Revenue Note for Guidance

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Revenue Note for Guidance

111B Principles for construing rules in accordance with OECD Pillar Two guidance

Summary

This section sets out the principles for construing rules in accordance with OECD Pillar Two guidance.

Details

Definitions

(1) The section contains a series of definitions, including —

“Minister” means the Minister for Finance.

“OECD Pillar Two guidance” means the following:

  1. the document entitled OECD (2022), Tax Challenges Arising from the Digitalisation of the Economy – Commentary to the Global Anti-Base Erosion Model Rules (Pillar Two), First Edition: Inclusive Framework on BEPS, OECD Publishing, Paris published by the OECD on 14 March 2022,
  2. the document entitled OECD (2024), Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two) Examples, OECD, Paris, published by the OECD on 25 April 2024,
  3. the document entitled OECD (2022), Safe Harbours and Penalty Relief: Global Anti-Base Erosion Rules (Pillar Two), OECD/G20 Inclusive Framework on BEPS, OECD, Paris published by the OECD on 20 December 2022,
  4. the document entitled OECD (2023), Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), OECD/G20 Inclusive Framework on BEPS, OECD, Paris published by the OECD on 2 February 2023,
  5. the document entitled OECD (2023), Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), OECD/G20 Inclusive Framework on BEPS, OECD, Paris published by the OECD on 17 July 2023,
  6. the document entitled OECD (2023), Tax Challenges Arising from the Digitalisation of the Economy – GloBE Information Return (Pillar Two), OECD/G20 Inclusive Framework on BEPS, OECD, Paris published by the OECD on 17 July 2023, and
  7. such additional subsequent guidance published by the OECD, as may be designated by order made under subsection (3) by the Minister for the purposes of this Part.

General

(2) For the purpose of calculating and administering, in respect of any fiscal year or accounting period, the IIR top-up tax, UTPR top-up tax or domestic top-up tax for a constituent entity or qualifying entity, as the case may be, this Part shall be construed so as to ensure, as far as practicable, consistency between the following:

  • (2)(a) the effect which is to be given to this Part, and
  • (2)(b) the effect which would be given if the OECD Model Rules were to be applied, in accordance with the OECD Pillar Two guidance, to the calculation and administration of those taxes,

other than where such an application of this section would be inconsistent with the Directive.

(3) The Minister for Finance may by order designate any additional subsequent guidance referred to in paragraph (g) of subsection (1) as being comprised in the OECD Pillar Two guidance.

(4) Every order made by the Minister for Finance shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

To date, two Ministerial Orders have been published in accordance with subsection (3) being the Taxes Consolidation Act 1997 (Section 111B(3)) Order 2023 (S.I. No. 675/2023) and the Taxes Consolidation Act 1997 (Section 111B(3)) Order 2024 (S.I. No.551/2024).

Relevant Date: Finance Act 2024