Finance Act 2018
Source: Iris Oifigiúl 2018-12-28 01782-01782

num: 1
paragraphs: In this Part “Principal Act” means the Taxes Consolidation Act 1997 .
num: 2
paragraphs: (1) Section 531AN of the Principal Act is amended—
(a) in subsection (3), by substituting “€19,874” for “€19,372”, and
(b) by substituting the following Table for the Table to that section:
“TABLE
PART 1
Part of aggregate income
Rate of universal social charge
(1)
(2)
The first €12,012
num: 0
paragraphs: 5 per cent
The next €7,862
2 per cent
The next €50,170
num: 4
paragraphs: 5 per cent
The remainder
8 per cent
PART 2
Part of aggregate income
Rate of universal social charge
(1)
(2)
The first €12,012
num: 0
paragraphs: 5 per cent
The remainder
2 per cent
”.
(2) Subsection (1) applies for the year of assessment 2019 and each subsequent year of assessment.
num: 3
paragraphs: As respects the year of assessment 2019 and subsequent years of assessment section 15 of the Principal Act is amended—
(a) in subsection (3)(i), by substituting “€26,300” for “€25,550”, and
(b) by substituting the following Table for the Table to that section:
“TABLE
PART 1
Part of taxable income
(1)
Rate of tax
(2)
Description of rate
(3)
The first €35,300
20 per cent
the standard rate
The remainder
40 per cent
the higher rate
PART 2
Part of taxable income
(1)
Rate of tax
(2)
Description of rate
(3)
The first €39,300
20 per cent
the standard rate
The remainder
40 per cent
the higher rate
PART 3
Part of taxable income
(1)
Rate of tax
(2)
Description of rate
(3)
The first €44,300
20 per cent
the standard rate
The remainder
40 per cent
the higher rate
”.
num: 4
paragraphs: (1) Section 472AB of the Principal Act is amended in subsection (2)—
(a) in paragraph (a), by substituting “€1,350” for “€1,150”, and
(b) in paragraph (b), by substituting “€1,350” for “€1,150”.
(2) Subsection (1) applies for the year of assessment 2019 and each subsequent year of assessment.
num: 5
paragraphs: (1) Section 466A of the Principal Act is amended in subsection (2) by substituting “€1,500” for “€1,200”.
(2) Subsection (1) applies for the year of assessment 2019 and each subsequent year of assessment.
num: 6
paragraphs: (1) Section 191 of the Principal Act is amended—
(a) in subsection (1), by inserting the following definitions:
“ ‘comparable overseas scheme’ means a scheme, located in a Member State of the European Economic Area (other than the State), whose purpose is to compensate individuals who have been diagnosed positive for Hepatitis C or HIV resulting from the use of blood products;
‘eligible person’ means—
(a) a person referred to in subsection (1) of section 4 of the Act, in respect of matters referred to in that section,
(b) a person referred to in any Regulations made under section 9 of the Act, in respect of matters referred to in those Regulations, or
(c) a person eligible to receive a payment from a comparable overseas scheme;”,
(b) by substituting the following for subsection (2):
“(2) This section shall apply to any payment in respect of compensation—
(a) by the Tribunal in accordance with the Act,
(b) following the institution by or on behalf of a person of a civil action for damages in respect of personal injury, or
(c) by a comparable overseas scheme,
to an eligible person.”,
and
(c) in subsection (3)(b), by inserting “or a comparable overseas scheme” after “the Tribunal”.
(2) Subsection (1) shall come into operation on 1 January 2019.
num: 7
paragraphs: Chapter 1 of Part 7 of the Principal Act is amended by inserting the following section after section 194A:
“Exemption of certain childcare support payments
194AA. (1) In this section—
‘cohabitant’ has the same meaning as it has in Part 44B;
‘eligible child’ means a child in respect of whom a qualifying payment or a relevant payment is made;
‘Minister’ means the Minister for Children and Youth Affairs;
‘qualifying payment’ means a payment made under section 15 of the Childcare Support Act 2018 ;
‘relevant payment’ means a payment made by or on behalf of the Minister under any of the following childcare support programmes or schemes:
(a) Community Childcare Subvention;
(b) Community Childcare Subvention Plus;
(c) Community Childcare Subvention Resettlement;
(d) Community Childcare Subvention Resettlement (Transitional);
(e) Community Childcare Subvention Universal;
(f) Training and Employment Childcare.
(2) A qualifying payment shall be exempt from income tax and shall not be reckoned in computing income of the parent or guardian, or the cohabitant of the parent or guardian, of an eligible child for the purposes of the Income Tax Acts.
(3) A relevant payment made on or after 1 January 2019 shall be exempt from income tax and shall not be reckoned in computing income of the parent or guardian, or the cohabitant of the parent or guardian, of the eligible child for the purposes of the Income Tax Acts.
(4) A relevant payment made before 1 January 2019 shall be treated as if it was exempt from income tax in the year of assessment to which it relates and shall not be reckoned in computing income of the parent or guardian, or the cohabitant of the parent or guardian, of the eligible child for the purposes of the Income Tax Acts.”.
num: 8
paragraphs: (1) Chapter 3 of Part 5 of the Principal Act is amended by inserting the following section after section 120A:
“Certain benefits in kind: members of Permanent Defence Force
120B. (1) Notwithstanding section 118, section 112 shall not apply in relation to any expense incurred by or on behalf of the Minister for Defence—
(a) in or in connection with the provision of living accommodation to a member of the Permanent Defence Force on land occupied by, used by, or under the control (whether temporarily or otherwise) of the Permanent Defence Force, or
(b) in or in connection with the provision of health care to a member of the Permanent Defence Force.
(2) In this section—
‘health care’ means prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability, and includes care received by a woman in respect of a pregnancy, but does not include—
(a) routine ophthalmic treatment, or
(b) cosmetic surgery or similar procedures, unless the surgery or procedure is necessary to ameliorate a physical deformity arising from, or directly related to, a congenital abnormality, a personal injury or a disfiguring disease;
‘routine ophthalmic treatment’ means the provision and repairing of spectacles or contact lenses.”.
(2) Subsection (1) shall apply for the year of assessment 2018 and each subsequent year of assessment.
num: 9
paragraphs: Part 5 of the Principal Act is amended—
(a) in section 121(2)(b)—
(i) in subparagraph (ii), by substituting “running the car,” for “running the car, and”,
(ii) in subparagraph (iii)(II), by substituting “31 December 2018,” for “31 December 2018.”, and
(iii) by inserting the following subparagraphs after subparagraph (iii):
“(iv) notwithstanding subparagraph (ii), where a car made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the car does not exceed €50,000, no amount shall be treated as emoluments of the employment,
(v) notwithstanding subparagraph (ii), where—
(I) a car made available to an employee during the period 1 January 2019 to 31 December 2020 is an electric vehicle,
(II) the original market value of the car exceeds €50,000, and
(III) the car was first made available to the employee during the period 10 October 2017 to 9 October 2018,
no amount shall be treated as emoluments of the employment, and
(vi) where a car made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the car exceeds €50,000, the cash equivalent of the benefit of the car ascertained under subsection (3)(a) or (4)(a), as the case may be, shall be computed on the original market value of the car reduced by €50,000.”.
and
(b) in section 121A(2)(b)—
(i) in subparagraph (ii), by substituting “running the van,” for “running the van, and”,
(ii) in subparagraph (iii)(II), by substituting “31 December 2018,” for “31 December 2018.”, and
(iii) by inserting the following subparagraphs after subparagraph (iii):
“(iv) notwithstanding subparagraph (ii), where a van made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the van does not exceed €50,000, no amount shall be treated as emoluments of the employment,
(v) notwithstanding subparagraph (ii), where—
(I) a van made available to an employee during the period 1 January 2019 to 31 December 2020 is an electric vehicle,
(II) the original market value of the van exceeds €50,000, and
(III) the van was first made available to the employee during the period 10 October 2017 to 9 October 2018,
no amount shall be treated as emoluments of the employment, and
(vi) where a van made available during the period 1 January 2019 to 31 December 2021 is an electric vehicle and the original market value of the van exceeds €50,000, the cash equivalent of the benefit of the van ascertained under subsection (3) shall be computed on the original market value of the van reduced by €50,000.”.
num: 10
paragraphs: Section 985A of the Principal Act is amended in subsection (1)(a)(iii) by substituting “section 112A or 112AA” for “section 112A”.
num: 11
paragraphs: (1) Section 128F of the Principal Act is amended—
(a) in subsection (1), in the definition of “qualifying share option”, by substituting the following paragraph for paragraph (d):
“(d) the total market value of all shares, in respect of which qualifying share options have been granted by the qualifying company to an employee or director, does not exceed—
(i) €100,000 in any one year of assessment,
(ii) €300,000 in all years of assessment, or
(iii) the amount of annual emoluments of the qualifying individual in the year of assessment in which the qualifying share option is granted,”,
and
(b) in subsection (8), by substituting “The Revenue Commissioners may publish the following information in relation to all qualifying companies:” for all of the words from and including “A qualifying company” down to and including “all qualifying companies:”.
(2) Subsection (1)(a) shall come into operation on such day as the Minister for Finance may appoint by order.
num: 12
paragraphs: (1) The Principal Act is amended by inserting the following section after section 790C:
“Relief for additional superannuation contribution under Public Service Pay and Pensions Act 2017
num: 13
paragraphs: Section 126 of the Principal Act is amended—
(a) by substituting the following for subsection (1):
“(1) In this section—
‘the Acts’ means the Social Welfare Acts;
‘the Act of 2005’ means the Social Welfare Consolidation Act 2005 .”,
(b) by inserting the following after subsection (6):
“(6A) A payment which is—
(a) described in column (1) of the Table to this section,
(b) paid on the basis specified in column (2) of that Table, and
(c) made by the Minister for Employment Affairs and Social Protection to an individual on or after 1 January 2019,
shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.
(6B) A payment which—
(a) is described in column (1) of the Table to this section,
(b) is paid on the basis specified in column (2) of that Table, and
(c) was made by the Minister for Employment Affairs and Social Protection to an individual before 1 January 2019,
shall be treated as if it was exempt from income tax in the year of assessment to which it relates and shall not be reckoned in computing income for the purposes of the Income Tax Acts.”,
(c) by deleting subsection (7), and
(d) by inserting the following Table to the section:
“TABLE
Description of payment
(1)
Basis on which payment is made
(2)
Basic supplementary welfare allowance
Section 189 of the Act of 2005
Back to education allowance
A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to education allowance’
Back to work enterprise allowance
A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to work enterprise allowance’
Back to school clothing and footwear allowance
A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to school clothing and footwear allowance’
Carer’s support grant
Section 225 of the Act of 2005
Constant attendance allowance
Section 78 of the Act of 2005
Death benefit - funeral expenses
Section 84 of the Act of 2005
Death benefit - orphans
Section 83 of the Act of 2005
Direct provision allowance
A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Direct provision allowance’
Disability allowance
Section 210 of the Act of 2005
Disablement gratuity
Section 75(8) of the Act of 2005
Domiciliary care allowance
Section 186F of the Act of 2005
Exceptional needs payment
Section 201 of the Act of 2005
Farm assist
Section 214 of the Act of 2005
Fuel allowance
A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Fuel allowance’
Guardian’s payment (contributory)
Section 130 of the Act of 2005
Guardian’s payment (non-contributory)
Section 168 of the Act of 2005
Household benefit package
A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Household benefit package’
Humanitarian assistance payment
A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Humanitarian assistance payment’
Jobseeker’s allowance
Section 141 of the Act of 2005
Jobseeker’s transitional payment
Section 148A of the Act of 2005
Medical care
Section 86 of the Act of 2005
Part-time job incentive scheme
A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Part-time job incentive scheme’
Rent allowance
Section 23 of the Housing (Private Rented Dwellings) Act 1982
Supplementary welfare allowance
Section 198 of the Act of 2005
Telephone support allowance
A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Telephone support allowance’
Training support grant
A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Training support grant’
Urgent needs payment
Section 202 of the Act of 2005
Widowed or surviving civil partner grant
Section 137 of the Act of 2005
Working family payment
Section 228 of the Act of 2005
Youth employment support scheme
A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Youth employment support scheme’
”.
num: 14
paragraphs: (1) The Principal Act is amended by inserting the following after section 480A:
“Relief arising in special circumstances
480B. (1) Subject to subsection (12), this section applies where emoluments—
(a) which are chargeable to income tax under subsection (3) of section 112, and
(b) from which income tax has been deducted in accordance with the provisions of Chapter 4 of Part 42 and any regulations made thereunder,
are paid on 31 December in a tax year or, if that year is a leap year, on 30 or 31 December in that year (referred to in this section as the ‘relevant date’) to an individual who is paid weekly or fortnightly.
(2) Subject to subsections (4) and (5), a reduction, deduction or tax credit provided for under a provision specified in subsection (3) which is applicable to the individual concerned shall be increased by—
(a) one fifty-second of the amount of the reduction, deduction or tax credit, as the case may be, where the individual is paid weekly and is so paid on the relevant date, or
(b) one twenty-sixth of the amount of the reduction, deduction or tax credit, as the case may be, where the individual is paid fortnightly and is so paid on the relevant date.
(3) The provisions referred to in subsection (2) are sections 461, 461A, 462B, 463, 464, 465, 466, 466A, 468, 470(2), 472, 472AB, 472B and 472BA.
(4) Where the emoluments paid to the individual concerned on the relevant date are less than the amount calculated as follows—
A + B
where—
A is the amount by which the reductions and deductions applicable to the individual concerned are increased in accordance with paragraph (a) or (b) of subsection (2), as the case may be, and
B is the amount by which the tax credits applicable to the individual concerned are increased in accordance with paragraph (a) or (b) of subsection (2), as the case may be, divided by the standard rate of tax for the tax year,
the amount of the increase effected by subsection (2) shall be an amount equal to the amount of the emoluments paid to the individual concerned on the relevant date.
(5) Where the individual concerned is paid weekly and fortnightly on a relevant date in a tax year, the amount of the increase effected by subsection (2) shall be the greater of the increase resulting from—
(a) the application of subsections (2) and (4) to the weekly payment only, and
(b) the application of subsections (2) and (4) to the fortnightly payment only.
(6) Subject to subsections (8) and (9), the part of taxable income specified in the first row of column (1) of Parts 1, 2 and 3 of the Table to section 15 shall be increased by—
(a) one fifty-second of the amount specified, where the individual concerned is paid weekly and is so paid on the relevant date, or
(b) one twenty-sixth of the amount specified, where the individual concerned is paid fortnightly and is so paid on the relevant date.
(7) Subject to subsections (8) and (9), where—
(a) subsection (3) of section 15 applies, and
(b) this section applies both in respect of—
(i) emoluments paid to the individual concerned which are charged to tax for a year of assessment in accordance with section 1017 or 1031C, and
(ii) emoluments paid to the spouse or civil partner of the individual referred to in subparagraph (i),
the amount specified in subparagraph (i) of section 15(3) shall be increased by—
(I) one fifty-second of the amount specified, where the spouse or civil partner of the individual referred to in subparagraph (i) is paid weekly and is so paid on the relevant date, or
(II) one twenty-sixth of the amount specified, where the spouse or civil partner of the individual referred to in subparagraph (i) is paid fortnightly and is so paid on the relevant date.
(8) Where the emoluments paid to the individual concerned on the relevant date are less than the amount calculated as follows—
A + B
where—
A is the amount by which the part of taxable income specified in the first row of column (1) of Part 1, 2 or 3, as the case may be, of the Table to section 15 is increased in accordance with subsection (6), and
B is the amount, if any, by which the amount specified in subparagraph (i) of section 15(3) is increased in accordance with subsection (7),
the aggregate amount of the increase to the part of taxable income specified in the first row of column (1) of Part 1, 2 or 3, as the case may be, of the Table to section 15 effected by the application of subsection (6) and, to the extent that it is applicable, subsection (7), shall be an amount equal to the amount of the emoluments paid to the individual concerned on the relevant date.
(9) Where the individual concerned or their spouse or civil partner is, or both the individual and their spouse or civil partner are, paid weekly and fortnightly on a relevant date in a tax year, the amount of the increase effected by the application of subsections (6), (7) and (8) shall be the greatest of the amounts which result from the application of those subsections to each of the possible permutations of only one of the two payments to the individual or their spouse or civil partner, as the case may be, being taken into account for the purpose of calculating the increase effected by the application of those subsections.
(10) Subject to subsection (11), where section 188 applies, the specified amount (within the meaning of that section) shall be increased by—
(a) one fifty-second of the specified amount, where the individual concerned is paid weekly and is so paid on the relevant date, or
(b) one twenty-sixth of the specified amount, where the individual concerned is paid fortnightly and is so paid on the relevant date,
but the amount of any such increase shall not exceed the amount of the emoluments paid to the individual on the relevant date.
(11) Where the individual concerned is paid weekly and fortnightly on a relevant date in a tax year, the amount of the increase effected by subsection (10) shall be the greater of the increase resulting from—
(a) the application of that subsection to the weekly payment only, and
(b) the application of that subsection to the fortnightly payment only.
(12) This section shall not apply where—
(a) the normal day on which emoluments are paid to the individual concerned during a tax year changes either during that year or the preceding year, or
(b) a payment of emoluments occurs on a relevant date and that date is not the normal day on which emoluments are paid to the individual concerned.
(13) A reference in subsection (12) to the normal day is a reference to the day during the weekly or fortnightly cycle, as the case may be, on which emoluments are paid to the individual concerned.”.
(2) Subsection (1) applies for the year of assessment 2018 and each subsequent year of assessment.
num: 15
paragraphs: Section 825C of the Principal Act is amended—
(a) in subsection (2A)(e), by substituting “within 90 days” for “within 30 days”, and
(b) in subsection (2B)(b)(i), by substituting for “but in respect of the tax years 2012, 2013 and 2014 where this amount exceeds €500,000, “A” shall be €500,000, and” the following:
“but—
(A) in respect of the tax years 2012, 2013 and 2014 where this amount exceeds €500,000, ‘A’ shall be €500,000,
(B) in respect of the tax years 2019 and 2020, in the case of a relevant employee who first arrives in the State on or after 1 January 2019 for the purposes set out in subsection (2A)(b), where this amount exceeds €1,000,000, ‘A’ shall be €1,000,000, and
(C) in respect of the tax year 2020, in the case of a relevant employee who first arrives in the State on or before 31 December 2018 for the purposes set out in subsection (2A)(b), where this amount exceeds €1,000,000, ‘A’ shall be €1,000,000,
and”.
num: 16
paragraphs: (1) Section 205A of the Principal Act is amended—
(a) in subsection (1) by substituting the following for the definition of “relevant payment”:
“ ‘relevant payment’ means—
(a) a payment or payments made, directly or indirectly, to a relevant individual by or on behalf of the Minister for Justice and Equality pursuant to the Magdalen Restorative Justice Ex-Gratia Scheme (that is to say the Scheme administered, under that title, by the Minister for Justice and Equality in furtherance of decisions of the Government of 5 November 2013 and 28 May 2018, respectively),
num: 17
paragraphs: (1) Section 285A of the Principal Act is amended—
(a) by substituting the following for subsection (1):
“(1) In this section—
‘energy-efficiency criteria’ has the meaning given to it by subsection (4);
‘energy-efficient equipment’ means equipment complying with the energy-efficiency criteria and named on the specified list;
‘relevant period’ means the period commencing on the date of the making of the Taxes Consolidation Act 1997 (Accelerated Capital Allowances for Energy Efficient Equipment) Order 2008 ( S.I. No. 399 of 2008 ) and ending on 31 December 2020;
‘SEAI’ means Sustainable Energy Ireland - The Sustainable Energy Authority of Ireland;
‘specified list’ has the meaning given to it by subsection (2A);
num: 18
paragraphs: Chapter 2 of Part 9 of the Principal Act is amended by inserting the following after section 285B:
“Acceleration of wear and tear allowances for gas vehicles and refuelling equipment
285C. (1) In this section—
‘biogas’ means gas produced from biomass;
‘biomass’ means the biodegradable fraction of—
(a) products, waste and residues from agriculture, forestry and related industries including, in respect of agriculture, vegetal and animal substances, and
(b) industrial and municipal waste;
‘CN code’ means a Community subdivision to the combined nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 19871 as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 20012 ;
‘compressed natural gas’ means petroleum gases and other gaseous hydrocarbons in gaseous state falling within CN code 2711 21 00;
‘gas refuelling station’ means a premises, or part of a premises, at which gaseous fuel is supplied to a gas vehicle;
‘gas vehicle’ means a mechanically propelled road vehicle in the engine of which gaseous fuel is used for combustion;
‘gaseous fuel’ means compressed natural gas, liquefied natural gas or biogas;
‘liquefied natural gas’ means petroleum gases and other gaseous hydrocarbons in liquefied state falling within CN code 2711 11 00;
‘qualifying expenditure’ means capital expenditure incurred during the relevant period on the provision of—
(a) qualifying refuelling equipment, or
(b) qualifying vehicles;
‘qualifying refuelling equipment’ means refuelling equipment, which is unused and not second-hand, installed at a gas refuelling station;
‘qualifying vehicle’ means a gas vehicle, which is—
(a) constructed or adapted for—
(i) the conveyance of goods or burden of any description,
(ii) the haulage by road of other vehicles, or
(iii) the carriage of passengers,
(b) unused and not second-hand, and
(c) either—
(i) not commonly used as a private vehicle and unsuitable to be so used, or
(ii) provided or hired, wholly or mainly, for the purpose of hire to or the carriage of members of the public in the ordinary course of trade;
‘refuelling equipment’ means—
(a) a storage tank for gaseous fuel,
(b) a compressor, pump, control or meter used for the purposes of refuelling gas vehicles, or
(c) equipment for supplying gaseous fuel to the fuel tank of a gas vehicle;
‘relevant period’ means the period commencing on 1 January 2019 and ending on 31 December 2021.
(2) Where a person has incurred qualifying expenditure for the purposes of a trade carried on by that person, and for any chargeable period a wear and tear allowance is to be made under section 284 in respect of qualifying refuelling equipment or a qualifying vehicle to which that qualifying expenditure relates, subsection (2) of that section shall apply as if the reference in paragraph (ad) of that subsection to 12. 5 per cent were a reference to 100 per cent.
(3) Subsection (2) shall not apply where an allowance on account of the wear and tear of the qualifying refuelling equipment or qualifying vehicle concerned is made in accordance with—
(a) section 284(2)(a)(ii), as applied by section 286(2), or
(b) section 284(2)(ad), as applied by section 285A(2).”.
1 OJ No. L256, 7.9.1987, p.1
2 OJ No. L279, 23.10.2001, p.1
num: 19
paragraphs: (1) Chapter 2 of Part 9 of the Principal Act is amended by inserting the following after section 285A—
“Acceleration of wear and tear allowances for childcare and fitness centre equipment
285B. (1) In this section—
‘qualifying expenditure’ means capital expenditure incurred on qualifying machinery or plant by a person carrying on a trade;
‘qualifying machinery or plant’ means machinery or plant in use in a qualifying premises;
‘qualifying premises’ has the same meaning as it has in section 843B.
(2) Where a person has incurred qualifying expenditure, and for any chargeable period a wear and tear allowance is to be made under section 284, subsection (2) of that section shall apply as if the reference in paragraph (ad) of that subsection to 12. 5 per cent were a reference to 100 per cent.”.
(2) (a) Part 36 of the Principal Act is amended by inserting the following after section 843A—
“Capital allowances for buildings used for the purposes of providing childcare services or a fitness centre to employees
843B. (1) In this section—
‘childcare services’ means any form of childminding services or supervised activities to care for children, whether or not provided on a regular basis, in respect of which it can be shown that the applicable requirements of the Child Care Act 1991 (Early Years Services) Regulations 2016 ( S.I. No. 221 of 2016 ) have been complied with;
‘construction’ has the same meaning as it has in section 270;
‘fitness centre’ means a gymnasium used exclusively in providing a range of facilities designed to improve and maintain the physical fitness and health of participants;
‘qualifying expenditure’ means expenditure incurred by an employer, carrying on a trade or a profession, on the construction of a qualifying premises;
‘qualifying premises’ means a building or structure which is in use for the purposes of providing childcare services or the facilities of a fitness centre to employees of the employer, referred to in the immediately preceding definition, which is not accessible nor available for use by the general public and, where that employer is a company, where the employees are employees of that company or of a company connected with that company.
(2) The provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply in relation to qualifying expenditure on a qualifying premises—
(a) as if the qualifying premises were, at all times at which it is a qualifying premises, a building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by reason of its use for the purpose specified in section 268(1)(a), and
(b) where any activity carried on in the qualifying premises is not a trade, as if (for the purposes only of the making of allowances and charges by virtue of paragraph (a)), it were a trade.
(3) In relation to qualifying expenditure incurred on a qualifying premises, section 272 shall apply as if—
(a) in subsection (3)(a)(ii) of that section the reference to 4 per cent were a reference to 15 per cent, and
(b) in subsection (4)(a) of that section the following were substituted for subparagraph (ii):
‘(ii) where capital expenditure on the construction of the building or structure is incurred, 7 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure.’.
(4) Notwithstanding section 274(1), no balancing allowance or balancing charge shall be made in relation to a qualifying premises by reason of any event, referred to in that section, which occurs more than 7 years after the qualifying premises was first used subsequent to the incurring of the qualifying expenditure on the construction of the qualifying premises.
(5) Where relief is given by virtue of this section in relation to qualifying expenditure incurred on the construction of a building or structure, relief shall not be given in respect of that expenditure under any other provision of the Tax Acts.
(6) A person shall not be entitled to allowances under this section while that person is regarded as an undertaking in difficulty for the purposes of the Commission Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty3 .”.
num: 20
paragraphs: (1) Section 438A of the Principal Act is amended by—
(a) substituting the following for subsection (1):
“(1) In this section—
‘loan’ includes advance;
‘relevant arrangement’ means any arrangement, the main purpose, or one of the main purposes, of which is to avoid or reduce a charge to tax under section 438.”,
and
(b) inserting the following after subsection (3):
“(3A) Where a participator, or an associate of a participator, in a close company is party to any relevant arrangement, as a result of which a loan is made to a participator, or an associate of a participator, which, apart from this section, does not give rise to a charge under subsection (1) of section 438, that section shall apply as if the loan had been made by the close company to such participator, or such associate of a participator, as the case may be.”.
(2) Subsection (1) shall apply to a relevant arrangement that is entered into on or after 18 October 2018.
num: 21
paragraphs: Part 23 of the Principal Act is amended—
(a) in section 657—
(i) in subsection (1), by deleting the definitions of “an individual to whom subsection (1) applies”, “company” and “director”,
(ii) by deleting subsections (2) and (3),
(iii) in subsection (4)(a), by deleting “other than an individual to whom subsection (1) applies,”, and
(iv) in subsection (6), by substituting the following paragraph for paragraph (b):
“(b) This subsection shall not apply for any year of assessment in which the individual is not chargeable to tax on profits or gains from farming.”,
(b) in section 666(4)—
(i) in paragraph (a), by substituting “31 December 2021” for “31 December 2018”, and
(ii) in paragraph (b), by substituting “year 2021” for “year 2018”,
(c) in section 667B—
(i) in subsection (5)(b), by substituting “31 December 2021” for “31 December 2018”,
(ii) in subsection (5A)(b), by substituting “Subject to subsection (5B), where” for “Where”,
(iii) by inserting the following subsection after subsection (5A):
“(5B) The aggregate amount of relief, within the meaning of subsection (5A), granted to a qualifying farmer under this section, section 667D and section 81AA of the Stamp Duties Consolidation Act 1999 shall not exceed the limit of €70,000 as provided for by Article 18 of Commission Regulation (EU) No. 702/2014 of 25 June 20144 or that Regulation as may be revised from time to time.”,
and
(iv) in subsection (7), by substituting “microenterprise or small enterprise in Article 2 of Annex I to Commission Regulation (EU) No. 702/2014 of 25 June 2014 or that Regulation as may be revised from time to time” for “ ‘small and medium-sized enterprises’ in Article 2 of Commission Regulation (EC) No. 1857/2006 of 15 December 2006”,
(d) in section 667C—
(i) in subsection (2)(b), by substituting “2021” for “2018” in each place,
(ii) in subsection (4), by substituting “31 December 2021” for “31 December 2018”, and
(iii) in subsection (4A)(a)(vi), by substituting “subsection (1A)(b)(v)(II)(A)” for “subsection (1A)(c)”,
and
(e) in section 667D—
(i) in subsection (2)(e), by substituting “agreement under subsection (2)(d)” for “partnership agreement”, and
(ii) by inserting the following subsection after subsection (7):
“(8) (a) In this subsection—
‘relevant tax’ means any income tax or universal social charge;
‘relief’ means an amount equivalent to an amount determined by the formula—
A - B
where—
A is the amount of relevant tax that would be payable by a partner in a succession farm partnership for a year of assessment in which a succession tax credit is claimed by the partner, computed as if this section did not apply, and
B is the amount of relevant tax payable by the partner for that year of assessment.
(b) The aggregate amount of relief granted to a person under this section, section 667B and section 81AA of the Stamp Duties Consolidation Act 1999 shall not exceed the limit of €70,000 as provided for by Article 18 of Commission Regulation (EU) No. 702/2014 of 25 June 2014 or that Regulation as may be revised from time to time.”.
4 OJ No. L193, 1.7.2014, p.1
num: 22
paragraphs: Section 486C of the Principal Act is amended in subsection (2)(a) by substituting “31 December 2021” for “31 December 2018”.
num: 23
paragraphs: (1) Section 97 of the Principal Act is amended by substituting the following for subsection (2J):
“(2J) (a) Notwithstanding subsection (2), but subject to the other provisions of this section (including paragraphs (b) and (c) of this subsection), the deduction authorised by subsection (2)(e) shall not exceed—
(i) 75 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 7 April 2009 up to and including 31 December 2016,
(ii) 80 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2017 up to and including 31 December 2017, and
(iii) 85 per cent of the deduction that would, but for this subsection, be authorised by subsection (2)(e) in respect of interest accrued on or after 1 January 2018 up to and including 31 December 2018,
on borrowed money employed in the purchase, improvement or repair of a premises which, at the time the interest accrues, is a residential premises.
(b) For the purposes of paragraph (a)—
(i) borrowed money employed on the construction of a residential premises on land in which the person chargeable has an estate or interest shall, together with any borrowed money which that person employed in the acquisition of such land, be deemed to be borrowed money employed in the purchase of a residential premises,
(ii) where a premises consists in part of residential premises and in part of premises which are not residential premises, paragraph (a) shall apply to the interest accrued on the part of the borrowed money employed in the purchase, improvement or repair of the premises that is attributable, on a just and reasonable basis, to residential premises, and
(iii) the interest on borrowed money referred to in paragraph (a) shall be treated as accruing from day to day.
(c) This subsection shall not apply in respect of interest accrued on or after 1 January 2019.”.
(2) Subsection (1) shall come into operation on 1 January 2019.
num: 24
paragraphs: (1) Section 216A of the Principal Act is amended by inserting the following subsection after subsection (3B):
“(3C) (a) In this subsection, ‘relevant person’ means a person who is resident or ordinarily resident in the State and is incapacitated by reason of mental or physical infirmity.
(b) Subject to paragraph (c), subsection (2) shall not apply for a year of assessment to that part of the relevant sums arising to an individual in respect of the use by a person for the purposes of residential accommodation of a room or rooms in a qualifying residence where the person uses the room or rooms for a period which does not exceed 28 consecutive days.
(c) Paragraph (b) shall not apply where the person using the room or rooms concerned—
(i) is a relevant person,
(ii) uses the room or rooms for a minimum of 4 consecutive days per week for not less than 4 consecutive weeks, or
(iii) is receiving full-time or part-time instruction at a university, college, school or other educational establishment in the State.
(d) Where—
(i) the period for which a room or rooms in a qualifying residence is or are used by a person for the purposes of residential accommodation does not exceed 28 consecutive days, and
(ii) the individual to whom relevant sums have arisen in respect of that use claims that subparagraph (i), (ii) or (iii) of paragraph (c) applies,
the Revenue Commissioners may require the individual to provide proof supporting such claim.”.
(2) Subsection (1) applies for the year of assessment 2019 and each subsequent year of assessment.
num: 25
paragraphs: (1) The Principal Act is amended by substituting the following for Part 16:
“PART 16
Relief for Investment in Corporate Trades
Chapter 1
Interpretation (Part 16)
Interpretation
num: 488
paragraphs: (1) In this Part—
‘associate’ has the same meaning in relation to a person as it has by virtue of subsection (3) of section 433 in relation to a participator;
‘company’ means a body corporate;
‘compliance period’ means the pre-investment period and the relevant period;
‘control’ shall be construed in accordance with subsections (2) to (6) of section 432;
‘director’ shall be construed in accordance with section 433(4);
‘emoluments’ has the same meaning as in section 983;
‘General Block Exemption Regulation’ means Commission Regulation (EU) No. 651/2014 of 17 June 20145 ;
‘innovation’ means process innovation or organisational innovation;
‘market value’ shall be construed in accordance with section 548;
‘organisational innovation’ means the implementation of a new organisational method in an undertaking’s business practices, workplace organisation or external relations, other than—
(a) changes that are based on organisational methods already in use in the undertaking,
(b) changes in management strategy, mergers and acquisitions, or
(c) any of the following—
(i) ceasing to use a process,
(ii) simple capital replacement or extension,
(iii) changes resulting purely from changes in factor prices, customisation, localisation, regular, seasonal and other cyclical changes, or
(iv) trading of new or significantly improved products;
‘PPS Number’ has the meaning assigned to it in section 891B(1);
‘pre-investment period’, in relation to relief in respect of any eligible shares issued by a company, means the period beginning 2 years before the shares were issued, or if later, beginning on the date the first company in the RICT group was incorporated and ending immediately before the subscription for eligible shares;
‘process innovation’ means the implementation of a new or significantly improved production or delivery method (including significant changes in techniques, equipment or software), other than—
(a) minor changes or improvements,
(b) increases in production or service capabilities through the addition of manufacturing or logistical systems which are very similar to those already in use, or
(c) any of the following—
(i) ceasing to use a process,
(ii) simple capital replacement or extension,
(iii) changes resulting purely from changes in factor prices, customisation, localisation, regular, seasonal and other cyclical changes, or
(iv) trading of new or significantly improved products;
‘qualifying new venture’ means a venture consisting of relevant trading activities which are set up and commenced by a new company other than—
(a) activities which were previously carried on by another person and to which the company has succeeded, or
(b) a venture, the activities of which were previously carried on as part of another person’s trade or profession;
‘relevant period’, in relation to relief in respect of any eligible shares issued by a company, means the period beginning on the date on which the shares were issued and ending 4 years after that date;
‘relief’ means a deduction from total income granted under this Part, and includes relief granted on a share issue at any time after 6 April 1984 (and the foregoing reference to this Part includes this Part as it stood enacted at any time before the commencement of section 23 of the Finance Act 2018 or, as the case may be, the commencement of section 33 (1)(a) of the Finance Act 2011 ) and subsection (2) supplements this definition;
‘R&D+I’ means research and development activities (within the meaning of section 766) and innovation.
(2) In this Part a reference to relief under this Part is a reference to, as the case may be—
(a) relief as provided under this Part as it operates by virtue of section 502 or, where the context admits, as it operates by virtue of section 503 or, as appropriate, section 507, or
(b) relief as provided under all of those sections.
(3) References in this Part to a disposal of shares include references to a disposal of an interest or right in or over the shares, and an individual shall be treated for the purposes of this Part as disposing of any shares which the individual is treated by virtue of section 587 as exchanging for other shares.
(4) References in this Part to the reduction of any amount include references to its reduction to nil.
(5) A word or expression that is used in this Part and is also used in the General Block Exemption Regulation shall have the meaning in this Part that it has in that Regulation.
Chapter 2
Qualifying companies
Interpretation (Chapter 2)
num: 489
paragraphs: In this Part—
‘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 which is a contracting party to the EEA Agreement;
‘financial activities’ means the provision of, and all matters relating to the provision of, financing or refinancing facilities by any means which involves, or has an effect equivalent to, the extension of credit;
‘financial assets’ includes shares, gilts, bonds, foreign currencies and all kinds of futures, options and currency and interest rate swaps, and similar instruments, including commodity futures and commodity options, invoices and all types of receivables, obligations evidencing debt (including loans and deposits), leases and loan and lease portfolios, bills of exchange, acceptance credits and all other documents of title relating to the movement of goods, commercial paper, promissory notes and all other kinds of negotiable or transferable instruments;
‘financing or refinancing facilities’ includes—
(a) loans, mortgages, leasing, lease rental and hire-purchase, and all similar arrangements,
(b) equity or other investment,
(c) the factoring of debts and the discounting of bills, invoices and promissory notes, and all similar instruments, and
(d) the underwriting of debt instruments and all other kinds of financial securities;
‘linked businesses’ means two or more businesses that are regarded as linked enterprises, within the meaning of Annex 1 of the General Block Exemption Regulation;
‘partner businesses’ means two or more businesses that are regarded as partner enterprises, within the meaning of Annex 1 of the General Block Exemption Regulation;
‘qualifying subsidiary’, in relation to a company, means a subsidiary of that company of a kind which a company may have by virtue of section 492;
num: 26
paragraphs: (1) Section 481 of the Principal Act is amended—
(a) in subsection (1)—
(i) by inserting the following definitions—
“ ‘assisted region’ means an area specified in paragraph (1) of the Annex to the Commission Decision C(2014) 3153;
‘certificate’ means a certificate issued by the Minister under subsection (2);
‘eligible expenditure’ means the portion of the total cost of production of a qualifying film that is expended on the production of the film in the State—
(a) directly by the qualifying company concerned on the employment of eligible individuals, in so far as those individuals exercise their employment in the production of the film, and
(b) directly or indirectly by the qualifying company concerned, on the provision of certain goods, services and facilities,
as set out in regulations made under subsection (2E);
‘Rescuing & Restructuring Guidelines’ means the Communication of the Commission on Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty6 ;
‘total cost of production’, in relation to a qualifying company, means the qualifying expenditure, as determined in accordance with regulations made under subsection (2E), that was wholly, exclusively and necessarily incurred to produce the film;
‘undertaking’ means the relevant economic unit that would be regarded as an undertaking for the purposes of the Rescuing & Restructuring Guidelines;
‘undertaking in difficulty’ has the meaning assigned to it by the Rescuing & Restructuring Guidelines.”,
(ii) by deleting the definition of “authorised officer”,
(iii) in the definition of “film” by substituting “Minister under subsection (2)” for “Revenue Commissioners under subsection (2A), as specified in regulations made under subsection (2E)”,
(iv) in the definition of “film corporation tax credit” by substituting “qualifying film, subject to subsection (1B), means” for “qualifying film, means”,
(v) in the definition of “producer company”—
(I) by deleting “in relation to a film corporation tax credit specified in a film certificate,”,
(II) in paragraph (b) by deleting “commencing not later than the time the qualifying period commences,”,
(III) in paragraph (d) by deleting “and”,
(IV) in paragraph (e)—
(A) by deleting “, on or before the specified return date,”,
(B) by substituting “as the case may be, and” for “as the case may be,”,
and
(V) by inserting the following after paragraph (e):
“(f) is not part of an undertaking which would be regarded as an undertaking in difficulty;”,
(vi) in the definition of “qualifying film” by substituting “Minister has issued a certificate under subsection (2)” for “Revenue Commissioners have issued a certificate under subsection (2A), which has not been revoked under subsection (2D)”,
(vii) in the definition of “qualifying period”—
(I) by deleting “specified in a film certificate,”, and
(II) in paragraph (a) by substituting “the claim referred to in subsection (2G) was made” for “the application referred to in subsection (2A)(a) was made”,
and
(viii) in the definition of “specified relevant person” by substituting “date referred to in subsection (2C)(d).” for “date the compliance report referred to in subparagraph (iii) of subsection (2C)(d)(iii) is provided to the Revenue Commissioners;”,
(b) by inserting the following after subsection (1)—
“(1A) (a) Subject to the provisions of this section, a producer company, that is not an undertaking in difficulty, may make an application to the Minister, in relation to a film to be produced by the company, for the issue by the Minister of a certificate stating that the film is to be treated as a qualifying film for the purpose of this section.
(b) An application for a certificate under paragraph (a) shall be in the form approved by the Minister and shall contain such information as may be specified in regulations made under subsection (2E).
(1B) (a) (i) Where the production of a qualifying film will take place in an assisted region, the producer company, in making its application under subsection (1A) on or after 1 January 2019, may apply for the certificate mentioned in that subsection to specify, in addition to that mentioned in that subsection, that an increased film corporation tax credit (in this section referred to as ‘the regional film development uplift’) shall apply as provided for in paragraph (b).
(ii) In considering whether, in the certification applied for, he or she should specify that the regional film development uplift shall apply, the Minister, in accordance with regulations made under subsection (2E), shall have regard to the following criteria:
(I) whether the production of the film will substantially be undertaken in an assisted region;
(II) whether there is limited availability of individuals with suitable experience or training who habitually reside within a 45 kilometre radius of the place of production to provide services, amounts expended upon which would form part of the eligible expenditure on the qualifying film; and
(III) in respect of the areas of expertise where there is limited availability, whether the company will provide training for individuals that habitually reside within that 45 kilometre radius.
(b) Where the certificate issued specifies that the regional film development uplift is to apply, the percentage specified in the definition of ‘film corporation tax credit’ shall be—
(i) as respects claims made on or before 31 December 2020, 37 per cent,
(ii) as respects claims made after 31 December 2020 but on or before 31 December 2021, 35 per cent,
(iii) as respects claims made after 31 December 2021 but on or before 31 December 2022, 34 per cent, or
(iv) as respects claims made after 31 December 2022, 32 per cent,
and, for the purposes of this paragraph, a reference to a claim is a reference to the first claim that a producer company makes in respect of a qualifying film under subsection (2G).”,
(c) in subsection (2)—
(i) by substituting the following for paragraph (a):
“(a) The Minister may, following an application by a producer company under subsection (1A), subject to paragraph (b) and in accordance with regulations made under subsection (2E), issue a certificate to the producer company—
(i) stating that the film is to be treated as a qualifying film for the purpose of this section, and
(ii) specifying whether or not the regional film development uplift applies, if appropriate.”,
and
(ii) in paragraph (b)—
(I) by substituting “issue the certificate” for “give the authorisation”,
(II) by substituting the following for subparagraph (i):
“(i) the categories of films eligible for certification under this section, as specified in those regulations,”,
(III) by inserting the following after subparagraph (ii):
“(iii) the timing of the application by reference to the commencement of production in the State, and
(iv) the criteria specified in subsection (1B)(a)(ii) if appropriate,”,
(IV) by substituting “a certificate is issued” for “such authorisation is given”,
(V) by substituting “the certificate such conditions” for “the authorisation such conditions”,
(VI) in clause (II)(B) by substituting “production of that film,” for “production of that film.”,
and
(VII) by inserting the following after clause (II):
“(III) the nature and detail of acknowledgement in the opening titles or closing credits of the film, and
(IV) in respect of the Communication from the Commission (2013/C 332/01)7
(A) the maximum aid intensity, and
(B) whether the film may be regarded as a difficult audiovisual work.
(c) Nothing in this section shall be construed as obliging the Minister to issue a certificate.
(d) The Minister may amend or revoke any condition (including a condition added by virtue of this paragraph) specified in the certificate, or add to such conditions, by giving notice in writing to the producer company concerned of the amendment, revocation or addition, and this section shall apply as if—
(i) a condition so amended or added by the notice was specified in the certificate, and
(ii) a condition so revoked was not specified in the certificate.”,
(d) in subsection (2A)—
(i) by deleting paragraph (a),
(ii) in paragraph (b)—
(I) by substituting—
“A producer company shall not make a claim for the film corporation tax credit under subsection (2G) if—
(i) there has not been issued to the producer company a certificate by the Minister in respect of that film,”
for
“The Revenue Commissioners shall not issue a certificate under paragraph (a) if—
(i) they have not been given authorisation to do so by the Minister under subsection (2)(a),”,
(II) in subparagraph (iii) by substituting “€125,000,” for “€125,000, or”,
(III) in subparagraph (iv) by substituting “€250,000,” for “€250,000.”,
(IV) by inserting the following after subparagraph (iv):
“(v) it is an undertaking in difficulty,
(vi) any company in an undertaking of which the producer company is part is subject to an outstanding recovery order following a previous decision of the Commission that declared an aid illegal and incompatible with the internal market, or
(vii) in relation to a claim under subsection (2G)(b)(i)—
(I) the agreements pursuant to which the financing of the film will be made available have not been executed, or the conditions that are required to be satisfied in those agreements for funding to commence have not been fulfilled, and
(II) an amount not less than 68 per cent of the amount on which the film corporation tax credit is based has not been lodged to an account held by the qualifying company with a financial institution on terms whereby such amount is to be expended by the qualifying company on the production of the film,
but neither clause (I) nor (II) shall apply where such other confirmations of financing, as set out in regulations under subsection (2E) and specified by those regulations to be acceptable for this purpose, are available.”,
(iii) by deleting paragraphs (c) to (e),
(iv) by substituting the following for paragraph (f):
“(f) A producer company shall not make a claim under subsection (2G) if it would be reasonable to consider that—
(i) in respect of a claim under subsection (2G)(b)(i), the budget or any particular item of proposed expenditure in the budget is inflated, or
(ii) (I) there is no commercial rationale for the corporate structure—
(A) for the production, financing, distribution or sale of the film, or
(B) for all of those purposes,
or
(II) the corporate structure would hinder the Revenue Commissioners in verifying compliance with any of the provisions governing the relief.”,
(v) by deleting paragraph (g) and (h), and
(vi) by inserting the following after paragraph (h):
“(i) Before making a claim a producer company shall have such information and records as the Revenue Commissioners may reasonably require for the purposes of determining whether that claim complies with this section.”,
(e) in subsection (2B)—
(i) in paragraph (a) by substituting “them,” for “them, and”,
(ii) in paragraph (b) by substituting “consultation, and” for “consultation.”, and
(iii) by inserting the following after paragraph (b):
“(c) where they have reason to believe that financial arrangements have been entered into in contravention of subsection (2C)(b), the Revenue Commissioners may seek any information they consider appropriate in relation to the arrangements or in relation to any person who is, directly or indirectly, a party to the arrangements.”,
(f) in subsection (2C)—
(i) by substituting “producer company in respect of a qualifying film for the purposes of this section” for “producer company for the purposes of this section”,
(ii) by deleting paragraph (a),
(iii) in paragraph (b)—
(I) by deleting “subject to subsection (2CA),”, and
(II) by inserting the following after subparagraph (ii):
“other than where those arrangements—
(A) relate to the filming of part of the qualifying film in a territory other than a territory referred to in clause (I) or (II) of subparagraph (i),
(B) the producer company has sufficient records to enable the Revenue Commissioners to verify, in the case of filming in such a territory, the amount of each item of expenditure on the production of the qualifying film expended in the territory, whether expended by the producer company or by any other person, and
(C) the producer company has such records in place to substantiate such expenditure in advance of making a claim under subsection (2G).”,
(iv) in paragraph (c) by substituting “without prejudice to the generality of section 886, unless the company provides, when requested to do so by the Revenue Commissioners, for the purposes of verifying compliance with the provisions governing the relief or with any condition specified in a certificate issued by the Minister under subsection (2),” for “unless the company provides, when requested to do so by the Revenue Commissioners, for the purposes of verifying compliance with the provisions governing the relief or with any condition specified in a certificate issued by them under subsection (2A)(a),”,
(v) by inserting the following after paragraph (c):
“(ca) unless the company provides, when requested to do so by the Revenue Commissioners, for the purposes of verifying compliance with the provisions governing the relief or with any condition specified in a certificate issued by the Minister under subsection (2) a copy of the film in such format and manner required under paragraph (d)(ii).”,
(vi) in paragraph (d) by substituting the following for subparagraphs (i) to (iii):
“(i) notifies the Minister in writing of the date of completion of the production of the qualifying film, and
(ii) provides to the Minister such number of copies of the film in such format and manner as may be specified in those regulations.”,
(vii) by inserting the following after paragraph (d):
“(da) makes a claim under subsection (2G)(b)(ii), within the time referred to in paragraph (d), and has available, prior to making that claim, a compliance report, in such format and manner specified in those regulations, which provides proof that—
(i) the provisions of this section in so far as they apply in relation to the company and a qualifying company have been met, and
(ii) any conditions attaching to the certificate issued to the company in relation to a qualifying film have been fulfilled,”,
(viii) in paragraph (e) by substituting “date referred to in paragraph (d)” for “date the compliance report referred to in subsection (2C)(d)(iii) is provided to the Revenue Commissioners”,
(ix) in paragraph (f) by substituting “date referred to in paragraph (d), and” for “date the compliance report referred to in subsection (2C)(d)(iii) is provided to the Revenue Commissioners”,
(x) in paragraph (g)(ii) by substituting “qualifying company.” for “qualifying company, and”, and
(xi) by deleting paragraph (h),
(g) by deleting subsections (2CA) and (2D),
(h) in subsection (2E)—
(i) by substituting “the issue of a certificate under subsection (2)” for “the issue of an authorisation under subsection (2)”,
(ii) in paragraph (a) by substituting “, the timing of such an application” for “pursuant to subsection (2A)”,
(iii) in paragraph (b) by deleting “by the Revenue Commissioners under subsection (2A)”,
(iv) by deleting paragraph (c),
(v) in paragraph (f) by substituting “Minister” for “Revenue Commissioners”,
(vi) in paragraph (g) by deleting “the Revenue Commissioners and to”,
(vii) by substituting the following for paragraph (h):
“(h) specifying the form and content of the compliance report that must be available in accordance with subsection (2C)(d)(iii), the manner in which such report shall be made and verified, and the documents to accompany the report,”,
(viii) in paragraph (i) by substituting “treated as qualifying or eligible” for “accepted by the Revenue Commissioners as”,
(ix) in paragraph (j) by substituting “in the definition of eligible expenditure” for “in subsection (2A)(g)(iv)(II)”,
(x) in paragraph (l)—
(I) by substituting “subsection (2)(b)” for “subsections (2)(b)(i) and (ii)”,
(II) in subparagraph (i) by substituting “issue a certificate” for “give authorisation to the Revenue Commissioners”,
(III) in subparagraph (ii) by substituting “certificate” for “authorisation”, and
(IV) by substituting “Minister” for “Revenue Commissioners under subsection (2A)”,
(xi) by inserting the following after paragraph (l):
“(la) specifying the criteria to be considered by the Minister, in relation to the matters referred to in subsection (1B)(a)(ii)—
(i) in deciding whether, in the certificate applied for under subsection (1A), he or she should specify that the regional film development uplift shall apply, and
(ii) in specifying conditions in such a certificate, as provided for in subsection (2)(b),
and the information required for those purposes to be included in the application made to the Minister by a producer company,”,
(xii) in paragraph (m)—
(I) by deleting “the approval of”, and
(II) by substituting “subsection (2C)(b)” for “subsection (2CA)”,
(xiii) by inserting the following after paragraph (m):
“(ma) specifying the confirmations of financing that are acceptable for the purpose of subsection (2A)(b)(vii),”,
(xiv) in paragraph (n) by deleting “, as referred to in subsection (2A)(g)(iv),”,
(xv) by substituting the following for paragraph (o):
“(o) governing the payment of the specified amount by the Revenue Commissioners to the producer company.”,
(i) by deleting subsection (2F),
(j) by inserting the following after subsection (2F):
“(2G) (a) In this section the ‘budgeted film corporation tax credit’ means the amount of the film corporation tax credit that would be payable if the amounts set out in the budget in respect of a qualifying film to be produced were incurred on the production of that qualifying film.
(b) Where the Minister has issued a certificate in relation to a qualifying film to a producer company and the provisions of this section have been complied with, a producer company may make a claim—
(i) in advance of the date referred to in subsection (2C)(d), for an amount not exceeding 90 per cent, or such lower amount as set out in regulations under subsection (2E), of the budgeted film corporation tax credit, or
(ii) in any other case, for the film corporation tax credit, less any amount already claimed pursuant to subparagraph (i).
(c) A claim under paragraph (b) shall be made in the return required under Part 41A, the specified return date of which immediately precedes the making of the claim.”,
(k) in subsection (3)—
(i) by substituting the following for paragraph (a):
“(a) Where a producer company makes a claim under subsection (2G), the corporation tax of the company, for the qualifying period, shall be reduced by so much of an amount equal to the film corporation tax credit as does not exceed that corporation tax and where the qualifying period is a period referred to in paragraph (b) of the definition of ‘qualifying period’, the corporation tax of an earlier accounting period shall be reduced in priority to the corporation tax of a later accounting period.”,
(ii) in paragraph (b) by substituting “a producer company has made a claim under subsection (2G)” for “the Revenue Commissioners have specified a film corporation tax credit in a film certificate”, and
(iii) by deleting paragraph (c),
(l) in subsection (3A)—
(i) in paragraph (d)—
(I) by substituting “the amount was claimed under subsection (2G) or paid” for “the amount was paid”,
(II) by substituting the following for subparagraph (i):
“(i) the company made a claim contrary to subsection (2G),”,
(III) in subparagraph (ii)—
(A) in clause (II) by substituting “certificate” for “film certificate” in both places where it occurs, and
(B) in clause (III) by substituting “subsection (2A)(b)(ii),” for “subsection (2A)(b)(ii).”,
and
(IV) by inserting the following after subparagraph (ii):
“or
(iii) where a claim is made under subsection (2G)(b)(i) and—
(I) there has occurred a reduction in the expenditure, from the amount as stood budgeted, in respect of the qualifying film and the extent of that reduction is such that the amount claimed is in excess of 90 per cent of the revised budgeted film corporation tax credit (that is to say, that tax credit as it stands revised in consequence of that reduction), or
(II) where an amount equal to the budgeted eligible expenditure upon which a claim was based is not expended by the qualifying company wholly and exclusively on the production of the qualifying film without unreasonable delay.”,
and
(ii) in paragraph (e) by substituting “an assessment is made or amended” for “an inspector makes an assessment”,
(m) in subsection (3C) by substituting “a certificate issued after 31 December 2024” for “a film certificate issued after 31 December 2020”,
(n) by deleting subsection (22A), and
(o) by inserting the following after subsection (23):
“(24) (a) This subsection applies to a qualifying film in respect of which the Minister provided the Revenue Commissioners with authorisation under subsection (2), as it stood enacted prior to the commencement of section 26 of the Finance Act 2018.
(b) This section (that is to say, this section as it stands amended by section 26 of the Finance Act 2018) shall apply to a qualifying film to which this subsection applies as if the foregoing authorisation were a certificate issued by the Minister to the producer company under subsection (2) on the date the authorisation was issued.
(25) (a) This subsection applies to a qualifying film in respect of which the Revenue Commissioners had issued a certificate under subsection (2A), as it stood enacted prior to the commencement of section 26 of the Finance Act 2018, but the compliance report required under subsection (2C)(d)(iii), as it stood enacted prior to the commencement of that section 26 , has not been provided to the Revenue Commissioners.
(b) This section (that is to say, this section as it stands amended by section 26 of the Finance Act 2018) shall apply to any claim for relief made in respect of a qualifying film to which this subsection applies, and no regard shall be had to the foregoing certificate.
(26) (a) This subsection applies to a payment made by the Revenue Commissioners under subsection (3)(b), as it stood enacted prior to the commencement of section 26 of the Finance Act 2018, but where the compliance report required under subsection (2C)(d)(iii), as it stood enacted prior to the commencement of that section 26 , has not been provided to the Revenue Commissioners.
(b) Any amount, to which this subsection applies, paid to a producer company shall be treated as an amount paid on a claim made under subsection (2G)(b)(i) on 1 January 2019.
(27) (a) This subsection applies to financial arrangements which were approved by the Revenue Commissioners under subsection (2CA), as it stood enacted prior to the commencement of section 26 of the Finance Act 2018.
(b) Notwithstanding any such approval, a company shall not be a producer company if the financial arrangements to which this subsection applies contravene subsection (2C)(b).”.
(2) Section 851A of the Principal Act is amended by inserting the following subsection after subsection (8A):
“(8B) In relation to information provided to the Minister for Culture, Heritage and the Gaeltacht by a company for the purposes of obtaining a certificate under section 481, the Department of Culture, Heritage and the Gaeltacht, in processing such information, shall, for the purposes of this section, be deemed to be engaged as a service provider with respect to the administration of section 481.”.
(3) Subsections (1) and (2) shall come 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.
6 OJ No. C249, 31.7.2014, p. 1
7 OJ No. C332, 15. 11. 2013, p. 1
num: 27
paragraphs: (1) The Principal Act is amended by inserting the following Part after Part 35A:
“PART 35B
Implementation of Articles 7 and 8 of Council Directive (EU) 2016/1164 of 12 July 2016 (Controlled Foreign Companies)
Chapter 1
Interpretation
Interpretation
835I. (1) In this Part—
‘accounting profit’, in relation to an accounting period of a controlled foreign company, means the amount of profit, before taxation, shown in the profit and loss account, without regard to any—
(a) capital gains or capital losses, or
(b) dividends or other distributions which would be exempted from the charge to tax in determining the controlled foreign company’s corresponding chargeable profits in the State;
‘amount of foreign tax’ means the amount of any tax paid or borne by a controlled foreign company in respect of the controlled foreign company’s profits for the accounting period;
‘arrangement’ means—
(a) any transaction, action, course of action, course of conduct, scheme, plan or proposal,
(b) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable or intended to be enforceable by legal proceedings, and
(c) any series of or combination of the circumstances referred to in paragraphs (a) and (b),
whether entered into or arranged by one or two or more persons—
(i) whether acting in concert or not,
(ii) whether or not entered into or arranged wholly or partly outside the State, or
(iii) whether or not entered into or arranged as part of a larger arrangement or in conjunction with any other arrangement or arrangements,
but does not include an arrangement referred to in section 826;
‘chargeable company’ means a controlling company, or a company connected with the controlling company, which performs, either itself or through a branch or agency, relevant Irish activities on behalf of a controlled foreign company group;
‘chargeable income’ means the undistributed income of a controlled foreign company which is subject to a controlled foreign company charge;
‘company’ means a body corporate or an unincorporated association;
‘connected’ shall be construed in accordance with section 10;
‘controlled foreign company’ means a company which is—
(a) not resident in the State, and
(b) controlled by a company or companies resident in the State;
‘controlled foreign company charge’ means a charge made under section 835R(2);
‘controlled foreign company group’ means the controlled foreign companies, taken together, of a controlling company;
‘controlling company’ means a company resident in the State which controls a controlled foreign company;
‘corresponding chargeable profits in the State’ means those profits or gains of a controlled foreign company which would be the controlled foreign company’s profits or gains for corporation tax or capital gains tax purposes for an accounting period if the assumptions specified in section 835O were to apply to that company;
‘corresponding corporation tax in the State’ means the amount of corporation tax and capital gains tax which would be chargeable in the State in respect of the controlled foreign company’s corresponding chargeable profits in the State for the accounting period in accordance with section 835P if the assumptions specified in section 835O were to apply to the company;
‘creditable tax’ shall be construed in accordance with section 835S;
‘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;
‘foreign chargeable profits’ means—
(a) the profits of a controlled foreign company as determined for tax purposes under the laws of the controlled foreign company’s territory of residence, or
(b) where the laws of the controlled foreign company’s territory of residence do not require profits to be determined for tax purposes, the profits of the controlled foreign company as determined in accordance with the generally accepted accounting practice applicable in the controlled foreign company’s territory of residence;
‘foreign company charge’ means a charge under the laws of a territory, other than the State, which is similar to the controlled foreign company charge;
‘key entrepreneurial risk-taking function’ shall be construed in a manner consistent with the use of that term in the OECD Report;
num: 28
paragraphs: (1) Section 291A of the Principal Act is amended—
(a) in subsection (6)(a) by substituting “paragraphs (b), (ba) and (c)” for “paragraphs (b) and (c)”,
(b) in subsection (6)(b)—
(i) by substituting “paragraph (a) and, where applicable, paragraph (ba)” for “paragraph (a)” where it first occurs in each of subparagraphs (i) and (ii), and
(ii) by substituting “paragraphs (a) and (ba)” for “paragraph (a)” in each other place where it occurs in each of subparagraphs (i) and (ii),
and
(c) by inserting the following after paragraph (b) of subsection (6):
“(ba) Where the relevant trade (referred to in paragraph (a)) carried on by the company for an accounting period comprises relevant activities relating to a specified intangible asset or specified intangible assets the capital expenditure on which asset or assets includes—
(i) capital expenditure incurred by the company before 11 October 2017 (referred to in this paragraph as ‘the earlier period’), and
(ii) capital expenditure incurred by the company on or after 11 October 2017 (referred to in this paragraph as ‘the later period’),
then, the trading income from the relevant trade for the accounting period shall, for the purposes of paragraphs (a) and (b), be deemed to consist of two separate income streams, the first income stream consisting of so much of the trading income from the relevant trade for the accounting period as relates to capital expenditure incurred in the earlier period (referred to in this paragraph and the following paragraph as the ‘first income stream’), and the second income stream consisting of so much of the trading income from the relevant trade for the accounting period as relates to capital expenditure incurred in the later period (referred to in this paragraph and the following paragraph as the ‘second income stream’). The amount of income to be attributed to each separate income stream shall be determined in accordance with paragraph (bb)(i), and paragraph (a) shall apply with any necessary modifications such that—
(I) the aggregate of the amounts referred to in subparagraphs (i) and (ii) of paragraph (a) which relate to capital expenditure incurred in the earlier period shall not exceed the amount of the first income stream, and
(II) the aggregate of the amounts referred to in subparagraphs (i) and (ii) of paragraph (a) which relate to capital expenditure incurred in the later period shall not exceed 80 per cent of the amount of the second income stream.
(bb) (i) For the purposes of paragraph (ba) the trading income from the relevant trade for the accounting period shall, as necessary, be apportioned between the first income stream and the second income stream on a just and reasonable basis, and any amount to be attributed to the first income stream shall not exceed an arm’s length amount.
(ii) The company shall maintain and have available such records as may reasonably be required for the purposes of determining whether any such apportionment referred to in subparagraph (i) is made on a just and reasonable basis and whether any amount attributed to the first income stream exceeds an arm’s length amount.”.
(2) This section shall be deemed to have applied in respect of capital expenditure incurred by a company on or after 11 October 2017.
num: 29
paragraphs: Section 579B of the Principal Act is amended by inserting the following after subsection (8):
“(9) The trustees to whom this section applies may elect to pay capital gains tax in 6 equal instalments at yearly intervals, the first instalment of which shall be due and payable on 31 October in the year following the year in which there is deemed to have occurred, by virtue of subsection (3), the disposal and reacquisition by them of the defined assets, and the remaining 5 instalments shall be due and payable respectively on 31 October in each of the years following the year in which the first instalment became due and payable.”.
num: 30
paragraphs: (1) Section 603A of the Principal Act is amended by inserting the following after subsection (5):
“(6) The reference in subsection (2)(a) to a ‘child of the parent’ and the references in subsections (2)(b), (3), (4) and (5) to ‘child’ shall be deemed to include the spouse or civil partner of the child concerned.”.
(2) This section applies to disposals made on or after 1 January 2019.
num: 31
paragraphs: (1) Section 604B of the Principal Act is amended by inserting the following after subsection (3B):
“(3C) (a) Where the information required, by subsection (3A), to be furnished by an individual to the Revenue Commissioners relates to matters all of which have (or as the case may be, the last of which has) occurred at any time falling within the period commencing on 1 July 2016 and ending on 31 December 2018, then that information shall be so furnished at the same time as the return which is required to be prepared and delivered by the individual in accordance with Chapter 3 of Part 41A for the year 2018 is so prepared and delivered.
(b) Where the information required, by subsection (3A), to be furnished by an individual to the Revenue Commissioners relates to matters all of which have (or as the case may be, the last of which has) occurred at any time falling within the year 2019 or a subsequent year, then that information shall be so furnished at the same time as the return which is required to be prepared and delivered by the individual in accordance with Chapter 3 of Part 41A for the year concerned is so prepared and delivered.”.
(2) Subsections (3A) and (3B) and subsection (3C)(a) (inserted by subsection (1)) of section 604B of the Principal Act shall be deemed to have applied in any case where the entitlement to relief under subsection (2) or (3) of that section arose on or after 1 July 2016.
num: 32
paragraphs: The Principal Act is amended, with effect from 10 October 2018, by substituting the following for Chapter 2 of Part 20:
“Chapter 2
Provisions relating to exit tax, etc.
Charge to exit tax
num: 627
paragraphs: (1) (a) In this section and in sections 628 and 629:
‘designated area’, ‘exploration or exploitation activities’ and ‘exploration or exploitation rights’ have the same meanings respectively as in section 13;
‘Directive’ means Council Directive (EU) 2016/1164 of 12 July 20168 laying down rules against tax avoidance practices that directly affect the functioning of the internal market;
‘exploration or exploitation assets’ means assets used or intended for use in connection with exploration or exploitation activities carried on in the State or in a designated area;
‘market value’ means the amount for which an asset can be exchanged or mutual obligations can be settled between unconnected willing buyers and sellers in a direct transaction;
‘relevant event’ means one of the events referred to in subsection (2);
‘tax’ means corporation tax or capital gains tax chargeable by virtue of subsection (2);
‘the new assets’ and ‘the old assets’ have the meanings respectively assigned to them by section 597;
‘third country’ means a territory other than the State or another Member State;
‘transfer’, in relation to assets, means any transaction whereby (apart from the effect of this section) no liability to corporation tax or capital gains tax in respect of the assets, the subject of the transfer, arises, notwithstanding that those assets remain under the legal or economic ownership of the same entity.
(b) For the purposes of subsection (2), paragraph (c) of section 29(3) shall apply as if the reference in that paragraph to a trade were to a business and as if the references to a branch or agency were to a permanent establishment.
(c) A word or expression that is used in this Chapter and is also used in Article 5 of the Directive shall have the meaning in this Chapter that it has in that Article.
(2) For the purposes of the Capital Gains Tax Acts, a company shall be deemed to have disposed of the assets referred to in paragraph (a) or, as the case may be, (b) or, in the case of paragraph (c), to have disposed of all its assets (other than assets excepted from that paragraph by subsection (6)) and to have immediately reacquired the assets at their market value (at the time of the occurrence of the event concerned) on the occurrence of any of the following events:
(a) the company, being a company that is resident in a Member State (other than the State), transfers assets from a permanent establishment in the State to its head office or to a permanent establishment in another Member State or in a third country;
(b) the company, being a company that is resident in a Member State (other than the State), transfers a business (including the assets of the business) carried on by a permanent establishment of that company in the State to another Member State or to a third country; or
(c) the company ceases to be resident in the State and becomes resident in another Member State or in a third country.
(3) (a) In this subsection ‘relevant assets’ has the same meaning as in section 29(1A)(a).
(b) Subsection (2) shall not apply to—
(i) relevant assets or shares deriving their value or the greater part of their value directly or indirectly from relevant assets (other than shares quoted on a stock exchange), or
(ii) assets referred to in section 29(3)(d).
(c) Section 29(1A)(c) shall apply in calculating the portion of the value of shares attributable directly or indirectly to relevant assets.
(d) This subsection shall be construed as being in addition to the provision, with respect to the interpretation of this section, made by virtue of the definition of ‘transfer’ in subsection (1) and, in particular, the words contained therein concerning non-liability to corporation tax and capital gains tax.
(4) (a) Tax shall, notwithstanding subsection (3) of section 28, be chargeable at the rate of 12. 5 per cent in respect of chargeable gains accruing on a disposal of assets to which subsection (2) applies (in paragraph (b) referred to as a ‘deemed disposal of an asset’), but this is subject to paragraph (b).
(b) A chargeable gain accruing on a deemed disposal of an asset arising from the occurrence of an event referred to in subsection (2) shall be chargeable at the rate specified in subsection (3) of section 28 where the event forms part of a transaction to dispose of the asset and the purpose of the transaction is to ensure the chargeable gain accruing on the disposal of the asset is charged to tax at the rate specified in paragraph (a) rather than the rate specified in subsection (3) of section 28.
(c) In this subsection ‘transaction’ has the meaning assigned to it by section 811C.
(5) Section 597 shall not apply where a company referred to in subsection (2)(c)—
(a) has disposed of the old assets, or of its interest in those assets, before the event referred to in subsection (2)(c), and
(b) acquires the new assets, or its interest in those assets, after that event,
unless the new assets are excepted from this subsection by subsection (6).
(6) Where at any time after the event referred to in paragraph (c) of subsection (2) the company referred to in that paragraph carries on a trade in the State through a permanent establishment—
(a) any assets which, immediately after the event referred to in subsection (2)(c), are situated in the State and are used in or for the purposes of the trade, or are used or held for the purposes of the permanent establishment, shall be excepted from subsection (2), and
(b) any new assets which, after that time, are so situated and are so used or so held shall be excepted from subsection (5),
and references in this subsection to assets situated in the State include references to exploration or exploitation assets and to exploration or exploitation rights.
(7) This section shall not apply to an asset—
(a) which relates to the financing of securities,
(b) which is given as security for a debt, or
(c) where the transfer takes place in order to meet prudential capital requirements or for liquidity purposes,
where the asset is due to revert to the permanent establishment or the company, as the case may be, within 12 months of the transfer.
Value of certain assets to be accepted for purposes of Capital Gains Tax Acts
num: 628
paragraphs: Where exit tax is charged in a Member State (other than the State) in respect of an asset by virtue of Article 5(1) of the Directive, the value of that asset established under the law of that Member State for the purposes of that charge to tax shall be taken, for the purposes of the Capital Gains Tax Acts, as the acquisition cost of that asset unless that value does not reflect its market value.
Deferral of exit tax
num: 629
paragraphs: (1) In this section—
‘2010 Directive’ means Council Directive 2010/24/EU of 16 March 20109 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures;
‘chargeable period’ means a year of assessment or an accounting period, as the case may be;
‘disposal of assets’ means a disposal of migrated assets;
‘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;
‘electronic means’ has the meaning assigned to it in section 917EA;
‘migrated assets’ means the assets the chargeable gain on the deemed disposal of which was taken into account in determining the amount of tax;
‘migration date’ means the date on which a disposal is deemed to have been made by virtue of section 627(2);
‘relevant period’, in respect of which a statement under paragraph (b) of subsection (5) is to be made, is the calendar year immediately preceding the 21-day period in which the statement is to be made, except that in respect of the first statement of the 5 statements referred to in that subsection, such period shall be the period commencing on the migration date and ending on the last day before the beginning of the calendar year in respect of which the next statement is to be made;
‘relevant territory’ means a Member State (other than the State) or a third country which is a party to the EEA Agreement that has concluded an agreement with the State or the European Union equivalent to the mutual assistance provided for in the 2010 Directive;
‘specified date’ means—
(a) in relation to corporation tax, the last day of the period of 9 months starting on the day immediately following the relevant event, but in any event not later than day 23 of the month in which that period of 9 months ends, or
(b) in relation to capital gains tax payable in respect of a year of assessment in which the relevant event occurs, 31 October in the tax year following that year.
(2) Subject to the provisions of this section, a company which is chargeable to tax may elect to pay that tax in 6 equal instalments at yearly intervals, the first instalment of which shall be due and payable on the specified date, and the remaining instalments shall be due and payable respectively on each of the next 5 anniversaries of the specified date.
(3) Subsection (2) shall not apply to assets referred to in section 627(2) which have been transferred to a third country unless that country is a party to the EEA Agreement and has concluded an agreement with the State or the European Union equivalent to the mutual assistance provided for in the 2010 Directive.
(4) Where an election is made to pay tax in accordance with subsection (2), that tax shall be payable in 6 equal instalments at yearly intervals in accordance with that subsection.
(5) (a) An election under subsection (2) shall:
(i) be made in the return under section 959I—
(I) where the tax is corporation tax, for the accounting period which ends on the migration date for the company, or
(II) where the tax is capital gains tax, for the year of assessment in which the migration date for the company occurs,
and that return shall be made by electronic means (in accordance with Chapter 6 of Part 38);
(ii) specify—
(I) the migration date,
(II) the relevant territory to which the migrated assets were transferred,
(III) the amount of tax, and
(IV) that an election is being made to pay tax in accordance with section 629 (2) of the Taxes Consolidation Act 1997 ;
and
(iii) provide such other information as may be required by the Revenue Commissioners for the purposes of this section.
(b) Where an election is made to pay tax in accordance with subsection (2), the company concerned shall within 21 days of the end of each of the 5 calendar years which follow the year in which the migration date occurs deliver to the Revenue Commissioners a statement, notwithstanding that the company has not received a notice to prepare and deliver such a statement, by such electronic means and in such form and format as the Revenue Commissioners may specify, in respect of the relevant period, for the purposes of tax—
(i) specifying whether the company is treated under the laws of a relevant territory as resident for the purposes of income tax or corporation tax (or any tax imposed in that territory which corresponds to income tax or corporation tax) in that territory throughout that relevant period, and
(ii) providing such other information as may be required by the Revenue Commissioners for the purposes of this section.
(6) Notwithstanding subsections (2) and (4), if, with respect to the company referred to in section 627(2), any of the events specified in subsection (7) occurs, then any amount of tax which has not been paid at the time of the event, and any interest charged on that amount in accordance with subsection (9), shall become due and payable on the occurrence of that event.
(7) Each of the following is an event referred to in subsection (6):
(a) the assets referred to in section 627(2) are sold or otherwise disposed of;
(b) the assets referred to in section 627(2) are transferred to a third country, but this is subject to subsection (8);
(c) the company ceases to be resident in a Member State and becomes resident in a third country or the business carried on by a permanent establishment of the company is transferred to a third country, but this is subject to subsection (8);
(d) the company becomes insolvent or a liquidator is appointed to the company; or
(e) the company fails to pay the instalments referred to in subsection (2) on the due date and this failure has not been rectified within 12 months of that date.
(8) A reference in subsection (7)(b) or (c) to a third country does not include a reference to a third country that is a party to the EEA Agreement if it has concluded an agreement with the State or the European Union equivalent to the mutual assistance provided for in the 2010 Directive.
(9) (a) Where tax becomes due and payable at any time under this section, simple interest shall be payable on the amount of that tax and shall be calculated, from the specified date until the date of payment, for any day or part of a day during which the amount of tax remains unpaid, at the prevailing rate specified in the Table to subsection (2)(c)(ii) of section 1080, and such interest shall be due and payable when the tax concerned is due and payable.
(b) Interest charged on tax shall be added to each of the instalments referred to in subsection (2) and shall be paid at the same time as such instalment is due.
(10) The Revenue Commissioners may, where it appears to them that the deferral of tax would otherwise present a serious risk to collection of that tax, require a company which has made an election under subsection (2) to give security, or further security, of such amounts and in such form and manner as they may determine, for the payment of tax, within 30 days from the date of service on the company of a notice in writing.
(11) Subsection (10) shall not apply to a company to which section 629A applies.
(12) All amounts of tax and interest shall be paid to the Collector-General.
(13) Any amount of tax and interest payable in accordance with this section shall be payable without the making of an assessment.
(14) (a) The Collector-General may, at any time before the end of the period beginning with the date on which tax was due and payable by reference to this section and ending 3 years after the time when a statement under subsection (5)(b), specifying the amount of that tax, is made and delivered to the Collector-General, serve on—
(i) a company which is or, during the period of 12 months ending with the date when tax became due and payable, was a member of the same group (within the meaning of section 629A(1)) as a company to which section 627(2) applies, or
(ii) a person who is, or during the period mentioned in subparagraph (i) was, a controlling director (within the meaning of section 629A(1)) of a company to which section 627(2) applies,
a notice—
(I) stating the amount which remains unpaid of the tax payable and the date on which the tax became due and payable, and
(II) requiring the company referred to in subparagraph (i) or the person referred to in subparagraph (ii), as the case may be, to pay that amount within 30 days of service of the notice,
and, in the event of the serving of such notice, the amount referred to in subparagraph (I) shall be so payable by the company or person concerned, as the case may be.
(b) Any amount which a person is required to pay by a notice under this subsection may be recovered from the person as if it were tax due by such person, and such person may recover any such amount paid on foot of a notice under this section from the company concerned.
(c) A payment in pursuance of a notice under this subsection shall not be allowed as a deduction in computing income, profits or losses for any tax purposes.
(15) Without prejudice to the provisions of this section, the provisions of the Corporation Tax Acts and the Capital Gains Tax Acts, as appropriate, relating to the collection and recovery of corporation tax, capital gains tax, and interest, shall apply, with any necessary modifications, to the collection and recovery of tax and interest payable in accordance with this section as they apply to any other corporation tax, capital gains tax, and interest.
Tax on non-resident company recoverable from another member of group or from controlling director
629A. (1) In this section—
‘chargeable period’ means a year of assessment or an accounting period, as the case may be;
‘control’ shall be construed in accordance with section 432;
‘controlling director’, in relation to a company, means a director of the company who has control of the company;
‘director’, in relation to a company, has the same meaning as in section 116, and includes any person within section 433(4);
‘group’ has the meaning which would be given by section 616 if in that section references to residence in a relevant Member State were omitted and for references to ‘75 per cent subsidiaries’ there were substituted references to ‘51 per cent subsidiaries’, and references to a company being a member of a group shall be construed accordingly;
‘specified period’, in relation to a chargeable period, means the period beginning with the specified return date for the chargeable period (within the meaning of section 959A) and ending 3 years after the time when a return under Chapter 3 of Part 41A for the chargeable period is delivered to the Collector-General;
‘tax’ means corporation tax or capital gains tax chargeable by virtue of section 627(2);
‘taxpayer company’ means a company which is chargeable to tax by virtue of section 627(2).
(2) This section shall apply at any time on or after 10 October 2018 where tax payable by a company for a chargeable period (in this section referred to as ‘the chargeable period concerned’) is not paid within 6 months after the date on or before which the tax is due and payable.
(3) The Revenue Commissioners may, at any time before the end of the specified period in relation to the chargeable period concerned, serve on any person to whom subsection (4) applies a notice—
(a) stating the amount which remains unpaid of the tax payable by the taxpayer company for the chargeable period concerned and the date on or before which the tax became due and payable, and
(b) requiring that person to pay that amount within 30 days of the service of the notice.
(4) (a) This subsection shall apply to any person, being—
(i) a company which is, or during the period of 12 months ending with the time when the gain accrued was, a member of the same group as the taxpayer company and which is resident in the State, and
(ii) a person who is, or during that period was, a controlling director of the taxpayer company or of a company which has, or within that period had, control over the taxpayer company and who is resident in the State.
(b) This subsection shall apply in any case where the gain accrued before 10 October 2019, with the substitution in paragraph (a)(i) of ‘beginning with 10 October 2018, and’ for ‘of 12 months’.
(5) Any amount which a person is required to pay by a notice under this section may be recovered from the person as if it were tax due by such person, and such person may recover any such amount paid on foot of a notice under this section from the taxpayer company.
(6) A payment in pursuance of a notice under this section shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.
Transitional provision (power to serve notice under former section 629 not affected)
629B. (1) The substitution of this Chapter effected by section 30 of the Finance Act 2018 does not affect the power of the Revenue Commissioners to serve, on or after 10 October 2018, a notice such as is referred to in subsection (3) of the section 629 that was contained in this Chapter before 10 October 2018 (the ‘former section 629’) and, accordingly, the provisions of the former section 629 shall be deemed to remain in force in respect of tax payable, as referred to in subsection (2) of that section, that has not been paid within the period as specified in that subsection, notwithstanding—
(a) that the date on which that period expires is a date falling on or after 10 October 2018, or
(b) that the date on which the specified period (as defined in the former section 629) in relation to the chargeable period (as defined in that former section) concerned in the matter expires is a date falling on or after 10 October 2018.
(2) This section is without prejudice to the generality of the Interpretation Act 2005 and, in particular, section 27 of that Act as that section relates to a liability arising under the section 627 or 628 that was contained in this Chapter before 10 October 2018.
Company ceasing to be resident on formation of SE or SCE
629C. If at any time a company ceases to be resident in the State in the course of—
(a) the formation of an SE by merger, or
(b) the formation of an SCE,
then, whether or not the company continues to exist after the formation of the SE or (as the case may be) the SCE, the Tax Acts and the Capital Gains Tax Acts shall apply to any obligations of the company under this Act in relation to liabilities accruing and matters arising before that time—
(i) as if the company were still resident in the State, and
(ii) where the company has ceased to exist, as if the SE or (as the case may be) the SCE were the company.”.
8 OJ No. L193, 19.7.2016, p.1
9 OJ No. L84, 31.3.2010, p.1
num: 33
paragraphs: Chapter 1 of Part 2 of the Finance Act 2017 is amended with effect from 1 January 2019—
(a) in section 35—
(i) by inserting the following after the definition of “added sugar”:
“ ‘calcium content’ means the number of milligrams of calcium per 100 millilitres of sugar sweetened drink in ready to consume form;”,
and
(ii) by substituting the following for the definition of “sugar sweetened drink”:
“ ‘sugar sweetened drink’ means—
(a) a prepacked, ready to consume beverage, containing added sugar and which falls within CN Code heading 2009 or 2202 other than—
(i) beverages falling within CN Code subheading 2202 91 00,
(ii) alcohol free wines falling within CN Code subheading 2202 99 19,
(iii) beverages falling within CN Code subheading 2202 99 11, 2202 99 15, 2202 99 91, 2202 99 95 or 2202 99 99 where the food information set out on the label or packaging of, or the accompanying documentation for, the beverage concerned indicates a calcium content of 119 milligrams or more per 100 millilitres,
(iv) food supplements, or
(v) products exempted by the European Union (Provision of Food Information to Consumers) (Amendment) (No. 2) Regulations 2016 ( S.I. No. 559 of 2016 ) from requirements to provide specific food information on labels, packaging or accompanying documentation,
(b) a prepacked, concentrated substance in liquid or solid form, containing added sugar, which requires preparation before consumption by the final consumer and which, after such preparation, has the same characteristics as a beverage which falls within CN Code heading 2009 or 2202 other than—
(i) substances which when prepared have the same characteristics as a beverage falling within CN Code subheading 2202 99 11, 2202 99 15, 2202 99 91, 2202 99 95 or 2202 99 99 and a calcium content of 119 milligrams or more per 100 millilitres as can be ascertained from the food information set out on the label or packaging of, or the accompanying documentation for, the substance concerned,
(ii) food supplements, or
(iii) products exempted by the European Union (Provision of Food Information to Consumers) (Amendment) (No. 2) Regulations 2016 ( S.I. No. 559 of 2016 ) from requirements to provide specific food information on labels, packaging or accompanying documentation,
or
(c) a beverage prepared from a substance referred to in paragraph (b) and which is ready to consume;”,
and
(b) in section 42(1) by substituting “section 40 or 41” for “sections 40 and 41”.
num: 34
paragraphs: The Finance Act 2005 is amended with effect as on and from 10 October 2018 by substituting the following for Schedule 2 (as amended by section 49 of the Finance Act 2017 (No. 41 of 2017)) to that Act:
num: 35
paragraphs: (1) Chapter 1 of Part 2 of the Finance Act 2002 is amended—
(a) in section 67(1), by substituting “2 per cent” for “1 per cent”, and
(b) in section 67B(1), by substituting “25 per cent” for “15 per cent”.
(2) Subsection (1) shall come into operation on 1 January 2019.
num: 36
paragraphs: Section 130 of the Finance Act 1992 is amended by—
(a) substituting the following for the definition of “CO2 emissions”:
“ ‘CO2 emissions’ means—
(a) in the case of a passenger or a light duty vehicle—
(i) unless the matter falls within subparagraph (ii) or (iii), the level of carbon dioxide (CO2) emissions for a vehicle measured in accordance with the provisions of Commission Regulation (EC) 715/2007 of 20 June 200710 and listed in Annex VIII to Council Directive 2007/46/EC of 5 September 200711 , or
(ii) for a vehicle whose certificate of conformity issued on or after 1 September 2018, the level of carbon dioxide (CO2) emissions measured in accordance with Commission Regulation (EU) 1151/2017 of 1 June 201712 , or
(iii) the level of carbon dioxide (CO2) emissions for a vehicle measured in accordance with the Regulation referred to in subparagraph (ii) and determined using the correlation tool provided for in Commission Regulation (EU) 1153/2017 of 2 June 201713 ,
or
(b) in the case of a heavy duty vehicle, the level of carbon dioxide (CO2) emissions measured in accordance with Commission Regulation (EC) 595/2009 of 18 June 200914 ,
and, in the case of paragraph (a) of this definition, displayed in accordance with the provisions of Council Directive 1999/94/EC of 13 December 199915 and, in the case of that paragraph or paragraph (b) of this definition, 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 Union relating to the approximation of the laws of Member States in respect of type-approval for the type of vehicle concerned;”,
(b) inserting the following after the definition of “flexible fuel vehicle”:
“ ‘heavy oil’ has the same meaning as in section 94 of the Finance Act 1999 ;”,
and
(c) inserting the following after the definition of “prescribed”:
“ ‘propellant’ has the same meaning as in section 94 of the Finance Act 1999 ;”.
10 OJ No. L171, 29.6.2007, p. 1
11 OJ No. L263, 9.10.2007, p. 1
12 OJ No. L175, 7.7.2017, p. 1
13 OJ No. L175, 7.7.2017, p. 679
14 OJ No. L188, 18.7.2009, p. 1
15 OJ No. L12, 18.1.2000, p. 16
num: 37
paragraphs: Section 132 of the Finance Act 1992 is amended in subsection (3)—
(a) by substituting the following paragraph for paragraph (a):
“(a) in case the vehicle the subject of the registration or declaration concerned is a Category A vehicle (other than a vehicle that is a hybrid electric vehicle or a plug-in hybrid electric vehicle) designed to use heavy oil as a propellant—
(i) by reference to Table 1 to this subsection, or
(ii) where—
(I) the level of CO2 emissions cannot be confirmed by reference to the relevant EC type-approval certificate or EC certificate of conformity, and
(II) the Commissioners are not satisfied of the level of CO2 emissions by reference to any other document produced in support of the declaration for registration,
at the rate of an amount equal to the highest percentage specified in Table 1 to this subsection of the value of the vehicle or €740, whichever is the greater,”,
(b) by inserting the following paragraph after paragraph (a):
“(aa) in case the vehicle the subject of the registration or declaration concerned is a Category A vehicle other than a vehicle charged under paragraph (a)—
(i) by reference to Table 2 to this subsection, or
(ii) where—
(I) the level of CO2 emissions cannot be confirmed by reference to the relevant EC type-approval certificate or EC certificate of conformity, and
(II) the Commissioners are not satisfied of the level of CO2 emissions by reference to any other document produced in support of the declaration for registration,
at the rate of an amount equal to the highest percentage specified in Table 2 to this subsection of the value of the vehicle or €720, whichever is the greater,”,
and
(c) by—
(i) designating the Table to subsection (3) as Table 2 to that subsection, and
(ii) inserting the following Table before Table 2:
“Table 1
CO2 Emissions (CO2 g/km)
Percentage payable of the value of the vehicle
0g/km up to and including 80g/km
15% or €300 whichever is the greater
More than 80g/km up to and including 100g/km
16% or €320 whichever is the greater
More than 100g/km up to and including 110g/km
17% or €340 whichever is the greater
More than 110g/km up to and including 120g/km
18% or €360 whichever is the greater
More than 120g/km up to and including 130g/km
19% or €380 whichever is the greater
More than 130g/km up to and including 140g/km
20% or €400 whichever is the greater
More than 140g/km up to and including 155g/km
24% or €480 whichever is the greater
More than 155g/km up to and including 170g/km
28% or €560 whichever is the greater
More than 170g/km up to and including 190g/km
31% or €620 whichever is the greater
More than 190g/km up to and including 225g/km
35% or €700 whichever is the greater
More than 225g/km
37% or €740 whichever is the greater
”.
num: 38
paragraphs: (1) Section 134 of the Finance Act 1992 is amended, with effect from 1 January 2019:
(a) in subsection (7) by substituting “subsections (9) and (11)” for “subsection (9)”, and
(b) by inserting the following subsection after subsection (10):
“(11) Subsection (7) shall not apply to any vehicle registered on or after 1 January 2019.”.
(2) The Finance Act 1992 is amended, with effect from 1 April 2019:
(a) in section 134 by deleting subsections (7) to (11), and
(b) in section 141—
(i) in subsection (2)(s) by deleting “subsections (7) and (11) of section 134 and”, and
(ii) in subsection (3) by deleting “(other than subsections (6), (7) and (11))”.
num: 39
paragraphs: Section 135C of the Finance Act 1992 is amended—
(a) in subsection (1)(a)—
(i) by substituting “31 December 2019” for “31 December 2018”, and
(ii) in subparagraph (i), by substituting “paragraph (aa)” for “paragraph (a)”,
(b) in subsection (2)(a)—
(i) by substituting “31 December 2019” for “31 December 2018”, and
(ii) in subparagraph (i), by substituting “paragraph (aa)” for “paragraph (a)”,
and
(c) in subsection (3)(b)(i), by substituting “paragraph (aa)” for “paragraph (a)”.
num: 40
paragraphs: Section 135D(1) of the Finance Act 1992 is amended—
(a) in paragraph (a), by substituting “was charged the category A rate” for “is a category M1 vehicle”, and
(b) by substituting for paragraph (d)(ii) the following paragraph:
“(ii) where applicable, a valid test certificate (within the meaning of the Road Traffic (National Car Test) Regulations 2017 ( S.I. No. 415 of 2017 )) or a certificate of roadworthiness (within the meaning of the Road Safety Authority (Commercial Vehicle Roadworthiness) Act 2012 ), as the case may be, in respect of the vehicle concerned,”.
num: 41
paragraphs: Chapter 4 of Part 2 of the Finance Act 1992 is amended by inserting the following section after section 135D:
“135E. (1) In this section—
‘lease agreement’ means a lease agreement within the meaning of paragraph (c) of the definition of ‘qualifying vehicle’;
‘period of the lease agreement’ means the shortest continuous period of calendar months (including any part of a calendar month) which comprises the full period of use of the vehicle, the subject of the lease agreement concerned, by a person resident, or a person (other than a natural person) established, in the State;
‘qualifying vehicle’ means a vehicle—
(a) that is a category A vehicle,
(b) that has never previously been registered under section 131,
(c) that is the subject of a lease agreement—
(i) in respect of a vehicle which is temporarily in the State, and
(ii) which is of a period of between at least 1 calendar month, or part thereof, and a maximum of 48 calendar months,
completed between a person resident, or a person (other than a natural person) established, in the State and a business established in another Member State, where the business in that other Member State is—
(I) registered under section 65 of the Value-Added Tax Consolidation Act 2010 , and
(II) at the time of declaration of the vehicle for registration under section 131, the holder of a current tax clearance certificate issued in accordance with section 1095 of the Taxes Consolidation Act 1997 ,
and
(d) which shall be registered in the name of a person resident, or a person (other than a natural person) established, in the State;
‘removed from the State’ means—
(a) examination of the vehicle under the provisions of section 135D(1), and
(b) proof that the vehicle has been registered in another Member State or has been permanently exported outside the European Union, under section 135D(3)(b).
(2) When a person applies to register a qualifying vehicle under subsection (2) of section 131, the Commissioners may collect part of the charge to the duty of excise due under subsection (3) of section 132 in respect of the period of the lease agreement.
(3) Where subsection (2) applies, the charge applying at the time of registration of the vehicle shall be calculated in accordance with the following formula:
(V - X) x P
where—
V is the duty of excise payable under subsection (3) of section 132 when the vehicle was first declared for registration,
X is any other remission or repayment of vehicle registration tax or relief from vehicle registration tax available in relation to the vehicle at the time of registration, and
P is the relevant percentage rate applying to the period of the lease agreement specified in the Table to this section.
(4) Where a vehicle ceases to be a qualifying vehicle, other than where the vehicle is removed from the State, the balance of the duty of excise not collected under subsection (2) and the interest payable under subsection (7) become due and immediately payable.
(5) Where—
(a) the period of the lease agreement has been extended,
(b) the lease remains in the name of the person declared at first registration of the qualifying vehicle under section 131, and
(c) the total period of the lease agreement remains under 48 months,
then the person mentioned in paragraph (b) shall immediately declare in writing this change to the Commissioners and pay—
(i) the additional duty of excise due as calculated in accordance with subsection (6), and
(ii) the interest due, if any, at a rate of 0. 0274 per cent.
(6) The additional duty of excise due under subsection (5) shall be calculated in accordance with the following formula:
((V - X) x P) - A
where—
V is the duty of excise payable under subsection (3) of section 132 when the vehicle was first declared for registration,
X is any other remission or repayment of vehicle registration tax or relief from vehicle registration tax available in relation to the vehicle at the time of registration,
P is the relevant percentage rate applying to the period of the lease agreement, inclusive of any period or periods of extension of the lease agreement under subsection (5), specified in the Table to this section, and
A is the duty of excise calculated at the time of registration under subsection (3) and any periods of extension of the lease agreement under subsection (5).
(7) The duty of excise due in accordance with subsections (4) and (5) shall be increased by an amount calculated in accordance with the following formula:
A x P x N
where—
A is the duty of excise due in accordance with subsection (4) or (5),
P is 0. 0274 per cent, and
N is the number of days from the date the vehicle was first registered under section 131 to the date when the terms of the lease agreement were varied.
(8) (a) In respect of a qualifying vehicle that is removed from the State, at the end of the period of the lease agreement, the duty of excise liability shall be established in accordance with subsection (9) and any overpayment shall be repaid to the person who paid the duty of excise and any underpayment of the duty of excise shall be charged and paid to Revenue by the person declared at first registration of the qualifying vehicle under section 131.
(b) Notwithstanding paragraph (a), the amount to be repaid, if any, shall not exceed the amount of vehicle registration tax paid on the registration of the vehicle under section 131.
(9) The duty of excise liability under subsection (8) shall be calculated in accordance with the following formula:
(A - B) - C
where—
A is the duty of excise due under subsection (3) of section 132 when the vehicle was first declared for registration less any other remission or repayment of vehicle registration tax or relief from vehicle registration tax available in relation to the vehicle at the time of registration,
B is the duty of excise due under subsection (3) of section 132 to register the vehicle on the last day of the period of the lease agreement less any other remission or repayment of vehicle registration tax or relief from vehicle registration tax available in relation to the vehicle, and
C is the duty of excise due under subsection (3) of section 132—
(a) as calculated in accordance with subsection (3), and
(b) the additional duty of excise (if any) calculated in accordance with subsection (6),
of this section.
(10) Interest shall apply to the duty of excise liability calculated under subsection (9) and shall be calculated in the same manner as provided for in subsection (2)(b) of section 135D.
(11) The duty of excise liability under subsection (8), if any, shall be due and payable to Revenue, by the person declared at first registration of the qualifying vehicle under section 131, on the last day of the period of the lease.
(12) Subject to section 105BA of the Finance Act 2001 , and without prejudice to the provisions of section 960H of the Taxes Consolidation Act 1997 relating to the offset of overpayments, where the duty of excise liability calculated under subsection (9) results in an overpayment, following the deduction of the administration charge in subsection (13), in favour of the person who paid the duty of excise, that person may make a claim for repayment of such amount.
(13) An administration charge of €100 shall be payable at the following times:
(a) at the time of the making of an application under subsection (2);
(b) when the qualifying vehicle is examined prior to being removed from the State.
(14) Where a vehicle—
(a) ceases to be a qualifying vehicle, and
(b) the additional duty in respect of the vehicle has not been paid in accordance with subsection (4) or the vehicle has not been removed from the State,
such vehicle shall be liable to forfeiture.
(15) This section shall come into operation on such day or days as the Minister for Finance may appoint by order.
TABLE
Number of months in period of the lease agreement
Percentage Rate
1
2
2
4
3
6
4
8
5
10
6
12
7
num: 13
paragraphs: 5
8
15
9
num: 16
paragraphs: 5
10
18
11
num: 19
paragraphs: 5
12
21
13
22
14
23
15
24
16
25
17
26
18
27
19
28
20
29
21
30
22
31
23
32
24
33
25
34
26
35
27
36
28
37
29
38
30
39
31
40
32
41
33
42
34
43
35
44
36
45
37
num: 45
paragraphs: 75
38
num: 46
paragraphs: 5
39
num: 47
paragraphs: 25
40
48
41
num: 48
paragraphs: 75
42
num: 49
paragraphs: 5
43
num: 50
paragraphs: 25
44
51
45
num: 51
paragraphs: 75
46
num: 52
paragraphs: 5
47
num: 53
paragraphs: 25
48
54
”.
num: 42
paragraphs: In this Part “Principal Act” means the Value-Added Tax Consolidation Act 2010 .
num: 43
paragraphs: The Principal Act is amended with effect from 1 January 2019—
(a) in section 46(1)(ca) by substituting “paragraphs 7(a), 7A and 12” for “paragraphs 3(1) to (3), 7, 8, 11, 12, 13(3) and 13B(1) to (3)”, and
num: 44
paragraphs: Section 94 of the Principal Act is amended in subsection (7) by deleting paragraph (e).
num: 45
paragraphs: (1) Section 104(2) of the Principal Act is amended by deleting paragraphs (a), (b) and (c).
(2) Subsection (1) shall come into operation on 1 January 2019.
num: 46
paragraphs: In this Part “Principal Act” means the Stamp Duties Consolidation Act 1999 .
num: 47
paragraphs: The Principal Act is amended—
(a) in section 31, by substituting the following for subsection (3):
“(3) Where duty has been paid in accordance with subsections (1) and (2), the conveyance or transfer made in conformity with the contract or agreement shall not be chargeable with any duty, and the Commissioners, where an electronic return or paper return has been delivered to them, shall issue a stamp certificate to denote that the instrument is not chargeable with duty.”,
and
(b) in section 31A, by substituting the following for subsection (3):
“(3) Where duty has been paid in respect of a contract or agreement, in accordance with subsection (1), a conveyance or transfer made in conformity with the contract or agreement shall not be chargeable with any duty, and the Commissioners, where an electronic return or paper return has been delivered to them, shall issue a stamp certificate to denote that the instrument is not chargeable with duty.”.
num: 48
paragraphs: (1) The Principal Act is amended—
(a) in section 81AA—
(i) in subsection (1), by inserting the following definition:
“ ‘EU Regulation’ means Commission Regulation (EU) No. 702/2014 of 25 June 201416 declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union as that Regulation may be revised from time to time;”,
(ii) by inserting the following after subsection (7):
“(7A) The aggregate amount of relief granted to a person under this section and section 667B and section 667D of the Taxes Consolidation Act 1997 shall not exceed the limit of €70,000 as provided for by Article 18 of the EU Regulation.”,
(iii) in subsection (8), by substituting the following paragraph for paragraph (c):
“(c) the young trained farmer comes within the meaning of microenterprise or small enterprise in Article 2 of Annex 1 to the EU Regulation.”,
(iv) in subsection (11)—
(I) by substituting the following paragraph for paragraph (c):
“(c) This paragraph applies where—
(i) the transferee achieves the standard within the period of 4 years from the date of execution of an instrument to which this subsection applies,
(ii) it is the intention of the transferee, for a period of 5 years from the date on which a claim for repayment under paragraph (d) is made to the Commissioners to—
(I) spend not less than 50 per cent of his or her normal working time farming the land concerned, and
(II) retain ownership of that land,
and
(iii) the transferee—
(I) submits a business plan to Teagasc, and
(II) comes within the meaning of microenterprise or small enterprise in Article 2 of Annex 1 to the EU Regulation,
before a repayment under paragraph (d) is claimed.”,
and
(II) by inserting the following after paragraph (c) (as substituted by clause (I)):
“(d) Where paragraph (c) applies, the transferee may claim a repayment of stamp duty paid in respect of the instrument concerned and the Commissioners shall then cancel and repay any duty that was paid in respect of that instrument.”,
(v) in subsection (12), by deleting paragraphs (e) and (f),
(vi) in subsection (13), by deleting paragraphs (b), (c) and (d), and
(vii) in subsection (16), by substituting “31 December 2021” for “31 December 2018”,
and
(b) in section 81C—
(i) by deleting subsection (7),
(ii) in subsection (9), by deleting paragraph (c), and
(iii) in subsection (10)—
(I) in paragraph (b), by deleting “or (c), as the case may be,”, and
(II) by deleting paragraphs (c) and (d).
(2) Subsection (1)(a)(vii) shall come into operation on such day as the Minister for Finance may appoint by order.
16 OJ No. L193, 1.7.2014, p. 1
num: 49
paragraphs: Section 159A of the Principal Act is amended by inserting the following after subsection (1):
“(1A) Any person aggrieved by a decision of the Commissioners on a claim for repayment, within the meaning of section 159B(1), may appeal the decision to the Appeal Commissioners, in accordance with section 949I of the Taxes Consolidation Act 1997 , within the period of 30 days after the date of the notification of the decision to that person.”.
num: 50
paragraphs: In this Part “Principal Act” means the Capital Acquisitions Tax Consolidation Act 2003 .
num: 51
paragraphs: The Principal Act is amended in the manner and to the extent specified in Schedule 1.
num: 52
paragraphs: Section 86 of the Principal Act is amended by inserting the following after subsection (2):
“(2A) For the purposes of subsection (2), a successor is deemed to be beneficially entitled to, or to have a beneficial interest in, a dwelling house that is subject to a discretionary trust under or in consequence of a disposition made by the successor where that successor is an object of the trust.”.
num: 53
paragraphs: (1) Paragraph 1 of Part 1 of Schedule 2 to the Principal Act is amended, in paragraph (a) of the definition of “group threshold”, by substituting “€320,000” for “€310,000”.
(2) This section applies to gifts and inheritances taken on or after 10 October 2018.
num: 54
paragraphs: In this Part “Principal Act” means the Taxes Consolidation Act 1997 .
num: 55
paragraphs: The Principal Act is amended—
(a) in section 669(5), by inserting the following paragraph after paragraph (b):
“(c) The Appeal Commissioners dealing with an appeal from the decision of an inspector on a claim in a case where in accordance with paragraph (a) the inspector has attributed to a person at the beginning of an accounting period trading stock of a particular value shall, in hearing and determining the appeal in so far as it relates to the value of the trading stock to be so attributed, determine such value as appears to the Appeal Commissioners to be just and reasonable, having regard to those factors to which the inspector is required to have regard by virtue of paragraph (b).”,
(b) in section 949P(1), by substituting “section 960L” for “section 960K”,
(c) in section 949Q(2), by deleting paragraphs (d) and (e),
(d) by deleting section 949AG, and
(e) in section 949AN(3)—
(i) by substituting “may determine the new appeal without holding a hearing where-” for “may make a determination in an appeal under subsection (1) where-”, and
(ii) in paragraph (b), by inserting “that it is necessary to” after “and”.
num: 56
paragraphs: Section 851A(8) of the Principal Act is amended by substituting the following paragraph for paragraph (m):
“(m) where relief is granted under—
(i) section 81D of the Stamp Duties Consolidation Act 1999 , or
(ii) section 667C,
and the information is disclosed only to the Minister for Agriculture, Food and the Marine for the sole purpose of complying with Commission Regulation (EU) No. 1408/2013 of 18 December 201317 ,”.
17 OJ No. L352, 24.12.2013, p. 9
num: 57
paragraphs: Section 858(1) of the Principal Act is amended by substituting the following paragraph for paragraph (b):
“(b) the European Communities (Intrastat) Regulations 2011 ( S.I. No. 610 of 2011 );”.
num: 58
paragraphs: (1) The Principal Act is amended—
(a) in section 472(2)(a)(ii), by substituting “Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”,
(b) in section 531AL—
(i) by inserting the following definition:
“ ‘Income Tax Regulations’ means the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 );”,
and
(ii) by deleting the definition of “PAYE Regulations”,
(c) in paragraph (a) of the Table to section 531AM(1)—
(i) in subparagraph (i), by substituting “Regulation 31 of the Income Tax Regulations” for “Regulations 41 and 42 of the PAYE Regulations”, and
(ii) in subparagraph (III), by substituting “following receipt of a notification issued by an inspector under section 984(1)” for “on the direction of an inspector in accordance with Regulation 10(3) of the PAYE Regulations”,
(d) in section 531AN—
(i) by substituting the following for subsection (7):
“(7) Subsection (5) shall not apply where—
(a) the normal day on which relevant emoluments are paid to an individual during a tax year changes either during that year or the preceding year, or
(b) a payment of relevant emoluments occurs on a relevant date and that date is not the normal day on which relevant emoluments are paid to an individual.”,
and
(ii) by inserting the following subsection after subsection (7):
“(8) A reference in subsection (7) to the normal day is a reference to the day during the weekly or fortnightly cycle, as the case may be, on which relevant emoluments are paid to the individual concerned.”,
(e) by inserting the following section after section 531AO:
“Return by employer
531AOA. (1) In this section, ‘return filing date’ means, in relation to an income tax month, the day that is 15 days from the last day of the month.
(2) On or before the return filing date for an income tax month, an employer shall make a return to the Revenue Commissioners specifying the total universal social charge deducted or repaid in respect of that month in accordance with Regulations made under section 531AAB.
(3) Where the Revenue Commissioners issue a statement to an employer which sets out, in summary form in respect of an income tax month, the total amount of universal social charge deducted or repaid by that employer, the details of the statement shall on the return filing date, or where the statement is issued after the return filing date, on that later date, be deemed to be a return made by the employer in respect of that month for the purposes of subsection (2).
(4) Subsection (3) shall not apply where a statement referred to in that subsection is issued to an employer and the details on that statement do not accurately reflect all payments of emoluments, to which this Part applies, made by the employer in the income tax month concerned or the liability of the employer to deduct universal social charge on those payments.
(5) Where subsection (4) applies, the employer concerned shall ensure that all payments relating to the income tax month concerned and the associated universal social charge liability are accurately reflected in the return required under subsection (2) in respect of that month.”,
(f) in section 531AY(4), by substituting “Income Tax Regulations” for “PAYE Regulations”,
(g) in section 531AAD(10), by substituting “Within 14 days” for “Within 46 days”,
(h) in section 784(2B)(b), by substituting “a revenue payroll notification (within the meaning of section 983)” for “a certificate of tax credits and standard rate cut-off point or a tax deduction card”,
(i) in section 784A(3)(b), by substituting “a revenue payroll notification (within the meaning of section 983)” for “a certificate of tax credits and standard rate cut-off point or a tax deduction card”,
(j) in section 787G(1)(b), by substituting “a revenue payroll notification (within the meaning of section 983)” for “a certificate of tax credits and standard rate cut-off point or a tax deduction card”,
(k) in section 790AA(7)(b)(ii), by substituting “a revenue payroll notification (within the meaning of section 983)” for “a certificate of tax credits and standard rate cut-off point or a tax deduction card”,
(l) in section 864A—
(i) in subsection (1)(d), by substituting “a claim under Regulation 22(5) of the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “a claim under Regulation 26(5) of the Income Tax (Employments)(Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”, and
(ii) in subsection (8), by substituting “Regulation 4, or amended the amount in accordance with Regulation 5, of the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “Regulation 10, or amended the amount in accordance with Regulation 13, of the Income Tax (Employments)(Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”,
(m) in section 897A—
(i) in subsection (1)—
(I) by deleting the definition of “Consolidated Regulations”,
(II) by substituting the following for the definition of “employee pension contribution”:
“ ‘employee pension contribution’ in relation to a year of assessment and a scheme referred to in either section 774 or 776, means a contribution referred to in paragraph (1)(b) of Regulation 31 of the Income Tax Regulations;”,
(III) by inserting the following definition:
“ ‘Income Tax Regulations’ means the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 );”,
(IV) by substituting the following for the definition of “PRSA employee contribution”:
“ ‘PRSA employee contribution’, in relation to a year of assessment, means any PRSA contribution made by the employee in the year of assessment which is a contribution referred to in paragraph (1)(c) of Regulation 31 of the Income Tax Regulations;”,
and
(V) by substituting the following for the definition of “RAC premium”:
“ ‘RAC premium’, in relation to a year of assessment, means any qualifying premium (within the meaning of section 784) paid by an individual in a year of assessment which is a contribution referred to in paragraph (1)(d) of Regulation 31 of the Income Tax Regulations.”,
(ii) by substituting the following for subsection (2)—
“(2) Any person who is required to notify the Revenue Commissioners under section 985G(2) shall include the following particulars relating to employees in that notification—
(a) where a pension contribution deduction is made from the emoluments paid to an employee, the amount of the pension contribution,
(b) where a PRSA contribution deduction is made from the emoluments paid to an employee, the amount of the PRSA contribution,
(c) where an RAC premium deduction is made from the emoluments paid to an employee, the amount of the RAC premium,
(d) where an additional superannuation contribution deduction is made from the emoluments paid to an employee, the amount of the additional superannuation contribution,
(e) the amount of an employer pension contribution, and
(f) the amount of a PRSA employer contribution.”,
and
(iii) by substituting the following for subsection (3)—
“(3) Sections 1052 and 1054 shall apply to a failure by a person to provide the particulars required by subsection (2) as they apply to a failure to deliver a return referred to in section 1052.”,
(n) in section 903(1), in the definition of “records”, by substituting “revenue payroll notifications (within the meaning of section 983)” for “certificates of tax credits and standard rate cut-off point, tax deduction cards, certificates issued in accordance with Regulation 20 of the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”,
(o) in section 960(2), by substituting “Regulation 28 of the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “Regulation 37 of the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”,
(p) in section 960A—
(i) in the definition of “assessment”, by deleting “under section 990 or”,
(ii) by inserting the following definition:
“ ‘Income Tax Regulations’ means the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 );”,
and
(iii) by deleting the definition of “PAYE Regulations”,
(q) in section 960I—
(i) in subsection (5)(a), by substituting “Income Tax Regulations” for “PAYE Regulations”, and
(ii) by substituting the following for subsection (6):
“(6) For the purposes of subsection (5)—
(a) any amount of tax assessed under section 990, or
(b) any balance of tax so assessed but remaining unpaid,
is deemed to be an amount of tax which any person paying emoluments was liable, under Chapter 4 and the Income Tax Regulations, to pay to the Collector-General.”,
(r) in section 960O(4)—
(i) in paragraph (a), by deleting subparagraph (iv), and
(ii) by substituting the following for paragraph (c):
“(c) For the purposes of paragraph (a)(i), ‘authorised employer’s PAYE liability’, in relation to an employer whose due date for the payment of tax has been varied by way of a notice under section 985G(7), means the amount determined by the formula—
(A + B - C) + D
where—
A is any amount which, if a notice under section 985G(7) was not issued, would have been an amount due at the relevant date in respect of sums that the employer is liable under Chapter 4 and the Income Tax Regulations to deduct from emoluments paid by the employer during the relevant period,
B is any amount which, if a notice under section 985G(7) was not issued, would have been an amount due at the relevant date in respect of sums that were not so deducted but which the employer was liable, in accordance with section 985A and any regulations under that section, to remit to the Collector-General in respect of notional payments made by the employer during the relevant period,
C is any amount which the employer was liable under Chapter 4 and the Income Tax Regulations to repay during the relevant period, and
D is any interest payable under section 991 in respect of the amounts referred to in the meanings of A and B.”,
(s) in section 960P—
(i) in subsection (3), by deleting paragraph (e), and
(ii) in subsection (5), by substituting “Income Tax Regulations” for “PAYE Regulations” in the meanings of A and C,
(t) in section 985H(1)(i), by substituting “Regulation 19 of the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “Regulation 22 of the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”,
(u) in section 986A, by inserting the following after subsection (3):
num: 59
paragraphs: Section 959AA of the Principal Act is amended by inserting the following after subsection (2)—
“(2A) Notwithstanding subsection (1) and section 959AB(1), a Revenue officer may, at any time, make or amend an assessment for a chargeable period to give effect to a mutual agreement reached, under an arrangement having the force of law by virtue of section 826(1), between the competent authority of the State and a competent authority of another jurisdiction and tax shall be paid or repaid (notwithstanding any limitation in section 865(4) on the time within which a claim for repayment of tax is required to be made) where appropriate in accordance with any such assessment or amended assessment.”.
num: 60
paragraphs: (1) The Principal Act is amended—
(a) in Part 7, by inserting the following section after section 218:
“Certain income of Motor Insurers’ Bureau of Ireland
num: 61
paragraphs: Part 5 of Schedule 24A to the Principal Act is amended by inserting the following:
“The Multilateral Convention to Implement Tax Treaty Related Measures Order 2018 ( S.I. No. 440 of 2018 ).”.
num: 62
paragraphs: The enactments specified in Schedule 2—
num: 63
paragraphs: Section 44 of the Forestry Act 1988 is amended, in subsection (11) (amended by section 67 (e) of the Ministers and Secretaries (Amendment) Act 2011 ), by substituting “paid by the Minister for Finance” for “paid by the Minister for Public Expenditure and Reform”.
num: 64
paragraphs: All taxes and duties imposed by this Act are placed under the care and management of the Revenue Commissioners.
num: 65
paragraphs: (1) This Act may be cited as the Finance Act 2018.
(2) Part 1 shall be construed together with—
(a) in so far as it relates to income tax, the Income Tax Acts,
(b) in so far as it relates to universal social charge, Part 18D of the Principal Act,
(c) in so far as it relates to corporation tax, the Corporation Tax Acts, and
(d) 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.
(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) universal social charge, shall be construed together with Part 18D of the Principal Act,
(c) corporation tax, shall be construed together with the Corporation Tax Acts,
(d) capital gains tax, shall be construed together with the Capital Gains Tax Acts,
(e) customs, shall be construed together with the Customs Acts,
(f) duties of excise, shall be construed together with the statutes which relate to duties of excise and the management of those duties,
(g) value-added tax, shall be construed together with the Value-Added Tax Acts,
(h) stamp duty, shall be construed together with the Stamp Duties Consolidation Act 1999 and the enactments amending or extending that Act,
(i) domicile levy, shall be construed together with Part 18C of the Principal Act, and
(j) 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 for in Part 1, that Part shall come into operation on 1 January 2019.
(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.