Taxes Consolidation Act, 1997 (Number 39 of 1997)
[1]>
739E Deduction of tax on the occurrence of a chargeable event.
(1) [30]>In this section<[30][30]>Subject to subsection (1B), in this section<[30] and sections 739F and 739G, “appropriate tax”, in connection with a chargeable event in relation to an investment undertaking in respect of a unit holder, means a sum representing income tax on the amount of the gain arising to an investment undertaking—
[9]>
(a) where the amount of the gain is provided by section 739D(2)(a), at the standard rate for the year of assessment in which the gain arises,
(b) where the chargeable event happens on or after 1 January 2001 and the amount of the gain is provided by [2]>paragraph (b), (c) or (d)<[2][2]>paragraph (b), (c), [6]>(d) or (dd)<[6][6]>(d), (dd) or (ddd)<[6]<[2] of section 739D(2), at a rate determined by the formula—
(S + 3) per cent,
where S is the standard rate per cent (within the meaning of section 4), and
<[9]
[9]>
[16]>
(a) subject to paragraph (ba), where the amount of the gain is provided by section 739D(2)(a), at the standard rate for the year of assessment in which the gain arises,
<[16]
[20]>
[16]>
(a) subject to paragraph (ba), where the amount of the gain is provided by section 739D(2)(a), at a rate determined by the formula—
(S + 3) per cent
where S is the standard rate per cent for the year of assessment in which the gain arises,
<[16]
<[20]
[26]>
[20]>
(a) subject to paragraph (ba), where the amount of the gain is provided by section 739D(2)(a), at the rate of [23]>25 per cent<[23][23]>27 per cent<[23],
<[20]
<[26]
[26]>
(a) subject to paragraph (ba), where the amount of the gain is provided by section 739D(2)(a), at the rate of—
(i) 25 per cent where the unit holder is a company, and
(ii) [32]>30 per cent<[32][35]>[32]>33 per cent<[32]<[35][35]>41 per cent<[35] in any other case,
<[26]
[21]>
(b) subject to paragraph (ba), where the chargeable event happens on or after 1 January 2001 and the amount of the gain is provided by paragraph (b), (c), (d), (dd) or (ddd) of section 739D(2), at a rate determined by the formula—
[17]>(S + 3) per cent,<[17][17]>(S + 6) per cent<[17]
where S is the standard rate per cent (within the meaning of section 4),
<[21]
[27]>
[21]>
(b) subject to paragraph (ba), where the chargeable event happens on or after 1 January 2001 and the amount of the gain is provided by paragraph (b), (c), (d), (dd) or (ddd) of section 739D(2), at the rate of [24]>28 per cent<[24][24]>30 per cent<[24],
<[21]
<[27]
[27]>
(b) subject to paragraph (ba), where the chargeable event happens on or after 1 January 2001 and the amount of the gain is provided by paragraph (b), (c), (d), (dd) or (ddd) of section 739D(2), at the rate of—
(i) 25 per cent where the unit holder is a company, and
(ii) [33]>33 per cent<[33][36]>[33]>36 per cent<[33]<[36][36]>41 per cent<[36] in any other case,
<[27]
(ba) where in the case of a personal portfolio investment undertaking, the chargeable event happens on or after 20 February 2007,[37]> at a rate determined by the formula—<[37][37]>at the rate of 60 per cent<[37], and
[37]>
[18]>(S + 23) per cent,<[18][22]>[18]>(S + 26) per cent<[18]<[22][25]>[22]>(S + 28) per cent<[22]<[25][28]>[25]>(S + 30) per cent<[25]<[28][34]>[28]>(S + 33) per cent<[28]<[34][34]>(S + 36) per cent<[34]
<[37]
[37]>where S is the standard rate per cent (within the meaning of section 4)<[37]
<[9]
(c) where the chargeable event happens in the period commencing on 1 April 2000 and ending on 31 December 2000 and the amount of the gain is provided by paragraph (b), (c), (d) or (e) of section 739D(2), at a rate of 40 per cent.
[5]>
(1A) (a) In this subsection—
[10]>
“first tax”, in relation to a unit of a unit holder, means the appropriate tax that was accounted for and paid in accordance with section 739F in respect of a chargeable event referred to in subsection 739D(2A)(b) in respect of that unit;
<[10]
[10]>
“first tax”, in relation to a unit of a unit holder, means the appropriate tax that was accounted for and paid in accordance with [19]>section 739F<[19][19]>section 739F or, as the case may be, in accordance with subsection (2A)(b)(iii) and section 739G(2A)<[19] in respect of a chargeable event within the meaning of paragraph (ccc) of the definition of “chargeable event” in section 739B(1) in relation to an investment undertaking in respect of the unit and which has not been repaid;
<[10]
[11]>
“new gain”, in relation to a unit of a unit holder, means the gain determined in accordance with section 739D in respect of a chargeable event referred to in subsection 739D(2A)(a) in respect of that unit;
<[11]
[11]>
“new gain”, in relation to a unit of the unit holder, means a gain referred to in section 739D(2A) in respect of that unit;
<[11]
“second tax” means appropriate tax calculated in accordance with subsection (1) in respect of that new gain.
(b) (i) Where at any time subsection 739D(2A) applies in respect of a unit of a unit holder in an investment undertaking a proportion (in this subsection referred to as the “relevant proportion”) of first tax shall be set off against any amount of second tax.
[12]>
(ii) Where such relevant proportion exceeds such second tax, an amount equal to the amount of the excess shall, subject to subparagraph (iii)—
(I) be paid by the investment undertaking to the unit holder in respect of the unit,
(II) be included in a return under section 739F(2), and
(III) be treated as an amount which may be set off against appropriate tax payable by the investment undertaking in respect of any chargeable event in the period for which such a return is made, or any subsequent period.
<[12]
[12]>
(ii) Where such relevant proportion exceeds such second tax, an amount equal to the amount of the excess shall—
(I) (A) be paid by the investment undertaking to the unit holder in respect of the unit,
(B) be included in a return under section 739F(2), and
(C) be treated as an amount which may be set off against appropriate tax payable by the investment undertaking in respect of any chargeable event in the period for which such a return is made, or any subsequent period,
or
(II) if the investment undertaking so elects, in writing to the Revenue Commissioners, be paid by the Revenue Commissioners to the unit holder in respect of the unit on receipt of a claim by the unit holder but only if immediately before the chargeable event the value of the number of units of the investment undertaking in respect of which, if a gain had arisen, would be treated as arising to the investment undertaking on the happening of a chargeable event does not exceed 15 per cent of the value of the total number of units of the investment undertaking at that time,
and where the investment undertaking has advised the unit holder, in writing, that clause (II) applies and has supplied the unit holder with the necessary information to enable the claim to be made to the Revenue Commissioners, then the investment undertaking shall be deemed to have made the election specified in that clause; otherwise the election under that clause shall not be made.
<[12]
[13]>
(iii) Subparagraph (ii) shall not apply unless—
(I) the unit holder makes a declaration to the investment undertaking that the chargeable event referred to in subsection 739D(2A)(a) is effected for bona fide reasons and does not form part of any transaction of which the main purpose or one of the main purposes is the recovery of appropriate tax under the provisions of this subsection, and
(II) the investment undertaking does not have reasonable grounds to believe that the declaration under clause (I) is false.
<[13]
(c) For the purposes of this subsection, “relevant proportion” is determined by the formula—
A |
× |
B |
|
C |
where—
A is the first tax,
B is the new gain, and
C is a gain determined in accordance with section 739D if the unit to which the first tax applied was cancelled at that time.
<[5]
[31]>
(1B) Where the unit holder is a company—
(a) the rate specified in paragraph (a)(i) or paragraph (b)(i), as the case may be, of subsection (1) shall not apply unless the unit holder has made the declaration referred to in paragraph (b), and
(b) the rate specified in paragraph (a)(ii) or paragraph (b)(ii), as the case may be, of subsection (1) shall apply unless immediately before the chargeable event, the investment undertaking is in possession of a declaration from the unit holder to the effect that the unit holder is a company and which includes the company’s tax reference number (within the meaning of section 891B(1)).
<[31]
(2) [14]>An investment undertaking<[14][14]>Subject to subsection (2A), an investment undertaking<[14] shall account for the appropriate tax in connection with a chargeable event in relation to a unit holder in accordance with section 739F.
[15]>
(2A) (a) Subsection (2) shall not apply in relation to a chargeable event to which paragraph (ccc) in section 739B(1) refers where—
(i) immediately before the chargeable event the value of the number of units in the investment undertaking, or if an umbrella scheme exists in the sub-fund concerned, in respect of which any gains arising would be treated as arising to the investment undertaking, or the sub-fund as the case may be, on the happening of a chargeable event is less than 10 per cent of the value of the total number of units in the investment undertaking, or the sub-fund as the case may be, at that time, and
(ii) the investment undertaking has made an election, in writing, to the Revenue Commissioners that it will make in respect of each year of assessment a statement (including where it is the case, a statement with a nil amount) to the Revenue Commissioners in electronic format approved by them, on or before 31 March in the year following the year of assessment, which specifies in respect of each person who is a unit holder—
(I) the name and address of the person,
(II) the value at the end of the year of assessment of the units to which the person is entitled at that time, and
(III) such other information as the Revenue Commissioners may require.
(b) Where paragraph (a) applies—
(i) the investment undertaking shall advise the unit holder concerned, in writing, that paragraph (a) applies,
(ii) the statement specified in paragraph (a)(ii) shall be made by the investment undertaking in accordance with that paragraph, and
(iii) the unit holder shall be deemed for that chargeable period to be a chargeable person for the purposes of [29]>sections 951 and 1084<[29][29]>Chapter 3 of Part 41A and section 1084<[29], and the return of income to be delivered by the person for that chargeable period shall include the following particulars:
(I) the name and address of the investment undertaking, and
(II) the gains arising on the chargeable event.
<[15]
(3) An investment undertaking which is liable to account for appropriate tax in connection with a chargeable event in relation to a unit holder shall, at the time of the chargeable event, where the chargeable event is—
(a) the making of a payment to a unit holder, be entitled to deduct from the payment an amount equal to the appropriate tax,
(b) (i) the transfer by a unit holder of entitlement to a unit, [3]>or<[3]
[4]>
(ia) the appropriation or cancellation of units as a consequence of the transfer by a unit holder of entitlement to a [7]>unit, or<[7][7]>unit,<[7]
<[4]
[8]>
(ib) the ending of a relevant period, or
<[8]
(ii) deemed to happen on 31 December 2000,
be entitled to appropriate or cancel such units of the unit holder as are required to meet the amount of appropriate tax,
and the investment undertaking shall be acquitted and discharged of such deduction or, as the case may be, such appropriation or cancellation as if the amount of appropriate tax had been paid to the unit holder and the unit holder shall allow such deduction or, as the case may be, such appropriation or cancellation.
<[1]
[2]
Substituted by FA04 s29(1)(c)(i). This section applies as respects the appropriation or cancellation of a unit on or after 4 February 2004.
[3]
Deleted by FA04 s29(1)(c)(ii)(I). This section applies as respects the appropriation or cancellation of a unit on or after 4 February 2004.
[4]
Inserted by FA04 s29(1)(c)(ii)(II). This section applies as respects the appropriation or cancellation of a unit on or after 4 February 2004.
[5]
Inserted by FA06 s50(1)(c)(i). This section applies and has effect as respects any chargeable event occurring on or after 31 March 2006
[6]
Substituted by FA06 s50(1)(c)(ii). This section applies and has effect as respects any chargeable event occurring on or after 31 March 2006
[7]
Substituted by FA06 s50(1)(c)(iii)(I). This section applies and has effect as respects any chargeable event occurring on or after 31 March 2006
[8]
Inserted by FA06 s50(1)(c)(iii)(II). This section applies and has effect as respects any chargeable event occurring on or after 31 March 2006
[9]
Substituted by FA07 s40(1) and applies as respects (a) the occurrence of a chargeable event in relation to an investment undertaking (within the meaning of Chapter 1A of Part 27), (b) the receipt by a person of a payment in respect of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27), and (c) the disposal in whole or in part of a material interest in an offshore fund (within that meaning), on or after 20 February 2007.
[10]
Substituted by FA08 s39(1)(c)(i)(I)(A). Applies and has effect as respects any chargeable event (within the meaning of section 739B(1)) occurring on or after 13 March 08.
[11]
Substituted by FA08 s39(1)(c)(i)(I)(B). Applies and has effect as respects any chargeable event (within the meaning of section 739B(1)) occurring on or after 13 March 08.
[12]
Substituted by FA08 s39(1)(c)(i)(II)(A). Applies and has effect as respects any chargeable event (within the meaning of section 739B(1)) occurring on or after 13 March 08.
[13]
Deleted by FA08 s39(1)(c)(i)(II)(B). Applies and has effect as respects any chargeable event (within the meaning of section 739B(1)) occurring on or after 13 March 08.
[14]
Substituted by FA08 s39(1)(c)(ii). Applies and has effect as respects any chargeable event (within the meaning of section 739B(1)) occurring on or after 13 March 08.
[15]
Inserted by FA08 s39(1)(c)(iii). Applies and has effect as respects any chargeable event (within the meaning of section 739B(1)) occurring on or after 13 March 08.
[16]
Substituted by F(No.2)A08 s27(1)(c)(ii)(I)(A). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2009.
[17]
Substituted by F(No.2)A08 s27(1)(c)(ii)(I)(B). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2009.
[18]
Substituted by F(No.2)A08 s27(1)(c)(ii)(I)(C). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2009.
[19]
Substituted by F(No.2)A08 s27(1)(c)(ii)(II). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2009.
[20]
Substituted by FA09 s10(4)(b). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 8 April 2009.
[21]
Substituted by FA09 s10(4)(c). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 8 April 2009.
[22]
Substituted by FA09 s10(4)(d). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 8 April 2009.
[23]
Substituted by FA11 s31(4)(b)(i). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2011.
[24]
Substituted by FA11 s31(4)(b)(ii). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2011.
[25]
Substituted by FA11 s31(4)(b)(iii). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2011.
[26]
Substituted by FA12 s28(4)(b). Has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2012.
[27]
Substituted by FA12 s28(4)(c). Has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2012.
[28]
Substituted by FA12 s28(4)(d). Has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1) of the Principal Act) on or after 1 January 2012.
[30]
Substituted by FA13 s39(3)(a). Deemed to have come into force and takes effect on and from 1 January 2013.
[31]
Inserted by FA13 s39(3)(b). Deemed to have come into force and takes effect on and from 1 January 2013.
[32]
Substituted by FA13 s40(4)(b)(i). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1) of the Principal Act) on or after 1 January 2013.
[33]
Substituted by FA13 s40(4)(b)(ii). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1) of the Principal Act) on or after 1 January 2013.
[34]
Substituted by FA13 s40(4)(b)(iii). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1) of the Principal Act) on or after 1 January 2013.
[35]
Substituted by F(No.2)A13 s30(4)(b)(i). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2014.
[36]
Substituted by F(No.2)A13 s30(4)(b)(ii). Applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2014.