FINANCE ACT, 1997

• (ii) which does not exceed 10 per cent. of the market value of the house on the date of completion of the refurbishment to which the relevant expenditure relates; and, in the case of a house which is a part of a building and which is not saleable apart from the building of which it is a part, the market value of the house on that date shall for the purposes of this subparagraph be taken to be an amount which bears to the market value of the building on that date the same proportion as the total floor area of the house bears to the total floor area of the building;

“qualifying premises” means, subject to subsections (3), (4)(b) and (5) of section 155, a house—

• (a) which is used solely as a dwelling,

• (b) the total floor area of which—

• (i) is not less than 30 square metres and not more than—

• (I) 125 square metres, or

• (II) as respects expenditure incurred before the 26th day of January, 1994, 90 square metres,

in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or

• (ii) in any other case, is not less than 35 square metres and not more than 125 square metres,

• (c) in respect of which there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of refurbishment in relation to the house is not less than the relevant expenditure actually incurred on such refurbishment, and

• (d) which on the date of completion of the refurbishment to which the relevant expenditure relates is let (or, if not let on that date, is, without having been used after that date, first let) in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;

“relevant expenditure” means expenditure incurred on the refurbishment of a specified building, other than expenditure attributable to any part (in this section referred to as a “non-residential unit”) of the building which on completion of the refurbishment is not a house, and for the purposes of this definition where expenditure is attributable to the specified building in general (and not directly to any particular house or non-residential unit comprised in the building on completion of the refurbishment), such an amount of that expenditure shall be deemed to be attributable to a non-residential unit as bears to the whole of that expenditure the same proportion as the total floor area of the non-residential unit bears to the total floor area of the building;

“relevant period”, in relation to a qualifying premises, means the period of 10 years beginning on the date of the completion of the refurbishment to which the relevant expenditure relates or, if the premises was not let under a qualifying lease on that date, the period of 10 years beginning on the date of the first such letting after the date of such completion;

“specified building” means a building in the Temple Bar Area—

• (a) in which prior to the refurbishment to which the relevant expenditure relates there are 2 or more houses, and

• (b) which on completion of that refurbishment contains (whether in addition to any non-residential unit or not) 2 or more houses.

• (2) Subject to subsection (3), where a person, having made a claim in that behalf, proves to have incurred relevant expenditure in relation to a house which is a qualifying premises—

• (a) such person shall be entitled, in computing for the purposes of section 81 (4) of the Income Tax Act, 1967, the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of the expenditure as is to be treated under section 155(7) or under this section as having been incurred by such person in the qualifying period, and

• (b) Chapter VI of Part IV of the Income Tax Act, 1967, shall apply as if that deduction were a deduction authorised by section 81(5) of that Act.

• (3)
• (a) This subsection shall apply to any premium or other sum which—

• (i) is payable, directly or indirectly, under a qualifying lease or otherwise under the terms subject to which the lease is granted, to or for the benefit of the lessor or to or for the benefit of any person connected with the lessor, and

• (ii) is payable on or subsequent to the date of the completion of the refurbishment to which the relevant expenditure relates or, if payable before that date, is so payable by reason of, or otherwise in connection with, the carrying out of the refurbishment.

• (b) Where any premium or other sum to which this subsection applies, or any part of such premium or such other sum, is not or is not treated as rent for the purposes of section 81 of the Income Tax Act, 1967, the relevant expenditure to be treated as having been incurred in the qualifying period in relation to the qualifying premises to which the qualifying lease relates shall be deemed for the purposes of subsection (2) to be reduced by the lesser of—

• (i) the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and

• (ii) the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the relevant expenditure actually incurred in relation to the qualifying premises which is to be treated under section 155(7) as having been incurred in the qualifying period bears to the whole of the relevant expenditure incurred in relation to the qualifying premises.

• (4) Where a qualifying premises forms a part of a building or is one of a number of buildings in a single development, or forms a part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary of the relevant expenditure incurred on that building or those buildings for the purposes of determining the relevant expenditure incurred in relation to the qualifying premises.

• (5) Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs—

• (a) the house ceases to be a qualifying premises, or

• (b) the ownership of the lessor's interest in the house passes to any other person but the house does not cease to be a qualifying premises,

then, the person who before the occurrence of the event received or was entitled to receive a deduction under subsection (2) in respect of relevant expenditure incurred in relation to the qualifying premises shall be deemed to have received on the day before the day of the occurrence of the event an amount as rent from the qualifying premises equal to the amount of the deduction.

• (6) Where the event mentioned in subsection (5)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor's interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of relevant expenditure in relation to the house equal to the amount of the relevant expenditure which under section 155(7) or under this section (apart from subsection (3)(b)) the lessor was treated as having incurred in the qualifying period in relation to the house; but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed—

• (a) the net price paid by such person on the purchase, or

• (b) in case only a part of the relevant expenditure incurred in relation to the house is to be treated under section 155(7) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house.

• (7) Where relevant expenditure is incurred in relation to a house and before the house is used subsequent to the incurring of that expenditure it is sold, the person who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period relevant expenditure in relation to the house equal to the lesser of—

• (a) the amount of such expenditure which is to be treated under section 155(7) as having been incurred in the qualifying period, and

• (b) (i) the net price paid by such person on the purchase, or

• (ii) in case only a part of the relevant expenditure incurred in relation to the house is to be treated under section 155(7) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house;

but, where the house is sold more than once before it is used subsequent to the incurring of the relevant expenditure in relation to the house, this subsection shall apply only in relation to the last of those sales.

• (8) This section shall not apply in the case of any refurbishment unless planning permission, in so far as it is required, in respect of the work carried out in the course of the refurbishment has been granted under the Local Government (Planning and Development) Acts, 1963 to 1993.

• (9) Expenditure in respect of which a person is entitled to relief under this section shall not include any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts.

• (10) This section shall apply as if a deduction given to a person under section 23 of the Finance Act, 1981, by virtue of section 21 of the Finance Act, 1985, as applied by section 57 of the Finance Act, 1991 (in so far as that section applied to the Temple Bar Area), were a deduction given to such person under this section in respect of relevant expenditure incurred in the qualifying period in relation to a house which is a qualifying premises.

• (11) Section 155 shall apply for the purposes of supplementing this section.

154 Residential accommodation: allowance to owner-occupiers in respect of expenditure on construction or refurbishment.

154.—(1) In this section—

“qualifying expenditure”, in relation to an individual, means an amount equal to the amount of the expenditure incurred by the individual in the qualifying period on the construction or, as the case may be, refurbishment of a qualifying premises which is a qualifying owner-occupied dwelling in relation to the individual after deducting from that amount of expenditure any sum in respect of or by reference to—

• (a) that expenditure,

• (b) the qualifying premises, or

• (c) the construction or, as the case may be, refurbishment work in respect of which that expenditure was incurred,

which the individual has received or is entitled to receive, directly or indirectly, from the State, any board established by statute or any public or local authority;

“qualifying owner-occupied dwelling”, in relation to an individual, means a qualifying premises which is wholly within the Temple Bar Area and is first used, after the qualifying expenditure has been incurred, by the individual as his or her only or main residence;

“qualifying premises”, in relation to the incurring of qualifying expenditure, means, subject to subsections (4) and (5) of section 155, a house—

• (a) which is used solely as a dwelling,

• (b) in respect of which, if it is not a new house (for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of construction or, as the case may be, refurbishment of the house is not less than the expenditure actually incurred on such construction or refurbishment, as the case may be, and

• (c) the total floor area of which—

• (i) is not less than 30 square metres and not more than—

• (I) 125 square metres, or

• (II) as respects expenditure incurred before the 12th day of April, 1995, on the construction of a house, and expenditure incurred before the 26th day of January, 1994, on the refurbishment of a house, 90 square metres,

in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or

• (ii) in any other case, is not less than 35 square metres and not more than 125 square metres.

• (2) Where an individual, having made a claim in that behalf, proves to have incurred qualifying expenditure in a year of assessment, the individual shall be entitled, for that year of assessment and for any of the 9 subsequent years of assessment in which the qualifying premises in respect of which the expenditure was incurred is the only or main residence of the individual, to have a deduction made from his or her total income of an amount equal to—

• (a) in the case where the qualifying expenditure has been incurred on the construction of the qualifying premises, 5 per cent. of the amount of that expenditure, or

• (b) in the case where the qualifying expenditure has been incurred on the refurbishment of the qualifying premises, 10 per cent. of the amount of that expenditure.

• (3) For the purposes of this section, where qualifying expenditure is incurred in the qualifying period on the refurbishment of a qualifying premises, such expenditure shall be deemed to include the lesser of—

• (a) any expenditure incurred on the purchase of the qualifying premises, other than expenditure incurred on the acquisition of, or of rights in or over, any land, and

• (b) an amount equal to the amount of the value of the qualifying premises as on the 1st day of January, 1991, other than any amount of such value as is attributable to, or to rights in or over, any land,

if the expenditure referred to in paragraph (a) or the amount referred to in paragraph (b), as the case may be, is not greater than the amount of the qualifying expenditure actually incurred in the qualifying period on the refurbishment of the qualifying premises.

• (4) Where the qualifying expenditure in relation to a qualifying premises is incurred by 2 or more persons, each of those persons shall be treated as having incurred the expenditure in the proportions in which they actually bore the expenditure, and the expenditure shall be apportioned accordingly.

• (5) This section shall apply as if a deduction given to an individual for any year of assessment under section 44 of the Finance Act, 1986, as applied by section 55 of the Finance Act, 1991, were a deduction given to the individual under this section in respect of qualifying expenditure.

• (6) Section 155 shall apply for the purposes of supplementing this section.

155 Provisions supplementary to sections 151 to 154.

155.—(1) In sections 151 to 154—

“certificate of reasonable cost” means a certificate granted by the Minister for the Environment for the purposes of section 151, 152, 153 or 154, as the case may be, stating that the amount specified in the certificate in relation to the cost of construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, the house to which the certificate relates appears to that Minister at the time of the granting of the certificate and on the basis of the information available to that Minister at that time to be reasonable, and section 18 of the Housing (Miscellaneous Provisions) Act, 1979, shall, with any necessary modifications, apply to a certificate of reasonable cost as if it were a certificate of reasonable value within the meaning of that section;

“house” includes any building or part of a building used or suitable for use as a dwelling and any outoffice, yard, garden or other land appurtenant to or usually enjoyed with that building or part of a building;

“lease”, “lessee”, “lessor”, “premium” and “rent” have the meanings respectively assigned to them by Chapter VI of Part IV of the Income Tax Act, 1967;

“total floor area” means the total floor area of a house measured in the manner referred to in section 4(2)(b) of the Housing (Miscellaneous Provisions) Act, 1979.

• (2) A lease shall not be a qualifying lease for the purposes of section 151, 152 or 153 if the terms of the lease contain any provision enabling the lessee or any other person, directly or indirectly, at any time to acquire any interest in the house to which the lease relates for a consideration less than that which might be expected to be given at that time for the acquisition of the interest if the negotiations for that acquisition were conducted in the open market at arm's length.

• (3) A house shall not be a qualifying premises for the purposes of section 151, 152 or 153 if—

• (a) it is occupied as a dwelling by any person connected with the person entitled, in relation to the expenditure incurred on the construction of, conversion into, or, as the case may be, refurbishment of, the house, to a deduction under section 151(2), 152(4) or 153(2), as the case may be, and

• (b) the terms of the qualifying lease in relation to the house are not such as might have been expected to be included in the lease if the negotiations for the lease had been at arm's length.

• (4)
• (a) A house shall not be a qualifying premises for the purposes of section 151, or, in so far as it applies to expenditure other than expenditure on refurbishment, section 154, unless it complies with such conditions, if any, as may be determined by the Minister for the Environment from time to time for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979, in relation to standards of construction of houses and the provision of water, sewerage and other services in houses.

• (b) A house shall not be a qualifying premises for the purposes of section 152, 153 or, in so far as it applies to expenditure on refurbishment, section 154, unless it complies with such conditions, if any, as may be determined by the Minister for the Environment from time to time for the purposes of section 5 of the Housing (Miscellaneous Provisions) Act, 1979, in relation to standards for improvements of houses and the provision of water, sewerage and other services in houses.

• (5) A house shall not be a qualifying premises for the purposes of section 151, 152, 153 or 154 unless persons authorised in writing by the Minister for the Environment for the purposes of those sections are permitted to inspect the house at all reasonable times on production, if so requested by a person affected, of their authorisations.

• (6) For the purposes of sections 151 to 154, references in those sections to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, any premises shall be construed as including references to the development of the land on which the premises is situated or which is used in the provision of gardens, grounds, access or amenities in relation to the premises and, without prejudice to the generality of the foregoing, as including in particular—

• (a) demolition or dismantling of any building on the land,

• (b) site clearance, earth moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works,

• (c) walls, power supply, drainage, sanitation and water supply, and

• (d) the construction of any outhouses or other buildings or structures for use by the occupants of the premises or for use in the provision of amenities for the occupants.

• (7)
• (a) For the purposes of determining, in relation to any claim under section 151(2), 152(4), 153(2) or 154(2), as the case may be, whether and to what extent expenditure incurred on the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, a qualifying premises is incurred or not incurred during the qualifying period, only such an amount of that expenditure as is properly attributable to work on the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, the premises which was actually carried out during the qualifying period shall be treated as having been incurred during that period.

• (b) Where by virtue of subsection (6) expenditure on the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, a qualifying premises includes expenditure on the development of any land, paragraph (a) shall apply with any necessary modifications as if the references in that paragraph to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, the qualifying premises were references to the development of such land.

• (c) Nothing in this subsection shall affect the operation of section 154(3)

• (8)
• (a) For the purposes of sections 151 and 152 other than the purposes mentioned in subsection (7)(a), expenditure incurred on the construction of, or, as the case may be, conversion into, a qualifying premises shall be deemed to have been incurred on the date of the first letting of the premises under a qualifying lease.

• (b) For the purposes of section 153 other than the purposes mentioned in subsection (7)(a), relevant expenditure incurred in relation to the refurbishment of a qualifying premises shall be deemed to have been incurred on the date of the commencement of the relevant period in relation to the premises, determined as respects the refurbishment to which the relevant expenditure relates.

• (c) For the purposes of section 154 other than the purposes mentioned in subsection (7)(a), expenditure incurred on the construction or refurbishment of a qualifying premises shall be deemed to have been incurred on the earliest date after the expenditure was actually incurred on which the premises is in use as a dwelling.

• (9) For the purposes of sections 152 and 153, expenditure shall not be regarded as incurred by a person in so far as it has been or is to be met, directly or indirectly, by the State, by any board established by statute or by any public or local authority.

• (10) Paragraph 5 of Schedule 1 to the Capital Gains Tax Act, 1975, shall apply as if a deduction under section 151(2), 152(4) or 153(2), as the case may be, were a capital allowance and as if any rent deemed to have been received by a person under section 151(5), 152(7) or 153(5), as the case may be, were a balancing charge.

• (11) An appeal to the Appeal Commissioners shall lie on any question arising under this section or under section 151, 152, 153 or 154 (other than a question on which an appeal lies under section 18 of the Housing (Miscellaneous Provisions) Act, 1979) in like manner as an appeal would lie against an assessment to income tax or corporation tax, and the provisions of the Tax Acts relating to appeals shall apply accordingly.

156 Repeals and consequential amendments.

156.—(1) The following provisions of Chapter VII of Part I of the Finance Act, 1991, are hereby repealed—

• (a) sections 54 and 55,

• (b) subparagraph (iii) of paragraph (a) of subsection (1), and the proviso to subsection (2), of section 56,

• (c) paragraph (a) of subsection (1), and subsection (2), of section 57, and

• (d) paragraph (a) of subsection (1), and subsection (2), of section 58.

• (2) Section 137 of the Income Tax Act, 1967, is hereby amended in Part I of the Table to that section by the addition of “Section 154 of the Finance Act, 1997”.

• (3) Section 33A of the Corporation Tax Act, 1976, is hereby amended in subsection (1) by the substitution of “section 42 of the Finance Act, 1994, or section 150 of the Finance Act, 1997” for “or section 42 of the Finance Act, 1994”.

• (4) Section 56 of the Finance Act, 1991, is hereby amended in paragraph (c) of subsection (1) by the substitution of “subparagraph (i) or (ii)” for “subparagraph (i), (ii) or (iii)”.

PART VIII Miscellaneous

157 Amendment of section 162 (Collector-General) of Income Tax Act, 1967.

157.—As on and from the passing of this Act, section 162 of the Income Tax Act, 1967, is hereby amended, in subsection (3), by the deletion, in both paragraphs (a) and (b) (inserted by the Finance Act, 1987), of the words “and at his direction”.

158 Amendment of section 23 (publication of names of defaulters) of Finance Act, 1983.

158.—As respects the year 1997 and subsequent years, section 23 of the Finance Act, 1983, is hereby amended—

• (a) by the substitution of the following subsection for subsection (2):

• “(2) The Revenue Commissioners shall, as respects each relevant period (being the period beginning on the 1st day of January, 1997, and ending on the 30th day of June, 1997, and each subsequent period of three months beginning with the period ending on the 30th day of September, 1997), compile a list of names and addresses and the occupations or descriptions of every person—

  • (a) upon whom a fine or other penalty was imposed by a court under any of the Acts during that relevant period,

  • (b) upon whom a fine or other penalty was otherwise imposed by a court during that relevant period in respect of an act or omission by the person in relation to tax, or

  • (c) in whose case the Revenue Commissioners, pursuant to an agreement made with the person in that relevant period, refrained from initiating proceedings for recovery of any fine or penalty of the kind mentioned in paragraphs (a) and (b) and, in lieu of initiating such proceedings, accepted, or undertook to accept, a specified sum of money in settlement of any claim by the Revenue Commissioners in respect of any specified liability of the person under any of the Acts for—

    • (i) payment of any tax,

    • (ii) payment of interest thereon, and

    • (iii) a fine or other monetary penalty in respect thereof.”,

and

• (b) by the substitution of the following subsection for subsection (3):

• “(3) Notwithstanding any obligation as to secrecy imposed on them by the Acts or the Official Secrets Act, 1963—

  • (a) the Revenue Commissioners shall, before the expiration of three months from the end of each relevant period, cause each such list referred to in subsection (2) in relation to that period to be published in Iris Oifigiúil, and

  • (b) the Revenue Commissioners may, at any time, cause any such list referred to in subsection (2) to be publicised in such manner as they shall consider appropriate.”.

159 Evidence of authorisation.

159.—(1) In this section, except where the context otherwise requires—

“the Acts” means—

• (a) (i) the Customs Acts,

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

• (iii) the Tax Acts,

• (iv) the Capital Gains Tax Acts,

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

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

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

and any instruments made thereunder or under any other enactment and relating to tax, and

• (b) the European Communities (Intrastat) Regulations, 1993 (S.I. No. 136 of 1993);

“authorised officer” means an officer of the Revenue Commissioners who is authorised, nominated or appointed under any provision of the Acts, to exercise or perform any functions under any of the specified provisions, and “authorised” and “authorisation” shall be construed accordingly;

“functions” includes powers and duties;

“identity card”, in relation to an authorised officer, means a card which is issued to the officer by the Revenue Commissioners and which contains—

• (a) a statement to the effect that the officer—

• (i) is an officer of the Revenue Commissioners, and

• (ii) is an authorised officer for the purposes of the specified provisions,

• (b) a photograph and signature of the officer,

• (c) a hologram showing the logo of the Office of the Revenue Commissioners,

• (d) the facsimile signature of a Revenue Commissioner, and

• (e) particulars of the specified provisions under which the officer is authorised;

“specified provisions”, in relation to an authorised officer, means either or both the provisions of the Acts under which the authorised officer—

• (a) is authorised and which are specified on his or her identity card, and

• (b) exercises or performs functions under the Customs Acts or any statutes relating to the duties of excise and to the management of those duties;

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

• (2) Where, in the exercise or performance of any functions under any of the specified provisions in relation to him or her, an authorised officer is requested to produce or show his or her authorisation for the purposes of that provision, the production by the authorised officer of his or her identity card—

• (a) shall be taken as evidence of authorisation under that provision, and

• (b) shall satisfy any obligation under that provision which requires the authorised officer to produce such authorisation on request.

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

160 Tax clearance for moneylenders, mortgage intermediaries and credit intermediaries.

160.—(1) Section 242(1) of the Finance Act, 1992, is hereby amended in the definition of “licence” (as amended by the Finance Act, 1993)—

• (a) by the substitution of “‘licence’ means a licence or authorisation, as the case may be, of the kind referred to—” for “‘licence’ means a licence of the kind referred to—”, and

• (b) by the insertion of the following paragraph after paragraph (g):

• “(gg) in section 93, 116 or 144 of the Consumer Credit Act, 1995;”.

• (2) The Consumer Credit Act, 1995, is hereby amended—

• (a) in section 93—

• (i) by the substitution, in subsection (10), of the following for paragraph (d):

• “(d) the applicant has failed to provide satisfactory evidence that a current tax clearance certificate in relation to the licence has been issued in accordance with the provisions of section 242 (as amended by the Finance Act, 1997) of the Finance Act, 1992,”,

and

• (ii) by the insertion of the following after subsection (10):

• “(10A)

  • (a) Where in relation to a moneylender's licence—

    • (i) an application in accordance with section 242 of the Finance Act, 1992, for a tax clearance certificate has been made—

      • (I) not less than four months prior to the commencement date of such licence, and

      • (II) a tax clearance certificate has not yet been issued or refused,

      or

    • (ii) a tax clearance certificate has been refused and an appeal against such refusal has been made and accepted in accordance with subsection (6) of the said section 242,

    and in either case, the licence could, but for the provisions relating to a tax clearance certificate, have been issued, then—

    - (I) in a case where a licence has been granted in respect of the previous licensing period, such licence may continue in force beyond its latest expiry date pending—
    
    - (A) the issue or refusal of a tax clearance certificate, or
    
    - (B) in the case of an appeal, the final determination of that appeal,
    
      and
    
        - (II) in a case where a licence has not been granted in respect of the previous licensing period, a licence may be issued temporarily and remain in force pending—
    
    - (A) the issue or refusal of a tax clearance certificate, or
    
    - (B) in the case of an appeal, the final determination of that appeal:
    
      Provided that the amount of the fee that would be payable on the application for the licence is duly deposited with the Director.
    

  • (b) Every licence issued temporarily or continued in force in accordance with paragraph (a) shall, while it remains in force, be deemed to be a licence within the meaning of this section.

  • (c) Where—

    • (i) a determination is made to issue a tax clearance certificate, in respect of an application referred to in subparagraph (i) of paragraph (a), or

    • (ii) the final determination of an appeal referred to in subparagraph (ii) of paragraph (a) is to the effect that the application for a tax clearance certificate in relation to a licence is an acceptable application,

    and where the tax clearance certificate has been issued; the licence continued in force or issued temporarily under this subsection shall expire upon the grant of a licence under this section and the duty deposited shall be set against the appropriate duty payable on the grant of the licence.

  • (d) Where—

    • (i) a determination is made to refuse a tax clearance certificate, in respect of an application referred to in subparagraph (i) of paragraph (a), or

    • (ii) the final determination of an appeal under subparagraph (ii) of paragraph (a) is to the effect that the refusal of an application for a tax clearance certificate in relation to a licence is a valid refusal,

    the licence continued in force or issued temporarily under this subsection shall expire not later than seven days after such refusal or after the determination of such appeal, and the amount of any duty deposited in excess of the proportion of that duty attributable to the period when the licence was temporarily in force shall be repaid,”,

• (b) in section 116—

• (i) by the substitution, in subsection (9), of the following for paragraph (d);

• “(d) the applicant has failed to provide satisfactory evidence that a current tax clearance certificate in relation to the authorisation has been issued in accordance with the provisions of section 242 (as amended by the Finance Act, 1997) of the Finance Act, 1992,”,

and

• (ii) by the insertion of the following after subsection (9):

• “(9A)

  • (a) Where in relation to an authorisation—

    • (i) an application in accordance with section 242 of the Finance Act, 1992, for a tax clearance certificate has been made—

      • (I) not less than four months prior to the commencement date of such authorisation, and

      • (II) a tax clearance certificate has not yet been issued or refused,

      or

    • (ii) a tax clearance certificate has been refused and an appeal against such refusal has been made and accepted in accordance with subsection (6) of the said section 242,

    and in either case, the authorisation could, but for the provisions relating to a tax clearance certificate, have been issued, then—

    - (I) in a case where an authorisation has been granted in respect of the previous authorisation period, such authorisation may continue in force beyond its latest expiry date pending—
    
    - (A) the issue or refusal of a tax clearance certificate, or
    
    - (B) in the case of an appeal, the final determination of that appeal,
    
      and
    
        - (II) in a case where an authorisation has not been granted in respect of the previous authorisation period, an authorisation may be issued temporarily and remain in force pending—
    
    - (A) the issue or refusal of a tax clearance certificate, or
    
    - (B) in the case of an appeal, the final determination of that appeal:
    
      Provided that the amount of the fee that would be payable on the application for the authorisation is duly deposited with the Director.
    

  • (b) Every authorisation issued temporarily or continued in force in accordance with paragraph (a) shall, while it remains in force, be deemed to be an authorisation within the meaning of this section.

  • (c) Where—

    • (i) a determination is made to issue a tax clearance certificate, in respect of an application referred to in subparagraph (i) of paragraph (a), or

    • (ii) the final determination of an appeal referred to in subparagraph (ii) of paragraph (a) is to the effect that the application for a tax clearance certificate in relation to an authorisation is an acceptable application,

    and where the tax clearance certificate has been issued, the authorisation continued in force or issued temporarily under this subsection shall expire upon the grant of an authorisation under this section and the duty deposited shall be set against the appropriate duty payable on the grant of the authorisation.

  • (d) Where—

    • (i) a determination is made to refuse a tax clearance certificate, in respect of an application referred to in subparagraph (i) of paragraph (a), or

    • (ii) the final determination of an appeal under subparagraph (ii) of paragraph (a) is to the effect that the refusal of an application for a tax clearance certificate in relation to an authorisation is a valid refusal,

    the authorisation continued in force or issued temporarily under this subsection shall expire not later than seven days after such refusal or after the determination of such appeal, and the amount of any duty deposited in excess of the proportion of that duty attributable to the period when the authorisation was temporarily in force shall be repaid.”,

and

• (c) in section 144—

• (i) by the substitution, in subsection (9), of the following for paragraph (d):

• “(d) the applicant has failed to provide satisfactory evidence that a current tax clearance certificate issued in relation to the authorisation has been issued in accordance with the provisions of section 242 (as amended by the Finance Act, 1997) of the Finance Act, 1992,”,

• (ii) by the insertion of the following after subsection (9):

• “(9A)

  • (a) Where in relation to an authorisation—

    • (i) an application in accordance with section 242 of the Finance Act, 1992, for a tax clearance certificate has been made—

      • (I) not less than four months prior to the commencement date of such an authorisation, and

      • (II) a tax clearance certificate has not yet been issued or refused,

      or

    • (ii) a tax clearance certificate has been refused and an appeal against such refusal has been made and accepted in accordance with subsection (6) of the said section 242,

    and in either case, the authorisation could, but for the provisions relating to a tax clearance certificate, have been issued, then—

    - (I) in a case where an authorisation has been granted in respect of the previous authorisation period, such authorisation may continue in force beyond its latest expiry date pending—
    
    - (A) the issue or refusal of a tax clearance certificate, or
    
    - (B) in the case of an appeal, the final determination of that appeal,
    
      and
    
        - (II) in a case where an authorisation has not been granted in respect of the previous authorisation period, an authorisation may be issued temporarily and remain in force pending—
    
    - (A) the issue or refusal of a tax clearance certificate, or
    
    - (B) in the case of an appeal, the final determination of that appeal:
    
      Provided that the amount of the fee that would be payable on the application for the authorisation is duly deposited with the Director.
    

  • (b) Every authorisation issued temporarily or continued in force in accordance with paragraph (a) shall, while it remains in force, be deemed to be an authorisation within the meaning of this section.

  • (c) Where—

    • (i) a determination is made to issue a tax clearance certificate, in respect of an application referred to in subparagraph (i) of paragraph (a), or

    • (ii) the final determination of an appeal referred to in subparagraph (ii) of paragraph (a) is to the effect that the application for a tax clearance certificate in relation to an authorisation is an acceptable application,

    and where the tax clearance certificate has been issued, the authorisation continued in force or issued temporarily under this subsection shall expire upon the grant of an authorisation under this section and the duty deposited shall be set against the appropriate duty payable on the grant of the authorisation.

  • (d) Where—

    • (i) a determination is made to refuse a tax clearance certificate, in respect of an application referred to in subparagraph (i) of paragraph (a), or

    • (ii) the final determination of an appeal under subparagraph (ii) of paragraph (a) is to the effect that the refusal of an application for a tax clearance certificate in relation to an authorisation is a valid refusal,

    the authorisation continued in force or issued temporarily under this subsection shall expire not later than seven days after such refusal or after the determination of such appeal, and the amount of any duty deposited in excess of the proportion of that duty attributable to the period when the authorisation was temporarily in force shall be repaid.”.

• (3) This section shall apply and have effect in relation to an application under—

• (a) section 93 of the Consumer Credit Act, 1995, for a moneylender's licence,

• (b) section 116 of that Act, for a mortgage intermediaries authorisation,

• (c) section 144 of that Act, for a credit intermediaries authorisation,

the commencement date of which is on or after the 1st day of January, 1998.

161 Amendment of section 54 (creation and issue of securities by Minister for Finance) of Finance Act, 1970, etc.

161.—(1) Section 54 of the Finance Act, 1970, is hereby amended by the insertion after subsection (9) (inserted by the Finance Act, 1993) of the following subsection:

• “(10)

  • (a) The Minister for Finance may, whenever and so often as the Minister thinks fit, nominate any securities issued under subsection (1) of this section as securities under which each obligation to make a payment whether of principal or of interest, may be separated and each such separated obligation (in this subsection referred to as ‘strips’) shall constitute securities for the purposes of this section.

  • (b) Strips created by virtue of paragraph (a) may be used to constitute securities fungible with the securities from which such strips were derived.

  • (c) The Minister may, whenever and so often as the Minister thinks fit, prescribe such terms and conditions for the purposes of implementing the provisions of paragraphs (a) and (b).”.

162 Advance of moneys to Post Office Savings Bank Fund by the Minister for Finance.

162.—(1) The Minister for Finance may advance moneys from the Central Fund or the growing produce thereof to the Post Office Savings Bank Fund on such terms and conditions as that Minister thinks fit for the purpose of the acquisition, holding or disposal of any rights or interests, direct or indirect, in any securities of the State to which section 138(1)(b)(i) of the Finance Act, 1993, relates.

• (2)
• (a) In respect of any moneys advanced by virtue of subsection (1), such moneys shall, subject to paragraph (b), be repaid to the Minister for Finance at such time or in such circumstances as that Minister may specify, together with any interest thereon at such rate or rates as that Minister may fix.

• (b) The Minister for Finance may, from time to time, alter the time or circumstances under which any moneys advanced by virtue of subsection (1) are to be repaid.

163 Amendment of National Treasury Management Agency Act, 1990.

163.—The National Treasury Management Agency Act, 1990, is hereby amended—

• (a) in section 4 by the insertion of the following subsection after subsection (1):

• “(1A) An additional function of the Agency shall be:

  • (a) to perform, on behalf of the Minister for Agriculture, Food and Forestry whenever requested by that Minister, the borrowing function set out in Regulation 11 of the European Communities (Common Agricultural Policy) (Market Intervention) Regulations, 1973 (S.I. No. 24 of 1973), and

  • (b) to exercise the function of that Minister in relation to the management of the indebtedness arising from such borrowing, on such terms and conditions as may be agreed by the Agency with that Minister.”,

and

• (b) in the First Schedule, by the insertion of the following paragraph after paragraph (g):

• “(gg) section 54(10) (inserted by section 161 of the Finance Act, 1997) of the Finance Act, 1970,”.

164 Capital Services Redemption Account.

164.—(1) In this section—

“the 1996 amending section” means section 138 of the Finance Act, 1996;

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

“the forty-seventh 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, 1997, subsection (4) of the 1996 amending section shall have effect with the substitution of “£88,264,810” for “£83,599,421”.

• (3) Subsection (6) of the 1996 amending section shall have effect with the substitution of “£66,821,199” for “£64,256,400”.

• (4) A sum of £94,679,697 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, 1997.

• (5) The forty-seventh 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-seventh additional annuity, not exceeding £72,772,950 in any financial year, may be applied towards defraying the interest on the public debt.

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

165 Care and management of taxes and duties.

165.—All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

166 Short title, construction and commencement.

166.—(1) This Act may be cited as the Finance Act, 1997.

• (2) Parts I and VII (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

• (3) Part II (so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties.

• (4) Part III shall be construed together with the Value-Added Tax Acts, 1972 to 1996, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1997.

• (5) Part IV shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

• (6) Part V shall be construed together with Part VI of the Finance Act, 1983, and the enactments amending or extending that Part.

• (7) Part VI (so far as relating to capital acquisitions tax) shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act.

• (8) Part VIII (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts and (so far as relating to value-added tax) shall be construed together with the Value-Added Tax Acts, 1972 to 1996, and (so far as relating to Residential Property Tax) shall be construed together with Part VI of the Finance Act, 1983, and the enactments amending or extending that Act and (so far as relating to capital acquisitions tax) shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act.

• (9) Part I and VII shall, save as is otherwise expressly provided therein, be deemed to have come into force and shall take effect as on and from the 6th day of April, 1997.

• (10) In relation to Part III:

• (a) section 95, paragraphs (b) and (c) of section 107, section 108 and section 114 shall be deemed to have come into force and shall take effect as on and from the 7th day of November, 1996;

• (b) paragraph (a) of section 103 and section 105 shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1997;

• (c) paragraphs (a) and (b) of section 96, section 98, section 100, paragraphs (b), (e) and (f) of section 102 and section 104 shall be deemed to have come into force and shall take effect as on and from the 26th day of March, 1997;

• (d) section 110 shall be deemed to have come into force and shall take effect as on and from the 1st day of May, 1997;

• (e) paragraph (c) of section 96, section 99, section 106, paragraph (a) of section 107, section 109, section 111 and section 112 shall take effect as on and from the 1st day of July, 1997;

• (f) sections 101 and 113 shall take effect as on and from such date as the Minister for Finance may by order, appoint;

• (g) the provisions of this Part, other than those specified in paragraphs (a), (b), (c), (d), (e) and (f), shall have effect as on and from the date of passing of this Act.

• (11) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment including this Act.

• (12) In this Act, a reference to a Part, section or Schedule is to a Part or section of, or Schedule to, this Act, unless it is indicated that reference to some other enactment is intended.

• (13) In this Act, a reference to a subsection, paragraph, subparagraph, clause or subclause is to the subsection, paragraph, subparagraph, clause or subclause of the provision (including a Schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.

FIRST SCHEDULE Amendments Consequential on Changes in Personal Reliefs

• (a) in section 138 (inserted by the Finance Act, 1980)—

• (i) in paragraph (a) (inserted by the Finance Act, 1996), by the substitution of “£5,800” for “£5,300”,

• (ii) in paragraph (b)(as amended by the Finance Act, 1988), by the substitution of “£3,400” and “£5,800”, respectively, for “£3,150” and “£5,300” (inserted by the Finance Act, 1996), and

• (iii) in paragraph (c), by the substitution of “£2,900” for “£2,650” (inserted by the Finance Act, 1996),

and

• (b) in subsection (2) of section 138A (inserted by the Finance Act, 1985), by the substitution of “£2,400” and “£2,900”, respectively, for “£2,150” and “£2,650” (inserted by the Finance Act, 1996).

SECOND SCHEDULE Amendments Consequential on Changes in Amounts of Tax Credits in Respect of Distributions

• (2) Section 28 (7) of the Finance Act, 1978, section 28 (3) of the Finance Act, 1983, paragraph 4 of Part I of the Second Schedule to the Finance Act, 1988, paragraph 3 of the First Schedule to the Finance Act, 1990, and paragraph 3 of the Second Schedule to the Finance Act, 1995, shall each not apply to a distribution to which this paragraph applies.

• (3) The reference to certain tax credits in the definition of “B” in subsection (2) of section 64 of the Corporation Tax Act, 1976, shall, in relation to distributions which were received by a company which makes a distribution to which this paragraph applies, be construed—

• (a) as a reference to such tax credits multiplied by .4937 in so far as they are tax credits in respect of distributions which were made before the 6th day of April, 1978, or which were made after the 5th day of April, 1983, and before the 6th day of April, 1988,

• (b) as a reference to such tax credits multiplied by .6203 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1978, and before the 6th day of April, 1983,

• (c) as a reference to such tax credits multiplied by .5649 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1988, and before the 6th day of April, 1989,

• (d) as a reference to such tax credits multiplied by .6835 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1989, and before the 6th day of April, 1991,

• (e) as a reference to such tax credits multiplied by .7975 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1991, and before the 6th day of April, 1995, and

• (f) as a reference to such tax credits multiplied by .8899 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1995, and before the 6th day of April, 1997.

THIRD SCHEDULE Employee Share Ownership Trusts

Interpretation

“ordinary share capital” has the meaning assigned to it by section 155 of the Corporation Tax Act, 1976;

“securities” mean shares (including stock) and debentures.

• (2) For the purposes of this Schedule, the question whether one company is controlled by another shall be construed in accordance with section 102 of the Corporation Tax Act, 1976.

• (3) For the purposes of this Schedule a person shall be regarded as an employee or a director of a company falling within the founding company's group at a particular time if, at the time or within 18 months prior to the time, that person is or was an employee or director of—

• (a) the founding company, being a company resident in the State,

• (b) a company resident in the State and controlled by the founding company, or

• (c) a company, being the founding company or a company controlled by the founding company, which carries on a trade in the State through a branch or agency in which that person is employed.

• (4)
• (a) For the purposes of this Schedule a person shall be treated as having a material interest in a company if the person, either on his or her own or with any one or more of his or her associates, or if any associate of his or her with or without any such other associates is the beneficial owner of, or able directly or through the medium of other companies or by any other indirect means to control, more than 5 per cent. of the ordinary share capital of the company.

• (b) In this subparagraph—

“associate” has the meaning given to it by section 103 of the Corporation Tax Act, 1976;

“control” has the same meaning as in section 102 of that Act.

• (5) For the purposes of this Schedule a trust is established when the deed under which it is established is executed.

Approval of Qualifying Trusts

• (a) there is, with respect to the operation of the trust, any contravention of the conditions set out in paragraphs 6 to 18, or

• (b) any shares of a class of which shares have been acquired by the trustees receive different treatment in any respect from the other shares of that class, in particular, different treatment in respect of—

• (i) the dividend payable,

• (ii) repayment,

• (iii) the restrictions attaching to the shares, or

• (iv) any offer of substituted or additional shares, securities or rights of any description in respect of the shares,

the Revenue Commissioners may, subject to subparagraph (3), withdraw the approval with effect from that time or from such later time as they may specify.

• (2) If, at any time after the Revenue Commissioners have approved of a trust, an alteration is made to the terms of the trust, the approval shall not have effect after the date of the alteration unless they have approved of the alteration.

• (3) It shall not be a ground for withdrawal of approval of a trust that shares which have been newly issued receive, in respect of dividends payable with respect to a period beginning before the date on which the shares were issued, treatment which is less favourable than that accorded to shares issued before that date.

• (4) The Revenue Commissioners may by notice in writing require any person to furnish to them, within such time as they may direct which is not less than 30 days, such information as they think necessary to enable them to either or both—

• (a) determine whether to approve of an employee share ownership trust or withdraw an approval already given, and

• (b) determine the liability to tax of any beneficiary under an approved employee share ownership trust.

• (a) the failure of the Revenue Commissioners to approve of an employee share ownership trust,

• (b) the failure of the Revenue Commissioners to approve of an alteration as mentioned in paragraph 3(2), or

• (c) the withdrawal of approval,

the company may, by notice in writing given to the Revenue Commissioners within 30 days from the date on which it is notified of their decision, make an application to have its claim for relief heard and determined by the Appeal Commissioners.

• (2) Where an application is made under subparagraph (1), the Appeal Commissioners shall hear and determine the claim in like manner as an appeal made to them against an assessment and all the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the re-hearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

General

• (2) The trust shall be established by the founding company which, at the time the trust is established, is not controlled by another company.

Trustees

• (a) appoint the initial trustees;

• (b) contain rules for the retirement and removal of trustees;

• (c) contain rules for the appointment of replacement and additional trustees.

• (2) The trust deed shall provide that at any time while the trust subsists (in this subparagraph referred to as “the relevant time”)—

• (a) the number of trustees shall not be less than three;

• (b) all the trustees shall be resident in the State;

• (c) the trustees shall include one person who is a trust corporation, a solicitor, or a member of such other professional body as the Revenue Commissioners may from time to time allow for the purposes of this paragraph;

• (d) the majority of the trustees must be persons who are not and have never been directors of any company which falls within the founding company's group at the relevant time;

• (e) the majority of the trustees shall be representatives of the employees of the companies which fall within the founding company's group at the relevant time, and who do not have and have never had a material interest in any such company;

• (f) the trustees to whom subparagraph (e) relates, shall, before being appointed as trustees, have been selected by a majority of the employees of the companies falling within the founding company's group at the time of the selection.

• (a) appoint the initial trustees;

• (b) contain rules for the retirement and removal of trustees;

• (c) contain rules for the appointment of replacement and additional trustees.

• (2) The trust deed shall be so framed that at any time while the trust subsists the conditions set out in subparagraph (3) are fulfilled as regards the persons who are then trustees, and in that subparagraph “the relevant time” means that time.

• (3) The conditions referred to in subparagraph (2) are that—

• (a) the number of trustees is not less than three;

• (b) all the trustees are resident in the State;

• (c) the trustees include at least one person who is a professional trustee and at least two persons who are non-professional trustees;

• (d) at least half of the non-professional trustees were, before being appointed as trustees, selected in accordance with subparagraph (6) or (7);

• (e) all the trustees so selected are persons who are employees of companies which fall within the founding company's group at the relevant time, and who do not have and have never had a material interest in any such company.

• (4) For the purposes of this paragraph a trustee is a professional trustee at a particular time if—

• (a) the trustee is then a trust corporation, a solicitor, or a member of such other professional body as the Revenue Commissioners allow for the purposes of this subparagraph,

• (b) the trustee is not then an employee or director of any company then falling within the founding company's group, and

• (c) the trustee meets the requirements of subparagraph (5),