Finance Act 1998

(b) of the amount which would be the relevant cost in relation to that building or those buildings if the building or buildings, as the case may be, were a single qualifying premises,

for the purposes of determining the expenditure incurred on the construction of the qualifying premises and the relevant cost 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 expenditure incurred on the construction of 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)(a) 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 expenditure on the construction of the house equal to the amount which under section 372S(7) or under this section (apart from subsection (3)(b)) the lessor was treated as having incurred in the qualifying period on the construction of 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 the relevant price paid by such person on the purchase.

(b) For the purposes of this subsection and subsection (7), the relevant price paid by a person on the purchase of a house shall be the amount which bears to the net price paid by such person on that purchase the same proportion as the amount of the expenditure actually incurred on the construction of the house which is to be treated under section 372S(7) as having been incurred in the qualifying period bears to the relevant cost in relation to that house.

(7)(a) Subject to paragraph (b), where expenditure is incurred on the construction of a house and before the house is used 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 expenditure on the construction of the house equal to the lesser of—

(i) the amount of such expenditure which is to be treated under section 372S(7) as having been incurred in the qualifying period, and

(ii) the relevant price paid by such person on the purchase,

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

(b) Where expenditure is incurred on the construction of a house by a person carrying on a trade or part of a trade which consists, as to the whole or any part of the trade, of the construction of buildings with a view to their sale and the house, before it is used, is sold in the course of that trade or, as the case may be, that part of that trade—

(i) the person (in this paragraph referred to as ‘the purchaser’) who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period expenditure on the construction of the house equal to the relevant price paid by the purchaser on the purchase (in this paragraph referred to as ‘the first purchase’), and

(ii) in relation to any subsequent sale or sales of the house before the house is used, paragraph (a) shall apply as if the reference to the amount of expenditure which is to be treated as having been incurred in the qualifying period were a reference to the relevant price paid on the first purchase.

(8) Section 372S shall apply for the purposes of supplementing this section.

Rented residential accommodation: deduction for certain expenditure on conversion.

372Q.—(1) In this section—

‘conversion expenditure’ means, subject to subsection (2), expenditure incurred on—

(a) the conversion into a house of a building—

(i) the site of which is wholly within a qualifying rural area, and

(ii) which has not been previously in use as a dwelling,

and

(b) the conversion into 2 or more houses of a building—

(i) the site of which is wholly within a qualifying rural area, and

(ii) which before the conversion had not been in use as a dwelling or had been in use as a single dwelling,

and references in this section and in section 372S to ‘conversion’, ‘conversion into a house’ and ‘expenditure incurred on conversion’ shall be construed accordingly;

‘qualifying lease’, in relation to a house, means, subject to section 372S(2), a lease of the house the duration of which is not less than 12 months and consideration for the grant of which consists—

(a) solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or

(b) of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium which does not exceed 10 per cent of the market value of the house at the time the conversion is completed and, in the case of a house which is a part of a building and is not saleable apart from the building of which it is a part, the market value of the house at the time the conversion is completed shall for the purposes of this paragraph be taken to be an amount which bears to the market value of the building at that time 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 372S, a house—

(a) which is used solely as a dwelling,

(b) the total floor area of which is not less than 38 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 conversion in relation to the house is not less than the expenditure actually incurred on such conversion, and

(d) which without having been used subsequent to the incurring of the expenditure on the conversion is 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 period’, in relation to a qualifying premises, means the period of 10 years beginning on the date of the first letting of the premises under a qualifying lease.

(2) For the purposes of this section, expenditure incurred on the conversion of a building shall be deemed to include expenditure incurred in the course of the conversion on either or both of the following—

(a) the carrying out of any works of construction, reconstruction, repair or renewal, and

(b) the provision or improvement of water, sewerage or heating facilities,

in relation to the building or any outoffice appurtenant to or usually enjoyed with the building, but shall not be deemed to include—

(i) any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts, or

(ii) any expenditure attributable to any part (in this section referred to as a ‘non-residential unit’) of the building which on completion of the conversion is not a house.

(3) For the purposes of subsection (2)(ii), where expenditure is attributable to a building in general and not directly to any particular house or non-residential unit comprised in the building on completion of the conversion, 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.

(4) Subject to subsection (5), where a person, having made a claim in that behalf, proves to have incurred conversion expenditure in relation to a house which is a qualifying premises—

(a) such person shall be entitled, in computing for the purposes of section 97(1) 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 372S(7) or under this section as having been incurred by such person in the qualifying period, and

(b) Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2).

(5)(a) This subsection shall apply to any premium or other sum which 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.

(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 97, the conversion 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 (4) 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 conversion expenditure actually incurred in relation to the qualifying premises which is to be treated under section 372S(7) as having been incurred in the qualifying period bears to the whole of the conversion expenditure incurred in relation to the qualifying premises.

(6) 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 expenditure incurred on the conversion of that building or those buildings for the purposes of determining the conversion expenditure incurred in relation to the qualifying premises.

(7) 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 (4) in respect of conversion 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.

(8) Where the event mentioned in subsection (7)(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 conversion expenditure in relation to the house equal to the amount of the conversion expenditure which under section 372S(7) or under this section (apart from subsection (5)(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 conversion expenditure incurred in relation to the house is to be treated under section 372S(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 conversion expenditure incurred in relation to the house.

(9) Where conversion 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 conversion expenditure in relation to the house equal to the lesser of—

(a) the amount of such expenditure which is to be treated under section 372S(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 conversion expenditure incurred in relation to the house is to be treated under section 372S(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 conversion 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 conversion expenditure in relation to the house, this subsection shall apply only in relation to the last of those sales.

(10) This section shall not apply in the case of a conversion unless planning permission in respect of the conversion has been granted under the Local Government (Planning and Development) Acts, 1963 to 1993.

(11) Section 372S shall apply for the purposes of supplementing this section.

Rented residential accommodation: deduction for certain expenditure on refurbishment.

372R.—(1) In this section—

‘qualifying lease’, in relation to a house, means, subject to section 372S(2), a lease of the house the duration of which is not less than 12 months and the consideration for the grant of which consists—

(a) solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or

(b) of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium—

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

(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 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 372S, a house—

(a) which is used solely as a dwelling,

(b) the total floor area of which is not less than 38 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;

‘refurbishment’, in relation to a building, means either or both of the following—

(a) the carrying out of any works of construction, reconstruction, repair or renewal, and

(b) the provision or improvement of water, sewerage or heating facilities,

where the carrying out of such works or the provision of such facilities is certified by the Minister for the Environment and Local Government, in any certificate of reasonable cost granted by that Minister in relation to any house contained in the building, to have been necessary for the purposes of ensuring the suitability as a dwelling of any house in the building and whether or not the number of houses in the building, or the shape or size of any such house, is altered in the course of such refurbishment;

‘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—

(a) the site of which is wholly within a qualifying rural area,

(b) in which before the refurbishment to which the relevant expenditure relates there is one or more than one house, and

(c) which on completion of that refurbishment contains (whether in addition to any non-residential unit or not) one or more than one house.

(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 97(1) 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 372S(7) or under this section as having been incurred by such person in the qualifying period, and

(b) Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2).

(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 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 97, 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 372S(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 372S(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 372S(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 372S(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 372S(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) Section 372S shall apply for the purposes of supplementing this section.

Provisions supplementary to sections 372P to 372R.

372S.—(1) In sections 372P to 372R—

‘certificate of reasonable cost’ means a certificate granted by the Minister for the Environment and Local Government for the purposes of section 372P, 372Q or 372R, as the case may be, stating that the amount specified in the certificate in relation to the cost of construction of, conversion into, 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;

‘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 372P, 372Q or 372R 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 372P, 372Q or 372R 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 372P(2), 372Q(4) or 372R(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 372P unless it complies with such conditions, if any, as may be determined by the Minister for the Environment and Local Government 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 372Q or 372R unless it complies with such conditions, if any, as may be determined by the Minister for the Environment and Local Government 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 372P, 372Q or 372R unless—

(a) persons authorised in writing by the Minister for the Environment and Local Government 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, and

(b) throughout the period of any qualifying lease related to that premises, the house is used as the sole or main residence of the lessee in relation to that qualifying lease.

(6) For the purposes of sections 372P to 372R, references in those sections to the construction of, conversion into, 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 372P(2), 372Q(4) or 372R(2), as the case may be, whether and to what extent expenditure incurred on the construction of, conversion into, 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, or refurbishment of, the premises 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, 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, or refurbishment of, the qualifying premises were references to the development of such land.

(8) (a) For the purposes of sections 372P and 372Q 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 372R 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.

(9) For the purposes of sections 372P to 372R, 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) Section 555 shall apply as if a deduction under section 372P(2), 372Q(4) or 372R(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 372P(5), 372Q(7) or 372R(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 372P, 372Q or 372R (other than a question on which an appeal lies under section 18 of the Housing (Miscellaneous Provisions) Act, 1979) in the 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.

Non-application of relief in certain cases and provision against double relief.

372T.— (1) Notwithstanding the preceding provisions of this Chapter, sections 372M, 372N and 372O shall not apply in relation to any building or structure in use for the purposes of a trade, or any activity treated as a trade, where the number of individuals employed or engaged in the carrying on of the trade or activity amounts to or exceeds 250.

(2) Where relief is given by virtue of any provision of this Chapter in relation to capital expenditure or other expenditure incurred on, or rent payable in respect of, any building, structure or premises, relief shall not be given in respect of that expenditure or that rent under any other provision of the Tax Acts.”,

and

(b) by the insertion after Schedule 8 of the following:

“Section 372L.

SCHEDULE 8A

PART 1

Description of qualifying rural areas of Cavan

The District Electoral Divisions of Arvagh, Springfield, Killashandra, Milltown, Carrafin, Grilly, Kilconny, Belturbet Urban, Ardue, Carn, Bilberry, Diamond, Doogary, Lissanover, Ballymagauran, Ballyconnell, Bawnboy, Templeport, Benbrack, Pedara Vohers, Tircahan, Swanlinbar, Kinawley, Derrynananta, Dunmakeever, Dowra, Derrylahan, Tuam, Killinagh, Eskey, Teebane, Scrabby, Loughdawan, Bruce Hall, Drumcarban, Corr, Crossdoney and Killykeen.

PART 2

Description of qualifying rural areas of Leitrim

The administrative county of Leitrim.

PART 3

Description of qualifying rural areas of Longford

The administrative county of Longford.

PART 4

Description of qualifying rural areas of Roscommon

The District Electoral Divisions of Ballintober, Castleteheen, Carrowduff, Kilbride North, Lissonuffy, Killavackan, Termonbarry, Roosky, Kilglass North, Kilglass South, Bumlin, Cloonfinlough, Killukin (in Roscommon Rural District), Strokestown, Annaghmore, Tulsk, Coolougher, Ballinlough, Kiltullagh, Cloonfower, Artagh South, Artagh North, Ballaghaderreen, Edmondstown, Loughglinn, Buckill, Fairymount, Castlereagh, Frenchpark, Bellangare, Castleplunket, Baslick, Breedoge, Altagowlan, Lough Allen, Ballyfarnan, Keadue, Aghafin, Ballyformoyle, Crossna, Kilbryan, Boyle Rural, Boyle Urban, Tivannagh, Rushfield, Tumna North, Tumna South, Killukin (in Boyle No. 1 Rural District), Oakport, Rockingham, Danesfort, Cloonteem, Kilmore, Elia, Ballygarden, Aughrim East, Aughrim West, Creeve (in Boyle No. 1 Rural District), Creeve (in Roscommon Rural District), Elphin, Rossmore, Cloonyquinn, Ogulla, Mantua, Lisgarve, Kilmacumsy, Kilcolagh, Estersnow, Croghan, Killummod, Cregga, Cloonygormican, Kilbride South, Kilgefin, Cloontuskert, Drumdaff and Kilteevan.

PART 5

Description of qualifying rural areas of Sligo

The District Electoral Divisions of Ballintogher East, Ballynakill, Lisconny, Drumfin, Ballymote, Cloonoghill, Leitrim, Tobercurry, Kilturra, Cuilmore, Kilfree, Coolavin, Killaraght, Templevanny, Aghanagh, Kilmactranny, Ballynashee, Shancough, Drumcolumb, Riverstown, Lakeview, Bricklieve, Drumrat, Toomour, Kilshalvy, Killadoon, Streamstown, Cartron, Coolaney, Owenmore, Temple, Annagh, Carrickbannagher, Collooney and Ballintogher West.”.

PART 2 Customs and Excise

Chapter 1 Vehicle Registration Tax

78 Interpretation (Chapter 1).

78.—In this Chapter “the Act of 1992” means the Finance Act, 1992.

79 Amendment of section 130 (interpretation) of Act of 1992.

79.—Section 130 (as amended by the Finance (No. 2) Act, 1992) of the Act of 1992 is hereby amended by the insertion in the definition of “mechanically propelled vehicle” after “adapted and used for invalids” of “or a vehicle as respects which the Commissioners are satisfied that it is not capable of being propelled mechanically”.

80 Amendment of section 132 (charge of excise duty) of Act of 1992.

80.—As respects vehicle registration tax charged, levied and paid as on and from the 1st day of January, 1998, section 132 of the Act of 1992 is hereby amended in subsection (3) (inserted by the Finance (No. 2) Act, 1992)—

(a) in paragraph (a), by the substitution of “28 per cent.” for “29.25 per cent.” (inserted by section 85 of the Finance Act, 1994), and

(b) in paragraph (b), by the substitution of “22.5 per cent.” for “23.2 per cent.” (inserted by section 85 of the Finance Act, 1994).

81 Amendment of section 134 (permanent reliefs) of Act of 1992.

81.—Section 134 of the Act of 1992 is hereby amended—

(a) in subsection (11) (inserted by section 54 of the Finance Act, 1993), by the addition of the following proviso to paragraph (b):

“Provided that for the purposes of subsections (11) to (14) a vehicle shall not include a vehicle hired, lent or otherwise given or arranged by an authorised person as a replacement vehicle for a vehicle either being repaired or due to be repaired by him or on his behalf and not previously declared under subsection (11).”,

(b) by the substitution of the following subsection for subsection (13) (inserted by section 54 of the Finance Act, 1993):

“(13) A repayment to a person under subsection (11) shall not be made—

(a) where a vehicle has travelled less than 5,000 miles from the date of its declaration for registration,

(b) where a vehicle is removed from hire within 3 months of the date of its declaration for registration,

(c) where a vehicle is removed from hire prior to the 31st day of August in the year of its declaration for registration,

(d) where a vehicle is not at a premises used by the person for the purpose of carrying on the business of hiring vehicles under short-term self-drive contracts within 10 working days of the date of its declaration for registration,

(e) where any vehicle registration tax or value-added tax payable by the person by the date of repayment has not been paid, or

(f) in respect of a vehicle on which motor vehicle excise duty under the Order of 1979 has been paid prior to the 1st day of January, 1991.”,

and

(c) in subsection (15) (inserted by section 54 of the Finance Act, 1993) by the insertion of the following paragraph after paragraph (a):

“(aa) the vehicle or motor-cycle, as the case may be, has been kept and used for the purpose of demonstration for a period of not less than 3 months from the date of registration, and”.

82 Amendment of section 139 (offences and penalties) of Act of 1992.

82.—Section 139 of the Act of 1992 is hereby amended in subsection (3)—

(a) by the deletion of “or” where it last occurs in paragraph (e),

and

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

“(ee) to be in possession of the vehicle if it is a converted vehicle in relation to which particulars of the conversion have not been declared in accordance with section 131 or a converted vehicle in relation to which particulars of the conversion have been so declared but vehicle registration tax has not been paid on the declaration unless he is an authorised person, or”.

Chapter 2 Miscellaneous

83 Interpretation (Chapter 2).

83.—In this Chapter “the Order of 1975” means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 (S.I. No. 307 of 1975).

84 Amendment of provisions relating to refreshment houses licences.

84.—The Refreshment Houses (Ireland) Act, 1860, is hereby amended—

(a) in section 8 (as amended by section 96 of, and the Sixth Schedule to, the Finance (1909-10) Act, 1910), by the deletion of the following:

“Provided always, that no licence to sell foreign wine by retail to be consumed on the premises shall be granted for any refreshment house which, with the premises belonging thereto and occupied therewith, shall be under the value of eight pounds a year, nor for any refreshment house situated in any city, borough, town or place containing a population exceeding ten thousand according to the then last Parliamentary census, if such refreshment house, with the premises belonging thereto and occupied therewith, shall be under the value of fifteen pounds a year; and”,

and

(b) in section 13 (as amended by section 50(2)(b) of the Finance Act, 1989), by the deletion of “, and the net annual value of such house, according to the valuation thereof last made for poor law purposes under the laws then in force” and by the deletion of “or not of the annual value required by this Act,”.

85 Amendment of section 21 (hours of business in registered premises) of Betting Act, 1931.

85.—Section 21(1) of the Betting Act, 1931, is hereby amended as on and from the 1st day of April, 1999, by the substitution of the following subsection for subsection (1):

“(1) Registered premises shall not be opened or kept open for the transaction of business at any time on any Christmas Day, Good Friday or Easter Sunday and in the case of any other day—

(a) from the 1st day of September in any year to the 31st day of March in the following year, at any time before the hour of seven o'clock in the morning and after the hour of half past six o'clock in the evening of such other day, and

(b) from the 1st day of April in any year to the 31st day of August in that year, at any time before the hour of seven o'clock in the morning and after the hour of ten o'clock in the evening of such other day.”.

86 Increase in duty on bookmaker's premises registration certificate.

86.—The duty of excise imposed by section 18 of the Finance Act, 1931, on the registration, or on the renewal of the registration, under the Betting Act, 1931, of any premises in which the business of bookmaking is carried on shall be charged, levied and paid, as on and from the 1st day of December, 1999, at the rate of £300 in lieu of the rate specified at reference number 5 in Part IV of the Sixth Schedule to the Finance Act, 1992, and accordingly from that date the reference, opposite that reference number in column 4 (operative date), to the 1st day of December, 1992, shall be construed as a reference to the 1st day of December, 1999, and the reference, opposite that reference number in column 5 (rate of duty), to £200 shall be construed as a reference to £300.

87 Amendment of section 43 (gaming machine licence duty) of Finance Act, 1975.

87.—(1) Section 43 of the Finance Act, 1975, is hereby amended in paragraph (aa) (inserted by section 74(2) of the Finance Act, 1980) of subsection (7) by the substitution of “Fridays, Saturdays, Sundays and holidays” for “Saturdays, Sundays and holidays” in both places where it occurs.

(2) (a) Subsection (1) shall apply with effect from the 1st day of May, 1998, in respect of a gaming machine licence, of the type referred to in section 43(7)(aa) of the Finance Act, 1975, granted on or after that date under section 43(4) of the Finance Act, 1975.

(b) In respect of a gaming machine licence, of the type referred to in section 43(7)(aa) of the Finance Act, 1975, granted before the 1st day of May, 1998, under section 43(4) of the Finance Act, 1975, which is a subsisting licence at that date, subsection (1) shall apply with effect from that date for the balance of the period for which such licence remains in force.

88 Amendment of section 123 (rates of duty) of Finance Act, 1992.

88.—(1) Section 123 of the Finance Act, 1992, is hereby amended in the proviso (inserted by section 88 of the Finance Act, 1994) to paragraph (c) (inserted by section 70 of the Finance Act, 1993) by the substitution of “Fridays, Saturdays, Sundays and public holidays” for “Saturdays, Sundays and public holidays”.

(2) (a) Subsection (1) shall apply with effect from the 1st day of May, 1998, in respect of an amusement machine licence, of the type referred to in section 123(c) of the Finance Act, 1992, granted on or after that date under section 122 of the Finance Act, 1992.

(b) In respect of an amusement machine licence, of the type referred to in section 123(c) of the Finance Act, 1992, granted before the 1st day of May, 1998, under section 122 of the Finance Act, 1992, which is a subsisting licence at that date, subsection (1) shall apply with effect from that date for the balance of the period for which such licence remains in force.

89 Hydrocarbons.

89.—(1) In this section—

“the Act of 1988” means the Finance Act, 1988;

“the Act of 1997” means the Finance Act, 1997.

(2) The duty of excise on mineral hydrocarbon light oil imposed by paragraph 11(1) of the Order of 1975, shall, in lieu of the rate specified in subsection (2) of section 82 of the Act of 1997, be charged, levied and paid, as on and from the 4th day of December, 1997, at the rate of £361.36 per 1,000 litres.

(3) The rebate of duty on mineral hydrocarbon light oil provided for in subsection (3) of section 56 of the Act of 1988, shall, as respects mineral hydrocarbon light oil on which it is shown to the satisfaction of the Revenue Commissioners that duty at the rate specified in subsection (2) of this section has been paid on or after the 4th day of December, 1997, be calculated at the rate of £66.92 per 1,000 litres.

(4) For the purposes of the rebate of duty on mineral hydrocarbon light oil provided for in subsection (4) of section 82 of the Act of

1997, the said subsection (4) shall apply as on and from the 4th day of December, 1997, as if the reference therein to subsection (2) of the said section 82, were a reference to subsection (2) of this section.

90 Amendment of section 21 (duties on hydrocarbon oil) of Finance Act, 1935.

90.—(1) Section 21 of the Finance Act, 1935, is hereby amended—

(a) in subsection (15)—

(i) in the definition of “motor vehicle” (as amended by section 84(6) of the Finance Act, 1994) by the insertion after “on roads,” of “including any vehicle which is designed, constructed or modified to be suitable for traction on a road by a mechanically propelled vehicle,”, and

(ii) by the insertion after the interpretation of “mobile well drilling equipment” (inserted by the said section 84(6)) of the following definition:

“the expression ‘fuel tank’ means any tank in or on a motor vehicle which is used or is capable of being used to supply fuel for combustion in the engine of the motor vehicle for the purposes of propulsion or of another motor vehicle which can provide traction for such purposes;”,

and

(b) by the insertion of the following subsection after subsection (15):

“(16) For the purposes of the definition of ‘fuel tank’ in subsection (15) of this section, it shall be presumed, until the contrary is shown, that a tank is capable of being used to supply fuel for combustion in the engine of a motor vehicle for the purposes of propulsion if there are any outlets from the tank other than—

(a) those which are permanently and solely connected to and for the sole supply of fuel for refrigeration, oxygenation, thermal insulation or other specialised systems in or on the motor vehicle, or

(b) those which are solely for the purpose of discharging fuel from an oil road tanker to a vessel or tank separate from such oil tanker.”.

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

91 Amendment of section 731 (exemption from rates) of Merchant Shipping Act, 1894.

91.—Section 731 of the Merchant Shipping Act, 1894, is hereby amended by the addition of the following proviso:

“Provided that no such exemption shall be allowed in respect of excise duty on any hydrocarbon oil.”.

92 Amendment of paragraph 8 of Order of 1975.

92.—Paragraph 8 of the Order of 1975 is hereby amended by the substitution of the following subparagraph for subparagraph (4) (inserted by Regulation 17 of the European Communities (Customs and Excise) Regulations, 1992 (S.I. No. 394 of 1992)):

“(4) In this paragraph ‘cider and perry’ means cider and perry exceeding 1.2 vol. but not exceeding 22 vol. obtained from the fermentation of apple or pear juice and without the addition of any other alcoholic liquor or any liquor or substance which—

(i) imparts colour or flavour, and

(ii) in the opinion of the Revenue Commissioners, significantly alters the character of the product from what it otherwise would be.”.

93 Deferment of duty on spirits.

93.—Paragraph 4 of the Order of 1975 is hereby amended by the substitution of the following subparagraph for subparagraph (3) as amended by Regulation 4 of the European Communities (Deferred Payment of Excise Duty on Spirits and Imported Made Wine and Beer) Regulations, 1980 (S.I. No. 405 of 1980):

“(3) The Revenue Commissioners may, subject to compliance with such conditions for securing payment of the duty as they may think fit to impose, permit payment of the duty imposed by subparagraph (2) of this paragraph to be deferred to a day not later than—

(a) in case the duty is payable on a day in the month of December in any year not later than the 20th day of that month, the last day of that month in the same year, or

(b) in any other case, the last day of the month succeeding the month in which the duty is payable.”.

94 Tobacco products.

94.—(1) In this section and in Schedule 7—

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

“the Act of 1997” means the Finance Act, 1997;

“cigarettes”, “cigars”, “fine-cut tobacco for the rolling of cigarettes” and “other smoking tobacco” have the same meanings as they have in the Act of 1977, as amended by the Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979 (S.I. No. 296 of 1979), by Regulations 26 and 29 of the European Communities (Customs and Excise) Regulations, 1992 (S.I. No. 394 of 1992) and by section 86 of the Act of 1997.

(2) The duty of excise on tobacco products imposed by section 2 of the Act of 1977, shall, in lieu of the several rates specified in the Seventh Schedule to the Act of 1997, be charged, levied and paid, as on and from the 4th day of December, 1997, at the several rates specified in Schedule 7.

95 Amendment of section 103 (interpretation (Chapter II)) of Finance Act, 1992.

95.—Section 103 (as amended by Regulation 7(a) of the European Communities (Customs and Excise) Regulations, 1992 (S.I. No. 394 of 1992)) of the Finance Act, 1992, is hereby amended in subsection (1) by the substitution of the following definition for the definition of “Community”:

“‘Community’ means the territory of the Community as defined by the Treaty establishing the European Economic Community and, in particular, Article 227 thereof except for the following national territories:

(a) in the case of Germany, the Island of Heligoland and the territory of Bsingen,

(b) in the case of Italy, Livigno, Campione d'Italia and the Italian waters of Lake Lugano,

(c) in the case of the United Kingdom, the Channel Islands,

(d) in the case of Greece, Mount Athos,

(e) in the case of Spain, the Canary Islands, Ceuta and Melilla,

(f) in the case of France, the overseas Departments of the Republic, and

(g) in the case of Finland, the land Islands;”.

96 Amendment of section 111 (accompanying documents) of Finance Act, 1992.

96.—Section 111 (as amended by Regulation 11 of the European Communities (Customs and Excise) Regulations, 1992 (S.I. No. 394 of 1992) and by section 100 of the Finance Act, 1995) of the Finance Act, 1992, is hereby amended—

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

“(1) With the exception of excisable products—

(a) referred to in subsection (2) of section 106, and

(b) dispatched or transported by or on behalf of a State vendor or a non-State vendor in accordance with the provisions of section 107,

excisable products, in the course of delivery—

(i) from another Member State to any person in the State,

(ii) from any person in the State to any person in another Member State,

(iii) from the State through another Member State to a place of destination in the State,

(iv) through the State from another Member State to a place of destination in that Member State,

(v) from one Member State through the State to another Member State,

(vi) to the State from another Member State in a case where exemption from excise duty applies under section 113(1), and

(vii) from the State to another Member State under any exemption provided for in paragraph 1 of Article 23 of the Directive,

shall, at all times while within the State during the course of such delivery, be accompanied by a document (in this Chapter referred to as ‘an accompanying document’).”,

and

(b) by the insertion after subsection (2A) (inserted by the Finance Act, 1995) of the following subsection:

“(2B) Where excisable products are dispatched under a duty-suspension arrangement for delivery to a person in the State in a case where exemption from excise duty applies under subsection (1) of section 113, such person shall take all reasonable steps to ensure that, in addition to the accompanying document, a certificate (to be known as ‘the exemption certificate’) is dispatched with and accompanies the said excisable products in the course of their delivery.”.

97 Treatment of losses.

97.—Section 114 of the Finance Act, 1992, is hereby amended by the substitution of the following subsection for subsection (2):

“(2) Losses, other than those referred to in subsection (1), and any shortages of excisable products under a duty-suspension arrangement shall be liable to excise duty at the rate in operation at the time such losses or shortages occurred, as established to the satisfaction of an officer, or at the time such losses or shortages came to the notice of an officer, and duty shall be payable immediately and shall be charged, levied and paid in the prescribed manner by the person authorised to produce, process, hold, transport, deliver or receive (as the case may be) such excisable products.”.

98 General mutual assistance.

98.—Chapter II of Part II of the Finance Act, 1992, is hereby amended by the insertion of the following section after section 116:

“116A.— (1) In this section—

‘authorised officer’ means an officer authorised in writing by the Commissioners for the purposes of this section;

‘the Council Directive’ means Council Directive No. 77/799/EEC of 19 December 1977[^1], as amended by Council Directive No. 79/1070/EEC of 6 December 1979[^2] and Council Directive No. 92/12/EEC of 25 February 1992[^3];

(2) (a) The Commissioners and authorised officers may disclose to the competent authorities of another Member State any information concerning excise duties required to be so disclosed by virtue of the Council Directive.

(b) Neither the Commissioners nor an authorised officer shall disclose any information in pursuance of the Council Directive unless satisfied that the competent authorities of the other Member State concerned are bound by, or have undertaken to observe, rules of confidentiality with respect to the information which are not less strict than those applying to it in the State.

(c) Nothing in this section shall permit the Commissioners or an authorised officer to authorise the use of information disclosed by virtue of the Council Directive to the competent authorities of another Member State other than for the purposes of taxation or to facilitate legal proceedings for failure to observe the tax laws of that State.”.

99 Mutual assistance for the recovery of claims.

99.—Chapter II of Part II of the Finance Act, 1992, is hereby amended by the insertion of the following section after section 116A (inserted by this Act)—

“116B.—(1) (a) In this section—

‘the Commission Directive’ means Commission Directive No. 77/794/EEC of 4 November 1977[^1];

‘the Council Directive’ means Council Directive No. 76/308/EEC of 15 March 1976[^2], as amended by Council Directive No. 79/1071/EEC of 6 December 1979[^3] and Council Directive No. 92/12/EEC of 25 February 1992.

(b) A word or expression that is used in this section and is also used in the Council Directive or in the Commission Directive has, unless the contrary intention appears, the meaning in this section that it has in the Council Directive or the Commission Directive, as the case may be.

(2) The amount of excise duty specified in any request duly made pursuant to the Council Directive by an authority in another Member State for the recovery in the State of any amount claimed by such an authority pursuant to a claim referred to in Article 2 of the Council Directive shall be recoverable in any court of competent jurisdiction by the Minister for Finance and for the purposes of the foregoing the amount shall be regarded as being a debt due to that Minister, by the person against whom the claim is made by such an authority, in respect of a duty or tax under the care and management of the Commissioners or a simple contract debt due by such person to that Minister, as may be appropriate.

(3) The rules laid down in—

(a) Articles 4 to 12 and 14 to 17 of the Council Directive,

and

(b) Articles 2 to 21 of the Commission Directive,

shall apply in relation to claims in respect of excise duty referred to in Article 2 of the Council Directive which arise in another Member State and which are the subject of legal proceedings instituted under this section.

(4) In any legal proceedings instituted under this section any document which is in the form specified in Annex III to the Commission Directive and which purports to be authenticated in the manner specified in Article 11 of that Directive shall be received in evidence without proof of any seal or signature thereon or that any signatory thereto was the proper person to sign it, and such document shall, until the contrary is shown, be sufficient evidence of the facts therein stated.

(5) (a) Legal proceedings instituted under this section for the recovery of any sum shall be stayed if the defendant satisfies the court that legal proceedings relevant to his liability on the claim to which the proceedings so instituted relate are pending, or are about to be instituted, before a court, tribunal or other competent body in another Member State, but any such stay may be removed if the legal proceedings in such Member State are not prosecuted or instituted with reasonable expedition.

(b) In any legal proceedings instituted under this section it shall be a defence for the defendant to show that a final decision on the claim to which the proceedings relate has been given in his favour by a court, tribunal or other body of competent jurisdiction in another Member State, and, in relation to any part of a claim to which such legal proceedings relate, it shall be a defence for the defendant to show that such a decision has been given in relation to that part of the claim.

(c) No question shall be raised in any legal proceedings instituted under this section as to the defendant's liability on the claim to which the proceedings relate except as provided in paragraph (b) of this subsection.

(d) For the purposes of this section legal proceedings shall be regarded as pending so long as an appeal may be brought against any decision in the proceedings and for these purposes a decision against which no appeal lies or against which an appeal lies within a period which has expired without an appeal having been brought shall be regarded as being a final decision.”.

100 Amendment of section 87A (obligation to answer certain questions, detention and arrest) of Finance Act, 1995.

100.—Section 87A (inserted by the Finance Act, 1997) of the Finance Act, 1995, is hereby amended by the substitution in paragraph (b) of subsection (3) of “such member may arrest the person without warrant” for “such officer may arrest the person without warrant”.

101 Taking of samples and analysis (customs and excise).

101.—(1) In this section—

“agency” means the State Laboratory and any other body or person designated by the State Chemist or the Commissioners for the purpose of this section to analyse, test or examine a sample forwarded to such agency;

“the Commissioners” means the Revenue Commissioners;

“functions” includes powers and duties;

“officer” means an officer of the Commissioners;

“owner”, in relation to goods, includes a person in charge of or in possession of the goods;

“prescribed” means prescribed by regulations made by the Commissioners under subsection (14);

“record” means a record in, or capable of being read in, a legible form;

“the State Chemist” means the head of the State Laboratory or the person for the time being duly exercising the functions of the State Chemist or a person appointed under subsection (11) to carry out the functions of the State Chemist under this section.

(2) This section shall apply to samples of any goods taken by an officer under the laws relating to customs or the laws relating to excise where the officer considers that any of the samples may, subsequently, be required to be analysed, tested or examined by an agency for the purpose of deciding whether any proceedings should be instituted under those laws or, where it has been so decided, for the purpose of such proceedings.

(3) Where subsection (2) applies, the officer shall—

(a) where the owner or the owner's representative is present, inform him or her of the goods in respect of which the officer intends to take samples, and

(b) in respect of the goods concerned take, where possible, at least 2 samples or otherwise a single sample thereof and

(i) seal each sample, or

(ii) where already packaged in a container suitable for sealing, seal, in respect of each such sample, the container in which it is packaged, or

(iii) where appropriate in the circumstances, place each sample in a separate container and seal each such container.

(4) Before sealing a sample or container under subsection (3)(b), the officer concerned shall satisfy himself or herself that the sample or the container (as the case may be) is in a condition suitable for sealing.

(5) One of the samples of goods to which subsection(3)(b) relates shall—

(a) where subsection (3)(a) also applies, be offered to the owner of the goods or the owner's representative and such person may choose the sample to be given to him or her, and

(b) in any other case, be given to the owner of the goods, or the owner's representative, upon request made—

(i) having regard to the nature of the sample, including any perishable nature, within a reasonable period, or

(ii) within 3 months,

of the sample being sealed in accordance with subsection (3)(b), whichever first occurs, but nothing in this paragraph shall be construed as preventing the sample being so given upon a request made subsequently:

Provided that this subsection shall not apply where the samples relate to goods all of which have been detained or seized under the laws relating to customs or the laws relating to excise.

(6) Where an officer decides that a sample to which subsection (3)(b) relates is to be analysed, tested or examined by an agency in accordance with this section, an officer shall, as soon as practicable, forward it or cause it to be forwarded to an agency.

(7) Where a sample to which this section relates has been forwarded to the State Laboratory for the purpose of being analysed, tested or examined by an agency, the State Chemist may have it analysed, tested or examined by either—

(a) the State Laboratory, or

(b) an agency designated under subsection (10),

and where the State Chemist decides that paragraph (b) should apply to a sample, he or she shall, as soon as practicable, forward it or cause it to be forwarded to that agency.

(8) Where a sample is taken, sealed, offered to the owner or the owner's representative, stored, given to the owner or the owner's representative, forwarded or caused to be forwarded to an agency by an officer each such officer shall keep a record thereof, and a record of any other matter that may be prescribed for the purpose of this subsection.

(9) Every agency to which this section relates, shall, upon receipt of a sample, check whether it, or the container in which it is received, has a seal and, if it has, that the seal is intact and shall keep a written record thereof as well as a record of the receipt, storage and of any other matter that may be prescribed for the purpose of this subsection.

(10) The State Chemist and the Commissioners may each designate in writing one or more than one body or person for the purpose of this section to analyse, test or examine a sample forwarded to such body or person, or a class of specified samples or samples generally and each such body or person shall be an agency for the purposes of this section.

(11) (a) Without prejudice to the exercise at any time by the State Chemist of his or her functions under this section, the State Chemist may authorise in writing one or more than one person employed in the State Laboratory to carry out those functions, and any such authorisation shall continue until revoked by the State Chemist for the time being or the person so authorised ceases to be employed in the State Laboratory.

(b) The functions of the Commissioners to designate one or more than one agency for the purposes of this section may be exercised by any officer duly authorised in writing to carry out those functions.

(12) Where in any proceedings under the laws relating to customs or under the laws relating to excise there is produced a document which purports to be—

(a) a designation in writing under subsection (10) or a certificate signed by the State Chemist, by one of the Commissioners or by a person authorised under paragraph (a) or (b) of subsection (11) that a body or person is an agency for the purposes of this section in respect of a specified sample, a class of specified samples or samples generally (as the case may be),

(b) an authorisation in writing under paragraph (a) or (b) of subsection (11) or a certificate signed by the State Chemist or a Commissioner that a person is authorised to carry out the functions referred to in the said paragraph (a) or (b), as appropriate,

(c) a certificate from the State Laboratory or other agency certifying—

(i) that the agency concerned received the sample or container concerned with its seal unbroken or that it had no seal,

(ii) that the sample concerned was analysed, tested or examined, as the case may be, and

(iii) the conclusions, results or facts to be deduced from such analysis, test or examination, as the case may be,

then, until the contrary is shown, such document shall be sufficient evidence of the facts stated therein without proof of any signature or seal on it or that any signatory was a proper person to sign or authenticate the seal on it.

(13) Where a document has been issued under subsection (12), it shall be presumed, until the contrary is shown, that the provisions of either or both subsections (6) and (7), as appropriate, have been complied with in respect of the sample concerned.

(14) The Commissioners may make regulations for the purpose of giving effect to this section.

(15) In any proceedings under the laws relating to customs or under the laws relating to excise, nothing in this section shall be construed as preventing from being duly produced, otherwise than in accordance with the other provisions of this section, evidence of—

(a) the taking of a sample of goods under those laws, or

(b) any conclusions, results or facts deduced from any analysis, test or examination, as the case may be, of such a sample.

102 Transmission of samples for analysis.

102.—(1) In this section “agency”, “officer”, “the State Chemist” and “the Commissioners” have the same meaning as they have in section 101.

(2) Where, under the laws relating to customs or under the laws relating to excise, a sample is taken by an officer and it is decided to send it to an agency to be analysed, tested or examined and where the provisions of section 101 do not apply, an officer or the State Chemist may forward it or cause it to be forwarded to such agency.

103 Institution of proceedings under Customs Acts, etc.

103.—Notwithstanding anything to the contrary in the Customs Acts or otherwise, an order of the Revenue Commissioners shall not be required for the commencement or continuance of proceedings under those Acts.

PART 3 Value-Added Tax

104 Interpretation (Part 3).

104.—In this Part—

“the Principal Act” means the Value-Added Tax Act, 1972;

“the Act of 1992” means the Finance Act, 1992;

“the Act of 1997” means the Finance Act, 1997.

105 Amendment of section 3 (supply of goods) of Principal Act.

105.—Section 3 of the Principal Act is hereby amended in subsection (1) by the substitution of the following paragraph for paragraph (f)—

“(f) the appropriation of goods by a taxable person for any purpose other than the purpose of his business or the disposal of goods free of charge by a taxable person where—

(i) tax chargeable in relation to those goods—

(I) upon their purchase, intra-Community acquisition or importation by the taxable person, or

(II) upon their development, construction, assembly, manufacture, production, extraction or application under paragraph (e),

as the case may be, was wholly or partially deductible under section 12, or

(ii) the ownership of those goods was transferred to the taxable person in the course of a transfer of a business or part thereof and that transfer of ownership was deemed not to be a supply of goods in accordance with subsection (5)(b), and”.

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

106.—Section 4 of the Principal Act is hereby amended by the insertion of the following subsections after subsection (8) (inserted by the Act of 1997):

“(9) Where a disposal of an interest in immovable goods is chargeable to tax and where those goods have not been developed since the date of the disposal of that interest (hereafter referred to in this subsection as ‘the taxable interest’) any disposal of an interest in those goods after that date by a person other than the person who acquired the taxable interest shall, for the purposes of this Act, be deemed to be a supply of immovable goods to which subsection (6) applies.

(10) (a) Where a disposal of an interest in immovable goods is chargeable to tax and the person who acquires that interest is obliged to pay rent to another person (hereafter referred to in this subsection as ‘the landlord’) under the terms and conditions laid down in respect of that interest, the landlord—

(i) shall, notwithstanding the provisions of section 8, be deemed not to be a taxable person in respect of transactions in relation to those immovable goods other than—

(I) supplies of those immovable goods on which tax is chargeable in accordance with the provisions of this section, or

(II) supplies of other goods or services effected for consideration by the landlord, or

(III) post-letting expenses in respect of that interest,

(ii) shall not be entitled to deduct tax in respect of transactions in relation to those immovable goods other than—

(I) supplies of those immovable goods on which tax is chargeable in accordance with the provisions of this section other than subsection (4), or

(II) supplies of other goods or services effected for consideration by the landlord, or

(III) post-letting expenses in respect of that interest,

(iii) shall be deemed, where that landlord is not the person who made the disposal of the interest, to be a taxable person in respect of post-letting expenses in relation to that interest and shall in relation to those post-letting expenses be entitled to deduct tax, in accordance with section 12, as if those post-letting expenses were for the purposes of the landlord's taxable supplies.

(b) For the purposes of this subsection post-letting expenses in relation to an interest in immovable goods are expenses which the landlord incurs—

(i) in carrying out services which the landlord is obliged to carry out under the terms and conditions of the written contract entered into on the disposal of the interest which was chargeable to tax but does not include transactions the obligation to perform which is not reflected in the consideration on which tax was charged on the disposal of that interest, or

(ii) which directly relate to the collection of rent arising under the contract referred to in subparagraph (i), or

(iii) which directly relate to a review of rent where the terms and conditions of the contract referred to in subparagraph (i) provide for such a review, or

(iv) which directly relate to the exercise of an option to extend the interest or to exercise a breakclause in relation to that interest where the terms and conditions of the contract referred to in subparagraph (i) provide for such an option or such a break-clause,

but do not include any expenses relating to goods or services of the type specified in section 12(3).”.

107 Amendment of section 5 (supply of services) of Principal Act.

107.—Section 5 of the Principal Act is hereby amended—

(a) in subsection (6)—

(i) by the insertion in paragraph (dd) (inserted by the Act of 1997) after “a telecommunications service” of “, or a telephone card as defined in subsection (6A),”,

(ii) by the insertion of the following paragraph after paragraph (dd):

“(ddd) The place of supply of a telecommunications service or of a telephone card as defined in subsection (6A) shall be deemed, for the purposes of this Act, to be the State when that service is supplied by a taxable person from an establishment in the State and it is received, otherwise than for a business purpose, by a person whose usual place of residence is situated outside the Community, and it is effectively used and enjoyed in the State.”,

(iii) by the insertion in paragraph (e) (inserted by the Finance Act, 1986) after “specified in the Fourth Schedule” of “with the exception of the supply of services referred to in paragraphs (ddd) and (ee) in the circumstances specified in those paragraphs respectively and”, and

(iv) by the insertion of the following paragraph after paragraph (e):

“(ee) The place of supply of services of the description specified in paragraph (v) of the Fourth Schedule shall be deemed, for the purposes of this Act, to be the State, when those services are supplied by a person in the course or furtherance of business established in the State and they are received, otherwise than for a business purpose, by a person whose usual place of residence is situated outside the Community, and they are effectively used and enjoyed in the State.”,

and

(b) by the insertion of the following subsection after subsection (6):

“(6A) (a) Subject to paragraph (b), where the supply of a telephone card is taxable within the State and that telephone card is subsequently used outside the Community for the purpose of accessing a telecommunications service, the place of supply of that telecommunications service shall be deemed to be outside the Community and the supplier of that telephone card shall be entitled, in the taxable period within which that supplier acquires proof that that telephone card was so used outside the Community, to a reduction of the tax payable by that supplier in respect of the supply of that telephone card, by an amount calculated in accordance with paragraph (c).

(b) Where the supply of a telephone card is taxable in the State and the person liable for the tax on that supply is a person referred to in section 8(2)(a) who—

(i) is not entitled to a deduction, in accordance with section 12, of all of the tax chargeable in respect of that supply, or

(ii) is entitled to a deduction, in accordance with section 12, of the tax chargeable in respect of that supply because that card was acquired for the purposes of resale,

and that telephone card is subsequently used outside the Community for the purpose of accessing a telecommunications service, the place of supply of that telecommunications service shall be deemed to be outside the Community and the person who is taxable in respect of that supply of that telephone card shall be entitled, in the taxable period within which that person acquires proof that that telephone card was so used outside the Community, to a reduction of the tax payable in respect of that supply of that telephone card to the extent that that telephone card was so used.

(c) For the purposes of this subsection the amount of the reduction referred to in paragraph (a) shall be calculated as follows:

(A B)	C ______ C 100

where—

A equals the tax inclusive price charged by the supplier for that part of the right contained in the telephone card which was consumed in accessing the telecommunications service which was deemed to be supplied outside the Community,

B equals the tax inclusive price charged to the supplier for that part of the right contained in the telephone card which was consumed in accessing the telecommunications service which was deemed to be supplied outside the Community, and

C is the percentage rate of tax chargeable on the supply of the telephone card at the time of that supply by that supplier.

(d) Where a telephone card is used to access a telecommunications service, the value of the telephone card so used shall, for the purposes of section 10(2), be disregarded.

(e) In this subsection ‘telephone card’ means a card or a means other than money which confers a right to access a telecommunications service and for which, when the card or other means is supplied to a person other than for the purposes of resale, the supplier is entitled to a consideration in respect of the supply and for which the user of that card or other means is not liable for any further charge in respect of the receipt of the telecommunications service accessed by means of that card or other means.”.

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

108.—Section 8 of the Principal Act is hereby amended in subsection (3)—

(a) in paragraph (a):

(i) by the insertion of the following subparagraph after subparagraph (i):

“(ia) goods being livestock semen, the total consideration has not exceeded and is not likely to exceed £40,000 and, in calculating that total consideration, supplies of livestock semen to—

(I) any other farmer licensed as an artificial insemination centre in accordance with the provisions of the Live Stock (Artificial Insemination) Act, 1947, or

(II) a taxable person over whom that farmer exercises control,

shall be disregarded, or”,

(ii) by the substitution in subparagraph (iii) (inserted by the Act of 1997) of “services specified in subparagraph (i) and either or both of goods of the type specified in subparagraph (ia) and goods of the type specified in subparagraph (ii) supplied in the circumstances set out in that subparagraph” for “services and goods specified in subparagraph (i) and (ii)”,

(iii) by the insertion of “or” at the end of subparagraph (iii), and

(iv) by the insertion of the following after subparagraph (iii):

“(iv) goods of the type specified in subparagraph (ia) and goods of the type specified in subparagraph (ii) supplied in the circumstances set out in that subparagraph, the total consideration has not exceeded and is not likely to exceed £40,000,”,

(b) in subparagraph (ia) (inserted by the Act of 1997) of the proviso thereto by the insertion after “paragraph (a)(i)” of “, (a)(ia)”.

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

109.—Section 10 of the Principal Act is hereby amended in subsection (6) by the insertion after “goods or services” of “, other than telecommunications services,”.

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

110.—Section 11 of the Principal Act is hereby amended in subsection (1) (inserted by the Act of 1992) by the substitution in paragraph (f) of “3.6 per cent” for “3.3 per cent.” (inserted by the Act of 1997).

111 Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

111.—Section 12 of the Principal Act is hereby amended—

(a) by the insertion in subsection (1)(b)(iii) after “outside the State” of “, other than services consisting of the hiring out of motor vehicles (as defined in subsection (3)(b)) for utilisation in the State,”, and

(b) by the substitution in subsection (2) of “sections 20(1A) and 20(5)” for “section 20(1A)”.

112 Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

112.—Section 12A (inserted by the Value-Added Tax (Amendment) Act, 1978) of the Principal Act is hereby amended in subsection (1) by the substitution of “3.6 per cent” for “3.3 per cent.” (inserted by the Act of 1997).

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

113.—Section 13 of the Principal Act is hereby amended in subsection (3)(c) by the substitution of “or in respect of motor vehicles (as defined in section 12(3)(b))” for “or in respect of means of transport”.

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

114.—Section 20 of the Principal Act is hereby amended—

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

“(4) (a) In relation to any taxable period ending before the 1st day of May, 1998, no refund shall, subject to paragraph (b), be made under this section or any other provision of this Act or regulations unless a claim for that refund is made within the period of ten years from the end of the taxable period to which the claim relates.

(b) In relation to any taxable period commencing on or after the 1st day of May, 1998, and on or after the 1st day of May, 1999, in relation to any other taxable period, no refund shall be made under this section or under any other provision of this Act or regulations unless a claim for that refund is made within the period of six years from the end of the taxable period to which that claim relates.”,

and

(b) by the substitution of the following subsection for subsection (5) (inserted by the Act of 1992):

“(5)(a) Where, due to a mistaken assumption in the operation of the tax, whether that mistaken assumption was made by a taxable person, any other person or the Revenue Commissioners, a person accounts for an amount of tax for which that person was not properly accountable, hereafter referred to in this subsection as the ‘overpaid amount’, that person may claim a refund of the overpaid amount and the Revenue Commissioners shall, subject to the provisions of this subsection, refund to the claimant the overpaid amount unless that refund would result in the unjust enrichment of the claimant.

(b) Unjust enrichment of the claimant for the purposes of this section means the refund to a claimant of an overpaid amount or any part of an overpaid amount in circumstances where the cost of such overpaid amount or part thereof was, for practical purposes, passed on by the claimant to other persons in the price charged by the claimant for goods or services supplied by the claimant.

(c) Where, in relation to any claim under paragraph (a), the Revenue Commissioners have withheld an amount of the overpaid amount claimed under paragraph (a) as it would result in the unjust enrichment of the claimant the Revenue Commissioners shall, notwithstanding the provisions of paragraph (a), refund to the claimant out of the amount withheld, the amount quantified at paragraph (d)(iii) which would appropriately compensate the claimant for any loss of profits due to the mistaken assumption made in the operation of the tax, where the Revenue Commissioners are satisfied that the conditions in paragraph (d) have been met.

(d) The conditions referred to in paragraph (c), are that the claimant must—

(i) establish, based on an economic analysis which takes into account the price elasticity of demand of the goods or services supplied by the claimant, that the claimant's business has suffered a loss of turnover due to the mistaken assumption made in the operation of the tax,

(ii) quantify the extent of that loss,

(iii) quantify the extent of the claimant's loss of profits due to that loss of turnover.

(e) Where, in relation to any claim under paragraph (a), the Revenue Commissioners have withheld an amount of the overpaid amount claimed under paragraph (a) as it would result in the unjust enrichment of the claimant the Revenue Commissioners shall, notwithstanding the provisions of paragraph (a), refund to the claimant that part of the withheld amount which the claimant has undertaken to repay to the persons to whom the cost of the overpaid amount was passed on where they are satisfied that the claimant has adequate arrangements in place to identify and repay those persons.

(f) Where a claimant receives a refund in accordance with paragraph (e) and fails to repay the persons concerned at the latest by the thirtieth day next following the payment by the Revenue Commissioners of that refund, then any amount not so repaid shall, for the purposes of this Act, be treated as if it were tax due by the claimant for the taxable period within which that day falls.”.

115 Amendment of section 30 (time limits) of Principal Act.

115.—Section 30 of the Principal Act is hereby amended in subsection (4) by the substitution of the following paragraphs for paragraph (a):

“(a) (i) In relation to any taxable period ending before the 1st day of May, 1998, an estimation or assessment of tax under section 22 or 23 may, subject to subparagraph (ii), be made at any time not later than ten years after the end of the taxable period to which the estimate or assessment relates or, where the period in respect of which the estimate or assessment is made consists of two or more taxable periods, after the end of the earlier or earliest taxable period comprised in such period.

(ii) In relation to any taxable period commencing on or after the 1st day of May, 1998, and on or after the 1st day of May, 1999, in relation to any other taxable period, an estimation or assessment of tax under section 22 or 23 may be made at any time not later than six years after the end of the taxable period to which the estimate or assessment relates or, where the period in respect of which the estimate or assessment is made consists of two or more taxable periods, after the end of the earlier or earliest taxable period comprised in such period.

(aa) Notwithstanding paragraphs (a)(i) and (a)(ii) in a case in which any form of fraud or neglect has been committed by or on behalf of any person in connection with or in relation to tax, an estimate or assessment as aforesaid may be made at any time for any period for which, by reason of the fraud or neglect, tax would otherwise be lost to the Exchequer.”.

116 Amendment of Second Schedule to Principal Act.

116.—The Second Schedule to the Principal Act is hereby amended—

(a) by the insertion of the following paragraph after paragraph (vb) (inserted by the Finance Act, 1993):

“(vc) the supply of navigation services by the Irish Aviation Authority to meet the needs of aircraft used by a transport undertaking operating for reward chiefly on international routes;”,

and

(b) by the substitution of the following paragraph for paragraph (xva) (inserted by the Finance Act, 1982):

“(xva) printed books and booklets including atlases but excluding—

(a) newspapers, periodicals, brochures, catalogues and programmes,

(b) books of stationery, cheque books and the like,

(c) diaries, organisers, yearbooks, planners and the like the total area of whose pages consist of 25 per cent or more of blank spaces for the recording of information,

(d) albums and the like, and

(e) books of stamps, of tickets or of coupons.”.

117 Amendment of Sixth Schedule to Principal Act.

117.—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 (xia) (inserted by the Act of 1997):

“(xib) animal insemination services;

(xic) livestock semen;

(xid) live poultry and live ostriches;”,

and

(b) by the substitution of the following paragraph for paragraph (xii):

“(xii) printed matter consisting of:

(a) newspapers and periodicals;

(b) brochures, leaflets and programmes;

(c) catalogues, including directories, and similar printed matter;

(d) maps, hydrographic and similar charts;

(e) printed music other than in book or booklet form;

but excluding:

(i) other printed matter wholly or substantially devoted to advertising,

(ii) the goods specified in subparagraphs (b) to (e) of paragraph (xva) of the Second Schedule, and

(iii) any other printed matter;”.

PART 4 Stamp Duties

118 Amendment of section 54 (meaning of “conveyance on sale”) of Stamp Act, 1891.

118.—Section 54 of the Stamp Act, 1891, is hereby amended by the substitution of “upon the sale or compulsory acquisition thereof” for “upon the sale thereof”.

119 Amendment of section 59 (certain contracts to be chargeable as conveyances on sale) of Stamp Act, 1891.

119.—(1) Section 59 of the Stamp Act, 1891, is hereby amended by the insertion of the following subsection after subsection (6):

“(7) In subsection (1) ‘stock, or marketable securities’ does not include a share warrant issued in accordance with the provisions of section 88 of the Companies Act, 1963.”.

(2) This section shall apply to contracts or agreements for the sale of share warrants entered into on or after the 4th day of March, 1998.

120 Amendment of First Schedule to Stamp Act, 1891.

120.—The heading “BILL OF EXCHANGE or PROMISSORY NOTE” in the First Schedule to the Stamp Act, 1891, is hereby amended—

(a) by the substitution for “drawn in the State of the following:	7p”
“Where drawn on an account in the State	7p
---	---
In any other case:
Where drawn or made in the State	7p”;

and

(b) by the insertion of the following exemptions:

“(10) Direct debits and standing orders.

(11) Bill drawn on an account outside the State.”.

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

121.—(1) Section 92 of the Finance Act, 1982, is hereby amended in subsection (1) by the substitution, in paragraph (c) of the definition of “excluded amount”, of “classes I, II, III, IV, V, VI, VII, VIII and IX” for “class VII”.