Finance Act, 1996
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Connected persons. |
131.—(1) In this section— | |
“close company” has the same meaning as in sections 94 and 95 of the Corporation Tax Act, 1976 ; | ||
“company” has the same meaning as in section 1 (5) of the Corporation Tax Act, 1976 ; | ||
“control” shall be construed in accordance with section 102 of the Corporation Tax Act, 1976 ; | ||
“relative” means brother, sister, ancestor or lineal descendant: | ||
Provided that, for the purposes of the Capital Gains Tax Acts, it shall, in addition, mean uncle, aunt, niece or nephew; | ||
“settlement” includes any disposition, trust, covenant, agreement or arrangement, and any transfer of money or other property or of any right to money or other property; | ||
“settlor”, in relation to a settlement, means any person by whom the settlement was made; and a person shall be deemed for the purposes of this section to have made a settlement if the person has made or entered into the settlement directly or indirectly and, in particular (but without prejudice to the generality of the preceding words), if the person has provided or undertaken to provide funds directly or indirectly for the purpose of the settlement, or has made with any other person a reciprocal arrangement for that other person to make or enter into the settlement. | ||
(2) For the purposes of the Tax Acts and the Capital Gains Tax Acts, unless the context otherwise requires, any question whether a person is connected with another shall be determined in accordance with the provisions of subsections (3) to (8) (any provision that one person is connected with another being taken to mean that they are connected with one another). | ||
(3) A person is connected with an individual if that person is the individual's husband or wife, or is a relative, or the husband or wife of a relative, of the individual or of the individual's husband or wife. | ||
(4) A person, in his or her capacity as trustee of a settlement, is connected with— | ||
(a) any individual who in relation to the settlement is a settlor, | ||
(b) any person who is connected with such an individual, and | ||
(c) a body corporate which is deemed to be connected with that settlement, and a body corporate shall be deemed to be connected with a settlement in any accounting period or, as the case may be, year of assessment if, at any time in that period or year, as the case may be, it is a close company (or only not a close company because it is not resident in the State) and the participators then include the trustees of or a beneficiary under the settlement. | ||
(5) Except in relation to acquisitions or disposals of partnership assets pursuant to bona fide commercial arrangements, a person is connected with any person with whom he or she is in partnership, and with the husband or wife or a relative of any individual with whom he or she is in partnership. | ||
(6) A company is connected with another company— | ||
(a) if the same person has control of both, or a person has control of one and persons connected with him or her, or he or she and persons connected with him or her, have control of the other, or | ||
(b) if a group of two or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he or she is connected. | ||
(7) A company is connected with another person if that person has control of it or if that person and persons connected with him or her together have control of it. | ||
(8) Any two or more persons acting together to secure or exercise control of, or to acquire a holding in, a company shall be treated in relation to that company as connected with one another and with any person acting on the direction of any of them to secure or exercise control of, or to acquire a holding in, the company. | ||
(9) (a) All the provisions of the Tax Acts and the Capital Gains Tax Acts which, for the purpose of determining whether a person is connected with another, refer to or apply the provisions of section 16 (3) of the Finance (Miscellaneous Provisions) Act, 1968 , section 33 (7) of the Capital Gains Tax Act, 1975 , or section 157 of the Corporation Tax Act, 1976 , as appropriate, shall, notwithstanding paragraph (b), be construed for that purpose as referring to or applying the provisions of this section. | ||
(b) The said sections 16 (3), 33 (7) and 157 shall cease to apply and have effect. |