Taxing Financial Transactions, Finance Act 2010

CHAPTER 1 THE FISCAL EENVIRONMENT

1.1 Introduction

1.2 Corporation Tax Principles

1.3 Accounting Standards and Section 76A and 76B TCA 1997

1.4 Deductibility of Certain Expenses for Financial Businesses

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

1.8.1 Calculation of chargeable gains

1.9 The International Element

1.10 Transfer Pricing

CHAPTER 2 THE RREGULATORY EENVIRONMENT

2.1 The Central Bank of Ireland

2.2 Monetary Policy

2.3 Supervision and Regulation of Financial Services

CHAPTER 4 FINANCIAL INSTRUMENTS

4.1 Introduction

4.2 Hedging Instruments

4.3 Credit Derivatives

4.4 Stocklending/Repos

4.5 Swaps

4.6 Forward Rate Agreement

4.7 Futures

4.8 Options

4.9 Detachable Warrants

4.10 Convertible Loan Stock

4.11 Spread Betting

4.12 Contracts for Difference

CHAPTER 5 BANKING

5.1 Introduction

5.2 Scope

5.3 Corporation Tax

5.4 Income Recognition

5.5 Bad Debts

5.5.1 Transfers to NAMA

5.6 Tax Treatment of Acquisition Premia of Portfolios

5.7 Tax Treatment of Interest and Funding Costs

5.8 Tax Based Loans – Interest Treated as a Distribution

5.9 Other Considerations for Banking Institutions

CHAPTER 6 LEASING AND ASSET FINANCING

6.1 Introduction

6.2 Legal Issues

6.3 Accounting

6.4 Lessor Taxation

6.5 Lessee Taxation

6.6 Disposal of Leased Assets

6.7 Tax Depreciation

6.8 Leasing Losses

6.9 International Taxation Issues

6.10 Small Ticket Leasing

6.11 Indirect Taxes

CHAPTER 7 INSURANCE

7.1 Introduction

7.2 General Insurance Transactions

7.3 Captive Insurance and Captive Reinsurance Business

7.4 Reinsurance of General and Life Insurance Risks

7.5 Life Assurance – Irish Business

7.6 Impact of Indirect Taxes on Insurance

7.7 Transfers of Insurance Trades

7.8 Shari’a Compliant Insurance Arrangements

CHAPTER 8 FUNDS AND ASSET MANAGEMENT

8.1 Introduction

8.2 Types of Fund Entity

8.3 Historical Taxation of Funds

8.4 Investment Undertakings – The “Gross Roll Up” Regime

8.5 Taxation of Unitholders in Investment Undertakings

8.6 Reconstructions and Reorganisations

8.7 Common Contractual Funds (CCF)

8.8 Offshore Funds

8.9 Miscellaneous Tax Exemptions Relevant to Funds

8.10 Double Taxation Relief

8.11 Management Companies

8.12 Permanent Establishment/Branch or Agency Issues in Relation to Irish Investment Managers

8.13 EU Savings Directive

8.14 Shari’a Compliant Funds

Appendix C8-1 Offshore Funds

CHAPTER 9 ISLAMIC FINANCIAL TRANSACTIONS

9.1 An Introduction to Islamic Finance

9.2 Shari’a Compliant Funds

9.3 Leasing and Hire-Purchase Transactions

9.4 Takaful (Insurance) Arrangements

9.5 Retail Banking Deposits

9.6 Lending Arrangement and Asset Backed Financing (Murabaha)

9.7 Property Mortgages

9.8 Inter-Bank Placement of Funds

9.9 Inter-Corporate Lending

9.10 Securitisation

CHAPTER 10 DEBT ISSUAANCE

10.1 Introduction

10.2 The Nature of Interest and Discount

10.3 Eurobonds

10.4 Wholesale Debt Instruments

10.5 Securitisation

10.6 Asset Covered Securities (also known as Irish Covered Bonds)

10.7 Withholding Tax

10.8 Deposit Interest Retention Tax

10.9 Encashment Tax and Eurobonds

10.10 Dividend Withholding Tax

10.11 Income Tax Exemptions on Interest and Discounts for Foreign Holders

10.12 Income Tax on Distributions

10.13 Capital Gains Tax

10.14 Capital Acquisitions Tax

10.15 Stamp Duty

10.16 Directive on the Taxation of Savings Income

CHAPTER 11 DOUBLE TAAX RELIEF

11.1 Introduction

11.2 Double Taxation Agreements

11.3 Interest

11.4 Dividends

11.5 Branches

11.6 Leasing Income

11.7 Royalties

11.8 Rents

11.9 Unilateral Credit Relief

11.10 Enhanced Credit – Treasury Operations

11.11 Parent Subsidiary Directive

11.12 Stock Lending

11.13 Derivatives

11.14 Tax credit computational issues

11.15 Effective Rates of Foreign Tax

11.16 Tax Treaty Network

11.17 Particular DTA Issues

11.18 Anti-avoidance

Appendix C11-1 Tax Briefing 67

CHAPTER 12 VALUE-ADDED TAX

12.1 Introduction

12.2 VAT and Financial Transactions

12.3 Input Credit Entitlement and Apportionment

12.4 VatAT Group Registration

12.5 Outsourcing Considerations

12.6 Banking, Leasing and Asset Financing

12.7 Insurance

12.8 Funds Management

12.9 Pension Funds

12.10 International Financial Services Centre (“IFSC”)

12.11 Financial Instruments

12.12 Share Transactions

12.13 Property Transactions

12.14 European Commission Review of VAT & Financial Services

Appendix C12-1 Exempt Financial Services

Appendix C12-2 Exemptions for Other Activities

CHAPTER 13 CAPITAL TAXES

13.1 Introduction

13.2 Stamp Duty

13.3 Capital Duty

13.4 Levies

13.5 Capital Acquisitions Tax