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Taxes Consolidation Act, 1997 (Number 39 of 1997)

[1]>

896Returns in relation to material interest in offshore funds.

[FA92 s230A; FA95 s41]

(1) In this section—

material interest” shall be construed in accordance with section 743(2);

offshore fund” has the meaning assigned to it by section 743(1), but a relevant UCITS within the meaning of section 893(1) shall not be an offshore fund.

(2) As respects a material interest in an offshore fund, section 895 shall apply with any necessary modifications where it would not otherwise apply—

(a) to every person carrying on in the State a trade or business in the ordinary course of the operations of which such person acts as an intermediary in or in connection with the acquisition of such an interest, in the same manner as it applies to every intermediary within the meaning of that section, and

(b) to a person resident or ordinarily resident in the State who acquires such an interest in the same manner as it applies to a person resident in the State opening an account in which a deposit which such person beneficially owns is held at a location outside the State,

as if in that section—

(i) references to a deposit were references to any payment made by a person resident or ordinarily resident in the State in acquiring a material interest in an offshore fund,

(ii) references to a foreign account were references to such an interest,

(iii) references, however expressed, to the opening of a foreign account were references to the acquisition of such an interest, and

(iv) references to a relevant person were references to an offshore fund.

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[1]>

896 Returns in relation to certain offshore products.

(1) In this section—

appropriate inspector”, in relation to an intermediary, means—

(a) the inspector who has last given notice in writing to the intermediary, that he or she is the inspector to whom the intermediary is required to deliver the return specified in subsection (2),

(b) where there is no such inspector as is referred to in paragraph (a), the inspector to whom it is customary for the intermediary to deliver a return or statement of income or profits, or

(c) where there is no such inspector as is referred to in paragraphs (a) or (b), [7]>the inspector of returns specified in section 950<[7][7]>the inspector of returns<[7];

chargeable period” has the same meaning as in section 321(2);

foreign life policy” means a policy of assurance on the life of a person commenced—

(a) by a branch or agency (carrying on business in a State other than the State) of an assurance company, or

(b) by an assurance company (carrying on business in a State other than the State) other than by its branch or agency carrying on business in the State;

intermediary” means any person carrying on in the State a trade or business in the course of operations of which that person provides relevant facilities;

“material interest” shall be construed in accordance with section 743(2);

offshore fund” has the meaning assigned to it by section 743(1);

offshore product” means—

(a) a material interest in an offshore fund, or

(b) a foreign life policy;

relevant facilities” means—

(a) the marketing in the State of offshore products,

(b) the acting in the State as an intermediary in relation to the acquisition or disposal, in whole or in part, of offshore products by or on behalf of persons who are resident or ordinarily resident in the State, or

(c) the provision in the State of facilities for the making of payments from an offshore product to persons who are entitled to the offshore product, whether on the disposal, in whole or in part of the offshore product, or otherwise;

specified return date for the chargeable period”, in relation to a chargeable period, has the meaning assigned to it by section 895(1);

tax reference number” in relation to a person has the meaning assigned to it by section 885 in relation to a specified person within the meaning of that section.

(2) Every intermediary shall as respects a chargeable period prepare and deliver to the appropriate inspector on or before the specified return date for the chargeable period a return specifying in respect of every person in respect of whom that intermediary has acted in the chargeable period as an intermediary—

(a) the full name and permanent address of the person,

(b) the person’s tax reference number,

(c) a description of the relevant facilities provided, including a description of the offshore product concerned and the name and address of the person who provided the offshore product, and

(d) details of all payments made (directly or indirectly) by or to the person in respect of the offshore product.

(3) Where an intermediary fails—

(a) for any chargeable period to make a return required to be made by the intermediary in accordance with subsection (2),

(b) to include in such a return for a chargeable period details of any person to whom the intermediary provided relevant facilities in the chargeable period, or

(c) to take reasonable care to confirm the details of the kind referred to in subsection (2) furnished to the intermediary by a person to whom the intermediary has provided relevant facilities in the chargeable period,

the intermediary shall in respect of each such failure be liable to a penalty of [2]>£1,500<[2][3]>[2]>€1,900<[2]<[3][3]>€4,000<[3].

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(4) Where a person fails—

(a) to furnish details of the kind referred to in subsection (2) to an intermediary who has provided the person with relevant facilities, or

(b) knowingly or wilfully furnishes that intermediary with incorrect details of that kind,

the person shall be liable to a penalty of [2]>£1,500<[2] [2]>€1,900<[2].

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(4) Where a person—

(a) fails to furnish details of the kind referred to in subsection (2) to an intermediary who has provided the person with relevant facilities, or

(b) furnishes that intermediary with incorrect details of that kind,

the person shall be liable to a penalty of €4,000.”,

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(5) Where in any chargeable period a person acquires an offshore product to which section 730I or 747C (inserted by the Finance Act, 2001) does not relate, the person shall, notwithstanding anything to the contrary in [5]>section 950 or 1084<[5][5]>Part 41A or section 1084<[5], be deemed for that chargeable period to be a chargeable person for the purposes of [6]>sections 951 and 1084<[6][6]>Chapter 3 of Part 41A and section 1084<[6], and the return of income to be delivered by the person for that chargeable period shall include the following particulars—

(a) the name and address of the offshore fund or, as the case may be, the person who commenced the life policy,

(b) a description, including the cost to the person, of the material interest acquired or, as the case may be, a description of the terms of the life policy including premiums payable, and

(c) the name and address of the person through whom the offshore product was acquired.

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[1]

[-] [+]

Substituted by FA01 s232(1)(d). Applies as respects any chargeable period commencing on or after 15 February 2001.

[2]

[-] [+] [-] [+]

Substituted by FA01 s232(3)(a)(ii). Applies as on and from 1 January 2002.

[3]

[-] [+]

Substituted by F(No.2)A08 sched5(part2)(1)(m)(i). The enactments specified in Schedule 5 are amended or repealed to the extent and manner specified in that Schedule and, unless the contrary is stated, shall come into effect after 24 December 2008.

[4]

[-] [+]

Substituted by F(No.2)A08 sched5(part2)(1)(m)(ii). The enactments specified in Schedule 5 are amended or repealed to the extent and manner specified in that Schedule and, unless the contrary is stated, shall come into effect after 24 December 2008.

[5]

[-] [+]

Substituted by FA12 sched4(part2)(g).

[6]

[-] [+]

Substituted by FA12 sched4(part2)(g).

[7]

[-] [+]

Substituted by FA12 sched5(1)(l).