Finance Act, 2000

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Interpretation and application.

739B.—(1) In this Chapter and in Schedule 2B—

‘the Acts’ means the Tax Acts and the Capital Gains Tax Acts;

‘approved minimum retirement fund’ has the meaning assigned to it in section 784C;

‘approved retirement fund’ has the meaning assigned to it in section 784A;

‘chargeable event’, in relation to an investment undertaking in respect of a unit holder, means—

(a) the making of a relevant payment by the investment undertaking,

(b) the making of any other payment by the investment undertaking to a person, by virtue of that person being a unit holder (whether or not in respect of the cancellation, redemption or repurchase of a unit) other than a payment made on the death of a unit holder,

(c) the transfer by a unit holder, by way of sale or otherwise (other than as a result of the death of the unit holder), of entitlement to a unit in the investment undertaking, and

(d) a chargeable event shall be deemed to happen on 31 December 2000 in respect of all unit holders (if any) at that date in relation to an investment undertaking—

(i) which commenced on or after 1 April 2000, or

(ii) which was on 31 March 2000 a specified collective investment undertaking,

but does not include—

(A) any exchange of units in a sub-fund of an investment undertaking which is an umbrella scheme, for units in another sub-fund of that investment undertaking, and

(B) any transaction in relation to, or in respect of, units which are held in a recognised clearing system;

‘collective investor’, in relation to an authorised investment company (within the meaning of Part XIII of the Companies Act, 1990 ), means an investor, being a life assurance company, pension fund or other investor—

(a) who invests in securities or any other property whatever with moneys contributed by 50 or more persons—

(i) none of whom has at any time directly or indirectly contributed more than 5 per cent of such moneys, and

(ii) each of a majority of whom has contributed moneys to the investor with the intention of being entitled, otherwise than on death of any person or by reference to a risk of any kind to any person or property, to receive from the investor—

(I) a payment which, or

(II) payments the aggregate of which,

exceeds those moneys by a part of the profits or income arising to the investor,

and

(b) who invests in the authorised investment company primarily for the benefit of those persons;

‘distribution’ has the same meaning as in the Corporation Tax Acts;

‘intermediary’ means a person who—

(a) carries on a business which consists of, or includes, the receipt of payments from an investment undertaking on behalf of other persons, or

(b) holds units in an investment undertaking on behalf of other persons;

‘investment undertaking’ means—

(a) a unit trust scheme, other than—

(i) a unit trust mentioned in section 731(5)(a), or

(ii) a special investment scheme,

which is or is deemed to be an authorised unit trust scheme (within the meaning of the Unit Trusts Act, 1990 ) and has not had its authorisation under that Act revoked,

(b) any other undertaking which is an undertaking for collective investment in transferable securities within the meaning of the relevant Regulations, being an undertaking which holds an authorisation, which has not been revoked, issued pursuant to the relevant Regulations,

(c) any authorised investment company (within the meaning of Part XIII of the Companies Act, 1990 )—

(i) which has not had its authorisation under that Part of that Act revoked, and

(ii)  (I) which has been designated in that authorisation as an investment company which may raise capital by promoting the sale of its shares to the public and has not ceased to be so designated, or

(II) each of the shareholders of which is a collective investor,

and

(d) an investment limited partnership (within the meaning of the Investment Limited Partnerships Act, 1994 ),

which is not an offshore fund (within the meaning of section 743); but includes any company limited by shares or guarantee which—

(A) is wholly owned by such an investment undertaking or its trustees, if any, for the benefit of the holders of units in that undertaking, and

(B) is so owned solely for the purpose of limiting the liability of that undertaking or its trustees, as the case may be, in respect of futures contracts, options contracts or other financial instruments with similar risk characteristics, by enabling it or its trustees, as the case may be, to invest or deal in such investments through the company,

which is not an offshore fund (within the meaning of section 743);

‘pension scheme’ means an exempt approved scheme within the meaning of section 774 or a retirement annuity contract or a trust scheme to which section 784 or 785 applies;

‘qualifying fund manager’ has the meaning assigned to it in section 784A;

‘qualifying management company’ has the meaning assigned to it in section 734(1);

‘recognised clearing system’ means any system for clearing units which is for the time being designated for the purposes of this Chapter by order of the Revenue Commissioners as a recognised clearing system;

‘relevant gains’, in relation to an investment undertaking, means gains accruing to the investment undertaking, being gains which would constitute chargeable gains in the hands of a person resident in the State including gains which would so constitute chargeable gains if all assets concerned were chargeable assets and no exemption from capital gains tax applied;

‘relevant income’, in relation to an investment undertaking, means any amounts of income, profits or gains which arise to or are receivable by the investment undertaking, being amounts of income, profits or gains—

(a) which are or are to be paid to unit holders as relevant payments,

(b) out of which relevant payments are or are to be made to unit holders, or

(c) which are or are to be accumulated for the benefit of, or invested for the benefit of, unit holders,

and which if they arose to an individual resident in the State would in the hands of the individual constitute income for the purposes of income tax;

‘relevant payment’ means a payment including a distribution made to a unit holder by an investment undertaking by reason of rights conferred on the unit holder as a result of holding a unit or units in the investment undertaking, where such payments are made annually or at more frequent intervals, other than a payment made in respect of the cancellation, redemption or repurchase of a unit;

‘relevant profits’, in relation to an investment undertaking, means the relevant income and relevant gains of the investment undertaking;

‘relevant Regulations’ means the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 ( S.I. No. 78 of 1989 );

‘return’ means a return under section 739F;

‘specified collective investment undertaking’ and ‘specified company’ have, respectively, the meanings assigned to them in section 734(1);

‘special investment scheme’ has the same meaning as in section 737;

‘standard rate’ has the same meaning as in section 3(1);

‘umbrella scheme’ means an investment undertaking—

(a) which is divided into a number of sub-funds, and

(b) in which the unit holders are entitled to exchange units in one sub-fund for units in another;

‘unit’ includes any investment made by a unit holder, such as a subscription for shares or a contribution of capital, in an 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 relevant payment from,

the investment undertaking;

‘unit holder’, in relation to an investment undertaking, means any person who by reason of the holding of a unit, or under the terms of a unit, in the investment undertaking is entitled to a share of any of the investments or relevant profits of, or to receive a relevant payment from, the investment undertaking.

(2) For the purposes of this Chapter, Schedule 2B and section 904D, references to an investment undertaking (other than in this subsection) shall be construed so as to include a reference to a trustee, management company or other such person who—

(a) is authorised to act on behalf, or for the purposes, of the investment undertaking, and

(b) habitually does so,

to the extent that such construction brings into account for the purposes of this Chapter, Schedule 2B and section 904D any matter relating to the investment undertaking, being a matter which would not otherwise be brought into account for those purposes; but such construction shall not render the trustee, management company or other such person liable in a personal capacity to any tax imposed by this Chapter on an investment undertaking.

(3) This Chapter applies to an investment undertaking and the unit holders in relation to that investment undertaking where the investment undertaking—

(a) is on 31 March 2000 a specified collective investment undertaking, from 1 April 2000, or

(b) first issued units on or after 1 April 2000, from the day of such first issue.

(4) Where this Chapter applies to an investment undertaking, sections 734, 738 and 739 shall not apply to that investment undertaking or to unit holders in relation to that investment undertaking.

(5) Schedule 2B has effect for the purposes of supplementing this Chapter.

(6) For the purposes of this Chapter and Schedule 2B, where a holder of units in an investment undertaking is—

(a) an investment undertaking

(b) a special investment scheme, or

(c) a unit trust to which section 731(5)(a) applies,

the unit holder shall be treated as being entitled to the units so held.

Charge to tax.

739C.—(1) Notwithstanding anything in the Acts, an investment undertaking to which this Chapter applies shall not be chargeable to tax in respect of relevant profits otherwise than to the extent provided for in this Chapter.

(2) Notwithstanding Chapter 4 of Part 8, that Chapter shall apply to a deposit (within the meaning of that Chapter) to which an investment undertaking is for the time being entitled as if such deposit were not a relevant deposit within the meaning of that Chapter.

Gain arising on a chargeable event.

739D.—(1) In this Chapter—

(a) references to a chargeable event in relation to an investment undertaking in respect of a unit holder are, where the investment undertaking is an umbrella fund, references to a chargeable event in relation to each sub-fund of the umbrella fund in respect of a unit holder in that sub-fund, as if the sub-fund were the investment undertaking,

(b) references to an amount invested by a unit holder in an investment undertaking for the acquisition of a unit (in this paragraph referred to as the ‘original unit’), where the original unit is a unit in a sub-fund of an umbrella scheme and the original unit has been exchanged for a unit or units of another sub-fund of the umbrella scheme, are references to the amount invested by the unit holder for the acquisition of the original unit, and

(c) references to an amount invested by a unit holder in an investment undertaking for the acquisition of a unit shall, where the investment undertaking was on 31 March 2000 a specified collective investment undertaking and the unit was at that time a unit (within the meaning of section 734(1)) held by the unit holder as a unit holder (within the meaning of the said section) in relation to the specified collective investment undertaking, be references to the amount invested by the unit holder for the acquisition of the unit (within the said meaning) of the specified collective investment undertaking, or where that unit was otherwise acquired by the unit holder, the value of that unit at its date of acquisition by the unit holder.

(2) On the happening of a chargeable event in relation to an investment undertaking in respect of a unit holder, there shall, subject to this section, be treated as arising to the investment undertaking a gain in the amount of—

(a) where the chargeable event is the making of a relevant payment, the amount of the relevant payment,

(b) where the chargeable event is the making of any other payment by the investment undertaking to a person, by virtue of that person being a unit holder, otherwise than on the cancellation, redemption or repurchase of a unit, the amount of the payment,

(c) where the chargeable event is the making of a payment by the investment undertaking to a unit holder, on the cancellation, redemption or repurchase of a unit—

(i) the amount determined under subsection (3), or

(ii) where the investment undertaking has made an election under subsection (5), the amount of the payment reduced by the amount invested by the unit holder in the investment undertaking in acquiring the unit, and where the unit was otherwise acquired by the unit holder, the amount so invested shall be the value of the unit at the time of its acquisition by the unit holder,

(d) where the chargeable event is the transfer by a unit holder of entitlement to a unit,

(i) the amount determined under subsection (4), or

(ii) where the investment undertaking has made an election under subsection (5), the value of the unit transferred at the time of transfer reduced by the amount invested by the unit holder in the investment undertaking in acquiring the unit, and where the unit was otherwise acquired by the unit holder, the amount so invested shall be the value of the unit at the time of its acquisition by the unit holder, and

(e) where the chargeable event is deemed to happen on 31 December 2000, the excess (if any) of the value of the units held by the unit holder on that day over the total amount invested in the investment undertaking by the unit holder for the acquisition of the units, and where any unit was otherwise acquired by the unit holder, the amount so invested to acquire that unit shall be the value of the unit at the time of its acquisition by the unit holder.

(3) The amount referred to in subsection (2)(c) is the amount determined by the formula—

P —

N2

where—

P is the amount in money or money's worth payable to the unit holder on the cancellation, redemption or repurchase of units, without having regard to any amount of appropriate tax (within the meaning of section 739E) thereby arising,

C is the total amount invested by the unit holder in the investment undertaking to acquire the units held by the unit holder immediately before the chargeable event and—

(a) where any unit was otherwise acquired by the unit holder, or

(b) where a chargeable event was deemed to happen on 31 December 2000 in respect of the unit holder of that unit,

the amount so invested to acquire the unit is—

(i) where paragraph (a) applies, the value of the unit at the time of its acquisition by the unit holder, and

(ii) where paragraph (b) applies, the value of the unit on 31 December 2000, without having regard to any amount of appropriate tax (within the meaning of section 739E) thereby arising,

N1 is the number of units being cancelled, redeemed or, as the case may be, repurchased on the happening of the chargeable event, and

N2 is the total number of units held by the unit holder immediately before the chargeable event.

(4) The amount referred to in subsection (2)(d) is the amount determined by the formula—

V —

N2

where—

V is the value of the units transferred, at the time of transfer, without having regard to any amount of appropriate tax (within the meaning of section 739E) thereby arising,

C is the total amount invested by the unit holder in the investment undertaking to acquire the units held by the unit holder immediately before the chargeable event and—

(a) where any unit was otherwise acquired by the unit holder, or

(b) where a chargeable event was deemed to happen on 31 December 2000 in respect of the unit holder of that unit,

the amount so invested to acquire the unit is—

(i) where paragraph (a) applies, the value of the unit at the time of its acquisition by the unit holder, and

(ii) where paragraph (b) applies, the value of the unit on 31 December 2000, without having regard to any amount of appropriate tax (within the meaning of section 739E) thereby arising,

N1 is the number of units transferred on the happening of the chargeable event, and

N2 is the total number of units held by the unit holder immediately before the chargeable event.

(5) The election referred to in paragraphs (c) and (d) of subsection (2) is an irrevocable election made by an investment undertaking—

(a) at the time it is set up or commenced, or

(b) where the investment undertaking was on 31 March 2000 a specified collective investment undertaking, on 1 April 2000,

in respect of all its unit holders at that time or any future time, so that, for the purposes of identifying units acquired with units subsequently disposed of by a unit holder, units acquired at an earlier time are deemed to have been disposed of before units acquired at a later time.

(6) 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 unit holder—

(a) is a pension scheme which has made a declaration to the investment undertaking in accordance with paragraph 2 of Schedule 2B,

(b) is a company carrying on life business within the meaning of section 706, and which company has made a declaration to the investment undertaking in accordance with paragraph 3 of Schedule 2B,

(c) is another investment undertaking which has made a declaration to the investment undertaking in accordance with paragraph 4 of Schedule 2B,

(d) is a special investment scheme which has made a declaration to the investment undertaking in accordance with paragraph 5 of Schedule 2B,

(e) is a unit trust to which section 731(5)(a) applies, and the unit trust has made a declaration to the investment undertaking in accordance with paragraph 6 of Schedule 2B,

(f) is a person who—

(i) is entitled to exemption from income tax by virtue of section 207(1)(b), and

(ii) has made a declaration to the investment undertaking in accordance with paragraph 7 of Schedule 2B,

(g) is a qualifying management company or a specified company and has made a declaration to the investment undertaking in accordance with paragraph 8 of Schedule 2B, or

(h) is a person who is entitled to exemption from income tax and capital gains tax by virtue of section 784A(2) (as amended by the Finance Act, 2000) and the units held are assets of an approved retirement fund or an approved minimum retirement fund and the qualifying fund manager has made a declaration to the investment undertaking in accordance with paragraph 9 of Schedule 2B,

and the investment undertaking is in the possession of the declaration immediately before the chargeable event.

(7) Subject to subsection (8), 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—

(a) is in possession of a declaration of a kind referred to in—

(i) paragraph 10 of Schedule 2B, or

(ii) where the unit holder is not a company, paragraph 11 of that Schedule, and

(b) is not in possession of any information which would reasonably suggest that—

(i) the information contained in that declaration is not, or is no longer, materially correct,

(ii) the unit holder failed to comply with the undertaking referred to in paragraph 10(g) or 11(f), as the case may be, of Schedule 2B, or

(iii) immediately before the chargeable event the unit holder is resident or ordinarily resident in the State.

(8) (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—

(i) the investment undertaking was on 31 March 2000 a specified collective investment undertaking and the unit holder was a unit holder (within the meaning of section 734(1)) in relation to that specified collective investment undertaking at that time, and

(ii) the investment undertaking on or before 30 June 2000 makes to the Collector-General a declaration in accordance with paragraph 12 of Schedule 2B,

otherwise than, subject to paragraph (b), in respect of a unit holder (in this subsection and in section 739G referred to as an ‘excepted unit holder’)—

(A) whose name is included in the schedule to the declaration by virtue of paragraph 12(d) of Schedule 2B, and

(B) who has not made a declaration of a kind referred to in subsection (6) to the investment undertaking.

(b) A gain shall not be treated as arising to an investment undertaking on the happening of a chargeable event in respect of an excepted unit holder where the chargeable event is deemed to happen on 31 December 2000.

(9) 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 who is an intermediary, where immediately before the chargeable event the investment undertaking—

(a) is in possession of a declaration of a kind referred to in paragraph 13 of Schedule 2B, and

(b) is not in possession of any information which would reasonably suggest that—

(i) the information contained in that declaration is not, or is no longer, materially correct,

(ii) the intermediary failed to comply with the undertaking referred to in paragraph 13(e) of Schedule 2B, or

(iii) any of the persons, on whose behalf the intermediary holds units of, or receives payments from, the investment undertaking, is resident or ordinarily resident in the State.

(10) An investment undertaking shall keep and retain declarations made to it in accordance with Schedule 2B for a period of 6 years from the time the unit holder of the units in respect of which a declaration was made, ceases to be such a unit holder.

Deduction of tax on the occurrence of a chargeable event.

739E.—(1) In this section and sections 739F and 739G, ‘appropriate tax’, in connection with a chargeable event in relation to an investment undertaking in respect of a unit holder, means a sum representing income tax on the amount of the gain arising to an investment undertaking—

(a) where the amount of the gain is provided by section 739D(2)(a), at the standard rate for the year of assessment in which the gain arises,

(b) where the chargeable event happens on or after 1 January 2001 and the amount of the gain is provided by paragraph (b), (c) or (d) of section 739D(2), at a rate determined by the formula—

(S + 3) per cent,

where S is the standard rate per cent (within the meaning of section 4), and

(c) where the chargeable event happens in the period commencing on 1 April 2000 and ending on 31 December 2000 and the amount of the gain is provided by paragraph (b), (c), (d) or (e) of section 739D(2), at a rate of 40 per cent.

(2) An investment undertaking shall account for the appropriate tax in connection with a chargeable event in relation to a unit holder in accordance with section 739F.

(3) An investment undertaking which is liable to account for appropriate tax in connection with a chargeable event in relation to a unit holder shall, at the time of the chargeable event, where the chargeable event is—

(a) the making of a payment to a unit holder, be entitled to deduct from the payment an amount equal to the appropriate tax,

(b)   (i) the transfer by a unit holder of entitlement to a unit, or

(ii) deemed to happen on 31 December 2000,

be entitled to appropriate or cancel such units of the unit holder as are required to meet the amount of appropriate tax,

and the investment undertaking shall be acquired and discharged of such deduction or, as the case may be, such appropriation or cancellation as if the amount of appropriate tax had been paid to the unit holder and the unit holder shall allow such deduction or, as the case may be, such appropriation or cancellation.

Returns and collection of appropriate tax.

739F.—(1) Notwithstanding any other provision of the Tax Acts, this section shall apply for the purposes of regulating the time and manner in which appropriate tax in connection with a chargeable event in relation to a unit holder shall be accounted for and paid.

(2) An investment undertaking shall for each financial year make to the Collector-General—

(a) a return of the appropriate tax in connection with chargeable events happening on or prior to 30 June, within 30 days of that date, and

(b) a return of appropriate tax in connection with chargeable events happening between 1 July and 31 December, within 30 days of that later date,

and where it is the case, the return shall specify that there is no appropriate tax for the period in question.

(3) The appropriate tax in connection with a chargeable event which is required to be included in a return shall be due at the time by which the return is to be made and shall be paid by the investment undertaking to the Collector-General, and the appropriate tax so due shall be payable by the investment undertaking without the making of an assessment; but appropriate tax which has become so due may be assessed on the investment undertaking (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.

(4) Where it appears to the inspector that there is an amount of appropriate tax in relation to a chargeable event which ought to have been but has not been included in a return, or where the inspector is dissatisfied with any return, the inspector may make an assessment on the investment undertaking to the best of his or her judgement, and any amount of appropriate tax in connection with a chargeable event due under an assessment made by virtue of this subsection shall be treated for the purposes of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.

(5) Where any item has been incorrectly included in a return as appropriate tax, the inspector may make such assessments, adjustments or set-offs as may in his or her judgement be required for securing that the resulting liabilities to tax, including interest on unpaid tax, whether of the investment undertaking making the return or of any other person, are in so far as possible the same as they would have been if the item had not been included.

(6) (a) Any appropriate tax assessed on an investment undertaking shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under subsection (3)) subject to any appeal against the assessment, but no appeal shall affect the date when any amount is due under subsection (3).

(b) On determination of the appeal against an assessment under this Chapter, any appropriate tax over-paid shall be repaid.

(7) (a) The provisions of the Income Tax Acts relating to—

(i) assessments to income tax,

(ii) appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and

(iii) the collection and recovery of income tax,

shall, in so far as they are applicable, apply to the assessment, collection and recovery of appropriate tax.

(b)  Any amount of appropriate tax shall carry interest at the rate of 1 per cent for each month or part of a month from the date when the amount becomes due and payable until payment.

(c)  Subsections (2) and (4) of section 1080 shall apply in relation to interest payable under paragraph (b) as they apply in relation to interest payable under section 1080.

(d)  In its application to any appropriate tax charged by any assessment made in accordance with this Chapter section 1080 shall apply as if subsection (1)(b) of that section were deleted.

(8) Every return shall be in a form prescribed by the Revenue Commissioners and shall include a declaration to the effect that the return is correct and complete.

Taxation of unit holders in investment undertakings.

739G.—(1) Where a chargeable event in relation to an investment undertaking in respect of a unit holder is deemed to happen on 31 December 2000 and the unit holder is an excepted unit holder referred to in section 739D(8), the unit holder shall be treated for all the purposes of the Capital Gains Tax Acts as if the amount of the gain which, but for section 739D(8)(b), would have arisen to the investment undertaking on the happening of the chargeable event, were a chargeable gain accruing to the unit holder at that time and notwithstanding section 28, the rate of capital gains tax in respect of that chargeable gain shall be 40 per cent.

(2) As respects a payment in money or money's worth to a unit holder by reason of rights conferred on the unit holder as a result of holding units in an investment undertaking to which this Chapter applies—

(a) where the unit holder is not a company and the payment is a payment from which appropriate tax has been deducted, the payment shall not be reckoned in computing the total income of the unit holder for the purposes of the Income Tax Acts and shall not be treated as giving rise to a chargeable gain under the Capital Gains Tax Acts,

(b) where the unit holder is not a company and the payment is a payment from which appropriate tax has not been deducted, the amount of the payment shall be treated for the purposes of the Tax Acts as income arising to the unit holder, constituting profits or gains chargeable to tax under Case IV of Schedule D.

(c) where the unit holder is a company, the payment is a relevant payment and appropriate tax has been deducted from the payment, the amount received by the unit holder shall, subject to paragraph (g), be treated for the purposes of the Tax Acts as the net amount of an annual payment chargeable to tax under Case IV of Schedule D from the gross amount of which income tax has been deducted at the standard rate,

(d) where the unit holder is a company, the payment is a relevant payment and appropriate tax has not been deducted from the payment, the amount of the payment shall, subject to paragraph (g), be treated for the purposes of the Tax Acts as income arising to the unit holder, constituting profits or gains chargeable to tax under Case IV of Schedule D,

(e) where the unit holder is a company, the payment is not a relevant payment and appropriate tax has been deducted therefrom, such payment shall, subject to paragraph (g), not be taken into account for the purposes of the Tax Acts,

(f) where the unit holder is a company, the payment is not a relevant payment and appropriate tax has not been deducted from the payment, the amount of such payment shall, subject to paragraph (g), be treated for the purposes of the Tax Acts as income arising to the unit holder, constituting profits or gains chargeable to tax under Case IV of Schedule D,

(g) where the unit holder is a company chargeable to tax on the payment under Case I of Schedule D—

(i) subject to subparagraph (ii), the amount received by the unit holder increased by the amount (if any) of appropriate tax deducted shall be income of the unit holder for the chargeable period in which the payment is made,

(ii) where the payment is made on the cancellation, redemption or repurchase of units by the investment undertaking, such income shall be reduced by the amount of the consideration in money or money's worth given by the unit holder for the acquisition of those units, and

(iii) the amount (if any) of appropriate tax deducted shall be set off against corporation tax assessable on the unit holder for the chargeable period in which the payment is made,

(h) the amount of a payment made to a unit holder by an investment undertaking, where the unit holder is a company which is not resident in the State or the unit holder, not being a company, is neither resident not ordinarily resident in the State, shall not be chargeable to income tax, and

(i) no repayment of appropriate tax shall be made to any person who is not a company within the charge to corporation tax.

Investment undertakings: reconstructions and amalgamations.

739H.—(1) In this section—

‘exchange’, in relation to a scheme of reconstruction or amalgamation, means the issue of units (in this section referred to as ‘new units’) by an investment undertaking (in this section referred to as the ‘new undertaking’) to the unit holders of another investment undertaking (in this section referred to as the ‘old undertaking’) in respect of and in proportion to (or as nearly as may be in proportion to) their holdings of units (in this section referred to as ‘old units’) in the old undertaking in exchange for the transfer by the old undertaking of all its assets and liabilities to the new undertaking where the exchange is entered into for the purposes of or in connection with a scheme of reconstruction or amalgamation;

‘scheme of reconstruction or amalgamation’ means a scheme for the reconstruction of any investment undertaking or investment undertakings or the amalgamation of any 2 or more investment undertakings.

(2) The cancellation of old units arising from an exchange in relation to a scheme of reconstruction or amalgamation shall not be a chargeable event and the amount invested by a unit holder for the acquisition of the new units shall for the purposes of this Chapter be the amount invested by the unit holder for the acquisition of the old units.”,

and

“Section 739D.

SCHEDULE 2B

INVESTMENT UNDERTAKINGS: DECLARATIONS

Interpretation

1. In this Schedule—

‘appropriate person’, in relation to a pension scheme, means—

(a) in the case of an exempt approved scheme (within the meaning of section 774), the administrator (within the meaning of section 770) of the scheme,

(b) in the case of a retirement annuity contract to which section 784 or 785 applies, the person lawfully carrying on in the State the business of granting annuities on human life with whom the contract is made, and

(c) in the case of a trust scheme to which section 784 or 785 applies, the trustees of the trust scheme;

‘tax reference number’, in relation to a person, has the meaning assigned to it by section 885 in relation to a specified person within the meaning of that section.

Declarations of pension schemes

2. The declaration referred to in section 739D(6)(a) is a declaration in writing to the investment undertaking which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time when the declaration is made, the person entitled to the units is a pension scheme,

(e) contains the name and tax reference number of the pension scheme,

(f) contains a certificate by the appropriate person in relation to the pension scheme that, to the best of that person's knowledge and belief, the declaration made in accordance with subparagraph (d) and the information furnished in accordance with subparagraph (e) are true and correct, and

(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.

Declaration of company carrying on life business

3. The declaration referred to in section 739D(6)(b) is a declaration in writing to the investment undertaking which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time when the declaration is made, the person entitled to the units is a company carrying on life business within the meaning of section 706,

(e) contains the name and tax reference number of the company, and

(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.

Declarations of investment undertakings

4. The declaration referred to in section 739D(6)(c) is a declaration in writing to the investment undertaking which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time the declaration is made, the person entitled to the units is an investment undertaking,

(e) contains the name and tax reference number of the investment undertaking, and

(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.

Declarations of special investment scheme

5. The declaration referred to in section 739D(6)(d) is a declaration in writing to the investment undertaking which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time the declaration is made, the person entitled to the units is a special investment scheme,

(e) contains the name and tax reference number of the special investment scheme, and

(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.

Declarations of unit trust

6. The declaration referred to in section 739D(6)(e) is a declaration in writing to the investment undertaking which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time the declaration is made, the person entitled to the units is a unit trust to which section 731(5)(a) applies,

(e) contains the name and tax reference number of the unit trust, and

(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.

Declaration of charity

7. The declaration referred to in section 739D(6)(f) is a declaration in writing to the investment undertaking which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the undertaking is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time when the declaration is made, the person entitled to the units is a person referred to in section 739D(6)(f)(i),

(e) contains the name and address of that person,

(f) contains a statement that at the time when the declaration is made the units in respect of which the declaration is made are held for charitable purposes only and—

(i) form part of the assets of a body of persons or trust treated by the Revenue Commissioners as a body or trust established for charitable purposes only, or

(ii) are, according to the rules or regulations established by statute, charter, decree, deed of trust or will, held for charitable purposes only and are so treated by the Revenue Commissioners,

(g) contains an undertaking by the declarer that if the person mentioned in subparagraph (d) ceases to be a person referred to in section 739D(6)(f)(i), the declarer will notify the investment undertaking accordingly, and

(h) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.

Declaration of qualifying management company and specified company

8. The declaration referred to in section 739D(6)(g) is a declaration in writing to the investment undertaking which—

(a) is made by a person (in this paragraph referred to as the ‘declarer’) who is entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time the declaration is made, the person entitled to the units is a qualifying management company or, as the case may be, a specified company,

(e) contains the name and tax reference number of the declarer, and

(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.

Declaration of qualifying fund manager

9. The declaration referred to in section 739D(6)(h) is a declaration in writing to the investment undertaking which—

(a) is made by a qualifying fund manager (in this paragraph referred to as the ‘declarer’) in respect of units which are assets in an approved retirement fund or, as the case may be, an approved minimum retirement fund,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time when the declaration is made, the units in respect of which the declaration is made—

(i) are assets of an approved retirement fund or, as the case may be, an approved minimum retirement fund, and

(ii) are managed by the declarer for the individual who is beneficially entitled to the units,

(e) contains the name, address and tax reference number of the individual referred to in subparagraph (d),

(f) contains an undertaking by the declarer that if the units cease to be assets of the approved retirement fund or, as the case may be, the approved minimum retirement fund, including a case where the units are transferred to another such fund, the declarer will notify the investment undertaking accordingly, and

(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.

Declarations of non-resident on acquisition of units

10. The declaration referred to in section 739(D)(7)(a)(i) is a declaration in writing to the investment undertaking which—

(a) is made by a person (in this paragraph referred to as the ‘declarer’) who is entitled to the units in respect of which the declaration is made,

(b) is made on or about the time when the units are applied for or acquired by the declarer,

(c) is signed by the declarer,

(d) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(e) declares that, at the time the declaration is made, the declarer is not resident in the State,

(f) contains the name and address of the declarer,

(g) contains an undertaking by the declarer that if the declarer becomes resident in the State, the declarer will notify the investment undertaking accordingly, and

(h) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.

Declaration of non-corporate person

11. The declaration referred to in section 739D(7)(a)(ii) is a declaration in writing to the investment undertaking which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) who is entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that the declarer, at the time the declaration is made, is neither resident nor ordinarily resident in the State,

(e) contains the name and address of the declarer,

(f) contains an undertaking by the declarer that if the declarer becomes resident in the State, the declarer will notify the investment undertaking accordingly, and

(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.

Declaration to Collector-General

12. The declaration referred to in section 739D(8)(a) is a declaration in writing to the Collector-General which—

(a) is made and signed by the investment undertaking,

(b) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(c) contains the name, address and tax reference number of the investment undertaking,

(d) declarer that, to the best of the investment undertaking's knowledge and belief, no units in the investment undertaking were held on 1 April 2000 by a person who was resident in the State at that time, other than such persons whose names and addresses are set out on the schedule to the declaration, and

(e) contains a schedule which sets out the name and address of each person who on 1 April 2000 was a unit holder in the investment undertaking and who was on that date, resident in the State.

Declaration of intermediary

13. The declaration referred to in section 739D(9)(a) is a declaration in writing to the investment undertaking which—

(a) is made and signed by the intermediary,

(b) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(c) contains the name and address of the intermediary,

(d) declares that, at the time of making the declaration, to the best of the intermediary's knowledge and belief, the person who has beneficial entitlement to each of the units in respect of which the declaration is made—

(i) is not resident in the State, where that person is a company, and

(ii) where that person is not a company, the person is neither resident nor ordinarily resident in the State,

(e) contains an undertaking that where the intermediary becomes aware at any time that the declaration made under subparagraph (d) is no longer correct, the intermediary will notify the investment undertaking accordingly, and

(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.”.