S508I Designated investment funds

(1) The Revenue Commissioners if they see fit, dependent on the circumstances of a specific case, consulting as necessary with those who they deem may be of assistance and subject to the relevant conditions they deem appropriate to attach, may designate an investment fund for the purposes of this Part and such a fund that is so designated is referred to as a “designated fund”.

(2)(a) The Revenue Commissioners can by notice in writing to the managers of a designated investment fund withdraw the designation. The withdrawal of the designation will be published as soon as it can be in Iris Oifigiuil.

(2)(b) On the giving of such a notice, the fund will cease to be a designated fund with respects to any subscriptions made after the date of the notice in Iris Oifigiuil.

(3) The Revenue Commissioners will only designate a fund for the purposes of Part 16 only if they are satisfied that -

• (3)(a) The fund is established under irrevocable trusts, with the sole purpose of investing in qualifying companies, and
• Under the terms of the trusts it is stated that -
  • (3)(b) The entire fund will be invested without undue delay in eligible shares,
  • While awaiting investment of the funds in eligible shares, the moneys received by the fund for the purchase of such shares are to be placed on deposit in a separate account with a bank licensed to transact business in the State,
  • Any amounts received as dividends or interest are subject to a commission in respect of management expenses at a rate not exceeding a rate which shall be specified in the deed of the trust under which the fund has been established and is to be paid without undue delay to the participants,
  • any changes to be made by means of management or other expenses in connection with the establishment, the running, the winding down or the termination of the fund shall be at a rate not exceeding a rate which shall be specified in the deed of trust under which the fund is established,
  • audited accounts of the fund are submitted annually to the Revenue Commissioners as soon as may possible after the end of each period for which accounts of the fund are made up,
  • the managers, trustees of the fund and any of the associates are not for the time being connected either directly or indirectly with any company whose shares comprise part of the fund,
  • any discounts on eligible shares received by the trustees or managers of the fund are accepted solely for the benefit of the participants,
  • if a limit is placed on the size of the fund or a minimum amount for investment is stipulated, any subscriptions not accepted are to be returned without undue delay, and
  • no participant is allowed to have any shares in any company in which the fund has invested transferred in his/her own name until 4 years have elapsed from the date of the issues of the shares to the fund.

Relevant Date: Finance Act 2021