Taxes Consolidation Act 1997 section 222

Certain dividends from a non-resident subsidiary

Section 222 provided an exemption from corporation tax for certain dividends received by an Irish resident company from a foreign subsidiary, where those dividends were applied for the purposes of an approved investment plan directed towards creating or maintaining employment in the State.

• Dividends received from a foreign subsidiary by an Irish resident parent company could be exempt from corporation tax where the proceeds were invested under an approved investment plan aimed at creating or maintaining employment in Ireland.
• The company had to submit an investment plan to the Minister for Finance, who could issue a certificate specifying the amount of qualifying dividends, provided the plan was directed towards employment in trading operations in the State. Such a certificate must be given before 15 February 2001.
• The qualifying dividends had to be applied for the purposes of the approved investment plan within a window beginning one year before and ending two years after the dividends were first received in the State, though the Revenue Commissioners could extend this period.
• Where all or part of the certified dividends were not applied within the required period, the Minister could reduce the certified amount, and any relief already granted on the reduced portion could be clawed back by the inspector through additional assessments.