Taxes Consolidation Act, 1997 (Number 39 of 1997)
617 Transfers of assets, other than trading stock, within group.
[CTA76 s130]
[1]>
(1) Notwithstanding any provision in the Capital Gains Tax Acts fixing the amount of the consideration deemed to be received on a disposal or given on an acquisition, where a member of a group of companies disposes of an asset to another member of the group, both members shall, except where provided by subsections (2) and (3), be treated, in so far as relates to corporation tax on chargeable gains, as if the asset acquired by the member to whom the disposal is made were acquired for a consideration of such amount as would secure that on the other member’s disposal neither a gain nor a loss would accrue to that other member; but, where it is assumed for any purpose that a member of a group of companies has sold or acquired an asset, it shall be assumed also that it was not a sale to or acquisition from another member of the group.
<[1]
[1]>
(1) Notwithstanding any provision in the Capital Gains Tax Acts fixing the amount of the consideration deemed to be received on a disposal or given on an acquisition, where—
(a) a member of a group of companies disposes of an asset to another member of the group,
(b) the company making the disposal is resident in the State at the time of the disposal or the asset is a chargeable asset in relation to that company immediately before that time, and
[2]>
(c) the other company is resident in the State at the time of the disposal or the asset is a chargeable asset in relation to that company immediately after that time,
<[2]
[2]>
(c) the other company—
(i) is resident in the State at the time of the disposal or the asset is a chargeable asset in relation to that company immediately after that time, and
[5]>
(ii) is not an authorised investment company (within the meaning of Part XIII of the Companies Act 1990) that is an investment undertaking (within the meaning of section 739B),
<[5]
<[2]
[5]>
(ii) is not—
(I) an authorised investment company (within the meaning of [10]>Part XIII of the Companies Act 1990<[10][10]>Part 24 of the Companies Act 2014<[10]) that is an investment undertaking (within the meaning of [6]>section 739B), or<[6][6]>section 739B),<[6]
(II) a Real Estate Investment Trust (within the meaning of section 705A) or a member of a group Real Estate Investment Trust (within the meaning of [7]>section 705A),<[7][7]>section 705A), or<[7]
<[5]
[8]>
(III) an authorised ICAV (within the meaning of section 2 of the Irish Collective Asset-management Vehicles Act 2015 (No. 2 of 2015)),
<[8]
both members shall, except where provided by [3]>subsections (2) and (3)<[3][3]>subsections (2), (3) and (4)<[3], be treated, in so far as relates to corporation tax on chargeable gains, as if the asset acquired by the member to whom the disposal is made were acquired for a consideration of such amount as would secure that on the other member’s disposal neither a gain nor a loss would accrue to that other member; but, where it is assumed for any purpose that a member of a group of companies has sold or acquired an asset, it shall be assumed also that it was not a sale to or acquisition from another member of the group.
<[1]
(2) Subsection (1) shall not apply where the disposal is—
(a) a disposal of a debt from a member of a group of companies effected by satisfying the debt or part of it, or
(b) a disposal of redeemable shares in a company on the occasion of their redemption,
and the reference in that subsection to a member of a group of companies disposing of an asset shall not apply to anything which under section 583 is to be treated as a disposal of an interest in shares in a company in consideration for a capital distribution (within the meaning of that section) from that company, whether or not involving a reduction of capital.
(3) For the purposes of subsection (1), in so far as the consideration for the disposal consists of money or money’s worth by means of compensation for any kind of damage or injury to assets, or for the destruction or dissipation of assets or for anything which depreciates or might depreciate an asset, the disposal shall be treated as being to the person who, whether as an insurer or otherwise, ultimately bears the burden of furnishing that consideration.
[4]>
(4) Where a member of a group of companies disposes of a specified intangible asset within the meaning of section 291A to another member of the group, subsection (1) shall not apply to the disposal of that asset where the companies jointly so elect by giving notice, not later than 12 months from the end of the accounting period in which the other member of the group acquired the asset, to the Collector-General in such manner as the Revenue Commissioners may require.
<[4]
[9]>
(5) For the purposes of this section, a ‘group of companies’ shall include only companies which, by virtue of the law of a relevant Member State or other territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, are resident for the purposes of tax in such Member State or territory, as the case may be, and for this purpose ‘tax’, in relation to a relevant Member State or such territory, other than the State, means any tax imposed in the Member State or territory which corresponds to corporation tax in the State.
<[9]
[1]
Substituted by FA01 s38(1)(c). Applies as respects a disposal on or after 15 February 2001.
[2]
Substituted by FA08 s42(1)(b). Applies as respects a transfer, or as the case may be a disposal, on or after 18 February 2008.
[3]
Substituted by FA09 s13(1)(f). Applies to expenditure incurred by a company after 7 May 2009.
[5]
Substituted by FA14 s29(1)(a). Applies as respects any disposal on or after 23 October 2014.