Taxes Consolidation Act

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[1997.]TaxesConsolidationAct,1997.[No.39.] Pt.47S.1076
untilthecontraryisprovedtohavebeensignedbysuch
inspector.
CHAPTER3
Capitalgainstaxpenalties
1077.—(1)Withoutprejudicetothegeneralityofsection913(1),
Chapter1ofthisPartshall,subjecttoanynecessarymodifications,
applyinrelationtocapitalgainstax,andsections1052,1053and
1054,asappliedbythissection,shallforthepurposesoftheCapital
Gains Tax Acts be construed as if inSchedule 29there were
included—
(a)incolumn 1, references tosections 914to917,
(b)incolumn 2, a reference tosection 945, and
(c)incolumn 3, a reference tosection 980.
(2) Where any person has been required by notice or precept given
under the provisions of the Income Tax Acts as applied bysection
913, or undersection 914,915,916,917or980, to do any act of a
kind mentioned in any of the those provisions or sections, and the
person fails to comply with the notice or precept, or where any per-
son fraudulently or negligently makes, delivers, furnishes or produces
any incorrect return, statement, declaration, list, account, particulars
or other document (or knowingly makes any false statement or false
representation) under any of those provisions or sections,Chapter 1
of this Part shall apply to the person for the purposes of capital gains
tax as it applies in the case of a like failure or act for the purposes
of income tax.
CHAPTER 4
Revenue offences
1078.—(1) In this Part—
‘‘the Acts’’ means—
(a) the Customs Acts,
(b) the statutes relating to the duties of excise and to the man-
agement of those duties,
(c) the Tax Acts,
(d) the Capital Gains Tax Acts,
(e) the Value-Added Tax Act, 1972, and the enactments amend-
ing or extending that Act,
(f) the Capital Acquisitions Tax Act, 1976, and the enactments
amending or extending that Act,
(g) the statutes relating to stamp duty and to the management
of that duty, and
(h) Part VI of the Finance Act, 1983,
1349
Penalties for failure
to make returns,
etc. and for
fraudulently or
negligently making
incorrect returns,
etc.
[CGTA75 s51(1)
and Sch4 par3(2)
and (6)] Revenue offences.
[FA83 s94; FA86
s40(2); FA89 s18
and Sch1 par3(2);
FA92 s243; FA96
s132(1) and (2) and
Sch5 PtI par13(2)
and PtII] [No.39.]Taxes Consolidation Act,1997. [1997.] Pt.47 S.1078
1350 and any instruments made thereunder and any instruments made
under any other enactment and relating to tax;
‘‘authorised officer’’ means an officer of the Revenue Commissioners
authorised by them in writing to exercise any of the powers conferred
by the Acts;
‘‘tax’’ means any tax, duty, levy or charge under the care and man-
agement of the Revenue Commissioners.
(2) A person shall, without prejudice to any other penalty to which
the person may be liable, be guilty of an offence under this section
if the person—
(a) knowingly or wilfully delivers any incorrect return, state-
ment or accounts or knowingly or wilfully furnishes any
incorrect information in connection with any tax,
(b) knowingly aids, abets, assists, incites or induces another per-
son to make or deliver knowingly or wilfully any incorrect
return, statement or accounts in connection with any tax,
(c) claims or obtains relief or exemption from, or repayment of,
any tax, being a relief, exemption or repayment to which,
to the person’s knowledge, the person is not entitled,
(d) knowingly or wilfully issues or produces any incorrect
invoice, receipt, instrument or other document in connec-
tion with any tax,
(e) (i) fails to make any deduction required to be made by
the person undersection 257(1),
(ii) fails, having made the deduction, to pay the sum
deducted to the Collector-General within the time
specified in that behalf insection 258(3),or
(iii) fails to pay to the Collector-General an amount on
account of appropriate tax (within the meaning of
Chapter 4ofPart 8) within the time specified in that
behalf insection 258(4),
(f) (i) fails to make any deduction required to be made by
the person undersection 734(5),or
(ii) fails, having made the deduction, to pay the sum
deducted to the Collector-General within the time
specified inparagraph 1(3)ofSchedule 18,
(g) knowingly or wilfully fails to comply with any provision of
the Acts requiring—
(i) the furnishing of a return of income, profits or gains,
or of sources of income, profits or gains, for the pur-
poses of any tax,
(ii) the furnishing of any other return, certificate, notifi-
cation, particulars, or any statement or evidence, for
the purposes of any tax,
(iii) the keeping or retention of books, records, accounts
or other documents for the purposes of any tax, or

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.47 S.1078 (iv) the production of books, records, accounts or other
documents, when so requested, for the purposes of
any tax,
(h) knowingly or wilfully, and within the time limits specified
for their retention, destroys, defaces or conceals from an
authorised officer—
(i) any documents, or
(ii) any other written or printed material in any form,
including any information stored, maintained or pre-
served by means of any mechanical or electronic
device, whether or not stored, maintained or pre-
served in a legible form, which a person is obliged
by any provision of the Acts to keep, to issue or to
produce for inspection,
(i) fails to remit any income tax payable pursuant toChapter 4
ofPart 42, and the regulations under that Chapter, or
value-added tax within the time specified in that behalf
in relation to income tax or value-added tax, as the case
may be, by the Acts, or
(j) obstructs or interferes with any officer of the Revenue Com-
missioners, or any other person, in the exercise or per-
formance of powers or duties under the Acts for the pur-
poses of any tax.
(3) A person convicted of an offence under this section shall be
liable—
(a) on summary conviction to a fine of £1,000 which may be
mitigated to not less than one fourth part of such fine or,
at the discretion of the court, to imprisonment for a term
not exceeding 12 months or to both the fine and the
imprisonment, or
(b) on conviction on indictment, to a fine not exceeding £10,000
or, at the discretion of the court, to imprisonment for a
term not exceeding 5 years or to both the fine and the
imprisonment.
(4) Section 13 of the Criminal Procedure Act, 1967, shall apply in
relation to an offence under this section as if, in place of the penalties
specified in subsection (3) of that section, there were specified in that
subsection the penalties provided for bysubsection (3)(a), and the
reference in subsection (2)(a) of section 13 of the Criminal Pro-
cedure Act, 1967, to the penalties provided for in subsection (3) of
that section shall be construed and apply accordingly.
(5) Where an offence under this section is committed by a body
corporate and the offence is shown to have been committed with the
consent or connivance of any person who, when the offence was
committed, was a director, manager, secretary or other officer of the
body corporate, or a member of the committee of management or
other controlling authority of the body corporate, that person shall
also be deemed to be guilty of the offence and may be proceeded
against and punished accordingly.
(6) In any proceedings under this section, a return or statement
delivered to an inspector or other officer of the Revenue Com-
missioners under any provision of the Acts and purporting to be
1351

[No.39.]Taxes Consolidation Act,1997. [1997.] Pt.47 S.1078
Duties of relevant
person in relation
to certain revenue
offences.
[FA95 s172] 1352 signed by any person shall be deemed until the contrary is proved to
have been so delivered and to have been signed by that person.
(7) Notwithstanding any other enactment, proceedings in respect
of an offence under this section may be instituted within 10 years
from the date of the commission of the offence or incurring of the
penalty, as the case may be.
(8) Section 1 of the Probation of Offenders Act, 1907, shall not
apply in relation to offences under this section.
(9)Sections 987(4)and1052(4),subsections (3)and(7)ofsection
1053, andsections 1068and1069and sections 26(6) and 27(7) of the
Value-Added Tax Act, 1972, shall, with any necessary modifications,
apply for the purposes of this section as they apply for the purposes
of those sections, including, in the case of such of those sections as
are applied by the Capital Gains Tax Acts, the Corporation Tax
Acts, or Part VI of the Finance Act, 1983, the purposes of those
sections as so applied.
1079.—(1) In this section—
‘‘the Acts’’ means—
(a) the Customs Acts,
(b) the statutes relating to the duties of excise and to the man-
agement of those duties,
(c) the Tax Acts,
(d) the Capital Gains Tax Acts,
(e) the Value-Added Tax Act, 1972, and the enactments amend-
ing or extending that Act,
(f) the Capital Acquisitions Tax Act, 1976, and the enactments
amending or extending that Act,
(g) the statutes relating to stamp duty and to the management
of that duty,
and any instruments made thereunder and any instruments made
under any other enactment and relating to tax;
‘‘appropriate officer’’ means any officer nominated by the Revenue
Commissioners to be an appropriate officer for the purposes of this
section;
‘‘company’’ means any body corporate;
‘‘relevant person’’, in relation to a company and subject tosubsection
(2), means a person who—
(a) (i) is an auditor to the company appointed in accordance
with section 160 of the Companies Act, 1963 (as
amended by the Companies Act, 1990), or
(ii) in the case of an industrial and provident society or a
friendly society, is a public auditor to the society for

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.47 S.1079 the purposes of the Industrial and Provident Societ-
ies Acts, 1893 to 1978, and the Friendly Societies
Acts, 1896 to 1977,
or
(b) with a view to reward, assists or advises the company in the
preparation or delivery of any information, declaration,
return, records, accounts or other document which he or
she knows will be or is likely to be used for any purpose
of tax;
‘‘relevant offence’’ means an offence committed by a company which
consists of the company—
(a) knowingly or wilfully delivering any incorrect return, state-
ment or accounts or knowingly or wilfully furnishing or
causing to be furnished any incorrect information in con-
nection with any tax,
(b) knowingly or wilfully claiming or obtaining relief or exemp-
tion from, or repayment of, any tax, being a relief,
exemption or repayment to which there is no entitlement,
(c) knowingly or wilfully issuing or producing any incorrect
invoice, receipt, instrument or other document in connec-
tion with any tax, or
(d) knowingly or wilfully failing to comply with any provision
of the Acts requiring the furnishing of a return of income,
profits or gains, or of sources of income, profits or gains,
for the purposes of any tax, but an offence under this
paragraph committed by a company shall not be a rel-
evant offence if the company has made a return of
income, profits or gains to the Revenue Commissioners
in respect of an accounting period falling wholly or partly
in the period of 3 years preceding the accounting period
in respect of which the offence was committed;
‘‘tax’’ means any tax, duty, levy or charge under the care and man-
agement of the Revenue Commissioners.
(2) For the purposes ofparagraph (b)of the definition of ‘‘relevant
person’’, a person who but for this subsection would be treated as a
relevant person in relation to a company shall not be so treated if
the person assists or advises the company solely in the person’s
capacity as an employee of the company, and a person shall be
treated as assisting or advising the company in that capacity where
the person’s income from assisting or advising the company consists
solely of emoluments to whichChapter 4ofPart 42applies.
(3) If, having regard solely to information obtained in the course
of examining the accounts of a company, or in the course of assisting
or advising a company in the preparation or delivery of any infor-
mation, declaration, return, records, accounts or other document for
the purposes of tax, as the case may be, a person who is a relevant
person in relation to the company becomes aware that the company
has committed, or is in the course of committing, one or more rel-
evant offences, the person shall, if the offence or offences are
material—
1353

[No.39.]Taxes Consolidation Act,1997. [1997.] Pt.47 S.1079
1354 (a) communicate particulars of the offence or offences in writ-
ing to the company without undue delay and request the
company to—
(i) take such action as is necessary for the purposes of
rectifying the matter, or
(ii) notify an appropriate officer of the offence or
offences,
not later than 6 months after the time of communication,
and
(b) (i) unless it is established to the person’s satisfaction that
the necessary action has been taken or notification
made, as the case may be, underparagraph (a), cease
to act as the auditor to the company or to assist or
advise the company in such preparation or delivery
as is specified inparagraph (b)of the definition of
‘‘relevant person’’, and
(ii) shall not so act, assist or advise before a time which is
the earlier of—
(I) 3 years after the time at which the particulars
were communicated underparagraph (a), and
(II) the time at which it is established to the person’s
satisfaction that the necessary action has been
taken or notification made, as the case may be,
underparagraph (a).
(4) Nothing inparagraph (b)ofsubsection (3)shall prevent a per-
son from assisting or advising a company in preparing for, or con-
ducting, legal proceedings, either civil or criminal, which are extant
or pending at a time which is 6 months after the time of communi-
cation underparagraph (a)of that subsection.
(5) Where a person, being in relation to a company a relevant
person within the meaning ofparagraph (a)of the definition of ‘‘rel-
evant person’’, ceases under this section to act as auditor to the com-
pany, then, the person shall deliver—
(a) a notice in writing to the company stating that he or she is
so resigning, and
(b) a copy of the notice to an appropriate officer not later than
14 days after he or she has delivered the notice to the
company.
(6) A person shall be guilty of an offence under this section if the
person—
(a) fails to comply withsubsection (3)or(5),or
(b) knowingly or wilfully makes a communication undersubsec-
tion (3)which is incorrect.
(7) Where a relevant person is convicted of an offence under this
section, the person shall be liable—
(a) on summary conviction, to a fine of £1,000 which may be
mitigated to not less than one-fourth part of such fine, or

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.47 S.1079 (b) on conviction on indictment, to a fine not exceeding £5,000
or, at the discretion of the court, to imprisonment for a
term not exceeding 2 years or to both the fine and the
imprisonment.
(8) Section 13 of the Criminal Procedure Act, 1967, shall apply in
relation to this section as if, in place of the penalties specified in
subsection (3) of that section, there were specified in that subsection
the penalties provided for bysubsection (7)(a), and the reference in
subsection (2)(a) of section 13 of the Criminal Procedure Act, 1967,
to the penalties provided for in subsection (3) of that section shall
be construed and apply accordingly.
(9) Notwithstanding any other enactment, proceedings in respect
of this section may be instituted within 6 years from the time at which
a person is required undersubsection (3)to communicate particulars
of an offence or offences in writing to a company.
(10) It shall be a good defence in a prosecution for an offence
undersubsection (6)(a)in relation to a failure to comply withsubsec-
tion (3)for an accused (being a person who is a relevant person in
relation to a company) to show that he or she was in the ordinary
scope of professional engagement assisting or advising the company
in preparing for legal proceedings and would not have become aware
that one or more relevant offences had been committed by the com-
pany if he or she had not been so assisting or advising.
(11) Where a person who is a relevant person takes any action
required bysubsection (3)or(5), no duty to which the person may
be subject shall be regarded as having been contravened and no liab-
ility or action shall lie against the person in any court for having
taken such action.
(12) The Revenue Commissioners may nominate an officer to be
an appropriate officer for the purposes of this section, and the name
of an officer so nominated and the address to which copies of notices
undersubsection (3)or(5)shall be delivered shall be published in
Iris Oifigiu´
il.
(13) This section shall apply as respects a relevant offence commit-
ted by a company in respect of tax which is—
(a) assessable by reference to accounting periods, for any
accounting period beginning after the 30th day of June,
1995,
(b) assessable by reference to years of assessment, for the year
1995-96 and subsequent years of assessment,
(c) payable by reference to a taxable period, for a taxable per-
iod beginning after the 30th day of June, 1995,
(d) chargeable on gifts or inheritances taken on or after the 30th
day of June, 1995,
(e) chargeable on instruments executed on or after the 30th day
of June, 1995, or
(f) payable in any other case, on or after the 30th day of June,
1995.
1355

[No.39.]Taxes Consolidation Act,1997. [1997.] Pt.47
Interest on overdue
income tax and
corporation tax.
[ITA67 s550(1), (3),
(4) and (5); FA71
s17(2); FA74 s86
and Sch2 PtI;
CTA76 s145(3);
FA78 s46; FA85
s12; FA97 s146(1)
and Sch9 PtI
par10(7)] 1356 CHAPTER 5
Interest on overdue tax
1080.—(1) (a) Subject to this section andsection 1081, any tax
charged by any assessment to income tax or cor-
poration tax 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.
(b) Any tax charged by any assessment to income tax
shall, notwithstanding any appeal against such
assessment, carry interest at the rate of 1.25 per
cent for each month or part of a month from the
date when, if there were no appeal against the
assessment, the tax would become due and payable
undersection 960until payment.
(2) Interest shall not be payable under this section on the tax
charged by any assessment unless the total amount of the interest is
not less than £1.
(3) The interest payable under this section—
(a) shall be payable without any deduction of income tax and
shall not be allowed as a deduction in computing any
income, profits or losses for any of the purposes of the
Tax Acts, and
(b) shall be deemed to be a debt due to the Minister for Finance
for the benefit of the Central Fund and shall be payable
to the Revenue Commissioners,
and, subject tosubsection (4)—
(i) every enactment relating to the recovery of any tax charged
by an assessment,
(ii) every rule of court so relating,
(iii) section 81 of the Bankruptcy Act, 1988, and
(iv) sections 98 and 285 of the Companies Act, 1963,
shall apply to the recovery of any amount of interest payable on that
tax as if that amount of interest were a part of that tax.
(4) In proceedings instituted by virtue ofsubsection (3)—
(a) a certificate by the Collector-General certifying that a stated
amount of interest is due and payable by the person
against whom the proceedings were instituted shall be
evidence until the contrary is proved that that amount is
so due and payable, and
(b) a certificate so certifying and purporting to be signed by the
Collector-General may be tendered in evidence without
proof and shall be deemed until the contrary is proved to
have been signed by the Collector-General.

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.47 1081.—(1) Subject, in the case of income tax, tosubsection (2)—
(a) where relief from income tax or corporation tax charged by
any assessment referred to insection 1080(1)is given to
any person by a discharge of any of that tax, such adjust-
ment shall be made of the amount payable under that
section in relation to the assessment, and such repayment
shall be made of any amounts previously paid under that
section in relation to the assessment, as are necessary to
secure that the total sum, if any, paid or payable under
that section in relation to the assessment is the same as
it would have been if the tax discharged had never been
charged, and
(b) where relief from income tax paid for any year of assess-
ment, or corporation tax paid for any accounting period,
is given to any person by repayment, that person shall be
entitled to require that the amount repaid shall be treated
for the purposes of this subsection to the extent possible
as if it were a discharge of the tax charged on that person
(whether alone or together with other persons) by any
assessment for the same year or, as the case may be, the
same accounting period; but the relief shall not be
applied to any assessment made after the relief was given
and shall not be applied to more than one assessment
so as to reduce without extinguishing the amount of tax
charged thereby.
(2) No relief, whether by means of discharge or repayment, shall
be treated as affecting tax charged by an assessment to income tax
unless it is a relief from income tax.
1082.—(1) In this section, ‘‘neglect’’, in the case of corporation tax,
has the same meaning as insection 919(5)(a)and, in the case of
income tax, has the same meaning as insection 924(2)(a).
(2) Where for any year of assessment or accounting period an
assessment is made for the purpose of recovering an undercharge to
income tax or corporation tax, as the case may be, attributable to
the fraud or neglect of any person, the amount of the tax under-
charged shall carry interest at the rate of 2 per cent for each month
or part of a month from the date or dates on which the tax under-
charged for that year or accounting period, as the case may be, would
have been payable if it had been included in an assessment made—
(a) in the case of income tax, before the 1st day of October in
that year, and
(b) in the case of corporation tax, on the expiration of 6 months
from the end of that accounting period,
to the date of payment of the tax undercharged.
(3) Subject tosubsection (5),section 1080(1)shall not apply to tax
carrying interest under this section.
(4)Subsections (2)to(4)ofsection 1080and, in the case of income
tax,section 1081shall apply to interest chargeable under this section
as they apply to interest chargeable undersection 1080.
(5) Where an assessment of the kind referred to insubsection (2)
is made—
1357Effect on interest of
reliefs given by
discharge or
repayment.
[ITA67 s551(1) and
(2)(a); CTA76
s147(1) and (2)] Interest on overdue
income tax and
corporation tax in
cases of fraud or
neglect.
[FA71 s20(1) to (4)
and (6); FA74 s86
and Sch2 PtI;
CTA76 s145(4);
FA80 s14(2); FA82
s59] [No.39.]Taxes Consolidation Act,1997. [1997.] Pt.47 S.1082
Application of
sections 1080to
1082for capital
gains tax purposes.
[CGTA75 s51(1)
and Sch4 par2(2)] Surcharge for late
returns.
[FA86 s48; FA88
s16; FA90 s25(1);
FA92 s245; FA95
s30(1)] 1358 (a) the inspector concerned shall give notice to the person
assessed that the tax charged by the assessment will carry
interest under this section,
(b) the person assessed may appeal against the assessment on
the ground that interest should not be charged under this
section, and the provisions of the Tax Acts relating to
appeals against assessments shall apply with any neces-
sary modifications in relation to the appeal as they apply
in relation to those appeals, and
(c) if on the appeal it is determined that the tax charged by the
assessment should not carry interest under this section,
section 1080(1)shall apply to that tax.
1083.—Without prejudice tosections 931(2)and976(2),sections
1080to1082shall, subject to any necessary modifications, apply to
capital gains tax.
CHAPTER 6
Other sanctions
1084.—(1) (a) In this section—
‘‘chargeable person’’, in relation to a year of assess-
ment or an accounting period, means a person who
is a chargeable person for the purposes ofPart 41;
‘‘return of income’’ means a return, statement, dec-
laration or list which a person is required to deliver
to the inspector by reason of a notice given by the
inspector under any one or more of the specified
provisions, and includes a return which a chargeable
person is required to deliver undersection 951;
‘‘specified return date for the chargeable period’’ has
the same meaning as insection 950;
‘‘specified provisions’’ meanssections 877to881and
884,paragraphs (a)and(d)ofsection 888(2), and
section 1023;
‘‘tax’’ means income tax, corporation tax or capital
gains tax, as may be appropriate.
(b) For the purposes of this section—
(i) where a person fraudulently or negligently
delivers an incorrect return of income on or
before the specified return date for the charge-
able period, the person shall be deemed to have
failed to deliver the return of income on or
before that date unless the error in the return
of income is remedied on or before that date,
(ii) where a person delivers an incorrect return of
income on or before the specified return date
for the chargeable period but does so neither
fraudulently nor negligently and it comes to the
person’s notice (or, if he or she has died, to the

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.47 S.1084 notice of his or her personal representatives)
that it is incorrect, the person shall be deemed
to have failed to deliver the return of income
on or before the specified return date for the
chargeable period unless the error in the return
of income is remedied without unreasonable
delay,
(iii) where a person delivers a return of income on or
before the specified return date for the charge-
able period but the inspector, by reason of being
dissatisfied with any statement of profits or
gains arising to the person from any trade or
profession which is contained in the return of
income, requires the person, by notice in writing
served on the person undersection 900,todo
any thing, the person shall be deemed not to
have delivered the return of income on or
before the specified return date for the charge-
able period unless the person does that thing
within the time specified in the notice, and
(iv) references to such of the specified provisions as
are applied, subject to any necessary modifi-
cations, in relation to capital gains tax bysection
913shall be construed as including references to
those provisions as so applied.
(2) (a) Subject toparagraph (b), where in relation to a year of
assessment or accounting period a chargeable person fails
to deliver a return of income on or before the specified
return date for the chargeable period, any amount of tax
for that year of assessment or accounting period which
apart from this section is or would be contained in an
assessment to tax made or to be made on the chargeable
person shall be increased by an amount (in this subsec-
tion referred to as ‘‘the surcharge’’) equal to—
(i) 5 per cent of that amount of tax, subject to a
maximum increased amount of £10,000, where the
return of income is delivered before the expiry of 2
months from the specified return date for the charge-
able period, and
(ii) 10 per cent of that amount of tax, subject to a
maximum increased amount of £50,000, where the
return of income is not delivered before the expiry
of 2 months from the specified return date for the
chargeable period,
and, if the tax contained in the assessment is not the
amount of tax as so increased, then, the provisions of the
Tax Acts and the Capital Gains Tax Acts (apart from this
section), including in particular those provisions relating
to the collection and recovery of tax and the payment of
interest on unpaid tax, shall apply as if the tax contained
in the assessment to tax were the amount of tax as so
increased.
(b) In determining the amount of the surcharge, the tax con-
tained in the assessment to tax shall be deemed to be
reduced by the aggregate of—
1359

[No.39.]Taxes Consolidation Act,1997. [1997.] Pt.47 S.1084
Corporation tax —
late returns:
restriction of certain
claims for relief.
[FA92 s55(1) and
(2); FA95 s66(1)
and (2)] 1360 (i) any tax deducted by virtue of any of the provisions of
the Tax Acts or the Capital Gains Tax Acts from any
income, profits or chargeable gains charged in the
assessment to tax in so far as that tax has not been
repaid or is not repayable to the chargeable person
and in so far as the tax so deducted may be set off
against the tax contained in the assessment to tax,
(ii) the amount of any tax credit to which the chargeable
person is entitled in respect of any income, profits or
chargeable gains charged in the assessment to tax,
and
(iii) any other amounts which are set off in the assessment
to tax against the tax contained in that assessment.
(3) In the case of a person—
(a) who is a director within the meaning ofsection 116,or
(b) to whomsection 1017applies and whose spouse is a director
within the meaning ofsection 116,
subsection (2)(b)(i)shall not apply in respect of any tax deducted
underChapter 4ofPart 42in determining the amount of a surcharge
under this section.
(4) (a) Notwithstandingsubsections (1)to(3), the specified
return date for the chargeable period, being a year of
assessment (inparagraph (b)referred to as ‘‘the first-
mentioned year of assessment’’) to whichsection 66(1)
applies, shall be the date which is the specified return
date for the year of assessment following that year.
(b)Paragraph (a)shall only apply if throughout the first-men-
tioned year of assessment the chargeable person or that
person’s spouse, not being a spouse in relation to whom
section 1016applies for that year of assessment, was not
carrying on a trade or profession set up and commenced
in a previous year of assessment.
(5) This section shall apply in relation to an amount of preliminary
tax (within the meaning ofPart 41) whether paid undersection 952
or specified in a notice undersection 953as it applies to an amount
of tax specified in an assessment.
1085.—(1) (a) In this section—
‘‘chargeable period’’ means an accounting period
of a company;
‘‘group relief’’ has the meaning assigned to it by
section 411;
‘‘return of income’’ means a return which a com-
pany is required to deliver undersection 951;
‘‘specified return date for the chargeable period’’
has the same meaning as insection 950.
(b)Subparagraphs (i),(ii)and(iii)ofparagraph (b)of
subsection (1)ofsection 1084shall apply for the

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.47 S.1085 purposes of this section as they apply for the pur-
poses of that section.
(2) Notwithstanding any other provision of the Tax Acts, where in
relation to a chargeable period a company fails to deliver a return of
income for the chargeable period on or before the specified return
date for the chargeable period, then, subject tosubsections (3)and
(4), the following provisions shall apply:
(a) any claim in respect of the chargeable period undersection
308(4),396(2)or399(2)shall be so restricted that the
amount by which the company’s profits of that or any
other chargeable period are to be reduced by virtue of
the claim shall be 50 per cent of the amount it would
have been if this section had not been enacted,
(b) the total amount of group relief which the company may
claim in respect of the chargeable period shall not exceed
50 per cent of the company’s profits of the chargeable
period as reduced by any other relief from tax other than
group relief,
(c) the total amount of the loss referred to insubsection (1)of
section 420for the chargeable period and the total
amount of the excess referred to insubsection (2),(3)or
(6)of that section for that period shall each be treated
for the purposes ofChapter 5ofPart 12as reduced by 50
per cent,
(d) any claim in respect of the chargeable period undersection
160(3)shall be so restricted that the amount of advance
corporation tax which is treated as if it were advance cor-
poration tax paid in respect of distributions made by the
company in any preceding chargeable period shall be 50
per cent of the amount which would have been so treated
if this section had not been enacted, and
(e) the company may not surrender undersection 166(1)more
than 50 per cent of the excess of the total amount of
advance corporation tax it has paid (and which has not
been repaid) in respect of a dividend or dividends paid
by it in the chargeable period over the amount of such
advance corporation tax which undersection 160(2)is set
against its liability to corporation tax for the chargeable
period.
(3) Subject tosubsection (4), any restriction or reduction imposed
byparagraph (a),(b),(c),(d)or(e)ofsubsection (2)in respect of a
chargeable period in the case of a company which fails to deliver a
return of income on or before the specified return date for the
chargeable period shall apply subject to—
(a) in the case of the restrictions or reductions imposed bypara-
graph (a),(b)or(c)ofsubsection (2), a maximum restric-
tion or reduction, as the case may be, of £125,000 in each
case for the chargeable period, and
(b) in the case of the restrictions imposed byparagraph (d)or
(e)ofsubsection (2), a maximum restriction of £50,000 in
each case for the chargeable period.
(4) Where in relation to a chargeable period a company, having
failed to deliver a return of income on or before the specified return
1361

[No.39.]Taxes Consolidation Act,1997. [1997.] Pt.47 S.1085
Publication of
names of tax
defaulters.
[FA83 s23; FA92
s240(b);
WCTIPA93 s3(7);
FA97 s158] 1362 date for the chargeable period, delivers that return before the expiry
of 2 months from the specified return date for the chargeable period,
paragraphs (a)to(e)ofsubsection (2)shall apply—
(a) as if the references in those paragraphs to ‘‘50 per cent’’
were references to ‘‘75 per cent’’ in the case ofpara-
graphs (a),(b),(d)and(e)and ‘‘25 per cent’’ in the case
ofparagraph (c), and
(b) subject to—
(i) in the case of the restrictions or reductions imposed
byparagraph (a),(b)or(c)ofsubsection (2),a
maximum restriction or reduction, as the case may
be, of £25,000 in each case for the chargeable period,
and
(ii) in the case of the restrictions imposed byparagraph
(d)or(e)ofsubsection (2), a maximum restriction of
£10,000 in each case for the chargeable period.
1086.—(1) In this section—
‘‘the Acts’’ means—
(a) the Tax Acts,
(b) the Capital Gains Tax Acts,
(c) the Value-Added Tax Act, 1972, and the enactments amend-
ing or extending that Act,
(d) the Capital Acquisitions Tax Act, 1976, and the enactments
amending or extending that Act,
(e) the statutes relating to stamp duty and to the management
of that duty, and
(f) Part VI of the Finance Act, 1983,
and any instruments made thereunder;
‘‘tax’’ means income tax, capital gains tax, corporation tax, value-
added tax, gift tax, inheritance tax, residential property tax and
stamp duty.
(2) The Revenue Commissioners shall, as respects each relevant
period (being the period beginning on the 1st day of January, 1997,
and ending on the 30th day of June, 1997, and each subsequent per-
iod of 3 months beginning with the period ending on the 30th day of
September, 1997), compile a list of the names and addresses and the
occupations or descriptions of every person—
(a) on whom a fine or other penalty was imposed by a court
under any of the Acts during that relevant period,
(b) on whom a fine or other penalty was otherwise imposed by
a court during that relevant period in respect of an act or
omission by the person in relation to tax, or
(c) in whose case the Revenue Commissioners, pursuant to an
agreement made with the person in that relevant period,

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.47 S.1086 refrained from initiating proceedings for the recovery of
any fine or penalty of the kind mentioned inparagraphs
(a)and(b)and, in place of initiating such proceedings,
accepted or undertook to accept a specified sum of
money in settlement of any claim by the Revenue Com-
missioners in respect of any specified liability of the per-
son under any of the Acts for—
(i) payment of any tax,
(ii) payment of interest on that tax, and
(iii) a fine or other monetary penalty in respect of that
tax.
(3) Notwithstanding any obligation as to secrecy imposed on them
by the Acts or the Official Secrets Act, 1963—
(a) the Revenue Commissioners shall, before the expiration of
3 months from the end of each relevant period, cause
each such list referred to insubsection (2)in relation to
that period to be published in Iris Oifigiu´
il, and
(b) the Revenue Commissioners may at any time cause any such
list referred to insubsection (2)to be publicised in such
manner as they shall consider appropriate.
(4)Paragraph (c)ofsubsection (2)shall not apply in relation to a
person in whose case—
(a) the Revenue Commissioners are satisfied that, before any
investigation or inquiry had been commenced by them or
by any of their officers into any matter occasioning a liab-
ility referred to in that paragraph of the person, the per-
son had voluntarily furnished to them complete infor-
mation in relation to and full particulars of that matter,
(b) section 72 of the Finance Act, 1988, or section 3 of the
Waiver of Certain Tax, Interest and Penalties Act, 1993,
applied, or
(c) the specified sum referred to inparagraph (c)ofsubsection
(2)does not exceed £10,000.
(5) Any list referred to insubsection (2)shall specify in respect
of each person named in the list such particulars as the Revenue
Commissioners think fit—
(a) of the matter occasioning the fine or penalty of the kind
referred to insubsection (2)imposed on the person or, as
the case may be, the liability of that kind to which the
person was subject, and
(b) of any interest, fine or other monetary penalty, and of any
other penalty or sanction, to which that person was liable,
or which was imposed on that person by a court, and
which was occasioned by the matter referred to inpara-
graph (a).
1363

[No.39.]Taxes Consolidation Act,1997. [1997.] Charge and
deduction of
income tax not
charged or
deducted before
passing of annual
Act.
[ITA67 s8 and
s93(3); FA69 s 29;
FA72 s12 and Sch3;
CTA76 s140(1) and
Sch2 PtI par2] 1364 PART 48
Miscellaneous and Supplemental
1087.—(1) Where in any year of assessment any payments have
been made, before the passing of an Act increasing the rate of
income tax for that year, on account of any interest, dividends or
other annual profits or gains from which under the Tax Acts income
tax is required to be deducted and tax has not been charged on or
deducted from those payments, or has not been charged on or
deducted from those payments at the increased rate of tax for that
year—
(a) the amount not so charged or deducted shall be charged
under Case IV of Schedule D in respect of those pay-
ments as profits or gains not charged by virtue of any
other Schedule, and
(b) the agents entrusted with the payment of the interest, divid-
ends or annual profits or gains shall furnish to the Rev-
enue Commissioners a list containing—
(i) the names and addresses of the persons to whom pay-
ments have been made, and
(ii) the amount of those payments,
on a requisition made by the Revenue Commissioners in
that behalf.
(2) Any person liable to pay any rent, interest or annuity, or to
make any other annual payment, including a payment to which
section 104applies (not being a payment of rent, interest or
annuity)—
(a) shall be authorised—
(i) to make any deduction on account of income tax for
any year of assessment which that person has failed
to make before the passing of an Act increasing the
rate of tax for that year, or
(ii) to make up any deficiency in any such deduction
which has been so made,
on the occasion of the next payment of the rent, interest
or annuity, or the making of the other annual payment,
including a payment to whichsection 104applies (not
being a payment of rent, interest or annuity), after the
passing of the Act so increasing the rate of tax, in
addition to any other deduction which that person may
be by law authorised to make, and
(b) shall also be entitled, if there is no future payment from
which the deduction may be made, to recover the sum
which might have been deducted as if it were a debt due
from the person as against whom the deduction could
originally have been made if the Act increasing the rate
of tax for the year had been in force.
(3) This section shall not apply to a payment which is a distribution
within the meaning ofChapter 2ofPart 6.

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.48 1088.—(1) In determining the amount of profits or gains for the
purpose of income tax—
(a) no deductions shall be made other than those expressly pro-
vided for by the Income Tax Acts, and
(b) no deduction shall be made on account of any annuity or
other annual payment (other than interest) to be paid out
of such profits or gains in regard that a proportionate
part of the income tax is allowed to be deducted on mak-
ing any such payment.
(2) In determining the amount of profits or gains from any prop-
erty described in the Income Tax Acts or from any office or employ-
ment of profit, no deduction shall be made on account of diminution
of capital employed, or of loss sustained, in any trade or in any pro-
fession or employment.
1089.—(1) Interest payable under—
(a) section 15 of the Stamp Act, 1891, and subsections (2) and
(3) of section 69 of the Finance Act, 1973,
(b) section 21 of the Value-Added Tax Act, 1972, or
(c)section 531(9)or991,
shall be payable without any deduction of income tax and shall not
be allowed in computing any income, profits or losses for any of the
purposes of the Income Tax Acts.
(2) Interest payable under section 18 of the Wealth Tax Act, 1975,
or section 41 of the Capital Acquisitions Tax Act, 1976, shall not be
allowed in computing any income, profits or losses for any of the
purposes of the Tax Acts.
1090.—Where an assessment has become final and conclusive for
the purposes of income tax for any year of assessment, that assess-
ment shall also be final and conclusive in estimating total income
from all sources for the purposes of the Income Tax Acts, and no
allowance or adjustment of liability, on the ground of diminution of
income or loss, shall be taken into account in estimating such total
income from all sources for such purposes unless that allowance or
adjustment has been previously made on an application under the
special provisions of the Income Tax Acts relating to that allowance
or adjustment.
1091.—(1) In this section, ‘‘company’’ means a company within the
meaning of the Companies Act, 1963, and a company created by
letters patent or by or in pursuance of any statute.
(2) Every warrant, cheque or other order sent or delivered for the
purpose of paying any interest which is not a distribution within the
meaning of the Corporation Tax Acts by a company which is entitled
to deduct income tax from such interest shall have annexed to it, or
be accompanied by, a statement in writing showing—
(a) the gross amount which, after deduction of the income tax
appropriate to such interest, corresponds to the net
amount actually paid,
1365Restriction on
deductions in
computing profits.
[ITA67 s535; FA74
s51] Status of interest on
certain unpaid taxes
and duties.
[FA73 s35; FA75
s27; FA76 s29] Income tax
assessment to be
conclusive of total
income.
[ITA67 s534] Annexation of
statements to
interest warrants,
etc.
[ITA67 s458;
CTA76 s140(1) and
Sch2 PtI par25] [No.39.]Taxes Consolidation Act,1997. [1997.] Pt.48 S.1091
Disclosure of
certain information
to rating
authorities, etc.
[FA78 s47; FA80
s89] Disclosure of
information to
Ombudsman.
[FA81 s52] 1366 (b) the rate and amount of income tax appropriate to such gross
amount, and
(c) the net amount actually paid.
(3) A company which fails to comply withsubsection (2)shall incur
a penalty of £10 in respect of each offence but the aggregate amount
of the penalties imposed under this section on any company in
respect of offences connected with any one payment or distribution
of interest shall not exceed £100.
1092.—(1) This section shall apply to any charge imposed on pub-
lic moneys, being a charge for the purposes of relief (in this section
referred to as ‘‘the relief’’) under the Rates on Agricultural Land
(Relief) Acts, 1939 to 1980, and any subsequent enactment together
with which those Acts may be cited.
(2) Where a charge to which this section applies is to be made, the
Revenue Commissioners or any officer authorised by them for that
purpose may, in connection with the establishment of title to the
relief of a person (in this subsection referred to as ‘‘the claimant’’),
notwithstanding any obligation as to secrecy imposed on them under
the Income Tax Acts or under any other enactment, disclose to any
person specified incolumn (1)of the Table to this section infor-
mation of the kind specified incolumn (2)of that Table, being infor-
mation in respect of the claimant which is required by that person
when considering the claimant’s title to the relief.
(3) In the Table to this section, ‘‘occupation’’ has the same mean-
ing as insection 654, and ‘‘rating authority’’ has the same meaning
as insection 898.
TABLE
(1) (2)
Persons to whom information to Information to be given
be given
The secretary or clerk, or a per- Information relating to the occu-
son acting as such, to a rating pation of land by the claimant
authority or any officer of the and the rateable valuation of
Minister for the Environment such land.
and Local Government author-
ised by that Minister for the pur-
pose of this section.
1093.—Any obligation to maintain secrecy or other restriction on
the disclosure or production of information (including documents)
obtained by or furnished to the Revenue Commissioners, or any per-
son on their behalf, for taxation purposes, shall not apply to the
disclosure or production of information (including documents) to the
Ombudsman for the purposes of an examination or investigation by
the Ombudsman under the Ombudsman Act, 1980, of any action
(within the meaning of that Act) taken by or on behalf of the Rev-
enue Commissioners, being such an action taken in the performance
of administrative functions in respect of any tax or duty under the
care and management of the Revenue Commissioners.

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.48 1094.—(1) In this section—
‘‘the Acts’’ means—
(a) the Tax Acts,
(b) the Capital Gains Tax Acts, and
(c) the Value-Added Tax Act, 1972, and the enactments amend-
ing or extending that Act,
and any instruments made thereunder;
‘‘beneficial holder of a licence’’ means the person who conducts the
activities under the licence and, in relation to a licence issued under
the Auctioneers and House Agents Act, 1947, includes the author-
ised individual referred to in section 8(4), or the nominated individ-
ual referred to in section 9(1), of that Act;
‘‘licence’’ means a licence or authorisation, as the case may be, of
the kind referred to in—
(a) the proviso (inserted by section 156 of the Finance Act,
1992) to section 49(1) of the Finance (1909-1910) Act,
1910,
(b) the further proviso (inserted by section 79(1) of the Finance
Act, 1993) to section 49(1) of the Finance (1909-1910)
Act, 1910,
(c) the proviso (inserted by section 79(2) of the Finance Act,
1993) to section 7(3) of the Betting Act, 1931,
(d) the proviso (inserted by section 79(3) of the Finance Act,
1993) to section 19 of the Gaming and Lotteries Act,
1956,
(e) the proviso (inserted by section 79(4)(a) of the Finance Act,
1993) to subsection (1) of section 8 of the Auctioneers
and House Agents Act, 1947,
(f) the proviso (inserted by section 79(4)(b) of the Finance Act,
1993) to subsection (1) of section 9 of the Auctioneers
and House Agents Act, 1947 (an auction permit under
that section being deemed for the purposes of this section
to be a licence),
(g) the proviso (inserted by section 79(4)(c) of the Finance Act,
1993) to subsection (1) of section 10 of the Auctioneers
and House Agents Act, 1947,
(h) the proviso (inserted by section 79(5) of the Finance Act,
1993) to paragraph 12(12) of the Imposition of Duties
(No. 221) (Excise Duties) Order, 1975 (S.I. No. 307 of
1975),
(i) the proviso (inserted by section 79(6) of the Finance Act,
1993) to paragraph (b) of subsection (3) of section 45 of
the Finance Act, 1989, and
(j) section 93, 116 or 144 of the Consumer Credit Act, 1995;
1367Tax clearance
certificates in
relation to certain
licences.
[FA92 s242; FA93
s140; FA97 s160(1)] [No.39.]Taxes Consolidation Act,1997. [1997.] Pt.48 S.1094
1368 ‘‘specified date’’ means the date of commencement of a licence
sought to be granted under any of the provisions referred to inpara-
graphs (a)to(i)of the definition of ‘‘licence’’ as specified for the
purposes of a tax clearance certificate undersubsection (2);
‘‘tax clearance certificate’’ shall be construed in accordance withsub-
section (2).
(2) Subject tosubsection (3), the Collector-General shall, on an
application to him or her by the person who will be the beneficial
holder of a licence due to commence on a specified date, issue a
certificate (in this section referred to as a ‘‘tax clearance certificate’’)
for the purposes of the grant of a licence if—
(a) that person and, in respect of the period of that person’s
membership, any partnership of which that person is or
was a partner,
(b) in a case where that person is a partnership, each partner,
(c) in a case where that person is a company, each person who
is either the beneficial owner of, or able directly or
indirectly to control, more than 50 per cent of the ordi-
nary share capital of the company,
has or have complied with all the obligations imposed on that person
or on them by the Acts in relation to—
(i) the payment or remittance of the taxes, interest and penal-
ties required to be paid or remitted under the Acts, and
(ii) the delivery of returns.
(3) Subject tosubsection (4), where a person (in this section
referred to as ‘‘the first-mentioned person’’) will be the beneficial
holder of a licence due to commence on a specified date and another
person (in this section referred to as ‘‘the second-mentioned
person’’) was the beneficial holder of the licence at any time during
the year ending on that date, and—
(a) the second-mentioned person is a company connected
(within the meaning ofsection 10as it applies for the
purposes of the Tax Acts) with the first-mentioned per-
son or would have been such a company but for the fact
that the company has been wound up or dissolved with-
out being wound up,
(b) the second-mentioned person is a company and the first-
mentioned person is a partnership in which—
(i) a partner is or was able, or
(ii) where more than one partner is a shareholder, those
partners together are or were able,
directly or indirectly, whether with or without a connec-
ted person or connected persons (within the meaning of
section 10as it applies for the purposes of the Tax Acts),
to control more than 50 per cent of the ordinary share
capital of the company, or
(c) the second-mentioned person is a partnership and the first-
mentioned person is a company in which—

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.48 S.1094 (i) a partner is or was able, or
(ii) where more than one partner is a shareholder, those
partners together are or were able,
directly or indirectly, whether with or without a connec-
ted person or connected persons (within the meaning of
section 10as it applies for the purposes of the Tax Acts),
to control more than 50 per cent of the ordinary share
capital of the company,
then, a tax clearance certificate shall not be issued by the Collector-
General undersubsection (2)unless, in relation to the activities con-
ducted under the licence, the second-mentioned person has complied
with the second-mentioned person’s obligations under the Acts as
specified insubsection (2).
(4)Subsection (3)shall not apply to a transfer of a licence effected
before the 24th day of April, 1992, or to such transfer effected after
that date where a contract for the sale or lease of the premises to
which the licence relates was signed before that date.
(5) An application for a tax clearance certificate under this section
shall be made to the Collector-General in a form prescribed by the
Revenue Commissioners and shall specify the commencement date
of the licence to which the application relates and, where that licence
is for a period of less than one year, the licensing period.
(6) Where an application for a tax clearance certificate under this
section is refused by the Collector-General, he or she shall as soon
as is practicable communicate in writing such refusal and the grounds
for such refusal to the person concerned.
(7) (a) Where an application under this section to the Collector-
General for a tax clearance certificate is refused, the per-
son aggrieved by the refusal may, by notice in writing
given to the Collector-General within 30 days of the
refusal, apply to have such person’s application heard and
determined by the Appeal Commissioners; but no right
of appeal shall exist by virtue of this section in relation
to any amount of tax or interest due under the Acts.
(b) A notice underparagraph (a)shall be valid only if—
(i) that notice specifies—
(I) the matter or matters with which the person is
aggrieved, and
(II) the grounds in detail of the person’s appeal as
respects each such matter,
and
(ii) any amount under the Acts which is due to be remit-
ted or paid, and which is not in dispute, is duly remit-
ted or paid.
(c) The Appeal Commissioners shall hear and determine an
appeal made to them under this subsection as if it were
an appeal against an assessment to income tax and, sub-
ject toparagraph (d), the provisions of the Income Tax
Acts relating to such an appeal (including the provisions
1369

[No.39.]Taxes Consolidation Act,1997. [1997.] Pt.48 S.1094
Tax clearance
certificates in
relation to public
sector contracts.
[FA95 s177(1) to
(6); FA96 s132(1)
and Sch5 PtI par19] 1370 relating to the rehearing of an appeal and to the state-
ment of a case for the opinion of the High Court on a
point of law) shall apply accordingly with any necessary
modifications.
(d) On the hearing of an appeal made under this subsection,
the Appeal Commissioners shall have regard to all mat-
ters to which the Collector-General is required to have
regard under this section.
1095.—(1) In this section—
‘‘the Acts’’ means—
(a) the Tax Acts,
(b) the Capital Gains Tax Acts, and
(c) the Value-Added Tax Act, 1972, and the enactments amend-
ing or extending that Act,
and any instruments made thereunder;
‘‘the scheme’’ means a scheme of the Department of Finance for the
time being in force requiring persons to show, by means of tax clear-
ance certificates, compliance with the obligations imposed by the
Acts in relation to the matters specified insubsection (2)before the
award to them of contracts that are specified in a circular of the
Department of Finance entitled ‘‘Tax Clearance Procedures — Pub-
lic Sector Contracts’’, numbered F 49/24/84 and issued on the 30th
day of July, 1991, or any such circular amending or replacing that
circular;
‘‘tax clearance certificate’’ shall be construed in accordance withsub-
section (2).
(2) Subject to this section, where a person who is in compliance
with the obligations imposed on the person by the Acts in relation
to—
(a) the payment or remittance of any taxes, interest or penalties
required to be paid or remitted under the Acts to the
Revenue Commissioners, and
(b) the delivery of any returns required to be made under the
Acts,
applies to the Collector-General in that behalf for the purposes of
the scheme, the Collector-General shall issue to the person a certifi-
cate (in this section referred to as a ‘‘tax clearance certificate’’) stat-
ing that the person is in compliance with those obligations.
(3) A tax clearance certificate shall not be issued to a person
unless—
(a) the person and, in respect of the period of the person’s
membership, any partnership of which the person is or
was a member,
(b) in a case where the person is a partnership, each person who
is a member of the partnership, and

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.48 S.1095 (c) in a case where the person is a company, each person who
is either the beneficial owner of, or able directly or
indirectly to control, more than 50 per cent of the ordi-
nary share capital of the company,
is in compliance with the obligations imposed on the person and each
other person (including any partnership) by the Acts in relation to
the matters specified inparagraphs (a)and(b)ofsubsection (2).
(4) Where a person (in this subsection referred to as ‘‘the first-
mentioned person’’) applies for a tax clearance certificate in accord-
ance withsubsection (2)and the business activity to which the appli-
cation relates was previously carried on by, or was previously carried
on as part of a business activity carried on by, another person (in
this subsection referred to as ‘‘the second-mentioned person’’) and—
(a) the second-mentioned person is a company which is connec-
ted (within the meaning ofsection 10as it applies for the
purposes of the Tax Acts) with the first-mentioned per-
son or would have been such a company but for the fact
that the company has been wound up or dissolved with-
out being wound up,
(b) the second-mentioned person is a company and the first-
mentioned person is a partnership and—
(i) a member of the partnership is or was able, or
(ii) where more than one such member is a shareholder
of the company, those members acting together are
or were able,
directly or indirectly, whether with or without a connec-
ted person or connected persons (within the meaning of
section 10as it applies for the purposes of the Tax Acts),
to control more than 50 per cent of the ordinary share
capital of the company, or
(c) the second-mentioned person is a partnership and the first-
mentioned person is a company and—
(i) a member of the partnership is or was able, or
(ii) where more than one such member is a shareholder
of the company, those members acting together are
or were able,
directly or indirectly, whether with or without a connec-
ted person or connected persons (within the meaning of
section 10as it applies for the purposes of the Tax Acts),
to control more than 50 per cent of the ordinary share
capital of the company,
then, a tax clearance certificate shall not be issued to the first-men-
tioned person unless, in relation to the business activity to which the
application relates, the second-mentioned person is in compliance
with the obligations imposed on that person by the Acts in relation
to the matters specified inparagraphs (a)and(b)ofsubsection (2).
(5)Subsection (4)shall not apply to a business the transfer of
which was effected before the 9th day of May, 1995, or a business
the transfer of which is or was effected after that date if a contract
for the transfer was made before that date.
1371

[No.39.]Taxes Consolidation Act,1997. [1997.] Pt.48 S.1095
Assessment of
Electricity Supply
Board.
[ITA67 s545(1)] Commencement.
1372 (6)Subsections (5),(6)and(7)ofsection 1094shall, with any
necessary modifications, apply to an application for a tax clearance
certificate under this section as they apply to an application for a tax
clearance certificate under that section.
(7) A tax clearance certificate shall be valid for the period speci-
fied in the certificate.
1096.—For the purpose of determining liability for assessment to
and payment of income tax, the Electricity Supply Board is not and
never was the State or a branch or department of the Government
of the State.
PART 49
Commencement, Repeals, Transitional Provisions, Etc.
1097.—(1) Except where otherwise provided by or under this Act,
this Act shall be deemed to have come into force—
(a) in relation to income tax, for the year 1997-98 and sub-
sequent years of assessment,
(b) in relation to corporation tax, for accounting periods ending
on or after the 6th day of April, 1997, and
(c) in relation to capital gains tax, for the year 1997-98 and sub-
sequent years of assessment.
(2) So much of any provision of this Act as—
(a) authorises the making, variation or revocation of any order
or regulation or other instrument,
(b) relates to the making of a return, the furnishing of a certifi-
cate or statement or the giving of any information, includ-
ing any such provision which imposes a duty or obligation
on—
(i) the Revenue Commissioners or on an inspector or
other officer of the Revenue Commissioners, or
(ii) any other person,
(c) imposes a fine, forfeiture or penalty,
(d) (i) except where the tax concerned is all income tax for
years of assessment before the year 1997-98, confers
any power or imposes any duty or obligation the
exercise or performance of which operates or may
operate in relation to income tax for more than one
year of assessment,
(ii) except where the tax concerned is all corporation tax
for accounting periods ending before the 6th day of
April, 1997, confers any power or imposes any duty
or obligation the exercise or performance of which
operates or may operate in relation to corporation
tax for more than one accounting period, and

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.49 S.1097 (iii) except where the tax concerned is all capital gains tax
for years of assessment before the year 1997-98, con-
fers any power or imposes any duty or obligation the
exercise or performance of which operates or may
operate in relation to capital gains tax for more than
one year of assessment,
and
(e) relates to any tax or duty, other than income tax, corpor-
ation tax or capital gains tax,
shall be deemed to have come into force on the 6th day of April,
1997, in substitution for the corresponding provisions of the repealed
enactments.
(3) For the purposes ofsubsection (2), anything done under or
in connection with the provisions of the repealed enactments which
correspond to the provisions of this Act referred to in that subsection
shall be deemed to have been done under or in connection with
the provisions of this Act to which those provisions of the repealed
enactments correspond; but nothing in this subsection shall affect the
operation ofsubsections (3)and(4)ofsection 1102.
(4) Notwithstandingsubsection (2), any provision of the repealed
enactments which imposes a fine, forfeiture, penalty or punishment
for any act or omission shall, in relation to any act or omission which
took place or began before the 6th day of April, 1997, continue to
apply in substitution for the provision of this Act to which it cor-
responds.
(5) If, and in so far as, by virtue ofsubsection (2), a provision of
this Act operates from the 6th day of April, 1997, in substitution for
a provision of the repealed enactments, any order or regulation made
or having effect as if made, and any thing done or having effect as if
done, under the excluded provision before that date shall be treated
as from that date as if it were an order or regulation made or a thing
done under that provision of this Act.
1098.—(1) The enactments mentioned incolumn (2)ofSchedule
30(which in this Act are referred to as ‘‘the repealed enactments’’)
are hereby repealed as on and from the 6th day of April, 1997, to
the extent specified incolumn (3)of that Schedule.
(2)Subsection (1)shall come into force in accordance withsection
1097, and accordingly, except where otherwise provided by that
section, this Act shall not apply—
(a) to income tax for the year 1996-97 or any previous year of
assessment,
(b) to corporation tax for accounting periods ending before the
6th day of April, 1997, and
(c) to capital gains tax for the year 1996-97 or any previous year
of assessment,
and the repealed enactments shall continue to apply—
(i) to income tax for any year mentioned inparagraph (a),
1373
Repeals.

[No.39.]Taxes Consolidation Act,1997. [1997.] Pt.49 S.1098
Saving for
enactments not
repealed.
Consequential
amendments to
other enactments.
Transitional
provisions.
Continuity and
construction of
certain references
to old and new law.
1374 (ii) to corporation tax for any period mentioned inparagraph
(b), and
(iii) to capital gains tax for any year mentioned inparagraph (c),
to the same extent that they would have applied if this Act had not
been enacted.
1099.—This Act (other thansubsections (2)to(4)ofsection 1102)
shall apply subject to so much of any Act as contains provisions relat-
ing to or affecting income tax, corporation tax or capital gains tax
as—
(a) is not repealed by this Act, and
(b) would have operated in relation to those taxes respectively
if this Act had not been substituted for the repealed
enactments.
1100.—Schedule 31, which provides for amendments to other
enactments consequential on the passing of this Act, shall apply for
the purposes of this Act.
1101.—Schedule 32, which contains transitional provisions, shall
apply for the purposes of this Act.
1102.—(1) The Revenue Commissioners shall have all the juris-
dictions, powers and duties in relation to tax under this Act which
they had before the passing of this Act.
(2) The continuity of the operation of the law relating to income
tax, corporation tax and capital gains tax shall not be affected by the
substitution of this Act for the repealed enactments.
(3) Any reference, whether express or implied, in any enactment
or document (including this Act and any Act amended by this Act)—
(a) to any provision of this Act, or
(b) to things done or to be done under or for the purposes of
any provision of this Act,
shall, if and in so far as the nature of the reference permits, be con-
strued as including, in relation to the times, years or periods, circum-
stances or purposes in relation to which the corresponding provision
in the repealed enactments applied or had applied, a reference to,
or, as the case may be, to things done or to be done under or for the
purposes of that corresponding provision.
(4) Any reference, whether express or implied, in any enactment
or document (including the repealed enactments and enactments
passed and documents made after the passing of this Act)—
(a) to any provision of the repealed enactments, or
(b) to things done or to be done under or for the purposes of
any provision of the repealed enactments,

[1997.]Taxes Consolidation Act,1997. [No.39.] Pt.49 S.1102 shall, if and in so far as the nature of the reference permits, be con-
strued as including, in relation to the times, years or periods, circum-
stances or purposes in relation to which the corresponding provision
of this Act applies, a reference to, or as the case may be, to things
done or deemed to be done or to be done under or for the purposes
of that corresponding provision.
(5) Notwithstanding any other provision of this Act, no act,
whether of commission or omission, which was committed or
occurred before the 6th day of April, 1997, and was not an offence
at the time of commission or omission, shall be an offence in the
period from the 6th day of April, 1997, to the date of the passing of
this Act.
1103.—(1) All officers appointed under the repealed enactments
and holding office immediately before the commencement of this
Act shall continue in office as if appointed under this Act.
(2) All officers who immediately before the commencement of this
Act stood authorised or nominated for the purposes of any provision
of the repealed enactments shall be deemed to be authorised or
nominated, as the case may be, for the purposes of the corresponding
provision of this Act.
(3) All instruments, documents, authorisations and letters or
notices of appointment made or issued under the repealed enact-
ments and in force immediately before the commencement of this
Act shall continue in force as if made or issued under this Act.
1104.—(1) This Act may be cited as the Taxes Consolidation Act,
1997.
(2)Sections 7,858,859,872(1),905,906,910,912,1002,1078,1079
and1093(in so far as relating to Customs) shall be construed
together with the Customs Acts and (in so far as relating to duties
of excise) shall be construed together with the statutes which relate
to the duties of excise and to the management of those duties.
(3)Sections 7,811,858,859,872(1),887,905,906,910and912,
subsections (2)and(3)ofsection 928, andsections 1001,1002,1006,
1078,1079,1086,1093,1094and1095(in so far as relating to value-
added tax) shall be construed together with the Value-Added Tax
Acts, 1972 to 1997.
(4)Sections 7,8,811,858, 859,872(1),875,905,906,910,1002,
1078,1079,1086and1093(in so far as relating to stamp duties) shall
be construed together with the Stamp Act, 1891, and the enactments
amending or extending that Act.
(5)Sections 7,8,811,858,859,872(1),887,905,906,910, 912,1002,
1003,1006,1078,1079,1086and1093(in so far as relating to capital
acquisitions tax) andPart 34(in so far as relating to capital acquis-
itions tax) shall be construed together with the Capital Acquisitions
Tax Act, 1976, and the enactments amending or extending that Act.
(6)Sections 7,811, 859,872(1),887,905,906,910,912, 1006,1078,
1086and1093(in so far as they relate to Part VI of the Finance
Act, 1983) shall be construed together with that Part and enactments
amending or extending that Part.
1375
Continuance of
officers, instruments
and documents.
Short title and
construction.

[No.39.]Taxes Consolidation Act,1997. [1997.] Sections 13and
567(4).
[FA73 Sch3 pars1,
3, 4, 5, 7 and 8;
CTA76 s140(1) and
Sch2 PtI par36(1)
and (3) and s164
and Sch3 PtII] 1376 SCHEDULE 1
Supplementary Provisions Concerning the Extension of Charge
to Tax to Profits and Income Derived from Activities Carried
On and Employments Exercised on the Continental Shelf
Information
1. The holder of a licence granted under the Petroleum and Other
Minerals Development Act, 1960, shall, if required to do so by a
notice served on such holder by an inspector, give to the inspector
within the time limited by the notice (which shall not be less than 30
days) such particulars as may be required by the notice of—
(a) transactions in connection with activities authorised by the
licence as a result of which any person is or might be
liable to income tax by virtue ofsection 13or to corpor-
ation tax by virtue of that section as applied bysection
23, and
(b) emoluments paid or payable in respect of duties performed
in an area in which those activities may be carried on
under the licence and the persons to whom they were
paid or are payable,
and shall take reasonable steps to obtain the information necessary
to enable such holder to comply with the notice.
Collection
2. (1) Subject to the following provisions of this Schedule, where
any income tax is assessed by virtue ofsection 13, or any corporation
tax is assessed by virtue of that section as applied bysection 23,on
a person not resident in the State in respect of—
(a) profits or gains from activities authorised, or carried on in
connection with activities authorised, by a licence granted
under the Petroleum and Other Minerals Development
Act, 1960, or
(b) profits or gains arising from exploration or exploitation
rights connected with activities so authorised or carried
on,
and any of the tax remains unpaid later than 30 days after it has
become due and payable, the Revenue Commissioners may serve a
notice on the holder of the licence (in this paragraph referred to as
‘‘the holder’’) specifying particulars of the assessment, the amount
of tax remaining unpaid and the date when it became payable, and
requiring the holder to pay that amount, together with any interest
due on that amount undersection 1080, within 30 days of the service
of the notice.
(2) Any amount of tax which the holder is required to pay by a
notice under this paragraph may be recovered from the holder as if
it were tax due and duly demanded from the holder, and the holder
may recover any such amount paid by the holder from the person
on whom the assessment was made as a simple contract debt in any
court of competent jurisdiction.
3.Paragraph 2shall not apply to any assessment to income tax
on emoluments from an office or employment referred to insection
13(5).

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.1 4.Paragraph 2shall not apply if the profits or gains in respect of
which the relevant assessment was made arose to the person on
whom it was made in consequence of a contract made by the holder
of the licence before the 16th day of May, 1973, unless that person
is a person connected with the holder of the licence or the contract
was varied on or after that date.
5. Where, on an application made by a person who will or might
become liable to tax which if remaining unpaid could be recovered
underparagraph 2from the holder of a licence, the Revenue Com-
missioners are satisfied that the applicant will comply with any obli-
gations imposed on the applicant by the Tax Acts, they may issue a
certificate to the holder of the licence exempting that holder from
the application of that paragraph with respect to any tax payable by
the applicant and, where such a certificate is issued, that paragraph
shall not apply to any such tax which becomes due while the certifi-
cate is in force.
6. The Revenue Commissioners may, by notice in writing given to
the holder of a certificate issued underparagraph 5, cancel the certifi-
cate from such date, not earlier than 30 days after the service of the
notice, as may be specified in the notice.
SCHEDULE 2
Machinery for Assessment, Charge and Payment of Tax under
Schedule C and, in Certain Cases, Schedule D
PART 1
Interpretation of Parts 2 to 4
1.Section 32shall apply for the interpretation ofParts 2to4of
this Schedule as it applies for the interpretation ofChapter 1ofPart
3of this Act, except that inPart 4of this Schedule ‘‘dividends’’ shall
include all such interest, annuities or payments as are, within the
meaning ofsection 60, dividends to whichChapter 2ofPart 4of this
Act applies.
PART 2
Public revenue dividends, etc., payable to the Bank of Ireland, or
entrusted for payment to the Bank of Ireland
2. The Bank of Ireland, as respects the dividends and the profits
attached to the dividends payable to the Bank out of the public rev-
enue of the State, or payable out of any public revenue and entrusted
to the Bank for payment and distribution, shall, when any payment
becomes due, deliver to the Commissioners appointed to assess and
charge the income tax on such dividends and the profits attached to
such dividends in books provided for the purpose true accounts of—
(a) the amounts of the dividends, and profits attached to the
dividends, payable to the Bank,
(b) all dividends entrusted to the Bank for payment to the per-
sons entitled to such dividends, and
(c) the amount of income tax chargeable on such dividends and
the profits attached to such dividends at the standard rate
in force at the time of payment without any other
deduction than is allowed by the Income Tax Acts.
1377
Sections 33, 61and
62.
[ITA67 Sch1 PtsI
and III to VI;
F(MP)A68 s3(3)
and Sch PtII, s3(4)
and Sch PtIII and
s3(5) and Sch PtIV;
FA74 s11 and Sch1
PtII] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.2
1378 3. The accounts referred to inparagraph 2shall distinguish the
separate account of each person.
4. The Commissioners shall assess the income tax chargeable on
the accounts delivered to the best of their judgment and belief, and
shall deliver the assessment books signed by them to the Revenue
Commissioners.
5. The Revenue Commissioners shall cause to be made out a cer-
tificate showing the total amount of income tax, the total amounts
of the dividends and profits attached to the dividends charged with
income tax, and the description of the persons or bodies of persons
to whom such dividends and profits are payable or who have the
distribution or are entrusted with the payment of such dividends.
6. The certificate shall be transmitted to the Commissioners whose
duty it is to make the assessment.
7. (1) In the case of dividends and profits attached to dividends
payable to the Bank of Ireland out of the public revenue of the State,
the Bank of Ireland shall set apart the income tax in respect of the
amount payable to the Bank.
(2) In the case of dividends and profits attached to dividends
entrusted to the Bank of Ireland for payment and distribution—
(a) the Bank of Ireland shall before making any payment retain
the amount of the income tax for the purposes of the
Income Tax Acts,
(b) the retaining of the amount shall be deemed to be a pay-
ment of the income tax by the persons entitled to the
dividends and shall be allowed by those persons on the
receipt of the residue of the dividends, and
(c) the Bank of Ireland shall be acquitted and discharged of a
sum equal to the amount retained as though that sum had
been actually paid.
8. Money set apart or retained underparagraph 7shall be paid
into the general account of the Revenue Commissioners at the Bank
of Ireland, and every such payment shall be accompanied by a certifi-
cate, under the hands of 2 or more of the Commissioners who made
the assessment, of the amount of the assessment under which the
payment is made.
9. Where the Bank of Ireland does all such things as are necessary
to enable the income tax to be assessed and paid in respect of British
Government Stocks and India Stocks inscribed in its books in Dub-
lin, the Bank shall receive as remuneration an allowance, to be calcu-
lated by reference to the amount of dividends paid in respect of such
Stocks from which income tax is deducted, and to be fixed by the
Minister for Finance.
10. Except where otherwise provided in any other enactments in
force at the commencement of this Act, no assessment, charge or
deduction of income tax under this Part of this Schedule shall be
made where any half-yearly payment in respect of any dividends
does not exceed £2.50, but such dividends shall be assessed and
charged under Case III of Schedule D.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.2 PART 3
Public revenue dividends payable by public offices and departments
11. Public revenue dividends payable by any public office or
Department of State shall be charged under Schedule C by the Rev-
enue Commissioners.
12. The Revenue Commissioners shall exercise the like powers
and duties as are possessed by Commissioners empowered to charge
dividends payable out of the public revenue in other cases.
13. When any payments of dividends referred to inparagraph 11
are made, the income tax on those payments shall be computed and
certified to the proper officer for payment, who shall retain the tax
and pay the tax into the general account of the Revenue Com-
missioners at the Bank of Ireland.
PART 4
Other public revenue dividends, dividends to which Chapter 2 of
Part 4 applies, proceeds of coupons and price paid on purchase of
coupons
14. (1) Every person, being—
(a) a person (other than the Bank of Ireland) entrusted with
the payment of any dividends payable to any persons in
the State out of any public revenue other than that of the
State,
(b) a person in the State entrusted with the payment of any
dividends to whichChapter 2ofPart 4applies,
(c) a banker or other person in the State who obtains payment
of any dividends in such circumstances that the dividends
are chargeable to income tax under Schedule C or, in the
case of dividends to whichChapter 2ofPart 4applies,
under Schedule D,
(d) a banker in the State who sells or otherwise realises coupons
in such manner that the proceeds of the sale or realisation
are chargeable to income tax under Schedule C or, in the
case of dividends to whichChapter 2ofPart 4applies,
under Schedule D, and
(e) a dealer in coupons in the State who purchases coupons in
such manner that the price paid on the purchase is
chargeable to income tax under Schedule C or, in the
case of dividends to whichChapter 2ofPart 4applies,
under Schedule D,
shall, within one month after being so required by notice published
in Iris Oifigiu´
il, deliver to the Revenue Commissioners an account
in writing giving such person’s name and residence and a description
of those dividends or proceeds or that price paid on purchase, and
shall also, on demand by the inspector authorised for that purpose
by the Revenue Commissioners, deliver to that inspector true and
perfect accounts of the amount of all such dividends, proceeds or
price paid on purchase.
(2) The accounts referred to insubparagraph (1)shall distinguish
the separate accounts of each of the persons entitled to receive such
1379

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.2
1380 dividends, proceeds or price paid on purchase, and state the name
and address of each such person, and give particulars of the amounts
payable and, in the case of amounts payable out of any public rev-
enue other than that of the State, of the public revenue out of which
each separate amount is payable.
15. Any person mentioned inclauses (a)to(e)ofparagraph 14(1)
is referred to in this Part as a ‘‘chargeable person’’.
16. The Revenue Commissioners shall—
(a) have all necessary powers in relation to the examining, aud-
iting, checking and clearing the books and accounts of
dividends, proceeds or price paid on purchase delivered
underparagraph 14,
(b) assess and charge the dividends, proceeds or price paid on
purchase at the rate of income tax in force at the time of
payment, but reduced by the amount of the exemptions
(if any) allowed by the Revenue Commissioners, and
(c) give notice of the amount so assessed and charged to the
chargeable person.
17. The chargeable person shall out of the moneys in that person’s
hands pay the income tax on the dividends, proceeds or price paid
on purchase on behalf of the persons entitled to the dividends, pro-
ceeds or price paid on purchase, and shall be acquitted in respect of
all such payments, and the Income Tax Acts shall apply as in the
case of dividends payable out of the public revenue of the State and
entrusted to the Bank of Ireland for payment and distribution.
18. The chargeable person shall pay the income tax into the gen-
eral account of the Revenue Commissioners at the Bank of Ireland,
and in default of payment the income tax shall be recovered from
the chargeable person in the like manner as other income tax
assessed and charged on that person may be recovered.
19. A chargeable person who does all such things as are necessary
to enable the income tax to be assessed and paid shall receive as
remuneration an allowance, to be calculated by reference to the
amount of the dividends, proceeds or price paid on purchase paid
from which tax has been deducted, and to be fixed by the Minister
for Finance at a rate not being less than £0.675 for every £1,000 of
that amount.
20. Notwithstanding anything to the contrary in the Income Tax
Acts, where the Bank of Ireland (in this paragraph referred to as
‘‘the Bank’’) is entrusted with the payment of any dividends which
are payable to any persons in the State out of any public revenue
other than that of the State, this Part shall apply to the Bank and,
where the Bank does all things required by this Part to be done by
a person entrusted with the payment of such dividends, remuneration
shall be payable to the Bank in accordance withparagraph 19.
21. Nothing in this Part shall impose on any banker the obligation
to disclose any particulars relating to the affairs of any person on
whose behalf that banker may be acting.
22. Where income tax in respect of the proceeds of the sale or
realisation of any coupon or in respect of the price paid on the pur-
chase of any coupon has been accounted for under this Part by any
banker or any dealer in coupons and the Revenue Commissioners

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.2 are satisfied that the dividends payable on the coupons in relation to
which such proceeds or such price arises have been subsequently
paid in such manner that income tax has been deducted from such
dividends under any of the provisions of this Schedule, the income
tax so deducted shall be repaid.
PART 5
Relief from obligation to pay tax on certain interest, dividends and
other annual payments in the case of persons entrusted with payment
23. When any interest, dividends or other annual payments pay-
able out of any public revenue other than that of the State, or in
respect of the stocks, funds, shares or securities of any body of per-
sons not resident in the State, are entrusted to any person in the
State for payment to any person in the State, the Revenue Com-
missioners shall have power to relieve the person so entrusted with
payment from the obligation to pay the income tax on such interest,
dividends or other annual payments imposed on such person by
section 17andChapter 1ofPart 3,orChapter 2ofPart 4and this
Schedule.
24. When granting the relief referred to inparagraph 23the Rev-
enue Commissioners shall have power to prescribe any conditions
which may appear to them to be necessary to ensure the assessment
and payment of any income tax assessable and payable in respect of
such interest, dividends or other annual payments under the Income
Tax Acts.
25. A letter signed by a Secretary or an Assistant Secretary of the
Revenue Commissioners stating that the Revenue Commissioners
have exercised all or any of the powers conferred by this Part on
them or the publication of a notice to that effect in Iris Oifigiu´
il shall
be sufficient evidence that they have done so.
26. When, under the powers conferred on the Revenue Com-
missioners by this Part, the person entrusted with the payment of the
interest, dividends or other annual payments is relieved from pay-
ment of the income tax on such interest, dividends or other annual
payments, that tax shall be assessable and chargeable under the
appropriate case of Schedule D on the person entitled to receive such
interest, dividends or other annual payments and shall be payable by
that person.
27. Where the person entrusted with the payment of the interest,
dividends or other annual payments complies with the conditions
prescribed by the Revenue Commissioners underparagraph 24, such
person shall be entitled to receive as remuneration an allowance, to
be calculated by reference to the amount of the dividends, interest
or other annual payments in respect of which such conditions have
been complied with, and to be fixed by the Minister for Finance at
a rate or rates not being in any case less than £0.675 for every £1,000
of that amount.
SCHEDULE 3
Reliefs in Respect of Income Tax Charged on Payments on
Retirement, Etc
PART 1
Interpretation and preliminary
1. (1) In this Schedule—
1381
Section 201.
[ITA67 Sch3; FA80
s10(2); FA90 s12;
FA93 s8(b)] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.3
1382 ‘‘the relevant capital sum in relation to an office or employment’’
means, subject tosubparagraph (2), the aggregate of—
(a) the amount of any lump sum (not chargeable to income tax)
received,
(b) the amount equal to the value at the relevant date of any
lump sum (not chargeable to income tax) receivable, and
(c) the amount equal to the value at the relevant date of any
lump sum (not chargeable to income tax) which, on the
exercise of an option or a right to commute, in whole or
in part, a pension in favour of a lump sum, may be
received in the future,
by the holder in respect of the office or employment in pursuance of
any scheme or fund described insection 778(1);
‘‘the standard capital superannuation benefit’’, in relation to an
office or employment, means a sum determined as follows:
(a) the average for one year of the holder’s emoluments of the
office or employment for the last 3 years of his or her
service before the relevant date (or for the whole period
of his or her service if less than 3 years) shall be
ascertained,
(b) one-fifteenth of the amount ascertained in accordance with
clause (a)shall be multiplied by the whole number of
complete years of the service of the holder in the office
or employment, and
(c) an amount equal to the relevant capital sum in relation to
the office or employment shall be deducted from the
product determined in accordance withclause (b).
(2) (a) The relevant capital sum in relation to an office or
employment shall include the amount mentioned in
clause (c)of the definition of ‘‘the relevant capital sum
in relation to an office or employment’’ whether or not
the option or right referred to in that clause is exercised.
(b) Where, under the conditions or terms of any scheme or
fund described insection 778(1), the holder of the office
or employment is entitled to surrender irrevocably the
option or right referred to inclause (c)of the definition
of ‘‘the relevant capital sum in relation to an office or
employment’’ and has done so at the relevant date, the
relevant capital sum in relation to an office or employ-
ment shall not include the amount mentioned in that
clause.
2. Any reference in this Schedule to a payment in respect of which
income tax is chargeable undersection 123is a reference to so much
of that payment as is chargeable to tax after deduction of the relief
applicable to that payment undersection 201(5).
3. Any reference in this Schedule to the amount of income tax to
which a person is or would be chargeable is a reference to the
amount of income tax to which the person is or would be chargeable
either by assessment or by deduction.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.3 4. Relief shall be allowed in accordance with this Schedule in
respect of income tax chargeable by virtue ofsection 123where a
claim is duly made in accordance withsection 201.
5. A claimant shall not be entitled to relief under this Schedule in
respect of any income the tax on which he or she is entitled to charge
against any other person, or to deduct, retain or satisfy out of any
payment which he or she is liable to make to any other person.
PART 2
Relief by reduction of sums chargeable
6. In computing the charge to tax in respect of a payment charge-
able to income tax undersection 123, a sum equal to the amount (if
any) by which the standard capital superannuation benefit for the
office or employment in respect of which the payment is made
exceeds the basic exemption shall be deducted from the payment.
7. Where income tax is chargeable undersection 123in respect of
2 or more payments to whichparagraph 6applies, being payments
made to or in respect of the same person in respect of the same office
or employment or in respect of different offices or employments held
under the same employer or under associated employers, then—
(a)paragraph 6shall apply as if those payments were a single
payment of an amount equal to their aggregate amount
and, where they are made in respect of different offices or
employments, as if the standard capital superannuation
benefit were an amount equal to the sum of the standard
capital superannuation benefits for those offices or
employments, and
(b) where the payments are treated as income of different years
of assessment, the relief to be granted underparagraph 6
in respect of a payment chargeable for any year of assess-
ment shall be the amount by which the relief computed
in accordance withsubparagraph (a)in respect of that
payment and any payments chargeable for previous years
of assessment exceeds the relief in respect of those pay-
ments chargeable for previous years of assessment,
and, where the standard capital superannuation benefit for an office
or employment in respect of which 2 or more of the payments are
made is not the same in relation to each of those payments, it shall
be treated for the purposes of this paragraph as equal to the higher
or highest of those benefits.
8. In computing the charge to tax in respect of a payment charge-
able to income tax undersection 123in the case of a claimant, if the
claimant has not previously made a claim undersection 201and the
relevant capital sum (if any) in relation to the office or employment
in respect of which the payment is made does not exceed £4,000,
subsection (5)ofsection 201andparagraph 6shall apply to that pay-
ment as if each reference in that subsection and in that paragraph to
the basic exemption were a reference to the basic exemption
increased by the amount by which £4,000 exceeds that relevant capi-
tal sum.
9. In computing the charge to tax in respect of a payment charge-
able to income tax undersection 123, being a payment made in
respect of an office or employment in which the service of the holder
includes foreign service, a sum which bears to the amount which
1383

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.3
Section 227.
[FA94 Sch; S.I. No.
148 of 1997] 1384 would be chargeable to income tax apart from this paragraph the
same proportion as the length of the foreign service bears to the
length of the service before the relevant date shall be deducted from
the payment (in addition to any deduction allowed underparagraphs
6to8of this Schedule).
PART 3
Relief by reduction of tax
10. In the case of any payment in respect of which income tax is
chargeable undersection 123, relief shall be allowed by means of
deduction from the tax chargeable by virtue of that section of an
amount equal to the amount determined by the formula—
A−(P×T
I)
where—
A is the amount of income tax which apart from this paragraph
would be chargeable in respect of the total income of the holder
or past holder of the office or employment for the year of assess-
ment of which the payment is treated as income after deducting
from that amount of tax the amount of tax which would be so
chargeable if the payment had not been made,
P is the amount of that payment after deducting any relief applicable
to that payment under the preceding provisions of this Schedule,
T is the aggregate of the amounts of income tax chargeable in
respect of the total income of the holder or past holder of the
office or employment for the 5 years of assessment preceding the
year of assessment of which the payment is treated as income
before taking account of any relief provided bysection 826, and
I is the aggregate of the taxable incomes of the holder or past holder
of the office or employment for the 5 years of assessment preced-
ing the year of assessment of which the payment is treated as
income.
11. Where income tax is chargeable undersection 123in respect
of 2 or more payments to or in respect of the same person in respect
of the same office or employment and is so chargeable for the same
year of assessment, those payments shall be treated for the purposes
ofparagraph 10as a single payment of an amount equal to their
aggregate amount.
12. Where income tax is chargeable undersection 123in respect
of 2 or more payments to or in respect of the same person in respect
of different offices or employments and is so chargeable for the same
year of assessment,paragraphs 10and11shall apply as if those pay-
ments were made in respect of the same office or employment.
SCHEDULE 4
Exemption of Specified Non-Commercial State Sponsored Bodies
from Certain Tax Provisions
1. Agency for Personal Service Overseas.
2. Beaumont Hospital Board.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.4 3. Blood Transfusion Service Board.
4. Board for Employment of the Blind.
5. An Bord Altranais.
6. An Bord Bia — The Irish Food Board.
7. Bord Fa´
ilte E´
ireann.
8. An Bord Glas.
9. An Bord Iascaigh Mhara.
10. Bord na Gaeilge.
11. Bord na Leabhar Gaeilge.
12. Bord na Radharcmhasto´
ir´
.
13. An Bord Pleana´
la.
14. Bord Scola´
ireachta´
Comalairte.
15. An Bord Tra´
chta´
la — The Irish Trade Board.
16. An Bord Uchta´
la.
17. Building Regulations Advisory Body.
18. The Central Fisheries Board.
19. CERT Limited.
20. The Chester Beatty Library.
21. An Chomhairle Eala´
on.
22. An Chomhairle Leabharlanna.
23. Coiste An Asgard.
24. Combat Poverty Agency.
25. Comhairle na Nimheanna.
26. Comhairle na n-Ospide´
al.
27. Cork Hospitals Board.
28. Criminal Injuries Compensation Tribunal.
29. Dental Council.
30. Drug Treatment Centre Board.
31. Dublin Dental Hospital Board.
32. Dublin Institute for Advanced Studies.
33. Eastern Regional Fisheries Board.
34. Economic and Social Research Institute.
35. Employment Equality Agency.
36. Environmental Protection Agency — An Ghn´
omhaireacht
um Chaomhnu´
Comhshaoil.
37. Eolas — The Irish Science and Technology Agency.
38. Federated Dublin Voluntary Hospitals.
39. Fire Services Council.
40. An Foras A´
iseanna Saothair.
41. Forbairt.
42. Forfa´
s.
43. The Foyle Fisheries Commission.
44. Garda S´
ocha´
na Appeal Board.
45. Garda S´
ocha´
na Complaints Board.
46. General Medical Services (Payments) Board.
47. Health Research Board — An Bord Taighde Sla´
inte.
48. Higher Education Authority.
49. Hospital Bodies Administrative Bureau.
50. Hospitals Trust Board.
51. The Independent Radio and Television Commission — An
Coimisiu´
n um Raidio agus Teilif´
s Neamhsplea´
ch.
52. The Industrial Development Agency (Ireland).
53. The Industrial Development Authority.
54. Institiu´
id Teangeola´
ochta E´
ireann.
55. Institute of Public Administration.
56. The Irish Film Board.
57. The Irish Medicines Board.
58. The Labour Relations Commission.
59. Law Reform Commission.
60. The Legal Aid Board.
61. Leopardstown Park Hospital Board.
62. Local Government Computer Services Board — An Bord
Seirbh´


omhaire Rialtais Aitiu´
il.
1385

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.4
Section 322.
[FA86 Sch4 PtsI
and II] 1386 63. Local Government Staff Negotiations Board — An Bord
Comhchaibidl´
Foirne Rialtais Aitiu´
il.
64. The Marine Institute.
65. Medical Bureau of Road Safety — An Lia-Bhiu´
ro´
um Sha´
b-
ha´
iltacht ar Bho´
ithre.
66. The Medical Council.
67. The National Authority for Occupational Safety and Health
—AntU´
dara´
sNa´
isiu´
nta um Sha´
bha´
ilteachta agus Sla´
inte
Ceirde.
68. National Cancer Registry.
69. The National Concert Hall Company Limited — An Ceola´
ras
Na´
isiu´
nta.
70. National Council for Educational Awards.
71. National Council for the Elderly.
72. The National Economic and Social Council.
73. The National Economic and Social Forum.
74. National Health Council.
75. National Heritage Council — Comhairle Na hOidhreacha
Na´
isiu´
nta.
76. National Rehabilitation Board.
77. The National Roads Authority — An tU´
dara´
sumBo´
ithre
Na´
isiu´
nta.
78. National Safety Council — Comhairle Sa´
bha´
iltacht
Na´
isiu´
nta.
79. National Social Services Board.
80. The Northern Regional Fisheries Board.
81. The North Western Regional Fisheries Board.
82. Office of the Data Protection Commissioner.
83. The Pensions Board.
84. Postgraduate Medical and Dental Board.
85. The Radiological Protection Institute of Ireland.
86. The Refugee Agency.
87. Rent Tribunal.
88. Royal Hospital Kilmainham Company.
89. Saint James’s Hospital Board.
90. Saint Luke’s and St Anne’s Hospital Board.
91. Salmon Research Agency of Ireland Incorporated.
92. Shannon Free Airport Development Company Limited.
93. The Shannon Regional Fisheries Board.
94. The Southern Regional Fisheries Board.
95. The South Western Regional Fisheries Board.
96. Tallaght Hospital Board.
97. Teagasc.
98. Temple Bar Renewal Limited.
99. U´
dara´
s na Gaeltachta.
SCHEDULE 5
Description of Custom House Docks Area
Interpretation
1. In this Schedule—
‘‘thoroughfare’’ includes any road, street, lane, place, quay, terrace,
row, square, hill, parade, diamond, court, bridge, channel and river;
a reference to a line drawn along any thoroughfare is a reference to
a line drawn along the centre of that thoroughfare;
a reference to a projection of any thoroughfare is a reference to a
projection of a line drawn along the centre of that thoroughfare;

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.5 a reference to the point where any thoroughfare or projection of any
thoroughfare intersects or joins any other thoroughfare or projection
of a thoroughfare is a reference to the point where a line drawn
along the centre of one thoroughfare or, in the case of a projection
of a thoroughfare, along the projection, would be intersected or
joined by a line drawn along the centre of the other thoroughfare or,
in the case of another projection of a thoroughfare, along the other
projection;
a reference to a point where any thoroughfare or projection of a
thoroughfare intersects or joins a boundary is a reference to the point
where a line drawn along the centre of such thoroughfare or, in the
case of a projection of a thoroughfare, along the projection would
intersect or join such boundary.
Description of Custom House Docks Area
2. That part of the county borough of Dublin bounded by a line
commencing at the point (in this description referred to as ‘‘the first-
mentioned point’’) where a line drawn along the westerly projection
of the northern boundary of Custom House Quay would be inter-
sected by a line drawn along Memorial Road, then continuing in a
northerly direction along Memorial Road and Amiens Street to the
point where it joins Sheriff Street Lower, then continuing, initially in
an easterly direction, along Sheriff Street Lower and Commons
Street to the point where it intersects the easterly projection of the
northern boundary of Custom House Quay, and then continuing in
a westerly direction along that projection and that boundary and the
westerly projection of that boundary to the first-mentioned point.
SCHEDULE 6
Description of Temple Bar Area
Interpretation
1. In this Schedule—
‘‘thoroughfare’’ includes any bridge, green, hill, river and street;
a reference to a line drawn along any thoroughfare is a reference to
a line drawn along the centre of that thoroughfare;
a reference to a projection of any thoroughfare is a reference to a
projection of a line drawn along the centre of that thoroughfare;
a reference to the point where any thoroughfare or projection of any
thoroughfare intersects or joins any other thoroughfare is a reference
to the point where a line drawn along the centre of one thoroughfare
or, in the case of a projection of a thoroughfare, along the projection,
would be intersected or joined by a line drawn along the centre of
the other thoroughfare.
Description of Temple Bar Area
2. That part of the county borough of Dublin bounded by a line
commencing at the point (in this description referred to as ‘‘the first-
mentioned point’’) where the River Liffey is intersected by O’Con-
nell Bridge, then continuing, initially in a southerly direction along
O’Connell Bridge, Westmoreland Street, College Green, Dame
Street, Cork Hill and Lord Edward Street to the point where it joins
1387
Section 330.
[FA91 Sch2] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.6
Section 339.
[FA97 Sch10] 1388 Fishamble Street, then continuing in a northerly direction along Fish-
amble Street and the northerly projection of that street to the point
where it intersects the River Liffey, then continuing in an easterly
direction along the River Liffey to the first-mentioned point.
SCHEDULE 7
Description of Certain Enterprise Areas
PART 1
Interpretation
In this Schedule
‘‘thoroughfare’’ includes any canal, lane, motorway, railway line and
road;
a reference to a line drawn along any thoroughfare is a reference to
a line drawn along the centre of that thoroughfare;
a reference to the point where any thoroughfare intersects, joins or
traverses any other thoroughfare is a reference to the point where a
line drawn along the centre of one thoroughfare would be inter-
sected, joined or traversed by a line drawn along the centre of the
other thoroughfare;
a reference to a point where any thoroughfare is intersected by the
projection of a boundary is a reference to the point where a line
drawn along the centre of such thoroughfare would be intersected
by the projection of such boundary.
PART 2
Description of Cherry Orchard/Gallanstown Enterprise Area
That part of the county borough of Dublin and the administrative
county of South Dublin bounded by a line commencing at the point
(in this description referred to as ‘‘the first-mentioned point’’) where
the Grand Canal is traversed by the M50 motorway, then continuing
in an easterly direction along the Grand Canal to the point where it is
traversed by the unnamed road to the east of the Dublin Corporation
Waterworks installation, then continuing in a north-westerly direc-
tion along that unnamed road for a distance of 250 metres, then
continuing in a straight undefined line in a north-easterly direction
to a point on the South Western Railway Line which is 950 metres
east of the point where that railway line is traversed by the M50
motorway, then continuing in a westerly direction along that railway
line to the point where it is traversed by the M50 motorway, then
continuing in a south-easterly direction along that motorway to the
first-mentioned point.
PART 3
Description of Finglas Enterprise Area
That part of the county borough of Dublin and the administrative
county of Fingal bounded by a line commencing at the point (in
this description referred to as ‘‘the first-mentioned point’’) where
Jamestown Road is intersected by the western projection of the
northern boundary of Poppintree Industrial Estate, then continuing
in a northerly direction along Jamestown Road to the point where it

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.7 joins St. Margaret’s Road, then continuing in an easterly direction
along St. Margaret’s Road for a distance of 110 metres, then continu-
ing in a straight undefined line due north to the point where it inter-
sects the M50 motorway, then continuing in an easterly direction
along the M50 motorway to the point where it is traversed by the
unnamed road immediately to the west of the playing fields on the
northern side of St. Margaret’s Road, then continuing in a southerly
direction along that unnamed road to the point where it joins St.
Margaret’s Road, then continuing in an easterly direction along St.
Margaret’s Road for a distance of 115 metres, then continuing in a
straight undefined line in a southerly direction to the point where
Balbutcher Lane is intersected by the eastern projection of the north-
ern boundary of Poppintree Industrial Estate, then continuing in a
westerly direction along the last-mentioned projection and boundary
and the western projection of the last-mentioned boundary to the
first-mentioned point.
PART 4
Description of Rosslare Harbour Enterprise Area
Ballygerry Area
That part of the administrative county of Wexford bounded by a line
commencing at the point (in this description referred to as ‘‘the first-
mentioned point’’), where the N25 road intersects the Ballygerry
Road at Kilrane then continuing initially in a northerly direction
along Ballygerry Road to the point where it next joins the N25 road,
then continuing initially in a southerly direction along the N25 road
to the first-mentioned point.
Harbour Area
That part of the town of Rosslare Harbour in the administrative
county of Wexford bounded by a line commencing at the point (in
this description referred to as ‘‘the first-mentioned point’’) where the
high-water mark joins the south-eastern end of the pier wall to the
north-west of the premises known locally as the Old Customs Shed,
then continuing in a north-westerly direction along that pier to the
point where it intersects the eastern end of the new revetment, then
continuing in a south-westerly direction along that revetment to the
point which is a distance of 150 metres from the western end of that
revetment, then continuing in a straight undefined line due south to
the point where it intersects the railway track, then continuing in a
north-easterly direction along the railway track to the point where it
is intersected by the southern projection of the western boundary of
the Old Customs Shed property, then continuing in a northerly direc-
tion along the last-mentioned projection and boundary to the point
where it joins the north-western boundary of the Old Customs Shed
property, then continuing in a north-easterly direction in a straight
undefined line to the first-mentioned point.
SCHEDULE 8
Description of Qualifying Resort Areas
PART 1
Description of qualifying resort areas of Clare
Kilkee
1. That part of the District Electoral Division of Kilkee comprised
in the Townlands of Kilkee Upper, Kilkee Lower and Dough.
1389
Section 351.
[FA95 Sch3] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.8
1390 2. That part of the District Electoral Division of Kilfearagh com-
prised in that part of the Townland of Ballyonan or Doonaghboy
bounded by a line commencing at the point (in this description
referred to as ‘‘the first-mentioned point’’) where the boundaries of
the Townlands of Ballyonan or Doonaghboy, Kilkee Lower and
Dough converge, then continuing in a south-westerly direction along
the boundary of the Townlands of Kilkee Lower and Ballyonan or
Doonaghboy for a distance of 568 yards to a point where it intersects
a field measuring 1.829 acres, then continuing along the north-east-
ern boundary of that field to a point where it intersects Local Road
(County Road 395), then continuing along the centre of that road in
a south-westerly direction for a distance of 20 yards to a point where
it intersects the northern projection of the north-eastern boundary
of a field measuring 3.517 acres, then continuing along the north-
eastern boundary of that field and of the adjoining field in a south-
easterly direction, then continuing in that direction to the centre of
the Kilkee/Loop Head Regional Road (R487), then continuing along
the centre of that road in a southerly direction for 160 yards to a
point where it intersects the westerly projection of the southern
boundary of a field measuring 1.282 acres, then continuing in an east-
erly direction along the southern boundary of that field and adjoining
fields to a point where it intersects with the eastern boundary of the
Townland of Ballyonan or Doonaghboy, and then continuing,
initially in a northerly direction, along that boundary to the first-
mentioned point.
3. That part of the District Electoral Division of Kilfearagh com-
prised in that part of the Townland of Corbally bounded by a line
commencing at the point (in this description referred to as ‘‘the first-
mentioned point’’) being the most westerly point of the boundary
between the Townlands of Corbally and Dough, then continuing
along that boundary in an easterly direction for approximately 510
yards to a point where it intersects the south-eastern corner of a field
measuring 2.020 acres, then continuing in a northerly direction along
the eastern boundary of that field and of adjoining fields for a dis-
tance of 394 yards, then continuing in a generally westerly direction
along the northern boundary of a field measuring 3.305 acres, then
continuing in that direction to the cliff face of George’s Head, and
then continuing, initially in a southerly direction, along the high
water mark to the first-mentioned point.
Lahinch
1. That part of the District Electoral Division of Ennistimon com-
prised in the Townlands of Lehinch and Dough.
2. That part of the District Electoral Division of Liscannor com-
prised in the Townland of Ballyellery.
3. That part of the District Electoral Division of Moy comprised
in the Townland of Crag.
PART 2
Description of qualifying resort areas of Cork
Clonakilty
1. The administrative area of the urban district of Clonakilty.
2. That part of the District Electoral Division of Ardfield com-
prised in the Townlands of Dunmore, Muckross, Lonagh, Drombeg
and Pallas.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.8 3. That part of the District Electoral Division of Clonakilty Rural
comprised in the Townlands of Clogheen, Inchydoney Island, Gal-
lanes, Tawnies Lower (Rural), Tawnies Upper (Rural), Desert
(Rural), Youghalls (Rural) and Miles (Rural).
Youghal
1. The administrative area of the urban district of Youghal.
2. That part of the District Electoral Division of Youghal Rural
comprised in the Townlands of Summerfield, Ballyvergan East, Bal-
lyclamasy, Knocknacally, Pipersbog, Glanaradotia, Park Mountain,
Muckridge Demense, Foxhole and Youghal Mudlands.
3. That part of the District Electoral Division of Clonpriest com-
prised in the Townlands of Clonard East and Redbarn.
PART 3
Description of qualifying resort areas of Donegal
Bundoran
1. The administrative area of the urban district of Bundoran.
2. That part of the District Electoral Division of Bundoran Rural
comprised in that part of the Townland of Magheracar which is situ-
ated west of the most westerly boundary of the administrative area
of the urban district of Bundoran.
3. That part of the District Electoral Division of Bundoran Rural
comprised in that part of the Townland of Finner bounded by a line
commencing at the point (in this description referred to as ‘‘the first-
mentioned point’’) where the eastern boundary of the administrative
area of the urban district of Bundoran, on the southern side of the
National Primary Road (N15), intersects with the centre of that
National Primary Road, then continuing in an easterly direction
along the centre of that road for a distance of 500 feet, then continu-
ing in a north-westerly direction along the rear boundary to the east
of Finner Avenue Housing Estate until the south-eastern corner of
Tullan Strand is reached, then continuing in a westerly direction to
the point where it joins the most north-easterly point of the boundary
of the administrative area of the urban district of Bundoran, then
continuing in a southerly direction along the eastern boundary of the
urban district to the point where it intersects the centre of the
National Primary Road (N15), and then continuing in an easterly
direction along the centre of that road to the first-mentioned
point.
PART 4
Description of qualifying resort areas of Galway
Salthill
1. That part of the County Borough of Galway bounded by a line
commencing at the point (in this description referred to as ‘‘the first-
mentioned point’’) where Threadneedle Road meets Salthill Road
Upper, then continuing in a northerly direction along the centre of
Threadneedle Road to its junction with the road from Seapoint
Housing Estate, then continuing in an easterly direction along the
1391

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.8
1392 southern edge of that estate road and in an easterly projection there-
from to its intersection with a road named Rockbarton West, then
continuing in an easterly direction along the centre of Revagh Road
to its junction with Rockbarton Road, then continuing in a southerly
direction along the centre of Rockbarton Road to its junction with
Salthill Road Upper and then continuing in a westerly direction
along Salthill Road Upper to the first-mentioned point.
2. That part of the County Borough of Galway bounded by a line
commencing at the point (in this description referred to as ‘‘the first-
mentioned point’’) where the Seapoint Promenade Road meets Sal-
thill Road Upper, then continuing in a north-easterly direction along
the centre of Salthill Road Upper to its junction with Salthill Road
Lower, then continuing in an easterly direction along the centre of
Grattan Road to its junction with Seapoint Promenade Road and
then continuing in a south-westerly direction along the centre of Sea-
point Promenade Road to the first-mentioned point.
3. That part of the County Borough of Galway bounded by a line
commencing at the point (in this description referred to as ‘‘the first-
mentioned point’’) where Dalysfort Road meets Salthill Road
Upper, then continuing in an easterly direction along the centre of
Salthill Road Upper to a point where it meets Monksfield, then con-
tinuing in a north-westerly direction along the centre of Monksfield
to the rear of Number 212 Salthill Road Upper, then continuing in
a westerly direction along the Commercial Zoning Boundary as set
out in the Galway County Borough Development Plan, 1991, to a
point at the rear of Western House where it adjoins Dalysfort Road
and then continuing in a southerly direction to the first-mentioned
point.
4. That part of the County Borough of Galway bounded by a line
commencing at the point (in this description referred to as ‘‘the first-
mentioned point’’) where Monksfield meets Salthill Road Upper,
then continuing in a north-easterly direction along the centre of Sal-
thill Road Upper to its junction with Salthill Road Lower, then con-
tinuing in a northerly direction along the centre of Salthill Road
Lower to its junction with Devon Park Road, then continuing in a
north-westerly direction along the centre of Devon Park Road to the
rear of property known as Number 108 Lower Salthill Road, then
continuing in a southerly direction along Devon Park along the rear
boundaries of Numbers 108, 110, 112, 114, 116, 118, 120, 122, 124,
126, 128, 130, 132, 134, 136, 138, 140, 142, 144, 146 and 148 Lower
Salthill Road to where it meets Lenaboy Park, then continuing along
the Commercial Zoning Boundary, as set out in the Galway County
Borough Development Plan, 1991, to the rear of Number 160 Upper
Salthill Road, then continuing along the rear boundaries of Numbers
160, 162, 164, 166, 168 and 170 Upper Salthill Road, then continuing
in a southerly direction to the side boundary of Number 178 Upper
Salthill Road, then continuing in a westerly direction along the
boundary of Number 178 Upper Salthill Road to its boundary with
Lenaboy Gardens, then continuing in a southerly direction along the
centre of Lenaboy Gardens to the north-western corner of the Sacre
Coeur Hotel, then continuing in a southerly direction along the Com-
mercial Zoning Boundary, as set out in the Galway Borough
Development Plan, 1991, to its junction with Monksfield and then
continuing in a south-easterly direction to the first-mentioned
point.
5. That part of the County Borough of Galway bounded by a line
commencing at the point (in this description referred to as ‘‘the first-
mentioned point’’) where Lower Salthill Road meets Grattan Road,
then continuing in an easterly direction along the centre of Grattan

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.8 Road to its junction with Salthill Promenade Road, then continuing
in a northerly direction along the boundary of the existing private
car-park to the rear boundary of that car-park, then continuing in a
westerly direction along the rear boundary of properties fronting
onto Grattan Road as far as Salthill Road Lower and then continuing
in a southerly direction along the centre of Salthill Road Lower to
the first-mentioned point.
PART 5
Description of qualifying resort areas of Kerry
Ballybunion
1. That part of the District Electoral Division of Killehenny com-
prised in the Townlands of Ballyeagh, Killehenny, Ballybunion,
Dromin and Doon West.
2. That part of the District Electoral Division of Killehenny com-
prised in that part of the Townland of Gortnaskeha bounded by a
line commencing at the point (in this description referred to as ‘‘the
first-mentioned point’’) where the boundaries of the Townlands of
Ballyeagh, Gortnaskeha and Ahimma converge, then continuing in
an easterly direction along the boundary between the Townlands of
Gortnaskeha and Ahimma to a point where it intersects with the
centre of the Tralee/Ballybunion Regional Road (R551), then con-
tinuing in a north-westerly direction along the centre of that road for
1,192 metres to a point where the road would intersect with a line
drawn along the westerly projection of the northern boundary of the
existing ESB transformer site, then continuing in a north-easterly
direction along the existing field boundary to the centre of the
Listowel/Ballybunion Regional Road (R553), then continuing in a
northerly direction to the centre of the Local Road (County Road
28), then continuing in a westerly direction along that road for 230
metres, then continuing in a northerly direction to a point where it
intersects with the boundary between the Townlands of Dromin and
Gortnaskeha, and then continuing in a southerly direction along the
western boundary of the Townland of Gortnaskeha to the first-men-
tioned point.
3. That part of the District Electoral Division of Killehenny com-
prised in that part of the Townland of Doon East bounded by a line
commencing at the point (in this description referred to as ‘‘the first-
mentioned point’’) where the Ballybunion/Beale Local Road
(County Road 4) intersects the Ballybunion/Asdee Regional Road
(R551), then continuing in a north-easterly direction along the centre
of that Regional road for 250 metres, then continuing in a southerly
direction along the rear boundary of the existing housing develop-
ment to the boundary of the Townlands of Doon East and Doon
West, then continuing in a westerly direction along that boundary to
the centre of the Regional Road (R551), and then continuing in a
northerly direction along the centre of that road to the first-men-
tioned point.
PART 6
Description of qualifying resort areas of Louth
Clogherhead
That part of the District Electoral Division of Clogher comprised in
the Townland of Clogher and that part of the Townland of Callys-
town bounded on the west by the Termonfeckin/Annagassan Local
Road (County Road 281) and on the north by the Dunleer/
Clogherhead Regional Road (R166).
1393

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.8
1394 PART 7
Description of qualifying resort areas of Mayo
Achill
1. The District Electoral Divisions of Slievemore, Dooega, Achill
and Corraun Achill.
2. That part of the District Electoral Division of Newport West
comprised in the Townland of Mallanranny.
Westport
1. That part of the District Electoral Division of Westport Urban
comprised in the Townlands of Ardmore, Cloonmonad, Cahernam-
art, Carrownalurgan, Knockranny, Westport Demesne (Urban
District), Deerpark East, Carrowbeg and those parts of the Town-
lands of Carrowbaun and Killaghoor contained within the adminis-
trative area of the urban district of Westport.
2. That part of the District Electoral Division of Westport Rural
comprised in Roman Island and the Townland of Rossbeg.
3. That part of the District Electoral Division of Kilmeena com-
prised in that part of the Townland of Westport Demesne (Rural
District) bounded by a line commencing at the point (in this descrip-
tion referred to as ‘‘the first-mentioned point’’) forming the most
north-westerly point of the Townland of Westport Demesne (Urban
District), then continuing in a westerly direction for 100 yards, then
continuing in a northerly direction for 320 yards, then continuing in
a south-easterly direction for 630 yards following the field boundary
south of Kennedy’s Wood as far as the administrative boundary of
the urban district of Westport and then continuing along that bound-
ary initially in a south-westerly direction to the first-mentioned
point.
PART 8
Description of qualifying resort areas of Meath
Bettystown, Laytown and Mosney
1. That part of the District Electoral Division of Julianstown com-
prised in that part of the Townland of Mornington bounded on the
north by a line commencing at the high water mark and continuing
in a westerly direction along the northern boundary of
Laytown/Bettystown Golf Links to a point where it intersects with
the boundary of the Townland of Donacarney Great; and those parts
of the Townlands of Betaghstown, Sevitsland, Ministown and Ninch
which are situated to the east of the Dublin/Belfast railway line.
2. That part of the District Electoral Division of Julianstown com-
prised in the Townland of Mosney and that part of the Townland of
Briarleas situated to the east of Local Road (County Road 438).
PART 9
Description of qualifying resort areas of Sligo
Enniscrone
1. That part of the District Electoral Division of Kilglass com-
prised in the Townlands of Carrowhubbock North, Carrowhubbock
South, Frankford, Kinard and Trotts.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.8 2. That part of the District Electoral Division of Castleconnor
West comprised in the Townlands of Bartragh, Carrowcardin, Muck-
duff and Scurmore.
PART 10
Description of qualifying resort areas of Waterford
Tramore
1. That part of the District Electoral Division of Islandikane com-
prised in the Townlands of Westtown, Newtown and Cool-
nagoppoge.
2. That part of the District Electoral Division of Tramore com-
prised in the Townlands of Ballycarnane, Monloum, Tramore East,
Tramore West, Crobally Upper, Crobally Lower, Tramore Intake
and including the land bounded on the west by the Townlands of
Tramore West, Crobally Upper and Tramore Intake (part b), on the
north by the Townlands of Ballinattin and Tramore Intake (part a),
on the east by a line running in a south-easterly direction from Tra-
more Intake (part a) along the centre of the embankment to the
Townland of Tramore Burrow and continuing in that direction as far
as the high water mark, and on the south by the high water mark.
PART 11
Description of qualifying resort areas of Wexford
Courtown
1. That part of the District Electoral Division of Courtown com-
prised in the Townlands of Courtown and Ballinatray Lower.
2. That part of the District Electoral Division of Ardamine com-
prised in the Townlands of Ballinatray Upper, Seamount, Middle-
town, Parknacross and Glen (Richards).
PART 12
Description of qualifying resort areas of Wicklow
Arklow
1. The administrative area of the urban district of Arklow.
2. That part of the District Electoral Division of Arklow Rural
comprised in the Townlands of Clogga and Askintinny.
3. That part of the District Electoral Division of Kilbride com-
prised in the Townlands of Seabank and Johnstown South.
SCHEDULE 9
Change in Ownership of Company: Disallowance of Trading
Losses
Change in ownership of company
1. For the purposes ofsections 401and679(4), there shall be a
change in the ownership of a company if—
1395
Sections 401 and
679(4).
[FA73 Sch5 PtI pars
1 to 7 and 9; FA97
s146(1) and Sch 9
PtI par5(3)] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.9
1396 (a) a single person acquires more than 50 per cent of the ordi-
nary share capital of a company,
(b) 2 or more persons each acquire a holding of 5 per cent or
more of the ordinary share capital of the company and
those holdings together amount to more than 50 per cent
of the ordinary share capital of the company, or
(c) 2 or more persons each acquire a holding of the ordinary
share capital of the company, and the holdings together
amount to more than 50 per cent of the ordinary share
capital of the company, but disregarding a holding of less
than 5 per cent unless it is an addition to an existing hold-
ing and the 2 holdings together amount to 5 per cent or
more of the ordinary share capital of the company.
2. In applyingparagraph 1—
(a) the circumstances at any 2 points in time with not more than
3 years between them may be compared, and a holder at
the later time may be regarded as having acquired what-
ever such holder did not hold at the earlier time, irrespec-
tive of what such holder has acquired or disposed of
between such 2 points in time;
(b) so as to allow for any issue of shares or other reorganisation
of capital, the comparison referred to insubparagraph (a)
may be made in terms of percentage holdings of the total
ordinary share capital at the respective times, so that a
person whose percentage holding is greater at the later
time may be regarded as having acquired a percentage
holding equal to the increase;
(c) in deciding for the purposes ofsubparagraphs (b)and(c)of
paragraph 1whether any person has acquired a holding
of at least 5 per cent or a holding which makes at least 5
per cent when added to an existing holding, acquisitions
by, and holdings of, persons who are connected with each
other shall be aggregated as if they were acquisitions by,
and holdings of, one and the same person;
(d) any acquisition of shares under the will or on the intestacy
of a deceased person and any gift of shares, if it is shown
that the gift is unsolicited and made without regard to
section 401or679(4), shall be disregarded.
3. Where persons, whether members of the company or not, pos-
sess extraordinary rights or powers under the articles of association
or under any other document regulating the company and as a con-
sequence ownership of ordinary share capital may not be an appro-
priate test of whether there has been a major change in the persons
for whose benefit the losses or capital allowances may ultimately
enure, then, in considering whether there has been a change in
ownership of the company for the purposes ofsection 401or679(4),
holdings of all kinds of share capital, including preference shares, or
of any particular category of share capital, or voting power or any
other special kind of power, may be taken into account instead of
ordinary share capital.
4. Wheresection 401or679(4)has operated to restrict relief by
reference to a change in ownership taking place at any time, no trans-
action or circumstance before that time shall be taken into account
in determining whether there is any subsequent change in ownership.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.9 Groups of companies
5. (1) For the purposes ofsections 401and679(4), a change in the
ownership of a company shall be disregarded if—
(a) immediately before the change the company is a 75 per cent
subsidiary of another company, and
(b) that other company continues after the change, despite a
change in the direct ownership of the first-mentioned
company, to own that first-mentioned company as a 75
per cent subsidiary.
(2) If there is a change in the ownership of a company which has
a 75 per cent subsidiary, whether owned directly or indirectly,section
401or679(4), as the case may be, shall apply as if there had also
been a change in the ownership of that subsidiary unless the change
in ownership of the first-mentioned company is to be disregarded
undersubparagraph (1).
Provisions as to ownership
6. For the purposes ofsections 401and679(4)and this Schedule—
(a) references to ownership shall be construed as references to
beneficial ownership, and references to acquisition shall
be construed accordingly,
(b) a company shall be deemed to be a 75 per cent subsidiary
of another company if and so long as not less than 75 per
cent of its ordinary share capital is owned by that other
company, whether directly or through another company
or other companies, or partly directly and partly through
another company or other companies,
(c) the amount of ordinary share capital of one company owned
by a second company through another company or other
companies, or partly directly and partly through another
company or other companies, shall be determined in
accordance withsubsections (5)to(10)ofsection9, and
(d) ‘‘share’’ includes ‘‘stock’’.
Time of change in ownership
7. (1) Where any acquisition of ordinary share capital or other
property or rights taken into account in determining that there has
been a change in ownership of a company—
(a) was made in pursuance of a contract of sale or option or
other contract, or
(b) was made by a person holding such a contract,
the time when the change in ownership took place shall be deter-
mined as if the acquisition had been made when the contract was
made with the holder or when the benefit of the contract was
assigned to the holder so that, in the case of a person exercising an
option to purchase shares, such person shall be regarded as having
purchased the shares when such person acquired the option.
(2)Subparagraph (1)shall not apply where the contract was made
before the 16th day of May, 1973.
1397

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.9
Section 507.
[FA84 Sch2; FA87
s12(2); FA91
s15(2)] 1398 Information
8. Any person in whose name any shares or securities of a com-
pany are registered shall, if required by notice in writing by an
inspector given for the purposes ofsection 401or679(4), state
whether or not that person is the beneficial owner of those shares or
securities or any of them and, if that person is not the beneficial
owner of those shares or securities or any of them, that person shall
furnish the name and address of the person or persons on whose
behalf those shares or securities are registered in that person’s name.
SCHEDULE 10
Relief for Investment in Corporate Trades: Subsidiaries
Finance for trade of subsidiary
1. The shares issued by the qualifying company may, instead of or
as well as being issued for the purpose mentioned insection
489(1)(b), be issued for the purpose of raising money for a qualifying
trade being carried on by a subsidiary or which such a subsidiary
intends to carry on and, where shares are so issued,paragraph (b)of
the definition of ‘‘relevant period’’ insection 488(1)andsubsections
(1)(c),(7),(8)and(11)ofsection 489shall apply as if references to
the company were or, as the case may be, included references to the
subsidiary.
Individuals qualifying for relief
2. (1) Insubsections (2),(4)and(6)ofsection 493, references to a
company (except in each subsection the first such reference) include
references to a company which is during the relevant period a sub-
sidiary of that company, whether it becomes a subsidiary before, dur-
ing or after the year of assessment in respect of which the individual
concerned claims relief and whether or not it is such a subsidiary
while he or she is a partner, director or employee mentioned insub-
section (2)ofsection 493or while he or she has or is entitled to
acquire such capital or voting power or rights as are mentioned in
subsections (4)and(6)of that section.
(2) Without prejudice tosection 493as it applies in accordance
withsubparagraph (1), an individual shall be treated as connected
with a company if—
(a) he or she has at any time in the relevant period had control
(within the meaning ofsection 11) of another company
which has since that time and before the end of the rel-
evant period become a subsidiary of the company, or
(b) he or she directly or indirectly possesses or is entitled to
acquire any loan capital of a subsidiary of that company.
(3)Subsections (5)and(9)ofsection 493shall apply for the pur-
poses of this paragraph.
Value received
3. (1) Insections 499(9)and501(5), references to the receipt of
value from the company shall include references to the receipt of
value from any company which during the relevant period is a sub-
sidiary of the company, whether it becomes a subsidiary before or

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.10 after the individual concerned receives any value from it, and refer-
ences to the company in the other provisions ofsection 499and in
section 501(8)shall be construed accordingly.
(2) Insection 501(1), references to the company (except the first
such reference) shall include references to a company which during
the relevant period is a subsidiary of the company, whether it
becomes a subsidiary before or after the repayment, redemption,
repurchase or payment referred to in that subsection.
Information
4.Subsections (4)and(5)ofsection 505shall apply in relation to
any arrangements mentioned insection 507(2)(c)as they apply in
relation to any arrangement mentioned insection 502.
SCHEDULE 11
Profit Sharing Schemes
PART 1
Interpretation
1. In this Schedule, ‘‘control’’ shall be construed in accordance
withsection 432.
2. For the purposes of this Schedule, a company shall be a member
of a consortium owning another company if it is one of not more
than 5 companies which between them beneficially own not less than
75 per cent of the other company’s ordinary share capital and each
of which beneficially owns not less than 5 per cent of that capital.
PART 2
Approval of schemes
3. (1) On the application of a body corporate (in this Schedule
referred to as ‘‘the company concerned’’) which has established a
profit sharing scheme which complies withsubparagraphs (3)and
(4), the Revenue Commissioners shall, subject tosection 511,
approve of the scheme—
(a) if they are satisfied in accordance withparagraph 4, and
(b) unless it appears to them that there are features of the
scheme which are neither essential nor reasonably inci-
dental to the purpose of providing for employees and
directors benefits in the nature of interests in shares.
(2) Where the company concerned has control of another com-
pany or companies, the scheme may be expressed to extend to all or
any of the companies of which it has control, and in this Schedule a
scheme which is expressed so to extend is referred to as a ‘‘group
scheme’’ and, in relation to a group scheme, ‘‘participating company’’
means the company concerned or a company of which for the time
being the company concerned has control and to which for the time
being the scheme is expressed to extend.
(3) The scheme shall provide for the establishment of a body of
persons resident in the State (in this Schedule referred to as ‘‘the
trustees’’)—
1399
Section 510.
[FA82 Sch3; FA90
s136; FA95 s16;
FA97 s50(c)] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.11
1400 (a) who, out of moneys paid to them by the company concerned
or, in the case of a group scheme, by a participating com-
pany, are required by the scheme to acquire shares in
respect of which the conditions inPart 3of this Schedule
are fulfilled,
(b) who are under a duty to appropriate shares acquired by
them to individuals who participate in the scheme, not
being individuals ineligible by virtue ofPart 4of this
Schedule, and
(c) whose functions with respect to shares held by them are
regulated by a trust which is constituted under the law
of the State and the terms of which are embodied in an
instrument which complies withPart 5of this Schedule.
(4) The scheme shall provide that the total of the initial market
values of the shares appropriated to any one participant in a year of
assessment will not exceed £10,000.
(5) An application undersubparagraph (1)shall be made in writ-
ing and shall contain such particulars and be supported by such evi-
dence as the Revenue Commissioners may require.
4. (1) The Revenue Commissioners shall be satisfied that at any
time every person who—
(a) (i) as respects a profit sharing scheme approved before the
10th day of May, 1997, is then a full-time employee
or director of the company concerned or, in the case
of a group scheme, of a participating company, or
(ii) as respects a profit sharing scheme approved on or after
the 10th day of May, 1997, is then an employee or
full-time director of the company concerned or, in
the case of a group scheme, of a participating
company,
(b) has been such an employee or director at all times during a
qualifying period, not exceeding 5 years, ending at that
time, and
(c) is chargeable to income tax in respect of his or her office or
employment under Schedule E,
will then be eligible, subject toPart 4of this Schedule, to participate
in the scheme on similar terms.
(2) For the purposes ofsubparagraph (1), the fact that the number
of shares to be appropriated to the participants in a scheme varies
by reference to the levels of their remuneration, the length of their
service or similar factors shall not be regarded as meaning that the
participants are not eligible to participate in the scheme on similar
terms.
5. (1) Where at any time after the Revenue Commissioners have
approved of a scheme—
(a) a participant is in breach of any of his or her obligations
underparagraphs (a),(c)and(d)ofsection 511(4),
(b) there is, with respect to the operation of the scheme, any
contravention of any provision ofChapter 1ofPart 17,

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.11 the scheme itself or the terms of the trust referred to in
paragraph 3(3)(c),
(c) any shares of a class of which shares have been appropriated
to participants receive different treatment in any respect
from the other shares of that class, being in particular
different treatment in respect of—
(i) the dividend payable,
(ii) repayment,
(iii) the restrictions attaching to the shares, or
(iv) any offer of substituted or additional shares, securities
or rights of any description in respect of the shares,
or
(d) the Revenue Commissioners cease to be satisfied in accord-
ance withparagraph 4,
then, the Revenue Commissioners may, subject tosubparagraph (3),
withdraw the approval with effect from that time or from such later
time as they may specify.
(2) Where at any time after the Revenue Commissioners have
approved of a scheme an alteration is made in the scheme or the
terms of the trust referred to inparagraph 3(3)(c), the approval shall
not have effect after the date of the alteration unless the Revenue
Commissioners have approved of the alteration.
(3) It shall not be a ground for withdrawal of approval of a scheme
that shares which have been newly issued receive, in respect of divid-
ends payable with respect to a period beginning before the date on
which the shares were issued, treatment less favourable than that
accorded to shares issued before that date.
6. (1) Where the company concerned is aggrieved by—
(a) the failure of the Revenue Commissioners to approve of a
scheme,
(b) the failure of the Revenue Commissioners to approve of an
alteration as mentioned inparagraph 5(2),or
(c) the withdrawal of approval,
the company may, by notice in writing given to the Revenue Com-
missioners within 30 days from the date on which it is notified of
their decision, make an application to have its claim for relief heard
and determined by the Appeal Commissioners.
(2) Where an application is made undersubparagraph (1), the
Appeal Commissioners shall hear and determine the claim in the like
manner as an appeal made to them against an assessment, and the
provisions of the Income Tax Acts relating to such an appeal
(including the provisions relating to the rehearing of an appeal and
to the statement of a case for the opinion of the High Court on a
point of law) shall apply accordingly with any necessary modi-
fications.
1401

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.11
1402 7. The Revenue Commissioners may nominate any of their
officers, including an inspector, to perform any acts and discharge
any functions authorised by this Schedule to be performed or dis-
charged by them.
PART 3
Conditions as to the shares
8. The shares shall form part of the ordinary share capital of—
(a) the company concerned,
(b) a company which has control of the company concerned, or
(c) a company which either is or has control of a company
which—
(i) is a member of a consortium owning either the com-
pany concerned or a company having control of that
company, and
(ii) beneficially owns not less than 15 per cent of the ordi-
nary share capital of the company so owned.
9. The shares shall be—
(a) shares of a class quoted on a recognised stock exchange,
(b) shares in a company not under the control of another com-
pany, or
(c) shares in a company under the control of a company (other
than a company which is, or if resident in the State would
be, a close company within the meaning ofsection 430)
whose shares are quoted on a recognised stock exchange.
10. (1) The shares shall be—
(a) fully paid up,
(b) not redeemable, and
(c) not subject to any restrictions other than restrictions which
attach to all shares of the same class or, as respects a
profit sharing scheme approved on or after the 10th day
of May, 1997, a restriction authorised bysubparagraph
(2).
(2) Subject tosubparagraphs (3)and(4), the shares may be subject
to a restriction imposed by the company’s articles of association—
(a) requiring all shares held by directors or employees of the
company or of any other company of which it has control
to be disposed of on ceasing to be so held, and
(b) requiring all shares acquired, in pursuance of rights or
interests obtained by such directors or employees, by per-
sons who are not, or have ceased to be, such directors or
employees to be disposed of when they are acquired.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.11 (3) A restriction is not authorised bysubparagraph (2)unless—
(a) any disposal required by the restriction will be by means of
sale for a consideration in money on terms specified in
the articles of association, and
(b) the articles also contain general provisions by virtue of which
any person disposing of shares of the same class (whether
or not held or acquired as mentioned insubparagraph
(2)) may be required to sell them on terms which are the
same as those mentioned inparagraph (a).
(4) Nothing insubparagraph (2)authorises a restriction which
would require a person, before the release date, to dispose of his or
her beneficial interest in shares the ownership of which has not been
transferred to him or her.
11. Except where the shares are in a company whose ordinary
share capital, at the time of the acquisition of the shares by the trus-
tees, consists of shares of one class only, the majority of the issued
shares of the same class shall be held by persons other than—
(a) persons who acquired their shares—
(i) in pursuance of a right conferred on them or an
opportunity afforded to them as a director or
employee of the company concerned or any other
company, and
(ii) not in pursuance of an offer to the public,
(b) trustees holding shares on behalf of persons who acquired
their beneficial interests in the shares in pursuance of a
right or opportunity mentioned insubparagraph (a), and
(c) in a case where the shares are withinparagraph 9(c)and are
not withinparagraph 9(a), companies which have control
of the company whose shares are in question or of which
that company is an associated company within the mean-
ing ofsection 432.
PART 4
Individuals ineligible to participate
12. An individual shall not be eligible to have shares appropriated
to him or her under the scheme at any time unless he or she is at that
time or was within the preceding 18 months a director or employee of
the company concerned or, if the scheme is a group scheme, of a
participating company.
13. An individual shall not be eligible to have shares appropriated
to him or her under the scheme at any time in a year of assessment
if in that year of assessment shares have been appropriated to him
or her under another approved scheme established by the company
concerned or by—
(a) a company which controls or is controlled by the company
concerned or which is controlled by a company which
also controls the company concerned, or
1403

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.11
1404 (b) a company which is a member of a consortium owning the
company concerned or which is owned in part by the
company concerned as a member of a consortium.
14. (1) An individual shall not be eligible to have shares appropri-
ated to him or her under the scheme at any time if at that time he
or she has, or at any time within the preceding 12 months had, a
material interest in a close company which is—
(a) the company whose shares are to be appropriated, or
(b) a company which has control of that company or is a mem-
ber of a consortium which owns that company.
(2)Subparagraph (1)shall apply in relation to a company which
would be a close company but forsection 430(1)(a)or431.
(3) (a) In this paragraph, ‘‘close company’’ has the meaning
assigned to it bysection 430.
(b) For the purpose of this paragraph—
(i)subsection (3)ofsection 433shall apply—
(I) in a case where the scheme in question is a group
scheme, with the substitution of a reference to
all participating companies for the first refer-
ence to the company inparagraph (c)(ii)of that
subsection, and
(II) with the substitution of a reference to 15 per cent
for the reference in that paragraph to 5 per cent,
and
(ii)section 437(2)shall apply, with the substitution of a
reference to 15 per cent for the reference in that
section to 5 per cent, for the purpose of determining
whether a person has or had a material interest in a
company.
PART 5
Provisions as to the trust instrument
15. The trust instrument shall provide that, as soon as practicable
after any shares have been appropriated to a participant, the trustees
will give him or her notice in writing of the appropriation—
(a) specifying the number and description of those shares, and
(b) stating their initial market value.
16. (1) The trust instrument shall contain a provision prohibiting
the trustees from disposing of any shares, except as mentioned in
paragraphs (a),(b)or(c)ofsection 511(6), during the period of
retention (whether by transfer to the participant or otherwise).
(2) The trust instrument shall contain a provision prohibiting the
trustees from disposing of any shares after the end of the period of
retention and before the release date except—

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.11 (a) pursuant to a direction given by or on behalf of the partici-
pant or any person in whom the beneficial interest in the
participant’s shares is for the time being vested, and
(b) by a transaction which would not involve a breach of the
participant’s obligation underparagraph (c)or(d)of
section 511(4).
17. The trust instrument shall contain a provision requiring the
trustees—
(a) subject to any direction referred to insection 513(3), to pay
over to the participant any money or money’s worth
received by them in respect of, or by reference to, any of
the participant’s shares, other than money consisting of
a sum referred to insection 511(4)(c)or money’s worth
consisting of new shares within the meaning ofsection
514, and
(b) to deal only pursuant to a direction given by or on behalf
of the participant (or any person referred to inparagraph
16(2)(a)) with any right conferred in respect of any of the
participant’s shares to be allotted other shares, securities
or rights of any description.
18. The trust instrument shall impose an obligation on the
trustees—
(a) to maintain such records as may be necessary to enable the
trustees to carry out their obligations underChapter 1 of
Part 17, and
(b) where the participant becomes liable to income tax under
Schedule E by reason of the occurrence of any event, to
inform the participant of any facts relevant to determin-
ing that liability.
SCHEDULE 12
Employee Share Ownership Trusts
Interpretation
1.(1) For the purposes of this Schedule—
‘‘ordinary share capital’’ has the same meaning as insection 2;
‘‘securities’’ means shares (including stock) and debentures.
(2) For the purposes of this Schedule, the question whether one
company is controlled by another shall be construed in accordance
withsection 432.
(3) For the purposes of this Schedule, a person shall be regarded
as an employee or a director of a company within the founding com-
pany’s group at a particular time if, at the time or within 18 months
before the time, that person is or was an employee or director of—
(a) the founding company, being a company resident in the
State,
1405
Section 519.
[FA97 Sch 3].

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.12
1406 (b) a company resident in the State and controlled by the
founding company, or
(c) a company, being the founding company or a company con-
trolled by the founding company, which carries on a trade
in the State through a branch or agency in which that
person is employed.
(4) (a) In this subparagraph—
‘‘associate’’ has the meaning assigned to it bysection 433;
‘‘control’’ shall be construed in accordance withsection 432.
(b) For the purposes of this Schedule, a person shall be treated
as having a material interest in a company if the person,
either on his or her own or with any one or more of his
or her associates, or if any associate of his or her with or
without any such other associates, is the beneficial owner
of, or able directly or through the medium of other com-
panies or by any other indirect means to control, more
than 5 per cent of the ordinary share capital of the
company.
(5) For the purposes of this Schedule, a trust shall be established
when the deed under which it is established is executed.
Approval of Qualifying Trusts
2. On the application of a body corporate (in this Schedule
referred to as ‘‘the founding company’’) which has established an
employee share ownership trust, the Revenue Commissioners shall
approve of the trust as a qualifying employee share ownership trust
if they are satisfied that the conditions inparagraphs 6to18are met
in relation to the trust.
3. (1) Where at any time after the Revenue Commissioners have
approved of a trust—
(a) there is with respect to the operation of the trust any contra-
vention of the conditions inparagraphs 6to18,or
(b) any shares of a class of which shares have been acquired by
the trustees receive different treatment in any respect
from the other shares of that class, in particular, different
treatment in respect of—
(i) the dividend payable,
(ii) repayment,
(iii) the restrictions attaching to the shares, or
(iv) any offer of substituted or additional shares, securities
or rights of any description in respect of the shares,
the Revenue Commissioners may, subject tosubparagraph (3), with-
draw the approval with effect from that time or from such later time
as they may specify.
(2) Where at any time after the Revenue Commissioners have
approved of a trust an alteration is made to the terms of the trust,

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.12 the approval shall not have effect after the date of the alteration
unless the Revenue Commissioners have approved of the alteration.
(3) It shall not be a ground for withdrawal of approval of a trust
that shares which have been newly issued receive, in respect of divid-
ends payable with respect to a period beginning before the date on
which the shares were issued, treatment which is less favourable than
that accorded to shares issued before that date.
(4) The Revenue Commissioners may by notice in writing require
any person to furnish to them, within such time as they may direct
which is not less than 30 days, such information as they think neces-
sary to enable them to either or both—
(a) determine whether to approve of an employee share owner-
ship trust or withdraw an approval already given, and
(b) determine the liability to tax of any beneficiary under an
approved employee share ownership trust.
4. (1) Where the founding company is aggrieved by—
(a) the failure of the Revenue Commissioners to approve of an
employee share ownership trust,
(b) the failure of the Revenue Commissioners to approve of an
alteration as mentioned inparagraph 3(2),or
(c) the withdrawal of approval,
the company may, by notice in writing given to the Revenue Com-
missioners within 30 days from the date on which it is notified of
their decision, make an application to have its claim for relief heard
and determined by the Appeal Commissioners.
(2) Where an application is made undersubparagraph (1), the
Appeal Commissioners shall hear and determine the claim in the like
manner as an appeal made to them against an assessment and the
provisions of the Income Tax Acts relating to such an appeal
(including the provisions relating to the rehearing of an appeal and
to the statement of a case for the opinion of the High Court on a
point of law) shall apply accordingly with any necessary modi-
fications.
5. The Revenue Commissioners may nominate any of their
officers, including an inspector, to perform any acts and discharge
any functions authorised by this Schedule to be performed or dis-
charged by them.
General
6. (1) The trust shall be established under a deed (in this Schedule
and insection 519referred to as ‘‘the trust deed’’).
(2) The trust shall be established by the founding company which
at the time the trust is established is not controlled by another
company.
Trustees
7. The trust deed shall provide for the establishment of a body of
trustees complying withparagraph 8, 9or10.
1407

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.12
1408 8. (1) The trust deed shall—
(a) appoint the initial trustees;
(b) contain rules for the retirement and removal of trustees;
(c) contain rules for the appointment of replacement and
additional trustees.
(2) The trust deed shall provide that at any time while the trust
subsists (in this subparagraph referred to as ‘‘the relevant time’’)—
(a) the number of trustees shall not be less than 3;
(b) all the trustees shall be resident in the State;
(c) the trustees shall include one person who is a trust corpor-
ation, a solicitor, or a member of such other professional
body as the Revenue Commissioners may from time to
time allow for the purposes of this paragraph;
(d) the majority of the trustees shall be persons who are not
and have never been directors of any company within the
founding company’s group at the relevant time;
(e) the majority of the trustees shall be representatives of the
employees of the companies within the founding com-
pany’s group at the relevant time, and who do not have
and have never had a material interest in any such
company;
(f) the trustees to whomsubparagraph (e)relates shall, before
being appointed as trustees, have been selected by a
majority of the employees of the companies within the
founding company’s group at the time of the selection.
9. (1) The trust deed shall—
(a) appoint the initial trustees;
(b) contain rules for the retirement and removal of trustees;
(c) contain rules for the appointment of replacement and
additional trustees.
(2) The trust deed shall be so framed that at any time while the
trust subsists the conditions insubparagraph (3)are fulfilled as
regards the persons who are then trustees, and in that subparagraph
‘‘the relevant time’’ means that time.
(3) The conditions referred to insubparagraph (2)are that—
(a) the number of trustees is not less than 3;
(b) all the trustees are resident in the State;
(c) the trustees include at least one person who is a professional
trustee and at least 2 persons who are non-professional
trustees;
(d) at least half of the non-professional trustees were, before
being appointed as trustees, selected in accordance with
subparagraph (6)or(7);

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.12 (e) all the trustees so selected are persons who are employees
of companies within the founding company’s group at the
relevant time, and who do not have and have never had
a material interest in any such company.
(4) For the purposes of this paragraph, a trustee shall be a pro-
fessional trustee at a particular time if—
(a) the trustee is then a trust corporation, a solicitor, or a mem-
ber of such other professional body as the Revenue Com-
missioners allow for the purposes of this subparagraph,
(b) the trustee is not then an employee or director of any com-
pany then within the founding company’s group, and
(c) the trustee meets the requirements ofsubparagraph (5),
and for the purposes of this paragraph a trustee shall be a non-pro-
fessional trustee at a particular time if the trustee is not then a pro-
fessional trustee for those purposes.
(5) A trustee shall meet the requirements of this subparagraph if—
(a) he or she was appointed as an initial trustee and, before
being appointed as trustee, was selected only by the per-
sons who later became the non-professional initial trus-
tees, or
(b) he or she was appointed as a replacement or additional
trustee and, before being appointed as trustee, was selec-
ted only by the persons who were the non-professional
trustees at the time of the selection.
(6) Trustees shall be selected in accordance with this subparagraph
if the process of selection is one under which—
(a) all the persons who are employees of the companies within
the founding company’s group at the time of the selec-
tion, and who do not have and have never had a material
interest in any such company, are, in so far as is reason-
ably practicable, given the opportunity to stand for
selection,
(b) all the employees of the companies within the founding com-
pany’s group at the time of the selection are, in so far as
is reasonably practicable, given the opportunity to vote,
and
(c) persons gaining more votes are preferred to those gaining
less.
(7) Trustees shall be selected in accordance with this subparagraph
if they are selected by persons elected to represent the employees of
the companies within the founding company’s group at the time of
the selection.
10. (1) This paragraph shall apply where the trust deed provides
that at any time while the trust subsists there shall be a single trustee.
(2) The trust deed shall—
1409

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.12
1410 (a) be so framed that at any time while the trust subsists the
trustee is a company which at that time is resident in the
State and controlled by the founding company;
(b) appoint the initial trustee;
(c) contain rules for the removal of any trustee and for the
appointment of a replacement trustee.
(3) The trust deed shall be so framed that at any time while the
trust subsists the company which is then the trustee is a company so
constituted that the conditions insubparagraph (4)are then fulfilled
as regards the persons who are then directors of the company, and
in that subparagraph ‘‘the relevant time’’ means that time and ‘‘the
trust company’’ means that company.
(4) The conditions referred to insubparagraph (3)are that—
(a) the number of directors is not less than 3;
(b) all the directors are resident in the State;
(c) the directors include at least one person who is a professional
director and at least 2 persons who are non-professional
directors;
(d) at least half of the non-professional directors were, before
being appointed as directors, selected in accordance with
subparagraph (7)or(8);
(e) all the directors so selected are persons who are employees
of companies within the founding company’s group at the
relevant time, and who do not have and have never had
a material interest in any such company.
(5) For the purposes of this paragraph, a director shall be a pro-
fessional director at a particular time if—
(a) the director is then a solicitor or a member of such other
professional body as the Revenue Commissioners may at
that time allow for the purposes of this subparagraph,
(b) the director is not then an employee of any company then
within the founding company’s group,
(c) the director is not then a director of any such company other
than the trust company, and
(d) the director meets the requirements ofsubparagraph (6),
and for the purposes of this paragraph a director shall be a non-
professional director at a particular time if the director is not then a
professional director for those purposes.
(6) A director shall meet the requirements of this subparagraph
if—
(a) he or she was appointed as an initial director and, before
being appointed as director, was selected only by the per-
sons who later became the non-professional initial direc-
tors, or

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.12 (b) he or she was appointed as a replacement or additional
director and, before being appointed as director, was
selected only by the persons who were the non-pro-
fessional directors at the time of the selection.
(7) Directors shall be selected in accordance with this subpara-
graph if the process of selection is one under which—
(a) all the persons who are employees of the companies within
the founding company’s group at the time of the selec-
tion, and who do not have and have never had a material
interest in any such company, are, in so far as is reason-
ably practicable, given the opportunity to stand for
selection,
(b) all the employees of the companies within the founding com-
pany’s group at the time of the selection are, in so far as
is reasonably practicable, given the opportunity to vote,
and
(c) persons gaining more votes are preferred to those gaining
less.
(8) Directors shall be selected in accordance with this subpara-
graph if they are selected by persons elected to represent the
employees of the companies within the founding company’s group at
the time of the selection.
Beneficiaries
11. (1) The trust deed shall contain provision as to the beneficiaries
under the trust in accordance with this paragraph.
(2) The trust deed shall provide that a person is a beneficiary at a
particular time (in this subparagraph referred to as ‘‘the relevant
time’’) if—
(a) the person is at the relevant time an employee or director of
a company at that time within the founding company’s
group,
(b) at each given time in a qualifying period the person was such
an employee or director of a company within the found-
ing company’s group at that given time, and
(c) in the case of a director, at that given time the person worked
as a director of the company concerned at the rate of at
least 20 hours a week (disregarding such matters as
holidays and sickness).
(3) The trust deed may provide that a person is a beneficiary at a
particular time (in this subparagraph referred to as ‘‘the relevant
time’’) if—
(a) the person has at each given time in a qualifying period been
an employee or director of a company within the found-
ing company’s group at that given time,
(b) the person has ceased to be an employee or director of the
company or the company has ceased to be within that
group, and
1411

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.12
1412 (c) at the relevant time a period of not more than 18 months
has elapsed since the person so ceased or the company
so ceased, as the case may be.
(4) The trust deed may provide for a person to be a beneficiary if
the person is a charity and the circumstances are such that—
(a) there is no person who is a beneficiary within the rule which
is included in the deed and conforms withsubparagraph
(2)or with any rule which is so included and conforms
withsubparagraph (3), and
(b) the trust is in consequence being wound up.
(5) For the purposes ofsubparagraph (2), a qualifying period shall
be a period—
(a) whose length is not more than 5 years,
(b) whose length is specified in the trust deed, and
(c) which ends with the relevant time (within the meaning of
that subparagraph).
(6) For the purposes ofsubparagraph (3), a qualifying period shall
be a period—
(a) whose length is equal to that of the period specified in the
trust deed for the purposes of a rule which conforms with
subparagraph (2), and
(b) which ends when the person or company, as the case may
be, ceased as mentioned insubparagraph (3)(b).
(7) The trust deed shall not provide for a person to be a benefici-
ary unless the person is within the rule which is included in the deed
and conforms withsubparagraph (2)or any rule which is so included
and conforms withsubparagraph (3)or(4).
(8) The trust deed shall provide that, notwithstanding any other
rule which is included in it, a person cannot be a beneficiary at a
particular time (in this subparagraph referred to as ‘‘the relevant
time’’) by virtue of a rule which conforms withsubparagraph (2),(3)
or(4)if—
(a) at the relevant time the person has a material interest in the
founding company, or
(b) at any time in the period of one year preceding the relevant
time the person has had a material interest in that
company.
(9) For the purposes of this paragraph, ‘‘charity’’ means any body
of persons or trust established for charitable purposes only.
Trustees’ functions
12. (1) The trust deed shall contain provision as to the functions
of the trustees.
(2) The functions of the trustees shall be so expressed that it is
apparent that their general functions are—

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.12 (a) to receive sums from the founding company and other sums,
by means of loan or otherwise;
(b) to acquire securities;
(c) to grant rights to acquire shares to persons who are benefici-
aries under the terms of the trust deed;
(d) to transfer either or both securities and sums to persons who
are beneficiaries under the terms of the trust deed;
(e) to transfer securities to the trustees of profit sharing schemes
approved underPart 2ofSchedule 11;
(f) pending transfer, to retain the securities and to manage them,
whether by exercising voting rights or otherwise.
Sums
13. (1) The trust deed shall require that any sum received by the
trustees —
(a) shall be expended within the expenditure period,
(b) may be expended only for one or more of the qualifying
purposes, and
(c) shall, while it is retained by them, be kept as cash, or be kept
in an account with a relevant deposit taker (within the
meaning ofsection 256).
(2) For the purposes ofsubparagraph (1), the expenditure period
shall be the period of 9 months beginning on the day determined as
follows—
(a) in a case where the sum is received from the founding com-
pany, or a company which is controlled by that company
at the time the sum is received, the day following the end
of the accounting period in which the sum is expended
by the company from which it is received;
(b) in any other case, the day the sum is received.
(3) For the purposes ofsubparagraph (1), each of the following
shall be a qualifying purpose—
(a) the acquisition of shares in the founding company;
(b) the repayment of sums borrowed;
(c) the payment of interest on sums borrowed;
(d) the payment of any sum to a person who is a beneficiary
under the terms of the trust deed;
(e) the meeting of expenses.
(4) The trust deed shall provide that, in ascertaining for the pur-
poses of a relevant rule (being a provision which is included in the
trust deed and conforms withsubparagraph (1)) whether a particular
sum has been expended, sums received earlier by the trustees shall
be treated as expended before sums received by them later.
1413

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.12
1414 (5) The trust deed shall provide that, where the trustees pay sums
to different beneficiaries at the same time, all the sums shall be paid
on similar terms.
(6) For the purposes ofsubparagraph (5), the fact that terms vary
according to the levels of remuneration of beneficiaries, the length
of their service or similar factors shall not be regarded as meaning
that the terms are not similar.
Securities
14. (1) Subject toparagraph 15, the trust deed shall provide that
securities acquired by the trustees shall be shares in the founding
company which—
(a) form part of the ordinary share capital of the company,
(b) are fully paid up,
(c) are not redeemable, and
(d) are not subject to any restrictions other than restrictions
which attach to all shares of the same class or a restriction
authorised bysubparagraph (2).
(2) Subject tosubparagraph (3), a restriction shall be authorised
by this subparagraph if—
(a) it is imposed by the founding company’s articles of
association,
(b) it requires all shares held by directors or employees of the
founding company, or of any other company which it con-
trols for the time being, to be disposed of on ceasing to
be so held, and
(c) it requires all shares acquired, in pursuance of rights or
interests obtained by such directors or employees, by per-
sons who are not, or have ceased to be, such directors or
employees to be disposed of when they are acquired.
(3) A restriction shall not be authorised bysubparagraph (2)
unless —
(a) any disposal required by the restriction will be by means of
sale for a consideration in money on terms specified in
the articles of association, and
(b) the articles also contain general provisions by virtue of which
any person disposing of shares of the same class (whether
or not held or acquired as mentioned insubparagraph
(2)) may be required to sell them on terms which are the
same as those mentioned inclause (a).
(4) The trust deed shall provide that shares in the founding com-
pany may not be acquired by the trustees at a price exceeding the
price they might reasonably be expected to fetch on a sale in the
open market.
(5) The trust deed shall provide that shares in the founding com-
pany may not be acquired by the trustees at a time when that com-
pany is controlled by another company.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.12 15. The trust deed may provide that the trustees may acquire
securities other than shares in the founding company—
(a) if they are securities acquired by the trustees as a result of a
reorganisation or reduction of share capital, and the orig-
inal shares the securities represent are shares in the
founding company (construing ‘‘reorganisation or
reduction of share capital’’ and ‘‘original shares’’ in
accordance withsection 584), or
(b) if they are securities issued to the trustees in exchange in
circumstances mentioned insection 586.
16. (1) The trust deed shall provide that—
(a) where the trustees transfer securities to a beneficiary, they
shall do so on qualifying terms;
(b) the trustees shall transfer securities before the expiry of 20
years beginning on the date on which they acquired them.
(2) For the purposes ofsubparagraph (1),a transfer of securities
shall be made on qualifying terms if—
(a) all the securities transferred at the same time are transferred
on similar terms,
(b) securities have been offered to all the persons who are ben-
eficiaries under the terms of the trust deed when the
transfer is made, and
(c) securities are transferred to all such beneficiaries who have
accepted.
(3) For the purposes ofsubparagraph (2), the fact that terms vary
according to the levels of remuneration of beneficiaries, the length
of their service or similar factors shall not be regarded as meaning
that the terms are not similar.
(4) The trust deed shall provide that, in ascertaining for the pur-
poses of a relevant rule (being a provision which is included in the
trust deed and conforms withsubparagraph (1)) whether particular
securities are transferred, securities acquired earlier by the trustees
shall be treated as transferred by them before securities acquired by
them later.
Other features
17. The trust deed shall not contain features which are not essen-
tial or reasonably incidental to the purpose of acquiring sums and
securities, transferring sums and securities to employees and direc-
tors, and transferring securities to the trustees of profit sharing
schemes approved underPart 2ofSchedule 11.
18. (1) The trust deed shall provide that for the purposes of the
deed the trustees—
(a) acquire securities when they become entitled to them;
(b) transfer securities to another person when that other person
becomes entitled to them;
(c) retain securities if they remain entitled to them.
1415

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.12
Section 521.
[FA92 Sch2; FA94
s11; FA96 s8] 1416 (2) Where the trust deed provides for the matter set out inpara-
graph 15, the trust deed shall provide for the following exceptions to
any rule which is included in it and conforms withsubparagraph
(1)(a), namely—
(a) if the trustees become entitled to securities as a result of a
reorganisation or reduction of share capital, they shall be
treated as having acquired them when they became
entitled to the original shares which those securities rep-
resent (construing ‘‘reorganisation or reduction of share
capital’’ and ‘‘original shares’’ in accordance withsection
584);
(b) if securities are issued to the trustees in exchange in circum-
stances mentioned insection 586, they shall be treated as
having acquired them when they became entitled to the
securities for which they are exchanged.
(3) The trust deed shall provide that—
(a) if the trustees agree to take a transfer of securities, for the
purposes of the deed they become entitled to them when
the agreement is made and not on a later transfer made
pursuant to the agreement;
(b) if the trustees agree to transfer securities to another person,
for the purposes of the deed the other person becomes
entitled to them when the agreement is made and not on
a later transfer made pursuant to the agreement.
SCHEDULE 13
Accountable Persons for Purposes of Chapter1of Part18
1. A Minister of the Government.
2. A local authority within the meaning of section 2(2) of the
Local Government Act, 1941.
3. A body established under the Local Government Services
(Corporate Bodies) Act, 1971.
4. A health board.
5. The General Medical Services (Payments) Board established
under the General Medical Services (Payments) Board
(Establishment) Order, 1972 (S.I. No. 184 of 1972).
6. The Attorney General.
7. The Comptroller and Auditor General.
8. The Director of Public Prosecutions.
9. The Commissioner of Valuation.
10. The Chief Boundary Surveyor.
11. The Director of Ordnance Survey.
12. The Revenue Commissioners.
13. The Civil Service Commissioners.
14. The Commissioners of Public Works in Ireland.
15. The Clerk of Da´
il E´
ireann.
16. The Legal Aid Board.
17. A vocational education committee or a technical college
established under the Vocational Education Act, 1930.
18. Teagasc.
19. A harbour authority.
20. An Foras A´
iseanna Saothair.
21. U´
dara´
s na Gaeltachta.
22. The Industrial Development Agency (Ireland).
23. An Bord Tra´
chta´
la — The Irish Trade Board.
24. Shannon Free Airport Development Company Limited.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.13 25. Bord Fa´
ilte E´
ireann.
26. An institution of higher education within the meaning of the
Higher Education Authority Act, 1971.
27. CERT Limited.
28. The Radiological Protection Institute of Ireland.
29. A voluntary public or joint board hospital to which grants are
paid by the Minister for Health and Children in the year
1988-89 or any subsequent year of assessment.
30. An authorised insurer within the meaning ofsection 470.
31. An Bord Glas.
32. An Bord Pleana´
la.
33. ACC Bank plc.
34. Aer Lingus Group plc.
35. Aer Rianta cuideachta phoibl´
theoranta.
36. Arramara Teoranta.
37. Blood Transfusion Service Board.
38. An Bord Bia.
39. Bord na gCon.
40. Bord Ga´
is E´
ireann.
41. Bord Iascaigh Mhara.
42. Bord na Mo´
na.
43. Bord Telecom E´
ireann.
44. Coillte Teoranta.
45. The Combat Poverty Agency.
46. Coras Iompair E´
ireann.
47. Custom House Docks Development Authority.
48. Electricity Supply Board.
49. Housing Finance Agency plc.
50. ICC Bank plc.
51. Irish National Petroleum Corporation Limited.
52. Irish National Stud Company Limited.
53. National Building Agency Limited.
54. National Concert Hall Company Limited.
55. The Marine Institute.
56. An Post National Lottery Company.
57. N´
trigin E´
ireann Teoranta.
58. An Post.
59. Radio Telef´
sE´
ireann.
60. National Rehabilitation Board.
61. Royal Hospital Kilmainham Company.
62. The Environmental Protection Agency.
63. Forbairt.
64. Forfa´
s.
65. The Irish Aviation Authority.
66. The National Economic and Social Council.
67. The National Economic and Social Forum.
68. The National Roads Authority.
69. Temple Bar Properties Limited.
70. The Irish Film Board.
71. An educational institution established by or under section 3
of the Regional Technical Colleges Act, 1992, as a regional
technical college.
72. The Dublin Institute of Technology.
73. Area Development Management Limited.
74. The Commissioner of Irish Lights.
75. Dublin Transportation Office.
76. The Heritage Council.
77. The Higher Education Authority.
78. The Independent Radio and Television Commission.
79. The Irish Horseracing Authority.
80. The Labour Relations Commission.
81. National Safety Council.
82. The Pensions Board.
1417

[No.39.]Taxes Consolidation Act,1997. [1997.] Section 566.
[CGTA75 Sch3;
CTA76 s140(2) and
Sch2 PtII Par11] 1418 SCHEDULE 14
Capital Gains Tax: Leases
Interpretation
1. In this Schedule, ‘‘premium’’ includes any like sum, whether
payable to the intermediate or a superior lessor and, for the purposes
of this Schedule, any sum (other than rent) paid on or in connection
with the granting of a tenancy shall be presumed to have been paid
by means of a premium except in so far as other sufficient consider-
ation for the payment is shown to have been given.
Leases of land as wasting assets: restriction of allowable expenditure
2. (1) A lease of land shall not be a wasting asset until its duration
does not exceed 50 years.
(2) Where at the beginning of the period of ownership of a lease
of land it is subject to a sub-lease not at a rent representing the full
value of the land together with any buildings on the land, and the
value of the lease at the end of the duration of the sub-lease, esti-
mated as at the beginning of the period of ownership, exceeds the
expenditure allowable undersection 552(1)(a)in computing the gain
accruing on a disposal of the lease, the lease shall not be a wasting
asset until the end of the duration of the sub-lease.
(3) In the case of a wasting asset which is a lease of land, the rate
at which expenditure is assumed to be written off shall, instead of
being a uniform rate as provided bysection 560(3), be a rate fixed in
accordance with the Table to this paragraph.
(4) Accordingly, for the purposes of the computation underChap-
ter 2ofPart 19of the gain accruing on a disposal of a lease, and
where—
(a) the percentage derived from the Table to this paragraph for
the duration of the lease at the beginning of the period
of ownership is P (1),
(b) the percentage so derived for the duration of the lease at
the time when any item of expenditure attributable to the
lease undersection 552(1)(b)is first reflected in the nat-
ure of the lease is P (2), and
(c) the percentage so derived for the duration of the lease at
the time of the disposal is P (3),
then—
(i) there shall be excluded from the expenditure attributable to
the lease undersection 552(1)(a)a fraction equal to—
P(1)−P(3)
P(1)
and
(ii) there shall be excluded from any item of expenditure attribu-
table to the lease undersection 552(1)(b)a fraction equal
to—

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.14 P(2)−P(3)
P(2).
(5) This paragraph shall apply notwithstanding that the period of
ownership of the lease is a period exceeding 50 years, and accord-
ingly no expenditure shall be written off under this paragraph in
respect of any period earlier than the time when the lease becomes
a wasting asset.
(6)Section 561shall apply in relation to this paragraph as it
applies in relation tosubsections (3)to(5)ofsection 560.
(7) Where the duration of the lease is not an exact number of
years, the percentage to be derived from the Table to this paragraph
shall be the percentage for the whole number of years plus one-
twelfth of the difference between that percentage and the percentage
for the next higher number of years for each odd month, counting
an odd 14 days or more as one month.
TABLE
Years Percentage Years Percentage
50 (or more) 100.0 25 81.1
49 99.7 24 79.6
48 99.3 23 78.1
47 98.9 22 76.4
46 98.5 21 74.6
45 98.1 20 72.8
44 97.6 19 70.8
43 97.1 18 68.7
42 96.6 17 66.5
41 96.0 16 64.1
40 95.5 15 61.6
39 94.8 14 59.0
38 94.2 13 56.2
37 93.5 12 53.2
36 92.8 11 50.0
35 92.0 10 46.7
34 91.2 9 43.2
33 90.3 8 39.4
32 89.4 7 35.4
31 88.4 6 31.2
30 87.3 5 26.7
29 86.2 4 22.0
28 85.1 3 17.0
27 83.8 2 11.6
26 82.5 1 6.0
0 0.0
Premiums for leases
3. (1) Subject to this Schedule, where the payment of a premium
is required under a lease of land or otherwise under the terms subject
1419

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.14
1420 to which a lease of land is granted, there shall be a part disposal of
the freehold or other asset out of which the lease is granted.
(2) In applyingsection 557to such a part disposal, the property
which remains undisposed of shall include a right to any rent or other
payments (other than a premium) payable under the lease, and that
right shall be valued as at the time of the part disposal.
Payments during currency of lease treated as premium
4. (1) Where under the terms subject to which a lease of land is
granted a sum becomes payable by the lessee in place of the whole
or part of the rent for any period or as consideration for the surren-
der of the lease, the lease shall be deemed for the purposes of this
Schedule to have required the payment of a premium to the lessor
(in addition to any other premium) of an amount equal to that sum
for the period in relation to which the sum is payable.
(2) Where as consideration for the variation or waiver of any of
the terms of a lease of land a sum becomes payable by the lessee
otherwise than as rent, the lease shall be deemed for the purposes
of this Schedule to have required the payment of a premium to the
lessor (in addition to any other premium) of an amount equal to that
sum for the period from the time when the variation or waiver takes
effect to the time when it ceases to have effect.
(3) Where undersubparagraph (1)or(2)a premium is deemed to
have been received by the lessor otherwise than as consideration for
the surrender of the lease, then—
(a) subject toclause (b), both the lessor and the lessee shall
be treated as if that premium were or were part of the
consideration for the grant of the lease due at the time
when the lease was granted, but
(b) if the lessor is a lessee under a lease the duration of which
does not exceed 50 years, this Schedule shall apply as if—
(i) that premium had been given as consideration for the
grant of the part of the sub-lease covered by the per-
iod in respect of which the premium is deemed to
have been paid, and
(ii) that consideration were expenditure incurred by the
sub-lessee and attributable to that part of the sub-
lease undersection 552(1)(b).
(4) Wheresubparagraph (3)(a)applies, the gain accruing to the
lessor on the disposal by means of the grant of the lease shall be
recomputed and any necessary adjustments of capital gains tax shall
be made accordingly, whether by means of assessment for the year
in which the premium is deemed to have been received or by means
of discharge or repayment of tax.
(5) Where undersubparagraph (1)a premium is deemed to have
been received as consideration for the surrender of a lease, that pre-
mium shall be regarded as consideration for a separate transaction
consisting of the disposal by the lessor of the lessor’s interest in the
lease.
(6)Subparagraph (2)shall apply in relation to a transaction not
at arm’s length, and in particular in relation to a transaction entered
into gratuitously, as if such sum had become payable by the tenant

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.14 otherwise than as rent as might have been required of the tenant if
the transaction had been at arm’s length.
(7)Subparagraph (4)shall apply for the purposes of corporation
tax as it applies for the purposes of capital gains tax.
Sub-leases out of short leases
5. (1) This paragraph shall apply in relation to a lease which is a
wasting asset.
(2) In the computation underChapter 2ofPart 19of the gain
accruing on the part disposal of a lease by means of the grant of a
sub-lease for a premium (in this paragraph referred to as ‘‘the actual
premium’’), the expenditure attributable to the lease underpara-
graphs (a)and(b)ofsection 552(1)shall be apportioned in accord-
ance with this paragraph, andsection 557shall not apply.
(3) Out of each item of the expenditure attributable to the lease
underparagraphs (a)and(b)ofsection 552(1)there shall be
apportioned to the part disposal—
(a) if the amount of the actual premium is not less than the
amount which would be obtainable by means of a pre-
mium for the sub-lease if the rent payable under the sub-
lease were the same as the rent payable under the lease
(in this paragraph referred to as ‘‘the full premium’’), the
amount (in this paragraph referred to as ‘‘the allowable
amount’’) which underparagraph 2(3)is to be written off
over the period which is the duration of the sub-lease,
and
(b) if the amount of the actual premium is less than the full
premium, such proportion of the allowable amount as is
equal to the proportion which the actual premium bears
to the full premium.
(4) Where the sub-lease is a sub-lease of only part of the land
comprised in the lease, this paragraph shall apply only in relation
to a proportion of the expenditure attributable to the lease under
paragraphs (a)and(b)ofsection 552(1)which is the same as the
proportion which the value of the land comprised in the sub-lease at
the time when the sub-lease is granted bears to the value of that
land and the other land comprised in the lease at that time, and the
remainder of that expenditure shall be apportioned to the other land.
Exclusion of premiums taxed under Case V of Schedule D
6. (1) Where by reference to any premium income tax has
become chargeable undersection 98on any amount, that amount
shall be excluded from the consideration taken into account in the
computation underChapter 2ofPart 19of a gain accruing on a dis-
posal of the interest in respect of which income tax becomes so
chargeable, except where in an apportionment undersection 557the
value of the consideration is taken into account in the aggregate of
that value and the market value of the property which remains undis-
posed of.
(2) Where by reference to any premium in respect of a sub-lease
granted out of a lease, being a lease the duration of which does not
at the time of granting the lease exceed 50 years, income tax has
become chargeable undersection 98on any amount, that amount
shall be deducted from any gain (as computed in accordance with
1421

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.14
1422 the provisions of the Capital Gains Tax Acts apart from this
subparagraph) accruing on the disposal for which the premium is
consideration, but not so as to convert the gain into a loss or to
increase any loss.
(3) (a) Subject toclause (b), where income tax has become
chargeable undersection 100on any amount (in this sub-
paragraph referred to as ‘‘the relevant amount’’), the rel-
evant amount shall be excluded from the consideration
taken into account in the computation underChapter 2
ofPart 19of a gain accruing on the disposal of the estate
or interest in respect of which income tax becomes so
chargeable, except where in an apportionment made
undersection 557the value of the consideration is taken
into account in the aggregate of that value and the mar-
ket value of the property which remains undisposed of.
(b) If the part or interest disposed of is the remainder of a
lease or a sub-lease out of a lease the duration of which
does not exceed 50 years,clause (a)shall not apply, but
the relevant amount shall be deducted from any gain (as
computed in accordance with the provisions of the Capi-
tal Gains Tax Acts apart from this subparagraph) accru-
ing on the disposal, but not so as to convert the gain into
a loss or to increase any loss.
(4) References insubparagraphs (1)and(2)to a premium include
references to a premium deemed to have been received undersub-
section (3)or(4)ofsection 98.
(5)Section 551shall not be taken as authorising the exclusion of
any amount from the consideration for a disposal of assets taken into
account in the computation of the gain underChapter 2ofPart 19
by reference to any amount chargeable to tax undersection 75and
Chapter 8ofPart 4.
Disallowance of premium treated as rent under superior lease
7. (1) Where undersection 103(2)a person is to be treated as
paying additional rent in consequence of having granted a sub-lease,
the amount of any loss accruing to such person on the disposal by
means of the grant of the sub-lease shall be reduced by the total
amount of the rent which such person is thereby treated as paying
over the term of the sub-lease (and without regard to whether relief
is thereby effectively given over the term of the sub-lease), but not
so as to convert the loss into a gain or to increase any gain.
(2) Nothing insection 551shall be taken as applying in relation to
any amount on which tax is paid undersection 99.
(3) Where any adjustment is made underparagraph (b)ofsection
100(2), on a claim under that paragraph, any necessary adjustment
shall be made to give effect to the consequences of the claim on the
operation of this paragraph orparagraph 6.
Expenditure by lessee under terms of lease
8. If undersection 98(2)income tax is chargeable on any amount
as being a premium the payment of which is deemed to be required
by the lease, the person so chargeable shall be treated for the pur-
poses of the computation of any gain accruing to that person on the
disposal by means of the grant of the lease, and on any subsequent
disposal of the asset out of which the lease was granted, as having

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.14 incurred at the time the lease was granted expenditure of that
amount (in addition to any other expenditure) attributable to the
asset undersection 552(1)(b).
Duration of leases
9. (1) In ascertaining for the purposes of the Capital Gains Tax
Acts the duration of a lease of land, the following provisions of this
paragraph shall apply.
(2) Where the terms of the lease include provision for the deter-
mination of the lease by notice given by the lessor, the lease shall
not be treated as granted for a term longer than one ending at the
earliest date on which it could be determined by notice given by the
lessor.
(3) Where any of the terms of the lease (whether relating to for-
feiture or to any other matter) or any other circumstances render it
unlikely that the lease will continue beyond a date falling before the
expiration of the term of the lease, the lease shall not be treated as
having been granted for a term longer than one ending on that date,
and this subparagraph shall apply in particular where the lease pro-
vides for the rent to be increased after a given date, or for the lessee’s
obligations to become in any other respect more onerous after a
given date, but includes provision for the determination of the lease
on that date by notice given by the lessee, and those provisions ren-
der it unlikely that the lease will continue beyond that date.
(4) Where the terms of the lease include provision for the exten-
sion of the lease beyond a given date by notice given by the lessee,
this paragraph shall apply as if the term of the lease extended for as
long as it could be extended by the lessee, but subject to any right
of the lessor by notice to determine the lease.
(5) The duration of a lease shall be decided in relation to the grant
or any disposal of the lease by reference to the facts which were
known or ascertainable at the time when the lease was acquired or
created.
Leases of property other than land
10. (1)Paragraphs 3to5and9shall, subject to any necessary
modifications, apply in relation to leases of property other than land
as they apply to leases of land.
(2) In the case of a lease of a wasting asset which is movable prop-
erty, the lease shall be assumed to terminate not later than the end
of the life of the wasting asset.
SCHEDULE 15
List of Bodies for Purposes of Section610
PART 1
1. An unregistered friendly society whose income is exempt
from income tax undersection 211(1).
2. A registered friendly society whose income is exempt from
income tax undersection 211(1).
3. A registered trade union to the extent that its income is
exempt from income tax undersection 213.
1423
Section 610.
[CGTA75 s23;
FA89 s33; FA91
s20(2) and s44;
FA94 s32(5); FA95
s44(1) and (3);
FA96 s39(1) and (6)
and s64] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.15
Section 703.
[FA90 Sch3] 1424 4. A local authority within the meaning of section 2(2) of the
Local Government Act, 1941.
5. A body established under the Local Government Services
(Corporate Bodies) Act, 1971.
6. The Central Bank of Ireland.
7. A health board.
8. A vocational education committee established under the
Vocational Education Act, 1930.
9. A committee of agriculture established under the Agriculture
Act, 1931.
10. Bord Fa´
ilte E´
ireann.
11. The Dublin Regional Tourism Organisation Limited.
12. Dublin City and County Regional Tourism Organisation
Limited.
13. The South-Eastern Regional Tourism Organisation Limited.
14. South-West Regional Tourism Organisation Limited.
15. The Western Regional Tourism Organisation Limited.
16. The North-West Regional Tourism Organisation Limited.
17. Midlands-East Regional Tourism Organisation Limited.
18. Tramore Fa´
ilte Limited.
19. The National Treasury Management Agency.
20. Eolas—The Irish Science and Technology Agency.
21. Forbairt.
22. Forfa´
s.
23. The Industrial Development Agency (Ireland).
24. The Industrial Development Authority.
25. Shannon Free Airport Development Company Limited.
26. U´
dara´
s na Gaeltachta.
27. The Irish Horseracing Authority.
28. The company incorporated on the 1st day of December, 1994,
as Irish Thoroughbred Marketing Limited.
29. The company incorporated on the 1st day of December, 1994,
as Tote Ireland Limited.
30. A body designated under section 4(1) of the Securitisation
(Proceeds of Certain Mortgages) Act, 1995.
31. The Dublin Docklands Development Authority.
32. The Interim Board established under the Milk (Regulation
of Supply) (Establishment of Interim Board) Order, 1994
(S.I. No. 408 of 1994).
PART 2
1. The Dublin District Milk Board established under the Dublin
District Milk Board Order, 1936 (S.R. & O., No. 254 of 1936).
2. The Cork District Milk Board established under the Cork
District Milk Board Order, 1937 (S.R. & O., No. 91 of 1937).
3. The company incorporated on the 19th day of November,
1991, as Dairysan Limited.
4. The company incorporated on the 14th day of February,
1994, as Glenlee (Cork) Limited.
SCHEDULE 16
Building Societies: Change of Status
Capital allowances
1. (1) For the purposes of the allowances and charges provided
for bysections 307and308, the trade of the society concerned shall
not be treated as permanently discontinued and the trade of the suc-
cessor company shall not be treated as a new trade set up and com-
menced by the successor company.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.16 (2) There shall be made to or on the successor company in accord-
ance withsections 307and308all such allowances and charges as
would have been made to or on the society if the society had con-
tinued to carry on the trade, and the amount of any such allowance
or charge shall be computed as if the successor company had been
carrying on the trade since the society began to do so and as if every-
thing done to or by the society had been done to or by the successor
company.
(3) The conversion of the society into the successor company shall
not be treated as giving rise to any such allowance or charge.
Financial assets
2. (1) In this paragraph—
‘‘financial assets’’ means assets held by the society in accordance with
subsections (1) and (3) of section 39 of the Building Societies Act,
1989;
‘‘financial trading stock’’ means such of the financial assets of the
society as would constitute trading stock for the purposes ofsection
89.
(2) For the purposes ofsection 89, the financial trading stock of
the society concerned shall be valued at an amount equal to its cost
to the society.
(3) Where a society converts itself into the successor company,
the vesting in the successor company of any financial assets, the pro-
fits or gains on the disposal of which would be chargeable to tax
under Case I of Schedule D, shall be treated for the purposes of
corporation tax as not constituting a disposal of those assets by the
society; but, on the disposal of any of those assets by the successor
company, the profits or gains accruing to the successor company shall
be calculated (for the purposes of corporation tax) as if those assets
had been acquired by the successor company at their cost to the
society.
Capital gains: assets vested in the successor company, etc
3. (1) For the purposes of capital gains tax and corporation tax
on chargeable gains, the conversion of a society into the successor
company shall not constitute—
(a) a disposal by the society of assets owned by it immediately
before the conversion, or
(b) the acquisition at that time by the successor company of
assets which immediately before the conversion were
owned by the society.
(2) The Capital Gains Tax Acts, and the Corporation Tax Acts in
so far as those Acts relate to chargeable gains, shall apply where a
society has converted itself into the successor company as if the suc-
cessor company had—
(a) acquired the assets which vested in the successor company
on conversion at the same time and for the same con-
sideration at which they were acquired by the society,
(b) been in existence as a company at all times since the society
was incorporated,
1425

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.16
1426 (c) done all things done by the society relating to the acquisition
and disposal of the assets which vested in the successor
company on conversion, and
(d) done all other things done by the society before the
conversion.
Capital gains: shares, and rights to shares, in successor company
4. (1) In this paragraph—
‘‘free shares’’, in relation to a member of the society, means any
shares issued by the successor company to that member in connec-
tion with the conversion but for no new consideration;
‘‘member’’, in relation to the society, means a person who is or has
been a member of the society, in that capacity, and any reference to
a member includes a reference to a member of any particular class
or description;
‘‘new consideration’’ means consideration other than—
(a) consideration provided directly or indirectly out of the
assets of the society or the successor company, or
(b) consideration derived from a member’s shares or other
rights in the society or the successor company.
(2) Where in connection with the conversion there are conferred
on members of the society concerned any rights—
(a) to acquire shares in the successor company in priority to
other persons,
(b) to acquire shares in that company for consideration of an
amount or value lower than the market value of the
shares, or
(c) to free shares in that company,
any such rights so conferred on a member shall be regarded for the
purposes of capital gains tax as an option (within the meaning of
section 540) granted to and acquired by the member for no consider-
ation and having no value at the time of that grant and acquisition.
(3) Where in connection with the conversion shares in the suc-
cessor company are issued by that company to a member of the
society concerned, those shares shall be regarded for the purposes of
capital gains tax—
(a) as acquired by the member for a consideration of an amount
or value equal to the amount or value of any new con-
sideration given by the member for the shares or, if no
new consideration is given, as acquired for no consider-
ation, and
(b) as having at the time of their acquisition by the member a
value equal to the amount or value of the new consider-
ation so given or, if no new consideration is given, as
having no value;

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.16 but this subparagraph is without prejudice to the application where
appropriate ofsubparagraph (2).
(4)Subparagraph (5)shall apply in any case where—
(a) in connection with the conversion, shares in the successor
company are issued by that company to trustees on terms
which provide for the transfer of those shares to members
of the society for no new consideration, and
(b) the circumstances are such that in the hands of the trustees
the shares constitute settled property within the meaning
of the Capital Gains Tax Acts.
(5) Where this subparagraph applies, then, for the purposes of
capital gains tax—
(a) the shares shall be regarded as acquired by the trustees for
no consideration,
(b) the interest of any member in the settled property consti-
tuted by the shares shall be regarded as acquired by that
member for no consideration and as having no value at
the time of its acquisition, and
(c) where on the occasion of a member becoming absolutely
entitled as against the trustees to any of the settled prop-
erty, both the trustees and the member shall be treated
as if, on the member becoming so entitled, the shares in
question had been disposed of and immediately reac-
quired by the trustees, in their capacity as trustees within
section 567(2), for a consideration of such an amount as
would secure that on the disposal neither a gain nor a
loss would accrue to the trustees and, accordingly,section
576(1)shall not apply in relation to that occasion.
(6) References in this paragraph to the case where a member
becomes absolutely entitled to settled property as against the trustees
shall be taken to include references to the case where the member
would become so entitled but for being a minor or otherwise under
a legal disability.
SCHEDULE 17
Reorganisation into Companies of Trustee Savings Banks
Interpretation
1. In this Schedule—
‘‘bank’’ means either or both a trustee savings bank and a bank
within the meaning of section 57(3)(c)(i) of the Trustee Savings
Banks Act, 1989, as the context requires;
‘‘successor’’ means the company to which any property, rights, liab-
ilities and obligations are transferred in the course of a transfer;
‘‘transfer’’ means the transfer by a trustee savings bank of all or part
of its property and rights and all of its liabilities or obligations under
an order made by the Minister for Finance under section 57 of the
Trustee Savings Banks Act, 1989, authorising the reorganisation of
1427
Section 705.
[FA90 Sch4] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.17
1428 one or more trustee savings banks into a company or the reorganis-
ation of a company referred to in subsection (3)(c)(i) of that section
into a company referred to in subsection (3)(c)(ii) of that section.
Capital allowances
2. (1) This paragraph shall apply for the purposes of—
(a) allowances and charges provided for inPart 9,section 670,
Chapter 1ofPart 29andsections 765and769, or any
other provision of the Tax Acts relating to the making of
allowances or charges under or in accordance with that
Part or Chapter or those sections, and
(b) allowances or charges provided for bysections 307and308.
(2) The transfer shall not be treated as giving rise to any allowance
or charge provided for undersubparagraph (1).
(3) There shall be made to or on the successor in accordance with
sections 307and308all such allowances and charges as would, if the
bank had continued to carry on the trade, have been made to or on
the bank, and the amount of any such allowance or charge shall be
computed as if the successor had been carrying on the trade since
the trustee savings bank began to do so and as if everything done to
or by the bank had been done to or by the successor; but the suc-
cessor shall not be entitled to any amount which would have been
made to the trustee savings bank by virtue only ofsection 304(4).
Trading losses
3. Notwithstanding any other provision of the Tax Acts—
(a) a company referred to in subsection (3)(c)(i) of section 57
of the Trustee Savings Banks Act, 1989, which becomes
a company referred to in subsection (3)(c)(ii) of that
section shall not be entitled to relief undersection 396(1)
in respect of any loss incurred by the company in a trade
in any accounting period or part of an accounting period
in which it was a company referred to in subsection
(3)(c)(i) of section 57 of the Trustee Savings Banks Act,
1989, and
(b) a company referred to in subsection (3)(c)(ii) of section 57
of that Act shall not be entitled to relief undersection
396(1)in respect of any loss incurred by a company
referred to in subsection (3)(c)(i) of section 57 of that
Act.
Financial assets
4. (1) In this paragraph, ‘‘financial trading stock’’ means such of
the assets of the bank as would constitute trading stock for the pur-
poses ofsection 89.
(2) For the purposes ofsection 89, the financial trading stock of
the bank concerned shall be valued at an amount equal to or treated
for the purposes ofsubparagraph (3)as its cost to that bank.
(3) The acquisition in the course of a transfer by the successor of
any assets, the profits or gains on the disposal of which by the bank
would be chargeable to tax under Case I of Schedule D, shall be
treated for the purposes of income tax and corporation tax as not

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.17 constituting a disposal of those assets by that bank; but, on the dis-
posal of any of those assets by the successor, the profits or gains
accruing to the successor shall be calculated (for the purposes of
corporation tax) as if those assets had been acquired by the successor
at their cost to the bank.
Capital gains
5. (1) This paragraph shall apply for the purposes of the Capital
Gains Tax Acts, and of the Corporation Tax Acts in so far as those
Acts relate to chargeable gains.
(2) The disposal of an asset by a bank to a company in the course
of a transfer shall be deemed to be for a consideration of such
amount as would secure that on the disposal neither a gain nor a loss
would accrue to the bank.
(3) Wheresubparagraph (2)has applied in relation to the disposal
of an asset by the bank, then, in relation to a subsequent disposal of
the asset, the successor shall be treated as if the acquisition or pro-
vision of the asset by—
(a) the trustee savings bank, or
(b) if the asset was not acquired or provided by the trustee sav-
ings bank, the bank within the meaning of section
57(3)(c)(i) of the Trustee Savings Banks Act, 1989,
were the successor’s acquisition or provision of the asset.
(4) Any allowable losses accruing at any time to a bank shall, on
a transfer and in so far as they have not been allowed as a deduction
from chargeable gains, be treated as allowable losses which accrued
at that time to the successor.
(5) For the purposes ofsection 597, the bank and the successor
shall be treated as if they were the same person.
(6) Where the liability in respect of any debt owed to a bank is
transferred in the course of a transfer to a successor, the successor
shall be treated as the original creditor for the purposes ofsection
541.
SCHEDULE 18
Accounting for and Payment of Tax Deducted from Relevant
Payments and Undistributed Relevant Income
Time and manner of payment
1. (1) Notwithstanding any other provision of the Acts, this para-
graph shall apply for the purpose of regulating the time and manner
in which tax deducted in accordance withsection 734(5)shall be
accounted for and paid.
(2) A collective investment undertaking which is not a specified
collective investment undertaking shall, within 15 days from the 5th
day of April each year, make a return to the Collector-General of
all amounts from which it was required bysection 734(5)to deduct
tax in the year ending on that date and of the amount of appropriate
tax which it was required to deduct from those amounts.
1429
Section 734(5).
[FA89 Sch1 par1(1)
to (7)(d) and (8)
and par2; FA97
s146(2) and Sch7
PtII] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.18
1430 (3) The appropriate tax required to be included in a return shall
be due and payable at the time by which the return is to be made
and shall be paid by the collective investment undertaking to the
Collector-General, and the appropriate tax so due shall be payable
by the collective investment undertaking without the making of an
assessment; but the appropriate tax which has become so due may
be assessed on the collective investment undertaking (whether or not
it has been paid when the assessment is made) if that tax or any part
of it is not paid on or before the due date.
(4) Where it appears to the inspector that there is an amount of
appropriate tax which ought to have been and has not been included
in a return, or the inspector is dissatisfied with any return, he or she
may make an assessment on the collective investment undertaking
to the best of his or her judgment, and any amount of appropriate
tax due under an assessment made by virtue of this subparagraph
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 cor-
rect return had been made.
(5) Where any item has been incorrectly included in a return, 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) whether of the
collective investment undertaking or any other person are, in so far
as possible, the same as they would have been if the item had not
been so included.
(6) (a) Any appropriate tax assessed on a collective investment
undertaking under this Schedule shall be due within one
month after the issue of the notice of assessment (unless
that tax is due earlier undersubparagraph (3)) subject to
any appeal against the assessment, but no such appeal
shall affect the date when any amount is due undersub-
paragraph (3).
(b) On the determination of an appeal against an assessment
under this Schedule any appropriate tax overpaid shall
be repaid.
(7) (a) The provisions of the Income Tax Acts relating to—
(i) assessments to income tax,
(ii) appeals against such assessments (including the
rehearing of appeals and the statement of a case for
the opinion of the High Court), and
(iii) the collection and recovery of income tax,
shall, with any necessary modifications, apply to the
assessment, collection and recovery of appropriate tax.
(b) Any amount of appropriate tax payable in accordance
with this Schedule 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 amount
becomes due and payable until payment.
(c)Subsections (2)to(4)ofsection 1080shall apply in relation
to interest payable underclause (b)as they apply in
relation to interest payable undersection 1080.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.18 (d) In its application to any appropriate tax charged by an
assessment made in accordance with this Schedule,
section 1080shall apply as ifsubsection (1)(b)of that
section were deleted.
(8) Every return shall be in a form prescribed by the Revenue
Commissioners and shall include a declaration to the effect that the
return is correct and complete.
Statement to be given on making of relevant payment
2. Where a collective investment undertaking other than a speci-
fied collective investment undertaking makes a relevant payment
from which appropriate tax is deductible in accordance withsection
734(5), or would be so deductible but forparagraphs (i)and(ii)of
the definition of ‘‘appropriate tax’’ insection 734(1)(a), it shall give
to the unit holder to whom the relevant payment is made a statement
showing—
(a) the amount of the relevant payment,
(b) the amount equal to the aggregate of the appropriate tax
deducted from the relevant payment and any amount or
amounts deducted pursuant toparagraphs (i)and(ii)of
the definition of ‘‘appropriate tax’’ insection 734(1)(a)in
determining the appropriate tax or, if by reason of those
paragraphs there was no appropriate tax to deduct from
the amount of the relevant payment, the aggregate of the
amounts referred to in those paragraphs in so far as they
refer to the relevant payment,
(c) the net amount of the relevant payment,
(d) the date of the relevant payment, and
(e) such other information in relation to the relevant payment
as shall be necessary to enable the correct amount of tax,
if any, payable by or repayable to the unit holder in
respect of the relevant payment to be determined.
SCHEDULE 19
Offshore Funds: Distributing Funds
PART1
The Distribution Test
Requirements as to distributions
1. (1) For the purposes ofChapter 2ofPart 27, an offshore fund
pursues a full distribution policy with respect to an account period
if—
(a) a distribution is made for the account period or for some
other period which in whole or in part falls within that
account period,
(b) subject toPart 2of this Schedule, the amount of the distri-
bution which is paid to the holders of material and other
interests in the fund—
1431
Section 744.
[FA90 Sch5] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.19
1432 (i) represents at least 85 per cent of the income of the
fund for the period, and
(ii) is not less than 85 per cent of the fund’s Irish equiv-
alent profits for the period,
(c) the distribution is made during the account period or not
more than 6 months after the expiry of that period, and
(d) the form of the distribution is such that, if any sum forming
part of it were received in the State by a person resident
in the State and did not form part of the profits of a trade,
profession or vocation, that sum would be chargeable to
tax under Case III of Schedule D,
and any reference in this subparagraph to a distribution made for an
account period includes a reference to any 2 or more distributions
so made or, in the case ofclause (b), the aggregate of those dis-
tributions.
(2) Subject tosubparagraph (3), with respect to any account period
for which—
(a) there is no income of the fund, and
(b) there are no Irish equivalent profits of the fund,
the fund shall be treated as pursuing a full distribution policy not-
withstanding that no distribution is made as mentioned insubpara-
graph (1).
(3) For the purposes ofChapter 2ofPart 27, an offshore fund shall
be regarded as not pursuing a full distribution policy with respect to
an account period for which the fund does not make up accounts.
(4) For the purposes of this paragraph—
(a) where a period for which an offshore fund makes up
accounts includes the whole or part of 2 or more account
periods of the fund, then, subject toclause (c), income
shown in those accounts shall be apportioned between
those account periods on a time basis according to the
number of days in each account period comprised in the
period for which the accounts are made up,
(b) where a distribution is made for a period which includes the
whole or part of 2 or more account periods of the fund,
then, subject tosubparagraph (5), the distribution shall
be apportioned between those account periods on a time
basis according to the number of days in each account
period which are comprised in the period for which the
distribution is made,
(c) where a distribution is made out of specified income but
is not made for a specified period, that income shall be
attributed to the account period of the fund in which it
in fact arose and the distribution shall be treated as made
for that account period, and
(d) where a distribution is made neither for a specified period
nor out of specified income, then, subject tosubpara-
graph (5), the distribution shall be treated as made for

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.19 the last account period of the fund which ended before
the distribution was made.
(5) Where but for this subparagraph the amount of a distribution
made, or treated by virtue ofsubparagraph (4)as made, for an
account period would exceed the income of that period, then, for the
purposes of this paragraph—
(a) if the amount of the distribution was determined by
apportionment undersubparagraph (4)(b), the excess
shall be reapportioned, as may be just and reasonable, to
any other account period which, in whole or in part, falls
within the period for which the distribution was made
or, if there is more than one such period, between those
periods, and
(b) subject toclause (a), the excess shall be treated as an
additional distribution or series of additional distri-
butions made for preceding account periods in respect of
which the distributions or the aggregate distributions, as
the case may be, would otherwise be less than the income
of the period, applying the excess to later account periods
before earlier ones until it is exhausted.
(6) In any case where—
(a) for a period which is or includes an account period an off-
shore fund is subject to any restriction as regards the
making of distributions, being a restriction imposed by
the law of any territory, and
(b) the fund is subject to that restriction by reason of an excess
of losses over profits (applying the concept of ‘‘profits’’
and ‘‘losses’’ in the sense in which, and to the extent to
which, they are relevant for the purposes of the law in
question),
then, in determining for the purposes ofsubparagraphs (1)to(5)the
amount of the fund’s income for that account period, there shall be
allowed as a deduction any amount which apart from this subpara-
graph would form part of the income of the fund for that account
period and which may not be distributed by virtue of the restriction.
Funds operating equalisation arrangements
2. (1) In the case of an offshore fund which throughout any
account period operates equalisation arrangements, on any occasion
in that period when there is a disposal to which this subparagraph
applies, the fund shall be treated for the purposes of this Part of this
Schedule as making a distribution of an amount equal to so much of
the consideration for the disposal as, in accordance with this para-
graph, represents income accrued to the date of the disposal.
(2)Subparagraph (1)shall apply to a disposal which—
(a) is a disposal of a material interest in the offshore fund
concerned,
(b) is a disposal to whichChapter 2ofPart 27applies (whether
by virtue ofsubsection (3)ofsection 742or otherwise) or
is one to which that Chapter would apply ifsubsections
(5)and(6)of that section applied generally and not only
1433

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.19
1434 for the purpose of determining whether, by virtue ofsub-
section (3)of that section, there is a disposal to which
that Chapter applies,
(c) is not a disposal with respect to which the conditions insub-
section (4)ofsection 742are fulfilled, and
(d) is a disposal to the fund itself or to the persons concerned
in the management of the fund (in this paragraph
referred to as ‘‘the managers of the fund’’) in their
capacity as such.
(3) On a disposal to whichsubparagraph (1)applies, the part of
the consideration which represents income accrued to the date of the
disposal shall be, subject tosubparagraph (4)andparagraph 4(4),
the amount which would be credited to the equalisation account of
the offshore fund concerned in respect of accrued income if on the
date of the disposal the material interest disposed of were acquired
by another person by means of initial purchase.
(4) Where, after the beginning of the period by reference to which
the accrued income referred to insubparagraph (3)is calculated, the
material interest disposed of by a disposal to whichsubparagraph (1)
applies was acquired by means of initial purchase (whether or not by
the person making the disposal), then—
(a) the amount which on that acquisition was credited to the
equalisation account in respect of accrued income shall
be deducted from the amount which in accordance with
subparagraph (3)would represent income accrued to the
date of the disposal, and
(b) if in that period there has been more than one such acquis-
ition of that material interest by means of initial pur-
chase, the deduction to be made under this subparagraph
shall be the amount so credited to the equalisation
account on the latest such acquisition before the disposal
in question.
(5) Where by virtue of this paragraph an offshore fund is treated
for the purposes of this Part of this Schedule as making a distribution
on the occasion of a disposal, the distribution shall be treated for
those purposes as—
(a) complying withparagraph 1(1)(d),
(b) made out of the income of the fund for the account period
in which the disposal occurs, and
(c) paid immediately before the disposal to the person who was
then the holder of the interest disposed of.
(6) In any case where—
(a) a distribution in respect of an interest in an offshore fund is
made to the managers of the fund,
(b) their holding of that interest is in their capacity as such, and
(c) at the time of the distribution the fund is operating equalis-
ation arrangements,

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.19 then, the distribution shall not be taken into account for the purposes
ofparagraph 1(1)except to the extent that the distribution is prop-
erly referable to that part of the period for which the distribution is
made during which that interest has been held by the managers of
the fund in their capacity as such.
(7)Subsection (2)ofsection 742shall apply for the purposes of
this paragraph as it applies for the purposes of that section.
Income taxable under Case III of Schedule D
3. (1)Subparagraph (2)shall apply if any sums which form part of
the income of an offshore fund withinparagraph (b)or(c)ofsection
743(1)are of such a nature that—
(a) the holders of interests in the fund who are either companies
resident in the State or individuals domiciled and resident
in the State—
(i) are chargeable to tax under Case III of Schedule D
in respect of such of those sums as are referable to
their interests, or
(ii) if any of that income is derived from assets in the
State, would be so chargeable had the assets been
outside the State,
and
(b) the holders of interests, who are not such companies or indi-
viduals, would be chargeable as mentioned insubclause
(i)or(ii)ofclause (a)if they were resident in the State
or, in the case of individuals, if they were domiciled and
both resident and ordinarily resident in the State.
(2) To the extent that sums withinsubparagraph (1)do not actu-
ally form part of a distribution complying withclauses (c)and(d)of
paragraph 1(1), they shall be treated for the purposes of this Part of
this Schedule—
(a) as a distribution complying with those clauses and made out
of the income of which they form part, and
(b) as paid to the holders of the interests to which they are
referable.
Commodity income
4. (1) In this paragraph—
‘‘commodities’’ means tangible assets (other than currency, securi-
ties, debts or other assets of a financial nature) dealt with on a com-
modity exchange in any part of the world;
‘‘dealing’’, in relation to dealing in commodities, includes dealing by
means of futures contracts and traded options.
(2) To the extent that the income of an offshore fund for any
account period includes profits from dealing in commodities, 50 per
cent of those profits shall be disregarded in determining for the pur-
poses ofparagraphs 1(1)(b)and5—
(a) the income of the fund for that period, and
1435

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.19
1436 (b) the fund’s Irish equivalent profits for that period;
but in any account period in which an offshore fund incurs a loss in
dealing in commodities the amount of that loss shall not be varied
by virtue of this paragraph.
(3) Where the income of an offshore fund for any account period
consists of profits from dealing in commodities and other income,
then—
(a) in determining whether the condition inparagraph 1(1)(b)
is fulfilled with respect to that account period, the expen-
diture of the fund shall be apportioned in such manner
as is just and reasonable between the profits from dealing
in commodities and the other income, and
(b) in determining whether and to what extent any expenditure
is deductible undersection 83in computing the fund’s
Irish equivalent profits for that period, so much of the
business of the fund as does not consist of dealing in com-
modities shall be treated as a business carried on by a
separate company.
(4) Where there is a disposal to whichparagraph 2(1)applies, then,
to the extent that any amount which was or would be credited to the
equalisation account in respect of accrued income, as mentioned in
subparagraph (3)or(4)ofparagraph 2, represents profits from deal-
ing in commodities, 50 per cent of that accrued income shall be dis-
regarded in determining under those subparagraphs the part of the
consideration for the disposal which represents income accrued to
the date of the disposal.
Irish equivalent profits
5. (1) In this paragraph, ‘‘profits’’ does not include chargeable
gains.
(2) A reference in this Schedule to the Irish equivalent profits of
an offshore fund for an account period shall be construed as a refer-
ence to the amount which, on the assumptions insubparagraph (3),
would be the total profits of the fund for that period on which, after
allowing for any deductions available against those profits, corpor-
ation tax would be chargeable.
(3) The assumptions referred to insubparagraph (2)are that—
(a) the offshore fund is a company which in the account period
is resident in the State,
(b) the account period is an accounting period of that company,
and
(c) any dividends or distributions which by virtue ofsection 129
should be disregarded in computing income for corpor-
ation tax purposes are nevertheless to be taken into
account in that computation in the like manner as if they
were dividends or distributions of a company resident
outside the State.
(4) Without prejudice to any deductions available apart from this
subparagraph, the deductions referred to insubparagraph (2)
include—

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.19 (a) a deduction equal to any amount which by virtue ofpara-
graph 1(6)is allowed as a deduction in determining the
income of the fund for the account period in question,
(b) a deduction equal to any amount of Irish income tax paid
by deduction or otherwise by, and not repaid to, the off-
shore fund in respect of the income of the account period,
and
(c) a deduction equal to any amount of tax (paid under the law
of a territory outside the State) taken into account as a
deduction in determining the income of the fund for the
account period in question but which, because it is refer-
able to capital rather than income, is not to be taken into
account by virtue ofsection 71(1)or77(6);
butsection 2(4)shall be disregarded for the purposes ofclause (b).
(5) For the avoidance of doubt it is hereby declared that, if any
sums forming part of the offshore fund’s income for any period have
been received by the fund without any deduction of or charge to tax
by virtue ofsection 43,49,50or63, the effect of the assumption in
subparagraph (3)(a)is that those sums are to be taken into account
in determining the total profits referred to insubparagraph (2).
PART 2
Modifications of Conditions for Certification in Certain Cases
Exclusion of investments in distributing offshore funds
6. (1) In this Part of this Schedule, an offshore fund withinsubpar-
agraph (2)(c)is referred to as a ‘‘qualifying fund’’.
(2) In any case where—
(a) in an account period of an offshore fund (in this Part of this
Schedule referred to as ‘‘the primary fund’’), the assets
of the fund consist of or include interests in another off-
shore fund,
(b) those interests (together with other interests which the pri-
mary fund may have) are such that, by virtue ofpara-
graph (a)ofsubsection (3)ofsection 744or, if the other
fund concerned is a company,paragraph (b)or(c)of that
subsection, the primary fund could not apart from this
paragraph be certified as a distributing fund in respect of
the account period, and
(c) without regard to this paragraph, that other fund could be
certified as a distributing fund in respect of its account
period or, as the case may be, each of its account periods
which comprises the whole or any part of the account
period of the primary fund,
then, in determining whether insection 744(3)(other thanparagraph
(d)) anything prevents the primary fund being certified as mentioned
inclause (b), the interests of the primary fund in that other fund
shall be disregarded except for the purposes of determining the total
value of the assets of the primary fund.
(3) In a case withinsubparagraph (2)—
(a)section 744(3)(other thanparagraph (d)) shall apply in
relation to the primary fund with the modification in
1437

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.19
1438 paragraph 7(in addition to that provided for bysubpara-
graph (2)), and
(b)Part 1of this Schedule shall apply in relation to the primary
fund with the modification inparagraph 8.
7. The modification referred to inparagraph 6(3)(a)is that in any
case where—
(a) at any time in the account period referred to inparagraph
6(2), the assets of the primary fund include an interest in
an offshore fund or in any company (whether an offshore
fund or not),
(b) that interest is to be taken into account in determining
whether insection 744(3)(other thanparagraph (d)) any-
thing prevents the primary fund being certified as a distri-
buting fund in respect of that account period, and
(c) at any time in that account period the assets of the qualifying
fund include an interest in the offshore fund or company
referred to inclause (a),
then, for the purposes of the application in relation to the primary
fund ofsection 744(3)(other thanparagraph (d)), at any time when
the assets of the qualifying fund include the interest referred to in
clause (c), the primary fund’s share of that interest shall be treated
as an additional asset of the primary fund.
8. (1) The modification referred to inparagraph 6(3)(b)is that, in
determining whether the condition inparagraph 1(1)(b)(ii)is fulf-
illed with respect to the account period of the primary fund referred
to inparagraph 6(2), the Irish equivalent profits of the primary fund
for that account period shall be treated as increased by the primary
fund’s share of the excess income (if any) of the qualifying fund
which is attributable to that account period.
(2) For the purposes of this paragraph, the excess income of the
qualifying fund for any account period of that fund shall be the
amount (if any) by which its Irish equivalent profits for that account
period exceed the amount of the distributions made for that account
period, as determined for the purposes of the application ofpara-
graph 1(1)to the qualifying fund.
(3) Where an account period of the qualifying fund coincides with
an account period of the primary fund, the excess income (if any) of
the qualifying fund for that account period shall be the excess income
which is attributable to that account period of the primary fund.
(4) In a case wheresubparagraph (3)does not apply, the excess
income of the qualifying fund attributable to an account period of
the primary fund shall be the appropriate fraction of the excess
income (if any) of the qualifying fund for any of its account periods
which comprises the whole or any part of the account period of the
primary fund and, if there is more than one such account period of
the qualifying fund, the aggregate of the excess income (if any) of
each of them.
(5) For the purposes ofsubparagraph (4), the appropriate fraction
shall be determined by reference to the formula—

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.19 A
B
where—
A is the number of days in the account period of the primary fund
which are also days in an account period of the qualifying fund,
and
B is the number of days in that account period of the qualifying fund
or, as the case may be, in each of those account periods of that
fund which comprises the whole or any part of the account period
of the primary fund.
9. (1) The references inparagraphs 7and8(1)to the primary
fund’s share of—
(a) an interest forming part of the assets of the qualifying fund,
or
(b) the excess income (within the meaning ofparagraph 8)of
the qualifying fund,
shall be construed as references to the fraction specified insubpara-
graph (2)of that interest or excess income.
(2) In relation to any account period of the primary fund, the frac-
tion referred to insubparagraph (1)shall be determined by reference
to the formula—
C
D
where—
C is the average value of the primary fund’s holding of interests in
the qualifying fund during that account period, and
D is the average value of all the interests of the qualifying fund held
by any persons during that account period.
Offshore funds investing in trading companies
10. (1) In this paragraph—
‘‘commodities’’ has the same meaning as inparagraph 4(1);
‘‘dealing’’, in relation to commodities, currency, securities, debts or
other assets of a financial nature, includes dealing by means of
futures contracts and traded options;
‘‘trading company’’ means a company whose business consists wholly
of the carrying on of a trade or trades and does not to any extent
consist of—
(a) dealing in commodities, currency, securities, debts or other
assets of a financial nature, or
(b) banking or money-lending.
1439

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.19
1440 (2) In any case where the assets of an offshore fund for the time
being include an interest in a trading company,section 744(3)shall
apply subject to the modifications insubparagraphs (3)and(4).
(3) In the application ofsection 744(3)(b)to so much of the assets
of an offshore fund as for the time being consists of interests in a
single trading company, ‘‘20 per cent’’ shall be substituted for ‘‘10
per cent’’.
(4) In the application ofsection 730(3)(c)to an offshore fund, for
‘‘more than 10 per cent’’, in so far as it would otherwise refer to the
share capital of a trading company or to any class of such share capi-
tal, ‘‘50 per cent or more’’ shall be substituted.
Offshore funds with wholly-owned subsidiaries
11. (1) In relation to an offshore fund which has a wholly-owned
subsidiary which is a company,section 744(3)orPart 1of this Sched-
ule shall apply subject to the modifications insubparagraph (4).
(2) Subject tosubparagraph (3), for the purposes of this paragraph,
a company shall be a wholly-owned subsidiary of an offshore fund if
and so long as the whole of the issued share capital of the company
is—
(a) in the case of an offshore fund withinsection 743(1)(a),
directly and beneficially owned by the fund,
(b) in the case of an offshore fund withinsection 743(1)(b),
directly owned by the trustees of the fund for the benefit
of the fund, and
(c) in the case of an offshore fund withinsection 743(1)(c),
owned in a manner which as near as may be corresponds
either toclause (a)or(b).
(3) In the case of a company which has only one class of issued
share capital, the reference insubparagraph (2)to the whole of the
issued share capital shall be construed as a reference to at least 95
per cent of that share capital.
(4) The modifications referred to insubparagraph (1)are that for
the purposes ofsection 744(3)andPart 1of this Schedule—
(a) the percentage of the receipts, expenditure, assets and liab-
ilities of the subsidiary which is equal to the percentage
of the issued share capital of the company concerned
which is owned as mentioned insubparagraph (2)shall
be regarded as the receipts, expenditure, assets and liab-
ilities of the fund, and
(b) there shall be disregarded the interest of the fund in the
subsidiary and any distributions or other payments made
by the subsidiary to the fund or by the fund to the
subsidiary.
Offshore funds with interests in dealing and management companies
12. (1)Section 744(3)(c)shall not apply to so much of the assets
of an offshore fund as consists of issued share capital of a company
which is either—

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.19 (a) a wholly-owned subsidiary of the fund which is withinsub-
paragraph (2),or
(b) a subsidiary management company of the fund (within the
meaning ofsubparagraph (3)).
(2) A company which is a wholly-owned subsidiary of an offshore
fund shall be one to whichsubparagraph (1)(a)applies if—
(a) the business of the company consists wholly of dealing in
material interests in the offshore fund for the purposes
of and in connection with the management and admin-
istration of the business of the fund, and
(b) the company is not entitled to any distribution in respect
of any material interest for the time being held by the
company,
andparagraph 11(2)shall apply to determine whether a company is
for the purposes of this paragraph a wholly-owned subsidiary of an
offshore fund.
(3) A company (being a company in which an offshore fund has
an interest) shall be a subsidiary management company of the fund
for the purposes ofsubparagraph (1)(b)if—
(a) the company carries on no business other than providing
services withinsubparagraph (4)either for the fund alone
or for the fund and for any other offshore fund which has
an interest in the company, and
(b) the company’s remuneration for the services it provides to
the fund is not greater than it would be if it were deter-
mined at arm’s length between the fund and a company
in which the fund has no interest.
(4) The services referred to insubparagraph (3)are—
(a) holding property (being property of any description) occu-
pied or used in connection with the management or
administration of the fund, and
(b) providing administrative, management and advisory services
to the fund.
(5) In determining in accordance withsubparagraph (3)whether a
company in which an offshore fund has an interest is a subsidiary
management company of that fund—
(a) every business carried on by a wholly-owned subsidiary of
the company shall be treated as carried on by the
company,
(b) no account shall be taken of so much of the company’s busi-
ness as consists of holding its interests in a wholly-owned
subsidiary, and
(c) any reference insubparagraph (3)(b)to the company shall
be taken to include a reference to a wholly-owned sub-
sidiary of the company.
(6) A reference insubparagraph (5)to a wholly-owned subsidiary
of a company shall be construed as a reference to another company,
1441

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.19
1442 the whole of the issued share capital of which is for the time being
directly and beneficially owned by the first-mentioned company.
Disregarding of certain investments forming less than 5 per cent of a
fund
13. (1) In this paragraph, ‘‘excess holding’’ means any holding
withinsubparagraph (2).
(2) In any case where—
(a) in any account period of an offshore fund the assets of the
fund include a holding of issued share capital (or any
class of issued share capital) of a company, and
(b) that holding is such that by virtue ofsection 744(3)(c) the
fund could not (apart from this paragraph) be certified
as a distributing fund in respect of that account period,
then, if the condition insubparagraph (3)is fulfilled, that holding
shall be disregarded for the purposes ofsection 744(3)(c).
(3) The condition referred to insubparagraph (2)is that at no time
in the account period in question does that portion of the fund which
consists of—
(a) excess holdings, and
(b) interests in other offshore funds which are not qualifying
funds,
exceed 5 per cent by value of all the assets of the fund.
Power of Revenue Commissioners to disregard certain breaches of
conditions
14. Where in the case of any account period of an offshore fund it
appears to the Revenue Commissioners that there has been a failure
to comply with any of the conditions inparagraphs (a),(b)and(c)
ofsection 744(3)(as modified, where appropriate, by the preceding
provisions of this Part of this Schedule) but they are satisfied that
the failure—
(a) occurred inadvertently, and
(b) was remedied without unreasonable delay,
then, the Revenue Commissioners may disregard the failure for the
purposes of determining whether to certify the fund as a distributing
fund in respect of that account period.
PART 3
Certification Procedure
Application for certification
15. (1) The Revenue Commissioners shall, in such manner as they
consider appropriate, certify an offshore fund as a distributing fund
in respect of an account period if—

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.19 (a) an application in respect of that period is made under this
paragraph,
(b) the application is accompanied by the accounts of the fund
for, or for a period which includes, the account period to
which the application relates,
(c) such information as the Revenue Commissioners may
reasonably require for the purpose of determining
whether the fund should be so certified is furnished to
the Revenue Commissioners, and
(d) the Revenue Commissioners are satisfied that nothing in
subsection (2)or(3)ofsection 744prevents the fund
being so certified.
(2) An application under this paragraph shall be made to the Rev-
enue Commissioners by the fund or by a trustee or officer of the
fund on behalf of the fund and may be so made before the expiry of
the period of 6 months beginning at the end of the account period
to which the application relates.
(3) In any case where on an application under this paragraph the
Revenue Commissioners determine that the offshore fund concerned
should not be certified as a distributing fund in respect of the account
period to which the application relates, they shall give notice of that
determination to the fund.
(4) Where at any time it appears to the Revenue Commissioners
that—
(a) the accounts accompanying an application under this para-
graph in respect of any account period of an offshore
fund are not such, or
(b) any information furnished to them in connection with such
an application is not such,
as to make full and accurate disclosure of all facts and considerations
relevant to the application, the Revenue Commissioners shall give
notice to the fund accordingly, specifying the period concerned.
(5) Where a notice is given by the Revenue Commissioners under
subparagraph (4), they shall be deemed never to have certified the
offshore fund in respect of the account period in question.
Appeals
16. (1) An appeal to the Appeal Commissioners—
(a) against a determination referred to inparagraph 15(3),or
(b) against a notification underparagraph 15(4),
may be made by the offshore fund or by a trustee or officer of the
fund on behalf of the fund, and shall be so made by notice specifying
the grounds of appeal and given to the Revenue Commissioners
within 30 days of the date of the notice undersubparagraph (3)or
(4)ofparagraph 15as the case may be.
1443

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.19
1444 (2) The Appeal Commissioners shall hear and determine an
appeal undersubparagraph (1)in accordance with the principles to
be followed by the Revenue Commissioners in determining appli-
cations underparagraph 15and, subject to those principles, in the
like manner as in the case of an appeal to the Appeal Commissioners
against an assessment to income tax, and the provisions of the
Income Tax Acts relating to such an appeal (including the provisions
relating to the rehearing of an appeal and to the statement of a case
for the opinion of the High Court on a point of law) shall apply
accordingly with any necessary modifications.
(3) The jurisdiction of the Appeal Commissioners on an appeal
under this paragraph shall include jurisdiction to review any decision
of the Revenue Commissioners relevant to a ground of the appeal.
PART 4
Supplementary
Assessment: effect of non-certification
17. No appeal may be brought against an assessment to tax on the
ground that an offshore fund should have been certified as a distri-
buting fund in respect of an account period of the fund.
18. (1) Without prejudice toparagraph 17, in any case where no
application has been made underparagraph 15in respect of an
account period of an offshore fund, any person liable to pay tax
which that person would not be liable to pay if the offshore fund
were certified as a distributing fund in respect of that period may by
notice in writing require the Revenue Commissioners to take action
under this paragraph for the purposes of determining whether the
fund should be so certified.
(2) Subject tosubparagraphs (3)and(5), where the Revenue Com-
missioners receive a notice undersubparagraph (1)they shall by
notice, given in such manner as they consider appropriate in the cir-
cumstances, invite the offshore fund concerned to make an appli-
cation underparagraph 15in respect of the period in question.
(3) Wheresubparagraph (2)applies, the Revenue Commissioners
shall not be required to give notice under that subparagraph before
the expiry of the account period to which the notice is to relate nor
if an application underparagraph 15has already been made; but
where notice is given undersubparagraph (2), an application under
paragraph 15shall not be out of time underparagraph 15(2)if it is
made within 90 days of the date of that notice.
(4) Where an offshore fund to which notice is given undersubpara-
graph (2)does not make an application underparagraph 15in
respect of the account period in question within the time allowed by
subparagraph (3)orparagraph 15(2), as the case may be, the Rev-
enue Commissioners shall proceed to determine the question of cer-
tification in respect of that period as if such an application had been
made.
(5) Where the Revenue Commissioners receive more than one
notice undersubparagraph (1)with respect to the same account per-
iod of the same offshore fund, their obligations undersubparagraphs
(2)and(4)shall be taken to be fulfilled with respect to each of those
notices if they are fulfilled with respect to any of them.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.19 (6) Notwithstanding anything insubparagraph (5), for the purpose
of a determination undersubparagraph (4)with respect to an
account period of an offshore fund, the Revenue Commissioners
shall have regard to accounts and other information furnished by all
persons who have given notice undersubparagraph (1)with respect
to that account period, andparagraph 15shall apply as if accounts
and information so furnished had been furnished in compliance with
subparagraph (1)of that paragraph.
(7) Without prejudice tosubparagraph (5), in any case where—
(a) at a time after the Revenue Commissioners have made a
determination undersubparagraph (4)that an offshore
fund should not be certified as a distributing fund in
respect of an account period, notice is given undersubpa-
ragraph (1)with respect to that period, and
(b) the person giving that notice furnishes the Revenue Com-
missioners with accounts or information which had not
been furnished to them at the time of the earlier deter-
mination,
then, the Revenue Commissioners shall reconsider their previous
determination in the light of the new accounts or information and,
if they consider it appropriate, may determine to certify the fund
accordingly.
(8) Where any person has given notice to the Revenue Com-
missioners undersubparagraph (1)with respect to an account period
of an offshore fund and no application has been made underpara-
graph 15with respect to that period, then—
(a) the Revenue Commissioners shall notify that person of their
determination with respect to certification undersubpar-
agraph (4), and
(b)paragraph 16shall not apply in relation to that deter-
mination.
Information as to decisions on certification etc.
19. Any obligation on the Revenue Commissioners to maintain
secrecy or any other restriction upon the disclosure of information
by them shall not preclude them from disclosing to any person
appearing to them to have an interest in the matter—
(a) any determination of the Revenue Commissioners or (on
appeal) the Appeal Commissioners as to whether an off-
shore fund should or should not be certified as a distri-
buting fund in respect of any account period, or
(b) the content and effect of any notice given by the Revenue
Commissioners underparagraph 15(4).
20. The Revenue Commissioners may nominate any of their
officers to perform any acts and discharge any functions authorised
by this Schedule to be performed or discharged by the Revenue
Commissioners, and references in this Schedule to the Revenue
Commissioners shall, with any necessary modifications, be construed
as including references to an officer so nominated.
1445

[No.39.]Taxes Consolidation Act,1997. [1997.] Section 745.
[FA90 Sch6] 1446 SCHEDULE 20
Offshore Funds: Computation of Offshore Income Gains
PART1
Disposal of interests in non-qualifying funds
Interpretation
1. In this Part of this Schedule, ‘‘material disposal’’ means a dis-
posal to whichChapter 2ofPart 27applies otherwise than by virtue
ofsection 742.
Calculation of unindexed gain
2. (1) Where there is a material disposal, there shall first be deter-
mined for the purposes of this Part of this Schedule the amount (if
any) which in accordance with this paragraph is the unindexed gain
accruing to the person making the disposal.
(2) Subject tosubsections (2)to(6)ofsection 741andparagraph
3, the unindexed gain accruing on a material disposal shall be the
amount which would be the gain on that disposal for the purposes
of the Capital Gains Tax Acts if it were computed without regard
to—
(a) any charge to income tax or corporation tax by virtue of
section 745, and
(b) any adjustment (in this Part of this Schedule referred to as
‘‘the indexation allowance’’) made undersection 556(2)
to sums allowable as deductions in the computation of
chargeable gains.
3. (1) Where the material disposal forms part of a transfer to which
section 600applies, the unindexed gain accruing on the disposal shall
be computed without regard to any deduction to be made under that
section in computing a chargeable gain.
(2) Notwithstandingsections 538and546, where apart from this
subparagraph the effect of any computation under the preceding pro-
visions of this Part of this Schedule would be to produce a loss, the
unindexed gain on the material disposal shall be treated as nil, and
accordingly for the purposes of this Part of this Schedule no loss shall
be treated as accruing on a material disposal.
Gains since the 6th day of April, 1990
4. (1) This paragraph shall apply where—
(a) the interest in the offshore fund which is disposed of by the
person making a material disposal was acquired by that
person before the 6th day of April, 1990, or
(b) that person is treated by virtue of any provision ofsubparag-
raphs (3)and(4)as having acquired the interest before
that date.
(2) Where this paragraph applies, the amount which would have
been the gain on the material disposal shall be determined for the
purposes of this Part of this Schedule—

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.20 (a) on the assumption that on the 6th day of April, 1990, the
interest was disposed of and immediately reacquired for
a consideration equal to its market value at that time, and
(b) subject to that assumption, on the basis that the gain is com-
puted in the like manner as the unindexed gain on the
material disposal is determined underparagraphs 2
and3,
and that amount is inparagraph 5(2)referred to as ‘‘the gain since
the 6th day of April, 1990’’.
(3) Where the person making the material disposal acquired the
interest disposed of—
(a) on or after the 6th day of April, 1990, and
(b) in such circumstances that by virtue of any enactment other
thansection 556(4)that person and the person (in this
subparagraph andsubparagraph (4)referred to as ‘‘the
previous owner’’) from whom that person acquired the
interest disposed of were to be treated for the purposes
of the Capital Gains Tax Acts as if that person’s acquis-
ition were for a consideration of such an amount as would
secure that, on the disposal under which that person
acquired the interest disposed of, neither a gain or a loss
accrued to the previous owner,
then, the previous owner’s acquisition of the interest shall be treated
as that person’s acquisition of the interest.
(4) Where the previous owner acquired the interest disposed of—
(a) on or after the 6th day of April, 1990, and
(b) in circumstances similar to those referred to insubpara-
graph (3),
then, the acquisition of the interest by the predecessor of the pre-
vious owner shall be treated for the purposes of this paragraph as
the previous owner’s acquisition, and so on back through previous
acquisitions in similar circumstances until the first such acquisition
before the 6th day of April, 1990, or, as the case may be, until an
acquisition on a material disposal on or after that date.
The offshore income gain
5. (1) Subject tosubparagraph (2), a material disposal shall give
rise to an offshore income gain of an amount equal to the unindexed
gain on that disposal.
(2) In any case where—
(a)paragraph 4applies, and
(b) the gain since the 6th day of April, 1990 (within the meaning
ofparagraph 4(2)) is less than the unindexed gain on the
disposal,
the offshore income gain to which the disposal gives rise shall be an
amount equal to the income gain since the 6th day of April, 1990
(within the meaning of that paragraph).
1447

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.20
1448 PART 2
Disposals involving an equalisation element
6. (1) Subject toparagraph 7, a disposal to whichChapter 2ofPart
27applies by virtue ofsection 742(3)shall give rise to an offshore
income gain of an amount equal to the equalisation element relevant
to the asset disposed of.
(2) Subject tosubparagraphs (4)to(6), the equalisation element
relevant to the asset disposed of by a disposal withinsubparagraph
(1)shall be the amount which would be credited to the equalisation
account of the offshore fund concerned in respect of accrued income
if, on the date of the disposal, the asset disposed of were acquired
by another person by means of initial purchase.
(3) In the following provisions of this Part of this Schedule, a dis-
posal withinsubparagraph (1)is referred to as a ‘‘disposal involving
an equalisation element’’.
(4) Where the asset disposed of by a disposal involving an equalis-
ation element was acquired by the person making the disposal after
the beginning of the period by reference to which the accrued income
referred to insubparagraph (2)is calculated, the amount which apart
from this subparagraph would be the equalisation element relevant
to that asset shall be reduced by the following amount, that is—
(a) if that acquisition took place on or after the 6th day of April,
1990, the amount which on that acquisition was credited
to the equalisation account of the offshore fund con-
cerned in respect of accrued income or, as the case may
be, would have been so credited if that acquisition had
been an acquisition by means of initial purchase, and
(b) in any other case, the amount which would have been cred-
ited to that account in respect of accrued income if that
acquisition had been an acquisition by means of initial
purchase taking place on the 6th day of April, 1990.
(5) In any case where—
(a) the asset disposed of by a disposal involving an equalisation
element was acquired by the person making the disposal
at or before the beginning of the period by reference to
which the accrued income referred to insubparagraph (2)
is calculated, and
(b) that period began before the 6th day of April, 1990, and
ends after that date,
the amount which apart from this subparagraph would be the equal-
isation element relevant to that asset shall be reduced by the amount
which would have been credited to the equalisation account of the
offshore fund concerned in respect of accrued income if the acquis-
ition referred to inclause (a)had been an acquisition by means of
initial purchase taking place on the 6th day of April, 1990.
(6) Where there is a disposal involving an equalisation element,
then, to the extent that any amount which was or would be credited
to the equalisation account of the offshore fund in respect of accrued
income (as mentioned insubparagraph (2),(3),(4)or(5)) represents
profits from dealing in commodities (within the meaning ofpara-
graph 4ofSchedule 19), 50 per cent of that accrued income shall be

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.20 disregarded in determining under those subparagraphs the equalis-
ation element relevant to the asset disposed of by that disposal.
7. (1) For the purposes of this Part of this Schedule, the Part 1
gain (if any) on any disposal involving an equalisation element shall
be determined in accordance withparagraph 8.
(2) Notwithstanding anything inparagraph 6—
(a) where there is no Part 1 gain on a disposal involving an
equalisation element, that disposal shall not give rise to
an offshore income gain, and
(b) where apart from this paragraph the offshore income gain
on a disposal involving an equalisation element would
exceed the Part 1 gain on that disposal, the offshore
income gain to which that disposal gives rise shall be
reduced to an amount equal to that Part 1 gain.
8. (1) On a disposal involving an equalisation element, the Part 1
gain shall be the amount (if any) which, by virtue ofPart 1of this
Schedule (as modified bysubparagraphs (2)and(3)), would be the
offshore income gain on that disposal if it were a material disposal
within the meaning of that Part.
(2) For the purposes only of the application ofPart 1of this Sched-
ule to determine the Part 1 gain (if any) on a disposal involving an
equalisation element,subsections (5)and(6)ofsection 742shall
apply as if insubsection (5)of that section ‘‘by virtue ofsubsection
(3)’’ were deleted.
(3) Where a disposal involving an equalisation element is one
which by virtue of any enactment other thansection 556(4)is treated
for the purposes of the Capital Gains Tax Acts as one on which
neither a gain nor a loss accrues to the person making the disposal,
then, for the purpose only of determining the Part 1 gain (if any) on
the disposal, that enactment shall be deemed not to apply to such a
disposal (but without prejudice to the application of that enactment
to any earlier disposal).
SCHEDULE 21
Purchase and Sale of Securities: Appropriate Amount in
Respect of the Interest
1. For the purposes ofsection 749, the appropriate amount in
respect of the interest shall be the appropriate proportion of the net
interest receivable by the first buyer.
2. For the purposes ofsections 750and751, the appropriate
amount in respect of the interest shall be the gross amount corre-
sponding to the appropriate proportion of the net interest receivable
by the first buyer.
3. (1) For the purposes ofparagraphs 1and2, the appropriate
proportion shall be the proportion which—
(a) the period beginning on the first relevant date and ending
on the day before the day on which the first buyer bought
the securities,
1449
Sections 749, 750
and751.
[ITA67 Sch11;
F(MP)A68 s3(2)
and Sch PtI] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.21
1450 bears to—
(b) the period beginning on the first relevant date and ending
on the day before the second relevant date.
(2) Insubparagraph (1)—
‘‘the first relevant date’’ means—
(a) in a case where the securities have not been quoted in the
official list of the Dublin Stock Exchange at a price
excluding the value of the interest payment last payable
before the interest receivable by the first buyer or, the
securities having been so quoted, the date of the quo-
tation was not the earliest date on which they could have
been so quoted if an appropriate dealing in the securities
had taken place, that earliest date, and
(b) in any other case, the date on which the securities have been
first so quoted;
‘‘the second relevant date’’ means—
(a) in a case where the securities have not been quoted in the
official list of the Dublin Stock Exchange at a price
excluding the value of the interest receivable by the first
buyer or, the securities having been so quoted, the date
of the quotation was not the earliest date on which they
could have been so quoted if an appropriate dealing in
the securities had taken place, that earliest date, and
(b) in any other case, the date on which the securities have been
first so quoted.
(3) Where the interest receivable by the first buyer was the first
interest payment payable in respect of the securities,subparagraph
(1)shall apply with the substitution for the references to the first
relevant date of references to the beginning of the period (in this
subparagraph referred to as ‘‘the relevant period’’) for which the
interest was payable; but where the capital amount of the securities
was not fully paid at the beginning of the relevant period and one or
more instalments of capital were paid during the relevant period,
then—
(a) the interest shall be treated as divided into parts, calculated
by reference to the amount of the interest attributable to
the capital paid at or before the beginning of the relevant
period and the amount of that interest attributable to
each such instalment,
(b) treating each of those parts as interest payable for the rel-
evant period or, where the part was calculated by refer-
ence to any such instalment, as interest payable for the
part of the relevant period beginning with the payment of
the instalment, the amount constituting the appropriate
proportion of each part shall be calculated in accordance
with the preceding provisions of this paragraph, and
(c) the appropriate proportion of the interest for the purposes
ofparagraphs 1and2shall be the proportion of the
interest constituted by the sum of those amounts.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.21 (4) In relation to securities not the subject of quotations in the
official list of the Dublin Stock Exchange,subparagraph (1)shall
apply with the substitution for the periods mentioned in that subpar-
agraph of such periods as in the opinion of the Appeal Com-
missioners correspond with those in the case of the securities in
question.
4. Where the securities are of a description such that the bargain
price is increased, where interest is receivable by the buyer, by refer-
ence to gross interest accruing before the bargain date,paragraphs 1
to3shall not apply; but for the purposes ofsections 749to751the
appropriate amount in respect of the interest shall be the amount of
the increase in the bargain price.
SCHEDULE 22
Dividends Regarded as Paid Out of Profits Accumulated
Before Given Date
1. (1) Subject toparagraph 2, a dividend shall be regarded for the
purposes ofsection 752and of this Schedule as paid wholly out of
profits accumulated before a given date (in this Schedule referred to
as ‘‘the relevant date’’) if—
(a) it is declared for a period falling wholly before the relevant
date,
(b) there are no profits of the company arising in the period
beginning on the relevant date and ending on the date on
which the dividend is payable, or
(c) having regard toparagraph 3, no part is available for pay-
ment of the dividend out of such profits of the company
as arose in the period beginning on the relevant date and
ending on the date on which the dividend is payable.
(2) Subject toparagraph 2, where out of such profits of the com-
pany as arose in the period beginning on the relevant date and end-
ing on the date on which the dividend is payable, some part is, having
regard toparagraph 3, available for payment of the dividend but the
total amount distributed in payment of the net dividend on all the
shares of the class in question exceeds that part of the profits, the
dividend shall be regarded for the purposes ofsection 752and of this
Schedule as paid out of profits accumulated before the relevant date
to an extent which is the same as the proportion which the excess
bears to that total amount.
(3) For the purposes of this Schedule, a dividend which is declared
for a period falling partly before and partly after the relevant date
shall be regarded as consisting of 2 dividends respectively declared
for the 2 parts of the period and of amounts proportionate to each
such part.
2. (1) Notwithstandingparagraph 1, a dividend shall not be
regarded as paid to any extent out of profits accumulated before the
relevant date if—
(a) it became payable within one year from that date, and
(b) in the opinion of the Appeal Commissioners the annual rate
of dividend on the shares in question in that year—
1451
Sections 749and
752] [ITA67 Sch12;
F(MP)A68 s3(2)
and Sch PtI; CTA76
s140(1) and Sch2
PtI par28; FA79
s34] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.22
1452 (i) is not substantially greater than the annual rate of
dividend on those shares in the period of 3 years
ending on the relevant date, or
(ii) in a case where the shares in question were acquired
in the ordinary course of a business of arranging
public issues and placings of shares, represents a
yield on the cost to the person receiving the dividend
not substantially greater than the yield obtainable by
investing in comparable shares the prices of which
are quoted on stock exchanges in the State.
(2) For the purposes ofsubparagraph (1)(b), the Appeal Com-
missioners shall have regard to—
(a) all dividends paid on the shares in the respective periods,
(b) any share issue made in those periods to holders of the
shares, and
(c) in a case undersubparagraph (1)(b)(i)where the shares
were not in existence 3 years before the relevant date,
the dividends paid on, and any share issue made to hold-
ers of, any shares surrendered in exchange for the first-
mentioned shares or in right of which the first-mentioned
shares were acquired,
and shall take such averages and make such adjustments as may
appear to them to be required for a fair comparison.
3. (1) The part of the profits of the company arising in the period
beginning on the relevant date and ending on the date on which a
dividend is payable which is available for payment of the dividend
shall be determined in accordance withsubparagraphs(2) to(5).
(2) There shall be deducted from those profits such amount,
whether fixed or proportionate to the amount of the profits, as in the
opinion of the Appeal Commissioners ought justly and reasonably to
be treated as set aside for payment of dividends on any other class
of shares in the company, having regard to the respective rights
attaching to the shares and on the assumption that the total amount
available for distribution by means of net dividend on all the shares
in the company over any period will be proportionately greater or
less than the profits of the company arising in the period beginning
on the relevant date and ending on the date on which the dividend
mentioned insubparagraph (1)is payable, according as the first-men-
tioned period is longer or shorter than the second-mentioned period.
(3) In a case where, in the period beginning on the relevant date
and ending on the date on which the dividend is payable, no previous
dividend became payable on the shares of the class in question, the
whole of the profits of the company arising in the period, less any
deduction to be made undersubparagraph (2), shall be regarded as
available for payment of the dividend.
(4) If any previous dividend became payable on the same shares
in the period beginning on the relevant date and ending on the date
on which the dividend is payable, there shall be determined in
accordance with the preceding paragraphs the extent, if any, to which
that previous dividend is to be regarded as paid out of profits
accumulated before the relevant date, and the profits of the company
arising in that period, less any deduction to be made undersubpara-
graph (2), shall be regarded as primarily available for payment of the

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.22 net amount of that previous dividend in so far as it is not regarded
as paid out of profits accumulated before the relevant date and only
such balance, if any, as remains shall be regarded as available for
payment of the later dividend.
(5) Where undersubparagraph (2)the Appeal Commissioners are
to determine what should be set aside for payment of dividends on
shares of any class, and dividends on shares of that class have been
treated under this Schedule as paid to any extent out of profits
accumulated before the relevant date, the Appeal Commissioners
may take that fact into account and reduce the amount to be so set
aside accordingly.
4. (1) For the purposes of this Schedule, the profits of a company
arising in a given period (in this paragraph referred to as ‘‘the speci-
fied period’’) shall be determined in accordance withsubparagraphs
(2)and(3).
(2) Those profits shall be the income of the company for the speci-
fied period diminished by—
(a) the income tax actually paid by the company for any year
of assessment (not being a year of assessment after the
year 1975-76) in the specified period, including any sur-
tax borne by the company under section 530 of, and
Schedule 16 to, the Income Tax Act, 1967,
(b) the corporation profits tax payable by the company for any
accounting period in the specified period,
(c) the corporation tax (including corporation tax charged by
virtue ofsections 440and441) payable by the company
for any accounting period in the specified period, and for
this purpose the tax credit comprised in any franked
investment income shall be treated as corporation tax
payable by the company for the accounting period in
which the distribution was received, and
(d) the capital gains tax payable by the company for any year
of assessment (not being a year of assessment after the
year 1975-76) in the specified period;
but where relief has been afforded to the company under section 360
of the Income Tax Act, 1967, or undersection 826or833, references
in this subparagraph to tax actually borne or to tax payable shall be
construed as references to the tax which would have been borne or
payable if that relief had not been given.
(3) In ascertaining for the purposes of this paragraph the amount
of income tax, corporation profits tax and corporation tax by which
the income of the company for the specified period is to be dimin-
ished, any tax on the amount to be deducted underclause (g)or(h)
ofparagraph 5(3)shall be disregarded.
5. (1) For the purposes of this Schedule, the income of the com-
pany for a given period (in this paragraph referred to as ‘‘the speci-
fied period’’) shall be determined in accordance withsubparagraphs
(2)and(3).
(2) There shall be computed the aggregate amount of—
1453

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.22
1454 (a) any profits or gains arising in the specified period from any
trade carried on by the company computed in accordance
with the provisions applicable to Case I of Schedule D,
(b) any income (including any franked investment income) aris-
ing in the specified period (computed in accordance with
the Income Tax Acts or, in the case of franked invest-
ment income, in accordance with the Corporation Tax
Acts), other than profits or gains arising from any trade
referred to inclause (a), and
(c) any capital profits arising in the specified period (whether
or not chargeable to capital gains tax or corporation tax).
(3) There shall be deducted from the aggregate amount deter-
mined undersubparagraph (2)the sum of the following amounts—
(a) any loss sustained by the company in the specified period in
any trade referred to insubparagraph (2)(a)(computed
in the same manner as profits or gains under the pro-
visions applicable to Case I of Schedule D),
(b) any group relief given to the company in accordance with
Chapter 5ofPart 12for any accounting period in the
specified period,
(c) any allowances for any year of assessment (not being a year
of assessment after the year 1975-76) in the specified per-
iod in respect of any such trade under sections 241, 244(3)
and 245, Chapter III of Part XIV, and Parts XV and XVI,
of the Income Tax Act, 1967,
(d) any allowances in respect of any such trade under Chapter
III of Part XIV of the Income Tax Act, 1967, which under
section 14 of the Corporation Tax Act, 1976, were to be
made in taxing the trade for the purposes of corporation
tax for any accounting period in the specified period,
(e) any allowances in respect of any such trade underPart 9,
section 670,Chapter 1ofPart 29orsubsection (1)or(2)
ofsection 765, which undersection 307are to be made in
taxing the trade for the purpose of corporation tax for
any accounting period in the specified period,
(f) (i) any payments made by the company in the specified
period to whichsection 237or238applies, other than
payments which are deductible in computing the
profits or gains or losses of a trade carried on by the
company,
(ii) any amount in respect of which repayment was made
under section 496 of the Income Tax Act, 1967, for
any year of assessment in the specified period, and
(iii) any charges on income which undersection 243(2)are
to be allowed as deductions against the total profits
for any accounting period in the specified period,
(g) if the company is not engaged in carrying on a trade men-
tioned insection 752(3)and has received in the period—
(i) on or before the 5th day of April, 1976, a dividend
which if the company had been engaged in such a

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.22 trade would have been required by section 371(1) of
the Income Tax Act, 1967, to be taken into account
to any extent mentioned in that section, such amount
as would, after deduction of income tax at the rate
authorised by section 456 of that Act, be equal to
the amount which would have been so required to
be taken into account,
(ii) after the 5th day of April, 1976, a distribution within
the meaning ofChapter 2ofPart 6which if the com-
pany had been engaged in such a trade would have
been required bysection 752(3)to be taken into
account to any extent mentioned in that section, an
amount equal to so much of the distribution as would
be so required to be taken into account increased by
so much of the tax credit in respect of that distri-
bution as bears to the amount of such tax credit the
same proportion as the part of the distribution which
would be so required to be taken into account bears
to the distribution, and
(h) if the company is not engaged in carrying on a trade men-
tioned insection 752(3), but were it so engaged any
reduction undersection 749would, or would but for
section 749(3), be made as respects the price paid by the
company for securities (within the meaning of that
section) bought by it in the period—
(i) on or before the 5th day of April, 1976, such amount
as would, after deduction of income tax at the rate
applicable to the payment, be equal to the amount
of the reduction, or
(ii) after the 5th day of April, 1976, such amount as would
be equal to an amount of gross interest correspond-
ing to an amount of net interest equal to the amount
of the reduction,
so however that where the securities are of the descrip-
tion specified inparagraph 4ofSchedule 21, the amount
shall be the amount of the reduction,
and the balance shall be the income of the company for the specified
period.
6. Any reference inparagraph 4or5to an amount for a year of
assessment in the period in question shall be taken as a reference to
the full amount for any year of assessment falling wholly within that
period and a proportionate part of the amount (on a time basis)
for any year of assessment falling partly within that period, and the
references in those paragraphs to an amount for an accounting per-
iod in that period shall be construed in a corresponding manner.
SCHEDULE 23
Occupational Pension Schemes
PART 1
General
Application for approval of a scheme
1. An application for the approval for the purposes ofChapter 1
ofPart 30(in this Schedule referred to as ‘‘Chapter 1’’) of any retire-
ment benefits scheme shall be made in writing by the administrator
1455
Section 770.
[FA72 Sch1 PtI
pars1 to 3(3), 4 and
5 and PtVI pars 1
to 4; FA96 s132(1)
and Sch5 PtI par6] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.23
1456 of the scheme to the Revenue Commissioners before the end of the
first year of assessment for which approval is required, and shall be
supported by—
(a) a copy of the instrument or other document constituting the
scheme,
(b) a copy of the rules of the scheme and, except where the
application is being made on the setting up of the scheme,
a copy of the accounts of the scheme for the last year for
which such accounts have been made up, and
(c) such other information and particulars (including copies of
any actuarial report or advice given to the administrator
or employer in connection with the setting up of the
scheme) as the Revenue Commissioners may consider
relevant.
Information about payments under approved schemes
2. In the case of every approved scheme, the administrator of the
scheme and every employer who pays contributions under the
scheme shall, within 30 days from the date of the notice from the
inspector requiring them so to do—
(a) furnish to the inspector a return containing such particulars
of contributions paid under the scheme as the notice may
require;
(b) prepare and deliver to the inspector a return containing par-
ticulars of all payments under the scheme, being—
(i) payments by means of the return of contributions
(including interest on contributions, if any),
(ii) payments by means of the commutation of, or in place
of, pensions or other lump sum payments, and
(iii) other payments made to an employer;
(c) furnish to the inspector a copy of the accounts of the scheme
to the last date previous to the notice to which such
accounts have been made up, together with such other
information and particulars (including copies of any actu-
arial report or advice given to the administrator or
employer in connection with the conduct of the scheme in
the period to which the accounts relate) as the inspector
considers relevant.
Information about schemes other than approved schemes or statutory
schemes
3. (1) This paragraph shall apply as respects a retirement benefits
scheme which is neither an approved scheme nor a statutory scheme.
(2) It shall be the duty of every employer—
(a) if there subsists in relation to any of that employer’s
employees any such scheme, to deliver particulars of that
scheme to the inspector within 3 months beginning on the
date on which the scheme first comes into operation in
relation to any of that employer’s employees, and

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.23 (b) when required to do so by notice given by the inspector to
furnish within the time limited by the notice such particu-
lars as the inspector may require with regard to—
(i) any retirement benefits scheme relating to the
employer, or
(ii) the employees of that employer to whom any such
scheme relates.
(3) It shall be the duty of the administrator of any such scheme,
when required to do so by notice given by the inspector, to furnish
within the time limited by the notice such particulars as the inspector
may require with regard to the scheme.
Responsibility of administrator of a scheme
4. (1) Where the administrator of a retirement benefits scheme
defaults, cannot be traced or dies, the employer shall be responsible
in place of the administrator for the discharge of all duties imposed
on the administrator underChapter 1and this Schedule and shall
be liable for any tax due from the administrator in the capacity as
administrator.
(2) No liability incurred underChapter 1or this Schedule by the
administrator of a scheme, or by an employer, shall be affected by
the termination of the scheme or by its ceasing to be an approved
scheme or an exempt approved scheme, or by the termination of the
appointment of the person mentioned insection 772(2)(c).
(3) References in this paragraph to the employer include, where
the employer is resident outside the State, references to any factor,
agent, receiver, branch or manager of the employer in the State.
Regulations
5. (1) The Revenue Commissioners may make regulations gener-
ally for the purpose of carryingChapter 1and this Schedule into
effect.
(2) Every regulation made under this paragraph shall be laid
before Da´
il E´
ireann as soon as may be after it is made and, if a
resolution annulling the regulation is passed by Da´
il E´
ireann within
the next 21 days on which Da´
il E´
ireann has sat after the regulation
is laid before it, the regulation shall be annulled accordingly, but
without prejudice to the validity of anything previously done
thereunder.
PART 2
Charge to tax in respect of unauthorised and certain other pay-
ments
6. This Part shall apply to any payment to or for the benefit of an
employee, otherwise than in course of payment of a pension, being
a payment made out of funds which are or have been held for the
purposes of a scheme which is or has at any time been approved for
the purposes ofChapter 1.
7. Where the payment—
(a) is not expressly authorised by the rules of the scheme, or
1457

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.23
Sections 826and
833.
[ITA67 Sch10;
F(MP)A68 s3(2)
and Sch PtI;
F(No.2)A70 s1(c);
FA74 s86 and Sch2
PtI; CTA76 s23(2)
to (4) and s166 and
Sch4 PtsI and II;
FA95 s60] 1458 (b) is made at a time when the scheme is not approved for the
purposes ofChapter 1and would not have been expressly
authorised by the rules of the scheme when it was last so
approved,
the employee (whether or not he or she is the recipient of the
payment) shall be chargeable to tax on the amount of the payment
under Schedule E for the year of assessment in which the payment
is made.
8. Any payment chargeable to tax under this Part shall not be
chargeable to tax undersection 780or781.
9. References in this Part to any payment include references to
any transfer of assets or other transfer of money’s worth.
SCHEDULE 24
Relief from Income Tax and Corporation Tax by Means of
Credit in Respect of Foreign Tax
Interpretation
1. (1) In this Schedule, except where the context otherwise
requires—
‘‘arrangements’’ means arrangements for the time being in force by
virtue ofsection 826or section 12 of the Finance Act, 1950;
‘‘the Irish taxes’’ means income tax and corporation tax;
‘‘foreign tax’’, in relation to any territory in relation to which
arrangements have the force of law, means any tax chargeable under
the laws of that territory for which credit may be allowed under the
arrangements.
(2) Any reference in this Schedule to foreign tax shall be con-
strued, in relation to credit to be allowed under any arrangements,
as a reference only to tax chargeable under the laws of the territory
in relation to which the arrangements are made.
General
2. (1) Subject to this Schedule, where under the arrangements cre-
dit is to be allowed against any of the Irish taxes chargeable in
respect of any income, the amount of the Irish taxes so chargeable
shall be reduced by the amount of the credit.
(2) In the case of any income within the charge to corporation tax,
the credit shall be applied in reducing the corporation tax chargeable
in respect of that income.
(3) Nothing in this paragraph shall authorise the allowance of cre-
dit against any Irish tax against which credit is not allowable under
the arrangements.
Requirements as to residence
3. Credit shall not be allowed against income tax for any year of
assessment or corporation tax for any accounting period unless the
person in respect of whose income the tax is chargeable is resident
in the State for that year or accounting period.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.24 Limit on total credit — corporation tax
4. (1) The amount of the credit to be allowed against corporation
tax for foreign tax in respect of any income shall not exceed the
corporation tax attributable to that income.
(2) For the purposes of this paragraph, the corporation tax attribu-
table to any income or gain (in this subparagraph referred to as ‘‘that
income’’ or ‘‘that gain’’, as the case may be) of a company shall,
subject tosubparagraphs (3)to(5), be the corporation tax attribu-
table to so much (in this paragraph referred to as ‘‘the relevant
income’’ or ‘‘the relevant gain’’, as the case may be) of the income
or chargeable gains of the company computed in accordance with
the Tax Acts and the Capital Gains Tax Acts, as is attributable to
that income or that gain, as the case may be.
(3) For the purposes ofsubparagraph (2), the relevant income of
a company attributable to an amount receivable from the sale of
goods (within the meaning ofsection 449) shall be the sum which
would for the purposes of that section be taken to be the amount of
the income of the company referable to the amount so receivable.
(4) Subject tosubparagraph (5), the amount of corporation tax
attributable to the relevant income or gain shall be treated as equal
to such proportion of the amount of that income or gain as corre-
sponds to the rate of corporation tax payable by the company (before
any credit for double taxation relief) on its income or chargeable
gains for the accounting period in which the income arises or the gain
accrues (in this paragraph referred to as ‘‘the relevant accounting
period’’); but, where the corporation tax payable by the company for
the relevant accounting period on the relevant income or gain is
reduced by virtue of—
(a)section 448by any fraction, the rate of corporation tax pay-
able by the company on its income and chargeable gains
for the relevant accounting period shall be treated as
reduced by that fraction,
(b)section 713(3)or738(2), the rate of corporation tax payable
by the company on its income and chargeable gains for
the relevant accounting period shall be treated as the
standard rate of income tax by reference to which the
corporation tax so payable is reduced, and
(c)section 723(6), the rate of corporation tax payable by the
company on its income and chargeable gains for the rel-
evant accounting period shall be treated as 10 per cent,
for the purposes of computing the corporation tax attributable to
that relevant income or gain, as the case may be.
(5) Where in the relevant accounting period there is any deduction
to be made for charges on income, expenses of management or other
amounts which can be deducted from or set off against or treated as
reducing profits of more than one description—
(a) the company shall for the purposes of this paragraph and
sections 449and450allocate every such deduction in such
amounts and to such of its profits for that period as it
thinks fit, and
(b) (i) the amount of the relevant income or gain shall be
treated for the purposes ofsubparagraph (4),
1459

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.24
1460 (ii) the amount of any income of a company treated for
the purposes ofsection 449as referable to an amount
receivable from the sale of goods (within the mean-
ing of that section) shall be treated for the purposes
of that section, and
(iii) the amount of the income of a company treated for
the purposes ofsection 450as attributable to relevant
payments (within the meaning of that section) shall
be treated for the purposes of that section,
as reduced or, as the case may be, extinguished by so
much (if any) of the deduction as is allocated to it.
Limit on total credit — income tax
5. (1) The amount of the credit to be allowed against income tax
for foreign tax in respect of any income shall not exceed the sum
which would be produced by computing the amount of that income
in accordance with the Income Tax Acts, and then charging it to
income tax for the year of assessment for which the credit is to be
allowed, but at a rate (in this paragraph referred to as ‘‘the specified
rate’’) ascertained by dividing the income tax payable by that person
for that year by the amount of the total income of that person for
that year.
(2) For the purpose of determining the specified rate, the tax pay-
able by any person for any year shall be computed without any
reduction of that tax for any credit allowed or to be allowed under
any arrangements having effect by virtue ofsection 826but shall be
deemed to be reduced by any tax which the person in question is
entitled to charge against any other person, and the total income of
any person shall be deemed to be reduced by the amount of any
income the income tax on which that person is entitled to charge as
against any other person.
(3) Where credit for foreign tax is to be allowed in respect of any
income and any relief would but for this subparagraph be allowed
in respect of that income undersection 830, that relief shall not be
allowed.
6. Without prejudice toparagraph 5, the total credit to be allowed
to a person against income tax for any year of assessment shall not
exceed the total income tax payable by the person in question for
that year of assessment, less any tax which that person is entitled to
charge against any other person.
Effect on computation of income of allowance of credit
7. (1) Where credit for foreign tax is to be allowed against any of
the Irish taxes in respect of any income, this paragraph shall apply
in relation to the computation for the purposes of income tax or
corporation tax of the amount of that income.
(2) Where the income tax or corporation tax payable depends on
the amount received in the State, that amount shall be treated as
increased by the amount of the credit allowable against income tax
or corporation tax, as the case may be.
(3) Wheresubparagraph (2)does not apply—
(a) no deduction shall be made for foreign tax (whether in
respect of the same or any other income), and

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.24 (b) where the income includes a dividend and under the
arrangements foreign tax not chargeable directly or by
deduction in respect of the dividend is to be taken into
account in considering whether any, and if so what, credit
is to be allowed against the Irish taxes in respect of the
dividend, the amount of the income shall be treated as
increased by the amount of the foreign tax not so charge-
able which is to be taken into account in computing the
amount of the credit, but
(c) notwithstanding anything inclauses (a)and(b), where any
part of the foreign tax in respect of the income (including
any foreign tax which underclause (b)is to be treated as
increasing the amount of the income) cannot be allowed
as a credit against any of the Irish taxes, the amount of
the income shall be treated as reduced by that part of
that foreign tax.
(4) In relation to the computation of the total income of a person
for the purpose of determining the rate mentioned inparagraph 5,
subparagraphs (1)to(3)shall apply subject to the following modi-
fications:
(a) for the reference insubparagraph (2)to the amount of the
credit allowable against income tax there shall be substi-
tuted a reference to the amount of the foreign tax in
respect of the income (in the case of a dividend, foreign
tax not chargeable directly or by deduction in respect of
the dividend being disregarded), and
(b)clauses (b)and(c)ofsubparagraph (3)shall not apply,
and, subject to those modifications, shall apply in relation to all
income in the case of which credit is to be allowed for foreign tax
under any arrangements.
Special provisions as to dividends
8. (1) For the purposes of this paragraph, the relevant profits shall
be—
(a) if the dividend is paid for a specified period, the profits of
that period,
(b) if the dividend is not paid for a specified period but is paid
out of specified profits, those profits, or
(c) if the dividend is paid neither for a specified period nor out
of specified profits, the profits of the last period for which
accounts of the body corporate were made up which
ended before the dividend became payable;
but if, in a case withinclause (a)or(c), the total dividend exceeds the
profits available for distribution of the period mentioned inclause (a)
or(c), as the case may be, the relevant profits shall be the profits of
that period together with so much of the profits available for distri-
bution of preceding periods (other than profits previously distributed
or previously treated as relevant for the purposes of this paragraph)
as is equal to the excess, and for this purpose the profits of the most
recent preceding period shall first be taken into account, then the
profits of the next most recent preceding period, and so on.
1461

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.24
1462 (2) Where, in the case of any dividend, foreign tax not chargeable
directly or by deduction in respect of the dividend is under the
arrangements to be taken into account in considering whether any,
and if so what, credit is to be allowed against the Irish taxes in respect
of the dividend, the foreign tax not so chargeable to be taken into
account shall be that borne by the body corporate paying the divi-
dend on the relevant profits in so far as it is properly attributable to
the proportion of the relevant profits represented by the dividend.
9. Where—
(a) the arrangements provide, in relation to dividends of some
classes but not in relation to dividends of other classes,
that foreign tax not chargeable directly or by deduction
in respect of dividends is to be taken into account in con-
sidering whether any, and if so what, credit is to be
allowed against the Irish taxes in respect of the dividends,
and
(b) a dividend is paid which is not of a class in relation to which
the arrangements so provide,
then, if the dividend is paid to a company which controls, directly or
indirectly, not less than 50 per cent of the voting power in the com-
pany paying the dividend, credit shall be allowed as if the dividend
were a dividend of a class in relation to which the arrangements so
provide.
Miscellaneous
10. Credit shall not be allowed under the arrangements against the
Irish taxes chargeable in respect of any income of any person if the
person in question elects that credit shall not be allowed in respect
of that income.
11. Where under the arrangements relief may be given either in
the State or in the territory in relation to which the arrangements
are made in respect of any income, and it appears that the assessment
to income tax or to corporation tax made in respect of the income is
not made in respect of the full amount of that income or is incorrect
having regard to the credit, if any, which is to be given under the
arrangements, any such additional assessments may be made as are
necessary to ensure that the total amount of the income is assessed
and the proper credit, if any, is given in respect of that income, and
where the income is entrusted to any person in the State for pay-
ment, any such additional assessment to income tax may be made on
the recipient of the income under Case IV of Schedule D.
12. (1) In this paragraph—
‘‘the relevant year of assessment’’, in relation to credit for foreign
tax in respect of any income, means the year of assessment for which
that income is to be charged to income tax or would be so charged
if any income tax were chargeable in respect of that income;
‘‘the relevant accounting period’’, in relation to credit for foreign tax
in respect of any income, means the accounting period for which that
income is to be charged to corporation tax or would be so charged
if any corporation tax were chargeable in respect of that income.
(2) Subject toparagraph 13, any claim for an allowance by means
of credit for foreign tax in respect of any income shall be made in
writing to the inspector not later than 6 years from the end of the

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.24 relevant year of assessment or the relevant accounting period, as the
case may be, and, if the inspector objects to any such claim, it shall
be heard and determined by the Appeal Commissioners as if it were
an appeal to the Appeal Commissioners against an assessment to
income tax and the provisions of the Income Tax Acts relating to
the rehearing of an appeal and to the statement of a case for the
opinion of the High Court on a point of law shall, with the necessary
modifications, apply accordingly.
13. Where the amount of any credit given under the arrangements
is rendered excessive or insufficient by reason of any adjustment of
the amount of any tax payable either in the State or in the territory
in relation to which the arrangements are made, nothing in the Tax
Acts limiting the time for the making of assessments or claims for
relief shall apply to any assessment or claim to which the adjustment
gives rise, being an assessment or claim made not later than 6 years
from the time when all such assessments, adjustments and other
determinations have been made, as are material in determining
whether any, and if so what, credit is to be given.
SCHEDULE 25
[The Convention set out in this Schedule was ratified subject to the
exclusion of articles XIV and XVI in accordance with reservations
made by the Senate of the United States of America. Instruments of
ratification were exchanged at Washington, District of Columbia, on
20th December, 1951.] Reciprocal Relief of Double Taxation in Respect of Irish Income
Tax, Sur-tax and Corporation Profits Tax and United States
Federal Income Taxes, Including Sur-Taxes
Convention Between the Government of Ireland and the
Government of the United States of America for the
Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with Respect to Taxes on Income
The Government of Ireland and the Government of the United
States of America,
Desiring to conclude a Convention for the avoidance of double tax-
ation and the prevention of fiscal evasion with respect to taxes on
income,
Have appointed for that purpose as their Plenipotentiaries:
The Government of Ireland:
Patrick McGilligan, Minister for Finance;
Sea´
n MacBride, Minister for External Affairs;
The Government of the United States of America;
George A. Garrett, Envoy Extraordinary and Minister Plenipo-
tentiary of the United States of America at Dublin;
Who, having exhibited their respective full powers, found in good
and due form, have agreed as follows:—
Article I
(1) The taxes which are the subject of the present Convention
are:—
1463
Section 833.
[ITA67 Sch8] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.25
1464 (a) In the United States of America:
The Federal income taxes, including surtaxes (hereinafter
referred to as United States tax).
(b) In Ireland:
The income tax (including surtax) and the corporation
profits tax (hereinafter referred to as Irish tax).
(2) The present Convention shall also apply to any other taxes of
a substantially similar character imposed by either Contracting Party
subsequently to the date of the signature of the present Convention.
Article II
(1) In the present Convention, unless the context otherwise
requires—
(a) The term ‘‘United States’’ means the United States of
America, and when used in a geographical sense means
the States, the Territories of Alaska and of Hawaii, and
the District of Columbia.
(b) The term ‘‘Ireland’’ means the Republic of Ireland and the
term ‘‘Irish’’ has a corresponding meaning.
(c) The terms ‘‘territory of one of the Contracting Parties’’ and
‘‘territory of the other Contracting Party’’ mean the
United States or Ireland as the context requires.
(d) The term ‘‘United States corporation’’ means a corporation,
association or other like entity created or organised in or
under the laws of the United States.
(e) The term ‘‘Irish corporation’’ means any kind of juridical
person created under the laws of Ireland.
(f) The terms ‘‘corporation of one Contracting Party’’ and ‘‘cor-
poration of the other Contracting Party’’ mean a United
States corporation or an Irish corporation as the context
requires.
(g) The term ‘‘resident of Ireland’’ means any person (other
than a citizen of the United States or a United States
corporation) who is resident in Ireland for the purposes
of Irish tax and not resident in the United States for the
purposes of United States tax. A corporation is to be
regarded as resident in Ireland if its business is managed
and controlled in Ireland.
(h) The term ‘‘resident of the United States’’ means any indi-
vidual who is resident in the United States for the pur-
poses of United States tax and not resident in Ireland for
the purposes of Irish tax, and any United States corpor-
ation and any partnership created or organised in or
under the laws of the United States, being a corporation
or partnership which is not resident in Ireland for the
purposes of Irish tax.
(i) The term ‘‘Irish enterprise’’ means an industrial or commer-
cial enterprise or undertaking carried on by a resident of
Ireland.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.25 (j) The term ‘‘United States enterprise’’ means an industrial or
commercial enterprise or undertaking carried on by a
resident of the United States.
(k) The terms ‘‘enterprise of one of the Contracting Parties’’
and ‘‘enterprise of the other Contracting Party’’ mean a
United States enterprise or an Irish enterprise, as the
context requires.
(l) The term ‘‘permanent establishment’’ when used with
respect to an enterprise of one of the Contracting Parties
means a branch, management, factory or other fixed
place of business, but does not include an agency unless
the agent has, and habitually exercises, a general auth-
ority to negotiate and conclude contracts on behalf of
such enterprise or has a stock of merchandise from which
he regularly fills orders on its behalf. An enterprise of
one of the Contracting Parties shall not be deemed to
have a permanent establishment in the territory of the
other Contracting Party merely because it carries on busi-
ness dealings in the territory of such other Contracting
Party through abona fidecommission agent or broker
acting in the ordinary course of his business as such. The
fact that an enterprise of one of the Contracting Parties
maintains in the territory of the other Contracting Party
a fixed place of business exclusively for the purchase of
goods or merchandise shall not of itself constitute such
fixed place of business a permanent establishment of such
enterprise. The fact that a corporation of one Contracting
Party has a subsidiary corporation which is a corporation
of the other Contracting Party or which is engaged in
trade or business in the territory of such other Con-
tracting Party (whether through a permanent establish-
ment or otherwise) shall not of itself constitute that sub-
sidiary corporation a permanent establishment of its
parent corporation.
(2) For the purposes of Articles VI, VII, VIII, IX and XIV, a
resident of Ireland shall not be deemed to be engaged in trade or
business in the United States in any taxable year unless such resident
has a permanent establishment situated therein in such taxable year.
The same principle shall be applied,mutatis mutandis, by Ireland in
the case of a resident of the United States.
(3) In the application of the provisions of the present Convention
by one of the Contracting Parties any term not otherwise defined
shall, unless the context otherwise requires, have the meaning which
it has under the laws of that Contracting Party relating to the taxes
which are the subject of the present Convention.
Article III
(1) An Irish enterprise shall not be subject to United States tax in
respect of its industrial or commercial profits unless it is engaged in
trade or business in the United States through a permanent establish-
ment situated therein. If it is so engaged, United States tax may be
imposed upon the entire income of such enterprise from all sources
within the United States.
(2) A United States enterprise shall not be subject to Irish tax in
respect of its industrial or commercial profits unless it is engaged in
1465

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.25
1466 trade or business in Ireland through a permanent establishment situ-
ated therein. If it is so engaged, Irish tax may be imposed upon the
entire income of such enterprise from all sources within Ireland.
(3) Where an enterprise of one of the Contracting Parties is
engaged in trade or business in the territory of the other Contracting
Party through a permanent establishment situated therein, there
shall be attributed to such permanent establishment the industrial or
commercial profits which it might be expected to derive if it were an
independent enterprise engaged in the same or similar activities
under the same or similar conditions and dealing at arm’s length with
the enterprise of which it is a permanent establishment, and the pro-
fits so attributed shall, subject to the law of such other Contracting
Party, be deemed to be income from sources within the territory of
such other Contracting Party.
(4) In determining the industrial or commercial profits from
sources within the territory of one of the Contracting Parties of an
enterprise of the other Contracting Party, no profits shall be deemed
to arise from the mere purchase of goods or merchandise within the
territory of the former Contracting Party by such enterprise.
Article IV
Where an enterprise of one of the Contracting Parties, by reason
of its participation in the management, control or capital of an
enterprise of the other Contracting Party, makes with or imposes
on the latter, in their commercial or financial relations, conditions
different from those which would be made with an independent
enterprise, any profits which would normally have accrued to one of
the enterprises but by reason of those conditions have not so
accrued, may be included in the profits of that enterprise and taxed
accordingly.
Article V
(1) Notwithstanding the provisions of Articles III and IV of the
present Convention, profits which an individual resident of Ireland
or an Irish corporation derives from operating ships documented or
aircraft registered under the laws of Ireland, shall be exempt from
United States tax.
(2) Notwithstanding the provisions of Articles III and IV of the
present Convention, profits which a citizen of the United States not
resident in Ireland or a United States corporation derives from
operating ships documented or aircraft registered under the laws of
the United States, shall be exempt from Irish tax.
(3) This Article shall not be deemed to affect the arrangement
between Ireland and the United States, providing for reciprocal
exemption of shipping profits from income tax, effected between the
Government of the United States and the Government of Ireland by
exchange of Notes dated August 24, 1933, and January 8, 1934.
Article VI
(1) The rate of United States tax on dividends derived from a
United States corporation by a resident of Ireland who is subject to
Irish tax on such dividends and not engaged in trade or business in
the United States shall not exceed 15 per cent.; provided that such
rate of tax shall not exceed five per cent. if such a resident is a cor-
poration controlling, directly or indirectly, at least 95 per cent. of the
entire voting power in the corporation paying the dividend, and not

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.25 more than 25 per cent. of the gross income of such paying corpor-
ation is derived from interest and dividends, other than interest and
dividends received from its own subsidiary corporations. Such
reduction of the rate to five per cent. shall not apply if the relation-
ship of the two corporations has been arranged or is maintained pri-
marily with the intention of securing such reduced rate.
(2) Dividends derived from sources within Ireland by an individual
who is (a) a resident of the United States, (b) subject to United
States tax with respect to such dividends, and (c) not engaged in
trade or business in Ireland, shall be exempt from Irish surtax.
(3) Either of the Contracting Parties may terminate this Article by
giving written notice of termination to the other Contracting Party,
through diplomatic channels, on or before the thirtieth day of June
in any calendar year after the calendar year in which the exchange
of the instruments of ratification takes place and in such event para-
graph (1) hereof shall cease to be effective as to United States tax
on and after the first day of January, and paragraph (2) hereof shall
cease to be effective as to Irish tax on and after the sixth day of
April, in the calendar year next following that in which such notice
is given.
Article VII
(1) Interest (on bonds, securities, notes, debentures, or on any
other form of indebtedness) derived from sources within the United
States by a resident of Ireland who is subject to Irish tax on such
interest and not engaged in trade or business in the United States,
shall be exempt from United States tax; but such exemption shall
not apply to such interest paid by a United States corporation to a
corporation resident in Ireland controlling, directly or indirectly,
more than 50 per cent. of the entire voting power in the paying cor-
poration.
(2) Interest (on bonds, securities, notes, debentures, or on any
other form of indebtedness) derived from sources within Ireland by
a resident of the United States who is subject to United States tax
on such interest and not engaged in trade or business in Ireland, shall
be exempt from Irish tax; but such exemption shall not apply to such
interest paid by a corporation resident in Ireland to a United States
corporation controlling, directly or indirectly, more than 50 per cent.
of the entire voting power in the paying corporation.
Article VIII
(1) Royalties and other amounts paid as consideration for the use
of, or for the privilege of using, copyrights, patents, designs, secret
processes and formulae, trademarks, and other like property, and
derived from sources within the United States by a resident of
Ireland who is subject to Irish tax on such royalties or other amounts
and not engaged in trade or business in the United States, shall be
exempt from United States tax.
(2) Royalties and other amounts paid as consideration for the use
of, or for the privilege of using, copyrights, patents, designs, secret
processes and formulae, trademarks, and other like property, and
derived from sources within Ireland by a resident of the United
States who is subject to United States tax on such royalties or other
amounts and not engaged in trade or business in Ireland shall be
exempt from Irish tax.
1467

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.25
1468 (3) For the purposes of this Article the term ‘‘royalties’’ shall be
deemed to include rentals in respect of motion picture films.
Article IX
(1) The rate of United States tax on royalties in respect of the
operation of mines or quarries or of other extraction of natural
resources, and on rentals from real property or from an interest in
such property, derived from sources within the United States by a
resident of Ireland who is subject to Irish tax with respect to such
royalties or rentals and not engaged in trade or business in the
United States, shall not exceed 15 per cent.: provided that any such
resident may elect for any taxable year to be subject to United States
tax as if such resident were engaged in trade or business in the
United States.
(2) Royalties in respect of the operation of mines or quarries or
of other extraction of natural resources, and rentals from real prop-
erty or from an interest in such property, derived from sources within
Ireland by an individual who is (a) a resident of the United States,
(b) subject to United States tax with respect to such royalties and
rentals, and (c) not engaged in trade or business in Ireland, shall be
exempt from Irish surtax.
Article X
(1) Any salary, wage, similar remuneration, or pension, paid by
the Government of the United States to an individual (other than a
citizen of Ireland who is not also a citizen of the United States) in
respect of services rendered to the United States in the discharge of
governmental functions, shall be exempt from Irish tax.
(2) Any salary, wage, similar remuneration, or pension, paid by
the Government of Ireland to an individual (other than a citizen of
the United States who is not also a citizen of Ireland) in respect of
services rendered to Ireland in the discharge of governmental func-
tions, shall be exempt from United States tax.
(3) The provisions of this Article shall not apply to payments in
respect of services rendered in connection with any trade or business
carried on by either of the Contracting Parties for purposes of profit.
Article XI
(1) An individual who is a resident of Ireland shall be exempt
from United States tax upon compensation for personal (including
professional) services performed during the taxable year within the
United States if (a) he is present within the United States for a per-
iod or periods not exceeding in the aggregate 183 days during such
taxable year, and (b) such services are performed for or on behalf of
a person resident in Ireland.
(2) An individual who is a resident of the United States shall be
exempt from Irish tax upon profits, emoluments or other remuner-
ation in respect of personal (including professional) services perfor-
med within Ireland in any year of assessment if (a) he is present
within Ireland for a period or periods not exceeding in the aggregate
183 days during that year, and (b) such services are performed for
or on behalf of a person resident in the United States.
Article XII
(1) Any pension (other than a pension to which Article X applies),

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.25 and any life annuity, derived from sources within the United States
by an individual who is a resident of Ireland shall be exempt from
United States tax.
(2) Any pension (other than a pension to which Article X applies),
and any life annuity, derived from sources within Ireland by an indi-
vidual who is a resident of the United States shall be exempt from
Irish tax.
(3) The term ‘‘life annuity’’ means a stated sum payable period-
ically at stated times, during life or during a specified or ascertainable
period of time, under an obligation to make the payments in con-
sideration of money paid.
Article XIII
(1) Subject to section 131 of the United States Internal Revenue
Code as in effect on the day on which this Convention shall have
come into effect, Irish tax shall be allowed as a credit against United
States tax. For this purpose, the recipient of a dividend paid by a
corporation which is a resident of Ireland shall be deemed to have
paid the Irish income tax appropriate to such dividend if such recipi-
ent elects to include in his gross income for the purposes of United
States tax the amount of such Irish income tax. For the purposes
only of this Article, income derived from sources in the United
Kingdom by an individual who is resident in Ireland shall be deemed
to be income from sources in Ireland if such income is not subject to
United Kingdom income tax.
(2) Subject to such provisions (which shall not affect the general
principle hereof) as may be enacted in Ireland, United States tax
payable in respect of income from sources within the United States
shall be allowed as a credit against any Irish tax payable in respect
of that income. Where such income is an ordinary dividend paid by
a United States corporation, such credit shall take into account (in
addition to any United States income tax deducted from or imposed
on such dividend) the United States income tax imposed on such
corporation in respect of its profits, and where it is a dividend paid
on participating preference shares and representing both a dividend
at the fixed rate to which the shares are entitled and an additional
participation in profits, such tax on profits shall likewise be taken
into account in so far as the dividend exceeds such fixed rate.
(3) For the purposes of this Article, compensation, profits, emolu-
ments and other remuneration for personal (including professional)
services shall be deemed to be income from sources within the terri-
tory of the Contracting Party where such services are performed.
Article XIV
A resident of Ireland not engaged in trade or business in the
United States shall be exempt from United States tax on gains from
the sale or exchange of capital assets.
Article XV
(1) Dividends and interest paid, on or after the first day of January
in the calendar year in which the exchange of instruments of ratifica-
tion takes place, by an Irish corporation shall be exempt from United
States tax except where the recipient is a citizen of or a resident in
the United States or a United States corporation.
1469

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.25
1470 (2) Dividends and interest paid, on or after the sixth day of April
of the first year of assessment specified in Article XXII (2) (b) (i) of
this Convention, by a United States corporation shall be exempt
from Irish tax except where the recipient is a resident of Ireland.
Article XVI
An Irish corporation shall be exempt from United States tax on its
accumulated or undistributed earnings, profits, income or surplus, if
individuals who are residents of Ireland control, directly or
indirectly, throughout the latter half of the taxable year, more than
50 per cent. of the entire voting power in such corporation.
Article XVII
(1) The United States income tax liability for any taxable year
beginning prior to January 1, 1936, of any individual (other than
a citizen of the United States) resident in Ireland, or of any Irish
corporation, remaining unpaid on the date of signature of the present
Convention, may be adjusted on a basis satisfactory to the United
States Commissioner of Internal Revenue: provided that the amount
to be paid in settlement of such liability shall not exceed the amount
of the liability which would have been determined if—
(a) the United States Revenue Act of 1936 (except in the case
of an Irish corporation in which more than 50 per cent.
of the entire voting power was controlled, directly or
indirectly, throughout the latter half of the taxable year,
by citizens or residents of the United States), and
(b) Article XV and XVI of the present Convention,
had been in effect for such year. If the taxpayer was not, within the
meaning of such Revenue Act, engaged in trade or business in the
United States and had no office or place of business therein during
the taxable year, the amount of interest and penalties shall not
exceed 50 per cent. of the amount of the tax with respect to which
such interest and penalties have been computed.
(2) The United States income tax unpaid on the date of signature
of the present Convention for any taxable year beginning after the
thirty-first day of December, 1935, and prior to the first day of Janu-
ary in the calendar year in which the exchange of instruments of
ratification takes place in the case of an individual resident of Ireland
or in the case of any Irish corporation shall be determined as if the
provisions of Articles XV and XVI of the present Convention had
been in effect for such taxable year.
(3) The provisions of paragraphs (1) of this Article shall not
apply—
(a) unless the taxpayer files with the Commissioner of Internal
Revenue on or before the thirty-first day of December of
the second calendar year following the calendar year in
which the exchange of the instruments of ratification
takes place a request that such tax liability be so adjusted
and furnishes such information as the Commissioner may
require; or
(b) in any case in which the Commissioner is satisfied that any
deficiency in tax is due to fraud with intent to evade the
tax.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.25 Article XVIII
A professor or teacher from the territory of one of the Contracting
Parties who visits the territory of the other Contracting Party for
the purpose of teaching, for a period not exceeding two years, at a
university, college, school or other educational institution in the terri-
tory of such other Contracting Party shall be exempted by such other
Contracting Party from tax on his remuneration for such teaching
for such period.
Article XIX
A student or business apprentice from the territory of one of the
Contracting Parties who is receiving full-time education or training
in the territory of the other Contracting Party shall be exempted by
such other Contracting Party from tax on payments made to him by
persons within the territory of the former Contracting Party for the
purposes of his maintenance, education or training.
Article XX
(1) The taxation authorities of the Contracting Parties shall
exchange such information (being information available under the
respective taxation laws of the Contracting Parties) as is necessary
for carrying out the provisions of the present Convention or for the
prevention of fraud or the administration of statutory provisions
against legal avoidance in relation to the taxes which are the subject
of the present Convention. Any information so exchanged shall be
treated as secret and shall not be disclosed to any person other than
those concerned with the assessment and collection of the taxes
which are the subject of the present Convention. No information
shall be exchanged which would disclose any trade secret or trade
process.
(2) As used in this Article, the term ‘‘taxation authorities’’ means,
in the case of the United States, the Commissioner of Internal Rev-
enue or his authorised representative and, in the case of Ireland, the
Revenue Commissioners or their authorised representative.
Article XXI
(1) The nationals of one of the Contracting Parties shall not, while
resident in the territory of the other Contracting Party, be subjected
therein to other or more burdensome taxes than are the nationals of
such other Contracting Party resident in its territory.
(2) The term ‘‘nationals’’ as used in this Article means—
(a) In relation to Ireland, all citizens of Ireland; and
(b) In relation to the United States, United States citizens;
and includes all legal persons, partnerships and associations deriving
their status as such from, or created or organised under, the laws in
force in any territory of the Contracting Parties to which the present
Convention applies.
Article XXII
(1) The present Convention shall be ratified and the instruments
of ratification shall be exchanged at Washington, District of Colum-
bia, as soon as possible.
1471

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.25
1472 (2) Upon exchange of ratifications, the present Convention shall
have effect—
(a) as respects United States tax, for the taxable years beginning
on or after the first day of January in the calendar year
in which the exchange of instruments of ratification takes
place;
(b) (i) as respects Irish income tax, for the year of assessment
beginning on the 6th day of April in the calendar
year in which the exchange of instruments of ratifica-
tion takes place and subsequent years;
(ii) as respects Irish surtax, for the year of assessment
beginning on the 6th day of April immediately pre-
ceding the calendar year in which the exchange of
instruments of ratification takes place, and sub-
sequent years; and
(iii) as respects Irish corporation profits tax, for any
chargeable accounting period beginning on or after
the first day of April in the calendar year in which
the exchange of instruments of ratification takes
place, and for the unexpired portion of any charge-
able accounting period current at that date.
Article XXIII
(1) The present Convention shall continue in effect indefinitely
but either of the Contracting Parties may, on or before the 30th day
of June in any calendar year following the calendar year in which
the exchange of instruments of ratification takes place, give to the
other Contracting Party, through diplomatic channels, notice of
termination and, in such event, the present Convention shall cease
to be effective—
(a) as respects United States tax, for the taxable years beginning
on or after the first day of January in the calendar year
next following that in which such notice is given;
(b) (i) as respects Irish income tax, for any year of assess-
ment beginning on or after the 6th day of April in
the calendar year next following that in which such
notice is given;
(ii) as respects Irish surtax, for any year of assessment
beginning on or after the 6th day of April in the cal-
endar year in which such notice is given; and
(iii) as respects Irish corporation profits tax, for any
chargeable accounting period beginning on or after
the first day of April in the calendar year next fol-
lowing that in which such notice is given and for the
unexpired portion of any chargeable accounting per-
iod current at that date.
(2) The termination of the present Convention or of any Article
thereof shall not have the effect of reviving any treaty or arrange-
ment abrogated by the present Convention or by treaties previously
concluded between the Contracting Parties.
IN WITNESS WHEREOF the above-named Plenipotentiaries have
signed the present Convention and have affixed thereto their seals.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.25 Done at Dublin, in duplicate, this thirteenth day of September, 1949.
For the Government of Ireland:
P. McGILLIGAN
SEAN MacBRIDE
For the Government of the United States of America:
GEORGE A. GARRETT.
SCHEDULE 26
Replacement of Harbour Authorities by Port Companies
Interpretation
1. In this Schedule—
‘‘relevant port company’’ means a company formed pursuant to
section 7 or 87 of the Harbours Act, 1996;
‘‘relevant transfer’’ means—
(a) the vesting in a relevant port company of assets in accord-
ance with section 96 of the Harbours Act, 1996, and
(b) the transfer to a relevant port company of rights and liabilit-
ies in accordance with section 97 of that Act.
Capital allowances
2. (1) This paragraph shall apply for the purposes of—
(a) allowances and charges provided for inPart 9,section 670,
Chapter 1ofPart 29andsections 765and769, or any
other provision of the Tax Acts relating to the making of
allowances or charges under or in accordance with that
Part or Chapter or those sections, and
(b) allowances or charges provided for bysections 307and308.
(2) The relevant transfer shall not be treated as giving rise to any
allowance or charge under any of the provisions referred to insubpa-
ragraph (1).
(3) There shall be made to or on the relevant port company in
accordance withsections 307and308all such allowances and charges
in respect of an asset acquired by it in the course of a relevant trans-
fer as would have been made if—
(a) allowances in relation to the asset made to the person from
whom the asset was acquired had been made to the rel-
evant port company, and
(b) everything done to or by that person in relation to the asset
had been done to or by the relevant port company.
Capital gains
3. (1) This paragraph shall apply for the purposes of the Capital
1473
Section 842.
[FA97 Sch5] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.26
Sections 855, 857,
867and942.
[ITA67 Sch17;
F(MP)A68 s3(4)
and Sch Pt III] 1474 Gains Tax Acts, and of the Corporation Tax Acts in so far as those
Acts relate to chargeable gains.
(2) The disposal of an asset by a person in the course of a relevant
transfer shall be deemed to be for a consideration of such amount as
would secure that on the disposal neither a gain nor a loss would
accrue to the person.
(3) Wheresubparagraph (2)has applied in relation to a disposal
of an asset, then, in relation to any subsequent disposal of the asset
by the relevant port company, the relevant port company shall be
treated as if the acquisition or provision of the asset by the person
from whom it was acquired by the relevant port company was that
company’s acquisition or provision of the asset.
(4) For the purposes ofsection 597, the relevant port company and
the person from whom an asset was acquired in the course of a rel-
evant transfer shall be treated as if they were the same person.
SCHEDULE 27
Forms of Declarations to be Made by Certain Persons
PART 1
Form of declaration to be made by Appeal Commissioners acting in
respect of tax under Schedule D
‘‘I, A.B., do solemnly declare, that I will truly, faithfully, impar-
tially and honestly, according to the best of my skill and knowledge,
execute the powers and authorities vested in me by the Acts relating
to income tax, and that I will exercise the powers entrusted to me by
the said Acts in such manner only as shall appear to me necessary
for the due execution of the same; and that I will judge and deter-
mine upon all matters and things which shall be brought before me
under the said Acts without favour, affection, or malice; and that I
will not disclose any particular contained in any schedule, statement,
return or other document delivered with respect to any tax charged
under the provisions relating to Schedule D of the said Acts, or any
evidence or answer given by any person who shall be examined, or
shall make affidavit or deposition, respecting the same, in pursuance
of the said Acts, except to such persons only as shall act in the
execution of the said Acts, and where it shall be necessary to disclose
the same to them for the purposes of the said Acts, or to the Rev-
enue Commissioners, or in order to, or in the course of, a prosecution
for perjury committed in such examination, affidavit or deposition.’’
Form of declaration to be made by inspectors
‘‘I, A.B., do solemnly declare, that in the execution of the Acts
relating to income tax I will examine and revise all statements,
returns, schedules and declarations delivered within my district, and,
in objecting to the same, I will act according to the best of my infor-
mation and knowledge; and that I will conduct myself without fav-
our, affection, or malice, and that I will exercise the powers entrusted
to me by the said Acts in such manner only as shall appear to me to
be necessary for the due execution of the same, or as I shall be
directed by the Revenue Commissioners; and that I will not disclose
any particular contained in any statement, return, schedule or other
document, with respect to any tax charged under the provisions relat-
ing to Schedule D of the said Acts, or any evidence or answer given
by any person who shall be examined, or shall make affidavit or

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.27 deposition, respecting the same, in pursuance of the said Acts, except
to such persons only as shall act in the execution of the said Acts,
and where it shall be necessary to disclose the same to them for the
purposes of the said Acts, or to the Revenue Commissioners, or in
order to, or in the course of, a prosecution for perjury committed in
such examination, affidavit or deposition.’’
Form of declaration to be made by persons appointed under section
854 or section 855 as assessors
‘‘I, A.B., do solemnly declare, that in the execution of the Acts
relating to income tax, I will in all respects act diligently and hon-
estly, and without favour or affection, to the best of my knowledge
and belief, and that I will not disclose any particular contained in
any statement, return, schedule or other document delivered to me
in the execution of the said Acts with respect to any tax charged
under the provisions relating to Schedule D of the said Acts, except
to such persons only as shall act in the execution of the said Acts,
and where it shall be necessary to disclose the same to them for
purposes of the said Acts, or in order to, or in the course of, a pros-
ecution for perjury committed in any matter relating to such state-
ment, return, schedule or other document.’’
Form of declaration to be made by the Collector-General and officers
for receiving tax
‘‘I, A.B., do solemnly declare, that in the execution of the Acts relat-
ing to income tax, I will not disclose any assessment, or the amount
of any sum paid or to be paid by any person, under the said Acts, or
the books of assessment which shall be delivered to me in the
execution of the said Acts, with respect to any tax charged under the
provisions relating to Schedule D of the said Acts, except to such
persons only as shall act in the execution of the said Acts, and where
it shall be necessary to disclose the same to them for the purposes
of the said Acts, or to the Revenue Commissioners, or in order to,
or in the course of, a prosecution for perjury committed in relation
to the said tax.’’
Form of declaration to be made by the Clerk to the Appeal Com-
missioners
‘‘I, A.B., do solemnly declare, that I will diligently and faithfully
execute the office of a clerk according to the Acts relating to income
tax, to the best of my knowledge and judgment; and that I will not
disclose any particular contained in any statement, return, declar-
ation, schedule or other document, with respect to the tax charged
under the provisions relating to Schedule D of the said Acts, or any
evidence or answer given by any person who shall be examined, or
shall make affidavit or deposition, respecting the same, except to
such persons only as shall act in the execution of the said Acts, and
where I shall be directed so to do by the said Acts, or by the com-
missioners under whom I act, or by the Revenue Commissioners, or
in order to, and in the course of, a prosecution for perjury committed
in such examination, affidavit or deposition.’’
PART 2
Form of declaration to be made by a Commissioner for Offices
‘‘I, A.B., do solemnly declare, that I will truly, faithfully, impar-
tially and honestly, according to the best of my skill and knowledge,
execute the powers and authorities vested in me as a Commissioner
for Offices by the Acts relating to income tax, and that I will judge
1475

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.27
Sections 458, 866
and867.
[ITA67 Sch18 pars
II to IX; FA69
s33(1) and Sch4 PtI;
FA90 s20(1); FA97
s146(2) and Sch9
PtII] 1476 and determine upon all matters and things which shall be brought
before me under the said Acts without favour, affection or malice.’’
SCHEDULE 28
Statements, Lists and Declarations
1.—BY OR FOR EVERY PERSON CARRYING ON ANY
TRADE OR EXERCISING ANY PROFESSION TO BE
CHARGED UNDER SCHEDULE D.
The amount of the profits or gains thereof arising within the year
of assessment.
2.—BY EVERY PERSON ENTITLED TO PROFITS OF AN
UNCERTAIN VALUE NOT BEFORE STATED, OR ANY
INTEREST, ANNUITY, ANNUAL PAYMENT, DIS-
COUNT OR DIVIDEND, TO BE CHARGED UNDER
SCHEDULE D.
The full amount of the profits or gains arising therefrom within
the year of assessment.
3.—BY EVERY PERSON ENTITLED TO OR RECEIVING
INCOME FROM SECURITIES OR POSSESSIONS OUT
OF THE STATE TO BE CHARGED UNDER SCHEDULE
D.
(1) The full amount arising within the year of assessment, and the
amount of every deduction or allowance claimed in respect thereof,
together with the particulars of such deduction and the grounds for
claiming such allowance; or
(2) In the case of any such person who satisfies the Revenue Com-
missioners that he or she is not domiciled in the State, or that being
a citizen of Ireland he or she is not ordinarily resident in the State,
or in the case of income arising from such securities and possessions
aforesaid which form part of the investments of the foreign life assur-
ance fund of an assurance company the full amount of the actual
sums received in the State from remittances payable in the State or
from property imported, or from money or value arising from prop-
erty not imported, or from money or value so received on credit or
on account in respect of such remittances, property, money or value
brought into the State in the year of assessment without any
deduction or abatement.
4.—BY EVERY PERSON ENTITLED TO ANY ANNUAL
PROFITS OR GAINS NOT FALLING UNDER ANY OF
THE FOREGOING RULES, AND NOT CHARGED BY
ANY OF THE OTHER SCHEDULES, TO BE CHARGED
UNDER SCHEDULE D.
The full amount thereof received annually, or according to the
average directed to be taken by the inspector on a statement of the
nature of such profits or gains and the grounds on which the amount
has been computed, and the average taken, to the best of the know-
ledge and belief of such person.
5.—STATEMENT OF PROFITS OF ANY PUBLIC OFFICE,
OR EMPLOYMENT OF PROFIT, TO BE CHARGED
UNDER SCHEDULE E.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.28
The amount of the salary, fees, wages, perquisites and profits of
the year of assessment.
6.—GENERAL DECLARATION BY EACH PERSON
RETURNING A STATEMENT OF PROFITS OR GAINS
TO BE CHARGED UNDER SCHEDULES D OR E
Declaring the truth thereof, and that the same is fully stated on
every description of property, or profits or gains, included in the Act
relating to the said tax, and appertaining to such person, estimated
to the best of such person’s judgment and belief, according to the
provisions of the Income Tax Acts.
7.—LISTS AND DECLARATIONS FOR FACILITATING
THE EXECUTION OF THE INCOME TAX ACTS IN
RELATION TO THE TAX CHARGEABLE ON
OTHERS.
First. List containing the name and place of residence of every
person in any service or employ, and the payments made to every
such person in respect of the service or employment.
Second. List to be delivered by every person chargeable on behalf
of another person, and by any person whomsoever who, in whatever
capacity, is in receipt of any money or value, or of profits or gains,
of or belonging to any other person, describing that other person for
whom the person acts, and stating that other person’s name and
address, and the amount of such money, value, profit or gains, and
declaring whether that other person is of full age, or a married
woman living with her husband, or a married woman whose husband
is not accountable for the payment of tax charged on her, or is resi-
dent in the State, or is an incapacitated person. The person delivering
such list shall also deliver a list containing the names and addresses
of any other person or persons acting jointly with such person.
Third. Declaration on whom the tax is chargeable in respect of
any such money, value, profits or gains.
Fourth. List containing the proper description of every body of
persons, or trust for which any person is answerable under the
Income Tax Acts and where any such person is answerable under
the Income Tax Acts for the tax to be charged in respect of the
property or profits or gains of other persons, that person shall deliver
such lists as aforesaid, together with the required statements of such
profits or gains.
8.—LISTS, DECLARATIONS, AND STATEMENTS TO BE
DELIVERED IN ORDER TO OBTAIN ANY ALLOW-
ANCE OR DEDUCTION.
First. Declaration of the amount of value of property or profits or
gains returned, or for which the claimant has been, or is liable to be,
assessed.
Second. Declaration of the amount of rents, interests, annuities, or
other annual payments, in respect of which the claimant is liable to
allow the tax, with the names of the respective persons by whom
such payments are to be made, distinguishing the amount of each
payment.
1477

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.28
1478 Third. Declaration of the amount of interest, annuities, or other
annual payments to be made out of the property or profits or gains
assessed on the claimant, distinguishing each source.
Fourth. Statement of the amount of income derived according to
the 3 preceding declarations.
Fifth. Statement of any tax which the claimant may be entitled to
deduct, retain or charge against any other person.

[1997.]Taxes Consolidation Act,1997. [No.39.] SCHEDULE 29
P
ROVISIONS REFERRED TO IN SECTIONS 1052,1053 AND 1054
Column 1 Column 2 Column 3
section 121 section 128(11) section 123(6)
section 473 or Regulations section 183 section 238(3)
under that section
section 258(2) section 257(1)
section 477
section 505(3) and (4) section 505(1) and (2)
section 531 and
section 510(7) section 531 and
Regulations under that
Regulations under that
section section 645
section
section 877 section 804(4)
section 734(5)
section 878 section 808
section 876
section 879(2) section 812(4)
section 885
section 880 section 815
section 893(3)
section 951(1) and (2) section 881
section 904
paragraphs (a)(iii)(I) and section 888
section 972
(c) of subsection (2) and
section 890
paragraphs (a)(i) and Schedule 2, paragraph 14
(b)(i) of subsection (4) section 891
Schedule 23, paragraph
of section 1002
section 892 3(2)(a)
section 1023
section 893(2) Waiver of Certain Tax,
Waiver of Certain Tax, Interest and Penalties
section 894(3)
Interest and Penalties Act, 1993, sections
Act, 1993, sections section 897 2(3)(a) and 3(6)(b)
2(3)(a) and 3(6)(b)
section 898
section 900
section 909
section 935
section 947
Schedule 1, paragraph 1
Schedule 9, paragraph 8
Schedule 18, paragraph
1(2)
Schedule 23, paragraphs 2,
3(2)(b) and 3(3)
1479
Sections 1052, 1053
and1054.
[ITA67 Sch15;
F(MP)A68 s5(2);
FA72 s13(4) and
Sch1 PtIII par3;
FA73 s33(7) and
Sch 3 par2 and s39
and Sch5 par10;
FA74 s59(6) and
s73(5); FA75 s22(2)
and Sch2 PtII;
FA76 s11(4); FA81
s29(4); FA82 s4(8),
s5(2)(b) and s51(8);
FA83 s20(5), s21(3),
and s22(3); FA84
s24(9) and s29(6);
FA85 s19(4); FA86
s9(11)(b) and
s40(1); FA88
s10(12) and
s73(7)(a); FA89
s18(5)(b), s19(4)
and Sch 1 par3(1);
FA91 s68(4); FA92
s226(7); WCTIPA93
s12; FA95 s7(9)(b)
and s236(7); FA97
s13(2)] [No.39.]Taxes Consolidation Act,1997. [1997.] Section 1098.
1480 SCHEDULE 30
Repeals
Number and year Short title Extent of repeal (1) (2) (3)
No. 11 of 1928. Finance Act, 1928. Section 34(2).
No. 6 of 1967. Income Tax Act, 1967. The whole Act, in so far as it is
unrepealed.
No. 7 of 1967. Income Tax (Amendment) The whole Act, in so far as it is
Act, 1967. unrepealed.
No. 17 of 1967. Finance Act, 1967. Part I, in so far as it is
unrepealed.
Section 25, in so far as it relates
to income tax.
Section 27(2) and (6).
Third Schedule, Part I, in so far
as it relates to income tax.
No. 7 of 1968. Finance (Miscellaneous Parts I and IV, in so far as they
Provisions) Act, 1968. are unrepealed.
Sections 25 to 27.
Section 29(2).
Schedule, Parts I to IV.
No. 33 of 1968. Finance Act, 1968. Part I, in so far as it is
unrepealed.
Sections 37 to 39.
Section 48(2) and (5).
No. 37 of 1968. Finance (No. 2) Act, 1968. Sections 8 and 11(4), in so far as
they are unrepealed.
No. 21 of 1969. Finance Act, 1969. Parts I and II, in so far as they
are unrepealed.
Section 63, in so far as it is
unrepealed.
Sections 64 and 65(1).
Section 67(2) and (7).
Fourth Schedule, Part I.
Fifth Schedule, Part I.
No. 14 of 1970. Finance Act, 1970. Part I, in so far as it is
unrepealed.
Sections 57 to 59.
Section 62(2) and (7).
No. 25 of 1970. Finance (No. 2) Act, 1970. Section 1.
Section 8(2) and (5).
No. 23 of 1971. Finance Act, 1971. Part I, in so far as it is
unrepealed.
Section 55(2) and (6).
No. 19 of 1972. Finance Act, 1972. Part I, in so far as it is
unrepealed.
Section 42.
Section 43, in so far as it is
unrepealed.
Section 46, in so far as it relates
to income tax.
Section 48(2) and (5).
First Schedule, in so far as it is
unrepealed.
Third Schedule, in so far as it
relates to income tax.
Fourth Schedule, in so far as it
relates to income tax.
No. 19 of 1973. Finance Act, 1973. Part I, in so far as it is
unrepealed.
Section 92, except in so far as it
relates to death duties and stamp
duty.
Section 98(2) and (6).
Third Schedule.
Fifth Schedule.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.30
Number and year Short title Extent of repeal (1) (2) (3)
No. 17 of 1974. Finance (Taxation of The whole Act, in so far as it is
Profits of Certain Mines) unrepealed.
Act, 1974.
No. 27 of 1974. Finance Act, 1974. Part I, in so far as it is
unrepealed.
Section 86.
Section 88(2) and (5).
First Schedule.
Second Schedule.
No. 6 of 1975. Finance Act, 1975. Part I, in so far as it is
unrepealed.
Section 57(2) and (5).
First Schedule.
Second Schedule.
No. 19 of 1975. Finance (No. 2) Act, 1975. Sections 1 and 4(2).
No. 20 of 1975. Capital Gains Tax Act, The whole Act, in so far as it is
1975. unrepealed.
No. 7 of 1976. Corporation Tax Act, The whole Act, in so far as it is
1976. unrepealed.
No. 16 of 1976. Finance Act, 1976. Part I, in so far as it isunrepealed.
Section 81(1) and (3)(a).
Section 83(2) and (6).
First Schedule.
Fifth Schedule, Part I.
No. 18 of 1977. Finance Act, 1977. Part I, in so far as it isunrepealed.
Section 53.
Section 54, in so far as it relates
to income tax, corporation tax
and capital gains tax.
Section 56(2) and (7).
First Schedule.
Second Schedule, in so far as it
relates to income tax, corporation
tax and capital gains tax.
No. 21 of 1978. Finance Act, 1978. Part I, in so far as it isunrepealed.
Section 46, in so far as it relates
to income tax, corporation tax
and capital gains tax.
Sections 47, 52(1) and 54(2) and
(8).
First Schedule.
Second Schedule.
Fourth Schedule, Part I.
No. 33 of 1978. Capital Gains Tax The whole Act, in so far as it is
(Amendment) Act, 1978. unrepealed.
No. 11 of 1979. Finance Act, 1979. Part I, in so far as it isunrepealed.
Section 59(2) and (6).
First Schedule.
Second Schedule.
No. 14 of 1980. Finance Act, 1980. Part I, in so far as it is
unrepealed.
Sections 89 and 96(2) and (7).
First Schedule.
No. 16 of 1981. Finance Act, 1981. Part I, in so far as it isunrepealed.
Sections 52 and 54(2) and (7).
First Schedule.
No. 14 of 1982. Finance Act, 1982. Part I, in so far as it is
unrepealed.
Sections 105(2) and (7).
First Schedule.
Second Schedule.
Third Schedule.
1481

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.30
1482
Number and year Short title Extent of repeal (1) (2) (3)
No. 15 of 1983. Finance Act, 1983. Part I, in so far as it is
unrepealed.
Part V.
Section 120, in so far as it relates
to income tax, corporation tax
and capital gains tax.
Section 122(2) and (6).
Fourth Schedule, in so far as it
relates to income tax, corporation
tax and capital gains tax.
No. 9 of 1984. Finance Act, 1984. Part I, in so far as it is
unrepealed.
Section 116(2) and (7).
First Schedule.
Second Schedule.
No. 10 of 1985. Finance Act, 1985. Part I.
Sections 69 and 71(2) and (7).
First Schedule.
No. 13 of 1986. Finance Act, 1986. Part I, in so far as it is
unrepealed.
Sections 112 to 116.
Sections 118(2), (7) (in so far as
it relates to income tax,
corporation tax and capital gains
tax) and (8).
First Schedule.
Second Schedule.
Third Schedule.
Fourth Schedule.
No. 34 of 1986. Income Tax (Amendment) The whole Act.
Act, 1986.
No. 10 of 1987. Finance Act, 1987. Part I.
Sections 52 and 55(2) and (7).
No. 12 of 1988. Finance Act, 1988. Part I, in so far as it is
unrepealed.
Sections 70 to 74.
Sections 77(2), (7) (except in so
far as it relates to the Local
Loans Fund) and (8).
First Schedule.
Second Schedule.
Third Schedule.
No. 6 of 1989. Judicial Separation and Section 26.
Family Law Reform Act,
1989.
No. 10 of 1989. Finance Act, 1989. Part I, in so far as it is
unrepealed.
Sections 86 to 89.
Sections 95, 98 and 100(2), (7)
(except in so far as it relates to
capital acquisitions tax) and (8).
First Schedule.
No. 10 of 1990. Finance Act, 1990. Part I.
Sections 131, 136, 137, 138 and
140(2) and (8).
First Schedule.
Second Schedule.
Third Schedule.
Fourth Schedule.
Fifth Schedule.
Sixth Schedule.
No. 13 of 1991. Finance Act, 1991. Part I, in so far as it is
unrepealed.
Sections 126, 128, 130 and 132(2)
and (8).
First Schedule.
Second Schedule.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.30
Number and year Short title Extent of repeal (1) (2) (3)
No. 3 of 1992. Oireachtas (Allowances to Section 4.
Members) and Ministerial
and Parliamentary Offices
Act, 1992.
No. 9 of 1992. Finance Act, 1992. Part I, in so far as it is
unrepealed.
Part VII, except section 248 in so
far as it relates to residential
property tax.
Section 254(2), (8) (except in so
far as it relates to residential
property tax) and (9).
First Schedule.
Second Schedule.
No. 28 of 1992. Finance (No. 2) Act, 1992. Part I.
Section 30(2).
No. 13 of 1993. Finance Act, 1993. Part I, in so far as it is
unrepealed.
Sections 140 and 143(2) and (8).
First Schedule.
No. 24 of 1993. Waiver of Certain Tax, Sections 10 to 13.
Interest and Penalties Act,
1993.
No. 13 of 1994. Finance Act, 1994. Part I, in so far as it is
unrepealed.
Part VII, Chapter I.
Section 161, except in so far as it
relates to stamp duty.
Sections 162, 163(2), 164 and
166(2) and (8).
First Schedule.
Second Schedule.
No. 8 of 1995. Finance Act, 1995. Part I, in so far as it is
unrepealed.
Part VII, Chapter I.
Sections 172 to 177.
Section 179(2), (8) and (9).
First Schedule.
Second Schedule.
Third Schedule.
Fourth Schedule.
No. 26 of 1995. Family Law Act, 1995. Section 37.
No. 9 of 1996. Finance Act, 1996. Part I, in so far as it is
unrepealed.
Part VI.
Sections 139 and 143(2), (7) and
(8).
First Schedule.
Fifth Schedule.
No. 25 of 1996. Disclosure of Certain Sections 5, 6, 10, 11 and 12.
Information for Taxation
and Other Purposes Act,
1996.
No. 31 of 1996. Criminal Assets Bureau Sections 23 and 24(1) and (2).
Act, 1996.
No. 33 of 1996. Family Law (Divorce) Section 31.
Act, 1996.
No. 22 of 1997. Finance Act, 1997. Parts I and VII.
Sections 157, 158, 159, 160(1) and
166(2), (8) and (9).
First Schedule.
Second Schedule.
Third Schedule.
Fourth Schedule.
Fifth Schedule.
Sixth Schedule.
Ninth Schedule.
Tenth Schedule.
1483

[No.39.]Taxes Consolidation Act,1997. [1997.] Section 1100.
1484 SCHEDULE 31
Consequential Amendments
In the enactments specified inColumn (1)of the following Table for
the words set out or referred to inColumn (2)there shall be substi-
tuted the words set out in the corresponding entry inColumn (3).
Enactment amended Words to be replaced Words to be substituted (1) (2) (3)
The Stamp Act, 1891:
section 13(1), in the section 156 of the Income section 850 of the Taxes
definition of ‘‘Appeal Tax Act, 1967 Consolidation Act, 1997
Commissioners’’
section 13(4) Part XXVI (Appeals) of Chapter 1 of Part 40
the Income Tax Act, 1967 (Appeals) of the Taxes
Consolidation Act, 1997
The Finance (1909-10)
Act, 1910:
section 49, in the first section 242 of the Finance section 1094 of the Taxes
proviso to subsection (1) Act, 1992 Consolidation Act, 1997
section 49, in the second section 242 (as amended section 1094 of the Taxes
proviso to subsection (1) by the Finance Act, 1993) Consolidation Act, 1997
of the Finance Act, 1992
section 49, in paragraph section 242 of the Finance section 1094 of the Taxes
(a) of subsection (1A) Act, 1992 Consolidation Act, 1997
subsection (6) of the said subsection (7) of that
section 242 section
The Betting Act, 1931, the section 242 (as amended) section 1094 of the Taxes
proviso to section 7 (3) by the Finance Act, 1993) Consolidation Act, 1997
of the Finance Act, 1992
The Auctioneers and
House Agents Act, 1947:
section 8, in the proviso section 242 (as amended section 1094 of the Taxes
to subsection (1) by the Finance Act, 1993) Consolidation Act, 1997
of the Finance Act, 1992
section 9, in the proviso section 242 (as amended section 1094 of the Taxes
to subsection (1) by the Finance Act, 1993) Consolidation Act, 1997
of the Finance Act, 1992
section 10, in the section 242 (as amended section 1094 of the Taxes
proviso to subsection (1) by the Finance Act, 1993) Consolidation Act, 1997
of the Finance Act, 1992
The Finance Act, 1952, section 156 of the section 9 of the Taxes
section 19(2) Corporation Tax Act, 1976 Consolidation Act, 1997
The Gaming and Lotteries section 242 (as amended section 1094 of the Taxes
Act, 1956, the proviso to by the Finance Act, 1993) Consolidation Act, 1997
section 19 of the Finance Act, 1992
The Civil Service section 156(1) of the section 850(1) of the Taxes
Commissioners Act, 1956, Income Tax Act, 1967 Consolidation Act, 1997
section 27(3)
The Income Tax
(Purchased Life Annuities)
Regulations, 1959 (S.I. No.
152 of 1959):
Regulation 2, in the section 22 of the Finance section 788 of the Taxes
definition of ‘‘the Act, 1959 Consolidation Act, 1997
principal section’’
Regulation 5 subsection (3) subsection (5)
subsection (4) subsection (6)

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.31
Enactment amended Words to be replaced Words to be substituted (1) (2) (3)
The Income Tax
(Purchased Life Annuities)
Regulations, 1959 (S.I. No.
152 of 1959): —contd.
Regulation 7 Subsection (3) of section 5 Subsection (3) of section
of the Finance Act, 1929 933 of the Taxes
(No. 32 of 1929), as Consolidation Act, 1997
amended by section 3 of
the Finance Act, 1958 (No.
25 of 1958)
Regulation 9 Sections 149 and 196 of Sections 941 and 942 of
the Income Tax Act, 1918 the Taxes Consolidation
Act, 1997
Regulation 17 Rule 17 of the General Section 1023 of the Taxes
Rules Consolidation Act, 1997
The Income Tax
(Employments)
Regulations, 1960 (S.I. No.
28 of 1960):
Regulation 2, in ‘‘the Act’’ means the ‘‘the Act’’ means the
paragraph (1) Finance (No. 2) Act, 1959 Taxes Consolidation Act,
(No. 42 of 1959) 1997
Regulation 2, paragraph Part II of the Act Chapter 4 of Part 42 of
(1), in the definition of the Act
‘‘emoluments’’
Regulation 36, in Section 7 of the Finance Section 962 of the Act, as
paragraph (2) Act, 1923 (No. 21 of 1923), applied by section 993 of
as applied by section 11 of the Act
the Act
Regulation 36, in Section 11 of the Finance Section 963 of the Act, as
paragraph (3) Act, 1924 (No. 27 of 1924), applied by section 993 of
as applied by section 11 of the Act
the Act
Regulation 59 section 222 or 223 of the section 774 or 776 of the
Income Tax Act, 1967 Act
(No. 6 of 1967) or by
virtue of section 16, 17 or
25 of the Finance Act,
1972 (No. 19 of 1972)
Regulation 60 Chapter IV of Part V of Chapter 4 of Part 42 of
the Income Tax Act, 1967 the Act
The Income Tax
(Construction Contracts)
Regulations, 1971 (S.I. No.
1 of 1971):
Regulation 2, in the subsection (9)(a) of the subsection (13)(a)of
definition of ‘‘certified principal section section 531 of the Act
sub-contractor’’
Regulation 2, in the the principal section section 530 of the Act
definition of ‘‘principal’’
subsection (2) of that section 531 of the Act
section
Regulation 2 ‘‘principal section’’ means ‘‘the Act’’ means the
section 17 (inserted by the Taxes Consolidation Act,
Finance Act, 1976 (No. 16 1997;
of 1976)) of the Finance
Act, 1970 (No. 14 of 1970);
Regulation 2, in the the principal section section 530 of the Act
definition of ‘‘relevant
contract’’
1485

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.31
1486
Enactment amended Words to be replaced Words to be substituted (1) (2) (3)
The Income Tax
(Construction Contracts)
Regulations, 1971 (S.I. No.
1 of 1971): —contd.
Regulation 2, in the subsection (4) of the subsection (5) of section
definition of principal section 531 of the Act
‘‘repayment period’’
Regulation 2, in the subsection (2) of the subsection (1) of section
definition of ‘‘sub- principal section 531 of the Act
contractor’’
Regulation 2, in the subsection (7) of the subsection (11) of section
definition of ‘‘sub- principal section 531 of the Act
contractor’s certificate’’
Regulation 4 subsection (8)(a) of the subsection (12)(a)of
principal section section 531 of the Act
Regulation 4A, in subsection (8)(a) of the subsection (12)(a)of
paragraph (1) principal section section 531 of the Act
Regulation 4A, in section 103(5) of the section 433(4) of the Act
paragraph (2)(c) Corporation Tax Act, 1976
subsection (1) of the subsection (1) of section
principal section 530 of the Act
Regulation 4B, in subsection (8)(a) of the subsection (12)(a)of
paragraph (4) principal section section 531 of the Act
Regulation 4C, in subsection (7) of the subsection (11) of section
paragraph (2)(a)(ii) principal section 531 of the Act
Regulation 4C, in subsection (5)(a)(i) of the subsection (6)(a)(i) of
paragraph (2)(b) principal section section 531 of the Act
Regulation 4C, in the principal section section 530 of the Act
paragraph (2)(c)
Regulation 4C, in subsection (7) of the subsection (11) of section
paragraph (2)(d) principal section 531 of the Act
Regulation 6, in subsection (8) of the subsection (12) of section
paragraph (3) principal section 531 of the Act
Regulation 8, in para- subsection (2) of the princi- subsection (1) of section
graph (1) pal section 531 of the Act
Regulation 10, in para- the principal section section 531 of the Act
graph (1)
Regulation 11, in para- the principal section section 531 of the Act
graph (1)
sections 480, 485, 486, 488 sections 962, 963, 966 and
and 491 of the Income Tax 998 of the Act
Act, 1967
Regulation 12, in para- the principal section section 531 of the Act
graph (1)
Regulation 13, in para- subsection (2) of the princi- subsection (1) of section
graph (1) pal section 531 of the Act
Regulation 13, in para- subsection (4)(c)(ii) of the subsection (5)(c)(ii) of
graph (3) principal section section 531 of the Act
Regulation 14 Chapter IV of Part V of the Chapter 4 of Part 42 of the
Income Tax Act, 1967 Act
Regulation 19, in para- subsection (8)(a) of the subsection (12)(a)of
graph (1) principal section section 531 of the Act

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.31
Enactment amended Words to be replaced Words to be substituted (1) (2) (3)
The Income Tax
(Construction Contracts)
Regulations, 1971 (S.I. No.
1 of 1971): —contd.
Regulation 20 subsection (9)(a) of the subsection (13)(a)of
principal section section 531 of the Act
the said subsection (9)(a) subsection (13)(a)of
section 531 of the Act
Regulation 21, in Chapter III of Part IV of Part 43 of the Act
paragraph (3) the Income Tax Act, 1967
(No. 6 of 1967)
The Finance Act, 1969, section 94 of the Finance section 1078 of the Taxes
section 49(2B)(c) Act, 1983 Consolidation Act, 1997
The Value-Added Tax
Act, 1972:
section 1, in the section 156 of the Income section 850 of the Taxes
definition of ‘‘Appeal Tax Act, 1967 Consolidation Act, 1997
Commissioners’’
section 1, in the section 162 of the Income section 851 of the Taxes
definition of ‘‘Collector- Tax Act, 1967 Consolidation Act, 1997
General’’
section 1, in the section 161 of the Income section 852 of the Taxes
definition of ‘‘inspector Tax Act, 1967 Consolidation Act, 1997
of taxes’’
section 1, in the section 207(2) of the section 1044(2) of the
definition of ‘‘secretary’’ Income Tax Act, 1967 Taxes Consolidation Act,
1997
section 1(2)(bb) section 73 of the Finance section 1002 of the Taxes
Act, 1988 Consolidation Act, 1997
section 1(2)(c)(i) Chapter III of Part I of Chapter 1 of Part 18 of the
the Finance Act, 1987 Taxes Consolidation Act,
1997
section 1(2)(c)(ii) section 17 of the Finance Chapter 2 of Part 18 of the
Act, 1970 Taxes Consolidation Act,
1997
section 18(1)(a)(iia) section 94 (as amended by section 1078 of the Taxes
section 243 of the Finance Consolidation Act, 1997
Act, 1992) of the Finance
Act, 1983
section 24(1)(b) sections 480, 485, 486, 487, sections 962, 963, 964(1),
488 and 491 of the Income 966, 967 and 998 of the
Tax Act, 1967 Taxes Consolidation Act,
1997
section 24(5) under section 485 of the under section 962 of the
Income Tax Act, 1967 Taxes Consolidation Act,
1997
section 485 section 962
section 27(11) section 94 (as amended by section 1078 of the Taxes
section 243 of the Finance Consolidation Act, 1997
Act, 1992) of the Finance
Act, 1983
section 31 section 512 of the Income section 1065 of the Taxes
Tax Act, 1967 Consolidation Act, 1997
First Schedule, in section 18 of the Finance section 734 of the Taxes
paragraph (i)(g) Act, 1989 Consolidation Act, 1997
1487

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.31
1488
Enactment amended Words to be replaced Words to be substituted (1) (2) (3)
The Imposition of Duties section 242 (as amended section 1094 of the Taxes
(No. 21) (Excise Duties) by the Finance Act, 1993) Consolidation Act, 1997
Order, 1975 (S.I. No. 307 of the Finance Act, 1992
of 1975), the proviso to
paragraph 12 (12)
The Capital Acquisitions
Tax Act, 1976:
section 16(2), in the section 95 of the section 431 of the Taxes
definition of ‘‘private Corporation Tax Act, 1976 Consolidation Act, 1997
company’’
subsection (1) subsection (3)
subsection (4) subsection (6)
section 52(1), in the section 156 of the Income section 850 of the Taxes
definition of ‘‘Appeal Tax Act, 1967 Consolidation Act, 1997
Commissioners’’
section 58(2)(b) section 142 of the Income section 466 of the Taxes
Tax Act, 1967 Consolidation Act, 1997
section 63(9) sections 128(4), 507, 508, sections 987(4), 1061, 1062,
510, 511, 512, 517 and 518 1063, 1064, 1065, 1066 and
of the Income Tax Act, 1068 of the Taxes
1967 Consolidation Act, 1997
Second Schedule, Part I, section 2 of the Income section 3 of the Taxes
paragraph 9, in the Tax Act, 1967 Consolidation Act, 1997
definition of
‘‘investment income’’
The Value-Added Tax
Regulations, 1979 (S.I. No.
63 of 1979):
Regulation 15, in Section 485 of the Income Section 962 of the Taxes
paragraph (2) Tax Act, 1967 Consolidation Act, 1997
the words from modification in subsection
‘‘modifications in (1), namely, the words
subsection (1)’’ to the end ‘‘any sum which may be
of the paragraph levied on that person in
respect of income tax’’
shall be construed as
referring to value-added
tax payable by the person
concerned
Regulation 15, in Section 486 of the Income Section 963 of the Taxes
paragraph (3) Tax Act, 1967 Consolidation Act, 1997
Regulation 15, in income tax or sur-tax income tax
paragraph (3)(a)
Regulation 15, in para- the Collector or other the Collector-General or
graph (3)(b) officer of the Revenue other officer of the Rev-
Commissioners, duly auth- enue Commissioners duly
orised to collect the said authorised to collect the
tax tax
the Collector or other the Collector-General or
officer under this section other officer under this sec-
tion
Regulation 15, in para- Section 487 of the Income Section 964(1) of the Taxes
graph (4) Tax Act, 1967 Consolidation Act, 1997
Regulation 15, in para- Section 488 of the Income Section 966 of the Taxes
graph (5) Tax Act, 1967 Consolidation Act, 1997
Regulation 15, in para- income tax or sur-tax income tax
graph (5)(a)
Regulation 15, in para- references to an inspector references to an inspector
graph (5)(b) and to the Collector and to the Collector-Gen-
eral

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.31
Enactment amended Words to be replaced Words to be substituted (1) (2) (3)
The Value-Added Tax
Regulations, 1979 (S.I. No.
63 of 1979): —contd.
Regulation 15, in Section 491 of the Income Section 998 of the Taxes
paragraph (6) Tax Act, 1967 Consolidation Act, 1997
income tax or sur tax income tax
The Health Contributions
Act, 1979:
section 1, in the section 162 of the Income section 851 of the Taxes
definition of ‘‘the Tax Act, 1967 Consolidation Act, 1997
Collector-General’’
section 1, in the Chapter IV of Part V of Chapter 4 of Part 42 of the
definition of the Income Tax Act, 1967, Taxes Consolidation Act,
‘‘emoluments’’ but without regard to 1997, but without regard
section 192 of that Act to section 1015 of that Act
section 7A section 3 of the Finance section 1025 of the Taxes
Act, 1983 Consolidation Act, 1997
The Health Contribution
Regulations, 1979 (S.I. No.
107 of 1979):
Regulation 3, in the section 162 of the Income section 851 of the Taxes
definition of ‘‘the Tax Act, 1967 (No. 6 of Consolidation Act, 1997
Collector’’ 1967)
Regulation 3, in the ‘‘an individual to whom ‘‘an individual to whom
definition of ‘‘excepted section 16 applies’’ within subsection (1) applies’’
farmer’’ the meaning of Chapter II within the meaning of
of Part I of the Finance section 657 of the Taxes
Act, 1974 (No. 27 of 1974), Consolidation Act, 1997, if
if paragraphs (b) and (d) paragraphs (b) and (d)of
of section 16(1), and the definition of ‘‘an
section 16(2), of that Act individual to whom
did not apply subsection (1) applies’’ in
subsection (1) of that
section of that Act and
subsection (2) of that
section of that Act did not
apply
Regulation 3, in the section 13(1) of the section 654 of the Taxes
definition of ‘‘farm land Finance Act, 1974 Consolidation Act, 1997
occupied by the
individual’’
Regulation 4 Chapter IV of Part V of Chapter 4 of Part 42 of the
. the Income Tax Act, 1967, Taxes Consolidation Act,
applies but without regard 1997, applies but without
to Chapter I of Part IX of regard to sections 1015 to
that Act 1024 of that Act
Regulation 6 Chapter I (inserted by the sections 1015 to 1024 of
Finance Act, 1980) (No. 14 the Taxes Consolidation
of 1980) of Part IX of the Act, 1997
Income Tax Act, 1967
(No. 6 of 1987)
section 33 of the Finance the definition of ‘‘capital
Act, 1975 (No. 6 of 1975) allowance’’ in section 2(1)
of the Taxes Consolidation
Act, 1997
The Youth Employment
Agency Act, 1981:
section 1 (1), in the section 162 of the Income section 851 of the Taxes
definition of ‘‘the Tax Act, 1967 Consolidation Act, 1997
Collector-General’’
section 1 (1), in the Chapter IV of Part V of Chapter 4 of Part 42 of the
definition of the Income Tax Act, 1967 Taxes Consolidation Act,
‘‘emoluments’’ (but without regard to 1997 (but without regard
Chapter I (inserted by the to sections 1015 to 1024 of
Finance Act, 1980) of Part that Act)
IX of that Act)
section 18A section 3 of the Finance section 1025 of the Taxes
Act, 1983 Consolidation Act, 1997
1489

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.31
1490
Enactment amended Words to be replaced Words to be substituted (1) (2) (3)
The Youth Employment
Levy Regulations 1982,
(S.I. No. 84 of 1982):
Regulation 3, in the section 162 of the Income section 851 of the Taxes
definition of ‘‘the Tax Act, 1967 (No. 6 of Consolidation Act, 1997
Collector’’ 1967)
Regulation 3, in the an individual to whom an individual to whom
definition of ‘‘excepted section 16 applies within subsection (1) applies
farmer’’ the meaning of Chapter II within the meaning of
of Part I of the Finance section 657 of the Taxes
Act, 1974 (No. 27 of 1974), Consolidation Act, 1997, if
if paragraph (b) and (d) of paragraphs (b) and (d)of
subsection (1) and the definition of ‘‘an
subsection (2) of section individual to whom
16 of that Act did not subsection (1) applies’’ in
apply subsection (1) of that
section of that Act and
subsection (2) of that
section of that Act did not
apply
Regulation 3, in the section 13(1) of the section 654 of the Taxes
definition of ‘‘farm land Finance Act, 1974 Consolidation Act, 1997
occupied by the
individual’’
Regulation 6 Chapter I (inserted by the sections 1015 to 1024 of
Finance Act, 1980 (No. 14 the Taxes Consolidation
of 1980)) of Part IX of the Act, 1997
Income Tax Act, 1967
(No. 6 of 1967)
section 33 of the Finance the definition of ‘‘capital
Act, 1975 (No. 6 of 1975) allowance’’ in section 2(1)
of the Taxes Consolidation
Act, 1997
Regulation 16 section 195 of the Income section 1018 of the Taxes
Tax Act, 1967 Consolidation Act, 1997
The Income Tax (Rent
Relief) Regulations, 1982
(S.I. No. 318 of 1982):
Regulation 2 Chapter IV of Part IV of Chapter 8 of Part 4 of the
the Income Tax Act, 1967 Taxes Consolidation Act,
(No. 6 of 1967) 1997
section 142A (inserted by section 473 of the Taxes
section 5 of the Finance Consolidation Act, 1997
Act, 1982 (No. 14 of
1982)) of the Income Tax
Act, 1967
Regulation 3 subsection (5)(a)(i) subsection (6)(a)(i)
Regulation 5 section 6 of the Finance sections 886 and 905
Act, 1968 (No. 33 of 1968),
and section 34 of the
Finance Act, 1976 (No. 16
of 1976)
The Finance Act, 1984, subsection (9) of section subsection (1) of section
section 108(1)(b)(ii) 235 of the Income Tax 783 of the Taxes
Act, 1967 Consolidation Act, 1997
section 235A section 785
The Finance Act, 1986:
section 94(1)(a), in the section 155(1) of the section 1 of the Taxes
definition of Corporation Tax Act, 1976 Consolidation Act, 1997
‘‘Corporation Tax Acts’’
section 94(1)(a), in the section 84(2)(d) of the section 130(2)(d)ofthe
definition of ‘‘relevant Corporation Tax Act, 1976 Taxes Consolidation Act,
interest’’ 1997

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.31
Enactment amended Words to be replaced Words to be substituted (1) (2) (3)
The Health Contributions section 195 of the Income section 1018 of the Taxes
(Amendment) Tax Act, 1967 Consolidation Act, 1997
Regulations, 1988 (S.I. No.
51 of 1988), Regulation 3,
in paragraph (2)
The Finance Act, 1989, the section 242 (as amended section 1094 of the Taxes
proviso to section 45(3)(b) by the Finance Act, 1993) Consolidation Act, 1997
of the Finance Act, 1992
The Finance Act, 1990:
section 112(5) section 94 of the Finance section 1078 of the Taxes
Act, 1983 Consolidation Act, 1997
section 129(1) subsection (9) of section subsection (1) of section
235 of the Income Tax 783 of the Taxes
Act, 1967 Consolidation Act, 1997
The Finance Act, 1991:
section 108(1) section 485 of the Income section 962 of the Taxes
Tax Act, 1967 Consolidation Act, 1997
section 109(1) Sections 128(4), 507, 508, Sections 987(4), 1061,
510, 511, 512, 517 and 518 1062, 1063, 1064, 1065,
of the Income Tax Act, 1066 and 1068 of the
1967 Taxes Consolidation Act,
1997
Income Tax Act, 1967 Taxes Consolidation Act,
1997
section 129(1), in the section 162 of the Income section 851 of the Taxes
definition of ‘‘the Tax Act, 1967 Consolidation Act, 1997
Collector’’
section 129(3) Section 187 of the Income Section 928(1) and 964(2)
Tax Act, 1967 of the Taxes Consolidation
Act, 1997
The Finance Act, 1992:
section 206(a), (aa) and section 18 of the Finance section 734 of the Taxes
(c)(ii) Act, 1989 Consolidation Act, 1997
section 206(b) subsection (5A) (inserted subsection (6) of section
by section 34 of the 731 of the Taxes
Finance Act, 1977) of Consolidation Act, 1997
section 31 of the Capital
Gains Tax Act, 1975
section 207(2) section 18 of the Finance section 734 of the Taxes
Act, 1989 Consolidation Act, 1997
The Finance Act, 1993:
section 106(2)(b) section 31 of the Finance section 110 of the Taxes
Act, 1991 Consolidation Act, 1997
section 109(1), in the subsection (9A) (inserted subsection (11) of section
definition of ‘‘dependent by the Finance Act, 1979) 604 of the Taxes
relative’’ of section 25 of the Capital Consolidation Act, 1997
Gains Tax Act, 1975
section 112(a)(i)(A) section 235(9) of the section 783(1) of the Taxes
Income Tax Act, 1967 Consolidation Act, 1997
section 112(a)(i)(B) section 235 or section section 784 or section 785
235A
section 112(a)(iii) section 236 of the Income section 787 of the Taxes
Tax Act, 1967 Consolidation Act, 1997
section 112(d), proviso subsection (1A) of section subsection (1) of section
(i) 142 of the Income Tax 466 of the Taxes
Act, 1967 Consolidation Act, 1997
section 133(1) section 36 of the Finance section 451 of the Taxes
Act, 1988 Consolidation Act, 1997
1491

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.31
1492
Enactment amended Words to be replaced Words to be substituted (1) (2) (3)
The Social Welfare
(Consolidation) Act, 1993:
section 2, in the section 162 of the Income section 851 of the Taxes
definition of ‘‘Collector- Tax Act, 1967 Consolidation Act, 1997
General’’
section 2, in the Chapter IV of Part V of Chapter 4 of Part 42 of the
definition of the Income Tax Act, 1967 Taxes Consolidation Act,
‘‘reckonable 1997
emoluments’’
section 2, in the section 2 or section 18 of section 195, 231 or 232 of
definition of the Finance Act, 1969 the Taxes Consolidation
‘‘reckonable income’’ Act, 1997
Chapter 1 (inserted by the Chapter 1 of Part 44 of the
Finance Act, 1980) of Part Taxes Consolidation Act,
IX of the Income Tax Act, 1997
1967
section 2, in the section 33 of the Finance the definition of ‘‘capital
definition of Act, 1975 allowance’’ in section 2(1)
‘‘reckonable income’’ of the Taxes Consolidation
Act, 1997
section 18(1)(b) section 48(1) of the section 1084(1) of the
Finance Act, 1986 Taxes Consolidation Act,
1997
section 20(5) section 195 of the Income section 1018 of the Taxes
Tax Act, 1967 Consolidation Act, 1997
section 212(5) section 17 (as amended by Chapter 2 of Part 18 of the
section 28 of the Finance Taxes Consolidation Act,
Act, 1992) of the Finance 1997
Act, 1970
First Schedule, Part III, section 33 of the Finance the definition of ‘‘capital
paragraph 3(a) Act, 1975 allowance’’ in section 2(1)
of the Taxes Consolidation
Act, 1997
First Schedule, Part III, Chapter II or III of Part IV Chapter 3 of Part 4, or Part
paragraph 4 of the Income Tax Act, 43, of the Taxes Consoli-
1967 dation Act, 1997
First Schedule, Part III, Chapter II or III of Part IV Chapter 3 of Part 4, or Part
paragraph 6 of the Income Tax Act, 43, of the Taxes Consoli-
1967 dation Act, 1997
The Industrial Training section 162 of the Income section 851 of the Taxes
(Apprenticeship Levy) Tax Act, 1967 Consolidation Act, 1997
Act, 1994, section 1(1)
The Casual Trading Act, section 161 of the Income section 852 of the Taxes
1995, section 4(2A) Tax Act, 1967 Consolidation Act, 1997
The Finance Act, 1995:
section 103 section 156 of the Income section 850 of the Taxes
Tax Act, 1967 Consolidation Act, 1997
section 105(3) Part XXVI (as amended) Part 40, other than sections
other than sections 429 and 942, 943 and (in so far as it
430 and (in so far as it relates to those sections)
relates to those sections) 944 of the Taxes Consoli-
section 431, of the Income dation Act, 1997
Tax Act, 1967
The Consumer Credit Act,
1995:
section 93(10)(d) section 242 (as amended by section 1094 of the Taxes
the Finance Act, 1997) of Consolidation Act, 1997
the Finance Act, 1992
section 93(10A)(a)(i) section 242 of the Finance section 1094 of the Taxes
Act, 1992 Consolidation Act, 1997

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.31 Enactment amended Words to be replaced Words to be substituted (1) (2) (3)
The Consumer Credit Act,
1995: —contd.
section 93(10A)(a)(ii) section 242 section 1094
section 116(9)(d) section 242 (as amended section 1094 of the Taxes
by the Finance Act, 1997) Consolidation Act, 1997
of the Finance Act, 1992
section 116(9A)(a)(i) section 242 of the Finance section 1094 of the Taxes
Act, 1992 Consolidation Act, 1997
section 116(9A)(a)(ii) section 242 section 1094
section 144(9)(d) section 242 (as amended section 1094 of the Taxes
by the Finance Act, 1997) Consolidation Act, 1997
of the Finance Act, 1992
section 144(9A)(a)(i) section 242 of the Finance section 1094 of the Taxes
Act, 1992 Consolidation Act, 1997
section 144(9A)(a)(ii) section 242 section 1094
The Finance Act, 1996, section 94(2)(d) of the section 1078(2)(d)ofthe
section 108(4) Finance Act, 1983 Taxes Consolidation Act,
1997
The Social Welfare
(Consolidated
Contributions and
Insurability) Regulations,
1996 (S.I. No. 312 of
1996):
Regulation 3, in the section 161 of the Act of section 852 of the Act of
definition of ‘‘inspector 1967 1997
of taxes’’
Regulation 3, in the Chapter IV of Part V of Chapter 4 of Part 42 of the
definition of the Act of 1967 Act of 1997
‘‘reckonable earnings’’
section 192 of that Act section 1015 of that Act
the Act of 1967 (other the Act of 1997 (other
than Chapter IV of Part than Chapter 4 of Part 42)
V)
section 192 of that Act section 1015 of that Act
Regulation 3, in the the Act of 1967 the Act of 1997
definition of
‘‘reckonable income’’ Chapter 11 of Part I of the Chapter 1 of Part 30
Finance Act, 1972 (No. 19
of 1972)
Regulation 3, the ‘‘the Act of 1967’’ means ‘‘the Act of 1997’’ means
definition of ‘‘the Act of the Income Tax Act, 1967 the Taxes Consolidation
1967’’ (No. 6 of 1967); Act, 1997;
Regulation 10, in section 129 of the Act of section 991 of the Act of
paragraph (1) 1967 1997
Regulation 27 section 8(1) of the Finance section 125 of the Act of
Act, 1979 (No. 11 of 1979) 1997
1493

[No.39.]Taxes Consolidation Act,1997. [1997.] Section 1101.
[ITA67 s472(1)] [ITA67 s353; FA97
s11(2)] [FA88 s42; FA97
s49(4)] [FA80 s45(1) and
(2)] 1494 SCHEDULE 32
Transitional Provisions
Stock of local authorities
1. (1) Any stock under section 87 of the Local Government Act,
1946, issued on or after the 13th day of July, 1955, shall be deemed
to be securities issued under the authority of the Minister for Finance
undersection 36, and that section shall apply accordingly.
(2)Section 49shall apply as if insubsection (1)of that section ‘‘or
paragraph 1of Schedule32’’ were inserted after ‘‘or41’’.
Income tax: exemption from tax of income from certain scholarships
2. Where a payment of income is made before the 6th day of
April, 1998, in respect of a scholarship awarded before the 26th day
of March, 1997,section 193shall apply as if—
(a)insubsection (1)of that section the definitions of ‘‘relevant
body’’ and ‘‘relevant scholarship’’ andparagraph (b)
were deleted, and
(b)subsections (3)and(4)of that section were deleted.
Corporation tax: exemption from tax of profits of Custom House
Docks Development Authority
3. (1) Notwithstanding any provision of the Corporation Tax
Acts, profits arising to the Custom House Docks Development Auth-
ority in any accounting period ending on or after the 17th day of
November, 1986, shall be exempt from corporation tax.
(2)Subparagraph (1)shall be repealed with effect from the 1st
day of May, 1997.
Meaning of ‘‘relevant distributions’’ for the purposes of section 147
in relation to distributions made before 6th April, 1989
4. (1) In this paragraph, ‘‘relevant accounting period’’ has the
same meaning as it had for the purposes of Chapter VI of Part I of
the Finance Act, 1980.
(2) For the purposes ofsection 147, a distribution made by a com-
pany before the 6th day of April, 1989, shall be a relevant distri-
bution if it was made on a day (in this paragraph referred to as ‘‘the
relevant day’’) on or after the 1st day of January, 1981, and if the
total amount of the distributions made by the company on that day
did not exceed an amount (in this paragraph referred to as ‘‘the
amount of the primary fund’’) determined by the formula—
(A−B)+(C−D)+E−F
where, subject to sections 46 to 49 of the Finance Act, 1980—
A is the amount of the company’s income the corporation tax in
respect of which was reduced under section 41 of that Act for the
last relevant accounting period of the company which ended
before the relevant day; but where the distribution was not a dis-
tribution declared by the company in a general meeting held as
an annual general meeting, this definition shall apply as if the

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 preceding reference to the last relevant accounting period which
ended before the relevant day were a reference to the relevant
accounting period of the company in which the distribution was
made,
B is the amount of the corporation tax as reduced under section 41
of that Act in respect of the amount of income mentioned in the
definition of ‘‘A’’,
C is the aggregate of the amounts of the company’s income the cor-
poration tax in respect of which was reduced under section 41 of
that Act for all relevant accounting periods of the company pre-
ceding the relevant accounting period which is to be taken into
account in the definition of ‘‘A’’,
D is the aggregate of the amounts of the corporation tax as reduced
under section 41 of that Act in respect of the amounts of income
comprised in the aggregate amount calculated in accordance with
the definition of ‘‘C’’,
E is the aggregate amount of the relevant distributions received by
the company at any time before the relevant day; but a relevant
distribution shall not be included within this definition if the distri-
bution, together with the tax credit to which the company is
entitled in respect of it, is franked investment income against
which relief was given under section 15(4), 25 or 26 of the Corpor-
ation Tax Act, 1976, and which relief was not subsequently with-
drawn under those sections, and
F is the aggregate amount of the relevant distributions made by the
company on any day earlier than the relevant day.
(3) Where in relation to a company the amount of the primary
fund was greater than zero but was less than the total amount of the
distributions made by the company on the relevant day, a distri-
bution made by the company on that day shall be treated as if it
consisted of 2 distributions, being respectively—
(a) a relevant distribution equal to such an amount as bears to
the whole of the distribution the same proportion as the
amount of the primary fund bore to the total amount of
the distributions so made on that day, and
(b) a separate distribution which is not a relevant distribution
and which consisted of the balance of the distribution.
Distributions out of certain income of manufacturing companies —
provisions relating to relief for certain losses and capital allowances
carried forward from 1975-76
5. (1) In this paragraph, ‘‘relevant accounting period’’ has the
same meaning as inPart 14.
(2) Where for any accounting period of a company which
coincides with or includes a relevant accounting period—
(a) the corporation tax referable to the income of the company
from the sale in the course of a trade of goods for the
relevant accounting period is to be reduced undersection
448, and
1495
[FA80 s47; FA88
s32(3) and Sch2
PtII pars1(c) and
(d); FA95 s54(2)
and Sch4 PtII
pars2(1)(a) and (b);
FA97 s59(2) and
Sch6 PtII par2] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32
1496 (b) a reduced relief underparagraph 16is allowed as respects
the accounting period in accordance withsubparagraph
(3)(ii)of that paragraph,
then—
(i) the amount of the company’s income which apart from this
clause is to be taken into account in the definitions in
section 147(1)of ‘‘A’’, in respect of the relevant account-
ing period, and of ‘‘R’’, in respect of the accounting per-
iod, shall be reduced as follows—
(I) as respects A, by the amount determined by the
formula—
G×S×H
J
where—
G is the amount of the reduction in the relief in
respect of the trade for the accounting period
underparagraph 16(3)(ii),
H is the income of the accounting period within the
meaning ofparagraph 18(4)(a)(i),
J is the relevant corporation tax for the accounting
period within the meaning ofparagraph 16, and
S is—
(A) as respects accounting periods beginning
before the 1st day of April, 1997, 38/28, and
(B) as respects accounting periods beginning on
or after that date, 36/26,
and
(II) as respects R, by an amount determined by the
formula—
V×H
J
where—
H and J have the same meanings respectively as in
subclause (I), and
V is the amount of the relief for the accounting per-
iod underparagraph 16before any reduction in
that relief undersubparagraph (3)(ii)of that para-
graph, and
(ii) the amount of the corporation tax (as reduced undersection
448) which apart from this clause is to be taken into
account in the definition of ‘‘B’’ insection 147(1)in
respect of the relevant accounting period shall be reduced
by an amount determined by the formula—

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 G×S
where—
G has the same meaning as inclause (i)(I), and
S is—
(I) as respects accounting periods beginning before
the 1st day of April, 1997, 10/28, and
(II) as respects accounting periods beginning on or
after that date, 10/26.
(3) (a) For the purposes ofsubparagraph (2), where an account-
ing period begins before the 1st day of April, 1997, and
ends on or after that day, it shall be divided into one
part beginning on the day on which the accounting period
begins and ending on the 31st day of March, 1997, and
another part beginning on the 1st day of April, 1997, and
ending on the day on which the accounting period ends,
and both parts shall be treated as if they were separate
accounting periods.
(b) Where underclause (a)a part of an accounting period is
treated as a separate accounting period, the corporation
tax charged for the part which is so treated shall, in so
far as it is affected by the rate of corporation tax which
is taken to have been charged, be taken for the purposes
of this paragraph to be the corporation tax which would
have been charged if that part were a separate accounting
period.
Distributions out of certain income of manufacturing companies —
provisions relating to relief for certain corporation profits tax losses
6. (1) In this paragraph, ‘‘relevant accounting period’’ has the
same meaning as inPart 14.
(2) Where for any accounting period of a company which
coincides with or includes a relevant accounting period—
(a) the corporation tax referable to the income of the company
from the sale in the course of the trade of goods for the
relevant accounting period is to be reduced undersection
448, and
(b) a reduced relief underparagraph 18is allowed as respects
the accounting period in accordance withsubparagraph
(4)(c)of that paragraph,
then—
(i) the amount of the company’s income which apart from this
clause is to be taken into account in the definition in
section 147(1)of ‘‘A’’, in respect of the relevant account-
ing period, and of ‘‘R’’, in respect of the accounting per-
iod, shall be reduced as follows—
(I) as respects A, by an amount determined by the
formula—
1497
[FA80 s48; FA88
s32(3) and Sch2
PtII pars1(e) and
(f); FA95 s54(2)
and Sch4 PtII
par2(1)(c); FA97
s59(2) and Sch6
PtII par2] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32
1498K×L
M×N P
where—
K is the amount of the relief for the accounting per-
iod underparagraph 18before any reduction in
that relief undersubparagraph (4)(c)of that
paragraph,
L is the income of the accounting period within the
meaning ofparagraph 18(4)(a)(i),
M is the relevant corporation tax within the mean-
ing ofparagraph 16in relation to the accounting
period,
N is the income from the sale of goods within the
meaning ofsection 448for the relevant accounting
period, and
P is the total income brought into charge to corpor-
ation tax for the accounting period, and
(II) as respects R, by an amount determined by the
formula—
K×L
M
where—
K, L, and M have the same meanings as insubclause
(I), and
(ii) the amount of the corporation tax (as reduced undersection
448) which apart from this clause is to be taken into
account in the definition of ‘‘B’’ insection 147(1)in
respect of the relevant accounting period shall be reduced
by an amount determined by the formula—
Q×S
where—
Q is the amount of the reduction in the relief for the
accounting period underparagraph 18(4)(c), and
S is—
(a) as respects accounting periods beginning before
the 1st day of April, 1997, 10/28, and
(b) as respects accounting periods beginning on or
after that date, 10/26.
(3) (a) For the purposes ofsubparagraph (2), where an account-
ing period begins before the 1st day of April, 1997, and
ends on or after that day, it shall be divided into one
part beginning on the day on which the accounting period
begins and ending on the 31st day of March, 1997, and
another part beginning on the 1st day of April, 1997, and

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 ending on the day on which the accounting period ends,
and both parts shall be treated as if they were separate
accounting periods.
(b) Where underclause (a)a part of an accounting period is
treated as a separate accounting period, the corporation
tax charged for the part which is so treated shall, in so
far as it is affected by the rate of corporation tax which
is taken to have been charged, be taken for the purposes
of this paragraph to be the corporation tax which would
have been charged if that part were a separate accounting
period.
Approved share option schemes
7. (1) This paragraph shall apply where on or after the 6th day of
April, 1986, an individual obtains a right to acquire shares in a body
corporate—
(a) by reason of his or her office or employment as a director
or employee of that or any other body corporate, and
(b) in accordance with the provisions of a scheme approved
under the Second Schedule to the Finance Act, 1986;
but neither this paragraph nor that Schedule shall apply in relation
to such a right obtained on or after the 29th day of January, 1992.
(2) Where the individual exercises the right in accordance with the
provisions of the scheme referred to insubparagraph (1)(b)at a time
when it is approved under the Second Schedule to the Finance Act,
1986—
(a) income tax shall not be chargeable undersection 128in
respect of any gain realised by the exercise of the right,
and
(b) if but for this clausesection 547would apply, that section
shall not apply in calculating the consideration for the
acquisition of the shares by the individual or for any cor-
responding disposal of them to the individual.
(3) (a) This paragraph shall apply notwithstanding that the
Second Schedule to the Finance Act, 1986, is not re-
enacted by this Act, and accordingly this Act shall apply
with any modifications necessary to give effect to this
paragraph.
(b) Without prejudice to the generality ofclause (a),sections
1052,1053and1054shall apply for the purposes of that
clause as if inSchedule 29there were included inColumn
2a reference to paragraph 14 of the Second Schedule to
the Finance Act, 1986.
Interest on certain loans: relief from corporation tax
8. (1) For the purposes of this paragraph, ‘‘permanent loan’’ means
a loan of a permanent character made under an agreement entered
into before the 27th day of November, 1975, and which under the
agreement is—
(a) secured by mortgage or debenture or otherwise on the assets
or income of a company, and
1499
[FA86 s10(1) and
(2)(a) and (b);
FA92 s12] [CTA76 s177] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32
[FA81 s25; FA86
s51(2); FA88 s49] [FA81 s26; FA84
s39; FA89 s17] 1500 (b) if subject to repayment, is subject to repayment at not less
than 3 months’ notice;
but a loan shall not be regarded as a permanent loan for the purposes
of this paragraph if under the terms of the loan agreement the rate
of interest or other conditions of the loan may be altered during the
currency of the loan.
(2) Where for the purposes of corporation tax the income of a
company for an accounting period includes interest payable in
respect of a permanent loan, the company shall be entitled on a due
claim to have its liability to corporation tax for the accounting period
reduced as provided bysubparagraph (3).
(3) The reduction referred to insubparagraph (2)shall be deter-
mined in accordance withsubparagraph (4)(apart fromclause (c))
ofparagraph 18as if the interest were a relevant deficiency within
the meaning ofsubparagraph (1)of that paragraph.
(4) Where in computing the reduction provided for bysubpara-
graph (3)the appropriate amount as determined in accordance with
paragraph 18(4)(a)(ii)is the company’s income for the accounting
period, the excess of such interest as is mentioned insubparagraph
(2)for the accounting period over that income shall for the purposes
of this paragraph be aggregated with the amount of any such interest
for the next accounting period and relief shall be allowed for that
period in respect of the aggregated amount and, if that aggregated
amount exceeds the income for that period, the excess shall be car-
ried forward to the accounting period succeeding that period and so
on.
(5) A claim under this paragraph shall be made to the inspector
within 2 years from the end of the accounting period.
Allowance for certain capital expenditure on construction of multi-
storey car-parks
9. (1) In this paragraph—
‘‘multi-storey car-park’’ means a building or structure consisting of 3
or more storeys wholly in use for the purpose of providing, for
members of the public generally without preference for any particu-
lar class of person, on payment of an appropriate charge, parking
space for mechanically propelled vehicles;
‘‘relevant expenditure’’ means capital expenditure incurred on or
after the 29th day of January, 1981, and before the 1st day of April,
1991, on the construction of a multi-storey car-park.
(2) The provisions of the Tax Acts (other thansection 273) relat-
ing to the making of allowances or charges in respect of capital
expenditure on the construction of an industrial building or structure
shall apply to relevant expenditure as if it were expenditure incurred
on the construction of a building or structure in respect of which an
allowance is to be made for the purposes of income tax or corpor-
ation tax, as the case may be, underPart 9by reason of its use for a
purpose specified insection 268(1)(a).
Allowance for certain capital expenditure on roads, bridges, etc
10. (1) In this paragraph—

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 ‘‘chargeable period’’ and ‘‘chargeable period or its basis period’’
have the same meanings as insection 321(2);
‘‘qualifying period’’ means the period commencing on the 29th day
of January, 1981, and ending on the 31st day of March, 1989, or, in
the case of a relevant agreement entered into on or after the 6th day
of April, 1987, ending on the 31st day of March, 1992;
‘‘relevant agreement’’ means an agreement between a road authority
and another person under section 9 of the Local Government (Toll
Roads) Act, 1979, by virtue of which that other person incurs rel-
evant expenditure;
‘‘relevant expenditure’’ means capital expenditure incurred by a per-
son during the qualifying period by virtue of a relevant agreement
including, in the case of a relevant agreement entered into on or
after the 6th day of April, 1987, interest on money borrowed to meet
such capital expenditure, but does not include any expenditure in
respect of which any person is entitled to a deduction, relief or allow-
ance under any provision of the Tax Acts other than this paragraph;
‘‘relevant income’’ means income which arises to a person by virtue
of a relevant agreement;
‘‘road authority’’ has the meaning assigned to it by the Local
Government (Toll Roads) Act, 1979.
(2) Where in the case of a relevant agreement entered into before
the 6th day of April, 1987, a person, having made a claim in that
behalf, proves as respects a chargeable period that relevant income
was receivable by such person in that chargeable period or its basis
period and that such person has incurred relevant expenditure, then,
such person shall, subject tosubparagraph (4), be entitled, for the
purpose only of ascertaining the amount (if any) of relevant income
on which such person is to be charged to tax for the chargeable per-
iod, to an allowance equal to 50 per cent of the relevant expenditure;
but the aggregate amount of all allowances made to that person
under this subparagraph in relation to any relevant expenditure shall
not exceed an amount equal to 50 per cent of that expenditure.
(3) Where a person, having made a claim in that behalf, proves as
respects a chargeable period that relevant income was receivable and
relevant expenditure was incurred by such person in the chargeable
period or its basis period by virtue of the relevant agreement (being
a relevant agreement entered into on or after the 6th day of April,
1987) giving rise to the relevant income, such person shall, subject to
subparagraph (4), be entitled, for the purpose only of ascertaining
the amount (if any) of that relevant income on which such person is
to be charged to tax—
(a) to an allowance equal to 50 per cent of the relevant expendi-
ture for that chargeable period, and
(b) to an allowance equal to 10 per cent of the relevant expendi-
ture for each of the next 5 chargeable periods in which
that relevant income is receivable by such person;
and, for the purposes of this subparagraph, all relevant expenditure
so incurred before the chargeable period in which relevant income
is first receivable shall be deemed to have been incurred on the first
day of that chargeable period.
1501

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32
[FA86 s42] [FA86 s44] [FA86 s45] 1502 (4) Where an allowance to which a person is entitled under this
paragraph cannot be given full effect for any chargeable period by
reason of a want or deficiency of relevant income, then (so long as
the person has relevant income), the amount unallowed shall be car-
ried forward to the succeeding chargeable period and the amount so
carried forward shall be treated for the purposes of this paragraph,
including any further application of this subparagraph, as the amount
of a corresponding allowance for that period.
(5) An appeal to the Appeal Commissioners shall lie on any ques-
tion arising under this paragraph in the like manner as an appeal
would lie against an assessment to income tax or corporation tax,
and the provisions of the Tax Acts relating to appeals shall apply
accordingly.
Urban Renewal Scheme, 1986 — capital allowances in relation to
certain commercial premises in designated areas other than the
Custom House Docks Area
11. Where but for the repeal by this Act of the repealed enact-
ments an allowance or charge would be made to or on a person for
any chargeable period under Chapter II of Part XV, or Chapter I of
Part XVI, of the Income Tax Act, 1967 (including any such allowance
as increased under section 25 of the Finance Act, 1978), by virtue of
section 42 of the Finance Act, 1986 (in so far as that section applied
to areas other than the Custom House Docks Area within the mean-
ing section 41 of that Act), then, notwithstanding that that section as
it so applied is not re-enacted by this Act, that allowance or charge
shall be made to or on the person under this Act, and accordingly
this Act shall apply with any modifications necessary to give effect
to this paragraph.
Urban Renewal Scheme, 1986 — allowances to owner-occupiers in
relation to certain residential premises in designated areas other than
the Custom House Docks Area
12. Where but for the repeal by this Act of the repealed enact-
ments a person would, in the computation of his or her total income
for any year of assessment, be entitled to a deduction under section
44 of the Finance Act, 1986 (in so far as that section applied to areas
other than the Custom House Docks Area within the meaning of
section 41 of that Act), then, notwithstanding that that section as it
so applied is not re-enacted by this Act, the person shall be entitled
to that deduction for that year of assessment under this Act, and
accordingly this Act shall apply with any modifications necessary to
give effect to this paragraph.
Urban Renewal Scheme, 1986 — double rent allowance in relation
to certain premises in designated areas other than the Custom House
Docks Area
13. Where but for the repeal by this Act of the repealed enact-
ments a further deduction on account of rent in respect of any prem-
ises would be made to a person under section 45 of the Finance Act,
1986 (in so far as that section applied to areas other than the Custom
House Docks Area within the meaning of section 41 of that Act), in
the computation of the amount of the profits or gains of the person’s
trade or profession, then, notwithstanding that that section as it so
applied is not re-enacted by this Act, that further deduction shall be
made to the person under this Act, and accordingly this Act shall
apply with any modifications necessary to give effect to this
paragraph.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 Rented residential accommodation — deduction for expenditure
incurred on construction, conversion or refurbishment in areas other
than the Custom House Docks Area
14. Where, in computing the amount of a surplus or deficiency in
respect of rent from any premises in any area other than the Custom
House Docks Area (within the meaning of section 41 of the Finance
Act, 1986), a person would, but for the repeal by this Act of the
repealed enactments—
(a) be entitled to a deduction, or
(b) be deemed to have received an amount as rent,
under—
(i) section 23 of the Finance Act, 1981,
(ii) section 23 of the Finance Act, 1981, as applied by virtue of
section 24 of that Act or section 22 of the Finance Act,
1985, or
(iii) section 23 of the Finance Act, 1981, as applied by section 21
of the Finance Act, 1985,
in so far as those sections applied to areas other than the Custom
House Docks Area (within the meaning of section 41 of the Finance
Act, 1986), then, notwithstanding that those sections as they so
applied are not re-enacted by this Act, the person shall be entitled
to that deduction or be deemed to have received that amount as rent,
as the case may be, under this Act, and accordingly this Act shall
apply with any modifications necessary to give effect to this
paragraph.
Loss relief, etc
15. The substitution of this Act for the corresponding enactments
repealed by this Act shall not alter the effect of any provision
enacted before this Act (whether or not there is a corresponding
provision in this Act) in so far as it determines whether and to what
extent—
(a) losses or expenditure incurred in, or an excess of deficienc-
ies over surpluses in, or other amounts referable to, a
year of assessment or accounting period earlier than a
year of assessment or accounting period to which this Act
applies may be taken into account for any tax purposes
in a year of assessment or accounting period to which this
Act applies, or
(b) losses or expenditure incurred in, or an excess of deficienc-
ies over surpluses in, or other amounts referable to, a
year of assessment or accounting period to which this Act
applies may be taken into account for any tax purposes
in a year of assessment or accounting period earlier than
a year of assessment or accounting period to which this
Act applies.
1503[FA81 s23 and s24;
FA85 s21 and s22;
FA91 s56, s57 and
s58] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32[CTA76 s182 (apart
from clauses (b)
and (c) of proviso
to (3)); FA80
s47(1); FA97 s59
and Sch6 PtI
par2(1) and (3)] 1504 Relief in respect of unrelieved losses and capital allowances carried
forward from the year 1975-76
16. (1) In this paragraph—
‘‘relevant amount’’, in relation to a company, means the aggregate
of the following amounts—
(a) such part of a loss, including any amount to be treated as a
loss under section 316 of the Income Tax Act, 1967,
incurred by the company in a trade before the date on
which the company comes within the charge to corpor-
ation tax in respect of the trade and which, but for the
Corporation Tax Act, 1976, could have been carried for-
ward to the year 1976-77 under section 309 of the Income
Tax Act, 1967, and
(b) such part of any capital allowance to which the company
which carries on the trade was entitled in charging the
profits or gains of the trade for years before the year
1976-77 and to which effect has not been given by means
of relief before that year;
‘‘relevant corporation tax’’, in relation to an accounting period,
means the corporation tax (other than an amount which by virtue of
sections 239,241,440and441is to be treated as corporation tax of
an accounting period) which, apart from this paragraph,paragraph
18andsection 448, would be chargeable for the accounting period
exclusive of the corporation tax chargeable on the part of the com-
pany’s profits attributable to chargeable gains for that period, and
that part shall be taken to be the amount brought into the company’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.
(2) Relief, as provided insubparagraph (3), shall be allowed in
respect of a relevant amount against corporation tax payable by the
company and such relief shall be given as far as possible from the
tax payable for the first accounting period for which the company is
within the charge to corporation tax in respect of the trade and, in
so far as it cannot be so given, from the tax payable for the next
accounting period and so on.
(3) The relief for an accounting period shall be an amount calcu-
lated by applying to that part of the relevant amount in respect of
which relief from tax has not been allowed a rate equal to—
(a) as respects accounting periods beginning before the 1st day
of April, 1997, 23 per cent, and
(b) as respects accounting periods beginning on or after that
date, the standard credit rate for the year of assessment
in which the accounting period ends;
but—
(i) the amount to which that rate is applied shall not exceed the
amount of income from the trade included in chargeable
profits for the accounting period reduced by the amount,
if any, included in charges on income paid by the com-
pany in the accounting period in respect of payments

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 made wholly and exclusively for the purposes of the
trade, and
(ii) where the corporation tax payable by the company for an
accounting period is reduced by virtue of a claim under
section 448(2), the relief to be given under this paragraph
for the accounting period shall be reduced in the same
proportion as the corporation tax payable by the com-
pany for the accounting period in so far as it is attribu-
table to the income from the trade is so reduced; and the
corporation tax attributable to the income from the trade
shall be an amount equal to the same proportion of the
relevant corporation tax for the accounting period as the
income from the trade for the accounting period bears to
the total income brought into charge to corporation tax.
(4) Relief under this paragraph shall not be allowed against corpor-
ation tax payable by a company which by virtue of agreements between
the Government and the Government of the United Kingdom in respect
of double income tax was entitled to exemption from income tax for the
year 1975-76 in respect of income arising in the State.
(5) For the purposes of this paragraph, where an accounting per-
iod begins before the 1st day of April, 1997, and ends on or after
that day, it shall be divided into one part beginning on the day on
which the accounting period begins and ending on the 31st day of
March, 1997, and another part beginning on the 1st day of April,
1997, and ending on the day on which the accounting period ends,
and both parts shall be treated as if they were separate accounting
periods.
Relief in respect of losses or deficiencies within Case IV or V of
Schedule D
17. (1) Where—
(a) a company was entitled to relief under section 89 or 310 of
the Income Tax Act, 1967, or would have been entitled
to relief under section 310 of that Act if section 237(5) of
that Act had not been enacted, for the year 1975-76 or
an earlier year of assessment in respect of a loss within
Case IV of Schedule D or a deficiency or an excess of
deficiencies within Case V of Schedule D, with the
addition of any associated capital allowances in each case,
and
(b) because of an insufficiency of income of the description con-
cerned, relief could not be fully granted to the company
under those sections for any of those years of assessment,
then, the unrelieved amount of loss, deficiency or excess of deficienc-
ies (with the addition of any unrelieved associated capital
allowances), as the case may be, shall be treated as if it were a loss
in a trade carried on by a company and, if the company so requires,
may be relieved underparagraph 16against income of the same
description of the company within the charge to corporation tax as
if that income were income of the same trade, and that paragraph
shall apply accordingly with any necessary modifications.
(2) Notwithstandingsubparagraph (1)—
(a) a loss within Case IV of Schedule D, with the addition of
any associated capital allowances, shall be relieved under
1505
[CTA76 s183] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32
[CTA76 s174(3)-
proviso and s184
(apart from clauses
(i), (ii) and (iii) of
proviso to (3));
FA80 s48(1); FA97
s59 and Sch6 PtI
par2] 1506 this paragraph only against income of the company
chargeable to corporation tax under Case IV of Schedule
D,
(b) a deficiency or an excess of deficiencies within Case V of
Schedule D, with the addition of any associated capital
allowances, shall be relieved only against income of the
company chargeable to corporation tax under Case V of
Schedule D, and
(c) so much of any deficiency or so much of any amount treated
as a loss as, under section 62 of the Finance Act, 1974,
could not have been carried forward or set against profits
or gains for income tax purposes if that tax had continued
shall be treated as not being a deficiency or loss for the
purposes of this paragraph.
Relief in respect of corporation profits tax losses
18. (1) In this paragraph, ‘‘relevant deficiency’’, in relation to a
company, means, subject tosubparagraph (2), the aggregate of the
following amounts—
(a) the total of the amounts which under section 25 of the Fin-
ance Act, 1964, could (on the assumption that for corpor-
ation profits tax purposes an accounting period of the
company ended on the 5th day of April, 1976, and a new
accounting period commenced on the 6th day of April,
1976, and the enactments in relation to corporation pro-
fits tax mentioned in the Third Schedule to the Corpor-
ation Tax Act, 1976, had not been repealed) have been
deducted from or set off against profits of the company’s
business in an accounting period commencing on the 6th
day of April, 1976, and
(b) the total of the amounts by which under subsections (1) and
(3) of section 181 of the Corporation Tax Act, 1976,
losses and allowances in respect of capital expenditure
were reduced for the purposes of corporation tax;
but any loss or any excess of deficiencies over surpluses which if such
loss or excess were a profit or an excess of surpluses over deficiencies
would be chargeable to corporation tax on the company for the
accounting period shall not be taken into account for the purposes
ofclause (a).
(2) Where for any accounting period an election was made under
section 174(3) of the Corporation Tax Act, 1976, all amounts which
under section 25 of the Finance Act, 1964, could be deducted from
or set off against profits of the company’s trade or business for that
accounting period, computed without regard to section 174(3) of the
Corporation Tax Acts, 1976, shall be deemed to have been so
deducted or set off and shall not be included in the computation of
any relevant deficiency for the purposes of this paragraph.
(3) (a) Subject toclause (b), relief as provided insubparagraph
(4)shall be allowed in respect of a relevant deficiency
against corporation tax payable by the company and such
relief shall be given as far as possible from the tax pay-
able for the first accounting period for which the com-
pany is within the charge to corporation tax and, in so far
as it cannot be so given, from the tax payable for the next
accounting period and so on.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 (b) Relief shall not be allowed against corporation tax payable
for any accounting period against the profits of which (if
the Corporation Tax Act, 1976, had not been enacted and
if the enactments in relation to corporation profits tax
referred to in the Third Schedule of that Act had not
been repealed) a loss incurred before the 6th day of
April, 1976, could not be set off under section 25 of the
Finance Act, 1964.
(4) (a) For the purposes of this subparagraph—
(i) 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’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
(ii) the appropriate amount shall be the smaller of the
amount of the relevant deficiency in respect of which
relief has not been allowed and the amount of the
company’s income for the accounting period.
(b) Subject toclause (c), relief for an accounting period shall
be an amount determined by the formula—
(A−B)−(C−D)
where—
A is the excess of the amount of corporation tax
which, apart fromparagraph 16, this paragraph and
section 448, is chargeable for the accounting period,
B is an amount determined by applying a rate equal
to—
(a) as respects accounting periods beginning
before the 1st day of April, 1997, 23 per
cent, and
(b) as respects accounting periods beginning on
or after that date, the standard credit rate
for the year of assessment in which the
accounting period ends,
to the amount of the company’s income for the
accounting period,
C is the excess of the amount of corporation tax which,
apart fromparagraph 16, this paragraph andsection
448,would be chargeable for the accounting period
if the amount of the company’s income for the
accounting period were reduced by the appropriate
amount, and
1507

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32
1508 D is an amount determined by applying a rate equal
to—
(a) as respects accounting periods beginning
before the 1st day of April, 1997, 23 per
cent, and
(b) as respects accounting periods beginning on
or after that date, the standard credit rate
for the year of assessment in which the
accounting period ends,
to the amount of the company’s income for the
accounting period as reduced by the appropriate
amount.
(c) Notwithstandingclause (b), where the corporation tax pay-
able by a company for an accounting period is reduced
by virtue of a claim undersection 448(2), the amount of
relief to be allowed under the preceding provisions of this
paragraph shall be reduced in the same proportion which
the amount by which the corporation tax referable to the
income from the sale of goods (within the meaning of
section 448) for that accounting period is so reduced bears
to the relevant corporation tax, and for the purposes of
this clause ‘‘relevant corporation tax’’ has the same
meaning as inparagraph 16.
(5) (a)Subparagraphs (3)and(4)shall not apply to a company
which by virtue of agreements between the Government
and the Government of the United Kingdom in respect
of double income tax was entitled to exemption from
income tax for the year 1975-76 in respect of income aris-
ing in the State; but in such a case the relevant deficiency
shall, subject toclause (b), be set off against income com-
ing within the charge to corporation tax for the account-
ing period commencing on the 6th day of April, 1976,
and, in so far as the relevant deficiency cannot be so set
off, it shall be set off against income coming within the
charge to corporation tax for the next accounting period
and so on.
(b) A relevant deficiency shall not be set off underclause (a)
against income arising in any accounting period against
the profits of which (if the Corporation Tax Act, 1976,
had not been enacted and if the enactments in relation to
corporation profits tax mentioned in the Third Schedule
to that Act had not been repealed) a loss incurred before
the 6th day of April, 1976, could not be set off under
section 25 of the Finance Act, 1964.
(6) (a) For the purposes of this paragraph, where an accounting
period begins before the 1st day of April, 1997, and ends
on or after that day, it shall be divided into one part
beginning on the day on which the accounting period
begins and ending on the 31st day of March, 1997, and
another part beginning on the 1st day of April, 1997, and
ending on the day on which the accounting period ends,
and both parts shall be treated as separate accounting
periods.
(b) Where underclause (a)a part of an accounting period is
treated as a separate accounting period, the corporation
tax charged for the part which is so treated shall, in so

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 far as it is affected by the rate of corporation tax which
is taken to have been charged, be taken for the purposes
of this paragraph to be the corporation tax which would
have been charged if that part were a separate accounting
period.
Capital gains tax losses accruing before 6th April, 1976
19. Any losses of a company allowable against chargeable gains
for the purposes of capital gains tax in respect of the year of assess-
ment 1974-75 or 1975-76, in so far as they cannot be allowed against
chargeable gains for the purposes of that tax, shall be treated for the
purposes of corporation tax as if they were allowable losses accruing
to the company while within the charge to corporation tax.
Income tax: relief for expenditure on certain buildings in certain
areas
20. (1) Where a person is immediately before the commencement
of this Act, entitled to have a deduction made from his or her total
income under section 4 of the Finance Act, 1989, he or she shall not
cease to be so entitled by reason only of the repeal by this Act of
that section, notwithstanding that that section is not re-enacted by
this Act, and accordingly this Act shall apply with any modifications
necessary to give effect to any such entitlements.
(2) Notwithstanding the repeal by this Act of section 4 of the Fin-
ance Act, 1989, relief given under that section, whether before or
after the passing of this Act, may be withdrawn in accordance with
subsection (4) of that section where the circumstances set out in that
subsection apply; and accordingly this Act shall apply with any modi-
fications necessary to give effect to such withdrawal.
Income tax: relief for income accumulated under trusts
21. (1) Where—
(a) in pursuance of any will or settlement any income arising
from any fund is accumulated for the benefit of any per-
son contingently on that person attaining a specified age
or marrying, and
(b) the aggregate amount (in this paragraph referred to as ‘‘the
aggregate yearly income’’) in any year of assessment of—
(i) that income,
(ii) the income from any other fund subject to the like
trusts for accumulation, and
(iii) the total income of that person from all sources,
is of such an amount only as would entitle an individual
either to total exemption from income tax or to relief
from income tax,
then, that person shall, on making a claim for the purpose within 6
years after the end of the year of assessment in which the contin-
gency happens, be entitled, on proof of the claim in the manner pre-
scribed bysubsections (3)and(4)ofsection 459andparagraph 8of
Schedule 28, to have repaid to him or her on account of the income
1509
[CTA76 s175] [FA89 s4(1) to (6);
FA93 s31] [ITA67 s154; FA73
s5] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32
[FA96 s31(2)(a), (3)
and (4); FA97
s30(2)] 1510 tax which has been paid in respect of the income during the period
of accumulation a sum equal to the aggregate amount of relief to
which he or she would have been entitled if his or her total income
from all sources for each of the several years of that period had been
equal to the aggregate yearly income for that year; but in calculating
that sum a deduction shall be made in respect of any relief already
received.
(2) For the purposes ofsubparagraph (1), no account shall be
taken of any income tax paid in respect of income for a year of
assessment beginning after the year 1972-73 or of any relief to which
a person would have been entitled for such a year of assessment in
the circumstances mentioned insubparagraph (1).
Relief for investment in films in respect of certain sums
22. (1) Where an allowable investor company has in the period of
12 months ending on the 22nd day of January, 1997, made a relevant
investment, the reference insection 481(4)to £8,000,000 shall, in
respect of that period, be construed as a reference to £6,000,000 or,
where the company has in that period paid a sum of money to which
subparagraph (2)applies, as a reference to £6,000,000 less the
amount or, if there are more amounts than one, the aggregate of
such amounts of such sums of money.
(2) The amendments effected to section 35 of the Finance Act,
1987, by section 31(1) of the Finance Act, 1996, shall not apply as
respects a sum of money paid on or after the 23rd day of January,
1996, and on or before the 31st day of March, 1996, where the sum
of money is paid in respect of shares in a qualifying company, and—
(a) the Minister for Arts, Culture and the Gaeltacht had
received before the 23rd day of January, 1996, an appli-
cation in writing to give a certificate to the company stat-
ing, in relation to a film to be produced by the company,
that the film is a qualifying film, and
(b) a certificate given by the Minister to the company after the
23rd day of January, 1996, includes a statement that the
Minister had received that application before that date.
(3) Where a sum of money is a sum of money—
(a) to which the amendments effected to section 35 of the Fin-
ance Act, 1987, by section 31(1) of the Finance Act, 1996,
do not apply by virtue ofsubparagraph (2),or
(b) which is paid before the 23rd day of January, 1996,
the provisions of section 35 of the Finance Act, 1987, which were
in force immediately before the 23rd day of January, 1996, (in this
paragraph referred to as ‘‘the former provisions’’) shall, subject to
subparagraph (4), continue to apply to that sum of money.
(4) Where the sum of money referred to insubparagraph (3)is a
sum of money paid on or after the 6th day of April, 1995, or is a sum
of money to whichsubparagraph (2)applies, and the sum of money
is used for the purpose of enabling the qualifying company to
produce a qualifying film in respect of which an application (to give
a certificate under subsection (1A) of the former provisions) had not
been received by the Minister before the 23rd day of January, 1996,
the former provisions shall apply as if—

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 (i) subsection (2) of the former provisions was amended by the
substitution for ‘‘a deduction of the amount of that
investment’’ of ‘‘a deduction of an amount equal to 80
per cent of that investment’’, and
(ii) subsection (3A) of the former provisions was amended by
the substitution for ‘‘a deduction of the amount of that
investment’’ of ‘‘a deduction of an amount equal to 80
per cent of that investment’’.
(5)Subparagraphs (2)to(4)shall apply notwithstanding that the
former provisions are not re-enacted by this Act and shall be con-
strued together with the former provisions, and accordingly this Act
shall apply with any modifications necessary to give effect to those
subparagraphs.
(6) As respects a relevant investment made before the 26th day
of March, 1997,section 481shall apply as if insubsection (4)(b)(i)of
that section the reference to £3,000,000 were a reference to
£2,000,000.
(7) As respects the 12 months period ending on the 22nd day of
January, 1996,section 481shall apply as if insubsection (4)(b)(ii)of
that section the reference to £3,000,000 were a reference to
£2,000,000.
(8) In relation to a film in respect of which the Minister has
received an application before the 26th day of March, 1997, to enable
the Minister to consider whether a certificate should be given under
subsection (2)ofsection 481, that subsection shall apply as ifpara-
graph (c)(ii)(II)of that subsection were deleted.
Farming: application of section 658 in relation to expenditure
incurred before 27th January, 1994
23. (1)Section 658shall apply—
(a) as respects capital expenditure incurred before the 27th day
of January, 1994, as if the following subsections were sub-
stituted forsubsection (2)of that section:
‘‘(2) (a) Where a person to whom this section applies
incurs, for the purpose of a trade of farming
land occupied by such person, any capital
expenditure on the construction of farm
buildings (excluding a building or part of a
building used as a dwelling), fences, road-
ways, holding yards, drains or land recla-
mation or other works, there shall, subject to
paragraph (b), be made to such person during
a writing-down period of 10 years beginning
with the chargeable period related to that
expenditure, writing-down allowances (in this
section referred to as ‘farm buildings
allowances’) in respect of that expenditure,
and such allowances shall be made in taxing
the trade.
(b) The farm buildings allowance to be granted
for any chargeable period shall, subject to
paragraphs (c)and(d), be increased by such
amount as is specified in the claim for the
1511
[FA74 s22(2); FA77
s14; FA82 s16;
FA88 s52(1)(a);
FA89 s15; FA90
s77; FA91 s25(a)] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32
1512 allowance by the person to whom the allow-
ance is to be made and, in relation to a case
in which this paragraph has applied, any refer-
ence in the Tax Acts to a farm buildings
allowance made under this section shall be
construed as a reference to that allowance as
increased under this paragraph.
(c) The maximum farm buildings allowance to be
made under this section by means of an allow-
ance increased underparagraph (b)—
(i) in relation to capital expenditure incurred
before the 1st day of April, 1989, shall
not for any chargeable period exceed 30
per cent of that capital expenditure,
(ii) in relation to capital expenditure incurred
on or after the 1st day of April, 1989, and
before the 1st day of April, 1991, whether
claimed in one chargeable period or
more than one such period, shall not in
the aggregate exceed 50 per cent of that
capital expenditure, and
(iii) in relation to capital expenditure incurred
on or after the 1st day of April, 1991, and
before the 1st day of April, 1992, whether
claimed in one chargeable period or
more than one such period, shall not in
the aggregate exceed 25 per cent of that
capital expenditure.
(d) Notwithstandingparagraph (c)(iii), the
maximum farm buildings allowances to be
made under this section by means of an allow-
ance increased underparagraph (b)in
relation to capital expenditure incurred—
(i) on or after the 1st day of April, 1991, and
before the 1st day of April, 1993,
(ii) for the purposes of the control of farm-
yard pollution, and
(iii) on works in respect of which grant-aid has
been paid under—
(I) the programme, as amended, known
as ‘the Farm Improvement Pro-
gramme’ implemented by the Mini-
ster for Agriculture and Food pursu-
ant to Council Regulation (EEC)
No. 797/85 of 12 March 1985
1,or
(II) the scheme known as ‘the Scheme of
Investment Aid for the Control of
Farmyard Pollution’ implemented
by the Minister for Agriculture and
Food pursuant to an operational
1O.J. No. L 93 of 30.3.1985, p.1.

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 programme under Council Regu-
lation (EEC) No. 2052/88 of 24 June
1988
1,
whether claimed for one chargeable per-
iod or more than one such period, shall
not in the aggregate exceed 50 per cent
of that capital expenditure.
(e) The reference inparagraph (a)to roadways,
holding yards, drains or land reclamation shall
apply only as respects expenditure incurred
on or after the 1st day of April, 1989.
(2A) (a) For the purposes of this subsection, the first
relevant year of assessment in relation to
expenditure incurred by any person is—
(i) the year of assessment in the basis period
for which that person incurs the expendi-
ture, or
(ii) the year of assessment in the basis period
for which (if that person’s profits or gains
from farming for that year of assessment
had been chargeable to tax under Case I
of Schedule D) that person incurred the
expenditure.
(b) Where any capital expenditure referred to in
subsection (2)(a)was incurred by a person on
or after the 6th day of April, 1971, and before
the 6th day of April, 1974, a farm buildings
allowance shall for the purposes of this
section be deemed—
(i) to have been made to that person, and
(ii) to have been made in charging the profits
or gains of the trade for the first relevant
year of assessment and for each sub-
sequent year of assessment before the
year 1974-75;
but where that expenditure was incurred in
the year 1973-74, a farm buildings allowance
shall for the purposes of this section be
deemed to have been made in charging the
profits or gains of the trade for that year of
assessment.
(2B) Notwithstanding any other provision of this
section other thansubsection (2)(d), no farm buildings
allowance made in relation to capital expenditure
incurred on or after the 1st day of April, 1992, shall be
increased under this section.’’,
and
(b) as respects expenditure incurred before the 6th day of May,
1993, as if the following subsection were substituted for
subsection (13)of that section:
1O.J. No. L 185 of 15.7.1988, p.9.
1513

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32
[FA93 s12(2)(b)] [CGTA75 s31(5);
FA94 s64(2)] [FA72 s16(4);
CTA76 s140(1) and
Sch2 PtI par 31] 1514 ‘‘(13) Expenditure shall not be regarded for the
purposes of this section as having been incurred by
a person in so far as it has been met directly or
indirectly by the State, by any board established by
statute or by any public or local authority.’’
(2) (a) This subparagraph shall apply to expenditure incurred on
the construction of fences, roadways, holding yards or
drains or on land reclamation.
(b) Where on or after the 6th day of April, 1977, and before
the 1st day of April, 1989, a person to whomsection 658
applies incurs capital expenditure to which this subpara-
graph applies, being expenditure in respect of which the
person is entitled to claim an allowance under that
section, the allowance to be granted for the chargeable
period related to the expenditure or any subsequent
chargeable period shall be increased by such amount as
is specified by the person to whom the allowance is to be
made in making the person’s claim for the allowance, and
in relation to a case in which this subsection has applied,
any reference in the Tax Acts to a farm buildings allow-
ance made undersection 658shall be construed as a refer-
ence to that allowance as increased under this sub-
paragraph.
Transitional provisions arising from amendments made to the system
of taxation of life assurance companies by Finance Act, 1993
24. Notwithstandingsection 713, where chargeable gains and
allowable losses accrued on disposals deemed by virtue of section
46A of the Corporation Tax Act, 1976, as applied by section 12(2)(a)
of the Finance Act, 1993, to have been made by a life assurance
company for the accounting period ended on the 31st day of
December, 1992, the amount of any fraction of the difference
between the aggregate of such chargeable gains and the aggregate of
such allowable losses treated by virtue ofsection 720(being the re-
enactment of section 46B of the Corporation Tax Act, 1976) as a
chargeable gain of any accounting period ending on or after the 6th
day of April, 1997, shall be deducted from the amount of the unre-
lieved profits (within the meaning ofsection 713) of that accounting
period for the purposes of computing the relief due undersection
713.
Disposals in the year 1993-94 of units in certain unit trusts
25. Where throughout the year of assessment 1993-94 all the assets
of a unit trust were assets, whether mentioned in section 19 of the
Capital Gains Tax Act, 1975, or in any other provision of that Act,
or of any other enactment relating to capital gains tax, to which
section 19 of the Capital Gains Tax Act, 1975, applied, the units in
the unit trust shall for that year be deemed not to be chargeable
assets for the purposes of the Capital Gains Tax Acts.
Application of section 774(6) in certain circumstances
26. In the case of any employer for a chargeable period, being—
(i) where the chargeable period is an accounting period of a
company, an accounting period ending on or before the
21st day of April, 1997, and

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 (ii) where the chargeable period is a year of assessment, any
year of assessment the employer’s basis period for which
ends on a day after that date,
section 774shall apply as if the following subsection were substituted
forsubsection (6)of that section:
‘‘(6) (a) Any sum paid by an employer by means of contributions
under the scheme shall—
(i) in the case of income tax, for the purposes of Case I
or II of Schedule D, be allowed to be deducted as
an expense incurred in the year in which the sum is
paid, and
(ii) in the case of corporation tax, for the purposes of
Case I or II of Schedule D and the provisions of
sections 83and707(4)relating to expenses of man-
agement, be allowed to be deducted as an expense or
expense of management incurred in the accounting
period in which the sum is paid.
(b) The amount of an employer’s contributions which may
be deducted underparagraph (a)shall not exceed the
amount contributed by the employer under the scheme
in respect of employees in a trade or undertaking in
respect of the profits of which the employer is assessable
to income tax or corporation tax, as the case may be.
(c) A sum not paid by means of an ordinary annual contri-
bution shall for the purposes of this subsection be treated,
as the Revenue Commissioners may direct, either as an
expense incurred in the year or the accounting period, as
the case may be, in which the sum is paid, or as an
expense to be spread over such period of years as the
Revenue Commissioners think proper.’’.
Settlements: application of section 792 for the year of assessment
1997-98 in relation to certain dispositions to certain individuals
residing with, and sharing normal household expenses with, the
disponer
27. (1) Where—
(a) the conditions set out insubparagraph (3)are satisfied, and
(b) the Revenue Commissioners are satisfied that the appli-
cation of the amendments to section 439 of the Income
Tax Act, 1967, effected by subsections (1) and (2) of
section 13 of the Finance Act, 1995, which subsections
are re-enacted insubsections (1)and(2)ofsection 792,
would give rise to hardship,
then, those amendments shall not, to the extent that the Revenue
Commissioners consider just, apply before the 6th day of April, 1998,
in respect of a disposition, to whichclause (a)ofsubparagraph (2)
applies, by a person (in this paragraph referred to as ‘‘the disponer’’),
in so far as, by virtue or in consequence of such disposition, income
is payable in a year of assessment to or for the benefit of an individ-
ual to whomclause (b)ofsubparagraph (2)applies, and accordingly,
notwithstanding that section 439 of the Income Tax Act, 1967, as it
stood before its amendment by subsections (1) and (2) of section 13
the Finance Act, 1995, is not re-enacted by this Act, this Act shall
1515
[FA95 s13(3)] [No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32
1516 apply with any modifications necessary to give effect to this
paragraph.
(2) (a) This clause shall apply to—
(i) a disposition made before the 6th day of April, 1993,
or
(ii) a disposition made on or after the 6th day of April,
1993, to immediately replace a disposition made
before that date which has ceased to be effective and
only to the extent that the amount payable to or for
the benefit of an individual to whomclause (b)
applies under such later disposition does not exceed
the amount payable to or for the benefit of that indi-
vidual under the earlier disposition.
(b) This clause shall apply to an individual who is not a child
of the disponer and who, for the whole of the year of
assessment, is resident with, and shares the normal house-
hold expenses with, the disponer.
(3) The conditions referred to insubparagraph (1)are:
(a) the making of the disposition referred to insubparagraph
(2)(a)(i)shall have been notified to the Revenue Com-
missioners before the 8th day of February, 1995,
(b) a child, to whomsubparagraph (4)applies, of the disponer
or of the individual to whomclause (b)ofsubparagraph
(2)applies or of both of them is resident with them for
the whole or substantially the whole of the year of assess-
ment, and
(c) the child to whomclause (b)relates is wholly or mainly
maintained by the disponer and the individual jointly at
their own expense.
(4) A child to whom this subparagraph applies shall be a child
who for a year of assessment—
(i) is under the age of 16 years, or
(ii) if over the age of 16 years at the commencement of the year
of assessment, is receiving full-time instruction at any uni-
versity, college, school or other educational estab-
lishment.
Construction of certain references to Ministers of the Government
28. (1) Subject tosubparagraphs (2)and(3), a reference in this
Act to a Minister of the Government mentioned incolumn (1)of
the Table to this paragraph shall, in respect of the period from the
commencement of this Act to the date mentioned incolumn (3)of
that Table opposite that mention incolumn (1), be construed as a
reference to the Minister of the Government mentioned incolumn
(2)of that Table opposite that mention incolumn (1).
(2) A reference inChapter 1ofPart 24to the Minister for the
Marine and Natural Resources shall—
(a) in respect of the period from the commencement of this Act
to the 11th day of July, 1997, be construed as a reference
to the Minister for Transport, Energy and Communi-
cations, and

[1997.]Taxes Consolidation Act,1997. [No.39.] Sch.32 (b) in respect of the period from the 12th day of July, 1997, to
the 14th day of July, 1997, be construed as a reference to
the Minister for Public Enterprise.
(3) A reference inChapter 2ofPart 24to the Minister for the
Marine and Natural Resources shall—
(a) in respect of the period from the commencement of this Act
to the 11th day of July, 1997, be construed as a reference
to the Minister for Transport, Energy and Communi-
cations, and
(b) in respect of the period from the 12th day of July, 1997, to
the 30th day of September, 1997, be construed as a refer-
ence to the Minister for Public Enterprise.
TABLE
(1) (2) (3)
Minister for Justice, Equality Minister for Justice 8th July, 1997
and Law Reform
Minister for Health and Minister for Health 11th July, 1997
Children
Minister for Social, Community Minister for Social Welfare 11th July, 1997
and Family Afairs
Minister for Arts, Heritage, Minister for Arts, Culture and 11th July, 1997
Gaeltacht and the Islands the Gaeltacht
Minister for Enterprise, Trade Minister for Enterprise and 11th July, 1997
and Employment Employment
Minister for Tourism, Sport and Minister for Tourism and Trade 11th July, 1997
Recreation
Minister for Agriculture and Minister for Agriculture, Food 11th July, 1997
Food and Forestry
Minister for the Marine and Minister for the Marine 11th July, 1997
Natural Resources
Minister for Public Enterprise Minister for Transport, Energy 11th July, 1997
and Communications
Minister for the Environment Minister for the Environment 21st July, 1997
and Local Government
Minister for Education and Minister for Education 30th September,
Science 1997
Construction of certain references to Government Departments
29. A reference in this Act to a Government Department men-
tioned incolumn (1)of the Table to this paragraph shall, in respect
of the period from the commencement of this Act to the date men-
tioned incolumn (3)of that Table opposite that mention incolumn
(1), be construed as a reference to the Government Department
mentioned incolumn (2)of that Table opposite that mention incol-
umn (1).
TABLE
(1) (2) (3)
Department of Agriculture and Department of Agriculture, 11th July, 1997
Food Food and Forestry
Department of the Environment Department of the Environment 21st July, 1997
and Local Government
1517

[No.39.]Taxes Consolidation Act,1997. [1997.] Sch.32
1518 Construction of reference to Secretary General
of Department of Finance
30. A reference in this Act to the Secretary General of the
Department of Finance shall, in respect of the period from the com-
mencement of this Act to the 31st day of August, 1997, be construed
as a reference to the Secretary of the Department of Finance.
Construction of certain references to educational institutions
31. A reference in this Act to an educational institution mentioned
incolumn (1)of the Table to this paragraph shall, in respect of the
period from the commencement of this Act to the date mentioned
incolumn (3)of that Table opposite that mention incolumn (1),be
construed as a reference to the educational institution mentioned in
column (2)of that Table opposite that mention incolumn (1).
TABLE
(1) (2) (3)
National University of Ireland, Dublin University College, Dublin 15th June, 1997
National University of Ireland, Cork University College, Cork 15th June, 1997