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7 1976

CORPORATION TAX ACT, 1976

PART VI

Associated Companies: Relief under Parts IV and V

Relief in relation to transactions between associated companies.

78. —(1) In this section—

the airport” has the same meaning as in the Customs-free Airport Act, 1947 ;

company” has the same meaning as in section 69 (definitions);

control” has the meaning assigned to it by section 158;

exempted trading operation” means a trading operation in respect of which there is in force a certificate given, before the 6th day of April, 1967, under section 3 (2) of the Finance (Miscellaneous Provisions) Act, 1958 , or, on or after that date, under the said section 3 (2) and section 374 (2) of the Income Tax Act, 1967 , or under section 70 (2) (exempted trading operations) of this Act;

goods”, where it occurs in subsection (3), has the same meaning as in Part IV (Profits from Export of Certain Goods);

other trading operation” means a trading operation which is carried on wholly within the airport other than an exempted trading operation;

qualified company” has the same meaning as in section 70 (1).

(2) Where a qualified company (in this subsection referred to as the seller) which carries on a trade consisting partly of exempted trading operations and partly of other trading operations sells goods in the course of the other trading operations to a company (in this subsection referred to as the buyer) which carries on a trade in the State wholly outside the airport, and—

(a) the other trading operations would have been exempted trading operations if the goods had been exported out of the State by the seller, and

(b) the seller has control over the buyer or the buyer has control over the seller or some other person has control over both the buyer and the seller, and

(c) the goods are appropriated as trading stock of the buyer, and

(d) the goods are subjected by the buyer to a process of manufacture in the State, and

(e) the inspector is satisfied that the goods have been, or will be, exported out of the State by the buyer either as components of other goods or otherwise, and

(f) the other trading operations consist wholly of the sale of goods to the buyer and any goods sold by the buyer in the course of his trade (other than goods exported out of the State) are sold to the seller,

the income arising from, or losses sustained in, the other trading operations shall be deemed, notwithstanding section 70 (6) (a) or any certificate under section 70 (2) or any certificate having effect, by virtue of the proviso to section 70 (2), as if it were a certificate under the said section 70 (2), to arise from, or to be sustained in, exempted trading operations and Part V (Profits from trading within Shannon Airport) shall apply accordingly.

(3) Where a company (in this subsection referred to as the seller) which is not a qualified company sells goods to a person (in this subsection referred to as the buyer) who is either a qualified company which carries on a trade consisting partly of exempted trading operations and partly of other trading operations or a company which carries on a trade in the State wholly outside the airport, and—

(a) the seller would have been entitled to claim relief under Part IV in respect of the profits attributable to the sale of the goods if they had been exported out of the State, and

(b) the seller has control over the buyer or the buyer has control over the seller or some other person has control over both the buyer and the seller, and

(c) the goods are appropriated as trading stock of the buyer, and

(d) the goods are subjected by the buyer to a process of manufacture in the State, and

(e) the inspector is satisfied that the goods have been, or will be, exported out of the State by the buyer either as components of other goods or otherwise, and

(f) any goods sold by the seller in the course of his trade (other than goods exported out of the State) are sold to the buyer and any goods sold by the buyer in the course of his trade (other than goods exported out of the State) are sold to the seller,

Part IV shall apply as if the goods has been exported out of the State by the seller and any amount receivable by the seller from the sale of the goods to the buyer shall be deemed to be an amount receivable from the sale of goods so exported.