Taxes Consolidation Act 1997 section 806

Charge to income tax on transfer of assets abroad

Section 806 counters income tax avoidance by individuals resident or ordinarily resident in the State who transfer assets abroad, where the effect of the transfer is that income arises to a person who is resident or domiciled outside the State.

• Where an Irish-resident individual transfers assets and, as a result (alone or together with associated operations), income becomes payable to a non-resident or non-domiciled person, the income may be charged to tax on the Irish-resident individual.
• The charge applies where the individual has "power to enjoy" the non-resident's income or receives a capital sum connected with the transfer or any associated operation.
• Exemptions are available where the transactions had no tax avoidance purpose, or were genuine commercial transactions not designed more than incidentally to avoid tax.
• A separate exemption applies where the non-resident person is resident in an EU/EEA state or the United Kingdom and carries on genuine economic activities there.