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Ireland

Finance Act, 2001

What is this act about?

This law, the Finance Act, 2001, primarily deals with various aspects of taxation in Ireland, including income tax, corporation tax, and capital gains tax, as well as excise duties. It introduces new provisions and amends existing ones related to these taxes.

Who it applies to: Individuals subject to income tax, capital gains tax, and those benefiting from or affected by various tax reliefs; Companies subject to corporation tax and capital gains tax.

At a glance

Country
Ireland
Area of law
Tax law
Articles
244
Source
irishstatutebook.ie
Text retrieved
Explanation updated

What does this act regulate?

  • Income Tax, Corporation Tax, and Capital Gains Tax.
  • Excise duties, including their interpretation, liability, and payment.
  • Specific tax reliefs, exemptions, and allowances for individuals and companies.
  • The movement and warehousing of excisable products within the community.

Who does this act apply to?

  • Individuals subject to income tax, capital gains tax, and those benefiting from or affected by various tax reliefs.
  • Companies subject to corporation tax and capital gains tax.
  • Businesses and individuals involved in the production, distribution, or consumption of excisable products.

What are the key points?

  • It includes provisions for tax credits and alterations of income tax rates.
  • It addresses reliefs for health expenses, rent, and trade union subscriptions.
  • It details the taxation of certain perquisites and special savings incentive accounts.
  • It outlines rules for the warehousing, liability, and payment of excise duties, and mutual assistance for recovery of claims.

Tax law

8
Health (Homes For Incapacitated Persons) Act, 1964
Planning and Development (Amendment) Act 2025
Finance (Miscellaneous Provisions) Act, 1935
Finance (Local Property Tax) (Amendment) Act 2015
Finance Act, 1952
Customs and Excise (Miscellaneous Provisions) Act, 1988
Disclosure of Certain Information For Taxation and Other Purposes Act, 1996
Finance Act, 1924

Tax law

Legal text

Legal text
Contents (244)
  1. Section 1
  2. Section 2
  3. Section 3
  4. Section 4
  5. Section 5
  6. Section 6
  7. Section 7
  8. Section 8
  9. Section 9
  10. Section 10
  11. Section 11
  12. Section 12
  13. Section 13
  14. Section 14
  15. Section 15
  16. Section 16
  17. Section 17
  18. Section 18
  19. Section 19
  20. Section 20
  21. Section 21
  22. Section 22
  23. Section 23
  24. Section 24
  25. Section 25
  26. Section 26
  27. Section 27
  28. Section 28
  29. Section 29
  30. Section 30
  31. Section 31
  32. Section 32
  33. Section 33
  34. Section 34
  35. Section 35
  36. Section 36
  37. Section 37
  38. Section 38
  39. Section 39
  40. Section 40
  41. Section 41
  42. Section 42
  43. Section 43
  44. Section 44
  45. Section 45
  46. Section 46
  47. Section 47
  48. Section 48
  49. Section 49
  50. Section 50
  51. Section 51
  52. Section 52
  53. Section 53
  54. Section 54
  55. Section 55
  56. Section 56
  57. Section 57
  58. Section 58
  59. Section 59
  60. Section 60
  61. Section 61
  62. Section 62
  63. Section 63
  64. Section 64
  65. Section 65
  66. Section 66
  67. Section 67
  68. Section 68
  69. Section 69
  70. Section 70
  71. Section 71
  72. Section 72
  73. Section 73
  74. Section 74
  75. Section 75
  76. Section 76
  77. Section 77
  78. Section 78
  79. Section 79
  80. Section 80
  81. Section 81
  82. Section 82
  83. Section 83
  84. Section 84
  85. Section 85
  86. Section 86
  87. Section 87
  88. Section 88
  89. Section 89
  90. Section 90
  91. Section 91
  92. Section 92
  93. Section 93
  94. Section 94
  95. Section 95
  96. Section 96
  97. Section 97
  98. Section 98
  99. Section 99
  100. Section 100
  101. Section 101
  102. Section 102
  103. Section 103
  104. Section 104
  105. Section 105
  106. Section 106
  107. Section 107
  108. Section 108
  109. Section 109
  110. Section 110
  111. Section 111
  112. Section 112
  113. Section 113
  114. Section 114
  115. Section 115
  116. Section 116
  117. Section 117
  118. Section 118
  119. Section 119
  120. Section 120
  121. Section 121
  122. Section 122
  123. Section 123
  124. Section 124
  125. Section 125
  126. Section 126
  127. Section 127
  128. Section 128
  129. Section 129
  130. Section 130
  131. Section 131
  132. Section 132
  133. Section 133
  134. Section 134
  135. Section 135
  136. Section 136
  137. Section 137
  138. Section 138
  139. Section 139
  140. Section 140
  141. Section 141
  142. Section 142
  143. Section 143
  144. Section 144
  145. Section 145
  146. Section 146
  147. Section 147
  148. Section 148
  149. Section 149
  150. Section 150
  151. Section 151
  152. Section 152
  153. Section 153
  154. Section 154
  155. Section 155
  156. Section 156
  157. Section 157
  158. Section 158
  159. Section 159
  160. Section 160
  161. Section 161
  162. Section 162
  163. Section 163
  164. Section 164
  165. Section 165
  166. Section 166
  167. Section 167
  168. Section 168
  169. Section 169
  170. Section 170
  171. Section 171
  172. Section 172
  173. Section 173
  174. Section 174
  175. Section 175
  176. Section 176
  177. Section 177
  178. Section 178
  179. Section 179
  180. Section 180
  181. Section 181
  182. Section 182
  183. Section 183
  184. Section 184
  185. Section 185
  186. Section 186
  187. Section 187
  188. Section 188
  189. Section 189
  190. Section 190
  191. Section 191
  192. Section 192
  193. Section 193
  194. Section 194
  195. Section 195
  196. Section 196
  197. Section 197
  198. Section 198
  199. Section 199
  200. Section 200
  201. Section 201
  202. Section 202
  203. Section 203
  204. Section 204
  205. Section 205
  206. Section 206
  207. Section 207
  208. Section 208
  209. Section 209
  210. Section 210
  211. Section 211
  212. Section 212
  213. Section 213
  214. Section 214
  215. Section 215
  216. Section 216
  217. Section 217
  218. Section 218
  219. Section 219
  220. Section 220
  221. Section 221
  222. Section 222
  223. Section 223
  224. Section 224
  225. Section 225
  226. Section 226
  227. Section 227
  228. Section 228
  229. Section 229
  230. Section 230
  231. Section 231
  232. Section 232
  233. Section 233
  234. Section 234
  235. Section 235
  236. Section 236
  237. Section 237
  238. Section 238
  239. Section 239
  240. Section 240
  241. Section 241
  242. Section 242
  243. Section 243
  244. Section 244A

Finance Act, 2001 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 2001 Finance Act, 2001 Finance Act, 2001 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Open PDFOscail PDF Print Full ActPriontáil an tAcht Iomlán Number 7 of 2001 FINANCE ACT, 2001 ARRANGEMENT OF SECTIONS

PART I

Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation Section

Section 1

Interpretation (Part 1).

Chapter 2

Income Tax

Section 2

Tax credits.

Section 3

Alteration of rates of income tax.

Section 4

Age exemption.

Section 5

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

Section 6

Amendment of section 126 (tax treatment of certain benefits payable under Social Welfare Acts) of Principal Act.

Section 7

Amendment of section 467 (employed person taking care of incapacitated individual) of Principal Act.

Section 8

Amendment of section 469 (relief for health expenses) of Principal Act.

Section 9

Amendment of section 473 (allowance for rent paid by certain tenants) of Principal Act.

Section 10

Amendment of section 477 (relief for service charges) of Principal Act.

Section 11

Relief for trade union subscriptions.

Section 12

Amendment of Part 16 (income tax relief for investment in corporate trades — business expansion scheme and seed capital scheme) of Principal Act.

Section 13

Employee share ownership trusts — deceased beneficiaries.

Section 14

Amendment of Schedule 13 (accountable persons for purposes of Chapter 1 of Part 18) to Principal Act.

Section 15

Approved share option schemes.

Section 16

Amendment of provisions relating to employee share schemes.

Section 17

Provisions relating to certain approved profit sharing schemes and employee share ownership trusts.

Section 18

Amendment of Part 30 (occupational pension schemes, retirement annuities, purchased life annuities and certain pensions) of Principal Act.

Section 19

Amendment of section 470 (relief for insurance against expenses of illness) of Principal Act.

Section 20

Relief for premiums under qualifying long-term care policies, etc.

Section 21

Taxation of certain perquisites.

Section 22

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

Section 23

Tax relief at source for certain interest.

Section 24

Provision of certain information: transitional.

Section 25

Amendment of section 120A (exemption from benefit-in-kind of certain childcare facilities) of Principal Act.

Section 26

Amendment of section 669A (interpretation (Chapter 3)) of Principal Act.

Section 27

Amendment of section 669C (effect of sale of quota) of Principal Act.

Section 28

Amendment of section 530 (interpretation (Chapter 2)) of Principal Act.

Section 29

Relief for fees paid for third level education, etc.

Section 30

Seafarer allowance, etc.

Section 31

Amendment of section 823 (deduction for income earned outside the State) of Principal Act.

Section 32

Rent-a-room relief.

Chapter 3

Income Tax, Corporation Tax and Capital Gains Tax

Section 33

Special savings incentive accounts.

Section 34

Amendment of section 97 (computational rules and allowable deductions) of Principal Act.

Section 35

Amendment of section 177 (conditions as to residence and period of ownership) of Principal Act.

Section 36

Amendment of section 198 (certain interest not to be chargeable) of Principal Act.

Section 37

Treatment of certain interest payments.

Section 38

Amendment of Part 20 (companies' chargeable gains) of Principal Act.

Section 39

Amendment of section 590 (attribution to participants of chargeable gains accruing to non-resident company) of Principal Act.

Section 40

Amendment of Schedule 18A (restriction on set-off of preentry losses) to Principal Act.

Section 41

Amendment of Schedule 24 (relief from income tax and corporation tax by means of credit in respect of foreign tax) to Principal Act.

Section 42

Amendment of section 89 (valuation of trading stock at discontinuance of trade) of Principal Act.

Section 43

Dividend withholding tax.

Section 44

Amendment of provisions relating to exploration and exploitation activities.

Section 45

Donations to approved bodies, etc.

Section 46

Amendment of section 665 (interpretation (Chapter 2)) of Principal Act.

Section 47

Amendment of section 666 (deduction for increase in stock values) of Principal Act.

Section 48

Amendment of section 667 (special provisions for qualifying farmers) of Principal Act.

Section 49

Amendment of section 668 (compulsory disposal of livestock) of Principal Act.

Section 50

Amendment of section 310 (allowances in respect of certain contributions to capital expenditure of local authorities) of Principal Act.

Section 51

Wear and tear allowances for licences for public hire vehicles.

Section 52

Wear and tear allowances for certain sea fishing boats.

Section 53

Wear and tear allowances.

Section 54

Amendment of section 274 (balancing allowances and balancing charges) of Principal Act.

Section 55

Amendment of Chapter 4 (interest payment by certain deposit takers) of Part 8 of Principal Act.

Section 56

Amendment of section 838 (special portfolio investment accounts) of Principal Act.

Section 57

Taxation of certain savings in credit unions and other financial institutions.

Section 58

Amendment of Chapter 9 (park and ride facilities and certain related developments) of Part 10 of Principal Act.

Section 59

Amendment of Part 10 (income tax and corporation tax: reliefs for renewal and improvement of certain urban areas, certain resort areas and certain islands) of Principal Act.

Section 60

Living over the shop scheme.

Section 61

Amendment of Part 11 (capital allowances and expenses for certain road vehicles) of Principal Act.

Section 62

Amendment of provisions relating to treatment of certain losses and certain capital allowances.

Section 63

Relief for certain rented accommodation.

Section 64

Capital allowances for certain hospitals.

Section 65

Amendment of section 420 (losses, etc. which may be surrendered by means of group relief) of Principal Act.

Section 66

Amendment of section 594 (foreign life assurance and deferred annuities: taxation and returns) of Principal Act.

Section 67

Amendment of Part 26 (life assurance companies) of Principal Act.

Section 68

Amendment of section 723 (special investment policies) of Principal Act.

Section 69

Amendment of section 730A (profits of life business: new basis) of Principal Act.

Section 70

Amendment of Chapter 5 (policyholders — new basis) of Part 26 of Principal Act.

Section 71

Amendment of section 731 (chargeable gains accruing to unit trusts) of Principal Act.

Section 72

Amendment of Part 27 (unit trusts and offshore funds) of Principal Act.

Section 73

Amendment of section 737 (special investment schemes) of Principal Act.

Section 74

Amendment of Chapter 1A (investment undertakings) of Part 27 of Principal Act.

Section 75

Amendment of Schedule 2B (investment undertakings declarations) of Principal Act.

Section 76

Amendment of section 843 (capital allowances for buildings used for third level educational purposes) of Principal Act.

Section 77

Changeover to calendar year of assessment.

Section 78

Provisions relating to making of returns of income and chargeable gains and payment of income tax and capital gains tax.

Section 79

Amendment of provisions relating to Dublin Docklands Development Authority.

Section 80

Amendment of Chapter 10 (designated areas of certain towns) of Part 10 of Principal Act.

Section 81

Capital allowances for hotels.

Chapter 4

Corporation Tax

Section 82

Amendment of provisions relating to a shipping trade.

Section 83

Amendment of section 22A (reduction of corporation tax in respect of certain trading income) of Principal Act.

Section 84

Foundation for Investing in Communities.

Section 85

Amendment of section 130 (matters to be treated as distributions) of Principal Act.

Section 86

Amendment of section 222 (certain dividends from a non-resident subsidiary) of Principal Act.

Section 87

Amendment of Chapter 2 of Part 14 of Principal Act.

Section 88

Amendment of Part 36 of Principal Act.

Section 89

Amendment of section 847 (tax relief for certain branch profits) of Principal Act.

Section 90

Restriction of certain losses and charges.

Section 91

Close company surcharges

Chapter 5

Capital Gains Tax

Section 92

Amendment of Chapter 6 (transfers of business assets) of Part 19 of Principal Act.

Section 93

Amendment of Chapter 7 (other reliefs and exemptions) of Part 19 of Principal Act.

Section 94

Amendment of section 649A (relevant disposals: rate of charge) of Principal Act.

Section 95

Amendment of section 652 (non-application of reliefs on replacement of assets in case of relevant disposals) of Principal Act.

PART 2

Excise Consolidation and Modernisation of General Excise Law

Chapter 1

Interpretation, Liability and Payment

Section 96

Interpretation (Part 2).

Section 97

Excisable products (Part 2).

Section 98

Application of enactments.

Section 99

Suspension arrangements, liability and payment.

Section 100

Duties to apply to excisable products released for consumption in another Member State.

Section 101

All excisable products are liable for all liabilities, penalties and forfeitures of a warehousekeeper.

Section 102

Treatment of excisable products released for consumption.

Section 103

Payment.

Section 104

Reliefs.

Section 105

Repayments.

Section 106

Remission of losses.

Section 107

General mutual assistance.

Section 108

Mutual assistance for the recovery of claims.

Section 109

Warehousing.

Chapter 2

Intra-Community Movement

Section 110

Scope (Chapter 2).

Section 111

Treatment of excisable products released for consumption in another Member State.

Section 112

Provisions relating to vendors.

Section 113

Tax representatives.

Section 114

Application of Article 5.2 of Council Directive No. 92/12/EEC.

Section 115

Movement of excisable products under a suspension arrangement from the State to other Member States.

Section 116

Movement of excisable products under a suspension arrangement to the State from other Member States.

Section 117

Accompanying documents.

Chapter 3

Offences, Penalties and Proceedings

Section 118

Interpretation (Chapter 3).

Section 119

Evasion of excise duty.

Section 120

Amendment of section 34 (amendments relative to penalties) of Finance Act, 1963.

Section 121

Offences generally.

Section 122

Offences in relation to false returns, claims etc.

Section 123

Resisting, obstructing, giving false information.

Section 124

Penalty.

Section 125

Forfeiture.

Section 126

Proceedings in relation to offences.

Section 127

Condemnation.

Section 128

Proceedings for condemnation by court.

Section 129

Damages.

Section 130

Mitigation.

Section 131

Presumptions.

Section 132

False evidence, punishment as for perjury.

Chapter 4

Powers of Officers

Section 133

Interpretation (Chapter 4).

Section 134

Power to stop vehicles.

Section 135

Power to examine and search vehicles and to take samples.

Section 136

Entry and search of premises.

Section 137

General provision concerning samples.

Section 138

Obligation to answer certain questions, in respect of certain tobacco products.

Section 139

Power of arrest and detention of persons.

Section 140

Detention of goods and vehicles.

Section 141

Seizure of goods and vehicles.

Section 142

Notice of seizure.

Section 143

Notice of claim.

Section 144

Power to deal with seizures, before and after condemnation.

Chapter 5

Miscellaneous

Section 145

Appeals to Commissioners.

Section 146

Appeals to Appeal Commissioners.

Section 147

Payment of duty pending appeal.

Section 148

Exclusion of criminal matters.

Section 149

Repeals and revocations (Part 2).

Section 150

Saver.

Section 151

Continuity.

Section 152

Commencement.

Section 153

Regulations.

PART 3

Customs and Excise Miscellaneous

Section 154

Tobacco products.

Section 155

Hydrocarbons and substitute motor fuel.

Section 156

Rates of mineral oil tax.

Section 157

Amendment of section 10 (tobacco products manufacturer's licence) of Finance (Excise Duty on Tobacco Products) Act, 1977.

Section 158

Amendment of section 10A (offences in relation to tax stamps) of Finance (Excise Duty on Tobacco Products) Act. 1977.

Section 159

Amendment of section 11 (offences) of Finance (Excise Duty on Tobacco Products) Act, 1977.

Section 160

Amendment of section 21 (duties on hydrocarbon oil) of Finance Act, 1935.

Section 161

Amendment of section 72 (removal of prescribed marker, etc. from hydrocarbon oil) of Finance Act, 1986.

Section 162

Amendment of section 57 (removal of substances mixed with goods liable to excise duty) of Finance Act, 1988.

Section 163

Amendment of section 94 (interpretation, Chapter 1) of Finance Act, 1999.

Section 164

Amendment of section 99 (passenger road services) of Finance Act, 1999.

Section 165

Amendment of section 100 (reliefs from mineral oil tax for certain mineral oils) of Finance Act, 1999.

Section 166

Amendment of section 102 (offences) of Finance Act, 1999.

Section 167

Deferment of duty on beer, made wine, wine and spirits.

Section 168

Remission or repayment in respect of vehicle registration tax on certain hybrid electric vehicles.

Section 169

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

Section 170

Excise duty on mineral oil licence.

Section 171

Imposition of duty on liquor licence for National Concert Hall.

Section 172

Tax clearance in relation to excise licences.

Section 173

Amendment of section 49 (grant of licences and date of expiration of licences) of Finance (1909-10) Act, 1910.

Section 174

Amendment of section 18 (firearm certificate duty) of Finance Act, 1964.

Section 175

Amendment of Chapter III (amusement machine licence duty) of Part II of Finance Act, 1992.

Section 176

Amendment of section 43 (gaming machine licence duty) of Finance Act, 1975.

Section 177

Amendment of section 34 (amendments relative to penalties) of Finance Act, 1963.

Section 178

Amendment of section 89 (amendment of penalties under section 186 (illegally importing) of Customs Consolidation Act, 1876) of Finance Act, 1997.

Section 179

Amendment of Customs Consolidation Act, 1876.

Section 180

Repeal of the Customs Consolidation Act, 1876, Amendment Act, 1890.

PART 4

Value-Added Tax

Section 181

Interpretation (Part 4).

Section 182

Amendment of section 3 (supply of goods) of Principal Act.

Section 183

Amendment of section 5 (supply of services) of Principal Act.

Section 184

Amendment of section 8 (taxable persons) of Principal Act.

Section 185

Amendment of section 10A (margin scheme goods) of Principal Act.

Section 186

Amendment of section 10B (special scheme for auctioneers) of Principal Act.

Section 187

Amendment of section 11 (rates of tax) of Principal Act.

Section 188

Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

Section 189

Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

Section 190

Amendment of section 12B (special scheme for means of transport supplied by taxable dealers) of Principal Act.

Section 191

Adjustment of tax deductible in certain circumstances.

Section 192

Amendment of section 13A (supplies to, and intra-Community acquisitions and imports by, certain taxable persons) of Principal Act.

Section 193

Amendment of section 17 (invoices) of Principal Act.

Section 194

Amendment of section 19 (tax due and payable) of Principal Act.

Section 195

Amendment of section 21 (interest) of Principal Act.

Section 196

Amendment of section 22 (estimation of tax due for a taxable period) of Principal Act.

Section 197

Amendment of section 27 (fraudulent returns, etc.) of Principal Act.

Section 198

Repeal of section 37 (substitution of agent, etc., for person not resident in State) of Principal Act.

Section 199

Amendment of First Schedule to Principal Act.

Section 200

Amendment of Second Schedule to Principal Act.

PART 5

Stamp Duties

Section 201

Interpretation (Part 5).

Section 202

Amendment of section 58 (security for future advances, how to be charged) of Principal Act.

Section 203

Repeal of section 60 (short-term life insurance policies) of Principal Act.

Section 204

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

Section 205

Dublin Docklands Development Authority.

Section 206

Transfer of site to child.

Section 207

Amendment of section 86 (certain loan stock) of Principal Act.

Section 208

Rent-a-room, etc.

Section 209

Amendment of Chapter 2 of Part 7 of Principal Act.

Section 210

Approved voluntary body.

Section 211

National Building Agency Limited.

Section 212

Certain policies of insurance.

Section 213

Amendment of Schedule 1 to Principal Act.

Section 214

Amendment of section 2 (commencement (Part 1)) of Finance (No. 2) Act, 2000.

PART 6

Capital Acquisitions Tax

Section 215

Interpretation (Part 6).

Section 216

Amendment of section 18 (taxable value of a taxable gift or taxable inheritance) of Principal Act.

Section 217

Amendment of section 19 (value of agricultural property) of Principal Act.

Section 218

Amendment of section 55 (exemption of certain objects) of Principal Act.

Section 219

Amendment of section 57 (exemption of certain securities) of Principal Act.

Section 220

Amendment of section 59C (exemption relating to certain dwellings) of Principal Act.

Section 221

Gifts and inheritances taken by foster children.

Section 222

Gifts and inheritances taken by adopted children from natural parent.

Section 223

Amendment of section 61 (payment of money standing in names of two or more persons) of Principal Act.

Section 224

Amendment of section 85 (exemption of specified collective investment undertakings) of Finance Act, 1989.

Section 225

Abolition of probate tax.

Section 226

Amendment of section 133 (exemption of certain policies of assurance) of Finance Act, 1993.

Section 227

Amendment of section 124 (interpretation (Chapter I)) of Finance Act, 1994.

Section 228

Amendment of section 127 (relevant business property) of Finance Act, 1994.

Section 229

Amendment of provisions relating to the taxation of discretionary trusts.

PART 7

Anti-Speculative Property Tax

Section 230

Abolition of anti-speculative property tax.

PART 8

Miscellaneous

Section 231

Interpretation (Part 8).

Section 232

Amendment of Chapter 3 (other obligations and returns) of Part 38 of Principal Act.

Section 233

Amendment of section 1078 (revenue offences) of Principal Act.

Section 234

Amendment of section 1094 (tax clearance in relation to certain licences) of Principal Act.

Section 235

Amendment of Chapter 6 (electronic transmission of returns of income, profits, etc., and of other Revenue returns) of Part 38 of Principal Act.

Section 236

Certificates in court proceedings.

Section 237

Amendment of Chapter 4 (collection and recovery of income tax on certain emoluments (PAYE system)) of Part 42 of Principal Act.

Section 238

Amendment of section 1002 (deduction from payments due to defaulters of amounts due in relation to tax) of Principal Act.

Section 239

Amendment of section 1006A (offset between taxes) of Principal Act.

Section 240

Amendment of enactments consequent on changeover to Euro.

Section 241

Deletion of certain references to Bord Telecom Éireann and Irish Telecommunications Investments plc. in Principal Act.

Section 242

Care and management of taxes and duties.

Section 243

Short title, construction and commencement.

SCHEDULE 1 Amendments Consequential on Changes in Personal Reliefs SCHEDULE 2 Changeover to Calendar Year OF Assessment SCHEDULE 3 Repeals and Revocations Relating to Excise Law SCHEDULE 4 Rates of Excise Duty on Tobacco Products SCHEDULE 5 Amendment of Enactments Consequent on Changeover to Euro Acts Referred to Auctioneers and House Agents Act, 1947 1947, No. 10 Betting Act, 1931 1931, No. 27 Building Societies Act, 1989 1989, No. 17 Capital Acquisitions Tax Act, 1976 1976, No. 8 Central Bank Act, 1971 1971, No. 24 Companies Act, 1963 1963, No. 33 Companies Acts, 1963 to 1990 Companies Acts, 1963 to 1999 Companies (Amendment) (No. 2) Act, 1999 1999, No. 30 Credit Union Act, 1997 1997, No. 15 Criminal Procedure Act, 1967 1967, No. 12 Customs Act, 1956 1956, No. 7 Customs (Amendment) Act, 1942 1942, No. 21 Customs and Excise (Miscellaneous Provisions) Act, 1988 1988, No. 10 Customs and Inland Revenue Act, 1878 41 & 42 Vict., c. 15 Customs and Inland Revenue Act, 1879 42 & 43 Vict., c. 21 Customs and Inland Revenue Act, 1881 44 & 45 Vict., c. 12 Customs and Inland Revenue Act, 1888 51 & 52 Vict., c. 8 Customs Consolidation Act, 1876 39 & 40 Vict., c. 36 Customs Consolidation Act, 1876, Amendment Act, 1890 53 & 54 Vict., c. 56 Customs-Free Airport Act, 1947 1947, No. 5 Customs-Free Airport (Amendment) Act, 1958 1958, No. 29 Defence (Amendment) Act, 1990 1990, No. 6 Diseases of Animals Act, 1966 1966, No. 6 Electronic Commerce Act, 2000 2000, No. 27 European Communities (Amendment) Act, 1993 1993, No. 25 Excise Act, 1828 9 Geo. 4, c. 44 Excise Management Act, 1827 7 & 8 Geo. 4, c. 53 Excise Management Act, 1834 4 & 5 Will. 4, c. 51 Excise Management Act, 1841 4 & 5 Vict., c. 20 Family Law Act, 1995 1995, No. 26 Family Law (Divorce) Act, 1996 1996, No. 33 Finance Act, 1900 63 & 64 Vict., c. 7 Finance Act, 1901 10 1 Edw. 7, c. 7 Finance Act, 1902 10 2 Edw. 7, c. 7 Finance Act, (1909-10) Act, 1910 10 Edw. 7 & 1 Geo. 5, c. 8 Finance Act, 1911 1 & 2 Geo. 5, c. 48 Finance Act, 1915 5 & 6 Geo. 5, c. 26 Finance Act, 1921 11 & 12 Geo. 5, c. 32 Finance Act, 1926 1926, No. 35 Finance Act, 1929 1929, No. 32 Finance Act, 1933 1933, No. 15 Finance Act, 1935 1935, No. 28 Finance Act, 1936 1936, No. 31 Finance Act, 1938 1938, No. 25 Finance Act, 1939 1939, No. 18 Finance Act, 1940 1940, No. 14 Finance Act, 1946 1946, No. 15 Finance Act, 1950 1950, No. 18 Finance Act, 1963 1963, No. 23 Finance Act, 1964 1964, No. 15 Finance Act, 1966 1966, No. 17 Finance Act, 1971 1971, No. 23 Finance Act, 1974 1974, No. 27 Finance Act, 1975 1975, No. 6 Finance Act, 1976 1976, No. 16 Finance Act, 1980 1980, No. 14

Finance Act, 1982 1982, No. 14 Finance Act, 1983 1983, No. 15 Finance Act, 1984 1984, No. 9 Finance Act, 1985 1985, No. 10 Finance Act, 1986 1986, No. 13 Finance Act, 1987 1987, No. 10 Finance Act, 1988 1988, No. 12 Finance Act, 1989 1989, No. 10 Finance Act, 1992 1992, No. 9 1Finance (No. 2) Act, 1992 992, No. 28 Finance Act, 1993 1993, No. 13 Finance Act, 1994 1994, No. 13 Finance Act, 1995 1995, No. 8 Finance Act, 1996 1996, No. 9 Finance Act, 1997 1997, No. 22 Finance Act, 1998 1998, No. 3 Finance (No. 2) Act, 1998 1998, No. 15 Finance Act, 1999 1999, No. 2 Finance Act, 2000 2000, No. 3 Finance (No. 2) Act, 2000 2000, No. 19 Finance (Excise Duty on Tobacco Products) Act, 1977 1977, No. 32 Firearms Acts, 1925 and 1964 Firearms Acts, 1925 to 2000 Free Ports Act, 1986 1986, No. 13 Garda Síochána Act, 1977 1977, No. 24 Health Act, 1970 1970, No. 1 Health (Eastern Regional Health Authority) Act, 1999 1999, No. 13 Higher Education Authority Act, 1971 1971, No. 22 Housing Acts, 1966 to 1998 Housing (Miscellaneous Provisions) Act, 1979 1979, No. 27 Housing (Miscellaneous Provisions) Act, 1992 1992, No. 12 Illicit Distillation (Ireland) Act, 1831 1 & 2 Will. 4, c. 55 Immature Spirits (Restriction) Act, 1947 1947, No. 12 Industrial Development Act, 1995 1995, No. 28 Inland Revenue Act, 1880 43 & 44 Vict., c. 20 Inland Revenue Regulations Act, 1890 53 & 54 Vict., c. 21 Insurance Act, 1936 1936, No. 45 Intoxicating Liquor Act, 1988 1988, No. 16 Intoxicating Liquor Act, 2000 2000, No. 17 Intoxicating Liquor (National Concert Hall) Act, 1983 1983, No. 34 Investment Intermediaries Act, 1995 1995, No. 11 Local Authorities (Higher Education Grants) Acts, 1968 to 1992 Local Government (Planning and Development) Acts, 1963 to 1999 Local Government (Sanitary Services) Act, 1964 1964, No. 29 Medical Practitioners Act, 1978 1978, No. 4 National Treasury Management Agency Act, 1990 1990, No. 18 Petroleum and Other Minerals Development Act, 1960 1960, No. 7 Planning and Development Act, 2000 2000, No. 30 Probation of Offenders Act, 1907 7 Edw. 7, c. 17 Qualifications (Education and Training) Act, 1999 1999, No. 26 Revenue (No. 2) Act, 1865 28 & 29 Vict., c. 96 Revenue Act, 1867 30 & 31 Vict., c. 90 Revenue Act, 1884 47 & 48 Vict., c. 62 Revenue Act, 1889 52 & 53 Vict., c. 42 Revenue Act, 1898 61 & 62 Vict., c. 46 Revenue Act, 1906 6 Edw. 7, c. 20 Road Traffic Act, 1961 1961, No. 24 Road Traffic Act, 1968 1968, No. 25 Road Transport Act, 1932 1932, No. 2 Scientific and Technological Education (Investment) Fund Act, 1997 1997, No. 46 Scientific and Technological Education (Investment) Fund (Amendment) Act, 1998

1998, No. 53 Social Welfare Act, 2000 2000, No. 4 Social Welfare (Consolidation) Act, 1993 1993, No. 27 Spirits Act, 1880 43 & 44 Vict., c. 24 Spirits (Ireland) Act, 1854 17 & 18 Vict., c. 89 Stamp Duties Consolidation Act, 1999 1999, No. 31 Stock Exchange Act, 1995 1995, No. 9 Taxes Consolidation Act, 1997 1997, No. 39 Tourism Traffic Act, 1939 1939, No. 24 Tourism Traffic Act, 1957 1957, No. 27 Trade Union Act, 1941 1941, No. 22 Trade Union Act, 1942 1942, No. 23 Trustee Savings Banks Act, 1989 1989, No. 21 Údarás na Gaeltachta Act, 1979 1979, No. 5 Unit Trusts Act, 1990 1990, No. 37 Value-Added Tax Act, 1972 1972, No. 22 Value-Added Tax Acts, 1972 to 2000 Value-Added Tax (Amendment) Act, 1978 1978, No. 34 Number 7 of 2001 FINANCE ACT, 2001 AN ACT TO PROVIDE FOR THE IMPOSITION, REPEAL, REMISSION, ALTERATION AND REGULATION OF TAXATION, OF STAMP DUTIES AND OF DUTIES RELATING TO EXCISE AND OTHERWISE TO MAKE FURTHER PROVISION IN CONNECTION WITH FINANCE INCLUDING THE REGULATION OF CUSTOMS. [30th March, 2001] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART 1

Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation Interpretation (Part 1).

1.—In this Part “Principal Act” means the Taxes Consolidation Act, 1997 .

Chapter 2

Income Tax Tax credits.

2.—(1) Where an individual is entitled under a provision of the Principal Act mentioned in column (1) of the Table to this subsection to have the income tax to be charged on the individual, other than in accordance with the provisions of section 16(2) of the Principal Act, reduced for the year of assessment 2001 or any subsequent year of assessment and the amount of the reduction would, but for this section, be an amount which is the lesser of— (a) an appropriate percentage of an amount (in this section referred to as the “standard-rated allowance”) specified in column (2) of that Table, and (b) the amount which reduces that liability to nil, the amount of the reduction in accordance with paragraph (a) shall, in lieu of being the standard-rated allowance, be the amount of the tax credit specified in column (3) or column (4), as may be appropriate, of the Table opposite the mention of the amount in column (2).

TABLE Statutory Provision Standard rated allowance for the year Tax credit for the year 2001 Tax credit for the year 2002 and subsequent years

(1)

(2)

(3)

(4)

Section 461

(married person) ... ... £9,400 £1,628 €2,794 (widowed person bereaved in the year of assessment) ... £9,400 £1,628 €2,794 (single person) ... ... £4,700 £814 €1,397 Section 461A (additional relief for certain widowed persons) £1,000 £148 €254

Section 462

(additional relief for single parents) ... ... ... £4,700 £814 €1,397

Section 463

(additional relief for widowed parent following death of spouse) (1st year) ... ... ... £10,000 £2,000 €2,540 (2nd year) ... ... ... £8,000 £1,600 €2,032 (3rd year) ... ... ... £6,000 £1,200 €1,524 (4th year) ... ... ... £4,000 £800 €1,016 (5th year) ... ... ... £2,000 £400 €508

Section 464

(aged person) (married person) ... ... £1,600 £238 €408 (single person) ... ... £800 £119 €204

Section 465

(incapacitated child) ... ... £1,600 £238 €408

Section 466

(dependent relative) ... ... £220 £33 €56 Section 466A (home carer) ... ... ... £3,000 £444 €762

Section 468

(blind person) ... ... £3,000 £444 €762 (both spouses blind) ... ... £6,000 £888 €1,524

Section 472

(employee) ... ... ... £1,000 £296 €508

(2)

Section 7

of the Finance Act, 1999 , and sections 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 and 12 of the Finance Act, 2000 , shall apply subject to the provisions of this section.

(3)Schedule 1 shall have effect for the purposes of supplementing subsection (1).

Alteration of rates of income tax.

3.—Section 15 of the Principal Act is amended— (a) as respects the year of assessment 2001 and subsequent years of assessment, by the substitution of the following for subsection (4): “(4) For the purposes of subsection (3), ‘specified income’ means total income after deducting from such income any deduction attributable to a specific source of income and any relevant interest within the meaning of Chapter 4 of Part 8.”, (b) as respects the year of assessment 2001— (i) by the substitution in subsection (3) of “£8,140” for “£6,000”, and (ii) by the substitution of the following Table for the Table to that section: “TABLE

PART 1

Part of taxable income Rate of tax Description of rate

(1)

(2)

(3)The first £14,800 20 per cent the standard rate The remainder 42 per cent the higher rate

PART 2

Part of taxable income Rate of tax Description of rate

(1)

(2)

(3)The first £17,131 20 per cent the standard rate The remainder 42 per cent the higher rate

PART 3

Part of taxable income Rate of tax Description of rate

(1)

(2)

(3)The first £21,460 20 per cent the standard rate The remainder 42 per cent the higher rate and (c) as respects the year of assessment 2002 and subsequent years of assessment— (i) by the substitution in subsection (3) of “€13,967” for “£6,000”, and (ii) by the substitution of the following Table for the Table to that section: “TABLE

PART 1

Part of taxable income Rate of tax Description of rate

(1)

(2)

(3)The first €25,395 20 per cent the standard rate The remainder 42 per cent the higher rate

PART 2

Part of taxable income Rate of tax Description of rate

(1)

(2)

(3)The first €29,395 20 per cent the standard rate The remainder 42 per cent the higher rate

PART 3

Part of taxable income Rate of tax Description of rate

(1)

(2)

(3)The first €36,823 20 per cent the standard rate The remainder 42 per cent the higher rate Age exemption.

4.—Section 188 of the Principal Act is amended— (a) as respects the year of assessment 2001 and subsequent years of assessment— (i) by the substitution of the following for subsections (1) and (2): “(1) In this section and in section 187— ‘income tax payable’ has the same meaning (inserted by the Finance Act, 2001) as in section 3, but without regard to any reduction of tax under section 244; ‘total income’ has the same meaning as in section 3, but includes income arising outside the State which is not chargeable to tax.

(2)In this section, ‘the specified amount’ means, subject to section 187(2)— (a) in a case where the individual would apart from this section be entitled to a tax credit specified in section 461(a) (inserted by the Finance Act, 2001), £12,580, and (b) in any other case, £6,290.”, and (ii) in subsection (3), by the substitution for “relief under section 461(2) as an individual referred to in paragraph (a)(i) of the definition of ‘specified amount’ in subsection (1) of that section” of “a tax credit specified in section 461(a)”, and (b) as respects the year of assessment 2002 and subsequent years of assessment, by the substitution, in subsection (2) (inserted by paragraph (a)), of “€21,586” for “£12,580” and of “€10,793” for “£6,290”.

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

5.—Section 122 of the Principal Act is amended, as respects the year of assessment 2001 and subsequent years of assessment, by the substitution in the definition of “the specified rate” in paragraph (a) of subsection (1) of— (a) “6 per cent” for “4 per cent” in both places where it occurs, and (b) “12 per cent” for “10 per cent”, and the said definition, as so amended, is set out in the Table to this section.

TABLE “the specified rate”, in relation to a preferential loan, means— (i) in a case where— (I) the interest paid on the preferential loan qualifies for relief under section 244, or (II) if no interest is paid on the preferential loan, the interest which would have been paid on that loan (if interest had been payable) would have so qualified, the rate of 6 per cent per annum or such other rate (if any) prescribed by the Minister for Finance by regulations, (ii) in a case where— (I) the preferential loan is made to an employee by an employer, (II) the making of loans for the purposes of purchasing a dwelling house for occupation by the borrower as a residence, for a stated term of years at a rate of interest which does not vary for the duration of the loan, forms part of the trade of the employer, and (III) the rate of interest at which, in the course of the employer's trade at the time the preferential loan is or was made, the employer makes or made loans at arm's length to persons, other than employees, for the purposes of purchasing a dwelling house for occupation by the borrower as a residence is less than 6 per cent per annum or such other rate (if any) prescribed by the Minister for Finance by regulations, the first-mentioned rate in subparagraph (III), or (iii) in any other case, the rate of 12 per cent per annum or such other rate (if any) prescribed by the Minister for Finance by regulations.

Amendment of section 126 (tax treatment of certain benefits payable under Social Welfare Acts) of Principal Act.

6.—Section 126 of the Principal Act is amended by the substitution, in subsection (8), of the following for paragraph (b) (inserted by the Finance Act, 2000 ): “(b) Notwithstanding subsection (3) and the Finance Act, 1992 (Commencement of Section 15) (Unemployment Benefit and Pay-Related Benefit) Order, 1994 ( S.I. No. 19 of 1994 ), subsection (3)(b) shall not apply in relation to unemployment benefit paid or payable, in the period commencing on 6 April 1997 and ending on 31 December 2001, to a person employed in short-time employment.”.

Amendment of section 467 (employed person taking care of incapacitated individual) of Principal Act.

7.—Section 467 of the Principal Act is amended by the substitution of— (a) as respects the year of assessment 2001, “£7,400” for “£8,500” in both places where it occurs, and (b) as respects the year of assessment 2002 and subsequent years of assessment, “€12,700” for “£8,500” in both places where it occurs.

Amendment of section 469 (relief for health expenses) of Principal Act.

8.—As respects the year of assessment 2001 and subsequent years of assessment, subsection (1) of section 469 of the Principal Act is amended— (a) in the definition of “dependent”— (i) by the substitution in paragraph (b) of “under section 465,” for “under section 465 or 466, and”, (ii) by the substitution in subparagraph (ii) of paragraph (c) of “year of assessment, and” for “year of assessment;”, and (iii) by the insertion of the following paragraph after paragraph (c): “(d) any other person being— (i) a relative of the individual, or of the individual's spouse, who is incapacitated by old age or infirmity from maintaining himself or herself, (ii) the widowed father or widowed mother of the individual or of the individual's spouse, whether incapacitated or not, or (iii) a son or daughter of the individual who resides with the individual and on whose services the individual, by reason of old age or infirmity, is compelled to depend;”, (b) by the insertion of the following after the definition of “dependant”: “‘educational psychologist’ means a person who is entered on a register maintained by the Minister for Education and Science for the purposes of this section in accordance with guidelines set down by that Minister with the consent of the Minister for Finance;”, (c) in the definition of “health care”, by the deletion of “other than routine maternity care”, (d) in the definition of “health expenses”, by the insertion of the following after paragraph (h): “(i) as respects a dependant of the individual referred to in paragraphs (b) and (c) of the definition of ‘dependant’ either or both— (I) educational psychological assessment carried out by an educational psychologist, and (II) speech and language therapy carried out by a speech and language therapist;”, (e) by the deletion of the definition of “routine maternity care”, and (f) by the insertion of the following after the definition of “routine ophthalmic treatment”: “‘speech and language therapist’ means a person approved of for the purposes of this section by the Minister for Health and Children in accordance with guidelines set down by that Minister with the consent of the Minister for Finance.”.

Amendment of section 473 (allowance for rent paid by certain tenants) of Principal Act.

9.—Section 473 of the Principal Act is amended— (a) as respects the year of assessment 2001, by the substitution in subsection (1) of the following definition for the definition of “the specified limit”: “‘specified limit’, in relation to an individual for a year of assessment, means— (a) in the case of— (i) a married person assessed to tax in accordance with section 1017, or (ii) a widowed person, £1,480; but, if at any time during the year of assessment the individual was of the age of 55 years or over, ‘specified limit’ means £2,960, and (b) in any other case, £740; but, if at any time during the year of assessment the individual was of the age of 55 years or over, ‘specified limit’ means £1,480;”, and (b) as respects the year of assessment 2002 and subsequent years of assessment, by the substitution in subsection (1) of the following definition for the definition of “the specified limit”: “‘specified limit’, in relation to an individual for a year of assessment, means— (a) in the case of— (i) a married person assessed to tax in accordance with section 1017, or (ii) a widowed person, €2,540; but, if at any time during the year of assessment the individual was of the age of 55 years of over, ‘specified limit’ means €5,080, and (b) in any other case, €1,270; but, if at any time during the year of assessment the individual was of the age of 55 years or over, ‘specified limit’ means €2,540;”.

Amendment of section 477 (relief for service charges) of Principal Act.

10.—Section 477 of the Principal Act is amended— (a) as respects the year of assessment 2001 and subsequent years of assessment, by the substitution in paragraph (a) of subsection (6) of “subject to paragraph (d),” for “subject to paragraph (c),”, (b) as respects the year of assessment 2001, by the substitution in paragraph (a) of subsection (7) of “£150” for “£50”, and (c) as respects the year of assessment 2002 and subsequent years of assessment, by the substitution in paragraph (a) of subsection (7) of “€195” for “£50”.

Relief for trade union subscriptions.

11.—(1) The Principal Act is amended as respects the year of assessment 2001 and subsequent years of assessment— (a) by the insertion in Part 2 of the Table to section 458 of the following after “section 472”: “section 472C”, (b) by the insertion after section 472B of the following section: “Relief for trade union subscriptions.

472C.—(1) In this section— ‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year; ‘specified amount’, in relation to an individual for a year of assessment, means £74; ‘trade union’ means a body which is either— (a) the holder of a negotiation licence under the Trade Union Act, 1941 , (b) an excepted body within the meaning of section 6 of that Act as amended by the Trade Union Act, 1942 , (c) a garda representative body established under the Garda Síochána Act, 1977, namely— (i) the association known as the Association of Garda Sergeants and Inspectors established under regulation 5(1) of the Garda Síochána (Associations) Regulations, 1978 ( S.I. No. 135 of 1978 ), (ii) the association known as the Garda Representative Association established under regulation 4(1) of the Garda Síochána (Associations) Regulations, 1978, (iii) the association known as the Association of Garda Superintendents established under regulation 4(1) of the Garda Síochána (Associations) (Superintendents and Chief Superintendents) Regulations, 1987 ( S.I. No. 200 of 1987 ), or (d) a Defence Forces representative body established under section 2 of the Defence (Amendment) Act, 1990 , and regulations pursuant to that Act.

(2)Where an individual is a member of a trade union at any time in a year of assessment (being the year of assessment 2001 or a subsequent year of assessment), the income tax to be charged on the individual or, in the case of an individual whose spouse is assessed to tax in accordance with the provisions of section 1017, the individual's spouse, for the year of assessment, other than in accordance with section 16(2), shall, subject to the following provisions of this section, be reduced by the lesser of— (a) the appropriate percentage of the specified amount, or (b) the amount which reduces that income tax to nil.
(3)Notwithstanding subsection (2), the relief (if any) to which an individual is entitled under this section for the year of assessment 2001 shall, in addition to the relief (if any) to which the individual is entitled for the year of assessment 2002, be allowed to the individual in accordance with the provisions of subsection (2), in respect of the income tax to be charged on the individual for the year of assessment 2002.
(4)Relief under this section shall be allowed in priority to relief under any of the other provisions mentioned in the Table to section 458.
(5)Where the relief (if any) to which an individual is entitled under this section in respect of income tax to be charged on the individual for the year of assessment 2001 is not wholly allowed to the individual in respect of the income tax to be charged on the individual for the year of assessment 2002 owing to an insufficiency of total income of the individual in that year of assessment, the portion of the relief not so allowed shall be allowed to the individual in respect of the income tax to be charged on the individual for the year of assessment 2001 such relief being limited to the lesser of— (a) the portion of the relief not so allowed, and (b) the relief which reduces that income tax to nil.
(6)If an individual is a member of more than one trade union, either at the same time or at different times in a year of assessment, the individual shall be treated, for the purposes of the relief under this section, as if the individual were a member of one trade union only in that year of assessment.
(7)(a) Notwithstanding the provisions of any other enactment— (i) an employer of individuals entitled to relief under this section, or (ii) a trade union of which such individuals are or were members, shall on receipt of a request from the Revenue Commissioners furnish to them either directly or indirectly the following information, to the extent that such information is in their possession, in relation to any such individual— (I) the name and address of the individual, (II) the name of the trade union of which the individual is a member, (III) the Personal Public Service Number of the individual, and (IV) the name and address of the employer of the individual. (b) A return by an employer or a trade union under paragraph (a) shall, unless the Revenue Commissioners otherwise direct, be in an electronic format approved by the Revenue Commissioners.
(8)(a) The information referred to in subsection (7)(a) shall be used by the Revenue Commissioners for the purposes of facilitating the granting of relief under this section and shall be used for no other purpose. (b) The provisions of section 872 shall not apply or have effect in relation to such information.”, and (c) by the insertion in section 1024(2)(a) of the following after subparagraph (viii): “(viiia) relief under section 472C, to the husband or the wife according as he or she is entitled to the relief under the said section;”.
(2)As respects the year of assessment 2002 and subsequent years of assessment, section 472C (as inserted by subsection (1)) of the Principal Act is amended, in the definition of “specified amount” in subsection (1), by the substitution of “€130” for “£74”.

Amendment of Part 16 (income tax relief for investment in corporate trades — business expansion scheme and seed capital scheme) of Principal Act.

12.—Part 16 of the Principal Act is amended— (a) in section 489, by the substitution in subsection (15), of “commencing on 6 April 1984 and ending on 31 December 2001” for “commencing on the 6th day of April, 1984, and ending on the 5th day of April, 2001”, (b) in section 490, by the substitution, in both subsections (3)(b) and (4)(b), of “the year of assessment 2001” for “the year 2000-01”, and (c) in section 496(2)(a)(ii)— (i) by the substitution in clause (II) of “Shannon Free Airport Development Company Limited,” for “Shannon Free Airport Development Company Limited, or”, (ii) by the substitution in clause (III) of “ Údarás na Gaeltachta Act, 1979 , or” for “ Údarás na Gaeltachta Act, 1979 ,”, and (iii) by the insertion of the following after clause (III): “(IV) as respects a subscription for eligible shares issued on or after 6 April 2001, a County Enterprise Board (being a board referred to in the Schedule to the Industrial Development Act, 1995 ) has, in accordance with the provisions of that Act, made a loan or grant to, or made an equity investment in, the qualifying company concerned,”.

Employee share ownership trusts — deceased beneficiaries.

13.—The Principal Act is amended— (a) in section 519— (i) in subsection (5)(a)— (I) by the substitution in subparagraph (iv) of “the trust deed,” for “the trust deed, and”, and (II) by the insertion after subparagraph (iv) of the following: “(iva) the payment of any sum or the transfer of securities to the personal representatives of a deceased beneficiary under the terms of the trust deed, and”, (ii) by the substitution of the following for subsection (7A): “(7A) Where the trustees of a trust to which this section applies sell securities on the open market, any gain accruing to such trustees shall not be a chargeable gain if, and to the extent that, the proceeds of such sale are used— (a) to repay monies borrowed by those trustees, (b) to pay interest on such borrowings, or (c) to pay a sum to the personal representatives of a deceased beneficiary.”, (iii) by the insertion of the following after subsection (8): “(8A) Where the trustees of a trust to which this section applies transfer securities to the personal representatives of a deceased beneficiary, any gain accruing to the trustees on that transfer shall not be a chargeable gain. (8B) The payment of any sum as is referred to in subsection (7A)(c) or the transfer of any securities to which subsection (8A) applies shall, notwithstanding any other provision of the Income Tax Acts, be exempt from income tax.”, (iv) in subsection (9)— (I) by the substitution for “subsections (1) to (8)” of “subsections (1) to (8B)”, (II) by the substitution in paragraph (c) of “Schedule 11,” for “Schedule 11, or”, and (III) by the insertion after paragraph (c) of the following: “(ca) the payment of any sum or the transfer of securities to the personal representatives of a deceased beneficiary of the trust, or”, and (v) by the insertion of the following after subsection (9): “(10) For the purposes of this section— ‘deceased beneficiary’ means a person who on the date of such person's death— (a) would have been eligible to have shares appropriated to him or her, had such shares been available for appropriation, under a scheme approved of by the Revenue Commissioners under Schedule 11 and for which approval has not been withdrawn, and (b) was a beneficiary under the terms of a trust deed of an employee share ownership trust approved of by the Revenue Commissioners under Schedule 12 and for which approval has not been withdrawn and which trust deed contained provision for the transfer of securities to the trustees of the scheme referred to in paragraph (a) and for the payment of sums and for the transfer of securities to the personal representatives of deceased beneficiaries.”,

and (b) in Schedule 12— (i) by the insertion in subparagraph (2) of paragraph 12, of the following after clause (d): “(da) to pay any sum or to transfer securities to the personal representatives of deceased persons who were beneficiaries under the terms of the trust deed;”, and (ii) by the insertion, in subparagraph (3) of paragraph 13, of the following after clause (d): “(da) the payment of any sum to the personal representatives of a deceased person who was a beneficiary under the terms of the trust deed;”.

Amendment of Schedule 13 (accountable persons for purposes of Chapter 1 of Part 18) to Principal Act.

14.—Schedule 13 to the Principal Act is amended— (a) by the substitution of “13. The Civil Service and Local Appointments Commissioners.” for paragraph 13, (b) by the substitution of “42. Bord na Móna plc.” for paragraph 42, (c) by the deletion of paragraphs 60 and 88, and (d) by the addition of the following after paragraph 103: “104.

The Eastern Regional Health Authority, the Health Boards Executive or an area health board established under the Health (Eastern Regional Health Authority) Act, 1999 .

105.

Irish Sports Council.

106.

An Bord Uchtála.

107.

Council for Children's Hospitals' Care.

108.

National Disability Authority.

109.

Aquaculture Licences Appeals Board.

110.

Office of the President.

111.

Director of Equality Investigations.

112.

Director of Consumer Affairs.

113.

Data Protection Commissioner.

114.

Competition Commissioner.

115.

Chief State Solicitor.

116.

Central Statistics Office.

117.

Commission to Inquire into Child Abuse.

118.

Campus and Stadium Ireland Development Ltd.

119.

Digital Media Development Ltd.

120.

Comhairle.”.

Approved share option schemes.

15.—The Principal Act is amended, with effect from the passing of this Act— (a) in Part 17, by the insertion after Chapter 3 (inserted by the Finance Act, 1999 ) of the following: “CHAPTER 4 Approved Share Option Schemes 519D.—(1) The provisions of this section shall apply where an individual obtains a right to acquire shares in a body corporate— (a) by reason of the individual's office or employment as a director or employee of that or any other body corporate, and (b) that individual obtains the right in accordance with the provisions of a share option scheme approved under Schedule 12C and in respect of which approval has not been withdrawn.

(2)Tax shall not be chargeable under any provision of the Tax Acts in respect of the receipt of the right referred to in subsection (1).
(3)Subject to subsection (4) (except where paragraph 18(2) of Schedule 12C applies), if the individual exercises the right in accordance with the provisions of the scheme at a time when it is approved— (a) tax shall not be chargeable under any provision of the Tax Acts in respect of any gain realised by the exercise of the right, and (b) notwithstanding section 547(1)(a), the individual shall be deemed for the purposes of the Capital Gains Tax Acts to have acquired the shares, acquired by the exercise of the right, for a consideration equal to the amount paid for their acquisition.
(4)Subsection (3) shall not apply in relation to the exercise by any individual of a right in accordance with the provisions of a scheme if the period beginning with his or her obtaining the right and ending with his or her disposal of any of— (a) the shares acquired by the exercise of the right, or (b) in a case where section 584, 586 or 587 applies, the shares received in exchange for the shares so acquired, is less than 3 years.
(5)(a) Where, in exercising a right in accordance with the provisions of the scheme at a time when it is approved, the individual acquires scheme shares from a relevant body, neither a chargeable gain nor an allowable loss shall accrue to the relevant body on the disposal of the scheme shares, and the individual shall, notwithstanding section 547(1)(a), be deemed for the purposes of the Capital Gains Tax Acts to have acquired the scheme shares for a consideration equal to the amount paid for their acquisition. (b) In this subsection and in subsection (6)— ‘relevant body’ means a trust or a company which exists for the purpose of acquiring and holding scheme shares; ‘scheme shares’ has the meaning assigned to it by paragraph 11 of Schedule 12C.
(6)(a) Subject to paragraph (c), this subsection applies to a sum expended by a company in establishing a share option scheme which the Revenue Commissioners approve of in accordance with the provisions of Schedule 12C and under which, subject to subsection (7), no employee or director obtains rights before such approval is given. (b) A sum to which this subsection applies shall be included— (i) in the sums to be deducted in computing for the purposes of Schedule D the profits or gains of a trade carried on by the company, or (ii) if a company is an investment company within the meaning of section 83 or a company in the case of which that section applies by virtue of section 707, in the sums to be deducted under section 83(2) as expenses of management in computing the profits of the company for the purposes of corporation tax. (c) Notwithstanding paragraph (b) or any other provision of the Tax Acts, any sum expended by a company, either directly or indirectly, to enable a relevant body to acquire scheme shares shall not be included— (i) in the sums to be deducted in computing for the purposes of Schedule D the profits or gains of a trade carried on by the company, or (ii) if the company is an investment company within the meaning of section 83 or a company in the case of which that section applies by virtue of section 707, in the sums to be deducted under section 83(2) as expenses of management in computing the profits of the company for the purposes of corporation tax. (d) In a case where— (i) paragraph (b) applies, and (ii) the approval is given after the end of the period of 9 months beginning on the day following the end of the accounting period in which the sum is expended, then, for the purposes of paragraph (b), the sum shall be treated as expended in the accounting period in which approval is given and not the accounting period mentioned in subparagraph (ii).
(7)(a) Where a share option scheme is approved by the Revenue Commissioners under Schedule 12C and, prior to such approval, an individual had obtained under the scheme a right which meets the conditions of paragraph (b), that right shall be treated for all the purposes of this section and Schedule 12C as if it had been obtained under an approved scheme. (b) The conditions of this paragraph are— (i) the right was exercised on or after 15 February 2001, (ii) the scheme is approved by the Revenue Commissioners under Schedule 12C on or before 31 December 2001, and (iii) at the time— (I) the right was obtained, and (II) the right was exercised, if such exercise occurred before the scheme was approved under Schedule 12C, the scheme would, at each of those times, have been capable of approval under Schedule 12C if that Schedule had been in force from the time the right was obtained.”, (b) by the insertion after Schedule 12B (inserted by the Finance Act, 1999 ) of the following: “SCHEDULE 12C Approved Share Option Schemes Interpretation 1. (1) For the purposes of this Schedule— ‘approved’ in relation to a scheme, means approved under paragraph 2; ‘associated company’ has the same meaning as in section 432; ‘auditor’, in relation to a company, means the person or persons appointed as auditor of the company for the purposes of the Companies Acts, 1963 to 1999, or under the law of the territory in which the company is incorporated and which corresponds to those Acts; ‘control’ has the same meaning as in section 432; ‘full-time director’, in relation to a company, means a director who is required to devote substantially the whole of his or her time to the service of the company; ‘grantor’ has the meaning given by paragraph 2(1); ‘group scheme’ has the meaning given by paragraph 2(3); ‘key employee or director’, in relation to a company, means an employee or a full-time director of the company whose specialist skills, qualifications and relevant experience are vital to the future success of the company and is so certified to the Revenue Commissioners by the company; ‘market value’ shall be construed in accordance with section 548; ‘participating company’, in relation to a group scheme, has the meaning given by paragraph 2(4); ‘scheme shares’ has the meaning given by paragraph 11; ‘shares’ includes stock.
(2)Section 10 shall apply for the purposes of this Schedule.
(3)Subsection (3) of section 433 shall have effect in a case where the scheme is a group scheme, with the substitution of a reference to all the participating companies for the first reference to the company in subparagraph (ii) of paragraph (c) of that subsection.
(4)For the purposes of this Schedule— (a) a company is a member of a consortium that owns another company if it is one of not more than 5 companies which between them beneficially own not less than 75 per cent of the other company's ordinary share capital and each of which beneficially owns not less than 5 per cent of that capital, and (b) the question of whether one company is controlled by another shall be determined in accordance with section 432.

Approval of schemes 2. (1) On the application of a body corporate (in this Schedule referred to as the ‘grantor’) which has established a share option scheme, the Revenue Commissioners shall approve the scheme if they are satisfied that it fulfils the requirements of this Schedule.

(2)An application under subparagraph (1) shall be made in writing and contain such particulars and be supported by such evidence as the Revenue Commissioners may require.
(3)Where the grantor has control of another company or companies, the scheme may be expressed to extend to all or any of the companies of which it has control and in this Schedule a scheme which is expressed so to extend is referred to as a ‘group scheme’.
(4)In relation to a group scheme, ‘participating company’ means the grantor or any other company to which for the time being the scheme is expressed to extend.
3.(1) The Revenue Commissioners shall not approve a scheme under this Schedule if it appears to them that it contains features which are neither essential nor reasonably incidental to the purpose of providing for employees' and full-time directors' benefits in the nature of rights to acquire shares.
(2)The Revenue Commissioners shall be satisfied— (a) that there are no features of the scheme other than any which are included to satisfy requirements of this Schedule which have or would have the effect of discouraging any description of employees who fulfil the conditions in paragraph 8(1) from actually participating in the scheme, and (b) where the grantor is a member of a group of companies, that the scheme does not and would not have the effect of conferring benefits wholly or mainly on directors of companies in the group or on those employees of companies in the group who are in receipt of the higher or highest levels of remuneration.
(3)For the purposes of subparagraph (2), ‘a group of companies’ means a company and any other companies of which it has control or with which it is associated.
(4)For the purposes of subparagraph (3), a company shall be associated with another company where it could reasonably be considered that— (a) both companies act in pursuit of a common purpose, (b) any person or any group of persons or groups of persons having a reasonable commonality of identity have or had the means or power, either directly or indirectly, to determine the trading operations carried on or to be carried on by both companies, or (c) both companies are under the control of any person or group of persons or groups of persons having a reasonable commonality of identity.
4.(1) If, at any time after the Revenue Commissioners have approved a scheme, any of the requirements of this Schedule cease to be satisfied or the grantor fails to provide information requested by the Revenue Commissioners under paragraph 20, the Revenue Commissioners may withdraw the approval with effect from that time or such later time as the Revenue Commissioners may specify.
(2)If an alteration is made in the scheme at any time after the Revenue Commissioners have approved the scheme, the approval shall not have effect after the date of the alteration unless the Revenue Commissioners have approved the alteration.
5.If the grantor is aggrieved by— (a) the failure of the Revenue Commissioners to approve the scheme or to approve an alteration in the scheme, (b) the withdrawal of approval, or (c) the failure of the Revenue Commissioners to decide that a condition subject to which the approval has been given is satisfied, it may, by notice in writing given to the Revenue Commissioners within 30 days from the date on which it is notified of the Revenue Commissioners' decision, require the matter to be determined by the Appeal Commissioners, and the Appeal Commissioners shall hear and determine the matter in like manner as an appeal made to them against an assessment and all the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.
6.The Revenue Commissioners may nominate any of their officers, including an inspector, to perform any acts and discharge any functions authorised by this Schedule to be performed or discharged by them.

Eligibility 7. (1) The scheme shall not provide for any person to be eligible to participate in it, that is to say, to obtain and exercise rights under it— (a) unless he or she is an employee or director of the grantor or, in the case of a group scheme, of a participating company, or (b) at any time when he or she has, or has within the preceding 12 months had, a material interest in a close company within the meaning of Chapter 1 of Part 13, which is— (i) a company the shares of which may be acquired pursuant to the exercise of rights obtained under the scheme, or (ii) a company which has control of such a company or is a member of a consortium which owns such a company.

(2)Notwithstanding subparagraph 1(a), the scheme may provide that a person may exercise rights obtained under it despite having ceased to be an employee or a director.
8.(1) The scheme shall provide that, at any time, every person who— (a) is an employee or a full-time director of the grantor or, in the case of a group scheme, a participating company, (b) has been such an employee or director at all times during a qualifying period not exceeding three years, and (c) is chargeable to tax in respect of that person's office or employment under Schedule E, shall be eligible to participate in the scheme, that is to say, to obtain and exercise rights under it.
(2)Subject to paragraph 9 every person eligible to participate in the scheme shall do so on similar terms.
(3)For the purposes of subparagraph (2), the fact that— (a) the rights to be obtained by persons participating in a scheme vary or are different— (i) in the year of assessment in which they commence to hold the office or employment by virtue of which they are entitled to participate in the scheme, or (ii) according to the levels of their remuneration, the length of their service or similar factors, or (b) a person is not entitled to receive rights within a stated period of his or her normal retirement date, shall not be regarded as meaning that they are not eligible to participate in the scheme on similar terms.
9.(1) Subject to the conditions of this paragraph, the scheme may provide for an employee or a director, who is a key employee or director of the grantor or, in the case of a group scheme, a participating company, to obtain and exercise rights under it which do not satisfy the requirement of paragraph 8 regarding participation in the scheme on similar terms.
(2)The conditions of this paragraph are that, in any year of assessment— (a) the total number of shares in respect of which rights have been granted to key employees and directors in accordance with a rule of the scheme which conforms with this paragraph does not exceed 30 per cent of the total number of shares in respect of which rights have been granted to all employees and directors participating in the scheme whether in accordance with this paragraph or paragraph 8, and (b) an individual who obtains rights for a year of assessment by virtue of this paragraph shall not also be entitled to obtain rights for that year in accordance with paragraph 8.
10.In determining for the purposes of paragraph 7— (a) whether a company is a close company, section 430(1)(a) and subsections (3) to (7) of section 431 shall be disregarded, and (b) whether a person has or has had a material interest in a company, sections 437(2) and 433(3)(c)(ii) shall have effect with the substitution for the references in those provisions to 5 per cent of references to 15 per cent.

Scheme shares 11. The scheme shall provide for directors and employees to obtain rights to acquire shares (in this Schedule referred to as ‘scheme shares’) which satisfy the requirements of paragraphs 12 to 16.

12.Scheme shares shall form part of the ordinary share capital of— (a) the grantor, (b) a company which has control of the grantor, or (c) a company which either is, or has control of, a company which— (i) is a member of a consortium which owns either the grantor or a company having control of the grantor, and (ii) beneficially owns not less than 15 per cent of the ordinary share capital of the company so owned.
13.Scheme shares shall be— (a) shares of a class quoted on a recognised stock exchange. (b) shares in a company which is not under the control of another company, or (c) shares in a company which is under the control of a company (other than a company which is, or if resident in the State would be, a close company within the meaning of section 430) whose shares are quoted on a recognised stock exchange.
14.(1) Scheme shares— (a) shall be fully paid up, (b) shall not be redeemable, and (c) shall not be subject to any restrictions other than restrictions which attach to all shares of the same class or a restriction authorised by subparagraph (2).
(2)Subject to subparagraph (3), the shares may be subject to a restriction imposed by the company's articles of association— (a) requiring all shares held by directors or employees of the company or of any other company of which it has control to be disposed of on ceasing to be so held, and (b) requiring all shares acquired, in pursuance of rights or interests obtained by such directors or employees, by persons who are not, or have ceased to be, such directors or employees to be disposed of when they are acquired.
(3)A restriction is not authorised by subparagraph (2) unless— (a) any disposal required by the restriction will be by way of sale for a consideration in money on terms specified in the articles of association, and (b) the articles also contain general provisions by virtue of which any person disposing of shares of the same class (whether or not held or acquired as mentioned in subparagraph (2)) may be required to sell them on terms which are the same as those mentioned in clause (a).
15.(1) In determining for the purposes of paragraph 14(1)(c) whether scheme shares which are or are to be acquired by any person are subject to any restrictions, there shall be regarded as a restriction attaching to the shares any contract, agreement, arrangement or condition by which such person's freedom to dispose of the shares or of any interest in them or of the proceeds of their sale or to exercise any right conferred by them is restricted or by which such a disposal or exercise may result in any disadvantage to that person or to a person connected with that person.
(2)Subparagraph (1) does not apply to so much of any contract, agreement, arrangement or condition as contains provisions similar in purpose and effect to any of the provisions of the Model Rules set out in the Listing Rules of the Irish Stock Exchange.
16.Except where scheme shares are in a company whose ordinary share capital consists of shares of one class only, the majority of the issued shares of the same class shall be held by persons other than— (a) persons who acquired their shares in pursuance of a right conferred on them or an opportunity afforded to them as a director or employee of the grantor or any other company and not in pursuance of an offer to the public, (b) trustees holding shares on behalf of persons who acquired their beneficial interests in the shares as mentioned in subparagraph (a), and (c) in a case where the shares fall within subparagraph (c) of paragraph 13 but do not fall within subparagraph (a) of that paragraph, companies which have control of the company whose shares are in question or of which that company is an associated company.

Exchange provisions 17. (1) The scheme may provide that if any company (in this paragraph referred to as ‘the acquiring company’)— (a) obtains control of a company whose shares are scheme shares as a result of making a general offer— (i) to acquire the whole of the issued ordinary share capital of the company which is made on a condition such that if it is satisfied the person making the offer will have control of the company, or (ii) to acquire all the shares in the company which are of the same class as the scheme shares, (b) obtains control of a company whose shares are scheme shares in pursuance of a compromise or arrangement sanctioned by the court under section 201 of the Companies Act, 1963 , or (c) becomes bound or entitled to acquire shares, under section 204 of the Companies Act, 1963 , in a company whose shares are scheme shares. any participant in the scheme may at any time within the appropriate period, by agreement with the acquiring company, release his or her rights under the scheme (in this paragraph referred to as ‘the old rights’) in consideration of the grant to him or her of rights (in this paragraph referred to as ‘the new rights’) which are equivalent to the old rights but relate to shares in a different company (whether the acquiring company itself or some other company falling within subparagraph (b) or (c) of paragraph 12).

(2)In subparagraph (1) ‘the appropriate period’ means— (a) in a case falling within clause (a) of that subparagraph, the period of 6 months beginning with the time when the person making the offer has obtained control of the company and any condition subject to which the offer is made is satisfied, (b) in a case falling within clause (b) of that subparagraph, the period of 6 months beginning with the time when the court sanctions the compromise or arrangement, and (c) in a case falling within clause (c) of that subparagraph, the period during which the acquiring company remains bound or entitled as mentioned in that clause.
(3)The new rights shall not be regarded for the purposes of this paragraph as equivalent to the old rights unless— (a) the shares to which they relate satisfy the conditions specified, in relation to scheme shares, in paragraphs 12 to 16, (b) the new rights will be exercisable in the same manner as the old rights and subject to the provisions of the scheme as it had effect immediately before the release of the old rights, (c) the total market value, immediately before the release, of the shares which were subject to the participant's old rights is equal to the total market value, immediately after the grant, of the shares in respect of which the new rights are granted to the participant, and (d) the total amount payable by the participant for the acquisition of shares in pursuance of the new rights is equal to the total amount that would have been payable for the acquisition of shares in pursuance of the old rights.
(4)Where any new rights are granted pursuant to a provision included in a scheme by virtue of this paragraph they shall be regarded— (a) for the purposes of section 519D and this Schedule, and (b) for the purposes of the subsequent application (by virtue of a condition complying with subparagraph (3)(b)) of the provisions of the scheme, as having been granted at the time when the corresponding old rights were granted.

Transfer of rights 18. (1) The scheme shall not permit any person obtaining rights under it to transfer any of them but may provide that if such a person dies before exercising them, they may be exercised after, but not later than one year after, the date of that person's death.

(2)Where the scheme contains the provisions permitted by subparagraph (1) and any rights are exercised after the death of the person who obtained them, subsection (3) of section 519D shall apply with the omission of the reference to subsection (4) of that section.

Share price 19. The price at which scheme shares may be acquired by the exercise of a right obtained under the scheme shall be stated at the time the right is obtained and shall not be less than the market value of shares of the same class at that time or, if the Revenue Commissioners and the grantor agree in writing, at such earlier time or times as may be provided in the agreement, but the scheme may provide for such variation of the price so stated as may be necessary to take account of any variation in the share capital of which the scheme shares form part.

Information 20. (1) The Revenue Commissioners may by notice in writing require any person to furnish them, within such time as the Revenue Commissioners may direct (not being less than 30 days), with such information as the Revenue Commissioners think necessary for the performance of their functions under this Schedule, and which the person to whom the notice is addressed has or can reasonably obtain, including in particular information— (a) to enable the Revenue Commissioners to determine— (i) whether to approve a scheme or withdraw an approval already given, or (ii) the liability to tax, including capital gains tax, of any person who has participated in a scheme, and (b) in relation to the administration of a scheme and any alteration of the terms of a scheme.

(2)Notwithstanding the generality of subparagraph (1), the Revenue Commissioners may request a certificate from the auditor of a grantor company certifying that, in his or her opinion— (a) the terms of any rule or rules included in the scheme by virtue of either or both paragraphs 8 and 9 are complied with in relation to a year of assessment, or (b) as respects rights obtained under the scheme before it was approved under this Schedule, the conditions in subsection (7)(b) of section 519D are satisfied.
21.(1) For the purposes of section 437(2), as applied by paragraph 10(b) of this Schedule, a right to acquire shares (however arising) shall be taken to be a right to control them.
(2)Any reference in subparagraph (3) to the shares attributed to an individual is a reference to the shares which, in accordance with section 437(2) as applied by paragraph 10(b) of this Schedule, fall to be brought into account in that individual's case to determine whether their number exceeds a particular percentage of the company's ordinary share capital.
(3)In any case where— (a) the shares attributed to an individual consist of or include shares which that individual or any other person has a right to acquire, and (b) the circumstances are such that, if that right were to be exercised, the shares acquired would be shares which were previously unissued and which the company is contractually bound to issue in the event of the exercise of the right, then, in determining at any time prior to the exercise of that right whether the number of shares attributed to the individual exceeds a particular percentage of the ordinary share capital of the company, that ordinary share capital shall be taken to be increased by the number of unissued shares referred to in clause (b).”, and (c) in Schedule 29, by the insertion after “Schedule 9, paragraph 8” in Column 2 of: “Schedule 12, paragraph 3(4) Schedule 12A, paragraph 6 Schedule 12B, paragraph 5 Schedule 12C, paragraph 20”.

Amendment of provisions relating to employee share schemes.

16.—The Principal Act is amended— (a) in Schedule 11, as respects profit sharing schemes approved on or after the passing of this Act, by the substitution in subparagraph (1A) (inserted by the Finance Act, 1998 ) of paragraph 4 of the following for clause (b): “(b) For the purposes of this subparagraph— (i) ‘a group of companies’ means a company and any other companies of which it has control or with which it is associated, and (ii) a company shall be associated with another company where it could reasonably be considered that— (I) both companies act in pursuit of a common purpose, (II) any person or any group of persons or groups of persons having a reasonable commonality of identity have or had the means or power, either directly or indirectly, to determine the trading operations carried on or to be carried on by both companies, or (III) both companies are under the control of any person or group of persons or groups of persons having a reasonable commonality of identity.”, (b) in Schedule 12, as respects employee share ownership trusts approved on or after the passing of this Act, by the substitution in paragraph 2(2) (inserted by the Finance Act, 1998 ) of the following for clause (b): “(b) For the purposes of this subparagraph— (i) ‘a group of companies’ means a company and any other companies of which it has control or with which it is associated, and (ii) a company shall be associated with another company where it could reasonably be considered that— (I) both companies act in pursuit of a common purpose, (II) any person or any group of persons or groups of persons having a reasonable commonality of identity have or had the means or power, either directly or indirectly, to determine the trading operations carried on or to be carried on by both companies, or (III) both companies are under the control of any person or group of persons or groups of persons having a reasonable commonality of identity.”, and (c) in Schedule 12A (inserted by the Finance Act, 1999 ), as respects savings-related share option schemes approved on or after the passing of this Act, by the substitution in paragraph 3 of the following for subparagraph (3): “(3) For the purposes of subparagraph (2)— (a) ‘a group of companies’ means a company and any other companies of which it has control or with which it is associated, and (b) a company shall be associated with another company where it could reasonably be considered that— (i) both companies act in pursuit of a common purpose, (ii) any person or any group of persons or groups of persons having a reasonable commonality of identity have or had the means or power, either directly or indirectly, to determine the trading operations carried on or to be carried on by both companies, or

(iii) both companies are under the control of any person or group of persons or groups of persons having a reasonable commonality of identity.”, Provisions relating to certain approved profit sharing schemes and employee share ownership trusts.

17.—(1) The Principal Act is amended— (a) in section 511A— (i) by the insertion in subsection (2)(c) of “or paragraph 11A, as the case may be,” after “paragraph 11”, and (ii) by the insertion in subsection (5) of “or paragraph 11A, as the case may be,” after “paragraph 11”, (b) in Schedule 11— (i) in paragraph 4— (I) by the insertion in subparagraph (1A)(a)(i) of “, having regard to subparagraph (1B),” after “subparagraph (1)”, and (II) by the insertion of the following subparagraph after subparagraph (1A): “(1B) As respects a scheme which has been established by a relevant company (within the meaning of paragraph 1 of Schedule 12)— (a) any reference in subparagraph (1)(a)(ii) to an employee or a full-time director shall be deemed to be a reference to an individual who was such an employee or a full-time director, as the case may be, of that relevant company or of a company within the relevant company's group (within the meaning of paragraph 1(3A) of Schedule 12) on the day the scheme was established, and (b) for the purposes of satisfying the qualifying period requirement referred to in subparagraph (1)(b), such periods in which an individual was or is an employee or a director of a company referred to in subparagraphs (3)(b) and (13) of paragraph 11A of Schedule 12 shall also be taken into account.”, (ii) in paragraph 12A by the insertion in subparagraph (b) of “or paragraph 11A, as the case may be,” after “paragraph 11”, and (iii) by the insertion of the following paragraph after paragraph 13A: “13B. (1) Nothing in paragraph 13 shall prevent shares being appropriated to an individual under an approved scheme established by a relevant company (within the meaning of paragraph 1 of Schedule 12) and where, in a year of assessment, shares have been appropriated to an individual under such an approved scheme, paragraph 13 shall apply as if those shares had not been appropriated to that individual in that year of assessment.

(2)Section 515 and paragraph 3(4) shall, subject to any necessary modification, apply in respect of all shares appropriated to that individual in that year of assessment.”, and (c) in Schedule 12— (i) in paragraph 1— (I) by the insertion in subparagraph (1) after the definition of “ordinary share capital” of the following: “‘relevant company’ means— (a) a company into which a trustee savings bank has been reorganised under section 57 of the Trustee Savings Banks Act, 1989 , or (b) ICC Bank plc;”, and (II) by the insertion of the following subparagraph after subparagraph (3): “(3A) For the purposes of this Schedule a company falls within the relevant company's group at a particular time if— (a) it is the relevant company, or (b) at that time, it is controlled by the relevant company and the trust concerned referred to in paragraph 2(1) is expressed to extend to it.”, (ii) by the insertion of the following paragraph after paragraph 7: “7A. Notwithstanding any other provision in this Schedule, in a case to which paragraph 11A applies, any reference in paragraph 8, 9 or 10 to an employee or a director of a company shall be construed as a reference to an individual who— (a) was an employee or a director, as the case may be, of the relevant company or of a company within the relevant company's group on the day the trust was established, and (b) is, at the relevant time (within the meaning, as may be appropriate in the circumstances, of paragraph 8, 9 or 10), an employee or a director, as the case may be, of a company referred to in paragraph 11A(3)(b).”, and (iii) by the insertion of the following paragraph after paragraph 11: “11A. (1) Notwithstanding any other provision of this Schedule, in any case where a trust is established by a company which is a relevant company, this Schedule shall, with any necessary modification, apply as respects the beneficiaries under the trust as if this paragraph were substituted for paragraph 11.
(2)The trust deed shall contain provision as to the beneficiaries under the trust in accordance with this paragraph.
(3)The trust deed shall provide that a person is a beneficiary at a particular time (in this subparagraph referred to as the ‘relevant time’) if— (a) the person was an employee or a director of the relevant company or of a company within the relevant company's group on the day the trust was established by that relevant company, (b) the person is at the relevant time an employee or a director of— (i) a company (in this subparagraph referred to as the ‘first-mentioned company’) which is, or was at any time since the day the trust was established, within the founding company's group, (ii) a company within a group of companies (within the meaning of paragraph 2(2)(b)) which has acquired control of the first-mentioned company, (iii) a company to which— (I) an employee, or (II) a director, referred to in clause (a) has been transferred under either or both the European Communities (Safe-guarding of Employees' Rights on Transfer of Undertaking) Regulations, 1980 and 2000 and the Central Bank Act, 1971 , or (iv) a company within a group of companies (within the meaning of paragraph 2(2)(b)), of which the company referred to in subclause (iii) is, or was at any time, a member, (c) at each given time in a qualifying period the person was such an employee or a director of a company referred to in clause (b), (d) in the case of a director, at that given time the person worked as a director of a company referred to in clause (b) or of a company within the relevant company's group at the rate of at least 20 hours a week (disregarding such matters as holidays and sickness), and (e) the person is chargeable to income tax in respect of his or her office or employment under Schedule E.
(4)The trust deed may provide that a person is a beneficiary at a particular time if, but for subparagraph (3)(e), he or she would be a beneficiary within the rule which is included in the deed and conforms with subparagraph (3).
(5)Subject to subparagraph (6), the trust deed may provide that a person is a beneficiary at a particular time (in this subparagraph referred to as the ‘relevant time’) if— (a) the person was an employee or a director of the relevant company or of a company within the relevant company's group on the day the trust was established by that relevant company, (b) the person has at each given time in a qualifying period been an employee or a director of a company referred to in subparagraph (3)(b) at that given time, (c) the person has ceased to be an employee or a director of a company referred to in subparagraph (3)(b), (d) at each given time in the 5 year period, or such lesser period as the Minister for Finance may by order prescribe, commencing on the date the trust was established, 50 per cent or such lesser percentage as the Minister for Finance may by order prescribe, of the securities retained by the trustees at that time were pledged by them as security for borrowings, and (e) at the relevant time a period of not more than 15 years has elapsed since the trust was established.
(6)The trust deed may provide that a person is a beneficiary at a particular time (in this subparagraph referred to as the ‘relevant time’) if— (a) the person was an employee or a director of the relevant company or of a company within the relevant company's group on the day the trust was established by that relevant company, (b) the person has at each given time in a qualifying period been an employee or a director of a company referred to in subparagraph (3)(b) at that given time, (c) the person has ceased to be an employee or a director of a company referred to in subparagraph (3)(b), and (d) at the relevant time a period of not more than 18 months has elapsed since the person so ceased.
(7)The trust deed shall not contain a rule that conforms with subparagraph (5) unless the rule is expressed as applying to every person within it.
(8)The trust deed may provide for a person to be a beneficiary if the person is a charity and the circumstances are such that— (a) there is no person who is a beneficiary within the rule which is included in the deed and conforms with subparagraph (3) or with any rule which is so included and conforms with subparagraph (4), (5) or (6); and (b) the trust is in consequence of being wound up.
(9)For the purposes of subparagraph (3), a qualifying period shall be a period— (a) whose length is not more than 3 years, (b) whose length is specified in the trust deed, and (c) which ends with the relevant time (within the meaning of that subparagraph).
(10)For the purposes of subparagraphs (5) and (6), a qualifying period shall be a period— (a) whose length is equal to that of the period specified in the trust deed for the purposes of a rule which conforms with subparagraph (3), and (b) which ends when the person ceased as mentioned in subparagraph (5)(c) or (6)(c), as the case may be.
(11)The trust deed shall not provide for a person to be a beneficiary unless the person is within the rule which is included in the deed and conforms with subparagraph (3) or any rule which is so included and conforms with subparagraph (4), (5), (6) or (8).
(12)The trust deed shall provide that, notwithstanding any other rule which is included in it, a person cannot be a beneficiary at a particular time (in this subparagraph referred to as the ‘relevant time’) by virtue of a rule which conforms with subparagraph (3), (4), (5), (6) or (8) if— (a) at the relevant time the person has a material interest in a company referred to in subparagraph (3)(b), or (b) at any time in the period of one year preceding the relevant time the person has had a material interest in that company, and for the purposes of this subparagraph any reference to a company shall, in a case to which clause (a) of the definition of relevant company applies, also include a reference to a trustee savings bank which has been reorganised into the relevant company concerned.
(13)For the purposes of satisfying the qualifying period requirement referred to in subparagraphs (3)(c), (5)(b) and (6)(b) a person shall also be regarded as such an employee or a director for any period in which that person is an employee or a director of, in a case to which clause (a) of the definition of relevant company applies, a trustee savings bank which has been reorganised into that relevant company.
(14)For the purposes of this paragraph ‘charity’ means any body of persons or trust established for charitable purposes only.
(15)Where an order is proposed to be made under subparagraph (5)(d), a draft of the order shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann.”.
(2)Subsection (1) shall apply and have effect as respects— (a) a profit sharing scheme, or (b) an employee share ownership trust, approved on or after 12 December 2000.

Amendment of Part 30 (occupational pension schemes, retirement annuities, purchased life annuities and certain pensions) of Principal Act.

18.—Part 30 of the Principal Act is amended— (a) in Chapter 1— (i) in section 770(1): (I) by the insertion of the following after the definition of “pension”: “‘pension adjustment order’ means an order made in accordance with either section 12 of the Family Law Act, 1995 , or section 17 of the Family Law (Divorce) Act, 1996 ;”, (II) by the substitution of the following for the definition of proprietary director: “‘proprietary director’ means a director who, either alone or together with his or her spouse and minor children is or was, at any time within 3 years of the date of— (i) the specified normal retirement date, (ii) an earlier retirement date, where applicable, (iii) leaving service, or (iv) in the case of a pension or part of a pension payable in accordance with a pension adjustment order, the relevant date in relation to that order, the beneficial owner of shares which, when added to any shares held by the trustees of any settlement to which the director or his or her spouse had transferred assets, carry more than 5 per cent of the voting rights in the company providing the benefits or in a company which controls that company;”, and (III) by the insertion of the following after the definition of “relevant benefits”: “‘relevant date’ means, in relation to a pension adjustment order, the date on which the decree of separation or the decree of divorce, as the case may be, was granted, by reference to which the pension adjustment order in question was made;”, and (ii) in subsection (3A) (inserted by the Finance Act, 1999 ) of section 772, by the substitution of the following for subparagraph (i): “(i) a proprietary director of, or where a pension or part of a pension is payable in accordance with a pension adjustment order, the spouse or former spouse to whom the pension or part of the pension is so payable, of a proprietary director of, a company to which the scheme relates, or”, and (b) in Chapter 2— (i) in section 784, by the insertion of the following after subsection (6): “(7) Notwithstanding anything in section 18 or section 19, any payment of an annuity made on or after 1 January 2002 in respect of an annuity contract approved under this section or under section 785 shall be regarded as a pension chargeable to tax under Schedule E, and Chapter 4 of Part 42 shall apply accordingly.”, (ii) in paragraph (c) of subsection (6) of section 784E (inserted by the Finance Act, 1999 ), by the substitution, as on and from 25 March 1999, for “subsections (2) and (4)” of “subsections (2) to (4)”,

and (iii) in section 787— (I) by the deletion of subsection (9), (II) by the substitution of the following for subsection (10): “(10) Where in any year of assessment a reduction or a greater reduction would be made under this section in the relevant earnings of an individual but for an insufficiency of net relevant earnings, the amount of the reduction which would have been made but for that reason, less the amount of the reduction which is made in that year, shall be carried forward to the next year of assessment, and shall be treated for the purposes of relief under this section as the amount of a qualifying premium paid in the next year of assessment.”, and (III) by the deletion of subsection (12).

Amendment of section 470 (relief for insurance against expenses of illness) of Principal Act.

19.—(1) As respects the year of assessment 2001 and subsequent years of assessment, section 470 of the Principal Act is amended— (a) in subsection (1)— (i) by the substitution of the following for the definition of “relevant contract”: “‘relevant contract’, in relation to an individual, means a contract of insurance which provides specifically, whether in conjunction with other benefits or not, for the reimbursement or discharge, in whole or in part, of actual health expenses (within the meaning of section 469) of— (a) the individual, (b) the spouse of the individual, or (c) the children or other dependants of the individual or of the spouse of the individual;”, and (ii) by the insertion after the definition of “relevant contract” of the following: “‘relievable amount’, in relation to a payment to an authorised insurer under a relevant contract, means— (a) where the payment covers no benefits other than such reimbursement or discharge as is referred to in the definition of ‘relevant contract’, an amount equal to the full amount of the payment, or (b) where the payment covers benefits other than such reimbursement or discharge as is referred to in that definition, an amount equal to so much of the payment as is referable to such reimbursement or discharge.”, (b) by the substitution of the following for subsections (2) and (3): “(2) Subject to subsection (3), where for a year of assessment— (a) an individual, or (b) if the individual is a married person assessed to tax in accordance with section 1017, the individual's spouse, has made a payment to an authorised insurer under a relevant contract, then, the income tax to be charged on the individual for the year of assessment, other than in accordance with section 16(2), shall be reduced by an amount which is the lesser of— (i) an amount equal to the appropriate percentage of the relievable amount in relation to the payment, and (ii) the amount which reduces that income tax to nil.

(3)(a) Where, on or after 6 April 2001, an individual makes a payment to an authorised insurer in respect of a premium due on or after that date under a relevant contract for which relief is due under subsection (2), the individual shall be entitled to deduct and retain out of it an amount equal to the appropriate percentage, for the year of assessment in which the payment is due, of the relievable amount in relation to the payment. (b) An authorised insurer to which a payment referred to in paragraph (a) is made— (i) shall accept the amount paid after deduction in discharge of the individual's liability to the same extent as if the deduction had not been made, and (ii) may, on making a claim in accordance with regulations, recover from the Revenue Commissioners an amount equal to the amount deducted.”, and (c) by the insertion of the following after subsection (4): “(5) (a) The Revenue Commissioners shall make regulations providing generally as to administration of this section and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision— (i) that a claim under subsection (3)(b)(ii) by an authorised insurer, which has registered with the Revenue Commissioners for the purposes of making such a claim, shall— (I) be made in such form and manner, (II) be made at such time, and (III) be accompanied by such documents, as provided for in the regulations; (ii) for the making of annual information returns by authorised insurers, in such form (including electronic form) and manner as may be prescribed, and containing specified details in relation to— (I) each individual making payments to such insurers under relevant contracts in a year of assessment, (II) the total amount of premiums paid under a relevant contract by that individual in the year of assessment, and (III) the total amount deducted by that individual under subsection (3)(a); and (iii) for the furnishing of information to the Revenue Commissioners for the purposes of the regulations. (b) 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.
(6)(a) Where any amount is paid to an authorised insurer by the Revenue Commissioners as an amount recoverable by virtue of subsection (3)(b)(ii) but is an amount to which that authorised insurer is not entitled, that amount shall be repaid by the authorised insurer. (b) There shall be made such assessments, adjustments or set-offs as may be required for securing repayment of the amount referred to in paragraph (a) and the provisions of this Act relating to the assessment, collection and recovery of income tax shall, in so far as they are applicable and with necessary modification, apply in relation to the recovery of such amount.”.
(2)Notwithstanding any other provision to the contrary, in relation to the year of assessment 2001 an individual shall be entitled to relief under section 470 of the Principal Act in respect of premiums paid to an authorised insurer under a relevant contract both in that year and in the year preceding that year of assessment.
(3)Schedule 29 to the Principal Act is amended in column 1 by the insertion after “section 121” of “section 470 and Regulations under that section”.

Relief for premiums under qualifying long-term care policies, etc.

20.—The Principal Act is amended— (a) in Chapter 1 of Part 15— (i) by the insertion in Part 2 of the Table to section 458 of “Section 470A” after “Section 470”, and (ii) by the insertion of the following after section 470: “Relief for premiums under qualifying long-term care policies.

470A.—(1) In this section— ‘activities of daily living’ means one or more of the following, that is to say, washing, dressing, feeding, toileting, mobility and transferring; ‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year; ‘long-term care services’ means necessary diagnostic, preventive, therapeutic, curing, treating, mitigating and rehabilitative services and maintenance or personal care services carried out by or on the advice of a practitioner; ‘maintenance or personal care services’ means any care the primary purpose of which is the provision of needed assistance with any of the disabilities as a result of which an individual is a relevant individual (including protection from threats to health and safety due to severe cognitive impairment); ‘mobility’ means the ability to move indoors from room to room on level surfaces; ‘policy’ means a policy of insurance; ‘PPS Number’, in relation to an individual, means that individual's Personal Public Service Number within the meaning of section 223 of the Social Welfare (Consolidation) Act, 1993 ; ‘practitioner’ means any person who is registered in the register established under section 26 of the Medical Practitioners Act, 1978 , or, in relation to long-term care services provided outside the State, is entitled under the laws of the territory in which such services are provided to practice medicine there; ‘qualifying individual’ in relation to an individual and a qualifying long-term care policy, means— (a) the individual, (b) the spouse or a child of the individual, or (c) a relative of the individual or of the spouse of the individual; ‘qualifying insurer’ means, subject to subsection (2), the holder of— (i) an authorisation issued by the Minister for Enterprise, Trade and Employment under the European Communities (Life Assurance) Regulations of 1984 ( S.I. No. 57 of 1984 ) as amended, or (ii) an authorisation granted by the authority charged by law with the duty of supervising the activities of insurance undertakings in a Member State of the European Communities, other than the State, in accordance with Article 6 of Directive No. 79/267/EEC1 , who is carrying on the business of life assurance in the State, or (iii) an official authorisation to undertake insurance in Iceland, Liechtenstein and Norway pursuant to the EEA Agreement within the meaning of the European Communities (Amendment) Act, 1993 , and who is carrying on the business of life assurance in the State;

‘qualifying long-term care policy’ means a policy which provides for the discharge or reimbursement of expenses of long-term care services for a relevant individual and which, in accordance with the provisions of this section, is approved of by the Revenue Commissioners for the purposes of this section; ‘relative’, in relation to an individual or the spouse of the individual, includes a relation by marriage and a person in respect of whom the individual is or was the legal guardian; ‘relevant individual’, in relation to a qualifying long-term care policy, means a qualifying individual in relation to that policy in respect of whom a practitioner has certified that the individual is— (a) unable to perform (without substantial assistance from another individual) at least 2 of the activities of daily living for a period of at least 90 days due to a loss of functional capacity, or (b) requires substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment; ‘transferring’ means the ability to move from a bed to an upright chair or a wheelchair and vice versa.

(2)(a) A person shall not be a qualifying insurer until such time as the person has been entered in a register maintained by the Revenue Commissioners for the purposes of this section and any regulations made thereunder. (b) Where at any time a qualifying insurer— (i) is not resident in the State, or (ii) is not carrying on business in the State through a fixed place of business, the qualifying insurer shall ensure that there is a person resident in the State and appointed by the qualifying insurer to be responsible for the discharge of all the duties and obligations imposed on the qualifying insurer by this section and any regulations made thereunder. (c) Where a qualifying insurer appoints a person in accordance with paragraph (b), that insurer shall advise the Revenue Commissioners of the identity of that person and the fact of the person's appointment.
(3)(a) The Revenue Commissioners shall not approve a policy for the purposes of this section unless they are satisfied that— (i) the only benefits provided under the policy are the discharge or reimbursement of expenses of long-term care services in respect of an individual who is a relevant individual in relation to the policy, (ii) the policy is either not expressed to be terminable by the insurer under the terms of the policy, or is expressed to be so terminable only in special circumstances mentioned in the policy, (iii) the policy secures that for the purposes of the policy the question of whether an individual is a relevant individual shall be determined by reference to at least 5 activities of daily living, (iv) subject to paragraph (b), the policy does not provide for— (I) a lump sum payment on termination, (II) a cash surrender value, or (III) any other money, that can be paid or assigned to any person, borrowed, or pledged as collateral for a loan, and (v) the policy is not connected with any other policy. (b) A policy shall not fail to meet the requirements of paragraph (a)(iv) merely because it provides for the payment of periodic amounts of money without regard to the expenses incurred on the services provided during the period to which the payments relate. (c) A policy is connected with another policy, whether held by the same person or another person, if— (i) either policy was issued in respect of an assurance made with reference to the other, or with a view to enabling the other to be made on particular terms, or with a view to facilitating the making of the other on particular terms, and (ii) the terms on which either policy was issued would have been different if the other policy had not been issued.
(4)(a) A long-term care policy shall be a qualifying long-term care policy within the meaning of this section if it conforms with a form which at the time it is issued is either— (i) a standard form approved by the Revenue Commissioners as a standard form of qualifying long-term care policy, or (ii) a form varying from a standard form so approved in no other respects than by making such alterations to that standard form as are, at the time the policy is issued, approved by the Revenue Commissioners as being compatible with a qualifying long-term care policy when made to that standard form and satisfying any conditions subject to which the alterations are so approved. (b) In approving a policy, or a standard form of a policy, as a qualifying long-term care policy for the purposes of this section, the Revenue Commissioners may disregard any provision of the policy which appears to them insignificant.
(5)Where, for any year of assessment, an individual, who is resident in the State, makes a payment to a qualifying insurer in respect of a premium under a qualifying long-term care policy, the beneficiary of which is a qualifying individual in relation to the individual, the individual making the payment shall, subject to the condition specified in subsection (6), be entitled to relief under this section in accordance with subsection (8).
(6)The condition specified in this subsection is that, at the time the long-term care policy is entered into, the individual (in this subsection referred to as the ‘declarer’) furnishes to the qualifying insurer a declaration in writing which— (a) is made and signed by the declarer, (b) is made in such form as may be prescribed or authorised by the Revenue Commissioners, (c) contains the declarer's full name, the address of his or her permanent residence and his or her PPS Number, (d) declares that— (i) at the time the declaration is made that he or she is resident in the State, and (ii) the beneficiary under the policy is a qualifying individual in relation to the declarer, and (e) contains an undertaking that if, at any time while the long-term care policy is in force, the declarer ceases to be resident in the State he or she will notify the qualifying insurer accordingly.
(7)(a) A qualifying insurer shall— (i) keep and retain for the longer of the following periods— (I) a period of 6 years, and (II) a period which, in relation to the long-term care policy in respect of which the declaration is made, ends not later than 3 years after the date on which premiums have ceased to be paid or payable in respect of the policy. all declarations of the kind mentioned in subsection (6) which have been made in respect of qualifying long-term care policies issued by the qualifying insurer, and (ii) on being so required by notice given to that insurer in writing by an inspector, make available within the State to the inspector, within the time specified in the notice, all or any of the declarations of the kind mentioned in subsection (6). (b) The inspector may examine or take extracts from or copies of any declarations made available to him or her under paragraph (a).
(8)(a) Where an individual makes a payment to a qualifying insurer in respect of which he or she is entitled to relief under this section, the individual shall be entitled to deduct and retain out of the payment an amount equal to the appropriate percentage for the year of assessment in which payment of the premium falls due. (b) The qualifying insurer to whom a payment referred to in paragraph (a) is made— (i) shall accept the amount paid after deduction in discharge of the individual's liability to the same extent as if the deduction had not been made, and (ii) may, on making a claim in accordance with regulations, recover from the Revenue Commissioners an amount equal to the amount deducted.
(9)(a) The Revenue Commissioners shall make regulations providing generally as to administration of this section and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision— (i) for the registration of persons as qualifying insurers for the purposes of this section and those regulations, (ii) that a claim under subsection (8)(b)(ii) by a qualifying insurer shall— (I) be made in such form and manner, (II) be made at such time, and (III) be accompanied by such documents, as provided for in the regulations, (iii) for the making of annual information returns by qualifying insurers, in such form (including electronic form) and manner as may be prescribed, and containing specified details in relation to— (I) each individual making payments to such insurers under qualifying long-term care policies in a year of assessment, (II) the total amount of premiums paid under a qualifying long-term care policy by that individual in the year of assessment, and (III) the total amount deducted by that individual under subsection (8)(a), and (iv) for the furnishing of information to the Revenue Commissioners for the purposes of the regulations. (b) 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 annualling 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.
(10)(a) Where any amount is paid to a qualifying insurer by the Revenue Commissioners as an amount recoverable by virtue of subsection (8)(b)(ii) but is an amount to which that qualifying insurer is not entitled, that amount shall be repaid by the qualifying insurer. (b) There shall be made such assessments, adjustments or set-offs as may be required for securing repayment of the amount referred to in paragraph (a) and the provisions of this Act relating to the assessment, collection and recovery of income tax shall, in so far as they are applicable and with necessary modification, apply in relation to the recovery of such amount.
(11)Where relief is given under this section in respect of a payment, relief shall not be given under any other provision of the Income Tax Acts in respect of that payment.
(12)The Revenue Commissioners may nominate any of their officers, including an inspector, to perform any acts and discharge any functions authorised by this section, other than those specified in subsection (9), to be performed or discharged by them.”, (b) in Chapter 1 of Part 44, by the substitution in section 1024(2)(a) of the following for subparagraph (vi): “(vi) relief under sections 470, 470A and 473, to the husband or to the wife according as he or she made the payment giving rise to the relief;”, and (c) in Schedule 29, by the insertion, in column 1, after “section 121” of “section 470A and Regulations under that section”.

Taxation of certain perquisites.

21.—As respects the year of assessment 2001 and subsequent years of assessment, the Principal Act is amended in Chapter 1 of Part 5 by the insertion of the following section after section 112: “112A.—(1) In this section— ‘appropriate percentage’, ‘authorised insurer’, ‘relevant contract’ and ‘relievable amount’ have the same meanings, respectively, as in section 470, and ‘qualifying insurer’ and ‘qualifying long-term care policy’ have the same meanings, respectively, as in section 470A.

(2)Section 112 shall apply in relation to a perquisite comprising the payment to— (a) an authorised insurer under a relevant contract, or (b) a qualifying insurer under a qualifying long-term care policy as if any deduction authorised by— (i) in a case in which paragraph (a) applies, section 470(3)(a), or (ii) in a case in which paragraph (b) applies, section 470A(8)(a), had not been made.
(3)Where, for any year of assessment, an employer (within the meaning of section 983)— (a) makes a payment of emoluments consisting of a perquisite of the kind mentioned in subsection (2), and (b) deducts therefrom and retains in accordance with— (i) section 470(3)(a), an amount equal to the appropriate percentage for the year of assessment of the relievable amount in relation to the payment, or (ii) section 470A(8)(a), an amount equal to the appropriate percentage for the year of assessment of the payment, the employer shall be assessed and charged to income tax in an amount equal to the amount so deducted and retained and that amount shall be allowable as a deduction in charging to tax the profits or gains of such employer.
(4)Subsections (3) to (6) of section 238 shall apply, with necessary modifications, in relation to a payment referred to in subsection (3) as they apply in relation to a payment to which that section applies.”.

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

22.—(1) As respects the year of assessment 2001 and subsequent years of assessment, the Principal Act is amended in Chapter 4 of Part 38 by the insertion of the following after section 904D (inserted by the Finance Act, 2000 ): “Power of inspection: claims by authorised insurers.

904E.—(1) In this section— ‘authorised insurer’ has the same meaning as in section 470; ‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section.

(2)An authorised officer may at all reasonable times enter any premises or place of business of an authorised insurer for the purpose of auditing for a year of assessment claims made by the authorised insurer under section 470(3)(b)(ii).
(3)Without prejudice to the generality of subsection (2), the authorised officer may— (a) examine the procedures put in place by the authorised insurer in relation to the vouching of claims referred to in that subsection, and (b) check a sample of the cases in respect of which such a claim has been made to determine whether the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate.
(4)An authorised officer may require an authorised insurer or an employee of the authorised insurer to furnish information, explanations and particulars and to give all assistance which the authorised officer reasonably requires for the purposes of his or her audit and examination under subsections (2) and (3).
(5)An authorised officer when exercising or performing his or her powers or duties under this section shall, on request, produce his or her authorisation for the purposes of this section.
(6)An employee of an authorised insurer who fails to comply with the requirements of the authorised officer in the exercise or performance of the authorised officer's powers or duties under this section shall be liable to a penalty of £1,000.
(7)An authorised insurer which fails to comply with the requirements of the authorised officer in the exercise or performance of the authorised officer's powers or duties under this section shall be liable to a penalty of £15,000 and, if that failure continues, a further penalty of £2,000 for each day on which the failure continues.”.
(2)As respects the year of assessment 2002 and subsequent years of assessment, section 904E (inserted by subsection (1)) of the Principal Act is amended— (a) by the substitution in subsection (6) of “€1,265” for “£1,000”, and (b) by the substitution in subsection (7) of— (i) “€19,045” for “£15,000”, and (ii) “€2,535” for “£2,000”.
(3)As respects the year of assessment 2002 and subsequent years of assessment, the Principal Act is amended in Chapter 4 of Part 38 by the insertion of the following after section 904E (inserted by subsection (1)): “Power of inspection: claims by qualifying lenders.

904F.—(1) In this section— ‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section; ‘books, records or other documents’ includes— (a) any records used in the business of a qualifying lender whether— (i) comprised in bound volume, loose-leaf binders or other loose-leaf filing system, loose-leaf ledger sheets, pages, folios or cards, or (ii) kept on microfilm, magnetic tape or in any non-legible form (by the use of electronics or otherwise) which is capable of being reproduced in a legible form, and (b) every electronic or other automatic means, if any, by which any such thing in non-legible form is so capable of being reproduced, and (c) documents in manuscript, documents which are typed, printed, stencilled or created by any other mechanical or partly mechanical process in use from time to time and documents which are produced by any photographic or photostatic process, and (d) correspondence and records of other communications between a qualifying lender and an individual having a qualifying mortgage loan from that qualifying lender; ‘qualifying lender’ and ‘qualifying mortgage loan’ have the same meanings respectively as in section 244A.

(2)An authorised officer may at all reasonable times enter any premises or place of business of a qualifying lender for the purpose of auditing for a year of assessment claims made by the qualifying lender under section 244A(2)(b)(ii).
(3)Without prejudice to the generality of subsection (2), the authorised officer may— (a) examine the procedures put in place by the qualifying lender in relation to the vouching of claims referred to in that subsection, and (b) check a sample of the cases in respect of which such a claim has been made to determine whether the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate.
(4)An authorised officer may require a qualifying lender or an employee of the qualifying lender to produce books, records or other documents and to furnish information, explanations and particulars and to give all assistance, which the authorised officer reasonably requires for the purposes of his or her audit and examination under subsections (2) and (3).
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AI explanation based on the official legal text. Indicative, not a substitute for legal advice.