FINANCE ACT, 2001

• “(2) Preliminary tax appropriate to a chargeable period shall be due and payable—

  • (a) where the chargeable period is a year of assessment for income tax and subject to subsection (10), on or before 31 October in the year of assessment, or

  • (b) where the chargeable period is an accounting period of a company, within the period of 6 months from the end of the accounting period; but in any case not later than—

    • (i) day 28 of the month in which that period of 6 months ends, or

    • (ii) such earlier day in that month as may be specified by order made by the Minister for Finance,

    and accordingly references in this Part to the due date for the payment of an amount of preliminary tax shall be construed as references to 31 October in the year of assessment, the last day of that period of 6 months, or day 28 (or such earlier day as may be specified by order made by the Minister for Finance) of the month in which that period of 6 months ends, as the case may be.

• (3)

  • (a) Subject to subsections (3A) and (4), tax payable by a chargeable person for a chargeable period shall be due and payable—

    • (i) where an assessment is made on the chargeable person for the chargeable period before the due date for the payment of an amount of preliminary tax for the chargeable period, on or before that date,

    • (ii) where an assessment is made on the chargeable person for the chargeable period before the specified return date for the chargeable period and the chargeable period is a year of assessment for income tax or capital gains tax, on or before that date,

    • (iii) where an assessment has not been made on the chargeable person for the chargeable period, being a year of assessment for income tax or capital gains tax, on or before the specified return date for the chargeable period, or

    • (iv) where the chargeable period is an accounting period of a company, not later than one month from the date on which an assessment is made on the chargeable person for the chargeable period.

  • (b) Where in relation to a chargeable period, being a year of assessment for income tax or capital gains tax, tax payable by a chargeable person for the year of assessment is due and payable in accordance with paragraph (a)(iii), then, tax specified in any subsequent assessment made on the chargeable person for that year shall be deemed to have been due and payable on or before the specified return date for the chargeable period.

• (3A) Subject to subsection (3), where—

  • (a) an assessment to tax has not been made on a chargeable person on or before the specified return date for a chargeable period (being a year of assessment for income tax or capital gains tax), and

  • (b) the chargeable person has—

    • (i) delivered a return for the year of assessment by the specified return date for the chargeable period,

    • (ii) made in the return a full and true disclosure of all material facts necessary for the making of a correct assessment for the year of assessment, and

    • (iii) paid an amount of tax for the year of assessment on or before the specified return date, being an amount which is less than the tax payable by the chargeable person for the year of assessment by not more than the greater of—

      • (I) 5 per cent of the tax payable by that person for that year or £2,500, whichever is the lesser, and

      • (II) £500,

      then, subject to subsection (8), any additional tax payable by the chargeable person for that year shall be due and payable on or before 31 December in the following year of assessment.

• (4) Where but for this subsection tax payable by a chargeable person for a chargeable period would be due and payable in accordance with subsection (3), other than paragraph (a)(i) of that subsection, and—

  • (a) the chargeable person has defaulted in the payment of preliminary tax for the chargeable period,

  • (b) the preliminary tax paid by the chargeable person for the chargeable period is less than, or less than the least of, as the case may be—

    • (i) 90 per cent of the tax payable by the chargeable person for the chargeable period,

    • (ii) (I) where the chargeable period is a year of assessment other than the year of assessment 2001 or 2002, the income tax payable by the chargeable person for the preceding chargeable period,

      • (II) where the chargeable period is the year of assessment 2002, 135 per cent of the income tax payable by the chargeable person for the preceding chargeable period,

      • (III) where the chargeable period is the year of assessment 2001, 74 per cent of the income tax payable by the chargeable person for the preceding chargeable period,

    • (iii) in the case of a chargeable person to whom subsection (10) applies (other than a chargeable person in relation to whom the amount of income tax payable, or taken in accordance with subsection (5)(a) to be payable, for the pre-preceding chargeable period was nil)—

      • (I) where the chargeable period is a year of assessment other than the year of assessment 2001 or 2003, 105 per cent of the income tax payable by the chargeable person for the pre-preceding chargeable period,

      • (II) where the chargeable period is the year of assessment 2003, 142 per cent of the income tax payable by the chargeable person for the pre-preceding chargeable period,

      • (III) where the chargeable period is the year of assessment 2001, 78 per cent of the income tax payable by the chargeable person for the pre-preceding chargeable period,

      or

  • (c) the preliminary tax payable by the chargeable person for the chargeable period was not paid by the date on which it was due and payable,

  the tax payable by the chargeable person shall be deemed to have been due and payable on the due date for the payment of an amount of preliminary tax for the chargeable period.

• (4A) Where—

  • (a) after the due date for the payment of an amount of preliminary tax for a chargeable period (being a year of assessment for income tax), an amount of additional income tax to which subsection (3A) applies is paid for the preceding chargeable period, and

  • (b) an additional amount of preliminary tax (which is not more than the additional amount of income tax so paid) is paid on or before 31 December in the year of assessment such that the total amount of preliminary tax paid by the chargeable person for the chargeable period is not less than the amount specified in subsection (4)(b)(ii),

  then, the additional amount of preliminary tax so paid shall be deemed for the purposes of subsection (4)(b)(ii) to have been paid on the due date for the payment of an amount of preliminary tax for the chargeable period.”,

• (iii) by the insertion after subsection (8) of the following:

• “(8A)

  • (a) Where, in relation to a chargeable period being a year of assessment for income tax, the profits or gains of a corresponding period relating to the preceding year of assessment are taken to be the profits or gains of that preceding year of assessment in accordance with section 65(3), then, notwithstanding that the assessment for that preceding year of assessment has not been amended, any tax payable for that preceding year of assessment which exceeds the tax due and payable for that year without regard to the operation of section 65(3) shall be due and payable on or before the specified return date for the chargeable period.

  • (b) An amount of income tax to which paragraph (a) applies shall not be taken into account for the purposes of subsection (4).

  • (c) Notwithstanding subsection (8), where, in relation to a chargeable period being a year of assessment for income tax, any additional tax for the preceding year of assessment is due and payable by virtue of an amendment of the assessment for that year made in accordance with section 65(3), then, such additional tax as specified in the amendment to the assessment for that year shall be deemed to have been due and payable on or before the specified return date for the chargeable period.”,

and

• (iv) by the substitution for subsection (10) of the following:

• “(10)

  • (a) This subsection shall apply to a chargeable person who authorises the Collector-General to collect preliminary tax by the debiting of the bank account of that person in accordance with paragraph (b) and complies with such conditions as the Collector-General may reasonably impose to ensure that an amount of preliminary tax payable by a chargeable person for a chargeable period will be paid by the chargeable person in accordance with this subsection.

  • (b) Preliminary tax appropriate to a chargeable period where the chargeable period is a year of assessment for income tax shall be due and payable in the case of a chargeable person to whom this subsection applies—

    • (i) as respects the first year of assessment for which the Collector-General is authorised in accordance with paragraph (a) to debit that person's bank account, by way of a minimum of 3 equal monthly instalments in that year, and

    • (ii) as respects any subsequent year of assessment in which the Collector-General is so authorised, by way of a minimum of 8 equal monthly instalments in that year,

    and the Collector-General shall debit the bank account of that person with such instalments on day 9 of each month for which the Collector-General is so authorised.

  • (c) The Collector-General may, in any particular case, in order to facilitate the payment of preliminary tax in accordance with this subsection, agree at the Collector-General's discretion to vary the number of equal monthly instalments to be collected in a year or agree at the Collector-General's discretion to an increase or decrease in the amount to be collected in any subsequent instalment to be made in that year.

  • (d) A chargeable person shall not be treated as having paid an amount of preliminary tax in accordance with this subsection unless that person pays in the year of assessment the monthly instalments due in accordance with paragraph (b) or (c), as appropriate.

  • (e) For the purposes of this section, a chargeable person who pays an amount of preliminary tax appropriate to a chargeable period in accordance with this subsection shall be deemed to have paid that amount of preliminary tax on the due date for the payment of an amount of preliminary tax for the chargeable period.”,

and

• (g) in section 959 by the deletion from subsection (2) of “a notice of preliminary tax bearing the name of the inspector or” and “that notice of preliminary tax shall for the purposes of the Tax Acts and the Capital Gains Tax Acts be deemed to have been given by the inspector to the best of his or her opinion,”.

• (2) The Principal Act is amended as respects the year of assessment 2001 and subsequent years (being years of assessment for income tax and capital gains tax) and as respects accounting periods of companies ending on or after 1 April 2001—

• (a) by the substitution in section 66(3) for “on giving notice in writing to the inspector with the return required under section 951 for the year of assessment” of “on including a claim in that behalf with the return required under section 951 for the year of assessment”,

• (b) by the substitution in section 579D(1) and in the definition of “specified period” in section 629(1) for “when a return under section 951 for the chargeable period is delivered to the appropriate inspector (within the meaning of section 950)” of “when a return under section 951 for the chargeable period is delivered to the Collector-General”,

• (c) by the substitution in section 657(7) for “by notice in writing given to the inspector with the return required under section 951 for the year of assessment” of “on including a claim in that behalf with the return required under section 951 for the year of assessment”.

• (d) by the substitution in paragraph (b) of the definition of “appropriate inspector” in section 894(1) for “a return or statement of income or profits” of “any return, statement, list or declaration”,

• (e) by the substitution in paragraph (a) of the definition of “appropriate inspector” in section 895(1) for “to deliver a return or statement of income or profits” of “to deliver a return, statement, declaration or list by reason of a notice given to the person by the inspector”,

• (f) by the substitution in paragraph (b) of the definition of “appropriate inspector” in section 895(1) for “such return or statement” of “such return, statement, declaration or list”,

• (g) by the substitution in section 909(2) for “to deliver a tax return to an inspector of taxes or to the inspector of returns (within the meaning of section 951(11)), as the case may be, the inspector” of “to deliver a tax return, an inspector of taxes or the inspector of returns (within the meaning of section 951(11)), as the case may be,”, and

• (h) by the substitution in section 1084 for subsection (5) of the following:

• “(5) This section shall apply in relation to an amount of preliminary tax (within the meaning of Part 41) paid under section 952 as it applies to an amount of tax specified in an assessment.”.

• (3) Section 958 of the Principal Act is amended, as respects the year of assessment 2002 and subsequent years, by the substitution in subsection (3A)(b)(iii) (inserted by subsection (1)(f)(ii)) for “£2,500” of “€3,175” and for “£500” of “€635”.

79 Amendment of provisions relating to Dublin Docklands Development Authority.

79.—The Principal Act is amended—

• (a) in section 9(1)—

• (i) by the substitution in paragraph (c) for “company.” of “company,”, and

• (ii) by the insertion of the following after paragraph (c):

• “(d) a ‘wholly-owned subsidiary’ of another company if and so long as 100 per cent of its ordinary share capital is directly owned by that other company.”,

• (b) as respects accounting periods ending on or after 6 April 2001, in paragraph 3 of the Table to section 220 by the substitution for “Authority.” of “Authority and any of its wholly-owned subsidiaries.”, and

• (c) as respects disposals made on or after 6 April 2001, in paragraph 31 of Schedule 15 by the substitution for “Authority.” of “Authority and any of its wholly-owned subsidiaries.”.

80 Amendment of Chapter 10 (designated areas of certain towns) of Part 10 of Principal Act.

80.—(1) Chapter 10 of Part 10 of the Principal Act is amended—

• (a) in section 372AA(1), by the substitution in the definition of “qualifying period” of “31 December 2003” for “31 March 2003”,

• (b) in section 372AB(1)(c), by the substitution of “31 December 2003” for “31 March 2003”,

• (c) in section 372AF(1), by the substitution in paragraph (b) of the definition of “qualifying premises” of “150 square metres” for “125 square metres”,

• (d) in section 372AG(1), by the substitution in paragraph (b) of the definition of “qualifying premises” of “150 square metres” for “125 square metres”,

• (e) in section 372AH(1), by the substitution for paragraph (d) of the definition of “qualifying premises” of the following:

• “(d) the total floor area of which is not less than 38 square metres and not more than—

• (i) in the case where the qualifying expenditure has been incurred on the construction of the qualifying premises, 125 square metres, or

• (ii) in the case where the qualifying expenditure has been incurred on the refurbishment of the qualifying premises, 210 square metres;”,

and

• (f) in section 372AJ(1), by the insertion after paragraph (a) of the following:

• “(aa) in respect of expenditure incurred on or after 6 April 2001 on the construction or refurbishment of a building or structure or a qualifying premises where any part of such expenditure has been or is to be met, directly or indirectly, by grant assistance from the State or from any other person.

• (ab) in respect of expenditure incurred on or after 6 April 2001 on the construction or refurbishment of a building or structure or a qualifying premises unless the relevant interest, within the meaning of section 269, in such expenditure is held by a small or medium-sized enterprise within the meaning of Annex I to Commission Regulation (EC) No. 60/2001 of 12 January 2001¹,

• (ac) in respect of expenditure incurred on or after 6 April 2001 on the refurbishment of a building or structure or a qualifying premises unless—

  • (i) such expenditure does not exceed €800,000,

  • (ii) such expenditure is incurred on a building or structure or qualifying premises in use for the purposes of the retailing of goods or the provision of services only within the State but excluding any building or structure or qualifying premises in use—

    • (I) as offices, or

    • (II) for the provision of mail order or financial services,

    or

  • (iii) in conjunction with such expenditure, expenditure on the construction of an extension to the building or structure or qualifying premises is incurred which amounts to not less than 25 per cent of the market value of the building or structure or qualifying premises, as the case may be, immediately before the expenditure on the construction and refurbishment of the building or structure or qualifying premises was incurred.”.

• (2) Paragraphs (c), (d) and (e) of subsection (1) shall apply as respects expenditure incurred on or after 6 April 2001, being expenditure which is—

• (a) conversion expenditure within the meaning of section 372AF,

• (b) relevant expenditure within the meaning of section 372AG, or

• (c) qualifying expenditure within the meaning of section 372AH,

as the case may be.

81 Capital allowances for hotels.

81.—Section 268 of the Principal Act is amended by the insertion of the following after subsection (10):

• “(11) Notwithstanding any other provision of this section, as respects capital expenditure incurred on or after 20 March 2001, a building or structure in use for the purposes of the trade of hotel-keeping shall not be treated as an industrial building or structure where any part of that expenditure has been or is to be met, directly or indirectly, by grant assistance from the State or from any other person.

• (12) Notwithstanding any other provision of this section, as respects capital expenditure incurred on the construction or refurbishment of a building or structure in respect of which construction or refurbishment first commences on or after 6 April 2001, a building or structure in use for the purposes of the trade of hotel-keeping shall not be treated as an industrial building or structure unless, on the making of an application by the person who incurs the capital expenditure on the construction or refurbishment of the building or structure, Bord Fáilte Éireann gives a certificate in writing to that person, in relation to that expenditure, stating—

  • (a) that sufficient information has been furnished to it as to enable a determination to be made as to whether or not that person is a small or medium-sized enterprise within the meaning of Annex 1 to Commission Regulation (EC) No. 70/2001 of 12 January 2001¹ on the application of Articles 87 and 88 of the European Communities Treaty to State aid to small and medium-sized enterprises, and

  • (b) that such person has undertaken to furnish to the Minister for Finance, or to such other Government Minister, agency or body as may be nominated for that purpose by the Minister for Finance, upon request in writing by that Minister, agency or body, such further information as may be necessary to enable compliance with the reporting requirements of that Regulation or any other European Communities Regulation or Directive under the European Communities Treaty governing the granting of State aid in specific sectors.”.

Chapter 4 Corporation Tax

82 Amendment of provisions relating to a shipping trade.

82.—(1) The Principal Act is amended—

• (a) in section 21 by the insertion after subsection (1) of the following:

• “(1A)

  • (a) In this subsection—

  ‘qualifying shipping activities’ and ‘qualifying shipping trade’ have the same meanings respectively as in section 407;

  • (b) Notwithstanding subsection (1), for the financial year 2001 and 2002, in relation to a company carrying on a qualifying shipping trade, profits from qualifying shipping activities carried on in the course of the qualifying shipping trade shall be charged to corporation tax at the rate of 12½ per cent.”,

and

• (b) in section 407(1) in the definition of “relevant period” by the substitution of “1 January 1987 to 31 December 2002” for “the 1st day of January, 1987, to the 31st day of December, 2000”.

• (2) This section applies as on and from 1 January 2001.

83 Amendment of section 22A (reduction of corporation tax in respect of certain trading income) of Principal Act.

83.—(1) Section 22A of the Principal Act is amended—

• (a) in subsection (2)(b) by the substitution of the following for paragraphs (i) to (iii)—

• (i) as respects an accounting period falling within the financial year 2001, 30 per cent, and

• (ii) as respects an accounting period falling within the financial year, 2002, 14 per cent,”,

and

• (b) in subsection (3) by the substitution of—

• (i) as respects the financial year 2001 “£200,000” for “£50,000” and “£250,000” for “£75,000”, and

• (ii) as respects the financial year 2002 “€254,000” for “£50,000” and “€317,500” for “£75,000”,

in both places where they each occur.

• (2) This section has effect as respects the financial year 2001 and subsequent financial years.

84 Foundation for Investing in Communities.

84.—(1) The Principal Act is amended by the insertion of the following after section 87:

“Deductions for gifts to Foundation for Investing in Communities.

87A.—(1) In this section, ‘the Company’ means the company incorporated on 11 November 1998 as The Foundation for Investing in Communities Limited or any of its 90 per cent subsidiaries as may be approved for the purposes of this section by the Minister for Finance. (2) This section shall apply to a gift of money which— (a) on or before 5 April 2001 is made to the Company and accepted by it, (b) is to be applied by the Company solely for the objects set out in its memorandum of association, (c) apart from subsection (3), would not be deductible in computing for the purposes of corporation tax the profits or gains of a trade or profession, and (d) is not income to which section 792 applies. (3) (a) Subject to paragraph (b) and subsection (2), where a company (in this section referred to as a ‘donor’) makes a gift to which this section applies and claims relief from tax by reference to the gift, the net amount of the gift shall be treated for the purposes of corporation tax as— (i) a deductible trading expense of a trade carried on by the donor, or (ii) an expense of management deductible in computing the total profits of the donor, incurred by it in the accounting period in which the gift is made. (b) In determining for the purposes of paragraph (a) the net amount of the gift, the amount or value of any consideration received by a donor as a result of making the gift, whether received directly or indirectly from the Company or any other person, shall be deducted from the amount of the gift, and relief under this section shall not be given to a donor for an accounting period— (i) if the net amount of the gift (or the aggregate of the net amounts of gifts) made by the donor in that accounting period, being a gift or gifts, as the case may be, to which this section applies, does not exceed £500, (ii) if at the time a donor makes a gift to which this section applies the aggregate of the net amounts of all gifts to which this section applies exceeds £5,000,000. (4) A claim under this section shall be made with the return required to be delivered under section 951 for the accounting period in which the payment is made. (5) Where a donor makes a gift in respect of which relief is not to be given by virtue of subsection (3)(b)(ii), the Company shall, by notice in writing given to the donor within 30 days of the making of the gift, advise the donor accordingly. (6) Where a gift to which this section applies is made by a donor in an accounting period of the donor which is less than 12 months, the amount specified in subsection (3)(b)(i) shall be proportionately reduced.”.

• (2) Subsection (1) shall be deemed to have had effect from 1 August 2000.

• (3) Section 87A (inserted by this section) of the Principal Act is repealed with effect from 6 April 2001.

85 Amendment of section 130 (matters to be treated as distributions) of Principal Act.

85.—(1) Section 130 of the Principal Act is amended by the insertion after subsection (2) of the following:

• “(2A) For the purposes of subsection (2)(d)(iii)(I), the consideration given by the company for the use of the principal received shall not be treated as being to any extent dependent on the results of the company's business or any part of the company's business by reason only of the fact that the terms (however expressed) of the security provide—

  • (a) for the consideration to be reduced in the event of the results improving, or

  • (b) for the consideration to be increased in the event of the results deteriorating.”.

• (2) This section applies to payments made on or after 15 February 2001.

86 Amendment of section 222 (certain dividends from a non-resident subsidiary) of Principal Act.

86.—Section 222 of the Principal Act is amended in subsection (1)(a) in paragraph (i) of the definition of “relevant dividends” by the substitution of “specified in a certificate given before 15 February 2001 by the Minister” for “specified in a certificate given by the Minister”.

87 Amendment of Chapter 2 of Part 14 of Principal Act.

87.—Chapter 2 of Part 14 of the Principal Act is amended by the substitution for section 452 of the following:

“Application of section 130 to certain interest.

452.—(1) (a) In this section— ‘arrangements’ means arrangements having the force of law by virtue of section 826; ‘relevant territory’ means— (i) a Member State of the European Communities other than the State, or (ii) not being such a Member State, a territory with the government of which arrangements have been made; ‘qualified company’ and ‘relevant trading operations’ have the same meanings as they have for the purposes of sections 445 and 446, but trading operations shall not be treated as relevant trading operations (within the meaning of section 445) if they are not trading operations which could be certified by the Minister for Finance as relevant trading operations for the purposes of section 446 if they were carried on in the area (within the meaning of section 446) rather than the airport (within the meaning of section 445); ‘tax’, in relation to a relevant territory, means any tax imposed in that territory which corresponds to corporation tax in the State. (b) For the purposes of this section, a company shall be regarded as being a resident of a relevant territory if— (i) in a case where the relevant territory is a territory with the government of which arrangements have been made, the company is regarded as being a resident of that territory under those arrangements, and (ii) in any other case, the company is by virtue of the law of the relevant territory resident for the purposes of tax in that territory. (2) (a) This paragraph shall apply to so much of any interest as— (i) is a distribution by virtue only of section 130(2)(d)(iv), (ii) is payable by a company in the ordinary course of a trade carried on by that company and would, but for section 130(2)(d)(iv), be deductible as a trading expense in computing the amount of the company's income from the trade, and (iii) is interest payable to a company which is a resident of a relevant territory. (b) Where a company proves that paragraph (a) applies to any interest payable by it for an accounting period and elects to have that interest treated as not being a distribution for the purposes of section 130(2)(d)(iv), then, section 130(2)(d)(iv) shall not apply to that interest. (3) (a) This paragraph shall apply to so much of any interest as— (i) is a distribution by virtue only of section 130(2)(d)(iv), (ii) is payable by a qualified company in the course of carrying on relevant trading operations and would but for section 130 (2)(d)(iv) be deductible as a trading expense in computing the amount of the company's income from the relevant trading operations, and (iii) represents no more than a reasonable commercial return for the use of the principal in respect of which the interest is paid by the qualified company. (b) Where a qualified company proves that paragraph (a) applies to any interest payable by it for an accounting period and elects to have that interest treated as not being a distribution for the purposes of section 130(2)(d)(iv), then, section 130(2)(d)(iv) shall not apply to that interest. (4) An election under subsection (2)(b) or (3)(b) in relation to interest payable by a company for an accounting period shall be made in writing to the inspector and furnished together with the company's return of its profits for the period.”.

88 Amendment of Part 36 of Principal Act.

88.—Part 36 of the Principal Act is amended by the insertion after section 845 of the following:

“Non-application of section 130 in the case of certain interest paid by banks.

845A.—(1) In this section, ‘bank’ means— (a) a person who is a holder of a licence granted under section 9 of the Central Bank Act, 1971, or (b) a person who holds a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under the said section 9. (2) This subsection shall apply to so much of any interest as— (a) is a distribution by virtue only of section 130(2)(d)(iv), (b) is payable by a bank carrying on a bona fide banking business in the State and would but for section 130(2)(d)(iv) be deductible as a trading expense in computing the amount of the bank's income from its banking business, and (c) represents no more than a reasonable commercial return for the use of the principal in respect of which the interest is paid by the bank. (3) Where a bank proves that subsection (2) applies to any interest payable by it for an accounting period and elects to have that interest treated as not being a distribution for the purposes of section 130(2)(d)(iv), then, section 130(2)(d)(iv) shall not apply to that interest. (4) An election under subsection (3) in relation to interest payable by a bank for an accounting period shall be made in writing to the inspector together with the bank's return of its profits for the period.”.

89 Amendment of section 847 (tax relief for certain branch profits) of Principal Act.

89.—Section 847 of the Principal Act is amended in subsection (1) in the definition of “qualified company” by the substitution of “has before 15 February 2001 given a certificate” for “has given a certificate”.

90 Restriction of certain losses and charges.

90.—(1) The Principal Act is amended—

• (a) in Part 8 by the insertion after section 243 of the following:

“Restriction of relevant charges on income.

243A.—(1) In this section— ‘relevant trading charges on income’, in relation to an accounting period of a company, means the charges on income paid by the company in the accounting period wholly and exclusively for the purposes of a trade carried on by the company, other than so much of those charges as are charges on income paid for the purposes of an excepted trade within the meaning of section 21A; ‘relevant trading income’, in relation to an accounting period of a company, means the trading income of the company for the accounting period (not being income chargeable to tax under Case III of Schedule D) other than so much of that income as is income of an excepted trade within the meaning of section 21A. (2) Notwithstanding section 243, relevant trading charges on income paid by a company in an accounting period shall not be allowed as deductions against the total profits of the company for the accounting period. (3) Subject to section 454, where a company pays relevant trading charges on income in an accounting period and, apart from subsection (2), those charges would be allowed as deductions against the total profits of the company for the accounting period, those charges shall be allowed as deductions against— (a) income specified in section 21A(4)(b), and (b) relevant trading income, of the company for the accounting period as reduced by any amount set off against that income under section 396A.”,

• (b) in Part 12—

• (i) by the insertion after section 396 of the following section:

“Relief for relevant trading losses.

396A.—(1) In this section— ‘relevant trading income’ has the same meaning as in section 243A; ‘relevant trading loss’, in relation to an accounting period of a company, means a loss incurred in the accounting period in a trade carried on by the company, other than so much of the loss as is a loss incurred in an excepted trade within the meaning of section 21A. (2) Notwithstanding subsection (2) of section 396, for the purposes of that subsection the amount of a loss in a trade incurred by a company in an accounting period shall be deemed to be reduced by the amount of a relevant trading loss incurred by the company in the accounting period. (3) Subject to section 455, where in an accounting period a company carrying on a trade incurs a relevant trading loss, the company may make a claim requiring that the loss be set off for the purposes of corporation tax against income of the company, being— (a) income specified in section 21A(4)(b), and (b) relevant trading income, of that accounting period and, if the company was then carrying on the trade and if the claim so requires, of preceding accounting periods ending within the time specified in subsection (4), and subject to that subsection and any relief for an earlier relevant trading loss, to the extent that the income of any of those accounting periods consists of or includes income specified in section 21A(4)(b) or relevant trading income, that income shall then be reduced by the amount of the relevant trading loss or by so much of that amount as cannot be relieved against income of a later accounting period. (4) For the purposes of subsection (3), the time referred to in paragraph (b) of that subsection shall be the time immediately preceding the accounting period first mentioned in subsection (3) equal in length to that accounting period; but the amount of the reduction which may be made under subsection (3) in the relevant trading income of an accounting period falling partly before that time shall not exceed such part of that relevant trading income as bears to the whole of the relevant trading income the same proportion as the part of the accounting period falling within that time bears to the whole of that accounting period.”,

and

• (ii) by the insertion after section 420 of the following:

“Group relief: relevant losses and charges

420A.—(1) In this section— ‘relevant trading charges on income’ and ‘relevant trading income’ have the same meanings, respectively, as in section 243A; ‘relevant trading loss’ has the same meaning as in section 396A. (2) Notwithstanding subsections (1) and (6) of section 420 and section 421, where in any accounting period the surrendering company incurs a relevant trading loss or an excess of relevant trading charges on income, that loss or excess may not be set off for the purposes of corporation tax against the total profits of the claimant company for its corresponding accounting period. (3) (a) Subject to section 456, where in any accounting period the surrendering company incurs a relevant trading loss, computed as for the purposes of section 396(2), or an excess of relevant trading charges on income in carrying on a trade in respect of which the company is within the charge to corporation tax, that loss or excess may be set off for the purposes of corporation tax against— (i) income specified in section 21A(4)(b), and (ii) relevant trading income, of the claimant company for its corresponding accounting period as reduced by any amounts allowed as deductions against that income under section 243A or set off against that income under section 396A. (b) Paragraph (a) shall not apply— (i) to so much of a loss as is excluded from section 396(2) by section 396(4) or 663, or (ii) so as to reduce the profits of a claimant company which carries on life business (within the meaning of section 706) by an amount greater than the amount of such profits (before a set off under this subsection) computed in accordance with Case 1 of Schedule D and section 710(1). (4) Group relief allowed under subsection (3) shall reduce the income from a trade of the claimant company for an accounting period— (a) before relief granted under section 397 in respect of a loss incurred in a succeeding accounting period or periods, and (b) after the relief granted under section 396 in respect of a loss incurred in a preceding accounting period or periods. (5) For the purposes of this section in the case of a claim made by a company as a member of a consortium, only a fraction of a relevant trading loss or an excess of relevant trading charges on income may be set off, and that fraction shall be equal to that member's share in the consortium, subject to any further reduction under section 422(2).”,

and

• (c) in Chapter 2 of Part 14—

• (i) in section 448—

• (I) by the substitution of the following for subsections (3) and (4):

• “(3) For the purposes of subsection (2), the ‘income from the sale of those goods’ shall be the amount determined by—

  • (a) firstly, calculating such sum (in this subsection referred to as the ‘relevant sum’) as bears to the amount of the company's income for the relevant accounting period from the sale in the course of the trade mentioned in that subsection of goods and merchandise the same proportion as the amount receivable by the company in the relevant accounting period from the sale in the course of the trade of goods bears to the total amount receivable by the company in the relevant accounting period from the sale in the course of the trade of goods and merchandise, and

  • (b) then, deducting from the relevant sum—

    • (i) the amount of any relief for charges allowed under section 454,

    • (ii) the amount of any relief for a loss in a trade allowed under section 455, and

    • (iii) the amount of any group relief allowed under section 456,

    against income of the trade in the relevant accounting period.

• (4) For the purposes of subsection (3), the ‘company's income for the relevant accounting period from the sale in the course of the trade mentioned in that subsection of goods and merchandise’ shall be determined as an amount equal to—

  • (a) in any case where the income from the trade is derived solely from sales of goods and merchandise, the amount of the company's income from the trade, and

  • (b) in any other case, such amount of the income from the trade as appears to the inspector or on appeal to the Appeal Commissioners to be just and reasonable,

  but shall be so determined as if—

  - (i) no relief for charges had been claimed under section 243A or 454,
  
  - (ii) no relief for a loss in a trade had been claimed under section 396A or 455, and
  
  - (iii) no group relief had been allowed under section 420A or 456,
  
    for the relevant accounting period.”,
  

and

• (II) by the substitution of the following for subparagraph (i) of subsection (5A)(b):

• “(i) by any amounts allowed under sections 243A, 396A, 420A, 454, 455 and 456, and”,

• (ii) by the substitution in section 454 for subsections (2) and (3) of the following:

• “(2) Notwithstanding sections 243 and 243A, charges on income paid for the purposes of the sale of goods by a company in a relevant accounting period in the course of a trade or trades, as the case may be, shall not be allowed as deductions against the total profits, or against the relevant trading income, of the company for the relevant accounting period.

• (3) Charges on income paid for the purposes of the sale of goods by a company in a relevant accounting period which charges on income would, apart from subsection (2) and section 243A(2), be allowed as deductions against the total profits of the company for the accounting period, shall be allowed as deductions against the company's income from the sale of goods, as reduced by any amount set off under section 455, for the accounting period.”,

• (iii) in section 455—

• (I) in subsection (2) by the substitution of “Notwithstanding sections 396(2) and 396A(2) but subject to subsections (6) and (7), for the purposes of those sections” for “Notwithstanding section 396(2) but subject to subsections (6) and (7), for the purposes of that section”, and

• (II) by the deletion of subsection (5),

• (iv) in section 456—

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

• “(2) Notwithstanding subsections (1) and (6) of section 420 and sections 420A(3) and 421, where in any relevant accounting period the surrendering company incurs a loss from the sale of goods or an excess of charges on income paid for the sale of goods, that loss or excess may not be set off for the purposes of corporation tax against the total profits, or against the relevant trading income, of the claimant company for its corresponding accounting period.

• (2A)

  • (a) Where in any relevant accounting period the surrendering company incurs a loss from the sale of goods or an excess of charges on income paid for the sale of goods, that loss or excess may be set off for the purposes of corporation tax against the income from the sale of goods of the claimant company for its corresponding accounting period, as reduced by any amounts—

    • (i) allowed as deductions against that income under section 454, or

    • (ii) set off against that income under section 455.

  • (b) Group relief allowed under paragraph (a) shall reduce the income from a trade of the claimant company for an accounting period—

    • (i) before relief granted under section 397 in respect of a loss incurred in a succeeding accounting period or periods, and

    • (ii) after the relief granted under section 396 in respect of a loss incurred in a preceding accounting period or periods.”,

and

• (II) in subsection (5) by the deletion of paragraph (b),

and

• (v) by the deletion of section 457.

• (2) Subsection (1) applies as respects an accounting period ending on or after 6 March 2001.

• (3) Sections 454, 455 and 456 shall cease to have effect as on and from 1 January 2003.

• (4) For the purposes of this section—

• (a) where an accounting period of a company begins before 6 March 2001 and ends on or after that date, it shall be divided into 2 parts, one beginning on the date on which the accounting period begins and ending on 5 March 2001 and the other beginning on 6 March 2001 and ending on the date on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods of the company, and

• (b) where an accounting period of a company begins before 1 January 2003 and ends on or after that date, it shall be divided into 2 parts, one beginning on the date on which the accounting period begins and ending on 31 December 2002 and the other beginning on 1 January 2003 and ending on the date on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods of the company.

91 Close company surcharges.

91.—(1) Section 434 of the Principal Act is amended—

• (a) in subsection (1)—

• (i) by the substitution of the following for the definition of “distributable income”:

“‘distributable income’ means the aggregate of the amounts of the distributable trading income and distributable estate and investment income;”,

• (ii) by the insertion after the definition of “estate income” of the following:

“‘franked investment income’ excludes—

• (a) a distribution made out of exempt profits within the meaning of section 140,

• (b) a distribution made out of disregarded income within the meaning of section 141 and to which subsection (3)(a) of that section applies, and

• (c) a distribution made out of exempted income within the meaning of section 142;

‘income’ of a company for an accounting period means the income as computed in accordance with subsection (4);”,

and

• (iii) by the insertion of the following after the definition of “investment income”:

“‘relevant charges’, in relation to an accounting period of a company, means charges on income paid in the accounting period by the company and which are allowed as deductions under section 243, other than so much of those charges as is paid for the purposes of an excepted trade within the meaning of section 21A;”,

• (b) in subsection (4)—

• (i) by the substitution of “The income” for “For the purposes of subsection (1), the income”, and

• (ii) by the substitution of the following for paragraphs (g) and (h):

• “(g) any amount which is an allowable deduction against relevant trading income by virtue of section 243A.”,

and

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

• “(5)

  • (a) The estate and investment income of a company for an accounting period shall be the amount by which the sum of—

    • (i) the amount of franked investment income for the accounting period, and

    • (ii) an amount determined by applying to the amount of the income of the company for

    the accounting period the fraction	A
    where—	B

    A is the aggregate of the amounts of estate income and investment income taken into account in computing the income of the company for the accounting period, and

    B is the total amount of income so taken into account,

    exceeds the aggregate of—

    - (I) the amount of relevant charges, and
    
    - (II) the amount which is an allowable deduction in computing the total profits for the accounting period in respect of expenses of management by virtue of section 83(2).
    

  • (b) The trading income of a company for an accounting period shall be the income of the company for the accounting period after deducting—

    • (i) the estate and investment income of the company for the accounting period as computed in accordance with paragraph (a),

    • (ii) where the aggregate of the amounts specified in clauses (I) and (II) of paragraph (a) exceeds the sum of the amounts specified in subparagraphs (i) and (ii) of that paragraph, the amount of the excess, and

    • (iii) charges on income paid for the purposes of an excepted trade within the meaning of section 21A.

• (5A)

  • (a) For the purposes of sections 440 and 441, but subject to paragraph (b)—

  ‘distributable estate and investment income’ of a company for an accounting period means the estate and investment income of the company for the accounting period after deducting the amount of corporation tax which would be payable by the company for the accounting period if the tax were computed on the basis of that income;

  ‘distributable trading income’ of a company for an accounting period means the trading income of the company for the accounting period after deducting the amount of corporation tax which, apart from sections 22A(2) and 448(2), would be payable by the company for the accounting period if the tax were computed on the basis of that income.

  • (b) In the case of a trading company, the distributable estate and investment income for an accounting period shall be the amount determined in accordance with paragraph (a) reduced by 7.5 per cent.”.

• (2) Section 440 of the Principal Act is amended—

• (a) in subsection (1)(a) by the substitution of “distributable estate and investment income” for “aggregate of the distributable investment income and distributable estate income”,

• (b) by the insertion after subsection (2) of the following:

• “(2A) For the purposes of subsection (2)(a), the accumulated undistributed income of a company at the end of an accounting period shall be the aggregate of the undistributed income of the company for accounting periods ending on or before the end of that period computed—

  • (a) in the case of any such accounting period which ended before 14 March 2001, in accordance with section 434 before amendment by the Finance Act, 2001, and

  • (b) in the case of any such accounting periods ending on or after 14 March 2001, in accordance with section 434 as amended by the Finance Act, 2001.”.

• (3) Section 441 of the Principal Act is amended—

• (a) in subsection (4)—

• (i) in paragraph (a) by the substitution of the following for subparagraphs (i) and (ii)—

• “(i) the distributable estate and investment income, and

• (ii) 50 per cent of the distributable trading income,”,

and

• (ii) in paragraph (b)(iii) by the substitution of “distributable estate and investment income” for “aggregate of distributable investment income and the distributable estate income”,

and

• (b) in subsection (6)(b)(ii) by the substitution of “‘distributable estate and investment income’ and ‘distributable trading income’” for “‘distributable income’, ‘distributable investment income’ and ‘distributable estate income’”.

• (4) This section applies as respects an accounting period ending on or after 14 March 2001.

Chapter 5 Capital Gains Tax

92 Amendment of Chapter 6 (transfers of business assets) of Part 19 of Principal Act.

92.—(1) The Principal Act is amended in Chapter 6 of Part 19 by the insertion after section 600 of the following:

“Replacement of qualifying premises.

600A.—(1) In this section— ‘qualifying premises’, in relation to a person, means a building or part of a building, or an interest in a building or a part of a building— (a) in which there is not less than 3 residential units, (b) in respect of which the person is entitled to a rent or to receipts from any easement, and (c) in respect of which all the requirements of the Regulations are complied with; ‘Regulations’ means— (i) the Housing (Standards for Rented Houses) Regulations, 1993 (S.I. No. 147 of 1993), (ii) the Housing (Rent Books) Regulations, 1993 (S.I. No. 146 of 1993), and (iii) the Housing (Registration of Rented Houses) Regulations, 1996, as amended by the Housing (Registration of Rented Houses) (Amendment) Regulations, 2000 (S.I. No. 12 of 2000); ‘replacement premises’, in relation to a person, means a building or part of a building, or an interest in a building or a part of a building— (a) which the person acquires with the consideration obtained by the person from the disposal of a qualifying premises, (b) in which the number of residential units is not less than the number of residential units in the qualifying premises, (c) in respect of which the person is entitled to a rent or to receipts from any easement, and (d) in respect of which all the requirements of the Regulations are complied with; ‘residential unit’ means a separately contained part of a residential premises used or suitable for use as a dwelling. (2) (a) Where the consideration which a person obtains for the disposal of a qualifying premises, which was a qualifying premises throughout the period of its ownership by the person, is applied by that person in acquiring a replacement premises, then the person shall, subject to paragraph (b), be treated for the purposes of the Capital Gains Tax Acts as if the chargeable gain accruing on the disposal of the qualifying premises did not accrue until— (i) that person disposes of the replacement premises, or (ii) the replacement premises ceases to be a replacement premises. (b) Where the consideration for the disposal of the replacement premises is applied by a person in acquiring a further replacement premises then, the person shall be treated as if the chargeable gain accruing on the disposal of the qualifying premises did not accrue until that person disposes of the further replacement premises or any other further replacement premises which are acquired in a similar manner, or that further replacement premises or any other further replacement premises which are acquired in a similar manner, cease to be a replacement premises. (3) Subsection (2) shall not apply if part only of the amount or value of the consideration for the disposal of the qualifying premises is applied as described in that subsection; but if all of the amount or value of the consideration except for a part which is less than the amount of the gain (whether all chargeable or not) accruing on the disposal of the qualifying premises is so applied, then, the person shall on making a claim in that behalf be treated for the purposes of the Capital Gains Tax Acts— (a) as if the amount of the gain accruing on the disposal of the qualifying premises were reduced to the amount of consideration not applied in the acquisition of the replacement premises (and if not all chargeable gain with a proportionate reduction in the amount of the chargeable gain), and (b) in respect of the balance of the gain or chargeable gain as if it did not accrue until that person disposes of the replacement premises or the replacement premises ceases to be a replacement premises. (4) A chargeable gain or the balance of a chargeable gain which under subsection (2) or (3), as may be appropriate, is treated as accruing on a date later than the date of the disposal on which it accrued shall not be so treated for the purposes of section 556. (5) This section shall apply only if the acquisition of the replacement premises takes place, or an unconditional contract for the acquisition is entered into, in the period beginning 12 months before and ending 3 years after the disposal of the qualifying premises, or at such earlier or later time as the Revenue Commissioners may by notice in writing allow; but, where an unconditional contract for the acquisition is so entered into, this section may be applied on a provisional basis without waiting to ascertain whether the replacement premises is acquired in pursuance of the contract, and when that fact is ascertained all necessary adjustments shall be made by making assessments or by repayment or discharge of tax, and shall be so made notwithstanding any limitation in the Capital Gains Tax Acts on the time within which assessments may be made. (6) This section shall not apply if the acquisition of the replacement premises was wholly or partly for the purpose of realising a gain from the disposal of the replacement premises. (7) Where the qualifying premises was not a qualifying premises throughout the period of ownership of a person making a claim under this section, the section shall apply as if a part of the qualifying premises representing the period for which it was a qualifying premises was a separate asset, and this section shall apply in relation to that part subject to any necessary apportionments of consideration for an acquisition or disposal of the interest in the premises. (8) Without prejudice to the provisions of the Capital Gains Tax Acts providing generally for apportionments, where consideration is given for the acquisition or disposal of assets some or part of which are assets in relation to which a claim under subsection (2) or (3) applies, and some or part of which are not, the consideration shall be apportioned in such manner as is just and reasonable.”.

• (2) This section shall apply to disposals on or after 5 January 2001.

93 Amendment of Chapter 7 (other reliefs and exemptions) of Part 19 of Principal Act.

93.—(1) (a) The Principal Act is amended in Chapter 7 of Part 19 by the insertion after section 603 of the following:

“Disposal of site to child.

603A.—(1) This section applies to the disposal of land which at the date of disposal has a market value which does not exceed £200,000. (2) Subject to this section, a chargeable gain shall not accrue on a disposal of land to which this section applies where the disposal— (a) is by a parent to a child of the parent, and (b) is for the purpose of enabling the child to construct a dwelling house on the land which dwelling house is to be occupied by the child as his or her only or main residence. (3) Where a child— (a) at any time disposes of the land or a part of the land referred to in subsection (2), other than to his or her spouse, and (b) the land being disposed of does not contain a dwelling house which— (i) was constructed by the child since the time of acquisition of the land, and (ii) has been occupied by the child as his or her only or main residence for a period of 3 years, the chargeable gain which, but for subsection (2), would have accrued on the disposal of that land to the child, shall be treated as accruing to the child at the time of the disposal referred to in paragraph (a). (4) Where subsection (2) applies to a disposal of land by a parent to a child, it shall not apply to any such subsequent disposal to that child unless, by virtue of subsection (3), the full amount of the chargeable gain which, but for subsection (2) would have accrued to the parent, is treated as accruing to the child.”.

• (b) This subsection shall apply to disposals on or after 6 December 2000.

• (2) With effect from 1 January 2002, section 603A(1) of the Principal Act (as inserted by subsection (1)) is amended by the substitution for “£200,000” of “€254,000”.

94 Amendment of section 649A (relevant disposals: rate of charge) of Principal Act.

94.—Section 649A(1) of the Principal Act is amended—

• (a) by the substitution for paragraphs (a) and (b) of the following:

• “(a) in the case of a relevant disposal made in the period from 3 December 1997 to 30 November 1999, 40 per cent, and

• (b) in the case of a relevant disposal made on or after 1 December 1999, 20 per cent.”,

and

• (b) by the deletion of paragraph (c).

95 Amendment of section 652 (non-application of reliefs on replacement of assets in case of relevant disposals) of Principal Act.

95.—(1) Section 652 of the Principal Act is amended by the substitution for subsection (5) of the following:

• “(5)

  • (a) Subsection (4) shall not apply to a relevant disposal made to an authority possessing compulsory purchase powers where the disposal is made—

    • (i) for the purposes of enabling the authority to construct, widen or extend a road or part of a road, or

    • (ii) for a purpose connected with or ancillary to the construction, widening or extension of a road or part of a road by the authority.

  • (b) Where section 605 applies to a relevant disposal by virtue of this subsection that section shall be construed as if for subsection (4) of that section the following were substituted:

  ‘(4) This section shall apply only if the acquisition of the replacement assets takes place, or an unconditional contract for the acquisition is entered into, in the period beginning 2 years before and ending 8 years after the disposal of the original assets, or at such earlier or later time as the Revenue Commissioners may by notice in writing allow; but, where an unconditional contract for the acquisition is so entered into, this section may be applied on a provisional basis without ascertaining whether the replacement assets are acquired in pursuance of the contract, and when that fact is ascertained all necessary adjustments shall be made by making assessments or by repayment or discharge of tax, and shall be so made notwithstanding any limitation in the Capital Gains Tax Acts on the time within which assessments may be made.’.”.

• (2) This section shall apply to relevant disposals made on or after 6 December 2000.

PART 2 Excise

Consolidation and Modernisation of General Excise Law

Chapter 1 Interpretation, Liability and Payment

96 Interpretation (Part 2).

96.—In this Part, except where the context otherwise requires or where otherwise provided—

“Appeal Commissioners” has the meaning assigned to it by section 850 of the Taxes Consolidation Act, 1997;

“authorised warehousekeeper” means a person authorised by the Commissioners to produce, process, hold, receive or dispatch in the course of his or her business, excisable products as defined in section 97 under a suspension arrangement;

“Commissioners” means the Revenue Commissioners;

“Community” means the territory of the Community as defined by the Treaty establishing the European Community and, in particular, Article 299 of that Treaty except for the following national territories:

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

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

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

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

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

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

• (g) in the case of Finland, the \?\land Islands,

and, for the purposes of this Part, transactions originating in or intended for one of the following national territories are to be treated as originating in or intended for—

• (a) France, in the case of the Principality of Monaco;

• (b) Germany, in the case of Jungholz and Mittelberg (Kleines Walsertal);

• (c) the United Kingdom, in the case of the Isle of Man;

• (d) Italy, in the case of San Marino;

“Directive” means Council Directive No. 92/12/EEC of 25 February 1992¹;

“duty document” has the meaning assigned to it by section 115(2)(c);

“exemption certificate” has the meaning assigned to it by section 117(3);

“free warehouse” has the same meaning as it has in Article 166 of Council Regulation (EEC) No. 2913/92 of 12 October 1992²;

“free zone” has the same meaning as it has in Article 166 of Council Regulation (EEC) No. 2913/92 of 12 October 1992;

“information” includes any representation of fact, whether in legible form or otherwise;

“Member State” means a Member State of the Community;

“mineral oil” shall be construed in accordance with paragraphs (g) and (h) of section 97(1);

“non-registered trader” means a person other than an authorised warehousekeeper or registered trader who may, in the course of his or her business, occasionally receive excisable products from another Member State, subject to compliance with conditions imposed by the Commissioners, under a suspension arrangement;

“non-State vendor” means a person who has his or her place of business in another Member State and who is authorised by the competent authorities of that Member State to sell excisable products which have already been released for consumption in that Member State to private individuals resident in the State for their own personal use, and who dispatches or transports such products directly or indirectly to such persons resident in the State;

“officer”, except in Chapter 4, means an officer of the Commissioners;

“Order of 1975” means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 (S.I. No. 307 of 1975);

“prescribed” means specified in, or determined in accordance with, regulations made by the Commissioners;

“records” means any books, accounts, documents or other recorded information including information in a computer or in other non-legible form;

“registered trader” means a person other than an authorised warehousekeeper, who is authorised by the Commissioners to receive, in the course of business, excisable products from another Member State under a suspension arrangement;

“release for consumption” means—

• (a) any departure, including irregular departure, from a suspension arrangement,

• (b) any manufacture, including irregular manufacture, of excisable products outside a suspension arrangement, or

• (c) any importation of excisable products, including irregular importation, where such excisable products have not been placed under a suspension arrangement;

“small wine producer” means a person in another Member State who produces on average less than 1,000 hectolitres of wine per year and who is exempted by the competent authorities of that Member State under Article 29 of the Directive from the requirements of Titles II and III of the Directive;

“spirits” has the same meaning as it has in paragraph (a) of section 97(1);

“State vendor” means a person who is established in the State and who is authorised by the Commissioners to sell excisable products, which have already been released for consumption in the State, for the personal use of private individuals resident in other Member States, and who dispatches or transports such products, directly or indirectly, to such persons in other Member States;

“suspension arrangement” means an arrangement under which excisable products are produced, processed, held or moved, excise duty being suspended;

“tax representative” means a person, established in the State, who is authorised by the Commissioners to act in the State as an agent on behalf of persons delivering excisable products from another Member State;

“tax warehouse” means a premises or place approved by the Commissioners, where excisable products are produced, processed, held, received or dispatched under a suspension arrangement by an authorised warehousekeeper in the course of business;

“tobacco products” has the same meaning as it has in paragraph (f) of section 97(1);

“vehicle” means a mechanically propelled vehicle or any other conveyance;

“wine” has the same meaning as it has in paragraph (b) of section 97(1).

97 Excisable products (Part 2).

97.—(1) For the purposes of this Part the following are excisable products:

• (a) spirits chargeable with the duty of excise imposed by paragraph 4(2) of the Order of 1975;

• (b) wine chargeable with the duty of excise imposed by paragraph 5(2) of the Order of 1975;

• (c) made wine chargeable with the duty of excise imposed by paragraph 6(2) of the Order of 1975;

• (d) beer chargeable with the duty of excise imposed by section 90 of the Finance Act, 1992;

• (e) cider and perry chargeable with the duty of excise imposed by paragraph 8(2) of the Order of 1975;

• (f) tobacco products chargeable with the duty of excise imposed by section 2 of the Finance (Excise Duty on Tobacco Products) Act, 1977;

• (g) until such day as the Minister for Finance may appoint by order under section 109 of the Finance Act, 1999, for the coming into operation of section 95 of that Act—

• (i) mineral hydrocarbon light oil chargeable with the duty of excise imposed by paragraph 11(1) of the Order of 1975,

• (ii) hydrocarbon oil, not otherwise liable to a duty of excise, chargeable with the duty of excise imposed by paragraph 12(1) of the Order of 1975,

• (iii) gaseous hydrocarbons in a liquid form chargeable with the duty of excise imposed by section 41(1) of the Finance Act, 1976,

• (iv) additives chargeable with the duty of excise imposed by Regulation 23(1) of the European Communities (Customs and Excise) Regulations, 1992 (S.I. 394 of 1992),

• (v) substitute motor fuels chargeable with the duty of excise imposed by section 116(2) of the Finance Act, 1995;

• (h) from such day as the Minister for Finance may appoint by order under section 109 of the Finance Act, 1999, for the coming into operation of section 95 of that Act, mineral oil chargeable with the duty of excise imposed by the said section 95.

• (2) Without prejudice to sections 145 and 146, in the event of any question or dispute the Commissioners shall determine whether a product—

• (a) is properly classified as an excisable product under paragraphs (a) to (h) of subsection (1), or

• (b) while prima facie chargeable with a duty of excise, qualifies in whole or in part for any relief from duty under any provision of the law relating to excise.

98 Application of enactments.