Finance Act 2000

Type Act

Publication 2000-03-23

State In force

Source Irish Statute Book

articles 166

all declarations (and accompanying certificates) and notifications (not being a notice given to the company by the Revenue Commissioners) which are made or, as the case may be, given to the company in accordance with this Chapter and Schedule 2A.

(b) A company resident in the State shall, on being so required by notice in writing given to the company by the Revenue Commissioners, make available to the Commissioners, within the time specified in the notice—

(i) all declarations, certificates or notifications referred to in paragraph (a) which have been made or, as the case may be, given to the company, or

(ii) such class or classes of such declarations, certificates or notifications as may be specified in the notice.

(c) The Revenue Commissioners may examine or take extracts from or copies of any declarations, certificates or notifications made available to the Commissioners under paragraph (b).”,

(ii) by the substitution of the following for subsection (6):

“(6) This section shall not apply to a relevant distribution where section 831(5) applies in relation to that distribution.”,

and

(iii) by the addition of the following after subsection (6):

“(7) This section shall not apply where a relevant distribution is made by a company resident in the State and that distribution is—

(a) a distribution made out of exempt profits within the meaning of section 140,

(b) a distribution made out of disregarded income within the meaning of section 141 and to which subsection (3)(a) of that section applies, or

(i) in subsection (2)—

(I) by the deletion in paragraph (d) of “or” and by the substitution in paragraph (e)(ii) of “Schedule 2A,” for “Schedule 2A.”, and

(II) by the addition of the following after paragraph (e):

“(f) an approved body of persons which—

(i) is entitled to exemption from income tax under Schedule F in respect of the relevant distribution by virtue of section 235(2), and

(ii) has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 7A of Schedule 2A,

(g) a designated broker who—

(i) is receiving the relevant distribution as all or part of the relevant income or gains (within the meaning of section 838) of a special portfolio investment account, and

(ii) has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 7B of Schedule 2A.”,

and

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

“(3) For the purposes of subsection (2) and Schedule 2A—

(a) a collective investment undertaking which receives a relevant distribution, and

(b) a designated broker who receives a relevant distribution as all or part of the relevant income or gains (within the meaning of section 838) of a special portfolio investment account, shall be treated as being beneficially entitled to the relevant distribution.”,

(d) in section 172D—

(i) by the substitution in subsection (3) of the following for paragraph (b):

“(b) a company which is not resident in the State and—

(i) is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory, but is not under the control, whether directly or indirectly, of a person or persons who is or are resident in the State,

(ii) is under the control, whether directly or indirectly, of a person or persons who, by virtue of the law of a relevant territory, is or are resident for the purposes of tax in the relevant territory and who is or are, as the case may be, not under the control, whether directly or indirectly, of a person who is, or persons who are, not so resident, or

(iii) the principal class of the shares of which, or—

(I) where the company is a 75 per cent subsidiary of another company, of that other company, or

(II) where the company is wholly-owned by 2 or more companies, of each of those companies,

is substantially and regularly traded on one or more than one recognised stock exchange in a relevant territory or territories or on such other stock exchange as may be approved of by the Minister for Finance for the purposes of this Chapter,

and which has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 9 of Schedule 2A and in relation to which declaration each of the certificates referred to in clause (i), the certificate referred to in clause (ii) or, as the case may be, the certificate referred to in clause (iii), of subparagraph (f) of that paragraph is a current certificate (within the meaning of paragraph 2 of that Schedule) at the time of the making of the relevant distribution.”,

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

“(3A) For the purposes of subsection (3)(b)(i), ‘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 ‘persons resident in the State’.”,

(iii) by the substitution in subsection (4) of “subsection (3)(b)(ii)” for “subsection (3)(b)(i)” in each place where it occurs,

(iv) in subsection (5)—

(I) by the substitution of “subsection (3)(b)(iii)(I)” for “subsection (3)(b)(ii)(II)”, and

(II) by the deletion of “subparagraph (iii) of”,

and

(v) by the addition of the following after subsection (5):

“(6) For the purposes of subsection (3)(b)(iii)(II), a company (in this subsection referred to as an ‘aggregated 100 per cent subsidiary’) shall be treated as being wholly-owned by 2 or more companies (in this subsection referred to as the ‘joint parent companies’) if and so long as 100 per cent of its ordinary share capital is owned directly or indirectly by the joint parent companies, and for the purposes of this subsection—

(a) subsections (2) to (10) of section 9 shall apply as those subsections apply for the purposes of that section, and

(b) sections 412 to 418 shall apply with any necessary modifications as those sections would apply for the purposes of Chapter 5 of Part 12—

(i) if section 411(1)(c) were deleted, and

(ii) if the following subsection were substituted for subsection (1) of section 412:

‘(1) Notwithstanding that at any time a company is an aggregated 100 per cent subsidiary (within the meaning assigned by section 172D(6)) of the joint parent companies (within the meaning assigned by that section), it shall not be treated at that time as such a subsidiary unless additionally at that time—

(a) the joint parent companies are between them beneficially entitled to not less than 100 per cent of any profits available for distribution to equity holders of the company, and

(b) the joint parent companies would be beneficially entitled between them to not less than 100 per cent of any assets of the company available for distribution to its equity holders on a winding-up.'.”,

(e) in section 172E—

(i) in subsection (3)—

(I) by the substitution of the following for paragraphs (a) and (b):

“(a) to accept, and to retain for the longer of the following periods—

(i) a period of 6 years, or

(ii) a period which, in relation to the relevant distributions in respect of which the declaration or notification is made or, as the case may be, given, ends not earlier than 3 years after the date on which the intermediary has ceased to receive relevant distributions on behalf of the person who made the declaration or, as the case may be, gave the notification to the intermediary,

all declarations (and accompanying certificates) and notifications (not being a notice given to the intermediary by the Revenue Commissioners) which are made or, as the case may be, given to the intermediary in accordance with this Chapter and Schedule 2A,

(b) on being so required by notice in writing given to the intermediary by the Revenue Commissioners, to make available to the Commissioners, within the time specified in the notice—

(i) all declarations, certificates or notifications referred to in paragraph (a) which have been made or, as the case may be, given to the intermediary, or

(ii) such class or classes of such declarations, certificates or notifications as may be specified in the notice,”,

and

(II) by the substitution of the following for paragraph (f):

“(f) to provide to the Revenue Commissioners, not later than 3 months after the end of the first year of the operation of the agreement by the intermediary, a report on the intermediary's compliance with the agreement in that year, which report shall be signed by—

(i) if the intermediary is a company, the auditor of the company, or

(ii) if the intermediary is not a company, a person who, if the intermediary were a company, would be qualified to be appointed auditor of the company,

and thereafter, on being required by notice in writing given to the intermediary by the Revenue Commissioners, to provide to the Commissioners, within the time specified in the notice, a similar report in relation to such other period of the operation of the agreement by the intermediary as may be specified in the notice,”,

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

“(3A) The Revenue Commissioners may examine or take extracts from or copies of any declarations, certificates or notifications made available to the Commissioners under subsection (3)(b).”,

and

(iii) by the addition of the following after subsection (7):

“(8) Without prejudice to the operation of subsection (6), the authorisation by the Revenue Commissioners of an intermediary as a qualifying intermediary for the purposes of this Chapter shall cease to have effect on the day before the seventh anniversary of the date from which such authorisation applied; but this shall not prevent—

(a) the intermediary and the Revenue Commissioners from agreeing to renew the qualifying intermediary agreement entered into between them in accordance with subsection (3) or to enter into a further such agreement, and

(b) a further authorisation by the Revenue Commissioners of the intermediary as aqualifying intermediary for the purposes of this Chapter.”,

(f) in section 172F—

(i) in subsection (3)—

(I) by the substitution in paragraph (e) of “For the purposes of this section, but subject to paragraphs (g) and (h)” for “For the purposes of paragraph (d)”,

(II) by the substitution in paragraph (e)(v) of “by way of notice in writing or in electronic format” for “by way of notice in writing given in accordance with subsection (1)” and “Liable Fund, and” for “Liable Fund,”,

(III) by the substitution of the following for subparagraphs (vi) and (vii) of paragraph (e):

“(vi) enters into an agreement with the qualifying intermediary or further specified intermediary, as the case may be, under the terms of which it agrees that if and when required to comply with subsection (7A) it will do so.”,

and

(IV) by the addition of the following after paragraph (f):

“(g) Notwithstanding paragraph (e), where the Revenue Commissioners are satisfied that an intermediary, being a specified intermediary or other specified intermediary referred to in subsection (7A), has failed to comply with that subsection—

(i) the Commissioners may, by notice in writing given to the intermediary, notify it that it shall cease to be treated as a specified intermediary for the purposes of this section from such date as may be specified in the notice, and

(ii) notwithstanding any obligations as to secrecy or other restriction upon disclosure of information imposed by or under statute or otherwise, the Commissioners may make available to any qualifying intermediary (being a depositary bank holding shares in trust for, or on behalf of, the holders of American depositary receipts) or specified intermediary a copy of such notice.

(h) Where subsequently the Revenue Commissioners are satisfied that the intermediary has furnished the information required under subsection (7A) and will in future comply with that subsection if and when requested to do so, the Commissioners may, by further notice in writing given to the intermediary, revoke the notice given to the intermediary under paragraph (g) from such date as may be specified in the further notice, and a copy of that further notice shall be given to any person to whom a copy of the notice under paragraph (g) was given.”,

(ii) by the substitution of the following for subsection (7):

“(7) (a)A qualifying intermediary shall, on being so required by notice in writing given to the qualifying intermediary by the Revenue Commissioners, make a return to the Commissioners, within the time specified in the notice (which shall not be less than 30 days) and as respects such year of assessment as may be specified in the notice (being the year of assessment 1999-2000 or any subsequent year of assessment), showing—

(i) the name and address of—

(I) each company resident in the State from which the qualifying intermediary received, on behalf of another person, a relevant distribution made by that company in the year of assessment to which the return refers, and

(II) each other person from whom the qualifying intermediary received, on behalf of another person, an amount or other asset representing a relevant distribution made by a company resident in the State in the year of assessment to which the return refers,

(ii) the amount of each such relevant distribution,

(iii) the name and address of each person to whom such a relevant distribution, or an amount or other asset representing such a relevant distribution, has been given by the qualifying intermediary, and

(iv) the name and address of each person referred to in subparagraph (iii) in respect of whom a declaration under section 172C(2) or 172D(3) has been received by the qualifying intermediary.

(b) A return required to be made by a qualifying intermediary under paragraph (a) may be confined to such class or classes of relevant distributions as may be specified in the notice given to the qualifying intermediary by the Revenue Commissioners under that paragraph.

(7A) (a) This subsection shall apply where a qualifying intermediary has been required to make a return to the Revenue Commissioners under subsection (7)(a) and a relevant distribution (or an amount or other asset representing a relevant distribution), the details of which are required to be included in that return, has been given by the qualifying intermediary to a specified intermediary.

(b) The qualifying intermediary shall, immediately on receipt of the notice referred to in subsection (7)(a), request the specified intermediary, by way of notice in writing or in electronic format, to notify the qualifying intermediary or the Revenue Commissioners of the name and address of each person to whom the specified intermediary gave such a distribution (or an amount or other asset representing such a distribution) and of the amount of each such distribution.

(c) The specified intermediary shall, within 21 days of the receipt of a notice under paragraph (b), furnish to the qualifying intermediary or, at the discretion of the specified intermediary, to the Revenue Commissioners, by way of notice in writing or in electronic format, the information required under that paragraph.

(d) Where the specified intermediary furnishes the information required under paragraph (b)—

(i) to the qualifying intermediary, the qualifying intermediary shall include that information in the return required to be made by it under subsection (7)(a), or

(ii) to the Revenue Commissioners, the specified intermediary shall, by way of notice in writing or in electronic format, immediately advise the qualifying intermediary of that factand the qualifying intermediary shall include in the return required to be made by it under subsection (7)(a) a statement to the effect that it has been so advised by the specified intermediary.

(e) If any person to whom a specified intermediary gave such a distribution (or an amount or other asset representing such a distribution) is another specified intermediary, the specified intermediary shall, immediately on the receipt of a notice under paragraph (b), request the other specified intermediary, by way of notice in writing or in electronic format, to notify the specified intermediary or the Revenue Commissioners of the name and address of each person to whom it gave such a distribution (or an amount or other asset representing such a distribution) and of the amount of each such distribution.

(f) The other specified intermediary shall, within 21 days of the receipt of a notice under paragraph (e), furnish to the specified intermediary or, at the discretion of the other specified intermediary, to the Revenue Commissioners, by way of notice in writing or in electronic format, the information required under that paragraph.

(g) Where the other specified intermediary furnishes the information required under paragraph (e)—

(i) to the specified intermediary, the specified intermediary shall, by way of notice in writing or in electronic format, immediately transmit that information to the person referred to in paragraph (d) (being the qualifying intermediary or the Revenue Commissioners, as the case may be) to whom it furnishes the information required under paragraph (b), and—

(I) if that person is the qualifying intermediary, the qualifying intermediary shall include that information in the return required to be made by it under subsection (7)(a), or

(II) if that person is the Revenue Commissioners, the specified intermediary shall, by way of notice in writing or in electronic format, immediately advise the qualifying intermediary of the fact that the informationrequired to be furnished by the other specified intermediary under paragraph (e) has been furnished to the specified intermediary and transmitted by the specified intermediary to the Revenue Commissioners in accordance with this paragraph and the qualifying intermediary shall include in the return to be made by it under subsection (7)(a) a statement to the effect that it has been so advised by the specified intermediary.

(ii) to the Revenue Commissioners, the other specified intermediary shall, by way of notice in writing or in electronic format, immediately advise the specified intermediary of that fact, the specified intermediary shall in turn, by way of similar notice, immediately advise the qualifying intermediary of that fact and the qualifying intermediary shall include in the return required to be made by it under subsection (7)(a) a statement to the effect that it has been so advised by the specified intermediary.

(h) Where, in accordance with this subsection, the specified intermediary or the other specified intermediary furnishes information to the Revenue Commissioners in electronic format, such format shall be agreed in advance with the Revenue Commissioners.”,

and

(iii) by the deletion in subsection (8) of “, not later than the 21st day of May following the year of assessment to which the return refers,”.

(g) in section 172G—

(i) in subsection (3)—

(I) by the substitution of the following for paragraphs (a) and (b):

“(a) to accept, and to retain for the longer of the following periods—

(i) a period of 6 years, or

(ii) a period which, in relation to the relevant distributions in respect of which the declaration or notification is made or, as the casemay be, given, ends not earlier than 3 years after the date on which the intermediary has ceased to receive relevant distributions on behalf of the person who made the declaration or, as the case may be, gave the notification to the intermediary,

(b) on being so required by notice in writing given to the intermediary by the Revenue Commissioners, to make available to the Commissioners, within the time specified in the notice—

(i) all declarations, certificates or notifications referred to in paragraph (a) which have been made or, as the case may be, given to the intermediary, or

(ii) such class or classes of such declarations, certificates or notifications as may be specified in the notice,”,

and

(II) by the substitution of the following for paragraph (g):

“(g) to provide to the Revenue Commissioners, not later than 3 months after the end of the first year of the operation of the agreement by the intermediary, a report on the intermediary's compliance with the agreement in that year, which report shall be signed by—

(i) if the intermediary is a company, the auditor of the company, or

(ii) if the intermediary is not a company, a person who, if the intermediary were a company, would be qualified to be appointed auditor of the company,

and”,

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

“(3A) The Revenue Commissioners may examine or take extracts from or copies of any declarations, certificates or notifications made available to the Commissioners under subsection (3)(b).”,

and

(iii) by the addition of the following after subsection (7):

“(8) Without prejudice to the operation of subsection (6), the authorisation by the Revenue Commissioners of an intermediary as an authorised withholding agent for the purposes of this Chapter shall cease to have effect on the day before the seventh anniversary of the date from which such authorisation applied; but this shall not prevent—

(a) the intermediary and the Revenue Commissioners from agreeing to renew the authorised withholding agent agreement entered into between them in accordance with subsection (3) or to enter into a further such agreement, and

(b) a further authorisation by the Revenue Commissioners of the intermediary as an authorised withholding agent for the purposes of this Chapter.”,

(h) in section 172K(1)—

(i) by the deletion in paragraph (f) of “and” and by the substitution in paragraph (g) of “refers, and” for “refers.”, and

(ii) by the addition of the following after paragraph (g):

“(h) in a case where section 172B has not applied to a relevant distribution by virtue of the operation of subsection (7) of that section, whether the relevant distribution is a distribution within paragraph (a), (b) or (c) of that subsection.”,

and

(i) by the insertion of the following section after section 172L:

“Deduction of dividend withholding tax on settlement of market claims.	172LA.—(1) In this section, ‘stockbroker’, means a member firm of the Irish Stock Exchange or of a recognised stock exchange in another territory.
	(2) For the purposes of this section, a market claim shall be deemed to have arisen in relation to a relevant distribution where—
	(a) a company resident in the State has made a relevant distribution to a person (in this section referred to as the ‘recorded owner’) on the basis of the information on the share register of the company at a particular date,
	(b) it subsequently transpires, as a result of an event (in this section referred to as the ‘specified event’), being—
	(i) the sale or purchase of. or
	(ii) the happening, or failure to happen, of another event in relation to,
	the shares or other securities in respect of which the relevant distribution was made, that another person (in this section referred to as the ‘proper owner’) had actually been entitled to receive the relevant distribution, and
	(c) a person (in this section referred to as an ‘accountable person’), being—
	(i) the relevant stockbroker who has acted for the recorded owner in the specified event, or
	(ii) if the recorded owner is a qualifying intermediary or an authorised withholding agent, that intermediary or agent,
	is obliged to pay the relevant distribution to the proper owner or, as may be appropriate, to the relevant stockbroker who has acted for the proper owner in the specified event, which action is in this section referred to as the ‘settlement of the market claim’.
	(3) Notwithstanding any other provision of this Chapter, where a market claim arises, then, if dividend withholding tax had not already been deducted out of the amount of the relevant distribution made by the company resident in the State to the recorded owner—
	(a) the accountable person shall, on the settlement of the market claim, deduct out of the amount of the relevant distribution dividend withholding tax in relation to the relevant distribution,
	(b) the proper owner or, as may be appropriate, the relevant stockbroker who has acted for the proper owner in the specified event shall allow such deduction on the receipt of the residue of the relevant distribution, and
	(c) the accountable person shall be acquitted and discharged of so much money as is represented by the deduction as if that amount of money had actually been paid to the proper owner or, as may be appropriate, to the relevant stockbroker who has acted for the proper owner in the specified event.
	(4) Where subsection (3) applies, the accountable person shall, on the settlement of the market claim, give the proper owner or, as may be appropriate, the relevant stockbroker who has acted for the proper owner in the specified event a statement in writing showing—
	(a) the name and address of the accountable person,
	(b) the name and address of the company which made the relevant distribution,
	(c) the amount of the relevant distribution, and
	(d) the amount of the dividend withholding tax deducted in relation to the relevant distribution.
	(5) Dividend withholding tax which is required to be deducted by the accountable person under subsection (3) shall be paid by the accountable person to the Collector-General within 14 days of the end of the month in which that tax was required to be so deducted, and the dividend withholding tax so due shall be payable without the making of an assessment, but dividend withholding tax which has become so due may be assessed on the accountable person if that tax or any part of it is not paid on or before the due date.
	(6) Dividend withholding tax which is required to be paid in accordance with subsection (5) shall be accompanied by a statement in writing from the accountable person making the payment showing—
	(a) the name and address of that accountable person,
	(b) the name and address of the company or companies which made the relevant distribution or distributions to which the payment relates, and
	(c) the amount of the dividend withholding tax included in the payment.
	(7) An accountable person shall, as respects each year of assessment (being the year of assessment 1999-2000 or any subsequent year of assessment) in which subsection (3) applied in relation to the accountable person and not later than the 21st day of May following that year of assessment, make a return to the Revenue Commissioners showing—
	(a) the name and address of the accountable person, and
	(b) the following details in relation to each market claim to which subsection (3) applied in that year:
	(i) the name and address of the company resident in the State which made the relevant distribution to which the market claim relates,
	(ii) the amount of the relevant distribution concerned, and
	(iii) the amount of the dividend withholding tax in relation to the relevent distribution deducted by the accountable person.
	(8) Subject to subsection (9), every return by an accountable person under subsection (7) shall be made in an electronic format approved by the Revenue Commissioners and shall be accompanied by a declaration made by the accountable person, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
	(9) Where the Revenue Commissioners are satisfied that an accountable person does not have the facilities to make a return under subsection (7) in the format referred to in subsection (8), the return shall be made in writing in a form prescribed or authorised by the Revenue Commissioners and shall be accompanied by a declaration made by the accountable person, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct and complete.
	(10) (a) An accountable person shall keep and retain for a period of 6 years the accountable person’s documents and records relating to market claims arising from relevant distributions made by companies resident in the State.
	(b) An accountable person shall allow the Revenue Commissioners to inspect such documents and records and to verify theaccountable person’s compliance with this section in any other manner considered necessary by the Commissioners.”.

(2) Schedule 2A (inserted by the Finance Act, 1999) is amended—

(a) by the substitution in paragraph 2 of “paragraph 8(f) or 9(f)” for “paragraph 8(f) or subparagraph (f) or (g) of paragraph 9”,

(b) by the insertion of the following after paragraph 7:

“Declaration to be made by approved athletic or amateur sports body

7A. The declaration referred to in section 172C(2)(f)(ii) shall be a declaration in writing to the relevent person which—

(a) is made by the person (in this paragraph referred to as ‘the declarer’) beneficially entitled to the relevant distributions in respect of which the declaration is made,

(b) is signed by the declarer,

(d) declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(f)(i),

(e) contains the name and address of the person,

(f) contains a statement that, at the time when the declaration is made, the relevant distributions in respect of which the declaration is made will be applied for the sole purpose of promoting athletic or amateur games or sports and are so treated by the Revenue Commissioners,

(g) contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distributions accordingly, and

(h) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.

Declaration to be made by designated stockbroker operating special portfolio investment account

7B. The declaration referred to in section 172C(2)(g)(ii) shall be a declaration in writing to the relevant person which—

(a) is made by the person (in this paragraph referred to as ‘the declarer’) beneficially entitled to the relevant distributions in respect of which the declaration is made,

(b) is signed by the declarer,

(d) declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(g)(i),

(e) contains the name and tax reference number of the person,

(f) contains a statement that, at the time when the declaration is made, the relevant distributions in respect of which the declaration is made will be applied as all or part of the relevant income or gains (within the meaning of section 838) of a special portfolio investment account and are so treated by the Revenue Commissioners,

(h) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.”,

“(ii) a notice in writing from the Revenue Commissioners stating that the Commissioners have noted the contents of the certificate referred to in clause (i),”,

and

(d) in paragraph 9—

(i) by the substitution of the following for subparagraph (f):

“(f) is accompanied by—

(i) a certificate given by the tax authority of the relevant territory in which the company is, by virtue of the law of that territory, resident for the purposes of tax certifying that the company is so resident in that territory, and a certificate signed by the auditor of the company certifying that in his or her opinion the company is not under the control (within the meaning of section 172D(3A)), whether directly or indirectly, of a person or persons who is or are resident in the State,

(ii) a certificate signed by the auditor of the company certifying that in his or her opinion the company is a company which is not resident in the State and is under the control (within the meaning of section 172D(4)(a)), whether directly or indirectly, of a person or persons who, by virtue of the law of a relevant territory, is or are resident for the purposes of tax in such a relevant territory and who is or are, as the case may be, not under the control (within the meaning of section 172D(4)(b)), whether directly or indirectly, of a person who is, or persons who are, not so resident, or

(iii) a certificate signed by the auditor of the company certifying that in his or her opinion the principal class of the shares of the company or—

(I) where the company is a 75 per cent subsidiary (within the meaning of section 172D(5)) of another company, of that other company, or

(II) where the company is wholly-owned (within the meaning of section 172D(6)) by 2 or more companies, of each of those companies,

and

(ii) by the deletion of subparagraph (g).

(3) Subsection (1) (i) shall apply as on and from 10 February 2000.

31 Amendment of section 153 (distributions to certain non-residents) of Principal Act.

31.—As respects distributions made on or after 6 April 2000, section 153 (as amended by the Finance Act, 1999) of the Principal Act is amended—

(a) in subsection (1), by the substitution of the following definition for the definition of “non-resident person”:

“ ‘qualifying non-resident person’, in relation to a distribution, means the person beneficially entitled to the distribution, being—

(a) a person, other than a company, who—

(i) is neither resident nor ordinarily resident in the State, and

(ii) is, by virtue of the law of a relevant territory, resident for the purposes of tax in the relevant territory,

(b) a company which is not resident in the State and—

(iii) the principal class of the shares of which, or—

(I) where the company is a 75 per cent subsidiary of another company, of that other company, or

(II) where the company is wholly-owned by 2 or more companies, of each of those companies,

(b) by the insertion of the following subsection after subsection (1):

“(1A) For the purposes of paragraph (b)(i) of the definition of ‘qualifying non-resident person’, ‘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 ‘persons resident in the State’.”,

(c) in subsection (2), by the substitution of “paragraph (b)(ii) of the definition of ‘qualifying non-resident person’ ” for “paragraph (b)(i) of the definition of ‘non-resident person’ ”,

(d) in subsection (3)—

(i) by the substitution of “paragraph (b)(iii)(I) of the definition of qualifying non-resident person’ ” for “paragraph (b)(ii)(II) of the definition of ‘non-resident person’ ”, and

(ii) by the deletion of “subparagraph (iii) of”,

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

“(3A) For the purposes of paragraph (b)(iii)(II) of the definition of ‘qualifying non-resident person’, a company (in this subsection referred to as an ‘aggregated 100 per cent subsidiary’) shall be treated as being wholly-owned by 2 or more companies (in this subsection referred to as the ‘joint parent companies’) if and so long as 100 per cent of its ordinary share capital is owned directly or indirectly by the joint parent companies, and for the purposes of this subsection—

(a) subsections (2) to (10) of section 9 shall apply as those subsections apply for the purposes of that section, and

(b) sections 412 to 418 shall apply with any necessary modifications as those sections would apply for the purposes of Chapter 5 of Part 12 if—

(i) section 411(1)(c) were deleted, and

(ii) the following subsection were substituted for subsection (1) of section 412:

‘(1) Notwithstanding that at any time a company is an aggregated 100 per cent subsidiary (within the meaning assigned by section 153(3A)) of the joint parent companies (within the meaning so assigned), it shall not be treated at that time as such a subsidiary unless additionally at that time—

(a) the joint parent companies are between them beneficially entitled to not less than 100 per cent of any profits available for distribution to equity holders of the company, and

(f) in subsection (4), by the substitution of “qualifying non-resident person” for “non-resident person”, and

(g) by the addition of the following subsection after subsection (5):

“(6) Where for any year of assessment the income of a person, being an individual who for that year of assessment is neither resident nor ordinarily resident in the State but is not a qualifying non-resident person, includes an amount in respect of a distribution made by a company resident in the State, then—

(a) notwithstanding section 15(2), income tax shall not be chargeable in respect of that distribution at a rate in excess of the standard rate, and

(b) the amount or value of the distribution shall be treated for the purposes of sections 237 and 238 as not brought into charge to income tax.”.

32 Amendment of section 700 (special computational provisions) of Principal Act.

32.—(1) Section 700 of the Principal Act is amended by the insertion of the following subsection after subsection (1):

“(1A) For the purposes of subsection (1), ‘society’ shall include a credit union which is—

(a) registered as such under the Credit Union Act, 1997, or

(b) deemed to be so registered by virtue of section 5(3) of that Act.”.

(2) This section shall be deemed to have come into operation as on and from 6 April 1999.

33 Amendment of section 831 (implementation of Council Directive No. 90/435/EEC concerning the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States) of Principal Act.

33.—As respects distributions made on or after 6 April 2000, section 831 of the Principal Act is amended—

(a) in subsection (1)(a), by the substitution of the following definition for the definition of “company”:

“ ‘company’, other than in the expression ‘unlimited company’ in subsection (5A), means a company of a Member State;”,

and

(b) by the insertion of the following subsection after subsection (5) (inserted by the Finance Act, 1999):

“(5A) Subsection (5) shall apply to a distribution made by an unlimited company within the meaning of section 5(2)(c) of the Companies Act, 1963, as it would apply if the unlimited company were a company of a Member State.”.

Chapter 4 Income Tax, Corporation Tax and Capital Gains Tax

34 Amendment of section 198 (certain interest not to be chargeable) of Principal Act.

34.—(1) Section 198 of the Principal Act is amended by the substitution for subsection (1) of the following:

“(1) (a) In this subsection—

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

‘relevant territory’ means—

(i) a Member State of the European Communities other than the State, 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, means any tax imposed in that territory which corresponds to corporation tax in the State.

(b) For the purposes of this subsection, a company shall be regarded as being a resident of a relevant territory if—

(i) in a case where the relevant territory is a territory with the government of which arrangements have been made, the company is regarded as being a resident of that territory under those arrangements, and

(ii) in any other case, the company is by virtue of the law of the relevant territory resident for the purposes of tax in that territory.

(c) Notwithstanding any other provision of the Income Tax Acts but without prejudice to any charge under the Corporation Tax Acts on the profits of such a person—

(i) a company not resident in the State or a person not ordinarily resident in the State shall not be chargeable to income tax in respect of interest paid by—

(I) a company in the course of carrying on relevant trading operations (within the meaning of section 445 or 446), or

(II) a specified collective investment undertaking (within the meaning of section 734),

and

(ii) a company shall not be chargeable to income tax in respect of interest paid by a relevant person (within the meaning of section 246) in the ordinary course of a trade or business carried on by that person if the company—

(I) is not resident in the State, and

(II) is regarded for the purposes of this subsection as being a resident of a relevant territory.”.

(2) Subsection (1) shall apply as respects interest paid in the year of assessment 2000-2001 and subsequent years of assessment.

35 Capital allowances for, and deduction in respect of, vehicles.

35.—Part 11 of the Principal Act is amended—

(a) in subsection (2) of section 373—

(i) in paragraph (k), by the substitution of “mechanically propelled vehicle;” for “mechanically propelled vehicle.”, and

(ii) by the insertion of the following after paragraph (k):

“(l) £16,500, where the expenditure was incurred on or after 1 December 1999 on the provision or hiring of a vehicle which, on or after that date was not a used or secondhand vehicle and was first registered in the State under section 131 of the Finance Act, 1992, without having been previously registered in any other state which duly provides for the registration of a mechanically propelled vehicle.”,

and

(b) in subsection (1) of section 376, in the definition of “relevant amount”—

(i) in paragraph (c), by the substitution of “£15,500”, for “£15,500, and”, and

(ii) by the substitution of the following for paragraph (d):

“(d) in relation to qualifying expenditure incurred on or after 2 December 1998 and before 1 December 1999, £16,000,” and

(iii) by the insertion of the following after paragraph (d):

“(e) in relation to qualifying expenditure incurred on or after 1 December 1999, £16,500;”.

36 Amendment of section 268 (meaning of “industrial building or structure”) of Principal Act.

36.—Section 268 of the Principal Act is amended in subsection (1) by the substitution of the following for paragraph (i):

‘(i) for the purposes of a trade which consists of the operation or management of a convalescent home for the provision of medical and nursing care for persons recovering from treatment in a hospital, being a hospital that provides treatment for acutely ill patients, and in respect of which convalescent home the health board in whose functional area the convalescent home is situated, is satisfied that the convalescent home satisfies the requirements of sections 4 and 6 of the Health (Nursing Homes) Act, 1990, and any regulations made under section 6 of that Act as if it were a nursing home within the meaning of section 2 of that Act.”.

37 Amendment of section 333 (double rent allowance in respect of rent paid for certain business premises) of Principal Act.

37.—Section 333 of the Principal Act is amended by the substitution in subsection (1)(a) of the following for the definition of “qualifying lease”:

“qualifying lease’ means, subject to subsection (4), a lease in respect of a qualifying premises granted in the qualifying period, or granted in any subsequent period ending on or before 31 December 1999, on bona fide commercial terms by a lessor to a lessee not connected with the lessor, or with any other person entitled to a rent in respect of the qualifying premises, whether under that lease or any other lease;”.

38 Amendment of section 20 (amendment ofprovisions relating to Custom House Docks Area) of Urban Renewal Act, 1998.

38.—Section 20(1)(c) of the Urban Renewal Act, 1998, is repealed.

39 Amendment of section 324 (double rent allowance in respect of rent paid for certain business premises) of Principal Act.

39.—(1) Section 324 of the Principal Act is amended by the insertion after subsection (4) of the following:

“(5) Notwithstanding any other provision of this section, subsection (2) shall not apply—

(a) in respect of rent payable, under a qualifying lease, for any part of a relevant rental period between 3 December 1998 and 31 December 2003 unless—

(i) in the case of a qualifying premises within an area or areas included in the definition of ‘the Custom House Docks Area’ by virtue of being described in an order of the Minister for Finance made under section 322(2), an agreement in writing or a contract in writing to secure the development of the building or structure, which comprises the qualifying premises or in which the qualifying premises is located, was entered into in the specified period, but by 2 December 1998, with the Dublin Docklands Development Authority (within the meaning of section 14 of the Dublin Docklands Development Authority Act, 1997), or

(ii) in the case of any other qualifying premises, an agreement in writing or a contract in writing to secure the development of the building or structure, which comprises the qualifying premises or in which the qualifying premises is located, was entered into in the specified period, but by 2 December 1998, and such development was wholly or mainly completed before 1 January 2000,

(b) in respect of rent payable, under a qualifying lease, for any part of a relevant rental period between 1 January 2004 and 31 December 2008, in the case of a qualifying premises to which subsection (2) applies by virtue of paragraph (a)(i),

(c) in respect of rent payable, under a qualifying lease, for any part of a relevant rental period between 1 January 2004 and 31 December 2008, in the case of a qualifying premises to which subsection (2) applies by virtue of paragraph (a)(ii), unless—

(i) the construction or refurbishment of the qualifying premises, which is the subject of the qualifying lease, was completed prior to 1 April 1998, or

(ii) (I) the construction or refurbishment of the qualifying premises, which is the subject of the qualifying lease, commenced prior to 1 April 1998, and

(II) such premises was occupied by a lessee, under a qualifying lease, prior to 9 February 1999,

(d) in respect of rent payable, under a qualifying lease, for any part of a relevant rental period after 31 December 2008.”.

(2) This section shall be deemed to have applied as on and from 3 December 1998.

40 Amendment of Part 9 (principal provisions relating to relief for capital expenditure) of Principal Act.

40.—Part 9 of the Principal Act is amended—

(a) in section 278(2), by the deletion of “and, where it is so made, section 304(4) shall not apply”,

(b) in section 300—

(i) in subsection (1), by the substitution of “section 284(6) or 298” for “section 298”, and

(ii) by the insertion of the following subsection after subsection (3)—

“(4) Any wear and tear allowance made to any person under or by virtue of section 284(6) shall be made in charging that person's income under Case V of Schedule D.”,

(i) in subsection (1) by the deletion of “as it applies”,

(ii) in subsection (4)—

(I) by the deletion of “Subject to section 278(2),”,

(II) by the insertion of “, or in charging profits or gains of any description, as the case may be,” after “in taxing a trade”, and

(III) by the insertion of “or in charging the profits or gains, as the case may be,” after “in taxing the trade”,

and

(iii) in subsection (6) by the insertion of the following paragraph after paragraph (b):

“(c) Subsection (4) shall not apply as respects an allowance given by means of discharge or repayment of tax or in charging income under Case V of Schedule D.”,

(d) in section 305(1)—

(i) in paragraph (a) by the insertion of “or in charging income under Case V of Schedule D” after “discharge or repayment of tax”, and

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

“(b) (i) Notwithstanding paragraph (a), where an allowance referred to in that paragraph is available primarily against income of the specified class and the amount of the allowance is greater than the amount of the person's income of that class for the first-mentioned year of assessment (after deducting or setting off any allowances for earlier years), then the person may, by notice in writing given to the inspector not later than 2 years after the end of the year of assessment, elect that the excess shall be deducted from or set off—

(I) in the case of an individual—

(A) against the individual's other income for that year of assessment, or

(B) where the individual, or, being a husband or wife, the individual's spouse, is assessed to tax in accordance with section 1017, firstly, against the individual's other income for that year of assessment and, subsequently, against the income of the individual's husband or wife, as the case may be, for that year of assessment,

(II) in the case of a person other than an individual, against the person's other income for that year of assessment.

(ii) Where an election is made in accordance with subparagraph (i), the excess shall be deducted from or set off against the income referred to in subclause (A) or (B) of clause (I) or in clause (II), as the case may be, and tax shall be discharged or repaid accordingly and only the balance, if any, of the amount of the excess over all the income referred to in subclause (A) or (B) of clause (I) or in clause (II), as the case may be, for that year of assessment shall be deducted from or set off against the person's income of the specified class for succeeding years.”,

(e) in section 405(1) by the substitution of the following for paragraph (a):

“(a) sections 305(1)(b), 308(4) and 420(2) shall not apply as respects that allowance, and”,

and

(f) by the substitution of the following section for section 406:

“Restriction on use of capital allowances on fixtures and fittings for furnished residential accommodation.	406.— Where a person incurs capital expenditure of the type to which subsection (7) of section 284 applies and an allowance is to be made in respect of that expenditure under that section, sections 305(1)(b), 308(4) and 420(2) shall not apply as respects that allowance.”.

41 Capital allowances for computer software.

41.—(1) Part 9 of the Principal Act is amended—

(a) in section 288—

(i) by the substitution in subsection (1)(d) of “that machinery or plant” for “the computer software concerned”,

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

“(3A) Where, in relation to an event referred to in subsection (1)(d), a balancing allowance or balancing charge is to be made to or, as the case may be, on a person for the chargeable period related to that event and following that event, the person retains an interest in the machinery or plant, then, for the purposes of this Chapter—

(a)the amount of capital expenditure still unallowed at the time of the event, which is to be taken into account in calculating the balancing allowance or balancing charge, shall be such portion of the unallowed expenditure relating to the machinery or plant in question as the sale, insurance, salvage or compensation moneys bear to the aggregate of those moneys and the market value of the machinery or plant which remains undisposed of, and the balance of the unallowed expenditure shall be attributed to the machinery or plant which remains undisposed of, and

(b)the amount of capital expenditure incurred on the machinery or plant in question shall be treated as reduced by such portion of that expenditure as the sale, insurance, salvage or compensation moneys bear to the aggregate of those moneys and the market value of the machinery or plant which remains undisposed of.”,

and

(iii) by the insertion in subsection (4) after paragraph (b) of the following:

“(c) Where subsection (3A) applies, the amount of any allowances referred to in paragraph (b) made in respect of the machinery or plant in question shall, for the purposes of this Chapter, be apportioned so that:

(i) such portion of those allowances as the sale, insurance, salvage or compensation moneys bear to the aggregate of those moneys and the market value of the machinery or plant which remains undisposed of, shall be attributed to the grant of the right to use or otherwise deal with, referred to in subsection (1)(d), and

(ii) the balance of those allowances shall be attributed to the machinery or plant which remains undisposed of.”,

and

(b) by the insertion in section 318 after paragraph (a) of the following:

“(aa) as respects machinery or plant consisting of computer software or the right to use or otherwise deal with computer software, where the event is the grant of a right to use or otherwise deal with the whole or part of that machinery or plant, the consideration in money or money's worth received by that person for the grant of the right,”.

(2) This section shall apply as on and from 29 February 2000.

42 Amendment of Chapter 3 (designated areas, designated streets, enterprise areas and multi-storey car parks in certain urban areas) of Part 10 of Principal Act.

42.—(1) Chapter 3 of Part 10 of the Principal Act is amended—

(a) in section 339—

(i) in subsection (1) by the substitution in the definition of “the relevant local authority” of “paragraph (a) or (e) of subsection (2)” for “subsection (2)(a)”, and

(ii) by the insertion in subsection (2), of the following after paragraph (d):

“(e) (i) Where, in relation to the construction or refurbishment of a qualifying building within the meaning of section 343, the relevant local authority gives a certificate in writing on or before 31 May 2000 to the person constructing or refurbishing the qualifying building stating that it is satisfied that not less than 50 per cent of the total cost of the qualifying building and the site thereof had been incurred on or before 31 December 1999, then the reference in paragraph (b) of the definition of ‘qualifying period’ in subsection (1) to the period ending on the 31st day of December, 1999, shall be construed as a reference to the period ending on 31 December 2000.

(ii) In considering whether to give such a certificate, the relevant local authority shall have regard only to guidelines in relation to the giving of such certificates issued by the Department of the Environment and Local Government.”,

(b) in section 340(2), by the substitution of the following for subparagraph (ii):

“(ii) as respects any such area so described in the order, the reference in paragraph (a) of the definition of ‘qualifying period’ in section 339(1) to the period commencing on the 1st day of August, 1994, and ending on the 31st day of July, 1997, shall be construed as a reference to such period as shall be specified in the order in relation to that area, but no such period specified in the order shall commence before 1 August 1994 or end after—

(I) 31 December 1999, or

(II) 31 December 2000, where in relation to the construction or refurbishment of a qualifying building within the meaning of section 343, the relevant local authority gives a certificate in writing on or before 31 May 2000 to the person constructing or refurbishing the qualifying building stating that it is satisfied that not less than 50 per cent of the total cost of the qualifying building and the site thereof had been incurred on or before 31 December 1999 and, in considering whether to give such a certificate, the relevant local authority shall have regard only to guidelines in relation to the giving of such certificates issued by the Department of the Environment and Local Government.”,

(i) by the insertion in subsection (1), before the definition of “the Minister” of the following:

“ ‘property developer’ means a person carrying on a trade which consists wholly or mainly of the construction or refurbishment of buildings or structures with a view to their sale;”,

(ii) by the substitution in subsection (7)(a) of “subsections (8), (9) and (11)” for “subsections (8) and (9)”, and

(iii) by the insertion after subsection (10) of the following subsection:

“(11) Notwithstanding the preceding provisions of this section, this section shall not apply in respect of expenditure incurred on the construction or refurbishment of a qualifying building, the site of which is wholly within an area described in an order referred to in section 340(2)(i)—

(a)where a property developer is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure, and

(b)either the person referred to in paragraph (a) or a person connected (within the meaning of section 10) with that person incurred the expenditure on the construction or refurbishment of the qualifying building concerned.”,

(d) in section 344(1)—

(i) in the definition of “qualifying period”—

(I) by the substitution in paragraph (b) of “30 September 1999” for “the 30th day of June, 1999”, and

(II) by the substitution of the following for paragraph (c):

“(c) 31 December 2002, where, in relation to the construction or refurbishment of the qualifying multi-storey car park concerned (not being a qualifying multi-storey car park any part of the site of which is within either of the county boroughs of Cork or Dublin), the relevant local authority gives a certificate in writing on or before 31 December 2000 to the person constructing or refurbishing the qualifying multi-storey car park stating that it is satisfied that not less than 15 per cent of the total cost of the qualifying multi-storey car park and the site thereof had been incurred on or before 30 September 2000 and, in considering whether to give such a certificate, the relevant local authority shall have regard only to guidelines in relation to the giving of such certificates issued by the Department of the Environment and Local Government for the purposes of this definition;”,

and

(ii) in the definition of “the relevant local authority” by the substitution of the following for paragraph (b):

“(b)in respect of an administrative county, the council of the county concerned,”,

and

(e)in section 345(1A)(b), by the substitution of “30 September 1998” for “the 30th day of June, 1998”.

(2) This section shall apply as on and from 1 July 1999.

43 Amendment of section 360 (interpretation (Chapter 5)) of Part 10 of Principal Act.

43.—(1) Section 360(1) of the Principal Act is amended in the definition of “qualifying period” (inserted by the Finance Act, 1999) by the substitution of “15 per cent” for “50 per cent”.

(2) This section shall apply as on and from 6 April 1999.

44 Amendment of Chapter 7 (qualifying areas) of Part 10 of Principal Act.

44.—(1) Chapter 7 of Part 10 of the Principal Act is amended—

(a) in section 372A(1)—

(i) by the insertion before the definition of “qualifying area” of the following:

“ ‘property developer’ means a person carrying on a trade which consists wholly or mainly of the construction or refurbishment of buildings or structures with a view to their sale;”, and

(ii) in the definition of “qualifying period”, by the substitution of “31 December 2002;” for “the 31st day of July, 2001;”,

(b) in section 372B(1)—

(i) by the substitution of the following for paragraph (b):

“(b) where such an area or areas is or are to be a qualifying area for the purposes of section 372D, one or more of the categories of building or structure mentioned in subsection (2) shall or shall not be a qualifying premises within the meaning of that section,”, and

(ii) in paragraph (c), by the substitution of the following for the words from “or end after—” to the end of the paragraph:

“or end after 31 December 2002.”,

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

“(1) In this section ‘building or structure to which this section applies’ means a building or structure or part of a building or structure the site of which is wholly within a qualifying area and which is to be an industrial building or structure by reason of its use for a purpose specified in section 268(1)(a).”, and

(ii) in subsection (2)(d), by the substitution of “50 per cent” for “25 per cent”,

(d) in section 372D—

(i) in subsection (1), by the insertion after “means a building or structure” of “or part of a building or structure”,

(ii) in subsection (2)(a), by the substitution of “subsections (3) to (5)” for “subsections (3) to (6A)”,

(iii) in subsection (4)(b)—

(I) in subparagraph (i) by the deletion of “and”, and

(II) by the substitution of the following subparagraphs for subparagraph (ii):

“(ii) the following paragraph were substituted for paragraph (b) of subsection (2) of that section:

‘(b) As respects any qualifying expenditure, any allowance made under section 272 and increased under paragraph (a) in respect of that expenditure, whether claimed for one chargeable period or more than one such period, shall not in the aggregate exceed 50 per cent of the amount of that qualifying expenditure.’,

and

(iii) subsections (3) to (7) of that section were deleted.”,

and

(iv) by the deletion of subsections (6) and (6A),

(e) in section 372G(1), in paragraph (a) and paragraph (b) of the definition of “conversion expenditure” by the insertion of “or part of a building” after “a building”,

(f) in section 372H(1), in the definition of “specified building” by the insertion of “or part of a building” after “a building”,

(g) in section 372I(2), by the insertion of the following paragraph after paragraph (a):

“(aa) Notwithstanding paragraph (a), where the individual, or, being a husband or wife, the individual's spouse, is assessed to tax in accordance with section 1017, the individual shall, except where section 1023 applies, be entitled to have the deduction, to which he or she is entitled under paragraph (a), made from his or her total income and the total income of his or her spouse, if any.”,

and

(h) by the substitution of the following section for section 372K:

“Non-application of relief in certain cases and provision against double relief.	372K.—(1) Notwithstanding any other provision of this Chapter, sections 372C and 372D shall not apply—
(a) in respect of expenditure incurred on the construction or refurbishment of a building or structure or a qualifying premises—
	(i) where a property developer is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure, and
	(ii) either the person referred to in subparagraph (i) or a person connected (within the meaning of section 10) with that person incurred the expenditure on the construction or refurbishment of the building, structure or premises concerned,
	(b)in respect of expenditure incurred on the construction or refurbishment of a building or structure or a qualifying premises where such building or structure or premises is in use for the purposes of a trade, or any activity treated as a trade, carried on by the person who is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure and such trade or activity is carried on wholly or mainly—
	(i)in the sector of agriculture, including the production, processing and marketing of agricultural products,
	(ii) in the coal industry, fishing industry or motor vehicle industry, or
	(iii) in the transport, steel, ship-building, synthetic fibres or financial services sectors,
	or
	(c)in relation to any building or structure or qualifying premises which is provided for the purposes of a project, the regional aid for which is limited under the ‘Multisectoral framework on regional aid for large investment projects'[^1] prepared by the Commission of the European Communities.
	(2) For the purposes of sections 372C, 372D, 372G and 372H, where the site of any part of a building or structure is situate outside the boundary of a qualifying area and where expenditure incurred or treated as having been incurred in the qualifying period is attributable to the building or structure in general, such an amount of that expenditure shall be deemed to be attributable to the part which is situate outside the boundary of the qualifying area as bears to the whole of that expenditure the same proportion as the floor area of the part situate outside the boundary of the qualifying area bears to the total floor area of the building or structure.
	(3) Where relief is given by virtue of any provision of this Chapter in relation to capital expenditure or other expenditure incurred on, or rent payable in respect of, any building, structure or premises, relief shall not be given in respect of that expenditure or that rent under any other provision of the Tax Acts.”.

(2) This section shall apply as on and from 1 July 1999.

45 Amendment of Chapter 8 (qualifying rural areas) of Part 10 of Principal Act.

45.—(1) Chapter 8 of Part 10 of the Principal Act is amended—

(a) in section 372L—

(i) by the insertion before the definition of “qualifying period” of the following:

“ ‘property developer’ means a person carrying on a trade which consists wholly or mainly of the construction or refurbishment of building or structures with a view to their sale;”, and

(ii) in the definition of “qualifying period”, by the substitution of “31 December 2002” for “the 31st day of December, 2001” in each place where it occurs,

(b) in section 372M, in subsection (2)(d), by the substitution of “50 per cent” for “25 per cent”,

(i) in subsection (2)(a), by the substitution of “subsections (3) to (5)” for “subsections (3) to (6B)”,

(ii) in subsection (4)(b)—

(I) in subparagraph (i) by the deletion of “and”, and

(II) by the substitution of the following subparagraphs for subparagraph (ii):

“(ii) the following paragraph were substituted for paragraph (b) of subsection (2) of that section:

and

(iii) subsections (3) to (7) of that section were deleted.”,

and

(iii) by the deletion of subsections (6), (6A) and (6B),

(d) in section 372RA(2), by the insertion of the following paragraph after paragraph (a):

“(aa) Notwithstanding paragraph (a), where the individual, or, being a husband or wife, the individual's spouse,. is assessed to tax in accordance with section 1017, the individual shall, except where section 1023 applies, be entitled to have the deduction, to which he or she is entitled under paragraph (a), made from his or her total income and the total income of his or her spouse, if any.”,

and

(e) by the substitution of the following section for section 372T:

“Non-application of relief in certain cases and provision against double relief.	372T.—(1) Notwithstanding any other provision of this Chapter sections 372M and 372N shall not apply—
	(a)in respect of expenditure incurred on the construction or refurbishment of a building or structure or a qualifying premises—
	(i) where a property developer is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure, and
	(ii) either the person referred to in subparagraph (i) or a person connected (within the meaning of section 10) with that person incurred the expenditure on the construction or refurbishment of the building, structure or premises concerned,
	(b)in respect of expenditure incurred on the construction or refurbishment of a building or structure or qualifying premises where such building or structure or premises is in use for the purposes of a trade, or any activity treated as a trade, carried on by the person who is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure and such trade or activity is carried on wholly or mainly—
	(i) in the sector of agriculture, including the production, processing and marketing of agricultural products,
	(ii) in the coal industry, fishing industry or motor vehicle industry, or
	(iii) in the transport, steel, ship-building, synthetic fibres or financial services sectors,
	or
	(c)in relation to any building or structure or qualifying premises which is in use for the purposes of a trade, or any activity treated as a trade, where the number of individuals employed or engaged in the carrying on of the trade or activity amounts to or exceeds 2.50.
	(2) Where relief is given by virtue of any provision of this Chapter in relation to capital expenditure or other expenditure incurred on, or rent payable in respect of, any building, structure or premises, relief shall not be given in respect of that expenditure or that rent under any other provision of the Tax Acts.”.

(2) This section shall apply as on and from 1 July 1999.

46.—Chapter 9 of Part 10 of the Principal Act is amended—

(a) in section 372Y(2), by the insertion of the following after paragraph (a):

and

(b) in section 372Z(10), by the substitution of “section 372X(6)” for “section 372X(5)”.

47 Amendment of section 823 (deduction for income earned outside the State) of Principal Act.

47.—(1) Section 823 of the Principal Act is amended—

(a) in subsection (1), by the substitution of “11 consecutive days” for “14 consecutive days” in paragraph (a) of the definition of “qualifying day”,

(b) in subsection (2A), by the substitution of “11 consecutive days” for “14 consecutive days” in paragraph (b), and

(c) in subsection (3), by the substitution of “whichever is the lesser; but that amount, or the aggregate of those amounts where there is more than one such office or employment, shall not exceed £25,000.” for “whichever is the lesser.”.

(2) (a) Paragraphs (a) and (b) of subsection (1) shall apply as on and from 29 February 2000, and

(b) paragraph (c) of subsection (1) shall apply—

(i) as respects the year of assessment 2000-2001 and subsequent years of assessment, and

(ii) as respect the year of assessment 1999-2000, as if the reference to “that amount, or the aggregate of those amounts where there is more than one such office or employment” were a reference to “such portion of that amount, or such portion of the aggregate of those amounts where there is more than one such office or employment, which arises by virtue of income, profits or gains accuring or paid on or after 29 February 2000”.

48 Amendment of section 481 (relief for investment in films) of Principal Act.

48.—(1) The Principal Act is amended in section 481—

(a) in subsection (1)—

(i) by the substitution for the definition of “qualifying company” of the following definition:

“ ‘qualifying company’ means a company which—

(a) (i) is incorporated and resident in the State, or

(ii) is carrying on a trade in the State through a branch or agency,

(b) exists solely for the purposes of the production and distribution of only one qualifying film, and

(i) registered under either or both the Companies Acts, 1963 to 1999, and the Registration of Business Names Act, 1963, or

(ii) registered under the law of the territory in which it is incorporated,

the words ‘Ireland’, ‘Irish’, ‘Éireann’, ‘Éire’ or ‘National’;”,

(ii) by the substitution for the definition of “qualifying period” of the following definition:

“ ‘qualifying period’, in relation to an allowable investor company and a qualifying individual, means the period commencing on 23 January 1996, and ending on 5 April 2005;”,

and

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

“(c) The specified percentage shall not exceed—

(i) where the total cost of production of the film does not exceed £4,000,000, 66 per cent,

(ii) where the total cost of production of the film exceeds £4,000,000 and does not exceed £5,000,000, the amount per cent (in this subparagraph referred to as the ‘allowable percentage’) where the amount of the allowable percentage is determined by the formula—

66	-	(11 x E)
£1,000,000

where E is the excess of the total cost of production of the film over £4,000,000, and

(iii) where the total cost of production of the film exceeds £5,000,000, 55 per cent;

but, in any case to which subparagraph (i), (ii) or (iii) relates, the total cost of production of the film which is met by relevant investments shall not exceed £8,250,000.”.

(2) This section shall have effect from such day as the Minister for Finance may appoint by order.

49 Amendment of section 482 (relief for expenditure on significant buildings and gardens) of Principal Act.

49.—With effect from the passing of this Act, section 482 of the Principal Act is amended—

(a) in subsection (1)(a), by the substitution of “1957;” for “1957.” in the definition of “tourist accommodation facility” and the insertion of the following after that definition:

“ ‘weekend day’ means a Saturday or a Sunday.”,

(b) in subsection (5)(b), by the substitution of the following for subparagraph (ii):

“(ii)subject to temporary closure necessary for the purposes of the repair, maintenance or restoration of the building, access is so afforded for a period of not less than 60 days in any year, and—

(I) such period shall include, as respects determinations made by the Revenue Commissioners in accordance with paragraph (a)(ii)—

(A) before the passing of the Finance Act, 2000, not less than 40 days, and

(B) on or after the passing of the Finance Act, 2000, not less than 40 days, of which not less than 10 are weekend days,

during the period commencing on 1 May and ending on 30 September, and

(II) in respect of each such period, on each day concerned access is afforded in a reasonable manner and at reasonable times for a period, or periods in the aggregate, of not less than 4 hours, and”,

and

“(8) Notwithstanding that the Revenue Commissioners have before the passing of the Finance Act, 2000, made a determination in accordance with subsection (5)(a)(ii) that a building is a building to which reasonable access is afforded to the public, relief under subsection (2), in relation to qualifying expenditure incurred in a chargeable period beginning on or after 1 January 1995, in respect of the building shall not be given unless the person who owns or occupies the building satisfies the Revenue Commissioners on or before 1 January in the chargeable period that it is a building to which reasonable access is afforded to the public having regard to—

(a)in a case where the qualifying expenditure is incurred in a chargeable period beginning before 1 October 2000, subsection (5)(b)(ii) (I)(A), and

(b)in a case where the qualifying expenditure is incurred in a chargeable period beginning on or after 1 October 2000, subsection (5)(b)(ii) (I)(B).”.

50 Amendment of section 485 (relief for gifts to third-level institutions) of Principal Act.

50.—As on and from 6 April 2000, section 485 of the Principal Act is amended—

(a) in subsection (1)—

(i) by the insertion before the definition of “approved institution” of the following definition:

“ ‘approved development fund’ means a fund in respect of which the Minister has given a certificate under subsection (2) which certificate has not been revoked under that subsection;”,

(ii) by the insertion after the definition of “approved project” of the following definition:

“ ‘development fund’ means a fund established by an approved institution, in accordance with the relevant guidlines, for the purpose of enabling it to carry out one or more projects;”,

(iii) in the definition of “project”—

(I) in paragraph (c), by the substitution of “relevant guidelines,” for “guidelines referred to in subsection (2)(a)(i), and”,

(II) in paragraph (d), by the substitution of “skills needs, and” for “skills needs;”, and

(III) by the insertion after paragraph (d) of the following paragraph:

“(e) any other project approved of for the purpose of this section by the Minister with the consent of the Minister for Finance;”,

(iv) by the substitution of the following for the definition of “relevant gift”:

“ ‘relevant gift’ means a gift of money—

(a) to an approved institution for the sole purpose of funding an approved project or an approved development fund, as the case may be,

(b) that is or will be applied by the approved institution for the purpose of funding the approved project or the approved development fund, as the case may be, and

(c) that, apart from this section, is not deductible in computing for the purposes of tax the profits or gains of a trade or profession, or is not income to which section 792 applies or is not a gift of money to which section 484 applies; and”,

and

(v) by the insertion after the definition of “relevant gift” of the following definition:

“ ‘relevant guidelines’ has the meaning assigned to it by subsection (14).”,

(b) in subsection (2)—

(i) by the substitution of the following for subparagraph (a)(i):

“(i) The Minister, on the making of an application by an approved institution, may, in accordance with the relevant guidelines, give a certificate to that institution stating that a project or a development fund, as the case may be, may be treated as an approved project or an approved development fund, as the case may be, for the purposes of this section.”,

(ii) in subparagraph (a)(ii), by the substitution of “relevant guidelines” for “guidelines referred to in subparagraph (i)”,

(iii) by the deletion of subparagraph (a)(iii), and

(iv) by the substitution of the following for paragraph (c):

“(c)Where an approved institution fails to comply with any of the conditions to which a certificate given to it under paragraph (a) is subject by virtue of paragraph (b), the Minister may, by notice in writing given to the institution, revoke the certificate, and the project or the development fund, as the case may be, shall cease to be an approved project or an approved development fund, as the case may be, as respects any gifts made to the institution after the date of the Minister's notice.”,

“(6) (a) For the purposes of income tax for the year of assessment in which a person makes a relevant gift, the net amount of the gift shall be deducted from or set off against any income of the person chargeable to income tax for that year and tax shall where necessary be discharged or repaid accordingly, and the total income of the person or, where the person's spouse is assessed to income tax in accordance with section 1017, the total income of the spouse shall be calculated accordingly.

(b) Where, in any year of assessment owing to an insufficiency of total income, relief cannot be given by virtue of paragraph (a) for all or a part of the relevant gift (in this subsection referred to as the ‘unrelieved amount’), the unrelieved amount shall be carried forward to the next year of assessment and shall be treated for the purposes of the relief as a relevant gift made in that next year.

(c) Where, owing to an insufficiency of total income, relief cannot be given by virtue of paragraph (b) for any part of the unrelieved amount, that part of the unrelieved amount shall be carried forward to the next year of assessment following the year referred to in paragraph (b) and treated as a relevant gift made in that next year.

(d) Where, owing to an insufficiency of total income, relief cannot be given by virtue of paragraphs (b) and (c) in respect of any part of an unrelieved amount, that part of the unrelieved amount shall be carried forward to the next year of assessment following the year referred to in paragraph (c) and treated as a relevant gift made in that next year.

(e) Relief under this section shall be given to an individual for any year of assessment in the following order:

(i) in the first instance, in respect of an amount carried forward from an earlier year of assessment in accordance with paragraph (b), (c) or (d) and, in respect of such an amount so carried forward, for an earlier year of assessment in priority to a later year of assessment; and

(ii) only thereafter, in respect of any other amount for which relief is to be given in that year of assessment.

(7) (a) Where a relevant gift is made by a company, the net amount of the gift shall, for the purposes of corporation tax, be deemed to be a loss incurred by the company in a separate trade in the accounting period of the company in which the gift is made.

(b) Where all or part of the relevant gift which is deemed to be a loss of a separate trade in the accounting period in which the gift is made has not been set off against profits of the company for that accounting period by virtue of section 396(2), or surrendered to another company by virtue of section 420(1), so much of the relevant gift as has not been so set off or surrendered, as the case may be, shall be carried forward and treated as a loss incurred by the company in a separate trade in the next succeeding accounting period and so on until all of the relevant gift has been set off or surrendered, as the case may be, but no such loss shall be so carried forward to an accounting period which ends more than 3 years after the end of the accounting period in which the relevant gift giving rise to the loss was made.”,

(d) in subsection (8), by the substitution of “£250” for “£1,000”,

(e) in subsection (9), by the insertion after “each approved project” of “or approved development fund, as the case may be”,

(f) in subsection (10), by the substitution of the following for paragraph (b):

“(b) a project is an approved project,

(bb) a development fund is an approved development fund, or”,

(g) in subsection (11)—

(i) by the substitution of the following for subparagraph (a)(iv):

“(iv) the project or the development fund, as the case may be, in respect of which the relevant gift has been made is an approved project or an approved development fund, as the case may be,”,

and

(ii) by the substitution of the following for subparagraph (b)(vi):

“(v) particulars of the approved project or the approved development fund, as the case may be, in respect of which the relevant gift has been made,”,

and

(h) by the insertion after subsection (11) of the following subsections:

“(12) The Minister may delegate his functions under this section to the Higher Education Authority.

(13) The Higher Education Authority, when required to do so by notice in writing from the Minister or the Minister for Finance, as the case may be, shall, within the time limited by the notice, prepare and deliver to that Minister a report for such period and containing such particulars as that Minister may specify.

(14) In this section ‘relevant guidelines’ means guidelines issued for the purposes of this section by the Minister with the consent of the Minister for Finance and, without prejudice to the generality of the foregoing, such guidelines may include provisions in relation to all or any one or more of the following:

(i) the certification of projects or development funds, as the case may be, to be treated as approved projects or approved development funds, as the case may be;

(ii) the payment for the benefit of the Exchequer by an approved institution of the value of the tax relief granted in respect of a relevant gift made to it to the extent that that gift has not been used by it for the purposes of an approved project or an approved development fund, as the case may be;

(iii) the provision of particulars in relation to the amount of relevant gifts received by an approved institution and the application of those gifts; and

(iv) the provision of such other information as the Minister may reasonably require for the purposes of this section.”.

51.—The Principal Act is amended—

(a) in Chapter 3 (inserted by the Finance Act, 1999) of Part 17—

(i) in section 519A by the insertion after subsection (3) of the following:

“(3A) (a) Where, in exercising a right in accordance with the provisions of the scheme at a time when it is approved, the individual acquires scheme shares from a relevant body, neither a chargeable gain nor an allowable loss shall accrue to the relevant body on the disposal of the scheme shares, and the individual shall, notwithstanding section 547(1)(a), be deemed for the purposes of the Capital Gains Tax Acts to have acquired the scheme shares for a consideration equal to the amount paid for their acquisition.

(b) In this subsection and in section 519B—

‘relevant body’ means a trust or a company which exists for the purpose of acquiring and holding scheme shares;

‘schemes shares’ has the meaning assigned to it by paragraph 10 of Schedule 12A.”.

and

(ii) in section 519B—

(I) in subsection (1), by the substitution for “This section shall apply” of “Subject to subsection (2A) this section shall apply”, and

(II) by the insertion after subsection (2) of the following:

“(2A) Notwithstanding any provision of the Tax Acts, any sum expended by the company, either directly or indirectly, to enable a relevant body to acquire scheme shares shall not be included—

(a) in the sums to be deducted in computing for the purposes of Schedule D the profits or gains of a trade carried on by the company, or

(b) if the company is an investment company within the meaning of section 83 or a company in the case of which that section applies by virtue of section 707, in the sums to be deducted under section 83(2) as expenses of management in computing the profits of the company for the purposes of corporation tax.”,

and

(b) in Schedule 12A—

(i) in paragraph 1(1)—

This document does not substitute the official text published in the Irish Statute Book. We accept no responsibility for any inaccuracies arising from the transcription of the original into this format.

This text is published under Irish Statute Book's own terms of reuse, not a Legalize or public-domain licence. Irish Statute Book
CC-BY 4.0 (Oireachtas Open Data PSI Licence)
Contains Irish Public Sector Information licensed under the Oireachtas (Houses of the Oireachtas) Open Data PSI Licence / Creative Commons Attribution 4.0 International, sourced from https://www.irishstatutebook.ie.

Finance Act 2000

31 Amendment of section 153 (distributions to certain non-residents) of Principal Act.

32 Amendment of section 700 (special computational provisions) of Principal Act.

33 Amendment of section 831 (implementation of Council Directive No. 90/435/EEC concerning the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States) of Principal Act.

Chapter 4 Income Tax, Corporation Tax and Capital Gains Tax

34 Amendment of section 198 (certain interest not to be chargeable) of Principal Act.

35 Capital allowances for, and deduction in respect of, vehicles.

36 Amendment of section 268 (meaning of “industrial building or structure”) of Principal Act.

37 Amendment of section 333 (double rent allowance in respect of rent paid for certain business premises) of Principal Act.

38 Amendment of section 20 (amendment ofprovisions relating to Custom House Docks Area) of Urban Renewal Act, 1998.

39 Amendment of section 324 (double rent allowance in respect of rent paid for certain business premises) of Principal Act.

40 Amendment of Part 9 (principal provisions relating to relief for capital expenditure) of Principal Act.

41 Capital allowances for computer software.

42 Amendment of Chapter 3 (designated areas, designated streets, enterprise areas and multi-storey car parks in certain urban areas) of Part 10 of Principal Act.

43 Amendment of section 360 (interpretation (Chapter 5)) of Part 10 of Principal Act.

44 Amendment of Chapter 7 (qualifying areas) of Part 10 of Principal Act.

45 Amendment of Chapter 8 (qualifying rural areas) of Part 10 of Principal Act.

46 Amendment of Chapter 9 (park and ride facilities and certain related developments) of Part 10 of Principal Act.

47 Amendment of section 823 (deduction for income earned outside the State) of Principal Act.

48 Amendment of section 481 (relief for investment in films) of Principal Act.

49 Amendment of section 482 (relief for expenditure on significant buildings and gardens) of Principal Act.

50 Amendment of section 485 (relief for gifts to third-level institutions) of Principal Act.

51 Savings-related share option schemes.