ASSOCIATE WITH Taxes Consolidation Act 1997 s747B

Offshore Funds

The 2007 Form 11, Form CT 1, Form 1 and Form 1 (Firms)

Introduction

The purpose of this article is to provide clarification for practitioners in relation to the offshore funds sections of the Form 11, Form CT1, Form 1 and Form 1 (Firms). The matter has already been the subject of an eBrief in relation to the Form 11 and Form CT 1 (eBrief No. 4/2008).

Form 11

It has been drawn to Revenue’s attention that the heading on the line relating to Other Offshore Products (line 317 in the 2007 Form 11) may be open to misinterpretation in relation to the offshore funds in respect of which information is to be returned.

Line 317 is intended to pertain to offshore products other than offshore funds to which line 316 relates. Line 316 relates to what are referred to as ‘regulated offshore funds’ in the EU or EEA or in an OECD state with which Ireland has a double taxation treaty (an OECD treaty state). Chapter 4 of Part 27 of TCA 1997 and specifically Section 747B(2A) applies to these funds.

Line 317 relates to ‘Other Offshore Products’. The requirements here are governed by section 896(5) TCA 1997. The information required relates to offshore products which are -

• foreign life products in a state outside the EU or EEA or outside an OECD treaty state, i.e. “offshore products to which section 730I ... does not relate”,
• unregulated offshore funds in the EU or EEA or in an OECD treaty state and all offshore funds outside the EU or EEA or outside an OECD treaty state, i.e. “offshore products to which section ... 747C ...does not relate”.

Specifically, therefore, it should be noted that line 317 of the 2007 Form 11 requires a return of information in relation to two types of offshore funds acquired in 2007. It requires not only details of all such funds which are outside the EU or EEA or outside an OECD treaty state but also details of unregulated funds [those not coming within section 747B(2A)] acquired within the EU or EEA or within an OECD treaty state.

Form CT 1

Panel 6 of the Form CT 1 mirrors line 316 of the 2007 Form 11. Therefore, the comments above in relation to line 317 of the 2007 Form 11 apply equally to panel 29 of the CT 1 Form.

Form 1

This form is for use by trusts, estates under administration, etc. The section under the heading Offshore Funds, line 313 of the 2007 Form 1, mirrors line 316 of the 2007 Form 11. Therefore, the comments above in relation to line 317 of the 2007 Form 11 apply equally to the section under the heading Other Offshore Products, line 314, of the Form 1.

Form 1 (Firms)

This form is for use by partnerships. The relevant sections for 2007 are Offshore Funds, lines 410 - 413 and Other Offshore Products, lines 414 - 417. The heading in relation to lines 410 - 413, is slightly different from the corresponding line/section in the other forms. The offshore funds to be included at lines 410 - 413 are all offshore funds (regulated and unregulated) acquired in 2007 in the EU or EEA or in an OECD treaty state. All other offshore funds, namely, those acquired outside the EU or EEA or outside an OECD treaty state are to be included at lines 414 - 417.

Review of 2008 Forms

These matters will be reviewed in the context of the 2008 forms.