Taxes Consolidation Act 1997 section 76B

Treatment of unrealised gains and losses in certain cases

Section 76B deals with the taxation of unrealised profits, gains, or losses on financial assets and financial liabilities where their fair value changes during an accounting period.

• Where a company measures financial assets or liabilities at fair value under IFRS (or Irish GAAP aligned to IFRS), any change in fair value during an accounting period that is included in the company's profit or loss must also be brought into account for Case I or Case II tax purposes.
• This treatment applies only to financial assets and liabilities that are trading assets and liabilities for tax purposes — it does not extend to items recognised in other comprehensive income.
• The terms "fair value", "financial asset", and "financial liability" take their meanings from International Financial Reporting Standards (IFRS), and all references to profits or gains include losses, which are computed in the same manner.
• Additional rules apply where the company is an Irish-resident securitisation vehicle (section 110) or a leasing entity (section 76D).