Finance Act 2003

“other fermented beverage”, subject to section 74, means a beverage other than beer and wine exceeding 1.2% vol which—

• (a) has an alcoholic content which is entirely of fermented origin and does not exceed 15% vol, or

• (b) has an alcoholic content which is only partly of fermented origin and which—

• (i) in the case of a still beverage does not exceed 10% vol,

• (ii) in the case of a sparkling beverage does not exceed 13% vol,

and includes any mixture, exceeding 1.2% vol, of such beverage with any non-alcoholic beverage;

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

“production” includes manufacturing, the blending of alcohol products and the blending of any alcohol product with any non-alcoholic beverage or with any other substance, and cognate words shall be construed accordingly;

“prohibited goods” means any machinery, apparatus, equipment, vessel, substance or other thing which is being used, or was used, or is intended to be used in the removal from any alcohol product of any denaturant;

“repealed enactments” has the meaning given in section 83;

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

“sparkling” in relation to any beverage means any such beverage which—

• (a) is contained in bottles with mushroom stoppers held in place by ties or fastenings, or

• (b) which has an excess pressure due to carbon dioxide in solution of three bar or more;

“spirits” means any product which exceeds 1.2% vol and which is—

• (a) distilled ethyl alcohol,

• (b) an alcoholic beverage the full alcohol content of which is the result of a process of distillation,

• (c) any other product falling within CN Code 2207 or 2208, or

• (d) any beverage exceeding 22% vol,

and includes any such product which contains a non-alcoholic product, whether in solution or not;

“still” means other than sparkling;

“tax warehouse” means a premises or place approved by the Commissioners under section 109 of the Finance Act 2001 where alcohol products are produced, processed, held, received or dispatched under a suspension arrangement by an authorised warehousekeeper in the course of business;

“wash” means any wort in which fermentation has begun;

“wine”, subject to section 74, means any beverage exceeding 1.2% vol the alcoholic content of which is entirely of fermented origin—

• (a) obtained from the total or partial fermentation of grapes or the must of fresh grapes,

• (b) not exceeding 15% vol, or in the case of still wine produced without enrichment, not exceeding 18% vol,

and includes such wine flavoured with plants or aromatic extracts and grape must in fermentation or with fermentation prevented or arrested otherwise than by the addition of spirits;

“wort” means the liquid which is intended for fermentation as part of the process of producing spirits;

“% vol” means alcoholic strength by volume which is the ratio, expressed as a percentage, of the volume of alcohol present in a product to the total volume of the product at a temperature of 20° Celsius.

• (2) A word or expression that is used in this Chapter and which is also used in Part 2 of the Finance Act 2001 has, unless a meaning is provided by subsection (1) or the contrary intention otherwise appears, the same meaning in this Chapter as it has in that Part.

• (3) A word or expression that is used in this Chapter and which is also used in the Directive has, unless a meaning is provided by subsection (1) or (2) or the contrary intention otherwise appears, the same meaning in this Chapter as it has in the Directive.

74 Qualification to meanings given to certain alcohol products.

74.—Only a product which is classified—

• (a) under CN Code 2203, or which is a mixture of such product with any non-alcoholic drink covered by CN Code 2206, is beer,

• (b) under CN Code 2204 or 2205, is wine,

• (c) under CN Code 2204, 2205 or 2206, is an other fermented beverage or intermediate beverage.

75 Charging and rates.

75.—(1) In addition to any other duty which may be chargeable, and subject to the provisions of this Chapter and any regulations made under it, a duty of excise, to be known as alcohol products tax, shall be charged, levied and paid at the rates specified in Schedule 2 on all alcohol products—

• (a) produced in the State, or

• (b) imported into the State.

• (2) In the case of spirits produced in the State by a process of distillation, where the quantity of spirits produced by such a process cannot be otherwise determined to the satisfaction of an officer, the Commissioners may charge alcohol products tax on the quantity of alcohol capable of being produced from the wort or wash used in such process, on the assumption that one litre of alcohol is produced for every 8.8 degrees of attenuation, that is to say, for every 8.8 degrees of difference between the highest gravity of the wort and the lowest gravity of the wash before distillation.

76 Liability and payment.

76.—(1) Liability to alcohol products tax shall arise at the time such products are—

• (a) produced in the State,

• (b) imported into the State,

• (c) cease to be held under a suspension arrangement,

whichever is the later.

• (2) The Commissioners may, subject to such conditions for securing the duty as they may prescribe or otherwise impose, permit payment of the duty imposed by section 75 to be deferred to a day not later than the last day of the month succeeding the month in which the duty is payable.

77 Reliefs.

77.—Without prejudice to any other relief from excise duty which may apply, and subject to such conditions as the Commissioners may prescribe or otherwise impose, a relief from alcohol products tax shall be granted on any alcohol products which are shown to the satisfaction of the Commissioners—

• (a) to be intended for use or to have been used in the production of—

• (i) any beverage, other than beer, not exceeding 1.2% vol,

• (ii) vinegar,

• (iii) flavours for the preparation either of foodstuffs or of beverages not exceeding 1.2% vol,

• (iv) medicinal products,

• (v) foodstuffs, whether such alcohol product is used—

• (I) either as a filling in such foodstuff or otherwise,

• (II) either directly or as a constituent of semi-finished products for use in the production of such foodstuff,

and where the alcohol contained in such foodstuffs does not exceed 8.5 litres of alcohol per 100 kilogrammes of the product when used in the production of chocolates and 5 litres of alcohol per 100 kilogrammes of the product when used in the production of other foodstuffs, or

• (vi) beer concentrate,

• (b) to be intended to be denatured in accordance with their requirements, or to have been so denatured,

• (c) to have been denatured in accordance with the requirements of another Member State and used in the production of a product not fit for human consumption,

• (d) to have been completely denatured in accordance with the requirements of another Member State, where such requirements have been notified to the European Commission and accepted in accordance with paragraphs 3 and 4 of Article 27 of the Directive,

• (e) to be intended for use or to have been used for experimental, quality control, scientific or research purposes,

• (f) in the case of wine, beer, or other fermented beverage the alcoholic content of which is entirely of fermented origin, to have been produced solely by a private individual in a private premises for consumption by the producer or by the family or guests of such producer, and not to have been produced or supplied for consideration.

78 Repayment.

78.—(1) In any case of relief under section 77, effect may be given to such relief by means of repayment.

• (2) Subject to such conditions as may be prescribed or otherwise imposed, the Commissioners may remit or repay alcohol products tax on any alcohol products which are shown to their satisfaction—

• (a) to have become spoilt, unfit for human consumption or use or unmarketable by reason of quality, and

• (b) to have been destroyed or otherwise disposed of in accordance with their requirements.

• (3)
• (a) Claims for repayment under this section shall be in such form as the Commissioners may direct and shall be in respect of alcohol products used, destroyed or disposed of, as the case may be, within a period of 3 calendar months.

• (b) A repayment may not be made unless the claim is made within 6 months following the end of each such period of 3 calendar months or within such longer period as the Commissioners may, in any particular case, allow.

79 Offences and penalties.

79.—(1) Except where subsection (3) or (6) applies, it is an offence under this subsection for any person to contravene or fail to comply with any provision of this Chapter or any regulation made under section 81 or any condition imposed under this Chapter or under such regulation in relation to such provision.

• (2) Without prejudice to any other penalty to which a person may be liable, a person convicted of an offence under subsection (1) is liable on summary conviction to a fine of €1,900.

• (3) It is an offence under this subsection—

• (a) without the consent in writing of the Commissioners, to remove or to attempt to remove or to be knowingly concerned in removing or attempting to remove any denaturant from any alcohol product,

• (b) to knowingly deal in any alcohol products from which any such denaturant has been removed, or

• (c) to keep prohibited goods in any premises or on any land.

• (4) Whenever a person, who is the owner or the occupier for the time being of premises or land in or on which prohibited goods are found, is charged in any legal proceedings with contravening subsection (3), the prohibited goods shall, until the contrary is proved, be presumed to have been kept by such person in the said premises, or on the said land (as the case may be), in contravention of that subsection.

• (5) Without prejudice to any other penalty to which a person may be liable, such person convicted of an offence under subsection (3) is liable—

• (a) on summary conviction to a fine of €1,900 or, at the discretion of the Court, to imprisonment for a term not exceeding 12 months, or to both, or

• (b) on a conviction on an indictment, to a fine of €12,695 or, at the discretion of the Court, to imprisonment for a term not exceeding 5 years, or to both.

• (6) It is an offence under this subsection for any person to record in any account, return or other record relating to alcohol products or materials which is required to be kept in accordance with any provision of this Chapter or any regulations under section 81—

• (a) a quantity, strength, or gravity for any alcohol product or materials which is found by an officer taking account to be greater or less than the actual quantity, strength or gravity of such alcohol product or materials, or

• (b) any other particular relevant to the liability of any alcohol product to alcohol products tax which is not true and accurate.

• (7) Subsection (6) does not apply where any discrepancy—

• (a) is accounted for by a loss due to force majeure or by a loss inherent in the nature of the product, or

• (b) is otherwise accounted for to the satisfaction of the Commissioners, and the duty due on the products in question is paid.

• (8) Without prejudice to any other penalty to which a person may be liable a person guilty of an offence under subsection (6) is liable on summary conviction to a fine of €1,900.

• (9) Any alcohol products, materials or prohibited goods in respect of which an offence has been committed under this section are liable to forfeiture.

• (10) Where an offence under this section is committed by a body corporate and the offence is shown to have been committed with the consent or connivance of any person who, when the offence was committed, was a director, manager, secretary or other officer of the body corporate or a member of the committee of management or other controlling authority of the body corporate, that person shall also be deemed to be guilty of an offence and may be proceeded against and punished as if guilty of the first-mentioned offence.

80 Amendments relative to penalties.

80.—Section 34 of the Finance Act 1963 is amended in subsection (6) by the substitution of the following paragraph for paragraph (c):

• “(c) the application of section 13 of the Criminal Procedure Act 1967 to offences under section 186 of the Customs Consolidation Act 1876, section 3 of the Customs Act 1956, any other provision of the Customs Acts, section 119 of the Finance Act 2001 or section 79(3) of the Finance Act 2003.”.

81 Regulations.

81.—(1) The Commissioners may, for the purposes of managing, securing and collecting alcohol products tax or for the protection of the revenue derived from that tax, make regulations.

• (2) In particular, but without prejudice to the generality of subsection (1), regulations made under this section may, in respect of alcohol products, make provision for—

• (a) governing the production, movement, importation, treatment, sale, delivery, warehousing, keeping, storage, removal to and from storage, exportation and use of such products,

• (b) governing the means to be used for determining the strength and quantity of any alcohol product,

• (c) providing for the method of charging, securing, paying, collecting, remitting and repaying alcohol products tax,

• (d) requiring a person who produces or processes alcohol products, or who imports such products, or who holds such products under a suspension arrangement—

• (i) to keep in a specified manner and for a specified period such accounts and other records relating to such production, processing, importation, or holding as may be specified,

• (ii) to furnish, at such times and in such form as may be specified, such information and returns in relation to such products as may be specified,

and

• (e) governing the denaturing of alcohol products.

• (3) Regulations made under this section may make different provisions for—

• (a) different alcohol products and for different types of each alcohol product, and

• (b) persons, premises or products of different classes or descriptions, for different circumstances and for different cases.

82 General provisions.

82.—(1) (a) Subject to paragraph (b) and to subsection (2), the provisions of the Customs Acts and of any instrument relating to duties of customs made under statute and not otherwise applied by this Chapter apply, with any necessary modifications, in relation to alcohol products tax imposed by section 75 on alcohol products imported into the State as they apply in relation to duties of customs.

• (b) Where there is a provision in this Chapter corresponding to a provision of the Customs Acts or of any instrument relating to duties of customs made under statute, the provision of the Customs Acts or of any such instrument does not apply in relation to alcohol products tax.

• (2)
• (a) Subject to paragraph (b), the provisions of the statutes which relate to the duties of excise and the management of those duties and of any instrument relating to the duties of excise made under statute and not otherwise applied by this Chapter apply, with any necessary modifications, in relation to alcohol products tax imposed by section 75 on alcohol products produced in the State or exported to or imported from another Member State, as they apply to duties of excise.

• (b) Where there is a provision in this Chapter corresponding to a provision of the statutes which relate to the duties of excise or of any other instrument relating to the duties of excise made under statute, the provision of those statutes or of any such instrument does not apply in relation to alcohol products tax.

• (3) This Chapter shall be construed—

• (a) so far as it relates to alcohol products tax on such products made in the State or exported to or imported from a Member State, together with the statutes which relate to the duties of excise and the management of those duties and any instruments relating to the duties of excise and the management of those duties made under statute,

• (b) so far as it relates to alcohol products tax on imported products, together with the Customs Acts and any instrument relating to duties of customs made under statute.

83 Repeals and revocations.

83.—(1) The enactments set out in Part 1 and Part 2 of Schedule 1 (in this Chapter referred to as the “repealed enactments”) are repealed in the case of those set out in Part 1, and revoked in the case of those set out in Part 2, to the extent mentioned in the third column of those Parts opposite the reference to the enactment concerned.

• (2) If and in so far as a provision of this Chapter operates, as from the day appointed under section 86, in substitution for a provision of the repealed enactments, any order or regulation made or having effect as if made, and any thing done or having effect as if done, under the substituted provision before that day shall be treated as from that day as if it were an order or regulation made or a thing done under such provision of this Chapter.

84 Continuity.

84.—(1) The provisions of this Chapter shall apply subject to so much of any Act which contains provisions relating to or affecting excise duties as—

• (a) is not repealed by this Chapter, and

• (b) would have operated in relation to these duties if this Chapter had not been substituted for the repealed enactments.

• (2) The Commissioners shall have all the jurisdictions, powers and duties in relation to alcohol products tax which they had in relation to the corresponding excise duties.

• (3) The continuity of the operation of the law relating to excise duties on alcohol products shall not be affected by the substitution of this Chapter for the repealed enactments.

• (4) Any reference, whether express or implied, in any enactment (including this Chapter) or document—

• (a) to any provision of this Chapter, or

• (b) to things done or to be done under or for the purposes of any provision of this Chapter,

shall, if and in so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision in the repealed enactments applied or had applied, a reference to, or, as the case may be, to things done or to be done under or for the purposes of, that corresponding provision.

• (5) Any reference, whether express or implied, in any enactment or document (including the repealed enactments and enactments passed and documents made)—

• (a) to any provision of the repealed enactments, or

• (b) to things done or to be done under or for the purposes of any provision of the repealed enactments,

shall, if and in so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision of this Chapter applies, a reference to, or as the case may be, to things done or deemed to be done or to be done under or, for the purposes of, that corresponding provision.

• (6) Every officer who immediately before the commencement of this provision, stood authorised or nominated for the purposes of any provision of the repealed enactments is, upon such commencement, deemed to be authorised or nominated, as the case may be, for the purposes of the corresponding provision of this Chapter.

• (7) Every instrument, document, authorisation and letter or notice of appointment made or issued under the repealed enactments and in force immediately before the commencement of this provision continues, upon such commencement, in force as if made or issued under this Chapter.

85 Care and management of alcohol products tax.

85.—Alcohol products tax imposed by section 75 is placed under the care and management of the Commissioners.

86 Commencement.

86.—This Chapter comes into operation on such day as the Minister for Finance may appoint by order, and different days may be so appointed for different provisions or for different purposes.

Chapter 2 Miscellaneous

87 Amendment of section 97 (excisable products) of Finance Act 2001.

87.—Section 97 of the Finance Act 2001 is amended—

• (a) by substituting the following for subsection (1):

• “(1) For the purposes of this Part the following are excisable products:

  • (a) until such day as the Minister for Finance may appoint by order under section 86 of the Finance Act 2003 for the coming into operation of section 75 of that Act—

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

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

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

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

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

  • (b) from such day as the Minister for Finance may appoint by order under section 86 of the Finance Act 2003 for the coming into operation of section 75 of that Act, alcohol products (within the meaning given by section 73 of that Act) chargeable with the duty of excise imposed by the said section 75;

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

  • (d) mineral oil chargeable with the duty of excise imposed by section 95 of the Finance Act 1999.”,

and

• (b) in paragraph (a) of subsection (2) by substituting “(d)” for “(h)”.

88 Amendment of section 109 (warehousing) of Finance Act 2001.

88.—Section 109 of the Finance Act 2001 is amended by inserting the following after subsection (6):

• “(6A) An authorised warehousekeeper or any person acting on behalf of such warehousekeeper shall, in respect of any warehouse approved in relation to such warehousekeeper, provide such appliances, facilities and assistance as an officer may reasonably require to take account of any excisable product or materials, and allow an officer at any reasonable time to use anything so provided.”.

89 Amendment of Chapter 2 of Part 2 (Intra-Community movement) of Finance Act 2001.

89.—Chapter 2 of Part 2 of the Finance Act 2001 is amended by substituting the following for section 110:

“Scope (Chapter 2).

110.—(1) This Chapter shall apply to all excisable products — except that, in the case of mineral oil, it shall apply only to products specified in paragraph (1) of Article 2a of Council Directive No. 92/81/EEC of 19 October 19921 or which have been the subject, under paragraph (2) of that article, of a decision to make such products subject to the control and movement provisions of the Directive. (2) Notwithstanding the relief from alcohol products tax under paragraph (d) of section 77 of the Finance Act 2003 for completely denatured alcohol products, this Chapter shall apply to all such products.”.

90 Amendment of section 136 (entry and search of premises) of Finance Act 2001.

90.—Section 136 of the Finance Act 2001 is amended by inserting the following after subsection (4):

• “(4A)

  • (a) Where an officer in or on any premises or place pursuant to this section has reason to believe that any concealed pipe, conveyance, utensil or other equipment is being kept or made use of in or on such premises or place with intent to evade alcohol products tax, then such officer or any person assisting such officer may break open any floor or wall of such premises or place, or any ground in or adjoining it, to search for such concealed pipe, conveyance, utensil or equipment.

  • (b) Where no concealed pipe, conveyance, utensil or other equipment, to which paragraph (a) relates, is found as a result of the breaking open of any floor or wall of any premises or place, then nothing in that paragraph shall be used as a defence in any civil proceedings to a claim arising out of any damage caused by that breaking open.”.

91 Rates of mineral oil tax.

91.—The Finance Act 1999 is amended by substituting the following for Schedule 2 to that Act, as amended by section 89 of the Finance Act 2002 (No. 5 of 2002):

“SCHEDULE 2

Rates of Mineral Oil Tax

(with effect as on and from 5 December 2002)

Description of Mineral Oil	Rate of Duty
Light Oil:
Leaded petrol	€511.72 per 1,000 litres
Unleaded petrol	€401.36 per 1,000 litres
Super unleaded petrol	€506.47 per 1,000 litres
Aviation gasoline	€255.86 per 1,000 litres
Heavy Oil:
Used as a propellant with a maximum sulphur content of 50 milligrammes per kilogramme	€326.73 per 1,000 litres
Other heavy oil used as a propellant	€379.12 per 1,000 litres
Kerosene used other than as a propellant	€31.74 per 1,000 litres
Fuel oil	€13.45 per 1,000 litres
Other heavy oil	€47.36 per 1,000 litres
Liquefied Petroleum Gas:
Used as a propellant	€53.01 per 1,000 litres
Other liquefied petroleum gas	€18.15 per 1,000 litres
Substitute Fuel:
Used as a propellant	€326.73 per 1,000 litres
Other substitute fuel	€47.36 per 1,000 litres

”.

92 Spirits.

92.—(1) In this section “alcohol” means pure ethyl alcohol.

• (2) The duty of excise on spirits imposed by paragraph 4(2) of the Imposition of Duties (No. 221) (Excise Duties) Order 1975 (S.I. No. 307 of 1975) shall be charged, levied and paid, as on and from 5 December 2002, at the rate of €39.25 per litre of alcohol in the spirits.

• (3) Section 82 of, and the Second Schedule to, the Finance Act 1996 (as amended by section 240 of, and Part 3 of Schedule 5 to, the Finance Act 2001), are repealed with effect as on and from 5 December 2002.

93 Offences in relation to keeping, selling or delivering of unexcised spirits.

93.—(1) In this section—

“counterfeit goods” has the same meaning as it has in Article 1 of Council Regulation (EC) No. 241/99 of 25 January 1999¹;

“spirits” has the same meaning as it has in paragraph 4(8) of the Imposition of Duties (No. 221) (Excise Duties) Order 1975 (No. 307 of 1975).

• (2) It is an offence under this subsection to invite an offer to treat for, offer for sale, keep for sale or delivery, sell or deliver, or to be in the process of delivering spirits on which the appropriate rate of excise duty has not been paid.

• (3) Without prejudice to any other penalty to which a person may be liable, such person convicted of an offence under subsection (2) is liable on summary conviction to a fine of €1,900.

• (4) Any spirits in respect of which an offence has been committed under subsection (2) are liable to forfeiture.

• (5) In the case of an offence under subsection (2), where it is shown that spirits are counterfeit goods, it shall be presumed (unless the contrary is proved) that excise duty has not been paid at the appropriate rate on such spirits.

94 Amendment of section 102 (offences) of Finance Act 1999.

94.—Section 102 of the Finance Act 1999 is amended—

• (a) in subsection (1) by substituting the following for paragraph (b):

• “(b) to use as a propellant, to invite an offer to treat for, offer for sale, keep for sale or delivery, sell or deliver, or to be in the process of delivering for such use or to keep in a fuel tank—

  • (i) any mineral oil on which mineral oil tax at the appropriate standard rate has not been paid,

  • (ii) any mineral oil containing one or more of the markers prescribed by regulations under section 104, or

  • (iii) any substance where the importation of mineral oil containing such substance is prohibited by regulations made under section 104,”,

• (b) by substituting the following for subsection (6):

• “(6)

  • (a) In the case of an offence under subsection (1), which relates to paragraph (b) of that subsection, that consists of the use of mineral oil as a propellant or keeping of mineral oil in a fuel tank in contravention of that subsection, any vehicle concerned in such offence shall be liable to forfeiture only where—

    • (i) a concealed tank, other container or any device, contrivance or method of any kind is employed to conceal the presence in a motor vehicle of mineral oil intended for use as a propellant, or

    • (ii) the owner or person in charge of the motor vehicle concerned in such offence does not have a permanent address in the State, or

    • (iii) proof of payment of mineral oil tax at the rate appropriate for use of the mineral oil concerned in a fuel tank is not produced, following interrogation under the provisions of Chapter 4 of Part 2 of the Finance Act 2001, and an officer has reasonable grounds to suspect that mineral oil tax has not been so paid, or

    • (iv) the offence is a second or subsequent such offence by the person concerned.

  • (b) Section 125(3) of the Finance Act 2001 does not apply to an offence to which this subsection relates.”.

95 Amendment of section 103 (presumptions in certain proceedings) of Finance Act 1999.

95.—Section 103 of the Finance Act 1999 is amended by inserting the following after subsection (3):

• “(4) Where, in any proceedings for an offence under section 102(1)(b)(i) it is proved that the mineral oil which is the subject of the offence is heavy oil other than fuel oil or kerosene, with a sulphur content exceeding 350 milligrammes per kilogramme, it shall be presumed, until the contrary is proved, that mineral oil tax at the appropriate standard rate has not been paid on such mineral oil.”.

96 Tobacco products.

96.—(1) In this section and in Schedule 3—

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

“Act of 2002” means the Finance Act 2002;

“cigarettes”, “cigars”, “fine-cut tobacco for the rolling of cigarettes” and “smoking tobacco” have the same meanings as they have in the Act of 1977, as amended by section 86 of the Finance Act 1997, and by section 94 of the Act of 2002.

• (2) The duty of excise on tobacco products imposed by section 2 of the Act of 1977 shall, in lieu of the several rates specified in Part 2 of Schedule 4 to the Act of 2002, be charged, levied and paid, as on and from 5 December 2002, at the several rates specified in Schedule 3.

97 Amendment of section 103 (payment) of Finance Act 2001.

97.—Section 103 of the Finance Act 2001 is amended by substituting the following for subsection (2):

• “(2)

  • (a) Without prejudice to the provisions of section 74 of the Finance Act 2002 concerning betting duty, where any amount of excise duty becomes payable under subsection (1) or under any other provision of the statutes which relate to the duties of excise, or any instrument relating to the duties of excise made under statute, and is not paid, simple interest on the amount shall be paid by the person liable to pay the duty and such interest shall be calculated from the date on which the amount became payable at a rate of 0.0322 per cent for each day or part of a day during which the amount remains unpaid.

  • (b) The interest payable under this section is deemed to be a debt to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Commissioners and may (without prejudice to any other mode of recovery of such interest) be sued for and recovered by action, or other appropriate proceedings, at the suit of the Commissioners by an officer authorised by them for the purposes of this subsection in any court of competent jurisdiction.

  • (c) In proceedings instituted for the recovery of any amount of interest—

    • (i) a certificate signed by an officer which certifies that a stated amount of interest is due and payable by the defendant shall be evidence, until the contrary is proved, that that amount is so due and payable, and

    • (ii) a certificate so certifying and purporting to be signed by an officer may be tendered in evidence without proof and shall be deemed, until the contrary is proved, to have been signed by an officer.”.

98 Amendment of Chapter 1 (interpretation, liability and payment) of Part 2 of Finance Act 2001.

98.—Chapter 1 of Part 2 of the Finance Act 2001 is amended by inserting the following sections after section 105:

“Underpayments.	105A.—(1) Unless a notification in writing stating that an amount of excise duty is due has been issued by the Commissioners before the expiry of a period of 4 years from the date of the act or event giving rise to the liability for that duty, proceedings for the recovery of such an amount may not be instituted or other action for such recovery taken, except where there are reasonable grounds to believe that any form of fraud or neglect has been committed by or on behalf of any person in connection with that liability. (2) In this section ‘neglect’ means negligence or a failure to give any notice, information or record or to make any return required to be given or made under the provisions of the statutes which relate to the duties of excise, and of any instruments relating to those duties made under statute. (3) This section comes into operation on such day as the Minister for Finance may appoint by order.
Repayment of overpaid duty.	105B.—(1) Subject to the other provisions of this section and section 105C where a person has paid an amount of excise duty or interest on excise duty which was not due from that person, the person is entitled to repayment of the amount involved. (2) The Commissioners are liable to repay an amount under this section only where a claim in writing, or in such other form as they may allow, is made to them for that purpose. (3) Except as provided by this section or by or under any other provision of the law relating to excise, the Commissioners are not liable to repay an amount of excise duty or interest on excise duty by virtue of the fact that it was not due.
Period for repayment claims.	105C.—(1) For the purposes of this section— ‘excise law’ means the statutes which relate to the duties of excise and instruments relating to those duties made under statute. (2) Subject to subsections (3) and (4) the Commissioners shall not make a repayment of excise duty or interest paid in respect of such duty unless a claim for that repayment is made within a period of 4 years from the date of payment to which the claim relates or from the date of any other act or event giving rise to an entitlement to a repayment. (3) Subject to subsection (4), where a claim for repayment— (a) the payment in respect of which, or (b) the act or event giving rise to an entitlement to repayment, occurs prior to 1 May 2003, subsection (2) shall apply with effect from 1 January 2005. (4) Where a person would, on due claim, be entitled to repayment of excise duty or interest paid on that duty under any other provision of excise law which provides for a shorter period within which the claim for repayment is to be made, then no repayment shall be made unless the claim for repayment is made within the shorter period concerned. (5) This section comes into operation on such day as the Minister for Finance may appoint by order.
Interest on repayment of duty.	105D.—(1) For the purposes of this section— ‘claimant’ means a person who submits a valid claim for a repayment amount; ‘excise law’ means the statutes which relate to the duties of excise and instruments relating to those duties made under statute; ‘repayment amount’ means an amount which a person becomes entitled to receive from the Commissioners and which is claimed— (a) within such period (if any) set down in respect of the provision of excise law under which the claim for repayment is made, where this applies, or (b) in all other cases, within a period of 4 years from the date of payment of excise duty or of any other act or event giving rise to an entitlement to repayment, but such amount does not include interest payable under this section; ‘valid claim’ means a claim, which includes all information required by the Commissioners to enable them to determine if and to what extent a repayment is due and, where applicable, is furnished in accordance with the provision of excise law under which such claim is made. (2) Where a mistaken assumption in the application of a provision of excise law is made by the Commissioners and as a result a repayment amount is payable to a claimant, interest is, subject to section 1006A(2A) of the Taxes Consolidation Act 1997, payable by the Commissioners on that amount from— (a) in the case of an overpaid amount, the date that overpaid amount was received by the Commissioners, and (b) in all other cases, the date on which the claimant would have been entitled to the repayment amount but for that mistaken assumption, to the date on which the repayment amount is paid by the Commissioners to the claimant. (3) Where, for any reason other than a mistaken assumption made by the Commissioners in the application of a provision of excise law, a repayment amount is payable to a claimant but is not paid until after the expiry of 6 months from the date the Commissioners receive a valid claim for that amount, interest is, subject to section 1006A(2A) of the Taxes Consolidation Act 1997, payable by the Commissioners on that amount from the date on which that 6 month period expires to the date on which the repayment amount is paid by the Commissioners to the claimant. (4) Interest payable in accordance with this section, shall be simple interest payable at the rate of 0.011 per cent per day or part of a day, or such other rate as may be prescribed by the Minister for Finance by order under subsection (7). (5) Interest shall not be payable under this section if it amounts to less than €10. (6) This section shall not apply in relation to any repayment or part of a repayment in respect of which interest is payable under or by virtue of any provision of any other enactment. (7) (a) The Minister for Finance may, from time to time, make an order prescribing a rate for the purposes of subsection (4). (b) Every order made by the Minister for Finance under paragraph (a) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done under it. (8) The Commissioners may make regulations as necessary governing the operation of this section. (9) This section comes into operation on such day as the Minister for Finance may appoint by order.”.

99 Administrative penalties for breach of provisions or regulations.

99.—Chapter 3 of Part 2 of the Finance Act 2001 is amended by inserting the following section after section 124:

“124A.—(1) A person who contravenes or fails to comply with—

• (a) any condition imposed under section 109(5), or

• (b) any condition referred to in section 153(2)(c) and which is contained in a regulation under that section,

is liable to a penalty of €1,500 for each such contravention or failure.

• (2) Any penalty payable under this section is deemed to be a debt due to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Commissioners and may (without prejudice to any other mode of recovery of such penalty) be sued for and recovered by action, or other appropriate proceedings, at the suit of the Commissioners by an officer authorised by them for the purposes of this subsection in any court of competent jurisdiction.”.

100 Delegation of powers, functions and duties of Commissioners.

100.—Chapter 5 of Part 2 of the Finance Act 2001 is amended by inserting the following section before section 145:

“144A.—(1) For the purposes of this Part, other than sections 107 and 153, and subject to the direction and control of the Commissioners, any power, function or duty conferred or imposed on them may, subject to subsection (2), be exercised or performed on their behalf by an officer.

• (2) Any power, function or duty conferred or imposed on the Commissioners by section 109, 112, 113 or 116 may be exercised or performed on their behalf, and subject to their direction and control, by an officer authorised by them in writing for the purposes of the section concerned.”.

101 Amendment of section 130 (interpretation) of Finance Act 1992.

101.—(1) Section 130 of the Finance Act 1992 is amended—

• (a) in the definition of “Category B vehicle” (amended by section 169 of the Finance Act 2001):

• (i) by inserting “a pick-up” after “a category D vehicle”, and

• (ii) by substituting the following for paragraph (a):

• “(a) in the case of a crew cab, is less than 3,500 kilograms gross vehicle weight, or”,

• (b) by substituting the following for the definition of “crew cab” (amended by section 169 of the Finance Act 2001);

“ ‘crew cab’ means a vehicle that comprises a cab, with seating for a driver and a minimum of 3 and a maximum of 6 other persons, and an area to the rear of the cab that is designed, constructed or adapted exclusively for the carriage of goods and which area—

• (i) is completely and permanently separated from the cab by a rigid partition that is fixed in such manner as may be prescribed by the Commissioners, and

• (ii) has a floor length that is not less than 45 per cent of the wheelbase when measured in such manner as may be prescribed by the Commissioners;”,

• (c) by inserting the following definition after the definition of “the order of 1984”:

“ ‘pick-up’ means a vehicle that comprises a cab, with a single row of seating for a driver and a maximum of two other persons, and an uncovered area to the rear of the cab that is designed, constructed or adapted exclusively for the carriage of goods and which area—

• (i) is completely and permanently separated from the cab by a rigid partition that is fixed in such manner as may be prescribed by the Commissioners, and

• (ii) has a floor length that is not less than 45 per cent of the wheelbase when measured in such manner as may be prescribed by the Commissioners;”,

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

102 Amendment of section 131 (registration of vehicles by Revenue Commissioners) of Finance Act 1992.

102.—(1) Section 131 of the Finance Act 1992 is amended—

by substituting the following for subsection (5) (amended by section 100 of the Finance Act 2000):

• “(5)

  • (a) The Commissioners shall assign in the prescribed manner a unique identification mark to each vehicle entered in the register and, following the issue of a licence under section 1 of the Act of 1952, the Minister for the Environment and Local Government shall issue to the owner of each such vehicle a certificate of registration in the prescribed form.

  • (b) Notwithstanding the provisions of paragraph (a), a certificate of registration may be issued where a licence under the Act of 1952 is not issued and the Minister for the Environment and Local Government or a licensing authority, as appropriate, is satisfied that the vehicle has not or will not in the future be used in any public place within the meaning of section 64 of the Finance Act 1976.”.

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

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

103.—(1) Section 132 of the Finance Act 1992, is amended in paragraphs (a) and (aa) (inserted by section 116 of the Finance Act 1999) of subsection (3) by substituting “1,900 cubic centimetres” for “2,000 cubic centimetres”.

• (2) This section applies as and from 1 January 2003.

104 Amendment of section 134 (permanent reliefs) of Finance Act 1992.

104.—(1) Section 134 of the Finance Act 1992 is amended by deleting subsection (15).

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

105 Amendment of section 135C (remission or repayment in respect of vehicle registration tax on certain hybrid electric vehicles) of Finance Act 1992.

105.—(1) Section 135C (inserted by section 168 of the Finance Act 2001) of the Finance Act 1992 is amended in subsection (1) by substituting “31 December 2004” for “31 December 2002”.

• (2) This section applies as and from 1 January 2003.

106 Amendment of section 141 (regulations) of Finance Act 1992.

106.—Section 141 of the Finance Act 1992 is amended in subsection (2), by substituting the following for paragraph (t) (inserted by section 74 of the Finance Act 1996):

• “(t) prescribe what constitutes permanently fitted equipment for the purposes of the definition of ‘motor caravan’ in section 130,

• (u) prescribe the manner in which the rigid partition which completely and permanently separates the cab from the area designed, constructed or adapted exclusively for the carriage of goods in a crew cab or a pick-up is to be fixed for the purposes of the definition of ‘crew cab’ and ‘pick-up’ in section 130,

• (v) prescribe the manner in which the floor length of the area designed, constructed or adapted exclusively for the carriage of goods in a crew cab or a pick-up is to be measured for the purposes of the definition of ‘crew cab’ and ‘pick-up’ in section 130.”.

107 Gaming licences.

107.—(1) The duty of excise imposed by section 17 of the Finance Act 1956 on gaming licences issued under section 19 of the Gaming and Lotteries Act 1956 shall be charged, levied and paid on such licences issued on or after 1 June 2003 at the rates specified in Schedule 4 in lieu of the rates specified in Part III of the Sixth Schedule to the Finance Act 1992 (as amended by reference to section 240 of, and Part 3 of Schedule 5 to, the Finance Act 2001).

• (2) In respect of licences issued on or after 1 June 2003, Part III of the Sixth Schedule to the Finance Act 1992 is repealed.

• (3) This section comes into operation on such day as the Minister for Finance may appoint by order.

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

108.—(1) Section 43 of the Finance Act 1975 is amended—

• (a) in subsection (2)(a) (as amended by paragraph (b) of section 176 of the Finance Act 2001) by deleting “once more” after “to play again”,

• (b) by substituting the following for subsection (6):

• “(6) There shall be charged, levied and paid on the grant of a gaming machine licence a duty of excise at whichever of the following rates is appropriate having regard to the period for which the licence is to remain in force, that is to say, where the period for which the licence is to remain in force—

  • (a) does not exceed 3 months, €145,

  • (b) exceeds 3 months but does not exceed 12 months, €505.”,

and

• (c) by deleting subsection (7).

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

109 Amendment of section 120 (interpretation (Chapter III) of Finance Act 1992.

109.—(1) Section 120 of the Finance Act 1992 (as amended by section 175 of the Finance Act 2001) is amended in subsection (2)(d) by deleting “once more” after “to play again”.

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

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

110.—(1) Section 123 of the Finance Act 1992 is amended by deleting paragraph (c) (inserted by section 70(b) of the Finance Act 1993).

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

111 Time limits.

111.—(1) The Finance Act 2002 is amended by inserting the following after section 73:

“73A.—(1) (a) In relation to any month or period commencing on or after 1 May 2002, an estimate of betting duty payable or an assessment of betting duty payable under section 72 or 73 may be made at any time not later than 4 years after the end of the month or period to which the estimate or assessment relates or, where the period in respect of which the estimate or assessment is made consists of 2 or more months or periods, after the end of the earlier or the earliest month or period comprised in such month or period.

• (b) Notwithstanding paragraph (a), in a case in which any form of fraud or neglect has been committed by or on behalf of any person in connection with or in relation to betting duty, an estimate or assessment as aforesaid may be made at any time for any month or period for which, by reason of the fraud or neglect, betting duty would otherwise be lost to the Exchequer.

• (c) A person shall be deemed not to have failed to do anything required to be done within a limited time if he or she did it within such further time, if any, as the Revenue Commissioners may have allowed.

• (d) Where a person has a reasonable excuse for not doing anything required to be done, he or she shall be deemed not to have failed to do it if he or she did it without unreasonable delay after the excuse had ceased.

• (e) In this subsection “neglect” means negligence or a failure—

  • (i) to give any notice,

  • (ii) to furnish particulars,

  • (iii) to make any return, or

  • (iv) to produce or furnish any information, book, document, record or declaration,

  required to be given, furnished, made or produced under this Chapter or regulations.

• (2)

  • (a) Where a person dies, an estimate or assessment of betting duty under section 72 or 73, as the case may be, may be made on his or her personal representative for any period for which such an estimate or assessment—

    • (i) could have been made upon him or her immediately before his or her death, or

    • (ii) could be made upon him or her if he or she were living,

    in respect of betting duty which became due by such person before his or her death, and the amount of betting duty recoverable under such estimate or assessment shall be a debt due from and payable out of the estate of such a person.

  • (b) Subject to paragraph (c), an estimate or assessment of betting duty shall not be made by virtue of this subsection—

    • (i) later than 3 years after the expiration of the year in which the deceased person died, in a case in which the grant of probate or letters of administration was made in that year, and

    • (ii) later than 2 years after the expiration of the year in which such grant was made in any other case.

  • (c) Where a personal representative to whom paragraph (b) relates—

    • (i) after the year in which the deceased person died, delivers an additional affidavit under section 48 of the Capital Acquisitions Tax Consolidation Act 2003, or

    • (ii) is liable to deliver an additional affidavit under the said section 48, has been so notified by the Revenue Commissioners and did not deliver such an affidavit in the year in which the deceased person died,

    then such estimate or assessment referred to in paragraph (b) may be made at any time before the expiration of 2 years after the end of the year in which the additional affidavit was or is delivered.”.

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

PART 3 Value-Added Tax

112 Interpretation (Part 3).

112.—In this Part “Principal Act” means the Value-Added Tax Act 1972.

113 Amendment of section 1 (interpretation) of Principal Act.

113.—Section (1) of the Principal Act is amended in subsection (1) by inserting the following definition after the definition of “development”:

“ ‘electronically supplied services’ includes—

• (a) website supply, web-hosting, distance maintenance of programmes and equipment,

• (b) supply of software and updating of it,

• (c) supply of images, text and information, and making databases available,

• (d) supply of music, films and games, including games of chance and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events, and

• (e) supply of distance teaching,

and ‘electronic service’ shall be construed accordingly, but where the supplier of a service and his or her customer communicates by means of electronic mail, this shall not of itself mean that the service performed is an electronic service;”.

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

114.—Section 4 of the Principal Act is amended in subsection (3A)(d)—

• (a) by substituting “the total amount on which tax was chargeable” for “the amount on which tax was chargeable”, and

• (b) by substituting “in respect of or in relation to” for “in respect of” in both places where it occurs.

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

115.—Section 5 of the Principal Act is amended in subsection (6)—

• (a) by inserting in paragraph (dd) “or a radio or television broadcasting service,” after “subsection (6A),”,

• (b) by substituting in paragraph (e) “paragraphs (ddd), (ee) and (eee)” for “paragraphs (ddd) and (ee)”, and

• (c) by inserting after paragraph (ee) the following paragraph:

• “(eee) The place of supply of services of the description specified in paragraph (iiic) of the Fourth Schedule shall be deemed, for the purposes of this Act, to be the State when those services are supplied from outside the Community in the course or furtherance of business by a person who has an establishment outside the Community and has not also an establishment in the Community and are received, otherwise than for a business purpose, by a person whose usual place of residence is the State.”.

116 Special scheme for electronic services

116.—The Principal Act is amended by inserting the following section after section 5:

“5A.—(1) In this section—

‘electronic services scheme’ means the special arrangements for the taxation of electronically supplied services provided for in Article 26c of Council Directive No. 77/388/EEC¹ of 17 May 1977;

‘EU value-added tax’ means value-added tax referred to in Council Directive No. 77/388/EEC of 17 May 1977 and includes tax within the meaning of section 1;

‘identified person’ has the meaning assigned to it by subsection (5);

‘Member State of consumption’ means the Member State in which the supply of the electronic services takes place according to Article 9(2)(f) of Council Directive No. 77/388/EEC of 17 May 1977;

‘Member State of identification’ means the Member State which the non-established person chooses to contact to state when his or her activity within the Community commences in accordance with the provisions of the electronic services scheme;

‘national tax number’ means a number (whether consisting of either or both numbers and letters) assigned to a non-established person by his or her own national taxation authorities;

‘non-established person’ means a person who has his or her establishment outside the Community and has not also an establishment in the Community and who is not otherwise required to be a person registered for value-added tax within the meaning of section 1;

‘scheme participant’ means a non-established person who supplies electronic services into the Community and who opts to use the electronic services scheme in any Member State;

‘VAT return’ means the statement containing the information necessary to establish the amount of EU value-added tax that has become chargeable in each Member State under the electronic services scheme.

• (2) Subject to and in accordance with the provisions of this section, a non-established person may opt to apply the electronic services scheme to his or her supplies of electronic services to non-taxable persons within the Community.

• (3) The Revenue Commissioners shall set up and maintain a register, referred to in this section as an ‘identification register’, of non-established persons who are identified in the State for the purposes of the electronic services scheme.

• (4) A non-established person who opts to be identified in the State for the purposes of the electronic services scheme shall inform the Revenue Commissioners by electronic means in a manner specified by them, when his or her taxable activity commences and shall, at the same time, furnish them electronically with the following information—

  • (a) the person's name and postal address,

  • (b) his or her electronic addresses, including website addresses,

  • (c) his or her national tax number, if any, and

  • (d) a statement that the person is not a person registered, or otherwise identified, for value-added tax purposes within the Community.

• (5) Where a person has furnished the particulars required under subsection (4), the Revenue Commissioners shall register that person in accordance with subsection (3), allocate to that person an identification number and notify such person electronically of it, and, for the purposes of this section, a person to whom such an identification number has been allocated shall be referred to as an ‘identified person’.

• (6) An identified person shall, within 20 days immediately following the end of each calendar quarter, furnish by electronic means to the Revenue Commissioners a VAT return, prepared in accordance with, and containing such particulars as are specified in, subsection (7), in respect of supplies made in the Community in that quarter and shall at the same time remit to the Revenue Commissioners, into a bank account designated by them and denominated in euro, the amount of EU value-added tax, if any, payable by such person in respect of such quarter in relation to—

  • (a) supplies made in the State in accordance with section 5(6)(eee), and

  • (b) supplies made in other Member States in accordance with the provisions implementing Article 9(2)(f) of Council Directive No. 77/388/EEC of 17 May 1977 in such other Member States:

  but if the identified person has not made any such electronic supplies to non-taxable persons into the Community within a calendar quarter that person shall furnish a nil VAT return in respect of that quarter.

• (7) The VAT return referred to in subsection (6) shall be made in euro and shall contain the following details—

  • (a) the person's identification number,

  • (b) for each Member State of consumption where EU value-added tax has become due—

    • (i) the total value, exclusive of EU value-added tax, of supplies of electronic services for the quarter,

    • (ii) the amount of the said value liable to EU value-added tax at the applicable rate, and

    • (iii) the amount of EU value-added tax corresponding to the said value at the applicable rate,

    and

  • (c) the total EU value-added tax due, if any.

• (8) Notwithstanding section 10(9A), where supplies have been made using a currency other than the euro, the exchange rate to be used for the purposes of expressing the corresponding amount in euro on the VAT return shall be that published by the European Central Bank for the last date of the calendar quarter for which the VAT return relates, or, if there is no publication on that date, on the next day of publication.

• (9) Notwithstanding section 12, a scheme participant who supplies services which are deemed in accordance with section 5(6)(eee) to be supplied in the State shall not, in computing the amount of tax payable by him or her in respect of such supplies, be entitled to deduct any tax borne or paid in relation to those supplies but shall be entitled to claim a refund of such tax in accordance with, and using the rules applicable to, Council Directive 86/560/EEC¹ of 17 November 1986, notwithstanding Articles 2(2), 2(3) and 4(2) of that Directive.

• (10) A scheme participant who supplies services which are deemed in accordance with section 5(6)(eee) to be supplied in the State shall be deemed to have fulfilled his or her obligations under sections 9, 16 and 19 of this Act if such participant has accounted in full in respect of such supplies in any Member State under the provisions of the electronic services scheme.

• (11) For the purposes of this Act, a VAT return required to be furnished in accordance with the electronic services scheme shall, in so far as it relates to supplies made in accordance with section 5(6)(eee), be treated, with any necessary modifications, as if it were a return required to be furnished in accordance with section 19.

• (12)

  • (a) An identified person shall—

    • (i) keep full and true records of all transactions covered by the electronic services scheme which affect his or her liability to EU value-added tax,

    • (ii) make such records available, by electronic means and on request, to the Revenue Commissioners,

    • (iii) make such records available, by electronic means and on request, to all Member States of consumption, and

    • (iv) notwithstanding section 16, retain such records for each transaction for a period of 10 years from the end of the year when that transaction occurred.

  • (b) A scheme participant who is deemed to supply services in the State in accordance with section 5(6)(eee) shall be bound by the requirements of subparagraphs (i), (ii) and (iv) in relation to such supplies.

• (13) An identified person shall notify the Revenue Commissioners of any changes in the information submitted under subsection (4) and shall notify them if his or her taxable activity ceases or changes to the extent that such person no longer qualifies for the electronic services scheme. Such notification shall be made electronically.

• (14) The Revenue Commissioners shall exclude an identified person from the identification register if—

  • (a) they have reasonable grounds to believe that that person's taxable activities have ended, or

  • (b) the identified person—

    • (i) notifies the Revenue Commissioners that he or she no longer supplies electronic services,

    • (ii) no longer fulfils the requirements necessary to be allowed to use the electronic services scheme, or

    • (iii) persistently fails to comply with the provisions of the electronic services scheme.

• (15) The Revenue Commissioners may make regulations as necessary for the purpose of giving effect to the electronic services scheme.”.

117 Amendment of section 7 (waiver of exemption) of Principal Act.

117.—Section 7 of the Principal Act is amended by inserting the following after paragraph (a) of subsection (3)—

• “(aa) the amount of tax deducted by him in accordance with section 12, prior to the commencement of the letting of the immovable goods to which the waiver relates, in respect of or in relation to his acquisition of his interest in, or his development of, those immovable goods,”.

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

118.—Section 8 of the Principal Act is amended—

• (a) in subsection (1) by substituting “goods in the State in the circumstances set out in subsection (1A)(f) or supplies a service in the State in the circumstances set out in subsection (2)(aa),” for “a service in the State in the circumstances set out in subsection (2)(aa)”, and

• (b) in subsection (1A) by inserting the following paragraph after paragraph (e)—

• “(f) Where a person not established in the State supplies goods in the State which are installed or assembled, with or without a trial run, by or on behalf of that person, and where the recipient of the supply of those goods is—

  • (i) a taxable person,

  • (ii) a Department of State or local authority,

  • (iii) a body established by statute, or

  • (iv) a person who receives that supply for the purpose of any activity specified in the First Schedule,

  then that recipient shall in relation to that supply of those goods be a taxable person or be deemed to be a taxable person and shall be liable to pay the tax chargeable as if that recipient supplied those goods in the course or furtherance of business.”.

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

119.—Section 11(1)(d) of the Principal Act is amended by substituting “13.5 per cent” for “12.5 per cent”.

120 Amendment of section 12B (special scheme for means of transport supplied by taxable dealers) of Principal Act.

120.—Section 12B of the Principal Act is amended—

• (a) in subsection (10), by deleting “and” at the end of paragraph (a), by substituting “of that motor vehicle to that person, and” for “of that motor vehicle to that person.” in paragraph (b) and by inserting the following after paragraph (b):

• “(c) a supply by a taxable dealer of a means of transport being a motor vehicle as defined in section 12(3)(b) which has been declared for registration in accordance with section 131 of the Finance Act 1992 on that dealer's own behalf, unless it can be shown to the satisfaction of the Revenue Commissioners that, on the basis of the use to which that means of transport has been put by that taxable dealer, the provisions of subsection (11)(b) should not apply to that supply.”,

and

• (b) by inserting the following after subsection (10):

“(11)(a) Where a means of transport which is a motor vehicle as defined in section 12(3)(b) is declared for registration to the Revenue Commissioners in accordance with section 131 of the Finance Act 1992 by a taxable dealer on that dealer's own behalf and on which deductibility in accordance with section 12 has been claimed by that dealer, then that means of transport shall be treated for the purposes of this Act as if it were removed from stock-in-trade and such removal is deemed to be a supply of that means of transport by that taxable dealer for the purposes of section 3(1)(e).

• (b) At the time when a taxable dealer supplies to another person a means of transport which is deemed to have been supplied in accordance with paragraph (a), then that means of transport is deemed to be re-acquired by that dealer as stock-in-trade and, notwithstanding subsection (2), the taxable dealer is entitled to deduct residual tax referred to in subsection (1) and in that case for the purposes of the formula in subsection (4) the residual tax is calculated as if ‘A’ were equal to the total of—

  • (i) the amount on which tax was chargeable on the supply of that means of transport to the dealer,

  • (ii) the tax which was chargeable on the supply referred to at subparagraph (i), and

  • (iii) the vehicle registration tax accounted for by that dealer in respect of the registration of that means of transport,

  and, apart from the cases provided for in paragraph (c), the amount referred to in subparagraph (i) is the amount on which tax was chargeable on the supply of that means of transport in accordance with section 3(1)(e).

• (c) Where a taxable dealer declares a means of transport for registration in the circumstances described in paragraph (a) but does not claim deductibility in accordance with section 12 in respect of that means of transport, then paragraph (b) applies when that dealer supplies that means of transport to another person.”.

121 Amendment of section 16 (duty to keep records) of Principal Act.

121.—Section 16 of the Principal Act is amended—

• (a) in subsection (3) by inserting “, subject to subsection (4),” after “any copy thereof which is in the power, possession or procurement of the person shall”, and

• (b) by inserting the following subsection after subsection (3):