807C Supplementary provisions in relation to section 806 — apportionment in certain cases.

(1) In this section—

“appropriate exemption” means an exemption by virtue of subsection (8)(b) or (10)(b)(ii) of section 806;

“exempt year of assessment” means a year of assessment referred to in subsection (2)(b) in respect of which there was no earlier year of assessment where—

(a) the individual was liable to tax by virtue of section 806, or

(b) the individual would have been liable to tax by virtue of section 806 if there had been any deemed income of such individual under that section;

“relevant transactions” has the meaning assigned to it by section 806(10).

(2) This section applies where an individual is liable to income tax by virtue of section 806 for a year of assessment and—

(a) the individual is so liable by virtue of the conditions in section 806(10)(b)(ii) not being met,

(b) since the making of the transfer there have been one or more years of assessment where the circumstances were such that, so far as relating to such of the relevant transactions as were effected before the end of the year of assessment concerned, the individual—

(i) was not liable to tax by virtue of section 806 because an appropriate exemption applied, or

(ii) would not have been liable to tax by virtue of section 806 if there had been any deemed income of such individual under that section because an appropriate exemption would have applied,

and

(c) the income by reference to which the individual is so liable is attributable—

(i) partly to relevant transactions by reference to which the appropriate exemption applied for the last exempt year of assessment, and

(ii) partly to associated operations not falling within subparagraph (i) (in this section referred to as “chargeable operations”).

(3) Where this section applies, the liability of the individual shall be reduced as if it fell to be determined by reference to so much of the income ^[2]>as appears to the Revenue Commissioners, or such officer as the Revenue Commissioners may appoint, to be justly and reasonably attributable^<[2][2]>as is justly and reasonably attributable^<[2] to chargeable operations in all the circumstances of the case.

(4) The facts and matters that may be taken into account in determining for the purposes of subsection (3) whether income may be regarded as justly and reasonably attributable to chargeable operations include whether, and to what extent, the chargeable operations or any of them directly or indirectly affect—

(a) the character, description or amount of any income of any person,

(b) any person’s power to enjoy any income, or

(c) the character, description or amount of any income which a person has power to enjoy.