(i) monies borrowed at or about the time of the purchase of the premises shall be treated as having been employed in the purchase of those premises, and (ii) amounts employed in purchasing a property from an associate of an IREF shall only be treated as third-party debt if immediately prior to the purchase that associate had carried out significant development work on the property, such that the development exceeds 30 per cent of the market value of the property at the date of the commencement of the development, and the property is being acquired by the IREF for the purposes of property rental.
\n(3)
\nHybrid mismatches 31. The Principal Act is amended by inserting the following Part after Part 35B: “PART 35C Implementation of Council Directive (EU) 2016/1164 of 12 July 2016 as regards hybrid mismatches
\nInterpretation and general (Part 35C) Interpretation (Part 35C) 835Z. (1) In this Part— ‘arrangement’, other than in the definition of ‘entity’ and ‘hybrid entity’, means— (a) any transaction, action, course of action, course of conduct, scheme, plan or proposal, (b) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable or intended to be enforceable by legal proceedings, and (c) any series of or combination of the circumstances referred to in paragraphs (a) and (b), whether entered into or arranged by one or two or more enterprises— (i) whether acting in concert or not, (ii) whether or not entered into or arranged wholly or partly outside the State, or (iii) whether or not entered into or arranged as part of a larger arrangement or in conjunction with any other arrangement or arrangements, but does not include an arrangement referred to in section 826; ‘associated enterprise’ shall be construed in accordance with section 835AA; ‘chargeable period’ has the same meaning as it has in Part 41A; ‘controlled foreign company charge’ has the same meaning as it has in Part 35B; ‘deduction’ in respect of a payment, or part thereof, refers to an amount— (a) which may be taken into account as an expenditure or expense, (b) in respect of which an allowance for capital expenditure may be made, or (c) which may otherwise be deducted, allowed or relieved, in computing the profits or gains on which tax falls finally to be borne for the purposes of domestic tax or foreign tax; ‘deemed payment’ means— (a) in relation to a transaction between the head office of an entity and a permanent establishment of that entity, the allocation of payments, profits or gains from the head office to the permanent establishment, and (b) in relation to a transaction between two or more permanent establishments of an entity, the allocation of payments, profits or gains from one permanent establishment to another; ‘Directive (EU) 2016/1164’ means Council Directive (EU) 2016/1164 of 12 July 20165 laying down rules against tax avoidance practices that directly affect the functioning of the internal market, as amended by Directive (EU) 2017/952; ‘Directive (EU) 2017/952’ means Council Directive (EU) 2017/952 of 29 May 20176 amending Directive (EU) 2016/1164 as regards hybrid mismatches with third countries; ‘domestic tax’ means income tax, corporation tax (including a controlled foreign company charge) or capital gains tax; ‘double deduction’ means a deduction in respect of the same payment for the purposes of domestic tax and foreign tax;
\n‘double deduction mismatch outcome’ shall be construed in accordance with section 835AD; ‘dual inclusion income’, subject to section 835AB, means any amount which is included in both territories where the mismatch outcome has arisen; ‘enterprise’ means an entity or an individual; ‘entity’ means— (a) a person (other than an individual), (b) an undertaking (other than an individual), or (c) an agreement, trust or other arrangement, that has legal personality under the laws of the territory in which it is established; ‘financial instrument deduction without inclusion mismatch outcome’ shall be construed in accordance with section 835AJ; ‘foreign company charge’ has the same meaning as it has in Part 35B; ‘foreign tax’ means a tax chargeable on profits or gains, under the laws of a territory other than the State, that is similar to a domestic tax, but not including a withholding tax to the extent that such a tax is refundable where it has been levied; ‘hybrid entity’ means— (a) a person (other than an individual), (b) an undertaking (other than an individual), or (c) an agreement, trust or other arrangement, some or all of the profits or gains of which are treated, or would be so treated but for an insufficiency of profits or gains, under the tax law of one territory as arising or accruing to the entity on its own account, but, for the purposes of tax charged under the tax law of another territory, some or all of the profits or gains of which are treated, or would be so treated but for an insufficiency of profits or gains, as arising or accruing to another enterprise (in this Part referred to as ‘the participator’); ‘included’ in respect of a payment, means an amount of profits or gains arising from the payment— (a) that is treated as arising or accruing to the payee where the payee— (i) is chargeable to domestic tax or foreign tax, as the case may be, but not including any amount which is only so chargeable when it is remitted into the payee territory, (ii) is a pension fund, government body or other entity that, under the laws of the territory in which it is established, is exempt from tax which generally applies to profits or gains in that territory, (iii) is established in a territory, or part of a territory, that does not impose a foreign tax, or (iv) is established in a territory that does not impose a tax that generally applies to profits or gains derived from payments receivable in that territory by enterprises from sources outside that territory, or (b) that is subject to a controlled foreign company charge or a foreign company charge;
\n‘investor’ means an enterprise or the permanent establishment of an entity, against whose profits or gains a deduction is made in respect of a payment in the investor territory; ‘investor territory’, in relation to a payment, means a territory, other than the payer territory, where the payment is deductible; ‘mismatch outcome’ means any or all of the following, as the context requires: (a) a double deduction mismatch outcome; (b) a permanent establishment deduction without inclusion mismatch outcome; (c) a financial instrument deduction without inclusion mismatch outcome; (d) a payment to a hybrid entity deduction without inclusion mismatch outcome; (e) a payment by a hybrid entity deduction without inclusion mismatch outcome; ‘payee’, in respect of a payment, means an enterprise or permanent establishment of an entity— (a) which receives that payment or is treated as receiving that payment under the laws of any territory, other than where that payment is received or treated as being received, as the case may be, in a fiduciary or representative capacity, (b) which is a participator, (c) to the benefit of which the payment is treated as arising or accruing under the laws of any territory, or (d) on which a controlled foreign company charge or foreign company charge is made by reference to that payment; ‘payee territory’ means a territory in which a payee is established; ‘payer’ means— (a) an enterprise, or (b) the permanent establishment of an entity, against whose profits or gains a deduction is made in respect of a payment in a payer territory; ‘payer territory’ means— (a) in a case in which the payment concerned is made by a hybrid entity or a permanent establishment, the territory in which the hybrid entity or permanent establishment, as the case may be, is established, and (b) in all other cases, the territory where the payment in respect of which the deduction concerned is incurred, sourced or made; ‘payment’ means— (a) a transfer of money or money’s worth, or (b) a deemed payment; ‘payment by a hybrid entity deduction without inclusion mismatch outcome’ shall be construed in accordance with section 835AM; ‘payment to a hybrid entity deduction without inclusion mismatch outcome’ shall be construed in accordance with section 835AL; ‘permanent establishment deduction without inclusion mismatch outcome’ shall be construed in accordance with section 835AG; ‘structured arrangement’ means an arrangement involving a transaction, or series of transactions, under which a mismatch outcome arises, where—
\n(a) the mismatch outcome is priced into the terms of the arrangement, or (b) the arrangement was designed to give rise to a mismatch outcome; ‘tax period’ means— (a) in respect of a charge to domestic tax, a chargeable period, (b) in respect of a charge to foreign tax, a period equivalent to a chargeable period, or (c) where the entity concerned is not charged to tax, the period for which financial statements are prepared.
\nAssociated enterprises 835AA. (1) In this section— ‘non-consolidating entity’ means an entity which is valued, or would be so valued if consolidated financial statements were prepared under international accounting standards, in consolidated financial statements— (a) using fair value accounting (within the meaning of international accounting standards), or (b) on the basis that it is an asset held for sale or held for distribution (within the meaning of international accounting standards); ‘significant influence in the management of’, in relation to an entity, means the ability to participate, on the board of directors or equivalent governing body of the entity, in the financial and operating policy decisions of that entity, including where that power does not extend to control or joint control of that entity.
\nWorldwide system of taxation 835AB. (1)Subject to subsection (3), this section applies where an entity is taxable in an investor or payee territory (in this section referred to as the ‘first-mentioned territory’) such that payments (in this section referred to as ‘disregarded payments’) between— (a) the head office of the entity and a permanent establishment of that entity, (b) two or more permanent establishments of the entity, (c) where the entity is a participator in a hybrid entity, the entity and the hybrid entity, or (d) where the entity is a participator in two or more hybrid entities, two or more such hybrid entities, are disregarded when computing the taxable profits of the entity in the first-mentioned territory under a provision of the law of that territory similar in effect to section 26(1).
\nDouble deduction Application of Chapter 2 835AC. This Chapter shall apply— (a) to a company within the charge to corporation tax, and (b) to a transaction giving rise to a mismatch outcome between— (i) entities that are associated enterprises, (ii) the head office of an entity and a permanent establishment of that entity, or (iii) two or more permanent establishments of an entity.
\nDouble deduction mismatch outcome 835AD.(1) A double deduction mismatch outcome shall arise where it would be reasonable to consider that there is, or but for this section there would be, a double deduction arising in respect of a payment, to the extent the payment is not, or would not be, deductible against dual inclusion income.
\nPermanent establishments Application of Chapter 3 835AE. This Chapter shall apply— (a) to an entity which is within the charge to a foreign tax or to corporation tax, and (b) to a transaction that gives rise to a mismatch outcome between— (i) entities that are associated enterprises, (ii) the head office of an entity and a permanent establishment of that entity, or (iii) two or more permanent establishments of an entity.
\nDisregarded permanent establishment 835AF. (1) In this Chapter, ‘disregarded permanent establishment’ means a presence in a territory (in this subsection referred to as the ‘first-mentioned territory’)— (a) which is treated for the purposes of the tax law of the territory in which an entity has its head office (in this subsection referred to as the ‘second-mentioned territory’) as a permanent establishment of that entity, (b) some or all of the profits or gains of which are not included for the purposes of domestic tax in the second-mentioned territory, and (c) in respect of the profits and gains of which— (i) where the first-mentioned territory is the State, the entity is not charged to tax under section 25, and (ii) where the first-mentioned territory is not the State, the entity is not charged to foreign tax.
\nPermanent establishment deduction without inclusion mismatch outcome 835AG.(1) A permanent establishment deduction without inclusion mismatch outcome shall arise in respect of a payment where it would be reasonable to consider that— (a) there is, or but for this section would be, a deduction in the payer territory, in a case in which a corresponding amount has not been included in the payee territory, and (b) the satisfaction of the condition described in paragraph (a) is attributable to— (i) the payment being made to a disregarded permanent establishment, (ii) differences in the allocation of payments between the head office of an entity and a permanent establishment of that entity, or between two or more permanent establishments of an entity, or (iii) where the payment is between the head office of an entity and a permanent establishment of that entity or between two or more permanent establishments of an entity, the payment being disregarded under the laws of the payee territory.
\nFinancial instruments Interpretation (Chapter 4) 835AH.(1) In this Chapter— ‘financial instrument’ includes— (a) securities, within the meaning of section 135(8), (b) shares in a company and similar ownership rights (not being securities) in entities other than a company, (c) futures, options, swaps, derivatives and similar instruments that give rise to a financing return, (d) an arrangement where it is reasonable to consider that the arrangement is equivalent to an arrangement for the lending of money, or money’s worth, at interest, and (e) hybrid transfers; ‘hybrid transfer’ means an arrangement to transfer a financial instrument where the underlying return on that instrument is treated, for tax purposes, as derived by more than one of the parties to the arrangement; ‘financial trader’ means an enterprise that has entered into a financial instrument as part of a business which involves regularly buying and selling financial instruments on that enterprise’s own account; ‘on-market hybrid transfer’ means a hybrid transfer— (a) that is entered into by a financial trader in the ordinary course of its trade, which includes the business of buying and selling financial instruments, and (b) in respect of which the financial trader is required by the payer territory concerned to include, for the purposes of that territory’s tax laws, as trading income all amounts received in connection with the transferred financial instrument concerned; ‘financing return’, in relation to a financial instrument, includes— (a) dividends and manufactured payments, (b) interest, including any discounts or amounts which would be treated as interest under Part 8A, notwithstanding that no election is made under section 267U, (c) the amount of payments that are equivalent to interest under an arrangement described at paragraph (d) of the definition of ‘financial instrument’, and (d) the underlying return referred to in the definition of ‘hybrid transfer’; ‘manufactured payment’ has the same meaning as it has in Chapter 3 of Part 28.
\nApplication of Chapter 4 835AI. This Chapter shall apply— (a) to a company which is within the charge to domestic tax, and (b) to a transaction that gives rise to a mismatch outcome between— (i) entities that are associated enterprises, (ii) the head office of an entity and a permanent establishment of that entity, or (iii) two or more permanent establishments of an entity, other than where that transaction is an on-market hybrid transfer.
\nFinancial instrument deduction without inclusion mismatch outcome 835AJ.(1) A financial instrument deduction without inclusion mismatch outcome shall arise where it would be reasonable to consider that— (a) there is, or but for this section would be, a deduction in the payer territory, without a corresponding amount being included in the payee territory, and (b) the satisfaction of the condition described in paragraph (a) is attributable to differences between domestic tax and foreign tax in the characterisation of— (i) a financial instrument, or (ii) payments made under a financial instrument.
\nHybrid entities Application of Chapter 5 835AK.(1) This Chapter shall apply to a transaction that gives rise to a mismatch outcome between— (a) entities that are associated enterprises, (b) the head office of an entity and a permanent establishment of that entity, or (c) two or more permanent establishments of an entity.
\nPayment to hybrid entity deduction without inclusion mismatch outcome 835AL.(1) A payment to a hybrid entity deduction without inclusion mismatch outcome shall arise in respect of a payment to a hybrid entity where— (a) there is, or but for this section would be, a deduction in the payer territory without a corresponding amount being included in the payee territory, and (b) the satisfaction of the condition described in paragraph (a) is attributable to differences in the allocation of payments to a hybrid entity between— (i) the territory in which the hybrid entity is established, and (ii) the territory in which the participator concerned is established.
\nPayment by hybrid entity deduction without inclusion mismatch outcome 835AM.(1) Subject to subsection (2), a payment by a hybrid entity deduction without inclusion mismatch outcome shall arise in respect of a payment by a hybrid entity where— (a) there is, or but for this section would be, a deduction in respect of a payment in the payer territory without a corresponding amount being included in the payee territory, and (b) the satisfaction of the condition described in paragraph (a) is attributable to the payment being disregarded under the laws of the payee territory.
\nWithholding tax Application of Chapter 6 835AN. This Chapter shall apply to an entity which is within the charge to corporation tax.
\nWithholding tax mismatch outcome 835AO.(1) A withholding tax mismatch outcome shall arise where— (a) an entity enters into a hybrid transfer (within the meaning of Chapter 4), and (b) it is reasonable to consider that the purpose of the hybrid transfer is to secure relief for more than one party to the hybrid transfer in respect of an amount of tax withheld at source.
\nTax residency mismatch Application of Chapter 7 835AP. This Chapter applies to a company which is within the charge to— (a) corporation tax, because it is tax resident in the State under the laws of the State, and (b) foreign tax in a territory other than the State, because it is regarded as tax resident in that territory under the tax laws of that territory.
\nTax residency double deduction mismatch outcome 835AQ.(1) A tax residency double deduction mismatch outcome shall arise where— (a) there is, or but for this section would be, a double deduction arising in respect of a payment, to the extent the amount of the deduction is not, or would not be, deductible against dual inclusion income, and (b) the satisfaction of the condition described in paragraph (a) is attributable to the company being within the charge to both corporation tax and foreign tax.
\nImported mismatch outcomes Application of Chapter 8 835AR. This Chapter shall apply to— (a) a company which is within the charge to domestic tax, and (b) a mismatch outcome which arises through a transaction or series of transactions— (i) that is or are, as the case may be, between— (I) entities that are associated enterprises, (II) the head office of an entity and a permanent establishment of that entity, or (III) two or more permanent establishments of an entity, and (ii) under which there is a payment by a company established in the State to a payee established in a state that is not a Member State.
\nImported mismatch outcome 835AS.(1) An imported mismatch outcome shall arise where it would be reasonable to consider that— (a) a company referred to in section 835AR(a) enters into a transaction, or series of transactions, involving a mismatch outcome where a payment by that company directly or indirectly funds the mismatch outcome, and (b) the mismatch outcome has not been neutralised by the application of a provision similar to this Part in another territory.
\nStructured arrangements Application of Chapter 9 835AT. (1) This Chapter shall apply to a company which is within the charge to domestic tax.
\nStructured arrangements 835AU.(1) A structured arrangement mismatch outcome shall arise where a company, referred to in section 835AT(1), would reasonably be expected to be aware that— (a) it entered into a structured arrangement, (b) it shared in the value of the tax benefit resulting from the mismatch outcome, and (c) the mismatch outcome has not been neutralised through the application of a provision similar to this Part in another territory.
\nCarry forward Carry forward 835AV. To the extent a deduction has been denied under this Part (the ‘denied amount’) in respect of a tax period of an entity, the entity may make a claim requiring that the denied amount be set off for the purposes of domestic tax against any dual inclusion income in succeeding tax periods of the entity and amounts so carried forward shall be relieved first against profits or gains of an earlier tax period in advance of profits or gains of a later tax period.
\nApplication of this Part Scope of application 835AW. This Part shall apply to payments made or arising on or after 1 January 2020.
\nOrder of application 835AX.(1) This Part shall apply after all provisions of the Tax Acts and the Capital Gains Tax Acts, other than section 811C.
\nAmendment of section 739J of Principal Act (investment limited partnerships) 32. (1) Section 739J of the Principal Act is amended— (a) by substituting the following for subsection (1): “(1) (a) In this section— ‘investment limited partnership’ means an investment limited partnership within the meaning of the Investment Limited Partnerships Act 1994 ; ‘relevant losses’ means, in relation to an investment limited partnership— (i) any losses sustained by the investment limited partnership, being losses which would constitute an allowable loss in the hands of a person resident in the State including losses which would so constitute allowable losses if all assets concerned were chargeable assets and no exemption from capital gains tax applied, to the extent that such losses exceed any relevant gains, and (ii) any losses or deficiencies sustained by the investment limited partnership, being losses or deficiencies which if they arose to an individual resident in the State would in the hands of the individual constitute losses for the purposes of income tax, to the extent that such losses or deficiencies exceed any relevant income, as appropriate. (b) For the purpose of this section the definitions of ‘relevant gains’, ‘relevant income’ and ‘relevant payment’ in section 739B(1) shall apply to an investment limited partnership as they apply to an investment undertaking— (i) as if references to ‘unit’ and ‘unit holder’ were references to ‘partnership interest’ and ‘partner’, respectively, in each place where they occur, and (ii) with any other necessary modifications.”, (b) by substituting the following for subsection (2): “(2) (a) Notwithstanding anything in the Acts and subject to subsection (3), an investment limited partnership shall not— (i) be chargeable to tax in respect of relevant gains, relevant income or a relevant payment, or (ii) be entitled to accrue relevant losses. (b) For the purposes of the Acts, relevant income, relevant gains and relevant losses, as the case may be, in relation to an investment limited partnership shall be treated as arising, or, as the case may be, accruing, to each partner of the investment limited partnership in accordance with the apportionment of such relevant income, relevant gains or relevant losses under the terms of the partnership agreement, as if the relevant income, relevant gains or relevant losses had arisen or, as the case may be, accrued, to the partner in the investment limited partnership without passing through the hands of the investment limited partnership.
\n(c) Where for any period the aggregate of the respective amounts (in this paragraph referred to as the ‘aggregate’) of the relevant income and relevant gains which under paragraph (b) are taken as arising or accruing to each partner in the investment limited partnership is less than the full amount of the relevant income and relevant gains arising or accruing to the investment limited partnership for that period, then the amount of the difference (in this paragraph referred to as the ‘balance’) between that full amount and the aggregate shall be treated as arising or accruing to the general partner, and where there is more than one general partner then the balance shall be apportioned between the general partners in equal shares.”, and (c) in subsection (3) — (i) in paragraph (a) — (I) by substituting “relevant income, relevant gains and relevant losses” for “relevant profits”, and (II) by deleting “in respect of units in the investment limited partnership”, (ii) in paragraph (b) by substituting “partner” for “unit holder”, and (iii) in paragraph (b)(ii) by substituting “relevant income, relevant gains and relevant losses” for “relevant profits”.
\nAmendment of section 1035A of Principal Act (relieving provision to section 1035) 33. Section 1035A(1) of the Principal Act is amended in the definition of “authorised agent”— (a) in paragraph (a)(i), by substituting “Regulation 8 of the European Union (Markets in Financial Instruments) Regulations 2017 (S.I. No. 375 of 2017)” for “section 18 of the Stock Exchange Act 1995 ”, and (b) in paragraph (a)(ii) — (i) by substituting “a relevant Member State (within the meaning of section 835I(1))” for “another Member State”, (ii) by substituting “Directive 2014/65/EU of the European Parliament and of the Council of 15 May 20147 ” for “Council Directive 93/22/EEC of 10 May 1993”, and (iii) by inserting “and which provides one, or more, investment service through a branch or agency in the State pursuant to the European Union (Markets in Financial Instruments) Regulations 2017,” after “revoked,”.
\nAmendment of Part 28 of Principal Act (purchase and sale of securities) 34. Part 28 of the Principal Act is amended by inserting the following Chapter after Chapter 2: “Chapter 3 Stock borrowing and repurchase agreements Interpretation (Chapter 3) 753A.In this Chapter— ‘Act of 1999’ means the Stamp Duty Consolidation Act 1999; ‘building society’ has the same meaning as it has in Chapter 4 of Part 8; ‘equivalent stock’— (a) in relation to a stock borrowing, has the same meaning as it has in section 87 of the Act of 1999, and (b) in relation to a repurchase agreement, has the same meaning as it has in section 87A of the Act of 1999; ‘financial transaction’ means a transaction comprising— (a) a stock borrowing or a stock transfer in respect of which— (i) the stock seller or stock buyer is a qualifying institution, and (ii) the other party is not an individual or a partnership, and (b) the corresponding stock return for that stock borrowing or stock transfer, where it is reasonable to consider that the transaction, and all associated agreements, arrangements or transactions, are equivalent to a transaction or agreement for the lending of money, or money’s worth, at interest; ‘investment undertaking’ has the same meaning as it has in Chapter 1A of Part 27; ‘lender’ has the same meaning as it has in section 87 of the Act of 1999; ‘manufactured payment’ means a payment by a stock buyer to a stock seller, whether made directly or indirectly, to reimburse that stock seller for any distribution or interest arising or accruing to the stock buyer as a consequence of the transfer of the qualifying securities as part of a financial transaction; ‘pension scheme’ has the same meaning as it has in Chapter 4 of Part 8; ‘qualifying institution’ means— (a) a company within the charge to corporation tax, (b) an investment undertaking, (c) a pension scheme, (d) a scheme, the income of which, in whole or in part, is exempt from income tax under section 790B, (e) a person whose income, in whole or in part, is exempt— (i) from income tax, pursuant to section 207(1)(b), or (ii) corporation tax, by virtue of section 207(1)(b) as it applies for the purposes of corporation tax under section 76(6), or (f) a building society; ‘qualifying securities’ means— (a) securities that are interest bearing, discounted or premium-bearing, or (b) stocks or shares that are quoted on a recognised stock exchange; ‘repo seller’ has the same meaning as it has in section 87A of the Act of 1999; ‘repo buyer’ has the same meaning as it has in section 87A of the Act of 1999;
\n‘repurchase agreement’ means a repurchase agreement (within the meaning of section 87A of the Act of 1999) in respect of qualifying securities; ‘security’ has the same meaning as it has in Chapter 2 of Part 6; ‘stock borrower’ has the same meaning as it has in section 87 of the Act of 1999; ‘stock borrowing’ means a stock borrowing (within the meaning of section 87 of the Act of 1999) in respect of qualifying securities; ‘stock buyer’ means— (a) in relation to a stock borrowing, a stock borrower, and (b) in relation to a repurchase agreement, a repo buyer; ‘stock return’— (a) in relation to a stock borrowing, has the same meaning as it has in section 87 of the Act of 1999, and (b) in relation to a repurchase agreement, has the same meaning as it has in section 87A of the Act of 1999, in each case subject to the modification that a reference in the definition of that term in the section concerned to ‘stock’ shall be construed as a reference to qualifying securities; ‘stock transfer’, in respect of a repurchase agreement, means a stock transfer (within the meaning of section 87A of the Act of 1999); ‘stock seller’ means— (a) in relation to a stock borrowing, a lender, and (b) in relation to a repurchase agreement, a repo seller.
\nApplication 753B.(1) This Chapter shall apply to a financial transaction, entered into on or after 1 January 2020, other than— (a) a financial transaction— (i) pursuant to which a stock buyer holds qualifying securities or equivalent stock, and (ii) as a consequence of which a distribution arises or accrues to that stock buyer from those qualifying securities or that equivalent stock, except where— (I) the stock seller would be entitled— (A) to a repayment of any tax withheld from the interest, or (B) to receive the distribution without the deduction of tax, under any provision of the Tax Acts or under arrangements made with another territory having the force of law by virtue of section 826(1), had that stock seller not entered into the financial transaction and received that distribution directly, and (II) the distribution is in the form of cash, (b) a financial transaction— (i) pursuant to which a stock buyer holds qualifying securities, and (ii) as a consequence of which interest arises or accrues to that stock buyer from those securities, except where— (I) the stock seller would be entitled— (A) to a repayment of any tax withheld from the distribution, or (B) to receive the interest without deduction of tax, under any provision of the Tax Acts or under arrangements made with another territory having the force of law by virtue of section 826(1), had that stock seller not entered into the financial transaction and received that interest directly, or (II) neither the stock seller nor the stock buyer would be entitled to receive a payment of interest without deduction of tax under section 246 and, where such tax is deducted, neither the stock seller nor the stock buyer would be entitled to a repayment of any such tax withheld or any part thereof.
\nPayment and receipt of dividends or interest and manufactured payments under a stock borrowing or repurchase agreement 753C.(1) In this section, ‘specified amount’ refers to an amount of interest or distribution arising or accruing to a stock buyer in respect of qualifying securities, or equivalent stock, held by the stock buyer pursuant to a financial transaction.
\nRefund of dividend withholding tax 753D.(1) This section shall apply to a financial transaction where— (a) a distribution is paid to a stock buyer pursuant to a stock borrowing or the repurchase agreement in respect of a stock transfer, (b) the corresponding stock return for that stock borrowing or stock transfer has taken place, (c) the distribution received by the stock buyer pursuant to the stock borrowing or repurchase agreement was subject to dividend withholding tax, (d) the stock seller would have been entitled— (i) to a repayment of the dividend withholding tax referred to in paragraph (c), or (ii) to receive the distribution without deduction of that dividend withholding tax, had that stock seller not entered into the financial transaction and received that distribution directly, (e) the stock seller has not been compensated by the stock buyer, or a party connected to that stock buyer, for the dividend withholding tax referred to in paragraph (c), or any part of that dividend withholding tax, and (f) the stock buyer is not entitled under— (i) section 831, (ii) an arrangement having the force of law by virtue of section 826(1), (iii) Schedule 24, or (iv) any other provision (including under the law of a territory other than the State), to a repayment, credit, deduction or other relief for the dividend withholding tax referred to in paragraph (c) or any part of that dividend withholding tax.
\nAnti-avoidance 753E.(1) In this section— ‘the Acts’ means— (a) the Tax Acts, (b) the Capital Gains Tax Acts, (c) the Act of 1999, and the enactments amending or extending that Act, and (d) the Value-Added Tax Consolidation Act 2010 , and the enactments amending or extending that Act, and any instrument made thereunder and any instrument that is made under any other enactment and which relates to those Acts; ‘tax advantage’ has the same meaning as it has in section 811C; ‘transaction period’ means the period after— (a) qualifying securities have been obtained from a lender under a stock borrowing, or (b) a stock transfer has taken place under a repurchase agreement, but before the corresponding stock return has taken place.
\nRecords 753F.(1) Subject to subsection (2), a qualifying institution shall maintain a separate record of each financial transaction, for a period of 6 years from the date of the stock return concerned, which shall include, at a minimum— (a) the name and address of both parties to the financial transaction, (b) the agreement underlying the financial transaction and any documentation in respect of any associated agreements, arrangements or transactions, (c) the type, nominal value, description and amount of the qualifying securities, including any equivalent stock, transferred under the financial transaction, (d) the date on which— (i) qualifying securities have been obtained from the lender under the stock borrowing concerned, or (ii) the stock transfer has taken place under the repurchase agreement concerned, as the case may be, (e) the date of the stock return, (f) details of any manufactured payments arising pursuant to the financial transaction, (g) details of any interest rate or rate of return applicable to the financial transaction, and (h) details of the fees, profits, margins or other financial gain accruing, charged or expected to arise pursuant to the financial transaction.
\nCapital Gains Tax Amendment of section 604B of Principal Act (relief for farm restructuring) 35. (1) Section 604B(1)(a) of the Principal Act is amended in the definition of “relevant period” by substituting “31 December 2022” for “31 December 2019”.
\nAmendment of section 616 of Principal Act (groups of companies: interpretation) 36. (1) Section 616 of the Principal Act is amended in subsection (1) by substituting the following for paragraph (a): “(a) subject to sections 617(5), 621(1) and 623(7), a reference to a company or companies shall apply only to a company or companies, as limited by subsection (2), being a company or, as the case may be, companies which, by virtue of the law of a relevant Member State, is or are resident for the purposes of tax in such a relevant Member State, and for this purpose— ‘relevant Member State’, in addition to the meaning assigned to that expression by subsection (7), shall be deemed to include the United Kingdom; ‘tax’, in relation to a relevant Member State other than the State, means any tax imposed in the relevant Member State which corresponds to corporation tax in the State; and references to a member or members of a group of companies shall be construed accordingly;”.
\nAmendment of section 621 of Principal Act (depreciatory transactions in group) 37. Section 621(8) of the Principal Act is amended— (a) by substituting for paragraph (a) the following: “(a) Where, under subsection (6), a reduction is made in a loss, any chargeable gain accruing on a disposal of the shares in or securities of any other company which was a party to the depreciatory transaction by reference to which the reduction was made, being a disposal not later than 10 years after the depreciatory transaction, shall, for the purposes of the making of a self-assessment, be reduced to such an extent that the gain does not reflect any increase in the value of the company’s assets attributable to the depreciatory transaction on the value of those shares or securities at the time of their disposal.”, and (b) by inserting after paragraph (a) the following: “(aa) The inspector, in making an assessment, or the Appeal Commissioners, on an appeal against an assessment, shall reduce any chargeable gain to such an extent as appears to the inspector or the Appeal Commissioners, as the case may be, to be just and reasonable on the basis that the gain ought not to reflect any increase in the value of the company’s assets attributable to a depreciatory transaction.”.
\nAmendment of provisions relating to exit tax 38. (1) The Principal Act is amended— (a) in section 627— (i) in subsection (2) — (I) by inserting “or, in the case of paragraph (c), at the time specified in subsection (2A)” after “event concerned”, and (II) by deleting “, being a company that is resident in a Member State (other than the State),” in paragraphs (a) and (b), and (ii) by inserting the following after subsection (2): “(2A) Notwithstanding anything in subsection (2), as respects the event referred to in paragraph (c) of that subsection, the time immediately before the company referred to in that paragraph ceases to be resident in the State is to be taken as the time at which the company shall be deemed to have disposed of all its assets (other than assets excepted from that paragraph by subsection (6)) and to have immediately reacquired them at their market value.”, and (b) in section 629B, by substituting “section 32” for “section 30” in subsection (1).
\nExcise Rates of tobacco products tax 39. The Finance Act 2005 is amended with effect as on and from 9 October 2019 by substituting the following for Schedule 2 (as amended by section 34 of the Finance Act 2018): “SCHEDULE 2 Rates of Tobacco Products Tax (With effect as on and from 9 October 2019) ”.
\nAmendment of Chapter 1 of Part 2 of, and Schedules 2 and 2A to, Finance Act 1999 (mineral oil tax) 40. (1) The Finance Act 1999 is amended with effect as on and from 9 October 2019— (a) in section 96(1B), by substituting “A is the amount to be charged per tonne of CO2 emitted, being €26 in the case of petrol, aviation gasoline, and heavy oil used as a propellant or for air navigation or for private pleasure navigation, and €20 in the case of each other description of mineral oil in Schedule 2A” for “A is the amount, €20, to be charged per tonne of CO2 emitted”, (b) by substituting the following schedule for Schedule 2: “SCHEDULE 2 Rates of Mineral Oil Tax (With effect as on and from 9 October 2019) ”. (c) by substituting the following schedule for Schedule 2A: “SCHEDULE 2A Carbon Charge (With effect as on and from 9 October 2019) ”.
\nAmendment of Chapter 1 of Part 2 of Finance Act 1999 (mineral oil tax) 41. Chapter 1 of Part 2 of the Finance Act 1999 is amended with effect as on and from 1 January 2020— (a) in section 94— (i) in subsection (1) — (I) by substituting the following definition for the definition of “combustion in the engine of a motor vehicle”: “ ‘combustion in the engine’ shall be construed as including internal combustion in such engine and external combustion as fuel for such engine;”, and (II) in the definition of “propellant”, by substituting the following for paragraph (a): “(a) in relation to mineral oil in the State, mineral oil used for combustion in the engine of a motor vehicle or a craft used for private pleasure navigation, or”, and (ii) by substituting the following for subsection (2): “(2) (a) In this Chapter ‘fuel tank’ means— (i) any tank or other vessel in or on a motor vehicle, which is used, or is capable of being used, to supply fuel for combustion in the engine of— (I) the motor vehicle for the purposes of propulsion of that vehicle, or (II) another motor vehicle which can provide traction for those purposes, or (ii) any tank or other vessel in or on a craft used for private pleasure navigation, which is used, or is capable of being used, to supply fuel for combustion in the engine of the craft for the purposes of propulsion of that craft. (b) For the purposes of subparagraph (i) of paragraph (a), it shall be presumed, until the contrary is shown, that a tank or other vessel referred to in that subparagraph is capable of being used to supply fuel for the purposes of propulsion if there is any outlet from the tank or vessel other than— (i) an outlet which is permanently and solely for the supply of fuel for refrigeration, oxygenation, thermal insulation or other specialised systems in or on the motor vehicle, or (ii) in the case of an oil or gas road tanker, an outlet which is solely for discharging fuel from the tanker. (c) For the purposes of subparagraph (ii) of paragraph (a), it shall be presumed, until the contrary is shown, that a tank or other vessel referred to in that subparagraph is capable of being used to supply fuel for the purposes of propulsion if there is any outlet from the tank or vessel other than an outlet which is permanently and solely for the supply of fuel for purposes other than as a propellant in or on the craft.”, (b) in section 96(2A)(a), by substituting “vehicle” for “motor vehicle”, (c) in section 97A(1), by inserting “up to and including 31 December 2019” after “private pleasure navigation”,
\n(d) in section 100(4), by substituting the following paragraph for paragraph (c): “(c) present in the fuel tank of a craft used for private pleasure navigation at the time that craft is brought into the State from another Member State by a private individual, where the mineral oil has, in that Member State, been released for consumption as a propellant, except any such mineral oil that has been marked in accordance with the requirements of that other Member State.”, (e) in section 102(6)(a) — (i) in subparagraph (i), by substituting “vehicle” for “motor vehicle”, and (ii) in subparagraph (ii), by substituting “vehicle” for “motor vehicle”, and (f) in section 104(2) — (i) in paragraph (m), by substituting “as a propellant” for “combustion in the engine of a motor vehicle”, and (ii) in paragraph (q), by substituting “fuel tank in or on a motor vehicle or a craft used for private pleasure navigation” for “fuel tank in or on a motor vehicle”.
\nAmendment of section 99A of Finance Act 1999 (relief for qualifying road transport operators) 42. Section 99A of the Finance Act 1999 is amended by substituting the following for subsection (3): “(3) Subject to a maximum repayment rate of €75.00 per 1,000 litres, the amount to be repaid per 1,000 litres of gas oil under subsection (2) is determined— (a) where gas oil has been purchased before 1 January 2020, by the formula— A = (P - 1,000) x 0.3, or (b) where gas oil has been purchased on or after 1 January 2020— (i) when P is less than or equal to €1,070, by the formula— A = (P - 1,000) x 0.3, or (ii) when P is greater than €1,070, by the formula— A = 21 + [(P - 1,070) x 0.6], where— A is the amount to be repaid per 1,000 litres, and P is an estimate of the average price (exclusive of value-added tax) in euro per 1,000 litres of gas oil purchased by qualifying road transport operators during the repayment period, as determined in accordance with subsection (4).”.
\nAmendment of section 78A of Finance Act 2003 (relief for small breweries) 43. (1) Section 78A of the Finance Act 2003 is amended— (a) in subsection (1)(a), by substituting “50,000 hectolitres” for “40,000 hectolitres”, (b) in subsection (3)(b)(ii), by substituting “100,000 hectolitres” for “80,000 hectolitres”, and (c) in subsection (4)(b), by substituting “50,000 hectolitres” for “40,000 hectolitres”.
\nAmendment of Schedule 2 to Finance Act 2008 (electricity tax) 44. The Finance Act 2008 is amended by substituting the following schedule for Schedule 2: “SCHEDULE 2 Rates of Electricity Tax (With effect as on and from 1 January 2020) ”.
\nAmendment of section 67 of Finance Act 2010 (natural gas carbon tax rate) 45.
\nof the Finance Act 2010 is amended with effect as on and from 1 May 2020— (a) in subsection (1), by substituting “€5.22” for “€4.10”, and (b) in subsection (3), by substituting “€0.026” for “€0.020”.
\nAmendment of section 78 of, and Schedule 1 to, Finance Act 2010 (solid fuel carbon tax) 46. The Finance Act 2010 is amended with effect as on and from 1 May 2020— (a) in section 78(3), by substituting “€26” for “€20”, and (b) by substituting the following for Schedule 1: “SCHEDULE 1 Rates of Solid Fuel Carbon Tax (With effect as on and from 1 May 2020) ”.
\nAmendment of Chapter 1 of Part 2 of Finance Act 2002 (betting duty relief) 47. (1) Chapter 1 of Part 2 of the Finance Act 2002 is amended— (a) in section 64 by inserting the following definitions: “ ‘accounting period’ means a period of 3 months beginning on the first day of January, April, July or October; ‘aid’ means aid granted in accordance with Commission Regulation (EU) No. 1407/2013; ‘Commission Regulation (EU) No. 1407/2013’ means Commission Regulation (EU) No. 1407/2013 of 18 December 20138 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid;”, (b) by inserting the following section after section 68: “68A. ((1) Subject to such conditions as the Revenue Commissioners may prescribe or otherwise impose, a person liable to betting duty under section 67 or betting intermediary duty under section 67B, or both, may be relieved of such duty provided— (a) that person is licensed in accordance with section 7 , 7B or 7C of the Betting Act 1931 , and (b) he or she holds a current tax clearance certificate issued under section 1094 of the Taxes Consolidation Act 1997 , and provided further that— (i) without prejudice to paragraph (ii), the amount of such duty that he or she may be relieved of shall not exceed €50,000 in any calendar year, and (ii) in a case where more than one person forms a single undertaking, as that expression is to be construed by virtue of subsection (2), the total amount of such duty that that single undertaking may be relieved of shall not exceed €50,000 in any calendar year, and a reference in paragraph (i) or (ii) to duty, where the case is one of liability to both betting duty and betting intermediary duty, is a reference to both those duties, taken together.
\nAmendment of section 96 of Finance Act 2001 (interpretation (Part 2)) 48. (1)
\nAmendment of section 130 of Finance Act 1992 (interpretation) 49.
\nof the Finance Act 1992 is amended by inserting the following definitions: “ ‘certificate of conformity’, notwithstanding any enactment which provides for the continued recognition of certificates issued— (a) in respect of motor vehicles— (i) up to 31 August 2020, has the same meaning as in paragraph 36 of Article 3 of Directive 2007/46/EC of the European Parliament and of the Council of 5 September 20079 , and (ii) on and after 1 September 2020, has the same meaning as in paragraph (5) of Article 3 of Regulation (EU) 2018/858 of the European Parliament and of the Council of 30 May 201810 , (b) in respect of agricultural and forestry vehicles, has the same meaning as in Article 3 of Regulation (EU) 167/2013, and (c) in respect of two- or three-wheeled vehicles and quadricycles, has the same meaning as in Article 3 of Regulation (EU) 168/2013; ‘registration certificate’ has the same meaning as in paragraph (c) of Article 2 of Council Directive 1999/37/EC of 29 April 199911 ; ‘NOx’ has the same meaning as in paragraph (6) of Article 3 of Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 201612 ;”.
\nAmendment of section 132 of Finance Act 1992 (charge of excise duty) 50. (1)
\nof the Finance Act 1992 is amended, in subsection (3) — (a) by substituting the following paragraph for paragraph (a): “(a) in case the vehicle the subject of the registration or declaration concerned is a category A vehicle— (i) in respect of the CO2 emissions of the vehicle— (I) by reference to Table 1 to this subsection, or (II) where— (A) the level of CO2 emissions cannot be confirmed by reference to the relevant EC type-approval certificate, EC certificate of conformity or vehicle registration certificate issued in another Member State, and (B) the Commissioners are not satisfied of the level of CO2 emissions by reference to any other document produced in support of the declaration for registration, at the rate of an amount equal to the highest percentage specified in Table 1 to this subsection of the value of the vehicle or €720, whichever is the greater, and (ii) in respect of the NOx emissions of the vehicle— (I) by reference to— (A) Table 2 to this subsection, and (B) the unit of measurement used in the relevant EC type-approval certificate, EC certificate of conformity, vehicle registration certificate issued in another Member State or other document produced in support of the declaration for registration, as the case may be, subject to a maximum of €4,850 in respect of vehicles designed to use heavy oil as a propellant and €600 in respect of all other vehicles, or (II) where— (A) the level of NOx emissions cannot be confirmed by reference to the relevant EC type-approval certificate, EC certificate of conformity or vehicle registration certificate issued in another Member State, and (B) the Commissioners are not satisfied of the level of NOx emissions by reference to any other document produced in support of the declaration for registration, at the rate €4,850 in respect of vehicles designed to use heavy oil as a propellant and €600 in respect of all other vehicles.”, (b) by deleting paragraph (aa), (c) by deleting Table 1 to that subsection, (d) by designating Table 2 to that subsection as Table 1 to that subsection, and (e) by inserting the following Table after Table 1 (as that table has been designated under paragraph (d)): “Table 2 ”.
\nAmendment of section 135C of Finance Act 1992 (remission or repayment in respect of vehicle registration tax, etc.) 51. ((1) Section 135C of the Finance Act 1992 is amended— (a) in subsection (1) — (i) in paragraph (a) — (I) by substituting “Subject to paragraph (aa), where a person” for “Where a person”, (II) by substituting “31 December 2020” for “31 December 2019”, and (III) in subparagraph (i), by substituting “paragraph (a) ” for “paragraph (aa) ”, and (ii) by inserting the following paragraph after paragraph (a): “(aa) Paragraph (a) shall not apply to a category A vehicle or a category B vehicle— (i) where the level of CO2 emissions of the vehicle is greater than or equal to 81g/km, or (ii) where— (I) the level of CO2 emissions cannot be confirmed by reference to the relevant EC type-approval certificate, EC certificate of conformity or vehicle registration certificate issued in another Member State, and (II) the Commissioners are not satisfied of the level of CO2 emissions by reference to any other document produced in support of the declaration for registration.”, (b) in subsection (2) — (i) in paragraph (a) — (I) by substituting “Subject to paragraph (aa), where a person” for “Where a person”, (II) by substituting “31 December 2020” for “31 December 2019”, and (III) in subparagraph (i), by substituting “paragraph (a) ” for “paragraph (aa) ”, and (ii) by inserting the following paragraph after paragraph (a): “(aa) Paragraph (a) shall not apply to a category A vehicle or a category B vehicle— (i) where the level of CO2 emissions of the vehicle is greater than or equal to 66g/km, or (ii) where— (I) the level of CO2 emissions cannot be confirmed by reference to the relevant EC type-approval certificate, EC certificate of conformity or vehicle registration certificate issued in another Member State, and (II) the Commissioners are not satisfied of the level of CO2 emissions by reference to any other document produced in support of the declaration for registration.”, and (c) in subsection (3)(b), by substituting “paragraph (a) ” for “paragraph (aa) ”.
\nValue-Added Tax Interpretation (Part 3) 52. In this Part “Principal Act” means the Value-Added Tax Consolidation Act 2010 .
\nAmendment of Chapter 1 of Part 8 of Principal Act (general provisions) 53. The Principal Act is amended— (a) in section 59— (i) in subsection (1), by substituting for the definition of “qualifying vehicle” the following: “ ‘qualifying vehicle’ means a motor vehicle which, for the purposes of vehicle registration tax, is first registered, in accordance with section 131 of the Finance Act 1992 — (a) in the period on or after 1 January 2009 and up to 31 December 2020, and has, for the purposes of that registration, a level of CO2 emissions of less than 156g/km, or (b) on or after 1 January 2021, and has, for the purposes of that registration, a level of CO2 emissions of less than 140g/km.”, and (ii) by deleting subsection (2A), and (b) in section 62A(1)(a), by deleting “or (2A)”.
\nAmendment of section 108 of Principal Act (inspection and removal of records) 54. Section 108 of the Principal Act is amended by inserting the following subsections after subsection (6) — “(7) The cases in which there is exercisable the powers conferred on an authorised officer by this section shall include the case specified in subsection (7) and this section shall be construed and have effect accordingly.
\nAmendment of Part 2 of Schedule 3 to Principal Act (goods and services chargeable at the reduced rate) 55. Part 2 of Schedule 3 to the Principal Act is amended with effect from 1 January 2020 by inserting the following paragraph after paragraph 3: “Food supplements 3A. The supply of food supplements of a kind used for human oral consumption.”.
\nStamp Duties Interpretation (Part 4) 56. In this Part “Principal Act” means the Stamp Duties Consolidation Act 1999 .
\nAmendment of stamp duty rate on non-residential property 57. (1) The Principal Act is amended— (a) in section 83D— (i) in subsections (2)(a) and (6)(a), by substituting “7.5 per cent” for “6 per cent”, and (ii) in subsection (6)(a), by substituting “11/15” for “2/3”, and (b) in Schedule 1— (i) in the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance”, in paragraph (4), by substituting “7.5 per cent” for “6 per cent”, and (ii) in the Heading “LEASE”, in paragraph (3)(b), by substituting “7.5 per cent” for “6 per cent”.
\nAmendment of section 124B of Principal Act (certain premiums of life assurance) 58. (1) Section 124B(1) (as amended by section 64 of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2019 ) of the Principal Act is amended in the definition of “insurer”— (a) in paragraph (c), by substituting “State,” for “State, or”, (b) in paragraph (d), by substituting “supervising such persons, or” for “supervising such persons;”, and (c) by inserting the following paragraph after paragraph (d): “(e) a person who is the holder of an authorisation to undertake insurance granted by the authority in Gibraltar charged by law with the duty of supervising such persons;”.
\nAmendment of section 125 of Principal Act (certain premiums of insurance) 59. (1) Section 125(1) (as amended by section 65 of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2019 ) of the Principal Act is amended, in the definition of “insurer”, by inserting the following after “such persons”: “, or who is the holder of an authorisation to carry on the business of insurance granted by the authority in Gibraltar charged by law with the duty of supervising such persons”.
\nAmendment of section 126AA of Principal Act (further levy on certain financial institutions) 60. (1) Section 126AA(6) of the Principal Act is amended by substituting “170 per cent” for “59 per cent”.
\nCancellation schemes of arrangement 61. The Principal Act is amended by the insertion of the following section after section 31C: “Cancellation schemes of arrangement 31D. ((1) In this section— ‘Act of 2014’ means the Companies Act 2014 ; ‘agreement’ includes any arrangement, contract, compromise, understanding, scheme, offer, transaction or series of transactions; ‘company’ means a company formed and registered under the Act of 2014 or an existing company within the meaning of that Act; ‘registrar’ has the same meaning as it has in the Act of 2014; ‘scheme order’ has the same meaning as it has in Chapter 1 of Part 9 of the Act of 2014.
\nCapital Acquisitions Tax Interpretation (Part 5) 62. In this Part “Principal Act” means the Capital Acquisitions Tax Consolidation Act 2003 .
\nAmendment of section 48 of Principal Act (affidavits and accounts) 63. (1) The Principal Act is amended— (a) in section 48, by deleting subsections (1), (2) and (4) to (9), and (b) by inserting the following section after section 48: ‘Information about a deceased person’s property 48A. ((1) In this section— ‘electronic means’ has the meaning given to it by section 917EA of the Taxes Consolidation Act 1997 ; ‘PPS number’, in relation to an individual, means the individual’s personal public service number within the meaning of section 262 of the Social Welfare Consolidation Act 2005 ; ‘probate’ includes letters of administration.
\nAmendment of section 86 of Principal Act (exemption relating to certain dwellings) 64. Section 86 of the Principal Act is amended— (a) in subsection (2) — (i) in paragraph (a), by substituting “his or her death, and” for “his or her death,”, (ii) in paragraph (b), by substituting “the date of the inheritance.” for “the date of the inheritance, and”, and (iii) by deleting paragraph (c), (b) in subsection (4), by substituting “subsections (4A), (4B), (5) and (6) ” for “subsections (5) and (6) ”, and (c) by inserting after subsection (4) the following: “(4A) For the purposes of subsection (4), and in relation to a disponer and a successor— (a) a dwelling house shall not be regarded as a relevant dwelling house where the successor is beneficially entitled to, or has a beneficial interest in, any other dwelling house— (i) at the date of the inheritance of the first-mentioned dwelling house in this paragraph (a), or (ii) at the valuation date of the first-mentioned dwelling house in this paragraph (a), if this date is later than that date of inheritance and such entitlement to, or interest in, that dwelling house is taken from the disponer, and (b) where— (i) a dwelling house to which the successor is beneficially entitled, or in which the successor has a beneficial interest, is regarded as a relevant dwelling house, and (ii) that successor acquires a subsequent beneficial entitlement to or a beneficial interest in any other dwelling house by way of an inheritance taken from the disponer, the first-mentioned dwelling house in this paragraph (b) shall cease to be regarded as a relevant dwelling house on the date on which that subsequent entitlement or interest is acquired. (4B) Where paragraph (b) of subsection (4A) applies— (a) subparagraphs (i) and (ii) of subsection (6) shall apply as if the dwelling house had not been a relevant dwelling house at the date of the inheritance, and (b) the relevant date (within the meaning of section 46(5)) from which interest is to be charged in accordance with section 51(2) shall be the earliest valuation date for any other dwelling house to which the successor takes a beneficial entitlement or in which the successor takes a beneficial interest from the disponer if that date is later than the date which, apart from this subsection, would be the relevant date.”.
\nAmendment of Schedule 2 to Principal Act (computation of tax) 65. (1) Paragraph 1 of Part 1 of Schedule 2 to the Principal Act is amended, in paragraph (a) of the definition of “group threshold”, by substituting “€335,000” for “€320,000”.
\nMiscellaneous Interpretation (Part 6) 66. In this Part “Principal Act” means the Taxes Consolidation Act 1997 .
\nMandatory automatic exchange of information in relation to reportable cross-border arrangements 67. (1) Part 33 of the Principal Act is amended by inserting the following Chapter after Chapter 3: “Chapter 3A Implementation of Council Directive (EU) 2018/822 of 25 May 201814 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements Interpretation (Chapter 3A) 817RA. (1) In this Chapter— ‘arrangement’ means— (a) any transaction, action, course of action, course of conduct, scheme, plan or proposal, (b) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable or intended to be enforceable by legal proceedings, and (c) any series of or combination of the circumstances referred to in paragraphs (a) and (b), whether entered into or arranged by one or two or more persons— (i) whether acting in concert or not, (ii) whether or not entered into or arranged wholly or partly outside the State, or (iii) whether or not entered into or arranged as part of a larger arrangement or in conjunction with any other arrangement or arrangements, but does not include an arrangement referred to in section 826; ‘associated enterprise’ has the same meaning as it has in Article 3(23) of the Directive; ‘competent authority’ means the authority designated as such by a Member State for the purposes of the Directive and, in relation to the State, means the Revenue Commissioners; ‘cross-border arrangement’ means an arrangement concerning either more than one Member State or a Member State and a third country where at least one of the following conditions is met: (a) not all of the participants in the arrangement are resident for tax purposes in the same jurisdiction; (b) one or more of the participants in the arrangement is simultaneously resident for tax purposes in more than one jurisdiction; (c) one or more of the participants in the arrangement carries on a business in another jurisdiction through a permanent establishment situated in that jurisdiction and the arrangement forms part or the whole of the business of that permanent establishment; (d) one or more of the participants in the arrangement carries on an activity in another jurisdiction without being resident for tax purposes or creating a permanent establishment situated in that jurisdiction; (e) such arrangement has a possible impact on the automatic exchange of information or the identification of beneficial ownership;
\n‘Directive’ means Council Directive 2011/16/EU of 15 February 201115 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC, as amended by Council Directive 2014/107/EU of 9 December 201416 , Council Directive (EU) 2015/2376 of 8 December 201517 , Council Directive (EU) 2016/881 of 25 May 201618 , Council Directive (EU) 2016/2258 of 6 December 201619 and Council Directive (EU) 2018/822 of 25 May 201820 ; ‘electronic means’ has the same meaning as it has in section 917EA(1); ‘hallmark’, ‘marketable arrangement’ and ‘person’ have the same meanings respectively as they have in Article 3 of the Directive; ‘intermediary’ means any person— (a) that— (i) designs, markets, organises or makes available for implementation or manages the implementation of a reportable cross-border arrangement, or (ii) having regard to the relevant facts and circumstances and based on available information and the relevant expertise and understanding required to provide such services, knows or could be reasonably expected to know that such person has undertaken to provide, directly or by means of other persons, aid, assistance or advice with respect to designing, marketing, organising, making available for implementation or managing the implementation of a reportable cross-border arrangement, and (b) that meets at least one of the following conditions: (i) the person is resident for tax purposes in a Member State; (ii) the person has a permanent establishment in a Member State through which the services with respect to the arrangement are provided; (iii) the person is incorporated in, or governed by the laws of, a Member State; (iv) the person is registered with a professional association related to legal, taxation or consultancy services in a Member State; ‘reference number’ means the number assigned to a reportable cross-border arrangement by the Revenue Commissioners or by the competent authority of another Member State; ‘Regulations of 2012’ means the European Union (Administrative Cooperation in the Field of Taxation) Regulations 2012 ( S.I. No. 549 of 2012 ); ‘relevant taxpayer’ means any person to whom a reportable cross-border arrangement is made available for implementation, or who is ready to implement a reportable cross-border arrangement or has implemented the first step of such an arrangement; ‘reportable cross-border arrangement’ means any cross-border arrangement that contains at least one of the hallmarks set out in Annex IV of the Directive; ‘return’ has the same meaning as it has in section 917D(1);
\n‘specified information’ means, in respect of a reportable cross-border arrangement, the information set out in subsection (3); ‘tax advantage’ means— (a) relief or increased relief from, or a reduction, avoidance or deferral of, any assessment, charge or liability to tax, including any potential or prospective assessment, charge or liability, (b) a refund or repayment of, or a payment of, an amount of tax, or an increase in an amount of tax refundable, repayable or otherwise payable to a person, including any potential or prospective amount so refundable, repayable or payable, or an advancement of any refund or repayment of, or payment of, an amount of tax to a person, or (c) the avoidance of any obligation to deduct or account for tax, arising out of or by reason of an arrangement, including an arrangement where another arrangement would not have been undertaken or arranged to achieve the results, or any part of the results, achieved or intended to be achieved by the arrangement; ‘taxpayer identification number’ means the tax identification number (TIN) allocated to a person by the tax administration of the jurisdiction of residence of the person and, in relation to the State, means a tax reference number within the meaning of section 885.
\nApplication of Chapter 3A 817RB.(1) Subject to subsection (2), this Chapter applies to all taxes of any kind levied by, or on behalf of, a Member State or its territorial or administrative subdivisions, including local authorities.
\nDuties of intermediary 817RC. (1) An intermediary within the meaning of paragraph (a)(i) of the definition of ‘intermediary’ in section 817RA(1) shall make a return to the Revenue Commissioners of the specified information within 30 days beginning— (a) on the day after the reportable cross-border arrangement is made available for implementation, (b) on the day after the reportable cross-border arrangement is ready for implementation, or (c) when the first step in the implementation of the reportable cross-border arrangement was taken, whichever occurs first.
\n