705A Interpretation and application.

In this Part—

“aggregate income”, in relation to a company or group, means the aggregate profits of the company or group, as the case may be, as—

(a) reduced by the aggregate net gains of the company or group, as the case may be, where aggregate net gains arise, or

(b) increased by the aggregate net losses of the company or group, as the case may be, where aggregate net losses arise;

“aggregate net gains”, in relation to a company or group, means the amount by which the sum of the gains recognised in arriving at the aggregate profits of the company or group, as the case may be, being gains which arise on the revaluation or disposal of investment property or other non-current assets, exceeds the sum of the losses so recognised, being losses which arise on such revaluation or disposal;

“aggregate net losses”, in relation to a company or group, means the amount by which the sum of the losses recognised in arriving at the aggregate profits of the company or group, as the case may be, being losses which arise on the revaluation or disposal of investment property or other non-current assets, exceeds the sum of the gains so recognised, being gains which arise on such revaluation or disposal;

“aggregate profits”, in relation to a company or group, means the profit that is stated in accounts of the company or consolidated accounts of the group, as the case may be, being accounts made up in accordance with relevant accounting standards, or, where such accounts or consolidated accounts, as the case may be, have not been made up, the profits which would be so stated if such accounts or consolidated accounts, as the case may be, were made up in accordance with those standards;

“authorised officer” means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this Part;

“control” shall be construed in accordance with section 432;

“distribution” has the same meaning as in the Corporation Tax Acts;

“group” means a group of companies comprising a holding company and its wholly-owned subsidiaries and a reference to a member of a group shall be construed as a reference to any company in the group;

“group Real Estate Investment Trust” means a group, where—

(a) the principal company of that group:

(i) has given a notice under section 705E, and

(ii) complies with the conditions in section 705B(1)(a),

and

(b) the group complies with the conditions in section 705B(1)(b),

and any references to “group REIT” shall be construed accordingly;

“holding company” means a company that holds another company as its wholly-owned subsidiary and, for the purpose of this definition and for the purpose of the ^[2]>immediately preceding definition^<[2][2]>definition of “group”^<[2], a company shall be a wholly-owned subsidiary of another company if and so long as 100 per cent of its ordinary share capital is directly owned by that other company;

“market value” shall be construed in accordance with section 548;

“principal company” means the company within a group that gives a notice to the Revenue Commissioners under section 705E(2);

“property income”, in relation to a company or group, means the property profits of the company or group, as the case may be, as—

(a) reduced by the property net gains of the company or group, as the case may be, where property net gains arise, or

(b) increased by the property net losses of the company or group, as the case may be, where property net losses arise;

“property income dividend” means a dividend paid by a REIT or the principal company of a group REIT, as the case may be, from its property income;

“property net gains”, in relation to a company or group, means the amount by which the sum of the gains recognised in arriving at the aggregate profits of the company or group, as the case may be, being gains which arise on the revaluation or disposal of investment property or other non-current assets which are assets of the property rental business, exceeds the sum of the losses so recognised, being losses which arise on such revaluation or disposal;

“property net losses”, in relation to a company or group, means the amount by which the sum of the losses recognised in arriving at the aggregate profits of the company or group, as the case may be, being losses which arise on the revaluation or disposal of investment property or other non-current assets which are assets of the property rental business, exceeds the sum of the gains so recognised, being gains which arise on such revaluation or disposal;

“property profits”, in relation to a company or group, means an amount which is the lesser of—

(a) the amount which would be the aggregate profits of the company or group, as the case may be, if the residual business, if any, of the company or group, as the case may be, were disregarded, and

(b) the aggregate profits of that company or group, as the case may be;

“property rental business” means a business which is carried on by a REIT or a group REIT, as the case may be, for the sole purpose of generating rental income in the State or outside the State, and, for the purpose of this definition, such businesses of a group are to be treated as a single business;

“qualifying investor” in relation to a REIT or a group REIT, as the case may be, means—

(a) an investment undertaking within the meaning of section 739B(1), or

(b) a person referred to in paragraph (a), (b), (f) or (ka) of section 739D(6);

“Real Estate Investment Trust” means a company which—

(a) has given a notice under section 705E, and

(b) complies with the conditions in section 705B(1),

and any references to “REIT” shall be construed accordingly;

“recognised stock exchange” means a stock exchange in a Member State, being a stock exchange which—

(a) is regulated by the appropriate regulatory authority of that Member State, and

(b) other than in the case of the Irish Stock Exchange, has substantially the same level of recognition in that Member State as the Irish Stock Exchange has in the State;

“relevant accounting standards” has the meaning assigned to it in Schedule 17A;

“rental income” means any rent-charge or payment in the nature of rent in respect of—

(a) residential premises within the meaning of section 96(1), and

(b) any building other than such residential premises;

“residual business”, in relation to a REIT or a group REIT, means any business carried on by the REIT or group REIT, as the case may be, which is not property rental business;

“specified accounting period” means the accounting period in which the company or principal company, as the case may be, gives a notice under section 705E;

“specified debt” means any debt incurred by a REIT or group REIT in respect of monies borrowed by, or advanced to, the REIT or group REIT, as the case may be;

“specified return date for the accounting period” has the same meaning as in section 959A;

“the Acts” means the Tax Acts and the Capital Gains Tax Acts.