Taxes Consolidation Act 1997 Schedule 19 paragraph 3

Income taxable under Case III of Schedule D

Paragraph 3 provides that certain income of a non-corporate offshore fund which is taxable under Case III of Schedule D in the hands of Irish resident investors may be treated as a qualifying distribution for the purposes of the distributor test, even if it has not actually been distributed.

• Applies to offshore funds that are non-resident unit trusts or co-ownership arrangements under foreign law, but not to funds that are companies
• Covers fund income of a type on which Irish resident investors would be chargeable to tax under Case III of Schedule D, including income from Irish assets that would be so chargeable had the assets been situated outside the State
• To the extent that such income has not actually been distributed in a form that satisfies the distributor test conditions, it is deemed to be a qualifying distribution made out of the income of which it forms part
• The deemed distribution is treated as paid to the investors to whose interests the income is referable, thereby increasing the amount counted towards satisfying the distributor test