Legalize / Ireland / Act

FINANCE ACT, 2001

Type Act

Publication 2001-03-30

Last updated 2024-02-09

State Partially repealed superseded text

Text As published

Source Irish Statute Book

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articles 243

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.

58 amending acts · 2024-02-09, S.I. No. 36/2024 - Control of Excisable Products Regulations 2024

Act to provide for the imposition, repeal, remission, alteration and regulation of taxation, of stamp duties and of duties relating to excise and otherwise to make further provision in connection with finance including the regulation of customs

Reform history JSON API

“11A. (1) Notwithstanding any other provision of this Schedule, in any case where a trust is established by a company which is a relevant company, this Schedule shall, with any necessary modification, apply as respects the beneficiaries under the trust as if this paragraph were substituted for paragraph 11.

(2) The trust deed shall contain provision as to the beneficiaries under the trust in accordance with this paragraph.

(3) The trust deed shall provide that a person is a beneficiary at a particular time (in this subparagraph referred to as the ‘relevant time’) if—

(a) the person was an employee or a director of the relevant company or of a company within the relevant company's group on the day the trust was established by that relevant company,

(b) the person is at the relevant time an employee or a director of—

(i) a company (in this subparagraph referred to as the ‘first-mentioned company’) which is, or was at any time since the day the trust was established, within the founding company's group,

(ii) a company within a group of companies (within the meaning of paragraph 2(2)(b)) which has acquired control of the first-mentioned company,

(iii) a company to which—

(I) an employee, or

(II) a director,

referred to in clause (a) has been transferred under either or both the European Communities (Safe-guarding of Employees' Rights on Transfer of Undertaking) Regulations, 1980 and 2000 and the Central Bank Act, 1971, or

(iv) a company within a group of companies (within the meaning of paragraph 2(2)(b)), of which the company referred to in subclause (iii) is, or was at any time, a member,

(c) at each given time in a qualifying period the person was such an employee or a director of a company referred to in clause (b),

(d) in the case of a director, at that given time the person worked as a director of a company referred to in clause (b) or of a company within the relevant company's group at the rate of at least 20 hours a week (disregarding such matters as holidays and sickness), and

(e) the person is chargeable to income tax in respect of his or her office or employment under Schedule E.

(4) The trust deed may provide that a person is a beneficiary at a particular time if, but for subparagraph (3)(e), he or she would be a beneficiary within the rule which is included in the deed and conforms with subparagraph (3).

(5) Subject to subparagraph (6), the trust deed may provide that a person is a beneficiary at a particular time (in this subparagraph referred to as the ‘relevant time’) if—

(a) the person was an employee or a director of the relevant company or of a company within the relevant company's group on the day the trust was established by that relevant company,

(b) the person has at each given time in a qualifying period been an employee or a director of a company referred to in subparagraph (3)(b) at that given time,

(c) the person has ceased to be an employee or a director of a company referred to in subparagraph (3)(b),

(d) at each given time in the 5 year period, or such lesser period as the Minister for Finance may by order prescribe, commencing on the date the trust was established, 50 per cent or such lesser percentage as the Minister for Finance may by order prescribe, of the securities retained by the trustees at that time were pledged by them as security for borrowings, and

(e) at the relevant time a period of not more than 15 years has elapsed since the trust was established.

(6) The trust deed may provide that a person is a beneficiary at a particular time (in this subparagraph referred to as the ‘relevant time’) if—

(a) the person was an employee or a director of the relevant company or of a company within the relevant company's group on the day the trust was established by that relevant company,

(b) the person has at each given time in a qualifying period been an employee or a director of a company referred to in subparagraph (3)(b) at that given time,

(c) the person has ceased to be an employee or a director of a company referred to in subparagraph (3)(b), and

(d) at the relevant time a period of not more than 18 months has elapsed since the person so ceased.

(7) The trust deed shall not contain a rule that conforms with subparagraph (5) unless the rule is expressed as applying to every person within it.

(8) The trust deed may provide for a person to be a beneficiary if the person is a charity and the circumstances are such that—

(a) there is no person who is a beneficiary within the rule which is included in the deed and conforms with subparagraph (3) or with any rule which is so included and conforms with subparagraph (4), (5) or (6); and

(b) the trust is in consequence of being wound up.

(9) For the purposes of subparagraph (3), a qualifying period shall be a period—

(a) whose length is not more than 3 years,

(b) whose length is specified in the trust deed, and

(c) which ends with the relevant time (within the meaning of that subparagraph).

(10) For the purposes of subparagraphs (5) and (6), a qualifying period shall be a period—

(a) whose length is equal to that of the period specified in the trust deed for the purposes of a rule which conforms with subparagraph (3), and

(b) which ends when the person ceased as mentioned in subparagraph (5)(c) or (6)(c), as the case may be.

(11) The trust deed shall not provide for a person to be a beneficiary unless the person is within the rule which is included in the deed and conforms with subparagraph (3) or any rule which is so included and conforms with subparagraph (4), (5), (6) or (8).

(12) The trust deed shall provide that, notwithstanding any other rule which is included in it, a person cannot be a beneficiary at a particular time (in this subparagraph referred to as the ‘relevant time’) by virtue of a rule which conforms with subparagraph (3), (4), (5), (6) or (8) if—

(a) at the relevant time the person has a material interest in a company referred to in subparagraph (3)(b), or

(b) at any time in the period of one year preceding the relevant time the person has had a material interest in that company,

and for the purposes of this subparagraph any reference to a company shall, in a case to which clause (a) of the definition of relevant company applies, also include a reference to a trustee savings bank which has been reorganised into the relevant company concerned.

(13) For the purposes of satisfying the qualifying period requirement referred to in subparagraphs (3)(c), (5)(b) and (6)(b) a person shall also be regarded as such an employee or a director for any period in which that person is an employee or a director of, in a case to which clause (a) of the definition of relevant company applies, a trustee savings bank which has been reorganised into that relevant company.

(14) For the purposes of this paragraph ‘charity’ means any body of persons or trust established for charitable purposes only.

(15) Where an order is proposed to be made under subparagraph (5)(d), a draft of the order shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann.”.

(2) Subsection (1) shall apply and have effect as respects—

(a) a profit sharing scheme, or

(b) an employee share ownership trust,

approved on or after 12 December 2000.

18 Amendment of Part 30 (occupational pension schemes, retirement annuities, purchased life annuities and certain pensions) of Principal Act.

18.—Part 30 of the Principal Act is amended—

(a) in Chapter 1—

(i) in section 770(1):

(I) by the insertion of the following after the definition of “pension”:

“‘pension adjustment order’ means an order made in accordance with either section 12 of the Family Law Act, 1995, or section 17 of the Family Law (Divorce) Act, 1996;”,

(II) by the substitution of the following for the definition of proprietary director:

“‘proprietary director’ means a director who, either alone or together with his or her spouse and minor children is or was, at any time within 3 years of the date of—

(i) the specified normal retirement date,

(ii) an earlier retirement date, where applicable,

(iii) leaving service, or

(iv) in the case of a pension or part of a pension payable in accordance with a pension adjustment order, the relevant date in relation to that order,

the beneficial owner of shares which, when added to any shares held by the trustees of any settlement to which the director or his or her spouse had transferred assets, carry more than 5 per cent of the voting rights in the company providing the benefits or in a company which controls that company;”,

and

(III) by the insertion of the following after the definition of “relevant benefits”:

“‘relevant date’ means, in relation to a pension adjustment order, the date on which the decree of separation or the decree of divorce, as the case may be, was granted, by reference to which the pension adjustment order in question was made;”,

and

(ii) in subsection (3A) (inserted by the Finance Act, 1999) of section 772, by the substitution of the following for subparagraph (i):

“(i) a proprietary director of, or where a pension or part of a pension is payable in accordance with a pension adjustment order, the spouse or former spouse to whom the pension or part of the pension is so payable, of a proprietary director of, a company to which the scheme relates, or”,

and

(b) in Chapter 2—

(i) in section 784, by the insertion of the following after subsection (6):

“(7) Notwithstanding anything in section 18 or section 19, any payment of an annuity made on or after 1 January 2002 in respect of an annuity contract approved under this section or under section 785 shall be regarded as a pension chargeable to tax under Schedule E, and Chapter 4 of Part 42 shall apply accordingly.”,

(ii) in paragraph (c) of subsection (6) of section 784E (inserted by the Finance Act, 1999), by the substitution, as on and from 25 March 1999, for “subsections (2) and (4)” of “subsections (2) to (4)”,

and

(iii) in section 787—

(I) by the deletion of subsection (9),

(II) by the substitution of the following for subsection (10):

“(10) Where in any year of assessment a reduction or a greater reduction would be made under this section in the relevant earnings of an individual but for an insufficiency of net relevant earnings, the amount of the reduction which would have been made but for that reason, less the amount of the reduction which is made in that year, shall be carried forward to the next year of assessment, and shall be treated for the purposes of relief under this section as the amount of a qualifying premium paid in the next year of assessment.”,

and

(III) by the deletion of subsection (12).

19 Amendment of section 470 (relief for insurance against expenses of illness) of Principal Act.

19.—(1) As respects the year of assessment 2001 and subsequent years of assessment, section 470 of the Principal Act is amended—

(a) in subsection (1)—

(i) by the substitution of the following for the definition of “relevant contract”:

“‘relevant contract’, in relation to an individual, means a contract of insurance which provides specifically, whether in conjunction with other benefits or not, for the reimbursement or discharge, in whole or in part, of actual health expenses (within the meaning of section 469) of—

(a) the individual,

(b) the spouse of the individual, or

(c) the children or other dependants of the individual or of the spouse of the individual;”,

and

(ii) by the insertion after the definition of “relevant contract” of the following:

“‘relievable amount’, in relation to a payment to an authorised insurer under a relevant contract, means—

(a) where the payment covers no benefits other than such reimbursement or discharge as is referred to in the definition of ‘relevant contract’, an amount equal to the full amount of the payment, or

(b) where the payment covers benefits other than such reimbursement or discharge as is referred to in that definition, an amount equal to so much of the payment as is referable to such reimbursement or discharge.”,

(b) by the substitution of the following for subsections (2) and (3):

“(2) Subject to subsection (3), where for a year of assessment—

(a) an individual, or

(b) if the individual is a married person assessed to tax in accordance with section 1017, the individual's spouse,

has made a payment to an authorised insurer under a relevant contract, then, 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 an amount which is the lesser of—
- (i) an amount equal to the appropriate percentage of the relievable amount in relation to the payment, and

- (ii) the amount which reduces that income tax to nil.
(3)

(a) Where, on or after 6 April 2001, an individual makes a payment to an authorised insurer in respect of a premium due on or after that date under a relevant contract for which relief is due under subsection (2), the individual shall be entitled to deduct and retain out of it an amount equal to the appropriate percentage, for the year of assessment in which the payment is due, of the relievable amount in relation to the payment.

(b) An authorised insurer to which a payment referred to in paragraph (a) is made—

(i) shall accept the amount paid after deduction in discharge of the individual's liability to the same extent as if the deduction had not been made, and

(ii) may, on making a claim in accordance with regulations, recover from the Revenue Commissioners an amount equal to the amount deducted.”,

and

“(5)

(a) The Revenue Commissioners shall make regulations providing generally as to administration of this section and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision—

(i) that a claim under subsection (3)(b)(ii) by an authorised insurer, which has registered with the Revenue Commissioners for the purposes of making such a claim, shall—

(I) be made in such form and manner,

(II) be made at such time, and

(III) be accompanied by such documents,

as provided for in the regulations;

(ii) for the making of annual information returns by authorised insurers, in such form (including electronic form) and manner as may be prescribed, and containing specified details in relation to—

(I) each individual making payments to such insurers under relevant contracts in a year of assessment,

(II) the total amount of premiums paid under a relevant contract by that individual in the year of assessment, and

(III) the total amount deducted by that individual under subsection (3)(a);

and

(iii) for the furnishing of information to the Revenue Commissioners for the purposes of the regulations.

(b) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(6)

(a) Where any amount is paid to an authorised insurer by the Revenue Commissioners as an amount recoverable by virtue of subsection (3)(b)(ii) but is an amount to which that authorised insurer is not entitled, that amount shall be repaid by the authorised insurer.

(b) There shall be made such assessments, adjustments or set-offs as may be required for securing repayment of the amount referred to in paragraph (a) and the provisions of this Act relating to the assessment, collection and recovery of income tax shall, in so far as they are applicable and with necessary modification, apply in relation to the recovery of such amount.”.

(2) Notwithstanding any other provision to the contrary, in relation to the year of assessment 2001 an individual shall be entitled to relief under section 470 of the Principal Act in respect of premiums paid to an authorised insurer under a relevant contract both in that year and in the year preceding that year of assessment.

(3) Schedule 29 to the Principal Act is amended in column 1 by the insertion after “section 121” of “section 470 and Regulations under that section”.

20 Relief for premiums under qualifying long-term care policies, etc.

20.—The Principal Act is amended—

(a) in Chapter 1 of Part 15—

(i) by the insertion in Part 2 of the Table to section 458 of “Section 470A” after “Section 470”, and

(ii) by the insertion of the following after section 470:


	“Relief for premiums under qualifying long-term care policies.	470A.—(1) In this section— ‘activities of daily living’ means one or more of the following, that is to say, washing, dressing, feeding, toileting, mobility and transferring; ‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year; ‘long-term care services’ means necessary diagnostic, preventive, therapeutic, curing, treating, mitigating and rehabilitative services and maintenance or personal care services carried out by or on the advice of a practitioner; ‘maintenance or personal care services’ means any care the primary purpose of which is the provision of needed assistance with any of the disabilities as a result of which an individual is a relevant individual (including protection from threats to health and safety due to severe cognitive impairment); ‘mobility’ means the ability to move indoors from room to room on level surfaces; ‘policy’ means a policy of insurance; ‘PPS Number’, in relation to an individual, means that individual's Personal Public Service Number within the meaning of section 223 of the Social Welfare (Consolidation) Act, 1993; ‘practitioner’ means any person who is registered in the register established under section 26 of the Medical Practitioners Act, 1978, or, in relation to long-term care services provided outside the State, is entitled under the laws of the territory in which such services are provided to practice medicine there; ‘qualifying individual’ in relation to an individual and a qualifying long-term care policy, means— (a) the individual, (b) the spouse or a child of the individual, or (c) a relative of the individual or of the spouse of the individual; ‘qualifying insurer’ means, subject to subsection (2), the holder of— (i) an authorisation issued by the Minister for Enterprise, Trade and Employment under the European Communities (Life Assurance) Regulations of 1984 (S.I. No. 57 of 1984) as amended, or (ii) an authorisation granted by the authority charged by law with the duty of supervising the activities of insurance undertakings in a Member State of the European Communities, other than the State, in accordance with Article 6 of Directive No. 79/267/EEC¹, who is carrying on the business of life assurance in the State, or (iii) an official authorisation to undertake insurance in Iceland, Liechtenstein and Norway pursuant to the EEA Agreement within the meaning of the European Communities (Amendment) Act, 1993, and who is carrying on the business of life assurance in the State; ‘qualifying long-term care policy’ means a policy which provides for the discharge or reimbursement of expenses of long-term care services for a relevant individual and which, in accordance with the provisions of this section, is approved of by the Revenue Commissioners for the purposes of this section; ‘relative’, in relation to an individual or the spouse of the individual, includes a relation by marriage and a person in respect of whom the individual is or was the legal guardian; ‘relevant individual’, in relation to a qualifying long-term care policy, means a qualifying individual in relation to that policy in respect of whom a practitioner has certified that the individual is— (a) unable to perform (without substantial assistance from another individual) at least 2 of the activities of daily living for a period of at least 90 days due to a loss of functional capacity, or (b) requires substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment; ‘transferring’ means the ability to move from a bed to an upright chair or a wheelchair and vice versa. (2) (a) A person shall not be a qualifying insurer until such time as the person has been entered in a register maintained by the Revenue Commissioners for the purposes of this section and any regulations made thereunder. (b) Where at any time a qualifying insurer— (i) is not resident in the State, or (ii) is not carrying on business in the State through a fixed place of business, the qualifying insurer shall ensure that there is a person resident in the State and appointed by the qualifying insurer to be responsible for the discharge of all the duties and obligations imposed on the qualifying insurer by this section and any regulations made thereunder. (c) Where a qualifying insurer appoints a person in accordance with paragraph (b), that insurer shall advise the Revenue Commissioners of the identity of that person and the fact of the person's appointment. (3) (a) The Revenue Commissioners shall not approve a policy for the purposes of this section unless they are satisfied that— (i) the only benefits provided under the policy are the discharge or reimbursement of expenses of long-term care services in respect of an individual who is a relevant individual in relation to the policy, (ii) the policy is either not expressed to be terminable by the insurer under the terms of the policy, or is expressed to be so terminable only in special circumstances mentioned in the policy, (iii) the policy secures that for the purposes of the policy the question of whether an individual is a relevant individual shall be determined by reference to at least 5 activities of daily living, (iv) subject to paragraph (b), the policy does not provide for— (I) a lump sum payment on termination, (II) a cash surrender value, or (III) any other money, that can be paid or assigned to any person, borrowed, or pledged as collateral for a loan, and (v) the policy is not connected with any other policy. (b) A policy shall not fail to meet the requirements of paragraph (a)(iv) merely because it provides for the payment of periodic amounts of money without regard to the expenses incurred on the services provided during the period to which the payments relate. (c) A policy is connected with another policy, whether held by the same person or another person, if— (i) either policy was issued in respect of an assurance made with reference to the other, or with a view to enabling the other to be made on particular terms, or with a view to facilitating the making of the other on particular terms, and (ii) the terms on which either policy was issued would have been different if the other policy had not been issued. (4) (a) A long-term care policy shall be a qualifying long-term care policy within the meaning of this section if it conforms with a form which at the time it is issued is either— (i) a standard form approved by the Revenue Commissioners as a standard form of qualifying long-term care policy, or (ii) a form varying from a standard form so approved in no other respects than by making such alterations to that standard form as are, at the time the policy is issued, approved by the Revenue Commissioners as being compatible with a qualifying long-term care policy when made to that standard form and satisfying any conditions subject to which the alterations are so approved. (b) In approving a policy, or a standard form of a policy, as a qualifying long-term care policy for the purposes of this section, the Revenue Commissioners may disregard any provision of the policy which appears to them insignificant. (5) Where, for any year of assessment, an individual, who is resident in the State, makes a payment to a qualifying insurer in respect of a premium under a qualifying long-term care policy, the beneficiary of which is a qualifying individual in relation to the individual, the individual making the payment shall, subject to the condition specified in subsection (6), be entitled to relief under this section in accordance with subsection (8). (6) The condition specified in this subsection is that, at the time the long-term care policy is entered into, the individual (in this subsection referred to as the ‘declarer’) furnishes to the qualifying insurer a declaration in writing which— (a) is made and signed by the declarer, (b) is made in such form as may be prescribed or authorised by the Revenue Commissioners, (c) contains the declarer's full name, the address of his or her permanent residence and his or her PPS Number, (d) declares that— (i) at the time the declaration is made that he or she is resident in the State, and (ii) the beneficiary under the policy is a qualifying individual in relation to the declarer, and (e) contains an undertaking that if, at any time while the long-term care policy is in force, the declarer ceases to be resident in the State he or she will notify the qualifying insurer accordingly. (7) (a) A qualifying insurer shall— (i) keep and retain for the longer of the following periods— (I) a period of 6 years, and (II) a period which, in relation to the long-term care policy in respect of which the declaration is made, ends not later than 3 years after the date on which premiums have ceased to be paid or payable in respect of the policy. all declarations of the kind mentioned in subsection (6) which have been made in respect of qualifying long-term care policies issued by the qualifying insurer, and (ii) on being so required by notice given to that insurer in writing by an inspector, make available within the State to the inspector, within the time specified in the notice, all or any of the declarations of the kind mentioned in subsection (6). (b) The inspector may examine or take extracts from or copies of any declarations made available to him or her under paragraph (a). (8) (a) Where an individual makes a payment to a qualifying insurer in respect of which he or she is entitled to relief under this section, the individual shall be entitled to deduct and retain out of the payment an amount equal to the appropriate percentage for the year of assessment in which payment of the premium falls due. (b) The qualifying insurer to whom a payment referred to in paragraph (a) is made— (i) shall accept the amount paid after deduction in discharge of the individual's liability to the same extent as if the deduction had not been made, and (ii) may, on making a claim in accordance with regulations, recover from the Revenue Commissioners an amount equal to the amount deducted. (9) (a) The Revenue Commissioners shall make regulations providing generally as to administration of this section and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision— (i) for the registration of persons as qualifying insurers for the purposes of this section and those regulations, (ii) that a claim under subsection (8)(b)(ii) by a qualifying insurer shall— (I) be made in such form and manner, (II) be made at such time, and (III) be accompanied by such documents, as provided for in the regulations, (iii) for the making of annual information returns by qualifying insurers, in such form (including electronic form) and manner as may be prescribed, and containing specified details in relation to— (I) each individual making payments to such insurers under qualifying long-term care policies in a year of assessment, (II) the total amount of premiums paid under a qualifying long-term care policy by that individual in the year of assessment, and (III) the total amount deducted by that individual under subsection (8)(a), and (iv) for the furnishing of information to the Revenue Commissioners for the purposes of the regulations. (b) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annualling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder. (10) (a) Where any amount is paid to a qualifying insurer by the Revenue Commissioners as an amount recoverable by virtue of subsection (8)(b)(ii) but is an amount to which that qualifying insurer is not entitled, that amount shall be repaid by the qualifying insurer. (b) There shall be made such assessments, adjustments or set-offs as may be required for securing repayment of the amount referred to in paragraph (a) and the provisions of this Act relating to the assessment, collection and recovery of income tax shall, in so far as they are applicable and with necessary modification, apply in relation to the recovery of such amount. (11) Where relief is given under this section in respect of a payment, relief shall not be given under any other provision of the Income Tax Acts in respect of that payment. (12) The Revenue Commissioners may nominate any of their officers, including an inspector, to perform any acts and discharge any functions authorised by this section, other than those specified in subsection (9), to be performed or discharged by them.”,

(b) in Chapter 1 of Part 44, by the substitution in section 1024(2)(a) of the following for subparagraph (vi):

“(vi) relief under sections 470, 470A and 473, to the husband or to the wife according as he or she made the payment giving rise to the relief;”,

and

(c) in Schedule 29, by the insertion, in column 1, after “section 121” of “section 470A and Regulations under that section”.

21 Taxation of certain perquisites.

21.—As respects the year of assessment 2001 and subsequent years of assessment, the Principal Act is amended in Chapter 1 of Part 5 by the insertion of the following section after section 112:

“112A.—(1) In this section—

‘appropriate percentage’, ‘authorised insurer’, ‘relevant contract’ and ‘relievable amount’ have the same meanings, respectively, as in section 470, and

‘qualifying insurer’ and ‘qualifying long-term care policy’ have the same meanings, respectively, as in section 470A.
(2) Section 112 shall apply in relation to a perquisite comprising the payment to—

(a) an authorised insurer under a relevant contract, or

(b) a qualifying insurer under a qualifying long-term care policy

as if any deduction authorised by—
- (i) in a case in which paragraph (*a*) applies, section 470(3)(*a*), or

- (ii) in a case in which paragraph (*b*) applies, section 470A(8)(*a*),

  had not been made.
(3) Where, for any year of assessment, an employer (within the meaning of section 983)—

(a) makes a payment of emoluments consisting of a perquisite of the kind mentioned in subsection (2), and

(b) deducts therefrom and retains in accordance with—

(i) section 470(3)(a), an amount equal to the appropriate percentage for the year of assessment of the relievable amount in relation to the payment, or

(ii) section 470A(8)(a), an amount equal to the appropriate percentage for the year of assessment of the payment,

the employer shall be assessed and charged to income tax in an amount equal to the amount so deducted and retained and that amount shall be allowable as a deduction in charging to tax the profits or gains of such employer.

(4) Subsections (3) to (6) of section 238 shall apply, with necessary modifications, in relation to a payment referred to in subsection (3) as they apply in relation to a payment to which that section applies.”.

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

22.—(1) As respects the year of assessment 2001 and subsequent years of assessment, the Principal Act is amended in Chapter 4 of Part 38 by the insertion of the following after section 904D (inserted by the Finance Act, 2000):


“Power of inspection: claims by authorised insurers.	904E.—(1) In this section— ‘authorised insurer’ has the same meaning as in section 470; ‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section. (2) An authorised officer may at all reasonable times enter any premises or place of business of an authorised insurer for the purpose of auditing for a year of assessment claims made by the authorised insurer under section 470(3)(b)(ii). (3) Without prejudice to the generality of subsection (2), the authorised officer may— (a) examine the procedures put in place by the authorised insurer in relation to the vouching of claims referred to in that subsection, and (b) check a sample of the cases in respect of which such a claim has been made to determine whether the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate. (4) An authorised officer may require an authorised insurer or an employee of the authorised insurer 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). (5) An authorised officer when exercising or performing his or her powers or duties under this section shall, on request, produce his or her authorisation for the purposes of this section. (6) An employee of an authorised insurer 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. (7) An authorised insurer 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: claims by authorised insurers.

904E.—(1) In this section— ‘authorised insurer’ has the same meaning as in section 470; ‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section. (2) An authorised officer may at all reasonable times enter any premises or place of business of an authorised insurer for the purpose of auditing for a year of assessment claims made by the authorised insurer under section 470(3)(b)(ii). (3) Without prejudice to the generality of subsection (2), the authorised officer may— (a) examine the procedures put in place by the authorised insurer in relation to the vouching of claims referred to in that subsection, and (b) check a sample of the cases in respect of which such a claim has been made to determine whether the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate. (4) An authorised officer may require an authorised insurer or an employee of the authorised insurer 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). (5) An authorised officer when exercising or performing his or her powers or duties under this section shall, on request, produce his or her authorisation for the purposes of this section. (6) An employee of an authorised insurer 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. (7) An authorised insurer 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.”.

(2) As respects the year of assessment 2002 and subsequent years of assessment, section 904E (inserted by subsection (1)) of the Principal Act is amended—

(a) by the substitution in subsection (6) of “€1,265” for “£1,000”, and

(b) by the substitution in subsection (7) of—

(i) “€19,045” for “£15,000”, and

(ii) “€2,535” for “£2,000”.

(3) As respects the year of assessment 2002 and subsequent years of assessment, the Principal Act is amended in Chapter 4 of Part 38 by the insertion of the following after section 904E (inserted by subsection (1)):


“Power of inspection: claims by qualifying lenders.	904F.—(1) In this section— ‘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 a qualifying lender 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 the 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 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 between a qualifying lender and an individual having a qualifying mortgage loan from that qualifying lender; ‘qualifying lender’ and ‘qualifying mortgage loan’ have the same meanings respectively as in section 244A. (2) An authorised officer may at all reasonable times enter any premises or place of business of a qualifying lender for the purpose of auditing for a year of assessment claims made by the qualifying lender under section 244A(2)(b)(ii). (3) Without prejudice to the generality of subsection (2), the authorised officer may— (a) examine the procedures put in place by the qualifying lender in relation to the vouching of claims referred to in that subsection, and (b) check a sample of the cases in respect of which such a claim has been made to determine whether the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate. (4) An authorised officer may require a qualifying lender or an employee of the qualifying lender 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). (5) 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. (6) An authorised officer when exercising or performing his or her powers or duties under this section shall, on request, produce his or her authorisation for the purposes of this section. (7) An employee of a qualifying lender 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 €1,265. (8) A qualifying lender 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 €19,045 and if that failure continues a further penalty of €2,535 for each day on which the failure continues.”.

“Power of inspection: claims by qualifying lenders.

904F.—(1) In this section— ‘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 a qualifying lender 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 the 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 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 between a qualifying lender and an individual having a qualifying mortgage loan from that qualifying lender; ‘qualifying lender’ and ‘qualifying mortgage loan’ have the same meanings respectively as in section 244A. (2) An authorised officer may at all reasonable times enter any premises or place of business of a qualifying lender for the purpose of auditing for a year of assessment claims made by the qualifying lender under section 244A(2)(b)(ii). (3) Without prejudice to the generality of subsection (2), the authorised officer may— (a) examine the procedures put in place by the qualifying lender in relation to the vouching of claims referred to in that subsection, and (b) check a sample of the cases in respect of which such a claim has been made to determine whether the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate. (4) An authorised officer may require a qualifying lender or an employee of the qualifying lender 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). (5) 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. (6) An authorised officer when exercising or performing his or her powers or duties under this section shall, on request, produce his or her authorisation for the purposes of this section. (7) An employee of a qualifying lender 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 €1,265. (8) A qualifying lender 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 €19,045 and if that failure continues a further penalty of €2,535 for each day on which the failure continues.”.

(4) As respects the year of assessment 2001 and subsequent years of assessment, the Principal Act is amended in Chapter 4 of Part 38 by the insertion of the following after section 904F (inserted by subsection (3)):


“Power of inspection: claims by qualifying insurers.	904G.—(1) In this section— ‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section; ‘qualifying insurer’ and ‘qualifying long-term care policies’ have the same meanings respectively as in section 470A. (2) An authorised officer may at all reasonable times enter any premises or place of business of a qualifying insurer for the purpose of auditing for a year of assessment claims made by the qualifying insurer under section 470A(8)(b)(ii). (3) Without prejudice to the generality of subsection (2), the authorised officer may— (a) examine the procedures put in place by the qualifying insurer in relation to the vouching of claims referred to in that subsection, and (b) check a sample of the cases in respect of which such a claim has been made to determine whether the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate. (4) An authorised officer may require a qualifying insurer or an employee of the qualifying insurer 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). (5) An authorised officer when exercising or performing his or her powers or duties under this section shall, on request, produce his or her authorisation for the purposes of this section. (6) An employee of a qualifying insurer 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. (7) A qualifying insurer 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: qualifying savings managers.	904H.—(1) In this section— ‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section; ‘qualifying savings manager’ has the same meaning as in section 848B (inserted by the Finance Act, 2001); ‘special savings incentive account’ has the same meaning as in section 848B (inserted by the Finance Act, 2001). (2) An authorised officer may at all reasonable times enter any premises or place of business of a qualifying savings manager, or a person (in this section referred to as an ‘appointed person’) appointed by a qualifying savings manager in accordance with section 848R (inserted by the Finance Act, 2001), for the purposes of auditing compliance with the provisions of Part 36A (inserted by the Finance Act, 2001) and without prejudice to the generality of the foregoing the authorised officer may— (a) audit the returns made in accordance with sections 848P and 848Q (inserted by the Finance Act, 2001), (b) examine the procedures put in place by the qualifying savings manager, or as the case may be, the appointed person, so as to ensure compliance with the obligations imposed by Part 36A (inserted by the Finance Act, 2001), (c) examine all, or a sample of, special savings incentive accounts to determine— (i) whether those procedures have been observed in practice, (ii) whether the terms under which each such account was commenced and continues, are in accordance with the terms referred to in section 848C (inserted by the Finance Act, 2001), and (iii) whether the qualifying savings manager, in respect of each such account, is, where appropriate, in possession of a declaration referred to in sections 848F, 848I, and 848O (inserted by the Finance Act, 2001), and is not in possession of any information which would reasonably suggest that any such declaration is incorrect, and (d) examine any notice and declaration referred to in section 848N(3) (inserted by the Finance Act, 2001). (3) An authorised officer may require a qualifying savings manager, or (as the case may be) the appointed person, or an employee of either such person, to produce all or any of the records relating to the management by him or her of special savings incentive accounts and 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 subsection (2). (4) An employee of a qualifying savings manager or of an appointed person 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. (5) A qualifying savings manager or an appointed person 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 £15,000 and, if that failure continues, a further penalty of £2,000 for each day on which the failure continues.”.

“Power of inspection: claims by qualifying insurers.

904G.—(1) In this section— ‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section; ‘qualifying insurer’ and ‘qualifying long-term care policies’ have the same meanings respectively as in section 470A. (2) An authorised officer may at all reasonable times enter any premises or place of business of a qualifying insurer for the purpose of auditing for a year of assessment claims made by the qualifying insurer under section 470A(8)(b)(ii). (3) Without prejudice to the generality of subsection (2), the authorised officer may— (a) examine the procedures put in place by the qualifying insurer in relation to the vouching of claims referred to in that subsection, and (b) check a sample of the cases in respect of which such a claim has been made to determine whether the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate. (4) An authorised officer may require a qualifying insurer or an employee of the qualifying insurer 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). (5) An authorised officer when exercising or performing his or her powers or duties under this section shall, on request, produce his or her authorisation for the purposes of this section. (6) An employee of a qualifying insurer 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. (7) A qualifying insurer 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: qualifying savings managers.

904H.—(1) In this section— ‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section; ‘qualifying savings manager’ has the same meaning as in section 848B (inserted by the Finance Act, 2001); ‘special savings incentive account’ has the same meaning as in section 848B (inserted by the Finance Act, 2001). (2) An authorised officer may at all reasonable times enter any premises or place of business of a qualifying savings manager, or a person (in this section referred to as an ‘appointed person’) appointed by a qualifying savings manager in accordance with section 848R (inserted by the Finance Act, 2001), for the purposes of auditing compliance with the provisions of Part 36A (inserted by the Finance Act, 2001) and without prejudice to the generality of the foregoing the authorised officer may— (a) audit the returns made in accordance with sections 848P and 848Q (inserted by the Finance Act, 2001), (b) examine the procedures put in place by the qualifying savings manager, or as the case may be, the appointed person, so as to ensure compliance with the obligations imposed by Part 36A (inserted by the Finance Act, 2001), (c) examine all, or a sample of, special savings incentive accounts to determine— (i) whether those procedures have been observed in practice, (ii) whether the terms under which each such account was commenced and continues, are in accordance with the terms referred to in section 848C (inserted by the Finance Act, 2001), and (iii) whether the qualifying savings manager, in respect of each such account, is, where appropriate, in possession of a declaration referred to in sections 848F, 848I, and 848O (inserted by the Finance Act, 2001), and is not in possession of any information which would reasonably suggest that any such declaration is incorrect, and (d) examine any notice and declaration referred to in section 848N(3) (inserted by the Finance Act, 2001). (3) An authorised officer may require a qualifying savings manager, or (as the case may be) the appointed person, or an employee of either such person, to produce all or any of the records relating to the management by him or her of special savings incentive accounts and 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 subsection (2). (4) An employee of a qualifying savings manager or of an appointed person 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. (5) A qualifying savings manager or an appointed person 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 £15,000 and, if that failure continues, a further penalty of £2,000 for each day on which the failure continues.”.

(5) As respects the year of assessment 2002 and subsequent years of assessment—

(a) section 904G (inserted by subsection (4)) of the Principal Act is amended—

(i) by the substitution in subsection (6) of “€1,265” for “£1,000”, and

(ii) by the substitution in subsection (7) of—

(I) “€19,045” for “£15,000”, and

(II) “€2,535” for “£2,000”,

and

(b) section 904H (inserted by subsection (4)) of the Principal Act is amended—

(i) by the substitution in subsection (4) of “€1,265” for “£1,000”, and

(ii) by the substitution in subsection (5) of—

(I) “€19,045” for “£15,000”, and

(II) “€2,535” for “£2,000”.

23 Tax relief at source for certain interest.

23.—(1) As respects the year of assessment 2002 and subsequent years of assessment, the Principal Act is amended in Chapter 3 of Part 8 by the insertion of the following section after section 244:


“Application of section 244 (relief for interest paid on certain home loans) of Principal Act.	244A.—(1) (a) In this section— (i) ‘qualifying dwelling’, in relation to an individual, means a qualifying residence situated in the State; ‘qualifying lender’ has the meaning assigned to it by subsection (3); ‘qualifying mortgage interest’, in relation to an individual and a year of assessment, means the qualifying interest paid by the individual in the year of assessment in respect of a qualifying mortgage loan; ‘qualifying mortgage loan’, in relation to an individual, means a qualifying loan or loans secured by the mortgage of freehold or leasehold estate or interest in a qualifying dwelling, and (ii) ‘appropriate percentage’, ‘qualifying interest’, ‘qualifying loan’, ‘qualifying residence’ and ‘relievable interest’ have the same meanings, respectively, as they have in section 244. (b) This section provides for a scheme whereby relief due under section 244 shall, in certain circumstances, be given by way of deduction at source (‘the tax relief at source scheme’) under subsection (2)(a) and in no other manner. (2) (a) Where an individual makes a payment of qualifying mortgage interest to a qualifying lender in respect of which relief is due under section 244, the individual shall be entitled in accordance with regulations to deduct and retain out of it an amount equal to the appropriate percentage, for the year of assessment in which the payment is due, of the relievable interest. (b) A qualifying lender to which a payment referred to in paragraph (a) is made— (i) shall accept in accordance with regulations the amount paid after deduction in discharge of the individual's liability to the same extent as if the deduction had not been made, and (ii) may, on making a claim in accordance with regulations, recover from the Revenue Commissioners an amount equal to the amount deducted. (3) The following bodies shall be qualifying lenders— (a) a bank holding a licence under section 9 of the Central Bank Act, 1971; (b) a building society incorporated or deemed to be incorporated under the Building Societies Act, 1989; (c) a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989; (d) ACC Bank plc; (e) a local authority; (f) a body which— (i) (I) holds a licence or similar authorisation, corresponding to a licence referred to in paragraph (a), or (II) has been incorporated in a manner corresponding to that referred to in paragraph (b), under the law of any other Member State of the European Communities, and (ii) provides qualifying mortgage loans; and (g) a body which applies to the Revenue Commissioners for registration as a qualifying lender and in respect of which the Revenue Commissioners, having regard to the activities and objects of the body, are satisfied is entitled to be so registered. (4) (a) The Revenue Commissioners shall maintain, and publish in such manner as they consider appropriate, a register for the purposes of subsection (3). (b) If the Revenue Commissioners are satisfied that an applicant for registration is entitled to be registered, they shall register the applicant with effect from such date as may be specified by them. (c) If it appears to the Revenue Commissioners at any time that a body which is registered under this subsection would not be entitled to be registered if it applied for registration at that time, the Revenue Commissioners may, by written notice given to the body, cancel its registration with effect from such date as may be specified by them in the notice. (d) Any body which is aggrieved by the failure of the Revenue Commissioners to register it or by the cancellation of its registration, may, by notice given to the Revenue Commissioners before the end of the period of 30 days beginning with the date on which the body is notified of the Revenue Commissioners' decision, require the matter to be determined by the Appeal Commissioners and the Appeal Commissioners shall hear and determine the matter in like manner as an appeal. (5) (a) The Revenue Commissioners shall make regulations providing generally as to administration of this section and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision— (i) that a claim under subsection (2)(b)(ii) shall be— (I) made in such form and manner, (II) made at such time, and (III) accompanied by such documents, as provided for in the regulations, (ii) that, in circumstances specified in regulations, a claim may be made under subsection (2)(b)(ii) where a payment is due but not made; (iii) for the making by qualifying lenders, in such form and manner as may be prescribed, of monthly returns containing particulars in relation to— (I) each individual making payments of qualifying mortgage interest, (II) the amount of qualifying mortgage interest paid or due by the individual to date in the year of assessment, (III) the amount deducted by the individual, or the amount he or she would have been entitled to deduct, under subsection (2)(a), (IV) the estimated qualifying mortgage interest to be paid by the individual in the year of assessment, (V) the total amount of qualifying mortgage loans of the qualifying lender outstanding at the date of the return, (VI) the total amount claimed by the qualifying lender under subsection (2)(b)(ii) for the month to which the return relates, (VII) qualifying mortgage loans repaid in full in that month, and (VIII) such other matters as may be specified; (iv) for the transmission by the Revenue Commissioners to qualifying lenders, on a monthly basis, of such details as may be specified in the regulations in relation to— (I) qualifying mortgage loans, and (II) individuals with qualifying mortgage loans, which are necessary for the operation of this section; (v) in relation to the obligations and entitlements of individuals with qualifying mortgage loans under the tax relief at source scheme; (vi) in relation to the obligations and entitlements of qualifying lenders under the tax relief at source scheme; (vii) for deeming of certain qualifying mortgage loans, in such circumstances as may be specified in the regulations, as being no longer entitled to relief under this section; (viii) for the granting of appropriate relief in any case where inadequate or excessive relief has been granted under this section; and (ix) for the implementation of this section where a qualifying lender disposes of all or part of its qualifying mortgage loans. (b) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder. (6) (a) Where any amount is paid to a qualifying lender by the Revenue Commissioners as an amount recoverable by virtue of subsection (2)(b)(ii) but is an amount to which that qualifying lender is not entitled, that amount shall be repaid by the qualifying lender. (b) There shall be made such assessments, adjustments or set-offs as may be required for securing repayment of the amount referred to in paragraph (a) and the provisions of this Act relating to the assessment, collection and recovery of income tax shall, in so far as they are applicable and with necessary modification, apply in relation to the recovery of such amount.”.

“Application of section 244 (relief for interest paid on certain home loans) of Principal Act.

244A.—(1) (a) In this section— (i) ‘qualifying dwelling’, in relation to an individual, means a qualifying residence situated in the State; ‘qualifying lender’ has the meaning assigned to it by subsection (3); ‘qualifying mortgage interest’, in relation to an individual and a year of assessment, means the qualifying interest paid by the individual in the year of assessment in respect of a qualifying mortgage loan; ‘qualifying mortgage loan’, in relation to an individual, means a qualifying loan or loans secured by the mortgage of freehold or leasehold estate or interest in a qualifying dwelling, and (ii) ‘appropriate percentage’, ‘qualifying interest’, ‘qualifying loan’, ‘qualifying residence’ and ‘relievable interest’ have the same meanings, respectively, as they have in section 244. (b) This section provides for a scheme whereby relief due under section 244 shall, in certain circumstances, be given by way of deduction at source (‘the tax relief at source scheme’) under subsection (2)(a) and in no other manner. (2) (a) Where an individual makes a payment of qualifying mortgage interest to a qualifying lender in respect of which relief is due under section 244, the individual shall be entitled in accordance with regulations to deduct and retain out of it an amount equal to the appropriate percentage, for the year of assessment in which the payment is due, of the relievable interest. (b) A qualifying lender to which a payment referred to in paragraph (a) is made— (i) shall accept in accordance with regulations the amount paid after deduction in discharge of the individual's liability to the same extent as if the deduction had not been made, and (ii) may, on making a claim in accordance with regulations, recover from the Revenue Commissioners an amount equal to the amount deducted. (3) The following bodies shall be qualifying lenders— (a) a bank holding a licence under section 9 of the Central Bank Act, 1971; (b) a building society incorporated or deemed to be incorporated under the Building Societies Act, 1989; (c) a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989; (d) ACC Bank plc; (e) a local authority; (f) a body which— (i) (I) holds a licence or similar authorisation, corresponding to a licence referred to in paragraph (a), or (II) has been incorporated in a manner corresponding to that referred to in paragraph (b), under the law of any other Member State of the European Communities, and (ii) provides qualifying mortgage loans; and (g) a body which applies to the Revenue Commissioners for registration as a qualifying lender and in respect of which the Revenue Commissioners, having regard to the activities and objects of the body, are satisfied is entitled to be so registered. (4) (a) The Revenue Commissioners shall maintain, and publish in such manner as they consider appropriate, a register for the purposes of subsection (3). (b) If the Revenue Commissioners are satisfied that an applicant for registration is entitled to be registered, they shall register the applicant with effect from such date as may be specified by them. (c) If it appears to the Revenue Commissioners at any time that a body which is registered under this subsection would not be entitled to be registered if it applied for registration at that time, the Revenue Commissioners may, by written notice given to the body, cancel its registration with effect from such date as may be specified by them in the notice. (d) Any body which is aggrieved by the failure of the Revenue Commissioners to register it or by the cancellation of its registration, may, by notice given to the Revenue Commissioners before the end of the period of 30 days beginning with the date on which the body is notified of the Revenue Commissioners' decision, require the matter to be determined by the Appeal Commissioners and the Appeal Commissioners shall hear and determine the matter in like manner as an appeal. (5) (a) The Revenue Commissioners shall make regulations providing generally as to administration of this section and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision— (i) that a claim under subsection (2)(b)(ii) shall be— (I) made in such form and manner, (II) made at such time, and (III) accompanied by such documents, as provided for in the regulations, (ii) that, in circumstances specified in regulations, a claim may be made under subsection (2)(b)(ii) where a payment is due but not made; (iii) for the making by qualifying lenders, in such form and manner as may be prescribed, of monthly returns containing particulars in relation to— (I) each individual making payments of qualifying mortgage interest, (II) the amount of qualifying mortgage interest paid or due by the individual to date in the year of assessment, (III) the amount deducted by the individual, or the amount he or she would have been entitled to deduct, under subsection (2)(a), (IV) the estimated qualifying mortgage interest to be paid by the individual in the year of assessment, (V) the total amount of qualifying mortgage loans of the qualifying lender outstanding at the date of the return, (VI) the total amount claimed by the qualifying lender under subsection (2)(b)(ii) for the month to which the return relates, (VII) qualifying mortgage loans repaid in full in that month, and (VIII) such other matters as may be specified; (iv) for the transmission by the Revenue Commissioners to qualifying lenders, on a monthly basis, of such details as may be specified in the regulations in relation to— (I) qualifying mortgage loans, and (II) individuals with qualifying mortgage loans, which are necessary for the operation of this section; (v) in relation to the obligations and entitlements of individuals with qualifying mortgage loans under the tax relief at source scheme; (vi) in relation to the obligations and entitlements of qualifying lenders under the tax relief at source scheme; (vii) for deeming of certain qualifying mortgage loans, in such circumstances as may be specified in the regulations, as being no longer entitled to relief under this section; (viii) for the granting of appropriate relief in any case where inadequate or excessive relief has been granted under this section; and (ix) for the implementation of this section where a qualifying lender disposes of all or part of its qualifying mortgage loans. (b) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder. (6) (a) Where any amount is paid to a qualifying lender by the Revenue Commissioners as an amount recoverable by virtue of subsection (2)(b)(ii) but is an amount to which that qualifying lender is not entitled, that amount shall be repaid by the qualifying lender. (b) There shall be made such assessments, adjustments or set-offs as may be required for securing repayment of the amount referred to in paragraph (a) and the provisions of this Act relating to the assessment, collection and recovery of income tax shall, in so far as they are applicable and with necessary modification, apply in relation to the recovery of such amount.”.

(2) Schedule 29 to the Principal Act is amended in column 1 by the insertion after “section 121” of “section 244A and Regulations under that section”.

24 Provision of certain information: transitional.

24.—(1) In this section “qualifying lender” has the same meaning as in section 244A (inserted by this Act) of the Principal Act.

(2)
(a) A qualifying lender shall, on receipt of a request from the Revenue Commissioners, furnish to them the information specified in paragraph (b) in relation to every individual having a loan or loans, secured by the mortgage of freehold or leasehold estate or interest in a dwelling, with that qualifying lender in the year of assessment 2001.

(b) The information referred to in paragraph (a) is as follows—

(i) the name and address of the individual, and

(ii) the account number of the qualifying lender relating to the loan or loans referred to in paragraph (a).

(3) The information referred to in subsection (2) shall be used by the Revenue Commissioners for the purpose of facilitating the granting of relief under section 244A of the Principal Act and shall not be used for any other purpose.

(4) The provisions of section 872 of the Principal Act shall not apply or have effect in relation to information acquired by the Revenue Commissioners under the provisions of this section.

25 Amendment of section 120A (exemption from benefit-in-kind of certain childcare facilities) of Principal Act.

25.—Section 120A of the Principal Act is amended in the definition of “qualifying premises”—

(a) by the substitution in paragraph (b) of “service” for “service, or” and by the insertion in paragraph (c) of “or” after “service,”,

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

“(d) are made available by the employer jointly with other persons or are made available by any other person or persons and the employer is wholly or partly responsible for capital expenditure on the construction or refurbishment of the premises,”,

and

“(3) In the case of a qualifying premises within the meaning of paragraph (d) of the definition of ‘qualifying premises’, the exemption provided for in subsection (2) shall be limited to the amount expended by the employer on capital expenditure on the construction or refurbishment of the premises.”.

26 Amendment of section 669A (interpretation (Chapter 3)) of Principal Act.

26.—Section 669A of the Principal Act is amended by the substitution of the following for paragraph (b) of the definition of “qualifying quota”:

“(b) a milk quota purchased by a lessee who entered into a lease agreement with a lessor 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 of 31 March 1984¹ or Council Regulation (EEC) No. 3950 of 28 December 1992;”.

27 Amendment of section 669C (effect of sale of quota) of Principal Act.

27.—Section 669C of the Principal Act is amended in subsection (2) by the substitution of “chargeable period” for “accounting period.”.

28 Amendment of section 530 (interpretation (Chapter 2)) of Principal Act.

28.—Section 530 of the Principal Act is amended in subsection (1):

(a) by the insertion before the definition of “construction operations” of the following definition:

“‘certified subcontractor’, in relation to a principal, means a subcontractor—

(a) in respect of whom the principal holds, at the time of making a payment under a relevant contract to the subcontractor, a relevant payments card for the year in which the payment is made, and

(b) in respect of whom the principal has not received a notice under paragraph (a) of subsection (13) of section 531;”,

and

(b) by the insertion after the definition of “subcontractor” of the following definition:

“‘uncertified subcontractor’ means a subcontractor who is not a certified subcontractor.”.

29 Relief for fees paid for third level education, etc.

29.—(1) Chapter 1 of Part 15 of the Principal Act, is amended by the insertion of the following after section 473—


“Relief for fees paid for third level education, etc.	473A.—(1) In this section— ‘academic year’, in relation to an approved course, means a year of study commencing on a date not earlier than the 1st day of August in a year of assessment; ‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year; ‘approved college’, in relation to a year of assessment, means— (a) a college or institution of higher education in the State which— (i) provides courses to which a scheme approved by the Minister under the Local Authorities (Higher Education Grants) Acts, 1968 to 1992, applies, or (ii) operates in accordance with a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister, and which the Minister approves for the purposes of this section; (b) any university or similar institution of higher education in a Member State of the European Union (other than the State) which— (i) is maintained or assisted by recurrent grants from public funds of that or any other Member State of the European Union (including the State), or (ii) is a duly accredited university or institution of higher education in the Member State in which it is situated; (c) a college or institution in another Member State of the European Union providing distance education in the State, which— (i) provides courses to which a scheme approved by the Minister under the Local Authority (Higher Education Grants) Acts, 1968 to 1992, applies, or (ii) operates in accordance with a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister, and which the Minister approves for the purposes of this section; (d) any university or similar institution of higher education in any country, other than the State or a Member State of the European Union which— (i) is maintained or assisted by recurrent grants from public funds of that country, or (ii) is a duly accredited university or institution of higher education in the country in which it is situated; ‘approved course’ means— (a) a full-time or part-time undergraduate course of study provided by a college to which paragraph (a), (b) or (c) of the definition of ‘approved college’ relates which— (i) is of at least 2 academic years' duration, and (ii) in the case of a course provided by a college to which paragraph (a)(ii) or (c)(ii) of the definition of ‘approved college’ relates, the Minister, having regard to a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister in relation to the quality of education to be offered on such approved course, approves of for the purposes of this section; (b) a postgraduate course of study leading to a postgraduate award, based on a thesis or on the results of an examination or both, in an approved college— (i) of not less than one academic year, but not more than 4 academic years, in duration, (ii) that requires an individual, undertaking the course, to have been conferred with a degree or an equivalent qualification, and (iii) that, in the case of a course provided by a college to which paragraph (a)(ii) of the definition of ‘approved college’ relates, the Minister, having regard to any code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister in relation to the quality of education to be offered on such approved course, approves for the purposes of this section; ‘dependant’, in relation to an individual, means a spouse or child of the individual or a person in respect of whom the individual is or was the legal guardian; ‘the Minister’ means the Minister for Education and Science; ‘qualifying fees’, in relation to an approved course and an academic year, means the amount of fees chargeable in respect of tuition to be provided in relation to that course in that year which, with the consent of the Minister for Finance, the Minister approves of for the purposes of this section. (2) Subject to this section, where an individual for a year of assessment proves that he or she has, on his or her own behalf or on behalf of his or her dependant, made a payment in respect of qualifying fees in respect of an approved course for the academic year in relation to that course commencing in that year of assessment, the income tax to be charged on the individual for that year of assessment, other than in accordance with section 16(2), shall be reduced by an amount which is the lesser of— (a) the amount equal to the appropriate percentage of the aggregate of all such payments proved to be so made, and (b) the amount which reduces that income tax to nil. (3) In the case of an individual who is a married person assessed to tax for a year of assessment in accordance with section 1017, any payment in respect of qualifying fees made by the individual's spouse shall, except where section 1023 applies, be deemed to have been made by the individual. (4) For the purposes of this section, a payment in respect of qualifying fees shall be regarded as not having been made in so far as any sum in respect of, or by reference to, such fees has been or is to be received, directly or indirectly, by the individual, or, as the case may be, his or her dependant, from any source whatever by means of grant, scholarship or otherwise. (5) (a) Where the Minister is satisfied that an approved college, within the meaning of paragraph (a)(ii) or (c)(ii) of the definition of ‘approved college’, or an approved course in that college, no longer meets the appropriate code of standards laid down, the Minister may by notice in writing given to the approved college withdraw, with effect from the year of assessment following the year of assessment in which the notice is given, the approval of that college or course, as the case may be, for the purposes of this section. (b) Where the Minister withdraws the approval of any college or course for the purposes of this section, notice of its withdrawal shall be published as soon as may be in Iris Oifigiúil. (6) Any claim for relief under this section made by an individual in respect of fees paid to an approved college shall be accompanied by a statement in writing made by the approved college concerned stating each of the following, namely— (a) that the college is an approved college for the purposes of this section, (b) the details of the course undertaken by the individual or his or her dependant, (c) the duration of the course, and (d) the amount of the fees paid in respect of the course. (7) Where for the purposes of this section any question arises as to whether— (a) a college is an approved college, or (b) a course of study is an approved course, the Revenue Commissioners may consult with the Minister. (8) On or before 1 July in each year of assessment, the Minister shall furnish the Revenue Commissioners with full details of— (a) all colleges and courses in respect of which approval has been granted and not withdrawn for the purposes of this section, and (b) the amount of the qualifying fees in respect of each such course for the academic year commencing in that year of assessment.”.

“Relief for fees paid for third level education, etc.

473A.—(1) In this section— ‘academic year’, in relation to an approved course, means a year of study commencing on a date not earlier than the 1st day of August in a year of assessment; ‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year; ‘approved college’, in relation to a year of assessment, means— (a) a college or institution of higher education in the State which— (i) provides courses to which a scheme approved by the Minister under the Local Authorities (Higher Education Grants) Acts, 1968 to 1992, applies, or (ii) operates in accordance with a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister, and which the Minister approves for the purposes of this section; (b) any university or similar institution of higher education in a Member State of the European Union (other than the State) which— (i) is maintained or assisted by recurrent grants from public funds of that or any other Member State of the European Union (including the State), or (ii) is a duly accredited university or institution of higher education in the Member State in which it is situated; (c) a college or institution in another Member State of the European Union providing distance education in the State, which— (i) provides courses to which a scheme approved by the Minister under the Local Authority (Higher Education Grants) Acts, 1968 to 1992, applies, or (ii) operates in accordance with a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister, and which the Minister approves for the purposes of this section; (d) any university or similar institution of higher education in any country, other than the State or a Member State of the European Union which— (i) is maintained or assisted by recurrent grants from public funds of that country, or (ii) is a duly accredited university or institution of higher education in the country in which it is situated; ‘approved course’ means— (a) a full-time or part-time undergraduate course of study provided by a college to which paragraph (a), (b) or (c) of the definition of ‘approved college’ relates which— (i) is of at least 2 academic years' duration, and (ii) in the case of a course provided by a college to which paragraph (a)(ii) or (c)(ii) of the definition of ‘approved college’ relates, the Minister, having regard to a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister in relation to the quality of education to be offered on such approved course, approves of for the purposes of this section; (b) a postgraduate course of study leading to a postgraduate award, based on a thesis or on the results of an examination or both, in an approved college— (i) of not less than one academic year, but not more than 4 academic years, in duration, (ii) that requires an individual, undertaking the course, to have been conferred with a degree or an equivalent qualification, and (iii) that, in the case of a course provided by a college to which paragraph (a)(ii) of the definition of ‘approved college’ relates, the Minister, having regard to any code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister in relation to the quality of education to be offered on such approved course, approves for the purposes of this section; ‘dependant’, in relation to an individual, means a spouse or child of the individual or a person in respect of whom the individual is or was the legal guardian; ‘the Minister’ means the Minister for Education and Science; ‘qualifying fees’, in relation to an approved course and an academic year, means the amount of fees chargeable in respect of tuition to be provided in relation to that course in that year which, with the consent of the Minister for Finance, the Minister approves of for the purposes of this section. (2) Subject to this section, where an individual for a year of assessment proves that he or she has, on his or her own behalf or on behalf of his or her dependant, made a payment in respect of qualifying fees in respect of an approved course for the academic year in relation to that course commencing in that year of assessment, the income tax to be charged on the individual for that year of assessment, other than in accordance with section 16(2), shall be reduced by an amount which is the lesser of— (a) the amount equal to the appropriate percentage of the aggregate of all such payments proved to be so made, and (b) the amount which reduces that income tax to nil. (3) In the case of an individual who is a married person assessed to tax for a year of assessment in accordance with section 1017, any payment in respect of qualifying fees made by the individual's spouse shall, except where section 1023 applies, be deemed to have been made by the individual. (4) For the purposes of this section, a payment in respect of qualifying fees shall be regarded as not having been made in so far as any sum in respect of, or by reference to, such fees has been or is to be received, directly or indirectly, by the individual, or, as the case may be, his or her dependant, from any source whatever by means of grant, scholarship or otherwise. (5) (a) Where the Minister is satisfied that an approved college, within the meaning of paragraph (a)(ii) or (c)(ii) of the definition of ‘approved college’, or an approved course in that college, no longer meets the appropriate code of standards laid down, the Minister may by notice in writing given to the approved college withdraw, with effect from the year of assessment following the year of assessment in which the notice is given, the approval of that college or course, as the case may be, for the purposes of this section. (b) Where the Minister withdraws the approval of any college or course for the purposes of this section, notice of its withdrawal shall be published as soon as may be in Iris Oifigiúil. (6) Any claim for relief under this section made by an individual in respect of fees paid to an approved college shall be accompanied by a statement in writing made by the approved college concerned stating each of the following, namely— (a) that the college is an approved college for the purposes of this section, (b) the details of the course undertaken by the individual or his or her dependant, (c) the duration of the course, and (d) the amount of the fees paid in respect of the course. (7) Where for the purposes of this section any question arises as to whether— (a) a college is an approved college, or (b) a course of study is an approved course, the Revenue Commissioners may consult with the Minister. (8) On or before 1 July in each year of assessment, the Minister shall furnish the Revenue Commissioners with full details of— (a) all colleges and courses in respect of which approval has been granted and not withdrawn for the purposes of this section, and (b) the amount of the qualifying fees in respect of each such course for the academic year commencing in that year of assessment.”.

(2) Chapter 1 of Part 15 of the Principal Act is further amended by the deletion in Part 2 of the Table to section 458 of “section 474”, “section 474A”, “section 475” and “section 475A” and by the insertion of “section 473A” after “section 473”.

(3) Sections 474, 474A, 475 and 475A of the Principal Act, are repealed.

30 Seafarer allowance, etc.

30.—Section 472B of the Principal Act is amended—

(a) in subsection (4)—

(i) as respects the year of assessment 2001, by the substitution of “125 days” and “£3,700” for “169 days” and “£5,000”, respectively, and

(ii) as respects the year of assessment 2002 and subsequent years of assessment, by the substitution of “€6,350” for “£5,000”,

and

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

“(4A)

(a) Notwithstanding subsection (4), but subject to paragraph (b)—

(i) as respects the year of assessment 2001, the reference in that subsection to ‘125 days’ shall be construed as a reference to ‘119 days’, and

(ii) as respects the year of assessment 2002 and subsequent years of assessment, the reference in that subsection to ‘169 days’ shall be construed as a reference to ‘161 days’.

(b) Paragraph (a) shall come into operation on such day as the Minister for Finance may by order appoint.”.

31 Amendment of section 823 (deduction for income earned outside the State) of Principal Act.

31.—(1) Section 823 of the Principal Act is amended—

(a) in subsection (1)—

(i) by the substitution of the following for the definition of “qualifying day”:

“‘qualifying day’, in relation to an office or employment of an individual, means a day on or before 31 December 2003 which is one of at least 11 consecutive days throughout the whole of which the individual is absent from the State for the purposes of the performance of the duties of the office or employment or of those duties and the duties of other offices or employments of the individual outside the State and which (taken as a whole) are substantially devoted to the performance of such duties, but no day shall be counted more than once as a qualifying day;”,

and

(ii) in the formula in the definition of “the specified amount”, by the substitution as respects the year of assessment 2001, of “270” for “365”,

and

(b) in subsection (3)—

(i) after “90 days” by the insertion of “or, in the case where subparagraph (i) applies and the year of assessment concerned is the year of assessment 2001, 67 days”, and

(ii) by the substitution as respects the year of assessment 2001, of “£18,500” for “£25,000”.

(2) Subparagraph (a)(i) of subsection (1) shall apply as on and from 26 January 2001.

32 Rent-a-room relief.

32.—(1) The Principal Act is amended in Chapter 1 of Part 7 by the insertion of the following after section 216:

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