111AAAA.  Use of currency

(1) In this section—

“rate of exchange” has the same meaning as it has in section 79;

“representative rate of exchange” has the same meaning as it has in section 402.

(2) (a) For the purposes of determining IIR top-up tax or UTPR top-up tax of a constituent entity of an MNE group or large-scale domestic group, all calculations shall be made using the presentation currency of the consolidated financial statements of the ultimate parent entity of the MNE group or large-scale domestic group.

(b) If an amount that is relevant to the calculation of IIR top-up tax or UTPR top-up tax of a constituent entity of an MNE group or large-scale domestic group for a fiscal year is denominated in a currency other than the presentation currency of the consolidated financial statements of the ultimate parent entity of the MNE group (referred to in this paragraph as the ‘relevant presentation currency’) and is not converted to the relevant presentation currency in the course of preparing the consolidated financial statements, that amount is to be converted to the relevant presentation currency using the foreign currency translation principles of the financial accounting standard that would have been used to convert the amount to the relevant presentation currency if that conversion were undertaken in the course of preparing the consolidated financial statements.

(3) For the purposes of determining if any materiality or other threshold in this Part that is denominated in euro is satisfied or exceeded by an amount in respect of a group, entity or jurisdiction for a particular fiscal year, if the amount is denominated in another currency, the amount is to be converted from that currency to euro using the average of the daily rates of exchange, in respect of the two currencies for the month of December included in the fiscal year immediately preceding the particular fiscal year, as quoted by—

(a) the European Central Bank,

(b) the Central Bank of Ireland, where the European Central Bank does not quote such a rate of exchange, or

(c) an equivalent institution which manages that other currency, where both the European Central Bank and the Central Bank of Ireland do not quote such a rate of exchange.

(4) (a) Where, for the purposes of determining the domestic top-up tax of a qualifying entity which is a member of a group, the financial accounting net income or loss of that qualifying entity for a fiscal year is determined in accordance with a local accounting standard pursuant to section 111AAD(2)(e) then if—

(i) all of the qualifying entities of the MNE group, large-scale domestic group or joint venture group, as the case may be, located in the State have financial statements prepared in accordance with a local accounting standard with a euro functional currency, then for the purposes of determining the domestic top-up tax of that qualifying entity, all calculations shall be made using the euro, or

(ii) subparagraph (i) does not apply, then for the purposes of determining the domestic top-up tax of that qualifying entity, the filing constituent entity may elect, in accordance with section 111AAAD, that all calculations of the qualifying entities in the group are made using either—

(I) the presentation currency of the consolidated financial statements of the ultimate parent entity, or

(II) the euro,

using the currency translation rules under the local accounting standard.

(b) Where, for the purposes of determining the domestic top-up tax of a qualifying entity which is a member of a group, the financial accounting net income or loss of a constituent entity for a fiscal year is not determined in accordance with a local accounting standard pursuant to section 111AAD(2)(e) then for the purposes of determining the domestic top-up tax of a qualifying entity all calculations shall be made using the presentation currency of the consolidated financial statements of the ultimate parent entity of the MNE group or large-scale domestic group, using the currency translation rules under that financial accounting standard.

(c) For the purposes of determining the domestic top-up tax of a qualifying entity which is not a member of a group, all calculations shall be made using the presentation currency of its qualifying financial statements.

(5) (a) Every entity that is required under this Part to pay an amount to the Revenue Commissioners shall pay the amount in the currency of the State.

(b) If an amount payable by an entity for a fiscal year under this Part would, in the absence of this subsection, be denominated in a currency other than the currency of the State, that amount is to be converted to the currency of the State using the average representative rates of exchange of that other currency for currency of the State for the fiscal year or accounting period.