Revenue Note for Guidance

111AAAD Elections

Summary

Theis section provides instruction with regard to many of the elections which may be made under this Part.

Details

(1) An election, and a withdrawal of an election, referred to in this Part shall be made on a top-up tax information return prepared and delivered in accordance with section 111AAI on or before the specified return date for the fiscal year in respect of which the election or the withdrawal relates.

(2)(a) The elections referred to in column 1 of the Table to this section shall have effect for a period of five fiscal years, (‘the effective period'), commencing on the first day of the fiscal year in respect of which the election is made, and remain in effect for subsequent effective periods, other than where the filing constituent entity withdraws the election on the top-up tax information return in respect of the fiscal year commencing immediately after the end of an effective period.

(2)(b) The withdrawal of an election shall be in effect for an effective period commencing on the first day of the fiscal year (the “withdrawal year”) falling immediately after the last day of the fiscal year in respect of which a previous election was in effect, and a constituent entity shall not make a new election of the type withdrawn in respect of any of the four fiscal years immediately succeeding the withdrawal year.

(3) The elections referred to in column 2 of the Table to this section shall be in effect for the fiscal year in respect of which that election was made and shall remain in effect for subsequent fiscal years, other than where the filing constituent entity withdraws the election in respect of a fiscal year subsequent to the fiscal year in respect of which the election is made.

(4) The election referred to in section 111P(16) in determining the qualifying income or loss shall be made in respect of each debt release which is included in the financial accounting net income or loss of a constituent entity in a fiscal year.

(5) The election referred to in section 111W(2), shall not be withdrawn with respect to an ownership interest, other than a qualified ownership interest as referred to in that section, where a loss in respect of an ownership interest was included in the calculation of the qualifying income or loss of the constituent entity in the five-year period beginning on the first day of the fiscal year in in respect of which the election was made.

(6) An election under section 111AN(6) with regards to the transfer of assets or liabilities shall:

(6)(a) be in effect for the fiscal year in respect of which the election relates,
(6)(b) remain in effect for all subsequent fiscal years, and
(6)(c) not be withdrawn at any time following the fiscal year in respect of which the election is made.

(7) An election under section 111AJ(2) with regards to the transitional CbCR safe harbour shall apply to the fiscal year in respect of which the election is made.

(8) An election under section 111AK(2) with regards to the transitional UTPR Safe Harbour shall apply to the transition period fiscal year in respect of which the election is made.

(8)(A) The election referred to in section 111AKA(7) (Simplified calculations safe harbour) shall be made in respect of each entity to which it relates.

(9) An election under section 111AI(2) with regards to the qualified domestic top-up tax safe harbour shall apply to the fiscal year in respect of which the election is made.

(10) Where a filing constituent entity makes an election referred to in subsection (7), (8), (8A) or (9), such election shall not apply where:

(10)(a) the constituent entity, joint venture or joint venture affiliate is located in the State, and could be allocated a top-up tax if the effective tax rate for the jurisdiction concerned calculated in accordance with Chapter 5 was below the minimum rate, and
(10)(b) the constituent entity, joint venture or joint venture affiliate, fails to clarify and demonstrate, within the permitted 6-month period mentioned in subparagraph (II), that the facts and circumstances, mentioned in subparagraph (I), did not materially affect its eligibility to make the election, where a Revenue Officer in writing:
1. notified the constituent entity, joint venture or joint venture affiliate not later than 36 months after the date of the filing of the top-up tax information return in which the relevant election was made of specific facts and circumstances that may have materially affected the eligibility to make the relevant election, and
2. requested the constituent entity, joint venture or joint venture affiliate to, not later than 6 months after the date of notification under this paragraph, clarify and demonstrate, in writing, the effect of those facts and circumstances on the eligibility to make the relevant election.

Table

Column 1	Column 2
Section 111C(3)	Section 111P(7)(a)
Section 111P(3)(a)	Section 111U(9)
Section 111P (6)(a)	Section 111X(1), in the definition of ‘unclaimed accrual’
Section 111P (9)(a)	Section 111AB(1)(d)
Section 111P (13)	Section 111AE(2)(b)
Section 111P (14)	Section 111AG(1)
Section 111W(2)	Section 111AKA(2) and (7)
Section 111Z(9)	Section 111AS(1)
Section 111AU(1)	Section 111AAAC(2)
Section 111AV(1)	Section 111AAAC(3)
Section 111AAAA(4)(a)(ii)(iii)

Relevant Date: Finance Act 2024