Finance Act, 1994

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Amendment of section 18 (taxation of collective investment undertakings) of Finance Act, 1989.

25.—(1) Section 18 of the Finance Act, 1989 , is hereby amended—

(a) in subsection (1)—

(i) in the definition of “collective investment undertaking” (inserted by section 19 of the Finance Act, 1991 ) by the deletion of “and” in paragraph (b) and by the insertion after paragraph (b) of the following paragraph—

“(bb) a limited partnership which—

(i) has as its principal business, as expressed in the partnership agreement establishing the limited partnership, the investment of its funds in property, and

(ii) has been authorised to carry on that business, under any enactment which provides for such authorisation, by the Central Bank of Ireland,

and where, in addition to being a collective investment undertaking, it is also a specified collective investment undertaking, and”,

(ii) in paragraph (b) (as inserted by section 19 of the Finance Act, 1991 ) of the definition of “specified collective investment undertaking” by the substitution for “or by” of “, a company referred to in subsection (1A) (inserted by the Finance Act, 1991 ) of section 35 of the Corporation Tax Act, 1976 , or”, and

(iii) by the substitution for the definition of “unit” of the following definition—

“‘unit’ includes any investment, such as a subscription for shares or a contribution of capital, in a collective investment undertaking, being an investment which entitles the investor—

(a) to a share of the investments or relevant profits of, or

(b) to receive a distribution from,

the collective investment undertaking;”,

(b) in subsection (4) by the insertion after “relevant payment”, where it first occurs in that subsection, of “made by a collective investment undertaking which is not a specified collective investment undertaking”, and

(c) by the insertion after subsection (11) of the following subsection:

“(11A) For the purposes of the Tax Acts, a unitholder, other than a qualifying management company, shall not be treated as carrying on a trade in the State, through a branch or agency or otherwise, where that unitholder would not be so treated if the unitholder did not hold any units in a specified collective investment undertaking.”.

(2) Subsection (1) (a) (i) shall not come into effect until such time as legislation governing the regulation of any class of limited partnerships by the Central Bank of Ireland is enacted and shall come into effect subject to such legislation and on such date as the Minister for Finance shall by order appoint.