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(1) (a)In this section—

“investment limited partnership” means an investment limited partnership within the meaning of the Investment Limited Partnerships Act 1994;

“relevant losses” means, in relation to an investment limited partnership—

(i) any losses sustained by the investment limited partnership, being losses which would constitute an allowable loss in the hands of a person resident in the State including losses which would so constitute allowable losses if all assets concerned were chargeable assets and no exemption from capital gains tax applied, to the extent that such losses exceed any relevant gains, and

(ii) any losses or deficiencies sustained by the investment limited partnership, being losses or deficiencies which if they arose to an individual resident in the State would in the hands of the individual constitute losses for the purposes of income tax, to the extent that such losses or deficiencies exceed any relevant income,

as appropriate.

(b) For the purpose of this section the definitions of ‘relevant gains’, ‘relevant income’ and ‘relevant payment’ in section 739B(1) shall apply to an investment limited partnership as they apply to an investment undertaking—

(i) as if references to ‘unit’ and ‘unit holder’ were references to ‘partnership interest’ and ‘partner’, respectively, in each place where they occur, and

(ii) with any other necessary modifications.

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(2) (a) Notwithstanding anything in the Acts and subject to subsection (3), an investment limited partnership shall not—

(i) be chargeable to tax in respect of relevant gains, relevant income or a relevant payment, or

(ii) be entitled to accrue relevant losses.

(b) For the purposes of the Acts, relevant income, relevant gains and relevant losses, as the case may be, in relation to an investment limited partnership shall be treated as arising, or, as the case may be, accruing, to each partner of the investment limited partnership in accordance with the apportionment of such relevant income, relevant gains or relevant losses under the terms of the partnership agreement, as if the relevant income, relevant gains or relevant losses had arisen or, as the case may be, accrued, to the partner in the investment limited partnership without passing through the hands of the investment limited partnership.

(c) Where for any period the aggregate of the respective amounts (in this paragraph referred to as the ‘aggregate’) of the relevant income and relevant gains which under paragraph (b) are taken as arising or accruing to each partner in the investment limited partnership is less than the full amount of the relevant income and relevant gains arising or accruing to the investment limited partnership for that period, then the amount of the difference (in this paragraph referred to as the ‘balance’) between that full amount and the aggregate shall be treated as arising or accruing to the general partner, and where there is more than one general partner then the balance shall be apportioned between the general partners in equal shares.

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(c) specifies in respect of the investment limited partnership—

(i) the business undertaken by the investment limited partnership, namely those activities involving the assets of the investment limited partnership used to generate the relevant gains, relevant income and relevant payments of the investment limited partnership which, in accordance with subsection (2)(a), are not chargeable to tax, including, but not limited to, activities which would be regarded as material to the operation of the investment limited partnership, and

(ii) the net asset value of the investment limited partnership.

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(3A) Where the partners of the investment limited partnership—

(a) make an incorrect or incomplete statement under subsection (3), or

(b) fail, without reasonable excuse to make such a statement,

then those partners shall be liable to a penalty of €3,000.

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