Control & Qualifying Companies
27/03/1992
Query
If two relatives have 25% each of the shares in the BES company and they also hold 60% and 20% respectively in a company carrying on a similar trade, would this offend the provisions of this rule?
Decision
No. As "associate" for the purposes of Section 495(11) excludes relatives, no individual has control.
Income Tax
Section 495 (11), Taxes Consolidation Act, 1997
Origin: Direct Taxes International and Administration
File ref:1300/91
25/12/1994
Query
Would a sound recording company controlled by individuals who had control of other sound recording companies breach this section?
Decision
No- it is necessary for the purposes of the law to set up a separate company and this is acceptable provided that there is no attempt to breach Section 491.
Income Tax
Section 495 (11), Taxes Consolidation Act, 1997
Origin: Direct Taxes International and Administration
File ref:FILE NOT AVAILABLE
05/02/1999
Query
Would companies serving different markets although the same industry, offend this section?
Decision
No. If there was a good commercial reason for establishing the second company and if there would be no transfer of business from one to the other or winding down of one business.
Income Tax
Section 495 (11), Taxes Consolidation Act, 1997
Origin: Direct Taxes International and Administration
File ref:6432/5/98