FINANCE ACT, 2001

“no person—

• (I) other than a person who, while in such occupation, derives rent or payment in the nature of rent in consideration for the provision, on or after 6 April 2001, of furnished residential accommodation in part of the dwellinghouse or apartment concerned, or

• (II) other than by virtue of a title prior to that of the purchaser,

will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or of any part of it, during that period.”,

for “no person, other than by virtue of a title prior to that of the purchaser, will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or any part of it, during that period.”, and

• (ii) by the substitution in subsection (2) of “some person, other than a person referred to in clause (I) or (II) of subsection (1)(b)(ii)” for “some person, other than by virtue of a title prior to that of the purchaser”,

• (c) in section 92A—

• (i) by the substitution in subparagraph (ii) of subsection (2)(b) of the following:

“no person—

• (I) other than a person who, while in such occupation, derives rent or payment in the nature of rent in consideration for the provision, on or after 6 April 2001, of furnished residential accommodation in part of the dwellinghouse or apartment concerned, or

• (II) other than by virtue of a title prior to that of the purchaser,

will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or of any part of it, during that period.”,

for “no person, other than by virtue of a title prior to that of the purchaser, will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or any part of it, during that period.”, and

• (ii) by the substitution in subsection (3) of “some person, other than a person referred to in clause (I) or (II) of subsection (2)(b)(ii)” for “some person, other than by virtue of a title prior to that of the purchaser”,

and

• (d) in section 92B—

• (i) by the substitution in subparagraph (ii) of subsection (3)(b) of the following:

“no person—

• (I) other than a person who, while in such occupation, derives rent or payment in the nature of rent in consideration for the provision, on or after 6 April 2001, of furnished residential accommodation in part of the dwellinghouse or apartment concerned, or

• (II) other than by virtue of a title prior to that of the purchaser,

will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or of any part of it, during that period.”,

for “no person, other than by virtue of a title prior to that of the purchaser, will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or any part of it, during that period.”,

• (ii) by the substitution in subsection (4) of “some person, other than a person referred to in clause (I) or (II) of subsection (3)(b)(ii)” for “some person, other than by virtue of a title prior to that of the purchaser”,

• (iii) by the substitution in paragraph (a) of subsection (8)—

• (I) of “separation, a decree of divorce, a decree of nullity or a deed of separation” for “separation or a decree of divorce”, and

• (II) of “that decree or the execution of that deed of separation by both spouses to that marriage” for “that decree”,

• (iv) by the substitution in subparagraph (i) of subsection (8)(a) of “subparagraph (ii)” for “paragraph (b)”,

• (v) by the substitution in subparagraph (ii) of subsection (8)(a) of “the decree of the date of the execution of the deed of separation by both spouses to that marriage” for “the decree” in each place where it occurs, and

• (vi) by the substitution in paragraph (b) of subsection (8) in the definition of “decree of judicial separation” of “the State;” for “the State.” and by the insertion of the following after that definition:

“‘decree of nullity’ means a decree granted by the High Court declaring a marriage to be null and void or any decree to like effect that was granted under the law of a country or judisdiction other than the State and is recognised in the State.”.

• (2)
• (a) Paragraphs (a)(i), (a)(ii), (b)(i), (b)(ii), (c)(i), (c)(ii), (d)(i), and (d)(ii) of subsection (1) shall apply and have effect in relation to instruments executed on or after 6 December 2000.

• (b) Paragraph (d)(iii), (v) and (vi) of subsection (1) shall apply and have effect in relation to instruments executed on or after 15 June 2000.

• (c) Paragraph (d)(iv) of subsection (1) shall apply and have effect in relation to instruments executed on or after 15 February 2001.

209 Amendment of Chapter 2 of Part 7 of Principal Act.

209.—(1) Chapter 2 of Part 7 of the Principal Act is amended by the insertion of the following section after section 92B:

“Residential property investor relief.

92C.—(1) The amount of stamp duty chargeable under or by reference to paragraphs (1) to (6) of the heading ‘CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance’ or clauses (i) to (vi) of paragraph (3)(a) of the heading ‘LEASE’, as the case may be, in Schedule 1 on any instrument to which this section applies shall be reduced where— (a) paragraph (1) or (2) or clause (i) or (ii) applies, to an amount equal to three-ninths, (b) paragraph (3) or clause (iii) applies, to an amount equal to four-ninths, (c) paragraph (4) or clause (iv) applies, to an amount equal to five-ninths, (d) paragraph (5) or clause (v) applies, to an amount equal to six-ninths, (e) paragraph (6) or clause (vi) applies, to an amount equal to seven and one half-ninths, of the amount which would otherwise have been chargeable but where the amount so obtained is a fraction of £1 that amount shall be rounded up to the nearest £. (2) This section shall apply to any instrument which contains a statement, in such form as the Commissioners may specify, certifying that the instrument— (a) is one to which section 29 or 53 applies, or (b) gives effect to the purchase of a dwellinghouse or apartment on the erection of that dwellinghouse or apartment and that section 29 or 53 do not apply.”.

• (2) Subsection (1) shall have effect as respects instruments executed on or after 27 February 2001 subject to the substitution in subsection (1) of section 92C (inserted by subsection (1)) of “down to nearest €” for “up to the nearest £”, for instruments executed on or after 1 January 2002.

210 Approved voluntary body.

210.—(1) The Principal Act is amended by the insertion of the following section after section 93:

“93A.—(1) Stamp duty shall not be chargeable on any conveyance, transfer or lease of land to a voluntary body, approved by the Minister for the Environment and Local Government under section 6 of the Housing (Miscellaneous Provisions) Act, 1992, for the purposes of the Housing Acts, 1966 to 1998.”.

• (2) Subsection (1) shall apply and have effect in relation to instruments executed on or after 15 February 2001.

211 National Building Agency Limited.

211.—(1) The Principal Act is amended by the insertion of the following section after section 106:

“106A.—(1) Stamp duty shall not be chargeable on any conveyance, transfer or lease of land to the National Building Agency Limited for the purposes of the Housing Acts, 1966 to 1998.”.

• (2) Subsection (1) shall apply and have effect in relation to instruments executed on or after 26 January 2001.

212 Certain policies of insurance.

212.—(1) The Principal Act is amended by the insertion of the following section after section 110:

“110A.—(1) This section shall apply to a policy of insurance, being insurance of a class specified in Part A of Annex I to the European Communities (Life Assurance) Framework Regulations, 1994 (S.I. No. 360 of 1994), which—

• (a) provides for periodic payments to an individual in the event of loss or diminution of income in consequence of ill health, or

• (b) provides for the payment of an amount or amounts to an individual in consequence of ill health, disability, accident or hospitalisation.

• (2) Stamp duty shall not be chargeable under or by reference to the Heading ‘POLICY OF INSURANCE other than Life Insurance where the risk to which the policy relates is located in the State.’ in Schedule 1 on any policy of insurance to which this section applies.”.

• (2) Subsection (1) shall apply and have effect in relation to instruments executed on or after 1 January 2001.

213 Amendment of Schedule 1 to Principal Act.

213.—(1) Schedule 1 to the Principal Act is amended—

• (a) by the substitution under the Heading “MORTGAGE, BOND, DEBENTURE, CONVENANT (except a marketable security) which is a security for the payment or repayment of money which is a charge or incumbrance on property situated in the State other than shares in stocks or funds of the Government or the Oireachtas.” of “£200,000” for “£20,000” in each place where it occurs,

• (b) by the substitution of “€254,000” for “£200,000” (inserted by paragraph (a)) in each place where it occurs, and

• (c) by the deletion of the Heading “POLICY OF LIFE INSURANCE made for a period exceeding 2 years where the risk to which the policy relates is located in the State.” and the provision under that Heading.

• (2)
• (a) Subsection (1)(a) shall apply and have effect in relation to instruments executed on or after 26 January 2001.

• (b) Subsection (1)(b) shall apply and have effect in relation to instruments executed on or after 1 January 2002.

• (c) Subsection (1)(c) shall apply and have effect in relation to instruments executed and policies of life insurance varied on or after 1 January 2001.

214 Amendment of section 2 (commencement (Part 1)) of Finance (No. 2) Act, 2000.

214.—Section 2 of the Finance (No. 2) Act, 2000, is amended in subsection (2) by the substitution of “31 July 2001” for “31 January 2001”.

PART 6 Capital Acquisitions Tax

215 Interpretation (Part 6).

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

216 Amendment of section 18 (taxable value of a taxable gift or taxable inheritance) of Principal Act.

216.—(1) Section 18 of the Principal Act is amended in subsection (5)(f) by the substitution of “section 6(1)(d) or 12(1)(c)” for “section 6(1)(c) or section 12(1)(b)”.

• (2) Subject to subsection (3), this section shall have effect in relation to gifts or inheritances taken on or after 1 December 1999.

• (3) Notwithstanding subsection (2), this section shall not have effect in relation to gifts or inheritances taken under a disposition where the date of the disposition is before 1 December 1999.

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

217.—(1) Section 19 of the Principal Act is amended by the substitution in subparagraph (ii) of subsection (5)(a) of “or within 4 years of the compulsory acquisition” for “or compulsory acquisition”.

• (2) Subsection (1) shall have effect in relation to compulsory acquisitions made on or after 6 December 2000.

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

218.—(1) Section 55 of the Principal Act is amended by the insertion of the following subsection after subsection (4):

• “(5) Any work of art normally kept outside the State which is comprised in an inheritance which is charged to tax by virtue of section 12(1)(c) shall be exempt from tax to the extent that the Comtaken into account in computing tax, to the extent that the Commissioners are satisfied that it was brought into the State solely for public exhibition, cleaning or restoration.”.

• (2) This section shall have effect in relation to inheritances taken on or after 26 January 2001.

219 Amendment of section 57 (exemption of certain securities) of Principal Act.

219.—(1) Section 57 of the Principal Act is amended by the substitution in subsection (2) of the following for paragraph (a):

• (a) the securities or units were comprised in the disposition continuously for a period of six years immediately before the date of the gift or the date of the inheritance, and any period immediately before the date of the disposition during which the securities or units were continuously in the beneficial ownership of the disponer shall be deemed, for the purpose of this paragraph, to be a period or part of a period immediately before the date of the gift or the date of the inheritance during which they were continuously comprised in the disposition;”.

• (2) This section shall have effect in relation to securities or units comprised in a gift or an inheritance where the date of the gift or the date of the inheritance is on or after 15 February 2001 and the securities or units—

• (a) come into the beneficial ownership of the disponer on or after 15 February 2001, or

• (b) become subject to the disposition on or after that date without having been previously in the beneficial ownership of the disponer.

220 Amendment of section 59C (exemption relating to certain dwellings) of Principal Act.

220.—(1) Section 59C of the Principal Act is amended by the insertion of the following after subsection (1):

• “(1A) In this section any reference to a donee or successor shall be construed as including a reference to the transferee referred to in section 23(1).”.

• (2) This section shall have effect in relation to a gift or inheritance taken on or after 1 December 1999.

221 Gifts and inheritances taken by foster children.

221.—The Principal Act is amended by the insertion of the following section after section 59C:

“59D.—(1) In this section—

‘the appropriate period’ means periods which together comprised at least 5 years falling within the 18 years immediately following the birth of the donee or successor.

• (2) Where, on a claim being made to them in that behalf in relation to a gift or inheritance taken on or after 6 December 2000, the Commissioners are, subject to subsection (3), satisfied—

  • (a) where the inheritance is taken by a successor on the date of death of the disponer, that the successor had, prior to the date of the inheritance, been placed in the foster care of the disponer under the Child Care (Placement of Children in Foster Care) Regulations, 1995 (S.I. No. 260 of 1995), or the Child Care (Placement of Children with Relatives) Regulations, 1995 (S.I. No. 261 of 1995), or

  • (b) that throughout the appropriate period the donee or successor—

    • (i) has resided with the disponer, and

    • (ii) was under the care of and maintained by the disponer at the disponer's own expense,

    then, subject to subsection (3), for the purpose of computing the tax payable on that gift or inheritance, that donee or successor shall be deemed to bear to that disponer the relationship of a child.

• (3) Relief under subsection (2) shall not apply where the claim for such relief is based on the uncorroborated testimony of one witness.”.

222 Gifts and inheritances taken by adopted children from natural parent.

222.—The Principal Act is amended by the insertion of the following section after section 59D (inserted by the Finance Act, 2001):

“59E.—Where, on a claim being made to them in that behalf in relation to a gift or inheritance taken on or after the date of the passing of the Finance Act, 2001, the Commissioners are satisfied that—

• (a) the donee or successor had at the date of the gift or the date of the inheritance been adopted in the manner referred to in paragraph (b) of the definition of ‘child’ contained in section 2(1), and

• (b) the disponer is the natural mother or the natural father of the donee or successor,

then, notwithstanding section 2(5)(a), for the purpose of computing the tax payable on that gift or inheritance, that donee or successor shall be deemed to bear to that disponer the relationship of a child.”.

223 Amendment of section 61 (payment of money standing in names of two or more persons) of Principal Act.

223.—Section 61 of the Principal Act is amended in subsection (1)—

• (a) as respects persons dying on or after 26 January 2001 and prior to 1 January 2002, by the substitution of “£25,000” for “£5,000”, and

• (b) as respects persons dying on or after 1 January 2002, by the substitution of “€31,750” for “£5,000”.

224 Amendment of section 85 (exemption of specified collective investment undertakings) of Finance Act, 1989.

224.—(1) Section 85 of the Finance Act, 1989, is amended by the substitution of the following for subsections (1) and (2):

• “(1) In this section—

‘investment undertaking’ has the meaning assigned to it by section 739B of the Taxes Consolidation Act, 1997;

‘specified collective investment undertaking’ has the meaning assigned to it by section 734 of the Taxes Consolidation Act, 1997;

‘unit’, in relation to an investment undertaking, has the meaning assigned to it by section 739B of the Taxes Consolidation Act, 1997;

‘unit’, in relation to a specified collective investment undertaking, has the meaning assigned to it by section 734 of the Taxes Consolidation Act, 1997.

• (2) Where any unit of an investment undertaking or of a specified collective investment undertaking is comprised in a gift or an inheritance, then such unit—

  • (a) shall be exempt from tax, and

  • (b) shall not be taken into account in computing tax on any gift or inheritance taken by the donee or successor,

  if, but only if, it is shown to the satisfaction of the Commissioners that—

  - (i) the unit is comprised in the gift or inheritance—
  
      - (I) at the date of the gift or at the date of the inheritance, and
  
      - (II) at the valuation date,
  
  - (ii) at the date of the disposition, the disponer is neither domiciled nor ordinarily resident in the State, and
  
  - (iii) at the date of the gift or at the date of the inheritance, the donee or successor is neither domiciled nor ordinarily resident in the State.”.
  

• (2) In relation to any unit of an investment undertaking comprised in a gift or an inheritance, section 85(2)(ii) (inserted by subsection (1)) of the Finance Act, 1989, shall, notwithstanding that the disponer was domiciled or ordinarily resident in the State at the date of the disposition, be treated as satisfied where—

• (a) the proper law of the disposition was not the law of the State at the date of the disposition, and

• (b) the unit came into the beneficial ownership of the disponer or became subject to the disposition prior to 15 February 2001.

• (3) This section shall have effect in relation to units of an investment undertaking comprised in a gift or an inheritance where the date of the gift or the date of the inheritance is on or after 1 April 2000.

• (4) This section shall have effect in relation to units of a specified collective investment undertaking comprised in a gift or an inheritance where the date of the gift or the date of the inheritance is on or after 15 February 2001 and the units—

• (a) come into the beneficial ownership of the disponer on or after 15 February 2001, or

• (b) become subject to the disposition on or after that date without having been previously in the beneficial ownership of the disponer.

225 Abolition of probate tax.

225.—(1) Chapter I (which relates to the taxation of assets passing on inheritance) of Part VI of the Finance Act, 1993, is repealed.

• (2) Sections 137, 138, 139 and 140 of the Finance Act, 1994, section 143 of the Finance Act, 1997, section 127 of the Finance Act, 1998, and sections 147 and 150 of the Finance Act, 2000, are repealed.

• (3) Subsections (1) and (2) shall have effect in relation to probate tax which would but for this section first become due and payable on or after 6 December 2000.

226 Amendment of section 133 (exemption of certain policies of assurance) of Finance Act, 1993.

226.—(1) Section 133 of the Finance Act, 1993, is amended by the substitution in subsection (2)(b) of the following for subparagraph (ii):

• “(ii) at the date of the disposition, the disponer is neither domiciled nor ordinarily resident in the State;”.

• (2) This section shall have effect in relation to a policy comprised in a gift or an inheritance where the date of the gift or the date of the inheritance is on or after 15 February 2001 and the policy—

• (a) comes into the beneficial ownership of the disponer on or after 15 February 2001, or

• (b) becomes subject to the disposition on or after that date without having been previously in the beneficial ownership of the disponer.

227 Amendment of section 124 (interpretation (Chapter I)) of Finance Act, 1994.

227.—(1) Section 124 of the Finance Act, 1994, is amended by the insertion of the following after subsection (3):

• “(4) In this Chapter any reference to a donee or successor shall be construed as including a reference to the transferee referred to in section 23 (1) of the Principal Act.”.

• (2) This section shall have effect in relation to gifts or inheritances taken on or after 11 April 1994.

228 Amendment of section 127 (relevant business property) of Finance Act, 1994.

228.—(1) Section 127 of the Finance Act, 1994, is amended—

• (a) by the substitution of “whether incorporated in the State or otherwise” for “incorporated in the State” in each place where it occurs,

• (b) by the deletion of “in so far as situated in the State,” in paragraph (e) of subsection (1), and

• (c) by the deletion of subsection (3).

• (2) This section shall have effect in relation to gifts or inheritances taken on or after 15 February 2001.

229 Amendment of provisions relating to the taxation of discretionary trusts.

229.—(1) Section 143 of the Finance Act, 1994, is amended—

• (a) in subsection (1)—

• (i) by the insertion of the following definition after the definition of “relevant inheritance”:

“‘settled relevant inheritance’ means a relevant inheritance taken on the death of a life tenant;”,

• (ii) by the substitution of the following definition for the definition of “the relevant period”:

“‘relevant period’ means—

• (a) in relation to an earlier relevant inheritance, the period of 5 years commencing on the date of death of the disponer,

• (b) in relation to a settled relevant inheritance, the period of 5 years commencing on the date of death of the life tenant concerned, and

• (c) in relation to a later relevant inheritance, the period of 5 years commencing on the latest date on which a later relevant inheritance was deemed to be taken from the disponer;”,

and

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

“Provided that where in the case of each and every earlier relevant inheritance, each and every settled relevant inheritance or each and every later relevant inheritance, as the case may be, taken from one and the same disponer, one or more objects of the appropriate trust became beneficially entitled in possession before the expiration of the relevant period to an absolute interest in the entire of the property of which that inheritance consisted on and at all times after the date of that inheritance (other than property which ceased to be subject to the terms of the appropriate trust by virtue of a sale or exchange of an absolute interest in that property for full consideration in money or money's worth), then, in relation to all such earlier relevant inheritances, all such settled relevant inheritances or all such later relevant inheritances, as the case may be, this section shall cease to apply and tax shall be computed accordingly in accordance with the provisions of the said section 109 as if this section had not been enacted.”.

• (2) This section shall have effect as respects relevant inheritances taken on or after 26 January 2001.

PART 7 Anti-Speculative Property Tax

230 Abolition of antispeculative property tax.

230.—Anti-speculative property tax shall not be charged, levied or paid under section 6 of the Finance (No. 2) Act, 2000, by reference to any valuation date (within the meaning of section 5(1) of that Act) occurring on or after 6 April 2001.

PART 8 Miscellaneous

231 Interpretation (Part 8).

231.—In this Part “Principal Act” means the Taxes Consolidation Act, 1997.

232 Amendment of Chapter 3 (other obligations and returns) of Part 38 of Principal Act.

232.—(1) Chapter 3 of Part 38 of the Principal Act is amended—

• (a) by the substitution for section 887 of the following:

“Use of electronic data processing.

887.—(1) In this section— ‘the Acts’ means— (a) the Tax Acts, (b) the Capital Gains Tax Acts, (c) the Value-Added Tax Act, 1972, and the enactments amending or extending that Act. (d) the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act, and (e) Part VI of the Finance Act, 1983, and any instrument made under any of these enactments; ‘record’ means any document which a person is obliged by the Acts to keep, to issue or to produce for inspection, and any other written or printed material. (2) For the purposes of the Acts, but subject to section 17 of the Value-Added Tax Act, 1972, a record may be stored, maintained, transmitted, reproduced or communicated, as the case may be, by any electronic, photographic or other process that— (a) provides a reliable assurance as to the integrity of the record from the time when it was first generated in its final form by such electronic, photographic or other process, (b) permits the record to be displayed in intelligible form and produced in an intelligible printed format, (c) permits the record to be readily accessible for subsequent reference in accordance with paragraph (b), and (d) conforms to the information technology and procedural requirements drawn up and published by the Revenue Commissioners in accordance with subsection (3). (3) The Revenue Commissioners shall from time to time draw up and publish in Iris Oifigiúil the information technology and procedural requirements to which any electronic, photographic or other process used by a person for the storage, maintenance, transmission, reproduction and communication of any record shall conform. (4) The authority conferred on the Revenue Commissioners by this section to draw up and publish requirements shall be construed as including the authority exercisable in a like manner to revoke and replace or to amend any such requirements. (5) (a) Every person who preserves records by any electronic, photographic or other process, when required to do so by a notice in writing from the Revenue Commissioners, shall, within such period as is specified in the notice, not being less than 21 days from the date of service of the notice, supply to the Revenue Commissioners full particulars relating to the process used by that person, including full particulars, relating to software (within the meaning of section 912). (b) A person who fails or refuses to comply with a notice served on the person under paragraph (a) shall be liable to a penalty of £1,000. (6) (a) Subject to paragraph (b), where records are kept by a person (being a person who is obliged by the Acts to keep such records) by any electronic, photographic or other process which does not conform with the requirements referred to in paragraphs (a) to (d) of subsection (2), then the person shall be deemed to have failed to comply with that obligation and that person shall be liable to the same penalties as the person would be liable to if the person had failed to comply with any obligation under the Acts in relation to the keeping of records. (b) Paragraph (a) shall not apply where the person referred to in that paragraph complies with any obligation under the Acts in relation to the keeping of records other than in accordance with the provisions of subsection (2). (7) Where records are preserved by any electronic, photographic or other process, information contained in a document produced by any such process shall, subject to the rules of court, be admissible in evidence in any proceedings, whether civil or criminal, to the same extent as the records themselves. (8) The Revenue Commissioners may nominate any of their officers to discharge any function authorised by this section to be discharged by the Revenue Commissioners.”,

• (b) by the deletion of section 893,

• (c) by the deletion in section 894(2) of paragraph (d),

• (d) by the substitution for section 896 of the following:

“Returns in relation to certain offshore products.

896.—(1) In this section— ‘appropriate inspector’, in relation to an intermediary, means— (a) the inspector who has last given notice in writing to the intermediary, that he or she is the inspector to whom the intermediary is required to deliver the return specified in subsection (2), (b) where there is no such inspector as is referred to in paragraph (a), the inspector to whom it is customary for the intermediary to deliver a return or statement of income or profits, or (c) where there is no such inspector as is referred to in paragraphs (a) or (b), the inspector of returns specified in section 950; ‘chargeable period’ has the same meaning as in section 321(2); ‘foreign life policy’ means a policy of assurance on the life of a person commenced— (a) by a branch or agency (carrying on business in a State other than the State) of an assurance company, or (b) by an assurance company (carrying on business in a State other than the State) other than by its branch or agency carrying on business in the State; ‘intermediary’ means any person carrying on in the State a trade or business in the course of operations of which that person provides relevant facilities; ‘material interest’ shall be construed in accordance with section 743(2); ‘offshore fund’ has the meaning assigned to it by section 743(1); ‘offshore product’ means— (a) a material interest in an offshore fund, or (b) a foreign life policy; ‘relevant facilities’ means— (a) the marketing in the State of offshore products, (b) the acting in the State as an intermediary in relation to the acquisition or disposal, in whole or in part, of offshore products by or on behalf of persons who are resident or ordinarily resident in the State, or (c) the provision in the State of facilities for the making of payments from an offshore product to persons who are entitled to the offshore product, whether on the disposal, in whole or in part of the offshore product, or otherwise; ‘specified return date for the chargeable period’, in relation to a chargeable period, has the meaning assigned to it by section 895(1); ‘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. (2) Every intermediary shall as respects a chargeable period prepare and deliver to the appropriate inspector on or before the specified return date for the chargeable period a return specifying in respect of every person in respect of whom that intermediary has acted in the chargeable period as an intermediary— (a) the full name and permanent address of the person, (b) the person's tax reference number, (c) a description of the relevant facilities provided, including a description of the offshore product concerned and the name and address of the person who provided the offshore product, and (d) details of all payments made (directly or indirectly) by or to the person in respect of the offshore product. (3) Where an intermediary fails— (a) for any chargeable period to make a return required to be made by the intermediary in accordance with subsection (2), (b) to include in such a return for a chargeable period details of any person to whom the intermediary provided relevant facilities in the chargeable period, or (c) to take reasonable care to confirm the details of the kind referred to in subsection (2) furnished to the intermediary by a person to whom the intermediary has provided relevant facilities in the chargeable period, the intermediary shall in respect of each such failure be liable to a penalty of £1,500. (4) Where a person fails— (a) to furnish details of the kind referred to in subsection (2) to an intermediary who has provided the person with relevant facilities, or (b) knowingly or wilfully furnishes that intermediary with incorrect details of that kind, the person shall be liable to a penalty of £1,500. (5) Where in any chargeable period a person acquires an offshore product to which section 730I or 747C (inserted by the Finance Act, 2001) does not relate, the person shall, notwithstanding anything to the contrary in section 950 or 1084, be deemed for that chargeable period to be a chargeable person for the purposes of sections 951 and 1084, and the return of income to be delivered by the person for that chargeable period shall include the following particulars— (a) the name and address of the offshore fund or, as the case may be, the person who commenced the life policy, (b) a description, including the cost to the person, of the material interest acquired or, as the case may be, a description of the terms of the life policy including premiums payable, and (c) the name and address of the person through whom the offshore product was acquired.”,

and

• (e) by the substitution in section 903(1) in the definition of “records” for “stored by any means approved under section 887” of “stored in accordance with section 887”.

• (2)
• (a) In this subsection “chargeable period” has the same meaning as in section 321(2).

• (b) Subsection (1) shall apply as respects any chargeable period commencing on or after 15 February 2001.

• (3)
• (a) The Principal Act is amended—

• (i) in section 887 (substituted by subsection (1)(a)) by the substitution in subsection (5)(b) for “£1,000” of “€1,265”, and

• (ii) in section 896 (inserted by subsection (1)(d)) by the substitution in subsections (3) and (4) for “£1,500” of “€1,900”.

• (b) This subsection shall apply as on and from 1 January 2002.

233 Amendment of section 1078 (revenue offences) of Principal Act.

233.—(1) Section 1078(3) of the Principal Act is amended by the substitution in paragraph (a) of “£1,500” for “£1,000”.

• (2)
• (a) Section 1078(3) of the Principal Act is amended by the substitution in paragraph (a) of “€1,900” for “£1,500”.

• (b) This subsection shall apply as on and from 1 January 2002.

234 Amendment of section 1094 (tax clearance in relation to certain licences) of Principal Act.

234.—Section 1094 of the Principal Act is amended in subsection (1), in the definition of “licence” by the addition of the following paragraph after paragraph (k):

• “(l) subsection (1A) (inserted by section 172 of the Finance Act, 2001) of section 2 of the Intoxicating Liquor (National Concert Hall) Act, 1983;”.

235 Amendment of Chapter 6 (electronic transmission of returns of income, profits, etc., and of other Revenue returns) of Part 38 of Principal Act.

235.—Chapter 6 of Part 38 of the Principal Act is amended with effect from 15 February 2001—

• (a) in section 917D(1)—

• (i) by the substitution—

• (I) for the definition of “digital signature” of the following:

“‘digital signature’, in relation to a person, means an advanced electronic signature (within the meaning of the Electronic Commerce Act, 2000) provided to the person by the Revenue Commissioners solely for the purpose of making an electronic transmission of information which is required to be included in a return to which this Chapter applies and for no other purpose and a qualified certificate (within the meaning of that Act) provided to the person by the Revenue Commissioners or a person appointed in that behalf by the Revenue Commissioners;”,

• (II) for the definition of “return” of the following:

“‘return’ means any return, claim, application, notification, election, declaration, nomination, statement, list, registration, particulars or other information which a person is or may be required by the Acts to give to the Revenue Commissioners or any Revenue officer;”,

and

• (ii) by the deletion of subsection (2);

• (b) in section 917F—

• (i) by the substitution in paragraph (c) of subsection (1) for “the approved person's digital signature” of “the approved person's or the authorised person's digital signature”, and

• (ii) by the substitution for subsection (5) of the following:

• “(5) Where an approved transmission is made by—

  • (a) an approved person on behalf of another person, or

  • (b) an authorised person on behalf of another person (not being the person who authorised that person),

  a hard copy of the information shall be made and authenticated in accordance with section 917K.”;

• (c) in section 917G—

• (i) by the substitution in subsection (1) for “complies with the provisions of this section and, in particular, with the conditions specified in subsection (3)” of “complies with the condition specified in subsection (3)(a) in relation to authorised persons and the condition specified in subsection (3)(b) in relation to the making of transmissions and the use of digital signatures”,

• (ii) by the substitution in subsection (2) for “in writing or by such other means as may be approved by the Revenue Commissioners” of “by such means as the Revenue Commissioners may determine”, and

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

• “(3) The conditions referred to in subsection (1) are that—

  • (a) the person notifies the Revenue Commissioners in a manner to be determined by the Revenue Commissioners of the persons (each of whom is referred to in this section as an ‘authorised person’), in addition to the person, who are authorised to make the transmission, and

  • (b) the person and each person who is an authorised person in relation to that person in making the transmission complies with the requirements referred to in subsections (2) and (3) of section 917H.”;

• (d) by the substitution in section 917H for subsections (2) and (3) of the following:

• “(2) The Revenue Commissioners shall publish and make known to each approved person and each authorised person any requirement for the time being determined by them as being applicable to—

  • (a) the manner in which information which is required to be included in a return to which this Chapter applies is to be transmitted electronically, and

  • (b) the use of a person's digital signature.

• (3) The requirements referred to in subsection (2) include—

  • (a) requirements as to the software or type of software to be used to make a transmission,

  • (b) the terms and conditions under which a person may make a transmission, and

  • (c) the terms and conditions under which a person may use that person's digital signature.”;

• (e) by the deletion of section 917I;

• (f) in section 917K(1)(a) by the substitution for “to be transmitted” of “transmitted or to be transmitted”, and

• (g) in section 917M(3) by the substitution for “for the purposes of any proceedings in relation to which the certificate is given” of “for the purposes of the Acts”.

236 Certificates in court procedings.

236.—As on and from the passing of this Act, the Principal Act is amended—

• (a) in Chapter 1 of Part 42—

• (i) by the substitution in section 966 of the following for subsection (5):

• “(5) In proceedings pursuant to this section a certificate signed by an officer of the Revenue Commissioners certifying the following facts:

  • (a) that before the institution of the proceedings a stated sum for income tax became due and payable by the defendant—

    • (i) under an assessment which had become final and conclusive, or

    • (ii) under section 942(6),

    and

  • (b) (i) that before the institution of the proceedings payment of that stated sum was duly demanded from the defendant, and

    • (ii) that that stated sum or a stated part of that sum remains due and payable by the defendant,

    shall be evidence until the contrary is proved of those facts.”,

and

• (ii) by the substitution of the following for section 967:

“Evidence of electronic transmission of particulars of income tax to be collected in proceedings for recovery of tax.

967.—In any proceedings in the District Court, the Circuit Court or the High Court for or in relation to the recovery of any income tax, a certificate signed by an officer of the Revenue Commissioners certifying that before the institution of proceedings a stated sum of income tax transmitted in accordance with section 928(2) became due and payable by the defendant— (a) (i) under an assessment which had become final and conclusive, or (ii) under section 942(6), and (b) demand for the payment of the tax has been duly made, shall be prima facie evidence until the contrary is proved of those facts, and a certificate so certifying and purporting to be signed as specified in this section may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.”,

and

• (b) by the substitution in section 1080 of the following for subsection (4):

• “(4) In proceedings instituted by virtue of subsection (3)—

  • (a) a certificate signed by an officer of the Revenue Commissioners certifying that a stated amount of interest is due and payable by the person against whom the proceedings were instituted shall be evidence until the contrary is proved that that amount is so due and payable, and

  • (b) a certificate so certifying and purporting to be signed as specified in this section may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.”.

237 Amendment of Chapter 4 (collection and recovery of income tax on certain emoluments (PAYE system) of Part 42 of Principal Act.

237.—Chapter 4 of Part 42 of the Principal Act is amended—

• (a) in section 990—

• (i) by the insertion of the following after subsection (1):

• “(1A)

  • (a) Where—

    • (i) a notice is served on an employer under subsection (1) in relation to a year of assessment (being the year of assessment 2000-2001 or a subsequent year of assessment), and

    • (ii) prior to the service of the notice, the employer had failed to submit to the Collector-General, in relation to that year of assessment, the return required by Regulation 35 of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960),

    then, if, within 14 days after the service of the notice, the employer—

    - (I) sends that return to the Collector-General, and
    
    - (II) pays any balance of tax remaining unpaid for the year of assessment in accordance with the return, together with any interest and costs which may have been incurred in connection with the default,
    
      the notice shall, subject to paragraph (*c*), stand discharged and any excess of tax which may have been paid shall be repaid.
    

  • (b) If, on expiration of the period referred to in paragraph (a), the employer has not complied with subparagraphs (I) and (II) of paragraph (a), the balance of tax remaining unpaid as specified in the notice shall become due and recoverable in the like manner as if the balance of tax had been charged on the employer under Schedule E.

  • (c) Where action for the recovery of tax specified in a notice under subsection (1) has been taken, being action by means of the institution of proceedings in any court or the issue of a certificate under section 962, so much of paragraph (a) as relates to the discharge of the notice shall not, unless the Collector-General otherwise directs, apply in relation to that notice until that action has been completed.”,

and

• (ii) by the insertion in subsection (2) of the following after “subsection (1)”:

“and prior to such service the employer had sent to the Collector-General the return required by Regulation 35 of the Income Tax (Employment) Regulations, 1960 (S.I. No. 28 of 1960)”,

• (b) in section 991, by the insertion of the following after subsection (1):

• “(1A) Notwithstanding anything in subsection (1) but subject to subsection (1B), where an amount of tax (in this subsection referred to as ‘the relevant amount’) in respect of a year of assessment (being the year of assessment 2000-2001 or a subsequent year of assessment) is paid later than 14 days after the end of that year of assessment, interest in accordance with subsection (1) shall be payable and calculated—

  • (a) where the relevant amount does not exceed 10 per cent of the total amount of tax which the employer was liable under this Chapter and any regulations made under this Chapter to pay to the Revenue Commissioners for that year of assessment, as if the due date for payment of the relevant amount was the 14th day immediately following the end of the year of assessment, and

  • (b) where the relevant amount exceeds 10 per cent of the amount so payable, as if the due date for payment of the relevant amount was—

    • (i) as respects the year of assessment 2000-2001, 31 October, 2000,

    • (ii) as respects the year of assessment 2001, 30 September, 2001, and

    • (iii) as respects the year of assessment 2002 and subsequent years of assessment, 31 July in the year.

• (1B) Where, within 1 month of interest being demanded by the Collector-General in accordance with subsection (1A), the employer declares in writing to the Collector-General the amounts of tax which he or she was liable to remit, but had not remitted, for each of the income tax months comprised in the year of assessment, interest shall be calculated and payable in respect of those amounts in accordance with subsection (1), without regard to subsection (1A).”,

and

• (c) by the insertion of the following after section 991:

“Payment of tax by direct debit.

991A.—Where, for a year of assessment (being the year of assessment 2000-2001 or a subsequent year of assessment)— (a) an employer has been authorised by the Collector-General in accordance with Regulation 31A (inserted by the Income Tax (Employments) Regulations, 1989 (S.I. No. 58 of 1989)) of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), to remit income tax for a period longer than an income tax month, and (b) such authorisation is subject to the condition that the employer is required each month to pay an amount to the Collector-General by direct debit from the employer's bank account, then, the provisions of section 991 shall apply to any tax in respect of that year of assessment which is paid by the employer after the end of that year.”.

238 Amendment of section 1002 (deduction from payments due to defaulters of amounts due in relation to tax) of Principal Act.

238.—Section 1002 of the Principal Act is amended, in paragraph (a) of subsection (3), by the substitution for “one month” of “14 days”, and the said paragraph (a), as so amended, is set out in the Table to this section.

TABLE

• (a) a period of 14 days has expired from the date on which such default commenced, and

239 Amendment of section 1006A (offset between taxes) of Principal Act.

239.—Section 1006A of the Principal Act is amended—

• (a) in subsection (1) in the definition of “liability” by the insertion after “as appropriate” of “, and includes any interest due under the Acts in relation to such tax, duty, levy or other charge”, and

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

• “(2) Notwithstanding any other provision of the Acts, where the Revenue Commissioners are satisfied that a person has not complied with the obligations imposed on the person by the Acts, in relation to either or both—

  • (a) the payment of a liability required to be paid, and

  • (b) the delivery of returns required to be made,

  they may, in a case where a repayment is due to the person in respect of a claim or overpayment—

  - (i) where paragraph (*a*) applies, or where paragraphs (*a*) and (*b*) apply, instead of making the repayment set the amount of the claim or overpayment against any liability due under the Acts, and
  
  - (ii) where paragraph (*b*) only applies, withhold making the repayment until such time as the returns required to be delivered have been delivered.
  

• (2A) Where the Revenue Commissioners have set or withheld a repayment by virtue of subsection (2), they shall give notice in writing to that effect to the person concerned and, where subsection (2)(ii) applies, interest shall not be payable under any provision of the Acts from the date of such notice in respect of any repayment so withheld.”.

240 Amendment of enactments consequent on changeover to Euro.

240.—(1) (a) Subject to subsection (2), in each provision specified in column (1) of Schedule 5 for the words or amount set out in column (2) of that Schedule at that entry there shall be substituted the words or amount set out at the corresponding entry in column (3) of that Schedule.

• (b) Where words are or an amount is mentioned more than once in a provision specified in column (1) of Schedule 5, then the substitution provided for by paragraph (a) shall apply as respects those words or that amount to each mention of those words or that amount in that provision.

• (2) Subsection (1) shall apply—

• (a) to the extent that the amendments relate to income tax and related matters, other than the amendments relating to such matters referred to in subparagraphs (ii), (iii), (iv), (v) and (vi) of paragraph (l), as respects the year of assessment 2002 and subsequent years of assessment,

• (b) to the extent that the amendments relate to capital gains tax and related matters, other than the amendments relating to such matters referred to in paragraph (l) (vii), as respects the year of assessment 2002 and subsequent years of assessment,

• (c) to the extent that the amendments relate to corporation tax and related matters, other than the amendments relating to such matters referred to in subparagraphs (i), (iii) and (iv) of paragraph (l), for accounting periods ending on or after 1 January 2002,

• (d) to the extent that the amendments relate to customs duties and related matters, as on and from 1 January 2002,

• (e) to the extent that the amendments relate to duties of excise and related matters, as on and from 1 January 2002,

• (f) to the extent that the amendments relate to value-added tax and related matters, as on and from 1 January 2002,

• (g) to the extent that the amendments relate to capital acquisitions tax and related matters, other than the amendments relating to such matters referred to in subparagraphs (viii) and (ix) of paragraph (l), as respects gifts or inheritances taken on or after 1 January 2002,

• (h) to the extent that the amendments relate to stamp duties and related matters, other than the amendments relating to such matters referred to in subparagraphs (x), (xi), (xii) and (xiii) of paragraph (l), as respects instruments executed on or after 1 January 2002,

• (i) to the extent that section 1086 of the Taxes Consolidation Act, 1997 is amended, as respects specified sums such as are referred to in paragraphs (c) and (d) of section 1086(2) of that Act which the Revenue Commissioners accept or undertake to accept on or after 1 January 2002,

• (j) to the extent that section 100 of the Finance Act, 1983 is amended, as respects any sale of an estate or interest in residential property the date of the contract for which is on or after 1 January 2002,

• (k) to the extent that the enactment amended imposes any fine, forfeiture, penalty or punishment for any act or omission, as respects any act or omission which takes place or begins on or after 1 January 2002,

and

• (l) to the extent that—

• (i) section 110 of the Taxes Consolidation Act, 1997 (in this paragraph referred to as the “Act of 1997”) is amended, as respects a company acquiring qualifying assets on or after 1 January 2002,

• (ii) sections 201 and 202 of the Act of 1997 and Schedule 3 to that Act are amended, as respects payments made on or after 1 January 2002,

• (iii) section 404(6) of the Act of 1997 is amended, as respects a lease entered into on or after 1 January 2002,

• (iv) section 481(2)(c) of the Act of 1997 is amended, as respects a certificate issued under subsection (2)(a)(i) of that section on or after 1 January 2002,

• (v) section 491 of the Act of 1997 is amended, as respects eligible shares (within the meaning of section 488 of that Act) issued on or after 1 January 2002,

• (vi) section 494(1) of the Act of 1997 is amended, as respects a relevant investment (within the meaning of section 488 of that Act) being an individual's first such investment made on or after 1 January 2002, and sections 494(5) and 494(6)(b) of that Act are amended, as respects a subscription for eligible shares (within the meaning of section 488 of that Act) where the specified date (within the meaning of section 494 of that Act) in relation to that subscription is a date on or after 1 January 2002,

• (vii) sections 598 and 602 of the Act of 1997 are amended, as respects disposals made on or after 1 January 2002,

• (viii) the First and Second Schedule to the Capital Acquisitions Tax Act, 1976 and section 54(1)(b) of that Act are amended, as respects the computation of tax on gifts and inheritances taken on or after 1 January 2002,

• (ix) sections 146(4B)(a)(i)(I), 146(4B)(a)(i)(II)(B), 146 (4C)(b) and 146(4C)(c) of the Finance Act, 1994 are amended, as respects applications for registration made on or after 1 January 2002,

• (x) sections 117(1) and 117(2)(a) of the Stamp Duties Consolidation Act, 1999 (in this paragraph referred to as the “Act of 1999”) are amended, as respects transactions occurring on or after 1 January 2002,

• (xi) sections 123(3)(b)(ii) and 123(4) of the Act of 1999 are amended, as respects any statement which falls to be delivered by a promoter under section 123 of that Act, on or after 1 January 2002, and

• (xii) sections 124(1)(c), 124(2)(c) and 124(2)(d)(ii) of the Act of 1999 are amended, as respects any statement which falls to be delivered by a bank or promoter under section 124 of that Act on or after 1 January 2002, and

• (xiii) section 146(3) of the Act of 1999 is amended, as respects any licence granted by the Commissioners under section 146(1) of that Act on or after 1 January 2002.

241 Deletion of certain references to Bord Telecom Éireann and Irish Telecommunications Investments plc. in Principal Act.

241.—(1) The Principal Act is amended by the deletion—

• (a) in the Table to section 37 of the words “Securities issued on or after the 25th day of May, 1988, by Bord Telecom Éireann” and “Securities issued on or after the 25th day of May, 1988, by Irish Telecommunications Investments plc.”,

• (b) in section 607(1)(d) of the words “Bord Telecom Éireann, Irish Telecommunications Investments plc.,”, and

• (c) in section 838(1)(a), in paragraph (ii) of the definition of “securities”, of the words “Bord Telecom Éireann, Irish Telecommunications Investments plc.,”.

• (2) This section shall have effect as respects any securities issued by Bord Telecom Éireann or Irish Telecommunications Investments plc. on or after 15 February 2001.

242 Care and management of taxes and duties.

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

243 Short title, construction and commencement.

243.—(1) This Act may be cited as the Finance Act, 2001.

• (2) Part 1 (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

• (3) Parts 2 and 3 (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties and Part 3 (so far as relating to customs) shall be construed together with the Customs Acts.

• (4) Part 4 shall be construed together with the Value-Added Tax Acts, 1972 to 2000, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 2001.

• (5) Part 5 shall be construed together with the Stamp Duties Consolidation Act, 1999.

• (6) Part 6 (so far as relating to capital acquisitions tax) shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act.

• (7) Part 7 (so far as relating to anti-speculative property tax) shall be construed together with the Finance (No. 2) Act, 2000.

• (8) Part 8 (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts and (so far as relating to value-added tax) shall be construed together with the Value-Added Tax Acts, 1972 to 2001 and (so far as relating to residential property tax) shall be construed together with Part VI of the Finance Act, 1983, and the enactments amending or extending that Part and (so far as relating to gift tax or inheritance tax) shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act.

• (9) Part 1 shall, save as is otherwise expressly provided therein, apply as on and from 6 April 2001.

• (10) In relation to Part 4:

• (a) sections 181, 187 and 189 shall be deemed to have come into force and shall take effect as on and from 1 January 2001;

• (b) paragraph (b) of section 188 shall be deemed to have come into force and shall take effect as on and from 8 January 2001;

• (c) paragraphs (c), (d) and (e) of section 199, and section 200, shall have effect as on and from 1 May 2001;

• (d) paragraphs (b) and (c) of section 193 shall have effect as on and from 1 July 2001;

• (e) paragraphs (a) and (b) of section 199 shall have effect as on and from 1 September 2001;

• (f) section 198 shall have effect as on and from 1 January 2002;

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

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

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

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

SCHEDULE 1 Amendments Consequential on Changes in Personal Reliefs

• (a) in subsection (1) of section 3—

• (i) by the insertion of the following definitions before the definition of “higher rate”:

“‘chargeable tax’, in relation to an individual for a year of assessment, means the amount of income tax to which the individual is chargeable for that year of assessment under section 15 in respect of his or her total income for that year including, in the case of an individual assessed to tax in accordance with the provisions of section 1017, the total income, if any, of the individual's spouse;

‘general tax credit’, in relation to an individual for a year of assessment, means any relief (other than a credit under section 59) applicable for that year of assessment, not by way of deduction from income, but by way of reduction of or deduction from the chargeable tax or by way of repayment thereof when paid, other than a personal tax credit, and such credit shall be determined by reference to the amount of the reduction, deduction or repayment as the case may be;”, and

• (ii) by the insertion of the following definitions before the definition of “relative”:

“‘income tax payable’, in relation to an individual for a year of assessment, means the chargeable tax less the aggregate of the personal tax credits and general tax credits;

‘personal tax credit’, in relation to an individual for a year of assessment, means a tax credit specified in sections 461, 461A, 462, 463, 464, 465, 466, 466A, 468 and 472;”,

• (b) in section 126, by the substitution in subsection (7) of the following for paragraphs (a) and (b):

• “(a) The Revenue Commissioners may, in order to provide for the efficient collection and recovery of any tax due in respect of benefits to which subsection (3) applies, make regulations modifying the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), in their application to those benefits, the employees in receipt of those benefits, the reliefs from income tax appropriate to such employees, and employers of such employees or certificates of tax credits and standard rate cut-off point or tax deduction cards held by employers of such employees in respect of those employees.

• (b) Without prejudice to the generality of paragraph (a), regulations under that paragraph may include provision for the reallocation by the Revenue Commissioners (without the issue of amended notices of determination of tax credits and standard rate cut-off point, amended certificates of tax credits and standard rate cut-off point and amended tax deduction cards) of the reliefs from income tax appropriate to employees between the benefits to which subsection (3) applies and other emoluments receivable by them.”,

• (c) in section 128, by the substitution, in subsection (2A)(inserted by the Finance Act, 2000), of the following for paragraph (a):

• “(a) that amount is deducted in accordance with regulations made under section 986 in determining the amount of his or her tax credits and standard rate cut-off point, or”,

• (d) in section 187—

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

• “(1) In this section, ‘the specified amount’ means, subject to subsection (2)—

  • (a) in a case where the individual would apart from this section be entitled to a tax credit specified in section 461(a) (inserted by the Finance Act, 2001), £6,068, and

  • (b) in any other case, £3,034.”,

and

• (ii) in paragraph (a) of subsection (2), by the substitution of “£333” for “£450”, in both places where it occurs, and of “£481” for “£650”,

• (e) in section 458—

• (i) in subsection (1), by the substitution of the following for paragraph (b):

• “(b) to have the income tax to be charged on the individual reduced by such tax credits and other reductions as are specified in the provisions referred to in Part 2 of that Table, but subject to subsection (1A) and those provisions.”,

• (ii) by the insertion after subsection (1) of the following:

• “(1A) Where an individual is entitled to a tax credit specified in a provision referred to in Part 2 of the Table to this section, the income tax to be charged on the individual for the year of assessment, other than in accordance with section 16(2), shall be reduced by the lesser of—

  • (a) the amount of the tax credit, or

  • (b) the amount which reduces that income tax to nil.”,

• (iii) in subsection (2), by the substitution of the following for paragraph (b):

• “(b) any such tax credits or reductions in tax as are specified in the provisions referred to in Part 2 of the Table to this section.”,

and

• (iv) in Part 2 of the Table to the section, by the substitution of “Section 461” for “Section 461(2)”,

• (f) by the substitution of the following for section 461 (inserted by the Finance Act, 1999):

“Basic personal tax credit.

461.—In relation to any year of assessment, an individual shall be entitled to a tax credit (to be known as the ‘basic personal tax credit’) of— (a) £1,628, in a case in which the claimant is a married person who— (i) is assessed to tax for the year of assessment in accordance with section 1017, or (ii) proves that his or her spouse is not living with him or her but is wholly or mainly maintained by him or her for the year of assessment and that the claimant is not entitled, in computing his or her income for tax purposes for that year, to make any deduction in respect of the sums paid by him or her for the maintenance of his or her spouse, (b) £1,628, in a case in which the claimant in the year of assessment is a widowed person, other than a person to whom paragraph (a) applies, whose spouse has died in the year of assessment, and (c) £814, in the case of any other claimant.”,

• (g) by the substitution of the following for section 461A (inserted by the Finance Act, 2000):

“Additional tax credit for certain widowed persons.	461A.—A widowed person, other than a person to whom paragraph (a) or (b) of section 461, or to whom section 462, applies, shall, in addition to the basic personal tax credit referred to in section 461(c), be entitled to a tax credit (to be known as the ‘widowed person tax credit’) of £148.”,

• (h) by the substitution of the following for section 462 (inserted by the Finance Act, 1999):