(1) This section applies to any amount taken into account by an IREF in computing the profits of the IREF, in respect of any disbursement or expense, not being money wholly and exclusively laid out or expended for the purposes of the IREF business (referred to in this section as the 'disallowed amount').
(2) The IREF shall be treated as receiving for the purposes of the Income Tax Acts an amount of income equal to the disallowed amount.
(3) The amount of income referred to in subsection (2) shall be charged to income tax under Case IV of Schedule D and shall be treated as income -
(a) arising in the year of assessment in which the accounting period in which the disallowed amount was taken into account ends, and
(b) against which no loss, deficit, expense or allowance may be set off.