Finance Act 2002

Type Act

Publication 2002-03-25

State In force

Source Irish Statute Book

articles 141

of any relevant foreign tax borne by the company in respect of relevant interest in that period as does not exceed the corporation tax which would be so payable and which is attributable to the amount of the relevant interest.

(3) (a) This paragraph shall not apply as respects any accounting period of a company which is a relevant accounting period within the meaning of section 442.

(b) Subsection (2) of section 442 shall apply for the purposes of this paragraph as it applies for the purposes of Part 14.”.

58 Amendment of section 958 (date for payment of tax) of Principal Act.

58.—Section 958 (as amended by the Finance Act, 2001) of the Principal Act is amended—

(a) by substituting the following for subsection (1):

“(1) (a) In this section—

‘corresponding corporation tax for the preceding chargeable period’, in relation to a chargeable period which is an accounting period of a company, means an amount determined by the formula—

	T	C
	P

where—

T is the corporation tax payable by the chargeable person for the preceding chargeable period,

C is the number of months in the chargeable period, and

P is the number of months in the preceding chargeable period;

‘pre-preceding chargeable period’, in relation to a chargeable period, means the chargeable period next before the preceding chargeable period;

‘relevant limit’, in relation to a chargeable period which is an accounting period of a company, means €50,000; but where the length of a chargeable period is less than 12 months the relevant limit in relation to the chargeable period shall be proportionately reduced.

(b) For the purposes of this section, a chargeable person being a company shall be a small company in relation to a chargeable period if the corresponding corporation tax for the preceding chargeable period payable by the chargeable person does not exceed the relevant limit in relation to the accounting period.”,

(b) by substituting the following for subsection (2):

“(2) Subject to subsection (10), preliminary tax appropriate to a chargeable period which is a year of assessment for income tax shall be due and payable on or before 31 October in the year of assessment and, accordingly, references in this Part to the due date for the payment of an amount of preliminary tax shall, in the case where that tax is due for a chargeable period which is a year of assessment, be construed as a reference to 31 October in the year of assessment.

(2A)(a) Preliminary tax appropriate to a chargeable period which is an accounting period of a company ending in the period from 1 January 2002 to 31 December 2005 shall be due and payable in 2 instalments.

(b) The first of the 2 instalments referred to in paragraph (a) (in this section referred to as the ‘first instalment’) shall be due and payable not later than the day which is 31 days before the day on which the accounting period ends; but where that day is later than day 28 of the month in which the first-mentioned day occurs, the first instalment shall be due and payable not later than day 28 of that month or such earlier day in that month as may be specified by order made by the Minister for Finance.

(c) Notwithstanding paragraph (b), in the case where an accounting period of a company is less than one month and one day in length, the first instalment shall be due and payable not later than the last day of the accounting period; but where that day is later than day 28 of the month in which that day occurs, the first instalment shall be due and payable not later than day 28 of that month or such earlier day in that month as may be specified by order made by the Minister for Finance.

(d) Notwithstanding paragraphs (b) and (c), in the case of an accounting period of a company ending in the year 2002, the first instalment shall not be due and payable earlier than 28 June 2002.

(e) The second of the 2 instalments referred to in paragraph (a) (in this section referred to as the ‘second instalment’) shall be due and payable within the period of 6 months from the end of the accounting period, but in any event not later than day 28 of the month in which that period of 6 months ends, or such earlier day in that month as may be specified by order made by the Minister for Finance.

(2B)(a) Preliminary tax appropriate to a chargeable period which is an accounting period of a company ending on or after 1 January 2006 shall be due and payable not later than the day which is 31 days before the day on which the accounting period ends; but where that day is later than day 28 of the month in which the first-mentioned day occurs, that tax shall be due and payable not later than day 28 of that month or such earlier day in that month as may be specified by order made by the Minister for Finance.

(b) Notwithstanding paragraph (a), in the case where an accounting period of a company ending on or after 1 January 2006 is less than one month and one day in length, preliminary tax shall be due and payable not later than the last day of the accounting period; but where that day is later than day 28 of the month in which that day occurs, preliminary tax shall be due and payable not later than day 28 of that month or such earlier day in that month as may be specified by order made by the Minister for Finance.

(2C)(a) References in this Part to the due date for the payment of the first instalment, or the second instalment, of preliminary tax shall be construed in accordance with subsection (2A).

(b) References in this Part to the due date for the payment of an amount of preliminary tax shall, in the case where that tax is due for a chargeable period which is an accounting period of a company ending on or after 1 January 2006, be construed in accordance with subsection (2B).”,

(c) in subsection (3), by substituting “subsections (3A), (4), (4B), (4C), (4D) and (4E)” for “subsections (3A) and (4)”,

(d) in subsection (4), by inserting “which is a year of assessment” after “chargeable period” where it first occurs, and

(e) by inserting the following after subsection (4A):

“(4B) (a) Subject to subsection (4D), where but for this subsection tax payable by a chargeable person for a chargeable period which is an accounting period of a company ending in the period from 1 January 2002 to 31 December 2005 would be due and payable in accordance with subsection (3), and—

(i) the chargeable person has defaulted in the payment of the first instalment or the second instalment of preliminary tax for the chargeable period,

(ii) where the chargeable person is a small company in relation to the accounting period, the first instalment of the preliminary tax paid by the chargeable person for the chargeable period is less than, or less than the lower of—

(I) where the chargeable period is an accounting period of the company ending in the year 2002, 18 per cent of the tax payable by the chargeable person for the chargeable period or 20 per cent of the corresponding corporation tax for the preceding chargeable period,

(II) where the chargeable period is an accounting period of the company ending in the year 2003, 36 per cent of the tax payable by the chargeable person for the chargeable period or 40 per cent of the corresponding corporation tax for the preceding chargeable period,

(III) where the chargeable period is an accounting period of the company ending in the year 2004, 54 per cent of the tax payable by the chargeable person for the chargeable period or 60 per cent of the corresponding corporation tax for the preceding chargeable period, or

(IV) where the chargeable period is an accounting period of the company ending in the year 2005, 72 per cent of the tax payable by the chargeable person for the chargeable period or 80 per cent of the corresponding corporation tax for the preceding chargeable period,

(iii) where the chargeable person is not a small company in relation to the accounting period, the first instalment of the preliminary tax paid by the chargeable person for the chargeable period is less than—

(I) where the chargeable period is an accounting period of the company ending in the year 2002, 18 per cent,

(II) where the chargeable period is an accounting period of the company ending in the year 2003, 36 per cent,

(III) where the chargeable period is an accounting period of the company ending in the year 2004, 54 per cent, or

(IV) where the chargeable period is an accounting period of the company ending in the year 2005, 72 per cent,

of the tax payable by the chargeable person for the chargeable period,

(iv) the aggregate of the first instalment and the second instalment of the preliminary tax paid by the chargeable person for the chargeable period is less than 90 per cent of the tax payable by the chargeable person for the chargeable period, or

(v) the first instalment or the second instalment of the preliminary tax payable by the chargeable person for the chargeable period was not paid by the date on which it was due and payable,

then the tax payable by the chargeable person for the chargeable period shall be deemed to have been due and payable in accordance with paragraph (b).

(b)(i) Tax due and payable in accordance with this paragraph by a chargeable person for a chargeable period which is an accounting period of a company shall be due and payable in 2 instalments.

(ii) The first of the 2 instalments referred to in subparagraph (i) (in this paragraph and in paragraphs (c) and (d) referred to as the ‘first relevant instalment’) shall be due and payable not later than the day on which the first instalment of preliminary tax is due and payable in accordance with subsection (2A).

(iii) The second of the 2 instalments referred to in subparagraph (i) (in this paragraph and in paragraphs (c) and (d) referred to as the ‘second relevant instalment’) shall be due and payable not later than the day on which the second instalment of preliminary tax is due and payable in accordance with subsection (2A).

(i) where the chargeable period is an accounting period of the company ending in the year 2002, 20 per cent,

(ii) where the chargeable period is an accounting period of the company ending in the year 2003, 40 per cent,

(iii) where the chargeable period is an accounting period of the company ending in the year 2004, 60 per cent, and

(iv) where the chargeable period is an accounting period of the company ending in the year 2005, 80 per cent,

of the tax payable by the chargeable person for the chargeable period.

(d) The amount of the second relevant instalment shall be an amount equal to the excess of the tax payable by the chargeable person for the chargeable period over the amount of the first relevant instalment.

(4C) Subject to subsection (4E), where but for this subsection tax payable by a chargeable person for a chargeable period which is an accounting period of a company ending on or after 1 January 2006 would be due and payable in accordance with subsection (3), and—

(a) the chargeable person has defaulted in the payment of preliminary tax for the chargeable period,

(b) the preliminary tax paid by the chargeable person for the chargeable period is—

(i) where the chargeable person is a small company in relation to the accounting period, less than, or less than the lower of—

(I) 90 per cent of the tax payable by the chargeable person for the chargeable period, or

(II) the corresponding corporation tax for the preceding chargeable period,

and

(ii) where the chargeable person is not a small company in relation to the accounting period, less than 90 per cent of the tax payable by the chargeable person for the chargeable period,

(c) the preliminary tax payable by the chargeable person for the chargeable period was not paid by the date on which it was due and payable,

then the tax payable by the chargeable person for the chargeable period shall be deemed to have been due and payable on the due date for the payment of an amount of preliminary tax for the chargeable period.

(4D) Where as respects a chargeable period which is an accounting period of a company ending in the period 1 January 2002 to 31 December 2005—

(a) the first instalment of preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2A) is less than—

(i) where the chargeable period is an accounting period ending in 2002, 18 per cent,

(ii) where the chargeable period is an accounting period ending in 2003, 36 per cent,

(iii) where the chargeable period is an accounting period ending in 2004, 54 per cent, or

(iv) where the chargeable period is an accounting period ending in 2005, 72 per cent,

of the tax payable by the chargeable person for the chargeable period,

(b) the preliminary tax so paid by the chargeable person for the chargeable period is not less than—

(i) where the chargeable period is an accounting period ending in 2002, 18 per cent,

(ii) where the chargeable period is an accounting period ending in 2003, 36 per cent,

(iii) where the chargeable period is an accounting period ending in 2004, 54 per cent, or

(iv) where the chargeable period is an accounting period ending in 2005, 72 per cent,

of the amount which would be payable by the chargeable person for the chargeable period if no amount were included in the chargeable person's profits for the chargeable period in respect of chargeable gains on the disposal by the person of assets in the part of the chargeable period which is after the date by which the first instalment for the chargeable period is payable in accordance with subsection (2A),

(c) the chargeable person makes a further payment of preliminary tax for the chargeable period within one month after the end of the chargeable period and the aggregate of that payment and the first instalment paid by the chargeable person for the chargeable period in accordance with subsection (2A) is not less than the percentage specified in paragraph (a) in relation to the chargeable period of the tax payable by the chargeable person for the chargeable period, and

(d) the aggregate of those payments and the second instalment paid by the chargeable person for the chargeable period in accordance with subsection (2) is not less than 90 per cent of the tax payable by the chargeable person for the chargeable period,

then the preliminary tax paid by the chargeable person for the chargeable period shall be treated for the purposes of subsection (4B) as having been paid by the date by which it is due and payable.

(4E) Where as respects a chargeable period which is an accounting period of a company ending on or after 1 January 2006—

(a) the preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2B) is less than 90 per cent of the tax payable by the chargeable person for the chargeable period,

(b) the preliminary tax so paid by the chargeable person for the chargeable period is not less than 90 per cent of the amount which would be payable by the chargeable person for the chargeable period if no amount were included in the chargeable person's profits for the chargeable period in respect of chargeable gains on the disposal by the person of assets in the part of the chargeable period which is after the date by which preliminary tax for the chargeable period is payable in accordance with subsection (2B), and

(c) the chargeable person makes a further payment of preliminary tax for the chargeable period within one month after the end of the chargeable period and the aggregate of that payment and the preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2B) is not less than 90 per cent of the tax payable by the chargeable person for the chargeable period.

then the preliminary tax paid by the chargeable person for the chargeable period shall be treated for the purposes of subsection (4C) as having been paid by the date by which it is due and payable.”.

CHAPTER 5 Capital Gains Tax

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

59.—Section 598(1) of the Principal Act is amended in the definition of “qualifying assets” by substituting the following for paragraphs (ii) and (iii):

“(ii) (I) the shares or securities, which the individual has owned for a period of not less than 10 years ending with the disposal, being shares or securities of a relevant company that is a company—

(A) which has been a trading company, or a farming company, and the individual's family company, or

(B) which has been a member of a trading group, of which the holding company is the individual's family company,

during a period of not less than 10 years ending with the disposal and the individual has been a working director of the relevant company for a period of not less than 10 years during which period he or she has been a full-time working director of the relevant company for a period of not less than 5 years, and

(II) land, machinery or plant (if any) which the individual has owned for a period of not less than 10 years ending with the disposal, and which—

(A) was used throughout that period for the purposes of the relevant company, and

(B) is disposed of at the same time and to the same person as the shares or securities referred to in subparagraph (I),

(iii) land used for the purposes of farming carried on by the individual which he or she has owned and used for that purpose for a period of not less than 10 years ending with the transfer of an interest in that land for the purposes of complying with the terms of the Scheme, and

(iv) land which has been let by the individual at any time in the period of 5 years ending with the disposal, where—

(I) immediately before the time the land was first let in that period, the land was owned by the individual and used for the purposes of farming carried on by the individual for a period of not less than 10 years ending at that time, and

(II) the disposal is a disposal referred to in section 652(5)(a);”.

60 Amendment of section 600A (replacement of qualifying premises) of Principal Act.

60.—Section 600A of the Principal Act is amended in subsection (1)—

(a) in the definition of “qualifying premises” by substituting the following for paragraph (a):

“(a) in which there is one or more residential units,”,

and

(b) in the definition of “replacement premises” by substituting the following for paragraph (b):

“(b) in which the number of residential units is—

(i) not less than 3, and

(ii) not less than the number of residential units in the qualifying premises,”.

61 Amendment of section 605 (disposals to authority possessing compulsory purchase powers) of Principal Act.

61.—Section 605 of the Principal Act is amended—

(a) in subsection (1), by substituting the following for paragraph (c):

“(c) subject to subsection (4A), the original assets and the replacement assets are within one, and the same one, of the classes of assets specified in subsection (5),”,

and

(b) by inserting the following after subsection (4):

“(4A) Where the original assets is land which has been let by the person making the disposal at any time in the period of 5 years ending with the disposal and, immediately before the time the land was first let in that period, the land was owned by that person and used by that person for farming (within the meaning of section 654) for a period of not less than 10 years ending with the time the land was first so let, the land may be treated as being within Class 1, which is referred to in subsection (5).”.

62 Amendment of section 542 (time of disposal and acquisition) of Principal Act.

62.—Section 542(1) of the Principal Act is amended by inserting the following after paragraph (c):

“(d) Notwithstanding paragraph (c), for the purposes of the Capital Gains Tax Acts where a person who is engaged in farming (within the meaning of section 654) disposes of an interest in land to an authority possessing compulsory purchase powers, for the purposes mentioned in section 652(5)(a), and immediately before the disposal the land was used for the purposes of farming, the chargeable gain (if any) on the disposal shall be deemed to accrue in the year of assessment in which the person receives the consideration for the disposal.”.

63 Amendment of section 980 (deduction from consideration on disposal of certain assets) of Principal Act.

63.—Section 980 of the Principal Act is amended in subsection (3) by substituting “€500,000” for “€381,000”.

PART 2 Excise

Chapter 1 Consolidation and Modernisation of Betting Duties Law

64 Interpretation (Chapter 1).

64.—In this Chapter, save where the context otherwise requires—

“duty” means, other than in sections 65 and 66, the duty of excise imposed by section 67;

“premises” has the same meaning as it has in the Betting Act, 1931;

“proprietor” has the same meaning as it has in the Betting Act, 1931;

“register” means the register of bookmaking offices kept by the Revenue Commissioners under the Betting Act, 1931;

“registered premises” has the same meaning as it has in the Betting Act, 1931; and

“totalisator” has the same meaning as it has in the Totalisator Act, 1929.

65 Bookmaker's Licence Duty.

65.—There shall be charged, levied and paid for and upon every licence to act and carry on business as a bookmaker issued under the Betting Act, 1931, and on the renewal of every such licence, an excise duty of €250.

66 Registered Bookmaking Premises Duty.

66.—(1) An excise duty of €380 shall be charged, levied and paid on the registration and also on every renewal of the registration of any premises in the register of premises maintained by the Revenue Commissioners under the Betting Act, 1931, in which the business of bookmaking is carried on.

(2) The duty imposed by this section shall be charged and levied on and shall be paid by the person who is entered in such register as the proprietor of the premises concerned.

(3) Where the excise duty of €380 imposed by this section, has been paid in respect of the registration or the renewal of the registration of any premises in the said register for any year, the said excise duty shall not (unless the registration is renewed under section 78) be charged or levied on any subsequent registration, taking effect within the said year, of the said premises in the said register.

(4) In this section the word “year” means a period of twelve months beginning on any 1st day of December.

67 Betting Duty.

67.—(1) There shall be charged, levied and paid on and by every bookmaker who makes, lays or otherwise enters into any bets an excise duty (in this Chapter referred to as “betting duty”) at the rate of 2 per cent on the amount of every bet entered into by him or her.

(2) For the purpose of this section the amount of a bet shall be—

(a) the sum of money or the open market value of other consideration which by the terms of the bet the bookmaker will be entitled to receive, retain, or take credit for if the event the subject of the bet is determined in his or her favour, or

(b) where the amount cannot be determined in accordance with paragraph (a) at the time the bet is placed, the amount of the unit stake.

(3) Whenever it is proved to the satisfaction of the Revenue Commissioners—

(a) that a bet in respect of which the duty imposed by this section is chargeable has become void for any reason other than the mutual consent of the parties thereto, or

(b) that the amount of a bet in respect of which the said duty is chargeable is calculated in accordance with subsection (2) (a) has not been and is not likely to be collected by the bookmaker,

the Revenue Commissioners may, subject to such conditions as they may think fit to impose, either (as the case may require) repay the duty paid or remit the duty chargeable in respect of such bet.

(4) Every person who fails or neglects to pay, any sum payable by him or her in respect of betting duty imposed by this section within the prescribed period, shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of €1,900.

68 Exemption from duty on bets.

68.—(1) (a) Betting duty shall not be charged or levied on bets where such bets—

(i) are entered into during and at a race-meeting held at an authorised racecourse, within the meaning of the Irish Horseracing Industry Act, 1994, and are in respect of one or more than one event taking place at the meeting or at a place other than at the meeting, or

(ii) are entered into during a meeting at which a series of greyhound races is held, and at the place at which such meeting is held, and are in respect of one or more than one event taking place at the meeting or at a place other than at the meeting.

(b) The provisions of paragraph (a) shall not apply to bets entered into by any means of telecommunications.

(2) Betting duty shall not be charged or levied on totalisator bets accepted in registered premises for and on behalf of Horse Racing Ireland or Bord na gCon or a subsidiary (within the meaning of section 2 of the Horse and Greyhound Racing Act, 2001) of either body operating under a licence granted under the Totalisator Act, 1929.

69 Time when duty becomes due.

69.—Betting duty shall become due at the time the bet is accepted by the bookmaker.

70 Returns.

70.—Every person liable to pay betting duty shall within 15 days following the end of the month or such other period as the Revenue Commissioners may determine, furnish to the officer of the Revenue Commissioners designated for that purpose a true and correct return of the amount of betting duty which became due by him or her during the previous month or such other period and shall at the same time remit to the Revenue Commissioners the amount of the duty, if any, payable by him or her in respect of that month or period.

71 Payment of duty with bet.

71.—(1) Without prejudice to the provisions of section 67, every bookmaker who makes, lays or otherwise enters into any bet, shall, at the time at which he or she accepts such bet from any person, require from such person an additional payment of an amount equal to the amount of the betting duty duly payable on the amount of that bet under section 67 unless the exemption from betting duty provided for in section 68 applies.

(2) Notwithstanding subsection (1) a bookmaker may by notice in writing to the Revenue Commissioners, elect to pay the amount of the betting duty on a class or classes of bets specified in the notice.

(3) Betting duty which a bookmaker has elected to pay to the Revenue Commissioners pursuant to subsection (2) shall not be allowed as a deduction by any person in computing the amount of profits or losses of a bookmaking business for Income Tax or Corporation Tax purposes.

72 Estimate of duty payable.

72.—(1) Where the Revenue Commissioners have reason to believe that a person was liable to remit betting duty in relation to any month or period and the person has not remitted any duty in relation to that month or period, they may—

(a) estimate the amount of duty which should have been remitted by the person in accordance with section 70 within the month or period specified by the Revenue Commissioners, and

(b) serve notice on the person of the amount so estimated.

(2) Where a notice is served under subsection (1) on a person, the following provisions shall apply:

(a) the person may, if he or she claims that he or she is a person who is not liable to remit any betting duty for the month or period to which the notice relates, appeal in accordance with sections 145 and 146 of the Finance Act, 2001, and the Appeal Commissioners decision shall be final and conclusive,

(b) on the expiration of the periods provided for in sections 145 and 146 of the Finance Act, 2001, if no appeal is lodged, or, if such an appeal has been lodged, on final determination of the Appeal Commissioners in respect of the appeal against the appellant, the estimated betting duty specified in the notice shall be recoverable in the same manner and by the like proceedings as if the person had furnished within the prescribed period a true and correct return for the month or period to which the estimate relates showing as due by him or her such estimated duty,

(c) if at any time after the service of the notice by the Revenue Commissioners under subsection (1) the person furnishes a return in respect of the month or period specified in the notice and pays the betting duty in accordance with the return, together with any interest and costs which may have been incurred in connection with the default, the notice shall stand discharged and any excess of betting duty which may have been paid shall be repaid,

(d) where action has been taken for recovery of betting duty specified in a notice issued under subsection (1), being action by way of the institution of proceedings in any court or the issue of a certificate under section 962 of the Taxes Consolidation Act, 1997, paragraph (c) shall not, unless the Revenue Commissioners otherwise direct, apply in relation to that notice until the said action has been completed.

(3) A notice given by the Revenue Commissioners under subsection (1) may extend to two or more months or periods.

73 Assessment of duty payable.

73.—(1) Where the Revenue Commissioners have reason to believe that the amount of betting duty due and payable to the Revenue Commissioners in respect of one or more months or periods by a person was greater than the amount of duty, if any, paid by him or her, then, without prejudice to any other action which may be taken, they may make an assessment in one sum of the total amount which in their opinion should have been paid, and may serve a notice on the person specifying—

(a) the total amount of the betting duty so assessed,

(b) the total amount of the duty, if any, paid by him or her in relation to the said period,

(c) the total amount so due and payable as aforesaid (having given credit for the amount of any duty referred to in paragraph (b)) and the amount so due and payable is referred to subsequently in this section as the “amount due”.

(2) Where a notice is served under subsection (1) on a person, the following provisions shall apply—

(a) the person may, if he or she claims that the amount due is excessive, appeal in accordance with sections 145 and 146 of the Finance Act, 2001, and

(b) if no notice of appeal is received, on the expiration of the periods provided for in sections 145 and 146 of the Finance Act, 2001, or, if notice of appeal is received, on the determination of the appeal by agreement or otherwise, the amount due or the amended amount due as determined in relation to the appeal, shall become due and payable as if the betting duty were duty which the person was liable to pay for the month or period or months or periods to which the notice relates.

(c) Where a person appeals an assessment under subsection (1) within the time limits provided for in subsection (2), he or she shall pay to the Revenue Commissioners the amount which he or she believes to be due, and if—

(i) the amount paid is greater than 80 per cent of the amount of the duty found to be due on the determination of the appeal, and

(ii) the balance of the amount found to be due on the determination of the appeal is paid within one month of the date of such determination, interest in accordance with section 74 shall not be chargeable from the date of raising of the assessment.

74 Interest on late payment.

74.—(1) Where any amount of betting duty becomes payable under section 67 and is not paid, simple interest on the amount shall be paid by the person liable to pay the duty and such interest shall be calculated from the date on which the amount became payable at a rate of 0.0322 per cent for each day or part of a day during which the amount remains unpaid.

(2) Subsection (1) shall apply—

(a) to duty recoverable by virtue of a notice under section 72 of this Chapter as if the duty were duty which the person was liable to pay for the respective month or period or months or periods specified in the notice, and

(b) to duty recoverable by virtue of a notice under section 73 as if (whether a notice of appeal under that section is received or not) the duty were duty which the person was liable to pay for the month or period or months or periods specified in the notice.

75 Recovery of duty.

75.—(1) (a) Without prejudice to any other mode of recovery the provisions of any enactment relating to the recovery of income tax and the provisions of any rule of court so relating shall apply subject to any necessary modifications to the recovery of excise duty payable in accordance with this Chapter and the regulations thereunder as they apply to recovery of income tax.

(b) In particular and without prejudice to the generality of paragraph (a), that paragraph applies the provisions of sections 962, 963, 964(1), 966, 967 and 968 of the Taxes Consolidation Act, 1997.

(c) Provisions as applied by this section shall so apply subject to any modification specified by regulations under this Chapter.

(2) In proceedings instituted for the recovery of any amount of duty under this section or any regulations made under this Chapter—

(a) a certificate signed by an officer of the Revenue Commissioners which certifies that a stated amount of betting duty is due and payable by the defendant shall be evidence, until the contrary is proved, that that amount is so due and payable, and

(b) a certificate certifying as aforesaid and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed, until the contrary is proved, to have been signed by an officer of the Revenue Commissioners.

(3) Any reference in the foregoing subsections to an amount of duty includes a reference to interest payable in the case in question under section 74.

(4) Subject to this section, the rules of the court concerned for the time being applicable to civil proceedings shall apply to proceedings by virtue of this section or any regulations under this Chapter.

(5) Where an order which was made before the coming into operation of this Chapter under section 2 of the Court Officers Act, 1945, contains a reference to levy under a certificate issued under section 962 of the Taxes Consolidation Act, 1997, that reference shall be construed as including a reference to levy under a certificate issued under the said section 962 as extended by this section.

76 Penalty for false statement.

76.—Any person who, in a return made by him or her to the Revenue Commissioners in relation to or for the purposes of the duty on bets imposed by section 67 of this Chapter, makes any statement or representation which is to his or her knowledge false or misleading, shall be guilty of an offence under this section and shall be liable on summary conviction thereof to an excise penalty of €1,900.

77 Regulations for payment of duty on bets.

77.—(1) The Revenue Commissioners may make regulations for securing the payment of betting duty and generally for carrying the provisions of this Act in relation to such duty into effect and in particular for—

(a) entering into arrangements with and taking security from bookmakers,

(b) providing for the submission of returns and payment of betting duty,

(c) requiring the maintenance and production by bookmakers of their books, accounts, vouchers, and other records relating to the bookmaking business carried out by them, and

(d) granting to bookmakers remissions or refunds (as the case may require) of betting duty in cases in which the whole or any part of the contingent liability of a bookmaker in respect of a bet made, laid, or otherwise entered into by him or her is shown to the satisfaction of the Revenue Commissioners to have been transferred by such bookmaker to another bookmaker (who is liable to pay the duty on the transferred bets) by means of a fresh bet made, laid, or otherwise entered into by the first-mentioned bookmaker with the second-mentioned bookmaker.

(2) Every person who contravenes or fails to comply with a regulation made under this section shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of €1,900.

78 De-registration of bookmaking premises.

78.—(1) Where, in respect of any registered premises, arrears of duty are due and owing or any return which is required by the Revenue Commissioners to be furnished in respect of the premises is not furnished within such period as is for the time being specified for that purpose, the Revenue Commissioners may cause a notice in writing to be sent to the registered proprietor of the said premises stating that, if the said arrears are not paid or the said returns are not furnished within seven days (or such greater period as the notice may specify) from the date on which the said notice is sent, the premises may be removed from the register under subsection (3).

(2) Any notice under subsection (1) shall be in such form as the Revenue Commissioners may prescribe and shall be sent by post to the registered proprietor as aforesaid at the registered premises to which it relates.

(3) If the arrears or the returns referred to in subsection (1) are not paid or furnished, as the case may be, within the period specified in a notice sent under that subsection, the Revenue Commissioners may, notwithstanding the provisions of section 12 of the Betting Act, 1931, remove from the register the registered premises to which the notice relates.

(4) Whenever any premises are removed from the register under subsection (3), the person who was the registered proprietor of such premises immediately before such removal shall, on demand in writing delivered at or sent by post to such premises, deliver or send to the Revenue Commissioners the latest certificate of registration of such premises issued under section 12 of the Betting Act, 1931, or the latest certificate of renewal of registration of such premises issued under the said section 12 or subsection (6), and a person who fails so to deliver or send such certificate within seven days after such demand shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of €1,900.

(5) (a) Subject to paragraph (b), where—

(i) all arrears of duty which are due and owing in respect of any premises which were removed from the register under subsection (3) are paid, and

(ii) all returns required by regulations made by the Revenue Commissioners to be furnished in respect of the premises are furnished,

the Revenue Commissioners shall, not later than seven days after the date on which the said arrears are paid and the said returns are furnished, renew the registration of the premises in the register and shall issue to the person who was the registered proprietor of the premises immediately before the premises were removed from the register a certificate in the prescribed form of such renewal of registration on payment of the excise duty referred to in paragraph (c).

(b) The registration of premises shall not be renewed under paragraph (a):

(i) on any date later than the 30th day of November next after the date on which the premises were last removed from the register under subsection (3), or

(ii) if any of the circumstances by reference to which premises would be removed from the register under section 17 of the Betting Act, 1931, exist in respect of the said premises at the time at which such renewal would otherwise be granted under paragraph (a).

(c) The duty of excise imposed by section 66, on the registration and on the renewal of the registration of any premises in which the business of bookmaking is carried on shall be charged in the sum of €2,000 on the renewal of the registration of premises in the register under this subsection and, notwithstanding section 12(3) of the Betting Act, 1931, the said renewal shall commence and take effect from the date on which the certificate of such renewal is issued by the Revenue Commissioners under paragraph (a).

(6)(a) A person shall not, in the course of carrying on business as a bookmaker or acting as a bookmaker, accept a bet in any premises which are not for the time being registered in the register.

(b) A person who accepts a bet in contravention of this subsection shall, without prejudice to any other penalty to which he or she may be liable, be guilty of an offence and shall be liable on summary conviction to an excise penalty of €1,900.

(c) This subsection shall not apply to a licensed bookmaker who is lawfully carrying on the business of a bookmaker at, or in the precincts of, an authorised racecourse, a greyhound race track or an authorised coursing meeting in accordance with the Irish Horseracing Industry Act, 1994 or the Greyhound Industry Act, 1958.

(7) Any person employed by the registered proprietor of registered premises as a clerk or assistant in those premises or any other person acting for or on behalf of the said proprietor who makes any entry on any slip or other record by means of which a bet is made, knowing that the said entry is false, or who substitutes for any such slip or record another document which is false, or who makes any entry in any book or record kept for the purpose of recording particulars of bets in the said premises knowing that the said entry is false or who is otherwise knowingly concerned or involved in the fraudulent evasion or an attempt at evasion of duty shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of €1,900.

79 Nomination of officers.

79.—The Revenue Commissioners may nominate any officer of the Revenue Commissioners to perform any acts and discharge any functions authorised by this Chapter to be performed or discharged by the Revenue Commissioners.

80 Repeals.

80.—The enactments set out in Schedule 3 are repealed to the extent mentioned in column (3) of that Schedule opposite the reference to the enactment concerned.

81 Saver.

81.—(1) In this section “repealed enactments” means the enactments repealed or revoked under section 80.

(2) If, and in so far as a provision of this Chapter operates, as and from the coming into operation of this Chapter, in substitution for a provision of the repealed enactments, any order or regulation made or having effect as if made, and anything done or having effect as if done, under the substituted provision before that day is to be treated on and from that day as if it were an order or regulation made or a thing done under the provision of this Chapter which so operates.

82 Continuity.

82.—(1) The provisions of this Chapter shall apply subject to so much of any Act which contains provisions relating to or affecting these excise duties as—

(a) is not repealed by this Chapter, and

(b) would have operated in relation to these duties if this Chapter had not been substituted for the repealed enactments.

(2) The continuity of the operation of the law relating to excise duties shall not be affected by the substitution of this Chapter for the repealed enactments.

(3) Any reference, whether express or implied, in any enactment or document (including this Chapter)—

(a) to any provision of this Chapter, or

(b) to things done or to be done under or for the purposes of any provision of this Chapter,

shall, if and in so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision in the repealed enactments applied or had applied, a reference to, or, as the case may be, to things done or to be done under or for the purposes of, that corresponding provision.

(4) Any reference, whether express or implied, in any enactment or document (including the repealed enactments and enactments passed and documents made)—

(a) to any provision of the repealed enactments, or

(b) to things done or to be done under or for the purposes of any provision of the repealed enactments,

shall, if and in so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision of this Chapter applies, a reference to, or as the case may be, to things done or deemed to be done or to be done under or for the purposes of, that corresponding provision.

(5) All officers who stood authorised or nominated for the purposes of any provision of the repealed enactments are deemed to be authorised or nominated, as the case may be for the purposes of the corresponding provision of this Chapter.

(6) All instruments, documents, authorisations and letters or notices of appointment made or issued under the repealed enactments and in force immediately before the commencement of this provision shall continue in force as if made or issued under this Chapter.

83 Commencement.

83.—This Chapter shall come into operation on 1 May 2002.

CHAPTER 2 Miscellaneous

84 Amendment of section 122 (permit and licence procedure) of Finance Act, 1992.

84.—Section 122 of the Finance Act, 1992, is amended by the insertion of the following after subsection (2):

“(3) Notwithstanding anything to the contrary in any other enactment, a permit shall not be granted or renewed by the Revenue Commissioners under this section in respect of any period commencing on or after 1 July 2000 unless a tax clearance certificate in relation to the permit or its renewal has been issued in accordance with section 1094 of the Taxes Consolidation Act, 1997.”.

85 Amendment of Finance Act, 1992, by insertion of new section (amusement machine permits).

85.—The Finance Act, 1992, is amended by the insertion after section 123 of the following new section:

“Rates of duty on permits.

123A.—(1) There shall be charged, levied and paid in respect of a permit granted under section 122 which commences after the coming into operation of this section a duty of excise of €100. (2) A permit granted by the Revenue Commissioners under section 122 shall expire— (a) in the case of a permit in force on the date of coming into operation of this section at midnight on 30 June next following its coming into operation, or (b) in the case of a permit granted after the coming into operation of this section at midnight on 30 June next following the grant of the permit. (3) A reference in section 122 or this section to the grant of a permit shall be construed as including a reference to the renewal of such a permit.”.

86 Amendment of section 49 of Finance (1909-10) Act, 1910 (grant of licences and date of expiration of licences).

86.—Section 49 of the Finance (1909-10) Act, 1910, is amended by the insertion, after subsection (1), of the following subsection:

“(1A) Notwithstanding subsection (1) or anything to the contrary in any other enactment, any licence commencing after the coming into operation of this subsection which is—

(a) a manufacturer's licence required by—

(i) a distiller of spirits,

(ii) a rectifier or compounder of spirits,

(iii) a brewer of beer for sale, or

(iv) a maker for sale of sweets,

(b) a beer retailer's on-licence,

(d) a sweets retailer's on-licence,

(e) a cider retailer's off-licence,

(f) a sweets retailer's off-licence,

(g) a railway restaurant car licence,

(h) a passenger vessel licence (annual),

(i) a passenger vessel licence (one day), or

(j) a passenger aircraft licence,

as is specified in the First Schedule to this Act, shall not be granted or renewed by the Revenue Commissioners unless a tax clearance certificate in relation to that licence has been issued in accordance with section 1094 of the Taxes Consolidation Act, 1997.”.

87 Amendment of section 136 (entry and search of premises) of Finance Act, 2001.

87.—Section 136 of the Finance Act, 2001, is amended—

(a) in subsection (1) by inserting the following paragraph after paragraph (b):

“(bb) bets liable to betting duty are reasonably believed to be accepted, or”,

and

(b) in paragraph (c) of subsection (1) by substituting “(a), (b) and (bb)” for “(a) and (b)”, and

“(e) exercise the powers of detention provided for under section 140.”.

88 Tobacco products.

88.—(1) In this section and in Schedule 4—

“Act of 1977” means the Finance (Excise Duty on Tobacco Products) Act, 1977;

“cigarettes”, “cigars”, “fine-cut tobacco for the rolling of cigarettes” and “smoking tobacco” have the same meanings as they have in the Act of 1977, as amended by section 86 of the Finance Act, 1997, and section 94 of this Act.

(2) The duty of excise on tobacco products imposed by section 2 of the Act of 1977 shall, in lieu of the several rates specified in Schedule 4 to the Finance Act, 2001, be charged, levied and paid—

(a) as on and from 6 December 2001, at the several rates specified in Part 1 of Schedule 4, and

(b) as on and from 1 January 2002, at the several rates specified in Part 2 of Schedule 4.

89 Rates of mineral oil tax.

89.—The Finance Act, 1999, is amended—

(a) with effect as on and from 6 December 2001, by substituting the following Schedule for Schedule 2 to that Act:

“SCHEDULE 2

With effect as on and from 6 December 2001

	Description of Mineral Oil	Rate of Duty
		£
	Light Oil:
	Leaded petrol	403.02 per 1,000 litres
	Unleaded petrol	316.10 per 1,000 litres
	Super unleaded petrol	398.88 per 1,000 litres
	Aviation gasoline	201.51 per 1,000 litres
	Heavy Oil:
	Used as a propellant	237.80 per 1,000 litres
	Kerosene used other than as a propellant	25.00 per 1,000 litres
	Fuel oil	10.60 per 1,000 litres
	Other heavy oil	37.30 per 1,000 litres
	Liquefied Petroleum Gas:
	Used as a propellant	41.75 per 1,000 litres
	Other liquefied petroleum gas	14.30 per 1,000 litres
	Substitute Fuel:
	Used as a propellant	237.80 per 1,000 litres
	Other substitute fuel	37.30 per 1,000 litres

”,

(b) with effect as on and from 1 January 2002, by substituting the following Schedule for Schedule 2 (inserted by subsection (a)) to that Act:

“SCHEDULE 2

With effect as on and from 1 January 2002

	Description of Mineral Oil	Rate of Duty
		€
	Light Oil:
	Leaded petrol	511.72 per 1,000 litres
	Unleaded petrol	401.36 per 1,000 litres
	Super unleaded petrol	506.47 per 1,000 litres
	Aviation gasoline	255.86 per 1,000 litres
	Heavy Oil:
	Used as a propellant	301.94 per 1,000 litres
	Kerosene used other than as a propellant	31.74 per 1,000 litres
	Fuel oil	13.45 per 1,000 litres
	Other heavy oil	47.36 per 1,000 litres
	Liquefied Petroleum Gas:
	Used as a propellant	53.01 per 1,000 litres
	Other liquefied petroleum gas	18.15 per 1,000 litres
	Substitute Fuel:
	Used as a propellant	301.94 per 1,000 litres
	Other substitute fuel	47.36 per 1,000 litres

”,

(c) with effect as on and from 1 March 2002, by substituting the following Schedule for Schedule 2 (inserted by subsection (b)) to that Act:

“SCHEDULE 2

With effect as on and from 1 March 2002

	Description of Mineral Oil	Rate of Duty
		€
	Light Oil:
	Leaded petrol	511.72 per 1,000 litres
	Unleaded petrol	401.36 per 1,000 litres
	Super unleaded petrol	506.47 per 1,000 litres
	Aviation gasoline	255.86 per 1,000 litres
	Heavy Oil:
	Used as a propellant with a maximum sulphur content of 50 milligrammes per kilogramme	301.94 per 1,000 litres
	Other heavy oil used as a propellant	354.33 per 1,000 litres
	Kerosene used other than as a propellant	31.74 per 1,000 litres
	Fuel oil	13.45 per 1,000 litres
	Other heavy oil	47.36 per 1,000 litres
	Liquefied Petroleum Gas:
	Used as a propellant	53.01 per 1,000 litres
	Other liquefied petroleum gas	18.15 per 1,000 litres
	Substitute Fuel:
	Used as a propellant	301.94 per 1,000 litres
	Other substitute fuel	47.36 per 1,000 litres

”.

90 Cider and perry.

90.—(1) In Schedule 5 “% vol” means the number of volumes of pure alcohol contained at a temperature of 20C in 100 volumes of the product at that temperature.

(2) The duty of excise on cider and perry imposed by paragraph 8(2) of the Imposition of Duties (No. 221) (Excise Duties) Order 1975 (S.I. No. 307 of 1975), shall, in lieu of the several rates specified in the Fourth Schedule to the Finance Act, 1994, be charged, levied and paid—

(a) as on and from 6 December 2001, at the several rates specified in Part 1 of Schedule 5, and

(b) as on and from 1 January 2002, at the several rates specified in Part 2 of Schedule 5.

91 Amendment of section 98 (horticultural production) of Finance Act, 1999.

91.—Section 98 of the Finance Act, 1999, is amended by substituting the following subsection for subsection (2):

“(2)(a) Claims for repayment under subsection (1) shall be made in such form as the Commissioners may direct and shall be in respect of mineral oil used within a period of not less than one and not more than 6 calendar months.

(b) A repayment under subsection (1) may not be made unless the claim is made within 4 months following the end of each such period or within such longer period as the Commissioners may, in any particular case, allow.”.

92 Amendment of section 100 (relief from mineral oil tax for certain mineral oils) of Finance Act, 1999.

92.—Section 100 of the Finance Act, 1999, is amended by substituting the following subsection for subsection (3):

“(3)(a) Claims for remission or repayment under subsection (2) shall be made in such form as the Commissioners may direct and shall be in respect of oil used within a period of not less than one and not more than 6 calendar months.

(b) A repayment under subsection (2) may not be made unless the claim is made within 4 months following the end of each such period or within such longer period as the Commissioners may, in any particular case, allow.”.

93 Passenger road services.

93.—(1) The Finance Act, 1999, is amended in Chapter 1 of Part 2 by substituting the following section for section 99:

“99.—(1) Where a person who—

(a) carries on a passenger road service within the meaning of section 2 of the Road Transport Act, 1932, pursuant to a passenger licence granted under section 11 of that Act.

(b) lawfully carries on, other than pursuant to such a licence, such a passenger road service,

(d) carries on a passenger road service or provides a school transport service pursuant to an agreement with a person to whom and in respect of such service to which paragraph (a), (b) or (c), as may be appropriate, applies, or

(e) subject to subsection (2), carries for reward tourists by road under contracts for group transport,

shows to the satisfaction of the Commissioners that heavy oil on which mineral oil tax has been paid has been used by such person for combustion in the engine of a mechanically propelled vehicle, on the route travelled by such vehicle in the course of providing such service or in the course of such carriage of tourists, the Commissioners shall, subject to compliance with such conditions as they may think fit, repay to such person the amount of mineral oil tax paid less an amount calculated at the rate of €22.72 per 1,000 litres on such mineral oil so used.

(2) Repayments in respect of the carriage of tourists referred to in paragraph (e) of subsection (1) shall be made only where—

(a) such carriage is under a contract for a tour over a period of at least three days, and which includes the provision of accommodation for each night during that period for all tourists carried, and

(b) the vehicle used in the course of providing such carriage is—

(i) a single-deck touring coach having dimensions as designated by the manufacturer of not less than 2,700 millimetres in height, not less than 8,000 millimetres in length, not less than 950 millimetres in floor height and with an underfloor luggage capacity of not less than 3 cubic metres, or

(ii) a double-deck touring coach having dimensions as designated by the manufacturer of not more than 4,300 millimetres in height and not less than 10,000 millimetres in length.

(3)(a) Claims for repayment under subsection (1) shall be made in such form as the Commissioners may direct and shall be in respect of oil used within a period of not less than one and not more than 6 calendar months.

(4) Where a person has obligations under the Acts within the meaning of subsection (3) of section 1095 of the Taxes Consolidation Act, 1997, a repayment under subsection (1) may not be made to such person unless a current tax clearance certificate, valid on the date of authorisation of such repayment, has been issued to such person in accordance with that section.”.

(2) This section shall come into operation on such day as the Minister for Finance may by order appoint.

94 Amendment of section 1 (interpretation) of Finance (Excise Duty on Tobacco Products) Act, 1977.

94.—(1) Section 1 of the Finance (Excise Duty on Tobacco Products) Act, 1977, is amended—

(a) in subsection (1)—

(i) by substituting “section 96 of the Finance Act, 2001” for “section 103(1) of the Finance Act, 1992” in the definition of “Community”, and

(ii) by substituting the following for the definition of “cigars” (inserted by section 86 of the Finance Act, 1997):

“‘cigars’ means—

(a) rolls of tobacco made entirely of natural tobacco,

(b) rolls of tobacco with an outer wrapper of natural tobacco,

(i) a threshed blend filler, and

(ii) an outer wrapper of the normal colour of a cigar covering the product in full, including where appropriate the filter but not, in the case of tipped cigars, the tip and a binder, both being of reconstituted tobacco,

where the unit weight, excluding the filter or mouth-piece, is not less than 1.2 grammes and where the wrapper is fitted in spiral form with an acute angle of at least 30 degrees to the longitudinal axis of the cigar,

(d) rolls of tobacco with—

(i) a threshed blend filler, and

(ii) an outer wrapper of the normal colour of a cigar of reconstituted tobacco, covering the product in full, including where appropriate the filter but not, in the case of tipped cigars, the tip,

where the unit weight, excluding the filter or mouth-piece, is not less than 2.3 grammes and the circumference over at least one-third of the length is not less than 34 millimetres,

(e) products consisting in part of substances other than tobacco but otherwise conforming to the criteria set out in paragraph (a), (b), (c) or (d) provided they have:

(i) a wrapper of natural tobacco,

(ii) a wrapper and binder both of reconstituted tobacco, or

(iii) a wrapper of reconstituted tobacco,

and to which Council Directive No. 95/59/EC of 27 November 1995[^1] (as amended) relates;”,

and

(b) in subsection (1A)—

(i) by substituting “suspension arrangement” for “duty-suspension arrangement”, and

(ii) by substituting “Part 2 of the Finance Act, 2001” for “Chapter II of Part II of the Finance Act, 1992”.

(2) Subsection (1)(a)(ii) shall come into operation on such day as the Minister for Finance may appoint by order.

95 Amendment of section 2B (sale of cigarettes) of Finance (Excise Duty on Tobacco Products) Act, 1977.

95.—The Finance (Excise Duty on Tobacco Products) Act, 1977, is amended in subsection (1) (as amended by section 79 of the Finance Act, 1995) of section 2B (inserted by section 70 of the Finance Act, 1994)—

(a) in paragraph (a) by substituting “section 104(2) of the Finance Act, 2001” for “subsection (2) of section 106 of the Finance Act, 1992”, and

(b) in paragraph (b) by substituting “suspension arrangement” for “duty-suspension arrangement”.

96 Amendment of section 7 of Finance (Excise Duty on Tobacco Products) Act, 1977.

96.—Section 7 of the Finance (Excise Duty on Tobacco Products) Act, 1977, is amended in subsection (3)(c) (inserted by section 84 of the Finance Act, 1996) by substituting “5 cent” for “five pence”.

97 Amendment of section 10A (offences in relation to tax stamps) of Finance (Excise Duty on Tobacco Products) Act, 1977.

97.—The Finance (Excise Duty on Tobacco Products) Act, 1977, is amended in section 10A (inserted by section 74 of the Finance Act, 1994)—

(a) in subsection (1) (as amended by section 82 of the Finance Act, 1995, section 85 of the Finance Act, 1996 and section 87 of the Finance Act, 1997) by substituting “suspension arrangement” for “duty-suspension arrangement”, and

(b) in subsection (4)(b)(ii) (inserted by section 158 of the Finance Act, 2001) by substituting “suspension arrangement” for “duty-suspension arrangement”.

PART 3 Value-Added Tax

98 Interpretation (Part 3).

98.—In this Part “the Principal Act” means the Value-Added Tax Act, 1972.

99 Amendment of section 4 (special provisions in relation to the supply of immovable goods) of Principal Act.

99.—Section 4 of the Principal Act is amended by the insertion of the following subsection after subsection (3)—

“(3A)(a) Where a person having an interest in immovable goods to which this section applies surrenders possession of those goods or of any part of them by means of a disposal of that interest or of an interest which derives from that interest, and where the value of the interest being disposed of is less than its economic value then for the purposes of this Act such disposal—

(i) shall be deemed not to be a supply of immovable goods for the purposes of subsection (2), but

(ii) shall be deemed to be a letting of immovable goods to which paragraph (iv) of the First Schedule applies.

(b) This subsection does not apply to the disposal of a freehold interest.

(c) Where a person establishes to the satisfaction of the Revenue Commissioners that the value of an interest in immovable goods being disposed of by such person is less than the economic value of those immovable goods because of an unforeseen change in market conditions affecting the value of that interest since such person acquired and developed those goods, then the Revenue Commissioners may determine that that disposal be treated as a supply of immovable goods for the purposes of subsection (2).

(d) For the purposes of this subsection—

‘economic value’, in relation to an interest in immovable goods being disposed of, means the amount on which tax was chargeable to the person disposing of that interest in respect of that person's acquisition of that interest and in respect of any development of those immovable goods by or on behalf of that person since that acquisition; but if—

(i) there was no development of those immovable goods by or on behalf of that person since that person's acquisition of that interest, and

(ii) that person disposes, including by way of surrender or assignment, of an interest (in this subsection referred to as a ‘lesser interest’) which is derived from the interest which that person acquired (in this subsection referred to as a ‘greater interest’), and

(iii) the lesser interest is an interest of not more than 35 years,

then the economic value of the lesser interest shall be deemed to be the amount calculated in accordance with the following formula:

	E	N1
	N2

where—

E is the economic value of the greater interest,

N1 is the number of full years in the lesser interest, and

N2 is the number of full years in the greater interest, but if the number of full years in the greater interest exceeds 35 or if the greater interest is a freehold interest then N2 shall be deemed to be equal to 35,

but where—

(I) the disposal of the lesser interest is not a disposal by way of surrender or assignment, and

(II) the amount so calculated is less than 75 per cent of the economic value of the greater interest,

then the economic value of the lesser interest shall be deemed to be 75 per cent of the economic value of the greater interest;

‘the value of an interest being disposed of’ means the amount on which tax would be chargeable in accordance with section 10 if that disposal were deemed to be a supply of immovable goods in accordance with subsection (2).”.

100 Amendment of section 7 (waiver of exemption) of Principal Act.

100.—Section 7 of the Principal Act is amended in subsection (1)—

(a) by renumbering that subsection as paragraph (a) of subsection (1), and

(b) by inserting the following after paragraph (a):

“(b) A waiver of exemption from tax under this subsection shall not apply or be extended to any disposal of an interest in immovable goods which is deemed to be a letting of immovable goods to which paragraph (iv) of the First Schedule applies by virtue of section 4(3A)(a)(ii).”.

101 Amendment of section 8 (taxable persons) of Principal Act.

101.—Section 8 of the Principal Act is amended—

(a) by adding in subsection (1) “, but a person not established in the State who supplies a service in the State in the circumstances set out in subsection (2)(aa) shall not be a taxable person and shall not be accountable for or liable to pay the tax chargeable in respect of such supply” after “in respect of such supply”,

(b) in subsection (2)—

(i) by inserting the following after paragraph (a):

“(aa) Where a person not established in the State supplies a cultural, artistic, entertainment or similar service in the State, then any person, other than a person acting in a private capacity, who receives that service shall-

(i) in relation to it, be a taxable person or be deemed to be a taxable person, and

(ii) be liable to pay the tax chargeable as if that taxable person had in fact supplied the service for consideration in the course or furtherance of business;

but where that service is commissioned or procured by a promoter, agent or other person not being a person acting in a private capacity, then that promoter, agent or person shall be deemed to be the person who receives the service.

(ab) Where the person who receives the services referred to in paragraph (aa) is a body that has received funding from the Arts Council in the 3 years prior to the passing of the Finance Act, 2002, the Revenue Commissioners may, at the request of such body, authorise the application of that paragraph in respect of such services received by that body to be deferred to a time not later than 1 March 2003.”,

and

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

“(d) (i) Where a person who owns, occupies or controls land (in this subsection referred to as a ‘premises provider’) allows, in the course or furtherance of business, a person not established in the State to supply goods for consideration in the course or furtherance of business (in this subsection referred to as a ‘mobile trader’) on that land for a period of less than seven consecutive days, then the premises provider shall, not later than fourteen days before the day when the mobile trader is allowed to supply goods on that land, furnish to the Revenue Commissioners, at the office of the Revenue Commissioners which would normally deal with the examination of the records kept by the premises provider in accordance with section 16, the following particulars—

(I) the name and address of the mobile trader,

(II) the dates on which the mobile trader intends to supply goods on the premises provider's land,

(III) the address of the land referred to in clause (II), and

(IV) any other information as may be specified in regulations.

(ii) Where a premises provider allows, in the course or furtherance of business, a promoter not established in the State to supply on the premises provider's land a cultural, artistic, entertainment or similar service which in accordance with section (2)(aa) is deemed to be supplied by that promoter, then the premises provider shall, not later than fourteen days before such service is scheduled to begin, furnish to the Revenue Commissioners, at the office of the Revenue Commissioners which would normally deal with the examination of the records kept by the premises provider in accordance with section 16, the following particulars—

(I) the name and address of the promoter,

(II) details, including the dates, duration and venue, of the event or performance commissioned or procured by the promoter in the provision of that service, and

(III) any other information as may be specified in regulations.

(iii) Where a premises provider fails to provide to the Revenue Commissioners true and correct particulars as required in accordance with subparagraph (i) or (ii), then the Revenue Commissioners may, where it appears necessary to them to do so for the protection of the revenue, make such premises provider jointly and severally liable with a mobile trader or promoter, as the case may be, for the tax chargeable in respect of supplies made by that mobile trader or promoter on the premises provider's land, and in those circumstances the Revenue Commissioners shall notify the premises provider in writing accordingly.

(iv) A premises provider who has been notified in accordance with subparagraph (iii) shall be deemed to be a taxable person and shall be liable to pay the tax referred to in that subparagraph as if it were tax due in accordance with section 19 by the premises provider for the taxable period within which the supplies are made by the mobile trader or promoter, but the premises provider shall not be liable to pay tax referred to in subparagraph (iii) which the Revenue Commissioners are satisfied was accounted for by a mobile trader or promoter.”,

and

(i) by adding in paragraph (a)(i) “and the persons so notified shall be regarded as being in a group for as long as this paragraph applies to them,” after “accordingly,”, and

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

“(d) Where a person in a group (in this subsection referred to as the ‘landlord’) having acquired an interest in, or developed, immovable goods to which section 4 applies, whether such acquisition or development occurred before or after the landlord became a person in the group, subsequently surrenders possession of those immovable goods, or any part of them, to another person in the group (in this subsection referred to as the ‘occupant’) where the surrender of possession if it were to a person not in the group would not constitute a supply of immovable goods in accordance with section 4, and either the landlord or the occupant subsequently ceases to be a person in the group (in this subsection referred to as a ‘cessation’) then, if that landlord does not have a waiver of his or her right to exemption from tax in accordance with section 7 still in effect at the time of the cessation—

(i) the surrender of possession, or

(ii) if that landlord surrendered possession of those immovable goods more than once to another person in the group, the first such surrender of possession,

shall be deemed to occur when that first such cessation takes place, but if such a landlord's waiver of his or her right to exemption from tax in accordance with section 7 has been cancelled before a surrender of possession of immovable goods to another person in the group ends, that surrender of possession shall be deemed to take place on the date of the said first such cessation.”.

102 Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

102.—Section 10 of the Principal Act is amended—

(a) by substituting in subsection (6) “Subject to subsection (6A), where” for “Where”,

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

“(6A) Notwithstanding the provisions of subsection (6), where—

(a) a supplier—

(i) supplies a token, stamp, coupon or voucher, which has an amount stated on it, to a person who acquires it in the course or furtherance of business with a view to resale, and

(ii) promises to subsequently accept that token, stamp, coupon or voucher at its face value in full or part payment of the price of goods,

and

(b) a person who acquires that token, stamp, coupon or voucher, whether from the supplier referred to in paragraph (a) or from any other person in the course or furtherance of business, supplies it for consideration in the course or furtherance of business,

then in the case of each such supply the consideration received shall not be disregarded for the purposes of this Act and when such token, stamp, coupon or voucher is used in payment or part payment of the price of goods, the face value of it shall, for the purposes of section 10(2), be disregarded.”,

and

103 Amendment of section 11 (rates of tax) of Principal Act.

103.—Section 11(1)(a) of the Principal Act is amended by substituting “21 per cent” for “20 per cent” (inserted by the Finance Act, 2001).

104 Amendment of section 12D (adjustment of tax deductible in certain circumstances) of Principal Act.

104.—Section 12D of the Principal Act is amended in subsection (4) by substituting “calculate an amount which shall be payable as if it were tax due by that person in accordance with section 19 for the taxable period within which the transfer was made, and that amount shall be calculated” for “reduce the amount of tax deductible by that person, for the purposes of section 12, for the period within which the transfer was made, by an amount calculated”.

105 Amendment of section 13 (remission of tax on goods exported, etc.) of Principal Act.

105.—Section 13 of the Principal Act is amended in subsection (3)(b) by adding “other than services for which in accordance with section 8(2) the person who receives them is solely liable for the tax chargeable” after “in the State”.

106 Amendment of section 19 (tax due and payable) of Principal Act.

106.—Section 19 of the Principal Act is amended—

(a) in subsection (2) by inserting “However this subsection does not apply to the tax chargeable in respect of supplies of goods or services where tax is due in accordance with paragraph (a) or (b) of subsection (1) by a taxable person who is not authorised under section 14 to account for tax due by reference to the amount of the moneys received during a taxable period or part thereof.” after “at the time of such receipt.”, and

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

“(d) (i) A return required to be furnished by a taxable person under this subsection may be furnished by the taxable person or another person acting under the taxable person's authority for that purpose and a return purporting to be a return furnished by a person acting under a taxable person's authority shall be deemed to be a return furnished by the taxable person, unless the contrary is proved.

(ii) Where a return in accordance with paragraph (i) is furnished by a person acting under a taxable person's authority the provisions of any enactment relating to value-added tax shall apply as if it had been furnished by the taxable person.”.

107 Letter of expression of doubt.

107.—The Principal Act is amended by inserting the following section after section 19A—

“19B.—(1) (a) Where a taxable person is in doubt as to the correct application of any enactment relating to value-added tax (in this section referred to as ‘the law’) to a transaction which could give rise to a liability to tax by that person or affect that person's liability to tax or entitlement to a deduction or refund of tax, then that taxable person may, at the same time as the taxable person furnishes to the Collector-General the return due in accordance with section 19 for the period in which the transaction occurred, lodge a letter of expression of doubt with the Revenue Commissioners at the office of the Revenue Commissioners which would normally deal with the examination of the records kept by that person in accordance with section 16, but this section shall only apply if that return is furnished within the time limits prescribed in section 19.

(b) For the purposes of this section ‘letter of expression of doubt’ means a communication received in legible form which—

(i) sets out full details of the circumstances of the transaction and makes reference to the provisions of the law giving rise to the doubt,

(ii) identifies the amount of tax in doubt in respect of the taxable period to which the expression of doubt relates,

(iii) is accompanied by supporting documentation as relevant, and

(iv) is clearly identified as a letter of expression of doubt for the purposes of this section,

and reference to an expression of doubt shall be construed accordingly.

(2) Subject to subsection (3), where a return and a letter of expression of doubt relating to a transaction are furnished by a taxable person to the Revenue Commissioners in accordance with this section, the provisions of section 21 shall not apply to any additional liability arising from a notification to that person by the Revenue Commissioners of the correct application of the law to the said transaction, on condition that such additional liability is accounted for and remitted to the Collector-General by the taxable person as if it were tax due for the taxable period in which the notification is issued.

(3) Subsection (2) does not apply where the Revenue Commissioners do not accept as genuine an expression of doubt in respect of the application of the law to a transaction, and an expression of doubt shall not be accepted as genuine in particular where the Revenue Commissioners—

(a) have issued general guidelines concerning the application of the law in similar circumstances,

(b) are of the opinion that the matter is otherwise sufficiently free from doubt as not to warrant an expression of doubt, or

(4) Where the Revenue Commissioners do not accept an expression of doubt as genuine they shall notify the taxable person accordingly, and the taxable person shall account for any tax, which was not correctly accounted for in the return referred to in subsection (1), as tax due for the taxable period in which the transaction occurred, and the provisions of section 21 shall apply accordingly.

(5) A taxable person who is aggrieved by a decision of the Revenue Commissioners that that person's expression of doubt is not genuine may, by giving notice in writing to the Revenue Commissioners within the period of twenty-one days after the notification of the said decision, require the matter to be referred to the Appeal Commissioners.

(6) A letter of expression of doubt shall be deemed not to have been made unless its receipt is acknowledged by the Revenue Commissioners and that acknowledgement forms part of the records kept by the taxable person for the purposes of section 16.

(7) (a) For the purposes of this section ‘taxable person’ includes a person who is not a registered person and is in doubt as to whether he or she is a taxable person in respect of a transaction and in that case references to a return and records are to be construed as referring to a return that would be due under section 19 and records that would be kept for the purposes of section 16, if that person were in fact a taxable person.

(b) A person whose expression of doubt concerns whether he or she is a taxable person shall lodge that expression of doubt for the purposes of applying subsection (2) not later than the nineteenth day of the month following the taxable period in which the transaction giving rise to the expression of doubt occurred.”.

108 Amendment of section 21 (interest) of Principal Act.

108.—Section 21 of the Principal Act is amended by substituting the following subsection for subsection (1)—

“(1) (a) Where any amount of tax becomes payable under section 19(3) and is not paid, simple interest on the amount shall be paid by the taxable person, and such interest shall be calculated from the date on which the amount became payable and at a rate of 0.0322 per cent for each day or part of a day during which the amount remains unpaid.

(b) Where an amount of tax is refunded to a person and where—

(i) no amount of tax was properly refundable to that person under section 20(1), or

(ii) the amount of tax refunded is greater than the amount properly refundable to that person under section 20(1),

simple interest shall be paid by that person on any amount of tax refunded to that person which was not properly refundable to that person under section 20(1), from the date the refund was made, at the rate of 0.0322 per cent for each day or part of a day during which the person does not correctly account for any such amount refunded which was not properly refundable.”.

109 Amendment of section 25 (appeals) of Principal Act.

109.—Section 25 of the Principal Act is amended in subsection (1)—

(a) by deleting paragraph (ab), and

(b) by inserting the following after paragraph (ad):

“(ae) the treatment of a person who allows supplies to be made on land owned, occupied or controlled by that person, as jointly and severally liable with another person, in accordance with section 8(2)(d),

(af) the application of section 4(3A)(c),”.

110 Amendment of First Schedule to Principal Act.

110.—The First Schedule to the Principal Act is amended by inserting the following after paragraph (xv):

“(xva) The acceptance of totalisator bets—

(a) by a person or a body of persons operating under a licence granted under the Totalisator Act, 1929, or

(b) by a licensed bookmaker acting in accordance with the provisions of section 19A(a) of the Betting Act, 1931 (inserted by the Horse and Greyhound Racing Act, 2001);”.

PART 4 Stamp Duties

111 Interpretation (Part 4).

111.—In this Part “Principal Act” means the Stamp Duties Consolidation Act, 1999.

112 Amendment of section 76 (obligations of system-members) of Principal Act.

112.—(1) Section 76 of the Principal Act is amended in subsection (1) by substituting “6 years” for “3 years”.

(2) Subsection (1) has effect in relation to instructions entered or caused to be entered in a relevant system by a system-member on or after the passing of this Act.

113 Amendment of Chapter 2 of Part 7 of Principal Act.

113.—(1) Chapter 2 of Part 7 of the Principal Act is amended—

(a) in section 92A by inserting the following subsections after subsection (6):

“(7) Notwithstanding subsection (2), subsection (3) shall not apply to an instrument to which subsection (1) applied and which was executed before 6 December 2001 to the extent that any rent or payment in the nature of rent is derived on or after 6 December 2001, for the use of the dwellinghouse or apartment or any part of the dwellinghouse or apartment.

(8) This section shall not apply to an instrument executed on or after 6 December 2001.”,

(b) in section 92B by substituting the following for subsection (2):

“(2) The amount of stamp duty chargeable under or by reference to paragraphs (2) to (5) of the Heading ‘CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance’ or clauses (ii) to (v) of paragraph (3)(a) of the Heading ‘LEASE’, as the case may be, in Schedule 1 on any instrument to which this section applies shall be reduced, where paragraph (2) or clause (ii) applies, to nil, and where—

(a) paragraph (3) or clause (iii) applies, to an amount equal to three-fourths,

(b) paragraph (4) or clause (iv) applies, to an amount equal to three and three quarter-fifths,

of the amount which would otherwise have been chargeable but where the amount so obtained is a fraction of €1 that amount shall be rounded down to the nearest €.”,

and

(2)(a) Paragraph (a) of subsection (1) is deemed to have applied as on and from 6 December 2001.

(b) Paragraph (b) of subsection (1) has effect in relation to instruments executed on or after 6 December 2001 subject to substituting, in subsection (2) of section 92B (inserted by subsection (1)), “£1” for “€1” and “up to the nearest £” for “down to the nearest €” for instruments executed on or after 6 December 2001 and before 1 January 2002.

114 Amendment of Schedule 1 to Principal Act.

114.—(1) Schedule 1 to the Principal Act is amended—

(a) under the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance”—

(i) in paragraph (1) by substituting—

“exceeds €127,000:

for the consideration which is attributable to

residential property .........Exempt.”

for

“exceeds €127,000 ....................9 per cent of the consideration which is attributable to residential property but where the calculation results in an amount which is not a multiple of €1 the amount so calculated shall be rounded down to the nearest €.”,

(ii) in paragraph (2) by substituting “3 per cent” for “9 per cent”,

(iii) in paragraph (3) by substituting “4 per cent” for “9 per cent”,

(iv) in paragraph (4) by substituting “5 per cent” for “9 per cent”,

(v) in paragraph (5) by substituting “6 per cent” for “9 per cent”, and

(vi) in paragraph (6) by substituting “7.5 per cent” for “9 per cent”,

(b) under the Heading “LEASE”—

(i) in clause (i) of paragraph (3)(a) by substituting—

“exceeds €127,000:

for the consideration which is attributable to

residential property .........Exempt.”

for

(ii) in clause (ii) of paragraph (3)(a) by substituting “3 per cent” for “9 per cent”,

(iii) in clause (iii) of paragraph (3)(a) by substituting “4 per cent” for “9 per cent”,

(iv) in clause (iv) of paragraph (3)(a) by substituting “5 per cent” for “9 per cent”,

(v) in clause (v) of paragraph (3)(a) by substituting “6 per cent” for “9 per cent”, and

(vi) in clause (vi) of paragraph (3)(a) by substituting “7.5 per cent” for “9 per cent”.

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