Revenue Note for Guidance

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Revenue Note for Guidance

Schedule 19

[Section 744]

Offshore Funds: Distributing Funds

Overview

This Schedule relates to the taxation of offshore funds under Chapter 2 of Part 27.

Part 1 of the Schedule sets out the requirements for a fund to be treated as pursuing a full distribution policy for an account period as follows —

Firstly, a distribution must be made for the account period [or for some other period which falls, in whole or in part, within the account period (account period being defined in section 744(8), (9) and (10))].

Secondly, the amount of a distribution or distributions made for the account period must represent at least 85 per cent of the fund’s income for the period, and not less than 85 per cent of the fund’s “Irish equivalent profits” (these are the profits, other than capital gains, in respect of which the fund would be chargeable to corporation tax if it were an Irish resident company).

Thirdly, the distribution must be made in the account period or within the following 6 months.

Finally, the distribution must be made in such a form that it would be chargeable as income to Irish tax if it were received by an Irish resident.

In applying the 85 per cent distribution test, half of any income of an offshore fund derived from dealing in commodities is left out of account. Accordingly, commodity funds deriving their income wholly from such dealing must only distribute 42.5 per cent of their total income to be certified as distributing funds. This less stringent distribution requirement recognises that it would be imprudent of commodity funds, operating as they do in volatile markets, not to retain a substantial part of their profits as reserves against losses.

The requirement that the distributions should be made in a form chargeable as income is also relaxed to enable funds operating equalisation arrangements, under which income is distributed in capital form, to obtain distributor status.

The distribution test is satisfied if there is no income in an account period but not if a fund fails to make up accounts.

Allowance is made for any legal restrictions on the amount which a fund may distribute.

In the absence of additional measures, it would be possible to avoid the charge under the offshore fund legislation simply by rolling up the gain at one further remove from the investor. For example, Fund A, which receives investors’ money could reinvest it in Fund B. If Fund B rolled up the income accruing, Fund A would receive no income to distribute and would pass the distributor test. When the investors disposed of their interest in Fund A the gain would not be chargeable as income. To prevent funds getting around the 85 per cent distribution requirement by such arrangements, section 744(3) sets out the following additional requirements —

Firstly, the fund cannot hold interests in other offshore funds amounting to more than 5 per cent of the total value of the fund’s assets.

Secondly, the fund cannot hold interests in a single company amounting to more than 10 per cent of the total value of the assets of the fund.

Thirdly, the assets of the fund cannot include more than 10 per cent of the issued share capital of any company or of any class of that share capital.

Finally, each class of investor in the offshore fund must receive at least 85 per cent of the income accruing to the fund in respect of assets representing that class of investor’s investment in the fund.

Part 2 of the Schedule modifies the general conditions set out in Part 1 in the case of —

  • reinvestment in another fund which distributes 85 per cent of its income,
  • investment in a trading company,
  • investment in a wholly-owned subsidiary,
  • investment in a company providing management and administrative services, and
  • de minimis holdings in companies.

Parts 3 and 4 of the Schedule provide a certification procedure. The certification procedure may be initiated by the fund (Part 3) or by an investor in the fund (Part 4). In order to be certified as a distributing fund in respect of an account period, a fund must apply to Revenue within 6 months of the end of the account period in question. If certification is refused, then the fund (or, as the case may be, its trustees) may appeal against the refusal within 30 days of the date of the notice of the refusal.

Where the fund fails to apply for certification and as a result is not certified, an investor in the fund who might otherwise by subject to the charge imposed by Chapter 2 of Part 27 may require Revenue to invite the offshore fund concerned to apply for certification. If the fund declines to apply, Revenue determines the matter on the basis of the available information including any accounts or other information supplied by investors.

PART 1

The distribution test

Requirements as to distributions

par 1(1) An offshore fund is to be certified as a distributing fund with respect to an account period if it pursues a “full distribution policy” for that period. The distribution test consists of 4 conditions, namely —

  • A distribution must be made for the account period in question, or for some other period which falls wholly or partly within that account period.
  • The amount paid to holders of material and other interests in the fund must represent at least 85 per cent of the fund’s income for that period, and be not less than 85 per cent of the fund’s “Irish equivalent profits” for that period.
  • The distribution must be made during the account period or within 6 months of its expiry.
  • The form of the distribution must be such that any part of it received in the State by an Irish resident, and not forming part of the profits of a trade, profession or vocation, would be charged under Case III of Schedule D.

par 1(2) The distribution test is treated as satisfied in any period in which there is neither any income in the fund nor any “Irish equivalent profits”. This is to apply even where there is no distribution made.

par 1(3) If a fund does not make up accounts for an account period, it fails the distribution test for that period.

par 1(4)(a) It may happen that the period for which a fund makes up its account covers more than one “account period” as defined in section 744(8), (9) and (10), or overlaps 2 account periods. If so, income shown in the accounts is apportioned between the account periods on a time basis according to the number of days in each.

par 1(4)(b) A distribution made for a period which does not coincide with the account periods as defined is similarly apportioned between the account periods on a time basis, according to the number of days in each which are comprised in the period for which the distribution was made.

par 1(4)(c) If a distribution is not made for a specified period, but is made out of specified income, that income is attributed to the account period in which it arises. The distribution is then treated as made for that account period.

Example

Island Limited is an offshore fund which, in a particular account period, realises a large once-off profit on a transaction. A dividend is then declared out of this income, but it is not attributed in the company’s accounts to a particular accounting period. For the purposes of the distribution test, the income and the distribution are both attributed to the period in which the income arose.

par 1(4)(d) Where a distribution is made neither for a specified period nor out of specified income, it is treated as made for the last account period which ended before it was made.

par 1(5) Credit for a distribution is not lost where the amount of the distribution exceeds the fund’s income for the period in respect of which it is made. If the amount attributable to the period in question was apportioned (under par 1(4)(b), a fresh apportionment is made of the excess to transfer it to another account period or periods (as may be just and reasonable) falling within the period for which the distribution was made. Otherwise, the excess is treated as additional distributions made for preceding account periods, applying it to later account periods before earlier ones, until it is exhausted.

par 1(6) If a fund is subject to a statutory restriction as to the amount which it may distribute because of an excess of losses over profits (giving these terms their meanings under local law), then, in determining the amount of the fund’s income for the period in question, the amount unavailable for distribution may be deducted.

Example

Faraway Limited is an offshore fund resident in Haven. Under the law of Haven, income may not be distributed until losses carried forward from previous years have been set off. As a result, Faraway Limited may only distribute €200,000 of its total income profits of €300,000 for the period in question. In determining whether Faraway Limited passes the distribution test it is treated as having income of €200,000, not €300,000.

Funds operating equalisation arrangements

par 2(1) The distribution test applies to funds operating equalisation arrangements. Where a disposal is made of an interest in an equalisation fund, the income accrued to the date of the disposal is treated as having been distributed.

par 2(2) For this to be so —

  • The interest disposed of in the equalisation fund must be a material interest (as defined in section 743(2) and (3)).
  • The disposal must be one to which the offshore fund provisions apply so that a gain arising (or part of it) is treated as an offshore income gain. (The offshore fund provisions must apply whether to the equalisation element of the disposal proceeds only or (in the case of a non-qualifying offshore fund) to the entire disposal proceeds. This test will be satisfied where it would be satisfied if share reorganisations were treated as disposals for all the purposes of the offshore fund provisions).
  • The disposal must not be a disposal covered by section 742(4) (that is, throughout the period in which the offshore fund operates equalisation arrangements the income preceding the disposal was taxed in the hands of the investors as income from foreign processions).
  • The disposal must be made to the fund itself or to the fund manager in its capacity as fund manager.

par 2(3) The amount treated as distributed on a disposal of an interest in an equalisation fund is the “income accrued” which means the amount which would be credited to the fund’s equalisation account if, on the date of the disposal, the interest were acquired by another investor by way of initial purchase.

Example

In 2002, A purchases, by subscription, an interest in Clearwater Limited, an offshore fund operating equalisation arrangements. A pays €20,000, of which €2,000 is attributable to income accrued since the fund’s last distribution. Soon afterwards, in 2003, Clearwater Limited makes a distribution to its investors, and part of the sum received by A is treated as a return of capital.

In 2005, A sells the interest to the fund manager for €30,000, of which €3,600 is attributable to income accrued since the last distribution.

Since part of each distribution made by Clearwater Limited is capital in the hands of investors, it would be difficult for the fund to meet the 85 per cent requirement for the distribution test. However, for the purposes of the test, Clearwater Limited is treated as having made a distribution of €3,600 on the date on which A redeemed his/her interest.

par 2(4) If an investor acquires his or her interest and then disposes of it before a distribution has taken place, the amount of the disposal proceeds treated as income is restricted to the income accrued since the acquisition (or since the latest acquisitions if there has been more than one acquisition in the period in question).

Example

B acquires an interest in Quick Limited, an offshore fund operating equalisation arrangements, for €20,000 of which €800 is attributable to accrued income. Four months later, before any distribution has been made to him by Quick Limited. B sells the interest back to the fund managers for €22,000, of which €1,500 is attributable to accrued income. The amount which Quick Limited is treated as having distributed is €1,500 – €800 = €700.

par 2(5) A distribution by an equalisation fund is deemed —

  • to be in such form that, if received in the State by an Irish resident investor, it would be taxed as foreign source income under Case III of Schedule D,
  • to be made from the fund income for the account period in which the disposal occurs, and
  • to be paid to the person who disposed of the interest.

par 2(6) Where a distribution is made out of an equalisation fund to the fund manager in its capacity as fund manager, it only counts towards the 85 per cent distribution requirement to the extent that it is properly referable to that part of the period for which the distribution is made during which the fund manager held its interest, and in that capacity. This is an anti-avoidance measure intended to prevent the test being satisfied by artificial distributions of income.

par 2(7) An investor makes an initial purchase if he/she subscribes for new shares or units in the fund, or buys shares or assets from the fund manger (acting in its capacity as fund manager).

Income taxable under Case III of Schedule D

par 3(1) Generally, in order to pass the distributor test, the fund must make distributions in a form in which Irish investors would pay tax on them under Case III of Schedule D. In certain circumstances a fund (other than a company) might itself have sums of income on which Irish residents would be chargeable to tax under Case III even if the income is not distributed.

par 3(2) For the purposes of the distributor test, such sums (plus income from Irish assets on which the Irish investors would have been chargeable under Case III had the assets been outside the State) are treated as a distribution complying with the conditions, made out of the income of which they form part, and paid to the investors to whose interests they are referable. Accordingly, such sums are added to sums actually distributed in determining whether the fund passes the distribution test.

Commodity income

par 4(1) The term “commodities” and “dealings” are defined for the purposes of paragraph 4.

par 4(2) One half of a fund’s profits from dealing in commodities is left out of account in determining the fund’s income and its Irish equivalent profits for the account period to which the profits relate. If a fund occurs a loss on dealing in commodities, the whole of the loss is taken into account in determining the fund’s income.

par 4(3) A fund’s income may consist partly of commodity income and partly of other income. If so, the distributor test is applied to half the commodity income plus the whole of the other income. The fund’s expenditure is apportioned between the 2 types of income in such manner as is just and reasonable. However, if management expenses are being deducted (under section 83) in computing a fund’s Irish equivalent profits, the 2 types of business are treated as carried on by separate companies.

par 4(4) If a fund operating equalisation arrangements has commodity income, an adjustment must be made of the amount which the fund is treated as distributing on the occasion of a disposal. Where the accrued income includes commodity income, only one-half of the commodity income is treated as distributed.

Irish equivalent profits

par 5(1) For the purposes of paragraph 5, “profits” means income profits, and does not include chargeable gains.

par 5(2) “Irish equivalent profits” are the total profits of the fund for the period in question on which, after allowing for any available deductions, corporation tax would be chargeable if the assumptions set out below were applicable.

par 5(3) Firstly, it is assumed that the fund is a company, resident in the State in the account period in question.

Secondly, it is assumed that the account period, defined in subsections (8), (9) and (10) of section 744, is an accounting period of that company.

Thirdly, dividends from Irish companies, which would be exempt (as franked investment income) if the company were actually resident in the State, are brought into account as if they were dividends from non-resident companies.

par 5(4) Among the deductions which may be made in calculating Irish equivalent profits are —

  • the deduction for undistributable income mentioned in paragraph 1(6),
  • un-refunded Irish income tax paid by deduction, and
  • any foreign tax taken into account in determining the fund’s income which, because it is referable to capital rather than income, would otherwise be left out of account in computing the Irish equivalent profits.

par 5(5) Certain Irish-sourced income which is exempt in the hands of non-residents is not treated as exempt for the purposes of computing the Irish equivalent profits of an offshore fund (for example, income from Irish government stocks).

PART 2

Modifications of conditions for certification in certain cases

Exclusion of investments in distributing offshore funds

par 6(1) The term “qualifying fund” is defined for the purposes of Part 2.

par 6(2) The general rule of section 744(3) is modified where one fund (which is referred to as the “top fund”) invests in another offshore fund (which is referred to as the “second tier” fund) in the following circumstances —

  • the top fund’s interests in this and any other second tier fund are such that it fails the conditions in section 744(3)(a), (b) or (c) (maximum holding in any fund or company); and
  • the second tier fund could be certified as a distributing fund in an account period which coincides with, or overlaps, the top fund’s account period.

In these circumstances, the top fund’s interest in the second tier fund is disregarded in determining the total value of the top fund’s assets.

Example

Top Limited is an offshore fund which holds 40 per cent of the issued share capital of Second Tier Limited, another offshore fund. This investment represents 20 per cent of the value of Top Limited’s assets. In the absence of paragraph 6, Top Limited would fail to meet all 3 of the conditions in section 744(3)(a), (b) and (c). Provided Second Tier Limited passes the distributor test, Top Limited’s interest in Second Tier Limited is ignored in determining whether or not Top Limited passes the test.

The relieving provisions only apply to 2 tier arrangements, and not to structures with 3 or more tiers. Thus if, in the above example, Second Tier Limited in turn held interests in other offshore fund, then Top Limited would fail the test.

par 6(3) There are 2 qualifications of paragraph 6 which ensure that the “top fund” and “second tier fund” are consolidated for the purposes of the tests in section 744(3)(a), (b) and (c).

par 7 If the top fund has relied on paragraph 6 to meet the distributor test, a number of further provisions come into effect to impute certain assets and profits of the second tier fund to the top fund.

In determining whether the top fund —

  • has more than 5 per cent of its assets in an offshore fund,
  • has more than 10 per cent of its assets invested in a single company, or
  • holds more than 10 per cent of the shares of a single company,

the top fund is attributed a proportionate share of any investment held by the second tier or “qualifying” distributing fund if the top or “primary” fund has invested in the same fund or company. The proportion of the common investment to be attributed to the top fund is specified by paragraph 9.

par 8(1) In determining whether the top fund has distributed at least 85 per cent of its “Irish equivalent profits”, it is attributed a proportionate share of the second tier fund’s undistributed income. The proportion is specified in paragraph 9.

par 8(2) The second tier fund’s undistributed income, is the amount by which that fund’s “Irish equivalent profits” for the account period in question exceed the distributions made by it for that period.

par 8(3) The account periods of the top fund and second tier fund may or may not coincide. If they do, the top fund is attributed its proportion of the second tier fund’s “excess income” for that period.

par 8(4) & (5) If the account periods of the top fund and the second tier fund do not coincide, the top fund is attributed on a time apportionment basis its proportion of the aggregate of the second tier fund’s income for periods falling within the top fund’s account period, plus a proportion of profits for overlapping periods.

par 9 The proportion of the second tier fund’s assets or excess income to be taken into account for the purposes of paragraphs 7 and 8(1) is —

average value of top funds interest in the second tier fund

average value of all interests in the second tier fund.

The “average value” referred to is the average value over the relevant account period of the top or “primary” fund.

Offshore funds investing in trading companies

par 10 Funds which supply venture capital and which often take a substantial stake in companies for which they provide capital are not caught by the offshore fund legislation.

In respect of an offshore fund’s investments in trading companies, the 10 per cent limits in section 744(3)(b) and (c) are raised to 20 per cent and 50 per cent respectively. Thus, a fund may invest up to 20 per cent by value of its assets in a single trading company, and it may own up to 50 per cent of the issued share capital (or any class of that share capital) of a particular trading company.

The term “trading company” excludes companies dealing in commodities or financial assets and also companies involved in banking or money lending.

Offshore funds with wholly-owned subsidiaries

par 11 A parent offshore fund is in certain circumstances enabled to be certified as a distributing fund where its holding in a subsidiary company would otherwise fall foul of the 10 per cent limit in section 744(3)(c). The circumstances are where the offshore fund has a wholly-owned subsidiary company. A “wholly-owner subsidiary” is a company in which the whole of the issued share capital or, where there is only one class of share capital, at least 95 per cent of that share capital is —

  • in the case of an offshore fund that is a non-resident company, directly and beneficially owned by the fund,
  • in the case of an offshore fund that is a unit trust scheme with non-resident trustees, directly owned by the trustees for the benefit of the fund, and
  • in the case of offshore arrangements creating rights in the nature of co-ownership taking effect under local law, owned in a manner which corresponds as far as possible with either ownership by a company or by trustees as set out in either of the preceding indents.

The receipts, expenditure, assets and liabilities of the subsidiary are, for the purposes of section 744(3), attributed to the parent fund in proportion to the latter’s ownership of the subsidiary’s issued share capital. The parent company’s interest in the subsidiary and all payments passing between the parent and subsidiary are ignored in determining whether or not the parent qualifies as a distributing fund. Accordingly, the tests for qualification, set out in section 744(3) and qualified in Part 1 of the Schedule, require to be satisfied by the parent and subsidiary, taken as a whole.

Offshore funds with interests in dealing and management companies

par 12(1) In the absence of special provision, a fund which had a subsidiary company to perform management and dealing functions would fall foul of the condition in section 744(3)(c) by owing more than 10 per cent of the shares of a company. Relief is given to enable a fund to meet this condition in circumstances where it owns the whole of the issued share capital in a subsidiary whose business consists wholly of certain functions.

If the subsidiary meets the requirements in subparagraph (2) or (3), the parent company’s interest in the subsidiary is disregarded in determining whether or not the former qualifies as a distributing fund.

par 12(2) The subsidiary is disregarded if it is dealing in material interests in the parent fund for the purposes of and in connection with the management and administration of the fund’s business. The subsidiary must not be entitled to any distribution in respect of any material interest held by it for the time being.

par 12(3) & (4) The subsidiary is disregarded if its business consists wholly of providing services for the fund, or for it and other offshore funds with an interest in the company. The services permitted are —

  • holding any property occupied or used in connection with the fund’s management or administration, and
  • providing administrative, management and advisory services to the fund.

The subsidiary’s remuneration for these services must not exceed the commercial rate.

par 12(5) The management subsidiary is itself permitted to have subsidiaries. If so, all references to the nature of its business, etc are to be taken as references to it and all of its subsidiaries.

Certain investments forming less than 5 per cent of a fund ignored

par 13 Where in any account period the assets of an offshore fund include a holding of more than 10 per cent of the issued share capital of any company (or of any class of that share capital), the fund may generally not be certified as a distributing fund for that period by virtue of section 744(3)(a). However, in determining “distributor status”, such a holding may be ignored if, during the account period in question, the value of that holding and of any interests in any other offshore funds which are not qualifying funds does not exceed 5 per cent of the value of the fund’s total assets. This ensures that a fund will not be disqualified from being certified as a distributing fund simply because a de minimis proportion of its assets includes a majority holding in a small company.

Power of Revenue to disregard certain breaches of conditions

par 14 Revenue has power to disregard breaches of 3 out of the 4 conditions laid down by section 744(3) if satisfied that the failure to comply with the condition occurred inadvertently and that it was remedied without unreasonable delay. Breaches occur if —

  • more than 5 per cent by value of the assets of the fund consists of interests in other offshore funds;
  • more than 10 per cent by value of the assets of the fund consists of interests in a single company;
  • the assets of the fund include more than 10 per cent of the issued share capital of any company or of any class of that share capital.

Revenue are not empowered to disregard a failure to distribute 85 per cent of income to each class of material interest in an offshore fund.

PART 3

Certification procedure

Application for certification

par 15(1) In order to obtain distributor status, a fund must apply for certification to the effect that in respect of a particular account period it pursued a full distribution policy. Where a fund fails to apply for certification, an investor in the fund may request Revenue to invite the fund to apply for certification.

par 15(2) An application for certification made to Revenue must include —

  • the fund’s accounts for the account period (or for an accounting period which includes the period to which the application relates), and
  • such information as Revenue may reasonably require to deal with the application (see below).

par 15(3) Revenue must be satisfied that the fund passes the distributor test, and that it is not disqualified by virtue of any interest it holds in another fund or company.

An application for certification may be made to Revenue by the fund, or on behalf of the fund by the trustee or officer of the fund. It must be made within 6 months after the end of the account period in question or, if later, before 1 January, 1991.

Revenue must give notice in writing to a fund should it decide not to certify the fund as a distributing fund in respect of an account period.

par 15(4) & (5) If at any time Revenue considers that the accounts (or other information supplied in respect of an account period) were not a “full and accurate disclosure of all facts and considerations relevant to the application”, Revenue can give notice in writing of this to the fund, specifying the period concerned. In that event any certificate previously issued for a period specified in a notice is then void.

Information which would normally be required, under paragraph 15(1)(c), in support of an application for certification as a distributing fund —

  • the full name of the fund;
  • the account period, ending after 6 April, 1990, in respect of which certification is sought;
  • a copy of any fund prospectus or explanatory memorandum in issue for the account period under consideration;
  • whether or not equalisation arrangements were in operation throughout the account period and, if so, what form these took;
  • unless supplied in the accounts provided, an analysis of the fund’s investment portfolio as at the accounting date, indicating the percentage value of the fund’s assets represented by each investment and identifying any holdings in other offshore funds (indicating whether each such fund is considered to be a distributing fund) and, in respect of each investment in an unquoted company, the fund’s percentage interest in each class of that company’s share capital;
  • where the last preceding accounts of the fund were drawn up to a date before 6 April, 1990, information as in the preceding indent at that date;
  • where, at any time during the account period for which certification is sought, the fund had a wholly-owned subsidiary company dealing either in commodities or in material interests in the fund or if the fund had an interest in a subsidiary management company, a copy of the accounts of each such company covering or including the fund’s account period;
  • a computation of the fund’s Irish equivalent profits for the account period or, failing this, a summary analysis of surpluses on realisation taken directly to fund reserves during that period;
  • in respect of each class of share in the fund —
    • the amount and date (actual or projected) of each distribution made or to be made in respect of the account period, and
    • the aggregate amount of deemed distributions made in respect of the account period by way of equalisation.

Appeals

par 16(1) If certification is refused or withdrawn by Revenue, the fund (or a trustee or officer) may appeal to the Appeal Commissioners by giving notice in writing to Revenue within 30 days, specifying the grounds of appeal.

par 16(2) The normal appeal procedures relating to appeals against assessments to tax apply, including the statement of a case for the opinion of the High Court. The procedures are modified to the extent that the question at issue (that is, whether an offshore fund should be certified as a distributing fund) requires.

par 16(3) The jurisdiction of the Appeal Commissioners includes jurisdiction to review any decision of Revenue which is relevant to a ground of appeal. Hence, they are not confined to determining whether Revenue acted reasonably on the facts available, but may determine any question on the basis of the evidence before them.

PART 4

Supplementary

Assessment: effect of non-certification

par 17 Assessments to tax under the offshore fund legislation are made on Irish investors. The making of an assessment may mean that no application for certification of the fund has been made. Alternatively, it may mean that an application has been made and refused.

An assessment may not be appealed on the grounds that the fund should have been certified as a distributing fund for the account period in question.

par 18(1) Any person liable to tax on offshore gains, so long as a fund is not certified in respect of a period, may by notice in writing require Revenue to take action to determine whether the fund should be certified in respect of the period.

par 18(2) Revenue must then invite the fund to apply for certification in respect of the period.

par 18(3) Revenue need not issue an invitation if an application has already been made, nor in any event need they do so before the end of the account period to which the invitation relates. The fund has 90 days from the date of the invitation to submit an application.

par 18(4) If the fund does not submit an application within the time limits of 6 months after the account period or 90 days after the invitation, whichever is the latest, Revenue may determine the question of certification as if an application had been made.

par 18(5) Where 2 or more persons require Revenue to invite an offshore fund to apply for certification, Revenue’s obligations are fulfilled when it have taken action in respect of one of them.

par 18(6) Before giving notice that a fund will not be certified, Revenue must have regard to all accounts and other information furnished by persons who set the application procedure in motion. Such accounts and information are treated as if they have been furnished in compliance with paragraph 15(1), that is, the normal procedure for application. Revenue could, therefore, give notice under paragraph 15(4) that the submissions did not make a full and accurate disclosure of the facts, if that were the case.

par 18(7) The procedure in this paragraph is available only where no previous application for certification has been made and refused. However, a renewed application may be made under the paragraph if the person giving notice furnishes Revenue with accounts or information not given to Revenue at the time of the earlier determination. In these circumstance, Revenue must reconsider its previous determination and may, after all, certify the fund as a distributing fund.

par 18(8) If a fund fails to submit an application following an invitation by Revenue under paragraph 18(4), Revenue must notify the person who required the invitation to be issued of its determination. No appeal may be made against such notification.

Information as to decisions on certification, etc

par 19 Revenue are not precluded by obligations of secrecy from disclosing, to any person appearing to have an interest, their decision as to whether or not to certify a fund, or the content and effect of a notice given by them that full and accurate disclosure has not been made. Such disclosure would not involve mentioning the names of particular persons interested in the fund.

par 20 The Revenue Commissioners are empowered to delegate their functions under the Schedule to nominated officers.

Relevant Date: Finance Act 2019