DEDUCTION (EMBELLISHMENT PROJECT) RULES

DEDUCTION (EMBELLISHMENT PROJECT) RULES

SUBSIDIARY LEGISLATION 123.177

DEDUCTION (EMBELLISHMENT PROJECT)

RULES

10th October, 2017

LEGAL NOTICE 274of 2017.

(1)

The title of these rules is the Deduction

(Embellishment Project) Rules.

(2) These rules shall apply in respect of expenditure

incurred as from 1 st January 2017.

In these rules, unless the context otherwise requires –

"Directorate" means the Directorate responsible for

Local Councils;

"Local Council" means a Local Council established

under the Local Government Act and being the relative Local

Council responsible for the location where the qualifying

project is carried out;

"qualifying person" means a person carrying on a trade

or business who undertakes a qualifying project; and

"qualifying project" means an embellishment or other

project useful to the local community that has been approved

as such in writing by the Local Council and the Directorate on

or after 1 st January 2017, following an application made in this

respect on such form as the Directorate may require. Such

project must be wholly a community asset on which the

qualifying person retains no proprietary rights and for which

the said qualifying person is not remunerated in any way.

(1)

Where a qualifying person incurs expenditure

in undertaking a qualifying project, a deduction equivalent to 120%

of the cost incurred on such expenditure in any year may be claimed

in the relative year of assessment against the said person’s income

from trade or business chargeable to tax

Provided that the deduction claimed under these rules

may not exceed €90,000 in any year.

(2) Where a deduction is claimed under these rules, no other

deduction may be claimed in respect of the same expenditure.

(3) Where the qualifying person benefits from any form of

assistance in relation to the said expenditure by the Government or

DEDUCTION (EMBELLISHMENT PROJECT) RULES

from any other entity, the amount of such benefit or assistance shall

be subtracted from the expenditure on which the deduction under

these rules may be claimed.

(1)

The deduction provided for by these rules shall

only be allowed on completion of the project and where the details of

the expenditure incurred in respect of the qualifying project have

been provided to the Local Council, on such form and in such manner

as the Directorate may require, and such expenditure and completion

of the project is approved by the Local Council and the Directorate.

(2) The Directorate shall, following the approval in

accordance with sub-rule (1) hereof, submit the approved forms to

the Commissioner in such manner as the Commissioner may require.

(1)

Where a project is situated over an area which

falls under the remit of more than one Local Council, it shall only be

considered a qualifying project if, in addition to the requirements of

these rules, all Local Councils responsible for the said area approve

the project in terms of these rules and as approved by the Directorate.

(2) A qualifying person may not claim a deduction under

these rules for more than one qualifying project in any year.