The Taxes Consolidation Act, 1997, is hereby amended in accordance with the following provisions of this Schedule.
1. In section 79(1), after paragraph (b) there shall be inserted the following paragraph:
"(c) For the purposes of this section a gain or loss arising to a company which results directly from a change in a rate of exchange shall include a gain or loss which results directly from an event which substitutes for the currency of a State another currency of that State where the other currency, as a result of the event, becomes the functional currency (within the meaning of section 402) of the company.".
2. In section 80(1), in the definition of "specified rate", for paragraph (a) there shall be substituted the following paragraph:
"(a) the rate known as the 3 month European Interbank Offered Rate, or".
3. In section 110(1), in the definition of "qualifying asset", in paragraph (a), for subparagraph (i) there shall be substituted the following subparagraph:
"(i) which consists o
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