739O Tax arising on IREF taxable event

(1) In this section a “holder of excessive rights” means a ^[4]>[5]>[2]>person^{<[2]<[4]<[5][4]>[5]>[2]>}person, or connected persons within the meaning of section 10^<[2]<[4]<[5], who is beneficially entitled, directly or indirectly, to at least 10 per cent of the units in an IREF.

(2) Notwithstanding any other provision of the Tax Acts—

(a) for the purposes of affording relief under an arrangement made with the government of a territory outside the State having the force of law under the procedures set out in section 826(1), the IREF taxable amount in respect of an IREF taxable event and a unit holder—

(i) who is a holder of excessive rights, is income from immovable property, and

(ii) who is not a holder of excessive rights, shall be treated as a dividend,

(b) in respect of a ^[3]>unit holder^<[3][3]>unit holder who is a specified person^<[3], the IREF taxable amount shall be chargeable to income tax under Case V of Schedule D and shall be treated as income—

(i) arising in the year of assessment in which the IREF taxable event occurs, and

(ii) against which no loss, deficit, expense or allowance may be set off,

(c) to the extent to which profits or gains of a basis period for a year of assessment consist of profits or gains to which paragraph (b) applies, those profits or gains—

(i) shall be chargeable to income tax for that year, subject to section 739Q, at the rate of 20 per cent, and

(ii) shall not be reckoned in computing total income for that year for the purposes of the Income Tax Acts,

and

(d) the provisions of section 188, and the reductions specified in Part 2 of the Table to section 458 shall not apply as regards income tax so charged.