8 Capital goods and other equipment imported on transfer of activities

(1) Subject to paragraphs (2) to (4), tax shall not be charged on—

(a) machinery, plant or equipment imported by a person on cessation of his or her business activity abroad in order to carry on a similar activity within the State provided that the machinery, plant or equipment—

(i) has been used in his or her business for a period of at least 12 months or such shorter period as the Revenue Commissioners consider reasonable prior to the date on which the business ceased to operate in the country of departure,

(ii) is intended for the same purposes after transfer and are for use in the State in an agricultural activity or in an activity in respect of which he or she would be a taxable person in accordance with section 5 of the Act, and

(iii) is appropriate to the nature and size of the undertaking in question,

or

(b) livestock imported by a farmer on the transfer to the State of an activity carried on in an agricultural holding provided that—

(i) the livestock were owned by the farmer for at least 12 months or such shorter period as the Revenue Commissioners consider reasonable prior to the importation,

(ii) the livestock are intended to be used for farming after importation, and

(iii) the number of livestock is appropriate to the nature and size of the farming enterprise being undertaken by the person in the State.

(2) Paragraph (1) shall not apply to importations by persons established outside the State the transfer of whose business to the State is consequent upon or is for the purpose of merging with, or being absorbed by, a person or persons in the State in circumstances in which a new activity is not, or is not intended to be, commenced.

(3) Relief under this Regulation shall not apply to any of the following:

(a) the means of transport which are not used in the production process of the business concerned nor, in the case of a service business, used directly in the provision of the service;

(b) food supplies intended for human consumption or for animal feed;

(c) fuel and stocks of raw materials or finished or semi-finished products;

(d) livestock in the possession of dealers.

(4) Except in special cases justified by the circumstances, relief under this Regulation shall be granted only in respect of machinery, plant or equipment imported before the expiry of a period of 12 months from the date when the importer ceased his or her activities in the country of departure.

(5) Where the Revenue Commissioners are satisfied that there are special circumstances justifying relief, they may grant relief under this Regulation notwithstanding that the conditions specified in paragraph (1) or (2), as may be appropriate, are not complied with.