Taxes Consolidation Act, 1997 (Number 39 of 1997)

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790D Imputed distribution from certain funds.(1) In this section—
“additional voluntary PRSA contributions” has the meaning assigned to it by section 787A(1);
“approved minimum retirement fund” has the meaning assigned to it by section 784C and for the purposes of this section the expression ‘AMRF’ shall be construed accordingly;
“approved retirement fund” has the meaning assigned to it by section 784A and for the purposes of this section the expression ‘ARF’ shall be construed accordingly;
“contributor” has the meaning assigned to it by section 787A;
“excluded distributions” means one or more of the following:
(a) a specified amount regarded as a distribution or the making available of PRSA assets under subsection (4);
(b) a payment, transfer or assignment of the assets of an ARF to another ARF the beneficial owner of the assets in which is the individual who is beneficially entitled to the assets in the first-mentioned ARF, whether or not the payment, transfer or assignment is made to the individual;
(c) a transaction regarded as a distribution for the purposes of section 784A by virtue of subsection (1A) of that section;
(d) a transfer referred to in section 784C(5)(a);
(e) assets made available from a PRSA, being assets of a kind referred to in section 787G(3);
(f) the circumstances set out in section 787G(4A) in which a PRSA administrator is treated as making assets of a PRSA available to an individual;
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(g) a distribution made for the purpose set out in section 784A(3A);
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(g) a distribution made for any of the purposes set out in section 784A(3A);
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“other manager”, in relation to an individual who has a relevant fund, means a person, other than the nominee, that is—
(a) a qualifying fund manager,
(b) a PRSA administrator, or
(c) both a qualifying fund manager and a PRSA administrator,
and which manages or administers, as the case may be, on the specified date—
(i) one or more than one ARF,
(ii) one or more than one vested PRSA, or
(iii) one or more than one ARF and one or more than one vested PRSA,
the assets in which are beneficially owned by the individual;
“Personal Retirement Savings Account” has the meaning assigned to it by section 787A and for the purposes of this section the expression ‘PRSA’ shall be construed accordingly;
“PRSA administrator” has the meaning assigned to it by section 787A;
“qualifying fund manager” has the meaning assigned to it by section 784A;
“relevant distributions”, in relation to an individual, means the aggregate of the amount or value of—
(a) the distributions, if any, made during the tax year by a qualifying fund manager in respect of assets held in—
(i) an ARF, or, as the case may be, ARFs the assets of which are beneficially owned by the individual and managed by that qualifying fund manager, and
(ii) an AMRF, if any, the assets of which are beneficially owned by the individual and managed by that qualifying fund manager, (in this paragraph referred to as the “funds”) being funds the assets in which were first accepted into the funds by the qualifying fund manager on or after 6 April 2000,
and
(b) the assets, if any, that a PRSA administrator makes available to, or pays to, the individual or to any other person during the tax year from one or more than one vested PRSA that is beneficially owned by that individual and administered by that PRSA administrator, less the aggregate of the amount or value of any excluded distributions made during the tax year in respect of assets which are beneficially owned by the individual;
“relevant fund” means all of the—
(a) ARFs, and
(b) vested PRSAs,
beneficially owned by the same individual on the specified date other than ARFs the assets in which were first accepted into the funds by the qualifying fund manager before 6 April 2000;
“specified amount”, for a tax year, means an amount equivalent to the amount determined by the formula—






(A × B)


100

– C


where the amount so determined is greater than zero and where—
A is the value (in this section referred to as the “relevant value”) of the assets in a relevant fund on the specified date, excluding, where appropriate, the value of assets retained by the PRSA administrator as would be required to be transferred to an AMRF if the beneficial owner of the PRSA had opted in accordance with section 787H(1),
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B is—
(i) 5, where the relevant value is not greater than €2,000,000, or
(ii) 6, where the relevant value is greater than €2,000,000,
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B  is—
(a) where the relevant value is not greater than €2,000,000—
(i) 4, where the individual is not aged 70 years or over for the whole of the tax year, or
(ii) 5, where the individual is aged 70 years or over for the whole of the tax year,
or
(b) 6, where the relevant value is greater than €2,000,000,
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and
C is the amount or value of relevant distributions, if any, made in the tax year;
“specified date” means 30 November in the tax year;
“tax year” means a year of assessment for income tax purposes;
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“vested PRSA” means—
(a) a PRSA in respect of which assets of the PRSA have been made available to, or paid to, the PRSA contributor or to any other person, by the PRSA administrator on or after 7 November 2002, other than assets of a kind referred to in paragraphs (b), (c) and (d) of section 787G(3), and for the purposes of this definition the provisions of subsections (4) and (4A) of section 787G shall apply, and
(b) in the case of a PRSA that is a PRSA to which an individual is or was the contributor of additional voluntary PRSA contributions, such a PRSA where benefits become payable to the individual under the main scheme on or after 7 November 2002.
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“vested PRSA” means—
(a) a PRSA in respect of which assets of the PRSA have been made available to, or paid to, the PRSA contributor or to any other person, by the PRSA administrator on or after 7 November 2002, other than assets of a kind referred to in paragraphs (b), (c) and (d) of section 787G(3), and for the purposes of this definition the provisions of subsections (4) and (4A) of section 787G shall apply,
(b) in the case of a PRSA that is a PRSA to which an individual is or was the contributor of additional voluntary PRSA contributions, such a PRSA where benefits become payable to the individual under the main scheme on or after 7 November 2002, or
(c) a PRSA in respect of which the PRSA contributor has attained the age of 75 years where, up to and including the date on which the contributor attained that age, no assets of the PRSA have been made available to, or paid to, the PRSA contributor or to any other person, other than a transfer of part of the assets to another PRSA to which the contributor to the first mentioned PRSA is the contributor;
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(1A) Where a PRSA contributor of a kind referred to in paragraph (c) of the definition of “vested PRSA” attains the age of 75 years in the circumstances referred to in that paragraph prior to the date of passing of the Finance Act 2016, the PRSA is deemed to become a vested PRSA on the date of passing of that Act.
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(2) For the purposes of this section, references to the value of an asset in a relevant fund shall, except where the asset is cash, be construed as a reference to the market value of the asset within the meaning of section 548.
(3) This section applies for any tax year in which an individual—
(a) has a relevant fund, and
(b) is aged 60 years or over for the whole of that tax year.
(4) Subject to the other provisions of this section, the specified amount shall for the purposes of subsections (3) and (7)(b) of section 784A or, as the case may be, subsections (1) and (2) of section 787G be regarded as—
(a) where the relevant fund comprises one or more than one ARF, a distribution of that amount from an ARF,
(b) where the relevant fund comprises one or more than one vested PRSA, the making available to, or paying to, the PRSA contributor of assets of that amount or value from a PRSA,
(c) where the relevant fund comprises one or more than one ARF and one or more than one vested PRSA and—
(i) the qualifying fund manager and the PRSA administrator of each ARF and of each PRSA concerned are the same person, a distribution of that amount from an ARF,
(ii) the nominee appointed in accordance with subsection (5) is a qualifying fund manager, a distribution of that amount from an ARF,
(iii) the nominee appointed in accordance with subsection (5) is a PRSA administrator, the making available to, or paying to, the PRSA contributor of assets of that amount or value from a PRSA, or
(iv) the nominee appointed in accordance with subsection (5) is both a qualifying fund manager and a PRSA administrator, a distribution of that amount from an ARF,
not later than the second month of the tax year following the tax year in respect of which the specified amount is determined.
(5) Where—
(a) an individual has a relevant fund and—
(i) the relevant value is €2,000,000 or less,
(ii) the relevant fund comprises—
(I) more than one ARF, or
(II) more than one vested PRSA, or
(III) one or more than one ARF and one or more than one vested PRSA,
and
(iii) in relation to each such relevant fund the qualifying fund manager of each ARF concerned and the PRSA administrator of each vested PRSA concerned are not the same person,
or
(b) where an individual has a relevant fund and the relevant value is greater than €2,000,000 and subparagraphs (ii) and (iii) of subsection (a) apply,
then the individual referred to in paragraph (a) may, and the individual referred to in paragraph (b) shall, appoint one of those persons (in this section referred to as the “nominee”) for the purposes of this section.
(6) Where an individual appoints a nominee in accordance with subsection (5) the individual shall—
(i) inform the other manager or the other managers, as the case may be, of such appointment for the purposes of this section,
(ii) where the appointment under subsection (5) is compulsory, advise the other manager or the other managers, as the case may be, of that fact, and
(iii) provide the other manager or the other managers, as the case may be, with the full name, address and telephone number of the nominee.
(7) Where an individual appoints a nominee in accordance with subsection (5)—
(a) the other manager or the other managers, as the case may be, shall within 14 days of the specified date provide the nominee with a certificate for that tax year stating the aggregate value (subject to paragraph (b)) of the assets on that date in, and the relevant distributions from—
(i) the ARF or ARFs, or
(ii) the vested PRSA or vested PRSAs, or
(iii) the ARF or ARFs and the vested PRSA or vested PRSAs,
managed or administered by the other manager or the other managers,
(b) the aggregate value of the assets referred to in paragraph (a) shall, where the assets are in one or more than one vested PRSA, exclude the value of such assets, if any, retained by the PRSA administrator as would be required to be transferred to an AMRF if the beneficial owner of the PRSA had opted in accordance with section 787H(1), and 
(c) the nominee shall keep and retain for a period of 6 years each certificate so provided and on being so required by notice given to the nominee in writing by an officer of the Revenue Commissioners, make available within the time specified in the notice such certificates as may be required by the notice.
(8) Where an individual appoints a nominee in accordance with subsection (5) and the nominee receives a certificate or, as the case may be, certificates provided in accordance with subsection (7)(a), from the other manager or from one or more of the other managers, the specified amount shall be determined by the nominee as if the value of the assets and the relevant distributions stated in each certificate so received were the value of assets in and relevant distributions from an ARF or a vested PRSA managed or administered by the nominee in that tax year.
(9) Where an individual appoints a nominee in accordance with subsection (5) in respect of a relevant fund of a kind referred to in paragraph (a) of that subsection and—
(a) the nominee does not receive a certificate referred to in subsection (7)(a) from the other manager, or
(b) the nominee does not receive a certificate referred to in subsection (7)(a)—
(i) from any of the other managers, or
(ii) from any one or more of the other managers, but not all of them,
then—
(I) where paragraph (a) or (b)(i) applies, the nominee and the other manager or, as the case may be, the nominee and each of the other managers, and
(II) where paragraph (b)(ii) applies, each of the other managers in respect of which the nominee has not received a certificate,
(in this subsection referred to as the “relevant manager”) shall determine the specified amount in accordance with this section as if the relevant fund of the individual was comprised solely, as the case may be, of—
(A) the ARF or ARFs,
(B) the vested PRSA or vested PRSAs, or
(C) the ARF or ARFs and the vested PRSA or vested PRSAs,
managed or administered by the relevant manager.
(10) Where an individual appoints a nominee in accordance with subsection (5) in respect of a relevant fund of a kind referred to in paragraph (b) of that subsection and paragraph (a) or (b) of subsection (9) applies, the specified amount shall be determined in accordance with subsection (9) as if B in the formula for the specified amount was 6.
(11) Where an individual has a relevant fund of a kind referred to in subsection (5)(a) and the individual opts not to appoint a nominee as provided for in that subsection, then each person who on the specified date is—
(a) a qualifying fund manager,
(b) a PRSA administrator, or
(c) both a qualifying fund manager and a PRSA administrator,
of one or more than one ARF, one or more than one vested PRSA or, as the case may be, one or more than one ARF and one or more than one vested PRSA comprised in that relevant fund shall determine the specified amount in accordance with this section as if the relevant fund was comprised solely, as the case may be, of—
(i) the ARF or ARFs,
(ii) the vested PRSA or vested PRSAs, or
(iii) the ARF or ARFs and the vested PRSA or vested PRSAs, 
managed or administered by each such person.