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Taxes Consolidation Act, 1997 (Number 39 of 1997)

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835F Documentation and enquiries.

(1) A relevant person in relation to an arrangement to which section 835C(1) applies shall have available such records as may reasonably be required for the purposes of determining whether, in relation to the arrangement, the income of the person chargeable to tax under Case I or II of Schedule D has been computed in accordance with this Part.

(2) The records referred to in subsection (1) shall be prepared on a timely basis and subsection (3) of section 886 shall apply to such records as it applies to records required by that section.

(3) Sections 900 and 901 shall apply to records referred to in subsection (1) as if they were books, records or documents within the meaning of section 900 and as if the reference to an authorised officer in section 900 were a reference to an authorised officer within the meaning of section 835A(1).

(4) Notwithstanding any other provisions of the Tax Acts, enquiries relating to compliance with this Part may only be initiated by an authorised officer.

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835F Small or medium-sized enterprise.

(1) For the purposes of this section—

Annex” means the Annex to the Commission Recommendation; “medium enterprise” means an enterprise which—

(a) falls within the category of micro, small and medium-sized enterprises as defined in the Annex, and

(b) is not a small enterprise as defined in the Annex;

small enterprise” means a small enterprise as defined in the Annex.

(2) For the purposes of subsection (1), the Annex shall have effect as if—

(a) in the case of an enterprise which is in liquidation or to which an examiner has been appointed under Part 10 of the Companies Act 2014, the rights of the liquidator or examiner (in that capacity) were left out of account when applying Article 3(3)(b) of the Annex in determining for the purposes of this Part whether—

(i) that enterprise, or

(ii) any other enterprise (including that of the liquidator or examiner),

is a small or medium-sized enterprise,

(b) Article 3 of the Annex had effect with the omission of paragraph 5 of that Article,

(c) the first sentence of Article 4(1) of the Annex had effect as if the data to apply to—

(i) the headcount of staff, and

(ii) the financial amounts,

were the data relating to the chargeable period of the enterprise concerned (instead of the period described in the said first sentence of Article 4(1) of the Annex) and calculated on an annual basis, and

(d) Article 4 of the Annex had effect with the omission of the following provisions—

(i) the second sentence of paragraph 1 of that Article,

(ii) paragraph 2 of that Article, and

(iii) paragraph 3 of that Article.

(3) Section 835G shall not apply to a relevant person in a chargeable period if that person is a small enterprise for that chargeable period.

(4) Section 835G shall apply to a relevant person who is a medium enterprise in a chargeable period only in respect of a relevant arrangement.

(5) For the purposes of subsection (4), a relevant arrangement is an arrangement involving a relevant person who is a medium enterprise and—

(a) in a case where the profits or gains or losses arising to the medium enterprise from the relevant activities are within the charge to tax under Schedule D—

(i) the other party to the arrangement is not a [3]>qualifying relevant person<[3][3]>qualifying person<[3], and

(ii) the aggregate consideration accruing to, or payable by, the medium enterprise under the arrangement in the chargeable period exceeds ?1 million,

or

(b) in a case where the arrangement involves the supply or acquisition of an asset, which constitutes a disposal or acquisition, as the case may be, of a chargeable asset for the purposes of the Capital Gains Tax Acts or corporation tax on chargeable gains—

(i) the other party to the arrangement (referred to in this paragraph as the “other person” ) is not resident for the purposes of tax in the State and—

(I) where an asset is supplied to the other person under the arrangement, the asset is not, immediately after its

acquisition by that other person, a chargeable asset, or

(II) where an asset is acquired from the other person under the arrangement, the asset was not, immediately prior to its acquisition by the medium enterprise, a chargeable asset in relation to that other person,

and

(ii) the market value of the asset disposed of or acquired, as the case may be, exceeds ?25 million.

(6) Where section 835G applies to a relevant person who is a medium enterprise, for the purposes of subsection (2) of that section, the medium enterprise shall be required to provide the following information—

(a) a description of the business of the medium enterprise, including its organisational structure, business strategy and key competitors, and

(b) in relation to each relevant arrangement—

(i) a copy of all relevant agreements,

(ii) a description of the transfer pricing method used and the reasons the method was selected, along with evidence to support the price selected as being the arm’s length amount,

(iii) the amount of consideration payable or receivable, as the case may be, under the arrangement, and

(iv) a description of the functions performed, risk assumed and assets employed.

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Inserted by FA10 s42(1). This section applies for chargeable periods beginning on or after 1 January 2011 in relation to any arrangement (within the meaning of s835A(1)) other than any such arrangement the terms of which are agreed before 1 July 2010.

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Substituted by FA19 s27(1). FA19 s27(4) The existing section 835E shall remain in operation and bear the numbering section 835EA until, and, section 835F shall come into operation on, such day and as respect such chargeable periods as the Minister for Finance appoints by order.

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Substituted by FA21 s27(3)(a). Applies for chargeable periods (within the meaning of section 321(2) of the Principal Act) commencing on or after 1 January 2022.