Finance Act 2005

“81B.—(1)(a) In this section—

‘consolidation certificate’, in relation to an exchange of relevant land, means a certificate, issued for the purposes of this section by Teagasc to each farmer concerned in the exchange of relevant land, which identifies the lands concerned and the owners of such lands, and certifies that Teagasc is satisfied, on the basis of information available to Teagasc at the time of so certifying, that the exchange of relevant land complies, or will comply, with the conditions of consolidation set down in guidelines;

‘exchange of relevant land’ means an exchange under which an interest in relevant land is conveyed or transferred by a farmer to another farmer in exchange for receiving, by way of conveyance or transfer, an interest in relevant land from that other farmer; and includes an exchange where the relevant land is conveyed or transferred by or to joint owners where not all the joint owners are farmers;

‘farmer’ means a person who spends not less than 50 per cent of that person's normal working time farming;

‘farming’ includes the occupation of woodlands on a commercial basis;

‘guidelines’ and ‘conditions of consolidation’ have, respectively, the meaning assigned to them by paragraph (b)(i);

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

‘PPS number’ means a personal public service number within the meaning of section 223 (as amended by section 12(1)(a) of the Social Welfare (Miscellaneous Provisions) Act 2002 (No. 8 of 2002)) of the Social Welfare (Consolidation) Act 1993;

‘relevant land’ means agricultural land, including lands suitable for occupation as woodlands on a commercial basis, in the State and such farm buildings together with the lands occupied with such farm buildings as are of a character appropriate to the relevant land but not including farm houses or mansion houses or the lands occupied with such farm houses and mansion houses unless such farm houses or mansion houses are derelict and unfit for human habitation;

‘valid consolidation certificate’, on any day, means a consolidation certificate which, as at that day, has not been withdrawn and which was issued within the period of one year ending on that day.

• (b) For the purposes of this section—

  • (i) the Minister for Agriculture and Food with the consent of the Minister for Finance may make and publish guidelines, from time to time, setting out—

    • (I) how an application for a consolidation certificate, in relation to an exchange of relevant land, is to be made,

    • (II) the documentation required to accompany such an application,

    • (III) the conditions of consolidation, and

    • (IV) such other information as may be required in relation to such application,

  • (ii) where an application is made in that regard, Teagasc shall issue a consolidation certificate in respect of an exchange of relevant land where they are satisfied, on the basis of information available to Teagasc at that time, that an exchange of relevant land complies, or will comply, with the conditions of consolidation, and

  • (iii) Teagasc may, by notice in writing, withdraw any consolidation certificate already issued.

• (2) This section applies to any instrument effecting an exchange of relevant land where—

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

  • (b) a consolidation certificate, in relation to the exchange of relevant land, which is a valid consolidation certificate on the date of execution of the instrument, is furnished to the Commissioners when the instrument is presented for stamping,

  • (c) a declaration of a kind referred to in subsection (3), is furnished to the Commissioners by each farmer who is a party to the instrument, when the instrument is presented for stamping,

  • (d) a declaration made in writing by each person, who is a party to the instrument, is furnished to the Commissioners, in such form as the Commissioners may specify, when the instrument is presented for stamping, declaring that it is the intention of each such person—

    • (i) to retain ownership of his or her interest in the relevant land conveyed or transferred to that person by such instrument, and

    • (ii) that the relevant land will be used for farming,

    for a period of not less than 5 years from the date of execution of the instrument, and

  • (e) the PPS number of each person who is a party to the instrument is furnished to the Commissioners when the instrument is presented for stamping.

• (3) The declaration referred to in subsection (2)(c) is a declaration made in writing by a farmer, in such form as the Commissioners may specify, which—

  • (a) is signed by the farmer, and

  • (b) declares that—

    • (i) the farmer will remain a farmer, and

    • (ii) the farmer will farm the relevant land, conveyed or transferred to the farmer by the instrument,

    for a period of not less than 5 years from the date of execution of the instrument.

• (4) Notwithstanding section 37—

  • (a) stamp duty shall not be chargeable on an instrument giving effect to an exchange of relevant land, to which this section applies, where the relevant lands exchanged are of equal value, and

  • (b) where the relevant lands exchanged are not of equal value, subject to subsection (5), stamp duty shall only be chargeable on the principal or only instrument giving effect to the exchange of relevant land as if it were a conveyance or transfer on sale of the relevant land which is of the greater value which was made—

    • (i) in consideration of a sum equal to the difference between the value of the relevant lands exchanged,

    • (ii) to the person or persons to whom the relevant land which is of the greater value is conveyed or transferred.

• (5) Where relevant lands exchanged are not of equal value, the consideration paid or agreed to be paid for equality shall consist only of a payment in cash.

• (6) Where subsection (4)(b) applies and there are several instruments for completing a title to relevant land the subject of an exchange of relevant land to which this section applies, the principal instrument is to be ascertained and the other instruments shall not be chargeable to stamp duty.

• (7) Subsection (4) shall not apply to an instrument unless it has, in accordance with section 20, been stamped with a particular stamp denoting that it is duly stamped or, as the case may be, that it is not chargeable with any duty.

• (8) For the purposes of subsection (7), where there are several instruments for completing a title to relevant land, the subject of an exchange of relevant land to which this section applies, all instruments shall, for the purposes of section 20, be presented to the Commissioners, at the same time.

• (9)

  • (a) Subject to paragraph (b), where any person to whom relevant land was conveyed or transferred by any instrument in respect of which relief from duty under this section was allowed, disposes of such relevant land, or part of such relevant land, within a period of 5 years from the date of execution of the instrument, 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 of an amount equal to the amount of the difference between—

    • (i) the duty that would have been charged by virtue of section 37 on the value of such relevant land (being all the relevant land, the subject of the exchange of relevant land, conveyed or transferred to that person), if such relevant land had been conveyed or transferred to that person or, where there is more than one such person, each such person, by an instrument to which this section had not applied, and

    • (ii) the duty, if any, which was charged by virtue of this section on the conveyance or transfer of such relevant land,

    together with interest charged on that amount, calculated in accordance with section 159D, from the date of disposal of the relevant land or, as the case may be, a part thereof, to the date the penalty is remitted.

  • (b) Paragraph (a) shall not apply to a disposal of relevant land—

    • (i) which is being compulsorily acquired, or

    • (ii) which is a disposal of relevant land under an exchange of relevant land effected by an instrument to which subsection (2) applies.

  • (c) Where any claim for relief from duty under this section has been allowed and it is subsequently found that a declaration referred to in paragraph (c) or (d) of subsection (2)—

    • (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 knowing same to be untrue or in reckless disregard as to whether it was true or not,

    then the person or persons who made such a declaration, jointly and severally, shall become liable to pay to the Commissioners a penalty of an amount equal to the amount of the difference between—

    - (I) 125 per cent of the duty which would have been charged on the instrument or, as the case may be, the instruments, effecting the exchange of relevant land by virtue of section 37 on the value of such relevant land conveyed or transferred to such person or persons, had all the facts been truthfully declared, and
    
    - (II) the amount of duty which was charged, if any,
    
      together with interest charged on that amount, calculated in accordance with section 159D, from the date when the instrument was executed to the date the penalty is remitted.
    

  • (d) Where a consolidation certificate, purporting to be valid on the date of execution of an instrument effecting an exchange of relevant land, is furnished to the Commissioners when the instrument is presented for stamping and subsection (2) applied to the instrument and it subsequently transpires that the consolidation certificate was not a valid consolidation certificate on that date, the parties to the instrument, jointly and severally, shall become liable to pay to the Commissioners a penalty of an amount equal to the amount of the difference between—

    • (i) 125 per cent of the duty which would have been charged on the instrument or, as the case may be, the instruments, effecting the exchange of relevant land by virtue of section 37 on the value of such relevant land conveyed or transferred to such person or persons, had subsection (2) not applied to the instrument, and

    • (ii) the amount of duty which was charged, if any,

    together with interest charged on that amount, calculated in accordance with section 159D, from the date when the instrument was executed to the date the penalty is remitted.

• (10) Notwithstanding subsection (9)—

  • (a) where relief under this section was allowed in respect of any instrument, a disposal by a farmer or other joint owner of part of the relevant land to a spouse for the purpose of creating a joint tenancy in the relevant land, or where the instrument conveyed or transferred the relevant land to joint owners, a disposal by one joint owner, to another joint owner (being a farmer) of any part of the relevant land, shall not be regarded as a disposal to which subsection (9) applies, but on such disposal, such part of the relevant land shall be treated for the purposes of subsection (9) 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,

  • (b) a person shall not be liable, in respect of the same matter, to more than one penalty under paragraph (a), (c) or (d) of subsection (9),

  • (c) a person shall not be liable, in respect of the same matter, to a penalty under paragraph (a) of subsection (9), if and to the extent that such person has paid a penalty under paragraph (c) or (d) of subsection (9),

  • (d) a person shall not be liable, in respect of the same matter, to a penalty under paragraph (c) of subsection (9), if and to the extent that such person has paid a penalty under paragraph (a) or (d) of subsection (9), and

  • (e) a person shall not be liable, in respect of the same matter, to a penalty under paragraph (d) of subsection (9), if and to the extent that such person has paid a penalty under paragraph (a) or (c) of subsection (9).

• (11) This section shall not apply to any instrument effecting an exchange of relevant land where the party or, as the case may be, any of the parties to such instrument, is a company.

• (12) This section shall apply as respects instruments executed on or after 1 July 2005 and on or before 30 June 2007.”.

122 Amendment of section 87 (stock borrowing) of Principal Act.

122.—(1) Section 87 of the Principal Act is amended—

• (a) in subsection (1) in paragraph (b) of the definition of “stock borrowing” by substituting “12 months” for “6 months”, and

• (b) in subsection (3) by substituting “12 months” for “6 months” in both places where it occurs.

• (2) This section applies to stock borrowing (for the purpose of section 87 of the Principal Act) transactions entered into on or after the date of the passing of this Act.

123 Amendment of section 87A (stock repo) of Principal Act.

123.—(1) Section 87A of the Principal Act is amended—

• (a) in subsection (1)—

• (i) in the definition of “repurchase agreement” by substituting “12 months” for “6 months”, and

• (ii) in the definition of “stock return” by substituting “12 month time limit” for “6 month time limit”,

• (b) in subsection (3) by substituting “12 months” for “6 months”, and

• (c) in subsection (4)(a) by substituting “12 months” for “6 months”.

• (2) This section applies to stock transfers (for the purposes of section 87A of the Principal Act) executed on or after the date of the passing of this Act.

124 Amendment of section 88 (certain stocks and marketable securities) of Principal Act.

124.—(1) Section 88 of the Principal Act is amended—

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

• “(i) units in an investment undertaking within the meaning of section 739B of the Taxes Consolidation Act 1997 or units in a common contractual fund within the meaning of section 739I (inserted by the Finance Act 2005) of that Act,”,

and

• (b) in subsection (2)(b) by substituting “an investment undertaking within the meaning of section 739B of the Taxes Consolidation Act 1997” for “a collective investment undertaking within the meaning of section 734 of the Taxes Consolidation Act, 1997”.

• (2) This section applies as respects conveyances or transfers effected on or after the date of the passing of this Act.

125 Amendment of section 90 (certain financial services instruments) of Principal Act.

125.—(1) Section 90 of the Principal Act is amended in subsection (3)(b) by substituting “an investment undertaking within the meaning of section 739B of the Taxes Consolidation Act 1997” for “a collective investment undertaking within the meaning of section 734 of the Taxes Consolidation Act, 1997”.

• (2) This section applies as respects instruments executed on or after the date of the passing of this Act.

126 Amendment of section 92B (residential property first time purchaser relief) of Principal Act.

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

• (a) by substituting the following for subsection (2):

• “(2) The amount of stamp duty chargeable under or by reference to paragraphs (2) to (6) 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’ or clauses (ii) to (vi) of paragraph (3)(a) of the Heading ‘LEASE’, as the case may be, in Schedule 1 on any instrument to which this section applies shall be reduced, where paragraphs (2) to (4) of the first-mentioned Heading or clauses (ii) to (iv) of the said paragraph (3)(a) apply, to nil, and where—

  • (a) paragraph (5) of the first-mentioned Heading or clause (v) of the said paragraph (3)(a) applies, to an amount equal to one half,

  • (b) paragraph (6) of the first-mentioned Heading or clause (vi) of the said paragraph (3)(a) applies, to an amount equal to twelvefifteenths,

  of the amount which would otherwise have been chargeable but where the calculation results in an amount which is not a multiple of €1 the amount so calculated shall be rounded down to the nearest €.”,

• (b) in subsection (3)(b) by substituting “any instrument, to which neither section 92 nor subsection (3A) applies, which contains a statement, in such form as the Commissioners may specify, certifying that subsection (3A) does not apply,” for “any instrument, other than one to which section 92 applies, which contains a statement, in such form as the Commissioners may specify, certifying”, and

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

• “(3A) This subsection applies to an instrument—

  • (a) which gives effect to the purchase of a dwellinghouse or apartment on the erection of the dwellinghouse or apartment, or

  • (b) to which section 29 or 53 applies,

  where the total floor area of that 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,
  
    as measured in the manner specified in regulations made by the Minister for the Environment, Heritage and Local Government for the purposes of section 91A.”.
  

• (2)
• (a) Paragraph (a) of subsection (1) applies as respects instruments executed on or after 2 December 2004.

• (b) Paragraphs (b) and (c) of subsection (1) apply as respects instruments executed on or after 1 March 2005.

127 Amendment of section 117 (statement to be charged with stamp duty) of Principal Act.

127.—(1) Section 117 of the Principal Act is amended—

• (a) in subsection (1)—

• (i) by substituting “0.5 per cent” for “1 per cent”, and

• (ii) 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 €”,

and

• (b) in subsection (2) by deleting paragraph (a).

• (2)
• (a) Paragraph (a)(i) of subsection (1) applies as respects transactions effected on or after 2 December 2004, and

• (b) Paragraphs (a)(ii) and (b) of subsection (1) apply as respects transactions effected on or after 3 February 2005.

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

128.—(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 “accounting period”:

“ ‘accounting period’ has the same meaning as it has for the purposes of section 27 of the Taxes Consolidation Act 1997, but where such accounting period commences after 31 December 2004 and ends after 31 December 2005, it shall be deemed, for the purposes of this section, to be an accounting period ending on 31 December 2005;”,

• (II) by substituting the following for the definition of “bank”:

“ ‘bank’ includes—

• (a) a person who holds a licence granted under section 9 of the Central Bank Act 1971, and

• (b) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. No. 395 of 1992)) and a financial institution within that meaning;”,

and

• (III) by substituting the following for the definition of “due date”:

“ ‘due date’, in relation to an accounting period, means—

• (a) in the case of any year prior to the year 2005, the date of the end of the accounting period ending in that year, and

• (b) in the case of the year 2005, the date of the end of the accounting period or each of them, if there is more than one, ending in that year;”,

• (ii) by substituting the following for subsection (2):

• “(2) A promoter shall, in each year, within one month of the due date, in relation to each accounting period, deliver to the Commissioners a statement in writing showing the number of cash cards and combined cards issued at any time by the promoter and which are valid at any time during the accounting period.”,

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

• “(4) Subject to subsection (4A), there shall be charged on every statement delivered in pursuance of subsection (2)—

  • (a) a stamp duty at the rate of €10 or, where the statement is in respect of an accounting period deemed under this section to end on 31 December 2005, a rate calculated by multiplying one-twelfth of €10 by the number of months in the accounting period, in respect of each cash card, and

  • (b) a stamp duty at the rate of €20 or, where the statement is in respect of an accounting period deemed under this section to end on 31 December 2005, a rate calculated by multiplying one-twelfth of €20 by the number of months in the accounting period, in respect of each combined card,

  included in the number of cash cards and combined cards shown in the statement.

• (4A) Notwithstanding subsection (4)—

  • (a) in a case to which subsection (4)(a) applies, the rate calculated by multiplying one-twelfth of €10 by the number of months in an accounting period shall be—

    • (i) €2.50, where there are 3 months in the accounting period, and

    • (ii) €7.50, where there are 9 months in the accounting period,

    and

  • (b) in a case to which subsection (4)(b) applies, the rate calculated by multiplying one-twelfth of €20 by the number of months in an accounting period shall be—

    • (i) €5, where there are 3 months in the accounting period, and

    • (ii) €15, where there are 9 months in the accounting period.”,

and

• (iv) by inserting the following subsection after subsection (11):

• “(12) This section does not apply to any statement that falls to be delivered by a promoter in respect of a due date falling after 31 December 2005.”.

• (b) in section 123A—

• (i) in subsection (1)—

• (I) by substituting the following for the definition of “accounting period”:

“ ‘accounting period’ has the same meaning as it has for the purposes of section 27 of the Taxes Consolidation Act 1997, but where such accounting period commences after 31 December 2004 and ends after 31 December 2005, it shall be deemed, for the purposes of this section, to be an accounting period ending on 31 December 2005;”,

• (II) by substituting the following for the definition of “bank”:

“ ‘bank’ includes—

• (a) a person who holds a licence granted under section 9 of the Central Bank Act 1971, and

• (b) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. No. 395 of 1992)) and a financial institution within that meaning;”,

and

• (III) by substituting the following for the definition of “due date”:

“ ‘due date’, in relation to an accounting period, 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,

• (b) in the case of the year 2003 and 2004, the date of the end of the accounting period ending in that year, and

• (c) in the case of the year 2005, the date of the end of the accounting period, or each of them if there is more than one, ending in that year;”,

• (ii) by substituting the following for subsection (2):

• “(2) A promoter shall, within 2 months of the due date, in relation to each accounting period falling in the year 2002 and, within one month of the due date falling in each of the years 2003, 2004 and 2005, 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 2005, at any time during the accounting period.”,

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

• “(4) Subject to subsection (4A), there shall be charged on every statement delivered in pursuance of subsection (2) a stamp duty at the rate of €10 or, where the statement is in respect of an accounting period deemed under this section to end on 31 December 2005, a rate calculated by multiplying one-twelfth of €10 by the number of months in the accounting period, in respect of each debit card included in the number of cards shown in the statement.

• (4A) Notwithstanding subsection (4), the rate calculated by multiplying one-twelfth of €10 by the number of months in an accounting period shall be—

  • (a) €2.50, where there are 3 months in the accounting period, and

  • (b) €7.50, where there are 9 months in the accounting period.”,

and

• (iv) by inserting the following subsection after subsection (11):

• “(12) This section does not apply to any statement that falls to be delivered by a promoter in respect of a due date falling after 31 December 2005.”.

• (c) by inserting the following section after section 123A:

“Cash, combined and debit cards.

123B.—(1) In this section— ‘bank’ includes— (a) a person who holds a licence granted under section 9 of the Central Bank Act 1971, and (b) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. No. 395 of 1992)) and a financial institution within that meaning; ‘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— (a) amounts of cash obtained by a person by means of a cash card are charged, (b) amounts in respect of goods, services or cash obtained by a person by means of a combined card are charged, or (c) amounts in respect of goods, services or cash obtained by a person by means of a debit 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; ‘combined card’ means a cash card which also contains the functions of a debit card; ‘debit 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 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; ‘promoter’ means a bank or a building society. (2) A promoter shall, within one month of the end of each year, commencing with the year 2006, deliver to the Commissioners a statement in writing showing the number of cash cards, combined cards and debit cards issued at any time by the promoter and which are valid on 31 December in that year. (3) Notwithstanding subsection (2)— (a) if the cash card, combined card or debit card is not used at any time during a year, or (b) if the cash card, combined card or 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 during that year, then it shall not be included in the statement relating to that year. (4) There shall be charged on every statement delivered in pursuance of subsection (2) a stamp duty— (a) at the rate of €10 in respect of each cash card and each debit card, and (b) at the rate of €20 in respect of each combined 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 pay any duty required to be paid in accordance with this section, the promoter shall be liable to pay, by means of a penalty, in addition to the duty, interest on that duty, calculated in accordance with section 159D, for the period commencing on the date the duty was so required to be paid and ending on the date the duty was paid and also, by means of a further penalty, a sum of €380 for each day in that period 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 a cash card, combined card or 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.”,

and

• (d) in section 124—

• (i) in subsection (1)—

• (I) in paragraph (a)—

• (A) by inserting the following definitions after the definition of “account”:

“ ‘account holder’ means the person in whose name an account is maintained by a bank;

‘bank’ includes—

• (i) a person who holds a licence granted under section 9 of the Central Bank Act 1971, and

• (ii) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. No. 395 of 1992)) and a financial institution within that meaning;”,

• (B) in the definition of “credit card” by substituting “to the account;” for “to the account.”, and

• (C) by inserting the following definitions after the definition of “credit card”:

“ ‘letter of closure’, in relation to an account, means a letter, in such form as the Commissioners may specify, issued during a relevant period by a bank to an account holder in respect of an account which has been closed during the relevant period confirming that the account holder has, during the relevant period, accounted for the amount of stamp duty—

• (i) which the bank is required to pay in respect of the account for the relevant period, or

• (ii) which another bank (not being a branch of the same bank) is required to pay for the relevant period in respect of another account which has been closed during the relevant period;

‘relevant period’ means a 12 month period ending on 1 April in any year commencing with the 12 month period ending on 1 April 2006;

‘replacement account’ means an account that is opened and maintained by a bank in the name of an account holder during a relevant period—

• (i) where an account in the name of the account holder was, during the relevant period, previously closed by the bank, or

• (ii) where the account holder has furnished to the bank during the relevant period a letter of closure issued by another bank (not being a branch of the same bank) in relation to an account in the name of the account holder which was closed during the relevant period.”,

• (II) by substituting the following for paragraph (b):

• “(b) A bank shall, within 3 months of the end of each relevant period, deliver to the Commissioners a statement in writing showing in respect of accounts maintained by the bank at any time during the relevant period—

  • (i) the number of accounts that are replacement accounts, and

  • (ii) the number of accounts that are not replacement accounts.”,

and

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

• “(d) Notwithstanding paragraph (c), where a bank maintains a replacement account at any time during a relevant period, the bank shall be exempt from stamp duty on that replacement account.

• (e) A bank shall not issue a letter of closure during a relevant period in respect of an account that has been closed during the relevant period where—

  • (i) the account holder has not accounted for the amount of stamp duty which the bank is required to pay in respect of the account for the relevant period, or

  • (ii) the bank is not in possession of a letter of closure, in respect of another account closed during the relevant period, received from the account holder during the relevant period.

• (f) Where a bank treats an account as a replacement account by virtue of the account holder furnishing a letter of closure, the bank shall not, by virtue of that letter, treat any other account as a replacement account.

• (g) A bank shall not issue more than one original letter of closure in respect of an account and may only issue a duplicate letter of closure to an account holder to whom an original letter of closure issued where the bank is satisfied that the original letter of closure has been lost or destroyed and where such letter states that it is a duplicate of an original letter of closure.”,

• (ii) in subsection (2)—

• (I) in paragraph (a)—

• (A) by inserting the following definition after the definition of “account”:

“ ‘account holder’ means the person in whose name an account is maintained by a promoter;”,

• (B) by inserting the following definition after the definition of “charge card”:

“ ‘charge card’, in relation to an account, means a charge card used to obtain goods, services or cash, amounts in respect of which are charged to the account;”,

and

• (C) by inserting the following definitions after the definition of “company charge card”:

“ ‘letter of closure’, in relation to an account, means a letter, in such form as the Commissioners may specify, issued during a relevant period by a promoter to an account holder in respect of an account which has been closed during the relevant period—

• (i) confirming that the account holder has, during the relevant period, accounted for the amount of stamp duty which the promoter is required to pay in respect of charge cards, in relation to the account, for the relevant period and stating the number of cards in respect of which the promoter is so liable to pay, and

• (ii) confirming, where it is the case, that the account holder has, during the relevant period, accounted for the amount of stamp duty which another promoter (not being a branch of the same promoter) is required to pay for the relevant period in respect of charge cards in relation to another account which has been closed during the relevant period and stating the number of cards in respect of which that other promoter is so liable to pay;

‘relevant period’ means a 12 month period ending on 1 April in any year commencing with the 12 month period ending on 1 April 2006;

‘replacement account’ means an account that is opened and maintained by a promoter in the name of an account holder during a relevant period—

• (i) where an account (in this section referred to as an ‘original account’) in the name of the account holder was, in the relevant period, previously closed by the promoter, or

• (ii) where the account holder has furnished, during the relevant period, a letter of closure issued by another promoter (not being a branch of the same promoter) in relation to an account in the name of the account holder which was closed during the relevant period;

‘replacement card’ means a charge card in relation to a replacement account.”,

• (II) by substituting the following for paragraph (b):

• “(b) A promoter shall, within 3 months of the end of each relevant period, deliver to the Commissioners a statement in writing showing in respect of the charge cards issued or renewed by the promoter and expressed to be valid at any time during the relevant period—

  • (i) the number of cards that are replacement cards, and

  • (ii) the number of cards that are not replacement cards.”,

and

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

• “(d) Notwithstanding paragraph (c), stamp duty shall only be chargeable on replacement cards in relation to a replacement account maintained by a promoter at any time during a relevant period—

• (i) where the replacement account replaces an account maintained by the same promoter, to the extent that the number of such charge cards, in relation to the account, exceeds the number of charge cards in relation to the original account, or

• (ii) where the replacement account replaces an account maintained by another promoter, to the extent that the number of such charge cards, in relation to the account, exceeds the aggregate number of charge cards stated in the letter of closure in relation to that other account.

• (e) A promoter shall not issue a letter of closure during a relevant period in respect of an account that has been closed during the relevant period where the account holder has not accounted for the amount of stamp duty which the promoter is required to pay in respect of the charge cards to which the account relates, for the relevant period.

• (f) Where a promoter treats an account as a replacement account by virtue of the account holder furnishing a letter of closure, the promoter shall not, by virtue of that letter, treat any other account as a replacement account.

• (g) A promoter shall not issue more than one original letter of closure in respect of an account and may only issue a duplicate letter of closure to an account holder to whom the original letter of closure issued where the promoter is satisfied that the original letter of closure has been lost or destroyed and where such duplicate letter states that it is a duplicate of an original letter of closure.”,

• (iii) in subsection (5), in subparagraphs (i) and (ii) of paragraph (a) by substituting “1 April” for “the 1st day of April”, and

• (iv) by inserting the following subsections after subsection (5):

• “(5A) A bank or a promoter is required to retain any original letter of closure or any duplicate of such letter received from an account holder for a period of 4 years from the date of receipt of such letter.

• (5B) A letter of closure, in relation to an account, shall only be issued to one person in whose name the account is maintained notwithstanding that there is more than one such person.”.

• (2) Paragraph (d) of subsection (1) has effect as respects accounts maintained by a bank or, as the case may be, a promoter after 1 April 2005.

129 Amendment of section 159C (time limits for making enquiries, etc. and assessments by the Commissioners) of Principal Act.

129.—(1) Section 159C of the Principal Act is amended in subsection (1)—

• (a) by substituting the following for the definition of “neglect”:

“ ‘neglect’, in connection with or in relation to a relevant instrument, means—

• (a) subject to paragraph (b), in the case of an instrument or a specified statement, a failure to disclose in the instrument, or as the case may be, in the specified statement, all the facts and circumstances affecting the liability to duty of such instrument or specified statement,

• (b) in the case of an instrument to which section 8(2) applies, as between both the instrument and the statement referred to in that section, a failure to disclose all the facts and circumstances affecting the liability to duty of such instrument, or

• (c) in the case of an instruction of the type referred to in section 76, a failure to enter a correct instruction in a relevant system within the meaning of section 68;”,

• (b) in paragraph (a) of the definition of “relevant instrument” by substituting “specified statement delivered to the Commissioners” for “statement delivered to the Commissioners under any provision of this Act”,

• (c) in the definition of “relevant period” by substituting “was made;” for “was made.”, and

• (d) by inserting the following after the definition of “relevant period”:

“ ‘specified statement’ means—

• (a) an account delivered to the Commissioners under section 5,

• (b) a statement that is required to be delivered to the registrar under section 117(1)(b), or

• (c) a statement that is required to be delivered to the Commissioners under Part 9.”.

• (2) This section is effective from 3 February 2005.

PART 5 Capital Acquisitions Tax

130 Interpretation (Part 5).

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

131 Amendment of section 48 (affidavits and accounts) of Principal Act.

131.—(1) Section 48 of the Principal Act is amended, in subsection (2), by substituting the following for paragraph (a):

• “(a) details of all property in respect of which the grant of probate or administration is required and, in the case of a deceased person who on the date of his or her death was—

  • (i) resident or ordinarily resident and domiciled in the State, or

  • (ii) resident or ordinarily resident and not domiciled in the State and who had been resident in the State for the 5 consecutive years of assessment immediately preceding the year of assessment in which the date of death falls,

  details of all property, wherever situate, the beneficial ownership of which, on that person's death, is affected—

  - (I) by that person's will,
  
  - (II) by the rules for distribution on intestacy, or
  
  - (III) by Part IX or section 56 of the Succession Act 1965, or under the analogous law of another territory;”.
  

• (2) This section has effect in relation to Inland Revenue affidavits in respect of estates of deceased persons where those persons died on or after 1 December 2004.

132 Amendment of section 58 (penalties) of Principal Act.

132.—(1) Section 58 of the Principal Act is amended—

• (a) in subsection (1A)(b) by deleting “, or in the case of fraud twice the amount,” and

• (b) in subsection (3)(ii) by deleting “, or in the case of fraud, twice the amount,”.

• (2) This section applies to returns, additional returns, statements, declarations, evidence or valuations delivered, made or, as the case may be, furnished on or after the passing of this Act.

133 Amendment of section 72 (relief in respect of certain policies of insurance) of Principal Act.

133.—(1) Section 72 of the Principal Act is amended—

• (a) in subsection (1)—

• (i) before the definition of “insured”, by inserting the following definition:

“ ‘approved retirement fund tax’ means tax which a qualifying fund manager is obliged to deduct in accordance with the provisions of section 784A(4)(c) of the Taxes Consolidation Act 1997;”,

and

• (ii) in the definition of “relevant tax”, by substituting “means approved retirement fund tax and inheritance tax” for “means inheritance tax”,

and

• (b) in subsection (2), by inserting the following after paragraph (b):

• “(c) For the purposes of this section, an amount of the proceeds of a qualifying insurance policy equal to the amount of approved retirement fund tax shall be treated as applied in paying relevant tax of that amount.”.

• (2) This section has effect in relation to relevant tax payable in respect of inheritances taken on or after 3 February 2005.

134 Amendment of section 75 (exemption of specified collective investment undertakings) of Principal Act.

134.—(1) Section 75 of the Principal Act is amended—

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

• “(1) In this section—

‘common contractual fund’ has the meaning assigned to it by section 739I of the Taxes Consolidation Act 1997;

‘investment undertaking’ has the meaning assigned to it by section 739B of the Taxes Consolidation Act 1997;

‘unit’, in relation to a common contractual fund, has the meaning assigned to it by section 739I of the Taxes Consolidation Act 1997;

‘unit’, in relation to an investment undertaking, has the meaning assigned to it by section 739B of the Taxes Consolidation Act 1997.”,

• (b) in subsection (2), by substituting “common contractual fund” for “specified collective investment undertaking”, and

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

• “(3) Where—

  • (a) any unit of an investment undertaking which is comprised in a gift or inheritance came into the beneficial ownership of the disponer or became subject to the disposition prior to 15 February 2001, and

  • (b) the conditions at subparagraphs (i) and (iii) of subsection (2) are complied with,

  then that subsection shall apply to that unit of an investment undertaking comprised in a gift or inheritance, if at the date of the disposition, the proper law of the disposition was not the law of the State.”.

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

135 Amendment of section 89 (provisions relating to agricultural property) of Principal Act.

135.—(1) Section 89 of the Principal Act is amended, in subsection (4)—

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

• “(a) Where—

  • (i) all or any part of the agricultural property (other than crops, trees or underwood) comprised in a gift or inheritance is disposed of or compulsorily acquired within the period of 6 years after the date of the gift or inheritance, and

  • (ii) the proceeds from such disposal or compulsory acquisition are not fully expended in acquiring other agricultural property within a year of the disposal or within 6 years of the compulsory acquisition,

  then, except where the donee or successor dies before the property is disposed of or compulsorily acquired, all or, as the case may be, part of the agricultural property shall, for the purposes of subsection (2) and in accordance with paragraph (aa), be treated as property comprised in the gift or inheritance which is not agricultural property, and the taxable value of the gift or inheritance shall be determined accordingly (without regard to whether the donee or successor has ceased to be a farmer by virtue of the disposal or compulsory acquisition) and tax shall be payable accordingly.

• (aa) For the purposes of paragraph (a)—

  • (i) the market value of agricultural property which is treated under paragraph (a) as not being agricultural property is determined by the following formula—

  V1	×	N
  V1	×	—
  V1	×	V2

  where—

  V1 is the market value of all of the agricultural property on the valuation date without regard to paragraph (a),

  V2 is the market value of that agricultural property immediately before the disposal or compulsory acquisition of all or, as the case may be, a part thereof, and

  N is the amount of proceeds from the disposal or compulsory acquisition of all the agricultural property or, as the case may be, a part thereof, that was not expended in acquiring other agricultural property,

  and

  • (ii) the proceeds from a disposal include an amount equal to the market value of the consideration (not being cash) received for the disposal.”,

and

• (b) in paragraph (b), by substituting “disposal” for “sale”.

• (2) This section has effect in relation to disposals or compulsory acquisitions of agricultural property occurring on or after 3 February 2005.

136 Amendment of section 101 (withdrawal of relief) of Principal Act.

136.—(1) Section 101 of the Principal Act is amended by inserting the following after subsection (2):

• “(3) Notwithstanding subsection (2), where relevant business property (in this section referred to as ‘original property’) comprised in a gift or inheritance has been replaced directly or indirectly by other property and the market value of the original property is greater than the market value of that other property, then the reduction which would fall to be made under section 92 in respect of the original property shall be reduced in the same proportion as the market value of the other property bears to the market value of the original property.”.

• (2) This section has effect in relation to relevant business property which has been replaced by other property on or after 3 February 2005.

137 Amendment of section 107 (other relief from double taxation) of Principal Act.

137.—(1) Section 107 of the Principal Act is amended by substituting the following for subsection (2):

• “(2) Where the Commissioners are satisfied that a taxable gift or taxable inheritance, taken under a disposition by a donee or successor on the happening of any event, is reduced by the payment of foreign tax which is chargeable in connection with the same event under the same disposition in respect of property which is situate in any territory outside the State, they shall allow a credit in respect of that foreign tax against the gift tax or inheritance tax payable by that donee or successor on that taxable gift or taxable inheritance; but such credit shall not exceed—

  • (a) the amount of the gift tax or inheritance tax payable in respect of the same property by reason of such property being comprised in any taxable gift or taxable inheritance taken under that disposition on the happening of that event, or

  • (b) in so far as it has been paid, the amount of that foreign tax,

  whichever is the lesser.”.

• (2) This section has effect in relation to gifts or inheritances taken on or after 1 December 2004.

PART 6 Miscellaneous

138 Amendment of section 903 (power of inspection: PAYE) of Taxes Consolidation Act 1997.

138.—Section 903 of the Taxes Consolidation Act 1997 is amended by inserting the following subsection after subsection (2):

• “(2A)

  • (a) An authorised officer shall not, without the consent of the occupier, enter any premises, or that portion of any premises, which is occupied wholly and exclusively as a private residence, except on production by such officer of a warrant issued by a Judge of the District Court expressly authorising the authorised officer to so enter.

  • (b) A Judge of the District Court may issue a warrant under paragraph (a) if satisfied by information on oath that it is proper to do so for the purposes of this section.”.

139 Amendment of section 904 (power of inspection: tax deduction from payments to certain subcontractors) of Taxes Consolidation Act 1997.

139.—Section 904 of the Taxes Consolidation Act 1997 is amended by inserting the following subsection after subsection (2):

• “(2A)

  • (a) An authorised officer shall not, without the consent of the occupier, enter any premises, or that portion of any premises, which is occupied wholly and exclusively as a private residence, except on production by such officer of a warrant issued by a Judge of the District Court expressly authorising the authorised officer to so enter.

  • (b) A Judge of the District Court may issue a warrant under paragraph (a) if satisfied by information on oath that it is proper to do so for the purposes of this section.”.

140 Amendment of Chapter 4 (revenue powers) of Part 38 of Taxes Consolidation Act 1997.

140.—Chapter 4 of Part 38 of the Taxes Consolidation Act 1997 is amended by inserting the following section after section 902A:

“Powers of inspection: life policies.

902B.—(1) In this section— ‘assurance company’ has the same meaning as in section 3 of the Insurance Act 1936; ‘authorised officer’ means an officer of the Revenue Commissioners who is authorised by them in writing to exercise the powers conferred by this section; ‘policy’ and ‘premium’ have the same meanings, respectively, as in section 3 of the Insurance Act 1936; ‘relevant records’, in relation to a policy, means any document or any other written or printed material in any form, and includes any information stored, maintained or preserved by means of any mechanical, photographic or electronic device whether or not stored, maintained or preserved in a legible form, but does not include so much of any record that is of a medical nature. (2) A Revenue Commissioner may, subject to subsection (3) and for the purposes of subsection (7), direct an authorised officer to investigate a class or classes of policies issued by an assurance company and the policyholders to whom they were issued. (3) Directions may be given by a Revenue Commissioner under subsection (2) where he or she forms the opinion that there are circumstances suggesting that a class of policy or classes of policies issued by an assurance company may have been issued to policyholders, some of whom have paid one or more than one premium in respect of any policy concerned out of income or gains which were required to be, but were not, included in a return made by those policyholders under the Tax Acts or the Capital Gains Tax Acts; and for the purposes of this subsection the Revenue Commissioner may take into consideration information in relation to policies issued by other assurance companies and the policyholders of such policies. (4) An authorised officer, when investigating a class or classes of policies and the policyholders to whom they were issued, may at all reasonable times, enter any premises or place of business of an assurance company to inspect the relevant records held by the assurance company in respect of a sample of policies of that class or those classes and the policyholders of those policies. (5) Where an authorised officer has entered any premises or place of business of an assurance company for the purposes of this section, he or she may require the assurance company, or any employee of the assurance company, to produce the relevant records in a form which is legible and to furnish such information and explanations as the authorised officer requires in relation to the relevant records. (6) Where in accordance with this section an authorised officer inspects relevant records he or she may copy or make extracts from those records. (7) Information obtained by an authorised officer from inspecting relevant records may only be used for the purposes of enabling an authorised officer, within the meaning of section 902A, to make an application under that section to a judge of the High Court.”.

141 Amendment of Chapter 1 (income tax and corporation tax penalties) of Part 47 of Taxes Consolidation Act 1997.

141.—(1) Chapter 1 of Part 47 of the Taxes Consolidation Act 1997 is amended—

• (a) in section 1053—

• (i) in subsection (1)(ii) by deleting “the amount or, in the case of fraud, twice”, and

• (ii) in subsection (1A)(b) by deleting “the amount or, in the case of fraud, twice”,

and

• (b) in section 1054, in subsection (3)(a)(i)(II) by deleting “the amount or, in the case of fraud, twice”.

• (2) This section applies to returns, statements, declarations, or accounts delivered, made or, as the case may be, submitted on or after the passing of this Act.

142 Amendment of section 1078 (revenue offences) of Taxes Consolidation Act 1997.

142.—The Taxes Consolidation Act 1997 is amended in section 1078—

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

• “(1A)

  • (a) In this subsection—

  ‘facilitating’ means aiding, abetting, assisting, inciting or inducing;

  ‘fraudulent evasion of tax by a person’ means the person—

  • (a) evading or attempting to evade any payment or deduction of tax required under the Acts to be paid by the person or, as the case may be, required under the Acts to be deducted from amounts due to the person, or

  • (b) claiming or obtaining, or attempting to claim or obtain, relief or exemption from, or payment or repayment of, any tax, being relief, exemption, payment or repayment, to which the person is not entitled under the Acts,

  where, for those purposes, the person deceives, omits, conceals or uses any other dishonest means including—

  - (i) providing false, incomplete or misleading information, or
  
  - (ii) failing to furnish information,
  
    to the Revenue Commissioners or to any other person.
  

  • (b) For the purposes of this subsection and subsection (5) a person (in this paragraph referred to as the ‘first-mentioned person’) is reckless as to whether or not he or she is concerned in facilitating—

    • (i) the fraudulent evasion of tax by a person, being another person, or

    • (ii) the commission of an offence under subsection (2) by a person, being another person,

    if the first-mentioned person disregards a substantial risk that he or she is so concerned, and for those purposes ‘substantial risk’ means a risk of such a nature and degree that, having regard to all the circumstances and the extent of the information available to the first-mentioned person, its disregard by that person involves culpability of a high degree.

  • (c) A person shall, without prejudice to any other penalty to which the person may be liable, be guilty of an offence under this section if the person—

    • (i) is knowingly concerned in the fraudulent evasion of tax by the person or any other person,

    • (ii) is knowingly concerned in, or is reckless as to whether or not the person is concerned in, facilitating—

      • (I) the fraudulent evasion of tax, or

      • (II) the commission of an offence under subsection (2) (other than an offence under paragraph (b) of that subsection),

      by any other person, or

    • (iii) is knowingly concerned in the fraudulent evasion or attempted fraudulent evasion of any prohibition or restriction on importation for the time being in force, or the removal of any goods from the State, in contravention of any provision of the Acts.”,

• (b) in subsection (2)—

• (i) by substituting for paragraph (f) the following paragraph:

• “(f) fails to pay to the Collector-General appropriate tax (within the meaning of section 739E) within the time specified in that behalf in section 739F,”,

• (ii) in paragraph (i) by substituting “by the Acts,” for “by the Acts, or”, and

• (iii) by inserting after paragraph (i) the following paragraph:

• “(ii) (i) fails to deduct tax required to be deducted by the person under section 531(1), or

• (ii) fails, having made that deduction, to pay the sum deducted to the Collector-General within the time specified in that behalf in section 531(3A),

or”,

and

• (c) in subsection (5) by substituting “to have been committed with the consent or connivance of or to be attributable to any recklessness (as provided for by subsection (1A)(b)) on the part of” for “to have been committed with the consent or connivance of”.

143 Amendment of section 1086 (publication of names of tax defaulters) of Taxes Consolidation Act 1997.

143.—(1) Section 1086 of the Taxes Consolidation Act 1997 is amended—

• (a) in subsection (4)(c) by substituting “€30,000” for “€12,700”, and

• (b) by inserting the following subsection after subsection (4):

• “(4A)

  • (a) In this subsection—

  ‘the consumer price index number’ means the All Items Consumer Price Index Number compiled by the Central Statistics Office;

  ‘the consumer price index number relevant to a year’ means the consumer price index number at the mid-December before the commencement of that year expressed on the basis that the consumer price index at mid-December 2001 was 100;

  ‘the Minister’ means the Minister for Finance.

  • (b) The Minister shall, in the year 2010 and in every fifth year thereafter, by order provide, in accordance with paragraph (c), an amount in lieu of the amount referred to in subsection (4)(c), or where such an order has been made previously, in lieu of the amount specified in the last order so made.

  • (c) For the purposes of paragraph (b) the amount referred to in subsection (4)(c) or in the last previous order made under the said paragraph (b), as the case may be, shall be adjusted by—

    • (i) multiplying that amount by the consumer price index number relevant to the year in which the adjustment is made and dividing the product by the consumer price index number relevant to the year in which the amount was previously provided for, and

    • (ii) rounding the resulting amount up to the next €1,000.

  • (d) An order made under this subsection shall specify that the amount provided for by the order—

    • (i) takes effect from a specified date, being 1 January in the year in which the order is made, and

    • (ii) does not apply to any case in which the specified liability referred to in paragraphs (c) and (d) of subsection (2) includes tax, the liability in respect of which arose before, or which relates to periods which commenced before, that specified date.”.

• (2) Subsection (1)(a) shall not apply where the specified liability referred to in paragraphs (c) and (d) of subsection (2) of section 1086 of the Taxes Consolidation Act 1997 includes tax, the liability in respect of which arose before, or which relates to periods which commenced before, 1 January 2005.

144 Amendment of Chapter 3A (Implementation of Council Directive 2003/48/EC of 3 June 2003 on Taxation of Savings Income in the Form of Interest Payments and Related Matters) of Part 38 of Taxes Consolidation Act 1997.

144.—(1) Chapter 3A (Implementation of Council Directive 2003/48/EC of 3 June 2003 on Taxation of Savings Income in the Form of Interest Payments and Related Matters) of Part 38 of the Taxes Consolidation Act 1997 is amended—

• (a) in section 898B(1) by substituting the following definition for the definition of “the Directive”:

“ ‘the Directive’ means Council Directive 2003/48/EC of 3 June 2003¹ as amended;”,

• (b) in sections 898F(5)(c) and 898G(6)(c) by substituting “1 July 2005” for “1 January 2005”,

• (c) in section 898G(3)(a)(iii) by substituting “territory” for “relevant territory”,

• (d) in section 898H—

• (i) by substituting the following for the matter immediately preceding paragraph (a) in subsection (1):

“Every paying agent shall, as respects an interest payment made for the immediate benefit of a beneficial owner on or after 1 July 2005 who is resident in a relevant territory, make and deliver to the Revenue Commissioners within 3 months of the end of a tax year (being the tax year 2005 and subsequent years) a return of all interest payments, as respects the tax year 2005, so made during the period 1 July 2005 to 31 December 2005 by that paying agent and, as respects any other tax year, so made by that paying agent during that year consisting of—”,

and

• (ii) by substituting the following for paragraph (b) of subsection (4):

• “(b) (i) (I) the total amount of interest payments which are within the meaning of paragraphs (a), (b), (c), (d), (e) and (g) of subsection (1) of section 898E, and

  • (II) the total amount of interest payments which are within the meaning of paragraphs (f) and (h) of that subsection,

  or

  • (ii) in a case where the paying agent is a residual entity—

    • (I) the total amount of deemed interest payments which are within the meaning of paragraphs (a), (b), (c), (d), (e) and (g) of subsection (1) of section 898E, and

    • (II) the total amount of deemed interest payments which are within the meaning of paragraphs (f) and (h) of that subsection.”,

• (e) in section 898I by substituting the following for paragraph (c):

• “(c) the total amount of the interest payments so made or so secured by it in the tax year (and for this purpose the tax year 2005 shall be deemed to begin on 1 July 2005 and end on 31 December 2005).”,

• (f) by substituting the following for subsections (1) to (3) of section 898M—

• “(1) Subject to subsections (3) and (4), where tax has been deducted from an interest payment in a relevant territory under provisions applicable in such territory in accordance with the Directive or the arrangements and—

  • (a) the interest payment is, or but for an exemption or relief from tax would be, taken into account in computing the total income of an individual for the tax year in which the tax was deducted for the purposes of income tax, and

  • (b) the individual is resident in the State for that tax year,

  then—

  - (i) the individual may claim a credit for the tax deducted from the payment against any income tax chargeable on that individual for that year and, in determining the amount of tax payable on the individual's total income for that year, credit shall be given for the tax deducted from the interest payment and the amount of the credit shall be the amount of tax deducted from the interest payment, and
  
  - (ii) where—
  
      - (I) the tax deducted from the interest payment exceeds any such income tax chargeable, the excess shall be repaid, or
  
      - (II) no such income tax is chargeable, an amount equal to the tax deducted from the interest payment shall be repaid to the individual.
  

• (2) Subject to subsections (3) and (4), where tax has been deducted from an interest payment in a relevant territory under provisions applicable in such territory in accordance with the Directive or the arrangements and—

  • (a) the interest payment is, or but for an exemption or relief from tax would be, taken into account in computing the chargeable gains of an individual for the tax year in which the tax was deducted for the purposes of the Capital Gains Tax Acts, and

  • (b) the individual is resident in the State for that tax year,

  then—

  - (i) the individual may claim a credit for the tax deducted from the payment against the capital gains tax chargeable on that individual for that year and, in determining the amount of tax payable on the chargeable gains of that individual for that year, credit shall be given for the tax deducted from the interest payment and the amount of the credit shall be the amount of tax deducted from the interest payment, and
  
  - (ii) where—
  
      - (I) the tax deducted exceeds any such capital gains tax, the excess shall be repaid to the individual, or
  
      - (II) no such capital gains tax is chargeable, an amount equal to the tax deducted shall be repaid to the individual.
  

• (3)

  • (a) The credit referred to in subsection (1) or (2), as the case may be, shall apply only after the application of any other credit to which the individual may be entitled under any arrangement made under section 826 in respect of any tax deducted from the payment under provisions other than those referred to in subsection (1) or (2).

  • (b) Subsection (1) or (2) shall not apply where—

    • (i) the individual referred to in the subsection concerned has obtained relief under the law of a territory outside the State in respect of tax that has been deducted from an interest payment in a relevant territory under provisions applicable in such territory in accordance with the Directive or the arrangements, and

    • (ii) the individual was resident in that territory or was treated as being resident in that territory under arrangements made under section 826 for the year of assessment in which the tax was deducted.”,

• (g) in section 898O by substituting the following for subsection (1):

• “(1) Where any person required to make a return under this Chapter—

  • (a) fails, without reasonable excuse, to comply with any of the requirements of section 898F or 898G,

  • (b) makes an incorrect or incomplete return under this Chapter, or

  • (c) fails, without reasonable excuse, to make such a return,

  that person shall be liable to a penalty of €19,045 and, in the case of paragraphs (a) and (c), if the failure continues that person shall be liable to a further penalty of €2,535 for each day on which the failure continues.”,

• (h) by substituting the following for section 898P: