Taxes Consolidation Act 1997 Schedule 19 paragraph 14

Power of Revenue Commissioners to disregard certain breaches of conditions

Paragraph 14 of Schedule 19 gives the Revenue Commissioners a discretionary power to overlook certain breaches of the distributing fund conditions set out in section 744(3), provided the breach was inadvertent and was corrected without unreasonable delay.

• Revenue may disregard a breach of any of three investment-related conditions in section 744(3)(a), (b) or (c) when determining whether to certify an offshore fund as a distributing fund for an account period.
• The power applies only where Revenue are satisfied that the failure occurred inadvertently and was remedied without unreasonable delay.
• The three conditions that may be excused relate to limits on holdings in other offshore funds (5%), in a single company (10% by value), and on issued share capital of any company (10%).
• Revenue have no power to disregard a failure to distribute at least 85% of the fund's income — this condition must always be met.