Finance Act 2003

• “(4) Notwithstanding the retention period specified in subsection (3) the following retention periods shall apply:

  • (a) where a person acquires or develops immovable goods to which section 4 applies, the period for which that person shall retain records pursuant to this section in relation to that person's acquisition or development of those immovable goods shall be the duration that such person holds a taxable interest in such goods plus a further period of six years,

  • (b) where a person exercises a waiver of exemption from tax in accordance with section 7, the period for which that person shall retain records pursuant to this section shall be the duration of the waiver plus a further period of six years.”.

122 Amendment of section 17 (invoices) of Principal Act.

122.—Section 17 of the Principal Act is amended—

• (a) by inserting in subsection (1) “or to a Department of State or local authority or to a body established by statute or to a person who carries on an exempted activity” after “who supplies goods or services to another taxable person”,

• (b) by deleting in subsection (10)(a) “goods or services are supplied to a registered person by another registered person or”,

• (c) by substituting in subsection (10)(b) “agricultural produce” for “goods”, and

• (d) by inserting the following after subsection (13):

• “(14)

  • (a) An invoice required under this section to be issued in respect of a supply by a person, in this subsection referred to as the ‘supplier’, is deemed to be so issued by that supplier if that invoice is drawn up and issued by the person to whom that supply is made, in this subsection referred to as the ‘customer’, where—

    • (i) there is prior agreement between the supplier and the customer that the customer may draw up and issue such invoice,

    • (ii) the customer is a person registered for value-added tax,

    • (iii) any conditions which are imposed by this Act or by regulations on the supplier in relation to the form, content or issue of the invoice are met by the customer, and

    • (iv) agreed procedures are in place for the acceptance by the supplier of the validity of the invoice.

  • (b) An invoice, which is deemed to be issued by the supplier in accordance with paragraph (a), is deemed to have been so issued when such invoice is accepted by that supplier in accordance with the agreed procedures referred to in paragraph (a)(iv).

  • (c) An invoice required to be issued by a supplier under this section shall be deemed to be so issued by that supplier if—

    • (i) that invoice is issued by a person who acts in the name and on behalf of the supplier, and

    • (ii) any conditions which are imposed by this Act or by regulations on the supplier in relation to the form, content or issue of the invoice are met.

  • (d) Any credit note or debit note issued in accordance with this section which amends and refers specifically and unambiguously to an invoice is treated as if it were an invoice for the purposes of this subsection.

  • (e) The Revenue Commissioners may make regulations in relation to the conditions applying to invoices covered by this subsection.

  (15)(a) A person who issues, or is deemed to issue, an invoice under this section shall ensure that—

  - (i) a copy of any invoice issued by such person,
  
  - (ii) a copy of any invoice deemed to be issued by such person in the circumstances specified in subsection (14), and
  
  - (iii) any invoice received by such person,
  
    is stored, and for the purposes of section 16(1) the reference to the keeping of full and true records therein shall be construed accordingly in so far as it relates to invoices covered by this section.
  

  • (b) Any invoice not stored by electronic means in a manner which conforms with requirements laid down by the Revenue Commissioners shall be stored within the State, but subject to the agreement of the Revenue Commissioners and any conditions set by them such invoice may be stored outside the State.”.

123 Amendment of section 19 (tax due and payable) of Principal Act.

123.—Section 19 of the Principal Act is amended by inserting the following after subsection (5):

• “(6) Notwithstanding the provisions of subsection (3), in cases where the provisions of section 5A are applied, the tax shall be payable at the time the VAT return is required to be submitted in accordance with section 5A(6).”.

124 Amendment of section 20 (refund of tax) of Principal Act.

124.—Section 20 of the Principal Act is amended—

• (a) in subsection (4)(a)—

• (i) by substituting “1 May 2003” for “the 1st day of May, 1998”, and

• (ii) by substituting “six years” for “ten years”,

• (b) in subsection (4)(b)—

• (i) by substituting “1 May 2003” for “the 1st day of May, 1998”,

• (ii) by substituting “1 January 2005” for “the 1st day of May, 1999,”, and

• (iii) by substituting “four years” for “six years”,

• (c) in subsection (5)(e) by inserting “together with any interest payable in accordance with section 21A” after “refund to the claimant that part of the withheld amount”, and

• (d) by inserting the following subsection after subsection (6):

• “(7) The Revenue Commissioners shall not refund any amount of tax except as provided for in this Act, or any order or regulation made under this Act.”.

125 Interest on refunds of tax.

125.—The Principal Act is amended by inserting the following section after section 21—

“21A.—(1) For the purposes of this section—

‘claimant’ means a person who submits a valid claim for a refundable amount;

‘overpaid amount’ means an amount which is a refundable amount as a result of a claimant having made a payment of tax;

‘refundable amount’ means an amount which a person is entitled to receive from the Revenue Commissioners in accordance with this Act or any order or regulation made under this Act and which is claimed within the period provided for in subsection 20(4), but such amount does not include interest payable under this section; ‘valid claim’ means a return or a claim, furnished in accordance with this Act or any order or regulation made under it, and which includes all information required by the Revenue Commissioners to establish the refundable amount.

• (2) Where a mistaken assumption in the operation of the tax is made by the Revenue Commissioners and as a result a refundable amount is payable to a claimant, interest at the rate set out in subsection (4) or prescribed by order under subsection (7) shall, subject to section 1006A(2A) of the Taxes Consolidation Act 1997, be payable by the Revenue Commissioners on that amount from—

  • (a) in the case of an overpaid amount, the day that overpaid amount was received by the Revenue Commissioners,

  • (b) in the case of any other refundable amount, the 19th day of the month following the taxable period in respect of which a claimant would have been entitled to receive a refundable amount but for the mistaken assumption in the operation of the tax by the Revenue Commissioners, but where a return was due in accordance with section 19 from that claimant in respect of that taxable period, the day such return was received,

  to the day on which the refundable amount is paid by the Revenue Commissioners to the claimant.

• (3) Where, for any reason other than a mistaken assumption in the operation of the tax made by the Revenue Commissioners, a refundable amount is payable to a claimant but is not paid until after the expiry of six months from the day the Revenue Commissioners receive a valid claim for that amount, interest at the rate specified in subsection (4) or prescribed by order under subsection (7) shall, subject to section 1006A(2A) of the Taxes Consolidation Act 1997, be payable by the Revenue Commissioners on that amount from the day on which that six months expires to the day on which the refundable amount is paid by the Revenue 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 if it amounts to less than €10.

• (6)

  • (a) The Revenue Commissioners shall not pay interest in respect of any amount under this Act except as provided for by this section.

  • (b) This section shall not apply in relation to any refund of tax 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 Revenue Commissioners may make regulations as necessary governing the operation of this section.”.

126 Amendment of section 22 (estimation of tax due for a taxable period) of Principal Act.

126.—Section 22 of the Principal Act is amended by replacing the proviso in subsection (1) with the following:

“Provided that where the Revenue Commissioners are satisfied that—

• (a) the amount so estimated is excessive, they may amend the amount so estimated by reducing it, or

• (b) the amount so estimated is insufficient, they may amend the amount so estimated by increasing it,

then, in either case, they shall serve notice on the person concerned of the revised amount estimated and such notice shall supercede any previous notice issued under this subsection.”.

127 Amendment of section 27 (fraudulent returns, etc.) of Principal Act.

127.—Section 27 of the Principal Act is amended—

• (a) by inserting the following subsection after subsection (1):

• “(1A) Where a person fraudulently or negligently fails to comply with a requirement in accordance with this Act or regulations to furnish a return, that person shall be liable to a penalty of—

  • (a) €125, and

  • (b) the amount, or in the case of fraud twice the amount, of the difference between—

    • (i) the amount of tax properly payable by such person if such return had been furnished by that person and that return had been correct, and

    • (ii) the amount of tax (if any) paid in respect of the taxable period for which the said return was not furnished.”,

and

• (b) in subsection (2)—

• (i) by substituting “subsection (1) or (1A)” for “the foregoing subsection”, and

• (ii) by substituting “any reference in those subsections” for “the reference in paragraph (a) of that subsection”.

128 Amendment of section 29 (recovery of penalties) of Principal Act.

128.—(1) Section 29 of the Principal Act is amended—

• (a) in subsection (1), by substituting “for the recovery of the penalty in any court of competent jurisdiction as a liquidated sum, and, where appropriate, section 94 of the Courts of Justice Act 1924 shall apply accordingly.” for “for the recovery of the penalty in the High Court as a liquidated sum and the provisions of section 94 of the Courts of Justice Act, 1924, shall apply accordingly.”, and

• (b) in subsection (6), by substituting “the rules of court” for “the rules of the High Court”.

• (2) Subsection (1) applies as respects civil proceedings commenced on or after the passing of this Act.

129 Amendment of section 30 (time limits) of Principal Act.

129.—Section 30 of the Principal Act is amended—

• (a) in subsection (4)(a)(i)—

• (i) by substituting “1 May 2003” for “the 1st day of May, 1998”, and

• (ii) by substituting “six years” for “ten years”,

and

• (b) in subsection (4)(a)(ii)—

• (i) by substituting “1 May 2003” for “the 1st day of May, 1998”,

• (ii) by substituting “1 January 2005” for “the 1st day of May, 1999,”, and

• (iii) by substituting “four years” for “six years”.

130 Amendment of section 32 (regulations) of Principal Act.

130.—Section 32 of the Principal Act is amended in subsection (1)—

• (a) by inserting the following after paragraph (b):

• “(ba) the manner in which the electronic services scheme referred to in section 5A shall operate;”,

and

• (b) by inserting the following after paragraph (m):

• “(ma) the conditions governing a person's entitlement to interest in accordance with section 21A;”.

131 Amendment of Fourth Schedule to Principal Act.

131.—The Fourth Schedule to the Principal Act is amended by inserting the following after paragraph (iiia):

“(iiib) radio and television broadcasting services;

(iiic) electronically supplied services;”.

PART 4 Stamp Duties

132 Interpretation (Part 4).

132.—In this Part—

“Commissioners” means the Revenue Commissioners;

“Principal Act” means the Stamp Duties Consolidation Act 1999.

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

133.—(1) Section 1 of the Principal Act is amended in subsection (1) by substituting the following for paragraph (I) of the definition of “residential property”—

• “(I) in the year ending on 31 December immediately prior to the date of that instrument of conveyance or lease a rating authority—

• (A) has made a rate or has not made a rate in respect of any particular property falling within Schedule 3 to the Valuation Act 2001, or

• (B) has not made a rate in respect of any particular property falling within Schedule 4 to the Valuation Act 2001,

then the whole or an appropriate part of that property as is referable to ordinary use other than as a dwelling at the date of that instrument of conveyance or lease or, where appropriate, when last ordinarily used, shall not be residential property, in relation to that sale or lease, or”.

• (2) This section has effect in relation to instruments executed on or after the passing of this Act.

134 Amendment of section 36 (certain contracts for sale of leasehold interests to be chargeable as conveyances on sale) of Principal Act.

134.—(1) Section 36 of the Principal Act is amended by inserting the following subsection after subsection (2):

• “(3) Where on or after 1 March 2003 a charge arises under subsection (2) in respect of a contract or agreement for sale executed prior to 4 December 2002, the ad valorem stamp duty payable on that contract or agreement for sale shall be calculated by reference to the rates of ad valorem stamp duty in force on the date that the charge arises.”.

• (2) Subsection (1) applies and has effect in relation to contracts or agreements for sale executed prior to 4 December 2002 in respect of charges arising on or after 1 March 2003.

135 Amendment of section 69 (operator-instruction deemed to be an instrument of conveyance or transfer) of Principal Act.

135.—(1) Section 69 of the Principal Act is amended by inserting the following after subsection (3):

• “(4) Where a transfer of title to securities through a relevant system is effected by an operator-instruction relating to a single netted settlement in a relevant system of two or more contracts for sale of the same type of securities of a company that operator-instruction shall not be treated as an operator-instruction falling within subsection (1) and shall, instead, be deemed to be a separate operator-instruction generated in respect of each contract for sale included in that single netted settlement and each such operator-instruction shall be deemed to be an executed instrument of conveyance or transfer of the securities which are the subject of the contract for sale concerned and the date of execution of each such conveyance or transfer shall be taken to be the date the operator-instruction relating to the single netted settlement is generated.

• (5) Where no operator-instruction is generated in connection with a single netted settlement in a relevant system of two or more contracts for sale of the same type of securities of a company, a separate operator-instruction shall be deemed to have been generated on the date of the single netted settlement in respect of each contract for sale included in that single netted settlement and each such operator-instruction shall be deemed to be an executed instrument of conveyance or transfer of the securities which are the subject of the contract for sale concerned and the date of execution of each such conveyance or transfer shall be taken to be the date the deemed operator-instruction is generated.”.

• (2) Subsection (1) has effect in relation to instruments executed on or after the passing of this Act.

136 Amendment of section 79 (conveyances and transfers of property between certain bodies corporate) of Principal Act.

136.—(1) Section 79 of the Principal Act is amended—

• (a) in subsection (3)—

• (i) by substituting “ordinary share capital” for “issued share capital” in the first 2 places where it occurs, and

• (ii) by substituting the following for paragraphs (a), (b) and (c):

• “(a) references to company were references to body corporate, and

• (b) references to companies were references to bodies corporate.”,

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

• “(3A) For the purposes of subsection (3) ‘ordinary share capital’, in relation to a body corporate, means all the issued share capital (by whatever name called) of the body corporate, other than capital the holders of which have a right to a dividend at a fixed rate, but have no other right to share in the profits of the body corporate.”,

and

• (c) by inserting the following after subsection (8):

• “(9) This section shall apply notwithstanding that a body corporate, referred to in this section, is incorporated outside the State, and such body corporate, corresponds, under the law of the place where it is incorporated, to a body corporate which has an ordinary share capital within the meaning given in subsection (3A) and subject to any necessary modifications for the purpose of so corresponding, all the other provisions of this section are met.”.

• (2) Subsection (1) applies and has effect in relation to instruments executed on or after 6 February 2003.

137 Amendment of section 81 (relief from stamp duty in respect of transfers to young trained farmers) of Principal Act.

137.—(1) Section 81 of the Principal Act is amended in subsection (9), by substituting “31 December 2005” for “31 December 2002”.

• (2) Subsection (1) applies and has effect in relation to instruments executed on or after 1 January 2003.

138 Foreign Government securities.

138.—(1) The Principal Act is amended by the substitution of the following section for section 89:

“89.—(1) In this section—

‘foreign local authority’ means an authority, corresponding in substance to a local authority for the purposes of the Local Government Act 2001, which is established outside the State and whose functions are carried on primarily outside the State;

‘foreign local government’ means any local or regional government in any jurisdiction outside the State.

• (2) Stamp duty shall not be chargeable on any conveyance or transfer of stocks or other securities of the government of any territory outside the State, of a foreign local government or of a foreign local authority.”.

• (2) This section has effect in relation to instruments executed on or after 6 February 2003.

139 Exemption of National Development Finance Agency, etc. from stamp duty.

139.—(1) The Principal Act is amended by the insertion of the following section after section 108—

“National Development Finance Agency, etc.	108A.—(1) In this section—
	‘land’ includes an interest in land; ‘the Agency’ means the National Development Finance Agency established by section 2 of the National Development Finance Agency Act 2002. (2) Stamp duty shall not be chargeable on any instrument executed— (a) by or on behalf of the Agency whereby property is acquired by the Agency, or (b) by a company formed by the Agency under section 5 of the National Development Finance Agency Act 2002 whereby land is acquired from the Agency, from a company formed by the Agency under section 5 of the National Development Finance Agency Act 2002, or from a State authority within the meaning of section 1 of the National Development Finance Agency Act 2002. (3) Subsection (2)(b) shall not apply to an instrument executed by a company formed by the Agency under section 5 of the National Development Finance Agency Act 2002 unless— (a) on the date the instrument is executed, the company is 100 per cent beneficially owned, either directly or indirectly by the State, and (b) on or before that date, the Minister has received confirmation in writing from the Agency that such company will remain indefinitely so beneficially owned by the State. (4) Where, in relation to an instrument which is exempt from stamp duty by virtue of subsection (2)(b)— (a) the company disposes of the land or any part of the land the subject matter of such instrument, other than to a company formed by the Agency under section 5 of the National Development Finance Agency Act 2002, the company shall become liable to pay to the Commissioners a penalty equal to the amount of stamp duty which would have been charged on the instrument in the first instance if the land disposed of had been conveyed or transferred by an instrument to which subsection (2)(b) had not applied, or (b) the company ceases, at any time, to be 100 per cent beneficially owned, either directly or indirectly by the State, the company shall become liable to pay to the Commissioners a penalty equal to the amount of stamp duty which would have been charged on the instrument in the first instance had subsection (2)(b) not applied, together with interest on the penalty at a rate of 0.0322 per cent per day or part of a day from the date of any such disposal or cessation to the date the penalty is remitted. (5) Notwithstanding paragraphs (a) and (b) of subsection (4), the maximum penalty payable on any instrument shall not exceed the amount of duty which would have been charged on the instrument in the first instance had subsection (2)(b) not applied.”.

• (2) This section has effect in relation to instruments executed on or after 1 January 2003.

140 Amendment of Part 9 (levies) of Principal Act.

140.—(1) Part 9 of the Principal Act is amended—

• (a) in section 123—

• (i) in subsection (1)—

• (I) by substituting the following for the definition of bank:

“ ‘bank’ means a person who holds a licence granted by the Central Bank of Ireland under section 9 of the Central Bank Act 1971;”,

• (II) by substituting the following for the definitions of card account and cash card:

“ ‘card account’ means an account maintained by a promoter to which amounts of cash obtained by a person by means of a cash card are charged or to which amounts in respect of goods, services or cash obtained by a person by means of a combined card are charged;

‘cash card’ means a card, not being a combined card, issued by a promoter to a person having an address in the State by means of which cash may be obtained by the person from an automated teller machine;”,

and

• (III) by inserting the following definition after the definition of cash card:

“ ‘combined card’ means a cash card which also contains the functions of a debit card within the meaning assigned to it by section 123A;”,

• (ii) in subsections (2) and (11)(c) by substituting “cash cards and combined cards” for “cash cards”,

• (iii) in paragraphs (a) and (b) of subsection (3) and in subsection (9) by substituting “cash card or combined card” for “cash card”,

• (iv) in subsection (3) by substituting the following for paragraph (c):

• “(c) if the cash card is a replacement for a cash card, or a combined card is a replacement for a combined card, which is already included in the relevant statement,”,

and

• (v) by substituting the following for subsection (4):

• “(4) There shall be charged on every statement delivered in pursuance of subsection (2) a stamp duty at the rate of €10 in respect of each cash card and €20 in respect of each combined card included in the number of cash cards and combined cards shown in the statement.”,

• (b) by inserting the following section after section 123:

“Debit cards.	123A.—(1) In this section—
	‘accounting period’ has the same meaning as it has for the purposes of section 27 of the Taxes Consolidation Act 1997; ‘bank’ means a person who holds a licence granted by the Central Bank of Ireland under section 9 of the Central Bank Act 1971; ‘building society’ means a building society which stands incorporated, or deemed by section 124(2) of the Building Societies Act 1989, to be incorporated, under that Act and includes a company registered under section 106 of that Act; ‘card account’ means an account maintained by a promoter to which, amongst other possible amounts, amounts in respect of goods, services or cash obtained by a person by means of a debit card, within the meaning of this section, are charged; ‘debit card’ means a card, not being a combined card within the meaning assigned to it by section 123, issued by a promoter to a person having an address in the State by means of which goods, services or cash may be obtained by the person and amounts in respect of the goods, services or cash may be charged to the card account; ‘due date’ means— (a) in the case of the year 2002, the date of the end of the accounting period ending in that year, where that date is on or after 5 December 2002, and (b) in the case of the year 2003 and each subsequent year, the date of the end of the accounting period ending in that year; ‘promoter’ means a bank or a building society. (2) A promoter shall, within 2 months of the due date falling in the year 2002 and, within 1 month of the due date falling in the year 2003 and each subsequent year, deliver to the Commissioners a statement in writing showing the number of debit cards issued at any time by the promoter and which are valid— (a) in the case of the year 2002, at any time during the period from 5 December 2002 to the due date, (b) in the case of the year 2003, at any time during the accounting period ending in that year but not before 5 December 2002 where that date falls within the accounting period, and (c) in the case of the year 2004 and each subsequent year, at any time during the accounting period ending in that year. (3) Notwithstanding subsection (2)— (a) if the debit card is not used at any time during any period referred to in paragraph (a), (b) or (c) of subsection (2), (b) if the debit card is issued in respect of a card account— (i) which is a deposit account, and (ii) the average of the daily positive balances in the account does not exceed €12.70 in any of the periods referred to in paragraph (a), (b) or (c) of subsection (2), or (c) if the debit card is a replacement for a debit card which is already included in the relevant statement, then it shall not be included in the statement relating to such period. (4) There shall be charged on every statement delivered in pursuance of subsection (2) a stamp duty at the rate of €10 in respect of each debit card included in the number of cards shown in the statement. (5) The duty charged by subsection (4) on a statement delivered by a promoter pursuant to subsection (2) shall be paid by the promoter on delivery of the statement. (6) There shall be furnished to the Commissioners by a promoter such particulars as the Commissioners may deem necessary in relation to any statement required by this section to be delivered by the promoter. (7) In the case of failure by a promoter to deliver any statement required by subsection (2) within the time provided for in that subsection or of failure to pay the duty chargeable on any such statement on the delivery of the statement, the promoter shall be liable to pay, by means of penalty, in addition to the duty, interest on the duty at the rate of 0.0322 per cent for each day or part of a day from the date to which the statement relates (in this subsection referred to as the ‘due date’) to the date on which the duty is paid and also, by means of further penalty, a sum of €380 for each day the duty remains unpaid after the expiration of one month from the due date and each penalty shall be recoverable in the same manner as if the penalty were part of the duty. (8) The delivery of any statement required by subsection (2) may be enforced by the Commissioners under section 47 of the Succession Duty Act 1853 in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section. (9) A promoter shall be entitled to charge to the card account the amount of stamp duty payable in respect of the debit card by virtue of this section and may apply the terms and conditions governing that account to interest on that amount. (10) An account, charge card, company charge card or supplementary card within the meaning, in each case, assigned to it by section 124 and which attracts the payment of the stamp duty payable by virtue of that section shall not attract the payment of the stamp duty payable by virtue of this section. (11) Where a promoter changes its accounting period and, as a result, stamp duty under this section would not be chargeable or payable in a year (in this section referred to as the ‘relevant year’), then the following provisions shall apply: (a) duty shall be chargeable and payable in the relevant year as if the accounting period had not been changed, (b) duty shall also be chargeable and payable within one month of the date of the end of the accounting period ending in the relevant year, and (c) the duty chargeable and payable by virtue of paragraph (b) shall, subject to subsection (3), be chargeable and payable in respect of debit cards issued at any time by the promoter and which are valid at any time during the period from the due date as determined by paragraph (a) to the due date as determined by paragraph (b).”,

and

• (c) in section 124—

• (i) in subsection (1)(b), by substituting “maintained by the bank at any time during the 12 month period or any shorter period, as may be appropriate, ending on that 1st day of April” for “maintained by the bank on that 1st day of April”,

• (ii) in subsection (1)(c), by substituting “€40” for “€19”,

• (iii) in subsection (2)—

• (I) (A) in paragraph (c), by substituting “€20” for “€9.50”, and

• (B) in subparagraph (ii) of paragraph (d), by substituting “€40” for “€19”, and

• (II) (A) in paragraph (a), by deleting the definition of “quarter”, and

• (B) by substituting the following for paragraphs (b), (c) and (d):

• “(b) A promoter shall, in each year, within 3 months of the 1st day of April in that year, deliver to the Commissioners a statement in writing showing the number of charge cards, company charge cards and supplementary cards issued or renewed by the promoter and expressed to be valid at any time during the 12 month period or any shorter period, as may be appropriate, ending on the 1st day of April in that year.

• (c) There shall be charged on every statement delivered in accordance with paragraph (b) a stamp duty at the rate of €40 in respect of each charge card, company charge card and supplementary card included in the number of cards shown in the statement.”,

and

• (iv) in subparagraph (ii) of subsection (5)(a), by substituting “the 1st day of April in the year in which” for “the end of the quarter within 2 months of which”.

• (2)
• (a) Paragraph (a) of subsection (1) has effect as respects cash cards and combined cards valid at any time after 4 December 2002 which are included in any statement which falls to be delivered by a promoter under section 123 of the Principal Act after that date.

• (b) Paragraph (b) of subsection (1) has effect as respects any statement which falls to be delivered by a promoter under section 123A of the Principal Act on or after 5 December 2002.

• (c) Subparagraph (i) of subsection (1)(c) has effect as respects any statement which falls to be delivered by a bank under section 124 of the Principal Act in respect of a due date falling after 1 April 2003.

• (d) Subparagraph (ii) of subsection (1)(c) has effect as respects any statement which falls to be delivered by a bank under section 124 of the Principal Act on or after 5 December 2002.

• (e) Clause (I) of subsection (1)(c)(iii) has effect as respects any statement which falls to be delivered by a promoter under section 124 of the Principal Act on or after 5 December 2002.

• (f) Clause (II) of subsection (1)(c)(iii) has effect as respects any statement which falls to be delivered by a promoter under section 124 of the Principal Act in respect of a due date falling after 1 April 2003.

• (g) Subparagraph (iv) of subsection (1)(c) has effect as respects any statement which falls to be delivered by a promoter under section 124 of the Principal Act in respect of a due date falling after 1 April 2003.

141 Levy on certain financial institutions.

141.—The Principal Act is amended by inserting the following after section 126:

“126A.—(1) (a) In this section—

‘appropriate tax’ has the meaning assigned to it by section 256 of the Taxes Consolidation Act 1997;

‘assessable amount’, in relation to a relevant person, means the relevant retention tax in relation to the person;

‘average relevant deposits’, in relation to a company, means an amount specified in a notice given by the Central Bank to a company for the purposes of this section, being an amount equal to the average of the endmonth amounts of non-Government deposits of Irish residents for each of the calendar months in the year 2001;

‘company’ has the same meaning as in section 4 of the Taxes Consolidation Act 1997;

‘non-Government deposits of Irish residents’, in relation to a company, means the amount specified as non-Government deposits of Irish residents in a return made by the company before 4 December 2002 to the Central Bank of Ireland in accordance with section 18 of the Central Bank Act 1971 (as amended by section 37 of the Central Bank Act 1989 and section 8 of the Central Bank Act 1998);

‘due date’ means—

• (i) in respect of the year 2003, 20 October 2003,

• (ii) in respect of the year 2004, 20 October 2004, and

• (iii) in respect of the year 2005, 20 October 2005;

‘group assessable amount’, in relation to a year, means the aggregate of the assessable amounts in relation to companies which, at the due date for the year, are members of the group;

‘group relevant deposits’ for any year in relation to a group of companies, means the aggregate of the amounts of average relevant deposits in relation to companies which, on the due date for the year, are members of the group;

‘group stamp duty’, in relation to a group of companies, means the aggregate of the amounts of stamp duty which would, if subsection (7) were deleted, be payable under subsection (6) by companies which, on the due date for the year, are members of the group;

‘relevant person’ means a person who was obliged to pay—

• (i) appropriate tax under section 258(3), or

• (ii) an amount on account of appropriate tax under section 258(4) or 259(4),

of the Taxes Consolidation Act 1997 in the year 2001;

‘relevant retention tax’, in relation to a relevant person, means an amount determined by the formula—

A + B — C

where—

A is an amount equal to the aggregate of—

• (i) appropriate tax paid by the person in the year 2001 under section 258(3) of the Taxes Consolidation Act 1997, and

• (ii) the amount paid by the person in the year 2001 on account of appropriate tax under section 258(4) or 259(4) of that Act,

B is the aggregate of any amounts of appropriate tax, or any amounts on account of appropriate tax, paid by the person after the year 2001 which, in accordance with section 258 or 259 of that Act, should have been paid by the person in the year 2001, and

C is the aggregate of any amounts of appropriate tax paid by the person in the year 2001 which—

• (i) are included in A, and

• (ii) were agreed by the person and an officer of the Commissioners at or before the time of payment as being tax which, in accordance with the said section 258, should have been paid before the year 2001;

‘year 2001’ means the period of 12 months ending on 31 December 2001.

• (b) For the purposes of this section—

  • (i) 2 companies shall be deemed to be members of a group if one company is a 51 per cent subsidiary (within the meaning of section 9 of the Taxes Consolidation Act 1997) of the other company or both companies are 51 per cent subsidiaries of a third company, and

  • (ii) a company and all its 51 per cent subsidiaries shall form a group and, where that company is a member of a group as being itself a 51 per cent subsidiary, that group shall comprise all its 51 per cent subsidiaries and the first-mentioned group shall be deemed not to be a group; but a company which is not a member of a group shall be treated as if it were a member of a group which consists of that company, and accordingly references to group assessable amount, group relevant deposits and group stamp duty shall be construed as if they were respectively references to assessable amount, relevant deposits and stamp duty of that company.

• (2) A relevant person shall for each of the years 2003, 2004 and 2005, not later than the due date in respect of that year, deliver to the Commissioners a statement in writing showing—

  • (a) the assessable amount for that person, and

  • (b) any amount which has been apportioned to the person in accordance with subsection (7).

• (3) Where at any time in a period commencing on 1 January 2001 and ending immediately before a due date—

  • (a) a relevant person ceased to carry on a business in the course of which the person was obliged to pay any amount under section 258 or 259 of the Taxes Consolidation Act 1997, and

  • (b) another person (in this section referred to as the ‘successor person’) acquired the whole, or substantially the whole, of the business,

  the relevant person shall not be required to deliver a statement on the due date in accordance with subsection (2) but the successor person shall—

  - (i) where the successor person is, apart from this subsection, required to deliver a statement on the due date in accordance with subsection (2), increase the assessable amount in that statement by the assessable amount in relation to the relevant person, and
  
  - (ii) in any other case, deliver a statement on the due date in accordance with subsection (2) as if the successor person were the relevant person.
  

• (4) Where at any time in a period commencing at the time at which a successor person acquired the whole, or substantially the whole, of a business from the relevant person referred to in subsection (3) such that that subsection applies to the successor person and ending immediately before a due date—

  • (a) the successor person ceased to carry on the business so acquired, and

  • (b) another person (in this section referred to as the ‘next successor person’) acquired the whole, or substantially the whole, of the business.

  the successor person shall not be required to deliver a statement on the due date in accordance with subsection (3) but the next successor person shall—

  - (i) where the next successor person is, apart from this subsection, required to deliver a statement on the due date in accordance with subsection (2), increase the assessable amount in that statement by the assessable amount in relation to the relevant person, and
  
  - (ii) in any other case, deliver a statement on the due date in accordance with subsection (2) as if the next successor person were the relevant person.
  

• (5) Where at any time in a period commencing at the time at which a next successor person acquired the whole, or substantially the whole, of a business such that that person was required—

  • (a) to increase an assessable amount by an assessable amount in relation to a relevant person, or

  • (b) to deliver a statement as if the next successor person were a relevant person,

  and ending immediately before a due date—

  - (i) the next successor person ceased to carry on the business so acquired, and
  
  - (ii) another person (in this section referred to as the ‘further successor person’) acquired the whole, or substantially the whole, of the business,
  
    the next successor person shall not be required to deliver a statement on the due date in accordance with subsection (4) but the further successor person shall—
  
      - (I) where the further successor person is, apart from this subsection, required to deliver a statement on the due date in accordance with subsection (2), increase the assessable amount in that statement by the assessable amount in relation to the relevant person, and
  
      - (II) in any other case, deliver a statement on the due date in accordance with subsection (2) as if the further successor person were the relevant person,
  
        and so on for further successions.
  

• (6) Subject to subsection (7), there shall be charged on any statement delivered in accordance with subsection (2) a stamp duty of an amount equal to 50 per cent of the assessable amount.

• (7)

  • (a) Where, as respects a group of companies, the group stamp duty for a year exceeds an amount equal to 0.15 per cent of the group relevant deposits for the year, so much of the excess as bears to that amount the same proportion as the assessable amount for the year in relation to a company which is a member of the group bears to the group assessable amount for that year shall be apportioned to the company; but the companies which are members of the group may, by giving notice in writing to the Commissioners by the due date for that year, elect to have the excess apportioned in such manner as is specified in the notice.

  • (b) Where an amount (in this paragraph referred to as the ‘apportioned amount’) has been apportioned to a company under paragraph (a), the amount to be charged under subsection (6) shall be reduced by the apportioned amount.

• (8) The stamp duty charged by subsection (6) upon a statement delivered by a relevant person in accordance with subsection (2) shall be paid by that person upon delivery of the statement.

• (9) There shall be furnished to the Commissioners by a relevant person such particulars as the Commissioners may require in relation to any statement required by this section to be delivered by the person.

• (10) In the case of failure by a relevant person—

  • (a) to deliver any statement required to be delivered by that person under subsection (2), or

  • (b) to pay the stamp duty chargeable on any such statement,

  on or before the due date in respect of the year concerned, the person shall, from the due date concerned until the day on which the stamp duty is paid, be liable to pay, by way of penalty, in addition to the stamp duty, interest on the stamp duty at the rate of 0.0322 per cent per day or part of a day and also from 20 October of the year in which the statement is to be delivered in accordance with subsection (2), by way of penalty, a sum equal to 1 per cent of the stamp duty for each day the stamp duty remains unpaid and each penalty shall be recoverable in the same manner as if the penalty were part of the stamp duty.

• (11) The delivery of any statement required by subsection (2) may be enforced by the Commissioners under section 47 of the Succession Duty Act 1853, in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

• (12) The stamp duty and any penalty due under subsection (10) charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty payable by the relevant person which is under the care and management of the Commissioners.”.

142 Amendment of Part 11 (management provisions) of Principal Act.

142.—(1) Part 11 of the Principal Act is amended by inserting the following chapter after Chapter 6:

“CHAPTER 7

Time limit for repayment of stamp duty, interest on repayment and time limits for enquiries and assessments

Time limits for claiming a repayment of stamp duty,

159A.—(1) Without prejudice to any other provision of this Act containing a shorter time limit for the making of a claim for repayment, no stamp duty shall be repaid to a person in respect of a valid claim (within the meaning of section 159B), unless that valid claim is made within the period of 4 years from, as the case may be, the date the instrument was stamped by the Commissioners, the date the statement of liability was delivered to the Commissioners or the date the operator-instruction referred to in section 69 was made. (2) Subsection (1) shall not apply to a repayment claim in respect of stamp duty arising on or before the date of the passing of the Finance Act 2003, where a valid claim is made on or before 31 December 2004.

Interest on repayments of stamp duty.

159B.—(1) In this section— ‘relevant date’, in relation to a repayment of stamp duty, means: (a) the date which is 183 days after the date on which a valid claim in respect of the repayment is made to the Commissioners, or (b) where the repayment is due to a mistaken assumption in the operation of stamp duty on the part of the Commissioners, the date which is the date of the payment of stamp duty, interest, a surcharge or a penalty, as the case may be, which has given rise to that repayment. ‘relevant document’ means— (a) an instrument stamped by the Commissioners, or a statement of liability delivered to the Commissioners under any provision of this Act, or (b) an operator-instruction entered in a relevant system under section 69. ‘repayment’ means a repayment of stamp duty including a repayment of— (a) any interest charged, (b) any surcharge imposed, (c) any penalty incurred, under any provision of this Act in relation to stamp duty. (2) No interest shall be payable in respect of a repayment claim made under any other provision of this Act unless such interest falls to be paid under this section. (3) Subject to the provisions of this section, where a person is entitled to a repayment in respect of a relevant document, to which this section applies, the amount of the repayment shall, subject to a valid claim in respect of the repayment being made to the Commissioners and subject to section 1006A(2A) of the Taxes Consolidation Act 1997, carry simple interest at the rate of 0.011 per cent, or such other rate (if any) prescribed by the Minister by order under subsection (8), for each day or part of a day for the period commencing on the relevant date and ending on the date upon which the repayment is made. (4) A claim for repayment under this section shall only be treated as a valid claim when— (a) it has been made in accordance with the provisions of the law (if any) relating to stamp duty under which such claim is made. and (b) all information which the Commissioners may reasonably require to enable them determine if and to what extent a repayment is due, has been furnished to them. (5) Interest shall not be payable under this section if it amounts to €10 or less. (6) This section shall not apply in relation to any repayment or part of a repayment of stamp duty in respect of which interest is payable under or by virtue of any provision of any other enactment. (7) Income tax shall not be deductible on any payment of interest under this section and such interest shall not be reckoned in computing income for the purposes of the Tax Acts. (8) (a) The Minister may, from time to time, make an order prescribing a rate for the purposes of subsection (3). (b) Every order made by the Minister 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. (9) The Commissioners may make regulations as they deem necessary in relation to the operation of this section.

Time limits for making enquiries etc. and assessments by the Commissioners.

159C.—(1) In this section— ‘neglect’ means negligence or a failure to— (a) deliver to the Commissioners an instrument chargeable with stamp duty or a statement of liability required under any provision of this Act, or (b) enter a correct instruction in a relevant system within the meaning of section 68; ‘relevant instrument’ means— (a) an instrument stamped by the Commissioners or a statement delivered to the Commissioners under any provision of this Act, or (b) an instruction of the type referred to in section 76; ‘relevant period’, in relation to a relevant instrument, means the period of 4 years commencing on the date the instrument was stamped by the Commissioners, or the date the statement was delivered to the Commissioners, or the date the instruction was made. (2) The making of enquiries or the taking of other action by the Commissioners for the purpose of satisfying themselves as to the correctness or otherwise of the charge arising, either directly or indirectly, to stamp duty in respect of a relevant instrument may not be initiated after the expiry of the relevant period. (3) Notwithstanding any other provision in any other section of this Act, an assessment made in connection with or in relation to any relevant instrument may not be made after the expiry of the relevant period. (4) The time limit referred to in subsections (2) and (3) shall not apply where the Commissioners have reasonable grounds for believing that any form of fraud or neglect has been committed by or on behalf of any person in connection with or in relation to any relevant instrument which is the subject of any enquiries, action or assessment.”.

• (2) This section shall come into effect on such day or days as the Minister for Finance may by order or orders, either generally or with reference to any particular purpose or provision, appoint and different days may be so appointed for different purposes or different provisions.

143 Amendment of Schedule 1 to Principal Act.

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

• (a) in the Heading “BILL OF EXCHANGE or PROMISSORY NOTE” by substituting “€0.15” for “€0.08” in both places where it occurs,

• (b) in the Heading “CONVEYANCE or TRANSFER on sale of any stocks or marketable securities” by substituting “the amount so calculated shall, if less than €1, be rounded up to €1 and, if more than €1, be rounded down to the nearest €” for “the amount so calculated shall be rounded down to the nearest €”,

• (c) by substituting the paragraphs set out in Part 1 of Schedule 5 for paragraphs (7) to (14) of the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance”, and

• (d) by substituting the subparagraph set out in Part 2 of Schedule 5 for subparagraph (b) of paragraph (3) of the Heading “LEASE”.

• (2) Subsection (4)(c) does not apply to paragraphs (c) and (d) of subsection (1) as respects any instrument executed before 1 March 2003, where—

• (a) the effect of the application of subsection (4)(c) would be to increase the duty otherwise chargeable on the instrument, and

• (b) the instrument contains a statement, in such form as the Commissioners may specify, certifying that the instrument was executed solely in pursuance of a binding contract entered into prior to 4 December 2002.

• (3) The furnishing of an incorrect certificate for the purposes of subsection (2) shall be deemed to constitute the delivery of an incorrect statement for the purposes of section 1078 of the Taxes Consolidation Act 1997.

• (4)
• (a) Subsection (1) (a) applies and has effect with respect to bills of exchange (other than cheques) and promissory notes drawn on or after 1 January 2003 and with respect to cheques drawn on or after 5 December 2002,

• (b) subsections (1) (b) and (3) apply and have effect as respects instruments executed on or after 6 February 2003, and

• (c) subject to subsection (2), paragraphs (c) and (d) of subsection (1) apply and have effect as respects instruments executed on or after 4 December 2002.

PART 5 Capital Acquisitions Tax

144 Interpretation (Part 5).

144.—In this Part “Principal Act” means the Capital Acquisitions Tax Consolidation Act 2003.

145 Time limits for capital acquisitions tax.

145.—(1) The Principal Act is amended—

• (a) in section 18, by deleting subsection (5),

• (b) in section 46, by inserting the following after subsection (7):

• “(7A) The making of enquiries by the Commissioners for the purposes of subsection (7)(a) or the authorising of inspections by the Commissioners under subsection (7)(b) in connection with or in relation to a relevant return (within the meaning given in section 49(6A)(b)) may not be initiated after the expiry of 4 years commencing on the date that the relevant return is received by the Commissioners.

• (7B)

  • (a) The time limit referred to in subsection (7A) shall not apply where the Commissioners have reasonable grounds for believing that any form of fraud or neglect has been committed by or on behalf of any accountable person in connection with or in relation to any relevant return which is the subject of any enquiries or inspections.

  • (b) In this subsection ‘neglect’ means negligence or a failure to deliver a correct relevant return (within the meaning given in section 49(6A)(b)).”,

• (c) in section 49, by inserting the following after subsection (6):

• “(6A)

  • (a) For the purposes of subsection (6) an assessment, a correcting assessment or an additional assessment made in connection with or in relation to a relevant return may not be made after the expiry of 4 years from the date that the relevant return is received by the Commissioners.

  • (b) In this subsection ‘relevant return’ means a return within the meaning of section 21(e) or a return or an additional return within the meaning of section 46.

• (6B) The time limit referred to in subsection (6A) shall not apply where the Commissioners have reasonable grounds for believing that any form of fraud or neglect (within the meaning given in section 46(7B)(b)) has been committed by or on behalf of any accountable person in connection with or in relation to any relevant return (within the meaning given in subsection (6A)) which is the subject of assessment.”,

and

• (d) by substituting the following for section 57:

“Overpayment of tax.

57.—(1) In this section— ‘relevant date’, in relation to a repayment of tax means— (a) the date which is 183 days after the date on which a valid claim in respect of the repayment is made to the Commissioners, or (b) where the repayment is due to a mistaken assumption in the operation of the tax on the part of the Commissioners, the date which is the date of the payment of the tax which has given rise to that repayment; ‘repayment’ means a repayment of tax including a repayment of— (a) any interest charged, (b) any surcharge imposed, (c) any penalty incurred, under any provision of this Act in relation to tax; ‘tax’ includes interest charged, a surcharge imposed or a penalty incurred under any provision of this Act. (2) Where, a claim for repayment of tax made to the Commissioners, is a valid claim, the Commissioners shall, subject to the provisions of this section, give relief by means of repayment of the excess or otherwise as is reasonable and just. (3) Notwithstanding subsection (2), no tax shall be repaid to an accountable person in respect of a valid claim unless that valid claim is made within the period of 4 years commencing on the later of the valuation date or the date of the payment of the tax concerned. (4) Subsection (3) shall not apply to a claim for repayment of tax arising by virtue of section 18(3), Article VI of the First Schedule to the Finance Act 1950, or Article 9 of the Schedule to the Double Taxation Relief (Taxes on Estates of Deceased Persons and Inheritances and on Gifts) (United Kingdom) Order 1978 (S.I. No. 279 of 1978). (5) Subsection (3) shall not apply to a claim for repayment of tax arising on or before the date of the passing of the Finance Act 2003, where a valid claim is made on or before 31 December 2004. (6) Subject to the provisions of this section, where a person is entitled to a repayment, the amount of the repayment shall, subject to a valid claim in respect of the repayment being made to the Commissioners and subject to section 1006A(2A) of the Taxes Consolidation Act 1997, carry simple interest at the rate of 0.011 per cent, or such other rate (if any) prescribed by the Minister for Finance by order under subsection (11), for each day or part of a day for the period commencing on the relevant date and ending on the date upon which the repayment is made. (7) A claim for repayment under this section shall only be treated as a valid claim when— (a) it has been made in accordance with the provisions of the law (if any) relating to tax under which such claim is made, and (b) all information which the Commissioners may reasonably require to enable them determine if and to what extent a repayment is due, has been furnished to them. (8) Interest shall not be payable under this section if it amounts to €10 or less. (9) This section shall not apply in relation to any repayment or part of a repayment of tax in respect of which interest is payable under or by virtue of any provision of any other enactment. (10) Income tax shall not be deductible on any payment of interest under this section and such interest shall not be reckoned in computing income for the purposes of the Tax Acts. (11) (a) The Minister for Finance may, from time to time, make an order prescribing a rate for the purposes of subsection (6). (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. (12) The Commissioners may make regulations as they deem necessary in relation to the operation of this section.”.

• (2) This section shall come into operation on such day or days as the Minister for Finance may by order or orders appoint either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

146 Administrative changes.

146.—(1) The Principal Act is amended—

• (a) by substituting the following for section 25:

Penalty.

25.—(1) Any person who contravenes or fails to comply with any requirement under section 21(e) is liable to a penalty of— (a) €1,265, or (b) twice the amount of tax payable in respect of the taxable inheritance to which the return relates, whichever is the lesser. (2) Where a person fails to comply with a requirement to deliver a return under section 21(e), by reason of fraud or neglect by that person, that person shall be liable to a penalty of— (a) €1,265, and (b) the amount, or in the case of fraud twice the amount, of the difference specified in subsection (3). (3) The difference referred to in subsection (2)(b) is the difference between— (a) the amount of tax paid by that person in respect of the taxable inheritance to which the return relates, and (b) the amount of tax which would have been payable if the return had been delivered by that person and the return had been correct.”,

• (b) by inserting the following after section 45:

“Obligation to retain certain records.

45A.—(1) In this section— ‘records’ includes books, accounts, documents, and any other data maintained manually or by any electronic, photographic or other process, relating to— (a) property, of any description, which under or in consequence of any disposition, a person becomes beneficially entitled in possession to, otherwise than for full consideration in money or money's worth paid by that person, (b) liabilities, costs and expenses properly payable out of that property, (c) consideration given in good faith, in money or money's worth, paid by a person for that property, (d) a relief or an exemption claimed under any provision of this Act, and (e) the valuation, on the valuation date or other date, as the case may be, of property the subject of the disposition. (2) Every person who is an accountable person shall retain, or cause to be retained on his or her behalf, records of the type referred to in subsection (1) as are required to enable— (i) a true return, additional return or statement to be made for the purposes of this Act, or (ii) a claim to a relief or an exemption under any provision of this Act to be substantiated. (3) Records required to be retained by virtue of this section shall be retained— (a) in written form in an official language of the State, or (b) subject to section 887(2) of the Taxes Consolidation Act 1997, by means of any electronic, photographic or other process. (4) Records retained for the purposes of subsections (2) and (3) shall be retained by the person required to retain the records— (a) where the requirements of section 21(e) or section 46(2), requiring the preparation and delivery of a return on or before the date specified in each of those provisions, are met, for the period of 6 years commencing on the valuation date of the gift or inheritance, or (b) notwithstanding paragraph (a), where an accountable person fails to comply with the requirements of the provisions referred to in paragraph (a) in the manner so specified, or, where any person is required to deliver a return, additional return or statement under this Act other than the provisions referred to in paragraph (a), for the period of 6 years commencing on the date that the return, additional return or statement is received by the Commissioners. (5) Any person who fails to comply with subsection (2), (3) or (4) in respect of the retention of any records relating to a gift or inheritance is liable to a penalty of €1,520; but a penalty shall not be imposed under this section on any person who is not liable to tax in respect of that gift or inheritance.”,

• (c) by inserting the following after section 46:

“Expression of doubt.

46A.—(1) Where an accountable person is in doubt as to the correct application of law to, or the treatment for tax purposes of, any matter to be included in a return or additional return to be delivered by such person under this Act, then that person may deliver the return or additional return to the best of that person's belief but that person shall draw the Commissioners' attention to the matter in question in the return or additional return by specifying the doubt and, if that person does so, that person shall be treated as making a full and true disclosure with regard to that matter. (2) Subject to subsection (3), where a return or additional return, which includes an expression of doubt as to the correct application of law to, or the treatment for tax purposes of, any matter contained in the return or additional return, is delivered by an accountable person to the Commissioners in accordance with this section, then section 51(2) does not apply to any additional liability arising from a notification to that person by the Commissioners of the correct application of the law to, or the treatment for tax purposes of, the matter contained in the return or additional return the subject of the expression of doubt, on condition that such additional liability is accounted for and remitted to the Commissioners within 30 days of the date on which that notification is issued. (3) Subsection (2) does not apply where the Commissioners do not accept as genuine an expression of doubt as to the correct application of law to, or the treatment for tax purposes of, any matter contained in the return or additional return and an expression of doubt shall not be accepted as genuine where the Commissioners are of the opinion that the person was acting with a view to the evasion or avoidance of tax. (4) Where the Commissioners do not accept an expression of doubt as genuine they shall notify the accountable person accordingly within the period of 30 days after the date that the expression of doubt is received by the Commissioners, and the accountable person shall account for any tax, which was not correctly accounted for in the return or additional return referred to in subsection (1) and section 51(2) applies accordingly. (5) An accountable person who is aggrieved by a decision of the Commissioners that that person's expression of doubt is not genuine may, by giving notice in writing to the Commissioners within the period of 30 days after the notification of the said decision, require the matter to be referred to the Appeal Commissioners.”,

and

• (d) in section 58—

• (i) by inserting the following after subsection (1):

• “(1A) Where a person fails to comply with a requirement to deliver a return or additional return under subsection (2), (6) or (8) of section 46, by reason of fraud or neglect by that person, that person is liable to a penalty of—

  • (a) €2,535, and

  • (b) the amount, or in the case of fraud twice the amount, of the difference specified in subsection (5A).”,

and

• (ii) by inserting the following after subsection (5):

• “(5A) The difference referred to in paragraph (b) of subsection (1A) is the difference between—

  • (a) the amount of tax paid by that person in respect of the taxable gift or taxable inheritance to which the return or additional return relates, and

  • (b) the amount of tax which would have been payable if the return or additional return had been delivered by that person and that return or additional return had been correct.”.

• (2) This section shall come into effect on such day or days as the Minister for Finance may by order or orders, either generally or with reference to any particular purpose or provision, appoint and different days may be so appointed for different purposes or different provisions.

147 Amendment of section 47 (signing of returns, etc.) of Principal Act.

147.—Section 47 of the Principal Act is amended by inserting the following after subsection (5):

• “(6) For the purposes of this section, references to an oath shall be construed as including references to an affirmation and references in this section to the administration or making of an oath shall be construed accordingly.”.

148 Amendment of section 55 (payment of tax on certain assets by instalments) of Principal Act.

148.—(1) Section 55(2)(b) of the Principal Act is amended by substituting “0.0241 per cent or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each day or part of a day” for “0.75 per cent or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month”.

• (2) Subsection (1) applies on and from 1 September 2002 to interest payable under the provision mentioned in subsection (1) in respect of an amount due to be paid whether before, on or after that date in accordance with that provision.

149 Amendment of section 69 (exemption of small gifts) of Principal Act.

149.—Section 69(2) of the Principal Act is amended as respects relevant periods ending after 31 December 2002, by substituting “€3,000” for “€1,270”.

150 Amendment of section 81 (exemption of certain securities) of Principal Act.

150.—(1) Section 81 of the Principal Act is amended—

• (a) in subsection (2)(a), by substituting “15 years” for “6 years”, and

• (b) in subsection (4), by substituting “15 years” for “6 years”.

(2)(a) Subsection (1)(a) has effect in relation to securities or units comprised in a gift or an inheritance where the date of the gift or the date of the inheritance is on or after 24 February 2003 and the securities or units—