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7 1976

CORPORATION TAX ACT, 1976

FOURTH SCHEDULE

Section 166

PART I

Amendment of Enactments concerning Double Taxation Relief

Number and Year

Short Title

Amendment

(1)

(2)

(3)

No. 6 of 1967

Income Tax Act, 1967 .

In section 355, there shall be added the following subsection—

“(5) Nothing in this section or in Schedule 6, Part II, applies for the purposes of corporation tax.”.

In section 361 (1), for “corporation profits tax” there shall be substituted “corporation tax”, and the said section 361 (1), as so amended, is set out in the following Table.

TABLE

(1) If the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of income tax or corporation tax and any taxes of a similar character, imposed by the laws of the State or by the laws of that territory, and that it is expedient that those arrangements should have the force of law, then, subject to the provisions of this Part, the arrangements shall, notwithstanding anything in any enactment, have the force of law.

In paragraph 1 (1) of Schedule 10, the definition of “income” shall be deleted and in the definition of “the Irish taxes” for “corporation profits tax” there shall be substituted “corporation tax”, and the said paragraph 1 (1), as so amended, is set out in the following Table.

TABLE

(1) In this Schedule, except where the context otherwise requires—

arrangements” means arrangements for the time being in force by virtue of section 361, or of section 12 of the Finance Act, 1950, or of section 14 of the Finance Act, 1955;

the Irish taxes” means income tax and corporation tax;

foreign tax” means, in relation to any territory in regard to which arrangements have the force of law, any tax chargeable under the laws of that territory for which credit may be allowed under the arrangements.

In paragraph 2 of Schedule 10, the following subparagraph shall be substituted for subparagraph (2)—

“(2) In the case of any income within the charge to corporation tax, the credit shall be applied in reducing the corporation tax chargeable in respect thereof.”.

In paragraph 3 (2) of Schedule 10, after “income tax for any year of assessment”, there shall be inserted “or corporation tax for any accounting period”; and after “that year” there shall be inserted “or accounting period”, and the said paragraph 3 (2), as so amended, is set out in the following Table.

TABLE

(2) Credit shall not be allowed against income tax for any year of assessment or corporation tax for any accounting period unless the person in respect of whose income the tax is chargeable is resident in the State for that year or accounting period.

In paragraph 4 of Schedule 10, for “corporation profits tax” there shall be substituted “corporation tax”, and the said paragraph 4, as so amended, is set out in the following Table.

TABLE

4. The amount of the credit to be allowed against corporation tax for foreign tax in respect of any income shall not exceed the corporation tax attributable to that income.

In paragraph 5 (3) of Schedule 10, for “or section 35 of the Finance Act, 1968 ” there shall be substituted “or section 163 of the Corporation Tax Act, 1976”, and the said paragraph 5 (3), as so amended, is set out in the following Table.

TABLE

(3) Where credit for foreign tax falls to be allowed in respect of any income and any relief would, but for the provisions of this subparagraph, fall to be allowed in respect of that income under section 365 or section 163 of the Corporation Tax Act, 1976, the said relief shall not be allowed.

In paragraph 8 (1) of Schedule 10, after “purposes of income tax”, there shall be inserted “or corporation tax”, and the said paragraph 8 (1), as so amended, is set out in the following Table.

TABLE

(1) Where credit for foreign tax falls to be allowed against any of the Irish taxes in respect of any income, the following provisions of this paragraph shall have effect as respects the computation, for the purposes of income tax or corporation tax, of the amount of that income.

In paragraph 8 (2) of Schedule 10, after “where the income tax”, there shall be inserted “or corporation tax”; and after “against income tax” there shall be inserted “or corporation tax, as the case may be”, and the said paragraph 8 (2), as so amended, is set out in the following Table.

TABLE

(2) Where the income tax or corporation tax payable depends on the amount received in the State, the said amount shall be treated as increased by the amount of the credit allowable against income tax or corporation tax, as the case may be.

In paragraph 12 of Schedule 10, for “corporation profits tax” there shall be substituted “corporation tax”, and the said paragraph 12, as so amended, is set out in the following Table

TABLE

12. Where, under the arrangements, relief may be given either in the State or in the territory in regard to which the arrangements are made in respect of any income and it appears that the assessment to income tax or to corporation tax made in respect of the income is not made in respect of the full amount thereof or is incorrect having regard to the credit, if any, which falls to be given under the arrangements, any such additional assessments may be made as are necessary to ensure that the total amount of the income is assessed and the proper credit, if any, is given in respect thereof, and where the income is entrusted to any person in the State for payment, any such additional assessment to income tax may be made on the recipient of the income under Case IV of Schedule D.

In paragraph 13 (1) of Schedule 10, after “relevant year of assessment”, there shall be inserted “or the relevant accounting period”, and the said paragraph 13 (1), as so amended, is set out in the following Table.

TABLE

(1) Subject to paragraph 14, any claim for an allowance by way of credit for foreign tax in respect of any income shall be made in writing to the inspector not later than six years from the end of the relevant year of assessment or the relevant accounting period, and, if the inspector objects to any such claim, it shall be heard and determined by the Appeal Commissioners as if it were an appeal to them against an assessment to income tax and the provisions of this Act relating to the rehearing of an appeal or the statement of a case for the opinion of the High Court on a point of law, shall, with the necessary modifications, apply accordingly.

In paragraph 13 (2) of Schedule 10, “‘the relevant year of assessment’ means” shall be deleted; after “foreign tax in respect of any income”, there shall be inserted “‘the relevant year of assessment’ means”; and after “in respect thereof”, there shall be inserted “and ‘the relevant accounting period’ means the accounting period for which that income falls to be charged to corporation tax or would fall so to be charged if any corporation tax were chargeable in respect thereof”, and the said paragraph 13 (2), as so amended, is set out in the following Table.

TABLE

(2) In this paragraph, in relation to credit for foreign tax in respect of any income, “the relevant year of assessment” means the year of assessment for which that income falls to be charged to income tax or would fall so to be charged if any income tax were chargeable in respect thereof and “the relevant accounting period” means the accounting period for which that income falls to be charged to corporation tax or would fall so to be charged if any corporation tax were chargeable in respect thereof.

In paragraph 14 of Schedule 10, for “corporation profits tax” there shall be substituted “corporation tax”, and the said paragraph 14, as so amended, is set out in the following Table.

TABLE

14. Where the amount of any credit given under the arrangements is rendered excessive or insufficient by reason of any adjustment of the amount of any tax payable either in the State or in the territory in regard to which the arrangements are made, nothing in this Act or in the enactments relating to corporation tax limiting the time for the making of assessments or claims for relief shall apply to any assessment or claim to which the adjustment gives rise, being an assessment or claim made not later than six years from the time when all such assessments, adjustments and other determinations have been made, as are material in determining whether any, and if so what, credit falls to be given.

No. 14 of 1970

Finance Act, 1970 .

The following subsection shall be substituted for section 57 (1)—

“(1) In this section ‘Corporation Tax Acts’ has the meaning given by section 155 (1) of the Corporation Tax Act, 1976.”.

In section 57 (2), for “section 363 of the said Act,”, there shall be substituted “section 167 of the Corporation Tax Act, 1976”, and the said section 57 (2), as so amended, is set out in the following Table.

TABLE

(2) For the purposes of section 361 of and Schedule 10 to the Income Tax Act, 1967 , and of the definition of “double taxation relief” in section 167 of the Corporation Tax Act, 1976, any amount of tax under the law of a territory outside the State which would have been payable but for a relief to which this section applies given under the said law (being a relief with respect to which provision is made in arrangements for double taxation relief which are the subject of an order under the said section 361) shall be treated as having been payable; and references in the said sections and Schedule to double taxation, tax payable or chargeable or tax not chargeable directly or by deduction shall be construed accordingly.

In section 57 (3), for “the Corporation Profits Tax Acts”, in each place where it occurs, there shall be substituted “the Corporation Tax Acts”, and the said section 57 (3), as so amended, is set out in the following Table.

TABLE

(3) The Revenue Commissioners may make regulations generally for carrying out the provisions of this section or any arrangements having the force of law under the said section 361 and may, in particular, but without prejudice to the generality of the foregoing, provide in the regulations—

(a) for the purposes of this section or of the regulations, for the application (with or without modifications) of any provision of the Income Tax Acts or any regulations made thereunder or the Corporation Tax Acts or any regulations made thereunder, including the provisions relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law, and

(b) that the whole or any part of a dividend paid out of profits or gains which consist of or include profits or gains in relation to which double taxation relief is given by virtue of this section is not to be regarded as income or profits for any purpose of the Income Tax Acts or of the Corporation Tax Acts.

The amendments in this Part of this Schedule shall not affect the liability to income tax for years of assessment ending on or before the 5th day of April, 1976, or the liability to corporation profits tax for accounting periods ending on or before that date, or the assessment, collection or recovery of either of those taxes or of interest thereon or other proceedings relating to those taxes or that interest.

PART II

Repeal of Enactments concerning Double Taxation Relief

Number and Year

Short Title

Extent of Repeal

(1)

(2)

(3)

No. 6 of 1967

Income Tax Act, 1967 .

Sections 363 and 364.

Paragraph 3 (1) of Schedule 10.

Paragraph 7 of Schedule 10.

In paragraph 8 (3) (c) of Schedule 10, the words “for the purposes of income tax”.

No. 33 of 1968

Finance Act, 1968 .

Section 35 .

The repeals in this Part of this Schedule shall not affect the liability to income tax for years of assessment ending on or before the 5th day of April, 1976, or the liability to corporation profits tax for accounting periods ending on or before that date, or the assessment, collection or recovery of either of those taxes or of interest thereon or other proceedings relating to those taxes or that interest.