FINANCE ACT 2020

“Modification of basic rules on transfer pricing for arrangements between qualifying relevant persons

835E. (1) For the purposes of this Part, but subject to subsection (2), for a chargeable period, ‘qualifying relevant person’, in relation to an arrangement, means—

• (a) a relevant person—

  • (i) who is chargeable to income tax or corporation tax under Schedule D for the chargeable period in respect of profits or gains or losses, the computation of which takes account of the actual results of the arrangement, and

  • (ii) who, where that person is chargeable to income tax in respect of profits or gains or losses (and, as aforesaid, the computation of which takes account of the actual results of the arrangement), is resident in the State for the purposes of tax for the chargeable period,

  or

• (b) a person who, not being a relevant person to whom paragraph (a) applies, is a supplier or an acquirer who, under paragraph (c)(i) of subsection (5), is regarded as a party to a qualifying loan arrangement.

• (2) A person who is a qualifying company within the meaning of section 110 shall not be regarded, for the purposes of this Part, as a qualifying relevant person.

• (3) For the purposes of this section, but subject to subsection (5)(c)(ii), the computation of profits or gains or losses of a relevant person that are chargeable to income tax or corporation tax under Schedule D for the chargeable period, as the case may be, shall only be regarded as taking account of the actual results of an arrangement where—

  • (a) in the case of an acquirer in relation to an arrangement, the actual consideration payable for an acquisition under the arrangement is directly taken into account in computing the amount of profits or gains or losses of the acquirer that are chargeable to tax under Schedule D,

  • (b) in the case of a supplier in relation to an arrangement, the actual consideration receivable for a supply under the arrangement is directly taken into account in computing the amount of profits or gains or losses of the supplier that are chargeable to tax under Schedule D.

• (4) Subject to subsections (5) and (6), where the actual consideration receivable by the supplier for a supply under an arrangement, or the actual consideration payable by the acquirer for an acquisition under an arrangement, is not greater than a nominal amount, the computation of profits or gains or losses of the supplier or the acquirer, as the case may be, that are chargeable to tax under Schedule D shall, for the purposes of this section, not be regarded as taking account of the actual results of that arrangement.

• (5)

  • (a) In this subsection a ‘qualifying loan arrangement’ for a chargeable period is an arrangement—

    • (i) whereby a loan is made by a supplier to an acquirer, otherwise than in the course of a trade carried on by the supplier, and—

      • (I) where the acquirer is a company referred to in clause (I) or (II) of subparagraph (ii), the acquirer is within the charge to corporation tax and the supplier is—

      • (A) an individual who is resident in the State for the purposes of income tax, or

      • (B) a company within the charge to corporation tax,

      or

      - (II) where the acquirer is a company referred to in clause (III) of subparagraph (ii), both the supplier and the acquirer are companies within the charge to corporation tax,
      

    • (ii) where the company who is the acquirer in relation to the arrangement is—

      • (I) a company which exists wholly or mainly for the purposes of carrying on a trade or trades,

      • (II) a company whose income consists wholly or mainly of profits or gains chargeable to tax under Case V of Schedule D, or

      • (III) a company whose business consists wholly or mainly of the holding of shares directly in a company which exists wholly or mainly for the purposes of carrying on a trade or trades or whose income consists wholly or mainly of profits or gains chargeable to tax under Case V of Schedule D,

    • (iii) where—

      • (I) in the case of an acquirer referred to in clause (I) of subparagraph (ii), the acquirer is, for the chargeable period, chargeable to tax under Case I of Schedule D in respect of profits or gains or losses and the full amount of any interest chargeable on the loan would be directly taken into account in computing the amount of those profits or gains or losses, or

      • (II) in the case of an acquirer referred to in clause (II) of subparagraph (ii), the acquirer is, for the chargeable period, chargeable to tax under Case V of Schedule D in respect of profits or gains or losses and the full amount of any interest chargeable on the loan would be directly taken into account in computing the amount of those profits or gains or losses, or

      • (III) in the case of an acquirer referred to in clause (III) of subparagraph (ii), the proceeds of the loan are used by the acquirer to lend to another person (referred to in this clause as the ‘second arrangement’) and, in the chargeable period, interest is receivable by the acquirer under the second arrangement, which is directly taken into account in computing profits or gains or losses of the acquirer that are chargeable to tax under Schedule D (and where the second arrangement involves a person with whom the acquirer is associated, the amount of interest directly taken into account in computing those profits or gains or losses is not less than an arm’s length amount), but the following clause provides an alternative to this clause in the case of an acquirer referred to in subparagraph (ii)(III), or

      • (IV) in the case of an acquirer referred to in clause (III) of subparagraph (ii), the proceeds of the loan are used by the acquirer to acquire ordinary shares directly in, or to subscribe for ordinary shares in, a company (in this clause referred to as a ‘relevant company’)—

      • (A) which exists wholly or mainly for the purposes of carrying on a trade or trades or a company whose income consists wholly or mainly of profits or gains chargeable to tax under Case V of Schedule D, and

      • (B) which, immediately following the acquisition or subscription, as the case may be, is a company with which the acquirer is associated,

      and arising from such acquisition, or subscription, as appropriate, of shares in the relevant company, the acquirer receives in the chargeable period, or in any period of three years that includes the chargeable period, an amount of dividends or other distributions, greater than a nominal amount, from the relevant company that are chargeable to tax under Schedule D or which would be chargeable to corporation tax but for section 129,

      and

    • (iv) the arrangement is entered into for bona fide commercial reasons and not as part of a scheme or arrangement the main purpose of which, or one of the main purposes of which, is the avoidance of tax.

  • (b) In the case of an acquirer referred to in clause (III) of paragraph (a)(ii), where, and to the extent that, the proceeds of a loan (in this paragraph referred to as the ‘replacement loan’) are used by the acquirer to repay a loan (referred to in this paragraph as the ‘original loan’)—

    • (i) which was provided under an arrangement that, under paragraph (a), was regarded as a qualifying loan arrangement for a chargeable period, and

    • (ii) the full proceeds of the original loan were used for a purpose specified in clause (III) or (IV) of paragraph (a)(iii),

    the proceeds of the replacement loan shall be deemed to be used for a purpose specified in clause (III) or (IV) of paragraph (a)(iii), as the case may be.

  • (c) Where, for a chargeable period, an arrangement is a qualifying loan arrangement—

    • (i) the supplier or the acquirer, as the case may be, shall, for the purposes of this section, be regarded as a party to a qualifying loan arrangement, but where clause (IV) of paragraph (a)(iii) or clause (III) of subsection (6)(b)(iii) applies in relation to the qualifying loan arrangement, the supplier or the acquirer, as the case may be, shall only be regarded as a party to a qualifying loan arrangement where they are both resident for the purposes of tax in the State, and

    • (ii) subsection (8) shall apply to the supplier as if the supplier has, for the chargeable period, profits or gains or losses that are chargeable to tax under Schedule D, other than under Case I or II of Schedule D, the computation of which takes account of the actual results of the qualifying loan arrangement.

• (6)

  • (a) In this subsection, a reference to a ‘debt’ is a reference to an amount of money owed by an acquirer to a supplier, which—

    • (i) arose directly from a supply of goods, services or assets under an arrangement to which section 835C(1) applies (referred to in this subsection as the ‘underlying arrangement’), and

    • (ii) is an amount of consideration for that supply and acquisition which, for bona fide commercial reasons, is unpaid.

  • (b) Where, for a chargeable period, the following is the case—

    • (i) a debt is owed by an acquirer to a supplier, which arose otherwise than in the course of a trade carried on by the supplier, and—

      • (I) where the acquirer is a company referred to in clause (I) or (II) of subparagraph (ii), the acquirer is within the charge to corporation tax and the supplier is—

      • (A) an individual who is resident in the State for the purposes of income tax, or

      • (B) a company within the charge to corporation tax,

      or

      - (II) where the acquirer is a company referred to in clause (III) of subparagraph (ii), both the supplier and the acquirer are companies within the charge to corporation tax,
      

    • (ii) the company who is the acquirer is—

      • (I) a company referred to in subsection (5)(a)(ii)(I),

      • (II) a company referred to in subsection (5)(a)(ii)(II), or

      • (III) a company referred to in subsection (5)(a)(ii)(III),

    • (iii) where—

      • (I) in the case of an acquirer referred to in clause (I) of subparagraph (ii), the acquirer is, for the chargeable period, chargeable to tax under Case I of Schedule D in respect of profits or gains or losses and the full amount of any interest chargeable on the debt would be directly taken into account in computing the amount of those profits or gains or losses, or

      • (II) in the case of an acquirer referred to in clause (II) of subparagraph (ii), the acquirer is, for the chargeable period, chargeable to tax under Case V of Schedule D in respect of profits or gains or losses and the full amount of any interest chargeable on the debt would be directly taken into account in computing the amount of those profits or gains or losses, or

      • (III) in the case of an acquirer referred to in clause (III) of subparagraph (ii), the debt arose directly from the acquirer acquiring ordinary shares in, or subscribing for ordinary shares in, a relevant company (as referred to in clause (IV) of subsection (5)(a)(iii)) and arising from such acquisition, or subscription, as appropriate, of shares in the relevant company, the acquirer receives in the chargeable period, or in any period of three years that includes the chargeable period, an amount of dividends or other distributions, greater than a nominal amount, from the relevant company that are chargeable to tax under Schedule D or which would be chargeable to corporation tax but for section 129,

      and

    • (iv) the arrangement which gave rise to the debt was entered into for bona fide commercial reasons and not as part of a scheme or arrangement the main purpose of which, or one of the main purposes of which, was the avoidance of tax,

    then the debt owed from the acquirer to the supplier shall be deemed to be a qualifying loan arrangement within the meaning of subsection (5) and subsection (5)(c) shall apply with any necessary modifications.

  • (c) An underlying arrangement, which gave rise to a debt which is regarded as a qualifying loan arrangement under paragraph (b), shall not be regarded as a qualifying loan arrangement by virtue of paragraph (b).

• (7) This section shall apply to an arrangement involving a supplier and an acquirer who are, in respect of that arrangement, qualifying relevant persons.

• (8) Where, in relation to an arrangement to which this section applies, for a chargeable period, a supplier or an acquirer, as the case may be, is chargeable to tax under Schedule D, other than under Case I or II of Schedule D, in respect of profits or gains or losses, the computation of which takes account of the actual results of the arrangement—

  • (a) the profits or gains or losses of the supplier or the acquirer, as the case may be, shall be computed on the basis that section 835C does not apply in respect of that particular arrangement, and

  • (b) section 835G(2) shall not apply to the supplier or acquirer, as the case may be, in respect of that particular arrangement.

• (9) Subsection (8) shall not apply in the case of an arrangement involving a supplier and an acquirer who are qualifying relevant persons (in this subsection referred to as the ‘first-mentioned arrangement’) which is made as part of, or in connection with any scheme involving the acquirer in relation to the first-mentioned arrangement, or a person associated with the acquirer, entering into an arrangement with a person or persons who are not qualifying relevant persons (in this subsection referred to as the ‘second-mentioned arrangement’) and the sole or main purpose of the first-mentioned arrangement is to directly or indirectly obtain a tax advantage in connection with the second-mentioned arrangement.

• (10) For the purposes of subsection (9), ‘tax advantage’ has the same meaning as in section 811C.

• (11) A supplier or an acquirer, as the case may be, shall maintain and have available such records as may reasonably be required for the purposes of determining whether the requirements of this section are met.”.

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

16. Amendment of Schedule 2 to Principal Act (machinery for assessment, charge and payment of tax under Schedule C and, in certain cases, Schedule D)

16. (1) Schedule 2 to the Principal Act is amended in Part 4—

• (a) in paragraph 14—

• (i) by substituting the following for subparagraph (1):

• “(1) Subject to Chapter 2 of Part 3 and subparagraph (3), every chargeable person shall, on making a payment of specified dividend income, deduct and retain a sum representing income tax at a rate of 25 per cent on that income and pay that income tax on behalf of the person entitled to that income.”,

and

• (ii) by inserting the following subparagraph after subparagraph (2):

• “(3) Subparagraph (1) shall not apply to a payment of specified dividend income to a company where that company—

  • (a) is beneficially entitled to that income, and

  • (b) is or will be within the charge to corporation tax in respect of that income.”,

• (b) in paragraph 15, by substituting the following for subparagraph (3):

• “(3) A return due under this Schedule shall be in a form prescribed by the Revenue Commissioners and shall include the following:

  • (a) the name and address of the person to whom the payment of the specified dividend income is made;

  • (b) the amount and type of the payment referred to in clause (a);

  • (c) the amount of income tax deducted in respect of the payment referred to in clause (a) in accordance with paragraph 14(1);

  • (d) a declaration to the effect that the return is correct and complete.”,

and

• (c) in paragraph 18, by substituting the following for subparagraph (1):

• “(1) A chargeable person shall keep records to distinguish the separate accounts of each of the persons entitled to receive specified dividend income and such records shall include—

  • (a) the name and address of the person entitled to receive specified dividend income,

  • (b) the amount and type of the specified dividend income payments paid to the person referred to in clause (a),

  • (c) the amounts of income tax deducted in respect of the payments referred to in clause (c) in accordance with paragraph 14(1), and

  • (d) in the case of amounts payable out of any public revenue to the person referred to in clause (a), particulars of the public revenue out of which each separate amount is payable.”.

• (2) Subsection (1), other than paragraph (a), shall come into operation on such day as the Minister for Finance may appoint by order.

• (3) Subsection (1)(a) shall come into operation on 1 January 2021.

17. Acceleration of wear and tear allowances for farm safety equipment

17.(1) The Principal Act is amended—

• (a) in Chapter 2 of Part 9, by inserting the following section after section 285C:

“Acceleration of wear and tear allowances for farm safety equipment

285D. (1) In this section—

‘eligible person’ means a person carrying on farming, the profits or gains of which are chargeable to tax in accordance with section 655;

‘farming’ has the same meaning as it has in Part 23, other than in section 664;

‘Minister’ means the Minister for Agriculture, Food and the Marine;

‘qualifying certificate’ means a certificate issued under subsection (4);

‘qualifying equipment’ means equipment of a type specified in column (1) of the table in Part 2 of Schedule 35 meeting the description specified in column (2) of that table opposite the reference to that equipment type in column (1) thereof;

‘qualifying expenditure’, in relation to an item of qualifying equipment, means the amount which, in the reasonable opinion of the Minister, is an appropriate purchase price;

‘relevant tax’, in relation to an eligible person—

• (a) where the eligible person is a company, means any corporation tax, and

• (b) where the eligible person is not a company, means any contributions paid under the Social Welfare Consolidation Act 2005, income tax or universal social charge;

‘Rescuing and Restructuring Guidelines’ means the Communication of the Commission on Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty¹¹;

‘SME’ has the same meaning as it has in Commission Regulation (EU) No. 702/2014 of 25 June 2014¹²;

‘undertaking’ means the relevant economic unit that would be regarded as an undertaking for the purposes of the Rescuing and Restructuring Guidelines;

‘undertaking in difficulty’ shall be construed in accordance with section 2.2 of the Rescuing and Restructuring Guidelines.

• (2) Where a person acquires qualifying equipment, the person may make an application to the Minister for a qualifying certificate in respect of the equipment.

• (3) A person making an application to the Minister under subsection (2) shall use the form provided by the Minister for that purpose and shall include the following information in the application:

  • (a) in respect of each item of qualifying equipment to which the application relates—

    • (i) a description of the equipment, and

    • (ii) the purchase price of the equipment;

  • (b) the name and address of the applicant; and

  • (c) such other information, specified in the form provided by the Minister, as the Minister considers necessary and appropriate for the purposes of determining—

    • (i) whether a certificate should be issued under subsection (4), and

    • (ii) the qualifying expenditure in respect of an item of qualifying equipment.

• (4) Where—

  • (a) a person makes an application to the Minister under subsection (2),

  • (b) the Minister is satisfied that the equipment concerned is qualifying equipment, and

  • (c) subsection (5) does not apply in respect of the equipment concerned,

  the Minister shall issue a certificate to the person.

• (5) This subsection shall apply in respect of qualifying equipment in respect of which an application is made under subsection (2) where the qualifying expenditure for that equipment exceeds an amount determined by the formula—

€5,000,000 - M

where—

M is an amount (which may be nil) equal to the aggregate qualifying expenditure, if any, exclusive of any amount of value-added tax, in respect of which—

- (a) a qualifying certificate has been issued prior to the date on which the application was made, in the year in which the application was received, and

- (b) a qualifying certificate would be issued, if an appeal of a decision, made prior to the date on which the application was made, in the year in which the application was received, was successful.

• (6) A qualifying certificate shall include the following information:

  • (a) in respect of each item of qualifying equipment to which the certificate relates—

    • (i) a description, and

    • (ii) the qualifying expenditure;

  • (b) a unique, sequential certificate identification number assigned by the Minister;

  • (c) the name and address of the person to whom the certificate is issued; and

  • (d) such other information as the Minister or the Revenue Commissioners consider necessary and appropriate.

• (7) The Minister shall provide the Revenue Commissioners, by 28 February each year, with the details of all qualifying certificates issued during the preceding year, including, in relation to each such certificate, the information specified in subsection (6).

• (8) Where the Minister, following application in that behalf by a person under subsection (2), decides—

  • (a) not to issue a qualifying certificate, or

  • (b) to issue a qualifying certificate specifying, as the qualifying expenditure in respect of an item of qualifying equipment to which the certificate relates, an amount which is lower than the amount of the purchase price of the item of equipment specified in the application,

  the Minister shall notify the person of that decision.

• (9) A notification under subsection (8) shall—

  • (a) state the reasons for the decision, and

  • (b) inform the person that—

    • (i) the person may appeal the decision, by notice in writing (in this section referred to as a ‘notice of appeal’), to the appeals officer (within the meaning of section 667G) within 21 days of the date of the notification,

    • (ii) the notice of appeal shall specify the grounds for the appeal,

    • (iii) the decision shall be suspended until—

      • (I) the decision becomes final under subsection (12), or

      • (II) the disposal of the appeal under this section.

• (10) A notice of appeal shall comply with subsection (9)(b)(i) and (ii) and shall be accompanied by such fee as may be determined by the Minister from time to time and published in such manner as the Minister considers appropriate, including on the internet.

• (11) Where the Minister makes a decision referred to in subsection (8), the decision shall be suspended until—

  • (a) where subsection (12) applies, the decision becomes final under that subsection, or

  • (b) where subsection (12) does not apply, the disposal of the appeal of that decision under this section.

• (12) If, on the expiration of the period of 21 days beginning on the date of a notification under subsection (8), no appeal under this section is made by the person notified under that subsection, the decision to which the notification relates is final.

• (13) Subsections (5) to (10) of section 667G shall apply to an appeal under this section as they apply to an appeal under that section.

• (14) Subject to subsections (15) and (16), where an eligible person—

  • (a) incurs, for the purpose of farming by that person, capital expenditure on qualifying equipment on or after 1 January 2021 and on or before 31 December 2023, and

  • (b) has been issued with a qualifying certificate in respect of that equipment,

  then, for any chargeable period a wear and tear allowance is to be made under section 284 in respect of any qualifying expenditure specified in that qualifying certificate, subsection (2) of that section shall apply as if the reference in paragraph (ad) of that subsection to 12.5 per cent were a reference to 50 per cent.

• (15) Subsection (14) shall not apply where the eligible person concerned—

  • (a) is an undertaking in difficulty,

  • (b) is part of an undertaking part of which is subject to an outstanding recovery order following a previous decision of the Commission of the European Union that declared an aid illegal and incompatible with the internal market, or

  • (c) is part of an undertaking that is not an SME.

• (16) The aggregate amount of relief granted to a person under this section shall not exceed €500,000.

• (17) This subsection applies to a person in respect of a chargeable period where the aggregate of the amount of the relief granted to the person in that chargeable period and in previous chargeable periods is greater than €60,000.

• (18) Notwithstanding section 851A, where subsection (17) applies to a person in respect of a chargeable period, the Revenue Commissioners may disclose the following information in respect of the year in which the chargeable period ends:

  • (a) the name of the person;

  • (b) the sector of activity at NACE group level, within the meaning of Regulation (EC) No. 1893/2006 of the European Parliament and of the Council of 20 December 2006¹³, as amended by Regulation (EC) No. 295/2008 of the European Parliament and of the Council of 11 March 2008¹⁴ and Regulation (EU) 2019/1243 of the European Parliament and of the Council of 20 June 2019¹⁵;

  • (c) the territorial unit, within the meaning of the NUTS Level 2 classification specified in Annex 1 to Regulation (EC) No. 1059/2003 of the European Parliament and of the Council of 26 May 2003¹⁶ as amended by Regulation (EC) No. 1888/2005 of the European Parliament and of the Council of 26 October 2005¹⁷, Commission Regulation (EC) No. 105/2007 of 1 February 2007¹⁸, Regulation (EC) No. 176/2008 of the European Parliament and of the Council of 20 February 2008¹⁹, Regulation (EC) No. 1137/2008 of the European Parliament and of the Council of 22 October 2008²⁰, Commission Regulation (EU) No. 31/2011 of 17 January 2011²¹, Council Regulation (EU) No. 517/2013 of 13 May 2013²², Commission Regulation (EU) No. 1319/2013 of 9 December 2013²³, Commission Regulation (EU) No. 868/2014 of 8 August 2014²⁴, Commission Regulation (EU) No. 2016/2066 of 21 November 2016²⁵, and Commission Delegated Regulation (EU) 2019/1755 of 8 August 2019²⁶, in which the person is located; and

  • (d) the year in which the relief is granted.

• (19) For the purposes of subsections (16) and (17), the amount of relief granted to a person in a chargeable period shall be the amount determined by the formula—

R = A - B

where—

R is the amount of the relief granted to the person in the chargeable period,

A is the amount of relevant tax that would be payable by the eligible person for the chargeable period, but for subsection (14), and

B is the amount of relevant tax payable by the eligible person for that chargeable period.”,

• (b) in section 667F(1), by substituting “for the purposes of appeals under sections 285D and 667G” for “for the purposes of an appeal under section 667G”, and

• (c) by inserting the following Schedule after Schedule 34:

“SCHEDULE 35

Section 285D

PART 1

Definitions

In this Schedule—

‘farm vehicle’ means an agricultural tractor, agricultural self-propelled machine, all-terrain vehicle or utility terrain vehicle;

‘machinery Directive’ means Directive 2006/42/EC of the European Parliament and of the Council of 17 May 2006 on machinery, and amending Directive 95/16/EC (recast) ²⁷.

PART 2

Qualifying equipment referred to in section 285D

Equipment type (1)	Description (2)
Hydraulic linkage arms mounted tractor jacking systems.	An agricultural tractor jacking system that uses either the rear or front mounted lower linkage arms to enable an agricultural tractor to be lifted so that one or more wheels may be replaced on the agricultural tractor. The jacking system shall bear CE marking in accordance with Article 16 of the machinery Directive and be in conformity with the requirements of that Directive.
Big bag (equal to or greater than 500kg) lifter, with or without integral bag cutting system.	Lifting system for bags of fertiliser or seed of 500kg mass or greater. The system shall be mounted on either the three-point linkage of an agricultural tractor, front loader of an agricultural tractor or mounted on a fertiliser or seed drill. The lifter shall be capable of securely holding the bag and raising the bag over a fertilizer spreader or seed drill. The system may have an integral system for automatically opening the bag. The lifting system shall bear CE marking in accordance with Article 16 of the machinery Directive and be in conformity with the requirements of that Directive.
Chemical storage cabinets.	A storage cabinet fitted with a locking device and integral bund for the storage of pesticides and other chemicals. The cabinet may be made of metal or hard plastic, or a combination of both. The cabinet shall be suitably vented to prevent a build-up of fumes.
Animal anti-backing gate for use in cattle crush or race.	Device to be mounted on the side of a cattle crush or cattle crush race to prevent an animal from reversing along the cattle crush or cattle crush race. The device shall allow an animal to pass up along the cattle crush or cattle crush race and shall be either automatically or manually moved into position once an animal has passed.
Quick hitch mechanism for rear and front three-point linkage to enable hitching of implements without need to descend from tractor.	A one-part or two-part system to enable the hitching of implements to an agricultural tractor three-point linkage without having to descend from the agricultural tractor. The system shall be connected to the three-point hydraulic linkage of the agricultural tractor and enable the agricultural tractor to link to an implement. The system shall bear CE marking in accordance with Article 16 of the machinery Directive and be in conformity with the requirements of that Directive.
Provision of access lift, hoist or integrated ramp to farm vehicle, including modified entry when required.	Provision of an integrated ramp, lift or hoist to facilitate access to a farm vehicle by a disabled person. The system may incorporate a modified side or rear entry to enable access. The lift or hoist system shall bear CE marking in accordance with Article 16 of the machinery Directive and be in conformity with the requirements of that Directive.
Wheelchair restraints.	Provision of wheelchair restraints within a farm vehicle.
Wheelchair docking station.	Provision of wheelchair docking station within a farm vehicle.
Modified controls to enable full hand operation of a farm vehicle.	Extensive reconfiguration of primary controls necessary to enable a farm vehicle to be driven and operated by a disabled person.
Modified seating to enable operation of a farm vehicle.	Provision of an extensively modified seat to enable operation of a farm vehicle by a disabled person.
Additional steps to farm vehicle or machinery to provide easier access.	Additional steps to farm vehicle or machinery to provide easier access. The additional steps shall bear CE marking in accordance with Article 16 of the machinery Directive and be in conformity with the requirements of that Directive.
Modified farm vehicle or machinery controls to enable control by hand or foot.	Extensive reconfiguration of controls necessary to enable a farm vehicle or farm machinery to be operated by a disabled person.
Hydraulically located lower three-point linkage arms.	Provision of a hydraulic system to control the location of the lower three-point linkage arms of a farm vehicle.

.”.

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

Chapter 5 Corporation Tax

18. Amendment of section 288 of Principal Act (balancing allowances and balancing charges)

18. (1) Section 288 of the Principal Act is amended, in subsection (3C), by substituting “incurred before 14 October 2020 on the provision” for “incurred on the provision”.

• (2) Subsection (1) shall have effect as on and from 14 October 2020.

19. Amendment of section 481 of Principal Act (relief for investment in films)

19. Section 481 of the Principal Act is amended in subsection (1B)(b) —

• (a) in subparagraph (i), by substituting “2021” for “2020”,

• (b) in subparagraph (ii), by substituting “after 31 December 2021 but on or before 31 December 2022” for “after 31 December 2020 but on or before 31 December 2021”,

• (c) in subparagraph (iii), by substituting “after 31 December 2022 but on or before 31 December 2023” for “after 31 December 2021 but on or before 31 December 2022”, and

• (d) in subparagraph (iv), by substituting “2023” for “2022”.

20. Amendment of Part 35B of Principal Act (controlled foreign companies)

20. (1) The Principal Act is amended by inserting the following section after section 835Y:

“Non-cooperative jurisdictions: modified application of sections 835T, 835U and 835V

835YA. (1) In this section, ‘listed territory’ means a territory included in Annex 1 of the Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes²⁸, as replaced by the EU list of non-cooperative jurisdictions for tax purposes - Report by the Code of Conduct Group (business taxation) suggesting amendments to the Annexes to the Council conclusions of 18 February 2020²⁹.

• (2) Where, in an accounting period of a controlled foreign company, the territory in which the controlled foreign company is resident is a listed territory, sections 835T, 835U and 835V shall not apply in respect of that accounting period.”.

• (2) Subsection (1) shall apply in respect of an accounting period beginning on or after 1 January 2021.

21. Amendment of Part 35C of Principal Act (hybrid mismatches)

21. (1) Section 835AA of the Principal Act is amended—

• (a) in subsection (2) —

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

• “(e) where—

  • (i) both enterprises are entities,

  • (ii) one enterprise (which is other than a non-consolidating entity) is included in the same consolidated financial statements as the other enterprise, and

  • (iii) the consolidated financial statements referred to in subparagraph (ii) are prepared under—

    • (I) international accounting standards, or

    • (II) Irish generally accepted accounting practice,”,

and

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

• “(f) where—

  • (i) both enterprises are entities, and

  • (ii) one enterprise (which is other than a non-consolidating entity)—

    • (I) is—

    • (A) not included in consolidated financial statements, or

    • (B) included in consolidated financial statements prepared other than under an accounting practice referred to in paragraph (e),

    and

    - (II) would, if consolidated financial statements were prepared under the accounting practice referred to in paragraph (e)(iii)(I), be included in the same consolidated financial statements as the other enterprise,”,
    

• (b) in subsection (6), by substituting “Subject to subsection (7), references in this Part” for “References in this Part”, and

• (c) by inserting the following subsection after subsection (6):

• “(7) References in this Part to a transaction between associated enterprises shall not include a reference to a transaction between enterprises who were associated enterprises at the time the transaction was entered into or formed, but are neither—

  • (a) associated enterprises at the time the payment arises under the transaction, nor

  • (b) associated enterprises at the time a deduction in respect of the payment referred to in paragraph (a) arises,

  and it is reasonable to consider that the arrangement as a result of which those enterprises ceased to be associated enterprises was entered into for bona fide commercial reasons and does not form part of any arrangement of which the main purpose, or one of the main purposes, is to avoid the application of this Part.”.

• (2) Section 835AB of the Principal Act is amended—

• (a) in subsection (1) —

• (i) in paragraph (c), by deleting “or”,

• (ii) in paragraph (d), by substituting “two or more such hybrid entities, or” for “two or more such hybrid entities,”, and

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

• “(e) where the entity is an entity on which a controlled foreign company charge or foreign company charge is made in respect of two or more hybrid entities, two or more such hybrid entities,”,

and

• (b) in subsection (3) —

• (i) in subparagraph (i), by deleting “or”,

• (ii) in subparagraph (ii), by substituting “two or more such hybrid entities, or” for “two or more such hybrid entities,”, and

• (iii) by inserting the following subparagraph after subparagraph (ii):

• “(iii) where the entity referred to in subsection (1) is an entity on which a controlled foreign company charge or foreign company charge is made in respect of two or more hybrid entities, two or more such hybrid entities,”.

• (3) Section 835AL of the Principal Act is amended—

• (a) in subsection (1), by substituting “Subject to subsection (1A), a payment to a hybrid entity” for “A payment to a hybrid entity”, and

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

• “(1A) A payment to a hybrid entity deduction without inclusion mismatch outcome shall not arise under subsection (1) in respect of a payment to a hybrid entity where the participator is an entity that, under the laws of the territory in which it is established, is exempt from tax which generally applies to profits or gains in that territory.”.

22. Amendment of section 769Q of Principal Act (application)

22. Section 769Q of the Principal Act is amended by substituting “1 January 2023” for “1 January 2021”.

Chapter 6 Capital Gains Tax

23. Amendment of section 541 of Principal Act (debts)

23. (1) Section 541 of the Principal Act is amended by inserting the following subsection after subsection (6):

• “(6A)

  • (a) Notwithstanding subsection (6), where a debt owed by a bank which is not in the currency of the State, and which is represented by a sum standing to the credit of a person in an account in the bank, is transferred by the person in whole or in part to another account of that person in the bank concerned, or in any other bank, in the same currency, the transfer (referred to in paragraph (b) as a ‘transfer to which paragraph (a) applies’) shall be treated as if it were made for a consideration of such amount as would secure that neither a gain nor a loss would accrue to that person on that transfer.

  • (b) On any disposal of the debt or part of the debt by the person who is the holder of the account referred to in paragraph (a), other than any further transfer to which paragraph (a) applies, the acquisition cost of the debt or part of the debt taken into account in computing the amount of any gain accruing to that person on the disposal shall be determined as if the transfer, or any further transfer, to which paragraph (a) applies had not occurred.”.

• (2) This section applies to disposals made on or after the date of the passing of this Act.

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

24. (1) Section 597AA of the Principal Act is amended—

• (a) in subsection (1)(a), by substituting the following definition for the definition of “relevant individual”:

“‘relevant individual’ means an individual—

• (a) who has been the beneficial owner of an asset or an interest in an asset to which subparagraph (i) of the definition of ‘chargeable business asset’ in subsection (2)(a) applies for a continuous period of not less than 3 years in the 5 years immediately prior to the disposal of that asset, or

• (b) who has been the beneficial owner of a holding of ordinary shares to which subparagraph (ii) of the definition of ‘chargeable business asset’ in subsection (2)(a) applies for a continuous period of not less than 3 years at any time prior to the disposal of those shares;”,

and

• (b) in subsection (2)(a)(ii), by substituting the following clause for clause (A):

• “(A) has owned not less than 5 per cent of the ordinary shares for a continuous period of not less than 3 years at any time prior to the disposal of those shares, and”.

• (2) This section shall apply to disposals of chargeable business assets made on or after 1 January 2021.

25. Amendment of section 629 of Principal Act (deferral of exit tax)

25. (1) Section 629(9) of the Principal Act is amended by substituting the following paragraph for paragraph (a):

• “(a) Simple interest shall be payable in respect of an amount of tax which is due and payable and which remains unpaid, and shall be calculated, from the specified date to the date of payment, for any day or part of a day during which that amount of tax remains unpaid (and by reference to the outstanding balance of that amount, as distinct from being by reference to an amount of a particular instalment due) at the prevailing rate specified in the Table to subsection (2)(c)(ii) of section 1080.”.

• (2) This section shall apply to amounts of tax referred to in section 629 of the Principal Act which remain unpaid on or after 14 October 2020.

PART 2 Excise

26. Rates of tobacco products tax

26. The Finance Act 2005 is amended with effect as on and from 14 October 2020 by substituting the following for Schedule 2:

“SCHEDULE 2

Rates of Tobacco Products Tax

(With effect as on and from 14 October 2020)

[image omitted]

”.

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

27. (1) The Finance Act 1999 is amended with effect as on and from 14 October 2020—

• (a) in section 96(1B), by substituting “A is the amount to be charged per tonne of CO2 emitted, being €33.50 in the case of petrol, aviation gasoline, and heavy oil used as a propellant or for air navigation or for private pleasure navigation, and €26 in the case of each other description of mineral oil in Schedule 2A” for “A is the amount, €26, 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 14 October 2020)

[image omitted]

”,

and

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

“SCHEDULE 2A

Carbon Charge

(With effect as on and from 14 October 2020)

[image omitted]

”,

• (2) The Finance Act 1999 is further amended with effect as on and from 1 May 2021—

• (a) in section 96—

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

• “(1A)

  • (a) Where a rate is specified in Schedule 2A for any description of mineral oil, that rate, referred to in this Chapter as the ‘carbon charge’, is included in the rate of tax specified in Schedule 2 for that description of mineral oil.

  • (b) The rate of tax per 1,000 litres specified for each description of mineral oil, other than vehicle gas in Schedule 2A, is in proportion to the emissions of CO2 from the combustion of the description of mineral oil concerned.

  • (c) The rate of tax per megawatt hour at gross calorific value specified for vehicle gas in Schedule 2A is in proportion to the emissions of CO2 from the combustion of natural gas.”,

and

• (ii) by deleting subsections (1B) and (1C),

• (b) in section 98(1) —

• (i) by substituting “rate specified in the Table to this subsection” for “rate, for heavy oil of €71.32 per 1,000 litres, and for liquefied petroleum gas of €48.06 per 1,000 litres”, and

• (ii) by inserting the following table to that subsection:

“TABLE

[image omitted]

”,

• (c) by substituting the following schedule for Schedule 2 (amended by subsection (1)(b)):

“SCHEDULE 2

Rates of Mineral Oil Tax

[image omitted]

”,

and

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

“SCHEDULE 2A

Carbon Charge

[image omitted]

”,

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

28. Section 67 of the Finance Act 2010 is amended with effect as on and from 1 May 2021—

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

• “(1) Subject to the provisions of this Chapter and any regulations made under it, a duty of excise, to be known as natural gas carbon tax, shall be charged, levied and paid at the rate specified in column (2) of the Table to this subsection with effect as on and from the date specified in column (1) of that Table on all natural gas, other than natural gas subject to mineral oil tax under section 95(1)(b) of the Finance Act 1999, supplied in the State by a supplier.

TABLE

Rate of Natural Gas Carbon Tax

[image omitted]

”,

and

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

• “(3) The rate of tax per megawatt hour at gross calorific value for natural gas specified in the Table to subsection (1) is in proportion to the emissions of CO2 from the combustion of natural gas.”.

29. Amendment of Chapter 3 of Part 3 of, and Schedule 1 to, Finance Act 2010 (solid fuel carbon tax)

29. The Finance Act 2010 is amended with effect as on and from 1 May 2021—

• (a) by substituting the following section for section 78:

“78. (1) Subject to the provisions of this Chapter and any regulations made under it, a duty of excise, to be known as solid fuel carbon tax, shall be charged, levied and paid at the rate specified in column (2) of Schedule 1 with effect as on and from the date specified in column (1) of that Schedule in respect of each description of solid fuel specified in Schedule 1 supplied in the State by a supplier.

• (2) The rate of tax per tonne for each description of solid fuel specified in Schedule 1 is in proportion to the emissions of CO2 from the combustion of the solid fuel concerned.”,

and

• (b) by substituting the following schedule for Schedule 1:

“SCHEDULE 1

Rates of Solid Fuel Carbon Tax

[image omitted]

”,

30. Amendment of section 104 of Finance Act 2001 (reliefs)

30. (1) Section 104 of the Finance Act 2001 is amended in subsection (1) —

• (a) by inserting the following paragraph after paragraph (b):

• “(ba) to the armed forces of a State party to the North Atlantic Treaty (signed at Washington on 4 April 1949) in the State, but not the Defence Forces, for the use of those armed forces, for the civilian staff accompanying them or for supplying their messes or canteens;”,

and

• (b) by inserting the following paragraph after paragraph (ba) (inserted by paragraph (a)):

• “(bb) to the armed forces of a Member State (other than the Defence Forces) in the State, for the use of those armed forces, for the civilian staff accompanying them or for supplying their messes or canteens, when such forces take part in a defence effort carried out for the implementation of an activity of the European Union under the common security and defence policy as set out in Section 2 of Chapter 2 of Title V of the Treaty on European Union;”.

• (2) Paragraph (b) of subsection (1) shall come into operation on 1 July 2022.

31. Waiver of excise duty on renewal of certain liquor licences, public dancing licences and certificates of registration of clubs

31. (1) Subject to subsection (3), no duty of excise shall be chargeable, leviable or payable under section 43 of the Finance (1909-10) Act 1910 on the renewal, for the period from 1 October 2020 to 30 September 2021, of the following licences for the sale of intoxicating liquor specified in the First Schedule to that Act:

• (a) retailers’ on-licences;

• (b) passenger vessel licences;

• (c) railway restaurant car licences;

• (d) passenger aircraft licences.

• (2) Subject to subsection (3), no duty of excise shall be chargeable, leviable or payable—

• (a) under section 171(1) of the Finance Act 2001 on the renewal, for the period from 1 October 2020 to 30 September 2021, of a licence granted under section 2 of the Intoxicating Liquor (National Concert Hall) Act 1983,

• (b) under section 105(1) of the Finance Act 2000 on the renewal, for the period from 1 October 2020 to 30 September 2021, of a licence granted under section 62 of the National Cultural Institutions Act 1997,

• (c) under section 21(5) of the Intoxicating Liquor Act 2003 on the renewal, for the period from 1 October 2020 to 30 September 2021, of a licence issued under section 21(3) of that Act,

• (d) under section 1(7) of the Intoxicating Liquor (Breweries and Distilleries) Act 2018 on the renewal, for the period from 1 October 2020 to 30 September 2021, of a producer’s retail licence issued under section 1(2) of that Act authorising the sale of intoxicating liquor in accordance with section 1(6)(a) of that Act, or

• (e) under section 1(8) of the Intoxicating Liquor (National Conference Centre) Act 2010 on the renewal, for the period from 1 October 2020 to 30 September 2021, of a licence issued under section 1(2) of that Act.

• (3) Subsections (1) and (2) shall apply to licences referred to in those subsections that expired on 30 September 2020.

• (4) No duty of excise shall be chargeable, leviable or payable—

• (a) under section 78(2) of the Finance Act 1980 on the renewal, in the year 2020, of a public dancing licence granted under section 2 of the Public Dance Halls Act 1935, or

• (b) under section 48(2) of the Finance Act 1989 on the renewal, in the year 2020, of a certificate of registration of a club granted under the Registration of Clubs (Ireland) Act 1904.

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

32. Section 96 of the Finance Act 2001 is amended, in subsection (1), in the definition of “registered consignor”—

• (a) in paragraph (a) —

• (i) by deleting “, other than an authorised warehousekeeper,” and

• (ii) by deleting “to another Member State”,

and

• (b) in paragraph (b) —

• (i) by deleting “, other than an authorised warehousekeeper,” and

• (ii) by deleting “from that other Member State”.

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

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

• (a) by substituting the following subparagraph for subparagraph (i) of paragraph (a):

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

  • (I) in case it is a vehicle in respect of which the level of CO2 emissions measured in the manner referred to in subparagraph (ii) of paragraph (a) of the definition of CO2 emissions in section 130 is confirmed by reference to any document produced in support of the declaration for registration, by reference to Table 1 to this subsection,

  • (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 €740, whichever is the greater, or

  - (III) in case it is a vehicle in respect of which the level of CO2 emissions measured in the manner referred to in subparagraph (i) or (iii) of paragraph (a), or paragraph (b), of the definition of CO2 emissions in section 130 is confirmed by reference to any document produced in support of the declaration for registration and the level of CO2 emissions measured in the manner referred to in subparagraph (ii) of paragraph (a) of that definition is not so confirmed, by reference to Table 1 to this subsection, subject to the modification that the CO2 emissions for the vehicle shall be adjusted—
  

  • (A) in respect of such a vehicle designed to use heavy oil as a propellant, in accordance with the following formula:

  X (1.1405) + 12.858, or

  • (B) in respect of any other such vehicle, in accordance with the following formula:

  X (0.9227) + 34.554,

  where X is the level of carbon dioxide emissions for the vehicle measured in the manner referred to in subparagraph (i) or (iii) of paragraph (a), or paragraph (b), as the case may be, of the definition of CO2 emissions in section 130,

  and where, in respect of a vehicle, more than one level of carbon dioxide emissions is measured in the manner referred to in a subparagraph or paragraph of the definition of CO2 emissions in section 130, the highest level of carbon dioxide emissions measured in that manner shall be the CO2 emissions for the vehicle for the purpose of clause (I) or (III), as the case may be, and”,

• (b) by substituting the following Table for Table 1 to that subsection:

“Table 1

	CO2 Emissions (CO2 g/km)	Percentage payable of the value of the vehicle
	0g/km up to and including 50g/km	7% or €140 whichever is the greater
	More than 50g/km up to and including 80g/km	9% or €180 whichever is the greater
	More than 80g/km up to and including 85g/km	9.75% or €195 whichever is the greater
	More than 85g/km up to and including 90g/km	10.5% or €210 whichever is the greater
	More than 90g/km up to and including 95g/km	11.25% or €225 whichever is the greater
	More than 95g/km up to and including 100g/km	12% or €240 whichever is the greater
	More than 100g/km up to and including 105g/km	12.75% or €255 whichever is the greater
	More than 105g/km up to and including 110g/km	13.5% or €270 whichever is the greater
	More than 110g/km up to and including 115g/km	14.25% or €285 whichever is the greater
	More than 115g/km up to and including 120g/km	15% or €300 whichever is the greater
	More than 120g/km up to and including 125g/km	15.75% or €315 whichever is the greater
	More than 125g/km up to and including 130g/km	16.5% or €330 whichever is the greater
	More than 130g/km up to and including 135g/km	17.25% or €345 whichever is the greater
	More than 135g/km up to and including 140g/km	18% or €360 whichever is the greater
	More than 140g/km up to and including 145g/km	19.5% or €390 whichever is the greater
	More than 145g/km up to and including 150g/km	21% or €420 whichever is the greater
	More than 150g/km up to and including 155g/km	23.5% or €470 whichever is the greater
	More than 155g/km up to and including 170g/km	26% or €520 whichever is the greater
	More than 170g/km up to and including 190g/km	31% or €620 whichever is the greater
	More than 190g/km	37% or €740 whichever is the greater

”,

and

• (c) by substituting the following Table for Table 2 to that subsection:

“Table 2

	NOx emissions (NOx mg/km or mg/kWh)	Amount payable per mg/km or mg/kWh
	The first 0-40 mg/km or mg/kWh, as the case may be	€5
	The next 40 mg/km or mg/kWh or part thereof, as the case may be, up to 80 mg/km or mg/kWh, as the case may be	€15
	The remainder above 80 mg/km or mg/kWh, as the case may be	€25

”.

• (2) Subsection (1) shall come into operation on 1 January 2021.

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

34. (1) Section 135C of the Finance Act 1992 is amended, in subsection (3), by substituting the following subparagraph for subparagraph (ii) of paragraph (b):

• “(ii) in a case in which the open market selling price (within the meaning of section 133) of the vehicle is—

  • (I) less than or equal to €40,000, €5,000,

  • (II) greater than €40,000, but less than €50,000, the amount calculated in accordance with the following formula:

  5000 - [image omitted], and

  • (III) greater than or equal to €50,000, €0.”.

• (2) Subsection (1) shall come into operation on 1 January 2021.

35. Amendment of Part I of Schedule to Act of 1952

35. (1) In this section “Act of 1952” means the Finance (Excise Duties) (Vehicles) Act 1952.

• (2) Subsection (3) shall apply as respects licences taken out under section 1 of the Act of 1952 for periods beginning on or after 1 January 2021.

• (3) Part I of the Schedule to the Act of 1952 is amended in paragraph 6—

• (a) by substituting the following subparagraph for subparagraph (d):

• “(d) subject to subparagraphs (f) to (n), any vehicle which is—

• (i) a new vehicle which is registered between 1 July 2008 and 31 December 2020 under section 131 of the Finance Act 1992 as a category M1 vehicle, or

• (ii) registered outside of the State between 1 July 2008 and 31 December 2020 and which is subsequently registered in the State under section 131 of the Finance Act 1992 on or after 1 January 2021 as a category M1 vehicle,

and which has a CO2 emissions level measured in the manner referred to in paragraph (a)(i) or (iii) of the definition of ‘CO2 emissions’ in section 130 of the Finance Act 1992—

	(I)	of 0 grams per kilometre,	€120
	(II)	exceeding 0 grams per kilometre but not exceeding 80 grams per kilometre,	€170
	(III)	exceeding 80 grams per kilometre but not exceeding 100 grams per kilometre,	€180
	(IV)	exceeding 100 grams per kilometre but not exceeding 110 grams per kilometre,	€190
	(V)	exceeding 110 grams per kilometre but not exceeding 120 grams per kilometre,	€200
	(VI)	exceeding 120 grams per kilometre but not exceeding 130 grams per kilometre,	€270
	(VII)	exceeding 130 grams per kilometre but not exceeding 140 grams per kilometre,	€280
	(VIII)	exceeding 140 grams per kilometre but not exceeding 155 grams per kilometre,	€400
	(IX)	exceeding 155 grams per kilometre but not exceeding 170 grams per kilometre,	€600
	(X)	exceeding 170 grams per kilometre but not exceeding 190 grams per kilometre,	€790
	(XI)	exceeding 190 grams per kilometre but not exceeding 225 grams per kilometre,	€1,250
	(XII)	exceeding 225 grams per kilometre,	€2,400
	(XIII)	that—
		(A) cannot be confirmed by the Revenue Commissioners by reference to the relevant EC type-approval certificate or EC certificate of conformity, and
		(B) the Revenue Commissioners are not satisfied of by reference to any other document produced in support of the declaration for registration pursuant to section 131 of the Finance Act 1992,	€2,400”,

• (b) in paragraph (n), by substituting “December 2011,” for “December 2011.”, and

• (c) by inserting the following subparagraph after subparagraph (n):

• “(o) any vehicle which is—

  • (i) a new vehicle which is registered on or after 1 January 2021 under section 131 of the Finance Act 1992 as a category M1 vehicle, or

  • (ii) registered outside of the State between 1 July 2008 and 31 December 2020 and which is subsequently registered in the State under section 131 of the Finance Act 1992 on or after 1 January 2021 as a category M1 vehicle,

  and which has a CO2 emissions level measured in the manner referred to in paragraph (a)(ii) of the definition of ‘CO2 emissions’ in section 130 of the Finance Act 1992—

  	(I)	of 0 grams per kilometre,	€120
  	(II)	exceeding 0 grams per kilometre but not exceeding 50 grams per kilometre,	€140
  	(III)	exceeding 50 grams per kilometre but not exceeding 80 grams per kilometre,	€150
  	(IV)	exceeding 80 grams per kilometre but not exceeding 90 grams per kilometre,	€160
  	(V)	exceeding 90 grams per kilometre but not exceeding 100 grams per kilometre,	€170
  	(VI)	exceeding 100 grams per kilometre but not exceeding 110 grams per kilometre,	€180
  	(VII)	exceeding 110 grams per kilometre but not exceeding 120 grams per kilometre,	€190
  	(VIII)	exceeding 120 grams per kilometre but not exceeding 130 grams per kilometre,	€200
  	(IX)	exceeding 130 grams per kilometre but not exceeding 140 grams per kilometre,	€210
  	(X)	exceeding 140 grams per kilometre but not exceeding 150 grams per kilometre,	€270
  	(XI)	exceeding 150 grams per kilometre but not exceeding 160 grams per kilometre,	€280
  	(XII)	exceeding 160 grams per kilometre but not exceeding 170 grams per kilometre,	€420
  	(XIII)	exceeding 170 grams per kilometre but not exceeding 190 grams per kilometre,	€600
  	(XIV)	exceeding 190 grams per kilometre but not exceeding 200 grams per kilometre,	€790
  	(XV)	exceeding 200 grams per kilometre but not exceeding 225 grams per kilometre,	€1,250
  	(XVI)	exceeding 225 grams per kilometre,	€2,400
  	(XVII)	that—
  		(A) cannot be confirmed by the Revenue Commissioners by reference to the relevant EC type-approval certificate or EC certificate of conformity, and
  		(B) the Revenue Commissioners are not satisfied of by reference to any other document produced in support of the declaration for registration pursuant to section 131 of the Finance Act 1992,	€2,400”.

36. Amendment of section 92 of Finance Act 1989

36. (1) Section 92 of the Finance Act 1989 is amended—

• (a) in subsection (2)(a), by deleting “including such further medical criteria in relation to disabilities as may be considered necessary,”, and

• (b) in subsection (5) —

• (i) in the definition of “primary medical certification”, by substituting “accordingly;” for “accordingly.”, and

• (ii) by inserting the following definition after the definition of “primary medical certification”:

“‘severely and permanently disabled person’ means a person who satisfies one or more of the following criteria:

• (a) the person is wholly or almost wholly without the use of both legs;

• (b) the person is wholly without the use of one of their legs and almost wholly without the use of the other leg such that they are severely restricted as to movement of their lower limbs;

• (c) the person has no hands or no arms;

• (d) the person has one leg or no legs;

• (e) the person is wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

• (f) the person has the medical condition of dwarfism and has serious difficulties in the movement of their lower limbs.”.

• (2) This section shall come into operation on 1 January 2021.

PART 3 Value-Added Tax

37. Interpretation (Part 3)

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

38. Amendment of section 2 of Principal Act (interpretation - general)

38. Section 2(1) of the Principal Act is amended by substituting the following for the definition of “immovable goods”:

“‘immovable goods’ has the same meaning as ‘immovable property’ has in Article 13b (inserted by Council Implementing Regulation 1042/2013 of 7 October 2013³⁰) of Council Implementing Regulation 282/2011/EU of 15 March 2011³¹;”.

39. Amendment of section 46 of Principal Act (rates of tax)

39. The Principal Act is amended in section 46(1) with effect from 1 November 2020—

• (a) in paragraph (c), by substituting “paragraphs (ca) and (cb)” for “paragraph (ca)”, and

• (b) by inserting the following paragraph after paragraph (ca):

• “(cb) during the period from 1 November 2020 to 31 December 2021, 9 per cent in relation to goods or services of a kind specified in paragraphs 3(1), 3(3), 7(b) to (e), 8, 11 and 13(3) of Schedule 3 on which tax would, but for this paragraph, be chargeable in accordance with paragraph (c);”.

40. Amendment of section 86 of Principal Act (special provisions for tax invoiced by flat-rate farmers)

40. Section 86 of the Principal Act is amended in subsection (1) with effect from 1 January 2021 by substituting “5.6 per cent” for “5.4 per cent”.

41. Tax representative

41. The Principal Act is amended—

• (a) in section 5(1)(b), by substituting “94(3), 108C and 109A” for “94(3) and 108C”,

• (b) by inserting the following section after section 109:

“Tax representative

109A. (1) Subject to subsections (2) and (3), the Revenue Commissioners may, where it appears requisite to them to do so for the protection of the revenue, serve on a taxable person a notice in writing requiring the person to appoint a representative (in this section referred to as a ‘tax representative’) who is established in the Community to be the person who shall be liable for the payment of tax due and payable by the taxable person.

• (2) Subsection (1) shall apply where the taxable person is not established in the State and no legal instrument relating to mutual assistance similar in scope to that provided for in Directive 76/308/EEC³² and Regulation (EC) No 1798/2003³³ exists with the country in which that taxable person is established.

• (3) Subsection (1) shall not apply to a taxable person not established within the Community who has opted for the special scheme provided for under Section 2 of Chapter 6 of Title XII of the VAT Directive.

• (4) A tax representative appointed in accordance with subsection (1) shall be jointly and severally liable with the taxable person referred to in that subsection for the tax due and payable on the taxable supplies of the taxable person and shall be liable to pay that tax as if it were tax due and payable by the tax representative in accordance with Chapter 3 of Part 9.

• (5) A notice served under subsection (1) shall—

  • (a) require the taxable person to furnish details of the appointment of the tax representative to the Revenue Commissioners within 21 days of receipt of the notice,

  • (b) specify the form in which the details referred to in paragraph (a) shall be furnished to the Revenue Commissioners, and

  • (c) inform the taxable person of the consequences under section115(8C) of failing to comply with the notice.”,

• (c) in section 111(1) —

• (i) in paragraph (a), by inserting “or 109A(4)” after “section 108C(3)”, and

• (ii) in subparagraph (i)(I), by inserting “or 109A(4)” after “section 108C(3)”,

• (d) in section 115—

• (i) in subsection (1), by inserting the following paragraph after paragraph (b):

• “(c) Paragraph (a) shall not apply to a person, being a tax representative appointed in accordance with section 109A, where—

• (i) that person is jointly and severally liable by virtue of section 109A, and

• (ii) the penalty which would otherwise arise under paragraph (a) only relates to the tax for which that person is jointly and severally liable by virtue of that section.”,

and

• (ii) by inserting the following subsection after subsection (8B):

• “(8C) A person who fails to comply with a notice served under section 109A(1) shall be liable to a penalty of €4,000.”,

and

• (e) in section 116, by inserting the following subsection after subsection (1A):

• “(1B) This section shall not apply to a person, being a tax representative appointed in accordance with section 109A, where—

  • (a) that person is jointly and severally liable by virtue of section 109A, and

  • (b) the penalty which would otherwise arise under this section only relates to tax for which that person is jointly and severally liable by virtue of that section.”.

42. Amendment of section 24, Schedule 1 and Schedule 2 of Principal Act

42. (1) The Principal Act is amended—

• (a) in section 24, by inserting the following subsection after subsection (2):