I move:
Financial Resolution No. 1: Income Tax.
(1) THAT Chapter 4 of Part 12 of the Taxes Consolidation Act, 1997 (No. 39 of 1997) be amended by inserting the following after section 409C:
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“Restriction of reliefs where individuals are not actively participating in certain trades. |
409D.–(1) In this section–‘active trader', in relation to a trade, means an individual who works for the greater part of his or her time on the day-to-day management or conduct of the trade; |
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‘specified provisions' means sections 305 and 381;‘specified trade' means a trade of or including the generation or supply of electricity; |
‘relevant year of assessment' means the year of assessment 2002 or any subsequent year during which the individual carried on at any time a specified trade otherwise than as an active trader.
(2) Where, in the case of an individual who carries on a specified trade otherwise than as an active trader, an amount may apart from this section be given or allowed under any of the specified provisions–
(a) in respect of a loss sustained by the individual in the specified trade in a relevant year of assessment, including a loss which is computed taking account of interest laid out or expended by the individual in respect of a loan where the proceeds of the loan were used to incur expenditure on machinery or plant used for the purposes of the specified trade, or
(b) as an allowance to be made to the individual for a relevant year of assessment either in taxing the specified trade or by means of discharge or repayment of tax to which he or she is entitled by reason of the individual carrying on the specified trade,
then, notwithstanding any other provision of the Tax Acts, such an amount may be given or allowed only against income from the specified trade and shall not be allowed in computing any other income or profits or in taxing any other trade or in charging any other income to tax.
(3) This section shall apply as respects–
(a) an allowance under Part 9 in respect of machinery or plant to be made for the year of assessment 2002 and subsequent years, and
(b) any loss sustained in a trade in the year of assessment 2002 and subsequent years.”.
(2) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).