Section 826 Agreements for relief from double taxation
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(1) Where―
(a) 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―
(i) affording relief from double taxation in respect of―
(I) income tax,
(II) corporation tax in respect of income and chargeable gains (or, in the case of arrangements made before the enactment of the Corporation Tax Act 1976, corporation profits tax),
(III) capital gains tax,
(IV) any taxes of a similar character,
imposed by the laws of the State or by the laws of that territory, and
(ii) in the case of taxes of any kind or description imposed by the laws of the State or the laws of that territory―
(I) exchanging information for the purposes of the prevention and detection of tax evasion, ...1
(II) granting relief from taxation under the laws of that territory to persons who are resident in the State for the purposes of tax, [or]2
[(III) collecting and recovering tax (including interest, penalties and costs in connection with such tax) for the purposes of the prevention of tax evasion,]3
and that it is expedient that those arrangements should have the force of law, and
(b) the order so made is referred to in Part 1 of Schedule 24A,
then, subject to this section and to the extent provided for in this section, the arrangements shall, notwithstanding any enactment, have the force of law as if each such order were an Act of the Oireachtas on and from the date of―
(A) the insertion of Schedule 24A into the Principal Act by paragraph (b), or
(B) the insertion of a reference to the order into Part 1 of Schedule 24A,
whichever is the later.
Amendments
Subs (1) substituted by Finance Act 2007 section 35(1)(a) from 2 April 2007.
1 Deleted by Finance Act 2010 section 157(a).
2 Inserted by Finance Act 2010 section 157(a).
3 Clause (III) inserted by Finance Act 2010 section 157(b).
How are double tax agreements entered into?
(1) The Irish government is empowered to agree double tax treaties, and enter into information exchange agreements with other States in respect of income tax, corporation tax on income and chargeable gains, capital gains tax, and taxes of a similar c...
What provisions apply in the various treaties?
Although several countries (for example, Belgium, Switzerland) generally avoid double taxation by giving an exemption from tax on foreign source income rather than by way of tax credit, most developed countries use both the tax credit system and the ...
(1A) Where―
(a) 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 of air transport undertakings and their employees in respect of all taxes which are or may become chargeable on profits, income and capital gains imposed by the laws of the State or the laws of that territory, and that it is expedient that those arrangements should have the force of law, and
(b) the order so made is referred to in Part 1 of Schedule 24A,
then, subject to this section and to the extent provided for in this section, the arrangements shall, notwithstanding any enactment, have the force of law as if each such order were an Act of the Oireachtas on and from the date of―
(A) the insertion of Schedule 24A into this Act, or
(B) the insertion of a reference to the order into Part 1 of Schedule 24A,
whichever is the later.
Amendments
Subs (1A) inserted by Finance Act 2007 section 35(1)(a) from 2 April 2007.
Can the government enter into other types of tax treaties?
(1A) The government has the power to enter into limited tax treaties which give double taxation relief to sea crew and airline pilots and cabin crew. From 2 April 2007, the formal procedure for giving effect to such arrangements is that the governmen...
(1B) Where―
(a) 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―
(i) exchanging information for the purposes of the prevention and detection of tax evasion in the case of taxes of any kind or description imposed by the law of the State or the laws of that territory,
(ii) such other matters relating to affording relief from double taxation as the Government consider appropriate,
and that it is expedient that those arrangements should have the force of law, and
(b) the order so made is specified in Part 3 of Schedule 24A,
then, subject to this section, the arrangements shall, notwithstanding any enactment, have the force of law as if each such order were an Act of the Oireachtas on and from the date of the insertion of a reference to the order into Part 3 of Schedule 24A.
Amendments
Subs (1B) inserted by Finance Act 2007 section 35(1)(a) from 2 April 2007.
How are tax information exchange agreements given effect?
(1B) The government has the power to enter into tax information exchange agreements. From 2 April 2007, the formal procedure for giving effect to such arrangements is that the government makes an order (statutory instrument) and the order becomes law...
(1C) Where—
(a) the Government by order declares that it has become a signatory to the Convention on Mutual Administrative Assistance in Tax Matters which was done at Strasbourg on the 25th day of January 1988, or any Protocol to the Convention, for the purposes of the prevention and detection of tax evasion in the case of taxes of any kind or description imposed by the laws of the State or the laws of the territories of the signatories other than the State to the Convention and that it is expedient that the Convention, or any Protocol to the Convention, should have the force of law, and
(b) the order so made is referred to in Part 4 of Schedule 24A,
then, subject to this section, the Convention or any Protocol to the Convention shall, notwithstanding any enactment, have the force of law as if the order were an Act of the Oireachtas on and from the date of the insertion of a reference to the order into Part 4 of Schedule 24A.
Amendments
Subs (1C) inserted by Finance Act 2010 section 157(c).
Does the Irish government's commitment to mutual assistance in tax matters with other countries have the force of law?
(1C) The OECD and the Council of Europe have a joint Convention on Mutual Administrative Assistance in Tax Matters. Parties to the convention agree to mutually assist each other with regard to exchange of information, recovery of taxes and service of...
(2) Schedule 24 shall apply where arrangements which have the force of law by virtue of this section provide that tax payable under the laws of the territory concerned shall be allowed as a credit against tax payable in the State.
(3) Any arrangements to which the force of law is given under this section may include provision for relief from tax for periods before the passing of this Act or before the making of the arrangements and provisions as to income or chargeable gains which is or are not subject to double taxation, and subsections (1) and (2) shall apply accordingly.
(4) For the purposes of subsection (1), arrangements made with the head of a foreign state shall be regarded as made with the government of that state.
(5) Any order made under this section may be revoked by a subsequent order, and any such revoking order may contain such transitional provisions as appear to the Government to be necessary or expedient.
(6) Where an order is proposed to be made under this section, a draft of the order shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann.
(7) Where any arrangements have, or the Convention has, the force of law by virtue of this section, the obligation as to secrecy imposed by any enactment shall not prevent the Revenue Commissioners or any authorised officer of the Revenue Commissioners from disclosing to any authorised officer of the government with which arrangements have been made, or of a party to the Convention, as the case may be, such information as is required to be disclosed for the purposes of the arrangements or the Convention.
Amendments
Subs (7) substituted by Finance Act 2010 section 157(d).
Do the "mutual assistance" clauses in a DTA affect the secrecy obligations generally imposed on Revenue?
(7) In so far as Revenue are obliged to disclose information under a tax treaty's "mutual assistance" clause, the official secrecy obligations imposed on Revenue in relation to a person's tax affairs do not apply....
(8) The necessary apportionments as respects corporation tax shall be made where arrangements having the force of law by virtue of this section apply to the unexpired portion of an accounting period current at a date specified by the arrangements, and any such apportionment shall be made in proportion to the number of months or fractions of months in the part of the relevant accounting period before that date and in the remaining part of the relevant accounting period respectively.
What if my company's accounting period straddles the effective date of a treaty?
(8) Where your company's accounting period straddles the effective date of a tax treaty (see below), double tax relief is apportioned in proportion to the number of months in the period ending before and after the effective date, so that relief is on...
(9) The Revenue Commissioners may from time to time make regulations generally for carrying out the provisions of this section or any arrangements having the force of law under this section and may in particular, but without prejudice to the generality of the foregoing, by those regulations provide―
(a) for securing that relief from taxation imposed by the laws of the territory to which any such arrangements relate does not enure to the benefit of persons not entitled to such relief, and
(b) for authorising, in cases where tax deductible from any periodical payment has, in order to comply with any such arrangements, not been deducted and it is discovered that the arrangements do not apply to that payment, the recovery of the tax by assessment on the person entitled to the payment or by deduction from subsequent payments.
