Waiver of Certain Tax, Interest and Penalties Act , 1993

1 Interpretation.

1.—(a) In this Act, except where the context otherwise requires—

“arrears of tax”, subject to section 2 (5) (a), has the meaning assigned to it by section 3 (2);

“Chief Special Collector” has the meaning assigned to it by section 7 (3);

“the declared amounts” has the meaning assigned to it by section 2 (3) (a) (iii);

“estimate” means an estimate of, or an assessment to, tax made in accordance with the provisions of—

(i) section 7 or 8 of the Finance Act, 1968,

(ii) section 17 of the Finance Act, 1970, and the regulations made thereunder, or

(iii) section 22 or 23 of the Value-Added Tax Act, 1972,

as the case may be;

“functions” includes powers and duties;

“inspector” means an inspector of taxes appointed under section 161 of the Income Tax Act, 1967;

“the Minister” means the Minister for Finance;

“relevant interest” means interest payable in accordance with the specified provisions;

“the relevant period” means any period ending on or before the 5th day of April, 1991;

“relevant tax” has the meaning assigned to it by section 2 (2);

“settlement amount” has the meaning assigned to it by section 2 (3) (b);

“the specified period” means the period beginning with the passing of this Act and ending on the 30th day of November, 1993;

“the specified provisions” means any provision of the Acts (within the meaning of section 2 or 3, as the case may be) pursuant to which a person may be liable—

(i) to interest in respect of tax (within the aforesaid meaning) which is unpaid, including interest on an undercharge of such tax which is attributable to fraud or neglect, or

(ii) to a fine or other penalty in respect of an offence or default.

(b) References in this Act to tax (within the meaning of section 2 or 3, as the case may be) being due and payable by a person include references to such tax which would have been due and payable by him if any return, statement or declaration (being a return, statement or declaration, as the case may be, which should have, but had not, been made by him in accordance with any provision of the Acts (within the aforesaid meaning)) had been so made and if that tax had been contained in an assessment made on the person or in an estimate issued to the person.

2 Waiver of certain tax and related interest and penalties.

2.—(1) In this section—

“the Acts” means—

(a) the Income Tax Acts (other than Chapter IV of Part V of the Income Tax Act, 1967, and section 17 of the Finance Act, 1970),

(b) the Capital Gains Tax Acts,

(c) section 16 of the Finance Act, 1983,

(d) the Health Contributions Act, 1979, and

(e) the Youth Employment Agency Act, 1981,

and any instruments made thereunder;

“income” means total income from all sources as estimated in accordance with the provisions of the Income Tax Acts after deducting from the income so much of any deduction allowed by virtue of the provisions referred to in section 33 of the Finance Act, 1975, as is to be deducted from or set off against that income in charging it to income tax;

“tax” means any tax, levy or contributions payable in accordance with any provision of the Acts.

(2) This section applies to an individual who, for the relevant period, was in receipt of income or had chargeable gains in respect of which any tax (referred to in this Act as “relevant tax”) due and payable by him in accordance with any provision of the Acts has not been paid:

Provided that—

(a) this section shall not apply to an individual if, before the 25th day of May, 1993 (hereafter in this proviso referred to as “the designated date”), he had been notified in writing by an inspector—

(i) that the inspector intended to make any enquiries or take any actions as are specified in section 15 of the Finance Act, 1988, in relation to the liability to tax of the individual for the relevant period, or

(ii) that any matter which occasions or may occasion a liability or further liability to tax of the individual for the relevant period is under investigation or enquiry by the inspector,

and such enquiries or actions, or investigation or enquiry, as the case may be, had not been concluded on or before the designated date, and for the purposes of this paragraph the aforesaid enquiries or actions, or investigation or enquiry, shall be deemed not to have been concluded unless an agreement has been reached between the individual and the inspector as to the liability to tax of the individual for the relevant period,

(b) relevant tax shall not include any sum—

(i) which, before the designated date, was certified in a certificate issued, and not withdrawn, under section 485 of the Income Tax Act, 1967,

(ii) which, before the designated date, was the subject of proceedings initiated, and not withdrawn, as a debt due to the Minister, in any court of competent jurisdiction,

(iii) which was tax contained in an assessment which was on the designated date the subject of an appeal to which the provisions of Part XXVI of the Income Tax Act, 1967, apply,

(iv) which, before the designated date, was entered as a specified amount in a notice of attachment issued, and not revoked, under section 73 of the Finance Act, 1988,

(v) which was not paid on or before the designated date by virtue of an arrangement or scheme the main purpose, or one of the main purposes, of which was the avoidance of liability to tax,

(vi) which, following enquiries made, or action taken, by an inspector pursuant to section 15 of the Finance Act, 1988, or any other investigation by an inspector, had been agreed before the designated date by an individual and an inspector as being the individual's tax liability,

(vii) being tax in respect of income or chargeable gains which arose from, or by reason of, an illegal source or activity (other than the evasion of tax or the non-compliance with the provisions relating to exchange control), or

(viii) paid or remitted in accordance with the provisions of section 3 in respect of arrears of tax.

(3) An individual to whom this section applies shall—

(a) within the specified period give a declaration in writing to the Chief Special Collector which—

(i) is made and signed by the individual,

(ii) is in a form prescribed by the Revenue Commissioners and approved of by the Minister,

(iii) contains, in relation to the individual, a full and true statement of the respective amounts (referred to in this Act as “the declared amounts”) of—

(I) the income, and

(II) the chargeable gains,

referred to in subsection (2), and

(iv) declares that neither the declared amounts nor any part of those amounts arose from, or by reason of, an unlawful source or activity (other than the evasion of tax or the non-compliance with the provisions relating to exchange control), and

(b) not earlier than the giving of the declaration referred to in paragraph (a) but on or before the 14th day of January, 1994, remit to the Chief Special Collector an amount (referred to in this Act as “the settlement amount”) equal to 15 per cent. of the declared amounts.

(4) On receipt by him of the declaration referred to in subsection (3) and the settlement amount, the Chief Special Collector shall give to the individual concerned—

(a) a certificate, in a form prescribed by the Revenue Commissioners and approved of by the Minister, stating, in relation to that individual—

(i) his name and address,

(ii) the settlement amount paid by him, and

(iii) the respective amounts of the declared amounts, and

(b) evidence, in a form prescribed by the Revenue Commissioners and approved of by the Minister, that such a certificate has been given.

(5) Notwithstanding any other provision of the Acts but subject to section 4, where an individual to whom this section applies complies with the provisions of subsection (3)—

(a) his liability to relevant tax in respect of the declared amounts—

(i) shall be deemed to be satisfied by the settlement amount, and

(ii) shall not be arrears of tax,

(b) any amount of relevant interest which the individual may have become liable for in relation to relevant tax in respect of the declared amounts shall be waived, and

(c) proceedings shall not be initiated or continued for the recovery of any fine or penalty to which the individual may be liable under any of the specified provisions in relation to relevant tax in respect of the declared amounts, nor shall the Revenue Commissioners seek or demand from the individual payment of any sum in lieu of such fine or penalty.

3 Waiver of certain interest and penalties in respect of certain tax.

3.—(1) (a) In this section—

“the Acts” means—

(i) the Acts within the meaning of section 2,

(ii) Chapter IV of Part V of the Income Tax Act, 1967,

(iii) section 17 of the Finance Act, 1970,

(iv) the Corporation Tax Acts,

(v) Part V of the Finance Act, 1920, and the enactments amending or extending that Part,

(vi) the Value-Added Tax Act, 1972, and the enactments amending or extending that Act,

(vii) the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act,

(viii) the Stamp Act, 1891, and the enactments amending or extending that Act, and

(ix) Part VI of the Finance Act, 1983, and the enactments amending or extending that Part,

and any instruments made thereunder;

“the due date” means, in relation to an amount of tax, the date on which a person becomes liable to interest under any of the specified provisions in respect of the late payment of that tax;

“tax” means any tax, duty, levy or contributions payable in accordance with any provision of the Acts.

(b) The reference in subsection (2) to an amount of tax due and payable shall, in a case where tax is assessed or estimated in an assessment or estimate against which an appeal has been made, be construed as a reference to the amount of tax which becomes due and payable on the determination of the appeal (within the meaning of section 550 (2A) (c) of the Income Tax Act, 1967) or, pending such determination, the tax as assessed or estimated.

(2) This section applies to a person who had not paid or remitted before the due date an amount of tax (in this Act referred to as “arrears of tax”) due and payable by him, or chargeable, in accordance with any provision of the Acts in respect of or during the relevant period.

(3) Where a person to whom this section applies has unpaid arrears of tax on the passing of this Act, he shall on or before the 14th day of January, 1994, and subject to the provisions of subsection (6), pay or remit those arrears of tax.

(4) Notwithstanding any other provision of the Acts but subject to the provisions of subsection (5) and section 4, where a person has paid or remitted, on or before the 14th day of January, 1994, his arrears of tax—

(a) any amount of relevant interest to which the person may be liable in relation to arrears of tax and which is unpaid at the date of the payment or remittance referred to in subsection (3) shall be waived,

(b) any amount of relevant interest in relation to arrears of tax which is paid by the person on or after the 26th day of May, 1993, shall be refunded to him, and

(c) proceedings shall not be initiated or continued for the recovery of any fine or penalty to which the person may be liable under any of the specified provisions in relation to arrears of tax, nor shall the Revenue Commissioners seek or demand from the person payment of any sum in lieu of such fine or penalty.

(5) This section shall not apply to any interest, fine or other penalty that—

(a) in the case of a fine or other penalty, is imposed by a court under any of the Acts,

(b) in the case of interest, is ordered by a court in any proceedings for the recovery of tax or interest to be paid by a person, or

(c) in any case, is included in a specified sum such as is referred to in subsection (2) (c) of section 23 of the Finance Act, 1983, where the full amount of the specified sum was not paid on or before the 25th day of May, 1993.

(6) (a) Where a payment or remittance in accordance with the provisions of subsection (3) is made by an individual who also remits a settlement amount, then, without prejudice to the amount of that payment or remittance, so much of that payment or remittance as is referable to value-added tax may be remitted to the Chief Special Collector.

(b) Where, in accordance with paragraph (a), an individual makes a remittance to the Chief Special Collector, the individual by whom the remittance is made shall on the earlier of—

(i) the date of payment, or

(ii) a date within the specified period,

give a declaration in writing to the Chief Special Collector which—

(I) is made and signed by the individual,

(II) is in a form prescribed by the Revenue Commissioners and approved of by the Minister, and

(III) contains, in relation to that individual, a full and true statement of the amount of value-added tax comprised in the arrears of tax.

(c) On receipt by him of the declaration referred to in paragraph (b) and the remittance referred to in paragraph (a), the Chief Special Collector shall give to the individual by whom the remittance is made—

(i) a certificate, in a form prescribed by the Revenue Commissioners and approved of by the Minister, stating, in relation to that individual—

(I) his name and address, and

(II) the amount of the said remittance, and

(ii) evidence, in a form prescribed by the Revenue Commissioners and approved of by the Minister, that such a certificate has been given.

(7) Section 23 (4) of the Finance Act, 1983, is hereby amended by the substitution of the following paragraph for paragraph (aa) (inserted by section 72 of the Finance Act, 1988):

“(aa) the provisions of section 72 of the Finance Act, 1988, or section 3 of the Waiver of Certain Tax, Interest and Penalties Act, 1993, apply, or”.

4 Non-application of sections 2 (5) and 3 (4).

4.—(1) The provisions of sections 2 (5) and 3 (4) shall not apply, and those provisions shall be deemed never to have applied, to a person where—

(a) such person fails—

(i) if he is an individual, for the year of assessment 1992-93, or

(ii) in any other case, for any accounting period ending in the year beginning on the 1st day of January, 1993, and ending on the 31st day of December, 1993,

to duly deliver a return of income on or before the specified date in relation to that return, or

(b) (i) a declaration given by such person to the Chief Special Collector under subsection (3) (a) of section 2—

(I) did not contain a full and true statement of the kind referred to in subparagraph (iii) of the said subsection, or

(II) is proven to be false in so far as the requirements of subparagraph (iv) of the said subsection are concerned,

or

(ii) a declaration given by him to the Chief Special Collector under subsection (6) (b) of section 3 did not contain a full and true statement of the kind referred to in subparagraph (III) of the said subsection, or

(c) the amount paid or remitted by him in respect of arrears of tax was less than the arrears of tax due and payable by him,

and any certificate issued to that person pursuant to section 2 (4) or section 3 (6) (c) shall be null and void.

(2) Where, by virtue of this section, section 2 (5) does not apply and is deemed never to have applied to an individual, the amount paid by him as the settlement amount shall be treated as a payment on account of relevant tax.

(3) (a) In subsection (1) “return of income” and “specified date” have the meanings assigned to them by section 48 of the Finance Act, 1986.

(b) The provisions of subsection (1) (b) of section 48 of the Finance Act, 1986, shall apply for the purposes of subsection (1) (a) of this section as they apply for the purposes of that section.

5 Enquiries or action by inspector or other officer.

5.—(1) Where, in relation to any liability to tax (within the meaning of section 2 or 3, as the case may be) of an individual for the relevant period, being tax which has been remitted to the Chief Special Collector, an inspector or other officer of the Revenue Commissioners commences to make such enquiries, or take such action, as are within his powers, or gives a notice in writing to an individual of his intention to make such enquiries or take such action in relation to such liability to tax and the individual produces to the inspector or other officer, not later than 30 days from the commencement of the said enquiries or the taking of the said action, or the giving of the notice as aforesaid, a certificate referred to in section 2 (4) or 3 (6) (c), as the case may be, in respect of such liability to tax given to him by the Chief Special Collector, the inspector or other officer shall, on production to him of the said certificate and on validation of that certificate in accordance with the provisions of paragraph (a) of the proviso to section 7 (4), be precluded from continuing with or commencing the said enquiries or continuing with or commencing the said action unless, on application by him to the Appeal Commissioners, he shows to the satisfaction of those Commissioners that—

(a) enquiries made or action taken in relation to the liability to tax (within the aforesaid meaning) of the individual for any period commencing on or after the 6th day of April, 1991, indicate, or

(b) there are other reasonable grounds which indicate,

that a declaration made by the individual to the Chief Special Collector under section 2 (3) (a) or 3 (6) (b) did not contain a full and true statement of the declared amounts or the amount of value-added tax comprised in the arrears of tax, as the case may be.

(2) (a) An application by the inspector or other officer under subsection (1) shall be made by him by notice in writing to the Appeal Commissioners within 30 days of the receipt by him from the individual concerned of the certificate referred to in section 2 (4) or 3 (6) (c), as the case may be, given to that individual by the Chief Special Collector, and a copy of the application shall be furnished as soon as practicable by the inspector or other officer to the individual concerned.

(b) An application under subsection (1) shall, with any necessary modifications, be heard by the Appeal Commissioners as if it were an appeal against an assessment to income tax.