Finance (No. 2) Act 2008
Acts of the Oireachtas
Source: Acts of the Oireachtas

num: 1
paragraphs: — In this Part “Principal Act” means the Taxes Consolidation Act 1997 .
num: 2
paragraphs: — The Principal Act is amended—
(a) by inserting the following after Part 18:
“LEVIES
PART 18A
Income Levy
Definitions (Part 18A).
531A.— (1) In this Part—
‘ aggregate income ’, in relation to an individual and a year of assessment, means the aggregate of the individual’s relevant emoluments and relevant income for the year of assessment;
‘ Collector-General ’ means the Collector-General appointed under section 851;
‘ employee ’ and ‘ employer ’ have the same meanings as in section 983;
‘ excluded emoluments ’ means emoluments which have been gifted to the Minister for Finance under section 483;
‘ income levy ’ has the meaning assigned to it by section 531B;
‘ income tax month ’ means a calendar month;
‘ PAYE Regulation s’ means the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 );
‘ relevant emoluments ’ and ‘relevant income’ shall be construed in accordance with paragraphs (a) and (b), respectively, of the Table to section 531B(1);
‘ similar type payments ’ means payments which are of a similar character to payments made under the Social Welfare Acts but which are made by—
(a) the Health Service Executive,
(b) the Department of Community, Rural and Gaeltacht Affairs,
(c) the Department of Enterprise, Trade and Employment,
(d) the Department of Education and Science,
(e) the Department of Agriculture, Fisheries and Food,
(f) An Foras Ã?iseanna Saothair, in respect of schemes mentioned in clauses (I), (II) and (III) of section 472A(1)(b)(i), or
(g) any other state or territory;
‘ social welfare payments ’ means payments made under the Social Welfare Acts;
‘ year of assessment ’ means a year of assessment within the meaning of the Tax Acts.
(2) Words and expressions used in this Part have, except where otherwise provided or where the context otherwise requires, the same meaning as in the Tax Acts.
Charge to income levy.
531B.— (1) With effect from 1 January 2009, there shall be charged, levied and paid, in accordance with the provisions of this Part, a tax to be known as ‘ income levy ’ in respect of the income specified in paragraphs (a) and (b) of the Table to this subsection.
TABLE
(a) The income described in this paragraph, to be known as ‘ rel evant emoluments ’, is emoluments to which Chapter 4 of Part 42 applies or is applied, other than social welfare payments and similar type payments and excluded emoluments.
(b) The income described in this paragraph, to be known as ‘relevant income’, is income from all sources, other than relevant emoluments, social welfare payments and similar type payments and excluded emoluments, as estimated in accordance with the Income Tax Acts and—
(i) as if sections 140, 141, 142, 143, 195, 231, 232, 233, 234 and 664 were never enacted,
(ii) without regard to any deduction—
(I) in respect of double rent allowance under section 324(2), 333(2), 345(3) or 354(3),
(II) under section 372AP, in computing the amount of a surplus or deficiency in respect of rent from any premises,
(III) under section 372AU, in computing the amount of a surplus or deficiency in respect of rent from any premises,
(IV) under section 847A, in respect of a relevant donation (within the meaning of that section), or
(V) under section 848A, in respect of a relevant donation (within the meaning of that section),
(iii) excluding gains, income or payments to which any of the following provisions apply:
(I) Chapter 4 of Part 8;
(II) Chapter 5 of Part 8;
(III) Chapter 7 of Part 8;
(IV) Chapter 5 of Part 26;
(V) Chapter 6 of Part 26;
(VI) Chapter 1A of Part 27;
(VII) Chapter 4 of Part 27,
and
(iv) having regard to a deduction for any payment to which section 1025 applies, made by an individual pursuant to a maintenance arrangement (within the meaning of that section), relating to the marriage for the benefit of the other party to the marriage, unless section 1026 applies in respect of such payment.
(2) The income levy shall not be payable, for a year of assessment, by an individual who—
(a) proves to the satisfaction of the Revenue Commissioners that his or her aggregate income for the year of assessment does not exceed €18,304,
(b) by virtue of section 45 of the Health Act 1970 or Council Regulation (EEC) No. 1408/71 1 of 14 June 1971 has full eligibility for services under Part IV of that Act, or
(c) following receipt of a claim made in a manner approved or provided by the Revenue Commissioners, proves to their satisfaction that his or her aggregate income for the year of assessment does not exceed €20,000 and who has achieved the age of 65 years or over at any time during that year of assessment.
Rate of charge.
531C.— For the year of assessment 2009, and for each subsequent year of assessment, an individual shall be charged to income levy on his or her aggregate income for the year of assessment at the rates specified in the Table to this section.
TABLE
Part of aggregate income
Rate of income levy
The first €100,100
1%
The next €150,020
2%
The remainder
3%
Deduction and payment of income levy on relevant emoluments.
531D.— (1) An employer shall be liable in the first instance to pay income levy due in respect of any payment of relevant emoluments.
(2) (a) As respects any payment of relevant emoluments made to or on behalf of an employee on or after 1 January 2009, income levy shall be deducted from such emoluments by the employer at any or all of the rates specified in subparagraphs (i) and (ii) of paragraph (c) and for this purpose the said subparagraph (ii) shall apply as if the words ‘but does not exceed €4,810’ were deleted.
(b) As respects any payment of relevant emoluments made to or on behalf of an employee on or after the passing of the Finance (No.2) Act 2008, income levy shall be deducted from such emoluments by the employer at any or all of the rates specified in subparagraphs (i), (ii) and (iii) of paragraph (c).
(c) The rates referred to in paragraphs (a) and (b) are as follows:
(i) 1 per cent where the amount of the relevant emoluments does not exceed €1,925, in the case where the period in respect of which the payment is being made is a week, or a corresponding amount where the period is greater or less than a week,
(ii) 2 per cent on the amount of the excess where the amount of the relevant emoluments exceeds €1,925, but does not exceed €4,810, in the case where the period in respect of which the payment is being made is a week, or a corresponding amount where the period is greater or less than a week,
(iii) 3 per cent on the amount of the excess where the amount of the relevant emoluments exceeds €4,810, in the case where the period in respect of which payment is being made is a week, or a corresponding amount where the period is greater or less than a week,
and notwithstanding that the relevant emoluments are in whole or in part for some year of assessment other than that during which the payment is made.
(3) The provisions of Part 4 of the PAYE Regulations, with any necessary modifications, shall apply to income levy in respect of relevant emoluments, and income levy payable by an employee shall only be recoverable from him or her by his or her employer by deduction in accordance with those provisions.
(4) (a) (i) Within 14 days of the end of every income tax month the employer shall remit to the Collector-General the total of all amounts of income levy which the employer was liable to deduct from relevant emoluments paid by the employer during that income tax month.
(ii) The Collector-General may, in writing, and unless the employer objects, authorise the employer to remit to the Collector-General, within 14 days from the end of such longer period (if any) but not exceeding one year, as may be so authorised, the total of all amounts of income levy which the employer was liable to deduct from relevant emoluments paid by the employer during that longer period.
(iii) Where a remittance referred to in subparagraph (i) is made by such electronic means (within the meaning of section 917EA) as are approved by the Revenue Commissioners, subparagraph (i) shall apply and have effect as if ‘Within 23 days of the end of every income tax month’ were substituted for ‘Within 14 days of the end of every income tax month’ but, where the said remittance is not made within that period of 23 days, subparagraph (i) shall apply and have effect without regard to the provisions of this subparagraph.
(b) On payment of income levy, the Collector-General may furnish the employer concerned with a receipt in respect of the payment which shall consist of whichever of the following the Collector-General considers appropriate, namely—
(i) a separate receipt in respect of each such payment, or
(ii) a receipt for all such payments made within the period specified in the receipt.
(5) (a) Within 46 days from the end of a year of assessment, or from the date the employer ceases permanently to be an employer to whom Regulation 7(1) of the PAYE Regulations applies, whichever is the earlier, the employer shall send to the Collector-General—
(i) a return, in a form provided or approved of by the Revenue Commissioners, in respect of each individual to whom payment of relevant emoluments was made during that year showing—
(I) the total amount of income levy payable as respects the individual in that year,
(II) the dates of commencement and cessation within that year of the employment of the individual, where applicable,
(III) the rate of income levy payable as respects the individual, and
(IV) the total relevant emoluments paid to the individual in that year,
and
(ii) a statement, declaration and certificate, in such form as may be provided or approved of by the Revenue Commissioners, showing the total amount of income levy which the employer was liable to remit in respect of every individual to whom payment of relevant emoluments was made in the year of assessment.
(b) Where the employer is a body corporate, the declaration and certificate referred to in paragraph (a)(ii) shall be signed either by the secretary or a director of the body corporate.
(6) (a) (i) Within 46 days from the end of a year of assessment, the employer shall give to every employee who is in the employer’s employment on the last day of the year of assessment and from whose relevant emoluments any income levy has been deducted during that year, a certificate showing—
(I) the total amount of income levy deducted from the relevant emoluments of the employee during that year,
(II) the date of commencement within that year of the employment of the employee, where applicable,
(III) the rate of income levy payable as respects the employee, and
(IV) the total relevant emoluments paid to the employee in that year.
(ii) The certificate specified in subparagraph (i) shall be in such form as may be provided or approved by the Revenue Commissioners.
(b) (i) An employer shall, in the case of an employee to whom he or she makes a payment of relevant emoluments, give to the employee, on the cessation of the period of employment to which the payment of income levy in respect of the employee relates, a certificate showing—
(I) the total income levy as respects the employee which the employer was liable to remit for the year of assessment in which the cessation occurs up to and including the date of cessation,
(II) the dates of commencement (where applicable) and cessation within that year of the employment of the individual,
(III) the rate of income levy payable as respects the employee, and
(IV) the total relevant emoluments paid to the employee in that year up to and including the date of cessation.
(ii) The certificate specified in subparagraph (i) shall be in such form as may be provided or approved of by the Revenue Commissioners.
Record keeping.
531E.— (1) An employer shall record the following particulars in respect of each employee to whom payment of relevant emoluments has been made in a year of assessment—
(a) the amount of each payment of relevant emoluments,
(b) the amount of income levy deducted from each such payment,
(c) the total amount of income levy which the employer is liable to remit in respect of each such payment, and
(d) the dates of commencement and cessation within the year of assessment of the employment of the individual, where applicable.
(2) The records specified in subsection (1) shall be in a form approved of by the Revenue Commissioners and shall be retained by employers for not less than 6 years after the end of the year of assessment to which they relate.
Power of inspection.
531F.— The provisions of section 903 and Regulation 32 of the PAYE Regulations, in relation to inspection of records, with any necessary modifications, shall apply to the particulars recorded pursuant to section 531E as they apply to the records specified in those provisions.
Estimation of income levy due for income tax months and for year.
531G.— Sections 989, 990 and 990A shall apply to income levy as they apply to income tax.
Assessment, collection, payment and recovery of income levy on relevant income.
531H.— (1) Income levy payable for a year of assessment in respect of relevant income shall be assessed, charged and paid in all respects as if it was an amount of income tax assessed and charged under the Income Tax Acts, but without regard to section 1017, and may be stated in one sum (in this section referred to as the ‘aggregated sum’) with the amount of income tax contained in any computation of, or assessment or assessments to, income tax made by or on the individual by whom the income levy is payable for the year of assessment.
(2) For the purposes of subsection (1) the income levy may be so stated notwithstanding that there is no amount of income tax contained in the said computation, assessment or assessments, and all the provisions of the Income Tax Acts, other than any such provisions in so far as they relate to the granting of any allowance, deduction or relief, shall apply as if the aggregated sum were a single sum of income tax.
(3) Where income levy is payable for the year of assessment 2009 in respect of relevant income, section 958 shall apply and have effect as if, in accordance with this Part, income levy had been payable for the year of assessment 2008.
Married couples.
531I.— Where an election has been made or is deemed to have been made under section 1018 and has effect for a year of assessment, income levy payable by one spouse shall be charged, collected and recovered as if it were income levy payable by the spouse assessable under section 1017.
False statements.
531J.— The provisions of section 1056 in relation to the making of returns, declarations or statements shall apply, with any necessary modifications, in relation to income levy.
Repayments.
531K.— (1) In any case of underpayment or overpayment of income levy to the Collector-General, payment of the amount not paid or repayment of the amount overpaid, as the case may be, shall be made to or by the Collector-General, as appropriate.
(2) In the case of an individual to whom paragraph (a), (b) or (c) of section 531B(2) applies, any income levy deducted from his or her income shall be repaid to the individual by the Revenue Commissioners on receipt of a valid claim made in such manner as may be approved by the Revenue Commissioners, and for the purposes of such repayment the income levy shall be deemed to be income tax.
(3) Where, at the end of a year of assessment, married persons assessed to tax for the year of assessment under section 1017, one or both of whom have reached the age of 65 years or over at any time during the year of assessment, prove to the satisfaction of the Revenue Commissioners that their aggregate income from all sources is not in excess of twice the limit set out in section 531B(2)(c), then the Revenue Commissioners shall repay such income levy, if any, as has been deducted from that income during that year of assessment.
Restriction on deduction.
531L.— (1) Income levy paid in respect of a year of assessment is in addition to, and does not reduce, any liability which an individual may have in respect of income tax or other taxes under the Tax Acts.
(2) Excess tax credits or reliefs which are available to an individual may not be set against any charge to income levy which is due and payable for a year of assessment.
Application of provisions relating to income tax.
531M.— (1) The provisions of Chapter 1 of Part 40, in relation to appeals, shall apply to income levy as they apply to income tax.
(2) The provisions of Part 47, in relation to penalties, offences, interest and other sanctions, shall apply in relation to income levy as they apply to income tax.
(3) Section 865 shall apply to any repayment of income levy as it applies to income tax.
(4) Section 987 shall apply, with any necessary modifications, to income levy as it applies to income tax.
Care and management.
531N.— Income levy is under the care and management of the Revenue Commissioners and Part 37 shall apply to income levy as it applies to income tax.”,
(b) in section 1002, in the definition of “the Acts”, by inserting the following after paragraph (iii):
“(iiia) Part 18A,”,
(c) in section 1006, in the definition of “the Acts”, by inserting the following after paragraph (a):
“(aa) Part 18A,”,
(d) in section 1006A, in the definition of “the Acts”, by inserting the following after paragraph (a):
“(aa) Part 18A,”,
(e) in section 1078, in the definition of “the Acts”, by inserting the following after paragraph (c):
“(ca) Part 18A,”,
and
(f) in section 1079, in the definition of “the Acts”, by inserting the following after paragraph (c):
“(ca) Part 18A,”.
1OJ No. L149, 5.7.1971, p.2
num: 3
paragraphs: — (1) The Principal Act is amended—
(a) by inserting the following after Part 18A (inserted by section 2 ):
“PART 18B
Parking Levy in Urban Areas
Interpretation (Part 18B).
531O.— In this Part—
‘ car ’ means a mechanically propelled road vehicle designed, constructed or adapted for the carriage of the driver or the driver and one or more other persons, other than—
(a) a motor-cycle (within the meaning of section 121),
(b) an official vehicle,
(c) a van (within the meaning of section 121A) where an employee is required by the employer to use the van in the performance of the duties of his or her office or employment, or
(d) a vehicle, other than a van, of a type not commonly used as a private vehicle and unsuitable to be so used;
‘ disabled person’s parking permit ’ means a permit granted in accordance with Article 43 of the Road Traffic (Traffic and Parking) Regulations 1997 ( S.I. No. 182 of 1997 );
‘ emoluments ’ means emoluments to which Chapter 4 of Part 42 applies;
‘ employee ’ has the same meaning as it has for the purposes of the PAYE Regulations;
‘ employer ’ has the same meaning as it has for the purposes of the PAYE Regulations;
‘ entitlement to use a parking space ’ shall be construed in accordance with section 531Q;
‘ fire authority ’ has the same meaning as it has for the purposes of the Fire Services Act 1981 ;
‘ maternity leave ’ means the period of leave referred to in section 8 (as amended by section 2 of the Maternity Protection (Amendment) Act 2004 and by the Maternity Protection Act 1994 (Extension of Periods of Leave) Order 2006) of the Maternity Protection Act 1994;
‘ mechanically propelled road vehicle ’ includes a vehicle the means of propulsion of which is electrical or partly electrical and partly mechanical;
‘ Minister ’ means the Minister for Finance;
‘ net emoluments ’ means emoluments (less allowable contributions (within the meaning of Regulation 41 of the PAYE Regulations)) after the deduction, in accordance with—
(a) the PAYE Regulations, of income tax,
(b) the Social Welfare (Consolidated Contributions and Insurability) Regulations 1996 ( S.I. No. 312 of 1996 ), of a contribution within the meaning of those regulations,
(c) the Health Contributions Regulations 1979 ( S.I. No. 107 of 1979 ), of a health contribution, and
(d) Part 18A (as inserted by the Finance (No. 2) Act 2008), of income levy;
‘ official vehicle ’ means a vehicle which is owned or provided by the State or by a State authority where an employee of the State or of such an authority is required by the employer to use the vehicle in the performance of the duties of his or her office or employment;
‘ parking levy ’ means the tax, provided for in section 531T, on an entitlement to use a parking space in an urban area;
‘ parking space ’ means any area or part of an area on, at, or in which it is possible to park a vehicle and includes any part of a building, erection or structure (including a moveable structure);
‘ PAYE Regulations ’ means the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 );
‘ personal public service number ’ has the same meaning as in section 262 of the Social Welfare Consolidation Act 2005 ;
‘ public sector employee ’ means a person whose emoluments are paid, funded or partly funded directly or indirectly by the State;
‘ relevant local authority ’ means the city council (within the meaning of section 2 of the Local Government Act 2001 ) of Cork, Dublin, Galway, Limerick or Waterford;
‘ State authority ’ means the Garda SÃ­ochÃ¡na, the Defence Forces, the Health Service Executive (in so far as it relates to the ambulance service), the Revenue Commissioners (in so far as it relates to the Customs service), a fire authority or such other body as may be prescribed by order of the Minister under section 531P(1);
‘ urban area ’ means an area or areas designated by order of the Minister under section 531P(1);
‘ year of assessment ’ means a calendar year.
Urban areas to which parking levy applies and making of orders by the Minister.
531P.— (1) The Minister may, following consultation with any other Minister of the Government as he or she considers appropriate in the circumstances, by order—
(a) designate that an area or areas which is or are within the administrative area (within the meaning of section 2 of the Local Government Act 2001 ) of a relevant local authority shall be an urban area for the purposes of this Part,
(b) prescribe that a body shall be a State authority for the purposes of this Part, and
(c) provide for the date from which this Part shall have effect.
(2) Every order made by the Minister under subsection (1) shall be laid before DÃ¡il Ãireann as soon as may be after it is made and, if a resolution annulling the order is passed by DÃ¡il Ãireann within the next 21 days on which DÃ¡il Ãireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.
Entitlement to use a parking space.
531Q.— (1) An employee shall be regarded as having an entitlement to use a parking space for the purposes of this Part where any one or more of the following circumstances apply:
(a) the employee holds or has been issued with an authorisation in the form of a badge, permit, sticker or any other form of authorisation to use a parking space or is otherwise given permission (including oral permission) to use a parking space;
(b) the employee holds or has been issued with any form or means of access to a parking space;
(c) the employee has been allocated a dedicated parking space;
(d) the employee has been allocated a parking space on a shared basis or other similar arrangement;
(e) the availability of a parking space to the employee is on the basis of a system commonly known as on a first-come — first-served basis.
(2) (a) An employee shall not be regarded as having an entitlement to use a parking space for the purposes of this Part where the use of the space by the employee arises as a result of authorisation, permission or access occasionally given to the employee and the total number of days—
(i) covered by such authorisation, permission or access, and
(ii) of actual use of the space by the employee,
is not more than 10 days in a year of assessment.
(b) For the purposes of paragraph (a)—
(i) authorisation, permission or access given for part of a day shall be regarded as given for a full day, and
(ii) use of a parking space for part of a day shall be regarded as use of the space for a full day.
(3) An employee shall cease to be regarded as having an entitlement to use a parking space for the purposes of this Part where—
(a) (i) he or she disclaims, in writing or in an electronic format, entitlement to use a parking space, as referred to in subsection (1), or
(ii) the entitlement to use a parking space lapses or such entitlement is withdrawn,
(b) if relevant, the employee returns to the employer, or to the person who provides the parking space as appropriate, either or both the form of authorisation and the form or means of access which he or she holds or which was issued to him or her, and
(c) the employee ceases to use a parking space provided directly or indirectly by his or her employer.
(4) For the purposes of subsection (1)(a), permission to use a parking space shall be regarded as given to an employee where an employer enters into an arrangement or agreement with the employee or any other person whereby a parking space is provided for the use of the employee.
Provision of parking space by employer.
531R.— For the purposes of this Part, a parking space shall be regarded as provided directly or indirectly by an employer for the use of an employee where—
(a) the employer provides the parking space on, at or in any premises which is owned or occupied by the employer,
(b) the parking space is provided on, at or in any premises which is owned or occupied by a person connected (within the meaning of section 10) with the employer,
(c) the employer enters into an arrangement or agreement with an employee or any other person whereby a parking space is provided for the use of that employee or any other employee of the employer, or
(d) in the case of a public sector employee to whom paragraph (a), (b) or (c) does not apply, the person who provides the parking space to that employee is funded or part funded directly or indirectly by the employer of that employee.
Exemption for certain persons.
531S.— The parking levy provided for under this Part shall not apply—
(a) to an employee who is the holder of a valid disabled person’s parking permit,
(b) to the use of a parking space by an employee of a State or civil emergency service where the use of that space relates solely to a response, required of the employee by the employer, to an emergency situation, or
(c) to occasional use of a parking space by a retired person where that person’s former employer or, where section 531R(d) applies, the person who provided the parking space to the retired person before he or she retired, continues to make a parking space available to him or her.
Charge to parking levy.
531T.— Subject to section 531S, where—
(a) an employee has an entitlement to use a parking space in an urban area for the parking of a car, and
(b) such space is provided directly or indirectly by his or her employer,
then a tax to be known as ‘parking levy’ shall be charged, levied and paid in accordance with this Part in relation to such entitlement.
Rate of charge to parking levy.
531U.— (1) Subject to the subsequent provisions of this section, the amount of the parking levy in relation to each employee—
(a) shall be €200 in relation to each year of assessment, or
(b) in relation to the year of assessment in which this Part takes effect, shall be €200 reduced to an amount which bears the same proportion to €200 as the period consisting of the part of that year in which this Part has effect bears to the full year of assessment.
(2) Where an employee has been allocated a parking space on a shared basis, or other similar arrangement including on a first-come — first-served basis as referred to in section 531Q(1)(e), the amount of the parking levy shall—
(a) where the ratio of employees sharing a parking space to a space is less than two to one, be the appropriate amount referred to in subsection (1), and
(b) where the ratio of employees sharing a parking space to a space is two to one or more than two to one, be reduced to 50 per cent of the appropriate amount referred to in subsection (1).
(3) Where the normal pattern of work required of an employee involves the employee working only a portion of the full working week or year, then the amount of the parking levy determined in accordance with subsection (1) or (2) shall be reduced to an amount which bears the same proportion to the amount so determined as the portion of the full working week or year required to be worked by the employee bears to the full working week or year, subject to the amount of the levy being not less than 50 per cent of the amount determined in accordance with subsection (1) or (2) as the case may be.
(4) Where an employee’s entitlement to use a parking space applies for part of a year of assessment or part of the period referred to in subsection (1)(b), then the amount of the parking levy determined in accordance with subsection (1), (2) or (3), as the case may be, shall be reduced to an amount which bears the same proportion to the amount so determined as the part of the year or period during which the employee has such entitlement bears to the full period or year.
(5) An employee’s entitlement to use a parking space for the period during which the employee is on maternity leave and for a period of 10 weeks immediately prior to the date the employee commences such leave shall be disregarded for the purposes of subsection (4).
(6) Where the pattern of work required of an employee involves starting or finishing work after 9 o’clock in the evening or before 7 o’clock in the morning, that part of a year of assessment or that part of the period referred to in subsection (1)(b) in which such pattern of work applies shall be disregarded for the purposes of subsection (4).
Deduction of levy by employer.
531V.— (1) Where section 531T applies, an employer shall—
(a) deduct the amount of the parking levy, determined in accordance with section 531U, from the employee’s net emoluments for the period during which he or she has an entitlement to use a parking space and such deduction shall be made at a time and frequency which corresponds with the payment of the employee’s emoluments,
(b) be accountable for the amount of the parking levy deductible, and liable to pay that amount to the Revenue Commissioners as if it were an amount of income tax deductible in accordance with the PAYE Regulations, and
(c) remit to the Collector-General the total of all amounts of parking levy which the employer was liable to deduct from employees and such remittance shall be made at the same time and in the same manner as the employer is required under Regulation 28 or, as the case may be, under Regulation 29 of the PAYE Regulations to remit amounts of tax which the employer was liable to deduct from emoluments paid to employees.
(2) Where an amount of parking levy is, in accordance with this Part, deducted by an employer from the net emoluments of an employee—
(a) the employee shall allow such deduction on the receipt of the residue of the net emoluments, and
(b) the employer shall be acquitted and discharged of such amount as is represented by the deduction, as if the amount had actually been paid.
No relief for any payment in relation to parking levy.
531W.— Notwithstanding any provision of the Tax Acts, no sum shall—
(a) in the case of an employee, be allowed to the employee in relation to a parking levy payable under this Part—
(i) as a deduction under section 114, or
(ii) as a credit against any liability arising under the Tax Acts,
or
(b) in the case of an employer—
num: 4
paragraphs: — As respects the year of assessment 2009 and subsequent years of assessment, section 15 of the Principal Act is amended—
(a) by substituting “€27,400” for “€26,400” (inserted by the Finance Act 2008 ) in subsection (3), and
(b) by substituting the following Table for the Table (as so inserted) to that section:
“TABLE
PART 1
Part of taxable income
Rate of tax
Description of rate
(1)
(2)
(3)
The first €36,400
20 per cent
the standard rate
The remainder
41 per cent
the higher rate
PART 2
Part of taxable income
Rate of tax
Description of rate
(1)
(2)
(3)
The first €40,400
20 per cent
the standard rate
The remainder
41 per cent
the higher rate
PART 3
Part of taxable income
Rate of tax
Description of rate
(1)
(2)
(3)
The first €45,400
20 per cent
the standard rate
The remainder
41 per cent
the higher rate
”.
num: 5
paragraphs: — As respects the year of assessment 2009 and subsequent years of assessment, section 122 of the Principal Act is amended in the definition of the “ specified rate ” in subsection (1)(a)—
(a) by substituting “5 per cent” for “5.5 per cent” (inserted by the Finance Act 2008 ) in both places where it occurs, and
(b) by substituting “12.5 per cent” for “13 per cent” (inserted by the Finance Act 2008 ).
num: 6
paragraphs: — (1) Section 121 of the Principal Act is amended—
(a) in subsection (1) in the definition of “business mileage for a year of assessment” by substituting “whole kilometres” for “whole miles”,
(b) in subsection (3)—
(i) by deleting paragraph (c) for the year of assessment 2009 and subsequent years,
(ii) by inserting the following after paragraph (c):
“(d) This subsection is subject to subsection (4B) for years of assessment 2009 and subsequent years.”,
(c) in subsection (4)—
(i) in paragraph (a) by substituting “24,000 kilometres” for “15,000 miles”,
(ii) in paragraph (c)(i)—
(I) by substituting “24,000” for “15,000” in each place where it occurs, and
(II) by substituting the following for the Table to that subsection—
“TABLE
Business mileage lower limit
Business mileage upper limit
Percentage of original market value
(1)
(2)
(3)
kilometres
kilometres
per cent
24,000
32,000
24
32,000
40,000
18
40,000
48,000
12
48,000
—
6
”,
(iii) by inserting the following after paragraph (c):
“(d) This subsection is subject to subsection (4B) for years of assessment 2009 and subsequent years.”,
(d) by deleting subsection (4A) for the year of assessment 2009 and subsequent years,
(e) by inserting the following after subsection (4A):
“(4B) (a) Where a new car is provided for the first time for the year of assessment 2009 or any subsequent year, the cash equivalent of the benefit shall be an amount determined by the formula:
Original market value × A
where—
A is a percentage, based on vehicle categories and business mileage, determined in accordance with column (3), (4) or (5), as the case may be, of Table A to this subsection.
(b) In Table A to this subsection, any percentage shown in column (3), (4) or (5), as the case may be, shall be the percentage applicable to any business mileage for a year of assessment which—
(i) exceeds the lower limit (if any) shown in column (1), and
(ii) does not exceed the upper limit (if any) shown in column (2),
opposite the mention of that percentage in column (3), (4) or (5), as the case may be.
(c) Any reference in this section to a vehicle in any of the vehicle Categories A to G as set out in the first column of Table B to this subsection is a reference to a vehicle whose CO 2 emissions, confirmed by reference to the relevant EC type approval certificate or EC certificate of conformity, are set out in the corresponding entry in the second column of Table B to this subsection.
TABLE A
Business mileage
Vehicle Categories
Vehicle Categories
Vehicle Categories
lower limit
upper limit
A, B and C
D and E
F and G
(1)
(2)
(3)
(4)
(5)
kilometres
kilometres
per cent
per cent
per cent
—
24,000
30
35
40
24,000
32,000
24
28
32
32,000
40,000
18
21
24
40,000
48,000
12
14
16
48,000
—
6
7
8
TABLE B
Vehicle Category
CO 2 Emissions (CO 2 g/km)
(1)
(2)
A
0g/km up to and including 120g/km
B
More than 120g/km up to and including 140g/km
C
More than 140g/km up to and including 155g/km
D
More than 155g/km up to and including 170g/km
E
More than 170g/km up to and including 190g/km
F
More than 190g/km up to and including 225g/km
G
More than 225g/km.
”,
(f) in subsection (5)—
(i) in subparagraph (ii) by substituting “8,000 kilometres” for “5,000 miles”, and
(ii) by deleting subparagraph (aa) for the year of assessment 2009 and subsequent years,
and
(g) in subsection (6)—
(i) in paragraph (b) by substituting “by deducting 8,000 from the total number of kilometres travelled” for “by deducting 5,000 from the total number of miles travelled”, and
(ii) by deleting paragraph (bb) for the year of assessment 2009 and subsequent years.
(2) This section comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.
num: 7
paragraphs: — (1) Chapter 3 of Part 5 of the Principal Act is amended—
(a) in section 118 by inserting the following after subsection (5F):
“(5G) (a) Subject to paragraph (c) of this subsection, subsection (1) shall not apply to expense of up to €1,000 incurred by the body corporate in, or in connection with, the provision for a director or employee of a bicycle or bicycle safety equipment, where—
(i) the bicycle and bicycle safety equipment provided is unused and not second-hand,
(ii) the director or employee uses the bicycle or bicycle safety equipment, or the bicycle and the bicycle safety equipment, as the case may be, mainly for qualifying journeys, and
(iii) bicycles or bicycle safety equipment, or bicycles and bicycle safety equipment, as the case may be, are made available generally to directors and employees of the body corporate.
(b) In this subsection—
‘ bicycle ’ means a pedal cycle;
‘ bicycle safety equipment ’ includes—
(i) bicycle bells and bulb horns,
(ii) bicycle helmets that conform to European product safety standard CEN/EN 1078,
(iii) bicycle lights, including dynamo packs,
(iv) bicycle reflectors and reflective clothing, and
(v) such other safety equipment as the Revenue Commissioners may allow;
‘ normal place of work ’ means the place where the director or employee normally performs the duties of his or her office or employment;
‘ pedal cycle ’ means—
(i) a bicycle or tricycle which is intended or adapted for propulsion solely by the physical exertions of a person or persons seated thereon, or
(ii) a pedelec,
but does not include a moped or a scooter;
‘ pedelec ’ means a bicycle or tricycle which is equipped with an auxiliary electric motor having a maximum continuous rated power of 0.25 kilowatts, of which output is progressively reduced and finally cut off as the vehicle reaches a speed of 25 kilometres per hour, or sooner if the cyclist stops pedalling;
‘ qualifying journey ’, in relation to a director or employee, means the whole or part of a journey—
(i) between the director’s or employee’s home and normal place of work, or
(ii) between the director’s or employee’s normal place of work and another place of work, where the director or employee is travelling in the performance of the duties of his or her office or employment.
(c) A director or employee shall not, by virtue of this subsection, be relieved from a charge to income tax under subsection (1) more than once in any period of 5 consecutive years of assessment, commencing with the year of assessment in which the director or employee concerned is first provided with a bicycle or bicycle safety equipment.”,
(b) in section 118B—
(i) in subsection (1) in the definition of “ salary sacrifice agreement ” by substituting “‘salary sacrifice arrangement’ ” for “salary sacrifice agreement”,
(ii) in subsection (2)—
(I) in paragraph (a)(i) by deleting “and” and in paragraph (a)(ii) by substituting “section 510(4), and” for “section 510(4),”, and
(II) by inserting the following after paragraph (a)(ii):
“(iii) a bicycle or bicycle safety equipment provided to a director or employee and which is exempt from a charge to tax by virtue of section 118(5G),”,
and
(iii) in subsection (5) by substituting “salary sacrifice arrangement” for “salary sacrifice agreement”.
(2) This section applies in respect of expense incurred on or after 1 January 2009.
num: 8
paragraphs: — As respects the year of assessment 2009 and subsequent years of assessment, section 469 of the Principal Act is amended—
(a) in subsection (1)—
(i) by inserting the following definition before the definition of “ educational psychologist ”:
“ ‘ appropriate percentage ’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;”,
and
(ii) by inserting the following definition before the definition of “ speech and language therapist ”:
“ ‘ specified amount ’, in relation to a year of assessment, means the amount of expenditure which qualifies for income tax relief in accordance with this section;”,
and
(b) by substituting the following for subsection (2):
“(2) Subject to this section, where an individual for a year of assessment proves that in the year of assessment he or she defrayed health expenses incurred for the provision of health care, the income tax to be charged on the individual, other than in accordance with section 16(2) for that year of assessment shall be reduced by the lesser of—
(a) the amount equal to the appropriate percentage of the specified amount, and
(b) the amount which reduces that income tax to nil,
but, where an individual proves that he or she defrayed health expenses incurred for the provision of health care in the nature of maintenance or treatment in a nursing home, the individual shall be entitled for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax, to have a deduction made from his or her total income of the amount proved to have been so defrayed.”.
num: 9
paragraphs: — (1) The Principal Act is amended—
num: 10
paragraphs: — (1) Section 128 of the Principal Act is amended—
(a) by substituting the following for subsection (6):
“(6) (a) Subject to subsection (7), a person shall, in the case of a right granted by reason of the person’s office or employment, be chargeable to tax under this section in respect of a gain realised by another person—
(i) if the right was granted to that other person,
(ii) if the other person acquired the right otherwise than by or under an assignment made by means of a bargain at arm’s length,
(iii) if the 2 persons are connected persons at the time when the gain is realised, or
(iv) if the person benefits directly or indirectly from the exercise, assignment or release of the right by the other person;
but in a case within subparagraphs (ii), (iii), or (iv), the gain realised shall be treated as reduced by the amount of any gain realised by a previous holder on an assignment of the right.
(b) For the purposes of this subsection, a gain realised by another person shall include a gain realised on the exercise of a right by the person in respect of whose office or employment the right was granted, where that person exercises the right as nominee or bare trustee of the other person, or otherwise on behalf of the other person.”,
(b) in subsection (7) by substituting “subparagraph (ii) or (iii) of subsection (6)(a)” for “subsection (6)(b)”, and
(c) by substituting the following for subsection (8):
“(8) (a) Where a right (referred to in this subsection as the ‘original right’) is assigned or released and the whole or part of the consideration for the assignment or release consists of or comprises another right (referred to in this subsection as the ‘new right’) the new right shall not be treated as consideration for the assignment or release; but this section shall apply in relation to the new right as it applies in relation to the original right and as if the consideration for its acquisition did not include the value of the original right but did include the amount or value of the consideration given for the grant of the original right in so far as that has not been offset by any valuable consideration for the assignment or release other than the consideration consisting of the new right.
(b) The operation of paragraph (a) shall not prevent a charge arising under this section on a gain realised by the exercise of the original right.”.
(2) This section applies as on and from 20 November 2008.
num: 11
paragraphs: — Schedule 29 to the Principal Act is amended in column 3—
(a) by inserting the following before “section 238(3)”:
“section 128C(15)
section 128D(8)
section128E(9)”,
and
(b) by inserting the following before “section 904”:
“section 896A”.
num: 12
paragraphs: — (1) Chapter 5 of Part 5 of the Principal Act is amended by inserting the following after section 128C:
“Tax treatment of directors of companies and employees who acquire restricted shares.
128D.— (1) In this section—
‘ director ’ and ‘ employee ’ have the meanings, respectively, given to them by section 770(1);
‘ employer ’ means the company in which the director or employee holds his or her office or employment;
‘ market value ’ shall be construed in accordance with section 548;
‘ restricted shares ’ shall be construed in accordance with subsection (3);
‘ shares ’ includes stock;
‘ specified period ’ has the same meaning as in subsection (3)(a).
(2) Subject to subsection (7), this section applies where—
(a) a director or employee acquires shares (including shares acquired on the exercise of a right to which section 128 applies) in a company as a director or employee of that company or of another company,
(b) the shares are shares in the company in which the director or employee holds his or her office or employment or in a company which has control (within the meaning of section 432) of that company, and
(c) at the time of acquisition, the shares are restricted shares.
(3) For the purposes of this section, shares are restricted shares if—
(a) there is a written contract or agreement in place under the terms of which there is a restriction on the freedom of the director or employee by whom the shares are held to assign, charge, pledge as security for a loan or other debt, transfer, or otherwise dispose of the shares for a period of not less than one year (in this section referred to as the ‘ specified period ’),
(b) the contract or agreement is in place for bona fide commercial purposes and does not form part of a scheme or arrangement of which the main purpose or one of the main purposes is the avoidance of tax,
(c) the shares cannot be assigned, charged, pledged as security for a loan or other debt, transferred, or otherwise disposed of in any circumstances during the specified period, other than—
(i) on the death of the director or employee, or
(ii) as a consequence of the director or employee agreeing to—
(I) accept an offer for the shares (in this clause referred to as the ‘original shares’) if the acceptance or agreement would result in a new holding (within the meaning of section 584) being equated with the original shares for the purposes of capital gains tax,
(II) a transaction affecting the shares or such of the shares as are of a particular class if the transaction would be entered into pursuant to a compromise, arrangement or scheme applicable to or affecting all the ordinary share capital of the company in question or, as the case may be, all the shares of the same class as the shares acquired by the director or employee, or
(III) accept an offer of cash, with or without other assets, for the shares if the offer forms part of a general offer made to holders of shares of the same class as the shares acquired by the director or employee or of shares in the same company and made in the first instance on a condition such that if it is satisfied the person making the offer will have control (within the meaning of section 432) of that company,
and
(d) during the specified period, the shares are held in a trust established by the employer for the benefit of employees and directors, or held under such other arrangements as the Revenue Commissioners may allow.
(4) Where this section applies—
num: 13
paragraphs: — (1) The Principal Act is amended by inserting the following after section 825A:
“825B.— (1) In this section—
‘ associated company ’, in relation to a relevant employer, means a company which is that employer’s associated company within the meaning of section 432 and which is incorporated or resident in a country or jurisdiction which is not a party to the EEA agreement, but with the government of which arrangements are for the time being in force by virtue of section 826(1);
‘ EEA agreement ’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;
‘ emoluments ’ has the same meaning as in Chapter 4 of Part 42;
‘ relevant emoluments ’, in relation to a tax year, means emoluments that are—
(a) paid by a relevant employer or an associated company of that relevant employer to a relevant employee, and
num: 14
paragraphs: — As respects the year of assessment 2009 and subsequent years of assessment, section 244 of the Principal Act is amended—
(a) in subsection (2), by substituting the following for paragraph (a):
“(a) In this subsection ‘appropriate percentage’, in relation to a year of assessment, means—
(i) where relievable interest is determined by reference to paragraph (i) or (ii) of the definition of ‘relievable interest’, 15 per cent for that year,
(ii) where relievable interest is determined by reference to paragraph (iii) or (iv) of the definition of ‘relievable interest’:
(I) 25 per cent for the first and second years of assessment for which there is an entitlement to relief under this section,
(II) 22.5 per cent for the third, fourth and fifth years of assessment for which there is an entitlement to relief under this section, and
(III) a percentage equal to the standard rate of tax for the sixth and seventh years of assessment for which there is an entitlement to relief under this section.”,
(b) in subsection (1)(c) and (3)(a) by substituting “paragraph” for “subparagraph” in each place where it occurs.
num: 15
paragraphs: — Section 819 of the Principal Act is amended by substituting the following for subsection (4):
“(4) For the purposes of this section—
(a) as respects the year of assessment 2008 and previous years of assessment, an individual shall be deemed to be present in the State for a day if the individual is present in the State at the end of the day, and
(b) as respects the year of assessment 2009 and subsequent years of assessment, an individual shall be deemed to be present in the State for a day if the individual is present in the State at any time during that day.”.
num: 16
paragraphs: — (1) Part 30 of the Principal Act is amended—
(a) in section 787O(1) by substituting the following for the definition of “B” in the formula in paragraph (b) of the definition of “ personal fund threshold ” and “ standard fund threshold ”:
“B is—
(i) the earnings adjustment factor which may be designated in writing by the Minister for Finance in December of the year of assessment preceding the relevant year, a note of which shall be published as soon as practicable in the Iris OifigiÃºil, or
(ii) where no earnings adjustment factor is designated by the Minister for Finance, 1;”,
and
(b) in section 790A—
(i) by substituting the following for subsection (2):
“(2) For a year of assessment (in this subsection referred to as the ‘relevant year’) after the year of assessment 2006 the earnings limit shall be an amount equivalent to the amount determined by the formula—
A × B
where—
A is the earnings limit for the year of assessment immediately preceding the relevant year, and
B is—
(i) the earnings adjustment factor which may be designated in writing by the Minister for Finance in December of the year of assessment preceding the relevant year, a note of which shall be published as soon as practicable in the Iris OifigiÃºil, or
(ii) where no earnings adjustment factor is designated by the Minister for Finance, 1.”,
and
(ii) by inserting the following after subsection (2):
“(3) Notwithstanding subsection (2), for the purposes of subsection (1) the earnings limit for the year of assessment 2009 shall be €150,000.”.
(2) (a) Subject to paragraphs (b) and (c), subsection (1) has effect as on and from 1 January 2009.
(b) Paragraph (a) of subsection (1) is deemed to have effect as on and from 7 December 2005.
(c) Paragraph (b)(i) of subsection (1) is deemed to have effect as on and from 1 January 2006.
num: 17
paragraphs: — Section 659 of the Principal Act is amended in subsection (1)(c) by substituting “1 January 2011” for “1 January 2009”.
num: 18
paragraphs: — (1) Chapter 2 of Part 23 of the Principal Act is amended—
(a) in section 666(4) by substituting “31 December 2010” for “31 December 2008” in paragraph (a) and “year 2010” for “year 2008” in paragraph (b), and
(b) in section 667B(5)(b) by substituting “31 December 2010” for “31 December 2008”.
(2) Subsection (1) comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.
num: 19
paragraphs: — Section 279 of the Principal Act is amended, as respects a sale of the relevant interest in a building or structure which occurs on or after 14 October 2008—
(a) in subsection (2) by substituting “2 years” for “one year” in both places where it occurs, and
(b) in subsection (3) by substituting “2 years” for “one year” in each place where it occurs.
num: 20
paragraphs: — (1) Section 26(1) of the Finance Act 2008 is amended—
(a) in paragraph (a)(iii) (which inserts subsection (2BA) into section 268 of the Principal Act) by substituting “8 in-patient beds” for “20 in-patient beds” in the said subsection (2BA), and
(b) in paragraph (a)(iv) (which amends section 268(9) of the Principal Act) by substituting the following for clause (II):
“(II) by inserting the following after paragraph (i):
‘(j) by reference to paragraph (m), as respects capital expenditure incurred on or after the date of the passing of the Finance Act 2008 .’,”.
(2) The amendments (effected by subsection (1)) to section 268 of the Principal Act are deemed to have been made with effect from the date of the passing of the Finance Act 2008 and shall come into operation in accordance with section 26 (2) of the Finance Act 2008 .
num: 21
paragraphs: — (1) The Principal Act is amended by inserting the following after Part 11C (inserted by the Finance Act 2008 ):
“PART 11D
Income Tax and Corporation Tax: Reliefs for the Removal and Relocation of Certain Industrial Facilities
Interpretation (Part 11D).
380Q.— (1) In this Part—
‘ dangerous substance ’ has the meaning assigned to it by section 3 of the European Communities (Control of Major Accident Hazards Involving Dangerous Substances) Regulations 2000 ( S.I. No. 476 of 2000 );
‘enhancement expenditure’, in relation to establishment land, means the amount of any capital expenditure wholly and exclusively incurred on the land for the purpose of enhancing the value of the land, being expenditure reflected in the state or nature of the land at the time of the disposal but does not include expenditure for which relief may be claimed under this Part;
‘ establishment ’, in relation to a person who carries on a relevant trade, means the whole area under that person’s control where dangerous substances are present in one or more installations, including common or related infrastructure or activities;
‘ establishment land ’, in relation to a relevant trade, means the area of land of the establishment of which the old installation is a unit;
‘ local authority ’ means—
(a) in the case of a city, the city council, and
(b) in the case of a county, the county council,
being a city council or a county council, as the case may be, for the purposes of the Local Government Act 2001 ;
‘ installation ’ means a unit within an establishment in which dangerous substances are produced, used, handled or stored, and includes—
(a) equipment, structures, pipework, machinery and tools,
(b) docks and unloading quays serving the installation, and
(c) jetties, warehouses or similar structures, whether floating or not,
which are necessary for the operation of the installation;
‘ land ’ includes any interest in land and references to establishment land include references to any interest in that land;
‘market value’, in relation to the whole or part of establishment land, means the price that whole or part might reasonably be expected to fetch on a sale in the open market if the old installation was removed;
‘ new installation ’ means an installation which replaces an old installation;
‘ old installation ’ means an installation located in an urban dockland area which, by agreement with the relevant local authority, an operator relocates to facilitate the regeneration of that area;
‘ operator ’ means any person who in the course of a trade operates an establishment or installation;
‘ relocation expenditure ’ means relevant expenses incurred by a person who carries on a relevant trade in an establishment situated within an urban dockland area in relocating that trade to an establishment in a new location;
‘ relevant expenses ’ means capital expenditure, incurred in connection with the removal of an old installation and the set up of a replacement installation including the cost of acquiring such land as is necessary for the operation of the new installation but not including expenditure relating to—
(a) any building or structure on that land other than a building or structure which is demolished in the course of the set-up,
(b) the construction of any building or structure, or
(c) machinery or plant;
‘ relevant trade ’ means a trade of operating an establishment or installation;
‘ urban dockland area ’ means a dockland area which is the subject of either a local area plan adopted by the relevant local authority under the Planning and Development Acts 2000 to 2006 or a planning scheme approved by the Minister for the Environment, Heritage and Local Government under section 25 of the Dublin Docklands Development Authority Act 1997 and comprises an area designated by that Minister, with the approval of the Minister for Finance, to be regenerated for the purposes set out in the local area plan or planning scheme.
(2) This Part shall not apply to any expenditure incurred on or after 1 January 2014.
Relocation allowance.
380R.— (1) A person carrying on a relevant trade, who incurs relocation expenditure in relation to that trade, may claim an allowance (in this section referred to as a ‘relocation allowance’) under this section in respect of that expenditure.
(2) A relocation allowance made to a person carrying on a relevant trade shall be made in taxing the trade.
(3) Where a person carrying on a relevant trade owns or owned establishment land and the whole of that land has not been disposed of at the end of the chargeable period, then the following provisions shall apply:
(a) no amount incurred in the chargeable period in respect of the cost of acquiring land may be included as relevant expenses unless the aggregate of the expenditure incurred in acquiring land necessary for the operation of the new installation in that and previous chargeable periods exceeds the market value of the establishment land at the date relevant expenses were first incurred, and
(b) for the first chargeable period in which the aggregate of the expenditure incurred in acquiring land necessary for the operation of the new installation exceeds the market value mentioned in paragraph (a), the amount to be included is the excess.
(4) Where a person carrying on a relevant trade owned establishment land in relation to that trade and is entitled to a relocation allowance for a chargeable period, which is or is subsequent to the first chargeable period at or before the end of which the whole of that land is disposed of, then the following provisions shall apply:
(a) no expenditure incurred in the chargeable period in respect of the cost of acquiring land may be included as relevant expenses unless the aggregate of the expenditure incurred on acquiring land necessary for the operation of the new installation in that and previous chargeable periods exceeds the total consideration received on the disposal of the establishment land reduced by any enhancement expenditure in relation to that establishment land incurred by that person at a time after all the old installations have been removed from that land, and
(b) the amount of expenditure which is included in relevant expenditure in respect of the cost of acquisition of land shall not exceed that excess.
(5) Notwithstanding section 380Q(2), where, in a chargeable period, a person carrying on a relevant trade in respect of which a relocation allowance has been granted under subsection (2) for previous chargeable periods, disposes of the whole or part of the establishment land in relation to that trade and as a consequence the whole of the establishment land in relation to that trade is disposed of at the end of that period, then the following provisions shall apply:
(a) if the aggregate of all consideration received on disposals of all establishment land reduced by any enhancement expenditure in relation to that establishment land incurred by that person at a time after all the old installations have been removed from that land—
(i) is less than the market value mentioned in subsection (3)(a), then a relocation allowance under subsection (2) shall be made in respect of the difference, in addition to a relocation allowance (if any) which may be due in respect of expenditure incurred in the chargeable period,
(ii) is greater than the market value mentioned in subsection (3)(a), then the difference shall, subject to paragraph (b), be treated as a trading receipt of that trade,
and
(b) the amount treated as a trading receipt of the trade under paragraph (a)(ii) shall not exceed the aggregate of relocation allowances in respect of establishment land allowed in previous chargeable periods.
(6) Where a person carrying on a relevant trade does not dispose of the whole of the establishment land in relation to the relevant trade within a period of 2 years beginning on the date on which that person ceases to use the old installation for the purposes of a relevant trade, then the person shall be deemed to have disposed of the establishment land in relation to that trade on the last day of the chargeable period in which that period ends for consideration equal to the aggregate of all consideration (if any) received in respect of parts of establishment land which have been disposed of and the market value of the whole or part of such land which the person owns at that date reduced by any enhancement expenditure in relation to that establishment land incurred by that person at a time after all the old installations have been removed from that land.
(7) Where land is appropriated as trading stock, section 596(1) shall apply for the purposes of this section as it applies for the purposes of the Capital Gains Tax Acts.
(8) Where the relevant trade ceases before all establishment land in relation to that trade is disposed of, then the remaining land shall be deemed, for the purposes of this section, to have been disposed of on the date of cessation of the trade for its market value at that date.
(9) Where the whole or part of the establishment land is owned by a person (in this subsection referred to as the ‘first mentioned person’) connected with the person claiming relief under this Part, then that whole or part, as the case may be, shall be treated for the purposes of this Part as owned by the person claiming relief and this Part shall apply as if all actions of the first mentioned person in relation to the whole or part were actions of the person claiming relief.
Additional allowance for relocation expenditure.
380S.— (1) Where a person carrying on a relevant trade incurs relocation expenditure in relation to which section 380R applies, there shall, in addition to any relocation allowance made in respect of such expenditure, be made to the person in taxing the trade for the chargeable period for which such relocation allowance is made, an additional relocation allowance (which shall be known as an ‘additional relocation allowance’) equal to 50 per cent of the expenditure and section 380R(2) shall apply to such additional relocation allowance as if it were an allowance under that subsection.
(2) Where, in a chargeable period, an amount is treated as a trading receipt of a trade under section 380R(5)(b), an additional amount equal to 50 per cent of that amount shall also be treated as a trading receipt of the trade for that chargeable period.
Allowance for machinery or plant.
380T.— (1) Where, for any chargeable period, expenditure incurred by a person on a new installation includes expenditure (in this section referred to as ‘qualifying expenditure’) on the provision of new machinery or new plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) provided for use in the relevant trade, then the following provisions shall apply:
(a) that person may claim that the wear and tear allowance to be made under section 284 to the person in respect of that expenditure is to be determined as if the reference to 12.5 per cent in section 284(2)(ad) were a reference to 100 per cent, and
(b) there shall be made to the person for the chargeable period related to the expenditure an allowance equal to 50 per cent of the qualifying expenditure in relation to that plant or machinery, and such allowance shall be made in taxing the relevant trade.
(2) For the purposes of ascertaining the amount of any allowance to be made to any person under section 284 in respect of expenditure incurred during a chargeable period on any qualifying machinery or plant, no account shall be taken of an allowance under subsection (1)(b) in respect of that expenditure, and in section 284(4) ‘the allowances on that account’ and ‘the allowances’ where it occurs before ‘exceed’ shall each be construed as not including a reference to any allowance made under subsection (1)(b) to the person by whom the relevant trade is carried on.
Allowances in respect of certain buildings.
380U.— Where a person carrying on a relevant trade incurs expenditure (in this section referred to as ‘qualifying expenditure’) on a new installation which includes capital expenditure on the construction of a new building or structure which is to be an industrial building or structure to be occupied for the purposes of that trade, then the following provisions shall apply:
(a) section 271 shall apply as if—
(i) in subsection (1) of that section the definition of ‘industrial development agency’ were deleted,
(ii) in subsection (2)(a)(i) of that section ‘to which subsection (3) applies’ were deleted,
(iii) subsection (3) of that section were deleted,
(iv) the following subsection were substituted for subsection (4) of that section:
‘(4) An industrial building allowance shall be of an amount equal to 100 per cent of the capital expenditure mentioned in subsection (2).’,
and
(v) in subsection (5) of that section ‘to which subsection (3)(c) applies’ were deleted,
and
(b) there shall be made to that person for the chargeable period related to the expenditure an allowance equal to 50 per cent of the qualifying expenditure in relation to that building or structure, and such allowance shall be made in taxing the relevant trade.
Improvement.
380V.— (1) A new installation is an improved installation where its capacity is greater or it has improved efficiency or productivity beyond normal modernisation or upgrading than the old installation which it replaced.
(2) Where expenditure incurred on the provision of an improved installation includes expenditure on new machinery or new plant or on the construction of a new building or structure which is to be an industrial building or structure to be occupied for the purposes of that trade, then the amount of that expenditure qualifying for relief under section 380T(1)(b) or 380U(1)(b) shall be the expenditure on the new machinery or the new plant or on the construction of a new building or structure, as the case may be, reduced by an amount representing improvement and the amount of expenditure representing improvement shall be such proportion of the expenditure in relation to the new machinery or new plant or in relation to the construction of a new building or structure, as the case may be, as appears to the inspector (or on appeal, the Appeal Commissioners) to be just and reasonable as representing costs relating to providing increased capacity or improved efficiency or productivity.
Supplementary provisions.
380W.— (1) Where an allowance under section 380T(1)(b) or 380U(1)(b) has been made to any person in respect of expenditure incurred on the provision of machinery or plant or on the construction of a building or structure and the machinery or plant or building or structure is sold by that person without the machinery or plant or building or structure having been used by that person for the purposes of a relevant trade or before the expiration of the period of 2 years from the day on which the machinery or plant or, as the case may be, the building or structure, began to be so used, then the allowance under those sections shall be withdrawn and all such additional assessments and adjustments of assessments shall be made as may be necessary for or in consequence of the withdrawal of the allowance.
(2) For the purposes of this Part, capital expenditure does not include any expenditure which is allowed to be deducted in computing for the purposes of tax the profits or gains of a trade carried on by the person incurring the expenditure.
(3) Where relief is given by any provision of this Part in relation to relocation expenditure, then relief shall not be given in respect of that expenditure under any other provision of the Taxes Acts.
(4) Chapter 4 of Part 9 shall apply as if this Part were contained in that Part.
Restrictions on relief — non-application of relief in certain cases.
380X.— Notwithstanding any other provision of this Part, no allowances under sections 380R, 380S, 380T and 380U shall be made in relation to expenditure—
(a) where any part of such expenditure has been or is to be met, directly or indirectly, by grant assistance or any other assistance which is granted by or through the State, any board established by statute, any public or local authority or any other agency of the State,
(b) unless the potential allowances in relation to that expenditure comply with—
(i) the requirements of the Guidelines on National Regional Aid for 2007-2013 prepared by the Commission of the European Communities and issued on 4 March 2006 1 ,
(ii) the National Regional Aid Map for Ireland for the period 1 January 2007 to 31 December 2013 which was approved by the Commission of the European Communities on 24 October 2006 2 , and
(iii) the requirements of the Community Guidelines on State Aid for Environmental Protection prepared by the Commission of the European Communities and issued on 1 April 2008 3 ,
(c) where the person who is entitled to the allowances in relation to that expenditure is subject to an outstanding recovery order following a previous decision of the Commission of the European Communities declaring aid in favour of that person to be illegal and incompatible with the common market,
or
(d) where the person who is entitled to the allowances is a person in difficulty under the Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty 4 .”.
(2) Subsection (1) comes into operation on the making of an order to that effect by the Minister for Finance.
1OJ No. C54, 4 March 2006, p.13.
2OJ No. C292, 1 December 2006, p. 11.
3OJ No. C82, 1 April 2008, p. 1.
4OJ No. C288, 9 October 1999, p. 2, and OJ No. C244 of 1 October 2004, p. 2.
num: 22
paragraphs: — Section 268 of the Principal Act is amended—
(a) in subsection (12)(c) by inserting “, or part thereof,” after “potential capital allowances involved”, and
(b) by inserting the following after subsection (12):
“(12A) (a) Where the National Tourism Development Authority gives a certificate in writing to the person who has incurred the capital expenditure on the construction or refurbishment of the building or structure stating that the approval referred to in subsection (12)(c) has been received, the building or structure shall, for the purposes of this Part, be treated as an industrial building or structure from the date on which it was first used for the purposes of the trade of hotel-keeping, and tax shall be discharged or repaid accordingly in giving effect to the allowances to be made under this Part.
(b) Where the Commission of the European Communities has approved an amount—
(i) which is lower than the amount of capital expenditure actually incurred on the construction or refurbishment of the building or structure, then, for the purposes of this Part, that lower amount shall be substituted for the amount actually incurred, or
(ii) which is lower than the amount of the net price paid within the meaning of section 279, that section shall apply as if the reference to the net price paid in subsection (2)(b) were a reference to the lower amount so approved.”.
num: 23
paragraphs: — (1) Section 81 of the Principal Act is amended in subsection (2) by substituting “capital gains tax;” for “capital gains tax.” in paragraph (n), and by inserting the following after paragraph (n):
“(o) any sum paid or payable under any agreement or understanding whereby a person is obliged to make a payment to a connected person resident in any territory outside the State for an adjustment made, or to be made, to the profits of the connected person for which relief may be afforded under the terms of an arrangement entered into by virtue of subsection (1) or (1B) of section 826, or for a similar adjustment made to the profits of a connected person resident in any other territory.”.
(2) (a) Subsection (1) applies in respect of any sum paid or payable—
(i) in an accounting period ending on or after 20 November 2008, or
(ii) in a basis period for a year of assessment where that basis period ends on or after 20 November 2008.
(b) For the purposes of this subsection “basis period” means the period on the profits or gains of which income tax for the year of assessment is to be finally computed under the Income Tax Acts.
num: 24
paragraphs: — (1) Section 81B of the Principal Act is amended—
(a) in subsection (1) by inserting the following before the definition of “ Reinsurance Regulations ”:
“ ‘ credit insurance risks ’ means risks included in class 14 of Section A of the Annex to the First Council Directive 73/239/EEC of 24 July 1973 1 ;
‘ Principal Regulations ’ means the European Communities (Non-Life Insurance) Regulations 1976 ( S.I. No. 115 of 1976 ) as amended from time to time;”,
(b) by inserting the following after subsection (1):
“(1A) This section applies to—
(a) an insurance company whose business has at any time been, or included, business in respect of which it was required, by virtue of Regulation 24 of the Reinsurance Regulations, to establish and maintain an equalisation reserve, or
(b) an insurance company which is underwriting credit insurance risks and which is required by Article 14(8) of the Principal Regulations to set up an equalisation reserve.”,
(c) by substituting the following for subsection (2):
num: 25
paragraphs: — (1) Section 198 of the Principal Act is amended in subsection (1)(c)—
(a) in subparagraph (iii) by inserting “, an interest payment to which section 246A applies” after “to which section 64(2) applies” and by deleting “and” where it last occurs,
(b) in subparagraph (iv), by substituting “assets of the qualifying company, and” for “assets of the qualifying company.”, and
(c) by inserting the following after subparagraph (iv):
“(v) a person shall not be chargeable to income tax in respect of discounts arising on securities issued by a relevant person (within the meaning of section 246) in the ordinary course of a trade or business carried on by that person if the first mentioned person is not a resident of the State and is regarded as being a resident of a relevant territory for the purposes of this subsection.”.
(2) This section applies as respects interest paid or discounts arising on or after 1 January 2009.
num: 26
paragraphs: — (1) The Principal Act is amended—
(a) in section 256(1) in the definition of “appropriate tax”—
(i) in paragraph (a) by substituting “23 per cent” for “20 per cent”,
(ii) by substituting the following for paragraph (b):
“(b) subject to paragraph (c), in the case of interest paid in respect of any other relevant deposit, at a rate determined by the formula—
(S + 3) per cent
where S is the standard rate per cent (within the meaning of section 4(1)) in force at the time of payment, and”,
and
(iii) in paragraph (c), by substituting “(S + 6) per cent” for “(S + 3) per cent”,
(b) in section 261(c)(i) by substituting the following for clause (II):
“(II) where the taxable income of that person includes relevant interest which comes within paragraph (b) of the definition of ‘appropriate tax’ in section 256(1) of the Principal Act, the part of taxable income, equal to that relevant interest, shall be chargeable to tax at the rate at which tax was deducted from that relevant interest.”,
(c) in section 261B by substituting the following for subsection (2):
“(2) Notwithstanding section 15, where the taxable income of that person includes specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate at which tax would have been deducted, from that interest, if a declaration under subsection (1A) or (1B) of section 256 had not been made.”,
(d) in section 267B—
(i) in subsection (2)(b) by substituting “23 per cent” for “20 per cent”, and
(ii) in subsection (3)(b) by substituting “23 per cent” for “20 per cent”,
and
(e) in section 267M, by substituting the following for paragraph (a) of subsection (2):
“(a) Notwithstanding section 15 and subject to paragraph (b), where the taxable income of that person includes specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate specified in paragraph (b) of the definition of ‘appropriate tax’ in subsection 256(1).”,
(2) (a) Paragraphs (a) and (d) of subsection (1) apply as respects any payment or crediting of relevant interest (within the meaning of Chapter 4 of Part 8 of the Principal Act) made on or after 1 January 2009.
(b) Paragraphs (b), (c) and (e) of subsection (1) apply for the year of assessment 2009 and subsequent years of assessment.
num: 27
paragraphs: — (1) The Principal Act is amended—
(a) in section 730F(1)—
(i) in paragraph (a) by substituting “(S + 6) per cent” for “(S + 3) per cent”, and
(ii) in paragraph (b) by substituting “(S + 26) per cent” for “(S + 23) per cent”,
(b) in Chapter 6 of Part 26—
(i) in section 730J(a)—
(I) by substituting the following for clause (I) of subparagraph (i):
“(I) where the payment is a relevant payment, at the rate determined by the formula—
(S + 3) per cent
where S is the standard rate per cent for the year of assessment in which the payment is made, and”,
(II) in subparagraph (i)(II)(A) by substituting “(S + 26) per cent” for “(S + 23) per cent”,
(III) in subparagraph (i)(II)(B) by substituting “(S + 6) per cent” for “(S + 3) per cent”, and
(IV) in subparagraph (ii)(I) by substituting “(H + 23) per cent” for “(H + 20) per cent”,
and
(ii) in section 730K(1)—
(I) in paragraph (a) by substituting “(S + 26) per cent” for “(S + 23) per cent”, and
(II) in paragraph (b) by substituting “(S + 6) per cent” for “(S + 3) per cent”,
(c) in Chapter 1A of Part 27—
(i) in the formula in section 739D(5A) by substituting“(S + 6)” for “(S + 3)”,
(ii) in section 739E—
(I) in subsection (1)—
(A) by substituting the following for paragraph (a):
“(a) subject to paragraph (ba), where the amount of the gain is provided by section 739D(2)(a), at a rate determined by the formula—
(S + 3) per cent
where S is the standard rate per cent for the year of assessment in which the gain arises,”,
(B) in paragraph (b) by substituting “(S + 6) per cent” for “(S + 3) per cent,”, and
(C) in paragraph (ba) by substituting “(S + 26) per cent” for “(S + 23) per cent,”,
and
(II) in subsection (1A) in the definition of “first tax” by substituting “section 739F or, as the case may be, in accordance with subsection (2A)(b)(iii) and section 739G(2A)” for “section 739F”,
and
(iii) in section 739G(2)(c) by substituting “at the rate determined in accordance with section 739E(1)(a),” for “at the standard rate,”,
and
(d) in Chapter 4 of Part 27—
(i) in section 747D—
(I) in paragraph (a)(i)(I)—
(A) by substituting “(S + 26) per cent” for “(S + 23) per cent,” in subclause (A), and
(B) by substituting the following for subclause (B):
“(B) in any other case, at the rate determined by the formula—
(S + 3) per cent
where S is the standard rate per cent for the year of assessment in which the relevant payment is made,”,
(II) in paragraph (a)(i)(II)(A) by substituting “(S + 26) per cent” for “(S + 23) per cent,”,
(III) in paragraph (a)(i)(II)(B) by substituting “(S + 6) per cent” for “(S + 3) per cent,”, and
(IV) in paragraph (a)(ii)(I) by substituting “(H + 23) per cent” for “(H + 20) per cent,”,
and
(ii) in section 747E(1)—
(I) in paragraph (b)(i) by substituting “(S + 26) per cent” for “(S + 23) per cent,”, and
(II) in paragraph (b)(ii) by substituting “(S + 6) per cent” for “(S + 3) per cent,”.
(2) (a) Paragraph (a) of subsection (1) applies and has effect as respects the happening of a chargeable event in relation to a life policy (within the meaning of Chapter 5 of Part 26) on or after 1 January 2009.
(b) Paragraph (b)(i) of subsection (1) applies and has effect as respects the receipt by any person of a payment in respect of a foreign life policy (within the meaning of Chapter 6 of Part 26) on or after 1 January 2009.
(c) Paragraph (b)(ii) of subsection (1) applies and has effect as respects the disposal in whole or in part of a foreign life policy (within the meaning of Chapter 6 of Part 26) on or after 1 January 2009.
(d) Paragraph (c) of subsection (1) applies and has effect as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1)) on or after 1 January 2009.
(e) Paragraph (d)(i) of subsection (1) applies and has effect as respects the receipt by any person of a payment in respect of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 1 January 2009.
(f) Paragraph (d)(ii) of subsection (1) applies and has effect as respects the disposal in whole or in part by a person of a material interest in an offshore fund (within the meaning of Chapter 4 of Part 27) on or after 1 January 2009.
num: 28
paragraphs: — (1) The Principal Act is amended in section 481—
(a) in subsection (1), in the definition of “relevant deduction”, by substituting “100 per cent” for “80 per cent”, and
(b) in subsection (7) by substituting “€50,000” for “€31,750”.
(2) This section comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.
num: 29
paragraphs: — (1) Section 503 of the Principal Act is amended by substituting the following for subsection (1):
“(1) A claim for the relief in respect of eligible shares issued by a company in any year of assessment shall be made—
(a) not earlier than—
(i) in the case of a relevant investment, the date on which the company commences to carry on the relevant trading operations, and
(ii) in any other case, the end of the period of 4 months mentioned in section 489(7)(a)(i)(II),
and
(b) not later than—
(i) 2 years after the end of that year of assessment or, if that period of 4 months mentioned in section 489(7)(a)(i)(II) ended after the end of that year, 2 years after the end of that 4 month period, whichever last occurs, or
(ii) 3 months after the date the statement referred to in subsection (3) is furnished, where such statement is furnished within the 3 months prior to the expiry of the time specified in subparagraph (i).”.
(2) Subsection (1) applies and has effect as on and from 1 January 2009.
num: 30
paragraphs: — (1) Section 768 of the Principal Act is amended—
(a) by substituting the following for subsection (3):
“(3) (a) Where a person acquires a trade or part of a trade and, together with the trade or the part of the trade, know-how used in the trade or part of the trade, then no amount shall be allowed to be deducted under this section in respect of expenditure incurred on the acquisition of the know-how.
(b) Subject to paragraph (c), where—
(i) a person acquires a trade or part of a trade, and
(ii) a person connected (within the meaning of section 10) with the person acquires know-how used in the trade or the part of the trade,
then—
(I) the amount of expenditure incurred on the know-how by the person referred to in subparagraph (ii) shall be allowed as a deduction against profits of the trade, carried on by that person, in which the know-how is used (in this subsection referred to as a ‘relevant trade’) but not against any other income or profits of whatever description,
(II) no amount of any royalty or other sum paid by the person referred to in subparagraph (i), or by any person connected (within the meaning of section 10) with that person, for the know-how acquired by the person referred to in subparagraph (ii) shall be allowed to be deducted in computing the profits of any description, or to be treated as a charge on income, of the person making such payment, and
(III) no amount shall be allowed to be deducted under this section where, at any time, the trade or part of the trade referred to in subparagraph (i) is transferred to the person referred to in subparagraph (ii).
(c) Where as respects any chargeable period of a person carrying on a relevant trade, the amount by which a deduction available to be made under paragraph (b)(I) exceeds the profits of the relevant trade but for that deduction, the excess shall be carried forward and treated as an amount deductible under paragraph (b)(I) for succeeding chargeable periods and (so long as the person continues to carry on the trade) its profits from the trade in any succeeding chargeable period shall then be treated as reduced by the amount of the excess, or by so much of that excess as cannot be relieved against profits of the trade of an earlier chargeable period.”,
and
(b) by inserting the following after subsection (5):
num: 31
paragraphs: — (1) The Principal Act is amended by inserting the following after section 486B—
“486C.— (1) (a) In this section—
‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;
‘ EEA state ’ means a State, other than the State, which is a Contracting Party to the EEA Agreement;
‘ excepted trade ’ has the same meaning as in section 21A;
‘ net chargeable gains ’ means chargeable gains less allowable losses;
‘ new company ’ means a company incorporated in the State or in an EEA State other than the State on or after 14 October 2008;
‘qualifying assets’, in relation to a qualifying trade, means relevant assets of the qualifying trade which are disposed of in the relevant period in relation to that trade;
‘qualifying trade’ has the meaning assigned to it in subsection (2);
‘relevant asset’, in relation to a qualifying trade means, an asset (including goodwill but not including shares or securities or other assets held as investments) which is, or is an interest in, an asset used for the purposes of that trade other than an asset on the disposal of which no gain accruing would be a chargeable gain or an asset the consideration for the acquisition of which is determined by section 617 or section 631;
num: 32
paragraphs: — (1) Section 448 of the Principal Act is amended—
(a) by substituting the following for paragraph (b) of subsection (3):
“(b) then, deducting from the relevant sum—
(i) the amount of any charges on income paid for the purposes of the sale of goods in the relevant accounting period,
(ii) the amount of any loss from the sale of goods incurred by the company in the relevant accounting period, and
(iii) the amount of any excess of charges on income paid for the purpose of the sale of goods or the amount of any loss from the sale of goods, incurred by a surrendering company and allowed under section 420A,
allowed against income of the trade in the relevant accounting period.”,
and
(b) by substituting the following for paragraph (a) of subsection (5B) (inserted by the Finance Act 2008 ):
“(a) by any amounts in respect of—
(i) any charges on income paid for the purposes of the sale of goods in the relevant accounting period,
(ii) any loss from the sale of goods incurred by the company in the relevant accounting period, and
(iii) any excess of charges on income paid for the purpose of the sale of goods or the amount of any loss from the sale of goods, incurred by a surrendering company and allowed under section 420A,
allowed against income of the trade in the relevant accounting period, and”.
(2) This section has effect for accounting periods ending on or after 20 November 2008.
num: 33
paragraphs: — The Principal Act is amended—
(a) in the definition of “ relevant territory ” in section 21B(1)(a)—
(i) in subparagraph (i) by deleting “or” and in subparagraph (ii) by substituting “have been made, or” for “have been made;”, and
(ii) by inserting the following after subparagraph (ii):
“(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”,
(b) in the definition of “ relevant territory” in section 153(1)—
(i) in paragraph (a) by deleting “or” and in paragraph (b) by substituting “have been made, or” for “have been made;”, and
(ii) by inserting the following after paragraph (b):
“(c) not being a territory referred to in paragraph (a) or (b), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”,
(c) in the definition of “ relevant territory ” in section 172A(1)(a)—
(i) in subparagraph (i) by deleting “or” and in subparagraph (ii) by substituting “have been made, or” for “have been made;”, and
(ii) by inserting the following after subparagraph (ii):
“(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”,
(d) in the definition of “ relevant territory ” in section 198(1)(a)—
(i) in subparagraph (i) by deleting “or” and in subparagraph (ii) by substituting “have been made, or” for “have been made;”, and
(ii) by inserting the following after subparagraph (ii):
“(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”,
(e) in the definition of “ relevant territory ” in section 246(1)—
(i) in paragraph (a) by deleting “or” and in paragraph (b) by substituting “have been made, or” for “have been made;”, and
(ii) by inserting the following after paragraph (b):
“(c) not being a territory referred to in paragraph (a) or (b), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”,
(f) in section 452—
(i) by inserting in subsection (1)(a) the following after “section 826(1)” in the definition of “ arrangements ”:
“or arrangements made with the government of a territory which on completion of the procedures set out in section 826(1) will have the force of law”,
and
(ii) by inserting in subsection (1)(b)(i) “and have effect in accordance with the provisions of those arrangements” after “have been made”,
(g) in the definition of “ relevant territory ” in section 626B(1)(a)—
(i) in subparagraph (i) by deleting “or” and in subparagraph (ii) by substituting “have been made, or” for “have been made;”, and
(ii) by inserting the following after subparagraph (ii):
“(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”,
and
num: 34
paragraphs: — (1) The Principal Act is amended in section 766—
(a) in subsection (1)(a) by substituting the following for the definition of “ threshold amount ”:
“ ‘threshold amount’, in relation to a relevant period of a group of companies, means the aggregate of the amounts of expenditure on research and development incurred in the period of one year ending on a date in the year 2003, which corresponds with the date on which the relevant period ends by all companies which are members of the group in the threshold period, in relation to the relevant period concerned: but expenditure incurred by a company which is a member of the group for a part of the threshold period shall only be included in the threshold amount if the expenditure is incurred at a time when the company is a member of the group;”,
(b) in subsection (2) by substituting “25 per cent” for “20 per cent”,
(c) in subsection (4) by deleting “Where” and substituting “Subject to subsections (4A) and (4B), where”,
(d) by inserting the following after subsection (4):
“(4A) (a) Where as respects any accounting period of a company the amount by which the company is entitled to reduce corporation tax of the accounting period exceeds the corporation tax of the company for the accounting period, the company may make a claim requiring the corporation tax of the preceding accounting period ending within the time specified in paragraph (b) to be reduced by the amount of the excess.
(b) The time referred to in paragraph (a) shall be a time immediately preceding the accounting period first mentioned in that paragraph, equal in length to that accounting period, but the amount of the reduction which may be made under paragraph (a) in the corporation tax of an accounting period falling partly before that time shall not exceed the corporation tax referable to the part of those profits proportionate to the part of the period falling within that time.
(4B) (a) Where a claim under subsection (4A)(a) has been made, and the amount of the excess referred to in subsection (4A)(a) exceeds the corporation tax of the preceding accounting periods ending within the time specified in subsection (4A)(b) or where no corporation tax arises for those preceding accounting periods, the company may make a claim to have any excess remaining paid to the company by the Revenue Commissioners.
(b) Subject to section 766B, on receipt of a claim the Revenue Commissioners shall pay any excess remaining to the company, in 3 instalments—
(i) the first instalment shall be paid by the Revenue Commissioners not earlier than the date provided for in paragraph (b) of the definition of ‘specified return date for the chargeable period’ as defined in section 950(1), for the accounting period in which the expenditure on research and development was incurred and shall equal 33 per cent of the excess remaining,
(ii) in respect of the second instalment—
(I) the excess remaining, as reduced by the first instalment under subparagraph (i), shall be first treated as an amount by which the corporation tax of the accounting period next succeeding the accounting period in which the expenditure giving rise to the claim under this subsection was incurred, is reduced in accordance with subsection (4), and
(II) the second instalment shall be paid by the Revenue Commissioners not earlier than 12 months immediately following the date referred to in subparagraph (i) and shall equal 50 per cent of the amount by which the excess remaining is reduced by the aggregate of the first instalment under subparagraph (i) and the amount treated as reducing the corporation tax of an accounting period under clause (I),
and
(iii) in respect of the last instalment—
(I) the excess remaining, as reduced by the first and second instalments and by the amount treated as reducing the corporation tax of an accounting period under clause (I) of subparagraph (ii), shall be first treated as an amount by which the corporation tax of the accounting period next succeeding the accounting period referred to in clause (I) of subparagraph (ii) is reduced in accordance with subsection (4), and
(II) the last instalment shall be paid by the Revenue Commissioners not earlier than 24 months immediately following the date referred to in subparagraph (i) and shall equal the amount by which the excess remaining is reduced by the first and second instalments and by the total of the amounts by which the corporation tax of an accounting period is reduced under clause (I) of subparagraph (ii) and under clause (I) of this subparagraph.”,
(e) by substituting for subsection (5):
“(5) Any claim under this section shall be made within 12 months from the end of the accounting period in which the expenditure on research and development, giving rise to the claim, is incurred.”,
and
(f) by inserting the following after subsection (7):
“(7A) Any amount payable by virtue of subsection (4B) shall not be income of the company or another company for any tax purpose.
(7B) Any amount payable by the Revenue Commissioners to the company or another company by virtue of subsection (4B) shall be deemed to be an overpayment of corporation tax, for the purposes only of section 1006A (2).”.
(2) (a) Paragraph (e) of subsection (1) applies to claims under section 766 of the Principal Act made on or after 1 January 2009.
(b) Except where otherwise expressly provided, this section applies to expenditure incurred in accounting periods commencing on or after 1 January 2009.
num: 35
paragraphs: — (1) The Principal Act is amended in section 766A—
(a) in subsection (1)(a)—
(i) by inserting the following definition before the definition of “ refurbishment ” :
“ ‘ qualifying building ’ means a building or structure, which is to be used for the purpose of the carrying on by the company of research and development activities in a relevant Member State, where, for the specified relevant period in relation to that building or structure, the proportion of use of the building or structure attributable to the research and development activities carried on by the company, as calculated in accordance with subsection (6), is not less than 35 per cent;”,
(ii) in the definition of “ relevant expenditure ” by substituting “qualifying building” for “building or structure which is to be used wholly and exclusively for the purpose of the carrying on by the company of research and development activities in a relevant Member State”, and
(iii) by inserting the following definitions after the definition of “relevant expenditure”:
“ ‘ specified relevant expenditure ’ means the same proportion of relevant expenditure as the research and development activities carried on in the qualifying building by the company for the specified relevant period bears to the total of all activities carried on by the company in that building for that period;
‘ specified relevant period ’ means—
(i) in the case of the construction of a qualifying building, the period of 4 years, commencing with the date on which the building or structure is first brought into use for the purposes of a trade,
(ii) in the case of the refurbishment of a qualifying building, the period of 4 years, commencing with the date on which the refurbishment is completed or, such earlier period of 4 years, as the company may elect, beginning not earlier than the date on which the refurbishment commences;”,
(b) by substituting for subsection (2):
“(2) Where in an accounting period a qualified company incurs relevant expenditure, the corporation tax of the company for that accounting period shall be reduced by an amount equal to 25 per cent of the specified relevant expenditure.”,
(c) by substituting for subsection (3):
“(3) Where—
(a) in an accounting period a company incurs relevant expenditure on a building or structure,
(b) in relation to that expenditure the corporation tax of the company or another company is reduced under subsection (2) or (4A), or a payment has been made to the company or another company by the Revenue Commissioners by virtue of subsection (4B), and
(c) at any time in the period of 10 years commencing at the beginning of that accounting period the building or structure is sold or ceases to be used by the company for the purpose of research and development activities or for the purpose of the same trade that was carried on by the company at the beginning of the specified relevant period, in connection with which the research and development activities were carried on,
then the company—
(i) and in relation to that expenditure, another company, shall not be entitled to reduce corporation tax under subsection (2) for any accounting period ending after the time specified in paragraph (c), and
num: 36
paragraphs: — The Principal Act is amended in Part 29 by inserting the following after section 766A:
“Limitation of tax credits to be paid under section 766 or 766A.
766B.— (1) In this section ‘ payroll liabilities ’ means—
(a) the amount of income tax which the company is required, by or under Chapter 4 of Part 42, to remit to the Collector-General for that period in respect of emoluments, as defined in section 983, paid to, or on account of, all employees and directors,
(b) the amount of Pay Related Social Insurance Contributions in respect of the reckonable earnings and reckonable emoluments of all directors and employees which the company is required to remit to the Collector-General for that period by or under the Social Welfare Acts, and
(c) any other levies the company is required to remit to the Collector-General, for that period, in respect of directors and employees.
(2) For the purpose of subsection (1), Pay Related Social Insurance includes Pay Related Social Insurance Contributions payable under the Social Welfare Acts, Health Contributions payable under the Health Contributions Act 1979 , and levies payable under the National Training Fund Act 2000 .
(3) Where in respect of expenditure in an accounting period a company makes a claim under section 766(4B) or 766A(4B), then the aggregate amount payable by the Revenue Commissioners to that company under those sections shall not exceed the greater of—
(a) the aggregate of the corporation tax paid by the company in respect of accounting periods ending in the 10 years immediately preceding the time specified in subsection (4A)(b) of section 766, in relation to the accounting period in which the expenditure was incurred, as reduced by any amounts payable to the company in respect of claims made under section 766(4B) or 766A(4B), as the case may be, in respect of expenditure in a previous accounting period, or
(b) the aggregate of the amounts payable by the company in respect of payroll liabilities for the accounting period in which the expenditure was incurred.”.
num: 37
paragraphs: — (1) The Principal Act is amended—
(a) in section 285A by inserting the following after subsection (8):
“(8A) (a) Notwithstanding Part 11C, where an allowance is increased under this section in respect of expenditure incurred in a chargeable period on the provision of any vehicle (being a vehicle to which subsection (1) of section 380K relates) in relation to the class of technology described in column (1) of the Table as ‘Electric and Alternative Fuel Vehicles’, then subsection (2) shall apply as if the reference in paragraph (ad) of section 284(2) to the actual cost were a reference to the lower of the actual cost of the vehicle or the specified amount referred to in section 380K(4).
(b) Subsection (2) shall not apply where an allowance in respect of expenditure incurred on the provision of a vehicle referred to in paragraph (a) is made under section 284(2) as applied by section 380L.”,
(b) in section 380K(1) by inserting “, but this Part shall not apply where an allowance for a vehicle is increased under section 285A” after “so used”, and
num: 38
paragraphs: — (1) Section 958 of the Principal Act is amended—
(a) in subsection (1)—
(i) in paragraph (a)—
(I) by inserting the following definition after “ corres ponding corporation tax for the preceding chargeable period ”:
“ ‘ corresponding income tax for the preceding chargeable period ’, in relation to a chargeable period which is an accounting period of a company, means an amount determined by the formula—
I x C
P
where—
I is the income tax payable under section 239 or 241 by the chargeable person for the preceding chargeable period,
C is the number of days in the chargeable period, and
P is the number of days in the preceding chargeable period;”,
(II) by substituting the following for the definition of “ tax payable for the initial period ”:
“ ‘ tax payable for the initial period ’, in relation to a chargeable period which is—
(I) a year of assessment for capital gains tax (being the years of assessment 2003 to 2008 inclusive), means the tax which would be payable by the chargeable person if the year of assessment ended on 30 September in that year instead of 31 December in that year, or
(II) a year of assessment for capital gains tax (being the year of assessment 2009 or any subsequent year of assessment), means the tax which would be payable by the chargeable person if the year of assessment ended on 30 November in that year instead of 31 December in that year;”,
and
(III) by inserting the following definition after “ pre- preceding chargeable period ”:
“ ‘ relevant accounting period ’ shall be construed in accordance with paragraph (c);”, and
(ii) by inserting the following after paragraph (b):
“(c) (i) Subject to subparagraph (ii), a relevant accounting period shall mean an accounting period of a company, other than a small company, which commences on or after 14 October 2008.
(ii) An accounting period shall not be a relevant accounting period where, but for this subparagraph, the final instalment of preliminary tax would, by reason of the dates on which the accounting period commences and ends, be due and payable in accordance with subsection (2BA)(c) on or before the date on which the initial instalment would be due and payable in accordance with subsection (2BA)(b).”,
(b) in subsection (2B)—
(i) in paragraph (a), by substituting “Subject to subsection (2BA), preliminary tax” for “Preliminary tax”, and
(ii) in paragraph (c), by substituting “subsections (4C) and (4CA)” for “subsections (4C) and (4E)”,
(c) by inserting the following after subsection (2B):
“(2BA) (a) Preliminary tax appropriate to a chargeable period which is a relevant accounting period shall be due and payable in 2 instalments.
(b) The first of the 2 instalments referred to in paragraph (a) (in this section referred to as the ‘initial instalment’) shall be due and payable within a period of 6 months from the commencement of the accounting period, but in any event the initial instalment shall be due and payable not later than day 21 of the month in which that period of 6 months ends.
(c) The second of the 2 instalments referred to in paragraph (a) (in this section referred to as the ‘final instalment’) shall be due and payable not later than the day which is 31 days before the day on which the accounting period ends, but where that day is later than day 21 of the month in which the first-mentioned day occurs, the final instalment shall be due and payable not later than day 21 of that month.”,
(d) in subsection (2C)—
(i) in paragraph (b), by inserting “Subject to paragraph (c), references” for “References”, and
(ii) by inserting the following after paragraph (b):
“(c) References in this Part to the due date for the payment of the initial instalment, or the final instalment, of preliminary tax shall, in the case where that tax is due for a chargeable period which is a relevant accounting period, be construed in accordance with subsection (2BA).”,
(e) in subsection (3)(a)—
(i) by substituting “Subject to subsections (3A), (4), (4B), (4C), (4CA), (4D), (4E), (4F) and (4G)” for “Subject to subsections (3A), (4), (4B), (4C), (4D) and (4E)”, and
(ii) in subparagraph (v) by substituting the following for clause (I):
“(I) as respects tax payable for the initial period—
(A) where the initial period falls in the years of assessment 2003 to 2008 inclusive, on or before 31 October in the year of assessment, and
(B) where the initial period falls in the year of assessment 2009 or any subsequent year of assessment, on or before 15 December in that year of assessment, and”,
(f) in subsection (4C)—
(i) by substituting “Subject to subsections (2B)(c), (4CA), (4E), (4F), (4G) and (11)” for “Subject to subsections (2B)(c), (4E) and (11)”, and
(ii) in paragraph (b)(i), by substituting the following for clause (II):
“(II) the sum of the corresponding corporation tax for the preceding chargeable period and the corresponding income tax for the preceding chargeable period,”,
(g) by inserting the following after subsection (4C):
“(4CA) (a) Subject to subsections (2B)(c), (4E), (4F), (4G) and (11), where but for this subsection tax payable by a chargeable person for a chargeable period which is a relevant accounting period would be due and payable in accordance with subsection (3), and—
(i) the chargeable person has defaulted in the payment of the initial instalment or final instalment of preliminary tax for the chargeable period,
(ii) the initial instalment of preliminary tax paid by the chargeable person for the chargeable period is less than, or less than the lower of—
(I) 45 per cent of the tax payable by the chargeable person for the chargeable period, or
(II) 50 per cent of the sum of the corresponding corporation tax for the preceding chargeable period and the corresponding income tax for the preceding chargeable period,
(iii) where the chargeable period commenced on the company coming within the charge to corporation tax, the initial instalment of preliminary tax paid by the chargeable person for the chargeable period is less than 45 per cent of the tax payable by the chargeable person for the chargeable period,
(iv) the aggregate of the initial instalment and the final instalment of preliminary tax paid by the chargeable person for the chargeable period is less than 90 per cent of the tax payable by the chargeable person for the chargeable period, or
(v) the initial instalment or the final instalment of preliminary tax payable by the chargeable person for the chargeable period was not paid by the date on which it was due and payable,
then the tax payable by the chargeable person for the chargeable period shall be deemed to have been due and payable in accordance with paragraph (b).
(b) (i) Tax due and payable in accordance with this paragraph by a chargeable person for a chargeable period which is a relevant accounting period shall be due and payable in 2 instalments.
(ii) The first of the 2 instalments referred to in subparagraph (i) (in this paragraph and in paragraphs (c) and (d) referred to as the ‘initial relevant instalment’) shall be due and payable not later than the day on which the initial instalment of preliminary tax is due and payable in accordance with subsection (2BA).
(iii) The second of the 2 instalments referred to in subparagraph (i) (in this paragraph and in paragraph (d) referred to as the ‘final relevant instalment’) shall be due and payable not later than the day on which the final instalment of preliminary tax is due and payable in accordance with subsection (2BA).
(c) The amount of the initial relevant instalment shall be 45 per cent of the tax payable by the chargeable person for the chargeable period.
(d) The amount of the final relevant instalment shall be an amount equal to the excess of the tax payable by the chargeable person for the chargeable period over the amount of the initial relevant instalment.”,
(h) in subsection (4E), by substituting “Subject to subsections (4F) and (4G), where” for “Where”,
(i) by inserting the following after subsection (4E):
“(4F) Where as respects a chargeable period which is a relevant accounting period—
(a) the initial instalment of preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2BA) is less than 45 per cent of the tax payable by the chargeable person for the chargeable period,
(b) the initial instalment of preliminary tax so paid by the chargeable person for the chargeable period is not less than 45 per cent of the amount which would be payable by the chargeable person for the chargeable period if no amount were included in the chargeable person’s profits for the chargeable period—
(i) in respect of chargeable gains on the disposal by the person of assets in the part of the chargeable period which is after the date by which the initial instalment of preliminary tax for the chargeable period is payable in accordance with subsection (2BA), or
(ii) in the case of a relevant company, in respect of profits or gains or losses accruing, and not realised, in the chargeable period on financial assets or financial liabilities as are attributable to changes in value of those assets or liabilities in the part of the chargeable period which is after the end of the month immediately preceding the month in which the initial instalment of preliminary tax for the chargeable period is payable in accordance with subsection (2BA),
and
(c) the aggregate of the initial instalment and the final instalment of preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2BA) is not less than 90 per cent of that amount of tax which would be payable by the chargeable person for the chargeable period if computed in accordance with subsection (4G)(b),
then the initial instalment of preliminary tax paid by the chargeable person for the chargeable period shall be treated for the purposes of subsection (4CA) as having been paid by the date on which it is due and payable.
(4G) Where as respects a chargeable period which is a relevant accounting period—
(a) the aggregate of the initial instalment and the final instalment of preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2BA) is less than 90 per cent of the tax payable by the chargeable person for the chargeable period,
(b) the aggregate of the initial instalment and the final instalment of preliminary tax so paid by the chargeable person for the chargeable period is not less than 90 per cent of the amount which would be payable by the chargeable person for the chargeable period if no amount were included in the chargeable person’s profits for the chargeable period—
(i) in respect of chargeable gains on the disposal by the person of assets in the part of the chargeable period which is after the date by which, or
(ii) in the case of a relevant company, in respect of profits or gains or losses accruing, and not realised, in the chargeable period on financial assets or financial liabilities as are attributable to changes in value of those assets or liabilities in the part of the chargeable period which is after the end of the month immediately preceding the month in which,
the final instalment of preliminary tax for the chargeable period is payable in accordance with subsection (2BA), and
(c) the chargeable person makes a further payment of preliminary tax for the chargeable period within one month after the end of the chargeable period and the aggregate of that payment and the initial instalment and final instalment of preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2BA) is not less than 90 per cent of the tax payable by the chargeable person for the chargeable period,
then the final instalment of preliminary tax paid by the chargeable person for the chargeable period shall be treated for the purposes of subsection (4CA) as having been paid by the date on which it is due and payable.”,
and
(j) by substituting the following for subsection (11):
“(11) (a) In this subsection—
‘ initial balance ’ means the amount represented by the formula—
A — B
where—
A is the amount of the initial instalment of preliminary tax paid by the surrendering company for the relevant period in accordance with subsection (2BA), and
B is—
(i) where the relevant period commenced on the surrendering company coming within the charge to corporation tax—
(I) 45 per cent of the tax payable by the surrendering company for the relevant period, or
(II) where subsection (2B)(c) applies in relation to that period, a nil amount,
or,
(ii) in any other case, the lower of—
(I) 45 per cent of the tax payable by the surrendering company for the relevant period, or
(II) 50 per cent of the sum of the corresponding corporation tax for the preceding chargeable period and the corresponding income tax for the preceding chargeable period, which is payable by the surrendering company;
‘ final balance ’ means the amount represented by the formula—
C — D
where—
C is the amount of preliminary tax paid by the surrendering company for the relevant period in accordance with subsection (2B) or subsection (2BA), as the case may be, and
D is 90 per cent of the tax payable by the surrendering company for the relevant period, or, where subsection (2B)(c) applies in relation to that period, a nil amount;
‘ relevant initial balance ’ means that part of an initial balance that is specified in a notice given in accordance with paragraph (c);
‘ relevant final balance ’ means that part of a final balance that is specified in a notice given in accordance with paragraph (c).
(b) This subsection applies where—
(i) a chargeable person being a company (in this subsection referred to as the ‘ surren dering company ’) which is a member of a group pays—
(I) an initial instalment of preliminary tax for a chargeable period (in this subsection referred to as the ‘ relevant period ’) in accordance with subsection (2BA), being an amount which exceeds, or exceeds the lower of—
(A) 45 per cent of the tax payable by the surrendering company for the relevant period, or
(B) 50 per cent of the sum of the corresponding corporation tax for the preceding chargeable period and the corresponding income tax for the preceding chargeable period, which is payable by the surrendering company,
(II) an initial instalment of preliminary tax for a relevant period which commenced on the surrendering company coming within the charge to corporation tax, being an amount which exceeds 45 per cent of the tax payable by that company for the relevant period,
(III) an amount of preliminary tax for a relevant period in accordance with subsection (2B) or subsection (2BA) as the case may be, being an amount which exceeds 90 per cent of the tax payable by the surrendering company for the relevant period, or
(IV) any amount of preliminary tax for a relevant period in respect of which subsection (2B)(c) applies,
(ii) another chargeable person being a company (in this subsection referred to as the ‘ claimant company ’) which is a member of the group pays—
(I) an initial instalment of preliminary tax for a chargeable period in accordance with subsection (2BA), being an amount which is less than, or less than the lower of—
(A) 45 per cent of the tax payable by the claimant company for the chargeable period, or
(B) 50 per cent of the sum of the corresponding corporation tax for the preceding chargeable period and the corresponding income tax for the preceding chargeable period, which is payable by the claimant company,
(II) an initial instalment of preliminary tax for a chargeable period which commenced on the claimant company coming within the charge to corporation tax, being an amount which is less than 45 per cent of the tax payable by that company for the relevant period, or
(III) an amount of preliminary tax for a chargeable period in accordance with subsection (2BA), being an amount which is less than 90 per cent of the tax payable by the claimant company for the chargeable period,
(iii) the chargeable period in subparagraph (ii) coincides with the relevant period, and
(iv) the claimant company is not a small company in relation to the relevant period.
(c) Where this subsection applies the 2 companies may, at any time on or before the specified return date for the chargeable period of the surrendering company, jointly give notice to the Collector-General, in such form as the Revenue Commissioners may require, that—
(i) paragraph (d)(i) is to have effect in relation to the relevant initial balance, or,
(ii) paragraph (d)(ii) is to have effect in relation to the relevant final balance,
which is specified in the notice.
(d) (i) Where this paragraph has effect in relation to any relevant initial balance—
(I) an additional amount of preliminary tax equal to the relevant initial balance shall be deemed for the purposes of subsection (4CA)(a)(ii) to have been paid by the claimant company on the due date for the payment of the initial instalment of preliminary tax of that company for the relevant period if 100 per cent of the tax payable by the claimant company for the relevant period, disregarding this clause, is paid on or before the specified return date for the relevant period, and
(II) the surrendering company shall for the purposes of this subsection be treated as having surrendered the relevant initial balance to the claimant company and that relevant initial balance shall not be available for use by any other company under this subsection.
(ii) Where this paragraph has effect in relation to any relevant final balance—
(I) an additional amount of preliminary tax equal to the relevant final balance shall be deemed for the purposes of subsection (4CA)(a)(iv) to have been paid by the claimant company on the due date for the payment of the final instalment of preliminary tax of that company for the relevant period if 100 per cent of the tax payable by the claimant company for the relevant period, disregarding this clause, is paid on or before the specified return date for the relevant period, and
(II) the surrendering company shall for the purposes of this subsection be treated as having surrendered the relevant final balance to the claimant company and that relevant final balance shall not be available for use by any other company under this subsection.
(e) A payment for a relevant initial balance or for a relevant final balance—
(i) shall not be taken into account in computing profits or losses of either company for corporation tax purposes, and
(ii) shall not be regarded as a distribution or a charge on income for any of the purposes of the Corporation Tax Acts,
and, in this paragraph, ‘ payment for a relevant initial balance or for a relevant final balance ’ means a payment made by the claimant company to the surrendering company in pursuance of an agreement between them as respects an amount surrendered in accordance with this subsection, being a payment not exceeding that amount.
(f) (i) This subsection shall not affect the liability to pay corporation tax of any company to which the subsection relates.
(ii) Where this subsection applies, the amount on which, but for this subsection, the claimant company is liable to pay interest in accordance with section 1080 shall be reduced by—
(I) any relevant initial balance deemed to have been paid by that company in accordance with paragraph (d)(i)(I), or
(II) any relevant final balance deemed to have been paid by that company in accordance with paragraph (d)(ii)(I).
(g) For the purposes of this subsection, 2 companies are members of the same group if and only if they would be such members for the purposes of section 411.”.
(2) (a) Subsection (1), apart from paragraphs (a)(i)(II) and (e)(ii), has effect for accounting periods commencing on or after 14 October 2008.
(b) Paragraphs (a)(i)(II) and (e)(ii) of subsection (1) apply to disposals made in the year of assessment 2009 and subsequent years of assessment.
num: 39
paragraphs: — (1) Section 239 of the Principal Act is amended—
(a) in subsection (4) by inserting “, but in any event not later than day 21 of the month in which that period of 9 months ends” after “the end of that period”, and
(b) in subsection (5) by substituting “corporation tax” for “preliminary tax” and by inserting “in accordance with section 958 and” after “payable by the company”.
(2) This section has effect for accounting periods commencing on or after 14 October 2008.
num: 40
paragraphs: — (1) Schedule 4 to the Principal Act is amended—
(a) by inserting the following after paragraph 53:
“53A. The Institute of Public Health in Ireland Limited.”,
and
(b) by inserting the following after paragraph 84:
“84A. The Private Residential Tenancies Board.”,
(2) (a) Subsection (1)(a) is deemed to have come into force and have taken effect on and from 1 October 2002.
(b) Subsection (1)(b) is deemed to have come into force and have taken effect on and from 1 September 2004.
num: 41
paragraphs: — The Principal Act is hereby amended by inserting the following section after section 541B:
“541C.— (1) In this section—
‘ carried interest ’, in relation to a relevant investment, means the share of profits (where the share ratio was agreed at the outset of the relevant investment) referred to in paragraph (b) of the definition of ‘total profits of an investment’ that is received by a company or partnership in respect of the management of the relevant investment;
‘ carried interest to which this section applies ’, in relation to a relevant investment, means an amount of carried interest which is not greater than 20 per cent of the total profits from the relevant investment;
‘ innovation activities ’ means development of new technological, telecommunication, scientific or business processes;
‘ investor ’, in relation to a relevant investment, means a person other than a person entitled to carried interest or a person connected with that person;
‘ relevant investment ’ means an investment, which remains in place for at least 6 years, in unquoted shares or securities of a private trading company and that company is—
(a) carrying on a business set up and commenced on or after 1 January 2009, other than a business—
(i) which was previously carried on by another person and to which the company has succeeded,
(ii) the activities of which were previously carried on as part of another person’s business, or
(iii) which is an excepted trade within the meaning of section 21A,
and
(b) carrying on a business of research, development or innovation activities;
‘ research and development activities ’ has the same meaning as in section 766(1);
‘ total profits of an investment ’, in relation to a relevant investment, means the sum of—
(a) the profits which are attributable to investors in the relevant investment by reference to an agreed initial rate of return, and
(b) the balance of the profits of the relevant investment over and above those calculated by reference to the agreed initial rate of return.
(2) (a) Notwithstanding any other provision of the Tax Acts or the Capital Gains Tax Acts, carried interest to which this section applies and which is received by a partnership shall be deemed to be an amount of chargeable gains to which section 28(1) applies.
(b) Notwithstanding any other provision of the Tax Acts or the Capital Gains Tax Acts, carried interest to which this section applies and which is received by a company shall be deemed to be an amount of chargeable gains to which section 28(1) applies.
(3) (a) Notwithstanding any other provision of the Tax Acts or the Capital Gains Tax Acts, the rate of capital gains tax in respect of chargeable gains to which subsection (2)(a) apply shall be 15 per cent.
(b) Notwithstanding any other provision of the Tax Acts or the Capital Gains Tax Acts, the rate of corporation tax in respect of chargeable gains to which subsection (2)(b) apply shall be 12.5 per cent.”.
num: 42
paragraphs: — (1) Section 29 of the Principal Act is amended in subsection (4) by deleting “and the United Kingdom” in both places where it occurs.
(2) This section applies to disposals made on or after 20 November 2008.
num: 43
paragraphs: — (1) Section 549 of the Principal Act is amended—
(a) by substituting the following for subsection (6):
“(6) Where the asset mentioned in subsection (1) is subject to any right or restriction enforceable by the person making the disposal or by a person connected with that person, then that market value shall, where the amount of the consideration for the acquisition is in accordance with subsection (2) deemed to be equal to the market value of the asset, be what its market value would be if not subject to the right or restriction, reduced—
(a) by the lesser of—
(i) the market value of the right or restriction, and
(ii) the amount by which its extinction would enhance the value of the asset to its owner, or
(b) by the market value of the right or restriction, where the market value referred to in paragraph (a)(i) and the amount referred to in paragraph (a)(ii) are equal.”,
and
(b) by inserting the following after subsection (7):
“(7A) (a) This subsection applies where the asset mentioned in subsection (1) is subject to any right or restriction enforceable by the person making the disposal or by the person connected with that person, and the market value of the asset at the date of its acquisition (without reference to any right or restriction) is greater than the consideration, in money or money’s worth, given in payment for that asset.
(b) Where, on a subsequent disposal of an asset to which paragraph (a) applies by the person who acquired that asset, subsection (7) has the effect (without taking account of this subsection) of—
(i) increasing a loss, or
(ii) substituting a loss for a gain,
then that subsection shall not apply.”.
(2) This section applies to disposals made on or after 20 November 2008.
num: 44
paragraphs: — (1) The Principal Act is amended—
(a) in section 28(3) by substituting “22 per cent” for “20 per cent”, and
(b) in section 649A—
(i) by substituting the following for paragraph (b) of subsection (1):
“(b) in the case of a relevant disposal made on or after 15 October 2008, 22 per cent.”,
and
(ii) in subsection (2) by deleting paragraph (b)(i).
(2) This section applies to disposals made on or after 15 October 2008.
num: 45
paragraphs: — (1) The Principal Act is amended by inserting the following section after section 611:
“611A.— (1) In this section—
‘ new Society ’ means Cumann CÃ³gaisceoirÃ­ na hÃireann or, in the English language, The Pharmaceutical Society of Ireland established by section 5(2) of the Pharmacy Act 2007 ;
‘ old Society ’ means the Pharmaceutical Society of Ireland constituted and incorporated by section 4 of the Pharmacy (Ireland) Act 1875.
(2) An asset disposed of by the new Society which it acquired from the old Society by virtue of section 5 of the Pharmacy Act 2007 shall be deemed to have been acquired by the new Society at the same time and for the same consideration that it was acquired by the old Society, and the provisions of section 5 56 shall apply accordingly.”.
(2) This section applies to disposals made on or after 20 November 2008.
num: 46
paragraphs: — Chapter 1 of Part 2 of the Finance Act 2001 is amended—
(a) by substituting the following for section 99:
“Liability of persons.
num: 99
paragraphs: — (1) An authorised warehouse-keeper is liable for payment of the excise duty on excisable products released from a tax warehouse by such authorised warehousekeeper—
(a) for consumption, or
(b) for delivery under a suspension arrangement.
(2) The liability under subsection (1)(b) is fully or partly discharged where, and to the extent that, the excisable products have been (as the case may be)—
(a) received by another tax warehouse in the State,
(b) received by a person or trader, referred to in section 115(2), or
(c) exported from the Community,
and evidence to that effect is received within the prescribed time and in the prescribed manner.
(3) A registered trader or a non-registered trader is liable for payment of excise duty on excisable products received by such a trader under a suspension arrangement, and such payment shall be made when such products are so received.
(4) A tax representative, acting on behalf of the persons referred to in paragraph (a) or (b) of subsection (1) of section 113, is liable for the payment of excise duty on excisable products delivered to the State by or on behalf of such persons.
(5) Where excisable products are imported into the State from outside the Community, and the products are not then placed under a suspension arrangement, the person liable for payment of the excise duty is—
(a) the person who declares such products for free circulation, in accordance with Article 79 of Regulation (EEC) No. 2913/92, or
(b) where the excisable products are not declared for free circulation—
(i) any person who imports the products, and
(ii) any person who arranged for the importation of the products, or on whose behalf such importation was arranged.
(6) Where excisable products are produced, otherwise than under a suspension arrangement in a tax warehouse, the person liable for payment of the excise duty is—
(a) the producer of the excisable products, and
(b) any person who arranged for the production, or on whose behalf the production was carried out.
(7) Where any person, otherwise than under a suspension arrangement, has—
(a) sold or delivered, or
(b) kept for sale or delivery,
excisable products on which the appropriate excise duty has not been paid, then—
(i) such person,
(ii) any other person on whose behalf such excisable products have been so sold, kept, or delivered, and
(iii) any person to whom such products have been delivered,
is liable for payment of the excise duty on such excisable products.
(8) Where any person has received excisable products on which excise duty has been relieved, rebated, repaid, or charged at a rate lower than the appropriate standard rate, subject to a requirement that such excisable products are used for a specific purpose or in a specific manner, and where that requirement has not been satisfied, then the person who has received such excisable products is liable for payment of the excise duty on such products at the rate appropriate to them, without the benefit of any such relief, rebate, repayment or lower rate.
(9) Where under subsections (1) to (8) more than one person is, in a particular case, liable for payment of an excise duty liability, such persons are jointly and severally liable.
(10) Subsections (1) to (9) are without prejudice to the liability of excisable products to excise duty, or their liability to forfeiture, under excise law.
Assessment of excise duty payable.
99A.— (1) (a) In this section ‘ authorised officer ’ means an officer authorised by the Commissioners to exercise the powers conferred by this section.
(b) This section does not apply to betting duty chargeable under Chapter 1 of Part 2 of the Finance Act 2002 .
(2) Where an authorised officer has reason to believe that a person is liable for payment of excise duty, then such officer may make an assessment of the amount that, in the opinion of such officer, such person is liable to pay.
(3) The authorised officer shall give notice to each person assessed of every assessment made by such officer, setting out the amount of the assessment, the type of excise duty covered by the assessment, the right of appeal against the assessment, under section 146, and the time allowed for giving notice of such appeal.
(4) (a) Where an authorised officer has reason to believe that the amount of any assessment is excessive or deficient, or that there is no such liability, then such officer shall reduce, increase or vacate such assessment, as the case may be.
(b) In any case where an assessment is reduced or increased under paragraph (a), an authorised officer shall, accordingly, issue a revision of the notice referred to in subsection (3), to the person assessed.
(c) In any case where an assessment is vacated under paragraph (a), an authorised officer shall inform the person assessed in writing.
(5) Any assessment under subsection (2), and any action to collect the amount assessed, is without prejudice to—
(a) the liability to forfeiture, under the law relating to excise, of any goods or vehicles concerned in the assessment,
(b) any proceedings in relation to an offence under the law relating to excise, involving any goods or vehicles concerned in the assessment.”,
(b) in section 145 by inserting the following after subsection (1):
“(1A) No appeal shall lie under this section against an assessment made under section 99A (inserted by section 46 of the Finance (No. 2) Act 2008).”,
and
(c) in section 146 by substituting the following for subsections (1) and (2):
“(1) A person who is aggrieved by—
(a) a determination of the Commissioners under section 145, or
(b) an assessment made on that person under section 99A (inserted by section 46 of the Finance (No. 2) Act 2008),
may, in accordance with this section, appeal to the Appeal Commissioners against such determination or assessment, and the appeal is to be heard and determined by the Appeal Commissioners whose determination is final and conclusive unless a case is required to be stated in relation to it for the opinion of the High Court on a point of law.
(2) A person who intends to appeal under this section against a determination of the Commissioners, or against an assessment under section 99A, shall within 30 days of—
(a) the notification of such determination, or the expiry of the time limit for such determination, whichever is the earlier, or
(b) the notice of such assessment,
give notice in writing to the Commissioners of such intention.”.
num: 47
paragraphs: — The Finance Act 1999 is amended—
num: 48
paragraphs: — Chapter 1 of Part 2 of the Finance Act 1999 is amended—
(a) in section 94(1) by deleting the definitions of “motor octane number” and “research octane number”,
(b) in section 96(2A)—
(i) in paragraph (a) by deleting the word “unleaded” in both places where it occurs,
num: 49
paragraphs: — Chapter 1 of Part 2 of the Finance Act 2008 is amended—
(a) in section 60 by inserting the following after subsection (4):
“(5) (a) Where, at the time when the return under subsection (1) is made, a supplier does not have all the information required to determine the tax liability for supplies made during the last 2 months of an accounting period, the return may be completed on the basis of an estimate of that liability.
(b) Where paragraph (a) applies, the supplier shall, as soon as the required information is available and at the latest within 3 months of the end of the accounting period, submit a final return for that accounting period, and pay any amount of tax outstanding.
(c) No interest shall be charged on any amount of tax paid in accordance with paragraph (b), where that amount does not exceed 5 per cent of the total tax liability for the calendar year.”,
(b) in paragraph (c) of subsection (4) of section 63 by substituting the following for subparagraph (ii):
“(ii) For the purposes of subparagraph (i) the data on the fuel mix shall be that in respect of the most recent year for which, at the end of the accounting period concerned in the return, the Commission for Energy Regulation has published such data.”,
and
(c) in section 64 by substituting the following for subsection (3):
“(3) (a) Repayments in respect of relief under paragraphs (b) and (c) of subsection (1) of section 63 shall be made to the supplier of the electricity concerned.
(b) Repayments in respect of relief under paragraph (d) of subsection (1) of section 63 shall be made to the consumer of the electricity concerned.”.
num: 50
paragraphs: — The Finance Act 2003 is amended with effect as on and from 15 October 2008 by substituting the following for Schedule 2 to that Act:
num: 51
paragraphs: — Section 78A (as amended by section 73 of the Finance Act 2008 ) of the Finance Act 2003 is amended in subsection (1) by substituting “In the case of beer subject to alcohol products tax at the rate for beer exceeding 2.8% vol, a relief of half the amount of alcohol products tax paid on such beer shall,” for “A relief of half the amount of alcohol products tax paid on beer shall,”.
num: 52
paragraphs: — The Finance Act 2005 is amended with effect as on and from 15 October 2008 by substituting the following for Schedule 2 to that Act (as amended by section 74 of the Finance Act 2008 ):
num: 53
paragraphs: — (1) Section 67 of the Finance Act 2002 (as amended by section 90 of the Finance Act 2006 ) is amended—
(a) in subsection (1) by substituting “2 per cent” for “1 per cent”, and
(b) by inserting the following after subsection (1):
“(1A) For the avoidance of doubt, betting duty imposed by subsection (1) is chargeable on all bets placed by a person with a bookmaker at the bookmaker’s registered premises, irrespective of the means by which a bet is placed.”.
(2) Subsection (1)(a) comes into operation on 1 May 2009.
num: 54
paragraphs: — Section 71(2) (inserted by section 91 of the Finance Act 2006 ) of the Finance Act 2002 shall not have effect in respect of betting duty which becomes due on or after 1 January 2009.
num: 55
paragraphs: — (1) In this section—
“ aircraft ” means an aircraft capable of carrying 20 or more passengers, but does not include an aircraft used for State or military purposes;
“ airline operator ” means the operator or registered owner of an aircraft, offering or operating an air passenger service;
“ airport ” means an airport within the meaning of the Air Navigation and Transport (Amendment) Act 1998 , but does not include an airport from which the number of departures of passengers in the previous calendar year was less than 10,000;
“ airport authority ” means the person owning, whether in whole or in part, or managing, either alone or jointly with another person, an airport to which the provisions of the Air Navigation and Transport (Amendment) Act 1998 apply;
“ crew ” means the flight crew and cabin attendants of a flight;
“ Commissioners ” means the Revenue Commissioners;
“ disabled person ” means any person whose mobility when using transport is reduced due to any physical disability (sensory or locomotor, permanent or temporary), intellectual disability or impairment, or any other cause of disability, or age, and whose situation needs appropriate attention and the adaptation to his or her particular needs of the service made available to all passengers;
“ groundhandling supplier ” means a supplier of groundhandling services within the meaning of the European Communities (Access To The Groundhandling Market At Community Airports) Regulations 1998 ( S.I. No. 505 of 1998 );
“ officer ” means an officer of the Commissioners;
“ passenger ” means a person, other than a member of the crew (including any relief crew) of the aircraft, travelling on an aircraft, but does not include—
(a) a disabled person who has requested and availed of assistance from the airline operator in accordance with Council Regulation (EC) No. 1107/2006 1 , or the person travelling with the disabled person for the purposes of providing care or assistance to the disabled person,
(b) a person under the age of 2 years who does not occupy one of the seats provided for passengers on an aircraft,
(c) a transit or a transfer passenger;
“ registered owner ”, in relation to an aircraft, means the person who is registered as the owner of the aircraft in—
(a) the register established under section 58 of the Irish Aviation Authority Act 1993 , or
(b) a register (by whatever name called) of another state that corresponds to the register so established;
num: 56
paragraphs: — Section 7 of the Betting Act 1931 is amended—
(a) by deleting subsection (2), and
(b) in subsection (4) by deleting “and shall have affixed thereto by adhesion the photograph of such person required by this section to be sent by him with the application for such licence”.
num: 57
paragraphs: — (1) The enactments set out in Schedule 1 are repealed to the extent mentioned in the third column opposite the reference to the enactment concerned.
(2) Subsection (1) comes into operation on such day as the Minister for Finance may appoint by order.
num: 58
paragraphs: — Paragraph 4 of Part B (which relates to wholesale dealers’ licences) of the First Schedule to the Finance (1909-10) Act 1910 shall cease to have effect.
num: 59
paragraphs: — (1) In this section “section 43” means section 43 of the Finance (1909-10) Act 1910.
(2) The duties of excise imposed—
num: 60
paragraphs: — Section 130 of the Finance Act 1992 is amended—
(a) by substituting the following for the definition of ‘CO 2 emissions’:
“ ‘ CO 2 emissions ’ means the level of carbon dioxide (CO 2) emissions for a vehicle measured in accordance with the provisions of Council Directive 80/1268/EEC of 16 December 1980 1 (as amended) and listed in Annex VIII of Council Directive 70/156/EEC of 6 February 1970 2 (as amended) and displayed in accordance with the provisions of Council Directive 1999/94/EC of 13 December 1999 3 (as amended) and contained in the relevant EC type-approval certificate or EC certificate of conformity or any other appropriate documentation which confirms compliance with any measures taken to give effect in the State to any act of the European Communities relating to the approximation of the laws of Member States in respect of type-approval for the type of vehicle concerned;”,
(b) by substituting “a motor-cycle” for “a bicycle, tricycle or quadricycle propelled by an engine or motor or with an attachment for propelling it by mechanical power, whether or not the attachment is being used, a moped, a scooter and an autocycle,” in the definition of ‘ mechanically propelled vehicle’, and
(c) by substituting the following for the definition of “ motor-cycle”:
“ ‘ motor-cycle’ means a mechanically propelled vehicle being a bicycle, tricycle or quadricycle propelled by an engine or motor or with an attachment for propelling it by mechanical power, whether or not the attachment is being used, a moped, a scooter and an autocycle.”.
1OJ No. L 375 of 31 December 1980, p.36
2OJ No. L 42 of 23 February 1970, p.1
3OJ No. L 12 of 18 January 2000, p.16
num: 61
paragraphs: — (1) Section 131 of the Finance Act 1992 is amended in subsection (1) by inserting the following after paragraph (b):
“(ba) (i) In respect of a vehicle which is within any particular category of vehicle that is prescribed for the purposes of this paragraph or is within any other class of vehicle that is prescribed, the Commissioners may, as a condition of registration, require confirmation in accordance with this paragraph that such vehicle—
(i) is a mechanically propelled vehicle as defined in section 130, and
(ii) complies with any matter prescribed for the purposes of subparagraph (ii)(II).
(ii) The Commissioners may appoint one or more than one individual or body (in this paragraph referred to as a ‘ competent person ’) to carry out a pre-registration examination of a vehicle to which subparagraph (i) relates—
(I) to determine whether or not each vehicle duly examined under this paragraph is a mechanically propelled vehicle for the purposes of section 130, and
(II) to ascertain whether or not such other prescribed matters (being matters required to be ascertained) have been complied with as are necessary—
(A) for the registration of the vehicle concerned, and
(B) for the proper operation of vehicle registration tax.
(iii) Where in respect of a vehicle the Commissioners require confirmation as provided for by subparagraph (i), then they shall not register the vehicle without the production of a statement issued by a competent person that the vehicle—
(i) is a mechanically propelled vehicle, and
(ii) complies with any matter prescribed for the purposes of subparagraph (ii)(II) and which relates to the vehicle.
(iv) The fee to be charged by the competent person for the examination of a vehicle shall be agreed with the Commissioners. Different fees may be so agreed in respect of different types of examination and different categories or other classes of vehicles. The fee shall be paid by the person presenting the vehicle concerned for pre-registration examination. The fee shall be credited against the vehicle registration tax payable in respect of the registration of the vehicle but no other fees, charges or costs incurred by the person presenting the vehicle for examination shall be so credited.
(v) A competent person shall comply with any instructions and directions given by the Revenue Commissioners to such person for the purposes of this paragraph.
(vi) The Commissioners may revoke the appointment of a competent person.”.
(2) This section comes into operation on 1 January 2010.
num: 62
paragraphs: — Section 132 of the Finance Act 1992 is amended—
(a) by substituting the following for paragraph (2):
“(2) Vehicle registration tax shall become due and be paid at the time of the registration of a vehicle or the making of the declaration under section 131(3), as may be appropriate, by—
(a) an authorised person in accordance with section 136(5)(b),
(b) the person who registers the vehicle,
(c) the person who has converted the vehicle where the prescribed particulars in relation to the conversion have not been declared to the Commissioners in accordance with section 131(3),
(d) the person who is in possession of the vehicle that is a converted vehicle which has not been declared to the Commissioners in accordance with section 131(4),
and where under paragraphs (a) to (d), more than one such person is, in any case, liable for the payment of a vehicle registration tax liability, then such persons shall be jointly and severally liable.”,
and
(b) by inserting the following after subsection (3):
“(3A) Notwithstanding subsection (3), where the Commissioners are of the opinion that a vehicle has not been registered at the time specified in Regulation 8 of the Vehicle Registration and Taxation Regulations 1992 ( S.I. No. 318 of 1992 ), the amount of vehicle registration tax due and payable in accordance with subsection (3) shall be increased by an amount calculated in accordance with the following formula:
A × P × N
where—
A is the amount of vehicle registration tax calculated in accordance with subsection (3),
P is 0.1 per cent, and
N is the number of days from the date the vehicle should have been registered in accordance with Regulation 8 of the Vehicle Registration and Taxation Regulations 1992 and the date of registration of the vehicle.”.
num: 63
paragraphs: — (1) Section 134 of the Finance Act 1992 is amended—
num: 64
paragraphs: — (1) Chapter IV of Part II of the Finance Act 1992 is amended by substituting the following for section 135:
“135.— (1) A vehicle which is temporarily brought into the State may be exempted by the Commissioners from the requirement to be registered, in such manner and subject to such conditions, restrictions and limitations as the Minister may prescribe by regulations made under section 141(3) if the vehicle is—
(a) brought into the State by a person established outside the State for such person’s private or business use,
(b) brought into the State by an individual established in the State for such individual’s private or business use where such an individual—
(i) is employed by an employer established in another Member State who provides a vehicle as part of their contract of employment, where such vehicle is owned or leased by the employer, or
(ii) is self-employed and has established a legally accountable undertaking in another Member State, whose business is carried on solely or principally in the other Member State,
and where the vehicle is a category A vehicle or a motor-cycle, it is used principally for business use in another Member State,
(c) brought into the State solely for the purpose of a competition, exhibition, show, demonstration, or similar purpose and is not intended to be sold or offered for sale in the State and is intended to be taken out of the State on the fulfilment of such purpose, or
(d) designed or specially adapted as professional equipment brought into the State by a person established outside the State for use exclusively by such person or under his or her personal supervision.
(2) A vehicle which is temporarily brought into the State for a period in excess of 42 days (or such longer period as may be prescribed by the Commissioners) may, subject to regulations, be required to be registered in accordance with section 131 without the payment of vehicle registration tax.
(3) In respect of a vehicle to which subsection (2) relates, a statement issued by a competent person under section 131(1)(ba) shall be produced to the Commissioners prior to the registration of the vehicle.
(4) Any fee charged by the competent person for the examination shall be agreed with the Commissioners and shall be paid by the person presenting the vehicle for the pre-registration examination. Such fee shall be credited against any vehicle registration tax subsequently payable by the person so presenting if the vehicle subsequently becomes liable for that tax without the vehicle being permanently removed from the State.
(5) In this section a reference to the temporary importation of a vehicle shall be construed in accordance with Regulation 5 of the Temporary Exemption from Registration of Vehicles Regulations 1993 ( S.I. No. 60 of 1993 ).”.
(2) Subsection (1) comes into operation on such a day or days as the Minister for Finance appoints by order.
num: 65
paragraphs: — Section 135B of the Finance Act 1992 is amended by inserting the following after subsection (5):
“(6) (a) Subject to sections 105B, 105C and 105D of the Finance Act 2001 where an authorised person pays an amount of vehicle registration tax in respect of a vehicle which was not due, any repayment of the overpaid amount and interest (if any) payable under section 105D shall, subject to the provisions of this subsection, be made to the authorised person on condition that the authorised person pays the amount of the repayment and interest to the person who was the registered owner of the vehicle at the time of the registration of the vehicle.
(b) (i) Where the registered owner of the vehicle at the date of the repayment to the authorised person is the first registered owner the amount of the repayment shall be the amount of the vehicle registration tax overpaid.
(ii) Where the first registered owner has disposed of the vehicle prior to the date of the repayment the amount of the repayment shall be calculated as follows:
(OP + V) — (S × R)
where—
OP is the original purchase price,
V is the amount of vehicle registration tax paid,
S is the price, if any, received by the first registered owner at the time of disposal, and
R is the rate of vehicle registration tax charged at the time of registration on purchase.
(c) For the purpose of paragraph (b) the first registered owner shall as a condition of the repayment present documentary proof to the Commissioners of the disposal of the vehicle and the price (if any) received by that owner in respect of that disposal.
(d) An authorised person shall be entitled to deduct an amount not more than 10 per cent of the repayment from the payment to the first registered owner of the vehicle to cover the costs of the authorised person in processing the repayment claim.
(e) Where an authorised person fails to make a payment within 30 days to the first registered owner in accordance with paragraph (a) following payment by the Commissioners of such repayment, any amount unpaid, shall for the purpose of this Act, be treated as if it were vehicle registration tax due by the authorised person on the day following the expiry of the 30 day period.”.
num: 66
paragraphs: — Section 141 of the Finance Act 1992 is amended in subsection (2) by substituting “section 130,” for “section 130.” in paragraph (v) and by inserting the following after that paragraph:
“(w) make provision for matters to be prescribed for the purposes of section 131(1)(ba), and for the purposes of section 135, in respect of the pre-registration examination of vehicles.”.
num: 67
paragraphs: — In this Part “Principal Act” means the Value-Added Tax Act 1972 .
num: 68
paragraphs: — Section 3 of the Principal Act is amended in subsection (1C)—
(a) in paragraph (a), by substituting “immovable goods.” for “immovable goods, and” and
(b) by deleting paragraph (b).
num: 69
paragraphs: — Section 7A of the Principal Act is amended—
(a) in subsection (1)(d)(iv)—
(i) by inserting “the landlord or” after “when”, and
(ii) by substituting “occupies” for “commences to occupy”,
and
(b) in subsection (2)—
(i) in paragraph (a) by substituting the following for subparagraph (ii):
“(ii) where the landlord, whether or not connected to the tenant, or a person connected to the landlord, occupies the immovable goods that is subject to that letting whether that landlord or that person occupies those goods by way of letting or otherwise.”,
and
(ii) to insert the following after paragraph (b):
“(c) Paragraph (a)(ii) and subsection (1)(d)(iv) shall not apply where the occupant (being any person including the landlord referred to in that paragraph or that subsection) uses the immovable goods which are the subject of the letting for the purpose of making supplies which entitle that occupant to deduct, in accordance with section 12, at least 90 per cent of all tax chargeable in respect of goods or services used by that occupant for the purpose of making those supplies. However, where a landlord has exercised a landlord’s option to tax in respect of a letting to which paragraph (a)(ii) would have applied but for this paragraph, paragraph (a)(ii) shall apply from the end of the first accounting year in which the immovable goods are used for the purpose of making supplies which entitle that occupant to deduct less than 90 per cent of the said tax chargeable.”.
num: 70
paragraphs: — Section 7B of the Principal Act is amended by inserting the following after subsection (5)—
“(6) Where a landlord has a letting to which subsection (3) or (4) applies and that landlord becomes a person in a group within the meaning of section 8(8) on or after 1 July 2008 and the person to whom that letting is made is a person in that group, then the person referred to in section 8(8)(a)(i)(I) in respect of that group shall be liable to pay the amount as specified in subsection (3)(a) as if it were tax due in accordance with section 19—
(a) in the case of a landlord who became a person in that group before the date of passing of the Finance (No. 2) Act 2008, in the taxable period in which that Act is passed, or
(b) in the case of a landlord who became a person in that group after the date of passing of the Finance (No. 2) Act 2008, in the taxable period during which that landlord became a person in that group.”.
num: 71
paragraphs: — The Principal Act is amended with effect from 1 January 2010 by inserting the following after section 10B:
“10C.— (1) In this section—
‘ bought-in services ’ means goods or services which a travel agent purchases for the direct benefit of a traveller from another taxable person or from a person engaged in business outside the State;
‘ margin scheme services ’ means bought-in services supplied by a travel agent to a traveller;
‘ travel agent ’ means a taxable person who acts as a principal in the supply to a traveller of margin scheme services, and for the purposes of this section travel agent includes tour operator;
‘ travel agent’s margin ’, in relation to a supply of margin scheme services, means an amount which is calculated in accordance with the following formula:
A — B
where—
A is the total consideration which the travel agent becomes entitled to receive in respect of or in relation to that supply of margin scheme services including all taxes, commissions, costs and charges whatsoever and value-added tax payable in respect of that supply, and
B is the amount payable by the travel agent to a supplier in respect of bought-in services included in that supply of margin scheme services to the traveller, but any bought-in services purchased by the travel agent prior to 1 January 2010 in respect of which that travel agent claims deductibility in accordance with section 12 shall be disregarded in calculating the margin,
and if that B is greater than that A the travel agent’s margin in respect of that supply shall be deemed to be nil;
‘ travel agent’s margin scheme ’ means the special arrangements for the taxation of margin scheme services.
(2) A supply of margin scheme services by a travel agent to a traveller in respect of a journey shall be treated as a single supply.
(3) The place of supply of margin scheme services is the place where a travel agent has established that travel agent’s business, but if those services are provided from a fixed establishment of that travel agent located in a place other than the place where that travel agent has established that travel agent’s business, the place of supply of those services is the place where that fixed establishment is located.
(4) The travel agent’s margin scheme shall apply to the supply of margin scheme services in the State.
(5) Notwithstanding section 10, the amount on which tax is chargeable by virtue of section 2(1)(a) on a supply of margin scheme services shall be the travel agent’s margin less the amount of tax included in that margin.
(6) Notwithstanding sections 12 and 13, a travel agent shall not be entitled to a deduction or a refund of tax borne or paid in respect of bought-in services supplied by that travel agent as margin scheme services.
(7) Where a travel agent supplies margin scheme services together with other goods or services to a traveller for a total consideration, then that total consideration shall be apportioned by that travel agent so as to correctly reflect the ratio which the value of those margin scheme services bears to that total consideration, and in that case the proportion of the total consideration relating to the value of the margin scheme services shall be subject to the travel agent’s margin scheme.
(8) Margin scheme services shall be treated as intermediary services when the bought-in services are performed outside the Community.
(9) Where a travel agent makes a supply of margin scheme services that includes some services that are treated as intermediary services in accordance with subsection (8), then the total travel agent’s margin in respect of that supply shall be apportioned by that travel agent so as to correctly reflect the ratio which the cost to that travel agent of the bought-in services used in the margin scheme services that are treated as intermediary services in that supply bears to the total cost to that travel agent of all bought-in services used in making that supply of margin scheme services.
(10) A travel agent being an accountable person who supplies margin scheme services shall include the tax due on that person’s supplies of margin scheme services for a taxable period in the return that that person is required to furnish in accordance with section 19(3).
(11) The Revenue Commissioners may make such regulations as they consider necessary for the purposes of the operation of this section including provisions for simplified accounting arrangements.”.
num: 72
paragraphs: — Section 11 of the Principal Act is amended with effect from 1 December 2008 in subsection (1)(a) by substituting “21.5 per cent” for “21 per cent”.
num: 73
paragraphs: — Section 12 of the Principal Act is amended—
(a) in subsection (1)—
(i) in paragraph (a) by deleting “and” in subparagraph (vii), and by substituting “section 12A, and” for “section 12A.” in subparagraph (viii),
(ii) by inserting the following after subparagraph (viii) of paragraph (a):
num: 74
paragraphs: — Section 20 of the Principal Act is amended—
(a) in subsection (5)(a) by substituting “unless they determine that the refund of that overpaid amount or part thereof would result in the unjust enrichment of the claimant” for “unless that refund would result in the unjust enrichment of the claimant”, and
(b) by substituting the following for paragraphs (b), (c) and (d) of subsection (5):
“(b) A person who claims a refund of an overpaid amount under this subsection shall make that claim in writing setting out full details of the circumstances of the case and identifying the overpaid amount in respect of each taxable period to which the claim relates. The claimant shall furnish such relevant documentation to support the claim as the Revenue Commissioners may request.
(c) (i) For the purposes of determining whether a refund of an overpaid amount or part thereof would result in the unjust enrichment of a claimant, the Revenue Commissioners shall have regard to—
(I) the extent to which the cost of the overpaid amount was, for practical purposes, passed on by the claimant to other persons in the price charged by that claimant for goods or services supplied by that claimant,
(II) any net loss of profits which they have reason to believe, based on their own analysis and on any information that may be provided to them by the claimant, was borne by the claimant due to the mistaken assumption made in the operation of the tax, and
(III) any other factors that the claimant brings to their attention in this context.
(ii) The Revenue Commissioners may request from the claimant all reasonable information relating to the circumstances giving rise to the claim as may assist them in reaching a determination for the purposes of subparagraph (i).
(d) Where, in accordance with paragraph (c), the Revenue Commissioners determine that a refund of an overpaid amount or part thereof would result in the unjust enrichment of a claimant, they shall refund only so much of the overpaid amount as would not result in the unjust enrichment of that claimant.”.
num: 75
paragraphs: — Section 32 of the Principal Act is amended in subsection (1)—
(a) by inserting the following after paragraph (dc):
“(dca) the manner in which the travel agent’s margin scheme referred to in section 10C shall operate;”,
and
(b) by inserting the following after paragraph (dd):
“(dda) the manner in which the deduction entitlement referred to in section 12(1)(a)(ix) may be calculated;”.
num: 76
paragraphs: — The First Schedule to the Principal Act is amended with effect from 1 January 2010 by deleting subparagraph (a) of paragraph (ix).
num: 77
paragraphs: — The Second Schedule to the Principal Act is amended—
(a) with effect from 1 January 2010 by inserting the following after paragraph (vib):
“(vic) services which are treated as intermediary services in accordance with section 10C(8);”,
and
(b) in paragraph (xii)—
(i) by substituting the following for clauses (I) and (II) of subparagraph (b):
“(I) tea and preparations thereof when supplied in non-drinkable form,
(II) cocoa, coffee and chicory and other roasted coffee substitutes, and preparations and extracts thereof, when supplied in non-drinkable form,”,
and
(ii) by inserting the following after subparagraph (b):
“(ba) tea and preparations thereof when supplied in drinkable form,
(bb) cocoa, coffee and chicory and other roasted coffee substitutes, and preparations and extracts thereof, when supplied in drinkable form,”.
num: 78
paragraphs: — In this Part “Principal Act” means the Stamp Duties Consolidation Act 1999 .
num: 79
paragraphs: — (1) The Principal Act is amended—
(a) in section 1—
(i) by inserting the following after the definition of “ accountable person ”:
“ ‘ approved person ’ and ‘authorised person’ shall each be construed in accordance with section 917G of the Taxes Consolidation Act 1997 ;”,
(ii) by inserting the following after the definitions of “ ‘ executed’ and ‘execution’ ”:
“ ‘filer’, in relation to an instrument in respect of which a paper return is delivered to the Commissioners, means the person who would be the approved person or, as the case may be, the authorised person had the paper return been an electronic return;”,
and
(iii) by inserting the following after the definition of “ money”:
“ ‘paper return’ means a return in paper form that satisfies the requirements of an electronic return and is processed by the Commissioners through the e-stamping system;”,
and
(b) by inserting the following after section 8:
“Penalties: returns.
8A.— Where, in relation to an instrument, an approved person, authorised person or a filer, as the case may be, delivers an electronic return or a paper return, to the Commissioners which does not reflect the facts and circumstances of which the person is aware, affecting the liability of such instrument to duty or the amount of the duty with which such instrument is chargeable that are required by the Commissioners to be disclosed on such return, then such person shall incur a penalty of €3,000.”.
(2) The Finance Act 2008 is amended in section 111(1)—
(a) in paragraph (a)(iii) (which inserts a definition of “ stamp certificate ” into section 1 of the Principal Act) by substituting the following for the said definition of “ stamp cer tificate ”:
“ ‘ stamp certificate ’ means—
(a) a certificate issued electronically by the Commissioners by means of the e-stamping system, or
(b) a certificate processed electronically by the Commissioners through the e-stamping system and issued by them in paper form;”,
(b) in paragraph (c) (which amends section 8(2) of the Principal Act)—
(i) by substituting “such statement (other than where the Commissioners are required to express their opinion in relation to the chargeability of the instrument to duty in accordance with section 20) is not required to be delivered” for “such statement is not required to be delivered”, and
(ii) by substituting “retained by the accountable person for a period of 6 years” for “retained for a period of 4 years”,
in the said amendment to section 8(2),
and
(c) in paragraph (f) (which inserts section 17A into the Principal Act)—
(i) in paragraph (d) of the said section 17A—
(I) by substituting “electronic return or a paper return” for “electronic return”, and
(II) by deleting the word “otherwise”,
and
(ii) in paragraph (f)(i) of the said section 17A—
(I) by substituting “interest and penalty” for “penalty”, and
(II) by substituting “electronic return or paper return” for “electronic return”.
(3) (a) Subsection (1) of this section comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.
(b) The amendments (effected by subsection (2)) to sections 1, 8(2) and 17A of the Principal Act are deemed to have been made as on and from the passing of the Finance Act 2008 and shall come into operation in accordance with section 111(2) of the Finance Act 2008 .
num: 80
paragraphs: — (1) Section 5 of the Principal Act is amended in subsection (3)—
(a) by substituting the following for paragraph (a):
“(a) (i) is issued during the period the agreement is in force, where the agreement is one that relates to the issue of such instrument, or
(ii) is processed during the period the agreement is in force, where the agreement is one that relates to the processing of such instrument,
and”,
(b) by substituting “were issued or processed, as the case may be,” for “were issued”, and
(c) by inserting the following after subsection (3):
“(3A) For the purposes of subsection (3) ‘ processed ’, in relation to an instrument that is a bill of exchange, means a bill of exchange that has been presented for payment and has been paid.”.
(2) This section applies as respects agreements (being agreements to which section 5 of the Principal Act relates) entered into on or after 1 January 2009.
num: 81
paragraphs: — Section 14 of the Principal Act is amended by inserting the following after subsection (2)—
“(2A) (a) Subject to the conditions in paragraph (b) being satisfied, a penalty of €25 referred to in subsection (1) or a penalty referred to in subsection (2) shall not be payable in respect of any instrument, first executed before the passing of the Finance (No. 2) Act 2008, in respect of which the stamp duty chargeable has not been paid to the Commissioners before the passing of that Act.
(b) The conditions required to be satisfied by this paragraph are that—
(i) the instrument is delivered to the Commissioners for stamping before the expiration of the period of 56 days commencing on the passing of the Finance (No. 2) Act 2008 (in this paragraph referred to as the ‘expiration date’), and
(ii) the stamp duty chargeable on the instrument is paid to the Commissioners, together with interest relating to such duty, on or before the expiration date.”.
num: 82
paragraphs: — (1) The Principal Act is amended—
(a) by inserting the following after section 31:
“Resting in contract.
31A.— (1) In this section—
‘ public private partnership arrangement ’ has the meaning assigned to it by section 3(1)(a) of the State Authorities (Public Private Partnership Arrangements) Act 2002 ;
‘ tax life ’, in relation to a building or structure, means the period referred to—
(a) in section 272 (4) of the Taxes Consolidation Act 1997 , or
(b) in that section as applied by section 843A(3), 372AX(2) or 373AY(4) of the Taxes Consolidation Act 1997 ,
in relation to the building or structure concerned.
(2) Where—
(a) the holder of an estate or interest in land in the State enters into a contract or agreement with another person for the sale of the estate or interest to that other person or to a nominee of that other person, and
(b) a payment which amounts to, or as the case may be payments which together amount to, 25 per cent or more of the consideration for the sale has been paid to, or at the direction of, the holder of the estate or interest at any time pursuant to the contract or agreement, and
(c) within 30 days of the first such time, a conveyance or transfer, made in conformity with the contract or agreement, and executed by the parties to the contract or agreement is not presented to the Commissioners for stamping with ad valorem duty chargeable on it,
then the contract or agreement shall be chargeable with the same ad valorem duty, to be paid by the other person, as if it were a conveyance or transfer of the estate or interest in the land.
(3) Subject to subsection (4), subsection (2) shall not apply to—
(a) a contract or agreement for the sale of a relevant interest (within the meaning of section 269 of the Taxes Consolidation Act 1997 ) in a building or a structure, entered into before the beginning of, or during, the tax life of the building or structure, being—
(i) a building or structure to which paragraph (g), (i), (j), (l) or (m) of section 268(1) of the Taxes Consolidation Act 1997 applies,
(ii) (I) a building or structure to which section 372AX of the Taxes Consolidation Act 1997 applies, or
(II) a qualifying premises to which section 372AY of the Taxes Consolidation Act 1997 applies,
or
(iii) a qualifying premises to which section 843A of the Taxes Consolidation Act 1997 applies,
or
(b) a contract or agreement for the sale of an interest in land entered into solely in connection with a public private partnership arrangement.
(4) Subsection (3) shall not apply to a contract or agreement for the sale of a relevant interest where such sale is, as the case may be, to a person—
(a) to whom paragraph (a), (b), (c) or (d) of subsection (1A), (1D) or (1E) of section 268 of the Taxes Consolidation Act 1997 applies,
(b) to whom section 372AZ(1)(a) of the Taxes Consolidation Act 1997 applies, or
(c) to whom section 843A(5) of the Taxes Consolidation Act 1997 applies.
(5) Where duty has been paid, in respect of a contract or agreement, in accordance with subsection (2), a conveyance or transfer made in conformity with the contract or agreement shall not be chargeable with any duty, and the Commissioners, on application, either shall denote the payment of the ad valorem duty on the conveyance or transfer, or shall transfer the ad valorem duty to the conveyance or transfer on production to them of the contract or agreement, duly stamped.
(6) The ad valorem duty paid on any contract or agreement, in accordance with subsection (2), shall be returned where it is shown to the satisfaction of the Commissioners that the contract or agreement has been rescinded or annulled.
Licence agreements.
31B.— (1) In this section—
‘ development ’, in relation to any land, means—
(a) the construction, demolition, extension, alteration or reconstruction of any building on the land, or
(b) any engineering or other operation in, on, over or under the land to adapt it for materially altered use;
‘ public private partnership arrangement ’ has the meaning assigned to it by section 3(1)(a) of the State Authorities (Public Private Partnership Arrangements) Act 2002 .
(2) Where—
(a) the holder of an estate or interest in land in the State enters into an agreement with another person under which that other person, or a nominee of that other person, is entitled to enter onto the land to carry out development on that land, and
(b) by virtue of the agreement, otherwise than as consideration for the sale of all or part of the estate or interest in the land, the holder of the estate or interest in the land receives at any time a payment which amounts to, or as the case may be payments which together amount to, 25 per cent or more of the market value of the land concerned,
then within 30 days of the first such time, the agreement shall be chargeable with the same ad valorem duty, to be paid by that other person, as if it were a conveyance or transfer of the estate or interest in the land.
(3) Subsection (2) shall not apply to an agreement, to which this section applies, entered into solely in connection with a public private partnership arrangement.
(4) The ad valorem duty paid on any agreement, in accordance with subsection (2), shall be returned where it is shown to the satisfaction of the Commissioners that the agreement has been rescinded or annulled.”,
(b) by deleting section 36,
(c) by inserting the following after section 50:
“Agreements for more than 35 years charged as leases.
50A.— (1) In this section ‘ public private partnership arrangement ’ has the meaning assigned to it by section 3(1)(a) of the State Authorities (Public Private Partnership Arrangements) Act 2002 .
(2) An agreement for a lease or with respect to the letting of any lands, tenements, or heritable subjects for any term exceeding 35 years, shall be charged with the same duty as if it were an actual lease made for the term and consideration mentioned in the agreement where 25 per cent or more of that consideration has been paid.
(3) Subsection (2) shall not apply to an agreement for a lease entered into solely in connection with a public private partnership arrangement.
(4) Where duty has been paid, in respect of an agreement for a lease, in accordance with subsection (2), a lease made in conformity with the agreement for a lease shall not be chargeable with any duty, and the Commissioners, on application, either shall denote the payment of the ad valorem duty on the lease, or shall transfer the ad valorem duty to the lease on production to them of the agreement for a lease, duly stamped.
(5) The ad valorem duty paid on any agreement for a lease, in accordance with subsection (2), shall be returned where it is shown to the satisfaction of the Commissioners that the agreement for a lease has been rescinded or annulled.”,
and
num: 83
paragraphs: — (1) Section 34 of the Principal Act is amended—
(a) by substituting “Notwithstanding section 37, where,” for “Where,”,
(b) by substituting “a sale of property, or an exchange of property within the meaning of section 37, as the case may be,” for “a sale of property,”, and
(c) by substituting “the vendor, or the transferor, as the case may be,” for “the vendor” in each place where it occurs.
(2) This section applies as respects conveyances or transfers executed on or after 20 November 2008.
num: 84
paragraphs: — Section 81AA of the Principal Act is amended in subsection (16) by substituting “31 December 2012” for “31 December 2008”.
num: 85
paragraphs: — Section 81C of the Principal Act is amended in subsection (12) by substituting “30 June 2011” for “30 June 2009”.
num: 86
paragraphs: — (1) Part 9 of the Principal Act is amended—
(a) in section 123B(4)—
(i) in paragraphs (a) and (b) by substituting “€2.50” for “€5” (inserted by the Finance Act 2008 ), and
(ii) in paragraph (c) by substituting “€5” for “€10” (as so inserted),
and
(b) in section 123C(1) by substituting the following for the second-mentioned reference to B in the definition of “ preliminary duty ”:
“B is—
(a) 40 per cent where the base period is 2007, or
(b) 80 per cent where the base period is a subsequent year;”.
(2) Subsection (1)(a) has effect as respects any statement that falls to be delivered by a bank or building society after 31 December 2008.
num: 87
paragraphs: — (1) Schedule 1 to the Principal Act is amended—
(a) under the Heading “BILL OF EXCHANGE” by substituting “€0.50” for “€0.30”,
(b) by substituting the following for the provisions (other than the exemption for a foreign loan security) under the Heading “CONVEYANCE or TRANSFER on sale of any stocks or marketable securities”:
“(1) Where the amount or value of the consideration for the sale which is attributable to stocks or marketable securities does not exceed €1,000 and the instrument contains a statement certifying that the transaction effected by that instrument does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration which is attributable to stocks or marketable securities exceeds €1,000:
for the consideration which is attributable to stocks or marketable securities
Exempt.
(2) Where paragraph (1) does not apply:
for the consideration which is attributable to stocks or marketable securities
1 per cent of the consideration but where the calculation results in an amount which is not a multiple of €1 the amount so calculated shall, if less than €1, be rounded up to €1 and, if more than €1, be rounded down to the nearest €.”,
(c) by substituting the following for paragraphs (13), (14), (14A) and (14B) under the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or apolicy of life insurance”:
“(13) Where paragraphs (7) to (12) do not apply and the amount or value of the consideration for the sale is wholly or partly attributable to property which is not residential property
6 per cent of the consideration which is attributable to property which is not residential property but where the calculation results in an amount which is not a multiple of €1 the amount so calculated shall be rounded down to the nearest €.”,
and
(d) by substituting the following for clauses (vii), (viii), (ix) and (x) of subparagraph (b) of paragraph (3) under the Heading “LEASE”:
“(vii) the amount or value of such consideration is wholly or partly attributable to property which is not residential property and clauses (i) to (vi) do not apply.........
6 per cent of the consideration which is attributable to property which is not residential property but where the calculation results in an amount which is not a multiple of €1 the amount so calculated shall be rounded down to the nearest €.”.
(2) (a) Subsection (1)(a) applies as respects bills of exchange drawn on or after 15 October 2008.
(b) Subsection (1)(b) applies as respects instruments executed on or after the date of the passing of this Act.
(c) Paragraphs (c) and (d) of subsection (1) apply as respects instruments executed on or after 15 October 2008.
num: 88
paragraphs: — In this Part “ Principal Act ” means the Capital Acquisitions Tax Consolidation Act 2003 .
num: 89
paragraphs: — (1) Section 89 of the Principal Act is amended, in paragraph (a) of the definition of “ agricultural property ” in subsection (1) and in the definition of “ farmer ” in that subsection, by substituting “in a Member State” for “in the State”.
(2) This section applies to gifts and inheritances taken on or after 20 November 2008.
num: 90
paragraphs: — (1) The Table in Part 2 of Schedule 2 to the Principal Act is amended by substituting “22” for “20”.
(2) This section applies to gifts and inheritances taken on or after 20 November 2008.
num: 91
paragraphs: — In this Part “ Principal Act ” means the Taxes Consolidation Act 1997 .
num: 92
paragraphs: — The Principal Act is amended—
(a) in section 891B(1) by substituting the following for paragraph (a) of the definition of “ financial institution ”:
“(a) a person who holds or has held a licence under section 9 of the Central Bank Act 1971 , or a person who holds or has held a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under that section,”,
(b) in section 900 by substituting the following for subsection (4):
“(4) Nothing in this section shall be construed as requiring any person to disclose to an authorised officer—
(a) information with respect to which a claim to legal professional privilege could be maintained in legal proceedings,
(b) information of a confidential medical nature, or
(c) professional advice of a confidential nature given to a client (other than advice given as part of a dishonest, fraudulent or criminal purpose).”,
(c) in section 901 by substituting the following for subsection (3):
“(3) Nothing in this section shall be construed as requiring any person to disclose to an authorised officer—
(a) information with respect to which a claim to legal professional privilege could be maintained in legal proceedings,
(b) information of a confidential medical nature, or
(c) professional advice of a confidential nature given to a client (other than advice given as part of a dishonest, fraudulent or criminal purpose).”,
(d) in section 902 by substituting the following for subsection (9):
“(9) Nothing in this section shall be construed as requiring any person to disclose to an authorised officer—
(a) information with respect to which a claim to legal professional privilege could be maintained in legal proceedings,
(b) information of a confidential medical nature, or
(c) professional advice of a confidential nature given to a client (other than advice given as part of a dishonest, fraudulent or criminal purpose).”,
(e) in section 902A by substituting the following for subsection (6):
“(6) Nothing in this section shall be construed as requiring any person to disclose to an authorised officer—
(a) information with respect to which a claim to legal professional privilege could be maintained in legal proceedings,
(b) information of a confidential medical nature, or
(c) professional advice of a confidential nature given to a client (other than advice given as part of a dishonest, fraudulent or criminal purpose).”,
(f) in section 905(2) by substituting the following for paragraph (c):
“(c) Nothing in this section shall be construed as requiring any person to disclose to an authorised officer—
(i) information with respect to which a claim to legal professional privilege could be maintained in legal proceedings,
(ii) information of a confidential medical nature, or
(iii) professional advice of a confidential nature given to a client (other than advice given as part of a dishonest, fraudulent or criminal purpose).”,
(g) in section 906A(1) by substituting the following for paragraph (a) of the definition of “ financial institution ”:
“(a) a person who holds or has held a licence under section 9 of the Central Bank Act 1971 , or a person who holds or has held a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under that section,”,
(h) in section 908A(1) by substituting the following for paragraph (a) of the definition of “ financial institution ”:
“(a) a person who holds or has held a licence under section 9 of the Central Bank Act 1971 , or a person who holds or has held a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under that section,”,
(i) in section 908B(1) by substituting the following for paragraph (a) of the definition of “ financial institution ”:
“(a) a person who holds or has held a licence under section 9 of the Central Bank Act 1971 , or a person who holds or has held a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under that section,”,
(j) in section 1002(1) by substituting the following for the definition of “ financial institution ”:
“ ‘ financial institution’ means —
(a) a person who holds or has held a licence under section 9 of the Central Bank Act 1971 , or a person who holds or has held a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under that section,
(b) a person referred to in section 7(4) of the Central Bank Act 1971 ,
(c) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 ( S.I. No. 395 of 1992 )) which has been authorised by the Central Bank and Financial Services Authority of Ireland to carry on business of a credit institution in accordance with the provisions of the supervisory enactments (within the meaning of those Regulations), or
(d) a branch of a financial institution which records deposits in its books as liabilities of the branch;”,
and
(k) in section 1078(3B) by inserting “within a period of 30 days commencing on the day the order is made” after “in subsection (3A)”.
num: 93
paragraphs: — The Principal Act is amended by inserting the following after section 896:
“896A.— (1) In this section—
‘ authorised officer ’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred on them by this section;
‘ settlement ’ and ‘ settlor ’ have the same meanings respectively as in section 10.
(2) Where any person, in the course of a trade or profession carried on by that person, has been concerned with the making of a settlement and knows or has reason to believe that, at the time of the making of the settlement—
(a) the settlor was resident or ordinarily resident in the State, and
(b) the trustees of the settlement were not resident in the State,
then that person shall, within the period specified in subsection (3), deliver to the appropriate inspector (within the meaning assigned by section 894(1)) a statement specifying—
(i) the name and address of the settlor,
(ii) the names and addresses of the persons who are the trustees of the settlement, and
(iii) the date on which the settlement was made or created.
(3) The statement referred to in subsection (2) shall be delivered—
(a) in a case where the settlement is one made on or after the date of the passing of the Finance (No. 2) Act 2008, within 4 months of the date of the making of the settlement, or
(b) in a case where the settlement is one made within the 5 year period prior to the passing of the Finance (No. 2) Act 2008, within 6 months of the date of the passing of the Act.
(4) For the purposes of this section trustees of a settlement shall be regarded as not resident in the State unless the general administration of the settlement is ordinarily carried on in the State and the trustees or a majority of each class of trustees are for the time being resident in the State.
(5) An authorised officer may by notice in writing require any person, whom the authorised officer has reason to believe has information relating to a settlement, to furnish to the authorised officer such information within such time as the authorised officer may direct.”.
num: 94
paragraphs: — (1) Chapter 5 of Part 42 of the Principal Act is amended—
(a) in section 1003(5) by substituting “an amount equal to 80 per cent of the market value” for “an amount equal to the market value”, and
(b) in section 1003A(5) by substituting “an amount equal to 80 per cent of the market value” for “an amount equal to the market value”.
(2) Subsection (1) applies—
(a) in the case of paragraph (a) of that subsection, as respects any determination made under section 1003(2)(a) of the Principal Act by the selection committee (within the meaning of that section), on or after 1 January 2009, and
(b) in the case of paragraph (b) of that subsection, as respects any determination made under section 1003A(2)(a) of the Principal Act by the Minister for the Environment, Heritage and Local Government, on or after 1 January 2009.
num: 95
paragraphs: — Section 811A of the Principal Act is amended by inserting the following after subsection (6):
“(6A) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this section to be performed or discharged by the Revenue Commissioners, and references in this section to the Revenue Commissioners shall with any necessary modifications be construed as including references to an officer so nominated.”.
num: 96
paragraphs: — (1) The enactments specified in Schedule 3 are amended to the extent and in the manner specified in paragraphs 1 and 2 of that Schedule.
num: 97
paragraphs: — The enactments specified in Schedule 4 are amended to the extent and manner specified in paragraphs 1 to 6 of, and the Table to, that Schedule.
num: 98
paragraphs: — (1) The enactments specified in Schedule 5 are amended or repealed to the extent and manner specified in that Schedule and, unless the contrary is stated, shall come into effect after the passing of this Act.
num: 99
paragraphs: — The enactments specified in Schedule 6 —
num: 100
paragraphs: — (1) In this section—
“ capital services ” has the same meaning as it has in the principal section;
“ fifty-sixth additional annuity ” means the sum charged on the Central Fund under subsection (2);
“ principal section ” means section 22 of the Finance Act 1950 .
(2) A sum of €403,709,206 to redeem borrowings, and interest on such borrowings, in respect of capital services shall be charged annually on the Central Fund or the growing produce of that Fund in the thirty successive financial years commencing with the financial year ending on 31 December 2009.
(3) The fifty-sixth additional annuity shall be paid into the Capital Services Redemption Account in such manner and at such times in the relevant financial year as the Minister for Finance may determine.
(4) Any amount of the fifty-sixth additional annuity, not exceeding €310,300,000 in any financial year, may be applied toward defraying the interest on the public debt.
(5) The balance of the fifty-sixth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.
num: 101
paragraphs: — All taxes and duties imposed by this Act are placed under the care and management of the Revenue Commissioners.
num: 102
paragraphs: — (1) This Act may be cited as the Finance (No. 2) Act 2008.
(2) Part 1 shall be construed together with—
(a) in so far as it relates to income tax, income levy and parking levy, the Income Tax Acts,
(b) in so far as it relates to corporation tax, the Corporation Tax Acts, and
(c) in so far as it relates to capital gains tax, the Capital Gains Tax Acts.
(3) Part 2 , in so far as it relates to duties of excise, shall be construed together with the statutes which relate to those duties and to the management of those duties.
(4) Part 3 shall be construed together with the Value-Added Tax Acts 1972 to 2008 and may be cited together with those Acts as the Value-Added Tax Acts.
(5) Part 4 shall be construed together with the Stamp Duties Consolidation Act 1999 and the enactments amending or extending that Act.
(6) Part 5 shall be construed together with the Capital Acquisitions Tax Consolidation Act 2003 and the enactments amending or extending that Act.
(7) Part 6 in so far as it relates to—
(a) income tax, shall be construed together with the Income Tax Acts,
(b) corporation tax, shall be construed together with the Corporation Tax Acts,
(c) capital gains tax, shall be construed together with the Capital Gains Tax Acts,
(d) customs, shall be construed together with the Custom Acts,
(e) duties of excise, shall be construed together with the statutes which relate to duties of excise and the management of those duties,
(f) value-added tax, shall be construed together with the Value-Added Tax Acts,
(g) stamp duty, shall be construed together with the Stamp Duties Consolidation Act 1999 and the enactments amending or extending that Act,
(h) residential property tax, shall be construed together with Part VI of the Finance Act 1983 and the enactments amending or extending that Part, and
(i) gift tax or inheritance tax, shall be construed together with the Capital Acquisitions Tax Consolidation Act 2003 and the enactments amending or extending that Act.
(8) Except where otherwise expressly provided in Part 1 , that Part is deemed to have come into force and takes effect as on and from 1 January 2009.
(9) Except where otherwise expressly provided for, where a provision of this Act is to come into operation on the making of an order by the Minister for Finance, that provision shall come into operation on such day or days as the Minister for Finance shall appoint either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.