Finance Act, 1990
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Tax treatment of profits, losses and capital gains arising from activities of a grouping (EEIG). |
29.—(1) In this section “grouping” means a European Economic Interest Grouping formed upon the terms, in the manner and with the effects laid down in— | |
(a) Council Regulation (EEC) No. 2137/85 of 25 July 1985** on the European Economic Interest Groupings (EEIG), and | ||
(b) the European Communities (European Economic Interest Groupings) Regulations, 1989 ( S.I. No. 191 of 1989 ), | ||
and references to members of a grouping shall be construed accordingly. | ||
(2) Notwithstanding anything in the Tax Acts or in the Capital Gains Tax Acts, a grouping shall be neither— | ||
(a) charged to income tax, corporation tax or capital gains tax, as the case may be, in respect of profits or gains or chargeable gains arising to it, nor | ||
(b) entitled to relief for a loss sustained by it, | ||
and any assessment required to be made on such profits or gains or chargeable gains, and any relief for a loss, shall, as appropriate, be made on and allowed to the members of a grouping in accordance with the provisions of this section. | ||
(3) Section 2 (1) of the Capital Gains Tax Act, 1975 , is hereby amended by the substitution of the following definition for the definition of “company”— | ||
“‘company’ means any body corporate but does not include a grouping within the meaning of section 29 of the Finance Act, 1990;”. | ||
(4) Section 1 (5) of the Corporation Tax Act, 1976 , is hereby amended by the insertion in the definition of “company” of the following subparagraph after subparagraph (i)— | ||
“(iA) a grouping within the meaning of section 29 of the Finance Act, 1990,”. | ||
(5) The provisions of— | ||
(a) Chapter III of Part IV of the Income Tax Act, 1967 , other than section 72 (8) of that Act, and | ||
(b) section 4 (5) of, and paragraph 3 (5) of Schedule 4 to, the Capital Gains Tax Act, 1975 , | ||
shall apply, with any necessary modifications, to the activities of a grouping in the same manner as they apply to a trade or profession which is carried on by two or more persons in partnership. | ||
(6) In particular, but without prejudice to the generality of subsection (5), the provisions mentioned therein shall, in their application for the purposes of this section, have effect as if— | ||
(a) references to a partnership agreement were references to the contract forming or providing for the formation of a grouping, | ||
(b) references to a partner were references to a member of a grouping, and | ||
(c) anything done or required to be done by the precedent acting partner was done or required to be done by the grouping. | ||
(7) This section shall be deemed to have come into effect on the 1st day of July, 1989. | ||