Taxes Consolidation Act, 1997 (Number 39 of 1997)
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505 Information.
[FA84 s24(1) to (8)]
(1) Where an event occurs by reason of which any relief given to an individual is to be withdrawn by virtue of section 493, 498 or 499, the individual shall within 60 days of coming to know of the event give a notice in writing to the inspector containing particulars of the event.
(2) Where an event occurs by reason of which any relief in respect of any shares in a company is to be withdrawn by virtue of section 495, 496, 499, 500, 501 or 502—
(a) the company, and
(b) any person connected with the company who has knowledge of that matter,
shall within 60 days of the event or, in the case of a person within paragraph (b), of that person coming to know of it, give a notice in writing to the inspector containing particulars of the event or payment.
(3) Where the inspector has reason to believe that a person has not given a notice which the person is required to give under subsection (1) or (2) in respect of any event, the inspector may by notice in writing require that person to furnish him or her within such time (not being less than 60 days) as may be specified in the notice with such information relating to the event as the inspector may reasonably require for the purposes of this Part.
(4) Where relief is claimed in respect of shares in a company and the inspector has reason to believe that it may not be due by reason of any arrangement or scheme mentioned in section 493(11), 495(10) or 502, the inspector may by notice in writing require any person concerned to furnish him or her within such time (not being less than 60 days) as may be specified in the notice with—
(a) a declaration in writing stating whether or not, according to the information which that person has or can reasonably obtain, any such arrangement or scheme exists or has existed, and
(b) such other information as the inspector may reasonably require for the purposes of the provision in question and as that person has or can reasonably obtain.
(5) References in subsection (4) to the person concerned are, in relation to sections 493(11) and 502, references to the claimant and, in relation to sections 495(10) and 502, references to the company and any person controlling the company.
(6) Where relief has been given in respect of shares in a company—
(a) any person who receives from the company any payment or asset which may constitute value received (by that person or another) for the purposes of section 499 or 501(5), and
(b) any person on whose behalf such a payment or asset is received,
shall, if so required by the inspector, state whether the payment or asset received by that person or on that person’s behalf is received on behalf of any person other than that person and if so the name and address of that other person.
(7) Where relief has been claimed in respect of shares in a company, any person who holds or has held shares in the company and any person on whose behalf any such shares are or were held shall, if so required by the inspector, state whether the shares which are or were held by that person or on that person’s behalf are or were held on behalf of any person other than that person and if so the name and address of that other person.
(8) No obligation as to secrecy imposed by statute or otherwise shall preclude the inspector from disclosing to a company that relief has been given or claimed in respect of a particular number or proportion of its shares.
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505 Application to subsidiaries.
(1) A qualifying company may in the relevant period have one or more subsidiaries if—
(a) the conditions set out in subsection (2) are satisfied in respect of the subsidiary or each subsidiary and, except where provided in subsection (3), continue to be so satisfied until the end of the relevant period, and
(b) the subsidiary or each subsidiary is a company—
(i) to which section 494(3)(a)(i) relates, or
(ii) which exists solely for the purpose of carrying on any trade which consists solely of any one or more of the following relevant trading activities—
(I) the purchase of goods or materials for use by the qualifying company or its subsidiaries,
(II) the sale of goods or materials produced by the qualifying company or its subsidiaries, or
(III) the rendering of services to or on behalf of the qualifying company or its subsidiaries.
(2) The conditions referred to in subsection (1)(a) are—
(a) that the subsidiary is a 51 per cent subsidiary of the qualifying company,
(b) that no other person has control of the subsidiary within the meaning of section 11, and
(c) that no arrangements are in existence by virtue of which the conditions in paragraphs (a) and (b) could cease to be satisfied.
(3) The conditions referred to in subsection (1)(a) shall not be regarded as ceasing to be satisfied by reason only of the fact that the subsidiary or the qualifying company is wound up or dissolved without winding up if—
(a) it is shown that the winding up or dissolution is for bona fide commercial reasons and not part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax, and
(b) the net assets, if any, of the subsidiary or, as the case may be, the qualifying company are distributed to its members before the end of the relevant period or, in the case of a winding up, the end (if later) of 3 years from the commencement of the winding up.
(4) Where a qualifying company has one or more subsidiaries in the relevant period, this Part shall apply subject to Schedule 10.
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505. Specified individuals
(1) In this Part, a specified individual is an individual who subscribes on his or her own behalf for eligible shares in a qualifying company and complies with this section.
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(2) The individual, in each of the 3 years of assessment preceding the year of assessment that precedes the year of assessment in which that individual makes a relevant investment (being that individual’’s first such investment), shall not have been in receipt of income chargeable to tax otherwise than under——
(a) Schedule E, or
(b) Case III of Schedule D in respect of profits or gains from an office or employment held or exercised outside the State,
in excess of the lesser of——
(i) the aggregate of the amounts, if any, of that individual’’s income chargeable to tax under Schedule E and under Case III of Schedule D in respect of the profits or gains referred to in paragraphs (a) and (b), and
(ii) €€50,000.
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(2) The individual, in each of the 3 years of assessment preceding the year of assessment that precedes the year of assessment in which that individual makes a relevant investment (being that individual’s first such investment), may have been in receipt of income other than income chargeable to tax under—
(a) Schedule E, or
(b) Case III of Schedule D in respect of profits or gains from an office or employment held or exercised outside the State,
not in excess of the lesser of—
(i) the aggregate of the amounts, if any, of that individual’s income chargeable to tax under Schedule E and Case III of Schedule D in respect of the profits or gains referred to in paragraphs (a) and (b), and
(ii) €50,000.
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(3) (a) The individual shall throughout the specified period possess at least 15 per cent of the issued ordinary share capital of the company in which that individual makes a relevant investment.
(b) An individual shall not be regarded as having ceased to comply with this subsection merely by reason of the fact that the company in which the individual makes a relevant investment is wound up, or dissolved without winding up, before the end of the relevant period but only if it is shown that the winding up or dissolution is for bona fide commercial reasons and is not part of a scheme or arrangement the main purpose or one of the main purposes of which was the avoidance of tax.
(4) (a) For the purposes of paragraph (b) and subsections (5) and (6), ‘specified date’, in relation to a relevant investment in a company, means—
(i) where the investment consists of the subscription of only one amount for eligible shares, the date of that subscription, or
(ii) where that investment consists of the subscription of more than one amount for eligible shares, the date of the last such subscription.
(b) Subject to subsections (5) and (6), the individual at the specified date, in relation to that individual’s first relevant investment in a company, or within the period of 12 months immediately preceding that date, either directly or indirectly, shall not possess or have possessed, or shall not be or have been entitled to acquire, more than 15 per cent of—
(i) the issued ordinary share capital,
(ii) the loan capital (within the meaning of section 500(5)(b)) and the issued share capital, or
(iii) the voting power, of any company other than—
(I) the company in which that individual makes that relevant investment, or
(II) a company to which subsection (5) applies.
(5) This subsection applies to a company which during a period of 3 years ending on the specified date in relation to an individual’s first relevant investment in a company—
(a) was not entitled to any assets, other than cash on hand or a sum of money on deposit (within the meaning of section 895) not exceeding €130,
(b) did not carry on a trade, profession, business or other activity including the making of investments, and
(c) did not pay charges on income within the meaning of section 243.
(6) (a) For the purposes of paragraph (b) “‘accounting period’” means an accounting period determined in accordance with section 27.
(b) A company shall be regarded as a company which carries on wholly or mainly relevant trading activities referred to in paragraph (c)(i) only if in each of the 3 accounting periods referred to in paragraph (c)(ii) the total amount receivable from sales made or services rendered in the course of such activities is not less than 75 per cent of the total amount receivable by the company from all sales made and services rendered in the course of tourist traffic undertaking and 90 per cent of the total amount receivable by the company from all sales made and services rendered in the course of other relevant trading activities.
(c) An individual shall not be regarded as failing to satisfy the requirements of subsection (4) merely by reason of the fact that the individual does not satisfy those requirements in relation to only one company (other than the company in which the individual makes his or her first relevant investment or a company to which subsection (5) applies)—
(i) which exists wholly or mainly for the purpose of carrying on relevant trading activities, and
(ii) where the total amount receivable by that company from sales made and services rendered in the course of that company’s relevant trading activities did not exceed €€127,000 in each of that company’s 3 accounting periods immediately preceding the accounting period of that company in which the specified date occurs in relation to that individual’s first relevant investment.
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Substituted by FA11 s33(1)(a). Has effect in respect of shares issued on or after 25 November 2011. Note: FA 12 s26 (2) amends FA 11 s33 and provides: (b) This section does not have effect in respect of shares issued before 25 November 2011 and, for all the purposes of Part 16 in connection with those shares, the Principal Act has effect as if this section had not been enacted. (c) This section does not have effect in respect of shares issued on or after 25 November 2011 and on or before 31 December 2011 where— (i) the company issuing the shares, or (ii) where the shares are acquired by an investment fund, the fund acquiring the shares, elects by notice in writing to the Revenue Commissioners on or before 31 December 2011 that, for all the purposes of Part 16 in connection with those shares, the Principal Act has effect as if this section had not been enacted.
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Substituted by FA18 s25(1). Has effect as respects shares issued on or after 1 January 2019.