Finance Act 2010

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Amendment of Part 27 (unit trusts and offshore funds) of Principal Act.

31.— (1) Part 27 of the Principal Act is amended—

(a) in section 739B by substituting the following for the definition of “qualifying management company”:

“ ‘qualifying management company’, in relation to an investment undertaking, means a company which, in the course of a trade of managing investments, manages the whole or any part of the investments and other activities of the business of the undertaking;”,

(b) in section 739D, by inserting the following subsection after subsection (7A):

“(7B) (a) A gain shall not be treated as arising to an investment undertaking on the happening of a chargeable event in respect of a unit holder where, immediately before the chargeable event, the investment undertaking is in possession of written notice of approval from the Revenue Commissioners to the effect that subsection (7) is deemed to have been complied with in respect of the unit holder, and that approval has not been withdrawn.

(b) The Revenue Commissioners may give to an investment undertaking the approval, referred to in paragraph (a), that subsection (7) is deemed to have been complied with—

(i) as respects any unit holder or class of unit holder, and

(ii) subject to such conditions as they consider necessary so as to satisfy themselves that, at the time the approval is granted, appropriate equivalent measures have been put in place by the investment undertaking to ensure that unit holders in that investment undertaking are not resident or ordinarily resident in the State.

(c) (i) The Revenue Commissioners may by notice in writing withdraw any approval given under paragraph (b) if an investment undertaking has failed to comply with any of the conditions subject to which the approval was given.

(ii) Where approval is withdrawn in accordance with subparagraph (i), paragraph (a) shall not apply from such date, and in respect of such unit holder or class of unit holder, as may be specified in the notice.

(d) The Revenue Commissioners may nominate in writing an inspector or other officer to perform any acts and discharge any functions authorised by this subsection to be performed or discharged by the Revenue Commissioners.”,

and

(c) by inserting the following after section 747F:

“Chapter 5

Relevant UCITS

Tax treatment of relevant UCITS.

747G.— (1) In this section—

‘ management company ’, in relation to a relevant UCITS, means a management company within the meaning of the relevant Directives;

‘ relevant Directives ’ means Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 ² on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), and any Directive amending that Directive;

‘relevant profits’, in relation to a relevant UCITS, means the profits which would be relevant profits (within the meaning of section 739B) if the relevant UCITS were an investment undertaking (within the meaning of that section);

‘ relevant UCITS ’ means an undertaking for collective investment in transferable securities—

(i) to which the relevant Directives apply,

(ii) which is formed under the laws of any of the Member States of the European Union other than the State, and

(iii) (I) the management company of which is authorised under any laws of the State which implement the relevant Directives, and

(II) which, if the management company were not so authorised, would not be liable to tax in the State.

(2) Notwithstanding anything in the Tax Acts and the Capital Gains Tax Acts, a relevant UCITS shall not be chargeable to tax in respect of relevant profits.

(3) An interest in a relevant UCITS shall be treated for the purposes of this Part as an interest in a company, scheme or arrangement specified in section 743(1).”.

(2) This section comes into operation on the passing of this Act.

² OJ No. L302 of 17 November 2009, p.32