Finance Act 1999

Interpretation (Chapter 9).	372U.—(1) In this Chapter— ‘guidelines’ means, subject to subsection (2), guidelines in relation to— (a) the location, development and operation of park and ride facilities, (b) the development of commercial activities located at qualifying park and ride facilities, and (c) the development of certain residential accommodation located at certain qualifying park and ride facilities, issued by the Minister for the Environment and Local Government following consultation with the Minister for Public Enterprise and with the consent of the Minister for Finance; ‘park and ride facility’ means— (a) a building or structure served by a bus or train service, in use for the purpose of providing, for members of the public generally, intending to continue a journey by bus or train and without preference for any particular class of person and on payment of an appropriate charge, parking space for mechanically propelled vehicles, and (b) any area under, over or immediately adjoining the building or structure to which paragraph (a) refers on which a qualifying premises (within the meaning of section 372W, 372X or 372Y) is or is to be situated; ‘qualifying park and ride facility’ means a park and ride facility in respect of which the relevant local authority, in consultation with such other agencies as may be specified in the guidelines, gives a certificate in writing to the person constructing or refurbishing such a facility stating that it is satisfied that the facility complies with the criteria and requirements laid down in the guidelines; ‘qualifying period’ means the period commencing on the 1st day of July, 1999, and ending on the 30th day of June, 2002; ‘the relevant local authority’, in relation to the construction or refurbishment of a park and ride facility or a qualifying premises within the meaning of section 372W or the construction of a qualifying premises within the respective meanings assigned in sections 372X and 372Y, means— (a) in respect of the county boroughs of Cork, Dublin, Galway, Limerick and Waterford, the corporation of the borough concerned, (b) in respect of the administrative counties of Clare, Cork, Dún Laoghaire-Rathdown, Fingal, Galway, Kildare, Kilkenny, Limerick, Meath, South Dublin, Waterford and Wicklow, the council of the county concerned, (c) an urban district council situated in the administrative county of Kildare, Meath or Wicklow, in whose functional area the park and ride facility is situated. (2) For the purposes of this Chapter, and without prejudice to the generality of the meaning of the guidelines referred to in subsection (1), the guidelines may include provisions in relation to all or any one or more of the following: (a) the criteria for determining the suitability of a site as a location for a park and ride facility, (b) the conditions to apply in relation to the provision of transport services to and from a park and ride facility, including provision for a formal agreement between a transport service provider and a park and ride facility operator where these functions are discharged by separate persons, (c) the hours of operation of a park and ride facility and the level and structure of charges to be borne by members of the public in respect of parking and the use of transport services to or from a park and ride facility, (d) the minimum number of vehicle parking spaces to be provided in a park and ride facility, (e) the proportion of parking space, if any, in a park and ride facility which may, subject to any necessary conditions, be allocated for purposes connected with any commercial or residential development at a park and ride facility, (f) the requirements to apply in relation to the development and operation of commercial activities, if any, at a park and ride facility, including requirements necessary to ensure that those activities do not have an adverse effect on the development and operation of the park and ride facility, and (g) the requirements to apply in relation to the provision of residential accommodation, if any, at a park and ride facility, including requirements necessary to ensure that such accommodation does not have an adverse effect on the development and operation of the park and ride facility.
Capital allowances in relation to construction or refurbishment of certain park and ride facilities.	372V.—(1) (a) Subject to subsections (2) to (4), the provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply as if a qualifying park and ride facility were, at all times at which it is a qualifying park and ride facility, a building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by reason of its use for a purpose specified in section 268(1)(a). (b) An allowance shall be given by virtue of this subsection in respect of any capital expenditure incurred on the construction or refurbishment of a qualifying park and ride facility only in so far as that expenditure is incurred in the qualifying period. (2) In a case where capital expenditure is incurred in the qualifying period on the refurbishment of a qualifying park and ride facility, subsection (1) shall apply only if the total amount of the capital expenditure so incurred is not less than an amount equal to 10 per cent of the market value of the qualifying park and ride facility immediately before that expenditure is incurred. (3) For the purposes of the application, by subsection (1), of sections 271 and 273 in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a qualifying park and ride facility— (a) section 271 shall apply— (i) as if in subsection (1) of that section the definition of ‘industrial development agency’ were deleted, (ii) as if in subsection (2)(a)(i) of that section ‘to which subsection (3) applies’ were deleted, (iii) as if subsection (3) of that section were deleted, (iv) as if the following subsection were substituted for subsection (4) of that section: ‘(4) An industrial building allowance shall be of an amount equal to 50 per cent of the capital expenditure mentioned in subsection (2).’, and (v) as if in subsection (5) of that section ‘to which subsection (3)(c) applies’ were deleted, and (b) section 273 shall apply— (i) as if in subsection (1) of that section, the definition of ‘industrial development agency’ were deleted, and (ii) as if subsections (2)(b) and (3) to (7) of that section were deleted. (4) Notwithstanding section 274(1), no balancing charge shall be made in relation to a qualifying park and ride facility by reason of any of the events specified in that section which occurs— (a) more than 13 years after the qualifying park and ride facility was first used, or (b) in a case where section 276 applies, more than 13 years after the capital expenditure on refurbishment of the park and ride facility was incurred. (5) For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (1), whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying park and ride facility is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the qualifying park and ride facility actually carried out during the qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period. (6) Where an allowance is given under this section in respect of capital expenditure incurred on the construction or refurbishment of a qualifying park and ride facility, no allowance shall be given in respect of that expenditure by virtue of any other provision of the Tax Acts.
Capital allowances in relation to construction or refurbishment of certain commercial premises.	372W.—(1) In this section ‘qualifying premises’ means a building or structure the site of which is wholly within the site of a qualifying park and ride facility and— (a) in respect of which the relevant local authority gives to the person constructing or refurbishing the premises a certificate in writing stating that it is satisfied that the premises and the activity to be carried on in the premises complies with the requirements laid down in the guidelines in relation to the development of commercial activity at a qualifying park and ride facility, and (b) which apart from this section is not an industrial building or structure within the meaning of section 268(1), and (c) (i) is in use for the purposes of a trade or profession, or (ii) whether or not it is so used, is let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the building or structure negotiated on an arm's length basis, but does not include any part of a building or structure in use as or as part of a dwelling house. (2) (a) Subject to paragraphs (b) and (c) and subsections (3) to (5), the provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply— (i) as if a qualifying premises were, at all times at which it is a qualifying premises, a building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by reason of its use for a purpose specified in section 268(1)(a), and (ii) where any activity carried on in the qualifying premises is not a trade, as if it were a trade. (b) An allowance shall be given by virtue of this subsection in respect of any capital expenditure incurred on the construction or refurbishment of a qualifying premises only in so far as that expenditure is incurred in the qualifying period. (c) (i) An allowance shall be given by virtue of this subsection in respect of any capital expenditure incurred on the construction or refurbishment of a qualifying premises at a park and ride facility only in so far as that expenditure when aggregated with— (I) other capital expenditure, if any, incurred on the construction or refurbishment of other qualifying premises and in respect of which an allowance would or would but for this paragraph be given, and (II) other expenditure, if any, in respect of which there is provision for a deduction to be made by virtue of section 372X or 372Y, incurred at that park and ride facility, does not exceed one-half of the total capital expenditure incurred at that park and ride facility in respect of which an allowance or deduction is to be made or would, but for this paragraph or section 372X(4) or 372Y(2)(c), be made by virtue of any provision of this Chapter. (ii) A person who has incurred capital expenditure on the construction or refurbishment of a qualifying premises at a park and ride facility and who claims to have complied with the requirements of subparagraph (i) in relation to that expenditure, shall be deemed not to have so complied unless the person has received from the relevant local authority a certificate in writing issued by it stating that it is satisfied that those requirements have been met. (3) In the case where capital expenditure is incurred in the qualifying period on the refurbishment of a qualifying premises, subsection (2) shall apply only if the total amount of the capital expenditure so incurred is not less than an amount equal to 10 per cent of the market value of the qualifying premises immediately before that expenditure was incurred. (4) For the purposes of the application, by subsection (2), of sections 271 and 273 in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a qualifying premises— (a) section 271 shall apply— (i) as if in subsection (1) of that section the definition of ‘industrial development agency’ were deleted, (ii) as if in subsection (2)(a)(i) of that section ‘to which subsection (3) applies’ were deleted, (iii) as if subsection (3) of that section were deleted, (iv) as if the following subsection were substituted for subsection (4) of that section: ‘(4) An industrial building allowance shall be of an amount equal to 50 per cent of the capital expenditure mentioned in subsection (2).’, and (v) as if in subsection (5) of that section ‘to which subsection (3)(c) applies’ were deleted, and (b) section 273 shall apply— (i) as if in subsection (1) of that section the definition of ‘industrial development agency’ were deleted, and (ii) as if subsections (2)(b) and (3) to (7) of that section were deleted. (5) Notwithstanding section 274(1), no balancing charge shall be made in relation to a qualifying premises by reason of any of the events specified in that section which occur— (a) more than 13 years after the qualifying premises was first used, or (b) in a case where section 276 applies, more than 13 years after the capital expenditure on refurbishment of the qualifying premises was incurred. (6) For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (2), whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying premises is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the premises actually carried out during the qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period. (7) Where an allowance is given under this section in respect of capital expenditure incurred on the construction or refurbishment of a qualifying premises, no allowance shall be given in respect of that expenditure by virtue of any other provision of the Tax Acts.
Rented residential accommodation: deduction for certain expenditure on construction.	372X.—(1) In this section— ‘qualifying lease’, in relation to a house, means, subject to section 372Z(2), a lease of the house the consideration for the grant of which consists— (a) solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or (b) of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium which does not exceed 10 per cent of the relevant cost of the house; ‘qualifying premises’ means, subject to subsections (3), (4) and (5) of section 372Z, a house— (a) the site of which is wholly within the site of a qualifying park and ride facility, (b) in respect of which the relevant local authority gives to the person constructing the house a certificate in writing stating that it is satisfied that the house or, in a case where the house is one of a number of houses in a single development, the development of which it is part complies with the requirements laid down in the guidelines in relation to the development of certain residential accommodation at a park and ride facility, (c) which is used solely as a dwelling, (d) the total floor area of which is not less than 38 square metres and not more than 125 square metres, (e) in respect of which, if it is not a new house (for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost, the amount specified in which in respect of the cost of construction of the house is not less than the expenditure actually incurred on such construction, and (f) which without having been used is first let in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease; ‘relevant cost’, in relation to a house, means, subject to subsection (5), an amount equal to the aggregate of— (a) the expenditure incurred on the acquisition of, or of rights in or over, any land on which the house is constructed, and (b) the expenditure actually incurred on the construction of the house; ‘relevant period’, in relation to a qualifying premises, means the period of 10 years beginning on the date of the first letting of the premises under a qualifying lease. (2) Subject to subsections (3) and (4), where a person, having made a claim in that behalf, proves to have incurred expenditure on the construction of a qualifying premises— (a) such person shall be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of that expenditure as is to be treated under section 372Z(7) or under this section as having been incurred by such person in the qualifying period, and (b) Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2). (3) (a) This subsection shall apply to any premium or other sum which is payable, directly or indirectly, under a qualifying lease or otherwise under the terms subject to which the lease is granted, to or for the benefit of the lessor or to or for the benefit of any person connected with the lessor. (b) Where any premium or other sum to which this subsection applies, or any part of such premium or such other sum, is not or is not treated as rent for the purposes of section 97, the expenditure to be treated as having been incurred in the qualifying period on the construction of the qualifying premises to which the qualifying lease relates shall be deemed for the purposes of subsection (2) to be reduced by the lesser of— (i) the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and (ii) the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the expenditure actually incurred on the construction of the qualifying premises (which is to be treated under section 372Z(7) as having been incurred in the qualifying period) bears to the whole of the expenditure incurred on that construction. (4) (a) A person shall be entitled to a deduction by virtue of subsection (2) in respect of capital expenditure incurred on the construction of qualifying premises at a park and ride facility only in so far as that expenditure when aggregated with— (i) other capital expenditure, if any, incurred on the construction of other qualifying premises and in respect of which a deduction would or would but for this subsection be made, and (ii) other expenditure, if any, in respect of which there is provision for a deduction under section 372Y, incurred at that park and ride facility, does not exceed one-quarter of the total capital expenditure incurred at that park and ride facility in respect of which an allowance or deduction is to be made or would, but for this subsection or section 372W(2)(c) or 372Y(2)(c), be made by virtue of any provision of this Chapter. (b) A person who has incurred capital expenditure on the construction of a qualifying premises at a park and ride facility and who claims to have complied with the requirements of paragraph (a) in relation to that expenditure, shall be deemed not to have so complied unless the person has received from the relevant local authority a certificate in writing issued by it stating that it is satisfied that those requirements have been met. (5) Where a qualifying premises forms a part of a building or is one of a number of buildings in a single development, or forms a part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary— (a) of the expenditure incurred on the construction of that building or those buildings, and (b) of the amount which would be the relevent cost in relation to that building or those buildings if the building or buildings, as the case may be, were a single qualifying premises, for the purposes of determining the expenditure incurred on the construction of the qualifying premises and the relevant cost in relation to the qualifying premises. (6) Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs— (a) the house ceases to be a qualifying premises, or (b) the ownership of the lessor's interest in the house passes to any other person but the house does not cease to be a qualifying premises, then, the person who before the occurrence of the event received or was entitled to receive a deduction under subsection (2) in respect of expenditure incurred on the construction of the qualifying premises shall be deemed to have received on the day before the day of the occurrence of the event an amount as rent from the qualifying premises equal to the amount of the deduction. (7) (a) Where the event mentioned in subsection (6)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor's interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of expenditure on the construction of the house equal to the amount which under section 372Z(7) or under this section (apart from subsection (3)(b)) the lessor was treated as having incurred in the qualifying period on the construction of the house; but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed the relevant price paid by such person on the purchase. (b) For the purposes of this subsection and subsection (8), the relevant price paid by a person on the purchase of a house shall be the amount which bears to the net price paid by such person on that purchase the same proportion as the amount of the expenditure actually incurred on the construction of the house which is to be treated under section 372Z(7) as having been incurred in the qualifying period bears to the relevant cost in relation to that house. (8) (a) Subject to paragraph (b), where expenditure is incurred on the construction of a house and before the house is used it is sold, the person who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period expenditure on the construction of the house equal to the lesser of— (i) the amount of such expenditure which is to be treated under section 372Z(7) as having been incurred in the qualifying period, and (ii) the relevant price paid by such person on the purchase, but, where the house is sold more than once before it is used, this subsection shall apply only in relation to the last of those sales. (b) Where expenditure is incurred on the construction of a house by a person carrying on a trade or part of a trade which consists, as to the whole or any part of the trade, of the construction of buildings with a view to their sale and the house, before it is used, is sold in the course of that trade or, as the case may be, that part of that trade— (i) the person (in this paragraph referred to as ‘the purchaser’) who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period expenditure on the construction of the house equal to the relevant price paid by the purchaser on the purchase (in this paragraph referred to as ‘the first purchase’), and (ii) in relation to any subsequent sale or sales of the house before the house is used, paragraph (a) shall apply as if the reference to the amount of expenditure which is to be treated as having been incurred in the qualifying period were a reference to the relevant price paid on the first purchase. (9) Section 372Z shall apply for the purposes of supplementing this section.
Residential accommodation: allowance to owner-occupiers in respect of certain expenditure on construction.	372Y.—(1) In this section— ‘qualifying expenditure’, in relation to an individual, means an amount equal to the amount of the expenditure incurred by the individual on the construction of a qualifying premises which is a qualifying owner-occupied dwelling in relation to the individual after deducting from that amount of expenditure any sum in respect of or by reference to— (a) that expenditure, (b) the qualifying premises, or (c) the construction work in respect of which that expenditure was incurred, which the individual has received or is entitled to receive, directly or indirectly, from the State, any board established by statute or any public or local authority; ‘qualifying owner-occupied dwelling’, in relation to an individual, means a qualifying premises which is first used, after the qualifying expenditure has been incurred, by the individual as his or her only or main residence; ‘qualifying premises’, in relation to the incurring of qualifying expenditure, means, subject to subsections (4) and (5) of section 372Z, a house— (a) the site of which is wholly within the site of a qualifying park and ride facility, (b) in respect of which the relevant local authority gives to the person constructing the house a certificate in writing stating that it is satisfied that the house or, in a case where the house is one of a number of houses in a single development, the development of which it is part complies with the requirements laid down in the guidelines in relation to the development of certain residential accommodation at a park and ride facility, (c) which is used solely as a dwelling, (d) in respect of which, if it is not a new house (for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of construction of the house is not less than the expenditure actually incurred on such construction, and (e) the total floor area of which is not less than 38 square metres and not more than 125 square metres. (2) (a) Subject to paragraphs (b) and (c), where an individual, having made a claim in that behalf, proves to have incurred qualifying expenditure in a year of assessment, the individual shall be entitled, for that year of assessment and for any of the 9 subsequent years of assessment in which the qualifying premises in respect of which the individual incurred the qualifying expenditure is the only or main residence of the individual, to have a deduction made from his or her total income of an amount equal to 5 per cent of the amount of that expenditure. (b) A deduction shall be given under this section in respect of qualifying expenditure only in so far as that expenditure is to be treated under section 372Z(7) as having been incurred in the qualifying period. (c) (i) A person shall be entitled to a deduction by virtue of this subsection in respect of qualifying expenditure incurred at a park and ride facility only in so far as that expenditure when aggregated with— (I) other qualifying expenditure, if any, in respect of which a deduction would or would but for this paragraph be made, and (II) other expenditure, if any, in respect of which there is provision for a deduction under section 372X, incurred at that park and ride facility, does not exceed one-quarter of the total capital expenditure incurred at that park and ride facility in respect of which an allowance or deduction is to be made or would, but for this paragraph or section 372W(2)(c) or 372X(4), be made by virtue of any provision of this Chapter. (ii) A person who has incurred qualifying expenditure at a park and ride facility and who claims to have complied with the requirements of subparagraph (i) in relation to that expenditure, shall be deemed not to have so complied unless the person has received from the relevant local authority a certificate in writing issued by it stating that it is satisfied that those requirements have been met. (3) Where qualifying expenditure in relation to a qualifying premises is incurred by 2 or more persons, then each of those persons shall be treated as having incurred the expenditure in the proportions in which they actually bore the expenditure, and the expenditure shall be apportioned accordingly. (4) Section 372Z shall apply for the purposes of supplementing this section.
Provisions supplementary to sections 372X and 372Y.	372Z.—(1) In sections 372X and 372Y— ‘certificate of reasonable cost’ means a certificate granted by the Minister for the Environment and Local Government for the purposes of section 372X or 372Y, as the case may be, stating that the amount specified in the certificate in relation to the cost of construction of the house to which the certificate relates appears to that Minister at the time of the granting of the certificate and on the basis of the information available to that Minister at that time to be reasonable, and section 18 of the Housing (Miscellaneous Provisions) Act, 1979, shall, with any necessary modifications, apply to a certificate of reasonable cost as if it were a certificate of reasonable value within the meaning of that section; ‘house’ includes any building or part of a building used or suitable for use as a dwelling and any outoffice, yard, garden or other land appurtenant to or usually enjoyed with that building or part of a building; ‘total floor area’ means the total floor area of a house measured in the manner referred to in section 4(2)(b) of the Housing (Miscellaneous Provisions) Act, 1979. (2) A lease shall not be a qualifying lease for the purposes of section 372X if the terms of the lease contain any provision enabling the lessee or any other person, directly or indirectly, at any time to acquire any interest in the house to which the lease relates for a consideration less than that which might be expected to be given at that time for the acquisition of the interest if the negotiations for that acquisition were conducted in the open market at arm's length. (3) A house shall not be a qualifying premises for the purposes of section 372X if— (a) it is occupied as a dwelling by any person connected with the person entitled, in relation to the expenditure incurred on the construction of the house, to a deduction under section 372X(2), and (b) the terms of the qualifying lease in relation to the house are not such as might have been expected to be included in the lease if the negotiations for the lease had been at arm's length. (4) A house shall not be a qualifying premises for the purposes of section 372X or 372Y unless it complies with such conditions, if any, as may be determined by the Minister for the Environment and Local Government from time to time for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979, in relation to standards of construction of houses and the provision of water, sewerage and other services in houses. (5) A house shall not be a qualifying premises for the purposes of section 372X or 372Y unless persons authorised in writing by the Minister for the Environment and Local Government for the purposes of those sections are permitted to inspect the house at all reasonable times on production, if so requested by a person affected, of their authorisations. (6) For the purposes of sections 372X and 372Y, references in those sections to the construction of any premises shall be construed as including references to the development of the land on which the premises is situated or which is used in the provision of gardens, grounds, access or amenities in relation to the premises and, without prejudice to the generality of the foregoing, as including in particular— (a) demolition or dismantling of any building on the land, (b) site clearance, earth moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works, (c) walls, power supply, drainage, sanitation and water supply, and (d) the construction of any outhouses or other buildings or structures for use by the occupants of the premises or for use in the provision of amenities for the occupants. (7) (a) For the purposes of determining, in relation to any claim under section 372X(2) or 372Y(2), as the case may be, whether and to what extent expenditure incurred on the construction of a qualifying premises is incurred or not incurred during the qualifying period, only such an amount of that expenditure as is properly attributable to work on the construction of the premises actually carried out during the qualifying period shall be treated as having been incurred during that period. (b) Where by virtue of subsection (6) expenditure on the construction of a qualifying premises includes expenditure on the development of any land, paragraph (a) shall apply with any necessary modifications as if the references in that paragraph to the construction of the qualifying premises were references to the development of such land. (8) (a) For the purposes of section 372X, other than the purposes mentioned in subsection (7)(a), expenditure incurred on the construction of a qualifying premises shall be deemed to have been incurred on the date of the first letting of the premises under a qualifying lease. (b) For the purposes of section 372Y, other than the purposes mentioned in subsection (7)(a), expenditure incurred on the construction of a qualifying premises shall be deemed to have been incurred on the earliest date after the expenditure was actually incurred on which the premises is in use as a dwelling. (9) For the purposes of section 372X, expenditure shall not be regarded as incurred by a person in so far as it has been or is to be met, directly or indirectly, by the State, by any board established by statute or by any public or local authority. (10) Section 555 shall apply as if a deduction under section 372X(2) were a capital allowance and as if any rent deemed to have been received by a person under section 372X(5) were a balancing charge. (11) Where a deduction in respect of expenditure is given under section 372X(2) or 372Y(2), relief shall not be given in respect of that expenditure under any other provision of the Tax Acts. (12) An appeal to the Appeal Commissioners shall lie on any question arising under this section or under section 372X or 372Y (other than a question on which an appeal lies under section 18 of the Housing (Miscellaneous Provisions) Act, 1979) 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.”.

(2) The Principal Act is hereby amended—

(a) in section 458 by the insertion in Part 1 of the Table to that section after “Section 372RA” (inserted by this Act) of “Section 372Y”, and

(b) by the substitution in section 1024(2)(a)(i) of “372I, 372RA and 372Y” for “372I and 372RA” (inserted by this Act).

Chapter 7 Corporation Tax

71 Rate of corporation tax.

71.—(1) Section 21 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (1):

“(1) Corporation tax shall be charged on the profits of companies at the rate of—

(a) 32 per cent for the financial year 1998,

(b) 28 per cent for the financial year 1999,

(c) 24 per cent for the financial year 2000,

(d) 20 per cent for the financial year 2001,

(e) 16 per cent for the financial year 2002,

(f) 12 per cent for the financial year 2003 and each subsequent financial year.”.

(2) Schedule 1 shall have effect for the purposes of supplementing this section.

72 Amendment of section 22 (reduced rate of corporation tax for certain income) of Principal Act.

72.—(1) Section 22 of the Principal Act is hereby amended—

(a) in subsection (1)—

(i) in paragraph (a), by the substitution for clauses (I) to (III) of the following clauses:

“(I) as respects accounting periods ending on or after the 1st day of April, 1997, and before the 1st day of January, 1998, 28 per cent, and

(II) as respects accounting periods ending on or after the 1st day of January, 1998, and before the 1st day of January, 2000, 25 per cent.”, and

(ii) by the deletion of paragraph (b),

(b) by the substitution of the following subsection for subsection (2):

“(2) For the purposes of subsection (1) and subject to subsections (3) and (4), the specified amount in relation to an accounting period of a company shall be an amount determined by the formula—

	L x	N	x	1
	12	A

where—

L is—

(a) in the case of an accounting period ending before the 1st day of January, 1999, £50,000,

(b) in the case of an accounting period ending on or after the 1st day of January, 1999, £100,000,

N is the number of months in the accounting period, and

A is one plus the number of associated companies which the company has in the accounting period.”, and

(c) by the insertion of the following subsection after subsection (7):

“(7A) For the purposes of this section—

(a) where an accounting period of a company begins before the 1st day of January, 1998, and ends on or after that day, it shall be divided into 2 parts, one beginning on the day on which the accounting period begins and ending on the 31st day of December, 1997, and the other beginning on the 1st day of January, 1998, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods of the company,

(b) where an accounting period of a company begins before the 1st day of January, 1999, and ends on or after that day, it shall be divided into 2 parts, one beginning on the day on which the accounting period begins and ending on the 31st day of December, 1998, and the other beginning on the 1st day of January, 1999, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods of the company, and

(c) where an accounting period of a company begins before the 1st day of January, 2000, and ends on or after that day, it shall be divided into 2 parts, one beginning on the day on which the accounting period begins and ending on the 31st day of December, 1999, and the other beginning on the 1st day of January, 2000, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods of the company.”.

(2) Section 22 of the Principal Act is hereby repealed with effect from the 1st day of January, 2000.

73 Higher rate of corporation tax.

73.—The Principal Act is hereby amended by the insertion of the following section after section 21:

“Higher rate of corporation tax.

21A.—(1) In this section— ‘construction operations’ means operations of any of the descriptions referred to in the definition of ‘construction operations’ in section 530(1), other than operations referred to in paragraph (f) of that definition; ‘dealing in or developing land’ shall be construed in accordance with Chapter 1 of Part 22; ‘excepted operations’ means any one or more of the following operations or activities— (a) dealing in or developing land, other than such part of that operation or activity as consists of construction operations, (b) working minerals, and (c) petroleum activities; ‘excepted trade’ means a trade consisting only of trading operations or activities which are excepted operations or, in the case of a trade consisting partly of excepted operations and partly of other operations or activities, the part of the trade consisting only of excepted operations which is treated as a separate trade by virtue of subsection (2); ‘land’ includes foreshore and land covered with water, and ‘dry land’ means land not permanently covered by water; ‘minerals’ means all substances (other than the agricultural surface of the ground and other than turf or peat) in, on or under land, whether obtainable by underground or by surface working, and includes all mines, whether or not they are already opened or in work, and also includes the cubic space occupied or formerly occupied by minerals; ‘petroleum’ has the same meaning as in section 2(1) of the Petroleum and Other Minerals Development Act, 1960; ‘petroleum activities’ means any one or more of the following activities— (a) petroleum exploration activities, (b) petroleum extraction activities, and (c) the acquisition, enjoyment or exploitation of petroleum rights; ‘petroleum exploration activities’ means activities carried on in searching for deposits of petroleum, in testing or appraising such deposits or in winning access to such deposits for the purposes of such searching, testing or appraising; ‘petroleum extraction activities’ means activities carried on in— (a) winning petroleum from any land, including searching in that land and winning access to such petroleum, (b) transporting as far as dry land petroleum so won from a place not on dry land, or (c) effecting the initial treatment and storage of petroleum so won from any land; ‘petroleum rights’ means rights to petroleum to be extracted or to interests in, or to the benefit of, petroleum; ‘working’, in relation to minerals, includes digging, searching for, mining, getting, raising, taking, carrying away and treating minerals and the sale or other disposal of minerals. (2) For the purposes of this section, where a trade consists partly of excepted operations and partly of other operations or activities, the part of the trade consisting of excepted operations and the part of the trade consisting of other operations or activities shall each be treated as a separate trade, and there shall be apportioned to each such part such proportion of the total amount receivable from sales made and services rendered in the course of the trade, and of expenses incurred in the course of the trade, as is just and reasonable. (3) Notwithstanding section 21, but subject to subsection (4), corporation tax shall be charged on the profits of companies, in so far as those profits consist of income chargeable to corporation tax under Case III, IV or V of Schedule D or of income of an excepted trade, at the rate of 25 per cent for the financial year 2000 and subsequent financial years. (4) This section shall not apply to the profits of a company for any accounting period to the extent that those profits consist of income from the sale of goods within the meaning of section 454.”.

74 Provisions relating to 10 per cent rate of corporation tax.

74.—Chapter 1 of Part 14 of the Principal Act is hereby amended—

(a) in section 442—

(i) in subsection (1)—

(I) by the insertion of the following before the definition of “merchandise”:

“‘expansion operations’, in relation to a company, includes—

(a) increases in production capacity for existing or directly related product lines of the company, and

(b) the addition of support functions directly related to the existing trading operations of the company;

‘industrial development agency’ means—

(a) the Industrial Development Authority in Ireland,

(b) the Shannon Free Airport Development Company,

(c) údarás na Gaeltachta,

(d) the Industrial Development Agency, Ireland,

(e) Forbairt,

(f) Forfás, or

(g) Enterprise Ireland;”,

(II) by the substitution of the following for the definitions of “relevant accounting period” and “relief under this Part”, respectively:

“‘relevant accounting period’, in relation to a trade carried on by a company which consists of or includes the manufacture of goods, means an accounting period or part of an accounting period of a company ending on or before—

(a) where subsection (11) or (12) of section 443 applies, the 31st day of December, 2000,

(b) in the case of a trade, other than a specified trade, which is set up and commenced on or after the 23rd day of July, 1998, the 31st day of December, 2002, and

(c) in any other case, the 31st day of December, 2010;

‘relief under this Part’ means the reduction of corporation tax provided for in section 448(2);”,

and

(III) by the addition of the following after the definition of “relief under this Part”:

“‘specified trade’, in relation to a company—

(a) means a trade which consists of or includes trading operations specified in a grant agreement (in this definition referred to as ‘the relevant grant agreement’) entered into between the company and an industrial development agency on foot of an approval of grant assistance for the company made by the industrial development agency on or before the 31st day of July, 1998, but

(b) does not include such part of the trade as consists of expansion operations which commenced to be carried on on or after the 23rd day of July, 1998, other than such of those operations as would fall within the terms of the relevant grant agreement;”,

and

(ii) by the addition of the following subsections after subsection (2):

“(3) Where, by virtue of the application of the definition of ‘specified trade’, an accounting period or part of an accounting period—

(a) would be a relevant accounting period in relation to a part (in this subsection referred to as ‘the first-mentioned part’) of a trade carried on by a company, and

(b) would not be a relevant accounting period in relation to another part (in this subsection referred to as ‘the second-mentioned part’) of that trade,

then, for the purposes of this Part—

(i) the first-mentioned part and the second-mentioned part shall each be treated as a separate trade, and

(ii) there shall be apportioned to the first-mentioned part and the second-mentioned part such proportion of the total amount receivable from sales made and services rendered in the course of the trade, and of expenses incurred in the course of the trade, in the accounting period or part of the accounting period, as the case may be, as is just and reasonable.

(4) Where—

(a) on or after the 23rd day of July, 1998, a company (in this subsection referred to as ‘the successor company’) succeeds to a trade or part of a trade which was carried on by another company (in this subsection referred to as ‘the original company’), and

(b) the original company has or could have made a claim to relief under this Part in relation to the trade or part of the trade,

then, subject to sections 445 and 446, relief, in so far as such relief relates to the trade or part of the trade in question, shall be granted to the successor company as respects the remaining relevant accounting periods for which such relief might have been claimed by the original company if it had continued to carry on the trade or part of the trade in question.”,

(b) in section 445(2), by the substitution of the following for “until the 31st day of December, 2005”:

“until—

(a) in the case of those operations which, on or before the 31st day of May, 1998, were approved by the Minister for carry on in the airport, the 31st day of December, 2005, and

(b) in the case of those operations which are so approved after the 31st day of May, 1998, the 31st day of December, 2002”,

(c) in section 446(2), by the substitution of the following for “until the 31st day of December, 2005”:

“until—

(a) in the case of those operations which, on or before the 31st day of July, 1998, were approved by the Minister for carry on in the Area, the 31st day of December, 2005, and

(b) in the case of those operations which are so approved after the 31st day of July, 1998, the 31st day of December, 2002”,

(d) in section 454—

(i) in subsection (1), by the substitution of the following paragraph for paragraph (b):

“(b) For the purposes of this section, where a part only of an accounting period of a company is a relevant accounting period, the accounting period shall be divided into 2 parts, one beginning on the day on which the accounting period begins and ending on the last day of the accounting period which is within the relevant accounting period, and the other beginning on the day after that last-mentioned day and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods of the company.”,

and

(ii) in subsection (2), by the substitution of “a relevant accounting period” for “an accounting period ending on or before the 31st day of December, 2010,”,

(e) in section 455—

(i) in subsection (2), by the substitution of “a relevant accounting period” and “the relevant accounting period” for “an accounting period” and “the accounting period”, respectively, and

(ii) in subsection (3), by the substitution of “a relevant accounting period” and “that relevant accounting period” for “an accounting period” and “that accounting period”, respectively,

and

(f) in section 456(2)(a), by the substitution of “any relevant accounting period” for “any accounting period ending on or before the 31st day of December, 2010,”.

75 Amendment of section 88 (deduction for gifts to Enterprise Trust Ltd.) of Principal Act.

75.—Section 88 of the Principal Act is hereby amended—

(a) by the substitution for subsection (1) of the following subsection:

“(1) In this section,‘the company’ means the company incorporated on the 30th day of October, 1991, as The Enterprise Trust Limited or such successor body of The Enterprise Trust Limited as may be approved for the purposes of this section by the Minister for Finance.”,

(b) in subsection (2)(a), by the substitution for “31st day of December, 1999” of “31st day of December, 2002”,

(c) in subsection (3)(b), by the substitution for subparagraph (iii) of the following subparagraph:

“(ii) in respect of a gift made at any time in the year ending on the 31st day of December in the year 1999, 2000, 2001 or 2002, if at that time the aggregate of the net amounts of all gifts to which this section applies made to the company within that year exceeds £5,000,000.”,

and

(d) in subsection (6), by the substitution for “the amounts specified in subparagraphs (i) and (ii)” of “the amount specified in subparagraph (i)”.

76 Income of Investor Compensation Company Ltd.

76.—(1) The Principal Act is hereby amended—

(a) by the insertion after section 219A of the following section:

“Income of Investor Compensation Company Ltd.	219B.—(1) In this section, ‘the company’ means the company incorporated on the 10th day of September, 1998, as The Investor Compensation Company Limited. (2) Notwithstanding any provision of the Corporation Tax Acts, profits arising in any accounting period ending on or after the 10th day of September, 1998, to the company shall be exempt from corporation tax.”,

and

(b) in section 256(1), in paragraph (a) of the definition of “relevant deposit”, by the substitution for subparagraphs (iv) and (v) of the following subparagraphs:

(iv) the Central Bank of Ireland,

(v) The Investor Compensation Company Limited, or

(vi) Icarom plc,”.

(2) Paragraph (b) of subsection (1) shall be deemed to have come into operation on the 10th day of September, 1998.

77 Withdrawal of exemption from corporation tax for Bord Gáis Éireann.

77.— Section 220 of the Principal Act is hereby amended as respects any accounting period beginning on or after the date of passing of this Act by the deletion of paragraph 1 of the Table to the section.

78 Amendment of Chapter 5 (group relief) of Part 12 of Principal Act.

78.— (1) Chapter 5 of Part 12 of the Principal Act is hereby amended—

(a) in section 410—

(i) in subsection (1)(a) by the insertion before the definition of “trading or holding company” of the following definition:

“‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State;”,

(ii) by the substitution for paragraph (b) of subsection (1) of the following paragraph:

“(b) For the purposes of this section—

(i) a company shall be owned by a consortium if 75 per cent or more of the ordinary share capital of the company is beneficially owned between them by 5 or fewer companies resident in one or more than one Member State of the European Communities of which none of these companies beneficially owns less than 5 per cent of that capital, and those companies shall be called the members of the consortium, and

(ii) references to a company resident in a Member State of the European Communities shall be construed as references to a company which, by virtue of the law of a Member State of the European Communities, is resident for the purposes of tax in such a Member State.”,

(iii) in paragraph (a) of subsection (3) by the substitution for “in the State” of “in a Member State of the European Communities”, and

(iv) in paragraph (a)(i) of subsection (4) by the substitution for “so resident” of “resident in a Member State of the European Communities”,

(b) in section 411(1)—

(i) in paragraph (a) by the insertion before the definition of “trading company” of the following definition:

“‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State;”,

(ii) in paragraph (c)—

(I) by the substitution for “companies resident in the State” of “a company which, by virtue of the law of a Member State of the European Communities, is resident for the purposes of tax in such a Member State”, and

(II) by the substitution for “company not resident in the State” of “company, not being a company which, by virtue of the law of a Member State of the European Communities, is resident for the purposes of tax in such a Member State”,

and

(c) in section 420 by the insertion in subsection (1) after “trade” of “in respect of which the company is within the charge to corporation tax”.

(2) This section shall apply as respects accounting periods ending on or after the 1st day of July, 1998.

79 Amendment of section 130 (matters to be treated as distributions) of Principal Act.

79.—(1) Section 130 of the Principal Act is hereby amended—

(a) in subsection (3)—

(i) in paragraph (b) by the substitution for “also so resident” of “,being a company which, by virtue of the law of a Member State of the European Communities, is resident for the purposes of tax in such a Member State”, and

(ii) by the addition, after paragraph (b) of the following paragraph:

“(c) For the purposes of this subsection and subsection (4), ‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State.”,

and

(b) in subsection (4)(c) by the substitution for “not resident in the State” of “, not being a company which, by virtue of the law of a Member State of the European Communities, is resident for the purposes of tax in such a Member State”.

(2) This section shall apply as respects accounting periods ending on or after the 1st day of July, 1998.

80 Amendment of section 486 corporation tax: relief for gifts to First Step) of Principal Act.

80.—Section 486 of the Principal Act is hereby amended—

(a) in subsection (2)(a), by the substitution for “before the 1st day of January, 2000” of “on or before the 31st day of December, 2002”, and

(b) in subsection (4)(b)—

(i) in subparagraph (iii), by the substitution for “1996, 1997, 1998 or 1999” of “1999, 2000, 2001 or 2002”, and

(ii) in subparagraph (iv), by the substitution for “commencing on the 1st day of June, 1999, and ending on the 31st day of December, 1999” of “commencing on the 1st day of June, 2002, and ending on the 31st day of December, 2002”.

81 Amendment of Schedule 24 (relief from income tax and corporation tax by means of credit in respect of foreign tax) to Principal Act.

81.—Schedule 24 to the Principal Act is hereby amended—

(a) in paragraph 4(4)(c) by the substitution for “10 per cent” of “20 per cent”,

(b) in paragraph 9A—

(i) in subparagraph (2) by the insertion after “shall be construed as” of “including”, and

(ii) in subparagraph (5) in clause (a) by the insertion after “government of the territory” of “except, in respect of taxes covered by those arrangements, to the extent that credit may not be given for that tax under those arrangements”,

and

(c) in subclauses (i) and (iii) of paragraph 9B(5) (b)—

(i) by the substitution of “controls” for “owns” in each place where it occurs, and

(ii) by the substitution of “voting power” for “ordinary share capital” in each place where it occurs.

82 Company residence.

82.—(1) Chapter 2 of Part 2 of the Principal Act is hereby amended by the insertion after section 23 of the following section:

“23A.—(1) (a) In this section—

‘arrangements’ means arrangements having the force of law by virtue of section 826;

‘relevant company’ means a company—

(i) which is under the control, whether directly or indirectly, of a person or persons who is or are—

(I) by virtue of the law of any relevant territory, resident for the purposes of tax in a relevant territory or relevant territories, and

(II) not under the control, whether directly or indirectly, of a person who is, or persons who are, not so resident,

or

(ii) which is, or is related to, a company the principal class of the shares of which is substantially and regularly traded on one or more than one recognised stock exchange in a relevant territory or territories;

‘relevant territory’ means—

(i) a Member State of the European Communities, or

(ii) not being such a Member State, a territory with the government of which arrangements have been made;

‘tax’, in relation to a relevant territory other than the State, means any tax imposed in that territory which corresponds to income tax or corporation tax.

(b) For the purposes of—

(i) this section—

(I) a company shall be treated as related to another company if one company is a 50 per cent subsidiary of the other company or both companies are 50 per cent subsidiaries of a third company,

(II) a company shall be a 50 per cent subsidiary of another company if and so long as not less than 50 per cent of its ordinary share capital is owned directly or indirectly by that other company, and

(III) sections 412 to 418 shall apply as those sections would apply for the purposes of Chapter 5 of Part 12 if—

(A) ‘50 per cent’ were substituted for ‘75 per cent’ in each place where it occurs in those sections, and

(B) subparagraph (iii) of section 411(1)(c) were deleted,

and

(ii) the definition of ‘relevant company’ control shall be construed in accordance with subsections (2) to (6) of section 432 as if in subsection (6) of that section for ‘5 or fewer participators’ there were substituted—

(I) in so far as paragraph (i)(I) of that definition is concerned, ‘persons who, by virtue of the law of any relevant territory (within the meaning of section 23A), are resident for the purposes of tax in a relevant territory or relevant territories’, and

(II) in so far as paragraph (i)(II) of that definition is concerned, ‘persons not resident for the purposes of tax in a relevant territory (within the meaning of section 23A)’.

(2) Subject to subsections (3) and (4), a company which is incorporated in the State shall be regarded for the purposes of the Tax Acts and the Capital Gains Tax Acts as resident in the State.

(3) Subsection (2) shall not apply to a company incorporated in the State if the company is a relevant company and—

(a) carries on a trade in the State, or

(b) is related to a company which carries on a trade in the State.

(4) Notwithstanding subsection (2), a company which is regarded for the purposes of any arrangements as resident in a territory other than the State and not resident in the State shall be treated for the purposes of the Tax Acts and the Capital Gains Tax Acts as not resident in the State.”.

(2) This section shall apply—

(a) in the case of companies which are incorporated on or after the 11th day of February, 1999, as on and from that day, and

(b) in the case of companies which were incorporated before the 11th day of February, 1999, as on and from the 1st day of October, 1999.

83 Amendment of section 882 (particulars to be supplied by new companies) of Principal Act.

83.—(1) The Principal Act is hereby amended in Chapter 2 of Part 38 by the substitution for section 882 of the following section:

“882.—(1) (a) In this section—

‘secretary’ includes persons mentioned in section 1044(2) and, in the case of a company not resident in the State, the agent, manager, factor or other representative of the company;

‘settlor’ and ‘settlement’ have the same meanings as in section 10;

‘tax’, in relation to a territory other than the State, means any tax imposed in that territory which corresponds to income tax or corporation tax;

‘ultimate beneficial owners’, in relation to a company, means—

(i) the individual or individuals who have control of the company, or

(ii) where a person, whether alone or together with other persons, who controls the company controls it in the capacity as the trustee of a settlement, any person who in relation to the settlement—

(I) is a settlor, or

(II) is, or can under any scheme or arrangement reasonably expect to become, a beneficiary under the settlement, or

(III) where such settlor or beneficiary, as the case may be, is a company, the ultimate beneficial owners of that company.

(b) For the purposes of this section, control shall be construed in accordance with section 432.

(2) Every company which is incorporated in the State or which commences to carry on a trade, profession or business in the State shall, in every case within 30 days of—

(a) the date on which it commences to carry on a trade, profession or business, wherever carried on,

(b) the date at which there is a material change in information previously delivered by the company under this section, and

(c) the giving of a notice to the company by an inspector requiring a statement under this section,

deliver to the Revenue Commissioners a statement in writing containing particulars of—

(i) in the case of every company—

(I) the name of the company,

(II) the address of the company's registered office,

(III) the address of its principal place of business,

(IV) the name and address of the secretary of the company,

(V) the date of commencement of the trade, profession or business,

(VI) the nature of the trade, profession or business,

(VII) the date up to which accounts relating to such trade, profession or business will be made up, and

(VIII) such other information as the Revenue Commissioners consider necessary for the purposes of the Tax Acts;

(ii) in the case of a company which is incorporated, but not resident, in the State—

(I) the name of the territory in which the company is, by virtue of the law of that territory, resident for tax purposes,

(II) where subsection (2) of section 23A does not apply by virtue of subsection (3) of that section the name and address of the company referred to in that latter subsection which carries on a trade in the State, and

(III) where the company is treated as not resident in the State by virtue only of subsection (4) of section 23A—

(A) if the company is controlled by another company the principal class of the shares of which is substantially and regularly trade on one or more than one recognised stock exchange in a relevant territory (within the meaning of section 23A) or territories, the name of the other company and the address of its registered office, and

(B) in any other case, the name and address of the individuals who are the ultimate beneficial owners of the company,

and

(iii) in the case of a company which is neither incorporated in the State nor resident in the State but which carries on a trade, profession or business in the State—

(I) the address of the company's principal place of business in the State,

(II) the name and address of the agent, manager, factor or other representative of the company, and

(III) the date of commencement of the company's trade, profession or business in the State.

(3) Where a company fails to deliver a statement which it is required to deliver under this section then, notwithstanding any obligations as to secrecy or other restriction upon disclosure of information imposed by or under any statute or otherwise, the Revenue Commissioners may give a notice in writing to the registrar of companies (within the meaning of the Companies Act, 1963) stating that the company has so failed to deliver a statement under this section.”.

(2) This section shall apply—

(a) in the case of companies which are incorporated on or after the 11th day of February, 1999, as on and from that day, and

(b) in the case of companies which were incorporated before the 11th day of February, 1999, as on and from the 1st day of October, 1999.

84 Amendment of Chapter 2 (other corporation tax penalties) of Part 47 of Principal Act.

84.—(1) The Principal Act is hereby amended in Chapter 2 of Part 47—

(a) in section 1071 by the insertion after subsection (2) of the following subsection:

“(2A) (a) Where at any time not earlier than 3 months after the time at which a return is required to be delivered by a company in accordance with section 884, the company has failed to pay any penalty to which it is liable under subsection (1)(a) or (2) for failing to deliver the return, the secretary of the company shall, in addition to any penalty to which the secretary is liable under this section, be liable to pay such amount of any penalty to which the company is so liable as is not paid by the company.

(b) Where in accordance with paragraph (a) the secretary of a company pays any amount of a penalty to which the company is liable, the secretary shall be entitled to recover a sum equal to that amount from the company.”,

(b) by the substitution for section 1073 of the following section:

“1073.—(1) Where a company fails to deliver a statement which it is required to deliver under section 882—

(a) the company shall be liable to a penalty of £500 and, if the failure continues after judgement has been given by the court before which proceedings for the penalty have been commenced, to a further penalty of £50 for each day on which the failure so continues, and

(b) the secretary of the company shall be liable to a separate penalty of £100.

(2) (a) Where at any time not earlier than 3 months after the time at which a statement is required to be delivered by a company in accordance with section 882, the company has failed to pay any penalty to which it is liable under subsection (1)(a) for failing to deliver the statement, the secretary of the company shall, in addition to any penalty to which the secretary is liable under subsection (1)(b), be liable to pay such amount of any penalty to which the company is so liable as is not paid by the company.

(b) Where in accordance with paragraph (a) the secretary of a company pays any amount of a penalty to which the company is liable, the secretary shall be entitled to recover a sum equal to that amount from the company.”,

and

(c) in section 1076 by the substitution for subsection (1) of the following subsection:

“(1) In this Chapter,‘secretary’ includes—

(a) persons mentioned in section 1044(2) and, in the case of a company which is not resident in the State, the agent, manager, factor or other representative of the company, and

(b) in the case of a company the secretary (within the meaning of section 175 of the Companies Act, 1963) of which is not an individual resident in the State, an individual resident in the State who is a director of the company.”.

(2) This section shall apply as on and from the 1st day of March, 1999.

85 Amendment of sections 198, 710 and 734 of Principal Act.

85.—The Principal Act is hereby amended—

(a) in section 198(2), by the substitution of the following paragraphs for paragraphs (a) and (b):

“(a) as if in section 445 the following subsection were substituted for subsection (2) of that section:

‘(2) Subject to subsections (7) and (8), the Minister may give a certificate certifying that such trading operations of a qualified company as are specified in the certificate are, with effect from a date specified in the certificate, relevant trading operations for the purpose of this section.’,

and

(b) as if in section 446 the following subsection were substituted for subsection (2) of that section:

‘(2) Subject to subsections (7) and (9), the Minister may give a certificate certifying that such trading operations of a company as are specified in the certificate are, with effect from a date specified in the certificate, relevant trading operations for the purpose of this section.’.”,

(b) in section 710(2), by the substitution of the following paragraph for paragraph (b):

“(b) In applying the definition of ‘foreign life assurance business’ in section 451(1) for the purposes of paragraph (a), section 446 shall apply as if the following subsection were substituted for subsection (2) of that section:

‘(2) Subject to subsections (7) and (9), the Minister may give a certificate certifying that such trading operations of a company as are specified in the certificate are, with effect from a date specified in the certificate, relevant trading operations for the purpose of this section.’.”,

and

(c) in section 734(1)(c), by the substitution of the following subparagraphs for subparagraphs (i) and (ii):

“(i) in section 445 the following subsection were substituted for subsection (2) of that section:

‘(2) Subject to subsections (7) and (8), the Minister may give a certificate certifying that such trading operations of a qualified company as are specified in the certificate are, with effect from a date specified in the certificate, relevant trading operations for the purpose of this section.’,

and

(ii) in section 446 the following subsection were substituted for subsection (2) of that section:

‘(2) Subject to subsections (7) and (9), the Minister may give a certificate certifying that such trading operations of a company as are specified in the certificate are, with effect from a date specified in the certificate, relevant trading operations for the purpose of this section.’.”.

86 Amendment of section 707 (management expenses) of Principal Act.

86.—(1) Section 707 of the Principal Act is hereby amended in subsection (1) by the substitution for paragraph (b) of the following:

“(b) no deduction shall be made under section 83(2)(b) other than in respect of the amount of any income (other than receipts from premiums) which, if the profits of the company were chargeable to corporation tax under Case I of Schedule D, would be taken into account in computing those profits and any such deduction from the amount treated as expenses of management under that section shall not be regarded as reducing acquisition expenses within the meaning of section 708.”.

(2) This section shall be deemed to have applied as respects income accruing for accounting periods commencing on or after the 1st day of January, 1999.

Chapter 8 Capital Gains Tax

87 Amendment of section 541A (treatment of debts on a change in currency) of Principal Act.

87.—(1) Section 541A (inserted by the Finance Act, 1998) of the Principal Act is hereby amended—

(a) in subsection (2) by the substitution of “Subject to subsection (4) and notwithstanding any other provision of the Capital Gains Tax Acts” for “Notwithstanding any other provision of the Capital Gains Tax Acts”,

and

(b) by the insertion after subsection (3) of the following subsection:

“(4) (a) In this subsection—

‘assurance company’ has the meaning assigned to it in section 706;

‘life business fund’ has the meaning assigned to it in section 719;

‘special investment fund’ has the meaning assigned to it in section 723;

‘special investment scheme’ has the meaning assigned to it in section 737;

‘undertaking for collective investment’ has the meaning assigned to it in section 738.

(b) Where the person referred to in subsection (1) is a company and either—

(i) the company is an assurance company and the debt referred to in that subsection is an asset of the company's life business fund, or

(ii) the company is an undertaking for collective investment and the debt referred to in that subsection is an asset of the undertaking,

subsection (1) shall not apply and where the day (in this paragraph referred to as ‘the deemed disposal day’) on which, but for this paragraph, the debt would be deemed to be disposed of and reacquired in accordance with subsection (1), is not the day on which an accounting period of the company ends—

(I) in case of an assurance company, section 719(2) shall apply in respect of the debt as if, for this purpose only, the deemed disposal day was the day on which an accounting period of the company ends and the chargeable gain or allowable loss thereby accruing shall be included in the net amount (within the meaning of section 720) in respect of the accounting period in which the deemed disposal day falls, and

(II) in case of an undertaking for collective investment, section 738(4)(a) shall apply in respect of the debt as if, for this purpose only, the deemed disposal day was the day on which an accounting period of the company ends and the chargeable gain or allowable loss thereby accruing shall be included in the net amount (within the meaning of section 738(4)(b)) in respect of the accounting period in which the deemed disposal day falls.

(c) Where the person referred to in subsection (1) is an undertaking for collective investment and is not a company, subsection (2) shall not apply but the chargeable gain or allowable loss which accrues to the undertaking by virtue of subsection (1) shall be treated as accruing to the undertaking by virtue of paragraph (a) of section 738(4) and the provisions of that section shall apply accordingly.

(d) Subsection (2) shall not apply to a debt which is—

(i) an asset of a special investment fund of an assurance company, or

(ii) an asset which is subject to any trust created pursuant to a special investment scheme.”.

(2) This section shall be deemed to have applied as on and from the 31st day of December, 1998.

88 Amendment of Chapter 3 (assets held in a fiduciary or representative capacity, inheritances and settlements) of Part 19 of Principal Act.

88.—(1) Part 19 of the Principal Act is hereby amended in Chapter 3 by the insertion after section 579 of the following sections:

“Attribution of gains to beneficiaries.	579A.—(1) (a) For the purposes of this section and the following sections of this Chapter, ‘capital payments’ means any payment which is not chargeable to income tax on the recipient or, in the case of a recipient who is neither resident nor ordinarily resident in the State, any payment received otherwise than as income, but does not include a payment under a transaction entered into at arm's length. (b) In paragraph (a) references to a payment include references to the transfer of an asset and the conferring of any benefit, and to any occasion on which settled property becomes property to which section 567(2) applies. (c) The amount of a capital payment made by way of loan, and of any other capital payment which is not an outright payment of money, shall be taken to be equal to the value of the benefit conferred by it. (d) A capital payment shall be treated as received by a beneficiary from the trustees of a settlement if— (i) the beneficiary receives it from the trustees directly or indirectly, (ii) it is directly or indirectly applied by the trustees in payment of any debt of the beneficiary or is otherwise paid for the benefit of the beneficiary, or (iii) it is received by a third party at the beneficiary's direction. (2) Subject to subsection (10), this section shall apply to a settlement for any year of assessment during which the trustees are, at no time, neither resident nor ordinarily resident in the State. (3) There shall be computed in respect of every year of assessment for which this section applies the amount on which the trustees would have been chargeable to capital gains tax under section 31 if they had been resident and ordinarily resident in the State in the year of assessment and that amount, together with the corresponding amount in respect of any earlier such year of assessment, so far as not already treated under subsection (4) or section 579F(2) as chargeable gains accruing to beneficiaries under the settlement, is in this section referred to as ‘the trust gains for the year of assessment’. (4) Subject to this section, the trust gains for a year of assessment shall be treated for the purposes of the Capital Gains Tax Acts as chargeable gains accruing in the year of assessment to beneficiaries of the settlement who receive capital payments from the trustees in the year of assessment or have received such payments in any earlier year of assessment. (5) The attribution of chargeable gains to beneficiaries under subsection (4) shall be made in proportion to, but shall not exceed, the amounts of capital payments received by them. (6) A capital payment shall be left out of account for the purposes of subsections (4) and (5) to the extent that chargeable gains have, by reason of the payment, been treated as accruing to the recipient in an earlier year of assessment. (7) A beneficiary shall not be charged to tax on chargeable gains treated by virtue of subsection (4) as accruing to him or her in any year of assessment unless he or she is domiciled in the State at some time in that year of assessment. (8) For the purposes of this section a settlement arising under a will or intestacy shall be treated as made by the testator or, as the case may be, intestate at the time of death. (9) In any case in which the amount of any capital gains tax payable by a beneficiary under a settlement in accordance with this section is paid by the trustees of the settlement, such amount shall not for the purposes of income tax or capital gains tax be regarded as a payment to the beneficiary. (10) Subsection (2) shall not apply in relation to any year of assessment beginning before the 6th day of April, 1999, and the references in subsections (4) and (5) to capital payments received by beneficiaries do not include references to any payments received before the 11th day of February, 1999, or any payments received on or after that date so far as they represent a chargeable gain which accrued to the trustees in respect of a disposal by the trustees before the 11th day of February, 1999. (11) Where this section applies so as to charge a person to tax on chargeable gains, section 579 shall not apply in respect of those chargeable gains.
Trustees ceasing to be resident in the State.	579B.—(1) In this section and in the following sections of this Chapter— ‘arrangements’ means arrangements having the force of law by virtue of section 826 (as extended to capital gains tax by section 828); ‘the new assets’ and ‘the old assets’ have the meaning assigned, respectively, to them by section 597(4). (2) This section shall apply where the trustees of a settlement become at any time (hereafter in this section referred to as the ‘relevant time’) neither resident nor ordinarily resident in the State. (3) The trustees to whom this section applies shall, for the purposes of the Capital Gains Tax Acts, be deemed— (a) to have disposed of the defined assets immediately before the relevant time, and (b) immediately to have reacquired them, at their market value at that time. (4) Subject to subsections (5) and (6), the defined assets are all assets constituting settled property of the settlement immediately before the relevant time. (5) If immediately after the relevant time— (a) the trustees carry on a trade in the State through a branch or agency, and (b) any assets are situated in the State and either used in or for the purposes of the trade or used or held for the purposes of the branch or agency, the assets falling within paragraph (b) shall not be defined assets. (6) Assets shall not be defined assets if— (a) they are of a description specified in any arrangements, and (b) the trustees would, were they to dispose of them immediately before the relevant time, fall to be regarded for the purposes of the arrangements as not being liable in the State to tax on gains accruing to them on the disposal. (7) Notwithstanding anything in that section— (a) section 597 shall not apply where the trustees— (i) have disposed of the old assets, or their interest in them, before the relevant time, and (ii) acquire the new assets, or their interest in them, after the relevant time, and (b) where under section 597 a chargeable gain accruing on a disposal of old assets is treated as not accruing until a time later (being the time that the new assets cease to be used for the purposes of a trade or other purposes as referred to in subsection (2) of that section) than the time of the disposal, and, but for this subsection, the later time would fall after the relevant time, the chargeable gain shall be treated as accruing immediately before the relevant time, unless the new assets are excepted from the application of this subsection by subsection (8). (8) If at the time when the new assets are acquired— (a) the trustees carry on a trade in the State through a branch or agency, and (b) any new assets, which immediately after the relevant time, are situated in the State and either used in or for the purposes of the trade or used or held for the purposes of the branch or agency, the assets falling within paragraph (b) shall be excepted from the application of subsection (7).
Death of trustee: special rules.	579C.—(1) Subsection (2) applies where— (a) section 579B applies as a result of the death of a trustee of a settlement, and (b) within the period of 6 months beginning with the death, the trustees of the settlement become resident and ordinarily resident in the State. (2) Section 579B shall apply as if the defined assets were restricted to such assets (if any) as— (a) would be defined assets apart from this section, and (b) fall within subsection (3). (3) Assets fall within this subsection if they were disposed of by the trustees in the period which— (a) begins with the death, and (b) ends when the trustees become resident and ordinarily resident in the State. (4) Where— (a) at any time the trustees of a settlement become resident and ordinarily resident in the State as a result of the death of a trustee of the settlement, and (b) section 579B applies as regards the trustees of the settlement in circumstances where the relevant time (within the meaning of that section) falls within the period of 6 months beginning with the death, that section shall apply as if the defined assets were restricted to such assets (if any)— (i) as would be defined assets but for this section, and (ii) which the trustees acquired in the period beginning with the death and ending with the relevant time.
Past trustees: liability for tax.	579D.—(1) In this section ‘specified period’, in relation to a year of assessment, means the period beginning with the specified return date for the year of assessment (within the meaning of section 950) and ending 3 years after the time when a return under section 951 for the year of assessment is delivered to the appropriate inspector (within the meaning of section 950). (2) For the purposes of this section— (a) where the relevant time (within the meaning of section 579B) falls within the period of 12 months beginning with the 11th day of February, 1999, the relevant period is the period beginning with that day and ending with the relevant time, and (b) in any other case, the relevant period is the period of 12 months ending with the relevant time. (3) This section shall apply at any time on or after the 11th day of February, 1999, where— (a) section 579B applies as regards the trustees (in this section referred to as ‘migrating trustees’) of a settlement, and (b) any tax, which is payable by the migrating trustees in respect of a chargeable gain accruing to them for a year of assessment (in this section referred to as ‘the year of assessment concerned’) by virtue of section 579B(3), is not paid within 6 months after the date on or before which the tax is due and payable. (4) The Revenue Commissioners may, at any time before the end of the specified period in relation to the year of assessment concerned, serve on any person to whom subsection (5) applies, a notice— (a) stating the amount which remains unpaid of the tax payable by the migrating trustees for the year of assessment concerned, and (b) requiring that person to pay that amount within 30 days of the service of the notice. (5) This subsection applies to any person who, at any time within the relevant period, was a trustee of the settlement, other than such a person who— (a) ceased to be a trustee of the settlement before the end of the relevant period, and (b) shows that, when he or she (or in the case of a company, the company) ceased to be a trustee of the settlement, there was no proposal that the trustees might become neither resident nor ordinarily resident in the State. (6) Any amount which a person is required to pay by a notice under this section— (a) may be recovered by that person from the migrating trustees, (b) shall not be allowed as a deduction in computing income, profits, gains or losses for any tax purposes, and (c) may be recovered from that person as if it were tax due by such person.
Trustees ceasing to be liable to Irish tax.	579E.—(1) This section shall apply where the trustees of a settlement, while continuing to be resident and ordinarily resident in the State, become at any time (in this section referred to as ‘the time concerned’) on or after the 11th day of February, 1999, trustees who fall to be regarded for the purposes of any arrangements— (a) as resident in a territory outside the State, and (b) as not liable in the State to tax on gains accruing on disposals of assets (in this section referred to as ‘relevant assets’) which constitute settled property of the settlement and fall within descriptions specified in the arrangements. (2) The trustees shall be deemed for all the purposes of the Capital Gains Tax Acts— (a) to have disposed of their relevant assets immediately before the time concerned, and (b) immediately to have reacquired them, at their market value at that time. (3) Notwithstanding anything in that section— (a) section 597 shall not apply where— (i) the new assets are, or an interest in them is, acquired by the trustees of a settlement, (ii) at the time of the acquisition the trustees are resident and ordinarily resident in the State and fall to be regarded for the purposes of any arrangements as resident in a territory outside the State, (iii) the assets are of a description specified in those arrangements, and (iv) the trustees would, were they to dispose of the assets immediately after the acquisition, fall to be regarded for the purposes of the arrangements as not being liable in the State to tax on gains accruing to them on the disposal, and (b) where under section 597 a chargeable gain accruing on a disposal of the old assets is treated as not accruing until a time later (being the time that the new assets cease to be used for the purposes of a trade or other purposes as set out in subsection (2) of that section) than the time of the disposal, and but for this paragraph, the latter time would fall after the time concerned, the chargeable gain shall be treated as accruing immediately before the time concerned, if— (i) the new assets are of a description specified in any arrangements, and (ii) the trustees would, were they to dispose of the new assets immediately after the time concerned, fall to be regarded for the purposes of those arrangements as not being liable in the State to tax on gains accruing to them on the disposal.
Migrant settlements.	579F.—(1) Where a period (in this section referred to as ‘a non-resident period’) of one or more years of assessment for which section 579A applies to a settlement, succeeds a period (in this section referred to as ‘a resident period’) of one or more years of assessment for each of which section 579A does not apply to the settlement, a capital payment received by a beneficiary in the resident period shall be disregarded for the purposes of section 579A if it was not made in anticipation of a disposal made by the trustees in the non-resident period. (2) Where— (a) a non-resident period is succeeded by a resident period, and (b) the trust gains for the last year of assessment of the non-resident period are not, or not wholly, treated as chargeable gains accruing to beneficiaries, then, subject to subsection (3), those trust gains, or the outstanding part of them, shall be treated as chargeable gains accruing in the first year of assessment of the resident period, to beneficiaries of the settlement who receive capital payments from the trustees in that year of assessment, and so on for the second and subsequent years until the amount treated as accruing to the beneficiaries is equal to the amount of the trust gains for the last year of assessment of the non-resident period. (3) Subsections (5) and (7) of section 579A shall apply in relation to subsection (2) as they apply in relation to subsection (4) of that section.”.

(2) This section shall apply as on and from the 11th day of February, 1999.

89 Amendment of Chapter 4 (shares and securities) of Part 19 of Principal Act.

89.—(1) Part 19 of the Principal Act is hereby amended in Chapter 4 by the substitution for section 590 of the following section: