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FINANCE ACT, 2000

Type Act

Publication 2000-03-23

Last updated 2021-12-21

State Partially repealed superseded text

Text As published

Source Irish Statute Book

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articles 166

This is the act as published. Later amendments are not folded into the text below: each one is a separate act in this repository and an entry in this law's history.

8 amending acts · 2021-12-21, Finance Act 2021

Act to charge and impose certain duties of customs and inland revenue (including excise), to amend the law relating to customs and inland revenue (including excise) and to make further provisions in connection with finance

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“Section 739D.	SCHEDULE 2B
	INVESTMENT UNDERTAKINGS: DECLARATIONS
	Interpretation
	1. In this Schedule—
	‘appropriate person’, in relation to a pension scheme, means—
	(a) in the case of an exempt approved scheme (within the meaning of section 774), the administrator (within the meaning of section 770) of the scheme,
	(b) in the case of a retirement annuity contract to which section 784 or 785 applies, the person lawfully carrying on in the State the business of granting annuities on human life with whom the contract is made, and
	(c) in the case of a trust scheme to which section 784 or 785 applies, the trustees of the trust scheme;
	‘tax reference number’, in relation to a person, has the meaning assigned to it by section 885 in relation to a specified person within the meaning of that section.
	Declarations of pension schemes
	2. The declaration referred to in section 739D(6)(a) is a declaration in writing to the investment undertaking which—
	(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,
	(b) is signed by the declarer,
	(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(d) declares that, at the time when the declaration is made, the person entitled to the units is a pension scheme,
	(e) contains the name and tax reference number of the pension scheme,
	(f) contains a certificate by the appropriate person in relation to the pension scheme that, to the best of that person's knowledge and belief, the declaration made in accordance with subparagraph (d) and the information furnished in accordance with subparagraph (e) are true and correct, and
	(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.
	Declaration of company carrying on life business
	3. The declaration referred to in section 739D(6)(b) is a declaration in writing to the investment undertaking which—
	(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,
	(b) is signed by the declarer,
	(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(d) declares that, at the time when the declaration is made, the person entitled to the units is a company carrying on life business within the meaning of section 706,
	(e) contains the name and tax reference number of the company, and
	(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.
	Declarations of investment undertakings
	4. The declaration referred to in section 739D(6)(c) is a declaration in writing to the investment undertaking which—
	(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,
	(b) is signed by the declarer,
	(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(d) declares that, at the time the declaration is made, the person entitled to the units is an investment undertaking,
	(e) contains the name and tax reference number of the investment undertaking, and
	(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.
	Declarations of special investment scheme
	5. The declaration referred to in section 739D(6)(d) is a declaration in writing to the investment undertaking which—
	(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,
	(b) is signed by the declarer,
	(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(d) declares that, at the time the declaration is made, the person entitled to the units is a special investment scheme,
	(e) contains the name and tax reference number of the special investment scheme, and
	(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.
	Declarations of unit trust
	6. The declaration referred to in section 739D(6)(e) is a declaration in writing to the investment undertaking which—
	(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,
	(b) is signed by the declarer,
	(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(d) declares that, at the time the declaration is made, the person entitled to the units is a unit trust to which section 731(5)(a) applies,
	(e) contains the name and tax reference number of the unit trust, and
	(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.
	Declaration of charity
	7. The declaration referred to in section 739D(6)(f) is a declaration in writing to the investment undertaking which—
	(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the undertaking is made,
	(b) is signed by the declarer,
	(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(d) declares that, at the time when the declaration is made, the person entitled to the units is a person referred to in section 739D(6)(f)(i),
	(e) contains the name and address of that person,
	(f) contains a statement that at the time when the declaration is made the units in respect of which the declaration is made are held for charitable purposes only and—
	(i) form part of the assets of a body of persons or trust treated by the Revenue Commissioners as a body or trust established for charitable purposes only, or
	(ii) are, according to the rules or regulations established by statute, charter, decree, deed of trust or will, held for charitable purposes only and are so treated by the Revenue Commissioners,
	(g) contains an undertaking by the declarer that if the person mentioned in subparagraph (d) ceases to be a person referred to in section 739D(6)(f)(i), the declarer will notify the investment undertaking accordingly, and
	(h) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.
	Declaration of qualifying management company and specified company
	8. The declaration referred to in section 739D(6)(g) is a declaration in writing to the investment undertaking which—
	(a) is made by a person (in this paragraph referred to as the ‘declarer’) who is entitled to the units in respect of which the declaration is made,
	(b) is signed by the declarer,
	(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(d) declares that, at the time the declaration is made, the person entitled to the units is a qualifying management company or, as the case may be, a specified company,
	(e) contains the name and tax reference number of the declarer, and
	(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.
	Declaration of qualifying fund manager
	9. The declaration referred to in section 739D(6)(h) is a declaration in writing to the investment undertaking which—
	(a) is made by a qualifying fund manager (in this paragraph referred to as the ‘declarer’) in respect of units which are assets in an approved retirement fund or, as the case may be, an approved minimum retirement fund,
	(b) is signed by the declarer,
	(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(d) declares that, at the time when the declaration is made, the units in respect of which the declaration is made—
	(i) are assets of an approved retirement fund or, as the case may be, an approved minimum retirement fund, and
	(ii) are managed by the declarer for the individual who is beneficially entitled to the units,
	(e) contains the name, address and tax reference number of the individual referred to in subparagraph (d),
	(f) contains an undertaking by the declarer that if the units cease to be assets of the approved retirement fund or, as the case may be, the approved minimum retirement fund, including a case where the units are transferred to another such fund, the declarer will notify the investment undertaking accordingly, and
	(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.
	Declarations of non-resident on acquisition of units
	10. The declaration referred to in section 739(D)(7)(a)(i) is a declaration in writing to the investment undertaking which—
	(a) is made by a person (in this paragraph referred to as the ‘declarer’) who is entitled to the units in respect of which the declaration is made,
	(b) is made on or about the time when the units are applied for or acquired by the declarer,
	(c) is signed by the declarer,
	(d) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(e) declares that, at the time the declaration is made, the declarer is not resident in the State,
	(f) contains the name and address of the declarer,
	(g) contains an undertaking by the declarer that if the declarer becomes resident in the State, the declarer will notify the investment undertaking accordingly, and
	(h) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.
	Declaration of non-corporate person
	11. The declaration referred to in section 739D(7)(a)(ii) is a declaration in writing to the investment undertaking which—
	(a) is made by the person (in this paragraph referred to as the ‘declarer’) who is entitled to the units in respect of which the declaration is made,
	(b) is signed by the declarer,
	(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(d) declares that the declarer, at the time the declaration is made, is neither resident nor ordinarily resident in the State,
	(e) contains the name and address of the declarer,
	(f) contains an undertaking by the declarer that if the declarer becomes resident in the State, the declarer will notify the investment undertaking accordingly, and
	(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.
	Declaration to Collector-General
	12. The declaration referred to in section 739D(8)(a) is a declaration in writing to the Collector-General which—
	(a) is made and signed by the investment undertaking,
	(b) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(c) contains the name, address and tax reference number of the investment undertaking,
	(d) declarer that, to the best of the investment undertaking's knowledge and belief, no units in the investment undertaking were held on 1 April 2000 by a person who was resident in the State at that time, other than such persons whose names and addresses are set out on the schedule to the declaration, and
	(e) contains a schedule which sets out the name and address of each person who on 1 April 2000 was a unit holder in the investment undertaking and who was on that date, resident in the State.
	Declaration of intermediary
	13. The declaration referred to in section 739D(9)(a) is a declaration in writing to the investment undertaking which—
	(a) is made and signed by the intermediary,
	(b) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
	(c) contains the name and address of the intermediary,
	(d) declares that, at the time of making the declaration, to the best of the intermediary's knowledge and belief, the person who has beneficial entitlement to each of the units in respect of which the declaration is made—
	(i) is not resident in the State, where that person is a company, and
	(ii) where that person is not a company, the person is neither resident nor ordinarily resident in the State,
	(e) contains an undertaking that where the intermediary becomes aware at any time that the declaration made under subparagraph (d) is no longer correct, the intermediary will notify the investment undertaking accordingly, and
	(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.”.

59 Amendment of section 172A (interpretation) of Principal Act.

59.—The Principal Act is amended in section 172A (inserted by the Finance Act, 1999) by the substitution in subsection (1)(a) for the definition of “collective investment undertaking” of the following definition:

“‘collective investment undertaking’ means—

(i) a collective investment undertaking within the meaning of section 734,

(ii) an undertaking for collective investment within the meaning of section 738, or

(iii) an investment undertaking within the meaning of section 739B (inserted by the Finance Act, 2000),

not being an offshore fund within the meaning of section 743;”.

60 Amendment of section 659 (farming: allowance for capital expenditure on the construction of farm buildings, etc. for control of pollution) of Principal Act.

60.—Section 659 of the Principal Act is amended—

(a) in paragraph (c) of subsection (1) by the substitution of “6 April 2003” for “the 6th day of April, 2000,”, and

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

“(2)

(a) Subject to the provisions of Article 6 of Council Regulation (EEC) No. 2328/91 of 15 July 1991¹, on improving the efficiency of agricultural structures, as amended, and subject to subsections (3) and (3A), where a person to whom this section applies—

(i) has delivered to the Department of Agriculture, Food and Rural Development a farm nutrient management plan referred to in subsection (1)(b), and

(ii) incurs capital expenditure to which subsection (1) applies,

there shall be made to such person during the writing-down periods, specified in paragraph (b), writing-down allowances (in this section referred to as ‘farm pollution control allowances’) in respect of that expenditure and such allowances shall be made in taxing the trade.

(b) The writing-down periods referred to in paragraph (a) shall be—

(i) 8 years beginning with the chargeable period related to the capital expenditure, where that expenditure is incurred before 6 April 2000; or

(ii) 7 years beginning with the chargeable period related to the capital expenditure, where that expenditure is incurred on or after 6 April 2000,”,

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

“(a) as respects the first year of the writing-down period referred to in subsection (2)(b)(i), where the capital expenditure was incurred—

(i) before 6 April 1998, an amount equal to 50 per cent of that expenditure or £10,000, whichever is the lesser,

(ii) on or after 6 April 1998 and before 6 April 2000, an amount equal to 50 per cent of that expenditure or £15,000, whichever is the lesser,”,

and

(iii) by the insertion of the following subsections after subsection (3):

“(3A) The farm pollution control allowances to be made in accordance with subsection (2) during the writing-down period referred to in subsection (2)(b)(ii), in respect of capital expenditure incurred in a chargeable period, where that expenditure is incurred on or after 6 April 2000 shall, subject to subsection (3B), be an amount equal to—

(a) 15 per cent of that expenditure incurred for each of the first 6 years of the writing-down period, and

(b) 10 per cent of that expenditure for the last year of the writing-down period.

(3B)

(a) In this subsection—

‘residual amount’, in relation to capital expenditure incurred in a chargeable period, means an amount equal to 50 per cent of that expenditure or £25,000 whichever is the lesser;

‘specified amount’, in relation to capital expenditure incurred in a chargeable period, means the balance of that expenditure after deducting the residual amount;

‘specified return date for the chargeable period’ has the same meaning as in section 950.

(b) Notwithstanding subsection (3A), where farm pollution control allowances are to be made to a person in accordance with that subsection during the writing-down period referred to in subsection (2)(b)(ii), such person may elect to have those allowances made in accordance with this subsection and, where such person so elects, the allowances shall be made in accordance with this subsection only.

(c) Where paragraph (b) applies to a person, the farm pollution control allowances to be made to such person during the writing-down period referred to in subsection (2)(b)(ii) shall be an amount equal to—

(i) 15 per cent of the specified amount for each of the first 6 years of the writing-down period, and

(ii) 10 per cent of the specified amount for the last year of the writing-down period, and

(iii) subject to paragraph (d), the whole or any part of the residual amount, as is specified by the person to whom the allowances are to be made, in any year of the writing-down period.

(d) The allowances to be made in accordance with subparagraphs (i) and (iii) of paragraph (c) or subparagraphs (ii) and (iii) of that paragraph, as the case may be, for any year of the writing-down period, shall not in the aggregate exceed the residual amount.

(3C)

(a) An election by a person to whom this section applies in relation to the farm pollution control allowances claimed in subsection (3B) shall be made in writing on or before the specified return date for the chargeable period in which the expenditure is incurred and shall be included in the annual statement required to be delivered under the Income Tax Acts of the profits or gains from farming as set out in subsection (5).

(b) An election made under the provisions of paragraph (a) cannot be altered or varied during the writing-down period to which it refers.”.

61 Amendment of Part 23 (farming and market gardening) of Principal Act.

61.—The Principal Act is amended—

(a) in Part 1, by the substitution for paragraph (b) of the definition of “capital allowance” in section 2(1) of the following:

“(b) Part 23,”,

(b) in Part 23, by the insertion after Chapter 2 of the following:

“Chapter 3

Milk Quotas

Interpretation. 669A.—In this Chapter—

‘lessee’ has the same meaning as in Chapter 8 of Part 4;

‘levy’ means the levy referred to in Council Regulation (EEC) No. 3950 of 28 December 1992¹, as amended;

‘milk’ means the produce of the milking of one or more cows and ‘other milk products’ includes cream, butter and cheese;

‘milk quota’ means—

(a) the quantity of a milk or other milk products which may be supplied by a person carrying on farming, in the course of a trade of farming land occupied by such person to a purchaser in a milk quota year without that person being liable to pay a levy, or

(b) the quantity of a milk or other milk products which may be sold or transferred free for direct consumption by a person carrying on farming, in the course of a trade of farming land occupied by such person in a milk quota year without that person being liable to pay a levy;

‘milk quota restructuring scheme’ means a scheme introduced by the Minister for Agriculture, Food and Rural Development under the provisions of Article 8(b) of Council Regulation (EEC) No. 3950 of 28 December 1992, as amended;

‘milk quota year’ means a twelve month period beginning on 1 April and ending on the following 31 March;

‘purchaser’ has the meaning assigned to it under Council Regulation (EEC) No. 3950 of 28 December 1992;

‘qualifying expenditure’ means—

(a) in the case of milk quota to which paragraph (a) of the definition of ‘qualifying quota’ refers, the amount of the capital expenditure incurred on the purchase of that qualifying quota, and

(b) in the case of milk quota to which paragraph (b) of the definition of ‘qualifying quota’ refers, the lesser of—

(i) the amount of capital expenditure incurred on the purchase of that qualifying quota, or

(ii) the amount of capital expenditure which would have been incurred on the purchase of that qualifying quota if the price paid were the maximum price for the milk quota year in which the purchase took place as set by the Minister for Agriculture, Food and Rural Development for the purposes of a Milk Quota Restructuring Scheme;

‘qualifying quota’ means—

(a) a milk quota purchased by a person on or after 1 April 2000 under a Milk Quota Restructuring Scheme, or

(b) a milk quota purchased by a lessee who entered into a lease agreement with a lessor who is not a person connected (within the meaning of section 10) with that lessee, in respect of that quota prior to 13 October 1999 and which ends on or after 31 March 2000 and which complies with the provisions of Council Regulation (EEC) No. 857-84\f\1\f\ of 31 March 1984 or Council Regulation (EEC) No. 3950 of 28 December 1992;

‘writing-down period’ has the meaning assigned to it by section 669B(2).

Annual allowances for capital expenditure on purchase of milk quota. 669B.—(1) Where, on or after 6 April 2000, a person incurs qualifying expenditure on the purchase of a qualifying quota, there shall, subject to and in accordance with this Chapter, be made to that person writing-down allowances during the writing-down period as specified in subsection (2); but no writing-down allowance shall be made to a person in respect of any qualifying expenditure unless the allowance is to be made to the person in taxing the person's trade of farming.

(2) The writing-down period referred to in subsection (1) shall be 7 years commencing with the beginning of the chargeable period related to the qualifying expenditure.

(3) The writing-down allowances to be made during the writing-down period referred to in subsection (2) in respect of qualifying expenditure shall be determined by the formula—

A x B

A x C

where—

A is the amount of the capital expenditure incurred on the purchase of the milk quota,

B is the length of the part of the chargeable period falling within the writing-down period, and

C is the length of the writing-down period.

Effect of sale of quota. 669C.—(1) Where a person incurs qualifying expenditure on the purchase of a qualifying quota and, before the end of the writing-down period, any of the following events occurs—

(a) the person sells the qualifying quota or so much of the quota as the person still owns;

(b) the qualifying quota comes to an end or ceases altogether to be used;

(c) the person sells part of the qualifying quota and the net proceeds of the sale (in so far as they consist of capital sums) are not less than the amount of the qualifying expenditure remaining unallowed;

no writing-down allowance shall be made to that person for the chargeable period related to the event or any subsequent chargeable period.

(2) Where a person incurs qualifying expenditure on the purchase of a qualifying quota and, before the end of the writing-down period, either of the following events occurs—

(a) the qualifying quota comes to an end or ceases altogether to be used;

(b) the person sells all of the qualifying quota or so much of that quota as the person still owns, and the net proceeds of the sale (in so far as they consist of capital sums) are less than the amount of the qualifying expenditure remaining unallowed;

there shall, subject to and in accordance with this Chapter, be made to that person for the accounting period related to the event an allowance (in this Chapter referred to as a ‘balancing allowance’) equal to—

(i) if the event is the qualifying quota coming to an end or ceasing altogether to be used, the amount of the qualifying expenditure remaining unallowed, and

(ii) if the event is a sale, the amount of the qualifying expenditure remaining unallowed less the net proceeds of the sale.

(3) Where a person who has incurred qualifying expenditure on the purchase of a qualifying quota sells all or any part of that quota and the net proceeds of the sale (in so far as they consist of capital sums) exceed the amount of the qualifying expenditure remaining unallowed, if any, there shall, subject to and in accordance with this Chapter, be made on that person for the chargeable period related to the sale a charge (in this Chapter referred to as a ‘balancing charge’) on an amount equal to—

(a) the excess, or

(b) where the amount of the qualifying expenditure remaining unallowed is nil, the net proceeds of the sale.

(4) Where a person who has incurred qualifying expenditure on the purchase of a qualifying quota sells a part of that quota and subsection (3) does not apply, the amount of any writing-down allowance made in respect of that expenditure for the chargeable period related to the sale or any subsequent chargeable period shall be the amount determined by—

(a) subtracting the net proceeds of the sale (in so far as they consist of capital sums) from the amount of the expenditure remaining unallowed at the time of the sale, and

(b) dividing the result by the number of complete years of the writing-down period which remained at the beginning of the chargeable period related to the sale,

and so on for any subsequent sales.

(5) References in this section to the amount of any qualifying expenditure remaining unallowed shall in relation to any event be construed as references to the amount of that expenditure less any writing-down allowances made in respect of that expenditure for chargeable periods before the chargeable period related to that event, and less also the net proceeds of any previous sale by the person who incurred the expenditure of any part of the qualifying quota acquired by the expenditure, in so far as those proceeds consist of capital sums.

(6) Notwithstanding subsections (1) to (5)—

(a) no balancing allowance shall be made in respect of any expenditure unless a writing-down allowance has been, or, but for the happening of the event giving rise to the balancing allowance, could have been, made in respect of that expenditure, and

(b) the total amount on which a balancing charge is made in respect of any expenditure shall not exceed the total writing-down allowances actually made in respect of that expenditure less, if a balancing charge has previously been made in respect of that expenditure, the amount on which that charge was made.

Manner of making allowances and charges. 669D.—An allowance or charge under this Chapter shall be made to or on a person in taxing the profits or gains from farming but only if at any time in the chargeable period or its basis period the qualifying quota in question was used for the purposes of that trade.

Application of Chapter 4 of Part 9. 669E.—(1) Subject to subsection (2), Chapter 4 of Part 9 shall apply as if this Chapter were contained in that Part.

(2) In Chapter 4 of Part 9, as applied by virtue of subsection (1) to a qualifying quota, the reference in section 312(5)(a)(i) to the sum mentioned in paragraph (b) shall in the case of a qualifying quota be construed as a reference to the amount of the qualifying expenditure on the acquisition of the qualifying quota remaining unallowed, computed in accordance with section 669C.

Commencement (Chapter 3). 669F.—This Chapter shall come into operation on such day as the Minister for Finance, with the consent of the Minister for Agriculture, Food and Rural Development, may, by order, appoint.”.


Interpretation.	669A.—In this Chapter—
	‘lessee’ has the same meaning as in Chapter 8 of Part 4;
	‘levy’ means the levy referred to in Council Regulation (EEC) No. 3950 of 28 December 1992¹, as amended;
	‘milk’ means the produce of the milking of one or more cows and ‘other milk products’ includes cream, butter and cheese;
	‘milk quota’ means—
	(a) the quantity of a milk or other milk products which may be supplied by a person carrying on farming, in the course of a trade of farming land occupied by such person to a purchaser in a milk quota year without that person being liable to pay a levy, or
	(b) the quantity of a milk or other milk products which may be sold or transferred free for direct consumption by a person carrying on farming, in the course of a trade of farming land occupied by such person in a milk quota year without that person being liable to pay a levy;
	‘milk quota restructuring scheme’ means a scheme introduced by the Minister for Agriculture, Food and Rural Development under the provisions of Article 8(b) of Council Regulation (EEC) No. 3950 of 28 December 1992, as amended;
	‘milk quota year’ means a twelve month period beginning on 1 April and ending on the following 31 March;
	‘purchaser’ has the meaning assigned to it under Council Regulation (EEC) No. 3950 of 28 December 1992;
	‘qualifying expenditure’ means—
	(a) in the case of milk quota to which paragraph (a) of the definition of ‘qualifying quota’ refers, the amount of the capital expenditure incurred on the purchase of that qualifying quota, and
	(b) in the case of milk quota to which paragraph (b) of the definition of ‘qualifying quota’ refers, the lesser of—
	(i) the amount of capital expenditure incurred on the purchase of that qualifying quota, or
	(ii) the amount of capital expenditure which would have been incurred on the purchase of that qualifying quota if the price paid were the maximum price for the milk quota year in which the purchase took place as set by the Minister for Agriculture, Food and Rural Development for the purposes of a Milk Quota Restructuring Scheme;
	‘qualifying quota’ means—
	(a) a milk quota purchased by a person on or after 1 April 2000 under a Milk Quota Restructuring Scheme, or
	(b) a milk quota purchased by a lessee who entered into a lease agreement with a lessor who is not a person connected (within the meaning of section 10) with that lessee, in respect of that quota prior to 13 October 1999 and which ends on or after 31 March 2000 and which complies with the provisions of Council Regulation (EEC) No. 857-84\f\1\f\ of 31 March 1984 or Council Regulation (EEC) No. 3950 of 28 December 1992;
	‘writing-down period’ has the meaning assigned to it by section 669B(2).
Annual allowances for capital expenditure on purchase of milk quota.	669B.—(1) Where, on or after 6 April 2000, a person incurs qualifying expenditure on the purchase of a qualifying quota, there shall, subject to and in accordance with this Chapter, be made to that person writing-down allowances during the writing-down period as specified in subsection (2); but no writing-down allowance shall be made to a person in respect of any qualifying expenditure unless the allowance is to be made to the person in taxing the person's trade of farming.
	(2) The writing-down period referred to in subsection (1) shall be 7 years commencing with the beginning of the chargeable period related to the qualifying expenditure.
	(3) The writing-down allowances to be made during the writing-down period referred to in subsection (2) in respect of qualifying expenditure shall be determined by the formula—


	A x	B
	A x	C


	where—
	A is the amount of the capital expenditure incurred on the purchase of the milk quota,
	B is the length of the part of the chargeable period falling within the writing-down period, and
	C is the length of the writing-down period.
Effect of sale of quota.	669C.—(1) Where a person incurs qualifying expenditure on the purchase of a qualifying quota and, before the end of the writing-down period, any of the following events occurs—
	(a) the person sells the qualifying quota or so much of the quota as the person still owns;
	(b) the qualifying quota comes to an end or ceases altogether to be used;
	(c) the person sells part of the qualifying quota and the net proceeds of the sale (in so far as they consist of capital sums) are not less than the amount of the qualifying expenditure remaining unallowed;
	no writing-down allowance shall be made to that person for the chargeable period related to the event or any subsequent chargeable period.
	(2) Where a person incurs qualifying expenditure on the purchase of a qualifying quota and, before the end of the writing-down period, either of the following events occurs—
	(a) the qualifying quota comes to an end or ceases altogether to be used;
	(b) the person sells all of the qualifying quota or so much of that quota as the person still owns, and the net proceeds of the sale (in so far as they consist of capital sums) are less than the amount of the qualifying expenditure remaining unallowed;
	there shall, subject to and in accordance with this Chapter, be made to that person for the accounting period related to the event an allowance (in this Chapter referred to as a ‘balancing allowance’) equal to—
	(i) if the event is the qualifying quota coming to an end or ceasing altogether to be used, the amount of the qualifying expenditure remaining unallowed, and
	(ii) if the event is a sale, the amount of the qualifying expenditure remaining unallowed less the net proceeds of the sale.
	(3) Where a person who has incurred qualifying expenditure on the purchase of a qualifying quota sells all or any part of that quota and the net proceeds of the sale (in so far as they consist of capital sums) exceed the amount of the qualifying expenditure remaining unallowed, if any, there shall, subject to and in accordance with this Chapter, be made on that person for the chargeable period related to the sale a charge (in this Chapter referred to as a ‘balancing charge’) on an amount equal to—
	(a) the excess, or
	(b) where the amount of the qualifying expenditure remaining unallowed is nil, the net proceeds of the sale.
	(4) Where a person who has incurred qualifying expenditure on the purchase of a qualifying quota sells a part of that quota and subsection (3) does not apply, the amount of any writing-down allowance made in respect of that expenditure for the chargeable period related to the sale or any subsequent chargeable period shall be the amount determined by—
	(a) subtracting the net proceeds of the sale (in so far as they consist of capital sums) from the amount of the expenditure remaining unallowed at the time of the sale, and
	(b) dividing the result by the number of complete years of the writing-down period which remained at the beginning of the chargeable period related to the sale,
	and so on for any subsequent sales.
	(5) References in this section to the amount of any qualifying expenditure remaining unallowed shall in relation to any event be construed as references to the amount of that expenditure less any writing-down allowances made in respect of that expenditure for chargeable periods before the chargeable period related to that event, and less also the net proceeds of any previous sale by the person who incurred the expenditure of any part of the qualifying quota acquired by the expenditure, in so far as those proceeds consist of capital sums.
	(6) Notwithstanding subsections (1) to (5)—
	(a) no balancing allowance shall be made in respect of any expenditure unless a writing-down allowance has been, or, but for the happening of the event giving rise to the balancing allowance, could have been, made in respect of that expenditure, and
	(b) the total amount on which a balancing charge is made in respect of any expenditure shall not exceed the total writing-down allowances actually made in respect of that expenditure less, if a balancing charge has previously been made in respect of that expenditure, the amount on which that charge was made.
Manner of making allowances and charges.	669D.—An allowance or charge under this Chapter shall be made to or on a person in taxing the profits or gains from farming but only if at any time in the chargeable period or its basis period the qualifying quota in question was used for the purposes of that trade.
Application of Chapter 4 of Part 9.	669E.—(1) Subject to subsection (2), Chapter 4 of Part 9 shall apply as if this Chapter were contained in that Part.
	(2) In Chapter 4 of Part 9, as applied by virtue of subsection (1) to a qualifying quota, the reference in section 312(5)(a)(i) to the sum mentioned in paragraph (b) shall in the case of a qualifying quota be construed as a reference to the amount of the qualifying expenditure on the acquisition of the qualifying quota remaining unallowed, computed in accordance with section 669C.
Commencement (Chapter 3).	669F.—This Chapter shall come into operation on such day as the Minister for Finance, with the consent of the Minister for Agriculture, Food and Rural Development, may, by order, appoint.”.

62 Amendment of section 723 (special investment policies) of Principal Act.

62.—The Principal Act is amended in section 723 by the substitution in subsection (1) for the definition of “special investment policy” of the following definition:

“ ‘special investment policy’ means a policy of life assurance issued by an assurance company to an individual on or after 1 February 1993 and before 1 January 2001, in respect of which—

(a) the conditions specified in subsection (3) are satisfied, and

(b) a declaration of the kind specified in subsection (4) has been made to the assurance company;”.

63 Amendment of section 843A (capital allowances for buildings used for certain childcare purposes) of Principal Act.

63.—(1) Section 843A of the Principal Act is amended—

(a) in subsection (1)—

(i) by the insertion of the following definition after the definition of ‘pre-school child’ and ‘pre-school service’:

“ ‘property developer’ means a person carrying on a trade which consists wholly or mainly of the construction or refurbishment of buildings or structures with a view to their sale;”,

and

(ii) by the substitution of the following definition for “qualifying expenditure”—

“ ‘qualifying expenditure’ means capital expenditure incurred on the construction, conversion or refurbishment of a qualifying premises;”,

(b) in subsection (3) by the insertion after “qualifying expenditure” of “incurred on or after 2 December 1998”,

“(3A) For the purposes of the application, by subsection (2), of sections 271 and 273 in relation to qualifying expenditure incurred on or after 1 December 1999 on a qualifying premises—

(a) section 271 shall apply—

(i) as if in subsection (1) of that section the definition of ‘industrial development agency’ were deleted,

(ii) as if in subsection (2)(a)(i) of that section ‘to which subsection (3) applies’ were deleted,

(iii) as if subsection (3) of that section were deleted,

(iv) as if the following subsection were substituted for subsection (4) of that section:

‘(4) An industrial building allowance shall be an amount equal to 100 per cent of the capital expenditure mentioned in subsection (2).’,

and

(v) as if subsection (5) of that section were deleted,

and

(b) section 273 shall apply—

(i) as if in subsection (1) of that section the definition of ‘industrial development agency’ were deleted, and

(ii) as if subsections (2)(b) and (3) to (7) of that section were deleted.”,

(d) by the insertion of the following subsection after subsection (4):

“(5) Subsections (3) and (3A) shall not apply in respect of qualifying expenditure incurred on a qualifying premises on or after 1 December 1999—

(a) where a property developer is entitled to the relevant interest, within the meaning of section 269, in that qualifying premises, and

(b) either the person referred to in paragraph (a) or a person connected (within the meaning of section 10) with that person incurred the qualifying expenditure on that qualifying premises.”.

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

64 Amendment of Part 29 (patents, scientific and certain other research, know-how and certain training) of Principal Act.

64.—The Principal Act is amended in Part 29 by the insertion after Chapter 3 of the following:

“Chapter 4

Transmission Capacity Rights

Interpretation (Chapter 4). 769A.—(1) In this Chapter—

‘capacity rights’ means the right to use wired, radio or optical transmission paths for the transfer of voice, data or information:

‘writing-down period’ has the meaning assigned to it by section 769B(2).

(2) In this Chapter, any reference to the sale of part of capacity rights includes a reference to the grant of a licence in respect of the capacity rights in question, and any reference to the purchase of capacity rights includes a reference to the acquisition of a licence in respect of capacity rights; but, if a licence granted by a company entitled to any capacity rights is a licence to exercise those rights to the exclusion of the grantor and all other persons for the whole of the remainder of the term for which the rights subsist, the grantor shall be treated for the purposes of this Chapter as thereby selling the whole of the rights.

Annual allowances for capital expenditure on purchase of capacity rights. 769B.—(1) Where, on or after 1 April 2000, a company incurs capital expenditure on the purchase of capacity rights, there shall, subject to and in accordance with this Chapter, be made to that company writing-down allowances, in respect of that expenditure during the writing-down period; but no writing-down allowance shall be made to a company in respect of any expenditure unless—

(a) the allowance is to be made to the company in taxing the company's trade, or

(b) any income receivable by the company in respect of the rights would be liable to tax.

(2) (a) Subject to paragraph (c), the writing-down period shall be—

(i) a period of 7 years, or

(ii) where the capacity rights are purchased for a specified period which exceeds 7 years, the number of years for which the capacity rights are purchased,

commencing with the beginning of the accounting period related to the expenditure.

(b) For the purposes of this section, writing-down allowances shall be determined by the formula—

A x B

A x C

where—

A is the amount of the capital expenditure incurred on the purchase of the capacity rights,

B is the length of the part of the chargeable period falling within the writing-down period, and

C is the length of the writing-down period.

(c) For the purposes of this subsection, any expenditure incurred for the purposes of a trade by a company about to carry on the trade shall be treated as if that expenditure had been incurred by that company on the first day on which that company carries on the trade unless before that day the company has sold all the capacity rights on the purchase of which the expenditure was incurred.

Effect of lapse of capacity rights. 769C.—(1) Where a company incurs capital expenditure on the purchase of capacity rights and, before the end of the writing-down period, any of the following events occurs—

(a) the rights come to an end without provision for their subsequent renewal or the rights cease altogether to be exercised;

(b) the company sells all those rights or so much of them as it still owns;

(c) the company sells part of those rights and the amount of net proceeds of the sale (in so far as they consist of capital sums) are not less than the amount of the capital expenditure remaining unallowed;

no writing-down allowance shall be made to that company for the chargeable period related to the event or for any subsequent chargeable period.

(2) Where a company incurs capital expenditure on the purchase of capacity rights and, before the end of the writing-down period, either of the following events occurs—

(a) the rights come to an end without provision for their subsequent renewal or the rights cease altogether to be exercised;

(b) the company sells all those rights or so much of them as it still owns, and the amount of the net proceeds of the sale (in so far as they consist of capital sums) are less than the amount of the capital expenditure remaining unallowed;

there shall, subject to and in accordance with this Chapter, be made to that company for the accounting period related to the event an allowance (in this Chapter referred to as a ‘balancing allowance’) equal to—

(i) if the event is one referred to in paragraph (a), the amount of the capital expenditure remaining unallowed, and

(ii) if the event is one referred to in paragraph (b), the amount of the capital expenditure remaining unallowed less the amount of the net proceeds of the sale.

(3) Where a company which has incurred capital expenditure on the purchase of capacity rights sells all or any part of those rights and the amount of the net proceeds of the sale (in so far as they consist of capital sums) exceeds the amount of the capital expenditure remaining unallowed, if any, there shall, subject to and in accordance with this Chapter, be made on that company for the chargeable period related to the sale a charge (in this Chapter referred to as a ‘balancing charge’) on an amount equal to—

(a) the excess, or

(b) where the amount of the capital expenditure remaining unallowed is nil, the amount of the net proceeds of the sale.

(4) Where a company which has incurred capital expenditure on the purchase of capacity rights sells a part of those rights and subsection (3) does not apply, the amount of any writing-down allowance made in respect of that expenditure for the chargeable period related to the sale or any subsequent chargeable period shall be the amount determined by—

(a) subtracting the amount of the net proceeds of the sale (in so far as they consist of capital sums) from the amount of the expenditure remaining unallowed at the time of the sale, and

(b) dividing the result by the number of complete years of the writing-down period which remained at the beginning of the chargeable period related to the sale,

and so on for any subsequent sales.

(5) References in this section to the amount of any capital expenditure remaining unallowed shall in relation to any event aforesaid be construed as references to the amount of that expenditure less any writing-down allowances made in respect of that expenditure for chargeable periods before the chargeable period related to that event, and less also the amount of the net proceeds of any previous sale by the company which incurred the expenditure of any part of the rights acquired by the expenditure, in so far as those proceeds consist of capital sums.

(6) Notwithstanding subsections (1) to (5)—

(a) no balancing allowance shall be made in respect of any expenditure unless a writing-down allowance has been, or, but for the happening of the event giving rise to the balancing allowance, could have been, made in respect of that expenditure, and

(b) the total amount on which a balancing charge is made in respect of any expenditure shall not exceed the total writing-down allowances actually made in respect of that expenditure less, if a balancing charge has previously been made in respect of that expenditure, the amount on which that charge was made.

Manner of making allowances and charges. 769D.—(1) An allowance or charge under this Chapter shall be made to or on a company in taxing the company's trade if—

(a) the company is carrying on a trade the profits or gains of which are or, if there were any, would be, chargeable to corporation tax for the chargeable period for which the allowance or charge is made, and

(b) at any time in the chargeable period or its basis period the capacity rights in question, or other rights out of which they were granted, were used for the purposes of that trade.

(2) Except where provided for in subsection (1), an allowance under this Chapter shall be made by means of discharge or repayment of tax and shall be available against income from capacity rights, and a charge under this Chapter shall be made under Case IV of Schedule D.

Application of Chapter 4 of Part 9. 769E.—(1) Subject to subsection (2), Chapter 4 of Part 9 shall apply as if this Chapter were contained in that Part, and any reference in the Tax Acts to any capital allowance to be given by means of discharge or repayment of tax and to be available or available primarily against a specified class of income shall include a reference to any capital allowance given in accordance with section 769D(2).

(2) In Chapter 4 of Part 9, as applied by virtue of subsection (1) to capacity rights, the reference in section 312(5)(a)(i) to the sum mentioned in paragraph (b) shall in the case of capacity rights be construed as a reference to the amount of the capital expenditure on the acquisition of the capacity rights remaining unallowed, computed in accordance with section 769C.

Commencement (Chapter 4). 769F.—This Chapter shall come into operation on such day as the Minister for Finance may, by order, appoint.”.


Interpretation (Chapter 4).	769A.—(1) In this Chapter—
	‘capacity rights’ means the right to use wired, radio or optical transmission paths for the transfer of voice, data or information:
	‘writing-down period’ has the meaning assigned to it by section 769B(2).
	(2) In this Chapter, any reference to the sale of part of capacity rights includes a reference to the grant of a licence in respect of the capacity rights in question, and any reference to the purchase of capacity rights includes a reference to the acquisition of a licence in respect of capacity rights; but, if a licence granted by a company entitled to any capacity rights is a licence to exercise those rights to the exclusion of the grantor and all other persons for the whole of the remainder of the term for which the rights subsist, the grantor shall be treated for the purposes of this Chapter as thereby selling the whole of the rights.
Annual allowances for capital expenditure on purchase of capacity rights.	769B.—(1) Where, on or after 1 April 2000, a company incurs capital expenditure on the purchase of capacity rights, there shall, subject to and in accordance with this Chapter, be made to that company writing-down allowances, in respect of that expenditure during the writing-down period; but no writing-down allowance shall be made to a company in respect of any expenditure unless—
	(a) the allowance is to be made to the company in taxing the company's trade, or
	(b) any income receivable by the company in respect of the rights would be liable to tax.
	(2) (a) Subject to paragraph (c), the writing-down period shall be—
	(i) a period of 7 years, or
	(ii) where the capacity rights are purchased for a specified period which exceeds 7 years, the number of years for which the capacity rights are purchased,
	commencing with the beginning of the accounting period related to the expenditure.
	(b) For the purposes of this section, writing-down allowances shall be determined by the formula—


	A x	B
	A x	C


	where—
	A is the amount of the capital expenditure incurred on the purchase of the capacity rights,
	B is the length of the part of the chargeable period falling within the writing-down period, and
	C is the length of the writing-down period.
	(c) For the purposes of this subsection, any expenditure incurred for the purposes of a trade by a company about to carry on the trade shall be treated as if that expenditure had been incurred by that company on the first day on which that company carries on the trade unless before that day the company has sold all the capacity rights on the purchase of which the expenditure was incurred.
Effect of lapse of capacity rights.	769C.—(1) Where a company incurs capital expenditure on the purchase of capacity rights and, before the end of the writing-down period, any of the following events occurs—
	(a) the rights come to an end without provision for their subsequent renewal or the rights cease altogether to be exercised;
	(b) the company sells all those rights or so much of them as it still owns;
	(c) the company sells part of those rights and the amount of net proceeds of the sale (in so far as they consist of capital sums) are not less than the amount of the capital expenditure remaining unallowed;
	no writing-down allowance shall be made to that company for the chargeable period related to the event or for any subsequent chargeable period.
	(2) Where a company incurs capital expenditure on the purchase of capacity rights and, before the end of the writing-down period, either of the following events occurs—
	(a) the rights come to an end without provision for their subsequent renewal or the rights cease altogether to be exercised;
	(b) the company sells all those rights or so much of them as it still owns, and the amount of the net proceeds of the sale (in so far as they consist of capital sums) are less than the amount of the capital expenditure remaining unallowed;
	there shall, subject to and in accordance with this Chapter, be made to that company for the accounting period related to the event an allowance (in this Chapter referred to as a ‘balancing allowance’) equal to—
	(i) if the event is one referred to in paragraph (a), the amount of the capital expenditure remaining unallowed, and
	(ii) if the event is one referred to in paragraph (b), the amount of the capital expenditure remaining unallowed less the amount of the net proceeds of the sale.
	(3) Where a company which has incurred capital expenditure on the purchase of capacity rights sells all or any part of those rights and the amount of the net proceeds of the sale (in so far as they consist of capital sums) exceeds the amount of the capital expenditure remaining unallowed, if any, there shall, subject to and in accordance with this Chapter, be made on that company for the chargeable period related to the sale a charge (in this Chapter referred to as a ‘balancing charge’) on an amount equal to—
	(a) the excess, or
	(b) where the amount of the capital expenditure remaining unallowed is nil, the amount of the net proceeds of the sale.
	(4) Where a company which has incurred capital expenditure on the purchase of capacity rights sells a part of those rights and subsection (3) does not apply, the amount of any writing-down allowance made in respect of that expenditure for the chargeable period related to the sale or any subsequent chargeable period shall be the amount determined by—
	(a) subtracting the amount of the net proceeds of the sale (in so far as they consist of capital sums) from the amount of the expenditure remaining unallowed at the time of the sale, and
	(b) dividing the result by the number of complete years of the writing-down period which remained at the beginning of the chargeable period related to the sale,
	and so on for any subsequent sales.
	(5) References in this section to the amount of any capital expenditure remaining unallowed shall in relation to any event aforesaid be construed as references to the amount of that expenditure less any writing-down allowances made in respect of that expenditure for chargeable periods before the chargeable period related to that event, and less also the amount of the net proceeds of any previous sale by the company which incurred the expenditure of any part of the rights acquired by the expenditure, in so far as those proceeds consist of capital sums.
	(6) Notwithstanding subsections (1) to (5)—
	(a) no balancing allowance shall be made in respect of any expenditure unless a writing-down allowance has been, or, but for the happening of the event giving rise to the balancing allowance, could have been, made in respect of that expenditure, and
	(b) the total amount on which a balancing charge is made in respect of any expenditure shall not exceed the total writing-down allowances actually made in respect of that expenditure less, if a balancing charge has previously been made in respect of that expenditure, the amount on which that charge was made.
Manner of making allowances and charges.	769D.—(1) An allowance or charge under this Chapter shall be made to or on a company in taxing the company's trade if—
	(a) the company is carrying on a trade the profits or gains of which are or, if there were any, would be, chargeable to corporation tax for the chargeable period for which the allowance or charge is made, and
	(b) at any time in the chargeable period or its basis period the capacity rights in question, or other rights out of which they were granted, were used for the purposes of that trade.
	(2) Except where provided for in subsection (1), an allowance under this Chapter shall be made by means of discharge or repayment of tax and shall be available against income from capacity rights, and a charge under this Chapter shall be made under Case IV of Schedule D.
Application of Chapter 4 of Part 9.	769E.—(1) Subject to subsection (2), Chapter 4 of Part 9 shall apply as if this Chapter were contained in that Part, and any reference in the Tax Acts to any capital allowance to be given by means of discharge or repayment of tax and to be available or available primarily against a specified class of income shall include a reference to any capital allowance given in accordance with section 769D(2).
	(2) In Chapter 4 of Part 9, as applied by virtue of subsection (1) to capacity rights, the reference in section 312(5)(a)(i) to the sum mentioned in paragraph (b) shall in the case of capacity rights be construed as a reference to the amount of the capital expenditure on the acquisition of the capacity rights remaining unallowed, computed in accordance with section 769C.
Commencement (Chapter 4).	769F.—This Chapter shall come into operation on such day as the Minister for Finance may, by order, appoint.”.

65 Amendment of section 243 (allowance of charges on income) of Principal Act.

65.—(1) Section 243(5) of the Principal Act is amended by the substitution for “except where the company has been authorised by the Revenue Commissioners to do otherwise, the company deducts income tax which it accounts for under sections 238 and 239, or under sections 238 and 241, as the case may be, or” of the following:

“except where—

(I) the company has been authorised by the Revenue Commissioners to do otherwise, or

(II) the interest is interest referred to in paragraph (b) or (h) of section 246(3),

the company deducts income tax which it accounts for under sections 238 and 239, or under sections 238 and 241, as the case may be, or”.

(2) This section shall apply as on and from 10 February 2000.

66 Amendment of section 246 (interest payments by companies and to non-residents) of Principal Act.

66.—(1) Section 246 of the Principal Act is amended—

(a) in subsection (1) by the substitution in the definition of “relevant territory” of “made;” for “made,” and by the insertion of the following definition after that definition:

“ ‘tax’, in relation to a relevant territory, means any tax imposed in such territory which corresponds to income tax or corporation tax in the State.”,

and

(b) in subsection (3)(h) by the substitution of “which, by virtue of the law of a relevant territory, is resident for the purposes of tax in the relevant territory,” for “resident in a relevant territory”.

(2) This section shall apply as on and from 10 February 2000.

67 Amendment of section 247 (relief to companies on loans applied in acquiring interest in other companies) of Principal Act.

67.—(1) Section 247 of the Principal Act is amended by the substitution of the following for subsection (5):

“(5) Interest eligible for relief under this section shall be deducted from or set off against the income (not being income referred to in subsection (2)(a) of section 25) of the borrower for the year of assessment in which the interest is paid and tax shall be discharged or repaid accordingly.

(6) Where relief is given under this section in respect of interest on a loan, no relief or deduction under any other provision of the Tax Acts shall be given or allowed in respect of interest on the loan.”.

(2) This section shall be deemed to have applied as on and from 6 April 1997.

68 Amendment of Chapter 4 (revenue powers) of Part 38 of Principal Act.

68.—The Principal Act is amended in Chapter 4 of Part 38—

(a) in section 904A (inserted by the Finance Act, 1999)—

(i) by the substitution for the definition of “authorised officer” of the following definitions:

“ ‘auditor’ means a person who is qualified, for the purposes of Part X of the Companies Act, 1990, for appointment as auditor of a company, or any other person whom the Revenue Commissioners consider suitable, having regard to his or her qualifications or experience, for appointment as an authorised officer;

‘authorised officer’ means—

(a) an officer of the Revenue Commissioners who is authorised by them in writing to exercise the powers conferred by this section, and

(b) an auditor who is authorised by the Revenue Commissioners in writing to exercise the powers conferred by this section in relation to an audit of the return of a named relevant deposit taker for a specified year or years of assessment;

‘associated company’, in relation to a relevant deposit taker, means a company which is itself a relevant deposit taker and which is the relevant deposit taker's associated company within the meaning of section 432;”,

and

(ii) by the substitution for subsections (6) and (7) of the following:

“(6) An authorised officer may require an associated company in relation to a relevant deposit taker or an employee of such an associated company to produce books, records or other documents and to furnish information, explanations and particulars and to give all assistance, which the authorised officer reasonably requires for the purposes of his or her audit and examination under subsections (2) and (3) and, as the case may be, enquiries under subsection (4).

(7) An authorised officer may make extracts from or copies of all or any part of the books, records or other documents or other material made available to him or her or require that copies of books, records, or other documents be made available to him or her, in exercising or performing his or her powers or duties under this section.

(8) An employee of a relevant deposit taker or of an associated company in relation to a relevant deposit taker, who fails to comply with the requirements of the authorised officer in the exercise or performance of the authorised officer's powers or duties under this section shall be liable to a penalty of £1,000.

(9) A relevant deposit taker or an associated company in relation to a relevant deposit taker which fails to comply with the requirements of the authorised officer in the exercise or performance of the authorised officer's powers or duties under this section shall be liable to a penalty of £15,000 and if that failure continues a further penalty of £2,000 for each day on which the failure continues.”,

(b) by the insertion after section 904A of the following sections:


“Report to Committee of Public Accounts: publication etc.	904B.—(1) In this section—
“Report to Committee of Public Accounts: publication etc.	‘appropriate tax’ and ‘relevant deposit taker’ have, respectively, the meanings assigned to them by section 256(1);
	‘authorised officer’ has the meaning assigned to it by section 904A.
	(2) Notwithstanding any obligation as to secrecy or other restriction upon disclosure of information imposed by or under statute or otherwise, the Revenue Commissioners—
	(a) shall, before 1 November 2000, make a report in writing to the Committee of Public Accounts of Dáil Éireann, and
	(b) may, at any time, cause to be made public a report, in such manner as they consider fit,
	of the results (including interim results) of any audit carried out by an authorised officer under section 904A during the period from 25 March 1999 to the date the report is made.
	(3) The report under subsection (2) shall be in respect of audits of relevant deposit takers for the years of assessment 1986-1987 to 1998-1999, and may specify, in respect of each such audit—
	(a) the name of the relevant deposit taker concerned,
	(b) the amount of additional appropriate tax payable by the relevant deposit taker as a result of the audit,
	(c) the amount of interest payable in respect of any such amount,
	(d) the amount of any fine or penalty imposed by a court on the relevant deposit taker under the Tax Acts, or accepted by the Revenue Commissioners in place of initiating proceedings for recovery of such fine or penalty,
	(e) whether an assessment has been made in respect of appropriate tax and, if so, whether the assessment has been appealed,
	(f) whether the audit has been completed as at the date of the report,
	(g) the amount of any payment on account of appropriate tax paid by the relevant deposit taker in anticipation of an audit being carried out or during the course of an audit, and
	(h) such further particulars as the Revenue Commissioners consider fit.
Power of inspection (returns and collection of appropriate tax): assurance companies.	904C.—(1) In this section—
Power of inspection (returns and collection of appropriate tax): assurance companies.	‘assurance company’ and ‘life business’ have, respectively, the meanings assigned to them in section 706;
	‘appropriate tax’ has the meaning assigned to it in section 730F;
	‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section;
	‘books, records or other documents includes—
	(a) any records used in the business of an assurance company whether—
	(i) comprised in bound volume, loose-leaf binders or other loose-leaf filing system, loose-leaf ledger sheets, pages, folios or cards, or
	(ii) kept on microfilm, magnetic tape or in any non-legible form (by use of electronics or otherwise) which is capable of being reproduced in a legible form, and
	(b) every electronic or other automatic means, if any, by which any such thing in non-legible form is so capable of being reproduced, and
	(c) documents in manuscript, documents which are typed, printed, stencilled or created by any other mechanical means or partly mechanical process in use from time to time and documents which are produced by any photographic or photostatic process, and
	(d) correspondence and records of other communications by, or on behalf of, policy-holders with the assurance company carrying on life business;
	‘chargeable event’, in relation to a life policy, has the meaning assigned to it by section 730C;
	‘declaration’ means a declaration referred to in section 730E;
	‘liability’, in relation to a person, means any liability in relation to tax to which the person is or may be, or may have been, subject, or the amount of such liability;
	‘life policy’ has the meaning assigned to it in section 730B;
	‘policyholder’ has the meaning assigned to it in section 730E;
	‘return’ means a return under section 730G;
	‘tax’ means any tax, duty, levy or charge under the care and management of the Revenue Commissioners.
	(2) An authorised officer may at all reasonable times enter any premises or place of business of an assurance company carrying on life business for the purposes of auditing for a financial year the returns made by the company of appropriate tax.
	(3) Without prejudice to the generality of subsection (2) the authorised officer may—
	(a) examine the procedures put in place by the assurance company for the purpose of ensuring compliance by the assurance company with its obligations under Chapter 5 of Part 26,
	(b) examine all or a sample of the declarations made to the assurance company,
	(c) examine a sample of life policies to determine whether—
	(i) the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate,
	(ii) the assurance company has on the happening of chargeable events in relation to each life policy, paid the correct amount of appropriate tax in connection with the chargeable events, and
	(iii) there is information in the assurance company's possession which can reasonably be taken to indicate that the assurance company incorrectly failed to pay appropriate tax in connection with a chargeable event.
	(4) Where an authorised officer in exercising or performing his or her powers and duties under this section has reason to believe that in respect of one or more life policies, the assurance company has incorrectly failed to pay appropriate tax in connection with a chargeable event, the authorised officer may make such further enquiries as are necessary to establish whether there is a liability in relation to any person.
	(5) An authorised officer may require an assurance company or an employee of the assurance company to produce books, records or other documents and to furnish information, explanations and particulars and to give all assistance, which the authorised officer reasonably requires for the purposes of his or her audit and examination under subsections (2) and (3), and, as the case may be, enquiries under subsection (4).
	(6) An authorised officer may make extracts from or copies of all or any part of the books, records or other documents or other material made available to him or her or require that copies of books, records or other documents be made available to him or her, in exercising or performing his or her powers or duties under this section.
	(7) An employee of an assurance company who fails to comply with the requirements of the authorised officer in the exercise or performance of the authorised officer's powers or duties under this section shall be liable to a penalty of £1,000.
	(8) An assurance company which fails to comply with the requirements of the authorised officer in the exercise or performance of the authorised officer's powers or duties under this section shall be liable to a penalty of £15,000 and if that failure continues a further penalty of £2,000 for each day on which the failure continues.
Power of inspection (returns and collection of appropriate tax): investment undertakings.	904D.—(1) In this section—
Power of inspection (returns and collection of appropriate tax): investment undertakings.	‘appropriate tax’ has the meaning assigned to it in section 739E;
	‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section;
	‘books, records or other documents’ includes—
	(a) any records used in the business of an investment undertaking whether—
	(i) comprised in bound volume, loose-leaf binders or other loose-leaf filing system, loose-leaf ledger sheets, pages, folios or cards, or
	(ii) kept on microfilm, magnetic tape or in any non-legible form (by use of electronics or otherwise) which is capable of being reproduced in a legible form, and
	(b) every electronic or other automatic means, if any, by which any such thing in non-legible form is so capable of being reproduced, and
	(c) documents in manuscript, documents which are typed, printed, stencilled or created by any other mechanical means or partly mechanical process in use from time to time and documents which are produced by any photographic or photostatic process, and
	(d) correspondence and records of other communications by, or on behalf of, unit holders with the investment undertaking;
	‘declaration’ means a declaration referred to in Schedule 2B;
	‘investment undertaking’ and ‘unit holder’ have, respectively, the meanings assigned to them by section 739B;
	‘liability’, in relation to a person, means any liability in relation to tax to which the person is or may be, or may have been, subject, or the amount of such liability;
	‘return’ means a return under section 739F;
	‘tax’ means any tax, duty, levy or charge under the care and management of the Revenue Commissioners.
	(2) An authorised officer may at all reasonable times enter any premises or place of business of an investment undertaking for the purposes of auditing for a financial year the returns made by the investment undertaking of appropriate tax.
	(3) Without prejudice to the generality of subsection (2) the authorised officer may—
	(a) examine the procedures put in place by the investment undertaking for the purpose of ensuring compliance by the investment undertaking with its obligations under Chapter 1A of Part 27,
	(b) examine all or a sample of the declarations made to the investment undertaking,
	(c) examine transactions in relation to a sample of unit holders to determine whether—
	(i) the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate,
	(ii) the investment undertaking has, on the happening of a chargeable event in relation to a unit holder, paid the correct amount of appropriate tax in connection with the chargeable event, and
	(iii) there is information in the investment undertaking’s possession which can reasonably be taken to indicate that the investment undertaking incorrectly failed to pay appropriate tax in connection with a chargeable event.
	(4) Where an authorised officer in exercising or performing his or her powers and duties under this section has reason to believe that in respect of one or more unit holders, the investment undertaking has incorrectly failed to pay appropriate tax in connection with a chargeable event, the authorised officer may make such further enquiries as are necessary to establish whether there is a liability in relation to any person. an employee of the investment undertaking to produce books, records or other documents and to furnish information, explanations and particulars and to give all assistance, which the authorised officer reasonably requires for the purposes of his or her audit and examination under subsections (2) and (3), and, as the case may be, enquiries under subsection (4).
	(5) An authorised officer may require an investment undertaking or
	(6) An authorised officer may make extracts from or copies of all or any part of the books, records or other documents or other material made available to him or her or require that copies of books, records or other documents be made available to him or her, in exercising or performing his or her powers or duties under this section.
	(7) An employee of an investment undertaking who fails to comply with the requirements of the authorised officer in the exercise or performance of the authorised officer’s powers or duties under this section shall be liable to a penalty of £1,000.
	(8) An investment undertaking which fails to comply with the requirements of the authorised officer in the exercise or performance of the authorised officer’s powers or duties under this section shall be liable to a penalty of £15,000 and if that failure continues a further penalty of £2,000 for each day on which the failure continues.”,

“ ‘financial institution’ means—

(a) a person who holds or has held a licence under section 9 of the Central Bank Act, 1971,

(b) a person referred to in section 7(4) of the Central Bank Act, 1971, or

(c) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations, 1992 (S.I. No. 395 of 1992)) which has been authorised by the Central Bank of Ireland to carry on business of a credit institution in accordance with the provisions of the supervisory enactments (within the meaning of those Regulations);”,

and

(d) in section 908A, by the substitution for subsection (2) of the following:

“(2)

(a) In this subsection ‘documentation’ includes information kept on microfilm, magnetic tape or in any non-legible form (by use of electronics or otherwise) which is capable of being reproduced in a permanent legible form.

(b) If, on application made by an authorised officer, with the consent in writing of a Revenue Commissioner, a judge is satisfied, on information given on oath by the authorised officer, that there are reasonable grounds for suspecting—

(i) that an offence which would result in serious prejudice to the proper assessment or collection of tax is being, has been or is about to be committed (having regard to the amount of a liability in relation to any person which might be evaded but for the detection of the relevant facts), and

(ii) that there is material in the possession of a financial institution specified in the application which is likely to be of substantial value (whether by itself or together with other material) to the investigation of the relevant facts,

the judge may make an order authorising the authorised officer to inspect and take copies of any entries in the books, records or other documents of the financial institution, or of any documentation associated with or relating to an entry in such books, records or other documents, for the purposes of investigation of the relevant facts.”.

69 Amendments and repeals consequential on abolition of tax credits.

69.—(1) The provisions of the Taxes Consolidation Act, 1997, referred to in Part 1 of Schedule 2 shall apply subject to the amendments specified in that Schedule.

(2) Every provision of the Taxes Consolidation Act, 1997, specified in column (1) of Part 2 of Schedule 2 to this Act is repealed to the extent specified in column (2) of that Schedule.

(3) This section shall apply—

(a) in the case of income tax, as on and from 6 April 1999, and

(b) in the case of corporation tax, as respects accounting periods commencing on or after that date.

70 Restrictions on the use by certain partnerships of losses, etc., and transitional arrangements concerning these restrictions.

70.—(1) Section 1013 of the Principal Act is amended—

(a) in subsection (1), by the substitution for paragraph (d) of the definition of “limited partner” of the following:

“(d) a person who carries on the trade as a general partner in a partnership otherwise than as an active partner;”,

(b) in subsection (2), by the substitution for subparagraph (III) of the following:

“(III) where the individual is a limited partner in relation to a trade by virtue of paragraph (d) of the definition of ‘limited partner’ and the relevant year of assessment is—

(A) in the case of such a partner where the activities of the trade include the activity of producing, distributing, or the holding of or of an interest in, films or video tapes or the activity of exploring for, or exploiting, oil or gas resources, the year of assessment 1997-1998 or any subsequent year of assessment, subject to subsection (2A), or

(B) in any other case, the year of assessment 1999-2000 or any subsequent year of assessment, subject to subsection (2B),

only against income consisting of profits or gains arising from the trade,”,

(d) by the insertion after subsection (2A) of the following:

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