An update to the Tax and Duty Manual Part 13-01-02 – Close companies: Interpretation and general – confirms a company will not be treated as a close company solely because of the migration of Irish securities from the CREST system to Euroclear Bank in March 2021.

A wide interpretation of the provisions contained in Part 13 TCA 1997 could mean a Central Securities Depository (CSD) or its nominee company falls within the definition of “participator” in section 433(1) TCA 1997, as a result of the migration.

Revenue has agreed that the CSD or its nominee company would not be considered a participator; a company that did not previously fall within the Part 13 provisions will not be considered to fall within these provisions, solely as a result of the securities migration.

See eBrief No. 026/21 for further details.