Taxes Consolidation Act, 1997 (Number 39 of 1997)
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507 Application to subsidiaries.
[FA84 s26; FA85 s13(d); FA91 s15(1)(f)]
(1) A qualifying company may in the relevant period have one or more subsidiaries if—
(a) the conditions in subsection (2) are satisfied in respect of the subsidiary or each subsidiary and, except where provided in subsection (3), continue to be so satisfied until the end of the relevant period, and
(b) the subsidiary or each subsidiary is a company—
(i) within section 495(3)(a)(i), or
(ii) which exists solely for the purpose of carrying on any trade which consists solely of any one or more of the following trading operations—
(I) the purchase of goods or materials for use by the qualifying company or its subsidiaries,
(II) the sale of goods or materials produced by the qualifying company or its subsidiaries, or
(III) the rendering of services to or on behalf of the qualifying company or its subsidiaries.
(2) The conditions referred to in subsection (1)(a) are—
(a) that the subsidiary is a 51 per cent subsidiary of the qualifying company,
(b) that no other person has control of the subsidiary within the meaning of section 11, and
(c) that no arrangements are in existence by virtue of which the conditions in paragraphs (a) and (b) could cease to be satisfied.
(3) The conditions referred to in subsection (1)(a) shall not be regarded as ceasing to be satisfied by reason only of the fact that the subsidiary or the qualifying company is wound up or dissolved without winding up if—
(a) it is shown that the winding up or dissolution is for bona fide commercial reasons and not part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax, and
(b) the net assets, if any, of the subsidiary or, as the case may be, the qualifying company are distributed to its members before the end of the relevant period or, in the case of a winding up, the end (if later) of 3 years from the commencement of the winding up.
(4) Where a qualifying company has one or more subsidiaries in the relevant period, this Part shall apply subject to Schedule 10.
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507 Reporting of relief.
(1) A person (being a qualifying company or the managers of a designated fund) shall, when required to do so by notice in writing by the Revenue Commissioners, furnish the Revenue Commissioners within such time as may be specified in the notice (not being less than 30 days) with such information, in relation to the relief provided for in this Part, as the Revenue Commissioners may reasonably require from that person for the purpose of [4]>the annual reports required in accordance with [2]>section 7.1 of the Community Guidelines on State Aid to Promote Risk Capital Investments in Small and Medium-Sized Enterprises1.<[2][3]>[2]>section 5.4 of the Community Guidelines on State aid to promote risk finance investments1.<[2]<[3][3]>Article 11 of Commission Regulation (EU) No. 651/2014 of 17 June 20141<[3]<[4]
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(a)the annual reports required in accordance with Article 11 of Commission Regulation (EU) No. 651/2014 of 17 June 20141, and
(b)publishing the following information in relation to all qualifying companies:
(i)the name of the company;
(ii)the address of the company;
(iii)the Companies Registration Office number of the company;
(iv)the amount of finance raised;
(v)the date of share issue and type of relief.
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(2) [5]>Notwithstanding any obligation as to secrecy imposed on them by the Tax Acts or the Official Secrets Act 1963<[5][5]>Notwithstanding section 851A<[5], the Revenue Commissioners may furnish the information obtained in accordance with subsection (1) to the person submitting the annual reports referred to in that subsection.
(3) The Revenue Commissioners may nominate any of their officers to discharge any function authorised by this section to be discharged by the Revenue Commissioners.
(4) No obligation as to secrecy imposed by [6]>statute or otherwise<[6][6]>section 851A<[6] shall preclude the Revenue Commissioners from publishing information obtained by them in accordance with subsection (1).
(5) Where any person fails to comply with a requirement to furnish the information in accordance with subsection (1), that person shall be liable to a penalty of €2,000 and, if that failure continues after the period of 30 days referred to in that subsection, a further penalty of €50 for each day on which the failure so continues.
Footnote
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1 OJ No. C194 of 18.8.2006, p. 20
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1 OJ No. C19, 22.1.2014, p.4
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1 OJ No. L187, 26.6.2014, p.1
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1 OJ No. L 187, 26.6.2014, p.1
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507. The relief (Chapter 5)
(1) Notwithstanding section 502, a specified individual who makes a relevant investment in a qualifying company, the activities of which constitute a qualifying new venture, shall be entitled, subject to subsections (2) and (3), to relief in respect of that relevant investment, which shall be given as a deduction from his or her total income for the year of assessment in which the shares are issued.
(2) In a year of assessment, the maximum relevant investment in respect of which a specified person can make a claim under subsection (1) is €€100,000.
(3) (a) Subject to this subsection, a specified individual may, in relation to a relevant investment made by such individual (being that individual’’s first such investment), elect by notice in writing to a Revenue officer to have the relief due given as a deduction from such individual’’s total income for any one of the 6 years of assessment immediately before the year of assessment in which the eligible shares in respect of that investment are issued which such individual nominates for the purpose, instead of (as provided for in subsection (1)) as a deduction from the specified individual’’s total income for the year of assessment in which the shares are issued, and accordingly, subject to subsection (2) and paragraphs (c) and (d), for the purpose of granting such relief (but for no other purpose of this Part) the shares shall be deemed to have been issued in the year of assessment so nominated.
(b) Where the specified individual makes a subsequent relevant investment (being that individual’s second such investment)——
(i) in the same company as such individual’’s first such investment, and
(ii) within either the year of assessment following the end of the year of assessment in which such individual’’s first such investment was made or the year of assessment subsequent to that year,
then, the specified individual may, in relation to such individual’’s second such investment, elect by notice in writing to a Revenue officer to have the relief due given as a deduction from such individual’’s total income for any one of the 6 years of assessment immediately before the year of assessment in which the eligible shares in respect of such individual’’s first such investment were issued which such individual nominates for the purpose, instead of (as provided for in subsection (1)) as a deduction from such individual’’s total income for the year of assessment in which the eligible shares in respect of such individual’s second such investment are issued and, accordingly, subject to subsection (2) and paragraphs (c) and (d), for the purpose of granting such relief (but for no other purpose of this Part) the shares issued in respect of the second such investment shall be deemed to have been issued in the year of assessment so nominated.
(c) Where any of the years of assessment following the year of assessment nominated under paragraph (a) or (b), as the case may be, precede the year of assessment in which the eligible shares in respect of the specified individual’’s first relevant investment are in fact issued, section 508 shall operate to give relief in such years of assessment as may be nominated by such individual for that purpose.
(d) To the extent that the amount of the relief which would be due in respect of the specified individual’’s first relevant investment or second relevant investment, as the case may be, has not been given in accordance with paragraphs (a) to (c) it shall, subject to section 508, be given for the year of assessment in which the eligible shares in respect of the first such investment or the second such investment, as the case may be, are in fact issued or, if appropriate, a subsequent year of assessment.
(e) This subsection applies in respect of not more than 2 relevant investments made by a specified individual on or after 2 June 1995.
(f) This subsection applies notwithstanding any limitation in section 865(4) or section 959V(6) on the time within which a claim for a repayment of tax is required to be made, and section 865(6) shall not prevent the Revenue Commissioners from repaying an amount of tax as a consequence of an election made under paragraph (a) or (b) where the specified individual has made a timely claim for relief in accordance with section 508G and a valid claim for a repayment of tax within the meaning of section 865(1)(b).
(4) References in this section to the amount of the relief are references to the amount of the deduction given under subsection (1) or (3), as may be appropriate.
(5) Where a specified individual claims relief under this section, no relief shall be granted to that individual under section 502 in respect of the same qualifying company.
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[1]
Substituted by FA11 s33(1)(a). Has effect in respect of shares issued on or after 25 November 2011. Note: FA 12 s26 (2) amends FA 11 s33 and provides: (b) This section does not have effect in respect of shares issued before 25 November 2011 and, for all the purposes of Part 16 in connection with those shares, the Principal Act has effect as if this section had not been enacted. (c) This section does not have effect in respect of shares issued on or after 25 November 2011 and on or before 31 December 2011 where— (i) the company issuing the shares, or (ii) where the shares are acquired by an investment fund, the fund acquiring the shares, elects by notice in writing to the Revenue Commissioners on or before 31 December 2011 that, for all the purposes of Part 16 in connection with those shares, the Principal Act has effect as if this section had not been enacted.
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Substituted by FA14 s27(1)(g). Applies to shares issued on or after 13 October 2015.
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Substituted by FA15 s18(1)(b). Applies to shares issued on or after 13 October 2015.
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Substituted by FA16 s20(1)(b)(i). Applies to shares issued on or after 13 October 2015.
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Substituted by FA16 s20(1)(b)(ii). Applies to shares issued on or after 13 October 2015.
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Substituted by FA16 s20(1)(b)(iii). Applies to shares issued on or after 13 October 2015.