|
|
Amendment of section 847 (tax relief for certain branch profits) of Principal Act.
|
48.— Section 847 of the Principal Act is amended—
|
|
| |
(a) in subsection (6) by substituting “any provision of the Corporation Tax Acts other than this section” for “any other provision of the Corporation Tax Acts”,
|
|
| |
(b) in subsection (9)(b) by substituting “For the purposes of this subsection and subsection (10), where” for “Where”, and
|
|
| |
(c) by inserting the following after subsection (9):
|
|
| |
“(10) (a) Notwithstanding subsection (9)(a), where, in any accounting period, a qualified company incurred a loss (in this subsection referred to as a ‘relevant loss’) on qualified foreign trading activities and that loss formed, or formed part of, the profits or gains or losses of the company which were disregarded for the purposes of the Corporation Tax Acts by virtue of subsection (6), then the company may claim relief under section 396(1) in accordance with this subsection in respect of that loss for accounting periods beginning on or after 1 January 2011.
|
|
| |
(b) For the purposes of a claim under paragraph (a) in respect of a relevant loss, the qualified foreign trading activities carried on by a qualified company through a branch or agency outside the State shall for all accounting periods be treated as a trade separate from all other activities carried on by the company and the company shall be treated as continuing to carry on that separate trade for so long as it continues to carry on those activities through that branch or agency and to permanently discontinue to carry on that trade when it ceases to carry on those activities through that branch or agency.
|
|
| |
(c) Where a qualified company makes a claim under paragraph (a) in respect of a relevant loss then, subject to paragraph (b), the company shall be entitled to such relief under section 396(1) for accounting periods beginning on or after 1 January 2011 as it would have been entitled to had the profits or gains or losses from qualified foreign trading activities carried on through the branch or agency not been disregarded for the purposes of the Corporation Tax Acts by virtue of subsection (6) and had relief been granted in respect of the relevant loss under section 396(1), but not any other provision of the Corporation Tax Acts, for accounting periods ending before that date.”.
|
