Taxes Consolidation Act, 1997 (Number 39 of 1997)
77 Miscellaneous special rules for computation of income.
[CTA76 s12(1) to (7)]
(1) For the purposes of corporation tax, income tax law as applied by section 76 shall apply subject to subsections (2) to (7).
(2) (a) Where a company begins or ceases to carry on a trade, or to be within the charge to corporation tax in respect of a trade, the company’s income shall be computed as if that were the commencement or, as the case may be, discontinuance of the trade, whether or not the trade is in fact commenced or discontinued.
(b) Notwithstanding paragraph (a), where any provision of the Income Tax Acts is applied for corporation tax by the Corporation Tax Acts, this subsection shall not apply for any purpose of that provision if under any enactment a trade is not to be treated as permanently discontinued for the corresponding income tax purpose.
(3) In computing income from a trade, section 76(5)(b) shall not prevent the deduction of yearly interest.
(4) In computing a company’s income for any accounting period from the letting of rights to work minerals in the State, there may be deducted any sums disbursed by the company wholly, exclusively and necessarily as expenses of management or supervision of those minerals in that period; but any enactments restricting the relief from income tax that might be given under section 111 shall apply to restrict in the like manner the deductions that may be made under this subsection.
(5) Where a company is chargeable to corporation tax in respect of a trade under Case III of Schedule D, the income from the trade shall be computed in accordance with the provisions applicable to Case I of Schedule D.
(6) The amount of any income arising from securities and possessions in any place outside the State shall be treated as reduced (where such a deduction cannot be made under, and is not forbidden by, any provision of the Income Tax Acts applied by the Corporation Tax Acts) by any sum paid in respect of income tax in the place where the income has arisen.
[1]>
(6A) (a) In this subsection—
“amount of the income referable to the relevant interest” shall be construed in accordance with paragraph 9D(1)(b)(ii) of Schedule 24;
“relevant foreign tax” and “relevant interest” have the same meanings, respectively, as in paragraph 9D(1)(a) of Schedule 24.
(b) Where, as respects an accounting period of a company, the trading income of a trade carried on by the company includes an amount of relevant interest, the amount of the income referable to the relevant interest shall be treated as reduced (where such a deduction cannot be made under, and is not forbidden by, any provision of the Income Tax Acts applied by the Corporation Tax Acts) by [2]>the relevant foreign tax in relation to the relevant interest<[2][2]>so much of the relevant foreign tax in relation to the relevant interest as does not exceed that amount of the income referable to the relevant interest<[2].
(6B) (a) In this subsection—
“amount of the income referable to the relevant royalties” shall be construed in accordance with paragraph 9DB(1)(b)(ii) of Schedule 24;
“relevant foreign tax” and “relevant royalties” have the same meanings, respectively, as in paragraph 9DB(1)(a) of Schedule 24.
(b) Where, as respects an accounting period of a company, the trading income of a trade carried on by the company includes an amount of relevant royalties, the amount of the income referable to the relevant royalties shall be treated as reduced (where such a deduction cannot be made under, and is not forbidden by, any provision of the Income Tax Acts applied by the Corporation Tax Acts) by [3]>the relevant foreign tax in relation to the relevant royalties<[3][3]>so much of the relevant foreign tax in relation to the relevant royalties as does not exceed that amount of the income referable to the relevant royalties<[3].
<[1]
(7) Paragraphs (e) and (f) of Case III of Schedule D in section 18(2) shall for the purposes of corporation tax extend to companies not resident in the State, in so far as those companies are chargeable to tax on income of descriptions which, in the case of companies resident in the State, are within those paragraphs (but without prejudice to any provision of the Income Tax Acts specially exempting non-residents from income tax on any particular description of income).
[1]
Inserted by FA12 s50(1). Applies as respects accounting periods ending on or after 1 January 2012.
[2]
Substituted by F(No.2)A13 s32(1)(a). Applies as respects accounting periods beginning on or after 1 January 2014.