Corporation Tax Act, 1976

• Jurisdiction: Ireland
• Citation: IR No. 7/1976
• Year: 1976

Number 7 of 1976

CORPORATION TAX ACT, 1976

ARRANGEMENT OF SECTIONS

PART I

General System of Taxation

Section 1. Introduction for companies of corporation tax in place of income tax, corporation profits tax and capital gains tax. 2. Irish resident company distributions not chargeable to corporation tax. 3. Income tax on payments made or received by a company resident in the State. 4. Claims for repayment of income tax deducted from receipts. 5. Explanation of tax credit to be annexed to interest and dividend warrants.

PART II

Corporation Tax.

6. General scheme of corporation tax. 7. Tax on company in liquidation. 8. Companies not resident in the State. 9. Basis of, and periods for, assessment. 10. Allowance of charges on income. 11. Computation of income: application of income tax principles. 12. Miscellaneous special rules for computation of income. 13. Computation of chargeable gains. 14. Deductions and additions in computation of profits for capital allowances and related charges. 15. Deduction of management expenses of investment companies (including savings banks). 16. Relief for trading losses other than terminal losses. 17. Restriction of relief for losses in farming or market gardening. 18. Relief for terminal loss in a trade. 19. Losses in transactions from which income would be chargeable under Case IV or V of Schedule D. 20. Company reconstructions without change of ownership. 21. Application and adaptation of Income Tax Acts as to capital allowances. 22. Double taxation relief. 23. Double taxation relief: supplementary. 24. Franked investment income and franked payment. 25. Set-off of losses etc. against franked investment income. 26. Set-off of loss brought forward or terminal loss against franked investment income in the case of financial concerns. 27. Change in ownership of company: disallowance of trading losses.

PART III

Special Classes of Companies.

28. Reduction of corporation tax liability of small companies. 29. Companies carrying on mutual business, or not carrying on a business. 30. Industrial and provident societies. 31. Building societies. 32. Partnerships involving companies. 33. Expense of management of assurance companies. 34. Companies carrying on life business. 35. Profits of life business. 36. Investment income reserved for policy holders. 37. Chargeable gains reserved for policy holders. 38. Life business: computation of profits. 39. Annuity business: separate charge on profits. 40. General annuity business. 41. Pension business. 42. Foreign life assurance funds. 43. Overseas life assurance companies: investment income. 44. Overseas life assurance companies: general annuity and pension businesses. 45. Overseas life assurance companies: income tax, foreign tax and tax credit. 46. Overseas life assurance companies: distributions set off against income. 47. Overseas life assurance companies: expenses of management. 48. Life policies carrying rights not in money. 49. Benefits from life policies issued before 6th April, 1974. 50. Interpretation. 51. Treatment of tax-free income of non-resident banks, etc. 52. Tax-free securities: exclusion of interest on borrowed money.

PART IV

Profits from Export of Certain Goods

53. Definition of “relevant accounting period”. 54. Meaning of “goods”. 55. Ship building and repair. 56. Export of certain goods. 57. Standard period. 58. Basis of relief from corporation tax. 59. Certain manufacturing services. 60. Relief for engineering services in relation to works outside the State. 61. Adjustments of certain amounts. 62. Transactions between associated persons and company succeeding to trade of another company. 63. Production of documents and records. 64. Distributions. 65. Dividends and other distributions at gross rate or of gross amount. 66. Effect of reduction of tax credit. 67. Distributions to non-resident individuals. 68. Appeals.

PART V

Profits from Trading within Shannon Airport

69. Definitions. 70. Exempted trading operations. 71. Disregard of income or losses in the case of exempted trading operations. 72. Transactions between associated persons. 73. Delivery of statements, etc.

74. Exception from Part IV. 75. Reduction of capital allowances. 76. Distributions. 77. Provision for charges on income.

PART VI

Associated Companies: Relief under Parts IV and V

78. Relief in relation to transactions between associated companies.

PART VII

Special Exemptions

79. Reduced rate of corporation tax for certain income. 80. Exemption of income from carrying out of voluntary health insurance schemes.

PART VIII

Distributions out of Certain Profits from Mining

81. Distributions: profits of certain mines. 82. Distributions out of profits from coal, gypsum and anhydrite mining operations.

PART IX

Schedule F and Company Distributions

83. Schedule F. 84. Matters to be treated as distributions. 85. Bonus issues following repayment of share capital. 86. Matters to be treated or not treated as repayments of share capital. 87. Distributions: supplemental. 88. Tax credit for certain recipients of distributions. 89. Disallowance of reliefs in respect of bonus issues. 90. Distributions made out of capital profits of companies. 91. Distributions by newly resident companies out of profits arising before residence begins. 92. Distributions made before 6th April, 1976. 93. Distributions out of certain exempt profits.

PART X

Close Companies

94. Meaning of close company. 95. Certain companies with quoted shares not to be close companies. 96. Certain expenses for participators and associates. 97. Interest paid to directors and directors' associates. 98. Loans to participators, etc. 99. Effect of release, etc., of debt in respect of loan under section 98. 100. Distributions to be taken into account and meaning of “distributable income”, “investment income”, “estate income”, etc. 101. Surcharge on close company's undistributed investment and estate income. 102. Meaning of “associated company” and “control”. 103. Meaning of “participator”, “associate”, “director” and “loan creditor”. 104. Information.

PART XI

Group Relief

105. Group payments. 106. Election: group payments. 107. Group relief. 108. Group relief: qualifications for entitlement. 109. Group relief: profits or assets available for distribution. 110. Group relief: “the profit distribution”. 111. Group relief: “the notional winding up”. 112. Group relief: limited rights to profits or assets. 113. Group relief: diminishing share of profits or assets. 114. Group relief: beneficial percentage. 115. Group relief: “the relevant accounting period”, etc,. 116. Kinds of group relief. 117. Relation of group relief to other relief. 118. Corresponding accounting periods. 119. Companies joining or leaving group or consortium. 120. Group relief: effect of arrangements for transfer of company to another group, etc. 121. Leasing contracts: effect on claims for losses of company reconstructions. 122. Partnerships involving companies: effect of arrangements for transferring relief. 123. Information as to arrangements for transferring relief, etc. 124. Exclusion of double allowances, etc. 125. Claims and adjustments.

PART XII

Companies' Capital Gains

126. Corporation tax attributable to chargeable gains: recovery from shareholder. 127. Company reconstruction or amalgamation: transfer of assets. 128. Interest charged to capital. 129. Groups of companies: definitions. 130. Transfers within a group. 131. Transfers within a group: trading stock. 132. Disposal or acquisition outside a group. 133. Replacement of business assets by members of a group. 134. Tax on company recoverable from other members of a group. 135. Company ceasing to be member of a group. 136. Exemption from charge under section 135 in the case of certain mergers. 137. Shares in subsidiary member of a group. 138. Depreciatory transactions in a group. 139. Dividend stripping.

PART XIII

Application and Adaptation of Enactments

140. Application and adaptation of Income Tax Acts and Capital Gains Tax Act, 1975.

PART XIV

Administration

141. Particulars to be supplied by new companies, etc. 142. Notice of liability to corporation tax. 143. Return of profits. 144. Assessment of corporation tax. 145. Collection of corporation tax. 146. Appeals.

147. Application of income tax administrative provisions to corporation tax. 148. Time for certain summary proceedings. 149. Penalties for failure to...