Finance Act, 2001

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Amendment of Schedule 24 (relief from income tax and corporation tax by means of credit in respect of foreign tax) to Principal Act.

41.—(1) Schedule 24 of the Principal Act is amended—

(a) in paragraph 3 by the substitution for “Credit shall not be allowed” of “Subject to paragraphs 9A, 9B and 9C, credit shall not be allowed”,

(b) in paragraph 4(4)(e) by the insertion after “644B” of “by any fraction”,

(c) in paragraph 9A—

(i) in subparagraph (3) by the substitution for “company resident in the State” of “company falling within subparagraph (3A)”,

(ii) by the insertion after subparagraph (3) of the following subparagraph:

“(3A) (a) A company falls within this subparagraph if—

(i) it is resident in the State, or

(ii) it is, by virtue of the law of a Member State of the European Communities other than the State, resident for the purposes of tax in such a Member State and the dividend referred to in subparagraph (3) forms part of the profits of a branch or agency of the company in the State.

(b) For the purposes of subparagraph (a)(ii), ‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State.”,

and

(iii) in subparagraph (4)(b) by the substitution for “company resident in the State” of “company falling within subparagraph (3A)”,

(d) in paragraph 9B—

(i) in subparagraph (1) by the substitution for “an Irish company” of “a company falling within subparagraph (1A) (in this paragraph referred to as the ‘relevant company’)”, and by the substitution for “the Irish company” of “the relevant company”,

(ii) by the insertion after subparagraph (1) of the following subparagraph:

“(1A) (a) A company falls within this subparagraph if—

(i) it is resident in the State, or

(ii) it is, by virtue of the law of a Member State of the European Communities other than the State, resident for the purposes of tax in such a Member State and the dividend referred to in subparagraph (1) forms part of the profits of a branch or agency of the company in the State.

(b) For the purposes of subparagraph (a)(ii), ‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State.”,

(iii) in subparagraphs (2) and (3) by the substitution for “the Irish company” of “the relevant company”,

(iv) in subparagraph (4) by the substitution for “an Irish company” of “a relevant company”, and

(v) in subparagraph (5) by the deletion of the definition of “Irish company”,

and

(e) by the insertion after paragraph 9B, but in Part 2, of the following:

“9C.—(1) In this paragraph—

‘relevant company’ means a company which—

(a) is not resident in the State,

(b) is, by virtue of the law of a Member State of the European Communities other than the State, resident for the purposes of tax in such a Member State, and

(c) carries on a trade in the State through a branch or agency,

and for the purposes of subparagraph (b) of this definition ‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State;

‘relevant tax’ means foreign tax paid in respect of the income or chargeable gains of a branch or agency in the State of a relevant company, other than such tax paid in a territory in which the company is liable to tax by reason of domicile, residence, place of management or other similar criterion.

(2) A relevant company shall, as respects an accounting period, be entitled to such relief under this Schedule in respect of relevant tax as would, if the branch or agency in the State had been a company resident in the State, have been given under any arrangements to that company resident in the State.”.

(2) This section applies as respects accounting periods ending on or after 15 February 2001.