600P. Failure to comply with requirements of this Chapter

(1) This subsection applies to a company (in this subsection referred to as ‘the first-mentioned company’) to which certificates of qualification were issued which are valid and—

(a) the first-mentioned company does not satisfy the conditions specified in subsection (2)(a) of section 600F,

(b) any company that is a member of the relief group of which the first-mentioned company is a member does not satisfy the conditions specified in paragraphs (b) and (c) of subsection (2) of section 600F, or

(c) the relief group of which the first-mentioned company is a member does not satisfy the conditions specified in subsection (2)(d) of section 600F.

(2) (a) A company to which subsection (1) applies—

(i) shall not provide copies of its certificates of qualification to a qualifying investor or a qualifying partnership, as the case may be, and

(ii) shall return its certificates of qualification to the Revenue Commissioners.

(b) Where a company returns its certificates of qualification under paragraph (a), the Revenue Commissioners shall withdraw the certificates.

(c) Where the Revenue Commissioners withdraw the certificates of qualification under paragraph (b) they shall cease to be valid from the date of withdrawal.

(3) (a) This subsection applies to an investment and a company where the company, contrary to subsection (2)(a)(i), provided a copy of the certificates of qualification to the qualifying investor or qualifying partnership, as the case may be, who made the investment in the company.

(b) A company to which this subsection applies shall, in the year in which the certificates of qualification were provided to the qualifying investor or qualifying partnership, as the case may be, be charged to corporation tax under Case IV of Schedule D for the accounting period in which the investment to which this subsection applies was made in an amount calculated by the following formula:

(I X 2 X 17 per cent) X 4

where I is the investment to which this subsection applies.

(c) An amount chargeable to tax under this section shall be treated—

(i) as income against which no loss, deficit, expense or allowance may be set off, and

(ii) as not forming part of the income of the company for the purposes of calculating a surcharge under section 440.

(4) (a) Where, during the period of validity of the certificates of qualification issued to a company, there is a change in the material facts relevant to the satisfaction of the conditions specified in section 600F(2)—

(i) the company, or

(ii) any officer or agent of the company who has knowledge of the change,

shall, within 30 days of the change or, in the case of an officer or agent of the company falling within subparagraph (ii) within 30 days of coming to know of the change, bring that change to the attention of the Revenue Commissioners.

(b) (i) An individual who does not comply with paragraph (a) shall be liable to a penalty of €3,000.

(ii) Where a company does not comply with paragraph (a)—

(I) the company shall be liable to a penalty of €4,000, and

(II) the secretary of the company shall be liable to a separate penalty of €3,000.

(c) Where information comes to the attention of the Revenue Commissioners which causes the Revenue Commissioners to form the opinion that—

(i) there has been a change in a material fact relevant to the satisfaction of any of the conditions specified in section 600F(2), or

(ii) any of the conditions specified in section 600F(2) were not satisfied at the date of application under section 600F(1) or the date on which the certificates of qualification were issued or renewed, as the case may be,

then, the Revenue Commissioners shall give notice in writing to the company that they intend to withdraw the certificates of qualification.

(d) For the purposes of paragraph (c), the Revenue Commissioners shall take into account any recommendations or report which Enterprise Ireland may make to the Revenue Commissioners following such consultation by them with Enterprise Ireland as they consider appropriate for this purpose (including by the provision to Enterprise Ireland of such information in relation to the matter as is necessary for the purposes of such consultation).

(e) A notice under paragraph (c) shall state—

(i) the reasons for the intention to withdraw the certificates of qualification, and

(ii) that the company has a period of 30 days to make submissions and to provide such information and explanations as are necessary to prove to the satisfaction of the Revenue Commissioners that the conditions specified in section 600F(2)—

(I) continue to be satisfied, in a case where paragraph (c)(i) applies, or

(II) were satisfied, in a case where paragraph (c)(ii) applies.

(f) Where, following consideration of any submissions and such additional information or explanations as may be provided by the company pursuant to a notice under paragraph (c), and taking into account any recommendations or report which Enterprise Ireland may make to the Revenue Commissioners following such consultation by them with Enterprise Ireland as they consider appropriate for this purpose (including by the provision to Enterprise Ireland of such information in relation to the matter as is necessary for the purposes of such consultation), the opinion of the Revenue Commissioners remains that the conditions in section 600F(2)—

(i) are not satisfied, in a case where paragraph (c)(i) applies, or

(ii) were not satisfied, in a case where paragraph (c)(ii) applies,

then, the Revenue Commissioners shall issue a determination to that effect and that the certificates of qualification are withdrawn and the reasons for the determination.

(g) A person aggrieved by a determination issued under paragraph (f) may appeal the determination to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of that determination.

(h) A determination under paragraph (f) shall take effect and the certificates of qualification so withdrawn shall cease to be valid—

(i) where no appeal against the determination is brought under paragraph (g), on the expiration of the period specified in paragraph (g) for bringing an appeal, or

(ii) where an appeal if brought under paragraph (g), on the date on which the determination is confirmed on appeal or the appeal is withdrawn, abandoned or otherwise not proceeded with, as the case may be.