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Taxes Consolidation Act, 1997 (Number 39 of 1997)

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739H Investment undertakings: reconstructions and amalgamations.

(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.

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(1A) For the purposes of subsection (1) a reference in the definition of “exchange” to an investment undertaking includes a reference to a sub-fund of an umbrella scheme where the exchange concerned is between 2 or more sub-funds of different umbrella schemes.

(1B) Subsection (1A) shall not apply unless the exchange concerned is effected for bona fide commercial reasons and not primarily for the purpose of avoiding liability to taxation.

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(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.

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(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, and the date of, the acquisition of the new units shall for the purposes of this Chapter be the amount invested by the unit holder for, and the date of, the acquisition of the old units.

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(3) (a) This section applies to a scheme for the reconstruction of a common contractual fund or funds (within the meaning of section 739I(1)(a)(i)) or to the amalgamation of 2 or more such funds as it would apply to a scheme of reconstruction or amalgamation if “investment undertaking” included a common contractual fund within the meaning of section 739I(1)(a)(i).

(b) For the purposes of this subsection the definitions of “investment undertaking”, “unit” and “unit holder” shall apply, with any necessary modifications, to a common contractual fund within the meaning of section 739I(1)(a)(i) as they apply to an investment undertaking within the meaning of paragraph (b) of the definition of “investment undertaking”.

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Inserted by FA00 s58(a).

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Inserted by FA06 s45(a).

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Inserted by FA08 s39(1)(e)(i). Applies and has effect as respects any exchange (within the meaning of section 739H(1)) in relation to a scheme of reconstruction or amalgamation occurring on or after 13 March 08.

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Substituted by FA08 s39(1)(e)(ii). Applies and has effect as respects any exchange (within the meaning of section 739H(1)) in relation to a scheme of reconstruction or amalgamation occurring on or after 13 March 08.