Finance Act 2005

“Arrangements with third countries and dependent and associated territories of Member States.

898P.—(1) This Chapter shall apply for the purposes of implementing any arrangements made with a territory being a dependent or associated territory of a Member State (in this Chapter referred to as the ‘arrangements’) in relation to the automatic exchange of information and the application of a withholding tax referred to in paragraph 2(ii) of Article 17 of the Directive. (2) (a) In this subsection— ‘Council Decision on signing of agreement with Andorra’ means Council Decision (2004/828/EC) of 2 November 2004 concerning the signature of the Agreement between the European Community and the Principality of Andorra providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments and the approval and signature of the accompanying Memorandum of Understanding1; ‘Council Decision on signing of agreement with Liechtenstein’ means Council Decision (2004/897/EC) of 29 November 2004 on the signing of the Agreement between the European Community and the Principality of Liechtenstein providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments and the approval and signing of the accompanying Memorandum of Understanding2; ‘Council Decision on signing of agreement with Monaco’ means Council Decision (2005/35/EC) of 7 December 2004 on the signing of the Agreement between the European Community and the Principality of Monaco providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments and the approval and signing of the accompanying Memorandum of Understanding3; ‘Council Decision on signing of agreement with San Marino’ means Council Decision (2004/903/EC) of 29 November 2004 on the signing of the Agreement between the European Community and Republic of San Marino providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments and the approval and signing of the accompanying Memorandum of Understanding4; ‘Council Decision on signing and conclusion of agreement with the Swiss Confederation’ means Council Decision (2004/911/EC) of 2 June 2004 on the signing and conclusion of the Agreement between the European Community and the Swiss Confederation providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments and the accompanying Memorandum of Understanding5. (b) (i) Article 12 (Exchange of information on request) of the agreement attached to the Council Decision on signing of agreement with Andorra, (ii) Article 10 (Exchange of information) of the agreement attached to the Council Decision on signing of agreement with Liechtenstein, (iii) Article 12 (Transmission of information on request) of the agreement attached to the Council Decision on signing of agreement with Monaco, (iv) Article 13 (Exchange of information on request) of the agreement attached to the Council Decision on signing of agreement with San Marino, and (v) Article 10 (Exchange of information) of the agreement attached to the Council Decision on signing and conclusion of agreement with the Swiss Confederation, shall, notwithstanding any other enactment, have the force of law. (c) Section 898M shall apply for the purposes of implementing— (i) Article 10 (Elimination of double taxation) of the agreement attached to the Council Decision on signing of agreement with Andorra, (ii) Article 9 (Elimination of double taxation) of the agreement attached to the Council Decision on signing of agreement with Liechtenstein, (iii) Article 10 (Elimination of double taxation and/or repayment of withholding tax) of the agreement attached to the Council Decision on signing of agreement with Monaco, (iv) Article 10 (Elimination of double taxation) of the agreement attached to the Council Decision on signing of agreement with San Marino, and (v) Article 9 (Elimination of double taxation) of the agreement attached to the Council Decision on signing and conclusion of agreement with the Swiss Confederation, in the same way as it applies for the purposes of the Directive or the arrangements, and references in that section to tax deducted from an interest payment in a relevant territory under provisions applicable in such territory in accordance with the Directive or the arrangements shall be construed as references to— (I) in the case of Liechtenstein or the Swiss Confederation, as the case may be, a retention from an interest payment under provisions applicable in that country in accordance with the agreement, and (II) in the case of Andorra, Monaco or San Marino, as the case may be, tax withheld from an interest payment under provisions applicable in that country in accordance with the agreement, and references to tax deducted and cognate expressions shall be construed accordingly. (d) (i) The Revenue Commissioners may make regulations generally for the purposes of implementing the provisions of any arrangements the Government may make with the Government of any of the countries referred to in article 17(2)(i) of the Directive for the purposes of supplementing paragraph (b). (ii) For the purposes of subparagraph (i), arrangements made with the head of a State shall be regarded as made with the Government of that State. (e) Section 898L shall apply for the purposes of Article 9 (Voluntary disclosure) of the agreement attached to the Council Decision on signing of agreement with Andorra in the same way as it applies for the purposes of the Directive.”,

and

• (i) in section 898R by substituting—

• (i) “898O” for “898P” in subsection (1),

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

• “(2) Section 898O shall apply as respects an act or omission which takes place or begins on or after the date of the passing of the Finance Act 2005.”,

and

• (iii) “1 July 2005” for “1 January 2005” in subsection (3).

• (2) Section 912A(1) of the Taxes Consolidation Act 1997 is amended by substituting the following for the definition of “foreign tax”:

“ ‘foreign tax’ means a tax chargeable under the laws of a territory in relation to which arrangements (in this section referred to as ‘the arrangements’) having the force of law by virtue of section 826, 898P(2) or section 106 of the Capital Acquisitions Tax Consolidation Act 2003 apply;”.

• (3) This section applies as on and from the date of the passing of this Act.

145 Interest on certain overdue tax.

145.—(1) Chapter 5 of Part 47 of the Taxes Consolidation Act 1997 is amended by substituting the following for sections 1080 and 1081:

“Interest on overdue income tax, corporation tax and capital gains tax.	1080.—(1) In this section— ‘chargeable period’ has the same meaning as in section 321(2); ‘chargeable person’ has the same meaning as in section 950(1); ‘period of delay’, in relation to any tax due and payable, means the period during which that tax remains unpaid; ‘Table’ means the Table to subsection (2); ‘tax’ means income tax, corporation tax or capital gains tax, as appropriate; ‘relevant period’, in relation to a period of delay which falls into more than one of the periods specified in column (1) of the Table, means any part of the period of delay which falls into, or is the same as, a period specified in that column. (2) (a) Subject to this section and section 1081— (i) as respects tax due and payable for a chargeable period beginning before 1 January 2005, any tax charged by any assessment to tax shall carry interest from the date when the tax becomes due and payable until payment, and (ii) as respects tax due and payable for a chargeable period beginning on or after 1 January 2005, any tax due and payable by a chargeable person for a chargeable period shall carry interest from the date when the tax becomes due and payable until payment, and the amount of that interest shall be determined in accordance with paragraph (c). (b) Subject to this section and section 1081, any tax charged by any assessment to income tax shall, notwithstanding any appeal against such assessment, carry interest from the date when, if there were no appeal against the assessment, the tax would become due and payable under section 960 until payment, and the amount of that interest shall be determined in accordance with paragraph (c). (c) The interest to be carried by the tax referred to in paragraph (a) or (b), as the case may be, shall be— (i) where one of the periods specified in column (1) of the Table includes or is the same as the period of delay, the amount determined by the formula— T × D × P where— T is the tax due and payable which remains unpaid, D is the number of days (including part of a day) forming the period of delay, and P is the appropriate percentage in column (2) of the Table opposite the period specified in column (1) of the Table within which the period of delay falls or which is the same as the period of delay, and (ii) where a continuous period formed by 2 or more of the periods specified in column (1) of the Table, but not (as in subparagraph (i)) only one such period, includes or is the same as the period of delay, the aggregate of the amounts due in respect of each relevant period which forms part of the period of delay, and the amount due in respect of each such relevant period shall be determined by the formula— T × D × P where— T is the tax due and payable which remains unpaid, D is the number of days (including part of a day) forming the relevant period, and P is the appropriate percentage in column (2) of the Table opposite the period specified in column (1) of the Table into which the relevant period falls or which is the same as the relevant period.	1080.—(1) In this section— ‘chargeable period’ has the same meaning as in section 321(2); ‘chargeable person’ has the same meaning as in section 950(1); ‘period of delay’, in relation to any tax due and payable, means the period during which that tax remains unpaid; ‘Table’ means the Table to subsection (2); ‘tax’ means income tax, corporation tax or capital gains tax, as appropriate; ‘relevant period’, in relation to a period of delay which falls into more than one of the periods specified in column (1) of the Table, means any part of the period of delay which falls into, or is the same as, a period specified in that column. (2) (a) Subject to this section and section 1081— (i) as respects tax due and payable for a chargeable period beginning before 1 January 2005, any tax charged by any assessment to tax shall carry interest from the date when the tax becomes due and payable until payment, and (ii) as respects tax due and payable for a chargeable period beginning on or after 1 January 2005, any tax due and payable by a chargeable person for a chargeable period shall carry interest from the date when the tax becomes due and payable until payment, and the amount of that interest shall be determined in accordance with paragraph (c). (b) Subject to this section and section 1081, any tax charged by any assessment to income tax shall, notwithstanding any appeal against such assessment, carry interest from the date when, if there were no appeal against the assessment, the tax would become due and payable under section 960 until payment, and the amount of that interest shall be determined in accordance with paragraph (c). (c) The interest to be carried by the tax referred to in paragraph (a) or (b), as the case may be, shall be— (i) where one of the periods specified in column (1) of the Table includes or is the same as the period of delay, the amount determined by the formula— T × D × P where— T is the tax due and payable which remains unpaid, D is the number of days (including part of a day) forming the period of delay, and P is the appropriate percentage in column (2) of the Table opposite the period specified in column (1) of the Table within which the period of delay falls or which is the same as the period of delay, and (ii) where a continuous period formed by 2 or more of the periods specified in column (1) of the Table, but not (as in subparagraph (i)) only one such period, includes or is the same as the period of delay, the aggregate of the amounts due in respect of each relevant period which forms part of the period of delay, and the amount due in respect of each such relevant period shall be determined by the formula— T × D × P where— T is the tax due and payable which remains unpaid, D is the number of days (including part of a day) forming the relevant period, and P is the appropriate percentage in column (2) of the Table opposite the period specified in column (1) of the Table into which the relevant period falls or which is the same as the relevant period.	1080.—(1) In this section— ‘chargeable period’ has the same meaning as in section 321(2); ‘chargeable person’ has the same meaning as in section 950(1); ‘period of delay’, in relation to any tax due and payable, means the period during which that tax remains unpaid; ‘Table’ means the Table to subsection (2); ‘tax’ means income tax, corporation tax or capital gains tax, as appropriate; ‘relevant period’, in relation to a period of delay which falls into more than one of the periods specified in column (1) of the Table, means any part of the period of delay which falls into, or is the same as, a period specified in that column. (2) (a) Subject to this section and section 1081— (i) as respects tax due and payable for a chargeable period beginning before 1 January 2005, any tax charged by any assessment to tax shall carry interest from the date when the tax becomes due and payable until payment, and (ii) as respects tax due and payable for a chargeable period beginning on or after 1 January 2005, any tax due and payable by a chargeable person for a chargeable period shall carry interest from the date when the tax becomes due and payable until payment, and the amount of that interest shall be determined in accordance with paragraph (c). (b) Subject to this section and section 1081, any tax charged by any assessment to income tax shall, notwithstanding any appeal against such assessment, carry interest from the date when, if there were no appeal against the assessment, the tax would become due and payable under section 960 until payment, and the amount of that interest shall be determined in accordance with paragraph (c). (c) The interest to be carried by the tax referred to in paragraph (a) or (b), as the case may be, shall be— (i) where one of the periods specified in column (1) of the Table includes or is the same as the period of delay, the amount determined by the formula— T × D × P where— T is the tax due and payable which remains unpaid, D is the number of days (including part of a day) forming the period of delay, and P is the appropriate percentage in column (2) of the Table opposite the period specified in column (1) of the Table within which the period of delay falls or which is the same as the period of delay, and (ii) where a continuous period formed by 2 or more of the periods specified in column (1) of the Table, but not (as in subparagraph (i)) only one such period, includes or is the same as the period of delay, the aggregate of the amounts due in respect of each relevant period which forms part of the period of delay, and the amount due in respect of each such relevant period shall be determined by the formula— T × D × P where— T is the tax due and payable which remains unpaid, D is the number of days (including part of a day) forming the relevant period, and P is the appropriate percentage in column (2) of the Table opposite the period specified in column (1) of the Table into which the relevant period falls or which is the same as the relevant period.
“Interest on overdue income tax, corporation tax and capital gains tax.		TABLE	TABLE
“Interest on overdue income tax, corporation tax and capital gains tax.		(Period) (1)	(Percentage) (2)
“Interest on overdue income tax, corporation tax and capital gains tax.		From 6 April 1963 to 31 July 1971	0.0164%
“Interest on overdue income tax, corporation tax and capital gains tax.		From 1 August 1971 to 30 April 1975	0.0246%
“Interest on overdue income tax, corporation tax and capital gains tax.		From 1 May 1975 to 31 July 1978	0.0492%
“Interest on overdue income tax, corporation tax and capital gains tax.		From 1 August 1978 to 31 March 1998	0.041%
“Interest on overdue income tax, corporation tax and capital gains tax.		From 1 April 1998 to 31 March 2005	0.0322%
“Interest on overdue income tax, corporation tax and capital gains tax.		From 1 April 2005 to the date of payment	0.0273%
“Interest on overdue income tax, corporation tax and capital gains tax.	(3) The interest payable under this section— (a) shall be payable without deduction of income tax and shall not be allowed as a deduction in computing any income, profits or losses for any of the purposes of the Tax Acts, and (b) shall be deemed to be a debt due to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Revenue Commissioners. (4) Subject to subsection (5)— (a) every enactment relating to the recovery of tax, (b) every rule of court so relating, (c) section 81 of the Bankruptcy Act 1988, and (d) sections 98 and 285 of the Companies Act 1963, shall apply to the recovery of any amount of interest payable on that tax as if that amount of interest were a part of that tax. (5) In proceedings instituted by virtue of subsection (4)— (a) a certificate signed by an officer of the Revenue Commissioners certifying that a stated amount of interest is due and payable by the person against whom the proceedings were instituted shall be evidence until the contrary is proven that that amount is so due and payable, and (b) a certificate so certifying and purporting to be signed as specified in this subsection may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.	(3) The interest payable under this section— (a) shall be payable without deduction of income tax and shall not be allowed as a deduction in computing any income, profits or losses for any of the purposes of the Tax Acts, and (b) shall be deemed to be a debt due to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Revenue Commissioners. (4) Subject to subsection (5)— (a) every enactment relating to the recovery of tax, (b) every rule of court so relating, (c) section 81 of the Bankruptcy Act 1988, and (d) sections 98 and 285 of the Companies Act 1963, shall apply to the recovery of any amount of interest payable on that tax as if that amount of interest were a part of that tax. (5) In proceedings instituted by virtue of subsection (4)— (a) a certificate signed by an officer of the Revenue Commissioners certifying that a stated amount of interest is due and payable by the person against whom the proceedings were instituted shall be evidence until the contrary is proven that that amount is so due and payable, and (b) a certificate so certifying and purporting to be signed as specified in this subsection may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.	(3) The interest payable under this section— (a) shall be payable without deduction of income tax and shall not be allowed as a deduction in computing any income, profits or losses for any of the purposes of the Tax Acts, and (b) shall be deemed to be a debt due to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Revenue Commissioners. (4) Subject to subsection (5)— (a) every enactment relating to the recovery of tax, (b) every rule of court so relating, (c) section 81 of the Bankruptcy Act 1988, and (d) sections 98 and 285 of the Companies Act 1963, shall apply to the recovery of any amount of interest payable on that tax as if that amount of interest were a part of that tax. (5) In proceedings instituted by virtue of subsection (4)— (a) a certificate signed by an officer of the Revenue Commissioners certifying that a stated amount of interest is due and payable by the person against whom the proceedings were instituted shall be evidence until the contrary is proven that that amount is so due and payable, and (b) a certificate so certifying and purporting to be signed as specified in this subsection may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.
Effect on interest of reliefs given by discharge or repayment.	1081.—(1) Subject to subsection (2)— (a) where for any year of assessment or accounting period, as the case may be, relief from any tax referred to in section 1080(2) is given to any person by a discharge of any of that tax, such adjustment shall be made of the amount of interest payable under that section in relation to that tax, and such repayment shall be made of any amounts of interest previously paid under that section in relation to that tax, as are necessary to secure that the total sum, if any, paid or payable under that section in relation to that tax is the same as it would have been if the tax discharged had never been due and payable, and (b) where relief from tax paid for any year of assessment or accounting period, as the case may be, is given to any person by repayment, that person shall be entitled to require that the amount repaid shall be treated for the purposes of this subsection to the extent possible as if it were a discharge of the tax charged on that person (whether alone or together with other persons) by any assessment for the same year or period; but the relief shall not be applied to any assessment made after the relief was given and shall not be applied to more than one assessment so as to reduce without extinguishing the amount of tax charged thereby. (2) No relief, whether by discharge or repayment, shall be treated as affecting any tax charged by an assessment to— (a) income tax or any income tax due and payable unless it is a relief from income tax, (b) corporation tax or any corporation tax due and payable unless it is a relief from corporation tax, or (c) capital gains tax or capital gains tax due and payable unless it is a relief from capital gains tax.”.	1081.—(1) Subject to subsection (2)— (a) where for any year of assessment or accounting period, as the case may be, relief from any tax referred to in section 1080(2) is given to any person by a discharge of any of that tax, such adjustment shall be made of the amount of interest payable under that section in relation to that tax, and such repayment shall be made of any amounts of interest previously paid under that section in relation to that tax, as are necessary to secure that the total sum, if any, paid or payable under that section in relation to that tax is the same as it would have been if the tax discharged had never been due and payable, and (b) where relief from tax paid for any year of assessment or accounting period, as the case may be, is given to any person by repayment, that person shall be entitled to require that the amount repaid shall be treated for the purposes of this subsection to the extent possible as if it were a discharge of the tax charged on that person (whether alone or together with other persons) by any assessment for the same year or period; but the relief shall not be applied to any assessment made after the relief was given and shall not be applied to more than one assessment so as to reduce without extinguishing the amount of tax charged thereby. (2) No relief, whether by discharge or repayment, shall be treated as affecting any tax charged by an assessment to— (a) income tax or any income tax due and payable unless it is a relief from income tax, (b) corporation tax or any corporation tax due and payable unless it is a relief from corporation tax, or (c) capital gains tax or capital gains tax due and payable unless it is a relief from capital gains tax.”.	1081.—(1) Subject to subsection (2)— (a) where for any year of assessment or accounting period, as the case may be, relief from any tax referred to in section 1080(2) is given to any person by a discharge of any of that tax, such adjustment shall be made of the amount of interest payable under that section in relation to that tax, and such repayment shall be made of any amounts of interest previously paid under that section in relation to that tax, as are necessary to secure that the total sum, if any, paid or payable under that section in relation to that tax is the same as it would have been if the tax discharged had never been due and payable, and (b) where relief from tax paid for any year of assessment or accounting period, as the case may be, is given to any person by repayment, that person shall be entitled to require that the amount repaid shall be treated for the purposes of this subsection to the extent possible as if it were a discharge of the tax charged on that person (whether alone or together with other persons) by any assessment for the same year or period; but the relief shall not be applied to any assessment made after the relief was given and shall not be applied to more than one assessment so as to reduce without extinguishing the amount of tax charged thereby. (2) No relief, whether by discharge or repayment, shall be treated as affecting any tax charged by an assessment to— (a) income tax or any income tax due and payable unless it is a relief from income tax, (b) corporation tax or any corporation tax due and payable unless it is a relief from corporation tax, or (c) capital gains tax or capital gains tax due and payable unless it is a relief from capital gains tax.”.

• (2) Section 1082 of the Taxes Consolidation Act 1997 is amended by inserting the following after subsection (5):

• “(6) This section shall not apply as respects any tax due and payable for a year of assessment or an accounting period beginning on or after 1 January 2005.”.

• (3) Part 11 of the Stamp Duties Consolidation Act 1999 is amended by inserting the following after Chapter 7:

“Chapter 8

Calculation of interest on unpaid duty and other amounts

Calculation of interest on unpaid duty and other amounts.

159D.—(1) In this section— ‘period of delay’, in relation to any unpaid duty or other amount referred to in a specified provision, means the period referred to in the specified provision in respect of which period interest is chargeable, charged, payable or recoverable, as the case may be, in accordance with that provision; ‘specified provision’ means any section of this Act other than section 126(7) which provides for interest to be charged, chargeable, payable or recoverable, as the case may be, in respect of any unpaid duty or other amount due and payable under that section. (2) The amount of interest charged, chargeable, payable or recoverable in respect of any unpaid duty or other amount due and payable or recoverable under a specified provision shall be the amount determined by the formula— A × D × P where— A is the duty or other amount due and payable under the specified provision which remains unpaid, D is the number of days (including part of a day) forming the period of delay, and P is 0.0273 per cent.”.

• (4)
• (a) Section 51 of the Capital Acquisitions Tax Consolidation Act 2003 is amended by substituting the following for subsection (2):

“(2)(a) Simple interest is payable, without the deduction of income tax, on the tax from the valuation date to the date of payment, and the amount of that interest shall be determined in accordance with paragraph (c).

• (b) Interest payable in accordance with paragraph (a) is chargeable and recoverable in the same manner as if it were part of the tax.

• (c) (i) In this paragraph—

‘period of delay’, in relation to any tax due and payable, means the period during which that tax remains unpaid;

‘relevant period’, in relation to a period of delay which falls into more than one of the periods specified in column (1) of Part 1 of the Table, means any part of the period of delay which falls into, or is the same as, a period specified in that column;

‘Table’ means the Table to this subsection.

- (ii) The interest payable in accordance with paragraph (*a*), shall be—

    - (I) where one of the periods specified in column (1) of Part 1 of the Table includes or is the same as the period of delay, the amount determined by the formula—

      T × D × P

      where—

      T is the tax due and payable which remains unpaid,

      D is the number of days (including part of a day) forming the period of delay, and

      P is the appropriate percentage in column (2) of the Table opposite the period specified in column (1) of Part 1 of the Table within which the period of delay falls or which is the same as the period of delay,

      and

    - (II) where a continuous period formed by 2 or more of the periods specified in column (1) of Part 1 of the Table, but not (as in clause (I)) only one such period, includes or is the same as the period of delay, the aggregate of the amounts due in respect of each relevant period which forms part of the period of delay, and the amount due in respect of each such relevant period shall be determined by the formula—

      T × D × P

      where—

      T is the tax due and payable which remains unpaid,

      D is the number of days (including part of a day) forming the relevant period, and

      P is the appropriate percentage in column (2) of Part 1 of the Table opposite the period specified in column (1) of Part 1 of the Table into which the relevant period falls or which is the same as the relevant period.

      |  |  |  |
      | --- | --- | --- |
      |  | TABLE Part 1 | TABLE Part 1 |
      |  | (Period) (1) | (Percentage) (2) |
      |  | From 31 March 1976 to 31 July 1978 | 0.0492% |
      |  | From 1 August 1978 to 31 March 1998 | 0.0410% |
      |  | From 1 April 1998 to 31 March 2005 | 0.0322% |
      |  | From 1 April 2005 to the date of payment | 0.0273% |
      |  | Part 2 | Part 2 |
      |  | (Period) (1) | (Percentage) (2) |
      |  | From 8 February 1995 to 31 March 1998 | 0.0307% |
      |  | From 1 April 1998 to 31 March 2005 | 0.0241% |
      |  | From 1 April 2005 until the date of payment | 0.0204% |

• (2A) For the purposes of calculating interest on the whole or the part of the tax to which section 55 applies, subsection (2) shall apply as if references in that subsection to Part 1 of the Table were references to Part 2 of the Table.”.

• (b) Section 55 of the Capital Acquisitions Tax Consolidation Act 2003 is amended by substituting the following for paragraph (b) of subsection (2):

• “(b) notwithstanding subsection (2) of section 51, the interest payable on that whole or part of the tax shall be determined—

  • (i) in accordance with that subsection as modified by subsection (2A) of that section, or

  • (ii) in such other manner as may be prescribed by the Minister for Finance by regulations,

  instead of in accordance with subsection (2) of that section, and that section shall apply as regards that whole or part of the tax as if the interest so payable were determined under that section, but the interest payable on any overdue instalment of that whole or part of that tax, or on such part of the tax as would represent any such overdue instalment if that whole or part of the tax were being paid by instalments, shall continue to be determined in accordance with subsection (2) of section 51.”.

• (5)
• (a) This subsection applies to interest payable under—

• (i) section 18(2) of the Wealth Tax Act 1975,

• (ii) section 105(1) of the Finance Act 1983, and

• (iii) section 117 of the Finance Act 1993.

• (b) Where any interest to which this subsection applies is chargeable on or after 1 April 2005 in respect of tax due to be paid whether before, on or after that date, then such interest shall, notwithstanding the provisions of any other enactment, be chargeable at the rate of 0.0273 per cent per day or part of a day instead of at the rate specified in that other enactment and the sections referred to in paragraph (a) shall have effect as if for interest so chargeable that rate were substituted for the rate specified in each of those sections.

• (6)
• (a) The provisions set out in paragraph (b) are, in so far as they are not already repealed, repealed with effect from 1 April 2005 to the extent that they apply to interest chargeable or payable on income tax, corporation tax, capital gains tax, gift tax and inheritance tax that has not been paid before that date regardless of when that tax became due and payable.

• (b) The provisions referred to in paragraph (a) are—

• (i) section 14 of the Finance Act 1962;

• (ii) sections 550, 551 and 552 of the Income Tax Act 1967;

• (iii) section 17 of the Finance Act 1971;

• (iv) section 28 of the Finance Act 1975;

• (v) section 41 of the Capital Acquisitions Tax Act 1976;

• (vi) sections 43 and 46 of the Finance Act 1978;

• (vii) the provisions of section 1083 of the Taxes Consolidation Act 1997 except in so far as they apply section 1082 of that Act to capital gains tax;

• (viii) section 133 of the Finance Act 1998; and

• (ix) section 129 of the Finance Act 2002.

• (7)
• (a) In each provision of the Taxes Consolidation Act 1997 set out in column (1) of Part 1 of Schedule 5 for the words in that provision which are set out in column (2) of that Part there shall be substituted the words set out opposite the entry in column (3) of that Part.

• (b) In each provision of the Stamp Duties Consolidation Act 1999 set out in column (1) of Part 2 of Schedule 5 for the words in that provision which are set out in column (2) of that Part there shall be substituted the words set out opposite the entry in column (3) of that Part.

• (8)
• (a) Subsections (1) and (7)(a) apply to any unpaid income tax, corporation tax or capital gains tax, as the case may be, that has not been paid before 1 April 2005 regardless of when that tax becomes due and payable and notwithstanding anything to the contrary in any other enactment other than section 1082 of the Taxes Consolidation Act 1997, but subsection (1) shall not apply to the part, if any, before 1 January 1963 of any period of delay (within the meaning of section 1080 of that Act as substituted by this section).

• (b) Subsection (2) applies and shall be deemed to have always applied from 1 January 2005.

• (c) Subsections (3) and (7)(b) apply as respects interest to be charged, chargeable, payable or recoverable, as the case may be, for any day or part of a day on or after 1 April 2005 in respect of any unpaid stamp duty or other amount due under the Stamp Duties Consolidation Act 1999 which is due to be paid whether before, on or after 1 April 2005.

• (d) Subsection (4) applies to any unpaid gift tax or inheritance tax, as the case may be, that has not been paid before 1 April 2005 regardless of when that tax becomes due and payable and notwithstanding anything to the contrary in any other enactment.

146 Amendment of section 964 (continuance of pending proceedings) of Taxes Consolidation Act 1997.

146.—Section 964 of the Taxes Consolidation Act 1997 is amended by substituting the following for subsection (1):

• “(1)

  • (a) Notwithstanding subsection (2) of section 966, where the Collector-General duly appointed to collect any income tax has instituted proceedings under section 963 or 966, or continues under this section any proceedings brought under those sections, for the recovery of such tax and, while such proceedings are pending, such Collector-General ceases for any reason to be the Collector-General so appointed to collect such tax, the proceedings may be continued in the name of that Collector-General by any person (in this subsection referred to as the ‘successor’) duly appointed to collect such tax in succession to that Collector-General or any subsequent Collector-General.

  • (b) In any case where paragraph (a) applies, the successor shall inform by notice the person or persons against whom the proceedings concerned are pending that those proceedings are being so continued and on service of such notice, notwithstanding any rule of court, it shall not be necessary for the successor to obtain an order of court substituting him or her for the Collector-General who has instituted or continued the proceedings.

  • (c) Any affidavit or oath to be made by a Collector-General for the purposes of the Judgment Mortgage (Ireland) Act 1850 or the Judgment Mortgage (Ireland) Act 1858 may be made by a successor.”.

147 Miscellaneous technical amendments in relation to tax.

147.—The enactments specified in Schedule 6 are amended to the extent and in the manner specified in that Schedule.

148 Capital Services Redemption Account.

148.—(1) In this section—

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

“fifty-third 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 2005, subsection (3) of section 92 of the Finance Act 2004 shall have effect with the substitution of “€0.00” for “€80,533,677”.

• (3) A sum of €43,454,359 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 2005.

• (4) The fifty-third 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-third additional annuity, not exceeding €33,400,000 in any financial year, may be applied towards defraying the interest on the public debt.

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

149 Care and management of taxes and duties.

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

150 Short title, construction and commencement.

150.—(1) This Act may be cited as the Finance Act 2005.

• (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

• (c) in so far as it relates to capital gains tax, the Capital Gains Tax Acts.

• (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 2004 and may be cited together with those Acts as the Value-Added Tax Acts 1972 to 2005.

• (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,

• (c) capital gains tax, shall be construed together with the Capital Gains 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 2005,

• (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 Consolidation Act 2003 and the enactments amending or extending that Act.

• (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 2005.

• (9) 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.

• (10) 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.

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

• (12) 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 Amendments Consequential on Changes in Personal Tax Credits

As respects the year of assessment 2005 and subsequent years of assessment, the Taxes Consolidation Act 1997 is amended as follows—

• (a) in section 461, by substituting “€3,160” for “€3,040”, in both places where it occurs, and “€1,580” for “€1,520”,

• (b) in section 461A, by substituting “€400” for “€300”,

• (c) in section 462, by substituting “€1,580” for “€1,520” in subsection (2),

• (d) in section 463, by substituting “€2,800”, “€2,300”, “€1,800”, “€1,300” and “€800” respectively for “€2,600”, “€2,100”, “€1,600”, “€1,100” and “€600” in subsection (2),

• (e) in section 465, by substituting “€1,000” for “€500” in subsection (1),

• (f) in section 468, by substituting “€1,000” and “€2,000”, respectively for “€800” and “€1,600” in subsection (2), and

• (g) in section 472, by substituting “€1,270” for “€1,040”, in both places where it occurs, in subsection (4).

SCHEDULE 2 Rates of Tobacco Products Tax

Description of Product	Rate of Tax
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 Repeals and Revocations Relating to Excise Duty on Tobacco Products

PART 1 Repeals

Number and Year	Short title	Extent of repeal
(1)	(2)	(3)
No. 32 of 1977.	Finance (Excise Duty on Tobacco Products) Act 1977.	The whole Act, in so far as it is unrepealed.
No. 9 of 1984.	Finance Act 1984.	Section 70.
No. 8 of 2004.	Finance Act 2004.	Section 45.

PART 2 Revocations

Number and Year	Subject matter or citation	Extent of revocation
(1)	(2)	(3)
S.I. No. 389 of 1977.	Tobacco Products Regulations 1977.	The whole Regulations.
S.I. No. 233 of 1995.	Tobacco Products (Tax Stamp) Regulations 1995.	The whole Regulations.

SCHEDULE 4 Repeals Relating to Excise Law

Session and Chapter or Number and Year	Short Title	Extent of repeal
(1)	(2)	(3)
2 Will. 4, c.16.	Excise Permits Act 1832.	The whole Act.
4 & 5 Vict., c.20.	Excise Management Act 1841.	Section 30.
61 & 62 Vict., c.20.	Finance Act 1898.	Section 4.
61 & 62 Vict., c.46.	Revenue Act 1898.	Sections 14 and 15.
No. 27 of 1924.	Finance Act 1924.	Section 38, in so far as it relates to excise duties.
No. 3 of 2003.	Finance Act 2003.	Section 93.

SCHEDULE 5 Amendment of Provisions Consequential on Section 145

PART 1 Amendments of the Taxes Consolidation Act 1997 consequential to the provisions of section 145(1)

Provision amended	Words to be replaced	Words to be inserted
(1)	(2)	(3)
section 128B(9)(c)	“Subsections (3) and (4) of section 1080”	“Subsections (3) to (5) of section 1080”
section 128B(9)(d)	“subsection (1)(b)”	“subsection (2)(b)”
section 172K(6)(c)	“Subsections (2) to (4) of section 1080”	“Subsections (3) to (5) of section 1080”
section 172K(6)(d)	“subsection (1)(b)”	“subsection (2)(b)”
section 240(3)	“Subsections (2) to (4) of section 1080”	“Subsection (3) to (5) of section 1080”
section 240(4)	“subsection (1)(b)”	“subsection (2)(b)”
section 258(9)(c)	“Subsections (2) to (4) of section 1080”	“Subsections (3) to (5) of section 1080”
section 258(9)(d)	“subsection (1)(b)”	“subsection (2)(b)”
section 503(8)	“income tax charged by an assessment”	“income tax”
section 591(11)(c)	“R is the rate per cent specified in section 1080(1)”	“R is 0.083”
section 730G(7)(c)	“Subsections (2) to (4) of section 1080”	“Subsections (3) to (5) of section 1080”
section 730G(7)(d)	“subsection (1)(b)”	“subsection (2)(b)”
section 739F(7)(c)	“Subsections (2) to (4) of section 1080”	“Subsections (3) to (5) of section 1080”
section 739F(7)(d)	“subsection (1)(b)”	“subsection (2)(b)”
section 784E(6)(c)	“Subsections (2) to (4) of section 1080”	“Subsections (3) to (5) of section 1080”
section 784E(6)(d)	“subsection (1)(b)”	“subsection (2)(b)”
section 848M(6)(c)	“Subsections (2) to (4) of section 1080”	“Subsections (3) to (5) of section 1080”
section 848M(6)(d)	“subsection (1)(b)”	“subsection (2)(b)”
section 1082(3)	“section 1080(1)”	“section 1080(2)”
section 1082(4)	“Subsections (2) to (4) of section 1080”	“Subsections (3) to (5) of section 1080”
section 1082(5)	“section 1080(1)”	“section 1080(2)”
paragraph 1(7)(c) of Schedule 18	“Subsections (2) to (4) of section 1080”	“Subsections (3) to (5) of section 1080”
paragraph 1(7)(d) of Schedule 18	“subsection (1)(b)”	“subsection (2)(b)”

PART 2 Amendments of the Stamp Duties Consolidation Act 1999 consequential on the provisions of section 145(3)

Provision amended	Words to be replaced	Words to be inserted
(1)	(2)	(3)
section 5(4)	“interest on the duty (which shall be recoverable in the same manner as if it were part of the duty) at the rate of 0.0322 per cent for each day or part of a day”	“interest on the duty (which shall be recoverable in the same manner as if it were part of the duty), calculated in accordance with section 159D,”
section 14(1)	“interest on such duty, at the rate of 0.0322 per cent for each day or part of a day”	“interest on such duty, calculated in accordance with section 159D,”
sections 75(3), 87(3) and 87A(4)(a)	“interest on that sum at the rate of 0.0322 per cent for each day or part of a day”	“interest on that sum, calculated in accordance with section 159D,”
sections 79(7) and 80(8)	“interest on the duty, by means of penalty, at the rate of 0.0322 per cent for each day or part of a day”	“interest on the duty, by means of penalty, calculated in accordance with section 159D,”
sections 81(7)(aa) and 81A(11)(aa)	“interest shall be payable on a penalty incurred under paragraph (a) at a rate of 0.0322 per cent for each day or part of a day”	“interest shall be payable on a penalty incurred under paragraph (a), calculated in accordance with section 159D,”
sections 81(7)(b) and 81A(11)(b)	“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”	“interest charged on that amount as may so become payable, calculated in accordance with section 159D,”
sections 91(2)(c)(i), 91A(6)(a), 92(2)(a), 92(2)(a) and 92B(4)(a)	“interest on that amount charged at a rate of 0.0322 per cent for each day or part of a day”	“interest charged on that amount, calculated in accordance with section 159D,”
section 108A(4)	“interest on the penalty at a rate of 0.0322 per cent per day or part of a day”	“interest on the penalty, calculated in accordance with section 159D,”
section 117(3)	“interest shall be payable at the rate of 0.0322 per cent for each day or part of a day for which duty so remains unpaid”	“interest shall be payable, calculated in accordance with section 159D, until the day on which the duty is paid”
section 117(4)	“interest on the additional duty payable under subsection (2)(b)(i) shall be charged at the rate of 0.0322 per cent for each day or part of a day”	“interest shall be chargeable on the additional duty payable under subsection (2(b)(i) and shall be calculated in accordance with section 159D,”
sections 123(7), 123A(7), 124(5)(b) and 125(6)	“interest on the duty at the rate of 0.0322 per cent for each day or part of a day”	“interest on the duty, calculated in accordance with section 159D,”
section 126A(10)	“interest on the stamp duty at the rate of 0.0322 per cent per day or part of a day”	“interest on the stamp duty, calculated in accordance with section 159D”

SCHEDULE 6 Miscellaneous Technical Amendments in Relation to Tax

• (a) in section 4(1), in paragraph (a) of the definition of “company” by substituting “the Health Service Executive” for “a health board”,

• (b) in section 127(2)(i)(I) by substituting “Schedule E” for “the Schedule E”,

• (c) in section 214(2)(b) by substituting “the Health Service Executive” for “a health board”,

• (d) in section 267J by substituting the following for subsection (2):

• “(2) Where by virtue of subsection (1) 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 subsection as if that subsection were arrangements providing that the tax so payable shall be allowed as a credit against tax payable in the State.”,

• (e) in section 268—

• (i) in subsection (1), in paragraph (i) of the definition of “industrial building or structure” by substituting “the Health Service Executive” for “the health board in whose functional area the convalescent home is situated,”,

• (ii) in subsection (2A)—

• (I) by deleting the definition of “health board”, and

• (II) in the definition of “qualifying hospital”—

• (A) in paragraph (g) by substituting “the Health Service Executive” for “the health board in whose functional area it is situated”,

• (B) in paragraph (g)(i) by substituting “the Health Service Executive” for “the health board” in each place where it occurs, and

• (C) in paragraph (h) by substituting “the Health Service Executive” for “that health board”,

• (iii) in subsection (2B)—

• (I) in paragraph (e)—

• (A) by substituting “the Health Service Executive” for “the health board in whose functional area it is situated”, and

• (B) in subparagraph (i) by substituting “the Health Service Executive” for “the health board” in both places where it occurs,

and

• (II) in paragraph (f) by substituting “the Health Service Executive” for “that health board”,

and

• (iv) in subsection (3A)(c)(iv)—

• (I) by substituting “the Health Service Executive” for “the health board in whose functional area the units are situated”, and

• (II) by substituting “the Health Service Executive” for “that health board” in both places where it occurs,

• (f) in section 397(3) by substituting “section 243 or 243A” for “section 243”,

• (g) in section 404(4)(c)(ii)—

• (i) in the construction of M by substituting “days” for “months”, and

• (ii) in the construction of R by substituting “is 0.0273.” for “is the rate per cent specified in section 1080(1).”,

• (h) in section 469(1)—

• (i) in the definition of “hospital”

• (I) by substituting “the Health Service Executive” for “a health board” in both places where it occurs, and

• (II) by substituting “Health Acts 1947 to 2004” for “Health Acts, 1947 to 1996” in both places where it occurs,

and

• (ii) in paragraph (c) of the definition of “practitioner” by substituting “practice” for “practise”,

• (i) in section 556(6)(a) by substituting “in each subsequent year” for “in in each subsequent year”,

• (j) in section 616(7) in paragraph (b) of the definition of “relevant Member State” by substituting “section 826(1)(a)” for “section 826”,

• (k) in section 730K(5)(a) by substituting “section 104 of the Capital Acquisitions Tax Consolidation Act 2003” for “section 63 of the Finance Act, 1985”,

• (l) in section 787A in paragraph (a) of the definition of “employee”—

• (i) by substituting “the Health Service Executive” for “health board”, and

• (ii) by deleting “board or committee” and substituting “the Executive or the committee”,

• (m) in section 825A(3)(b) by substituting “section 826(1)(a)” for “section 826”,

• (n) in section 888(2)(e) by substituting “who, or the Health Service Executive or any local authority” for “who, or any health board, local authority”,

• (o) in section 942 by deleting subsections (7) and (10), and

• (p) in Schedule 29—

• (i) in column 2—

• (I) by deleting “section 893(2)”, and

• (II) by inserting “section 896” after “section 894(3)”,

and

• (ii) in column 3 by substituting “section 896” for “section 893(3)”.

• (i) subparagraphs (a) to (c), (e), (h) to (j) and (l) to (p) have effect as on and from the passing of this Act,

• (ii) subparagraph (f) applies as respects accounting periods ending on or after 3 February 2005,

• (iii) subparagraph (g) applies and comes into effect as on and from 3 February 2005,

• (iv) subparagraph (k) is deemed to have come into force as on and from 21 February 2003, and

• (v) subparagraph (d) is deemed to have come into force as on and from 1 January 2004.

• (b) Paragraph 2 is deemed to have come into force and have taken effect as on and from 21 February 2003.

• (c) Paragraph 3 has effect as on and from the passing of this Act.

Footnotes