Investments Under S. 481

Proposals for Investments under Section 481 TCA 1997: Advance Opinions

The purpose of this note is to clarify the circumstances in which Revenue will give an opinion in advance of a Section 481 Investment taking place and to bring the procedures in line with the general Revenue guidelines on advance opinions.

The Revenue guidelines envisage requests for an opinion on specific issues arising from a proposal. In such circumstances, Revenue is prepared to issue an opinion setting out their interpretation of the legal point at issue. The Revenue guidelines on advance opinions were included in Tax Briefing Issue 48. Where there is a concern in relation to interpretation of Section 481 in a specific circumstance, then Revenue will be prepared to issue an opinion on the issue on receipt of the information set out in these Guidelines.

Revenue is sometimes asked to give a general opinion that the Section 481 investment proposal would satisfy the requirements of the Section. It is not possible for Revenue to evaluate all aspects of an investment scheme before the investment is in place and all the facts are known. Any general opinions given have been qualified to such an extent as to render them meaningless. For this reason and to avoid any confusion for investors, opinions will, in future, be given only on specific aspects of a proposal as envisaged in the guidelines published in Tax Briefing.