Taxes Consolidation Act 1997 section 626

Tax on company recoverable from other members of group

Section 626 empowers Revenue to recover unpaid corporation tax on chargeable gains from other members of a group of companies, and provides rights of recovery for any company that pays tax under this section.

• Where a group company fails to pay corporation tax on a chargeable gain within six months of the due date, the unpaid tax attributable to that gain may be assessed on other group members.
• The assessment may be made on the principal company of the group or on any company that was a group member in the two years ending when the gain accrued and that owned the asset (or an interest in it) while a member of the group.
• The tax assessed on another group member cannot exceed the corporation tax charged on the gain in the original assessment on the defaulting company.
• A company that pays tax under this section has statutory rights to recover the amount from the defaulting company, the principal company, or other group members that previously owned the asset.