Finance Act, 1999

Finance Act, 1999 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 1999 Finance Act, 1999 Finance Act, 1999 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 2 of 1999 FINANCE ACT, 1999 ARRANGEMENT OF SECTIONS

PART 1

Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation Section

Section 1

Interpretation (Part 1).

Chapter 2

Income Tax

Section 2

Amendment of provisions relating to exemption from income tax.

Section 3

Alteration of rates of income tax.

Section 4

Personal reliefs.

Section 5

Reliefs for widowed parents and other single parents.

Section 6

Amendment of Chapter 1 of Part 15 of the Principal Act.

Section 7

Employee allowance.

Section 8

Amendment of section 468 (relief for blind persons) of Principal Act.

Section 9

Employed person taking care of incapacitated individual.

Section 10

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

Section 11

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

Section 12

Treatment of income arising as a result of certain public subscriptions raised on behalf of incapacitated individuals.

Section 13

Amendment of Chapter 1 (income tax) of Part 7 of Principal Act.

Section 14

Amendment of section 201 (exemptions and reliefs in respect of tax under section 123) of Principal Act.

Section 15

Seafarer allowance, etc.

Section 16

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

Section 17

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

Section 18

Amendment of Chapter 2 (payments to subcontractors in certain industries) of Part 18 of Principal Act.

Section 19

Retirement benefits.

Section 20

Purchased life annuities.

Section 21

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

Section 22

Amendment of section 869 (delivery, service and evidence of notices and forms) of Principal Act.

Section 23

Amendment of section 961 (issue of demand notes and receipts) of Principal Act.

Section 24

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

Section 25

Amendment of section 987 (penalties for breach of regulations) of Principal Act.

Section 26

Relief for fees paid to publicly funded colleges in the European Union for full-time third level education.

Chapter 3

Dividend Withholding Tax

Section 27

Dividend withholding tax.

Section 28

Distributions to certain non-residents.

Section 29

Amendment of section 831 (implementation of Council Directive No. 90/435/EEC concerning the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States) of Principal Act.

Chapter 4

Income Tax, Corporation Tax and Capital Gains Tax

Section 30

Construction of references to oaths, etc.

Section 31

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

Section 32

Amendment of section 110 (securitisation of assets) of Principal Act.

Section 33

Amendment of section 118 (benefits-in-kind: general charging provision) of Principal Act.

Section 34

Exemption from benefit-in-kind of certain childcare facilities.

Section 35

Amendment of section 472A (relief for the long-term unemployed) of Principal Act.

Section 36

Amendment of section 485 (relief for gifts to third-level institutions) of Principal Act.

Section 37

Relief for gifts to the Scientific and Technological Education (Investment) Fund.

Section 38

Amendment of section 225 (employment grants) of Principal Act.

Section 39

Amendment of section 246 (interest payments by companies and to non-residents) of Principal Act.

Section 40

Returns of interest paid to non-residents.

Section 41

Amendment of Schedule 29 (provisions referred to in sections 1052, 1053 and 1054) to Principal Act.

Section 42

Amendment of section 2 (commencement) of Urban Renewal Act, 1998.

Section 43

Amendment of section 330 (interpretation (Chapter 2)) of Principal Act.

Section 44

Amendment of Chapter 3 (designated areas, designated streets, enterprise areas and multi-storey car parks in certain urban areas) of Part 10 of Principal Act.

Section 45

Amendment of section 351 (interpretation (Chapter 4)) of Principal Act.

Section 46

Amendment of section 360 (interpretation (Chapter 5)) of Principal Act.

Section 47

Amendment of Chapter 8 (qualifying rural areas) of Part 10 of Principal Act.

Section 48

Capital allowances for private convalescent homes.

Section 49

Capital allowances for buildings used for certain childcare purposes.

Section 50

Relief for provision of certain student accommodation.

Section 51

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

Section 52

Amendment of section 403 (restriction on use of capital allowances for certain leased assets) of Principal Act.

Section 53

Capital allowances for, and deduction in respect of, vehicles.

Section 54

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

Section 55

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

Section 56

Amendment of Chapter 1 (general) of Part 20 (companies' chargeable gains) of Principal Act.

Section 57

Restriction on set-off of pre-entry losses.

Section 58

Amendment of section 746 (offshore income gains accruing to persons resident or domiciled abroad) of Principal Act.

Section 59

Amendment of Chapter 1 (purchase and sale of securities) of Part 28 of Principal Act.

Section 60

Amendment of Part 33 (anti-avoidance) of Principal Act.

Section 61

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

Section 62

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

Section 63

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

Section 64

Amendment of section 738 (undertakings for collective investment) of Principal Act.

Section 65

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

Section 66

Amendment of section 839 (limits to special investments) of Principal Act

Section 67

Amendment of section 832 (provisions in relation to Convention for reciprocal avoidance of double taxation in the State and the United Kingdom of income and capital gains) of Principal Act.

Chapter 5

Savings-Related Share Option Schemes and Employee Share Schemes

Section 68

Savings-related share option schemes.

Section 69

Employee share schemes.

Chapter 6

Income Tax and Corporation Tax: Tax Reliefs for the Provision of Park and Ride Facilities and for Certain Related Developments

Section 70

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.

Chapter 7

Corporation Tax

Section 71

Rate of corporation tax.

Section 72

Amendment of section 22 (reduced rate of corporation tax for certain income) of Principal Act.

Section 73

Higher rate of corporation tax.

Section 74

Provisions relating to 10 per cent rate of corporation tax.

Section 75

Amendment of section 88 (deduction for gifts to Enterprise Trust Ltd.) of Principal Act.

Section 76

Income of Investor Compensation Company Ltd.

Section 77

Withdrawal of exemption from corporation tax for Board Gáis Éireann.

Section 78

Amendment of Chapter 5 (group relief) of Part 12 of Principal Act.

Section 79

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

Section 80

Amendment of section 486 (corporation tax: relief for gifts to First Step) of Principal Act.

Section 81

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

Section 82

Company residence.

Section 83

Amendment of section 882 (particulars to be supplied by new companies) of Principal Act.

Section 84

Amendment of Chapter 2 (other corporation tax penalties) of Part 47 of Principal Act.

Section 85

Amendment of sections 198, 710 and 734 of Principal Act.

Section 86

Amendment of section 707 (management expenses) of Principal Act.

Chapter 8

Capital Gains Tax

Section 87

Amendment of section 541A (treatment of debts on a change in currency) of Principal Act.

Section 88

Amendment of Chapter 3 (assets held in a fiduciary or representative capacity, inheritances and settlements) of Part 19 of Principal Act.

Section 89

Amendment of Chapter 4 (shares and securities) of Part 19 of Principal Act.

Section 90

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

Section 91

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

Section 92

Amendment of Chapter 5 (capital gains tax: returns, information, etc.) of Part 38 of Principal Act.

Section 93

Amendment of Schedule 15 (list of bodies for purposes of section 610) to Principal Act.

PART 2

Customs and Excise

Chapter 1

Mineral Oil Tax

Section 94

Interpretation (Chapter 1).

Section 95

Charge of tax.

Section 96

Rates.

Section 97

Rates lower than standard rates.

Section 98

Horticultural production.

Section 99

Passenger road services.

Section 100

Reliefs from mineral oil tax for certain mineral oils.

Section 101

Licensing.

Section 102

Offences.

Section 103

Presumptions in certain proceedings.

Section 104

Regulations.

Section 105

General provisions.

Section 106

Repeals and revocations.

Section 107

Continuity.

Section 108

Care and management of mineral oil tax.

Section 109

Commencement (Chapter 1).

Chapter 2

Miscellaneous

Section 110

Hydrocarbons.

Section 111

Tobacco products.

Section 112

Amendment of section 104 (excisable products) of Finance Act, 1992.

Section 113

Amendment of Chapter II (Powers of Officers) of Part II of Finance Act, 1995.

Section 114

Amendment of section 105 (appeals to the Appeal Commissioners) of Finance Act, 1995.

Section 115

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

Section 116

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

Section 117

Bets, reduction in rate of excise duty.

Section 118

Increase in penalties for betting offences.

PART 3

Value-Added Tax

Section 119

Interpretation (Part 3).

Section 120

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

Section 121

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

Section 122

Special scheme for investment gold.

Section 123

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

Section 124

Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

Section 125

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

Section 126

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

Section 127

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

Section 128

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

Section 129

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

Section 130

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

Section 131

Special scheme for agricultural machinery.

Section 132

Amendment of section 13 (remission of tax on goods exported, etc.) of Principal Act.

Section 133

Amendment of section 16 (duty to keep records) of Principal Act.

Section 134

Amendment of section 17 (invoices) of Principal Act.

Section 135

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

Section 136

Generation of estimates and assessments by electronic, photographic or other process.

Section 137

Amendment of section 32 (regulations) of Principal Act.

Section 138

Amendment of First Schedule to Principal Act.

Section 139

Amendment of Second Schedule to Principal Act.

PART 4

Stamp Duties

Chapter 1

General Provisions

Section 140

Provision relating to First Schedule to Stamp Act, 1891.

Section 141

Amendment of section 114 (exemption from stamp duty of transfers by spouses) of Finance Act, 1990.

Section 142

Amendment of section 207 (exemption from stamp duty of certain financial services instruments) of Finance Act, 1992.

Section 143

Amendment of section 106 (exemption from stamp duty of certain loan capital and securities) of Finance Act, 1993.

Section 144

Amendment of section 150 (stock borrowing) of Finance Act, 1995.

Section 145

Amendment of section 121 (surcharges) of Finance Act, 1997.

Section 146

Amendment of section 6 (commencement (Part 2)) of Finance (No. 2) Act, 1998.

Chapter 2

Pre-consolidation Measures

Section 147

Interpretation (Chapter 2).

Section 148

Application (Chapter 2).

Section 149

Amendment of section 3 (power to grant licences to deal in stamps) of Management Act of 1891.

Section 150

Amendment of section 4 (penalty for unauthorised dealing in stamps, etc.) of Management Act of 1891.

Section 151

Amendment of section 6 (penalty for hawking stamps) of Management Act of 1891.

Section 152

Amendment of section 13 (certain offences in relation to dies and stamps provided by Commissioners to be felonies) of Management Act of 1891.

Section 153

Amendment of section 18 (licensed person in possession of forged stamps to be presumed guilty until contrary is shown) of Management Act of 1891.

Section 154

Amendment of section 20 (as to defacement of adhesive stamps) of Management Act of 1891.

Section 155

Amendment of section 21 (penalty for frauds in relation to duties) of Management Act of 1891.

Section 156

Amendment of section 5 (facts and circumstances affecting duty to be set forth in instruments) of Act of 1891.

Section 157

Amendment of section 8 (general direction as to the cancellation of adhesive stamps) of Act of 1891.

Section 158

Amendment of section 9 (penalty for frauds in relation to adhesive stamps) of Act of 1891.

Section 159

Amendment of section 16 (rolls, books, etc. to be open to inspection) of Act of 1891.

Section 160

Amendment of section 17 (penalty for enrolling, etc. instrument not duly stamped) of Act of 1891.

Section 161

Amendment of section 100 (penalty for not making out policy, or making, etc. any policy not duly stamped) of Act of 1891.

Section 162

Amendment of section 107 (penalty for issuing share warrant not duly stamped) of Act of 1891.

Section 163

Amendment of section 109 (penalty for issuing stock certificate unstamped) of Act of 1891.

Section 164

Amendment of section 49 (exemption of certain instruments from stamp duty) of Finance Act, 1969.

Section 165

Amendment of section 41 (stamp duty on bills of exchange and promissory notes) of Finance Act, 1970.

Section 166

Amendment of section 109 (application of certain provisions relating to penalties under Income Tax Act, 1967) of Finance Act, 1991.

Section 167

Amendment of section 107 (particulars to be delivered in cases of transfers and leases) of Finance Act, 1994.

Section 168

Amendment of section 112 (relief from stamp duty in respect of transfers to young trained farmers) of Finance Act, 1994.

Section 169

Amendment of section 107 (relief for member firms) of Finance Act, 1996.

Section 170

Amendment of section 108 (obligations of system-members) of Finance Act, 1996.

Section 171

Amendment of section 14 (relief from stamp duty for certain new houses or apartments) of Finance (No. 2) Act, 1998.

Section 172

Amendment of section 26 (recovery of fines) of Management Act of 1891.

Section 173

Amendment of section 13 (persons dissatisfied may appeal) of Act of 1891.

Section 174

Amendment of section 74 (appeals in certain cases) of Finance Act, 1973.

Section 175

Amendment of section 103 (provision relating to voluntary disposition inter vivos, etc.) of Finance Act, 1991.

Section 176

Amendment of First Schedule to Act of 1891.

Section 177

Amendment of section 23 (certain mortgages of stock to be chargeable as agreements) of Act of 1891.

Section 178

Amendment of section 41 (bills of sale) of Act of 1891.

Section 179

Amendment of section 118 (assignment of policy of life assurance to be stamped before payment of money assured) of Act of 1891.

Section 180

Amendment of section 74 (stamp duty on gifts inter vivos) of Finance (1909-10) Act, 1910.

Section 181

Amendment of section 31 (certain contracts for sale of leasehold interests to be chargeable as conveyances on sale) of Finance Act, 1978.

Section 182

Amendment of section 19 (conveyance or transfer on sale — limit on stamp duty in the case of certain transactions between bodies corporate) of Finance Act, 1952.

Section 183

Amendment of section 31 (relief from capital and transfer stamp duty in case of reconstructions or amalgamations of companies) of Finance Act, 1965.

Section 184

Amendment of section 9 (procedure for obtaining allowance) of Management Act of 1891.

Section 185

Allowance for lost instruments.

Section 186

Amendment of section 1 (charge of duties in schedule) of Act of 1891.

Section 187

Amendment of section 12 (assessment of duty by Commissioners) of Act of 1891.

Section 188

Amendment of section 14 (terms upon which instruments not duly stamped may be received in evidence) of Act of 1891.

Section 189

Amendment of section 58 (direction as to duty in certain cases) of Act of 1891.

Section 190

Amendment of section 77 (directions as to duty in certain cases) of Act of 1891.

Section 191

Amendment of section 122 (definitions) of Act of 1891.

Section 192

Amendment of section 5 (extension of stamp duty on share warrants and stock certificates to bearer) of Finance Act, 1899.

Section 193

Amendment of section 40 (stamp duties in foreign currencies) of Finance Act, 1933.

Section 194

Amendment of section 69 (statement to be charged with stamp duty) of Finance Act, 1973.

Section 195

Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982.

Section 196

Amendment of section 208 (location of insurance risk for stamp duty purposes) of Finance Act, 1992.

Section 197

Repeals (Chapter 2).

PART 5

Residential Property Tax

Section 198

Amendment of section 100 (market value exemption limit) of Finance Act, 1983.

PART 6

Capital Acquisitions Tax

Section 199

Interpretation (Part 6).

Section 200

Amendment of section 36 (delivery of returns) of Principal Act.

Section 201

Amendment of Second Schedule (computation of tax) to Principal Act.

Section 202

Amendment of section 41 (payment of tax and interest on tax) of Principal Act.

Section 203

Amendment of section 51 (appeals regarding value of real property) of Principal Act.

Section 204

Amendment of section 53 (exemption of small gifts) of Principal Act.

Section 205

Amendment of section 58 (exemption of certain receipts) of Principal Act.

Section 206

Exemption relating to retirement benefits.

PART 7

Miscellaneous

Section 207

Amendment of Chapter 4 (revenue powers) of Part 38 of Taxes Consolidation Act, 1997.

Section 208

Power to obtain information from a Minister of the Government or public body.

Section 209

Electronic filing of tax returns.

Section 210

Amendment of section 884 (returns of profits) of Taxes Consolidation Act, 1997.

Section 211

Amendment of section 1078 (revenue offences) of Taxes Consolidation Act, 1997.

Section 212

Amendment of section 1094 (tax clearance in relation to certain licences) of Taxes Consolidation Act, 1997.

Section 213

Discharge by Minister for Finance of liability in respect of certain borrowings by Minister for Agriculture and Food.

Section 214

Amendment of Industrial Development Act, 1995.

Section 215

Capital Services Redemption Account.

Section 216

Care and management of taxes and duties.

Section 217

Short title, construction and commencement.

SCHEDULE 1 Amendments Consequential on Change in Rate of Corporation Tax SCHEDULE 2 Rates of Mineral Oil Tax SCHEDULE 3 Repeals and Revocations relating to Excise Duty on Mineral Oil SCHEDULE 4 Rates of Excise Duty on Tobacco Products SCHEDULE 5 Stamp Duties on Instruments SCHEDULE 6 Stamp Duties, etc.

Acts Referred to An Bord Bia Act, 1994 1994, No. 22 Betting Act, 1931 1931, No. 27 Bourn Vincent Memorial Park Act, 1932 1932, No. 31 Broadcasting Authority Act, 1960 1960, No. 10 Canals Act, 1986 1986, No. 3 Capital Acquisitions Tax Act, 1976 1976, No. 8 Central Bank Act, 1971 1971, No. 24 Child Care Act, 1991 1991, No. 17 Civil Legal Aid Act, 1995 1995, No. 32 Companies Act, 1867 30 & 31 Vict., c.131 Companies Act, 1963 1963, No. 33 Companies Act, 1990 1990, No. 33 Companies Acts, 1963 to 1990 Credit Union Act, 1997 1997, No. 15 Criminal Justice Act, 1984 1984, No. 22 Criminal Procedure Act, 1967 1967, No. 12 Customs and Excise (Miscellaneous Provisions) Act, 1988 1988, No. 10 Dublin Docklands Development Authority Act, 1997 1997, No. 7 Finance Act, 1894 57 & 58 Vict., c.30 Finance Act, 1895 58 Vict., c.16 Finance Act, 1899 62 & 63 Vict., c.9 Finance Act, 1902 2 Edw 7, c.7 Finance Act, 1907 7 Edw 7, c.13 Finance (1909-10) Act, 1910 10 Edw 7, c.8 Finance Act, 1923 1923, No. 21 Finance Act, 1924 1924, No. 27 Finance Act, 1925 1925, No. 28 Finance Act, 1926 1926, No. 35 Finance Act, 1928 1928, No. 11 Finance Act, 1930 1930, No. 20 Finance Act, 1931 1931, No. 31 Finance (Customs Duties) (No. 4) Act, 1931 1931, No. 43 Finance Act, 1932 1932, No. 20 Finance Act, 1933 1933, No. 15 Finance Act, 1935 1935, No. 28 Finance (Miscellaneous Provisions) Act, 1935 1935, No. 7 Finance Act, 1936 1936, No. 31 Finance Act, 1939 1939, No. 18 Finance Act, 1940 1940, No. 14 Finance Act, 1941 1941, No. 14 Finance Act, 1942 1942, No. 14 Finance Act, 1943 1943, No. 16 Finance Act, 1946 1946, No. 15 Finance Act, 1948 1948, No. 12 Finance Act, 1949 1949, No. 13 Finance Act, 1950 1950, No. 18 Finance Act, 1951 1951, No. 15 Finance Act, 1952 1952, No. 14 Finance Act, 1955 1955, No. 13 Finance Act, 1956 1956, No. 22 Finance (Miscellaneous Provisions) Act, 1956 1956, No. 47 Finance Act, 1957 1957, No. 20 Finance Act, 1958 1958, No. 25 Finance Act, 1959 1959, No. 18 Finance Act, 1960 1960, No. 19 Finance Act, 1964 1964, No. 15 Finance Act, 1965 1965, No. 22 Finance Act, 1966 1966, No. 17 Finance Act, 1968 1968, No. 33 Finance (Miscellaneous Provisions) Act, 1968 1968, No. 7 Finance Act, 1969 1969, No. 21 Finance Act, 1970 1970, No. 14 Finance Act, 1973 1973, No. 19 Finance Act, 1974 1974, No. 27 Finance Act, 1976 1976, No. 16 Finance (Excise Duty on Tobacco Products) Act, 1977 1977, No. 32 Finance Act, 1978 1978, No. 21 Finance Act, 1979 1979, No. 11 Finance Act, 1980 1980, No. 14 Finance Act, 1981 1981, No. 16 Finance (No. 2) Act, 1981 1981, No. 28 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, 1990 1990, No. 10 Finance Act, 1991 1991, No. 13 Finance Act, 1992 1992, No. 9 Finance (No. 2) Act, 1992 1992, 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 Fire Services Act, 1981 1981, No. 30 Fisheries Act, 1980 1980, No. 1 Forestry Act, 1988 1988, No. 26 Glebe Loan (Ireland) Act, 1870 32 & 33 Vict., c.112 Grass Meal (Production) Act, 1953 1953, No. 11 Great Northern Railway Act, 1958 1958, No. 20 Harbours Act, 1996 1996, No. 11 Higher Education Authority Act, 1971 1971, No. 22 Hospitals Federation and Amalgamation Act, 1961 1961, No. 21 Housing Act, 1966 1966, No. 21 Housing Acts, 1966 to 1998 Housing (Miscellaneous Provisions) Act, 1979 1979, No. 27 Housing (Miscellaneous Provisions) Act, 1992 1992, No. 18 Industrial Alcohol (Amendment) Act, 1947 1947, No. 2 Industrial Training Act, 1967 1967, No. 5 Inland Revenue Regulation Act, 1890 53 & 54 Vict., c.21 Industrial Development Act, 1986 1986, No. 20 Industrial Development Act, 1993 1993, No. 19 Industrial Development Act, 1995 1995, No. 28 Insurance Act, 1990 1990, No. 26 Intoxicating Liquor Act, 1960 1960, No. 18 Irish Medicines Board Act, 1995 1995, No. 29 Licencing (Ireland) Act, 1902 2 Edw., c.18 Limited Partnerships Act, 1907 7 Edw. 7., c.24 Local Authorities (Higher Education Grants) Acts, 1968 to 1992 Local Government (Dublin) Act, 1993 1993, No. 31 Local Government (Planning and Development) Act, 1963 1963, No. 28 Local Government (Planning and Development) Acts, 1963 to 1998 Marine Institute Act, 1991 1991, No. 2 Metrology Act, 1996 1996, No. 27 Minerals Company Act, 1945 1945, No. 7 Minerals Development Act, 1940 1940, No. 31 National Building Agency Limited Act, 1963 1963, No. 32 National Standards Authority of Ireland Act, 1996 1996, No. 28 National Treasury Management Agency Act, 1990 1990, No. 18 Nelson Pillar Act, 1969 1969, No. 9 Oaths Act, 1888 51 & 52 Vict., c.46 Petroleum and Other Minerals Development Act, 1960 1960, No. 7 Postal and Telecommunications Services Act, 1983 1983, No. 24 Property Values (Arbitrations and Appeals) Act, 1960 1960, No. 45 Public Works (Ireland)(No. 2) Act, 1846 9 & 10 Vict., c.86 Radiological Protection Act, 1991 1991, No. 9 Railways Act, 1924 1924, No. 29 Redundancy Payments Acts, 1967 to 1991 Revenue Act, 1898 61 & 62 Vict., c.46

Road Transport Act, 1932 1932, No. 2 Roads Act, 1920 10 & 11 Geo. c.72 Scientific and Technological Education (Investment) Fund Act, 1997 1997, No. 46 Scientific and Technological Education (Investment) Fund (Amendment) Act, 1998 1998, No. 53 Sea Fisheries Act, 1952 1952, No. 7 Shannon Free Airport Development Company Limited (Amendment) Act, 1970 1970, No. 9 Shannon Free Airport Development Company Limited (Amendment) Act, 1983 1983, No. 13 Shannon Navigation Act, 1990 1990, No. 20 Social Welfare (Consolidation) Act, 1993 1993, No. 27 Stamp Act, 1891 54 & 55 Vict., c.39 Stamp Duties Management Act, 1891 54 & 55 Vict., c.38 Stock Exchange Act, 1995 1995, No. 9 Taxes Consolidation Act, 1997 1997, No. 39 The Institution of Civil Engineers of Ireland (Charter Amendment) Act, 1969 1969, No. 1 (Private) Transport Act, 1944 1944, No. 21 Transport Act, 1950 1950, No. 12 Transport (Re-Organisation of Córas Iompair Éireann) Act, 1986 1986, No. 31 Trustee Savings Banks Act, 1989 1989, No. 21 Urban Renewal Act, 1998 1998, No. 27 Unit Trusts Act, 1990 1990, No. 37 Value-Added Tax Act, 1972 1972, No. 22 Value-Added Tax (Amendment) Act, 1978 1978, No. 34 Wildlife Act, 1976 1976, No. 39 Youth Employment Agency Act, 1981 1981, No. 32 Number 2 of 1999 FINANCE ACT, 1999 AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE) AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE. [25th March, 1999] 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, “the Principal Act” means the Taxes Consolidation Act, 1997 .

Chapter 2

Income Tax Amendment of provisions relating to exemption from income tax.

2.—As respects the year of assessment 1999-2000 and subsequent years of assessment, Chapter 1 of Part 7 of the Principal Act is hereby amended— (a) in section 187, by the substitution, in subsection (1), of the following for paragraph (a): “(a) in the case of an individual referred to in paragraph (a) of the definition of ‘specified amount’ in section 461(1) (inserted by the Finance Act, 1999), £8,200, and”, and (b) in section 188, by the substitution of the following for subsection (2): “(2) In this section, ‘the specified amount’ means, subject to section 187 (2)— (a) in the case of an individual referred to in paragraph (a) of the definition of ‘specified amount’ in section 461(1) (inserted by the Finance Act, 1999), £13,000, and (b) in any other case £6,500.”.

Alteration of rates of income tax.

3.—Section 15 of the Principal Act is hereby amended, as respects the year of assessment 1999-2000 and subsequent years of assessment, 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)

24 per cent the standard rate The remainder ... ... ...

46 per cent the higher rate

PART 2

Part of taxable income Rate of tax Description of rate

(1)

(2)

24 per cent the standard rate The remainder ... ... ...

46 per cent the higher rate Personal reliefs.

4.—As respects the year of assessment 1999-2000 and subsequent years of assessment, the Principal Act is hereby amended— (a) by the substitution of the following for section 461: “Standard rated personal allowances.

461.—(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; ‘the specified amount’, in relation to an individual for a year of assessment, means— (a) £8,400, in a case in which the claimant is— (i) a married person who— (I) is assessed to tax for the year of assessment in accordance with the provisions of section 1017, or (II) proves that his or her spouse is not living with him or her but is wholly or mainly maintained by him or her for the year of assessment and that the claimant is not entitled, in computing his or her income for tax purposes for that year, to make any deduction in respect of the sums paid by him or her for the maintenance of his or her spouse, or (ii) a widowed person, other than a person to whom subparagraph (i) applies, whose spouse has died in the year of assessment, and (b) £4,200 in the case of any other claimant.

Additional allowance for widowed person.

461A.—For the purpose of ascertaining his or her taxable income for a year of assessment, a widowed person, other than a person referred to in paragraph (a) of the definition of ‘specified amount’ in section 461(1), shall be entitled to a deduction of £500.”, and (b) in the Table to section 458— (i) by the substitution, in Part 1, of “section 461A” for “section 461”, and (ii) by the insertion, in Part 2, after “section 244” of “section 461(2)”.

Reliefs for widowed parents and other single parents.

5.—As respects the year of assessment 1999-2000 and subsequent years of assessment, the Principal Act is hereby amended— (a) by the substitution of the following for section 462: “Widowed parents and other single parents: standard rated allowance.

462.—(1) (a) 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; ‘qualifying child, in relation to any claimant and year of assessment, means— (i) a child— (I) born in the year of assessment, (II) who, at the commencement of the year of assessment, is under the age of 18 years, or (III) who, if over the age of 18 years at the commencement of the year of assessment— (A) is receiving full-time instruction at any university, college, school or other educational establishment, or (B) is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself and had become so permanently incapacitated before he or she had attained the age of 21 years or had become so permanently incapacitated after attaining the age of 21 years but while he or she had been in receipt of such full-time instruction, and (ii) a child who is a child of the claimant or, not being such a child, is in the custody of the claimant and is maintained by the claimant at the claimant's own expense for the whole or part of the year of assessment. ‘the specified amount’ means £1,050. (b) This section shall apply to an individual other than an individual referred to in paragraph (a) of the definition of ‘specified amount’ in section 461(1).

Additional allowance for widowed parents and other single parents.

462A.—(1) (a) For the purposes of this section, ‘qualifying child’, in relation to a claimant and a year of assessment, has the same meaning as in section 462, and the question of whether a child is a qualifying child shall be determined on the same basis as it would be for the purposes of section 462, and subsections (4), (5)(b) and (6) of that section shall apply accordingly. (b) This section shall apply to an individual other than an individual referred to in paragraph (a) of the definition of ‘specified amount’ in section 461(1).

Amendment of Chapter 1 of Part 15 of the Principal Act.

6.—Chapter 1 of Part 15 of the Principal Act is hereby amended— (a) in section 465, by the substitution, in each place where it occurs, of “18 years” for “16 years” in paragraphs (a) and (b) of subsection (1) and paragraph (a) of subsection (2), and (b) in section 469, by the substitution in subsection (1), in the definition of “dependant”, of “18 years” for “16 years” in each place where it occurs.

Employee allowance.

7.—As respects the year of assessment 1999-2000 and subsequent years of assessment, the Principal Act is hereby amended— (a) in the Table to section 458— (i) by the deletion of “section 472” from Part 1, and (ii) by the insertion, in Part 2, of “section 472” after “section 462” (inserted by this Act), and (b) in section 472— (i) in subsection (1)(a): (I) by the insertion before the definition of “emoluments” of the following definition— “appropriate percentage', in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;”, and (II) by the insertion after the definition of “proprietary director” of the following definition— “‘the specified amount’, in relation to an individual for a year of assessment, means the lesser of— (a) £1,000, or (b) the amount which is included in the individual's total income for the year of assessment in respect of emoluments, and, in the case where the claimant is a married person assessed to tax in accordance with section 1017, the specified amount in relation to the individual's spouse shall be the amount which would have been the specified amount in relation to that spouse if he or she had been assessed in accordance with section 1016;”, (ii) by the substitution of the following for subsection (4): “(4) Where, for any year of assessment, a claimant proves that his or her total income for the year consists in whole or in part of emoluments, the income tax to be charged on the individual, other than in accordance with section 16(2), for that year of assessment shall be reduced by an amount which is the lesser of— (a) an amount equal to the appropriate percentage of the specified amount in relation to that individual and, where the claimant is a married person assessed to tax in accordance with section 1017, the specified amount in relation to that individual's spouse, or (b) the amount which reduces that income tax to nil.”, and (iii) by the substitution of the following for subsection (5): “(5) Where a reduction under this section is to be made from income charged to tax for any year of assessment by virtue of the operation of subsection (2), such reduction shall be given by means of repayment of tax.”.

Amendment of section 468 (relief for blind persons) of Principal Act.

8.—As respects the year of assessment 1999-2000 and subsequent years of assessment, section 468 of the Principal Act is hereby amended in subsection (2) by the substitution of “£1,500” for “£1,000” (inserted by the Finance Act, 1998 ) in both places where it occurs and of “£3,000” for “£2,000” (as so inserted).

Employed person taking care of incapacitated individual.

9.—As respects the year of assessment 1999-2000 and subsequent years of assessment, the Principal Act is hereby amended by the substitution of the following for section 467: “467.—(1) In this section ‘relative’, in relation to an individual, includes a relation by marriage and a person in respect of whom the individual is or was the legal guardian.

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

10.— Section 122 of the Principal Act is hereby amended, as respects the year 1999-2000 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 “7 per cent” in both places where it occurs, and (b) “10 per cent” for “11 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 10 per cent 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.

11.—Section 126 of the Principal Act is hereby amended by the substitution, in subsection (8), of the following for paragraph (b) (inserted by the Finance Act, 1998 ): “(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 the 6th day of April, 1997, and ending on the 5th day of April, 2000, to a person employed in short-time employment.”.

Treatment of income arising as a result of certain public subscriptions raised on behalf of incapacitated individuals.

12.—The Principal Act is hereby amended— (a) in Chapter 1 of Part 7 by the insertion of the following section after section 189: “Special trusts for permanently incapacitated individuals.

189A.—(1) In this section— ‘incapacitated individual’ means an individual who is permanently and totally incapacitated, by reason of mental or physical infirmity, from being able to maintain himself or herself; ‘public subscriptions’ means subscription, in the form of money or other property, raised, following an appeal made in that behalf to members of the public, for the benefit of one or more incapacitated individual or individuals, whose identity or identities is or are known to the persons making the subscriptions, being subscriptions that meet either of the following conditions, namely— (a) the total amount of the subscriptions does not exceed £300,000, or (b) no amount of the subscriptions, at any time on or after the specified return date for the chargeable period for which exemption is first claimed under either subsection (2) or (3), constitutes a subscription made by any one person that is greater than 30 per cent of the total amount of the subscriptions; ‘qualifying trust’ means a trust established by deed in respect of which it is shown to the satisfaction of the inspector or, on appeal, to the Appeal Commissioners, that— (a) the trust has been established exclusively for the benefit of one or more specified incapacitated individual or individuals, for whose benefit public subscriptions, within the meaning of this section, have been raised, (b) the trust requires that— (i) the trust funds be applied for the benefit of that individual or those individuals, as the case may be, at the discretion of the trustees of the trust, and (ii) in the event of the death of that individual or those individuals, as the case may be, the undistributed part of the trust funds be applied for charitable purposes or be appointed in favour of the trustees of charitable bodies. and (c) none of the trustees of the trust is connected (within the meaning of section 10) with that individual or any of those individuals, as the case may be; ‘specified return date for the chargeable period’ has the same meaning as in section 950; ‘trust funds’ means, in relation to a qualifying trust— (a) public subscriptions, raised for the benefit of the incapacitated individual or individuals, the subject or subjects of the trust, and (b) all moneys and other property derived directly or indirectly from such public subscriptions.

Amendment of Chapter 1 (income tax) of Part 7 of Principal Act.

13.—Chapter 1 of Part 7 of the Principal Act is hereby amended— (a) in section 189, by the substitution in subsection (2) of “(by virtue of section 59 or section 745)” for “(by virtue of section 59)”, and (b) in section 192, by the substitution in subsection (2)(b) of “(by virtue of section 59 or section 745)” for “(by virtue of section 59)”.

Amendment of section 201 (exemptions and reliefs in respect of tax under section 123) of Principal Act.

14.—(1) Section 201(1)(a) of the Principal Act is hereby amended, by the substitution in the definition of “basic exemption” of “£8,000” for “£6,000” and of “£600” for “£500”.

Seafarer allowance, etc.

15.—Section 472B (inserted by the Finance Act, 1998 ) of the Principal Act is hereby amended by the substitution, in subsection (2), of the following for paragraph (b): “(b) a port outside the State shall be deemed to include a mobile or fixed rig, platform or installation of any kind in any maritime area.”.

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

16.—Part 16 of the Principal Act is hereby amended— (a) in section 488, by the substitution, as on and from the 6th day of April, 1997, in the definition of “unquoted company” in subsection (1), of the following paragraph for paragraph (b): “(b) quoted on an unlisted securities market of a stock exchange other than— (i) on the market known, and referred to in this definition, as the Developing Companies Market of the Irish Stock Exchange, or (ii) on the Developing Companies Market of the Irish Stock Exchange and on any similar or corresponding market of the stock exchange of one or more Member States of the European Communities; but this subparagraph shall not apply unless the shares, stocks or debentures are quoted on the Developing Companies Market of the Irish Stock Exchange before or at the same time as they are firstly quoted on an unlisted securities market of a stock exchange of another Member State of the European Communities.”, (b) in section 489, by the substitution in subsection (15), of “5th day of April, 2001” for “5th day of April, 1999”, and (c) in section 490, by the substitution in subsections (3)(b) and (4)(b) of “the year 2000-01” for “the year 1998-99”.

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

17.—Schedule 13 to the Principal Act is hereby amended by— (a) the deletion of paragraphs 23, 47 and 63, and (b) the addition of the following paragraphs after paragraph 82: “83. The Office of the Director of Telecommunications Regulation.

Amendment of Chapter 2 (payments to subcontractors in certain industries) of Part 18 of Principal Act.

18.—(1) The Principal Act is hereby amended, in Chapter 2 of Part 18— (a) in section 530(1)— (i) by the insertion of the following definition after the definition of “forestry operations”: “‘income tax month’ means a month beginning on the 6th day of any of the months of April to March in any year;”, (ii) by the substitution of the following for the definition of “qualifying period”: “‘qualifying period’ means the period of 3 years, or such shorter period as the inspector may allow, ending on the 5th day of April in the year preceding the year of assessment which is the first year of assessment of the period, in respect of which a certificate of authorisation is sought together with the period, if any, from the 6th day of April in the said first year of assessment to the date on which the application for the said certificate is received by the Revenue Commissioners;”, and (iii) in the definition of “relevant contract” by the substitution of the following for paragraph (c): “(c) to furnish the contractor's own labour or the labour of others in the carrying out of relevant operations or to arrange for the labour of others to be furnished for the carrying out of such operations,”, and (b) in section 531— (i) by the insertion of the following subsection after subsection (3): “(3A) (a) Within 9 days from the end of an income tax month, a principal or any person who was previously a principal and who has been required to do so by notice in writing from the Revenue Commissioners, shall— (i) make a return to the Collector-General, on the prescribed form, of the amount, if any, of tax which that person was liable under this section to deduct from payments made to uncertified sub-contractors during that income tax month, and (ii) remit to the Collector the amount of the tax, if any, which the person was so liable to deduct. (b) The Collector-General shall furnish the person concerned with a receipt in respect of the payment; such a receipt shall consist of whichever of the following the Collector-General considers appropriate, namely— (i) a separate receipt on the prescribed form in respect of each such payment, or (ii) a receipt on the prescribed form in respect of all such payments that have been made within a period specified in the receipt.”, (ii) by the substitution in the portion of subsection (6) that precedes paragraphs (a) to (h) of that subsection of “assessment (including estimated assessment), estimation, charge, collection and recovery of tax deductible under subsection (1)” for “assessment (including estimated assessment), charge, collection and recovery of tax deductible under subsection (1)”,

(iii) by the substitution of the following for subsection (10): “(10) Subsection (9) shall apply to tax recoverable from a person by virtue of a notice issued under the Income Tax (Construction Contracts) Regulations, 1971 ( S.I. No. 1 of 1971 ), as if the tax were tax which the person was liable under subsection (3A) to remit— (i) where the notice relates to an income tax month or months, for the respective income tax month or months referred to in the notice, and (ii) where the notice relates to a year, the last income tax month of the year to which the notice relates.”, (iv) in paragraph (a) of subsection (11)— (I) by the deletion of “and” after subparagraph (iv), (II) by the substitution, in subparagraph (v), for “qualifying period.” of “qualifying period, and”, and (III) by the addition of the following subparagraph after the subparagraph (v): “(vi) in the case of a person who was resident outside the State at some time during the qualifying period, that the person has throughout the qualifying period complied with all the obligations comparable to those mentioned in subparagraph (iv) imposed by the laws of the country in which that person was resident at any time during the qualifying period.”, (v) by the substitution of the following for subsection (12): “(12) (a) Where a subcontractor to whom a certificate of authorisation has been issued produces it to a principal, the principal shall apply to the Revenue Commissioners for a card (in this Chapter referred to as a ‘relevant payments card’) in respect of the subcontractor. (b) Notwithstanding paragraph (a), where— (i) a subcontractor has notified the Revenue Commissioners of details of the bank account, held in the State in the name of the subcontractor or in the case of a subcontractor who is not resident in the State, held either in the State or in the State in which the subcontractor is resident, into which payments in respect of relevant contracts are to be made (hereafter in this subsection referred to as ‘the nominated bank account’), and (ii) the principal undertakes to make all payments to the subcontractor in question directly to the nominated bank account, the principal may apply to the Revenue Commissioners for a relevant payments card where the subcontractor has provided details of the certificate of authorisation to the principal together with details of the nominated bank account into which payments are to be made by the principal. (c) Notwithstanding paragraphs (a) and (b), a principal may apply for a relevant payments card in respect of a subcontractor even though the subcontractor has not produced or provided details of a certificate of authorisation for the year to which the relevant payments card relates, where—

(i) the principal has been issued with a relevant payments card in relation to that subcontractor for the immediately preceding year, and (ii) the relevant contract between the principal and the subcontractor in relation to which the relevant payments card is required is ongoing at the end of that year. (d) Where on such application the Revenue Commissioners are satisfied that a relevant payments card in respect of the subcontractor ought to be issued to the principal, they shall issue such a card to the principal who, on receiving the card shall, subject to subsection (13), be entitled during the income tax year (or the unexpired portion of the income tax year) to which the relevant payments card relates to make payment without deduction of tax to the subcontractor named on the card but, in the case of an application to which paragraph (b) applies or an application to which paragraph (c) applies where the relevant payments card mentioned in subparagraph (i) of that paragraph was issued following an application made under and in accordance with paragraph (b), any such payments shall be made by the principal directly to the nominated bank account.”, (vi) by the insertion of the following subsection after subsection (17): “(17A) Any person who is aggrieved by the cancellation of a certificate of authorisation by the Revenue Commissioners in accordance with subsection (13) may, by notice in writing to that effect given to the Revenue Commissioners within 30 days from the date of such cancellation, appeal against such cancellation to the Appeal Commissioners but, pending the decision of the Appeal Commissioners in the matter, unless the Revenue Commissioners, on application to them, reinstate the certificate of authorisation pending the making of that decision, the certificate shall remain cancelled.”, and (vii) by the insertion in subsection (18) of “or subsection (17A)” after “subsection (17)”.

Retirment benefits.

19.—(1) The Principal Act is hereby amended— (a) in Chapter 1 of Part 30— (i) by the insertion in section 770, of the following definitions, namely— (I) before the definition of “director” of: “‘approved retirement fund’ has the meaning assigned to it by section 784A; ‘approved minimum retirement fund’ has the meaning assigned to it by section 784C;”, and (II) after the definition of “pension” of: “‘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 three years of the date of— (a) the specified normal retirement date, (b) an earlier retirement date, where applicable, or (c) leaving service, 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 20 per cent of the voting rights in the company providing the benefits or in a company which controls that company;”, and (ii) in section 772— (I) by the substitution in paragraph (f) of subsection (3), of “that, subject to subsection (3A),” for “that”, and (II) by the insertion of the following subsections after subsection (3): “(3A) (a) The Revenue Commissioners shall not approve a retirement benefits scheme for the purposes of this Chapter unless it appears to them that the scheme provides for any individual entitled to a pension under the scheme, being a proprietary director of a company to which the scheme relates, to opt, on or before the date on which that pension would otherwise become payable, for the transfer, on or after that date, to— (i) the individual, or (ii) an approved retirement fund, of an amount equivalent to the amount determined by the formula— A - B where— A is the amount equal to the value of the individual's accrued rights under the scheme exclusive of any lump sum paid in accordance with paragraph (f) of subsection (3), and B is the amount or value of assets which the trustees, administrator or other person charged with the management of the scheme (hereafter in this section referred to as ‘the trustees’) would, if the assumptions in paragraph (b) were made, be required, in accordance with section 784C, to transfer to an approved minimum retirement fund held in the name of the individual or to apply in purchasing an annuity payable to the individual with effect from the date of the exercise of the said option. (b) The assumptions in this paragraph are— (i) that the retirement benefit scheme was an annuity contract approved in accordance with section 784,

(ii) that the trustees of the retirement benefit scheme were a person lawfully carrying on the business in the State of providing annuities on human life with whom the said contract had been made, and (iii) that the individual had opted in accordance with subsection (2A) of section 784. (3B) Where an individual opts in accordance with subsection (3A) then— (a) the provisions of subsection (2B) of section 784 and of sections 784A, 784B, 784C, 784D and 784E shall, with any necessary modifications, apply as if— (i) any reference in those sections to the person lawfully carrying on in the State the business of granting annuities on human life were a reference to the trustees of the retirement benefit scheme, (ii) any reference in those sections to the annuity contract were references to the retirement benefit scheme, and (iii) any reference in those sections to Case IV of Schedule D were a reference to Schedule E, and (b) paragraph (f) of subsection (3) shall apply as if the reference to ‘a lump sum or sums not exceeding in all three-eightieths of the employee's final remuneration for each year of service up to a maximum of 40 years’ were a reference to ‘a lump sum not exceeding 25 per cent of the value of the pension which would otherwise be payable’.”, and (III) by the insertion of the following paragraph after paragraph (b) of subsection (4): “(c) Notwithstanding paragraphs (a) and (b), the Revenue Commissioners shall not approve a scheme unless it appears to them that the scheme complies with the provisions of subsection (3A).”, (b) in Chapter 2 of Part 30— (i) in paragraph (a) of section 783(1), by the insertion of the following definitions before the definition of “director”: “‘approved retirement fund’ has the meaning assigned to it by section 784A; ‘approved minimum retirement fund’ has the meaning assigned to it by section 784C;”, (ii) in section 784— (I) in subsection (1), by the substitution of the following paragraph for paragraph (b): “(b) pays a premium or other consideration under an annuity contract for the time being approved by the Revenue Commissioners as being a contract by which the main benefit secured is, or would, but for the exercise of an option by the individual under subsection (2A), be a life annuity for the individual in his or her old age or under a contract for the time being approved under section 785 (in this Chapter referred to as a ‘qualifying premium’),”, (II) in paragraph (a) of subsection (2)— (A) by the substitution for “Subject to subsection (3),” of “Subject to subsections (2A) and (3) and to section 786,”,

(B) in subparagraph (iii)(II), by the substitution for “70 years” of “75 years”, and (III) by the substitution of the following paragraphs for paragraph (b) of subsection (2): “(b) Notwithstanding paragraph (a)— (i) the contract may provide for the payment to the individual, at the time the annuity commences to be payable or, where the individual opts in accordance with subsection (2A), at the time of the transfer referred to in that subsection, of a lump sum by means of commutation of part of the annuity where the individual elects, at or before the time when the annuity first becomes payable to him or her or before the date of such transfer, to be paid the lump sum, and (ii) the amount payable under subparagraph (i) shall not exceed 25 per cent of the value of the annuity payable or the value of the annuity which would have been payable if the individual had not opted in accordance with subsection (2A). (c) The reference in paragraph (b)(i) to the commutation of part of the annuity shall, in a case where the individual has opted in accordance with subsection (2A), be construed as a reference to the commutation of the annuity which would, but for such election, be payable if the individual opted to have the annuity paid with effect from the date of the transfer referred to in that subsection.”, (IV) by the insertion of the following subsections after subsection (2): “(2A) The Revenue Commissioners shall not approve a contract unless it appears to them that the contract provides for the individual entitled to an annuity under the contract to exercise, on or before the date on which that annuity would otherwise become payable, an option for the transfer by the person with whom the contract is made, on or after that date, to— (a) the individual, or (b) an approved retirement fund, of an amount equivalent to the amount determined by the formula— A - B where— A is the amount equal to the value of the individual's accrued rights under the contract exclusive of any lump sum paid in accordance with paragraph (b) of subsection (2), and B is the amount or value of assets which the person with whom the contract is made is required, in accordance with section 784C, to transfer to an approved minimum retirement fund held in the name of the individual or to apply in purchasing an annuity payable to the individual with effect from the date of the exercise of the said option. (2B) Where an individual opts in accordance with paragraph (a) of subsection (2A), the amount paid to the individual by virtue of that paragraph other than the amount payable by virtue of paragraph (b) of subsection (2) shall be regarded as income of the individual chargeable to income tax under Case IV of Schedule D for the year of assessment in which the payment is made.”,

and (V) in subsection (3), by the deletion of paragraph (d), (iii) by the insertion of the following sections after section 784: “Approved retirement fund.

784A.—(1) (a) In this section— ‘approved retirement fund’ means a fund which is managed by a qualifying fund manager and which complies with the conditions of section 784B; ‘qualifying fund manager’ means— (a) a person who is a holder of a licence granted under section 9 of the Central Bank Act, 1971 , (b) a building society within the meaning of section 256, (c) a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989 , (d) ACC Bank plc, (e) ICC Bank plc, (f) ICC Investment Bank Limited, (g) the Post Office Savings Bank, (h) a credit union within the meaning of the Credit Union Act, 1997 , (i) a collective investment undertaking within the meaning of section 172A, (j) a person lawfully carrying on in the State the business of granting annuities on human life, (k) a person— (i) which is an authorised member firm of the Irish Stock Exchange, within the meaning of the Stock Exchange Act, 1995 , or a member firm (which carries on a trade in the State through a branch or agency) of a stock exchange of any other Member State of the European Communities, and (ii) which has sent to the Revenue Commissioners a notification of its name and address and of its intention to act as a qualifying fund manager, or (l) such other person as the Minister for Finance may by order approve of for the purposes of this section; ‘tax reference number’, in relation to an individual, has the meaning assigned to it by section 885 in relation to a specified person within the meaning of that section. (b) For the purposes of this Chapter, references to an approved retirement fund shall be construed as a reference to assets in an approved retirement fund which are managed for an individual by a qualifying fund manager and which are beneficially owned by the individual.

Conditions relating to an approved retirement fund.

784B.—(1) The conditions of this section are— (a) an approved retirement fund shall be held by a qualifying fund manager in the name of the individual who is beneficially entitled to the assets in the fund, (b) assets held in an approved retirement fund shall consist of and only of one or more of— (i) assets transferred to the fund by virtue of an option exercised by the individual in accordance with section 784(2A), (ii) assets which were previously held in another approved retirement fund held in the name of the individual or the individual's deceased spouse, and (iii) assets derived from such assets as are referred to in subparagraphs (i) and (ii), (c) the individual referred to in paragraph (a) shall, on the opening of an approved retirement fund, make a declaration of the kind mentioned in paragraph (d) to the qualifying fund manager, and (d) the declaration referred to in paragraph (c) shall be a declaration, in writing, to the qualifying fund manager which— (i) is made by the individual who is beneficially entitled to the assets in the approved retirement fund, (ii) is made in such form as may be prescribed or authorised by the Revenue Commissioners, (iii) contains the full name, address and tax reference number of the individual referred to in subparagraph (i), (iv) declares that the assets included in the fund consist only of assets referred to in paragraph (b) to which the individual was beneficially entitled, and (v) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Act.

Approved minimum retirement fund.

784C.—(1) In this section, ‘an approved minimum retirement fund’ means a fund managed by a qualifying fund manager (within the meaning of section 784A) and which complies with the conditions of section 784D.

Conditions relating to an approved minimum retirement fund.

784D.—(1) The conditions of this section are— (a) an approved minimum retirement fund shall be held in the name of the individual who is beneficially entitled to the assets in the fund, (b) assets held in an approved minimum retirement fund shall consist of one or more of the following— (i) assets transferred to the fund by virtue of an option exercised by the individual in accordance with section 784(2A), (ii) assets which were previously held in another approved minimum retirement fund held in the name of the individual, and (iii) assets derived from such assets as are referred to in subparagraphs (i) and (ii), (c) the individual referred to in paragraph (a) shall make a declaration of the kind mentioned in paragraph (d) to the qualifying fund manager, (d) the declaration referred to in paragraph (c) shall be a declaration, in writing, to the qualifying fund manager which— (i) is made by the individual who is beneficially entitled to the assets in the approved minimum retirement fund, (ii) is made in such form as may be prescribed or authorised by the Revenue Commissioners, (iii) contains the full name, address and tax reference number of the individual referred to in subparagraph (i), (iv) declares that assets included in the fund consist only of assets referred to in paragraph (b) to which the individual was beneficially entitled in accordance with section 784(2A), and (v) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Act.

Returns, and payment of tax, by qualifying fund managers.

784E.—(1) A qualifying fund manager shall, within 14 days of the end of the month in which a distribution is made out of the residue of an approved retirement fund, make a return to the Collector-General which shall contain details of— (a) the name and address of the person in whose name the approved retirement fund is or was held, (b) the tax reference number of that person, (c) the name and address of the person to whom the distribution was made, (d) the amount of the distribution, and (e) the tax which the qualifying fund manager is required to account for in relation to that distribution (hereafter in this section referred to as ‘the appropriate tax’).

“(8) Subject to this section, the amount which may be deducted or set off in any year of assessment (whether in respect of one or more qualifying premiums and whether or not including premiums in respect of a contract approved under section 785) shall not be more than— (a) in the case of an individual who at any time during the year of assessment was of the age of 30 years or over but had not attained the age of 40 years, 20 per cent, (b) in the case of an individual who at any time during the year of assessment was of the age of 40 years or over but had not attained the age of 50 years, 25 per cent, (c) in the case of an individual who at any time during the year of assessment was of the age of 50 years or over or who for the year of assessment was a specified individual, 30 per cent, and (d) in any other case, 15 per cent, of the individual's net relevant earnings for that year, and the amount to be deducted shall to the greatest extent possible include qualifying premiums in respect of contracts approved under section 785. (8A) For the purposes of this section, ‘specified individual’, in relation to a year of assessment, means an individual whose relevant earnings for the year of assessment were derived wholly or mainly from an occupation or profession specified in Schedule 23A. (8B) The Minister for Finance may, after consultation with the Minister for Tourism, Sport and Recreation, by regulations extend or restrict the meaning of specified individual by adding or deleting one or more occupations or professions to or from, as the case may be, the list of occupations and professions specified in Schedule 23A. (8C) Where regulations are proposed to be made under subsection (8B), a draft of the regulations shall be laid before Dáil Éireann and the regulations shall not be made until a resolution approving of the draft has been passed by Dáil Éireann.”, and (c) by the insertion of the following Schedule after Schedule 23: “Section 787.

SCHEDULE 23A Specified Occupations and Professions Athlete Badminton Player Boxer Cyclist Footballer Golfer Jockey Motor Racing Driver Rugby Player Squash Player Swimmer Tennis Player”.

Purchased life annuities.

20.—(1) Section 788(2) of the Principal Act is hereby amended— (a) in paragraph (d), by the deletion of “or” after “section 787,”, (b) in paragraph (e), by the substitution of “capital), or” for “capital).”, and (c) by the insertion after paragraph (e) of the following paragraph: “(f) any annuity where the whole or part of the consideration for the grant of the annuity consisted of assets which, at the time of application of the said assets for the purchase of the annuity, were assets in an approved retirement fund, within the meaning of section 784A, or in an approved minimum retirement fund, within the meaning of section 784C.”.

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

21.—(1) Section 823 of the Principal Act is hereby amended— (a) in subsection (1), by the substitution of the following for the definition of “the specified amount”: “‘the specified amount’ in relation to an office or employment means an amount determined by the formula— D x E 365 where— D is the number of qualifying days in relation to the office or employment in the year of assessment concerned, and E is all the income, profits or gains from any office, employment or pension whether chargeable under Schedule D or E (including income from offices or employments the duties of which are performed in the State) of an individual in that year after deducting any contribution or qualifying premium in respect of which there is provision for a deduction under section 774(7) or 787 but excluding— (a) any expense to which section 118 applies, (b) any amount treated as emoluments of an employment under section 121(2)(b)(ii) by virtue of a car being made available by reason of the employment, (c) any sum treated for the purposes of section 112 as a perquisite of an office or employment by virtue of section 122, (d) any payment to which section 123 applies, (e) any sum deemed to be profits or gains arising or accruing from an office or employment by virtue of section 127(2), or (f) any gain to which section 128 applies.”, and (b) in subsection (3), by the insertion of the following after “the specified amount”: “in relation to that office or employment or the amount of the income, profits or gains whichever is the lesser”.

Amendment of section 869 (delivery, service and evidence of notices and forms) of Principal Act.

22.— Section 869 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (3): “(3) Prima facie evidence of any notice given or served under the Tax Acts or the Capital Gains Tax Acts by the Revenue Commissioners or an inspector or other officer of the Revenue Commissioners may be given in any proceedings by the production of a document purporting— (a) to be a copy of the notice, or (b) if the details specified in the notice are contained in an electronic, photographic or other record maintained by the Revenue Commissioners, to reproduce those details in so far as they relate to the said notice, and it shall not be necessary to prove the official positions or position of the persons or person by whom the notice purports to be given or served or, where it is signed, the signatures or signature or that the persons or person signing and giving or serving it were or was authorised to do so.”.

Amendment of section 961 (issue of demand notes and receipts) of Principal Act.

23.— Section 961 of the Principal Act is hereby amended, as on and from the 6th day of April, 1999, by the substitution of the following subsection for subsection (2): “(2) On payment of income tax, the Collector-General shall furnish the person concerned with a receipt in respect of that payment; such a receipt shall consist of whichever of the following the Collector-General considers appropriate, namely— (a) a separate receipt on the prescribed form in respect of each such payment, or (b) a receipt on the prescribed form in respect of all such payments that have been made within a period specified in the receipt.”.

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

24.—Chapter 4 of Part 42 of the Principal Act is hereby amended, as on and from the 6th day of April, 1999, by the insertion of the following section after section 990: “Generation of estimates by electronic, photographic or other process.

990A.—For the purposes of this Chapter— (a) where the inspector, any officer of the Revenue Commissioners nominated by them for the purposes of section 989 or 990 (in this section referred to as ‘the nominated officer’) or any other officer of the Revenue Commissioners acting with the knowledge of the inspector or the nominated officer causes, for the purposes of section 989 or 990, to be issued, manually or by any electronic, photographic or other process, and to be served, a notice bearing the name of the inspector or the nominated officer, the estimate to which that notice relates shall be deemed— (i) if that notice was issued for the purposes of section 989, to have been made by the nominated officer, and (ii) if that notice was issued for the purposes of section 990, to have been made by the inspector or the nominated officer, as the case may be, to the best of his or her opinion, and (b) the provisions of section 928 shall, subject to any necessary modifications, apply in relation to estimates made in accordance with the provisions of section 990 as they apply in relation to assessments to income tax.”.

Amendment of section 987 (penalties for breach of regulations) of Principal Act.

25.—Section 987 of the Principal Act is hereby amended— (a) by the substitution of the following subsection for subsection (1)— “(1) Where any person does not comply with any provision of regulation under this Chapter requiring that person to send any return, statement, notification or certificate, other than the end of year return required under Regulation 35 of the Income Tax (Employments) Regulations, 1960 ( S.I. No. 28 of 1960 ), or to remit income tax to the Collector-General or fails to make any deduction or repayment in accordance with any regulation made pursuant to section 986(1)(g), that person shall be liable to a penalty of £1,200.”, (b) by the insertion after subsection (1) of the following subsection: “(1A) Where any person fails to send an end of year return to the Collector-General in accordance with Regulation 35 of the Income Tax (Employments) Regulations, 1960 ( S.I. No. 28 of 1960 ), that person shall be liable to a penalty of £500 for each month or part of a month during which the said return remains outstanding, subject to a maximum penalty of £2,000.”, and (c) in subsection (2) by the substitution of “subsection (1) or (1A)” for “subsection (1)”.

Relief for fees paid to publicly funded colleges in the European Union for full-time third level education.

26.—The Principal Act is hereby amended— (a) in Chapter 1 of Part 15, by the insertion in Part 2 of the Table to section 458 of “Section 474A” after “Section 474”, (b) in Chapter 2 of Part 15, by the insertion of the following section after section 474: “Relief for fees paid to publicly funded colleges in the European Union for full-time third level education.

474A.—(1) In this section— ‘academic year’, in relation to an approved course, means a year of study commencing on a date not earlier than the 1st day of August in a year of assessment; ‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year; ‘dependant’, in relation to an individual, means a spouse or child of the individual or a person in respect of whom the individual is or was the legal guardian; ‘the Minister’ means the Minister for Education and Science; ‘qualifying college’ means any university or similar institution of higher education in a Member State of the European Union (other than the State) which is maintained or assisted by recurrent grants from public funds of that or any other Member State of the European Union (including the State); ‘qualifying course’ means a full-time undergraduate course of study in a qualifying college which is of at least 2 academic years' duration, other than a course of study in medicine, dentistry, veterinary medicine or in teacher training; ‘qualifying fees’, in relation to a qualifying course and an academic year, means so much of the amount of fees chargeable in respect of tuition to be provided in relation to that course in that year as is equal to the amount of fees determined by the Minister, with the consent of the Minister for Finance, to be the qualifying fees for the purposes of this section in relation to the class of qualifying course specified in the determination to which the particular course concerned belongs.

Chapter 3

Dividend withholding tax Dividend withholding tax.

27.—The Principal Act is hereby amended— (a) in Part 6, by the insertion of the following Chapter after Chapter 8: “Chapter 8A Dividend withholding tax Interpretation.

172A.—(1) (a) In this Chapter and in Schedule 2A— ‘American depositary receipt’ has the same meaning as in section 207 of the Finance Act, 1992 ; ‘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 1990, or under the law of the territory in which the company is incorporated and which corresponds to those Acts; ‘authorised withholding agent’, in relation to a relevant distribution, has the meaning assigned to it by section 172G; ‘collective investment undertaking’ means— (i) a collective investment undertaking within the meaning of section 734, or (ii) an undertaking for collective investment within the meaning of section 738, not being an offshore fund within the meaning of section 743; ‘dividend withholding tax’, in relation to a relevant distribution, means a sum representing income tax on the amount of the relevant distribution at the standard rate in force at the time the relevant distribution is made; ‘excluded person’, in relation to a relevant distribution, has the meaning assigned to it by section 172C(2); ‘intermediary’ means a person who carries on a trade which consists of or includes— (i) the receipt of relevant distribution from a company or companies resident in the State, or (ii) the receipt of amounts or other assets representing such distributions from another intermediary or intermediaries, on behalf of other persons; ‘non-liable person’, in relation to a relevant distribution, means the person beneficially entitled to the relevant distribution, being an excluded person or a qualifying non-resident person; ‘pension scheme’ means an exempt approved scheme within the meaning of section 774 or a retirement annuity contract or a trust scheme to which section 784 or 785 applies; ‘qualifying employee share ownership trust’ means an employee share ownership trust which the Revenue Commissioners have approved of as a qualifying employee share ownership trust in accordance with Schedule 12 and which approval has not been withdrawn; ‘qualifying intermediary’, in relation to a relevant distribution, has the meaning assigned to it by section 172E; ‘qualifying non-resident person’, in relation to a relevant distribution, has the meaning assigned to it by section 172D(3); ‘relevant distribution’ means— (i) a distribution within the meaning of paragraph 1 of Schedule F in section 20(1), other than such a distribution made to a Minister of the Government in his or her capacity as such Minister, and

(ii) any amount assessable and chargeable to tax under Case IV of Schedule D by virtue of section 816; ‘relevant person’, in relation to a relevant distribution, means— (i) where the relevant distribution is made by a company directly to the person beneficially entitled to the distribution, the company making the relevant distribution, and (ii) where the relevant distribution is not made by the company directly to the person beneficially entitled to the relevant distribution but is made to that person through one or more than one qualifying intermediary, the qualifying intermediary from whom the relevant distribution, or an amount or other asset representing the relevant distribution, is receivable by the person beneficially entitled to the distribution; ‘relevant territory’ means— (i) a Member State of the European Communities other than the State, or (ii) not being such a Member State, a territory with the government of which arrangements having the force of law by virtue of section 826 have been made; ‘specified person’, in relation to a relevant distribution, means the person to whom the relevant distribution is made, whether or not that person is beneficially entitled to the relevant distribution; ‘tax’, in relation to a relevant territory, means any tax imposed in that territory which corresponds to income tax or corporation tax in the State; ‘tax reference number’ has the same meaning as in section 885. (b) In this Chapter and in Schedule 2A, references to the making of a relevant distribution by a company, or to a relevant distribution to be made by a company, or to the receipt of a relevant distribution from a company do not include, respectively, references to the making of a relevant distribution by a collective investment undertaking, or to a relevant distribution to be made by a collective investment undertaking, or to the receipt of a relevant distribution from a collective investment undertaking.

Dividend withholding tax on relevant distributions.

172B.—(1) Except where otherwise provided by this Chapter, where, on or after the 6th day of April, 1999, a company resident in the State makes a relevant distribution to a specified person— (a) the company shall deduct out of the amount of the relevant distribution dividend withholding tax in relation to the relevant distribution, (b) the specified person shall allow such deduction on the receipt of the residue of the relevant distribution, and (c) the company shall be acquitted and discharged of so much money as is represented by the deduction as if that amount of money had actually been paid to the specified person.

Exemption from dividend withholding tax for certain persons.

172C.—(1) Section 172B shall not apply where a company resident in the State makes a relevant distribution to an excluded person.