Taxes Consolidation Act 1997 section 739I

Investment undertakings: reconstructions and amalgamations

Section 739I sets out the tax treatment of common contractual funds, providing for tax transparency where units are held by institutional investors.

• A common contractual fund (CCF) is a collective investment vehicle established under Irish law where investors participate as co-owners of the fund's assets.
• A CCF is tax transparent: the fund itself is not chargeable to tax, and income and gains are treated as arising directly to unitholders in proportion to their holdings.
• Tax transparency only applies where all units are held by institutional investors (such as pension funds) or non-individuals, or by trustees on behalf of non-individuals.
• The CCF must file an annual electronic statement with Revenue by 28 February following the tax year, with a €3,000 penalty for failure to file or filing an incorrect statement.