(1) Chapter 5 of Part 4 of the Principal Act is amended by inserting the following after section 80:

"80A.

(1) In this section -

'asset' means machinery or plant;

'fair value', in relation to a leased asset, means an amount equal to such consideration as might be expected to be paid for the asset at the inception of the lease on a sale negotiated on an arm's length basis, less any grants receivable by the lessor towards the purchase of the asset;

'inception of the lease' means the date on which the leased asset is brought into use by the lessee or the date from which lease payments under the lease first accrue, whichever is the earlier;

'lease payments' means the lease payments over the term of the lease to be paid to the lessor in relation to the leased asset, and includes any residual amount to be paid to the lessor at or after the end of the term of the lease and guaranteed by the lessee or by a person connected with the lessee or under the terms of any scheme or arrangement between the lessee and any other person;

'lessee' and 'lessor' have the same meanings, respectively, as in section 403;

'normal accounting practice' means normal accounting practice in relation to the accounts of companies incorporated in the State;

'predictable useful life', in relation to an asset, means the useful life of the asset estimated at the inception of the lease, having regard to the purpose for which the asset was acquired and on the assumption that -