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The Taxation of Companies 2020
Authors: Tom Maguire and Michael Feeney
ISBN: 9781526509772
Buy Book in PrintEdition: 24th
Publication Date: February 2020
Publisher: Bloomsbury Professional
Copyright: 2020 Bloomsbury Professional Ltd
Law As Stated At: 1 January 2020
The Taxation of Companies 2020
Previously
Feeney: The Taxation of Companies
by
Michael Feeney
This key book provides the most comprehensive analysis and commentary available on the taxation of companies in Ireland.
This year, for the first time, it will be written by Tom Maguire – a worthy successor to Michael Feeney.
This new edition is updated to the Finance Act 2019. An extremely practical book, it features detailed worked examples and extensive references to case law throughout the work. The guidance and advice outlines how to successfully apply the new tax reliefs, keeping your clients' tax liabilities as low as possible.
About the author
Tom Maguire is a tax partner in Deloitte and leads its tax policy and technical services team. He is one of the country's pre-eminent tax commentators and has authored and co-authored a number of leading texts on various tax matters, including Irish Income Tax (formerly “Judge”) which is also published by Bloomsbury.
Contents
- Foreword
- Preface
- Close sectionChapter 1: Introduction and Outline
- Close sectionChapter 2: Interpretation
- Close sectionChapter 3: Charge to Corporation Tax
- Close section3.1 Introduction
- Close section3.101 Charge and rates of corporation tax
- Close section3.102 Profits, income and chargeable gains
- Close section3.103 Trading
- 3.104 Capital allowances and related charges
- Close section3.105 Accounting periods
- Close section3.106 Residence of companies
- 3.106.1 Significance of a company tax residence
- Close section3.106.2 Meaning of tax residence for companies
- Central management and control: case law
- Place of incorporation: statutory position
- A. Companies incorporated before 1 January 2015: position up to 31 December 2020 (subject to B)
- B. Certain companies incorporated before 1 January 2015
- C. Companies incorporated on or after 1 January 2015
- Place of effective management
- Multilateral instrument
- Mergers Directive
- Close section3.107 Non-resident companies
- Close section3.107.1 Chargeable profits and geographical scope
- Close section3.107.2 Trading
- Branch or agency: case law background
- Independent agents acting for non-resident financial trading companies
- Permanent establishment: fixed place of business
- Partnerships
- Permanent establishment: agents
- Core v auxiliary activities
- Business connection test
- What profits are taxable?
- Electronic commerce
- Close section3.107.3 Revenue criteria and guidelines on PE (permanent establishment)
- 3.107.4 Government and other public loans: computation of losses
- Close section3.107.5 Exemption in respect of certain interest
- Close section3.107.6 Other matters
- Close section3.2 Computation of Corporation Tax
- Close section3.201 Computation of income: basic principles
- Close section3.202 Computation of income: other legislative provisions
- 3.202.1 Pre-trading expenditure
- 3.202.2 Business entertainment
- Close section3.202.3 Motor vehicles
- 3.202.4 Interest
- 3.202.5 Pension contributions
- 3.202.6 Redundancy payments
- 3.202.7 Charges on income
- 3.202.8 Payments for know-how
- 3.202.9 Patents and trade marks
- 3.202.10 Scientific research
- 3.202.11 Value of trading stock at discontinuance of trade
- 3.202.12 Premiums for leases
- 3.202.13 Restrictive covenants
- 3.202.14 Removal expenses
- 3.202.15 Relief for the long-term unemployed
- Close section3.202.16 Appropriations to and from stock-in-trade
- 3.202.17 Restriction of employee benefit contributions
- Close section3.203 Deductions and allowances
- 3.203.1 General
- 3.203.2 Profit sharing schemes
- 3.203.3 Employee share ownership trusts
- Close section3.203.4 Savings-related share option schemes: approved share option schemes
- Close section3.203.5 Donations of heritage items
- Close section3.203.6 Relief for expenditure on significant buildings and gardens
- Close section3.203.7 Investment in renewable energy generation
- Close section3.203.8 Donations to approved bodies etc
- Close section3.203.9 Donations to certain sports bodies
- 3.203.10 Expenses relating to superannuation schemes
- Close section3.203.11 Emissions allowances
- Close section3.204 Grants and other receipts
- 3.204.1 Grants
- 3.204.2 National Co-operative Farm Relief Services Ltd
- 3.204.3 Patent income
- 3.204.4 Nomination income
- 3.204.5 Woodlands
- Close section3.204.6 Exemption for certain securities
- Close section3.204.7 Taxation of reverse premiums
- 3.204.8 Release of debts previously set off
- 3.204.9 Other receipts: income v capital
- Close section3.205 Distributions received
- 3.206 Income tax on payments made or received
- Close section3.207 Case III
- Close section3.208 Case IV
- 3.208.1 Income charged
- 3.208.2 Other gains chargeable under Case IV
- 3.208.3 Deposit interest retention tax
- 3.208.4 Leasing of machinery or plant
- 3.208.5 Anti-avoidance
- Close section3.208.6 Premiums for leases and related payments
- Close section3.208.7 Bond washing
- 3.208.8 Transactions associated with loans
- 3.208.9 Gains from illegal or unknown sources
- 3.208.10 Recovery of excess reliefs
- Close section3.208.11 Basis of assessment and Case IV losses
- Close section3.209 Case V
- Close section3.210 Offshore income gains
- 3.210.1 Introduction
- 3.210.2 Material interest in offshore fund
- Close section3.210.3 Disposal of material interest in non-qualifying offshore funds
- 3.210.4 Disposal involving an equalisation element
- Close section3.210.5 Qualifying offshore funds
- 3.210.6 Switching
- 3.210.7 Deduction of offshore income gains in determining capital gains
- 3.210.8 Capital gains tax rate
- 3.210.9 Returns of material interest in offshore funds
- Close section3.210.10 Certain offshore funds: taxation and returns
- 3.210.11 Amalgamations with investment undertakings
- 3.210.12 Returns on acquisition of foreign policy
- Close section3.211 Exchange of shares held as “trading stock”
- Close section3.212 Stock lending/Sale and Repo transactions
- Close section3.213 Exemptions from tax
- 3.213.1 Bodies exempt from corporation tax
- 3.213.2 Certain income of Housing Finance Agency plc
- 3.213.3 Income of body designated under Irish Takeover Panel Act 1997
- 3.213.4 Income of credit unions
- 3.213.5 Income of Investor Compensation Company Ltd
- 3.213.6 National Co-operative Farm Relief Services Ltd
- 3.213.7 Small enterprise grants
- 3.213.8 Grants to medium and large industrial undertakings
- 3.213.9 Employment grants
- 3.213.10 Certain employment grants and recruitment subsidies
- 3.213.11 Certain income of specified non-commercial state-sponsored bodies
- 3.213.12 Income of designated bodies under the Securitisation (Proceeds of Certain Mortgages) Act 1995
- 3.213.13 Harbour authorities and port companies
- 3.213.14 National Treasury Management Agency
- 3.213.15 National Pensions Reserve Fund Commission
- 3.213.16 National Development Finance Agency
- 3.213.17 National Asset Management Agency
- 3.213.18 Income of athletic or other sporting bodies
- Close section3.213.19 Start-up companies: reliefs
- Close section3.213.20 Certain income of Motor Insurers’ Bureau of Ireland
- 3.214 Deduction for interest: anti-avoidance
- Close section3.215 Specified financial transactions: Islamic finance
- Close section3.3 Accounting Principles
- 3.301 Introduction
- Close section3.302 Valuation of stocks and work in progress
- Close section3.303 Leasing of plant and machinery
- Close section3.304 International Financial Reporting Standards (IFRS)
- Close section3.304.1 Introduction and outline
- Close section3.304.2 Computation of profits or gains: accounting standards
- Generally accepted accounting practice
- International accounting standards (IAS)
- Irish generally accepted accounting practice (Irish GAAP)
- Case III and Case IV
- Retrospective effect of a change in accounting policy
- Retrospective effect of adopting an accounting standard
- Close sectionRetrospective effect of correcting an error
- 3.304.3 Unrealised gains and losses in certain cases
- Close section3.304.4 Different accounting policies within a group
- Close section3.304.5 Rules for deductibility of expenses for tax purposes
- Close section3.304.6 Transitional measures
- 3.304.7 Hedge accounting
- 3.304.8 Foreign currency issues
- 3.304.9 Double taxation relief
- Close section3.4 Foreign Currency Issues
- 3.401 Introduction
- 3.402 Accounting treatment
- Close section3.403 Trading transactions
- 3.404 Foreign branches
- 3.405 Foreign currency borrowing: case law background
- Close section3.406 Foreign currency borrowing: statutory position
- Close section3.407 Capital allowances and losses
- Close section3.408 Capital gains tax
- Close section3.1 Introduction
- Close sectionChapter 4: Losses, Collection of Tax at Source and Charges on Income
- Close section4.1 Losses
- Close section4.101 Trading losses
- 4.102 Ring-fencing of losses
- Close section4.103 Treatment of “relevant trading losses”
- 4.104 Terminal losses
- 4.105 Case III losses
- 4.106 Case IV losses
- 4.107 Case V and other deficiencies
- 4.108 Late submission of returns: restriction of relief
- Close section4.109 Company reconstructions without change of ownership
- Close section4.109.1 Introduction
- 4.109.2 Transfer of trade
- Close section4.109.3 Trading losses
- (1) Transfer of whole trade: successor carries on that trade as its whole trade
- (2) Transfer of whole trade: successor merges that trade with its own trade
- (3) Transfer of part of trade: successor carries on that trade as its whole trade
- (4) Transfer of part of trade: successor merges that part with its own trade
- 4.109.4 Capital allowances
- 4.109.5 Securities held as trading stock
- 4.109.6 Terminal loss available to predecessor
- 4.109.7 Further transfers of trade within period for comparison
- Close section4.109.8 Ownership of trade
- 4.109.9 Loss buying
- 4.109.10 The Mergers Directive
- Close section4.110 Change of ownership – disallowance of trading losses
- 4.2 Set off of Losses against Franked Investment Income
- Close section4.3 Collection of Tax at Source
- Close section4.301 Deduction of tax at source: introduction
- Close section4.302 TCA 1997, s 237
- Close section4.303 TCA 1997, s 238
- Close section4.304 Payments to non-residents
- Close section4.305 Yearly interest
- 4.306 TCA 1997, s 239: relevant payments
- Close section4.307 Interest and Royalties Directive
- Close section4.308 Interest and royalties: Switzerland
- Close section4.4 Charges on Income
- 4.401 Charges on income: introduction
- 4.402 Meaning of “charges on income”
- Close section4.403 Interest as a charge on income
- Close section4.403.1 Introduction
- 4.403.2 Qualifying loans
- 4.403.3 Conditions for relief
- Close section4.403.4 Recovery of capital
- Close section4.403.5 Anti-avoidance
- TCA 1997, s 817A
- Related-party borrowing Outline
- Denial of relief
- Transactions not affected: use of funds for trade or business
- Relevant income exclusion
- Related party and other borrowing: further restrictions Investing company on-lending to company to acquire assets from connected company
- Money on-lent to acquire assets for trade of leasing
- Computation of restriction: corresponding accounting period
- Connected persons: back to back arrangements
- Investing company on-lending to other company not within the charge to corporation tax
- Investing company on-lending to other company and money used by connected company not within charge to corporation tax
- Group relief: treatment of interest surrendered
- 4.403.6 Funding acquisition of specified intangible assets: restricting interest relief
- Close section4.404 Deduction for charges on income
- Close section4.405 Treatment of “relevant trading charges”
- Close section4.1 Losses
- Close sectionChapter 5: Capital Allowances
- Close section5.1 Principles
- 5.101 Introduction
- Close section5.102 Capital expenditure
- Close section5.103 Control and main benefit sales
- Close section5.104 Sale, insurance, salvage or compensation moneys
- Close section5.105 Manner of making allowances and charges
- Close section5.106 Accelerated capital allowances
- 5.107 Effect of succession to trade etc
- 5.108 Renewals basis
- Close section5.2 Machinery or Plant
- 5.201 Capital allowances available
- Close section5.202 Meaning of “machinery or plant”
- Close section5.203 Wear and tear allowances
- 5.203.1 General
- 5.203.2 Conditions for wear and tear allowance
- Close section5.203.3 Amount of wear and tear allowance
- (a) Plant provided from 1 April 1992 to 31 December 2000
- (b) Expenditure incurred on machinery and plant from 1 January 2001 to 3 December 2002
- (c) Expenditure incurred on machinery and plant from 4 December 2002
- (d) Taxis and cars for short-term hire
- (e) Plant (other than excepted vehicles) provided before 1 April 1992
- Close section5.204 Free depreciation
- Close section5.205 Initial allowances
- Close section5.206 Notional wear and tear allowances
- Close section5.207 Balancing allowances and balancing charges
- Close section5.208 Capital grants
- 5.209 Roll over of balancing charges
- 5.210 Successive balancing adjustments
- 5.211 Plant used partly for non-trading purposes
- Close section5.212 Restriction of capital allowances on private motor vehicles
- Close section5.213 Emissions-based restriction of capital allowances for cars
- Close section5.214 Accelerated allowances for certain sea fishing boats
- Close section5.215 Accelerated allowances for certain sea fishing boats
- 5.216 Accelerated wear and tear allowances for childcare and fitness centre equipment
- Close section5.217 Accelerated wear and tear allowances for gas vehicles and refuelling equipment
- 5.218 Qualifying shipping trades: ring fencing
- Close section5.219 Intangible assets
- Close section5.3 Leased Machinery or Plant
- Close section5.301 Capital allowances for lessors
- 5.302 Relief for lessors’ unused capital allowances
- 5.303 Capital allowances for lessees
- 5.304 Burden of wear and tear
- Close section5.305 Lessors’ capital allowances restricted
- 5.305.1 General
- Close section5.305.2 Trade of leasing
- 5.305.3 The specified capital allowances
- 5.305.4 The excepted capital allowances
- 5.305.5 The specified trades
- 5.305.6 Trading lessors
- 5.305.7 FA 2005 changes: summary
- 5.305.8 Non-trading lessors
- 5.305.9 Relaxation of ring fence for certain companies
- Close section5.306 “Balloon” leasing
- Close section5.4 Industrial Buildings and Structures
- Close section5.401 Qualifying buildings
- Close section5.401.1 Industrial building or structure
- 5.401.2 Mill, factory or other similar premises
- 5.401.3 Laboratories for mineral analysis
- 5.401.4 Airport buildings and structures
- Close section5.401.5 Private nursing homes and qualifying residential units
- 5.401.6 Private convalescent homes
- 5.401.7 Qualifying hospitals
- 5.401.8 Sports injuries clinics
- 5.401.9 Qualifying mental health centres
- 5.401.10 Qualifying specialist palliative care units
- 5.401.11 Incentives for certain aviation services facilities
- 5.401.12 Buildings situated abroad
- 5.401.13 Non-qualifying buildings
- 5.401.14 Anti-avoidance: room ownership schemes
- 5.402 General scheme of industrial building allowances
- 5.403 Meaning of “relevant interest”
- Close section5.404 Qualifying expenditure
- 5.405 Initial allowances
- Close section5.406 Writing down allowances
- Close section5.407 Increased writing down allowances
- Close section5.408 Buildings purchased unused
- Close section5.409 Balancing allowances and charges
- Close section5.410 Capital allowances after sale of building
- Close section5.411 Deduction of notional allowances
- 5.412 Sale of building constructed at different dates
- 5.413 Anti-avoidance: balancing allowances
- 5.414 Rates and writing down periods
- 5.415 Special provisions for leases
- Close section5.416 How industrial buildings allowances are made
- 5.416.1 Introduction
- 5.416.2 Premises used for trade of person entitled to allowances
- 5.416.3 Allowances for lessors chargeable under Schedule D Case V
- 5.416.4 Allowances for lessors chargeable under Schedule D Case IV
- 5.416.5 Registered holiday cottages: limitation on set-off against other income
- 5.416.6 Limited partnerships
- 5.416.7 Property investment schemes
- Close section5.401 Qualifying buildings
- Close section5.5 Leased Industrial Buildings
- Close section5.6 Miscellaneous Capital Allowances
- 5.601 Scientific research allowances
- 5.602 Pre-commencement training
- 5.603 Dredging expenditure allowances
- 5.604 Trade effluents expenditure
- 5.605 Multi-storey car-parks
- Close section5.606 Buildings used for third level education
- Close section5.607 Buildings used for certain childcare purposes
- Close section5.608 Buildings used for providing childcare services or a fitness centre to employees
- Close section5.609 Mid-Shannon Corridor Tourism Infrastructure Investment Scheme
- 5.609.1 Introduction
- 5.609.2 Definitions
- Close section5.609.3 Approval, certification and guidelines
- Close section5.609.4 Qualifying mid-Shannon areas
- Close section5.609.5 Registered holiday camps: accelerated capital allowances
- Close section5.609.6 Tourism infrastructure facilities: capital allowances
- Close section5.610 Living City Initiative
- Close section5.611 Transmission capacity rights
- 5.611.1 Introduction
- 5.611.2 Definitions and related matters
- 5.611.3 Writing-down allowances
- Close section5.611.4 Effect of lapse of capacity rights
- Discontinuance of writing-down allowances
- Lapse of rights or outright sale where proceeds less than unallowed expenditure
- Sale of all or part of rights for proceeds in excess of unallowed expenditure
- Sale of part of rights for proceeds not in excess of unallowed expenditure
- The amount of the qualifying expenditure remaining unallowed
- 5.611.5 Manner of making allowances and charges
- Close section5.1 Principles
- Close sectionChapter 6: International Tax Issues
- Close section6.1 Transfer Pricing
- 6.101 Introduction
- 6.102 Interpretation
- Close section6.103 Transfer Pricing Rules
- 6.104 OECD Guidelines
- Close section6.105 Modification of basic rules on transfer pricing for arrangements between qualifying relevant persons
- Close section6.106 Small or medium enterprises
- Close section6.107 Documentation and enquiries
- 6.108 Elimination of double counting
- Close section6.109 Interaction with capital allowances provisions
- Close section6.110 Interaction with provisions dealing with chargeable gains
- 6.111 “Un-grandfathering” of transctions for transfer pricing purposes
- Close section6.2 Controlled Foreign Companies
- Close section6.201 Introduction
- 6.202 Definitions and interpretation
- 6.203 Meaning of control
- 6.204 Accounting periods
- 6.205 Determination of residence
- 6.206 Adjustment to amount of foreign tax
- 6.207 Corresponding chargeable profits in the State
- 6.208 Corresponding corporation tax in the State
- Close section6.209 Controlled foreign company charge
- Close section6.210 Exemptions
- Close section6.3 Hybrids
- 6.301 Introduction
- 6.302 Interpretation
- 6.303 Additional interpretations
- Close section6.304 Associated entities
- 6.305 Worldwide system of taxation
- 6.306 Double deduction
- Close section6.307 Permanent Establishments
- 6.308 Financial instruments
- Close section6.309 Hybrid entities
- 6.310 Withholding tax
- 6.311 Tax residency mismatch
- 6.312 Imported mismatch
- 6.313 Structured arrangements
- 6.314 Carry forward and order of application
- Close section6.1 Transfer Pricing
- Close sectionChapter 7: Corporation Tax Incentive Reliefs
- Close section7.1 Introduction
- Close section7.2 Knowledge Development Box
- 7.201 Introduction
- 7.202 Outline
- Close section7.203 Definitions
- Close section7.204 Interpretation
- 7.205 Family of assets (or products)
- Close section7.206 The allowance
- Separate trade
- Claims
- Profits or gains of a specified trade: income of the trade
- Consistency of treatment regarding expenses incurred
- Computation of qualifying profits
- The relief: reduction of qualifying profits
- Claiming the relief: company preliminary review
- Detailed review and calculation
- Q&A
- Revenue consultation with expert
- What can the independent expert opine on?
- Close section7.207 Interaction and comparison with R&D credit
- 7.208 KDB and Intangibles regime
- 7.209 Trading losses and charges
- 7.210 Incorporation of Irish branch
- 7.211 Mergers
- Close section7.212 Documentation
- 7.213 Anti-avoidance
- 7.214 Application of transfer pricing rules
- 7.215 Transitional
- Close section7.216 Time limits
- 7.217 SMEs: companies with IP income of less than €7.5m
- Close section7.218 Knowledge Development Box (Certification of Inventions) Act 2017
- Introduction
- Definitions and interpretation
- Application for KDB certificate
- Certificate to be issued only for one invention except in certain cases
- Insufficient information with application for a certificate
- Certain applications made in respect of two or more inventions
- Withdrawal of application
- New application made following withdrawn application
- Decision to issue KDB certificate
- Decision to refuse to issue KDB certificate
- Review of decision to refuse to issue KDB certificate
- New application may be made following refusal to issue KDB certificate
- Forgery of documents
- Rules
- Liability for offences by body corporate
- Forms
- 7.219 KDB and double tax relief
- 7.220 Claims
- Close section7.3 Investment in Films
- 7.301 Introduction
- Close section7.302 Definitions, qualifying film, conditions, regulations
- Close section7.303 The relief
- Payable tax credit
- Amounts payable by Revenue treated as overpayment
- Incorrect claim for credit: penalties
- Clawback of credit
- Interest on overdue tax
- No deduction for amount provided to qualifying company
- Group members for certain purposes
- Allowable losses for capital gains tax purposes
- Participation exemption not to apply
- No negligible value claims
- Duration of relief scheme
- 7.304 Transitional provisions
- 7.305 Confidentiality of taxpayer information
- 7.306 Revenue guidelines
- Close section7.4 Credit for Research and Development Expenditure
- 7.401 Outline
- Close section7.402 Definitions and related matters
- Expenditure on research and development
- Key employee
- Research and development activities
- Group expenditure on research and development
- Qualifying group expenditure on research and development
- Qualifying expenditure attributable to a company in relation to a relevant period
- Qualified company
- Relevant period
- Group
- Machinery or plant: apportionment
- Expert verification of expenditure incurred
- Company incurring expenditure on R&D before commencing to trade
- Grant aid and other financial assistance
- Cost sharing and pooling arrangements
- Payments to university etc
- Subcontracting research & development work
- Relevant micro or small sized company
- Close section7.403 The relief
- Close section7.404 Tax credit for expenditure on buildings or structures used for R&D
- 7.405 Limitation on tax credits payable
- 7.406 Regulations
- 7.407 Revenue guidelines
- 7.408 Tax credit for research and development expenditure for smaller companies
- Close sectionChapter 8: Group Relief
- Close section8.1 Introduction
- Close section8.2 Group Payments
- Close section8.3 Group Relief
- 8.301 Introduction
- Close section8.302 Claims to group relief
- Close section8.303 Consortium claims
- Close section8.304 Equity entitlement
- Close section8.305 Kinds of group relief
- Close section8.306 Group relief: treatment of “relevant trading” losses and charges
- Close section8.307 Relationship of group relief to other relief
- 8.308 Corresponding accounting periods
- 8.309 Companies joining or leaving group or consortium
- Close section8.310 Arrangements for transfer of company
- 8.311 Leasing contracts
- 8.312 Partnerships involving companies
- 8.313 Information regarding arrangements
- 8.314 Exclusion of double allowances
- Close section8.315 Claims and payments for group relief
- 8.316 Late submission of returns: restriction of relief
- Close sectionChapter 9: Companies’ Capital Gains and Company Reconstructions
- Close section9.1 The Charge to Tax on Capital Gains
- 9.101 Introduction
- Close section9.102 Capital gains tax principles
- 9.102.1 Introduction
- 9.102.2 Persons chargeable and geographical scope
- Close section9.102.3 Chargeable gains, allowable losses and indexation
- Close section9.102.4 Rate of capital gains tax
- Close section9.102.5 Assets and chargeable gains
- 9.102.6 Assets and disposals of assets
- 9.102.7 Wasting assets
- 9.102.8 Part disposals
- Close section9.102.9 Capital sums derived from assets
- 9.102.10 Value shifting
- 9.102.11 Debts
- 9.102.12 Options
- 9.102.13 Market value
- 9.102.14 Consideration
- Close section9.102.15 Capital gains tax exemptions
- 9.102.16 Time of disposal
- Close section9.102.17 Computation
- Close section9.102.18 Replacement of business and other assets
- 9.102.19 Trading stock
- 9.102.20 Payment of tax
- 9.102.21 Withholding tax
- 9.102.22 Non-resident companies
- 9.102.23 Share issues
- 9.102.24 Location of assets
- Close section9.102.25 Contracts for difference
- 9.102.26 Disposal of certain emissions allowances
- Close section9.103 Development land gains
- 9.104 Recovery of capital gains tax
- 9.105 Double tax relief
- Close section9.106 Exit charge
- 9.106.1 Introduction
- 9.106.2 Definitions and interpretation
- Close section9.106.3 The exit charge
- 9.106.4 Replacement of business and other assets
- 9.106.5 Excluded assets
- 9.106.6 Value of assets to be accepted for CGT purposes
- Close section9.106.7 Deferral of exit tax
- Close section9.106.8 Tax on non-resident company recoverable from another member of group or from controlling director
- 9.106.9 Transitional provision (power to serve notice under former TCA 1997, s 629 not affected)
- 9.106.10 Company ceasing to be resident on formation of SE or SCE
- Close section9.2 Capital Gains Tax Groups
- 9.201 Introduction
- Close section9.202 Groups
- Close section9.203 Intra-group transfers of assets
- 9.204 Non-resident groups
- Close section9.205 Stock in trade
- 9.206 Replacement of business assets by group members
- Close section9.207 Company reconstructions and amalgamations
- 9.208 Disposal outside a group
- Close section9.209 Company leaving group
- Close section9.210 Shares in subsidiary member of group
- Close section9.211 Depreciatory transactions
- Close section9.212 Pre-entry losses
- Close section9.213 Substantial shareholdings relief (“participation exemption”)
- 9.213.1 Introduction and outline
- Close section9.213.2 Parent company
- Close section9.213.3 The relief
- Close section9.213.4 Assets related to shares
- Close section9.213.5 Supplementary provisions
- Previous no gain/no loss transfer: extension of ownership period
- Investee company and earlier company reconstruction
- Effect of deemed disposal and reacquisition
- Degrouping: time deemed sale and reacquisition treated as taking place
- Negligible value
- Effect of repurchase agreement
- Effect of stock lending arrangements
- Appropriations to stock in trade
- 9.213.6 Stamp duty: transfers between associated companies
- Close section9.3 The Mergers Directive
- Close section9.4 Companies and Shareholders
- Close section9.401 Share transactions
- Close section9.402 Reorganisation or reduction of share capital
- 9.403 Conversion of securities
- Close section9.404 Company amalgamations by exchange of shares
- Close section9.405 Company reconstructions and amalgamations
- 9.406 Transfer of business to a company
- Close section9.407 Controlled company transferring assets at undervalue
- Close section9.408 Chargeable gains of non-resident companies
- Close section9.409 Stamp duty: significant reliefs
- Close section9.1 The Charge to Tax on Capital Gains
- Close sectionChapter 10: Close Companies
- Close section10.1 Close Company: Definitions
- Close section10.2 Distributions and Other Issues for Participators and Directors
- Close section10.3 Surcharge
- Close sectionChapter 11: Distributions, Buy-back of Shares
- Close section11.1 Distributions
- 11.101 Meaning of distribution: general
- Close section11.102 Distributions in respect of shares
- Close section11.103 Bonus issues and repayments of capital
- 11.104 Premiums on redemption of share capital
- Close section11.105 Some key concepts and definitions
- 11.105.1 Repayment of share capital
- 11.105.2 Reduction of capital
- 11.105.3 Redemption
- 11.105.4 Purchase of own shares
- Close section11.105.5 New consideration
- Close sectionAnti-avoidance
- Section 135 TCA Part 6 Chapter 2 – Anti-avoidance 1. Introduction
- 2. Consideration derived from share capital (or securities) of a close company
- 2.1 Example
- 3. Certain share disposals involving close companies
- 3.2 Arrangements
- 3.3 Example
- 3.4 Management buy-outs
- 3.4.1 Example – bona fide MBO
- 3.4.2 Example – arrangements to extract income as capital
- 3.5 Earn-outs/deferred consideration
- 3.5.1 Example
- 4. Commencement
- Close sectionAnti-avoidance
- 11.105.6 “Out of assets”
- 11.105.7 “In respect of shares”
- 11.105.8 Member
- 11.106 Interest on certain securities
- Close section11.107 Restrictions on section 130 financing
- Close section11.108 Assets transferred between company and members
- 11.109 Disallowance of reliefs for bonus issues
- Close section11.110 Schedule F
- 11.111 Tax Credits: distributions paid before 6 April 1999
- 11.112 Treatment of distributions from exempt income
- 11.113 Distributions from exempt income: overview
- 11.114 Stallion, greyhound and woodlands exempt distributions
- Close section11.115 Attribution to accounting periods: section 154 election
- Close section11.116 Dividend withholding tax
- 11.116.1 Introduction
- 11.116.2 Dividend withholding tax: outline
- 11.116.3 Definitions
- Close section11.116.4 Dividend withholding tax
- Close section11.116.5 Excluded persons
- Close section11.116.6 Exemption for certain non-residents
- Close section11.116.7 Authorised withholding agent
- Close section11.116.8 Qualifying intermediary
- 11.116.9 Statement to be given to recipients of relevant distributions
- 11.116.10 Credits or repayments in respect of dividend withholding tax
- 11.116.11 Returns, payment and collection of dividend withholding tax
- 11.116.12 Reporting of distributions made under stapled stock arrangements
- Close section11.116.13 Settlement of market claims
- 11.116.14 Delegation of powers of Revenue Commissioners
- 11.116.15 Declarations
- 11.116.16 Retention period for documentation
- 11.117 Dividend warrants, cheques and other orders
- 11.118 Obligation on certain persons to obtain tax reference numbers of persons beneficially entitled to relevant distributions
- Close section11.2 Advance Corporation Tax
- Close section11.3 Buy-back of Shares
- Close section11.301 Introduction
- 11.302 Purchase of shares: company law
- 11.303 Tax consequences: general
- 11.304 The relief
- Close section11.305 Conditions for relief: the company
- Close section11.306 Conditions for relief: the vendor
- 11.307 Meaning of “associate”
- 11.308 Discharging liability to inheritance tax
- 11.309 Share dealers
- 11.310 Treasury shares
- 11.311 Advance corporation tax
- 11.312 Returns and information
- Close section11.313 Other matters
- Close section11.1 Distributions
- Close sectionChapter 12: Special Types of Companies
- Close section12.1 Industrial and Provident Societies
- Close section12.2 Building Societies
- Close section12.3 Trustee Savings Banks
- Close section12.4 Mutual Business and Trade Associations
- Close section12.5 Agricultural and Fishery Societies
- Close section12.6 Insurance Companies
- 12.601 Life companies: introduction
- 12.602 Life assurance business
- Close section12.603 Taxation of life assurance business
- Close section12.603.1 Introduction
- Close section12.603.2 “I–E” computation: general
- 12.603.3 “I–E” computation: management expenses and charges
- 12.603.4 Notional Case I computation
- 12.603.5 Computation of corporation tax
- Close section12.603.6 Taxation of assurance companies: new basis
- Close sectionNew basis – computation
- Case I computation – proprietary companies
- Case I computation – mutual companies
- Mix of new basis and old basis business
- Double Taxation Relief (DTR)
- Pension (PAB) and General Annuity Business (GAB) – Case IV
- Permanent Health Insurance (PHI)
- Mutual Companies
- I-E Basis
- IFSC Companies
- Industrial Branch Business (IB)
- IFRS
- Shareholder gains on investments:
- Accounting for insurance contracts as investment contracts:
- Valuation issues, Case 1
- Close sectionNew basis – computation
- Close section12.603.7 Policyholders: new basis
- Close section12.603.8 Policyholders: certain foreign life policies
- 12.603.9 Foreign life assurance business: deduction of tax from certain proceeds
- 12.603.10 Foreign life assurance funds (old basis only)
- Close section12.603.11 Overseas life assurance companies (old basis only)
- Close section12.604 Capital gains tax issues involving life assurance
- Close section12.605 General insurance business
- Close section12.7 Investment Companies
- Close section12.8 Funds Structures
- 12.801 Introduction: collective investment vehicles
- 12.802 Collective investment structures
- 12.803 Taxation of collective investment undertakings
- 12.804 Specified collective investment undertakings
- Close section12.805 Domestic CIUs
- 12.805.1 Domestic CIUs (excluding non-designated AICs) from 6 April 1994
- 12.805.2 Transitional provisions
- 12.805.3 Undertaking for collective investment
- Close section12.805.4 Taxation of undertakings for collective investment
- Close section12.805.5 Taxation of unit holders
- 12.805.6 Reorganisation of undertakings for collective investment
- Close section12.806 Taxation of investment undertakings
- 12.806.1 Introduction: the gross roll-up tax regime
- Close section12.806.2 Taxation of investment undertakings: outline
- Close section12.806.3 Meaning of “investment undertaking”
- 12.806.4 “Chargeable event” and related definitions
- 12.806.5 Charge to tax
- Close section12.806.6 Gain arising on chargeable event
- (a) Relevant payment
- (b) Any other payment otherwise than on the cancellation, redemption or repurchase of a unit
- (c) Payment on cancellation, redemption or repurchase of a unit
- (d) Transfer of entitlement to a unit
- (e) Appropriation or cancellation of units to meet appropriate tax
- (f) Ending of relevant period
- (g) Deemed chargeable event on 31 December 2000
- Elections
- Close section12.806.7 Gains treated as not arising
- 12.806.8 Personal portfolio investment undertakings
- Close section12.806.9 Appropriate tax
- Close section12.806.10 Taxation of unit holders
- 12.806.11 Reconstructions and amalgamations
- 12.806.12 Amalgamations with offshore funds
- Close section12.806.13 Relevant UCITS and relevant AIF
- Close section12.806.14 Qualifying investor fund
- 12.806.15 Electronic account filing
- 12.807 Special purpose investment companies
- 12.808 Double tax agreements
- 12.809 Returns in relation to a foreign UCITS
- Close section12.810 Common contractual funds
- Close section12.811 Irish Real Estate Funds
- Introduction
- Definitions and interpretation
- Associated enterprises
- Close sectionCalculating the IREF taxable amount
- Close sectionAnti-avoidance: multiple funds
- Tax arising on an IREF taxable event
- Withholding tax arising on IREF taxable event
- Close sectionRepayment of IREF withholding tax
- Returns, payment and collection of IREF withholding tax
- Statement to be given to recipients on making an IREF relevant payment
- Deductions from consideration on disposal of certain units
- Retention and examination of documentation
- Transfer of IREF business to a company
- Transfer of IREF business to a REIT
- Application of Part 27 Chapter 1B
- Close sectionIREF Declarations: Schedule 2C
- Interpretation
- Declaration of pension scheme
- Declaration of PRSA Administrator
- Declaration of investment undertaking
- Declaration of company carrying on life business
- Declaration of charity
- Declaration of credit unions
- Declaration of qualifying company
- Declaration of qualifying intermediaries regarding Approved Retirement Funds or Approved Minimum Retirement Funds
- Declaration of PRSA administrators regarding PRSAs and vested PRSAs
- Declaration of qualifying intermediaries regarding certain specified persons in TCA 1997, s 739K(1)
- Close section12.9 Companies in Liquidation, Receivership
- Close section12.10 Charitable Companies
- Close section12.11 Securitisation Vehicles
- Close section12.12 Real Estate Investment Trusts (REITs)
- 12.1201 Outline
- 12.1202 Interpretation
- 12.1203 Section 705E notice: conditions
- 12.1204 Conditions regarding shares
- 12.1205 Conditions regarding an accounting period
- 12.1206 Notice to become a REIT
- 12.1207 Duration of REIT
- 12.1208 Charge to tax
- Close section12.1209 Certain taxable events
- 12.1210 Funds awaiting reinvestment and disposals and reinvestment
- 12.1211 Taxation of shareholders
- 12.1212 Property income dividends
- 12.1213 Taxation of certain shareholders
- 12.1214 Transfer of assets across the ring fence
- 12.1215 Annual statement to Revenue
- 12.1216 Breach of conditions regarding distributions
- 12.1217 Cessation notice
- 12.1218 Effect of cessation
- 12.1219 Anti-avoidance
- Close sectionChapter 13: Special Types of Business
- Close section13.1 Companies in Partnership
- Close section13.2 Shipping: Tonnage Tax
- 13.201 Introduction
- Close section13.202 Definitions
- Close section13.203 Tonnage tax
- 13.203.1 Calculation of tonnage tax profits
- Close section13.203.2 Election for tonnage tax
- Close section13.203.3 Relevant shipping profits: supplementary provisions
- Close section13.203.4 Tonnage tax trade: ring fence
- 13.203.5 Transactions between associated persons etc
- 13.203.6 Finance costs
- 13.203.7 Withdrawal of relief, deduction or set-off on company leaving tonnage tax
- 13.203.8 Disqualification from re-entry into tonnage tax
- Close section13.204 Matters relating to qualifying ships
- Close section13.205 Capital allowances, balancing charges and related matters
- 13.205.1 Plant and machinery used wholly for tonnage tax trade
- 13.205.2 Plant and machinery used partly for tonnage tax trade
- 13.205.3 Plant and machinery: new expenditure partly for tonnage tax purposes
- 13.205.4 Plant and machinery: change of use of tonnage tax asset
- 13.205.5 Plant and machinery: change of use of non-tonnage tax asset
- 13.205.6 Plant and machinery: provisions relating to balancing charges
- 13.205.7 Reduction in balancing charge by reference to time in tonnage tax
- 13.205.8 Set-off of accrued losses against balancing charge
- 13.205.9 Deferment of balancing charge on re-investment
- 13.205.10 Exit: plant and machinery
- 13.205.11 Industrial buildings
- Close section13.206 Groups, mergers and related matters
- 13.206.1 Company not to be treated as member of more than one group
- 13.206.2 Arrangements for dealing with group matters
- 13.206.3 Meaning of “merger” and “demerger”
- 13.206.4 Merger: between tonnage tax groups or companies
- 13.206.5 Merger: tonnage tax group/company and qualifying non-tonnage tax group/company
- 13.206.6 Merger: tonnage tax group or company and non-qualifying group or company
- 13.206.7 Merger: non-qualifying group or company and qualifying non-tonnage tax group or company
- 13.206.8 Demerger: single company
- 13.206.9 Demerger: group
- 13.206.10 Duty to notify Revenue Commissioners of group changes
- Close section13.207 Miscellaneous
- Close section13.3 Land Development Activities
- 13.301 Introduction and outline
- 13.302 Legislative background
- 13.303 Definitions
- 13.304 Extension of Case I tax charge
- 13.305 Disposals of land in course of winding up
- Close section13.306 Computation of taxable profits
- 13.307 Prevention of certain deductions
- 13.308 Postponement of tax: certain leasebacks
- Close section13.309 Gains of a capital nature
- 13.309.1 General
- Close section13.309.2 The three tests
- 13.309.3 Exceptions
- Close section13.309.4 Charge to tax
- 13.309.5 Recovery of tax from person realising gain
- 13.309.6 Non-residents
- 13.309.7 Power to obtain information
- 13.309.8 Tax on capital gains
- Close section13.309.9 Profits or gains from land zoning: windfall gains
- Close section13.4 Mining Activities
- Close section13.401 Introduction and rate of tax
- Close section13.402 Mine development allowance
- 13.403 Sale of results of exploration
- 13.404 Deemed exploration companies
- 13.405 Surrender of exploration expenditure
- 13.406 Investment allowance
- 13.407 Mineral depletion allowance
- 13.408 Machinery and plant
- Close section13.409 Mine rehabilitation expenditure
- 13.410 Capital sums for sale of scheduled mineral assets
- 13.411 Marginal mine allowance
- 13.412 Expenses allowance for mineral rights
- 13.413 Rents from mining, quarrying etc concerns
- Close section13.5 Petroleum Activities
- 13.501 Petroleum companies: introduction and outline
- 13.502 Definitions
- 13.503 Corporation tax rate
- Close section13.504 Ring fencing
- 13.505 Interest and charges on income
- 13.506 Development expenditure
- 13.507 Exploration expenditure
- 13.508 Surrender of exploration expenditure
- 13.509 Abandonment expenditure
- 13.510 Valuation of petroleum
- 13.511 Changes in licence interests
- Close section13.512 Profit resource rent tax
- Close section13.513 Petroleum Production Tax
- Close section13.6 Patent Income
- 13.601 Introduction
- 13.602 Taxation of patent income
- 13.603 Capital allowances for patent rights
- Close section13.604 Balancing allowances and charges
- Close section13.605 Capital sums: resident vendor
- Close section13.606 Capital sums: non-resident vendor
- 13.607 Spreading of revenue payments over several years
- Close sectionChapter 14: Double Taxation Relief
- Close section14.1 Double Tax Treaties: General
- 14.101 Introduction
- 14.102 Legislative authority for tax treaties
- 14.103 Tax treaties in force
- 14.104 OECD Model Double Taxation Convention
- 14.105 Scope of agreements and taxes covered
- Close section14.106 Definitions
- 14.107 Elimination of double taxation
- 14.108 Tax sparing
- Close section14.109 Articles in tax treaties
- Close section14.109.1 Permanent establishment
- Close section14.109.2 Business profits
- 14.109.3 Shipping and air transport
- 14.109.4 Associated enterprises
- Close section14.109.5 Dividends
- Close section14.109.6 Interest and royalties
- 14.109.7 Income from immovable property
- 14.109.8 Capital gains
- 14.109.9 Income not expressly mentioned
- 14.109.10 Non-discrimination
- 14.109.11 Mutual agreement procedure
- 14.109.12 Exchange of information
- 14.109.13 Anti-Avoidance
- Close section14.110 Beneficial owner
- Close section14.111 UK tax treaty
- Close section14.112 US tax treaty
- 14.112.1 Introduction
- 14.112.2 Relief from double taxation
- 14.112.3 Business profits
- 14.112.4 Associated enterprises
- Close section14.112.5 Dividends
- 14.112.6 Royalties
- 14.112.7 Interest payments to US
- 14.112.8 Immovable property
- 14.112.9 Capital gains
- Close section14.112.10 Limitation on benefits
- LOB article: introduction
- Irish- and US-owned Irish companies
- Qualified person exception
- Alternative exception
- 1. Ownership test:
- 2. Base reduction test:
- 3. Equivalent benefits test:
- Non-EU/NAFTA owned Irish companies
- EU/NAFTA owned Irish companies
- 1. EU/NAFTA owned companies with equivalent home treaty benefits
- 2. EU/NAFTA owned companies without equivalent home treaty benefits
- Active business exception
- Subjective test, discretionary qualification
- Exempt foreign branches
- Mutual funds
- Insurance
- Close section14.113 Foreign Account Tax Compliance Act (FATCA)
- Close section14.2 Credit for Foreign Tax
- 14.201 Introduction
- 14.202 Computation
- 14.203 Foreign taxes available for credit
- 14.204 Effective rate of foreign tax
- 14.205 Portfolio and direct investments
- Close section14.206 Effective foreign rate: portfolio dividends
- 14.207 Foreign underlying tax: direct investments
- 14.208 Corporation tax deductions
- Close section14.209 Unilateral relief
- Close section14.210 Relief for third country taxes
- 14.211 Credit relief for Irish branches of EU companies
- 14.212 Treasury companies
- 14.213 Credit for withholding tax on certain interest
- 14.214 Unrelieved foreign tax on dividends: pooling of tax credits
- 14.215 Unrelieved foreign tax on interest: enhanced tax credit
- 14.216 Dividends from companies taxed as a group
- 14.217 Exchange rates
- Close section14.3 Deduction for Foreign Tax
- Close section14.4 Capital gains: unilateral relief
- Close section14.5 Unilateral relief: Leasing income
- Close section14.6 Relief for Certain Dividends from Foreign Subsidiaries
- Close section14.7 The Parent-Subsidiary Directive
- Close section14.8 Credit Relief: Mergers Directive
- Close section14.9 Foreign Branch Profits
- Close section14.10 Unilateral Relief: Royalty Income
- Close section14.11 Credit Relief: Interest and Royalties Directive
- Close section14.1 Double Tax Treaties: General
- Close sectionChapter 15: Self-Assessment and Administration
- Close section15.1 Self-Assessment
- 15.101 Introduction
- Close section15.102 Self-assessment: main features
- Close section15.103 Preliminary tax and dates for payment of tax
- Close section15.103.1 Introduction
- 15.103.2 Relevant accounting periods
- 15.103.3 Date for payment of corporation tax: non-relevant accounting periods
- Close section15.103.4 Date for payment of corporation tax: relevant accounting periods
- 15.103.5 Date for payment of corporation tax: groups
- 15.103.6 Interest on preliminary tax
- 15.103.7 Preliminary tax overpaid
- Close section15.104 Corporation tax return
- Close section15.104.1 Obligation to make a return
- 15.104.2 Inspector, appropriate inspector, inspector of returns
- 15.104.3 Exclusion from tax return obligation
- 15.104.4 Notices to make returns
- 15.104.5 Foreign accounts/offshore funds
- 15.104.6 Contents of return for corporation tax purposes
- 15.104.7 “Full and true disclosure”
- 15.104.8 Expression of doubt
- 15.104.9 Partnership returns
- 15.104.10 Late return: surcharge and penalties
- 15.105 Assessment to corporation tax
- Close section15.106 Payment of tax
- Close section15.107 Amendment of assessments
- Close section15.108 Payment of tax in amended assessments
- Close section15.2 Administration
- Close section15.201 Introduction
- 15.202 Particulars to be supplied by new company
- 15.203 Notice of liability to corporation tax
- Close section15.204 Application of administrative provisions
- 15.205 Returns
- Close section15.206 Assessments
- 15.206.1 Introduction: definitions
- Close section15.206.2 Making of assessments: general rules
- Close section15.206.3 Revenue assessments and enquiries and related time limits
- Chargeable and other persons: assessment made or amended
- Revenue officer’s right to make enquiries
- Chargeable persons: time limit on Revenue assessments made or amended
- Non-chargeable persons: time limit on Revenue assessments made or amended
- Chargeable persons: assessments and amended assessments in absence of return etc
- Non-chargeable persons: time limit on Revenue assessments made or amended
- Revenue assessments and amended assessments: fraud or neglect
- Other Revenue assessments
- 15.206.4 Other matters relating to assessments: case law
- 15.207 Collection of corporation tax
- Close section15.208 Surcharge for late returns
- Close section15.209 Appeals
- 15.209.1 Introduction
- Close section15.209.2 TCA 1997 Part 40A: Appeals to Appeal Commissioners
- Close section15.209.3 Making and acceptance of appeals
- Close section15.209.4 Pre-hearing proceedings
- Close section15.209.5 Hearings
- Close section15.209.6 Determinations
- Mode of proceeding if appeal adjudicated on by way of a hearing
- Incomplete information
- Determinations and their notification
- Determination in relation to assessments
- Determination other than in relation to assessments
- Revenue Commissioners to give effect to determinations
- Appeals raising common or related issues
- Publication of determinations
- Close section15.209.7 Appealing determinations of the Appeal Commissioners
- Close section15.209.8 Penalties and Sanctions
- Close section15.209.9 Additional appeal provisions: TCA 1997 Part 41A
- Appeals in relation to assessments
- Chargeable persons: no appeal against self-assessment
- Chargeable persons: requirement to submit return and pay tax
- Chargeable and other persons: no appeal against agreed amounts
- Chargeable and other persons: grounds for appeal
- Appeals against amended assessments and provisions concerning preliminary matters
- Non-chargeable persons: other rules
- Close section15.209.10 Transitional provisions
- Interpretation
- Part 40: not to apply where appeal made on or after commencement date
- Existing appeals: extent of application of Parts 40 and 40A to them
- Application of TCA 1997, s 933(1) to existing appeal
- Application of TCA 1997, s 933(7) to existing appeal
- Existing appeals: transition from procedures under Part 40 to those under Part 40A
- Appeal Commissioners vacating office before hearing or determination of appeal completed
- Cases stated – particular instances of steps remaining to be taken
- Supplemental provisions in relation to (F(TA)A 2015, s 29
- Transmission of existing appeals to Appeal Commissioners
- Transitional provisions in relation to records
- References to Appeal Commissioners in other enactments
- 15.210 Penalties
- 15.211 Time limits
- 15.212 Interest on repayment of tax
- Close section15.3 Mandatory Disclosure
- Close section15.4 Country-by-country reporting
- Close section15.5 Competent Authority disclosure of certain information
- Close section15.6 Mandatory automatic exchange of information in relation to reportable cross-border arrangements (EU mandatory disclosure)
- Close section15.1 Self-Assessment
- Table of Legislation
- Close sectionTable of Cases
- Close sectionIndex