Pearse Doherty (Donegal South West, Sinn Fein)
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180. To ask the Minister for Finance further to Parliamentary Questions Nos. 174,175,176 and 190 of 28 May 2013, the case law to which he is referring. [27081/13]

Michael Noonan (Limerick City, Fine Gael)
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In my reply to Parliamentary Questions Nos. 174,175,176 and 190 of 28th May 2013, I referred to the long-standing case law regarding the residence of companies. As a general rule, I indicated that, based on such case law, companies are resident in Ireland for tax purposes if they are managed and controlled here. Our tax legislation does not define what constitutes management and control of a company for the purposes of determining a company's residence. It is determined based on fact and case law precedent. The long-standing cases in which the principles covering management and control that have been developed by the courts include

De Beers Consolidated Mines Ltd v Howe 5TC198

American Thread Co v Joyce 6TC163

Todd v Egyptian Delta Land & Investment Co Ltd 14 TC 119

De Beers Consolidated Mines v Howe 5 TC 198 is a leading case on company residence. The principle that emerged in that case was that a company's residence is where the central management and control actually abides.

The Irish Courts, in the case of WJ Tipping (Inspector of Taxes) v Louis Jeancard 11ITR 68, cited and confirmed the principles established in the cases referred to above.

Other cases in which the principles governing company residence were developed include

Bullock v Unit Construction Co Ltd 38 TC 712

Union Corporation Ltd v IRC 34 TC 269

Wood v Holden CA [2006]

Based on the decided cases, factors to be taken into account in establishing where the company's central management and control lie include, where the important questions of company policy are determined, where the majority of directors reside, where the negotiation of major contracts is undertaken and where the company's head office is located.

In summary, case law provides us with guidance on the principles underlying company residence and where the central management and control of the company actually abides is particularly significant. Where that central management and control is exercised is a question of fact. All relevant factors, taken together, have to be taken into account in determining the residence of a company.