Finance Act 2004

Type Act

Publication 2004-03-25

State In force

Source Irish Statute Book

articles 94

51.—Section 100 of the Finance Act 1999 is amended in subsection (1) by substituting the following for paragraph (l) (inserted by the Finance Act 2001):

“(l) mineral oil used by a manufacturer in the production of mineral oil;

(m) heavy oil which is intended for use or which has been used in aircraft engines during testing and maintenance of such engines.”.

52 Amendment of section 6 of Roads Act 1920.

52.—(1) Section 6 of the Roads Act 1920 (as amended by section 131 of the Finance Act 1992) is amended by deleting subsection (2).

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

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

53.—(1) Section 141 of the Finance Act 1992 is amended—

(a) in subsection (2)—

(i) by deleting paragraph (d), and

(ii) by substituting “subsections (7) and (11)” for “subsections (7), (11) and (15)” in paragraph (s) (inserted by section 74 of the Finance Act 1996),

and

(b) in subsection (3) (inserted by section 56(b) of the Finance Act 1993) by substituting “other than subsections (6), (7) and (11)” for “other than subsections (6), (7), (11) and (15)”.

(2) Subsection (1)(a)(i) comes into operation on such day as the Minister for Finance by order appoints.

PART 3 Value-Added Tax

54 Interpretation (Part 3).

54.—In this Part—

“Act of 1978” means the Value-Added Tax (Amendment) Act 1978;

“Act of 2001” means the Finance Act 2001;

“Principal Act” means the Value-Added Tax Act 1972.

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

55.—Section 1 of the Principal Act is amended by substituting the following for the definition of “taxable dealer”:

“‘taxable dealer’—

(a) in relation to supplies of gas through the natural gas distribution system, or of electricity, has the meaning assigned to it by section 3(6A),

(b) in relation to supplies of movable goods other than a means of transport, has the meaning assigned to it by section 10A, and

56 Amendment of section 3 (supply of goods) of Principal Act.

56.—Section 3 of the Principal Act is amended—

(a) in subsection (6) (inserted by the Finance Act 1992) by substituting in the proviso to paragraph (d) “such supplies,” for “such supplies.” and by inserting the following paragraphs after the proviso to paragraph (d):

“(e) in the case of the supply of gas through the natural gas distribution system, or of electricity, to a taxable dealer, whether in the State, or in another Member State of the Community, or outside the Community, the place where that taxable dealer has established the business concerned or has a fixed establishment for which the goods are supplied, or in the absence of such a place of business or fixed establishment the place where that taxable dealer has a permanent address or usually resides,

(f) in the case of the supply of gas through the natural gas distribution system, or of electricity, to a customer other than a taxable dealer, the place where that customer has effective use and consumption of those goods; but if all or part of those goods are not consumed by that customer, then the goods not so consumed shall be deemed to have been supplied to that customer and used and consumed by that customer at the place where that customer has established the business concerned or has a fixed establishment for which the goods are supplied or in the absence of such a place of business or fixed establishment, the place where that customer has a permanent address or usually resides,”,

and

(b) by inserting the following after subsection (6):

“(6A) In subsection (6) ‘taxable dealer’ means a taxable person whose principal business in respect of supplies of gas through the natural gas distribution system, or of electricity, received by that person, is the supply of those goods for consideration in the course or furtherance of business and whose own consumption of those goods is negligible.”.

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

57.—Section 4 of the Principal ACt is amended by substituting the following for subsection (6)—

“(6) Notwithstanding anything in this section or in section 2 tax shall not be charged on the supply of immovable goods—

(a) in relation to which a right in favour of the person making the supply to a deduction under section 12 in respect of any tax borne or paid on the supply or development of the goods did not arise and would not, apart from section 3(5)(b)(iii), have arisen, or

(b) which had been occupied before the specified day and had not been developed between that date and the date of the supply,

other than a supply of immovable goods to which the provisions of subsection (5) apply.”.

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

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

(a) in subsection (1) (as amended by the Finance Act 2003) by substituting “in paragraph (f) or (g) of subsection (1A)” for “in subsection (1A)(f)”, and

(b) by inserting the following after subsection (1A) (f):

“(g) Where a taxable person not established in the State supplies gas through the natural gas distribution system, or electricity, to a recipient in the State and where such recipient 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 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.”.

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

59.—Section 11 of the Principal Act is amended in subsection (1)(f) (inserted by the Finance Act 1992) by substituting “4.4 per cent” for “4.3 per cent” (inserted by the Act of 2001).

60 Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

60.—Section 12 of the Principal Act is amended in subsection (1)(a) by inserting the following after subparagraph (v):

“(va) the tax chargeable during the period, being tax for which the taxable person is liable by virtue of section 8(1A)(f) in respect of goods which are installed or assembled; but this subparagraph shall apply only where the taxable person would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such person by another taxable person,

(vb) the tax chargeable during the period, being tax for which the taxable person is liable by virtue of section 8(1A)(g) in respect of the supply to such person of gas through the natural gas distribution network, or of electricity; but this subparagraph shall apply only where the taxable person would be entitled to a deduction of that tax elsewhere under this subsection if that tax had been charged to such person by another taxable person,”.

61 Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

61.—Section 12A (inserted by the Act of 1978) of the Principal Act is amended in subsection (1) by substituting “4.4 per cent” for “4.3 per cent” (inserted by the Act of 2001).

62 Amendment of section 15B (goods in transit (additional provisions)) of Principal Act.

62.—Section 15B (inserted by the European Communities (Value-Added Tax) Regulations 1994 (S.I. 448 of 1994)) of the Principal Act is amended—

(a) by substituting “before the date of accession” for “on or before the 31st day of December, 1994” in each place where it occurs,

(b) by substituting “date of accession” for “1st day of January, 1995” in each place where it occurs,

(d) by inserting the following after subsection (5):

“(5A) Subsection (5)(c) shall be deemed to be complied with where it is shown to the satisfaction of the Revenue Commissioners that—

(i) the date of the first use of the means of transport was before 1 January 1987 in the case of means of transport entering the State from the Republic of Austria, the Republic of Finland (excluding the land Islands) or the Kingdom of Sweden,

(ii) the date of the first use of the means of transport was before 1 May 1996 in the case of means of transport entering the State from the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia or the Slovak Republic, or

(iii) the tax due by reason of the importation does not exceed €130.”,

and

(e) in paragraph (7)(a)—

(i) by inserting the following definition before the definition of “the enlarged Community”:

“ ‘date of accession’ means 1 January 1995 in respect of the Republic of Austria, the Republic of Finland (excluding the land Islands) and the Kingdom of Sweden or 1 May 2004 in respect of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic;”,

and

(ii) by substituting the following for the definition of “new Member State”:

“ ‘new Member State’ means any state referred to in the definition of ‘date of accession’ with effect from the relevant date.”.

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

63.—Section 17 of the Principal Act is amended in subsection (1) by inserting the following after “section 11(1),”:

“or who supplies goods or services to a person in another Member State who is liable to pay value-added tax pursuant to Council Directive No. 77/388/EEC of 17 May 1977 on such supply,”.

64 Amendment of First Schedule to Principal Act.

64.—The First Schedule to the Principal Act is amended—

(a) in paragraph (i)(g) (as substituted by the Finance Act 1991)—

(i) by substituting “the management of an undertaking specified in one of the following clauses, and such management may comprise any of the three functions listed in Annex II to Directive 2001/107/EC of the European Parliament and Council (being the functions included in the activity of collective portfolio management) where those functions are supplied by the person with responsibility for the provision of the functions concerned in respect of the undertaking, and which is—” for “the management of an undertaking which is—”,

(ii) in clause (IV) by substituting “this subparagraph apply, or” for “this subparagraph apply;”, and

(iii) by inserting the following after clause (IV):

“(V) an undertaking which is a qualifying company for the purposes of section 110 of the Taxes Consolidation Act 1997;”,

(b) in paragraph (xxv)(b) by substituting “the school;” for “the school.”, and

“(xxvi) the importation of gas through the natural gas distribution system, or the importation of electricity.”.

65 Amendment of Fourth Schedule to Principal Act.

65.—The Fourth Schedule to the Principal Act is amended—

(a) by inserting the following after paragraph (iiic):

“(iiid) the provision of access to, and of transport or transmission through, natural gas and electricity distribution systems and the provision of other directly linked services;”,

and

(b) in paragraph (v) by inserting “and financial fund management functions” after “re-insurance”.

PART 4 Stamp Duties

66 Interpretation (Part 4).

66.—In this Part “Principal Act” means the Stamp Duties Consolidation Act 1999.

67 Amendment of section 73 (exemptions) of Principal Act.

67.—(1) Section 73 of the Principal Act is amended in subsection (1)—

(a) in paragraph (b) by substituting “in priority, or” for “in priority.”, and

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

“(c) in respect of an operator-instruction effecting a transfer of rights to securities, in a company which is not an unquoted company within the meaning of section 63, where that transfer is a renunciation of those rights under a letter of allotment.”.

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

68 Amendment of section 80 (reconstructions or amalgamations of companies) of Principal Act.

68.—(1) Section 80 of the Principal Act is amended by inserting the following after subsection (2):

“(2A) (a) This subsection applies to any property, an instrument for the conveyance of which is chargeable to stamp duty under or by reference to 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’ in Schedule 1.

(b) Subsection (2) shall not apply to an instrument made for the purposes of or in connection with the transfer of an undertaking of a target company that includes any property to which this subsection applies, where a conveyance of that property has not been obtained by the target company prior to the date of the execution of the instrument.”.

(2) This section has effect in relation to instruments executed on or after 20 February 2004.

69 Amendment of section 81 (young trained farmers) of Principal Act.

69.—Section 81 of the Principal Act is amended by substituting the following for subsection (9):

“(9) This section shall apply as respects instruments executed before the date of the passing of the Finance Act 2004.”.

70 Further relief from stamp duty in respect of transfers to young trained farmers.

70.—The Principal Act is amended—

(a) by inserting the following after section 81:

“81A.—(1) In this section and Schedule 2A—

‘interest in land’ means an interest which is not subject to any power (whether or not contained in the instrument) on the exercise of which the land, or any part of or any interest in the land, may be revested in the person from whom it was conveyed or transferred or in any person on behalf of such person;

‘land’ means agricultural land and includes such farm buildings, farm houses and mansion houses (together with the lands occupied with such farm buildings, farm houses and mansion houses) as are of a character appropriate to the land;

‘Schedule 2A qualification’ means a qualification set out in Schedule 2A;

‘young trained farmer’ means a person in respect of whom it is shown to the satisfaction of the Commissioners that—

(a) the person had not attained the age of 35 years on the date on which the instrument, as respect which relief is being claimed under this section, was executed, and

(b) the conditions referred to in subsection (2), (3) or (4) are satisfied.

(2) The conditions required by this subsection are that the person, referred to in paragraph (a) of the definition of young trained farmer, is the holder of a Schedule 2A qualification, and—

(a) in the case of a qualification set out in subparagraph (f) of paragraph 1, or subparagraph (h) of paragraph 2, of that Schedule, is also the holder of a certificate awarded by the Further Education and Training Awards Council for achieving the minimum stipulated standard in assessments completed in a course of training approved by Teagasc—

(i) in either or both agriculture and horticulture, the aggregate duration of which exceeded 100 hours, and

(ii) in farm management, the aggregate duration of which exceeded 80 hours,

(b) in the case of a qualification set out in subparagraph (b), (c) or (d) of paragraph 3 of that Schedule, is also the holder of a certificate awarded by the Further Education and Training Awards Council for achieving the minimum stipulated standard in assessments completed in a course of training, approved by Teagasc, in farm management, the aggregate duration of which exceeded 80 hours.

(3) The conditions required by this subsection are that the person, referred to in paragraph (a) of the definition of young trained farmer—

(a) has achieved the required standard for entry into the third year of a full-time course in any discipline of 3 or more years' duration at a third-level institution, and that has been confirmed by that institution, and

(b) is the holder of a certificate awarded by the Further Education and Training Awards Council for achieving a minimum stipulated standard in assessments completed in a course of training, approved by Teagasc—

(i) in either or both agriculture and horticulture, the aggregate duration of which exceeded 100 hours, and

(ii) in farm management, the aggregate duration of which exceeded 80 hours.

(4) The conditions required by this subsection are that the person, referred to in paragraph (a) of the definition of young trained farmer, is the holder of a letter of confirmation from Teagasc, confirming satisfactory completion of a course of training, approved by Teagasc, for persons, who in the opinion of Teagasc, are restricted in their learning capacity due to physical, sensory, mental health or intellectual disability.

(5) For the purposes of subsection (2), where Teagasc certifies that—

(a) any other qualification corresponds to a Schedule 2A qualification, and

(b) that other qualification is deemed by the National Qualifications Authority of Ireland to be at least at a standard equivalent to that of the Schedule 2A qualification,

the Commissioners shall treat that other qualification as if it were a Schedule 2A qualification.

(6) No stamp duty shall be chargeable under or by reference to 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’ in Schedule 1 on any instrument to which this section applies.

(7) This section applies to any instrument which operates as a conveyance or transfer (whether on sale or as a voluntary disposition inter vivos) of an interest in land to a young trained farmer where—

(a) the instrument contains a certificate that this section applies,

(b) a declaration made in writing by the young trained farmer, or each of them if there is more than one, is furnished to the Commissioners when the instrument is presented for stamping, confirming, to the satisfaction of the Commissioners, that it is the intention of such person, or each such person, for a period of not less than 5 years from the date of execution of the instrument to—

(i) spend not less than 50 per cent of that person's normal working time, farming the land, and

(ii) retain ownership of the land,

and

(c) the identifying reference number, known as the Personal Public Service (PPS) Number, of the young trained farmer, or each of them if there is more than one, is furnished to the Commissioners when the instrument is presented for stamping.

(8) Notwithstanding subsection (7), this section shall apply where the property is conveyed or transferred into joint ownership where all the joint owners are young trained farmers or where any of the joint owners is a spouse of another joint owner who is a young trained farmer.

(9) (a) For the purposes of this subsection, a person ‘achieves the standard’ at any time where at that time the person—

(i) is the holder of a Schedule 2A qualification or a qualification treated, by virtue of subsection (5), as being a Schedule 2A qualification,

(ii) satisfies the conditions set out in subsection (3)(a), or

(iii) satisfies the conditions set out in subsection (4),

and whether a person has or has not achieved the standard shall be construed accordingly.

(b) This subsection applies to an instrument by means of which land is conveyed or transferred to a person (in this subsection referred to as the ‘transferee’) who on the date the instrument was executed—

(i) was not a young trained farmer by reason only of the fact that the transferee on that date had not achieved the standard, and

(ii) had completed not less than one academic year of a course necessary to be taken to achieve the standard.

(c) Where within 3 years from the date of execution of an instrument to which this subsection refers, the transferee achieves the standard, the Commissioners shall, on production to them, within 6 months after the date on which the standard was achieved, of—

(i) the stamped instrument,

(ii) subject to paragraph (d), the declaration referred to in subsection (7)(b),

(iii) the Personal Public Service (PPS) Number referred to in subsection (7)(c), and

(iv) satisfactory evidence of compliance with this subsection,

cancel and refund such duty as would not have been chargeable had this section applied to the instrument when it was first presented for stamping.

(d) For the purposes of paragraph (c)(ii), the period of 5 years referred to in subsection (7)(b) as it relates to the requirement that a person spend not less than 50 per cent of the person's normal working time farming land, shall be reduced by the period of time that elapsed between the date of the instrument and the date on which the transferee achieved the standard.

(10) Subsection (6) shall not apply to an instrument unless it has, in accordance with section 20, been stamped with a particular stamp denoting that it is not chargeable with any duty.

(11)(a) If and to the extent that any person to whom land was conveyed or transferred by any instrument in respect of which relief from duty under this section was allowed—

(i) disposes of such land, or part of such land, within a period of 5 years from the date of execution of the instrument, and

(ii) does not replace such land with other land within a period of one year from the date of such disposal,

then such person or, where there is more than one such person, each such person, jointly and severally, shall become liable to pay to the Commissioners a penalty equal to the amount of the duty which would have been charged in the first instance if the land disposed of had been conveyed or transferred by an instrument to which this section had not applied, together with interest on that amount as may so become payable charged at a rate of 0.0322 per cent for each day or part of a day from the date of disposal of the land to the date the penalty is remitted.

(b) Where any claim for relief from duty under this section has been allowed and it is subsequently found that a declaration made, or a certificate contained in the instrument, in accordance with subsection (7)—

(i) was untrue in any material particular which would have resulted in the relief afforded by this section not being granted, and

(ii) was made, or was included, knowing same to be untrue or in reckless disregard as to whether it was true or not,

then any person who made such a declaration, or where a false certificate has been included, the person or persons to whom the land is conveyed or transferred by the instrument, jointly and severally, shall be liable to pay to the Commissioners as a penalty an amount equal to 125 per cent of the duty which would have been charged on the instrument in the first instance had all the facts been truthfully declared and certified, together with interest on that amount as may so become payable charged at a rate of 0.0322 per cent for each day or part of a day from the date when the instrument was executed to the date the penalty is remitted.

(12) Notwithstanding subsection (11)—

(a) where relief under this section was allowed in respect of any instrument, a disposal by a young trained farmer of part of the land to a spouse for the purpose of creating a joint tenancy in the land, or where the instrument conveyed or transferred the land to joint owners, a disposal by one joint owner to another of any part of the land, shall not be regarded as a disposal to which subsection (11) applies, but on such disposal, such part of the land shall be treated for the purposes of subsection (11) as if it had been conveyed or transferred immediately to the spouse or other joint owner by the instrument in respect of which relief from duty under this section was allowed in the first instance,

(b) a person shall not be liable to more than one penalty under paragraph (b) of subsection (11),

(c) a person shall not be liable to a penalty under paragraph (a) of subsection (11), if and to the extent that such person has paid a penalty under paragraph (b) of subsection (11), and

(d) a person shall not be liable to a penalty under paragraph (b) of subsection (11), if and to the extent that such person has paid a penalty under paragraph (a) of subsection (11).

(13) A person who, before the date of the passing of the Finance Act 2004, for the purposes of section 81—

(a) is the holder of a qualification set out in Schedule 2 or a qualification certified by Teagasc as corresponding to a qualification set out in Schedule 2, and—

(i) a satisfactory attendance at a course of training in farm management, the aggregate duration of which exceeded 80 hours, is required, shall be deemed, for the purposes of this section, to be the holder of a qualification corresponding to that set out in subparagraph (b) of paragraph 3 of Schedule 2A, or

(ii) a satisfactory attendance at a course of training is not required, shall be deemed, for the purposes of this section, to be the holder of a qualification corresponding to that set out in subparagraph (a) of paragraph 2 of Schedule 2A,

(b) satisfies the requirements set out in paragraph (b)(ii)(I) of the definition of young trained farmer in subsection (1) of that section, shall be deemed for the purposes of this section, to have satisfied the requirements set out in subsection (3)(a), and

(i) in farm management, the aggregate duration of which exceeded 80 hours, shall be deemed for the purposes of this section to be the holder of a certificate referred to in subsection (2)(b), or

(ii) in either or both agriculture and horticulture, the aggregate duration of which exceeded 180 hours, shall be deemed for the purposes of this section to be the holder of a certificate referred to in subsection (3)(b).

(14) This section shall apply as respects instruments executed on or after the date of the passing of the Finance Act 2004 and on or before 31 December 2005.”,

and

(b) by inserting the following after Schedule 2:

“Section 81A.SCHEDULE 2A

Qualifications for Applying for Relief From Stamp Duty in Respect of Transfers to Young Trained Farmers

Qualifications awarded by the Further Education and Training Awards Council:

(a) Vocational Certificate in Agriculture — Level 3;

(b) Advanced Certificate in Agriculture;

(d) Vocational Certificate in Horse Breeding and Training — Level 3;

(e) Vocational Certificate in Forestry — Level 3;

(f) Awards other than those referred to in subparagraphs (a) to (e) of this paragraph which are at a standard equivalent to the standard of an award under subparagraph (a) of this paragraph.

Qualifications awarded by the Higher Education and Training Awards Council:

(a) National Certificate in Agriculture;

(b) National Diploma in Agriculture;

(d) National Certificate in Business Studies in Agri-Business;

(e) National Certificate in Technology in Agricultural Mechanisation;

(f) National Diploma in Horticulture;

(g) National Certificate in Business Studies in Equine Studies;

(h) National Certificate or Diploma awards other than those referred to in subparagraphs (a) to (g) of this paragraph.

Qualifications awarded by other third-level institutions:

(a) Primary degrees awarded by the faculties of General Agriculture and Veterinary Medicine at University College Dublin;

(b) Bachelor of Science (Education) in Biological Sciences awarded by the University of Limerick;

(d) Diploma or Certificate in Science (Equine Science) awarded by the University of Limerick.”.

71 Amendment of section 91 (new dwellinghouses and apartments with floor area certificate) of Principal Act.

71.—Section 91 of the Principal Act is amended by inserting the following after subsection (2):

“(3) This section shall apply as respects instruments executed before 1 April 2004.”.

72 New dwellinghouses and apartments with floor area compliance certificate.

72.—(1) The Principal Act is amended by inserting the following after section 91:

“91A.—(1) (a) In this section—

‘floor area compliance certificate’, in respect of a dwellinghouse or apartment, means a certificate issued by the Minister for the Environment, Heritage and Local Government certifying that that Minister is satisfied, on the basis of the information available to that Minister at the time of so certifying, that—

(i) the total floor area of the dwellinghouse or apartment—

(I) does not, or will not, exceed 125 square metres, and

(II) is not, or will not, be less than 38 square metres,

and

(ii) the dwellinghouse or apartment complies or will comply with such conditions, if any, as may be set down in regulations made by that Minister from time to time for the purposes of this section;

‘valid floor area compliance certificate’ means a floor area compliance certificate which has not been withdrawn.

(b) For the purposes of this section the Minister for the Environment, Heritage and Local Government—

(i) may make regulations from time to time—

(I) specifying the manner in which the total floor area of a dwellinghouse or apartment is to be measured, and

(II) setting down conditions in relation to standards of construction of dwellinghouses and apartments and the provision of water, sewerage and other services therein,

(ii) may issue a floor area compliance certificate in respect of a dwellinghouse or apartment to a person where that Minister is satisfied, on the basis of information provided to that Minister by the person, or by a person on behalf of the person, that the person is registered for value-added tax and is the holder of a current certificate of authorisation within the meaning of section 530(1) of the Taxes Consolidation Act 1997 or a current tax clearance certificate within the meaning of section 1094(1) or section 1095(1) of the Taxes Consolidation Act 1997,

(iii) may, by notice in writing, withdraw any such certificate already issued, and

(iv) may not issue a floor area compliance certificate in respect of a dwellinghouse or apartment unless any person authorised in writing by that Minister for the purposes of this section is permitted to inspect the dwellinghouse or apartment at all reasonable times on production, if so requested by a person affected, of his or her authorisation.

(2) For the purposes of this section, the Commissioners or any person authorised by the Commissioners on their behalf, may, by notice in writing, request the Minister for the Environment, Heritage and Local Government to provide them, or any person so authorised, with the information, referred to in paragraph (b)(ii) of subsection (1), which was supplied by a person in support of the person's application for a floor area compliance certificate.

(3) Subject to subsection (4), an instrument giving effect to the purchase of a dwellinghouse or apartment on the erection of that dwellinghouse or apartment shall be exempt from all stamp duties.

(4) Subsection (3) shall have effect in relation to an instrument only if the instrument contains a statement, in such form as the Commissioners may specify, certifying that—

(a) the instrument gives effect to the purchase of a dwellinghouse or apartment on the erection of that dwellinghouse or apartment,

(b) until the expiration of the period of 5 years commencing on the date of the execution of the instrument or the subsequent sale of the dwellinghouse or apartment concerned, whichever event first occurs, that dwellinghouse or apartment will be occupied as the only or principal place of residence of the purchaser, or if there be more than one purchaser, of any one or more of the purchasers or of some other person in right of the purchaser or, if there be more than one purchaser, of some other person in right of any one or more of the purchasers and that no person—

(i) other than a person who, while in such occupation, derives rent or payment in the nature of rent in consideration for the provision, on or after 1 April 2004, of furnished residential accommodation in part of the dwellinghouse or apartment concerned, or

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

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

(c) on the date of execution of the instrument there exists a valid floor area compliance certificate in respect of that dwellinghouse or apartment.

(5) In subsection (4)(b), the reference to the subsequent sale does not include a reference to a sale the contract for which, if it were a written conveyance, would not, apart from section 82, be charged with full ad valorem duty or a sale to a company under the control of the vendor or of any person entitled to a beneficial interest in the dwellinghouse or apartment immediately prior to the sale or to a company which would, in relation to a notional gift of shares in that company taken, immediately prior to the sale, by any person so entitled, be under the control of the donee or successor within the meaning of section 27 of the Capital Acquisitions Tax Consolidation Act 2003, irrespective of the shares the subject matter of the notional gift.

(6) Where, in relation to an instrument which is exempted from stamp duty by virtue of subsection (3) and at any time during the period referred to in subsection (4)(b), some person, other than a person referred to in subparagraph (i) or (ii) of subsection (4)(b), derives any rent or payment in the nature of rent for the use of the dwellinghouse or apartment concerned, or of any part of it, then the purchaser, or where there be more than one purchaser, each such purchaser, shall—

(a) jointly and severally become liable to pay to the Commissioners a penalty equal to the amount of the duty which would have been charged in the first instance if the dwellinghouse or apartment had been conveyed or transferred or leased by an instrument to which this section had not applied together with interest on that amount charged at a rate of 0.0322 per cent for each day or part of a day from the date when the rent or payment is first received to the date the penalty is remitted, and

(b) the person who receives the rent or payment shall, within 6 months after the date of the payment, notify the payment to the Commissioners on a form provided, or approved of, by them for the purposes of this section, unless that person is already aware that the Commissioners have already received such a notification from another source.

(7) Where a valid floor area certificate, within the meaning of section 91, has issued in respect of a dwellinghouse or apartment, that certificate shall be deemed to be a valid floor area compliance certificate within the meaning of this section, where an exemption from stamp duty is claimed under this section in respect of the dwellinghouse or apartment concerned.

(8) The furnishing of an incorrect statement within the meaning of subsection (4) shall be deemed to constitute the delivery of an incorrect statement for the purposes of section 1078 of the Taxes Consolidation Act 1997.

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

(2) This section applies as respects instruments executed on or after 1 April 2004.

73 Amendment of section 92 (new dwellinghouses and apartments with no floor area certificate) of Principal Act.

73.—(1) Section 92 of the Principal Act is amended—

(a) in subsection (1)(a)(iii) by substituting “sections 29, 53, 91 and 91A” for “sections 29, 53 and 91”,

(b) by substituting the following for subsection (1)(b)(i):

“(i) the instrument—

(I) is one to which section 29 or 53, applies and that sections 91 and 91A do not apply, or

(II) gives effect to the purchase of a dwellinghouse or apartment on the erection of that dwellinghouse or apartment and that sections 29, 53, 91 and 91A do not apply,

(ia) on the date of execution of the instrument there exists a certificate, signed by such person or class of persons as may be set down in regulations made by the Minister for the Environment, Heritage and Local Government from time to time for the purposes of this section, stating that the total floor area of the dwellinghouse or apartment does or will exceed 125 square metres, and”,

and

“(3) The furnishing of an incorrect statement within the meaning of subsection (1)(b) shall be deemed to constitute the delivery of an incorrect statement for the purposes of section 1078 of the Taxes Consolidation Act 1997.

(4) For the purposes of this section, the Minister for the Environment, Heritage and Local Government may make regulations from time to time—

(a) specifying the manner in which the total floor area of a dwellinghouse or apartment is to be measured, and

(b) specifying the person or class of persons who may sign a certificate referred to in subsection (1)(b)(ia).

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

(2) This section applies as respects instruments executed on or after 1 July 2004 other than instruments executed on or after 1 July 2004 solely in pursuance of binding contracts entered into before 1 April 2004.

74 Intellectual property.

74.—(1) The Principal Act is amended by substituting the following for section 101:

“101.—(1) In this section—

‘intellectual property’ means—

(a) any patent, trade mark, registered design, design right, invention or domain name,

(b) any copyright or related right within the meaning of the Copyright and Related Rights Act 2000,

(c) any supplementary protection certificate provided for under Council Regulation (EEC) No. 1768/92 of 18 June 1992[^1],

(d) any supplementary protection certificate provided for under Regulation (EC) No. 1610/96 of the European Parliament and of the Council of 23 July 1996[^2],

(e) any plant breeders' rights within the meaning of section 4 of the Plant Varieties (Proprietary Rights) Act 1980, as amended by the Plant Varieties (Proprietary Rights) (Amendment) Act 1998,

(f) any application for the grant or registration of anything within paragraph (a), (b), (c), (d) or (e),

(g) any licence or other right in respect of anything within paragraph (a), (b), (c), (d), (e) or (f),

(h) any rights granted under the law of any country, territory, state or area, other than the State, or under any international treaty, convention or agreement to which the State is a party, that correspond to or are similar to those within paragraph (a), (b), (c), (d), (e), (f) or (g),

(i) goodwill to the extent that it is directly attributable to anything within paragraph (a), (b), (c), (d), (e), (f), (g) or (h).

(2) Subject to subsection (3), stamp duty shall not be chargeable under or by reference to any heading in Schedule 1 on an instrument for the sale, transfer or other disposition of intellectual property.

(3) Where stamp duty is chargeable on an instrument under or by reference to any heading in Schedule 1 and part of the property concerned consists of intellectual property—

(a) the consideration in respect of which stamp duty would otherwise be chargeable shall be apportioned, on such basis as is just and reasonable, as between the part of the property which consists of intellectual property and the part which does not, and

(b) the instrument shall be chargeable only in respect of the consideration attributable to such of the property as is not intellectual property.

(4) The amount or value of the consideration attributable to intellectual property, shall be disregarded for the purposes of the statement provided for in paragraphs 7 to 14A 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 any statement referred to in those paragraphs shall be construed accordingly.

(5) Where part of the property referred to in subsection (1) of section 45 consists of intellectual property, that subsection shall have effect as if the words ‘in such manner as is just and reasonable’ were substituted for ‘in such manner, as the parties think fit’.

(6) Where part of the property referred to in subsection (3) of section 45 consists of intellectual property and both or, as the case may be, all the relevant persons are connected with one another, that subsection shall have effect as if the words ‘, the consideration shall be apportioned in such manner as is just and reasonable, so that a distinct consideration for each separate part or parcel is set forth in the conveyance relating to such separate part or parcel, and such conveyance shall be charged with ad valorem duty in respect of such distinct consideration.’ were substituted for ‘for distinct parts of the consideration, then the conveyance of each separate part or parcel shall be charged with ad valorem duty in respect of the distinct part of the consideration specified in the conveyance.’.

(7) For the purposes of subsection (6), a person is a relevant person if that person is a person by or for whom the property is contracted to be purchased and the question of whether persons are connected with one another shall be construed in accordance with section 10 of the Taxes Consolidation Act 1997 and as if the reference to the Capital Gains Tax Acts in the definition of relative in that section was replaced by a reference to the Stamp Duties Consolidation Act 1999.

(8) Where subsection (5) or (6) applies, and the consideration is apportioned in a manner that is not just and reasonable, the conveyance relating to the separate part or parcel of property shall be chargeable with ad valorem duty as if the value of that separate part or parcel of property were substituted for the distinct consideration set forth in that conveyance.”.

(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.

75 Amendment of section 125 (certain premiums of insurance) of Principal Act.

75.—(1) Section 125 of the Principal Act is amended by inserting the following after paragraph (d) of the definition of “excluded amount”:

“(e) a premium received in respect of a contract of insurance, the sole purpose of which is to provide for the making of payments for the reimbursement or discharge in whole or in part of fees or charges in respect of the provision of dental services, other than those involving surgical procedures carried out in a hospital by way of hospital in-patient services within the meaning of section 2(1) of the Health Insurance Act 1994;”.

(2) This section applies as respects contracts of insurance entered into on or after the date of the passing of the Finance Act 2004.

PART 5 Capital Acquisitions Tax

76 Interpretation (Part 5).

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

77 Amendment of section 2 (general interpretation) of Principal Act.

77.—Section 2 of the Principal Act is amended, in subsection (5), by deleting “in lawful wedlock”.

78 Amendment of section 93 (relevant business property) of Principal Act.

78.—(1) Section 93 of the Principal Act is amended by substituting the following for subsection (4):

“(4) Subsection (3) shall not apply to shares in or securities of a company if—

(a) the business of the company consists wholly or mainly in being a holding company of one or more companies whose business does not fall within that subsection, or

(b) the value of those shares or securities, without having regard to the provisions of section 99, is wholly or mainly attributable, directly or indirectly, to businesses that do not fall within that subsection.”.

(2) This section has effect in relation to gifts or inheritances taken on or after the date of the passing of this Act.

79 Amendment of section 106 (arrangements for relief from double taxation) of Principal Act.

79.—Section 106 of the Principal Act is amended by substituting the following for subsection (1):

“(1) If the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to—

(a) affording relief from double taxation in respect of gift tax or inheritance tax payable under the laws of the State and any tax imposed under the laws of that territory which is of a similar character or is chargeable by reference to death or to gifts inter vivos, or

(b) exchanging information for the purposes of the prevention and detection of tax evasion in respect of the taxes specified in paragraph (a),

and that it is expedient that those arrangements should have the force of law, the arrangements shall, notwithstanding anything in any enactment, have the force of law.”.

PART 6 Miscellaneous

80 Interpretation (Part 6).

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

81 Sale of certain objects to Commissioners of Public Works in Ireland.

81.—(1) Section 28(3) of the Finance Act 1931, the proviso to section 55(3) of the Capital Acquisitions Tax Act 1976 and section 77(3) of the Capital Acquisitions Tax Consolidation Act 2003 are amended by inserting “the Commissioners of Public Works in Ireland,” after “national institution,” in each place where it occurs.

(2) Subsection (1) is deemed to have applied as respects sales on or after 1 August 1994.

82 Amendment of section 912A (information for tax authorities in other territories) of Principal Act.

82.—Section 912A (inserted by the Finance Act 2003) of the Principal Act is amended, in subsection (1), in the definition of “foreign tax” by inserting “or section 106 of the Capital Acquisitions Tax Consolidation Act 2003” after “section 826”.

83 Amendment of Part 22 (provisions relating to dealing in or developing land and disposals of development land) of Principal Act.

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

(a) in section 644A(1) in the definition of “residential development land” by substituting “the Local Government (Planning and Development) Acts 1963 to 1999 or the Planning and Development Act 2000,” for “section 26 of the Local Government (Planning and Development) Act, 1963,”, and

(b) in section 648—

(i) by inserting the following after the definition of “the Act of 1963”:

“‘the Act of 2000’ means the Planning and Development Act 2000;”,

(ii) in the definition of “current use value” by substituting “(within the meaning of section 3 of the Act of 1963, or, on or after 21 January 2002, within the meaning of section 3 of the Act of 2000)” for “(within the meaning of section 3 of the Act of 1963)”, and

(iii) by substituting the following for the definition of “development of a minor nature”:

“ ‘development of a minor nature’ means development (not being development by a local authority or a statutory undertaker within the meaning of section 2 of the Act of 1963, or, on or after 11 March 2002, within the meaning of section 2 of the Act of 2000) which, under or by virtue of section 4 of the Act of 1963, or, on or after 11 March 2002, under or by virtue of section 4 of the Act of 2000, is exempted development for the purposes of the Local Government (Planning and Development) Acts 1963 to 1999 or the Act of 2000;”.

(2) (a) Subject to paragraph (b), subsection (1) is deemed to have applied as on and from 11 March 2002.

(b) Subparagraphs (i) and (ii) of paragraph (b) of subsection (1) are deemed to have applied as on and from 21 January 2002.

84 Amendment of section 962 (recovery by sheriff or county registrar) of Principal Act.

84.—Section 962 of the Principal Act is amended by inserting the following after subsection (1):

“(1A) (a) A certificate to be issued by the Collector-General under this section may—

(i) be issued in an electronic or other format, and

(ii) where the certificate is issued in a non-paper format, be reproduced in a paper format by the county registrar or sheriff or by persons authorised by the county registrar or sheriff to do so.

(b) A certificate issued in a non-paper format in accordance with paragraph (a) shall—

(i) constitute a valid certificate for all the purposes of this section,

(ii) be deemed to have been made by the Collector-General, and

(iii) be deemed to have been issued on the date that the Collector-General caused the certificate to issue.

(c) (i) Where a certificate issued by the Collector-General in a non-paper format is reproduced in a paper format in accordance with paragraph (a)(ii) and—

(I) the reproduction contains, or there is appended to it, a note to the effect that it is a copy of a certificate so issued, and

(II) the note contains the signature of the county registrar or sheriff or of the person authorised under paragraph (a)(ii) and the date of such signing, then the copy of the certificate with the note so signed and dated shall, for all purposes, have effect as if it was the certificate itself.

(ii) A signature and date in a note, on a copy of, or appended to, a certificate issued in a non-paper format by the Collector-General, and reproduced in a paper format in accordance with paragraph (a)(ii), that—

(I) in respect of such signature, purports to be that of the county registrar or sheriff or of a person authorised to make a copy, shall be taken until the contrary is shown to be the signature of the county registrar or sheriff or of a person who at the material time was so authorised, and

(II) in respect of such date, shall be taken until the contrary is shown to have been duly dated.

(d) For the purposes of this subsection—

‘electronic’ has the meaning assigned to it by the Electronic Commerce Act 2000 and an ‘electronic certificate’ shall be construed accordingly;

‘issued in a non-paper format’ includes issued by facsimile.”.

85 Amendment of section 1003 (payment of tax by means of donation of heritage items) of Principal Act.

85.—Section 1003 of the Principal Act is, as respects determinations made under subsection (2)(a) of that section on or after the passing of this Act, amended—

(a) in subsection (1)—

(i) by substituting the following for paragraph (i) to (vii) of the definition of “selection committee”:

“(i) an officer of the Minister for Arts, Sport and Tourism, who shall act as Chairperson of the committee,

(ii) the Chief Executive of the Heritage Council,

(iii) the Director of the Arts Council,

(iv) the Director of the National Archives,

(v) the Director of the National Gallery of Ireland,

(vi) the Director of the National Library of Ireland,

(vii) the Director of the National Museum of Ireland, and

(viii) the Director and Chief Executive of the Irish Museum of Modern Art,”,

and

(ii) by inserting, in paragraph (b), the following after subparagraph (ii):

“(iii) For the purposes of making a decision in relation to an application made to it for a determination under subsection (2)(a), the selection committee shall not include the member of that committee who represents the approved body to which it is intended that the gift of the heritage item is to be made where that approved body is so represented but that member may participate in any discussion of the application by that committee prior to the making of the decision.”,

and

(b) in subsection (2)—

(i) by substituting, in paragraph (a), “is, subject to the provisions of paragraphs (aa) and (ab), determined by the selection committee” for “is determined by the selection committee, after consideration of any evidence in relation to the matter which the person submits to the committee and after such consultation (if any) as may seem appropriate to the committee to be necessary with such person or body of persons as in the opinion of the committee may be of assistance to them,”,

(ii) by inserting the following after paragraph (a):

“(aa) In considering an application under paragraph (a), the selection committee shall—

(i) consider such evidence as the person making the application submits to it, and

(ii) seek and consider the opinion in writing in relation to the application of—

(I) the approved body to which it is intended the gift is to be made, and

(II) the Heritage Council, the Arts Council or such other person or body of persons as the committee considers to be appropriate in the circumstances.

(ab) Where an application under paragraph (a) is in respect of a collection of items, the selection committee shall not make a determination under that paragraph in relation to the collection unless, in addition to the making of a determination in relation to the collection as a whole, the selection committee is satisfied that, on the basis of its consideration of the application in accordance with paragraph (aa), it could make a determination in respect of at least one item comprised in the collection, if such were required.”,

and

(iii) in paragraph (c)—

(I) by substituting the following for subparagraph (i):

“(i) is less than,

(I) subject to clause (II), €150,000, and

(II) in the case of at least one item comprised in a collection of items, €50,000, or”,

and

(II) by substituting “€150,000” for “€100,000” in subparagraph (ii).

86 Information in respect of certain tax expenditures.

86.—(1) Chapter 3 of Part 38 of the Principal Act is amended by inserting the following after section 897:

“Returns by employers in relation to pension products.

897A.— (1) In this section— ‘Consolidated Regulations’ means the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001); ‘emoluments’ means emoluments to which Chapter 4 of Part 42 applies; ‘employee’— (a) in relation to an employee pension contribution, has the same meaning as it has for the purposes of Chapter 1 of Part 30, and (b) in relation to a PRSA contribution, has the same meaning as in subsection (1) of section 787A; ‘employee pension contribution’, in relation to a year of assessment and a scheme referred to in either section 774 or 776, means an allowable contribution within the meaning of paragraph (b) of Regulation 41 (inserted by the Income Tax (Employments) Regulations 2002 (S.I. No. 511 of 2002)) of the Consolidated Regulations; ‘employer’— (a) in relation to an employee pension contribution and an employer pension contribution, shall be construed for the purposes of this section in the same way as it is construed for the purposes of Chapter 1 of Part 30, and (b) in relation to a PRSA employee contribution and a PRSA employer contribution, has the same meaning as in section 787A(1); ‘employer pension contribution’, in relation to a year of assessment and an exempt approved scheme (within the meaning of section 774), means any sum paid by an employer in the year of assessment by means of a contribution under the scheme in respect of employees in a trade or undertaking in respect of the profits of which the employer is assessable to tax; ‘PRSA’ shall be construed in accordance with section 787A(1); ‘PRSA contribution’ has the meaning assigned to it by section 787A(1); ‘PRSA employee contribution’, in relation to a year of assessment, means any PRSA contribution made by an employee in the year of assessment which is an allowable contribution within the meaning of paragraph (c) of Regulation 41 (inserted by the Income Tax (Employments) Regulations 2002) of the Consolidated Regulations; ‘PRSA employer contribution’, in relation to a year of assessment, means any PRSA contribution referred to in section 787E(2) made by an employer to a PRSA in the year of assessment; ‘RAC premium’, in relation to a year of assessment, means any qualifying premium (within the meaning of section 784) paid by an individual in the year of assessment which is an allowable contribution within the meaning of paragraph (d) (inserted by the Income Tax (Employments) Regulations 2003 (S.I. No. 613 of 2003)) of Regulation 41 of the Consolidated Regulations. (2) Any person who, in relation to a year of assessment, is required by Regulation 31 of the Consolidated Regulations to send prescribed or approved forms to the Collector-General shall include, in one of those forms, details of the following matters in the manner specified in that form— (a) the respective numbers of employees in respect of whom that person deducted— (i) an employee pension contribution, (ii) a PRSA contribution, (iii) a RAC premium, from emoluments due to the employee in the year of assessment in relation to which the return is being made, (b) the respective numbers of employees in respect of whom that person made— (i) an employer pension contribution, (ii) a PRSA employer contribution, in that year, (c) the respective total amounts of— (i) employee pension contributions, (ii) PRSA contributions, (iii) RAC premiums, deducted by the person from emoluments due to the employees of that person in that year, (d) the respective total amounts of— (i) employer pension contributions, (ii) PRSA employer contributions, made by that person in respect of the employees of that person in that year. (3) Sections 1052 and 1054 shall apply to a failure by a person to make the return required by subsection (2) as they apply to a failure to deliver a return referred to in section 1052.”.

(2) Section 1052(1) of the Principal Act is amended—

(a) by substituting “precept,” for “precept, or” in paragraph (a), and

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

“(aa) has delivered a return in the prescribed form for the purposes of any of the provisions specified in column 1 or 2 of Schedule 29 and has failed to include on the prescribed form the details required by that form in relation to any exemption, allowance, deduction, credit or other relief the person is claiming (in this paragraph referred to as the ‘specified details’) where the specified details are stated on the form to be details to which this paragraph refers; but this paragraph shall not apply unless, after the return has been delivered, it had come to the person's notice or had been brought to the person's attention that specified details had not been included on the form and the person failed to remedy matters without unreasonable delay, or”.

(3) Section 1084 of the Principal Act is amended—

(a) in subsection (1)(b) by inserting the following after subparagraph (ia):

“(ib) where a person delivers a return of income for a chargeable period (within the meaning of section 321(2)) and fails to include on the prescribed form the details required by the form in relation to any exemption, allowance, deduction, credit or other relief the person is claiming (in this subparagraph referred to as the ‘specified details’) and the specified details are stated on the form to be details to which this subparagraph refers, then, without prejudice to any other basis on which a person may be liable to the surcharge referred to in subsection (2), the person shall be deemed to have failed to deliver the return of income on or before the specified return date for the chargeable period and to have delivered the return of income before the expiry of 2 months from that specified return date; but this subparagraph shall not apply unless, after the return has been delivered, it had come to the person's notice or had been brought to the person's attention that specified details had not been included on the form and the person failed to remedy matters without unreasonable delay,”,

and

(b) in subsection (2)(a) by substituting “and, except where the surcharge arises by virtue of subparagraph (ib) of subsection (1)(b), if the tax contained in the assessment is not the amount of tax as so increased,” for “and, if the tax contained in the assessment is not the amount of tax as so increased,”.

(4) Section 1085 of the Principal Act is amended in subsection (1)(b) by substituting “(ia), (ib),” for “(ia),”.

(5) (a) Subsection (1) applies as respects the year of assessment 2005 and subsequent years of assessment.

(b) Subsections (2) to (4) apply as respects any chargeable period (within the meaning of section 321(2) of the Principal Act) commencing on or after 1 January 2004.

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

87.—Chapter 4 of Part 38 of the Principal Act is amended by inserting the following after section 908A:

“Application to High Court seeking order requiring information: associated institutions.

908B.—(1) In this section— ‘the Acts’ has the meaning assigned to it by section 1078(1); ‘associated institution’, in relation to a financial institution, means a person that— (a) is controlled by the financial institution (within the meaning of section 432), and (b) is not resident in the State; ‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section; ‘books, records or other documents’ includes— (a) any records used in the business of an associated institution, or used in the transfer department of an associated institution acting as registrar of securities, whether— (i) comprised in bound volume, loose-leaf binders or other loose-leaf filing system, loose-leaf ledger sheets, pages, folios or cards, or (ii) kept on microfilm, magnetic tape or in any non-legible form (by the use of electronics or otherwise) which is capable of being reproduced in a legible form, (b) every electronic or other automatic means, if any, by which any such thing in non-legible form is so capable of being reproduced, (c) documents in manuscript, documents which are typed, printed, stencilled or created by any other mechanical or partly mechanical process in use from time to time and documents which are produced by any photographic or photostatic process, and (d) correspondence and records of other communications between an associated institution and its customers; ‘financial institution’ means— (a) a person who holds or has held a licence under section 9 of the Central Bank Act 1971, (b) a person referred to in section 7(4) of the Central Bank Act 1971, or (c) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. No. 395 of 1992)) which has been authorised by the Central Bank and Financial Services Authority of Ireland to carry on business of a credit institution in accordance with the provisions of the supervisory enactments (within the meaning of those Regulations); ‘judge’ means a judge of the High Court; ‘liability’ in relation to a person means any liability in relation to tax which the person is or may be, or may have been, subject, or the amount of such liability; ‘tax’ means any tax, duty, levy or charge under the care and management of the Revenue Commissioners; ‘a taxpayer’ means any person including a person whose identity is not known to the authorised officer, and a group or class of persons whose individual identities are not so known. (2) An authorised officer may, subject to this section, make an application to a judge for an order requiring a financial institution to do either or both of the following, namely— (a) to make available for inspection by the authorised officer, such books, records or other documents as are in the power, possession or procurement of an associated institution, in relation to the financial institution, as contain, or may (in the authorised officer's opinion formed on reasonable grounds) contain information relevant to a liability in relation to a taxpayer, or (b) to furnish to the authorised officer such information, explanations and particulars held by, or available from, the financial institution or an associated institution, in relation to the financial institution, as the authorised officer may reasonably require, being information, explanations or particulars that are relevant to any such liability, and which are specified in the application. (3) An authorised officer shall not make an application under subsection (2) without the consent in writing of a Revenue Commissioner, and without being satisfied— (a) that there are reasonable grounds for suspecting that the taxpayer, or where the taxpayer is a group or class of persons, all or any one of those persons, may have failed or may fail to comply with any provision of the Acts, (b) that any such failure is likely to have led or to lead to serious prejudice to the proper assessment or collection of tax (having regard to the amount of a liability in relation to the taxpayer, or where the taxpayer is a group or class of persons, the amount of a liability, in relation to all or any one of them, that arises or might arise from such failure), and (c) that the information— (i) which is likely to be contained in the books, records or other documents to which the application relates, or (ii) which is likely to arise from the information, explanations and particulars to which the application relates, is relevant to the proper assessment or collection of tax. (4) Where the judge, to whom an application is made under subsection (2), is satisfied that there are reasonable grounds for the application being made, then the judge may, subject to such conditions as he or she may consider proper and specify in the order, make an order requiring the financial institution— (a) to make available for inspection by the authorised officer, such books, records or other documents, and (b) to furnish to the authorised officer such information, explanations and particulars, as may be specified in the order. (5) The persons who may be treated as a taxpayer for the purposes of this section include a company which has been dissolved and an individual who has died. (6) Where in compliance with an order made under subsection (4) a financial institution makes available for inspection by an authorised officer, books, records or other documents, then the financial institution shall afford the authorised officer reasonable assistance, including information, explanations and particulars, in relation to the use of all the electronic or other automatic means, if any, by which the books, records or other documents, in so far as they are in a non-legible form, are capable of being reproduced in a legible form, and any data equipment or any associated apparatus or material. (7) Where in compliance with an order made under subsection (4) a financial institution makes books, records or other documents available for inspection by the authorised officer, then the authorised officer may make extracts from or copies of all or any part of the books, records or other documents. (8) Every hearing of an application for an order under this section and of any appeal in connection with that application shall be held in camera.”.

88 Amendment of section 908A (revenue offence: power to obtain information from financial institutions) of Principal Act.

88.—The Principal Act is amended in section 908A by substituting the following for subsection (2)—

“(2) (a) In this subsection ‘documentation’ includes information kept on microfilm, magnetic tape or in any non-legible form (by use of electronics or otherwise) which is capable of being reproduced in a permanent legible form.

(b) If, on application made by an authorised officer, with the consent in writing of a Revenue Commissioner, a judge is satisfied, on information given on oath by the authorised officer, that there are reasonable grounds for suspecting—

(i) that an offence, which would result (or but for its detection would have resulted) in serious prejudice to the proper assessment or collection of tax, is being, has been, or is about to be committed (having regard to the amount of a liability in relation to any person which might be, or might have been, evaded but for the detection of the relevant facts), and

(ii) that there is material in the possession of a financial institution specified in the application which is likely to be of substantial value (whether by itself or together with other material) to the investigation of the relevant facts,

the judge may make an order authorising the authorised officer to inspect and take copies of any entries in the books, records or other documents of the financial institution, and any documentation associated with or relating to an entry in such books, records or other documents, for the purposes of investigation of the relevant facts.”.

89 Miscellaneous technical amendments in relation to tax.

89.—The enactments specified in Schedule 3 are amended to the extent and in the manner specified in that Schedule.

90 Taxation of savings income in the form of interest payments.

90.—(1) Part 38 of the Principal Act is amended by substituting the provisions set out in Schedule 4 for Chapter 3A (inserted by the European Communities (Taxation of Savings Income in the Form of Interest Payments) Regulations 2003 (S.I. No. 717 of 2003)).

(2) The European Communities (Taxation of Savings Income in the Form of Interest Payments) Regulations 2003 are revoked.

91 Deferred surrender to Central Fund.

91.—(1) In this section—

“Appropriation Act” means, in relation to a financial year, the Act—

(a) appropriating to the proper supply services and purposes sums granted by the Central Fund (Permanent Provisions) Act 1965, and making certain provision in relation to financial resolutions passed by Dáil Éireann in that financial year,

(b) providing for matters, if any, to which this section relates;

“capital supply service and purpose” means a supply service voted by Dáil Éireann, the purpose of which is to create an asset intended for use on a continuing basis with an expected life of more than one year;

“first financial year” means any financial year in respect of which there are undischarged appropriations;

“Minister” means the Minister for Finance;

“second financial year”, in relation to the first financial year, means the financial year immediately following the first financial year;

“subhead” means the individual categories of expenditure within a vote under which the expenditure is accounted for in the Appropriation Accounts;

“vote” means a coherent area of Government expenditure which is the responsibility of a single Government Department or office which is in turn accountable to the Dáil for the expenditure shown.

(2) Notwithstanding section 24 of the Exchequer and Audit Departments Act 1866, the Minister may determine that, in respect of the obligation (but for this section) to surrender to the Central Fund undischarged appropriations for the first financial year—

(a) that obligation may, by reference to the capital supply services and purposes included in a vote, be deferred into the second financial year in respect of the sums concerned up to a maximum not greater than 10 per cent of the supply granted for capital supply services and purposes under that vote by Dáil Éireann, and

(b) accordingly, that obligation may, subject to subsection (3), be discharged in the second financial year to the extent that the funds are applied towards making good supply for the capital supply services and purposes approved by Dáil Éireann for the first financial year,

and such determination shall only have effect if the sums concerned and the related Votes and Titles are set out in the Appropriation Act for the first financial year.

(3) Where in accordance with subsection (2) one or more undischarged sums have been determined and are set out in the Appropriation Act then, in respect of any such sum, no sum shall be made available for application towards making good supply in the second financial year until an order is made by the Minister in that year under subsection (4).

(4)(a) The Minister may make an order for the purposes of subsection (3) determining by reference to subheads for the capital supply services and purposes the sums to be made available for application towards making good supply in the second financial year.

(b) An order under this subsection shall be made no later than 31 March in the second financial year.

(d) Where the Minister proposes to make an order, or amend or revoke an order, under this subsection, a draft of the order shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann in the second financial year.

(5) Any sums determined in accordance with subsection (1) and to which an order under subsection (4) relates shall—

(a) be deemed to be appropriations for the second financial year,

(b) to the extent that they are discharged, be deemed from the date of the making of the order to be a first charge on the subheads concerned for the second financial year, and

(c) to the extent that they are not discharged before the end of the second financial year, be surrendered to the Central Fund.

92 Capital Services Redemption Account.

92.—(1) In this section—

“capital services” has the same meaning it has in the principal section;

“fifty-second additional annuity” means the sum charged on the Central Fund under subsection (3);

“principal section” means section 22 of the Finance Act 1950.

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on 31 December 2004, subsection (2) of section 169 of the Finance Act 2003 shall have effect with the substitution of “€0.00” for “€29,663,454”.

(3) A sum of €80,533,677 to redeem borrowings, and interest on such sum, in respect of capital services shall be charged annually on the Central Fund or the growing produce of that Fund in the thirty successive financial years commencing with the financial year ending on 31 December 2004.

(4) The fifty-second additional annuity shall be paid into the Capital Services Redemption Account in such manner and at such times in the relevant financial year as the Minister for Finance may determine.

(5) Any amount of the fifty-second additional annuity, not exceeding €61,900,000 in any financial year, may be applied towards defraying the interest on the public debt.

(6) The balance of the fifty-second additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

93 Care and management of taxes and duties.

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

94 Short title, construction and commencement.

94.—(1) This Act may be cited as the Finance Act 2004.

(2) Part 1 shall be construed together with—

(a) in so far as it relates to income tax, the Income Tax Acts,

(b) in so far as it relates to corporation tax, the Corporation Tax Acts, and

(3) Part 2, in so far as it relates to duties of excise, shall be construed together with the statutes which relate to those duties and to the management of those duties.

(4) Part 3 shall be construed together with the Value-Added Tax Acts 1972 to 2003 and may be cited together with those Acts as the Value-Added Tax Acts 1972 to 2004.

(5) Part 4 shall be construed together with the Stamp Duties Consolidation Act 1999 and the enactments amending or extending that Act.

(6) Part 5 shall be construed together with the Capital Acquisitions Tax Consolidation Act 2003 and the enactments amending or extending that Act.

(7) Part 6 in so far as it relates to—

(a) income tax, shall be construed together with the Income Tax Acts,

(b) corporation tax, shall be construed together with the Corporation Tax Acts,

(d) customs, shall be construed with the Custom Acts,

(e) duties of excise, shall be construed together with the statutes which relate to duties of excise and the management of those duties,

(f) value-added tax, shall be construed together with the Value-Added Tax Acts 1972 to 2004,

(g) stamp duty, shall be construed together with the Stamp Duties Consolidation Act 1999, and the enactments amending or extending that Act,

(h) residential property tax, shall be construed together with Part VI of the Finance Act 1983, and the enactments amending or extending that Part,

(i) gift tax or inheritance tax, shall be construed together with the Capital Acquisitions Tax Act 1976, the Capital Acquisitions Tax Consolidation Act 2003 and the enactments amending or extending either of those Acts.

(8) Except where otherwise expressly provided in Part 1, that Part is deemed to have come into force and takes effect as on and from 1 January 2004.

(9) In relation to Part 3:

(a) section 57 shall be taken to have come into force and shall take effect as on and from 4 December 2003;

(b) sections 59 and 61 shall be taken to have come into force and shall take effect as on and from 1 January 2004;

(d) paragraph (a) of section 55, sections 56, 58, section 60 (in so far as it relates to the insertion of subparagraph (vb) into section 12 of the Value-Added Tax Act 1972), paragraphs (b) and (c) of section 64 and paragraph (a) of section 65 come into force and take effect as on and from 1 January 2005;

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

(10) Except where otherwise expressly provided for, where a provision of this Act is to come into operation on the making of an order by the Minister for Finance, that provision shall come into operation on such day or days as the Minister for Finance shall 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.

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

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

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

SCHEDULE 1 Exemption from Tax for certain Interest and Royalties Payments

Amendment of Part 8 (Annual Payments, Charges and Interest) of the Taxes Consolidation Act 1997

“CHAPTER 6

Implementation of Council Directive 2003/49/EC of 3 June 2003 on a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States.

‘arrangements’ means arrangements having the force of law by virtue of section 826(1)(a);

‘bilateral agreement’ means any arrangements, protocol or other agreement between the Government and the government of another state;

‘permanent establishment’ means a fixed place of business through which the business of a company of a Member State is wholly or partly carried on which place of business is situated in a territory other than that Member State;

‘company’ means a company of a Member State;

‘company of a Member State’ has the meaning assigned to it by Article 3(a) of the Directive;

‘the Directive’ means Council Directive 2003/49/EC of 3 June 2003[^1];

‘interest’ means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures but does not include penalty charges for late payment;

‘Member State’ means a Member State of the European Communities;

‘royalties’ means payments of any kind as consideration for

(a) the use of, or the right to use—

(i) any copyright of literary, artistic or scientific work, including cinematograph films and software,

(ii) any patent, trade mark, design or model, plan, secret formula or process,

(b) information concerning industrial, commercial or scientific experience;

‘tax’, in relation to a Member State other than the State, means any tax imposed in that Member State which is specified in Article 3(a)(iii) of the Directive.

(2) For the purposes of this Chapter—

(a) a company shall be treated as an ‘associated company’ of another company during an uninterrupted period of at least 2 years throughout which—

(i) one of them directly controls not less than 25 per cent of the voting power of the other company, or

(ii) in respect of those companies, a third company directly controls not less than 25 per cent of the voting power of each of them,

(b) a permanent establishment of a company in a Member State shall be treated as being the beneficial owner of interest or royalties if—

(i) the debt-claim, right or asset in respect of which the interest arises, or as the case may be the royalties arise, consists of property or rights used by, or held by or for, the permanent establishment, and

(ii) the interest or royalties are taken into account in computing income of the permanent establishment which is subject to one of the taxes specified in Article 1.5(b) or Article 3(a)(iii) of the Directive,

(c) a word or expression used in this Chapter and in the Directive has, unless the contrary intention appears, the same meaning in this Chapter as in the Directive.

(a) by either—

(i) a company resident in the State, or

(ii) a company not so resident which carries on a trade in the State through a permanent establishment if, in relation to the trade the interest gives, or as the case may be the royalties give, rise to a deduction under section 81 or 97 or relief under Part 8,

(b) to or for the benefit of—

(i) where subparagraph (ii) does not apply, a company which—

(I) is the beneficial owner of the interest, or as the case may be the royalties, and

(II) is, by virtue of the law of a Member State other than the State, resident for the purposes of tax in such a Member State,

(ii) a permanent establishment—

(I) which is situated in a Member State (in this subparagraph referred to as the ‘first Member State’) other than the State,

(II) which is treated as the beneficial owner of the interest, or as the case may be the royalties, and

(III) through which a company, which is (by virtue of the law of a Member State other than the State) resident for the purposes of tax in such a Member State, carries on a business in the first Member State,

if the company referred to in paragraph (a) is an associated company of the company referred to in paragraph (b).

(2) This Chapter shall not apply to—

(a) interest or royalties paid—

(i) to a company where the debt-claim, right or asset in respect of which the payment is made consists of property or rights used by, or held by or for, a permanent establishment of the company through which the company carries on a trade—

(I) in the State, or

(II) in a territory which is not a Member State,

(ii) by a company for the purposes of a business carried on by it through a permanent establishment in a territory which is not a Member State,

(b) interest on a debt-claim in respect of which there is no provision for repayment of the principal amount or where the repayment is due more than 50 years after the creation of the debt, or

(c) so much of any royalties paid as exceeds the amount which would have been agreed by the payer, and the beneficial owner, of the royalties if they were independent persons acting at arms' length.

(2) A company which, by virtue of the law of a Member State other than the State, is resident for the purposes of tax in that Member State, shall not be chargeable to corporation tax or income tax in respect of interest or royalties to which this Chapter applies except where the interest is, or as the case may be the royalties are, paid to the company in connection with a trade which is carried on in the State by that company through a permanent establishment.

(a) any withholding tax charged on the interest or royalties by Greece or Portugal, and

(b) any withholding tax charged on the royalties by Spain,

pursuant to the derogations provided for in Article 6 of the Directive against corporation tax in respect of the interest or royalties to the extent that credit for such withholding tax would not otherwise be allowed.

(2) Where by virtue of paragraph (a) a company is to be allowed credit for tax payable under the laws of a Member State other than the State, Schedule 24 shall apply for the purposes of that paragraph as if that paragraph were arrangements providing that the tax so payable shall be allowed as a credit against tax payable in the State.

(3) This section applies without prejudice to a provision of a bilateral agreement.

(2) Where a company which—

(a) is entitled to receive a payment of interest or royalties from any person, and

(b) had received from that person a payment of interest or royalties which was exempt from tax in accordance with the Directive,

ceases to fulfil the requirements specified in the Directive for exemption to apply, the company shall without delay inform that person that it has so ceased.”.

SCHEDULE 2 Rates of Excise Duty on Tobacco Products

Description of Product	Rate of Duty
Cigarettes.........	€133.39 per thousand together with an amount equal to 18.32 per cent of the price at which the cigarettes are sold by retail
Cigars............	€196.409 per kilogram
Fine-cut tobacco for the rolling of cigarettes.........	€165.740 per kilogram
Other smoking tobacco...	€136.261 per kilogram

SCHEDULE 3 Miscellaneous Technical Amendments in Relation to Tax

The Taxes Consolidation Act 1997 is amended in accordance with the following provisions:

(a) in section 23A(1)(a) by substituting “826(1)(a)” for “section 826” in the definition of “arrangements”,

(b) in section 29A(4) by substituting “section 826(1)(a)” for “section 826”,

(d) in section 130(3)(d) by substituting “section 826(1)(a)” for “section 826” in the definition of “relevant Member State”,

(e) in section 153(1) by substituting “section 826(1)(a)” for “section 826” in the definition of “relevant territory”,

(f) in section 172A (1)(a) by substituting “section 826(1)(a)” for “section 826” in the definition of “relevant territory”,

(g) in section 198 (1)(a) by substituting “section 826(1)(a)” for “section 826” in the definition of “arrangements”,

(h) in section 222(1)(b) by substituting “section 826(1)(a)” for “section 826” in both places where it occurs,

(i) in section 246(1) by substituting “section 826(1)(a)” for “section 826” in the definition of “relevant territory”,

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