Taxing Financial Transactions
- CHAPTER 1 BACKGROUND
- TAX REGIME FOR INTERNATIONAL FINANCIAL BUSINESS
- 1.1 INTRODUCTION
- 1.2 CORPORATION TAX: GENERAL PRINCIPLES RELEVANT TO THE FINANCIAL SERVICES INDUSTRY
- 1.3 TRADING
- 1.4 SCHEDULE D CASE I
- 1.5 SCHEDULE D CASE III
- 1.6 SCHEDULE D CASE IV
- 1.7 DIFFICULTIES WITH THE TAXATION OF INTEREST INCOME.
- 1.8 CAPITAL AND ONE-OFF TRANSACTIONS
- 1.9 THE INTERNATIONAL ELEMENT
- 1.10 RELIEF FOR FOREIGN TAX SUFFERED.
- 1.11 INTEREST WITHHOLDING TAX
- 1.12 ENCASHMENT TAX
- 1.13 DIVIDEND WITHHOLDING TAX
- 1.14 TRANSFER PRICING
- 1.15 ADMINISTRATION
- 1.16 INCOME TAX
- 1.17 CAPITAL GAINS TAX/CHARGEABLE CAPITAL GAINS
- 1.18 VALUE ADDED TAX
- 1.19 STAMP DUTIES AND LEVIES
- CHAPTER 2 FOREIGN CURRENCY
- 2.1 INTRODUCTION
- 2.2 TRADING INCOME
- 2.2.1 Accounting for Foreign Currency
- 2.2.2 Foreign Branches and Subsidiaries - Accounting
- 2.2.3 Foreign Branches and Subsidiaries - Taxation
- 2.2.4 Capital allowances
- 2.2.5 Losses
- 2.3 INVESTMENT INCOME
- 2.4 CAPITAL GAINS
- 2.4.1 Foreign currency impact on CGT calculations
- 2.4.2 Foreign currency as an asset
- 2.4.3 Share capital
- 2.4.4 Debt
- 2.5 CALCULATION AND PAYMENT OF TAX
- CHAPTER 4 INSURANCE
- 4.1 INTRODUCTION
- 4.2 GENERAL INSURANCE TRANSACTIONS
- 4.2.1 Definitions
- 4.2.2 Tax Treatment for Policyholders
- 4.2.3 Tax Treatment for General Insurance Companies
- 4.3 CAPTIVE INSURANCE AND CAPTIVE REINSURANCE BUSINESS.
- 4.3.1 Definitions
- 4.3.2 Tax Treatment for Policyholders
- 4.3.3 Tax Treatment for Captive Insurance and Reinsurance Companies
- 4.3.4 Captive Management Companies
- 4.4 REINSURANCE OF GENERAL AND LIFE INSURANCE RISKS
- 4.4.1 Definitions
- 4.4.2 Tax Treatment for Insurer entering into Reinsurance Transactions
- 4.4.3 Tax Treatment for Reinsurance Companies
- 4.5 LIFE ASSURANCE – IRISH BUSINESS
- 4.5.1 Definitions
- 4.5.2 Tax Treatment for Policyholders
- 4.5.3 Life Companies – Operation of New Basis Business Exit Tax
- 4.5.4 Tax treatment for Domestic Life Companies – Old Basis Business
- 4.5.5 Tax Treatment for Domestic Life Companies – New Basis Business
- 4.5.6 Cross Border Life Assurance Business from Ireland
- 4.6 IMPACT OF INDIRECT TAXES ON INSURANCE
- 4.6.1 Premium Taxes (Levies)
- 4.6.2 Stamp Duty
- 4.6.3 United States Federal Excise Tax Exemption
- 4.6.4 Value Added Tax
- 4.7 TRANSFERS OF INSURANCE TRADES
- CHAPTER 5 FUNDS AND ASSET MANAGEMENT
- 5.1 INTRODUCTION
- 5.2 TYPES OF FUND ENTITY
- 5.3 HISTORICAL TAXATION OF FUNDS
- 5.4 INVESTMENT UNDERTAKINGS – THE GROSS ROLL UP REGIME
- 5.4.1 Meaning of Investment Undertaking
- 5.4.2 Chargeable Events
- 5.4.3 Calculation of tax
- 5.4.4 Exemptions for certain categories of unitholder
- 5.4.5 Declaration procedure
- 5.4.6 Payment of tax
- 5.5 TAXATION OF UNITHOLDERS IN INVESTMENT UNDERTAKINGS
- 5.5.1 Non corporate unitholders
- 5.5.2 Corporate unitholders
- 5.5.3 Repayments of tax
- 5.5.4 Foreign currency denominated units
- 5.6 RECONSTRUCTIONS AND REORGANISATIONS
- 5.7 PENSION POLICY VEHICLES
- 5.8 OFFSHORE FUNDS
- 5.8.1 Material interests in offshore funds
- 5.8.2 Distributing and non-distributing funds
- 5.8.3 Disposal of material interest for the purposes of the offshore funds legislation
- 5.8.4 Funds operating equalisation arrangements
- 5.8.5 Qualifying offshore fund
- 5.8.6 Rates of tax
- 5.8.7 Returns of material interest in offshore funds
- 5.8.8 EU/EEA/OECD and tax treaty offshore funds
- 5.8.9 Income distributions
- 5.8.10 Taxation on capital distributions and disposals
- 5.8.11 PRSI and levies
- 5.9 MISCELLANEOUS TAX EXEMPTIONS RELEVANT TO FUNDSM
- 5.9.1 Stamp duty
- 5.9.2 Companies’ capital duty
- 5.9.3 Capital acquisitions tax
- 5.9.4 Interest withholding tax
- 5.9.5 Deposit interest retention tax
- 5.9.6 Dividend withholding tax
- 5.9.7 VAT
- 5.10 DOUBLE TAXATION RELIEF
- 5.11 MANAGEMENT COMPANIES
- 5.12 PERMANENT ESTABLISHMENT / BRANCH OR AGENCY ISSUES IN RELATION TO IRISH INVESTMENT MANAGERS
- 5.13 EU SAVINGS DIRECTIVE
- APPENDIX
- CHAPTER 6 TAXATION OF LEASING TRANSACTIONS
- 6.1 INTRODUCTION
- 6.2 LEGAL ISSUES
- 6.3 ACCOUNTING
- 6.4 LESSOR TAXATION
- 6.4.1 Operating Leases
- 6.4.2 Finance Leases/Hire Purchase
- 6.4.3 Lease Transaction Costs
- 6.4.4 Interest income arising on security and maintenance deposits
- 6.4.5 Foreign Exchange
- 6.4.6 Trading status of lessors
- 6.5 LESSEE TAXATION
- 6.5.1 Operating Leases
- 6.5.2 Finance Leases
- 6.5.3 Lease Transaction Costs
- 6.5.4 Foreign Exchange
- 6.5.5 Defeasance
- 6.6 DISPOSAL OF LEASED ASSETS
- 6.6.1 Gain on Disposal
- 6.6.2 Balancing charge/allowance
- 6.6.3 Market value and tax basis transfers
- 6.6.4 Sale and leaseback transactions
- 6.6.5 Sale of Lease Rentals
- 6.7 TAX DEPRECIATION
- 6.7.1 Machinery or plant
- 6.7.2 Conditions for tax depreciation
- 6.7.3 Lease Termination Arrangements
- 6.7.4 Tax depreciation rates
- 6.7.5 Accelerated allowances
- 6.7.6 Maximum limit on tax depreciation
- 6.7.7 Notional Tax Depreciation
- 6.8 LEASING LOSSES
- 6.9 INTERNATIONAL TAXATION ISSUES
- 6.10 SMALL TICKET LEASING
- 6.11 INDIRECT TAXES
- CHAPTER 7 DOUBLE TAXATION RELIEF
- 7.1 INTRODUCTION
- 7.2 DOUBLE TAXATION AGREEMENTS
- 7.3 INTEREST
- 7.4 ROYALTIES
- 7.5 DIVIDENDS
- 7.6 RENTS
- 7.7 LEASING INCOME
- 7.8 BRANCHES
- 7.9 UNILATERAL CREDIT
- 7.10 ENHANCED CREDIT – TREASURY OPERATIONS
- 7.11 PARENT-SUBSIDIARY DIRECTIVE
- 7.12 STOCK LENDING
- 7.13 DERIVATIVES
- 7.14 TAX CREDIT COMPUTATIONAL ISSUES
- 7.15 EFFECTIVE RATES OF FOREIGN TAX
- 7.16 TAX TREATY NETWORK
- 7.17 PARTICULAR TREATY ISSUES
- CHAPTER 8 BANKING
- 8.1 INTRODUCTION
- 8.2 CORPORATION TAX
- 8.3 INCOME RECOGNITION
- 8.4 BAD DEBTS
- 8.5 TAX TREATMENT OF ACQUISITION PREMIA OF PORTFOLIOS
- 8.6 TAX TREATMENT OF FUNDING
- 8.7 BANK LEVY
- 8.8 INTEREST TREATED AS A DISTRIBUTION
- 8.9 OTHER CONSIDERATIONS FOR BANKING INSTITUTIONS
- 8.9.1 Deposit interest retention tax
- 8.9.2 Encashment tax
- 8.9.3 The operation of Special Savings Incentive Accounts (SSIAs)
- 8.9.4 The operation of tax relief at source
- 8.9.5 The provision of authorised withholding agent and qualifying intermediary services
- 8.9.6 Third party returns
- 8.9.7 EU Tax Savings Directive
- CHAPTER 9 TAX FACTORS AFFECTING DEBT ISSUANCE
- 9.1 INTRODUCTION
- 9.2 WHAT IS THE NATURE OF THE INCOME ARISING?
- 9.3 WITHHOLDING TAX
- 9.3.1 Withholding tax on yearly interest
- 9.3.2 Withholding tax on discounts
- 9.3.3 Withholding tax on guarantee payments
- 9.3.4 Deposit interest retention tax
- 9.3.5 Encashment tax
- 9.3.6 Dividend withholding tax
- 9.4 INCOME TAX ON INTEREST AND DISCOUNTS
- 9.5 INCOME TAX ON DISTRIBUTIONS
- 9.6 CAPITAL GAINS TAX
- 9.7 CAPITAL ACQUISITIONS TAX
- 9.8 STAMP DUTY
- 9.9 DIRECTIVE ON THE TAXATION OF SAVINGS INCOME
- 9.10 SECURITISATION
- 9.11 ASSET COVERED SECURITIES (ALSO KNOWN AS IRISH COVERED BONDS)
- CHAPTER 10 THE CENTRAL BANK AND FINANCIAL SERVICES AUTHORITY OF IRELAND
- CHAPTER 11 VALUE ADDED TAX
- 11.1 INTRODUCTION
- 11.2 THE BASICS OF VAT
- 11.3 APPORTIONMENT OF INPUT CREDIT
- 11.4 OUTSOURCING
- 11.5 VAT GROUP REGISTRATION
- 11.6 BANKING
- 11.7 INSURANCE
- 11.8 SHARE TRANSACTIONS
- 11.9 VAT ON PROPERTY
- 11.10 PENSION FUNDS
- 11.11 FUNDS MANAGEMENT
- 11.12 INTERNATIONAL FINANCIAL SERVICES CENTRE (“IFSC”)
- 11.13 FINANCIAL INSTRUMENTS
- CHAPTER 12 CAPITAL TAXES
- 12.1 INTRODUCTION
- 12.2 STAMP DUTY
- 12.2.1 Conveyance or Transfer on Sale
- 12.2.2 Issue of Loan Notes
- 12.2.3 Unit Trusts, Partnerships and Co-Ownership Structures
- 12.2.4 Mortgage or Charge Over Property
- 12.2.5 Bills of Exchange and Promissory Notes
- 12.3 CAPITAL DUTY
- 12.4 LEVIES
- 12.5 CAPITAL ACQUISITIONS TAX