Taxes Consolidation Act 1997 Schedule 19 paragraph 8

Adjusting the primary fund's profits

Paragraph 8 sets out how a primary fund's Irish equivalent profits are adjusted upwards, for the purposes of the 85% distribution test, by adding its proportionate share of a qualifying fund's undistributed income.

• When testing the 85% distribution requirement, the primary fund's Irish equivalent profits are treated as increased by its proportionate share (determined under paragraph 9) of the qualifying fund's excess income for the relevant account period.
• A qualifying fund's excess income for an account period is the amount by which its Irish equivalent profits exceed the distributions it made for that period.
• Where the account periods of the primary fund and the qualifying fund coincide, the primary fund is simply attributed its share of the qualifying fund's excess income for that period.
• Where the account periods do not coincide, the primary fund's share is calculated on a time-apportioned basis, using the number of overlapping days as a fraction of the qualifying fund's account period.