626 Tax on company recoverable from other members of group

Summary

This section empowers the Revenue Commissioners to recover unpaid tax in respect of a chargeable gain accruing to a member of a group of companies by assessing the principal member of the group or any member which owned the asset while a member of the group. The section also provides rights of recovery for such tax as is paid under this section.

Details

(1) If a chargeable gain accrues to a member of a group and any of the corporation tax for the relevant accounting period is not paid within 6 months of the due date, the inspector may, within 2 years of the date on which the tax became payable, assess (in the name of the defaulting company) —

• the principal company of the group at the time when the gain accrued, or
• any other company which in any part of the 2 year period ending with the accrual of the gain was a member of the group and owned the asset or any interest in it.
• the tax so assessed is not to exceed tax on the amount included in respect of the gain in the assessment on the defaulting company at the charged in that assessment.

(2) A company assessed and charged under this section is entitled to recover the tax charged on it from the defaulting company or from the principal company of the group. A principal company so assessed is entitled to recover the tax from the defaulting company or from any other member of the group who owned the asset while a member of the group.

Relevant Date: Finance Act 2019