an bille airgeadais, 2012 finance bill 2012 · 2020-01-28 · an bille airgeadais, 2012 finance...

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AN BILLE AIRGEADAIS, 2012

FINANCE BILL 2012

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Mar a leasaíodh sa Roghfhochoiste um Airgeadas

As amended in the Select Sub-Committee on Finance

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ARRANGEMENT OF SECTIONS

PART 1

Income Levy, Universal Social Charge, Income Tax,Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation

Section

1. Interpretation (Part 1).

Chapter 2

Universal Social Charge

2. Universal social charge: miscellaneous amendments.

3. Universal social charge: surcharge on use of propertyincentives.

Chapter 3

Income Levy and Income Tax

4. Share-based remuneration.

5. Amendment of Schedule 23A (specified occupations andprofessions) to Principal Act.

6. Amendment of section 470B (age-related relief for healthinsurance premiums) of Principal Act, etc.

7. Amendment of section 126 (tax treatment of certain benefitspayable under Social Welfare Acts) of Principal Act.

8. Relief for key employees engaged in research and develop-ment activities.

9. Amendment of section 244 (relief for interest paid on certainhome loans) of Principal Act.

[No. 5a of 2012]

10. Amendment of section 472A (relief for the long termunemployed) of Principal Act.

11. Amendment of section 473A (relief for fees paid for thirdlevel education, etc.) of Principal Act.

12. Deduction for income earned in certain foreign states.

13. Amendment of section 825B (repayment of tax where earn-ings not remitted) of Principal Act.

14. Special assignee relief programme.

15. Provisions relating to PAYE.

16. Changes relating to tax relief for lessors, carried forwardlosses and balancing charges.

17. Provisions in relation to property incentives and capitalallowances.

18. Retirement benefits.

Chapter 4

Income Tax, Corporation Tax and Capital Gains Tax

19. Amendment of section 176 (purchase of unquoted shares byissuing company or its subsidiary) of Principal Act.

20. Farm taxation.

21. Amendment of Schedule 13 (accountable persons for pur-poses of Chapter 1 of Part 18) to Principal Act.

22. Relevant contracts tax.

23. Amendment of section 482 (relief for expenditure on signifi-cant buildings and gardens) of Principal Act.

24. Amendment of section 481 (relief for investment in films) ofPrincipal Act.

25. Amendment of section 486B (relief for investment in renew-able energy generation) of Principal Act.

26. Income tax relief for investment in corporate trades —employment and investment incentive and seed capi-tal scheme.

27. Amendment of Part 29 (patents, scientific and certain otherresearch, know-how and certain training) of PrincipalAct.

28. Life assurance policies and investment funds: rates.

29. Amendment of Chapter 5 (policyholders — new basis) ofPart 26 of Principal Act.

30. Undertakings for collective investment and unit holders.

31. Amendment of section 739D (gain arising on a chargeableevent) of Principal Act.

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32. Amendment of section 739G (taxation of unit holders ininvestment undertakings) of Principal Act.

33. Amalgamations of investment undertakings and offshorefunds.

34. Amendment of section 747E (disposal of an interest in off-shore funds) of Principal Act.

35. Scheme of migration and amalgamation.

36. Amendment of Part 8 (annual payments, charges andinterest) of Principal Act.

37. Amendment of Part 8A (specified financial transactions) ofPrincipal Act.

38. Withholding tax relating to certain dividends and interest.

39. Amendment of section 198 (certain interest not to bechargeable) of Principal Act.

40. Amendment of section 80A (taxation of certain short-termleases plant and machinery) of Principal Act.

41. Amendment of section 110 (securitisation) of Principal Act.

42. Application of section 130 of Principal Act to certain non-yearly interest.

43. Income tax on payments by non-resident companies.

44. Emissions allowances.

Chapter 5

Corporation Tax

45. Amendment of section 486C (relief from tax for certain start-up companies) of Principal Act.

46. Amendment of Schedule 4 (exemption of specified non-com-mercial state-sponsored bodies from certain taxprovisions) to Principal Act.

47. Amendment of section 411 (surrender of relief betweenmembers of groups and consortia) of Principal Act.

48. Amendment of section 835D (principles for constructingrules in accordance with OECD guidelines) of Princi-pal Act.

49. Amendment of Schedule 24 (relief from income tax and cor-poration tax by means of credit in respect of foreigntax) to Principal Act.

50. Amendment of section 77 (miscellaneous special rules forcomputation of income) of Principal Act.

51. Mergers where a company is dissolved without going intoliquidation.

52. Unilateral relief (leasing income).

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53. Amendment of section 21B (tax treatment of certaindividends) of Principal Act.

54. Consequential amendments to Principal Act on expiration ofscheme of relief for certain manufacturing companies.

Chapter 6

Capital Gains Tax

55. Capital gains: rate of charge.

56. Amendment of section 533 (location of assets) of PrincipalAct.

57. Amendment of section 562 (contingent liabilities) of Princi-pal Act.

58. Certain share transactions with investment undertakings.

59. Amendment of section 598 (disposals of business or farm on“retirement”) of Principal Act.

60. Amendment of section 599 (disposals within family of busi-ness or farm) of Principal Act.

61. Amendment of section 611 (disposals to State, public bodiesand charities) of Principal Act.

62. Amendment of section 613 (miscellaneous exemptions forcertain kinds of property) of Principal Act.

63. Amendment of Schedule 15 (list of bodies for purposes ofsection 610) to Principal Act.

64. Relief for certain disposals of land or buildings.

65. Exclusion of foreign currency as asset of certain companies.

66. Amendment of section 579 (non-resident trusts) of Princi-pal Act.

67. Exemption for proceeds of disposal by sports bodies.

PART 2

Excise

68. Mineral oil tax: carbon charge.

69. Rates of tobacco products tax.

70. Amendment of Chapter 1 (interpretation, liability andpayment) of Part 2 of Finance Act 2001.

71. Amendment of Chapter 2A (intra- European Union move-ment under a suspension arrangement) of Part 2 of Fin-ance Act 2001.

72. Amendment of Chapter 3 (offences, penalties andproceedings) of Part 2 of Finance Act 2001.

73. Amendment of Chapter 4 (powers of officers) of Part 2 ofFinance Act 2001.

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74. Amendment of Chapter 5 (miscellaneous) of Part 2 of Fin-ance Act 2001.

75. Amendment of Chapter 1 (alcohol products tax) of Part 2 ofFinance Act 2003.

76. Amendment of Chapter 3 (tobacco products tax) of Part 2of Finance Act 2005.

77. Amendment of Chapter 1 (consolidation and modernisationof betting law) of Part 2 of Finance Act 2002.

78. Amendment of Chapter 1 (mineral oil tax) of Part 2 of Fin-ance Act 1999.

79. Amendment of section 65 (cesser of application of mineraloil tax to coal) of Finance Act 2010.

80. Amendment of Chapter 1 (electricity tax) of Part 2 of Fin-ance Act 2008.

81. Amendment of Chapter 2 (natural gas carbon tax) of Part 3of Finance Act 2010.

82. Amendment of Chapter 3 (solid fuel carbon tax) of Part 3 ofFinance Act 2010.

83. Vehicle registration tax.

PART 3

Value-Added Tax


85. Ministerial orders.

86. Supplies of construction services between connected persons— reverse charge.

87. Amendment of section 46 (rates of tax) of Principal Act.

88. Amendment of section 66 (issue of invoices and otherdocuments) of Principal Act.

89. Amendment of section 84 (duty to keep records) of Princi-pal Act.

90. Amendment of section 95 (transitional measures for suppliesof immovable goods) of Principal Act.

91. Amendment of section 111 (assessment of tax due) of Princi-pal Act.

92. Interest payable in certain circumstances.

93. Amendment of section 115 (penalties generally) of Princi-pal Act.

94. Amendment of Schedule 2 (zero-rated goods and services)to Principal Act.

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95. Amendment of Schedule 3 (goods and services chargeable atthe reduced rate) to Principal Act.

PART 4

Stamp Duties


97. Reduction of duty chargeable on non-residential property.

98. Relief for clearing houses.

99. Merger of companies.

100. Amendment of provisions relating to the international finan-cial services industry.

101. Carbon offsets.

102. Amendment of section 101 (intellectual property) of Princi-pal Act.

103. Grangegorman Development Agency.

104. Amendment of section 123B (cash, combined and debitcards) of Principal Act.

105. Levies on certain institutions.

106. Amendment of Schedule 2B (qualifications for applying forrelief from stamp duty in respect of transfers to youngtrained farmers) to Principal Act.

107. Modernisation of stamping of instruments: introduction ofself-assessment and consequential changes, etc.

PART 5

Capital Acquisitions Tax


109. Amendment of Schedule 2 (computation of tax) to Princi-pal Act.

110. Amendment of section 2 (interpretation) of Principal Act.

111. Amendment of provisions relating to discretionary trusts.

112. Amendment of section 36 (dispositions involving powers ofappointment) of Principal Act.

113. Amendment of provisions relating to heritage property.

114. Amendment of section 89 (provisions relating to agriculturalproperty) of Principal Act.

115. Modernisation of capital acquisitions tax administration: mis-cellaneous amendments.

116. Amendment of provision relating to payment of tax andfiling return and consequential amendments.

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PART 6

Miscellaneous


118. Amendment of section 886 (obligation to keep certainrecords) of Principal Act.

119. Amendment of section 912A (information for tax authoritiesin other countries) of Principal Act.

120. Amendment of section 851A (confidentiality of taxpayerinformation) of Principal Act.

121. Returns of certain information by investment undertakings.

122. Returns of payment transactions by payment settlers.

123. Amendment of section 898K (special arrangements for cer-tain securities) of Principal Act.

124. Amendment of section 1077E (penalty for deliberately orcarelessly making incorrect returns, etc.) of PrincipalAct.

125. Power of Collector-General to require certain persons toprovide return of property.

126. Security for certain taxes.

127. Order to produce documents or provide information.

128. Repayments and offsets of tax.

129. Modernisation of Direct Taxes Assessing Rules includingrules for Self Assessment.

130. Amendment of section 811 (transactions to avoid liability totax) of Principal Act.

131. Miscellaneous amendments relating to administration.

132. Amendment of section 195 (exemption of certain earnings ofwriters, composers and artists) of Principal Act.

133. Amendment of section 884 (returns of profits) of PrincipalAct.

134. Miscellaneous amendments: civil partners.

135. Cesser of section 161 of Finance Act 2010.

136. Amendment of section 531AA (interpretation (Part 18C)) ofPrincipal Act.

137. Amendment of Schedule 24A (arrangements made by theGovernment with the government of any territory out-side the State in relation to affording relief from doubletaxation and exchanging information in relation to tax)to Principal Act.

138. Miscellaneous technical amendments in relation to tax.

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139. Capital Services Redemption Account.

140. Care and management of taxes and duties.

141. Short title, construction and commencement.

SCHEDULE 1

Consequential Amendments to Principal Act on Expiration ofthe Scheme of Relief for Certain Manufacturing Companies

SCHEDULE 2

Reduction of Duty Chargeable on Non-residential Property

SCHEDULE 3

Modernisation of Stamping of Instruments: Introduction ofSelf-Assessment and Consequential Changes, etc.

SCHEDULE 4

Modernisation of Direct Taxes Assessing Rules IncludingRules for Self Assessment

SCHEDULE 5

Miscellaneous Amendments: Provisions Relating toAdministration

SCHEDULE 6

Miscellaneous Technical Amendments in Relation to Tax

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Acts Referred to

Asset Covered Securities Act 2001 2001, No. 47

Capital Acquisitions Tax Consolidation Act 2003 2003, No. 1

Civil Partnership and Certain Rights and Obligations ofCohabitants Act 2010 2010, No. 24

Communications Regulation (Postal Services) Act 2011 2011, No. 21

Companies Act 1963 1963, No. 33

Companies Act 1990 1990, No. 33

Customs Consolidation Act 1876 39 & 40 Vict., c.36

Finance (1909-10) Act 1910 10 Edw. 7, c.8

Finance Act 1950 1950, No. 18















Finance (Excise Duties) (Vehicles) Act 1952 1952, No. 24

Health Insurance Act 1994 1994, No. 16

Health Insurance (Miscellaneous Provisions) Act 2011 2011, No. 34

Income Tax Act 1967 1967, No. 6

Interpretation Act 2005 2005, No. 23

Minerals Development Act 1940 1940, No. 31

Pensions Act 1990 1990, No. 25

Property Values (Arbitrations and Appeals) Act 1960 1960, No. 45

Redundancy Payments Acts 1967 to 1991

Redundancy Payments Acts 1967 to 2003

Social Welfare Consolidation Act 2005 2005, No. 26

Stamp Duties Consolidation Act 1999 1999, No. 31

Succession Duty Act 1853 16 & 17 Vict., c.51

Taxes Consolidation Act 1997 1997, No. 39

Unit Trusts Act 1990 1990, No. 37

Value-Added Tax Consolidation Act 2010 2010, No. 31

Wildlife (Amendment) Act 2000 2000, No. 38

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AN BILLE AIRGEADAIS, 2012FINANCE BILL 2012

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BILLentitled

AN ACT TO PROVIDE FOR THE IMPOSITION, REPEAL,5REMISSION, ALTERATION AND REGULATION OFTAXATION, OF STAMP DUTIES AND OF DUTIESRELATING TO EXCISE AND OTHERWISE TO MAKEFURTHER PROVISION IN CONNECTION WITH FIN-ANCE INCLUDING THE REGULATION OF CUSTOMS.10

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART 1

Income Levy, Universal Social Charge, Income Tax,Corporation Tax and Capital Gains Tax

Chapter 115

Interpretation

1.—In this Part “Principal Act” means the Taxes ConsolidationAct 1997.

Chapter 2

Universal Social Charge20

2.—(1) The Principal Act is amended in the Table to subsection(1) of section 531AM—

(a) in paragraph (a)(ii) by inserting “except where such shareswere held by an employee share ownership trust,approved in accordance with Schedule 12, before 125January 2011,” after “Chapter 1 of Part 17,”,

(b) in paragraph (a)(iii) by deleting “and”,

(c) by substituting the following for paragraph (a)(iv):

“(iv) any gain exempted from income tax by vir-tue of section 519A(3) or 519D(3) after30

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Interpretation(Part 1).

Universal socialcharge:miscellaneousamendments.

such a gain is reduced by the market valueof the right referred to in subparagraph(iii), and”,

(d) by inserting the following after paragraph (a)(iv):

“(v) the ‘specified amount’ as defined in 5section 825C,”,

(e) in paragraph (a)(III) by substituting “PAYE Regulations,and” for “PAYE Regulations”,

(f) in paragraph (a)(IV) by substituting “Schedule 3.” for“Schedule 3, and”, 10

(g) by deleting paragraph (a)(V),

(h) in paragraph (b)(ii)—

(i) by substituting “(IV)” for “(V)”, and

(ii) by deleting “(iv)”,

(i) in paragraph (b)(vi) by substituting “section 531AU(1),” 15for “section 531AU(1), and”,

(j) in paragraph (b)(vii) by substituting “section 531AU(2),and” for “section 531AU(2),”, and

(k) by inserting the following after paragraph (b)(vii):

“(viii) where section 372AP applies in respect of 20an individual, the amount that the individ-ual is deemed to have received as rent inaccordance with subsection (7) of thatsection where the individual received, orwas entitled to receive, the deduction 25referred to in subsection (2) of that sectionon or after 1 January 2012,”.

(2) The Principal Act is amended in section 531AM(2) by substi-tuting “€10,036” for “€4,004”.

(3) The Principal Act is amended in section 531AN— 30

(a) by inserting the following after subsection (2):

“(2A) For the purposes of subsection (2), relevantincome shall not include any amount in respect of whichan individual is chargeable to tax under Schedule E inaccordance with section 128(2).”, 35

(b) in subsection (3) by substituting “Council Regulation (EC)No. 883/2004 of 29 April 20041” for “Council Regulation(EEC) No. 1408/71 of 14 June 1971”,

(c) by inserting the following after subsection (3):

“(3A) Where an individual is chargeable to income tax 40under Case IV of Schedule D in respect of an encashmentamount, or a deemed encashment amount, as the case maybe, under section 787TA, then—

1OJ No. L166 30.4.2004, p.1

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(a) notwithstanding subsection (1) and the Table tothis section, the individual shall be charged touniversal social charge for the tax year in whichthe income tax is charged on the full amountso charged to income tax at the rate of 4 per5cent, and

(b) the amount so chargeable to income tax shallnot be regarded as relevant income for the pur-poses of subsection (2).”,

and10

(d) in subsection (4) by substituting “subsections (2), (2A), (3)and (3A)(b)” for “subsections (2) and (3)”.

(4) The Principal Act is amended in section 531AO—

(a) by deleting subsections (2) to (12), and

(b) by inserting the following after subsection (1):15

“(1A) Where—

(a) an employer pays relevant emoluments to anemployee in the form of shares (includingstock), or

(b) an employee realises a gain by the exercise of20a right in accordance with the provisions of ascheme approved under Schedule 12A,

and where, by reason of an insufficiency of payments actu-ally made to or on behalf of the employee, the employeris unable to deduct the amount (or full amount) of the25universal social charge required to be deducted under thisPart and regulations made under this Part in respect ofthose shares or that gain, as the case may be, thatemployer shall be entitled to withhold and to realisesufficient shares to meet that universal social charge30liability.

(1B) Where subsection (1A) applies—

(a) the employee shall allow such withholding as isreferred to in that subsection, and

(b) the employer shall be acquitted and discharged35of so much of the universal social charge liab-ility as is represented by the shares withheld asif the value of those shares had been paid tothe employee.

(1C) Subsection (1A) shall not apply where the40employee has otherwise made good to the employer theamount of the universal social charge required to bededucted under this Part and regulations made under thisPart in respect of those shares or that gain, as the casemay be, as is referred to in that subsection.”.45

(5) The Principal Act is amended by deleting sections 531APand 531AQ.

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(6) The Principal Act is amended in section 531AS by insertingthe following after subsection (1):

“(1A) For the purposes of subsection (1) and, as respects again realised by an individual by the exercise of a right toacquire shares in a company, section 128B shall, with any neces- 5sary modifications, apply to universal social charge as it appliesto income tax and for this purpose—

(a) ‘relevant tax’ as referred to in section 128B shallinclude universal social charge,

(b) ‘B’ in the formula in section 128B(2) shall be the per- 10centage which is equal to the highest rate set out incolumn (2) or (3), as the case may be, of the Tableto section 531AN that is in force for the tax year inwhich the individual realises a gain by the exerciseof a right to acquire shares in a company, and 15

(c) where the Revenue Commissioners are satisfied thatthe individual is likely to be chargeable to universalsocial charge for a tax year at a rate other thanwhichever of the rates set out in column (2) or (3),as the case may be, of the Table to section 531AN is 20the highest such rate, section 128B(14) shall apply asif the reference to the standard rate was a referenceto that other rate.”.

(7) The Principal Act is amended in section 531AT by substitutingthe following for subsection (2): 25

“(2) Subsections (3) and (4) of section 531AS, as they relateto the aggregation of universal social charge and income tax,shall apply for the purposes of this section, with any necessarymodifications, as they apply to universal social charge due andpayable by a chargeable person and as if ‘For the purposes of 30subsection (2)’ were deleted in subsection (4).”.

(8) The Principal Act is amended by inserting the following aftersection 531AU:

“Universalsocial chargeand approvedprofit sharingschemes.

531AUA.—Where universal social charge ischarged on the initial market value of shares in 35accordance with subparagraph (a)(ii) of the Tableto section 531AM(1), it shall not be charged—

(a) where there is a disposal of shares, or adeemed disposal of shares, as referredto in subsections (2) and (7), respec- 40tively, of section 512, on the appro-priate percentage of the locked-invalue of those shares as construed inaccordance with subsection (1) of thatsection, or 45

(b) where there is a capital receipt withinthe meaning of section 513(1), on theappropriate percentage of the amountor value, as the case may be, of thatcapital receipt.”. 50

(9) The Principal Act is amended in section 531AAA—

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(a) by substituting the following for paragraph (a):

“(a) Chapter 1 of Part 38, in relation to the makingof returns of income, and Chapter 4 of thatPart, in relation to the making of enquiries andthe exercise of the powers, duties and5responsibilities provided for by that Chapter,”,

and

(b) in paragraphs (b) and (c) by substituting “Chapters” for“Chapter”.

(10) The Principal Act is amended in section 531AAB—10

(a) in paragraph (q) by deleting “and” where it last occurs,

(b) in paragraph (r) by substituting “appeal;” for “appeal.”,and

(c) by inserting the following after paragraph (r):

“(s) with respect to the deduction, collection and15recovery of amounts to be accounted for inrespect of notional payments, and

(t) for the making available by the Revenue Com-missioners of an electronic system or systemsto allow employers and employees to fulfil20their obligations under this Chapter and regu-lations made under this Chapter and to allowfor electronic communications between theRevenue Commissioners, officers of theRevenue Commissioners, employers,25employees and other persons pursuant to obli-gations under those provisions and for the pro-vision of enhancements or other changes tothat system or those systems, as the case maybe, and for any replacement for such system30or systems.”.

(11) The Principal Act is amended by inserting the following aftersection 531AAE (inserted by section 3):

“Delegation offunctions anddischarge offunctions byelectronicmeans.

531AAF.—Any act to be performed or functionto be discharged by the Revenue Commissioners35that is authorised or required by this Part or byregulations made under this Part may be perfor-med or discharged by any one or more of theirofficers acting under their authority or may, ifappropriate, be performed or discharged through40such electronic systems as the Revenue Commis-sioners may put in place for the time being for anysuch purpose.”.

(12) Paragraphs (a), (c) and (h)(ii) of subsection (1), (a), (b) and(d) of subsection (3) and subsections (7), (8) and (9) shall be deemed45to have had effect as on and from 1 January 2011.

(13) Subsection (2) has effect as respects the liability of an individ-ual to universal social charge for the year of assessment 2012 andeach subsequent year.

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Universal socialcharge: surchargeon use of propertyincentives.

3.—(1) Part 18D of the Principal Act is amended by inserting thefollowing after section 531AAD:

“Propertyreliefsurcharge.

531AAE.—(1) In this section—

‘aggregate of the specified property reliefs’, inrelation to a tax year and an individual, means the 5aggregate of the amounts of specified propertyreliefs used by the individual in respect of the taxyear;

‘amount of specified property relief’, in relation toa specified relief used by an individual in respect 10of a tax year, means the amount of the specifiedproperty relief used by the individual in respect ofthe tax year, determined by reference to the entryin column (3) of Schedule 25B opposite the refer-ence to the specified relief concerned in column 15(2) of that Schedule;

‘area-based capital allowance’, in relation to a taxyear and an individual, means any allowance, orpart of such allowance, made under Chapter 1 ofPart 9 as that Chapter is applied— 20

(a) by section 323, 331, 332, 341, 342, 343,344, 352, 353, 372C, 372D, 372M, 372N,372V, 372W, 372AC or 372AD, or

(b) by virtue of paragraph 11 of Schedule32, 25

for the tax year, including any such allowance, orpart of any such allowance, made for a previoustax year and carried forward from that previoustax year in accordance with Part 9;

‘balancing allowance’ means any allowance made 30under section 274;

‘specified capital allowance’, in relation to a taxyear and an individual, means any specified reliefthat is—

(a) a writing down allowance or a balancing 35allowance made for the tax year, or

(b) an allowance, or part of such allowance,made under Chapter 1 of Part 9 as thatChapter is applied by section 372AX,372AY, 843 or 843A for the tax year, 40

including any such allowance or part of such allow-ance made for a previous tax year and carried for-ward from that tax year in accordance with Part 9;

‘specified individual’, in relation to a tax year,means an individual whose aggregate income for 45the tax year is €100,000 or more;

‘specified property relief’, in relation to a tax yearand an individual, means—

16

(a) any allowance, or part of any allowance,specified in the definition of ‘area-based capital allowance’ or ‘specifiedcapital allowance’, as the case may be,or5

(b) any eligible expenditure within themeaning of Chapter 11 of Part 10, towhich section 372AP applies, which isto be taken into account in computingunder section 97(1) a deficiency in10respect of any rent from a qualifyingpremises or a special qualifying prem-ises, within the meaning of section372AK;

‘specified relief’, in relation to a tax year and an15individual, means any relief arising under, or byvirtue of, any of the provisions set out in column(2) of Schedule 25B;

‘writing down allowance’ means any allowancemade under section 272 and includes any such20allowance as increased under section 273.

(2) Any reference in this section to any speci-fied property relief being used in respect of anytax year shall be a reference to that part of thatspecified property relief to which full effect has25been given for that tax year.

(3) The amount of universal social chargewhich is to be charged on the aggregate incomefor the tax year concerned of a specified individualunder this Part shall be increased by an amount30equal to 5 per cent of that part of that aggregateincome in relation to which an amount of specifiedproperty relief or, as the case may be, the aggre-gate of the specified property reliefs, has beenused by the specified individual in that tax year.35

(4) For the purposes of this section—

(a) section 485C(3) and Schedule 25C (as ifthe references to the tax years 2006and 2007 in that Schedule were refer-ences to the tax years 2011 and 2012,40respectively) shall apply in determin-ing the amount of any specified prop-erty relief to be carried forward fromany tax year to each subsequent taxyear, and45

(b) any specified relief, which is a specifiedproperty relief, shall be treated as usedin any tax year in priority to a specifiedrelief which is not a specified propertyrelief.50

(5) Where universal social charge is payable forthe tax year 2012 in respect of a specified individ-ual’s aggregate income for a tax year, being anindividual who is a chargeable person (within the

17

Share-basedremuneration.

meaning of Part 41), section 958 shall apply andhave effect as if, in accordance with this section,universal social charge had been payable for thetax year 2011.”.

(2) Subsection (1) applies for the year of assessment 2012 and 5each subsequent year of assessment.

Chapter 3

Income Levy and Income Tax

4.—(1) The Principal Act is amended—

(a) in section 128A(4A)(d)(i)(II) by substituting “half of the 10aggregate” for “the aggregate”,

(b) in section 128E(6)(a) by substituting “for the purposes ofincome tax, income levy and universal social charge” for“income tax purposes”, and

(c) in section 985A by inserting the following after subsec- 15tion (4A):

“(4B) Where—

(a) an employer pays emoluments to an employeein the form of shares (including stock),

(b) subsection (4) applies, and 20

(c) the employee has not made good to theemployer the amount of the income taxrequired to be deducted under this Part andregulations made under this Part in respect ofthose shares, 25

then—

(i) the employer shall be entitled to withhold andto realise sufficient shares to meet that incometax liability,

(ii) the employee shall allow such withholding as is 30referred to in paragraph (i), and

(iii) the employer shall be acquitted and dischargedof such withholding as if the amount of incometax required to be deducted had been paid tothe employee.”. 35

(2) Paragraph (b) of subsection (1) shall be deemed to have effectas on and from—

(a) 1 January 2009 in the case of income levy,

18

(b) 1 January 2011 in the case of universal social charge, and

(c) 1 January 2012 in the case of income tax.

5.—(1) Schedule 23A to the Principal Act is amended by inserting“Cricketer” after “Boxer”.

(2) This section applies for the year of assessment 2012 and sub-5sequent years of assessment.

6.—(1) Section 470B of the Principal Act is amended in subsec-tion (4)—

(a) in subparagraph (i) by substituting “1 January 2013” for“1 January 2012”,10

(b) in clause (II) by inserting “but before 1 January 2011”after “2010”,

(c) in clause (III) by inserting “but before 1 January 2012”after “2011”,

(d) in clause (III) by substituting “such total annual pre-15mium,” for “such total annual premium, and”,

(e) by inserting the following after clause (III):

“(IIIa) as respects a relevant contract renewedor entered into on or after 1 January2012, the amount specified in column20(5) of the Table to this subsection cor-responding to the class of insured per-son mentioned in column (1) of thatTable or, where the payment made tothe authorised insurer is a monthly or25other instalment towards the paymentof the total annual premium dueunder the relevant contract, anamount equal to the amount so speci-fied divided by the total number of30instalments to be made to pay suchtotal annual premium, and”,

and

(f) by substituting the following for the Table to thatsubsection:35

“TABLE

Class of insured Amount Amount Amount Amount ofperson of age- of age- of age- age-

related related related related taxtax40 tax tax credit

credit credit credit

(1) (2) (3) (4) (5)

Aged 50 years andover but less than 55years on the date the45relevant contract isrenewed or entered

19

Amendment ofSchedule 23A(specifiedoccupations andprofessions) toPrincipal Act.

Amendment ofsection 470B (age-related relief forhealth insurancepremiums) ofPrincipal Act, etc.

Amendment ofsection 126 (taxtreatment of certainbenefits payableunder SocialWelfare Acts) ofPrincipal Act.

Class of insured Amount Amount Amount Amount ofperson of age- of age- of age- age-

related related related related taxtax tax tax credit

credit credit credit

(1) (2) (3) (4) (5)

into, as the case maybe. €200.00 €200.00 Nil Nil

Aged 55 years andover but less than 60years on the date the 5relevant contract isrenewed or enteredinto, as the case maybe. €200.00 €200.00 Nil Nil

Aged 60 years and 10over but less than 65years on the date therelevant contract isrenewed or enteredinto, as the case may 15be. €500.00 €525.00 €625.00 €600.00

Aged 65 years andover but less than 70years on the date therelevant contract is 20renewed or enteredinto, as the case maybe. €500.00 €525.00 €625.00 €975.00

Aged 70 years andover but less than 75 25years on the date therelevant contract isrenewed or enteredinto, as the case maybe. 30€950.00 €975.00 €1,275.00 €1,400.00

Aged 75 years andover but less than 80years on the date therelevant contract isrenewed or entered 35into, as the case maybe. €950.00 €975.00 €1,275.00 €2,025.00

Aged 80 years andover but less than 85years on the date the 40relevant contract isrenewed or enteredinto, as the case maybe. €1,175.00 €1,250.00 €1,725.00 €2,400.00

Aged 85 years and 45over on the date therelevant contract isrenewed or enteredinto, as the case maybe. 50€1,175.00 €1,250.00 €1,725.00 €2,700.00

”.

(2) The amendment to section 470B by section 5(c) of the HealthInsurance (Miscellaneous Provisions) Act 2011 shall be deemednever to have been enacted.

7.—Section 126 of the Principal Act is amended for the year of 55assessment 2012 and each subsequent year of assessment by deletingsubsection (5).

20

8.—The Principal Act is amended in Chapter 1 of Part 15 byinserting the following after section 472C:

“472D.—(1) In this section—

‘associated company’, in relation to a relevant employer, meansa company which is that employer’s associated company within5the meaning of section 432;

‘control’ has the same meaning as in section 432;

‘emoluments’ has the same meaning as in Chapter 4 of Part 42;

‘key employee’ means an individual—

(a) who—10

(i) is not, and has not been, a director of his or heremployer or an associated company and is notconnected to such a director,

(ii) does not, and did not, have a material interest inhis or her employer or an associated company15and is not connected to a person who has sucha material interest, and

(iii) in the accounting period for which his or heremployer was entitled to claim relief undersection 766(2), performed 75 per cent or more20of the duties of his or her employment in theconception or creation of new knowledge, prod-ucts, processes, methods or systems,

and

(b) 75 per cent or more of the cost of the emoluments that25arise from his or her employment with that relevantemployer qualify as expenditure on research anddevelopment under section 766(1)(a) in the account-ing period referred to in paragraph (a)(iii);

‘material interest’, in relation to a company, means the30beneficial ownership of or ability to control, directly or throughthe medium of a connected company or connected companiesor by any other indirect means, more than 5 percent of the ordi-nary share capital of the company;

‘ordinary share capital’, in relation to a company, means all the35issued share capital (by whatever name called) of the company;

‘relevant emoluments’ means emoluments paid by a relevantemployer to a key employee;

‘relevant employer’ means a company that is entitled to reliefunder section 766(2) and that employs a key employee;40

‘tax year’ means a year of assessment for income tax purposes.

(2) (a) Where under section 766(2A) a relevant employersurrenders an amount for the benefit of a keyemployee, then subject to subsection (3), on the

21

Relief for keyemployees engagedin research anddevelopmentactivities.

making of a claim, that employee shall be entitledfor a tax year to have the income tax charged on hisor her relevant emoluments for that tax year reducedby the amount surrendered.

(b) The tax year referred to in paragraph (a) is the tax 5year following the tax year during which the account-ing period of the relevant employer ends in respectof which the amount surrendered under section766(2A) relates.

(c) Notwithstanding that, for the tax year for which a 10claim is made under this section, an employee is nolonger a key employee of the company that surren-dered an amount referred to in paragraph (a) but isan employee of that company, then he or she shallbe entitled to have the income tax charged on emolu- 15ments from that company for that tax year reducedby the amount so referred to, or the balance of thatamount, as appropriate.

(3) (a) Notwithstanding subsection (2), the amount surren-dered under section 766(2A) shall not for any tax 20year reduce the amount of income tax payable onthe total income of a key employee including, wheresection 1017 or 1019 apply, on the total income ofhis or her spouse or his or her civil partner to notless than the income tax that would be charged if 25such total income were charged to income tax at arate of 23 per cent.

(b) Paragraph (a) also applies where subsection (2) andparagraph (a) or (b) of subsection (4) applies for thesame tax year. 30

(4) (a) Where, by virtue of subsection (3), part of the amountsurrendered under section 766(2A) by a relevantemployer to a key employee cannot be used by thatemployee to reduce the income tax charged on hisor her relevant emoluments for the tax year referred 35to in subsection (2)(b), that employee shall beentitled to have the income tax charged on his or herrelevant emoluments for the next tax year reducedby that part.

(b) If and so far as any part of the amount surrendered 40by a relevant employer under section 766(2A) to akey employee carried forward under paragraph (a)to the next tax year cannot be used in that next taxyear, then it may be used in the next following taxyear and so on for each succeeding tax year until the 45full amount of that part has been used or until thekey employee referred to in paragraph (a) ceases tobe an employee of the relevant employer that sur-rendered the amount under section 766(2A).

(5) The amount that a relevant employer is entitled to surren- 50der, and so surrenders, under section 766(2A) to a key employeeis exempt from income tax and shall not be reckoned in comput-ing income for the purposes of the Income Tax Acts.

(6) No reduction shall be given under this section unless alltax deducted from emoluments paid by the relevant employer 55

22

to the key employee for the tax year to which the claim relateshas been remitted by the relevant employer to the Collector-General in accordance with regulations made under Chapter 4of Part 42.

(7) Notwithstanding anything contained in this section, where5for any tax year that the income tax charged on the emolumentsof an individual is reduced by any part of an amount surren-dered by his or her employer under section 766(2A) and it isfound subsequently that that individual is not for any reason(including that the initial amount, within the meaning of section10766(2C), is not authorised by section 766) entitled to thatreduction, or part of that reduction, then that individual shallpay to the Revenue Commissioners an amount of tax equal tothat reduction, or equal to part of that reduction, as appropriate,of income tax granted under this section for that tax year.15

(8) Notwithstanding the obligation on a company undersection 766(2C) to notify a key employee of a relevant author-ised amount (within the meaning of that section), where suchnotification is not received by the key employee, subsection (6)shall apply as if such notification had been received.20

(9) Where for a tax year, an individual makes a claim forrelief under this section, the individual shall, notwithstandinganything to the contrary in section 950 or 1084, be deemed forthat tax year to be a chargeable person for the purposes ofPart 41.”.25

9.—As respects the year of assessment 2012 and subsequent yearsof assessment, section 244 of the Principal Act is amended—

(a) in subsection (1)(a), in the definition of “relievableinterest”, by substituting “31 December 2012” for “31December 2011”,30

(b) in subsection (1A) by substituting the following for para-graph (b):

“(b) Notwithstanding paragraph (a), this sectionshall continue to apply for the year of assess-ment 2010 and subsequent years of assessment35up to and including the year of assessment 2017in respect of qualifying interest paid in respectof a qualifying loan taken out on or after 1January 2004 and on or before 31 December2012.”,40

(c) in subsection (1A)(c)(i) by substituting “paragraph (b)”for “paragraph (b)(i) or (ii)”,

(d) in subsection (2)(a)(i) by substituting “subsection(1A)(b)” for “subsection (1A)(b)(i)”, and

(e) in subsection (2)(a) by substituting the following for sub-45paragraph (ii):

“(ii) notwithstanding subparagraph (i), 30 percent for the year of assessment 2012 andsubsequent years of assessment up to andincluding the year of assessment 2017 as50respects qualifying interest paid on a

23

Amendment ofsection 244 (relieffor interest paid oncertain home loans)of Principal Act.

Amendment ofsection 472A (relieffor the long termunemployed) ofPrincipal Act.

Amendment ofsection 473A (relieffor fees paid forthird leveleducation, etc.) ofPrincipal Act.

Deduction forincome earned incertain foreignstates.

qualifying loan taken out on or after 1January 2004 and on or before 31December 2008 to purchase anindividual’s—

(I) first qualifying residence, or 5

(II) second or subsequent qualifying resi-dence but only where the first qualify-ing residence was purchased on orafter 1 January 2004.”.

10.—As respects the year of assessment 2012 and each subsequent 10year of assessment, section 472A(1)(a) of the Principal Act isamended in the definition of “qualifying individual”, in paragraph(i)(I), by substituting “and, in respect of that period of unemploy-ment, is entitled to credited contributions in accordance with section33 of the Act of 2005 and regulations made under that section or 15has been in receipt of” for “and has, in respect of that period ofunemployment, been in receipt of”.

11.—Section 473A of the Principal Act is amended for the year ofassessment 2012 and each subsequent year of assessment in subsec-tion (4A)— 20

(a) in paragraph (a) by substituting “€2,250” for “€2,000”, and

(b) in paragraph (b) by substituting “€1,125” for “€1,000”.


(a) in Part 34 by inserting the following after section 823:

“823A.—(1) In this section— 25

‘qualifying day’, in relation to an office or employment ofan individual, means a day on or after 1 January 2012which is one of at least 4 consecutive days throughout thewhole of which the individual is present in a relevant statefor the purposes of the performance of the duties of the 30office or employment and which (taken as a whole) aresubstantially devoted to the performance of such duties,but no day shall be counted more than once as a qualify-ing day;

‘relevant office or employment’ means an office or 35employment part of the duties of which are performed ina relevant state on a qualifying day;

‘relevant period’, in relation to a year of assessment,means a continuous period of 12 months part only ofwhich is comprised in the year of assessment; 40

‘relevant state’ means the Federative Republic of Brazil,the Russian Federation, the Republic of India, the PeoplesRepublic of China or the Republic of South Africa;

‘the specified amount’, in relation to a year of assessmentand an individual, means an amount determined by the 45formula—

24

D × E

F

where—

D is the number of qualifying days in the year ofassessment in relation to the individual,5

E is all the income, profits or gains that arise inthe year of assessment from a relevant officeor employment, whether chargeable underSchedule D or E, and includes so much of anygain to which section 128 applies on which tax10is payable in the State where such gain isrealised by the exercise, assignment or releaseof a right obtained by the individual as anoffice holder or employee in the relevant officeor employment, after deducting any contri-15bution or qualifying premium in respect ofwhich there is provision for a deduction undersection 774(7), 787, 787E or 787N butexcluding—

(a) any expense to which section 118 applies,20

(b) any amount treated as emoluments of anemployment under section 121(2)(b)(ii) by vir-tue of a car being made available by reason ofthe employment,

(c) any sum treated for the purposes of section 11225as a perquisite of an office or employment byvirtue of section 122,

(d) any payment to which section 123 applies, or

(e) any sum deemed to be profits or gains arising oraccruing from an office or employment by vir-30tue of section 127(2),

and

F is the aggregate number of days in the year ofassessment that the individual held a relevantoffice or employment.35

(2) (a) Subject to paragraph (b), this section shallapply to—

(i) an office of director of a company whichis within the charge to corporation tax, orwould be within the charge to corporation40tax if it were resident in the State, andwhich carries on a trade or profession,

(ii) an employment other than—

(I) an employment the emoluments ofwhich are paid out of the revenue of45the State, or

25

(II) an employment with any board, auth-ority or other similar body establishedby or under statute.

(b) This section does not apply to income from anoffice or employment that— 5

(i) is chargeable to tax in accordance withsection 71(3), or

(ii) is income to which section 472D, 822, 825Aor 825C applies.

(3) Where for any year of assessment an individual resi- 10dent in the State makes a claim in that behalf to and satis-fies an authorised officer that either—

(a) the number of days in that year which are quali-fying days in relation to an office or employ-ment of the individual (together with any days 15which are qualifying days in relation to anyother such office or employment of theindividual), or

(b) the number of such days referred to in para-graph (a) in a relevant period in relation to that 20year and no part of which period is comprisedin any other relevant period,

amounts to at least 60 days, there shall be deducted fromthe income, profits or gains of the individual from alloffices or employments assessable under Schedule D or E, 25as may be appropriate, an amount equal to the specifiedamount in relation to that office or employment or thoseoffices or employments but that amount, or the aggregateof those amounts where there is more than one such officeor employment, shall not exceed €35,000. 30

(4) Notwithstanding anything in the Tax Acts, theincome, profits or gains from an office or employmentshall for the purposes of this section be deemed not toinclude any amounts paid in respect of expenses in respectof which a deduction would be due under section 114. 35

(5) Where for a year of assessment an individual isentitled to relief under Part 35 for tax paid under the lawsof a relevant state on the amount of income, profits orgains from a relevant office or employment attributableto the performance of the duties of the relevant office or 40employment on qualifying days in that relevant state, thespecified amount shall be reduced by the amount of suchincome, profits or gains.”,

and

(b) in Schedule 25B by inserting the following after the matter 45set out opposite reference number 48:

26

“

48A. Section 823A An amount equal to the total(deduction for income amount deducted from theearned in certain individual’s total income for the taxforeign states).5 year under section 823A.

”.

(2) This section shall apply as respects the years of assessment2012, 2013 and 2014.

13.—Part 34 of the Principal Act is amended in section 825B—

(a) by inserting the following after subsection (1A):10

“(1B) This section shall not apply for the tax year 2012or any subsequent tax year.

(1C) Notwithstanding subsection (1B), this section shallcontinue to apply—

(a) for the tax years 2012 and 2013 but only as15respects relevant employees who had anentitlement to relief under this section for thefirst time in the tax year 2009,

(b) for the tax years 2012, 2013 and 2014 but onlyas respects relevant employees who had an20entitlement to relief under this section for thefirst time in the tax year 2010, and

(c) for the tax years 2012, 2013, 2014 and 2015 butonly as respects relevant employees who hadan entitlement to relief under this section for25the first time in the tax year 2011.

(1D) Where for a tax year a relevant employee makesa claim under this section, relief shall not be given undersection 823A, 825C or 472D for that tax year.”,

and30

(b) in subsection (5)(b) by substituting “a reference to the endof the tax year in which the emoluments were remittedfor the reference to the end of the tax year to which theassessment relates” for “a reference to the end of thetax year in which the emoluments were received for the35reference to the end of the tax year in which the emolu-ments were remitted”.

14.—The Principal Act is amended in Part 34 by inserting the fol-lowing after section 825B:

“825C.—(1) In this section—40

‘associated company’, in relation to a relevant employer, meansa company which is the relevant employer’s associated companywithin the meaning of section 432;

27

Amendment ofsection 825B(repayment of taxwhere earnings notremitted) ofPrincipal Act.

Special assigneerelief programme.

‘relevant employer’ means a company that is incorporated, andtax resident, in a country or jurisdiction with the government ofwhich arrangements are for the time being in force by virtue ofsubsection (1) or (1B) of section 826;

‘relevant employment’, in relation to a relevant employee, 5means an employment held by the relevant employee with arelevant employer;

‘relevant income’, in relation to a relevant employee and a taxyear, means the relevant employee’s income, profits or gains fora tax year from an employment with a relevant employer or 10with an associated company, including any specified amount forwhich a deduction is claimed under subsection (3) but excludingthe following:

(a) any expense to which section 118 applies;

(b) any amount treated as emoluments of an employment 15under section 121(2)(b)(ii);

(c) any sum treated for the purposes of section 112 as aperquisite of an employment by virtue of section 122;

(d) any payment to which section 123 applies;

(e) any sum deemed to be profits or gains arising or 20accruing from an employment by virtue of section127(2);

(f) any bonus payment, whether contractual or otherwise;

(g) any gain to which section 128 applies;

(h) any shares or share based remuneration provided by 25or on behalf of the relevant employer or associatedcompany of the relevant employer;

‘Revenue officer’ means an officer of the Revenue Com-missioners;

‘specified amount’, in relation to a relevant employee and a tax 30year, means an amount determined by the formula—

(A–B) × 30 per cent

where—

A is the amount of the relevant employee’s income, profits orgains from his or her employment with a relevant employer 35or associated company for the tax year, excluding anyamount that is not assessed to tax in the State, and afterdeducting any contribution or qualifying premium inrespect of which there is provision for a deduction undersection 774(7), 787, 787E or 787N, but where this amount 40exceeds €500,000, A shall be €500,000 (in this sectionreferred to as the ‘upper threshold’), and

B is €75,000 (in this section referred to as the ‘lower threshold’);

‘tax year’ means a year of assessment for income tax purposes.

28

(2) (a) In this section ‘relevant employee’ means an individ-ual who—

(i) for the whole of the 12 months immediatelybefore his or her arrival in the State was a fulltime employee of a relevant employer and exer-5cised the duties of his or her employment forthat relevant employer outside the State,

(ii) arrives in the State in any of the tax years 2012,2013 or 2014, at the request of his or her rel-evant employer to—10

(I) perform in the State the duties of his or heremployment for that employer, or

(II) to take up employment in the State with anassociated company,

(iii) performs the duties of his or her employment in15the State for that relevant employer or for thatassociated company, as appropriate, for a mini-mum period of 12 consecutive months from thedate he or she takes up residence in the State,and20

(iv) was not resident in the State for the 5 tax yearsimmediately preceding the tax year in which heor she first arrives in the State for the purposesof performing the duties referred to in subpara-graph (iii).25

(b) In determining whether the duties of an employmentare performed in the State, any duties performedoutside the State, the performance of which ismerely incidental to the performance of those dutiesin the State, shall be treated as having been perfor-30med in the State.

(3) (a) Where, for a tax year, a relevant employee—

(i) is resident in the State for tax purposes and is notresident elsewhere,

(ii) performs in the State the duties of his or her35employment with a relevant employer or theduties of an employment with an associatedcompany, and

(iii) has relevant income from his or her relevantemployer or from the associated company which40is not less than €75,000,

and makes a claim in that behalf, then that relevantemployee shall be entitled, in respect of each of the 5consecutive tax years commencing with the tax yearfor which he or she is first entitled to relief under this45section, to have an amount of income, profits or gainsfrom his or her employment with a relevant employeror from his or her employment with an associatedcompany equal to the specified amount deductedfrom the income, profits or gains to be assessed on50that relevant employee.

29

(b) A claim made under this section shall be accompaniedby a certificate from a relevant employer or associ-ated company, as the case may be, confirming thatthe conditions set out in subparagraphs (i), (ii) and(iii) of subsection (2)(a) are satisfied. 5

(4) A relevant employee shall be first entitled to claim reliefunder this section only for—

(a) the first tax year in which he or she arrives in theState for the purposes set out in subsection (2)(a)(ii)provided that for that tax year he or she is resident 10in the State for tax purposes and not residentelsewhere,

(b) if not resident in the State for tax purposes for thatfirst tax year, the tax year following that first yearprovided that for that following tax year he or she is 15resident in the State and not resident elsewhere, or

(c) where in that first tax year, he or she is resident in theState for tax purposes and is also resident elsewhere,the tax year following that first tax year providedthat for that following tax year he or she is resident 20in the State for tax purposes and not residentelsewhere.

(5) Where a relevant employee performs in the State theduties of a relevant employment or the duties of an employmentwith an associated company for less than an entire tax year in 25respect of which a claim under this section is made, the upperand lower thresholds and the amount of relevant income shallbe reduced proportionately.

(6) In any tax year in which a relevant employee is entitledto make a claim for relief under subsection (3), the payment or 30reimbursement by the relevant employer or by an associatedcompany of—

(a) the reasonable costs associated with one return tripfrom the State for the relevant employee, his or herspouse or civil partner, and a child of the relevant 35employee or of the relevant employee’s spouse orcivil partner to—

(i) the country of residence of the relevant employeebefore his or her arrival in the State,

(ii) the country of residence of the relevant employee 40at the time of first employment by the relevantemployer, or

(iii) the country of which the relevant employee orhis or her spouse or civil partner is a national,

and 45

(b) the cost of fees, not exceeding €5,000 per annum inrespect of each child of the relevant employee oreach child of his or her spouse or civil partner, paidto a school established in the State and which hasbeen approved by the Minister for Education and 50

30

Skills for the purposes of providing primary or post-primary education to students,

shall not be chargeable to tax.

(7) Where for a tax year a relevant employee makes a claimfor relief under this section—5

(a) relief shall not be given under section 823A, 825A or472D for that tax year, and

(b) section 71(3) shall not apply to any of the income,profits or gains from an employment with a relevantemployer or with an associated company.10

(8) Where for a tax year a relevant employee makes a claimfor relief under this section, the relevant employee shall, not-withstanding anything to the contrary in section 950 or 1084, bedeemed for that tax year to be a chargeable person for the pur-poses of Part 41.15

(9) Notwithstanding the requirement on a relevant employeror associated company, as the case may be, to deduct tax underChapter 4 of Part 42 on the specified amount, no such taxdeduction need be made where, following an application by therelevant employer or associated company, as appropriate, a20Revenue officer confirms in writing that no such deduction needbe made.

(10) Where for a tax year a relevant employer or associatedcompany, as the case may be, certifies that an employee meetsthe conditions as set out in subparagraphs (i), (ii) and (iii) of25subsection (2)(a), the relevant employer or associated companyshall be required to deliver to the Revenue Commissioners anannual return setting out—

(a) in respect of each such employee—

(i) the name and PPS Number, and30

(ii) the amount of income, profits or gains in respectof which tax was not deducted in accordancewith subsection (9),

and

(b) details of the increase in the number of employees35employed, or details of the number of employeesretained, by the relevant employer or associatedcompany as a result of the assignment to the Stateof employees who benefit under this section.

(11) Where for a tax year a relevant employee is entitled to40relief under Part 35 for tax paid, under the laws of a territoryother than the State, on the income, profits or gains from anemployment with the relevant employer or with an associatedcompany, the amount of such income, profits or gains shall beexcluded from the construction of ‘A’ in the formula in the45definition of ‘specified amount’ in subsection (1).

(12) Notwithstanding anything in the Tax Acts, the income,profits or gains from an employment with a relevant employeror with an associated company shall, for the purposes of this

31

Provisions relatingto PAYE.

section, be deemed not to include any amounts paid in respectof expenses for which deductions would be due under section114.”.

15.—Chapter 4 of Part 42 of the Principal Act is amended—

(a) in section 986(1)(m) by substituting “appropriate,” for 5“appropriate.”,

(b) in section 986(1) by inserting the following after para-graph (m):

“(n) for the making available by the Revenue Com-missioners of an electronic system or systems 10to allow employers and employees to fulfiltheir obligations under this Chapter and regu-lations made under this Chapter and to allowfurther for electronic communications betweenthe Revenue Commissioners, officers of the 15Revenue Commissioners, employers andemployees and other persons pursuant to obli-gations under those provisions and for the pro-vision of enhancements or other changes tothat system or those systems, as the case may 20be, and for any replacement for any suchsystem or systems,

(o) for requiring every employer who makes a pay-ment to which this Chapter applies to anemployee to notify the Revenue Commis- 25sioners within the period specified in the regu-lations of the employee particulars specified inthe regulations,

(p) for requiring every employer who pays emolu-ments to which this Chapter applies exceeding 30the limit specified in subsection (5) to registerwith the Revenue Commissioners within thetime limit specified in the regulations.”,

(c) in section 987(1) by inserting the following after para-graph (c): 35

“(d) to register with the Revenue Commissioners inaccordance with Regulation 7 of the IncomeTax (Employment) (Consolidated) Regu-lations 2001 (S.I. No. 559 of 2001), or

(e) to keep and maintain a register of employees in 40accordance with Regulation 8 of the IncomeTax (Employment) (Consolidated) Regu-lations 2001 (S.I. No. 559 of 2001),”,

(d) in section 990(1A)(a) by substituting “may” for “shall” ineach place, 45

(e) in section 990(2) by substituting “under this section” for“under subsection (1)”,

(f) in section 990(3) by substituting “under this section” for“under subsection (1)”,

32

(g) in section 997A(4) by substituting “paid by the companyin a year of assessment, the tax remitted for that year ofassessment” for “paid by the company, the tax remit-ted”, and

(h) in section 997A by inserting the following after subsec-5tion (6):

“(7) Notwithstanding section 960G and for the pur-poses of the application of this section, where a companyhas an obligation to remit any amount by virtue of theprovisions of—10

(a) the Social Welfare Consolidation Act 2005 andregulations made under that Act, as respectsemployment contributions,

(b) Part 18D and regulations made under that Part,as respects universal social charge, and15

(c) this Chapter and regulations made under thisChapter, as respects income tax,

any amount remitted by the company for a year of assess-ment shall be set—

(i) firstly against employment contributions,20

(ii) secondly against universal social charge, and

(iii) lastly against income tax.

(8) Where any person is aggrieved by a decision of theRevenue Commissioners on a claim for credit for taxdeducted from emoluments, in so far as that decision is25made by reference to any provision of this section, theprovisions of section 949 shall apply to such decision as ifit were a determination on a matter referred to in section864.”.

16.—(1) Section 372AP of the Principal Act is amended—30

(a) in subsection (1) by deleting the definition of “relevantday”,

(b) in subsection (1), in paragraph (b)(ii) of the definition of“relevant period”, by substituting “after the date of suchcompletion;” for “after the date of such completion,”,35

(c) in subsection (1), in the definition of “relevant period”, bydeleting all of the words from “but in relation to a prem-ises” to the end of the definition,

(d) in subsection (2) by substituting “Subject to subsections(3), (4) and (5),” for “Subject to subsections (3), (4), (5),40(8A), (8B) and (8C),”,

(e) in subsection (3) by deleting paragraph (c),

(f) in subsection (7) by substituting the following for “anamount as rent from that premises equal to the amount

33

Changes relating totax relief for lessors,carried forwardlosses and balancingcharges.

of that deduction or, as the case may be, the aggregateamount of those deductions.”:

“an amount as rent from that premises equal to theamount determined by the formula—

A – B 5

where—

A is the amount of the deduction or, as the casemay be, the aggregate amount of thedeductions under subsection (2) in respect ofeligible expenditure incurred on or in relation 10to the premises, and

B is that part of the amount of any excess (withinthe meaning of section 384) that is attributableto the deduction or, as the case may be, theaggregate amount of the deductions under sub- 15section (2) in respect of eligible expenditureincurred on or in relation to the premises andwhich has been carried forward under section384 to the year of assessment in which eitherof the events, referred to in paragraphs (a) and 20(b), occurs.”,

(g) in subsection (8) by deleting paragraph (c), and

(h) by deleting paragraphs (8A), (8B), (8C) and (8D).

(2) Section 384 of the Principal Act is amended by inserting thefollowing after subsection (2): 25

“(2A) Where section 372AP(7) applies, the amount of theexcess, which by virtue of subsection (2) has been carried for-ward to a year of assessment in which either of the eventsreferred to in section 372AP(7) occurs, shall be reduced by theamount represented by B in the formula in that section and this 30section shall not apply in that year of assessment or in any sub-sequent year of assessment to the amount of that reduction.”.

(3) Section 485C of the Principal Act is amended—

(a) in subsection (1), in the definition of “amount of specifiedrelief”, by inserting “but subject to subsection (1A),” 35after “tax year,”, and

(b) by inserting the following after subsection (1):

“(1A) Where a balancing charge is made under section274, in relation to a building or structure, on an individualfor a tax year, then— 40

(a) to the extent that any unused capital allowancesattributable to capital expenditure incurred onthe construction or refurbishment of thatbuilding or structure, have been carried for-ward in accordance with section 304 or 305 to 45the tax year, and are used in that tax year toreduce the amount of the balancing charge,those allowances so used shall not be treated

34

as an amount of specified relief under thisChapter, and

(b) any amount by which the balancing charge hasbeen reduced in the manner referred to inparagraph (a), shall not be taken into account5for the purposes of determining the adjustedincome of the individual for the tax year.”.

(4) (a) Subsections (1)(f) and (2) apply to an event referred to inparagraph (a) or (b) of section 372AP(7) of the PrincipalAct that occurs on or after 1 January 2012.10

(b) Subsection (3) applies to a balancing charge (within themeaning of section 274 of the Principal Act) that is madeon or after 1 January 2012.

17.—Part 12 of the Principal Act is amended by substituting thefollowing for Chapter 4A (inserted by section 23 of the Finance15Act 2011):

“Chapter 4A

Termination of carry forward of certain losses

Interpretationand general(Chapter 4A).

409F.—(1) This Chapter applies notwithstand-ing any other provision of the Tax Acts.20

(2) In this Chapter—

‘active partner’ has the same meaning as insection 409A;

‘active trader’ has the same meaning as in section409D;25

‘area-based capital allowance’ means any allow-ance, or part of such allowance, made under Chap-ter 1 of Part 9 as that Chapter is applied—

(a) by section 323, 331, 332, 341, 342, 343,344, 352, 353, 372C, 372D, 372M, 372N,30372V, 372W, 372AC or 372AD for achargeable period, or

(b) by virtue of paragraph 11 of Schedule32 for a chargeable period,

including any such allowance, or part of any such35allowance, made for a previous chargeable periodand carried forward from that previous chargeableperiod in accordance with Part 9;

‘balancing allowance’ and ‘balancing charge’ meanany allowance or charge, as the case may be, made40under section 274;

‘capital allowance’ means any allowance, or part ofsuch allowance, specified in the definition of ‘area-based capital allowance’ or ‘specified capitalallowance’;45

35

Provisions inrelation to propertyincentives andcapital allowances.

‘chargeable period’ has the same meaning as insection 321 and a reference to a chargeable periodor its basis period shall be construed in accordancewith subsection (2) of that section;

‘relevant accounting period’ means the later of— 5

(a) the accounting period which beginsimmediately after the accountingperiod in which the tax life of thebuilding or structure has ended, or

(b) the accounting period, or the first 10accounting period if there are morethan one, ending in 2015;

‘relevant chargeable period’ means the later of—

(a) the chargeable period which beginsimmediately after the chargeable 15period in which the tax life of thebuilding or structure has ended, or

(b) the chargeable period, or the firstchargeable period if there are morethan one, ending in 2015; 20

‘relevant tax year’ means the later of—

(a) the tax year which begins immediatelyafter the tax year in which the tax lifeof the building or structure has ended,or 25

(b) the tax year 2015;

‘specified capital allowance’ means any specifiedrelief that is—

(a) a writing down allowance or a balancingallowance made for a chargeable 30period, or

(b) an allowance, or part of such allowance,made under Chapter 1 of Part 9 as thatChapter is applied by section 372AX,372AY, 843 or 843A for a chargeable 35period,

including any such allowance or part of such allow-ance made for a previous chargeable period andcarried forward from that previous chargeableperiod in accordance with Part 9; 40

‘specified relief’ has the same meaning as insection 485C;

‘tax life’, in relation to a building or structure,means the appropriate period referred to insection 272(4) in respect of that building or struc- 45ture, after the end of which period no capitalallowance may be made following the disposal of

36

the relevant interest (within the meaning ofsection 269) in that building or structure;

‘tax year’ means a year of assessment;

‘writing down allowance’ means any allowancemade under section 272 and includes any such5allowance as increased under section 273.

Termination ofcapitalallowances.

409G.—(1) As respects any tax year, theamount of any specified capital allowance, inrelation to a building or structure, that is availableto be carried forward, in accordance with section10304 or 305, to a relevant tax year or to any sub-sequent tax year, shall, subject to subsections (5)and (6), be zero for all the purposes of the TaxActs.

(2) As respects any accounting period, the15amount of any specified capital allowance, inrelation to a building or structure, that—

(a) is available to be carried forward to arelevant accounting period, or to anysubsequent accounting period, in20accordance with section 308(3), or

(b) may be set, in accordance with section308(4), against the profits of anaccounting period preceding the rel-evant accounting period to which para-25graph (a) applies,

shall, subject to subsection (6), be zero for all thepurposes of the Tax Acts.

(3) As respects any tax year, the amount of anyarea-based capital allowance, in relation to a30building or structure, that is available to be carriedforward to a relevant tax year or to any sub-sequent tax year, in accordance with section 304or 305, as those provisions are applied or modifiedby any other provision of the Tax Acts shall, sub-35ject to subsections (5) and (6), be zero for all thepurposes of those Acts.

(4) As respects any accounting period, theamount of any area-based capital allowance, inrelation to a building or structure, that—40

(a) is available to be carried forward to arelevant accounting period or to anysubsequent accounting period, inaccordance with section 308(3), or

(b) may be set, in accordance with section45308(4), against the profits of anaccounting period preceding the rel-evant accounting period to which para-graph (a) applies,

shall, subject to subsection (6), be zero for all the50purposes of the Tax Acts.

37

Retirementbenefits.

(5) Subsections (1) and (3) shall not apply toan individual where any capital allowance is madein taxing a trade in relation to which trade theindividual is an active partner or an active trader.

(6) Notwithstanding subsections (1) to (4), 5where in a relevant chargeable period or a sub-sequent chargeable period a balancing charge fallsdue to be made on a person in relation to anybuilding or structure, any capital allowance inrelation to that building or structure which would, 10but for those subsections, have been carried for-ward to that chargeable period may be set againstthat balancing charge and against no other income,profits or gains in that or any subsequent or pre-ceding chargeable period.”. 15

18.—(1) Chapter 1 of Part 30 of the Principal Act is amended insection 772—

(a) in subsection (3A) by substituting the following for theconstruction of “A” in the formula in paragraph (a):

“A is— 20

(I) the amount equal to the value of the rel-evant individual’s accrued rights under thescheme (including accrued rights whichrelate to additional voluntary contri-butions under the scheme) exclusive of 25any lump sum paid in accordance withsubsection (3)(f), or

(II) the amount equal to the value of the rel-evant individual’s accrued rights under thescheme which relate to additional volun- 30tary contributions paid by that individualexclusive of any part of that amount paidby way of lump sum in accordance withsubsection (3)(f) in conjunction with thescheme rules, and”, 35

(b) in subsection (3A)(aa) by substituting the following forsubparagraph (ii):

“(ii) clause (I) of the construction of ‘A’ in theformula in paragraph (a) had never beenenacted.”, 40

(c) in subsection (3B)(b) by substituting “other than in thecase of an individual referred to in clause (II) of the con-struction of ‘A’ in the formula in subsection (3A)(a) andan individual referred to in subsection (3A)(aa)” for“other than in the case of an individual referred to in 45subsection (3A)(aa)”, and

(d) by inserting the following after subsection (3G):

“(3H) A retirement benefits scheme shall neither ceaseto be an approved scheme nor shall the Revenue Commis-sioners be prevented from approving a retirement benefits 50scheme for the purposes of this Chapter because of any

38

provision in the rules of the scheme allowing a memberwho comes within the provisions of section 787TA to exer-cise an option in accordance with that section requiring anamount representing the value of, or part of the value of,the member’s accrued rights under the scheme at the date5of the exercise of the option to be transferred by the trus-tees of the scheme to the member.”.

(2) Chapter 2 of Part 30 of the Principal Act is amended in section784 by inserting the following after subsection (2D):

“(2E) Notwithstanding any other provision of this Chapter, a10retirement annuity contract shall not cease to be an annuity con-tract for the time being approved by the Revenue Commis-sioners, nor shall the Revenue Commissioners be preventedfrom approving such a contract, notwithstanding that the con-tract provides for the annuity secured by the contract for an15individual to be commuted, where the individual comes withinthe provisions of section 787TA, to such extent as may be neces-sary for the purpose of the exercise of an option by the individ-ual in accordance with that section requiring an amount rep-resenting the value of, or part of the value of, the individual’s20accrued rights under the contract at the date of the exercise ofthe option to be transferred to the individual by the person withwhom the contract is made.”.

(3) Chapter 2 of Part 30 of the Principal Act is amended insection 784A—25

(a) by deleting subsection (1BA),

(b) in subsection (1C) by substituting “section 790D(4)” for“subsection (1BA)(b)”,

(c) in subsection (1E) by substituting “subsection (1B)” for“subsections (1B) and (1BA)”,30

(d) in subsection (3) by substituting “Subject to subsections(3A) and (4)” for “Subject to subsection (4)”,

(e) by inserting the following after subsection (3):

“(3A) Subsection (3) shall not apply where the distri-bution referred to in that subsection is made for the pur-35pose of reimbursing, in whole or in part, an administrator(within the meaning of section 787O(1)) in respect of thepayment by that administrator of income tax charged on achargeable excess under the provisions of Chapter 2C ofthis Part in respect of the person beneficially entitled to40the assets in the fund.”,

and

(f) in subsection (4)(c) by substituting the following for all ofthe words from “the qualifying fund manager shall” tothe end of the provision:45

“the qualifying fund manager shall deductincome tax from the distribution under Case IVof Schedule D at a rate of 30 per cent, and—

(I) the amount so charged to tax—

39

(A) shall not be reckoned in computingtotal income for the purposes of theTax Acts, and

(B) shall be computed without regard toany amount deductible from, or 5deductible in computing, total incomefor the purposes of the Tax Acts,

(II) the charging of the distribution in suchmanner shall be without any relief orreduction specified in the Table to section 10458, or any other deduction from that dis-tribution, and

(III) section 188 shall not apply as regards theamount so charged.

(d) Where a qualifying fund manager deducts tax in 15accordance with paragraph (c), subsections (8)to (15) of section 790AA shall, with any neces-sary modifications, apply as if any reference inthose subsections—

(i) to the administrator were a reference to the 20qualifying fund manager,

(ii) to a relevant pension arrangement were areference to an approved retirementfund, and

(iii) to an excess lump sum were a reference to 25a distribution of a kind referred to in para-graph (c).”.

(4) Chapter 2A of Part 30 of the Principal Act is amended—

(a) in section 787G(3)(e) by substituting “section 787K(2A),”for “section 787K(2A).”, 30

(b) in section 787G(3) by inserting the following after para-graph (e):

“(f) an amount made available from the PRSA,where the PRSA is a vested PRSA (within themeaning of section 790D(1)), for the purpose 35of reimbursing, in whole or in part, an adminis-trator (within the meaning of section 787O(1))in respect of the payment by that administratorof income tax charged on a chargeable excessunder the provisions of Chapter 2C of this Part 40in respect of the PRSA contributor.”,

and

(c) in section 787K by inserting the following after subsec-tion (2A):

“(2B) A PRSA product (within the meaning of Part X 45of the Pensions Act 1990) shall neither cease to be anapproved product under section 94 of that Act nor shallthe Revenue Commissioners be prevented from approvinga product under that section notwithstanding that the

40

product permits the PRSA administrator, where the PRSAcontributor comes within the provisions of section 787TA,to make available from the PRSA assets to such extent asmay be necessary an amount for the purposes of an optionexercised by the PRSA contributor in accordance with that5section requiring an amount representing the value of, orpart of the value of, the PRSA contributor’s accrued rightsunder the product at the date of the exercise of the optionto be transferred to the PRSA contributor by the PRSAadministrator.”.10

(5) Chapter 2C of Part 30 of the Principal Act is amended insection 787Q—

(a) in subsection (6)(a) by deleting “or, where the individualis deceased, from his or her estate”,

(b) in subsection (6) by substituting the following for para-15graph (b):

“(b) the administrator shall be reimbursed by theindividual for the tax so paid in accordancewith subsection (7).”,

and20

(c) by inserting the following after subsection (6):

“(7) An administrator referred to in subsection (6) shallbe reimbursed for the payment of tax arising on a charge-able excess in the following manner—

(a) where the amount of tax paid is 50 per cent or25a lesser percentage of the amount of the lumpsum payable to the individual under the rulesof the relevant pension arrangement reducedby the amount of tax charged under subsection(3)(a)(i) or (3)(b)(i)(I) of section 790AA on an30excess lump sum (within the meaning of sub-section (1)(e) of that section), if any, in respectof that lump sum (in this subsection referredto as the ‘net lump sum’)—

(i) by appropriating that percentage of the net35lump sum,

(ii) by payment by the individual of an amountto the administrator that is equal to theamount of tax paid, or

(iii) by a combination of subparagraphs (i) and40(ii) such that the aggregate of the percent-age of the net lump sum appropriated andthe amount paid by the individual to theadministrator is equal to the amount oftax paid,45

(b) where the amount of tax paid is greater than 50per cent of the net lump sum—

(i) (I) by appropriating not less than 50 percent of the net lump sum, or such

41

higher percentage as the adminis-trator and the individual may agree,

(II) by payment by the individual of anamount to the administrator that isnot less than 50 per cent of the net 5lump sum, or such higher amount asthe administrator and the individualmay agree, or

(III) by a combination of clauses (I) and (II)such that the aggregate of the per- 10centage of the net lump sum appro-priated and the amount paid by theindividual to the administrator is notless than 50 per cent of the net lumpsum, 15

and

(ii) (I) by reducing the gross annual amountof pension payable to the individualunder the rules of the relevant pen-sion arrangement (in this subsection 20referred to as the ‘pensionreduction’), for a period agreedbetween the individual and theadministrator that does not exceed 10years from the date of first payment 25of the pension (in this subsectionreferred to as the ‘agreed period’),such that the pension reduction overthe agreed period is sufficient to reim-burse the administrator for that por- 30tion of the tax paid as was not reim-bursed under subparagraph (i), if any,(in this subsection referred to as the‘balance’),

(II) by payment by the individual of an 35amount equal to the balance to theadministrator within the period of 3months from the date of the benefitcrystallisation event that gave rise tothe chargeable excess, or 40

(III) by a combination of a pensionreduction over an agreed period asprovided for in clause (I) and pay-ment of an amount by the individualas provided for in clause (II) where 45the aggregate of the amount of thereduction in the pension over theagreed period and the amount pay-able by the individual equals thebalance, 50

(c) a payment by an individual to an administratorreferred to in subparagraphs (ii) and (iii) ofparagraph (a) and clauses (II) and (III) of sub-paragraph (b)(i) (in this paragraph referred toas the ‘first-mentioned payment’) shall be 55made before the administrator pays the

42

amount of the net lump sum or, as the casemay be, such amount of the net lump sum ashas not been appropriated to reimburse theadministrator for the payment of tax arising onthe chargeable excess and the administrator5may withhold payment of that amount untilsuch time as the first-mentioned payment ismade by the individual.”.

(6) Chapter 2C of Part 30 of the Principal Act is amended insection 787R—10


“(3A) The references in subsections (2) and (3) toincome tax charged under subsection (1) shall be deemedto be a reference to the amount of income tax so chargedreduced, as appropriate, under section 787RA.”,15

and

(b) in subsection (4) by deleting “and” at the end of paragraph(d) and substituting the following for paragraph (e):

“(e) where the administrator of the arrangement isan administrator of a kind referred to in para-20graph (d) of the definition of ‘administrator’ insection 787O(1) and where relevant, details ofthe amount of unpaid tax required to be paidby the administrator and remitted to the Col-lector-General under subsections (18) and (19)25of section 787TA, and

(f) such other information as the Revenue Commis-sioners may reasonably require for the pur-poses of this Chapter.”.

(7) Chapter 2C of Part 30 of the Principal Act is amended—30

(a) by inserting the following after section 787R:

“Credit for taxpaid on anexcess lumpsum.

787RA.—(1) Where, on or after 1January 2011, a benefit crystallisation eventthat gives rise to a chargeable excess inaccordance with section 787Q occurs in35relation to an individual in respect of a rel-evant pension arrangement, then, in so faras income tax has been charged under sub-section (3)(a)(i) or (3)(b)(i)(I) of section790AA on an excess lump sum (within the40meaning of subsection (1)(e) of thatsection) in respect of a lump sum paid, onor after that date, to the individual—

(a) by the administrator of thatrelevant pension arrangement45(in this section referred to asthe ‘first-mentioned admin-istrator’), whether under thatrelevant pension arrangement,or under any other relevant50

43

pension arrangement adminis-tered by the first-mentionedadministrator, or

(b) where the condition in subsec-tion (2) is met, by the adminis- 5trator of another relevant pen-sion arrangement,

the income tax on the chargeable excesscharged in accordance with section 787R(in this section referred to as the ‘charge- 10able excess tax’) shall be reduced by theaggregate of the amount of income taxcharged under subsection (3)(a)(i) or(3)(b)(i)(I) of section 790AA on the excesslump sum and deducted by the first-men- 15tioned administrator and the amount ofsuch income tax charged on the excesslump sum and deducted by the otheradministrator (in this section referred to asthe ‘lump sum tax’). 20

(2) The condition referred to in subsec-tion (1)(b) is that the first-mentionedadministrator obtains from the otheradministrator a certificate stating—

(a) the name and address of the 25administrator,

(b) the individual’s full name,address and PPS Number,

(c) the relevant pension arrange-ment in respect of which the 30benefit crystallisation event giv-ing rise to the excess lump sumarose,

(d) the date of payment of the lumpsum in respect of which tax on 35the excess lump sum wasdeducted under section 790AAand the amount of the lumpsum, and

(e) the amount of the lump sum tax 40in respect of the excess lumpsum charged to tax in accord-ance with subsection (3)(a)(i) or(3)(b)(i)(I) of section 790AAand deducted by, and remitted 45to the Collector-General by theadministrator in accordancewith subsection (8) of thatsection.

(3) Subject to subsection (4), where the 50lump sum tax referred to in subsection (1)is greater than the chargeable excess taxreferred to in that subsection, the amountby which the lump sum tax exceeds the

44

chargeable excess tax may be carried for-ward and aggregated with the lump sum taxon a lump sum (if any) paid to the individ-ual under the next benefit crystallisationevent that occurs in relation to that individ-5ual (in this section referred to as the ‘taxbalance’) and, so far as may be, used toreduce the amount of the chargeable excesstax arising on that benefit crystallisationevent (in this section referred to as the10‘future chargeable excess tax’) and so on inrespect of each successive benefit crystallis-ation event until the tax balance is fullyused.

(4) Where a future chargeable excess tax15referred to in subsection (3) is in respect ofa benefit crystallisation event under a rel-evant pension arrangement which is notadministered by the first-mentioned admin-istrator and the tax balance has not been20fully used, the administrator of that rel-evant pension arrangement shall obtainfrom the first-mentioned administrator acertificate stating—

(a) the name and address of the first-25mentioned administrator,

(b) the individual’s full name,address and PPS Number, and

(c) the amount of the unused taxbalance.30

(5) Where an administrator receives acertificate referred to in subsection (4), thefuture chargeable excess tax may bereduced by the aggregate of the amount ofthe unused tax balance referred to in that35certificate and the lump sum tax, if any,charged by that administrator in respect ofthe benefit crystallisation event giving riseto the future chargeable excess tax.

(6) Subsections (4) and (5) shall apply as40appropriate, and with any necessary modifi-cations, on each successive occasion onwhich a benefit crystallisation event occursin relation to the individual where theadministrator of that benefit crystallisation45event and the administrator of the immedi-ately preceding benefit crystallisation eventare not the same person.

(7) Subsection (6) of section 787R shall,with any necessary modifications, apply to50an administrator who obtains a certificateunder subsection (2) or (4) as if the refer-ence in that subsection (6) to a declaration,or declarations were a reference to a certifi-cate, or certificates, to which subsection (2)55or (4) applies.

45

(8) Any lump sum tax or tax balancereferred to in this section—

(a) shall be used only once to reducea chargeable excess tax, and

(b) shall be used for no other 5purpose.”,

and

(b) by inserting the following after section 787T:

“Encashmentoption.

787TA.—(1) In this section—

‘active member’, in relation to a public sec- 10tor scheme, means a member of the schemewho is in reckonable service within themeaning of section 2(1) of the PensionsAct 1990;

‘AMRF’ means an approved minimum 15retirement fund;

‘ARF’ means an approved retirement fund;

‘Personal Retirement Savings Account’ hasthe meaning assigned to it by section 787Aand the expression ‘PRSA’ shall be con- 20strued accordingly;

‘private sector scheme’ means a relevantpension arrangement of a kind described inparagraphs (a) to (d) of the definition of‘relevant pension arrangement’; 25

‘PRSA administrator’ has the meaningassigned to it by section 787A;

‘public sector scheme’ means a relevantpension arrangement of a kind described inparagraphs (e) and (f) of the definition of 30‘relevant pension arrangement’;

‘qualifying fund manager’ has the meaningassigned to it by section 784A;

‘relevant individual’ means an individualwho on 8 February 2012— 35

(a) (i) is a member of one or morethan one private sectorscheme or was such amember before that dateand one or more than one 40benefit crystallisation eventhas occurred in respect ofthe scheme or schemes inthe relevant period, and

(ii) is a member of one or more 45than one public sectorscheme,

46

or

(b) is a member of one or more thanone private sector scheme orbecomes such a member afterthat date and who subsequently5becomes a member of one ormore than one public sectorscheme,

and who continues as an active member ofhis or her public sector scheme until his or10her retirement date;

‘relevant manager’, in relation to a relevantindividual, means a qualifying fund man-ager of an ARF or an AMRF or, as the casemay be, a PRSA administrator of a PRSA,15the assets in which are beneficially ownedby that individual;

‘relevant period’ means the period startingon 7 December 2005 and ending on 7February 2012;20

‘retirement date’, in relation to a public sec-tor scheme, means the earlier of—

(a) the date on which a member ofthe scheme retires where thatdate is on or after the date on25which the member reaches theage of 60 years, and

(b) the date on which a member ofthe scheme retires on groundsof incapacity under the rules of30the scheme;

‘tax year’ means a year of assessment forincome tax purposes.

(2) Subject to subsection (11), thissection shall apply in relation to a relevant35individual where—

(a) no benefit crystallisation eventhas occurred in relation to therelevant individual in the rel-evant period,40

(b) the aggregate of the amounts tobe crystallised by benefit crys-tallisation events in relation tothe relevant individual underhis or her private sector scheme45or schemes and his or her publicsector scheme or schemeswould, but for this section,exceed the standard fund thres-hold or, as the case may be, the50relevant individual’s personalfund threshold (in this section

47

referred to as the ‘specifiedamount’), and

(c) the benefit crystallisation eventsin relation to the public sectorscheme or schemes of the rel- 5evant individual occur after theoccurrence of all other benefitcrystallisation events in relationto the private sector scheme orschemes of that individual. 10

(3) (a) Where the conditions set out insubsection (4) are met, an indi-vidual in relation to whom sub-section (2) may apply mayirrevocably instruct in writing 15the administrator of the privatesector scheme or schemes toexercise the option (in thissection referred to as the‘encashment option’) provided 20for in subsection (6).

(b) The encashment option may beexercised in respect of a rel-evant individual on oneoccasion only and on the same 25date in relation to each of theprivate sector schemes of theindividual in respect of which heor she has irrevocablyinstructed the administrator to 30exercise the option.

(c) Where an administrator referredto in paragraph (a) or subsec-tion (11)(a) or, as the case maybe, a relevant manager referred 35to in subsection (11)(a) (in thisparagraph referred to as the‘relevant administrator’)receives an irrevocable instruc-tion in writing from an individ- 40ual the relevant administratorshall keep and retain for aperiod of 6 years each suchinstruction and on being sorequired by notice given to the 45relevant administrator in writ-ing by an officer of the RevenueCommissioners make availablewithin the time specified in thenotice such instructions as may 50be required by the notice.

(4) The conditions are that the relevantindividual—

(a) notifies the Revenue Commis-sioners in writing of his or her 55intention to have the encash-ment option exercised at least 3

48

months before the date onwhich the first benefit crystallis-ation event in relation to thepublic sector scheme orschemes is to occur and pro-5vides the followinginformation—

(i) his or her full name, addressand PPS Number,

(ii) an estimate of the value of10the accrued rights inrespect of which theencashment option is to beexercised or, as the casemay be, the specified15amount,

(iii) particulars of the privatesector scheme or schemesin respect of which theencashment option is to be20exercised,

(iv) the name, address and tele-phone number of theadministrator of each suchscheme, and25

(v) such other information andparticulars as the RevenueCommissioners mayreasonably require for thepurposes of this section,30

and

(b) notifies the Revenue Commis-sioners in writing, within 7working days of the exercise ofthe encashment option, that the35option has been exercised andprovides a schedule, with thenotification, setting out theaggregate amount in respect ofwhich the option was exercised40and the amounts in respect ofeach of the private sectorschemes concerned.

(5) Subsections (3) and (4) of section787P shall, with any necessary modifi-45cations, apply to a notification under para-graph (a) or (b) of subsection (4) as theyapply to a notification under subsection (2)of that section.

(6) (a) The exercise of the encashment50option is the transfer by theadministrator of the private sec-tor scheme or schemes to therelevant individual—

49

(i) where the relevant individ-ual’s retirement date is thedate referred to in para-graph (b) of the definitionof ‘retirement date’, on that 5date, or

(ii) in any other case, on orbefore the relevant individ-ual’s retirement date butnot before the date on 10which the relevant individ-ual attains the age of 60years,

of the amount of the value of therelevant individual’s accrued 15rights under the private sectorscheme or schemes, includingrights, if any, which relate toadditional voluntary contri-butions under the scheme or 20schemes, equal to—

(i) where the condition referredto in paragraph (b) applies,the value of those rights,and 25

(ii) in any other case, the speci-fied amount.

(b) The condition needed is that theamount to be crystallised by thebenefit crystallisation events in 30relation to the relevant individ-ual under his or her public sec-tor scheme or schemes exceedsthe standard fund threshold, or,as the case may be, the relevant 35individual’s personal fundthreshold.

(c) (i) In this paragraph—

‘rules’ means anything con-tained in the rules of a 40scheme or the terms andconditions of any contract inrespect of a scheme;

‘tax-free lump sum’ meansthe lump sum of a kind that 45would under the rules havebeen payable tax-free to arelevant individual if section790AA had never beenenacted; 50

‘restricted tax-free lumpsum’ means an amountequivalent to the amount

50

determined by theformula—

A × (1 – B)C

where—5

A is the amount of the tax-freelump sum,

B is—

(I) the specified amount, or

(II) where the encashment10option is exercised inrespect of any otherprivate sector schemeor schemes of the rel-evant individual, an15amount equivalent tothe amount deter-mined by theformula—

D – E20

where—

D equals the specifiedamount, and

E equals the encashmentamount or, as the case25may be, the aggregateof the encashmentamounts arising fromthe exercise of theencashment option in30respect of the otherprivate sector schemeor schemes,

and

C is the amount equal to the35value of the relevant indi-vidual’s accrued rightsunder the scheme.

(ii) Notwithstanding anythingcontained in this Part or40anything contained in therules, where an encashmentoption is exercised inrespect of a scheme and—

(I) the encashment amount45is equal to the value ofthe relevant individ-ual’s accrued rights

51

under the scheme, thetax-free lump sumshall not be payable,or

(II) the encashment amount 5is less than the value ofthe relevant individ-ual’s accrued rightsunder the scheme, thetax-free lump sum 10shall be restricted tothe restricted tax-freelump sum.

(7) Where an encashment option is exer-cised in respect of a relevant individual, the 15whole of the encashment amount in respectof each of the private sector schemes of therelevant individual in respect of which theencashment option is exercised shall beregarded as income of the individual for the 20tax year in which the amount is paid andshall be chargeable to income tax underCase IV of Schedule D.

(8) Income tax chargeable in accordancewith subsection (7) shall be charged at the 25higher rate for the tax year in which thepayment is made (in this section referred toas the ‘encashment tax’) and the adminis-trator of each of the private sector schemesreferred to in subsection (7) shall deduct 30the income tax due from the encashmentamount and remit it to the Collector-General in accordance with subsection (10).

(9) Where an encashment amount isregarded as income of the individual under 35subsection (7) and charged to tax in accord-ance with subsection (8)—

(a) such income shall be computedwithout regard to any amountdeductible from, or deductible 40in computing, total income forthe purposes of the Tax Acts,

(b) the charging of that income totax in such manner shall bewithout any relief or reduction 45specified in the Table to section458, or any other deductionfrom that income, and

(c) section 188 shall not apply asregards the amount so charged. 50

(10) Where the administrator of aprivate sector scheme or, as the case maybe, a relevant manager referred to in sub-section (16) deducts encashment tax inaccordance with subsection (8) or, as the 55

52

case may be, subsection (16), subsections(1) to (8) of section 787S shall, with anynecessary modifications, apply as if any ref-erence in those subsections—

(a) to an administrator included a5reference to a relevantmanager,

(b) to a relevant pension arrange-ment were a reference to a rel-evant individual’s private sec-10tor scheme,

(c) to a benefit crystallisation eventwere a reference to an encash-ment option,

(d) to a chargeable excess were a ref-15erence to an encashmentamount, or as the case may be,a deemed encashment amount,and

(e) to tax were a reference to20encashment tax.

(11) (a) (i) Where the conditions set outin subsection (4), as modi-fied by subsection (12) (inthis section referred to as25the ‘modified conditions’),are met, an individual inrelation to whom the cir-cumstances described inparagraph (b) may apply,30may irrevocably instruct inwriting the administratoror, as the case may be, therelevant manager of theprivate sector scheme or35schemes to exercise theencashment option as if thebenefit crystallisation eventor events referred to insubparagraph (i) of para-40graph (b) had not occurred.

(ii) Where the encashmentoption is exercised inrespect of a private sectorscheme or schemes of a45kind referred to in subpara-graph (i) of paragraph (b),subsection (6)(a) shallapply as if the reference inthat subsection to an50administrator were a refer-ence to a relevant manager.

(b) The circumstances referred to inparagraph (a) are that in

53

relation to a relevantindividual—

(i) one or more than onebenefit crystallisation eventhas occurred within the rel- 5evant period in relation toone or more than oneprivate sector scheme ofthat relevant individual,and 10

(ii) the aggregate of—

(I) the amounts so crystal-lised, and

(II) the amounts to be crys-tallised in the future 15by benefit crystallis-ation events in relationto the relevantindividual—

(A) under his or her 20other private sec-tor scheme orschemes, if any,and

(B) under his or her 25public sectorscheme orschemes,

would, but for this section,exceed the standard fund 30threshold or, as the case maybe, the relevant individual’spersonal fund threshold(referred to in paragraph(a)(ii) of subsection (4), as 35modified by subsection (12),and in the construction of‘B’ in the formula in subsec-tion (15)(b) as the ‘otherspecified amount’), and 40

(iii) the benefit crystallisationevents in relation to thepublic sector scheme orschemes of the relevantindividual occur after the 45occurrence of all otherbenefit crystallisationevents in relation to theprivate sector scheme orschemes of that individual. 50

(12) The modified conditions are thatthe individual complies with subsection (4)

54

as if the following were substituted for sub-paragraphs (ii), (iii) and (iv) of paragraph(a) of that subsection:

‘(ii) an estimate of the valueof the accrued rights in5respect of which theencashment option is tobe exercised or, as thecase may be, the otherspecified amount,10

(iii) notwithstanding that oneor more than onebenefit crystallisationevent has occurred inrelation to one or more15than one private sectorscheme within the rel-evant period, part-iculars of the privatesector scheme or20schemes in respect ofwhich the encashmentoption is to be exer-cised, and

(iv) the name, address and25telephone number ofthe administrator or, asthe case may be, the rel-evant manager of eachsuch scheme,’.30

(13) Where an encashment option isexercised in respect of an individualreferred to in subsection (11)(a) being atthat time a relevant individual, then in sofar as the exercise of that option relates35to—

(a) one or more than one privatesector scheme of the individualin respect of which no benefitcrystallisation event has40occurred in the relevant period,subsections (7) to (10) shallapply, and

(b) one or more than one privatesector scheme of the individual45in respect of which one or morethan one benefit crystallisationevent has occurred in the rel-evant period, subsection (14) or(15), as the case may be, shall50apply.

(14) (a) Where an encashment optionrelates to a scheme referred toin subsection (13)(b), the valueof the individual’s accrued55rights under the scheme for the

55

purposes of the exercise of theoption shall be the amount crys-tallised by the benefit crystallis-ation events and where theencashment option has been 5exercised in respect of thewhole of the scheme the part ofthe encashment amount fromwhich encashment tax is to bededucted (in this section 10referred to as the ‘deemedencashment amount’) shall bethe amount referred to in para-graph (b).

(b) Where the benefit crystallisation 15event is—

(i) a lump sum paid under therules of the scheme (of akind that would, if section790AA had never been 20enacted, have been paidtax-free to the individualand in this section referredto as the ‘tax-free lumpsum paid’), the deemed 25encashment amount shallbe the amount of that tax-free lump sum paid,

(ii) the transfer of an amount toan ARF the assets in which 30are beneficially owned bythe relevant individual, thedeemed encashmentamount shall be the lesserof the amount transferred 35to the ARF at the time thebenefit crystallisation eventoccurred and the value ofthe assets in the ARF at thedate of the exercise of the 40encashment option,

(iii) the transfer of an amount toan AMRF the assets inwhich are beneficiallyowned by the relevant indi- 45vidual, the deemed encash-ment amount shall be thelesser of the amount trans-ferred to the AMRF at thetime the benefit crystallis- 50ation event occurred andthe value of the assets inthe AMRF at the date ofthe exercise of the encash-ment option, 55

(iv) the retention of the assets ofa PRSA in the PRSA (inthis section referred to as

56

the ‘vested PRSA’) ben-eficially owned by the rel-evant individual, thedeemed encashmentamount shall be the lesser5of the value of the assetsretained in the vestedPRSA at the time thebenefit crystallisation eventoccurred and the value of10the assets in the vestedPRSA at the date of theexercise of the encashmentoption, and

(v) in any other case, the15deemed encashmentamount shall be nil.

(c) The whole of the deemedencashment amount—

(i) shall be regarded as income20of the individual for the taxyear in which the encash-ment option is exercised,and

(ii) the amount so regarded as25income shall be chargeableto income tax in accord-ance with subsection (16)or, as the case may be, sub-section (19).30

(15) (a) Where an encashment optionrelates to a scheme referred toin subsection (13)(b) and thatoption is exercised in respect ofonly part of the scheme—35

(i) the encashment amountshall be an amount equiv-alent to B in the formula inparagraph (b), and

(ii) where the benefit crystallis-40ation event was in respectof any one or more of theevents described in subsec-tion (14)(b), the deemedencashment amount in45respect of each of thoseevents shall be an amountequivalent to the amountdetermined by thatformula.50

(b) The formula is—

A × B

C

57

where—

A is—

(i) the amount of the tax-free lump sum paid,

(ii) the lesser of the amount 5transferred to theARF at the time thebenefit crystallisationevent occurred and thevalue of the assets in 10the ARF at the date ofthe exercise of theencashment option (inthis paragraphreferred to as the 15‘encashment date’),

(iii) the lesser of the amounttransferred to theAMRF at the time thebenefit crystallisation 20event occurred and thevalue of the assets inthe AMRF at theencashment date, or

(iv) the lesser of the value 25of the assets retainedin the vested PRSA atthe time the benefitcrystallisation eventoccurred and the value 30of the assets in thevested PRSA at theencashment date,

B has the meaning assigned toit in the formula in the 35definition of ‘restricted tax-free lump sum’ in subsec-tion (6)(c)(i) as if in thatmeaning a reference tospecified amount were a 40reference to other speci-fied amount,

and

C is the amount crystallised bythe benefit crystallisation 45events under the scheme.

(c) Paragraph (c) of subsection (14)shall apply to the deemedencashment amounts referredto in paragraph (a). 50

(16) (a) Any deemed encashmentamount shall be charged to

58

income tax under Case IV ofSchedule D.

(b) The relevant manager shalldeduct income tax from thedeemed encashment amount at5the higher rate for the tax yearin which the encashment optionis exercised and remit it to theCollector-General in accord-ance with subsection (10).10

(c) Paragraphs (a) to (c) of subsec-tion (9) shall apply to a deemedencashment amount regarded asincome of the relevant individ-ual under subsection (14)(c) or15(15)(c) and charged to incometax in accordance with para-graph (a).

(d) (i) The deduction of income taxby a relevant manager in20accordance with paragraph(b) shall include adeduction for a deemedencashment amount inrespect of a tax-free lump25sum paid under the rules ofthe private sector schemefrom which the assets were,in whole or in part, trans-ferred to the ARF or the30AMRF or, as the case maybe, in the case of a schemethat is a PRSA, withinwhich the assets wereretained in whole or in35part.

(ii) (I) In so far as income taxhas been chargedunder subsection(3)(a)(i) or (3)(b)(i)(I)40of section 790AA onan excess lump sum(within the meaning ofsubsection (1)(e) ofthat section) (in this45paragraph referred toas the ‘standard rateincome tax’) in respectof a lump sum referredto in subparagraph (i)50and deducted by andremitted to the Collec-tor-General by theadministrator of theprivate sector scheme55in accordance withsubsection (8) of thatsection, the income taxto be deducted by the

59

relevant manager fromthe deemed encash-ment amount inrespect of the lumpsum shall, where the 5condition in subpara-graph (iii) is met, bereduced by the amountof the standard rateincome tax, and 10

(II) where a deemedencashment amount inrespect of a tax-freelump sum has beencalculated in accord- 15ance with the formulain subsection (15),then in so far as stan-dard rate income taxhas been charged in 20respect of the lumpsum, the income tax tobe deducted by the rel-evant manager fromthe deemed encash- 25ment amount shall,where the condition insubparagraph (iii) ismet, be reduced by anamount of income tax 30equivalent to theamount determined bythat formula if ‘A’ inthe formula was theamount of the stan- 35dard rate income tax.

(iii) The condition referred to inclauses (I) and (II) of sub-paragraph (i) is that the rel-evant manager obtains 40from the administrator ofthe private sector scheme acertificate giving the infor-mation set out in para-graphs (a) to (e) of subsec- 45tion (2) of section 787RA.

(iv) Where income tax on adeemed encashmentamount is reduced by anamount of standard rate 50income tax in accordancewith clause (I) or (II) ofsubparagraph (ii), thatamount of standard rateincome tax shall not be 55available for the purposesof section 787RA.

60

(v) Subsection (6) of section787R shall, with any neces-sary modifications, apply toa relevant manager whoobtains a certificate under5subparagraph (ii) as if thereference in that subsectionto a declaration, or declar-ations, were a reference toa certificate, or certificates,10to which subparagraph (ii)applies.

(17) The tax required to be deducted bythe relevant manager under subsection (16)shall be satisfied out of the funds in the15ARF, the AMRF or, as the case may be,the vested PRSA beneficially owned by therelevant individual and the individual shallallow such deduction and where there areno funds or insufficient funds available out20of which the relevant manager may satisfythe tax required to be deducted, theamount of such tax for which there areinsufficient funds available (in this sectionreferred to as the ‘unpaid tax’) shall be dis-25charged in accordance with subsection (18).

(18) (a) The unpaid tax referred to insubsection (17) shall be deemedto be tax on a chargeable excessin respect of the relevant indi-30vidual and shall be paid andremitted to the Collector-General by the administrator ofthe relevant individual’s publicsector scheme at the time of the35occurrence of the first benefitcrystallisation event in respectof the individual in relation tothat scheme and the amount sopaid shall be a debt due to the40administrator from the individ-ual, or where the individual isdeceased, from his or her estate.

(b) The administrator referred to inparagraph (a) shall be reim-45bursed by the relevant individ-ual for the payment of theunpaid tax that is deemed to betax on a chargeable excess inthe manner provided for in50paragraphs (a) and (b) ofsection 787Q(7).

(c) The deemed tax on a chargeableexcess referred to in paragraph(a) shall not be tax on a charge-55able excess for any other pur-pose of this Chapter.

61

(19) (a) Where an encashment option isexercised in relation to a privatesector scheme of a relevant indi-vidual in circumstances where atax-free lump sum was paid and 5the remainder of that individ-ual’s accrued rights under thescheme were applied by wayof—

(i) the purchase of an annuity 10for the individual, or

(ii) the payment of a pension tothe individual from thescheme, or

(iii) the transfer to the individual 15under the rules of thescheme of an amount onthe exercise of an option bythe individual undersection 772(3A)(a) or 20784(2A) and taxed inaccordance with section784(2B) (or, as the casemay be, taxed in accord-ance with that section by 25virtue of section 772(3B)),or an amount transferredto the individual at the timeassets of the PRSA are firstmade available from the 30PRSA and taxed in accord-ance with section 787G(1),

then income tax charged undersubsection (16)(a) on thedeemed encashment amount in 35relation to the tax-free lump sumshall be chargeable to tax at thehigher rate for the tax year inwhich the encashment option isexercised and the encashment 40tax so charged shall, subject toparagraph (c), be deemed to beunpaid tax for the purposes ofsubsection (18) and discharged inaccordance with that subsection 45as if the reference in paragraph(b) of that subsection to para-graphs (a) and (b) of section787Q(7) were a reference only toparagraph (b) of section 50787Q(7).

(b) Subparagraphs (ii) and (iv) ofparagraph (d) of subsection (16)shall, with any necessary modifi-cations, apply to encashment 55tax referred to in paragraph (a),where the relevant individualobtains from the administrator

62

of the private sector scheme acertificate giving the infor-mation set out in paragraphs (a)to (e) of subsection (2) ofsection 787RA.5

(c) Subsection (6) of section 787Rshall, with any necessary modifi-cations, apply to a relevant indi-vidual who obtains a certificateunder paragraph (b) as if the10reference in that subsection to adeclaration, or declarations,were a reference to a certificate,or certificates, to which para-graph (b) applies.15

(20) Where a benefit crystallisationevent has occurred in relation to a relevantindividual under a private sector scheme inrespect of which an encashment option isexercised and the benefit crystallisation20event has resulted in the individual beingthe beneficial owner of the assets in anARF, an AMRF or, as the case may be, avested PRSA (in this subsection referred toas the ‘fund’), then where the exercise of25the option was in respect of—

(a) the whole of the private sectorscheme, the value of the assetsin the fund, or

(b) a part of the private sector30scheme, the value of the assetsin the fund that are deemed tobe an encashment amount inaccordance with subsection(15),35

shall for the purposes of this Part no longerbe regarded as assets held in an ARF, anAMRF or, as the case may be, a vestedPRSA from the date of the exercise of theoption.40

(21) Where an encashment option isexercised in respect of a relevant individualthe encashment amount or, as the case maybe, the deemed encashment amount shallnot be—45

(a) a benefit crystallisation event forthe purposes of this Chapterand Schedule 23B and wherethat amount relates to a privatesector scheme in respect of50which one or more than onebenefit crystallisation event hasoccurred before the exercise ofthe option such benefit crystal-lisation events or, as the case55may be, the portion of such

63

benefit crystallisation eventsrepresented by the amount of‘B’ in the formula in subsection(15)(b), shall be disregarded forthe purposes of this Chapter 5and Schedule 23B,

(b) used by the relevant individual asa contribution to, or the pay-ment of a premium under, a rel-evant pension arrangement, and 10

(c) regarded under the provisions ofChapter 2 or 2A as a distri-bution from an ARF or anAMRF or, as the case may be,as the making available to, or 15paying to, a PRSA contributorof assets of that amount orvalue from a PRSA.

(22) Where an encashment option isexercised in respect of a relevant individual 20in relation to a private sector scheme inrespect of which one or more than onebenefit crystallisation event has occurred inthe relevant period and the deemed encash-ment amount is the amount of the tax-free 25lump sum paid or, as the case may be, apart of the tax-free lump sum paid, thatamount, or that part, shall be disregardedin determining an excess lump sum (withinthe meaning of subsection (1)(e) of section 30790AA) in respect of a lump sum (withinthe meaning of that section) that is paid tothat individual on or after 8 February 2012.

(23) (a) The persons liable for income taxcharged in accordance with sub- 35section (8) or (16) shall be therelevant individual and theadministrator of the private sec-tor scheme, the relevant man-ager referred to in subsection 40(16) or, as the case may be, theadministrator of the public sec-tor scheme referred to in sub-section (18) and their liabilityshall be joint and several. 45

(b) A person liable for income taxcharged in accordance with sub-section (8) or (16) shall be soliable whether or not that per-son or any other person who is 50liable for the charge is residentor ordinarily resident in theState.”.

(8) Chapter 4 of Part 30 of the Principal Act is amended byinserting the following after section 790C: 55

64

“Imputeddistributionfrom certainfunds.

790D.—(1) In this section—

‘additional voluntary PRSA contributions’ has themeaning assigned to it by section 787A(1);

‘approved minimum retirement fund’ has themeaning assigned to it by section 784C and for the5purposes of this section the expression ‘AMRF’shall be construed accordingly;

‘approved retirement fund’ has the meaningassigned to it by section 784A and for the purposesof this section the expression ‘ARF’ shall be con-10strued accordingly;

‘contributor’ has the meaning assigned to it bysection 787A;

‘excluded distributions’ means one or more ofthe following:15

(a) a specified amount regarded as a distri-bution or the making available ofPRSA assets under subsection (4);

(b) a payment, transfer or assignment of theassets of an ARF to another ARF the20beneficial owner of the assets in whichis the individual who is beneficiallyentitled to the assets in the first-men-tioned ARF, whether or not the pay-ment, transfer or assignment is made25to the individual;

(c) a transaction regarded as a distributionfor the purposes of section 784A byvirtue of subsection (1A) of thatsection;30

(d) a transfer referred to in section784C(5)(a);

(e) assets made available from a PRSA,being assets of a kind referred to insection 787G(3);35

(f) the circumstances set out in section787G(4A) in which a PRSA adminis-trator is treated as making assets of aPRSA available to an individual;

(g) a distribution made for the purpose set40out in section 784A(3A);

‘other manager’, in relation to an individual whohas a relevant fund, means a person, other thanthe nominee, that is—

(a) a qualifying fund manager,45

(b) a PRSA administrator, or

65

(c) both a qualifying fund manager and aPRSA administrator,

and which manages or administers, as the casemay be, on the specified date—

(i) one or more than one ARF, 5

(ii) one or more than one vested PRSA, or

(iii) one or more than one ARF and one ormore than one vested PRSA,

the assets in which are beneficially owned by theindividual; 10

‘Personal Retirement Savings Account’ has themeaning assigned to it by section 787A and forthe purposes of this section the expression ‘PRSA’shall be construed accordingly;

‘PRSA administrator’ has the meaning assigned to 15it by section 787A;

‘qualifying fund manager’ has the meaningassigned to it by section 784A;

‘relevant distributions’, in relation to an individ-ual, means the aggregate of the amount or value 20of—

(a) the distributions, if any, made duringthe tax year by a qualifying fund man-ager in respect of assets held in—

(i) an ARF, or, as the case may be, 25ARFs the assets of which are ben-eficially owned by the individualand managed by that qualifyingfund manager, and

(ii) an AMRF, if any, the assets of 30which are beneficially owned bythe individual and managed bythat qualifying fund manager, (inthis paragraph referred to as the‘funds’) being funds the assets in 35which were first accepted into thefunds by the qualifying fund man-ager on or after 6 April 2000,

and

(b) the assets, if any, that a PRSA adminis- 40trator makes available to, or pays to,the individual or to any other personduring the tax year from one or morethan one vested PRSA that is ben-eficially owned by that individual and 45administered by that PRSA admin-istrator,

66

less the aggregate of the amount or value of anyexcluded distributions made during the tax year inrespect of assets which are beneficially owned bythe individual;

‘relevant fund’ means all of the—5

(a) ARFs, and

(b) vested PRSAs,

beneficially owned by the same individual on thespecified date other than ARFs the assets in whichwere first accepted into the funds by the qualifying10fund manager before 6 April 2000;

‘specified amount’, for a tax year, means anamount equivalent to the amount determined bythe formula—

(A × B)– C

15100

where the amount so determined is greater thanzero and where—

A is the value (in this section referred to as the‘relevant value’) of the assets in a relevant20fund on the specified date, excluding, whereappropriate, the value of assets retained bythe PRSA administrator as would be requiredto be transferred to an AMRF if thebeneficial owner of the PRSA had opted in25accordance with section 787H(1),

B is—

(i) 5, where the relevant value is notgreater than €2,000,000, or

(ii) 6, where the relevant value is greater30than €2,000,000,

and

C is the amount or value of relevant distributions,if any, made in the tax year;

‘specified date’ means 30 November in the tax35year;

‘tax year’ means a year of assessment for incometax purposes;

‘vested PRSA’ means—

(a) a PRSA in respect of which assets of the40PRSA have been made available to, orpaid to, the PRSA contributor or toany other person, by the PRSA admin-istrator on or after 7 November 2002,other than assets of a kind referred to45in paragraphs (b), (c) and (d) of

67

section 787G(3), and for the purposesof this definition the provisions of sub-sections (4) and (4A) of section 787Gshall apply, and

(b) in the case of a PRSA that is a PRSA 5to which an individual is or was thecontributor of additional voluntaryPRSA contributions, such a PRSAwhere benefits become payable to theindividual under the main scheme on 10or after 7 November 2002.

(2) For the purposes of this section, referencesto the value of an asset in a relevant fund shall,except where the asset is cash, be construed as areference to the market value of the asset within 15the meaning of section 548.

(3) This section applies for any tax year inwhich an individual—

(a) has a relevant fund, and

(b) is aged 60 years or over for the whole 20of that tax year.

(4) Subject to the other provisions of thissection, the specified amount shall for the pur-poses of subsections (3) and (7)(b) of section 784Aor, as the case may be, subsections (1) and (2) of 25section 787G be regarded as—

(a) where the relevant fund comprises oneor more than one ARF, a distributionof that amount from an ARF,

(b) where the relevant fund comprises one 30or more than one vested PRSA, themaking available to, or paying to, thePRSA contributor of assets of thatamount or value from a PRSA,

(c) where the relevant fund comprises one 35or more than one ARF and one ormore than one vested PRSA and—

(i) the qualifying fund manager andthe PRSA administrator of eachARF and of each PRSA con- 40cerned are the same person, a dis-tribution of that amount from anARF,

(ii) the nominee appointed in accord-ance with subsection (5) is a quali- 45fying fund manager, a distributionof that amount from an ARF,

(iii) the nominee appointed in accord-ance with subsection (5) is aPRSA administrator, the making 50available to, or paying to, the

68

PRSA contributor of assets of thatamount or value from a PRSA, or

(iv) the nominee appointed in accord-ance with subsection (5) is both aqualifying fund manager and a5PRSA administrator, a distri-bution of that amount from anARF,

not later than the second month of the tax yearfollowing the tax year in respect of which the10specified amount is determined.

(5) Where—

(a) an individual has a relevant fund and—

(i) the relevant value is €2,000,000 orless,15

(ii) the relevant fund comprises—

(I) more than one ARF, or

(II) more than one vested PRSA,or

(III) one or more than one ARF20and one or more than onevested PRSA,

and

(iii) in relation to each such relevantfund the qualifying fund manager25of each ARF concerned and thePRSA administrator of eachvested PRSA concerned are notthe same person,

or30

(b) where an individual has a relevant fundand the relevant value is greater than€2,000,000 and subparagraphs (ii) and(iii) of subsection (a) apply,

then the individual referred to in paragraph (a)35may, and the individual referred to in paragraph(b) shall, appoint one of those persons (in thissection referred to as the ‘nominee’) for the pur-poses of this section.

(6) Where an individual appoints a nominee in40accordance with subsection (5) the individualshall—

(i) inform the other manager or the othermanagers, as the case may be, of suchappointment for the purposes of this45section,

69

(ii) where the appointment under subsec-tion (5) is compulsory, advise the othermanager or the other managers, as thecase may be, of that fact, and

(iii) provide the other manager or the other 5managers, as the case may be, with thefull name, address and telephonenumber of the nominee.

(7) Where an individual appoints a nominee inaccordance with subsection (5)— 10

(a) the other manager or the other man-agers, as the case may be, shall within14 days of the specified date providethe nominee with a certificate for thattax year stating the aggregate value 15(subject to paragraph (b)) of the assetson that date in, and the relevant distri-butions from—

(i) the ARF or ARFs, or

(ii) the vested PRSA or vested 20PRSAs, or

(iii) the ARF or ARFs and the vestedPRSA or vested PRSAs,

managed or administered by the othermanager or the other managers, 25

(b) the aggregate value of the assetsreferred to in paragraph (a) shall,where the assets are in one or morethan one vested PRSA, exclude thevalue of such assets, if any, retained by 30the PRSA administrator as would berequired to be transferred to anAMRF if the beneficial owner of thePRSA had opted in accordance withsection 787H(1), and 35

(c) the nominee shall keep and retain fora period of 6 years each certificate soprovided and on being so required bynotice given to the nominee in writingby an officer of the Revenue Commis- 40sioners, make available within the timespecified in the notice such certificatesas may be required by the notice.

(8) Where an individual appoints a nominee inaccordance with subsection (5) and the nominee 45receives a certificate or, as the case may be, certifi-cates provided in accordance with subsection(7)(a), from the other manager or from one ormore of the other managers, the specified amountshall be determined by the nominee as if the value 50of the assets and the relevant distributions statedin each certificate so received were the value ofassets in and relevant distributions from an ARF

70

or a vested PRSA managed or administered by thenominee in that tax year.

(9) Where an individual appoints a nominee inaccordance with subsection (5) in respect of a rel-evant fund of a kind referred to in paragraph (a)5of that subsection and—

(a) the nominee does not receive a certifi-cate referred to in subsection (7)(a)from the other manager, or

(b) the nominee does not receive a certifi-10cate referred to in subsection (7)(a)—

(i) from any of the other managers, or

(ii) from any one or more of the othermanagers, but not all of them,

then—15

(I) where paragraph (a) or (b)(i)applies, the nominee and theother manager or, as the case maybe, the nominee and each of theother managers, and20

(II) where paragraph (b)(ii) applies,each of the other managers inrespect of which the nominee hasnot received a certificate,

(in this subsection referred to as the ‘relevant25manager’) shall determine the specified amount inaccordance with this section as if the relevant fundof the individual was comprised solely, as the casemay be, of—

(A) the ARF or ARFs,30

(B) the vested PRSA or vested PRSAs, or

(C) the ARF or ARFs and the vested PRSAor vested PRSAs,

managed or administered by the relevantmanager.35

(10) Where an individual appoints a nomineein accordance with subsection (5) in respect of arelevant fund of a kind referred to in paragraph(b) of that subsection and paragraph (a) or (b) ofsubsection (9) applies, the specified amount shall40be determined in accordance with subsection (9)as if B in the formula for the specified amountwas 6.

(11) Where an individual has a relevant fundof a kind referred to in subsection (5)(a) and the45individual opts not to appoint a nominee as pro-vided for in that subsection, then each person whoon the specified date is—

71

Amendment ofsection 176(purchase ofunquoted shares byissuing company orits subsidiary) ofPrincipal Act.

(a) a qualifying fund manager,

(b) a PRSA administrator, or

(c) both a qualifying fund manager and aPRSA administrator,

of one or more than one ARF, one or more than 5one vested PRSA or, as the case may be, one ormore than one ARF and one or more than onevested PRSA comprised in that relevant fund shalldetermine the specified amount in accordancewith this section as if the relevant fund was com- 10prised solely, as the case may be, of—

(i) the ARF or ARFs,

(ii) the vested PRSA or vested PRSAs, or

(iii) the ARF or ARFs and the vested PRSAor vested PRSAs, 15

managed or administered by each such person.”.

(9) (a) Subsection (1) other than paragraph (d) shall be taken tohave effect from 6 February 2011.

(b) Paragraphs (a) to (c) of subsection (3) have effect from 1January 2012. 20

(c) Paragraph (d) of subsection (1), subsection (2), paragraphs(d) and (e) of subsection (3), subsections (4) to (6) andparagraph (b) of subsection (7) have effect from 8February 2012.

(d) Paragraph (f) of subsection (3) has effect from the date of 25passing of this Act.

(e) Paragraph (a) of subsection (7) has effect from 1 January2011.

(f) Subsection (8) has effect for the year of assessment 2012and subsequent years of assessment. 30

Chapter 4

Income Tax, Corporation Tax and Capital Gains Tax

19.—(1) Section 176 of the Principal Act is amended in subsection(1)(b)(i) by substituting the following for clause (I):

“(I) on or before 31 October in the year in which 35inheritance tax is due to be paid in accord-ance with section 46(2A) of the CapitalAcquisitions Tax Consolidation Act 2003 inrespect of a taxable inheritance (within themeaning of section 11 of that Act) of the 40company’s shares taken by that person, aliability to inheritance tax in respect of thatinheritance, or”.

(2) This section applies as on and from 8 February 2012.

72

20.—The Principal Act is amended—

(a) by inserting the following after section 664:

“Relief forincrease incarbon tax onfarm diesel.

664A.—(1) In this section—

‘accounting period’, in relation to a per-son, means—5

(a) where the person is a company,an accounting period deter-mined in accordance withsection 27, or

(b) where the person is not a com-10pany, a period of one year end-ing on the date to which theaccounts of the person are usu-ally made up,

but, where accounts have not been made up15or where accounts have been made up fora greater or lesser period than one year, theaccounting period shall be such period notexceeding one year as the Revenue Com-missioners may determine;20

‘carbon tax’ means the carbon chargereferred to in section 96(1A) (inserted bysection 64(1)(f) of the Finance Act 2010) ofthe Finance Act 1999;

‘farm diesel’ means the mineral oil25described as ‘other heavy oil’ in Schedule2A to the Finance Act 1999 used by a per-son in the carrying on of a trade of farming,but does not include such oil used for thepurpose of home heating;30

‘relevant carbon tax’ means an amountequivalent to the amount determined bythe formula—

A – B

where—35

A is the amount of the carbon taxincluded in a deduction inrespect of farm diesel in thecomputation by a person of theamount of the profits or gains of40that person to be charged to taxunder Case I of Schedule D,and

B is the amount of the carbon taxthat would have been included45in that deduction if the amount

73

Farm taxation.

of the carbon tax had been cal-culated at the rate of €41.30 per1,000 litres of farm diesel.

(2) Where—

(a) a person carries on in an account- 5ing period a trade of farming inrespect of which the person iswithin the charge to tax underCase I of Schedule D, and

(b) in the computation of the 10amount of the profits or gainsof that trade the person is, apartfrom this section, entitled to anydeduction on account of farmdiesel, 15

then such person shall be entitled in thatcomputation to a further deduction forfarm diesel of an amount equal to the rel-evant carbon tax.”,

(b) in paragraph 1(k) of the Table to section 667B by substi- 20tuting “Horsemanship;” for “Horsemanship.”,

(c) in paragraph 1 of the Table to section 667B by insertingthe following after subparagraph (k):

“(l) Level 6 Specific Purpose Certificate in FarmAdministration.”, 25

and

(d) by inserting the following after section 667B:

“Specialprovisions forregistered farmpartnerships.

667C.—(1) In this section—

‘qualifying farmer’ has the meaningassigned to it by section 667B; 30

‘registered farm partnership’ means a milkproduction partnership within the meaningof the European Communities (MilkQuota) Regulations 2008 (S.I. No. 227 of2008). 35

(2) Subject to subsection (3), where aperson is a partner in a registered farmpartnership, section 666 shall apply as if inthat section—

(a) in subsection (1) ‘50 per cent’ 40were substituted for ‘25 percent’, and

(b) the following was substituted forsubsection (4)—

‘(4) (a) A deduction shall not be 45allowed under thissection in computing a

74

company’s tradingincome for any account-ing period which endsafter 31 December2015.5

(b) Any deduction allowedby virtue of this sectionin computing the profitsor gains of a trade offarming for an account-10ing period of a personother than a companyshall not apply for anypurpose of the IncomeTax Acts for any year of15assessment later thanthe year 2015.’.

(3) Where a person referred to in sub-section (2) is a qualifying farmer, section667B shall apply for the purposes of this20section as if in subsection (5)(a) of thatsection ‘50 per cent’ were substituted for‘25 per cent’.

(4) This section shall not apply for anyaccounting period which ends before 125January 2012 or ends after 31 December2015.

(5) This section comes into operation onsuch day as the Minister for Finance mayappoint by order.”.30

21.—Schedule 13 to the Principal Act is amended—

(a) by deleting paragraphs 136, 143, 153 and 170,

(b) by substituting the following for paragraph 177:

“177. Irish Bank Resolution Corporation Limited.”,

(c) by substituting the following for paragraph 178:35

“178. Central Bank of Ireland.”,

and

(d) by inserting the following after paragraph 187:

“188. Health and Social Care Professional Council.”.

22.—(1) Chapter 2 of Part 18 of the Principal Act is amended—40

(a) in section 530(1) by substituting the following for para-graph (c) in the definition of “construction operations”:

“(c) the installation, alteration or repair in any build-ing or structure of systems of heating, lighting,air-conditioning, soundproofing, ventilation,45

75

Amendment ofSchedule 13(accountablepersons forpurposes of Chapter1 of Part 18) toPrincipal Act.

Relevant contractstax.

power supply, drainage, sanitation, water sup-ply, or burglar or fire protection,”,

(b) in section 530(1) by substituting the following for para-graph (ca) in the definition of “construction operations”:

“(ca) the installation, alteration or repair in or on any 5building or structure of systems of telecom-munications,”,

(c) in section 530(1) by substituting the following for thedefinition of “deduction summary”:

“ ‘deduction summary’, in relation to a return period, 10means a statement (adjusted as appropriate in accordancewith regulations made under this Chapter) which theRevenue Commissioners cause to be issued to a registeredprincipal setting out, in summary form—

(a) details in respect of each relevant payment noti- 15fied by that principal under section 530C whichis, in accordance with regulations made underthis Chapter, the subject of a valid deductionauthorisation at the time of issue of thededuction summary, and 20

(b) the aggregate amount of tax that is, based on thedetails referred to in paragraph (a), payable bythe principal in respect of the return period,

and includes a statement to the effect that no such relevantpayments were notified, where that is the case;”, 25

(d) in section 530(1) in the definition of “relevant contract”,by substituting “including persons in partnership” for “in-cluding a partnership in respect of which the principal hasnot received a relevant payments card”,

(e) in section 530(1) by inserting the following after the defini- 30tion of “subcontractor”:

“ ‘technology systems failure’ means circumstances inwhich the electronic system put in place by the RevenueCommissioners for the efficient operation of this Chapteris not functioning or is not functioning properly at any 35particular time such that a person is unable to comply withan obligation under this Chapter or regulations madeunder this Chapter, or circumstances where a person con-cerned is unable to use the electronic system at any part-icular time because of a general or partial systems failure 40of an internet service provider or of an electricity serviceprovider, occurring in the general locality of the person’splace of business;”,

(f) in section 530A(1) by deleting “or” where it last occurs inparagraph (f), by substituting “undertaking, or” for “und- 45ertaking.” in paragraph (g) and by inserting the followingafter paragraph (g):

“(h) a person who carries out the installation, alter-ation or repair in or on any building or struc-ture of systems of telecommunications.”, 50

76

(g) in section 530B(1) by substituting the following for para-graph (a):

“(a) information in relation to—

(i) the identity of the subcontractor, includingname and tax reference number,5

(ii) the estimated contract value,

(iii) the estimated contract duration, includingthe estimated start date and estimated enddate of the contract,

(iv) the location or locations at which relevant10operations under the contract are to takeplace, and

(v) whether or not a contract is a labour onlycontract,”,

(h) in section 530B by inserting the following after subsec-15tion (1):

“(1A) (a) Before providing the information and declar-ation referred to in subsection (1), a principalshall be satisfied as to the identity of the sub-contractor concerned.20

(b) For the purposes of paragraph (a), a principalshall require documentary evidence of identityfrom the subcontractor and shall make andretain a copy of the documentary evidence pro-vided, or record and retain relevant details25from the documentary evidence given.”,

(i) in section 530B by substituting the following for subsec-tion (4):

“(4) The Revenue Commissioners shall make regu-lations for the purposes of this section and such regu-30lations may—

(a) specify the manner by which principals shallcommunicate electronically with the RevenueCommissioners,

(b) in the case of a labour only contract, provide35for the submission of additional information inrelation to the contract,

(c) provide for the issuing of an acknowledgementby the Revenue Commissioners to a principalfollowing notification by the principal of a con-40tract under subsection (1) and for the mannerby which such acknowledgement may issue,

(d) provide for notification to a subcontractor bythe Revenue Commissioners of details of acontract, including changes to the terms of a45contract, in respect of which a principal hasnotified the Revenue Commissioners undersubsection (1) that the subcontractor is a party

77

and for the manner by which such notificationmay issue,

(e) provide for notification to the Revenue Com-missioners by a principal of changes to theterms of a contract which has been notified 5under subsection (1),

(f) provide for a principal to notify a subcontractorwhere the Revenue Commissioners are unableto verify the identity of the subcontractor byreference to the name and tax reference 10number supplied to the Revenue Commis-sioners by the principal under subsection (1),and

(g) provide for any other related matters.”,

(j) in section 530C by substituting the following for subsec- 15tion (3):

“(3) The Revenue Commissioners shall make regu-lations for the purposes of this section and such regu-lations may—

(a) specify the manner by which principals shall 20communicate electronically with the RevenueCommissioners,

(b) provide for the details to be supplied by a prin-cipal in relation to a payment referred to insubsection (1), 25

(c) specify the circumstances in which and themeans by which a principal may cancel a notifi-cation given under subsection (1),

(d) specify the circumstances in which notificationunder this section is deemed not to have been 30given,

(e) provide for notification to a subcontractorwhere a payment notification is cancelled, and

(f) provide for any other related matters.”,

(k) in section 530D by substituting the following for subsec- 35tion (5):

“(5) The Revenue Commissioners shall make regu-lations for the purposes of this section and such regu-lations may—

(a) specify the manner by which the Revenue Com- 40missioners shall communicate electronicallywith a principal,

(b) provide for the circumstances in which adeduction authorisation shall be valid and forthe period of validity of a deduction auth- 45orisation,

78

(c) specify the details to be contained in adeduction summary,

(d) specify the obligations on a principal to ensurethat a deduction summary accurately reflectsthe details of all relevant payments made, and5tax deducted, by a principal in a returnperiod, and

(e) provide for any other related matters.”,

(l) in section 530E(1) by substituting the following for para-graph (c):10

“(c) shall be 35 per cent where the Revenue Com-missioners have made a determination that thesubcontractor is a person to whom neithersection 530G nor section 530H apply, and

(d) shall, in the case of a partnership, be the highest15rate that would apply to any of the individualpartners following a determination by theRevenue Commissioners under section 530I.”,

(m) in section 530F(2) by substituting the following for para-graph (b):20

“(b) without prejudice to any other penalty to whichthe principal may be liable and without preju-dice to section 1078, be liable to a penalty of€5,000 or the amount of the tax payable underparagraph (a), whichever is the lesser.”,25

(n) in section 530F(3) by substituting the following for para-graph (a):

“(a) Where subsection (2)(a) applies and the princi-pal submits the details of the relevant paymentin a return for the relevant return period by30the due date for the return and, if appropriate,provides the Revenue Commissioners withsuch details, in relation to the relevant contractin respect of which the relevant payment wasmade, as may be required by the Revenue35Commissioners, the Revenue Commissionersshall establish the amount of tax that wouldhave been due from the principal in respect ofthat payment had the rate of tax been the rateof tax last notified by the Revenue Commis-40sioners to the subcontractor concerned undersection 530I and, notwithstanding the pro-visions of subsection (2)(a), the tax due fromthe principal in respect of that payment by vir-tue of that subsection shall be the amount so45established.”,

(o) in section 530F(3) by inserting the following after para-graph (b):

“(c) The amount of the penalty under subsection(2)(b) shall be calculated without reference to50any adjustment of the tax due as a result of theapplication of paragraph (a).”,

79

(p) in section 530F by substituting the following for subsec-tion (4):

“(4) Where, in making a relevant payment to a subcon-tractor, a principal deducts tax from the payment, the prin-cipal shall— 5

(a) provide the subcontractor with a copy of thededuction authorisation related to that pay-ment, or

(b) arrange for the following details from thededuction authorisation to be given to the sub- 10contractor by written or electronic means:

(i) the name and tax reference number of theprincipal,

(ii) the name and tax reference number of thesubcontractor, 15

(iii) the gross amount of the payment, includingthe amount of tax deducted,

(iv) the amount of tax deducted,

(v) the rate at which tax was deducted,

(vi) the date of the payment, and 20

(vii) the unique reference number issued by theRevenue Commissioners on thededuction authorisation.”,

(q) in section 530F by inserting the following after subsection(6): 25

“(7) Where, due to a persistent technology systems fail-ure, a principal is unable to give notification to theRevenue Commissioners under section 530C(1) and hasno option but to make a relevant payment without com-plying with that provision, subsection (2) shall not apply 30to that payment if the principal—

(a) deducts tax from that payment at the rate lastnotified to the principal in respect of the sub-contractor concerned, or if there was no suchnotification, deducts tax at a rate of 35 per cent 35from that payment,

(b) immediately upon rectification of the tech-nology systems failure notifies the RevenueCommissioners, in accordance with this Chap-ter or regulations made under this Chapter, 40that the payment has been made,

(c) provides all details in relation to the paymentthat the Revenue Commissioners mayrequire, and

(d) pays the tax deducted in accordance with para- 45graph (a) to the Revenue Commissioners on orbefore the due date for the making of a return

80

for the period within which the principal noti-fies the Revenue Commissioners under para-graph (b).

(8) Where a principal complies with the requirementsof subsection (7)—5

(a) the principal shall be deemed to have deductedtax from a relevant payment in accordancewith the terms of a valid deduction authoris-ation, and

(b) for the purposes of section 530K, the payment10shall be deemed to have been made in thereturn period in which the principal notifies theRevenue Commissioners under subsection(7)(b).

(9) A principal shall, on request, provide the Revenue15Commissioners with information in relation to the circum-stances and details of a persistent technology systems fail-ure under subsection (7).”,

(r) in section 530G(2) by substituting the following for para-graph (a):20

“(a) engaged in the business of carrying out relevantcontracts in partnership unless the partnershipbusiness itself has complied with the obli-gations referred to in subsection (1) and theRevenue Commissioners are satisfied that it25will continue to comply with thoseobligations,”,

(s) in section 530H(3) by substituting the following for para-graph (a):

“(a) a person engaged in the business of carrying out30relevant contracts in partnership unless thepartnership business itself has complied withthe obligations referred to in subsection (1)and the Revenue Commissioners are satisfiedthat it will continue to comply with those obli-35gations, or”,

(t) in section 530H by inserting the following after subsec-tion (3):

“(4) This section also applies to a person who satisfiesthe Revenue Commissioners that, in all the circumstances,40the matter or matters referred to in subsection (1), (2) or(3), which would otherwise cause such person not to be aperson to whom this section applies, ought to be dis-regarded for the purposes of this section.”,

(u) in section 530I by substituting the following for subsec-45tion (2):

“(2) Following a determination under subsection (1),the Revenue Commissioners shall notify the subcontractorof the determination and the rate of tax resulting fromsuch determination.”,50

81

(v) in section 530I by inserting the following after subsection(3):

“(4) The Revenue Commissioners shall not be obligedto make a determination under subsection (1)—

(a) until after a period of 30 days has elapsed fol- 5lowing the previous determination made by theRevenue Commissioners in respect of a sub-contractor,

(b) if an appeal by a subcontractor is awaiting deter-mination under subsection (3), or 10

(c) until a period of 30 days has elapsed followingdetermination of an appeal under subsection(3).”,

(w) in section 530J by substituting the following for subsec-tion (3): 15

“(3) The Revenue Commissioners shall make regu-lations for the purposes of this section and such regulationsmay provide for—

(a) keeping and maintaining the register,

(b) registration and time for registration, 20

(c) the particulars to be submitted to the RevenueCommissioners for the purposes of registeringa person as a principal,

(d) notification of change in relevant details,

(e) notification of cessation as a principal, 25

(f) cancellation of registration,

(g) the use of electronic means in connection withthe registration process, and

(h) any other related matters.”,

(x) in section 530K by substituting the following for subsec- 30tion (2):

“(2) (a) For the purposes of subsection (1), where theRevenue Commissioners issue, under section530D(3), a deduction summary to a principalfor a return period, the details on that sum- 35mary shall, for the purposes of the Tax Acts,be deemed to be a return made by the principalto the Collector-General in respect of thereturn period and the amount of tax specifiedon that summary shall be deemed to be the 40amount specified by the principal of his or hertax liability under this Chapter in respect ofthat return period.

(b) Paragraph (a) does not apply where a principalis required to amend the details on a deduction 45summary in accordance with regulations made

82

under this section and to submit a return undersubsection (1) in accordance with thoseamended details, and so submits the requiredreturn.”,

(y) in section 530K by substituting the following for subsec-5tion (5):


(a) the manner by which principals shall communi-10cate electronically with the Revenue Com-missioners,

(b) the particulars to be included in the returnrequired under this section,

(c) the obligations on, and the actions to be taken15by, a principal to ensure that any relevant pay-ment made by a principal relating to a returnperiod and the tax liability related to that pay-ment are accurately reflected on the returnrequired under this section,20

(d) notification to a subcontractor in relation toactions taken by a principal as referred to inparagraph (c), and

(e) any other related matters.”,

(z) in section 530M by substituting the following for subsec-25tion (1):

“(1) Notwithstanding the requirements of section530K(1), and without prejudice to any penalty to which theprincipal may be liable, a principal may, as appropriate—

(a) make a return required under section 530K(1)30after the due date relating to the relevantreturn period, or

(b) amend a return after the making of the return orthe deemed making of a return under section530K(2) but—35

(i) no amendment may be made in relation toany payment which has been the subjectof a deduction authorisation under section530D, and

(ii) no amendment may be made to a return40where a Revenue officer has commencedan audit or other investigation in relationto the tax affairs of the principal to whomthe return relates for the chargeableperiod in which the return period falls.”,45

(aa) in section 530M by substituting the following for subsec-tion (5):

83


(a) the manner by which principals shall communi-cate electronically with the Revenue Com- 5missioners,

(b) the particulars to be included in a return underthis section,

(c) the actions to be taken by a principal to ensurethat any relevant payment made by a principal 10relating to a return period and the tax liabilityrelated to that payment are accuratelyreflected on a return under this section,

(d) the format of a return which can be made in acase where a principal is appealing an assess- 15ment under section 530N, and

(e) any other related matters.”,

(ab) by substituting the following for section 530P:

“Treatment ofdeducted tax.

530P.—(1) Where a principal deductstax from a payment to a subcontractor in 20accordance with section 530F, such tax shallbe treated as a payment on account by thesubcontractor—

(a) of income tax for that tax year,where the tax was deducted in 25the basis period for a tax year,or

(b) of corporation tax for thataccounting period, where thetax was deducted in an account- 30ing period of a company.

(2) For the purposes of this Chapter, taxtreated in accordance with subsection (1)shall be known as deducted tax.

(3) (a) Deducted tax shall be available 35for offset by the Revenue Com-missioners against other taxliabilities of a subcontractor andin this subsection ‘tax’ has thesame meaning as in section 40960A.

(b) The Revenue Commissionersshall notify a subcontractor ofthe amount of deducted tax, ifany, which is offset against 45other tax liabilities of the sub-contractor.

(4) Where an assessment to income taxor, as the case may be, corporation tax hasbeen made in relation to a subcontractor 50

84

for a chargeable period, then deducted taxrelated to that period less any amountwhich is either—

(a) required to meet the income taxor, as the case may be, corpor-5ation tax liability of the subcon-tractor, or

(b) offset against other tax liabilitiesof the subcontractor under sub-section (3),10

may, subject to section 865, be repaid tothe subcontractor.

(5) No repayment of deducted tax shallbe made, except in accordance with subsec-tion (4).15

(6) No amount of deducted tax shall betreated as a payment on account, set off orrefunded more than once and no amount ofdeducted tax set off under subsection (3)or refunded under subsection (4) shall be20treated as a payment on account.”,

(ac) in section 530R(1) by inserting “, and the provisions ofsection 530P shall, with any necessary modifications,apply” after “them”,

(ad) in section 530R by substituting the following for subsec-25tion (2):

“(2) Except where the principal concerned makes aseparate payment to each member of the gang or group, aperson authorised by the gang or group, or in the case ofa partnership, the precedent partner, shall, in respect of30tax deducted from relevant payments to the gang or group,give to the Revenue Commissioners—

(a) the name, address and tax reference number ofevery person in the gang or group, and

(b) details of the proportion of the tax deducted to35which each person, named by virtue of thisprovision, is entitled.”,

(ae) in section 530S by substituting the following for subsec-tion (1):

“(1) Before giving a notification to the Revenue Com-40missioners under section 530C, a principal shall obtainfrom the subcontractor concerned a statement setting outappropriate details of the work giving rise to the payment,and the cost of the work, and such statement shall bearthe subcontractor’s name, business address and tax refer-45ence number.”,

(af) in section 530S(4) by substituting the following for para-graph (b):

“(b) Each subcontractor shall keep and maintain—

85

(i) a copy of each deduction authorisation sup-plied by a principal under section530F(4)(a), or

(ii) a copy of any details given under section530F(4)(b).”, 5

(ag) in section 530V by substituting the following for subsec-tion (1):

“(1) Regulations made under this Chapter may containsuch incidental, supplemental or consequential provisionsas appear to the Revenue Commissioners to be necessary 10or expedient—

(a) to enable persons to fulfil their obligationsunder this Chapter or under regulations madeunder this Chapter, or

(b) to give effect to the proper implementation and 15efficient operation of the provisions of thisChapter or regulations made under thisChapter.

(1A) Regulations made under this Chapter shall be laidbefore Dáil Éireann as soon as may be after they are made 20and, if a resolution annulling those regulations is passedby Dáil Éireann within the next 21 days on which DáilÉireann has sat after the regulations are laid before it, theregulations shall be annulled accordingly, but withoutprejudice to the validity of anything previously done 25under them.

(1B) (a) Anything required to be done by a principalunder this Chapter or under regulations madeunder this Chapter may be done by anotherperson acting under the authority of the 30principal.

(b) Where anything is done by such other personunder the authority of the principal, this Chap-ter shall apply as if it had been done by theprincipal. 35

(c) Anything purporting to have been done by oron behalf of a principal shall for the purposesof this Chapter be deemed to have been doneby the principal or by the principal’s authority,as the case may be, unless the contrary is 40proved.”,

and

(ah) in section 530V by substituting the following for subsec-tion (3):

“(3) Anything to be done by or under this Chapter by 45the Revenue Commissioners, other than the making ofregulations, may be done by any Revenue officer or may,if appropriate, be done through such electronic systems asthe Revenue Commissioners may put in place for the timebeing for any such purpose.”. 50

86

(2) This section comes into operation on and from the passing ofthis Act.

23.—Section 482 of the Principal Act is amended in subsection (5)by inserting the following after paragraph (b):

“(ba) Where qualifying expenditure is incurred after 85February 2012, the 40 days referred to in paragraph(b)(ii)(I)(B) shall, in relation to the chargeableperiod in which expenditure is incurred, include thedays which comprise National Heritage Week, asdesignated for each year by the Heritage Council, to10the extent that it falls within the period referred toin paragraph (b)(ii)(I).”.

24.—The Principal Act is amended in section 481—

(a) in subsection (1) by inserting the following definition afterthe definition of “authorised officer”:15

“ ‘director’ shall be construed in accordance with section433(4);”,

(b) in subsection (1), in the definition of “relevant invest-ment”, by substituting “qualifying company,” for “qual-ifying company.”,20

(c) in subsection (1) by inserting the following definition afterthe definition of “relevant investment”:

“ ‘specified relevant person’ means any director or sec-retary of the qualifying company.”,

(d) in subsection (2A)(g)(v) by substituting “subsection25(2CA)” for “subsection (2C)(ba)”,

(e) in subsection (2C)(b) by substituting “subject to subsec-tion (2CA),” for “subject to paragraph (ba),”,

(f) in subsection (2C) by deleting paragraph (ba),

(g) in subsection (2C) by deleting “and” before paragraph (d),30

(h) in subsection (2C)(d) by substituting “fulfilled,” for“fulfilled.”,

(i) in subsection (2C) by inserting the following after para-graph (d):

“and35

(e) if any sum representing—

(i) a repayment of a relevant investment, or

(ii) an amount in connection with a relevantinvestment, out of the proceeds ofexploiting the film—40

is paid to an allowable investor company orqualifying individual, as the case may be, before

87

Amendment ofsection 482 (relieffor expenditure onsignificant buildingsand gardens) ofPrincipal Act.

Amendment ofsection 481 (relieffor investment infilms) of PrincipalAct.

the Revenue Commissioners have notified thecompany in writing that a compliance report, asreferred to in paragraph (d)(iii), has beenreceived by them.”,

(j) by inserting the following after subsection (2C): 5

“(2CA) (a) Paragraph (b) of subsection (2C) shall notapply to financial arrangements in relation to atransaction, or series of transactions, wheresuch arrangements have been approved by theRevenue Commissioners. 10

(b) The Revenue Commissioners shall not approvefinancial arrangements, to which paragraph (b)of subsection (2C) would, but for this subsec-tion, apply unless:

(i) the arrangements relate to either or both— 15

(I) an investment made in a qualifyingfilm, and

(II) the filming of part of a film in a terri-tory other than a territory referred toin clause (I) or (II) of subsection 20(2C)(b)(i),

(ii) a request for approval is made by the quali-fying company to the Revenue Commis-sioners before such arrangements areeffected, 25

(iii) the qualifying company demonstrates to thesatisfaction of the Revenue Commis-sioners that it can provide, if requested,sufficient records to enable the RevenueCommissioners to verify— 30

(I) in the case of an investment, theamount of the investment made in thequalifying company and the personwho made the investment, and

(II) in the case of filming in a territory, the 35amount of each item of expenditureon the production of the qualifyingfilm expended in the territory,whether expended by the qualifyingcompany or by any other person, 40

and

(iv) they are satisfied that it is appropriate togrant such approval.

(c) In considering whether to grant an approvalunder this subsection in relation to financial 45arrangements, the Revenue Commissionersmay seek any information they consider appro-priate in relation to the arrangements or inrelation to any person who is, directly orindirectly, a party to the arrangements. 50

88

(d) Where the Revenue Commissioners haveapproved financial arrangements in accordancewith this subsection, no amount of moneyexpended, either directly or indirectly, as partof the arrangements may be regarded, for the5purposes of subsection (2A)(g)(iv), as anamount of money expended on either theemployment of eligible individuals or on theprovision of goods, services and facilities asreferred to in that subsection.”,10

(k) in subsection (2E)(m) by substituting “subsection (2CA)”for “subsection (2C)(ba)”, and

(l) by inserting the following after subsection (2E):

“(2F) Where a qualifying company fails to provide tothe Revenue Commissioners a compliance report as15referred to in subsection (2C)(d)(iii), within the time pro-vided for in regulations made under subsection (2E)(h),the specified relevant person shall provide such com-pliance report to the Revenue Commissioners within 2months after that time.”.20

25.—Section 486B(1) of the Principal Act is amended in the defini-tion of “qualifying period” by substituting “31 December 2014” for“31 December 2011”.

26.—(1) Part 16 of the Principal Act (as amended by section33(1)(a) of the Finance Act 2011 (No. 6 of 2011)) is amended in25section 494(3)—

(a) in paragraph (a)(i) by substituting “and which carries onrelevant trading activities from a fixed place of businessin the State, or” for “where those activities are principallycarried on in the State, or”,30

(b) in paragraph (a)(ii) by substituting the following forclause (II):

“(II) both the holding of such shares orsecurities or the making of such loansand the carrying on of relevant trad-35ing activities where relevant tradingactivities are carried on from a fixedplace of business in the State.”,

and

(c) by deleting paragraph (c).40

(2) Section 33 of the Finance Act 2011 is amended by substitutingthe following for subsection (2):

“(2) (a) Subject to paragraphs (b) and (c), this section haseffect in respect of shares issued on or after 25November 2011.45

89

Amendment ofsection 486B (relieffor investment inrenewable energygeneration) ofPrincipal Act.

Income tax relieffor investment incorporate trades —employment andinvestmentincentive and seedcapital scheme.

Amendment of Part29 (patents,scientific andcertain otherresearch, know-howand certaintraining) ofPrincipal Act.

(b) This section does not have effect in respect of sharesissued before 25 November 2011 and, for all the pur-poses of Part 16 of the Principal Act in connectionwith those shares, the Principal Act has effect as ifthis section had not been enacted. 5

(c) This section does not have effect in respect of sharesissued on or after 25 November 2011 and on orbefore 31 December 2011 where—

(i) the company issuing the shares, or

(ii) where the shares are acquired by an investment 10fund, the fund acquiring the shares,

elects by notice in writing to the Revenue Commis-sioners on or before 31 December 2011 that, for allthe purposes of Part 16 of the Principal Act in connec-tion with those shares, the Principal Act has effect as 15if this section had not been enacted.”.

27.—(1) Part 29 of the Principal Act is amended in Chapter 2—

(a) in section 766(1)(a) by deleting “and”, where it last occurs,in subparagraph (IA) of paragraph (iii) of the definitionof “expenditure on research and development” and by 20inserting after that clause—

“(IB) expenditure on research and developmentshall not include—

(A) except as provided for in subparag-raphs (vii) and (viii) of subsection 25(1)(b), any amount paid to anotherperson to carry on research anddevelopment activities, or

(B) expenditure incurred by a company inthe management or control of 30research and development activitieswhere such activities are carried on byanother person,

and ‘in the carrying on by it of research anddevelopment activities’ shall be construed 35accordingly, and”,

(b) in section 766(1)(a) by inserting the following after thedefinition of “group expenditure on research anddevelopment”:

“ ‘key employee’ has the meaning ascribed to it 40by section 472D;”,

(c) in section 766(1)(a) in the definition of “qualifying groupexpenditure on research and development” by deleting“means an amount equal to the excess of the amount ofgroup expenditure on research and development in 45relation to a relevant period over the threshold amountin relation to the relevant period;” and substituting thefollowing:

90

“shall be determined by the following formula—

A + B

where—

A is so much of the amount of group expendi-ture on research and development in5relation to a relevant period as does notexceed €100,000, and

B is the amount equal to the excess of theamount of group expenditure on researchand development in relation to the rel-10evant period over the threshold amount inrelation to the relevant period,

but the amount of qualifying group expenditureon research and development in relation to arelevant period shall not exceed the amount of15group expenditure on research and develop-ment in relation to that relevant period;”,

(d) in section 766(1)(a) by inserting the following after thedefinition of “research and development centre”:

“ ‘specified amount’ means an amount—20

(i) paid by the Revenue Commissioners inaccordance with subsection (4B) of thissection or section 766A(4B), as the casemay be, or

(ii) surrendered in accordance with subsection25(2A),

and a claim in respect of a specified amountshall be construed accordingly;”,

(e) in section 766(1)(b)(v) by deleting “by or through theState, any board established by statute, any public or30local authority or any other agency of the State;” andsubstituting the following:

“by or through—

(I) the State or another relevant MemberState, or35

(II) any board established by statute, any publicor local authority or any other agency ofthe State or another relevant MemberState;”,

(f) in section 766(1)(b)(vii) by deleting “5 per cent of that40expenditure shall be treated as if it were expenditureincurred by the company on the carrying on by it ofresearch and developing activities;” and substituting “thegreater of 5 per cent of that expenditure or €100,000,shall, to the extent that it does not exceed the expendi-45ture referred to in clause (I), be treated as if it wereexpenditure incurred by the company in the carrying onby it of research and development activities;”,

91

(g) in section 766(1)(b) by substituting the following for sub-paragraph (viii):

“(viii) where in any period a company—

(I) incurs expenditure on research anddevelopment, and 5

(II) pays a sum (not being a sum referredto in clause (II) of subparagraph (vii))to a person, other than to a personwho is connected (within the meaningof section 10) with the company, in 10order for that person to carry onresearch and development activities,and notifies that person in writingthat the payment is a payment towhich this clause applies and that the 15person may not make a claim underthis section in respect of such researchand development activities,

then, so much of the sum so paid as doesnot exceed the greater of 10 per cent of that 20expenditure or €100,000, shall, to the extentthat it does not exceed the expenditurereferred to in clause (I), be treated as if itwere expenditure incurred by the companyin the carrying on by it of research and 25development activities and expenditureincurred by that other person in connectionwith the activities referred to in clause (II)shall not be expenditure on research anddevelopment;”, 30

(h) in section 766(2) by deleting “Where” and substituting“Subject to subsection (2A) where”,

(i) by inserting the following after section 766(2):

“(2A) (a) Subject to paragraph (c), where as respects anyaccounting period a company is entitled to 35reduce the corporation tax of that accountingperiod by an amount, in accordance with sub-section (2), the company may instead on mak-ing a claim in that behalf to the appropriateinspector surrender all or part of that amount 40to one or such number of key employees as thecompany may specify but the aggregate of suchamounts, attributable to such employees, maynot exceed the amount so surrendered.

(b) The part of that amount that may be surren- 45dered by the company may not exceed the cor-poration tax of the accounting period, whichwould be chargeable, if no claim could bemade in accordance with subsection (2).

(c) A company may not make a claim under this 50subsection where, at the time of making such aclaim the company has a liability (within themeaning of section 960H) in respect of the cor-poration tax of the accounting period referred

92

to in subsection (2) or a previous accountingperiod.

(d) A claim in accordance with this subsection shallbe made in such form as the Revenue Commis-sioners may prescribe and the company shall5notify the key employee, in writing, of anyamount surrendered to that employee.

(2B) Where as respects any accounting period a com-pany makes a claim under subsections (2) and (2A) and inaccordance with that claim—10

(a) the corporation tax of an accounting period isreduced and an amount is surrendered, and

(b) either or both the amount so reduced or surren-dered, as the case may be, is subsequentlyfound not to have been as is authorised by15this section,

then, the amount which is not so authorised shall be firstattributable to a claim under subsection (2) in priority toa claim under subsection (2A).

(2C) Where in respect of an accounting period, a com-20pany makes a claim under subsection (2A) and it is sub-sequently found that the amount surrendered in accord-ance with that claim (hereafter in this section referred toas the ‘initial amount’) is not as authorised by this section,then, in relation to each key employee, the amount surren-25dered, which is authorised by this section, shall be anamount (hereafter in this section referred to as the ‘rel-evant authorised amount’) determined by the formula—

A × BC30

where—

A is the portion of the initial amount attributableto that key employee in accordance with theclaim under subsection (2A),

B is the aggregate amount that may be surrendered35by the company for that accounting period asis authorised by this section, and

C is the initial amount,

and the company shall notify the key employee in writingof the relevant authorised amount.”,40

(j) by inserting the following after section 766(4B):

“(4C) Where a company (in this section and section766A referred to as the ‘predecessor’) which has made aclaim in accordance with this section ceases to carry on atrade which includes the carrying on by it of research and45development activities and another company (in thissection and section 766A referred to as the ‘successor’)commences to carry on the trade and those research anddevelopment activities (the cessation and commencement

93

referred to in this section and section 766A as the‘event’) and—

(a) both the predecessor and successor were, at thetime of the event, members of the same groupof companies within the meaning of section 5411(1), and

(b) on or at any time within 2 years after the eventthe trade and the research and developmentactivities are not carried on otherwise than bythe successor, 10

then the successor may, to the extent that the predecessorhas not used an amount to reduce the corporation tax ofan accounting period in accordance with subsection (2),surrendered an amount in accordance with subsection(2A) or made a claim under subsection (4A) or (4B), carry 15forward any excess that the predecessor would have beenentitled to carry forward in accordance with subsection(4).”,

(k) by substituting the following for subsection 766(7B):

“(7B) (a) Any amount payable by the Revenue Commis- 20sioners to the company or another company byvirtue of subsection (4B) shall be deemed tobe an overpayment of corporation tax, for thepurposes only of section 960H(2).

(b) Any claim in respect of a specified amount shall 25be deemed for the purposes of section 1077Eto be a claim in connection with a credit and,for the purposes of determining an amount inaccordance with section 1077E(11) or1077E(12), a reference to an amount of tax 30that would have been payable for the relevantperiods by the person concerned shall be readas if it were a reference to a specified amount.

(c) Where a company makes a claim in respect of aspecified amount and it is subsequently found 35that the claim is not as authorised by thissection or by section 766A, as the case may be,then the company may be charged to tax underCase IV of Schedule D for the accountingperiod in respect of which the payment was 40made or the amount surrendered, as the casemay be, in an amount equal to 4 times so muchof the specified amount as is not so authorised.

(d) Where in accordance with paragraph (c) aninspector makes an assessment in respect of a 45specified amount, the amount so charged shallfor the purposes of section 1080 be deemed tobe tax due and payable and shall carry interestas determined in accordance with subsection(2)(c) of section 1080 as if a reference to the 50date when the tax became due and payablewere a reference to the date the amount waspaid by the Revenue Commissioners, or a ref-erence to the date the corporation tax of thecompany for the accounting period in respect 55

94

of which the amount was surrendered, was pay-able, as the case may be.”,

(l) in section 766A(1)(a) by inserting the following after thedefinition of “specified relevant period”:

“ ‘specified time’ in relation to a building or5structure means the period of 10 years commen-cing at the beginning of the accounting periodin which the predecessor incurs relevant expen-diture on that building or structure;”,

(m) in section 766A(1)(b)(i) by deleting “by the State;” and10substituting the following:

“by or through—

(I) the State or another relevant MemberState, or

(II) any board established by statute, any public15or local authority or any other agency ofthe State or of another relevant MemberState;”,

(n) in section 766A(3) by deleting “then the company” andsubstituting “then, subject to subsection (3A), the com-20pany”, and

(o) by inserting the following after subsection 766A(3):

“(3A) Where an event referred to in section 766(4C)occurs and—

(a) in connection with the event the predecessor25transfers to the successor a building or struc-ture in respect of which—

(i) the predecessor had made a claim undersection 766A,

(ii) the transfer is a transfer to which section30617 applies, and

(iii) at the time of the transfer either or both thespecified relevant period and the specifiedtime had not expired,

(b) on, or at any time within 2 years after, the event,35the trade and research and development activi-ties are not carried on otherwise than by thesuccessor, and

(c) the building or structure in respect of which rel-evant expenditure was incurred by the40predecessor—

(i) in a case where the specified relevantperiod had not expired, would continue tobe a qualifying building if a reference, inthe definition of ‘qualifying building’ to45activities carried on by the company wereconstrued as a reference to activities

95

Life assurancepolicies andinvestment funds:rates.

carried on by the company and the suc-cessor, and

(ii) continues to be used by the successorthroughout the remainder of the ‘specifiedtime’ for the purposes of research and 5development activities,

then—

(I) subparagraphs (i) and (ii) of subsection (3)shall not apply in relation to the transferby the predecessor, 10

(II) the successor may, to the extent that thepredecessor has not used an amount toreduce the corporation tax of an account-ing period in accordance with subsection(2) or made a claim under subsection (4A) 15or (4B) carry forward any excess that thepredecessor would have been entitled tocarry forward, in accordance with subsec-tion (4), and

(III) subsection (3) shall have effect as if a refer- 20ence to the company in subsection (3)(c)and thereafter in subsection (3) were a ref-erence to the successor.”.

(2) (a) Paragraphs (f) and (g) shall apply to accounting periodsending on or after 1 January 2012. 25

(b) Except where otherwise provided this section applies toaccounting periods commencing on or after 1 January2012.

28.—(1) The Principal Act is amended in section 730F(1)—

(a) by substituting the following for paragraph (a): 30

“(a) subject to paragraph (b), where the chargeableevent falls on or after 1 January 2001, at therate of—

(i) 25 per cent where the policyholder is acompany, and 35

(ii) 33 per cent in the case of any otherpolicyholder,”,

and

(b) in paragraph (b) by substituting “(S + 33) per cent” for“(S + 30) per cent”. 40

(2) The Principal Act is amended in section 730J—

(a) in paragraph (a)(i)(I) by substituting “30 per cent” for “27per cent”,

(b) in paragraph (a)(i)(II)(A) by substituting “(S + 33) percent” for “(S + 30) per cent”, 45

96

(c) in paragraph (a)(i)(II)(B) by substituting “33 per cent” for“30 per cent”, and

(d) in paragraph (a)(ii)(I) by substituting “(H + 30) per cent”for “(H + 27) per cent”.

(3) The Principal Act is amended in section 730K(1)—5

(a) in paragraph (a) by substituting “(S + 33) per cent” for “(S+ 30) per cent”, and

(b) in paragraph (b) by substituting “33 per cent” for “30 percent”.

(4) The Principal Act is amended in Chapter 1A of Part 27—10

(a) in section 739D by substituting the following for subsec-tion (5A):

“(5A) The amount referred to in subsection (2)(dd) isthe amount determined—

(a) where the unit holder is a company, by the15formula—

A × G × 100100 – (G × 25)

and

(b) in any other case, by the formula—20

A × G × 100100 – (G × 33)

where in relation to the formula in paragraphs (a) and(b)—

A is the appropriate tax payable on the transfer by25a unit holder of entitlement to a unit in accord-ance with subsection (2)(d), and

G is the amount of the gain on that transfer of thatunit divided by the value of that unit.”,

(b) in section 739E(1) by substituting the following for para-30graph (a):

“(a) subject to paragraph (ba), where the amount ofthe gain is provided by section 739D(2)(a), atthe rate of—

(i) 25 per cent where the unit holder is a com-35pany, and

(ii) 30 per cent in any other case,”,

(c) in section 739E(1) by substituting the following for para-graph (b):

“(b) subject to paragraph (ba), where the chargeable40event happens on or after 1 January 2001 and

97

the amount of the gain is provided by para-graph (b), (c), (d), (dd) or (ddd) of section739D(2), at the rate of—

(i) 25 per cent where the unit holder is a com-pany, and 5

(ii) 33 per cent in any other case,”,

(d) in section 739E(1)(ba) by substituting “(S + 33) per cent”for “(S + 30) per cent”,

(e) in section 739G(2)(c) by substituting “section739E(1)(a)(i)” for “section 739E(1)(a)”, and 10

(f) in section 739G(2) by substituting the following for para-graph (e):

“(e) where the unit holder is a company, the pay-ment is not a relevant payment and appro-priate tax has been deducted from the pay- 15ment, the amount received by the unit holdershall, subject to paragraph (g), be treated forthe purposes of the Tax Acts as the net amountof an annual payment chargeable to tax underCase IV of Schedule D from the gross amount 20of which income tax has been deducted at therate specified in section 739E(1)(b)(i),”.

(5) The Principal Act is amended in Chapter 4 of Part 27—

(a) in section 747D(a)(i)(I)(A) by substituting “(S + 33) percent” for “(S + 30) per cent”, 25

(b) in section 747D(a)(i)(I)(B) by substituting “30 per cent”for “27 per cent”,

(c) in section 747D(a)(i)(II)(A) by substituting “(S + 33) percent” for “(S + 30) per cent”,

(d) in section 747D(a)(i)(II)(B) by substituting “33 per cent” 30for “30 per cent”,

(e) in section 747D(a)(ii)(I) by substituting “(H + 30) percent” for “(H + 27) per cent”,

(f) in section 747E(1) by deleting paragraph (a),

(g) in section 747E(1)(b)(i) by substituting “(S + 33) per cent” 35for “(S + 30) per cent”, and

(h) in section 747E(1)(b)(ii) by substituting “33 per cent” for“30 per cent”.

(6) (a) Subsection (1) applies and has effect as respects the hap-pening of a chargeable event in relation to a life policy 40(within the meaning of Chapter 5 of Part 26 of the Princi-pal Act) on or after 1 January 2012.

(b) Subsection (2) applies and has effect as respects the receiptby a person of a payment in respect of a foreign life policy(within the meaning of Chapter 6 of Part 26 of the Princi- 45pal Act) on or after 1 January 2012.

98

(c) Subsection (3) applies and has effect as respects the dis-posal in whole or in part of a foreign life policy (withinthe meaning of Chapter 6 of Part 26 of the Principal Act)on or after 1 January 2012.

(d) Subsection (4) applies and has effect as respects the hap-5pening of a chargeable event in relation to an investmentundertaking (within the meaning of section 739B(1) ofthe Principal Act) on or after 1 January 2012.

(e) Paragraphs (a) to (e) of subsection (5) apply and haveeffect as respects the receipt by a person of a payment in10respect of a material interest in an offshore fund (withinthe meaning of Chapter 4 of Part 27 of the Principal Act)on or after 1 January 2012.

(f) Paragraphs (f) to (h) of subsection (5) apply and haveeffect as respects the disposal in whole or in part by a15person of a material interest in an offshore fund (withinthe meaning of Chapter 4 of Part 27 of the Principal Act)on or after 1 January 2012.

29.—Chapter 5 of Part 26 of the Principal Act is amended—

(a) in section 730D(2)(b)(vi) by substituting “any Court,” for20“any Court, or”,

(b) in section 730D(2)(b) by inserting the following after sub-paragraph (vii):

“(viii) a pension scheme being an exemptapproved scheme within the meaning of25section 774 or a trust scheme to whichsection 784 or 785 applies, or

(ix) an approved retirement fund within themeaning of section 784A or an approvedminimum retirement fund within the30meaning of section 784C,”,

(c) in section 730E(3)(e)(vi) by substituting “any Court,” for“any Court, or”, and

(d) in section 730E(3)(e) by inserting the following after sub-paragraph (vii):35

“(viii) a pension scheme being an exemptapproved scheme within the meaning ofsection 774 or a trust scheme to whichsection 784 or 785 applies, or

(ix) an approved retirement fund within the40meaning of section 784A or an approvedminimum retirement fund within themeaning of section 784C,”.

30.—(1) Chapter 1 of Part 27 of the Principal Act is amended—

(a) in section 738(2) by substituting the following for para-45graph (b):

99

Amendment ofChapter 5(policyholders —new basis) of Part26 of Principal Act.

Undertakings forcollectiveinvestment and unitholders.

“(b) (i) Subject to subparagraph (ii), as respects anundertaking for collective investmentwhich is a company, the corporation taxwhich is chargeable on its profits on whichcorporation tax falls finally to be borne for 5a chargeable period beginning on or after8 February 2012 shall, for the purposes ofthe Tax Acts, be such tax, before it isreduced by any credit, relief or otherreduction under those Acts, computed as 10if the rate of corporation tax were 30 percent.

(ii) For the purposes of this paragraph, asrespects an undertaking for collectiveinvestment which is a company, where an 15accounting period of the company beginsbefore 8 February 2012 and ends on orafter that date, it shall be divided into 2parts, one beginning on the date on whichthe accounting period begins and ending 20on 7 February 2012, and the other begin-ning on 8 February 2012 and ending onthe date on which the accounting periodends, and both parts shall be treated as ifthey were separate accounting periods of 25the company and the corporation tax forthe chargeable period ending on 7February 2012 shall be computed as if therate of corporation tax were 20 per cent.”,

(b) in section 738(2)(d) by substituting the following for sub- 30paragraph (i):

“(i) the income tax which is chargeable on theincome arising, and the capital gains taxwhich is chargeable on the chargeablegains accruing, in a year of assessment to 35the undertaking shall be the amount ofsuch tax, before it is reduced by any credit,relief or other deduction under any pro-vision, other than under this section, of theTax Acts or the Capital Gains Tax Acts, 40which is the rate of 30 per cent of theincome arising, and the chargeable gainsaccruing to the undertaking, but, inrelation to the year of assessment com-mencing on 1 January 2012, payments 45made and gains realised in the period from1 January 2012 to 7 February 2012 shall bechargeable to income tax or capital gainstax, as the case may be, at the rate of 20per cent, and”, 50

(c) in section 739(1)(b) by substituting “rate of 30 per cent”for “standard rate”,

(d) in section 739(2)(d), in the construction of “A”, by substi-tuting “is 30” for “is the standard rate per cent for theyear of assessment in which the payment is made”, and 55

(e) in section 739(4)(a)(i) by substituting “rate of 30 per cent”for “standard rate of income tax”.

100

(2) (a) Paragraphs (c) and (d) of subsection (1) apply as respectspayments made on or after 8 February 2012.

(b) Paragraph (e) of subsection (1) applies as respects any dis-posal made on or after 8 February 2012.

31.—Section 739D of the Principal Act is amended—5

(a) in subsection (7B)(a) and (b) by substituting “subsection(7) or (9), as the case may be,” for “subsection (7)” ineach place, and

(b) by inserting the following after subsection (8D):

“(8E) (a) In this subsection—10

‘relevant jurisdiction’ has the same meaning asin section 256F(1) of the Companies Act 1990;

‘scheme of migration’ means either of thefollowing—

(i) a migrating company (within the meaning15of section 256F of the Companies Act1990) which holds an authorisation fromthe Central Bank of Ireland to carry onbusiness in the State under Part XIII ofthat Act, and which authorisation has not20been revoked, or

(ii) a unit trust which has migrated from a rel-evant jurisdiction and which holds anauthorisation from the Central Bank ofIreland to carry on business in the State as25an authorised unit trust scheme under theUnit Trusts Act 1990 or as a unit trustwithin the meaning of the relevant Regu-lations, and which authorisation has notbeen revoked.30

(b) Where, under a scheme of migration, a companyor a unit trust, as the case may be, comeswithin the definition of ‘investment under-taking’ in section 739B(1), the following pro-visions apply—35

(i) subject to subparagraph (iii), a gain shallnot be treated as arising to that investmentundertaking on the happening of a charge-able event in respect of a unit holder hold-ing units in that investment undertaking at40the time of the scheme of migration,otherwise than in respect of a unit holderwhose name is included in the schedulereferred to in subparagraph (ii), where theinvestment undertaking, within 30 days of45the scheme of migration taking place, for-wards to the inspector or other officer ofthe Revenue Commissioners nominatedunder subsection (7B)(d), a declaration ofa kind referred to in subparagraph (ii),50

101

Amendment ofsection 739D (gainarising on achargeable event)of Principal Act.

Amendment ofsection 739G(taxation of unitholders ininvestmentundertakings) ofPrincipal Act.

Amalgamations ofinvestmentundertakings andoffshore funds.

(ii) the declaration referred to in subparagraph(i) is a declaration in writing made andsigned by the investment undertakingwhich—

(I) declares to the best of the investment 5undertaking’s knowledge and beliefthat at the time of the scheme ofmigration no units in that investmentundertaking were held by a personwho was resident in the State, other 10than the persons whose names andaddresses are set out in the scheduleto the declaration, and

(II) contains a schedule which sets out thename and address of each person 15who, at the time of the scheme ofmigration, was resident in the State,

and

(iii) a gain which, by virtue of subparagraph (i),would not otherwise be treated as arising 20to that investment undertaking on thehappening of a chargeable event in respectof a unit holder shall nevertheless betreated as so arising where, immediatelybefore the chargeable event, the invest- 25ment undertaking is in possession of anyinformation which would reasonably sug-gest that the unit holder is resident in theState.”.

32.—Section 739G(2) of the Principal Act is amended by substitut- 30ing the following for paragraph (h):

“(h) the amount of a payment made to a unit holder—

(i) by an investment undertaking, or

(ii) arising from the transfer by way of sale, or other-wise, of an entitlement to a unit in an invest- 35ment undertaking,

shall not be chargeable to income tax or capital gainstax where the unit holder is a company which is notresident in the State or the unit holder, not being acompany, is neither resident nor ordinarily resident in 40the State,”.

33.—Part 27 of the Principal Act is amended—

(a) in Chapter 1A by inserting the following after section739H:

“Investmentundertakings:amalgamationswith offshorefunds.

739HA.—(1) In this section— 45

‘material interest’ shall be construed inaccordance with section 743;

102

‘offshore fund’ has the meaning assigned toit by section 743;

‘offshore state’ has the same meaning as insection 747B(1);

‘scheme of amalgamation’ means an5arrangement whereby the assets of aninvestment undertaking are transferred toan offshore fund of an offshore state inexchange for the issue by the offshore fundof an offshore state of a material interest in10that offshore fund to each of the unit hold-ers in the investment undertaking, in pro-portion to the value of the units held byeach unit holder, and as a result of whichthe value of those units becomes negligible.15

(2) The cancellation of units in aninvestment undertaking arising from anexchange in relation to a scheme of amalga-mation shall not be a chargeable event andthe amount invested by a unit holder for,20and the date of, the acquisition of amaterial interest in an offshore fund of anoffshore state under that scheme shall forthe purposes of Chapter 4 be the amountinvested by the unit holder for, and the date25of, the acquisition of those units in theinvestment undertaking.”,

and

(b) in Chapter 4 by inserting the following after section 747F:

“Offshorefunds:amalgamationswithinvestmentundertakings.

747FA.—(1) In this section—30

‘investment undertaking’ has the samemeaning as in section 739B(1);

‘scheme of amalgamation’ means anarrangement whereby the assets of an off-shore fund are transferred to an investment35undertaking in exchange for the issue bythe investment undertaking of units to eachof the persons who have a material interestin the offshore fund, in proportion to thevalue of that interest, and as a result of40which the value of that interest becomesnegligible.

(2) Where, in connection with a schemeof amalgamation, a person disposes of amaterial interest in an offshore fund and45receives, in place of that interest, units inan investment undertaking, the disposal ofthe interest in the offshore fund shall notgive rise to a gain but the units acquired inthe investment undertaking under that50scheme shall for the purposes of Chapter1A be treated as acquired at the same timeand at the same cost as the interest in theoffshore fund.”.

103

Amendment ofsection 747E(disposal of aninterest in offshorefunds) of PrincipalAct.

Scheme ofmigration andamalgamation.

34.—Section 747E of the Principal Act is amended—

(a) in subsection (1) by substituting “Subject to subsection(1A), where on or after” for “Where on or after”, and


“(1A) (a) In this subsection— 5

‘umbrella scheme’ means an offshore fund—

(i) which is divided into a number of sub-funds, and

(ii) in which each person who has a materialinterest in a sub-fund is entitled to 10exchange the whole or part of suchinterest for an interest in another sub-fundof the offshore fund.

(b) A disposal under subsection (1) does notinclude any exchange by a person who has a 15material interest in a sub-fund of an offshorefund which is an umbrella scheme, effected byway of a bargain made at arm’s length by thatoffshore fund, of the whole or part of suchinterest for an interest in another sub-fund of 20that offshore fund.

(c) Any exchange referred to in paragraph (b) shallnot be regarded as a disposal by a person of amaterial interest in an offshore fund which isan umbrella scheme.”. 25

35.—Section 739D of the Principal Act is amended in subsection(8D)—

(a) in paragraph (a) by substituting the following for thedefinition of “scheme of migration and amalgamation”:

“ ‘scheme of migration and amalgamation’ 30means an arrangement whereby the assets of anoffshore fund are transferred to an investmentundertaking in exchange for the issue by theinvestment undertaking of units—

(i) to each of the persons who have an interest 35in the offshore fund, in proportion to thevalue of that interest, and as a result ofwhich the value of that interest becomesnegligible, or

(ii) to that offshore fund.”, 40

(b) in paragraph (b) by substituting “Subject to paragraph (d),a gain shall not be treated as arising” for “A gain shallnot be treated as arising”,

104

(c) in paragraph (b)(ii) by substituting “inspector or otherofficer of the Revenue Commissioners nominated undersubsection (7B)(d)” for “Collector-General”, and

(d) by inserting the following after paragraph (c):

“(d) A gain which, by virtue of paragraph (b), would5not otherwise be treated as arising to an invest-ment undertaking on the happening of achargeable event in respect of a unit holdershall nevertheless be treated as so arisingwhere, immediately before the chargeable10event, the investment undertaking is in pos-session of any information which wouldreasonably suggest that the unit holder is resi-dent in the State.”.

36.—(1) Part 8 of the Principal Act is amended—15

(a) in section 256(1) in the definition of “appropriate tax”—

(i) in paragraph (a) by substituting “30 per cent” for “27per cent”,

(ii) in paragraph (b) by substituting “30 per cent” for “27per cent”, and20

(iii) in paragraph (c) by substituting “33 per cent” for “30per cent”,

(b) in section 256(1) by inserting the following after the defini-tion of “pension scheme”:

“ ‘Personal Retirement Savings Account’ has the same25meaning as in section 787A;”,

(c) in section 256(1) by substituting the following for para-graph (k) of the definition of “relevant deposit”—

“(k) which is made by a PRSA provider and which isheld for the purposes of a Personal Retirement30Savings Account, where the PRSA providerhas provided the relevant deposit taker withthe number assigned to that provider by theRevenue Commissioners;”,

(d) in section 267B—35

(i) in subsection (2)(b) by substituting “30 per cent” for“27 per cent”, and

(ii) in subsection (3)(b) by substituting “30 per cent” for“27 per cent”,

(e) in section 267F by deleting subsection (2),40

(f) in the title to Chapter 7 by substituting “outside the State”for “within the European Communities”,

(g) in section 267M(1) by inserting the following before thedefinition of “specified interest”—

105

Amendment of Part8 (annual payments,charges andinterest) ofPrincipal Act.

“ ‘foreign deposit interest’ means interest arising in aforeign territory which would be interest payable inrespect of a relevant deposit within the meaning of section256(1) if—

(a) paragraphs (c), (d) and (g) of the definition of 5‘relevant deposit’ in section 256(1) weredeleted, and

(b) there were included in the definition of ‘relevantdeposit taker’ in section 256(1), bodies—

(i) established in accordance with the law of a 10foreign territory, and

(ii) authorised under the laws of that foreignterritory to accept deposits of money;

‘foreign territory’ means a territory other than a MemberState of the European Communities;”, 15

and

(h) in section 267M by substituting the following for subsec-tion (2)—

“(2) (a) Notwithstanding section 15 and subject to para-graph (b), where the taxable income of an indi- 20vidual includes—

(i) specified interest, the part of taxableincome, equal to that specified interest,shall be chargeable to tax at the rate speci-fied in paragraph (b) of the definition of 25‘appropriate tax’ in section 256(1), or

(ii) foreign deposit interest, so much of the partof taxable income, equal to that foreigndeposit interest, as would otherwise bechargeable to tax at the standard rate, 30shall instead be chargeable to tax at therate specified in paragraph (b) of thedefinition of ‘appropriate tax’ in section256(1).

(b) Paragraph (a) shall not apply where any liability 35of the individual for a year of assessment inrespect of the specified interest or foreigndeposit interest, as the case may be, has notbeen discharged on or before the specifiedreturn date for the chargeable period (within 40the meaning of section 950) for that year, andwhere that paragraph does not apply, the partof taxable income, equal to that specifiedinterest or that foreign deposit interest, shallbe chargeable to tax at the rate of tax described 45in the Table to section 15 as the higher rate.”.

(2) (a) Paragraphs (a) to (e) of subsection (1) apply to any pay-ment or crediting of relevant interest (within the meaningof Chapter 4 of Part 8 of the Principal Act) made on orafter 1 January 2012. 50

106

(b) Paragraphs (f) to (h) of subsection (1) apply to foreigndeposit interest or specified interest (both within themeaning of section 267M(1) (as amended by subsection(1)(g)) of the Principal Act), as the case may be, whichis received on or after 8 February 2012.5

37.—Part 8A of the Principal Act is amended—

(a) in section 267N by substituting the following for the defini-tion of “finance company”:

“ ‘finance company’ means a company whose income con-sists wholly or mainly of either or both of the following—10

(a) income from the leasing of machinery or plant,and

(b) income from the carrying on of specified finan-cial transactions;”,

and15

(b) by substituting the following for section 267U:

“267U.—(1) This Part applies to a specified financialtransaction where a person who is—

(a) a party to the transaction, and

(b) within the charge to tax,20

makes an election in writing to the inspector (within themeaning of section 950) that this Part applies to thattransaction.

(2) An election under this section—

(a) shall be made in a form approved by the25Revenue Commissioners and containing suchparticulars relating to the transaction con-cerned, and the parties to that transaction, asmay be specified in that form, and

(b) may be made either in respect of an individual30transaction or in respect of a series of trans-actions of a similar nature.

(3) Where an election is made in accordance with thissection—

(a) this Part applies to that transaction or series of35transactions, and

(b) the party making the election shall notify anyother person who is a party to a specified finan-cial transaction, that the transaction is a speci-fied financial transaction.”.40


107

Amendment of Part8A (specifiedfinancialtransactions) ofPrincipal Act.

Withholding taxrelating to certaindividends andinterest.

(a) in section 33(1) by deleting “shall be charged by the Com-missioners designated for that purpose by the IncomeTax Acts, and”,

(b) in section 64(5) by substituting the following for para-graph (c): 5

“(c) if in paragraph 1A of Part 1 of Schedule 2,clauses (1) and (2) of the definition of ‘charge-able person’ were deleted.”,

(c) by deleting section 853,

(d) in Part 1 of Schedule 2 by inserting the following after 10paragraph 1:

“1A. In this Schedule—

‘chargeable person’ means any of the following:

(a) a person who is entrusted with the pay-ment of any dividends which are pay- 15able to any persons in the State outof any public revenue;

(b) a person in the State who is entrustedwith the payment of any dividends towhich Chapter 2 of Part 4 applies; 20

(c) a banker or other person in the Statewho obtains payment of any divid-ends in such circumstances that thedividends are chargeable to incometax under Schedule C or, in the case 25of dividends to which Chapter 2 ofPart 4 applies, under Schedule D;

(d) a banker in the State who sells orotherwise realises coupons in suchmanner that the proceeds of the sale 30or realisation are chargeable toincome tax under Schedule C or, inthe case of dividends to which Chap-ter 2 of Part 4 applies, under Sched-ule D; 35

(e) a dealer in coupons in the State whopurchases coupons in such mannerthat the price paid on the purchase ischargeable to income tax underSchedule C or, in the case of divid- 40ends to which Chapter 2 of Part 4applies, under Schedule D;

‘specified dividend income’ means—

(a) the amount of dividends which arepayable to any person in the State out 45of any public revenue,

(b) the amount of dividends to whichChapter 2 of Part 4 applies,

108

(c) the amount of dividends received by achargeable person in the State in suchcircumstances that the dividends arechargeable to income tax underSchedule C or, in the case of divid-5ends to which Chapter 2 of Part 4applies, under Schedule D,

(d) the proceeds of sale or realisation ofcoupons where those proceeds arechargeable to income tax under10Schedule C or, in the case of divid-ends to which Chapter 2 of Part 4applies, under Schedule D, or

(e) the price paid on purchase of couponswhere such price paid on purchase is15chargeable to income tax underSchedule C or, in the case of divid-ends to which Chapter 2 of Part 4applies, under Schedule D.”,

(e) by deleting Parts 2 and 3 of Schedule 2,20

(f) by substituting the following for Part 4 of Schedule 2—

“PART 4

Public revenue dividends, dividends to which Chapter 2 ofPart 4 applies, proceeds of coupons and price paid on

purchase of coupons.25

14. (1) Subject to Chapter 2 of Part 3, everychargeable person shall, on making a pay-ment of specified dividend income, deductand retain a sum representing the amountof the income tax due on that income and30pay that income tax on behalf of the per-son entitled to that income.

(2) The payment of the income tax by thechargeable person shall be deemed to be apayment of the income tax by the persons35entitled to the specified dividend incomeand shall be allowed by those persons onthe receipt of the residue of the dividends.

15. (1) Every chargeable person who makes a pay-ment of specified dividend income shall40make for each year of assessment within20 days from the end of the year of assess-ment, a return to the Collector-General ofthat specified dividend income and of theincome tax in relation to that specified45dividend income.

(2) The income tax in relation to payments ofspecified dividend income which isrequired to be included in a return shall—

(a) be due at the time by which the return50is to be made, and

109

(b) be paid by the chargeable person tothe Collector-General,

and the income tax so due shall be payableby the chargeable person without the mak-ing of an assessment; but income tax which 5has become so due may be assessed on thechargeable person (whether or not it hasbeen paid when the assessment is made) ifthat tax or any part of it is not paid on orbefore the due date. 10

(3) A return due under this Schedule shall bein a form prescribed by the Revenue Com-missioners and shall include a declarationto the effect that the return is correct andcomplete. 15

16. (1) Where it appears to the inspector that thereis any amount of income tax in relationto a payment of specified dividend incomewhich should have been but was notincluded in a return or where the inspector 20is dissatisfied with any return, the inspec-tor may make an assessment on thechargeable person to the best of his or herjudgement. Any amount of income tax inrelation to a payment of specified dividend 25income due under an assessment made byvirtue of this subparagraph shall betreated for the purpose of interest onunpaid tax as having been payable at thetime when it would have been payable if a 30correct return had been made.

(2) Any income tax assessed on a chargeableperson under this Schedule shall be duewithin one month after the issue of thenotice of assessment (unless that tax is due 35earlier under paragraph 15) subject to anyappeal against the assessment, but no suchappeal shall affect the date when anyamount is due under paragraph 15.

(3) On the determination of an appeal against 40an assessment under this Chapter, anyincome tax overpaid shall be repaid.

17. Where any item has been incorrectly includedin a return as income tax, the inspector maymake such assessments, adjustments or set-offs 45as may in his or her judgement be required forsecuring that the resulting liabilities to tax,including interest on unpaid tax, whether of thechargeable person or any other person, are inso far as possible the same as they would have 50been if the item had not been so included.

18. (1) A chargeable person shall keep records todistinguish the separate accounts of eachof the persons entitled to receive specifieddividend income and such records shall 55include—

110

(a) the name and address of each suchperson,

(b) particulars of the amounts payable,and

(c) in the case of amounts payable out of5any public revenue, particulars of thepublic revenue out of which each sep-arate amount is payable.

(2) Records kept by a chargeable person inaccordance with subparagraph (1) shall—10

(a) be kept and retained by the chargeableperson for a period of 6 years fromthe day on which the payment wasmade, and

(b) on being required by notice in writing15given to the chargeable person by aninspector, be made available to theinspector within the time specified inthe notice.

19. The provisions of section 898N shall apply with20any necessary modifications as respects powersof an authorised officer as if a reference in thatsection to—

(a) books and records were a reference tobooks and records kept for the pur-25poses of this Schedule,

(b) an authorised officer in that sectionwere a reference to a Revenue officeras defined in section 898B, and

(c) a reference in that section to a paying30agent were a reference to a charge-able person.

20. The provisions of the Income Tax Acts relatingto—

(a) assessments to income tax,35

(b) appeals against such assessments(including the rehearing of appealsand the statement of a case for theopinion of the High Court), and

(c) the collection and recovery of income40tax,

shall, in so far as they are applicable, apply tothe assessment, collection and recovery ofincome tax due under this Schedule.

21. (1) Any amount of income tax payable in45accordance with this Schedule shall, with-out the making of an assessment, carryinterest from the date when the amount

111

Amendment ofsection 198 (certaininterest not to bechargeable) ofPrincipal Act.

becomes due and payable until paymentfor any day or part of a day during whichthe amount remains unpaid, at a rate of0.0274 per cent.

(2) Subsections (3) to (5) of section 1080 shall 5apply in relation to interest payable undersubparagraph (1) as they apply in relationto interest payable under section 1080.

(3) In its application to any income tax chargedby any assessment made in accordance 10with this Schedule, section 1080 shallapply as if subsection (2)(b) of that sectionwere deleted.

22. Where—

(a) income tax in respect of the proceeds 15of the sale or realisation of any cou-pon or in respect of the price paid onthe purchase of any coupon has beenaccounted for under this Part by anybanker or any dealer in coupons, and 20

(b) the Revenue Commissioners are satis-fied that the dividends payable on thecoupons in relation to which suchproceeds or such price arises havebeen subsequently paid in such man- 25ner that income tax has beendeducted from such dividends underany of the provisions of this Schedule,

then the income tax so deducted shall berepaid.”, 30

and

(g) in Part 5 of Schedule 2 by the deletion of paragraph 27.

(2) This section shall come into operation on such day or days asthe Minister for Finance may by order or orders appoint and differ-ent days may be appointed for different purposes or different 35provisions.

39.—(1) Section 198 of the Principal Act is amended in subsection(1)(c) by substituting the following for subparagraph (iii)—

“(iii) a person shall not be chargeable to income tax inrespect of interest paid by a company— 40

(I) if the person is not a resident of the Stateand is regarded as being a resident of a rel-evant territory for the purposes of this sub-section, or

(II) the person is a company controlled in 45accordance with section 172D(3)(b)(ii), ora company the principal class of shares ofwhich are shares to which section172D(3)(b)(iii) applies,

112

and the interest is interest to which section 64(2)applies, an interest payment to which section246A applies or interest paid in respect of anasset covered security within the meaning ofsection 3 of the Asset Covered Securities Act52001,”.

(2) This section shall apply to interest paid on or after the passingof this Act.

40.—(1) Section 80A of the Principal Act is amended in subsec-tion (1), in the definition of “specified assets”, by substituting “assets10the predictable useful life of which does not exceed 8 years and whichare” for “relevant short-term assets”.

(2) This section applies as respects accounting periods commen-cing on or after 1 January 2012.

41.—(1) Section 110 of the Principal Act is amended in subsection15(1) in the definition of “carbon offsets”—

(a) in paragraph (b) by substituting “reporting,” for “report-ing, or”,

(b) by inserting the following after paragraph (b)—

“(ba) a forest carbon offset issued pursuant to the20United Nations Reduced Emissions fromDeforestation and Forest Degradation prog-ramme, or”,

and

(c) by substituting the following for paragraph (c)—25

“(c) any right that is directly attributable to an offset,allowance, permit, licence or right to emitwithin paragraph (a), (b) or (ba);”.

(2) Section 110 of the Principal Act is amended in subsection (1),in paragraph (f) of the definition of “qualifying company”, by30inserting “on or before the specified return date (within the meaningof section 950) for the first accounting period, in relation to which itis such a company,” after “prescribed form,”.

(3) Section 110 of the Principal Act is amended in subsection (4A)by substituting the following for paragraph (b)(i):35

“(i) a person who is resident in the State or, if not soresident, is otherwise within the charge to cor-poration tax in the State in respect of thatinterest or other distribution, or”.

42.—(1) The Principal Act is amended by inserting the following40after section 452—

“452A.—(1) In this section—

113

Amendment ofsection 80A(taxation of certainshort-term leasesplant andmachinery) ofPrincipal Act.

Amendment ofsection 110(securitisation) ofPrincipal Act.

Application ofsection 130 ofPrincipal Act tocertain non-yearlyinterest.

‘additional tax’, in relation to a territory in respect of a qualify-ing company for an accounting period, means the amount deter-mined by the formula—

A × B/100

where— 5

A is the specified amount for that territory in respect of thequalifying company for the accounting period, and

B is the rate per cent specified in section 21(1)(f);

‘deductible amount’, in relation to a territory in respect of aqualifying company for an accounting period, means the amount 10determined by the formula—

C × D/E

where—

C is the specified amount for that territory in respect of thequalifying company for the accounting period, 15

D is the specified tax in relation to such specified amount, and

E is the additional tax in relation to that specified amount;

‘foreign tax in respect of a qualifying company for an accountingperiod’ means, in relation to a company carrying on business ina territory, the amount determined by the formula— 20

F × G/100

where—

F is so much of the specified amount for the territory in respectof the qualifying company for the accounting period as ispayable to the company carrying on business, and 25

G is the rate per cent of tax in the territory which is charge-able on—

(a) interest received in the territory by a company fromsources outside the territory, or

(b) where the amount of interest payable to the company 30carrying on business is taken into account in comput-ing business profits of that company, business profits;

‘interest’ means interest other than—

(a) yearly interest, and

(b) interest to which subsection (2B) of section 130, sub- 35section (2)(a), (3)(a) or (3A)(a) of section 452 orsubsection (2) of section 845A applies;

‘qualifying company’ means a company—

(a) which advances money in the ordinary course of atrade carried on in the State which includes the lend- 40ing of money, and

114

(b) for which any interest payable in respect of moneyso advanced is taken into account in computing theincome of that trade of the company;

‘specified amount’, in relation to a territory in respect of a quali-fying company for an accounting period, means the amount of5specified interest that is payable for that accounting period bythe qualifying company to a company or more than one com-pany carrying on a business in the territory where the interest istaken into account in that territory in computing the income,profits or gains of that business;10

‘specified interest’, in relation to a qualifying company, meansinterest, payable by the company in the course of a tradereferred to in the definition of ‘qualifying company’, which apartfrom this section, would be treated as a distribution by virtueonly of section 130(2)(d)(iv);15

‘specified tax’, in relation to a specified amount in respect of aqualifying company for an accounting period, means the lesserof—

(a) the additional tax in relation to that specifiedamount, and20

(b) the aggregate amount of foreign tax in respect of thequalifying company for the accounting period, inrelation to companies carrying on business in the ter-ritory to which the specified amount relates;

‘territory’ means a territory other than a relevant territory25within the meaning of section 246.

(2) Section 130(2)(d)(iv) shall not apply to the deductibleamount for a territory in respect of a qualifying company for anaccounting period.”.

(2) This section applies in respect of accounting periods commen-30cing on or after 1 January 2012.

43.—(1) Section 238 of the Principal Act is amended in subsection(6) by deleting “resident in the State”.

(2) Section 241 of the Principal Act is amended in subsection(2)—35

(a) in paragraph (a)(i) by substituting “section 238(2) or246(2)” for “section 238(2)”,

(b) in paragraph (a)(ii) by substituting “section 238(2) or246(2)” for “section 238(2)”,

(c) by deleting “and” before paragraph (b), and40

(d) by substituting the following for paragraph (b):

“(b) section 239(5) shall apply to income tax inrespect of payments referred to in paragraph(a), and

115

Income tax onpayments by non-resident companies.

Emissionsallowances.

(c) income tax in respect of which a return is to bemade under paragraph (a) shall, for the pur-poses of the charge, assessment, collection andrecovery from the company making the pay-ments of that tax and of any interest or penal- 5ties on that tax, be treated as if it were corpor-ation tax chargeable for the accounting periodfor which the return is required under para-graph (a).”.

44.—(1) The Principal Act is amended— 10

(a) by inserting the following after section 81B:

“Emissionsallowances.


‘Directive’ has the same meaning as insection 540A;

‘emissions allowance’ means— 15

(a) an allowance within the meaningof Article 3 of the Directive,

(b) an emission reduction unit orERU, within the meaning ofArticle 3 of the Directive, or 20

(c) a certified emission reduction orCER, within the meaning ofArticle 3 of the Directive;

‘profit and loss account’, in relation to anaccounting period of a company, has the 25meaning assigned to it by generallyaccepted accounting practice and includesan income and expenditure account wherea company prepares accounts in accordancewith international accounting standards. 30

(2) Notwithstanding anything in section81, any amount, computed in accordancewith generally accepted accounting prac-tice, charged to the profit and loss accountof a company, for the period of account 35which is the same as the accounting period,in respect of expenditure, for the purposesof a trade carried on by the company, onthe purchase of an emissions allowanceshall be allowed to be deducted as expenses 40in computing the amount of the profits orgains of the company to be charged to taxunder Case I of Schedule D for theaccounting period.

(3) Subject to section 540A, where a 45company disposes of an emissions allow-ance which it purchased for the purposes ofa trade carried on by it, the considerationfor such disposal shall be treated as a trad-ing receipt of the trade.”, 50

116

and

(b) by inserting the following after section 540:

“Disposal ofcertainemissionsallowances.


‘Agency’ means the Environmental Protec-tion Agency, being a competent authority5designated under Article 18 of theDirective;

‘aircraft operator’ has the same meaning asin Article 3 of the Directive;

‘Directive’ means Directive 2003/87/EC of10the European Parliament and of theCouncil of 13 October 20032 (as amendedby Directive 2004/101/EC of the EuropeanParliament and of the Council of 27October 20043, Directive 2008/101/EC of15the European Parliament and of theCouncil of 19 November 20084 andDirective 2009/29/EC of the European Par-liament and of the Council of 23 April20095);20

‘emissions allowance’ means an allowancewithin the meaning of Article 3 of theDirective;

‘installation’ and ‘operator’ have the samemeanings respectively as in Article 3 of25the Directive;

‘permit’ means a greenhouse gas emissionspermit within the meaning of Article 3 ofthe Directive;

‘relevant person’ means—30

(a) a person to whom a permit hasbeen issued in accordance withArticles 5 and 6 of the Directivein respect of an installation inrelation to which the person is35an operator, or

(b) an aircraft operator;

‘relevant scheme’ means—

(a) a scheme of reconstruction oramalgamation in relation to40which section 615 applies,

(b) a transfer of an asset in relationto which section 617 applies, or

2OJ No. L275, 25.10.2003, p.323OJ No. L338, 13.11.2004, p.184OJ No. L8, 13.1.2009, p.35OJ No. L140, 5.6.2009, p.63

117

(c) a transfer of a trade, or part of atrade, in relation to whichsection 631 applies.

(2) (a) Subject to paragraphs (b), (c)and (d) and notwithstanding 5section 110 or any other pro-vision of the Tax Acts, where—

(i) a relevant person sells,transfers or otherwise dis-poses of an emissions 10allowance (in this sectionreferred to as a ‘relevantemissions allowance’)received or receivable freeof charge by that person 15from the Agency in accord-ance with the Directive, or

(ii) a company sells, transfers orotherwise disposes of a rel-evant emissions allowance 20which the companyacquired under, or as partof, a relevant scheme,

such a sale, transfer or disposalshall constitute the disposal of an 25asset for the purposes of theCapital Gains Tax Acts and betreated as not being a disposal oftrading stock for such purposes.

(b) References in paragraph (a) to 30the sale, transfer or disposal ofa relevant emissions allowanceshall include references to thesale, transfer or disposal of anyinterest or rights in or over such 35an allowance.

(c) Paragraph (a) shall not apply toa surrender and cancellation ofan emissions allowance inaccordance with Article 12 of 40the Directive.

(d) Paragraph (a)(ii) shall not applyto any sale, transfer or disposalof a relevant emissions allow-ance where, at any time before 45that event, the relevant emis-sions allowance was transferredfrom one company to anothercompany in circumstanceswhere the transfer was not 50made under, or as part of, a rel-evant scheme.

(3) For the purposes of the computationunder this Part of any gain accruing to arelevant person or a company, as the case 55

118

may be, on a disposal referred to in subsec-tion (2)—

(a) no sum shall, notwithstandingsection 547 or 552, be allowedas a deduction from the con-5sideration for the disposal apartfrom incidental costs to the per-son or company making the dis-posal, and

(b) emissions allowances other than10relevant emissions allowancesshall be deemed to have beendisposed of before relevantemissions allowances are dis-posed of by the person or15company.

(4) Section 596 shall not apply where arelevant emissions allowance acquired by aperson is appropriated as trading stock ofthe trade carried on by the person.”.20

(2) Subsection (1)(b) applies to disposals, referred to in section540A (inserted by subsection (1)(b)) of the Principal Act, made onor after 8 February 2012.

Chapter 5

Corporation Tax25

45.—Section 486C of the Principal Act is amended in subsection(2)(a) by substituting “at any time in the period beginning on 1January 2009 and ending on 31 December 2014” for “2009, 2010or 2011”.

46.—(1) Schedule 4 to the Principal Act is amended—30

(a) by inserting the following after paragraph 39:

“39A. The Food Safety Authority of Ireland.”,

and

(b) by inserting the following after paragraph 92:

“92A. The Sustainable Energy Authority of Ireland.”.35

(2) (a) Subsection (1)(a) is deemed to have come into force andhave taken effect as on and from 1 January 1999.

(b) Subsection (1)(b) is deemed to have come into force andhave taken effect as on and from 1 May 2002.

119

Amendment ofsection 486C (relieffrom tax for certainstart-up companies)of Principal Act.

Amendment ofSchedule 4(exemption ofspecified non-commercial state-sponsored bodiesfrom certain taxprovisions) toPrincipal Act.

Amendment ofsection 411(surrender of reliefbetween membersof groups andconsortia) ofPrincipal Act.

47.—(1) Section 411 of the Principal Act is amended in subsec-tion (1)—

(a) in paragraph (a), in the definition of “relevant MemberState”, by substituting “made;” for “made.” in subpara-graph (ii), 5

(b) in paragraph (a) by inserting the following after the defini-tion of “relevant Member State”:

“ ‘relevant territory’ means—

(i) a relevant Member State,

(ii) not being such a Member State, a territory 10with the government of which arrange-ments having the force of law by virtue ofsection 826(1) have been made, or

(iii) not being a territory referred to in subpara-graph (i) or (ii), a territory with the 15government of which arrangements havebeen made which on completion of theprocedures set out in section 826(1) willhave the force of law;”,

and 20

(c) by substituting the following for paragraph (c):

“(c) In determining for the purposes of this sectionand the following sections of this Chapterwhether one company is a 75 per cent subsidi-ary of another company, the other company 25shall be treated as not being the owner of—

(i) any share capital which it owns directly ina company if a profit on a sale of theshares would be treated as a tradingreceipt of its trade, 30

(ii) any share capital which it owns indirectlyand which is owned directly by a companyfor which a profit on the sale of the shareswould be a trading receipt, or

(iii) any share capital which it owns directly in 35a company, not being a company—

(I) which by virtue of the law of a relevantterritory, is resident for the purposesof tax in such a relevant territory, or

(II) the principal class of shares of which 40or, where the company is a 75 percent subsidiary of another company,the principal class of shares of thatother company, is substantially andregularly traded on a stock exchange 45in the State, on one or more than onerecognised stock exchange in a rel-evant territory or territories or onsuch other stock exchange as may be

120

approved of by the Minister for Fin-ance for the purposes of Chapter 8Aof Part 6.

(d) References in this Chapter to a company whichis a surrendering company or a claimant com-5pany shall apply only to a company which, byvirtue of the law of a relevant Member State,is resident for the purposes of tax in such aMember State.”.

(2) (a) This section applies as respects accounting periods ending10on or after 1 January 2012.

(b) This section shall not have effect in relation to the deter-mination of the amount of loss or other amount availablefor surrender under section 411(2) of the Principal Actavailable for surrender for an accounting period begin-15ning before 1 January 2012 and ending after that date tothe extent that the loss or other amount is attributable tothe part of the accounting period falling before that date.

(c) Any apportionment necessary for the purposes of givingeffect to paragraph (b) shall be made in accordance with20section 4(6).

48.—(1) Section 835D of the Principal Act is amended in subsec-tion (1) in paragraph (b) of the definition of “transfer pricing guide-lines” by inserting “and 22 July 2010 and by the revision approvedby the OECD Council on 22 July 2010” after “16 July 2009”.25

(2) This section applies as on and from the date of the passing ofthis Act.

49.—(1) Schedule 24 to the Principal Act is amended in paragraph9DB by inserting the following at the end of that paragraph:

“(4) Where as respects any relevant royalties received in an30accounting period by a company, any part of the foreign taxcannot, due to an insufficiency of income, be treated as reducingincome under paragraph 7(3)(c) or under section 77(6B), thenthe amount which cannot be so treated shall, for the purposesof this paragraph, be unrelieved foreign tax.35

(5) Where, as respects an accounting period, a company is inreceipt of royalties from persons not resident in the State andsuch royalties are taken into account in computing the tradingincome of a trade carried on by the company, the companymay—40

(a) reduce the income (in this subparagraph referred toas ‘royalty income’) referable to any such paymentsby any unrelieved foreign tax, and

(b) allocate such reductions in such amounts and to suchof its royalty income for that accounting period as it45sees fit.

(6) The aggregate amount of reductions under subparagraph(5) in an accounting period cannot exceed the aggregate of the

121

Amendment ofsection 835D(principles forconstructing rules inaccordance withOECD guidelines)of Principal Act.

Amendment ofSchedule 24 (relieffrom income taxand corporation taxby means of creditin respect of foreigntax) to PrincipalAct.

Amendment ofsection 77(miscellaneousspecial rules forcomputation ofincome) of PrincipalAct.

Mergers where acompany isdissolved withoutgoing intoliquidation.

unrelieved foreign tax in respect of all relevant royalties for thataccounting period.”.

(2) This section applies as respects relevant royalties (within themeaning of paragraph 9DB(1)(a) of Schedule 24 to the PrincipalAct) received on or after 1 January 2012. 5

50.—(1) Section 77 of the Principal Act is amended by insertingthe following after subsection (6):

“(6A) (a) In this subsection—

‘amount of the income referable to the relevantinterest’ shall be construed in accordance with para- 10graph 9D(1)(b)(ii) of Schedule 24;

‘relevant foreign tax’ and ‘relevant interest’ have thesame meanings, respectively, as in paragraph 9D(1)(a)of Schedule 24.

(b) Where, as respects an accounting period of a com- 15pany, the trading income of a trade carried on by thecompany includes an amount of relevant interest, theamount of the income referable to the relevantinterest shall be treated as reduced (where such adeduction cannot be made under, and is not forbid- 20den by, any provision of the Income Tax Actsapplied by the Corporation Tax Acts) by the rel-evant foreign tax in relation to the relevant interest.

(6B) (a) In this subsection—

‘amount of the income referable to the relevant roy- 25alties’ shall be construed in accordance with para-graph 9DB(1)(b)(ii) of Schedule 24;

‘relevant foreign tax’ and ‘relevant royalties’ have thesame meanings, respectively, as in paragraph9DB(1)(a) of Schedule 24. 30

(b) Where, as respects an accounting period of a com-pany, the trading income of a trade carried on by thecompany includes an amount of relevant royalties,the amount of the income referable to the relevantroyalties shall be treated as reduced (where such a 35deduction cannot be made under, and is not forbid-den by, any provision of the Income Tax Actsapplied by the Corporation Tax Acts) by the rel-evant foreign tax in relation to the relevantroyalties.”. 40

(2) This section applies as respects accounting periods ending onor after 1 January 2012.

51.—(1) The Principal Act is amended by inserting the followingafter section 633C—

“633D.—The transfer of all the assets and liabilities of a com- 45pany which is a wholly owned subsidiary of another company (inthis section referred to as the ‘parent company’) to the parentcompany, on that subsidiary company being dissolved without

122

going into liquidation, shall not be treated as involving a disposalby the parent company of the share capital which it held in thesubsidiary company immediately before the dissolution.”.

(2) Subsection (1) shall have effect in respect of assets and liabilit-ies transferred on or after 1 January 2012.5

52.—(1) The Principal Act is amended in Schedule 24—

(a) in paragraph 4(5)(a) by substituting “paragraphs 9D, 9DBand 9DC” for “paragraphs 9D and 9DB”,

(b) in paragraph 4(5)(b) by deleting “and” where it last occursin subclause (iv), by inserting “and” after “that10paragraph),” in subclause (v) and by inserting the follow-ing after subclause (v):

“(vi) the amount of income of a company treatedfor the purposes of paragraph 9DC as ref-erable to an amount of relevant leasing15income (within the meaning of thatparagraph),”,

and

(c) by inserting the following after paragraph 9DB:

“Unilateral Relief (leasing income)20

9DC. (1) (a) In this paragraph—

‘leasing income’ means payments ofany kind as consideration for the useof, or the right to use, industrial, com-mercial or scientific equipment;25

‘relevant foreign tax’, in relation toleasing income receivable by a com-pany, means tax—

(i) which under the laws of anyforeign territory has been30deducted from the amount of thelease payment,

(ii) which corresponds to income taxor corporation tax,

(iii) which has not been repaid to the35company,

(iv) for which credit is not allowableunder arrangements, and

(v) which, apart from this paragraph,is not treated under this Schedule40as reducing the amount ofincome;

‘relevant leasing income’ means leas-ing income receivable by a company—

123

Unilateral relief(leasing income).

(i) which falls to be taken intoaccount in computing the tradingincome of a trade carried on bythe company, and

(ii) from which relevant foreign tax is 5deducted.

(b) For the purposes of this paragraph—

(i) the amount of corporation taxwhich apart from this paragraphwould be payable by a company 10for an accounting period andwhich is attributable to anamount of relevant leasingincome shall be an amount equalto 12.5 per cent of the amount by 15which the amount of the incomeof the company referable to theamount of the relevant leasingincome exceeds the relevantforeign tax, and 20

(ii) the amount of any income of acompany referable to an amountof relevant leasing income in anaccounting period shall, subjectto paragraph 4(5), be taken to be 25such sum as bears to the totalamount of the trading income ofthe company for the accountingperiod before deducting any rel-evant foreign tax the same pro- 30portion as the amount of relevantleasing income in the accountingperiod bears to the total amountreceivable by the company in thecourse of the trade in the 35accounting period.

(2) Where, as respects an accounting period ofa company, the trading income of a tradecarried on by the company includes anamount of relevant leasing income, the 40amount of corporation tax which, apartfrom this paragraph, would be payable bythe company for the accounting periodshall be reduced by so much of 87.5 percent of any relevant foreign tax borne by 45the company in respect of relevant leasingincome in that period as does not exceedthe corporation tax which would be sopayable and which is attributable to theamount of the relevant leasing income.”. 50

(2) This section applies in respect of leasing income (within themeaning of paragraph 9DC(1)(a) (inserted by subsection (1)) ofSchedule 24 to the Principal Act) received on or after 1 January 2012.

124

53.—(1) Section 21B of the Principal Act is amended in subsec-tion (1)(a) by substituting the following for the definition of “relev-ant territory”:

“ ‘relevant territory’ means—

(i) a Member State of the European Communities,5

(ii) not being such a Member State, a territory withthe government of which arrangements havingthe force of law by virtue of section 826(1) havebeen made,

(iii) not being a territory referred to in subparagraph10(i) or (ii), a territory with the government ofwhich arrangements have been made which oncompletion of the procedures set out in section826(1) will have the force of law, or

(iv) not being a territory referred to in subparagraph15(i), (ii) or (iii), a territory the government ofwhich has ratified the Convention referred to insection 826(1C);”.

(2) This section shall apply to dividends received on or after 1January 2012.20

54.—Consequential on the expiration of the scheme of relief forcertain manufacturing companies under Part 14 of the Principal Act,the provisions of that Act referred to in Schedule 1 are amended asprovided for in that Schedule.

Chapter 625

Capital Gains Tax


(a) in section 28(3) by substituting “30 per cent” for “25 percent”, and

(b) in section 649A(1) by substituting the following for para-30graph (b):

“(b) in the case of a relevant disposal made on orafter 7 December 2011, 30 per cent.”.

(2) This section applies to disposals made on or after 7December 2011.35

56.—(1) Section 533 of the Principal Act is amended—

(a) by inserting the following after paragraph (d):

“(da) subject to paragraph (d), shares in, or securitiesof, a company incorporated in the State shallbe situated in the State and, for the purposes40of this paragraph, ‘shares’ includes warrants inrespect of shares (including share warrants

125

Amendment ofsection 21B (taxtreatment of certaindividends) ofPrincipal Act.

Consequentialamendments toPrincipal Act onexpiration ofscheme of relief forcertainmanufacturingcompanies.

Capital gains: rateof charge.

Amendment ofsection 533(location of assets)of Principal Act.

Amendment ofsection 562(contingentliabilities) ofPrincipal Act.

Certain sharetransactions withinvestmentundertakings.

(within the meaning of section 88 of the Com-panies Act 1963)) and any other instrument orsecurity the value of which is derived from, orcalculated by reference to, shares;”,

and 5

(b) in paragraph (e) by substituting “subject to paragraphs (d)and (da)” for “subject to paragraph (d)”.


57.—(1) Section 562 of the Principal Act is amended by insertingthe following after subsection (2): 10

“(2A) No adjustment shall be made in accordance with sub-section (2) unless it is shown to the satisfaction of the inspectorthat the assignor, vendor, lessor or grantor of an option, as thecase may be, has paid an amount equal to the amount of thecontingent liability in respect of that liability.”. 15

(2) This section applies to disposals made on or after 8 February2012.


(a) in section 584(3) by substituting “(10)” for “(9)”,

(b) in section 584 by inserting the following after subsection 20(9):

“(10) (a) In this subsection, ‘investment undertaking’ and‘unit’ have the same meanings respectively asin section 739B.

(b) Subsection (3) shall not apply where the new 25holding comprises units in an investmentundertaking, being a company.”,

(c) in section 585(1) by inserting the following definitionsbefore the definition of “security”:

“ ‘investment undertaking’ and ‘unit’ have the same mean- 30ings respectively as in section 739B;”,

(d) in section 585 by inserting the following after subsection(1):

“(1A) For the purposes of this section, a conversion ofsecurities shall not include a conversion of securities into 35units in an investment undertaking, being a company.”,

(e) in section 586(3) by inserting the following after para-graph (c):

“(d) This section shall not apply where the companyissuing the shares or debentures is an invest- 40ment undertaking within the meaning ofsection 739B.”,

and

126

(f) in section 587(4) by inserting the following after para-graph (c):

“(d) This section shall not apply where the companyissuing the shares or debentures is an invest-ment undertaking within the meaning of5section 739B.”.

(2) This section applies to any shares or debentures issued by acompany on or after 22 February 2012.

59.—Section 598 of the Principal Act is amended by substitutingthe following for subsection (2):10

“(2) (a) Subject to this section, where an individual who hasattained the age of 55 years but has not attained theage of 66 years disposes of the whole or part of hisor her qualifying assets, then—

(i) if the amount or value of the consideration for15the disposal does not exceed €750,000, reliefshall be given in respect of the full amount ofcapital gains tax chargeable on any gain accru-ing on the disposal;

(ii) if the amount or value of the consideration for20the disposal exceeds €750,000, the amount ofcapital gains tax chargeable on the gain accruingon the disposal shall not exceed 50 per cent ofthe difference between the amount of that con-sideration and €750,000.25

(b) Subject to this section, where an individual who hasattained the age of 66 years disposes of the whole orpart of his or her qualifying assets on or before 31December 2013, then—


(ii) if the amount or value of the consideration for35the disposal exceeds €750,000, the amount ofcapital gains tax chargeable on the gain accruingon the disposal shall not exceed 50 per cent ofthe difference between the amount of that con-sideration and €750,000.40

(c) Subject to this section, where an individual who hasattained the age of 66 years disposes of the whole orpart of his or her qualifying assets on or after 1January 2014, then—


127

Amendment ofsection 598(disposals ofbusiness or farm on“retirement”) ofPrincipal Act.

Amendment ofsection 599(disposals withinfamily of businessor farm) ofPrincipal Act.

Amendment ofsection 611(disposals to State,public bodies andcharities) ofPrincipal Act.

Amendment ofsection 613(miscellaneousexemptions forcertain kinds ofproperty) ofPrincipal Act.

(ii) if the amount or value of the consideration forthe disposal exceeds €500,000, the amount ofcapital gains tax chargeable on the gain accruingon the disposal shall not exceed 50 per cent ofthe difference between the amount of that con- 5sideration and €500,000.

(d) For the purposes of paragraphs (a), (b) and (c), theamount of capital gains tax chargeable in respect ofthe gain shall be the amount of tax which would nothave been chargeable but for that gain.”. 10

60.—Section 599(1) of the Principal Act is amended by substitutingthe following for paragraph (b):

“(b) Subject to this section—

(i) where an individual who has attained the age of55 years but has not attained the age of 66 years 15disposes of the whole or part of his or her quali-fying assets to his or her child, relief shall begiven in respect of the capital gains tax charge-able on any gain accruing on the disposal;

(ii) where an individual who has attained the age of 2066 years disposes of the whole or part of his orher qualifying assets to his or her child on orbefore 31 December 2013, relief shall be givenin respect of the capital gains tax chargeable onany gain accruing on the disposal; 25

(iii) where an individual who has attained the age of66 years disposes of the whole or part of his orher qualifying assets to his or her child on orafter 1 January 2014 and the market value ofthe qualifying assets is greater than €3,000,000, 30relief shall be given in respect of the capitalgains tax chargeable on any gain accruing on thedisposal as if the consideration for the disposalhad been €3,000,000.”.

61.—(1) Section 611(1)(a) of the Principal Act is amended in sub- 35paragraph (iii) by inserting “the Local Government ComputerServices Board, the Local Government Management Services Board,the Affordable Homes Partnership, Irish Water Safety, LimerickNorthside Regeneration Agency, Limerick Southside RegenerationAgency,” after “the Friends of the National Collections of Ireland,”. 40

(2) This section applies to disposals made on or after 8 February2012.

62.—Section 613 of the Principal Act is amended by inserting thefollowing after subsection (6):

“(7) No chargeable gain shall arise on the receipt of an 45amount of compensation whether in money or money’s worthunder the Cessation of Turf Cutting Compensation Schemeadministered by the Minister for Arts, Heritage and the Gael-tacht relating to the cessation of turf cutting on raised bogSpecial Areas of Conservation or Natural Heritage Areas, as 50

128

required under the European Communities (Birds and NaturalHabitats) Regulations 2011 (S.I. No. 477 of 2011) or the Wildlife(Amendment) Act 2000.”.

63.—(1) Schedule 15 to the Principal Act is amended—

(a) by substituting the following for paragraph 9:5

“9. Teagasc — The Agriculture and Food Develop-ment Authority.”,

and

(b) by inserting the following after paragraph 31:

“31A. The Dublin Institute of Technology in respect of10any disposal made by it to the GrangegormanDevelopment Agency.

31B. The Grangegorman Development Agency.”.

(2) This section applies to disposals made on or after 8 February2012.15

64.—The Principal Act is amended by inserting the followingsection after section 604:

“604A.—(1) In this section—

‘EEA Agreement’ means the Agreement on the EuropeanEconomic Area signed at Oporto on 2 May 1992, as adjusted by20the Protocol signed in Brussels on 17 March 1993;

‘EEA State’ means a state which is a contracting party to theEEA Agreement.

(2) This section applies to land or buildings situated in anyEEA State (including the State)—25

(a) which—

(i) were acquired for a consideration equal to theirmarket value in the period commencing on 7December 2011 and ending on 31 December2013, or30

(ii) were acquired in the period referred to in subpar-agraph (i) from a relative (within the meaningof section 10) and the consideration was not lessthan 75 per cent of their market value at thedate they were acquired,35

and

(b) which continue in the ownership of the person whoacquired that land or those buildings for a period ofat least 7 years from the date they were acquired.

(3) On a disposal of land or buildings to which this section40applies, such portion of the gain shall not be a chargeable gain

129

Amendment ofSchedule 15 (list ofbodies for purposesof section 610) toPrincipal Act.

Relief for certaindisposals of land orbuildings.

Exclusion of foreigncurrency as asset ofcertain companies.

as represents the same proportion of the gain as 7 years bearsto the period of ownership of such land or buildings.

(4) Relief under subsection (3) shall not apply—

(a) to land or buildings to which this section appliesunless any income or profits or gains derived from 5the land or buildings concerned in the period of 7years from the date they were acquired by the personwho acquired them is income or profits or gains towhich the Income Tax Acts or the Corporation TaxActs apply, or 10

(b) where arrangements (within the meaning of section546A) have been put in place and it can be shownthat relief (apart from the relief given under subsec-tion (3)) would be less if the arrangements had notbeen put in place.”. 15

65.—(1) The Principal Act is amended by inserting the followingsection after section 79B:

“79C.—(1) In this section—

‘approved accounting standards’ means standards which are inaccordance with generally accepted accounting principles in the 20State or in accordance with International Financial ReportingStandards (as promulgated by the International AccountingStandards Board);

‘net foreign exchange gain’ means the excess of foreignexchange gains over foreign exchange losses arising on the dis- 25posal of currency in a relevant bank deposit by a relevant hold-ing company, but does not include such gains and losses whichare chargeable to corporation tax under Case I of Schedule D;

‘net foreign exchange loss’ means the excess of foreign exchangelosses over foreign exchange gains arising on the disposal of cur- 30rency in a relevant bank deposit by a relevant holding company,but does not include such gains and losses which are chargeableto corporation tax under Case I of Schedule D;

‘profit and loss account’ has the same meaning as in section 81C;

‘relevant bank deposit’ means a sum standing to the credit of a 35relevant holding company in a bank and which is not Irishcurrency;

‘relevant holding company’ means a company—

(a) with at least one wholly-owned subsidiary and thatsubsidiary derives the greater part of its income from 40trading activities, or

(b) which acquires or sets up, within one year of a netforeign exchange gain being credited to its accounts,a wholly-owned subsidiary which derives the greaterpart of its income from trading activities. 45

(2) Currency in a relevant bank deposit shall not be an assetto which section 532 applies.

130

(3) An amount determined by the formula—

A × 65

where A is the net foreign exchange gain which is credited inthe profit and loss account of a relevant holding company, as5reduced by so much of any loss under section 383 as is attribu-table to a net foreign exchange loss and which has not beendeducted from any other amount of income, shall be incomechargeable under Case IV of Schedule D.

(4) This section shall not apply unless the accounts are drawn10up in accordance with approved accounting standards.

(5) An allowable loss under section 546 which is unused atthe date this section comes into effect and which has arisen, orwould have arisen, on the disposal of currency in a relevant bankdeposit of a relevant holding company may be treated as an15unused loss, at the same date, under section 383.

(6) An allowable loss under section 546 to which subsection(5) applies may qualify for relief under section 383 or 546, butmay not qualify for relief under both those provisions.”.

(2) This section applies as respects accounting periods ending on20or after 1 January 2012.


(a) in subsection (1) by deleting “domiciled and” in eachplace,

(b) in subsection (2) by substituting the following for subsec-25tion paragraph (b):

“(b) Notwithstanding paragraph (a), where a ben-eficiary under the settlement was neither resi-dent nor ordinarily resident in the State in ayear of assessment during which a gain accrued30to the trustees, but was so resident or ordi-narily resident in an earlier and subsequentyear of assessment, the gain which would haveaccrued to that beneficiary if paragraph (a) hadapplied shall be treated as accruing in the first35year of assessment in which he or she sub-sequently becomes resident or ordinarily resi-dent in the State.

(c) Notwithstanding paragraph (a), where a personwas excluded as a beneficiary under the settle-40ment for a period of time but was subsequentlyincluded as a beneficiary of that settlement anda gain accrued to the trustees during a year ofassessment when that beneficiary was soexcluded, a gain which would have accrued to45the beneficiary if paragraph (a) had appliedshall be treated as accruing in the first year ofassessment in which that person was sub-sequently included as a beneficiary of thesettlement concerned.50

131

Amendment ofsection 579 (non-resident trusts) ofPrincipal Act.

Exemption forproceeds of disposalby sports bodies.

(d) Notwithstanding paragraph (a), if a beneficiaryis not treated under the provisions of para-graph (a), (b) or (c) as if any apportioned partof a gain accrued to him or her in a year ofassessment and— 5

(i) the trustees have earlier realised a charge-able gain, and

(ii) the beneficiary receives a capital payment(within the meaning of section 579A(1))from the trust during a year of assessment 10in which he or she is either resident orordinarily resident in the State,

then, the beneficiary shall be treated as if anamount equal to—

(I) the capital payment, or 15

(II) the apportioned gain which would haveaccrued to him or her if paragraphs (a),(b) or (c) had applied,

whichever is less, were a chargeable gain accru-ing to him or her in the year of assessment in 20which the capital payment is received.

(e) For the purposes of this section, any amountreferred to in paragraph (a), (b) or (c) shallbe apportioned in such manner as is just andreasonable between persons having interests in 25the settled property, whether the interest is alife interest or an interest in reversion, and sothat the chargeable gain is apportioned as nearas may be according to the respective valuesof those interests, disregarding in the case of a 30defeasible interest the possibility ofdefeasance.”,

and

(c) in subsection (3) by deleting paragraph (b).

(2) This section applies to disposals made on or after 8 February 352012.


(a) by inserting the following section after section 610:

“610A.—(1) Subject to subsection (2), a gain shall notbe a chargeable gain if it accrues to an approved body to 40the extent that the proceeds of the disposal giving rise tothe gain or, if greater, the consideration for the disposalunder the Capital Gains Tax Acts have, within 5 years ofthe receipt of the proceeds of the disposal or the consider-ation, as the case may be, been applied for the sole pur- 45pose of promoting athletic or amateur games or sports.

(2) A gain shall not be a chargeable gain if it accruesto an approved body to the extent that the proceeds of the

132

disposal (or part thereof) giving rise to the gain or, ifgreater, the consideration for the disposal (or part thereof)have, within 5 years of the receipt of the proceeds of thedisposal or the consideration, as the case may be, beendonated for charitable purposes to a person or body of5persons and—

(a) application has been made to the Minister forFinance specifying the person or body of per-sons to which the approved body proposes tomake a donation and he or she has approved10the making of the donation to the person orbody of persons specified in the application,

(b) the donation is evidenced by a deed which stipu-lates that the donation is applicable and mustbe applied for the purposes of the charity15only, and

(c) neither the donor nor a person connected to thedonor receives a benefit in consequence ofmaking the donation, either directly orindirectly.20

(3) The Minister for Finance may refuse to approve thedonation to the person or body of persons referred to insubsection (2) if he or she believes that the public goodwould not be served if the donation were made.

(4) The Revenue Commissioners may allow an exten-25sion of the period of 5 years referred to in subsection (1)for the application of proceeds for sporting purposes ifthey are satisfied that an approved body is in the processof applying proceeds for that purpose.

(5) The Revenue Commissioners may allow an exten-30sion of the period of 5 years referred to in subsection (2)for the making of a donation for charitable purposes ifthey are satisfied that an approved body is in the processof making such a donation.

(6) In this section ‘approved body’ means an approved35body of persons within the meaning of section 235(1).”,

and

(b) in Schedule 15 by deleting paragraph 37.

(2) Subsections (2), (3) and (5) of section 610A (inserted by sub-section (1)) of the Principal Act shall be deemed to have had effect40in respect of disposals on or after 1 January 2005.

PART 2

Excise

68.—(1) The Finance Act 1999 is amended with effect as on andfrom 7 December 2011—45

(a) by substituting the following for Schedule 2 (as amendedby section 42 of the Finance Act 2011):

133

Mineral oil tax:carbon charge.

“SCHEDULE 2

Rates of Mineral Oil Tax

(With effect as on and from 7 December 2011)

Description of Mineral Oil Rate of Tax

Light Oil: 5

Petrol €587.71 per 1,000 litres

Aviation gasoline €587.71 per 1,000 litres

Heavy Oil:

Used as a propellant €479.02 per 1,000 litres

Used for air navigation 10€479.02 per 1,000 litres

Used for private pleasure navigation €479.02 per 1,000 litres

Kerosene used other than as a €38.02 per 1,000 litrespropellant

Fuel oil €60.73 per 1,000 litres

Other heavy oil 15€88.66 per 1,000 litres

Liquefied Petroleum Gas:


Other liquefied petroleum gas €24.64 per 1,000 litres

Coal:

For business use 20€4.18 per tonne

For other use €8.36 per tonne

”,

and

(b) by substituting the following for Schedule 2A (as amendedby section 64(1)(e) of the Finance Act 2010): 25

“SCHEDULE 2A

Carbon Charge

(With effect as on and from 7 December 2011)

Description of Mineral Oil Rate

Light Oil: 30



Heavy Oil:






134


Other heavy oil €41.30 per 1,000 litres




”.5

(2) The Finance Act 1999 is further amended with effect as onand from 1 May 2012—

(a) by substituting the following for Schedule 2 (as amendedby subsection (1)(a)):

“SCHEDULE 210

Rates of Mineral Oil Tax

(With effect as on and from 1 May 2012)

Description of Mineral Oil Rate of Tax

Light Oil:

Petrol15 €587.71 per 1,000 litres


Heavy Oil:


Used for air navigation €479.02 per 1,000 litres

Used for private pleasure navigation20 €479.02 per 1,000 litres



Other heavy oil €102.28 per 1,000 litres

Liquefied Petroleum Gas:25



Coal:

For business use €4.18 per tonne

For other use30 €8.36 per tonne

”,

and

(b) by substituting the following for Schedule 2A (as amendedby subsection (1)(b)):

135

Rates of tobaccoproducts tax.

“SCHEDULE 2A

Carbon Charge

(With effect as on and from 1 May 2012)


Light Oil: 5



Heavy Oil:






Other heavy oil 15€54.92 per 1,000 litres




”.

(3) Chapter 1 of Part 2 of the Finance Act 1999 is amended (with 20effect as on and from 7 December 2011) in section 96(1B) (insertedby section 64(1)(f) of the Finance Act 2010) by substituting “A is theamount to be charged per tonne of CO2 emitted, being €20 in thecase of petrol, aviation gasoline and heavy oil used as a propellantor for air navigation or for private pleasure navigation, and €15 in 25the case of each other description of mineral oil in Schedule 2A” for“A is the amount, €15, to be charged per tonne of CO2 emitted”.

(4) Chapter 1 of Part 2 of the Finance Act 1999 is furtheramended with effect as on and from 1 May 2012—

(a) in section 96(1B) (as amended by subsection (3)) by substi- 30tuting “A is the amount, €20, to be charged per tonne ofCO2 emitted” for “A is the amount to be charged pertonne of CO2 emitted, being €20 in the case of petrol,aviation gasoline and heavy oil used as a propellant orfor air navigation or for private pleasure navigation, and 35€15 in the case of each other description of mineral oil inSchedule 2A”, and

(b) in section 98(1) (as amended by section 64(1)(h) of theFinance Act 2010) by substituting “€56.31” for “€43.60”and “€38.44” for “€30.22”. 40

69.—(1) The Finance Act 2005 is amended with effect as on andfrom 7 December 2011 by substituting the following for Schedule 2to that Act (as amended by section 16 of the Finance Act 2009):

136

“SCHEDULE 2

Rates of Tobacco Products Tax(With effect as on and from 7 December 2011)

Description of Product Rate of Tax

Cigarettes................................................................5 Rate of tax at€192.44 perthousand togetherwith an amountequal to 18.03 percent of the price at10which the cigarettesare sold by retail.

Cigars ...................................................................... Rate of tax at€271.337 perkilogram.15

Fine-cut tobacco for the rolling of cigarettes ... Rate of tax at€228.968 perkilogram.

Other smoking tobacco ........................................ Rate of tax at€188.243 per20kilogram.

”.

(2) The Finance Act 2005 is further amended with effect as onand from 1 May 2012 by substituting the following for Schedule 2 tothat Act (as amended by subsection (1)):25

“SCHEDULE 2

Rates of Tobacco Products Tax(With effect as on and from 1 May 2012)


Cigarettes................................................................30 Rate of tax at—

(a) except whereparagraph (b)applies, €233.11per thousandtogether with an35amount equal to9.04 per cent ofthe price atwhich the ciga-rettes are sold by40retail, or

(b) €268.14 perthousand inrespect of ciga-rettes sold by45retail where therate of tax wouldbe less than thatrate had the ratebeen calculated50in accordancewith paragraph(a).

Cigars ...................................................................... Rate of tax at€271.337 per55kilogram.

137

Amendment ofChapter 1(interpretation,liability andpayment) of Part 2of Finance Act2001.


Fine-cut tobacco for the rolling of cigarettes ... Rate of tax at€228.968 perkilogram.

Other smoking tobacco ........................................ Rate of tax at€188.243 per 5kilogram.

”.

70.—Chapter 1 of Part 2 of the Finance Act 2001 is amended—

(a) in section 96(1) by deleting the definitions of “accompany-ing administrative document”, “free warehouse” and 10“free zone”,

(b) in section 96(1) by substituting the following for the defini-tion of “tax representative”:

“ ‘tax representative’ means a person approved by theCommissioners under section 109U for the purposes of 15that section;”,

(c) in section 96(1) by inserting the following definition:

“ ‘transaction’ means any action giving rise to a liabilityto, or a relief from, any duty of excise;”,

(d) in section 96(1) by substituting the following for the defini- 20tion of “vehicle”:

“ ‘vehicle’ means a mechanically propelled vehicle or anyother conveyance and includes—

(a) any craft or aircraft, and

(b) any container, trailer, tank or any other thing, 25which—

(i) is or may be used for the storage of goodsin the course of carriage, and

(ii) is designed or constructed to be placed on,in or attached to any such vehicle or 30other conveyance;”,

(e) by substituting the following for section 97:

“97.—For the purposes of this Part the following areexcisable products:

(a) alcohol products within the meaning of section 3573 of the Finance Act 2003,

(b) tobacco products within the meaning of section71 of the Finance Act 2005, and

(c) mineral oils within the meaning of section 94 ofthe Finance Act 1999.”, 40

(f) in section 98A(2) by substituting “that consignment is,except in the case of an irregular release, released for

138

consumption” for “that consignment is released for con-sumption”,

(g) in section 99 by substituting the following for subsections(2) and (3):

“(2) The liability under subsection (1)(b) is fully or5partly discharged where, and to the extent that, the con-signment concerned has been (as the case may be)—

(a) received, under a suspension arrangement, intoanother tax warehouse in the State, or

(b) ended in accordance with subsection (1) of10section 109K, and evidence to that effect hasbeen received in accordance with subsection(2) of that section.

(3) A registered consignor is liable for payment of theexcise duty on any consignment dispatched by such regis-15tered consignor under section 109E(1)(b), and that liabilityis fully or partly discharged where, and to the extent that,the consignment has ended in accordance with subsection(1) of section 109K, and evidence to that effect has beenreceived in accordance with subsection (2) of that20section.”,

(h) in section 99A by substituting the following for subsec-tion (1):

“(1) In this section ‘authorised officer’ means an officerauthorised in writing by the Commissioners to exercise the25powers conferred by this section.”,

(i) by inserting the following after section 99A:

“Estimation ofexcise dutydue.

99AA.—(1) Where a person who isrequired, by any provision of excise law, tomake a return of the excise duty payable by30such person for any period fails to do sowithin the time specified in the provisionconcerned, the Commissioners may, subjectto subsection (2)—

(a) estimate the amount of duty pay-35able by that person for suchperiod, and

(b) serve notice (in this sectionreferred to as a ‘notice ofestimation’) on the person of40the amount estimated.

(2) (a) Where the Commissioners aresatisfied that the amount of anyestimation is excessive ordeficient, or that there is no45liability for the period con-cerned, then they may accord-ingly reduce, increase or with-draw such estimation.

139

(b) In any case where an estimationis reduced or increased underparagraph (a), the Commis-sioners shall serve an amendednotice of estimation on the per- 5son concerned.

(3) If at any time after a notice of esti-mation or amended notice of estimation, asthe case may be, is served, the returnreferred to in subsection (1) is made, and 10excise duty is paid in accordance with thatreturn together with any interest and coststhat may have been incurred in connectionwith that payment, then the notice of esti-mation, or amended notice of estimation, 15shall stand discharged.

Time limits. 99AB.—(1) In this section ‘taxableperiod’ means a period in respect of whicha person is required, by any provision ofexcise law, to make a return of the excise 20duty payable by that person for that periodand to pay that amount.

(2) Subject to subsection (4), an assess-ment under section 99A or an estimationunder section 99AA may be made at any 25time not later than 4 years from—

(a) except where paragraph (b)applies, the date of the trans-action giving rise to the liabilityconcerned, 30

(b) where the liability is in respect ofa taxable period, the last day ofsuch period.

(3) Subject to subsection (4), pro-ceedings for the recovery of an amount of 35excise duty may not be instituted, or otheraction for such recovery taken, unless anotice of assessment, or another notifi-cation in writing stating that such amount isdue, has been issued by the Commissioners 40before the expiry of a period of 4 yearsfrom—

(a) except where paragraph (b)applies, the date of the trans-action giving rise to the liability 45to that amount,

(b) where the liability is in respect ofa taxable period, the last day ofsuch period.

(4) (a) Subsections (2) and (3) shall not 50apply in any case where thereare reasonable grounds tobelieve that any form of fraudor neglect has been committed

140

by or on behalf of any person inconnection with the liabilityconcerned.

(b) For the purposes of paragraph(a), and subject to paragraph5(c), ‘neglect’ means negligenceor a failure to give any notice,information or record, or tomake any return, required to begiven or made under any pro-10vision of excise law, within suchtime limit as may be allowedunder the provision concerned.

(c) A person who fails, within thetime limit referred to in para-15graph (b), to satisfy any require-ment referred to in that para-graph shall be deemed not tohave neglected to do so wherethe person—20

(i) satisfies the requirementswithin such further time asthe Commissioners mayallow in any particularcase, or25

(ii) shows to the satisfaction ofthe Commissioners thatthere was sufficient excusefor such failure, and wheresuch person satisfies the30requirements as soon aspossible thereafter.”,

(j) by deleting section 100,

(k) in section 103(2)(a) by substituting “Where any amount ofexcise duty becomes payable” for “Without prejudice to35the provisions of section 74 of the Finance Act 2002 con-cerning betting duty, where any amount of excise dutybecomes payable”,

(l) in section 103 by inserting the following subsection:

“(3) Where an amount of excise duty has been repaid40to a person, and where all or part of that amount is thenfound not to be properly refundable under any provisionof excise law, simple interest shall be paid by the personon that amount or part of that amount at the rate of 0.0274per cent for each day from the date the repayment is made45to the date on which it was returned to the Commissionersor otherwise accounted for to their satisfaction.”,

(m) in section 104 by substituting the following for subsections(1), (2) and (3):

“(1) Subject to such conditions as the Commissioners50may prescribe or otherwise impose, a full relief from exciseduty shall be granted, by way of remission or repayment,

141

on any excisable products that are shown to the satis-faction of the Commissioners to be delivered—

(a) under diplomatic arrangements in the State,

(b) to international organisations recognised as suchby the State, and the members of such organis- 5ations based in the State, within the limits andunder the conditions laid down by inter-national conventions establishing such organis-ations or by other agreements,

(c) for consumption under any agreement entered 10into between the State and a country otherthan a Member State where such agreementalso provides for exemption from value-addedtax,

(d) for export or re-export from the State to a place 15outside the European Union, or

(e) to a tax-free shop at an airport for supply topassengers travelling to a destination outsideof the European Union.

(2) Subject to such conditions as the Commissioners 20may prescribe or otherwise impose, a full relief from exciseduty shall be granted on any alcohol products or tobaccoproducts released for consumption in another MemberState which—

(a) have been acquired by a private individual in 25such another Member State for his or her ownuse and not for commercial purposes, and

(b) are transported into the State by that privateindividual, and accompanied by him or herduring such transportation. 30

(3) For the purpose of subsection (2) the question ofwhether the alcohol products or tobacco products, as thecase may be, are for a private individual’s own use or arefor commercial purposes shall be determined in accord-ance with regulations under section 153.”, 35

(n) in section 104 by inserting the following subsection:

“(5) Subject to such conditions as the Commissionersmay prescribe or otherwise impose, a full relief from exciseduty shall be granted, by way of repayment, on any excis-able products that have been released for consumption in 40the State and which—

(a) have been dispatched to another Member Statein accordance with section 109V, or

(b) have been sold and dispatched by a State vendorto a private individual in another Member 45State in accordance with section 109W.”,

(o) by deleting section 105,

(p) by deleting section 105A,

142

(q) by substituting the following for section 105B:

“105B.—(1) Subject to subsections (2) and (3), andwithout prejudice to the provisions of section 960H of theTaxes Consolidation Act 1997 relating to the offset ofoverpayments, where a person has, in respect of any5period or transaction, paid an amount of excise duty, orinterest on excise duty, which was not due, the Commis-sioners shall repay such amount to such person.

(2) Subject to subsection (3), a repayment shall only bemade under subsection (1) where a claim for that repay-10ment, in writing or such other form as the Commissionersmay allow, is made to them within a period of 4 years fromthe date of payment to which the claim relates or from thedate of any other transaction giving rise to an entitlementto a repayment.15

(3) Subsection (2) does not apply where a personwould, on due claim, be entitled to repayment of exciseduty or interest paid on that duty under any other pro-vision of excise law which provides for a shorter periodwithin which a claim for repayment is to be made.20

(4) Except as provided for by this section or by anyother provision of excise law, or by section 941 of theTaxes Consolidation Act 1997 as it applies for the pur-poses of the duties of excise, the Commissioners shall notrepay an amount of excise duty paid to them or pay25interest in respect of an amount of excise duty paid tothem.”,

(r) by deleting section 105C,

(s) in section 105D(1) by deleting the definition of “validclaim”,30

(t) in section 108A(2) by substituting the following for para-graph (c):

“(c) the mixing or blending of excisable productswith other excisable products or othermaterials, but only where—35

(i) excise duty has been paid in full on theexcisable products so mixed or blended,and

(ii) the amount so paid is not less than theamount chargeable on the mixture or40blend,

(d) the production by a private individual of wine,beer or other fermented beverage to which arelief from alcohol products tax under section77(f) of the Finance Act 2003 applies.”,45

and

(u) in section 109(7) by substituting the following for para-graph (b):

143

Amendment ofChapter 2A (intra-European Unionmovement under asuspensionarrangement) ofPart 2 of FinanceAct 2001.

“(b) (i) Without prejudice to paragraph (a), andsubject to subparagraph (ii), a tenant shall,at a level specified in the authorisationdocument, provide security for any excis-able products received by such tenant as 5a consignee under a suspensionarrangement.

(ii) Subparagraph (i) does not apply to consign-ments of mineral oil by sea that arereceived by a tenant and delivered 10immediately into storage tanks in the taxwarehouse that are under the direct con-trol of the proprietor.”.

71.—Chapter 2A of Part 2 of the Finance Act 2001 is amended—

(a) in section 109E by substituting the following for subsec- 15tion (3):

“(3) Except where, in accordance with section109I(1)(b), a consignment is accompanied by a paperdocument, a consignment from a place in the State toanother Member State shall be dispatched under the com- 20puterised system and under cover of the electronic admin-istrative document.”,

(b) in section 109H by inserting the following after subsec-tion (3):

“(3A) In the case of a consignment of mineral oil, the 25Commissioners may, subject to such conditions as theymay prescribe or otherwise impose, permit the consignorto split the consignment into 2 or more consignments—

(a) where the splitting is carried out—

(i) in the territory of a Member State that 30allows such splitting, and the MemberState has informed the European Com-mission accordingly under Article 23 ofthe Directive, and

(ii) under the computerised system in accord- 35ance with Article 6(1) of the CommissionRegulation, and the competent authorityof the Member State referred to in para-graph (a) is, by such means, informed ofthe place where such splitting is to take 40place,

and

(b) where the quantity consigned does not change.”,

(c) in section 109J(3)(a) by substituting “such conditions asthe Commissioners may prescribe or otherwise impose” 45for “such conditions as the Commissioners may pre-scribe”, and

(d) by deleting section 109P.

144


(a) in section 121 by substituting the following for paragraph(b):

“(b) to take possession or charge of any excisableproducts in the knowledge that an offence5under paragraph (a) has been committed inrelation to such excisable products.”,

(b) by substituting the following for section 122:

“122.—It is an offence under this section for any personto deliver any incorrect return, statement or accounts or10to furnish any incorrect information—

(a) in connection with—

(i) any claim for relief or repayment underexcise law,

(ii) the granting of a licence under section 10115of the Finance Act 1999, or

(iii) any application for—

(I) authorisation as an authorised ware-housekeeper, or approval of a taxwarehouse, under section 109,20

(II) authorisation as a registered consignorunder section 109A,

(III) registration as a registered consigneeunder section 109J, or

(IV) approval as a tax representative under25section 109U,

or

(b) for any other purposes in relation to any dutyof excise.”,

(c) in section 123 by deleting paragraph (a),30

(d) in section 131(1) by substituting “any question of fact” for“any dispute”,

(e) in section 131(1) by substituting “the burden of proof shallrest” for “the burden of proof in such dispute shallrest”, and35

(f) by deleting section 132.


(a) by substituting the following for section 133:

“133.—In this Chapter—

‘foreign packet’ means any item, addressed in the final40form in which it is to be carried from a place outside the

145

Amendment ofChapter 3 (offences,penalties andproceedings) of Part2 of Finance Act2001.

Amendment ofChapter 4 (powersof officers) of Part2 of Finance Act2001.

State and delivered to an address in the State, and includesa postal packet within the meaning of the CommunicationsRegulation (Postal Services) Act 2011;

‘postal services’ has the same meaning as in the Communi-cations Regulation (Postal Services) Act 2011; 5

‘officer’ means an officer of the Commissioners authorisedby them in writing to exercise the powers conferred onofficers by this Chapter.”,

(b) in section 135(1)(b) by substituting the following for sub-paragraph (ii): 10

“(ii) any excisable products being transported inor on, or in any manner attached to, thevehicle, are transported in accordancewith any provision of Chapter 2A or 2B towhich they may be subject, and conform 15in every material respect with the descrip-tion of such excisable products in any elec-tronic administrative document, simplifiedaccompanying document, or other docu-ment that is required, under any such pro- 20vision, for the consignment of the excis-able products concerned, or

(iii) the vehicle has been, or is required to be,registered in any of the registers estab-lished and maintained under Chapter IV 25of Part II of the Finance Act 1992,”,

(c) in section 135(1)(d) by substituting the following for sub-paragraph (iii):

“(iii) to produce to the officer or accompanyingofficer any document referred to in para- 30graph (b)(ii).”,

(d) in section 136(1)(b) by substituting “carried on,” for “car-ried on, or”,

(e) in section 136(1) by substituting the following for para-graphs (bb) and (c): 35

“(c) bets liable to betting duty are reasonablybelieved to be accepted,

(d) any activity for the provision of postal services,or any other service for the delivery of foreignpackets, is being, or is reasonably believed by 40the officer to be, carried on,

(e) any activity for the supply of electricity ornatural gas is being, or is reasonably believedby the officer to be, carried on, or

(f) any records relating to, or reasonably believed 45by the officer to relate to, the products oractivities referred to in paragraph (a), (b), (c)or (e) are kept, or are reasonably believed bysuch officer to be kept.”,

146

(f) in section 136(3) by substituting the following for para-graph (a):

“(a) carry out such search and investigation as suchofficer may consider to be proper, includingthe examination and the carrying out of5searches, under section 135, of any vehicle onsuch premises or in such place,”,

(g) in section 136(3)(c) by substituting “subsection (1)(f)” for“subsection (1)(c)”,

(h) in section 136(3)(d) by substituting “subsection (1)(f)” for10“subsection (1)(c)”,

(i) in section 136(3) by substituting the following for para-graph (e):

“(e) exercise the powers of detention under section140 and of seizure under section 141.”,15

(j) in section 136 by inserting the following after subsection(3):

“(3A) Where an authorised officer in or on any prem-ises or place, referred to in subsection (1)(d) or pursuantto a warrant issued under subsection (5), has reason to20believe that a foreign packet contains excisable products,and that any requirement—

(a) under excise law, for payment of the excise dutyon such products, or

(b) for any declaration under Council Regulation252913/92/EEC of 12 October 19926, CommissionRegulation 2454/93/EEC of 2 July 19937, orCouncil Regulation 450/2008/EC of 23 April20088, in relation to such foreign packet,

has not been complied with, then such officer may open30such foreign packet and examine its contents.”,

(k) by inserting the following after section 136:

“Power tostop, questionand search forintra-Communitybaggage.

136A.—An officer, on production of theauthorisation of such officer if required todo so by any person affected, may require35any person entering the State from anotherMember State to stop, and to give to suchofficer—

(a) the name, address and date ofbirth of such person,40

(b) any information in relation toany excisable products that maybe in the possession or chargeof such person,

6OJ No. L302, 19.10.1992, p.17OJ No. L253, 11.10.1993, p.18OJ No. L145, 04.06.2008, p.1

147

Amendment ofChapter 5(miscellaneous) ofPart 2 of FinanceAct 2001.

(c) such excisable products forexamination,

and, where such officer has reason tobelieve that such person is committing anoffence in relation to such excisable prod- 5ucts under section 119 or 121, such officermay search the baggage of such person andexamine any such excisable products.”,

and

(l) by deleting section 137. 10


(a) in section 144A by substituting the following for subsec-tion (2):

“(2) Any power, function or duty conferred or imposedon the Commissioners by any provision of section 108A, 15109, 109A, subsections (3) and (4) of section 109J or sub-section (2) of section 109U, may be exercised on theirbehalf and, subject to their direction and control, by anofficer authorised by them in writing for the purposes ofthe provision concerned.”, 20

(b) in section 145(3) by inserting the following after para-graph (e):

“(ee) a refusal to grant a licence under section 101 ofthe Finance Act 1999, or a revocation underthat section of any such licence that has been 25granted,”,

(c) in section 145 by deleting subsection (13),

(d) in section 153(2) by substituting “section 97” for “section97(1)”,

(e) in section 153(2)(e) by substituting “registered consignee” 30for “registered trader”,

(f) in section 153(2) by deleting paragraph (f),

(g) in section 153(2) by substituting the following for para-graph (h):

“(h) specifying in relation to the electronic adminis- 35trative document (within the meaning of Chap-ter 2A) and movements of excisable productsbetween Member States under a suspensionarrangement—

(i) the correct completion of that document 40and the person responsible for thatcompletion,

(ii) the submission of that document and thecancellation or amendment of that docu-ment after it is submitted, 45

148

(iii) the submission of a report of receipt orreport of export (both within the meaningof Chapter 2A),

(iv) the confirmation of receipt or export wherethe computerised system is unavailable,”,5

(h) in section 153(2) by deleting paragraph (i),

(i) in section 153(2)(j) by substituting “the simplifiedaccompanying document” for “such accompanyingdocument”,

(j) in section 153(2) by deleting paragraph (k),10

(k) in section 153(2)(l) by substituting “section 109J(7)” for“section 117”,

(l) in section 153(2)(t) by substituting “section 104(5)” for“section 105”, and

(m) in section 153(2)(t)(iv) by deleting “as provided for in15section 117,”.


(a) in section 73(1) by substituting the following for the defini-tion of “illicit alcohol product”:

“ ‘illicit alcohol product’ means any alcohol product—20

(a) that has, contrary to the requirements of section108A of the Finance Act 2001, been producedor processed in the State, otherwise than in atax warehouse, or

(b) that is counterfeit goods;”,25

(b) in section 75 by substituting the following for subsection(1):

“(1) Subject to the provisions of this Chapter and anyregulations made under it, a duty of excise, to be knownas alcohol products tax, shall be charged, levied and paid,30at the rates specified in Schedule 2, on all alcoholproducts—

(a) released for consumption in the State, or

(b) released for consumption in another MemberState and brought into the State.35

(1A) Subsection (1)(b) does not apply to any alcoholproducts that have been released for consumption inanother Member State and which are held on board a shipor aircraft making a sea crossing between another MemberState and the State, where such alcohol products are not40available for sale or supply while the ship or aircraft iswithin the territory of the State.”,

(c) in section 77(1) by inserting the following after para-graph (a):

149

Amendment ofChapter 1 (alcoholproducts tax) ofPart 2 of FinanceAct 2003.

Amendment ofChapter 3 (tobaccoproducts tax) ofPart 2 of FinanceAct 2005.

“(aa) to be delivered for shipment for use as stores onboard a ship or aircraft on a journey from aplace in the State to a place outside the State,”,

(d) in section 78(3) by substituting the following for para-graph (b): 5

“(b) Except where the Commissioners may, in anyparticular case, allow, a repayment claim shallbe made within 6 months following the end ofthe period referred to in paragraph (a).”,

(e) in section 79(1) by substituting “It is an offence under this 10subsection” for “Except where subsection (2), (3) or (5)applies, it is an offence under this subsection”,

(f) in section 79 by deleting subsections (3) and (4),

(g) in section 79(5) by substituting the following for para-graph (d): 15

“(d) to keep prohibited goods on any premises orother land or on any vehicle, or”,

and

(h) by deleting section 82.

76.—Chapter 3 of Part 2 of the Finance Act 2005 is amended— 20

(a) in section 71(1) by deleting the definition of “tax rep-resentative”,

(b) in section 71 by deleting subsections (2) and (4),

(c) by substituting the following for section 72:

“72.—(1) Subject to the provisions of this Chapter and 25any regulations made under it, a duty of excise, to beknown as tobacco products tax, shall be charged, leviedand paid, at the rates specified in Schedule 2, on all tob-acco products—

(a) released for consumption in the State, or 30

(b) released for consumption in another MemberState and brought into the State.

(2) Subsection (1)(b) does not apply to any tobaccoproducts that have been released for consumption inanother Member State and which are held on board a ship 35or aircraft making a sea crossing between another MemberState and the State, where such tobacco products are notavailable for sale or supply while the ship or aircraft iswithin the territory of the State.”,

(d) in section 75 by substituting the following for subsections 40(3) and (4):

“(3) Where a price does not for the time being standdeclared under subsection (2), the Commissioners may, inrelation to the cigarettes concerned, determine a price to

150

be taken, for the purposes of this Chapter, as the price atwhich such cigarettes are sold by retail.

(4) Where a price has been declared under subsection(2), or determined by the Commissioners under subsection(3), a manufacturer or importer of tobacco products shall5not recommend, expressly or by implication, that the ciga-rettes concerned are sold by retail at a price higher thanthe price so declared or determined.”,

(e) in section 76 by substituting the following for subsection(1):10

“(1) In this section ‘appropriate tax stamp’ means a taxstamp in respect of which an amount equivalent to the taxchargeable, on the pack of tobacco products to which thattax stamp is to be affixed, has been paid.

(1A) Subject to subsection (1B), all specified tobacco15products that are intended for sale, delivery or consump-tion in the State shall have an appropriate tax stampaffixed by the manufacturer to each pack in which thespecified tobacco products concerned are intended to beput up for retail sale.20

(1B) Subsection (1A) shall not apply to specified tob-acco products that—

(a) have been acquired by a private individual inanother Member State and are relieved fromexcise duty under section 104(2) of the Finance25Act 2001,

(b) are exempted from value-added tax and exciseduty under the European Communities (TaxExemption for Certain Non-CommercialGoods Imported in the Personal Luggage of30Travellers from Third Countries) Regulations2008 (S.I. No. 480 of 2008),

(c) are being held or delivered under a suspensionarrangement, or

(d) under section 73(2), are subject to the provisions35of this Chapter governing other tobaccoproducts.”,

(f) by substituting the following for section 77—

“Reliefs. 77.—(1) Subject to such conditions asthe Commissioners may prescribe or other-40wise impose, a relief from tobacco productstax shall be granted on any tobacco prod-ucts that are shown to the satisfaction ofthe Commissioners—

(a) to have been destroyed in45accordance with theirrequirements,

(b) to have been rendered unfit foruse as tobacco products, and

151

used for industrial or horticul-tural purposes,

(c) to have been returned to a taxwarehouse for remanufacture,

(d) to be intended for use, or to have 5been used, solely for scientifictests or for tests connected withproduct quality, or

(e) to be delivered for shipment foruse as stores on board a ship or 10aircraft on a journey from aplace in the State to a place out-side the State.

(2) Subject to such conditions as theymay prescribe or otherwise impose, the 15Commissioners shall repay any amountpaid, and remit any amount due, undersection 73(3), on the issue of tax stampsthat have been shown to the satisfaction ofthe Commissioners to have been— 20

(a) destroyed, damaged or otherwiserendered unsuitable for use astax stamps, or

(b) affixed to specified tobacco prod-ucts that have been the subject 25of an irregularity, within themeaning of Article 38 ofCouncil Directive No.2008/118/EC of 16 December20089, in another Member State, 30and where excise duty on suchproducts has been paid inanother Member State.

(3) (a) For the purposes of the reliefunder subsection (1)(c), except 35where paragraph (b) applies,the amount repayable shall bethe full amount of tax paidon the tobacco productsconcerned. 40

(b) For the purposes of the reliefunder subsection (1)(c), whereon the day the tobacco productsconcerned are returned to thetax warehouse, the rate of tax 45on any of those tobacco prod-ucts is lower than that at whichthe tax was paid, the amountrepayable in respect of thosetobacco products shall be calcu- 50lated at that lower rate.

(4) (a) Claims for repayment under sub-section (1) or (2) shall be made

9OJ No. L9, 14.1.2009, p.12

152

in such form as the Commis-sioners may direct and shall bein respect of qualifying events,giving rise to the relief con-cerned, occurring within a5period of 3 months.

(b) Except where the Commissionersmay, in any particular case,allow, a repayment claim shallbe made within 6 months fol-10lowing the end of the periodreferred to in paragraph (a).”,

(g) in section 78(1) by substituting “It is an offence under thissubsection” for “Except where subsection (4) or (5)applies, it is an offence under this subsection”,15

(h) in section 80(1) by substituting “The Commissioners” for“Subject to subsection (2), the Commissioners”,

(i) in section 80 by deleting subsection (2),

(j) by deleting section 82, and

(k) in section 83(1A) by substituting “Council Directive No.202011/64/EU of 21 June 201110” for “Council Directive No.92/79/EEC of 19 October 199211, Council Directive No.92/80/EEC of 19 October 199212 and Council DirectiveNo. 95/59/EC of 27 November 199513”.

77.—Chapter 1 of Part 2 of the Finance Act 2002 is amended by25deleting sections 72, 73, 73A, 74, 75, 75A and 76.

78.—(1) Chapter 1 of Part 2 of the Finance Act 1999 isamended—

(a) in section 94(1) by deleting the definitions of “businessuse”, “charitable organisation”, “dual use”, “energy30intensive business”, “horticultural produce”, “horticultu-ral producer”, “household”, “land”, “mineralogical pro-cess” and “ships’ stores”,

(b) in section 94(1) by substituting the following for the defini-tion of “ASTM”:35

“ ‘ASTM’ means ASTM International (formerly known asthe American Society for Testing and Materials);”,

(c) in section 94(1) by substituting the following for the defini-tion of “biofuel”:

“ ‘biofuel’ means any substitute fuel made from biomass;”,4010OJ No. L176, 5.7.2011, p.2411OJ No. L316, 31.10.1992, p.812OJ No. L316, 31.10.1992, p.1013OJ No. L291, 6.12.1996, p.40

153

Amendment ofChapter 1(consolidation andmodernisation ofbetting law) of Part2 of Finance Act2002.

Amendment ofChapter 1 (mineraloil tax) of Part 2 ofFinance Act 1999.

(d) in section 94(1) by substituting the following for the defini-tion of “coal”:

“ ‘coal’ includes coal and lignite, solid fuel manufacturedfrom coal and lignite, and any other energy product withinthe meaning of Article 2.1 of the Directive in solid form;”, 5

(e) in section 94(1) by substituting the following for the defini-tion of “dumper”:

“ ‘dumper’ means a vehicle described in paragraph 2(a) ofPart 1 of the Schedule to the Finance (ExciseDuties)(Vehicles) Act 1952;”, 10

(f) in section 94(1) by inserting the following after the defini-tion of “fuel oil”:

“ ‘gas oil’ means heavy oil of which not more than 50 percent by volume distils at a temperature not exceeding 240degrees Celsius and of which more than 50 per cent by 15volume distils at a temperature not exceeding 340degrees Celsius;”,

(g) in section 94(1) by substituting the following for the defini-tion of “marker”:

“ ‘marker’ means any substance that is required, under 20excise law or by another Member State, to be added tomineral oil for the purpose of identifying that mineral oilas being for use otherwise than as a propellant;”,

(h) in section 94(1) by substituting the following for the defini-tion of “mineral oil”: 25

“ ‘mineral oil’ means hydrocarbon oil, liquefied petroleumgas, substitute fuel and additives;”,

(i) in section 94(1) by substituting the following for the defini-tion of “off-road dumper”:

“ ‘off-road dumper’ means a vehicle described in para- 30graph 2(b) of Part 1 of the Schedule to the Finance (ExciseDuties)(Vehicles) Act 1952;”,

(j) in section 94(1) by substituting the following for the defini-tion of “propellant”:

“ ‘propellant’ means— 35

(a) in relation to mineral oil in the State, mineral oilused for combustion in the engine of a motorvehicle, or

(b) in relation to mineral oil in another MemberState, mineral oil that is subject to a minimum 40rate specified for motor fuel under Article 7.1and Annex 1 Table A of the Directive;”,

(k) in section 94(1) by substituting the following for the defini-tion of “special container”:

“ ‘special container’ means any freight container fitted 45with specially designed apparatus for the purpose of

154

refrigeration, oxygenation, thermal insulation or othersimilar purposes;”,

(l) in section 94(1) by substituting the following for the defini-tion of “substitute fuel”:

“ ‘substitute fuel’ means any product in liquid form,5other than—

(a) a mineral oil of a description for which a rate isspecified in Schedule 2, or

(b) an additive,

that is used, intended for use, or suitable for use as motor10or heating fuel;”,

(m) in section 94 by substituting the following for subsection(2):

“(2) (a) In this Chapter ‘fuel tank’ means any tank orother vessel in or on a motor vehicle, which is15used, or is capable of being used, to supply fuelfor combustion—

(i) in the engine of the motor vehicle for thepurposes of propulsion of that vehicle, or

(ii) in the engine of another motor vehicle20which can provide traction for thosepurposes.

(b) For the purposes of paragraph (a) it shall bepresumed, until the contrary is shown, that atank or other vessel referred to in that para-25graph is capable of being used to supply fuelfor the purposes of propulsion if there is anyoutlet from the tank or vessel other than—

(i) an outlet which is permanently and solelyfor the supply of fuel for refrigeration,30oxygenation, thermal insulation or otherspecialised systems in or on the motorvehicle, or

(ii) in the case of an oil road tanker, an outletwhich is solely for discharging fuel from35the tanker.”,

(n) by substituting the following for section 95:

“95.—(1) Subject to the provisions of this Chapter, andany regulations made under it, a duty of excise, to beknown as mineral oil tax, shall be charged, levied and40paid—

(a) on all mineral oil—

(i) released for consumption in the State, or

(ii) released for consumption in anotherMember State, and brought into the State,45

155

and

(b) on all coal that is brought into, or produced in,the State.

(2) Liability to mineral oil tax on mineral oil shall ariseat the time when that mineral oil is— 5

(a) released for consumption in the State, or

(b) following release for consumption in anotherMember State, brought into the State.

(3) For the purposes of charging mineral oil tax on min-eral oil, the volume of mineral oil shall be ascertained at 10a temperature of 15 degrees Celsius and in the mannerspecified by the Commissioners.

(4) Any mineral oil that is the product of recycling isliable to mineral oil tax in accordance with section 96(3),and no allowance shall be made for any mineral oil tax 15that may have been paid on the mineral oil that was sub-jected to recycling.

(5) Notwithstanding the generality of subsection (1),only mineral oil and coal which come within the definitionof ‘energy products’ in Article 2.1 of the Directive, substi- 20tute fuel and additives shall be subject to mineral oil tax.”,

(o) by deleting section 95A,

(p) in section 96 by substituting the following for subsection(3):

“(3) The rate of mineral oil tax charged on recycled 25mineral oil under section 95(4) shall be—

(a) where that mineral oil is used, or intended foruse, as a propellant, the rate specified in Sched-ule 2 for heavy oil used as a propellant, and

(b) where that mineral oil is used, or intended for 30use, otherwise than as a propellant, the rate sospecified for other heavy oil.”,

(q) by substituting the following for section 100:

“100.—(1) Subject to such conditions as the Commis-sioners may prescribe or otherwise impose, a relief from 35mineral oil tax shall be granted on any mineral oil that isshown to the satisfaction of the Commissioners—

(a) to be intended for use, or to have been used, forpurposes other than motor or heating fuel,

(b) to be intended for use, or to have been used, for 40chemical reduction or in electrolytic or metal-lurgical processes,

(c) to be mineral oil in respect of which the Ministerthinks it proper to repay or remit mineral oiltax or part of that tax to the extent that the 45Minister thinks proper,

156

(d) to be intended for use, or to have been used, bya manufacturer in the production of mineraloil,

(e) to be heavy oil which is intended for use, orwhich has been used, in aircraft engines during5testing and maintenance of those engines, or

(f) to be intended solely for use, or to have beensolely used, to produce electricity, where thatelectricity is subject to electricity tax undersection 58(1) of the Finance Act 2008 or is sup-10plied for consumption outside the State.

(2) Subject to such conditions as the Commissionersmay prescribe or otherwise impose, a relief from mineraloil tax shall be granted on any mineral oil that is shown tothe satisfaction of the Commissioners—15

(a) to be intended for use, or to have been used, asfuel for the purpose of sea navigation, includ-ing sea-fishing but not including privatepleasure navigation, or

(b) to be heavy oil intended for use, or to have been20used, as fuel for the purpose of air navigationother than private pleasure flying.

(3) The relief under subsection (2)(a) applies to min-eral oil used for heating, refrigeration or thermal insu-lation on board ships and boats, but does not apply to25mineral oil used for industrial purposes on floating struc-tures designed for those purposes.

(4) Subject to such conditions as the Commissionersmay prescribe or otherwise impose, a relief from mineraloil tax shall be granted on any mineral oil that is—30

(a) present in the fuel tank of a motor vehicle, atthe time that vehicle is brought into the Statefrom another Member State by a private indi-vidual, or in a single portable vessel with acapacity of not more than 10 litres that is in35that vehicle at that time, where the mineral oilhas, in that Member State, been released forconsumption as a propellant,

(b) present in the standard tank of a commercialmotor vehicle, or any other commercial mech-40anically propelled vehicle, at the time thatvehicle is brought into the State from anotherMember State, where that mineral oil hasbeen—

(i) released for consumption as a propellant in45another Member State, or

(ii) released for consumption otherwise than asa propellant in another Member State andis permitted, under the law in force in thatMember State, to be used in that vehicle,50

or

157

(c) present in the standard tank of a craft used forprivate pleasure navigation at the time thatcraft is brought into the State from anotherMember State by a private individual, includ-ing any such mineral oil that has been marked 5in accordance with the requirements of thatother Member State, where the use for privatepleasure navigation of mineral oil so marked ispermitted by that Member State.

(5) Subject to such conditions as the Commissioners 10may prescribe or otherwise impose, a relief from thecarbon charge shall apply—

(a) to any mineral oil that is shown to the satis-faction of the Commissioners to be biofuel, and

(b) where biofuel has been mixed or blended with 15any other mineral oil, to the biofuel content ofany such mixture or blend.

(6) Subject to such conditions as the Commissionersmay prescribe or otherwise impose, a relief from thecarbon charge shall apply to any mineral oil that is shown 20to the satisfaction of the Commissioners to be intended foruse, or to have been used—

(a) in an installation that is covered by a green-house gas emissions permit, or

(b) for environmentally friendly heat and power 25cogeneration (other than micro-cogenerationwithin the meaning of Directive 2004/8/EC ofthe European Parliament and of the Council of11 February 200414), where it is determined, bya competent authority designated for the pur- 30pose by the Minister, that such cogenerationmeets the requirements for high-efficiencycogeneration under Directive 2004/8/EC of theEuropean Parliament and of the Council of 11February 2004. 35

(7) Where mineral oil is eligible for relief under anyprovision of this section, effect may be given to that reliefby means of remission or repayment of mineral oil tax.

(8) (a) Claims for repayment under subsection (7) shallbe made in such form as the Commissioners 40may direct and shall be in respect of mineraloil used within a period of not less than oneand not more than 6 months.

(b) Except where the Commissioners may in anyparticular case allow, a repayment claim shall 45be made within 4 months following the end ofthe period referred to in paragraph (a).”,

(r) by inserting the following after section 100:

14OJ No. L52, 21.02.2004, p. 50

158

“Mineral oiltax on coal.


‘business use’, subject to Article 11 of theDirective, means use by a business entitywhich independently carries out, in anyplace, the supply of goods and services;5

‘charitable organisation’ means any body ofpersons, or trust, established for charitablepurposes;

‘dual use’ means use both as a heating fueland for purposes other than as a motor fuel10and heating fuel and includes use forchemical reduction and in electrolytic andmetallurgical processes;

‘energy intensive business’ means any busi-ness entity where either the purchases of15energy products and electricity amount toat least 3 per cent of the production value,or the mineral oil tax payable amounts toat least 0.5 per cent of the added value;

‘household’ means a premises used as a20dwelling;

‘mineralogical process’ means a processclassified in the NACE nomenclature undercode DI 26 ‘manufacture of other non-met-allic mineral products’ in Council Regu-25lation (EEC) No. 3037/90 of 9 October199015 on the statistical classification ofeconomic activities in the EuropeanCommunity.

(2) Liability to mineral oil tax on coal30shall arise at the time that coal is the subjectof final delivery, and shall be paid by theperson to whom it is delivered.

(3) Every person who makes final deliv-ery of coal, otherwise than to households or35to charitable organisations, and every per-son who is liable to pay mineral oil tax oncoal, shall register for that purpose with theCommissioners in accordance with suchprocedures as the Commissioners may pre-40scribe or otherwise impose.

(4) Subject to such conditions as theCommissioners may prescribe or otherwiseimpose, a relief from mineral oil tax shallbe granted in respect of coal which is shown45to the satisfaction of the Commissioners tobe intended for use or to have been used—

(a) for the generation of electricity,

(b) for combined heat and powergeneration,50

15OJ No. L293, 24.10.1990, p. 1

159

(c) for agricultural, horticultural orpiscicultural works, and inforestry,

(d) for dual use,

(e) for mineralogical processes, 5

(f) for household use,

(g) by a charitable organisation,

(h) as fuel for trains,

(i) by an energy intensive businesswhich holds a greenhouse gas 10emissions permit, or

(j) for purposes other than as motoror heating fuel.

(5) Without prejudice to subsection (4),and subject to such conditions as the Com- 15missioners may prescribe or otherwiseimpose, a relief from mineral oil taxamounting to one-half of the chargeablerate shall be granted in respect of coalwhich is shown to the satisfaction of the 20Commissioners to be intended for use, orto have been used, by a business that is notan energy intensive business and that holdsa greenhouse gas emissions permit.

(6) Where coal is eligible for relief under 25any provision of this section, effect may begiven to that relief by means of remissionor repayment of mineral oil tax.

(7) (a) Claims for repayment under sub-section (6) shall be made in such 30form as the Commissioners maydirect and shall be in respect ofcoal delivered within a period ofnot less than one and not morethan 6 months. 35

(b) Except where the Commissionersmay in any particular caseallow, a repayment claim shallbe made within 4 months fol-lowing the period referred to in 40paragraph (a).”,

(s) by substituting the following for section 101:

“Licensing ofmineral oiltraders.

101.—(1) Every person who—

(a) produces, sells or deals in,

(b) keeps for sale or delivery, or 45

(c) delivers,

160

any mineral oil (other than additives) foruse as a propellant, or any aviation gaso-line, shall hold a licence (in this sectionreferred to as an ‘auto-fuel trader’slicence’) granted by the Commissioners5under this section.

(2) Every person who—

(a) produces, sells or deals in,

(b) keeps for sale or delivery, or

(c) delivers,10

any gas oil or kerosene that is, undersection 97, liable to a rate lower than theappropriate standard rate, shall hold alicence (in this section referred to as a‘marked fuel trader’s licence’) granted by15the Commissioners under this section.

(3) For the purposes of subsections (1)and (2), a person must hold a separateauto-fuel trader’s licence or marked fueltrader’s licence for each premises in which20the mineral oil concerned is produced andeach premises or, in the case of a markedfuel trader’s licence, place, in which it is—

(a) sold or dealt in, or

(b) kept for sale or delivery,25

by the person.

(4) (a) Except where paragraph (c)applies a person shall onlydeliver mineral oil referred to insubsection (1) from a premises30in respect of which an auto-fueltrader’s licence is in force.

(b) Except where paragraph (c)applies a person shall onlydeliver mineral oil referred to in35subsection (2) from a premisesor place in respect of which amarked fuel trader’s licence isin force.

(c) Paragraphs (a) and (b) shall not40apply to any delivery of mineraloil from a place outside theState, where that delivery is aconsignment carried out inaccordance with the particular45requirements that apply to itunder Chapter 2A or 2B of Part2 of the Finance Act 2001 andthe Control of Excisable Prod-ucts Regulations 2010 (S.I. No.50146 of 2010).

161

(5) (a) Subsections (2) and (3) shall notapply to persons and premisesor places that are, for the timebeing, approved under Regu-lation 38 of the Mineral Oil Tax 5Regulations 2001(S.I. No. 442of 2001).

(b) The approvals referred to inparagraph (a) shall cease tohave effect on such date as the 10Commissioners may prescribe.

(6) The Commissioners may, subject tosubsections (7) and (8), grant to a personan auto-fuel trader’s licence or a markedfuel trader’s licence— 15

(a) on application to the Commis-sioners in writing and on receiptby them of such information asthey may reasonably require,and 20

(b) where the appropriate exciseduty under subsection (10) hasbeen paid.

(7) (a) The particular activity or activi-ties referred to in subsections 25(1) and (2) for which a person islicensed may be specified by theCommissioners in relation toeach auto-fuel trader’s licenceor marked fuel trader’s licence, 30as the case may be.

(b) An auto-fuel trader’s licence anda marked fuel trader’s licence—

(i) shall be subject to conditionsspecified in relation to the 35licence, concerning thesecurity and suitability, tothe satisfaction of the Com-missioners, of any premisesor place concerned and of 40all tanks and other equip-ment used for mineral oilson that premises or place,and

(ii) may be subject to such other 45conditions as the Commis-sioners may so specify.

(c) Different conditions may bespecified under paragraph (b),having regard to the activity or 50activities to which the licencerelates, the mineral oil con-cerned and the circumstances ofeach particular case.

162

(d) The Commissioners may at anytime vary the conditionsreferred to in paragraph (b).

(8) An auto-fuel trader’s licence or amarked fuel trader’s licence shall not be5granted—

(a) where the applicant (or, wherethe applicant is a company, anydirector or person having con-trol of that company within the10meaning of section 11 of theTaxes Consolidation Act 1997)has, in the 10 years before theapplication, been convicted ofany indictable offence under the15Acts referred to in section1078(1) of the Taxes Consoli-dation Act 1997, or any corre-sponding offence under the lawof another Member State,20

(b) where the applicant does nothold a current tax clearance cer-tificate issued under section1094 of the Taxes ConsolidationAct 1997, or25

(c) where the applicant does not,when required, show to thesatisfaction of the Commis-sioners that the applicant, andthe premises or place con-30cerned, can satisfy such con-ditions as may be imposed bythe Commissioners.

(9) The Commissioners may revoke anauto-fuel trader’s licence or a marked fuel35trader’s licence where—

(a) the holder of the licence, or thepremises or place concerned,contravenes or fails to satisfythe conditions specified in40relation to the licence,

(b) the holder of the licence is guiltyof an offence referred to in sub-section (8)(a), or contravenes orfails to comply with any require-45ment of excise law in relation tothe production, sale or dealingin, keeping or delivery of min-eral oil.

(10) A duty of excise shall be charged,50levied and paid, at the rate of €250, onevery auto-fuel trader’s licence and markedfuel trader’s licence granted under thissection.

163

(11) An auto-fuel trader’s licence and amarked fuel trader’s licence shall, at alltimes be clearly displayed at the premisesor place in respect of which that licence hasbeen granted. 5

(12) An auto-fuel trader’s licence and amarked fuel trader’s licence shall, exceptwhere—

(a) another date is prescribed, or

(b) a licence is revoked under sub- 10section (9),

continue in force until the next following 30June after the date on which it came intoforce.

(13) The Commissioners may compile a 15list of persons who hold an auto-fuel trad-er’s licence or a marked fuel trader’slicence, and of the premises or places inrespect of which those licences are in force,and notwithstanding any obligation to 20maintain secrecy or any other restriction onthe disclosure or production of informationobtained by or furnished to them, the Com-missioners may, by electronic means orotherwise, make those lists available to the 25public.”,

(t) by deleting section 101A,

(u) in section 102(1) by substituting the following for subpara-graph (iii) of paragraph (b):

“(iii) any mineral oil containing any marker 30required by another Member State,”,

(v) in section 102(1) by substituting the following for para-graphs (d), (da) and (e):

“(d) to produce, sell or deal in, keep for sale or deliv-ery, or deliver any mineral oil (other than 35additives) for use as a propellant, or anyaviation gasoline, where that person is not, inrelation to those activities, the holder of anauto-fuel trader’s licence granted undersection 101(1), 40

(e) to produce, sell or deal in, keep for sale or deliv-ery, or deliver any gas oil or kerosene that is,under section 97, liable to a rate lower than theappropriate standard rate, where that person isnot, in relation to those activities, the holder of 45a marked fuel trader’s licence granted undersection 101(2),

(f) where that person is the holder of an auto-fueltrader’s licence granted under section 101(1),or a marked fuel trader’s licence granted under 50section 101(2), to fail to display the licence at

164

the premises or place to which that licencerelates, or

(g) to contravene, or fail to comply with, a tempor-ary prohibition of trade order under section102A.”,5

(w) in section 102 (1A) by substituting the following for subpa-ragraph (iii) of paragraph (b):

“(iii) any mineral oil containing any markerrequired by another Member State.”,

(x) in section 102 by substituting the following for subsection10(3):

“(3) It is an offence under this subsection—

(a) without the consent in writing of the Commis-sioners, to remove or attempt to remove or beknowingly concerned in removing or15attempting to remove any marker from anymineral oil,

(b) to knowingly deal in any mineral oil from whicha marker has been removed, or to which anything has been added for the purpose of20impeding the identification of a marker in anymineral oil, or

(c) to keep or have prohibited goods on any prem-ises or other land or on any vehicle.”,

(y) in section 102 by substituting the following for subsection25(5):

“(5) (a) Any mineral oil in respect of which an offenceunder subsection (1), (1A), (1B) or (3) wascommitted, and any substance mixed with thatmineral oil, is liable to forfeiture.30

(b) Where any mineral oil is liable to forfeitureunder paragraph (a), for an offence relating tothe sale, dealing in, or keeping for sale or deliv-ery of mineral oil at a premises or place, anypumps, vessels or other equipment, used at35that premises or place for supplying the min-eral oil concerned, are liable to forfeiture.”,

and

(z) by deleting section 105.

(2) Paragraphs (s), (v) and (y) come into operation on such day40or days as the Minister may appoint by order, and different days maybe so appointed for different provisions and for different purposes.

79.—Section 65 of the Finance Act 2010 is amended by substitutingthe following for subsection (1):

“(1) Chapter 1 of Part 2 of the Finance Act 1999 is45amended—

165

Amendment ofsection 65 (cesser ofapplication ofmineral oil tax tocoal) of FinanceAct 2010.

Amendment ofChapter 1(electricity tax) ofPart 2 of FinanceAct 2008.

Amendment ofChapter 2 (naturalgas carbon tax) ofPart 3 of FinanceAct 2010.

(a) in section 94(1) (as amended by section 78 of the Fin-ance Act 2012) by deleting the definition of ‘coal’,

(b) in section 95 by substituting the following for subsec-tion (1) (as amended by section 78 of the FinanceAct 2012): 5

‘(1) Subject to the provisions of this Chapter,and any regulations made under it, a duty ofexcise, to be known as mineral oil tax, shall becharged, levied and paid on all mineral oil—

(a) released for consumption in the State, 10or

(b) released for consumption in anotherMember State and brought into theState.’,

(c) in section 95(2) (as amended by section 78 of the Fin- 15ance Act 2012) by substituting ‘Liability to mineraloil tax shall arise at the time when the mineral oil is’for ‘Liability to mineral oil tax on mineral oil shallarise at the time when that mineral oil is’,

(d) in section 95(5) (as amended by section 78 of the Fin- 20ance Act 2012) by substituting ‘only mineral oil’ for‘only mineral oil and coal’, and

(e) by deleting section 100A (inserted by section 78 of theFinance Act 2012).”.


(a) in section 58(1) by substituting “Subject to the provisionsof this Chapter” for “In addition to any other duty whichmay be chargeable, and subject to the provisions of thisChapter”,

(b) in section 59(2) by deleting “(3),”, 30

(c) in section 59 by deleting subsection (3), and

(d) in section 60 by inserting the following after subsection (1):

“(1A) Any supplier that is not established in the Stateshall make such arrangements with the Commissioners asthe Commissioners may require for the payment of the tax 35and accounting for it, and those arrangements shall includethe appointment of a competent person in the State to giveeffect to them.”.


(a) in section 66(1), in the definition of “CN Code”, by substi- 40tuting “Commission Regulation (EC) No. 2031/2001” for“Commission Regulation (EEC) No. 2031/2001”,

(b) in section 67(1), with effect as on and from 1 May 2012,by substituting “€4.10” for “€3.07”,

166

(c) in section 67(3), with effect as on and from 1 May 2012,by substituting “€0.020” for “€0.015”,

(d) by substituting the following for section 68:

“68.—(1) Tax shall be charged at the time the naturalgas is supplied by a supplier to a consumer and, except5where subsection (2) applies, that supplier shall beaccountable for and liable to pay the tax charged on thenatural gas supplied by that supplier.

(2) A consumer shall be liable for any deficiency in theamount of tax paid on a supply, where that deficiency has10resulted from false or misleading information furnished tothe supplier concerned by that consumer, and no such liab-ility shall attach to the supplier.”,

(e) in section 70 by inserting the following subsection:

“(3) Any supplier that is not established in the State15shall make such arrangements with the Commissioners asthe Commissioners may require for the payment of the taxand accounting for it, and those arrangements shall includethe appointment of a competent person in the State to giveeffect to them.”,20

(f) in section 71(1) by substituting the following for para-graph (a):

“(a) solely for the generation of electricity, or”,

(g) in section 71 by substituting the following for subsection(2):25

“(2) Subject to such conditions as the Commissionersmay prescribe or otherwise impose, a partial relief fromtax shall be granted on any natural gas that is shown tothe satisfaction of the Commissioners to have been sup-plied for use—30

(a) in an installation that is covered by a green-house gas emissions permit, or

(b) for environmentally friendly heat and powercogeneration (other than micro-cogenerationwithin the meaning of Directive 2004/8/EC of35the European Parliament and of the Council of11 February 200416), where it is determined, bya competent authority designated for the pur-pose by the Minister, that such cogenerationmeets the requirements for high-efficiency40cogeneration under Directive 2004/8/EC of theEuropean Parliament and of the Council of 11February 2004.”,

and

(h) in section 71 by inserting the following subsection:4516OJ No. L52, 21.02.2004, p.50

167

Amendment ofChapter 3 (solidfuel carbon tax) ofPart 3 of FinanceAct 2010.

“(3) The relief under subsection (2) shall be calculatedas the amount of tax chargeable on the natural gas sup-plied, less an amount calculated at the rate of €0.54 permegawatt hour.”.


(a) in section 77, in the definition of “CN Code”, by substitut-ing “Commission Regulation (EC) No. 2031/2001” for“Commission Regulation (EEC) No. 2031/2001”,

(b) by substituting the following for section 79:

“79.—(1) Tax shall be charged at the time the solid fuel 10is first supplied in the State by a supplier and, exceptwhere subsection (2) applies, that supplier shall beaccountable for and liable to pay the tax charged.

(2) A consumer shall be liable for any deficiency in theamount of tax charged on a supply, where that deficiency 15has resulted from false or misleading information fur-nished to the supplier concerned by that consumer, and nosuch liability shall attach to the supplier.”,

and

(c) by substituting the following for section 82: 20

“82.—(1) Subject to such conditions as the Commis-sioners may prescribe or otherwise impose, a full relieffrom tax shall be granted on any solid fuel that is shownto the satisfaction of the Commissioners to have beendelivered for use— 25

(a) solely for the generation of electricity, or

(b) for chemical reduction or in electrolytic or met-allurgical processes.

(2) Subject to such conditions as the Commissionersmay prescribe or otherwise impose, a relief from tax shall 30be granted on any solid fuel that is shown to the satis-faction of the Commissioners to have been delivered foruse—

(a) in an installation that is covered by a green-house gas emissions permit, or 35

(b) for environmentally friendly heat and powercogeneration (other than micro-cogenerationwithin the meaning of Directive 2004/8/EC ofthe European Parliament and of the Council of11 February 200417), where it is determined, by 40a competent authority designated for the pur-pose by the Minister, that such cogenerationmeets the requirements for high-efficiencycogeneration under Directive 2004/8/EC of theEuropean Parliament and of the Council of 11 45February 2004.

(3) The relief under subsection (2) is—17OJ No. L52, 21.02.2004, p. 50

168

(a) in the case of peat, a full relief, and

(b) in the case of coal, a partial relief, to be calcu-lated as the amount of tax chargeable on thequantity of coal delivered, less an amount cal-culated at the rate of €4.18 per tonne.”.5

83.—(1) Chapter IV (which relates to the registration and tax-ation of vehicles) of Part II of the Finance Act 1992 is amended—

(a) in section 130 by inserting the following after the definitionof “the register”:

“ ‘registration’ includes re-registration;”,10

(b) in section 130 by substituting the following for the defini-tion of “vehicle”:

“ ‘vehicle’ means a mechanically propelled vehicle, includ-ing an unregistered vehicle—

(a) built up from the chassis, or15

(b) built using a monocoque or an assembly servingan equivalent purpose as a chassis,

which chassis, monocoque or assembly is either new orunused or is derived from another unregistered vehicle;”,

(c) by deleting sections 130A, 130B and 131A,20

(d) in section 132 by substituting in subsection (1) “Subject tothe provisions of this Chapter” for “In addition to anyother duty which may be chargeable, subject to the pro-visions of this Chapter”,

(e) by deleting section 132(5)(b),25

(f) in section 133 by substituting the following for “newvehicle”:

“ ‘new vehicle’ means a vehicle that has not previouslybeen registered or recorded on a permanent basis—

(a) in the State under this Chapter or, before 130January 1993, under any enactment repealedor revoked by section 144A or under any otherprovision to like effect as this Chapter or anysuch enactment, or

(b) under a corresponding system for maintaining a35record for vehicles and their ownership inanother state,

and where the vehicle has been acquired under generalconditions of taxation in force in the domestic market;”,

(g) by deleting subsections (1) to (5) of section 135B,40

(h) in section 135B(6)(a) by substituting “sections 105B and105D” for “sections 105B, 105C and 105D”,

(i) by deleting sections 135BA and 135C(3)(a),

169

Vehicle registrationtax.

(j) by inserting the following section after section 135C:

“Repaymentof amounts ofvehicleregistration taxon export ofcertainvehicles.

135D.—(1) The Commissioners mayrepay to a person an amount calculated inaccordance with this section of vehicleregistration tax based on the open market 5selling price of a vehicle which has beenremoved from the State, where—

(a) the vehicle is a category M1vehicle,

(b) the vehicle has been registered 10under section 131 and thevehicle registration tax hasbeen paid,

(c) the vehicle was, immediatelyprior to being so removed, 15registered under section 131,

(d) within 30 days prior to being soremoved—

(i) the vehicle and any docu-mentation to which para- 20graph (b) or (c) relates, and

(ii) where applicable, a valid testcertificate (within themeaning of the RoadTraffic (National Car Test) 25Regulations 2003 (S.I. No.405 of 2003)) in respect ofthe vehicle,

have been examined by a com-petent person and all relevant 30matters have been found by thatperson to be in order,

(e) at the time of examination towhich paragraph (d) relates, theopen market selling price of the 35vehicle (being the price towhich subsection (2) relates) isnot less than €2,000, and

(f) the requirements of subsection(3) have been complied with. 40

(2) The amount of vehicle registrationtax to be repaid shall be calculated by refer-ence to the open market selling price (beingthat price as determined by theCommissioners) of the vehicle at the time 45of the examination referred to in subsec-tion (1)(d).

(3) A claim for repayment for anamount of vehicle registration tax underthis section shall be made in such manner 50and in such form as may be approved by

170

the Commissioners for that purpose andshall be accompanied by—

(a) documentation to prove to thesatisfaction of the Commis-sioners that the vehicle was5removed from the State within30 days of its examination underthis section, and

(b) proof that the vehicle has sub-sequently been registered in10another Member State or hasbeen permanently exportedoutside the European Union.

(4) The amount of vehicle registrationtax calculated for repayment under this15section in respect of a vehicle shall bereduced to take account of—

(a) the net amount of any remissionor repayment of that tax pre-viously allowed on the vehicle20under this Chapter, and

(b) an administration charge of €500.

(5) Any repayment of vehicle regis-tration tax under this section shall be to theperson named, at the time of the examin-25ation referred to in subsection (1)(d), onthe registration certificate issued in accord-ance with section 131(5)(a).”,

(k) in section 136A by substituting, in the first sentence ofsubsection (4), the following for the meaning assigned to30“B” for the purpose of the formula in that subsection:

“B is an amount (if any) payable by the competent personto the Commissioners that is calculated by means ofone or more than one formula or other means of cal-culation as may be prescribed.”,35

(l) in section 141, in subsection (2), by deleting “and” whereit last occurs in paragraph (m), by substituting “vehicles,and” for “vehicles.” in paragraph (w) and by inserting thefollowing after paragraph (w):

“(x) for the purpose of the formula in subsection (4)40of section 136A, prescribe one or more thanone formula or other means of calculation forthe purpose of the meaning assigned to ‘B’ inthat subsection.”,

and45

(m) by deleting section 142.

(2) Subsection (1)(j) comes into operation on such day or days asthe Minister for Finance appoints by order.

171


Ministerial orders.

PART 3

Value-Added Tax

84.—In this Part “Principal Act” means the Value-Added TaxConsolidation Act 2010.

85.—The Principal Act is amended— 5

(a) in section 2(1), in the definition of “exempted activity”, bysubstituting the following for paragraph (b):

“(b) a supply of any goods or services of a kind speci-fied in Schedule 1;”,

(b) in section 52(2) by substituting the following for para- 10graph (a):

“(a) The Minister may by order amend Schedule 1.”,

(c) in section 103(1) by substituting “Subject to subsection(2A), the Minister” for “The Minister”,

(d) in section 103(2) by substituting “Subject to subsection 15(2A), the Minister” for “The Minister”, and

(e) in section 103 by inserting the following after subsection(2):

“(2A) Where the Minister makes an order under thissection, the Minister, in making the order, shall have 20regard to one or both of the following:

(a) the nature or purpose, including any social pur-pose, of the goods or services to which therefund the subject of the order relates;

(b) the nature or purpose of the person referred to 25in subsection (1) in relation to the goods orservices to which the refund the subject of theorder relates.

(2B) Where the Minister makes an order under thissection, the Minister may specify requirements in the 30order, to be complied with by the person referred to insubsection (1) after the refund the subject of the order hasbeen paid to him or her, relating to—

(a) the carrying out of a review—

(i) at such time, or 35

(ii) upon the occurrence of such event,

as may be specified in the requirement con-cerned, to ascertain whether the conditionsspecified in the order continue to be fulfilled inrelation to that person, or in relation to the 40goods or services to which such refund relates,or both, and

172

(b) the repayment to the Revenue Commissionersof all or part of such refund, as specified inthe requirement concerned, if, following suchreview, it is ascertained that one or more ofthose conditions—5

(i) is no longer fulfilled, or

(ii) has, at any stage after such refund has beenpaid to that person, temporarily ceased tobe fulfilled.”.

86.—(1) The Principal Act is amended—10

(a) in section 16 by inserting the following after subsection (4):

“(5) (a) In this subsection ‘construction work’, inrelation to immovable goods, includes—

(i) construction, extension, alteration anddemolition services, and15

(ii) engineering work or other operations whichadapt those immovable goods for materi-ally altered use.

(b) Where an accountable person supplies construc-tion work in the State to a taxable person (in20this subsection referred to as a ‘recipient’) towhom the accountable person is connected(within the meaning of section 97(3)), then—

(i) the recipient shall, in relation to such sup-plies, be an accountable person or be25deemed to be an accountable person andshall be liable to pay the tax chargeable asif that recipient made that supply in thecourse or furtherance of business, and

(ii) the person who supplied the construction30work shall not be accountable for or liableto pay such tax in respect of thosesupplies.”,

(b) in section 19(1) by deleting paragraph (d),

(c) in section 41(4) by inserting “or (5)” after “section 16(3)”,35

(d) in section 59(2) by inserting the following after para-graph (ia):

“(ib) the tax chargeable during the period, beingtax for which the recipient (within themeaning of section 16(5)(b)) is liable by40virtue of section 16(5)(b) in respect of sup-plies of construction work received by thatrecipient, but only where that recipientwould be entitled to a deduction of thattax elsewhere under this subsection if that45tax had been charged to such recipient byan accountable person,”,

173

Supplies ofconstructionservices betweenconnected persons— reverse charge.

Amendment ofsection 46 (rates oftax) of PrincipalAct.

Amendment ofsection 66 (issue ofinvoices and otherdocuments) ofPrincipal Act.

Amendment ofsection 84 (duty tokeep records) ofPrincipal Act.

Amendment ofsection 95(transitionalmeasures forsupplies ofimmovable goods)of Principal Act.

Amendment ofsection 111(assessment of taxdue) of PrincipalAct.

and

(e) in section 66 by inserting the following after subsection(4A):

“(4B) (a) Where an accountable person supplies con-struction work to which section 16(5)(b) 5applies, the person shall issue a document tothe recipient of such supplies indicating—

(i) that the recipient is liable to account for thetax chargeable on that supply, and

(ii) such other particulars as would be required 10to be included in that document if thatdocument were an invoice required to beissued in accordance with subsection (1)but excluding the rate at which the tax ischargeable and the amount of tax payable. 15

(b) Where the recipient and the person who sup-plied the construction work so agree, section71(1) may apply to this document as if it werean invoice.”.

(2) Subsection (1) applies as on and from 1 May 2012. 20

87.—Section 46(1)(a) of the Principal Act is amended with effectfrom 1 January 2012 by substituting “23 per cent” for “21 per cent”.

88.—Section 66 of the Principal Act is amended by deleting sub-section (5).

89.—Section 84 of the Principal Act is amended— 25

(a) in subsection (3) by inserting “and notwithstanding anyother law” after “subsection (4)”, and

(b) by substituting the following for subsection (5):

“(5) This Chapter shall not require the retention ofrecords or invoices or any of the other documents in 30respect of which the Revenue Commissioners notify theperson concerned that retention is not required.”.

90.—Section 95(12)(c) of the Principal Act is amended by inserting“(other than a development which is a refurbishment within themeaning of section 63(1))” after “development of those goods”. 35

91.—Section 111(1) of the Principal Act is amended—

(a) in paragraph (c) by substituting “to the person;” for “tothe person,”,

(b) by inserting the following after paragraph (c):

174

“(d) the total amount of tax refunded to the personin accordance with an order under section 103was greater than the amount (if any) properlyrefundable to that person,”,

and5

(c) by substituting the following for paragraph (i):

“(i) may, in accordance with regulations butsubject to section 113, make an assessmentin one sum of—

(I) the total amount of tax which in his or10her opinion should have been paid,

(II) the total amount of tax (including a nilamount) which in accordance withsection 99(1) should have beenrefunded, or15

(III) the total amount of tax (including a nilamount) which in accordance with theorder under section 103 should havebeen refunded,

as the case may be, in respect of such20period, and”.

92.—The Principal Act is amended by inserting the following aftersection 114:

“114A.—(1) Where an amount of tax is refunded to a personin accordance with an order under section 103 and—25

(a) no amount of tax was properly refundable to that per-son under the order, or

(b) the amount of tax refunded is greater than the amountproperly refundable to that person under that order,

then simple interest shall be paid by that person on any amount30of tax refunded to that person which was not properlyrefundable to that person under that order, from the date therefund was made, at the rate of 0.0274 per cent for each day orpart of a day during which the person does not correctly accountfor any such amount refunded which was not properly35refundable.

(2) Subsection (1) shall apply to tax recoverable by virtue ofa notice under section 111 (whether a notice of appeal underthat section is received or not) as if the tax were tax which theperson was liable to pay for the taxable period or, as the case40may be, the later or latest taxable period included in the periodcomprised in the notice.”.

93.—Section 115 of the Principal Act is amended by inserting thefollowing after subsection (7A):

175

Interest payable incertaincircumstances.

Amendment ofsection 115(penaltiesgenerally) ofPrincipal Act.

Amendment ofSchedule 2 (zero-rated goods andservices) toPrincipal Act.

Amendment ofSchedule 3 (goodsand serviceschargeable at thereduced rate) toPrincipal Act.

“(7B) A person who does not comply with a requirementspecified in an order under section 103 shall be liable to a pen-alty of €4,000.”.

94.—Schedule 2 to the Principal Act is amended—

(a) in paragraph 8(1), in column (2) of Part F of Table 1, by 5inserting “or other” after “cereal”, and

(b) in paragraph 8(1) by substituting the following for Table 2:

“Table 2

Ingredients and Weight Limits thereof for Bread asdefined in column (2) of Part F of Table 1 10

(1) (2)Ingredients Weight limits for the ingredients,

as percentage of weight of flourincluded in the dough

Fats and sugars (including any 15Not exceeding 12% in aggregatefats and sugars contained in any

bread improver)

Dried fruit, vegetables, herbs Not exceeding 10% in aggregateand spices

Yeast or other leavening or 20No limitaerating agent, seeds, salt, maltextract, milk, water, gluten and

bread improver

”.

95.—(1) Schedule 3 to the Principal Act is amended— 25

(a) in paragraph 1(1), in paragraph (b) of the definition of“margin scheme supply”, by substituting “section 89(3);”for “section 89(3).”,

(b) in paragraph 1(1) by inserting the following after thedefinition of “margin scheme supply”: 30

“ ‘open farm’ means a facility the principal functionof which is the exhibition (other than on an occasionalbasis) of animals and agricultural activities, and suchexhibition may also include rural heritage.”,

and 35

(c) in paragraph 8 by substituting the following for subpara-graph (4):

“(4) Admission to—

(a) exhibitions, of the kind normally held inmuseums and art galleries, of objects of histori- 40cal, cultural, artistic or scientific interest (notbeing services of the kind specified in para-graph 3(5) of Schedule 1), or

(b) built or natural heritage facilities which areopen to the public other than on an occasional 45

176

basis (not being services of the kind specifiedin paragraph 3(5) of Schedule 1),

but excluding any part of the fee for such admission whichrelates to goods or services other than such admission.

(5) Admission to an open farm, but excluding any part5of the fee for such admission which relates to goods orservices other than such admission.”.

(2) Subsection (1) applies as on and from 1 January 2012.

(3) Schedule 3 to the Principal Act is amended by inserting thefollowing after Part 2:10

“PART 2A

CERTAIN SUPPLIES WITH REDUCED RATE:PARTICULAR PROVISIONS IN ACCORDANCE WITH

ARTICLE 102 OF THE VAT DIRECTIVE

District heating.15

13A. The supply of district heating.”.

(4) Subsection (3) applies as on and from 1 March 2012.

PART 4

Stamp Duties

96.—In this Part “Principal Act” means the Stamp Duties Consoli-20dation Act 1999.


(a) in section 90A by deleting subsection (4),

(b) in section 101 by deleting subsection (4),

(c) in section 101A by deleting subsection (4), and25

(d) in Schedule 1 as indicated in Schedule 2.

(2) Subject to subsection (3), subsection (1) applies as respectsinstruments executed on or after 7 December 2011.

(3) Subsection (1) does not apply as respects any instrumentexecuted before 1 July 2012 where—30

(a) the effect of the application of that subsection would be toincrease the duty otherwise chargeable on the instru-ment, and

(b) the instrument contains a statement, in such form as theRevenue Commissioners may specify, certifying that the35instrument was executed solely in pursuance of a bindingcontract entered into before 7 December 2011.

177


Reduction of dutychargeable on non-residential property.

Relief for clearinghouses.

Merger ofcompanies.

Amendment ofprovisions relatingto the internationalfinancial servicesindustry.

98.—Section 75A of the Principal Act is amended—

(a) in subsection (1), in the definition of “recognised clearinghouse”, by substituting the following for paragraph (c):

“(c) SIX x-clear AG, or”,

and 5

(b) in subsection (3) by inserting the following after para-graph (d):

“(da) from a recognised clearing house or a nomineeof a recognised clearing house, to anotherrecognised clearing house or a nominee of that 10recognised clearing house,”.

99.—The Principal Act is amended by inserting the following aftersection 87A:

“87B.—(1) In this section—

‘cross-border merger’ has the same meaning as in Regulation 152(1) of the European Communities (Cross-Border Mergers)Regulations 2008 (S.I. No. 157 of 2008);

‘merger’ has the same meaning as in Regulation 4 of the Euro-pean Communities (Mergers and Divisions of Companies)Regulations 1987 (S.I. No. 137 of 1987); 20

‘SE’ means a European public limited-liability company(Societas Europaea or SE) as provided for by the SE Regulation;

‘SE merger’ means the formation of an SE by merger of 2 ormore companies in accordance with Article 2(1) and subpara-graph (a) or (b) of Article 17(2) of the SE Regulation; 25

‘SE Regulation’ means Council Regulation (EC) No. 2157/2001of 8 October 200118 on the Statute for a European company(SE).

(2) Stamp duty shall not be chargeable on an instrumentmade for the purposes of the transfer of assets pursuant to a 30merger, a cross-border merger or an SE merger.”.


(a) in section 1(1) by substituting the following for the defini-tion of “stock”:

“ ‘stock’ includes any share in any stocks or funds transfer- 35able at the Bank of England or at the Bank of Ireland andany share in the stocks or funds of any foreign state orgovernment, or in the capital stock or funded debt of anycounty council, corporation, company, or society in theState, or of any foreign corporation, company, or society 40and includes any option over any share in such stocks orfunds;”,

(b) by inserting the following after section 82B:18OJ No. L294, 10.11.2001, p.1

178

“Pensionschemes andcharities.


‘Act of 1997’ means the Taxes Consoli-dation Act 1997;

‘charity’ means a body of persons or a trustestablished for charitable purposes only;5

‘common contractual fund’ has the meaninggiven to it by section 739I(1)(a)(i) of theAct of 1997;

‘investment undertaking’ has the meaninggiven to it by section 739B(1) of the Act10of 1997;

‘pension scheme’ means—

(a) a retirement benefits scheme,within the meaning of section771 of the Act of 1997,15approved by the Commissionersfor the purposes of Chapter 1 ofPart 30 of that Act,

(b) an annuity contract or a trustscheme or part of a trust scheme20approved by the Commissionersunder section 784 of the Act of1997,

(c) a PRSA contract, within themeaning of section 787A of the25Act of 1997, in respect of aPRSA product, within themeaning of that section,

(d) an approved retirement fundwithin the meaning of section30784A of the Act of 1997,

(e) an approved minimum retire-ment fund within the meaningof section 784C of the Act of1997, or35

(f) a scheme within the meaning ofsection 790B of the Act of 1997;

‘specified fund’ means a common contrac-tual fund, investment undertaking, unitlinked life fund, or unit trust, all the issued40units or shares of which are assets such thatif those assets were disposed of by the unitholder or shareholder any gain accruingwould be wholly exempt from capital gainstax (otherwise than by reason of residence);45

‘unit linked life fund’ means a fund in whichassets are held by an assurance companyfor the purposes of its new basis business;

179

‘unit trust’ means a unit trust to which sub-section (5)(a)(i) of section 731 of the Actof 1997 applies;

‘assurance company’ and ‘new basis busi-ness’ have the meanings given to them 5respectively by section 730A of the Act of1997.

(2) Stamp duty shall not be chargeableon any instrument made for the purposesof a transfer of property— 10

(a) held by or for the benefit of apension scheme or a charity, incircumstances where the prop-erty continues to be so heldafter the transfer has taken 15place,

(b) held by or for the benefit of apension scheme or a charity to aspecified fund, in circumstanceswhere the specified fund issues 20units or shares to be held by orfor the benefit of the pensionscheme or the charity,

(c) held by a specified fund to or forthe benefit of a pension scheme 25or charity, or

(d) held by a specified fund (in thisparagraph referred to as a‘transferring fund’) to anotherspecified fund (in this para- 30graph referred to as a ‘receivingfund’) in circumstances wherethe receiving fund issues unitsor shares to—

(i) the transferring fund, or 35

(ii) the unit holders or share-holders in the transferringfund in respect of and inproportion to (or as nearlyas they may be in pro- 40portion to) their holdingsof units or shares in thetransferring fund,

to be held by or for the benefitof the pension scheme or the 45charity.”,

(c) in section 88(1)(b)(iii) by substituting “(5) or (6)” for“(6)”,

(d) in section 88(1)(b)(iv) by substituting “company or otherbody corporate” for “company”, 50

180

(e) in section 88B by substituting the following for subsec-tion (2):

“(2) Stamp duty shall not be chargeable on any instru-ment made for the purposes of or in connection with anyarrangement between a foreign fund and a domestic fund,5being an arrangement entered into for the purposes of orin connection with a scheme of reconstruction or amalga-mation under which—

(a) the foreign fund transfers assets to the domesticfund and the domestic fund—10

(i) issues units to persons who hold units in theforeign fund in respect of and in pro-portion to (or as nearly as may be in pro-portion to) their holdings of units in theforeign fund, or15

(ii) issues units directly to the foreign fund,

or

(b) the domestic fund transfers assets to the foreignfund and the foreign fund—

(i) issues units to persons who hold units in the20domestic fund in respect of and in pro-portion to (or as nearly as may be in pro-portion to) their holdings of units in thedomestic fund, or

(ii) issues units directly to the domestic fund.”,25

(f) by inserting the following after section 88E:

“Reconstructionoramalgamationof offshorefunds.

88F.—Stamp duty shall not be charge-able on any instrument made for the pur-poses of or in connection with—

(a) a scheme of reconstruction or30amalgamation of an offshorefund to which section 747F ofthe Taxes Consolidation Act1997 refers, or

(b) an exchange referred to in para-35graph (b) of section 747E(1A)of the Taxes Consolidation Act1997.”,

(g) by inserting the following after section 88F (inserted byparagraph (f)):40

“Amalgamationof unit trusts.

88G.—Stamp duty shall not be charge-able on any instrument made for the pur-poses of or in connection with a scheme ofamalgamation to which section 739D(8C)of the Taxes Consolidation Act 199745refers.”,

(h) in section 90(2)(g)(ii) by substituting “a lease or an interestin a lease,” for “a lease,”, and

181

Carbon offsets.

Amendment ofsection 101(intellectualproperty) ofPrincipal Act.

GrangegormanDevelopmentAgency.

Amendment ofsection 123B (cash,combined and debitcards) of PrincipalAct.

(i) in section 98(2) by substituting the following for para-graph (b):

“(b) the stocks or marketable securities of a com-pany, other than a company which is an invest-ment undertaking within the meaning of 5section 739B of the Taxes Consolidation Act1997, which is registered in the State.”.

(2) Subsection (1)(b) has effect in respect of instruments executedon or after 8 February 2012.

101.—Section 90A of the Principal Act is amended by substituting 10the following for subsection (1):

“(1) In this section ‘greenhouse gas emissions allowance’means carbon offsets within the meaning of section 110(1) ofthe Taxes Consolidation Act 1997.”.

102.—Section 101 of the Principal Act is amended by substituting 15the following for subsection (1):

“(1) In this section ‘intellectual property’ means a specifiedintangible asset within the meaning of section 291A(1) of theTaxes Consolidation Act 1997.”.

103.—The Principal Act is amended by inserting the following 20after section 106B:

“106C.—Stamp duty shall not be chargeable on any convey-ance, transfer or lease of land to the Grangegorman Develop-ment Agency in connection with its functions.”.

104.—Section 123B of the Principal Act is amended— 25

(a) in subsection (1) by inserting the following definitionbefore the definition of “bank”:

“ ‘account holder’ means the person authorised to chargeamounts to a card account;”,

(b) in subsection (1) by inserting the following definition after 30the definition of “bank”:

“ ‘basic payment account’ means a card account that meetsthe following conditions—

(a) in the 3 years immediately preceding the open-ing of the card account, the account holder— 35

(i) did not have access to a card account, or

(ii) did have access to a card account (in thissubparagraph referred to as the ‘oldaccount’) but no amounts were charged tothe old account in that period, the old 40account was closed at the time the cardaccount was opened and any balance offunds was transferred to the card account,

182

(b) all amounts payable to the account holder underthe Social Welfare Acts are paid into the cardaccount, and

(c) in respect of 2 consecutive periods of 3 monthsending on 31 March, 30 June, 30 September or531 December, all amounts paid into the cardaccount, other than those referred to in para-graph (b), do not exceed €2,000 in a period of3 months;”,

and10

(c) by substituting the following for subsection (3):

“(3) Notwithstanding subsection (2)—

(a) if the cash card, combined card or debit card isnot used at any time during a year,

(b) if the cash card, combined card or debit card is15issued in respect of a card account—

(i) which is a deposit account, and

(ii) the average of the daily positive balances inthe account does not exceed €12.70 duringthat year,20

or

(c) in relation to the year 2012, if the cash card,combined card or debit card is issued in respectof a basic payment account,

then it shall not be included in the statement relating to25that year.”.

105.—(1) Section 125 of the Principal Act is amended in subsec-tion (2) by substituting “25 days” for “30 days”.

(2) Section 125A of the Principal Act is amended—

(a) in subsection (1), in the definition of “insured person”,30by substituting “spouse or civil partner” for “spouse” ineach place,

(b) in subsection (1), in the definition of “relevant contract”,by substituting “spouse or civil partner” for “spouse” ineach place,35


“(3) There shall be charged on every statement deliv-ered by an authorised insurer pursuant to subsection (2) astamp duty at the rate of—

(a) where the relevant contract was renewed or40entered into before 1 January 2010—

(i) €53 in respect of each insured person agedless than 18 years, and

183

Levies on certaininstitutions.

(ii) €160 in respect of each insured person aged18 years or over,

(b) where the relevant contract was renewed orentered into on or after 1 January 2010 andbefore 1 January 2011— 5



(c) where the relevant contract was renewed or 10entered into on or after 1 January 2011 andbefore 1 January 2012—


(ii) €205 in respect of each insured person aged 1518 years or over,

and

(d) where the relevant contract was renewed orentered into on or after 1 January 2012—

(i) €95 in respect of each insured person aged 20less than 18 years, and


included in the statement.”,

and 25

(d) by deleting subsection (12).

(3) Section 125B(1) of the Principal Act is amended in the defini-tion of “scheme” by substituting the following for subparagraphs (i)and (ii) of paragraph (a):

“(i) approved by the Commissioners for the purposes 30of Chapter 1 of Part 30 of that Act, or

(ii) approved by the Commissioners under any otherenactment (including an enactment that isrepealed) and in respect of which the provisionsof Chapter 1 of Part 30 of the Act of 1997 35were applied,”.

(4) Section 126B(1) of the Principal Act is amended—

(a) in the definition of “relevant person” by substituting thefollowing for paragraphs (d) and (e):

“(d) an insurer within the meaning of section 124B, 40

(e) an insurer within the meaning of section 125,

184

(f) an authorised insurer within the meaning ofsection 125A, or

(g) a chargeable person within the meaning ofsection 125B;”,

and5

(b) in the definition of “specified section” by substituting“125, 125A” for “125”.

(5) The Principal Act is further amended with effect from 1January 2013 by substituting the following for section 125A:

“125A.—(1) In this section—10

‘accounting period’ means—

(a) the period of 7 months commencing on 1 January2013 and ending on 31 July 2013, and

(b) each subsequent period of 12 months commencing on1 August and ending on 31 July;15

‘authorised insurer’ means any undertaking (not being a restric-ted membership undertaking) entered in The Register of HealthBenefits Undertakings, lawfully carrying on such business ofmedical insurance referred to in the definition of ‘relevant con-tract’ but, in relation to an individual, also means any under-20taking (not being a restricted membership undertaking) author-ised pursuant to Council Directive No. 73/239/EEC of 24 July197319, Council Directive No. 88/357/EEC of 22 June 198820, andCouncil Directive No. 92/49/EEC of 18 June 199221, where sucha contract was effected with the individual when the individual25was not resident in the State but was resident in anotherMember State of the European Communities;

‘due date’, in relation to an accounting period, means 21September immediately following the end of the accountingperiod;30

‘excluded contract of insurance’ means—

(a) a contract of insurance which comes within the mean-ing of paragraph (d) of the definition of ‘healthinsurance contract’ in section 2(1) of the HealthInsurance Act 1994, or35

(b) a contract of insurance relating solely to charges forpublic hospital in-patient services made under theHealth (In-Patient Charges) Regulations 1987 (S.I.No. 116 of 1987);

‘in-patient indemnity payment’ has the same meaning as in40section 2(1) of the Health Insurance Act 1994;

‘insured person’, in relation to a relevant contract, means anindividual, the spouse or civil partner of the individual, or thechildren or other dependents of the individual or of the spouseor civil partner of the individual, in respect of whom the relevant45

19OJ No. L228, 16.08.1973, p.320OJ No. L172, 04.07.1988, p.121OJ No. L228, 11.08.1992, p.1

185

contract provides specifically, whether in conjunction with otherbenefits or not, for the reimbursement or discharge, in whole orin part, of actual health expenses (within the meaning of section469 of the Taxes Consolidation Act 1997);

‘relevant contract’ means a contract of insurance (not being an 5excluded contract of insurance) which provides for the makingof in-patient indemnity payments under the contract and which,in relation to an individual, the spouse or civil partner of theindividual, or the children or other dependents of the individualor of the spouse or civil partner of the individual, provides 10specifically, whether in conjunction with other benefits or not,for the reimbursement or discharge, in whole or in part, of actualhealth expenses (within the meaning of section 469 of the TaxesConsolidation Act 1997), being a contract of medical insurance;

‘restricted membership undertaking’ has the same meaning as in 15section 2(1) of the Health Insurance Act 1994;

‘specified rate’ means—

(a) €95 in respect of an insured person aged less than 18years, and

(b) €285 in respect of an insured person aged 18 years 20or over.

(2) Subject to subsections (7), (10) and (11), an authorisedinsurer shall, in respect of each accounting period and not laterthan the due date, deliver to the Commissioners a statement inwriting showing the number of insured persons— 25

(a) aged less than 18 years on 1 January in the accountingperiod, and

(b) aged 18 years or over on 1 January in the accountingperiod,

in respect of whom a relevant contract between the authorised 30insurer and the insured person, being the individual referred toin the definition of ‘insured person’, is renewed, or entered into,during the accounting period concerned.

(3) There shall be charged on every statement delivered byan authorised insurer pursuant to subsection (2) a stamp duty in 35respect of each insured person at the specified rate.

(4) The duty charged by subsection (3) on a statement deliv-ered by an authorised insurer pursuant to subsection (2) shallbe paid by the authorised insurer on delivery of the statement.

(5) There shall be furnished to the Commissioners by an 40authorised insurer such particulars as the Commissioners maydeem necessary in relation to any statement required by thissection to be delivered by the authorised insurer.

(6) In the case of failure by an authorised insurer in respectof an accounting period— 45

(a) to deliver not later than the due date any statementrequired by subsection (2) to be delivered by theauthorised insurer, or

186

(b) to pay the stamp duty chargeable on any such state-ment on the delivery of the statement,

the authorised insurer shall—

(i) from that due date until the day on which the stampduty is paid, be liable to pay, in addition to the duty,5interest on the stamp duty calculated in accordancewith section 159D, and

(ii) from that due date, be liable to pay a penalty of €380for each day the duty remains unpaid.

(7) Where during any accounting period but before the due10date—

(a) an authorised insurer ceases to carry on a business inthe course of which the insurer is required to delivera statement (in this subsection referred to as the‘first-mentioned statement’) pursuant to subsection15(2) (including any case where the authorised insureris so required by virtue of the prior operation of thissubsection) but has not done so before that cesser,and

(b) another person (in this subsection referred to as the20‘successor’) acquires the whole, or substantially thewhole, of the business,

then—

(i) the authorised insurer is not required to deliver thefirst-mentioned statement, and25

(ii) the successor shall—

(I) if the successor is, apart from this subsection,required to deliver a statement (in this subsec-tion referred to as the ‘second-mentionedstatement’) pursuant to subsection (2)30(including any case where the successor is sorequired by virtue of the prior operation of thissubsection) in respect of the same accountingperiod but has not done so before that acquis-ition, include in that second-mentioned state-35ment the number of insured persons that wouldhave been required to have been shown in thefirst-mentioned statement had the authorisedinsurer not ceased to carry on the businessconcerned,40

(II) if subparagraph (I) is not applicable, deliver thefirst-mentioned statement as if the successorwere the authorised insurer.

(8) The delivery of any statement required by subsection (2)may be enforced by the Commissioners under section 47 of the45Succession Duty Act 1853 in all respects as if such statementwere such account as is mentioned in that section and the failureto deliver such statement were such default as is mentioned inthat section.

187

(9) The stamp duty, interest and any penalty payable underthis section shall not be allowed as a deduction for the purposesof the computation of any tax or duty payable by the authorisedinsurer which is under the care and management of the Com-missioners. 5

(10) Where an insured person, being the individual referredto in the definition of ‘insured person’, shows to the satisfactionof an authorised insurer (in this subsection referred to as the‘second authorised insurer’) that another authorised insurer (inthis subsection referred to as the ‘first authorised insurer’) with 10whom that individual renewed, or entered into, a relevant con-tract during an accounting period, was required to include thatinsured person in a statement to be delivered pursuant to sub-section (2) to the Commissioners in respect of the same account-ing period, then the second authorised insurer, with whom the 15individual entered into a later relevant contract during the sameaccounting period, may exclude such insured person from thestatement to be delivered pursuant to subsection (2) to the Com-missioners by the second authorised insurer in respect of thesame accounting period. 20

(11) Where an insured person, being an insured person undera relevant contract who is not the individual referred to in thedefinition of ‘insured person’ in relation to the relevant contractconcerned, shows to the satisfaction of an authorised insurer (inthis subsection referred to as the ‘second authorised insurer’) 25that another authorised insurer (in this subsection referred to asthe ‘first authorised insurer’) with whom that person was aninsured person named on a relevant contract renewed, orentered into, by an individual referred to in the definition of‘insured person’ during an accounting period, was required to 30include that insured person in a statement to be delivered pursu-ant to subsection (2) to the Commissioners for the sameaccounting period, then the second authorised insurer, withwhom the insured person entered into a relevant contract duringthe same accounting period, may exclude such insured person 35from the statement to be delivered pursuant to subsection (2) tothe Commissioners by the second authorised insurer in respectof the same accounting period.

(12) Where—

(a) a relevant contract is renewed or entered into by an 40individual referred to in the definition of ‘insuredperson’ during an accounting period (in this subsec-tion referred to as the ‘initial accounting period’),and

(b) the relevant contract is for a period of more than 12 45months,

then, without prejudice to the treatment to be accorded to therelevant contract and the initial accounting period by subsection(2), the relevant contract shall be deemed, for the purposes ofthis section, to be renewed during— 50

(i) the accounting period which immediately succeeds theinitial accounting period if the second 12 months, orlesser period, of the relevant contract commencesduring such immediately succeeding accountingperiod, and 55

188

(ii) each further accounting period where any subsequent12 months, or lesser period, of the relevant contractcommences during such further accounting period.”.

(6) Subsection (5) does not apply to any accounting period endingbefore 1 January 2013 and section 125A, as it applies immediately5before that date, continues to apply to any duty payable in respectof any such accounting period.

106.—Schedule 2B to the Principal Act is amended in paragraph1 by substituting the following for subparagraph (k):

“(k) Level 6 Advanced Certificate in Horsemanship;10

(l) Level 6 Specific Purpose Certificate in Farm Admini-stration.”.

107.—(1) Subject to subsection (2), the Principal Act is amendedto the extent and in the manner specified in Schedule 3.

(2) This section and Schedule 3 have effect as respects instruments15first executed on or after such date as the Minister by order specifiesand, accordingly, the provisions of the Principal Act, as they appliedto instruments first executed before that date, continue to apply toinstruments first executed before that date.

PART 520

Capital Acquisitions Tax

108.—In this Part “Principal Act” means the Capital AcquisitionsTax Consolidation Act 2003.

109.—(1) The Principal Act is amended in paragraph 1 of Part 1of Schedule 2 in the definition of “group threshold”—25

(a) in subparagraph (a) by substituting “€250,000” for“€244,000”,

(b) in subparagraph (b) by substituting “€33,500” for“€24,400”, and

(c) in subparagraph (c) by substituting “€16,750” for30“€12,200”.

(2) The Principal Act is further amended—

(a) in paragraph 1 of Part 1 of Schedule 2 by substituting thefollowing for the definition of “threshold amount”:

“ ‘threshold amount’, in relation to the compu-35tation of tax on any aggregate of taxable valuesunder paragraph 3, means the group thresholdthat applies in relation to all of the taxable giftsand taxable inheritances included in thataggregate.”,40

and

189

Amendment ofSchedule 2B(qualifications forapplying for relieffrom stamp duty inrespect of transfersto young trainedfarmers) toPrincipal Act.

Modernisation ofstamping ofinstruments:introduction of self-assessment andconsequentialchanges, etc.

Interpretation (Part5).

Amendment ofSchedule 2(computation oftax) to PrincipalAct.

Amendment ofsection 2(interpretation) ofPrincipal Act.

Amendment ofprovisions relatingto discretionarytrusts.

(b) in the Table in Part 2 of Schedule 2 by substituting “30”for “25”.

(3) This section applies to gifts and inheritances taken on or after7 December 2011.

110.—(1) Section 2(1) of the Principal Act is amended by substi- 5tuting the following for paragraph (b) of the definition of “child”:

“(b) a child who is adopted under an adoption order withinthe meaning of section 3(1) of the Adoption Act2010 or the subject of an intercountry adoptioneffected outside the State and recognised under 10that Act;”.



(a) in section 2 by inserting the following after subsection (1):

“(1A) For the purposes of the definition of ‘discretion- 15ary trust’ in subsection (1), any entity which is similar inits effect to a discretionary trust shall be treated as a dis-cretionary trust irrespective of how it is described in theplace where it is established.

(1B) Any reference in this Act to trustees in relation to 20a discretionary trust shall be deemed to include personsacting in a similar capacity to trustees in relation to anentity referred to in subsection (1A).”,

(b) in section 15 by inserting the following after subsection (1):

“(1A) For the purposes of this section and section 20, 25where a discretionary trust is created under the will(including under a codicil to that will) of a deceased per-son property shall be deemed to be subject to the trust onthe date of death of that person.”,

(c) in section 18 in the definition of “relevant period” in sub- 30section (1) by inserting “and” at the end of paragraph (b)and by deleting paragraph (c),

(d) in section 18 by deleting the definition of “the appropriatetrust” in subsection (1) and by inserting the followingbefore the definition of “earlier relevant inheritance”: 35

“ ‘appropriate trust’, in relation to a relevant inheritance,means the trust by which that inheritance was deemed tobe taken;”,

(e) in section 18 by deleting the definition of “will trust rel-evant inheritance”, 40

(f) in section 18 by substituting the following for subsection(3):

“(3) Where, in the case of each earlier relevant inherit-ance, each settled relevant inheritance or each later rel-evant inheritance, as the case may be, taken from the same 45

190

disponer, one or more objects of the appropriate trustbecame beneficially entitled in possession before theexpiration of the relevant period to an absolute interest inthe entire of the property of which that inheritance con-sisted on and at all times after the date of that inheritance5(other than property which ceased to be subject to theterms of the appropriate trust by virtue of a sale orexchange of an absolute interest in that property for fullconsideration in money or money’s worth), then, inrelation to all such earlier relevant inheritances, all such10settled relevant inheritances or all such later relevantinheritances, as the case may be, the tax so chargeable iscomputed at the rate of 3 per cent.”,

and

(g) in section 21 by substituting the following for paragraph15(b):

“(b) (i) subject to subparagraph (ii), the valuationdate of the taxable inheritance is the rel-evant chargeable date,

(ii) where—20

(I) a charge for tax arises on a particulardate by reason of section 15 or section118 (in so far as that section relates toa provision repealed by this Act thatcorresponds to section 15), giving rise25to a taxable inheritance (in this sub-paragraph referred to as the ‘first tax-able inheritance’),

(II) on a later date, a charge for tax arisesunder or in consequence of the same30disposition by reason of section 20giving rise to a taxable inheritance (inthis subparagraph referred to as the‘second taxable inheritance’) compris-ing the same property or property35representing that property, and

(III) the valuation date of the first taxableinheritance is a date after the charge-able date of the second taxableinheritance,40

then the valuation date of the second tax-able inheritance is the same date as the val-uation date of the first taxableinheritance.”.

(2) This section applies on and from 8 February 2012.45


“(1A) In subsections (1B) and (1C) ‘arrangement’ includesany agreement, understanding, scheme, transaction or series oftransactions (whether or not legally enforceable).50

191

Amendment ofsection 36(dispositionsinvolving powers ofappointment) ofPrincipal Act.

Amendment ofprovisions relatingto heritageproperty.

Amendment ofsection 89(provisions relatingto agriculturalproperty) ofPrincipal Act.

Modernisation ofcapital acquisitionstax administration:miscellaneousamendments.

(1B) Notwithstanding subsection (1), where the exercise of,failure to exercise, or release of, a general power of appointmentform part of an arrangement the main purpose or one of themain purposes of which is the avoidance of tax, tax shall bechargeable as if the disposition were the disposition under which 5the power was created and the person who created the powerwere the disponer.

(1C) Where the grant of a general power of appointment inor over property to any person forms part of an arrangementthe main purpose or one of the main purposes of which is the 10avoidance of a charge to tax arising under sections 15(1) or20(1), the grant of that general power of appointment shall notprejudice any such charge to tax.”.

(2) This section applies to gifts and inheritances (includinginheritances referred to in sections 15(1) and 20(1) of the Principal 15Act) taken on or after 8 February 2012.

113.—(1) Section 77(3) of the Principal Act is amended by substi-tuting “the Chester Beatty Library, the Crawford Art Gallery Cork,the Irish Museum of Modern Art, the National Archives, theNational Concert Hall, the National Gallery of Ireland, the National 20Library of Ireland, the National Museum of Ireland,” for “theNational Gallery of Ireland, the National Museum of Science andArt or any other similar national institution,”.

(2) Section 78(7) of the Principal Act is amended by substituting“the Chester Beatty Library, the Crawford Art Gallery Cork, the 25Irish Museum of Modern Art, the National Archives, the NationalConcert Hall, the National Gallery of Ireland, the National Libraryof Ireland, the National Museum of Ireland,” for “the National Gal-lery of Ireland, the National Museum of Science and Art or anyother similar national institution,”. 30

(3) This section applies to sales occurring on or after 8 February2012.



“(1A) For the purpose of paragraph (a) of the defini- 35tion of ‘farmer’ in subsection (1), a loan secured on thedwelling-house referred to in that paragraph which is notused to purchase, repair or improve that dwelling-housewill not be treated as a debt or an encumbrance.”,

and 40

(b) in subsection (4) by deleting paragraph (c).

(2) This section applies to gifts and inheritances taken on or after8 February 2012.

115.—(1) Section 45AA of the Principal Act is amended—

(a) in subsection (1) by deleting “, and the solicitor referred 45to in section 48(10),”,

192


“(1A) The solicitor referred to in section 48(10) shallbe assessable and chargeable for the tax payable by theperson or persons referred to in paragraph (a) of that sub-section to the same extent that those persons are charge-5able to tax under section 11.”,

(c) in subsection (2) by inserting “and subsection (1A)” after“subsection (1)”,

(d) in subsections (2), (3) and (4) by inserting “and subsection(10)(a) of section 48” after “subsection (1)(a)” in each10place it occurs, and

(e) in subsection (4) by substituting “paragraph (b) of thatsubsection and subsection (10)(a) of section 48” for “par-agraph (b) of that subsection”.

(2) Section 46 of the Principal Act is amended by inserting the15following after subsection (2B):

“(2C) In the case of inheritances referred to in sections 15(1)and 20(1), returns shall be delivered and tax shall be paid within4 months of the valuation date of such inheritances.”.

(3) Section 51 of the Principal Act is amended by substituting the20following for subsection (5):

“(5) A payment of tax by an accountable person is treated asa payment on account of tax for the purposes of this section,notwithstanding that the payment may be conditional or that theassessment of tax is incorrect.”.25

(4) Section 57 of the Principal Act is amended in subsection (3)by substituting “commencing on 31 October in the year in whichthat tax was due to be paid in accordance with section 46(2A).” for“commencing on the valuation date or the date of payment of thetax concerned (where that tax has been paid within 4 months after30the valuation date).”.

(5) Part 1 of Schedule 2 to the Principal Act is amended by delet-ing paragraph 5.

(6) Notwithstanding subsection (4) of section 147 of the FinanceAct 2010, subsection (1)(p) of that section shall be deemed to have35applied on and from 14 June 2010 (being the appointed day for thepurposes of subsection (4)(b) of that section).

(7) Subsections (1) to (5) apply on and from 8 February 2012.


(a) in section 46(2A) by substituting “31 October” for“3040September” in each place,

(b) in section 51(2)(a) by substituting “1 November” for“1October” in each place, and

193

Amendment ofprovision relating topayment of tax andfiling return andconsequentialamendments.

Interpretation (Part6).

Amendment ofsection 886(obligation to keepcertain records) ofPrincipal Act.

Amendment ofsection 912A(information for taxauthorities in othercountries) ofPrincipal Act.

(c) in section 53A(1) by substituting “31 October” for “30September” in each place.

(2) This section applies on and from 8 February 2012.

PART 6

Miscellaneous 5

117.—In this Part “Principal Act” means the Taxes ConsolidationAct 1997.

118.—Section 886 of the Principal Act is amended—

(a) in subsection (4)(a) by substituting “Notwithstanding anyother law” for “Subject to paragraph (b)”, 10

(b) in subsection (4) by substituting the following for para-graph (b):

“(b) Paragraph (a) shall not require the retention oflinking documents and records in respect ofwhich the inspector notifies in writing the per- 15son who is required to retain them that reten-tion is not required.”,

(c) by inserting the following after subsection (4)—

“(4A) For the purposes of this section—

(a) where a company is wound up, the liquidator, 20and

(b) where a company is dissolved without theappointment of a liquidator, the last directors,including any person occupying the position ofdirector by whatever name called, of the 25company,

shall keep or retain the linking documents and records ofthe company for the period specified in subparagraph (i)or (ii), as appropriate, of subsection (4)(a).”,

and 30

(d) in subsection (5) by substituting “Any person who fails tocomply with subsection (2), (3), (4) or (4A)” for “Anyperson who fails to comply with subsection (2), (3) or(4)”.

119.—Section 912A of the Principal Act is amended— 35

(a) in subsection (2) by substituting “902A, 905,” for“902A,”, and


194

“(3) Where sections 902A, 905, 907 and 908 have effectby virtue only of this section, they shall have effect as ifthe references in those sections to—

(a) tax, were references to foreign tax, and

(b) any provision of the Acts, were references to5any provision of the law of a territory inaccordance with which foreign tax is chargedor collected.”.

120.—Section 851A of the Principal Act is amended—

(a) in subsection (1), in the definition of “the Acts”, by10inserting the following after paragraph (a):

“(aa) the Customs Acts,”,

and

(b) in subsection (7)(a) by substituting “taxpayer information”for “personal information”.15

121.—The Principal Act is amended—

(a) in section 891B(1) by deleting the definition of “collec-tive fund”,

(b) in section 891B(1) in paragraph (a) of the definition of“relevant payment” by deleting “, a collective fund”,20

(c) in section 891B(1) in the definition of “relevant person”—

(i) in paragraph (b) by substituting “financial institution,or” for “financial institution,”, and

(ii) by deleting paragraph (c),

(d) in section 891B(7)(b)(ii) by deleting “a person who does25not comply with”, and

(e) by inserting the following after section 891B:

“Returns ofcertaininformation byinvestmentundertakings.


(a) ‘investment undertaking’ has thesame meaning as in section30739B(1) but does not include acommon contractual fundwithin the meaning of section739I;

(b) ‘unit’ and ‘unit holder’ have the35same meanings respectively asin section 739B(1);

(c) ‘tax reference number’ has thesame meaning as in section891B(1).40

195

Amendment ofsection 851A(confidentiality oftaxpayerinformation) ofPrincipal Act.

Returns of certaininformation byinvestmentundertakings.

(2) A reference in this section to a regu-lation or regulations shall be construed as areference to a regulation or regulationsmade under subsection (3).

(3) The Revenue Commissioners, with 5the consent of the Minister for Finance,may by regulations provide that an invest-ment undertaking be required—

(a) to make to the Revenue Com-missioners a return of infor- 10mation relating to units of theinvestment undertaking con-cerned by reference to suchdate or dates, other than a datebefore 1 January 2012, as may 15be specified in the regulations,and

(b) subject to subsection (5)(a)(vi),to include in any such return thetax reference numbers of the 20unit holders at that time.

(4) Information in relation to units shallnot be included in a return to be madeunder regulations if information in relationto such units is included or would be liable 25to be included in a return made in accord-ance with Chapter 3A.

(5) For the purposes of this section—

(a) the provisions of subsection (4)of section 891B shall apply sub- 30ject to the following modifi-cations and any other neces-sary modifications:

(i) in paragraph (a) by substi-tuting ‘investment under- 35taking’ for ‘specifiedperson’;

(ii) in paragraph (d) by substi-tuting ‘the value of units’for ‘the kind or kinds of rel- 40evant payments’;

(iii) by substituting the followingfor paragraph (e):

‘(e) defining, for thepurposes of 45determining theunit holders orclasses of unit hol-ders to be includedin a return to be 50made under regu-lations, the unit

196

holders or classesof unit holders’;

(iv) by substituting the followingfor paragraph (f):

‘(f) determining for the5purposes of includ-ing unit holders ina return to bemade under regu-lations, the identity10and place of resi-dence or establish-ment of a unitholder’;

(v) in paragraph (g) by substi-15tuting ‘unit’ for ‘relevantpayment’;

(vi) in paragraph (h)—

(I) by substituting the fol-lowing for subpara-20graph (i):

‘(i) investmentundertakingsto obtain atax reference25numberfrom unitholders—

(I) withwhom30theyenterintocontrac-tual35relation-ships, or

(II) for whomtheyunder-40takeanytransaction,

on or after adate specified45in regulations,which shallnot be earlierthan the datesuch regu-50lations comeinto force, forthe purposesof including

197

Returns of paymenttransactions bypayment settlers.

that numberin a returnunder regu-lations, and’,

and 5

(II) in subparagraph (ii)—

(A) by substituting‘investmentundertaking’ for‘specified person’ 10in each place,

(B) by substituting‘unit holders’ for‘customers’ ineach place, and 15

(C) by deleting ‘wherethe relationship ortransaction maygive rise to a rel-evant payment’, 20

and

(vii) in paragraph (k) by substi-tuting ‘units and the unitholders’ for ‘relevant pay-ments and the persons to 25whom such payments weremade’,

and

(b) the provisions of subsections (6)and (7) of section 891B shall 30apply subject to the modifi-cation that references in thosesubsections to ‘person’, ‘rel-evant person’ or ‘specified per-son’, as the case may be, shall 35be construed, where the contextadmits, as references to ‘invest-ment undertaking’.

(6) Every regulation made shall be laidbefore Dáil Éireann as soon as may be after 40it is made and, if a resolution annulling theregulation is passed by Dáil Éireann withinthe next 21 days on which Dáil Éireann hassat after the regulation is laid before it, theregulation shall be annulled accordingly, 45but without prejudice to the validity of any-thing previously done thereunder.”.

122.—The Principal Act is amended by inserting the followingafter section 891C (inserted by section 121):

“891D.—(1) In this section— 50

198

‘authorised officer’ means an officer of the Revenue Commis-sioners authorised by them in writing to exercise the powersconferred by this section;

‘central organisation’ has the meaning assigned in the definitionof ‘electronic payment network’;5

‘electronic network transaction’ means any transaction which issettled through an electronic payment network;

‘electronic payment facilitator’ means any person, other than apayment settlement entity, acting on behalf of a payment settle-ment entity who submits instructions to transfer funds to the10account of the merchant to settle the reportable paymenttransaction;

‘electronic payment network’ means any agreement orarrangement—

(a) which involves the establishment of accounts with a15body (in this section referred to as a ‘centralorganisation’) by persons who—

(i) are unrelated to the central organisation,

(ii) provide goods or services, and

(iii) have agreed to settle transactions for the pro-20vision of such goods or services pursuant to suchagreement or arrangement,

(b) which provides for standards and mechanisms for sett-ling such transactions, and

(c) which guarantees persons providing goods or services25pursuant to such agreement or arrangement thatsuch persons will be paid for providing such goodsor services,

but does not include any agreement or arrangement which pro-vides for the issue of payment cards;30

‘electronic settlement organisation’ means the central organis-ation which has the contractual obligation to make payment tomerchants of electronic network transactions;

‘merchant’ means—

(a) in the case of a payment card transaction, any person35having an address in the State who accepts a pay-ment card as payment, and

(b) in the case of an electronic network transaction, anyperson having an address in the State who acceptspayment from an electronic settlement organisation40in settlement of such transaction;

‘merchant acquirer’ means the person who has the contractualobligation to make payment to merchants in settlement of pay-ment card transactions;

‘payment card’ means any card which is issued pursuant to an45agreement or arrangement which provides for—

199

(a) one or more issuers of such cards,

(b) a network of persons unrelated to each other, and tothe issuer, who agree to accept such cards as pay-ment, and

(c) standards and mechanisms for settling the trans- 5actions between the merchant acquirers and the per-sons who agree to accept such cards as payment,

and the acceptance as payment of any account number or otherindicators associated with a payment card shall be treated forthe purposes of this section in the same manner as accepting 10such payment card as payment;

‘payment card transaction’ means any transaction in which apayment card is accepted as payment;

‘payment settlement entity’ means—

(a) in the case of a payment card transaction, the mer- 15chant acquirer, and

(b) in the case of an electronic network transaction, theelectronic settlement organisation;

‘PPS Number’, in relation to an individual, means the individ-ual’s personal public service number (within the meaning of 20section 262 of the Social Welfare Consolidation Act 2005);

‘reportable payment transactions’ means, subject to regulations,any payment card transaction and any electronic networktransaction;

‘services’, in relation to an electronic payment network, includes 25making arrangements directly or indirectly for persons to makevoluntary payments with or without consideration for thebenefit, in whole or in part, of another person;

‘tax reference number’, in relation to a person, means—

(a) in the case of a person who is an individual, the indi- 30vidual’s PPS Number, and

(b) in any other case—

(i) the reference number stated on any return ofincome form or notice of assessment issued tothe person by a Revenue officer, or 35

(ii) the registration number of that person for thepurposes of the Value-Added Tax Acts.

(2) The Revenue Commissioners may by regulations providethat a payment settlement entity be required—

(a) to make to the Revenue Commissioners an electronic 40return for or by reference to such year or years,other than a year earlier than 2010, of reportablepayment transactions and such other information asmay be specified in the regulations, and

200

(b) subject to subsection (4)(b), to include in any suchreturn the tax reference numbers of merchantsincluded in the return.

(3) Without prejudice to the generality of subsection (2),regulations may, in particular, provide for—5

(a) determining the date by which a return required tobe made under the regulations shall be made to theRevenue Commissioners,

(b) prescribing the manner in which returns are to bemade,10

(c) specifying the type of reportable payment transactionsto be included in the return,

(d) imposing an obligation on payment settlement entitiesto request, on or after a date specified in regulations,a tax reference number from merchants, which date15shall not be earlier than the date such regulationscome into force, for the purposes of including thatnumber in a return under regulations,

(e) imposing an obligation on every merchant to providethe payment settlement entity concerned with the20relevant tax reference number upon request beingmade by such payment settlement entity, and

(f) specifying the details relating to the reportable pay-ment transactions to be included in the return,including, but not limited to, the following—25

(i) account and reference numbers,

(ii) information concerning the business or serviceconducted by the merchant,

(iii) information relating to the terminals used by themerchant, such as the number of terminals in30use, the serial numbers of such terminals andthe location of such terminals,

(iv) information relating to the merchant, includingname, address, email address and contactnumbers, and35

(v) bank account information of merchants to andfrom which funds are transferred by the pay-ment settlement entity.

(4) (a) A payment settlement entity shall make all reason-able efforts to obtain from a merchant that person’s40tax reference number and the merchant shall provideto the payment settlement entity his or her tax refer-ence number.

(b) Where the tax reference number provided for the pur-poses of this section is an individual’s PPS Number,45the payment settlement entity shall only use thatnumber (as so provided) for the purpose of includingit in the return to be made under subsection (2) andfor no other purpose.

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Amendment ofsection 898K(specialarrangements forcertain securities) ofPrincipal Act.

Amendment ofsection 1077E(penalty fordeliberately orcarelessly makingincorrect returns,etc.) of PrincipalAct.

(5) An authorised officer may at all reasonable times enterany premises or place of business of a payment settlement entityfor the purposes of—

(a) determining whether—

(i) information included in a return made by a pay- 5ment settlement entity was correct and com-plete, or

(ii) information not included in such a return wascorrectly not so included,

or 10

(b) examining the procedures put in place by that pay-ment settlement entity for the purposes of ensuringcompliance with that person’s obligations under thissection.

(6) (a) Section 898O shall apply to— 15

(i) a failure by a payment settlement entity todeliver a return, and to each and every such fail-ure, and

(ii) the making of an incorrect or incomplete return,

as it applies to a failure to deliver a return or to the 20making of an incorrect or incomplete return referredto in section 898O.

(b) A payment settlement entity which does not complywith—

(i) the requirements of an authorised officer in the 25exercise or performance of the officer’s powersor duties under this section or under regu-lations, or

(ii) any requirement imposed on the payment settle-ment entity by regulations made under subsec- 30tion (2),

shall be liable to a penalty of €3,000.”.

123.—The Principal Act is amended in section 898K—

(a) by substituting the following for subsection (3):

“(3) This section shall cease to apply as on and from 31 35December 2011.”,

and

(b) by deleting subsection (4).

124.—Section 1077E of the Principal Act is amended in subsection(1), in the definition of “the Acts”, by substituting “Parts 18A, 18B, 4018C and 18D” for “Parts 18A and 18B”.

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125.—Part 42 of the Principal Act is amended—

(a) in section 960A by substituting “Chapters 1B, 1C and 1D”for “Chapters 1B and 1C”,

(b) in section 960B by substituting “Chapters 1B, 1C and 1D”for “Chapters 1B and 1C”, and5

(c) by inserting the following after Chapter 1C:

“Chapter 1D

Power to require statement of affairs, security, etc.

960R.—(1) In this section—

‘asset’ includes any interest in an asset;10

‘prescribed’ means prescribed by the Revenue Com-missioners;

‘specified date’, in relation to a notice under subsection(3), means the date specified in the notice.

(2) For the purposes of this section, the cost of acquis-15ition to a person of an asset shall include—

(a) the amount or value of the consideration, inmoney or money’s worth, given by the personor on the person’s behalf for the acquisition ofthe asset, together with the incidental costs to20the person of the acquisition or, if the asset wasnot acquired by the person, any expenditureincurred by the person in acquiring the asset,and

(b) the amount of any expenditure incurred on the25asset by the person or on that person’s behalffor the purpose of enhancing the value of theasset, being expenditure reflected in the stateor nature of the asset at the specified date, andany expenditure incurred by the person in30establishing, preserving or defending the per-son’s title to, or to a right over, the asset.

(3) Where tax is due and outstanding by a person andthat person has failed to discharge that tax, the Collector-General may require—35

(a) that person, by notice in writing given to thatperson, and

(b) where that person and his or her spouse or civilpartner are jointly assessed to income taxunder section 1017 or 1031C, that person’s40spouse or civil partner, by notice in writinggiven to the spouse or civil partner,

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Power of Collector-General to requirecertain persons toprovide return ofproperty.

to deliver to the Collector-General within such time speci-fied in the notice or within such period as the Collector-General may allow a statement of affairs in the prescribedform as at the date specified in the notice.

(4) For the purposes of subsection (3), a request in writ- 5ing by the Collector-General to clarify any matter con-tained in the statement of affairs shall be deemed to be arequirement to deliver a statement of affairs.

(5) In this section ‘statement of affairs’, in relation to anotice under subsection (3), means— 10

(a) where the person to whom notice is given is act-ing otherwise than in a representative capacityor as a trustee, a statement of all the assetswherever situated to which that person is ben-eficially entitled on the specified date and all 15the liabilities for which that person is liable onthe specified date,

(b) where the person to whom notice is given is aperson (‘the first-mentioned person’) acting ina representative capacity for a person (‘the 20second-mentioned person’), a statement of allthe assets wherever situated to which thesecond-mentioned person is beneficiallyentitled which give rise to tax in respect ofwhich the first-mentioned person is liable in a 25representative capacity or are assets in respectof which the first-mentioned person performedfunctions or duties in a representative capacityand all the liabilities for which the first-men-tioned person is liable on the specified date, 30

(c) where the person to whom notice is given is atrustee of a trust, a statement of all the assetsand liabilities comprised in the trust on thespecified date, or

(d) where the person to whom notice is given is the 35spouse or civil partner referred to in section(3)(b), a statement of all assets wherever situ-ated to which that spouse or civil partner isbeneficially entitled on the specified date andall the liabilities for which that spouse or civil 40partner is liable on the specified date.

(6) Any assets to which a minor child of, or a minorchild of the civil partner of, the person referred to in para-graph (a) or (b) of subsection (3) is beneficially entitledshall be included in that person’s statement of affairs 45under this section where—

(a) such assets at any time before their acquisitionby the minor child were disposed of by thatperson whether to that minor child or not, or

(b) the consideration for the acquisition of such 50assets by the minor child was provided directlyor indirectly by that person.

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(7) A statement of affairs delivered under this sectionshall contain in respect of each asset included in thestatement—

(a) a full description,

(b) its location on the specified date,5

(c) the cost of acquisition to the person beneficiallyentitled to that asset,

(d) the date of acquisition,

(e) if it was acquired otherwise than by means of abargain at arm’s length, the name and address10of the person from whom it was acquired andthe consideration, if any, given to that personin respect of its acquisition, and

(f) details of all policies of insurance (if any)whereby the risk of any kind of damage or15injury, or the loss or depreciation of the assetis insured.

(8) A statement of affairs delivered under this sectionshall, in the case of an asset which is an interest other thanan absolute interest, contain particulars of the title under20which the beneficial entitlement arises.

(9) A statement of affairs delivered under this sectionshall be signed by the person by whom it is delivered andshall include a declaration by that person that it is to thebest of that person’s knowledge, information and belief25correct and complete.

(10) The Collector-General or an officer nominated bythe Revenue Commissioners may require the declarationreferred to in subsection (9) to be made on oath.”.

126.—(1) The Principal Act is amended by inserting the following30after section 960R (inserted by section 125):

“960S.—(1) In this section—

‘business’ means a business that was or is carried on by a com-pany or partnership and includes a business that was or is carriedon by an individual;35

‘connected person’ means a person connected with another per-son within the meaning of section 10;

‘management of the business’ includes acting in a capacity suchthat the person was or is able, directly or indirectly, to controlthe management of that business either as a connected person40or otherwise;

‘tax’ means—

(a) income tax deductible in accordance with Chapter 4of Part 42 and any regulations made under thatChapter,45

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Security for certaintaxes.

Order to producedocuments orprovideinformation.

(b) tax deductible in accordance with Chapter 2 of Part18 and any regulations made under that Chapter,

(c) universal social charge chargeable in accordance withPart 18D, or

(d) value-added tax chargeable in accordance with the 5Value-Added Tax Acts.

(2) The Collector-General may require a person carrying ona business to give security, or further security, of such amountand in such form as the Collector-General considers appropriatefor the payment of tax that is, or may become, due from that 10person—

(a) where the person, in relation to a business that hasceased to trade, was involved in the management ofthe business and tax arose while the business wastrading which has not been paid in full, or 15

(b) in relation to the current business, where tax due tobe paid by that person has not been paid with 30days of the due date for payment of the tax.

(3) Where a requirement under subsection (2) arises, the Col-lector-General shall cause a notice in writing to that effect to be 20served on the person.

(4) Where a person is served with a notice in accordance withsubsection (3), it shall be an offence for that person to engagein business until such security, or further security, is provided tothe Collector-General. 25

(5) Where a notice is served on a person in accordance withsubsection (3), the person may, on giving notice to the RevenueCommissioners within the period of 30 days from the date ofthe service of the notice, appeal the requirement of giving anysecurity under subsection (2) to the Appeal Commissioners. 30

(6) Where a person gives a notice of appeal in accordancewith subsection (5), subsection (4) shall not apply until theAppeal Commissioners determine the matter.”.

(2) Section 1078(2) of the Principal Act is amended by insertingthe following after paragraph (f): 35

“(fa) fails to comply with the requirement in section960S(4),”.

127.—The Principal Act is amended by inserting the followingafter section 908D:

“Order toproducedocuments orprovideinformation.

908E.—(1) In this section and in section 908F— 40

‘authorised officer’ means an officer of theRevenue Commissioners authorised by them inwriting to exercise the powers conferred by thissection;

‘relevant offence’ means— 45

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(a) an offence under section 186 of the Cus-toms Consolidation Act 1876,

(b) an offence under section 139(5) of theFinance Act 1992,

(c) an offence under section 1056, 1078 or51078A,

(d) an offence under subsection (1A), (1B)or (3) of section 102 of the FinanceAct 1999,

(e) an offence under section 119 of the Fin-10ance Act 2001,

(f) an offence under section 79 of the Fin-ance Act 2003,

(g) an offence under section 78 of the Fin-ance Act 2005.15

(2) For the purposes of the investigation of arelevant offence, an authorised officer may applyto a judge of the District Court for an order underthis section in relation to—

(a) the making available by a person of any20particular documents or documents ofa particular description, or

(b) the provision by a person of particularinformation by answering questions ormaking a statement containing the25information,

or both.

(3) On an application under subsection (2), ajudge of the District Court, if satisfied by infor-mation on oath of the authorised officer making30the application that—

(a) there are reasonable grounds for sus-pecting that a person has possession orcontrol of particular documents ordocuments of a particular description,35

(b) there are reasonable grounds for believ-ing that the documents are relevant tothe investigation of the relevantoffence concerned,

(c) there are reasonable grounds for sus-40pecting that the documents (or someof them) may constitute evidence of orrelating to the commission of that rel-evant offence, and

(d) there are reasonable grounds for believ-45ing that the documents should be pro-duced or that access to them should begiven, having regard to the benefit

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likely to accrue to the investigation andany other relevant circumstances,

may order the person to—

(i) produce the documents to an authorisedofficer to take away and, if the judge 5considers it appropriate, to identifyand categorise the documents to be soproduced in the particular manner (ifany) sought in the application or insuch other manner as the judge may 10direct and to produce the documents inthat manner, or

(ii) give such an officer access to them,

either immediately or within such period as theorder may specify. 15

(4) On an application under subsection (2), ajudge of the District Court, if satisfied by infor-mation on oath of the authorised officer makingthe application that—

(a) there are reasonable grounds for sus- 20pecting that a person has informationwhich he or she has failed or refusedwithout reasonable excuse to give tothe authorised officer having beenrequested to do so, 25

(b) there are reasonable grounds for believ-ing that the information is relevant tothe investigation of the relevantoffence concerned,

(c) there are reasonable grounds for sus- 30pecting that the information (or someof it) may constitute evidence of orrelating to the commission of that rel-evant offence, and

(d) there are reasonable grounds for believ- 35ing that the information should be pro-vided, having regard to the benefitlikely to accrue to the investigation andany other relevant circumstances,

may, subject to subsection (5), order the person 40to—

(i) provide the information to an author-ised officer by answering the questionsspecified in the application or makinga statement setting out the answers to 45those questions or both, and

(ii) make a declaration of the truth of theanswers to such questions,

either immediately or within such period as theorder may specify. 50

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(5) The references in subsections (2)(b) and (4)to information that may be the subject of an orderunder this section are references to informationthat the person concerned has obtained in theordinary course of business.5

(6) An order under this section relating todocuments in any place may, on the application ofthe authorised officer concerned under subsection(2), require any person, being a person whoappears to the judge of the District Court to be10entitled to grant entry to the place, to allow anauthorised officer to enter it so as to obtain accessto the documents.

(7) Where the documents concerned are not inlegible form, an order under this section shall have15effect as an order—

(a) to give to an authorised officer any pass-word necessary to make the documentslegible and comprehensible,

(b) otherwise to enable the authorised20officer to examine the documents in aform in which they are legible andcomprehensible, or

(c) to produce the documents to the auth-orised officer in a form in which they25can be removed and in which they are,or can be made, legible and compre-hensible.

(8) An order under this section—

(a) in so far as it may empower an author-30ised officer to take away a document,or to be given access to it, shall alsohave effect as an order empoweringthe officer to make a copy of the docu-ment and to take the copy away,35

(b) shall not confer any right to productionof, or access to, any document subjectto legal professional privilege, and

(c) shall have effect notwithstanding anyother obligation as to secrecy or other40restriction on disclosure of informationimposed by statute or otherwise.

(9) (a) Where a document is, or may be, takenaway by an authorised officer pursuantto an order under this section, any per-45son to whom the order relates, or whois affected by the order, may requestthe authorised officer to permit theperson to retain the document, or tohave it returned to the person, while50the officer takes or retains a copy of it.

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(b) The authorised officer concerned mayaccede to a request under paragraph(a) but only if he or she is satisfiedthat—

(i) the document is required by the 5person for the purposes of his orher business or for some otherlegitimate purpose, and

(ii) the person undertakes in writing—

(I) to keep the document safely 10and securely, and

(II) when requested by the author-ised officer to do so, to fur-nish it to the authorisedofficer in connection with any 15criminal proceedings forwhich it is required.

(c) A failure or refusal by a person to com-ply with an undertaking given by himor her under paragraph (b)(ii) shall not 20prejudice the admissibility in evidencein any criminal proceedings of a copyof the document concerned.

(10) Any documents taken away by an author-ised officer pursuant to an order under this section 25may be retained by the officer for use as evidencein any criminal proceedings.

(11) A statement or admission made by a per-son pursuant to an order under this section shallnot be admissible as evidence in proceedings 30brought against the person for an offence (otherthan an offence under subsection (16), (17) or(18)).

(12) (a) An order under this section providingthat documents be produced, or that 35access to them be given, by a personmay, if the judge of the District Courtconsiders it appropriate to do so,require the person to furnish a certifi-cate to an authorised officer 40affirming—

(i) the authenticity of the documents,and

(ii) in the case of documents in non-legible form that are reproduced 45in legible form, the system andmanner of that reproduction,

either when the documents are pro-duced, or access to them is given, or atsuch time thereafter as may be specified 50in the order.

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(b) The Revenue Commissioners may makeregulations for the purposes of thissubsection specifying the manner inwhich documents of different types orclasses, or copies of them, may be5authenticated.

(13) Where a person who produces documentspursuant to an order under this section claims alien on those documents or some of them, the pro-duction shall be without prejudice to the lien.10

(14) A judge of the District Court may, on theapplication of any person to whom an order underthis section relates or an authorised officer, varyor discharge the order.

(15) A judge of the District Court may, on the15application of any person who is affected by anorder under this section whose request for thereturn of documents under subsection (9) has notbeen acceded to, make an order regarding thereturn of the documents concerned to that person20if the judge considers it appropriate to do so sub-ject to such conditions (if any) as the judge maydirect.

(16) A person who without reasonable excusefails or refuses to comply with an order under this25section shall be guilty of an offence and shall beliable—

(a) on summary conviction, to a class A fineor imprisonment for a term notexceeding 12 months or both, or30

(b) on conviction on indictment, to a fine orimprisonment for a term not exceeding2 years or both.

(17) A person who, in purported compliancewith an order under this section provides infor-35mation or makes a statement which is false or mis-leading in a material particular knowing it to be sofalse or misleading, or being reckless as to whetherit is so, shall be guilty of an offence and shall beliable—40

(a) on summary conviction, to a class A fineor imprisonment for a term notexceeding 12 months or both, or

(b) on conviction on indictment, to a fine orimprisonment for a term not exceeding452 years or both.

(18) A person who without reasonable excusefails or refuses to comply with an undertakinggiven by him or her under subsection (9)(b)(ii)shall be guilty of an offence and shall be liable on50summary conviction to a class A fine or imprison-ment for a term not exceeding 12 months or both.

211

(19) An application for an order under subsec-tion (2) shall be made to a judge of the DistrictCourt who is assigned to the district court districtin which the documents sought are located or theperson from whom the documents or information 5are sought ordinarily resides or carries on any pro-fession, business or occupation or, if that person isa company (within the meaning of the CompaniesActs), the district court district in which the regis-tered office of the company is situated or the com- 10pany carries on any business.

(20) Nothing in this section shall affect theoperation of a provision in any other enactmentunder which a court may order a person toproduce any documents to a person in connection 15with the investigation of an offence.

Privilegedlegal material.

908F.—(1) In this section ‘privileged legalmaterial’ means a document which, in the opinionof the court concerned, a person is entitled torefuse to produce or to give access to it on the 20grounds of legal professional privilege.

(2) If a person refuses to produce a documentor give access to it pursuant to an order of a judgeof the District Court under section 908E on thegrounds that the document is privileged legal 25material, an authorised officer may apply to ajudge of that Court for a determination as towhether the document is privileged legal material.

(3) A person who refuses to produce a docu-ment or give access to it pursuant to an order of a 30judge of the District Court under section 908E onthe grounds that the document is privileged legalmaterial may apply to a judge of the District Courtfor a determination as to whether the document isprivileged legal material. 35

(4) A person who refuses to produce a docu-ment or give access to it pursuant to an order of ajudge of the District Court under section 908E onthe grounds that the document is privileged legalmaterial shall preserve the document and keep it 40in a safe and secure place pending the determi-nation of an application under subsection (2) or(3) and shall, if it is so determined not to be privi-leged legal material, produce it in accordance withthe order. 45

(5) Pending the making of a final determinationof an application under subsection (2) or (3), thejudge of the District Court may give such interimor interlocutory directions as the judge considersappropriate including, without prejudice to the 50generality of the foregoing, in a case in which thevolume of documents that are the subject of theapplication is substantial, directions as to theappointment of a person with suitable legal quali-fications possessing the level of experience, and 55the independence from any interest falling to bedetermined between the parties concerned, that

212

the judge considers to be appropriate for the pur-pose of—

(a) examining the documents, and

(b) preparing a report for the judge with aview to assisting or facilitating the5judge in the making by him or her ofhis or her determination as to whetherthe documents are privileged legalmaterial.

(6) An application under subsection (2), (3) or10(5) may, if the judge of the District Court sodirects, be heard otherwise than in public.

(7) Notice of an application under subsection(2) shall be served on the person to whom theorder concerned relates and notice of an appli-15cation under subsection (3) shall be served on theauthorised officer who seeks to compel the pro-duction of the document concerned or to be givenaccess to it.

(8) An appeal against the determination of a20judge of the District Court under this section shalllie to the Circuit Court and no further appeal shalllie from an order of the Circuit Court made on anappeal under this section.

(9) Rules of court may make provision for the25expeditious hearing of applications to a judge ofthe District Court, and any appeals against thedeterminations of such a judge, under thissection.”.

128.—(1) Part 37 of the Principal Act is amended—30

(a) in section 865(1)(a) by substituting the following for thedefinition of “the Acts”:

“ ‘Acts’ means the Tax Acts, the Capital GainsTax Acts, Part 18A, Part 18C and Part 18D andinstruments made thereunder;”,35

(b) in section 865(1)(a) by substituting the following for thedefinition of “tax”:

“ ‘tax’ means any income tax, corporation tax,capital gains tax, income levy, domicile levy oruniversal social charge and includes—40

(i) any interest, surcharge or penalty relatingto any such tax, levy or charge,

(ii) any sum arising from the withdrawal orclawback of a relief or an exemption relat-ing to any such tax, levy or charge,45

(iii) any sum required to be deducted or with-held by any person and paid or remitted

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Repayments andoffsets of tax.

to the Revenue Commissioners or the Col-lector-General, as the case may be, and

(iv) any amount paid on account of any suchtax, levy or charge or paid in respect ofany such tax, levy or charge;”, 5

(c) in section 865(1)(b) by substituting the following for sub-clauses (A) and (B) of clause (I):

“(A) would arise out of the assessmentto tax, made at the time the state-ment or return was furnished, on 10foot of the statement or return,or

(B) would have arisen out of theassessment to tax, that wouldhave been made at the time the 15statement or return was fur-nished, on foot of the statementor return if an assessment to taxhad been made at that time,”,

and 20

(d) by inserting the following new section after section 865A:

“No offsetwhererepaymentprohibited.

865B.—(1) In this section—

‘Acts’ means—

(a) the statutes relating to the dutiesof excise and to the manage- 25ment of those duties,

(b) the Tax Acts,

(c) the Capital Gains Tax Acts,

(d) Parts 18A, 18C and 18D,

(e) the Capital Acquisitions Tax 30Consolidation Act 2003 and theenactments amending orextending that Act,

(f) the Stamp Duties ConsolidationAct 1999 and the enactments 35amending or extending thatAct,

(g) the Value-Added Tax Consoli-dation Act 2010 and the enact-ments amending or extending 40that Act, and

(h) any instruments made under anyof the statutes and enactmentsspecified in paragraphs (a) to(g); 45

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‘relevant period’, in relation to a repay-ment, means—

(a) in the case of corporation tax, theaccounting period of the com-pany in respect of which the5repayment arises,

(b) in the case of income tax, capitalgains tax, income levy, universalsocial charge or domicile levy,the year of assessment in10respect of which the repaymentarises,

(c) in the case of stamp duties, theyear of assessment or account-ing period, as the case may be,15within which falls the event inrespect of which the repaymentarises,

(d) in the case of gift tax or inherit-ance tax, the year of assessment20or accounting period, as thecase may be, within which fallsthe latest of the dates referredto in section 57(3) of the CapitalAcquisitions Tax Consolidation25Act 2003 and in respect ofwhich the repayment arises,

(e) in the case of excise duty, theyear of assessment or account-ing period, as the case may be,30within which falls the act orevent in respect of which therepayment arises, and

(f) in the case of value-added tax,the year of assessment or35accounting period, as the casemay be, within which falls thetaxable period in respect ofwhich the repayment arises;

‘repayment’ includes a refund;40

‘tax’ means any income tax, corporationtax, capital gains tax, value-added tax,excise duty, stamp duty, gift tax, inheritancetax, income levy, domicile levy or universalsocial charge and includes—45

(a) any interest, surcharge or penaltyrelating to any such tax, duty,levy or charge,

(b) any sum arising from the with-drawal or clawback of a relief or50an exemption relating to anysuch tax, duty, levy or charge,

215

(c) any sum required to be deductedor withheld by any person andpaid or remitted to the RevenueCommissioners or the Collec-tor-General, as the case may 5be, and

(d) any amount paid on account ofany such tax, duty, levy orcharge or paid in respect of anysuch tax, duty, levy or charge; 10

‘taxable period’ has the same meaning as insection 2 of the Value-Added Tax Consoli-dation Act 2010.

(2) Subject to subsections (3) and (4),where a repayment of any tax cannot be 15made to a person by virtue of the oper-ation of—

(a) section 865,

(b) section 105B of the Finance Act2001, 20

(c) section 99 of the Value-AddedTax Consolidation Act 2010,

(d) section 159A of the StampDuties Consolidation Act 1999,

(e) section 57 of the Capital Acquis- 25itions Tax Consolidation Act2003, or

(f) any other provision of any ofthe Acts,

then, notwithstanding any other enactment 30or rule of law, that repayment shall not beset against any other amount of tax due andpayable by, or from, that person.

(3) Where a repayment of tax cannot bemade to a person in respect of a relevant 35period, it may be set against the amount oftax to which paragraph (a) of subsection (4)applies which is due and payable by theperson in the circumstances set out in para-graph (b) of that subsection. 40

(4) (a) The amount of tax to which thisparagraph applies is theamount, or so much of theamount, of tax that is due andpayable by the person in respect 45of the relevant period as doesnot exceed the amount of therepayment that cannot be madeto the person in respect of thatrelevant period. 50

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(b) The circumstances set out in thisparagraph are where tax is dueand payable in respect of therelevant period by virtue of anassessment that is made or5amended, or any other actionthat is taken for the recovery oftax, at a time that is 4 years ormore after the end of the rel-evant period.10

(5) No tax shall be set against any otheramount of tax except as is provided for bythe Acts.”.

(2) The Stamp Duties Consolidation Act 1999 is amended insection 159B by substituting the following for subsection (6):15

“(6) Except as provided for by this Act or section 941 of theTaxes Consolidation Act 1997 as it applies for the purposes ofstamp duties, the Commissioners shall not repay an amount ofduty paid to them or pay interest in respect of an amount ofduty paid to them.”.20

(3) The Capital Acquisitions Tax Consolidation Act 2003 isamended in section 57 by substituting the following for subsection(9):

“(9) Except as provided for by this Act or by section 941 ofthe Taxes Consolidation Act 1997 as it applies for the purposes25of capital acquisitions tax, the Commissioners shall not repay anamount of tax paid to them or pay interest in respect of anamount of tax paid to them.”.

(4) The Value-Added Tax Consolidation Act 2010 is amended insection 105(6)(b) by substituting “section 941 of the Taxes Consoli-30dation Act 1997 as it applies for the purposes of value-added tax”for “any provision of any other enactment”.

(5) This section shall apply as respects any tax (within the mean-ing of section 865B (inserted by subsection (1)(d)) of the PrincipalAct) paid or remitted to the Revenue Commissioners or the Collec-35tor-General, as the case may be, whether before, on or after thepassing of this Act.

129.—(1) The Principal Act is amended in the manner and to theextent specified in Schedule 4.

(2) The Principal Act is amended by deleting Parts 39 and 41.40

(3) Subject to subsections (4) and (5), this section takes effect onand from 1 January 2013.

(4) This section applies—

(a) in the case of a chargeable period (within the meaning ofsection 321(2) of the Principal Act) which is an account-45ing period of a company, as respects chargeable periodsthat start on or after 1 January 2013, and

217

Modernisation ofDirect TaxesAssessing Rulesincluding rules forSelf Assessment.

Amendment ofsection 811(transactions toavoid liability totax) of PrincipalAct.

Miscellaneousamendmentsrelating toadministration.

(b) in a case other than that referred to in paragraph (a), asrespects the year of assessment 2013 and subsequentyears of assessment.

(5) This section does not affect the application of the provisionsof the Principal Act, which are amended or deleted by this section, 5as respects chargeable periods prior to those referred to in subsec-tion (4).


“(5A) (a) In this subsection— 10

‘assessment’ includes a first assessment, an additionalassessment, an additional first assessment and an esti-mate or estimation;

‘amendment’, in relation to an assessment, includesthe adjustment, alteration or correction of the 15assessment.

(b) Where the opinion of the Revenue Commissioners,that a transaction is a tax avoidance transaction,becomes final and conclusive, then for the purposesof giving effect to this section, any time limit pro- 20vided for by Part 41, or by any other provision of theActs, on the making or amendment of an assessmentor on the requirement or liability of a person to paytax or to pay additional tax—

(i) shall not apply, and 25

(ii) shall not affect the collection and recovery of anyamount of tax or additional tax that becomesdue and payable.”.

(2) (a) Subsection (1) applies to any assessment to tax or anyamendment of any assessment to tax which is made, on 30or after 28 February 2012, so that the tax advantageresulting from a tax avoidance transaction, in respect ofwhich a notice of opinion has become final and conclus-ive, is withdrawn from or denied to any personconcerned. 35

(b) For the purposes of paragraph (a), “assessment”, “amend-ment”, “tax advantage”, “tax avoidance transaction”,“notice of opinion” and “final and conclusive” shall beread in accordance with section 811 of the Principal Act.

131.—(1) The enactments specified in Schedule 5 are amended to 40the extent and manner specified in paragraphs 1 to 5 of, and theTable to, that Schedule.

(2) (a) Subject to paragraph (b), this section applies on and fromthe date of passing of this Act.

(b) Subparagraphs (c), (d), (e) and (f) of paragraph 2 and sub- 45paragraphs (a) and (c) of paragraph 3 of Schedule 5 applyas respects a person appointed after the date of passingof this Act.

218

132.—Section 195 of the Principal Act is amended by inserting thefollowing after subsection (15):

“(16) (a) The Revenue Commissioners may publish, or causeto be published, the name of an individual who is thesubject of a determination under subsection (2).5

(b) Publication under paragraph (a) may, as appropriate,include the title or category of the work of anindividual.”.

133.—Section 884 of the Principal Act is amended—

(a) in subsection (2) by substituting the following for subpara-10graph (aa):

“(aa) such information, accounts, statements, reportsand further particulars—

(i) relevant to the tax liability of the com-pany, or15

(ii) otherwise relevant to the application of theCorporation Tax Acts to the company,

as may be required by the notice or specified inthe prescribed form in respect of the return,”,

and20


“(2A) In the case of a company which is required—

(a) to deliver a return under this section for aperiod, and

(b) under the Companies Act 1963 to prepare or25make out accounts for a period consisting of orincluding the whole of that period,

the authority to require the delivery of accounts as partof the return is limited to such accounts, containing suchinformation and having annexed to them such documents,30as are required to be prepared or made out under thatAct.”.


(a) in section 216A(3A) by substituting “a child of the individ-ual or of the civil partner of the individual” for “a child35of the individual”,

(b) in section 286A(3) by substituting “on the death of his orher spouse or civil partner, and that spouse or civil part-ner” for “on the death of his or her spouse, and thatspouse”,40

219

Amendment ofsection 195(exemption ofcertain earnings ofwriters, composersand artists) ofPrincipal Act.

Amendment ofsection 884 (returnsof profits) ofPrincipal Act.

Miscellaneousamendments: civilpartners.

(c) in section 462(2)(b) by substituting “in the case of civilpartners who are not living separately” for “in the caseof civil partners where they are not living separatelyand apart”,

(d) in section 604(11) by substituting the following for para- 5graph (a):

“(a) In this subsection ‘dependent relative’, inrelation to an individual, means a relative ofthe individual, or of the wife or husband of theindividual, who is incapacitated by old age or 10infirmity from maintaining himself or herself,or a person, whether or not he or she is so inca-pacitated, and—

(i) who is the widowed father or widowedmother of the individual or of the wife or 15husband of the individual, or

(ii) who is the father or mother of the individ-ual or of the wife or husband of the indi-vidual and is a surviving civil partner whohas not subsequently married or entered 20into another civil partnership.”,

(e) in section 784A(4)(b)(ii) by substituting “any child of theindividual or any child of the civil partner of the individ-ual” for “any child of the individual”,

(f) in section 787K(1)(c)(iv) by substituting “widow, widower 25or surviving civil partner” for “widow or widower”,

(g) in section 1031A(2) by substituting “living separately” for“living separately and apart”, and

(h) in section 1031J(1) by substituting the following for thedefinition of “maintenance arrangement”: 30

“ ‘maintenance arrangement’ means—

(a) an order of a court under Part 5 or 12 of theCivil Partnership and Certain Rights and Obli-gations of Cohabitants Act 2010, or

(b) a trust, covenant, agreement, arrangement or 35any other act giving rise to a legally enforce-able obligation and made or done in consider-ation or in consequence of—

(i) the dissolution or annulment of a civil part-nership, or 40

(ii) living separately in the circumstancesreferred to in section 1031A(2),

and a maintenance arrangement relates to the civil part-nership in consideration or in consequence of the dissol-ution or annulment of which, or of the living separately in 45the circumstances referred to in section 1031A(2) towhich, the maintenance arrangement was made or arises;”.

220

(2) The Capital Acquisitions Tax Consolidation Act 2003 isamended—

(a) in paragraph 7(3)(a)(ii) of Part 1 of Schedule 2 by substi-tuting “any spouse or civil partner of the disponer” for“any spouse of the disponer”, and5

(b) in paragraph 7(3)(b)(ii) of Part 1 of Schedule 2 by substi-tuting “any spouse or civil partner of the disponer” for“any spouse of the disponer”.

(3) (a) Subsection (1) (other than paragraph (a)) shall have effectas if it had come into operation for the year of assessment10(within the meaning of the Income Tax Acts and theCapital Gains Tax Acts) 2011 and each subsequent yearof assessment.

(b) Subsection (1)(a) shall apply to relevant sums (within themeaning of section 216A(1) of the Principal Act) arising15to an individual on or after 8 February 2012.

(c) Subsection (2) shall have effect as if it had come into oper-ation as respects a gift (within the meaning of the CapitalAcquisitions Tax Consolidation Act 2003) or an inherit-ance (within that meaning) taken on or after 1 January202011.

135.—Section 161 of the Finance Act 2010 is amended by substitut-ing the following for subsection (10):

“(10) This section applies for the years of assessment 2010and 2011.”.25

136.—(1) Section 531AA(1) of the Principal Act is amended inparagraph (a) of the definition of “relevant individual” by deleting“, and is a citizen of,”.

(2) This section applies to domicile levy chargeable for the year2012 and subsequent years.30

137.—(1) Schedule 24A to the Principal Act is amended—

(a) in Part 1—

(i) by inserting the following between paragraphs 1Aand 1:

“1AA. The Double Taxation Relief (Taxes on35Income and on Capital) (Republic ofArmenia) Order 2012 (S.I. No. 21 of2012).”,

(ii) by inserting the following after paragraph 14:

“14A. The Double Taxation Relief (Taxes on40Income and on Capital) (Federal Republicof Germany) Order 2012 (S.I. No. 22 of2012).”,

(iii) by inserting the following after paragraph 31:

221

Cesser of section161 of Finance Act2010.

Amendment ofsection 531AA(interpretation (Part18C)) of PrincipalAct.

Amendment ofSchedule 24A(arrangementsmade by theGovernment withthe government ofany territoryoutside the State inrelation to affordingrelief from doubletaxation andexchanginginformation inrelation to tax) toPrincipal Act.

Miscellaneoustechnicalamendments inrelation to tax.

Capital ServicesRedemptionAccount.

“31A. The Double Taxation Relief (Taxes onIncome and Capital Gains) (Republic ofPanama) Order 2012 (S.I. No. 25 of2012).”,

and 5

(iv) by inserting the following between paragraphs 35and 35A:

“35AA. The Double Taxation Relief (Taxes onIncome) (Kingdom of Saudi Arabia)Order 2012 (S.I. No. 26 of 2012).”, 10

and

(b) in Part 3—

(i) by inserting the following after paragraph 4:

“4A. The Exchange of Information Relating toTax Matters (Grenada) Order 2012 (S.I. 15No. 23 of 2012).”,

and

(ii) by inserting the following after paragraph 9:

“10. The Exchange of Information Relating toTax Matters (Republic of Vanuatu) Order 202012 (S.I. No. 24 of 2012).”.

(2) This section applies on and from the date of the passing ofthis Act.

138.—The enactments specified in Schedule 6—

(a) are amended to the extent and in the manner specified in 25paragraphs 1 to 3 of that Schedule, and

(b) apply and come into operation in accordance with para-graph 4 of that Schedule.

139.—(1) In this section—

“capital services” has the same meaning as it has in the principal 30section;

“Capital Services Redemption Account” has the same meaning as ithas in the principal section;

“fifty-ninth additional annuity” means the sum charged on the Cen-tral Fund under subsection (3); 35

“principal section” means section 22 of the Finance Act 1950.

(2) In relation to the 29 successive financial years commencingwith the financial year ending on 31 December 2012, subsection (3)of section 82 of the Finance Act 2011 shall have effect with the sub-stitution of “€118,056,952” for “€141,616,974”. 40

222

(3) A sum of €118,068,355 to redeem borrowings in respect ofcapital services and interest on such borrowings shall be chargedannually on the Central Fund or the growing produce of that Fundin the 30 successive financial years commencing with the financialyear ending on 31 December 2012.5

(4) The fifty-ninth additional annuity shall be paid into the Capi-tal Services Redemption Account in such manner and at such timesin the relevant financial year as the Minister for Finance maydetermine.

(5) Any amount of the fifty-ninth additional annuity, not10exceeding €90,750,000 in any financial year, may be applied towarddefraying the interest on the public debt.

(6) The balance of the fifty-ninth additional annuity shall beapplied in any one or more of the ways specified in subsection (6) ofthe principal section.15

140.—All taxes and duties imposed by this Act are placed underthe care and management of the Revenue Commissioners.

141.—(1) This Act may be cited as the Finance Act 2012.

(2) Part 1 shall be construed together with—

(a) in so far as it relates to income tax, the Income Tax Acts,20

(b) in so far as it relates to income levy, Part 18A of the TaxesConsolidation Act 1997,

(c) in so far as it relates to universal social charge, Part 18Dof the Taxes Consolidation Act 1997,

(d) in so far as it relates to corporation tax, the Corporation25Tax Acts, and

(e) in so far as it relates to capital gains tax, the Capital GainsTax Acts.

(3) Part 2, in so far as it relates to duties of excise, shall be con-strued together with the statutes which relate to those duties and to30the management of those duties.

(4) Part 3 shall be construed together with the Value-Added TaxActs.

(5) Part 4 shall be construed together with the Stamp Duties Con-solidation Act 1999 and the enactments amending or extending that35Act.

(6) Part 5 shall be construed together with the Capital Acquis-itions Tax Consolidation Act 2003 and the enactments amending orextending that Act.

(7) Part 6 in so far as it relates to—40

(a) income tax, shall be construed together with the IncomeTax Acts,

223

Care andmanagement oftaxes and duties.

Short title,construction andcommencement.

(b) income levy, shall be construed together with Part 18A ofthe Taxes Consolidation Act 1997,

(c) universal social charge, shall be construed together withPart 18D of the Taxes Consolidation Act 1997,

(d) corporation tax, shall be construed together with the Cor- 5poration Tax Acts,

(e) capital gains tax, shall be construed together with theCapital Gains Tax Acts,

(f) customs, shall be construed together with the CustomsActs, 10

(g) duties of excise, shall be construed together with the stat-utes which relate to duties of excise and the managementof those duties,

(h) value-added tax, shall be construed together with theValue-Added Tax Acts, 15

(i) stamp duty, shall be construed together with the StampDuties Consolidation Act 1999 and the enactmentsamending or extending that Act,

(j) domicile levy, shall be construed together with Part 18Cof the Taxes Consolidation Act 1997, 20

(k) residential property tax, shall be construed together withPart VI of the Finance Act 1983 and the enactmentsamending or extending that Part, and

(l) gift tax or inheritance tax shall be construed together withthe Capital Acquisitions Tax Consolidation Act 2003 and 25the enactments amending or extending that Act.

(8) Except where otherwise expressly provided in Part 1, that Partis deemed to have come into force and takes effect on and from 1January 2012.

(9) Except where otherwise expressly provided for, where a pro- 30vision of this Act is to come into operation on the making of anorder by the Minister for Finance, that provision shall come intooperation on such day or days as the Minister for Finance shallappoint either generally or with reference to any particular purposeor provision and different days may be so appointed for different 35purposes or different provisions.

224

SCHEDULE 1

Consequential Amendments to Principal Act on Expiration ofthe Scheme of Relief for Certain Manufacturing Companies

1. In this Schedule “Principal Act” means the Taxes Consoli-dation Act 1997.5

2. Section 21A of the Principal Act is amended—

(a) in subsection (1) by substituting the following for para-graph (b) of the definition “excepted operations”:

“(b) (i) working scheduled minerals, mineral com-pounds or mineral substances (within the10meaning of section 2 of the MineralsDevelopment Act 1940), or

(ii) working minerals (other than those speci-fied in subparagraph (i)) other than somuch of working such minerals as is15manufacturing,

and”,


“(4) This section shall not apply to the profits of a com-pany for any accounting period to the extent that those20profits consist of income which arises in the course of anyof the following trades—

(a) non-life insurance,

(b) reinsurance, and

(c) life business, in so far as the income is attribu-25table to shareholders of the company.”,

and

(c) by deleting subsection (4A).

3. Principal Act is amended by deleting section 22A.

4. Section 82 of the Principal Act is amended by substituting the30following for subsection (3):

“(3) The amount of any expenditure to be treated under sub-section (2) as incurred at the time that a trade or profession hasbeen set up and commenced shall not be so treated for the pur-poses of section 381, 396(2) or 420.”.35

5. Section 133 of the Principal Act is amended—

(a) in subsection (1)(a) by substituting the following for thedefinitions “agricultural society”, “fishery society” and“specified trade”, respectively:

“ ‘agricultural society’ means a society—40

225

Section 54.

(i) in relation to which both the following con-ditions are satisfied:

(I) the number of the society’s members isnot less than 50, and

(II) all or a majority of the society’s 5members are persons who are mainlyengaged in and derive the principalpart of their income from husbandry,

or

(ii) to which a certificate to which this subpara- 10graph applies has been issued;

‘fishery society’ means a society—

(i) in relation to which both the following con-ditions are satisfied:

(I) the number of the society’s members is 15not less than 20, and

(II) all or a majority of the society’smembers are persons who are mainlyengaged in and derive the principalpart of their income from fishing, 20

or

(ii) to which a certificate to which this subpara-graph applies has been issued;

‘specified trade’ means, subject to paragraphs(b), (d) and (e), a trade which consists wholly or 25mainly of the manufacture of goods.”,

(b) in subsection (1) by inserting the following after para-graph (d):

“(da) A certificate to which subparagraph (ii) of thedefinition of ‘agricultural society’ or subpara- 30graph (ii) of the definition of ‘fishery society’in paragraph (a) applies is, as the case may be,a certificate given under—

(i) paragraph (b) or (c) of section 433(16),

(ii) paragraph (a) or (b) of section 70(2) of the 35Finance Act 1963,

(iii) paragraph (a) or (b) of section 220(2) of theIncome Tax Act 1967, or

(iv) paragraph (a) or (b) of section 18(2) of theFinance Act 1978, 40

and not revoked.”,

and

(c) in subsection (1) by deleting paragraph (e).

226

6. Section 134 of the Principal Act is amended in subsection (1)(a)by substituting “section 133(1)(a)” for “section 443(16)”.

7. Section 138 of the Principal Act is amended by inserting thefollowing subsection after subsection (3):

“(4) Where, but for the deletion of sections 445 and 446,5shares issued by a company would not be preference shares forthe purposes of this section then, notwithstanding the deletionof those sections, those shares shall be treated as not being pref-erence shares for those purposes and this section shall applywith any modifications necessary to give effect to this10subsection.”.

8. Section 198 of the Principal Act is amended by substituting thefollowing for subsection (2):

“(2) Where a company would not be chargeable to incometax in respect of interest paid in respect of a ‘relevant security’15(within the meaning of section 246) in accordance with thissection but for the fact that—

(a) sections 445 and 446 have been deleted, and

(b) those sections referred to time limits in respect of cer-tificates to which each section related,20

then, notwithstanding those deletions and time limits, the com-pany shall not be so chargeable and the other provisions of thissection shall apply with any modifications necessary to giveeffect to this subsection.”.

9. Section 243A of the Principal Act is amended—25

(a) in subsection (3) by substituting “Where” for “Subject tosection 454, where”,

(b) in subsection (3) by substituting the following for para-graph (a):

“(a) income specified in section 21A(4),”.30

10. Section 243B of the Principal Act is amended—

(a) in subsection (1) by deleting the definition “charges onincome paid for the purpose of the sale of goods”,


“(3) Where for any accounting period a company35claims relief under this section in respect of the excess, therelevant corporation tax of the company for the account-ing period shall be reduced, in so far as the excess consistsof relevant trading charges, by an amount determined bythe formula—40

C × R100

where—

C is the amount of the relevant trading charges onincome, and45

227

R is the rate per cent of corporation tax which, byvirtue of section 21, applies in relation to theaccounting period.”,

and

(c) by substituting the following for subsection (4): 5

“(4) Where a company makes a claim for relief underthis section in respect of any relevant trading charges onincome paid in an accounting period, an amount (whichshall not exceed the amount of the excess in respect ofwhich a claim under this section may be made), deter- 10mined by the formula—

T × 100R

where—

T is the amount by which the relevant corporation 15tax for the accounting period is reduced by vir-tue of subsection (3), and

R is the rate per cent of corporation tax which, byvirtue of section 21, applies in relation to theaccounting period, 20

shall be treated for the purposes of the Tax Acts asrelieved under this section.”.

11. Section 246 of the Principal Act is amended by substitutingthe following for subsection (4):

“(4) Where subsection (2) would not apply to interest paid 25to a person whose usual place of abode is outside the State byvirtue of subsection (3) but for the fact that—

(a) sections 445 and 446 have been deleted, and

(b) those sections referred to time limits in respect of cer-tificates to which each section related, 30

then, notwithstanding those deletions and time limits, subsection(2) shall not apply to such interest and the other provisions ofthis section shall apply with any modifications necessary to giveeffect to this subsection.”.

12. Section 321 of the Principal Act is amended by inserting the 35following after subsection (9)—

“(10) Where but for the deletion of sections 445 and 446, anallowance or charge would be made to or on a company forany chargeable period under this Part then, notwithstanding thatthose sections have been deleted, that allowance or charge shall 40be made to or on the company and, accordingly this Part shallapply with any modifications necessary to give effect to thissubsection.”.

13. Section 396 of the Principal Act is amended in subsection (1)by substituting “subsection (2), section 396A(3) or 396B(2)” for 45“subsection (2) or section 396A(3), 396B(2) or section 455(3)”.

228

14. Section 396A of the Principal Act is amended in subsection(3)—

(a) by substituting “Where” for “Subject to section 455,where”, and

(b) by substituting “section 21A(4)” for “section 21A(4)(b)”5in both places where it occurs.


(a) in subsection (1) by deleting the definition “a loss fromthe sale of goods”,

(b) by substituting the following for subsection (3):10

“(3) Where for any accounting period a companyclaims relief under this section in respect of the excess, therelevant corporation tax of the company for that account-ing period and, if the company was then carrying on thetrade and the claim so requires, for preceding accounting15periods ending within the time specified in subsection (4),shall be reduced, in so far as the excess consists of a rel-evant trading loss, by an amount determined by theformula—

L × R20

100

where—

L is the amount of the excess, and

R is the rate per cent of corporation tax which, byvirtue of section 21, applies in relation to the25accounting period.”,

and


“(5) Where a company makes a claim for relief for anyaccounting period under this section in respect of any rel-30evant trading loss incurred in a trade in an accountingperiod, an amount (which shall not exceed the amount ofthe excess in respect of which a claim under this sectionmay be made), determined by the formula—

T × 10035

R

where —

T is the amount by which the relevant corporationtax for the accounting period is reduced by vir-tue of subsection (3), and40

R is the rate per cent of corporation tax which, byvirtue of section 21, applies in relation to theaccounting period,

229

shall be treated for the purposes of the Tax Acts as anamount of loss relieved against profits of that accountingperiod.”.

16. Section 403 of the Principal Act is amended by inserting thefollowing after subsection (8): 5

“(8A) Where, but for the deletion of sections 445 and 446,any machinery or plant would, for the purposes of the definitionof ‘the specified capital allowances’, be machinery or plant towhich subsection (8) applies, then, notwithstanding the deletionof those sections, the machinery or plant shall be machinery or 10plant to which subsection (8) applies for those purposes and thissection shall apply with any modifications necessary to giveeffect to this subsection.”.

17. Section 420A of the Principal Act is amended in subsection(3)(a)— 15

(a) by substituting “Where” for “Subject to section 456,where”, and

(b) by substituting “section 21A(4)” for “section 21A(4)(b)”.


(a) in subsection (1) by deleting the definitions “charges on 20income paid for the purpose of the sale of goods” and “aloss from the sale of goods”,


“(3) Where for any accounting period a companyclaims relief under this section in respect of a relievable 25loss, the relevant corporation tax of the company for theaccounting period shall be reduced in so far as the reliev-able loss consists of a loss or charges on income by anamount determined by the formula—

L × R 30100

where—

L is an amount equal to the amount of the reliev-able loss, and

R is the rate per cent specified in section 21 in 35relation to the accounting period.”,

and


“(4) Where for any accounting period a companyclaims relief under this section in respect of any relevant 40trading loss or excess of relevant trading charges onincome, the surrendering company shall be treated as hav-ing surrendered, and the claimant company shall betreated as having claimed relief for, trading losses andcharges on income of an amount determined by the 45formula—

230

T × 100R

where—

T is the amount by which the relevant corporationtax payable for the accounting period is5reduced by virtue of subsection (3), and

R is the rate per cent of corporation tax which, byvirtue of section 21, applies in relation to theaccounting period.”.

19. Section 434 of the Principal Act is amended in subsection (5A)10by substituting the following for the definition “distributable trad-ing income”:

“ ‘distributable trading income’ of a company for an accountingperiod means the trading income of the company for theaccounting period after deducting the amount of corporation tax15which would be payable by the company for the accountingperiod if the tax were computed on the basis of that income;”.

20. Part 14 of the Principal Act is amended by deleting sections442 to 451 and section 453.

21. Section 452 of the Principal Act is amended:20

(a) in subsection (1) by deleting the definitions “qualifiedcompany” and “relevant trading operations”,

(b) by deleting subsection (3), and

(c) in subsection (4) by deleting “, (3)(b)”.

22. Section 487 of the Principal Act is amended—25

(a) in the definition of “accounting profit” in subsection(1)(a)—

(i) by deleting paragraph (ii)(III)”, and

(ii) by substituting “subparagraphs (IV) and (V)” for“subparagraphs (III), (IV) and (V)” and “Part 35”30for “Parts 14 and 35 in paragraph (iii)”,

and

(b) in the definition “group base tax” by substituting “subpar-agraph (IV)” for “subparagraph (III), (IV)”.

23. Section 701 of the Principal Act is amended in the definition35of “society” in subsection (1) by substituting “section 133(1)(a)” for“section 443(16)”.

24. Section 710 of the Principal Act is amended by substitutingthe following for subsection (2)(b):

“(b) Where a company would be chargeable to corpor-40ation tax in respect of the profits of a life business inaccordance with subsection (2)(a) but for the factthat—

231

(i) section 446 has been deleted, and

(ii) that section referred to time limits in respect ofcertificates to which the section related,

then, notwithstanding that deletion and those timelimits, those profits shall be chargeable to corporation 5tax in accordance with subsection (2)(a), and theother provisions of this section shall apply with anymodifications necessary to give effect to thissubsection.”.

25. Section 734 of the Principal Act is amended by substituting 10the following for subsection (1)(c):

“(c) Where, a collective investment undertaking would notbe chargeable to tax in respect of relevant profits,but the relevant profits would be chargeable to taxin the hands of the unit holder, including the under- 15taking, to whom a relevant payment of, or out of therelevant profits is made in accordance with subsec-tion (3) but for the fact that—

(i) sections 445 and 446 have been deleted, and

(ii) those sections referred to time limits in respect 20of certificates to which each section related,

then, notwithstanding those deletions and time limits,the collective investment undertaking shall not be sochargeable to tax in respect of relevant profits, butthe relevant profits shall be so chargeable to tax in the 25hands of the unit holder, including the undertaking, towhom a relevant payment of, or out of the relevantprofits is made and the other provisions of this sectionshall apply with any modifications necessary to giveeffect to this subsection.”. 30

26. Schedule 24 to the Principal Act is amended—

(a) in paragraph 4(2) by substituting “subject to subparag-raphs (4) and (5)” for “subject to subparagraphs (3) to(5)”,

(b) in paragraph 4(2A) by deleting “but subject to subpara- 35graph (3)”,

(c) in paragraph 4 by deleting subparagraph (3),

(d) in paragraph 4(4) by deleting clause (b),

(e) in paragraph 4(5)(a) by deleting “and sections 449 and450”, 40

(f) in paragraph 4(5)(b) by deleting subclauses (ii) and (iii),

(g) in paragraph 9A(5)(b) by deleting “section 449 or”,

(h) in paragraph 9D by deleting subparagraph (3),

(i) in paragraph 9DA(5)(b) by deleting “section 449 or”, and

(j) in paragraph 9DB by deleting subparagraph (3). 45

232

SCHEDULE 2

Reduction of Duty Chargeable on Non-residential Property

1. In Schedule 1 of the Stamp Duties Consolidation Act 1999under the Heading “CONVEYANCE or TRANSFER on sale of anyproperty other than stocks or marketable securities or a policy of5insurance or a policy of life insurance.” substitute the following forparagraphs (1) to (15):

“(1) Where the amount orvalue of the consideration for thesale is wholly or partly attributable10to residential property and theinstrument contains a statementcertifying that the considerationfor the sale is, as the case may be—

(a) wholly attributable to residen-15tial property, or

(b) partly attributable to residen-tial property,

and that the transaction effectedby that instrument does not form20part of a larger transaction or of aseries of transactions in respect ofwhich, had there been a largertransaction or a series of trans-actions, the amount or value, or25the aggregate amount or value, ofthe consideration (other than theconsideration for the sale con-cerned which is wholly or partlyattributable to residential30property) would have been whollyor partly attributable to residen-tial property:

for the consideration which isattributable to residential35

1 per cent of theproperty ........................................first €1,000,000 ofthe considerationand 2 per cent of40the balance of theconsiderationthereafter butwhere thecalculation results45in an amountwhich is not amultiple of €1 theamount socalculated shall be50rounded down tothe nearest €.

(2) Where paragraph (1) doesnot apply and the amount or valueof the consideration for the sale is55

233

Section 97.

wholly or partly attributable toresidential property and the instru-ment contains a statement certify-ing that the consideration for thesale is, as the case may be— 5

(a) wholly attributable to residen-tial property, or

(b) partly attributable to residen-tial property,

and that the transaction effected 10by that instrument forms part of alarger transaction or of a series oftransactions in respect of which theamount or value, or the aggregateamount or value, of the consider- 15ation which is attributable to resi-dential property is an amountequal to Y

where—

Y is the amount or value, or the 20aggregate amount or value, ofthe consideration in respectof the larger transaction or ofthe series of transactionswhich is attributable to resi- 25dential property:

for the consideration which isattributable to residentialproperty ........................................ Stamp duty of an

amount 30determined by theformula—

A × BC

where— 35

A is the amountof stamp dutythat wouldhave beenchargeable 40underparagraph (1)on the amountor value, or theaggregate 45amount orvalue, of theconsiderationin respect ofthe larger 50transaction orof the series oftransactionswhich isattributable to 55

234

residentialproperty hadparagraph 1applied to suchconsideration,5

B is the amountor value of theconsiderationfor the saleconcerned10which isattributable toresidentialproperty, and

C is the amount15or value, or theaggregateamount orvalue, of theconsideration in20respect of thelargertransaction orof the series oftransactions25which isattributable toresidentialproperty,

but where the cal-30culation results inan amount whichis not a multiple of€1 the amount socalculated shall be35rounded down tothe nearest €.

(3) Where paragraphs (1) and(2) do not apply and the amountor value of the consideration for40the sale is wholly or partly attribu-table to residential property:

for the consideration which isattributable to residentialproperty ........................................45 2 per cent of the

consideration butwhere thecalculation resultsin an amountwhich is not a50multiple of €1 theamount socalculated shall berounded down tothe nearest €.55

(4) Where the amount or valueof the consideration for the sale iswholly or partly attributable toproperty which is not residentialproperty .............................................60 2 per cent of the

235

considerationwhich isattributable toproperty which isnot residential 5property butwhere thecalculation resultsin an amountwhich is not a 10multiple of €1 theamount socalculated shall berounded down tothe nearest €. 15

(5) Where paragraph (4)applies in the case of a conveyanceor transfer on sale or in the case ofa conveyance or transfer operatingas a voluntary disposition inter 20vivos—

(a) the instrument is executedprior to 1 January 2015, and

(b) the instrument contains a cer-tificate by the party to whom 25the property is being con-veyed or transferred to theeffect that the person becom-ing entitled to the entirebeneficial interest in the 30property (or, where morethan one person becomesentitled to a beneficialinterest in the property, eachof them) is related to the per- 35son or each of the personsimmediately theretoforeentitled to the entirebeneficial interest in theproperty in one or other of 40the following ways, that is, asa lineal descendant, parent,grandparent, step-parent,husband or wife, brother orsister of a parent or brother 45or sister, or lineal descendantof a parent, husband or wifeor brother or sister, or is, asrespects the person or eachof the persons immediately 50theretofore entitled, his orher civil partner, the civilpartner of either of his or herparents or a lineal descend-ant of his or her civil 55partner...................................... a duty of an

amount equal toone-half of the advalorem stampduty which, but 60

236

for the provisionsof this paragraph,would bechargeable underthis heading but5where thecalculation resultsin an amountwhich is not amultiple of €1 the10amount socalculated shall berounded down tothe nearest €.”.

2. In Schedule 1 of the Stamp Duties Consolidation Act 199915under the Heading “LEASE.” in paragraph (3) substitute the follow-ing for subparagraphs (a) and (b):

“(a) where the consideration,or any part of the con-sideration (other than20rent), moving either to thelessor or to any other per-son, consists of anymoney, stock or security,and25

(i) the amount or value ofsuch consideration forthe lease is wholly orpartly attributable toresidential property and30the instrument containsa statement certifyingthat the consideration(other than rent) for thelease is, as the case may35be—

(I) wholly attributableto residentialproperty, or

(II) partly attributable40to residentialproperty,

and that the transactioneffected by that instrumentdoes not form part of a45larger transaction or of aseries of transactions inrespect of which, had therebeen a larger transaction ora series of transactions, the50amount or value, or theaggregate amount or value,of the consideration (otherthan the consideration forthe lease concerned which55is wholly or partly attribu-table to residential property

237

and other than rent) wouldhave been wholly or partlyattributable to residentialproperty:

for the consideration 5which is attributable toresidential property......... 1 per cent of the

first €1,000,000of theconsideration 10and 2 per centof the balance oftheconsiderationthereafter but 15where thecalculationresults in anamount which isnot a multiple of 20€1 the amountso calculatedshall be roundeddown to thenearest €. 25

(ii) the amount or value ofsuch consideration forthe lease is wholly orpartly attributable toresidential property and 30the instrument containsa statement certifyingthat the consideration(other than rent) for thelease is, as the case may 35be—

(I) wholly attributableto residentialproperty, or

(II) partly attributable 40to residentialproperty,

and that the transactioneffected by that instru-ment forms part of a 45larger transaction or of aseries of transactions inrespect of which theamount or value, or theaggregate amount or 50value, of the consider-ation (other than rent)which is attributable toresidential property isan amount equal to Y 55

where—

Y is the amount or value,

238

or the aggregateamount or value,of the consider-ation (other thanrent) in respect of5the larger trans-action or of theseries of trans-actions which isattributable to10residentialproperty,

and clause (i) does not apply:

for the consideration whichis attributable to15residential property.............. Stamp duty of

an amountdetermined bythe formula—

A × B20C

where—

A is the amountof stamp dutythat would25have beenchargeableunder clause(i) on theamount or30value, or theaggregateamount orvalue, of theconsideration35(other thanrent) inrespect of thelargertransaction or40of the seriesoftransactionswhich isattributable to45residentialproperty hadclause (i)applied tosuch50consideration,

B is the amountor value oftheconsideration55(other thanrent) for thelease

239

concernedwhich isattributable toresidentialproperty, and 5

C is the amountor value, orthe aggregateamount orvalue, of the 10consideration(other thanrent) inrespect of thelarger 15transaction orof the seriesof transactionswhich isattributable to 20residentialproperty,

but where thecalculationresults in an 25amount which isnot a multiple of€1 the amountso calculatedshall be rounded 30down to thenearest €.

(iii) the amount or value ofsuch consideration iswholly or partly 35attributable to resi-dential property andclauses (i) and (ii) donot apply ...................... 2 per cent of the

consideration 40which isattributable toresidentialproperty butwhere the 45calculationresults in anamount which isnot a multiple of€1 the amount 50so calculatedshall be roundeddown to thenearest €.

(b) where the consideration, or 55any part of the consider-ation (other than rent),

240

moving either to thelessor or to any other per-son, consists of anymoney, stock or security,and the amount or value5of such consideration iswholly or partly attribu-table to property which isnot residential property.... 2 per cent of the

consideration10which isattributable toproperty whichis not residentialproperty but15where thecalculationresults in anamount which isnot a multiple of20€1 the amountso calculatedshall be roundeddown to thenearest €.”.25

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Section 107. SCHEDULE 3

Modernisation of Stamping of Instruments: Introduction ofSelf-Assessment and Consequential Changes, etc.

1. In this Schedule “Principal Act” means the Stamp Duties Con-solidation Act 1999. 5

2. Section 2 of the Principal Act is amended by substituting thefollowing for subsection (3):

“(3) Any instrument chargeable with stamp duty shall, unlessit is written on duty stamped material, be duly stamped with theproper stamp duty before the expiration of 30 days after it is 10first executed.”.


(a) in subsection (2) by deleting “(other than where the Com-missioners are required to express their opinion inrelation to the chargeability of the instrument to duty in 15accordance with section 20)”,


“(5) Where an instrument operates, or is deemed tooperate, as a voluntary disposition inter vivos undersection 30 or 54 such fact shall be brought to the attention 20of the Commissioners in the electronic return or the paperreturn to be delivered in relation to an instrumentrequired to be stamped and where the requirement of thissubsection is not complied with an accountable personshall, for the purposes of subsection (3) of this section or 25section 134A(2)(a), as the case may be, be presumed, untilthe contrary is proven, to have acted negligently or delib-erately, as the case may be.”,

and

(c) by deleting subsections (6) and (7). 30

4. The Principal Act is amended by inserting the following aftersection 8A:

“Penalties:failure todeliver returns.

8B.—Where an accountable person fails tocause an electronic return or a paper return to bedelivered in relation to an instrument within the 35time specified in section 2(3), the accountable per-son or, where there is more than one accountableperson, each accountable person shall incur a pen-alty of €3,000.

Expression ofdoubt.

8C.—(1) In this section— 40

‘the law’ has the meaning assigned to it by subsec-tion (2);

‘letter of expression of doubt’ means a communi-cation received in legible form which—

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(a) sets out full details of the facts and cir-cumstances affecting the liability of aninstrument to stamp duty, and makesreference to the provisions of the lawgiving rise to the doubt,5

(b) identifies the amount of stamp duty indoubt in respect of the instrument towhich the expression of doubt relates,

(c) is accompanied by supporting docu-mentation as relevant, and10

(d) is clearly identified as a letter ofexpression of doubt for the purposes ofthis section,

and reference to ‘an expression of doubt’ shall beconstrued accordingly.15

(2) (a) Subject to paragraph (b), where, inrelation to an instrument, an account-able person is in doubt as to the correctapplication of any enactment relatingto stamp duty (in this section referred20to as ‘the law’) to an instrumentwhich could—

(i) give rise to a liability to stamp dutyby that person, or

(ii) affects that person’s liability to25stamp duty or entitlement to anexemption or a relief from stampduty,

then the accountable person may lodgea letter of expression of doubt with the30Commissioners in such manner as theCommissioners may require.

(b) This subsection shall apply only ifboth—

(i) the electronic return or the paper35return, and

(ii) the expression of doubt referred toin paragraph (a),

are delivered to the Commissioners before theexpiration of 30 days after the instrument is first40executed.

(3) Subject to subsection (4), where an account-able person causes an electronic return or a paperreturn to be delivered to the Commissioners andlodges an expression of doubt relating to the45instrument in accordance with this section, theninterest calculated in accordance with section159D shall not apply to any additional stamp dutyarising where the Commissioners notify the person

243

of the correct application of the law to that instru-ment and the return will not be deemed to be anincorrect return if an amended return, whichincludes an assessment to be substituted for anearlier assessment, is delivered and the additional 5duty is paid within 30 days of the date on whichthat notification is issued.

(4) Subsection (3) does not apply where theCommissioners do not accept as genuine anexpression of doubt in relation to the correct 10application of the law to an instrument, and anexpression of doubt shall not be accepted asgenuine in particular where the Commissioners—

(a) have issued general guidelines concern-ing the application of the law in 15similar circumstances,

(b) are of the opinion that the matter isotherwise sufficiently free from doubtas not to warrant an expression ofdoubt, or 20

(c) are of the opinion that the accountableperson was acting with a view to theevasion or avoidance of duty.

(5) Where the Commissioners do not accept anexpression of doubt as genuine, they shall notify 25the accountable person accordingly and theaccountable person shall, on receipt of the notifi-cation, cause an amended return that includes anassessment to be substituted for an earlier assess-ment to be delivered and the additional duty to be 30paid together with any interest payable calculatedin accordance with section 159D.

(6) Where an accountable person is aggrievedby a decision of the Commissioners under subsec-tion (5) he or she may appeal to the Appeal Com- 35missioners in accordance with section 21(9).”.


(a) by deleting subsections (2), (2A) and (3), and

(b) in subsection (4) by deleting “and penalty”.

6. The Principal Act is amended by inserting the following after 40section 14:

“Late filing ofreturn.

14A.—(1) In this section ‘specified return date’means the thirtieth day after the date of the firstexecution of an instrument chargeable with duty.

(2) For the purposes of this section— 45

(a) where an accountable person deliber-ately or carelessly causes the deliveryof an incorrect electronic return or apaper return on or before the specifiedreturn date, that person shall be 50

244

deemed to have failed to have deliv-ered the return on or before that dateunless the error in the return is rem-edied by the delivery of a correctreturn on or before that date,5

(b) where an accountable person causes thedelivery of an incorrect electronicreturn or a paper return on or beforethe specified return date, but does soneither deliberately nor carelessly and10it comes to that person’s notice (or, ifhe or she has died, to the notice of hisor her personal representative) that itis incorrect, the person shall bedeemed to have failed to have deliv-15ered the return on or before the speci-fied return date unless the error in thereturn is remedied by the delivery ofa correct return without unreasonabledelay, and20

(c) where an accountable person causes thedelivery of an electronic return or apaper return on or before the specifiedreturn date, but the Commissioners, byreason of being dissatisfied with any25information contained in the return,require that person, by notice in writ-ing served on him or her, to deliver astatement or evidence, or further state-ment or evidence, as may be required30by them, the person shall be deemednot to have delivered the return on orbefore the specified return date unlessthe person delivers the statement orevidence, or further statement or evi-35dence, within the time specified inany notice.

(3) Where an accountable person fails to causethe delivery of an electronic return or a paperreturn in relation to an instrument on or before40the specified return date, the stamp duty charge-able on such instrument shall be increased by anamount (in this section referred to as a‘surcharge’) equal to—

(a) 5 per cent of the amount of duty, subject45to a maximum surcharge of €12,695,where the return is delivered beforethe expiry of 2 months from the speci-fied return date, and

(b) 10 per cent of the amount of duty, sub-50ject to a maximum surcharge of€63,485, where the return is not deliv-ered before the expiry of 2 monthsfrom the specified return date.”.

7. The Principal Act is amended by deleting sections 15, 16 and 17.55

8. Section 17A of the Principal Act is amended in paragraph (f)—

245

(a) in subparagraph (i), by deleting “and penalty”, and

(b) by deleting subparagraph (ii).

9. Section 18 of the Principal Act is amended by substituting “4years from the date the instrument was stamped by the Commis-sioners” for “6 years after the making or execution of the 5instrument”.

10. Section 20 of the Principal Act is amended by substituting thefollowing for that section:

“Assessmentof duty byCommiss-ioners.

20.—(1) Notwithstanding subsection (2), wherean electronic return or a paper return is delivered 10in relation to an instrument required to bestamped by means of the e-stamping system, thereshall be included on that return an assessment ofsuch amount of stamp duty that, to the best of theaccountable person’s knowledge, information and 15belief, ought to be charged, levied and paid on theinstrument and the accountable person shall pay,or cause to be paid, the stamp duty so assessedtogether with interest calculated in accordancewith section 159D unless the Commissioners make 20another assessment to be substituted for suchassessment.

(2) Where an accountable person fails to causean electronic return or a paper return to be deliv-ered in relation to an instrument required to be 25stamped by means of the e-stamping system, theCommissioners shall make an assessment of suchamount of stamp duty as, to the best of theirknowledge, information (including informationreceived from a member of the Garda Síochána) 30and belief, ought to be charged, levied and paidon the instrument and an accountable person shallbe liable for the payment of the stamp duty soassessed together with interest calculated inaccordance with section 159D unless the Commis- 35sioners make another assessment to be substitutedfor such assessment.

(3) Where the Commissioners make an assess-ment to be substituted for another assessment, anaccountable person shall be liable for the payment 40of the stamp duty so assessed together withinterest calculated in accordance with section159D.

(4) The Commissioners may require to be fur-nished with a copy of the instrument, together 45with such evidence as they may deem necessary,in order to show to their satisfaction that theinstrument has been or will be correctly stamped.

(5) Every instrument stamped in conformitywith an assessment made under this section shall 50be admissible in evidence and available for all pur-poses notwithstanding any objection relating toduty.

246

(6) An instrument which is chargeable withduty shall not, if it is unstamped or insufficientlystamped, be stamped otherwise than in accordancewith an assessment.

(7) Nothing in this section shall authorise the5stamping after its execution of any instrumentwhich by law cannot be stamped after execution.

(8) The Commissioners may make such enquir-ies or take such actions as they consider necessaryto satisfy themselves as to the accuracy of an elec-10tronic return or a paper return delivered inrelation to an instrument required to be stamped.

(9) Where an amended electronic return or anamended paper return is delivered in relation toan instrument required to be stamped by means of15the e-stamping system, there shall be included onthat amended return an assessment to be substi-tuted for an earlier assessment.”.

11. Section 21 of the Principal Act is amended by substituting thefollowing for that section:20

“Right ofappeal ofpersonsdissatisfiedwithassessment ordecision.

21.—(1) In this section—

‘Appeal Commissioners’ has the meaning assignedto it by section 850 of the Taxes ConsolidationAct 1997;

‘time for bringing an appeal’ means 30 days.25

(2) An accountable person who is dissatisfiedwith an assessment of the Commissioners inrelation to an instrument may appeal to theAppeal Commissioners against the assessment andthe appeal shall be heard and determined by the30Appeal Commissioners whose determination shallbe final and conclusive unless the appeal isrequired to be reheard by a judge of the CircuitCourt or a case is required to be stated in relationto it for the opinion of the High Court on a point35of law.

(3) No appeal may be made against an assess-ment made on an accountable person by the Com-missioners, where the duty had been agreedbetween the Commissioners and the accountable40person, or any person authorised by the account-able person in that behalf, before the making ofthe assessment.

(4) (a) Where—

(i) an accountable person fails to cause45an electronic return or a paperreturn to be delivered in relationto an instrument, or

(ii) the Commissioners are not satisfiedwith the electronic return or the50

247

paper return which has been deliv-ered, or has received any infor-mation as to its insufficiency,

and the Commissioners make an assess-ment in accordance with section 20, no 5appeal shall lie against that assessmentuntil such time as—

(I) in a case to which subparagraph (i)applies, an electronic return or apaper return is delivered to the 10Commissioners, and

(II) in a case to which either subpara-graph (i) or (ii) applies, theaccountable person pays or haspaid an amount of duty on foot of 15the assessment which is not lessthan the duty which would be pay-able on foot of the assessment ifthe assessment were made in allrespects by reference to the return 20delivered to the Commissioners,

and the time for bringing an appealagainst the assessment shall be treatedas commencing at the earliest date onwhich both the return has been deliv- 25ered and that amount of duty has beenpaid.

(b) References in this subsection to anamount of duty shall be construed asincluding a surcharge under section 3014A(3) and any amount of interestwhich would be due and payable onthat duty, calculated in accordancewith section 159D, at the date of pay-ment of the duty, together with any 35costs incurred or other amounts whichmay be charged or levied in pursuingthe collection of the duty contained inthe assessment.

(5) Where an appeal is brought against an 40assessment made on an accountable person inrelation to an instrument required to be stampedby means of the e-stamping system, the account-able person shall specify in the notice of appeal—

(a) each amount or matter in the assess- 45ment with which the accountable per-son is aggrieved, and

(b) the grounds in detail of the accountableperson’s appeal as respects each suchamount or matter. 50

(6) Where, as respects an amount or matter towhich a notice of appeal relates, the notice doesnot comply with subsection (5), the notice shall, inso far as it relates to that amount or matter, be

248

invalid and the appeal concerned shall, in so far asit relates to that amount or matter, be deemed notto have been brought.

(7) The accountable person shall not beentitled to rely on any ground of appeal that is not5specified in the notice of appeal unless the AppealCommissioners, or the Judge of the Circuit Court,as the case may be, are or is satisfied that theground could not reasonably have been stated inthe notice.10

(8) Notwithstanding subsection (2)—

(a) any person dissatisfied with any decisionof the Commissioners as to the valueof any land for the purpose of anassessment under this Act may appeal15against such decision in the mannerprescribed by section 33 (as amendedby the Property Values (Arbitrationsand Appeals) Act 1960) of the Finance(1909-10) Act 1910, and so much of20Part I of that Act as relates to appealsshall apply to an appeal under thissubsection;

(b) an appeal shall not lie under subsection(2) on any question relating to the25value of any land.

(9) An accountable person who is aggrieved bya decision of the Commissioners under section8C(5) that an expression of doubt is not genuinemay, by giving notice in writing to the Commis-30sioners within the period of 30 days after the noti-fication of the said decision, require the matter tobe referred to the Appeal Commissioners and onthe hearing of an appeal under this subsection, theAppeal Commissioners shall have regard only to35whether the expression of doubt is genuine.

(10) Subject to this section, Chapter 1 of Part40 (which relates to appeals) of the Taxes Consoli-dation Act 1997 shall, with any necessary modifi-cations, apply as they apply for the purpose of40income tax.”.


(a) in subsection (4)(a) by deleting “, in the opinion of theCommissioners,” and “or to such lower multiple, notbeing less than 5, of the open market value of the land45as the Commissioners consider appropriate having regardto the relevant information available to them”, and


13. Section 30 of the Principal Act is amended by deleting subsec-tion (3).50

14. Section 33 of the Principal Act is amended in subsection (2)by substituting “In relation to an instrument chargeable with duty in

249

accordance with subsection (1), if on a claim made to the Commis-sioners not later than 4 years from the date the instrument wasstamped by the Commissioners,” for “If on a claim made to the Com-missioners not later than 6 years after the making or execution of aninstrument chargeable with duty in accordance with subsection (1),”. 5

15. Section 33 of the Principal Act is amended by deleting subsec-tion (4).


(a) in subsection (4)(a) by deleting “, in the opinion of theCommissioners,” and “or to such lower multiple, not 10being less than 5, of the open market value of the landas the Commissioners consider appropriate having regardto the relevant information available to them”, and


17. Section 54 of the Principal Act is amended by deleting subsec- 15tion (3).

18. Section 71 of the Principal Act is amended by deleting para-graph (g).

19. Section 77 of the Principal Act is amended in subsection (2)by substituting the following for paragraph (a): 20

“(a) was made within the period of 4 years from the datethe operator-instruction referred to in section 69was made,”.


(a) by deleting subsection (2), 25

(b) in subsection (3) by deleting “it is shown to the satisfactionof the Commissioners that”,

(c) in subsection (5) by deleting “it is also shown to the satis-faction of the Commissioners that”,

(d) in subsection (6) by deleting paragraph (b), and 30

(e) in paragraph (a) of subsection (7) by substituting “theexemption was not properly due” for “any declaration orother evidence furnished in support of the claim wasuntrue in any material particular”.

21. Section 80 of the Principal Act is amended— 35

(a) in subsection (2) by deleting “it is shown to the satisfactionof the Commissioners that”,

(b) by deleting paragraph (a) of subsection (3),

(c) by deleting paragraph (b) of subsection (7), and

(d) in paragraph (a) of subsection (8) by substituting “the 40exemption was not properly due” for “any declaration orother evidence furnished in support of the claim wasuntrue in any material particular”.

250

22. Section 80A of the Principal Act is amended—

(a) by deleting subsection (5),

(b) by deleting paragraph (b) of subsection (7), and

(c) in subsection (8) by substituting “the exemption was notproperly due” for “any declaration or other evidence fur-5nished in support of the claim was untrue in anymaterial particular”.

23. Section 81AA of the Principal Act is amended—

(a) by substituting the following for subsection (8):

“(8) This section applies to any instrument which10operates as a conveyance or transfer (whether on sale oras a voluntary disposition inter vivos) of an interest in landto a young trained farmer where it is the intention of theyoung trained farmer, or each young trained farmer ifthere is more than one, for a period of 5 years from the15date of execution of the instrument to—

(a) spend not less than 50 per cent of their normalworking time farming the land, and

(b) retain ownership of the land.”,

(b) by deleting subsection (10), and20

(c) in subsection (11) by substituting the following for para-graph (c):

“(c) Where within 4 years from the date of executionof an instrument to which this subsectionapplies, the transferee achieves the standard,25the Commissioners shall, where a claim forrepayment is made to them by the transferee,or each of them if there is more than one, andwhere it is the intention of such person, or eachsuch person, for a period of 5 years from the30date on which the claim for repayment is madeto the Commissioners to—

(i) spend not less than 50 per cent of that per-son’s normal working time, farming theland, and35

(ii) retain ownership of the land,

cancel and repay such duty as would have beenchargeable had this section applied to the instru-ment when it was first presented for stamping.”.

24. Section 82 of the Principal Act is amended by deleting subsec-40tion (2).

25. Section 82A of the Principal Act is amended by deleting sub-section (3).

26. Section 82B of the Principal Act is amended by deleting para-graph (b) of subsection (2).45

251

27. Section 83B of the Principal Act is amended by deleting sub-section (2).

28. Section 95 of the Principal Act is amended in subsection (2)by deleting “the instrument contains a certificate to the effect that”.

29. Section 96 of the Principal Act is amended by deleting subsec- 5tion (3).

30. Section 97 of the Principal Act is amended by deleting subsec-tion (3).

31. Section 97A of the Principal Act is amended by deleting sub-section (3). 10


(a) in subsection (1) by substituting “duty, including any sur-charge incurred under section 14A(3), and interest” for“duty, interest and penalty”,

(b) in subsection (2) by substituting “duty, including any sur- 15charge incurred under section 14A(3), and interest” for“duty, interest and penalty” in both places where itoccurs and by deleting “, for the duty and penalty”,


“(3) On production to the Commissioners of any instru- 20ment on which any duty, including any surcharge incurredunder section 14A(3), and interest has been paid undersubsection (1), together with the receipt, and an electronicreturn or a paper return has been delivered to the Com-missioners, the Commissioners shall treat the duty, includ- 25ing any surcharge incurred under section 14A(3), andinterest as paid in the e-stamping system.”,

and

(d) by inserting the following after subsection (4):

“(5) For the purposes of subsection (4), an instrument 30that has been stamped by means of the e-stamping systemis deemed to have been duly stamped notwithstanding anyobjection relating to duty.”.

33. The Principal Act is amended by inserting the following aftersection 128: 35

“Obligation toretain records.


‘records’ includes books, accounts, documents andany other data maintained manually or by anyelectronic, photographic or other process, relat-ing to— 40

(a) a liability to stamp duty, and

(b) a relief or any exemption claimed underany provision of this Act.

(2) Every accountable person shall retain, orcause to be retained on his or her behalf, records 45

252

of the type referred to in subsection (1) as arerequired to enable—

(a) a true return or statement to be madefor the purposes of this Act, and

(b) a claim to a relief or an exemption5under any provision of this Act to besubstantiated.

(3) Any records required to be retained by vir-tue of this section shall be retained—

(a) in its written form, or10

(b) subject to section 887(2) of the TaxesConsolidation Act 1997, by means ofany electronic, photographic or otherprocess.

(4) Records retained for the purposes of sub-15sections (2) and (3) shall be retained by the personrequired to retain the records for a period of 6years commencing on the later of—

(a) the date an electronic return or a paperreturn was delivered to the Commis-20sioners, or

(b) the date that the duty was paid to theCommissioners.

(5) Any person who fails to comply with sub-section (2), (3) or (4) in respect of the retention of25any records relating to a liability to stamp duty,or a relief or an exemption, is liable to a penaltyof €3,000.

Power ofinspection.

128B.—(1) In this section—

‘authorised officer’ means an officer of the30Revenue Commissioners authorised by them inwriting to exercise the powers conferred by thissection;

‘employee’ means an employee who by virtue ofhis or her employment is in a position to, or to35procure—

(a) the production of the books, records orother documents,

(b) the furnishing of information, expla-nations and particulars, and40

(c) the giving of all assistance, to an author-ised officer, as may be required undersubsection (3);

‘records’ has the same meaning as in section 128A;

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‘relevant person’ means an accountable personand, where records are retained on his or herbehalf, a person who retains the records;

‘return’ means an electronic return or a paperreturn. 5

(2) An authorised officer may at all reasonabletimes enter any premises or place of business of arelevant person for the purpose of auditing areturn.

(3) An authorised officer may require a rel- 10evant person or an employee of the relevant per-son to produce records or other documents and tofurnish information, explanations and particularsand to give all assistance, which the authorisedofficer reasonably requires for the purposes of his 15or her audit under subsection (2).

(4) An authorised officer may take extractsfrom or copies of all or any part of the records orother documents or other material made availableto him or her or require that copies of records or 20other documents be made available to him or her,in exercising or performing his or her powers orduties under this section.

(5) An authorised officer when exercising orperforming his or her powers or duties under this 25section shall, on request, produce his or her auth-orisation for the purposes of this section.

(6) An employee of a relevant person who failsto comply with the requirements of the authorisedofficer in the exercise or performance of the auth- 30orised officer’s powers or duties under this sectionshall be liable to a penalty of €1,265.

(7) A relevant person who fails to comply withthe requirements of the authorised officer in theexercise or performance of the authorised officer’s 35powers or duties under this section shall be liableto a penalty of €19,045 and if that failure continuesa further penalty of €2,535 for each day on whichthe failure continues.”.

34. Section 134A of the Principal Act is amended— 40

(a) in subsection (1) by substituting the following for thedefinition of “person”:

“ ‘person’ means—

(a) for the purposes of subsections (2)(b) and(4)(b), a system-member, 45

(b) for the purposes of subsections (2)(c) and (4)(c),an accountable person where an electronicreturn or a paper return is caused to be deliv-ered, or is delivered, to the Commissioners,and 50

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(c) for the purposes of subsection (2)(d), anaccountable person where an electronic returnor a paper return, which is required to be deliv-ered, is not delivered to the Commissioners;”,

(b) in subsection (2) by deleting “or” where it last occurs in5paragraph (b), by substituting “such return, or” for “suchreturn,” in paragraph (c) and by inserting the followingafter paragraph (c):

“(d) fails to deliver or cause to be deliveredan electronic return or a paper return10which is required to be delivered tothe Commissioners,”,

(c) in subsection (3) by deleting “and” in paragraph (b), bysubstituting “subsection (9), and” for “subsection (9)” inparagraph (c) and by inserting the following after para-15graph (c):

“(d) in subsection (2) in relation to para-graph (d) of that subsection, shall bethe amount specified in subsection(9A),”,20

(d) in subsection (4) by deleting “or” where it last occurs inparagraph (b), by substituting “such return, or” for “suchreturn” in paragraph (c) and by inserting the followingafter paragraph (c):

“(d) fails to deliver or cause to be delivered25an electronic return or a paper returnwhich is required to be delivered tothe Commissioners,”,

(e) by inserting the following after subsection (5):

“(5A) (a) The further penalty referred to in subsection30(4) in relation to paragraph (d) of that subsec-tion, shall be the amount specified in subsec-tion (9A) reduced to 40 per cent.

(b) Where the person who incurred the penalty co-operated fully with any investigation or35enquiry started by the Commissioners or by aRevenue officer into any matter occasioning aliability to duty of that person, the further pen-alty referred to in subsection (4) in relation toparagraph (d) of that subsection, shall be the40amount specified in subsection (9A) reducedto—

(i) 30 per cent of that amount where subpara-graph (ii) or (iii) does not apply,

(ii) 20 per cent of that amount where a45prompted qualifying disclosure has beenmade by that person, or

(iii) 5 per cent of that amount where anunprompted qualifying disclosure hasbeen made by that person.”,50

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(f) in subsection (6) by deleting “or” where it last occurs inparagraph (b), by substituting “such return, or” for “suchreturn” in paragraph (c) and by inserting the followingafter paragraph (c):

“(d) fails to deliver or cause to be delivered 5an electronic return or a paper returnwhich is required to be delivered tothe Commissioners,”,

and

(g) by inserting the following after subsection (9): 10

“(9A) The amount referred to in subsection (3)(d) andin subsection (5A) is the amount of duty that would havebeen payable if a return had been delivered.”.

35. Section 151 of the Principal Act is amended in subsection (2)by substituting the following for paragraph (a): 15

“(a) the application for relief is made within theperiod of 4 years after the stamp has beenspoiled or become useless or, in the case ofan executed instrument, within the periodof 4 years from the date the instrument was 20stamped by the Commissioners,”.

36. Section 152 of the Principal Act is amended by substitutingthe following for that section:

“Allowancefor misusedstamps.

152.—When any person has inadvertently used,for an instrument liable to duty, a stamp of greater 25value than was necessary, or has inadvertentlyused a stamp for an instrument not liable to anyduty, the Commissioners may, on applicationmade within the period of 4 years from the datethe instrument was stamped by the Commis- 30sioners, and on the instrument, if liable to duty,being stamped with the proper duty, cancel orallow as spoiled the stamp so misused.”.

37. Section 154 of the Principal Act is amended by substituting “4years from the date the stamp was purchased” for “6 years next pre- 35ceding the application”.

38. The Principal Act is amended by inserting the following aftersection 158:

“Delegation. 158A.—Anything required to be done by theCommissioners under this Act, other than the 40making of regulations or an authorisation underthis section, may be done by such officer orofficers, or class of officer or officers, of the Com-missioners as the Commissioners authorise in writ-ing in that behalf and different officers or classes 45of officers may be authorised for differentpurposes.”.

39. Schedule 1 to the Principal Act, as amended by this Act, isamended—

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(a) under the Heading “CONVEYANCE or TRANSFER onsale of any stocks or marketable securities.”—

(i) in paragraph (1) by deleting “contains a statementcertifying that the transaction effected by that instru-ment”, and5

(ii) in paragraph (2) by deleting “, if less than €1, berounded up to €1 and,” in the second column ofthat paragraph,

(b) under the Heading “CONVEYANCE or TRANSFER onsale of any property other than stocks or marketable10securities or a policy of insurance or a policy of lifeassurance.”—

(i) in paragraph (1) by deleting “the instrument containsa statement certifying that the consideration for saleis, as the case may be—”, by deleting subparagraphs15(a) and (b) and by deleting “and that”,

(ii) in paragraph (2) by deleting “the instrument containsa statement certifying that the consideration for saleis, as the case may be—”, by deleting subparagraphs(a) and (b) and by deleting “and that”, and20

(iii) by deleting paragraph (3),

and

(c) under the Heading “LEASE.” by deleting—

(i) in paragraph (3)(a)(i) by deleting “the instrumentcontains a statement certifying that the consideration25(other than rent) for the lease is, as the case maybe—”, by deleting subclauses (I) and (II) and bydeleting “and that”,

(ii) in paragraph (3)(a)(ii) by deleting “the instrumentcontains a statement certifying that the consideration30(other than rent) for the lease is, as the case maybe—”, by deleting subclauses (I) and (II) and bydeleting “and that”, and

(iii) by deleting paragraph (3)(a)(iii).

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Modernisation of Direct Taxes Assessing Rules IncludingRules for Self Assessment

PART 1

Amendment of the Taxes Consolidation Act 1997 5

The Taxes Consolidation Act 1997 is amended by inserting the fol-lowing Part after Part 41:

“PART 41A

Assessing Rules Including Rules for Self Assessment

Chapter 1 10

Interpretation (Part 41A)

Interpretation. 959A.—In this Part, except where the contextotherwise requires—

‘Acts’ means—

(a) the Income Tax Acts, 15

(b) the Corporation Tax Acts,

(c) the Capital Gains Tax Acts,

(d) Part 18C,

(e) Part 18D,

and any instruments made under any of those Acts 20or Parts;

‘amount of tax chargeable on a person’, in relationto a person and an Act, means the amount of taxchargeable on the person under the Act after tak-ing into account any allowance, deduction or relief 25that is authorised by the Act to be given to theperson against income, profits or gains or, asapplicable, chargeable gains;

‘amount of tax payable by a person’, in relation toa person and an Act, means the amount of tax 30computed by reducing the amount of tax charge-able on the person by the amount of any tax creditthat is authorised by the Act to be given to theperson;

‘appeal’ means an appeal under section 933 or, as 35respects capital gains tax, an appeal undersection 945;

‘assessment’, other than in section 959G, means anassessment to tax that is made under the Acts and,

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unless the context otherwise requires, includes aself assessment;

‘chargeable gain’ has the same meaning as insection 545(3);

‘chargeable period’ means an accounting period of5a company or a tax year;

‘chargeable person’ means, as respects a charge-able period, a person who is chargeable to tax forthat period, whether on that person’s own accountor on account of some other person but, as10respects income tax, does not include a person towhom subsection (1) of section 959B relates;

‘determination of the appeal’ means a determi-nation by the Appeal Commissioners undersection 933(4), and includes an agreement referred15to in section 933(3) and an assessment becomingfinal and conclusive by virtue of section 933(6);

‘due date for the payment of an amount of pre-liminary tax’ has the meaning assigned to it byChapter 7;20

‘electronic means’ includes electronic, digital,magnetic, optical, electromagnetic, biometric, pho-tonic means of transmission of data and otherforms of related technology by means of whichdata is transmitted;25

‘electronic record’ includes electronic, digital,magnetic, optical, electromagnetic, biometric, pho-tonic means of storing data and other forms ofrelated technology by means of which data isstored;30

‘precedent partner’ has the same meaning as inPart 43;

‘prescribed form’ means a form prescribed by theRevenue Commissioners or a form used under theauthority of the Revenue Commissioners;35

‘preliminary tax’ means the amount of tax which achargeable person is required to pay in accordancewith section 959AN;

‘return’ means the return which is required to beprepared and delivered in accordance with Chap-40ter 3;

‘Revenue assessment’ shall be construed inaccordance with section 959C;

‘Revenue officer’ means an officer of theRevenue Commissioners;45

‘self assessment’ means an assessment to tax madeby a chargeable person, or in relation to a charge-able person, in accordance with Chapter 4;

‘specified provisions’ means sections 877 to 881,section 884, paragraphs (a) and (b) of section50888(2), section 1023, and section 1031H;

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‘specified return date for the accounting period’shall be construed in accordance with paragraph(b) of the definition of specified return date forthe chargeable period;

‘specified return date for the chargeable period’ 5means—

(a) in relation to a tax year for income taxor capital gains tax purposes, 31October in the tax year following thatyear, 10

(b) in relation to an accounting period ofa company—

(i) subject to subparagraphs (ii) and(iii), the last day of the period of9 months starting on the day 15immediately following the end ofthe accounting period, but in anyevent not later than day 21 of themonth in which that period of 9months ends, 20

(ii) where the accounting period endson or before the date the windingup of the company starts and thespecified return date in respect ofthat accounting period would, 25apart from this subparagraph, fallon a day after the date the wind-ing up started but not within aperiod of 3 months after that date,the day which falls 3 months after 30the date the winding up startedbut in any event not later than day21 of the month in which thatperiod of 3 months ends, and

(iii) where, in relation to the accounting 35period, a return is made by elec-tronic means in accordance withChapter 6 of Part 38 and any pay-ment which the company isrequired to make in accordance 40with the provisions of the Acts ismade by such electronic means asare required by the RevenueCommissioners—

(I) in circumstances other than 45those referred to in subpara-graph (ii), the last day of theperiod of 9 months startingon the day immediately fol-lowing the end of the 50accounting period, but in anyevent not later than day 23 ofthe month in which thatperiod of 9 months ends pro-vided that both the return 55

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and the payment is made bythat day,

(II) in the circumstances referredto in subparagraph (ii), theday which falls 3 months after5the date the winding upstarted but in any event notlater than day 23 of themonth in which that period of3 months ends provided that10both the return and the pay-ment is made by that day;

‘specified return date for the tax year’ shall be con-strued in accordance with paragraph (a) of thedefinition of specified return date for the charge-15able period;

‘tax’, other than in section 959G, means anyincome tax, corporation tax, capital gains tax orany other levy or charge which under the Acts isplaced under the care and management of the20Revenue Commissioners;

‘tax credit’ in relation to a person and an Act,means an amount authorised by the Act to be setagainst, or deducted from, the amount of taxchargeable on the person so as to reduce the25amount of tax otherwise payable by the person;

‘tax year’ means a year of assessment.

Supplementalinterpretationprovisions.

959B.—(1) For the purposes of the meaningassigned to ‘chargeable person’ in section 959A, itdoes not include a person—30

(a) whose only source or sources of incomefor a tax year is or are sources theincome from which consists of emolu-ments to which Chapter 4 of Part 42applies, but for this purpose a person35who, in addition to such source orsources of income, has another sourceor other sources of income shall bedeemed for the tax year to be a personwhose only source or sources of40income for the tax year is or aresources the income from which consistsof emoluments to which Chapter 4 ofPart 42 applies if the income from thatother source or those other sources is45taken into account in determining theamount of his or her tax credits andstandard rate cut-off point for the taxyear applicable to those emoluments,and, for the purposes of deciding50whether such income should be sotaken into account, the Revenue Com-missioners may have regard to theamount for that, or any previous, taxyear of the income of the person from55that other source or those other

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sources before deductions, losses,allowances and other reliefs,

(b) who for the tax year has been excludedby a Revenue officer from the require-ments of Chapter 3 by reason of a 5notice given under section 959N, or

(c) who is chargeable to tax for the tax yearby reason only of section 237, 238 or239,

but paragraph (a) shall not apply to a person who 10is a director or, in the case of a person to whomsection 1017 or 1031C applies, whose spouse orcivil partner is a director (within the meaning ofsection 116) of a body corporate other than a bodycorporate which during a period of 3 years ending 15on 5 April in the tax year—

(i) was not entitled to any assets other thancash on hands, or a sum of money ondeposit within the meaning of section895, not exceeding €130, 20

(ii) did not carry on a trade, business orother activity including the making ofinvestments, and

(iii) did not pay charges on income withinthe meaning of section 243. 25

(2) (a) In the Acts (other than in this Part), anyreference however expressed to a per-son being assessed to tax, to an assess-ment being made on a person, or to aperson being charged to tax by an 30assessment, shall be construed asincluding a reference to a person beingso assessed or so charged by a selfassessment made under Chapter 4.

(b) For the purposes of paragraph (a), the 35reference to assessment and self assess-ment includes an amended assessmentand an amended self assessment.

(3) (a) Where any obligation or requirement isimposed on a person in any capacity 40under this Part and a correspondingobligation or requirement is imposedon that person in another capacity, thedischarge of any one of those obli-gations or requirements shall not 45release the person from the other obli-gation or requirement.

(b) A person shall not in any capacity havean obligation or requirement imposedon that person under this Part by 50reason only that such obligation orrequirement is imposed on that personin any other capacity.

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(c) Where but for any of the subsequentprovisions of this Part any such obli-gation or requirement would havebeen imposed on a person in morethan one capacity, a release from such5obligation or requirement under any ofthose provisions by reason of any factor circumstance applying in relation tothat person’s liability to tax in any onecapacity shall not release that person10from such obligation or requirement asis imposed on that person in a capacityother than that in which that fact orcircumstance applies.

Chapter 215

Assessments: General Rules

Making ofassessments:general rules.

959C.—(1) Any assessment made under theActs, other that a self assessment, shall be madeby or on behalf of the Revenue Commissionersand shall be known as a ‘Revenue assessment’.20

(2) A Revenue assessment shall be made by aRevenue officer.

(3) An assessment made under an Act shall bean assessment to tax in relation to a person for achargeable period and all tax that falls to be25charged on the person under the Act for thechargeable period shall be included in oneassessment.

(4) An assessment to tax in relation to a personshall be an assessment, in accordance with the30Acts, for the chargeable period involved of—

(a) the amount of the income, profits orgains or, as the case may be, charge-able gains arising to the person forthe period,35

(b) the amount of tax chargeable on theperson for the period,

(c) the amount of tax payable by the personfor the period, and

(d) the balance of tax, taking account of any40amount of tax paid directly by the per-son to the Collector-General for theperiod, which under the Acts—

(i) is due and payable by the person tothe Revenue Commissioners for45the period, or

(ii) is repayable by the Revenue Com-missioners to the person for theperiod.

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(5) Subject to section 959E(5), an assessment totax in relation to a person for a chargeable periodmay relate to—

(a) tax chargeable under more than one ofthe Acts, and 5

(b) an amount due under an enactmentother than the Acts which by virtue ofthat enactment is to be assessed andcharged as if it were an amount ofincome tax. 10

(6) An assessment to tax in relation to a personshall, where required under section 1084, includethe amount of any surcharge due for the charge-able period.

Record ofassessmentsand generationof notices byelectronicmeans.

959D.—(1) The Revenue Commissioners shall 15keep a record of—

(a) each Revenue assessment made, and

(b) each self assessment made by aRevenue officer in relation to a charge-able person under section 959U. 20

(2) The requirements of subsection (1) shall besatisfied where a Revenue officer enters details ofthe assessment, including the tax charged in theassessment, in an electronic record.

(3) Where a Revenue officer— 25

(a) enters details of an assessment inaccordance with subsection (2), and

(b) a notice of assessment in the name ofanother Revenue officer is producedor generated by electronic means, 30

the Revenue officer whose name appears on thenotice shall, for the purposes of the Acts, bedeemed to have—

(i) other than where section 959U(3)applies, made the assessment to which 35the notice relates,

(ii) where the notice relates to a Revenueassessment, made the assessment tothe best of his or her judgement, and

(iii) given the notice that was so issued, pro- 40duced or generated.

Notice ofassessment byRevenueofficer.

959E.—(1) Where a Revenue assessment ismade or a self assessment is made by a Revenueofficer in relation to a chargeable person undersection 959U, a Revenue officer shall give notice 45to the person assessed of the assessment made.

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(2) Notice of an assessment, which is given bya Revenue officer, may be given in writing or byelectronic means.

(3) Where a return is prepared and delivered inaccordance with section 959L by another person5acting under a chargeable person’s authority, acopy of the notice of assessment shall be given tothat other person.

(4) Subject to subsection (5) and section959AC, a notice of assessment given by a Revenue10officer to a person for a chargeable period shallinclude details of—

(a) the amount of the income, profits orgains or, as the case may be, charge-able gains arising to the person for15the period,


(c) the amount of tax payable by the personfor the period,20

(d) the balance of tax, taking account of anyamount of tax paid directly by the per-son to the Collector-General for theperiod, which under the Acts—

(i) is due and payable by the person to25the Revenue Commissioners forthe period, or

(ii) is repayable by the Revenue Com-missioners to the person for theperiod,30

(e) the amount of any surcharge which,under section 1084, is required to beincluded in the assessment,

(f) the name of the Revenue officer who isgiving the notice and the address of the35Revenue office at which that officer isbased, and

(g) the time allowed for giving notice ofappeal against the assessment to whichthe notice relates.40

(5) (a) Where an assessment relates to taxchargeable under more than one of theActs, the notice of assessment shallidentify the amount of tax chargeableunder each of the Acts.45

(b) Where by virtue of an enactment otherthan the Acts, an amount due underthat enactment is to be assessed andcharged as if it were an amount ofincome tax, the notice of assessment50

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shall identify the amount so chargeableby virtue of that enactment.

(6) A notice of assessment may include detailsof one or more of the following for the chargeableperiod involved: 5

(a) the Case or Schedule under which anamount of income, profits or gains hasbeen charged in the assessment;

(b) the provision of the Act by virtue ofwhich an amount of income, profits or 10gains or, as the case may be, charge-able gains has been charged in theassessment;

(c) the amount of any allowance,deduction, relief or tax credit to which 15the person assessed is entitled for theperiod;

(d) the calculation of the amount of taxchargeable on the person for theperiod; 20

(e) the calculation of the amount of taxpayable by the person for the period;

(f) the calculation of the balance of taxpayable by, or repayable to, the personfor the period. 25

Doubleassessment.

959F.—(1) Where it appears to the satisfactionof the Revenue Commissioners that a person,either on the person’s own account or on behalfof another person, has been assessed to tax morethan once for the same chargeable period for the 30same cause and on the same account, they shallvacate the whole, or the part, of any assessment asappears to them to constitute a double assessment.

(2) A person who, either on the person’s ownaccount or on behalf of another person, has been 35assessed to tax and is again assessed for the samechargeable period for the same cause and on thesame account, may apply for relief to the RevenueCommissioners who, on proof to their satisfactionof the double assessment, shall cause the assess- 40ment, or so much of the assessment as constitutesa double assessment, to be vacated.

(3) Where it is proved to the satisfaction of theRevenue Commissioners that any double assess-ment has been made and that payment has been 45made on both assessments, they shall repay theamount of the overpayment to the applicant not-withstanding any limitation in section 865(4) onthe time within which a claim for a repayment oftax is required to be made. 50

(4) Where a person is aggrieved by a decisionof the Revenue Commissioners not to grant relief

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under this section, the provisions of section 949shall apply to such decision as if it were a determi-nation made on a matter referred to in section 864.

(5) Anything required to be done under thissection by the Revenue Commissioners may be5done by a Revenue officer.

Transmissionto Collector-General ofparticulars ofsums to becollected.

959G.—(1) In this section—

‘assessment’ has the same meaning as in Chapter1A of Part 42 and, by virtue of section 959B(2),includes a self assessment;10

‘tax’ has the same meaning as in Chapter 1A ofPart 42.

(2) After assessments to tax have been made, aRevenue officer shall transmit particulars of thesums to be collected to the Collector-General or15to a Revenue officer nominated in writing undersection 960B for collection.

(3) The entering by a Revenue officer of detailsof an assessment to tax and of the tax charged insuch an assessment in an electronic record from20which the Collector-General or a Revenue officernominated in writing under section 960B mayextract such details by electronic means shall con-stitute transmission of such details by a Revenueofficer to the Collector-General or to the Revenue25officer nominated in writing under section 960B.

Amendedassessment andnotice ofamendedassessment.

959H.—For the purposes of the Acts, the otherprovisions of this Chapter shall with any necessarymodifications apply in like manner to an amendedassessment and a notice of an amended assessment30as it applies to an assessment and a notice ofassessment.

Chapter 3

Chargeable Persons: Returns

Obligation tomake a return.

959I.—(1) Every chargeable person shall as35respects a chargeable period prepare and deliverto the Collector-General on or before the speci-fied return date for the chargeable period a returnin the prescribed form.

(2) The prescribed form referred to in subsec-40tion (1) may include such matters in relation togift tax and inheritance tax as may be required bythat form.

(3) Where under this Chapter a person deliversa return to the Collector-General, the person shall45be deemed to have been required by a noticeunder section 877 to deliver a statement contain-ing the matters and particulars contained in thereturn or to have been required by a notice undersection 879, 880 or 884 to deliver the return, as the50case may be.

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(4) A chargeable person shall prepare anddeliver to the Collector-General, a return for achargeable period as required by this Chapter not-withstanding that the chargeable person has notreceived a notice to prepare and deliver a state- 5ment or return for that period under section 877,879, 880 or 884, as the case may be.

(5) Nothing in the specified provisions or in anotice given under any of those provisions shalloperate so as to require a chargeable person to 10deliver a return for a chargeable period on a dateearlier than the specified return date for thechargeable period.

Requirementsfor returns forincome taxand capitalgains taxpurposes.

959J.—In the case of a chargeable person whois chargeable to income tax or capital gains tax 15for a tax year, the return required by this Chaptershall include—

(a) all such matters and particulars as wouldbe required to be contained in a state-ment delivered pursuant to a notice 20given to the chargeable person undersection 877, if the period specified insuch notice were the tax year,

(b) where the chargeable person is an indi-vidual who is chargeable to income tax 25or capital gains tax for a tax year, inaddition to those matters and part-iculars referred to in paragraph (a), allsuch matters and particulars as wouldbe required to be contained in a return 30for the tax year delivered pursuant toa notice given to the chargeable personunder section 879, and

(c) such further particulars, including part-iculars relating to the preceding tax 35year where the profits or gains of thatpreceding year are determined inaccordance with section 65(3), as maybe required by the prescribed form.

Requirementsfor returns forcorporationtax purposes.

959K.—In the case of a chargeable person who 40is chargeable to corporation tax for an accountingperiod, the return required by this Chapter shallinclude—

(a) all such matters and particulars inrelation to the accounting period as 45would be required to be contained in areturn delivered pursuant to a noticegiven to the chargeable person undersection 884, and

(b) such further particulars as may be 50required by the prescribed form.

Delivery ofreturn byperson actingunderauthority.

959L.—(1) A return required by this Chaptermay be prepared and delivered by the chargeable

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person or by another person acting under thechargeable person’s authority in that regard.

(2) Where a return is prepared and deliveredby that other person, the Acts shall apply as if ithad been prepared and delivered by the charge-5able person.

(3) A return purporting to be prepared anddelivered by or on behalf of any chargeable personshall for the purposes of the Acts be deemed tohave been prepared and delivered by that person10or by that person’s authority, as the case may be,unless the contrary is proved.

Delivery ofreturn byprecedentpartner.

959M.—The precedent partner of any partner-ship shall—

(a) be deemed to be a chargeable person15for the purposes of this Chapter, and

(b) as respects any chargeable period,deliver to the Collector-General on orbefore the specified return date forthat chargeable period the return20which that partner would be requiredto deliver for that period under section880, if notice under that section hadbeen given before that specified date.

Exclusion fromobligation todeliver areturn.

959N.—(1) A Revenue officer may exclude a25person from the application of this Chapter by giv-ing the person a notice in writing stating that theperson is excluded from its application.

(2) The notice shall have effect for such charge-able period or periods or until such chargeable30period or until the happening of such event as isspecified in the notice.

(3) Where a person who has been given anotice under this section is chargeable to capitalgains tax for any chargeable period, this section35shall not operate so as to remove the person’s obli-gation under this Chapter to make a return of theperson’s chargeable gains for that chargeableperiod.

Failure todeliver areturn.

959O.—(1) Any provision of the Acts relating40to the taking of any action on the failure of a per-son to deliver a statement or return pursuant to anotice given under any of the sections referred toin section 959I(3) shall apply to a chargeable per-son in a case where such a notice has not been45given as if the chargeable person had been givena notice on the specified return date for thechargeable period under such one or more ofthose sections as is appropriate to the provisionin question.50

(2) A certificate signed by a Revenue officerwhich certifies that he or she has examined the

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relevant records and that it appears from thoserecords—

(a) that as respects a chargeable period anamed person is a chargeable person,and 5

(b) that on or before the specified returndate for the chargeable period a returnin the prescribed form was notreceived from that chargeable person,

shall be evidence until the contrary is proved that 10the person so named is a chargeable person asrespects that chargeable period and that that per-son did not on or before the specified return datedeliver that return.

(3) A certificate certifying as provided by sub- 15section (2) and purporting to be signed by aRevenue officer may be tendered in evidencewithout proof and shall be deemed until the con-trary is proved to have been signed by such officer.

(4) Sections 1052 and 1054 shall apply to a fail- 20ure by a chargeable person to deliver a return inaccordance with this Chapter as they apply to afailure to deliver a return referred to in section1052.

Expression ofdoubt.

959P.—(1) In this section— 25

‘law’ means one or more provisions of the Acts;

‘letter of expression of doubt’, in relation to amatter, means a communication by written or elec-tronic means, as appropriate, which—

(a) sets out full details of the facts and cir- 30cumstances of the matter,

(b) specifies the doubt and the law givingrise to the doubt,

(c) identifies the amount of tax in doubt inrespect of the chargeable period to 35which the expression of doubt relates,

(d) is accompanied by supporting docu-mentation as relevant, and

(e) is clearly identified as a letter ofexpression of doubt for the purposes of 40this section,

and reference to ‘an expression of doubt’ shall beconstrued accordingly.

(2) Where a chargeable person is in doubt as tothe correct application of the law to any matter to 45be contained in a return required for a chargeableperiod by this Chapter, which could—

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(a) give rise to a liability to tax by that per-son, or

(b) affect that person’s liability to tax orentitlement to an allowance,deduction, relief or tax credit,5

then, the chargeable person may—

(i) prepare the return for the chargeableperiod to the best of that person’sbelief as to the correct application ofthe law to the matter, and deliver the10return to the Collector-General, and

(ii) include a letter of expression of doubtwith the return.

(3) This section applies only if the returnreferred to in subsection (2) is delivered to the15Collector-General on or before the specifiedreturn date for the chargeable period involved.

(4) Where a return is delivered in accordancewith subsection (2), a self assessment shall, whererequired under section 959R, be included in the20return by reference to the particulars included inthe return.

(5) Subject to subsection (6), where a letter ofexpression of doubt is included with a return deliv-ered by a chargeable person to the Collector-25General for a chargeable period—

(a) that person shall be treated as making afull and true disclosure with regard tothe matter involved, and

(b) any additional tax arising from the30amendment of an assessment for thechargeable period by a Revenueofficer to give effect to the correctapplication of the law to that mattershall be due and payable in accordance35with section 959AU(2).

(6) Subsection (5) does not apply where aRevenue officer does not accept as genuine anexpression of doubt in respect of the applicationof the law to a matter, and an expression of doubt40shall not be accepted as genuine in particularwhere—

(a) the Revenue Commissioners haveissued general guidelines concerningthe application of the law in similar cir-45cumstances,

(b) the officer is of the opinion that thematter is otherwise sufficiently freefrom doubt as not to warrant anexpression of doubt, or50

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(c) the officer is of the opinion that thechargeable person was acting with aview to the evasion or avoidance oftax.

(7) Where a Revenue officer does not accept 5an expression of doubt as genuine, he or she shallnotify the chargeable person accordingly and anyadditional tax arising from the amendment of anassessment for the chargeable period by aRevenue officer to give effect to the correct appli- 10cation of the law to the matter involved shall bedue and payable in accordance with section959AU(1).

(8) Where a chargeable person is aggrieved bya decision of a Revenue officer that the person’s 15expression of doubt is not genuine, the provisionsof section 949 shall apply to such decision as if itwere a determination made on a matter referredto in section 864.

Miscellaneous(Chapter 3).

959Q.—(1) (a) This Chapter does not affect the 20giving of a notice under any of thespecified provisions and does notremove from any person any obli-gation or requirement imposed on theperson by such a notice. 25

(b) The giving of a notice under any of thespecified provisions to a person doesnot remove from that person any obli-gation to prepare and deliver a returnunder this Chapter. 30

(c) The giving by a chargeable person of anotice pursuant to section 876 does notremove from the person an obligationto prepare and deliver a return underthis Chapter. 35

(2) (a) The Collector-General may designatean address for the delivery of returnswhich in accordance with this Chapterare required to be delivered to the Col-lector-General. 40

(b) Where the Collector-General desig-nates an address under paragraph (a),that address shall be published in IrisOifigiúil as soon as is practicable aftersuch designation. 45

Chapter 4

Chargeable Persons: Self-Assessments

Inclusion ofself assessmentin return.

959R.—(1) Subject to sections 959S and 959T,every return prepared and delivered under Chap-ter 3 in respect of a chargeable period shall include 50a self assessment by the chargeable person towhom the return relates.

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(2) A self assessment shall be made in, and aspart of, the return and shall include such details asthe Revenue Commissioners may require.

(3) The details referred to in subsection (2)shall include an assessment by the chargeable per-5son, in accordance with the Acts, for the charge-able period involved of—

(a) the amount of the income, profits orgains or, as the case may be, charge-able gains arising to the person for10the period,


(c) the amount of tax payable by the personfor the period, and15

(d) the balance of tax, taking account of anyamount of tax paid directly by the per-son to the Collector-General for theperiod, which under the Acts—

(i) is due and payable by the person to20the Revenue Commissioners forthe period, or

(ii) is repayable by the Revenue Com-missioners to the person for theperiod.25

(4) (a) Where a self assessment relates to taxchargeable on a person under morethan one of the Acts, the self assess-ment shall identify the amount of taxchargeable under each of the Acts.30

(b) Where by virtue of an enactment otherthan the Acts, an amount due underthat enactment is to be assessed andcharged as if it were an amount ofincome tax, the self assessment shall35include such amount and shall identifythe amount so chargeable by virtue ofthat enactment.

(c) A self assessment shall include andidentify the amount of any surcharge40which, under section 1084, is requiredto be included in the assessment forthe chargeable period.

(5) Subject to subsection (6), where the obli-gation to make a return for a chargeable period is45treated as fulfilled under Chapter 6 of Part 38 andthe chargeable person—

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(a) includes a self assessment in the returnin accordance with an indicative taxcalculation provided by the electronicsystem that is made available by theRevenue Commissioners for the pur- 5poses of that Chapter, and

(b) pays tax in accordance with that cal-culation,

then, in the event that the indicative tax calcu-lation is incorrect— 10

(i) any additional tax due for the charge-able period that arises by reason of theindicative tax being incorrect shall bedeemed to be due and payable notlater than one month from the date of 15amendment of the self assessment, and

(ii) Part 47 does not apply to the extent thatthe return included a self assessmentthat was in accordance with the indica-tive tax calculation. 20

(6) Subsection (5) applies where the chargeableperson retains either an electronic or printedrecord of the indicative tax calculation and, onrequest from a Revenue officer, submits a copy ofthat record, and the various elements of the calcu- 25lation are in accordance with the information,statements and particulars provided in the return.

Option for selfassessment tobe made byRevenue.

959S.—(1) An individual who is chargeable toincome tax or capital gains tax for a tax year shallnot be required to comply with section 959R 30where a return, which is delivered by means otherthan electronic means, is delivered on or before 31August in the tax year following the tax year towhich the return relates.

(2) Where subsection (1) applies, a Revenue 35officer shall make the self assessment on behalf ofthe chargeable person in accordance with section959U.

Selfassessment byperson actingunderauthority.

959T.—Where a return is prepared and deliv-ered in accordance with section 959L by another 40person acting under the chargeable person’sauthority—

(a) the self assessment required undersection 959R shall be made by thatother person, and 45

(b) where the self assessment is so made bythat other person—

(i) the Acts apply as if it had beenmade by the chargeable person,and 50

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(ii) a self assessment purporting tohave been made by or on behalfof any chargeable person shall forthe purposes of the Acts bedeemed to have been made by5that person or by that person’sauthority, as the case may be,unless the contrary is proved.

Selfassessment byRevenueofficer inrelation tochargeableperson.

959U.—(1) Where a chargeable person, or aperson to whom section 959T applies, delivers a10return but does not include a self assessment inthe return, a Revenue officer, subject to section959AA(1)—

(a) shall, where section 959S applies, and

(b) may, in any other case,15

make the self assessment in relation to the charge-able person.

(2) Where a self assessment is made under thissection, a Revenue officer shall give notice of theassessment in accordance with section 959E.20

(3) Any self assessment made by a Revenueofficer under this section shall be deemed to be aself assessment made by the chargeable personand references in the Acts to the self assessment ofa chargeable person shall be treated as including a25self assessment made under this section.

Amendmentby chargeableperson ofreturn and ofself assessmentin return.

959V.—(1) Subject to the provisions of thissection, a chargeable person may, by notice to theRevenue Commissioners, amend the return deliv-ered by him or her for a chargeable period.30

(2) Where a return is amended in accordancewith subsection (1), the chargeable person shall aspart of that notice amend the self assessment forthe chargeable period at the same time.

(3) Subject to subsection (4), notice under this35section shall be given in writing to a Revenueofficer in the Revenue office dealing with the taxaffairs of the chargeable person.

(4) Notice under this section may be given byelectronic means where the facility to give notice40by electronic means is made available by theRevenue Commissioners.

(5) Where another person, as referred to insection 959L, is acting under the chargeable per-son’s authority—45

(a) notice under subsections (1) and (2)may be given by that other person, and

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(b) where notice is so given by that otherperson—

(i) the Acts apply as if the return andthe self assessment had beenamended by the chargeable per- 5son, and

(ii) a return and a self assessment pur-porting to have been amended byor on behalf of any chargeableperson shall for the purposes of 10the Acts be deemed to have beenamended by that person or by thatperson’s authority, as the casemay be, unless the contrary isproved. 15

(6) Subject to subsection (7), notice under thissection may be given not later than one year afterthe specified return date for the chargeable period,but only if the amendment to which the noticerelates is not prohibited— 20

(a) by any other provision of the Acts, or

(b) by virtue of the operation of a periodshorter than that period of one year inany such provision.

(7) Notice under this section shall not be given 25in relation to a return and a self assessment aftera Revenue officer has started to make enquiriesunder section 959Z in relation to the return or selfassessment or after he or she has commenced anaudit or other investigation which relates to the 30tax affairs of the person to whom the return or selfassessment relates for the chargeable periodinvolved.

Making of selfassessment inaccordancewith return.

959W.—(1) A self assessment made by achargeable person under section 959R shall be 35made by reference to the particulars contained inthe chargeable person’s return for the chargeableperiod involved.

(2) A self assessment amended by a chargeableperson under section 959V shall be amended by 40reference to the particulars contained in thechargeable person’s return, as amended by noticeunder that section, for the chargeable periodinvolved.

(3) A self assessment made by a Revenue 45officer in relation to a chargeable person undersection 959U shall be made by reference to theparticulars contained in the chargeable person’sreturn for the chargeable period involved.

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(4) Nothing in this Chapter prevents a Revenueofficer from making a Revenue assessment on achargeable person under Chapter 5 and where aRevenue officer makes an assessment under thatChapter any self assessment previously made5under this Chapter shall, for the purposes ofdetermining the chargeable person’s liability to taxfor the chargeable period, be treated as if it hadnot been made and shall be void for suchpurposes.10

(5) Nothing in this Chapter prevents a Revenueofficer from amending, under Chapter 5, a selfassessment previously made under this Chapter.

Penalty forfailure tomake oramend selfassessment.

959X.—(1) A person who is required under thisChapter to make a self assessment in a return pre-15pared and delivered under Chapter 3 for a charge-able period and who does not make the self assess-ment in the return shall be liable to a penalty of€250.

(2) A person who is required under this Chap-20ter to amend a self assessment in a returnamended by notice under section 959V for achargeable period and who does not amend theself assessment in the return shall be liable to apenalty of €100.25

Chapter 5

Revenue Assessments and Enquiries and RelatedTime Limits

Chargeablepersons andother persons:assessmentmade oramended byRevenueofficer.

959Y.—(1) Subject to the provisions of thisChapter, a Revenue officer may at any time—30

(a) make a Revenue assessment on a per-son for a chargeable period in suchsum as, according to the officer’s bestjudgment, ought to be charged on theperson,35

(b) amend a Revenue assessment on, or aself assessment in relation to, a personfor a chargeable period in such manneras he or she considers necessary, not-withstanding that—40

(i) tax may have been paid or repaidin respect of the assessment, or

(ii) the assessment may have beenamended on a previous occasionor on previous occasions.45

(2) For the purpose of making any assessmenton a chargeable person for a chargeable period orfor the purpose of amending such an assessment,a Revenue officer—

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(a) may accept either in whole or in partany statement or other particular con-tained in a return delivered by thechargeable person for that chargeableperiod, and 5

(b) may assess any amount of income, pro-fits or gains or, as the case may be,chargeable gains, or allow any allow-ance, deduction, relief or tax credit byreference to such statement or 10particular.

(3) The amendment of an assessment by aRevenue officer does not preclude that Revenueofficer or any other Revenue officer from furtheramending the assessment in such manner as he or 15she considers necessary.

(4) (a) Where any amount of income, profits orgains or, as the case may be, charge-able gains is omitted from, or not prop-erly reflected in, an assessment for a 20chargeable period or the tax stated inan assessment is less than the tax pay-able by the chargeable person for thechargeable period, then a Revenueofficer may make such amendments to 25the assessment as are necessary toensure that the assessment includes thecorrect amount or to ensure that thetax stated in the assessment is equal tothe tax payable by the chargeable per- 30son for the chargeable period.

(b) For the purposes of paragraph (a), theamendment of an assessment by aRevenue officer may include theaddition of an amount of income, pro- 35fits or gains or, as the case may be,chargeable gains that is not reflected inthe assessment.

Right ofRevenueofficer tomakeenquiries.

959Z.—(1) A Revenue officer may, subject tothis section, make such enquiries or take such 40actions within his or her powers as he or she con-siders necessary to satisfy himself or herself asto—

(a) whether a person is chargeable to taxfor a chargeable period, 45

(b) whether a person is a chargeable personas respects a chargeable period,

(c) the amount of income, profit or gainsor, as the case may be, chargeablegains in relation to which a person is 50chargeable to tax for a chargeableperiod, or

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(d) the entitlement of a person to anyallowance, deduction, relief or tax cre-dit for a chargeable period.

(2) The making of an assessment or the amend-ment of an assessment in accordance with section5959Y(2) by reference to any statement or part-icular referred to in paragraph (a) of that sectiondoes not preclude a Revenue officer from, subjectto this section, making such enquiries or takingsuch actions within his or her powers as he or she10considers necessary to satisfy himself or herself asto the accuracy or otherwise of that statement orparticular.

(3) Subject to subsection (4), any enquiries oractions to which either subsection (1) or (2)15applies shall not be made in the case of a charge-able person for a chargeable period at any timeafter the expiry of the period of 4 years commen-cing at the end of the chargeable period in whichthe chargeable person has delivered a return for20the chargeable period.

(4) Enquiries and actions to which either sub-section (1) or (2) applies may be made at any timein relation to a person or a return for a chargeableperiod where—25

(a) any of the circumstances referred to inparagraph (a), (b) or (c) of section959AC(2) apply,

(b) a Revenue officer has reasonablegrounds for believing, in accordance30with section 959AD(3), that any formof fraud or neglect has been committedby or on behalf of the person in con-nection with or in relation to tax duefor the chargeable period.35

(5) A chargeable person who is aggrieved byany enquiry made or action taken by a Revenueofficer under this section for a chargeable period,after the expiry of the period referred to in subsec-tion (3) in respect of that chargeable period, on40the grounds that the chargeable person considersthat the Revenue officer is precluded from makingthat enquiry or taking that action by reason of thatsubsection may, by notice in writing given to theRevenue officer within 30 days of the officer mak-45ing that enquiry or taking that action, appeal tothe Appeal Commissioners, and the Appeal Com-missioners shall hear the appeal in all respects asif it were an appeal against an assessment.

(6) Any action required to be taken by the50chargeable person and any further action pro-posed to be taken by a Revenue officer pursuantto the officer’s enquiry or action shall be sus-pended pending the determination of the appeal.

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(7) If on the hearing of the appeal the AppealCommissioners determine that the Revenueofficer was precluded from making the enquiry ortaking action by reason of subsection (3), then thechargeable person shall not be required to take 5any action pursuant to the officer’s enquiry oraction and the officer shall be prohibited from pur-suing his enquiry or action.

(8) If on the hearing of the appeal the AppealCommissioners determine that the Revenue 10officer was not precluded from making the enquiryor taking action by reason of subsection (3), thenthe officer may continue with his or her enquiryor action.

(9) Nothing in this section affects the operation 15of section 811 or 811A.

Chargeablepersons: timelimit onassessmentmade oramended byRevenueofficer.

959AA.—(1) Where a chargeable person hasdelivered a return for a chargeable period and hasmade in the return a full and true disclosure ofall material facts necessary for the making of an 20assessment for the chargeable period—

(a) an assessment for that period, or

(b) an amendment of an assessment forthat period,

shall not be made by a Revenue officer on the 25chargeable person after the end of 4 years com-mencing at the end of the chargeable period inwhich the return is delivered and—

(i) no additional tax shall be payable by thechargeable person after the end of that 30period of 4 years, and

(ii) no tax shall be repaid after the end of aperiod of 4 years commencing at theend of the chargeable period for whichthe return is delivered, 35

by reason of any matter contained in the return.

(2) Nothing in this section prevents a Revenueofficer from, at any time, amending an assessmentfor a chargeable period—

(a) where the return for the period does not 40contain a full and true disclosure of allmaterial facts necessary for the makingof an assessment for that period,

(b) to give effect to a determination on anyappeal against an assessment or against 45a determination to which section 949applies,

(c) to take account of any fact or matterarising by reason of an event occurringafter the return is delivered, 50

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(d) to correct an error in calculation in theassessment, or

(e) to correct a mistake of fact whereby anymatter in the assessment does notproperly reflect the facts disclosed by5the chargeable person,

and tax shall be paid or repaid (notwithstandingany limitation in section 865(4) on the time withinwhich a claim for a repayment of tax is requiredto be made) where appropriate in accordance with10any such amendment.

(3) Nothing in this section affects the operationof section 804(3), 811, 811A or 1048.

Persons otherthanchargeablepersons: timelimit onRevenueassessment andamendedassessment.

959AB.—(1) Subject to the other provisions ofthis section and section 997, a Revenue assessment15on a person other than a chargeable person maybe made or amended by a Revenue officer at anytime not later than 4 years after the end of thechargeable period to which the assessment relates.

(2) In a case in which emoluments to which20subsection (3) applies are received in a year ofassessment subsequent to that for which they areassessable, a Revenue assessment on a personother than a chargeable person may be made oramended by a Revenue officer at any time not25later than 4 years after the end of the year ofassessment in which the emoluments werereceived.

(3) The emoluments to which this subsectionapplies are emoluments within the meaning of30section 112(2), including any payments chargeableto tax by virtue of section 123 and any sums whichby virtue of Chapter 3 of Part 5 are to be treatedas perquisites of a person’s office or employment,being emoluments, payments or sums other than35those taken into account in an assessment toincome tax for the year of assessment in whichthey are received and, for the purposes of subsec-tion (2)—

(a) any such payment shall, notwithstanding40anything in section 123(4), be treatedas having been received at the time itwas actually received, and

(b) any such sums which are not actuallypaid to that person shall be treated as45having been received at the time whenthe relevant expenses were incurred orare treated for the purposes of Chapter3 of Part 5 as having been incurred.

(4) Nothing in this section affects the operation50of section 811 or 811A.

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Chargeablepersons:Revenueassessment andamendment ofassessments inabsence ofreturn, etc.

959AC.—(1) In this section ‘information’includes information received from a member ofthe Garda Síochána.

(2) Notwithstanding section 959AA, where inrelation to a chargeable person— 5

(a) the person fails to deliver a return for achargeable period,

(b) a Revenue officer is not satisfied withthe sufficiency of a return delivered bythe person having regard to any infor- 10mation received in that regard, or

(c) a Revenue officer has reasonablegrounds for believing that a returndelivered by the person does not con-tain a full and true disclosure of all 15material facts necessary for the makingof an assessment for the chargeableperiod,

then a Revenue officer may, at any time, make aRevenue assessment on the chargeable person for 20the chargeable period in such sum as, accordingto the best of the officer’s judgment, ought to becharged on that person.

(3) Where a Revenue officer makes a Revenueassessment on a chargeable person under this 25section in the event of the failure of the person todeliver a return, it shall not be necessary to set outin the notice of assessment any particulars otherthan the amount of tax payable by the person forthe chargeable period on the basis on that 30assessment.

(4) In any of the circumstances referred to insubsection (2), a Revenue officer may, at any time,amend a Revenue assessment on, or a self assess-ment in relation to, a chargeable person for the 35chargeable period involved in such manner as theofficer considers necessary.

Chargeablepersons andother persons:Revenueassessment andamendment ofassessmentswhere there isfraud orneglect.

959AD.—(1) In this section ‘neglect’ meansnegligence or a failure to give any notice, to makeany return, statement or declaration, or to produce 40or furnish any list, document or other informationrequired by or under the Acts.

(2) For the purposes of subsection (1), a personshall be deemed not to have failed to do anythingrequired to be done within a limited time if the 45person did it within such further time, if any, asthe Revenue Commissioners or Revenue officerconcerned may have allowed and, where a personhad a reasonable excuse for not doing anythingrequired to be done, the person shall be deemed 50not to have failed to do it if the person did it with-out unreasonable delay after the excuse hadceased.

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(3) Notwithstanding sections 959AA and959AB, where a Revenue officer has reasonablegrounds for believing that any form of fraud orneglect has been committed by or on behalf of aperson in connection with or in relation to tax due5for a chargeable period, a Revenue officer may, atany time, make a Revenue assessment on that per-son for the chargeable period.

(4) An assessment to which this section appliesshall be made by a Revenue officer in such sum10as, according to the best of the officer’s judgment,ought to be charged on the person involved.

(5) In the circumstances referred to in subsec-tion (3), a Revenue officer may, at any time,amend a Revenue assessment on, or a self assess-15ment in relation to, a person for a chargeableperiod in such manner as the officer considersnecessary.

OtherRevenueassessmentsandmiscellaneousmatters.

959AE.—(1) Nothing in this Chapter preventsan inspector or other Revenue officer from mak-20ing an assessment in accordance with—

(a) section 960Q,

(b) section 977(3) or subsection (2) or (3)of section 978, as appropriate, and,notwithstanding Chapter 7, tax speci-25fied in such an assessment shall be dueand payable in accordance withsection 979,

(c) subsection (5A) or (6), as appropriate,of section 980 and, notwithstanding30Chapter 7, tax specified in such anassessment shall be due and payable inaccordance with that section 980, or

(d) section 1042 and, notwithstandingChapter 7, tax specified in such an35assessment shall be due and payable inaccordance with that section.

(2) Subject to subsection (1), an assessmentunder this Chapter shall not be made on a charge-able person for a chargeable period at any time40before the specified return date for the chargeableperiod unless at that time the chargeable personhas delivered a return for the chargeable period.

(3) Nothing in this Chapter affects the right ofan inspector or other Revenue officer to make or45amend an assessment where a provision of theActs (other than this Chapter) includes either aright to assess or charge a person to tax or a rightto make or amend an assessment on a person.

(4) An assessment which is otherwise final and50conclusive shall not for any purpose of the Actsbe regarded as not final and conclusive or as ceas-ing to be final and conclusive by reason only of

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the fact that a Revenue officer has amended ormay amend the assessment.

Chapter 6

Appeals

Chargeablepersons andother persons:appeal inrelation totime limit onassessmentmade oramended byRevenueofficer.

959AF.—(1) A person who is aggrieved by an 5assessment made by a Revenue officer, or theamendment of an assessment by a Revenueofficer, on the grounds that the person considersthat the Revenue officer was precluded from mak-ing the assessment or, as the case may be, the 10amendment—

(a) in the case of a chargeable person, byreason of section 959AA, or

(b) in the case of a person other than achargeable person, by reason of 15section 959AB or section 997,

may appeal against the assessment or amendedassessment on those grounds.

(2) If, on the hearing of the appeal, the AppealCommissioners determine that the officer was pre- 20cluded from making the assessment or, as the casemay be, the amendment, the Acts apply as if theassessment or the amendment, as the case may be,had not been made, and the assessment or theamendment of the assessment as appropriate is 25void.

(3) If, on the hearing of the appeal, the AppealCommissioners determine that the officer was notprecluded from making the assessment or, as thecase may be, the amendment, the assessment or 30the assessment as amended stands, except to theextent that any amount or matter in that assess-ment is the subject of a valid appeal on any othergrounds.

Chargeablepersons: noappeal againstselfassessment.

959AG.—No appeal may be made against— 35

(a) a self assessment made under section959R, section 959T or section 959U,

(b) a self assessment amended undersection 959V,

(c) the amount of any income, profits or 40gains or, as the case may be, charge-able gains, or the amount of any allow-ance, deduction, relief or tax creditspecified in such an assessment.

Chargeablepersons:requirement tosubmit returnand pay tax.

959AH.—(1) Where a Revenue officer makes 45a Revenue assessment, no appeal lies against theassessment until such time as—

(a) where the assessment was made indefault of the delivery of a return, the

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chargeable person delivers the return,and

(b) in all cases, the chargeable person paysor has paid an amount of tax on footof the assessment which is not less than5the tax which—

(i) is payable by reference to any selfassessment included in the charge-able person’s return, or

(ii) where no self assessment is10included, would be payable onfoot of a self assessment if theassessment were made in allrespects by reference to the state-ments and particulars contained in15the return delivered by thechargeable person.

(2) A Revenue officer shall refuse an appli-cation for an appeal unless the requirements ofboth paragraph (a) and (b) of subsection (1) have20been satisfied within the time for bringing anappeal against the assessment.

(3) References in subsection (1) to an amountof tax shall be construed as including any amountof interest which would be due and payable under25section 1080 on that tax at the date of payment ofthe tax, together with any costs incurred or otheramounts which may be charged or levied in pursu-ing the collection of the tax contained in theassessment or the assessment as amended, as the30case may be.

(4) The requirements of this section apply inrelation to an assessment as amended by aRevenue officer as they apply to a Revenue assess-ment made by a Revenue officer.35

Chargeablepersons andother persons:no appealagainst agreedamounts.

959AI.—No appeal may be made against theamount of any income, profits or gains or, as thecase may be, chargeable gains, or the amount ofany allowance, deduction, relief or tax credit speci-fied in an assessment or an amended assessment40made on a person for a chargeable period whereeither—

(a) a Revenue officer has determined theamount by accepting without alter-ation of and without departing from45the statement or statements, or theparticular or particulars with regard toincome, profits or gains or, as the casemay be, chargeable gains, or allow-ances, deductions, reliefs or tax credits50specified in the return delivered by theperson for the chargeable period, or

(b) the amount has been agreed betweenthe Revenue officer and the person, or

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any person authorised by the person inthat behalf, before the making of theassessment or the amendment of theassessment, as the case may be.

Chargeablepersons andother persons:grounds forappeal.

959AJ.—(1) Where an appeal is brought 5against an assessment or an amended assessmentmade on a person for any chargeable period, theperson shall specify in the notice of appeal—

(a) each amount or matter in the assess-ment or amended assessment with 10which the person is aggrieved, and

(b) the grounds in detail of the person’sappeal as respects each such amountor matter.

(2) Where, as respects an amount or matter to 15which a notice of appeal relates, the notice doesnot comply with subsection (1), the notice is, in sofar as it relates to that amount or matter, invalidand the appeal concerned shall, in so far as itrelates to that amount or matter, be deemed not 20to have been brought.

(3) A person is not entitled to rely on anyground of appeal that is not specified in the noticeof appeal unless the Appeal Commissioners, or thejudge of the Circuit Court, as the case may be, are 25or is satisfied that the ground could not reasonablyhave been stated in the notice.

Chargeablepersons andother persons:appeal againstamendedassessment.

959AK.—Subject to the other provisions of thisChapter, where an assessment is amended by aRevenue officer (not being an amendment made 30by reason of the determination of an appeal), theperson assessed may appeal against the assessmentas so amended in all respects as if it were anassessment made on the date of the amendmentand the notice of the assessment as so amended 35were a notice of the assessment, except that theperson shall have no further right of appeal, inrelation to matters other than additions to,deletions from, or alterations in the assessment,made by reason of the amendment, than the per- 40son would have had if the assessment had notbeen amended.

Persons otherthanchargeablepersons: otherrules.

959AL.—Subject to the other provisions of thisChapter, where an appeal is brought against anassessment by a person who is not a chargeable 45person then, pending the determination of theappeal—

(a) an amount of tax shall be payable on thedue date for the payment of tax underthe assessment and shall be the amount 50which results when the appropriate taxcredits (including personal tax creditwhere applicable) due to the personare allowed in calculating the taxcharged in the assessment which does 55

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not relate to the amounts or matterswith which the person assessed isaggrieved, and

(b) that amount of tax shall for the pur-poses of sections 1080 and 1081 be5deemed to be the tax due and payableunder the assessment.

Chapter 7

Chargeable Persons: Preliminary Tax and Datesfor Payment of Tax10

Interpretationandmiscellaneous(Chapter 7).

959AM.—(1) In this Chapter—

‘accounting period’ means an accounting period ofa company;

‘corresponding corporation tax for the precedingaccounting period’, in relation to an accounting15period and a company, means an amount deter-mined by the formula—

T × C

P

where—20

T is the corporation tax payable for the pre-ceding accounting period,

C is the number of days in the accountingperiod, and

P is the number of days in the preceding25accounting period;

‘corresponding income tax for the precedingaccounting period’, in relation to an accountingperiod and a company, means an amount deter-mined by the formula—30

I × C

P

where—

I is the income tax payable under section239 or 241 for the preceding account-35ing period,

C is the number of days in the accountingperiod, and

P is the number of days in the precedingaccounting period;40

‘final instalment’ shall be construed in accordancewith section 959AS(1);

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‘final relevant instalment’ shall be construed inaccordance with section 959AS(5);

‘initial instalment’ shall be construed in accord-ance with section 959AS(1);

‘initial relevant instalment’ shall be construed in 5accordance with section 959AS(5);

‘pre-preceding tax year’, in relation to income taxand a tax year, means the tax year next before thepreceding tax year;

‘relevant accounting period’, in relation to an 10accounting period, means, subject to subsection(2), an accounting period of a company other thana small company;

‘relevant accounting standards’ has the samemeaning as in Schedule 17A; 15

‘relevant company’ means a company in respect ofwhich profits or gains for the purposes of Case Ior II of Schedule D are computed in accordancewith relevant accounting standards, which are, orinclude, relevant accounting standards in relation 20to profits or gains or losses on financial assets orliabilities;

‘relevant limit’, in relation to an accountingperiod, means, subject to subsection (3), €200,000;

‘small company’ shall be construed in accordance 25with subsection (4);

‘tax payable for the initial period’, in relation tocapital gains tax and a tax year, means the tax thatwould be payable by the chargeable person if thetax year ended on 30 November in the year instead 30of 31 December in that year;

‘tax payable for the later period’, in relation tocapital gains tax and a tax year, means the tax pay-able by the chargeable person for the tax year lessthe tax payable for the initial period in relation to 35that year.

(2) An accounting period is not a relevantaccounting period where, but for this subsection,the final instalment of preliminary tax would, byreason of the dates on which the accounting period 40starts and ends, be due and payable in accordancewith section 959AS(2) on or before the date onwhich the initial instalment would be due and pay-able in accordance with that section.

(3) Where the length of an accounting period is 45less than 12 months, the relevant limit in relationto the accounting period shall be proportionatelyreduced.

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(4) A company is a small company in relationto an accounting period if the corresponding cor-poration tax for the preceding accounting perioddoes not exceed the relevant limit in relation tothe accounting period.5

(5) References in this Chapter to the due datefor the payment of an amount of preliminary taxshall, in the case where that tax is due for anaccounting period, other than a relevant account-ing period, of a company, be construed in accord-10ance with section 959AR(1).

(6) References in this Chapter to the due datefor the payment of the initial instalment, or thefinal instalment, of preliminary tax shall, in thecase where that tax is due for a relevant account-15ing period, be construed in accordance withsection 959AS(2).

(7) The provisions of this Chapter apply asrespects chargeable persons only.

(8) The provisions of this Chapter as respects20due dates for payment of tax apply subject tosections 579(4)(b) and 981.

Obligation topaypreliminarytax.

959AN.—(1) Every person who is a chargeableperson as respects any chargeable period is liableto pay to the Collector-General in accordance with25this Chapter the amount of that person’s prelimi-nary tax appropriate to that chargeable period.

(2) The amount of a chargeable person’s pre-liminary tax appropriate to a chargeable period isthe amount of tax which in the opinion of the30chargeable person is likely to become payable bythat person for the chargeable period by reasonof either a self assessment under Chapter 4 or aRevenue assessment under Chapter 5.

(3) Any amount of preliminary tax appropriate35to a chargeable period which is paid by and notrepaid to a chargeable person in any capacity shall,to the extent of the amount of that payment orthe extent of the amount of that payment less anyamount that has been repaid, be treated as a pay-40ment on account of the tax payable by the charge-able person for the chargeable period.

(4) Where—

(a) the tax payable by a company for anaccounting period does not exceed the45relevant limit, and

(b) the accounting period started on thecompany coming within the charge tocorporation tax,

then the preliminary tax appropriate to the50accounting period shall be deemed to be nil and

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neither subsection (3) of section 959AR nor sub-section (4) of section 959AS apply as respects thataccounting period.

(5) This section does not apply to capital gainstax. 5

Date forpayment ofincome tax.

959AO.—(1) Subject to section 959AP, pre-liminary tax appropriate to a tax year for incometax purposes is due and payable on or before 31October in the tax year.

(2) (a) Subject to subsections (3) to (6), income 10tax payable by a chargeable person fora tax year shall be due and payable onor before the specified return date forthe tax year whether or not an assess-ment is made on or by the chargeable 15person for the tax year on or beforethat date.

(b) Where an assessment to income tax fora tax year has not been made on or bya chargeable person on or before the 20specified return date for the tax yearthen the tax specified in any sub-sequent assessment made on or by thechargeable person for that year shallbe deemed to have been due and pay- 25able on or before the specified returndate for the tax year.

(3) Income tax payable by a chargeable personfor a tax year shall be deemed to have been dueand payable on 31 October in the tax year where— 30

(a) the chargeable person has defaulted inthe payment of preliminary tax for thetax year,

(b) the preliminary tax paid by the charge-able person for the tax year is less 35than, or less than the least of, as thecase may be—

(i) 90 per cent of the income tax pay-able by the chargeable person forthe tax year, 40

(ii) the income tax payable by thechargeable person for the preced-ing tax year, and

(iii) in the case of a chargeable personto whom section 959AP applies 45(other than a chargeable person inrelation to whom the amount ofincome tax payable, or taken inaccordance with subsection (4)(a)to be payable, for the pre-preced- 50ing tax year was nil), 105 per centof the income tax payable by the

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chargeable person for the pre-pre-ceding tax year,

or

(c) the preliminary tax payable by thechargeable person for the tax year was5not paid by 31 October in the tax year.

(4) For the purposes of subparagraphs (ii) and(iii) of subsection (3)(b)—

(a) subject to subsection (5), where thechargeable person was not a charge-10able person for the preceding tax yearor for the pre-preceding tax year, theincome tax payable for the precedingyear or the pre-preceding year, as thecase may be, shall be taken to be nil,15

(b) where, after 31 October in a tax year,an amount of additional income tax forthe preceding tax year or, in the case ofa chargeable person to whom section959AP applies, the pre-preceding tax20year becomes payable, that additionalincome tax shall not be taken intoaccount if it became due and payableone month following the amendmentto the assessment or the determination25of the appeal, as the case may be, byvirtue of section 959AU(2) or section959AV(2), and

(c) the tax payable for the preceding taxyear, or in the case of a chargeable per-30son to whom section 959AP applies,the pre-preceding tax year, shall bedetermined without regard to anyrelief to which the chargeable person isor may become entitled for the preced-35ing year or the pre-preceding year, asthe case may be, under section 481 orPart 16.

(5) Where, for a tax year, a chargeable personis assessed to income tax in accordance with40section 1017 or 1031C, and that person was not soassessed for the preceding tax year or for the pre-preceding tax year or for both of those yearseither—

(a) because the person’s spouse or civil45partner was so assessed for either orboth of those years, or

(b) because the person and the person’sspouse or civil partner were assessed toincome tax in accordance with section501016 or 1023, or section 1031B or1031H, as the case may be, for eitheror both of those years,

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subparagraphs (ii) and (iii) of subsection (3)(b)and subsection (4)(a) apply as if the person andthe person’s spouse or civil partner had elected inaccordance with section 1018, 1019 or 1031D, asthe case may be, for the person to be assessed to 5income tax in accordance with section 1017 or1031C for any of those years for which the personor the person’s spouse or civil partner wereentitled to so elect or, in the case of married per-sons, would have been so entitled if section 1019 10had applied.

(6) (a) Where, in relation to a tax year, the pro-fits or gains of a corresponding periodrelating to the preceding tax year aretaken to be the profits or gains of that 15preceding tax year in accordance withsection 65(3), then, notwithstandingthat the assessment for that precedingtax year has not been amended, anyincome tax payable for that preceding 20tax year which exceeds the income taxdue and payable for that year withoutregard to the operation of section 65(3)is due and payable on or before thespecified return date for the tax year. 25

(b) An amount of income tax to whichparagraph (a) applies shall not betaken into account for the purposes ofsubsection (3).

(c) Notwithstanding section 959AU, where, 30in relation to a tax year, any additionaltax for the preceding tax year is dueand payable by virtue of an amend-ment of the assessment for that yearmade in accordance with section 65(3), 35then, such additional tax as specified inthe amendment to the assessment forthat year shall be deemed to have beendue and payable on or before thespecified return date for the tax year. 40

Payment ofpreliminary taxby direct debit.

959AP.—(1) This section applies to a charge-able person who—

(a) authorises the Collector-General to col-lect preliminary tax for income tax pur-poses by the debiting of a bank 45account of that person in accordancewith subsection (2), and

(b) complies with such conditions as theCollector-General may reasonablyimpose to ensure that an amount of 50preliminary tax payable by a charge-able person for a tax year will be paidby the chargeable person in accord-ance with this section.

(2) Preliminary tax appropriate to a tax year 55for income tax purposes is due and payable in the

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case of a chargeable person to whom this subsec-tion applies—

(a) as respects the first tax year for whichthe Collector-General is authorised inaccordance with subsection (1) to debit5that person’s bank account, by way ofa minimum of 3 equal monthly instal-ments in that year, and

(b) as respects any subsequent tax year inwhich the Collector-General is so auth-10orised, by way of a minimum of 8 equalmonthly instalments in that year,

and the Collector-General shall debit the bankaccount of that person with such instalments onday 9 of each month for which the Collector-15General is so authorised.

(3) The Collector-General may, in any part-icular case, in order to facilitate the payment ofpreliminary tax in accordance with this section,agree at the Collector-General’s discretion to vary20the number of equal monthly instalments to becollected in a year or agree at the Collector-General’s discretion to an increase or decrease inthe amount to be collected in any subsequentinstalment to be made in that year.25

(4) A chargeable person shall not be treated ashaving paid an amount of preliminary tax inaccordance with this subsection unless that personpays in the tax year the monthly instalments duein accordance with subsection (2) or (3), as30appropriate.

(5) For the purposes of section 959AO, achargeable person who pays an amount of prelimi-nary tax appropriate to a tax year in accordancewith this section shall be deemed to have paid that35amount of preliminary tax on 31 October in thetax year.

Date forpayment ofcapital gainstax.

959AQ.—(1) Capital gains tax payable by achargeable person for a tax year is, where anassessment has not been made on or by the40chargeable person for the tax year, due andpayable—

(a) as respects tax payable for the initialperiod, on or before 15 December inthe tax year, and45

(b) as respects tax payable for the laterperiod, on or before 31 January in thenext following tax year.

(2) Where the capital gains tax payable by achargeable person for a tax year is due and pay-50able in accordance with subsection (1), then thetax specified in any subsequent assessment made

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on or by the chargeable person for that year shallbe deemed to have been due and payable—

(a) on or before 15 December in the taxyear, as respects tax payable for theinitial period, and 5

(b) on or before 31 January in the next fol-lowing tax year, as respects tax payablefor the later period.

Date forpayment ofcorporationtax: companiesother thanwith relevantaccountingperiods.

959AR.—(1) Preliminary tax appropriate to anaccounting period, other than a relevant account- 10ing period, of a company is due and payable—

(a) subject to paragraph (b), not later thanthe day (in this paragraph referred toas the ‘first-mentioned day’) which is31 days before the day on which the 15accounting period ends, but where thefirst-mentioned day is later than day 21of the month in which it occurs, thepreliminary tax shall be due and pay-able not later than— 20

(i) day 21 of the month in which thatfirst-mentioned day occurs, or

(ii) where payment of the preliminarytax is made by day 23 of themonth in which that first-men- 25tioned day occurs by such elec-tronic means as are required bythe Revenue Commissioners, day23 of the month in which that first-mentioned day occurs, 30

(b) in a case where the accounting periodis less than one month and one day inlength, not later than the last day ofthe accounting period, but where thatday is later than day 21 of the month 35in which it occurs, the preliminary taxis due and payable not later than—

(i) day 21 of the month in which thatlast day occurs, or

(ii) where payment of the preliminary 40tax is made by day 23 of themonth in which that last dayoccurs by such electronic means asare required by the RevenueCommissioners, day 23 of the 45month in which that last dayoccurs.

(2) (a) Subject to subsections (3) and (4), taxpayable by a chargeable person for anaccounting period, other than a rel- 50evant accounting period, of a companyshall be due and payable on or before

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the specified return date for theaccounting period.

(b) Where the tax payable by a chargeableperson for an accounting period, otherthan a relevant accounting period, of a5company is due and payable in accord-ance with paragraph (a), then the taxspecified in any subsequent assessmentmade on or by the chargeable personfor that accounting period shall be10deemed to have been due and payableon or before the specified return datefor the accounting period.

(3) Subject to subsection (4), the tax payable bya chargeable person for an accounting period,15other than a relevant accounting period, of a com-pany shall be deemed to have been due and pay-able on the due date for the payment of an amountof preliminary tax for the accounting periodwhere—20

(a) the chargeable person has defaulted inthe payment of preliminary tax for theaccounting period,

(b) in the case of a company that is a smallcompany in relation to the accounting25period, the preliminary tax paid by thechargeable person for the accountingperiod is less than, or less than thelower of—

(i) 90 per cent of the tax payable by30the chargeable person for theaccounting period, and

(ii) the sum of the corresponding cor-poration tax for the precedingaccounting period and the corre-35sponding income tax for the pre-ceding accounting period,

(c) in the case of a company that is not asmall company in relation to theaccounting period, the preliminary tax40paid by the chargeable person for theaccounting period is less than 90 percent of the tax payable by the charge-able person for the accounting period,or45

(d) the preliminary tax payable by thechargeable person for the accountingperiod was not paid by the date onwhich it was due and payable.

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(4) Where as respects an accounting period,other than a relevant accounting period, of acompany—

(a) the preliminary tax paid by the charge-able person for the accounting period 5in accordance with subsection (1) isless than 90 per cent of the tax payableby the chargeable person for theaccounting period,

(b) the preliminary tax so paid by the 10chargeable person for the accountingperiod is not less than 90 per cent ofthe amount which would be payable bythe chargeable person for the account-ing period if no amount were included 15in the company’s profits for theaccounting period—

(i) in respect of chargeable gains onthe disposal of assets in the partof the accounting period which is 20after the date by which prelimi-nary tax for the accounting periodis payable in accordance with sub-section (1), or

(ii) in the case of a relevant company, 25in respect of profits or gains orlosses accruing, and not realised,in the accounting period on finan-cial assets or financial liabilities asare attributable to changes in 30value of those assets or liabilitiesin the part of the accountingperiod which is after the end ofthe month immediately precedingthe month in which preliminary 35tax for the accounting period ispayable in accordance with sub-section (1),

and

(c) the chargeable person makes a further 40payment of preliminary tax for theaccounting period within one monthafter the end of the accounting periodand the aggregate of that payment andthe preliminary tax paid by the charge- 45able person for the accounting periodin accordance with subsection (1) is notless than 90 per cent of the tax payableby the chargeable person for theaccounting period, 50

then the further payment of preliminary tax paidby the chargeable person for the accountingperiod shall be treated for the purposes of subsec-tion (3) as having been paid by the date by whichit is due and payable. 55

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Date forpayment ofcorporationtax: companieswith relevantaccountingperiods.

959AS.—(1) Preliminary tax appropriate to arelevant accounting period is due and payable in 2instalments, the first of which is referred to in thissection as the ‘initial instalment’ and the second ofwhich is referred to in this section as the ‘final5instalment’.

(2) (a) The initial instalment is due and payablewithin a period of 6 months from thestart of the accounting period, butwhere the last day of that period of 610months is later than day 21 of themonth in which it occurs, the initialinstalment is due and payable notlater than—

(i) day 21 of the month in which that15last day occurs, or

(ii) where payment of the initial instal-ment is made by day 23 of themonth in which that last dayoccurs by such electronic means as20are required by the RevenueCommissioners, day 23 of themonth in which that last dayoccurs.

(b) The final instalment is due and payable25not later than the day (in this para-graph referred to as the ‘first-men-tioned day’) which is 31 days beforethe day on which the accounting periodends, but where the first-mentioned30day is later than day 21 of the monthin which it occurs, the final instalmentis due and payable not later than—

(i) day 21 of the month in which thatfirst-mentioned day occurs, or35

(ii) where payment of the final instal-ment is made by day 23 of themonth in which that first-men-tioned day occurs by such elec-tronic means as are required by40the Revenue Commissioners, day23 of the month in which that first-mentioned day occurs.

(3) (a) Subject to subsections (4) to (7), taxpayable by a chargeable person for a45relevant accounting period is due andpayable on or before the specifiedreturn date for the accounting period.

(b) Where the tax payable by a chargeableperson for a relevant accounting50period is due and payable in accord-ance with paragraph (a), then the taxspecified in any subsequent assessmentmade on or by the chargeable personfor that accounting period shall be55

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deemed to have been due and payableon or before the specified return datefor the accounting period.

(4) Subject to subsections (6) and (7) andsection 959AT, the tax payable by a chargeable 5person for a relevant accounting period shall bedeemed to have been due and payable in accord-ance with subsection (5) where—

(a) the chargeable person has defaulted inthe payment of the initial instalment or 10final instalment of preliminary tax forthe accounting period,

(b) the initial instalment of preliminary taxpaid by the chargeable person for theaccounting period is less than, or less 15than the lower of—

(i) 45 per cent of the tax payable bythe chargeable person for theaccounting period, and

(ii) 50 per cent of the sum of the corre- 20sponding corporation tax for thepreceding accounting period andthe corresponding income tax forthe preceding accounting period,

(c) in a case where the accounting period 25commenced on the company comingwithin the charge to corporation tax,the initial instalment of preliminary taxpaid by the chargeable person for theaccounting period is less than 45 per 30cent of the tax payable by the charge-able person for the accounting period,

(d) the aggregate of the initial instalmentand the final instalment of preliminarytax paid by the chargeable person for 35the accounting period is less than 90per cent of the tax payable by thechargeable person for the accountingperiod, or

(e) the initial instalment or the final instal- 40ment of preliminary tax payable by thechargeable person for the accountingperiod was not paid by the date onwhich it was due and payable.

(5) (a) Tax due and payable in accordance with 45this subsection by a chargeable personfor a relevant accounting period is dueand payable in 2 instalments, the firstof which is referred to in this subsec-tion as the ‘initial relevant instalment’ 50and the second of which is referred toin this subsection as the ‘final relevantinstalment’.

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(b) The amount of the initial relevantinstalment is 45 per cent of the tax pay-able by the chargeable person for theaccounting period and the initial rel-evant instalment is due and payable5not later than the day on which theinitial instalment of preliminary tax isdue and payable in accordance withsubsection (2).

(c) The amount of the final relevant instal-10ment is an amount equal to the excessof the tax payable by the chargeableperson for the accounting period overthe amount of the initial relevantinstalment and the final relevant instal-15ment is due and payable not later thanthe day on which the final instalmentof preliminary tax is due and payablein accordance with subsection (2).

(6) Where as respects a relevant accounting20period—

(a) the initial instalment of preliminary taxpaid by the chargeable person for theaccounting period in accordance withsubsection (2) is less than 45 per cent25of the tax payable by the chargeableperson for the accounting period,

(b) the initial instalment of preliminary taxso paid by the chargeable person forthe accounting period is not less than3045 per cent of the amount which wouldbe payable by the chargeable personfor the accounting period if no amountwere included in the company’s profitsfor the accounting period—35

(i) in respect of chargeable gains onthe disposal of assets in the partof the accounting period which isafter the date by which the initialinstalment of preliminary tax for40the accounting period is payablein accordance with subsection (2),or

(ii) in the case of a relevant company,in respect of profits or gains or45losses accruing, and not realised,in the accounting period on finan-cial assets or financial liabilities asare attributable to changes invalue of those assets or liabilities50in the part of the accountingperiod which is after the end ofthe month immediately precedingthe month in which the initialinstalment of preliminary tax for55the accounting period is payablein accordance with subsection (2),

299

(c) the aggregate of the initial instalmentand the final instalment of preliminarytax paid by the chargeable person forthe accounting period in accordancewith subsection (2) is not less than 90 5per cent of the amount of tax whichwould be payable by the chargeableperson for the accounting period ifcomputed in accordance with subsec-tion (7)(b), 10

then the initial instalment of preliminary tax paidby the chargeable person for the accountingperiod shall be treated for the purposes of subsec-tion (4) as having been paid by the date on whichit is due and payable. 15

(7) Where as respects a relevant accountingperiod—

(a) the aggregate of the initial instalmentand the final instalment of preliminarytax paid by the chargeable person for 20the accounting period in accordancewith subsection (2) is less than 90 percent of the tax payable by the charge-able person for the accounting period,

(b) the aggregate of the initial instalment 25and the final instalment of preliminarytax so paid by the chargeable personfor the accounting period is not lessthan 90 per cent of the amount whichwould be payable by the chargeable 30person for the accounting period if noamount were included in the com-pany’s profits for the accountingperiod—

(i) in respect of chargeable gains on 35the disposal of assets in the partof the accounting period which isafter the date by which the finalinstalment of preliminary tax forthe accounting period is payable 40in accordance with subsection (2),or

(ii) in the case of a relevant company,in respect of profits or gains orlosses accruing, and not realised, 45in the accounting period on finan-cial assets or financial liabilities asare attributable to changes invalue of those assets or liabilitiesin the part of the accounting 50period which is after the end ofthe month immediately precedingthe month in which the finalinstalment of preliminary tax forthe accounting period is payable 55in accordance with subsection (2),

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(c) the chargeable person makes a furtherpayment of preliminary tax for theaccounting period within one monthafter the end of the accounting periodand the aggregate of that payment and5the initial instalment and final instal-ment of preliminary tax paid by thechargeable person for the accountingperiod in accordance with subsection(2) is not less than 90 per cent of the10tax payable by the chargeable personfor the accounting period,

then the final instalment of preliminary tax paidby the chargeable person for the accountingperiod shall be treated for the purposes of subsec-15tion (4) as having been paid by the date on whichit is due and payable.

Date forpayment ofcorporationtax: groups.

959AT.—(1) In this section—

‘initial balance’ means the amount represented bythe formula—20

A – B

where—

A is the amount of the initial instalment ofpreliminary tax paid by the surren-dering company for the relevant period25in accordance with subsection (2) ofsection 959AS, and

B is—

(a) where the relevant period started on thesurrendering company coming within30the charge to corporation tax—

(i) 45 per cent of the tax payable bythe surrendering company for therelevant period, or

(ii) where subsection (4) of section35959AN applies in relation to thatperiod, a nil amount,

or

(b) in any other case, the lower of—

(i) 45 per cent of the tax payable by40the surrendering company for therelevant period, or

(ii) 50 per cent of the sum of the corre-sponding corporation tax for thepreceding accounting period and45the corresponding income tax forthe preceding accounting period,which is payable by the surren-dering company;

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‘final balance’ means the amount represented bythe formula—

C – D

where—

C is the amount of preliminary tax paid by 5the surrendering company for the rel-evant period in accordance withsection 959AR(1) or section 959AS(2),as the case may be, and

D is 90 per cent of the tax payable by the 10surrendering company for the relevantperiod, or, where subsection (4) ofsection 959AN applies in relation tothat period, a nil amount;

‘relevant initial balance’ means that part of an 15initial balance that is specified in a notice given inaccordance with subsection (3);

‘relevant final balance’ means that part of a finalbalance that is specified in a notice given inaccordance with subsection (3). 20

(2) This section applies where—

(a) a company (in this section referred to asthe ‘surrendering company’) which is amember of a group pays—

(i) an initial instalment of preliminary 25tax for an accounting period (inthis subsection referred to as the‘relevant period’) in accordancewith subsection (2) of section959AS, being an amount which 30exceeds, or exceeds the lower of—

(I) 45 per cent of the tax payableby that surrendering companyfor the relevant period, and

(II) 50 per cent of the sum of the 35corresponding corporationtax for the preceding account-ing period and the corre-sponding income tax for thepreceding accounting period, 40that is payable by the surren-dering company,

(ii) an initial instalment of preliminarytax for a relevant period whichstarted on the surrendering com- 45pany coming within the charge tocorporation tax, being an amountwhich exceeds 45 per cent of thetax payable by that company forthe relevant period, 50

302

(iii) an amount of preliminary tax for arelevant period in accordance withsection 959AR(1) or section959AS(2), as the case may be,being an amount which exceeds 905per cent of the tax payable by thesurrendering company for the rel-evant period, or

(iv) any amount of preliminary tax for arelevant period in respect of which10subsection (4) of section 959ANapplies,

(b) another company (in this sectionreferred to as the ‘claimant company’)which is a member of the group pays—15

(i) an initial instalment of preliminarytax for an accounting period inaccordance with subsection (2) ofsection 959AS, being an amountwhich is less than, or less than the20lower of—

(I) 45 per cent of the tax payableby the claimant company forthe accounting period, and

(II) 50 per cent of the sum of the25corresponding corporationtax for the preceding account-ing period and the corre-sponding income tax for thepreceding accounting period,30which is payable by the claim-ant company,

(ii) an initial instalment of preliminarytax for an accounting period whichstarted on the claimant company35coming within the charge to cor-poration tax, being an amountwhich is less than 45 per cent ofthe tax payable by that companyfor the relevant period, or40

(iii) an amount of preliminary tax for anaccounting period in accordancewith subsection (2) of section959AS, being an amount which isless than 90 per cent of the tax45payable by the claimant companyfor the accounting period,

or

(c) the accounting period in paragraph (b)coincides with the relevant period, and50

(d) the claimant company is not a smallcompany in relation to the relevantperiod.

303

(3) Where this section applies, the 2 companiesmay, at any time on or before the specified returndate for the accounting period of the surrenderingcompany, jointly give notice to the Collector-General— 5

(a) that subsection (4)(a) is to have effectin relation to the relevant initialbalance, or

(b) that subsection (4)(b) is to have effect inrelation to the relevant final balance. 10

(4) (a) Where this subsection has effect inrelation to any relevant initialbalance—

(i) an additional amount of prelimi-nary tax equal to the relevant 15initial balance shall be deemed forthe purposes of subsection (4)(b)of section 959AS to have beenpaid by the claimant company onthe due date for the payment of 20the initial instalment of prelimi-nary tax of that company for therelevant period if 100 per cent ofthe tax payable by the claimantcompany for the relevant period, 25disregarding this subparagraph, ispaid on or before the specifiedreturn date for the relevantperiod, and

(ii) the surrendering company shall for 30the purposes of this section betreated as having surrendered therelevant initial balance to theclaimant company and that rel-evant initial balance shall not be 35available for use by any othercompany under this section.

(b) Where this subsection has effect inrelation to any relevant final balance—

(i) an additional amount of prelimi- 40nary tax equal to the relevant finalbalance shall be deemed for thepurposes of subsection (4)(d) ofsection 959AS to have been paidby the claimant company on the 45due date for the payment of thefinal instalment of preliminary taxof that company for the relevantperiod if 100 per cent of the taxpayable by the claimant company 50for the relevant period, dis-regarding this subparagraph, ispaid on or before the specifiedreturn date for the relevantperiod, and 55

304

(ii) the surrendering company shall forthe purposes of this section betreated as having surrendered therelevant final balance to the claim-ant company and that relevant5final balance shall not be availablefor use by any other companyunder this section.

(5) A payment for a relevant initial balance orfor a relevant final balance—10

(a) shall not be taken into account in com-puting profits or losses of either com-pany for corporation tax purposes, and

(b) shall not be regarded as a distributionor a charge on income for any of the15purposes of the Corporation Tax Acts,

and, in this subsection, ‘payment for a relevantinitial balance or for a relevant final balance’means a payment made by the claimant companyto the surrendering company in pursuance of an20agreement between them as respects an amountsurrendered in accordance with this section, beinga payment not exceeding that amount.

(6) (a) This section does not affect the liabilityto pay corporation tax of any company25to which the section relates.

(b) Where this section applies, the amounton which, but for this section, theclaimant company is liable to payinterest in accordance with section301080 shall be reduced by—

(i) any relevant initial balance deemedto have been paid by that com-pany in accordance with subsec-tion (4)(a)(i), or35

(ii) any relevant final balance deemedto have been paid by that com-pany in accordance with subsec-tion (4)(b)(i).

(7) For the purposes of this section, 2 compan-40ies are members of the same group if and only ifthey would be such members for the purposes ofsection 411.

Date forpayment oftax: amendedassessments.

959AU.—(1) Subject to subsection (2) andsection 959AV, any additional tax due by reason45of the amendment of an assessment for a charge-able period shall be deemed to be due and payableon the same day as the tax due under the assess-ment, before its amendment, was due and payable.

(2) Where—50

305

(a) the assessment was made after thechargeable person had delivered areturn containing a full and true dis-closure of all material facts necessaryfor the making of the assessment, or 5

(b) the assessment had previously beenamended following the delivery of thereturn containing such disclosure,

any additional tax due by reason of the amend-ment of the assessment shall be deemed to have 10been due and payable not later than one monthfrom the date of the amendment.

Date forpayment oftax:determinationof an appeal.

959AV.—(1) Where, on the determination ofan appeal against an assessment made on a charge-able person for a chargeable period, the amount 15of tax payable by the person for the period is inexcess of the amount of the tax which the charge-able person had paid before the making of theappeal, the excess shall be deemed to be due andpayable on the same date as the tax charged by 20the assessment is due and payable.

(2) Notwithstanding subsection (1), where—

(a) the tax which the chargeable person hadpaid before the making of the appealis not less than 90 per cent of the tax 25found to be payable on the determi-nation of the appeal, and

(b) the tax charged by the assessment wasdue and payable in accordance withsection 959AO(2), section 959AQ, 30section 958AR(3) or section 958AS(3),as the case may be,

the excess referred to in subsection (1) shall bedeemed to be due and payable not later than onemonth from the date of the determination of the 35appeal.”.

PART 2

Amendment of the Taxes Consolidation Act 1997consequential on the deletion of Parts 39 and 41 and the

insertion of Part 41A 40

The Taxes Consolidation Act 1997 is amended—

(a) in section 128B(12) by inserting “and” after “yearof assessment,” in paragraph (a), and by delet-ing paragraph (b),

(b) in section 380(3) by substituting the following for 45paragraph (a):

“(a) Subject to Chapter 5 of Part 41A,assessments may, as necessary, bemade or amended at any time for the

306

purpose of applying subsections (2)and (3) of section 378, section 379 andsubsection (2).”,

(c) in section 380P(3) by substituting the followingfor paragraph (a):5

“(a) Subject to Chapter 5 of Part 41A,assessments may, as necessary, bemade or amended at any time for thepurpose of applying subsections (2)and (3) of section 380N, section 380O10and subsection (2).”,

(d) in section 811A(1A) by substituting “nothing insection 959Z, 959AA or 959AB shall be con-strued” for “sections 955(2)(a) and 956(1)(c), asconstrued together with section 950(2), shall not15be construed”,

(e) in section 1069 by substituting the following forsubsection (1):

“(1) In this section ‘assessment’ includes anamended assessment.”,20

(f) in section 1082 by substituting the following forsubsection (1):

“(1) In this section ‘neglect’ has the samemeaning as in section 959AD.”,

and25

(g) in each provision referred to in column (2) of theTable to this Schedule, the words or referenceset out in column (3) of the Table are to bedeleted and the words or reference opposite theentry in column (3), as set out in column (4) of30the Table, are to be inserted.

TABLE

Item Provision Words to be deleted Words to be insertedNo.

(1)35 (2) (3) (4)

1 section section 951 Chapter 3 of Part 41A21B(6)

2 section Part 41 Part 41A29A(5)

340 section 66(3) section 951 Chapter 3 of Part 41A

4 section an additional assessment an assessment made on or67(1)(a)(i) may be made on such by such person may be

person amended

5 section an additional assessment an assessment on or by such67(1)(a)(ii)45 may be made on such person may be made or

person amended

6 section 68(2) section 950 section 959A

307


(1) (2) (3) (4)

7 section section 950 section 959A80A(1), inparagraph (b)of thedefinition of 5“specifiedperiod”

8 section section 951 Chapter 3 of Part 41A80A(3)

9 10section section 951 Chapter 3 of Part 41A89(4)(c)

10 section 95(3) an additional assessment an assessment made on orshall (notwithstanding by such person shallanything in section (notwithstanding anything in924(2)) be made 15Chapter 5 of Part 41A) beaccordingly amended accordingly

11 section by means of an additional by means of an amended100(4) assessment or otherwise assessment or otherwise

12 section by additional assessment by amended assessment or101(b) 20or otherwise otherwise

13 section by means of additional by means of amended102(4) assessment or otherwise assessment or otherwise

14 section by means of additional by means of amended103(7) assessment or otherwise assessment or otherwise

15 25section section 951 Chapter 3 of Part 41A110(3)(b)(ii)

16 section section 950 section 959A110(6)(b)

17 section the purposes of Part 41 the purposes of Part 41A128(2A) 30

18 section section 951 by reason of a Chapter 3 of Part 41A by128(2A)(b) notice given under reason of a notice given

subsection (6) of that under section 959Nsection

19 35section sections 952 and 958 Chapter 7 of Part 41A128B(11)

20 section section 952(2) section 959AN(2)128B(12)(a)

21 section section 958(4) section 959AO(3)128B(12)(c) 40

22 section the purposes of Part 41 the purposes of Part 41A128C(13)

23 section section 951 by reason of a Chapter 3 of Part 41A by128C(13) notice given under reason of a notice given

subsection (6) of that 45under section 959Nsection

24 section an additional assessment an amended assessment or128D(5) or otherwise otherwise

25 section section 951 Chapter 3 of Part 41A175(1A)(b)(i) 50

26 section Part 41 Part 41A182(1)

308


(1) (2) (3) (4)

27 section section 950 section 959A189A(1), inthe definitionof “specifiedreturn date5for thechargeableperiod”

28 section section 950 section 959A216A(3)(a)10

29 section section 950 section 959A216C(3)(a)

30 section or additional assessments or amend such assessments222(4)(a)

3115 section within the meaning of within the meaning of Part232(3) section 950, is required to 41A, is required to deliver

deliver under section 951 under Chapter 3 of that Part

32 section Part 41 Part 41A232(3)(b)

3320 section section 950 Part 41A232(3)(b)

34 section section 951(6) section 959N232(3)(c)

35 section section 958 Chapter 7 of Part 41A239(5)25

36 section Section 951 Chapter 3 of Part 41A249(2)(ab)(iii)

37 section and there shall be made and assessments shall, as250(4) all such assessments or necessary, be made or

additional assessments as30 amendedare necessary

38 section section 950 section 959A267M(2)(b)

39 section any necessary additional any assessments may, as271(6)35 assessments may be made necessary, be amended

40 section section 951 Chapter 3 of Part 41A291A(4)(b)(i)

41 section all such additional all such assessments or299(2) assessments and amendments of assessments

adjustments of40assessments

42 section section 950 section 959A299(3)(b)

43 section all such additional all such assessments and380W(1)45 assessments and amendments of assessments

adjustments ofassessments

44 section 394 by additional assessment by amended assessment

45 section section 951 Chapter 3 of Part 41A396C(3)(c)50

46 section section 951 Chapter 3 of Part 41A404(4)(b)

47 section section 919(5)(b)(iii) Chapter 5 of Part 41A429(4)

4855 section section 951 Chapter 3 of Part 41A434(3A)(c)

309


(1) (2) (3) (4)

49 section section 950 Part 41A458(1B)(b)

50 section section 950 Part 41A459(5)(b)

51 5section and there shall be made and assessments shall, as482(5)(d)(ii) all such assessments or necessary, be made or

additional assessments as amendedare necessary

52 section and there shall be made and assessments shall, as482(6)(d)(II) 10all such assessments or necessary, be made or

additional assessments as amendedare necessary

53 section Part 41 Part 41A485FB(1)

54 15section Part 41 Part 41A485FB(2)

55 section under section 951, under Chapter 3 of Part485FB(3) prepare 41A, prepare

56 section section 951 on or before Chapter 3 of Part 41A on or485FB(3) 20before

57 section section 951 Chapter 3 of Part 41A486C(11)

58 section section 924(2)(c) section 959AD502(6)

59 25section section 951 Chapter 3 of Part 41A510(8)

60 section sections 955, 956 and Chapter 5 of Part 41A and530N(3)(b) 1048 section 1048

61 section section 956 section 959Z531AI(1) 30

62 section section 956 section 959Z531AI(2)

63 section Part 41 Part 41A531AS(1)

64 35section Part 41 Part 41A531AS(2)

65 section Part 41 Part 41A531AS(5)

66 section section 958 Chapter 7 of Part 41A531AS(5) 40

67 section Part 41 Part 41A531AT(1)

68 section Chapter 1 and 2 of Part Part 41A531AAA(b) 39

69 45section by way of assessment or by way of assessment or538(2A)(a) additional assessment amended assessment


71 section section 950 section 959A579D(1) 50

72 section section 951 Chapter 3 of Part 41A579D(1)

310


(1) (2) (3) (4)

73 section section 951 Chapter 3 of Part 41A591(10)

74 section by means of assessment by means of assessment or598(6)(b) or additional assessment amended assessment

755 section section 950 section 959A629(1), in thedefinition of“specifiedperiod”

7610 section section 951 Chapter 3 of Part 41A629(1), in thedefinition of“specifiedperiod”


78 section any necessary assessments any necessary assessments653(2) or additional assessments, may, as appropriate, be

as may be appropriate, made or amendedmay be made20

79 section section 950 section 959A656(1)

80 section section 951 Chapter 3 of Part 41A657(7)

8125 section 665, section 950 section 959Ain thedefinition of“specifiedreturn datefor the30chargeableperiod”

82 section and all such additional and assessments shall be678(4) assessments and made or amended

adjustments of35assessments shall be made

83 section section 951 Chapter 3 of Part 41A681(6)(d)

84 section section 951 Chapter 3 of Part 41A696E(2)40

85 section Subsections (9) and (10) Subsection (5) of section696E(4) of section 951 959I and subsections (2) and

(3) of section 959O

86 section delivered under that delivered under Chapter 3 of696E(4)45 section Part 41A

87 section and all such assessments and assessments shall, as700(3) and additional necessary, be made or

assessments shall be made amendedas may be necessary

8850 section section 950 section 959A730H(1), inthe definitionof “specifiedreturn datefor the55chargeableperiod”

89 section 730I section 950 or 1084 Part 41A or section 1084

90 section 730I sections 951 and 1084 Chapter 3 of Part 41A andsection 108460

311


(1) (2) (3) (4)

91 section sections 951 and 1084 Chapter 3 of Part 41A and739E(2A) section 1084(b)(iii)

92 section section 950 section 959A747B(1), in 5the definitionof “specifiedreturn datefor thechargeable 10period”

93 section 747C section 950 or 1084 Part 41A or section 1084

94 section 747C sections 951 and 1084 Chapter 3 of Part 41A andsection 1084

95 15section section 950 section 959A749(2A)(b),in thedefinition of“specifiedreturn date 20for thechargeableperiod”

96 section section 951 Chapter 3 of Part 41A749(2B)(b) 25

97 section Part 41 Part 41A751B(5)

98 section Part 41 Part 41A751B(6)(a)

99 30section paragraph (b) of the paragraph (b)(i) of the766A(4B)(b)(i) definition of “specified definition of “specified

return date for the return date for thechargeable period” as chargeable period” asdefined in section 950(1) defined in section 959A

100 35section Part 41 Part 41A774(8)


102 section section 950 section 959A784E(8)(a) 40


104 section any additional any assessment, amendment787(13) assessment, alteration of of an assessment

an assessment 45

105 section Part 41 Part 41A787C(3)

106 section any additional any assessment, amendment787C(6) assessment, alteration of of an assessment

an assessment 50

107 section an assessment or an assessment may be made804(1) additional assessment on or by that person for that

may be made on that year or such an assessmentperson for that year may be amended

108 55section an assessment or an assessment may be made804(3)(a) additional assessment

may be made

109 section an assessment may be an assessment may be804(3)(b) adjusted amended

312


(1) (2) (3) (4)

110 section section 955(4) section 959P811A(6)(b)(iv)

111 section section 950 section 959A835G(5)(b)

1125 section section 951 Chapter 3 of Part 41A847A(8)

113 section Part 41 Part 41A847A(9)(a)

114 section section 951 Chapter 3 of Part 41A848A(5)10



11715 section section 950 Part 41A864A(1)(c)(ii)

118 section section 951(1) Chapter 3 of Part 41A886(4)(a)(ii)

119 section section 956 section 959Z886A(5)20

120 section section 950 or 1084 Part 41A or section 1084895(6)

121 section sections 951 and 1084 Chapter 3 of Part 41A and895(6) section 1084

12225 section section 950 or 1084 Part 41A or section 1084896(5)

123 section sections 951 and 1084 Chapter 3 of Part 41A and896(5) section 1084

124 section or other officer or other Revenue officer911(1)30 mentioned in section mentioned in Part 41A

931(1)

125 section section 931(1) or other Revenue officer945(1) mentioned in Part 41A

126 section section 957 Chapter 6 of Part 41A949(1)35

127 section made under Part 41 made on or by a person who960(1) is a chargeable person under

Part 41A

128 section made under Part 41 made on or by a person who960(2)40 is a chargeable person under

Part 41A

129 section section 928 section 959G960E(1)

130 section section 928 section 959G990A(b)45

131 section and any such additional and any such assessments,1010(6)(b) assessments amendments of assessments

132 section and such additional and any such assessments,1010(7)(c) assessments amendments of assessments

13350 section 1043 Without prejudice to the Without prejudice to Partgenerality of section 41A931(2)

313


(1) (2) (3) (4)

134 section an assessment or an an assessment or an1048(1) additional first amended assessment, as the

assessment, as the case case may be, may be mademay be, may be made for for any year of assessmentany year of assessment 5for which an assessment orfor which an assessment an amended assessmentor an additional first could have been madeassessment could havebeen made

135 10section as in section 950(1) as it has for the purposes of1080(1), in Part 41Athe definitionof“chargeableperson” 15

136 section 1083 Without prejudice to Without prejudice to Partsections 931(2) 41A

137 section Part 41 Part 41A1084(1)(a), inthe definition 20of“chargeableperson”

138 section section 951 Chapter 3 of Part 41A1084(1)(a), in 25the definitionof “return ofincome”

139 section section 950 section 959A1084(1)(a), in 30the definitionof “specifiedreturn datefor thechargeable 35period”

140 section preliminary tax (within preliminary tax (within the1084(5) the meaning of Part 41) meaning of Part 41A) paid

paid under section 952 under Chapter 7 of that Part

141 40section section 951 Chapter 3 of Part 41A1085(1)(a), inthe definitionof “return ofincome”

142 45section section 950 section 959A1085(1)(a), inthe definitionof “specifiedreturn datefor the 50chargeableperiod”

143 section section 928 section 959G1104(3)

144 55Schedule 12, section 951 Chapter 3 of Part 41Aparagraph3(5)

145 Schedule section 951 Chapter 3 of Part 41A12A,paragraph 6A 60

314


(1) (2) (3) (4)

146 Schedule section 951 Chapter 3 of Part 41A12C,paragraph20A

1475 Schedule Part 41 Part 41A18B,paragraph7(4)

148 Schedule section 951 Chapter 3 of Part 41A18B,10paragraph15(3)

149 Schedule 24, any such additional that assessment may beparagraph 11 assessments may be made amended to ensure that the

as are necessary to ensure15 total amount of the incomethat the total amount of is assessed and the properthe income is assessed credit, if any, is given inand the proper credit, if respect of that income, andany, is given in respect of where the income isthat income, and where20 entrusted to any person inthe income is entrusted to the State for payment, anany person in the State assessment to income taxfor payment, any such may be made or amendedadditional assessment to on the recipient of theincome tax may be made25 income under Case IV ofon the recipient of the Schedule D.income under Case IV ofSchedule D.

150 Schedule 29, Section 951(1) and (2) Chapter 3 of Part 41Ain column 130

315


Miscellaneous Amendments: Provisions Relating toAdministration

1. The Taxes Consolidation Act 1997 is amended—

(a) in section 2(1) by inserting the following after the defini- 5tion of “Appeal Commissioner”:

“ ‘appropriate inspector’ in relation to a person, means—

(a) the inspector or other officer of the RevenueCommissioners (in this definition referred to as‘officer’) who has last given notice in writing to 10the person that he or she is the inspector orofficer to whom the person is required todeliver an account, declaration, list, particular,return, statement or other item,

(b) in the absence of an inspector or officer referred 15to in paragraph (a), the inspector or officer towhom it is customary for the person to deliversuch an account, declaration, list, particular,return, statement or other item,

(c) in the absence of an inspector or officer referred 20to in paragraph (a) or (b), the inspector orofficer in charge of the Revenue district whichdeals with the tax affairs of persons located inthe city or county (or the part of the city orcounty) in which the person is located, or 25

(d) in any case where the person is directed todeliver an account, declaration, list, particular,return, statement or other item to the inspectorof returns, the inspector of returns;”,

(b) in section 2(1) by inserting the following for the definition 30of “inspector”:

“ ‘inspector’ means—

(a) an inspector of taxes appointed under section852,

(b) an officer of the Revenue Commissioners who 35as part of his or her duties in that capacity car-ries out duties similar to those of an inspectorof taxes appointed under section 852, including(but not limited to) the making and amendingof assessments, the making of determinations 40and dealing with notices of appeal againstassessments and determinations, or

(c) an officer of the Revenue Commissioners whois employed or acts in the execution of the TaxActs or the Capital Gains Tax Acts; 45

316

‘inspector of returns’ means the inspector nominatedunder subsection (1A) by the Revenue Commissioners tobe the inspector of returns;”,

(c) in section 2 by inserting the following subsection after sub-section (1):5

“(1A) (a) The Revenue Commissioners may nominatean inspector to be the inspector of returns.

(b) The inspector of returns shall take delivery ofany account, declaration, list, particular,return, statement or other item which, under10the Tax Acts or the Capital Gains Tax Acts, isrequired to be delivered to him or her.

(c) Where an inspector is nominated under para-graph (a), the name of the inspector so nomi-nated, and the address to which anything15referred to in paragraph (b) is to be directed,shall be published in the Iris Oifigiúil;”,

(d) in section 5(1) by inserting the following after the defini-tion of “Appeal Commissioner”:

“ ‘appropriate inspector’ has the same meaning as in20section 2;”,

(e) in section 5(1) by inserting the following for the definitionof “inspector”:

“ ‘inspector’ has the same meaning as in section 2;

‘inspector of returns’ has the same meaning as in section252;”,

(f) in section 636 by deleting subsection (1),

(g) in section 766(1)(a) by deleting the definition of “approp-riate inspector”,

(h) in section 891A(1) by deleting the definition of “appropri-30ate inspector”,

(i) in section 917A by deleting subsection (1),

(j) in section 950(1) by deleting the definitions of “appropri-ate inspector” and “inspector of returns”,

(k) in section 951(11) by deleting paragraphs (a), (b) and (c),35and

(l) in each provision referred to in column (2) of the Table tothis Schedule, by deleting the words set out in column (3)of the Table and by inserting the words, opposite theentry in column (3), as set out in column (4) of the Table.40

2. Part 37 of the Taxes Consolidation Act 1997 is amended—

(a) in section 852(1) by substituting “the Tax Acts and theCapital Gains Tax Acts” for “the Income Tax Acts”,

(b) by deleting sections 854 and 855,

317

(c) in section 857(1) by substituting “the Tax Acts and theCapital Gains Tax Acts” for “the Income Tax Acts in sofar as those Acts relate to tax under Schedule D”,

(d) in section 857(2) by substituting “shall” for “may”,

(e) in section 857(3) by deleting “in relation to tax under 5Schedule D (otherwise than in respect of any such declar-ation made before him or her)”,

(f) in section 857 by deleting subsection (4),

(g) in section 860 by substituting the following for subsection(1): 10

“(1) Subject to subsection (2), a Peace Commissionermay administer an oath to be taken by any officer or per-son in any matter relating to the execution of the Tax Actsor the Capital Gains Tax Acts.”,

(h) in section 861(2) by substituting “under the Tax Acts and 15the Capital Gains Tax Acts” for “under the CorporationTax Acts”,

(i) in section 862 by substituting “under the Tax Acts or theCapital Gains Tax Acts” for “under the Tax Acts”,

(j) in section 866 by substituting “on which any income tax, 20corporation tax or capital gains tax is chargeable” for “onwhich any income tax is chargeable”,

(k) in section 867 by substituting “the Tax Acts and the Capi-tal Gains Tax Acts” for “the Income Tax Acts”,

(l) in section 868 by substituting “the Tax Acts and the Capi- 25tal Gains Tax Acts” for “the Tax Acts” in subsections (1)and (2),

(m) in section 871 by substituting “income tax, or, as the casemay be, with one relating to profits or corporation tax.”for “income tax.”, 30

(n) in section 874(1) by deleting “, assessor”, and

(o) by inserting the following section after section 874:

“Prescribing offorms, etc. 874A.—(1) In this section—

‘the Acts’ means—

(a) the Tax Acts, 35

(b) the Capital Gains Tax Acts,

(c) Part 18C,

(d) Part 18D,

(e) the Capital Acquisitions TaxConsolidation Act 2003, and the 40enactments amending orextending that Act,

318

(f) the Stamp Duties ConsolidationAct 1999, and the enactmentsamending or extending thatAct, and

(g) Chapter IV of Part II of the Fin-5ance Act 1992,

and any instruments made under any ofthose Acts or Parts;

‘form or other document’ includes a formor other document for use, or capable of10use, in a machine readable form.

(2) Where a provision of the Actsrequires that a form or other documentused for any purpose of the Acts is to beprescribed, authorised or approved by the15Revenue Commissioners, other than inrespect of any form which is required by theActs to be prescribed by order or regu-lations made by the Revenue Commis-sioners, such form or other document may20be prescribed, authorised or approved by—

(a) a Revenue Commissioner, or

(b) an officer of the Revenue Com-missioners not below the gradeor rank of Assistant Secretary25authorised by them in writingfor that purpose.

(3) Nothing in this section shall be readas restricting section 12 of the Interpreta-tion Act 2005.”.30

3. Part 1 of Schedule 27 to the Taxes Consolidation Act 1997 isamended—

(a) in the declaration to be made by inspectors (being in theform of the text of the second declaration that is set outin that Part)—35

(i) by substituting “of the Tax Acts and the Capital GainsTax Acts” for “of the Acts relating to income tax”,and

(ii) by deleting “relating to Schedule D”,

(b) by deleting the text of the form of the third declaration in40that Part as set out under the heading “Form of Declar-ation to be Made by Persons Appointed under Section 854or Section 855 as Assessors”, and

(c) in the declaration to be made by the Collector-Generaland officers for receiving tax (being in the form of the45text of the fourth declaration that is set out in thatPart)—

319

(i) by substituting “of the Tax Acts and the Capital GainsTax Acts” for “of the Acts relating to income tax”,and

(ii) by deleting “relating to Schedule D”.

4. Schedule 27 to the Taxes Consolidation Act 1997 is amended 5by deleting Part 2.

5. The Finance Act 2006 is amended by deleting section 123.

TABLE

Consequential Amendments to the Taxes Consolidation Act1997 10


(1) (2) (3) (4)

1 Section 182(1) “appropriate inspector” “prescribed form”and “prescribed form” 15has the samehave the same meanings meaningrespectively

2 Section 246(5), in the appropriate inspector the appropriateparagraph to whom the company inspector(a)(iii)(I) 20makes the return referred

to in section 951

3 Section 264B(1), in the inspector of returns the inspector ofparagraph (b) of specified in section 950 returnsthe definition of“appropriate 25inspector”

4 Section 267E(1), in the inspector of returns the inspector ofparagraph (b) of specified in section 950 returnsthe definition of“appropriate 30inspector”

5 Section 267U(1) the inspector (within the the appropriatemeaning of section 950) inspector

6 Section 784E(8)(a) the appropriate inspector, the appropriatewithin the meaning of 35inspectorthat section,

7 Section 894(1), in the inspector of returns the inspector ofparagraph (c) of specified in section 950 returnsthe definition of“appropriate 40inspector”



10 Section 909(2) the inspector of returns the inspector of(within the meaning of returnssection 951(11))

11 55Schedule 18B, the appropriate inspector the appropriateparagraph 33 (within the meaning of inspector

section 950)

320

SCHEDULE 6

Miscellaneous Technical Amendments in Relation to Tax

1. The Taxes Consolidation Act 1997 is amended—

(a) in section 59(a) by inserting “provisions relating to” after“by virtue of”,5

(b) in section 247(2A)(c) by inserting “of subsection (2)” after“paragraph (a)(i)”,

(c) in section 396C(4)—

(i) in paragraph (a) by substituting “paragraph (b)” for“subparagraph (b)”, and10

(ii) in paragraph (b) by substituting “Paragraph (a)” for“Subparagraph (a)”,

(d) in section 473(1) in column (3) of the Table to the defini-tion of “specified limit” by substituting “4,000” for“3,600”,15

(e) in section 480A(2) by substituting “section 960H” for “sec-tion 1006A”,

(f) in section 511(1)(a)(i) by substituting “Redundancy Pay-ments Acts 1967 to 2003” for “Redundancy PaymentsActs, 1967 to 1991”,20

(g) in section 730K by substituting the following for subsec-tion (5):

“(5) Where an individual is chargeable to tax in accord-ance with subsection (1) in respect of an amount of incomethe tax thereby payable, in so far as it is paid, shall be25treated as an amount of capital gains tax paid for the pur-poses of section 104 of the Capital Acquisitions Tax Con-solidation Act 2003.”,

(h) in section 747E by substituting the following for subsec-tion (5):30

“(5) Where an individual is chargeable to tax in accord-ance with subsection (1) in respect of an amount of incomethe tax thereby payable, in so far as it is paid, shall betreated as an amount of capital gains tax paid for the pur-poses of section 104 of the Capital Acquisitions Tax Con-35solidation Act 2003.”,

(i) in section 772(3G) by substituting “Pensions Act 1990” for“Principal Act”,

(j) in section 831—

(i) in subsection (1)(a)—40

(I) by substituting the following for the definition of“the Directive”:

321

Section 138.

“ ‘the Directive’ means Council Directive2011/96/EU of 30 November 201122 on the com-mon system of taxation applicable in the case ofparent companies and subsidiaries of differentMember States;”, 5

and

(II) in paragraph (ii)(I) of the definition of “foreigntax” by substituting “Annex I, Part B” for “par-agraph (c) of Article 2”,

and 10

(ii) in subsection (2)(a)(i) by substituting “Article 5” for“Article 5.1”,

(k) in section 865A—

(i) in subsection (1) by substituting “section 960H(4)” for“section 1006A(2A)”, and 15

(ii) in subsection (2) by substituting “section 960H(4)” for“section 1006A(2A)”,

(l) in section 886A(3) by deleting “and, for the purposes ofrecovery of a penalty under this subsection, section 1061shall apply in the same manner as it applies for the pur- 20poses of the recovery of a penalty under any of thesections referred to in that section”,

(m) in section 891B(7)(b) by deleting “; and, for the purposesof the recovery of a penalty under this paragraph, section1061 shall apply in the same manner as it applies for the 25purposes of the recovery of a penalty under any of thesections referred to in that section”,

(n) in section 896B—

(i) in subsection (1) by substituting the following for thedefinition of “Commission”: 30

“ ‘Authority’ means the National Transport Authorityor, in the Irish language, An tÚdarás NáisiúntaIompair.”,

and

(ii) in subsection (2) by substituting “Authority” for 35“Commission” in both places where it occurs,

(o) in section 898O by deleting subsection (2),

(p) in section 917EA(7) by deleting “and, for the purposes ofthe recovery of a penalty under this subsection, section1061 applies in the same manner as it applies for the pur- 40poses of the recovery of a penalty under any of thesections referred to in that section”,

(q) in section 1077E(12) by substituting “paragraph (a)(ii)”for “paragraph (b)(ii)”,

22OJ No. L345, 29.12.2011, p.8

322

(r) in section 1078B(6) by substituting “section 905 or 908C,as the case may be” for “that section”, and

(s) in Schedule 29—

(i) in column 2 by substituting the following for “section505(3) and (4)”:5

“section 503(3) and (4) (as substituted by section 33of the Finance Act 2011)section 505(3) and (4) (before the coming into oper-ation of section 33 of the Finance Act 2011)”,

(ii) in column 3 by inserting “section 481(2F)” after “sec-10tion 267B”, and

(iii) in column 3 by substituting the following for “section505(1) and (2)”:

“section 503(1) and (2) (as substituted by section 33of the Finance Act 2011)15section 505(1) and (2) (before the coming into oper-ation of section 33 of the Finance Act 2011)”.

2. The Capital Acquisitions Tax Consolidation Act 2003 isamended—

(a) in section 47(4) by substituting the following for para-20graph (a):

“(a) A return or additional return delivered underthis Act shall be made on a form provided, orapproved of, by the Commissioners.”,

(b) in section 57(6) by substituting “section 960H(4)” for “sec-25tion 1006A(2A)”, and

(c) in section 118(1) by substituting “and any enactmentamending or extending that Act are” for “is”.

3. The Value-Added Tax Consolidation Act 2010 is amended—

(a) in section 2(1) in paragraph (a) of the definition of “tax-30able dealer” by inserting “or of heat or cooling energythrough heating or cooling networks,” after “distribu-tion system,”,

(b) in section 10(1) by inserting “or heat or cooling energythrough heating or cooling networks,” after “distribu-35tion system,”,

(c) in section 59—

(i) in subsection (1) by deleting paragraph (c) of thedefinition of “qualifying activities”, and

(ii) in subsection (2)(e) by inserting “or of heat or cooling40energy through heating or cooling networks,” after“distribution network,”,

(d) in section 64(6)(a)(i)(I) by substituting “applies),” for“applies)”,

(e) in section 66—45

323

(i) in subsection (3)(b) by inserting “the rate at which taxis chargeable and” after “excluding”,

(ii) in subsection (4)(a)(ii) by inserting “the rate at whichtax is chargeable and” after “excluding”, and

(iii) in subsection (4A)(a)(ii) by inserting “the rate at 5which tax is chargeable and” after “excluding”,

(f) in section 105—

(i) in subsection (2) by substituting “section 960H(4)” for“section 1006A(2A)”, and

(ii) in subsection (3) by substituting “section 960H(4)” for 10“section 1006A(2A)”,

(g) in Schedule 1—

(i) in paragraph 8 by substituting the following for subpa-ragraph (1):

“(1) Insurance and reinsurance transactions, and 15the supply of related services by insurance brokersand insurance agents.”,

and

(ii) in paragraph 8(2) by deleting “, in relation toinsurance services,”, 20

and

(h) in Schedule 3—

(i) in paragraph 17(4) by substituting “Regulation34(2)(a)” for “Regulation 6(2)”, and

(ii) in paragraph 22(1) by substituting “paragraph 12(4)” 25for “paragraph 12(3)”.

4. (a) As respects paragraph 1—

(i) subparagraphs (a) to (h), (j), (k), (n), (q) and (r) haveeffect on and from the passing of this Act,

(ii) subparagraph (i) is deemed to have come into force 30and have taken effect on and from 21 December2010,

(iii) subparagraphs (l), (m), (o) and (p) apply as respectspenalties incurred on or after 24 December 2008,and 35

(iv) subparagraph (s) has effect on and from 1 January2012.

(b) Paragraphs 2 and 3 have effect on and from the passing ofthis Act.

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