IRELAND Law and Practice Contributed by: Philip Tully, Emma Doherty, Alice Duffy, Simon Shinkwin and Marie McGinley, Matheson LLP
5.7 Anti-Evasion Rules Ireland has strict anti-evasion rules that impose crimi - nal sanctions on those who fraudulently evade tax and anyone who facilitates such evasion. Anyone found guilty of an offence may be fined and/or imprisoned. Anti-Avoidance Rule Ireland also has a general anti-avoidance rule that applies in respect of tax-avoidance transactions. Broadly, a tax avoidance transaction in this context is a transaction which gives rise to a tax advantage and is undertaken primarily to claim a tax advantage and not for bona fide commercial reasons. In such cases, Revenue may deny or withdraw the relevant tax advantage. Exit Charge Ireland introduced an ATAD-compliant exit tax in October 2018. The exit tax is charged at a rate of 12.5% and applies to unrealised capital gains inherent in assets where: • a company migrates its place of residence from Ireland to any other jurisdiction; or • assets or a business of an Irish permanent estab - lishment (PE) are allocated from the PE back to its head office or to a PE in another jurisdiction (this limb of the charge only applies in respect of companies that are resident in an EU member state other than Ireland). The exit charge does not apply to assets that remain within the Irish tax charge. A higher 33% exit charge can apply where the transaction forms part of an arrangement to subsequently dispose of the relevant assets. Where the relevant company/assets have been migrated to an EU/EEA country, the exit charge may be deferred and, in such circumstances, is payable in instalments over five years. If the exit charge is unpaid, Revenue may pursue any other Irish-resident group company or a director who has a controlling interest in the company subject to the charge. 5.8 Tariffs As a member of the EU, Ireland is subject to direct - ly applicable EU customs rules. There is tariff-free
trade on goods sold within the EU. The EU typically applies the WTO “most favoured nation” principle, which entails that third countries are generally treated equally in terms of trade benefits, including customs duties and other charges. Reduced tariffs can apply to imports originating in territories which have entered into a free trade agreement (FTA) with the EU. In response to recent developments in US tariff and trade policy and the threat of EU retaliatory measures, the EU and US reached a framework agreement on tariffs. The EU–US trade deal provides for a single, all inclusive tariff rate of 15% on most EU goods exports to the US and a tariff rate of 0% on certain US goods exports to the EU. Most recently, the EU and India concluded negotia - tions on a landmark Free Trade Agreement that aims to strengthen economic ties between the two terri - tories. Once formally approved, it will represent the largest trade agreement that both the EU and India have ever concluded. The EU also has the “Anti-Coercion Instrument” (ACI) at its disposal, which provides for the possibility of restricting importations or exportations, excluding participation in public tenders, and also allows for the non-performance of international obligations in numerous fields (international property rights, insur - ance, banking). Given the wide-ranging nature of the measures under the ACI, this instrument is perhaps more likely to be used as a last resort or for negotia - tion purposes.
6. Competition Law 6.1 Merger Control Notification
The Irish merger control regime applies to “any merger or acquisition” defined in the Competition Acts 2002 to 2022 (the “Act”), as amended, including transac - tions where: • two or more undertakings, previously independent of one another, merge; • one or more individuals who already control one or more undertakings or one or more undertakings
499 CHAMBERS.COM
Powered by FlippingBook