8217; means income to which paragraph (b) of the definition of &#8216;income from a qualifying patent&#8217; in section 234 applies;<\/p>\n<p>&#8216;the amount of aggregate expenditure on research and development incurred by a company in relation to an accounting period&#8217;, &#8216;the amount of the expenditure on research and development activities&#8217;, and &#8216;research and development activities&#8217; have the same meanings as they have in subsection (5)(a);<\/p>\n<p>&#8216;payment in respect of the use of intellectual property&#8217; means any payment made, directly or indirectly, in respect of &#8211;<\/p>\n<p>(i)any franchise, trade mark, registered design, design right, invention or domain name,<\/p>\n<p>(ii)any copyright or related right within the meaning of the Copyright and Related Rights Act 2000,<\/p>\n<p>(iii)any licence or other right in respect of anything within paragraph (i) or (ii),<\/p>\n<p>(iv)any rights granted under the law of any country, territory, state or area, other than the State, or under any international treaty, convention or agreement to which the State is a party, that correspond to or are similar to those within paragraph (i), (ii) or (iii),<\/p>\n<p>(v)goodwill to the extent that it is directly attributable to anything within paragraph (i), (ii), (iii) or (iv).<\/p>\n<p>(b)Paragraph (b) of subsection (5) shall apply for the purposes of this subsection as it applies for the purposes of that subsection.<\/p>\n<p>(c)This subsection shall apply to a company for an accounting period if under any arrangement &#8211;<\/p>\n<p>(i)<\/p>\n<p>(I)a person could become liable to make to the company any payment in respect of the use of intellectual property by virtue of the fact that any payment which is relevant income made by the person to the company could have been insufficient for the purposes of the arrangement, or<\/p>\n<p>(II)a person becomes liable to make to the company any payment in respect of the use of intellectual property by virtue of the fact that any payment which is relevant income made by the person to the company was insufficient for the purposes of the arrangement,<\/p>\n<p>or<\/p>\n<p>(ii)<\/p>\n<p>(I)the company could become liable to make to any person any payment in respect of the use of intellectual property by the person by virtue of the fact that any payment which is relevant income made by the person to the company could have been excessive for the purposes of the arrangement, or<\/p>\n<p>(II)the company becomes liable to make to any person any payment in respect of the use of intellectual property by the person by virtue of the fact that any payment which is relevant income made by the person to the company was excessive for the purposes of the arrangement.<\/p>\n<p>(d)Where this subsection applies to a company for an accounting period and the company makes for that accounting period one or more distributions out of relevant income, then so much of the amount of that distribution, or the aggregate of such distributions, as does not exceed the amount of aggregate expenditure on research and development incurred by the company in relation to the accounting period shall be treated as a distribution made out of disregarded income; but a distribution shall not be treated as a distribution made out of disregarded income unless the relevant income is income from a qualifying patent in respect of an invention that was patented for bona fide commercial reasons and not primarily for the purpose of avoiding liability to tax.<\/p>\n<p>(6)deleted<\/p>\n<p>(7)In relation to any distribution, including part of a distribution treated under subsection (2) as a distribution, made by a company out of disregarded income, section 152 shall apply to the company so that the statements provided for by that section shall show as respects each such distribution, in addition to the particulars required to be given apart from this section, that the distribution is made out of disregarded income.<\/p>\n<p>(8)deleted<\/p>\n<p>(9)Where a company makes a distribution for an accounting period, the distribution shall be regarded for the purposes of this section as having been made out of the distributable income (within the meaning of section 144(8)) of that period to the extent of that income and, in relation to the excess of the distributions over that income, out of the most recently accumulated income.<\/p>\n<p>(10)Subsections (6) and (7) of section 145 shall apply for the purposes of this section as they apply for the purposes of that section.<\/p>\n<p>(11)This section shall not apply to distributions made out of disregarded income on or after 24 November 2010.<\/p>\n<p>142.<\/p>\n<h4>Distributions out of profits of certain mines.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8220;exempted income&#8221; means income in respect of which a company has obtained relief under &#8211;<\/p>\n<p>(a)the Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956, or<\/p>\n<p>(b)Chapter II (Profits of Certain Mines) of Part XXV of the Income Tax Act, 1967;<\/p>\n<p>&#8220;other income&#8221; means income of a company which is not exempted income.<\/p>\n<p>(2)Subject to section 817X, where a distribution for an accounting period is made by a company wholly out of exempted income, the distribution shall not be regarded as income for any purpose of the Income Tax Acts.<\/p>\n<p>(3)Where a distribution for an accounting period is made by a company in part out of exempted income and in part out of other income, the distribution shall be treated as if it consisted of 2 distributions respectively made out of exempted income and other income, and subsection (2) shall apply to such part of the distribution as is made out of exempted income as it applies to a distribution made wholly out of exempted income.<\/p>\n<p>(4)Any distribution, including part of a distribution treated under subsection (3) as a distribution, made out of exempted income shall, where the recipient is a company resident in the State, be deemed for the purposes of this section to be exempted income of the company.<\/p>\n<p>(5)[deleted]<\/p>\n<p>(6)Subsections (7) and (8) of section 144 and subsections (8) and (9) of section 140 shall apply for the purposes of this section as they apply for the purposes of those sections.<\/p>\n<p>(7)In relation to any distribution, including part of a distribution treated under subsection (3) as a distribution, made out of exempted income, section 152 shall apply so that the statements provided for by that section shall show, in addition to the particulars required to be given apart from this section, that the distribution is made out of exempted income.<\/p>\n<p>143.<\/p>\n<h4>Distributions out of profits from coal, gypsum and anhydrite mining operations.<\/h4>\n<p>(1)In this section, &#8220;relieved income&#8221; means the income of a company &#8211;<\/p>\n<p>(a)on which income tax was paid at a reduced rate by virtue of &#8211;<\/p>\n<p>(i)section 395(1) of the Income Tax Act, 1967,<\/p>\n<p>(ii)section 7 or 8 of the Finance (Miscellaneous Provisions) Act, 1956, or<\/p>\n<p>(iii)section 32 of the Finance Act, 1960,<\/p>\n<p>(b)on which income tax was borne by deduction at a reduced rate under &#8211;<\/p>\n<p>(i)section 396(1) of the Income Tax Act, 1967, or<\/p>\n<p>(ii)section 9 of the Finance (Miscellaneous Provisions) Act, 1956,<\/p>\n<p>or<\/p>\n<p>(c)which is franked investment income, which consists of a distribution made out of relieved income.<\/p>\n<p>(2)[deleted]<\/p>\n<p>(3)Where a distribution is made in part out of relieved income and in part out of other income, the distribution shall be treated as if it consisted of 2 distributions respectively made out of relieved income and out of other income.<\/p>\n<p>(4)Any distribution, including part of a distribution treated under subsection (3) as a distribution, made out of relieved income shall, where the recipient is a company resident in the State, be deemed for the purposes of this section to be relieved income of the company.<\/p>\n<p>(5)[deleted]<\/p>\n<p>(6)Where for a year of assessment the taxable income of an individual which is chargeable at the standard rate includes income represented by distributions made out of relieved income, the individual&#8217;s liability to income tax in respect of the income represented by such distributions shall be an amount equal to the tax on that income calculated at 50 per cent of the standard rate for the year of assessment in which the distributions were made.<\/p>\n<p>(7)Where for a year of assessment the taxable income of an individual which is chargeable at the higher rate includes income represented by distributions made out of relieved income, the individual&#8217;s liability to income tax at the higher rate in respect of the income represented by such distributions shall be an amount equal to the tax, calculated at the higher rate for the year of assessment in which the distributions were made, on the income reduced by 50 per cent.<\/p>\n<p>(8)[deleted]<\/p>\n<p>(9)[deleted]<\/p>\n<p>(10)Subsections (7) and (8) of section 144 and subsections (8) and (9) of section 140 shall apply for the purposes of this section as they apply for the purposes of those sections.<\/p>\n<p>(11)In relation to any distribution, including part of a distribution treated under subsection (3) as a distribution, made by a company out of relieved income, section 152 shall apply so that the statements provided for by that section shall show, in addition to the particulars required to be given apart from this section, that the distribution is made out of relieved income.<\/p>\n<p>144.<\/p>\n<h4>Distributions out of profits from trading within Shannon Airport.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8220;exempted trading operations&#8221; means trading operations which were exempted trading operations for the purposes for Part V of the Corporation Tax Act, 1976;<\/p>\n<p>&#8220;other profits&#8221; includes a dividend or other distribution of a body corporate resident in the State, but does not include a distribution to which subsection (3)(a) applies.<\/p>\n<p>(2)Where a distribution for an accounting period is made by a body corporate in part out of income from exempted trading operations and in part out of other profits, the distribution shall be treated as if it consists of 2 distributions respectively made out of income from exempted trading operations and out of other profits.<\/p>\n<p>(3)<\/p>\n<p>(a)So much of any distribution as has been made out of income from exempted trading operations shall, where the recipient of that distribution is a body corporate, be deemed for the purposes of this section to be income from exempted trading operations.<\/p>\n<p>(b)[deleted]<\/p>\n<p>(4)[deleted]<\/p>\n<p>(5)In relation to any distribution, including part of a distribution treated under subsection (2) as a distribution, made by a body corporate out of income from exempted trading operations, section 152 shall apply to the body corporate so that the statements provided for by that section shall show, as respects each such distribution, in addition to the particulars required to be given apart from this section, that the distribution is made out of income from exempted trading operations.<\/p>\n<p>(6)[deleted]<\/p>\n<p>(7)Where a body corporate makes a distribution for an accounting period, the distribution shall be regarded for the purposes of this section as having been made out of the distributable income of that period to the extent of that income and in relation to the excess of the distribution over that income out of the most recently accumulated income.<\/p>\n<p>(8)For the purposes of subsection (7), the distributable income of a company for an accounting period shall be an amount determined by the formula &#8211;<\/p>\n<p>(R \u2212 S) + T<\/p>\n<p>where &#8211;<\/p>\n<p>R is the amount of income of the company charged to corporation tax for the accounting period with the addition of any amount of income of the company which would be charged to corporation tax for the accounting period but for section 231, 232, 233 or 234, or section 71 of the Corporation Tax Act, 1976; and, for the purposes of this definition &#8211;<\/p>\n<p>(a)the income of a company for an accounting period shall be taken to be the amount of its profits for that period on which corporation tax falls finally to be borne exclusive of the part of the profits attributable to chargeable gains, and<\/p>\n<p>(b)the part referred to in paragraph (a) shall be taken to be the amount brought into the company&#8217;s profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description,<\/p>\n<p>S is the amount of the corporation tax which, before any set-off of or credit for tax, including foreign tax, and after any relief under section 448 or paragraph 16 or 18 of Schedule 32, or section 58 of the Corporation Tax Act, 1976, is chargeable for the accounting period, exclusive of the corporation tax, before any credit for foreign tax, chargeable on the part of the company&#8217;s profits attributable to chargeable gains for that period; and that part shall be taken to be the amount brought into the company&#8217;s profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description, and<\/p>\n<p>T is the amount of the distributions received by the company in the accounting period which is included in its franked investment income of the accounting period with the addition of any amount received by the company in the accounting period to which section 140(3)(a), 141(3)(a), 142(4) or 144(3)(a) applies.<\/p>\n<p>(9)Subsections (8) and (9) of section 140 shall apply for the purposes of this section as they apply for purposes of that section.<\/p>\n<p>145. Distributions out of profits from export of certain goods.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)This section shall apply to a distribution (in this section referred to as a &#8220;relevant distribution&#8221;) made before the 6th day of April, 1999, being a distribution made or deemed to have been made by a company for an accounting period wholly or in part out of &#8211;<\/p>\n<p>(a)the company&#8217;s income for the accounting period the corporation tax in respect of which has been reduced under Part IV of the Corporation Tax Act, 1976, or<\/p>\n<p>(b)a distribution or distributions received by the company in the accounting period in respect of which the tax credit is determined in accordance with this section.<\/p>\n<p>(2)<\/p>\n<p>(a)Where a relevant distribution is made or is deemed for the purposes of this section to have been made by a company for an accounting period, the tax credit to which the recipient of the relevant distribution is entitled in respect of it shall be an amount arrived at by applying a fraction determined by the formula &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>to the amount of the relevant distribution,<\/p>\n<p>where &#8211;<\/p>\n<p>Ais an amount arrived at by applying to the amount of the company&#8217;s distributable income for the accounting period, excluding distributions received by the company in that period, the fraction &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where D is the standard credit rate per cent for the year of assessment in which the relevant distribution is made reduced in the same proportion as the company&#8217;s liability to corporation tax on its income (other than its income from the sale of goods within the meaning of section 448) for the accounting period is reduced under section 58 of the Corporation Tax Act, 1976, subject to paragraph (c) of the proviso to section 182(3), and paragraph (iii) of the proviso to section 184(3), of that Act,<\/p>\n<p>Bis the aggregate of the tax credits in respect of the amount referred to in subsection (4)(a)(ii), and<\/p>\n<p>Cis the amount of the company&#8217;s distributable income for the accounting period.<\/p>\n<p>(b)The reference to certain tax credits in the definition of &#8216;B&#8217; in paragraph (a) shall, in relation to distributions received by a company which makes a distribution to which this section applies, be construed &#8211;<\/p>\n<p>(i)as a reference to such tax credits multiplied by.2295 in so far as they are tax credits in respect of distributions made before the 6th day of April, 1978, or made after the 5th day of April, 1983, and before the 6th day of April, 1988,<\/p>\n<p>(ii)as a reference to such tax credits multiplied by.2883 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1978, and before the 6th day of April, 1983,<\/p>\n<p>(iii)as a reference to such tax credits multiplied by.2626 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1988, and before the 6th day of April, 1989,<\/p>\n<p>(iv)as a reference to such tax credits multiplied by.3178 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1989, and before the 6th day of April, 1991,<\/p>\n<p>(v)as a reference to such tax credits multiplied by.3707 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1991, and before the 6th day of April, 1995,<\/p>\n<p>(vi)as a reference to such tax credits multiplied by.4137 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1995, and before the 6th day of April, 1997, and<\/p>\n<p>(vii)as a reference to such tax credits multiplied by.4649 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1997, and before the 3rd day of December, 1997.<\/p>\n<p>(3)For the purposes of this section &#8211;<\/p>\n<p>(a)where the total amount of the distributions made by a company for an accounting period exceeds the distributable income of the company for that accounting period, the excess shall be deemed for the purposes of this section to be a distribution for the immediately preceding accounting period;<\/p>\n<p>(b)where the total amount of the distributions made or deemed under paragraph (a) to have been made by a company for the immediately preceding accounting period referred to in paragraph (a) exceeds the distributable income of the company for that accounting period, the excess shall be deemed to be a distribution for the next immediately preceding accounting period and so on;<\/p>\n<p>(c)where the total amount of the distributions made or deemed under this subsection to have been made for the first accounting period for which the company came within the charge to corporation tax exceeds the distributable income of the company for that accounting period &#8211;<\/p>\n<p>(i)the excess shall be deemed to be a distribution for the company&#8217;s period of account which ended on the accounting date last before the 6th day of April, 1975, or, if there was no such period of account, to be a distribution for the year which ended on the 5th day of April, 1976, and<\/p>\n<p>(ii)the tax credit in respect of the excess which is so deemed shall be an amount equal to the amount of income tax which under section 410 of the Income Tax Act, 1967, the company would have been entitled to deduct from a dividend of such an amount as after deduction of that tax would equal the amount of the excess, and for this purpose it shall be assumed that the dividend was paid on the 5th day of April, 1976, and was in respect of such period of account or year which ended on the 5th day of April, 1976, as the case may be,<\/p>\n<p>but the tax credit in respect of a distribution to which subparagraph (i) applies shall not exceed the amount which would be the amount of the tax credit in respect of the distribution if that tax credit were determined in accordance with section 136(2).<\/p>\n<p>(4)<\/p>\n<p>(a)For the purposes of this section, the distributable income of a company for an accounting period shall be the aggregate of the following amounts &#8211;<\/p>\n<p>(i)the income of the company charged to corporation tax for the accounting period less the amount of corporation tax payable by the company for the accounting period which is attributable to that income, and<\/p>\n<p>(ii)an amount equal to the distributions received by the company in the accounting period which is comprised in its franked investment income of the accounting period, other than franked investment income against which relief is given under section 83(5), 157 or 158, and which relief was not subsequently withdrawn under those sections.<\/p>\n<p>(b)For the purposes of paragraph (a), the income of a company for an accounting period shall be taken to be the amount of its profits for that period on which corporation tax falls finally to be borne exclusive of the part of the profits attributable to chargeable gains, and that part shall be taken to be the amount brought into the company&#8217;s profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description.<\/p>\n<p>(5)Where the distributable income of a company for an accounting period is to be determined for the purposes of this section in relation to a distribution made by the company for that accounting period (in this subsection referred to as &#8220;the first-mentioned distribution&#8221;), there shall be deducted from the aggregate mentioned in subsection (4)(a) the aggregate of the following amounts &#8211;<\/p>\n<p>(a)the amount of the company&#8217;s income which, in relation to the first-mentioned distribution, is to be taken into account in the definition of &#8220;A&#8221; in section 147 (1) (before any reduction under paragraph 5(2)(i) or 6(2)(i) of Schedule 32) as income of the company for the relevant accounting period (within the meaning of Part 14) which coincides with or is included in that accounting period, less the amount of corporation tax to be taken into account in the definition of &#8220;B&#8221; in section 147(1) in respect of that amount of the company&#8217;s income, and<\/p>\n<p>(b)an amount equal to the distributions received by the company in the accounting period which are relevant distributions within the meaning of section 147, and which are to be included within the definition of &#8220;E&#8221; in subsection (1) of that section in relation to the first-mentioned distribution.<\/p>\n<p>(6)Where a period of account for or in respect of which a company makes a distribution is not an accounting period and part of the period of account falls within an accounting period, the proportion of the distribution to be treated for the purposes of this section as being for or in respect of the accounting period shall be the same proportion as that part of the period of account bears to the whole of that period.<\/p>\n<p>(7)Where a company makes a distribution which is not expressed to be for or in respect of a specified period, the distribution shall be treated for the purposes of this section as having been made for the accounting period in which it is made.<\/p>\n<p>(8)Where the income of a company for an accounting period includes a dividend from which income tax was deducted under section 456 of the Income Tax Act, 1967, then, for the purposes of this section, the amount of tax so deducted shall be deemed to be a tax credit in respect of a distribution of an amount equal to the amount of the dividend reduced by the amount of tax so deducted.<\/p>\n<p>(9)In relation to a relevant distribution (other than a supplementary distribution under section 146), section 152 shall apply so that the statements provided for by that section shall show, in addition to the particulars to be given apart from this section, the amount of the tax credit which would apply in respect of the distribution if it were not a relevant distribution.<\/p>\n<p>(10)The inspector may by notice in writing require a company to furnish him or her with such information or particulars as may be necessary for the purposes of subsections (1) to (9), and, if the company does not comply with the requirements of the notice, it shall be liable to a penalty of \u00a3800.<\/p>\n<p>(11)<\/p>\n<p>(a)In this subsection, &#8220;the relieved amount&#8221; means so much of a relevant distribution as is determined by the formula &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>Eis the amount of the distribution,<\/p>\n<p>Fis the amount of the tax credit in respect of the distribution, and<\/p>\n<p>Gis the standard credit rate per cent for the purposes of section 136(2) in respect of the year of assessment in which the distribution is made.<\/p>\n<p>(b)Notwithstanding any other provision of the Tax Acts, for the purposes of determining a person&#8217;s liability, if any, to income tax in respect of distributions received by such person, so much of a relevant distribution as is the relieved amount shall be treated as a separate distribution received by the person in respect of which such person shall not be entitled to a tax credit, and the remainder, if any, of the relevant distribution shall be treated as a separate distribution received by such person in respect of which the tax credit shall be the tax credit in respect of the relevant distribution.<\/p>\n<p>146. Provisions supplementary to section 145.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)Where a company makes a distribution in respect of any right or obligation to which section 139 relates and the tax credit in respect of that distribution is calculated in accordance with section 145, the company shall make a supplementary distribution of an amount equal to the excess of the amount of the tax credit which would have applied to the distribution if section 145 had not been enacted over the amount of the tax credit which in accordance with section 145 applies to the distribution, and the person to whom the distribution and the supplementary distribution are made shall be regarded as having received one distribution consisting of the aggregate of the distribution and the supplementary distribution.<\/p>\n<p>(2)Notwithstanding section 136, the recipient of a supplementary distribution under subsection (1) shall not be entitled to a tax credit in respect of it.<\/p>\n<p>(3)In relation to any supplementary distribution within the meaning of subsection (1), section 152(1) shall apply to the company so that the statement required by that section shall show, in addition to the particulars required to be given apart from this section, the separate amount of such supplementary distribution.<\/p>\n<p>Chapter 5 Distributions out of certain income of manufacturing companies (ss. 147-151)<br \/>\n147. Distributions.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)<\/p>\n<p>(a)There shall be treated as a specified distribution for the purposes of subsection (4) so much of a distribution (in this paragraph referred to as &#8220;the first-mentioned distribution&#8221;) treated under subsection (2) or section 154 as made by a company for an accounting period as does not exceed the amount, which may be nil, determined by the formula &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where, subject to sections 148 and 149 and paragraphs 5 and 6 of Schedule 32 &#8211;<\/p>\n<p>Ais the amount of the company&#8217;s income, the corporation tax referable to which is reduced under section 448, for the relevant accounting period which coincides with or is included in the accounting period,<\/p>\n<p>Bis the amount of the corporation tax, as reduced under section 448, referable to the amount mentioned in the definition of &#8220;A&#8221;,<\/p>\n<p>Eis the amount of the relevant distributions, whether made before the 6th day of April, 1989, or on or after that day, received by the company in the accounting period, which is included in its franked investment income of the accounting period, other than franked investment income against which relief is given under section 83(5), 157 or 158, and which relief was not subsequently with drawn under those sections,<\/p>\n<p>Ris the amount of the income of the company charged to corporation tax for the accounting period within the meaning of section 145(4)(b), with the addition of any amount of income of the company which would be charged to corporation tax for the accounting period but for section 231, 232, 233 or 234, or section 71 of the Corporation Tax Act, 1976,<\/p>\n<p>Sis the amount of the corporation tax which, before any set-off of or credit for tax, including foreign tax, and after any relief under section 448 or paragraph 16 or 18 of Schedule 32, or section 58 of the Corporation Tax Act, 1976, is chargeable for the accounting period, exclusive of the corporation tax, before any credit for foreign tax, chargeable on the part of the company&#8217;s profits attributable to chargeable gains for that period; and that part shall be taken to be the amount brought into the company&#8217;s profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description,<\/p>\n<p>Tis the amount of the distributions received by the company in the accounting period which is included in its franked investment income of the accounting period, other than franked investment income against which relief is given under section 83(5), 157 or 158, and which relief was not subsequently withdrawn under those sections, with the addition of any amount received by the company in the accounting period to which section 140(3), 141(3), 142(4) or 144(3)(a) applies,<\/p>\n<p>Uis the amount of relevant distributions made by the company before the 6th day of April, 1989, which &#8211;<\/p>\n<p>(i)were made for the accounting period, or<\/p>\n<p>(ii)would be deemed to have been made for the accounting period by virtue of subsections (3) and (7) of section 145 if &#8211;<\/p>\n<p>(I)subsections (3) and (7) of that section were treated as applying for the purposes of this definition as they apply for the purposes of that section, and<\/p>\n<p>(II)&#8221;relevant distribution&#8221; and &#8220;distributable manufacturing income&#8221; were substituted for &#8220;distribution&#8221; and &#8220;distributable income&#8221; respectively wherever those terms occur in subsections (3) and (7) of that section,<\/p>\n<p>Wis the amount of the distributions made by the company before the 6th day of April, 1989, which &#8211;<\/p>\n<p>(i)were made for the accounting period, or<\/p>\n<p>(ii)would be deemed to have been made for the accounting period by virtue of subsections (3) and (7) of section 145 if &#8211;<\/p>\n<p>(I)subsections (3) and (7) of that section were treated as applying for the purposes of this definition as they apply for the purposes of that section, and<\/p>\n<p>(II)every reference to &#8220;distributable income of the company&#8221; in subsection (3) of that section were a reference to the amount determined by the formula &#8211;<\/p>\n<p>(R \u2212 S) + T<\/p>\n<p>where R, S and T have the same meanings as otherwise in this paragraph,<\/p>\n<p>and<\/p>\n<p>Yis the amount of the first-mentioned distribution,<\/p>\n<p>(b)Any reference in this section to a relevant distribution &#8211;<\/p>\n<p>(i)made by a company before the 6th day of April, 1989, shall be construed as a reference to a relevant distribution within the meaning of paragraph 4 of Schedule 32, and<\/p>\n<p>(ii)made by a company on or after the 6th day of April, 1989, shall be construed as a reference to a relevant distribution within the meaning of subsection (4).<\/p>\n<p>(c)For the purposes of this Chapter, &#8220;relevant accounting period&#8221; has the same meaning as it has for the purposes of Part 14.<\/p>\n<p>(2)<\/p>\n<p>(a)For the purposes of this subsection and subsections (1) and (4) and irrespective of the period of account for which a distribution is made by a company, a distribution or distributions, as the case may be, made by the company on a day (in this subsection referred to as &#8220;the first-mentioned day&#8221;) falling on or after the 6th day of April, 1989, shall be treated as having been made for the most recent accounting period of the company ending before the first-mentioned day; but, where a distribution made by a company is &#8211;<\/p>\n<p>(i)a distribution by virtue only of subparagraph (ii), (iii) (I) or (v) of Section 130(2)(d), or<\/p>\n<p>(ii)a distribution made in respect of shares of a type referred to in paragraph (c) of the definition of &#8220;preference shares&#8221; in section 138(1),<\/p>\n<p>the distribution shall be treated, subject to paragraphs (b) to (d), as having been made for the accounting period in which the first-mentioned day falls.<\/p>\n<p>(b)<\/p>\n<p>(i)Where the first-mentioned day falls in an accounting period of the company which begins on the day on which the company commenced to be within the charge to corporation tax, the distribution or distributions, as the case may be, shall be treated as made for that accounting period and, where the total amount of distributions made by the company on or after the 6th day of April, 1989, which are treated as having been made for that accounting period would otherwise exceed the amount of the distributable income of the company for that accounting period, the excess shall be treated as a distribution or distributions, as the case may be, which has not or have not been made for any accounting period.<\/p>\n<p>(ii)Where the first-mentioned day falls on or after the first day of an accounting period of the company which ends on a day on which the company ceases to be within the charge to corporation tax, the distribution or distributions, as the case may be, shall be treated as made for that accounting period.<\/p>\n<p>(c)<\/p>\n<p>(i)Where the total amount of distributions made by the company on or after the 6th day of April, 1989, which are treated as having been made for an accounting period, would otherwise exceed the amount of the distributable income of the company for that accounting period, the excess shall be treated as a distribution or distributions, as the case may be, made for the immediately preceding accounting period of the company.<\/p>\n<p>(ii)Where the total amount of distributions made by the company on or after the 6th day of April, 1989, which are treated as having been made for the immediately preceding accounting period referred to in subparagraph (i), would otherwise exceed the amount of the distributable income of the company for that accounting period, the excess shall be treated as a distribution or distributions, as the case may be, made for the immediately preceding accounting period of the company, and so on.<\/p>\n<p>(d)Where by virtue of the application of this subsection to the distribution or distributions, as the case may be, made by the company on the first-mentioned day there is an excess mentioned in paragraphs (b) and (c), that excess &#8211;<\/p>\n<p>(i)where there is only one distribution made by the company on the first-mentioned day, shall be wholly attributed to that distribution, or<\/p>\n<p>(ii)where there is more than one distribution so made on the first-mentioned day, shall be partly attributed to each of those distributions in the same respective proportion as the amount of each such distribution bears to the total amount of the distributions made by the company on that day,<\/p>\n<p>so that any distribution made by the company on the first-mentioned day shall be treated as consisting of 2 or, if there is more than one such excess, more distributions each of which is made by the company for a different accounting period (if any).<\/p>\n<p>(3)For the purposes of this section &#8211;<\/p>\n<p>(a)the amount of the distributable income of a company for an accounting period shall be the amount determined by the formula &#8211;<\/p>\n<p>(R \u2212 S) + T \u2212 W<\/p>\n<p>where R, S, T and W have the same meanings respectively as in subsection (1), and<\/p>\n<p>(b)the amount of the distributable manufacturing income of a company for an accounting period shall be the amount determined by the formula &#8211;<\/p>\n<p>(A \u2212 B) + E<\/p>\n<p>where A, B and E have the same meanings respectively as in subsection (1).<\/p>\n<p>(4)Where a distribution made by a company on or after the 6th day of April, 1989 (in this subsection referred to as &#8220;the first-mentioned distribution&#8221;), is treated for the purposes of this subsection as &#8211;<\/p>\n<p>(a)consisting of or including a specified distribution, or<\/p>\n<p>(b)consisting of 2 or more distributions, one or more of which is treated as consisting of or including a specified distribution,<\/p>\n<p>the first-mentioned distribution shall, notwithstanding any other provision of the Corporation Tax Acts, be treated for the purposes of those Acts as if it consists of 2 distributions, either but not both of which may be nil, being respectively &#8211;<\/p>\n<p>(i)a distribution, which shall be a relevant distribution for the purposes of this section, of an amount equal to the amount of the specified distribution mentioned in paragraph (a) or equal to the total amount of the specified distributions mentioned in paragraph (b), as the case may be, and<\/p>\n<p>(ii)a distribution which is not a relevant distribution and which consists of the balance of the first-mentioned distribution.<\/p>\n<p>(5)<\/p>\n<p>(a)The tax credit to which a recipient of a relevant distribution made before the 6th day of April, 1999, is entitled in respect of it shall, notwithstanding any provision of the Corporation Tax Acts other than this section, be an amount equal to one-eighteenth of the amount of the relevant distribution.<\/p>\n<p>(b)Where as respects an accounting period corporation tax payable by a company is by virtue of subsection (7) of section 448 reduced by the revised relief (within the meaning of that subsection), the tax credit in respect of a distribution treated for the purposes of this section as made for the accounting period shall be an amount determined by the formula &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>Fis the amount or value of the distribution, and<\/p>\n<p>Gis an amount determined by the formula &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>His the corporation tax payable by the company for the accounting period, in so far as it is referable to income from the sale of those goods (within the meaning of section 448), after deducting from that tax such amount as is to be deducted under section 448, and<\/p>\n<p>Jis the income from the sale of those goods.<\/p>\n<p>(6)The tax credit (if any) to which the recipient of a distribution to which subsection (4) (ii) applies is entitled in respect of the distribution shall be calculated in accordance with the Corporation Tax Acts other than subsection (5).<\/p>\n<p>(7)In relation to a relevant distribution, including part of a distribution treated under subsection (4) as a relevant distribution, made by a company, section 152 shall apply to the company so that the statements provided for by that section shall show as respects each such distribution, in addition to the particulars required to be given apart from this subsection, that the distribution is a relevant distribution for the purposes of this section.<\/p>\n<p>(8)<\/p>\n<p>(a)Where it appears to the inspector that the amount of tax credit to which the recipient of a relevant distribution, including part of a distribution treated under subsection (4) as a relevant distribution, was shown to be entitled on the statement annexed to or accompanying any warrant or cheque or other order mentioned in section 152(1), or in any statement mentioned in section 152(3), exceeds the amount of the tax credit to which the recipient of the statement should have been shown to be entitled on that statement by reference to this section and section 150, the inspector may make an assessment to income tax on the company under Case IV of Schedule D for the year of assessment in which the statement is made on an amount the income tax on which, at the standard rate for that year of assessment, is equal to the amount by which the tax credit shown in the statement exceeds the tax credit to which the recipient of that statement should have been shown to be entitled on that statement.<\/p>\n<p>(b)Any amount on which by virtue of this subsection income tax is charged on a company by an assessment under Case IV of Schedule D shall not be regarded as income of the company for any purpose of the Tax Acts.<\/p>\n<p>(c)This subsection shall not apply if the inspector is, or on appeal the Appeal Commissioners are, satisfied that, either by reason of a correction by the company of the statement annexed to or accompanying the relevant warrant or cheque or other order mentioned in section 152(1), or of the statement mentioned in section 152(3), or for any other good and sufficient reason, it would be just and reasonable that this subsection should not apply.<\/p>\n<p>(9)The inspector may by notice in writing require a company to furnish him or her with such information or particulars as may be necessary for the purposes of this section and, if the company does not comply with the requirements of the notice, it shall be liable to a penalty of \u00a31,200.<\/p>\n<p>148. Treatment of certain deductions in relation to relevant distributions.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)In this section, &#8220;relevant deduction&#8221;, in relation to a relevant accounting period of a company, means any amount allowed as a deduction against the total profits of the company in that period in respect of &#8211;<\/p>\n<p>(a)charges on income,<\/p>\n<p>(b)group relief,<\/p>\n<p>(c)any allowance in respect of capital expenditure to which effect is given for that period under section 308(4),<\/p>\n<p>(d)any loss in respect of which the profits of that period are treated as reduced under section 396(2), or<\/p>\n<p>(e)other amounts which under the Corporation Tax Acts may be deducted from or set against or treated as reducing profits of more than one description.<\/p>\n<p>(2)Where for any relevant accounting period of a company &#8211;<\/p>\n<p>(a)the corporation tax referable to the income of the company from the sale of goods is to be reduced under section 448, and<\/p>\n<p>(b)a relevant deduction has been allowed against the total profits in computing the corporation tax chargeable,<\/p>\n<p>then, the amount of the company&#8217;s income to be taken into account in the definition of &#8220;A&#8221; in section 147(1) in respect of that relevant accounting period shall be reduced by an amount equal to such part of the relevant deduction as bears to the whole the same proportion as the amount of the income of the company from the sale of goods bears to the total income brought into charge to corporation tax for the relevant accounting period.<\/p>\n<p>149. Dividends and other distributions at gross rate or of gross amount.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)Where a company makes a distribution which is a relevant distribution for the purposes of section 147, including part of a distribution treated under section 147(4) as a relevant distribution, and which is in respect of any right or obligation to which section 139 applies, the company shall make a supplementary distribution of an amount equal to the excess of the amount of the tax credit which would have applied in respect of the relevant distribution, if section 147(5) had not been enacted, over the amount of the tax credit which in accordance with section 147(5) applies to the relevant distribution.<\/p>\n<p>(2)Where the whole or part of a supplementary distribution under subsection (1) which is a relevant distribution for the purposes of section 147 is received by a company in an accounting period, then, for the purposes of that section &#8211;<\/p>\n<p>(a)the whole or part, as the case may be, of the supplementary distribution shall be an amount taken into account under the definition of &#8220;E&#8221;, and<\/p>\n<p>(b)the whole of the supplementary distribution shall be an amount taken into account under the definition of &#8220;T&#8221;,<\/p>\n<p>in the formulae in subsections (1) and (3) of section 147.<\/p>\n<p>(3)Notwithstanding section 136, the recipient of a supplementary distribution under subsection (1) shall not be entitled to a tax credit in respect of it.<\/p>\n<p>(4)In relation to any supplementary distribution within the meaning of subsection (1), section 152(1) shall apply to the company so that the statement required by that section shall show, in addition to the particulars required to be given apart from this section, the separate amount of such supplementary distribution.<\/p>\n<p>150. Tax credit for recipients of certain distributions.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)This section shall apply to a distribution made before the 6th day of April, 1999, by a company which carries on a specified trade (being a specified trade within the meaning of section 133(1)) and which is a distribution by virtue only of subparagraph (ii), (iii) (I) or (v) of section 130(2)(d).<\/p>\n<p>(2)Where a distribution to which this section applies or part of such a distribution is not otherwise a relevant distribution for the purposes of section 147(5), then, notwithstanding any provision to the contrary in section 147, the distribution or part of it, as the case may be, shall be deemed for the purposes of section 147(5) to be a relevant distribution.<\/p>\n<p>151. Appeals.<br \/>\nRepealed from 6 April 1999<br \/>\nAn appeal to the Appeal Commissioners shall lie on any question arising under this Chapter in the like manner as an appeal would lie against an assessment to corporation tax, and the provisions of the Tax Acts relating to appeals shall apply accordingly.<\/p>\n<p>Chapter 6 Distributions &#8211; supplemental (ss. 152-155)<br \/>\n152.<\/p>\n<h4>Explanation of tax credit to be annexed to interest and dividend warrants.<\/h4>\n<p>(1)Every warrant, cheque or other order drawn or made, or purporting to be drawn or made, in payment by any company of any dividend, or of any interest which is a distribution, shall have annexed to it or be accompanied by a statement in writing showing &#8211;<\/p>\n<p>(a)the amount of the dividend (distinguishing a dividend or any part of it which is paid out of capital profits of the company) or interest paid, and<\/p>\n<p>(b)[deleted]<\/p>\n<p>(c)the period for which that dividend or interest is paid.<\/p>\n<p>(2)Where a company fails to comply with any of the provisions of subsection (1), the company shall incur a penalty of \u20ac200 in respect of each failure, but the aggregate amount of the penalties imposed under this section on any company in respect of all such failures connected with any one distribution of dividends or interest shall not exceed \u20ac2,000.<\/p>\n<p>(3)<\/p>\n<p>(a)A company which makes a distribution (not being a distribution to which subsection (1) refers) shall, if the recipient so requests in writing, furnish to the recipient a statement in writing showing the amount or value of the distribution.<\/p>\n<p>(b)The duty imposed by this subsection shall be enforceable at the suit or instance of the person requesting the statement.<\/p>\n<p>153.<\/p>\n<h4>Distributions to certain non-residents.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;EEA Agreement&#8217; means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement;<\/p>\n<p>&#8216;EEA state&#8217; means a state which is a contracting party to the EEA Agreement;<\/p>\n<p>&#8216;qualifying non-resident person&#8217;, in relation to a distribution, means the person beneficially entitled to the distribution, being &#8211;<\/p>\n<p>(a)a person, other than a company, who &#8211;<\/p>\n<p>(i)is neither resident nor ordinarily resident in the State, and<\/p>\n<p>(ii)is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory,<\/p>\n<p>(b)a company which is not resident in the State and &#8211;<\/p>\n<p>(i)is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory, but is not under the control, whether directly or indirectly, of a person or persons who is or are resident in the State,<\/p>\n<p>(ii)is under the control, whether directly or indirectly, of a person or persons who, by virtue of the law of a relevant territory, is or are resident for the purposes of tax in the relevant territory and who is or are, as the case may be, not under the control, whether directly or indirectly, of a person who is, or persons who are, not so resident, or<\/p>\n<p>(iii)the principal class of the shares of which, or &#8211;<\/p>\n<p>(I)where the company is a 75 per cent subsidiary of another company, of that other company, or<\/p>\n<p>(II)where the company is wholly-owned by 2 or more companies, of each of those companies,<\/p>\n<p>is substantially and regularly traded on one or more than one recognised stock exchange in a relevant territory or territories or on such other stock exchange as may be approved of by the Minister for Finance for the purposes of this section, or<\/p>\n<p>(c)a scheme referred to in section 172C(2)(bd);<\/p>\n<p>&#8216;relevant territory&#8217; means &#8211;<\/p>\n<p>(a)a Member State of the European Communities or an EEA state, other than the State,<\/p>\n<p>(b)not being such a Member State or an EEA state, a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or<\/p>\n<p>(c)not being a territory referred to in paragraph (a) or (b), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;<\/p>\n<p>&#8216;tax&#8217;, in relation to a relevant territory, means any tax imposed in that territory which corresponds to income tax or corporation tax in the State.<\/p>\n<p>(1A)For the purposes of paragraph (b)(i) of the definition of &#8216;qualifying non-resident person&#8217;, &#8216;control&#8217; shall be construed in accordance with subsections (2) to (6) of section 432 as if in subsection (6) of that section for &#8216;5 or fewer participators&#8217; there were substituted &#8216;persons resident in the State&#8217;.<\/p>\n<p>(2)For the purposes of paragraph (b)(ii) of the definition of &#8216;qualifying non-resident person&#8217; in subsection (1), &#8216;control&#8217; shall be construed in accordance with subsections (2) to (6) of section 432 as if in subsection (6) of that section for &#8216;5 or fewer participators&#8217; there were substituted &#8211;<\/p>\n<p>(a)in so far as the first mention of &#8216;control&#8217; in that paragraph is concerned, &#8216;persons who, by virtue of the law of a relevant territory (within the meaning assigned by section 153), are resident for the purposes of tax in such a relevant territory (within that meaning) &#8216;, and<\/p>\n<p>(b)in so far as the second mention of &#8216;control&#8217; in that paragraph is concerned, &#8216;persons who are not resident for the purposes of tax in a relevant territory (within that meaning) &#8216;.<\/p>\n<p>(3)For the purposes of paragraph (b)(iii)(I) of the definition of &#8216;qualifying non-resident person&#8217; in subsection (1), sections 412 to 418 shall apply as those sections would apply for the purposes of Chapter 5 of Part 12 if section 411(1)(c) were deleted.<\/p>\n<p>(3A)For the purposes of paragraph (b)(iii)(II) of the definition of &#8216;qualifying non-resident person&#8217;, a company (in this subsection referred to as an &#8216;aggregated 100 per cent subsidiary&#8217;) shall be treated as being wholly-owned by 2 or more companies (in this subsection referred to as the &#8216;joint parent companies&#8217;) if and so long as 100 per cent of its ordinary share capital is owned directly or indirectly by the joint parent companies, and for the purposes of this subsection &#8211;<\/p>\n<p>(a)subsections (2) to (10) of section 9 shall apply as those subsections apply for the purposes of that section, and<\/p>\n<p>(b)sections 412 to 418 shall apply with any necessary modifications as those sections would apply for the purposes of Chapter 5 of Part 12 if &#8211;<\/p>\n<p>(i)section 411(1)(c) were deleted, and<\/p>\n<p>(ii)the following subsection were substituted for subsection (1) of section 412:<\/p>\n<p>(1)Notwithstanding that at any time a company is an aggregated 100 per cent subsidiary (within the meaning assigned by section 153(3A)) of the joint parent companies (within the meaning so assigned), it shall not be treated at that time as such a subsidiary unless additionally at that time &#8211;<\/p>\n<p>(a)the joint parent companies are between them beneficially entitled to not less than 100 per cent of any profits available for distribution to equity holders of the company, and<\/p>\n<p>(b)the joint parent companies would be beneficially entitled between them to not less than 100 per cent of any assets of the company available for distribution to its equity holders on a winding-up.&#8217;.<\/p>\n<p>(4)Subject to section 817X, where for any year of assessment the income of a person who for that year of assessment is a qualifying non-resident person includes an amount in respect of a distribution made by a company resident in the State &#8211;<\/p>\n<p>(a)income tax shall not be chargeable in respect of that distribution, and<\/p>\n<p>(b)the amount or value of the distribution shall be treated for the purposes of sections 237 and 238 as not brought into charge to income tax.<\/p>\n<p>(4A)Subsection (4) shall not apply to a property income dividend (within the meaning of section 705A).<\/p>\n<p>(5)Where, by virtue of section 831(5), Chapter 8A of Part 6 (other than section 172K) does not apply to a distribution made to a parent company (within the meaning of section 831) which is not resident in the State by its subsidiary (within the meaning of that section) which is a company resident in the State &#8211;<\/p>\n<p>(a)income tax shall not be chargeable in respect of that distribution, and<\/p>\n<p>(b)the amount or value of the distribution shall be treated for the purposes of sections 237 and 238 as not brought into charge to income tax.<\/p>\n<p>(6)Where for any year of assessment the income of a person, being an individual who for that year of assessment is neither resident nor ordinarily resident in the State but is not a qualifying non-resident person, includes an amount in respect of a distribution made by a company resident in the State, then &#8211;<\/p>\n<p>(a)notwithstanding section 15(2), income tax shall not be chargeable in respect of that distribution at a rate in excess of 25 per cent, and<\/p>\n<p>(b)the amount or value of the distribution shall be treated for the purposes of sections 237 and 238 as not brought into charge to income tax.<\/p>\n<p>154.<\/p>\n<h4>Attribution of distributions to accounting periods.<\/h4>\n<p>(1)<\/p>\n<p>(a)Notwithstanding sections 140, 141 and 144 but subject to subsections (2) and (3), where a company which makes a distribution specifies, by notice in writing given to the inspector within 6 months of the end of the accounting period in which the distribution is made, the extent to which the distribution is to be treated for the purposes of sections 140, 141 and 144 as made for any accounting period or periods, the distribution shall be so treated for those purposes irrespective of the period of account for which it was made.<\/p>\n<p>(b)A part of a distribution treated under paragraph (a) as made for an accounting period shall be treated for the purposes of sections 140, 141 and 144 as a separate distribution.<\/p>\n<p>(2)A company may specify in accordance with subsection (1) that only so much of a distribution, or more than one distribution, made on any day is made &#8211;<\/p>\n<p>(a)for any accounting period, as does not exceed the undistributed income of the company for that accounting period on that day, and<\/p>\n<p>(b)for an accounting period or accounting periods ending more than 9 years before that day, as does not exceed the amount by which the amount of the distribution or the aggregate amount of the distributions, as the case may be, exceeds the aggregate of the undistributed income of the company on that day for accounting periods ending before, but not more than 9 years before, that day.<\/p>\n<p>(3)Except where a distribution made by a company is &#8211;<\/p>\n<p>(a)an interim dividend paid before 1 January 2003 by the directors of the company, pursuant to powers conferred on them by the articles of association of the company, in respect of the profits of the accounting period in which it is paid,<\/p>\n<p>(b)a distribution by virtue only of subparagraph (ii), (iii)(I) or (v) of section 130(2)(d),<\/p>\n<p>(c)a distribution made in respect of shares of a type referred to in paragraph (c) of the definition of &#8220;preference shares&#8221; in section 138(1), or<\/p>\n<p>(d)made in an accounting period in which the company ceases or commences to be within the charge to corporation tax,<\/p>\n<p>the company shall not be entitled to specify in accordance with subsection (1) that the distribution is to be treated as made for the accounting period in which it is made.<\/p>\n<p>(4)[deleted]<\/p>\n<p>(5)[deleted]<\/p>\n<p>(6)For the purposes of this section, the amount of the undistributed income of a company for an accounting period shall be the amount determined by the formula &#8211;<\/p>\n<p>(R &#8211; S) + T &#8211; W,<\/p>\n<p>reduced by the amount of each distribution, or part of each distribution, made before the day in question and on or after 6 April 1989, which is to be treated under this section, or which was treated under section 147, as made for that accounting period,<\/p>\n<p>where &#8211;<\/p>\n<p>R, S and T have the same meanings respectively as in section 144(8), and W is the amount of the distributions made by the company before 6 April 1989, which &#8211;<\/p>\n<p>(a)were made for the accounting period,<\/p>\n<p>(b)are, by virtue of subsection (7), deemed to have been made for the accounting period, or<\/p>\n<p>(c)would be deemed to have been made for the accounting period by virtue of subsection (9) of section 140 if that subsection were treated as applying for the purposes of this section as it applies for the purpose of that section.<\/p>\n<p>(7)For the purposes of this section &#8211;<\/p>\n<p>(a)where the total amount of the distributions made by a company for an accounting period exceeds the amount determined by the formula &#8211;<\/p>\n<p>(R &#8211; S) + T<\/p>\n<p>for that accounting period (where R, S and T have the same meanings respectively as in section 144(8)), the excess shall be deemed for the purposes of this section to be a distribution for the immediately preceding accounting period, and<\/p>\n<p>(b)where the total amount of the distributions made or deemed under paragraph (a) to have been made by a company for the immediately preceding accounting period referred to in paragraph (a) exceeds the amount determined for that accounting period in accordance with the formula mentioned in paragraph (a), the excess shall be deemed to be a distribution for the immediately preceding accounting period and so on.<\/p>\n<p>155.<\/p>\n<h4>Restriction of certain reliefs in respect of distributions out of certain exempt or relieved profits.<\/h4>\n<p>(1)In this section, &#8220;distribution&#8221; has the same meaning as in the Corporation Tax Acts.<\/p>\n<p>(2)<\/p>\n<p>(a)This section shall apply to shares in a company where any agreement, arrangement or understanding exists which could reasonably be considered to eliminate the risk that the person beneficially owning those shares &#8211;<\/p>\n<p>(i)might, at or after a time specified in or implied by that agreement, arrangement or understanding, be unable to realise directly or indirectly in money or money&#8217;s worth an amount so specified or implied, other than a distribution, in respect of those shares, or<\/p>\n<p>(ii)might not receive an amount so specified or implied of distributions in respect of those shares.<\/p>\n<p>(b)The reference in this subsection to the person beneficially owning shares shall be deemed to be a reference to both that person and any person connected with that person.<\/p>\n<p>(c)For the purposes of this subsection, an amount specified or implied shall include an amount specified or implied in a foreign currency.<\/p>\n<p>(3)Where any person receives a distribution in respect of shares to which this section applies and, apart from the application of this subsection to the distribution, section 140(3)(a), 141(3)(a) or 144(3)(a) would apply to the distribution, then, notwithstanding any provision of the Tax Acts other than subsection (4) and for the purposes of those Acts &#8211;<\/p>\n<p>(a)none of those sections shall apply to the distribution, and<\/p>\n<p>(b)[deleted]<\/p>\n<p>(c)the distribution shall be treated as income chargeable to income tax or corporation tax, as the case may be, under Case IV of Schedule D.<\/p>\n<p>(4)Subsection (3) shall not apply to a distribution received &#8211;<\/p>\n<p>(a)by a company &#8211;<\/p>\n<p>(i)none of the shares of which is beneficially owned by a person resident in the State, and<\/p>\n<p>(ii)which, if this subsection had not been enacted, would not be chargeable to corporation tax in respect of any profits other than distributions which would be so chargeable by virtue of this section, or<\/p>\n<p>(b)by a person not resident in the State.<\/p>\n<p>(5)Notwithstanding subsection (4), the liability to income tax or corporation tax of any person resident in the State, other than a company to which paragraph (a) of that subsection relates, shall be determined as if that subsection had not been enacted.<\/p>\n<p>Chapter 7<\/p>\n<h4>Franked investment income (ss. 156-158)<\/h4>\n<p>156.<\/p>\n<h4>Franked investment income and franked payments.<\/h4>\n<p>(1)Income of a company resident in the State which consists of a distribution made by another company resident in the State shall be referred to in the Corporation Tax Acts as &#8216;franked investment income&#8217; of the company, and the amount of the franked investment income of such a company shall be the amount or value of the distribution.<\/p>\n<p>(2)A reference in the Corporation Tax Acts to a &#8216;franked payment&#8217; in relation to a company resident in the State which makes a distribution shall be construed as a reference to the amount or value of the distribution and references to any accounting or other period in which a franked payment is made are references to the period in which the distribution is made.<\/p>\n<p>157. Set-off of losses, etc. against franked investment income.<br \/>\nDeleted from 6 February 2003<br \/>\n(1)Where in any accounting period a company receives franked investment income and the amount of that income is calculated in accordance with subsection (1) (a) of section 156, the company may on making a claim for the purpose require that the franked investment income or part of the franked investment income shall for all or any of the purposes mentioned in subsection (2) be treated as if it were a like amount of profits chargeable to corporation tax and, subject to subsections (4) and (5), the company shall be entitled to have paid to it the value of the tax credit comprised in the income or in the part of the income so treated.<\/p>\n<p>(2)The purposes for which a claim may be made under subsection (1) shall be &#8211;<\/p>\n<p>(a)the deduction of charges on income under section 243;<\/p>\n<p>(b)the setting of certain capital allowances against total profits under section 308 (4);<\/p>\n<p>(c)the setting of trading losses against total profits under section 396 (2).<\/p>\n<p>(3)Where a company makes a claim under this section for any accounting period, the reduction to be made in profits of that accounting period shall be made as far as may be in profits chargeable to corporation tax rather than in the amount treated as profits so chargeable under this section.<\/p>\n<p>(4)Where a claim under this section relates to section 308 (4) or 396 (2) and an accounting period of the company falls partly before and partly within the time mentioned in section 308 (4) or 396 (2), as the case may be, then &#8211;<\/p>\n<p>(a)the restriction imposed by section 308 (4) or 396 (3) on the amount of the relief shall be applied only to any relief to be given apart from this section, and shall be applied without regard to any amount treated as profits of the accounting period under this section; but<\/p>\n<p>(b)relief under this section shall be given only against a part of the amount so treated proportionate to the part of the accounting period falling within the time mentioned in section 308 (4) or 396 (2), as the case may be.<\/p>\n<p>(5)<\/p>\n<p>(a)Subject to paragraph (b), where a company has obtained payment of a tax credit on a claim under this section or under section 83 (5) and apart from such a claim any amount could be set off against or deducted from profits of a subsequent accounting period, the company may claim that the amount shall be so set off or deducted; but in that case, to the extent to which the amount was used to obtain payment of a tax credit, such tax credit shall be recoverable from the company by an assessment on it to income tax under Case IV of Schedule D for the year of assessment in which the subsequent accounting period ends on an amount the income tax on which at the standard rate for that year of assessment is equal to the amount of such tax credit.<\/p>\n<p>(b)Relief under this subsection shall not be given against the profits of an accounting period if such relief could be given against the profits of an earlier accounting period.<\/p>\n<p>(6)Where a company makes a claim under subsection (5) in respect of an accounting period, any income tax payable by virtue of that subsection shall, for the purposes of the charge, assessment, collection and recovery from the company of that tax and of any interest or penalties on that tax, be treated and described as corporation tax payable by that company for that accounting period, notwithstanding that for the other purposes of the Tax Acts it is income tax.<\/p>\n<p>(7)The time limits for claims under this section shall be &#8211;<\/p>\n<p>(a)if and in so far as the purpose for which the claim is made is the deduction of charges on income under section 243 or the setting of capital allowances against total profits under section 308 (4), 2 years from the end of the accounting period in which the charges were paid or the capital allowances were to be made;<\/p>\n<p>(b)if and in so far as the purpose for which the claim is made is the setting of trading losses against total profits under section 396 (2), 2 years from the end of the accounting period in which the trading loss is incurred;<\/p>\n<p>(c)if the claim is a claim under subsection (5), 2 years from the end of the accounting period in respect of which the claim is made.<\/p>\n<p>(8)Any amount on which by virtue of this section income tax is charged on a company by an assessment under Case IV of Schedule D shall not be regarded as income of the company for any purpose of the Tax Acts.<\/p>\n<p>158. Set-off of loss brought forward or terminal loss against franked investment income in the case of financial concerns.<br \/>\nDeleted from 6 February 2003<br \/>\n(1)Where in any accounting period a company receives franked investment income and the amount of that income is calculated in accordance with subsection (1) (a) of section 156, the company, instead of or in addition to making a claim under section 157, may on making a claim for that purpose require that the franked investment income shall be taken into account for relief under section 396 (1) or 397 up to the amount of such income received in the accounting period which, if chargeable to corporation tax, would have been so taken into account by virtue of section 396 (6), and (subject to the restriction to the amount of franked investment income) subsections (2) to (7) shall apply where the company makes a claim under this section for any accounting period.<\/p>\n<p>(2)For the purposes of the claim, the amount to which the claim relates shall be treated as trading income of the accounting period.<\/p>\n<p>(3)<\/p>\n<p>(a)The reduction to be made in trading income of an accounting period shall be made as far as may be in trading income chargeable to corporation tax rather than in the amount treated as trading income so chargeable under this section.<\/p>\n<p>(b)Where the claim is made under section 397, the loss in the trade shall be set primarily against income chargeable to corporation tax (exclusive of income so treated as chargeable by this section) for the accounting periods referred to in section 397 (1), and the set-off of the loss against franked investment income provided for by this section shall apply to the balance only of such loss which has not been set off under section 397 (1) and the set-off against franked investment income of such balance of the loss as is referred to above shall be effected in a later rather than an earlier accounting period falling within the 3 years mentioned in section 397 (1).<\/p>\n<p>(4)Where a company has obtained payment to it of a tax credit by virtue of this section on a claim under section 396 (1) and apart from such a claim a loss could be set off against or deducted from profits of a subsequent accounting period, the company may claim that the loss shall be so set off or deducted; but in that case, to the extent to which the loss was used to obtain payment of a tax credit, such tax credit shall be recovered from the company by an assessment on it to income tax under Case IV of Schedule D for the year of assessment in which the subsequent accounting period ends on an amount the income tax on which at the standard rate for that year of assessment is equal to the amount of such tax credit, and the time limit for a claim under this subsection shall be 2 years from the end of the subsequent accounting period.<\/p>\n<p>(5)Where a company makes a claim under subsection (4) in respect of an accounting period, any income tax payable by virtue of that subsection shall, for the purposes of the charge, assessment, collection and recovery from the company of that tax and of any interest or penalties on that tax, be treated and described as corporation tax payable by that company for that accounting period, notwithstanding that for the other purposes of the Tax Acts it is income tax.<\/p>\n<p>(6)Where the claim relates to section 397 and an accounting period of the company falls partly outside the 3 years mentioned in subsection (1) of that section &#8211;<\/p>\n<p>(a)the restriction imposed by subsection (2) of that section on the amount of the reduction that may be made in the trading income of that period shall be applied only to any relief to be given apart from this section, and shall be applied without regard to any amount treated as trading income of the period by virtue of this section; but<\/p>\n<p>(b)relief under this section shall be given only against a part of the amount so treated proportionate to the part of the accounting period falling within the 3 years in question.<\/p>\n<p>(7)Any amount on which by virtue of this section income tax is charged on a company by an assessment under Case IV of Schedule D shall not be regarded as income of the company for any purpose of the Tax Acts.<\/p>\n<p>Chapter 8 Advance corporation tax (ss. 159-172)<br \/>\n159. Liability for advance corporation tax.<br \/>\nDeleted from 6 February 2003<br \/>\nExcept where otherwise provided for in this Chapter, where before the 6th day of April, 1999, a company resident in the State makes a distribution, the company shall be liable to make a payment of corporation tax (to be known as &#8220;advance corporation tax&#8221;) in accordance with this Chapter and, subject to section 162, the amount of advance corporation tax shall, whether or not the recipient of the distribution is a person entitled to a tax credit in respect of the distribution, be equal to the amount of the tax credit to which a recipient who is such a person is entitled in respect of the distribution.<\/p>\n<p>160. Set-off of advance corporation tax.<br \/>\nDeleted from 6 February 2003<br \/>\n(1)In this section, &#8220;surplus advance corporation tax&#8221;, in relation to an accounting period, means advance corporation tax which cannot be set against the company&#8217;s liability to corporation tax for that period because of a want or deficiency of income charged to corporation tax for that period or because of any relief from or reduction in the amount of corporation tax charged on such income for that period.<\/p>\n<p>(2)Advance corporation tax paid by a company (and not repaid) in respect of any distribution made by it in an accounting period shall be set, in so far as possible, against the company&#8217;s liability to corporation tax on any income charged to corporation tax for that accounting period and shall accordingly discharge a corresponding amount of that liability.<\/p>\n<p>(3)Where in the case of any accounting period of a company there is an amount of surplus advance corporation tax, the company may, within 2 years after the end of that period, claim to have the whole or any part of that amount treated for the purposes of this section (but not of any further application of this subsection) as if it were advance corporation tax paid in respect of distributions made by the company in any of its accounting periods ending in the period of 12 months immediately preceding that accounting period (but so that the amount which is the subject of the claim is set, in so far as possible, against the company&#8217;s liability for a more recent accounting period before a more remote one), and in so far as may be required corporation tax shall be repaid accordingly.<\/p>\n<p>(4)Where in the case of any accounting period of a company there is an amount of surplus advance corporation tax which has not been dealt with under subsection (3), that amount shall be treated for the purposes of this section (including any further application of this subsection) as if it were advance corporation tax paid in respect of distributions made by the company in the next accounting period.<\/p>\n<p>(5)For the purposes of this section, the income of a company charged to corporation tax for any accounting period shall be taken to be the amount of its profits for that period on which corporation tax falls finally to be borne exclusive of the part of the profits attributable to chargeable gains, and that part shall be taken to be the amount brought into the company&#8217;s profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description.<\/p>\n<p>(6)For the purposes of this section, a notice under section 884 may require the inclusion in the return to be delivered by a company under that section of particulars of any surplus advance corporation tax carried forward in relation to that company under subsection (4).<\/p>\n<p>(7)This section shall apply subject to sections 161 to 172.<\/p>\n<p>161. Rectification of excessive set-off of advance corporation tax.<br \/>\nDeleted from 6 February 2003<br \/>\nWhere an inspector discovers that any set-off of advance corporation tax under section 160 ought not to have been made, or is or has become excessive, the inspector may make any such assessments as may in his or her judgment be required for recovering any tax that ought to have been paid and generally for securing that the resulting liabilities to tax (including interest on unpaid tax) of the person concerned are what they would have been if only such set-offs had been made as ought to have been made.<\/p>\n<p>162. Calculation of advance corporation tax where company receives distributions.<br \/>\nDeleted from 6 February 2003<br \/>\n(1)In this section, references to a distribution or distributions shall not include references to a distribution or distributions &#8211;<\/p>\n<p>(a)made before the 9th day of February, 1983, or<\/p>\n<p>(b)treated under this Chapter as not being a distribution or distributions for the purposes of this section.<\/p>\n<p>(2)Where in any accounting period a company receives a distribution, the company shall not be liable to pay advance corporation tax in respect of distributions made by it in that period unless the aggregate amount of the tax credits in respect of the distributions made by the company in the period exceeds the aggregate amount of the tax credits in respect of distributions received by it in the period.<\/p>\n<p>(3)Where in any accounting period there is an excess referred to in subsection (2), the amount of advance corporation tax payable by the company in respect of distributions made by it in that period shall be equal to the excess.<\/p>\n<p>(4)Where the aggregate amount of the tax credits in respect of distributions received by a company in an accounting period exceeds the sum of &#8211;<\/p>\n<p>(a)the aggregate amount of the tax credits (if any) in respect of distributions made by the company in that period, and<\/p>\n<p>(b)the amount of any payment to the company under any provision of the Corporation Tax Acts of the tax credits in respect of distributions received by it in that period,<\/p>\n<p>the excess shall be carried forward to the next accounting period and be treated for the purposes of this section (including any further application of this subsection) as a tax credit in respect of a distribution received by the company in that period.<\/p>\n<p>(5)Where an inspector discovers that, because of the payment to a company of the tax credit in respect of a distribution received by it or for any other reason, the amount carried forward under subsection (4) to an accounting period (and treated as a tax credit in respect of a distribution received by the company in that period) is or has become excessive, the inspector may make any such assessments, adjustments or set-offs as may in his or her judgment be required for securing that the amount of advance corporation tax (including interest on unpaid tax) payable by the company in respect of distributions made by it in that period is the same as it would have been if only such an amount had been so carried forward as ought to have been carried forward.<\/p>\n<p>163. Tax credit recovered from company.<br \/>\nDeleted from 6 February 2003<br \/>\nWhere under the Corporation Tax Acts a company obtains payment of a tax credit in respect of a distribution received by it and that tax credit or any part of that tax credit is subsequently recovered from the company by an assessment on it to income tax under Case IV of Schedule D, the amount of the tax credit so recovered shall be treated for the purposes of section 162 as if it were a tax credit in respect of a distribution received by the company in the accounting period in which the amount is so recovered.<\/p>\n<p>164. Restrictions as to payment of tax credit.<br \/>\nDeleted from 6 February 2003<br \/>\n(1)Where &#8211;<\/p>\n<p>(a)by virtue of section 162 the amount of advance corporation tax payable by a company in respect of distributions made by it in an accounting period is less than the amount of advance corporation tax which would have been payable by the company in respect of those distributions if that section had not been enacted, and<\/p>\n<p>(b)either &#8211;<\/p>\n<p>(i)no amount is treated under section 162(4) as a tax credit in respect of a distribution received by the company in the accounting period, or<\/p>\n<p>(ii)the aggregate amount of the tax credits in respect of distributions made by the company in the accounting period is greater than the amount which is so treated under section 162(4),<\/p>\n<p>then, an amount of the tax credits in respect of distributions received by the company in the accounting period shall not be available for payment to the company under the Corporation Tax Acts, and the amount which is not so available shall be the aggregate amount of the tax credits in respect of distributions received by the company in the accounting period or, if it is less, an amount determined by the formula &#8211;<\/p>\n<p>A \u2212 B<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the aggregate amount of the tax credits in respect of distributions made by the company in the accounting period, and<\/p>\n<p>Bis the amount (if any) so treated under section 162(4).<\/p>\n<p>(2)For the purposes of subsection (1), account shall not be taken of any distribution treated as not being a distribution for the purposes of section 159 or 162 under any provision of this Chapter.<\/p>\n<p>165. Group dividends.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)<\/p>\n<p>(a)In this section &#8211;<\/p>\n<p>&#8220;trading or holding company&#8221; means a trading company or a company whose business consists wholly or mainly in the holding of shares or securities of trading companies which are its 90 per cent subsidiaries;<\/p>\n<p>&#8220;trading company&#8221; means a company whose business consists wholly or mainly of the carrying on of a trade or trades.<\/p>\n<p>(b)For the purposes of this section, a company shall be owned by a consortium if 75 per cent or more of the ordinary share capital of the company is beneficially owned between them by 5 or fewer companies of which none beneficially owns less than 5 per cent of that capital, and those companies are referred to in this section as &#8220;the members of the consortium&#8221;.<\/p>\n<p>(c)In determining for the purposes of this section whether one company is a 51 per cent subsidiary of another company, that other company shall be treated as not being the owner of &#8211;<\/p>\n<p>(i)any share capital which it owns directly or indirectly in a company not resident in the State, or<\/p>\n<p>(ii)any share capital which it owns indirectly and which is owned directly by a company for which a profit on the sale of the shares would be a trading receipt.<\/p>\n<p>(d)References in this section to a dividend or dividends received by a company shall apply to any received by another person on behalf of or in trust for the company but not to any received by the company on behalf of or in trust for another person.<\/p>\n<p>(e)References in this section to dividends shall be construed as including references to distributions on the redemption, repayment or purchase by a company of its own shares or on the acquisition of those shares by another company which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963) of the company, and references to the receipt of dividends or to the payment of dividends shall be construed accordingly.<\/p>\n<p>(2)<\/p>\n<p>(a)Where a company receives dividends from another company (both being companies resident in the State) and the company paying the dividends is &#8211;<\/p>\n<p>(i)a 51 per cent subsidiary of the other company or of a company so resident of which the other company is a 51 per cent subsidiary, or<\/p>\n<p>(ii)a trading or holding company owned by a consortium the members of which include the company receiving the dividends,<\/p>\n<p>then, subject to paragraph (b) and subsections (3) to (6) &#8211;<\/p>\n<p>(I)any such dividends shall be treated as not being distributions for the purposes of either section 159 or 162, and<\/p>\n<p>(II)the tax credits in respect of those dividends shall not be available for payment, under any provision of the Corporation Tax Acts, to the company by which the dividends are received.<\/p>\n<p>(b)The company paying the dividends may elect by notice in writing to the inspector that this section shall not apply in relation to any amount of dividends specified in the notice.<\/p>\n<p>(3)An election under subsection (2)(b) shall not be valid unless &#8211;<\/p>\n<p>(a)the election is made before the due date for the payment, by the company paying the dividends, of advance corporation tax for the accounting period in which the dividends are paid, and<\/p>\n<p>(b)the advance corporation tax in respect of those dividends has been paid.<\/p>\n<p>(4)Subsection (2) shall not apply to any dividend received by a company on any investments if a profit on the sale of those investments would be treated as a trading receipt of the company.<\/p>\n<p>(5)Where a company purports by virtue of subsection (2) to pay any dividend without paying advance corporation tax and advance corporation tax ought to have been paid, the inspector may make such assessments, adjustments or set-offs as may in his or her judgment be required for securing that the resulting liabilities to tax (including interest on unpaid tax) of the company paying and the company receiving the dividend are, in so far as possible, the same as they would have been if the advance corporation tax had been duly paid.<\/p>\n<p>(6)Where tax assessed under subsection (5) on the company which paid the dividend is not paid by that company before the expiry of 3 months from the date on which that tax is payable, that tax shall, without prejudice to the right to recover it from that company, be recoverable from the company which received the dividend.<\/p>\n<p>166. Surrender of advance corporation tax.<br \/>\nDeleted from 6 February 2003<br \/>\n(1)Where a company (in this section referred to as &#8220;the surrendering company&#8221;) has paid an amount of advance corporation tax in respect of a dividend or dividends paid by it in an accounting period and the advance corporation tax has not been repaid, and if throughout the accounting period the surrendering company would be treated as a member of a group of companies for the purposes of group relief under Chapter 5 of Part 12, the surrendering company may, on making a claim to the inspector, surrender the benefit of the whole or any part of that amount to any company (in this section referred to as &#8220;the recipient company&#8221;) which for the purposes of group relief would be treated as a member of the same group of companies throughout that accounting period or (in such proportions as the surrendering company may determine) to any 2 or more such companies.<\/p>\n<p>(2)Subject to subsections (4) and (5), where the benefit of any amount of advance corporation tax (in this section referred to as &#8220;the surrendered amount&#8221;) is surrendered under this section to a recipient company, then &#8211;<\/p>\n<p>(a)if the advance corporation tax mentioned in subsection (1) was paid in respect of one dividend only or of dividends all of which were paid on the same date, the recipient company shall be treated for the purposes of section 160 as having paid an amount of advance corporation tax equal to the surrendered amount in respect of a distribution made by it on the date on which the dividend or dividends were paid, and<\/p>\n<p>(b)if the advance corporation tax mentioned in subsection (1) was paid in respect of dividends paid on different dates, the recipient company shall be treated for the purposes of section 160 as having paid an amount of advance corporation tax equal to the appropriate part of the surrendered amount in respect of a distribution made by it on each of those dates.<\/p>\n<p>(3)For the purposes of subsection (2)(b), &#8220;the appropriate part of the surrendered amount&#8221;, in relation to any distribution treated as made on the same date as that on which a dividend was paid, means such part of that amount as bears to the whole of that amount the same proportion as the amount of the tax credit in respect of that dividend bears to the total amount of the tax credits in respect of the dividends mentioned in that subsection.<\/p>\n<p>(4)No amount of advance corporation tax which a recipient company is treated as having paid by virtue of subsection (2) shall, under section 160(3), be set against the recipient company&#8217;s liability to corporation tax; but, in determining for the purposes of subsections (3) and (4) of section 160 what amount (if any) of surplus advance corporation tax there is in any accounting period of a recipient company, an amount so treated as having been paid shall be set against the recipient company&#8217;s liability to corporation tax before any advance corporation tax paid in respect of any distribution made by the recipient company.<\/p>\n<p>(5)No amount of advance corporation tax which a recipient company is treated as having paid by virtue of subsection (2) shall be set against the recipient company&#8217;s liability to corporation tax for any accounting period in which, or in any part of which, the recipient company and the surrendering company would not be treated for the purposes of group relief under Chapter 5 of Part 12 as members of the same group of companies.<\/p>\n<p>(6)Any claim under this section shall be made within 2 years after the end of the accounting period to which that claim relates and shall require the consent or consents of the recipient company or companies concerned (which shall be notified to the inspector in such form as the Revenue Commissioners may require).<\/p>\n<p>(7)No amount of advance corporation tax which has been set off under section 160(2) or dealt with under section 160(3) shall be available for the purposes of a claim under this section, and no amount of advance corporation tax, the benefit of which has been surrendered under this section, shall be treated for the purposes of section 160 as advance corporation tax paid by the surrendering company.<\/p>\n<p>(8)A payment made by a recipient company to a surrendering company in pursuance of an agreement between them as respects the surrender of the benefit of an amount of advance corporation tax, being a payment not exceeding that amount &#8211;<\/p>\n<p>(a)shall not be taken into account in computing profits or losses of either company for corporation tax purposes, and<\/p>\n<p>(b)shall not be regarded as a distribution or a charge on income for any of the purposes of the Corporation Tax Acts.<\/p>\n<p>(9)References in this section to dividends shall be construed as including references to distributions on the redemption, repayment or purchase by a company of its own shares or on the acquisition of those shares by another company which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963) of the company, and references to the payment of dividends shall be construed accordingly.<\/p>\n<p>167. Change of ownership of company: calculation and treatment of advance corporation tax.<br \/>\nDeleted from 6 February 2003<br \/>\n(1)In this section &#8211;<\/p>\n<p>&#8220;trading company&#8221; means a company whose business consists wholly or mainly of the carrying on of a trade or trades;<\/p>\n<p>&#8220;investment company&#8221; means a company (other than a holding company) whose business consists wholly or mainly in the making of investments and the principal part of whose income is derived from the making of investments;<\/p>\n<p>&#8220;holding company&#8221; means a company whose business consists wholly or mainly in the holding of shares or securities of companies which are its 90 per cent subsidiaries and which are trading companies.<\/p>\n<p>(2)This section shall apply if &#8211;<\/p>\n<p>(a)within any period of 3 years there is both a change in the ownership of a company and (either earlier or later in that period, or at the same time) a major change in the nature or conduct of a trade or business carried on by the company, or<\/p>\n<p>(b)at any time after the scale of the activities in a trade or business carried on by a company has become small or negligible, and before any considerable revival of the trade or business, there is a change in ownership of the company.<\/p>\n<p>(3)Sections 160 and 162 shall apply to an accounting period in which the change of ownership occurs as if the part ending with the change of ownership and the part after that change were 2 separate accounting periods, and for that purpose the income of the company charged to corporation tax for the accounting period (as determined in accordance with section 160(5)) shall be apportioned between those parts.<\/p>\n<p>(4)No advance corporation tax paid by the company in respect of distributions made in an accounting period beginning before the change of ownership shall be treated under section 160(4) as paid by it in respect of distributions made in an accounting period ending after the change of ownership, and this subsection shall apply to an accounting period in which the change of ownership occurs as if the part ending with the change of ownership and the part after that change were 2 separate accounting periods.<\/p>\n<p>(5)In subsection (2)(a), &#8220;major change in the nature or conduct of a trade or business&#8221; includes &#8211;<\/p>\n<p>(a)a major change in the type of property dealt in, or services or facilities provided, in the trade or business,<\/p>\n<p>(b)a major change in customers, outlets or markets of the trade or business,<\/p>\n<p>(c)a change whereby the company ceases to be a trading company and becomes an investment company or vice versa, or<\/p>\n<p>(d)where the company is an investment company, a major change in the nature of the investments held by the company,<\/p>\n<p>and this section shall apply even if the change is the result of a gradual process which began outside the period of 3 years mentioned in subsection (2)(a).<\/p>\n<p>(6)Subsection (4) shall apply to advance corporation tax which a company is treated as having paid by virtue of section 166(2) as it applies to advance corporation tax paid by the company.<\/p>\n<p>(7)Subsections (6) and (7) of section 401 shall apply for the purposes of this section as they apply for the purposes of that section and shall so apply as if &#8211;<\/p>\n<p>(a)the reference in paragraph 3 of Schedule 9 to losses or capital allowances were a reference to advance corporation tax, and<\/p>\n<p>(b)the reference in paragraph 7 of Schedule 9 to the 16th day of May, 1973, were a reference to the 9th day of February, 1983.<\/p>\n<p>(8)Section 1075 shall apply in relation to a notice given under paragraph 8 of Schedule 9 (as applied for the purposes of this section by subsection (7)) as it applies in relation to such a notice given for the purposes of section 401.<\/p>\n<p>168. Distributions to certain non-resident companies.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)<\/p>\n<p>(a)This section shall apply to any distribution which &#8211;<\/p>\n<p>(i)is a distribution by virtue only of section 130(2)(d)(iv), or<\/p>\n<p>(ii)is a dividend paid by a company (in this subsection referred to as &#8220;the first-mentioned company&#8221;) to another company &#8211;<\/p>\n<p>(I)<\/p>\n<p>(A)of which the first-mentioned company is a 75 per cent subsidiary, or<\/p>\n<p>(B)which is a member of a consortium which owns the first-mentioned company,<\/p>\n<p>and<\/p>\n<p>(II)which is a resident of a territory with the government of which arrangements having the force of law by virtue of section 826 have been made.<\/p>\n<p>(b)For the purposes of paragraph (a) &#8211;<\/p>\n<p>a company shall be owned by a consortium if 75 per cent or more of the ordinary share capital of the company is beneficially owned between them by 5 or fewer companies of which none beneficially owns less than 5 per cent of that capital, and those companies are referred to as &#8220;members of the consortium&#8221;;<\/p>\n<p>a company shall be regarded as being a resident of a territory if it is so regarded under arrangements made with the government of that territory and having the force of law by virtue of section 826;<\/p>\n<p>the reference to a dividend paid by a company shall be construed as including a reference to a distribution made by the company on the redemption, repayment or purchase of its own shares or by another company which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963) of the company on the acquisition of those shares.<\/p>\n<p>(2)Where a company proves that this section applies to a distribution made by it and claims to have the distribution treated as not being a distribution for the purposes of section 159, then &#8211;<\/p>\n<p>(a)the distribution shall be so treated, and<\/p>\n<p>(b)notwithstanding any provision of the Tax Acts, the company to which the distribution is made shall not be entitled to a tax credit in respect of the distribution.<\/p>\n<p>(3)Any claim under this section shall be made in the return made under section 171 for the accounting period in which the distribution is made and shall require the consent, notified to the inspector in such form as the Revenue Commissioners may require, of the company to which the distribution is made.<\/p>\n<p>169. Non-distributing investment companies.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)In this section, &#8220;relevant company&#8221; means a company which &#8211;<\/p>\n<p>(a)is an investment company within the meaning of Part XIII of the Companies Act, 1990,<\/p>\n<p>(b)is a qualified company within the meaning of section 446, and<\/p>\n<p>(c)makes only one payment in respect of any share or security issued by it, being a payment made in the redemption, repayment or purchase of the share.<\/p>\n<p>(2)Where a company proves that it is a relevant company and claims to have every payment made by it in the redemption, repayment or purchase of shares issued by it treated as not being or including a distribution for the purposes of section 159, then &#8211;<\/p>\n<p>(a)every such payment shall be so treated, and<\/p>\n<p>(b)notwithstanding any provision of the Tax Acts, the person to whom each such payment is made shall not be entitled to a tax credit in respect of it.<\/p>\n<p>(3)A claim under this section shall be made in writing to the inspector in a form prescribed by the Revenue Commissioners and shall be submitted together with the company&#8217;s return of profits for the accounting period which is the first accounting period in which the company makes any payment to which subsection (2) relates.<\/p>\n<p>170. Interest in respect of certain securities.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)Subject to subsection (2), this section shall apply to any interest which is a distribution and is paid by a company in respect of a security of the company within subparagraph (ii), (iii)(I) or (v) of section 130(2)(d), where &#8211;<\/p>\n<p>(a)the security in respect of which the interest is paid was issued by the company to another company the ordinary trading activities of which include the lending of money, and<\/p>\n<p>(b)either &#8211;<\/p>\n<p>(i)the obligation to pay the interest was entered into before the 9th day of February, 1983, or<\/p>\n<p>(ii)that obligation was entered into before the 9th day of June, 1983, pursuant to negotiations which were in progress on the 9th day of February, 1983;<\/p>\n<p>but an obligation shall be treated for the purposes of paragraph (b) as having been entered into before a particular date only if before that date there was in existence a binding contract in writing under which that obligation arose and, where that contract was subject to the execution of a loan agreement, the loan agreement was duly executed before the 9th day of June, 1983.<\/p>\n<p>(2)Where a period of repayment (in this subsection referred to as &#8220;the repayment period&#8221;) of either principal or interest provided for under an obligation referred to in subsection (1)(b) is extended on or after the 9th day of February, 1983 (whether or not the right to such an extension arose out of the terms of the contract creating that obligation), this section shall not apply to any interest which is paid in respect of the period by which the repayment period is extended.<\/p>\n<p>(3)Interest to which this section applies shall not be treated as a distribution for the purposes of either section 159 or 162.<\/p>\n<p>(4)The tax credit in respect of any interest to which this section applies shall not be available under the Corporation Tax Acts for payment to the person by whom the interest is received.<\/p>\n<p>171. Returns, payment and collection of advance corporation tax.<br \/>\nRepealed from 6 April 1999<br \/>\n(1)This section shall apply for the purpose of regulating the time and manner in which advance corporation tax shall be accounted for and paid.<\/p>\n<p>(2)A company shall make for each of its accounting periods in accordance with this section a return to the inspector of the distributions made and distributions received by the company in that period and of the advance corporation tax (if any) payable by the company in respect of the distributions made by it.<\/p>\n<p>(3)A return for any period for which a return is required to be made under this section shall be made within 9 months from the end of that period.<\/p>\n<p>(4)A return under this section need not be made by a company for an accounting period in which it has not made a distribution.<\/p>\n<p>(5)<\/p>\n<p>(a)The return made by a company for an accounting period shall show &#8211;<\/p>\n<p>(i)the amount of the distributions made by the company in the period and the amount of the tax credits in respect of those distributions,<\/p>\n<p>(ii)the amount (if any) of the distributions received by the company in the period and the amount of the tax credits in respect of those distributions,<\/p>\n<p>(iii)the amount of any tax credit carried forward to the accounting period and treated under section 162(4) as a tax credit in respect of a distribution received by the company in that period, and<\/p>\n<p>(iv)the amount (if any) of advance corporation tax payable by the company in respect of the distributions made by it in the period.<\/p>\n<p>(b)The return shall specify whether any amount of tax credits is included pursuant to paragraph (a)(i) in respect of distributions treated under this Chapter as not being distributions for the purposes of section 159 and, if so, the amount so included.<\/p>\n<p>(c)The return shall specify whether any amount of tax credits is included pursuant to paragraph (a)(ii) in respect of distributions treated under this Chapter as not being distributions for the purposes of section 162 and, if so, the amount so included.<\/p>\n<p>(d)Where any amount is included in the return pursuant to subparagraph (ii) or (iii) of paragraph (a), the inclusion shall be treated as a claim by the company to have it taken into account in determining the amount of advance corporation tax payable, and any such claim shall be supported by such evidence as the inspector may reasonably require.<\/p>\n<p>(6)<\/p>\n<p>(a)Advance corporation tax in respect of any distribution required to be included in a return under this section shall be due within 6 months from the end of the accounting period for which the return is required to be made under subsection (3) and shall be paid to the Collector-General, and advance corporation tax so due shall be payable by the company without the making of any assessment; but advance corporation tax which has become so due may be assessed on the company (whether or not it has been paid when the assessment is made).<\/p>\n<p>(b)Notwithstanding paragraph (a), where the last day of the period within which the advance corporation tax is due is a day after the 28th day of the month in which that period ends, the advance corporation tax shall be due not later than the 28th day of that month.<\/p>\n<p>(7)Where it appears to the inspector that there is a distribution which ought to have been and has not been included in a return, or where the inspector is dissatisfied with any return, the inspector may make an assessment on the company to the best of his or her judgment, and any advance corporation tax due under an assessment made by virtue of this subsection shall be treated for the purposes of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.<\/p>\n<p>(8)Where a company makes a distribution on a date which does not fall within an accounting period of the company, an accounting period of the company shall be deemed to end on that date and the company shall make a return of that distribution within 6 months from that date, and the advance corporation tax for which the company is accountable in respect of that distribution shall be due at the time by which the return is to be made.<\/p>\n<p>(9)Where any item has been incorrectly included in a return under this section as a distribution made or received by a company, the inspector may make any such assessments, adjustments or set-offs as may in his or her judgment be required for securing that the resulting liabilities to tax, including interest on unpaid tax, whether of the company or of any other person, are in so far as possible the same as they would have been if the item had not been so included.<\/p>\n<p>(10)<\/p>\n<p>(a)Advance corporation tax assessed on a company under this section shall be due within one month after the issue of the notice of assessment (unless due earlier under subsection (6) or (8)), subject to any appeal against the assessment; but no such appeal shall affect the date when tax is due under subsection (6) or (8).<\/p>\n<p>(b)On the determination of an appeal against an assessment under this section, any tax overpaid shall be repaid.<\/p>\n<p>(11)<\/p>\n<p>(a)The provisions of the Corporation Tax Acts relating to &#8211;<\/p>\n<p>(i)assessments to corporation tax,<\/p>\n<p>(ii)appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and<\/p>\n<p>(iii)the collection and recovery of corporation tax,<\/p>\n<p>shall, in so far as they are applicable, apply to the assessment, collection and recovery of advance corporation tax under this section.<\/p>\n<p>(b)Any tax payable in accordance with this section without the making of an assessment shall carry interest at the rate of 1.25 per cent for each month or part of a month from the date when the tax becomes due and payable until payment.<\/p>\n<p>(c)Subsections (2) to (4) of section 1080 shall apply in relation to interest payable under paragraph (b) as they apply in relation to interest payable under section 1080.<\/p>\n<p>(d)In its application to any tax charged by any assessment to advance corporation tax in accordance with this section, section 1080 shall apply as if subsection (1)(b) of that section were deleted.<\/p>\n<p>(12)Sections 861(2)(b), 884(5), 1071 and 1072 shall, with any necessary modifications, apply in relation to a return under this section as they apply in relation to a return under section 884.<\/p>\n<p>(13)In this section, references to a distribution or distributions do not include references to a distribution or distributions made by a company not resident in the State.<\/p>\n<p>172. Application of Corporation Tax Acts.<br \/>\nRepealed from 6 April 1999<br \/>\nThe provisions of the Corporation Tax Acts as to the charge, calculation and payment of corporation tax (including provisions conferring any relief or exemption) shall not be construed as affecting the charge, calculation or payment of advance corporation tax.<\/p>\n<h4>Schedule 2A Dividend withholding tax<\/h4>\n<p>Section 172A.<\/p>\n<p>Interpretation<\/p>\n<p>1.In this Schedule &#8211;<\/p>\n<p>&#8216;appropriate person&#8217;, in relation to a pension scheme, means &#8211;<\/p>\n<p>(a)in the case of an exempt approved scheme (within the meaning of section 774), the administrator (within the meaning of section 770) of the scheme,<\/p>\n<p>(b)in the case of a retirement annuity contract to which section 784 or 785 applies, the person lawfully carrying on in the State the business of granting annuities on human life with whom the contract is made, and<\/p>\n<p>(c)in the case of a trust scheme to which section 784 or 785 applies, the trustees of the trust scheme;<\/p>\n<p>&#8216;beneficiary&#8217;, in relation to a trust, means any person (in this definition referred to as &#8216;the first-mentioned person&#8217;) who, directly or indirectly, is beneficially entitled under the trust, or may, through the exercise of any power or powers conferred on any person or persons, reasonably expect to become so beneficially entitled, to income or capital or to have any income or capital applied for the first-mentioned person&#8217;s benefit or to receive any other benefit;<\/p>\n<p>&#8216;settlor&#8217;, in relation to a trust, includes any person who has provided or undertaken to provide assets or income directly or indirectly for the purposes of the trust;<\/p>\n<p>&#8216;trust&#8217; means any trust, disposition, settlement, covenant, agreement or arrangement established, made or entered into by one or more than one settlor, whereby &#8211;<\/p>\n<p>(a)assets, which may or may not change from time to time in the course of the management of the trust, or<\/p>\n<p>(b)income, the sources and nature of which may or may not also so change from time to time,<\/p>\n<p>beneficially owned by the settlor or settlors are or is vested in a person or persons (in this Schedule referred to as the &#8216;trustee&#8217; or &#8216;trustees&#8217;) to be &#8211;<\/p>\n<p>(i)either or both held and managed for,<\/p>\n<p>(ii)paid over to, or<\/p>\n<p>(iii)applied for,<\/p>\n<p>the benefit of any beneficiary or beneficiaries, but does not include a pension fund, charity or undertaking for collective investment in transferable securities which is established or regulated under the law of any relevant territory.<\/p>\n<p>Currency of certain certificates<\/p>\n<p>2.A certificate referred to in paragraph 8(f) shall be treated as a current certificate for the period from the date of the issue of the certificate to the 31st day of December in the fifth year following the year in which the certificate was issued.<\/p>\n<p>Currency of certain declarations<\/p>\n<p>2A.A declaration referred to in paragraph 9 shall be treated as a current declaration for the period from the date of the making of the declaration to the 31st day of December in the fifth year following the year in which the declaration was made.<\/p>\n<p>Declaration to be made by company resident in the State<\/p>\n<p>3.The declaration referred to in section 172C(2)(a) shall be a declaration in writing to the relevant person in relation to the relevant distributions which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as &#8216;the declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distributions is a company resident in the State,<\/p>\n<p>(e)contains the name and tax reference number of the company,<\/p>\n<p>(f)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by pension scheme<\/p>\n<p>4.The declaration referred to in section 172C(2)(b) shall be a declaration in writing to the relevant person in relation to the relevant distributions which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as &#8216;the declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distributions is a pension scheme,<\/p>\n<p>(e)contains the name and tax reference number of the pension scheme,<\/p>\n<p>(f)contains a certificate by the appropriate person in relation to the pension scheme that, to the best of that person&#8217;s knowledge and belief, the declaration made in accordance with subparagraph (d) and the information furnished in accordance with subparagraph (e) are true and correct,<\/p>\n<p>(g)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by qualifying fund manager or qualifying savings manager<\/p>\n<p>4A.The declaration referred to in section 172C(2)(ba)(ii) shall be a declaration in writing to the relevant person which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) beneficially entitled to the relevant distribution in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(ba)(i),<\/p>\n<p>(e)contains the name and tax reference number of the person,<\/p>\n<p>(f)contains a statement that, at the time when the declaration is made, the relevant distribution in respect of which the declaration is made will be applied as income of an approved retirement fund, an approved minimum retirement fund or, as the case may be, a special savings incentive account,<\/p>\n<p>(g)contains an undertaking that, if the person mentioned in paragraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distribution accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by qualifying employee share ownership trust<\/p>\n<p>5.The declaration referred to in section 172C(2)(c) shall be a declaration in writing to the relevant person in relation to the relevant distributions which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as &#8216;the declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distributions is a qualifying employee share ownership trust,<\/p>\n<p>(e)contains the name and address of that person,<\/p>\n<p>(f)contains a statement that at the time when the declaration is made the relevant distributions in respect of which the declaration is made will form part of the income of the qualifying employee share ownership trust and will be applied in accordance with the provisions of paragraph 13 of Schedule 12,<\/p>\n<p>(g)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by collective investment undertaking<\/p>\n<p>6.The declaration referred to in section 172C(2)(d) shall be a declaration in writing to the relevant person in relation to the relevant distributions which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as &#8216;the declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distributions is a collective investment undertaking,<\/p>\n<p>(e)contains the name and tax reference number of the collective investment undertaking,<\/p>\n<p>(f)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by persons entitled to exemption from income tax under Schedule F<\/p>\n<p>6A.The declaration referred to in section 172C(2)(da)(ii) shall be a declaration in writing to the relevant person which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as &#8216;the declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(da) (i),<\/p>\n<p>(e)contains the name and tax reference number of the person,<\/p>\n<p>(f)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by charity<\/p>\n<p>7.The declaration referred to in section 172C(2)(e)(ii) shall be a declaration in writing to the relevant person in relation to the relevant distributions which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as &#8216;the declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distributions is a person referred to in section 172C(2)(e)(i),<\/p>\n<p>(e)contains the name and address of that person,<\/p>\n<p>(f)contains a statement that at the time when the declaration is made the relevant distributions in respect of which the declaration is made will be applied to charitable purposes only and &#8211;<\/p>\n<p>(i)form part of the income of a body of persons or trust treated by the Revenue Commissioners as a body or trust established for charitable purposes only, or<\/p>\n<p>(ii)are, according to the rules or regulations established by statute, charter, decree, deed of trust or will, applicable to charitable purposes only and are so treated by the Revenue Commissioners,<\/p>\n<p>(g)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by approved athletic or amateur sports body<\/p>\n<p>7A.The declaration referred to in section 172C(2)(f)(ii) shall be a declaration in writing to the relevent person which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as &#8216;the declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(f)(i),<\/p>\n<p>(e)contains the name and address of the person,<\/p>\n<p>(f)contains a statement that, at the time when the declaration is made, the relevant distributions in respect of which the declaration is made will be applied for the sole purpose of promoting athletic or amateur games or sports and are so treated by the Revenue Commissioners,<\/p>\n<p>(g)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by designated stockbroker operating special portfolio investment account<\/p>\n<p>7B.The declaration referred to in section 172C(2)(g)(ii) shall be a declaration in writing to the relevant person which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as &#8216;the declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(g)(i),<\/p>\n<p>(e)contains the name and tax reference number of the person,<\/p>\n<p>(f)contains a statement that, at the time when the declaration is made, the relevant distributions in respect of which the declaration is made will be applied as all or part of the relevant income or gains (within the meaning of section 838) of a special portfolio investment account and are so treated by the Revenue Commissioners,<\/p>\n<p>(g)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by qualifying non-resident person, not being a company<\/p>\n<p>8.The declaration referred to in section 172D(3)(a)(iii) shall be a declaration in writing to the relevant person in relation to the relevant distributions which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as &#8216;the declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distributions is a qualifying non-resident person,<\/p>\n<p>(e)contains the name and address of that person,<\/p>\n<p>(f)is accompanied by a certificate given by the tax authority of the relevant territory in which the person is, by virtue of the law of that territory, resident for the purposes of tax certifying that the person is so resident in that territory,<\/p>\n<p>(g)in the case where the relevant distributions (or amounts or other assets representing such distributions) are to be received by a trust, is accompanied by &#8211;<\/p>\n<p>(i)a certificate signed by the trustee or trustees of the trust which shall show the name and address of &#8211;<\/p>\n<p>(I)the settlor or settlors in relation to the trust, and<\/p>\n<p>(II)the beneficiary or beneficiaries in relation to the trust,<\/p>\n<p>and<\/p>\n<p>(ii)a notice in writing from the Revenue Commissioners stating that the Commissioners have noted the contents of the certificate referred to in clause (i),<\/p>\n<p>(h)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be a qualifying non-resident person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(i)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by qualifying non-resident person, being a company<\/p>\n<p>9.The declaration referred to in section 172D(3)(b) shall be a declaration in writing to the relevant person in relation to the relevant distributions which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as &#8216;the declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distributions is a company which is a qualifying non-resident person,<\/p>\n<p>(e)contains &#8211;<\/p>\n<p>(i)the name and address of that company,<\/p>\n<p>(ii)the name of the territory in which the company is resident for the purposes of tax,<\/p>\n<p>(iii)in the case of a company within the meaning of section 172D(3)(b)(ii), the name of the relevant territory or names of the relevant territories, as the case may be, in which the person or persons who control (within the meaning of section 172D(4)(a)), whether directly or indirectly, the company is or are resident for the purposes of tax by virtue of the law of that territory or the laws of those territories, and<\/p>\n<p>(iv)in the case of a company within the meaning of section 172D(3)(b)(iii), the name and address of a recognised stock exchange on which the principal class of the shares of the company or<\/p>\n<p>(I)where the company is a 75 per cent subsidiary (within the meaning of section 172D(5)) of another company, of that other company, or<\/p>\n<p>(II)where the company is wholly owned (within the meaning of section 172D(6)) by 2 or more companies, of each of those companies,<\/p>\n<p>is substantially and regularly traded,<\/p>\n<p>(f)[deleted]<\/p>\n<p>(g)[deleted]<\/p>\n<p>(h)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be a qualifying non-resident person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(i)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>The declaration referred to in section 172C(2)(bb) shall be a declaration in writing to the relevant person which &#8211;<\/p>\n<p>10.Declaration to be made by a PRSA administrator<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) beneficially entitled to the relevant distribution in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(bb),<\/p>\n<p>(e)contains the name and tax reference number of the person,<\/p>\n<p>(f)contains a statement that, at the time when the declaration is made, the relevant distribution in respect of which the declaration is made will be applied as income of a PRSA,<\/p>\n<p>(g)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distribution accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>The declaration referred to in section 172C(2)(db) shall be a declaration in writing to the relevant person which &#8211;<\/p>\n<p>11.Declaration to be made by exempt unit trust<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(db),<\/p>\n<p>(e)contains the name and tax reference number of the person,<\/p>\n<p>(f)contains a statement that, at the time when the declaration is made, the relevant distribution in respect of which the declaration is made will be applied as income of an exempt unit trust to which section 731(5)(a) applies,<\/p>\n<p>(g)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distribution accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by a PEPP provider<\/p>\n<p>12.The declaration referred to in section 172C(2)(bc) shall be a declaration in writing to the relevant person in relation to the relevant distributions which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distributions is a person referred to in section 172C(2)(bc),<\/p>\n<p>(e)contains the name and tax reference number of the person,<\/p>\n<p>(f)contains a statement that, at the time when the declaration is made, the relevant distributions in respect of which the declaration is made will be applied as income of a PEPP,<\/p>\n<p>(g)contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<p>Declaration to be made by an excluded person, being a non-resident pension scheme under section 172C(2)(bd)<\/p>\n<p>13.The declaration referred to in section 172C(2)(bd) shall be a declaration in writing to the relevant person in relation to the relevant distributions which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as \u2018the declarer\u2019) beneficially entitled to the relevant distributions in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distributions is a person referred to in section 172C(2)(bd),<\/p>\n<p>(e)contains the name of the person referred to in subparagraph (d) and the country in which that person is authorised,<\/p>\n<p>(f)contains a statement that, at the time when the declaration is made, the relevant distributions in respect of which the declaration is made will be applied as income of a scheme referred to in section 172C(2)(bd),<\/p>\n<p>(g)contains an undertaking by the declarer that, if the person referred to in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.<\/p>\n<h4>Schedule 2B Investment Undertakings: Declarations<\/h4>\n<p>Section 739D.<\/p>\n<p>Interpretation<\/p>\n<p>1.In this Schedule &#8211;<\/p>\n<p>&#8216;appropriate person&#8217;, in relation to a pension scheme, means &#8211;<\/p>\n<p>(a)in the case of an exempt approved scheme (within the meaning of section 774), the administrator (within the meaning of section 770) of the scheme,<\/p>\n<p>(b)in the case of a retirement annuity contract to which section 784 or 785 applies, the person lawfully carrying on in the State the business of granting annuities on human life with whom the contract is made, and<\/p>\n<p>(c)in the case of a trust scheme to which section 784 or 785 applies, the trustees of the trust scheme;<\/p>\n<p>&#8216;tax reference number&#8217;, in relation to a person, has the meaning assigned to it by section 885 in relation to a specified person within the meaning of that section.<\/p>\n<p>Declarations of pension schemes<\/p>\n<p>2.The declaration referred to in section 739D(6)(a) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person entitled to the units is a pension scheme,<\/p>\n<p>(e)contains the name and tax reference number of the pension scheme,<\/p>\n<p>(f)contains a certificate by the appropriate person in relation to the pension scheme that, to the best of that person&#8217;s knowledge and belief, the declaration made in accordance with subparagraph (d) and the information furnished in accordance with subparagraph (e) are true and correct, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declaration of company carrying on life business<\/p>\n<p>3.The declaration referred to in section 739D(6)(b) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person entitled to the units is a company carrying on life business within the meaning of section 706,<\/p>\n<p>(e)contains the name and tax reference number of the company, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declarations of investment undertakings<\/p>\n<p>4.The declaration referred to in section 739D(6)(c) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time the declaration is made, the person entitled to the units is an investment undertaking,<\/p>\n<p>(e)contains the name and tax reference number of the investment undertaking, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>4A.The declaration referred to in section 739D(6)(cc) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) who holds the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time the declaration is made, the holder of the units is a general partner acting on behalf of the investment limited partnership,<\/p>\n<p>(e)contains the name and tax reference number of the investment limited partnership, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declarations of special investment scheme<\/p>\n<p>5.The declaration referred to in section 739D(6)(d) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time the declaration is made, the person entitled to the units is a special investment scheme,<\/p>\n<p>(e)contains the name and tax reference number of the special investment scheme, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declarations of unit trust<\/p>\n<p>6.The declaration referred to in section 739D(6)(e) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time the declaration is made, the person entitled to the units is a unit trust to which section 731(5)(a) applies,<\/p>\n<p>(e)contains the name and tax reference number of the unit trust, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declaration of charity<\/p>\n<p>7.The declaration referred to in section 739D(6)(f) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) entitled to the units in respect of which the undertaking is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person entitled to the units is a person referred to in section 739D(6)(f)(i),<\/p>\n<p>(e)contains the name and address of that person,<\/p>\n<p>(f)contains a statement that at the time when the declaration is made the units in respect of which the declaration is made are held for charitable purposes only and &#8211;<\/p>\n<p>(i)form part of the assets of a body of persons or trust treated by the Revenue Commissioners as a body or trust established for charitable purposes only, or<\/p>\n<p>(ii)are, according to the rules or regulations established by statute, charter, decree, deed of trust or will, held for charitable purposes only and are so treated by the Revenue Commissioners,<\/p>\n<p>(g)contains an undertaking by the declarer that if the person mentioned in subparagraph (d) ceases to be a person referred to in section 739D(6)(f)(i), the declarer will notify the investment undertaking accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declaration of qualifying management company and specified company<\/p>\n<p>8.The declaration referred to in section 739D(6)(g) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by a person (in this paragraph referred to as the &#8216;declarer&#8217;) who is entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time the declaration is made, the person entitled to the units is a qualifying management company or, as the case may be, a specified company,<\/p>\n<p>(e)contains the name and tax reference number of the declarer, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declaration of qualifying fund manager or qualifying savings manager<\/p>\n<p>9.The declaration referred to in section 739D(6)(h) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by a qualifying fund manager or, as the case may be, a qualifying savings manager (in this paragraph referred to as the &#8216;declarer&#8217;) in respect of the units which are assets in an approved retirement fund, an approved minimum retirement fund, or a special savings incentive account,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time the declaration is made, the units in respect of which the declaration is made &#8211;<\/p>\n<p>(i)are assets of an approved retirement fund, an approved minimum retirement fund or, as the case may be, a special savings incentive account, and<\/p>\n<p>(ii)are managed by the declarer for the individual who is beneficially entitled to the units,<\/p>\n<p>(e)contains the name, address and tax reference number of the individual referred to in paragraph (d),<\/p>\n<p>(f)contains an undertaking by the declarer that if the units cease to be assets of the approved retirement fund, the approved minimum retirement fund or held in the special savings incentive account, including a case where the units are transferred to another such fund or account, the declarer will notify the investment undertaking accordingly, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declaration of PRSA Administrator<\/p>\n<p>9A.The declaration referred to in section 739D(6)(i) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by a PRSA administrator (in this paragraph referred to as the &#8216;declarer&#8217;) in respect of units which are assets in a PRSA,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the units in respect of which the declaration is made &#8211;<\/p>\n<p>(i)are assets of a PRSA, and<\/p>\n<p>(ii)are managed by the declarer for the individual who is beneficially entitled to the units,<\/p>\n<p>(e)contains the name, address and tax reference number of the individual referred to in subparagraph (d),<\/p>\n<p>(f)contains an undertaking by the declarer that if the units cease to be assets of the PRSA, including a case where the units are transferred to another PRSA, the declarer will notify the investment undertaking accordingly, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>The declaration referred to in section 739D(6)(j) is a declaration in writing to the investment undertaking which<\/p>\n<p>9B.Declaration of Credit Union &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)contains the name and address of the declarer,<\/p>\n<p>(e)declares that, at the time when the declaration is made the person entitled to the units is a credit union,<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declarations of non-resident on acquisition of units<\/p>\n<p>10.The declaration referred to in section 739(D)(7)(a)(i) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by a person (in this paragraph referred to as the &#8216;declarer&#8217;) who is entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is made on or about the time when the units are applied for or acquired by the declarer,<\/p>\n<p>(c)is signed by the declarer,<\/p>\n<p>(d)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(e)declares that, at the time the declaration is made, the declarer is not resident in the State,<\/p>\n<p>(f)contains the name and address of the declarer,<\/p>\n<p>(g)contains an undertaking by the declarer that if the declarer becomes resident in the State, the declarer will notify the investment undertaking accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declaration of non-corporate person<\/p>\n<p>11.The declaration referred to in section 739D(7)(a)(ii) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) who is entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that the declarer, at the time the declaration is made, is neither resident nor ordinarily resident in the State,<\/p>\n<p>(e)contains the name and address of the declarer,<\/p>\n<p>(f)contains an undertaking by the declarer that if the declarer becomes resident in the State, the declarer will notify the investment undertaking accordingly, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declaration to Collector-General<\/p>\n<p>12.The declaration referred to in section 739D(8)(a) is a declaration in writing to the Collector-General which &#8211;<\/p>\n<p>(a)is made and signed by the investment undertaking,<\/p>\n<p>(b)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(c)contains the name, address and tax reference number of the investment undertaking,<\/p>\n<p>(d)declarer that, to the best of the investment undertaking&#8217;s knowledge and belief, no units in the investment undertaking were held on 1 April 2000 by a person who was resident in the State at that time, other than such persons whose names and addresses are set out on the schedule to the declaration, and<\/p>\n<p>(e)contains a schedule which sets out the name and address of each person who on 1 April 2000 was a unit holder in the investment undertaking and who was on that date, resident in the State.<\/p>\n<p>Declaration of intermediary<\/p>\n<p>13.The declaration referred to in section 739D(9)(a) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made and signed by the intermediary,<\/p>\n<p>(b)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(c)contains the name and address of the intermediary,<\/p>\n<p>(d)declares that &#8211;<\/p>\n<p>(i)at the time of making the declaration, to the best of the intermediary&#8217;s knowledge and belief, the person who has beneficial entitlement to each of the units in respect of which the declaration is made &#8211;<\/p>\n<p>(I)is not resident in the State, where that person is a company, and<\/p>\n<p>(II)where that person is not a company, the person is neither resident nor ordinarily resident in the State, and<\/p>\n<p>(ii)unless the investment undertaking is notified in writing to the contrary, every subsequent application by the intermediary to acquire units in the investment undertaking or an investment undertaking associated with the first-mentioned investment undertaking, shall be on behalf of such a person,<\/p>\n<p>(e)contains an undertaking that where the intermediary becomes aware at any time that the declaration made in accordance with subparagraph (d) is no longer correct, the intermediary will notify the investment undertaking in writing accordingly, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>The declaration referred to in section 739D(9A)(a) is a declaration in writing to the investment undertaking which<\/p>\n<p>14.Certain resident entities: declaration of intermediary<\/p>\n<p>(a)is made and signed by the intermediary,<\/p>\n<p>(b)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(c)contains the name and address of the intermediary,<\/p>\n<p>(d)declares that &#8211;<\/p>\n<p>(i)at the time of making the declaration, to the best of the intermediary&#8217;s knowledge and belief, the person who has beneficial entitlement to each of the units in respect of which the declaration is made is a person referred to in paragraphs (a) to (k) of section 739D(6), and<\/p>\n<p>(ii)unless the investment undertaking is notified in writing to the contrary, every subsequent application by the intermediary to acquire units in the investment undertaking or an investment undertaking associated with the first-mentioned investment undertaking, shall be on behalf of such a person,<\/p>\n<p>(e)contains an undertaking that where the intermediary becomes aware at any time that the declaration made under subparagraph (d) is no longer correct, the intermediary will notify the investment undertaking in writing accordingly, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<p>Declaration of PEPP provider<\/p>\n<p>15.The declaration referred to in section 739D(6)(n) is a declaration in writing to the investment undertaking which &#8211;<\/p>\n<p>(a)is made by a PEPP provider (in this paragraph referred to as the &#8216;declarer&#8217;) in respect of units which are assets in a PEPP,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the units in respect of which the declaration is made &#8211;<\/p>\n<p>(i)are assets of a PEPP, and<\/p>\n<p>(ii)are managed by the declarer for the individual who is beneficially entitled to the units,<\/p>\n<p>(e)contains the name, address and tax reference number of the individual referred to in subparagraph (d),<\/p>\n<p>(f)contains an undertaking by the declarer that if the units cease to be assets of the PEPP, including a case where the units are transferred to another PEPP, the declarer will notify the investment undertaking accordingly, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.<\/p>\n<h4>Schedule 2C Irish Real Estate Funds: Declarations<\/h4>\n<p>Sections 739B, 739K and 739U.<\/p>\n<p>Interpretation<\/p>\n<p>1.In this Schedule &#8211;<\/p>\n<p>&#8220;appropriate person&#8221;, in relation to a pension scheme, means &#8211;<\/p>\n<p>(a)in the case of an exempt approved scheme (within the meaning of section 774), the administrator (within the meaning of section 770) of the scheme,<\/p>\n<p>(b)in the case of a retirement annuity contract to which section 784 or 785 applies, the person lawfully carrying on in the State the business of granting annuities on human life with whom the contract is made, and<\/p>\n<p>(c)in the case of a trust scheme to which section 784 or 785 applies, the trustees of the trust scheme;<\/p>\n<p>&#8220;IREF declaration&#8221;, in relation to a person means the declaration that that person would be required to make under section 739K and Schedule 2C.<\/p>\n<p>Declaration of pension scheme<\/p>\n<p>2.The declaration referred to in section 739K, in respect of a pension scheme referred to in paragraph (a) or (f) of the definition of &#8220;specified person&#8221;, is a declaration in writing to the IREF which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person entitled to the units is a pension scheme,<\/p>\n<p>(e)contains the name, address and TIN of the pension scheme,<\/p>\n<p>(f)contains a certificate by the appropriate person in relation to the pension scheme that, to the best of that person&#8217;s knowledge and belief, the declaration made in accordance with subparagraph (d) and the information furnished in accordance with subparagraph (e) are true and correct,<\/p>\n<p>(g)contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M,<\/p>\n<p>(h)attaches, where the scheme is one to which paragraph (f) of the definition of &#8220;specified person&#8221; applies, supporting documentation evidencing equivalence,<\/p>\n<p>(i)contains an undertaking by the declarer that if the scheme becomes a specified person, the declarer will notify the IREF accordingly, and<\/p>\n<p>(j)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.<\/p>\n<p>Declaration of PRSA Administrator<\/p>\n<p>3.The declaration referred to in section 739K, in respect of a PRSA referred to in paragraph (a) or (f) of the definition of &#8220;specified person&#8221;, is a declaration in writing to the IREF which &#8211;<\/p>\n<p>(a)is made by a PRSA administrator (in this paragraph referred to as the &#8220;declarer&#8221;) in respect of units which are assets in a PRSA,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the units in respect of which the declaration is made &#8211;<\/p>\n<p>(i)are assets of a PRSA, and<\/p>\n<p>(ii)are managed by the declarer for the individual who is beneficially entitled to the units,<\/p>\n<p>(e)contains the name, address and TIN of the individual referred to in subparagraph (d),<\/p>\n<p>(f)contains an undertaking by the declarer that if the units cease to be assets of the PRSA, including a case where the units are transferred to another PRSA, the declarer will notify the IREF accordingly,<\/p>\n<p>(g)contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M,<\/p>\n<p>(h)attaches, where the PRSA is one to which paragraph (f) of the definition of &#8220;specified person&#8221; applies, supporting documentation evidencing equivalence,<\/p>\n<p>(i)contains an undertaking by the declarer that if the PRSA becomes a specified person, the declarer will notify the IREF accordingly, and<\/p>\n<p>(j)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.<\/p>\n<p>Declaration of investment undertaking<\/p>\n<p>4.The declaration referred to in section 739K, in respect of an investment undertaking referred to in paragraph (b) or (f) of the definition of &#8220;specified person&#8221;, is a declaration in writing to the IREF which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8220;declarer&#8221;) entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time the declaration is made, the person entitled to the units is an investment undertaking,<\/p>\n<p>(e)contains the name, address and TIN of the investment undertaking,<\/p>\n<p>(f)contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M,<\/p>\n<p>(g)attaches, where the undertaking is one to which paragraph (f) of the definition of &#8220;specified person&#8221; applies, supporting documentation evidencing equivalence,<\/p>\n<p>(h)contains an undertaking by the declarer that if the investment undertaking becomes a specified person, the declarer will notify the IREF accordingly, and<\/p>\n<p>(i)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.<\/p>\n<p>Declaration of company carrying on life business<\/p>\n<p>5.The declaration referred to in section 739K, in respect of a life assurance company referred to in paragraph (c) or (f) of the definition of &#8220;specified person&#8221;, is a declaration in writing to the IREF which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person entitled to the units is a company carrying on life business within the meaning of Part 26,<\/p>\n<p>(e)contains the name, address and TIN of the company,<\/p>\n<p>(f)contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M,<\/p>\n<p>(g)attaches, where the company is one to which paragraph (f) of the definition of &#8220;specified person&#8221; applies, supporting documentation evidencing equivalence,<\/p>\n<p>(h)contains an undertaking by the declarer that if the company becomes a specified person, the declarer will notify the IREF accordingly, and<\/p>\n<p>(i)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.<\/p>\n<p>Declaration of Charity<\/p>\n<p>6.The declaration referred to in section 739K, in respect of a charity referred to in paragraph (d) of the definition of &#8220;specified person&#8221;, is a declaration in writing to the IREF which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8220;declarer&#8221;) entitled to the units in respect of which the undertaking is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the person entitled to the units is a person who &#8211;<\/p>\n<p>(i)is exempt from income tax under schedule D by virtue of section 207(1)(b), or<\/p>\n<p>(ii)is exempt from corporation tax by virtue of section 207(1)(b) as it applies for the purposes of corporation tax under section 76(6),<\/p>\n<p>(e)contains the name, address and TIN of that person,<\/p>\n<p>(f)contains a statement that at the time when the declaration is made the units in respect of which the declaration is made are held for charitable purposes only and &#8211;<\/p>\n<p>(i)form part of the assets of a body of persons or trust treated by the Revenue Commissioners as a body or trust established for charitable purposes only, or<\/p>\n<p>(ii)are, according to the rules or regulations established by statute, charter, decree, deed of trust or will, held for charitable purposes only and are so treated by the Revenue Commissioners,<\/p>\n<p>(g)contains an undertaking by the declarer that if the person mentioned in subparagraph (d) ceases to be a person referred to in subparagraph (d), the declarer will notify the IREF accordingly, and<\/p>\n<p>(h)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.<\/p>\n<p>Declaration of Credit Unions<\/p>\n<p>7.The declaration referred to in section 739K, in respect of a credit union referred to in paragraph (e) of the definition of &#8220;specified person&#8221;, is a declaration in writing to the IREF which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8220;declarer&#8221;) who is entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)contains the name, address and TIN of the declarer,<\/p>\n<p>(e)declares that at the time when the declaration is made the person entitled to the units is a credit union, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.<\/p>\n<p>Declaration of qualifying company<\/p>\n<p>8.The declaration referred to in section 739K, in respect of a qualifying company referred to in paragraph (g) of the definition of &#8220;specified person&#8221;, is a declaration in writing to the IREF which &#8211;<\/p>\n<p>(a)is made by the person (in this paragraph referred to as the &#8216;declarer&#8217;) who is entitled to the units in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)contains the name, address and TIN of the declarer,<\/p>\n<p>(e)declares that at the time when the declaration is made the person entitled to the units is a qualifying company, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.<\/p>\n<p>Declaration of qualifying intermediaries regarding Approved Retirement Funds or Approved Minimum Retirement Funds<\/p>\n<p>9.The declaration referred to in section 739K, in respect of an Approved Retirement Fund or an Approved Minimum Retirement Fund referred to in paragraph (a) or (f) of the definition of &#8216;specified person&#8217; in that section, is a declaration in writing to the IREF which &#8211;<\/p>\n<p>(a)is made by a qualifying fund manager (in this paragraph referred to as the &#8216;declarer&#8217;),<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time of making the declaration, the units in respect of which the declaration is made &#8211;<\/p>\n<p>(i)are assets of an Approved Retirement Fund or an Approved Minimum Retirement Fund, and<\/p>\n<p>(ii)are managed by the declarer for the person who is beneficially entitled to the units,<\/p>\n<p>(e)contains the name, address and TIN of the person referred to in subparagraph (d)(ii),<\/p>\n<p>(f)contains an undertaking by the declarer that if the units cease to be assets of the Approved Retirement Fund or an Approved Minimum Retirement Fund, including a case where the units are transferred to another Approved Retirement Fund or an Approved Minimum Retirement Fund, the declarer will notify the IREF in writing accordingly,<\/p>\n<p>(g)contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M,<\/p>\n<p>(h)provides, where the Approved Retirement Fund or an Approved Minimum Retirement Fund is one to which paragraph (f) of the definition of &#8216;specified person&#8217; applies, supporting documentation evidencing equivalence,<\/p>\n<p>(i)contains an undertaking by the declarer that if the Approved Retirement Fund or an Approved Minimum Retirement Fund becomes a specified person, the declarer will notify the IREF in writing accordingly, and<\/p>\n<p>(j)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.<\/p>\n<p>Declaration of PRSA administrators regarding PRSAs and vested PRSAs<\/p>\n<p>10.The declaration referred to in section 739K, in respect of a PRSA or a vested PRSA referred to in paragraph (a) or (f) of the definition of &#8216;specified person&#8217; in that section, is a declaration in writing to the IREF which &#8211;<\/p>\n<p>(a)is made by a PRSA administrator (in this paragraph referred to as the &#8216;declarer&#8217;),<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time of making the declaration, the units in respect of which the declaration is made &#8211;<\/p>\n<p>(i)are assets of a PRSA or a vested PRSA, and<\/p>\n<p>(ii)are managed by the declarer for the person who is beneficially entitled to the units,<\/p>\n<p>(e)contains the name, address and TIN of the person referred to in subparagraph (d)(ii),<\/p>\n<p>(f)contains an undertaking by the declarer that if the units cease to be assets of the PRSA or the vested PRSA, including a case where the units are transferred to another PRSA or vested PRSA, the declarer will notify the IREF in writing accordingly,<\/p>\n<p>(g)contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M,<\/p>\n<p>(h)provides, where the PRSA or vested PRSA is one to which paragraph (f) of the definition of &#8216;specified person&#8217; applies, supporting documentation evidencing equivalence,<\/p>\n<p>(i)contains an undertaking by the declarer that if the PRSA or vested PRSA becomes a specified person, the declarer will notify the IREF in writing accordingly, and<\/p>\n<p>(j)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.<\/p>\n<p>Declaration of qualifying intermediaries regarding certain specified persons in section 739K(1)<\/p>\n<p>11.The declaration referred to in section 739K, in respect of a qualifying intermediary, is a declaration in writing to the IREF which &#8211;<\/p>\n<p>(a)is made by a qualifying intermediary (in this paragraph referred to as the &#8216;declarer&#8217;),<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)contains the name and address of the declarer,<\/p>\n<p>(e)declares that, at the time of making the declaration, the unit holder in respect of which the declaration is made &#8211;<\/p>\n<p>(i)is a scheme to which paragraph (a) or (f) of the definition of &#8216;specified person&#8217; applies,<\/p>\n<p>(ii)is a charity to which paragraph (d) of the definition of &#8216;specified person&#8217; applies, or<\/p>\n<p>(iii)is a credit union,<\/p>\n<p>(f)contains an undertaking by the declarer that where the declarer becomes aware at any time that the declaration made in accordance with subparagraph (e) is no longer correct, the declarer will notify the IREF in writing accordingly, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.<\/p>\n<p>Declaration of PEPP providers regarding PEPPs and vested PEPPs<\/p>\n<p>12.The declaration referred to in section 739K, in respect of a PEPP or a vested PEPP referred to in paragraph (a) or (f) of the definition of &#8216;specified person&#8217; in that section, is a declaration in writing to the IREF which &#8211;<\/p>\n<p>(a)is made by a PEPP provider (in this paragraph referred to as the &#8216;declarer&#8217;),<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time of making the declaration, the units in respect of which the declaration is made &#8211;<\/p>\n<p>(i)are assets of a PEPP or a vested PEPP, and<\/p>\n<p>(ii)are managed by the declarer for the person who is beneficially entitled to the units,<\/p>\n<p>(e)contains the name, address and TIN of the person referred to in subparagraph (d)(ii),<\/p>\n<p>(f)contains an undertaking by the declarer that if the units cease to be assets of the PEPP or the vested PEPP, including a case where the units are transferred to another PEPP or vested PEPP, the declarer will notify the IREF in writing accordingly,<\/p>\n<p>(g)contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M,<\/p>\n<p>(h)provides, where the PEPP or vested PEPP is one to which paragraph (f) of the definition of &#8216;specified person&#8217; applies, supporting documentation evidencing equivalence,<\/p>\n<p>(i)contains an undertaking by the declarer that if the PEPP or vested PEPP becomes a specified person, the declarer will notify the IREF in writing accordingly, and<\/p>\n<p>(j)contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-11014\" data-postid=\"11014\" class=\"themify_builder_content themify_builder_content-11014 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Dividend Income A dividend is usually declared by the directors and confirmed by the shareholders. Under companies law, it may only be declared out of earned profits. It is not deductible for tax as it is a distribution of profit out of the company to the shareholders. Generally companies must withhold dividend withholding tax on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[399,352],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11014"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=11014"}],"version-history":[{"count":17,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11014\/revisions"}],"predecessor-version":[{"id":34931,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11014\/revisions\/34931"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=11014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=11014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=11014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}