Taxes Consolidation Act 1997 section 807C

Supplementary provisions in relation to section 806 - apportionment in certain cases

Section 807C protects individuals from a full income tax charge under the transfer of assets abroad rules in section 806, where the chargeable income is partly attributable to earlier transactions that qualified for a commercial exemption and partly to later associated operations that did not.

• Where an individual fails the post-1 February 2007 commercial purpose test under section 806 but earlier relevant transactions qualified for an appropriate exemption, the section 806 charge is reduced so that it applies only to income attributable to the non-exempt associated operations (referred to as "chargeable operations").
• An "appropriate exemption" means the individual was not caught by the transfer of assets abroad rules because the transactions passed either the pre-2007 bona fide commercial reasons test under section 806(8)(b) or the post-2007 purpose test under section 806(10)(b)(ii).
• An "exempt year of assessment" is a year since the original transfer in which the individual either was not liable under section 806 because an appropriate exemption applied, or would not have been liable if there had been any deemed income — provided there is no earlier year in which the individual was (or would have been) liable under section 806.
• In determining how much income is justly and reasonably attributable to chargeable operations, the Revenue Commissioners may consider factors including the character, description or amount of any person's income, any person's power to enjoy income, and the character, description or amount of income a person has power to enjoy.