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Amendment of section 739D (gain arising on a chargeable event) of Principal Act.
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44.—Section 739D of the Principal Act is amended—
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(a) in subsection (1) by substituting “In this Chapter and Schedule 2B” for “In this Chapter”,
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(b) in subsection (6) by substituting the following for paragraph (f):
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“(f) (i) is a person who—
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(I) is exempt from income tax under Schedule D by virtue of section 207(1)(b), or
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(II) is exempt from corporation tax by virtue of section 207(1)(b) as it applies for the purposes of corporation tax under section 76(6),
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and
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(ii) has made a declaration to the investment undertaking in accordance with paragraph 7 of Schedule 2B,”,
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(c) in subsection (8D) by substituting the following for paragraphs (a) and (b):
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“(a) In this subsection—
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‘offshore fund’ means any of the following—
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(i) a company not resident in the State,
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(ii) a unit trust scheme, the trustees of which are neither resident nor ordinarily resident in the State, and
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(iii) any arrangements not within subparagraphs (i) or (ii) which take effect by virtue of the law of a territory outside the State and which under that law create rights in the nature of co-ownership (without restricting that expression to its meaning in the law of the State),
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in which persons have an interest and which is established for the purposes of collective investment by such persons and references in this subsection to an offshore fund shall be construed as a reference to any such company, unit trust scheme or arrangements, in which such persons have an interest;
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‘scheme of migration and amalgamation’ means an arrangement whereby the assets of an offshore fund are transferred to an investment undertaking in exchange for the issue by the investment undertaking of units to each of the persons who have an interest in the offshore fund, in proportion to the value of that interest, and as a result of which the value of that interest becomes negligible.
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(b) 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—
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(i) under a scheme of migration and amalgamation the unit holder acquires units in the investment undertaking in exchange for the unit holder's interest in an offshore fund, and
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(ii) within 30 days of the scheme of migration and amalgamation taking place, the investment undertaking forwards to the Collector-General a declaration of a kind referred to in paragraph (c),
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otherwise than in respect of a unit holder whose name is included in the schedule referred to in paragraph (c)(ii).”,
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and
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(d) by substituting the following for subsection (9):
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“(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, where immediately before the chargeable event the investment undertaking or an investment undertaking associated with the first-mentioned investment undertaking—
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(a) is, in relation to the units concerned, in possession of a declaration of a kind referred to in paragraph 13 of Schedule 2B, and
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(b) is not in possession of any information which would reasonably suggest that—
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(i) the information contained in that declaration is not, or is no longer, materially correct,
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(ii) the intermediary failed to comply with the undertaking referred to in paragraph 13(e) of Schedule 2B, or
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(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.
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(9A) 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 or an investment undertaking associated with the first-mentioned investment undertaking—
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(a) is, in relation to the units concerned, in possession of a declaration of a kind referred to in paragraph 14 of Schedule 2B, and
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(b) is not in possession of any information which would reasonably suggest that—
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(i) the information contained in that declaration is not, or is no longer, materially correct,
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(ii) the intermediary failed to comply with the undertaking referred to in paragraph 14(e) of Schedule 2B, or
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(iii) any of the persons, on whose behalf the intermediary holds units of, or receives payment from, the investment undertaking, is not a person referred to in paragraphs (a) to (h) of section 739D(6).”.
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