Finance Act 2012

36.— (1) Part 8 of the Principal Act is amended—

(a) in section 256(1) in the definition of “appropriate tax”—

(i) in paragraph (a) by substituting “30 per cent” for “27 per cent”,

(ii) in paragraph (b) by substituting “30 per cent” for “27 per cent”, and

(iii) in paragraph (c) by substituting “33 per cent” for “30 per cent”,

(b) in section 256(1) by inserting the following after the definition of “pension scheme”:

“ ‘Personal Retirement Savings Account’ has the same meaning as in section 787A;”,

(c) in section 256(1) by substituting the following for paragraph (k) of the definition of “relevant deposit”—

“(k) which is made by a PRSA provider and which is held for the purposes of a Personal Retirement Savings Account, where the PRSA provider has provided the relevant deposit taker with the number assigned to that provider by the Revenue Commissioners;”,

(d) in section 267B—

(i) in subsection (2)(b) by substituting “30 per cent” for “27 per cent”, and

(ii) in subsection (3)(b) by substituting “30 per cent” for “27 per cent”,

(e) in section 267F by deleting subsection (2),

(f) in the title to Chapter 7 by substituting “outside the State” for “within the European Communities”,

(g) in section 267M(1) by inserting the following before the definition of “specified interest”—

“ ‘foreign deposit interest’ means interest arising in a foreign territory which would be interest payable in respect of a relevant deposit within the meaning of section 256(1) if—

(a) paragraphs (c), (d) and (g) of the definition of ‘relevant deposit’ in section 256(1) were deleted, and

(b) there were included in the definition of ‘relevant deposit taker’ in section 256(1), bodies—

(i) established in accordance with the law of a foreign territory, and

(ii) authorised under the laws of that foreign territory to accept deposits of money;

‘foreign territory’ means a territory other than a Member State of the European Communities;”,

and

(h) in section 267M by substituting the following for subsection (2)—

“(2) (a) Notwithstanding section 15 and subject to paragraph (b), where the taxable income of an individual includes—

(i) specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate specified in paragraph (b) of the definition of ‘appropriate tax’ in section 256(1), or

(ii) foreign deposit interest, so much of the part of taxable income, equal to that foreign deposit interest, as would otherwise be chargeable to tax at the standard rate, shall instead be chargeable to tax at the rate specified in paragraph (b) of the definition of ‘appropriate tax’ in section 256(1).

(b) Paragraph (a) shall not apply where any liability of the individual for a year of assessment in respect of the specified interest or foreign deposit interest, as the case may be, has not been discharged on or before the specified return date for the chargeable period (within the meaning of section 950) for that year, and where that paragraph does not apply, the part of taxable income, equal to that specified interest or that foreign deposit interest, shall be chargeable to tax at the rate of tax described in the Table to section 15 as the higher rate.”.

(2) (a) Paragraphs (a) to (e) of subsection (1) apply to any payment or crediting of relevant interest (within the meaning of Chapter 4 of Part 8 of the Principal Act) made on or after 1 January 2012.

(b) Paragraphs (f) to (h) of subsection (1) apply to foreign deposit interest or specified interest (both within the meaning of section 267M(1) (as amended by subsection (1) (g)) of the Principal Act), as the case may be, which is received on or after 8 February 2012.

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

37.— Part 8A of the Principal Act is amended—

(a) in section 267N by substituting the following for the definition of “finance company”:

“ ‘finance company’ means a company whose income consists wholly or mainly of either or both of the following—

(a) income from the leasing of machinery or plant, and

(b) income from the carrying on of specified financial transactions;”,

and

(b) by substituting the following for section 267U:

“267U.— (1) This Part applies to a specified financial transaction where a person who is—

(a) a party to the transaction, and

(b) within the charge to tax,

makes an election in writing to the inspector (within the meaning of section 950) that this Part applies to that transaction.

(2) An election under this section—

(a) shall be made in a form approved by the Revenue Commissioners and containing such particulars relating to the transaction concerned, and the parties to that transaction, as may be specified in that form, and

(b) may be made either in respect of an individual transaction or in respect of a series of transactions of a similar nature.

(3) Where an election is made in accordance with this section—

(a) this Part applies to that transaction or series of transactions, and

(b) the party making the election shall notify any other person who is a party to a specified financial transaction, that the transaction is a specified financial transaction.”.

38. Withholding tax relating to certain dividends and interest.

38.— (1) The Principal Act is amended—

(a) in section 33(1) by deleting “shall be charged by the Commissioners designated for that purpose by the Income Tax Acts, and”,

(b) in section 64(5) by substituting the following for paragraph (c):

“(c) if in paragraph 1A of Part 1 of Schedule 2, clauses (1) and (2) of the definition of ‘chargeable person’ were deleted.”,

(c) by deleting section 853,

(d) in Part 1 of Schedule 2 by inserting the following after paragraph 1:

“1A. In this Schedule—

‘chargeable person’ means any of the following:

(a) a person who is entrusted with the payment of any dividends which are payable to any persons in the State out of any public revenue;

(b) a person in the State who is entrusted with the payment of any dividends to which Chapter 2 of Part 4 applies;

(c) a banker or other person in the State who obtains payment of any dividends in such circumstances that the dividends are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;

(d) a banker in the State who sells or otherwise realises coupons in such manner that the proceeds of the sale or realisation are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;

(e) a dealer in coupons in the State who purchases coupons in such manner that the price paid on the purchase is chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;

‘specified dividend income’ means—

(a) the amount of dividends which are payable to any person in the State out of any public revenue,

(b) the amount of dividends to which Chapter 2 of Part 4 applies,

(c) the amount of dividends received by a chargeable person in the State in such circumstances that the dividends are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D,

(d) the proceeds of sale or realisation of coupons where those proceeds are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D, or

(e) the price paid on purchase of coupons where such price paid on purchase is chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D.”,

(e) by deleting Parts 2 and 3 of Schedule 2,

(f) by substituting the following for Part 4 of Schedule 2—

“PART 4

(2) The payment of the income tax by the chargeable person shall be deemed to be a payment of the income tax by the persons entitled to the specified dividend income and shall be allowed by those persons on the receipt of the residue of the dividends.

(2) The income tax in relation to payments of specified dividend income which is required to be included in a return shall—

(a) be due at the time by which the return is to be made, and

(b) be paid by the chargeable person to the Collector-General,

and the income tax so due shall be payable by the chargeable person without the making of an assessment; but income tax which has become so due may be assessed on the chargeable person (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.

(3) A return due under this Schedule shall be in a form prescribed by the Revenue Commissioners and shall include a declaration to the effect that the return is correct and complete.

(2) Any income tax assessed on a chargeable person under this Schedule shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under paragraph 15) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under paragraph 15.

(3) On the determination of an appeal against an assessment under this Chapter, any income tax overpaid shall be repaid.

(a) the name and address of each such person,

(b) particulars of the amounts payable, and

(c) in the case of amounts payable out of any public revenue, particulars of the public revenue out of which each separate amount is payable.

(2) Records kept by a chargeable person in accordance with subparagraph (1) shall—

(a) be kept and retained by the chargeable person for a period of 6 years from the day on which the payment was made, and

(b) on being required by notice in writing given to the chargeable person by an inspector, be made available to the inspector within the time specified in the notice.

(a) books and records were a reference to books and records kept for the purposes of this Schedule,

(b) an authorised officer in that section were a reference to a Revenue officer as defined in section 898B, and

(c) a reference in that section to a paying agent were a reference to a chargeable person.

(a) assessments to income tax,

(b) appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and

(c) the collection and recovery of income tax,

shall, in so far as they are applicable, apply to the assessment, collection and recovery of income tax due under this Schedule.

(2) Subsections (3) to (5) of section 1080 shall apply in relation to interest payable under subparagraph (1) as they apply in relation to interest payable under section 1080.

(3) In its application to any income tax charged by any assessment made in accordance with this Schedule, section 1080 shall apply as if subsection (2)(b) of that section were deleted.

(a) income tax in respect of the proceeds of the sale or realisation of any coupon or in respect of the price paid on the purchase of any coupon has been accounted for under this Part by any banker or any dealer in coupons, and

(b) the Revenue Commissioners are satisfied that the dividends payable on the coupons in relation to which such proceeds or such price arises have been subsequently paid in such manner that income tax has been deducted from such dividends under any of the provisions of this Schedule,

then the income tax so deducted shall be repaid.”,

and

(g) in Part 5 of Schedule 2 by the deletion of paragraph 27.

(2) This section shall come into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.

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

39.— (1) Section 198 of the Principal Act is amended in subsection (1)(c) by substituting the following for subparagraph (iii)—

“(iii) a person shall not be chargeable to income tax in respect of interest paid by a company—

(I) if the person is not a resident of the State and is regarded as being a resident of a relevant territory for the purposes of this subsection, or

(II) the person is a company controlled in accordance with section 172D(3)(b)(ii), or a company the principal class of shares of which are shares to which section 172D(3)(b)(iii) applies,

and the interest is interest to which section 64(2) applies, an interest payment to which section 246A applies or interest paid in respect of an asset covered security within the meaning of section 3 of the Asset Covered Securities Act 2001,”.

(2) This section shall apply to interest paid on or after the passing of this Act.

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

40.— (1) Section 80A of the Principal Act is amended in subsection (1), in the definition of “specified assets”, by substituting “assets the predictable useful life of which does not exceed 8 years and which are” for “relevant short-term assets”.

(2) This section applies as respects accounting periods commencing on or after 1 January 2012.

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

41.— (1) Section 110 of the Principal Act is amended in subsection (1) in the definition of “carbon offsets”—

(a) in paragraph (b) by substituting “reporting,” for “reporting, or”,

(b) by inserting the following after paragraph (b)—

“(ba) a forest carbon offset issued pursuant to the United Nations Reduced Emissions from Deforestation and Forest Degradation programme, or”,

and

(c) by substituting the following for paragraph (c)—

“(c) any right that is directly attributable to an offset, allowance, permit, licence or right to emit within paragraph (a), (b) or (ba);”.

(2) Section 110 of the Principal Act is amended in subsection (1), in paragraph (f) of the definition of “qualifying company”, by inserting “on or before the specified return date (within the meaning of section 950) for the first accounting period, in relation to which it is such a company,” after “prescribed form,”.

(3) Section 110 of the Principal Act is amended in subsection (4A) by substituting the following for paragraph (b)(i):

“(i) a person who is resident in the State or, if not so resident, is otherwise within the charge to corporation tax in the State in respect of that interest or other distribution, or”.

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

42.— (1) The Principal Act is amended by inserting the following after section 452—

“452A.— (1) In this section—

‘additional tax’, in relation to a territory in respect of a qualifying company for an accounting period, means the amount determined by the formula—

A B/100

where—

A is the specified amount for that territory in respect of the qualifying company for the accounting period, and

B is the rate per cent specified in section 21(1)(f);

‘deductible amount’, in relation to a territory in respect of a qualifying company for an accounting period, means the amount determined by the formula—

C D/E

where—

C is the specified amount for that territory in respect of the qualifying company for the accounting period,

D is the specified tax in relation to such specified amount, and

E is the additional tax in relation to that specified amount;

‘foreign tax in respect of a qualifying company for an accounting period’ means, in relation to a company carrying on business in a territory, the amount determined by the formula—

F G/100

where—

F is so much of the specified amount for the territory in respect of the qualifying company for the accounting period as is payable to the company carrying on business, and

G is the rate per cent of tax in the territory which is chargeable on—

(a) interest received in the territory by a company from sources outside the territory, or

(b) where the amount of interest payable to the company carrying on business is taken into account in computing business profits of that company, business profits;

‘interest’ means interest other than—

(a) yearly interest, and

(b) interest to which subsection (2B) of section 130, subsection (2)(a), (3)(a) or (3A)(a) of section 452 or subsection (2) of section 845A applies;

‘qualifying company’ means a company—

(a) which advances money in the ordinary course of a trade carried on in the State which includes the lending of money, and

(b) for which any interest payable in respect of money so advanced is taken into account in computing the income of that trade of the company;

‘specified amount’, in relation to a territory in respect of a qualifying company for an accounting period, means the amount of specified interest that is payable for that accounting period by the qualifying company to a company or more than one company carrying on a business in the territory where the interest is taken into account in that territory in computing the income, profits or gains of that business;

‘specified interest’, in relation to a qualifying company, means interest, payable by the company in the course of a trade referred to in the definition of ‘qualifying company’, which apart from this section, would be treated as a distribution by virtue only of section 130(2)(d)(iv);

‘specified tax’, in relation to a specified amount in respect of a qualifying company for an accounting period, means the lesser of—

(a) the additional tax in relation to that specified amount, and

(b) the aggregate amount of foreign tax in respect of the qualifying company for the accounting period, in relation to companies carrying on business in the territory to which the specified amount relates;

‘territory’ means a territory other than a relevant territory within the meaning of section 246.

(2) Section 130(2)(d)(iv) shall not apply to the deductible amount for a territory in respect of a qualifying company for an accounting period.”.

(2) This section applies in respect of accounting periods commencing on or after 1 January 2012.

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

43.— (1) Section 238 of the Principal Act is amended in subsection (6) by deleting “resident in the State”.

(2) Section 241 of the Principal Act is amended in subsection (2)—

(a) in paragraph (a)(i) by substituting “section 238(2) or 246(2)” for “section 238(2)”,

(b) in paragraph (a)(ii) by substituting “section 238(2) or 246(2)” for “section 238(2)”,

(c) by deleting “and” before paragraph (b), and

(d) by substituting the following for paragraph (b):

“(b) section 239(5) shall apply to income tax in respect of payments referred to in paragraph (a), and

(c) income tax in respect of which a return is to be made under paragraph (a) shall, for the purposes of the charge, assessment, collection and recovery from the company making the payments of that tax and of any interest or penalties on that tax, be treated as if it were corporation tax chargeable for the accounting period for which the return is required under paragraph (a).”.

44. Emissions allowances.

44.— (1) The Principal Act is amended—

(a) by inserting the following after section 81B:

“Emissions allowances.

81C.— (1) In this section—

‘Directive’ has the same meaning as in section 540A;

‘emissions allowance’ means—

(a) an allowance within the meaning of Article 3 of the Directive,

(b) an emission reduction unit or ERU, within the meaning of Article 3 of the Directive, or

(c) a certified emission reduction or CER, within the meaning of Article 3 of the Directive;

‘profit and loss account’, in relation to an accounting period of a company, has the meaning assigned to it by generally accepted accounting practice and includes an income and expenditure account where a company prepares accounts in accordance with international accounting standards.

(2) Notwithstanding anything in section 81, any amount, computed in accordance with generally accepted accounting practice, charged to the profit and loss account of a company, for the period of account which is the same as the accounting period, in respect of expenditure, for the purposes of a trade carried on by the company, on the purchase of an emissions allowance shall be allowed to be deducted as expenses in computing the amount of the profits or gains of the company to be charged to tax under Case I of Schedule D for the accounting period.

(3) Subject to section 540A, where a company disposes of an emissions allowance which it purchased for the purposes of a trade carried on by it, the consideration for such disposal shall be treated as a trading receipt of the trade.”,

and

(b) by inserting the following after section 540:

“Disposal of certain emissions allowances.

540A.— (1) In this section—

‘Agency’ means the Environmental Protection Agency, being a competent authority designated under Article 18 of the Directive;

‘aircraft operator’ has the same meaning as in Article 3 of the Directive;

‘Directive’ means Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 [^2] (as amended by Directive 2004/101/EC of the European Parliament and of the Council of 27 October 2004 [^3], Directive 2008/101/EC of the European Parliament and of the Council of 19 November 2008 [^4] and Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 [^5]);

‘emissions allowance’ means an allowance within the meaning of Article 3 of the Directive;

‘installation’ and ‘operator’ have the same meanings respectively as in Article 3 of the Directive;

‘permit’ means a greenhouse gas emissions permit within the meaning of Article 3 of the Directive;

‘relevant person’ means—

(a) a person to whom a permit has been issued in accordance with Articles 5 and 6 of the Directive in respect of an installation in relation to which the person is an operator, or

(b) an aircraft operator;

‘relevant scheme’ means—

(a) a scheme of reconstruction or amalgamation in relation to which section 615 applies,

(b) a transfer of an asset in relation to which section 617 applies, or

(c) a transfer of a trade, or part of a trade, in relation to which section 631 applies.

(2) (a) Subject to paragraphs (b), (c) and (d) and notwithstanding section 110 or any other provision of the Tax Acts, where—

(i) a relevant person sells, transfers or otherwise disposes of an emissions allowance (in this section referred to as a ‘relevant emissions allowance’) received or receivable free of charge by that person from the Agency in accordance with the Directive, or

(ii) a company sells, transfers or otherwise disposes of a relevant emissions allowance which the company acquired under, or as part of, a relevant scheme,

such a sale, transfer or disposal shall constitute the disposal of an asset for the purposes of the Capital Gains Tax Acts and be treated as not being a disposal of trading stock for such purposes.

(b) References in paragraph (a) to the sale, transfer or disposal of a relevant emissions allowance shall include references to the sale, transfer or disposal of any interest or rights in or over such an allowance.

(c) Paragraph (a) shall not apply to a surrender and cancellation of an emissions allowance in accordance with Article 12 of the Directive.

(d) Paragraph (a)(ii) shall not apply to any sale, transfer or disposal of a relevant emissions allowance where, at any time before that event, the relevant emissions allowance was transferred from one company to another company in circumstances where the transfer was not made under, or as part of, a relevant scheme.

(3) For the purposes of the computation under this Part of any gain accruing to a relevant person or a company, as the case may be, on a disposal referred to in subsection (2)—

(a) no sum shall, notwithstanding section 547 or 552, be allowed as a deduction from the consideration for the disposal apart from incidental costs to the person or company making the disposal, and

(b) emissions allowances other than relevant emissions allowances shall be deemed to have been disposed of before relevant emissions allowances are disposed of by the person or company.

(4) Section 596 shall not apply where a relevant emissions allowance acquired by a person is appropriated as trading stock of the trade carried on by the person.”.

(2) Subsection (1)(b) applies to disposals, referred to in section 540A (inserted by subsection (1)(b)) of the Principal Act, made on or after 8 February 2012.

Chapter 5 Corporation Tax

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

45.— Section 486C of the Principal Act is amended in subsection (2)(a) by substituting “at any time in the period beginning on 1 January 2009 and ending on 31 December 2014” for “2009, 2010 or 2011”.

46. Amendment of Schedule 4 (exemption of specified non-commercial state-sponsored bodies from certain tax provisions) to Principal Act.

46.— (1) Schedule 4 to the Principal Act is amended—

(a) by inserting the following after paragraph 39:

“39A. The Food Safety Authority of Ireland.”,

and

(b) by inserting the following after paragraph 92:

“92A. The Sustainable Energy Authority of Ireland.”.

(2) (a) Subsection (1) (a) is deemed to have come into force and have taken effect as on and from 1 January 1999.

(b) Subsection (1) (b) is deemed to have come into force and have taken effect as on and from 1 May 2002.

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

47.— (1) Section 411 of the Principal Act is amended in subsection (1)—

(a) in paragraph (a), in the definition of “relevant Member State”, by substituting “made;” for “made.” in subparagraph (ii),

(b) in paragraph (a) by inserting the following after the definition of “relevant Member State”:

“ ‘relevant territory’ means—

(i) a relevant Member State,

(ii) not being such a Member State, a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or

(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”,

and

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

“(c) In determining for the purposes of this section and the following sections of this Chapter whether one company is a 75 per cent subsidiary of another company, the other company shall be treated as not being the owner of—

(i) any share capital which it owns directly in a company if a profit on a sale of the shares would be treated as a trading receipt of its trade,

(ii) any share capital which it owns indirectly and which is owned directly by a company for which a profit on the sale of the shares would be a trading receipt, or

(iii) any share capital which it owns directly in a company, not being a company—

(I) which by virtue of the law of a relevant territory, is resident for the purposes of tax in such a relevant territory, or

(II) the principal class of shares of which or, where the company is a 75 per cent subsidiary of another company, the principal class of shares of that other company, is substantially and regularly traded on a stock exchange in the State, on one or more than one recognised stock exchange in a relevant territory or territories or on such other stock exchange as may be approved of by the Minister for Finance for the purposes of Chapter 8A of Part 6.

(d) References in this Chapter to a company which is a surrendering company or a claimant company shall apply only to a company which, by virtue of the law of a relevant Member State, is resident for the purposes of tax in such a Member State.”.

(2) (a) This section applies as respects accounting periods ending on or after 1 January 2012.

(b) This section shall not have effect in relation to the determination of the amount of loss or other amount available for surrender under section 411(2) of the Principal Act for an accounting period beginning before 1 January 2012 and ending after that date to the extent that the loss or other amount is attributable to the part of the accounting period falling before that date.

(c) Any apportionment necessary for the purposes of giving effect to paragraph (b) shall be made in accordance with section 4(6) of the Principal Act.

48. Amendment of section 835D (principles for constructing rules in accordance with OECD guidelines) of Principal Act.

48.— (1) Section 835D of the Principal Act is amended in subsection (1) in paragraph (b) of the definition of “transfer pricing guidelines” by inserting “and 22 July 2010 and by the revision approved by the OECD Council on 22 July 2010” after “16 July 2009”.

(2) This section applies as on and from the date of the passing of this Act.

49. Amendment of Schedule 24 (relief from income tax and corporation tax by means of credit in respect of foreign tax) to Principal Act.

49.— (1) Schedule 24 to the Principal Act is amended in paragraph 9DB by inserting the following at the end of that paragraph:

“(4) Where as respects any relevant royalties received in an accounting period by a company, any part of the foreign tax cannot, due to an insufficiency of income, be treated as reducing income under paragraph 7(3)(c) or under section 77(6B), then the amount which cannot be so treated shall, for the purposes of this paragraph, be unrelieved foreign tax.

(5) Where, as respects an accounting period, a company is in receipt of royalties from persons not resident in the State and such royalties are taken into account in computing the trading income of a trade carried on by the company, the company may—

(a) reduce the income (in this subparagraph referred to as ‘royalty income’) referable to any such payments by any unrelieved foreign tax, and

(b) allocate such reductions in such amounts and to such of its royalty income for that accounting period as it sees fit.

(6) The aggregate amount of reductions under subparagraph (5) in an accounting period cannot exceed the aggregate of the unrelieved foreign tax in respect of all relevant royalties for that accounting period.”.

(2) This section applies as respects relevant royalties (within the meaning of paragraph 9DB(1)(a) of Schedule 24 to the Principal Act) received on or after 1 January 2012.

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

50.— (1) Section 77 of the Principal Act is amended by inserting the following after subsection (6):

“(6A) (a) In this subsection—

‘amount of the income referable to the relevant interest’ shall be construed in accordance with paragraph 9D(1)(b)(ii) of Schedule 24;

‘relevant foreign tax’ and ‘relevant interest’ have the same meanings, respectively, as in paragraph 9D(1)(a) of Schedule 24.

(b) Where, as respects an accounting period of a company, the trading income of a trade carried on by the company includes an amount of relevant interest, the amount of the income referable to the relevant interest shall be treated as reduced (where such a deduction cannot be made under, and is not forbidden by, any provision of the Income Tax Acts applied by the Corporation Tax Acts) by the relevant foreign tax in relation to the relevant interest.

(6B) (a) In this subsection—

‘amount of the income referable to the relevant royalties’ shall be construed in accordance with paragraph 9DB(1)(b)(ii) of Schedule 24;

‘relevant foreign tax’ and ‘relevant royalties’ have the same meanings, respectively, as in paragraph 9DB(1)(a) of Schedule 24.

(b) Where, as respects an accounting period of a company, the trading income of a trade carried on by the company includes an amount of relevant royalties, the amount of the income referable to the relevant royalties shall be treated as reduced (where such a deduction cannot be made under, and is not forbidden by, any provision of the Income Tax Acts applied by the Corporation Tax Acts) by the relevant foreign tax in relation to the relevant royalties.”.

(2) This section applies as respects accounting periods ending on or after 1 January 2012.

51. Mergers where a company is dissolved without going into liquidation.

51.— (1) The Principal Act is amended by inserting the following after section 633C—

“633D.— The transfer of all the assets and liabilities of a company which is a wholly owned subsidiary of another company (in this section referred to as the ‘parent company’) to the parent company, on that subsidiary company being dissolved without going into liquidation, shall not be treated as involving a disposal by the parent company of the share capital which it held in the subsidiary company immediately before the dissolution.”.

(2) Subsection (1) shall have effect in respect of assets and liabilities transferred on or after 1 January 2012.

52. Unilateral relief (leasing income).

52.— (1) The Principal Act is amended in Schedule 24—

(a) in paragraph 4(5)(a) by substituting “paragraphs 9D, 9DB and 9DC” for “paragraphs 9D and 9DB”,

(b) in paragraph 4(5)(b) by deleting “and” where it last occurs in subclause (iv), by inserting “and” after “that paragraph),” in subclause (v) and by inserting the following after subclause (v):

“(vi) the amount of income of a company treated for the purposes of paragraph 9DC as referable to an amount of relevant leasing income (within the meaning of that paragraph),”,

and

(c) by inserting the following after paragraph 9DB:

“Unilateral Relief (leasing income)

9DC. (1) (a) In this paragraph—

‘leasing income’ means payments of any kind as consideration for the use of, or the right to use, industrial, commercial or scientific equipment;

‘relevant foreign tax’, in relation to leasing income receivable by a company, means tax—

(i) which under the laws of any foreign territory has been deducted from the amount of the lease payment,

(ii) which corresponds to income tax or corporation tax,

(iii) which has not been repaid to the company,

(iv) for which credit is not allowable under arrangements, and

(v) which, apart from this paragraph, is not treated under this Schedule as reducing the amount of income;

‘relevant leasing income’ means leasing income receivable by a company—

(i) which falls to be taken into account in computing the trading income of a trade carried on by the company, and

(ii) from which relevant foreign tax is deducted.

(b) For the purposes of this paragraph—

(i) the amount of corporation tax which apart from this paragraph would be payable by a company for an accounting period and which is attributable to an amount of relevant leasing income shall be an amount equal to 12.5 per cent of the amount by which the amount of the income of the company referable to the amount of the relevant leasing income exceeds the relevant foreign tax, and

(ii) the amount of any income of a company referable to an amount of relevant leasing income in an accounting period shall, subject to paragraph 4(5), be taken to be such sum as bears to the total amount of the trading income of the company for the accounting period before deducting any relevant foreign tax the same proportion as the amount of relevant leasing income in the accounting period bears to the total amount receivable by the company in the course of the trade in the accounting period.

(2) Where, as respects an accounting period of a company, the trading income of a trade carried on by the company includes an amount of relevant leasing income, the amount of corporation tax which, apart from this paragraph, would be payable by the company for the accounting period shall be reduced by so much of 87.5 per cent of any relevant foreign tax borne by the company in respect of relevant leasing income 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 leasing income.”.

(2) This section applies in respect of leasing income (within the meaning of paragraph 9DC(1)(a) (inserted by subsection (1)) of Schedule 24 to the Principal Act) received on or after 1 January 2012.

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

53.— (1) Section 21B of the Principal Act is amended in subsection (1)(a) by substituting the following for the definition of “relevant territory”:

“ ‘relevant territory’ means—

(i) a Member State of the European Communities,

(ii) not being such a Member State, a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made,

(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law, or

(iv) not being a territory referred to in subparagraph (i), (ii) or (iii), a territory the government of which has ratified the Convention referred to in section 826(1C);”.

(2) This section shall apply to dividends received on or after 1 January 2012.

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

54.— Consequential on the expiration of the scheme of relief for certain manufacturing companies under Part 14 of the Principal Act, the provisions of that Act referred to in Schedule 1 are amended as provided for in that Schedule.

Chapter 6 Capital Gains Tax

55. Capital gains: rate of charge.

55.— (1) The Principal Act is amended—

(a) in section 28(3) by substituting “30 per cent” for “25 per cent”, and

(b) in section 649A(1) by substituting the following for paragraph (b):

“(b) in the case of a relevant disposal made on or after 7 December 2011, 30 per cent.”.

(2) This section applies to disposals made on or after 7 December 2011.

56. Amendment of section 533 (location of assets) of Principal Act.

56.— (1) Section 533 of the Principal Act is amended—

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

“(da) subject to paragraph (d), shares in, or securities of, a company incorporated in the State shall be situated in the State and, for the purposes of this paragraph, ‘shares’ includes warrants in respect of shares (including share warrants (within the meaning of section 88 of the Companies Act 1963)) and any other instrument or security the value of which is derived from, or calculated by reference to, shares;”,

and

(b) in paragraph (e) by substituting “subject to paragraphs (d) and (da)” for “subject to paragraph (d)”.

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

57. Amendment of section 562 (contingent liabilities) of Principal Act.

57.— (1) Section 562 of the Principal Act is amended by inserting the following after subsection (2):

“(2A) No adjustment shall be made in accordance with subsection (2) unless it is shown to the satisfaction of the inspector that the assignor, vendor, lessor or grantor of an option, as the case may be, has paid an amount equal to the amount of the contingent liability in respect of that liability.”.

(2) This section applies to disposals made on or after 8 February 2012.

58. Certain share transactions with investment undertakings.

58.— (1) The Principal Act is amended—

(a) in section 584(3) by substituting “(10)” for “(9)”,

(b) in section 584 by inserting the following after subsection (9):

“(10) (a) In this subsection, ‘investment undertaking’ and ‘unit’ have the same meanings respectively as in section 739B.

(b) Subsection (3) shall not apply where the new holding comprises units in an investment undertaking, being a company.”,

(c) in section 585(1) by inserting the following definitions before the definition of “security”:

“ ‘investment undertaking’ and ‘unit’ have the same meanings respectively as in section 739B;”,

(d) in section 585 by inserting the following after subsection (1):

“(1A) For the purposes of this section, a conversion of securities shall not include a conversion of securities into units in an investment undertaking, being a company.”,

(e) in section 586(3) by inserting the following after paragraph (c):

“(d) This section shall not apply where the company issuing the shares or debentures is an investment undertaking within the meaning of section 739B.”,

and

(f) in section 587(4) by inserting the following after paragraph (c):

“(d) This section shall not apply where the company issuing the shares or debentures is an investment undertaking within the meaning of section 739B.”.

(2) This section applies to any shares or debentures issued by a company on or after 22 February 2012.

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

59.— Section 598 of the Principal Act is amended by substituting the following for subsection (2):

“(2) (a) Subject to this section, where an individual who has attained the age of 55 years but has not attained the age of 66 years disposes of the whole or part of his or her qualifying assets, then—

(i) if the amount or value of the consideration for the disposal does not exceed €750,000, relief shall be given in respect of the full amount of capital gains tax chargeable on any gain accruing on the disposal;

(ii) if the amount or value of the consideration for the disposal exceeds €750,000, the amount of capital gains tax chargeable on the gain accruing on the disposal shall not exceed 50 per cent of the difference between the amount of that consideration and €750,000.

(b) Subject to this section, where an individual who has attained the age of 66 years disposes of the whole or part of his or her qualifying assets on or before 31 December 2013, then—

(i) if the amount or value of the consideration for the disposal does not exceed €750,000, relief shall be given in respect of the full amount of capital gains tax chargeable on any gain accruing on the disposal;

(ii) if the amount or value of the consideration for the disposal exceeds €750,000, the amount of capital gains tax chargeable on the gain accruing on the disposal shall not exceed 50 per cent of the difference between the amount of that consideration and €750,000.

(c) Subject to this section, where an individual who has attained the age of 66 years disposes of the whole or part of his or her qualifying assets on or after 1 January 2014, then—

(i) if the amount or value of the consideration for the disposal does not exceed €500,000, relief shall be given in respect of the full amount of capital gains tax chargeable on any gain accruing on the disposal;

(ii) if the amount or value of the consideration for the disposal exceeds €500,000, the amount of capital gains tax chargeable on the gain accruing on the disposal shall not exceed 50 per cent of the difference between the amount of that consideration and €500,000.

(d) For the purposes of paragraphs (a), (b) and (c), the amount of capital gains tax chargeable in respect of the gain shall be the amount of tax which would not have been chargeable but for that gain.”.

60. Amendment of section 599 (disposals within family of business or farm) of Principal Act.

60.— Section 599(1) of the Principal Act is amended by substituting the following for paragraph (b):

“(b) Subject to this section—

(i) where an individual who has attained the age of 55 years but has not attained the age of 66 years disposes of the whole or part of his or her qualifying assets to his or her child, relief shall be given in respect of the capital gains tax chargeable on any gain accruing on the disposal;

(ii) where an individual who has attained the age of 66 years disposes of the whole or part of his or her qualifying assets to his or her child on or before 31 December 2013, relief shall be given in respect of the capital gains tax chargeable on any gain accruing on the disposal;

(iii) where an individual who has attained the age of 66 years disposes of the whole or part of his or her qualifying assets to his or her child on or after 1 January 2014 and the market value of the qualifying assets is greater than €3,000,000, relief shall be given in respect of the capital gains tax chargeable on any gain accruing on the disposal as if the consideration for the disposal had been €3,000,000.”.

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

61.— (1) Section 611(1)(a) of the Principal Act is amended in subparagraph (iii) by inserting “the Local Government Computer Services Board, the Local Government Management Services Board, the Affordable Homes Partnership, Irish Water Safety, Limerick Northside Regeneration Agency, Limerick Southside Regeneration Agency,” after “the Friends of the National Collections of Ireland,”.

(2) This section applies to disposals made on or after 8 February 2012.

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

62.— Section 613 of the Principal Act is amended by inserting the following after subsection (6):

“(7) No chargeable gain shall arise on the receipt of an amount of compensation whether in money or money’s worth under the Cessation of Turf Cutting Compensation Scheme administered by the Minister for Arts, Heritage and the Gaeltacht relating to the cessation of turf cutting on raised bog Special Areas of Conservation or Natural Heritage Areas, as required under the European Communities (Birds and Natural Habitats) Regulations 2011 (S.I. No. 477 of 2011) or the Wildlife (Amendment) Act 2000.”.

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

63.— (1) Schedule 15 to the Principal Act is amended—

(a) by substituting the following for paragraph 9:

“9. Teagasc — The Agriculture and Food Development Authority.”,

and

(b) by inserting the following after paragraph 31:

“31A. The Dublin Institute of Technology in respect of any disposal made by it to the Grangegorman Development Agency.

31B. The Grangegorman Development Agency.”.

(2) This section applies to disposals made on or after 8 February 2012.

64. Relief for certain disposals of land or buildings.

64.— The Principal Act is amended by inserting the following section after section 604:

“604A. (1) In this section

‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed in Brussels on 17 March 1993;

‘EEA State’ means a state which is a contracting party to the EEA Agreement.

(2) This section applies to land or buildings situated in any EEA State (including the State)

(a) which

(i) were acquired for a consideration equal to their market value in the period commencing on 7 December 2011 and ending on 31 December 2013, or

(ii) were acquired in the period referred to in subparagraph (i) from a relative (within the meaning of section 10) and the consideration was not less than 75 per cent of their market value at the date they were acquired,

and

(b) which continue in the ownership of the person who acquired that land or those buildings for a period of at least 7 years from the date they were acquired.

(3) On a disposal of land or buildings to which this section applies, such portion of the gain shall not be a chargeable gain as represents the same proportion of the gain as 7 years bears to the period of ownership of such land or buildings.

(4) Relief under subsection (3) shall not apply

(a) to land or buildings to which this section applies unless any income or profits or gains derived from the land or buildings concerned in the period of 7 years from the date they were acquired by the person who acquired them is income or profits or gains to which the Income Tax Acts or the Corporation Tax Acts apply, or

(b) where arrangements (within the meaning of section 546A) have been put in place and it can be shown that relief (apart from the relief given under subsection (3)) would be less if the arrangements had not been put in place.”.

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

65.— (1) The Principal Act is amended by inserting the following section after section 79B:

“79C. (1) In this section

‘approved accounting standards’ means standards which are in accordance with generally accepted accounting principles in the State or in accordance with International Financial Reporting Standards (as promulgated by the International Accounting Standards Board);

‘net foreign exchange gain’ means the excess of foreign exchange gains over foreign exchange losses arising on the disposal of currency in a relevant bank deposit by a relevant holding company, but does not include such gains and losses which are chargeable to corporation tax under Case I of Schedule D;

‘net foreign exchange loss’ means the excess of foreign exchange losses over foreign exchange gains arising on the disposal of currency in a relevant bank deposit by a relevant holding company, but does not include such gains and losses which are chargeable to corporation tax under Case I of Schedule D;

‘profit and loss account’ has the same meaning as in section 81C;

‘relevant bank deposit’ means a sum standing to the credit of a relevant holding company in a bank and which is not Irish currency;

‘relevant holding company’ means a company

(a) with at least one wholly-owned subsidiary and that subsidiary derives the greater part of its income from trading activities, or

(b) which acquires or sets up, within one year of a net foreign exchange gain being credited to its accounts, a wholly-owned subsidiary which derives the greater part of its income from trading activities.

(2) Currency in a relevant bank deposit shall not be an asset to which section 532 applies.

(3) An amount determined by the formula—

A 6

5

where A is the net foreign exchange gain which is credited in the profit and loss account of a relevant holding company, as reduced by so much of any loss under section 383 as is attributable to a net foreign exchange loss and which has not been deducted from any other amount of income, shall be income chargeable under Case IV of Schedule D.

(4) This section shall not apply unless the accounts are drawn up in accordance with approved accounting standards.

(5) An allowable loss under section 546 which is unused at the date this section comes into effect and which has arisen, or would have arisen, on the disposal of currency in a relevant bank deposit of a relevant holding company may be treated as an unused loss, at the same date, under section 383.

(6) An allowable loss under section 546 to which subsection (5) applies may qualify for relief under section 383 or 546, but may not qualify for relief under both those provisions.”.

(2) This section applies as respects accounting periods ending on or after 1 January 2012.

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

66.— (1) Section 579 of the Principal Act is amended—

(a) in subsection (1) by deleting “domiciled and” in each place,

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

“(b) Notwithstanding paragraph (a), where a beneficiary under the settlement was neither resident nor ordinarily resident in the State in a year of assessment during which a gain accrued to the trustees, but was so resident or ordinarily resident in an earlier and subsequent year of assessment, the gain which would have accrued to that beneficiary if paragraph (a) had applied shall be treated as accruing in the first year of assessment in which he or she subsequently becomes resident or ordinarily resident in the State.

(c) Notwithstanding paragraph (a), where a person was excluded as a beneficiary under the settlement for a period of time but was subsequently included as a beneficiary of that settlement and a gain accrued to the trustees during a year of assessment when that beneficiary was so excluded, a gain which would have accrued to the beneficiary if paragraph (a) had applied shall be treated as accruing in the first year of assessment in which that person was subsequently included as a beneficiary of the settlement concerned.

(d) Notwithstanding paragraph (a), if a beneficiary is not treated under the provisions of paragraph (a), (b) or (c) as if any apportioned part of a gain accrued to him or her in a year of assessment and—

(i) the trustees have earlier realised a chargeable gain, and

(ii) the beneficiary receives a capital payment (within the meaning of section 579A(1)) from the trust during a year of assessment in which he or she is either resident or ordinarily resident in the State,

then, the beneficiary shall be treated as if an amount equal to—

(I) the capital payment, or

(II) the apportioned gain which would have accrued to him or her if paragraphs (a), (b) or (c) had applied,

whichever is less, were a chargeable gain accruing to him or her in the year of assessment in which the capital payment is received.

(e) For the purposes of this section, any amount referred to in paragraph (a), (b) or (c) shall be apportioned in such manner as is just and reasonable between persons having interests in the settled property, whether the interest is a life interest or an interest in reversion, and so that the chargeable gain is apportioned as near as may be according to the respective values of those interests, disregarding in the case of a defeasible interest the possibility of defeasance.”,

and

(c) in subsection (3) by deleting paragraph (b).

(2) This section applies to disposals made on or after 8 February 2012.

67. Exemption for proceeds of disposal by sports bodies.

67.— (1) The Principal Act is amended—

(a) by inserting the following section after section 610:

“610A.— (1) Subject to subsection (2), a gain shall not be a chargeable gain if it accrues to an approved body to the extent that the proceeds of the disposal giving rise to the gain or, if greater, the consideration for the disposal under the Capital Gains Tax Acts have, within 5 years of the receipt of the proceeds of the disposal or the consideration, as the case may be, been applied for the sole purpose of promoting athletic or amateur games or sports.

(2) A gain shall not be a chargeable gain if it accrues to an approved body to the extent that the proceeds of the disposal (or part thereof) giving rise to the gain or, if greater, the consideration for the disposal (or part thereof) have, within 5 years of the receipt of the proceeds of the disposal or the consideration, as the case may be, been donated for charitable purposes to a person or body of persons and—

(a) application has been made to the Minister for Finance specifying the person or body of persons to which the approved body proposes to make a donation and he or she has approved the making of the donation to the person or body of persons specified in the application,

(b) the donation is evidenced by a deed which stipulates that the donation is applicable and must be applied for the purposes of the charity only, and

(c) neither the donor nor a person connected to the donor receives a benefit in consequence of making the donation, either directly or indirectly.

(3) The Minister for Finance may refuse to approve the donation to the person or body of persons referred to in subsection (2) if he or she believes that the public good would not be served if the donation were made.

(4) The Revenue Commissioners may allow an extension of the period of 5 years referred to in subsection (1) for the application of proceeds for sporting purposes if they are satisfied that an approved body is in the process of applying proceeds for that purpose.

(5) The Revenue Commissioners may allow an extension of the period of 5 years referred to in subsection (2) for the making of a donation for charitable purposes if they are satisfied that an approved body is in the process of making such a donation.

(6) In this section ‘approved body’ means an approved body of persons within the meaning of section 235(1).”,

and

(b) in Schedule 15 by deleting paragraph 37.

(2) Subsections (2), (3) and (5) of section 610A (inserted by subsection (1)) of the Principal Act shall be deemed to have had effect in respect of disposals on or after 1 January 2005.

PART 2 Excise

68. Mineral oil tax: carbon charge.

68.— (1) The Finance Act 1999 is amended with effect as on and from 7 December 2011—

(a) by substituting the following for Schedule 2 (as amended by section 42 of the Finance Act 2011):

“SCHEDULE 2

(With effect as on and from 7 December 2011)

Description of Mineral Oil	Rate of Tax
Light Oil:
Petrol	€587.71 per 1,000 litres
Aviation gasoline	€587.71 per 1,000 litres
Heavy Oil:
Used as a propellant	€479.02 per 1,000 litres
Used for air navigation	€479.02 per 1,000 litres
Used for private pleasure navigation	€479.02 per 1,000 litres
Kerosene used other than as a propellant	€38.02 per 1,000 litres
Fuel oil	€60.73 per 1,000 litres
Other heavy oil	€88.66 per 1,000 litres
Liquefied Petroleum Gas:
Used as a propellant	€88.23 per 1,000 litres
Other liquefied petroleum gas	€24.64 per 1,000 litres
Coal:
For business use	€4.18 per tonne
For other use	€8.36 per tonne

”,

and

(b) by substituting the following for Schedule 2A (as amended by section 64(1)(e) of the Finance Act 2010):

“SCHEDULE 2A

(With effect as on and from 7 December 2011)

Description of Mineral Oil	Rate
Light Oil:
Petrol	€45.87 per 1,000 litres
Aviation gasoline	€45.87 per 1,000 litres
Heavy Oil:
Used as a propellant	€53.30 per 1,000 litres
Used for air navigation	€53.30 per 1,000 litres
Used for private pleasure navigation	€53.30 per 1,000 litres
Kerosene used other than as a propellant	€38.02 per 1,000 litres
Fuel oil	€45.95 per 1,000 litres
Other heavy oil	€41.30 per 1,000 litres
Liquefied Petroleum Gas:
Used as a propellant	€24.64 per 1,000 litres
Other liquefied petroleum gas	€24.64 per 1,000 litres

”.

(2) The Finance Act 1999 is further amended with effect as on and from 1 May 2012—

(a) by substituting the following for Schedule 2 (as amended bysubsection (1) (a)):

“SCHEDULE 2

(With effect as on and from 1 May 2012)

Description of Mineral Oil	Rate of Tax
Light Oil:
Petrol	€587.71 per 1,000 litres
Aviation gasoline	€587.71 per 1,000 litres
Heavy Oil:
Used as a propellant	€479.02 per 1,000 litres
Used for air navigation	€479.02 per 1,000 litres
Used for private pleasure navigation	€479.02 per 1,000 litres
Kerosene used other than as a propellant	€50.73 per 1,000 litres
Fuel oil	€76.53 per 1,000 litres
Other heavy oil	€102.28 per 1,000 litres
Liquefied Petroleum Gas:
Used as a propellant	€96.45 per 1,000 litres
Other liquefied petroleum gas	€32.86 per 1,000 litres
Coal:
For business use	€4.18 per tonne
For other use	€8.36 per tonne

”,

and

(b) by substituting the following for Schedule 2A (as amended bysubsection (1) (b)):

“SCHEDULE 2A

(With effect as on and from 1 May 2012)

Description of Mineral Oil	Rate
Light Oil:
Petrol	€45.87 per 1,000 litres
Aviation gasoline	€45.87 per 1,000 litres
Heavy Oil:
Used as a propellant	€53.30 per 1,000 litres
Used for air navigation	€53.30 per 1,000 litres
Used for private pleasure navigation	€53.30 per 1,000 litres
Kerosene used other than as a propellant	€50.73 per 1,000 litres
Fuel oil	€61.75 per 1,000 litres
Other heavy oil	€54.92 per 1,000 litres
Liquefied Petroleum Gas:
Used as a propellant	€32.86 per 1,000 litres
Other liquefied petroleum gas	€32.86 per 1,000 litres

”.

(3) Chapter 1 of Part 2 of the Finance Act 1999 is amended (with effect as on and from 7 December 2011) in section 96(1B) (inserted by section 64(1)(f) of the Finance Act 2010) by substituting “A is the amount to be charged per tonne of CO2 emitted, being €20 in the case of petrol, aviation gasoline and heavy oil used as a propellant or for air navigation or for private pleasure navigation, and €15 in the case of each other description of mineral oil in Schedule 2A” for “A is the amount, €15, to be charged per tonne of CO2 emitted”.

(4) Chapter 1 of Part 2 of the Finance Act 1999 is further amended with effect as on and from 1 May 2012—

(a) in section 96(1B) (as amended by subsection (3)) by substituting “A is the amount, €20, to be charged per tonne of CO2 emitted” for “A is the amount to be charged per tonne of CO2 emitted, being €20 in the case of petrol, aviation gasoline and heavy oil used as a propellant or for air navigation or for private pleasure navigation, and €15 in the case of each other description of mineral oil in Schedule 2A”, and

(b) in section 98(1) (as amended by section 64(1)(h) of the Finance Act 2010) by substituting “€56.31” for “€43.60” and “€38.44” for “€30.22”.

69. Rates of tobacco products tax.

69.— (1) The Finance Act 2005 is amended with effect as on and from 7 December 2011 by substituting the following for Schedule 2 to that Act (as amended by section 16 of the Finance Act 2009):

“SCHEDULE 2

(With effect as on and from 7 December 2011)

Description of Product	Rate of Tax
Cigarettes	Rate of tax at €192.44 per thousand together with an amount equal to 18.03 per cent of the price at which the cigarettes are sold by retail.
Cigars	Rate of tax at €271.337 per kilogram.
Fine-cut tobacco for the rolling of cigarettes	Rate of tax at €228.968 per kilogram.
Other smoking tobacco	Rate of tax at €188.243 per kilogram.

”.

(2) The Finance Act 2005 is further amended with effect as on and from 1 May 2012 by substituting the following for Schedule 2 to that Act (as amended by subsection (1)):

“SCHEDULE 2

(With effect as on and from 1 May 2012)

Description of Product	Rate of Tax
Cigarettes	Rate of tax at— (a) except where paragraph (b) applies, €233.11 per thousand together with an amount equal to 9.04 per cent of the price at which the cigarettes are sold by retail, or (b) €268.14 per thousand in respect of cigarettes sold by retail where the rate of tax would be less than that rate had the rate been calculated in accordance with paragraph (a).
Cigars	Rate of tax at €271.337 per kilogram.
Fine-cut tobacco for the rolling of cigarettes	Rate of tax at €228.968 per kilogram.
Other smoking tobacco	Rate of tax at €188.243 per kilogram.

”.

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

70.— Chapter 1 of Part 2 of the Finance Act 2001 is amended—

(a) in section 96(1) by deleting the definitions of “accompanying administrative document”, “free warehouse” and “free zone”,

(b) in section 96(1) by substituting the following for the definition of “tax representative”:

“ ‘tax representative’ means a person approved by the Commissioners under section 109U for the purposes of that section;”,

(c) in section 96(1) by inserting the following definition:

“ ‘transaction’ means any action giving rise to a liability to, or a relief from, any duty of excise;”,

(d) in section 96(1) by substituting the following for the definition of “vehicle”:

“ ‘vehicle’ means a mechanically propelled vehicle or any other conveyance and includes—

(a) any craft or aircraft, and

(b) any container, trailer, tank or any other thing, which—

(i) is or may be used for the storage of goods in the course of carriage, and

(ii) is designed or constructed to be placed on, in or attached to any such vehicle or other conveyance;”,

(e) by substituting the following for section 97:

“97.— For the purposes of this Part the following are excisable products:

(a) alcohol products within the meaning of section 73 of the Finance Act 2003,

(b) tobacco products within the meaning of section 71 of the Finance Act 2005, and

(c) mineral oils within the meaning of section 94 of the Finance Act 1999.”,

(f) in section 98A(2) by substituting “that consignment is, except in the case of an irregular release, released for consumption” for “that consignment is released for consumption”,

(g) in section 99 by substituting the following for subsections (2) and (3):

“(2) The liability under subsection (1)(b) is fully or partly discharged where, and to the extent that, the consignment concerned has been (as the case may be)—

(a) received, under a suspension arrangement, into another tax warehouse in the State, or

(b) ended in accordance with subsection (1) of section 109K, and evidence to that effect has been received in accordance with subsection (2) of that section.

(3) A registered consignor is liable for payment of the excise duty on any consignment dispatched by such registered consignor under section 109E(1)(b), and that liability is fully or partly discharged where, and to the extent that, the consignment has ended in accordance with subsection (1) of section 109K, and evidence to that effect has been received in accordance with subsection (2) of that section.”,

(h) in section 99A by substituting the following for subsection (1):

“(1) In this section ‘authorised officer’ means an officer authorised in writing by the Commissioners to exercise the powers conferred by this section.”,

(i) by inserting the following after section 99A:

“Estimation of excise duty due.

99AA.— (1) Where a person who is required, by any provision of excise law, to make a return of the excise duty payable by such person for any period fails to do so within the time specified in the provision concerned, the Commissioners may, subject to subsection (2)—

(a) estimate the amount of duty payable by that person for such period, and

(b) serve notice (in this section referred to as a ‘notice of estimation’) on the person of the amount estimated.

(2) (a) Where the Commissioners are satisfied that the amount of any estimation is excessive or deficient, or that there is no liability for the period concerned, then they may accordingly reduce, increase or withdraw such estimation.

(b) In any case where an estimation is reduced or increased under paragraph (a), the Commissioners shall serve an amended notice of estimation on the person concerned.

(3) If at any time after a notice of estimation or amended notice of estimation, as the case may be, is served, the return referred to in subsection (1) is made, and excise duty is paid in accordance with that return together with any interest and costs that may have been incurred in connection with that payment, then the notice of estimation, or amended notice of estimation, shall stand discharged.

Time limits.

99AB.— (1) In this section ‘taxable period’ means a period in respect of which a person is required, by any provision of excise law, to make a return of the excise duty payable by that person for that period and to pay that amount.

(2) Subject to subsection (4), an assessment under section 99A or an estimation under section 99AA may be made at any time not later than 4 years from—

(a) except where paragraph (b) applies, the date of the transaction giving rise to the liability concerned,

(b) where the liability is in respect of a taxable period, the last day of such period.

(3) Subject to subsection (4), proceedings for the recovery of an amount of excise duty may not be instituted, or other action for such recovery taken, unless a notice of assessment, or another notification in writing stating that such amount is due, has been issued by the Commissioners before the expiry of a period of 4 years from—

(a) except where paragraph (b) applies, the date of the transaction giving rise to the liability to that amount,

(b) where the liability is in respect of a taxable period, the last day of such period.

(4) (a) Subsections (2) and (3) shall not apply in any case where there are reasonable grounds to believe that any form of fraud or neglect has been committed by or on behalf of any person in connection with the liability concerned.

(b) For the purposes of paragraph (a), and subject to paragraph (c), ‘neglect’ means negligence or a failure to give any notice, information or record, or to make any return, required to be given or made under any provision of excise law, within such time limit as may be allowed under the provision concerned.

(c) A person who fails, within the time limit referred to in paragraph (b), to satisfy any requirement referred to in that paragraph shall be deemed not to have neglected to do so where the person—

(i) satisfies the requirements within such further time as the Commissioners may allow in any particular case, or

(ii) shows to the satisfaction of the Commissioners that there was sufficient excuse for such failure, and where such person satisfies the requirements as soon as possible thereafter.”,

(j) by deleting section 100,

(k) in section 103(2)(a) by substituting “Where any amount of excise duty becomes payable” for “Without prejudice to the provisions of section 74 of the Finance Act 2002 concerning betting duty, where any amount of excise duty becomes payable”,

(l) in section 103 by inserting the following subsection:

“(3) Where an amount of excise duty has been repaid to a person, and where all or part of that amount is then found not to be properly refundable under any provision of excise law, simple interest shall be paid by the person on that amount or part of that amount at the rate of 0.0274 per cent for each day from the date the repayment is made to the date on which it was returned to the Commissioners or otherwise accounted for to their satisfaction.”,

(m) in section 104 by substituting the following for subsections (1), (2) and (3):

“(1) Subject to such conditions as the Commissioners may prescribe or otherwise impose, a full relief from excise duty shall be granted, by way of remission or repayment, on any excisable products that are shown to the satisfaction of the Commissioners to be delivered—

(a) under diplomatic arrangements in the State,

(b) to international organisations recognised as such by the State, and the members of such organisations based in the State, within the limits and under the conditions laid down by international conventions establishing such organisations or by other agreements,

(c) for consumption under any agreement entered into between the State and a country other than a Member State where such agreement also provides for exemption from value-added tax,

(d) for export or re-export from the State to a place outside the European Union, or

(e) to a tax-free shop at an airport for supply to passengers travelling to a destination outside of the European Union.

(2) Subject to such conditions as the Commissioners may prescribe or otherwise impose, a full relief from excise duty shall be granted on any alcohol products or tobacco products released for consumption in another Member State which

(a) have been acquired by a private individual in such another Member State for his or her own use and not for commercial purposes, and

(b) are transported into the State by that private individual, and accompanied by him or her during such transportation.

(3) For the purpose of subsection (2) the question of whether the alcohol products or tobacco products, as the case may be, are for a private individual’s own use or are for commercial purposes shall be determined in accordance with regulations under section 153.”,

(n) in section 104 by inserting the following subsection:

“(5) Subject to such conditions as the Commissioners may prescribe or otherwise impose, a full relief from excise duty shall be granted, by way of repayment, on any excisable products that have been released for consumption in the State and which

(a) have been dispatched to another Member State in accordance with section 109V, or

(b) have been sold and dispatched by a State vendor to a private individual in another Member State in accordance with section 109W.”,

(o) by deleting section 105,

(p) by deleting section 105A,

(q) by substituting the following for section 105B:

“105B. (1) Subject to subsections (2) and (3), and without prejudice to the provisions of section 960H of the Taxes Consolidation Act 1997 relating to the offset of overpayments, where a person has, in respect of any period or transaction, paid an amount of excise duty, or interest on excise duty, which was not due, the Commissioners shall repay such amount to such person.

(2) Subject to subsection (3), a repayment shall only be made under subsection (1) where a claim for that repayment, in writing or such other form as the Commissioners may allow, is made to them within a period of 4 years from the date of payment to which the claim relates or from the date of any other transaction giving rise to an entitlement to a repayment.

(3) Subsection (2) does not apply where a person would, on due claim, be entitled to repayment of excise duty or interest paid on that duty under any other provision of excise law which provides for a shorter period within which a claim for repayment is to be made.

(4) Except as provided for by this section or by any other provision of excise law, or by section 941 of the Taxes Consolidation Act 1997 as it applies for the purposes of the duties of excise, the Commissioners shall not repay an amount of excise duty paid to them or pay interest in respect of an amount of excise duty paid to them.”,

(r) by deleting section 105C,

(s) in section 105D(1) by deleting the definition of “valid claim”,

(t) in section 108A(2) by substituting the following for paragraph (c):

“(c) the mixing or blending of excisable products with other excisable products or other materials, but only where

(i) excise duty has been paid in full on the excisable products so mixed or blended, and

(ii) the amount so paid is not less than the amount chargeable on the mixture or blend,

(d) the production by a private individual of wine, beer or other fermented beverage to which a relief from alcohol products tax under section 77(f) of the Finance Act 2003 applies.”,

and

(u) in section 109(7) by substituting the following for paragraph (b):

“(b) (i) Without prejudice to paragraph (a), and subject to subparagraph (ii), a tenant shall, at a level specified in the authorisation document, provide security for any excisable products received by such tenant as a consignee under a suspension arrangement.

(ii) Subparagraph (i) does not apply to consignments of mineral oil by sea that are received by a tenant and delivered immediately into storage tanks in the tax warehouse that are under the direct control of the proprietor.”.

71. Amendment of Chapter 2A (intra- European Union movement under a suspension arrangement) of Part 2 of Finance Act 2001.

71.— Chapter 2A of Part 2 of the Finance Act 2001 is amended—

(a) in section 109E by substituting the following for subsection (3):

“(3) Except where, in accordance with section 109I(1)(b), a consignment is accompanied by a paper document, a consignment from a place in the State to another Member State shall be dispatched under the computerised system and under cover of the electronic administrative document.”,

(b) in section 109H by inserting the following after subsection (3):

“(3A) In the case of a consignment of mineral oil, the Commissioners may, subject to such conditions as they may prescribe or otherwise impose, permit the consignor to split the consignment into 2 or more consignments—

(a) where the splitting is carried out—

(i) in the territory of a Member State that allows such splitting, and the Member State has informed the European Commission accordingly under Article 23 of the Directive, and

(ii) under the computerised system in accordance with Article 6(1) of the Commission Regulation, and the competent authority of the Member State referred to in paragraph (a) is, by such means, informed of the place where such splitting is to take place,

and

(b) where the quantity consigned does not change.”,

(c) in section 109J(3)(a) by substituting “such conditions as the Commissioners may prescribe or otherwise impose” for “such conditions as the Commissioners may prescribe”, and

(d) by deleting section 109P.

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

72.— Chapter 3 of Part 2 of the Finance Act 2001 is amended—

(a) in section 121 by substituting the following for paragraph (b):

“(b) to take possession or charge of any excisable products in the knowledge that an offence under paragraph (a) has been committed in relation to such excisable products.”,

(b) by substituting the following for section 122:

“122.— It is an offence under this section for any person to deliver any incorrect return, statement or accounts or to furnish any incorrect information—

(a) in connection with—

(i) any claim for relief or repayment under excise law,

(ii) the granting of a licence under section 101 of the Finance Act 1999, or

(iii) any application for—

(I) authorisation as an authorised warehousekeeper, or approval of a tax warehouse, under section 109,

(II) authorisation as a registered consignor under section 109A,

(III) registration as a registered consignee under section 109J, or

(IV) approval as a tax representative under section 109U,

or

(b) for any other purposes in relation to any duty of excise.”,

(c) in section 123 by deleting paragraph (a),

(d) in section 131(1) by substituting “any question of fact” for “any dispute”,

(e) in section 131(1) by substituting “the burden of proof shall rest” for “the burden of proof in such dispute shall rest”, and

(f) by deleting section 132.

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

73.— Chapter 4 of Part 2 of the Finance Act 2001 is amended—

(a) by substituting the following for section 133:

“133.— In this Chapter—

‘foreign packet’ means any item, addressed in the final form in which it is to be carried from a place outside the State and delivered to an address in the State, and includes a postal packet within the meaning of the Communications Regulation (Postal Services) Act 2011;

‘postal services’ has the same meaning as in the Communications Regulation (Postal Services) Act 2011;

‘officer’ means an officer of the Commissioners authorised by them in writing to exercise the powers conferred on officers by this Chapter.”,

(b) in section 135(1)(b) by substituting the following for subparagraph (ii):

“(ii) any excisable products being transported in or on, or in any manner attached to, the vehicle, are transported in accordance with any provision of Chapter 2A or 2B to which they may be subject, and conform in every material respect with the description of such excisable products in any electronic administrative document, simplified accompanying document, or other document that is required, under any such provision, for the consignment of the excisable products concerned, or

(iii) the vehicle has been, or is required to be, registered in any of the registers established and maintained under Chapter IV of Part II of the Finance Act 1992,”,

(c) in section 135(1)(d) by substituting the following for subparagraph (iii):

“(iii) to produce to the officer or accompanying officer any document referred to in paragraph (b)(ii).”,

(d) in section 136(1)(b) by substituting “carried on,” for “carried on, or”,

(e) in section 136(1) by substituting the following for paragraphs (bb) and (c):

“(c) bets liable to betting duty are reasonably believed to be accepted,

(d) any activity for the provision of postal services, or any other service for the delivery of foreign packets, is being, or is reasonably believed by the officer to be, carried on,

(e) any activity for the supply of electricity or natural gas is being, or is reasonably believed by the officer to be, carried on, or

(f) any records relating to, or reasonably believed by the officer to relate to, the products or activities referred to in paragraph (a), (b), (c) or (e) are kept, or are reasonably believed by such officer to be kept.”,

(f) in section 136(3) by substituting the following for paragraph (a):

“(a) carry out such search and investigation as such officer may consider to be proper, including the examination and the carrying out of searches, under section 135, of any vehicle on such premises or in such place,”,

(g) in section 136(3)(c) by substituting “subsection (1)(f)” for “subsection (1)(c)”,

(h) in section 136(3)(d) by substituting “subsection (1)(f)” for “subsection (1)(c)”,

(i) in section 136(3) by substituting the following for paragraph (e):

“(e) exercise the powers of detention under section 140 and of seizure under section 141.”,

(j) in section 136 by inserting the following after subsection (3):

“(3A) Where an authorised officer in or on any premises or place, referred to in subsection (1)(d) or pursuant to a warrant issued under subsection (5), has reason to believe that a foreign packet contains excisable products, and that any requirement—

(a) under excise law, for payment of the excise duty on such products, or

(b) for any declaration under Council Regulation 2913/92/EEC of 12 October 1992 [^6], Commission Regulation 2454/93/EEC of 2 July 1993 [^7], or Council Regulation 450/2008/EC of 23 April 2008 [^8], in relation to such foreign packet,

has not been complied with, then such officer may open such foreign packet and examine its contents.”,

(k) by inserting the following after section 136:

“Power to stop, question and search for intra- Community baggage.

136A.— An officer, on production of the authorisation of such officer if required to do so by any person affected, may require any person entering the State from another Member State to stop, and to give to such officer—

(a) the name, address and date of birth of such person,

(b) any information in relation to any excisable products that may be in the possession or charge of such person,

(c) such excisable products for examination,

and, where such officer has reason to believe that such person is committing an offence in relation to such excisable products under section 119 or 121, such officer may search the baggage of such person and examine any such excisable products.”,

and

(l) by deleting section 137.

74. Amendment of Chapter 5 (miscellaneous) of Part 2 of Finance Act 2001.

74.— Chapter 5 of Part 2 of the Finance Act 2001 is amended—

(a) in section 144A by substituting the following for subsection (2):

“(2) Any power, function or duty conferred or imposed on the Commissioners by any provision of section 108A, 109, 109A, subsections (3) and (4) of section 109J or subsection (2) of section 109U, may be exercised on their behalf and, subject to their direction and control, by an officer authorised by them in writing for the purposes of the provision concerned.”,

(b) in section 145(3) by inserting the following after paragraph (e):

“(ee) a refusal to grant a licence under section 101 of the Finance Act 1999, or a revocation under that section of any such licence that has been granted,”,