finance bill 2012

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AN BILLE AIRGEADAIS, 2012FINANCE BILL 2012

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Mar a tionscnaíodhAs initiated

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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.

[No. 5 of 2012]

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Section7. Amendment of section 126 (tax treatment of certain benefits

payable 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.

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

16. Provisions in relation to property incentives and capitalallowances.

17. Retirement benefits.

Chapter 4

Income Tax, Corporation Tax and Capital Gains Tax

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

19. Farm taxation.

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

21. Relevant contracts tax.

22. Amendment of section 482 (relief for expenditure onsignificant buildings and gardens) of Principal Act.

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

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

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

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

27. Life assurance policies and investment funds: rates.

Section28. Amendment of Chapter 5 (policyholders — new basis) of

Part 26 of Principal Act.

29. Undertakings for collective investment and unit holders.

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

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

32. Amalgamations of investment undertakings and offshorefunds.

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

34. Scheme of migration and amalgamation.

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

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

37. Withholding tax relating to certain dividends and interest.

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

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

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

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

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

43. Emissions allowances.

Chapter 5

Corporation Tax

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

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

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

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

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Section48. Amendment of Schedule 24 (relief from income tax and cor-

poration tax by means of credit in respect of foreigntax) to Principal Act.

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

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

51. Unilateral relief (leasing income).

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

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

Chapter 6

Capital Gains Tax

54. Capital gains: rate of charge.

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

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

57. Amendment of section 598 (disposals of business or farm on‘‘retirement’’) of Principal Act.

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

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

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

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

62. Relief for certain disposals of land or buildings.

63. Amendment of section 579 (non-resident trusts) of PrincipalAct.

PART 2

Excise

64. Mineral oil tax: carbon charge.

65. Rates of tobacco products tax.

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

Section67. Amendment of section 65 (cesser of application of mineral

oil tax to coal) of Finance Act 2010.

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

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

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

71. Vehicle registration tax.

PART 3

Value-Added Tax


73. Ministerial orders.

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

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

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

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

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

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

80. Interest payable in certain circumstances.

81. Amendment of section 115 (penalties generally) of PrincipalAct.

82. Amendment of Schedule 2 (zero-rated goods and services) toPrincipal Act.

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

PART 4

Stamp Duties


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

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Section86. Relief for clearing houses.

87. Merger of companies.

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

89. Carbon offsets.

90. Grangegorman Development Agency.

91. Levies on certain institutions.

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

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

PART 5

Capital Acquisitions Tax


95. Amendment of Schedule 2 (computation of tax) to PrincipalAct.

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

97. Amendment of provisions relating to discretionary trusts.

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

99. Amendment of provisions relating to heritage property.

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

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

102. Amendment of provision relating to payment of tax and filingreturn and consequential amendments.

PART 6

Miscellaneous


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

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

106. Returns of certain information by investment undertakings.

Section

107. Returns of payment transactions by payment settlers.

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

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

110. Power of Collector-General to require certain persons to pro-vide return of property.

111. Security for certain taxes.

112. Order to produce documents or provide information.

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

114. Miscellaneous amendments relating to administration.

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

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

117. Miscellaneous amendments: civil partners.

118. Cesser of section 161 of Finance Act 2010.

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

120. 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.

121. Miscellaneous technical amendments in relation to tax.

122. Capital Services Redemption Account.

123. Care and management of taxes and duties.

124. Short title, construction and commencement.

SCHEDULE 1

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

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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

Acts referred to

Asset Covered Securities Act 2001 2001, No. 47Capital Acquisitions Tax Consolidation Act 2003 2003, No. 1Civil Partnership and Certain Rights and Obligations ofCohabitants Act 2010 2010, No. 24Communications Regulation (Postal Services) Act 2011 2011, No. 21Companies Act 1963 1963, No. 33Companies Act 1990 1990, No. 33Customs Consolidation Act 1876 39 & 40 Vict., c.36Finance (1909-10) Act 1910 10 Edw. 7, c.8Finance Act 1950 1950, No. 18Finance Act 1963 1963, No. 23Finance Act 1978 1978, No. 21Finance Act 1983 1983, No. 15Finance Act 1992 1992, No. 9Finance Act 1999 1999, No. 2Finance Act 2001 2001, No. 7Finance Act 2002 2002, No. 5Finance Act 2003 2003, No. 3Finance Act 2005 2005, No. 5Finance Act 2006 2006, No. 6Finance Act 2008 2008, No. 3Finance Act 2009 2009, No. 12Finance Act 2010 2010, No. 5Finance Act 2011 2011, No. 6Finance (Excise Duties) (Vehicles) Act 1952 1952, No. 24Health Insurance Act 1994 1994, No. 16Health Insurance (Miscellaneous Provisions) Act 2011 2011, No. 34Income Tax Act 1967 1967, No. 6Interpretation Act 2005 2005, No. 23Pensions Act 1990 1990, No. 25Property Values (Arbitrations and Appeals) Act 1960 1960, No. 45Redundancy Payments Acts 1967 to 2003Social Welfare Consolidation Act 2005 2005, No. 26Stamp Duties Consolidation Act 1999 1999, No. 31Succession Duty Act 1853 16 & 17 Vict., c.51Taxes Consolidation Act 1997 1997, No. 39Unit Trusts Act 1990 1990, No. 37Value-Added Tax Consolidation Act 2010 2010, No. 31Wildlife (Amendment) Act 2000 2000, No. 38

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AN BILLE AIRGEADAIS, 2012FINANCE BILL 2012

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BILLentitled5

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

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART 1

Income Levy, Universal Social Charge, Income Tax,Corporation Tax and Capital Gains Tax15

Chapter 1

Interpretation

1.—In this Part ‘‘Principal Act’’ means the Taxes ConsolidationAct 1997.

Chapter 220

Universal Social Charge

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,25approved in accordance with Schedule 12, before 1January 2011,’’ after ‘‘Chapter 1 of Part 17,’’,

(b) in paragraph (a)(iii) by deleting ‘‘and’’,

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

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Interpretation (Part1).

Universal socialcharge:miscellaneousamendments.

12

‘‘(iv) any gain exempted from income tax by virtue ofsection 519A(3) or 519D(3) after such a gain isreduced by the market value of the right referredto in subparagraph (iii), and’’,

(d) by inserting the following after paragraph (a)(iv): 5

‘‘(v) the ‘specified amount’ as defined in section825C,’’,

(e) in paragraph (a)(III) by substituting ‘‘PAYE Regulations,and’’ for ‘‘PAYE Regulations’’,

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

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

(h) in paragraph (b)(ii)—

(i) by substituting ‘‘(IV)’’ for ‘‘(V)’’, and

(ii) by deleting ‘‘(iv)’’, 15

(i) in paragraph (b)(vi) by substituting ‘‘section 531AU(1),’’ for‘‘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): 20

‘‘(viii) where section 372AP applies in respect of an indi-vidual, the amount that the individual is deemedto have received as rent in accordance with sub-section (7) of that section where the individualreceived, or was entitled to receive, the 25deduction referred to in subsection (2) of thatsection on 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 encashment

1OJ No. L166 30.4.2004, p.1

amount, or a deemed encashment amount, as the casemay be, under section 787TA, then—

(a) notwithstanding subsection (1) and the Table tothis section, the individual shall be charged touniversal social charge for the tax year in5which the income tax is charged on the fullamount so charged to income tax at whicheverof the rates specified in column (2) or (3), asthe case may be, of that Table is the highestsuch rate, and10

(b) the amount so chargeable to income tax shall notbe regarded as relevant income for the pur-poses of subsection (2).’’,

and

(d) in subsection (4) by substituting ‘‘subsections (2), (2A), (3)15and (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):

‘‘(1A) Where—20

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

(b) an employee realises a gain by the exercise of aright in accordance with the provisions of a25scheme 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 theuniversal social charge required to be deducted under this30Part 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 realise suf-ficient shares to meet that universal social charge liability.

(1B) Where subsection (1A) applies—35

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

(b) the employer shall be acquitted and discharged ofso much of the universal social charge liability asis represented by the shares withheld as if the40value of those shares had been paid to theemployee.

(1C) Subsection (1A) shall not apply where the employeehas otherwise made good to the employer the amount of theuniversal social charge required to be deducted under this45Part and regulations made under this Part in respect of thoseshares or that gain, as the case may be, as is referred to inthat subsection.’’.

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

(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 5a gain realised by an individual by the exercise of a right toacquire shares in a company, section 128B shall, with anynecessary modifications, apply to universal social charge asit applies to income tax and for this purpose—

(a) ‘relevant tax’ as referred to in section 128B shall 10include universal social charge,

(b) ‘B’ in the formula in section 128B(2) shall be thepercentage which is equal to the highest rate setout in column (2) or (3), as the case may be, ofthe Table to section 531AN that is in force for 15the tax year in which the individual realises again by the exercise of a right to acquire sharesin a company, and

(c) where the Revenue Commissioners are satisfiedthat the individual is likely to be chargeable to 20universal social charge for a tax year at a rateother than whichever of the rates set out in col-umn (2) or (3), as the case may be, of the Tableto section 531AN is the highest such rate, section128B(14) shall apply as if the reference to the 25standard rate was a reference to that other rate.’’.

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

‘‘(2) Subsections (3) and (4) of section 531AS, as theyrelate to the aggregation of universal social charge and 30income tax, shall apply for the purposes of this section, withany necessary modifications, as they apply to universal socialcharge due and payable by a chargeable person and as if‘For the purposes of subsection (2)’ were deleted in subsec-tion (4).’’. 35

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

‘‘Universal 531AUA.—Where universal social charge issocial charge charged on the initial market value of shares in 40and

accordance with subparagraph (a)(ii) of the Tableapprovedto section 531AM(1), it shall not be charged—profit sharing 45

schemes.

(a) where there is a disposal of shares, or adeemed disposal of shares, as referredto in subsections (2) and (7), respect-ively, of section 512, on the appropriate 50percentage of the locked-in value ofthose shares as construed in accordancewith subsection (1) of that section, or

(b) where there is a capital receipt within themeaning of section 513(1), on the appro- 55priate percentage of the amount or

value, as the case may be, of that capi-tal receipt.’’.

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

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

‘‘(a) Chapter 1 of Part 38, in relation to the making of5returns of income, and Chapter 4 of that Part, inrelation to the making of enquiries and the exer-cise of the powers, duties and responsibilitiesprovided for by that Chapter,’’,

and10

(b) in paragraphs (b) and (c) by substituting ‘‘Chapters’’ for‘‘Chapter’’.

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

(a) in paragraph (q) by deleting ‘‘and’’ where it last occurs,

(b) in paragraph (r) by substituting ‘‘appeal;’’ for ‘‘appeal.’’, and15

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

‘‘(s) with respect to the deduction, collection and recoveryof amounts to be accounted for in respect ofnotional payments, and

(t) for the making available by the Revenue Com-20missioners of an electronic system or systems toallow employers and employees to fulfil theirobligations under this Chapter and regulationsmade under this Chapter and to allow for elec-tronic communications between the Revenue25Commissioners, officers of the Revenue Com-missioners, employers, employees and otherpersons pursuant to obligations under those pro-visions and for the provision of enhancements orother changes to that system or those systems, as30the case may be, and for any replacement forsuch system or systems.’’.

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

‘‘Delegation 531AAF.—Any act to be performed or function35of functions to be discharged by the Revenue Commissionersand

that is authorised or required by this Part or bydischarge of40regulations made under this Part may be performedfunctions by

electronic or discharged by any one or more of their officersmeans.45 acting under their authority or may, if appropriate,

be performed or discharged through such electronicsystems as the Revenue Commissioners may put inplace for the time being for any such purpose.’’.

(12) Paragraphs (a), (c) and (h)(ii) of subsection (1), (a), (b) and50(d) of subsection (3) and subsections (7), (8) and (9) shall be deemedto have had effect as on and from 1 January 2011.

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Universal socialcharge: surchargeon use of propertyincentives.

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(13) Subsection (1)(l) has effect as respects the liability of an indi-vidual to universal social charge for the year of assessment 2012 andeach subsequent year.

3.——(1) Part 18D of the Principal Act is amended by insertingthe following after section 531AAD: 5

‘‘Property 531AAE.—(1) In this section—reliefsurcharge.

‘aggregate of the specified property reliefs’, inrelation to a tax year and an individual, means the 10aggregate 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 of 15a tax year, means the amount of the specified prop-erty relief used by the individual in respect of thetax year, determined by reference to the entry incolumn (3) of Schedule 25B opposite the referenceto the specified relief concerned in column (2) of 20that 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— 25

(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 Schedule 32,

for the tax year, including any such allowance, or 30part of any such allowance, made for a previous taxyear and carried forward from that previous taxyear in accordance with Part 9;

‘balancing allowance’ means any allowance madeunder section 274; 35

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

(a) a writing down allowance or a balancingallowance made for the tax year, or 40

(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,

including any such allowance or part of such allow- 45ance 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 forthe tax year is €100,000 or more; 50

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

(a) any allowance, or part of any allowance,specified in the definition of ‘area-basedcapital allowance’ or ‘specified capital5allowance’, as the case may be, or

(b) any eligible expenditure within the meaningof Chapter 11 of Part 10, to whichsection 372AP applies, which is to betaken into account in computing under10section 97(1) a deficiency in respect ofany rent from a qualifying premises ora special qualifying premises, within themeaning of section 372AK;

‘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 specifiedproperty relief being used in respect of any tax yearshall be a reference to that part of that specifiedproperty relief to which full effect has been given25for that tax year.

(3) The amount of universal social charge whichis to be charged on the aggregate income for the taxyear concerned of a specified individual under thisPart shall be increased by an amount equal to 5 per30cent of that part of that aggregate income in relationto which an amount of specified property relief or,as the case may be, the aggregate of the specifiedproperty reliefs, has been used by the specified indi-vidual in that tax year.35

(4) For the purposes of this section—

(a) section 485C(3)(ab) and paragraph 4 ofSchedule 25C (as if the references to thetax years 2006 and 2007 in that para-graph were references to the tax years402011 and 2012, respectively) shall applyin determining the amount of any speci-fied property relief to be carried for-ward from any tax year to each sub-sequent tax year, 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

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Share-basedremuneration.

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(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 an indi-vidual who is a chargeable person (within the mean-ing of Part 41), section 958 shall apply and have 5effect as if, in accordance with this section, universalsocial charge had been payable for the tax year2011.’’.

(2) Subsection (1) applies for the year of assessment 2012 and eachsubsequent year of assessment. 10

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 theaggregate’’ for ‘‘the aggregate’’, 15

(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 subsection(4A): 20

‘‘(4B) Where—

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

(b) subsection (4) applies, and 25

(c) the employee has not made good to theemployer the amount of the incometax required to be deducted underthis Part and regulations made underthis Part in respect of those shares, 30

then—

(i) the employer shall be entitled to with-hold and to realise sufficient shares tomeet that income tax liability,

(ii) the employee shall allow such withhold- 35ing as is referred to in paragraph (i),and

(iii) the employer shall be acquitted and dis-charged of such withholding as if theamount of income tax required to be 40deducted had been paid to theemployee.’’.

(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, 45

(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 premium,’’15for ‘‘such total annual premium, and’’,

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

‘‘(IIIa) as respects a relevant contract renewed orentered into on or after 1 January 2012, theamount specified in column (5) of the Table20to this subsection corresponding to the classof insured person mentioned in column (1) ofthat Table or, where the payment made to theauthorised insurer is a monthly or otherinstalment towards the payment of the total25annual premium due under the relevant con-tract, an amount equal to the amount so speci-fied divided by the total number of instal-ments to be made to pay such total annualpremium, and’’,30

and

(f) by substituting the following for the Table to that subsection:

‘‘TABLE

Class of insured person Amount Amount Amount Amountof age-35 of age- of age- of age-related related related related

tax credit tax credit tax credit tax credit(1) (2) (3) (4) (5)

Aged 50 years andover but less than 5540years on the date therelevant contract isrenewed or enteredinto, as the case maybe.45 €200.00 €200.00 Nil Nil

Aged 55 years andover but less than 60years on the date therelevant contract isrenewed or entered50into, as the case maybe. €200.00 €200.00 Nil Nil

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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.

Relief for keyemployees engagedin research anddevelopmentactivities.

20

Class of insured person Amount Amount Amount Amountof age- of age- of age- of age-related related related related

tax credit tax credit tax credit tax credit(1) 5(2) (3) (4) (5)

Aged 60 years andover but less than 65years on the date therelevant contract isrenewed or entered 10into, as the case maybe. €500.00 €525.00 €625.00 €600.00

Aged 65 years andover but less than 70years on the date the 15relevant contract isrenewed or enteredinto, as the case maybe. €500.00 €525.00 €625.00 €975.00

Aged 70 years and 20over but less than 75years on the date therelevant contract isrenewed or enteredinto, as the case may 25be. €900.00 €975.00 €1,275.00 €1,400.00

Aged 75 years andover but less than 80years on the date therelevant contract is 30renewed or enteredinto, as the case maybe. €900.00 €975.00 €1,275.00 €2,025.00

Aged 80 years andover but less than 85 35years on the date therelevant contract isrenewed or enteredinto, as the case maybe. 40€1,175.00 €1,250.00 €1,725.00 €2,400.00

Aged 85 years andover on the date therelevant contract isrenewed or enteredinto, as the case may 45be. €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. 50

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

8.—The Principal Act is amended in Chapter 1 of Part 15 byinserting the following after section 472C: 55

‘‘472D.—(1) In this section—

‘associated company’, in relation to a relevant employer, meansa company which is that employer’s associated company withinthe 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—

(i) is not, and has not been, a director of his or her5employer 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 companyand is not connected to a person who has such10a 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 moreof the duties of his or her employment in the15conception or creation of new knowledge,products, processes, methods and systems,

and

(b) 75 per cent of the cost of the emoluments that arisefrom his or her employment with that relevant20employer 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 the ben-eficial ownership of or ability to control, directly or through the25medium of a connected company or connected companies or byany other indirect means, more than 5 percent of the ordinaryshare capital of the company;

‘ordinary share capital’, in relation to a company, means all theissued share capital (by whatever name called) of the company;30

‘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;

‘tax year’ means a year of assessment for income tax purposes.35

(2) (a) Where under section 766(2A) a relevant employersurrenders an amount for the benefit of a keyemployee, then subject to subsection (3), on themaking of a claim, that employee shall be entitledfor a tax year to have the income tax charged on his40or her relevant emoluments for that tax year reducedby the amount surrendered.

(b) The tax year referred to in paragraph (a) is the taxyear following the tax year during which the account-ing period of the relevant employer ends in respect45of which the amount surrendered under section766(2A) relates.

21

22

(3) (a) Notwithstanding subsection (2), the amount surren-dered under section 766(2A) shall not for any taxyear reduce the amount of income tax payable onthe total income of a key employee including, wheresection 1017 or 1019 apply, on the total income of 5his or her spouse or his or her civil partner to notless than the income tax that would be charged ifsuch total income were charged to income tax at arate of 23 per cent.

(b) Paragraph (a) also applies where subsection (2) and 10paragraph (a) or (b) of subsection (4) applies for thesame tax year.

(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 that 15employee to reduce the income tax charged on hisor her relevant emoluments for the tax year referredto in subsection (2)(b), that employee shall beentitled to have the income tax charged on his or herrelevant emoluments for the next tax year reduced 20by that part.

(b) If and so far as any part of the amount surrenderedby 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 tax 25year, then it may be used in the next following taxyear and so on for each succeeding tax year until thefull 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- 30rendered the amount under section 766(2A).

(5) The amount that a relevant employer is entitled to surren-der, 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. 35

(6) No reduction shall be given under this section unless alltax deducted from emoluments paid by the relevant employerto 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 4 40of Part 42.

(7) Notwithstanding anything contained in this section, wherefor 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 is 45found subsequently that that individual is not for any reason(including that the initial amount, within the meaning of section766(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 to 50that reduction, or equal to part of that reduction, as appropriate,of income tax granted under this section for that tax year.

(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 such 55

notification is not received by the key employee, subsection (6)shall apply as if such notification had been received.

(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 for5that tax year to be a chargeable person for the purposes ofPart 41.’’.

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 ‘‘relievable10interest’’, by substituting ‘‘31 December 2012’’ for ‘‘31December 2011’’,

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

‘‘(b) Notwithstanding paragraph (a), this section shall15continue to apply for the year of assessment2010 and subsequent years of assessment upto and including the year of assessment 2017in respect of qualifying interest paid in respectof a qualifying loan taken out on or after 120January 2004 and on or before 31 December2012.’’,

(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)’’25for ‘‘subsection (1A)(b)(i)’’, and

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

‘‘(ii) notwithstanding subparagraph (i), 30 per centfor the year of assessment 2012 and sub-30sequent years of assessment up to and includ-ing the year of assessment 2017 as respectsqualifying interest paid on a qualifying loantaken out on or after 1 January 2004 and onor before 31 December 2008 to purchase an35individual’s—

(I) first qualifying residence, or

(II) second qualifying residence but onlywhere the first qualifying residence waspurchased on or after 1 January 2004.’’.40

10.—As respects the year of assessment 2012 and each subsequentyear 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 section4533 of the Act of 2005 and regulations made under that section orhas been in receipt of’’ for ‘‘and has, in respect of that period ofunemployment, been in receipt of’’.

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.

24

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

(a) in paragraph (a) by substituting ‘‘€2,250’’ for ‘‘€2,000’’, and

(b) in paragraph (b) by substituting ‘‘€1,125’’ for ‘‘€1,000’’. 5


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

‘‘823A.—(1) In this section—

‘qualifying day’, in relation to an office or employment ofan individual, means a day on or after 1 January 2012 10which is one of at least 10 consecutive days throughoutthe whole of which the individual is present in a relevantstate for the purposes of the performance of the duties ofthe office or employment and which (taken as a whole)are substantially devoted to the performance of such 15duties, but no day shall be counted more than once as aqualifying day;

‘relevant office or employment’ means an office oremployment part of the duties of which are performed ina relevant state on a qualifying day; 20

‘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;

‘relevant state’ means the Federative Republic of Brazil,the Russian Federation, the Republic of India, the 25Peoples Republic of China or the Republic of SouthAfrica;

‘the specified amount’, in relation to a year of assessmentand an individual, means an amount determined by theformula— 30

D × EF

where—

D is the number of qualifying days in the year of assess-ment in relation to the individual,

E is all the income, profits or gains that arise in the yearof assessment from a relevant office or employment, 35whether chargeable under Schedule D or E, andincludes so much of any gain to which section 128applies on which tax is payable in the State where suchgain is realised by the exercise, assignment or releaseof a right obtained by the individual as an office holder 40or employee in the relevant office or employment,after deducting any contribution or qualifying premiumin respect of which there is provision for a deductionunder section 774(7), 787, 787E or 787N butexcluding— 45

(a) any expense to which section 118 applies,

(b) any amount treated as emoluments of anemployment under section 121(2)(b)(ii)by virtue of a car being made availableby reason of the employment,5

(c) any sum treated for the purposes of section112 as a perquisite of an office oremployment by virtue of section 122,

(d) any payment to which section 123 applies,or10

(e) any sum deemed to be profits or gains aris-ing or accruing from an office or employ-ment by virtue of section 127(2),

and

F is the aggregate number of days in the year of assess-15ment that the individual held a relevant office oremployment.

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

(i) an office of director of a company which is20within the charge to corporation tax, orwould be within the charge to corporationtax if it were resident in the State, andwhich carries on a trade or profession,

(ii) an employment other than—25

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

(II) an employment with any board, auth-ority or other similar body estab-30lished by or under statute.

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

(i) is chargeable to tax in accordance withsection 71(3), or35

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

(3) Where for any year of assessment an individualresident in the State makes a claim in that behalf to andsatisfies an authorised officer that either—40

(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 dayswhich are qualifying days in relation to anyother such office or employment of the45individual), or

25

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

26

(b) the number of such days referred to in paragraph(a) in a relevant period in relation to that yearand no part of which period is comprised inany other relevant period,

amounts to at least 60 days, there shall be deducted from 5the income, profits or gains of the individual from alloffices or employments assessable under Schedule D or E,as 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 aggregate 10of those amounts where there is more than one such officeor employment, shall not exceed €35,000.

(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 to 15include any amounts paid in respect of expenses in respectof which a deduction would be due under section 114.

(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 or 20gains from a relevant office or employment attributableto the performance of the duties of the relevant office oremployment on qualifying days in that relevant state, thespecified amount shall be reduced by the amount of suchincome, profits or gains.’’, 25

and

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

‘‘

48A. 30Section 823A (deduction An amount equal to thefor income earned in total amount deductedcertain foreign states). from the individual’s total

income for the tax yearunder section 823A.

’’. 35

(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):

‘‘(1B) This section shall not apply for the year of 40assessment 2012 or any subsequent year of assessment.’’,

and

(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 the 45assessment relates’’ for ‘‘a reference to the end of thetax year in which the emoluments were received for thereference 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—

‘associated company’, in relation to a relevant employer, meansa company which is the relevant employer’s associated company5within the meaning of section 432;

‘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 ofsection 826(1);10

‘relevant employment’, in relation to a relevant employee,means 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 for15a tax year from an employment with a relevant employer orwith 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;20

(b) any amount treated as emoluments of an employmentunder 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;25

(e) any sum deemed to be profits or gains arising or accru-ing from an employment by virtue of section 127(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 by30or 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 tax35year, means an amount determined by the formula—

(A-B) x 30 per cent

where—

A is the amount of the relevant employee’s income, profitsor gains from his or her employment with a relevant40employer or associated company for the tax year, exclud-ing any amount that is not assessed to tax in the State, andafter deducting any contribution or qualifying premium inrespect of which there is provision for a deduction undersection 774(7), 787, 787E or 787N, but where this amount45

27

Special assigneerelief programme.

28

exceeds €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 ‘lowerthreshold’);

‘tax year’ means a year of assessment for income tax purposes. 5

(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- 10cised 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 herrelevant employer to— 15

(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 in 20the 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,and 25

(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). 30

(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- 35med in the State, provided that the number of daysduring which such duties are performed outside theState does not exceed 30 days in any tax year.

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

(i) is resident in the State for tax purposes and is not 40resident elsewhere,

(ii) performs in the State the duties of his or heremployment with a relevant employer or theduties of an employment with an associatedcompany, and 45

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

and makes a claim in that behalf, then that relevantemployee shall be entitled, in respect of each of the5 consecutive tax years commencing with the taxyear for which he or she is first entitled to reliefunder this section, to have an amount of income,5profits or gains from his or her employment with arelevant employer or from his or her employmentwith an associated company equal to the specifiedamount deducted from the income, profits or gainsto be assessed on that relevant employee.10

(b) A claim made under this section shall beaccompanied by a certificate from a relevantemployer or associated company, as the case may be,confirming that the conditions set out in sub-paragraphs (i), (ii) and (iii) of subsection (2)(a) are15satisfied.

(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 the Statefor the purposes set out in subsection (2)(a)(ii) pro-20vided that for that tax year he or she is resident inthe 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 year25provided that for that following tax year he or she isresident 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 provided30that for that following tax year he or she is residentin 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 employment35with an associated company for less than an entire tax year inrespect 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 entitled40to make a claim for relief under subsection (3), the payment orreimbursement 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 her45spouse or civil partner, and a child of the relevantemployee or of the relevant employee’s spouse orcivil partner to—

(i) the country of residence of the relevantemployee before his or her arrival in the State,50

(ii) the country of residence of the relevantemployee at the time of first employment by therelevant employer, or

29

30

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

and

(b) the cost of fees, not exceeding €5,000 per annum inrespect of each child of the relevant employee or 5each 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 andSkills for the purposes of providing primary or post-primary education to students, 10

shall not be chargeable to tax.

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

(a) relief shall not be given under section 823A, 825A or472D for that tax year, and 15

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

(8) Where for a tax year a relevant employee makes a claimfor relief under this section, the relevant employee shall, not- 20withstanding 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.

(9) Notwithstanding the requirement on a relevant employeror associated company, as the case may be, to deduct tax under 25Chapter 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, aRevenue officer confirms in writing that no such deduction needbe made. 30

(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) ofsubsection (2)(a), the relevant employer or associated companyshall be required to deliver to the Revenue Commissioners an 35annual return setting out—

(a) in respect of each such employee—

(i) the name and PPS Number, and

(ii) the amount of income, profits or gains in respectof which tax was not deducted in accordance 40with subsection (9),

and

(b) details of the increase in the number of employeesemployed, or details of the number of employeesretained, by the relevant employer or associated 45company 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 torelief 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 be5excluded from the construction of ‘A’ in the formula in thedefinition 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 this10section, be deemed not to include any amounts paid in respectof expenses for which deductions would be due under section114.’’.

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

(a) in subsection (1) by deleting the definition of15‘‘relevant day’’,

(b) in subsection (1), in paragraph (b)(ii) of the definitionof ‘‘relevant period’’, by substituting ‘‘after the dateof such completion;’’ for ‘‘after the date of suchcompletion,’’,20

(c) in subsection (1), in the definition of ‘‘relevant period’’,by deleting all of the words from ‘‘but in relation toa premises’’ 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),25(5), (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 theamount of that deduction or, as the case may be, the30aggregate amount of those deductions.’’:

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

A − B

where—35

A is the amount of the deduction or, as the case maybe, the aggregate amount of the deductions undersubsection (2) in respect of eligible expenditureincurred on or in relation to the premises, and

B is that part of the amount of any excess (within the40meaning of section 384) that is attributable to thededuction or, as the case may be, the aggregateamount of the deductions under subsection (2) inrespect of eligible expenditure incurred on or inrelation to the premises and which has been carried45forward under section 384 to the year of assessmentin which either of the events, referred to in para-graphs (a) and (b), occurs.’’,

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

(h) by deleting paragraphs (8A), (8B), (8C) and (8D).50

31

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

Provisions inrelation to propertyincentives andcapital allowances.

32

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

‘‘(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 events 5referred to in section 372AP(7) occurs, shall be reduced by theamount represented by B in the formula in that section and thissection 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— 10

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


‘‘(1A) Where a balancing charge is made under 15section 274, in relation to a building or structure, on anindividual for a tax year, then—

(a) to the extent that any unused capital allowancesattributable to capital expenditure incurredon the construction or refurbishment of that 20building or structure, have been carried for-ward in accordance with section 304 or 305 tothe tax year, and are used in that tax year toreduce the amount of the balancing charge,those allowances so used shall not be treated 25as 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 account 30for 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. 35

(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.

16.—Part 12 of the Principal Act is amended by substituting thefollowing for Chapter 4A (inserted by section 23 of the Finance 40Act 2011):

‘‘Chapter 4A

Termination of carry forward of certain losses

Interpretation 409F.—(1) This Chapter applies notwithstand-and general 45ing any other provision of the Tax Acts.(Chapter 4A).

(2) In this Chapter—

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

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

‘area-based capital allowance’ means any allow-5ance, 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,372V, 372W, 372AC or 372AD for a10chargeable period, or

(b) by virtue of paragraph 11 of Schedule 32for a chargeable period,

including any such allowance, or part of any suchallowance, made for a previous chargeable period15and 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, madeunder section 274;20

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

‘chargeable period’ has the same meaning as in25section 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—

(a) the accounting period which begins30immediately after the accountingperiod in which the tax life of thebuilding or structure has ended, or

(b) the accounting period, or the firstaccounting period if there are more35than one, ending in 2015;

‘relevant chargeable period’ means the later of—

(a) the chargeable period which beginsimmediately after the chargeableperiod in which the tax life of the40building or structure has ended, or

(b) the chargeable period, or the first charge-able period if there are more than one,ending in 2015;

‘relevant tax year’ means the later of—45

(a) the tax year which begins immediatelyafter the tax year in which the tax life

33

34

of the building or structure has ended,or

(b) the tax year 2015;

‘specified capital allowance’ means any specifiedrelief that is— 5

(a) a writing down allowance or a balancingallowance made for a chargeableperiod, or

(b) an allowance, or part of such allowance,made under Chapter 1 of Part 9 as that 10Chapter is applied by section 372AX,372AY, 843 or 843A for a chargeableperiod,

including any such allowance or part of such allow-ance made for a previous chargeable period and 15carried forward from that previous chargeableperiod in accordance with Part 9;

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

‘tax life’, in relation to a building or structure, 20means the appropriate period referred to insection 272(4) in respect of that building or struc-ture, after the end of which period no capitalallowance may be made following the disposal ofthe relevant interest (within the meaning of 25section 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 suchallowance as increased under section 273. 30

Termination of 409G.—(1) As respects any tax year, thecapital amount of any specified capital allowance, inallowances.

relation to a building or structure, that is available 35to be carried forward, in accordance with section304 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. 40

(2) As respects any accounting period, theamount 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 any 45subsequent accounting period, inaccordance with section 308(3), or

(b) may be set, in accordance with section308(4), against the profits of anaccounting period preceding the 50relevant accounting period to whichparagraph (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 abuilding or structure, that is available to be carried5forward 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-ject to subsections (5) and (6), be zero for all the10purposes of those Acts.

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

(a) is available to be carried forward to a15relevant accounting period or to anysubsequent accounting period, inaccordance with section 308(3), or

(b) may be set, in accordance with section308(4), against the profits of an20accounting period preceding therelevant accounting period to whichparagraph (a) applies,

shall, subject to subsection (6), be zero for all thepurposes of the Tax Acts.25

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

(6) Notwithstanding subsections (1) to (4),30where 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,35but 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.’’.40

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

(a) in subsection (3A) by substituting the following for the con-struction of ‘‘A’’ in the formula in paragraph (a):

‘‘A is—45

(I) the amount equal to the value of the relevantindividual’s accrued rights under the scheme(including accrued rights which relate toadditional voluntary contributions under thescheme) exclusive of any lump sum paid in50accordance with subsection (3)(f), or

35

Retirementbenefits.

36

(II) the amount equal to the value of the relevantindividual’s accrued rights under the schemewhich relate to additional voluntary contri-butions paid by that individual exclusive ofany part of that amount paid by way of lump 5sum in accordance with subsection (3)(f) inconjunction with the scheme rules, and’’,

(b) in subsection (3A)(aa) by substituting the following for sub-paragraph (ii):

‘‘(ii) clause (I) of the construction of ‘A’ in the formula 10in paragraph (a) had never been enacted.’’,

(c) in subsection (3B)(b) by substituting ‘‘other than in the caseof an individual referred to in clause (II) of the construc-tion of ‘A’ in the formula in subsection (3A)(a) and anindividual referred to in subsection (3A)(aa)’’ for ‘‘other 15than in the case of an individual referred to in subsection(3A)(aa)’’, and

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

‘‘(3H) A retirement benefits scheme shall neithercease to be an approved scheme nor shall the Revenue 20Commissioners be prevented from approving a retire-ment benefits scheme for the purposes of this Chapterbecause of any provision in the rules of the schemeallowing a member who comes within the provisions ofsection 787TA to exercise an option in accordance with 25that section requiring an amount representing the valueof, or part of the value of, the member’s accrued rightsunder the scheme at the date of the exercise of the optionto be transferred by the trustees of the scheme to themember.’’. 30

(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, aretirement annuity contract shall not cease to be an annuity con-tract for the time being approved by the Revenue Com- 35missioners, 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 anindividual to be commuted, where the individual comes withinthe provisions of section 787TA, to such extent as may be neces- 40sary 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’saccrued rights under the contract at the date of the exercise ofthe option to be transferred to the individual by the person with 45whom the contract is made.’’.

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

(a) by deleting subsection (1BA),

(b) in subsection (1C) by substituting ‘‘section 790D(4)’’ for 50‘‘subsection (1BA)(b)’’,

(c) in subsection (1E) by substituting ‘‘subsection (1B)’’ for‘‘subsections (1B) and (1BA)’’,

(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):5

‘‘(3A) Subsection (3) shall not apply where the distri-bution referred to in that subsection is made for the pur-pose 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 on10a chargeable excess under the provisions of Chapter 2Cof this Part in respect of the person beneficially entitledto the assets in the fund.’’,

and

(f) in subsection (4)(c) by substituting the following for all of15the words from ‘‘the qualifying fund manager shall’’ tothe end of the provision:

‘‘the qualifying fund manager shall deduct income taxfrom the distribution under Case IV of Schedule D ata rate of 30 per cent, and—20

(I) the amount so charged to tax—

(A) shall not be reckoned in computing totalincome for the purposes of the TaxActs, and

(B) shall be computed without regard to any25amount deductible from, or deductible incomputing, total income for the purposesof the Tax Acts,

(II) the charging of the distribution in such mannershall be without any relief or reduction30specified in the Table to section 458, or anyother deduction from that distribution, and

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

(d) Where a qualifying fund manager deducts tax in35accordance with paragraph (c), subsections (8) to(15) of section 790AA shall, with any necessarymodifications, apply as if any reference in thosesubsections—

(i) to the administrator were a reference to the40qualifying fund manager,

(ii) to a relevant pension arrangement were a ref-erence to an approved retirement fund, and

(iii) to an excess lump sum were a reference to adistribution of a kind referred to in para-45graph (c).’’.

37

38

(4) Chapter 2A of Part 30 of the Principal Act is amended insection 787K by inserting the following after subsection (2A):

‘‘(2B) A PRSA product (within the meaning of Part X ofthe Pensions Act 1990) shall neither cease to be an approvedproduct under section 94 of that Act nor shall the Revenue 5Commissioners be prevented from approving a product underthat section notwithstanding that the product permits thePRSA administrator, where the PRSA contributor comeswithin the provisions of section 787TA, to make available fromthe PRSA assets to such extent as may be necessary an amount 10for the purposes of an option exercised by the PRSA contribu-tor in accordance with that section requiring an amount rep-resenting the value of, or part of the value of, the PRSA con-tributor’s accrued rights under the product at the date of theexercise of the option to be transferred to the PRSA contribu- 15tor by the PRSA administrator.’’.

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

(a) in subsection (6) by substituting the following for para-graph (b): 20

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

and

(b) by inserting the following after subsection (6): 25

‘‘(7) An administrator referred to in subsection (6)shall be reimbursed for the payment of tax arising on achargeable excess in the following manner—

(a) where the amount of tax paid is 50 per cent or alesser percentage of the amount of the lump 30sum payable to the individual under the rulesof the relevant pension arrangement reducedby the amount of tax charged under subsec-tion (3)(a)(i) or (3)(b)(i)(I) of section 790AAon an excess lump sum (within the meaning 35of subsection (1)(e) of that section), if any, inrespect of that lump sum (in this subsectionreferred to as the ‘net lump sum’), by appro-priating that percentage of the net lump sum,

(b) where the amount of tax paid is greater than 50 40per cent of the net lump sum—

(i) by appropriating not less than 50 per centof the net lump sum, or such higherpercentage as the administrator andthe individual may agree, and 45

(ii) (I) by reducing the gross annual amountof pension payable to the individualunder the rules of the relevant pen-sion arrangement (in this subsectionreferred to as the ‘pension 50reduction’), for a period agreedbetween the individual and the

administrator that does not exceed 10years from the date of first paymentof the pension (in this subsectionreferred to as the ‘agreed period’),such that the pension reduction over5the agreed period is sufficient to reim-burse the administrator for that por-tion of the tax paid as was not reim-bursed under subparagraph (i), if any,(in this subsection referred to as the10‘balance’),

(II) by payment by the individual of anamount equal to the balance to theadministrator within the period of 3months from the date of the benefit15crystallisation event that gave rise tothe chargeable excess, or

(III) by a combination of a pensionreduction over an agreed period asprovided for in clause (I) and pay-20ment of an amount by the individualas provided for in clause (II) wherethe aggregate of the amount of thereduction in the pension over theagreed period and the amount pay-25able by the individual equals thebalance.’’.

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

(a) by inserting the following after subsection (3):30

‘‘(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.’’,

and35

(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 is anadministrator of a kind referred to in para-graph (d) of the definition of ‘administrator’40in section 787O(1) and where relevant, detailsof the amount of unpaid tax required to bepaid by the administrator and remitted to theCollector-General under subsections (18) and(19) of section 787TA, and45

(f) such other information as the Revenue Com-missioners may reasonably require for thepurposes of this Chapter.’’.

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

(a) by inserting the following after section 787R:50

39

40

‘‘Credit for 787RA.—(1) Where, on or after 8 Februarytax paid on 2012, a benefit crystallisation event that gives risean excess

to a chargeable excess in accordance with section 5lump sum.787Q occurs in relation to an individual in respectof a relevant pension arrangement, then, in so faras income tax has been charged under subsection(3)(a)(i) or (3)(b)(i)(I) of section 790AA on an 10excess lump sum (within the meaning of subsection(1)(e) of that section) in respect of a lump sum paid,on or after that date, to the individual—

(a) by the administrator of that relevant pen-sion arrangement (in this section 15referred to as the ‘first-mentionedadministrator’), whether under thatrelevant pension arrangement, or underany other relevant pension arrangementadministered by the first-mentioned 20administrator, or

(b) where the condition in subsection (2) ismet, by the administrator of anotherrelevant pension arrangement,

the income tax on the chargeable excess charged in 25accordance with section 787R (in this sectionreferred to as the ‘chargeable excess tax’) shall bereduced by the aggregate of the amount of incometax on the excess lump sum deducted by the first-mentioned administrator and the amount of income 30tax on the excess lump sum deducted by the otheradministrator (in this section referred to as the‘lump sum tax’).

(2) The condition referred to in subsection (1)(b)is that the first-mentioned administrator obtains 35from the other administrator a certificate stating—

(a) the name and address of the administrator,

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

(c) the relevant pension arrangement in 40respect of which the benefit crystallis-ation event giving rise to the excesslump sum arose,

(d) the date of payment of the lump sum inrespect of which tax on the excess lump 45sum was deducted under section 790AAand the amount of the lump sum, and

(e) the amount of the lump sum tax in respectof the excess lump sum charged to taxin accordance with subsection (3)(a)(i) 50or (3)(b)(i)(I) of section 790AA anddeducted by, and remitted to the Collec-tor-General by the administrator inaccordance with subsection (8) of thatsection. 55

(3) Subject to subsection (4), where the lumpsum tax referred to in subsection (1) is greater thanthe chargeable excess tax referred to in that subsec-tion, the amount by which the lump sum tax exceedsthe chargeable excess tax may be carried forward5and aggregated with the lump sum tax on a lumpsum (if any) paid to the individual under the nextbenefit crystallisation event that occurs in relationto that individual (in this section referred to as the‘tax balance’) and, so far as may be, used to reduce10the amount of the chargeable excess tax arising onthat benefit crystallisation event (in this sectionreferred to as the ‘future chargeable excess tax’)and so on in respect of each successive benefit crys-tallisation event until the tax balance is fully used.15

(4) Where a future chargeable excess taxreferred to in subsection (3) is in respect of a benefitcrystallisation event under a relevant pensionarrangement which is not administered by the first-mentioned administrator and the tax balance20referred to in that subsection has not been fullyused, the administrator of that relevant pensionarrangement shall obtain from the first-mentionedadministrator a certificate stating—

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

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

(c) the amount of the unused tax balance.

(5) Where an administrator receives a certificate30referred to in subsection (4), the future chargeableexcess tax may be reduced by the aggregate of theamount of the unused tax balance referred to in thatcertificate and the lump sum tax, if any, charged bythat administrator in respect of the benefit crystal-35lisation event giving rise to the future chargeableexcess tax.

(6) Subsections (4) and (5) shall apply as appro-priate, and with any necessary modifications, oneach successive occasion on which a benefit crystal-40lisation event occurs in relation to the individualwhere the administrator of that benefit crystallis-ation event and the administrator of the immedi-ately preceding benefit crystallisation event are notthe same person.45

(7) Subsection (6) of section 787R shall, with anynecessary modifications, apply to an administratorwho obtains a certificate under subsection (2) or (4)as if the reference in that subsection (6) to a declar-ation, or declarations were a reference to a certifi-50cate, or certificates, to which subsection (2) or (4)applies.

(8) Any lump sum tax or tax balance referred toin this section—

41

42

(a) shall be used only once to reduce a charge-able excess tax, and

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

and

(b) by inserting the following after section 787T: 5

‘‘Encashment 787TA.—(1) In this section—option.

‘active member’, in relation to a public sectorscheme, means a member of the scheme who is inreckonable service within the meaning of section 102(1) of the Pensions Act 1990;

‘AMRF’ means an approved minimum retirementfund;

‘ARF’ means an approved retirement fund;

‘normal retirement age’, in relation to a public sec- 15tor scheme, means the age that a member of thescheme is required to have reached under the rulesof the scheme to avoid any reduction in benefits onaccount of age disregarding any provisions undersuch rules for early retirement on grounds of 20incapacity;

‘Personal Retirement Savings Account’ has themeaning assigned to it by section 787A and theexpression ‘PRSA’ shall be construed accordingly;

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

‘PRSA administrator’ has the meaning assigned toit by section 787A; 30

‘public sector scheme’ means a relevant pensionarrangement of a kind described in paragraphs (e)and (f) of the definition of ‘relevant pensionarrangement’;

‘qualifying fund manager’ has the meaning assigned 35to it by section 784A;

‘relevant individual’ means an individual who on 8February 2012—

(a) (i) is a member of one or more than oneprivate sector scheme or was such a 40member before that date and one ormore than one benefit crystallisationevent has occurred in respect of thescheme or schemes in the relevantperiod, and 45

(ii) is a member of one or more than onepublic sector scheme,

or

(b) is a member of one or more than oneprivate sector scheme or becomes sucha member after that date and who sub-sequently becomes a member of one ormore than one public sector scheme,5

and who continues as an active member of his orher public sector scheme until, or beyond, the indi-vidual’s normal retirement age under the rules ofthat public sector scheme;

‘relevant manager’, in relation to a relevant individ-10ual, means a qualifying fund manager of an ARF oran AMRF or, as the case may be, a PRSA adminis-trator of a PRSA, the assets in which are ben-eficially owned by that individual;

‘relevant period’ means the period starting on157 December 2005 and ending on 7 February 2012;

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

(2) Subject to subsection (11), this section shallapply in relation to a relevant individual where—20

(a) no benefit crystallisation event hasoccurred in relation to the relevant indi-vidual in the relevant period,

(b) the aggregate of the amounts to be crystal-lised by benefit crystallisation events in25relation to the relevant individual underhis or her private sector scheme orschemes and his or her public sectorscheme or schemes would, but for thissection, exceed the standard fund thres-30hold or, as the case may be, the relevantindividual’s personal fund threshold (inthis section referred to as the ‘specifiedamount’), and

(c) the benefit crystallisation events in relation35to the public sector scheme or schemesof the relevant individual occur after theoccurrence of all other benefit crystallis-ation events in relation to the privatesector scheme or schemes of that40individual.

(3) (a) Where the conditions set out in subsec-tion (4) are met, a relevant individual inrelation to whom subsection (2) appliesand who is aged 60 or over may, on or45before the date on which the first bene-fit crystallisation event occurs in relationto the public sector scheme or schemesof that individual, exercise the option (inthis section referred to as the ‘encash-50ment option’) provided for in subsec-tion (6).

(b) The encashment option may be exercisedby a relevant individual on one occasion

43

44

only and on the same date in relation toeach of the private sector schemes ofthat individual in respect of which he orshe exercises the option.

(4) The conditions are that the relevant 5individual—

(a) notifies the Revenue Commissioners inwriting of his or her intention to exercisean encashment option at least 3 monthsbefore the date on which the first bene- 10fit crystallisation event in relation to thepublic sector scheme or schemes is tooccur and provides the followinginformation—

(i) his or her full name, address and 15PPS Number,

(ii) an estimate of the specified amount,

(iii) particulars of the private sectorscheme or schemes in respect ofwhich the encashment option is to 20be exercised,

(iv) the name, address and telephonenumber of the administrator ofeach such scheme, and

(v) such other information and particu- 25lars as the Revenue Commissionersmay reasonably require for the pur-poses of this section,

and

(b) notifies the Revenue Commissioners, 30within 7 working days of the exercise ofthe encashment option, that the optionhas been exercised and provides aschedule, with the notification, settingout the aggregate amount in respect of 35which the option was exercised and theamounts in respect of each of the privatesector schemes concerned.

(5) Subsections (3) and (4) of section 787P shall,with any necessary modifications, apply to a notifi- 40cation under paragraph (a) or (b) of subsection (4)as they apply to a notification under subsection (2)of that section.

(6) (a) The encashment option is for therelevant individual to irrevocably 45instruct in writing the administrator ofthe private sector scheme or schemes totransfer to the relevant individual theamount (in this section referred to as the‘encashment amount’) of the value of 50the relevant individual’s accrued rightsunder the private sector scheme orschemes, including rights, if any, which

relate to additional voluntary contri-butions under the scheme or schemes,equal to—

(i) where the condition referred to inparagraph (b) applies, the value of5those rights, and

(ii) in any other case, the specifiedamount.

(b) The condition needed is that the amountto be crystallised by the benefit crystal-10lisation events in relation to the relevantindividual under his or her public sectorscheme or schemes exceeds the standardfund threshold, or, as the case may be,the relevant individual’s personal fund15threshold.

(c) (i) In this paragraph—

‘rules’ means anything contained inthe rules of a scheme or the terms andconditions of any contract in respect20of a scheme;

‘tax-free lump sum’ means the lumpsum of a kind that would under therules have been payable tax-free to arelevant individual if section 790AA25had never been enacted;

‘restricted tax-free lump sum’ meansan amount equivalent to the amountdetermined by the formula—

A × BC

where—30

A is the amount of the tax-free lumpsum,

B is—

(I) the specified amount, or

(II) where the encashment option35is exercised by the relevantindividual in respect of anyother private sector scheme orschemes, an amount equivalentto the amount determined by40the formula—

D − E

where—

D equals the specifiedamount, and45

45

46

E equals the encashmentamount or, as the case maybe, the aggregate of theencashment amounts arisingfrom the exercise of the 5encashment option inrespect of the other privatesector scheme or schemes,

and

C is the amount equal to the value of 10the relevant individual’s accruedrights under the scheme.

(ii) Notwithstanding anything containedin this Part or anything containedin the rules, where an encashment 15option is exercised in respect of ascheme and—

(I) the encashment amount is equalto the value of the relevantindividual’s accrued rights 20under the scheme, the tax-freelump sum shall not be pay-able, or

(II) the encashment amount is lessthan the value of the relevant 25individual’s accrued rightsunder the scheme, the tax-freelump sum shall be restricted tothe restricted tax-free lumpsum. 30

(7) Where a relevant individual exercises anencashment option, the whole of the encashmentamount in respect of each of the private sectorschemes of the relevant individual in respect ofwhich the encashment option is exercised shall be 35regarded as income of the individual for the taxyear in which the amount is paid and shall bechargeable to income tax under Case IV of Sched-ule D.

(8) Income tax chargeable in accordance with 40subsection (7) shall be charged at the higher ratefor the tax year in which the payment is made (inthis section referred to as the ‘encashment tax’) andthe administrator of each of the private sectorschemes referred to in subsection (7) shall deduct 45the income tax due from the encashment amountand remit it to the Collector-General in accordancewith subsection (10).

(9) Where an encashment amount is regarded asincome of the individual under subsection (7) and 50charged to tax in accordance with subsection (8)—

(a) such income shall be computed withoutregard to any amount deductible from,or deductible in computing, total incomefor the purposes of the Tax Acts, 55

(b) the charging of that income to tax in suchmanner shall be without any relief orreduction specified in the Table tosection 458, or any other deduction fromthat income, and5

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

(10) Where the administrator of a private sectorscheme or, as the case may be, a relevant managerreferred to in subsection (16) deducts encashment10tax in accordance with subsection (8) or, as the casemay be, subsection (16), subsections (1) to (8) ofsection 787S shall, with any necessary modifications,apply as if any reference in those subsections—

(a) to an administrator included a reference to15a relevant manager,

(b) to a relevant pension arrangement were areference to a relevant individual’sprivate sector scheme,

(c) to a benefit crystallisation event were a ref-20erence to an encashment option,

(d) to a chargeable excess were a reference toan encashment amount, or as the casemay be, a deemed encashment amount,and25

(e) to tax were a reference to encashment tax.

(11) Where—

(a) one or more than one benefit crystallis-ation event has occurred within therelevant period in relation to a relevant30individual under one or more than oneprivate sector scheme of that individ-ual, and

(b) the aggregate of—

(i) the amounts so crystallised, and35

(ii) the amounts to be crystallised in thefuture by benefit crystallisationevents in relation to the relevantindividual—

(I) under his or her other private40sector scheme or schemes, ifany, and

(II) under his or her public sectorscheme or schemes,

would exceed the standard fund thres-45hold or, as the case may be, the relevantindividual’s personal fund threshold(referred to in paragraph (a)(ii) of sub-section (4), as modified by subsection

47

48

(12), and in the construction of ‘B’ inthe formula in subsection (15)(b) as the‘other specified amount’), and

(c) the benefit crystallisation events in relationto the public sector scheme or schemes 5of the relevant individual occur after theoccurrence of all other benefit crystallis-ation events in relation to the privatesector scheme or schemes of thatindividual, 10

then, where the conditions set out in subsection (4),as modified by subsection (12) (in this sectionreferred to as the ‘modified conditions’), are metthe relevant individual may, before the date onwhich the first benefit crystallisation event arises in 15relation to that individual’s public sector scheme orschemes, exercise the encashment option providedfor in subsection (6) as if the benefit crystallisationevent or events referred to in paragraph (a) hadnot occurred. 20

(12) The modified conditions are that therelevant individual complies with subsection (4) asif the following were substituted for subparagraphs(ii) and (iii) of paragraph (a) of that subsection:

‘(ii) an estimate of the other specified amount, 25and

(iii) notwithstanding that one or more than onebenefit crystallisation event hasoccurred in relation to one or more thanone private sector scheme within the 30relevant period, particulars of theprivate sector scheme or schemes inrespect of which the encashment optionis to be exercised,’.

(13) Where a relevant individual to whom subsec- 35tion (11) applies exercises an encashment option inaccordance with subsection (6), then in so far as theexercise of that option relates to—

(a) one or more than one private sectorscheme of the individual in respect of 40which no benefit crystallisation eventhas occurred in the relevant period, sub-sections (7) to (10) shall apply, and

(b) one or more than one private sectorscheme of the individual in respect of 45which one or more than one benefitcrystallisation event has occurred in therelevant period, subsection (14) or (15),as the case may be, shall apply.

(14) (a) Where an encashment option relates to 50a scheme referred to in subsection(13)(b), the value of the individual’saccrued rights under the scheme for thepurposes of the exercise of the option

shall be the amount crystallised by thebenefit crystallisation events and wherethe encashment option has been exer-cised in respect of the whole of thescheme the part of the encashment5amount from which encashment tax is tobe deducted (in this section referred toas the ‘deemed encashment amount’)shall be the amount referred to in para-graph (b).10

(b) Where the benefit crystallisation eventis—

(i) a lump sum paid under the rules ofthe scheme (of a kind that would, ifsection 790AA had never been15enacted, have been paid tax-free tothe individual and in this sectionreferred to as the ‘tax-free lumpsum paid’), the deemed encashmentamount shall be the amount of that20tax-free lump sum paid,

(ii) the transfer of an amount to an ARFthe assets in which are beneficiallyowned by the relevant individual,the deemed encashment amount25shall be the value of the assets inthe ARF at the date of the exerciseof the encashment option,

(iii) the transfer of an amount to anAMRF the assets in which are ben-30eficially owned by the relevant indi-vidual, the deemed encashmentamount shall be the value of theassets in the AMRF at the date ofthe exercise of the encashment35option,

(iv) the retention of the assets of a PRSAin the PRSA (in this sectionreferred to as the ‘vested PRSA’)beneficially owned by the relevant40individual, the deemed encashmentamount shall be the value of theassets in the vested PRSA at thedate of the exercise of the encash-ment option, and45

(v) in any other case, the deemedencashment amount shall be nil.

(c) The whole of the deemed encashmentamount—

(i) shall be regarded as income of the50individual for the tax year in whichthe encashment option is exer-cised, and

49

50

(ii) the amount so regarded as incomeshall be chargeable to income tax inaccordance with subsection (16) or,as the case may be, subsection (19).

(15) (a) Where an encashment option relates to 5a scheme referred to in subsection(13)(b) and that option is exercised inrespect of only part of the scheme—

(i) the encashment amount shall be anamount equivalent to B in the for- 10mula in paragraph (b), and

(ii) where the benefit crystallisationevent was in respect of any one ormore of the events described insubsection (14)(b), the deemed 15encashment amount in respect ofeach of those events shall be anamount equivalent to the amountdetermined by that formula.

(b) The formula is— 20

A × BC

where—

A is—

(i) the amount of the tax-freelump sum paid,

(ii) the value of the assets in the 25ARF at the date of theexercise of the encashmentoption,

(iii) the value of the assets in theAMRF at that date, or 30

(iv) the value of the assets in thevested PRSA at that date,

B has the meaning assigned to it in theformula in the definition of ‘restric-ted tax-free lump sum’ in subsection 35(6)(c)(i) as if in that meaning a ref-erence to specified amount were areference to other specified amount,

and

C is the amount crystallised by the 40benefit crystallisation events underthe scheme.

(c) Paragraph (c) of subsection (14) shallapply to the deemed encashmentamounts referred to in paragraph (a). 45

(16) (a) Any deemed encashment amount shallbe charged to income tax under Case IVof Schedule D.

(b) The relevant manager shall deductincome tax from the deemed encash-5ment amount at the higher rate for thetax year in which the encashment optionis exercised and remit it to the Collec-tor-General in accordance with subsec-tion (10).10

(c) Paragraphs (a) to (c) of subsection (9)shall apply to a deemed encashmentamount regarded as income of therelevant individual under subsection(14)(c) or (15)(c) and charged to income15tax in accordance with paragraph (a).

(d) The deduction of income tax by arelevant manager in accordance withparagraph (b) shall include a deductionfor a deemed encashment amount in20respect of a tax-free lump sum paidunder the rules of the private sectorscheme from which the assets were, inwhole or in part, transferred to the ARFor the AMRF or, as the case may be, in25the case of a scheme that is a PRSA,within which the assets were retained inwhole or in part.

(17) The tax required to be deducted by therelevant manager under subsection (16) shall be30satisfied out of the funds in the ARF, the AMRFor, as the case may be, the vested PRSA beneficiallyowned by the relevant individual and the individualshall allow such deduction and where there are nofunds or insufficient funds available out of which35the relevant manager may satisfy the tax requiredto be deducted, the amount of such tax for whichthere are insufficient funds available (in this sectionreferred to as the ‘unpaid tax’) shall be dischargedin accordance with subsection (18).40

(18) (a) The unpaid tax referred to in subsection(17) shall be deemed to be a charge-able excess in respect of the relevantindividual and shall be paid andremitted to the Collector-General by45the administrator of the relevant indi-vidual’s public sector scheme at thetime of the occurrence of the firstbenefit crystallisation event in respectof the individual in relation to that50scheme and the amount so paid shallbe a debt due to the administratorfrom the individual, or where theindividual is deceased, from his orher estate.55

(b) The administrator referred to in para-graph (a) shall be reimbursed by therelevant individual for the payment

51

52

of the unpaid tax that is deemed tobe a chargeable excess in the mannerprovided for in paragraphs (a) and(b) of section 787Q(7).

(c) The deemed chargeable excess referred 5to in paragraph (a) shall not be con-sidered a chargeable excess for anyother purpose of this Chapter.

(19) (a) Where an encashment option is exer-cised in relation to a private sector 10scheme of a relevant individual in cir-cumstances where a tax-free lumpsum was paid and the remainder ofthat individual’s accrued rights underthe scheme were applied by way of— 15

(i) the purchase of an annuity for theindividual, or

(ii) the payment of a pension to theindividual from the scheme, or

(iii) the transfer to the individual 20under the rules of the scheme ofan amount on the exercise of anoption by the individual undersection 772(3A)(a) or 784(2A)and taxed in accordance with 25section 784(2B) (or, as the casemay be, taxed in accordance withthat section by virtue of section772(3B)), or an amount trans-ferred to the individual at the 30time assets of the PRSA are firstmade available from the PRSAand taxed in accordance withsection 787G(1),

then the deemed encashment amount 35in relation to the tax-free lump sumpaid shall be charged to tax underCase IV of Schedule D.

(b) Tax charged in accordance with para-graph (a) shall be charged at the 40higher rate for the tax year in whichthe encashment option is exercisedand the encashment tax so chargedshall be deemed to be unpaid tax forthe purposes of subsection (18) and 45discharged in accordance with thatsubsection.

(20) Where a benefit crystallisation event hasoccurred in relation to a relevant individual undera private sector scheme in respect of which the indi- 50vidual exercises an encashment option and thebenefit crystallisation event has resulted in the indi-vidual being the beneficial owner of the assets in anARF, an AMRF or, as the case may be, a vestedPRSA (in this subsection referred to as the ‘fund’), 55

then where the exercise of the option was inrespect of—

(a) the whole of the private sector scheme, thevalue of the assets in the fund, or

(b) a part of the private sector scheme, the5value of the assets in the fund that aredeemed to be an encashment amount inaccordance with subsection (15),

shall for the purposes of this Part no longer beregarded as assets held in an ARF, an AMRF or,10as the case may be, a vested PRSA from the dateof the exercise of the option.

(21) Where a relevant individual exercises anencashment option in accordance with subsection(6) the encashment amount shall not be—15

(a) a benefit crystallisation event for the pur-poses of this Chapter and Schedule 23Band where that amount relates to aprivate sector scheme in respect ofwhich one or more than one benefit20crystallisation event has occurred beforethe exercise of the option such benefitcrystallisation events or, as the case maybe, the portion of such benefit crystallis-ation events represented by the amount25of B in the formula in subsection(15)(b), shall be disregarded for the pur-poses of this Chapter and Schedule 23B,

(b) used by the relevant individual as a contri-bution to, or the payment of a premium30under, a relevant pension arrangement,and

(c) regarded under the provisions of Chapter 2or 2A as a distribution from an ARF oran AMRF or, as the case may be, as the35making available to, or paying to, aPRSA contributor of assets of thatamount or value from a PRSA.

(22) (a) The persons liable for income taxcharged in accordance with subsec-40tion (8), (16) or (19) shall be therelevant individual and the adminis-trator of the private sector scheme,the relevant manager referred to insubsection (16) or, as the case may45be, the administrator of the publicsector scheme referred to in subsec-tion (18) and their liability shall bejoint and several.

(b) A person liable for income tax charged50in accordance with subsection (8),(16) or (19) shall be so liable whetheror not that person or any other per-son who is liable for the charge is

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54

resident or ordinarily resident in theState.’’.

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

‘‘Imputed 790D.—(1) In this section— 5distributionfrom certain

‘additional voluntary PRSA contributions’ has thefunds.meaning assigned to it by section 787A(1); 10

‘approved minimum retirement fund’ has the mean-ing assigned to it by section 784C and for the pur-poses of this section the expression ‘AMRF’ shallbe construed accordingly;

‘approved retirement fund’ has the meaning 15assigned to it by section 784A and for the purposesof this section the expression ‘ARF’ shall be con-strued accordingly;

‘contributor’ has the meaning assigned to it bysection 787A; 20

‘excluded distributions’ means one or more of thefollowing:

(a) a specified amount, if any, regarded as adistribution or the making available ofPRSA assets under subsection (4); 25

(b) a payment, transfer or assignment of theassets of an ARF to another ARF thebeneficial owner of the assets in whichis the individual who is beneficiallyentitled to the assets in the first-men- 30tioned ARF, whether or not the pay-ment, transfer or assignment is made tothe individual;

(c) a transaction regarded as a distribution forthe purposes of section 784A by virtue 35of subsection (1A) of that section;

(d) a transfer referred to in section 784C(5)(a);

(e) assets made available from a PRSA, beingassets of a kind referred to in section787G(3); 40

(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 set out 45in section 784A(3A);

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

(a) a qualifying fund manager, 50

(b) a PRSA administrator, or

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

and which manages or administers, as the case maybe, on the specified date—5

(i) one or more than one ARF,

(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 the10individual;

‘Personal Retirement Savings Account’ has themeaning assigned to it by section 787A and for thepurposes of this section the expression ‘PRSA’ shallbe construed accordingly;15

‘PRSA administrator’ has the meaning assigned toit by section 787A;

‘qualifying fund manager’ has the meaning assignedto it by section 784A;

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

(a) the distributions, if any, made during thetax year by a qualifying fund manager inrespect 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 which30are beneficially owned by the indi-vidual and managed by that qualify-ing fund manager, (in this para-graph referred to as the ‘funds’)being funds the assets in which35were first accepted into the fundsby the qualifying fund manager onor after 6 April 2000, and

(b) the assets, if any, that a PRSA adminis-trator makes available to, or pays to, the40individual or to any other person duringthe tax year from one or more than onevested PRSA that is beneficially ownedby that individual and administered bythat PRSA administrator,45

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;

55

56

‘relevant fund’ means all of the—

(a) ARFs, and

(b) vested PRSAs,

beneficially owned by the same individual on thespecified date other than ARFs the assets in which 5were first accepted into the funds by the qualifyingfund manager before 6 April 2000;

‘specified amount’, for a tax year, means an amountequivalent to the amount determined by theformula— 10

(A × B)100

− C

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 relevant fundon the specified date, excluding, where appropri- 15ate, the value of assets retained by the PRSAadministrator as would be required to be trans-ferred to an AMRF if the beneficial owner ofthe PRSA had opted in accordance with section787H(1), 20

B is—

(i) 5, where the relevant value is not greaterthan €2,000,000, or

(ii) 6, where the relevant value is greater than€2,000,000, 25

and

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

‘specified date’ means 30 November in the tax year;

‘tax year’ means a year of assessment for income 30tax purposes;

‘vested PRSA’ means—

(a) a PRSA in respect of which assets of thePRSA have been made available to, orpaid to, the PRSA contributor or to any 35other person, by the PRSA adminis-trator on or after 7 November 2002,other than assets of a kind referred toin paragraphs (b), (c) and (d) of section787G(3), and for the purposes of this 40definition the provisions of subsections(4) and (4A) of section 787G shallapply, and

(b) in the case of a PRSA that is a PRSA towhich an individual is or was the con- 45tributor of additional voluntary PRSA

contributions, such a PRSA where bene-fits become payable to the individualunder the main scheme on or after 7November 2002.

(2) For the purposes of this section, references to5the value of an asset in a relevant fund shall, exceptwhere the asset is cash, be construed as a referenceto the market value of the asset within the meaningof section 548.

(3) This section applies for any tax year in which10an individual—

(a) has a relevant fund, and

(b) is aged 60 years or over for the whole ofthat tax year.

(4) Subject to the other provisions of this section,15the specified amount shall for the purposes of sub-sections (3) and (7)(b) of section 784A or, as thecase may be, subsections (1) and (2) of section 787Gbe regarded as—

(a) where the relevant fund comprises one or20more than one ARF, a distribution ofthat amount from an ARF,

(b) where the relevant fund comprises one ormore than one vested PRSA, the mak-ing available to, or paying to, the PRSA25contributor of assets of that amount orvalue from a PRSA,

(c) where the relevant fund comprises one ormore than one ARF and one or morethan one vested PRSA and—30

(i) the qualifying fund manager and thePRSA administrator of each ARFand of each PRSA concerned arethe same person, a distribution ofthat amount from an ARF,35

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

(iii) the nominee appointed in accord-40ance with subsection (5) is a PRSAadministrator, the making availableto, or paying to, the PRSA con-tributor of assets of that amount orvalue from a PRSA, or45

(iv) the nominee appointed in accord-ance with subsection (5) is both aqualifying fund manager and aPRSA administrator, a distributionof that amount from an ARF,50

not later than the second month of the tax year fol-lowing the tax year in respect of which the specifiedamount is determined.

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58

(5) Where—

(a) an individual has a relevant fund and—

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

(ii) the relevant fund comprises— 5

(I) more than one ARF, or

(II) more than one vested PRSA, or

(III) one or more than one ARF andone or more than one vestedPRSA, 10

and

(iii) in relation to each such relevantfund the qualifying fund manager ofeach ARF concerned and thePRSA administrator of each vested 15PRSA concerned are not the sameperson,

or

(b) where an individual has a relevant fundand the relevant value is greater than 20€2,000,000 and subparagraphs (ii) and(iii) of subsection (a) apply,

then the individual referred to in paragraph (a)may, and the individual referred to in paragraph (b)shall, appoint one of those persons (in this section 25referred to as the ‘nominee’) for the purposes ofthis section and the nominee shall accept suchappointment.

(6) Where an individual appoints a nominee inaccordance with subsection (5) the individual 30shall—

(i) inform the other manager or theother managers, as the case may be,of such appointment for the pur-poses of this section, 35

(ii) where the appointment under sub-section (5) is compulsory, advise theother manager or the other man-agers, as the case may be, of thatfact, and 40

(iii) provide the other manager or theother managers, as the case may be,with the full name, address andtelephone number of the nominee.

(7) Where an individual appoints a nominee in 45accordance with subsection (5)—

(a) the other manager or the other managers,as the case may be, shall within 14 days

of the specified date provide the nomi-nee with a certificate for that tax yearstating the aggregate value (subject toparagraph (b)) of the assets on that datein, and the relevant distributions from—5

(i) the ARF or ARFs, or

(ii) the vested PRSA or vested PRSAs,or

(iii) the ARF or ARFs and the vestedPRSA or vested PRSAs,10

managed or administered by the othermanager or the other managers,

(b) the aggregate value of the assets referredto in paragraph (a) shall, where theassets are in one or more than one15vested PRSA, exclude the value of suchassets, if any, retained by the PRSAadministrator as would be required tobe transferred to an AMRF if the ben-eficial owner of the PRSA had opted in20accordance with section 787H(1), and

(c) the nominee shall keep and retain for aperiod of 6 years each certificate so pro-vided and on being so required by noticegiven to the nominee in writing by an25officer of the Revenue Commissioners,make available within the time specifiedin the notice such certificates as may berequired by the notice.

(8) Where an individual appoints a nominee in30accordance with subsection (5) and the nomineereceives a certificate or, as the case may be, certifi-cates provided in accordance with subsection (7)(a),from the other manager or from one or more ofthe other managers, the specified amount shall be35determined by the nominee as if the value of theassets and the relevant distributions stated in eachcertificate so received were the value of assets inand relevant distributions from an ARF or a vestedPRSA managed or administered by the nominee in40that tax year.

(9) Where an individual appoints a nominee inaccordance with subsection (5) in respect of arelevant fund of a kind referred to in paragraph (a)of that subsection and—45

(a) the nominee does not receive a certificatereferred to in subsection (7)(a) from theother manager, or

(b) the nominee does not receive a certificatereferred to in subsection (7)(a)—50

(i) from any of the other managers, or

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

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60

then—

(I) where paragraph (a) or (b)(i)applies, the nominee and theother manager or, as the casemay be, the nominee and each 5of the other managers, and

(II) where paragraph (b)(ii) applies,each of the other managers inrespect of which the nomineehas not received a certificate, 10

(in this subsection referred to as the ‘relevantmanager’) shall determine the specified amount inaccordance with this section as if the relevant fundof the individual was comprised solely, as the casemay be, of— 15

(A) the ARF or ARFs,

(B) the vested PRSA or vested PRSAs, or

(C) the ARF or ARFs and the vested PRSA orvested PRSAs,

managed or administered by the relevant manager. 20

(10) Where an individual appoints a nominee inaccordance with subsection (5) in respect of arelevant fund of a kind referred to in paragraph (b)of that subsection and paragraph (a) or (b) of sub-section (9) applies, the specified amount shall be 25determined in accordance with subsection (9) as ifB in the formula for the specified amount was 6.

(11) Where an individual has a relevant fund ofa kind referred to in subsection (5)(a) and the indi-vidual opts not to appoint a nominee as provided 30for in that subsection, then each person who on thespecified date is—

(a) a qualifying fund manager,

(b) a PRSA administrator, or

(c) both a qualifying fund manager and a 35PRSA administrator,

of one or more than one ARF, one or more thanone 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 shall 40determine the specified amount in accordance withthis section as if the relevant fund was comprisedsolely, as the case may be, of—

(i) the ARF or ARFs,

(ii) the vested PRSA or vested PRSAs, or 45

(iii) the ARF or ARFs and the vested PRSA orvested PRSAs,

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.

(c) Paragraph (d) of subsection (1), subsection (2), paragraphs5(d) and (e) of subsection (3) and subsections (4) to (7)have effect from 8 February 2012.

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

(e) Subsection (8) has effect for the year of assessment 201210and subsequent years of assessment.

Chapter 4

Income Tax, Corporation Tax and Capital Gains Tax

18.—(1) Section 176 of the Principal Act is amended in subsection(1)(b)(i) by substituting the following for clause (I):15

‘‘(I) on or before 31 October in the year in which inherit-ance tax is due to be paid in accordance with section46(2A) of the Capital Acquisitions Tax Consoli-dation Act 2003 in respect of a taxable inheritance(within the meaning of section 11 of that Act) of the20company’s shares taken by that person, a liability toinheritance tax in respect of that inheritance, or’’.

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

19.—The Principal Act is amended—

(a) by inserting the following after section 664:25

‘‘Relief for 664A.—(1) In this section—increase incarbon tax on

‘accounting period’, in relation to afarm diesel.30person, means—

(a) where the person is a company, anaccounting period determinedin accordance with section 27,or35

(b) where the person is not a com-pany, a period of one year end-ing on the date to which theaccounts of the person areusually made up,40

but, where accounts have not been made upor where accounts have been made up for agreater or lesser period than one year, theaccounting period shall be such period notexceeding one year as the Revenue Com-45missioners may determine;

61

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

Farm taxation.

62

‘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 oil described 5as ‘‘other heavy oil’’ in Schedule 2A to theFinance Act 1999 used by a person in thecarrying on of a trade of farming, but doesnot include such oil used for the purpose ofhome heating; 10

‘relevant carbon tax’ means an amountequivalent to the amount determined by theformula—

A − B

where— 15

A is the amount of the carbon taxincluded in a deduction in respect offarm diesel in the computation by aperson of the amount of the profits orgains of that person to be charged to 20tax under Case I of Schedule D, and

B is the amount of the carbon tax thatwould have been included in thatdeduction if the amount of the carbontax had been calculated at the rate of 25€41.30 per 1,000 litres of farm diesel.

(2) Where—

(a) a person carries on in an accountingperiod a trade of farming inrespect of which the person is 30within the charge to tax underCase I of Schedule D, and

(b) in the computation of the amount ofthe profits or gains of that tradethe person is, apart from this 35section, entitled to any deductionon account of farm diesel,

then such person shall be entitled in thatcomputation to a further deduction for farmdiesel of an amount equal to the relevant 40carbon tax.’’,

(b) in paragraph 1(k) of the Table to section 667B by substitut-ing ‘‘Horsemanship;’’ for ‘‘Horsemanship.’’,

(c) in paragraph 1 of the Table to section 667B by inserting thefollowing after subparagraph (k): 45

‘‘(l) Level 6 Specific Purpose Certificate in FarmAdministration.’’,

and

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

‘‘Special 667C.—(1) In this section—provisions forregistered

‘qualifying farmer’ has the meaningfarm5assigned to it by section 667B;partnerships.

‘registered farm partnership’ means a milkproduction partnership within the meaningof the European Communities (Milk10Quota) Regulations 2008 (S.I. No. 227 of2008).

(2) Subject to subsection (3), where a per-son is a partner in a registered farm partner-ship, section 666 shall apply as if in that15section—

(a) in subsection (1) ‘50 per cent’ weresubstituted for ‘25 per cent’, and

(b) the following was substituted forsubsection (4)—20

‘(4) (a) A deduction shall not beallowed under this sectionin computing a company’strading income for anyaccounting period which25ends after 31 December2015.

(b) Any deduction allowed byvirtue of this section incomputing the profits or30gains of a trade of farmingfor an accounting period ofa person other than a com-pany shall not apply for anypurpose of the Income Tax35Acts for any year of assess-ment later than the year2015.’.

(3) Where a person referred to in sub-section (2) is a qualifying farmer, section40667B shall apply for the purposes of thissection as if in subsection (5)(a) of thatsection ‘50 per cent’ were substituted for‘25 per cent’.

(4) This section shall not apply for any45accounting period which ends before 1 Jan-uary 2012 or ends after 31 December 2015.

(5) This section comes into operation onsuch day as the Minister for Finance mayappoint by order.’’.50

63

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

Relevant contractstax.

64

20.—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: 5

‘‘178. Central Bank of Ireland.’’,and

(d) by inserting the following after paragraph 187:

‘‘188. Health and Social Care Professional Council.’’.

21.—(1) Chapter 2 of Part 18 of the Principal Act is amended— 10

(a) in section 530(1) by substituting the following for paragraph(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, 15power supply, drainage, sanitation, water sup-ply, or burglar or fire protection,’’,

(b) in section 530(1) by substituting the following for paragraph(ca) in the definition of ‘‘construction operations’’:

‘‘(ca) the installation, alteration or repair in or on any 20building or structure of systems of telecom-munications,’’,

(c) in section 530(1) by substituting the following for the defini-tion of ‘‘deduction summary’’:

‘‘ ‘deduction summary’, in relation to a return period, 25means a statement (adjusted as appropriate in accord-ance with regulations made under this Chapter) whichthe Revenue Commissioners cause to be issued to a regis-tered principal setting out, in summary form—

(a) details in respect of each relevant payment noti- 30fied by that principal under section 530Cwhich is, in accordance with regulations madeunder this Chapter, the subject of a validdeduction authorisation at the time of issue ofthe deduction summary, and 35

(b) the aggregate amount of tax that is, based on thedetails referred to in paragraph (a), payableby the principal in respect of the returnperiod,

and includes a statement to the effect that no such 40relevant payments were notified, where that is the case;’’,

(d) in section 530(1) in the definition of ‘‘relevant contract’’, bysubstituting ‘‘including persons in partnership’’ for ‘‘includ-ing a partnership in respect of which the principal has notreceived a relevant payments card’’,

(e) in section 530(1) by inserting the following after the defini-5tion 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 any10particular time such that a person is unable to complywith an obligation under this Chapter or regulationsmade under this Chapter, or circumstances where a per-son concerned is unable to use the electronic system atany particular time because of a general or partial sys-15tems failure of an internet service provider or of an elec-tricity service provider, occurring in the general localityof the person’s place of business;’’,

(f) in section 530A(1) by deleting ‘‘or’’ where it last occurs inparagraph (f), by substituting ‘‘undertaking, or’’ for20‘‘undertaking.’’ in paragraph (g) and by inserting the fol-lowing after 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.’’,25

(g) in section 530B(1) by substituting the following for para-graph (a):

‘‘(a) information in relation to—

(i) the identity of the subcontractor, includ-ing name and tax reference number,30

(ii) the estimated contract value,

(iii) the estimated contract duration, includingthe estimated start date and estimatedend date of the contract,

(iv) the location or locations at which relevant35operations 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 subsection40(1):

‘‘(1A) (a) Before providing the information and dec-laration referred to in subsection (1), aprincipal shall be satisfied as to theidentity of the subcontractor concerned.45

(b) For the purposes of paragraph (a), a princi-pal shall require documentary evidenceof identity from the subcontractor andshall make and retain a copy of thedocumentary evidence provided, or50

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66

record and retain relevant details fromthe documentary evidence given.’’,

(i) in section 530B by substituting the following for subsection(4):

‘‘(4) The Revenue Commissioners shall make regu- 5lations for the purposes of this section and such regu-lations may—

(a) specify the manner by which principals shallcommunicate electronically with the Rev-enue Commissioners, 10

(b) in the case of a labour only contract, provide forthe submission of additional information inrelation to the contract,

(c) provide for the issuing of an acknowledgementby the Revenue Commissioners to a principal 15following notification by the principal of acontract under subsection (1) and for themanner by which such acknowledgementmay issue,

(d) provide for notification to a subcontractor by the 20Revenue Commissioners of details of a con-tract, including changes to the terms of a con-tract, in respect of which a principal has noti-fied the Revenue Commissioners undersubsection (1) that the subcontractor is a 25party and for the manner by which such noti-fication may issue,

(e) provide for notification to the Revenue Com-missioners by a principal of changes to theterms of a contract which has been notified 30under subsection (1),

(f) provide for a principal to notify a subcontractorwhere the Revenue Commissioners areunable to verify the identity of the subcon-tractor by reference to the name and tax ref- 35erence number supplied to the Revenue Com-missioners by the principal under subsection(1), and

(g) provide for any other related matters.’’,

(j) in section 530C by substituting the following for subsection 40(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 45communicate electronically with the Rev-enue Commissioners,

(b) provide for the details to be supplied by a princi-pal in relation to a payment referred to in sub-section (1), 50

(c) specify the circumstances in which and themeans by which a principal may cancel a noti-fication given under subsection (1),

(d) specify the circumstances in which notificationunder this section is deemed not to have5been given,

(e) provide for notification to a subcontractor wherea payment notification is cancelled, and

(f) provide for any other related matters.’’,

(k) in section 530D by substituting the following for subsec-10tion (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-15missioners 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-20orisation,

(c) specify the details to be contained in adeduction summary,

(d) specify the obligations on a principal to ensurethat a deduction summary accurately reflects25the details of all relevant payments made, andtax 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-30graph (c):

‘‘(c) shall be 35 per cent where the Revenue Com-missioners have made a determination thatthe subcontractor is a person to whom neithersection 530G nor section 530H apply, and35

(d) shall, in the case of a partnership, be the highestrate that would apply to any of the individualpartners following a determination by theRevenue Commissioners under section530I.’’,40

(m) in section 530F(2) by substituting the following for para-graph (b):

‘‘(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 of45€5,000 or the amount of the tax payable underparagraph (a), whichever is the lesser.’’,

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68

(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 pay-ment in a return for the relevant return period 5by the due date for the return and, if appro-priate, provides the Revenue Commissionerswith such details, in relation to the relevantcontract in respect of which the relevant pay-ment was made, as may be required by the 10Revenue Commissioners, the Revenue Com-missioners shall establish the amount of taxthat would have been due from the principalin respect of that payment had the rate of taxbeen the rate of tax last notified by the Rev- 15enue Commissioners to the subcontractorconcerned under section 530I and, notwith-standing the provisions of subsection (2)(a),the tax due from the principal in respect ofthat payment by virtue of that subsection shall 20be the amount so established.’’,

(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 to 25any adjustment of the tax due as a result ofthe application of paragraph (a).’’,

(p) in section 530F by substituting the following for subsection(4):

‘‘(4) Where, in making a relevant payment to a sub- 30contractor, a principal deducts tax from the payment, theprincipal shall—

(a) provide the subcontractor with a copy of thededuction authorisation related to that pay-ment, or 35

(b) arrange for the following details from thededuction authorisation to be given to thesubcontractor by written or electronic means:

(i) the name and tax reference number ofthe principal, 40

(ii) the name and tax reference number ofthe subcontractor,

(iii) the gross amount of the payment, includ-ing the amount of tax deducted,

(iv) the amount of tax deducted, 45

(v) the rate at which tax was deducted,

(vi) the date of the payment, and

(vii) the unique reference number issued bythe Revenue Commissioners on thededuction authorisation.’’,

(q) in section 530F by inserting the following after subsection(6):5

‘‘(7) Where, due to a persistent technology systemsfailure, 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 apply10to 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 per15cent from that payment,

(b) immediately upon rectification of the technologysystems failure notifies the Revenue Com-missioners, in accordance with this Chapter orregulations made under this Chapter, that the20payment 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-25graph (a) to the Revenue Commissioners onor before the due date for the making of areturn for the period within which the princi-pal notifies the Revenue Commissionersunder paragraph (b).30

(8) Where a principal complies with the requirementsof subsection (7)—

(a) the principal shall be deemed to have deductedtax from a relevant payment in accordancewith the terms of a valid deduction authoris-35ation, and

(b) for the purposes of section 530K, the paymentshall be deemed to have been made in thereturn period in which the principal notifiesthe Revenue Commissioners under subsec-40tion (7)(b).

(9) A principal shall, on request, provide the RevenueCommissioners with information in relation to the cir-cumstances and details of a persistent technology systemsfailure under subsection (7).’’,45

(r) in section 530G(2) by substituting the following for para-graph (a):

‘‘(a) engaged in the business of carrying out relevantcontracts in partnership unless the partner-ship business itself has complied with the obli-50gations referred to in subsection (1) and the

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Revenue Commissioners are satisfied that itwill continue to comply with thoseobligations,’’,

(s) in section 530H(3) by substituting the following for para-graph (a): 5

‘‘(a) a person engaged in the business of carrying outrelevant contracts in partnership unless thepartnership business itself has complied withthe obligations referred to in subsection (1)and the Revenue Commissioners are satisfied 10that it will continue to comply with those obli-gations, or’’,

(t) in section 530H by inserting the following after subsection(3):

‘‘(4) This section also applies to a person who satisfies 15the Revenue Commissioners that, in all the circum-stances, the matter or matters referred to in subsection(1), (2) or (3), which would otherwise cause such personnot to be a person to whom this section applies, ought tobe disregarded for the purposes of this section.’’, 20

(u) in section 530I by substituting the following for subsection(2):

‘‘(2) Following a determination under subsection (1),the Revenue Commissioners shall notify the subcontrac-tor of the determination and the rate of tax resulting from 25such determination.’’,

(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)— 30

(a) until after a period of 30 days has elapsed follow-ing the previous determination made by theRevenue Commissioners in respect of a sub-contractor,

(b) if an appeal by a subcontractor is awaiting deter- 35mination under subsection (3), or

(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 subsection 40(3):

‘‘(3) The Revenue Commissioners shall make regu-lations for the purposes of this section and such regu-lations may provide for—

(a) keeping and maintaining the register, 45

(b) registration and time for registration,

(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,5

(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 subsection10(2):

‘‘(2) (a) For the purposes of subsection (1), wherethe Revenue Commissioners issue, undersection 530D(3), a deduction summary to aprincipal for a return period, the details on15that summary shall, for the purposes of theTax Acts, be deemed to be a return madeby the principal to the Collector-Generalin respect of the return period and theamount of tax specified on that summary20shall be deemed to be the amount specifiedby the principal of his or her tax liabilityunder this Chapter in respect of thatreturn period.

(b) Paragraph (a) does not apply where a princi-25pal is required to amend the details on adeduction summary in accordance withregulations made under this section and tosubmit a return under subsection (1) inaccordance with those amended details,30and so submits the required return.’’,

(y) in section 530K by substituting the following for subsection(5):

‘‘(5) The Revenue Commissioners shall make regu-lations for the purposes of this section and such regu-35lations may provide for—

(a) the manner by which principals shall communi-cate electronically with the Revenue Com-missioners,

(b) the particulars to be included in the return40required under this section,

(c) the obligations on, and the actions to be takenby, a principal to ensure that any relevantpayment made by a principal relating to areturn period and the tax liability related to45that payment are accurately reflected on thereturn required under this section,

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72

(d) provide for notification to a subcontractor inrelation to actions taken by a principal asreferred to in paragraph (c), and

(e) any other related matters.’’,

(z) in section 530M by substituting the following for subsec- 5tion (1):

‘‘(1) Notwithstanding the requirements of section530K(1), and without prejudice to any penalty to whichthe principal may be liable, a principal may, asappropriate— 10

(a) make a return required under section 530K(1)after 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 section 15530K(2) but—

(i) no amendment may be made in relationto any payment which has been the sub-ject of a deduction authorisation undersection 530D, and 20

(ii) no amendment may be made to a returnwhere a Revenue officer has commencedan audit or other investigation in relationto the tax affairs of the principal to whomthe return relates for the chargeable 25period in which the return period falls.’’,

(aa) in section 530M by substituting the following for subsec-tion (5):

‘‘(5) The Revenue Commissioners shall make regu-lations for the purposes of this section and such regu- 30lations may provide for—

(a) the manner by which principals shall communi-cate electronically with the Revenue Com-missioners,

(b) the particulars to be included in a return under 35this section,

(c) the actions to be taken by a principal to ensurethat any relevant payment made by a princi-pal relating to a return period and the taxliability related to that payment are accurately 40reflected 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-ment under section 530N, and

(e) any other related matters.’’, 45

(ab) by substituting the following for section 530P:

‘‘Treatment 530P.—(1) Where a principal deducts taxof deducted from a payment to a subcontractor in accord-tax.5

ance with section 530F, such tax shall betreated as a payment on account by thesubcontractor—

(a) of income tax for that tax year,where the tax was deducted in10the basis period for a tax year, or

(b) of corporation tax for that account-ing period, where the tax wasdeducted in an accounting periodof a company.15

(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 foroffset by the Revenue Com-20missioners against other taxliabilities of a subcontractorand in this subsection ‘tax’ hasthe same meaning as insection 960A.25

(b) The Revenue Commissionersshall notify a subcontractor ofthe amount of deducted tax, ifany, which is offset againstother tax liabilities of the sub-30contractor.

(4) Where an assessment to income tax or,as the case may be, corporation tax has beenmade in relation to a subcontractor for achargeable period, then deducted tax related35to that period less any amount which iseither—

(a) required to meet the income tax or,as the case may be, corporationtax liability of the subcontractor,40or

(b) offset against other tax liabilities ofthe subcontractor under subsec-tion (3),

may, subject to section 865, be repaid to the45subcontractor.

(5) No repayment of deducted tax shall bemade, except in accordance with subsection(4).

(6) No amount of deducted tax shall be50treated as a payment on account, set off orrefunded more than once and no amount ofdeducted tax set off under subsection (3) or

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refunded under subsection (4) shall betreated 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’’, 5

(ad) in section 530R by substituting the following for subsec-tion (2):

‘‘(2) Except where the principal concerned makes aseparate payment to each member of the gang or group,a person authorised by the gang or group, or in the case 10of a partnership, the precedent partner, shall, in respectof tax deducted from relevant payments to the gang orgroup, give to the Revenue Commissioners—

(a) the name, address and tax reference number ofevery person in the gang or group, and 15

(b) details of the proportion of the tax deducted towhich each person, named by virtue of thisprovision, is entitled.’’,

(ae) in section 530S by substituting the following for subsec-tion (1): 20

‘‘(1) Before giving a notification to the Revenue Com-missioners under section 530C, a principal shall obtainfrom the subcontractor concerned a statement setting outappropriate details of the work giving rise to the pay-ment, and the cost of the work, and such statement shall 25bear the subcontractor’s name, business address and taxreference number.’’,

(af) in section 530S(4) by substituting the following for para-graph (b):

‘‘(b) Each subcontractor shall keep and maintain— 30

(i) a copy of each deduction authorisationsupplied by a principal under section530F(4)(a), or

(ii) a copy of any details given under section530F(4)(b).’’, 35

(ag) in section 530V by substituting the following for subsec-tion (1):

‘‘(1) Regulations made under this Chapter may con-tain such incidental, supplemental or consequential pro-visions as appear to the Revenue Commissioners to be 40necessary or expedient—

(a) to enable persons to fulfil their obligations underthis Chapter or under regulations made underthis Chapter, or

(b) to give effect to the proper implementation and 45efficient operation of the provisions of thisChapter or regulations made under thisChapter.

(1A) Regulations made under this Chapter shall belaid before Dáil Éireann as soon as may beafter they are made and, if a resolution annul-ling those regulations is passed by DáilÉireann within the next 21 days on which Dáil5Éireann has sat after the regulations are laidbefore it, the regulations shall be annulledaccordingly, but without prejudice to the val-idity of anything previously done under them.

(1B) (a) Anything required to be done by a principal10under this Chapter or under regulationsmade under this Chapter may be done byanother person acting under the authorityof the principal.

(b) Where anything is done by such other person15under the authority of the principal, thisChapter shall apply as if it had been doneby the principal.

(c) Anything purporting to have been done byor on behalf of a principal shall for the pur-20poses of this Chapter be deemed to havebeen done by the principal or by the princi-pal’s authority, as the case may be, unlessthe contrary is proved.’’,

and25

(ah) in section 530V by substituting the following for subsec-tion (3):

‘‘(3) Anything to be done by or under this Chapter bythe Revenue Commissioners, other than the making ofregulations, may be done by any Revenue officer or may,30if appropriate, be done through such electronic systemsas the Revenue Commissioners may put in place for thetime being for any such purpose.’’.

(2) This section comes into operation on and from the passing ofthis Act.35

22.—Section 482 of the Principal Act is amended in subsection (5)by inserting the following after paragraph (b):

‘‘(ba) Where qualifying expenditure is incurred after8 February 2012, the 40 days referred to in paragraph(b)(ii)(I)(B) shall, in relation to the chargeable40period in which expenditure is incurred, include thedays which comprise National Heritage Week, asdesignated for each year by the Heritage Council, tothe extent that it falls within the period referred toin paragraph (b)(ii)(I).’’.45

23.—The Principal Act is amended in section 481—

(a) in subsection (1) by inserting the following definition afterthe definition of ‘‘authorised officer’’:

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Amendment ofsection 482 (relieffor expenditure onsignificant buildingsand gardens) ofPrincipal Act.

Amendment ofsection 481 (relieffor investment infilms) of PrincipalAct.

76

‘‘ ‘director’ shall be construed in accordance withsection 433(4);’’,

(b) in subsection (1), in the definition of ‘‘relevant investment’’,by substituting ‘‘qualifying company,’’ for ‘‘qualifyingcompany.’’, 5

(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 ‘‘subsection (2CA)’’ 10for ‘‘subsection (2C)(ba)’’,

(e) in subsection (2C)(b) by substituting ‘‘subject to subsection(2CA),’’ for ‘‘subject to paragraph (ba),’’,

(f) in subsection (2C) by deleting paragraph (ba),

(g) in subsection (2C) by deleting ‘‘and’’ before paragraph (d), 15

(h) in subsection (2C)(d) by substituting ‘‘fulfilled,’’ for‘‘fulfilled.’’,

(i) in subsection (2C) by inserting the following after para-graph (d):

‘‘and 20

(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— 25

is paid to an allowable investor company or quali-fying individual, as the case may be, before theRevenue Commissioners have notified the com-pany in writing that a compliance report, asreferred to in paragraph (d)(iii), has been 30received by them.’’,

(j) by inserting the following after subsection (2C):

‘‘(2CA) (a) Paragraph (b) of subsection (2C) shall notapply to financial arrangements inrelation to a transaction, or series of 35transactions, where such arrangementshave been approved by the RevenueCommissioners.

(b) The Revenue Commissioners shall notapprove financial arrangements, to 40which paragraph (b) of subsection (2C)would, but for this subsection, applyunless:

(i) the arrangements relate to either orboth— 45

(I) an investment made in a qualify-ing film, and

(II) the filming of part of a film in aterritory other than a territoryreferred to in clause (I) or (II)5of subsection (2C)(b)(i),

(ii) a request for approval is made by thequalifying company to the RevenueCommissioners before sucharrangements are effected,10

(iii) the qualifying company demon-strates to the satisfaction of theRevenue Commissioners that it canprovide, if requested, sufficientrecords to enable the Revenue15Commissioners to verify—

(I) in the case of an investment, theamount of the investment madein the qualifying company andthe person who made the20investment, and

(II) in the case of filming in a terri-tory, the amount of each itemof expenditure on the pro-duction of the qualifying film25expended in the territory,whether expended by the quali-fying company or by any otherperson,

and30

(iv) they are satisfied that it is appropri-ate to grant such approval.

(c) In considering whether to grant an approvalunder this subsection in relation to finan-cial arrangements, the Revenue Com-35missioners may seek any informationthey consider appropriate in relation tothe arrangements or in relation to anyperson who is, directly or indirectly, aparty to the arrangements.40

(d) Where the Revenue Commissioners haveapproved financial arrangements inaccordance with this subsection, noamount of money expended, eitherdirectly or indirectly, as part of the45arrangements may be regarded, for thepurposes of subsection (2A)(g)(iv), as anamount of money expended on eitherthe employment of eligible individuals oron the provision of goods, services and50facilities as referred to in thatsubsection.’’,

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Amendment ofsection 486B (relieffor investment inrenewable energygeneration) ofPrincipal Act.

Income tax relieffor investment incorporate trades —employment andinvestmentincentive and seedcapital scheme.

78

(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 as 5referred 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.’’. 10

24.—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’’.

25.—(1) Part 16 of the Principal Act (as amended by section33(1)(a) of the Finance Act 2011 (No. 6 of 2011)) is amended in 15section 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 princi-pally carried on in the State, or’’, 20

(b) in paragraph (a)(ii) by substituting the following for clause(II):

‘‘(II) both the holding of such shares or securities orthe making of such loans and the carrying onof relevant trading activities where relevant 25trading activities are carried on from a fixedplace of business in the State.’’,

and

(c) by deleting paragraph (c).

(2) Section 33 of the Finance Act 2011 is amended by substituting 30the following for subsection (2):

‘‘(2) (a) Subject to paragraphs (b) and (c), this section haseffect in respect of shares issued on or after 25 Nov-ember 2011.

(b) This section does not have effect in respect of shares 35issued 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.

(c) This section does not have effect in respect of shares 40issued 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 investmentfund, the fund acquiring the shares, 45

elects by notice in writing to the Revenue Com-missioners on or before 31 December 2011 that, forall the purposes of Part 16 of the Principal Act inconnection with those shares, the Principal Act haseffect as if this section had not been enacted.’’.5

26.—(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 byinserting after that clause—10

‘‘(IB) expenditure on research and development shallnot include—

(A) except as provided for in subparagraphs(vii) and (viii) of subsection (1)(b), anyamount paid to another person to carry on15research and development activities, or

(B) expenditure incurred by a company in themanagement or control of research anddevelopment activities where such activitiesare carried on by another person,20

and ‘in the carrying on by it of research anddevelopment activities’ shall be construedaccordingly, and’’,

(b) in section 766(1)(a) by inserting the following after thedefinition of ‘‘group expenditure on research and25development’’:

‘‘ ‘key employee’ has the meaning ascribed to it bysection 472D;’’,

(c) in section 766(1)(a) in the definition of ‘‘qualifying groupexpenditure on research and development’’ by deleting30‘‘means an amount equal to the excess of the amount ofgroup expenditure on research and development inrelation to a relevant period over the threshold amountin relation to the relevant period;’’ and substituting thefollowing:35

‘‘shall be determined by the following formula—

A + B

where—

A is so much of the amount of group expenditure onresearch and development in relation to a relevant40period as does not exceed €100,000, and

B is the amount equal to the excess of the amount ofgroup expenditure on research and development inrelation to the relevant period over the thresholdamount in relation to the relevant period,45

but the amount of qualifying group expenditure onresearch and development in relation to a relevant period

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Amendment of Part29 (patents,scientific andcertain otherresearch, know-howand certaintraining) ofPrincipal Act.

80

shall not exceed the amount of group expenditure onresearch and development in relation to that relevantperiod;’’,

(d) in section 766(1)(a) by inserting the following after thedefinition of ‘‘research and development centre’’: 5

‘‘ ‘specified amount’ means an amount—

(i) paid by the Revenue Commissioners inaccordance with subsection (4B) of thissection or section 766A(4B), as the casemay be, or 10

(ii) surrendered in accordance with subsec-tion (2A),

and a claim in respect of a specified amount shall be con-strued accordingly;’’,

(e) in section 766(1)(b)(v) by deleting ‘‘by or through the State, 15any board established by statute, any public or local auth-ority or any other agency of the State;’’ and substitutingthe following:

‘‘by or through—

(I) the State or another relevant Member 20State, or

(II) any board established by statute, any publicor local authority or any other agency ofthe State or another relevant MemberState;’’, 25

(f) in section 766(1)(b)(vii) by deleting ‘‘5 per cent of thatexpenditure 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, 30shall, to the extent that it does not exceed the expendi-ture 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;’’,

(g) in section 766(1)(b) by substituting the following for sub- 35paragraph (viii):

‘‘(viii) where in any period a company—

(I) incurs expenditure on research anddevelopment, and

(II) pays a sum (not being a sum referred to in 40clause (II) of subparagraph (vii)) to a per-son, other than to a person who is connec-ted (within the meaning of section 10) withthe company, in order for that person tocarry on research and development activi- 45ties, and notifies that person in writing thatthe payment is a payment to which thisclause applies and that the person may notmake a claim under this section in respect

of such research and developmentactivities,

then, so much of the sum so paid as does notexceed the greater of 10 per cent of that expendi-ture or €100,000, shall, to the extent that it does5not exceed the expenditure referred to in clause(I), be treated as if it were expenditure incurredby the company in the carrying on by it ofresearch and development activities and expendi-ture incurred by that other person in connection10with the activities referred to in clause (II)shall not be expenditure on research anddevelopment;’’,

(h) in section 766(2) by deleting ‘‘Where’’ and substituting‘‘Subject to subsection (2A) where’’,15

(i) by inserting the following after section 766(2):

‘‘(2A) (a) Subject to paragraph (c), where as respectsany accounting period a company is entitledto reduce the corporation tax of thataccounting period by an amount, in accord-20ance with subsection (2), the company mayinstead on making a claim in that behalf tothe appropriate inspector surrender all orpart of that amount to one or such numberof key employees as the company may spec-25ify but the aggregate of such amounts,attributable to such employees, may notexceed the amount so surrendered.

(b) The part of that amount that may be surren-dered by the company may not exceed the30corporation tax of the accounting period,which would be chargeable, if no claimcould be made in accordance with subsec-tion (2).

(c) A company may not make a claim under35this subsection where, at the time of makingsuch a claim the company has a liability(within the meaning of section 960H) inrespect of the corporation tax of theaccounting period referred to in subsection40(2) or a previous accounting period.

(d) A claim in accordance with this subsectionshall be made in such form as the RevenueCommissioners may prescribe and the com-pany shall notify the key employee, in writ-45ing, of any amount surrendered to thatemployee.

(2B) Where as respects any accounting period a com-pany makes a claim under subsections (2) and (2A) andin accordance with that claim—50

(a) the corporation tax of an accounting period isreduced and an amount is surrendered, and

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(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 bythis section,

then, the amount which is not so authorised shall be first 5attributable to a claim under subsection (2) in priority toa claim under subsection (2A).

(2C) Where in respect of an accounting period, a com-pany makes a claim under subsection (2A) and it is sub-sequently found that the amount surrendered in accord- 10ance 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 sur-rendered, which is authorised by this section, shall be anamount (hereafter in this section referred to as the 15‘relevant authorised amount’) determined by theformula—

A × BC

where—

A is the portion of the initial amount attributable tothat key employee in accordance with the claim 20under subsection (2A),

B is the aggregate amount that may be surrenderedby the company for that accounting period as isauthorised by this section, and

C is the initial amount, 25

and the company shall notify the key employee in writingof the relevant authorised amount.’’,

(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 a 30claim in accordance with this section ceases to carry on atrade which includes the carrying on by it of research anddevelopment activities and another company (in thissection and section 766A referred to as the ‘successor’)commences to carry on the trade and those research and 35development activities (the cessation and commencementreferred 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 group 40of companies within the meaning of section411(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 by 45the successor,

then the successor may, to the extent that the predecessorhas not used an amount to reduce the corporation tax of

an 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 forward any excess that the predecessor would havebeen entitled to carry forward in accordance with subsec-5tion (4).’’,

(k) by substituting the following for subsection 766(7B):

‘‘(7B) (a) Any amount payable by the Revenue Com-missioners to the company or another com-pany by virtue of subsection (4B) shall be10deemed to be an overpayment of corpor-ation tax, for the purposes only of section960H(2).

(b) Any claim in respect of a specified amountshall be deemed for the purposes of section151077E to be a claim in connection with acredit and, for the purposes of determiningan amount in accordance with section1077E(11) or 1077E(12), a reference to anamount of tax that would have been pay-20able for the relevant periods by the personconcerned shall be read as if it were a refer-ence to a specified amount.

(c) Where a company makes a claim in respectof a specified amount and it is subsequently25found that the claim is not as authorised bythis section or by section 766A, as the casemay be, then the company may be chargedto tax under Case IV of Schedule D for theaccounting period in respect of which the30payment was made or the amount surren-dered, as the case may be, in an amountequal to 4 times the aggregate of the pay-ment or amount surrendered, as the casemay be.35

(d) Where in accordance with paragraph (c) aninspector makes an assessment in respect ofa specified amount, the amount so chargedshall for the purposes of section 1080 bedeemed to be tax due and payable and shall40carry interest as determined in accordancewith subsection (2)(c) of section 1080 as ifa reference to the date when the taxbecame due and payable were a referenceto the date the amount was paid by the45Revenue Commissioners, or a reference tothe date the corporation tax of the com-pany for the accounting period in respectof which the amount was surrendered, waspayable, as the case may be.’’,50

(l) in section 766A(1)(a) by inserting the following after thedefinition of ‘‘specified relevant period’’:

‘‘ ‘specified time’ in relation to a building or structuremeans the period of 10 years commencing at the begin-ning of the accounting period in which the predecessor55

83

84

incurs relevant expenditure on that building orstructure;’’,

(m) in section 766A(1)(b)(i) by deleting ‘‘by the State;’’ andsubstituting the following:

‘‘by or through— 5

(I) the State or another relevant MemberState, or

(II) any board established by statute, any pub-lic or local authority or any other agencyof the State or of another relevant 10Member State;’’,

(n) in section 766A(3) by deleting ‘‘then the company’’ and sub-stituting ‘‘then, subject to subsection (3A), the com-pany’’, and

(o) by inserting the following after subsection 766A(3): 15

‘‘(3A) Where an event referred to in section 766(4C)occurs and—

(a) in connection with the event the predecessortransfers to the successor a building or struc-ture in respect of which— 20

(i) the predecessor had made a claim undersection 766A,

(ii) the transfer is a transfer to which section617 applies, and

(iii) at the time of the transfer either or both 25the specified relevant period and thespecified time had not expired,

(b) on, or at any time within 2 years after, the event,the trade and research and developmentactivities are not carried on otherwise than by 30the successor, and

(c) the building or structure in respect of whichrelevant expenditure was incurred by thepredecessor—

(i) in a case where the specified relevant 35period had not expired, would continueto be a qualifying building if a reference,in the definition of ‘qualifying building’ toactivities carried on by the company wereconstrued as a reference to activities car- 40ried on by the company and the suc-cessor, and

(ii) continues to be used by the successorthroughout the remainder of the ‘speci-fied time’ for the purposes of research 45and development activities,

then—

(I) subparagraphs (i) and (ii) of subsection (3)shall not apply in relation to the transferby the predecessor,

(II) the successor may, to the extent that thepredecessor has not used an amount to5reduce the corporation tax of an account-ing period in accordance with subsection(2) or made a claim under subsection(4A) or (4B) carry forward any excessthat the predecessor would have been10entitled to carry forward, in accordancewith subsection (4), and

(III) subsection (3) shall have effect as if a ref-erence to the company in subsection(3)(c) and thereafter in subsection (3)15were a reference to the successor.’’.

(2) (a) Paragraphs (f) and (g) shall apply to accounting periodsending on or after 1 January 2012.

(b) Except where otherwise provided this section applies toaccounting periods commencing on or after 1 January202012.

27.—(1) The Principal Act is amended in section 730F(1)—

(a) in paragraph (a) by substituting ‘‘33 per cent’’ for ‘‘30 percent’’, and

(b) in paragraph (b) by substituting ‘‘(S + 33) per cent’’ for25‘‘(S + 30) per cent’’.

(2) The Principal Act is amended in section 730J—

(a) in paragraph (a)(i)(I) by substituting ‘‘30 per cent’’ for‘‘27 per cent’’,

(b) in paragraph (a)(i)(II)(A) by substituting ‘‘(S + 33) per30cent’’ for ‘‘(S + 30) per cent’’,

(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’’.35

(3) The Principal Act is amended in section 730K(1)—

(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’’.40

(4) The Principal Act is amended in Chapter 1A of Part 27—

(a) in the formula in section 739D(5A) by substituting ‘‘(G x33)’’ for ‘‘(G x 30)’’, and

(b) in section 739E(1)—

85

Life assurancepolicies andinvestment funds:rates.

86

(i) in paragraph (a) by substituting ‘‘30 per cent’’ for ‘‘27per cent’’,

(ii) in paragraph (b) by substituting ‘‘33 per cent’’ for ‘‘30per cent’’, and

(iii) in paragraph (ba) by substituting ‘‘(S + 33) per cent’’ 5for ‘‘(S + 30) per cent’’.

(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’’,

(b) in section 747D(a)(i)(I)(B) by substituting ‘‘30 per cent’’ for 10‘‘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’’for ‘‘30 per cent’’, 15

(e) in section 747D(a)(ii)(I) by substituting ‘‘(H + 30) per cent’’for ‘‘(H + 27) per cent’’,

(f) in section 747E(1)(b)(i) by substituting ‘‘(S + 33) per cent’’for ‘‘(S + 30) per cent’’, and

(g) in section 747E(1)(b)(ii) by substituting ‘‘33 per cent’’ for 20‘‘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(within the meaning of Chapter 5 of Part 26 of the Princi-pal Act) on or after 1 January 2012. 25

(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-pal Act) on or after 1 January 2012.

(c) Subsection (3) applies and has effect as respects the dis- 30posal 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-pening of a chargeable event in relation to an investment 35undertaking (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 inrespect of a material interest in an offshore fund (within 40the meaning of Chapter 4 of Part 27 of the Principal Act)on or after 1 January 2012.

(f) Paragraphs (f) and (g) of subsection (5) apply and haveeffect as respects the disposal in whole or in part by aperson of a material interest in an offshore fund (within 45the meaning of Chapter 4 of Part 27 of the Principal Act)on or after 1 January 2012.

28.—Chapter 5 of Part 26 of the Principal Act is amended—

(a) in section 730D(2)(b)(vi) by substituting ‘‘any Court,’’ for‘‘any Court, or’’,

(b) in section 730D(2)(b) by inserting the following after sub-paragraph (vii):5

‘‘(viii) a pension scheme being an exempt approvedscheme within the meaning of section 774 ora trust scheme to which section 784 or 785applies, or

(ix) an approved retirement fund within the mean-10ing of section 784A or an approved minimumretirement fund within the meaning ofsection 784C,’’,

(c) in section 730E(3)(e)(vi) by substituting ‘‘any Court,’’ for‘‘any Court, or’’, and15

(d) in section 730E(3)(e) by inserting the following after sub-paragraph (vii):

‘‘(viii) a pension scheme being an exempt approvedscheme within the meaning of section 774 ora trust scheme to which section 784 or 78520applies, or

(ix) an approved retirement fund within themeaning of section 784A or an approvedminimum retirement fund within the meaningof section 784C,’’.25

29.—(1) Chapter 1 of Part 27 of the Principal Act is amended—

(a) in section 738(2) by substituting the following for para-graph (b):

‘‘(b) (i) Subject to subparagraph (ii), as respects anundertaking for collective investment which is30a company, the corporation tax which ischargeable on its profits on which corporationtax falls finally to be borne for a chargeableperiod beginning on or after 8 February 2012shall, for the purposes of the Tax Acts, be such35tax, before it is reduced by any credit, reliefor other reduction under those Acts, com-puted as if the rate of corporation tax were 30per cent.

(ii) For the purposes of this paragraph, as respects40an undertaking for collective investmentwhich is a company, where an accountingperiod of the company begins before 8 Febru-ary 2012 and ends on or after that date, it shallbe divided into 2 parts, one beginning on the45date on which the accounting period beginsand ending on 7 February 2012, and the otherbeginning on 8 February 2012 and ending onthe date on which the accounting period ends,and both parts shall be treated as if they were50

87

Amendment ofChapter 5(policyholders —new basis) of Part26 of Principal Act.

Undertakings forcollectiveinvestment and unitholders.

Amendment ofsection 739D (gainarising on achargeable event)of Principal Act.

88

separate accounting periods of the companyand the corporation tax for the chargeableperiod ending on 7 February 2012 shall becomputed as if the rate of corporation taxwere 20 per cent.’’, 5

(b) in section 738(2)(d) by substituting the following for sub-paragraph (i):

‘‘(i) the income tax which is chargeable on the incomearising, and the capital gains tax which is chargeableon the chargeable gains accruing, in a year of assess- 10ment to the undertaking shall be the amount of suchtax, before it is reduced by any credit, relief or otherdeduction under any provision, other than underthis section, of the Tax Acts or the Capital GainsTax Acts, which is the rate of 30 per cent of the 15income arising, and the chargeable gains accruingto the undertaking, but, in relation to the year ofassessment commencing on 1 January 2012, pay-ments made and gains realised in the period from 1January 2012 to 7 February 2012 shall be chargeable 20to income tax or capital gains tax, as the case maybe, at the rate of 20 per cent, and’’,

(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- 25tuting ‘‘is 30’’ for ‘‘is the standard rate per cent for theyear of assessment in which the payment is made’’, and

(e) in section 739(4)(a)(i) by substituting ‘‘rate of 30 per cent’’for ‘‘standard rate of income tax’’.

(2) (a) Paragraphs (c) and (d) of subsection (1) apply as respects 30payments 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.

30.—Section 739D of the Principal Act is amended—

(a) in subsection (7B)(a) and (b) by substituting ‘‘subsection (7) 35or (9), as the case may be,’’ for ‘‘subsection (7)’’ in eachplace, and

(b) by inserting the following after subsection (8D):

‘‘(8E) (a) In this subsection—

‘relevant jurisdiction’ has the same mean- 40ing as in section 256F(1) of the Com-panies Act 1990;

‘scheme of migration’ means either ofthe following—

(i) a migrating company (within the 45meaning of section 256F of the Com-panies Act 1990) which holds anauthorisation from the Central Bank

of Ireland to carry on business in theState under Part XIII of that Act, andwhich authorisation has not beenrevoked, or

(ii) a unit trust which has migrated from5a relevant jurisdiction and whichholds an authorisation from the Cen-tral Bank of Ireland to carry on busi-ness in the State as an authorised unittrust scheme under the Unit Trusts10Act 1990 or as a unit trust within themeaning of the relevant Regulations,and which authorisation has notbeen revoked.

(b) Where, under a scheme of migration, a15company or a unit trust, as the case maybe, comes within the definition of ‘invest-ment undertaking’ in section 739B(1), thefollowing provisions apply—

(i) subject to subparagraph (iii), a gain20shall not be treated as arising to thatinvestment undertaking on the hap-pening of a chargeable event inrespect of a unit holder holding unitsin that investment undertaking at25the time of the scheme of migration,otherwise than in respect of a unitholder whose name is included in theschedule referred to in subparagraph(ii), where the investment undertak-30ing, within 30 days of the scheme ofmigration taking place, forwards tothe inspector or other officer of theRevenue Commissioners nominatedunder subsection (7B)(d), a declar-35ation of a kind referred to in subpar-agraph (ii),

(ii) the declaration referred to in subpar-agraph (i) is a declaration in writingmade and signed by the investment40undertaking which—

(I) declares to the best of the invest-ment undertaking’s knowledgeand belief that at the time of thescheme of migration no units in45that investment undertakingwere held by a person who wasresident in the State, other thanthe persons whose names andaddresses are set out in the50schedule to the declaration, and

(II) contains a schedule which setsout the name and address ofeach person who, at the time ofthe scheme of migration, was55resident in the State,

89

Amendment ofsection 739G(taxation of unitholders ininvestmentundertakings) ofPrincipal Act.

Amalgamations ofinvestmentundertakings andoffshore funds.

90

and

(iii) a gain which, by virtue of subpara-graph (i), would not otherwise betreated as arising to that investmentundertaking on the happening of a 5chargeable event in respect of a unitholder shall nevertheless be treatedas so arising where, immediatelybefore the chargeable event, theinvestment undertaking is in pos- 10session of any information whichwould reasonably suggest that theunit holder is resident in the State.’’.

31.—Section 739G(2) of the Principal Act is amended by substitut-ing the following for paragraph (h): 15

‘‘(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-ment undertaking, 20

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 inthe State,’’. 25

32.—Part 27 of the Principal Act is amended—

(a) in Chapter 1A by inserting the following after section 739H:

‘‘Investment 739HA.—(1) In this section—undertakings: 30amalgamations

‘material interest’ shall be construed inwith offshoreaccordance with section 743;funds. 35

‘offshore fund’ has the meaning assigned toit by section 743;

‘offshore state’ has the same meaning as insection 747B(1);

‘scheme of amalgamation’ means an 40arrangement 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 in 45that offshore fund to each of the unitholders in the investment undertaking, inproportion to the value of the units held byeach unit holder, and as a result of whichthe value of those units becomes negligible. 50

(2) The cancellation of units in an invest-ment undertaking arising from an exchangein relation to a scheme of amalgamationshall not be a chargeable event and the

amount invested by a unit holder for, andthe date of, the acquisition of a materialinterest in an offshore fund of an offshorestate under that scheme shall for the pur-poses of Chapter 4 be the amount invested5by the unit holder for, and the date of, theacquisition of those units in the investmentundertaking.’’,

and

(b) in Chapter 4 by inserting the following after section 747F:10

‘‘Offshore 747FA.—(1) In this section—funds:amalgamations

‘investment undertaking’ has the same15 with investmentmeaning as in section 739B(1);undertakings.

‘scheme of amalgamation’ means anarrangement whereby the assets of an off-20shore fund are transferred to an investmentundertaking 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 the25value of that interest, and as a result ofwhich the value of that interest becomesnegligible.

(2) Where, in connection with a schemeof amalgamation, a person disposes of a30material interest in an offshore fund andreceives, 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 in35the investment undertaking under thatscheme shall for the purposes of Chapter1A be treated as acquired at the same timeand at the same cost as the interest in theoffshore fund.’’.40

33.—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—45

‘umbrella scheme’ means an offshore fund—

(i) which is divided into a number ofsub-funds, and

(ii) in which each person who has amaterial interest in a sub-fund is50entitled to exchange the whole orpart of such interest for an interestin another sub-fund of the offshorefund.

91

Amendment ofsection 747E(disposal of aninterest in offshorefunds) of PrincipalAct.

Scheme ofmigration andamalgamation.

Amendment of Part8 (annual payments,charges andinterest) ofPrincipal Act.

92

(b) A disposal under subsection (1) does notinclude any exchange by a person whohas a material interest in a sub-fund ofan offshore fund which is an umbrellascheme, effected by way of a bargain 5made at arm’s length by that offshorefund, of the whole or part of such interestfor an interest in another sub-fund of thatoffshore fund.

(c) Any exchange referred to in paragraph (b) 10shall not be regarded as a disposal by aperson of a material interest in an off-shore fund which is an umbrellascheme.’’.

34.—Section 739D of the Principal Act is amended in subsection 15(8D)—

(a) in paragraph (a) by substituting the following for the defini-tion of ‘‘scheme of migration and amalgamation’’:

‘‘ ‘scheme of migration and amalgamation’ means anarrangement whereby the assets of an offshore fund 20are transferred to an investment undertaking inexchange for the issue by the investment undertak-ing of units—

(i) to each of the persons who have an interestin the offshore fund, in proportion to the 25value of that interest, and as a result ofwhich the value of that interest becomesnegligible, or

(ii) to that offshore fund.’’,

(b) in paragraph (b) by substituting ‘‘Subject to paragraph (d), 30a gain shall not be treated as arising’’ for ‘‘A gain shallnot be treated as arising’’,

(c) in paragraph (b)(ii) by substituting ‘‘inspector or otherofficer of the Revenue Commissioners nominated undersubsection (7B)(d)’’ for ‘‘Collector-General’’, and 35

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

‘‘(d) A gain which, by virtue of paragraph (b), wouldnot otherwise be treated as arising to aninvestment undertaking on the happening ofa chargeable event in respect of a unit holder 40shall nevertheless be treated as so arisingwhere, immediately before the chargeableevent, the investment undertaking is in pos-session of any information which wouldreasonably suggest that the unit holder is resi- 45dent in the State.’’.

35.—(1) Part 8 of the Principal Act is amended—

(a) in section 256(1) in the definition of appropriate tax—

(i) in paragraph (a) by substituting ‘‘30 per cent’’ for ‘‘27per cent’’, 50

(ii) in paragraph (b) by substituting ‘‘30 per cent’’ for ‘‘27per cent’’, and

(iii) in paragraph (c) by substituting ‘‘33 per cent’’ for ‘‘30per cent’’,

(b) in section 256(1) by inserting the following after the defini-5tion of ‘‘pension scheme’’:

‘‘ ‘Personal Retirement Savings Account’ has thesame meaning as in section 787A;’’,

(c) in section 256(1) by substituting the following for paragraph(k) of the definition of ‘‘relevant deposit’’—10

‘‘(k) which is made by a PRSA provider and which isheld for the purposes of a Personal Retire-ment Savings Account, where the PRSA pro-vider has provided the relevant deposit takerwith the number assigned to that provider by15the Revenue Commissioners;’’,

(d) in section 267B—

(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’’ for20‘‘27 per cent’’,

(e) in section 267F by deleting subsection (2),

(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 the25definition of ‘‘specified interest’’—

‘‘ ‘foreign deposit interest’ means interest arising ina foreign territory which would be interest payablein respect of a relevant deposit within the meaningof section 256(1) if—30

(a) paragraphs (c), (d) and (g) of the definitionof ‘relevant deposit’ in section 256(1)were deleted, and

(b) there were included in the definition of‘relevant deposit taker’ in section35256(1), bodies—

(i) established in accordance with thelaw of a foreign territory, and

(ii) authorised under the laws of that for-eign territory to accept deposits of40money;

‘foreign territory’ means a territory other than aMember State of the European Communities;’’,

and

93

Amendment of Part8A (specifiedfinancialtransactions) ofPrincipal Act.

94

(h) in section 267M by substituting the following for subsec-tion (2)—

‘‘(2) (a) Notwithstanding section 15 and subject toparagraph (b), where the taxable income ofan individual includes— 5

(i) specified interest, the part of taxableincome, equal to that specified interest,shall be chargeable to tax at the ratespecified in paragraph (b) of the defini-tion of ‘appropriate tax’ in section 10256(1), or

(ii) foreign deposit interest, so much of thepart of taxable income, equal to that for-eign deposit interest, as would otherwisebe chargeable to tax at the standard rate, 15shall 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 20of 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 25the 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 30described in the Table to section 15 as thehigher 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 or 35after 1 January 2012.

(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, which 40is received on or after 8 February 2012.

36.——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 45consists wholly or mainly of either or both of thefollowing—

(a) income from the leasing of machinery or plant,and

(b) income from the carrying on of specified finan- 50cial transactions;’’,

and

(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, and5

(b) within the charge to tax,

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—10

(a) shall be made in a form approved by the Rev-enue Commissioners and containing such par-ticulars relating to the transaction concerned,and the parties to that transaction, as may bespecified in that form, and15

(b) may be made either in respect of an individualtransaction or in respect of a series of trans-actions of a similar nature.

(3) Where an election is made in accordance withthis section—20

(a) this Part applies to that transaction or series oftransactions, and

(b) the party making the election shall notify anyother person who is a party to a specified fin-ancial transaction, that the transaction is a25specified financial transaction.’’.


(a) in section 33(1) by deleting ‘‘shall be charged by the Com-missioners designated for that purpose by the IncomeTax Acts, and’’,30

(b) in section 64(5) by substituting the following for paragraph(c):

‘‘(c) if in paragraph 1A of Part 1 of Schedule 2,clauses (1) and (2) of the definition of‘chargeable person’ were deleted.’’,35

(c) by deleting section 853,

(d) in Part 1 of Schedule 2 by inserting the following after para-graph 1:

‘‘1A. In this Schedule—

‘chargeable person’ means any of the following:40

(a) a person who is entrusted with the payment ofany dividends which are payable to any

95

Withholding taxrelating to certaindividends andinterest.

96

persons in the State out of any publicrevenue;

(b) a person in the State who is entrusted with thepayment of any dividends to which Chapter 2of Part 4 applies; 5

(c) a banker or other person in the State whoobtains payment of any dividends in such cir-cumstances that the dividends are chargeableto income tax under Schedule C or, in thecase of dividends to which Chapter 2 of Part 104 applies, under Schedule D;

(d) a banker in the State who sells or otherwiserealises coupons in such manner that the pro-ceeds of the sale or realisation are chargeableto income tax under Schedule C or, in the 15case of dividends to which Chapter 2 of Part4 applies, under Schedule D;

(e) a dealer in coupons in the State who purchasescoupons in such manner that the price paidon the purchase is chargeable to income tax 20under Schedule C or, in the case of dividendsto which Chapter 2 of Part 4 applies, underSchedule D;

‘specified dividend income’ means—

(a) the amount of dividends which are payable to 25any person in the State out of any publicrevenue,

(b) the amount of dividends to which Chapter 2 ofPart 4 applies,

(c) the amount of dividends received by a charge- 30able person in the State in such circumstancesthat the dividends are chargeable to incometax under Schedule C or, in the case of divid-ends to which Chapter 2 of Part 4 applies,under Schedule D, 35

(d) the proceeds of sale or realisation of couponswhere those proceeds are chargeable toincome tax under Schedule C or, in the caseof dividends to which Chapter 2 of Part 4applies, under Schedule D, or 40

(e) the price paid on purchase of coupons wheresuch price paid on purchase is chargeable toincome tax under Schedule C or, in the caseof dividends to which Chapter 2 of Part 4applies, under Schedule D.’’, 45

(e) by deleting Parts 2 and 3 of Schedule 2,

(f) by substituting the following for Part 4 of Schedule 2—

‘‘PART 4

Public revenue dividends, dividends to which Chapter 2of Part 4 applies, proceeds of coupons and price paid on

purchase of coupons

14. (1) Subject to Chapter 2 of Part 3, every charge-5able person shall, on making a payment of specified divi-dend income, deduct and retain a sum representing theamount of the income tax due on that income and paythat income tax on behalf of the person entitled to thatincome.10

(2) The payment of the income tax by the chargeableperson shall be deemed to be a payment of the incometax by the persons entitled to the specified dividendincome and shall be allowed by those persons on thereceipt of the residue of the dividends.15

15. (1) Every chargeable person who makes a pay-ment of specified dividend income shall make for eachyear of assessment within 20 days from the end of theyear of assessment, a return to the Collector-General ofthat specified dividend income and of the income tax in20relation to that specified dividend income.

(2) The income tax in relation to payments of specifieddividend income which is required to be included in areturn shall—

(a) be due at the time by which the return is to be25made, and

(b) be paid by the chargeable person to the Collec-tor-General,

and the income tax so due shall be payable by the charge-able person without the making of an assessment; but30income tax which has become so due may be assessed onthe chargeable person (whether or not it has been paidwhen the assessment is made) if that tax or any part of itis not paid on or before the due date.

(3) A return due under this Schedule shall be in a form35prescribed by the Revenue Commissioners and shallinclude a declaration to the effect that the return is cor-rect and complete.

16. (1) Where it appears to the inspector that there isany amount of income tax in relation to a payment of40specified dividend income which should have been butwas not included in a return or where the inspector isdissatisfied with any return, the inspector may make anassessment on the chargeable person to the best of his orher judgement. Any amount of income tax in relation to45a payment of specified dividend income due under anassessment made by virtue of this subparagraph shall betreated for the purpose of interest on unpaid tax as hav-ing been payable at the time when it would have beenpayable if a correct return had been made.50

(2) Any income tax assessed on a chargeable personunder this Schedule shall be due within one month after

97

98

the issue of the notice of assessment (unless that tax isdue earlier under paragraph 15) subject to any appealagainst the assessment, but no such appeal shall affect thedate when any amount is due under paragraph 15.

(3) On the determination of an appeal against an 5assessment under this Chapter, any income tax overpaidshall be repaid.

17. Where any item has been incorrectly included in areturn as income tax, the inspector may make such assess-ments, adjustments or set-offs as may in his or her judge- 10ment be required for securing that the resulting liabilitiesto tax, including interest on unpaid tax, whether of thechargeable person or any other person, are in so far aspossible the same as they would have been if the itemhad not been so included. 15

18. (1) A chargeable person shall keep records to dis-tinguish the separate accounts of each of the personsentitled to receive specified dividend income and suchrecords shall include—

(a) the name and address of each such person, 20

(b) particulars of the amounts payable, and

(c) in the case of amounts payable out of any publicrevenue, particulars of the public revenue outof which each separate amount is payable.

(2) Records kept by a chargeable person in accordance 25with subparagraph (1) shall—

(a) be kept and retained by the chargeable personfor a period of 6 years from the day on whichthe payment was made, and

(b) on being required by notice in writing given to 30the chargeable person by an inspector, bemade available to the inspector within thetime specified in the notice.

19. The provisions of section 898N shall apply with anynecessary modifications as respects powers of an author- 35ised officer as if a reference in that section to—

(a) books and records were a reference to books andrecords kept for the purposes of thisSchedule,

(b) an authorised officer in that section were a refer- 40ence to a Revenue officer as defined insection 898B, and

(c) a reference in that section to a paying agent werea reference to a chargeable person.

20. The provisions of the Income Tax Acts relating 45to—

(a) assessments to income tax,

(b) appeals against such assessments (including therehearing of appeals and the statement of acase for the opinion of the High Court), and

(c) the collection and recovery of income tax,

shall, in so far as they are applicable, apply to the assess-5ment, collection and recovery of income tax due underthis Schedule.

21. (1) Any amount of income tax payable in accord-ance with this Schedule shall, without the making of anassessment, carry interest from the date when the amount10becomes due and payable until payment for any day orpart of a day during which the amount remains unpaid,at a rate of 0.0274 per cent.

(2) Subsections (3) to (5) of section 1080 shall apply inrelation to interest payable under subparagraph (1) as15they apply in relation to interest payable under section1080.

(3) In its application to any income tax charged by anyassessment made in accordance with this Schedule,section 1080 shall apply as if subsection (2)(b) of that20section were deleted.

22. Where—

(a) income tax in respect of the proceeds of the saleor realisation of any coupon or in respect ofthe price paid on the purchase of any coupon25has been accounted for under this Part by anybanker or any dealer in coupons, and

(b) the Revenue Commissioners are satisfied thatthe dividends payable on the coupons inrelation to which such proceeds or such price30arises have been subsequently paid in suchmanner that income tax has been deductedfrom such dividends under any of the pro-visions of this Schedule,

then the income tax so deducted shall be repaid.’’,35

and

(g) in Part 5 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 different40provisions.

38.—(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—45

99

Amendment ofsection 198 (certaininterest not to bechargeable) ofPrincipal Act.

Amendment ofsection 80A(taxation of certainshort-term leasesplant andmachinery) ofPrincipal Act.

Amendment ofsection 110(securitisation) ofPrincipal Act.

100

(I) if the person is not a resident of the State and isregarded as being a resident of a relevant terri-tory for the purposes of this subsection, or

(II) the person is a company controlled in accordancewith section 172D(3)(b)(ii), or a company the 5principal class of shares of which are shares towhich section 172D(3)(b)(iii) applies,

and the interest is interest to which section 64(2)applies, an interest payment to which section 246Aapplies or interest paid in respect of an asset covered 10security within the meaning of section 3 of the AssetCovered Securities Act 2001,’’.

(2) This section shall apply to interest paid on or after the passingof this Act.

39.—(1) Section 80A of the Principal Act is amended in subsec- 15tion (1), in the definition of ‘‘specified assets’’, by substituting ‘‘assetsthe 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. 20

40.—(1) Section 110 of the Principal Act is amended in subsection(1) in the definition of ‘‘carbon offsets’’—

(a) in paragraph (b) by substituting ‘‘reporting,’’ for‘‘reporting, or’’,

(b) by inserting the following after paragraph (b)— 25

‘‘(ba) a forest carbon offset issued pursuant to theUnited Nations Reduced Emissions fromDeforestation and Forest Degradation pro-gramme, or’’,

and 30

(c) by substituting the following for paragraph (c)—

‘‘(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), 35in paragraph (f) of the definition of ‘‘qualifying company’’, byinserting ‘‘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) 40by substituting the following for paragraph (b)(i):

‘‘(i) a person who is resident in the State or, if not so resi-dent, is otherwise within the charge to corporationtax in the State in respect of that interest or otherdistribution, or’’. 45

41.—(1) The Principal Act is amended by inserting the followingafter section 452—


‘additional tax’, in relation to a territory in respect of a qualify-ing company for an accounting period, means the amount deter-5mined by the formula—

A × B/100

where—

A is the specified amount for that territory in respect ofthe qualifying company for the accounting period, and10

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 theamount determined by the formula—

C × D/E15

where—

C is the specified amount for that territory in respect ofthe qualifying company for the accounting period,

D is the specified tax in relation to such specifiedamount, and20

E is the additional tax in relation to that specified amount;

‘foreign tax in respect of a qualifying company for an account-ing period’ means, in relation to a company carrying on busi-ness in a territory, the amount determined by the formula—

F × G/10025

where—

F is so much of the specified amount for the territory inrespect of the qualifying company for the accountingperiod as is payable to the company carrying on busi-ness, and30

G is the rate per cent of tax in the territory which ischargeable on—

(a) interest received in the territory by a companyfrom sources outside the territory, or

(b) where the amount of interest payable to the35company carrying on business is taken intoaccount in computing business profits of thatcompany, business profits;

‘interest’ means interest other than—

(a) yearly interest, and40

101

Application ofsection 130 ofPrincipal Act tocertain non-yearlyinterest.

Income tax onpayments by non-resident companies.

102

(b) interest to which subsection (2B) of section 130, sub-section (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 a 5trade carried on in the State which includes thelending of money, and

(b) for which any interest payable in respect of money soadvanced is taken into account in computing theincome of that trade of the company; 10

‘specified amount’, in relation to a territory in respect of aqualifying company for an accounting period, means theamount of specified interest that is payable for that accountingperiod by the qualifying company to a company or more thanone company carrying on a business in the territory where the 15interest is taken into account in that territory in computing theincome, profits or gains of that business;

‘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 20apart from this section, would be treated as a distribution byvirtue only of section 130(2)(d)(iv);

‘specified tax’, in relation to a specified amount in respect of aqualifying company for an accounting period, means thelesser of— 25

(a) the additional tax in relation to that specifiedamount, and

(b) the aggregate amount of foreign tax in respect of thequalifying company for the accounting period, inrelation to companies carrying on business in the 30territory to which the specified amount relates;

‘territory’ means a territory other than a relevant territorywithin 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 35an accounting period.’’.

(2) This section applies in respect of accounting periods commen-cing on or after 1 January 2012.

42.—(1) Section 238 of the Principal Act is amended in subsection(6) by deleting ‘‘resident in the State’’. 40

(2) Section 241 of the Principal Act is amended in subsection (2)—

(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)’’, 45

(c) by deleting ‘‘and’’ before paragraph (b), and

(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

(c) income tax in respect of which a return is to be5made under paragraph (a) shall, for the pur-poses of the charge, assessment, collectionand recovery from the company making thepayments of that tax and of any interest orpenalties on that tax, be treated as if it were10corporation tax chargeable for the accountingperiod for which the return is required underparagraph (a).’’.


(a) by inserting the following after section 81B:15

‘‘Emissions 81C.—(1) In this section—allowances.

‘emissions allowance’ has the same meaningas in section 540A;

‘profit and loss account’, in relation to an20accounting period of a company, has themeaning assigned to it by generally acceptedaccounting practice and includes an incomeand expenditure account where a companyprepares accounts in accordance with inter-25national accounting standards.

(2) Notwithstanding anything in section81, any amount, computed in accordancewith generally accepted accounting practice,charged to the profit and loss account of a30company, for the period of account which isthe same as the accounting period, in respectof expenditure, for the purposes of a tradecarried on by the company, on the purchaseof an emissions allowance shall be allowed35to be deducted as expenses in computing theamount of the profits or gains of the com-pany to be charged to tax under Case I ofSchedule D for the accounting period.

(3) Subject to section 540A, where a com-40pany disposes of an emissions allowancewhich it purchased for the purposes of atrade carried on by it, the consideration forsuch disposal shall be treated as a tradingreceipt of the trade.’’,45

and

(b) by inserting the following after section 540:

‘‘Disposal of 540A.—(1) In this section—certainemissions50

‘Agency’ means the Environmental Protec-allowances.tion Agency, being a competent authority

103

Emissionsallowances.

104

designated under Article 18 of the Directive;

‘aircraft operator’ has the same meaning asin Article 3 of the Directive;

‘Directive’ means Directive 2003/87/EC ofthe European Parliament and of the Council 5of 13 October 20031 (as amended by Direc-tive 2008/101/EC of the European Parlia-ment and of the Council of 19 November20082 and Directive 2009/29/EC of the Euro-pean Parliament and of the Council of 23 10April 20093);

‘emissions allowance’ means an allowancewithin the meaning of Article 3 of theDirective;

‘installation’ and ‘operator’ have the same 15meanings respectively as in Article 3 of theDirective;

‘permit’ means a greenhouse gas emissionspermit within the meaning of Article 3 ofthe Directive; 20

‘relevant person’ means—

(a) a person to whom a permit has beenissued in accordance withArticles 5 and 6 of the Directivein respect of an installation in 25relation to which the person is anoperator, or

(b) an aircraft operator;

‘relevant scheme’ means—

(a) a scheme of reconstruction or amal- 30gamation in relation to whichsection 615 applies,

(b) a transfer of an asset in relation towhich section 617 applies, or

(c) a transfer of a trade, or part of a 35trade, in relation to which section631 applies.

(2) (a) Subject to paragraphs (b), (c) and(d) and notwithstanding section110 or any other provision of the 40Tax Acts, where—

(i) a relevant person sells, trans-fers or otherwise disposes ofan emissions allowance (inthis section referred to as a 45‘relevant emissions allowance’)

1OJ No. L275, 25.10.2003, p.322OJ No. L8, 13.1.2009, p.33OJ No. L140, 5.6.2009, p.63

received or receivable freeof charge by that personfrom the Agency in accord-ance with the Directive, or

(ii) a company sells, transfers or5otherwise disposes of arelevant emissions allowancewhich the company acquiredunder, or as part of, arelevant scheme,10

such a sale, transfer or disposalshall constitute the disposal of anasset for the purposes of the CapitalGains Tax Acts and be treated asnot being a disposal of trading stock15for such purposes.

(b) References in paragraph (a) to thesale, transfer or disposal of arelevant emissions allowanceshall include references to the20sale, transfer or disposal of anyinterest or rights in or over suchan allowance.

(c) Paragraph (a) shall not apply to asurrender and cancellation of an25emissions allowance in accord-ance with Article 12 of theDirective.

(d) Paragraph (a)(ii) shall not applyto any sale, transfer or disposal of30a relevant emissions allowancewhere, at any time before thatevent, the relevant emissionsallowance was transferred fromone company to another com-35pany in circumstances where thetransfer was not made under, oras part of, a relevant scheme.

(3) For the purposes of the computationunder this Part of any gain accruing to a40relevant person or a company, as the casemay be, on a disposal referred to in subsec-tion (2)—

(a) no sum shall, notwithstandingsection 547 or 552, be allowed as45a deduction from the consider-ation for the disposal apart fromincidental costs to the person orcompany making the disposal,and50

(b) emissions allowances other thanrelevant emissions allowances

105

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.

106

shall be deemed to have been dis-posed of before relevant emis-sions allowances are disposed ofby the person or company.

(4) Section 596 shall not apply where a 5relevant emissions allowance acquired by aperson is appropriated as trading stock of thetrade carried on by the person.’’.

(2) Subsection (1)(b) applies to disposals, referred to in section540A (inserted by subsection (1)(b)) of the Principal Act, made on 10or after 8 February 2012.

Chapter 5

Corporation Tax

44.—Section 486C of the Principal Act is amended in subsection(2)(a) by substituting ‘‘at any time in the period beginning on 1 Janu- 15ary 2009 and ending on 31 December 2014’’ for ‘‘2009, 2010 or 2011’’.

45.—(1) Schedule 4 to the Principal Act is amended—

(a) by inserting the following after paragraph 39:

‘‘39A. The Food Safety Authority of Ireland.’’,

and 20

(b) by inserting the following after paragraph 92:

‘‘92A. The Sustainable Energy Authority of Ireland.’’.

(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 and 25have taken effect as on and from 1 May 2002.

46.—(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- 30graph (ii),

(b) in paragraph (a) by inserting the following after the defini-tion of ‘‘relevant Member State’’:

‘‘ ‘relevant territory’ means—

(i) a relevant Member State, 35

(ii) not being such a Member State, a territory withthe government of which arrangements hav-ing the force of law by virtue of section 826(1)have been made, or

(iii) not being a territory referred to in subparagraph(i) or (ii), a territory with the government ofwhich arrangements have been made whichon completion of the procedures set out insection 826(1) will have the force of law;’’,5

and

(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-10ary of another company, the other companyshall 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 trading15receipt of its trade,

(ii) any share capital which it owns indirectlyand which is owned directly by a com-pany for which a profit on the sale of theshares would be a trading receipt, or20

(iii) any share capital which it owns directly ina company, not being a company—

(I) which by virtue of the law of arelevant territory, is resident for thepurposes of tax in such a relevant25territory, or

(II) the principal class of shares of whichor, where the company is a 75 percent subsidiary of another company,the principal class of shares of that30other company, is substantially andregularly traded on a stock exchangein the State, on one or more thanone recognised stock exchange in arelevant territory or territories or on35such other stock exchange as may beapproved of by the Minister for Fin-ance for the purposes of Chapter 8Aof Part 6.

(d) References in this Chapter to a company which40is a surrendering company or a claimant com-pany 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.’’.45

(2) (a) This section applies as respects accounting periods endingon or after 1 January 2012.

(b) This section shall not have effect in relation to the deter-mination of the amount of loss available for surrender foran accounting period beginning before 1 January 201250and ending after that date to the extent that the loss or

107

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.

108

other amount is attributable to the part of the accountingperiod falling before that date.

(c) Any apportionment necessary for the purposes of givingeffect to paragraph (b) shall be made in accordance withsection 4(6). 5

47.—(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’’.

(2) This section applies as on and from the date of the passing of 10this Act.

48.—(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 anaccounting period by a company, any part of the foreign tax 15cannot, 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.

(5) Where, as respects an accounting period, a company is in 20receipt 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—

(a) reduce the income (in this subparagraph referred to as 25‘royalty income’) referable to any such payments byany unrelieved foreign tax, and

(b) allocate such reductions in such amounts and to suchof its royalty income for that accounting period as itsees fit. 30

(6) The aggregate amount of reductions under subparagraph(5) in an accounting period cannot exceed the aggregate of theunrelieved foreign tax in respect of all relevant royalties for thataccounting period.’’.

(2) This section applies as respects relevant royalties (within the 35meaning of paragraph 9DB(1)(a) of Schedule 24 to the PrincipalAct) received on or after 1 January 2012.

49.—(1) Section 77 of the Principal Act is amended by insertingthe following after subsection (6):

‘‘(6A) (a) In this subsection— 40

‘amount of the income referable to the relevantinterest’ shall be construed in accordance withparagraph 9D(1)(b)(ii) of Schedule 24;

‘relevant foreign tax’ and ‘relevant interest’have the same meanings, respectively, as in 45paragraph 9D(1)(a) of Schedule 24.

(b) Where, as respects an accounting period of a com-pany, the trading income of a trade carried onby the company includes an amount of relevantinterest, the amount of the income referable tothe relevant interest shall be treated as reduced5(where such a deduction cannot be made under,and is not forbidden by, any provision of theIncome Tax Acts applied by the CorporationTax Acts) by the relevant foreign tax in relationto the relevant interest.10

(6B) (a) In this subsection—

‘amount of the income referable to the relevantroyalties’ shall be construed in accordance withparagraph 9DB(1)(b)(ii) of Schedule 24;

‘relevant foreign tax’ and ‘relevant royalties’15have the same meanings, respectively, as inparagraph 9DB(1)(a) of Schedule 24.

(b) Where, as respects an accounting period of a com-pany, the trading income of a trade carried onby the company includes an amount of relevant20royalties, the amount of the income referable tothe relevant royalties shall be treated as reduced(where such a deduction cannot be made under,and is not forbidden by, any provision of theIncome Tax Acts applied by the Corporation25Tax Acts) by the relevant foreign tax in relationto the relevant royalties.’’.

(2) This section applies as respects accounting periods ending onor after 1 January 2012.

50.—(1) The Principal Act is amended by inserting the following30after section 633C—

‘‘633D.—The transfer of all the assets and liabilities of a com-pany 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 without35going 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 2012.40

51.—(1) The Principal Act is amended in Schedule 24 by insertingthe following after paragraph 9DB:

‘‘Unilateral Relief (leasing income)

9DC. (1) (a) In this paragraph—

‘leasing income’ means payments of any kind45as consideration for the use of, or the right touse, industrial, commercial or scientificequipment;

109

Mergers where acompany isdissolved withoutgoing intoliquidation.

Unilateral relief(leasing income).

110

‘relevant foreign tax’, in relation to leasingincome receivable by a company, means tax—

(i) which under the laws of any foreign ter-ritory has been deducted from theamount of the lease payment, 5

(ii) which corresponds to income tax or cor-poration tax,

(iii) which has not been repaid to thecompany,

(iv) for which credit is not allowable under 10arrangements, and

(v) which, apart from this paragraph, is nottreated under this Schedule as reduc-ing the amount of income;

‘relevant leasing income’ means leasing 15income receivable by a company—

(i) which falls to be taken into account incomputing the trading income of atrade carried on by the company, and

(ii) from which relevant foreign tax is 20deducted.

(b) For the purposes of this paragraph—

(i) the amount of corporation tax whichapart from this paragraph would bepayable by a company for an account- 25ing period and which is attributable toan amount of relevant leasing incomeshall be an amount equal to 12.5 percent of the amount by which theamount of the income of the company 30referable to the amount of the relevantleasing income exceeds the relevantforeign tax, and

(ii) the amount of any income of a companyreferable to an amount of relevant 35leasing income in an accounting periodshall, subject to paragraph 4(5), betaken to be such sum as bears to thetotal amount of the trading income ofthe company for the accounting period 40before deducting any relevant foreigntax the same proportion as the amountof relevant leasing income in theaccounting period bears to the totalamount receivable by the company in 45the course of the trade in the account-ing period.

(2) Where, as respects an accounting period of a company,the trading income of a trade carried on by the companyincludes an amount of relevant leasing income, the amount of 50

corporation tax which, apart from this paragraph, would be pay-able by the company for the accounting period shall be reducedby so much of 87.5 per cent of any relevant foreign tax borneby the company in respect of relevant leasing income in thatperiod as does not exceed the corporation tax which would be5so payable and which is attributable to the amount of therelevant leasing income.’’.

(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 2012.10

52.—(1) Section 21B of the Principal Act is amended in subsection(1)(a) by substituting the following for the definition of ‘‘relevantterritory’’:

‘‘ ‘relevant territory’ means—

(i) a Member State of the European Communities,15

(ii) not being such a Member State, a territory with thegovernment of which arrangements having the forceof law by virtue of section 826(1) have been made,

(iii) not being a territory referred to in subparagraph (i) or(ii), a territory with the government of which20arrangements have been made which on completionof the procedures set out in section 826(1) will havethe force of law, or

(iv) not being a territory referred to in subparagraph (i), (ii)or (iii), a territory the government of which has rati-25fied the Convention referred to in section 826(1C);’’.

(2) This section shall apply to dividends received on or after1 January 2012.

53.—Consequential on the expiration of the scheme of relief forcertain manufacturing companies under Part 14 of the Principal Act,30the provisions of that Act referred to in Schedule 1 are amended asprovided for in that Schedule.

Chapter 6

Capital Gains Tax

54.—(1) The Principal Act is amended—35

(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-graph (b):

‘‘(b) in the case of a relevant disposal made on or40after 7 December 2011, 30 per cent.’’.

(2) This section applies to disposals made on or after7 December 2011.

111

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.

Amendment ofsection 598(disposals ofbusiness or farm on‘‘retirement’’) ofPrincipal Act.

112

55.—(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 purposes 5of this paragraph, ‘shares’ includes warrantsin respect of shares (including share warrants(within the meaning of section 88 of the Com-panies Act 1963)) and any other instrumentor security the value of which is derived from, 10or calculated by reference to, shares;’’,

and

(b) in paragraph (e) by substituting ‘‘subject to paragraphs (d)and (da)’’ for ‘‘subject to paragraph (d)’’.

(2) This section applies as on and from 8 February 2012. 15

56.—(1) Section 562 of the Principal Act is amended by insertingthe following after subsection (2):

‘‘(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 the 20case may be, has paid an amount equal to the amount of thecontingent liability in respect of that liability.’’.

(2) This section applies to disposals made on or after 8 February2012.

57.—(1) Section 598 of the Principal Act is amended by substitut- 25ing the following for subsection (2):

‘‘(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— 30

(i) if the amount or value of the consideration forthe 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; 35

(ii) if the amount or value of the consideration forthe 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- 40sideration and €750,000.

(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, then—

(i) if the amount or value of the consideration for 45the disposal does not exceed €500,000, reliefshall be given in respect of the full amount of

capital gains tax chargeable on any gain accru-ing on the disposal;

(ii) if the amount or value of the consideration forthe disposal exceeds €500,000, the amount ofcapital gains tax chargeable on the gain accruing5on the disposal shall not exceed 50 per cent ofthe difference between the amount of that con-sideration and €500,000.

(c) For the purposes of paragraphs (a) and (b), theamount of capital gains tax chargeable in respect of10the gain shall be the amount of tax which would nothave been chargeable but for that gain.’’.

(2) Section 598(2)(b) (inserted by subsection (1)) of the PrincipalAct shall apply to disposals made on or after 1 January 2014.

58.—(1) Section 599(1) of the Principal Act is amended by substi-15tuting the 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 yearsdisposes of the whole or part of his or her quali-20fying 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 of66 years disposes of the whole or part of his or25her qualifying assets to his or her child and themarket value of the qualifying assets is greaterthan €3,000,000, relief shall be given in respectof the capital gains tax chargeable on any gainaccruing on the disposal as if the consideration30for the disposal had been €3,000,000.’’.

(2) Section 599(1)(b)(ii) (inserted by subsection (1)) of the Princi-pal Act shall apply to disposals made on or after 1 January 2014.

59.—(1) Section 611(1)(a) of the Principal Act is amended in sub-paragraph (iii) by inserting ‘‘the Local Government Computer Ser-35vices 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,’’.


60.—Section 613 of the Principal Act is amended by inserting thefollowing after subsection (6):

‘‘(7) No chargeable gain shall arise on the receipt of anamount of compensation whether in money or money’s worth45under 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 bog

113

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.

Amendment ofSchedule 15 (list ofbodies for purposesof section 610) toPrincipal Act.

Relief for certaindisposals of land orbuildings.

Amendment ofsection 579 (non-resident trusts) ofPrincipal Act.

114

Special Areas of Conservation or Natural Heritage Areas, asrequired under the European Communities (Birds and NaturalHabitats) Regulations 2011 (S.I. No. 477 of 2011) or the Wildlife(Amendment) Act 2000.’’.

61.—(1) Schedule 15 to the Principal Act is amended— 5

(a) by substituting the following for paragraph 9:

‘‘9. Teagasc — The Agriculture and Food Develop-ment Authority.’’,

and

(b) by inserting the following after paragraph 31: 10

‘‘31A. The Dublin Institute of Technology in respectof any disposal made by it to the GrangegormanDevelopment Agency.

31B. The Grangegorman Development Agency.’’.

(2) This section applies to disposals made on or after 8 February 152012.

62.—(1) The Principal Act is amended by inserting the followingafter section 604:

‘‘604A.—(1) This section applies to land or buildings situ-ated in an EEA State (within the meaning of section 20747B(1))—

(a) which were acquired on or after 7 December 2011 upto and including 31 December 2013, and

(b) which continue in the ownership of the person whoacquired that land or buildings for a period of at 25least 7 years from the date that such land or build-ings were acquired.

(2) On a disposal of land or buildings to which this sectionapplies, such portion of the gain shall not be a chargeable gainas represents the same proportion of the gain as 7 years bears 30to the period of ownership of such land or buildings.

(3) Subsection (2) shall not apply where arrangements(within the meaning of section 546A) have been put in placeand it can be shown that relief (apart from relief given underthis section) would be less if the arrangements had not been 35put in place.’’.


(a) in subsection (1) by deleting ‘‘domiciled and’’ in each place,

(b) in subsection (2) by substituting the following for subsectionparagraph (b): 40

‘‘(b) Notwithstanding paragraph (a), where a benefici-ary under the settlement was neither resident norordinarily resident in the State in a year of assess-ment during which a gain accrued to the trustees,but was so resident or ordinarily resident in an 45earlier and subsequent year of assessment, thegain which would have accrued to that benefici-ary if paragraph (a) had applied shall be treated

as accruing in the first year of assessment inwhich he or she subsequently becomes residentor ordinarily resident in the State.

(c) Notwithstanding paragraph (a), where a personwas excluded as a beneficiary under the settle-5ment 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 to the10beneficiary if paragraph (a) had applied shall betreated as accruing in the first year of assessmentin which that person was subsequently includedas a beneficiary of the settlement concerned.

(d) Notwithstanding paragraph (a), if a beneficiary is15not treated under the provisions of paragraph(a), (b) or (c) as if any apportioned part of a gainaccrued to him or her in a year of assessmentand—

(i) the trustees have earlier realised a chargeable20gain, and

(ii) the beneficiary receives a capital payment(within the meaning of section 579A(1))from the trust during a year of assessment inwhich he or she is either resident or ordi-25narily resident in the State,

then, the beneficiary shall be treated as if anamount equal to—

(I) the capital payment, or

(II) the apportioned gain which would have30accrued 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 inwhich the capital payment is received.35

(e) For the purposes of this section, any amountreferred to in paragraph (a), (b) or (c) shall beapportioned in such manner as is just and reason-able between persons having interests in thesettled property, whether the interest is a life40interest or an interest in reversion, and so thatthe chargeable gain is apportioned as near asmay be according to the respective values ofthose interests, disregarding in the case of adefeasible interest the possibility of defeasance.’’,45

and

(c) in subsection (3) by deleting paragraph (b).


115

Mineral oil tax:carbon charge.

116

PART 2

Excise

64.—(1) The Finance Act 1999 is amended with effect as on andfrom 7 December 2011—

(a) by substituting the following for Schedule 2 (as amended by 5section 42 of the Finance Act 2011):

‘‘SCHEDULE 2

Rates of Mineral Oil Tax

(With effect as on and from 7 December 2011)

Description of Mineral Oil 10Rate of Tax

Light Oil:Petrol €587.71 per 1,000 litresAviation gasoline €587.71 per 1,000 litres

Heavy Oil:Used as a propellant 15€479.02 per 1,000 litresUsed for air navigation €479.02 per 1,000 litresUsed for private pleasure navigation €479.02 per 1,000 litresKerosene used other than as a propellant €38.02 per 1,000 litresFuel oil €60.73 per 1,000 litresOther heavy oil 20€88.66 per 1,000 litres

Liquefied Petroleum Gas:Used as a propellant €88.23 per 1,000 litresOther liquefied petroleum gas €24.64 per 1,000 litres

Coal:For business use 25€4.18 per tonneFor 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): 30

‘‘SCHEDULE 2A

Carbon Charge


Description of Mineral Oil Rate

Light Oil: 35Petrol €45.87 per 1,000 litresAviation gasoline €45.87 per 1,000 litres

Heavy Oil:Used as a propellant €53.30 per 1,000 litresUsed for air navigation 40€53.30 per 1,000 litresUsed for private pleasure navigation €53.30 per 1,000 litresKerosene used other than as a propellant €38.02 per 1,000 litresFuel oil €45.95 per 1,000 litresOther heavy oil €41.30 per 1,000 litres

Liquefied Petroleum Gas: 45Used as a propellant €24.64 per 1,000 litresOther liquefied petroleum gas €24.64 per 1,000 litres

’’.

(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 amended bysubsection (1)(a)):

‘‘SCHEDULE 25

Rates of Mineral Oil Tax

(With effect as on and from 1 May 2012)

Description of Mineral Oil Rate of Tax

Light Oil:Petrol10 €587.71 per 1,000 litresAviation gasoline €587.71 per 1,000 litres

Heavy Oil:Used as a propellant €479.02 per 1,000 litresUsed for air navigation €479.02 per 1,000 litresUsed for private pleasure navigation15 €479.02 per 1,000 litresKerosene used other than as a propellant €50.73 per 1,000 litresFuel oil €76.53 per 1,000 litresOther heavy oil €102.28 per 1,000 litres

Liquefied Petroleum Gas:Used as a propellant20 €96.45 per 1,000 litresOther liquefied petroleum gas €32.86 per 1,000 litres

Coal:For business use €4.18 per tonneFor other use €8.36 per tonne

’’,25

and

(b) by substituting the following for Schedule 2A (as amendedby subsection (1)(b)):

‘‘SCHEDULE 2A

Carbon Charge30

(With effect as on and from 1 May 2012)

Description of Mineral Oil Rate

Light Oil:Petrol €45.87 per 1,000 litresAviation gasoline35 €45.87 per 1,000 litres

Heavy Oil:Used as a propellant €53.30 per 1,000 litresUsed for air navigation €53.30 per 1,000 litresUsed for private pleasure navigation €53.30 per 1,000 litresKerosene used other than as a propellant40 €50.73 per 1,000 litresFuel oil €61.75 per 1,000 litresOther heavy oil €54.92 per 1,000 litres

Liquefied Petroleum Gas:Used as a propellant €32.86 per 1,000 litresOther liquefied petroleum gas45 €32.86 per 1,000 litres

’’.

(3) Chapter 1 of Part 2 of the Finance Act 1999 is amended (witheffect as on and from 7 December 2011) in section 96(1B) (inserted

117

Rates of tobaccoproducts tax.

Amendment ofChapter 1 (mineraloil tax) of Part 2 ofFinance Act 1999.

118

by section 64(1)(f) of the Finance Act 2010) by substituting ‘‘A isthe amount to be charged per tonne of CO2 emitted, being €20 in thecase of petrol, aviation gasoline and heavy oil used as a propellant orfor air navigation or for private pleasure navigation, and €15 in thecase of each other description of mineral oil in Schedule 2A’’ for ‘‘A 5is the amount, €15, to be charged per tonne of CO2 emitted’’.

(4) Chapter 1 of Part 2 of the Finance Act 1999 is further amendedwith effect as on and from 1 May 2012—

(a) in section 96(1B) (as amended by subsection (3)) by substi-tuting ‘‘A is the amount, €20, to be charged per tonne of 10CO2 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€15 in the case of each other description of mineral oil in 15Schedule 2A’’,

and

(b) in section 98(1) (as amended by section 64(1)(h) of the Fin-ance Act 2010) by substituting ‘‘€56.31’’ for ‘‘€43.60’’ and‘‘€38.44’’ for ‘‘€30.22’’. 20

65.—The Finance Act 2005 is amended with effect as on and from7 December 2011 by substituting the following for Schedule 2 to thatAct (as amended by section 16 of the Finance Act 2009):

‘‘SCHEDULE 2

Rates of Tobacco Products Tax 25


Description of Product Rate of Tax

Cigarettes.................................................................... €192.44 per thousandtogether with an amountequal to 18.03 per cent of 30the price at which thecigarettes are sold by retail

Cigars .......................................................................... €271.337 per kilogram

Fine-cut tobacco for the rolling of cigarettes ....... €228.968 per kilogram

Other smoking tobacco ............................................ 35€188.243 per kilogram

’’.

66.—(1) Chapter 1 of Part 2 of the Finance Act 1999 is amended—

(a) in section 94(1) by deleting the definitions of ‘‘business use’’,‘‘charitable organisation’’, ‘‘dual use’’, ‘‘energy intensivebusiness’’, ‘‘horticultural produce’’, ‘‘horticultural pro- 40ducer’’, ‘‘household’’, ‘‘land’’, ‘‘mineralogical process’’and ‘‘ships’ stores’’,

(b) in section 94(1) by substituting the following for the defini-tion of ‘‘ASTM’’:

‘‘ ‘ASTM’ means ASTM International (formerly knownas the 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 from5biomass;’’,

(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 product10within the meaning of Article 2.1 of the Directive insolid form;’’,

(e) in section 94(1) by substituting the following for the defini-tion of ‘‘dumper’’:

‘‘ ‘dumper’ means a vehicle described in paragraph 2(a)15of Part 1 of the Schedule to the Finance (ExciseDuties)(Vehicles) Act 1952;’’,

(f) in section 94(1) by inserting the following after the definitionof ‘‘fuel oil’’:

‘‘ ‘gas oil’ means heavy oil of which not more than 50 per20cent by volume distils at a temperature not exceeding 240degrees Celsius and of which more than 50 per cent byvolume distils at a temperature not exceeding 340degrees Celsius;’’,

(g) in section 94(1) by substituting the following for the defini-25tion of ‘‘marker’’:

‘‘ ‘marker’ means any substance that is required, underexcise 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;’’,30

(h) in section 94(1) by substituting the following for the defini-tion of ‘‘mineral oil’’:

‘‘ ‘mineral oil’ means hydrocarbon oil, liquefied pet-roleum gas, substitute fuel and additives;’’,

(i) in section 94(1) by substituting the following for the defini-35tion of ‘‘off-road dumper’’:

‘‘ ‘off-road dumper’ means a vehicle described in para-graph 2(b) of Part 1 of the Schedule to the Finance(Excise Duties)(Vehicles) Act 1952;’’,

(j) in section 94(1) by substituting the following for the defini-40tion of ‘‘propellant’’:

‘‘ ‘propellant’ means—

(a) in relation to mineral oil in the State, mineral oilused for combustion in the engine of a motorvehicle, or45

119

120

(b) in relation to mineral oil in another MemberState, mineral oil that is subject to a minimumrate 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- 5tion of ‘‘special container’’:

‘‘ ‘special container’ means any freight container fittedwith specially designed apparatus for the purpose ofrefrigeration, oxygenation, thermal insulation or othersimilar purposes;’’, 10

(l) in section 94(1) by substituting the following for the defini-tion of ‘‘substitute fuel’’:

‘‘ ‘substitute fuel’ means any product in liquid form,other than—

(a) a mineral oil of a description for which a rate is 15specified in Schedule 2, or

(b) an additive,

that is used, intended for use, or suitable for use as motoror heating fuel;’’,

(m) in section 94 by substituting the following for subsection 20(2):

‘‘(2) (a) In this Chapter ‘fuel tank’ means any tankor other vessel in or on a motor vehicle, whichis used, or is capable of being used, to supplyfuel for combustion— 25

(i) in the engine of the motor vehicle for thepurposes of propulsion of that vehicle, or

(ii) in the engine of another motor vehiclewhich can provide traction for thosepurposes. 30

(b) For the purposes of paragraph (a) it shall be pre-sumed, until the contrary is shown, that a tankor other vessel referred to in that paragraphis capable of being used to supply fuel for thepurposes of propulsion if there is any outlet 35from the tank or vessel other than—

(i) an outlet which is permanently and solelyfor the supply of fuel for refrigeration,oxygenation, thermal insulation or otherspecialised systems in or on the motor 40vehicle, or

(ii) in the case of an oil road tanker, an outletwhich is solely for discharging fuel fromthe tanker.’’,

(n) by substituting the following for section 95: 45

‘‘95.—(1) Subject to the provisions of this Chapter,and any regulations made under it, a duty of excise, to be

known as mineral oil tax, shall be charged, levied andpaid—

(a) on all mineral oil—

(i) released for consumption in the State, or

(ii) released for consumption in another5Member State, and brought into theState,

and

(b) on all coal that is brought into, or produced in,the State.10

(2) Liability to mineral oil tax on mineral oil shall ariseat the time when that mineral oil is—

(a) released for consumption in the State, or

(b) following release for consumption in anotherMember State, brought into the State.15

(3) For the purposes of charging mineral oil tax onmineral oil, the volume of mineral oil shall be ascertainedat a temperature of 15 degrees Celsius and in the mannerspecified by the Commissioners.

(4) Any mineral oil that is the product of recycling is20liable to mineral oil tax in accordance with section 96(3),and no allowance shall be made for any mineral oil taxthat may have been paid on the mineral oil that was sub-jected to recycling.

(5) Notwithstanding the generality of subsection (1),25only mineral oil and coal which come within the defini-tion of ‘energy products’ in Article 2.1 of the Directive,substitute fuel and additives shall be subject to mineraloil tax.’’,

(o) by deleting section 95A,30

(p) in section 96 by substituting the following for subsection (3):

‘‘(3) The rate of mineral oil tax charged on recycledmineral oil under section 95(4) shall be—

(a) where that mineral oil is used, or intended foruse, as a propellant, the rate specified in35Schedule 2 for heavy oil used as a propel-lant, and

(b) where that mineral oil is used, or intended foruse, otherwise than as a propellant, the rateso specified for other heavy oil.’’,40

(q) by substituting the following for section 100:

‘‘100.—(1) Subject to such conditions as the Com-missioners may prescribe or otherwise impose, a relieffrom mineral oil tax shall be granted on any mineral oilthat is shown to the satisfaction of the Commissioners—45

121

122

(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, forchemical reduction or in electrolytic or metal-lurgical processes, 5

(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 theMinister thinks proper,

(d) to be intended for use, or to have been used, by 10a manufacturer in the production of mineraloil,

(e) to be heavy oil which is intended for use, orwhich has been used, in aircraft engines dur-ing testing and maintenance of those 15engines, 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 20supplied 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 shownto the satisfaction of the Commissioners— 25

(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 been 30used, 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 to 35mineral 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— 40

(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 in 45that vehicle at that time, where the mineraloil has, in that Member State, been releasedfor consumption as a propellant,

(b) present in the standard tank of a commercialmotor vehicle, or any other commercial mech- 50anically propelled vehicle, at the time that

vehicle is brought into the State from anotherMember State, where that mineral oil hasbeen—

(i) released for consumption as a propellantin another Member State, or5

(ii) released for consumption otherwise thanas a propellant in another Member Stateand is permitted, under the law in forcein that Member State, to be used in thatvehicle,10

or

(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-15ing any such mineral oil that has been markedin accordance with the requirements of thatother Member State, where the use forprivate pleasure navigation of mineral oil somarked is permitted by that Member State.20

(5) Subject to such conditions as the Commissionersmay prescribe or otherwise impose, a relief from the car-bon charge shall apply—

(a) to any mineral oil that is shown to the satis-faction of the Commissioners to be biofuel,25and

(b) where biofuel has been mixed or blended withany other mineral oil, to the biofuel contentof any such mixture or blend.

(6) Subject to such conditions as the Commissioners30may prescribe or otherwise impose, a relief from the car-bon charge shall apply to any mineral oil that is shown tothe satisfaction of the Commissioners to be intended foruse, or to have been used—

(a) in an installation that is covered by a greenhouse35gas emissions permit, or

(b) for environmentally friendly heat and powercogeneration (other than micro-cogenerationwithin the meaning of Directive 2004/8/EC ofthe European Parliament and of the Council40of 11 February 20041), where it is determined,by a competent authority designated for thepurpose by the Minister, that such cogener-ation meets the requirements for high-efficiency cogeneration under Directive452004/8/EC of the European Parliament and ofthe Council of 11 February 2004.

(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.50

1OJ No. L52, 21.02.2004, p.50

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124

(8) (a) Claims for repayment under subsection (7)shall be made in such form as the Com-missioners may direct and shall be in respectof mineral oil used within a period of not lessthan one and not more than 6 months. 5

(b) Except where the Commissioners may in anyparticular case allow, a repayment claim shallbe made within 4 months following the end ofthe period referred to in paragraph (a).’’,

(r) by inserting the following after section 100: 10

‘‘Mineral oil 100A.—(1) In this section—tax on coal.

‘business use’, subject to Article 11 of theDirective, means use by a business entity 15which independently carries out, in anyplace, the supply of goods and services;

‘charitable organisation’ means any body ofpersons, or trust, established for charitablepurposes; 20

‘dual use’ means use both as a heating fueland for purposes other than as a motor fueland heating fuel and includes use for chemi-cal reduction and in electrolytic and metal-lurgical processes; 25

‘energy intensive business’ means any busi-ness entity where either the purchases ofenergy products and electricity amount to atleast 3 per cent of the production value, orthe mineral oil tax payable amounts to at 30least 0.5 per cent of the added value;

‘household’ means a premises used as adwelling;

‘mineralogical process’ means a processclassified in the NACE nomenclature under 35code DI 26 ‘manufacture of other non-met-allic mineral products’ in Council Regulation(EEC) No. 3037/90 of 9 October 19902 on thestatistical classification of economic activitiesin the European Community. 40

(2) Liability to mineral oil tax on coalshall arise at the time that coal is the subjectof final delivery, and shall be paid by the per-son to whom it is delivered.

(3) Every person who makes final delivery 45of coal, otherwise than to households or tocharitable organisations, and every personwho is liable to pay mineral oil tax on coal,shall register for that purpose with the Com-missioners in accordance with such pro- 50cedures as the Commissioners may prescribeor otherwise impose.

2OJ No. L293, 24.10.1990, p.1

(4) Subject to such conditions as the Com-missioners may prescribe or otherwiseimpose, a relief from mineral oil tax shall begranted in respect of coal which is shown tothe satisfaction of the Commissioners to be5intended for use or to have been used—

(a) for the generation of electricity,

(b) for combined heat and powergeneration,

(c) for agricultural, horticultural or pis-10cicultural works, and in forestry,

(d) for dual use,

(e) for mineralogical processes,

(f) for household use,

(g) by a charitable organisation,15

(h) as fuel for trains,

(i) by an energy intensive businesswhich holds a greenhouse gasemissions permit, or

(j) for purposes other than as motor or20heating fuel.

(5) Without prejudice to subsection (4),and subject to such conditions as the Com-missioners may prescribe or otherwiseimpose, a relief from mineral oil tax amount-25ing to one-half of the chargeable rate shallbe granted in respect of coal which is shownto the satisfaction of the Commissioners tobe intended for use, or to have been used,by a business that is not an energy intensive30business and that holds a greenhouse gasemissions permit.

(6) Where coal is eligible for relief underany provision of this section, effect may begiven to that relief by means of remission or35repayment of mineral oil tax.

(7) (a) Claims for repayment under sub-section (6) shall be made in suchform as the Commissioners maydirect and shall be in respect of40coal delivered within a period ofnot less than one and not morethan 6 months.

(b) Except where the Commissionersmay in any particular case allow,45a repayment claim shall be madewithin 4 months following theperiod referred to in paragraph(a).’’,

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126

(s) by substituting the following for section 101:

‘‘Licensing of 101.—(1) Every person who—mineral oiltraders.

(a) produces, sells or deals in, 5

(b) keeps for sale or delivery, or

(c) delivers,

any mineral oil (other than additives) for useas a propellant, or any aviation gasoline,shall hold a licence (in this section referred 10to as an ‘auto-fuel trader’s licence’) grantedby the Commissioners under this section.

(2) Every person who—

(a) produces, sells or deals in,

(b) keeps for sale or delivery, or 15

(c) delivers,

any gas oil or kerosene that is, under section97, liable to a rate lower than the appropriatestandard rate, shall hold a licence (in thissection referred to as a ‘marked fuel trader’s 20licence’) granted by the Commissionersunder this section.

(3) For the purposes of subsections (1)and (2), a person must hold a separate auto-fuel trader’s licence or marked fuel trader’s 25licence for each premises in which the min-eral oil concerned is produced and eachpremises or, in the case of a marked fueltrader’s licence, place, in which it is—

(a) sold or dealt in, or 30

(b) kept for sale or delivery,

by the person.

(4) (a) Except where paragraph (c)applies a person shall only delivermineral oil referred to in subsec- 35tion (1) from a premises inrespect of which an auto-fueltrader’s licence is in force.

(b) Except where paragraph (c)applies a person shall only deliver 40mineral oil referred to in subsec-tion (2) from a premises or placein respect of which a marked fueltrader’s licence is in force.

(c) Paragraphs (a) and (b) shall not 45apply to any delivery of mineraloil from a place outside the State,

where that delivery is a consign-ment carried out in accordancewith the particular requirementsthat apply to it under Chapter 2Aor 2B of Part 2 of the Finance5Act 2001 and the Control ofExcisable Products Regulations2010 (S.I. No. 146 of 2010).

(5) (a) Subsections (2) and (3) shall notapply to persons and premises or10places that are, for the timebeing, approved under Regu-lation 38 of the Mineral Oil TaxRegulations 2001(S.I. No. 442 of2001).15

(b) The approvals referred to in para-graph (a) shall cease to haveeffect on such date as the Com-missioners may prescribe.

(6) The Commissioners may, subject to20subsections (7) and (8), grant to a person anauto-fuel trader’s licence or a marked fueltrader’s licence—

(a) on application to the Com-missioners in writing and on25receipt by them of such infor-mation as they may reasonablyrequire, and

(b) where the appropriate excise dutyunder subsection (10) has been30paid.

(7) (a) The particular activity or activitiesreferred to in subsections (1) and(2) for which a person is licensedmay be specified by the Com-35missioners in relation to eachauto-fuel trader’s licence ormarked fuel trader’s licence, asthe case may be.

(b) An auto-fuel trader’s licence and40a marked fuel trader’s licence—

(i) shall be subject to conditionsspecified in relation to thelicence, concerning thesecurity and suitability, to45the satisfaction of the Com-missioners, of any premisesor place concerned and of alltanks and other equipmentused for mineral oils on that50premises or place, and

(ii) may be subject to such otherconditions as the Com-missioners may so specify.

127

128

(c) Different conditions may be speci-fied under paragraph (b), havingregard to the activity or activitiesto which the licence relates, themineral oil concerned and the cir- 5cumstances of each particularcase.

(d) The Commissioners may at anytime vary the conditions referredto in paragraph (b). 10

(8) An auto-fuel trader’s licence or amarked fuel trader’s licence shall not begranted—

(a) where the applicant (or, where theapplicant is a company, any 15director or person having controlof that company within the mean-ing of section 11 of the TaxesConsolidation Act 1997) has, inthe 10 years before the appli- 20cation, been convicted of anyindictable offence under the Actsreferred to in section 1078(1) ofthe Taxes Consolidation Act1997, or any corresponding 25offence under the law of anotherMember State,

(b) where the applicant does not holda current tax clearance certificateissued under section 1094 of the 30Taxes Consolidation Act 1997, or

(c) where the applicant does not, whenrequired, show to the satisfactionof the Commissioners that theapplicant, and the premises or 35place concerned, can satisfy suchconditions as may be imposed bythe Commissioners.

(9) The Commissioners may revoke anauto-fuel trader’s licence or a marked fuel 40trader’s licence where—

(a) the holder of the licence, or thepremises or place concerned,contravenes or fails to satisfy theconditions specified in relation to 45the licence,

(b) the holder of the licence is guilty ofan offence referred to in subsec-tion (8)(a), or contravenes orfails to comply with any require- 50ment of excise law in relation tothe production, sale or dealing in,keeping or delivery of mineraloil.

(10) A duty of excise shall be charged, lev-ied and paid, at the rate of €250, on everyauto-fuel trader’s licence and marked fueltrader’s licence granted under this section.

(11) An auto-fuel trader’s licence and a5marked fuel trader’s licence shall, at all timesbe clearly displayed at the premises or placein respect of which that licence has beengranted.

(12) An auto-fuel trader’s licence and a10marked fuel trader’s licence shall, exceptwhere—

(a) another date is prescribed, or

(b) a licence is revoked under subsec-tion (9),15

continue in force until the next following 30June after the date on which it came intoforce.

(13) The Commissioners may compile alist of persons who hold an auto-fuel trader’s20licence or a marked fuel trader’s licence, andof the premises or places in respect of whichthose licences are in force, and notwithstand-ing any obligation to maintain secrecy or anyother restriction on the disclosure or pro-25duction of information obtained by or fur-nished to them, the Commissioners may, byelectronic means or otherwise, make thoselists available to the public.’’,

(t) by deleting section 101A,30

(u) in section 102(1) by substituting the following for subpara-graph (iii) of paragraph (b):

‘‘(iii) any mineral oil containing any marker requiredby another Member State,’’,

(v) in section 102(1) by substituting the following for para-35graphs (d), (da) and (e):

‘‘(d) to produce, sell or deal in, keep for sale or deliv-ery, or deliver any mineral oil (other thanadditives) for use as a propellant, or any avi-ation gasoline, where that person is not, in40relation to those activities, the holder of anauto-fuel trader’s licence granted undersection 101(1),

(e) to produce, sell or deal in, keep for sale or deliv-ery, or deliver any gas oil or kerosene that is,45under section 97, liable to a rate lower thanthe appropriate standard rate, where that per-son is not, in relation to those activities, theholder of a marked fuel trader’s licencegranted under section 101(2),50

129

130

(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 grantedunder section 101(2), to fail to display thelicence at the premises or place to which that 5licence relates, or

(g) to contravene, or fail to comply with, a tempor-ary prohibition of trade order under section102A.’’,

(w) in section 102 (1A) by substituting the following for subpar- 10agraph (iii) of paragraph (b):

‘‘(iii) any mineral oil containing any marker requiredby another Member State.’’,

(x) in section 102 by substituting the following for subsection(3): 15

‘‘(3) It is an offence under this subsection—

(a) without the consent in writing of the Com-missioners, to remove or attempt to removeor be knowingly concerned in removing orattempting to remove any marker from any 20mineral 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 ofimpeding the identification of a marker in any 25mineral 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 subsection(5): 30

‘‘(5) (a) Any mineral oil in respect of which anoffence under subsection (1), (1A), (1B) or(3) was committed, and any substance mixedwith that mineral oil, is liable to forfeiture.

(b) Where any mineral oil is liable to forfeiture 35under paragraph (a), for an offence relatingto the sale, dealing in, or keeping for sale ordelivery of mineral oil at a premises or place,any pumps, vessels or other equipment, usedat that premises or place for supplying the 40mineral oil concerned, are liable toforfeiture.’’,

and

(z) by deleting section 105.

(2) Paragraphs (s), (v) and (y) come into operation on such day 45or days as the Minister may appoint by order, and different days maybe so appointed for different provisions and for different purposes.

67.——Section 65 of the Finance Act 2010 is amended by substitut-ing the following for subsection (1):

‘‘(1) Chapter 1 of Part 2 of the Finance Act 1999 isamended—

(a) in section 94(1) (as amended by section 66 of the Fin-5ance Act 2012) by deleting the definition of ‘coal’,

(b) in section 95 by substituting the following for subsec-tion (1) (as amended by section 66 of the FinanceAct 2012):

‘‘(1) Subject to the provisions of this Chapter, and10any regulations made under it, a duty of excise, tobe known as mineral oil tax, shall be charged, leviedand paid on all mineral oil—

(a) released for consumption in the State, or

(b) released for consumption in another15Member State and brought into theState.’’,

(c) in section 95(2) (as amended by section 66 of the Fin-ance Act 2012) by substituting ‘‘Liability to mineraloil tax shall arise at the time when the mineral oil20is’’ for ‘‘Liability to mineral oil tax on mineral oilshall arise at the time when that mineral oil is’’,

(d) in section 95(5) (as amended by section 66 of the Fin-ance Act 2012) by substituting ‘‘only mineral oil’’ for‘‘only mineral oil and coal’’, and25

(e) by deleting section 100A (inserted by section 66 of theFinance Act 2012).’’.

68.—(1) Chapter 1 of Part 2 of the Finance Act 2008 is amended—

(a) in section 58(1) by substituting ‘‘Subject to the provisions ofthis Chapter’’ for ‘‘In addition to any other duty which30may be chargeable, and subject to the provisions of thisChapter’’,

(b) in section 59(2) by deleting ‘‘(3),’’,

(c) in section 59 by deleting subsection (3), and

(d) in section 60 by inserting the following after subsection (1):35

‘‘(1A) Any supplier that is not established in the Stateshall make such arrangements with the Commissioners asthe Commissioners may require for the payment of thetax and accounting for it, and those arrangements shallinclude the appointment of a competent person in the40State to give effect to them.’’.

69.—Chapter 2 of Part 3 of the Finance Act 2010 is amended—

(a) in section 66(1), in the definition of ‘‘CN Code’’, by substi-tuting ‘‘Commission Regulation (EC) No. 2031/2001’’ for‘‘Commission Regulation (EEC) No. 2031/2001’’,45

131

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.

132

(b) in section 67(1), with effect as on and from 1 May 2012, bysubstituting ‘‘€4.10’’ for ‘‘€3.07’’,

(c) in section 67(3), with effect as on and from 1 May 2012, bysubstituting ‘‘€0.020’’ for ‘‘€0.015’’,

(d) by substituting the following for section 68: 5

‘‘68.—(1) Tax shall be charged at the time the naturalgas is supplied by a supplier to a consumer and, exceptwhere subsection (2) applies, that supplier shall beaccountable for and liable to pay the tax charged on thenatural gas supplied by that supplier. 10

(2) A consumer shall be liable for any deficiency in theamount of tax paid on a supply, where that deficiency hasresulted from false or misleading information furnishedto the supplier concerned by that consumer, and no suchliability shall attach to the supplier.’’, 15

(e) in section 70 by inserting the following subsection:

‘‘(3) Any supplier that is not established in the Stateshall make such arrangements with the Commissioners asthe Commissioners may require for the payment of thetax and accounting for it, and those arrangements shall 20include the appointment of a competent person in theState to give effect to them.’’,

(f) in section 71(1) by substituting the following for paragraph(a):

‘‘(a) solely for the generation of electricity, or’’, 25

(g) in section 71 by substituting the following for subsection (2):

‘‘(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- 30plied for use—

(a) in an installation that is covered by a greenhousegas emissions permit, or

(b) for environmentally friendly heat and powercogeneration (other than micro-cogeneration 35within the meaning of Directive 2004/8/EC ofthe European Parliament and of the Councilof 11 February 20041), where it is determined,by a competent authority designated for thepurpose by the Minister, that such cogener- 40ation meets the requirements for high-efficiency cogeneration under Directive2004/8/EC of the European Parliament and ofthe Council of 11 February 2004.’’,

and 45

(h) in section 71 by inserting the following subsection:

1OJ No. L52, 21.02.2004, p.50

‘‘(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.’’.

70.—Chapter 3 of Part 3 of the Finance Act 2010 is amended—5

(a) in section 77, in the definition of ‘‘CN Code’’, by substituting‘‘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 solid10fuel is 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 deficiency15has resulted from false or misleading information fur-nished to the supplier concerned by that consumer, andno such liability shall attach to the supplier.’’,

and

(c) by substituting the following for section 82:20

‘‘82.—(1) Subject to such conditions as the Com-missioners may prescribe or otherwise impose, a fullrelief from tax shall be granted on any solid fuel that isshown to the satisfaction of the Commissioners to havebeen delivered for use—25

(a) solely for the generation of electricity, or

(b) for chemical reduction or in electrolytic ormetallurgical processes.

(2) Subject to such conditions as the Commissionersmay prescribe or otherwise impose, a relief from tax shall30be 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 greenhousegas emissions permit, or35

(b) for environmentally friendly heat and powercogeneration (other than micro-cogenerationwithin the meaning of Directive 2004/8/EC ofthe European Parliament and of the Councilof 11 February 20041), where it is determined,40by a competent authority designated for thepurpose by the Minister, that such cogener-ation meets the requirements for high-efficiency cogeneration under Directive2004/8/EC of the European Parliament and of45the Council of 11 February 2004.

1OJ No. L52, 21.02.2004, p.50

133

Amendment ofChapter 3 (solidfuel carbon tax) ofPart 3 of FinanceAct 2010.

Vehicle registrationtax.

134

(3) The relief under subsection (2) is—

(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- 5culated at the rate of €4.18 per tonne.’’.

71.—(1) Chapter IV (which relates to the registration and taxationof vehicles) of Part II of the Finance Act 1992 is amended—

(a) in section 130 by inserting the following after the definitionof ‘‘the register’’: 10

‘‘ ‘registration’ includes re-registration;’’,

(b) in section 130 by substituting the following for the definitionof ‘‘vehicle’’:

‘‘ ‘vehicle’ means a mechanically propelled vehicle,including an unregistered vehicle— 15

(a) built up from the chassis, or

(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;’’, 20

(c) by deleting sections 130A, 130B and 131A,

(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’’, 25

(e) by deleting section 132(5)(b),

(f) by deleting subsections (1) to (5) of section 135B,

(g) in section 135B(6)(a) by substituting ‘‘sections 105B and105D’’ for ‘‘sections 105B, 105C and 105D’’,

(h) by deleting sections 135BA and 135C(3)(a), 30

(i) by inserting the following section after section 135C:

‘‘Repayment 135D.—(1) The Commissioners mayof amounts of repay to a person an amount calculated invehicle 35

accordance with this section of vehicleregistration taxregistration tax based on the open marketon export of

certain 40selling price of a vehicle which has beenvehicles. removed from the State, where—

(a) the vehicle is a category M1vehicle, 45

(b) the vehicle has been registeredunder section 131 and thevehicle registration tax hasbeen paid,

(c) the vehicle was, immediately priorto being so removed, registeredunder section 131,

(d) within 30 days prior to being soremoved—5

(i) the vehicle and anydocumentation to whichparagraph (b) or (c)relates, and

(ii) where applicable, a valid10test certificate (within themeaning of the RoadTraffic (National Car Test)Regulations 2003 (S.I. No.405 of 2003)) in respect of15the vehicle,

have been examined by a com-petent person and all relevantmatters have been found by thatperson to be in order,20

(e) at the time of examination towhich paragraph (d) relates, theopen market selling price of thevehicle (being the price towhich subsection (2) relates) is25not less than €2,000, and

(f) the requirements of subsection (3)have been complied with.

(2) The amount of vehicle registrationtax to be repaid shall be calculated by refer-30ence to the open market selling price (beingthat price as determined by theCommissioners) of the vehicle at the timeof the examination referred to in subsec-tion (1)(d).35

(3) A claim for repayment for an amountof vehicle registration tax under this sectionshall be made in such manner and in suchform as may be approved by the Com-missioners for that purpose and shall be40accompanied by—

(a) documentation to prove to thesatisfaction of the Com-missioners that the vehicle wasremoved from the State within4530 days of its examination underthis section, and

(b) proof that the vehicle has sub-sequently been registered inanother Member State or has50been permanently exported out-side the European Union.

135


Ministerial orders.

136

(4) The amount of vehicle registrationtax calculated for repayment under thissection in respect of a vehicle shall bereduced to take account of—

(a) the net amount of any remission or 5repayment of that tax pre-viously allowed on the vehicleunder this Chapter, and

(b) an administration charge of €500.

(5) Any repayment of vehicle regis- 10tration tax under this section shall be to theperson named, at the time of the examin-ation referred to in subsection (1)(d), onthe registration certificate issued in accord-ance with section 131(5)(a).’’, 15

and

(j) by deleting section 142.

(2) Subsection (1)(i) comes into operation on such day or days asthe Minister for Finance appoints by order.

PART 3 20

Value-Added Tax

72.—In this Part ‘‘Principal Act’’ means the Value-Added TaxConsolidation Act 2010.

73.—The Principal Act is amended—

(a) in section 2(1), in the definition of ‘‘exempted activity’’, by 25substituting 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 paragraph(a): 30

‘‘(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(2A), the Minister’’ for ‘‘The Minister’’, and 35

(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 haveregard to one or both of the following:

(a) the nature or purpose, including any social pur- 40pose, of the goods or services to which therefund the subject of the order relates;

(b) the nature or purpose of the person referred toin 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 this5section, the Minister may specify requirements in theorder, to be complied with by the person referred to insubsection (1) after the refund the subject of the orderhas been paid to him or her, relating to—

(a) the carrying out of a review—10

(i) at such time, or

(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 fulfilled15in relation to that person, or in relation to thegoods or services to which such refund relates,or both, and

(b) the repayment to the Revenue Commissionersof all or part of such refund, as specified in20the requirement concerned, if, following suchreview, it is ascertained that one or more ofthose conditions—

(i) is no longer fulfilled, or

(ii) has, at any stage after such refund has25been paid to that person, temporarilyceased to be fulfilled.’’.


(a) in section 16 by inserting the following after subsection (4):

‘‘(5) (a) In this subsection ‘construction work’, in30relation to immovable goods, includes—

(i) construction, extension, alteration anddemolition services, and

(ii) engineering work or other operationswhich adapt those immovable goods for35materially altered use.

(b) Where an accountable person supplies con-struction work in the State to a taxable person(in this subsection referred to as a ‘recipient’)to whom the accountable person is connected40(within the meaning of section 97(3)), then—

(i) the recipient shall, in relation to such sup-plies, be an accountable person or bedeemed to be an accountable person andshall be liable to pay the tax chargeable45as if that recipient made that supply in

137

Supplies ofconstructionservices betweenconnected persons— reverse charge.

Amendment ofsection 46 (rates oftax) of PrincipalAct.

Amendment ofsection 66 (issue ofinvoices and otherdocuments) ofPrincipal Act.

138

the course or furtherance of business,and

(ii) the person who supplied the constructionwork shall not be accountable for orliable to pay such tax in respect of those 5supplies.’’,

(b) in section 19(1) by deleting paragraph (d),

(c) in section 41(4) by inserting ‘‘or (5)’’ after ‘‘section 16(3)’’,

(d) in section 59(2) by inserting the following after paragraph(ia): 10

‘‘(ib) the tax chargeable during the period, being taxfor which the recipient (within the meaning ofsection 16(5)(b)) is liable by virtue of section16(5)(b) in respect of supplies of constructionwork received by that recipient, but only 15where that recipient would be entitled to adeduction of that tax elsewhere under thissubsection if that tax had been charged tosuch recipient by an accountable person,’’,

and 20

(e) in section 66 by inserting the following after subsection(4A):

‘‘(4B) (a) Where an accountable person suppliesconstruction work to which section 16(5)(b)applies, the person shall issue a document to 25the recipient of such supplies indicating—

(i) that the recipient is liable to account forthe tax chargeable on that supply, and

(ii) such other particulars as would berequired to be included in that document 30if that document were an invoicerequired to be issued in accordance withsubsection (1) but excluding the rate atwhich the tax is chargeable and theamount of tax payable. 35

(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. 40

75.—Section 46(1)(a) of the Principal Act is amended with effectfrom 1 January 2012 by substituting ‘‘23 per cent’’ for ‘‘21 per cent’’.

76.—Section 66 of the Principal Act is amended by deleting sub-section (5).

77.—Section 84 of the Principal Act is amended—

(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 of5records or invoices or any of the other documents inrespect of which the Revenue Commissioners notify theperson concerned that retention is not required.’’.

78.—Section 95(12)(c) of the Principal Act is amended by inserting‘‘(other than a development which is a refurbishment within the10meaning of section 63(1))’’ after ‘‘development of those goods’’.

79.—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):15

‘‘(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,’’,

and20

(c) by substituting the following for paragraph (i):

‘‘(i) may, in accordance with regulations but subjectto section 113, make an assessment in onesum of—

(I) the total amount of tax which in his or her25opinion should have been paid,

(II) the total amount of tax (including a nilamount) which in accordance withsection 99(1) should have beenrefunded, or30

(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 such period,35and’’.

80.—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—40

139

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.

Interest payable incertaincircumstances.

Amendment ofsection 115(penalties generally)of Principal Act.

Amendment ofSchedule 2 (zero-rated goods andservices) toPrincipal Act.

Amendment ofSchedule 3 (goodsand serviceschargeable at thereduced rate) toPrincipal Act.

140

(a) no amount of tax was properly refundable to thatperson 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 amount 5of 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 properly 10refundable.

(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 case 15may be, the later or latest taxable period included in the periodcomprised in the notice.’’.

81.—Section 115 of the Principal Act is amended by inserting thefollowing after subsection (7A):

‘‘(7B) A person who does not comply with a requirement 20specified in an order under section 103 shall be liable to apenalty of €4,000.’’.

82.—Schedule 2 to the Principal Act is amended—

(a) in paragraph 8(1), in column (2) of Part F of Table 1, byinserting ‘‘or other’’ after ‘‘cereal’’, and 25

(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

(1) 30(2)Ingredients Weight limits for the ingredients,

as percentage of weight of flourincluded in the dough

Fats and sugars (including any Not exceeding 12% in aggregatefats and sugars contained in any 35

bread improver)

Dried fruit, vegetables, herbs and Not exceeding 10% in aggregatespices

Yeast or other leavening or No limitaerating agent, seeds, salt, malt 40extract, milk, water, gluten and

bread improver

’’.

83.—(1) Schedule 3 to the Principal Act is amended—

(a) in paragraph 1(1), in paragraph (b) of the definition of 45‘‘margin scheme supply’’, by substituting ‘‘section 89(3);’’for ‘‘section 89(3).’’,

(b) in paragraph 1(1) by inserting the following after the defini-tion of ‘‘margin scheme supply’’:

‘‘ ‘open farm’ means a facility the principal function ofwhich is the exhibition (other than on an occasional basis)of animals and agricultural activities, and such exhibition5may also include rural heritage.’’,

and

(c) in paragraph 8 by inserting the following after subpara-graph (4):

‘‘(5) Admission to an open farm (but excluding any10part of the fee for such admission which relates to goodsor services 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 2:15

‘‘PART 2A

CERTAIN SUPPLIES WITH REDUCED RATE:PARTICULAR PROVISIONS IN ACCORDANCEWITH ARTICLE 102 OF THE VAT DIRECTIVE

District heating.20

13A. The supply of district heating.’’.

(4) Subsection (3) applies as on and from 1 March 2012.

PART 4

Stamp Duties

84.—In this Part ‘‘Principal Act’’ means the Stamp Duties Consoli-25dation 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), and30

(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—35

(a) the effect of the application of that subsection would be toincrease the duty otherwise chargeable on the instru-ment, and

141


Reduction of dutychargeable on non-residential property.

Relief for clearinghouses.

Merger ofcompanies.

Amendment ofprovisions relatingto the internationalfinancial servicesindustry.

142

(b) the instrument contains a statement, in such form as theRevenue Commissioners may specify, certifying that theinstrument was executed solely in pursuance of a bindingcontract entered into before 7 December 2011.

86.—Section 75A of the Principal Act is amended— 5

(a) in subsection (1), in the definition of ‘‘recognised clearinghouse’’, by substituting the following for paragraph (c):

‘‘(c) SIX x-clear AG, or’’,

and

(b) in subsection (3) by inserting the following after paragraph 10(d):

‘‘(da) from a recognised clearing house or a nomineeof a recognised clearing house, to anotherrecognised clearing house or a nominee of thatrecognised clearing house,’’. 15

87.—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 Regulation2(1) of the European Communities (Cross-Border Mergers) 20Regulations 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);

‘SE’ means a European public limited-liability company 25(Societas Europaea or SE) as provided for by the SERegulation;

‘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; 30

‘SE Regulation’ means Council Regulation (EC) No. 2157/2001of 8 October 20011 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 35merger, a cross-border merger or an SE merger.’’.


(a) in section 1(1) by substituting the following for the defini-tion of ‘‘stock’’:

1OJ No. L294, 10.11.2001, p.1

‘‘ ‘stock’ includes any share in any stocks or funds trans-ferable at the Bank of England or at the Bank of Irelandand any share in the stocks or funds of any foreign stateor government, or in the capital stock or funded debt ofany county council, corporation, company, or society in5the State, or of any foreign corporation, company, orsociety and includes any option over any share in suchstocks or funds;’’,

(b) by inserting the following after section 82B:

‘‘Pension 82C.—(1) In this section—10schemes andcharities.

‘Act of 1997’ means the Taxes ConsolidationAct 1997;

‘charity’ means a body of persons or a trust15established for charitable purposes only;

‘common contractual fund’ has the meaninggiven to it by section 739I(1)(a)(i) of the Actof 1997;

‘investment undertaking’ has the meaning20given to it by section 739B(1) of the Act of1997;

‘pension scheme’ means—

(a) a retirement benefits scheme, withinthe meaning of section 771 of the25Act of 1997, approved by theCommissioners for the purposesof Chapter 1 of Part 30 of thatAct,

(b) an annuity contract or a trust30scheme or part of a trust schemeapproved by the Commissionersunder section 784 of the Act of1997,

(c) a PRSA contract, within the mean-35ing of section 787A of the Act of1997, in respect of a PRSA prod-uct, within the meaning of thatsection,

(d) an approved retirement fund within40the meaning of section 784A ofthe Act of 1997,

(e) an approved minimum retirementfund within the meaning ofsection 784C of the Act of 1997,45or

(f) a scheme within the meaning ofsection 790B of the Act of 1997;

‘specified fund’ means a common contractualfund, investment undertaking, unit linked life50fund, or unit trust, all the issued units or

143

144

shares of which are assets such that if thoseassets were disposed of by the unit holderor shareholder any gain accruing would bewholly exempt from capital gains tax(otherwise than by reason of residence); 5

‘unit linked life fund’ means a fund in whichassets are held by an assurance company forthe purposes of its new basis business;

‘unit trust’ means a unit trust to which sub-section (5)(a)(i) of section 731 of the Act of 101997 applies;

‘assurance company’ and ‘new basis business’have the meanings given to them respectivelyby section 730A of the Act of 1997.

(2) Stamp duty shall not be chargeable on 15any instrument made for the purposes of atransfer of property—

(a) held by or for the benefit of a pen-sion scheme or a charity, in cir-cumstances where the property 20continues to be so held after thetransfer has taken place,

(b) held by or for the benefit of a pen-sion scheme or a charity to aspecified fund, in circumstances 25where the specified fund issuesunits or shares to be held by orfor the benefit of the pensionscheme or the charity,

(c) held by a specified fund to or for 30the benefit of a pension schemeor charity, or

(d) held by a specified fund (in thisparagraph referred to as a ‘trans-ferring fund’) to another speci- 35fied fund (in this paragraphreferred to as a ‘receiving fund’)in circumstances where thereceiving fund issues units orshares to— 40

(i) the transferring fund, or

(ii) the unit holders or share-holders in the transferringfund in respect of and in pro-portion to (or as nearly as 45they may be in proportionto) their holdings of units orshares in the transferringfund,

to be held by or for the benefit of 50the pension scheme or thecharity.’’,

(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’’,

(e) in section 88B by substituting the following for subsection(2):5

‘‘(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 domesticfund, being an arrangement entered into for the purposesof or in connection with a scheme of reconstruction or10amalgamation under which—

(a) the foreign fund transfers assets to the domesticfund and the domestic fund—

(i) issues units to persons who hold units inthe foreign fund in respect of and in pro-15portion to (or as nearly as may be in pro-portion to) their holdings of units in theforeign fund, or

(ii) issues units directly to the foreign fund,

or20

(b) the domestic fund transfers assets to the foreignfund and the foreign fund—

(i) issues units to persons who hold units inthe domestic fund in respect of and inproportion to (or as nearly as may be in25proportion to) their holdings of units inthe domestic fund, or

(ii) issues units directly to the domesticfund.’’,

(f) by inserting the following after section 88E:30

‘‘Reconstruction 88F.—Stamp duty shall not be charge-or able on any instrument made for the pur-amalgamation

poses of or in connection with—35 of offshorefunds. (a) a scheme of reconstruction or

amalgamation of an offshorefund to which section 747F of40the Taxes Consolidation Act1997 refers, or

(b) an exchange referred to in para-graph (b) of section 747E(1A)of the Taxes Consolidation Act451997.’’,

(g) by inserting the following after section 88F (inserted byparagraph (f)):

‘‘Amalgamation 88G.—Stamp duty shall not be charge-of unit trusts.50 able on any instrument made for the pur-

poses of or in connection with a scheme ofamalgamation to which section 739D(8C)

145

Carbon offsets.

GrangegormanDevelopmentAgency.

Levies on certaininstitutions.

146

of the Taxes Consolidation Act 1997refers.’’,

(h) in section 90(2)(g)(ii) by substituting ‘‘a lease or an interestin a lease,’’ for ‘‘a lease,’’, and

(i) in section 98(2) by substituting the following for paragraph 5(b):

‘‘(b) the stocks or marketable securities of a com-pany, other than a company which is aninvestment undertaking within the meaning ofsection 739B of the Taxes Consolidation Act 101997, which is registered in the State.’’.

(2) Subsection (1)(b) has effect in respect of instruments executedon or after 8 February 2012.

89.—Section 90A of the Principal Act is amended by substitutingthe following for subsection (1): 15

‘‘(1) In this section ‘greenhouse gas emissions allowance’means carbon offsets within the meaning of section 110(1) ofthe Taxes Consolidation Act 1997.’’.

90.—The Principal Act is amended by inserting the following aftersection 106B: 20

‘‘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.’’.

91.—(1) Section 125 of the Principal Act is amended in subsection(2) by substituting ‘‘25 days’’ for ‘‘30 days’’. 25

(2) Section 125A of the Principal Act is amended—

(a) in subsection (1), in the definition of ‘‘insured person’’, bysubstituting ‘‘spouse or civil partner’’ for ‘‘spouse’’ ineach place,

(b) in subsection (1), in the definition of ‘‘relevant contract’’, 30by substituting ‘‘spouse or civil partner’’ for ‘‘spouse’’ ineach place,

(c) by substituting the following for subsection (3):

‘‘(3) There shall be charged on every statement deliv-ered by an authorised insurer pursuant to subsection (2) 35a stamp duty at the rate of—

(a) where the relevant contract was renewed orentered into before 1 January 2010—

(i) €53 in respect of each insured person agedless than 18 years, and 40

(ii) €160 in respect of each insured personaged 18 years or over,

(b) where the relevant contract was renewed orentered into on or after 1 January 2010 andbefore 1 January 2011—

(i) €55 in respect of each insured person agedless than 18 years, and5


(c) where the relevant contract was renewed orentered into on or after 1 January 2011 andbefore 1 January 2012—10

(i) €66 in respect of each insured person agedless than 18 years, and


and15

(d) where the relevant contract was renewed orentered into on or after 1 January 2012—

(i) €95 in respect of each insured person agedless than 18 years, and

(ii) €285 in respect of each insured person20aged 18 years or over,

included in the statement.’’,

and

(d) by deleting subsection (12).

(3) Section 125B(1) of the Principal Act is amended in the defini-25tion of ‘‘scheme’’ by substituting the following for subparagraphs (i)and (ii) of paragraph (a):

‘‘(i) approved by the Commissioners for the purposes ofChapter 1 of Part 30 of that Act, or

(ii) approved by the Commissioners under any other enact-30ment (including an enactment that is repealed) andin respect of which the provisions of Chapter 1 ofPart 30 of the Act of 1997 were applied,’’.

(4) Section 126B(1) of the Principal Act is amended—

(a) in the definition of ‘‘relevant person’’ by substituting the35following for paragraphs (d) and (e):

‘‘(d) an insurer within the meaning of section 124B,

(e) an insurer within the meaning of section 125,

(f) an authorised insurer within the meaning ofsection 125A, or40

(g) a chargeable person within the meaning ofsection 125B;’’,

147

148

and

(b) in the definition of ‘‘specified section’’ by substituting ‘‘125,125A’’ for ‘‘125’’.

(5) The Principal Act is further amended with effect from 1 Janu-ary 2013 by substituting the following for section 125A: 5


‘accounting period’ means—

(a) the period of 7 months commencing on 1 January 2013and ending on 31 July 2013, and

(b) each subsequent period of 12 months commencing on 101 August and ending on 31 July;

‘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- 15tract’ but, in relation to an individual, also means any undertak-ing (not being a restricted membership undertaking) authorisedpursuant to Council Directive No. 73/239/EEC of 24 July 19731,Council Directive No. 88/357/EEC of 22 June 19882, and CouncilDirective No. 92/49/EEC of 18 June 19923, where such a contract 20was effected with the individual when the individual was notresident in the State but was resident in another Member Stateof the European Communities;

‘due date’, in relation to an accounting period, means 21 Sep-tember immediately following the end of the accounting period; 25

‘excluded contract of insurance’ means—

(a) a contract of insurance which comes within the meaningof paragraph (d) of the definition of ‘healthinsurance contract’ in section 2(1) of the HealthInsurance Act 1994, or 30

(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 in 35section 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 relevant 40contract 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 45excluded contract of insurance) which provides for the making

1OJ No. L228, 16.08.1973, p.32OJ No. L172, 04.07.1988, p.13OJ No. L228, 11.08.1992, p.1

of 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, providesspecifically, whether in conjunction with other benefits or not,5for 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 insection 2(1) of the Health Insurance Act 1994;10

‘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 orover.15

(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—

(a) aged less than 18 years on 1 January in the accounting20period, and

(b) aged 18 years or over in the accounting period,

in respect of whom a relevant contract between the authorisedinsurer and the insured person, being the individual referred toin the definition of ‘insured person’, is renewed, or entered into,25during the accounting period concerned.

(3) There shall be charged on every statement delivered byan authorised insurer pursuant to subsection (2) a stamp duty inrespect of each insured person at the specified rate.

(4) The duty charged by subsection (3) on a statement deliv-30ered 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 anauthorised insurer such particulars as the Commissioners maydeem necessary in relation to any statement required by this35section to be delivered by the authorised insurer.

(6) In the case of failure by an authorised insurer in respectof an accounting period—

(a) to deliver not later than the due date any statementrequired by subsection (2) to be delivered by the40authorised insurer, or

(b) to pay the stamp duty chargeable on any such statementon the delivery of the statement,

the authorised insurer shall—

(i) from that due date until the day on which the stamp45duty is paid, be liable to pay, in addition to the duty,

149

150

interest 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 due 5date—

(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 subsection 10(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 the 15‘successor’) acquires the whole, or substantially thewhole, of the business,

then—

(i) the authorised insurer is not required to deliver the first-mentioned statement, and 20

(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) 25(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- 30ment 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, 35

(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 the 40Succession 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.

(9) The stamp duty, interest and any penalty payable under 45this 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.

(10) Where an insured person, being the individual referred 50to in the definition of ‘insured person’, shows to the satisfaction

of 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’) withwhom that individual renewed, or entered into, a relevant con-tract during an accounting period, was required to include that5insured 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 theindividual entered into a later relevant contract during the sameaccounting period, may exclude such insured person from the10statement to be delivered pursuant to subsection (2) to the Com-missioners by the second authorised insurer in respect of thesame accounting period.

(11) Where an insured person, being an insured person undera relevant contract who is not the individual referred to in the15definition 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’)that another authorised insurer (in this subsection referred to asthe ‘first authorised insurer’) with whom that person was an20insured 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 toinclude that insured person in a statement to be delivered pursu-ant to subsection (2) to the Commissioners for the same25accounting period, then the second authorised insurer, withwhom the insured person entered into a relevant contract duringthe same accounting period, may exclude such insured personfrom the statement to be delivered pursuant to subsection (2) tothe Commissioners by the second authorised insurer in respect30of the same accounting period.

(12) Where—

(a) a relevant contract is renewed or entered into by anindividual referred to in the definition of ‘insuredperson’ during an accounting period (in this subsec-35tion referred to as the ‘initial accounting period’),and

(b) the relevant contract is for a period of more than 12months,

then, without prejudice to the treatment to be accorded to the40relevant contract and the initial accounting period by subsection(2), the relevant contract shall be deemed, for the purposes ofthis section, to be renewed during—

(i) the accounting period which immediately succeeds theinitial accounting period if the second 12 months, or45lesser period, of the relevant contract commencesduring such immediately succeeding accountingperiod, and

(ii) each further accounting period where any subsequent12 months, or lesser period, of the relevant contract50commences 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 immediatelybefore that date, continues to apply to any duty payable in respectof any such accounting period.55

151

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.


Amendment ofSchedule 2(computation oftax) to PrincipalAct.

Amendment ofsection 2(interpretation) ofPrincipal Act.

152

92.—Schedule 2B to the Principal Act is amended in paragraph 1by substituting the following for subparagraph (k):

‘‘(k) Level 6 Advanced Certificate in Horsemanship;

(l) Level 6 Specific Purpose Certificate in Farm Admin-istration.’’. 5

93.—(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 instrumentsfirst executed on or after such date as the Minister by order specifiesand, accordingly, the provisions of the Principal Act, as they applied 10to instruments first executed before that date, continue to apply toinstruments first executed before that date.

PART 5

Capital Acquisitions Tax

94.—In this Part ‘‘Principal Act’’ means the Capital Acquisitions 15Tax Consolidation Act 2003.

95.—(1) The Principal Act is amended in paragraph 1 of Part 1 ofSchedule 2 in the definition of ‘‘group threshold’’—

(a) in subparagraph (a) by substituting ‘‘€250,000’’ for‘‘€244,000’’, 20

(b) in subparagraph (b) by substituting ‘‘€33,500’’ for‘‘€24,400’’, and

(c) in subparagraph (c) by substituting ‘‘€16,750’’ for ‘‘€12,200’’.

(2) The Principal Act is further amended—

(a) in paragraph 1 of Part 1 of Schedule 2 by substituting the 25following for the definition of ‘‘threshold amount’’:

‘‘ ‘threshold amount’, in relation to the computation oftax on any aggregate of taxable values under paragraph3, means the group threshold that applies in relation toall of the taxable gifts and taxable inheritances included 30in that aggregate.’’,

and

(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 after 357 December 2011.

96.—(1) Section 2(1) of the Principal Act is amended by substitut-ing 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 Act 40

2010 or the subject of an intercountry adoptioneffected outside the State and recognised underthat Act;’’.

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

97.—(1) The Principal Act is amended—5

(a) in section 2 by inserting the following after subsection (1):

‘‘(1A) For the purposes of the definition of ‘discretion-ary trust’ in subsection (1), any entity which is similarin its effect to a discretionary trust shall be treated as adiscretionary trust irrespective of how it is described in10the place where it is established.

(1B) Any reference in this Act to trustees in relationto a discretionary trust shall be deemed to includepersons acting in a similar capacity to trustees in relationto an entity referred to in subsection (1A).’’,15

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

‘‘(1A) For the purposes of this section and section 20,where 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 trust20on the date of death of that person.’’,

(c) in section 18 in the definition of ‘‘relevant period’’ in subsec-tion (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 appropriate25trust’’ in subsection (1) and by inserting the followingbefore the definition of ‘‘earlier relevant inheritance’’:

‘‘ ‘appropriate trust’, in relation to a relevant inheritance,means the trust by which that inheritance was deemed tobe taken;’’,30

(e) in section 18 by deleting the definition of ‘‘will trustrelevant inheritance’’,

(f) in section 18 by substituting the following for subsection (3):

‘‘(3) Where, in the case of each earlier relevantinheritance, each settled relevant inheritance or each35later relevant inheritance, as the case may be, taken fromthe same disponer, one or more objects of the appropri-ate trust became beneficially entitled in possession beforethe expiration of the relevant period to an absoluteinterest in the entire of the property of which that inherit-40ance consisted on and at all times after the date of thatinheritance (other than property which ceased to be sub-ject to the terms of the appropriate trust by virtue of asale or exchange of an absolute interest in that propertyfor full consideration in money or money’s worth), then,45in relation to all such earlier relevant inheritances, allsuch settled relevant inheritances or all such later

153

Amendment ofprovisions relatingto discretionarytrusts.

Amendment ofsection 36(dispositionsinvolving powers ofappointment) ofPrincipal Act.

154

relevant inheritances, as the case may be, the tax sochargeable is computed at the rate of 3 per cent.’’,

and

(g) in section 21 by substituting the following for paragraph (b):

‘‘(b) (i) subject to subparagraph (ii), the valuation 5date of the taxable inheritance is therelevant chargeable date,

(ii) where—

(I) a charge for tax arises on a particulardate by reason of section 15 or 10section 118 (in so far as that sectionrelates to a provision repealed bythis Act that corresponds to section15), giving rise to a taxable inherit-ance (in this subparagraph referred 15to as the ‘first taxable inheritance’),

(II) on a later date, a charge for tax arisesunder or in consequence of the samedisposition by reason of section 20giving rise to a taxable inheritance 20(in this subparagraph referred to asthe ‘second taxable inheritance’)comprising the same property orproperty representing that property,and 25

(III) the valuation date of the first taxableinheritance is a date after thechargeable date of the second tax-able inheritance,

then the valuation date of the second taxable 30inheritance is the same date as the valuationdate of the first taxable inheritance.’’.

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

98.—(1) Section 36 of the Principal Act is amended by insertingthe following after subsection (1): 35

‘‘(1A) In subsections (1B) and (1C) ‘arrangement’ includesany agreement, understanding, scheme, transaction or series oftransactions (whether or not legally enforceable).

(1B) Notwithstanding subsection (1), where the exercise of,failure to exercise, or release of, a general power of appointment 40form 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 whichthe power was created and the person who created the powerwere the disponer. 45

(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 theavoidance of a charge to tax arising under sections 15(1) or

20(1), the grant of that general power of appointment shall notprejudice any such charge to tax.’’.

(2) This section applies to gifts and inheritances (including inherit-ances referred to in sections 15(1) and 20(1) of the Principal Act)taken on or after 8 February 2012.5

99.—(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 NationalLibrary of Ireland, the National Museum of Ireland,’’ for ‘‘the10National 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, theIrish Museum of Modern Art, the National Archives, the National15Concert 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,’’.

(3) This section applies to sales occurring on or after 8 February202012.


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

‘‘(1A) For the purpose of paragraph (a) of the defini-tion of ‘farmer’ in subsection (1), a loan secured on the25dwelling-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

(b) in subsection (4) by deleting paragraph (c).30

(2) This section applies to gifts and inheritances taken on or after8 February 2012.

101.—(1) Section 45AA of the Principal Act is amended—

(a) in subsection (1) by deleting ‘‘, and the solicitor referred toin section 48(10),’’,35


‘‘(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 thatsubsection to the same extent that those persons are40chargeable to tax under section 11.’’,

(c) in subsection (2) by inserting ‘‘and subsection (1A)’’ after‘‘subsection (1)’’,

155

Amendment ofprovisions relatingto heritageproperty.

Amendment ofsection 89(provisions relatingto agriculturalproperty) ofPrincipal Act.

Modernisation ofcapital acquisitionstax administration:miscellaneousamendments.

Amendment ofprovision relating topayment of tax andfiling return andconsequentialamendments.


156

(d) in subsections (2), (3) and (4) by inserting ‘‘and subsection(10)(a) of section 48’’ after ‘‘subsection (1)(a)’’ in eachplace it occurs, and

(e) in subsection (4) by substituting ‘‘paragraph (b) of that sub-section and subsection (10)(a) of section 48’’ for ‘‘para- 5graph (b) of that subsection’’.

(2) Section 46 of the Principal Act is amended by inserting thefollowing 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 within 104 months of the valuation date of such inheritances.’’,

(3) Section 51 of the Principal Act is amended by substituting thefollowing 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, 15notwithstanding that the payment may be conditional or that theassessment of tax is incorrect.’’.

(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 20‘‘commencing on the valuation date or the date of payment of thetax concerned (where that tax has been paid within 4 months afterthe valuation date).’’.

(5) Part 1 of Schedule 2 to the Principal Act is amended by delet-ing paragraph 5. 25

(6) Notwithstanding subsection (4) of section 147 of the FinanceAct 2010, subsection (1)(p) of that section shall be deemed to haveapplied 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. 30


(a) in section 46(2A) by substituting ‘‘31 October’’ for‘‘30 September’’ in each place,

(b) in section 51(2)(a) by substituting ‘‘1 November’’ for‘‘1 October’’ in each place, and 35

(c) in section 53A(1) by substituting ‘‘31 October’’ for‘‘30 September’’ in each place.

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

PART 6

Miscellaneous 40

103.—In this Part ‘‘Principal Act’’ means the Taxes ConsolidationAct 1997.


(a) in subsection (4)(a) by substituting ‘‘Notwithstanding anyother law’’ for ‘‘Subject to paragraph (b)’’,

(b) in subsection (4) by substituting the following for para-graph (b):5

‘‘(b) Paragraph (a) shall not require the retention oflinking documents and records in respect ofwhich the inspector notifies in writing the per-son who is required to retain them that reten-tion is not required.’’,10

(c) by inserting the following after subsection (4)—

‘‘(4A) For the purposes of this section—

(a) where a company is wound up, the liquidator,and

(b) where a company is dissolved without the15appointment of a liquidator, the last directors,including any person occupying the position ofdirector by whatever name called, of thecompany,

shall keep or retain the linking documents and records of20the company for the period specified in subparagraph (i)or (ii), as appropriate, of subsection (4)(a).’’,

and

(d) in subsection (5) by substituting ‘‘Any person who fails tocomply with subsection (2), (3), (4) or (4A)’’ for ‘‘Any25person who fails to comply with subsection (2), (3) or(4)’’.

105.—Section 851A of the Principal Act is amended—

(a) in subsection (1), in the definition of ‘‘the Acts’’, byinserting the following after paragraph (a):30

‘‘(aa) the Customs Acts,’’,

and

(b) in subsection (7)(a) by substituting ‘‘taxpayer information’’for ‘‘personal information’’.

106.—The Principal Act is amended—35

(a) in section 891B(1) by deleting the definition of ‘‘collectivefund’’,

(b) in section 891B(1) in paragraph (a) of the definition of‘‘relevant payment’’ by deleting ‘‘, a collective fund’’,

(c) in section 891B(1) in the definition of ‘‘relevant person’’—40

157

Amendment ofsection 886(obligation to keepcertain records) ofPrincipal Act.

Amendment ofsection 851A(confidentiality oftaxpayerinformation) ofPrincipal Act.

Returns of certaininformation byinvestmentundertakings.

158

(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 does notcomply with’’, and 5

(e) by inserting the following after section 891B:

‘‘Returns of 891C.—(1) In this section—certaininformation

(a) ‘investment undertaking’ has the 10bysame meaning as in sectioninvestment

undertakings. 739B(1) but does not include a 15common contractual fund withinthe meaning of section 739I;

(b) ‘unit’ and ‘unit holder’ have thesame meanings respectively as insection 739B(1); 20

(c) ‘tax reference number’ has the samemeaning as in section 891B(1).

(2) A reference in this section to a regu-lation or regulations shall be construed as areference to a regulation or regulations made 25under subsection (3).

(3) The Revenue Commissioners, with theconsent of the Minister for Finance, may byregulations provide that an investmentundertaking be required— 30

(a) to make to the Revenue Com-missioners a return of infor-mation relating to units of theinvestment undertaking con-cerned by reference to such date 35or dates, other than a date before1 January 2012, as may be speci-fied in the regulations, and

(b) subject to subsection (5)(a)(vi), toinclude in any such return the tax 40reference numbers of the unitholders at that time.

(4) Information in relation to units shallnot be included in a return to be made underregulations if information in relation to such 45units is included or would be liable to beincluded in a return made in accordance withChapter 3A.


(a) the provisions of subsection (4) of 50section 891B shall apply subjectto the following modificationsand any other necessary modi-fications:

(i) in paragraph (a) by substitut-ing ‘investment undertaking’for ‘specified person’;

(ii) in paragraph (d) by substitut-ing ‘the value of units’ for5‘the kind or kinds ofrelevant payments’;

(iii) by substituting the followingfor paragraph (e):

‘(e) defining, for the purposes10of determining the unitholders or classes ofunit holders to beincluded in a return tobe made under regu-15lations, the unit holdersor classes of unitholders’;

(iv) by substituting the followingfor paragraph (f):20

‘(f) determining for the pur-poses of including unitholders in a return to bemade under regulations,the identity and place of25residence or establish-ment of a unit holder’;

(v) in paragraph (g) by substitut-ing ‘unit’ for ‘relevantpayment’;30

(vi) in paragraph (h)—

(I) by substituting the fol-lowing for subpara-graph (i):

‘(i) investment under-35takings to obtain atax reference num-ber from unitholders—

(I) with whom40they enter intocontractualrelationships,or

(II) for whom45they undertakeany transaction,

on or after a datespecified in regu-lations, which shall50not be earlier than

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Returns of paymenttransactions bypayment settlers.

160

the date such regu-lations come intoforce, for the pur-poses of includingthat number in a 5return under regu-lations, and’,

and

(II) in subparagraph (ii)—

(A) by substituting 10‘investment under-taking’ for ‘speci-fied person’ in eachplace,

(B) by substituting ‘unit 15holders’ for ‘cus-tomers’ in eachplace, and

(C) by deleting ‘wherethe relationship or 20transaction maygive rise to arelevant payment’,

and

(vii) in paragraph (k) by substitut- 25ing ‘units and the unit hold-ers’ for ‘relevant paymentsand the persons to whomsuch payments were made’,

and 30

(b) the provisions of subsections (6) and(7) of section 891B shall applysubject to the modification thatreferences in those subsections to‘person’, ‘relevant person’ or 35‘specified person’, as the casemay be, shall be construed, wherethe context admits, as referencesto ‘investment undertaking’.

(6) Every regulation made shall be laid 40before Dáil Éireann as soon as may be afterit 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, the 45regulation shall be annulled accordingly, butwithout prejudice to the validity of anythingpreviously done thereunder.’’.

107.—The Principal Act is amended by inserting the followingafter section 891C (inserted by section 106): 50

‘‘891D.—(1) In this section—

‘authorised officer’ means an officer of the Revenue Com-missioners authorised by them in writing to exercise the powersconferred by this section;

‘central organisation’ has the meaning assigned in the definition5of ‘electronic payment network’;

‘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-10ment entity who submits instructions to transfer funds to theaccount of the merchant to settle the reportable paymenttransaction;

‘electronic payment network’ means any agreement orarrangement—15

(a) which involves the establishment of accounts with abody (in this section referred to as a ‘centralorganisation’) by persons who—

(i) are unrelated to the central organisation,

(ii) provide goods or services, and20

(iii) have agreed to settle transactions for the pro-vision of such goods or services pursuant to suchagreement or arrangement,

(b) which provides for standards and mechanisms for sett-ling such transactions, and25

(c) which guarantees persons providing goods or servicespursuant 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-30vides for the issue of payment cards;

‘electronic settlement organisation’ means the central organis-ation which has the contractual obligation to make payment tomerchants of electronic network transactions;

‘merchant’ means—35

(a) in the case of a payment card transaction, any personhaving 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 accepts40payment from an electronic settlement organisationin 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;45

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‘payment card’ means any card which is issued pursuant to anagreement or arrangement which provides for—

(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- 5ment, and

(c) standards and mechanisms for settling the transactionsbetween the merchant acquirers and the personswho agree to accept such cards as payment,

and the acceptance as payment of any account number or other 10indicators associated with a payment card shall be treated forthe purposes of this section in the same manner as acceptingsuch payment card as payment;

‘payment card transaction’ means any transaction in which apayment card is accepted as payment; 15

‘payment settlement entity’ means—

(a) in the case of a payment card transaction, the merchantacquirer, and

(b) in the case of an electronic network transaction, theelectronic settlement organisation; 20

‘PPS Number’, in relation to an individual, means the individ-ual’s personal public service number (within the meaning ofsection 262 of the Social Welfare Consolidation Act 2005);

‘reportable payment transactions’ means, subject to regulations,any payment card transaction and any electronic network 25transaction;

‘services’, in relation to an electronic payment network, includesmaking arrangements directly or indirectly for persons to makevoluntary payments with or without consideration for the bene-fit, in whole or in part, of another person; 30

‘tax reference number’, in relation to a person, means—

(a) in the case of a person who is an individual, the individ-ual’s PPS Number, and

(b) in any other case—

(i) the reference number stated on any return of 35income form or notice of assessment issued tothe person by a Revenue officer, or

(ii) the registration number of that person for thepurposes of the Value-Added Tax Acts.

(2) The Revenue Commissioners may by regulations provide 40that a payment settlement entity be required—

(a) to make to the Revenue Commissioners an electronicreturn for or by reference to such year or years,other than a year earlier than 2010, of reportable

payment transactions and such other information asmay be specified in the regulations, and

(b) subject to subsection (4)(b), to include in any suchreturn the tax reference numbers of merchantsincluded in the return.5

(3) Without prejudice to the generality of subsection (2),regulations may, in particular, provide for—

(a) determining the date by which a return required to bemade under the regulations shall be made to theRevenue Commissioners,10

(b) prescribing the manner in which returns are to bemade,

(c) specifying the type of reportable payment transactionsto be included in the return,

(d) imposing an obligation on payment settlement entities15to request, on or after a date specified in regulations,a tax reference number from merchants, which dateshall not be earlier than the date such regulationscome into force, for the purposes of including thatnumber in a return under regulations,20

(e) imposing an obligation on every merchant to providethe payment settlement entity concerned with therelevant tax reference number upon request beingmade by such payment settlement entity, and

(f) specifying the details relating to the reportable payment25transactions to be included in the return, including,but not limited to, the following—

(i) account and reference numbers,

(ii) information concerning the business or serviceconducted by the merchant,30

(iii) information relating to the terminals used by themerchant, such as the number of terminals inuse, the serial numbers of such terminals andthe location of such terminals,

(iv) information relating to the merchant, including35name, address, email address and contactnumbers, and

(v) bank account information of merchants to andfrom which funds are transferred by the pay-ment settlement entity.40

(4) (a) A payment settlement entity shall make all reason-able efforts to obtain from a merchant that person’stax reference number and the merchant shall provideto the payment settlement entity his or her tax refer-ence number.45

(b) Where the tax reference number provided for the pur-poses of this section is an individual’s PPS Number,the payment settlement entity shall only use that

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Amendment ofsection 898K(specialarrangements forcertain securities) ofPrincipal Act.

164

number (as so provided) for the purpose of includingit in the return to be made under subsection (2) andfor no other purpose.

(5) An authorised officer may at all reasonable times enterany premises or place of business of a payment settlement entity 5for the purposes of—

(a) determining whether—

(i) information included in a return made by a pay-ment settlement entity was correct and com-plete, or 10

(ii) information not included in such a return wascorrectly not so included,

or

(b) examining the procedures put in place by that paymentsettlement entity for the purposes of ensuring com- 15pliance with that person’s obligations under thissection.

(6) (a) Section 898O shall apply to—

(i) a failure by a payment settlement entity todeliver a return, and to each and every such fail- 20ure, and

(ii) the making of an incorrect or incomplete return,

as it applies to a failure to deliver a return or to themaking of an incorrect or incomplete return referredto in section 898O. 25

(b) A payment settlement entity which does not complywith—

(i) the requirements of an authorised officer in theexercise or performance of the officer’s powersor duties under this section or under regu- 30lations, or

(ii) any requirement imposed on the payment settle-ment entity by regulations made under subsec-tion (2), shall be liable to a penalty of €3,000.’’.

108.—The Principal Act is amended in section 898K— 35

(a) by substituting the following for subsection (3):

‘‘(3) This section shall cease to apply as on and from31 December 2011.’’,

and

(b) by deleting subsection (4). 40

109.—Section 1077E of the Principal Act is amended in subsection(1), in the definition of ‘‘the Acts’’, by substituting ‘‘Parts 18A, 18B,18C and 18D’’ for ‘‘Parts 18A and 18B’’.

110.—Part 42 of the Principal Act is amended—

(a) in section 960A by substituting ‘‘Chapters 1B, 1C and 1D’’5for ‘‘Chapters 1B and 1C’’,

(b) in section 960B by substituting ‘‘Chapters 1B, 1C and 1D’’for ‘‘Chapters 1B and 1C’’, and

(c) by inserting the following after Chapter 1C:

‘‘Chapter 1D10

Power to require statement of affairs, security, etc.

960R.—(1) In this section—

‘asset’ includes any interest in an asset;

‘prescribed’ means prescribed by the Revenue Com-missioners;15

‘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-ition to a person of an asset shall include—

(a) the amount or value of the consideration, in20money or money‘s worth, given by the personor on the person‘s behalf for the acquisitionof the asset, together with the incidental coststo the person of the acquisition or, if the assetwas not acquired by the person, any expendi-25ture incurred by the person in acquiring theasset, and

(b) the amount of any expenditure incurred on theasset by the person or on that person’s behalffor the purpose of enhancing the value of the30asset, being expenditure reflected in the stateor nature of the asset at the specified date,and any expenditure incurred by the personin establishing, preserving or defending theperson’s title to, or to a right over, the asset.35

(3) Where tax is due and outstanding by a person andthat person has failed to discharge that tax, the Collector-General may require—

(a) that person, by notice in writing given to thatperson, and40

(b) where that person and his or her spouse or civilpartner are jointly assessed to income taxunder section 1017 or 1031C, that person’s

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Amendment ofsection 1077E(penalty fordeliberately orcarelessly makingincorrect returns,etc.) of PrincipalAct.

Power of Collector-General to requirecertain persons toprovide return ofproperty.

166

spouse or civil partner, by notice in writinggiven to the spouse or civil partner,

to deliver to the Collector-General within such timespecified in the notice or within such period as the Collec-tor-General may allow a statement of affairs in the pre- 5scribed form as at the date specified in the notice.

(4) For the purposes of subsection (3), a request inwriting by the Collector-General to clarify any mattercontained in the statement of affairs shall be deemed tobe a requirement to deliver a statement of affairs. 10

(5) In this section ‘statement of affairs‘, in relation toa notice under subsection (3), means—

(a) where the person to whom notice is given is act-ing otherwise than in a representativecapacity or as a trustee, a statement of all the 15assets wherever situated to which that personis beneficially entitled on the specified dateand all the liabilities for which that person isliable on the specified date,

(b) where the person to whom notice is given is a 20person (‘the first-mentioned person’) acting ina representative capacity for a person (‘thesecond-mentioned person’), a statement of allthe assets wherever situated to which thesecond-mentioned person is beneficially 25entitled which give rise to tax in respect ofwhich the first-mentioned person is liable in arepresentative capacity or are assets in respectof which the first-mentioned person perfor-med functions or duties in a representative 30capacity and all the liabilities for which thefirst-mentioned person is liable on the speci-fied date,

(c) where the person to whom notice is given is atrustee of a trust, a statement of all the assets 35and liabilities comprised in the trust on thespecified date, or

(d) where the person to whom notice is given is thespouse or civil partner referred to in section(3)(b), a statement of all assets wherever situ- 40ated to which that spouse or civil partner isbeneficially entitled on the specified date andall the liabilities for which that spouse or civilpartner is liable on the specified date.

(6) Any assets to which a minor child of, or a minor 45child of the civil partner of, the person referred to inparagraph (a) or (b) of subsection (3) is beneficiallyentitled shall be included in that person’s statement ofaffairs under this section where—

(a) such assets at any time before their acquisition 50by the minor child were disposed of by thatperson whether to that minor child or not, or

(b) the consideration for the acquisition of suchassets by the minor child was provideddirectly or indirectly by that person.

(7) A statement of affairs delivered under this sectionshall contain in respect of each asset included in the5statement—

(a) a full description,

(b) its location on the specified date,

(c) the cost of acquisition to the person beneficiallyentitled to that asset,10

(d) the date of acquisition,

(e) if it was acquired otherwise than by means of abargain at arm’s length, the name and addressof the person from whom it was acquired andthe consideration, if any, given to that person15in respect of its acquisition, and

(f) details of all policies of insurance (if any)whereby the risk of any kind of damage orinjury, or the loss or depreciation of the assetis insured.20

(8) A statement of affairs delivered under this sectionshall, in the case of an asset which is an interest otherthan an absolute interest, contain particulars of the titleunder which the beneficial entitlement arises.

(9) A statement of affairs delivered under this section25shall 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 beliefcorrect and complete.

(10) The Collector-General or an officer nominated by30the Revenue Commissioners may require the declarationreferred to in subsection (9) to be made on oath.’’.

111.—(1) The Principal Act is amended by inserting the followingafter section 960R (inserted by section 110):

‘‘960S.—(1) In this section—35

‘business’ means a business that was or is carried on by a com-pany or partnership and includes a business that was or is car-ried on by an individual;

‘connected person’ means a person connected with another per-son within the meaning of section 10;40

‘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 personor otherwise;

‘tax’ means—45

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Security for certaintaxes.

Order to producedocuments orprovideinformation.

168

(a) income tax deductible in accordance with Chapter 4 ofPart 42 and any regulations made under that Chapter,

(b) tax deductible in accordance with Chapter 2 of Part 18and any regulations made under that Chapter,

(c) universal social charge chargeable in accordance with 5Part 18D, or

(d) value-added tax chargeable in accordance with theValue-Added Tax Acts.

(2) The Collector-General may require a person carrying ona business to give security, or further security, of such amount 10and in such form as the Collector-General considers appropri-ate for the payment of tax that is, or may become, due fromthat person—

(a) where the person, in relation to a business that hasceased to trade, was involved in the management of 15the business and tax arose while the business was trad-ing which has not been paid in full, or

(b) in relation to the current business, where tax due tobe paid by that person has not been paid with 30 daysof the due date for payment of the tax. 20

(3) Where a requirement under subsection (2) arises, theCollector-General shall cause a notice in writing to that effectto be served on the person.

(4) Where a person is served with a notice in accordancewith subsection (3), it shall be an offence for that person to 25engage in business until such security, or further security, isprovided to the Collector-General.

(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 of 30the service of the notice, appeal the requirement of giving anysecurity under subsection (2) to the Appeal Commissioners.

(6) Where a person gives a notice of appeal in accordancewith subsection (5), subsection (4) shall not apply until theAppeal Commissioners determine the matter.’’. 35

(2) Section 1078(2) of the Principal Act is amended by insertingthe following after paragraph (f):

‘‘(fa) fails to comply with the requirement in section 960S(4),’’.

112.—The Principal Act is amended by inserting the followingafter section 908D: 40

‘‘Order to 908E.—(1) In this section and in section 908F—producedocuments or

‘authorised officer’ means an officer of the Revenueprovide 45Commissioners authorised by them in writing toinformation.exercise the powers conferred by this section;

‘relevant offence’ means—

(a) an offence under section 186 of the Cus-toms Consolidation Act 1876,

(b) an offence under section 139(5) of the Fin-ance Act 1992,

(c) an offence under section 1056, 1078 or51078A,

(d) an offence under subsection (1A), (1B) or(3) of section 102 of the Finance Act1999,

(e) an offence under section 119 of the Fin-10ance Act 2001,

(f) an offence under section 79 of the FinanceAct 2003,

(g) an offence under section 78 of the FinanceAct 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 of aparticular 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 making the30application 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 believingthat the documents are relevant to theinvestigation of the relevant offenceconcerned,

(c) there are reasonable grounds for sus-40pecting that the documents (or some ofthem) may constitute evidence of orrelating to the commission of thatrelevant offence, and

(d) there are reasonable grounds for believing45that the documents should be producedor that access to them should be given,having regard to the benefit likely to

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accrue to the investigation and anyother 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 identify andcategorise the documents to be so pro-duced in the particular manner (if any)sought in the application or in suchother manner as the judge may direct 10and to produce the documents in thatmanner, 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 making theapplication 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 to theauthorised officer having beenrequested to do so, 25

(b) there are reasonable grounds for believingthat the information is relevant to theinvestigation of the relevant offenceconcerned,

(c) there are reasonable grounds for sus- 30pecting that the information (or someof it) may constitute evidence of orrelating to the commission of thatrelevant offence, and

(d) there are reasonable grounds for believing 35that 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 authorisedofficer by answering the questionsspecified in the application or making astatement 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

(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 the ordi-nary 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 authorised officer20to examine the documents in a form inwhich they are legible and comprehen-sible, or

(c) to produce the documents to the author-ised officer in a form in which they can25be removed and in which they are, orcan be made, legible and compre-hensible.

(8) An order under this section—

(a) in so far as it may empower an authorised30officer to take away a document, or tobe given access to it, shall also haveeffect as an order empowering theofficer to make a copy of the documentand to take the copy away,35

(b) shall not confer any right to production of,or access to, any document subject tolegal professional privilege, and

(c) shall have effect notwithstanding any otherobligation as to secrecy or other restric-40tion 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 request theauthorised officer to permit the personto retain the document, or to have itreturned to the person, while the officer50takes 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 satisfied that—

(i) the document is required by the per-son for the purposes of his or her 5business or for some other legit-imate purpose, and

(ii) the person undertakes in writing—

(I) to keep the document safelyand securely, and 10

(II) when requested by the author-ised officer to do so, to furnishit to the authorised officer inconnection with any criminalproceedings for which it is 15required.

(c) A failure or refusal by a person to com-ply with an undertaking given by himor her under paragraph (b)(ii) shall notprejudice the admissibility in evidence 20in any criminal proceedings of a copy ofthe document concerned.

(10) Any documents taken away by an author-ised officer pursuant to an order under this sectionmay be retained by the officer for use as evidence 25in any criminal proceedings.

(11) A statement or admission made by a personpursuant to an order under this section shall notbe admissible as evidence in proceedings broughtagainst the person for an offence (other than an 30offence under subsection (16), (17) or (18)).

(12) (a) An order under this section providingthat documents be produced, or thataccess to them be given, by a personmay, if the judge of the District Court 35considers it appropriate to do so,require the person to furnish a certifi-cate to an authorised officer affirming—

(i) the authenticity of the documents,and 40

(ii) in the case of documents in non-leg-ible form that are reproduced inlegible form, the system and man-ner of that reproduction,

either when the documents are pro- 45duced, or access to them is given, or atsuch time thereafter as may be specifiedin the order.

(b) The Revenue Commissioners maymake regulations for the purposes of 50this subsection specifying the manner in

which documents of different types orclasses, or copies of them, may be auth-enticated.

(13) Where a person who produces documentspursuant to an order under this section claims a lien5on those documents or some of them, the pro-duction shall be without prejudice to the lien.

(14) A judge of the District Court may, on theapplication of any person to whom an order underthis section relates or an authorised officer, vary or10discharge the order.

(15) A judge of the District Court may, on theapplication of any person who is affected by anorder under this section whose request for thereturn of documents under subsection (9) has not15been acceded to, make an order regarding thereturn of the documents concerned to that personif the judge considers it appropriate to do so subjectto such conditions (if any) as the judge may direct.

(16) A person who without reasonable excuse20fails or refuses to comply with an order under thissection shall be guilty of an offence and shall beliable—

(a) on summary conviction, to a class A fineor imprisonment for a term not25exceeding 12 months or both, or

(b) on conviction on indictment, to a fine orimprisonment for a term not exceeding2 years or both.

(17) A person who, in purported compliance30with an order under this section provides infor-mation 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 be35liable—

(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 or40imprisonment for a term not exceeding2 years or both.

(18) A person who without reasonable excusefails or refuses to comply with an undertaking givenby him or her under subsection (9)(b)(ii) shall be45guilty of an offence and shall be liable on summaryconviction to a class A fine or imprisonment for aterm not exceeding 12 months or both.

(19) An application for an order under subsec-tion (2) shall be made to a judge of the District50Court who is assigned to the district court districtin which the documents sought are located or the

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person from whom the documents or informationare 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- 5tered office of the company is situated or the com-pany carries on any business.

(20) Nothing in this section shall affect the oper-ation of a provision in any other enactment underwhich a court may order a person to produce any 10documents to a person in connection with theinvestigation of an offence.

‘‘Privileged 908F.—(1) In this section ‘privileged legal material’legal means a document which, in the opinion of the 15material.

court concerned, a person is entitled to refuse toproduce or to give access to it on the grounds oflegal professional privilege.

(2) If a person refuses to produce a document or 20give access to it pursuant to an order of a judge ofthe District Court under section 908E on thegrounds that the document is privileged legalmaterial, an authorised officer may apply to a judgeof that Court for a determination as to whether the 25document is privileged legal material.

(3) A person who refuses to produce adocument or give access to it pursuant to an orderof a judge of the District Court under section 908Eon the grounds that the document is privileged 30legal material may apply to a judge of the DistrictCourt for a determination as to whether thedocument is privileged legal material.

(4) A person who refuses to produce adocument or give access to it pursuant to an order 35of a judge of the District Court under section 908Eon the grounds that the document is privilegedlegal material shall preserve the document andkeep it in a safe and secure place pending the deter-mination of an application under subsection (2) or 40(3) and shall, if it is so determined not to be privi-leged legal material, produce it in accordance withthe order.

(5) Pending the making of a final determinationof an application under subsection (2) or (3), the 45judge of the District Court may give such interimor interlocutory directions as the judge considersappropriate including, without prejudice to the gen-erality of the foregoing, in a case in which the vol-ume of documents that are the subject of the appli- 50cation is substantial, directions as to theappointment of a person with suitable legal qualifi-cations possessing the level of experience, and theindependence from any interest falling to be deter-mined between the parties concerned, that the 55judge considers to be appropriate for the purposeof—

(a) examining the documents, and

(b) preparing a report for the judge with aview to assisting or facilitating the judgein the making by him or her of his orher determination as to whether thedocuments are privileged legal material.5

(6) An application under subsection (2), (3) or(5) may, if the judge of the District Court so directs,be heard otherwise than in public.

(7) Notice of an application under subsection (2)shall be served on the person to whom the order10concerned relates and notice of an applicationunder subsection (3) shall be served on the author-ised officer who seeks to compel the production ofthe document concerned or to be given access to it.

(8) An appeal against the determination of a15judge 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 the20expeditious hearing of applications to a judge of theDistrict Court, and any appeals against the determi-nations of such a judge, under this section.’’.

113.—(1) The Principal Act is amended in the manner and to theextent specified in Schedule 4.25

(2) The Principal Act is amended by deleting Parts 39 and 41.

(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 of30section 321(2) of the Principal Act) which is an account-ing period of a company, as respects chargeable periodsthat start on or after 1 January 2013, and

(b) in a case other than that referred to in paragraph (a), asrespects the year of assessment 2013 and subsequent35years of assessment.

(5) This section does not affect the application of the provisionsof the Principal Act, which are amended or deleted by this section,as respects chargeable periods prior to those referred to in subsec-tion (4).40

114.—(1) The enactments specified in Schedule 5 are amended tothe extent and manner specified in paragraphs 1 to 5 of, and theTable to, that Schedule.

175

Modernisation ofDirect TaxesAssessing Rulesincluding rules forSelf Assessment.

Miscellaneousamendmentsrelating toadministration.

Amendment ofsection 195(exemption ofcertain earnings ofwriters, composersand artists) ofPrincipal Act.

Amendment ofsection 884 (returnsof profits) ofPrincipal Act.

176

(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-paragraphs (a) and (c) of paragraph 3 of Schedule 5 applyas respects a person appointed after the date of passing 5of this Act.

115.—Section 195 of the Principal Act is amended byinserting the following after subsection (15):

‘‘(16) (a) The Revenue Commissioners may publish, or causeto be published, the name of an individual who is 10the subject of a determination under subsection(2).

(b) Publication under paragraph (a) may, as appropri-ate, include the title or category of the work ofan individual.’’. 15


(a) in subsection (2) by substituting the following for subpara-graph (aa):

‘‘(aa) such information, accounts, statements, reportsand further particulars— 20

(i) relevant to the tax liability of the com-pany, or

(ii) otherwise relevant to the application ofthe Corporation Tax Acts to thecompany, 25

as may be required by the notice or specifiedin the prescribed form in respect of thereturn,’’,

and

(b) by inserting the following after subsection (2): 30

‘‘(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 prepareor make out accounts for a period con- 35sisting of or including the whole of thatperiod,

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 40documents, as are required to be prepared or made outunder that Act.’’.


(a) in section 216A(3A) by substituting ‘‘a child of the individ-ual or of the civil partner of the individual’’ for ‘‘a childof the individual’’,

(b) in section 286A(3) by substituting ‘‘on the death of his or5her spouse or civil partner, and that spouse or civil part-ner’’ for ‘‘on the death of his or her spouse, and thatspouse’’,

(c) in section 462(2)(b) by substituting ‘‘in the case of civil part-ners who are not living separately’’ for ‘‘in the case of10civil partners where they are not living separately andapart’’,

(d) in section 604(11) by substituting the following for para-graph (a):

‘‘(a) In this subsection ‘dependent relative’, in15relation to an individual, means a relative ofthe individual, or of the wife or husband ofthe individual, who is incapacitated by old ageor infirmity from maintaining himself or her-self, or a person, whether or not he or she is20so incapacitated, and—

(i) who is the widowed father or widowedmother of the individual or of the wife orhusband of the individual, or

(ii) who is the father or mother of the individ-25ual or of the wife or husband of the indi-vidual and is a surviving civil partner whohas not subsequently married or enteredinto another civil partnership.’’,

(e) in section 784A(4)(b)(ii) by substituting ‘‘any child of the30individual 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, widoweror surviving civil partner’’ for ‘‘widow or widower’’,

(g) in section 1031A(2) by substituting ‘‘living separately’’ for35‘‘living separately and apart’’, and

(h) in section 1031J(1) by substituting the following for thedefinition of ‘‘maintenance arrangement’’:

‘‘ ‘maintenance arrangement’ means—

(a) an order of a court under Part 5 or 12 of the40Civil Partnership and Certain Rights andObligations of Cohabitants Act 2010, or

(b) a trust, covenant, agreement, arrangement orany other act giving rise to a legally enforce-able obligation and made or done in consider-45ation or in consequence of—

177

Miscellaneousamendments: civilpartners.

Cesser of section161 of Finance Act2010.

Amendment ofsection 531AA(interpretation (Part18C)) of PrincipalAct.

178

(i) the dissolution or annulment of a civilpartnership, or

(ii) living separately in the circumstancesreferred to in section 1031A(2),

and a maintenance arrangement relates to the 5civil partnership in consideration or in con-sequence of the dissolution or annulment ofwhich, or of the living separately in the cir-cumstances referred to in section 1031A(2) towhich, the maintenance arrangement was 10made or arises;’’.

(2) The Capital Acquisitions Tax Consolidation Act 2003 isamended—

(a) in paragraph 7(3)(a)(ii) of Part 1 of Schedule 2 by substitut-ing ‘‘any spouse or civil partner of the disponer’’ for ‘‘any 15spouse of the disponer’’, and

(b) in paragraph 7(3)(b)(ii) of Part 1 of Schedule 2 by substitut-ing ‘‘any spouse or civil partner of the disponer’’ for ‘‘anyspouse of the disponer’’.

(3) (a) Subsection (1) (other than paragraph (a)) shall have effect 20as if it had come into operation for the year of assessment(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 the 25meaning of section 216A(1) of the Principal Act) arisingto 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- 30ance (within that meaning) taken on or after 1 January2011.

118.—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 2010 35and 2011.’’.

119.—(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 year 402012 and subsequent years.

120.—(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 on5Income 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 on10Income and on Capital) (Federal Republicof Germany) Order 2012 (S.I. No. 22 of2012).’’,

(iii) by inserting the following after paragraph 31:

‘‘31A. The Double Taxation Relief (Taxes on15Income and Capital Gains) (Republic ofPanama) Order 2012 (S.I. No. 25 of2012).’’,

and

(iv) by inserting the following between paragraphs 3520and 35A:

‘‘35AA. The Double Taxation Relief (Taxes onIncome) (Kingdom of Saudi Arabia)Order 2012 (S.I. No. 26 of 2012).’’,

and25

(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. No.23 of 2012).’’,30

and

(ii) by inserting the following after paragraph 9:

‘‘10. The Exchange of Information Relating toTax Matters (Republic of Vanuatu) Order2012 (S.I. No. 24 of 2012).’’.35

(2) This section applies on and from the date of the passing ofthis Act.

121.—The enactments specified in Schedule 6—

(a) are amended to the extent and in the manner specified inparagraphs 1 to 3 of that Schedule, and40

179

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.

Care andmanagement oftaxes and duties.

Short title,construction andcommencement.

180

(b) apply and come into operation in accordance with para-graph 4 of that Schedule.

122.—(1) In this section—

‘‘capital services’’ has the same meaning as it has in the principalsection; 5

‘‘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);

‘‘principal section’’ means section 22 of the Finance Act 1950. 10

(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’’.

(3) A sum of €118,068,355 to redeem borrowings in respect of 15capital 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.

(4) The fifty-ninth additional annuity shall be paid into the Capital 20Services Redemption Account in such manner and at such times inthe relevant financial year as the Minister for Finance maydetermine.

(5) Any amount of the fifty-ninth additional annuity, notexceeding €90,750,000 in any financial year, may be applied toward 25defraying 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.

123.—All taxes and duties imposed by this Act are placed under 30the care and management of the Revenue Commissioners.

124.—(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,

(b) in so far as it relates to income levy, Part 18A of the Taxes 35Consolidation Act 1997,

(c) in so far as it relates to universal social charge, Part 18D ofthe Taxes Consolidation Act 1997,

(d) in so far as it relates to corporation tax, the CorporationTax Acts, and 40

(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 tothe management of those duties.

(4) Part 3 shall be construed together with the Value-Added TaxActs.5

(5) Part 4 shall be construed together with the Stamp Duties Con-solidation Act 1999 and the enactments amending or extending thatAct.

(6) Part 5 shall be construed together with the Capital Acquis-itions Tax Consolidation Act 2003 and the enactments amending or10extending that Act.

(7) Part 6 in so far as it relates to—

(a) income tax, shall be construed together with the IncomeTax Acts,

(b) income levy, shall be construed together with Part 18A of15the Taxes Consolidation Act 1997,

(c) universal social charge, shall be construed together with Part18D of the Taxes Consolidation Act 1997,

(d) corporation tax, shall be construed together with the Cor-poration Tax Acts,20

(e) capital gains tax, shall be construed together with the Capi-tal Gains Tax Acts,

(f) customs, shall be construed together with the Customs Acts,

(g) duties of excise, shall be construed together with the statuteswhich relate to duties of excise and the management of25those duties,

(h) value-added tax, shall be construed together with the Value-Added Tax Acts,

(i) stamp duty, shall be construed together with the StampDuties Consolidation Act 1999 and the enactments30amending or extending that Act,

(j) domicile levy, shall be construed together with Part 18C ofthe Taxes Consolidation Act 1997,

(k) residential property tax, shall be construed together withPart VI of the Finance Act 1983 and the enactments35amending or extending that Part, and

(l) gift tax or inheritance tax shall be construed together withthe Capital Acquisitions Tax Consolidation Act 2003 andthe enactments amending or extending that Act.

(8) Except where otherwise expressly provided in Part 1, that Part40is deemed to have come into force and takes effect on and from 1January 2012.

(9) Except where otherwise expressly provided for, where a pro-vision of this Act is to come into operation on the making of anorder by the Minister for Finance, that provision shall come into45operation 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 differentpurposes or different provisions.

181

Section 53.

182

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—


‘‘(4) This section shall not apply to the profits of acompany for any accounting period to the extent thatthose profits consist of income which arises in the course 10of any of the following trades—

(a) non-life insurance,

(b) reinsurance, and

(c) life business, in so far as the income is attribu-table to shareholders of the company.’’, 15

and

(b) by deleting subsection (4A).

3. Principal Act is amended by deleting section 22A.

4. Section 82 of the Principal Act is amended by substituting thefollowing for subsection (3): 20

‘‘(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.’’.

5. Section 133 of the Principal Act is amended— 25

(a) in subsection (1)(a) by substituting the following for thedefinitions ‘‘agricultural society’’, ‘‘fishery society’’ and‘‘specified trade’’, respectively:

‘‘ ‘agricultural society’ means a society—

(i) in relation to which both the following conditions 30are satisfied:

(I) the number of the society’s members isnot less than 50, and

(II) all or a majority of the society’s membersare persons who are mainly engaged in 35and derive the principal part of theirincome from husbandry,

or

(ii) to which a certificate to which this subparagraphapplies has been issued; 40

‘fishery society’ means a society—

(i) in relation to which both the following conditionsare satisfied:

(I) the number of the society’s members isnot less than 20, and

(II) all or a majority of the society’s members5are persons who are mainly engaged inand derive the principal part of theirincome from fishing,

or

(ii) to which a certificate to which this subparagraph10applies has been issued;

‘specified trade’ means, subject to paragraphs (b), (d) and(e), a trade which consists wholly or mainly of the manu-facture of goods.’’,

(b) in subsection (1) by inserting the following after paragraph15(d):

‘‘(da) A certificate to which subparagraph (ii) of thedefinition of ‘agricultural society’ or subpara-graph (ii) of the definition of ‘fishery society’in paragraph (a) applies is, as the case may20be, a certificate given under—

(i) paragraph (b) or (c) of section 433(16),

(ii) paragraph (a) or (b) of section 70(2) ofthe Finance Act 1963,

(iii) paragraph (a) or (b) of section 220(2) of25the Income Tax Act 1967, or

(iv) paragraph (a) or (b) of section 18(2) of theFinance Act 1978,

and not revoked.’’,

and30

(c) in subsection (1) by deleting paragraph (e).

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):35

‘‘(4) Where, but for the deletion of sections 445 and 446,shares 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 apply40with any modifications necessary to give effect to thissubsection.’’.

8. Section 198 of the Principal Act is amended by substituting thefollowing for subsection (2):

183

184

‘‘(2) Where a company would not be chargeable to incometax in respect of interest paid in respect of a ‘relevant security’(within the meaning of section 246) in accordance with thissection but for the fact that—

(a) sections 445 and 446 have been deleted, and 5

(b) those sections referred to time limits in respect of cer-tificates to which each section related,

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 give 10effect to this subsection.’’.


(a) in subsection (3) by substituting ‘‘Where’’ for ‘‘Subject tosection 454, where’’,

(b) in subsection (3) by substituting the following for para- 15graph (a):

‘‘(a) income specified in section 21A(4),’’.

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’’, 20


‘‘(3) Where for any accounting period a companyclaims relief under this section in respect of the excess,the relevant corporation tax of the company for theaccounting period shall be reduced, in so far as the excess 25consists of relevant trading charges, by an amount deter-mined by the formula—

C x R100

where— 30

C is the amount of the relevant trading charges onincome, and

R is the rate per cent of corporation tax which, by vir-tue of section 21, applies in relation to the account-ing period.’’, 35

and


‘‘(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 (which 40shall not exceed the amount of the excess in respect ofwhich a claim under this section may be made), deter-mined by the formula—

T x 100R

where—

T is the amount by which the relevant corporation taxfor the accounting period is reduced by virtue of5subsection (3), and

R is the rate per cent of corporation tax which, by vir-tue of section 21, applies in relation to the account-ing period.

shall be treated for the purposes of the Tax Acts as10relieved 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 paidto a person whose usual place of abode is outside the State by15virtue 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,

then, notwithstanding those deletions and time limits, subsection20(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 thefollowing after subsection (9)—25

‘‘(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 shallbe made to or on the company and, accordingly this Part shall30apply 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‘‘subsection (2) or section 396A(3), 396B(2) or section 455(3)’’.35

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)’’ in40both places where it occurs.


(a) in subsection (1) by deleting the definition ‘‘a loss from thesale of goods’’,

(b) by substituting the following for subsection (3):45

185

186

‘‘(3) Where for any accounting period a companyclaims relief under this section in respect of the excess,the relevant corporation tax of the company for thataccounting period and, if the company was then carryingon the trade and the claim so requires, for preceding 5accounting periods ending within the time specified insubsection (4), shall be reduced, in so far as the excessconsists of a relevant trading loss, by an amount deter-mined by the formula—

L x R 10100

where—

L is the amount of the excess, and

R is the rate per cent of corporation tax which, by vir-tue of section 21, applies in relation to the account- 15ing period.’’.

and


‘‘(5) Where a company makes a claim for relief forany accounting period under this section in respect of any 20relevant 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 x 100 25R

where —

T is the amount by which the relevant corporation taxfor the accounting period is reduced by virtue ofsubsection (3), and 30

R is the rate per cent of corporation tax which, by vir-tue of section 21, applies in relation to the account-ing period.

shall be treated for the purposes of the Tax Acts as anamount of loss relieved against profits of that account- 35ing period.’’.

16. Section 403 of the Principal Act is amended by inserting thefollowing after subsection (8):

‘‘(8A) Where, but for the deletion of sections 445 and 446,any machinery or plant would, for the purposes of the definition 40of ‘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 orplant to which subsection (8) applies for those purposes and thissection shall apply with any modifications necessary to give 45effect to this subsection.’’.

17. Section 420A of the Principal Act is amended in subsection(3)(a)—

(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 on5income 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 relievable10loss, 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 x R15100

where—

L is an amount equal to the amount of the relievableloss, and

R is the rate per cent specified in section 21 in relation20to the accounting period.’’,

and


‘‘(4) Where for any accounting period a companyclaims relief under this section in respect of any relevant25trading loss or excess of relevant trading charges onincome, the surrendering company shall be treated ashaving surrendered, and the claimant company shall betreated as having claimed relief for, trading losses andcharges on income of an amount determined by the30formula—

T x 100R

where—

T is the amount by which the relevant corporation tax35payable for the accounting period is reduced by vir-tue of subsection (3), and

R is the rate per cent of corporation tax which, by vir-tue of section 21, applies in relation to the account-ing period.’’.40

19. Section 434 of the Principal Act is amended in subsection (5A)by 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 the45

187

188

accounting period after deducting the amount of corporation taxwhich 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. 5

21. Section 452 of the Principal Act is amended:

(a) in subsection (1) by deleting the definitions ‘‘qualified com-pany’’ and ‘‘relevant trading operations’’,

(b) by deleting subsection (3), and

(c) in subsection (4) by deleting ‘‘, (3)(b)’’. 10

22. Section 487 of the Principal Act is amended—

(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 15‘‘subparagraphs (III), (IV) and (V)’’ and ‘‘Part 35’’for ‘‘Parts 14 and 35 in paragraph (iii)’’,

and

(b) in the definition ‘‘group base tax’’ by substituting ‘‘subpara-graph (IV)’’ for ‘‘subparagraph (III), (IV)’’. 20

23. Section 701 of the Principal Act is amended in the definitionof ‘‘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): 25

‘‘(b) Where a company would be chargeable to corporationtax in respect of the profits of a life business inaccordance with subsection (2)(a) but for the factthat—

(i) section 446 has been deleted, and 30

(ii) that section referred to time limits in respectof certificates to which the section related,

then, notwithstanding that deletion and those timelimits, those profits shall be chargeable to corpor-ation tax in accordance with subsection (2)(a), and 35the other provisions of this section shall apply withany modifications necessary to give effect to thissubsection.’’.

25. Section 734 of the Principal Act is amended by substitutingthe following for subsection (1)(c): 40

‘‘(c) Where, a collective investment undertaking would notbe chargeable to tax in respect of relevant profits,but the relevant profits would be chargeable to tax

in the hands of the unit holder, including the under-taking, 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, and5

(ii) those sections referred to time limits in respectof certificates to which each section related,

then, notwithstanding those deletions and time lim-its, the collective investment undertaking shall notbe so chargeable to tax in respect of relevant profits,10but the relevant profits shall be so chargeable to taxin the hands of the unit holder, including the under-taking, to whom a relevant payment of, or out of therelevant profits is made and the other provisions ofthis section shall apply with any modifications neces-15sary to give effect to this subsection.’’.

26. Schedule 24 to the Principal Act is amended—

(a) in paragraph 4(2) by substituting ‘‘subject to subparagraphs(4) and (5)’’ for ‘‘subject to subparagraphs (3) to (5)’’,

(b) in paragraph 4(2A) by deleting ‘‘but subject to subpara-20graph (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 and 450’’,

(f) in paragraph 4(5)(b) by deleting subclauses (ii) and (iii),25

(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).

189

Section 85.

190

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 ofany property other than stocks or marketable securities or a policy 5of insurance or a policy of life insurance.’’ substitute the followingfor paragraphs (1) to (15):

‘‘(1) Where the amount or value ofthe consideration for the sale is whollyor partly attributable to residential 10property and the instrument contains astatement certifying that the consider-ation for the sale is, as the case maybe—

(a) wholly attributable to residential 15property, or

(b) partly attributable to residentialproperty,

and that the transaction effected bythat instrument does not form part of a 20larger transaction or of a series oftransactions in respect of which, hadthere been a larger transaction or a ser-ies of transactions, the amount orvalue, or the aggregate amount or 25value, of the consideration (other thanthe consideration for the sale con-cerned which is wholly or partlyattributable to residential property)would have been wholly or partly 30attributable to residential property:

for the consideration which isattributable to residential property 1 per cent of the first

€1,000,000 of theconsideration and 2 35per cent of thebalance of theconsiderationthereafter but wherethe calculation results 40in an amount whichis not a multiple of€1 the amount socalculated shall berounded down to the 45nearest €.

(2) Where paragraph (1) does notapply and the amount or value of theconsideration for the sale is wholly orpartly attributable to residential prop- 50erty and the instrument contains astatement certifying that the consider-ation for the sale is, as the case maybe—

(a) wholly attributable to residen-tial property, or

(b) partly attributable to residen-tial property,

and that the transaction effected by5that instrument forms part of a largertransaction or of a series of transactionsin respect of which the amount orvalue, or the aggregate amount orvalue, of the consideration which is10attributable to residential property isan amount equal to Y

where—

Y is the amount or value, or theaggregate amount or value, of the15consideration in respect of thelarger transaction or of the seriesof transactions which is attribu-table to residential property:

for the consideration which is20attributable to residential property Stamp duty of an

amount determinedby the formula—

A × BC25

where—

A is the amountof stamp dutythat wouldhave been30chargeableunderparagraph (1)on theamount or35value, or theaggregateamount orvalue, of theconsideration40in respect ofthe largertransaction orof the series oftransactions45which isattributableto residentialproperty hadparagraph 150applied tosuchconsideration,

B is the amount

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or value of theconsiderationfor the saleconcernedwhich is 5attributable toresidentialproperty, and

C is the amountor value, or 10the aggregateamount orvalue, of theconsiderationin respect of 15the largertransaction orof the seriesoftransactions 20which isattributable toresidentialproperty,

but where the 25calculation results inan amount which isnot a multiple of €1the amount socalculated shall be 30rounded down to thenearest €.

(3) Where paragraphs (1) and (2) donot apply and the amount or value ofthe consideration for the sale is wholly 35or partly attributable to residentialproperty:

for the consideration which isattributable to residential property 2 per cent of the

consideration but 40where the calculationresults in an amountwhich is not amultiple of €1 theamount so calculated 45shall be roundeddown to the nearest€.

(4) Where the amount or value ofthe consideration for the sale is wholly 50or partly attributable to property whichis not residential property … … 2 per cent of the

consideration whichis attributable toproperty which is not 55residential propertybut where thecalculation results in

an amount which isnot a multiple of €1the amount socalculated shall berounded down to the5nearest €.

(5) Where paragraph (4) applies inthe case of a conveyance or transfer onsale or in the case of a conveyance ortransfer operating as a voluntary dispo-10sition inter vivos—

(a) the instrument is executedprior to 1 January 2015, and

(b) the instrument contains a cer-tificate by the party to whom15the property is being conveyedor transferred to the effect thatthe person becoming entitled tothe entire beneficial interest inthe property (or, where more20than one person becomesentitled to a beneficial interestin the property, each of them)is related to the person or eachof the persons immediately25theretofore entitled to theentire beneficial interest in theproperty in one or other of thefollowing ways, that is, as a lin-eal descendant, parent, grand-30parent, step-parent, husband orwife, brother or sister of a par-ent or brother or sister, or linealdescendant of a parent, hus-band or wife or brother or sis-35ter, or is, as respects the personor each of the persons immedi-ately theretofore entitled, his orher civil partner, the civil part-ner of either of his or her par-40ents or a lineal descendant ofhis or her civil partner … a duty of an amount

equal to one-half ofthe ad valorem stampduty which, but for45the provisions of thisparagraph, would bechargeable under thisheading but wherethe calculation results50in an amount whichis not a multiple of€1 the amount socalculated shall berounded down to the55nearest €.’’.

2. In Schedule 1 of the Stamp Duties Consolidation Act 1999under the Heading ‘‘LEASE.’’ in paragraph (3) substitute the follow-ing for subparagraphs (a) and (b):

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‘‘(a) where the consideration, orany part of the consideration(other than rent), movingeither to the lessor or to anyother person, consists of any 5money, stock or security, and

(i) the amount or value ofsuch consideration forthe lease is wholly orpartly attributable to 10residential propertyand the instrumentcontains a statementcertifying that the con-sideration (other than 15rent) for the lease is, asthe case may be—

(I) wholly attributableto residentialproperty, or 20

(II) partly attributableto residentialproperty,

and that the trans-action effected by that 25instrument does notform part of a largertransaction or of a ser-ies of transactions inrespect of which, had 30there been a largertransaction or a seriesof transactions, theamount or value, or theaggregate amount or 35value, of the consider-ation (other than theconsideration for thelease concerned whichis wholly or partly 40attributable to residen-tial property and otherthan rent) would havebeen wholly or partlyattributable to residen- 45tial property:

for the considerationwhich is attributableto residential prop-erty … … … 501 per cent of the first

€1,000,000 of theconsideration and 2per cent of thebalance of theconsideration 55thereafter but wherethe calculation resultsin an amount which

is not a multiple of€1 the amount socalculated shall berounded down to thenearest €.5

(ii) the amount or value ofsuch consideration forthe lease is wholly orpartly attributable toresidential property10and the instrumentcontains a statementcertifying that the con-sideration (other thanrent) for the lease is, as15the case may be—

(I) wholly attributableto residentialproperty, or

(II) partly attributable20to residentialproperty,

and that the trans-action effected by thatinstrument forms part25of a larger transactionor of a series of trans-actions in respect ofwhich the amount orvalue, or the aggregate30amount or value, of theconsideration (otherthan rent) which isattributable to residen-tial property is an35amount equal to Y

where—

Y is the amount orvalue, or theaggregate amount40or value, of theconsideration(other than rent)in respect of thelarger transaction45or of the series oftransactions whichis attributable toresidentialproperty,50

and clause (i) does notapply:

for the consider-ation which isattributable to55

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residential prop-erty … …

Stamp duty of anamount determinedby the formula— 5

A × BC

where—

A is the amountof stamp duty 10that wouldhave beenchargeableunder clause(i) on the 15amount orvalue, or theaggregateamount orvalue, of the 20consideration(other thanrent) inrespect of thelarger 25transaction orof the seriesoftransactionswhich is 30attributableto residentialproperty hadclause (i)applied to 35suchconsideration,

B is the amountor value ofthe 40consideration(other thanrent) for theleaseconcerned 45which isattributable toresidentialproperty, and

C is the amount 50or value, orthe aggregateamount orvalue, of theconsideration 55(other thanrent) inrespect of thelarger

transaction orof the seriesoftransactionswhich is5attributable toresidentialproperty,

but where thecalculation results in10an amount which isnot a multiple of €1the amount socalculated shall berounded down to the15nearest €.

(iii) the amount or value ofsuch consideration iswholly or partlyattributable to residen-20tial property andclauses (i) and (ii) donot apply … … 2 per cent of the

consideration whichis attributable to25residential propertybut where thecalculation results inan amount which isnot a multiple of €130the amount socalculated shall berounded down to thenearest €.

(b) where the consideration, or35any part of the consideration(other than rent), movingeither to the lessor or to anyother person, consists of anymoney, stock or security, and40the amount or value of suchconsideration is wholly orpartly attributable to propertywhich is not residential prop-erty … … … …45 2 per cent of the

consideration whichis attributable toproperty which is notresidential propertybut where the50calculation results inan amount which isnot a multiple of €1the amount socalculated shall be55rounded down to thenearest €.’’.

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Section 93.

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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 thepaper return to be delivered in relation to an instrumentrequired to be stamped and where the requirement ofthis subsection is not complied with an accountable per-son shall, for the purposes of subsection (3) of this section 25or section 134A(2)(a), as the case may be, be presumed,until the contrary is proven, to have acted negligently ordeliberately, 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: 8B.—Where an accountable person fails to causefailure to an electronic return or a paper return to be delivered 35deliver

in relation to an instrument within the time specifiedreturns.in section 2(3), the accountable person or, wherethere is more than one accountable person, each 40accountable person shall incur a penalty of €3,000.

Expression 8C.—(1) In this section—of doubt.

‘the law’ has the meaning assigned to it by subsec-tion (2); 45

‘letter of expression of doubt’ means a communi-cation received in legible form which—

(a) sets out full details of the facts and circum-stances affecting the liability of an instru-ment to stamp duty, and makes reference 50

to the provisions of the law giving rise tothe doubt,

(b) identifies the amount of stamp duty in doubtin respect of the instrument to which theexpression of doubt relates,5

(c) is accompanied by supporting documentationas relevant, and

(d) is clearly identified as a letter of expressionof doubt for the purposes of this section,

and reference to ‘an expression of doubt’ shall be10construed accordingly.

(2) (a) Subject to paragraph (b), where, inrelation to an instrument, an accountableperson is in doubt as to the correct appli-cation of any enactment relating to stamp15duty (in this section referred to as ‘thelaw’) to an instrument which could—

(i) give rise to a liability to stamp duty bythat person, or

(ii) affects that person’s liability to stamp20duty or entitlement to an exemptionor a relief from stamp duty,

then the accountable person may lodge aletter of expression of doubt with theCommissioners in such manner as the25Commissioners may require.

(b) This subsection shall apply only if both—

(i) the electronic return or the paperreturn, and

(ii) the expression of doubt referred to in30paragraph (a),

are delivered to the Commissionersbefore the expiration of 30 days after theinstrument is first executed.

(3) Subject to subsection (4), where an account-35able person causes an electronic return or a paperreturn to be delivered to the Commissioners andlodges an expression of doubt relating to the instru-ment in accordance with this section, then interestcalculated in accordance with section 159D shall not40apply to any additional stamp duty arising where theCommissioners notify the person of the correct appli-cation of the law to that instrument and the returnwill not be deemed to be an incorrect return if anamended return, which includes an assessment to be45substituted for an earlier assessment, is delivered andthe additional duty is paid within 30 days of the dateon which that notification is issued.

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(4) Subsection (3) does not apply where the Com-missioners do not accept as genuine an expression ofdoubt in relation to the correct application of the lawto an instrument, and an expression of doubt shallnot be accepted as genuine in particular where the 5Commissioners—

(a) have issued general guidelines concerningthe application of the law in similar cir-cumstances,

(b) are of the opinion that the matter is other- 10wise sufficiently free from doubt as not towarrant an expression of doubt, or

(c) are of the opinion that the accountable per-son was acting with a view to the evasionor avoidance of duty. 15

(5) Where the Commissioners do not accept anexpression of doubt as genuine, they shall notify theaccountable person accordingly and the accountableperson shall, on receipt of the notification, cause anamended return that includes an assessment to be 20substituted for an earlier assessment to be deliveredand the additional duty to be paid together with anyinterest payable calculated in accordance withsection 159D.

(6) Where an accountable person is aggrieved by 25a decision of the Commissioners under subsection (5)he or she may appeal to the Appeal Commissionersin accordance with section 21(9).’’.


(a) by deleting subsections (2), (2A) and (3), and 30

(b) in subsection (4) by deleting ‘‘and penalty’’.

6. The Principal Act is amended by inserting the following aftersection 14:

‘‘Late filing 14A.—(1) In this section ‘specified return date’of return. 35means the thirtieth day after the date of the first

execution of an instrument chargeable with duty.


(a) where an accountable person deliberately orcarelessly causes the delivery of an incor- 40rect electronic return or a paper return onor before the specified return date, thatperson shall be deemed to have failed tohave delivered the return on or beforethat date unless the error in the return is 45remedied by the delivery of a correctreturn on or before that date,

(b) where an accountable person causes thedelivery of an incorrect electronic returnor a paper return on or before the speci- 50fied return date, but does so neither

deliberately nor carelessly and it comes tothat person’s notice (or, if he or she hasdied, to the notice of his or her personalrepresentative) that it is incorrect, theperson shall be deemed to have failed to5have delivered the return on or before thespecified return date unless the error inthe return is remedied by the delivery ofa correct return without unreasonabledelay, and10

(c) where an accountable person causes thedelivery of an electronic return or a paperreturn on or before the specified returndate, but the Commissioners, by reasonof being dissatisfied with any information15contained in the return, require that per-son, by notice in writing served on him orher, to deliver a statement or evidence, orfurther statement or evidence, as may berequired by them, the person shall be20deemed not to have delivered the returnon or before the specified return dateunless the person delivers the statementor evidence, or further statement or evi-dence, within the time specified in any25notice.

(3) Where an accountable person fails to cause thedelivery of an electronic return or a paper return inrelation to an instrument on or before the specifiedreturn date, the stamp duty chargeable on such30instrument shall be increased by an amount (in thissection referred to as a ‘surcharge’) equal to—

(a) 5 per cent of the amount of duty, subject toa maximum surcharge of €12,695, wherethe return is delivered before the expiry35of 2 months from the specified returndate, and

(b) 10 per cent of the amount of duty, subjectto a maximum surcharge of €63,485,where the return is not delivered before40the expiry of 2 months from the specifiedreturn date.’’.

7. The Principal Act is amended by deleting sections 15, 16 and 17.

8. Section 17A of the Principal Act is amended in paragraph (f)—

(a) in subparagraph (i), by deleting ‘‘and penalty’’, and45

(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 Com-missioners’’ for ‘‘6 years after the making or execution of theinstrument’’.50

10. Section 20 of the Principal Act is amended by substituting thefollowing for that section:

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‘‘Assessment 20.—(1) Notwithstanding subsection (2), where anof duty by electronic return or a paper return is delivered inCommiss-

relation to an instrument required to be stamped by 5ioners.means of the e-stamping system, there shall beincluded on that return an assessment of such amountof stamp duty that, to the best of the accountableperson’s knowledge, information and belief, ought to 10be charged, levied and paid on the instrument andthe accountable person shall pay, or cause to be paid,the stamp duty so assessed together with interest cal-culated in accordance with section 159D unless theCommissioners make another assessment to be sub- 15stituted for such assessment.

(2) Where an accountable person fails to cause anelectronic return or a paper return to be delivered inrelation to an instrument required to be stamped bymeans of the e-stamping system, the Commissioners 20shall make an assessment of such amount of stampduty as, to the best of their knowledge, information(including information received from a member ofthe Garda Síochána) and belief, ought to be charged,levied and paid on the instrument and an accountable 25person shall be liable for the payment of the stampduty so assessed together with interest calculated inaccordance with section 159D unless the Com-missioners make another assessment to be substi-tuted for such assessment. 30

(3) Where the Commissioners make an assessmentto be substituted for another assessment, an account-able person shall be liable for the payment of thestamp duty so assessed together with interest calcu-lated in accordance with section 159D. 35

(4) The Commissioners may require to be fur-nished with a copy of the instrument, together withsuch evidence as they may deem necessary, in orderto show to their satisfaction that the instrument hasbeen or will be correctly stamped. 40

(5) Every instrument stamped in conformity withan assessment made under this section shall beadmissible in evidence and available for all purposesnotwithstanding any objection relating to duty.

(6) An instrument which is chargeable with duty 45shall not, if it is unstamped or insufficiently stamped,be stamped otherwise than in accordance with anassessment.

(7) Nothing in this section shall authorise thestamping after its execution of any instrument which 50by law cannot be stamped after execution.

(8) The Commissioners may make such enquiriesor take such actions as they consider necessary tosatisfy themselves as to the accuracy of an electronicreturn or a paper return delivered in relation to an 55instrument required to be stamped.

(9) Where an amended electronic return or anamended paper return is delivered in relation to an

instrument required to be stamped by means of thee-stamping system, there shall be included on thatamended return an assessment to be substituted foran earlier assessment.’’.

11. Section 21 of the Principal Act is amended by substituting the5following for that section:

‘‘Right of 21.—(1) In this section—appeal ofpersons

‘Appeal Commissioners’ has the meaning assigned to10 dissatisfiedit by section 850 of the Taxes Consolidation Act 1997;with

assessmentor decision.15 ‘time for bringing an appeal’ means 30 days.

(2) An accountable person who is dissatisfied withan assessment of the Commissioners in relation to aninstrument may appeal to the Appeal Commissionersagainst the assessment and the appeal shall be heard20and determined by the Appeal Commissioners whosedetermination shall be final and conclusive unless theappeal is required to be reheard by a judge of theCircuit Court or a case is required to be stated inrelation to it for the opinion of the High Court on a25point of law.

(3) No appeal may be made against an assessmentmade on an accountable person by the Com-missioners, where the duty had been agreed betweenthe Commissioners and the accountable person, or30any person authorised by the accountable person inthat behalf, before the making of the assessment.

(4) (a) Where—

(i) an accountable person fails to causean electronic return or a paper return35to be delivered in relation to aninstrument, or

(ii) the Commissioners are not satisfiedwith the electronic return or thepaper return which has been deliv-40ered, or has received any informationas to its insufficiency,

and the Commissioners make an assess-ment in accordance with section 20, noappeal shall lie against that assessment45until such time as—

(I) in a case to which subparagraph (i)applies, an electronic return or apaper return is delivered to the Com-missioners, and50

(II) in a case to which either subparagraph(i) or (ii) applies, the accountableperson pays or has paid an amountof duty on foot of the assessmentwhich is not less than the duty which55would be payable on foot of theassessment if the assessment were

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made in all respects by reference tothe return delivered to the Com-missioners,

and the time for bringing an appealagainst the assessment shall be treated as 5commencing at the earliest date on whichboth the return has been delivered andthat amount of duty has been paid.

(b) References in this subsection to an amountof duty shall be construed as including a 10surcharge under section 14A(3) and anyamount of interest which would be dueand payable on that duty, calculated inaccordance with section 159D, at the dateof payment of the duty, together with any 15costs incurred or other amounts whichmay be charged or levied in pursuing thecollection of the duty contained in theassessment.

(5) Where an appeal is brought against an assess- 20ment made on an accountable person in relation toan instrument required to be stamped by means ofthe e-stamping system, the accountable person shallspecify in the notice of appeal—

(a) each amount or matter in the assessment 25with which the accountable person isaggrieved, and

(b) the grounds in detail of the accountableperson’s appeal as respects each suchamount or matter. 30

(6) Where, as respects an amount or matter towhich a notice of appeal relates, the notice does notcomply with subsection (5), the notice shall, in so faras it relates to that amount or matter, be invalid andthe appeal concerned shall, in so far as it relates to 35that amount or matter, be deemed not to have beenbrought.

(7) The accountable person shall not be entitled torely on any ground of appeal that is not specified inthe notice of appeal unless the Appeal Com- 40missioners, or the Judge of the Circuit Court, as thecase may be, are or is satisfied that the ground couldnot reasonably have been stated in the notice.

(8) Notwithstanding subsection (2)—

(a) any person dissatisfied with any decision of 45the Commissioners as to the value of anyland for the purpose of an assessmentunder this Act may appeal against suchdecision in the manner prescribed bysection 33 (as amended by the Property 50Values (Arbitrations and Appeals) Act1960) of the Finance (1909-10) Act 1910,and so much of Part I of that Act as

relates to appeals shall apply to an appealunder this subsection;

(b) an appeal shall not lie under subsection (2)on any question relating to the value ofany land.5

(9) An accountable person who is aggrieved by adecision of the Commissioners under section 8C(5)that an expression of doubt is not genuine may, bygiving notice in writing to the Commissioners withinthe period of 30 days after the notification of the said10decision, require the matter to be referred to theAppeal Commissioners and on the hearing of anappeal under this subsection, the Appeal Com-missioners shall have regard only to whether theexpression of doubt is genuine.15

(10) Subject to this section, Chapter 1 of Part 40(which relates to appeals) of the Taxes ConsolidationAct 1997 shall, with any necessary modifications,apply as they apply for the purpose of income tax.’’.

12. Section 29 of the Principal Act is amended—20

(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 landas the Commissioners consider appropriate having regardto the relevant information available to them’’, and25

(b) by deleting subsection (6).

13. Section 30 of the Principal Act is amended by deleting subsec-tion (3).

14. Section 33 of the Principal Act is amended in subsection (2)by substituting ‘‘In relation to an instrument chargeable with duty in30accordance with subsection (1), if on a claim made to the Com-missioners not later than 4 years from the date the instrument wasstamped by the Commissioners,’’ for ‘‘If on a claim made to theCommissioners not later than 6 years after the making or executionof an instrument chargeable with duty in accordance with subsec-35tion (1),’’.



(a) in subsection (4)(a) by deleting ‘‘, in the opinion of the40Commissioners,’’ and ‘‘or to such lower multiple, notbeing less than 5, of the open market value of the landas the Commissioners consider appropriate having regardto the relevant information available to them’’, and

(b) by deleting subsection (6).45


18. Section 71 of the Principal Act is amended by deleting para-graph (g).

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19. Section 77 of the Principal Act is amended in subsection (2)by substituting the following for paragraph (a):

‘‘(a) was made within the period of 4 years from the datethe operator-instruction referred to in section 69was made,’’. 5


(a) by deleting subsection (2),

(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- 10faction of the Commissioners that’’,

(d) in subsection (6) by deleting paragraph (b), and

(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 was 15untrue in any material particular’’.


(a) in subsection (2) by deleting ‘‘it is shown to the satisfactionof the Commissioners that’’,

(b) by deleting paragraph (a) of subsection (3), 20

(c) by deleting paragraph (b) of subsection (7), and

(d) in paragraph (a) of subsection (8) by substituting ‘‘theexemption was not properly due’’ for ‘‘any declaration orother evidence furnished in support of the claim wasuntrue in any material particular’’. 25


(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- 30nished in support of the claim was untrue in anymaterial particular’’.

23. Section 81AA of the Principal Act is amended—


‘‘(8) This section applies to any instrument which 35operates as a conveyance or transfer (whether on sale oras a voluntary disposition inter vivos) of an interest inland to a young trained farmer where it is the intention ofthe young trained farmer, or each young trained farmer ifthere is more than one, for a period of 5 years from the 40date 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), and

(c) in subsection (11) by substituting the following for para-graph (c):

‘‘(c) Where within 4 years from the date of execution5of an instrument to which this subsectionapplies, the transferee achieves the standard,the Commissioners shall, where a claim forrepayment is made to them by the transferee,or each of them if there is more than one, and10where it is the intention of such person, oreach such person, for a period of 5 years fromthe date on which the claim for repayment ismade to the Commissioners to—

(i) spend not less than 50 per cent of that15person’s normal working time,farming the land, and

(ii) retain ownership of the land,

cancel and repay such duty as would havebeen chargeable had this section applied to20the instrument when it was first presentedfor stamping.’’.


25. Section 82A of the Principal Act is amended by deleting sub-25section (3).

26. Section 82B of the Principal Act is amended by deleting para-graph (b) of subsection (2).

27. Section 83B of the Principal Act is amended by deleting sub-section (2).30

28. Section 95 of the Principal Act is amended in subsection (2)by deleting ‘‘the instrument contains a certificate to the effect that’’.


30. Section 97 of the Principal Act is amended by deleting subsec-35tion (3).

31. Section 97A of the Principal Act is amended by deleting sub-section (3).


(a) in subsection (1) by substituting ‘‘duty, including any sur-40charge incurred under section 14A(3), and interest’’ for‘‘duty, interest and penalty’’,

(b) in subsection (2) by substituting ‘‘duty, including any sur-charge incurred under section 14A(3), and interest’’ for‘‘duty, interest and penalty’’ in both places where it45occurs and by deleting ‘‘, for the duty and penalty’’,

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‘‘(3) On production to the Commissioners of anyinstrument on which any duty, including any surchargeincurred under section 14A(3), and interest has been paidunder subsection (1), together with the receipt, and an 5electronic return or a paper return has been delivered tothe Commissioners, the Commissioners shall treat theduty, including any surcharge incurred under section14A(3), and interest as paid in the e-stamping system.’’,

and 10

(d) by inserting the following after subsection (4):

‘‘(5) For the purposes of subsection (4), an instrumentthat has been stamped by means of the e-stamping systemis deemed to have been duly stamped notwithstandingany objection relating to duty.’’. 15


‘‘Obligation 128A.—(1) In this section—to retainrecords. 20

‘records’ includes books, accounts, documents, andany other data maintained manually or by any elec-tronic, photographic or other process, relating to—

(a) a liability to stamp duty, and

(b) a relief or any exemption claimed under any 25provision of this Act.

(2) Every accountable person shall retain, or causeto be retained on his or her behalf, records of thetype referred to in subsection (1) as are required toenable— 30

(a) a true return or statement to be made forthe purposes of this Act, and

(b) a claim to a relief or an exemption underany provision of this Act to be sub-stantiated. 35

(3) Any records required to be retained by virtueof this section shall be retained—

(a) in its written form, or

(b) subject to section 887(2) of the Taxes Con-solidation Act 1997, by means of any elec- 40tronic, photographic or other process.

(4) Records retained for the purposes of subsec-tions (2) and (3) shall be retained by the personrequired to retain the records for a period of 6 yearscommencing on the later of— 45

(a) the date an electronic return or a paperreturn was delivered to the Com-missioners, or

(b) the date that the duty was paid to the Com-missioners.

(5) Any person who fails to comply with subsec-tion (2), (3) or (4) in respect of the retention of anyrecords relating to a liability to stamp duty, or a relief5or an exemption, is liable to a penalty of €3,000.

Power of 128B.—(1) In this section—inspection.

‘authorised officer’ means an officer of the RevenueCommissioners authorised by them in writing to10exercise the powers conferred by this section;

‘employee’ means an employee who by virtue of hisor her employment is in a position to, or to procure—

(a) the production of the books, records orother documents,15

(b) the furnishing of information, explanationsand particulars, and

(c) the giving of all assistance, to an authorisedofficer, as may be required under subsec-tion (3);20

‘records’ has the same meaning as in section 128A;

‘relevant person’ means an accountable person and,where records are retained on his or her behalf, aperson who retains the records;

‘return’ means an electronic return or a paper return.25

(2) An authorised officer may at all reasonabletimes enter any premises or place of business of arelevant person for the purpose of auditing a return.

(3) An authorised officer may require a relevantperson or an employee of the relevant person to30produce records or other documents and to furnishinformation, explanations and particulars and to giveall assistance, which the authorised officer reasonablyrequires for the purposes of his or her audit undersubsection (2).35

(4) An authorised officer may take extracts fromor copies of all or any part of the records or otherdocuments or other material made available to himor her or require that copies of records or otherdocuments be made available to him or her, in40exercising or performing his or her powers or dutiesunder this section.

(5) An authorised officer when exercising or per-forming his or her powers or duties under this sectionshall, on request, produce his or her authorisation for45the purposes of this section.

(6) An employee of a relevant person who fails tocomply with the requirements of the authorised

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officer in the exercise or performance of the author-ised officer’s powers or duties under this section shallbe liable to a penalty of €1,265.

(7) A relevant person who fails to comply with therequirements of the authorised officer in the exercise 5or performance of the authorised officer’s powers orduties under this section shall be liable to a penaltyof €19,045 and if that failure continues a further pen-alty of €2,535 for each day on which the failurecontinues.’’. 10


(a) in subsection (1) by substituting the following for the defini-tion of ‘‘person’’:

‘‘ ‘person’ means—

(a) for the purposes of subsections (2)(b) and (4)(b), 15a system-member,

(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, 20and

(c) for the purposes of subsection (2)(d), anaccountable person where an electronicreturn or a paper return, which is required tobe delivered, is not delivered to the Com- 25missioners;’’,

(b) in subsection (2) 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): 30

‘‘(d) fails to deliver or cause to be delivered an elec-tronic return or a paper return which isrequired to be delivered to the Com-missioners,’’,

(c) in subsection (3) by deleting ‘‘and’’ in paragraph (b), by sub- 35stituting ‘‘subsection (9), and’’ for ‘‘subsection (9)’’ inparagraph (c) and by inserting the following after para-graph (c):

‘‘(d) in subsection (2) in relation to paragraph (d) ofthat subsection, shall be the amount specified 40in subsection (9A),’’,

(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): 45

‘‘(d) fails to deliver or cause to be delivered an elec-tronic return or a paper return which isrequired to be delivered to the Com-missioners,’’,

(e) by inserting the following after subsection (5):

‘‘(5A) (a) The further penalty referred to in subsec-tion (4) in relation to paragraph (d) ofthat subsection, shall be the amountspecified in subsection (9A) reduced to540 per cent.

(b) Where the person who incurred the pen-alty co-operated fully with any investi-gation or enquiry started by the Com-missioners or by a Revenue officer into10any matter occasioning a liability to dutyof that person, the further penaltyreferred to in subsection (4) in relationto paragraph (d) of that subsection, shallbe the amount specified in subsection15(9A) reduced to—

(i) 30 per cent of that amount where sub-paragraph (ii) or (iii) does not apply,

(ii) 20 per cent of that amount where aprompted qualifying disclosure has20been made by that person, or

(iii) 5 per cent of that amount where anunprompted qualifying disclosurehas been made by that person.’’,

(f) in subsection (6) by deleting ‘‘or’’ where it last occurs in25paragraph (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 an elec-tronic return or a paper return which is30required to be delivered to the Com-missioners,’’,

and

(g) by inserting the following after subsection (9):

‘‘(9A) The amount referred to in subsection (3)(d) and35in 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):

‘‘(a) the application for relief is made within the period of 440years after the stamp has been spoiled or becomeuseless or, in the case of an executed instrument,within the period of 4 years from the date the instru-ment was stamped by the Commissioners,’’.

36. Section 152 of the Principal Act is amended by substituting45the following for that section:

‘‘Allowance 152.—When any person has inadvertently used, forfor misused an instrument liable to duty, a stamp of greater valuestamps.50

than was necessary, or has inadvertently used a stamp

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for an instrument not liable to any duty, the Com-missioners may, on application made within theperiod of 4 years from the date the instrument wasstamped by the Commissioners, and on the instru-ment, if liable to duty, being stamped with the proper 5duty, cancel or allow as spoiled the stamp somisused.’’.

37. Section 154 of the Principal Act is amended by substituting ‘‘4years from the date the stamp was purchased’’ for ‘‘6 years nextpreceding the application’’. 10


‘‘Delegation. 158A.—Anything required to be done by the Com-missioners under this Act, other than the making ofregulations or an authorisation under this section, 15may be done by such officer or officers, or class ofofficer or officers, of the Commissioners as the Com-missioners authorise in writing in that behalf anddifferent officers or classes of officers may be author-ised for different purposes.’’. 20

39. Schedule 1 to the Principal Act, as amended by this Act, isamended—

(a) under the Heading ‘‘CONVEYANCE or TRANSFER onsale of any stocks or marketable securities.’’—

(i) in paragraph (1) by deleting ‘‘contains a statement 25certifying that the transaction effected by that instru-ment’’, and

(ii) in paragraph (2) by deleting ‘‘, if less than €1, berounded up to €1 and,’’ in the second column ofthat paragraph, 30

(b) under the Heading ‘‘CONVEYANCE or TRANSFER onsale of any property other than stocks or marketablesecurities or a policy of insurance or a policy of lifeassurance.’’—

(i) in paragraph (1) by deleting ‘‘the instrument contains 35a statement certifying that the consideration for saleis, as the case may be—’’, by deleting subparagraphs(a) and (b) and by deleting ‘‘and that’’,

(ii) in paragraph (2) by deleting ‘‘the instrument containsa statement certifying that the consideration for sale 40is, as the case may be—’’, by deleting subparagraphs(a) and (b) and by deleting ‘‘and that’’, and

(iii) by deleting paragraph (3),

and

(c) under the Heading ‘‘LEASE.’’ by deleting— 45

(i) in paragraph (3)(a)(i) by deleting ‘‘the instrumentcontains a statement certifying that the consideration(other than rent) for the lease is, as the case may

be—’’, 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 consideration(other than rent) for the lease is, as the case may5be—’’, by deleting subclauses (I) and (II) and bydeleting ‘‘and that’’, and

(iii) by deleting paragraph (3)(a)(iii).

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Section 113.

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SCHEDULE 4

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 under section945;

‘assessment’, other than in section 959G, means anassessment to tax that is made under the Acts and,unless the context otherwise requires, includes a 40self assessment;

‘chargeable gain’ has the same meaning as insection 545(3);

‘chargeable period’ means an accounting period ofa company or a tax year;

‘chargeable person’ means, as respects a charge-5able period, a person who is chargeable to tax forthat period, whether on that person’s own accountor on account of some other person but, asrespects income tax, does not include a person towhom subsection (1) of section 959B relates;10

‘determination of the appeal’ means a determi-nation by the Appeal Commissioners undersection 933(4), and includes an agreement referredto in section 933(3) and an assessment becomingfinal and conclusive by virtue of section 933(6);15

‘due date for the payment of an amount of pre-liminary tax’ has the meaning assigned to it byChapter 7;

‘electronic means’ includes electronic, digital,magnetic, optical, electromagnetic, biometric, pho-20tonic means of transmission of data and otherforms of related technology by means of whichdata is transmitted;

‘electronic record’ includes electronic, digital,magnetic, optical, electromagnetic, biometric, pho-25tonic means of storing data and other forms ofrelated technology by means of which data isstored;

‘precedent partner’ has the same meaning as inPart 43;30

‘prescribed form’ means a form prescribed by theRevenue Commissioners or a form used under theauthority of the Revenue Commissioners;

‘preliminary tax’ means the amount of tax which achargeable person is required to pay in accordance35with section 959AN;

‘return’ means the return which is required to beprepared and delivered in accordance with Chap-ter 3;

‘Revenue assessment’ shall be construed in40accordance with section 959C;

‘Revenue officer’ means an officer of the Rev-enue Commissioners;

‘self assessment’ means an assessment to tax madeby a chargeable person, or in relation to a charge-45able person, in accordance with Chapter 4;

‘specified provisions’ means sections 877 to 881,section 884, paragraphs (a) and (b) of section888(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 tax orcapital gains tax purposes, 31 Octoberin the tax year following that year,

(b) in relation to an accounting period of a 10company—

(i) subject to subparagraphs (ii) and(iii), the last day of the period of9 months starting on the dayimmediately following the end of 15the accounting period, but in anyevent not later than day 21 of themonth in which that period of 9months ends,

(ii) where the accounting period ends 20on or before the date the windingup of the company starts and thespecified return date in respect ofthat accounting period would,apart from this subparagraph, fall 25on 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 afterthe date the winding up started 30but in any event not later than day21 of the month in which thatperiod of 3 months ends, and

(iii) where, in relation to the account-ing period, a return is made by 35electronic means in accordancewith Chapter 6 of Part 38 and anypayment which the company isrequired to make in accordancewith the provisions of the Acts is 40made by such electronic means asare required by the RevenueCommissioners—

(I) in circumstances other thanthose referred to in subpara- 45graph (ii), the last day of theperiod of 9 months startingon the day immediately fol-lowing the end of theaccounting period, but in any 50event not later than day 23 ofthe month in which thatperiod of 9 months ends pro-vided that both the returnand the payment is made by 55that day,

(II) in the circumstances referredto in subparagraph (ii), theday which falls 3 months afterthe date the winding upstarted but in any event not5later than day 23 of themonth in which that period of3 months ends provided thatboth the return and the pay-ment is made by that day;10

‘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-able period;

‘tax’, other than in section 959G, means any15income tax, corporation tax, capital gains tax orany other levy or charge which under the Acts isplaced under the care and management of theRevenue Commissioners;

‘tax credit’ in relation to a person and an Act,20means an amount authorised by the Act to be setagainst, or deducted from, the amount of taxchargeable on the person so as to reduce theamount of tax otherwise payable by the person;

‘tax year’ means a year of assessment.25

Supplemental 959B.—(1) For the purposes of the meaninginterpretation assigned to ‘chargeable person‘ in section 959A, itprovisions.

does 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 othersources before deductions, losses,allowances and other reliefs,

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(b) who for the tax year has been excludedby a Revenue officer from the require-ments of Chapter 3 by reason of anotice given under section 959N, or

(c) who is chargeable to tax for the tax year 5by reason only of section 237, 238 or239,

but paragraph (a) shall not apply to a person whois a director or, in the case of a person to whomsection 1017 or 1031C applies, whose spouse or 10civil partner is a director (within the meaning ofsection 116) of a body corporate other than a bodycorporate which during a period of 3 years endingon 5 April in the tax year—

(i) was not entitled to any assets other than 15cash on hands, or a sum of money ondeposit within the meaning of section895, not exceeding €130,

(ii) did not carry on a trade, business or otheractivity including the making of invest- 20ments, and

(iii) did not pay charges on income within themeaning of section 243.

(2) (a) In the Acts (other than in this Part), anyreference however expressed to a per- 25son being assessed to tax, to an assess-ment being made on a person, or to aperson being charged to tax by anassessment, shall be construed asincluding a reference to a person being 30so assessed or so charged by a selfassessment made under Chapter 4.

(b) For the purposes of paragraph (a), thereference to assessment and self assess-ment includes an amended assessment 35and an amended self assessment.

(3) (a) Where any obligation or requirement isimposed on a person in any capacityunder this Part and a correspondingobligation or requirement is imposed 40on that person in another capacity, thedischarge of any one of those obli-gations or requirements shall notrelease the person from the other obli-gation or requirement. 45

(b) A person shall not in any capacity havean obligation or requirement imposedon that person under this Part byreason only that such obligation orrequirement is imposed on that person 50in any other capacity.

(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 of 959C.—(1) Any assessment made under theassessments: Acts, other that a self assessment, shall be madegeneral rules.20

by or on behalf of the Revenue Commissionersand shall be known as a ‘Revenue assessment’.

(2) A Revenue assessment shall be made by aRevenue officer.

(3) An assessment made under an Act shall be25an assessment to tax in relation to a person for achargeable period and all tax that falls to becharged on the person under the Act for thechargeable period shall be included in oneassessment.30

(4) An assessment to tax in relation to a personshall be an assessment, in accordance with theActs, for the chargeable period involved of—

(a) the amount of the income, profits or gainsor, as the case may be, chargeable35gains arising to the person for theperiod,

(b) the amount of tax chargeable on the per-son for the period,

(c) the amount of tax payable by the person40for the period, and

(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—45

(i) is due and payable by the person tothe Revenue Commissioners forthe period, or

(ii) is repayable by the Revenue Com-missioners to the person for the50period.

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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 enactment otherthan the Acts which by virtue of thatenactment 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 of 959D.—(1) The Revenue Commissioners shall 15assessments keep a record of—and generationof notices by

(a) each Revenue assessment made, and 20electronicmeans.

(b) each self assessment made by a Revenueofficer in relation to a chargeable per-son under section 959U. 25

(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— 30

(a) enters details of an assessment in accord-ance with subsection (2), and

(b) a notice of assessment in the name ofanother Revenue officer is producedor generated by electronic means, 35

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 the 40notice 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- 45duced or generated.

Notice of 959E.—(1) Where a Revenue assessment isassessment by made or a self assessment is made by a RevenueRevenue 50

officer in relation to a chargeable person underofficer.section 959U, a Revenue officer shall give noticeto the person assessed of the assessment made.

(2) Notice of an assessment, which is given by 55

a Revenue officer, may be given in writing or byelectronic means.

(3) Where a return is prepared and delivered inaccordance with section 959L by another personacting under a chargeable person’s authority, a5copy 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 Revenueofficer to a person for a chargeable period shall10include details of—

(a) the amount of the income, profits or gainsor, as the case may be, chargeablegains arising to the person for theperiod,15


(c) the amount of tax payable by the personfor the period,

(d) the balance of tax, taking account of any20amount 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 for25the period, or

(ii) is repayable by the Revenue Com-missioners to the person for theperiod,

(e) the amount of any surcharge which, under30section 1084, is required to be includedin the assessment,

(f) the name of the Revenue officer who isgiving the notice and the address of theRevenue office at which that officer is35based, and

(g) the time allowed for giving notice ofappeal against the assessment to whichthe notice relates.

(5) (a) Where an assessment relates to tax40chargeable under more than one of theActs, the notice of assessment shallidentify the amount of tax chargeableunder each of the Acts.

(b) Where by virtue of an enactment other45than the Acts, an amount due underthat enactment is to be assessed andcharged as if it were an amount ofincome tax, the notice of assessment

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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 the person 15assessed is entitled for the period;

(d) the calculation of the amount of taxchargeable on the person for theperiod;

(e) the calculation of the amount of tax pay- 20able by the person for the period;

(f) the calculation of the balance of tax pay-able by, or repayable to, the person forthe period.

Double 959F.—(1) Where it appears to the satisfaction 25assessment. of 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 assessmentas appears to them to constitute a doubleassessment.

(2) A person who, either on the person’s own 35account or on behalf of another person, has beenassessed 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 satisfaction 40of the double assessment, shall cause the assess-ment, 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- 45ment has been made and that payment has beenmade 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 of 50tax is required to be made.

(4) Where a person is aggrieved by a decisionof the Revenue Commissioners not to grant relief

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.

Transmission 959G.—(1) In this section—to Collector-General of

‘assessment’ has the same meaning as in Chapter10 particulars of1A of Part 42 and, by virtue of section 959B(2),sums to be

collected. includes a self assessment;15

‘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 or20to 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 from25which 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 Revenue30officer nominated in writing under section 960B.

Amended 959H.—For the purposes of the Acts, the otherassessment and provisions of this Chapter shall with any necessarynotice of35

modifications apply in like manner to an amendedamendedassessment and a notice of an amended assessmentassessment.as it applies to an assessment and a notice of40assessment.

Chapter 3

Chargeable Persons: Returns

Obligation to 959I.—(1) Every chargeable person shall asmake a return.45 respects a chargeable period prepare and deliver

to 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-50tion (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 shall55be 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 under

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section 879, 880 or 884 to deliver the return, as thecase may be.

(4) A chargeable person shall prepare anddeliver to the Collector-General, a return for achargeable period as required by this Chapter not- 5withstanding that the chargeable person has notreceived a notice to prepare and deliver a state-ment 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 a 10notice given under any of those provisions shalloperate so as to require a chargeable person todeliver a return for a chargeable period on a dateearlier than the specified return date for thechargeable period. 15

Requirements 959J.—In the case of a chargeable person whofor returns for is chargeable to income tax or capital gains taxincome tax

for a tax year, the return required by this Chapter 20and capitalshall include—gains tax

purposes.

(a) all such matters and particulars as would 25be required to be contained in a state-ment delivered pursuant to a noticegiven to the chargeable person undersection 877, if the period specified insuch notice were the tax year, 30

(b) where the chargeable person is an indi-vidual who is chargeable to income taxor capital gains tax for a tax year, inaddition to those matters and particu-lars referred to in paragraph (a), all 35such matters and particulars as wouldbe required to be contained in a returnfor the tax year delivered pursuant toa notice given to the chargeable personunder section 879, and 40

(c) such further particulars, including particu-lars relating to the preceding tax yearwhere the profits or gains of that pre-ceding year are determined in accord-ance with section 65(3), as may be 45required by the prescribed form.

Requirements 959K.—In the case of a chargeable person whofor returns for is chargeable to corporation tax for an accountingcorporation 50

period, the return required by this Chapter shalltax purposes.include—

(a) all such matters and particulars in relationto the accounting period as would be 55required to be contained in a returndelivered pursuant to a notice given tothe chargeable person under section884, and

(b) such further particulars as may berequired by the prescribed form.

Delivery of 959L.—(1) A return required by this Chapterreturn by may be prepared and delivered by the chargeable5person acting

person or by another person acting under theunderchargeable person’s authority in that regard.authority.10

(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-able person.

(3) A return purporting to be prepared and15delivered by or on behalf of any chargeable personshall for the purposes of the Acts be deemed tohave been prepared and delivered by that personor by that person’s authority, as the case may be,unless the contrary is proved.20

Delivery of 959M.—The precedent partner of any partner-return by ship shall—precedentpartner.25

(a) be deemed to be a chargeable person forthe purposes of this Chapter, and

(b) as respects any chargeable period, deliverto the Collector-General on or beforethe specified return date for that30chargeable period the return whichthat partner would be required todeliver for that period under section880, if notice under that section hadbeen given before that specified date.35

Exclusion from 959N.—(1) A Revenue officer may exclude aobligation to person from the application of this Chapter by giv-deliver a

ing the person a notice in writing stating that the40 return.person is excluded from its application.

(2) The notice shall have effect for such charge-able period or periods or until such chargeableperiod or until the happening of such event as is45specified in the notice.

(3) Where a person who has been given a noticeunder this section is chargeable to capital gains taxfor any chargeable period, this section shall notoperate so as to remove the person’s obligation50under this Chapter to make a return of theperson’s chargeable gains for that chargeableperiod.

Failure to 959O.—(1) Any provision of the Acts relatingdeliver a55 to the taking of any action on the failure of a per-return.

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-60son in a case where such a notice has not beengiven as if the chargeable person had been givena notice on the specified return date for thechargeable period under such one or more of

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those sections as is appropriate to the provisionin question.

(2) A certificate signed by a Revenue officerwhich certifies that he or she has examined therelevant records and that it appears from those 5records—

(a) that as respects a chargeable period anamed person is a chargeable person,and

(b) that on or before the specified return date 10for the chargeable period a return inthe prescribed form was not receivedfrom that chargeable person,

shall be evidence until the contrary is proved thatthe person so named is a chargeable person as 15respects 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-section (2) and purporting to be signed by a Rev- 20enue officer may be tendered in evidence withoutproof and shall be deemed until the contrary isproved to have been signed by such officer.

(4) Sections 1052 and 1054 shall apply to a fail-ure by a chargeable person to deliver a return in 25accordance with this Chapter as they apply to afailure to deliver a return referred to in section1052.

Expression of 959P.—(1) In this section—doubt. 30

‘law’ means one or more provisions of the Acts;

‘letter of expression of doubt’, in relation to a mat-ter, means a communication by written or elec-tronic means, as appropriate, which—

(a) sets out full details of the facts and cir- 35cumstances of the matter,

(b) specifies the doubt and the law giving riseto the doubt,

(c) identifies the amount of tax in doubt inrespect of the chargeable period to 40which the expression of doubt relates,

(d) is accompanied by supportingdocumentation as relevant, and

(e) is clearly identified as a letter ofexpression of doubt for the purposes of 45this 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 tobe contained in a return required for a chargeableperiod by this Chapter, which could—

(a) give rise to a liability to tax by that per-5son, or

(b) affect that person’s liability to tax orentitlement to an allowance,deduction, relief or tax credit,

then, the chargeable person may—10

(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 thereturn to the Collector-General, and15

(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 theCollector-General on or before the specified20return 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 thereturn by reference to the particulars included in25the 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-General for a chargeable period—30

(a) that person shall be treated as making afull and true disclosure with regard tothe matter involved, and

(b) any additional tax arising from theamendment of an assessment for the35chargeable period by a Revenueofficer to give effect to the correctapplication of the law to that mattershall be due and payable in accordancewith section 959AU(2).40

(6) Subsection (5) does not apply where a Rev-enue officer does not accept as genuine anexpression of doubt in respect of the applicationof the law to a matter, and an expression of doubtshall not be accepted as genuine in particular45where—

(a) the Revenue Commissioners have issuedgeneral guidelines concerning theapplication of the law in similar cir-cumstances,50

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(b) the officer is of the opinion that the mat-ter is otherwise sufficiently free fromdoubt as not to warrant an expressionof doubt, or

(c) the officer is of the opinion that the 5chargeable person was acting with aview to the evasion or avoidance oftax.

(7) Where a Revenue officer does not accept anexpression of doubt as genuine, he or she shall 10notify the chargeable person accordingly and anyadditional tax arising from the amendment of anassessment for the chargeable period by a Rev-enue officer to give effect to the correct appli-cation of the law to the matter involved shall be 15due and payable in accordance with section959AU(1).

(8) Where a chargeable person is aggrieved bya decision of a Revenue officer that the person’sexpression of doubt is not genuine, the provisions 20of section 949 shall apply to such decision as if itwere a determination made on a matter referredto in section 864.

Miscellaneous 959Q.—(1) (a) This Chapter does not affect the(Chapter 3). 25giving of a notice under any of

the specified provisions anddoes not remove from any per-son any obligation or require-ment imposed on the person by 30such a notice.

(b) The giving of a notice under anyof the specified provisions to aperson does not remove fromthat person any obligation to 35prepare and deliver a returnunder this Chapter.

(c) The giving by a chargeable per-son of a notice pursuant tosection 876 does not remove 40from the person an obligation toprepare and deliver a returnunder this Chapter.

(2) (a) The Collector-General may des-ignate an address for the deliv- 45ery of returns which in accord-ance with this Chapter arerequired to be delivered to theCollector-General.

(b) Where the Collector-General 50designates an address underparagraph (a), that address shallbe published in Iris Oifigiúil assoon as is practicable after suchdesignation. 55

Chapter 4

Chargeable Persons: Self-Assessments

Inclusion of 959R.—(1) Subject to sections 959S and 959T,self assessment every return prepared and delivered under Chap-5in return.

ter 3 in respect of a chargeable period shall includea self assessment by the chargeable person towhom the return relates.

(2) A self assessment shall be made in, and as10part 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-son, in accordance with the Acts, for the charge-15able period involved of—

(a) the amount of the income, profits or gainsor, as the case may be, chargeablegains arising to the person for theperiod,20


(c) the amount of tax payable by the personfor the period, and

(d) the balance of tax, taking account of any25amount 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 for30the period, or

(ii) is repayable by the Revenue Com-missioners to the person for theperiod.

(4) (a) Where a self assessment relates to tax35chargeable on a person under morethan one of the Acts, the self assess-ment shall identify the amount of taxchargeable under each of the Acts.

(b) Where by virtue of an enactment other40than the Acts, an amount due underthat enactment is to be assessed andcharged as if it were an amount ofincome tax, the self assessment shallinclude such amount and shall identify45the amount so chargeable by virtue ofthat enactment.

(c) A self assessment shall include andidentify the amount of any surchargewhich, under section 1084, is required50to be included in the assessment forthe chargeable period.

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(5) Subject to subsection (6), where the obli-gation to make a return for a chargeable period istreated as fulfilled under Chapter 6 of Part 38 andthe chargeable person—

(a) includes a self assessment in the return in 5accordance with an indicative tax cal-culation provided by the electronic sys-tem that is made available by the Rev-enue Commissioners for the purposesof that Chapter, and 10

(b) pays tax in accordance with that cal-culation,

then, in the event that the indicative tax calcu-lation is incorrect—

(i) any additional tax due for the chargeable 15period that arises by reason of theindicative tax being incorrect shall bedeemed to be due and payable notlater than one month from the date ofamendment of the self assessment, and 20

(ii) Part 47 does not apply to the extent thatthe return included a self assessmentthat was in accordance with the indica-tive tax calculation.

(6) Subsection (5) applies where the chargeable 25person 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-lation are in accordance with the information, 30statements and particulars provided in the return.

Option for self 959S.—(1) An individual who is chargeable toassessment to income tax or capital gains tax for a tax year shallbe made by 35

not be required to comply with section 959RRevenue.where a return, which is delivered by means otherthan electronic means, is delivered on or before 31August in the tax year following the tax year to 40which the return relates.

(2) Where subsection (1) applies, a Revenueofficer shall make the self assessment on behalf ofthe chargeable person in accordance with section959U. 45

Self 959T.—Where a return is prepared and deliv-assessment by ered in accordance with section 959L by anotherperson acting

person acting under the chargeable person’s 50underauthority—authority.

(a) the self assessment required under section959R shall be made by that other per- 55son, and

(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

(ii) a self assessment purporting tohave been made by or on behalf5of any chargeable person shall forthe purposes of the Acts bedeemed to have been made bythat person or by that person’sauthority, as the case may be,10unless the contrary is proved.

Self 959U.—(1) Where a chargeable person, or aassessment by person to whom section 959T applies, delivers aRevenue15

return but does not include a self assessment inofficer inthe return, a Revenue officer, subject to sectionrelation to

chargeable20 959AA(1)—person.

(a) shall, where section 959S applies, and

(b) may, in any other case,

make the self assessment in relation to the charge-25able person.

(2) Where a self assessment is made under thissection, a Revenue officer shall give notice of theassessment in accordance with section 959E.

(3) Any self assessment made by a Revenue30officer 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 aself assessment made under this section.35

Amendment 959V.—(1) Subject to the provisions of thisby chargeable section, a chargeable person may, by notice to theperson of

Revenue Commissioners, amend the return deliv-40 return and ofered by him or her for a chargeable period.self assessment

in return.

(2) Where a return is amended in accordance45with 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 thissection shall be given in writing to a Revenue50officer 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 noticeby electronic means is made available by the Rev-55enue Commissioners.

(5) Where another person, as referred to insection 959L, is acting under the chargeableperson’s authority—

(a) notice under subsections (1) and (2) may60be 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 self 959W.—(1) A self assessment made by aassessment in 35chargeable person under section 959R shall beaccordance

made by reference to the particulars contained inwith return.the chargeable person’s return for the chargeable 40period involved.

(2) A self assessment amended by a chargeableperson under section 959V shall be amended byreference to the particulars contained in thechargeable person’s return, as amended by notice 45under that section, for the chargeable periodinvolved.

(3) A self assessment made by a Revenueofficer in relation to a chargeable person undersection 959U shall be made by reference to the 50particulars contained in the chargeable person’sreturn for the chargeable period involved.

(4) Nothing in this Chapter prevents a Revenueofficer from making a Revenue assessment on achargeable person under Chapter 5 and where a 55Revenue officer makes an assessment under that

Chapter any self assessment previously madeunder 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 such5purposes.

(5) Nothing in this Chapter prevents a Revenueofficer from amending, under Chapter 5, a selfassessment previously made under this Chapter.

Penalty for 959X.—(1) A person who is required under this10failure to Chapter to make a self assessment in a return pre-make or

pared and delivered under Chapter 3 for a charge-amend self15able period and who does not make the self assess-assessment.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 related Time Limits

Chargeable 959Y.—(1) Subject to the provisions of thispersons and Chapter, a Revenue officer may at any time—30other persons:assessment

(a) make a Revenue assessment on a personmade oramended by35 for a chargeable period in such sum as,Revenue according to the officer’s bestofficer. judgment, ought to be charged on the40

person,

(b) amend a Revenue assessment on, or a selfassessment in relation to, a person fora chargeable period in such manner ashe or she considers necessary, notwith-45standing that—

(i) tax may have been paid or repaidin respect of the assessment, or

(ii) the assessment may have beenamended on a previous occasion50or on previous occasions.

(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—55

(a) may accept either in whole or in part anystatement or other particular con-tained in a return delivered by thechargeable person for that chargeableperiod, and60

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(b) may assess any amount of income, profitsor gains or, as the case may be, charge-able gains, or allow any allowance,deduction, relief or tax credit by refer-ence to such statement or particular. 5

(3) The amendment of an assessment by a Rev-enue officer does not preclude that Revenueofficer or any other Revenue officer from furtheramending the assessment in such manner as he orshe considers necessary. 10

(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 achargeable period or the tax stated in 15an assessment is less than the tax pay-able by the chargeable person for thechargeable period, then a Revenueofficer may make such amendments tothe assessment as are necessary to 20ensure that the assessment includes thecorrect amount or to ensure that thetax stated in the assessment is equal tothe tax payable by the chargeable per-son for the chargeable period. 25

(b) For the purposes of paragraph (a), theamendment of an assessment by a Rev-enue officer may include the additionof an amount of income, profits orgains or, as the case may be, charge- 30able gains that is not reflected in theassessment.

Right of 959Z.—(1) A Revenue officer may, subject toRevenue this section, make such enquiries or take such 35officer to

actions within his or her powers as he or she con-makesiders necessary to satisfy himself or herself asenquiries. 40to—

(a) whether a person is chargeable to tax fora chargeable period,

(b) whether a person is a chargeable personas respects a chargeable period, 45

(c) the amount of income, profit or gains or,as the case may be, chargeable gains inrelation to which a person is charge-able to tax for a chargeable period, or

(d) the entitlement of a person to any allow- 50ance, deduction, relief or tax credit fora chargeable period.

(2) The making of an assessment or the amend-ment of an assessment in accordance with section959Y(2) by reference to any statement or particu- 55lar referred to in paragraph (a) of that section doesnot preclude a Revenue officer from, subject tothis section, making such enquiries or taking such

actions within his or her powers as he or she con-siders necessary to satisfy himself or herself as tothe accuracy or otherwise of that statement orparticular.

(3) Subject to subsection (4), any enquiries or5actions to which either subsection (1) or (2)applies 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 which10the chargeable person has delivered a return forthe 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 chargeable15period where—

(a) any of the circumstances referred to inparagraph (a), (b) or (c) of section959AC(2) apply,

(b) a Revenue officer has reasonable grounds20for believing, in accordance withsection 959AD(3), that any form offraud or neglect has been committedby or on behalf of the person in con-nection with or in relation to tax due25for the chargeable period.

(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-30tion (3) in respect of that chargeable period, onthe 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 the35Revenue officer within 30 days of the officer mak-ing 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.40

(6) Any action required to be taken by thechargeable 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.45

(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 take50any action pursuant to the officer’s enquiry oraction and the officer shall be prohibited from pur-suing his enquiry or action.

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(8) If on the hearing of the appeal the AppealCommissioners determine that the Revenueofficer was not precluded from making the enquiryor taking action by reason of subsection (3), thenthe officer may continue with his or her enquiry 5or action.

(9) Nothing in this section affects the operationof section 811 or 811A.

Chargeable 959AA.—(1) Where a chargeable person haspersons: time 10delivered a return for a chargeable period and haslimit on

made in the return a full and true disclosure ofassessmentall material facts necessary for the making of an 15made or

amended by assessment for the chargeable period—Revenueofficer. 20(a) an assessment for that period, or

(b) an amendment of an assessment for thatperiod,

shall not be made by a Revenue officer on thechargeable person after the end of 4 years com- 25mencing 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 thatperiod of 4 years, and 30

(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,

by reason of any matter contained in the return. 35

(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 notcontain a full and true disclosure of all 40material facts necessary for the makingof an assessment for that period,

(b) to give effect to a determination on anyappeal against an assessment or againsta determination to which section 949 45applies,

(c) to take account of any fact or matter aris-ing by reason of an event occurringafter the return is delivered,

(d) to correct an error in calculation in the 50assessment, or

(e) to correct a mistake of fact whereby anymatter in the assessment does notproperly reflect the facts disclosed bythe chargeable person,

and tax shall be paid or repaid (notwithstanding5any limitation in section 865(4) on the time withinwhich a claim for a repayment of tax is requiredto be made) where appropriate in accordance withany such amendment.

(3) Nothing in this section affects the operation10of section 804(3), 811, 811A or 1048.

Persons other 959AB.—(1) Subject to the other provisions ofthan this section and section 997, a Revenue assessmentchargeable15

on a person other than a chargeable person maypersons: timebe made or amended by a Revenue officer at anylimit on

Revenue20 time not later than 4 years after the end of theassessment and chargeable period to which the assessment relates.amendedassessment.25

(2) In a case in which emoluments to which sub-section (3) applies are received in a year of assess-ment subsequent to that for which they are assess-able, a Revenue assessment on a person otherthan a chargeable person may be made or30amended by a Revenue officer at any time notlater than 4 years after the end of the year ofassessment in which the emoluments werereceived.

(3) The emoluments to which this subsection35applies are emoluments within the meaning ofsection 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,40being emoluments, payments or sums other thanthose 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)—45

(a) any such payment shall, notwithstandinganything in section 123(4), be treatedas having been received at the time itwas actually received, and

(b) any such sums which are not actually paid50to that person shall be treated as hav-ing been received at the time when therelevant expenses were incurred or aretreated for the purposes of Chapter 3of Part 5 as having been incurred.55

(4) Nothing in this section affects the operationof section 811 or 811A.

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Chargeable 959AC.—(1) In this section ‘information’persons: includes information received from a member ofRevenue

the Garda Síochána. 5assessment andamendment ofassessments in (2) Notwithstanding section 959AA, where inabsence of 10relation to a chargeable person—return, etc.

(a) the person fails to deliver a return for achargeable period,

(b) a Revenue officer is not satisfied with the 15sufficiency of a return delivered by theperson having regard to any infor-mation received in that regard, or

(c) a Revenue officer has reasonable groundsfor believing that a return delivered by 20the person does not contain a full andtrue disclosure of all material factsnecessary for the making of an assess-ment for the chargeable period,

then a Revenue officer may, at any time, make a 25Revenue assessment on the chargeable person forthe 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 Revenue 30assessment on a chargeable person under thissection 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 for 35the chargeable period on the basis on thatassessment.

(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- 40ment in relation to, a chargeable person for thechargeable period involved in such manner as theofficer considers necessary.

Chargeable 959AD.—(1) In this section ‘neglect’ meanspersons and 45negligence or a failure to give any notice, to makeother persons:

any return, statement or declaration, or to produceRevenueor furnish any list, document or other information 50assessment and

amendment of required by or under the Acts.assessmentswhere there is 55(2) For the purposes of subsection (1), a personfraud or

shall be deemed not to have failed to do anythingneglect.required to be done within a limited time if the 60person 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 65not to have failed to do it if the person did it with-out unreasonable delay after the excuse hadceased.

(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.

Other 959AE.—(1) Nothing in this Chapter preventsRevenue20 an inspector or other Revenue officer from mak-assessments

ing an assessment in accordance with—andmiscellaneous25matters. (a) section 960Q,

(b) section 977(3) or subsection (2) or (3) ofsection 978, as appropriate, and, not-withstanding Chapter 7, tax specified30in such an assessment shall be due andpayable in accordance with section 979,

(c) subsection (5A) or (6), as appropriate, ofsection 980 and, notwithstandingChapter 7, tax specified in such an35assessment shall be due and payable inaccordance with that section 980, or

(d) section 1042 and, notwithstanding Chap-ter 7, tax specified in such an assess-ment shall be due and payable in40accordance 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 timebefore the specified return date for the chargeable45period 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 oramend an assessment where a provision of the50Acts (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 andconclusive shall not for any purpose of the Acts55be 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

Chargeable 959AF.—(1) A person who is aggrieved by an 5persons and assessment made by a Revenue officer, or theother persons:

amendment of an assessment by a Revenueappeal in 10officer, on the grounds that the person considersrelation to

time limit on that the Revenue officer was precluded from mak-assessment 15ing the assessment or, as the case may be, themade or amendment—amended byRevenue 20officer. (a) in the case of a chargeable person, by

reason of section 959AA, or

(b) in the case of a person other than achargeable person, by reason of section959AB or section 997, 25

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-cluded from making the assessment or, as the case 30may 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 isvoid. 35

(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 orthe assessment as amended stands, except to the 40extent that any amount or matter in that assess-ment is the subject of a valid appeal on any othergrounds.

Chargeable 959AG.—No appeal may be made against—persons: no 45appeal against

(a) a self assessment made under sectionself959R, section 959T or section 959U,assessment. 50

(b) a self assessment amended under section959V,

(c) the amount of any income, profits or gainsor, as the case may be, chargeablegains, or the amount of any allowance, 55deduction, relief or tax credit specifiedin such an assessment.

Chargeable 959AH.—(1) Where a Revenue officer makespersons: a Revenue assessment, no appeal lies against the 60requirement to

assessment until such time as—submit returnand pay tax.

(a) where the assessment was made in default 65

of the delivery of a return, the charge-able person delivers the return, and

(b) in all cases, the chargeable person pays orhas paid an amount of tax on foot ofthe 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 a Rev-enue officer as they apply to a Revenue assess-ment made by a Revenue officer.35

Chargeable 959AI.—No appeal may be made against thepersons and amount of any income, profits or gains or, as theother persons:

case may be, chargeable gains, or the amount of40 no appealany allowance, deduction, relief or tax credit speci-against agreed

amounts. fied in an assessment or an amended assessment45made on a person for a chargeable period whereeither—

(a) a Revenue officer has determined theamount by accepting without alter-ation of and without departing from50the 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 credits55specified in the return delivered by theperson for the chargeable period, or

(b) the amount has been agreed between theRevenue officer and the person, or any

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person authorised by the person in thatbehalf, before the making of theassessment or the amendment of theassessment, as the case may be.

Chargeable 959AJ.—(1) Where an appeal is brought 5persons and against an assessment or an amended assessmentother persons:

made on a person for any chargeable period, thegrounds for 10person shall specify in the notice of appeal—appeal.

(a) each amount or matter in the assessmentor amended assessment with which theperson is aggrieved, and 15

(b) the grounds in detail of the person’sappeal as respects each such amountor matter.

(2) Where, as respects an amount or matter towhich a notice of appeal relates, the notice does 20not 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 notto have been brought. 25

(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, areor is satisfied that the ground could not reasonably 30have been stated in the notice.

Chargeable 959AK.—Subject to the other provisions of thispersons and Chapter, where an assessment is amended by aother persons: 35

Revenue officer (not being an amendment madeappeal againstby reason of the determination of an appeal), theamended

assessment. 40person 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 amendedwere a notice of the assessment, except that the 45person 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-son would have had if the assessment had not 50been amended.

Persons other 959AL.—Subject to the other provisions of thisthan Chapter, where an appeal is brought against anchargeable 55

assessment by a person who is not a chargeablepersons: otherperson then, pending the determination of therules.appeal— 60

(a) an amount of tax shall be payable on thedue date for the payment of tax underthe assessment and shall be the amountwhich results when the appropriate taxcredits (including personal tax credit 65where applicable) due to the personare allowed in calculating the taxcharged in the assessment which does

not relate to the amounts or matterswith which the person assessed isaggrieved, and

(b) that amount of tax shall for the purposesof sections 1080 and 1081 be deemed5to be the tax due and payable underthe assessment.

Chapter 7

Chargeable Persons: Preliminary Tax and Dates for Payment ofTax10

Interpretation 959AM.—(1) In this Chapter—andmiscellaneous

‘accounting period’ means an accounting period of(Chapter 7).15a company;

‘corresponding corporation tax for the precedingaccounting period’, in relation to an accountingperiod and a company, means an amount deter-mined by the formula—20

T x CP

where—

T is the corporation tax payable for the pre-ceding accounting period,25

C is the number of days in the accountingperiod, and

P is the number of days in the precedingaccounting period;

‘corresponding income tax for the preceding30accounting period’, in relation to an accountingperiod and a company, means an amount deter-mined by the formula—

I x CP35

where—

I is the income tax payable under section 239or 241 for the preceding accounting period,

C is the number of days in the accountingperiod, and40

P is the number of days in the precedingaccounting period;

‘final instalment’ shall be construed in accordancewith section 959AS(1);

‘final relevant instalment’ shall be construed in45accordance with section 959AS(5);

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‘initial instalment’ shall be construed in accord-ance with section 959AS(1);

‘initial relevant instalment’ shall be construed inaccordance with section 959AS(5);

‘pre-preceding tax year’, in relation to income tax 5and a tax year, means the tax year next before thepreceding tax year;

‘relevant accounting period’, in relation to anaccounting period, means, subject to subsection(2), an accounting period of a company other than 10a small company;

‘relevant accounting standards’ has the samemeaning as in Schedule 17A;

‘relevant company’ means a company in respect ofwhich profits or gains for the purposes of Case I 15or II of Schedule D are computed in accordancewith relevant accounting standards, which are, orinclude, relevant accounting standards in relationto profits or gains or losses on financial assets orliabilities; 20

‘relevant limit’, in relation to an accountingperiod, means, subject to subsection (3), €200,000;

‘small company’ shall be construed in accordancewith subsection (4);

‘tax payable for the initial period’, in relation to 25capital 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 insteadof 31 December in that year;

‘tax payable for the later period’, in relation to 30capital 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 tothat year.

(2) An accounting period is not a relevant 35accounting period where, but for this subsection,the final instalment of preliminary tax would, byreason of the dates on which the accounting periodstarts and ends, be due and payable in accordancewith section 959AS(2) on or before the date on 40which the initial instalment would be due and pay-able in accordance with that section.

(3) Where the length of an accounting period isless than 12 months, the relevant limit in relationto the accounting period shall be proportionately 45reduced.

(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 to 50the accounting period.

(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-5ance 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-10ing 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 respects15due dates for payment of tax apply subject tosections 579(4)(b) and 981.

Obligation to 959AN.—(1) Every person who is a chargeablepay person as respects any chargeable period is liable20preliminary

to pay to the Collector-General in accordance withtax.this Chapter the amount of that person‘s prelimi-nary tax appropriate to that chargeable period.25

(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 thechargeable person is likely to become payable bythat person for the chargeable period by reason30of either a self assessment under Chapter 4 or aRevenue assessment under Chapter 5.

(3) Any amount of preliminary tax appropriateto a chargeable period which is paid by and notrepaid to a chargeable person in any capacity shall,35to 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-ment on account of the tax payable by the charge-able person for the chargeable period.40

(4) Where—

(a) the tax payable by a company for anaccounting period does not exceed therelevant limit, and

(b) the accounting period started on the com-45pany coming within the charge to cor-poration tax,

then the preliminary tax appropriate to theaccounting period shall be deemed to be nil andneither subsection (3) of section 959AR nor sub-50section (4) of section 959AS apply as respects thataccounting period.

(5) This section does not apply to capital gainstax.

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Date for 959AO.—(1) Subject to section 959AP, prelimi-payment of nary tax appropriate to a tax year for income taxincome tax.

purposes is due and payable on or before 31 5October in the tax year.

(2) (a) Subject to subsections (3) to (6), incometax payable by a chargeable person fora tax year shall be due and payable onor before the specified return date for 10the tax year whether or not an assess-ment is made on or by the chargeableperson for the tax year on or beforethat date.

(b) Where an assessment to income tax for 15a tax year has not been made on or bya chargeable person on or before thespecified return date for the tax yearthen the tax specified in any sub-sequent assessment made on or by the 20chargeable person for that year shallbe deemed to have been due and pay-able on or before the specified returndate for the tax year.

(3) Income tax payable by a chargeable person 25for a tax year shall be deemed to have been dueand payable on 31 October in the tax year where—

(a) the chargeable person has defaulted inthe payment of preliminary tax for thetax year, 30

(b) the preliminary tax paid by the charge-able person for the tax year is lessthan, or less than the least of, as thecase may be—

(i) 90 per cent of the income tax pay- 35able by the chargeable person forthe tax year,

(ii) the income tax payable by thechargeable person for the preced-ing tax year, and 40

(iii) in the case of a chargeable personto whom section 959AP applies(other than a chargeable person inrelation to whom the amount ofincome tax payable, or taken in 45accordance with subsection (4)(a)to be payable, for the pre-preced-ing tax year was nil), 105 per centof the income tax payable by thechargeable person for the pre-pre- 50ceding tax year,

or

(c) the preliminary tax payable by the charge-able person for the tax year was notpaid by 31 October in the tax year. 55

(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-able person for the preceding tax year5or 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,

(b) where, after 31 October in a tax year, an10amount of additional income tax forthe preceding tax year or, in the case ofa chargeable person to whom section959AP applies, the pre-preceding taxyear becomes payable, that additional15income tax shall not be taken intoaccount if it became due and payableone month following the amendmentto the assessment or the determinationof the appeal, as the case may be, by20virtue of section 959AU(2) or section959AV(2), and

(c) the tax payable for the preceding tax year,or in the case of a chargeable person towhom section 959AP applies, the pre-25preceding tax year, shall be determinedwithout regard to any relief to whichthe chargeable person is or maybecome entitled for the preceding yearor the pre-preceding year, as the case30may be, under section 481 or Part 16.

(5) Where, for a tax year, a chargeable personis assessed to income tax in accordance withsection 1017 or 1031C, and that person was not soassessed for the preceding tax year or for the pre-35preceding tax year or for both of those yearseither—

(a) because the person’s spouse or civil part-ner was so assessed for either or bothof those years, or40

(b) because the person and the person’sspouse or civil partner were assessed toincome tax in accordance with section1016 or 1023, or section 1031B or1031H, as the case may be, for either45or both of those years,

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, as50the case may be, for the person to be assessed toincome 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 married55persons, would have been so entitled if section1019 had applied.

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(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 thatpreceding tax year in accordance with 5section 65(3), then, notwithstandingthat the assessment for that precedingtax year has not been amended, anyincome tax payable for that precedingtax year which exceeds the income tax 10due 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.

(b) An amount of income tax to which para- 15graph (a) applies shall not be takeninto account for the purposes of sub-section (3).

(c) Notwithstanding section 959AU, where,in relation to a tax year, any additional 20tax 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),then, such additional tax as specified in 25the amendment to the assessment forthat year shall be deemed to have beendue and payable on or before thespecified return date for the tax year.

Payment of 959AP.—(1) This section applies to a charge- 30preliminary tax able person who—by direct debit.

(a) authorises the Collector-General to col-lect preliminary tax for income tax pur- 35poses by the debiting of a bank accountof that person in accordance with sub-section (2), and

(b) complies with such conditions as the Col-lector-General may reasonably impose 40to ensure that an amount of prelimi-nary tax payable by a chargeable per-son for a tax year will be paid by thechargeable person in accordance withthis section. 45

(2) Preliminary tax appropriate to a tax year forincome tax purposes is due and payable in the caseof a chargeable person to whom this subsectionapplies—

(a) as respects the first tax year for which the 50Collector-General is authorised inaccordance with subsection (1) to debitthat person’s bank account, by way ofa minimum of 3 equal monthly instal-ments in that year, and 55

(b) as respects any subsequent tax year inwhich the Collector-General is so auth-orised, 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-Gen-eral is so authorised.

(3) The Collector-General may, in any particu-5lar case, in order to facilitate the payment of pre-liminary tax in accordance with this section, agreeat the Collector-General’s discretion to vary thenumber of equal monthly instalments to be col-lected in a year or agree at the Collector-General’s10discretion to an increase or decrease in the amountto be collected in any subsequent instalment to bemade in that year.

(4) A chargeable person shall not be treated ashaving paid an amount of preliminary tax in15accordance with this subsection unless that personpays in the tax year the monthly instalments duein accordance with subsection (2) or (3), asappropriate.

(5) For the purposes of section 959AO, a20chargeable person who pays an amount of prelimi-nary tax appropriate to a tax year in accordancewith this section shall be deemed to have paid thatamount of preliminary tax on 31 October in thetax year.25

Date for 959AQ.—(1) Capital gains tax payable by apayment of chargeable person for a tax year is, where ancapital gains

assessment has not been made on or by the30 tax.chargeable person for the tax year, due andpayable—

(a) as respects tax payable for the initialperiod, on or before 15 December in35the tax year, and

(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 a40chargeable person for a tax year is due and pay-able in accordance with subsection (1), then thetax specified in any subsequent assessment madeon or by the chargeable person for that year shallbe deemed to have been due and payable—45

(a) on or before 15 December in the tax year,as respects tax payable for the initialperiod, and

(b) on or before 31 January in the next fol-lowing tax year, as respects tax payable50for the later period.

Date for 959AR.—(1) Preliminary tax appropriate to anpayment of accounting period, other than a relevant account-corporation55

ing period, of a company is due and payable—tax: companiesother thanwith relevant (a) subject to paragraph (b), not later than60accounting the day (in this paragraph referred toperiods. as the ‘first mentioned day‘) which is

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31 days before the day on which theaccounting 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- 5able not later than—

(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 the 10month in which that first-men-tioned day occurs by such elec-tronic means as are required bythe Revenue Commissioners, day23 of the month in which that first- 15mentioned day occurs,

(b) in a case where the accounting period isless than one month and one day inlength, not later than the last day ofthe accounting period, but where that 20day is later than day 21 of the monthin which it occurs, the preliminary taxis due and payable not later than—

(i) day 21 of the month in which thatlast day occurs, or 25

(ii) where payment of the preliminarytax is made by day 23 of themonth in which that last dayoccurs by such electronic means asare required by the Revenue 30Commissioners, day 23 of themonth in which that last dayoccurs.

(2) (a) Subject to subsections (3) and (4), taxpayable by a chargeable person for an 35accounting period, other than arelevant accounting period, of a com-pany shall be due and payable on orbefore the specified return date for theaccounting period. 40

(b) Where the tax payable by a chargeableperson for an accounting period, otherthan a relevant accounting period, of acompany is due and payable in accord-ance with paragraph (a), then the tax 45specified in any subsequent assessmentmade on or by the chargeable personfor that accounting period shall bedeemed to have been due and payableon or before the specified return date 50for the accounting period.

(3) Subject to subsection (4), the tax payable bya chargeable person for an accounting period,

other 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—5

(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 accounting10period, 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 by15the chargeable person for theaccounting period, and

(ii) the sum of the corresponding cor-poration tax for the precedingaccounting period and the corre-20sponding 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 tax25paid 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,

or30

(d) the preliminary tax payable by thechargeable person for the accountingperiod was not paid by the date onwhich it was due and payable.

(4) Where as respects an accounting period,35other than a relevant accounting period, of acompany—

(a) the preliminary tax paid by the charge-able person for the accounting periodin accordance with subsection (1) is40less than 90 per cent of the tax payableby the chargeable person for theaccounting period,

(b) the preliminary tax so paid by the charge-able person for the accounting period45is not less than 90 per cent of theamount which would be payable by thechargeable person for the accountingperiod if no amount were included inthe company’s profits for the account-50ing period—

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(i) in respect of chargeable gains onthe disposal of assets in the partof the accounting period which isafter the date by which prelimi-nary tax for the accounting period 5is payable in accordance with sub-section (1), or

(ii) in the case of a relevant company,in respect of profits or gains orlosses accruing, and not realised, 10in 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 15period which is after the end ofthe month immediately precedingthe month in which preliminarytax for the accounting period ispayable in accordance with sub- 20section (1),

and

(c) the chargeable person makes a furtherpayment of preliminary tax for theaccounting period within one month 25after the end of the accounting periodand the aggregate of that payment andthe preliminary tax paid by the charge-able person for the accounting periodin accordance with subsection (1) is not 30less than 90 per cent of the tax payableby the chargeable person for theaccounting period,

then the further payment of preliminary tax paidby the chargeable person for the accounting 35period shall be treated for the purposes of subsec-tion (3) as having been paid by the date by whichit is due and payable.

Date for 959AS.—(1) Preliminary tax appropriate to apayment of 40relevant accounting period is due and payable in 2corporation

instalments, the first of which is referred to in thistax: companiessection as the ‘initial instalment’ and the second of 45with relevant

accounting which is referred to in this section as the ‘finalperiods. instalment’. 50

(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 6months is later than day 21 of the 55month in which it occurs, the initialinstalment is due and payable notlater than—

(i) day 21 of the month in which thatlast day occurs, or 60

(ii) where payment of the initial instal-ment is made by day 23 of themonth in which that last dayoccurs by such electronic means asare required by the Revenue5Commissioners, day 23 of themonth in which that last dayoccurs.

(b) The final instalment is due and payablenot later than the day (in this para-10graph referred to as the ‘first men-tioned day’) which is 31 days beforethe day on which the accounting periodends, but where the first-mentionedday is later than day 21 of the month15in which it occurs, the final instalmentis due and payable not later than—

(i) day 21 of the month in which thatfirst-mentioned day occurs, or

(ii) where payment of the final instal-20ment is made by day 23 of themonth in which that first-men-tioned day occurs by such elec-tronic means as are required bythe Revenue Commissioners, day2523 of the month in which that first-mentioned day occurs.

(3) (a) Subject to subsections (4) to (7), tax pay-able by a chargeable person for arelevant accounting period is due and30payable on or before the specifiedreturn date for the accounting period.

(b) Where the tax payable by a chargeableperson for a relevant accountingperiod is due and payable in accord-35ance with paragraph (a), then the taxspecified in any subsequent assessmentmade on or by the chargeable personfor that accounting period shall bedeemed to have been due and payable40on or before the specified return datefor the accounting period.

(4) Subject to subsections (6) and (7) andsection 959AT, the tax payable by a chargeableperson for a relevant accounting period shall be45deemed 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 orfinal instalment of preliminary tax for50the accounting period,

(b) the initial instalment of preliminary taxpaid by the chargeable person for theaccounting period is less than, or lessthan the lower of—55

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(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-sponding corporation tax for the 5preceding accounting period andthe corresponding income tax forthe preceding accounting period,

(c) in a case where the accounting periodcommenced on the company coming 10within the charge to corporation tax,the initial instalment of preliminary taxpaid by the chargeable person for theaccounting period is less than 45 percent of the tax payable by the charge- 15able person for the accounting period,

(d) the aggregate of the initial instalment andthe final instalment of preliminary taxpaid by the chargeable person for theaccounting period is less than 90 per 20cent of the tax payable by the charge-able person for the accounting period,or

(e) the initial instalment or the final instal-ment of preliminary tax payable by the 25chargeable person for the accountingperiod was not paid by the date onwhich it was due and payable.

(5) (a) Tax due and payable in accordance withthis subsection by a chargeable person 30for 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’and the second of which is referred to 35in this subsection as the ‘final relevantinstalment’.

(b) The amount of the initial relevant instal-ment is 45 per cent of the tax payableby the chargeable person for the 40accounting period and the initialrelevant instalment is due and payablenot later than the day on which theinitial instalment of preliminary tax isdue and payable in accordance with 45subsection (2).

(c) The amount of the final relevant instal-ment is an amount equal to the excessof the tax payable by the chargeableperson for the accounting period over 50the amount of the initial relevantinstalment and the final relevant instal-ment is due and payable not later thanthe day on which the final instalmentof preliminary tax is due and payable 55in accordance with subsection (2).

(6) Where as respects a relevant accountingperiod—

(a) the initial instalment of preliminary taxpaid by the chargeable person for theaccounting period in accordance with5subsection (2) is less than 45 per centof the tax payable by the chargeableperson for the accounting period,

(b) the initial instalment of preliminary tax sopaid by the chargeable person for the10accounting period is not less than 45per cent of the amount which would bepayable by the chargeable person forthe accounting period if no amountwere included in the company’s profits15for the accounting period—

(i) in respect of chargeable gains onthe disposal of assets in the partof the accounting period which isafter the date by which the initial20instalment of preliminary tax forthe accounting period is payablein accordance with subsection (2),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 in30value of those assets or liabilitiesin the part of the accountingperiod which is after the end ofthe month immediately precedingthe month in which the initial35instalment of preliminary tax forthe accounting period is payablein accordance with subsection (2),

(c) the aggregate of the initial instalment andthe final instalment of preliminary tax40paid by the chargeable person for theaccounting period in accordance withsubsection (2) is not less than 90 percent of the amount of tax which wouldbe payable by the chargeable person45for the accounting period if computedin accordance with subsection (7)(b),

then the initial instalment of preliminary tax paidby the chargeable person for the accountingperiod shall be treated for the purposes of subsec-50tion (4) as having been paid by the date on whichit is due and payable.

(7) Where as respects a relevant accountingperiod—

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(a) the aggregate of the initial instalment andthe final instalment of preliminary taxpaid by the chargeable person for theaccounting period in accordance withsubsection (2) is less than 90 per cent 5of the tax payable by the chargeableperson for the accounting period,

(b) the aggregate of the initial instalment andthe final instalment of preliminary taxso paid by the chargeable person for 10the accounting period is not less than90 per cent of the amount which wouldbe payable by the chargeable personfor the accounting period if no amountwere included in the company’s profits 15for the accounting period—

(i) in respect of chargeable gains onthe disposal of assets in the partof the accounting period which isafter the date by which the final 20instalment of preliminary tax forthe accounting period is payablein accordance with subsection (2),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 the final 35instalment of preliminary tax forthe accounting period is payablein accordance with subsection (2),

(c) the chargeable person makes a furtherpayment of preliminary tax for the 40accounting period within one monthafter the end of the accounting periodand the aggregate of that payment andthe initial instalment and final instal-ment of preliminary tax paid by the 45chargeable person for the accountingperiod in accordance with subsection(2) is not less than 90 per cent of thetax payable by the chargeable personfor the accounting period, 50

then the final 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. 55

Date for 959AT.—(1) In this section—payment ofcorporation

‘initial balance’ means the amount represented bytax: groups.5the formula—

A − B

where—

A is the amount of the initial instalment of pre-liminary tax paid by the surrendering company10for the relevant period in accordance with sub-section (2) of section 959AS, and

B is—

(a) where the relevant period started on thesurrendering company coming within15the charge to corporation tax—

(i) 45 per cent of the tax payable bythe surrendering company for therelevant period, or

(ii) where subsection (4) of section20959AN 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 by25the surrendering company for therelevant period, or

(ii) 50 per cent of the sum of the corre-sponding corporation tax for thepreceding accounting period and30the corresponding income tax forthe preceding accounting period,which is payable by the surren-dering company;

‘final balance’ means the amount represented by35the formula—

C − D

where—

C is the amount of preliminary tax paid by thesurrendering company for the relevant period40in accordance with section 959AR(1) or section959AS(2), as the case may be, and

D is 90 per cent of the tax payable by the surren-dering company for the relevant period, or,where subsection (4) of section 959AN applies45in relation to that period, a nil amount;

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‘relevant initial balance’ means that part of aninitial 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 in 5accordance with subsection (3).

(2) This section applies where—

(a) a company (in this section referred to asthe ‘surrendering company’) which is amember of a group pays— 10

(i) an initial instalment of preliminarytax for an accounting period (inthis subsection referred to as the‘relevant period’) in accordancewith subsection (2) of section 15959AS, being an amount whichexceeds, or exceeds the lower of—

(I) 45 per cent of the tax payableby that surrendering companyfor the relevant period, and 20

(II) 50 per cent of the sum of thecorresponding corporationtax for the preceding account-ing period and the corre-sponding income tax for the 25preceding accounting period,that is payable by the surren-dering company,

(ii) an initial instalment of preliminarytax for a relevant period which 30started on the surrendering com-pany coming within the charge tocorporation tax, being an amountwhich exceeds 45 per cent of thetax payable by that company for 35the relevant period,

(iii) an amount of preliminary tax for arelevant period in accordance withsection 959AR(1) or section959AS(2), as the case may be, 40being an amount which exceeds 90per cent of the tax payable by thesurrendering company for therelevant period, or

(iv) any amount of preliminary tax for a 45relevant period in respect of whichsubsection (4) of section 959ANapplies,

(b) another company (in this section referredto as the ‘claimant company’) which is 50a member of the group pays—

(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 the5lower of—

(I) 45 per cent of the tax payableby the claimant company forthe accounting period, and

(II) 50 per cent of the sum of the10corresponding corporationtax for the preceding account-ing period and the corre-sponding income tax for thepreceding accounting period,15which is payable by the claim-ant company,

(ii) an initial instalment of preliminarytax for an accounting period whichstarted on the claimant company20coming 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, or25

(iii) an amount of preliminary tax foran accounting period in accord-ance with subsection (2) of section959AS, being an amount which isless than 90 per cent of the tax30payable by the claimant companyfor the accounting period, or

(c) the accounting period in paragraph (b)coincides with the relevant period, and

(d) the claimant company is not a small com-35pany in relation to the relevant period.

(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-40General—

(a) that subsection (4)(a) is to have effect inrelation to the relevant initial balance,or

(b) that subsection (4)(b) is to have effect in45relation to the relevant final balance.

(4) (a) Where this subsection has effect inrelation to any relevant initialbalance—

(i) an additional amount of prelimi-50nary tax equal to the relevantinitial balance shall be deemed for

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the purposes of subsection (4)(b)of section 959AS to have beenpaid by the claimant company onthe due date for the payment ofthe initial instalment of prelimi- 5nary tax of that company for therelevant period if 100 per cent ofthe tax payable by the claimantcompany for the relevant period,disregarding this subparagraph, is 10paid on or before the specifiedreturn date for the relevantperiod, and

(ii) the surrendering company shall forthe purposes of this section be 15treated as having surrendered therelevant initial balance to theclaimant company and thatrelevant initial balance shall notbe available for use by any other 20company under this section.

(b) Where this subsection has effect inrelation to any relevant final balance—

(i) an additional amount of prelimi-nary tax equal to the relevant final 25balance shall be deemed for thepurposes of subsection (4)(d) ofsection 959AS to have been paidby the claimant company on thedue date for the payment of the 30final instalment of preliminary taxof that company for the relevantperiod if 100 per cent of the taxpayable by the claimant companyfor the relevant period, dis- 35regarding this subparagraph, ispaid on or before the specifiedreturn date for the relevantperiod, and

(ii) the surrendering company shall for 40the purposes of this section betreated as having surrendered therelevant final balance to the claim-ant company and that relevantfinal balance shall not be available 45for use by any other companyunder this section.

(5) A payment for a relevant initial balance orfor a relevant final balance—

(a) shall not be taken into account in comput- 50ing profits or losses of either companyfor corporation tax purposes, and

(b) shall not be regarded as a distribution ora charge on income for any of the pur-poses of the Corporation Tax Acts, 55

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 anagreement between them as respects an amount5surrendered 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 companyto which the section relates.10

(b) Where this section applies, the amounton which, but for this section, theclaimant company is liable to payinterest in accordance with section1080 shall be reduced by—15

(i) any relevant initial balance deemedto have been paid by that com-pany in accordance with subsec-tion (4)(a)(i), or

(ii) any relevant final balance deemed20to have been paid by that com-pany in accordance with subsec-tion (4)(b)(i).

(7) For the purposes of this section, 2 com-panies are members of the same group if and only25if they would be such members for the purposesof section 411.

Date for 959AU.—(1) Subject to subsection (2) andpayment of section 959AV, any additional tax due by reason30tax: amended

of the amendment of an assessment for a charge-assessments.able period shall be deemed to be due and payableon the same day as the tax due under the assess-35ment, before its amendment, was due and payable.

(2) Where—

(a) the assessment was made after thechargeable person had delivered areturn containing a full and true dis-40closure of all material facts necessaryfor the making of the assessment, or

(b) the assessment had previously beenamended following the delivery of thereturn containing such disclosure,45

any additional tax due by reason of the amend-ment of the assessment shall be deemed to havebeen due and payable not later than one monthfrom the date of the amendment.

Date for 959AV.—(1) Where, on the determination of50payment of an appeal against an assessment made on a charge-tax:

able person for a chargeable period, the amountdetermination55of tax payable by the person for the period is inof an appeal.excess of the amount of the tax which the charge-able person had paid before the making of the

261

262

appeal, the excess shall be deemed to be due andpayable on the same date as the tax charged bythe assessment is due and payable.

(2) Notwithstanding subsection (1), where—

(a) the tax which the chargeable person had 5paid before the making of the appealis not less than 90 per cent of the taxfound to be payable on the determi-nation of the appeal, and

(b) the tax charged by the assessment was 10due and payable in accordance withsection 959AO(2), section 959AQ,section 958AR(3) or section 958AS(3),as the case may be,

the excess referred to in subsection (1) shall be 15deemed to be due and payable not later than onemonth from the date of the determination of theappeal.’’.

PART 2

Amendment of the Taxes Consolidation Act 1997 20consequential on the deletion of Parts 39 and 41 and the

insertion of Part 41A

The Taxes Consolidation Act 1997 is amended—

(a) in section 128B(12) by inserting ‘‘and’’ after ‘‘year of assess-ment,’’ in paragraph (a), and by deleting paragraph (b), 25

(b) in section 380(3) by substituting the following for para-graph (a):

‘‘(a) Subject to Chapter 5 of Part 41A, assessmentsmay, as necessary, be made or amended atany time for the purpose of applying subsec- 30tions (2) and (3) of section 378, section 379and subsection (2).’’,

(c) in section 380P(3) by substituting the following for para-graph (a):

‘‘(a) Subject to Chapter 5 of Part 41A, assessments 35may, as necessary, be made or amended atany time for the purpose of applying subsec-tions (2) and (3) of section 380N, section380O and subsection (2).’’,

(d) in section 811A(1A) by substituting ‘‘nothing in section 40959Z, 959AA or 959AB shall be construed’’ for ‘‘sections955(2)(a) and 956(1)(c), as construed together withsection 950(2), shall not be construed’’,

(e) in section 1069 by substituting the following for subsection(1): 45

‘‘(1) In this section ‘assessment’ includes an amendedassessment.’’,

(f) in section 1082 by substituting the following for subsection(1):

‘‘(1) In this section ‘neglect’ has the same meaning asin section 959AD.’’,

and5

(g) In each provision referred to in column (2) of the Table tothis Schedule, the words or reference set out in column(3) of the Table are to be deleted and the words or refer-ence opposite the entry in column (3), as set out in col-umn (4) of the Table, are to be inserted.10

TABLE

Item No. Provision Words to be deleted Words to be inserted(1) (2) (3) (4)

1 section 21B(6) section 951 Chapter 3 of Part 41A

215 section 29A(5) Part 41 Part 41A

3 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

520 section an additional assessment an assessment on or by67(1)(a)(ii) may be made on such such person may be made

person or amended

6 section 68(2) section 950 section 959A

7 section 80A(1), section 950 section 959Ain paragraph (b)25of the definitionof ‘‘specifiedperiod’’

8 section 80A(3) section 951 Chapter 3 of Part 41A

930 section 89(4)(c) section 951 Chapter 3 of Part 41A

10 section 95(3) an additional assessment an assessment made on orshall (notwithstanding by such person shallanything in section (notwithstanding anything924(2)) be made in Chapter 5 of Part 41A)accordingly35 be amended accordingly

11 section 100(4) by means of an additional by means of an amendedassessment or otherwise assessment or otherwise

12 section 101(b) by additional assessment by amended assessmentor otherwise or otherwise

1340 section 102(4) by means of additional by means of amendedassessment or otherwise assessment or otherwise

14 section 103(7) by means of additional by means of amendedassessment or otherwise assessment or otherwise

15 section section 951 Chapter 3 of Part 41A110(3)(b)(ii)45

16 section 110(6)(b) section 950 section 959A

17 section 128(2A) the purposes of Part 41 the purposes of Part 41A

263

264


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 5under section 959Nsection

19 section 128B(11) sections 952 and 958 Chapter 7 of Part 41A

20 section section 952(2) section 959AN(2)128B(12)(a)

21 10section section 958(4) section 959AO(3)128B(12)(c)

22 section 128C(13) the purposes of Part 41 the purposes of Part 41A

23 section 128C(13) section 951 by reason of a Chapter 3 of Part 41A bynotice given under reason of a notice givensubsection (6) of that 15under section 959Nsection

24 section 128D(5) an additional assessment an amended assessmentor otherwise or otherwise

25 section section 951 Chapter 3 of Part 41A175(1A)(b)(i) 20

26 section 182(1) Part 41 Part 41A

27 section 189A(1), section 950 section 959Ain the definitionof ‘‘specifiedreturn date for 25the chargeableperiod’’

28 section section 950 section 959A216A(3)(a)

29 30section section 950 section 959A216C(3)(a)

30 section 222(4)(a) or additional assessments or amend suchassessments

31 section 232(3) within the meaning of within the meaning ofsection 950, is required to 35Part 41A, is required todeliver under section 951 deliver under Chapter 3

of that Part

32 section 232(3)(b) Part 41 Part 41A

33 section 232(3)(b) section 950 Part 41A

34 40section 232(3)(c) section 951(6) section 959N


36 section Section 951 Chapter 3 of Part 41A249(2)(ab)(iii)

37 section 250(4) and there shall be made and assessments shall, asall such assessments or 45necessary, be made oradditional assessments as amendedare necessary

38 section section 950 section 959A267M(2)(b)


39 section 271(6) any necessary additional any assessments may, asassessments may be made necessary, be amended

405 section section 951 Chapter 3 of Part 41A291A(4)(b)(i)

41 section 299(2) all such additional all such assessments orassessments and amendments ofadjustments of assessmentsassessments10

42 section 299(3)(b) section 950 section 959A

43 section 380W(1) all such additional all such assessments andassessments and amendments ofadjustments of assessmentsassessments15

44 section 394 by additional assessment by amended assessment

45 section section 951 Chapter 3 of Part 41A396C(3)(c)

46 section 404(4)(b) section 951 Chapter 3 of Part 41A

4720 section 429(4) section 919(5)(b)(iii) Chapter 5 of Part 41A

48 section section 951 Chapter 3 of Part 41A434(3A)(c)

49 section section 950 Part 41A458(1B)(b)

5025 section 459(5)(b) section 950 Part 41A

51 section 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

5230 section and there shall be made and assessments shall, as482(6)(d)(II) all such assessments or necessary, be made or

additional assessments as amendedare necessary

53 section 485FB(1) Part 41 Part 41A

5435 section 485FB(2) Part 41 Part 41A

55 section 485FB(3) under section 951, under Chapter 3 of Partprepare 41A, prepare

56 section 485FB(3) section 951 on or before Chapter 3 of Part 41A onor before

5740 section 486C(11) section 951 Chapter 3 of Part 41A

58 section 502(6) section 924(2)(c) section 959AD


60 section sections 955, 956 and 1048 Chapter 5 of Part 41A530N(3)(b) and section 1048

6145 section 531AI(1) section 956 section 959Z

62 section 531AI(2) section 956 section 959Z

265

266


63 section Part 41 Part 41A531AS(1)

64 5section Part 41 Part 41A531AS(2)

65 section Part 41 Part 41A531AS(5)

66 section section 958 Chapter 7 of Part 41A531AS(5) 10

67 section Part 41 Part 41A531AT(1)

68 section Chapter 1 and 2 of Part Part 41A531AAA(b) 39

69 15section by way of assessment or by way of assessment or538(2A)(a) additional assessment amended assessment


71 section 579D(1) section 950 section 959A

72 section 579D(1) section 951 Chapter 3 of Part 41A

73 20section 591(10) section 951 Chapter 3 of Part 41A

74 section 598(6)(b) by means of assessment by means of assessmentor additional assessment or amended assessment

75 section 629(1), section 950 section 959Ain the definitionof ‘‘specified 25period’’

76 section 629(1), section 951 Chapter 3 of Part 41Ain the definitionof ‘‘specifiedperiod’’ 30


78 section 653(2) any necessary assessments any necessary assessmentsor additional assessments, may, as appropriate, beas may be appropriate, made or amendedmay be made 35

79 section 656(1) section 950 section 959A


81 section 665, in section 950 section 959Athe definition of‘‘specified return 40date for thechargeableperiod’’

82 section 678(4) and all such additional and assessments shall beassessments and 45made or amendedadjustments ofassessments shall be made

83 section 681(6)(d) section 951 Chapter 3 of Part 41A

84 section 696E(2) section 951 Chapter 3 of Part 41A


85 section 696E(4) Subsections (9) and (10) Subsection (5) of sectionof section 951 959I and subsections (2)

and (3) of section 959O5

86 section 696E(4) delivered under that delivered under Chaptersection 3 of Part 41A

87 section 700(3) and all such assessments and assessments shall, asand additional necessary, be made orassessments shall be made10 amendedas may be necessary

88 section 730H(1), section 950 section 959Ain the definitionof ‘‘specifiedreturn date for15the chargeableperiod’’

89 section 730I section 950 or 1084 Part 41A or section 1084

90 section 730I sections 951 and 1084 Chapter 3 of Part 41Aand section 108420

91 section sections 951 and 1084 Chapter 3 of Part 41A739E(2A)(b)(iii) and section 1084

92 section 747B(1), section 950 section 959Ain the definitionof ‘‘specified25return date forthe chargeableperiod’’

93 section 747C section 950 or 1084 Part 41A or section 1084

9430 section 747C sections 951 and 1084 Chapter 3 of Part 41Aand section 1084

95 section section 950 section 959A749(2A)(b), inthe definition of‘‘specified return35date for thechargeableperiod’’

96 section section 951 Chapter 3 of Part 41A749(2B)(b)40

97 section 751B(5) Part 41 Part 41A

98 section Part 41 Part 41A751B(6)(a)

99 section paragraph (b) of the paragraph (b)(i) of the766A(4B)(b)(i)45 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



102 section section 950 section 959A784E(8)(a)


267

268


104 section 787(13) any additional assessment, any assessment,alteration of an amendment of anassessment 5assessment

105 section 787C(3) Part 41 Part 41A

106 section 787C(6) any additional assessment, any assessment,alteration of an amendment of anassessment assessment

107 10section 804(1) an assessment or an assessment may beadditional assessment made on or by thatmay be made on that person for that year orperson for that year such an assessment may

be amended

108 15section 804(3)(a) an assessment or an assessment may beadditional assessment mademay be made

109 section 804(3)(b) an assessment may be an assessment may beadjusted amended

110 20section section 955(4) section 959P811A(6)(b)(iv)

111 section section 950 section 959A835G(5)(b)


113 25section Part 41 Part 41A847A(9)(a)




117 30section section 950 Part 41A864A(1)(c)(ii)

118 section section 951(1) Chapter 3 of Part 41A886(4)(a)(ii)

119 section 886A(5) section 956 section 959Z

120 35section 895(6) section 950 or 1084 Part 41A or section 1084

121 section 895(6) sections 951 and 1084 Chapter 3 of Part 41Aand section 1084

122 section 896(5) section 950 or 1084 Part 41A or section 1084

123 section 896(5) sections 951 and 1084 Chapter 3 of Part 41Aand section 1084 40

124 section 911(1) or other officer or other Revenue officermentioned in section mentioned in Part 41A931(1)

125 section 945(1) section 931(1) or other Revenue officermentioned in Part 41A 45



127 section 960(1) made under Part 41 made on or by a personwho is a chargeableperson under Part 41A5

128 section 960(2) made under Part 41 made on or by a personwho is a chargeableperson under Part 41A

129 section 960E(1) section 928 section 959G

13010 section 990A(b) section 928 section 959G

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)15 assessments amendments of

assessments

133 section 1043 Without prejudice to the Without prejudice to Partgenerality of section 41A931(2)

13420 section 1048(1) an assessment or an an assessment or anadditional first amended assessment, asassessment, as the case the case may be, may bemay be, may be made for made for any year ofany year of assessment assessment for which anfor which an assessment25 assessment or anor an additional first amended assessmentassessment could have could have been madebeen made

135 section 1080(1), as in section 950(1) as it has for the purposesin the definition30 of Part 41Aof ‘‘chargeableperson’’

136 section 1083 Without prejudice to Without prejudice to Partsections 931(2) 41A

13735 section Part 41 Part 41A1084(1)(a), inthe definition of‘‘chargeableperson’’

13840 section section 951 Chapter 3 of Part 41A1084(1)(a), inthe definition of‘‘return ofincome’’

13945 section section 950 section 959A1084(1)(a), inthe definition of‘‘specified returndate for thechargeable50period’’

140 section 1084(5) preliminary tax (within preliminary tax (withinthe meaning of Part 41) the meaning of Part 41A)paid under section 952 paid under Chapter 7 of

that Part55

269

270


141 section section 951 Chapter 3 of Part 41A1085(1)(a), inthe definition of 5‘‘return ofincome’’

142 section section 950 section 959A1085(1)(a), inthe definition of 10‘‘specified returndate for thechargeableperiod’’

143 15section 1104(3) section 928 section 959G

144 Schedule 12, section 951 Chapter 3 of Part 41Aparagraph 3(5)

145 Schedule 12A, section 951 Chapter 3 of Part 41Aparagraph 6A

146 20Schedule 12C, section 951 Chapter 3 of Part 41Aparagraph 20A

147 Schedule 18B, Part 41 Part 41Aparagraph 7(4)

148 Schedule 18B, section 951 Chapter 3 of Part 41Aparagraph 15(3) 25

149 Schedule 24, any such additional that assessment may beparagraph 11 assessments may be made amended to ensure that

as are necessary to ensure the total amount of thethat the total amount of income is assessed andthe income is assessed 30the proper credit, if any,and the proper credit, if is given in respect of thatany, is given in respect of income, and where thethat income, and where income is entrusted tothe income is entrusted to any person in the Stateany person in the State 35for payment, anfor payment, any such assessment to income taxadditional assessment to may be made or amendedincome tax may be made on the recipient of theon the recipient of the income under Case IV ofincome under Case IV of 40Schedule D.Schedule D.

150 Schedule 29, in Section 951(1) and (2) Chapter 3 of Part 41Acolumn 1

SCHEDULE 5

Miscellaneous Amendments: Provisions Relating toAdministration

1. The Taxes Consolidation Act 1997 is amended—

(a) in section 2(1) by inserting the following after the definition5of ‘‘Appeal Commissioner’’:

‘‘ ‘appropriate inspector’ in relation to a person, means—

(a) the inspector or other officer of the RevenueCommissioners (in this definition referred toas ‘officer’) who has last given notice in writ-10ing to the person that he or she is the inspec-tor or officer to whom the person is requiredto deliver an account, declaration, list, par-ticular, return, statement or other item,

(b) in the absence of an inspector or officer referred15to 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 referred20to 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, or25

(d) in any case where the person is directed todeliver an account, declaration, list, particu-lar, return, statement or other item to theinspector of returns, the inspector ofreturns;’’,30

(b) in section 2(1) by inserting the following for the definitionof ‘‘inspector’’:

‘‘ ‘inspector’ means—

(a) an inspector of taxes appointed under section852,35

(b) an officer of the Revenue Commissioners whoas part of his or her duties in that capacitycarries out duties similar to those of aninspector of taxes appointed under section852, including (but not limited to) the making40and amending of assessments, the making ofdeterminations and dealing with notices ofappeal against assessments and determi-nations, or

(c) an officer of the Revenue Commissioners who is45employed or acts in the execution of the TaxActs or the Capital Gains Tax Acts;

271

Section 114.

272

‘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 nom-inate an inspector to be the inspector ofreturns.

(b) The inspector of returns shall take deliveryof any account, declaration, list, particular, 10return, statement or other item which,under the Tax Acts or the Capital GainsTax Acts, is required to be delivered to himor her.

(c) Where an inspector is nominated under 15paragraph (a), the name of the inspector sonominated, and the address to which any-thing referred to in paragraph (b) is to bedirected, shall be published in the IrisOifigiúil;’’, 20

(d) in section 5(1) by inserting the following after the definitionof ‘‘Appeal Commissioner’’:

‘‘ ‘appropriate inspector’ has the same meaning as insection 2;’’,

(e) in section 5(1) by inserting the following for the definition 25of ‘‘inspector’’:

‘‘ ‘inspector’ has the same meaning as in section 2;

‘inspector of returns’ has the same meaning as insection 2;’’,

(f) in section 636 by deleting subsection (1), 30

(g) in section 766(1)(a) by deleting the definition of ‘‘appropri-ate inspector’’,

(h) in section 891A(1) by deleting the definition of ‘‘appropri-ate inspector’’,

(i) in section 917A by deleting subsection (1), 35

(j) in section 950(1) by deleting the definitions of ‘‘appropriateinspector’’ and ‘‘inspector of returns’’,

(k) in section 951(11) by deleting paragraphs (a), (b) and (c),and

(l) in each provision referred to in column (2) of the Table to 40this 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.

2. Part 37 of the Taxes Consolidation Act 1997 is amended—

(a) in section 852(1) by substituting ‘‘the Tax Acts and the Capi- 45tal Gains Tax Acts’’ for ‘‘the Income Tax Acts’’,

(b) by deleting sections 854 and 855,

(c) in section 857(1) by substituting ‘‘the Tax Acts and the Capi-tal Gains Tax Acts’’ for ‘‘the Income Tax Acts in so faras those Acts relate to tax under Schedule D’’,

(d) in section 857(2) by substituting ‘‘shall’’ for ‘‘may’’,5

(e) in section 857(3) by deleting ‘‘in relation to tax under Sched-ule D (otherwise than in respect of any such declarationmade before him or her)’’,

(f) in section 857 by deleting subsection (4),

(g) in section 860 by substituting the following for subsection10(1):

‘‘(1) Subject to subsection (2), a Peace Commissionermay administer an oath to be taken by any officer orperson in any matter relating to the execution of the TaxActs or the Capital Gains Tax Acts.’’,15

(h) in section 861(2) by substituting ‘‘under the Tax Acts andthe 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’’,20

(j) in section 866 by substituting ‘‘on which any income tax, cor-poration 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 CapitalGains Tax Acts’’ for ‘‘the Income Tax Acts’’,25

(l) in section 868 by substituting ‘‘the Tax Acts and the CapitalGains 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.’’30for ‘‘income tax.’’,

(n) in section 874(1) by deleting ‘‘, assessor’’, and

(o) by inserting the following section after section 874:

‘‘Prescribing 874A.—(1) In this section—of forms, etc.35

‘the Acts’ means—

(a) the Tax Acts,

(b) the Capital Gains Tax Acts,

(c) Part 18C,

(d) Part 18D,40

(e) the Capital Acquisitions Tax Con-solidation Act 2003, and the

273

274

enactments amending orextending that Act,

(f) the Stamp Duties Consolidation Act1999, and the enactments amend-ing or extending that Act, and 5

(g) Chapter IV of Part II of the FinanceAct 1992,

and any instruments made under any ofthose Acts or Parts;

‘form or other document’ includes a form or 10other document for use, or capable of use, ina machine readable form.

(2) Where a provision of the Acts requiresthat a form or other document used for anypurpose of the Acts is to be prescribed, auth- 15orised or approved by the Revenue Com-missioners, other than in respect of any formwhich is required by the Acts to be pre-scribed by order or regulations made by theRevenue Commissioners, such form or other 20document may be prescribed, authorised orapproved by—

(a) a Revenue Commissioner, or

(b) an officer of the Revenue Com-missioners not below the grade or 25rank of Assistant Secretary auth-orised by them in writing forthat purpose.

(3) Nothing in this section shall be readas restricting section 12 of the Interpretation 30Act 2005.’’.

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 out 35in that Part)—

(i) by substituting ‘‘of the Tax Acts and the CapitalGains Tax Acts’’ for ‘‘of the Acts relating to incometax’’, and

(ii) by deleting ‘‘relating to Schedule D’’, 40

(b) by deleting the text of the form of the third declaration inthat 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-General and 45officers for receiving tax (being in the form of the text ofthe fourth declaration that is set out in that Part)—

(i) by substituting ‘‘of the Tax Acts and the CapitalGains Tax Acts’’ for ‘‘of the Acts relating to incometax’’, and

(ii) by deleting ‘‘relating to Schedule D’’.

4. Schedule 27 to the Taxes Consolidation Act 1997 is amended5by deleting Part 2.

5. The Finance Act 2006 is amended by deleting section 123.

TABLE

CONSEQUENTIAL AMENDMENTS TO THE TAXESCONSOLIDATION ACT 199710

Item Provision Words to be deleted Words to beNo. inserted(1) (2) (3) (4)

1 Section 182(1) ‘‘appropriate inspector’’ ‘‘prescribedand ‘‘prescribed form’’15 form’’ has thehave the same meanings same meaningrespectively

2 Section 246(5), in the appropriate inspector the appropriateparagraph (a)(iii)(I) to whom the company inspector

makes the return referred20to in section 951

3 Section 264B(1), in the inspector of returns the inspector ofparagraph (b) of the specified in section 950 returnsdefinition of ‘‘appropriateinspector’’25

4 Section 267E(1), in the inspector of returns the inspector ofparagraph (b) of the specified in section 950 returnsdefinition of ‘‘appropriateinspector’’

530 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 that inspectorsection,

735 Section 894(1), in the inspector of returns the inspector ofparagraph (c) of the specified in section 950 returnsdefinition of ‘‘appropriateinspector’’

8 Section 895(1), in the inspector of returns the inspector ofparagraph (c) of the40 specified in section 950 returnsdefinition of ‘‘appropriateinspector’’

9 Section 896(1), in the inspector of returns the inspector ofparagraph (c) of the specified in section 950 returnsdefinition of ‘‘appropriate45inspector’’

10 Section 909(2) the inspector of returns the inspector of(within the meaning of returnssection 951(11))

1150 Schedule 18B, paragraph the appropriate inspector the appropriate33 (within the meaning of inspector

section 950)

275

Section 121.

276

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)’’, and 10

(ii) in paragraph (b) by substituting ‘‘Paragraph (a)’’ for‘‘Subparagraph (a)’’,

(d) in section 480A(2) by substituting ‘‘section 960H’’ for‘‘section 1006A’’,

(e) in section 511(1)(a)(i) by substituting ‘‘Redundancy Pay- 15ments Acts 1967 to 2003’’ for ‘‘Redundancy PaymentsActs, 1967 to 1991’’,

(f) in section 730K by substituting the following for subsection(5):

‘‘(5) Where an individual is chargeable to tax in 20accordance with subsection (1) in respect of an amountof income the tax thereby payable, in so far as it is paid,shall be treated as an amount of capital gains tax paid forthe purposes of section 104 of the Capital AcquisitionsTax Consolidation Act 2003.’’, 25

(g) in section 747E by substituting the following for subsection(5):

‘‘(5) Where an individual is chargeable to tax inaccordance with subsection (1) in respect of an amountof income the tax thereby payable, in so far as it is paid, 30shall be treated as an amount of capital gains tax paid forthe purposes of section 104 of the Capital AcquisitionsTax Consolidation Act 2003.’’,

(h) in section 772(3G) by substituting ‘‘Pensions Act 1990’’ for‘‘Principal Act’’, 35

(i) in section 831—

(i) in subsection (1)(a)—

(I) by substituting the following for the definition of‘‘the Directive’’:

‘‘ ‘the Directive’ means Council Directive 402011/96/EU of 30 November 20111 on the com-mon system of taxation applicable in the case of

1OJ No. L345, 29.12.2011, p.8

parent companies and subsidiaries of differentMember States;’’,

and

(II) in paragraph (ii)(I) of the definition of ‘‘foreigntax’’ by substituting ‘‘Annex I, Part B’’ for5‘‘paragraph (c) of Article 2’’,

and

(ii) in subsection (2)(a)(i) by substituting ‘‘Article 5’’ for‘‘Article 5.1’’,

(j) in section 865A—10

(i) in subsection (1) by substituting ‘‘section 960H(4)’’for ‘‘section 1006A(2A)’’, and

(ii) in subsection (2) by substituting ‘‘section 960H(4)’’for ‘‘section 1006A(2A)’’,

(k) in section 886A(3) by deleting ‘‘and, for the purposes of15recovery of a penalty under this subsection, section 1061shall apply in the same manner as it applies for the pur-poses of the recovery of a penalty under any of thesections referred to in that section’’,

(l) in section 891B(7)(b) by deleting ‘‘; and, for the purposes of20the recovery of a penalty under this paragraph, section1061 shall apply in the same manner as it applies for thepurposes of the recovery of a penalty under any of thesections referred to in that section’’,

(m) in section 896B—25

(i) in subsection (1) by substituting the following for thedefinition of ‘‘Commission’’:

‘‘ ‘Authority’ means the National Transport Auth-ority or, in the Irish language, An tÚdarás Náis-iúnta Iompair.’’,30

and

(ii) in subsection (2) by substituting ‘‘Authority’’ for‘‘Commission’’ in both places where it occurs,

(n) in section 898O by deleting subsection (2),

(o) in section 917EA(7) by deleting ‘‘and, for the purposes of35the recovery of a penalty under this subsection, section1061 applies in the same manner as it applies for the pur-poses of the recovery of a penalty under any of thesections referred to in that section’’,

(p) in section 1077E(12) by substituting ‘‘paragraph (a)(ii)’’ for40‘‘paragraph (b)(ii)’’,

(q) in section 1078B(6) by substituting ‘‘section 905 or 908C, asthe case may be’’ for ‘‘that section’’, and

(r) in Schedule 29—

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278

(i) in column 2 by substituting the following for ‘‘section505(3) and (4)’’:

‘‘section 503(3) and (4) (as substituted by section 33of the Finance Act 2011)

section 505(3) and (4) (before the coming into oper- 5ation of section 33 of the Finance Act 2011)’’,

(ii) in column 3 by inserting ‘‘section 481(2F)’’ after‘‘section 267B’’, and

(iii) in column 3 by substituting the following for ‘‘section505(1) and (2)’’: 10

‘‘section 503(1) and (2) (as substituted by section 33of the Finance Act 2011)

section 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 is 15amended—

(a) in section 47(4) by substituting the following for paragraph(a):

‘‘(a) A return or additional return delivered underthis Act shall be made on a form provided, or 20approved of, by the Commissioners.’’,

(b) in section 57(6) by substituting ‘‘section 960H(4)’’ for‘‘section 1006A(2A)’’, and

(c) in section 118(1) by substituting ‘‘and any enactment amend-ing or extending that Act are’’ for ‘‘is’’. 25

3. The Value-Added Tax Consolidation Act 2010 is amended—

(a) in section 2(1) in paragraph (a) of the definition of ‘‘taxabledealer’’ by inserting ‘‘or of heat or cooling energythrough heating or cooling networks,’’ after ‘‘distri-bution system,’’, 30

(b) in section 10(1) by inserting ‘‘or heat or cooling energythrough heating or cooling networks,’’ after ‘‘distri-bution system,’’,

(c) in section 59—

(i) in subsection (1) by deleting paragraph (c) of the 35definition of ‘‘qualifying activities’’, and

(ii) in subsection (2)(e) by inserting ‘‘or of heat or coolingenergy through heating or cooling networks,’’ after‘‘distribution network,’’,

(d) in section 64(6)(a)(i)(I) by substituting ‘‘applies),’’ for 40‘‘applies)’’,

(e) in section 66—

(i) in subsection (3)(b) by inserting ‘‘the rate at whichtax is 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 at5which 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)’’10for ‘‘section 1006A(2A)’’,

(g) in Schedule 1—

(i) in paragraph 8 by substituting the following for subpa-ragraph (1):

‘‘(1) Insurance and reinsurance transactions, and15the 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 (g), (i), (j), (m), (p) and (q) haveeffect on and from the passing of this Act,

(ii) subparagraph (h) is deemed to have come into force30and have taken effect on and from 21 December2010,

(iii) subparagraphs (k), (l), (n) and (o) apply as respectspenalties incurred on or after 24 December 2008, and

(iv) subparagraph (r) has effect on and from 1 January352012.

(b) Paragraphs 2 and 3 have effect on and from the passing ofthis Act.

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finance bill 2012

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