Finance Act 2016

Type Act

Publication 2016-12-25

State In force

Source Irish Statute Book

articles 59

(I) such asset was held by the IREF, or an investment undertaking of which the IREF is a sub-fund, for a period of at least 5 years from the date on which it was acquired, and

(II) the disposal of such asset would be a disposal of a chargeable asset for the purposes of capital gains tax or corporation tax on chargeable gains and would otherwise form part of relevant profits of the IREF which are not chargeable to tax under section 739C,

and

(ii) any unrealised profits or gains as shown in the income statement of the IREF in relation to those assets where the disposal of such asset would be a disposal of a chargeable asset for the purposes of capital gains tax or corporation tax on chargeable gains and would otherwise form part of relevant profits of the IREF which are not chargeable to tax under section 739C,

and where such asset was acquired through a transaction in respect of which relief was availed of under section 615 or 617, excluded profits shall be calculated with reference to the market value of the asset on its acquisition,

(b) in relation to shares, within the meaning of paragraph (c) of the definition of ‘IREF assets’, any distribution made in relation to those shares, and

(c) in relation to shares, within the meaning of paragraph (b) of the definition of ‘IREF assets’, any profits or gains other than property income dividends in relation to those shares;

‘IREF profits’ means the profits and gains of an IREF business as shown in the income statement of the IREF, any amount of the profits and gains realised on the disposal of an IREF asset (other than those referred to in paragraphs (b) to (e) of the definition of ‘IREF assets’) not otherwise shown in the income statement and excluding IREF excluded profits;

‘IREF taxable amount’, in relation to an IREF taxable event and a unit holder, means an amount calculated in accordance with section 739L;

‘IREF taxable event’ in respect of a unit holder means—

(a) the making of a relevant payment,

(b) the cancellation, redemption or repurchase of units from a unit holder, including on a liquidation,

(c) any exchange by a unit holder of units in a sub-fund of an investment undertaking for units in another sub-fund of that investment undertaking,

(d) the issuing of units as paid-up, otherwise than by the receipt of new consideration,

(e) an IREF ceasing to be an IREF including on it ceasing to be an investment undertaking or on it ceasing to have 25 per cent of its value derived from IREF assets,

(f) the disposal of a unit by a unit holder, other than in circumstances that would give rise to an IREF taxable event under paragraph (b) or (c), or

(g) the sale or transfer of the right to receive any of the accrued IREF profit without the sale or transfer of the unit to which the accrued IREF profit relates or where the accrued IREF profit in respect of the unit becomes receivable otherwise than by the unit holder;

‘IREF withholding tax’, in relation to an IREF taxable event, means a sum representing income tax at a rate of 20 per cent on the IREF taxable amount;

‘purchased IREF profits’ means the IREF profits, including any retained IREF profits, which have arisen and accrued to a unit prior to that unit being acquired by the unit holder;

‘relevant payment’, means a payment including a distribution, whether in cash or non-cash, made to a unit holder by an IREF by reason of the rights conferred to the unit holder as a result of holding a unit or units in the IREF, other than a payment made in respect of the cancellation, redemption or repurchase of a unit;

‘retained IREF profits’ means the portion of the retained profits of the investment undertaking attributable to the IREF profits, and where those profits arose in an accounting period which commenced prior to 1 January 2017 or 20 October 2016, as the case may be, those profits shall be the profits which would be IREF profits if they arose in an accounting period which commenced on or after that date;

‘specified person’ means a unit holder in respect of which a gain is not treated as arising to an investment undertaking on the happening of a chargeable event under subsection (6) (other than paragraphs (cc), (e), and (kb)), (7), (7A) (as it applies to a declaration made under subsection (6) or (7)), (7B) (as it applies to a declaration made under subsection (7) or (9)), (8), (8A), (8D), (8E), (9) or (9A) of section 739D, but shall not, subject to section 739M, include—

(a) a fund approved under section 774, 784(4) or 785(5), a PRSA within the meaning of section 787A, or a person exempt from income tax under section 790B,

(b) an investment undertaking,

(d) a person who is exempt from—

(i) income tax under Schedule D by virtue of section 207(1)(b), or

(ii) corporation tax by virtue of section 207(1)(b) as it applies for the purposes of corporation tax under section 76(6),

(e) a credit union,

(f) a scheme, undertaking or company equivalent to those referred to in paragraphs (a) to (c), authorised by a Member State or an EEA state and subject to supervisory and regulatory arrangements at least equivalent to those applied to those schemes, undertakings or companies, as the case may be, in the State, or

(g) a qualifying company, within the meaning of section 110,

where the IREF is in possession of a valid declaration, in accordance with Schedule 2C, immediately before the IREF taxable event;

‘TIN’ has the meaning assigned to it in section 891F and includes a tax reference number as defined in section 891B;

‘umbrella scheme’ has the meaning given to it in section 739B.

(2) In calculating the portion of the value of assets of an investment undertaking or sub-fund attributable to IREF assets for the purposes of determining whether or not an investment undertaking or sub-fund is an IREF—

(a) account shall not be taken of any arrangement that—

(i) involves a transfer of assets, other than IREF assets, from a person connected with—

(I) the investment undertaking or sub-fund, as the case may be, or

(II) a unit holder in the investment undertaking or sub-fund,

and

(ii) the main purpose or one of the main purposes of which is the avoidance of tax under this Chapter,

and

(b) regard shall be had to the gross value of the assets of which the IREF asset is part.

Calculating the IREF taxable amount

739L. The IREF taxable amount in relation to an IREF taxable event shall be calculated as:

A x B-D

where—

A is the portion of the IREF taxable event which is attributable to the retained profits of the IREF,

B is the retained IREF profits,

C is the retained profits of the IREF, and

D is the purchased IREF profits not previously distributed by the IREF.

Anti-avoidance: multiple funds

739M. (1) In this Chapter—

‘personal portfolio IREF’ means an IREF under the terms of which some or all of the IREF assets or IREF business may be, or was, selected or influenced by—

(a) the unit holder,

(b) a person acting on behalf of the unit holder,

(d) a person connected with a person acting on behalf of the unit holder,

(e) the unit holder and a person connected with the unit holder, or

(f) a person acting on behalf of both the unit holder and a person connected with the unit holder.

(2) For the purposes of subsection (1) and without prejudice to the application of that subsection, the terms of an IREF shall be treated as permitting the selection referred to in that subsection where—

(a) the terms of that IREF or any other agreement between any person referred to in that subsection and that IREF—

(i) allow the exercise of an option by any person referred to in that subsection to make the selection referred to in that subsection,

(ii) A gives that IREF discretion to offer any person referred to in that subsection the right to make the selection referred to in that subsection, or

(iii) allow any of the persons referred to in that subsection the right to request, subject to the agreement of that IREF, a change in those terms such that the selection referred to in that subsection may be made by any of those persons,

(b) the unit holder or any person connected with the unit holder has or had the option of requiring that IREF to appoint an investment advisor (regardless how such a person is described) in relation to the selection of IREF assets or business, or the conduct of the IREF business.

(3) A scheme, undertaking or company, as referred to in paragraphs (a) to (c) or (f) of the definition of ‘specified person’ in section 739K, shall be a specified person where—

(a) subject to section 739N, the IREF is a personal portfolio IREF in respect of the unit holder, or

(b) (i) that scheme, undertaking or company, as the case may be, would, if it was an IREF and if the holding of the units in the IREF was part of its IREF business, be regarded as a personal portfolio IREF in respect of any of its unit holders, and

(ii) it would be reasonable to consider that the investment in the IREF by the scheme, undertaking or company was part of a scheme or arrangement the main purpose, or one of the main purposes, of which was the avoidance of tax under this Chapter.

Anti-avoidance: multiple funds further measures

739N. (1) Where—

(a) an IREF would otherwise be a personal portfolio IREF in accordance with section 739M(3)(a), and

(b) the scheme, undertaking or company, as the case may be, in respect of which it is a personal portfolio IREF would not be a personal portfolio IREF under section 739M(3)(b)(i),

then the IREF shall not be considered to be a personal portfolio IREF in respect of the unit holder concerned.

(2) Where an IREF would only be a personal portfolio IREF of a unit holder in accordance with section 739M(3)(a) because of a scheme of amalgamation to which section 739D(8C) applied, the IREF shall not be considered to be a personal portfolio IREF in respect of the unit holder concerned.

(3) Where an IREF would be a personal portfolio IREF of a unit holder in accordance with section 739M(3)(a) solely because a person connected with the unit holder may select or influence the IREF assets or IREF business where that connected person can not—

(a) be influenced by that unit holder in the exercise of their duties, or

(b) show any preference, or give any consideration, to that unit holder over and above any other unit holder,

then that IREF shall not be considered to be a personal portfolio IREF in respect of the unit holder concerned.

Tax arising on IREF taxable event

739O. (1) In this section a ‘holder of excessive rights’ means a person who is beneficially entitled, directly or indirectly, to at least 10 per cent of the units in an IREF.

(2) Notwithstanding any other provision of the Tax Acts—

(a) for the purposes of affording relief under an arrangement made with the government of a territory outside the State having the force of law under the procedures set out in section 826(1), the IREF taxable amount in respect of an IREF taxable event and a unit holder—

(i) who is a holder of excessive rights, is income from immovable property, and

(ii) who is not a holder of excessive rights, shall be treated as a dividend,

(b) in respect of a unit holder, the IREF taxable amount shall be chargeable to income tax under Case V of Schedule D and shall be treated as income—

(i) arising in the year of assessment in which the IREF taxable event occurs, and

(ii) against which no loss, deficit, expense or allowance may be set off,

(c) to the extent to which profits or gains of a basis period for a year of assessment consist of profits or gains to which paragraph (b) applies, those profits or gains—

(i) shall be chargeable to income tax for that year, subject to section 739Q, at the rate of 20 per cent, and

(ii) shall not be reckoned in computing total income for that year for the purposes of the Income Tax Acts,

and

(d) the provisions of section 188, and the reductions specified in Part 2 of the Table to section 458 shall not apply as regards income tax so charged.

Withholding tax arising on IREF taxable event

739P. (1) On the happening of an event mentioned in paragraphs (a) to (e) of the definition of ‘IREF taxable event’ in respect of a specified person—

(a) the IREF shall deduct IREF withholding tax out of the IREF taxable amount,

(b) the specified person shall allow such deduction referred to in paragraph (a) on the receipt of the residue of the IREF taxable amount, and

(c) the IREF shall be acquitted and discharged of so much money as is represented by the deduction referred to in paragraph (a) as if that amount of money had actually been paid to the specified person.

(2) On the happening of an event mentioned in paragraph (d) of the definition of ‘IREF taxable event’ in respect of a specified person, to satisfy the requirements of paragraphs (a) and (b) of subsection (1), the IREF shall reduce the amount of the additional units to be issued to the specified person by such amount as will secure that the value at that time of the additional units issued to the specified person does not exceed an amount equal to the amount which the person would have received, after deduction of IREF withholding tax, if the person had received the value of the IREF taxable event in cash instead of in the form of additional units in the IREF.

(3) Where the IREF taxable event consists of a non-cash amount, the IREF—

(a) shall be liable to pay to the Collector-General an amount (which shall be treated for the purposes of this Chapter as if it were a deduction of IREF withholding tax in relation to an IREF taxable event) equal to the IREF withholding tax which, but for this subsection, would have been required to be deducted from the amount of the IREF taxable amount,

(b) shall be liable to pay that amount in the same manner in all respects as if it were the IREF withholding tax which, but for this subsection, would have been required to be deducted from the IREF taxable amount, and

(c) shall be entitled to recover a sum equal to that amount from the specified person as a simple contract debt in any court of competent jurisdiction.

(4) (a) Subject to paragraph (b), the amount of IREF withholding tax deducted in respect of a unit holder in accordance with this section shall be treated as a payment on account of the income tax chargeable on that unit holder on that IREF taxable event for that year of assessment and where that payment on account equals the income tax payable under section 739O, that unit holder shall not, in respect of the IREF taxable event, be regarded as a chargeable person within the meaning of Part 41A.

(b) Where IREF withholding tax is paid in accordance with subsection (3), the unit holder shall not be entitled to treat the IREF withholding tax as a payment on account until such time as the debt to the IREF is repaid.

(5) Other than as provided for in section 739Q, no repayment of any IREF withholding tax shall be made to any person receiving or entitled to the IREF taxable amount.

Repayment of IREF withholding tax

739Q. (1) In this section, ‘relevant person’ means a specified person, who during an accounting period was subject to withholding tax on an IREF taxable event and would but for section 739P be entitled to a repayment of tax.

(2) Notwithstanding section 739P(5) and subject to section 739T, repayment of withholding tax in respect of an IREF taxable event shall be made to a relevant person to the extent provided for in an arrangement made with the government of a territory outside the State having the force of law under the procedures set out in section 826(1) and the rate of tax specified in section 739O(2)(c) shall be the rate applicable pursuant to the relevant arrangement.

(3) Notwithstanding section 739P(5), where a scheme, undertaking or company, as referred to in paragraphs (a) to (c) or (f) of the definition of ‘specified person’, can prove—

(a) that it has indirectly invested in units of an IREF,

(b) that the IREF would not be regarded as a personal portfolio IREF of that scheme, undertaking or company, and

(c) that an amount of withholding tax was operated on an IREF taxable event to which it is indirectly entitled which is not otherwise repayable,

then that scheme, undertaking or company, as the case may be, shall be entitled to a refund of withholding tax as if the units concerned were directly held and to make a claim to the Revenue Commissioners for repayment of that withholding tax in the form prescribed by the Revenue Commissioners and the rate of tax specified in section 739O(2)(c) shall be reduced accordingly.

(4) For the purposes of section 865(2) the return made by the IREF under section 739R shall be deemed to be a return made by the unit holder for the purposes of an assessment to tax.

Returns, payment and collection of IREF withholding tax

739R. (1) Notwithstanding any other provision of the Tax Acts, this section shall apply for the purposes of regulating the time and manner in which IREF withholding tax shall be accounted for and paid.

(2) An IREF shall for each accounting period make to the Collector-General a return, in accordance with subsections (3) and (4), of the IREF withholding tax in connection with an accounting period—

(a) which ends on or before 30 June in a financial year, within 30 days of 31 December of that year, and

(b) which ends between 1 July and 31 December, within 30 days of 30 June of the following year.

(3) The IREF withholding tax which is required to be included in a return referred to in subsection (2) shall be due at the time by which the return is to be made and shall be paid by the IREF to the Collector-General and subsections (3) to (9) of section 739F shall apply to IREF withholding tax, with any required modifications, as they apply to the appropriate tax.

(4) The return referred to in subsection (2) shall contain the following details:

(a) the name and tax reference number of the IREF in respect of which the IREF taxable event occurred;

(b) the name, address, TIN and unit holding of each unit holder in respect of whom the IREF taxable event happened;

(d) the amount of the IREF taxable event for each unit holder;

(e) the amount of IREF withholding tax (if any) in relation to the IREF taxable event deducted by the IREF in respect of each unit holder.

Statement to be given to recipients on the making of an IREF relevant payment

739S. (1) Every IREF shall, at the time of the IREF taxable event (within the meaning of paragraphs (a) to (e) of the definition of ‘IREF taxable event’), give the unit holder a statement in writing, or by means of electronic communications, specifying the following details:

(a) the name and address of the IREF;

(b) the name and address of the unit holder;

(d) the IREF taxable amount;

(e) the amount of the IREF withholding tax deducted in relation to the IREF taxable event.

(2) Section 152(2) shall apply to the failure by an IREF to comply with this section, with any necessary modifications.

Deduction from consideration on the disposal of certain units

739T. (1) This section—

(a) applies on the happening of an event specified in paragraph (f) or (g) of the definition of ‘IREF taxable event’, and

(b) shall not apply where the amount or value of any consideration payable in relation to the happening of such an IREF taxable event does not exceed the sum of €500,000; but where the taxable event involves a disposal, sale or transfer by the unit holder in parts—

(i) to the same person, or

(ii) to persons who are acting in concert or who are connected persons,

whether on the same or different occasions, the several disposals, sales or transfers shall, for the purposes of this paragraph, be treated as a single disposal, sale or transfer.

(2) On payment of any consideration in relation to the happening of an IREF taxable event to which this section applies—

(a) the person by or through whom any such payment is made shall deduct from that payment a sum representing an amount of income tax equal to 20 per cent of that payment,

(b) the person to whom the payment is made shall allow such deduction on receipt of the residue of the payment, and

(c) the person making the deduction shall, on proof of payment to the Revenue Commissioners of the amount so deducted, be acquitted and discharged of so much money as is represented by the deduction as if that sum had been actually paid to the person making the disposal.

(3) (a) Notwithstanding any other provision of the Tax Acts, this subsection shall apply for the purposes of regulating the time and manner in which the withholding tax deducted under this section shall be accounted for and paid.

(b) The person who was required to deduct the withholding tax under this section shall, within 30 days of the date of the IREF taxable event, deliver to the Revenue Commissioners an account of the IREF taxable event and of the amount deducted.

(i) the name and tax reference number of the IREF in respect of which the IREF taxable event occurred;

(ii) the name, address, TIN and unit holding of the unit holder in respect of whom the IREF taxable event occurred;

(iii) the date on which the IREF taxable event occurred;

(iv) the amount of the consideration paid or payable to the unit holder;

(v) the amount of withholding tax deducted under this section.

(d) Income tax which by virtue of this section is payable by a person shall—

(i) be payable by that person in addition to any income tax which by virtue of any other provision of the Tax Acts is payable by that person,

(ii) be due within 30 days of the IREF taxable event, and

(iii) be payable by that person without the making of an assessment.

(e) Where, in relation to any payment of withholding tax referred to in paragraph (b), any person has made default in delivering an account required by this section, or where the Revenue officer is not satisfied with the account, the officer may estimate the amount of the payment to the best of his or her judgment and, notwithstanding section 18, may assess and charge that person to income tax for the year of assessment in which the payment was made on the amount so estimated at the rate of 20 per cent.

(4) The amount of withholding tax deducted in respect of a unit holder in accordance with this section shall be treated as a payment on account of the income tax chargeable on that unit holder on that IREF taxable event for that year of assessment.

(5) Repayment of withholding tax deducted in respect of a unit holder in accordance with this section in respect of an IREF taxable event shall be made to a relevant person, within the meaning of section 739Q, to the extent provided for in an arrangement made with the government of a territory outside the State having the force of law under the procedures set out in section 826(1) and the rate of tax in section 739O(2)(c) shall be the rate applicable pursuant to the relevant arrangement.

(6) A claim for repayment of any withholding tax deducted under this section which is in excess of the income tax chargeable on the IREF taxable event under section 739O shall be made by the unit holder in a return, made in accordance with Part 41A, and no other repayment of any amount of such withholding tax shall be made.

Retention and examination of documentation

739U. (1) An IREF shall keep and retain declarations made to it in accordance with Schedule 2C for a period of 6 years from the time the unit holder of the units in respect of which the declaration was made ceases to be such a unit holder.

(2) An IREF shall, on being so required by notice in writing given to the IREF by the Revenue Commissioners, make available to the Revenue Commissioners, within the time specified in the notice—

(a) all declarations, certifications or notifications which have been made or, as the case may be, given to the IREF in accordance with Schedule 2C, or

(b) such class or classes of such declarations, certificates or notifications as may be specified in the notice.

(3) The Revenue Commissioners may examine or take extracts from or copies of any declarations, certificates or notifications made available to the Revenue Commissioners under subsection (2).

Transfer of IREF business to a company

739V. (1) In this section—

‘the Acts’ means the Tax Acts and the Capital Gains Tax Acts;

‘specified company’ means a company that is formed under the laws of, and is registered in, a Member State or an EEA state;

‘transferred business’ means the IREF business, the IREF assets and any assets ancillary to the IREF business referred to in subsection (2)(a)(i) or (ii), as the case may be.

(2) This section applies—

(a) where an investment undertaking—

(i) transfers the whole of its IREF business and its IREF assets, including any assets ancillary to the IREF business, or

(ii) which carries out activities which would be regarded as dealing in or developing land and other IREF business, transfers the part of its IREF business and its IREF assets, including any assets ancillary to the IREF business, that relate to dealing in or developing land,

to a specified company which is within the charge to corporation tax in respect of the transferred business and the charge to capital gains tax in respect of any IREF assets the disposal of which would not be within the charge to corporation tax,

(b) (i) where shares in the specified company are issued to the unit holders in the investment undertaking in respect of and in proportion to (or as nearly as may be in proportion to) their unit holdings in the investment undertaking,

(ii) all of the shares issued are ordinary shares with equal rights, and

(iii) the investment undertaking receives no part of the consideration for the transfer referred to in paragraph (a) (otherwise than by the specified company taking over the whole or part of the liabilities of its business),

(c) where upon completion of the transfer referred to in paragraph (a), the investment undertaking has no assets that relate to the transferred business,

(d) where the shares concerned are issued on or before 1 July 2017, and

(e) where the investment undertaking does not carry on any business similar to the transferred business after the date of such transfer referred to in paragraph (a).

(3) Subject to subsection (4), for the purpose of the Acts, in respect of a transfer to which this section applies—

(a) the investment undertaking shall be deemed to have disposed of all assets in use for the purposes of the transferred business for the value at which they are carried in the accounts,

(b) the specified company—

(i) shall be deemed, as if it had been in existence since the commencement of the transferred business by the investment undertaking, in relation to the transferred business up to the date of transfer—

(I) to have carried out all activities, incurred all expenses, acquired all assets, borrowed all monies, and monies borrowed at or about the time of the purchase of premises shall be treated as having been employed in the purchase of those premises, and earned all profits and incurred all losses of the investment undertaking, and

(II) to have made all such claims for any allowances, deductions and reliefs as it would have been entitled to had it carried on the transferred business since its commencement,

and shall, after the date of transfer, be subject to tax under the Acts as if it had carried out all transactions carried out by the investment undertaking prior to the transfer, and

(ii) for the purpose of the Capital Gains Tax Acts shall be treated as if any assets included in the transfer were acquired by the specified company on the date of transfer for consideration equal to the value of the assets in the accounts of the investment undertaking,

and

(c) the unit holder shall not be treated as having disposed of the units or as having acquired the shares or any part of them, but the units (taken as a single asset) and the shares (taken as a single asset) shall be treated as the same asset acquired as the units were acquired.

(4) For the purposes of this Chapter, the transfer shall constitute an IREF taxable event but the investment undertaking, a unit holder and the specified company may jointly elect that the tax due under sections 739O and 739P becomes due and payable on the earlier of—

(a) a date not later than 60 days after the disposal of the shares in the specified company,

(b) the tenth anniversary of the date of the transfer,

(d) the specified company ceasing to be resident, under the law of a Member State or an EEA state, in that territory for the purposes of tax,

and the specified company shall, not later than 21 days after the date of the end of each of the calendar years which follow the year in which the transfer occurs, deliver a statement to the Revenue Commissioners, in the prescribed form, providing such information as may be required for the purposes of this subsection.

(5) Any instrument giving effect to a transfer to which this section applies shall not be chargeable to stamp duty under the Stamp Duties Consolidation Act 1999.

Transfer of IREF business to a REIT

739W. (1) In this section—

‘property rental business’ has the meaning assigned to it by Part 25A;

‘qualifying REIT’ means a company which was not a REIT prior to giving the notice referred to in subsection (2)(a);

‘REIT’ has the meaning assigned to it in Part 25A;

‘transferred business’ means the IREF business, the IREF assets and any assets ancillary to the IREF business referred to in subsection (2)(b).

(2) This section applies—

(a) where notice is given to the Revenue Commissioners under section 705E specifying a date not later than 31 December 2017 in respect of a company which is to carry on the property rental business previously carried on as part of the IREF property business of an IREF,

(b) where that IREF transfers the whole of its property rental business to the qualifying REIT referred to in paragraph (a),

(c) (i) where ordinary shares in the qualifying REIT are issued to the unit holders in the IREF in respect of and in proportion to (or as nearly as may be in proportion to) their unit holdings in the IREF, and

(ii) where the IREF receives no part of the consideration for the transfer referred to in paragraph (b) (otherwise than by the qualifying REIT taking over the whole or part of the liabilities of the property rental business transferred),

(d) where the shares concerned are issued on or before 31 December 2017, and

(e) where the IREF does not carry on any business similar to the transferred business after the date of transfer referred to in paragraph (b).

(3) In respect of a transfer to which this section applies, for the purpose of the Capital Gains Tax Acts the unit holder shall not be treated as having disposed of the units or as having acquired the shares or any part of them, but the units (taken as a single asset) and the shares (taken as a single asset) shall be treated as the same asset acquired as the units were acquired.

(4) For the purposes of Part 25A and Chapters 1A and 1B of Part 27—

(a) the IREF shall be treated as having disposed of, and

(b) the qualifying REIT shall, notwithstanding section 705L(1), be treated as having acquired,

all assets and liabilities of the transferred business for consideration equal to the value of those assets and liabilities in the accounts of the investment undertaking.

(5) For the purposes of this Chapter, the transfer referred to in subsection (2) shall constitute an IREF taxable event but the IREF, the unit holder and the qualifying REIT may jointly elect that the tax due under sections 739O and 739P becomes due and payable on the earlier of—

(a) a date not later than 60 days after the disposal of the shares in the qualifying REIT,

(b) the tenth anniversary of the date of the transfer,

(d) the company ceasing to be a REIT,

and the qualifying REIT shall, not later than 21 days after the date of the end of each of the calendar years which follow the year in which the transfer occurs, deliver a statement to the Revenue Commissioners, in the prescribed form, providing such information as may be required for the purposes of this subsection.

(6) Any instrument giving effect to a transfer to which this section applies shall not be chargeable to stamp duty under the Stamp Duties Consolidation Act 1999.

Application of this Chapter

739X. This Chapter shall apply to—

(a) accounting periods commencing on or after 1 January 2017, or

(b) where an investment undertaking’s immediately preceding accounting period ended on or after 31 December 2015 and a decision was made after 20 October 2016 to change the accounting period such that paragraph (a) would not apply, that accounting period commencing on or after 20 October 2016.”,

and

“SCHEDULE 2C

Sections 739B, 739K and 739U

Irish Real Estate Funds: Declarations

Interpretation

In this Schedule—

‘appropriate person’, in relation to a pension scheme, means—

(a) in the case of an exempt approved scheme (within the meaning of section 774), the administrator (within the meaning of section 770) of the scheme,

(b) in the case of a retirement annuity contract to which section 784 or 785 applies, the person lawfully carrying on in the State the business of granting annuities on human life with whom the contract is made, and

‘IREF declaration’, in relation to a person means the declaration that that person would be required to make under section 739K and Schedule 2C.

Declaration of pension scheme

The declaration referred to in section 739K, in respect of a pension scheme referred to in paragraph (a) or (f) of the definition of ‘specified person’, is a declaration in writing to the IREF which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(d) declares that, at the time when the declaration is made, the person entitled to the units is a pension scheme,

(e) contains the name, address and TIN of the pension scheme,

(f) contains a certificate by the appropriate person in relation to the pension scheme that, to the best of that person’s knowledge and belief, the declaration made in accordance with subparagraph (d) and the information furnished in accordance with subparagraph (e) are true and correct,

(g) contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M,

(h) attaches, where the scheme is one to which paragraph (f) of the definition of ‘specified person’ applies, supporting documentation evidencing equivalence,

(i) contains an undertaking by the declarer that if the scheme becomes a specified person, the declarer will notify the IREF accordingly, and

(j) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.

Declaration of PRSA Administrator

The declaration referred to in section 739K, in respect of a PRSA referred to in paragraph (a) or (f) of the definition of ‘specified person’, is a declaration in writing to the IREF which—

(a) is made by a PRSA administrator (in this paragraph referred to as the ‘declarer’) in respect of units which are assets in a PRSA,

(b) is signed by the declarer,

(d) declares that, at the time when the declaration is made, the units in respect of which the declaration is made—

(i) are assets of a PRSA, and

(ii) are managed by the declarer for the individual who is beneficially entitled to the units,

(e) contains the name, address and TIN of the individual referred to in subparagraph (d),

(f) contains an undertaking by the declarer that if the units cease to be assets of the PRSA, including a case where the units are transferred to another PRSA, the declarer will notify the IREF accordingly,

(g) contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M,

(h) attaches, where the PRSA is one to which paragraph (f) of the definition of ‘specified person’ applies, supporting documentation evidencing equivalence,

(i) contains an undertaking by the declarer that if the PRSA becomes a specified person, the declarer will notify the IREF accordingly, and

(j) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.

Declaration of investment undertaking

The declaration referred to in section 739K, in respect of an investment undertaking referred to in paragraph (b) or (f) of the definition of ‘specified person’, is a declaration in writing to the IREF which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(d) declares that, at the time the declaration is made, the person entitled to the units is an investment undertaking,

(e) contains the name, address and TIN of the investment undertaking,

(f) contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M,

(g) attaches, where the undertaking is one to which paragraph (f) of the definition of ‘specified person’ applies, supporting documentation evidencing equivalence,

(h) contains an undertaking by the declarer that if the investment undertaking becomes a specified person, the declarer will notify the IREF accordingly, and

(i) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.

Declaration of company carrying on life business

The declaration referred to in section 739K, in respect of a life assurance company referred to in paragraph (c) or (f) of the definition of ‘specified person’, is a declaration in writing to the IREF which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(d) declares that, at the time when the declaration is made, the person entitled to the units is a company carrying on life business within the meaning of Part 26,

(e) contains the name, address and TIN of the company,

(f) contains a certificate by the declarer stating whether or not the unit holder is a specified person after the application of section 739M,

(g) attaches, where the company is one to which paragraph (f) of the definition of ‘specified person’ applies, supporting documentation evidencing equivalence,

(h) contains an undertaking by the declarer that if the company becomes a specified person, the declarer will notify the IREF accordingly, and

(i) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.

Declaration of Charity

The declaration referred to in section 739K, in respect of a charity referred to in paragraph (d) of the definition of ‘specified person’, is a declaration in writing to the IREF which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) entitled to the units in respect of which the undertaking is made,

(b) is signed by the declarer,

(d) declares that, at the time when the declaration is made, the person entitled to the units is a person who—

(i) is exempt from income tax under schedule D by virtue of section 207(1)(b), or

(ii) is exempt from corporation tax by virtue of section 207(1)(b) as it applies for the purposes of corporation tax under section 76(6),

(e) contains the name, address and TIN of that person,

(f) contains a statement that at the time when the declaration is made the units in respect of which the declaration is made are held for charitable purposes only and—

(i) form part of the assets of a body of persons or trust treated by the Revenue Commissioners as a body or trust established for charitable purposes only, or

(ii) are, according to the rules or regulations established by statute, charter, decree, deed of trust or will, held for charitable purposes only and are so treated by the Revenue Commissioners,

(g) contains an undertaking by the declarer that if the person mentioned in subparagraph (d) ceases to be a person referred to in subparagraph (d), the declarer will notify the IREF accordingly, and

(h) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.

Declaration of Credit Unions

The declaration referred to in section 739K, in respect of a credit union referred to in paragraph (e) of the definition of ‘specified person’, is a declaration in writing to the IREF which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) who is entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(d) contains the name, address and TIN of the declarer,

(e) declares that at the time when the declaration is made the person entitled to the units is a credit union, and

(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.

Declaration of qualifying company

The declaration referred to in section 739K, in respect of a qualifying company referred to in paragraph (g) of the definition of ‘specified person’, is a declaration in writing to the IREF which—

(a) is made by the person (in this paragraph referred to as the ‘declarer’) who is entitled to the units in respect of which the declaration is made,

(b) is signed by the declarer,

(d) contains the name, address and TIN of the declarer,

(e) declares that at the time when the declaration is made the person entitled to the units is a qualifying company, and

(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1B of Part 27.”.

Chapter 5 Corporation Tax

24 Amendment of section 891H of Principal Act (country-by-country reporting)

24. (1) Section 891H of the Principal Act is amended—

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

“(1) In this section—

‘constituent entity’, ‘MNE group’, ‘qualifying competent authority agreement’, ‘surrogate parent entity’, ‘systemic failure’ and ‘ultimate parent entity’ have the meanings given to them respectively by Article 1 of the OECD model legislation;

‘competent authority’ means a competent authority for the purposes of a qualifying competent authority agreement;

‘country-by-country report’, in relation to an MNE group, means a report that contains the information set out in subsection (4);

‘domestic constituent entity’ means a constituent entity, that is resident for the purposes of tax in the State, but does not include—

(a) an ultimate parent entity,

(b) a surrogate parent entity, or

‘equivalent country-by-country report’ means a country-by-country report but only to the extent the information required to be included in that report is within the possession of, or is obtained or acquired by, a domestic constituent entity;

‘EU designated entity’ means a constituent entity of an MNE group, not being an ultimate parent entity or surrogate parent entity, that—

(a) is resident in a Member State for tax purposes, and

(b) has been designated as an entity by that MNE group to provide a country-by-country report on behalf of all constituent entities of the MNE group resident for tax purposes in a Member State;

‘fiscal year’ means an annual accounting period, or any such shorter accounting period, with respect to which the ultimate parent entity of the MNE group prepares its financial statements;

‘income tax’ means income tax or corporation tax or any foreign tax that corresponds to income tax or corporation tax in the State;

‘OECD’ means the Organisation for Economic Co-operation and Development;

‘OECD model legislation’ means the Model Legislation Related to Country-by-Country Reporting contained in Annex IV to Chapter V of the OECD Report of 2015;

‘OECD Report of 2015’ means the ‘Transfer Pricing Documentation and Country-by-Country Reporting, Action 13 - 2015 Final Report’ published by the OECD on 5 October 2015;

‘reporting entity’ has the meaning given to it by Article 1 of the OECD model legislation and shall be deemed to include an EU designated entity;

‘TIN’ means a unique identification number allocated to a constituent entity by a jurisdiction for the purposes of income tax and, in relation to the State, means a tax reference number within the meaning of section 885.”,

(b) in subsection (4)(b)(i) by inserting “and TIN” after “identification”,

“(6) Regulations made under this section may, in particular—

(a) make provision for a surrogate parent entity or an EU designated entity, as the case may be, to provide a country-by-country report to the Revenue Commissioners,

(b) make provision for a domestic constituent entity to provide a country-by-country report or an equivalent country-by-country report to the Revenue Commissioners,

(c) determine the date by which a surrogate parent entity or an EU designated entity is required to provide a country-by-country report, or a domestic constituent entity is required to provide a country-by-country report or an equivalent country-by-country report, as the case may be, to the Revenue Commissioners,

(d) make provision to amend the information to be included in an equivalent country-by-country report required to be provided by a domestic constituent entity,

(e) require an ultimate parent entity, a surrogate parent entity, an EU designated entity or a domestic constituent entity, as the case may be, to notify the Revenue Commissioners within the period specified, and in such manner as is specified, that the ultimate parent entity, surrogate parent entity, EU designated entity or domestic constituent entity, as the case may be, are such entities,

(f) require a domestic constituent entity to notify the Revenue Commissioners, within the period specified, and in such manner as is specified, of the identity and jurisdiction of tax residence of the reporting entity,

(g) provide for the serving of a notice to a domestic constituent entity that there has been a systemic failure by the state of tax residence of the ultimate parent entity,

(h) specify and modify, as required, the manner and form in which a country-by-country report or an equivalent country-by-country report is to be provided,

(i) make provision as to how information contained in a country-by-country report or an equivalent country-by-country report is to be used,

(j) make provision for preserving the confidentiality of the information contained in a country-by-country report or an equivalent country- by-country report,

(k) require a domestic constituent entity of an MNE group to request from the ultimate parent entity of that MNE group all the information required to complete a country-by-country report for the MNE group and, where the ultimate parent entity refuses to so provide all of the required information, require that domestic constituent entity to notify the Revenue Commissioners of that refusal within such period and in such manner as may be specified, and

(l) contain such supplemental and incidental matters as appear to the Revenue Commissioners to be necessary—

(i) to enable entities to fulfil their obligations under this section or regulations made under this section, and

(ii) for the operation, administration and implementation of this section or regulations made under this section.”,

(d) in subsection (7) —

(i) in paragraph (a) by inserting “or an equivalent country-by-country report” after “country-by-country report”, and

(ii) in paragraph (b) by substituting “incorrect country-by-country report or equivalent country-by-country report, or an incomplete country-by-country report,” for “incorrect or incomplete country-by-country report”,

(e) in subsection (8) —

(i) in paragraph (a) by inserting “or an equivalent country-by-country report” after “country-by-country report”,

(ii) in paragraph (b)(ii) by inserting “or equivalent country-by-country report, as the case may be,” after “country-by-country report”, and

(iii) in paragraph (c)(ii) by inserting “or an equivalent country-by-country report” after “country-by-country report”,

and

(f) in subsection (10) by inserting “, in relation to a state other than a Member State,” after “provided that”.

(2) This section applies as respects accounting periods ending on or after the date of the passing of this Act.

25 Amendment of Part 38 of Principal Act (returns of income and gains, other obligations and returns, and Revenue powers)

25. (1) Part 38 of the Principal Act is amended by inserting the following section after section 891G:

“Disclosure of certain information for the purposes of administrative cooperation in the field of taxation

891GA. (1) This section provides for the disclosure by the competent authority of information connected with or supplementing the information required to be exchanged under the Regulations.

(2) In this section—

‘advance cross-border ruling’ has the same meaning as it has in the Directive;

‘advance pricing arrangement’ has the same meaning as it has in the Directive;

‘competent authority’ means the Revenue Commissioners acting as the competent authority for the purposes of the Directive;

‘Directive’ means Council Directive 2011/16/EU of 15 February 2011[^7] on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC, as amended by Council Directive 2014/107/EU of 9 December 2014[^8] and Council Directive (EU) 2015/2376 of 8 December 2015[^9];

‘exchange information’ means the information described in Article 8a of the Directive that is required to be communicated by the competent authority under the Regulations;

‘Regulations’ means the European Union (Administrative Cooperation in the Field of Taxation) Regulations 2012;

‘relevant instrument’ means an advance cross-border ruling or an advance pricing arrangement.

(3) The competent authority may, when providing exchange information in respect of a relevant instrument, provide the following information connected with or supplementary to that exchange information:

(a) the reference, if any, assigned by the Revenue Commissioners to the relevant instrument;

(b) where the relevant instrument is related to or connected with any other relevant instrument, information for the purpose of identifying that other relevant instrument;

(i) main business activity,

(ii) annual turnover, and

(iii) annual profits or losses;

(d) whether an address provided in respect of a person is that person’s—

(i) business address,

(ii) legal address, or

(iii) other form of address;

(e) in respect of an advance pricing arrangement which uses more than one transfer pricing methodology, an explanation as to why more than one methodology was used; and

(f) such other information as may be specified in a standard form adopted by the European Commission for the purpose of complying with its obligations under Article 20(5) of the Directive.

(4) The competent authority may delegate to any of its officers any of the functions to be performed by the competent authority under this section.”.

(2) Subsection (1) comes into operation on such day as the Minister for Finance may appoint by order.

Chapter 6 Capital Gains Tax

26 Amendment of section 597AA of Principal Act (revised entrepreneur relief)

26. (1) Section 597AA of the Principal Act is amended in subsection (3) by substituting “10 per cent” for “20 per cent”.

(2) This section applies to disposals made on or after 1 January 2017.

27 Non-resident trusts

27. The Principal Act is amended in Chapter 3 of Part 19—

(a) in section 579 by substituting the following for subsection (6):

“(6) This section shall not apply—

(a) in relation to a loss accruing to the trustees of the settlement, or

(b) where it is shown to the satisfaction of the Revenue Commissioners that the settlement was established for bona fide commercial reasons and did not form part of an arrangement of which the main purpose or one of the main purposes was the avoidance of liability to capital gains tax.”,

and

(b) in section 579A by inserting the following after subsection (9):

“(9A) This section shall not apply where it is shown to the satisfaction of the Revenue Commissioners that the settlement was established for bona fide commercial reasons and did not form part of an arrangement of which the main purpose or one of the main purposes was the avoidance of liability to capital gains tax.”.

28 Amendment of section 598 of Principal Act (disposals of business or farm on “retirement”)

28. (1) Section 598(3A) of the Principal Act is amended by substituting “the Minister for Agriculture, Food and the Marine in accordance with Regulation (EU) No. 508/2014 of the European Parliament and of the Council of 15 May 2014[^10]” for “the Minister for Agriculture, Fisheries and Food in accordance with Council Regulation (EC) No. 1198/2006 of 27 July 2006”.

(2) This section shall come into operation on such day as the Minister for Finance, with the consent of the Minister for Agriculture, Food and the Marine, may, by order, appoint.

29 Amendment of section 604B of Principal Act (relief for farm restructuring)

29. Section 604B(1)(a) is amended in the definition of “relevant period” by substituting “31 December 2019” for “31 December 2016”.

30 Amendment of section 613 of Principal Act (miscellaneous exemptions for certain kinds of property)

30. (1) The Principal Act is amended in section 613 by substituting the following for subsection (7):

“(7) (a) No chargeable gain shall arise on the receipt of an amount of compensation in money or money’s worth under the Cessation of Turf Cutting Compensation Scheme or the Protected Raised Bog Restoration Incentive Scheme administered by the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs, relating to—

(i) a European Site (within the meaning of Regulation 2 of the European Communities (Birds and Natural Habitats) Regulations 2011 (S.I. No. 477 of 2011)) that contains raised bog,

(ii) a Natural Heritage Area (within the meaning of section 2 of the Wildlife Act 1976 (No. 39 of 1976)) that contains raised bog, or

(iii) any other lands which, in the opinion of the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs, are necessary to achieve the restoration of a European Site or Natural Heritage Area, referred to in subparagraph (i) or (ii).

(b) Any amount paid under the Protected Raised Bog Restoration Incentive Scheme for the voluntary purchase of land or under a management agreement within the meaning of Regulation 2 of the European Communities (Birds and Natural Habitats) Regulations 2011 shall be deemed to be an amount of compensation for the purposes of paragraph (a).”.

(2) This section shall apply to amounts of compensation received on or after 1 October 2016 under the Schemes referred to in subsection (1).

PART 2 Excise

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

31. Chapter 1 of Part 2 of the Finance Act 2001 is amended—

(a) in section 96(1), in paragraph (a) of the definition of “registered consignee”, by substituting “section 109IA” for “section 109J(3) ”, and

(b) by substituting the following for section 109A—

“Authorisation of registered consignors

109A. (1) In this section—

‘applicant’ means a person who has applied in writing for authorisation under subsection (2);

‘authorised’ means authorised as a registered consignor under this section;

‘conditions of authorisation’ means the conditions referred to in subsection (2)(c).

(2) The Commissioners may, under this section, authorise a person, who has applied to them in writing, as a registered consignor—

(a) for consignments of specific types of excisable products,

(b) in respect of a premises or place, and

(3) The granting to, or the holding by, an applicant or holder, as the case may be, of an authorisation shall be conditional on the applicant or registered consignor complying with excise law in relation to excisable products, including the requirements of this Chapter relating to the systems (including the accounting and stock control systems) and procedures of the business to which the authorisation relates.

(4) The Commissioners shall grant an authorisation under subsection (2) only where it is shown to their satisfaction that—

(a) the applicant can satisfy the conditions of authorisation,

(b) the business activity to be carried out under the authorisation is to be undertaken with a view to the realisation of profits arising out of or related to legitimate trade in excisable products,

(d) the systems (including the accounting and stock control systems) and procedures of the business to which the application for the authorisation relates will provide a full and true record of all transactions of that business in a form readily accessible to the Commissioners, and

(e) the premises or place in respect of which the authorisation is to be granted is suitable for the security of excisable products.

(5) The Commissioners shall not grant an authorisation where the applicant or, where the applicant is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997) of that company—

(a) has, in the 10 years prior to the date of the application for the authorisation, been convicted of—

(i) any indictable offence under the Acts referred to in section 1078(1) of the Taxes Consolidation Act 1997, or

(ii) any corresponding offence under the law of another Member State,

(b) does not hold a current tax clearance certificate issued under section 1094 of the Taxes Consolidation Act 1997, or

(i) a registered consignor under this section,

(ii) an authorised warehousekeeper under section 109, or

(iii) a registered consignee under section 109IA,

where there has been a contravention of, or a failure to comply with, the conditions of that previous authorisation and the applicant has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied.

(6) The details of an authorisation granted under subsection (2), including the conditions of authorisation, shall be set down in a document, referred to in this section as an ‘authorisation document’.

(7) An authorisation document shall be signed by the applicant and by an officer, and it shall, unless another date is specified, be effective from the later of—

(a) the date on which it is signed by the applicant, and

(b) the date on which it is signed by the officer.

(8) Before any excisable products are consigned by a registered consignor, that registered consignor shall provide security, valid throughout the European Union, at a level specified in the authorisation document, for the excise duty on such consignment.

(9) A registered consignor shall inform an officer of any changes or proposed changes that are relevant to the conditions of authorisation.

(10) The Commissioners may at any time, following such notice as is reasonable in the circumstances, vary the conditions of authorisation.

(11) Where a registered consignor is a company, the authorisation shall expire immediately upon a change of control, within the meaning of section 11 of the Taxes Consolidation Act 1997, of such company.

(12) (a) Where a registered consignor has ceased, or intends to cease, carrying out the activities for which an authorisation was granted to it, it shall—

(i) where the registered consignor has ceased carrying out those activities, notify the Commissioners in writing of the date those activities ceased, and

(ii) where the registered consignor intends to cease carrying out those activities, notify the Commissioners in writing of that intention and the date on which the registered consignor intends to cease to carry out those activities.

(b) An authorisation granted to a registered consignor under this section shall stand revoked from such date as is specified in a notification given to the Commissioners in accordance with paragraph (a).

(13) An authorisation under this section is at all times subject to the conditions of authorisation, and the Commissioners may revoke an authorisation where—

(a) the registered consignor or, where the registered consignor is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997) of that company has in the preceding 10 years been convicted of—

(i) any indictable offence under the Acts referred to in section 1078(1) of the Taxes Consolidation Act 1997, or

(ii) any corresponding offence under the law of another Member State,

(b) the Commissioners are satisfied that there has been a contravention of, or failure to comply with, a requirement of excise law in relation to the excisable products for which the authorisation was granted by—

(i) the registered consignor, or

(ii) where the holder of the authorisation is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997) of that company,

and the registered consignor or the person referred to in subparagraph (ii), as the case may be, has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied,

(c) the Commissioners are satisfied that there has been a contravention of, or failure to comply with, any of the conditions of authorisation by the registered consignor and the registered consignor has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied,

(d) the registered consignor, when applying for that authorisation, provided information that was false or misleading in a material respect,

(e) the registered consignor does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the activity carried out under the authorisation is undertaken with a view to the realisation of profits arising out of or related to legitimate trade in excisable products,

(f) the registered consignor does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the activity carried out under the authorisation is conducted solely for the benefit of the registered consignor,

(g) the registered consignor does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the systems (including the accounting and stock control systems) and procedures of the business to which the authorisation relates provide a full and true record of all transactions of that business in a form readily accessible to the Commissioners, or

(h) the registered consignor does not, when required to do so by the Commissioners, show to their satisfaction that the premises or place in respect of which the authorisation was granted is suitable for the security of those excisable products.

(14) Where the Commissioners propose to revoke an authorisation under this section, they shall notify the registered consignor concerned in writing of their intention, and afford such registered consignor a period of at least 15 working days from the date of that notification to make representations to them in relation to the matter.”.

32 Amendment of Chapter 2A of Part 2 of Finance Act 2001 (intra-European Union movement under a suspension arrangement)

32. Chapter 2A of Part 2 of the Finance Act 2001 is amended—

(a) in section 109B, in the definition of “temporary registered consignee”, by substituting “authorisation is limited accordingly under section 109IA” for “registration is limited accordingly under section 109J(3) ”,

(b) by inserting the following after section 109I—

“Authorisation of registered consignees

109IA. (1) In this section—

‘applicant’ means a person who has applied in writing for authorisation under subsection (2);

‘authorised’ means authorised as a registered consignee under this section;

‘conditions of authorisation’ means the conditions referred to in subsection (2)(b).

(2) The Commissioners may, under this section, authorise a person who has applied to them in writing as a registered consignee—

(a) for consignments of specific types of excisable products, and

(b) for such period, and subject to such conditions as the Commissioners may think fit to impose.

(3) Without prejudice to the generality of subsection (2)(b), an authorisation under subsection (2) may be limited to—

(a) a specified quantity of excisable products,

(b) a single consignment,

(d) a specified period,

in any case where consignments are to be delivered only occasionally.

(4) A registered consignee shall—

(a) provide security for the excise duty on every consignment to be received, before such consignment is dispatched, and

(b) enter in its accounts details of excisable products received under a duty suspension arrangement, at the end of the movement of such excisable products.

(5) The granting to an applicant, or the holding by a registered consignee, as the case may be, of an authorisation shall be conditional on the applicant or registered consignee complying with excise law in relation to excisable products, including the requirements of this Chapter relating to the systems (including the accounting and stock control systems) and procedures of the business to which the authorisation relates.

(6) The Commissioners shall grant an authorisation under subsection (2) only where it is shown to their satisfaction that—

(a) the applicant can satisfy the conditions of authorisation,

(b) the business activity to be carried out under the authorisation is to be undertaken with a view to the realisation of profits arising out of or related to legitimate trade in excisable products,

(e) the applicant has a secure premises or place to which consignments are to be delivered, and where they can be examined as required by an officer.

(7) The Commissioners shall not grant an authorisation where an applicant or, where the applicant is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997) of that company—

(a) has, in the 10 years prior to the date of the application for the authorisation, been convicted of—

(i) any indictable offence under the Acts referred to in section 1078(1) of the Taxes Consolidation Act 1997, or

(ii) any corresponding offence under the law of another Member State,

(b) does not hold a current tax clearance certificate issued under section 1094 of the Taxes Consolidation Act 1997,

(d) has been authorised previously as—

(i) a registered consignee under this section,

(ii) an authorised warehousekeeper under section 109, or

(iii) a registered consignor under section 109A,

(8) The details of an authorisation granted under subsection (2), including the conditions of authorisation, shall be set down in a document, referred to in this section as an ‘authorisation document’.

(9) An authorisation document shall be signed by the applicant and by an officer, and it shall, unless another date is specified, be effective from the later of—

(a) the date on which it is signed by the applicant, and

(b) the date on which it is signed by the officer.

(10) A registered consignee shall inform an officer of any changes or proposed changes that are relevant to the conditions of authorisation.

(11) The Commissioners may at any time, following such notice as is reasonable in the circumstances, vary the conditions of authorisation.

(12) Where a registered consignee is a company, the authorisation shall expire immediately upon a change of control, within the meaning of section 11 of the Taxes Consolidation Act 1997, of such company.

(13) (a) Where a registered consignee has ceased, or intends to cease, carrying out the activities for which an authorisation was granted to it, it shall—

(i) where the registered consignee has ceased carrying out those activities, notify the Commissioners in writing of the date those activities ceased, and

(ii) where the registered consignee intends to cease carrying out those activities, notify the Commissioners in writing of that intention and the date on which the registered consignee intends to cease to carry out those activities.

(b) An authorisation granted to a registered consignee under this section shall stand revoked from such date as is specified in a notification given to the Commissioners in accordance with paragraph (a).

(14) An authorisation under this section is at all times subject to the conditions of authorisation and the Commissioners may revoke an authorisation where—

(a) the registered consignee or, where the registered consignee is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997) of that company has in the preceding 10 years been convicted of—

(i) any indictable offence under the Acts referred to in section 1078(1) of the Taxes Consolidation Act 1997, or

(ii) any corresponding offence under the law of another Member State,

(i) the registered consignee, or

(ii) where the holder of the authorisation is a company, any director or person having control (within the meaning of section 11 of the Taxes Consolidation Act 1997) of that company,

and the registered consignee, or the person referred to in subparagraph (ii), as the case may be, has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied,

(c) the Commissioners are satisfied that there has been a contravention of, or failure to comply with, any of the conditions of authorisation by the registered consignee and the registered consignee has not shown to the satisfaction of the Commissioners that the contravention or failure has been remedied,

(d) the registered consignee, when applying for that authorisation, provided information that was false or misleading in a material respect,

(e) the registered consignee does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the activity carried out under the authorisation is undertaken with a view to the realisation of profits arising out of or related to legitimate trade in excisable products,

(f) the registered consignee does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the activity carried out under the authorisation is conducted solely for the benefit of the registered consignee,

(g) the registered consignee does not, when required to do so by the Commissioners, show to the satisfaction of the Commissioners that the systems (including the accounting and stock control systems) and procedures of the business to which the authorisation relates provide a full and true record of all transactions of that business in a form readily accessible to the Commissioners, or

(h) the registered consignee does not, when required to do so by the Commissioners, show to their satisfaction that the premises or place referred to in subsection (6)(e) is suitable.

(15) Where the Commissioners propose to revoke an authorisation under this section, they shall notify the registered consignee accordingly in writing of their intention, and afford such registered consignee a period of at least 15 working days from the date of that notification, to make representations to them in relation to the matter.

(16) A person who, immediately before the commencement of section 32 of the Finance Act 2016, was a registered consignee shall be deemed to be a registered consignee authorised under an authorisation granted under this section, the conditions of authorisation of which shall be deemed to be the conditions prescribed or otherwise imposed under subsection (3) of section 109J prior to the deletion of that subsection by section 32 of the Finance Act 2016 and, accordingly, subsections (4), (5), (8), (10), (11), (12), (13), (14) and (15) shall apply in respect of that person.”,

(d) by deleting subsections (3) and (4) of section 109J.

33 Amendment of section 122 of Finance Act 2001 (offences in relation to false returns, claims, etc.)

33. Section 122(a)(iii) of the Finance Act 2001 is amended by substituting the following clause for clause (III):

“(III) authorisation as a registered consignee under section 109IA, or”.

34 Amendment of Chapter 5 of Part 2 of Finance Act 2001 (miscellaneous)

34. Chapter 5 of Part 2 of the Finance Act 2001 is amended—

(a) in section 144A(2), by substituting the following paragraph for paragraph (d):

“(d) the authorisation of a registered consignee under section 109IA,”,

(b) in section 146(1A), by substituting the following for paragraph (c):

“(c) a refusal to authorise a person as a registered consignee under section 109IA or a revocation under that section of any such authorisation;”,

and

35. Amendment of Chapter 4 of Part 2 of Finance Act 2001 (powers of officers)

35. Chapter 4 of Part 2 of the Finance Act 2001 is amended—

(a) in section 136 by inserting the following after paragraph (c) of subsection (6):

“(ca) to take account of and, without payment, take samples of any product referred to in section 97 and of any materials, ingredients and substances used or to be used in the manufacture of such product,”,

and

(b) by inserting the following after section 137:

“Substitute fuels

137A. (1) In this section—

‘business’ means any employment, trade, profession or vocation;

‘relevant person’ means any person who has procured or has or had possession, custody or control of a relevant product;

‘relevant product’ means any product in liquid form.

(2) A word or expression used in this section and which is also used in Chapter 1 of Part 2 of the Finance Act 1999 has, unless a meaning is assigned to it in this section or the contrary intention otherwise appears, the same meaning in this section as it has in that Chapter.

(3) An officer may make such enquiries of any person as the officer deems appropriate to establish the use or intended use of a relevant product and such person shall give to such officer all information required of such person which is in his or her possession, custody or procurement.

(4) (a) Subject to paragraph (b), where an officer forms an opinion that a relevant product is a substitute fuel or an additive, the powers set out in sections 134 to 136 and section 140 shall apply in respect of that relevant product.

(b) An officer may form an opinion that a relevant product is a substitute fuel having regard to the following:

(i) the relevant person’s business;

(ii) the relevant person’s stated reasons for procuring or having possession, custody or control of the relevant product;

(iii) the nature of the relevant product, including the nature of any package or container;

(iv) the relevant person’s conduct, including his or her use, or stated intended use, of the relevant product or any refusal to disclose his or her use, or intended use, of the relevant product;

(v) the quantity procured or purchased of the relevant product;

(vi) the frequency of deliveries of relevant products to the relevant person;

(vii) any document or other information whatsoever about the relevant product;

(viii) any other circumstances that appear to be relevant.

(5) Where the officer forms the opinion that the relevant product is a substitute fuel or additive that relevant product shall, in accordance with the provisions of Chapter 1 of Part 2 of the Finance Act 1999, be liable to mineral oil tax.”.

36 Rates of tobacco products tax

36. The Finance Act 2005 is amended with effect as on and from 12 October 2016 by substituting the following for Schedule 2 (as amended by section 45 of the Finance Act 2015(No. 52 of 2015)) to that Act:

“SCHEDULE 2

Rates of Tobacco Products Tax

(With effect as on and from 12 October 2016)

Description of Product	Rate of Tax
Cigarettes................	Rate of tax at—
	(a) except where paragraph (b) applies, €288.22 per thousand together with an amount equal to 9.52 per cent of the price at which the cigarettes are sold by retail, or
	(b) €325.11 per thousand in respect of cigarettes sold by retail where the rate of tax would be less than that rate had the rate been calculated in accordance with paragraph (a).
Cigars................	Rate of tax at €335.368 per kilogram.
Fine-cut tobacco for the rolling of cigarettes................	Rate of tax at €310.189 per kilogram.
Other smoking tobacco......	Rate of tax at €232.664 per kilogram.

”.

37. Amendment of section 78A of Finance Act 2003 (relief for small breweries)

37. (1) Section 78A of the Finance Act 2003 is amended—

(a) in subsection (1)(a), by substituting “40,000 hectolitres” for “30,000 hectolitres”,

(b) in subsection (3)(b)(ii), by substituting “80,000 hectolitres” for “60,000 hectolitres”, and

(2) Subsection (1) comes into operation on 1 January 2017.

38. Amendment of Chapter 1 of Part 2 of Finance Act 1999 (mineral oil tax)

38. (1) Chapter 1 of Part 2 of the Finance Act 1999 is amended—

(a) in section 94(1) —

(i) by substituting the following for the definition of “additive”:

“‘additive’ means any product (other than hydrocarbon oil, liquefied petroleum gas, substitute fuel or vehicle gas) which may be added to—

(a) hydrocarbon oil,

(b) liquefied petroleum gas,

(d) vehicle gas,

as an extender or for the purpose of improving performance or for any other purpose, and cognate words shall be construed accordingly;”,

(ii) by substituting the following for the definition of “liquefied petroleum gas”:

“‘liquefied petroleum gas’ means petroleum gases and other gaseous hydrocarbons falling within CN codes 2711 12 11 to 2711 19 00;”,

(iii) by substituting the following for the definition of “mineral oil”:

“‘mineral oil’ means hydrocarbon oil, liquefied petroleum gas, vehicle gas, substitute fuel and additives;”,

(iv) in the definition of “hydrocarbon oil” by substituting “include vehicle gas or any oil” for “include any oil”,

(v) by inserting the following definitions:

“‘CN code’ means a Community subdivision to the combined nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 1987[^11] as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 2001[^12];

‘natural gas’ means natural gas falling within CN codes 2711 11 00 and 2711 21 00;

‘vehicle biogas’ means vehicle gas obtained solely from biomass;

‘vehicle gas’ means gas other than liquefied petroleum gas used or intended for use as vehicle fuel;

‘vehicle gas accounting period’ means a period of two months or such other period as the Commissioners may prescribe for the purposes of the returns and payment of mineral oil tax under section 95E;

‘vehicle gas dispenser’ means a person who, at a premises or place in the State, receives vehicle gas for the purpose of supplying that vehicle gas to the fuel tank or standard tank of a vehicle and includes a person who receives vehicle gas from, or supplies vehicle gas to themselves for that purpose;

‘vehicle gas supplier’ means a person who supplies vehicle gas to a vehicle gas dispenser;”,

and

(vi) by deleting the definition of “methane”,

(b) in section 94(2)(b)(ii) by substituting “oil or gas” for “oil”,

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

“(1) Subject to the provisions of this Chapter, and any regulations made under it, a duty of excise, to be known as mineral oil tax, shall be charged, levied and paid—

(a) on all mineral oil (other than vehicle gas)—

(i) released for consumption in the State, or

(ii) released for consumption in another Member State, and brought into the State,

and

(b) on all vehicle gas supplied to a vehicle gas dispenser.”,

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

“(2) Liability to mineral oil tax shall arise—

(a) in the case of mineral oil other than vehicle gas, at the time when that mineral oil is—

(i) released for consumption in the State, or

(ii) following release for consumption in another Member State, brought into the State,

and

(b) in the case of vehicle gas, at the time when that vehicle gas is supplied to a vehicle gas dispenser.”,

and

(iii) by inserting the following subsection after subsection (2):

“(2A) For the purposes of subsection (2)(b), the time the vehicle gas is supplied to a vehicle gas dispenser is the time at which the vehicle gas is recorded at the meter referred to in section 95B as having been received by that vehicle gas dispenser.”,

(d) by inserting the following sections after section 95:

“Supply of vehicle gas

95B. (1) A vehicle gas supplier shall not supply any vehicle gas to a vehicle gas dispenser’s premises or place unless the vehicle gas dispenser has, at that premises or place, a meter that has been fitted by the transmission system operator for the exclusive purpose of measuring and recording the quantity of vehicle gas supplied to that vehicle gas dispenser.

(2) A vehicle gas dispenser shall not receive any vehicle gas, or permit any vehicle gas to be received, at that vehicle gas dispenser’s premises or place unless—

(a) the vehicle gas dispenser has, at that premises or place, a meter that has been fitted by the transmission system operator for the exclusive purpose of measuring and recording the quantity of vehicle gas supplied to that vehicle gas dispenser, and

(b) the vehicle gas received at that premises or place is measured and recorded by a meter referred to in paragraph (a).

(3) In this section, ‘meter’ and ‘transmission system operator’ have the same meanings as they have in section 15 of the Energy (Miscellaneous Provisions) Act 1995.

Liability to pay mineral oil tax on vehicle gas

95C. (1) Subject to subsection (2), a vehicle gas supplier shall be accountable for and liable to pay mineral oil tax on the vehicle gas supplied to a vehicle gas dispenser by that supplier.

(2) A vehicle gas dispenser shall be liable for any deficiency in the amount of tax paid on a supply of vehicle gas to that vehicle gas dispenser, where the deficiency has resulted from false or misleading information furnished by that vehicle gas dispenser to the vehicle gas supplier, and no such liability for the deficiency shall attach to that vehicle gas supplier.

Registration of vehicle gas suppliers

95D. A vehicle gas supplier shall register with the Commissioners in accordance with such procedures as the Commissioners may prescribe or otherwise impose.

Returns and payment by vehicle gas suppliers

95E. (1) For the purposes of section 95C, a vehicle gas supplier shall within one month of the end of a vehicle gas accounting period, furnish to an officer, in such form as the Commissioners may require, a return showing the quantity of vehicle gas supplied by that vehicle gas supplier during that accounting period to vehicle gas dispensers.

(2) The vehicle gas supplier shall, in accordance with the return under subsection (1) and by the time that return is due, pay the amount of mineral oil tax due in respect of the vehicle gas supplied by that vehicle gas supplier during the accounting period concerned.

(3) Any vehicle gas supplier that is not established in the State shall make such arrangements with the Commissioners as the Commissioners may require for the payment of the tax and accounting for it, and those arrangements shall include the appointment of a competent person in the State to give effect to them.”,

(e) in section 96—

(i) in subsection (1B), by substituting “mineral oil, other than vehicle gas,” for “mineral oil” where it first occurs,

(ii) by inserting the following subsection after subsection (1B):

“(1C) The rate of tax per megawatt hour specified for vehicle gas in Schedule 2A is in proportion to the emissions for natural gas and is determined by the formula—

EF x A x C

where—

EF is the carbon emission factor of natural gas expressed in kilograms of CO2 per terajoule,

A is the amount, €0.02, to be charged per kilogram of CO2 emitted, and

C is 0.0036, the number of terajoules per megawatt hour.”,

and

(iii) in subsection (5), by substituting “mineral oil tax on mineral oil other than vehicle gas” for “the carbon charge”,

(f) in section 100, by inserting the following subsection after subsection (5):

“(5A) Subject to such conditions as the Commissioners may prescribe or otherwise impose, a relief from the carbon charge shall apply—

(a) to any vehicle gas that is shown to the satisfaction of the Commissioners to be vehicle biogas, and

(b) where vehicle biogas has been mixed or blended with any other vehicle gas, to the vehicle biogas content of any such mixture or blend.”,

(g) in section 101(1), by substituting “(other than additives or vehicle gas)” for “(other than additives)”,

(h) in section 101B(1), by substituting “mineral oil, other than vehicle gas, sold” for “mineral oil sold”,

(i) in section 102(1)(d), by substituting “(other than additives or vehicle gas)” for “(other than additives)”,

(j) in section 104(2), by substituting the following for paragraph (g):

“(g) require a person who is an owner of or who is for the time being in charge of any vehicle constructed or adapted to use liquefied petroleum gas, vehicle gas or substitute fuel as a propellant in that vehicle to give such information, as may be specified, in relation to the supply or use of such mineral oil;”,

(k) by substituting the following for Schedule 2:

“SCHEDULE 2

Rates of Mineral Oil Tax

Description of Mineral Oil	Rate of Tax
Light Oil:
Petrol	€587.71 per 1,000 litres
Aviation gasoline	€587.71 per 1,000 litres

Heavy Oil:
Used as a propellant	€479.02 per 1,000 litres
Used for air navigation	€479.02 per 1,000 litres
Used for private pleasure navigation	€479.02 per 1,000 litres
Kerosene used other than as a propellant	€50.73 per 1,000 litres
Fuel oil	€76.53 per 1,000 litres
Other heavy oil	€102.28 per 1,000 litres

Liquefied Petroleum Gas:
Used as a propellant	€96.45 per 1,000 litres
Other liquefied petroleum gas	€32.86 per 1,000 litres

Vehicle gas:	€9.36 per megawatt hour

”,

and

(l) by substituting the following for Schedule 2A:

“SCHEDULE 2A

Carbon Charge

Description of Mineral Oil	Rate
Light Oil:
Petrol	€45.87 per 1,000 litres
Aviation gasoline	€45.87 per 1,000 litres

Heavy Oil:
Used as a propellant	€53.30 per 1,000 litres
Used for air navigation	€53.30 per 1,000 litres
Used for private pleasure navigation	€53.30 per 1,000 litres
Kerosene used other than as a propellant	€50.73 per 1,000 litres
Fuel oil	€61.75 per 1,000 litres
Other heavy oil	€54.92 per 1,000 litres

Liquefied Petroleum Gas:
Used as a propellant	€32.86 per 1,000 litres
Other liquefied petroleum gas	€32.86 per 1,000 litres

Vehicle gas:	€4.10 per megawatt hour

”.

(2) Sections 55 and 56 of the Finance Act 2014 are repealed.

(3) This section shall come into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.

39 Amendment of section 97 of Finance Act 2001 (excisable products (Part 2))

39. (1) Section 97 of the Finance Act 2001 is amended by substituting the following paragraph for paragraph (c):

“(c) mineral oil within the meaning of section 94 of the Finance Act 1999, other than vehicle gas within the meaning of that section.”.

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

40 Amendment of section 67 of Finance Act 2010 (charging and rates of natural gas carbon tax)

40. (1) Section 67(1) of the Finance Act 2010 is amended by substituting “all natural gas, other than natural gas subject to mineral oil tax under section 95(1)(b) of the Finance Act 1999,” for “all natural gas”.

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

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