Legalize / Ireland / Act

Finance Act 2017

Type Act

Publication 2017-12-25

State In force

Source Irish Statute Book

articles Not indexed

Reform history JSON API

(a) in section 616(1)(a) by substituting “sections 617(5), 621(1) and 623(7)” for “section 621(1)”,

(b) in section 617 by inserting the following after subsection (4):

“(5) For the purposes of this section, a ‘group of companies’ shall include only companies which, by virtue of the law of a relevant Member State or other territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, are resident for the purposes of tax in such Member State or territory, as the case may be, and for this purpose ‘tax’, in relation to a relevant Member State or such territory, other than the State, means any tax imposed in the Member State or territory which corresponds to corporation tax in the State.”,

and

“(7) For the purposes of this section, a ‘group of companies’ shall include only companies which, by virtue of the law of a relevant Member State or other territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, are resident for the purposes of tax in such Member State or territory, as the case may be, and for this purpose ‘tax’, in relation to a relevant Member State or such territory, other than the State, means any tax imposed in the Member State or territory which corresponds to corporation tax in the State.”.

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

32. (1) Section 613 of the Principal Act is amended—

(a) in subsection (1) by inserting the following after paragraph (c):

“(ca) any sum obtained by means of compensation under the 2017 Voluntary Homeowners Relocation Scheme administered by the Commissioners of Public Works in Ireland under section 2 of the Commissioners of Public Works (Functions and Powers) Act 1996;”,

and

(b) in subsection (7) by inserting the following after paragraph (a):

“(aa) No chargeable gain shall arise on a disposal of land (including a right of turbary) to the Minister referred to in paragraph (a) where that land has been acquired by that Minister for the purposes of granting a right of turbary to an individual who—

(i) is entitled to compensation under the scheme referred to in paragraph (a), and

(ii) enters into an agreement with that Minister in respect of that land (or any estate, right or interest in or over that land).”.

(2) This section applies with effect from 19 October 2017.

33. Amendment of section 604A of Principal Act (relief for certain disposals of land or buildings)

33. (1) Section 604A of the Principal Act is amended—

(a) in subsection (2)(b) by substituting “4 years” for “7 years”,

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

“(2A) Where a person disposes of land or buildings to which this section applies during the period beginning 4 years after the date they were acquired and ending 7 years after that date, any gain on the disposal of such land or buildings shall not be a chargeable gain.”,

(d) in subsection (4)—

(i) by substituting “subsection (2A) or (3)” for “subsection (3)”,

(ii) in paragraph (a) by substituting “in the period from” for “in the period of 7 years from”, and

(iii) in paragraph (b) by substituting “subsection (2A) or (3), as the case may be” for “subsection (3)”.

(2) Subsection (1) applies to disposals made on or after 1 January 2018.

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

34. (1) Section 598 of the Principal Act is amended by inserting the following after subsection (2):

“(2A) (a) In this subsection ‘solar panel’ means ground-mounted equipment used to capture solar energy and convert it into electrical energy, together with ancillary equipment used to harness, store and transfer the electrical energy.

(b) Notwithstanding that solar panels are installed on land which is suitable for farming purposes, the land shall be treated as a qualifying asset for the purposes of subsection (2) where the area of the land on which the solar panels are installed does not exceed half the total area of the land concerned.”.

(2) Subsection (1) applies to disposals made on or after 1 January 2018.

PART 2 Excise

Chapter 1 Sugar Sweetened Drinks Tax

35. **Interpretation (Chapter 1)**

35. In this Chapter and in Schedule 4—

“accounting period” means a period of 2 calendar months or such other period as the Commissioners may prescribe for the purposes of payment and returns under section 39;

“added sugar” means—

(a) sugar, or

(b) substances containing sugar, except for juices,

that is or are combined with other ingredients in the production or manufacture of prepacked ready to consume sugar sweetened drinks or prepacked concentrated sugar sweetened drinks;

“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[^15] as amended by Commission Implementing Regulation (EU) No. 1821/2016 of 6 October 2016 [^16];

“Commissioners” means the Revenue Commissioners;

“concentrated” means a prepacked liquid or solid that requires preparation before consumption as a beverage;

“exporter” means a person who supplies sugar sweetened drinks on a commercial basis outside the State where the sugar sweetened drinks have been acquired in the State by that person;

“food information” has the meaning assigned to it by Article 2 of Regulation (EU) No. 1169/2011 [^17] on the provision of food information to consumers;

“food supplement” has the meaning assigned to it by the European Communities (Food Supplements) Regulations 2007 (S.I. No. 506 of 2007);

“first supplied”, where express provision is not made in this behalf, means the first time a supply is made within the State by a supplier;

“juice” means any fruit or vegetable juice falling within CN Code heading 2009 that does not contain added sugar;

“label” has the meaning assigned to it by Article 2 of Regulation (EU) No. 1169/2011 on the provision of food information to consumers;

“officer” means an officer of the Commissioners;

“prepacked” has the meaning assigned to it by Article 2 of Regulation (EU) No. 1169/2011 on the provision of food information to consumers;

“preparation” means the addition of water, ice or carbon dioxide, or any combination of these substances, in a manner detailed on the label, packaging or accompanying documentation of the sugar sweetened drink, to give rise to a beverage that is ready to consume;

“prescribed” means prescribed by regulations made by the Commissioners under section 45;

“ready to consume” means intended for direct consumption by a consumer;

“related company” has the meaning assigned to it by the Companies Act 2014;

“sugar” has the meaning assigned to it by Annex 1 of Regulation (EU) No. 1169/2011 on the provision of food information to consumers;

“sugar content” means the number of grams of sugar per 100 millilitres of sugar sweetened drink in ready to consume form;

“sugar sweetened drink” means—

(a) a prepacked, ready to consume beverage, containing added sugar and which falls within CN Code headings 2009 and 2202 except for beverages falling within CN Code subheadings 2202 91 00, 2202 99 11, 2202 99 15, 2202 99 91, 2202 99 95, 2202 99 99 and alcohol free wines falling within CN Code subheading 2202 99 19, other than—

(i) food supplements, or

(ii) products exempted by the European Union (Provision of Food Information to Consumers) (Amendment) (No. 2) Regulations 2016 (S.I. No. 559 of 2016) from requirements to provide specific food information on labels, packaging or accompanying documentation,

(b) a prepacked, concentrated substance in liquid or solid form, containing added sugar, which requires preparation before consumption by the final consumer and which, after such preparation, has the same characteristics as beverages referred to in paragraph (a), other than—

(i) food supplements, or

“supplier” means—

(a) except where paragraph (b) applies, a taxable person within the meaning of section 2 of the Value-Added Tax Consolidation Act 2010, or

(b) an accountable person for the purposes of Part 2 of the Value-Added Tax Consolidation Act 2010,

who supplies sugar sweetened drinks;

“supply” means the supply of a quantity of sugar sweetened drink to another person, other than—

(a) the supply or self-supply of a beverage prepared from a prepacked concentrated sugar sweetened drink for private domestic use,

(b) the supply of sugar sweetened drinks between related companies, or

(c) the supply of a beverage prepared from a prepacked concentrated sugar sweetened drink which has already been supplied in the State;

“tax” means sugar sweetened drinks tax within the meaning of section 36.

36. Charging and rates of sugar sweetened drinks tax

36. (1) Subject to the provisions of this Chapter and any regulations made under it, a duty of excise, to be known as sugar sweetened drinks tax, shall be charged, levied and paid at the rates specified in Schedule 4 on each sugar sweetened drink, with a sugar content of 5 grams or more per 100 millilitres, supplied in the State by a supplier.

(2) For the purposes of the charge to sugar sweetened drinks tax, the sugar content of a sugar sweetened drink shall be that which is stated in, or can be ascertained from, the food information set out on the label or packaging of, or the accompanying documentation for, the drink concerned.

(3) Notwithstanding subsection (2), where a sugar sweetened drink is first supplied in a concentrated form or in a ready to drink form prepared from a concentrated form, then the sugar content shall be ascertained on the basis of the sugar content of the ready to consume beverage resulting from preparation in accordance with manufacturer’s or producer’s instructions provided on the label, packaging or accompanying documentation for the concentrated sugar sweetened drink concerned.

37. Liability to pay sugar sweetened drinks tax

37. Tax shall be charged at the time the sugar sweetened drink is first supplied in the State by a supplier and that supplier shall be accountable for and liable to pay the tax charged.

38. Registration of sugar sweetened drinks suppliers and exporters

38. (1) Before making a supply of a sugar sweetened drink, being the first supply of the sugar sweetened drink by the supplier, a supplier shall (if not already so registered) register with the Commissioners in accordance with such procedures as the Commissioners may prescribe or otherwise require.

(2) An exporter who intends to claim relief under section 40 shall, prior to the first export of sugar sweetened drinks, register with the Commissioners in accordance with such procedures as the Commissioners may prescribe or otherwise require; a reference in this Chapter to a registered exporter is a reference to an exporter who is registered with the Commissioners in accordance with those procedures.

39. Returns and payment by sugar sweetened drinks suppliers

39. (1) For the purposes of section 37, a supplier shall within one month after the end of an accounting period, in respect of the sugar sweetened drinks supplied in that accounting period, furnish to an officer a return in such form as the Commissioners may require showing—

(a) the quantity of ready to consume sugar sweetened drinks supplied by the supplier in that period, and

(b) the quantity of ready to consume beverages that would result from the preparation of the quantity of concentrated sugar sweetened drinks supplied by the supplier in that period.

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

40. Relief from sugar sweetened drinks tax for supplies made outside the State

40. Subject to such conditions as the Commissioners may prescribe or otherwise impose, a full relief from the tax shall be granted to a registered exporter in respect of any sugar sweetened drinks that are shown to the satisfaction of the Commissioners to have been supplied outside the State by that registered exporter.

41. Returned sugar sweetened drinks

41. Subject to such conditions as the Commissioners may prescribe or otherwise impose, a repayment of tax may be granted in respect of any sugar sweetened drinks, for which tax has been paid, that are shown to the satisfaction of the Commissioners to have been returned to the liable supplier.

42. Repayments of sugar sweetened drinks tax

42. (1) Where a supply qualifies under sections 40 and 41 a repayment of that tax shall be made to the relevant person.

(2) (a) Claims for repayment under subsection (1) shall be in such form as the Commissioners may direct and shall be submitted to the Commissioners within a period of not less than 1 month and not more than 6 calendar months after the end of the accounting period in which the supplies were made.

(b) Except where the Commissioners may in any particular case otherwise allow, a repayment may not be made unless the claim is made within 6 calendar months following the end of the period in respect of which the claim for repayment is made.

43. Records

43. Every supplier and exporter of sugar sweetened drinks shall maintain such records for such periods as the Commissioners may prescribe and shall produce those records for inspection to a Revenue officer where the officer so requests.

44. **Offence and penalty (Chapter 1)**

44. (1) It is an offence under this subsection for any person to contravene or fail to comply with any provision of this Chapter, or any regulation made under section 45, or any condition imposed under this Chapter, or under such regulation in relation to such provision.

(2) Without prejudice to any other penalty to which a person may be liable, a person guilty of an offence under subsection (1) shall be liable on summary conviction, to a class A fine.

(3) Where an offence under subsection (1) is committed by a body corporate and the offence is proved to have been committed with the consent or connivance of any person who, when the offence was committed, was a director, manager, secretary or other officer of the body corporate, or who purported to act in any such capacity, that person as well as the body corporate shall be guilty of an offence and shall be liable to be proceeded against and punished as if he or she were guilty of the first-mentioned offence.

(4) Where the affairs of a body corporate are managed by its members, subsection (3) shall apply in relation to the acts and defaults of a member in connection with his or her functions of management as if he or she were a director or manager.

45. **Regulations (Chapter 1)**

45. The Commissioners may, for the purposes of managing, securing and collecting the tax, or for the protection of the revenue derived from it, make regulations.

46. **Care and management (Chapter 1)**

46. The tax imposed by this Chapter is placed under the care and management of the Commissioners.

47. **Commencement (Chapter 1)**

47. This Chapter comes into operation on such day as the Minister for Finance may appoint by order.

Chapter 2 Miscellaneous

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

48. Chapter 4 of Part 2 of the Finance Act 2001 is amended in section 138 by substituting the following for subsection (2):

“(2) For the purposes of paragraphs (c) and (d) of subsection (1), a receptacle includes, but is not limited to, a bag, parcel, carton, item of luggage, container or other thing that may be used in the storage or transport of a good but does not include any article of clothing worn by the person concerned.”.

49. Rates of tobacco products tax

49. The Finance Act 2005 is amended with effect as on and from 11 October 2017 by substituting the following for Schedule 2 (as amended by section 36 of the Finance Act 2016 (No. 18 of 2016)) to that Act:

“SCHEDULE 2

Rates of Tobacco Products Tax

(With effect as on and from 11 October 2017)

Description of Product	Rate of Tax
Cigarettes .... .... .... ....	Rate of tax at—
	(a) except where paragraph (b) applies, €309. 04 per thousand together with an amount equal to 9. 04 per cent of the price at which the cigarettes are sold by retail, or
	(b) €344. 07 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 €355. 238 per kilogram.
Fine-cut tobacco for the rolling of cigarettes .... .... .... ....	Rate of tax at €335.342 per kilogram.
Other smoking tobacco.... ....	Rate of tax at €246.449 per kilogram.

”.

50. Amendment of Chapter 1 of Part 2 of Finance Act 2002 (consolidation and modernisation of betting duties law)

50. Chapter 1 of Part 2 of the Finance Act 2002 is amended—

(a) in section 64, by inserting the following after the definition of “remote bookmaker’s licence”:

“ ‘remote means’ has the same meaning as it has in section 1 of the Betting Act 1931;”,

and

(b) in section 68(1)(b), by substituting “remote means” for “any means of telecommunications”.

51. Amendment of section 137A of Finance Act 2001 (substitute fuels)

51. Section 137A of the Finance Act 2001 is amended in subsection (4)(b) by inserting “or an additive” after “fuel”.

52. Amendment of section 99A of Finance Act 1999 (relief for qualifying road transport operators)

52. Section 99A(5) of the Finance Act 1999 is amended—

(a) in paragraph (b) by substituting “obligations,” for “obligations, or,”,

(b) in paragraph (c) by substituting “obligations, or” for “obligations.”, and

“(d) the qualifying road transport operator is regarded as an undertaking in difficulty for the purposes of the Commission Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty [^18].”.

53. Amendment of section 130 of Finance Act 1992 (interpretation)

53. (1) Section 130 of the Finance Act 1992 is amended—

(a) by substituting the following for the definition of “category A vehicle”:

“ ‘category A vehicle’ means—

(a) a category M1 vehicle, or

(b) a category N1 vehicle, that has 4 or more seats and to which a BE bodywork code has not been assigned;”,

(b) by substituting the following for the definition of “category B vehicle”:

“ ‘category B vehicle’ means—

(a) a category N1 vehicle that has 3 seats or less,

(b) a category N1 vehicle to which a BE bodywork code has been assigned, or

and

“ ‘BE bodywork code’ means a bodywork code assigned to a vehicle at type approval stage where—

(a) the vehicle has a maximum mass not exceeding 3,500 kilograms, and

(b) the seating positions and the cargo area of the vehicle are not located in a single compartment;”.

(2) Subsection (1) shall come into operation on 31 July 2018.

54. Amendment of section 135D of Finance Act 1992 (repayment of amounts of vehicle registration tax on export of certain vehicles)

54. Section 135D of the Finance Act 1992 is amended in subsection (2) by—

(a) deleting “and” in paragraph (a),

(b) substituting “section 141, and” for “section 141.” in paragraph (b), and

“(c) notwithstanding paragraph (a), not exceed the amount of vehicle registration tax paid on the registration of the vehicle under section 131.”.

PART 3 Value-Added Tax

55. **Interpretation (Part 3)**

55. In this Part “Principal Act” means the Value-Added Tax Consolidation Act 2010.

56. Amendment of Schedule 3 to Principal Act (goods and services chargeable at the reduced rate)

56. Schedule 3 to the Principal Act is amended in paragraph 21, with effect from 1 January 2018, by substituting the following for subparagraph (1):

“(1) Services consisting of the care of the human body, including services supplied in the course of a health studio business or similar business, but excluding the following:

(a) exempted activities referred to in Part 1 of Schedule 1;

(b) hairdressing services referred to in paragraph 13(3);

57. Exempted education activities

57. The Principal Act is amended—

(a) in section 120, by inserting the following after subsection (13):

“(13A) As regards paragraph 4(3) of Schedule 1, regulations may—

(a) provide for the conditions under which training or retraining services may or may not be treated as vocational training or retraining services,

(b) specify the bodies which provide Exchequer funding to providers for the purposes of providing education or vocational training or retraining,

(c) provide for the conditions under which education provided to children or young people which, if provided by a recognised school within the meaning of section 10 of the Education Act 1998, would be the curriculum determined by the Minister for Education and Skills in accordance with that Act.”,

and

(b) in paragraph 4 of Schedule 1, by substituting the following subparagraph for subparagraph (3):

“(3) (a) The provision of—

(i) children’s or young people’s education, school or university education, or

(ii) vocational training or retraining (subject to any conditions as may be specified in regulations),

including the supply of goods and services incidental to that provision, other than the supply of research services, but excluding instruction in the driving of mechanically propelled road vehicles other than the instruction of a kind to which clause (c) relates, by—

(I) a public body,

(II) a provider in receipt of Exchequer funds for the purposes of that provision from a body specified in regulations,

(III) a recognised school within the meaning of the Education Act 1998,

(IV) a college within the meaning of section 2 of the Regional Technical Colleges Act 1992, or

(V) a university mentioned in section 3 of the Universities Act 1997.

(b) The provision by a body of any of the following:

(i) a programme of education and training within the meaning of the Qualifications and Quality Assurance (Education and Training) Act 2012 which is validated under section 45 of that Act;

(ii) a course which is considered by the Minister for Justice and Equality as an acceptable basis for the granting of an immigration permission, where such body is included on a list published by that Minister;

(iii) a course accredited by an approved college, within the meaning assigned by section 473A of the Taxes Consolidation Act 1997;

(iv) education to children or young people which, if provided by a recognised school within the meaning of section 10 of the Education Act 1998, would be the curriculum determined by the Minister for Education and Skills in accordance with that Act (subject to any conditions as may be specified in regulations);

(v) vocational training or retraining (subject to any conditions as may be specified in regulations),

(i) vehicles designed or constructed for the carriage of 1. 5 tonnes of goods or more;

(ii) vehicles designed or constructed for the carriage of more than 9 persons (including the driver).”.

58. Miscellaneous amendments to Principal Act

58. The Principal Act is amended—

(a) in section 2, by inserting the following before the definition of “customs-free airport”:

“ ‘Customs Acts’ has the meaning given to it by section 2(3) of the Customs Act 2015;”,

(b) in section 11(2)(b), by substituting “Chapters 2A and 2B of Part 2 of Finance Act 2001” for “Chapter II of Part II of the Finance Act 1992”,

(c) in section 53(3), by substituting “Customs Acts” for “Customs Consolidation Act 1876, and other law in force in the State relating to customs,”,

(d) in section 66(4C)(b), by substituting “section 71” for “section 71(1)”,

(e) in section 101(6), by deleting paragraph (ba),

(f) in section 116(22), by substituting “officer of Customs” for “officer of Customs and Excise”,

(g) in section 120(18), by deleting paragraph (a),

(h) in paragraph 4(4) of Schedule 1, by substituting “Tuition” for “tuition”,

(i) in paragraph 17 of Schedule 3, by substituting the following for subparagraph (3)(a):

“(a) ‘vehicle gas’ within the meaning of section 94(1) of the Finance Act 1999,

(aa) ‘liquefied petroleum gas’ within the meaning of section 94(1) of the Finance Act 1999 when used or intended for use as a ‘propellant’ within the meaning of that section,”,

and

(j) in paragraph 21(5) of Schedule 3, by substituting “paragraph 4(3)(c) of Schedule 1” for “paragraph 4(3) of Schedule 1”.

PART 4 Stamp Duties

59. **Interpretation (Part 4)**

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

60. Amendment of Schedule 1 to Principal Act (stamp duties on instruments)

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

(a) in the heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance.”—

(i) in paragraph (4), by substituting “6 per cent” for “2 per cent”, and

(ii) in paragraph (5)(a)(ii)—

(I) by substituting “1 January 2021” for “1 January 2018”,

(II) by deleting “and the individual by whom the farm is being conveyed or transferred has not, at the date of conveyance or transfer attained the age of 67 years”, and

(III) by substituting “1 per cent of the consideration which is attributable to property which is not residential property” for “a duty of an amount equal to one-half of the ad valorem stamp duty which, but for the provisions of this paragraph, would be chargeable under this heading”,

and

(b) in the heading “LEASE.”—

(i) in paragraph (1), by substituting “€40,000” for “€30,000”, and

(ii) in paragraph (3)(b), by substituting “6 per cent” for “2 per cent”.

(2) Subsection (1)(a)(i) and (a)(ii)(III) and (b)(ii)—

(a) shall have effect as respects instruments executed on or after 11 October 2017, and

(b) shall not have effect as respects any instrument executed before 1 January 2018, where—

(i) the effect of the application of subsection (1) would be to increase the duty otherwise chargeable on the instrument, and

(ii) the instrument contains a statement, in such form as the Revenue Commissioners may specify, certifying that the instrument was executed solely in pursuance of a binding contract entered into before 11 October 2017.

(3) Subsection (1)(a)(ii)(I) and (II) and (b)(i) come into operation on the passing of this Act.

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

61. Repayment of stamp duty where land used for residential development

61. The Principal Act is amended by inserting the following section after section 83C:

“83D. (1) (a) In this section—

‘appropriate part’, in relation to land, means the whole or, as the case may be, the part of the land to which the relevant residential development, the subject of a claim for repayment under this section, relates;

‘building control authority’ has the meaning given to it by section 2 of the Building Control Act 1990;

‘completion certificate’ means a Certificate of Compliance (within the meaning of article 5 of the Regulations of 1997)—

(a) submitted on completion to a building control authority, and

(b) the particulars of which are entered by that authority on the register maintained under Part IV of the Regulations of 1997,

in accordance with article 20F of those Regulations;

‘commencement notice’ means—

(a) a commencement notice within the meaning of article 8, or

(b) a 7 day notice (within the meaning of article 5 of the Regulations of 1997) required under article 20A of the Regulations of 1997,

that is acknowledged by a building control authority in accordance with article 10(2) or 20A(3), as the case may be, of those Regulations;

‘construction operations’, in relation to a residential development or relevant residential development, means the construction of buildings or structures including the preparatory operations of site clearance, drainage, earth-moving, excavation, laying of foundations and the provision of roadways and other access works;

‘dwelling unit’ means—

(a) a building or part of a building used or suitable for use as a dwelling, and

(b) the curtilage of the dwelling, up to an area (exclusive of the site of the dwelling unit) of 0.4047 hectares;

‘gross floor space’ in relation to a dwelling unit means the area ascertained by the internal measurement of the floor space on each floor of a building, including internal walls and partitions;

‘land’, where used without qualification, means the land that is conveyed or transferred by an instrument;

‘planning permission’ has the meaning given to it by section 2 of the Planning and Development Act 2000;

‘Regulations of 1997’ means the Building Control Regulations 1997 (S.I. No. 496 of 1997);

‘residential development’ means the construction of one or more dwelling units and references to ‘relevant residential development’ shall be construed in accordance with paragraph (b).

(b) References in this section to ‘relevant residential development’ shall be construed—

(i) in a case in which a claim for a repayment under subsection (8) is, pursuant to subsection (7)(b), made in respect of such of the construction operations as for the time being are being carried out pursuant to a particular commencement notice, as references to the residential development that comprises those construction operations, or

(ii) in either—

(I) a case in which, as mentioned in subsection (7)(b), the making of a claim for repayment under subsection (8) is deferred until completion of the residential development concerned, or

(II) a case in which the residential development concerned is not carried out in a phased manner,

as references to the entire of the residential development concerned.

(c) Without prejudice to subsection (4)(i), for the purposes of this section relevant residential development shall be regarded as completed if there exists in respect of the development a completion certificate.

(2) In this section a reference to an instrument is a reference to an instrument executed on or after 11 October 2017 that has been stamped in accordance with paragraph (4) of the heading in Schedule 1 titled ‘CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance.’ where—

(a) the instrument was chargeable to stamp duty at a rate of 6 per cent, and

(b) the property so conveyed or transferred was land.

(3) (a) Subject to subsection (18) and the other provisions of this section, stamp duty paid on an instrument may be repaid in accordance with this section in relation to the land if construction operations on the land commence pursuant to a commencement notice within the period of 30 months following the date of execution of the instrument.

(c) Notwithstanding paragraph (a), the stamp duty repaid under this section shall be liable to the clawback provided for in subsection (12) if—

(i) the relevant residential development specified in a commencement notice is not completed within the period of 2 years after the date of the sending by a building control authority, in accordance with article 10(2) or 20A(3)(b), as the case may be, of the Regulations of 1997, of an acknowledgment in relation to that notice, or

(ii) when completed, the relevant residential development on the land, being the land to which that relevant residential development relates, is not such that—

(I) at least 75 per cent of the total surface area of that land is occupied by dwelling units, or

(II) the gross floor space of dwelling units amounts to at least 75 per cent of the total surface area of that land,

and subparagraphs (i) and (ii) are subsequently referred to in this section as the conditions for the avoidance of a clawback under this paragraph.

(4) Where—

(a) the land is acquired for the purpose of constructing a single dwelling unit, and

(b) a declaration of intention to opt out of statutory certification submitted in accordance with article 9(5) of the Regulations of 1997 has been included on the public register in accordance with paragraph (10) of article 20F of those Regulations,

then—

(i) the dwelling unit specified in a commencement notice shall, for the purposes of this section, be treated as completed when a completion certificate is issued under subsection (13) or (14) of section 9D of the Electricity Regulation Act 1999 not later than 2 years after the date of sending by a building control authority, in accordance with article 10(2) or 20A(3)(b), as the case may be, of the Regulations of 1997, of an acknowledgment in relation to that commencement notice, and

(ii) subsection (3)(c)(ii) shall not apply.

(5) (a) Where the satisfaction of any of the following—

(i) the condition specified in paragraph (a) of subsection (3),

(ii) the conditions for the avoidance of a clawback under paragraph (c) of that subsection, or

(iii) the condition specified in subsection (4)(i),

is prevented by—

(I) an appeal made under section 7 of the Building Control Act 1990, or

(II) an order made by a court requiring that construction operations cease to be carried out,

the period commencing on the making of the appeal or the making of the order by the court and ending on the determination of the appeal or the discharge of the order shall not be reckoned for the purpose of computing the period of 30 months specified in subsection (3)(a) or the period of 2 years specified in subsection (3)(c)(i) or (4)(i).

(b) Subsection (18) shall apply notwithstanding the effect provided for by paragraph (a) in relation to the periods referred to in that paragraph.

(6) (a) The amount to be repaid in accordance with this section shall be determined by the formula—

A x B x

where—

A is the amount of stamp duty paid, at the rate of 6 per cent, on the instrument, and

B is the proportion of the area of the land represented by the appropriate part, expressed as a fraction.

(b) In relation to the construction of a single dwelling unit—

(i) a claim for a repayment under this section shall not include any stamp duty attributable to any part of the land not occupied by the dwelling unit, and

(ii) for the purposes of the formula in paragraph (a), B is the proportion of the land occupied by the dwelling unit.

(7) (a) A claim for a repayment under this section shall be made in accordance with subsection (8).

(b) If the residential development concerned is carried out in a phased manner such that there are 2 or more commencement notices in respect of the construction operations on the land, subsection (8) shall, without prejudice to the accountable person’s right to defer making a claim until completion of the residential development concerned, be construed as enabling a claim to be made in respect of such of the construction operations as for the time being are being carried out pursuant to a particular commencement notice.

(8) A claim for a repayment under this section shall—

(a) be made by an accountable person,

(b) without prejudice to paragraph (d), be made in a form and manner specified by the Commissioners,

(i) that the condition specified in subsection (3)(a) has been satisfied, and

(ii) where a claim relates to a part of the stamp duty paid on the stamping of an instrument, the proportion of the area of the land represented by the appropriate part, or as the case may be, the proportion of the land occupied by the single dwelling unit,

(d) be made by electronic means and through such electronic systems as the Commissioners may make available for the time being for any such purpose, and the relevant provisions of Chapter 6 of Part 38 of the Taxes Consolidation Act 1997 shall apply,

(e) not be made until such time as construction operations have commenced pursuant to a commencement notice.

(9) For the purposes of satisfying themselves that either the conditions for the making of a repayment under this section or the conditions for the avoidance of a clawback under paragraph (c) of subsection (3) are satisfied, the Commissioners may specify documents and particulars to be submitted by an accountable person, including the following:

(a) a copy of any commencement notice;

(b) a copy of any acknowledgement sent by a building control authority in accordance with article 10(2) or 20A(3)(b), as the case may be, of the Regulations of 1997;

(d) the number and gross floor space of dwelling units constructed; and

(e) the area of the land expressed in hectares.

(10) Subject to the requirements of this section, a repayment of stamp duty under this section shall—

(a) be made by the Commissioners pursuant to a claim made in accordance with subsection (8),

(b) not carry interest, and

(c) not be made after the expiry of 4 years following, in relation to the relevant residential development, the date of acknowledgement by a building control authority in accordance with article 10(2) or 20A(3)(b), as the case may be, of the Regulations of 1997 and this paragraph applies notwithstanding anything in subsection (7)(b).

(11) (a) Where the Commissioners are of the opinion that the requirements of this section have not been met in relation to a claim for repayment, they shall decide to refuse the claim and shall notify the claimant in writing of the decision and the reasons for it.

(b) An accountable person aggrieved by a decision to refuse a claim for repayment, may appeal to the Appeal Commissioners against the decision in accordance with section 949I of the Taxes Consolidation Act 1997, within the period of 30 days after the date of the notification of the decision.

(12) (a) In either a case in which any of the requirements of this section in relation to an accountable person’s eligibility for a repayment of stamp duty are not met or the conditions specified in paragraph (c) of subsection (3) for the avoidance of a clawback under that paragraph are not satisfied, an accountable person shall be liable to pay to the Commissioners the stamp duty that had been repaid under subsection (10) to the accountable person (and that stamp duty to which the foregoing liability attaches is referred to in this section as a ‘clawback’).

(b) Interest shall be payable on the clawback calculated in accordance with section 159D from the date on which the repayment was made to the date of payment of the clawback to the Commissioners.

(13) (a) Where an accountable person fails to pay the clawback, the Commissioners may make an assessment of the amount of the stamp duty concerned as if the failure to pay were a failure to deliver a return under section 20(2).

(b) Where there is more than one accountable person in relation to an instrument and a clawback, they shall be liable jointly and severally whether or not an assessment is made.

(14) For the purposes of this section, section 128A shall apply as if the period of 6 years referred to in subsection (4) of that section commenced on the date of acknowledgement, in relation to the residential development concerned, by a building control authority in accordance with article 10(2) or 20A(3)(b), as the case may be, of the Regulations of 1997.

(15) The submission to the Commissioners of an incorrect statement, document or particulars under this section shall be deemed to constitute the delivery of an incorrect statement for the purposes of section 1078(2) of the Taxes Consolidation Act 1997.

(16) (a) Where a repayment has been made under this section and it is subsequently found that a declaration made in accordance with subsection (8)—

(i) was untrue in any material particular that would have resulted in a repayment, or part of a repayment, allowed by this section not being made, and

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

then the person who made such a declaration shall be liable to pay to the Commissioners as a penalty an amount equal to 125 per cent of the stamp duty that would not have been repaid had all the facts been truthfully declared, together with interest charged on that amount as may so become payable, calculated in accordance with section 159D, from the date on which the repayment was made to the date the penalty is paid.

(b) A person shall not be liable to a clawback under subsection (12), or a penalty under paragraph (a), as the case may be, if and to the extent that such person has paid—

(i) a penalty under paragraph (a), or

(ii) a clawback under subsection (12).

(17) (a) Notwithstanding any enactment or rule of law, the Commissioners may, by notice in writing, request a building control authority to provide them with such information as is in the possession or control of the building control authority as the Commissioners may reasonably require for the purposes of verifying—

(i) that a thing referred to in the definition of ‘commencement notice’ in subsection (1)(a) exists or has been done,

(ii) the commencement of construction operations,

(iii) the completion of residential development, or

(iv) the proportion of the land occupied by dwelling units.

(b) Where the Commissioners make a request under paragraph (a), the building control authority concerned shall provide such information as may be specified in the notice within the period specified in the notice which period, in any case, shall not be less than 30 days.

(c) Taxpayer information within the meaning of section 851A(1) of the Taxes Consolidation Act 1997 may be disclosed by an officer of the Revenue Commissioners to a building control authority for the purposes of enabling the building control authority to comply with a request made under paragraph (a).

(18) This section shall not apply to construction operations comprising relevant residential development commenced, pursuant to a commencement notice, after 31 December 2021.”.

62. Shares deriving value from immovable property situated in State

62. (1) The Principal Act is amended—

(a) by inserting the following section after section 31B:

“Shares deriving value from immovable property situated in State

31C. (1) (a) In this section—

‘Act of 1997’ means the Taxes Consolidation Act 1997;

‘arrangement’ includes any agreement, understanding, scheme, transaction or series of transactions;

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

‘connected person’ has the same meaning as in section 10 of the Act of 1997 and a person who is connected shall be construed accordingly;

‘development’, in relation to immovable property, means—

(a) the construction, demolition, extension, reconstruction of, or the material alteration or refurbishment of, any building, or

(b) the carrying out of any engineering or other operation to adapt the immovable property for materially altered use, and developed and developing shall be construed accordingly;

‘immovable property’ means immovable property situated in the State that is not residential property;

‘interest’, in relation to a partnership, means a partner’s share or interest in a partnership;

‘IREF’, subject to paragraph (b), has the same meaning as in section 739K(1) of the Act of 1997;

‘units’ has the same meaning as in section 88(1)(a).

(b) For the purposes of the definition of ‘IREF’ in paragraph (a), the definition of ‘IREF’ in section 739K(1) of the Act of 1997 shall be read as if there were inserted after the words ‘investment undertaking’ in the first four places where they occur the words ‘or collective investment scheme to which section 88(1)(b)(ii) applies’.

(c) For the purposes of this section, where a company, IREF, partnership or a connected person secures the development of any immovable property, the company, IREF or partnership shall be regarded as developing that immovable property.

(d) For the purposes of this section, if, by any one or more transactions or by any arrangement or scheme, whether concerning the immovable property or stocks, marketable securities, units or interests deriving value from that immovable property, there is a disposal of the immoveable property or a transfer of control over that immoveable property, that disposal or transfer, as the case may be, shall be a disposal for the purposes of this section.

(2) (a) This section applies in relation to—

(i) stocks or marketable securities in a company, other than an investment undertaking within the meaning of section 739B of the Act of 1997 that is not an IREF,

(ii) units in an IREF, or

(iii) interests in a partnership,

that derive their value, or the greater part of their value, directly or indirectly, from immovable property.

(b) For the purposes of paragraph (a), a reference to deriving value indirectly from immovable property shall include value that is derived from stocks, marketable securities, units or interests in relation to which this section applies.

(c) Where the company, IREF or partnership referred to in paragraph (a) (referred to in this subsection as ‘the first-mentioned company, IREF or partnership’) derives its value from stocks, marketable securities, units or interests in a company, IREF or partnership (referred to in this subsection as ‘the second-mentioned company, IREF or partnership’), the circumstances in subsection (6) shall be deemed to apply to the first-mentioned company, IREF or partnership where they apply to the second-mentioned company, IREF or partnership.

(3) Where stocks, marketable securities, units or interests in relation to which this section applies were owned at one time by one person, or by persons who are acting in concert or who are connected persons, and are conveyed or transferred by that person or those persons in parts—

(a) to another person, or

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

whether or not on the same or different occasions, the several conveyances or transfers shall, for the purposes of this section, be treated as a single conveyance or transfer.

(4) Notwithstanding section 88 or the charge to stamp duty applied under the Heading ‘CONVEYANCE or TRANSFER on sale of any stocks or marketable securities’ in Schedule 1, where the circumstances in—

(a) subsection (5), and

(b) subsection (6),

apply, the conveyance or transfer on sale concerned shall be chargeable to stamp duty under paragraph (4) of the Heading ‘CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance.’ in Schedule 1.

(5) The circumstances referred to in subsection (4)(a) are that—

(a) there exists a conveyance or transfer on sale of stocks or marketable securities, units or interests in relation to which this section applies, and

(b) such conveyance or transfer on sale results in a change in the person or persons having direct or indirect control over the immovable property concerned.

(6) The circumstances referred to in subsection (4)(b) are that it would be reasonable to consider that the immovable property concerned—

(a) was acquired by the company, IREF or partnership, as the case may be, with the sole or main object of realising a gain from its disposal,

(b) was or is being developed by the company, IREF or partnership, as the case may be, with the sole or main object of realising a gain from its disposal when developed, or

(c) was held as trading stock (within the meaning of section 89 of the Act of 1997) by the company, IREF or partnership, as the case may be.

(7) Where—

(a) there is a change in the ownership of a company, IREF or partnership in relation to which this section applies that results in a change in the person or persons having direct or indirect control over immovable property,

(b) the circumstances set out in subsection (6) apply to the company, IREF or partnership concerned, and

(c) any contract or agreement relating to stocks, marketable securities, units or interests, giving direct or indirect effect to such change is not otherwise chargeable to stamp duty,

then the contract or agreement shall be treated as a conveyance or transfer on sale for the purposes of subsection (5).

(8) In calculating the part of the value of the stocks, marketable securities, units or interests that is derived, directly or indirectly, from immovable property situated in the State—

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

(i) involves a transfer of money or other assets, apart from immovable property, from a person who is connected with the company, IREF or partnership, as the case may be, in which those stocks, marketable securities, units or interests are held,

(ii) is made before a conveyance or transfer on sale of stocks, marketable securities, units or interests in relation to which this section applies, and

(iii) the main purpose or one of the main purposes of which is the avoidance of liability to any tax or duty,

and

(b) regard shall be had to the gross value of the immovable property from which that value is derived.

(9) Stocks, marketable securities, units or interests in relation to which this section applies shall be deemed to be land for the purposes of subsection (1)(b) of section 83D (inserted by section 61 of the Finance Act 2017) where, following the conveyance or transfer on sale, the immovable property concerned satisfies the conditions for a repayment under that section.”,

and

(b) in section 88(1)(b) by substituting “Subject to subsection (2) and section 31C (inserted by section 62 of the Finance Act 2017)” for “Subject to subsection (2)”.

(2) (a) Subject to paragraph (b), subsection (1) shall have effect as respects any instrument executed on or after 6 December 2017.

(b) Subsection (1) shall not have effect as respects any instrument executed before 1 March 2018, where—

(i) the effect of the application of subsection (1) would be to increase the duty otherwise chargeable on the instrument, and

63. Miscellaneous stamp duty amendments

63. The Principal Act is amended—

(a) in section 1(1), by inserting the following definition:

“ ‘Revenue officer’ means an officer of the Commissioners;”,

(b) in section 14A, by substituting the following for subsection (3):

“(3) Where an accountable person fails to cause the delivery of an electronic return or a paper return in relation to an instrument on or before the specified return date, any amount of stamp duty chargeable which, apart from this section, is contained in an assessment of stamp duty made under section 20 shall be increased by an amount (in this subsection referred to as a ‘surcharge’) equal to—

(a) 5 per cent of that amount of duty, subject to a maximum surcharge of €12,695, where the return is delivered before the expiry of 2 months from the specified return date, and

(b) 10 per cent of that amount of duty, subject to a maximum surcharge of €63,485, where the return is not delivered before the expiry of 2 months from the specified return date.”,

“(10) An assessment of stamp duty shall, where subsection (3) of section 14A applies, include any surcharge within the meaning of that subsection.”,

(d) in section 134A, by inserting the following after subsection (13):

“(14) Subject to section 1077D(2) of the Taxes Consolidation Act 1997, proceedings for the recovery of any penalty under this section shall not be out of time by reason that they are commenced after the time allowed by section 1063 of that Act as applied by section 133.”,

(e) by substituting the following for section 158A:

“158A. (1) Subject to subsection (2), any act to be performed or function to be discharged by the Commissioners under this Act may be performed or discharged by any one or more of their officers acting under their authority.

(2) The general delegation referred to in subsection (1) shall not apply in the case of—

(a) the authorisation of Revenue officers to perform any act or function that requires authorisation to be given by the Commissioners, and

(b) the making of regulations under this Act.”,

and

(f) in section 159C(1), by substituting the following for the definition of “relevant period”:

“ ‘relevant period’, in relation to a relevant instrument, means the period of 4 years commencing on—

(a) (i) subject to paragraph (b), the date the instrument was stamped by the Commissioners,

(ii) the date the statement was delivered to the Commissioners, or

(iii) the date the instruction was made,

(b) the latest date on which all of the conditions were required to be satisfied for a relief or exemption;”.

64. Amendment of section 106B of Principal Act (housing authorities and Affordable Homes Partnership)

64. Section 106B(1) of the Principal Act is amended by substituting the following for paragraph (b):

“(b) the Housing and Sustainable Communities Agency established under Article 4 of the Housing and Sustainable Communities Agency (Establishment) Order 2012 (S.I. No. 264 of 2012).”.

65. Amendments in relation to certain farming reliefs

65. (1) Section 81AA of the Principal Act is amended by substituting the following for subsection (8):

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

(a) it is the intention of the young trained farmer, for a period of 5 years from the date of execution of the instrument to—

(i) spend not less than 50 per cent of his or her normal working time farming the land, and

(ii) retain ownership of the land,

(b) the young trained farmer submits a business plan to Teagasc before the execution of the instrument concerned, and

(c) the young trained farmer comes within the meaning of ‘micro, small and medium-sized enterprises’ in Annex 1 of Commission Regulation (EU) No. 702/2014 of 25 June 2014 [^19].”.

(2) Section 851A(8) of the Taxes Consolidation Act 1997 is amended—

(a) in paragraph (k), by substituting “purpose,” for “purpose, and”,

(b) in paragraph (l), by substituting “Marine,” for “Marine.”, and

“(m) where relief is granted under section 81D of the Stamp Duties Consolidation Act 1999 and the information is disclosed only to the Minister for Agriculture, Food and the Marine for the sole purpose of complying with Commission Regulation (EU) No. 1408/2013 of 18 December 2013 [^20],”.

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

66. Section 79 of the Principal Act is amended—

(a) by inserting the following after subsection (7):

“(7A) Where a transferor—

(a) is liquidated, or

(b) is dissolved without going into liquidation and a conveyance or transfer has been effected as a result of a merger by absorption (within the meaning of section 463 or 1129 of the Companies Act 2014) by reason of which the foregoing dissolution of the transferor has taken place,

the transferor and the transferee shall, for the purposes of subsections (5)(c) and (7)(b), not be regarded as ceasing to be associated where, for a period of 2 years from the date of the conveyance or transfer—

(i) the beneficial interest that was conveyed or transferred from the transferor continues to be held by the transferee, and

(ii) the beneficial ownership of the ordinary share capital of the transferee remains unchanged.

(7B) This section shall not apply unless the conveyance or transfer of a beneficial interest in property, or the liquidation referred to in subsection (7A)(a), is effected for bona fide commercial reasons and does not form part of a scheme or arrangement of which the main purpose, or one of the main purposes, is the avoidance of liability to any tax or duty.”,

and

(b) by inserting the following after subsection (10):

“(11) In the case of—

(a) a merger undertaken in accordance with Chapter 3 of Part 9 of the Companies Act 2014—

(i) the resolution referred to in paragraph (a)(ii) of section 202(1) of that Act, in the case of a merger effected by way of the summary approval procedure (within the meaning of section 202 of that Act), or

(ii) the order made under section 480(2) of that Act, in the case of a merger effected otherwise than by way of the summary approval procedure (within the foregoing meaning),

shall be regarded as a conveyance on sale, or

(b) a merger undertaken in accordance with Chapter 16 of Part 17 of the Companies Act 2014, the order made under section 1144 of that Act shall be regarded as a conveyance on sale.”.

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

67. Section 80 of the Principal Act is amended—

(a) by substituting the following for subsections (1) to (6):

“(1) (a) In this section—

‘acquiring company’ means, subject to paragraph (b), a company with limited liability;

‘merger’ means a merger undertaken in accordance with Chapter 3 of Part 9 or Chapter 16 of Part 17 of the Companies Act 2014;

‘shares’ includes stock;

‘successor company’ and ‘transferor company’ have the meanings given to them by section 461 of the Companies Act 2014;

‘undertaking’ includes part of an undertaking.

(b) References in this section to a company shall be construed as including references to a society registered under the Industrial and Provident Societies Act 1893.

(2) (a) This subsection applies where there is a scheme for the bona fide reconstruction of any company or the amalgamation of any companies and where, in connection with the scheme, the following conditions apply:

(i) a company with limited liability is to be registered, or a company has been established by Act of the Oireachtas, or the nominal share capital of a company has been increased,

(ii) the company (in this section referred to as the ‘acquiring company’) is to be registered or has been established or has increased its capital with a view to the acquisition of either—

(I) the undertaking of a particular existing company (in this section referred to as the ‘target company’), or

(II) not less than 90 per cent of the issued share capital of a target company,

and

(iii) the consideration for the acquisition (except such part of that consideration as consists in the transfer to or discharge by the acquiring company of liabilities of the target company) consists as to not less than 90 per cent of that consideration—

(I) where an undertaking is to be acquired, in the issue of shares in the acquiring company to the target company or to holders of shares in the target company, or

(II) where shares are to be acquired, in the issue of shares in the acquiring company to the holders of shares in the target company in exchange for the shares held by them in the target company.

(b) For the purposes of paragraph (a)(i) in so far as it relates to a company with limited liability that is to be registered, a company with limited liability does not include a private company limited by shares to which Part 2 of the Companies Act 2014 applies.

(c) For the purposes of paragraph (a)(i), a company that has issued any share capital shall be treated as if it had increased its nominal share capital.

(3) Subsection (2) shall not apply unless—

(a) it is provided by the memorandum of association of the acquiring company or the Act establishing the acquiring company that one of the objects for which the company is formed is the acquisition of the undertaking of, or shares in, the target company, or

(b) it appears from the resolution, Act or other authority for the increase of the capital of the acquiring company that the increase is authorised for the purpose of acquiring the undertaking of, or shares in, the target company.

(4) This subsection applies where—

(a) a merger is undertaken, and

(b) the successor company is a private company limited by shares, a designated activity company or a public limited company that is not an investment company within the meaning of section 2, 963 or 1001, respectively, of the Companies Act 2014.

(5) Where subsection (2) or (4) applies, and subject to this section, stamp duty under the following headings in Schedule 1—

(a) ‘CONVEYANCE or TRANSFER on sale of any stocks or marketable securities.’,

(b) ‘CONVEYANCE or TRANSFER on sale of a policy of insurance or a policy of life insurance where the risk to which the policy relates is located in the State.’, or

(c) ‘CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance.’,

shall not be chargeable on any instrument made for the purposes of or in connection with—

(i) the transfer of the undertaking or shares, or

(ii) the assignment of any debts, whether such debts are debts of the target company assigned to the acquiring company or, as the case may be, debts of the transferor company assigned to the successor company as a result of the merger.

(6) In the case of an instrument made for the purposes of or in connection with a transfer to a company (within the meaning of the Companies Act 2014), subsection (5) shall not apply unless the instrument is executed within the period of 12 months from the date of the registration of the acquiring company or the date of the resolution to increase the nominal share capital of the acquiring company.

(7) (a) This subsection applies to any property, an instrument for the conveyance of which is chargeable to stamp duty under or by reference to the following heading in Schedule 1, namely: ‘CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance.’.

(b) Subsection (5) shall not apply to an instrument made for the purposes of or in connection with the transfer of an undertaking that includes any property to which this subsection applies, where a conveyance of that property has not been obtained by, as the case may be, the target company or the transferor company prior to the date of the execution of the instrument.”,

(b) in subsection (8)—

(i) in paragraphs (b) and (c) by substituting “, liquidation or merger” for “or liquidation”, and

(ii) by substituting “subsection (5)” for “subsection (2)”,

and

“(11) In the case of—

(a) a merger undertaken in accordance with Chapter 3 of Part 9 of the Companies Act 2014—

(ii) the order made under section 480(2) of that Act, in the case of a merger effected otherwise than by way of the summary approval procedure (within the foregoing meaning),

shall be regarded as a conveyance on sale, or

(b) a merger undertaken in accordance with Chapter 16 of Part 17 of the Companies Act 2014, the order made under section 1144 of that Act shall be regarded as a conveyance on sale.

(12) This section shall not apply unless the scheme of reconstruction or amalgamation or the merger is effected for bona fide commercial reasons and does not form part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to any tax or duty.”.

68. Farm consolidation relief

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

(a) by substituting “24 months” for “18 months” in each place where it occurs,

(b) in subsection (1)(a)—

(i) by deleting the definition of “PPS Number”, and

(ii) in the definition of “relevant period”—

(I) by substituting “1 January 2018” for “1 July 2007”, and

(II) by substituting “31 December 2020” for “30 June 2009”,

(c) in subsection (3), by substituting “at the rate of one per cent on an instrument executed on or after 1 January 2018” for “on the instrument”,

(d) by substituting the following subsection for subsection (6):

“(6) A claim for relief under subsection (3) or a claim for relief by way of repayment under subsection (5), made to the Commissioners under this section, shall be allowed where it is the intention of the person purchasing the land to—

(a) retain ownership of his or her interest in the qualifying land, and

(b) use the qualifying land for farming,

for a period of not less than 5 years from the date on which the first claim for relief in respect of the qualifying land is made.”,

(e) by substituting the following subsection for subsection (7):

“(7) This section shall not apply to an instrument unless it contains a certificate, by the person or persons to whom the land is conveyed or transferred by the instrument, to the effect that that person is or those persons are, as the case may be, entitled to claim relief in accordance with this section.”,

(f) by deleting subsection (8),

(g) in subsection (9)(c)—

(i) by substituting “a certificate referred to in subsection (7)” for “a declaration referred to in paragraph (d) or (e) of subsection (6)”,

(ii) by substituting “the person or persons to whom the land is conveyed or transferred by the instrument” for “the person or persons who made such a declaration”, and

(iii) by deleting “due to all the facts not having been truthfully declared”,

(h) by deleting subsection (9)(d),

(i) in subsection (10)—

(i) in paragraph (b), by substituting “under paragraph (a) or (c)” for “under paragraph (a), (c) or (d)”,

(ii) in paragraph (c), by substituting “under paragraph (c) of subsection (9), and” for “under paragraph (c) or (d) of subsection (9),”,

(iii) in paragraph (d), by substituting “under paragraph (a) of subsection (9).” for “under paragraph (a) or (d), as the case may be, of subsection (9), and”, and

(iv) by deleting paragraph (e),

and

(j) in subsection (12)—

(i) by substituting “1 January 2018” for “1 July 2007”, and

(ii) by substituting “31 December 2020” for “30 June 2011”.

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

PART 5 Capital Acquisitions Tax

69. **Interpretation (Part 5)**

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

70. Amendment of section 85 of Principal Act (exemption relating to retirement benefits)

70. Section 85 of the Principal Act is amended in subsection (1)—

(a) in paragraph (a) by substituting “Taxes Consolidation Act 1997,” for “Taxes Consolidation Act 1997, or”,

(b) in paragraph (b)—

(i) by substituting “under subsection (4) or (4B), as the case may be, of section 787G of that Act” for “under section 787G(4) of that Act”, and

(ii) by substituting “to an individual, or” for “to an individual,”,

and

“(c) a vested RAC within the meaning of section 787O(1) of the Taxes Consolidation Act 1997,”.

71. Amendment of section 86 of Principal Act (exemption relating to certain dwellings)

71. Section 86 of the Principal Act is amended—

(a) by substituting the following for subsection (5):

“(5) For the purposes of subsection (4), a dwelling house shall not be regarded as a relevant dwelling house where it is taken—

(a) by way of a gift, or

(b) under a disposition referred to in paragraph (c) of section 3(1),

unless it is taken by a dependent relative under subsection (9).”,

and

(b) in subsection (9)(c) by inserting “or inheritance” after “a gift”.

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

72. Section 89 of the Principal Act is amended by inserting the following after subsection (1A):

“(1B) (a) In this subsection—

(i) ‘solar panel’ means ground-mounted equipment used to capture solar energy and convert it into electrical energy together with ancillary equipment used to harness, store and transfer the electrical energy;

(ii) a reference to ‘agricultural land’ is to agricultural land comprised in a gift or inheritance.

(b) Notwithstanding that solar panels are installed on agricultural land, subject to paragraph (d), the land shall be regarded as agricultural land for the purposes of the definition of ‘agricultural property’ in subsection (1).

(c) Where agricultural land on which solar panels are installed is leased, subject to the conditions specified in paragraph (iii) of subsection (1)—

(i) the lessor shall be regarded as having leased the whole or substantially the whole of the agricultural property where less than this amount has been leased, and

(ii) the lessee shall be regarded as satisfying the conditions specified in paragraph (i) or (ii) of subsection (1), as the case may be.

(d) Paragraphs (b) and (c) shall not apply where—

(i) solar panels are installed on more than half the total area of the agricultural land concerned, or

(ii) in relation to the individual referred to in the definition of ‘farmer’ in subsection (1), the conditions specified in paragraph (i), (ii) or (iii) of subsection (1), as the case may be, are not satisfied with regard to the agricultural land on which solar panels are not installed.”.

PART 6 Miscellaneous

73. **Interpretation (Part 6)**

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

74. Amendment of section 122 of Principal Act (preferential loan arrangements)

74. Section 122 of the Principal Act is amended by substituting the following for subsection (2):

“(2) Where, for the whole or part of a year of assessment, there is outstanding, in relation to an individual, a preferential loan, the individual shall, subject to subsection (4), be treated for the purposes of section 112 or a charge to tax under Case III of Schedule D, as having received in that year of assessment, as a perquisite of the office or employment with the employer who made the loan, a sum equal to the difference between the aggregate amount of interest paid in that year and the amount of interest which would have been payable in that year, if interest had been payable on the loan at the specified rate and the individual or, in the case of an individual—

(a) who is a wife or husband whose spouse is chargeable to tax for the year of assessment in accordance with the provisions of Chapter 1 of Part 44, the spouse of the individual, or

(b) who is a civil partner whose civil partner is chargeable to tax for the year of assessment in accordance with the provisions of section 1031C, the civil partner of the individual,

shall be charged to tax accordingly.”.

75. Appealable matters

75. The Principal Act is amended to the extent specified in Schedule 3.

76. Taxpayer information

76. Part 37 of the Principal Act is amended—

(a) in section 851A by inserting the following paragraphs after paragraph (m) (inserted by section 65):

“(n) where the taxpayer information is disclosed to an official of the Department of Finance solely—

(i) for the purposes of or in connection with the compliance by the State with its obligations under—

(I) Article 108 of the Treaty on the functioning of the European Union, or

(II) regulations made pursuant to Article 109 of the Treaty on the functioning of the European Union,

(ii) for the purposes of or in connection with the preparation of a response to the exercise by the Commission of the European Union of its functions under—

(I) Articles 107 to 109 of the Treaty on the functioning of the European Union, or

(II) regulations made pursuant to Article 109 of the Treaty on the functioning of the European Union,

and

(o) where the taxpayer information is disclosed to the Commission of the European Union solely for the purposes of or in connection with the compliance by the State with its obligations under—

(i) Article 108 of the Treaty on the functioning of the European Union, or

(ii) regulations made pursuant to Article 109 of the Treaty on the functioning of the European Union.”,

and

(b) by inserting the following section after section 851A:

“Use of, and access to, taxpayer information

851B. (1) In this section—

‘Acts’ has the meaning assigned to it by section 851A;

‘processing’ of, or in relation to, taxpayer information, means performing any operation or set of operations on the information or data, whether or not by automated means, including—

(a) obtaining, recording or keeping the information or data,

(b) collecting, organising, structuring, storing, altering or adapting the information or data,

(d) disclosing the information or data by transmitting, disseminating or otherwise making it available,

(e) aligning, combining, blocking, erasing or destroying the information or data, and

(f) testing, analysing, forecasting, or generalising from the information or data;

‘profiling’ includes any form of processing, whether or not by automated means, of information or data consisting of the use of information or data to evaluate certain personal aspects relating to an individual, in particular to analyse or predict aspects concerning that individual’s economic situation, liability to tax, interests, reliability, behaviour, location or movements;

‘tax’ means any tax, duty, levy or charge under the care and management of the Revenue Commissioners;

‘taxpayer information’ has the meaning assigned to it by section 851A.

(2) Taxpayer information shall be—

(a) processed lawfully and fairly,

(b) collected for one or more specified, explicit and legitimate purposes and not processed in a manner that is incompatible with such purposes,

(d) accurate and, where necessary, kept up to date; every reasonable step shall be taken to ensure that taxpayer information that is inaccurate, having regard to the purposes for which it is processed, is erased without delay or rectified without delay,

(e) kept in a form which permits identification of individuals the subject of the information for no longer than is necessary for the purposes for which the taxpayer information is processed, and

(f) processed in a manner that ensures appropriate security, including protection against unauthorised or unlawful processing and against accidental loss, destruction or damage, using appropriate technical or organisational measures.

(3) Taxpayer information may be processed or profiled where required for the purposes of the following:

(a) carrying out any functions authorised or obligations imposed on the Revenue Commissioners by the Acts;

(b) administering, raising, collecting, receiving and accounting for tax under the care and management of the Revenue Commissioners;

(d) carrying out or assisting in the prevention, investigation, detection or prosecution of offences or the execution of penalties;

(e) safeguarding against, and the prevention of, threats to persons, property or public security.

(4) Individuals shall, on written request, have the right to—

(a) confirmation as to whether taxpayer information of which they are the subject has been processed and the right to access that processed information, and

(b) confirmation as to whether taxpayer information of which they are the subject has been profiled, the right to information on the basis for the profiling and to access the outcome of such profiling,

except where such confirmation or access would, or is likely to, cause prejudice to one or more of the circumstances specified in subsection (5).

(5) The circumstances referred to in subsection (4)(a) and (b) are the following:

(a) the administration, assessment, collection and recovery of tax;

(b) any enquiry or investigation into a liability or liabilities in relation to tax under the Acts or a liability to foreign tax within the meaning of section 912A;

(d) the administration and implementation of customs controls;

(e) where the information was given in confidence or on the understanding that it would be treated as confidential;

(f) where it would be contrary to any other express restrictions imposed by the Acts or by any other enactments.

(6) Refusal of requests made under subsection (5) shall be in writing and shall set out the grounds for refusal.”.

77. PAYE modernisation

77. (1) The Principal Act is amended in the manner and to the extent specified in Schedule 1.

(2) (a) Paragraph 1 and subparagraph (f)of paragraph 4 of Schedule 1 shall apply for the year of assessment 2018 and each subsequent year of assessment in respect of emoluments paid on or after 1 January 2018.

(b) Paragraph 2 of Schedule 1 shall apply for the year of assessment 2019 and each subsequent year of assessment in respect of emoluments paid on or after 1 January 2019.

(c) Paragraph 3 of Schedule 1 shall apply for the year of assessment 2019 and each subsequent year of assessment in respect of an assessment of tax made under section 990 of the Principal Act in respect of an income tax month commencing on 1 January 2019 and each subsequent income tax month.

(d) Paragraph 4 of Schedule 1, other than subparagraphs (f), (m) and (o), shall apply for the income tax month commencing 1 January 2019 and each subsequent income tax month in respect of emoluments paid on or after 1 January 2019.

(e) Subparagraph (m) of paragraph 4 of Schedule 1 shall apply in respect of interest payable on an amount of tax that arises in respect of an income tax month commencing on 1 January 2019 and each subsequent income tax month, and that subparagraph shall not affect the application of the provisions of section 991 of the Principal Act which are amended by that subparagraph as respects liabilities arising in respect of any period prior to 1 January 2019.

78. Amendment of Chapter 4 of Part 38 of Principal Act (Revenue powers)

78. (1) Section 902 of the Principal Act is amended—

(a) by deleting subsection (5), and

(b) in subsection (6) by substituting “the taxpayer concerned shall be notified in writing by the authorised officer of the service of the notice and of the name of the person upon whom it was served” for “a copy of such notice shall be given by the authorised officer to the taxpayer concerned”.

(2) Section 902A of the Principal Act is amended in subsection (3)(ba) by substituting “is likely to lead to serious prejudice to the proper assessment or collection of tax” for “would lead to serious prejudice to the proper assessment or collection of tax”.

(3) Section 906A of the Principal Act is amended—

(a) by deleting subsection (7), and

(b) in subsection (8) by substituting “the taxpayer concerned shall be notified in writing by the authorised officer of the service of the notice and of the name of the person upon whom it was served” for “a copy of such notice shall be given by the authorised officer to the taxpayer concerned”.

(4) Section 908 of the Principal Act is amended in subsection (3)(ba) by substituting “is likely to lead to serious prejudice to the proper assessment or collection of tax” for “would lead to serious prejudice to the proper assessment or collection of tax”.

79. Amendment of section 531AA of Principal Act (interpretation: Part 18C)

79. (1) Section 531AA of the Principal Act is amended—

(a) in subsection (1)—

(i) by deleting the definition of “final decision”, and

(ii) by deleting “and in respect of which a final decision has been made” after “Tax Acts” in the definition of “liability to income tax”,

and

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

“(1A) For the purposes of the definition of ‘world-wide income’ in subsection (1), an individual’s income means the income of an individual before deducting capital allowances and losses.”.

(2) Subsection (1) applies to domicile levy chargeable for the year 2018 and subsequent years.

80. Provision to modify agreements for relief from double taxation

80. (1) Section 826 of the Principal Act is amended by inserting after subsection (1D) the following:

“(1E) Where—

(a) the Government by order declare—

(i) that it has become a signatory to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (in this section referred to as the ‘Multilateral Convention’) which was done at Paris on the 24th day of November 2016, for the purposes of the modification of arrangements of the type specified in subsection (1), such that—

(I) the extent to which the Government wishes to modify each such arrangement is specified in full in the reservations and notifications made to the Secretary-General of the Organisation for Economic Co-operation and Development (in this section referred to as ‘the Depository’) in accordance with the Multilateral Convention,

(II) any such arrangement may only be modified where the government of the territory outside the State with which the arrangement has been made has completed its own internal ratification procedures in relation to the Multilateral Convention and has notified that arrangement to the Depository, and

(III) a provision of any such arrangement may only be modified to the extent that the government of the territory outside the State with which the arrangement has been made has specified the provision in its notifications made to the Depository in accordance with the Multilateral Convention and there is no incompatibility between the specification of that government and the specification made under clause (I),

and

(ii) that it is expedient that the Multilateral Convention should have the force of law,

and

(b) the order so made is referred to in Part 5 of Schedule 24A,

then, this section shall apply with any modifications necessary to give effect to this subsection, and notwithstanding any other enactment, the Multilateral Convention shall have the force of law as if the order were an Act of the Oireachtas on and from the date of the insertion of a reference to the order into Part 5 of Schedule 24A.”.

(2) Schedule 24A to the Principal Act is amended by inserting after Part 4 the following:

“PART 5

Orders Pursuant to Section 826(1E) in Relation to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting”.

(3) This section comes into operation on the passing of this Act.

81. Amendment of Schedule 24A to Principal Act (arrangements made by the Government with the government of any territory outside the State in relation to affording relief from double taxation and exchanging information in relation to tax)

81. Schedule 24A to the Principal Act is amended—

(a) in Part 1 by inserting the following after paragraph 21:

“21A. The Double Taxation Relief (Taxes on Income) (Republic of Kazakhstan) Order 2017 (S.I. No. 479 of 2017).”,

and

(b) in Part 3 by inserting the following after paragraph 8AB:

“8AC. The Exchange of Information Relating to Tax Matters (Macao Special Administrative Region of the People’s Republic of China) Order 2017 (S.I. No. 480 of 2017).”.

82. Consequential amendments to the Acts following enactment of Companies Act 2014

82. (1) In this section “the Acts” means—

(a) the Principal Act,

(b) the statutes relating to the duties of excise and to the management of those duties,

(d) the statutes relating to stamp duty and to the management of that duty,

and any instruments made thereunder.

(2) The Acts are amended in the manner and to the extent specified in Schedule 2.

(3) The following provisions of Schedule 2 are deemed to have come into operation on 1 June 2015:

(a) paragraph 1(a) to (y), (aa), (ac), (ad)(i) and (ae) to (bj);

(b) paragraph 2; and

(4) Paragraph 1(z), (ab) and (ad)(ii) of Schedule 2 are deemed to apply to disposals made on or after 1 June 2015.

(5) Paragraph 3 of Schedule 2 is deemed to have come into operation on 1 December 2016.

83. Mergers, divisions and transfers of assets

83. (1) The Principal Act is amended in Part 21—

(a) before section 630 by re-titling Part 21 as:

“PART 21

Provisions Relating to Mergers, Divisions and Transfers of Assets”,

(b) by inserting the following after the title to Part 21 (inserted by paragraph (a)):

“Chapter 1

Mergers, divisions, transfers of assets and exchanges of shares concerning companies of different Member States”,

(c) in sections 630, 637(1)(b) and 638(1) by substituting “this Chapter” for “this Part” in each place where it occurs, and

(d) by inserting the following Chapter after Chapter 1 (inserted by paragraph (b)):

“Chapter 2

Mergers and divisions pursuant to Companies Act 2014

Company mergers and divisions

638A. (1) In this section—

‘division’ means a division undertaken in accordance with Chapter 4 of Part 9 or, as the case may be, Chapter 17 of Part 17 of the Companies Act 2014;

‘merger’ means a merger undertaken in accordance with Chapter 3 of Part 9 or, as the case may be, Chapter 16 of Part 17 of the Companies Act 2014;

‘successor company’ means a company to which assets and liabilities have been transferred from a transferor company as a result of a merger or division;

‘the Acts’ has the meaning assigned to it by section 1077A;

‘transferor company’ means a company from which assets and liabilities have been transferred to a successor company or successor companies as a result of a merger or division.

(2) All liabilities and obligations of, and requirements or things to be fulfilled or done by, a transferor company under Part 38, 41A, 42 or 47, as the case may be, shall for the purposes of the Part concerned be treated as liabilities and obligations of, and requirements or things to be fulfilled or done by, the successor company or successor companies.

(3) In relation to an appeal made under any provision of the Acts by a transferor company or to be made by a successor company, as the case may be, an appeal made by a transferor company shall be treated as an appeal made by the successor company for the purposes of Part 40 or 40A, as the case may be.

(4) Any right of appeal in relation to an appealable matter (as defined in section 949A) conferred on a transferor company shall be treated as conferred on the successor company.”.

(2) This section is deemed to have come into operation on 1 June 2015.

84. Amendment of section 865 of Principal Act (repayment of tax)

84. (1) Section 865 of the Principal Act is amended by inserting the following subsection after subsection (9):

“(10) (a) In this subsection—

‘successor company’ has the meaning assigned to it by section 638A(1);

‘transferor company’ has the meaning assigned to it by section 638A(1).

(b) Where a transferor company is a person to whom subsection (2) applies, this section shall apply as if any thing done pursuant to it or required to be done pursuant to it by or for such a person or a chargeable person, as the case may be, were, as appropriate—

(i) a thing done pursuant to it, or

(ii) a thing required to be done pursuant to it,

by or for a successor company.

(c) Where there is more than one successor company, any repayment of tax to be made under this section shall, as necessary, be apportioned on a just and reasonable basis.

(d) The amount of any repayment of tax or part repayment of tax to be made to a successor company or successor companies shall not exceed the total amount that would have been made to a transferor company but for the application of this subsection.”.

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