Finance Act 2019

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

“(2A) Notwithstanding anything in subsection (2), as respects the event referred to in paragraph (c) of that subsection, the time immediately before the company referred to in that paragraph ceases to be resident in the State is to be taken as the time at which the company shall be deemed to have disposed of all its assets (other than assets excepted from that paragraph by subsection (6)) and to have immediately reacquired them at their market value.”,

and

(b) in section 629B, by substituting “section 32” for “section 30” in subsection (1).

(2)(a) Subsection (1)(a) shall apply in respect of disposals made on or after 9 October 2019 to which section 627(2) of the Principal Act applies.

(b) Subsection (1)(b) shall be deemed to have applied on and from 10 October 2018.

PART 2 Excise

39. Rates of tobacco products tax

39. The Finance Act 2005 is amended with effect as on and from 9 October 2019 by substituting the following for Schedule 2 (as amended by section 34 of the Finance Act 2018):

“SCHEDULE 2

Rates of Tobacco Products Tax

(With effect as on and from 9 October 2019)

”.

40. Amendment of Chapter 1 of Part 2 of, and Schedules 2 and 2A to, Finance Act 1999 (mineral oil tax)

40. (1) The Finance Act 1999 is amended with effect as on and from 9 October 2019—

(a) in section 96(1B), by substituting “A is the amount to be charged per tonne of CO2 emitted, being €26 in the case of petrol, aviation gasoline, and heavy oil used as a propellant or for air navigation or for private pleasure navigation, and €20 in the case of each other description of mineral oil in Schedule 2A” for “A is the amount, €20, to be charged per tonne of CO2 emitted”,

(b) by substituting the following schedule for Schedule 2:

“SCHEDULE 2

Rates of Mineral Oil Tax

(With effect as on and from 9 October 2019)

”.

(c) by substituting the following schedule for Schedule 2A:

“SCHEDULE 2A

Carbon Charge

(With effect as on and from 9 October 2019)

”.

(2) The Finance Act 1999 is further amended with effect as on and from 1 May 2020—

(a) in section 96(1B) (as amended by subsection (1)(a)), by substituting “A is the amount, €26, to be charged per tonne of CO2 emitted” for “A is the amount to be charged per tonne of CO2 emitted, being €26 in the case of petrol, aviation gasoline, and heavy oil used as a propellant or for air navigation or for private pleasure navigation, and €20 in the case of each other description of mineral oil in Schedule 2A”,

(b) in section 96(1C), by substituting “€0.026” for “€0.02”,

(c) in section 98(1), by substituting—

(i) “€71.32” for “€56.31”, and

(ii) “€48.06” for “€38.44”,

(d) by substituting the following schedule for Schedule 2 (as amended by subsection (1)(b)):

“SCHEDULE 2

Rates of Mineral Oil Tax

(With effect as on and from 1 May 2020)

”.

and

(e) by substituting the following schedule for Schedule 2A (as amended by subsection (1)(c)):

“SCHEDULE 2A

Carbon Charge

(With effect as on and from 1 May 2020)

”.

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

41. Chapter 1 of Part 2 of the Finance Act 1999 is amended with effect as on and from 1 January 2020—

(a) in section 94—

(i) in subsection (1) —

(I) by substituting the following definition for the definition of “combustion in the engine of a motor vehicle”:

“ ‘combustion in the engine’ shall be construed as including internal combustion in such engine and external combustion as fuel for such engine;”,

and

(II) in the definition of “propellant”, by substituting the following for paragraph (a):

“(a) in relation to mineral oil in the State, mineral oil used for combustion in the engine of a motor vehicle or a craft used for private pleasure navigation, or”,

and

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

“(2) (a) In this Chapter ‘fuel tank’ means—

(i) any tank or other vessel in or on a motor vehicle, which is used, or is capable of being used, to supply fuel for combustion in the engine of—

(I) the motor vehicle for the purposes of propulsion of that vehicle, or

(II) another motor vehicle which can provide traction for those purposes,

or

(ii) any tank or other vessel in or on a craft used for private pleasure navigation, which is used, or is capable of being used, to supply fuel for combustion in the engine of the craft for the purposes of propulsion of that craft.

(b) For the purposes of subparagraph (i) of paragraph (a), it shall be presumed, until the contrary is shown, that a tank or other vessel referred to in that subparagraph is capable of being used to supply fuel for the purposes of propulsion if there is any outlet from the tank or vessel other than—

(i) an outlet which is permanently and solely for the supply of fuel for refrigeration, oxygenation, thermal insulation or other specialised systems in or on the motor vehicle, or

(ii) in the case of an oil or gas road tanker, an outlet which is solely for discharging fuel from the tanker.

(c) For the purposes of subparagraph (ii) of paragraph (a), it shall be presumed, until the contrary is shown, that a tank or other vessel referred to in that subparagraph is capable of being used to supply fuel for the purposes of propulsion if there is any outlet from the tank or vessel other than an outlet which is permanently and solely for the supply of fuel for purposes other than as a propellant in or on the craft.”,

(b) in section 96(2A)(a), by substituting “vehicle” for “motor vehicle”,

(c) in section 97A(1), by inserting “up to and including 31 December 2019” after “private pleasure navigation”,

(d) in section 100(4), by substituting the following paragraph for paragraph (c):

“(c) present in the fuel tank of a craft used for private pleasure navigation at the time that craft is brought into the State from another Member State by a private individual, where the mineral oil has, in that Member State, been released for consumption as a propellant, except any such mineral oil that has been marked in accordance with the requirements of that other Member State.”,

(e) in section 102(6)(a) —

(i) in subparagraph (i), by substituting “vehicle” for “motor vehicle”, and

(ii) in subparagraph (ii), by substituting “vehicle” for “motor vehicle”,

and

(f) in section 104(2) —

(i) in paragraph (m), by substituting “as a propellant” for “combustion in the engine of a motor vehicle”, and

(ii) in paragraph (q), by substituting “fuel tank in or on a motor vehicle or a craft used for private pleasure navigation” for “fuel tank in or on a motor vehicle”.

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

42. Section 99A of the Finance Act 1999 is amended by substituting the following for subsection (3):

“(3) Subject to a maximum repayment rate of €75.00 per 1,000 litres, the amount to be repaid per 1,000 litres of gas oil under subsection (2) is determined—

(a) where gas oil has been purchased before 1 January 2020, by the formula—

A = (P - 1,000) x 0.3,

or

(b) where gas oil has been purchased on or after 1 January 2020—

(i) when P is less than or equal to €1,070, by the formula—

A = (P - 1,000) x 0.3,

or

(ii) when P is greater than €1,070, by the formula—

A = 21 + [(P - 1,070) x 0.6],

where—

A is the amount to be repaid per 1,000 litres, and

P is an estimate of the average price (exclusive of value-added tax) in euro per 1,000 litres of gas oil purchased by qualifying road transport operators during the repayment period, as determined in accordance with subsection (4).”.

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

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

(a) in subsection (1)(a), by substituting “50,000 hectolitres” for “40,000 hectolitres”,

(b) in subsection (3)(b)(ii), by substituting “100,000 hectolitres” for “80,000 hectolitres”, and

(c) in subsection (4)(b), by substituting “50,000 hectolitres” for “40,000 hectolitres”.

(2) Subsection (1) shall come into operation on 1 January 2020.

44. Amendment of Schedule 2 to Finance Act 2008 (electricity tax)

44. The Finance Act 2008 is amended by substituting the following schedule for Schedule 2:

“SCHEDULE 2

Rates of Electricity Tax

(With effect as on and from 1 January 2020)

”.

45. Amendment of section 67 of Finance Act 2010 (natural gas carbon tax rate)

45. Section 67 of the Finance Act 2010 is amended with effect as on and from 1 May 2020—

(a) in subsection (1), by substituting “€5.22” for “€4.10”, and

(b) in subsection (3), by substituting “€0.026” for “€0.020”.

46. Amendment of section 78 of, and Schedule 1 to, Finance Act 2010 (solid fuel carbon tax)

46. The Finance Act 2010 is amended with effect as on and from 1 May 2020—

(a) in section 78(3), by substituting “€26” for “€20”, and

(b) by substituting the following for Schedule 1:

“SCHEDULE 1

Rates of Solid Fuel Carbon Tax

(With effect as on and from 1 May 2020)

”.

47. Amendment of Chapter 1 of Part 2 of Finance Act 2002 (betting duty relief)

47. (1) Chapter 1 of Part 2 of the Finance Act 2002 is amended—

(a) in section 64 by inserting the following definitions:

“ ‘accounting period’ means a period of 3 months beginning on the first day of January, April, July or October;

‘aid’ means aid granted in accordance with Commission Regulation (EU) No. 1407/2013;

‘Commission Regulation (EU) No. 1407/2013’ means Commission Regulation (EU) No. 1407/2013 of 18 December 2013[^8] on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid;”,

(b) by inserting the following section after section 68:

“68A. ((1) Subject to such conditions as the Revenue Commissioners may prescribe or otherwise impose, a person liable to betting duty under section 67 or betting intermediary duty under section 67B, or both, may be relieved of such duty provided—

(a) that person is licensed in accordance with section 7, 7B or 7C of the Betting Act 1931, and

(b) he or she holds a current tax clearance certificate issued under section 1094 of the Taxes Consolidation Act 1997,

and provided further that—

(i) without prejudice to paragraph (ii), the amount of such duty that he or she may be relieved of shall not exceed €50,000 in any calendar year, and

(ii) in a case where more than one person forms a single undertaking, as that expression is to be construed by virtue of subsection (2), the total amount of such duty that that single undertaking may be relieved of shall not exceed €50,000 in any calendar year,

and a reference in paragraph (i) or (ii) to duty, where the case is one of liability to both betting duty and betting intermediary duty, is a reference to both those duties, taken together.

(2) For the purposes of subsection (1)(ii) a single undertaking shall have the same meaning as in Article 2 of Commission Regulation (EU) No. 1407/2013.

(3) The amount of the relief provided for in subsection (1) shall be applied proportionally where—

(a) the period of operation of the relief is less than a full calendar year, or

(b) the period of trading by the person is less than a calendar year.

(4) In computing relief due in respect of any accounting period, that relief shall not be carried into the following calendar year.

(5) Subject to such conditions as the Revenue Commissioners may see fit to impose, relief under subsection (1) may be granted by way of remission.

(6) The relief under subsection (1) shall not be applicable where a person—

(a) does not fulfil the conditions laid down in Commission Regulation (EU) No. 1407/2013, or

(b) is in receipt of aid which exceeds the ceiling laid down in that Commission Regulation.

(7) (a) Where a person claims relief under subsection (1) in respect of any accounting period, he or she shall—

(i) specify the amount of relief due on his or her return that is required under section 70 for that accounting period,

(ii) keep records of all reliefs claimed under this section and any other aid of which he or she is in receipt,

(iii) provide such information as required by the Revenue Commissioners in the manner prescribed by them to which Commission Regulation (EU) No. 1407/2013 applies, and

(iv) keep a record of any other information the Revenue Commissioners may deem to be necessary to ensure compliance by the person with Commission Regulation (EU) No. 1407/2013.

(b) A person shall not claim relief under subsection (1) in any calendar year where such a claim would exceed the ceiling laid down in Commission Regulation (EU) No. 1407/2013.

(8) Notwithstanding any obligation to maintain secrecy or any other restriction on the disclosure of information imposed by or under statute or otherwise, the Revenue Commissioners, or any other officer authorised by them for the purposes of this section, may—

(a) disclose to any board established by statute, any other public or local authority or any other agency of the State, information relating to the amount of relief claimed by a person under this section, being information, which is required by the relevant board, authority or agency concerned for the purpose of ensuring that the ceiling of aid in Commission Regulation (EU) No. 1407/2013 is not exceeded, and

(b) provide to the European Commission such information as may be requested by the European Commission in accordance with Article 6 of Commission Regulation (EU) No. 1407/2013.

(9) Any person, or persons that constitute a single undertaking as referred to in subsection (1)(ii), who claims or claim relief under subsection (1) in excess of €50,000 in a calendar year, or in respect of whom the ceiling laid down in Commission Regulation (EU) No. 1407/2013 is exceeded, is or are liable, or in the case of a single undertaking, are jointly and severally liable, for the payment of the duty in excess of the relief permitted.”,

and

(c) in section 77(1) —

(i) in paragraph (b) by deleting “and” where it secondly occurs,

(ii) in paragraph (c) by substituting “them, and” for “them”, and

(iii) by inserting after paragraph (c) the following:

“(d) providing for the methods of charging, securing, collecting, remitting and repaying of duty.”.

(2) Subsection (1) shall come into operation on such day or days as the Minister for Finance may appoint by order or orders, either generally or with respect to different provisions or purposes.

48. Amendment of section 96 of Finance Act 2001 (interpretation (Part 2))

48. (1) Section 96(1) of the Finance Act 2001 is amended, in the definition of “European Union”, by substituting for paragraph (b) the following:

“(b) in the case of Italy, the territory of Livigno,”.

(2) Subsection (1) shall come into operation on 1 January 2020.

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

49. Section 130 of the Finance Act 1992 is amended by inserting the following definitions:

“ ‘certificate of conformity’, notwithstanding any enactment which provides for the continued recognition of certificates issued—

(a) in respect of motor vehicles—

(i) up to 31 August 2020, has the same meaning as in paragraph 36 of Article 3 of Directive 2007/46/EC of the European Parliament and of the Council of 5 September 2007[^9], and

(ii) on and after 1 September 2020, has the same meaning as in paragraph (5) of Article 3 of Regulation (EU) 2018/858 of the European Parliament and of the Council of 30 May 2018[^10],

(b) in respect of agricultural and forestry vehicles, has the same meaning as in Article 3 of Regulation (EU) 167/2013, and

(c) in respect of two- or three-wheeled vehicles and quadricycles, has the same meaning as in Article 3 of Regulation (EU) 168/2013;

‘registration certificate’ has the same meaning as in paragraph (c) of Article 2 of Council Directive 1999/37/EC of 29 April 1999[^11];

‘NOx’ has the same meaning as in paragraph (6) of Article 3 of Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016[^12];”.

50. Amendment of section 132 of Finance Act 1992 (charge of excise duty)

50. (1) Section 132 of the Finance Act 1992 is amended, in subsection (3) —

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

“(a) in case the vehicle the subject of the registration or declaration concerned is a category A vehicle—

(i) in respect of the CO2 emissions of the vehicle—

(I) by reference to Table 1 to this subsection, or

(II) where—

(A) the level of CO2 emissions cannot be confirmed by reference to the relevant EC type-approval certificate, EC certificate of conformity or vehicle registration certificate issued in another Member State, and

(B) the Commissioners are not satisfied of the level of CO2 emissions by reference to any other document produced in support of the declaration for registration,

at the rate of an amount equal to the highest percentage specified in Table 1 to this subsection of the value of the vehicle or €720, whichever is the greater,

and

(ii) in respect of the NOx emissions of the vehicle—

(I) by reference to—

(A) Table 2 to this subsection, and

(B) the unit of measurement used in the relevant EC type-approval certificate, EC certificate of conformity, vehicle registration certificate issued in another Member State or other document produced in support of the declaration for registration, as the case may be,

subject to a maximum of €4,850 in respect of vehicles designed to use heavy oil as a propellant and €600 in respect of all other vehicles, or

(II) where—

(A) the level of NOx emissions cannot be confirmed by reference to the relevant EC type-approval certificate, EC certificate of conformity or vehicle registration certificate issued in another Member State, and

(B) the Commissioners are not satisfied of the level of NOx emissions by reference to any other document produced in support of the declaration for registration,

at the rate €4,850 in respect of vehicles designed to use heavy oil as a propellant and €600 in respect of all other vehicles.”,

(b) by deleting paragraph (aa),

(c) by deleting Table 1 to that subsection,

(d) by designating Table 2 to that subsection as Table 1 to that subsection, and

(e) by inserting the following Table after Table 1 (as that table has been designated under paragraph (d)):

“Table 2

”.

(2) Subsection (1) shall come into operation on 1 January 2020.

51. Amendment of section 135C of Finance Act 1992 (remission or repayment in respect of vehicle registration tax, etc.)

51. ((1) Section 135C of the Finance Act 1992 is amended—

(a) in subsection (1) —

(i) in paragraph (a) —

(I) by substituting “Subject to paragraph (aa), where a person” for “Where a person”,

(II) by substituting “31 December 2020” for “31 December 2019”, and

(III) in subparagraph (i), by substituting “paragraph (a) ” for “paragraph (aa) ”,

and

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

“(aa) Paragraph (a) shall not apply to a category A vehicle or a category B vehicle—

(i) where the level of CO2 emissions of the vehicle is greater than or equal to 81g/km, or

(ii) where—

(I) the level of CO2 emissions cannot be confirmed by reference to the relevant EC type-approval certificate, EC certificate of conformity or vehicle registration certificate issued in another Member State, and

(II) the Commissioners are not satisfied of the level of CO2 emissions by reference to any other document produced in support of the declaration for registration.”,

(b) in subsection (2) —

(i) in paragraph (a) —

(I) by substituting “Subject to paragraph (aa), where a person” for “Where a person”,

(II) by substituting “31 December 2020” for “31 December 2019”, and

(III) in subparagraph (i), by substituting “paragraph (a) ” for “paragraph (aa) ”,

and

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

“(aa) Paragraph (a) shall not apply to a category A vehicle or a category B vehicle—

(i) where the level of CO2 emissions of the vehicle is greater than or equal to 66g/km, or

(ii) where—

(I) the level of CO2 emissions cannot be confirmed by reference to the relevant EC type-approval certificate, EC certificate of conformity or vehicle registration certificate issued in another Member State, and

(II) the Commissioners are not satisfied of the level of CO2 emissions by reference to any other document produced in support of the declaration for registration.”,

and

(c) in subsection (3)(b), by substituting “paragraph (a) ” for “paragraph (aa) ”.

(2) Subsection (1) shall come into operation on 1 January 2020.

PART 3 Value-Added Tax

52. Interpretation (Part 3)

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

53. Amendment of Chapter 1 of Part 8 of Principal Act (general provisions)

53. The Principal Act is amended—

(a) in section 59—

(i) in subsection (1), by substituting for the definition of “qualifying vehicle” the following:

“ ‘qualifying vehicle’ means a motor vehicle which, for the purposes of vehicle registration tax, is first registered, in accordance with section 131 of the Finance Act 1992—

(a) in the period on or after 1 January 2009 and up to 31 December 2020, and has, for the purposes of that registration, a level of CO2 emissions of less than 156g/km, or

(b) on or after 1 January 2021, and has, for the purposes of that registration, a level of CO2 emissions of less than 140g/km.”,

and

(ii) by deleting subsection (2A),

and

(b) in section 62A(1)(a), by deleting “or (2A)”.

54. Amendment of section 108 of Principal Act (inspection and removal of records)

54. Section 108 of the Principal Act is amended by inserting the following subsections after subsection (6) —

“(7) The cases in which there is exercisable the powers conferred on an authorised officer by this section shall include the case specified in subsection (7) and this section shall be construed and have effect accordingly.

(8) The case referred to in subsection (7) is a case in which an authorised officer is required by Council Regulation 904/2010/EU of 7 October 2010[^13] on administrative cooperation and combating fraud in the field of value added tax to provide to a requesting authority (as defined in Article 2 of that Council Regulation) in another Member State, on request by that authority, any books, records, accounts or other documents, whether—

(a) related to a business being carried on, or

(b) that are connected with that business by means of trading relations, either current or otherwise, that such a business has had with other businesses,

and where such a request is made, the books, records, accounts or other documents that may be the subject of the exercise of the powers referred to in subsection (7) shall extend to such books, records, accounts or other documents as are deemed to be relevant by the authorised officer.”.

55. Amendment of Part 2 of Schedule 3 to Principal Act (goods and services chargeable at the reduced rate)

55. Part 2 of Schedule 3 to the Principal Act is amended with effect from 1 January 2020 by inserting the following paragraph after paragraph 3:

“Food supplements

3A. The supply of food supplements of a kind used for human oral consumption.”.

PART 4 Stamp Duties

56. Interpretation (Part 4)

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

57. Amendment of stamp duty rate on non-residential property

57. (1) The Principal Act is amended—

(a) in section 83D—

(i) in subsections (2)(a) and (6)(a), by substituting “7.5 per cent” for “6 per cent”, and

(ii) in subsection (6)(a), by substituting “11/15” for “2/3”,

and

(b) in Schedule 1—

(i) 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”, in paragraph (4), by substituting “7.5 per cent” for “6 per cent”, and

(ii) in the Heading “LEASE”, in paragraph (3)(b), by substituting “7.5 per cent” for “6 per cent”.

(2) Subsection (1)(a) shall not have effect as respects instruments executed on or after 9 October 2019 where paragraph (b) of subsection (3) applies to the instrument referred to in paragraph (a) of subsection 83D(2) of the Principal Act.

(3) Subsection (1)(b)—

(a) shall have effect as respects instruments executed on or after 9 October 2019, and

(b) shall not have effect as respects any instrument executed before 1 January 2020, where—

(i) the effect of the application of subsection (1)(b) 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 9 October 2019.

(4) The furnishing of an incorrect certificate for the purposes of subsection (3) shall be deemed to constitute the delivery of an incorrect statement for the purposes of section 1078 of the Taxes Consolidation Act 1997.

58. Amendment of section 124B of Principal Act (certain premiums of life assurance)

58. (1) Section 124B(1) (as amended by section 64 of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2019) of the Principal Act is amended in the definition of “insurer”—

(a) in paragraph (c), by substituting “State,” for “State, or”,

(b) in paragraph (d), by substituting “supervising such persons, or” for “supervising such persons;”, and

(c) by inserting the following paragraph after paragraph (d):

“(e) a person who is the holder of an authorisation to undertake insurance granted by the authority in Gibraltar charged by law with the duty of supervising such persons;”.

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

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

59. (1) Section 125(1) (as amended by section 65 of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2019) of the Principal Act is amended, in the definition of “insurer”, by inserting the following after “such persons”:

“, or who is the holder of an authorisation to carry on the business of insurance granted by the authority in Gibraltar charged by law with the duty of supervising such persons”.

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

60. Amendment of section 126AA of Principal Act (further levy on certain financial institutions)

60. (1) Section 126AA(6) of the Principal Act is amended by substituting “170 per cent” for “59 per cent”.

(2) Subsection (1) shall apply in relation to a statement to be delivered in accordance with section 126AA(2) of the Principal Act for the year 2019 and each subsequent year.

61. Cancellation schemes of arrangement

61. The Principal Act is amended by the insertion of the following section after section 31C:

“Cancellation schemes of arrangement

31D. ((1) In this section—

‘Act of 2014’ means the Companies Act 2014;

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

‘company’ means a company formed and registered under the Act of 2014 or an existing company within the meaning of that Act;

‘registrar’ has the same meaning as it has in the Act of 2014;

‘scheme order’ has the same meaning as it has in Chapter 1 of Part 9 of the Act of 2014.

(2) Where—

(a) there is an agreement to effect the acquisition of a company (in this section referred to as the ‘target company’),

(b) the target company enters into an arrangement—

(i) that has become binding in accordance with section 453 of the Act of 2014, and

(ii) in accordance with which there is a cancellation of shares in the target company pursuant to Chapter 4 of Part 3 of that Act,

and

(c) the shareholders of the target company receive consideration for the cancellation of those shares held by them,

the agreement referred to in paragraph (a) shall be—

(I) chargeable with the same stamp duty as if it were a conveyance or transfer on sale of those shares, and

(II) deemed to be executed on the date on which a copy of the scheme order relating to the arrangement is delivered to the registrar in accordance with section 454 of the Act of 2014.

(3) Where subsection (2) applies, the consideration for the purpose of charging stamp duty shall be the consideration received by the shareholders of the target company for the cancellation of shares held by them.

(4) For the purposes of this Act, the accountable person shall be the person paying the consideration for the cancellation of the shares by the shareholders of the target company.

(5) This section shall have effect in relation to a scheme order made on or after 9 October 2019.”.

PART 5 Capital Acquisitions Tax

62. Interpretation (Part 5)

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

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

63. (1) The Principal Act is amended—

(a) in section 48, by deleting subsections (1), (2) and (4) to (9), and

(b) by inserting the following section after section 48:

‘Information about a deceased person’s property

48A. ((1) In this section—

‘electronic means’ has the meaning given to it by section 917EA of the Taxes Consolidation Act 1997;

‘PPS number’, in relation to an individual, means the individual’s personal public service number within the meaning of section 262 of the Social Welfare Consolidation Act 2005;

‘probate’ includes letters of administration.

(2) A person who intends to apply for probate in relation to the estate of a deceased person, where the deceased person was on the date of his or her death—

(a) resident and domiciled, or ordinarily resident and domiciled, in the State,

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

(c) where neither paragraph (a) nor (b) applied, an individual who had an interest in property situate in the State,

shall submit information to the Commissioners which information shall be specified in regulations made by the Commissioners under subsection (3).

(3) The Commissioners shall make regulations to give effect to subsection (2), and those regulations may, in particular and without prejudice to the generality of that subsection, include provision for the information to be specified by the Commissioners which information may include—

(a) details of all property in respect of which probate is being sought and in respect of which the beneficial ownership is affected on the death of the deceased person by—

(i) that person’s will,

(ii) the rules for distribution on intestacy, or

(iii) Part IX, or section 56, of the Succession Act 1965 or under the analogous law of another territory,

and such details may include—

(I) the nature of the property,

(II) the nature of the deceased person’s interest in the property,

(III) the situation of the property,

(IV) the valuation of the property, and

(V) any debts or charges attaching to the property,

(b) in relation to the deceased person, his or her—

(i) name and address,

(ii) PPS number,

(iii) territory of residence, ordinary residence and domicile at the date of death,

(iv) debtors and the amount owed to them, and

(v) creditors and the amount owned by them,

(c) details of any property that was the subject matter of—

(i) a gift made by the deceased person where the date of the gift was within 2 years of that person’s death, or

(ii) a donatio mortis causa by the deceased person,

(d) details of any discretionary trust created by the deceased person whether created before his or her death or under his or her will,

(e) details of the inheritances arising under—

(i) the deceased person’s will,

(ii) the rules for distribution on intestacy, or

(iii) Part IX, or section 56, of the Succession Act 1965 or under the analogous law of another territory,

(f) in relation to each person who takes an inheritance on the death of the deceased person, the person’s—

(i) name and address,

(ii) PPS number,

(iii) territory of residence, ordinary residence and domicile at the date of the death, and

(iv) relationship to the deceased person,

and

(g) in relation to the person who intends to apply for probate—

(i) that person’s name and address,

(ii) that person’s relationship to the deceased person,

(iii) the capacity in which the person intends to apply for probate, and

(iv) the form of the declaration to be made by that person in respect of the information submitted to the Commissioners under the regulations.

(4) Regulations made under subsection (3) may also provide for—

(a) the supporting documentation to be provided including a copy of the will, and codicil, if any,

(b) the submission of information by electronic means,

(c) the information to be exchanged between the Commissioners and the Probate Office, and

(d) such incidental, supplemental or consequential provisions as appear to the Commissioners to be necessary or expedient to give effect to subsection (2).

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

(2) (a) Subsection (1)(a) shall have effect from the date on which the regulations referred to in subsection (3) of section 48A (inserted by subsection (1)(b)) come into operation.

(b) Subsection (1)(b) shall come into operation on such day as the Minister for Finance may appoint by order.

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

64. Section 86 of the Principal Act is amended—

(a) in subsection (2) —

(i) in paragraph (a), by substituting “his or her death, and” for “his or her death,”,

(ii) in paragraph (b), by substituting “the date of the inheritance.” for “the date of the inheritance, and”, and

(iii) by deleting paragraph (c),

(b) in subsection (4), by substituting “subsections (4A), (4B), (5) and (6) ” for “subsections (5) and (6) ”, and

(c) by inserting after subsection (4) the following:

“(4A) For the purposes of subsection (4), and in relation to a disponer and a successor—

(a) a dwelling house shall not be regarded as a relevant dwelling house where the successor is beneficially entitled to, or has a beneficial interest in, any other dwelling house—

(i) at the date of the inheritance of the first-mentioned dwelling house in this paragraph (a), or

(ii) at the valuation date of the first-mentioned dwelling house in this paragraph (a), if this date is later than that date of inheritance and such entitlement to, or interest in, that dwelling house is taken from the disponer,

and

(b) where—

(i) a dwelling house to which the successor is beneficially entitled, or in which the successor has a beneficial interest, is regarded as a relevant dwelling house, and

(ii) that successor acquires a subsequent beneficial entitlement to or a beneficial interest in any other dwelling house by way of an inheritance taken from the disponer,

the first-mentioned dwelling house in this paragraph (b) shall cease to be regarded as a relevant dwelling house on the date on which that subsequent entitlement or interest is acquired.

(4B) Where paragraph (b) of subsection (4A) applies—

(a) subparagraphs (i) and (ii) of subsection (6) shall apply as if the dwelling house had not been a relevant dwelling house at the date of the inheritance, and

(b) the relevant date (within the meaning of section 46(5)) from which interest is to be charged in accordance with section 51(2) shall be the earliest valuation date for any other dwelling house to which the successor takes a beneficial entitlement or in which the successor takes a beneficial interest from the disponer if that date is later than the date which, apart from this subsection, would be the relevant date.”.

65. Amendment of Schedule 2 to Principal Act (computation of tax)

65. (1) Paragraph 1 of Part 1 of Schedule 2 to the Principal Act is amended, in paragraph (a) of the definition of “group threshold”, by substituting “€335,000” for “€320,000”.

(2) This section shall apply to gifts and inheritances taken on or after 9 October 2019.

PART 6 Miscellaneous

66. Interpretation (Part 6)

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

67. Mandatory automatic exchange of information in relation to reportable cross-border arrangements

67. (1) Part 33 of the Principal Act is amended by inserting the following Chapter after Chapter 3:

“Chapter 3A

Implementation of Council Directive (EU) 2018/822 of 25 May 2018[^14]amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements

Interpretation (Chapter 3A)

817RA. (1) In this Chapter—

‘arrangement’ means—

(a) any transaction, action, course of action, course of conduct, scheme, plan or proposal,

(b) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable or intended to be enforceable by legal proceedings, and

(c) any series of or combination of the circumstances referred to in paragraphs (a) and (b),

whether entered into or arranged by one or two or more persons—

(i) whether acting in concert or not,

(ii) whether or not entered into or arranged wholly or partly outside the State, or

(iii) whether or not entered into or arranged as part of a larger arrangement or in conjunction with any other arrangement or arrangements,

but does not include an arrangement referred to in section 826;

‘associated enterprise’ has the same meaning as it has in Article 3(23) of the Directive;

‘competent authority’ means the authority designated as such by a Member State for the purposes of the Directive and, in relation to the State, means the Revenue Commissioners;

‘cross-border arrangement’ means an arrangement concerning either more than one Member State or a Member State and a third country where at least one of the following conditions is met:

(a) not all of the participants in the arrangement are resident for tax purposes in the same jurisdiction;

(b) one or more of the participants in the arrangement is simultaneously resident for tax purposes in more than one jurisdiction;

(c) one or more of the participants in the arrangement carries on a business in another jurisdiction through a permanent establishment situated in that jurisdiction and the arrangement forms part or the whole of the business of that permanent establishment;

(d) one or more of the participants in the arrangement carries on an activity in another jurisdiction without being resident for tax purposes or creating a permanent establishment situated in that jurisdiction;

(e) such arrangement has a possible impact on the automatic exchange of information or the identification of beneficial ownership;

‘Directive’ means Council Directive 2011/16/EU of 15 February 2011[^15] 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[^16], Council Directive (EU) 2015/2376 of 8 December 2015[^17], Council Directive (EU) 2016/881 of 25 May 2016[^18], Council Directive (EU) 2016/2258 of 6 December 2016[^19] and Council Directive (EU) 2018/822 of 25 May 2018[^20];

‘electronic means’ has the same meaning as it has in section 917EA(1);

‘hallmark’, ‘marketable arrangement’ and ‘person’ have the same meanings respectively as they have in Article 3 of the Directive;

‘intermediary’ means any person—

(a) that—

(i) designs, markets, organises or makes available for implementation or manages the implementation of a reportable cross-border arrangement, or

(ii) having regard to the relevant facts and circumstances and based on available information and the relevant expertise and understanding required to provide such services, knows or could be reasonably expected to know that such person has undertaken to provide, directly or by means of other persons, aid, assistance or advice with respect to designing, marketing, organising, making available for implementation or managing the implementation of a reportable cross-border arrangement,

and

(b) that meets at least one of the following conditions:

(i) the person is resident for tax purposes in a Member State;

(ii) the person has a permanent establishment in a Member State through which the services with respect to the arrangement are provided;

(iii) the person is incorporated in, or governed by the laws of, a Member State;

(iv) the person is registered with a professional association related to legal, taxation or consultancy services in a Member State;

‘reference number’ means the number assigned to a reportable cross-border arrangement by the Revenue Commissioners or by the competent authority of another Member State;

‘Regulations of 2012’ means the European Union (Administrative Cooperation in the Field of Taxation) Regulations 2012 (S.I. No. 549 of 2012);

‘relevant taxpayer’ means any person to whom a reportable cross-border arrangement is made available for implementation, or who is ready to implement a reportable cross-border arrangement or has implemented the first step of such an arrangement;

‘reportable cross-border arrangement’ means any cross-border arrangement that contains at least one of the hallmarks set out in Annex IV of the Directive;

‘return’ has the same meaning as it has in section 917D(1);

‘specified information’ means, in respect of a reportable cross-border arrangement, the information set out in subsection (3);

‘tax advantage’ means—

(a) relief or increased relief from, or a reduction, avoidance or deferral of, any assessment, charge or liability to tax, including any potential or prospective assessment, charge or liability,

(b) a refund or repayment of, or a payment of, an amount of tax, or an increase in an amount of tax refundable, repayable or otherwise payable to a person, including any potential or prospective amount so refundable, repayable or payable, or an advancement of any refund or repayment of, or payment of, an amount of tax to a person, or

(c) the avoidance of any obligation to deduct or account for tax,

arising out of or by reason of an arrangement, including an arrangement where another arrangement would not have been undertaken or arranged to achieve the results, or any part of the results, achieved or intended to be achieved by the arrangement;

‘taxpayer identification number’ means the tax identification number (TIN) allocated to a person by the tax administration of the jurisdiction of residence of the person and, in relation to the State, means a tax reference number within the meaning of section 885.

(2) For the purposes of this Chapter, a person referred to in paragraph (a)(ii) of the definition of ‘intermediary’ in subsection (1) shall have the right to provide evidence that such person did not know and could not reasonably be expected to know that that person was involved in a reportable cross-border arrangement and, for this purpose, that person may refer to all relevant facts and circumstances as well as available information and that person’s relevant expertise and understanding.

(3) The following is the information referred to in the definition of ‘specified information’ in subsection (1):

(a) information in relation to the identity of each intermediary and relevant taxpayer, including—

(i) the name of each such intermediary and relevant taxpayer,

(ii) whether each such intermediary and relevant taxpayer is an individual or entity,

(iii) the date and place of birth (in the case of an individual) of each such intermediary and relevant taxpayer,

(iv) the residence for tax purposes of each such intermediary and relevant taxpayer,

(v) the taxpayer identification number of each such intermediary and relevant taxpayer,

(vi) the country of issuance of the taxpayer identification number of each such intermediary and relevant taxpayer,

(vii) if the information referred to in either or both subparagraph (v) or (vi) is not known to the person who is required to make a return under this Chapter of the specified information, the address of each such intermediary and relevant taxpayer, and

(viii) where appropriate, the persons that are associated enterprises to each such relevant taxpayer;

(b) details of each hallmark that makes the cross-border arrangement reportable;

(c) a summary of the content of the reportable cross-border arrangement, including the name by which it is commonly known, if any, and a description in abstract terms of the relevant business activities or arrangements, without leading to the disclosure of a commercial, industrial or professional secret or of a commercial process, or of information the disclosure of which would be contrary to public policy;

(d) the reference number assigned to the reportable cross-border arrangement, if any;

(e) details of the national provisions that form the basis of the reportable cross-border arrangement;

(f) the value of the reportable cross-border arrangement;

(g) the date on which the first step was taken or will be taken in implementing the reportable cross-border arrangement;

(h) the identification of the Member State of each such relevant taxpayer and any other Member States which are likely to be concerned by the reportable cross-border arrangement; and

(i) the identification of any other person in a Member State likely to be affected by the reportable cross-border arrangement, indicating to which Member States such person is linked.

(4) A word or expression which is used in this Chapter and which is also used in the Directive has, unless the context otherwise requires, the same meaning in this Chapter as it has in the Directive.

Application of Chapter 3A

817RB.(1) Subject to subsection (2), this Chapter applies to all taxes of any kind levied by, or on behalf of, a Member State or its territorial or administrative subdivisions, including local authorities.

(2) This Chapter shall not apply to—

(a) (i) value-added tax, customs duties, or excise duties covered by other legislation of the European Union on administrative cooperation between Member States, or

(ii) compulsory social security contributions payable to a Member State or a subdivision of a Member State or to social security institutions established under public law,

(b) fees for documents issued by public authorities, and

(c) consideration due under a contract.

Duties of intermediary

817RC. (1) An intermediary within the meaning of paragraph (a)(i) of the definition of ‘intermediary’ in section 817RA(1) shall make a return to the Revenue Commissioners of the specified information within 30 days beginning—

(a) on the day after the reportable cross-border arrangement is made available for implementation,

(b) on the day after the reportable cross-border arrangement is ready for implementation, or

(c) when the first step in the implementation of the reportable cross-border arrangement was taken,

whichever occurs first.

(2) An intermediary within the meaning of paragraph (a)(ii) of the definition of ‘intermediary’ in section 817RA(1) shall make a return to the Revenue Commissioners of the specified information within 30 days beginning on the day after such intermediary provided, directly or by means of other persons, aid, assistance or advice referred to in the said paragraph (a)(ii).

(3) In the case of a marketable arrangement, an intermediary shall—

(a) when making a return under subsection (1) or (2), as the case may be (in this subsection referred to as ‘the return’), state in the return that it is a marketable arrangement, and

(b) not later than 3 months after the date of the return and every 3 months thereafter, notify the Revenue Commissioners, by amending the return, of any new information that has become available in respect of the specified information referred to in paragraphs (a), (g), (h) and (i) of section 817RA(3).

(4) A return (including an amended return under subsection (3)) required under this section shall be made by electronic means and the relevant provisions of Chapter 6 of Part 38 shall apply.

(5) An intermediary shall provide, in writing, to any other intermediary and each relevant taxpayer involved in the arrangement, the reference number assigned to the arrangement by the Revenue Commissioners within 5 working days of the later of—

(a) the date on which the intermediary is notified by the Revenue Commissioners of the reference number, or

(b) the date on which such other intermediary or a relevant taxpayer becomes involved in the arrangement.

(6) An intermediary shall be exempt from making a return to the Revenue Commissioners under this section if the intermediary has received, in writing, from any other intermediary involved in the same reportable cross-border arrangement—

(a) confirmation that such other intermediary has provided the specified information to the Revenue Commissioners in a return made under this section, and

(b) the reference number assigned to the arrangement by the Revenue Commissioners.

(7) Subject to subsection (8), where an intermediary is required to provide the specified information on a reportable cross-border arrangement to the competent authority of more than one Member State, such information shall be provided only to the competent authority of the Member State referred to in whichever of the following paragraphs first applies:

(a) the competent authority of the Member State where the intermediary is resident for tax purposes;

(b) the competent authority of the Member State where the intermediary has a permanent establishment through which the services with respect to the arrangement are provided;

(c) the competent authority of the Member State which the intermediary is incorporated in or governed by the laws of;

(d) the competent authority of the Member State where the intermediary is registered with a professional association related to legal, taxation or consultancy services.

(8) Where subsection (7) applies, an intermediary shall be exempt from making a return under this section if the intermediary has—

(a) a copy of the specified information provided to the competent authority of another Member State, and

(b) confirmation, in writing, provided to the intermediary by the competent authority of another Member State that a reference number has been assigned to the arrangement by that competent authority.

(9) Nothing in this section shall be construed as requiring an intermediary to disclose to the Revenue Commissioners—

(a) information that is not within the knowledge, possession or control of the intermediary, or

(b) information with respect to which a claim to legal professional privilege could be maintained by the intermediary in legal proceedings.

(10) Where subsection (9)(b) applies, the intermediary concerned shall, without delay, notify any other intermediary or, if there is no other intermediary, the relevant taxpayer, of the obligations imposed on such other intermediary or that relevant taxpayer, as the case may be, under this Chapter.

Duties of relevant taxpayer

817RD.(1) Where there is no intermediary, or the relevant taxpayer has been notified by an intermediary under section 817RC(10), the relevant taxpayer shall make a return to the Revenue Commissioners of the specified information within 30 days beginning—

(a) on the day after the reportable cross-border arrangement is made available for implementation to the relevant taxpayer,

(b) on the day after the reportable cross-border arrangement is ready for implementation by the relevant taxpayer, or

(c) when the first step in the implementation of a reportable cross-border arrangement was taken in relation to the relevant taxpayer,

whichever occurs first.

(2) A return required under this section shall be made by electronic means and the relevant provisions of Chapter 6 of Part 38 shall apply.

(3) Where a relevant taxpayer is required to make a return under this section and there is more than one relevant taxpayer involved in the same reportable cross-border arrangement, the return shall be made by the relevant taxpayer referred to in whichever of the following paragraphs first applies:

(a) the relevant taxpayer that agreed the reportable cross-border arrangement with the intermediary;

(b) the relevant taxpayer that manages the implementation of the arrangement.

(4) Where a relevant taxpayer is required to make a return under this section (‘the first relevant taxpayer’) and there is more than one relevant taxpayer involved in the same reportable cross-border arrangement, the first relevant taxpayer shall provide, in writing, to each such other relevant taxpayer, the reference number assigned to the arrangement by the Revenue Commissioners within 5 working days of the later of—

(a) the date on which the first relevant taxpayer is notified by the Revenue Commissioners of the reference number, or

(b) the date on which such other relevant taxpayer becomes involved in the arrangement.

(5) A relevant taxpayer shall be exempt from making a return to the Revenue Commissioners under this section if the relevant taxpayer has received, in writing, from any other relevant taxpayer involved in the same reportable cross-border arrangement—

(a) confirmation that such other relevant taxpayer has provided the specified information to the Revenue Commissioners in a return made under this section, and

(b) the reference number assigned to the arrangement by the Revenue Commissioners.

(6) Subject to subsection (7), where a relevant taxpayer is required to provide the specified information on a reportable cross-border arrangement to the competent authority of more than one Member State, such information shall be provided only to the competent authority of the Member State referred to in whichever of the following paragraphs first applies:

(a) the competent authority of the Member State where the relevant taxpayer is resident for tax purposes;

(b) the competent authority of the Member State where the relevant taxpayer has a permanent establishment benefitting from the arrangement;

(c) the competent authority of the Member State where the relevant taxpayer receives income or generates profits, although the relevant taxpayer is not resident for tax purposes and has no permanent establishment in any Member State;

(d) the competent authority of the Member State where the relevant taxpayer carries on an activity, although the relevant taxpayer is not resident for tax purposes and has no permanent establishment in any Member State.

(7) Where subsection (6) applies, a relevant taxpayer shall be exempt from making a return under this section if the relevant taxpayer has—

(a) a copy of the specified information provided to the competent authority of another Member State, and

(b) confirmation, in writing, provided to the relevant taxpayer by the competent authority of another Member State that a reference number has been assigned to the arrangement by that competent authority.

(8) Any person who obtains or seeks to obtain a tax advantage from a reportable cross-border arrangement shall be a chargeable person for the purposes of Part 41A.

(9) A relevant taxpayer shall include the reference number assigned to a reportable cross-border arrangement in the return, within the meaning of Part 41A, for any chargeable period, within the meaning of Part 41A, in which the relevant taxpayer—

(a) entered into any transaction which is or forms part of a reportable cross-border arrangement, or

(b) obtains, or seeks to obtain, a tax advantage from a reportable cross-border arrangement.

(10) Nothing in this section shall be construed as requiring a relevant taxpayer to disclose to the Revenue Commissioners information that is not within the knowledge, possession or control of the relevant taxpayer.

Duties of Revenue Commissioners

817RE. (1) Where a return is made to the Revenue Commissioners under this Chapter, the Revenue Commissioners shall assign a reference number to the reportable cross-border arrangement if no such number has already been assigned to it by the Revenue Commissioners or by the competent authority of another Member State.

(2) The fact that the Revenue Commissioners do not react to a reportable cross-border arrangement shall not imply any acceptance of the validity or tax treatment of the arrangement.

(3) The Revenue Commissioners may authorise any of their officers to perform any acts and discharge any functions authorised by this Chapter.

Arrangements implemented before 1 July 2020

817RF.(1) (a) Subject to paragraph (b), section 817RC shall apply to reportable cross-border arrangements the first step of which was implemented during the period beginning on 25 June 2018 and ending on 30 June 2020.

(b) Where paragraph (a) applies, a return of the specified information shall be made to the Revenue Commissioners under section 817RC not later than 31 August 2020 and the time limit specified in section 817RC(1) or (2), as the case may be, shall not apply.

(2) (a) Subject to paragraph (b), section 817RD shall apply to reportable cross-border arrangements the first step of which was implemented during the period beginning on 25 June 2018 and ending on 30 June 2020.

(b) Where paragraph (a) applies, a return to the Revenue Commissioners of the specified information shall be made under section 817RD not later than 31 August 2020 and the time limit specified in section 817RD(1) shall not apply.

Exchange of information

817RG.The Revenue Commissioners, when communicating the information specified in Article 8ab(14) of the Directive to the competent authorities of all other Member States in accordance with the Regulations of 2012, may disclose the following information connected with or supplementary to the information so specified:

(a) the reference number assigned to the reportable cross-border arrangement concerned;

(b) in relation to each intermediary and relevant taxpayer concerned—

(i) the country of issuance of the taxpayer identification number of each such intermediary and relevant taxpayer,

(ii) whether each such intermediary or relevant taxpayer is an individual or entity, and

(iii) the address of each such intermediary or relevant taxpayer.

Penalties

817RH.(1) A person who fails to comply with any of the obligations imposed on such person by this Chapter shall—

(a) where the failure relates to the obligation imposed on a person under subsection (3) or (10) of section 817RC, or section 817RD(4) or 817RF, be liable to—

(i) a penalty not exceeding €4,000, and

(ii) if the failure continues after a penalty is imposed under subparagraph (i), to a further penalty of €100 per day for each day on which the failure continues after the day on which the penalty is imposed under that subparagraph,

(b) where the failure relates to the obligation imposed on a person under subsection (1), (2) or (5) of section 817RC or section 817RD(1), be liable to—

(i) a penalty not exceeding €500 for each day during the initial period, and

(ii) if the failure continues after a penalty is imposed under subparagraph (i), to a further penalty of €500 per day for each day on which the failure continues after the day on which the penalty is imposed under that subparagraph,

(c) where the failure relates to the obligation imposed on a person by section 817RD(9), be liable to a penalty not exceeding €5,000.

(2) For the purposes of subsection (1)(b) —

‘the initial period’ means the period—

(a) beginning on the relevant day, and

(b) ending on the day on which an application referred to in subsection (3) is made;

‘relevant day’ means the first day after the end of the period specified in subsection (1), (2) or (5) of section 817RC or section 817RD(1), as the case may be, during which the obligation imposed on a person by the said subsection (1), (2) or (5) of section 817RC or section 817RD(1), as the case may be, shall be discharged.

(3) (a) Notwithstanding section 1077B, the Revenue Commissioners shall, in relation to a failure referred to in subsection (1), make an application to the relevant court for that court to determine whether the person named in the application has failed to comply with the obligation imposed on that person by a provision referred to in subsection (1)(a), (b) or (c), as the case may be.

(b) In paragraph (a) ‘relevant court’ means the District Court, the Circuit Court or the High Court, as appropriate, by reference to the jurisdictional limits for civil matters laid down in Courts of Justice Act 1924 and the Courts (Supplemental Provisions) Act 1961.

(4) A copy of an application under subsection (3) shall be given to the person to whom the application relates.

(5) The relevant court shall determine whether the person named in the application made under subsection (3) is liable to the penalty provided for in paragraph (a), (b) or (c), as the case may be, of subsection (1) and the amount of that penalty, and in determining the amount of the penalty the court shall have regard to paragraph (a) or (b), as the case may be, of subsection (6).

(6) In determining the amount of a penalty under subsection (5) the court shall have regard—

(a) in the case of a person who is an intermediary, to the amount of any fees received, or likely to have been received, by the person in connection with the reportable cross-border arrangement, and

(b) in any other case, to the amount of any tax advantage gained, or sought to be gained, by the person from the reportable cross-border arrangement.

(7) Section 1077C shall apply for the purposes of a penalty under subsection (1).”.

(2) Subsection (1) shall come into operation on 1 July 2020.

68. Amendment of Part 40A of Principal Act (appeals to Appeals Commissioners)

68. Part 40A of the Principal Act is amended—

(a) in section 949T, by inserting the following subsection after subsection (1):

“(1A) A direction given under subsection (1) shall specify—

(a) the date on which and time at which the case management conference shall commence, and

(b) the location at which the case management conference shall be held.”,

(b) in section 949W, by inserting the following subsections after subsection (2):

“(3) The Appeal Commissioners shall, at any stage, stay proceedings in an appeal for the purpose of allowing a Mutual Agreement Procedure, relating to the matters to which the appeal relates, to proceed and conclude, where both parties have applied for a direction to that effect under section 949E.

(4) Notwithstanding subsection (2) and subject to subsection (5), the Appeal Commissioners, in giving a direction to stay proceedings following an application in that behalf under subsection (3), shall not be required to specify a date by which the proceedings are to be resumed, but shall stay proceedings in the appeal concerned until the Mutual Agreement Procedure concerned has concluded.

(5) Where a party applies under section 949E for a direction that proceedings stayed under subsection (3) be resumed before the Mutual Agreement Procedure concerned has concluded, the Appeal Commissioners shall give a direction that the stayed proceedings be resumed.

(6) The Appeal Commissioners may from time to time give a direction to the parties that one or both of them notify the Appeal Commissioners in relation to the progress of the Mutual Agreement Procedure.

(7) In this section ‘Mutual Agreement Procedure’ means a procedure in accordance with which a mutual agreement may be reached, for the resolution of a dispute, between the competent authority of the State and a competent authority of another jurisdiction under—

(a) an arrangement having the force of law by virtue of section 826(1), or

(b) the European Union (Tax Dispute Resolution Mechanisms) Regulations 2019 (S.I. No. 306 of 2019).”,

and

(c) in section 949AV—

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

“(1) Subject to subsections (4) and (5), the Appeal Commissioners may dismiss an appeal where a party has failed to comply, to the Appeal Commissioners’ satisfaction, with a direction given by them under—

(a) subsection (1) of section 949E, in relation to the matter referred to in paragraph (2)(a) of that section, or

(b) section 949T(1).”,

(ii) in subsection (2), by substituting “Subject to subsections (3), (4) and (5) ” for “Subject to subsection (3) ”,

(iii) in subsection (3), by substituting “Subject to subsections (4) and (5), the Appeal Commissioners shall” for “The Appeal Commissioners shall”, and

(iv) by inserting the following subsections after subsection (3):

“(4) Where a party has failed to comply with a direction under section 949T, the Appeal Commissioners shall not dismiss an appeal under subsection (1) in a case in which an application has been made to the Appeal Commissioners by the party after the time appointed for the case management conference concerned and the Appeal Commissioners are satisfied that—

(a) owing to absence, illness or other reasonable cause, the party was prevented from attending the case management conference, and

(b) the application was made without unreasonable delay after the date specified in the direction.

(5) Where, following an application in that behalf under subsection (4), the Appeal Commissioners are not satisfied as to the matters specified in paragraphs (a) and (b) of that subsection, they shall dismiss the appeal and their decision shall be final and conclusive.”.

69. Mutual agreement procedures

69. Part 41A of the Principal Act is amended—

(a) in section 959AF(3), by substituting “Subject to section 959AW, in default of an appeal” for “In default of an appeal”, and

(b) by inserting the following Chapter after Chapter 7:

“Chapter 8

Miscellaneous provisions

Mutual agreement procedures

959AW.Notwithstanding section 959AF(3), an assessment or amended assessment, as the case may be, made on a person shall not be final and conclusive where, within 30 days after the date of the notice of assessment, the person—

(a) requests a mutual agreement under an arrangement having the force of law by virtue of section 826(1) between the competent authority of the State and a competent authority of another jurisdiction, or

(b) submits a complaint on a question in dispute to the Revenue Commissioners under the European Union (Tax Dispute Resolution Mechanisms) Regulations 2019 (S.I. No. 306 of 2019).”.

70. Amendment of section 917K of Principal Act (hard copies)

70. Section 917K of the Principal Act is amended by substituting the following subsection for subsection (1):

“(1) A hard copy shall be made in accordance with this subsection only if—

(a) the hard copy is made under processes and procedures which are designed to ensure that the information contained in the hard copy shall only be the information transmitted or to be transmitted in accordance with section 917F(1), and

(b) the hard copy is authenticated in accordance with subsection (2).”.

71. Amendment of section 990 of Principal Act (assessment of tax due)

71. Section 990(2) of the Principal Act is amended—

(a) by substituting “is less than or greater than” for “is less than”, and

(b) by substituting “by increasing or reducing it, as appropriate,” for “by increasing it”.

72. Amendment of section 1001 of Principal Act (liability to tax, etc. of holder of fixed charge on book debts of company)

72. Section 1001 of the Principal Act is amended in subsection (3)(c) —

(a) by inserting “or, where the fixed charge has been transferred (whether before or after the coming into operation of section 72 of the Finance Act 2019), on or before 31 January 2020 or within 21 days of the date of transfer of the fixed charge (whichever is the later),” after “the creation of the fixed charge”, and

(b) in subparagraph (iv), by inserting “or transferred, as the case may be” after “created”.

73. 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)

73. Schedule 24A to the Principal Act is amended in Part 1—

(a) by substituting the following for paragraph 28:

“28. The Double Taxation Relief (Taxes on Income and Capital) (Kingdom of the Netherlands) Order 1970 (S.I. No. 22 of 1970) and the Double Taxation Relief (Taxes on Income and Capital Gains) (Kingdom of the Netherlands) Order 2019 (S.I. No. 459 of 2019).”,

and

(b) by substituting the following for paragraph 41:

“41. The Double Taxation Relief (Taxes on Income and Capital) (Swiss Confederation) Order 1967 (S.I. No. 240 of 1967), the Double Taxation Relief (Taxes on Income and Capital) (Swiss Confederation) Order 1984 (S.I. No. 76 of 1984), the Double Taxation Relief (Taxes on Income and on Capital) (Swiss Confederation) Order 2013 (S.I. No. 30 of 2013) and the Double Taxation Relief (Taxes on Income and on Capital) (Swiss Confederation) Order 2019 (S.I. No. 460 of 2019).”.

74. Miscellaneous technical amendments in relation to tax

74. The enactments specified in the Schedule—

(a) are amended to the extent and in the manner specified in paragraphs 1 to 5 of that Schedule, and

(b) apply and come into operation in accordance with paragraph 6 of that Schedule.

75. Care and management of taxes and duties

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

76. Short title, construction and commencement

76. (1) This Act may be cited as the Finance Act 2019.

(2) Part 1 shall be construed together with—

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

(b) in so far as it relates to universal social charge, Part 18D of the Principal Act,

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

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

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

(4) Part 3 shall be construed together with the Value-Added Tax Acts.

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

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

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

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

(b) universal social charge, shall be construed together with Part 18D of the Principal Act,

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

(d) capital gains tax, shall be construed together with the Capital Gains Tax Acts,

(e) customs, shall be construed together with the Customs Acts,

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

(g) value-added tax, shall be construed together with the Value-Added Tax Acts,

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

(i) domicile levy, shall be construed together with Part 18C of the Principal Act, and

(j) gift tax or inheritance tax, shall be construed together with the Capital Acquisitions Tax Consolidation Act 2003 and the enactments amending or extending that Act.

(8) Except where otherwise expressly provided for in Part 1, that Part shall come into operation on 1 January 2020.

(9) Except where otherwise expressly provided for, where a provision of this Act is to come into operation on the making of an order by the Minister for Finance, that provision shall come into operation on such day or days as the Minister for Finance shall appoint either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

SCHEDULE Miscellaneous Technical Amendments in Relation to Tax

Section 74

(a) in section 2(1), in paragraph (c) of the definition of “appropriate inspector”, by inserting “or branch” after “Revenue district”,

(b) in section 56(3)(c), by inserting “or branch” after “assessment district”,

(c) in section 267H(2)(c), by substituting “arm’s” for “arms’ ”,

(d) in section 481—

(i) in subsection (1) —

(I) in the definition of “specified relevant person”, by substituting “subsection (2C)(d);” for “subsection (2C)(d).”, and

(II) in the definition of “total cost of production”, by substituting “qualifying film” for “qualifying company”,

(ii) in subsection (2)(b)(IV), by substituting “(2013/C 332/01)[^21] —” for “(2013/C 332/01)^21”,

(iii) in subsection (2C)—

(I) in paragraph (ca), by substituting “paragraph (d)(ii),” for “paragraph (d)(ii).”,

(II) in paragraph (d)(ii), by substituting “regulations,” for “regulations.”,

(III) in paragraph (da) —

(A) by substituting “unless the company makes a claim” for “makes a claim”, and

(B) by substituting “as is specified in the regulations made under subsection (2E)” for “specified in those regulations”,

and

(IV) in paragraph (f), by substituting “paragraph (d), and” for “paragraph (d), and,”,

and

(iv) in subsection (2E)—

(I) in paragraph (h), by substituting “subsection (2C)(da) ” for “subsection (2C)(d)(iii) ”, and

(II) in paragraph (l), by substituting “producer company,” for “producer company.”,

(e) in section 485C(1), in the definition of “ring-fenced income”—

(i) in paragraph (a), by substituting “concerned, and” for “concerned,”,

(ii) in paragraph (b), by substituting “267M;” for “267M,”, and

(iii) by deleting paragraphs (c) and (d),

(f) in section 878—

(i) in subsection (1), by inserting “or branch” after “any district”, and

(ii) in subsection (2), by substituting the following for paragraph (b):

“(b) notice in writing may be given by any such persons to the inspector for each district or branch in which they are called on for a statement stating in which district, districts, branch or branches they are respectively chargeable on their own account, and in which of those districts or branches they desire to be charged on behalf of the person for whom they act, and they shall, if any one such person is liable to be charged on such person’s own account in that district or branch, be charged in that district or branch accordingly by one assessment.”,

(g) in section 959B(1), by substituting “31 December” for “5 April”, and

(h) in Schedule 27, by substituting “within my district or branch” for “within my district”.

(a) in section 2(1), in paragraph (a) of the definition of “exempted activity”, by substituting “sections 93(2)(a)(i), 94(2) and 95(3) and (7)(b) ” for “sections 94(2) and 95(3) and (7)(b) ”, and

(b) in Schedule 1, in paragraph 4(2), by substituting “Part VIIA or VIII of the Child Care Act 1991” for “Part VII or VIII of the Child Care Act 1991”.

(a) by inserting the following definition:

“ ‘Regulation 2018/858’ means Regulation (EU) 2018/858 of the European Parliament and of the Council of 30 May 2018[^22] on the approval and market surveillance of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles, amending Regulations (EC) No 715/2007 and (EC) No 595/2009 and repealing Directive 2007/46/EC;”,

and

(b) in the definition of “type-approval”, by substituting “, Regulation 168/2013 and Regulation 2018/858” for “and Regulation 168/2013”.

(b) Subparagraph (e) of paragraph 1 applies for the year of assessment 2020 and each subsequent year of assessment.