Finance Act , 1995

(b) a means of transport other than a new means of transport from a person in another Member State who was not entitled to deduct, under the provisions implementing Article 17 of Council Directive No. 77/388/EEC of 17 May 1977 in that Member State, any value-added tax referred to in that Directive in respect of that person's purchase, intra-Community acquisition or importation of that means of transport, or

(c) a means of transport from a taxable person who has exercised the entitlement under section 12 (1) (a) (vi) to deduct the residual tax in respect of that person's supply of that means of transport to the said dealer, or

(d) a means of transport other than a new means of transport from a taxable dealer in another Member State who has applied the provisions implementing Article 26a or 28o (inserted by Council Directive No.94/5/EC of 14 February 1994) of Council Directive No. 77/388/EEC of 17 May 1977 to the supply of that means of transport, in that other Member State.

(3) In this section—

‘taxable dealer’ means a taxable person who in the course or furtherance of business, whether acting on that person's own behalf, or on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, purchases or acquires means of transport as stock-in-trade with a view to resale, and a person in another Member State shall be deemed to be a taxable dealer where, in similar circumstances, that person would be a taxable dealer in the State under this section;

‘means of transport’ means motorised land vehicles with an engine cylinder capacity exceeding 48 cubic centimetres or a power exceeding 7.2 kilowatts, vessels exceeding 7.5 metres in length and aircraft with a take-off weight exceeding 1,550 kilogrammes, which are intended for the transport of persons or goods, other than vessels and aircraft of the kind referred to in paragraph (v) of the Second Schedule.

(4) The residual tax which may be deducted by a taxable dealer in accordance with section 12 (1) (a) (vi) shall be the residual tax deemed to be included in the purchase price payable by such dealer when acquiring a means of transport and shall be determined by the formula—

A	B __ B 100

where—

A is the purchase price of the means of transport, and

B is the percentage rate of tax specified—

(a) in section 11 (1) (a) where the means of transport is deemed to be supplied within the State to the taxable dealer, or

(b) in provisions implementing Article 12 (1) of Council Directive No. 77/388/EEC of 17 May 1977 in another Member State where the means of transport is deemed to be supplied within that Member State to the taxable dealer:

Provided that, subject to subsection (8), where the amount so calculated is in excess of the tax chargeable on the supply by the taxable dealer of the means of transport, the residual tax shall be an amount equal to the amount of tax chargeable on that supply.

(5) Notwithstanding section 17, where a taxable dealer deducts residual tax referred to in subsection (1) in respect of a supply of a means of transport, that dealer shall not indicate separately the amount of tax chargeable in respect of that supply on any invoice or other document issued in lieu thereof in accordance with that section.

(6) Notwithstanding section 3 (6) (d), in the case of a supply of a means of transport which is dispatched or transported and where—

(a) a taxable dealer deducts residual tax referred to in subsection (1) in respect of the supply of that means of transport, or

(b) a taxable dealer in another Member State has applied the provisions implementing Article 26a or 28o of Council Directive No. 77/388/EEC of 17 May 1977 in that other Member State, to the supply of that means of transport,

the place of supply shall be deemed to be the place where the dispatch or transportation begins.

(7) Where a taxable dealer deducts residual tax referred to in subsection (1) in respect of a supply of a means of transport, then, subject to subsection (8), the provisions of section 11 (1) (b) shall not apply in respect of that supply.

(8) Notwithstanding subsection (7), where a taxable dealer deducts residual tax referred to in subsection (1) in respect of the supply of a new means of transport dispatched or transported by the supplier to a person in another Member State, the provisions of section 11 (1) (b) shall apply, and in determining the amount of the residual tax in accordance with subsection (4) the proviso to that subsection shall not apply.

(9) Where a taxable dealer supplies a means of transport on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, the means of transport shall be deemed to have been supplied by that other person to the taxable dealer when the said taxable dealer supplies that means of transport.

(10) Notwithstanding paragraph (xxiv) of the First Schedule, the provisions of that paragraph shall not apply to—

(a) a supply by a taxable person of a means of transport, other than a motor vehicle as defined in section 12 (3) (b), which that person acquired from a taxable dealer who deducted residual tax in respect of the supply of that means of transport to that person, and

(b) a supply by a taxable person other than a taxable dealer of a motor vehicle, as defined in section 12 (3) (b), which that person acquired as stock-in-trade or for the purposes of a business which consists in whole or part of the hiring of motor vehicles or for use, in a driving school business, for giving driving instruction, from a taxable dealer who deducted residual tax in respect of the supply of that motor vehicle to that person.”.

131 Amendment of section 14 (determination of tax due by reference to cash receipts) of Principal Act.

131.—Section 14 (inserted by the Act of 1978) of the Principal Act is hereby amended by the insertion of the following subsection after subsection (1A) (inserted by the Act of 1992):

“(1B) (a) The Minister may, by order—

(i) increase the amount specified in subsection (1) (b), or

(ii) where an amount stands specified by virtue of an order under this paragraph, including an order relating to this subparagraph, further increase the amount so specified.

(b) An order under paragraph (a) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next twenty-one sitting days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”.

132 Amendment of section 17 (invoices) of Principal Act.

132.—Section 17 of the Principal Act is hereby amended by the substitution of the following proviso for the proviso to subsection (1B) (inserted by the Act of 1992):

“Provided that this provision shall not apply—

(a) to taxable persons whose taxable turnover in respect of supplies of goods to other taxable persons has not exceeded £2,000,000 in the previous period of 12 months, and

(b) in any event, in respect of all such supplies made in the taxable periods commencing on or after the 1st day of May, 1995.”.

133 Amendment of section 18 (inspection and removal of records) of Principal Act.

133.—Section 18 of the Principal Act is hereby amended in subsection (1A) (inserted by the Act of 1992), in paragraph (a) by the insertion after “thereon” of “and the value and description of any gifts or promotional items given by him to any person in connection with such supplies or any other payments made by him to any person in connection with such supplies”.

134 Amendment of section 19 (tax due and payable) of Principal Act, etc.

134.—(1) Section 19 of the Principal Act is hereby amended in the definition of “accounting period” in subparagraph (i) of paragraph (aa) (inserted by the Finance Act, 1989) of subsection (3) by the substitution of the following definition for the definition of “accounting period”:

“‘accounting period’ means a period, as determined by the Collector-General from time to time in any particular case, consisting of a number of consecutive taxable periods not exceeding six or such other period not exceeding a continuous period of twelve months as may be specified by the Collector-General:

Provided that—

(I) where an accounting period begins before the end of a taxable period, the period of time from the beginning of the accounting period to the end of the taxable period during which the accounting period begins shall, for the purposes of this paragraph, be treated as if such period of time were a taxable period, and

(II) where an accounting period ends after the beginning of a taxable period* the period of time from the beginning of the taxable period during which the accounting period ends to the end of the accounting period shall, for the purposes of this paragraph, be treated as if such period of time were a taxable period,

and any references in this paragraph to a taxable period shall be construed accordingly;”.

(2) Subsection (1) shall take effect as on and from such day or days as the Minister for Finance may by order or orders appoint, either generally or with reference to any particular category of taxable person to whom section 19 (3) (aa) of the Value-Added Tax Act, 1972, applies.

135 Amendment of section 20 (refund of tax) of Principal Act.

135.—Section 20 of the Principal Act is hereby amended by the insertion of the following subsection after subsection (5) (inserted by the Act of 1992):

“(6) Where the Revenue Commissioners refund any amount due under subsection (1) or subsection (5), they may if they so determine refund any such amount directly into an account, specified by the person to whom the amount is due, in a financial institution.”.

136 Amendment of section 22 (estimation of tax due for a taxable period) of Principal Act.

136.—Section 22 of the Principal Act is hereby amended in subsection (1) by the insertion of the following proviso to that subsection:

“Provided that where the Revenue Commissioners are satisfied that the amount so estimated is excessive, they may amend the amount so estimated by reducing it and serve notice on the person concerned of the revised amount estimated and such notice shall supersede any previous notice issued under this subsection.”.

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

137.—Section 25 of the Principal Act is hereby amended—

(a) in subsection (1) by the insertion after paragraph (ab) (inserted by the Act of 1992) of the following paragraph:

“(ac) a determination under section 8(3E),”,

and

(b) by the insertion of the following subsection after subsection (1):

“(1A) Where a person is aggrieved by a decision of the Revenue Commissioners that such person is not a taxable person then such person may, on giving notice in writing to the Revenue Commissioners within twenty-one days after the notification of that decision to such person, appeal to the Appeal Commissioners.”,

and

(c) in subsection (2) by the insertion after paragraph (d) of the following paragraph:

“(dd) the refusal of an application for an appeal hearing;”.

138 Amendment of section 32 (regulations) of Principal Act.

138.—Section 32 of the Principal Act is hereby amended in subsection (1) by the insertion of the following paragraphs after paragraph (d):

“(da) the conditions for a taxable dealer to opt to apply the margin scheme to certain supplies in accordance with section 10A(4);

(db) the determination of the aggregate margin in accordance with section 10A(8);

(dc) the form of the invoice or other document that shall be issued in accordance with section 10B(4);

(dd) the manner in which residual tax referred to in section 12(l)(a)(vi) may be deducted;

(de) the particulars to be furnished in relation to antiques as specified in paragraph (xvia) of the Sixth Schedule or paragraph (iii) of the Eighth Schedule;”.

139 Amendment of First Schedule to Principal Act.

139.—The First Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended—

(a) in paragraph (i) by the substitution of the following subparagraph for subparagraph (e):

“(e) the granting and the negotiation of credit and the management of credit by the person granting it,”,

and

(b) in paragraph (xxiii) by the insertion after “organisations” of “with the exception of facilities to which paragraph (viib) or (viic) of the Sixth Schedule refers”.

140 Amendment of Sixth Schedule to Principal Act.

140.—The Sixth Schedule (inserted by the Act of 1992) to the Principal Act is hereby amended—

(a) by the insertion of the following paragraphs after paragraph (viia) (inserted by the Act of 1992)—

“(viib) the provision by a member-owned golf club of facilities for taking part in golf to any person, other than an individual whose membership subscription to that club at the time the facilities are used by that individual entitles that individual to use such facilities without further charge on at least 200 days (including the day on which such facilities are used by that individual) in a continuous period of twelve months, where the total consideration received by that club for the provision of such facilities has exceeded or is likely to exceed £20,000 in any continuous period of twelve months and, for the purposes of this paragraph, the provision of facilities for taking part in golf shall not include the provision of facilities for taking part in pitch and putt;

(viic) the provision by a non-profit making organisation, other than an organisation referred to in paragraph (viib), of facilities for taking part in golf to any person where the total consideration received by that organisation for the provision of such facilities has exceeded or is likely to exceed £20,000 in any continuous period of twelve months and, for the purposes of this paragraph, the provision of facilities for taking part in golf shall not include the provision of facilities for taking part in pitch and putt;”,

(b) by the substitution of the following paragraph for paragraph(xvi)—

“(xvi) a work of art being—

(a) a painting, drawing or pastel, or any combination thereof, executed entirely by hand, excluding hand-decorated manufactured articles and plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes,

(b) an original lithograph, engraving, or print, or any combination thereof, produced directly from lithographic stones, plates or other engraved surfaces, which are executed entirely by hand, or

(c) an original sculpture or statuary, excluding mass-produced reproductions and works or craftsmanship of a commercial character,

but excluding the supply of such work of art by a taxable dealer in accordance with the provisions of subsection (3) or (8) of section 10A or by an auctioneer within the meaning of section 10B and in accordance with the provisions of subsection (3) of section 10B;”,

(c) by the insertion of the following paragraph after paragraph (xvi)—

“(xvia) antiques being, subject to and in accordance with regulations, articles of furniture, silver, glass or porcelain, whether hand-decorated or not, specified in the said regulations, which are shown to the satisfaction of the Revenue Commissioners to be more than 100 years old, other than goods specified in paragraph (xvi), but excluding the supply of such antiques by a taxable dealer in accordance with the provisions of subsection (3) or (8) of section 10A or by an auctioneer within the meaning of section 10B and in accordance with the provisions of subsection (3) of section 10B;”,

(d) in subparagraph (b) of paragraph (xviii) by the substitution of “used” for “second-hand”,

(e) by the insertion of the following paragraph after paragraph (xx)—

“(xxa) greyhound feeding stuff, which is packaged, advertised or held out for sale solely as greyhound feeding stuff, and which is supplied in units of not less than 10 kilograms;”,

(f) in paragraph (xxxii) by the insertion after “pour” of “but excluding the supply of such goods by a taxable dealer in accordance with the provisions of subsection (3) or (8) of section 10A or by an auctioneer within the meaning of section 10B and in accordance with the provisions of subsection (3) of section 10B”, and

(g) in paragraph (xxxiii) by the insertion after “(Irish Standard 20: Part I: 1987)” of “but excluding the supply of such goods by a taxable dealer in accordance with the provisions of subsection (3) or (8) of section 10A or by an auctioneer within the meaning of section 10B and in accordance with the provisions of subsection (3) of section 10B”.

141 Addition of Eighth Schedule to Principal Act.

141.—The Principal Act is hereby amended by the addition of the following Schedule:

“EIGHTH SCHEDULE

WORKS OF ART, COLLECTORS' ITEMS AND ANTIQUES CHARGEABLE AT THE RATE SPECIFIED IN SECTION 11 (1) (d) IN THE CIRCUMSTANCES SPECIFIED IN SECTION 11 (1AA)

(i) Works of art:

Every work of art being—

(a) a picture (other than a painting, drawing or pastel specified in paragraph (xvi) of the Sixth Schedule), collage or similar decorative plaque, executed entirely by hand by an artist, other than—

(I) plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes,

(II) hand-decorated manufactured articles, and

(III) theatrical scenery, studio back cloths or the like of painted canvas,

(b) a sculpture cast the production of which is limited to eight copies and supervised by the artist or by the artist's successors in title provided that, in the case of a statuary cast produced before the 1st day of January, 1989, the limit of eight copies may be exceeded where so determined by the Revenue Commissioners,

(c) a tapestry or wall textile made by hand from original designs provided by an artist, provided that there are not more than eight copies of each,

(d) individual pieces of ceramics executed entirely by an artist and signed by the artist,

(e) enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery, goldsmiths' wares and silversmiths' wares, or

(f) a photograph taken by an artist, printed by the artist or under the artist's supervision, signed and numbered and limited to 30 copies, all sizes and mounts included, other than photographs specified in paragraph (xxii) (a) of the Sixth Schedule;

(ii) Collectors' items:

Every collectors' item being one or more—

(a) postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, franked, or if unfranked not being of legal tender and not being intended for use as legal tender, or

(b) collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic or numismatic interest;

(iii) Antiques:

Every antique being, subject to and in accordance with regulations, one or more goods which are shown to the satisfaction of the Revenue Commissioners to be more than 100 years old, other than goods specified in paragraph (xvi), (xvia) or (xxii) (a), of the Sixth Schedule or in paragraph (i) or (ii) of this Schedule.”.

PART IV Stamp Duties

142 Levy on banks.

142.—(1) In this section—

“assessable amount” means the amount shown as the assessable amount in the statement delivered to the Revenue Commissioners pursuant to section 89 of the Finance Act, 1991;

“bank” means a person who, on the 1st day of September, 1990, was the holder of a licence granted under section 9 of the Central Bank Act, 1971, or the successors or assigns of such person.

(2) A bank shall deliver to the Revenue Commissioners, not later than the 12th day of September in each of the years 1995 and 1996, a statement in writing showing the assessable amount for that bank.

(3) (a) There shall be charged on the statement delivered not later than the 12th day of September, 1995, pursuant to subsection (2) a stamp duty of an amount equal to two-thirds of the sum of the following:

(i) 0.26 per cent. of that part of the assessable amount shown therein that does not exceed £135,000,000, and

(ii) 03865 per cent. of that part of the assessable amount shown therein that exceeds £135,000,000:

Provided that in the case where the assessable amount shown in the statement does not exceed £135,000,000 stamp duty of an amount equal to two-thirds of 0.26 per cent. of the assessable amount shown therein shall be charged.

(b) There shall be charged on the statement delivered not later than the 12th day of September, 1996, pursuant to subsection (2) a stamp duty of an amount equal to one-third of the sum of the following:

(i) 0.26 per cent. of that part of the assessable amount shown therein that does not exceed £135,000,000, and

(ii) 0.3865 per cent. of that part of the assessable amount shown therein that exceeds £135,000,000:

Provided that in the case where the assessable amount shown in the statement does not exceed £135,000,000 stamp duty of an amount equal to one-third of 0.26 per cent. of the assessable amount shown therein shall be charged.

(4) The duty charged by subsection (3) upon a statement delivered by a bank pursuant to subsection (2) shall be paid by the bank upon delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by a bank such particulars as they may deem necessary in relation to any statement required by this section to be delivered by the bank.

(6) In the case of failure by a bank to deliver any statement required by subsection (2) within the time provided for in that subsection or of failure to pay the duty chargeable on any such statement on the delivery thereof, the bank shall, from the date of the passing of this Act until the day on which the duty is paid, be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 15 per cent. per annum and also from the 12th day of September in each of the years 1995 and 1996, as the case may be, by way of further penalty, a sum equal to 1 per cent. of the duty for each day the duty remains unpaid and each penalty shall be recoverable in the same manner as if the penalty were part of the duty.

(7) The delivery of any statement required by subsection (2) may be enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853, in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(8) Except as provided for in section 45 of the Finance Act, 1992, the stamp duty charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty (being tax or duty under the care and management of the Revenue Commissioners) payable by the bank.

(9) Where a company, which was a bank on the 1st day of September, 1990, and which was or is a member of a group within the meaning of section 45 of the Finance Act, 1992, ceases to be a bank, any stamp duty payable by such company by virtue of subsection (4) and which remains unpaid shall be payable by any other bank which is a member of the group, in the same manner as if it was part of the liability of such bank:

Provided that where there is more than one bank in the group, each such bank shall be liable to pay a portion of such unpaid duty which shall be an amount which bears to the unpaid duty the same proportion as the liability of each bank in the group bears to the total liability of the group, but excluding, in the case of each such liability, such unpaid duty.

143 Amendment of section 19 (conveyance or transfer on sale— limit on stamp duty in the case of certain transactions between bodies corporate) of Finance Act, 1952.

143.—(1) Section 19 of the Finance Act, 1952, is hereby amended—

(a) by the substitution of the following subsection for subsection (1) (inserted by the Finance Act, 1982):

“(1) Stamp duty shall not be chargeable under or by reference to the headings ‘CONVEYANCE or TRANSFER on sale of any stocks or marketable securities’ (inserted by the Finance Act, 1992) or ‘CONVEYANCE or TRANSFER on sale of a policy of insurance or a policy of life insurance where the risk to which the policy relates is located in the State’ (inserted by the Finance Act, 1992) or ‘CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance’ (as amended by the Finance Act, 1992) in the First Schedule to the Stamp Act, 1891, on any instrument to which this section applies:

Provided that that instrument has, in accordance with the provisions of section 12 of the Stamp Act, 1891, been stamped with a particular stamp denoting that it is not chargeable with any duty or that it is duly stamped.”,

(b) by the deletion of subsection (4), and

(c) by the substitution of the following subsection for subsection (6):

“(6) If—

(a) where any claim for exemption from duty under this section has been allowed, it is subsequently found that any declaration or other evidence furnished in support of the claim was untrue in any material particular, or

(b) the transferor and transferee cease to be associated within the meaning of subsection (2) of this section within a period of two years from the date of the conveyance or transfer,

then the exemption shall be deemed not to have been allowed, and an amount equal to the duty remitted shall forthwith be a debt due from the transferor and transferee jointly and severally to the Minister for Finance for the benefit of the Central Fund and be payable to the Revenue Commissioners and the said amount shall be recoverable in any court of competent jurisdiction and subsection (2) (inserted by the Finance Act, 1979) of section 69 of the Finance Act, 1973, shall apply as if the duty was the stamp duty referred to in that subsection and the date of the conveyance was a date one month after the date of the transaction referred to in that subsection, and with any other necessary modifications.”.

(2) This section shall have effect with respect to instruments executed on or after the 8th day of February, 1995.

144 Relief from stamp duty in case of reconstructions or amalgamations of companies.

144.—(1) Section 31 of the Finance Act, 1965, is hereby amended—

(a) by the insertion after subsection (1) of the following subsection:

“(1A) This section shall not apply unless the scheme of reconstruction or amalgamation is effected for bona fide commercial reasons and does not form part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to stamp duty, income tax, corporation tax, capital gains tax or capital acquisitions tax.”,

(b) by the insertion after subsection (7) of the following subsection:

“(7A) For the removal of doubt it is hereby declared that references in this section to ‘transferee company’ are references only to a company with limited liability.”.

(2) Notwithstanding anything to the contrary in section 31 of the Finance Act, 1965, that section shall apply where—

(a) the transferee company or particular existing company referred to in that section is a company which is incorporated in another Member State of the European Union and which corresponds, under the laws of that Member State, to a transferee company or particular existing company within the meaning of that section, and

(b) subject to any necessary modifications for the purpose of so corresponding, all the other provisions of that section are met.

(3) Section 70 of the Finance Act, 1989, and section 117 of the Finance Act, 1990, are hereby repealed.

145 Amendment of Chapter II (stamp duty on capital companies) of Part IV of Finance Act, 1973.

145.—Chapter II of Part IV of the Finance Act, 1973, is hereby amended by the insertion of the following section after section 67B (inserted by section 110 of the Finance Act, 1991):

“Further restriction of application (Chapter II).

67C.—(1) This Chapter shall not apply to any investment limited partnership within the meaning of section 3 of the Investment Limited Partnerships Act, 1994.

(2) This section shall have effect on or after the 12th day of April, 1995.”.

146 Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982.

146.—Section 92 of the Finance Act, 1982, is hereby amended in subsection (1)—

(a) by the substitution of “policies of insurance to the extent that the risks to which those policies relate are located in the State (being risks deemed to be located in the State by virtue of section 208 of the Finance Act, 1992)” for “business carried on by the insurer in the State on or after the 1st day of August, 1982” in the definition of “assessable amount”, and

(b) by the insertion of the following paragraph after paragraph (c) of the definition of “excluded amount”:

“(d) a premium received in respect of health insurance business (being health insurance business within the meaning of section 2 of the Health Insurance Act, 1994);”.

147 Amendment of section 208 (location of insurance risk for stamp duty purposes) of Finance Act, 1992.

147.—Section 208 of the Finance Act, 1992, is hereby amended by the substitution of the following paragraph for paragraph (d):

“(d) in any other case, if the policyholder has his or her habitual residence in the State, or where the policyholder is a legal person other than an individual, if the policyholder's establishment (being an establishment within the meaning set out in Article 4 (1) of the European Communities (Non-Life Insurance) (Amendment) (No. 2) Regulations, 1991 (S.I. No. 142 of 1991)) to which the policy relates is situated in the State.”.

148 Amendment of section 106 (exemption from stamp duty of certain loan capital and securities) of Finance Act, 1993.

148.—Section 106 of the Finance Act, 1993 (as amended by section 106 of the Finance Act, 1994), is hereby amended in subsection (2)—

(a) by the deletion of “the transfer of loan capital of a company or other body corporate”,

(b) by the substitution in paragraph (a) of “the transfer of loan capital of a company or other body corporate which” for “loan capital which”,

(c) by the deletion of subparagraph (i) of paragraph (a),

(d) by the substitution of the following subparagraph for subparagraph (ii) of paragraph (a):

“(ii) does not carry a right of conversion into stocks or marketable securities (other than loan capital) of a company having a register in the State or into loan capital having such a right,”,

and

(e) by the insertion of “the issue or transfer of” before “securities issued by a qualifying company” in paragraph (b).

149 Amendment of section 107 (particulars to be delivered in cases of transfers and leases) of Finance Act, 1994.

149.—Section 107 of the Finance Act, 1994, is hereby amended—

(a) in subsections (1) and (3), by the substitution of “transferee or lessee” for “transferor or lessor”, and

(b) in subsection (6)—

(i) by the deletion of “‘transferor’, ‘lessor’,”, and

(ii) by the insertion of “, and references to a ‘transferee’ or a ‘lessee’ include the personal representatives of any transferee or lessee” after “Finance (1909-10) Act, 1910”.

150 Stock borrowing.

150.—(1) In this section—

“equivalent stock” means stock of an identical type, nominal value, description and amount as was so obtained from the lender or where, since the date of the stock borrowing, such stock has been paid or has been converted, subdivided, consolidated, redeemed, made the subject of a takeover, call on partly paid stock, capitalisation issue, rights issue, distribution or other similar event, then “equivalent stock” means—

(a) in the case of conversion, subdivision or consolidation, the stock into which the borrowed stock has been converted, subdivided or consolidated,

(b) in the case of redemption, a sum of money equivalent to the proceeds of the redemption,

(c) in the case of takeover, a sum of money or stock, being the consideration or alternative consideration which the lender has directed the stock borrower to accept,

(d) in the case of a call on partly paid stock, the paid-up stock:

Provided that the lender shall have paid to the stock borrower the sum due,

(e) in the case of a capitalisation issue, the borrowed stock together with the stock allotted by way of a bonus thereon,

(f) in the case of a rights issue, the borrowed stock together with the stock allotted thereon, which the lender has directed the borrower to take up:

Provided that the lender shall have paid to the stock borrower all and any sum due in respect thereof,

(g) in the event that a distribution is made in respect of the borrowed stock in the form of stock or a certificate which may at a future date be exchanged for stock or where an option is exercised to take a distribution in the form of stock or a certificate which may at a future date be exchanged for stock, the borrowed stock together with stock or a certificate equivalent to those allotted, and

(h) in the case of any event similar to any of the foregoing, the borrowed stock together with or replaced by a sum of money or stock equivalent to that received in respect of such borrowed stock resulting from such events;

“stock” means stock quoted on a recognised stock exchange;

“stock borrower” means a broker or dealer who is a member of the Irish unit of the International Stock Exchange of the United Kingdom and Republic of Ireland Limited, or who is a member of the limited company incorporated or to be incorporated in the State to operate as the Irish Stock Exchange, and is recognised by the committee of that unit or the Irish Stock Exchange as carrying on the business of a broker or dealer;

“stock borrowing” means a transaction in which a stock borrower—

(a) for the sole purpose of completing a contract for the sale of stock entered into by the said stock borrower in the course of that borrower's business as a broker or dealer obtains from a person (in this section referred to as “the lender”) stock of the kind required for that purpose, and

(b) gives an undertaking to provide to the lender, not later than three months after the date on which the said stock borrower obtained the stock referred to in paragraph (a), equivalent stock;

“stock return”, in relation to a stock borrowing, means a transaction or transactions in which, in respect of such stock borrowing, the undertaking referred to in paragraph (b) of the definition of “stock borrowing” is carried out within the period referred to in that paragraph.

(2) Stamp duty shall not be chargeable on a stock borrowing or on a stock return.

(3) If and to the extent that the stock borrower does not return or cause to be returned to the lender before the expiration of the period of three months from the date of the stock borrowing equivalent stock the stock borrower shall pay to the Revenue Commissioners within 14 days after the expiration of that period the amount of ad valorem duty which would have been chargeable on the stock so obtained if this section had not been enacted and if any stock borrower fails to duly pay any sum which that borrower is liable to pay under the provisions of this subsection, that sum, together with interest thereon at the rate of 1.25 per cent. per month or part of a month from the first day after the expiration of the said period of three months to the date of payment of that sum and, by way of further penalty, a sum equal to 1 per cent. of the duty for each day the duty remains unpaid, shall be recoverable from the stock borrower as a debt due to the Minister for Finance for the benefit of the Central Fund.

(4) Every stock borrower shall maintain separate records of each stock borrowing and any stock return made in respect of that stock borrowing and such records shall include, in respect of each stock borrowing, the following:

(a) evidence that the stock borrower was obliged to supply stock to complete a trade;

(b) the name and address of the lender;

(c) the type, nominal value, description and amount of stock borrowed from the lender;

(d) the date on which the stock was transferred from the lender to the stock borrower;

(e) the date on which equivalent stock should be returned to the lender;

(f) the type, nominal value, description and amount of the stock returned to the lender and the date of the stock return;

(g) where the provisions of paragraph (a), (b), (c), (d), (e), (f), (g) or (h) of the definition of “equivalent stock” in subsection (1) apply, full details thereof.

PART V Residential Property Tax

151 Application (Part V).

151.—This Part shall apply and have effect where tax is chargeable on a valuation date (as defined by section 95 (1) of the Finance Act, 1983) in relation to any year commencing with the year 1995.

152 Amendment of section 96 (charge of residential property tax) of Finance Act, 1983.

152.—Section 96 of the Finance Act, 1983 (as amended by section 116 of the Finance Act, 1994) is hereby amended by the substitution of “the rate of tax shall be one and one-half per cent. of that net market value” for “the tax chargeable on that net market value shall be computed in accordance with the Seventh Schedule to the Finance Act, 1994”.

153 Amendment of section 100 (market value exemption limit) of Finance Act, 1983.

153.—Section 100 of the Finance Act, 1983, is hereby amended in subsection (1)—

(a) by the substitution in the definition of “general exemption limit” of “£94,000” for “£75,000” (inserted by the Finance Act, 1994) and of “1995” for “1994” (as so inserted), and

(b) by the substitution in the definition of “the new house price index number” of “1991” for “1980” (inserted by the Finance Act, 1992).

154 Amendment of section 101 (income exemption limit) of Finance Act, 1983.

154.—(1) Section 101 of the Finance Act, 1983, is hereby amended—

(a) by the insertion after “qualifying child” in paragraph (b) of the proviso to subsection (1) (inserted by the Finance Act, 1994) of “within the meaning of section 102 (4)”, and

(b) by the substitution in subsection (2) of “£29,500” for “£25,000” (inserted by the Finance Act, 1994) and of “1995” for “1994” (as so inserted).

(2) Notwithstanding the provisions of section 151, subsection (1) (a) shall be deemed to have come into operation as respects any valuation date (as defined by section 95 (1) of the Finance Act, 1983) in relation to any year commencing with the year 1994.

155 Repeal (Part V).

155.—The Seventh Schedule to the Finance Act, 1994, is hereby repealed.

PART VI Capital Acquisitions Tax

156 Interpretation (Part VI).

156.—In this Part “the Principal Act” means the Capital Acquisitions Tax Act, 1976.

157 Amendment of section 2 (interpretation) of Principal Act.

157.—Subsection (1) of section 2 of the Principal Act is hereby amended by the insertion of the following definition after the definition of “valuation date”:

“‘year of assessment’ has the meaning assigned to it by section 1 of the Income Tax Act, 1967.”.

158 Amendment of section 19 (value of agricultural property) of Principal Act.

158.—(1) Section 19 of the Principal Act is hereby amended—

(a) in the definition of “agricultural value” in subsection (1) (inserted by the Finance Act, 1994)—

(i) by the substitution of “50 per cent.” for “75 per cent.” in paragraph (a),

(ii) by the substitution of “50 per cent.” for “70 per cent.”, “30 per cent.” for “50 per cent.” and “£90,000” for “£150,000” in paragraph (b), and

(iii) by the substitution of “50 per cent.” for “70 per cent.”, “15 per cent.” for “35 per cent.” and “£45,000” for “£105,000” in paragraph (c),

and the said definition, as so amended, is set out in the Table to this section,

(b) in the definition of “farmer” in subsection (1), by the deletion of “and ordinarily resident”,

(c) by the substitution, in subsection (4) (inserted by the Finance Act, 1994), of “30 per cent.” for “50 per cent.”, “£90,000” for “£150,000” in both places where it occurs, “15 per cent.” for “35 per cent.” and “£45,000” for “£105,000” in both places where it occurs, and the said subsection, as so amended, is set out in the Table to this section, and

(d) by the insertion after paragraph (b) of subsection (5) of the following paragraph:

“(c) The agricultural value in relation to a gift or inheritance referred to in subsection (2) shall cease to be applicable to agricultural property, other than crops, trees or underwood, if the donee or successor is not resident in the State for any of the three years of assessment immediately following the year of assessment in which the valuation date falls.”.

(2) Paragraphs (a) and (c) of subsection (1) shall have effect in relation to gifts or inheritances taken on or after the 8th day of February, 1995, paragraph (b) shall have effect in relation to a gift or inheritance where the valuation date in relation to that gift or inheritance is on or after the 6th day of April, 1994, and paragraph (d) shall have effect in relation to gifts and inheritances taken on or after the date of the passing of this Act.

TABLE

“agricultural value” means—

(a) in the case of farm machinery, livestock and bloodstock, 50 per cent. of the market value of such property,

(b) in the case of a gift of agricultural property, other than farm machinery, livestock and bloodstock, 50 per cent. of the market value of the agricultural property comprised in the gift reduced by 30 per cent. of that market value or by a sum of £90,000, whichever is the lesser, and

(c) in the case of an inheritance of agricultural property, other than farm machinery, livestock and bloodstock, 50 per cent. of the market value of the agricultural property comprised in the inheritance reduced by 15 per cent. of that market value or by a sum of £45,000, whichever is the lesser;

(4) In relation to the deduction, in respect of agricultural property, of—

(a) in the case of a gift, 30 per cent. of its market value, or £90,000, whichever is the lesser, and

(b) in the case of an inheritance, 15 per cent. of its market value, or £45,000, whichever is the lesser,

the amount deductible shall not exceed £90,000 in the case of a gift and £45,000 in the case of an inheritance, in respect of the aggregate of—

(i) all taxable gifts taken on or after the 28th day of February, 1969, and

(ii) all taxable inheritances taken on or after the 1st day of April, 1975, which consist in whole or in part of agricultural property, taken by the same person, as donee or successor, from the same disponer.

159 Amendment of section 52 (appeals in other cases) of Principal Act.

159.—Paragraph (a) of subsection (5) of section 52 of the Principal Act is hereby amended by the insertion of the following subparagraph after subparagraph (x):

“(xi) the refusal of an application for an appeal hearing,”.

160 Amendment of section 55 (exemption of certain objects) of Principal Act.

160.—(1) Section 55 of the Principal Act is hereby amended—

(a) by the substitution of the following subsection for subsection (3):

“(3) If an object exempted from tax by virtue of subsection (2) is sold within 6 years after the valuation date, and before the death of the donee or successor, the exemption referred to in subsection (2) shall cease to apply to such object:

Provided that, if the sale of such object is a sale by private treaty to the National Gallery of Ireland, the National Museum of Science and Art or any other similar national institution, any university in the State or any constituent college thereof, a local authority or the Friends of the National Collections of Ireland, the exemption referred to in subsection (2) shall continue to apply.”,

and

(b) by the substitution of the following subsection for subsection (4):

“(4) The exemption referred to in subsection (2) shall cease to apply to an object, if at any time after the valuation date and—

(a) before the sale of the object,

(b) before the death of the donee or successor, and

(c) before such object again forms part of the property comprised in a gift or an inheritance in respect of which gift or inheritance an absolute interest is taken by a person other than the spouse of that donee or successor,

there has been a breach of any condition specified in paragraph (b) or (c) of subsection (1).”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 12th day of April, 1995.

161 Business relief.

161.—(1) The Finance Act, 1994, is hereby amended by the substitution of the following section for section 126:

“126.—Where the whole or part of the taxable value of any taxable gift or taxable inheritance is attributable to the value of any relevant business property, the whole or that part of the taxable value shall, subject to the other provisions of this Chapter, be treated as being reduced by 50 per cent.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 8th day of February, 1995.

162 Amendment of section 134 (exclusion of value of excepted assets) of Finance Act, 1994.

162.—(1) Section 134 of the Finance Act, 1994, is hereby amended—

(a) by the addition of the following proviso to subsection (1):

“Provided that so much of the last-mentioned value as is attributable to agricultural property in the beneficial ownership of a company shall not fall to be left out of account unless it would fall to be left out of account by virtue of paragraph (b) or (c) of this subsection.”,

and

(b) by the substitution of the following proviso for the proviso to subsection (2):

“Provided that—

(a) the use of an asset for the purposes of a business to which section 127 (4) relates, and

(b) where the business concerned is not carried on by a company, the use of an asset for the purposes of farming (within the meaning of section 13 of the Finance Act, 1974),

shall not be treated as use for the purposes of the business concerned.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 12th day of April, 1995.

163 Amendment of section 135 (withdrawal of relief) of Finance Act, 1994.

163.—(1) Section 135 of the Finance Act, 1994, is hereby amended—

(a) by the substitution, in subsection (1), of “commencing on the valuation date.” for “after the valuation date or the period between the date of the gift or inheritance and the date of a subsequent gift or inheritance consisting of the same property or of property representing that property, whichever is the lesser period.”, and

(b) by the substitution of the following proviso for the proviso to subsection (2):

“Provided that—

(i) any land, building, machinery or plant which are comprised in the gift or inheritance and which qualify as relevant business property by virtue of section 127 (1) (e) shall, together with any similar property which has replaced such property, continue to be relevant business property for the purposes of this section for so long as they are used for the purposes of the business concerned, and

(ii) this section shall not have effect where the donee or successor dies before the event which would otherwise cause the reduction to cease to be applicable.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 12th day of April, 1995.

164 Payment of tax on certain assets by instalments.

164.—(1) In this section—

“agricultural property” has the meaning assigned to it by section 19 of the Principal Act (as amended by the Finance Act, 1994);

“relevant business property” has the same meaning as it has in section 127 of the Finance Act, 1994, other than shares in or securities of a company (being shares or securities quoted on a recognised stock exchange) and without regard to sections 128 and 134 (3) of that Act.

(2) Where the whole or part of the tax which is due and payable in respect of a taxable gift or taxable inheritance is attributable to either or both agricultural property and relevant business property—

(a) section 43 of the Principal Act shall apply to that whole or part of the tax notwithstanding subsection (4) of that section, and

(b) notwithstanding subsection (2) of section 41 of the Principal Act the rate at which interest is payable upon that whole or part of the tax shall be 0.75 per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month instead of at the rate specified in that section and that section shall have effect as regards that whole or part of the tax as if the rate so payable were substituted for the rate specified in that section:

Provided that the rate at which interest is payable upon any overdue instalment of that whole or part of the tax, or upon such part of the tax as would represent any such overdue instalment if that whole or part of the tax were being paid by instalments, shall continue to be at the rate specified in section 41 of the Principal Act.

(3) For the purposes of this section the value of a business or of an interest in a business shall be taken to be its net value ascertained in accordance with section 132 of the Finance Act, 1994.

(4) This section shall have effect in relation to gifts and inheritances taken on or after the 8th day of February, 1995, but shall not have effect in relation to an inheritance taken by a relevant trust by virtue of section 110 (1) of the Finance Act, 1993, or to an inheritance taken by a discretionary trust by virtue of section 106 (1) of the Finance Act, 1984, or section 103 (1) of the Finance Act, 1986.

(5) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

165 Exemption of certain inheritances taken by parents.

165.—Notwithstanding the provisions of the Principal Act, an inheritance taken on or after the 12th day of April, 1995, by a person from a disponer shall, where—

(a) that person is a parent of that disponer, and

(b) the date of the inheritance is the date of death of that disponer,

be exempt from tax and shall not be taken into account in computing tax if and only if that disponer took a non-exempt gift or inheritance from either or both of that disponer's parents within the period of 5 years immediately prior to the date of death of that disponer.

166 Heritage property of companies.

166.—(1) In this section—

“relevant heritage property” means any one or more of the following—

(a) objects to which section 55 of the Principal Act applies;

(b) a house or garden referred to in section 39 of the Finance Act, 1978;

“private company” has the meaning assigned to it by section 16 of the Principal Act;

“subsidiary” has the meaning assigned to it by section 155 of the Companies Act, 1963.

(2) Where a gift or inheritance consists in whole or in part—

(a) at the date of the gift or at the date of the inheritance, and

(b) at the valuation date,

of one or more shares in a private company which (after the taking of the gift or inheritance) is, on the date of the gift or on the date of the inheritance, a company controlled by the donee or successor within the meaning of section 16 of the Principal Act, then each such share shall, to the extent that its market value for tax purposes is, at the valuation date, attributable to relevant heritage property, be exempt from tax and the value thereof shall to that extent not be taken into account in computing tax on any gift or inheritance taken by that person unless the exemption ceases to apply under the provisions of subsection (5) or (6):

Provided that that relevant heritage property was in the beneficial ownership of the company on the 12th day of April, 1995, or in the beneficial ownership on that date of another company which was on that date a subsidiary of the first-mentioned company.

(3) The provisions of section 19 (6) of the Principal Act shall apply, for the purposes of subsection (2), as they apply in relation to agricultural property.

(4) Where in relation to a gift or inheritance—

(a) a part of a share in a private company is exempt from tax by virtue of subsection (2), and

(b) such share is relevant business property within the meaning of Chapter I of Part VI of the Finance Act, 1994,

then the relevant heritage property to which the market value of such share is partly attributable shall be left out of account in determining for the purposes of that Chapter what part of the taxable value of that gift or inheritance is attributable to such share, but the amount of the reduction (if any) which would but for subsection (2) fall to be made under that Chapter in respect of such share shall not otherwise be restricted notwithstanding subsection (2).

(5) If a share in a private company which is exempted in whole or in part from tax by virtue of subsection (2) is sold within 6 years after the valuation date, and before the death of the donee or successor, the exemption referred to in subsection (2) shall, subject to subsection (7), cease to apply to such share.

(6) Where the whole or part of the market value of a share in a private company which is comprised in a gift or inheritance is on the valuation date attributable to an item of relevant heritage property and—

(a) that item of relevant heritage property is sold within 6 years after the valuation date, and before the death of the donee or successor, or

(b) at any time after the valuation date and—

(i) before the sale of such share or such item of relevant heritage property,

(ii) before the death of the donee or successor, and

(iii) before such share or such item of relevant heritage property forms part of the property comprised in a subsequent gift or inheritance in respect of which gift or inheritance an absolute interest is taken by a person other than the spouse of that donee or successor,

there has been a breach of any condition specified in subsection (1) (b) or (c) of section 55 of the Principal Act or in section 39 (1) (c) of the Finance Act, 1978,

then the exemption referred to in subsection (2) shall, subject to subsection (7), cease to apply to such share to the extent that that market value is attributable to such item of relevant heritage property.

(7) Notwithstanding subsections (5) and (6), the exemption referred to in subsection (2) shall continue to apply if the sale of the share referred to in subsection (5), or the sale of the item of relevant heritage property referred to in subsection (6), is a sale by private treaty to the National Gallery of Ireland, the National Museum of Science and Art or any other similar national institution, any university in the State or any constituent college thereof, a local authority or the Friends of the National Collections of Ireland.

(8) This section shall have effect in relation to gifts and inheritances taken on or after the 12th day of April, 1995.

PART VII Miscellaneous

Chapter I Provisions Relating to Residence of Individuals

167 Amendment of Chapter IV (Interest Payments by Certain Deposit Takers) of Part I of Finance Act, 1986.

167.—As respects the year 1995-96 and subsequent years of assessment, Chapter IV of Part I of the Finance Act, 1986, is hereby amended by the substitution of “resident” for “ordinarily resident” in paragraph (f) (i) of the definition of “relevant deposit” in subsection (1) of section 31 and in paragraphs (c), (d) and (e) of subsection (1) of section 37.

168 Amendment of section 175 (power to obtain information as to interest paid or credited without deduction of tax) of Income Tax Act, 1967.

168.—As respects the year 1995-96 and subsequent years of assessment, section 175 óf the Income Tax Act, 1967, is hereby amended in subsection (4) and in the proviso thereto by the substitution of “resident” for “ordinarily resident” in each place where it occurs.

169 Amendment of section 152 (application of Part III (Schedule C) and section 52 (Schedule D) of Income Tax Act, 1967) of Finance Act, 1994.

169.—(1) Section 152 of the Finance Act, 1994, is hereby amended by the substitution of the following proviso for the proviso to subsection (1):

“Provided that this section shall not apply in respect of—

(a) the income of an individual derived from one or more of the following, that is to say, a trade or profession, no part of which is carried on in the State or an office or employment all the duties of which are performed outside the State, and

(b) other income of an individual which in any year of assessment does not exceed £3,000.”.

(2) This section shall be deemed to apply and have effect as on and from the 23rd day of May, 1994.

170 Amendment of section 154 (deduction for income earned outside the State) of Finance Act, 1994.

170.—(1) Section 154 of the Finance Act, 1994, is hereby amended in subsection (2) by the substitution of the following for the definition of “the specified amount”:

“‘the specified amount’ means an amount determined by the formula—

D E _____ 365

where—

D is the number of qualifying days in the year of assessment concerned, and

E is all the income, profits or gains from an office, employment or pension whether chargeable under Schedule D or Schedule E (including income from offices or employments, the duties of which are performed in the State) of an individual in that year.”.

(2) This section shall be deemed to apply and have effect as on and from the 23rd day of May, 1994.

Chapter II General

171 Capital Services Redemption Account.

171.—(1) In this section—

“the 1994 amending section” means section 159 of the Finance Act, 1994;

“capital services” has the same meaning as it has in the principal section;

“the forty-fifth additional annuity” means the sum charged on the Central Fund under subsection (4);

“the principal section” means section 22 of the Finance Act, 1950.

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1995, subsection (4) of the 1994 amending section shall have effect with the substitution of “£67,702,028” for “£68,241,818”.

(3) Subsection (6) of the 1994 amending section shall have effect with the substitution of “£51,254,069” for “£52,452,200”.

(4) A sum of £74,427,949 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of December, 1995.

(5) The forty-fifth additional annuity shall be paid into the Capital Services Redemption Account in such manner and at such times in the relevant financial year as the Minister for Finance may determine.

(6) Any amount of the forty-fifth additional annuity, not exceeding £57,207,000 in any financial year, may be applied towards defraying the interest on the public debt.

(7) The balance of the forty-fifth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

172 Duties of a relevant person in relation to certain revenue offences.

172.—(1) In this section—

“the Acts” means—

(a) the Customs Acts,

(b) the statutes relating to the duties of excise and to the management of those duties,

(c) the Tax Acts,

(d) the Capital Gains Tax Acts,

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

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

(g) the statutes relating to stamp duty and to the management of that duty,

and any instruments made thereunder and any instruments made under any other enactment and relating to tax;

“appropriate officer” means any officer nominated by the Revenue Commissioners to be an appropriate officer for the purposes of this section;

“company” means any body corporate;

“relevant person”, in relation to a company, means a person who—

(a) (i) is an auditor to the company appointed in accordance with section 160 of the Companies Act, 1963 (as amended by the Companies Act, 1990), or

(ii) in the case of an industrial and provident society or a friendly society, is a public auditor to the society for the purposes of the Industrial and Provident Societies Acts, 1893 to 1978, and the Friendly Societies Acts, 1896 to 1977,

or

(b) with a view to reward assists or advises the company in the preparation or delivery of any information, declaration, return, records, accounts or other document which he or she knows will be, or is likely to be, used for any purpose of tax:

Provided that a person who would, but for this proviso, be treated as a relevant person in relation to a company shall not be so treated if the person assists or advises the company solely in the person's capacity as an employee of the said company, and a person shall be treated as assisting or advising the company in that capacity where the person's income from assisting or advising the company consists solely of emoluments to which Chapter IV of Part V of the Income Tax Act, 1967, applies;

“relevant offence” means an offence committed by a company which consists of the company—

(a) knowingly or wilfully delivering any incorrect return, statement or accounts or knowingly or wilfully furnishing or causing to be furnished any incorrect information in connection with any tax,

(b) knowingly or wilfully claiming or obtaining relief or exemption from, or repayment of, any tax, being a relief, exemption or repayment to which there is no entitlement,

(c) knowingly or wilfully issuing or producing any incorrect invoice, receipt, instrument or other document in connection with any tax,

(d) knowingly or wilfully failing to comply with any provision of the Acts requiring the furnishing of a return of income, profits or gains, or of sources of income, profits or gains, for the purposes of any tax:

Provided that an offence under this paragraph committed by a company shall not be a relevant offence if the company has made a return of income, profits or gains to the Revenue Commissioners in respect of an accounting period falling wholly or partly into the period of 3 years immediately preceding the accounting period in respect of which the offence was committed;

“tax” means tax, duty, levy or charge under the care and management of the Revenue Commissioners.

(2) If, having regard solely to information obtained in the course of examining the accounts of a company, or in the course of assisting or advising a company in the preparation or delivery of any information, declaration, return, records, accounts or other document for the purposes of tax, as the case may be, a person who is a relevant person in relation to the company becomes aware that the company has committed, or is in the course of committing, one or more relevant offences, the person shall, if the offence or offences are material—

(a) communicate particulars of the offence or offences in writing to the company without undue delay and request the company to—

(i) take such action as is necessary for the purposes of rectifying the matter, or

(ii) notify an appropriate officer of the offence or offences,

not later than 6 months after the time of communication, and

(b) (i) unless it is established to the person's satisfaction that the necessary action has been taken or notification made, as the case may be, under paragraph (a), cease to act as the auditor to the company or to assist or advise the company in such preparation or delivery as is specified in paragraph (b) of the definition of relevant person, and

(ii) shall not so act, assist or advise before a time which is—

(I) 3 years after the time at which the particulars were communicated under paragraph (a), or

(II) the time at which it is established to the person's satisfaction that the necessary action has been taken or notification made, as the case may be, under paragraph (a),

whichever is the earlier:

Provided that nothing in this paragraph shall prevent a person from assisting or advising a company in preparing for, or conducting, legal proceedings, either civil or criminal, which are extant or pending at a time which is 6 months after the time of communication under paragraph (a).

(3) Where a person, being in relation to a company a relevant person within the meaning of paragraph (a) of the definition of relevant person, ceases under the provisions of this section to act as auditor to the company, then the person shall deliver—

(a) a notice in writing to the company stating that he or she is so resigning, and

(b) a copy of the notice to an appropriate officer not later than 14 days after he or she has delivered the notice to the company.

(4) A person shall be guilty of an offence under this section if the person—

(a) fails to comply with subsection (2) or (3), or

(b) knowingly or wilfully makes a communication under subsection (2) which is incorrect.

(5) Where a relevant person is found guilty of an offence under this section the person shall be liable—

(a) on summary conviction to a fine of £1,000 which may be mitigated to not less than one-fourth part thereof, or

(b) on conviction on indictment, to a fine not exceeding £5,000 or, at the discretion of the court, to imprisonment for a term not exceeding 2 years or to both the fine and the imprisonment.

(6) Section 13 of the Criminal Procedure Act, 1967, shall apply in relation to this section as if, in lieu of the penalties specified in subsection (3) of the said section 13, there were specified therein the penalties provided for by subsection (5) (a) of this section, and the reference in subsection (2) (a) of the said section 13 to the penalties provided for in the said subsection (3) shall be construed and have effect accordingly.

(7) Notwithstanding the provisions of any other enactment, proceedings in respect of this section may be instituted within 6 years from the time at which a person is required under subsection (2) to communicate particulars of an offence or offences in writing to a company.

(8) It shall be a good defence in a prosecution for an offence under subsection (4) (a) in relation to a failure to comply with subsection (2) for an accused (being a person who is a relevant person in relation to a company) to show that he or she was, in the ordinary scope of professional engagement, assisting or advising the company in preparing for legal proceedings and would not have become aware that one or more relevant offences had been committed by the company if he or she had not been so assisting or advising.

(9) If a person who is a relevant person takes any action required by subsection (2) or (3), no duty to which the person may be subject shall be regarded as contravened and no liability or action shall lie against the person in any court for so doing.

(10) The Revenue Commissioners may nominate an officer to be an appropriate officer for the purposes of this section and the name of an officer so nominated and the address to which copies of notices under subsection (2) or (3) shall be delivered shall be published in the Iris Oifigiúil.

(11) This section shall have effect as respects a relevant offence committed by a company in respect of tax which is—

(a) assessable by reference to accounting periods, for any accounting period beginning after the 30th day of June, 1995,

(b) assessable by reference to years of assessment, for the year of assessment 1995-96 and subsequent years,

(c) payable by reference to a taxable period, for a taxable period beginning after the 30th day of June, 1995,

(d) chargeable on gifts or inheritances taken on or after the 30th day of June, 1995,

(e) chargeable on instruments executed on or after the 30th day of June, 1995, or

(f) payable in any other case, on or after the 30th day of June, 1995.

173 Amendment of provisions relating to appeals.

173.—(1) Part XXVI of the Income Tax Act, 1967, is hereby amended—

(a) in section 416—

(i) by the substitution of the following subsection for subsection (1):

“(1) (a) A person aggrieved by any assessment to income tax made upon him by the inspector or such other officer as the Revenue Commissioners shall appoint in that behalf (hereafter in this section referred to as ‘other officer’) shall be entitled to appeal to the Appeal Commissioners on giving, within thirty days after the date of the notice of assessment, notice in writing to the inspector or other officer.

(b) If on an application under paragraph (a) the inspector or other officer is of opinion that the person who has given the notice of appeal is not entitled to make such an appeal, the inspector or other officer shall refuse the application and notify the person in writing accordingly specifying the grounds for such refusal.

(c) A person who has had an application under paragraph (a) refused by the inspector or other officer shall be entitled to appeal against such refusal by notice in writing to the Appeal Commissioners within 15 days of the date of issue, by the inspector or other officer, of the notice of refusal.

(d) On receipt of an application under paragraph (c) the Appeal Commissioners shall request the inspector or other officer to furnish them with a copy of the notice issued to the person under paragraph (b) and, on receipt thereof, they shall as soon as possible—

(I) refuse the application for an appeal by giving notice in writing to the applicant specifying the grounds for their refusal, or

(II) allow the application for an appeal and give notice in writing accordingly to both the applicant and the inspector or other officer, or

(III) notify in writing both the applicant and the inspector or other officer that they have decided to arrange a hearing, at such time and place specified in the notice, to enable them determine whether or not to allow the application for an appeal.”,

(ii) in subsection (2)—

(I) by the substitution of the following subparagraph for subparagraph (ii) of paragraph (b):

“(ii) in a case where it appears to the inspector or other officer that an appeal may be settled by agreement under subsection (3), he may refrain from giving notice under this paragraph or may, by notice in writing, and with the agreement of the appellant, withdraw a notice already given.”,

and

(II) by the insertion of the following paragraph after paragraph (b):

“(c) Where, on application in writing in that behalf to the Appeal Commissioners, a person, who has given notice of appeal to the inspector or other officer in accordance with the provisions of subsection (1) (a), satisfies the Appeal Commissioners that the information submitted to the inspector or other officer is such that the appeal is likely to be determined on the first occasion on which it comes before them for hearing, the Appeal Commissioners may direct the inspector or other officer to give the notice in writing first mentioned in paragraph (b) and the inspector or other officer shall comply forthwith with such direction and, accordingly, subparagraph (ii) of the said paragraph shall not apply to that notice of appeal.”,

and

(iii) in subsection (6), by the substitution of the following clause for clause (B) of subparagraph (ii) of paragraph (c):

“(B) such a return has been made but—

(I) all the statements of profits and gains, schedules and other evidence relating to such return have not been furnished by or on behalf of the appellant,

(II) information requested from the appellant by the Appeal Commissioners in the hearing of the appeal has not been supplied by the appellant,

(III) the terms of a precept issued by the Appeal Commissioners under section 422 have not been complied with by the appellant, or

(IV) any questions as to an assessment or assessments put by the Appeal Commissioners under section 425 have not been answered to their satisfaction,”,

(b) in sections 421 (1), 422 (5), 423 (1), 424 (a) and 427 (e), by the substitution of “inspector or such other officer as the Revenue Commissioners shall authorise in that behalf for” “inspector” in each place where it occurs,

(c) in section 428—

(i) by the substitution in subsection (1) of “inspector or such other officer as the Revenue Commissioners shall authorise in that behalf (hereafter in this section referred to as Other officer')” for “inspector”, and

(ii) by the insertion in subsection (2) of “or other officer” after “inspector”,

(d) in section 429—

(i) by the substitution in subsection (1) of “inspector or such other officer as the Revenue Commissioners shall authorise in that behalf (hereafter in this section referred to as ‘other officer’)” for “inspector”,

(ii) by the insertion of the following subsection after subsection (2):

“(2A) The provisions of section 421 (2) shall, with any necessary modifications, apply in relation to a rehearing of an appeal by a judge of the Circuit Court as they do in relation to the hearing of an appeal by the Appeal Commissioners.”,

and

(iii) by the insertion in subsection (6) of “or other officer” after “inspector”,

and

(e) in section 432, by the substitution of the following subsection for subsection (2):

“(2) The Appeal Commissioners shall hear and determine an appeal to them under subsection (1) as if it were an appeal against an assessment to income tax and all of the provisions of section 416, with respect to such appeals, together with the provisions of this Act relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law, shall apply accordingly with any necessary modifications.”.

(2) Section 2 of the Finance Act, 1969, is hereby amended by the substitution of the following subsection for subsection (5B) (inserted by the Finance Act, 1989):

“(5B) The Appeal Commissioners shall hear and determine an appeal made to them under subsection (5A) as if it were an appeal against an assessment to income tax and, subject to subsection (5C), all of the provisions of the Income Tax Act, 1967, relating to such appeals and to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.”.

(3) The provisions of subsection (1) shall, with any necessary modifications, apply to an appeal in relation to capital gains tax as if the appeal were against an assessment to income tax.

(4) (a) Paragraph (a) of subsection (1) shall apply and have effect as respects appeals against assessments made after the passing of this Act.

(b) Paragraphs (b), (c) and (d) of subsection (1) and subsection (2) shall apply and have effect as respects every hearing of an appeal by the Appeal Commissioners or the rehearing of an appeal by a judge of the Circuit Court, as the case may be, after the passing of this Act.

174 Amendment of section 115 (liability to tax, etc., of holder of fixed charge on book debts of company) of Finance Act, 1986.

174.—Section 115 of the Finance Act, 1986, is hereby amended by the substitution of the following subsections for subsection (1):

“(1) Subject to the other provisions of this section, where a person holds a fixed charge (being a fixed charge which is created on or after the passing of this Act) on the book debts of a company (within the meaning of the Companies Act, 1963), such person shall, if the company fails to pay any relevant amount for which it is liable, become liable to pay such relevant amount on due demand, and on neglect or refusal of payment may be proceeded against in like manner as any other defaulter:

Provided that—

(a) this section shall not apply—

(i) unless the holder of the fixed charge has been notified in writing by the Revenue Commissioners that a company has failed to pay a relevant amount for which it is liable and that, by reason of this section, the holder of the fixed charge—

(I) may become liable for payment of any relevant amount which the company subsequently fails to pay, and

(II) where subparagraph (iii) does not apply, has become liable for the payment of the relevant amount that the company has failed to pay,

(ii) to any amounts received by the holder of the fixed charge from the company before the date on which the holder is notified in writing by the Revenue Commissioners in accordance with subparagraph (i), and

(iii) where, within 21 days of the passing of the Finance Act, 1995, or of the creation of the fixed charge, whichever is the later, the holder of the fixed charge furnishes to the Revenue Commissioners a copy of the prescribed particulars of the charge delivered or to be delivered to the registrar of companies in accordance with the provisions of section 99 of the Companies Act, 1963, to any relevant amount which the company was liable to pay before the date on which the holder is notified in writing by the Revenue Commissioners in accordance with subparagraph (i),

and

(b) the amount or aggregate amount which the person shall be liable to pay in relation to a company in accordance with this section shall not exceed the amount or aggregate amount which that person has, while the fixed charge on book debts in relation to the said company is in existence, received, directly or indirectly, from that company in payment or in part payment of any debts due by the company to that person.

(1 A) The Revenue Commissioners may, at any time and by notice in writing given to the holder of the fixed charge, withdraw, with effect from a date specified in the notice, a notification issued by them in accordance with the provisions of subsection (1):

Provided that such withdrawal shall not—

(i) affect in any way any liability of the holder of the fixed charge under this section which arose prior to such withdrawal, or

(ii) preclude the issue under subsection (1) of a subsequent notice to the holder of the fixed charge.

(1B) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this section to be performed or discharged by the Revenue Commissioners.”.

175 Power to obtain information.

175.—(1) For the purposes of the assessment, charge, collection and recovery of any tax or duty placed under their care and management, the Revenue Commissioners may, by notice in writing, request any Minister of the Government to provide them with such information in the possession of the Minister in relation to payments for any purposes made by the Minister, whether on his own behalf or on behalf of any other person, to such persons or classes of persons as the Revenue Commissioners may specify in the notice and a Minister so requested shall provide such information as may be specified.

(2) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this section to be performed or discharged by the Revenue Commissioners.

176 Relief for donations of heritage items.

176.—(1) (a) In this section—

“the Acts” means—

(i) the Tax Acts (other than Chapter IV of Part V of the Income Tax Act, 1967, section 17 of the Finance Act, 1970, and Chapter VII of Part I of the Finance Act, 1983),

(ii) the Capital Gains Tax Acts, and

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

and any instrument made thereunder;

“approved body” means—

(i) the National Archives,

(ii) the National Gallery of Ireland,

(iii) the National Library of Ireland,

(iv) the National Museum of Ireland,

(v) the Irish Museum of Modern Art, or

(vi) in relation to the offer of a gift of a particular item or collection of items, any other such body (being a body owned, or funded wholly or mainly, by the State or by any public or local authority) as may be approved, with the consent of the Minister for Finance, by the Minister for Arts, Culture and the Gaeltacht for the purposes of this section;

“arrears of tax” means tax due and payable in accordance with any provision of the Acts (including any interest and penalties payable under any provision of the Acts in relation to such tax)—

(i) in the case of income tax, corporation tax or capital gains tax, in respect of the relevant period, or

(ii) in the case of gift tax or inheritance tax, prior to the commencement of the calendar year in which the relevant gift is made,

which has not been paid at the time a relevant gift is made;

“current liability” means—

(i) in the case of income tax or capital gains tax, any liability to such tax arising in the year of assessment in which the relevant gift is made, or

(ii) in the case of corporation tax, any liability to such tax arising in the accounting period in which the relevant gift is made, or

(iii) in the case of gift tax or inheritance tax, any liability to such tax which becomes due and payable in the calendar year in which the relevant gift is made;

“designated officer” means—

(i) the member of the selection committee who represents the appropriate approved body on that committee where the approved body is so represented, or

(ii) in any other case, a person nominated in that behalf by the Minister for Arts, Culture and the Gaeltacht;

“heritage item” has the meaning assigned to it by subsection (2) (a);

“market value” has the meaning assigned to it by subsection (3);

“relevant gift” means a gift of a heritage item to an approved body which is made on or after the date of the passing of this Act and in respect of which no consideration whatsoever (other than relief under this section) is received by the person making the gift, either directly or indirectly, from the approved body or otherwise;

“relevant period” means—

(i) in the case of income tax and capital gains tax, any year of assessment preceding the year in which the relevant gift is made, and

(ii) in the case of corporation tax, any acounting period preceding the accounting period in which the relevant gift is made;

“selection committee” means a committee consisting of the Chairperson of the Heritage Council, the Director of the Arts Council, the Director of the National Archives, the Director of the National Gallery of Ireland, the Director of the National Library of Ireland, the Director of the National Museum of Ireland and the Director of the Irish Museum of Modern Art and includes any person duly acting in the capacity of any of the foregoing as a result of the member concerned being unable to fulfil his or her duties for any of the reasons set out in paragraph (b) (ii);

“tax” means income tax, corporation tax, capital gains tax, gift tax or inheritance tax, as the case may be, payable in accordance with any provision of the Acts;

“valuation date” means the date on which an application is made, to the selection committee, for a determination under subsection (2) (a).

(b) (i) The selection committee may act notwithstanding one or more vacancies among its members and may regulate its own procedure.

(ii) If and so long as a member of the selection committee is unable through illness, absence or other cause to fulfil his or her duties, a person nominated in that behalf by the member shall act as the member of the committee in the place of the member.

(2) (a) In this section “heritage item” means any kind of cultural item including—

(i) any archaeological item, archive, book, estate record, manuscript and painting, and

(ii) any collection of cultural items and any collection thereof in their setting, which, on application to the selection committee in writing in that behalf by a person who owns the item or collection of items (as the case may be), is determined by the selection committee, after consideration of any evidence in relation to the matter which the person submits to the committee and after such consultation (if any) as may seem to the committee to be necessary with such person or body of persons as in the opinion of the committee may be of assistance to them, to be an item or collection of items—

(I) which is an outstanding example of the type of item involved, pre-eminent in its class, whose export from the State would constitute a diminution of the accumulated cultural heritage of Ireland, and

(II) suitable for acquisition by an approved body.

(b) On receipt of an application for a determination under paragraph (a) the selection committee shall request the Revenue Commissioners in writing to value the item or collection of items, as the case may be, in accordance with the provisions of subsection (3).

(c) The selection committee shall not make a determination under paragraph (a) where the market value of the item or collection of items (as the case may be), as determined by the Revenue Commissioners in accordance with subsection (3), at the valuation date—

(i) is less than £75,000, or

(ii) exceeds an amount (which shall not be less than £75,000) determined by the formula—

£500,000 M

where M is an amount (which may be nil) equal to the market value at the valuation date of the heritage item (if any) or the aggregate of the market values at the respective valuation dates of all the heritage items (if any), as the case may be, in respect of which a determination or determinations, as the case may be, under this subsection has been made by the selection committee in any one calendar year and not revoked in that year.

(d) (i) An item or collection of items shall cease to be a heritage item for the purposes of this section if the item or collection of items—

(I) is sold or otherwise disposed of to a person other than an approved body, or

(II) the owner thereof notifies the selection committee in writing that it is not intended to make a gift thereof to an approved body, or

(III) the gift of the item or collection of items is not made to an approved body within the calendar year following the year in which the determination is made under paragraph (a).

(ii) Where the selection committee becomes aware, at any time within the calendar year in which a determination under paragraph (a) is made in respect of an item or collection of items, that clause (I) or (II) of subparagraph (i) applies to the item or collection of items the selection committee may revoke its determination with effect from that time.

(3) (a) For the purposes of this section, the market value of any item or collection of items (hereafter in this subsection referred to as “the property”) shall be estimated to be the price which, in the opinion of the Revenue Commissioners, the property would fetch if sold in the open market on the valuation date in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the property.

(b) The market value of the property shall be ascertained by the Revenue Commissioners in such manner and by such means as they think fit, and they may authorise a person to inspect the property and report to them the value thereof for the purposes of this section, and the person having custody or possession of the property shall permit the person so authorised to inspect the property at such reasonable times as the Revenue Commissioners consider necessary.

(c) Where the Revenue Commissioners require a valuation to be made by a person authorised by them, the cost of such valuation shall be defrayed by the Revenue Commissioners.

(4) Where a relevant gift is made to an approved body—

(a) the designated officer of that body shall give a certificate to the person who made the relevant gift, in such form as the Revenue Commissioners may prescribe, certifying the receipt of that gift and the transfer of the ownership of the heritage item the subject of that gift to the approved body, and

(b) the designated officer shall transmit a duplicate of the certificate to the Revenue Commissioners.

(5) Subject to the provisions of this section, where a person has made a relevant gift the person shall, on submission to the Revenue Commissioners of the certificate given to the person in accordance with subsection (4), be treated as having made on the date of such submission a payment on account of tax of an amount equal to the market value of the relevant gift on the valuation date.

(6) A payment on account of tax which is treated as having been made in accordance with the provisions of subsection (5) shall be set, so far as possible, against any liability to tax of the person who is treated as having made such a payment in the following order—

(a) firstly, against any arrears of tax due for payment by that person and against an arrear of tax for an earlier period in priority to a later period and, for this purpose, the date on which an arrear of tax became due for payment shall determine whether it is for an earlier or later period, and

(b) then, and only then, against any current liability of the person which the person nominates for that purpose,