Revenue Note for Guidance

The content shown on this page is a Note for Guidance produced by the Irish Revenue Commissioners. To view the section of legislation to which the Note for Guidance applies, click the link below:

Revenue Note for Guidance

S508W Assessments for withdrawing relief under Chapter 5

Summary

This section applies where an event occurs that results in the relief claimed under Chapter 5 is subsequently found not to have been due.

Details

(1)(a) Where any relief claimed under Chapter 5 (SURE) is subsequently found not to have been due because -

  1. The company was not a qualifying company,
  2. The investment was not a relevant investment, or
  3. The individual was not a specified person,

(1)(b) Where the relief claimed under Chapter 5 (SURE) is subsequently found to no longer due -

  1. The relief is to be withdrawn by virtue of section 495,
  2. The investment ceases to be a qualifying investment by virtue of section 499,
  3. The amount of relief is subject to a reduction under Chapter 10,
  4. The relief is withdrawn because of section 508L,
  5. A specified individual failed or ceased to hold a relevant employment, or An individual ceased to be a specified individual.

(2) If an event occurs which results in the withdrawal of relief which has been given, the withdrawal is to be achieved by the making of an assessment under Case IV of Schedule D for the year of assessment in which the relief was given (and not for the year in which the event leading to the withdrawal occurred).

(3) Specific rules apply for determining the date from which interest on overdue tax (charged under section 1080) starts to run where a Case IV assessment is made to withdraw relief by reason of an event occurring after the date of the claim. Such interest is to be charged from -

  • The date on which the relief was claimed in the case of relief withdrawn where it was subsequently found not to have been due (subsection (1)(a))
  • The date the agreements, arrangements or understandings where entered into, where relief is withdrawn because within the relevant period the relief is to be withdrawn by virtue of section 495 (subsection (1)(b)(i))
  • The date of the event the happening of which causes the relief to be withdrawn because within the relevant period the investment ceases to be a qualifying investment by virtue of section 499 (subsection (1)(b)(ii))
  • The date of disposal, or the date on which the value was received as the case may be, because within the relevant period the amount of relief is subject to a reduction under Chapter 10 (subsection (1)(b)(iii))
  • The date the relief was granted, where it was determined that the subscription was part of a tax avoidance scheme or arrangement (section 508L) (however, where the relief was granted to an individual, who is taxed under PAYE, the withdrawal will take effect from the 31st December in the tax year in which the relief was granted) (subsection (1)(b)(iv))
  • The date of the event the happening of which causes the relief to be withdrawn because within the relevant period the investor ceases to be a qualifying investor (subsection (1)(b)(v))
  • The date a SURE investor fails or ceases to hold full time employment in the SURE company or where a SURE investor ceases to be a qualifying individual for the purpose of the scheme. (subsection (1)(b)(v) & (vi).

(4) The date on which relief is granted is the date on which the claimant received a repayment of tax or the date on which the inspector issued a notice to the claimant showing that his/her tax liability has been reduced by the relief, as appropriate.

Relevant Date: Finance Act 2021