Taxes Consolidation Act 1997 section 746

Offshore income gains accruing to persons resident or domiciled abroad

Section 746 applies adapted capital gains tax rules to offshore income gains, so that gains realised by non-resident trusts or close companies can be attributed to Irish-resident beneficiaries or participators and charged to income tax or corporation tax.

• Offshore income gains of non-resident trusts are attributed to Irish-resident and domiciled beneficiaries under adapted versions of sections 579 and 579A, with references to CGT replaced by income tax or corporation tax.
• Where both an offshore income gain and a chargeable gain fall to be attributed to the same beneficiary, the offshore income gain is attributed first to prevent double taxation of the same amount.
• Offshore income gains of non-resident close companies are attributed to Irish-resident participators under an adapted version of section 590, but reliefs for foreign trade asset gains and for losses are excluded.
• The transfer-of-assets-abroad rules (sections 806–807C) can apply to offshore income gains retained by a non-resident, but not where the gain has already been taxed under the trust or close company attribution rules.