Taxes Consolidation Act 1997 section 835AAA

Long-term public infrastructure projects

Section 835AAA empowers the Minister for Finance to make regulations specifying assets as large-scale assets for the purposes of the interest limitation rules applying to long-term public infrastructure projects.

• The Minister for Finance, in consultation with the Minister for Public Expenditure and Reform, may make regulations specifying an asset as a large-scale asset, provided it enhances the general public interest, does not breach EU State Aid rules, and the project's financing arrangements present special features justifying the specification.
• In assessing whether specification is in the public interest, the Minister must consider whether the asset would be provided without specification, whether specification would distort fair competition, and whether any resulting loss of Exchequer income is outweighed by the public benefit.
• A qualifying long-term infrastructure project must be carried on by an operator established and tax resident in a Member State, with the asset situated in a Member State, and the related income and deductible interest equivalent costs arising in a Member State.
• Where a relevant entity carries on a qualifying long-term infrastructure project, income and expenses directly connected with that project are excluded from the calculation of relevant profit or loss for interest limitation rule purposes; where the entity also carries on other activities, income and expenses are apportioned on a just and reasonable basis.