(I) the amount of expenditure incurred on the know-how by the person referred to in subparagraph (ii) shall be allowed as a deduction against profits of the trade, carried on by that person, in which the know-how is used (in this subsection referred to as a ‘relevant trade’) but not against any other income or profits of whatever description, (II) no amount of any royalty or other sum paid by the person referred to in subparagraph (i), or by any person connected (within the meaning of section 10) with that person, for the know-how acquired by the person referred to in subparagraph (ii) shall be allowed to be deducted in computing the profits of any description, or to be treated as a charge on income, of the person making such payment, and (III) no amount shall be allowed to be deducted under this section where, at any time, the trade or part of the trade referred to in subparagraph (i) is transferred to the person referred to in subparagraph (ii). (c) Where as respects any chargeable period of a person carrying on a relevant trade, the amount by which a deduction available to be made under paragraph (b)(I) exceeds the profits of the relevant trade but for that deduction, the excess shall be carried forward and treated as an amount deductible under paragraph (b)(I) for succeeding chargeable periods and (so long as the person continues to carry on the trade) its profits from the trade in any succeeding chargeable period shall then be treated as reduced by the amount of the excess, or by so much of that excess as cannot be relieved against profits of the trade of an earlier chargeable period.”, and (b) by inserting the following after subsection (5): “(6) Where any relief has been claimed under this section which is subsequently found not to have been due, that relief shall be withdrawn by making an assessment to tax, under Case IV of Schedule D, for the chargeable period or chargeable periods in which relief was claimed and, notwithstanding anything in the Tax Acts, such an assessment may be made at any time.”.
\nCorporation Tax Relief from tax for certain start-up companies.
\n31.— (1) The Principal Act is amended by inserting the following after section 486B— “486C.— (1) (a) In this section— ‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993; ‘ EEA state ’ means a State, other than the State, which is a Contracting Party to the EEA Agreement; ‘ excepted trade ’ has the same meaning as in section 21A; ‘ net chargeable gains ’ means chargeable gains less allowable losses; ‘ new company ’ means a company incorporated in the State or in an EEA State other than the State on or after 14 October 2008; ‘qualifying assets’, in relation to a qualifying trade, means relevant assets of the qualifying trade which are disposed of in the relevant period in relation to that trade; ‘qualifying trade’ has the meaning assigned to it in subsection (2); ‘relevant asset’, in relation to a qualifying trade means, an asset (including goodwill but not including shares or securities or other assets held as investments) which is, or is an interest in, an asset used for the purposes of that trade other than an asset on the disposal of which no gain accruing would be a chargeable gain or an asset the consideration for the acquisition of which is determined by section 617 or section 631; ‘ relevant corporation tax ’, in relation to an accounting period, means the corporation tax which, apart from this section, sections 239, 241, 440, 441, 644B and 827 and paragraph 18 of Schedule 32, would be chargeable for the accounting period exclusive of— (i) the corporation tax chargeable on the profits of the company attributable to chargeable gains for that period, and (ii) the corporation tax chargeable on the part of the company’s profits which are charged to tax at the rate specified in section 21A; ‘ relevant period ’, in relation to a qualifying trade, means the period beginning on the day the company commences to carry on the qualifying trade and ending 3 years after that date; ‘ total corporation tax ’, in relation to an accounting period, means the corporation tax which, apart from this section, sections 239 and 241 would be chargeable for the accounting period; ‘ trade ’ means a trade the profits or gains of which are charged to tax under Case I of Schedule D. (b) For the purposes of this section, the profits of a company attributable to chargeable gains for an accounting period shall be taken to be the amount of its profits for that period on which corporation tax falls finally to be borne exclusive of the part of the profits attributable to income. That part shall be taken to be the amount brought into the company’s profits for that period for the purposes of corporation tax in respect of income after any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description.
\n3 × (T — M) × A + B T where— T is the total corporation tax payable by the company for that accounting period, M is the lower relevant maximum amount, A is the corporation tax payable by the company for the accounting period so far as is referable to income from the qualifying trade for that accounting period, and B is the corporation tax payable by the company for that accounting period so far as is referable to chargeable gains on the disposal of qualifying assets of the qualifying trade. (c) For the purposes of this subsection, the corporation tax referable to income from a qualifying trade in an accounting period is such an amount as bears to the relevant corporation tax the same proportion as the income from the qualifying trade bears to the total income brought into charge to corporation tax for that accounting period. (d) For the purposes of this subsection, the corporation tax referable to chargeable gains on the disposal of qualifying assets is such amount as bears to the corporation tax payable on the profits of the company attributable to the chargeable gains for the accounting period the same proportion as the net chargeable gains on qualifying assets disposed of in the accounting period bears to net chargeable gains on all chargeable assets disposed of in the accounting period.
\nAmendment of section 448 (relief from corporation tax) of Principal Act.
\n32.— (1) Section 448 of the Principal Act is amended— (a) by substituting the following for paragraph (b) of subsection (3): “(b) then, deducting from the relevant sum— (i) the amount of any charges on income paid for the purposes of the sale of goods in the relevant accounting period, (ii) the amount of any loss from the sale of goods incurred by the company in the relevant accounting period, and (iii) the amount of any excess of charges on income paid for the purpose of the sale of goods or the amount of any loss from the sale of goods, incurred by a surrendering company and allowed under section 420A, allowed against income of the trade in the relevant accounting period.”, and (b) by substituting the following for paragraph (a) of subsection (5B) (inserted by the Finance Act 2008 ): “(a) by any amounts in respect of— (i) any charges on income paid for the purposes of the sale of goods in the relevant accounting period, (ii) any loss from the sale of goods incurred by the company in the relevant accounting period, and (iii) any excess of charges on income paid for the purpose of the sale of goods or the amount of any loss from the sale of goods, incurred by a surrendering company and allowed under section 420A, allowed against income of the trade in the relevant accounting period, and”.
\nRelevant territory.
\n33.— The Principal Act is amended— (a) in the definition of “ relevant territory ” in section 21B(1)(a)— (i) in subparagraph (i) by deleting “or” and in subparagraph (ii) by substituting “have been made, or” for “have been made;”, and (ii) by inserting the following after subparagraph (ii): “(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”, (b) in the definition of “ relevant territory” in section 153(1)— (i) in paragraph (a) by deleting “or” and in paragraph (b) by substituting “have been made, or” for “have been made;”, and (ii) by inserting the following after paragraph (b): “(c) not being a territory referred to in paragraph (a) or (b), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”, (c) in the definition of “ relevant territory ” in section 172A(1)(a)— (i) in subparagraph (i) by deleting “or” and in subparagraph (ii) by substituting “have been made, or” for “have been made;”, and (ii) by inserting the following after subparagraph (ii): “(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”, (d) in the definition of “ relevant territory ” in section 198(1)(a)— (i) in subparagraph (i) by deleting “or” and in subparagraph (ii) by substituting “have been made, or” for “have been made;”, and (ii) by inserting the following after subparagraph (ii): “(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”, (e) in the definition of “ relevant territory ” in section 246(1)— (i) in paragraph (a) by deleting “or” and in paragraph (b) by substituting “have been made, or” for “have been made;”, and (ii) by inserting the following after paragraph (b): “(c) not being a territory referred to in paragraph (a) or (b), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”, (f) in section 452— (i) by inserting in subsection (1)(a) the following after “section 826(1)” in the definition of “ arrangements ”:
\n“or arrangements made with the government of a territory which on completion of the procedures set out in section 826(1) will have the force of law”, and (ii) by inserting in subsection (1)(b)(i) “and have effect in accordance with the provisions of those arrangements” after “have been made”, (g) in the definition of “ relevant territory ” in section 626B(1)(a)— (i) in subparagraph (i) by deleting “or” and in subparagraph (ii) by substituting “have been made, or” for “have been made;”, and (ii) by inserting the following after subparagraph (ii): “(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;”, and (h) in paragraph 9F of Schedule 24 by inserting the following after clause (b) of subparagraph (1): “(c) (i) In this clause ‘arrangements’ means arrangements made with the government of a territory which on completion of the procedures set out in section 826(1) will have the force of law. (ii) A territory not otherwise within subparagraph (1)(b)(i)(II) shall for the purposes of this paragraph be so treated if it is a territory with the government of which arrangements have been made.”.
\nAmendment of section 766 (tax credit for research and development expenditure) of Principal Act.
\n34.— (1) The Principal Act is amended in section 766— (a) in subsection (1)(a) by substituting the following for the definition of “ threshold amount ”: “ ‘threshold amount’, in relation to a relevant period of a group of companies, means the aggregate of the amounts of expenditure on research and development incurred in the period of one year ending on a date in the year 2003, which corresponds with the date on which the relevant period ends by all companies which are members of the group in the threshold period, in relation to the relevant period concerned: but expenditure incurred by a company which is a member of the group for a part of the threshold period shall only be included in the threshold amount if the expenditure is incurred at a time when the company is a member of the group;”, (b) in subsection (2) by substituting “25 per cent” for “20 per cent”, (c) in subsection (4) by deleting “Where” and substituting “Subject to subsections (4A) and (4B), where”, (d) by inserting the following after subsection (4): “(4A) (a) Where as respects any accounting period of a company the amount by which the company is entitled to reduce corporation tax of the accounting period exceeds the corporation tax of the company for the accounting period, the company may make a claim requiring the corporation tax of the preceding accounting period ending within the time specified in paragraph (b) to be reduced by the amount of the excess. (b) The time referred to in paragraph (a) shall be a time immediately preceding the accounting period first mentioned in that paragraph, equal in length to that accounting period, but the amount of the reduction which may be made under paragraph (a) in the corporation tax of an accounting period falling partly before that time shall not exceed the corporation tax referable to the part of those profits proportionate to the part of the period falling within that time. (4B) (a) Where a claim under subsection (4A)(a) has been made, and the amount of the excess referred to in subsection (4A)(a) exceeds the corporation tax of the preceding accounting periods ending within the time specified in subsection (4A)(b) or where no corporation tax arises for those preceding accounting periods, the company may make a claim to have any excess remaining paid to the company by the Revenue Commissioners. (b) Subject to section 766B, on receipt of a claim the Revenue Commissioners shall pay any excess remaining to the company, in 3 instalments— (i) the first instalment shall be paid by the Revenue Commissioners not earlier than the date provided for in paragraph (b) of the definition of ‘specified return date for the chargeable period’ as defined in section 950(1), for the accounting period in which the expenditure on research and development was incurred and shall equal 33 per cent of the excess remaining,
\n(ii) in respect of the second instalment— (I) the excess remaining, as reduced by the first instalment under subparagraph (i), shall be first treated as an amount by which the corporation tax of the accounting period next succeeding the accounting period in which the expenditure giving rise to the claim under this subsection was incurred, is reduced in accordance with subsection (4), and (II) the second instalment shall be paid by the Revenue Commissioners not earlier than 12 months immediately following the date referred to in subparagraph (i) and shall equal 50 per cent of the amount by which the excess remaining is reduced by the aggregate of the first instalment under subparagraph (i) and the amount treated as reducing the corporation tax of an accounting period under clause (I), and (iii) in respect of the last instalment— (I) the excess remaining, as reduced by the first and second instalments and by the amount treated as reducing the corporation tax of an accounting period under clause (I) of subparagraph (ii), shall be first treated as an amount by which the corporation tax of the accounting period next succeeding the accounting period referred to in clause (I) of subparagraph (ii) is reduced in accordance with subsection (4), and (II) the last instalment shall be paid by the Revenue Commissioners not earlier than 24 months immediately following the date referred to in subparagraph (i) and shall equal the amount by which the excess remaining is reduced by the first and second instalments and by the total of the amounts by which the corporation tax of an accounting period is reduced under clause (I) of subparagraph (ii) and under clause (I) of this subparagraph.”, (e) by substituting for subsection (5): “(5) Any claim under this section shall be made within 12 months from the end of the accounting period in which the expenditure on research and development, giving rise to the claim, is incurred.”, and (f) by inserting the following after subsection (7): “(7A) Any amount payable by virtue of subsection (4B) shall not be income of the company or another company for any tax purpose. (7B) Any amount payable by the Revenue Commissioners to the company or another company by virtue of subsection (4B) shall be deemed to be an overpayment of corporation tax, for the purposes only of section 1006A (2).”.
\nAmendment of section 766A (tax credit on expenditure on buildings or structures used for research and development) of Principal Act.
\n35.— (1) The Principal Act is amended in section 766A— (a) in subsection (1)(a)— (i) by inserting the following definition before the definition of “ refurbishment ” : “ ‘ qualifying building ’ means a building or structure, which is to be used for the purpose of the carrying on by the company of research and development activities in a relevant Member State, where, for the specified relevant period in relation to that building or structure, the proportion of use of the building or structure attributable to the research and development activities carried on by the company, as calculated in accordance with subsection (6), is not less than 35 per cent;”, (ii) in the definition of “ relevant expenditure ” by substituting “qualifying building” for “building or structure which is to be used wholly and exclusively for the purpose of the carrying on by the company of research and development activities in a relevant Member State”, and (iii) by inserting the following definitions after the definition of “relevant expenditure”: “ ‘ specified relevant expenditure ’ means the same proportion of relevant expenditure as the research and development activities carried on in the qualifying building by the company for the specified relevant period bears to the total of all activities carried on by the company in that building for that period; ‘ specified relevant period ’ means— (i) in the case of the construction of a qualifying building, the period of 4 years, commencing with the date on which the building or structure is first brought into use for the purposes of a trade, (ii) in the case of the refurbishment of a qualifying building, the period of 4 years, commencing with the date on which the refurbishment is completed or, such earlier period of 4 years, as the company may elect, beginning not earlier than the date on which the refurbishment commences;”, (b) by substituting for subsection (2): “(2) Where in an accounting period a qualified company incurs relevant expenditure, the corporation tax of the company for that accounting period shall be reduced by an amount equal to 25 per cent of the specified relevant expenditure.”, (c) by substituting for subsection (3): “(3) Where— (a) in an accounting period a company incurs relevant expenditure on a building or structure, (b) in relation to that expenditure the corporation tax of the company or another company is reduced under subsection (2) or (4A), or a payment has been made to the company or another company by the Revenue Commissioners by virtue of subsection (4B), and
\n(c) at any time in the period of 10 years commencing at the beginning of that accounting period the building or structure is sold or ceases to be used by the company for the purpose of research and development activities or for the purpose of the same trade that was carried on by the company at the beginning of the specified relevant period, in connection with which the research and development activities were carried on, then the company— (i) and in relation to that expenditure, another company, shall not be entitled to reduce corporation tax under subsection (2) for any accounting period ending after the time specified in paragraph (c), and (ii) shall be charged to tax under Case IV of Schedule D for the accounting period in which the building or structure is sold or ceases to be used for the purpose of research and development activities or for the purpose of the trade, in an amount equal to 4 times the aggregate amount by which, in respect of the company or in relation to that expenditure, another company, the corporation tax payable is reduced under subsections (2), (4) and (4A), and payments are made under subsection (4B).”, (d) in subsection (4)(a) by inserting “and subsections (4A) and (4B),” after “(c)”, (e) by inserting the following after subsection (4): “(4A) (a) Where as respects any accounting period of a company the amount by which the company is entitled to reduce corporation tax of the accounting period exceeds the corporation tax of the company for the accounting period, the company may make a claim requiring the corporation tax of the preceding accounting periods ending within the time specified in paragraph (b) to be reduced by the amount of the excess. (b) The time referred to in paragraph (a) shall be a time immediately preceding the accounting period first mentioned in that paragraph, equal in length to that accounting period, but the amount of the reduction which may be made under that paragraph in the corporation tax of an accounting period falling partly before that time shall not exceed the corporation tax referable to the part of those profits proportionate to the part of the period falling within that time. (4B) (a) Where a claim under subsection (4A)(a) has been made, and the amount of the excess referred to in subsection (4A)(a) exceeds the corporation tax of the preceding accounting periods ending within the time specified in subsection (4A)(b) or where no corporation tax arises for those preceding accounting periods, the company may make a claim to have any excess remaining paid to the company by the Revenue Commissioners.
\n(b) Subject to section 766B, on receipt of a claim the Revenue Commissioners shall pay any excess remaining to the company, in 3 instalments— (i) the first instalment shall be paid by the Revenue Commissioners not earlier than the date provided for in paragraph (b) of the definition of ‘specified return date for the chargeable period’ as defined in section 950(1), for the accounting period in which the expenditure on research and development was incurred and shall equal 33 per cent of the excess remaining, (ii) in respect of the second instalment— (I) the excess remaining, as reduced by the first instalment under subparagraph (i), shall be first treated as an amount by which the corporation tax of the accounting period next succeeding the accounting period in which the expenditure giving rise to the claim under this subsection was incurred, is reduced in accordance with subsection (4), and (II) the second instalment shall be paid by the Revenue Commissioners not earlier than 12 months immediately following the date referred to in sub- subparagraph (i) and shall equal 50 per cent of the amount by which the excess remaining is reduced by the aggregate of the first instalment under subparagraph (i) and the amount treated as reducing the corporation tax of an accounting period under clause (I), and (iii) in respect of the last instalment— (I) the excess remaining, as reduced by the first and second instalments and by the amount treated as reducing the corporation tax of an accounting period under clause (I) of subparagraph (ii), shall be first treated as an amount by which the corporation tax of the accounting period next succeeding the accounting period referred to in clause (I) of subparagraph (ii) is reduced in accordance with subsection (4), and (II) the last instalment shall be paid by the Revenue Commissioners not earlier than 24 months immediately following the date referred to in subparagraph (i) and shall equal the amount by which the excess remaining is reduced by the first and second instalments and by the total of the amounts by which the corporation tax of an accounting period is reduced under clause (I) of subparagraph (ii) and under clause (I) of this subparagraph.”, (f) by substituting for subsection (5): “(5) Any claim under this section shall be made within 12 months from the end of the accounting period in which the relevant expenditure, giving rise to the claim, is incurred.”, and (g) by inserting the following after subsection (5): “(6) (a) Where expenditure is incurred by a company on a building or structure and the building or structure will not be used by the company wholly and exclusively for the purposes of research and development, the proportion of the use of the building or the amount of the expenditure, attributable to research and development shall be such portion of the use of the building or the expenditure as appears to the inspector (or on appeal the Appeal Commissioners) to be just and reasonable.
\n(b) Where, at any time, any apportionment referred to in paragraph (a), or a further apportionment made under this paragraph, ceases to be just and reasonable, then— (i) such further apportionment shall be made at that time as appears to the inspector (or on appeal the Appeal Commissioners) to be just and reasonable, (ii) any such further apportionment shall supersede any earlier apportionment, and (iii) any such adjustments, assessments or repayments of tax shall be made as are necessary to give effect to any apportionment under this subsection.
\nLimitation of tax credits to be paid under section 766 or 766A of Principal Act.
\n36.— The Principal Act is amended in Part 29 by inserting the following after section 766A: “Limitation of tax credits to be paid under section 766 or 766A.
\n766B.— (1) In this section ‘ payroll liabilities ’ means— (a) the amount of income tax which the company is required, by or under Chapter 4 of Part 42, to remit to the Collector-General for that period in respect of emoluments, as defined in section 983, paid to, or on account of, all employees and directors, (b) the amount of Pay Related Social Insurance Contributions in respect of the reckonable earnings and reckonable emoluments of all directors and employees which the company is required to remit to the Collector-General for that period by or under the Social Welfare Acts, and (c) any other levies the company is required to remit to the Collector-General, for that period, in respect of directors and employees.
\nAcceleration of wear and tear allowances for certain energy-efficient equipment.
\n37.— (1) The Principal Act is amended— (a) in section 285A by inserting the following after subsection (8): “(8A) (a) Notwithstanding Part 11C, where an allowance is increased under this section in respect of expenditure incurred in a chargeable period on the provision of any vehicle (being a vehicle to which subsection (1) of section 380K relates) in relation to the class of technology described in column (1) of the Table as ‘Electric and Alternative Fuel Vehicles’, then subsection (2) shall apply as if the reference in paragraph (ad) of section 284(2) to the actual cost were a reference to the lower of the actual cost of the vehicle or the specified amount referred to in section 380K(4). (b) Subsection (2) shall not apply where an allowance in respect of expenditure incurred on the provision of a vehicle referred to in paragraph (a) is made under section 284(2) as applied by section 380L.”, (b) in section 380K(1) by inserting “, but this Part shall not apply where an allowance for a vehicle is increased under section 285A” after “so used”, and (c) by substituting the following for Schedule 4A (inserted by the Finance Act 2008 ): “SCHEDULE 4A TABLE (Class of Technology) (Description) (Minimum Amount)
\n(1)
\n(2)
\nLighting Lighting units, comprising fittings, lamps, and associated control gear, that meet specified efficiency criteria, or lighting control systems designed to improve the efficiency of lighting units. Includes occupancy sensors and high efficiency signs. €3,000 Building Energy Management Systems Computer-based systems, designed primarily to monitor and control building energy use with the aim of optimising energy efficiency and meeting specified efficiency standards. €5,000 Information and Communications Technology (ICT) High Efficiency Enterprise ICT Hardware: ICT infrastructure hardware for business applications (such as servers) specifically designed to achieve very high levels of energy efficiency and that meet specified efficiency criteria. €1,000 Energy saving ICT Cooling: Equipment designed to achieve very high operational cooling efficiency and that meet specified efficiency criteria.
\nAdvanced ICT Electrical Management: Systems for power switching control with the aim of achieving optimal energy efficiency, and that meet specified efficiency criteria.
\nHeating and Electricity Provision Advanced Heating and Electricity Generation: Equipment for generating heat or electricity or both, with the resulting energy stream intended primarily for on-site use and that meet specified efficiency criteria. €1,000 Energy Saving Control Systems: Systems specifically designed to maximise energy efficiency of new or existing efficient heating or electricity generation equipment or both and that meet specified efficiency criteria.
\nProcess and Heating, Ventilation and Air-conditioning (HVAC) Control Systems Efficient Heat Conservation and Recovery: Equipment or systems or both specially designed to control, conserve or recover any generated heating and cooling energy and that meet specified efficiency criteria. €1,000 Advanced Liquid and Gas Handling Equipment: Equipment for energy-efficient on-site transfer of liquid or gas or both, meeting specified efficiency criteria. Includes very high efficiency pumps, fans, blowers and other liquid/gas handling equipment.
\nElectric and Alternative Fuel Vehicles Electric Vehicles and Associated Charging Equipment: Electric and part electric vehicles with a motor size >1kW, and relevant required charging equipment, that meet specified efficiency criteria. €1,000 Alternative Energy Vehicle Conversions: Equipment for the conversion to 100% bio-fuel for existing commercial diesel vehicles, that meet specified efficiency criteria. ”.
\nPreliminary tax.
\n38.— (1) Section 958 of the Principal Act is amended— (a) in subsection (1)— (i) in paragraph (a)— (I) by inserting the following definition after “ corres ponding corporation tax for the preceding chargeable period ”: “ ‘ corresponding income tax for the preceding chargeable period ’, in relation to a chargeable period which is an accounting period of a company, means an amount determined by the formula— I x C P where— I is the income tax payable under section 239 or 241 by the chargeable person for the preceding chargeable period, C is the number of days in the chargeable period, and P is the number of days in the preceding chargeable period;”, (II) by substituting the following for the definition of “ tax payable for the initial period ”: “ ‘ tax payable for the initial period ’, in relation to a chargeable period which is— (I) a year of assessment for capital gains tax (being the years of assessment 2003 to 2008 inclusive), means the tax which would be payable by the chargeable person if the year of assessment ended on 30 September in that year instead of 31 December in that year, or (II) a year of assessment for capital gains tax (being the year of assessment 2009 or any subsequent year of assessment), means the tax which would be payable by the chargeable person if the year of assessment ended on 30 November in that year instead of 31 December in that year;”, and (III) by inserting the following definition after “ pre- preceding chargeable period ”: “ ‘ relevant accounting period ’ shall be construed in accordance with paragraph (c);”, and (ii) by inserting the following after paragraph (b): “(c) (i) Subject to subparagraph (ii), a relevant accounting period shall mean an accounting period of a company, other than a small company, which commences on or after 14 October 2008. (ii) An accounting period shall not be a relevant accounting period where, but for this subparagraph, the final instalment of preliminary tax would, by reason of the dates on which the accounting period commences and ends, be due and payable in accordance with subsection (2BA)(c) on or before the date on which the initial instalment would be due and payable in accordance with subsection (2BA)(b).”, (b) in subsection (2B)— (i) in paragraph (a), by substituting “Subject to subsection (2BA), preliminary tax” for “Preliminary tax”, and (ii) in paragraph (c), by substituting “subsections (4C) and (4CA)” for “subsections (4C) and (4E)”, (c) by inserting the following after subsection (2B): “(2BA) (a) Preliminary tax appropriate to a chargeable period which is a relevant accounting period shall be due and payable in 2 instalments.
\n(b) The first of the 2 instalments referred to in paragraph (a) (in this section referred to as the ‘initial instalment’) shall be due and payable within a period of 6 months from the commencement of the accounting period, but in any event the initial instalment shall be due and payable not later than day 21 of the month in which that period of 6 months ends. (c) The second of the 2 instalments referred to in paragraph (a) (in this section referred to as the ‘final instalment’) shall be due and payable not later than the day which is 31 days before the day on which the accounting period ends, but where that day is later than day 21 of the month in which the first-mentioned day occurs, the final instalment shall be due and payable not later than day 21 of that month.”, (d) in subsection (2C)— (i) in paragraph (b), by inserting “Subject to paragraph (c), references” for “References”, and (ii) by inserting the following after paragraph (b): “(c) References in this Part to the due date for the payment of the initial instalment, or the final instalment, of preliminary tax shall, in the case where that tax is due for a chargeable period which is a relevant accounting period, be construed in accordance with subsection (2BA).”, (e) in subsection (3)(a)— (i) by substituting “Subject to subsections (3A), (4), (4B), (4C), (4CA), (4D), (4E), (4F) and (4G)” for “Subject to subsections (3A), (4), (4B), (4C), (4D) and (4E)”, and (ii) in subparagraph (v) by substituting the following for clause (I): “(I) as respects tax payable for the initial period— (A) where the initial period falls in the years of assessment 2003 to 2008 inclusive, on or before 31 October in the year of assessment, and (B) where the initial period falls in the year of assessment 2009 or any subsequent year of assessment, on or before 15 December in that year of assessment, and”, (f) in subsection (4C)— (i) by substituting “Subject to subsections (2B)(c), (4CA), (4E), (4F), (4G) and (11)” for “Subject to subsections (2B)(c), (4E) and (11)”, and (ii) in paragraph (b)(i), by substituting the following for clause (II): “(II) the sum of the corresponding corporation tax for the preceding chargeable period and the corresponding income tax for the preceding chargeable period,”, (g) by inserting the following after subsection (4C): “(4CA) (a) Subject to subsections (2B)(c), (4E), (4F), (4G) and (11), where but for this subsection tax payable by a chargeable person for a chargeable period which is a relevant accounting period would be due and payable in accordance with subsection (3), and—
\n(i) the chargeable person has defaulted in the payment of the initial instalment or final instalment of preliminary tax for the chargeable period, (ii) the initial instalment of preliminary tax paid by the chargeable person for the chargeable period is less than, or less than the lower of— (I) 45 per cent of the tax payable by the chargeable person for the chargeable period, or (II) 50 per cent of the sum of the corresponding corporation tax for the preceding chargeable period and the corresponding income tax for the preceding chargeable period, (iii) where the chargeable period commenced on the company coming within the charge to corporation tax, the initial instalment of preliminary tax paid by the chargeable person for the chargeable period is less than 45 per cent of the tax payable by the chargeable person for the chargeable period, (iv) the aggregate of the initial instalment and the final instalment of preliminary tax paid by the chargeable person for the chargeable period is less than 90 per cent of the tax payable by the chargeable person for the chargeable period, or (v) the initial instalment or the final instalment of preliminary tax payable by the chargeable person for the chargeable period was not paid by the date on which it was due and payable, then the tax payable by the chargeable person for the chargeable period shall be deemed to have been due and payable in accordance with paragraph (b). (b) (i) Tax due and payable in accordance with this paragraph by a chargeable person for a chargeable period which is a relevant accounting period shall be due and payable in 2 instalments. (ii) The first of the 2 instalments referred to in subparagraph (i) (in this paragraph and in paragraphs (c) and (d) referred to as the ‘initial relevant instalment’) shall be due and payable not later than the day on which the initial instalment of preliminary tax is due and payable in accordance with subsection (2BA). (iii) The second of the 2 instalments referred to in subparagraph (i) (in this paragraph and in paragraph (d) referred to as the ‘final relevant instalment’) shall be due and payable not later than the day on which the final instalment of preliminary tax is due and payable in accordance with subsection (2BA). (c) The amount of the initial relevant instalment shall be 45 per cent of the tax payable by the chargeable person for the chargeable period. (d) The amount of the final relevant instalment shall be an amount equal to the excess of the tax payable by the chargeable person for the chargeable period over the amount of the initial relevant instalment.”,
\n(h) in subsection (4E), by substituting “Subject to subsections (4F) and (4G), where” for “Where”, (i) by inserting the following after subsection (4E): “(4F) Where as respects a chargeable period which is a relevant accounting period— (a) the initial instalment of preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2BA) is less than 45 per cent of the tax payable by the chargeable person for the chargeable period, (b) the initial instalment of preliminary tax so paid by the chargeable person for the chargeable period is not less than 45 per cent of the amount which would be payable by the chargeable person for the chargeable period if no amount were included in the chargeable person’s profits for the chargeable period— (i) in respect of chargeable gains on the disposal by the person of assets in the part of the chargeable period which is after the date by which the initial instalment of preliminary tax for the chargeable period is payable in accordance with subsection (2BA), or (ii) in the case of a relevant company, in respect of profits or gains or losses accruing, and not realised, in the chargeable period on financial assets or financial liabilities as are attributable to changes in value of those assets or liabilities in the part of the chargeable period which is after the end of the month immediately preceding the month in which the initial instalment of preliminary tax for the chargeable period is payable in accordance with subsection (2BA), and (c) the aggregate of the initial instalment and the final instalment of preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2BA) is not less than 90 per cent of that amount of tax which would be payable by the chargeable person for the chargeable period if computed in accordance with subsection (4G)(b), then the initial instalment of preliminary tax paid by the chargeable person for the chargeable period shall be treated for the purposes of subsection (4CA) as having been paid by the date on which it is due and payable. (4G) Where as respects a chargeable period which is a relevant accounting period— (a) the aggregate of the initial instalment and the final instalment of preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2BA) is less than 90 per cent of the tax payable by the chargeable person for the chargeable period, (b) the aggregate of the initial instalment and the final instalment of preliminary tax so paid by the chargeable person for the chargeable period is not less than 90 per cent of the amount which would be payable by the chargeable person for the chargeable period if no amount were included in the chargeable person’s profits for the chargeable period—
\n(i) in respect of chargeable gains on the disposal by the person of assets in the part of the chargeable period which is after the date by which, or (ii) in the case of a relevant company, in respect of profits or gains or losses accruing, and not realised, in the chargeable period on financial assets or financial liabilities as are attributable to changes in value of those assets or liabilities in the part of the chargeable period which is after the end of the month immediately preceding the month in which, the final instalment of preliminary tax for the chargeable period is payable in accordance with subsection (2BA), and (c) the chargeable person makes a further payment of preliminary tax for the chargeable period within one month after the end of the chargeable period and the aggregate of that payment and the initial instalment and final instalment of preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2BA) is not less than 90 per cent of the tax payable by the chargeable person for the chargeable period, then the final instalment of preliminary tax paid by the chargeable person for the chargeable period shall be treated for the purposes of subsection (4CA) as having been paid by the date on which it is due and payable.”, and (j) by substituting the following for subsection (11): “(11) (a) In this subsection— ‘ initial balance ’ means the amount represented by the formula— A — B where— A is the amount of the initial instalment of preliminary tax paid by the surrendering company for the relevant period in accordance with subsection (2BA), and B is— (i) where the relevant period commenced on the surrendering company coming within the charge to corporation tax— (I) 45 per cent of the tax payable by the surrendering company for the relevant period, or (II) where subsection (2B)(c) applies in relation to that period, a nil amount, or, (ii) in any other case, the lower of— (I) 45 per cent of the tax payable by the surrendering company for the relevant period, or (II) 50 per cent of the sum of the corresponding corporation tax for the preceding chargeable period and the corresponding income tax for the preceding chargeable period, which is payable by the surrendering company; ‘ final balance ’ means the amount represented by the formula— C — D where— C is the amount of preliminary tax paid by the surrendering company for the relevant period in accordance with subsection (2B) or subsection (2BA), as the case may be, and D is 90 per cent of the tax payable by the surrendering company for the relevant period, or, where subsection (2B)(c) applies in relation to that period, a nil amount;
\n‘ relevant initial balance ’ means that part of an initial balance that is specified in a notice given in accordance with paragraph (c); ‘ relevant final balance ’ means that part of a final balance that is specified in a notice given in accordance with paragraph (c). (b) This subsection applies where— (i) a chargeable person being a company (in this subsection referred to as the ‘ surren dering company ’) which is a member of a group pays— (I) an initial instalment of preliminary tax for a chargeable period (in this subsection referred to as the ‘ relevant period ’) in accordance with subsection (2BA), being an amount which exceeds, or exceeds the lower of— (A) 45 per cent of the tax payable by the surrendering company for the relevant period, or (B) 50 per cent of the sum of the corresponding corporation tax for the preceding chargeable period and the corresponding income tax for the preceding chargeable period, which is payable by the surrendering company, (II) an initial instalment of preliminary tax for a relevant period which commenced on the surrendering company coming within the charge to corporation tax, being an amount which exceeds 45 per cent of the tax payable by that company for the relevant period, (III) an amount of preliminary tax for a relevant period in accordance with subsection (2B) or subsection (2BA) as the case may be, being an amount which exceeds 90 per cent of the tax payable by the surrendering company for the relevant period, or (IV) any amount of preliminary tax for a relevant period in respect of which subsection (2B)(c) applies, (ii) another chargeable person being a company (in this subsection referred to as the ‘ claimant company ’) which is a member of the group pays— (I) an initial instalment of preliminary tax for a chargeable period in accordance with subsection (2BA), being an amount which is less than, or less than the lower of— (A) 45 per cent of the tax payable by the claimant company for the chargeable period, or (B) 50 per cent of the sum of the corresponding corporation tax for the preceding chargeable period and the corresponding income tax for the preceding chargeable period, which is payable by the claimant company, (II) an initial instalment of preliminary tax for a chargeable period which commenced on the claimant company coming within the charge to corporation tax, being an amount which is less than 45 per cent of the tax payable by that company for the relevant period, or (III) an amount of preliminary tax for a chargeable period in accordance with subsection (2BA), being an amount which is less than 90 per cent of the tax payable by the claimant company for the chargeable period,
\n(iii) the chargeable period in subparagraph (ii) coincides with the relevant period, and (iv) the claimant company is not a small company in relation to the relevant period. (c) Where this subsection applies the 2 companies may, at any time on or before the specified return date for the chargeable period of the surrendering company, jointly give notice to the Collector-General, in such form as the Revenue Commissioners may require, that— (i) paragraph (d)(i) is to have effect in relation to the relevant initial balance, or, (ii) paragraph (d)(ii) is to have effect in relation to the relevant final balance, which is specified in the notice. (d) (i) Where this paragraph has effect in relation to any relevant initial balance— (I) an additional amount of preliminary tax equal to the relevant initial balance shall be deemed for the purposes of subsection (4CA)(a)(ii) to have been paid by the claimant company on the due date for the payment of the initial instalment of preliminary tax of that company for the relevant period if 100 per cent of the tax payable by the claimant company for the relevant period, disregarding this clause, is paid on or before the specified return date for the relevant period, and (II) the surrendering company shall for the purposes of this subsection be treated as having surrendered the relevant initial balance to the claimant company and that relevant initial balance shall not be available for use by any other company under this subsection. (ii) Where this paragraph has effect in relation to any relevant final balance— (I) an additional amount of preliminary tax equal to the relevant final balance shall be deemed for the purposes of subsection (4CA)(a)(iv) to have been paid by the claimant company on the due date for the payment of the final instalment of preliminary tax of that company for the relevant period if 100 per cent of the tax payable by the claimant company for the relevant period, disregarding this clause, is paid on or before the specified return date for the relevant period, and (II) the surrendering company shall for the purposes of this subsection be treated as having surrendered the relevant final balance to the claimant company and that relevant final balance shall not be available for use by any other company under this subsection. (e) A payment for a relevant initial balance or for a relevant final balance— (i) shall not be taken into account in computing profits or losses of either company for corporation tax purposes, and (ii) shall not be regarded as a distribution or a charge on income for any of the purposes of the Corporation Tax Acts,
\nand, in this paragraph, ‘ payment for a relevant initial balance or for a relevant final balance ’ means a payment made by the claimant company to the surrendering company in pursuance of an agreement between them as respects an amount surrendered in accordance with this subsection, being a payment not exceeding that amount. (f) (i) This subsection shall not affect the liability to pay corporation tax of any company to which the subsection relates. (ii) Where this subsection applies, the amount on which, but for this subsection, the claimant company is liable to pay interest in accordance with section 1080 shall be reduced by— (I) any relevant initial balance deemed to have been paid by that company in accordance with paragraph (d)(i)(I), or (II) any relevant final balance deemed to have been paid by that company in accordance with paragraph (d)(ii)(I). (g) For the purposes of this subsection, 2 companies are members of the same group if and only if they would be such members for the purposes of section 411.”.
\nAmendment of section 239 (income tax on payments by resident companies) of Principal Act.
\n39.— (1) Section 239 of the Principal Act is amended— (a) in subsection (4) by inserting “, but in any event not later than day 21 of the month in which that period of 9 months ends” after “the end of that period”, and (b) in subsection (5) by substituting “corporation tax” for “preliminary tax” and by inserting “in accordance with section 958 and” after “payable by the company”.
\nAmendment of Schedule 4 (exemption of specified non-commercial state sponsored bodies from certain tax provisions) to Principal Act.
\n40.— (1) Schedule 4 to the Principal Act is amended— (a) by inserting the following after paragraph 53: “53A. The Institute of Public Health in Ireland Limited.”, and (b) by inserting the following after paragraph 84: “84A. The Private Residential Tenancies Board.”,
\nCapital Gains Tax Tax treatment of certain venture fund managers.
\n41.— The Principal Act is hereby amended by inserting the following section after section 541B: “541C.— (1) In this section— ‘ carried interest ’, in relation to a relevant investment, means the share of profits (where the share ratio was agreed at the outset of the relevant investment) referred to in paragraph (b) of the definition of ‘total profits of an investment’ that is received by a company or partnership in respect of the management of the relevant investment; ‘ carried interest to which this section applies ’, in relation to a relevant investment, means an amount of carried interest which is not greater than 20 per cent of the total profits from the relevant investment; ‘ innovation activities ’ means development of new technological, telecommunication, scientific or business processes; ‘ investor ’, in relation to a relevant investment, means a person other than a person entitled to carried interest or a person connected with that person; ‘ relevant investment ’ means an investment, which remains in place for at least 6 years, in unquoted shares or securities of a private trading company and that company is— (a) carrying on a business set up and commenced on or after 1 January 2009, other than a business— (i) which was previously carried on by another person and to which the company has succeeded, (ii) the activities of which were previously carried on as part of another person’s business, or (iii) which is an excepted trade within the meaning of section 21A, and (b) carrying on a business of research, development or innovation activities; ‘ research and development activities ’ has the same meaning as in section 766(1); ‘ total profits of an investment ’, in relation to a relevant investment, means the sum of— (a) the profits which are attributable to investors in the relevant investment by reference to an agreed initial rate of return, and (b) the balance of the profits of the relevant investment over and above those calculated by reference to the agreed initial rate of return.
\nAmendment of section 29 (persons chargeable) of Principal Act.
\n42.— (1) Section 29 of the Principal Act is amended in subsection (4) by deleting “and the United Kingdom” in both places where it occurs.
\nAmendment of section 549 (transactions between connected persons) of Principal Act.
\n43.— (1) Section 549 of the Principal Act is amended— (a) by substituting the following for subsection (6): “(6) Where the asset mentioned in subsection (1) is subject to any right or restriction enforceable by the person making the disposal or by a person connected with that person, then that market value shall, where the amount of the consideration for the acquisition is in accordance with subsection (2) deemed to be equal to the market value of the asset, be what its market value would be if not subject to the right or restriction, reduced— (a) by the lesser of— (i) the market value of the right or restriction, and (ii) the amount by which its extinction would enhance the value of the asset to its owner, or (b) by the market value of the right or restriction, where the market value referred to in paragraph (a)(i) and the amount referred to in paragraph (a)(ii) are equal.”, and (b) by inserting the following after subsection (7): “(7A) (a) This subsection applies where the asset mentioned in subsection (1) is subject to any right or restriction enforceable by the person making the disposal or by the person connected with that person, and the market value of the asset at the date of its acquisition (without reference to any right or restriction) is greater than the consideration, in money or money’s worth, given in payment for that asset. (b) Where, on a subsequent disposal of an asset to which paragraph (a) applies by the person who acquired that asset, subsection (7) has the effect (without taking account of this subsection) of— (i) increasing a loss, or (ii) substituting a loss for a gain, then that subsection shall not apply.”.
\nCapital gains: rate of charge.
\n44.— (1) The Principal Act is amended— (a) in section 28(3) by substituting “22 per cent” for “20 per cent”, and (b) in section 649A— (i) by substituting the following for paragraph (b) of subsection (1): “(b) in the case of a relevant disposal made on or after 15 October 2008, 22 per cent.”, and (ii) in subsection (2) by deleting paragraph (b)(i).
\nTreatment of certain disposals made by The Pharmaceutical Society of Ireland.
\n45.— (1) The Principal Act is amended by inserting the following section after section 611: “611A.— (1) In this section— ‘ new Society ’ means Cumann Cógaisceoirí na hÉireann or, in the English language, The Pharmaceutical Society of Ireland established by section 5(2) of the Pharmacy Act 2007 ; ‘ old Society ’ means the Pharmaceutical Society of Ireland constituted and incorporated by section 4 of the Pharmacy (Ireland) Act 1875.
\nExcise Amendment of Chapter 1 of Part 2 (consolidation and modernisation of general excise law) of Finance Act 2001.
\n46.— Chapter 1 of Part 2 of the Finance Act 2001 is amended— (a) by substituting the following for section 99: “Liability of persons.
\n99.— (1) An authorised warehouse-keeper is liable for payment of the excise duty on excisable products released from a tax warehouse by such authorised warehousekeeper— (a) for consumption, or (b) for delivery under a suspension arrangement.
\nAssessment of excise duty payable.
\n99A.— (1) (a) In this section ‘ authorised officer ’ means an officer authorised by the Commissioners to exercise the powers conferred by this section. (b) This section does not apply to betting duty chargeable under Chapter 1 of Part 2 of the Finance Act 2002 .
\nRates of mineral oil tax.
\n47.— The Finance Act 1999 is amended— (a) with effect as on and from 15 October 2008 by substituting the following for Schedule 2 to that Act (as amended by section 59(a) of the Finance Act 2007 ): “SCHEDULE 2 Rates of Mineral Oil Tax With effect as on and from 15 October 2008 Description of Mineral Oil Rate of Tax Light Oil:
\nLeaded petrol Unleaded petrol Super unleaded petrol Aviation gasoline €553.04 per 1,000 litres €508.79 per 1,000 litres €547.79 per 1,000 litres €276.52 per 1,000 litres Heavy Oil:
\nUsed as a propellant with a maximum sulphur content of 50 milligrammes per kilogramme Other heavy oil used as a propellant Kerosene used other than as a propellant Fuel oil Other heavy oil €368.05 per 1,000 litres €420.44 per 1,000 litres €00.00 €14.78 per 1,000 litres €47.36 per 1,000 litres Liquefied Petroleum Gas:
\nUsed as a propellant Other liquified petroleum gas €63.59 per 1,000 litres €00.00 Coal:
\nFor business use For other use €4.18 per tonne €8.36 per tonne ”, and (b) with effect as on and from 1 November 2008 by substituting the following for Schedule 2 to that Act (as amended by paragraph (a)): “SCHEDULE 2 Rates of Mineral Oil Tax With effect as on and from 1 November 2008 Description of Mineral Oil Rate of Tax Light Oil:
\nPetrol Aviation gasoline €508.79 per 1,000 litres €508.79 per 1,000 litres Heavy Oil:
\nUsed as a propellant Used for air navigation Used for private pleasure navigation Kerosene used other than as a propellant Fuel oil Other heavy oil €368.05 per 1,000 litres €368.05 per 1,000 litres €368.05 per 1,000 litres €00.00 €14.78 per 1,000 litres €47.36 per 1,000 litres Liquefied Petroleum Gas:
\nUsed as a propellant Other liquified petroleum gas €63.59 per 1,000 litres €00.00 Coal:
\nFor business use For other use €4.18 per tonne €8.36 per tonne ”.
\nAmendment of Chapter 1 (mineral oil tax) of Part 2 of Finance Act 1999.
\n48.— Chapter 1 of Part 2 of the Finance Act 1999 is amended— (a) in section 94(1) by deleting the definitions of “motor octane number” and “research octane number”, (b) in section 96(2A)— (i) in paragraph (a) by deleting the word “unleaded” in both places where it occurs, (ii) in paragraph (b) by deleting the words “with a maximum sulphur content as provided for in that Schedule”, (c) in section 97B(3) by substituting “an amount calculated at the rate of €232.27 per 1,000 litres on the quantity used” for “the amount of mineral oil tax paid less an amount calculated at the rate of €166.16 per 1,000 litres”.
\nAmendment of Chapter 1 (electricity tax) of Part 2 of Finance Act 2008.
\n49.— Chapter 1 of Part 2 of the Finance Act 2008 is amended— (a) in section 60 by inserting the following after subsection (4): “(5) (a) Where, at the time when the return under subsection (1) is made, a supplier does not have all the information required to determine the tax liability for supplies made during the last 2 months of an accounting period, the return may be completed on the basis of an estimate of that liability. (b) Where paragraph (a) applies, the supplier shall, as soon as the required information is available and at the latest within 3 months of the end of the accounting period, submit a final return for that accounting period, and pay any amount of tax outstanding. (c) No interest shall be charged on any amount of tax paid in accordance with paragraph (b), where that amount does not exceed 5 per cent of the total tax liability for the calendar year.”, (b) in paragraph (c) of subsection (4) of section 63 by substituting the following for subparagraph (ii): “(ii) For the purposes of subparagraph (i) the data on the fuel mix shall be that in respect of the most recent year for which, at the end of the accounting period concerned in the return, the Commission for Energy Regulation has published such data.”, and (c) in section 64 by substituting the following for subsection (3): “(3) (a) Repayments in respect of relief under paragraphs (b) and (c) of subsection (1) of section 63 shall be made to the supplier of the electricity concerned. (b) Repayments in respect of relief under paragraph (d) of subsection (1) of section 63 shall be made to the consumer of the electricity concerned.”.
\nRates of alcohol products tax.
\n50.— The Finance Act 2003 is amended with effect as on and from 15 October 2008 by substituting the following for Schedule 2 to that Act: “SCHEDULE 2 Rates of Alcohol Products Tax (With effect as on and from 15 October 2008) Description of Product Rate of Tax Spirits: €39.25 per litre of alcohol in the spirits Beer:
\nExceeding 0.5% vol but not exceeding 1.2% vol Exceeding 1.2% vol but not exceeding 2.8% vol Exceeding 2.8% vol €0.00 €9.93 per hectolitre per cent of alcohol in the beer €19.87 per hectolitre per cent of alcohol in the beer Wine:
\nStill and sparkling, not exceeding 5.5% vol Still, exceeding 5.5% vol but not exceeding 15% vol Still, exceeding 15% vol Sparkling, exceeding 5.5% vol €109.34 per hectolitre €328.09 per hectolitre €476.06 per hectolitre €656.18 per hectolitre Other Fermented Beverages:
\nStill and sparkling, not exceeding 2.8% vol Still and sparkling, exceeding 2.8% vol but not exceeding 6.0% vol Still and sparkling, exceeding 6.0% vol but not exceeding 8.5% vol Still, exceeding 8.5% vol Sparkling, exceeding 8.5% vol €41.62 per hectolitre €83.25 per hectolitre €192.47 per hectolitre €273.00 per hectolitre €546.01 per hectolitre
\nStill and sparkling, not exceeding 5.5% vol Still, exceeding 5.5% vol Sparkling, exceeding 5.5% vol €109.34 per hectolitre €328.09 per hectolitre €656.18 per hectolitre Intermediate Beverages:
\nStill, not exceeding 15% vol Still, exceeding 15% vol Sparkling €328.09 per hectolitre €476.06 per hectolitre €656.18 per hectolitre ”.
\nAmendment of section 78A (relief for small breweries) of Finance Act 2003.
\n51.— Section 78A (as amended by section 73 of the Finance Act 2008 ) of the Finance Act 2003 is amended in subsection (1) by substituting “In the case of beer subject to alcohol products tax at the rate for beer exceeding 2.8% vol, a relief of half the amount of alcohol products tax paid on such beer shall,” for “A relief of half the amount of alcohol products tax paid on beer shall,”.
\nRates of tobacco products tax.
\n52.— The Finance Act 2005 is amended with effect as on and from 15 October 2008 by substituting the following for Schedule 2 to that Act (as amended by section 74 of the Finance Act 2008 ): “SCHEDULE 2 Rates of Tobacco Products Tax (With effect as on and from 15 October 2008) Description of Product Rate of Tax Cigarettes €175.30 per thousand together with an amount equal to 18.28 per cent of the price at which the cigarettes are sold by retail Cigars €250.729 per kilogram Fine-cut tobacco for the rolling of cigarettes €211.578 per kilogram Other smoking tobacco €173.946 per kilogram ”.
\nAmendment of section 67 (betting duty) of Finance Act 2002.
\n53.— (1)
\nof the Finance Act 2002 (as amended by section 90 of the Finance Act 2006 ) is amended— (a) in subsection (1) by substituting “2 per cent” for “1 per cent”, and (b) by inserting the following after subsection (1): “(1A) For the avoidance of doubt, betting duty imposed by subsection (1) is chargeable on all bets placed by a person with a bookmaker at the bookmaker’s registered premises, irrespective of the means by which a bet is placed.”.
\nAmendment of section 71 (payment of betting duty) of Finance Act 2002.
\n54.— Section 71(2) (inserted by section 91 of the Finance Act 2006 ) of the Finance Act 2002 shall not have effect in respect of betting duty which becomes due on or after 1 January 2009.
\nAir travel tax.
\n55.— (1) In this section— “ aircraft ” means an aircraft capable of carrying 20 or more passengers, but does not include an aircraft used for State or military purposes; “ airline operator ” means the operator or registered owner of an aircraft, offering or operating an air passenger service; “ airport ” means an airport within the meaning of the Air Navigation and Transport (Amendment) Act 1998 , but does not include an airport from which the number of departures of passengers in the previous calendar year was less than 10,000; “ airport authority ” means the person owning, whether in whole or in part, or managing, either alone or jointly with another person, an airport to which the provisions of the Air Navigation and Transport (Amendment) Act 1998 apply; “ crew ” means the flight crew and cabin attendants of a flight; “ Commissioners ” means the Revenue Commissioners; “ disabled person ” means any person whose mobility when using transport is reduced due to any physical disability (sensory or locomotor, permanent or temporary), intellectual disability or impairment, or any other cause of disability, or age, and whose situation needs appropriate attention and the adaptation to his or her particular needs of the service made available to all passengers; “ groundhandling supplier ” means a supplier of groundhandling services within the meaning of the European Communities (Access To The Groundhandling Market At Community Airports) Regulations 1998 ( S.I. No. 505 of 1998 ); “ officer ” means an officer of the Commissioners; “ passenger ” means a person, other than a member of the crew (including any relief crew) of the aircraft, travelling on an aircraft, but does not include— (a) a disabled person who has requested and availed of assistance from the airline operator in accordance with Council Regulation (EC) No. 1107/2006 1 , or the person travelling with the disabled person for the purposes of providing care or assistance to the disabled person, (b) a person under the age of 2 years who does not occupy one of the seats provided for passengers on an aircraft, (c) a transit or a transfer passenger; “ registered owner ”, in relation to an aircraft, means the person who is registered as the owner of the aircraft in— (a) the register established under section 58 of the Irish Aviation Authority Act 1993 , or (b) a register (by whatever name called) of another state that corresponds to the register so established; “ transfer passenger ” means a passenger who arrives on a flight to an airport and who departs from the airport on a further flight, other than to the airport where the passenger’s journey originated, where both flights are part of a single booking and where the length of time between the scheduled time of arrival of the flight to the airport and the scheduled time of departure of the flight from that airport is not more than 6 hours;
\n“ transit passenger ” means a passenger who is on board an aircraft which lands at an airport in the course of its journey and who continues his or her journey on that aircraft.
\nAmendment of section 7 (issue of bookmakers’ licences) of Betting Act 1931.
\n56.—
\nof the Betting Act 1931 is amended— (a) by deleting subsection (2), and (b) in subsection (4) by deleting “and shall have affixed thereto by adhesion the photograph of such person required by this section to be sent by him with the application for such licence”.
\nRepeals relating to excise law.
\n57.— (1) The enactments set out in Schedule 1 are repealed to the extent mentioned in the third column opposite the reference to the enactment concerned.
\nWholesale dealers’ licences.
\n58.— Paragraph 4 of Part B (which relates to wholesale dealers’ licences) of the First Schedule to the Finance (1909-10) Act 1910 shall cease to have effect.
\nIncrease in duties on certain liquor licences.
\n59.— (1) In this section “section 43” means section 43 of the Finance (1909-10) Act 1910.
\nAmendment of section 130 (interpretation) of Finance Act 1992.
\n60.—
\nof the Finance Act 1992 is amended— (a) by substituting the following for the definition of ‘CO 2 emissions’: “ ‘ CO 2 emissions ’ means the level of carbon dioxide (CO 2) emissions for a vehicle measured in accordance with the provisions of Council Directive 80/1268/EEC of 16 December 1980 1 (as amended) and listed in Annex VIII of Council Directive 70/156/EEC of 6 February 1970 2 (as amended) and displayed in accordance with the provisions of Council Directive 1999/94/EC of 13 December 1999 3 (as amended) and contained in the relevant EC type-approval certificate or EC certificate of conformity or any other appropriate documentation which confirms compliance with any measures taken to give effect in the State to any act of the European Communities relating to the approximation of the laws of Member States in respect of type-approval for the type of vehicle concerned;”, (b) by substituting “a motor-cycle” for “a bicycle, tricycle or quadricycle propelled by an engine or motor or with an attachment for propelling it by mechanical power, whether or not the attachment is being used, a moped, a scooter and an autocycle,” in the definition of ‘ mechanically propelled vehicle’, and (c) by substituting the following for the definition of “ motor-cycle”: “ ‘ motor-cycle’ means a mechanically propelled vehicle being a bicycle, tricycle or quadricycle propelled by an engine or motor or with an attachment for propelling it by mechanical power, whether or not the attachment is being used, a moped, a scooter and an autocycle.”.
\nAmendment of section 131 (registration of vehicles by Revenue Commissioners) of Finance Act 1992.
\n61.— (1)
\nof the Finance Act 1992 is amended in subsection (1) by inserting the following after paragraph (b): “(ba) (i) In respect of a vehicle which is within any particular category of vehicle that is prescribed for the purposes of this paragraph or is within any other class of vehicle that is prescribed, the Commissioners may, as a condition of registration, require confirmation in accordance with this paragraph that such vehicle— (i) is a mechanically propelled vehicle as defined in section 130, and (ii) complies with any matter prescribed for the purposes of subparagraph (ii)(II). (ii) The Commissioners may appoint one or more than one individual or body (in this paragraph referred to as a ‘ competent person ’) to carry out a pre-registration examination of a vehicle to which subparagraph (i) relates— (I) to determine whether or not each vehicle duly examined under this paragraph is a mechanically propelled vehicle for the purposes of section 130, and (II) to ascertain whether or not such other prescribed matters (being matters required to be ascertained) have been complied with as are necessary— (A) for the registration of the vehicle concerned, and (B) for the proper operation of vehicle registration tax. (iii) Where in respect of a vehicle the Commissioners require confirmation as provided for by subparagraph (i), then they shall not register the vehicle without the production of a statement issued by a competent person that the vehicle— (i) is a mechanically propelled vehicle, and (ii) complies with any matter prescribed for the purposes of subparagraph (ii)(II) and which relates to the vehicle. (iv) The fee to be charged by the competent person for the examination of a vehicle shall be agreed with the Commissioners. Different fees may be so agreed in respect of different types of examination and different categories or other classes of vehicles. The fee shall be paid by the person presenting the vehicle concerned for pre-registration examination. The fee shall be credited against the vehicle registration tax payable in respect of the registration of the vehicle but no other fees, charges or costs incurred by the person presenting the vehicle for examination shall be so credited. (v) A competent person shall comply with any instructions and directions given by the Revenue Commissioners to such person for the purposes of this paragraph. (vi) The Commissioners may revoke the appointment of a competent person.”.
\nAmendment of section 132 (charge of excise duty) of Finance Act 1992.
\n62.—
\nof the Finance Act 1992 is amended— (a) by substituting the following for paragraph (2): “(2) Vehicle registration tax shall become due and be paid at the time of the registration of a vehicle or the making of the declaration under section 131(3), as may be appropriate, by— (a) an authorised person in accordance with section 136(5)(b), (b) the person who registers the vehicle, (c) the person who has converted the vehicle where the prescribed particulars in relation to the conversion have not been declared to the Commissioners in accordance with section 131(3), (d) the person who is in possession of the vehicle that is a converted vehicle which has not been declared to the Commissioners in accordance with section 131(4), and where under paragraphs (a) to (d), more than one such person is, in any case, liable for the payment of a vehicle registration tax liability, then such persons shall be jointly and severally liable.”, and (b) by inserting the following after subsection (3): “(3A) Notwithstanding subsection (3), where the Commissioners are of the opinion that a vehicle has not been registered at the time specified in Regulation 8 of the Vehicle Registration and Taxation Regulations 1992 ( S.I. No. 318 of 1992 ), the amount of vehicle registration tax due and payable in accordance with subsection (3) shall be increased by an amount calculated in accordance with the following formula:
\nA × P × N where— A is the amount of vehicle registration tax calculated in accordance with subsection (3), P is 0.1 per cent, and N is the number of days from the date the vehicle should have been registered in accordance with Regulation 8 of the Vehicle Registration and Taxation Regulations 1992 and the date of registration of the vehicle.”.
\nAmendment of section 134 (permanent reliefs) of Finance Act 1992.
\n63.— (1)
\nof the Finance Act 1992 is amended— (a) in subsection (7) by inserting “For the avoidance of doubt, the business of hiring vehicles does not include and shall be deemed never to have included the hiring of vehicles that are a supply of the kind specified in paragraph (i)(e) of the First Schedule of the Value-Added Tax Act 1972 , in respect of vehicles supplied pursuant to an agreement in accordance with section 3(1)(b) of that Act.” after “limitations.”, (b) in subsection (11) by substituting the following for paragraph (b) (other than for the proviso to that paragraph): “(b) In paragraph (a) ‘ short-term self-drive con tracts ’ means contracts under which vehicles are hired to persons for the purpose of being driven by them for any term or part of a term which, when added to the term of any such hiring of the same vehicle or any other vehicle to the same person does not exceed 5 weeks in any period of 6 months from the date of the commencement of the last hiring.”, and (c) by inserting the following after subsection (14): “(15) (a) The repayment amount referred to in subsection (11)(a) shall be reduced by 33 per cent for vehicles that are withdrawn from short-term car-hire during the period 1 October 2009 to 30 September 2010. (b) The repayment amount referred to in subsection (11)(a) shall be reduced by 66 per cent for vehicles that are withdrawn from short-term car-hire during the period 1 October 2010 to 30 September 2011.”.
\n(2)
\nof the Finance Act 1992 is further amended, with effect as on and from 1 October 2011, by the deletion of subsections (11) to (14) and subsection (15) (inserted by subsection (1)(c)).
\nAmendment of section 135 (temporary exemption from registration) of Finance Act 1992.
\n64.— (1) Chapter IV of Part II of the Finance Act 1992 is amended by substituting the following for section 135: “135.— (1) A vehicle which is temporarily brought into the State may be exempted by the Commissioners from the requirement to be registered, in such manner and subject to such conditions, restrictions and limitations as the Minister may prescribe by regulations made under section 141(3) if the vehicle is— (a) brought into the State by a person established outside the State for such person’s private or business use, (b) brought into the State by an individual established in the State for such individual’s private or business use where such an individual— (i) is employed by an employer established in another Member State who provides a vehicle as part of their contract of employment, where such vehicle is owned or leased by the employer, or (ii) is self-employed and has established a legally accountable undertaking in another Member State, whose business is carried on solely or principally in the other Member State, and where the vehicle is a category A vehicle or a motor-cycle, it is used principally for business use in another Member State, (c) brought into the State solely for the purpose of a competition, exhibition, show, demonstration, or similar purpose and is not intended to be sold or offered for sale in the State and is intended to be taken out of the State on the fulfilment of such purpose, or (d) designed or specially adapted as professional equipment brought into the State by a person established outside the State for use exclusively by such person or under his or her personal supervision.
\nAmendment of section 135B (repayment of amounts in respect of vehicle registration tax in certain cases) of Finance Act 1992.
\n65.— Section 135B of the Finance Act 1992 is amended by inserting the following after subsection (5): “(6) (a) Subject to sections 105B, 105C and 105D of the Finance Act 2001 where an authorised person pays an amount of vehicle registration tax in respect of a vehicle which was not due, any repayment of the overpaid amount and interest (if any) payable under section 105D shall, subject to the provisions of this subsection, be made to the authorised person on condition that the authorised person pays the amount of the repayment and interest to the person who was the registered owner of the vehicle at the time of the registration of the vehicle. (b) (i) Where the registered owner of the vehicle at the date of the repayment to the authorised person is the first registered owner the amount of the repayment shall be the amount of the vehicle registration tax overpaid. (ii) Where the first registered owner has disposed of the vehicle prior to the date of the repayment the amount of the repayment shall be calculated as follows: (OP + V) — (S × R) where— OP is the original purchase price, V is the amount of vehicle registration tax paid, S is the price, if any, received by the first registered owner at the time of disposal, and R is the rate of vehicle registration tax charged at the time of registration on purchase. (c) For the purpose of paragraph (b) the first registered owner shall as a condition of the repayment present documentary proof to the Commissioners of the disposal of the vehicle and the price (if any) received by that owner in respect of that disposal. (d) An authorised person shall be entitled to deduct an amount not more than 10 per cent of the repayment from the payment to the first registered owner of the vehicle to cover the costs of the authorised person in processing the repayment claim. (e) Where an authorised person fails to make a payment within 30 days to the first registered owner in accordance with paragraph (a) following payment by the Commissioners of such repayment, any amount unpaid, shall for the purpose of this Act, be treated as if it were vehicle registration tax due by the authorised person on the day following the expiry of the 30 day period.”.
\nAmendment of section 141 (regulations) of Finance Act 1992.
\n66.—
\nof the Finance Act 1992 is amended in subsection (2) by substituting “section 130,” for “section 130.” in paragraph (v) and by inserting the following after that paragraph: “(w) make provision for matters to be prescribed for the purposes of section 131(1)(ba), and for the purposes of section 135, in respect of the pre-registration examination of vehicles.”.
\nValue-Added Tax Interpretation (Part 3).
\n67.— In this Part “Principal Act” means the Value-Added Tax Act 1972 .
\nAmendment of section 3 (supply of goods) of Principal Act.
\n68.— Section 3 of the Principal Act is amended in subsection (1C)— (a) in paragraph (a), by substituting “immovable goods.” for “immovable goods, and” and (b) by deleting paragraph (b).
\nAmendment of section 7A (option to tax lettings of immovable goods) of Principal Act.
\n69.— Section 7A of the Principal Act is amended— (a) in subsection (1)(d)(iv)— (i) by inserting “the landlord or” after “when”, and (ii) by substituting “occupies” for “commences to occupy”, and (b) in subsection (2)— (i) in paragraph (a) by substituting the following for subparagraph (ii): “(ii) where the landlord, whether or not connected to the tenant, or a person connected to the landlord, occupies the immovable goods that is subject to that letting whether that landlord or that person occupies those goods by way of letting or otherwise.”, and (ii) to insert the following after paragraph (b): “(c) Paragraph (a)(ii) and subsection (1)(d)(iv) shall not apply where the occupant (being any person including the landlord referred to in that paragraph or that subsection) uses the immovable goods which are the subject of the letting for the purpose of making supplies which entitle that occupant to deduct, in accordance with section 12, at least 90 per cent of all tax chargeable in respect of goods or services used by that occupant for the purpose of making those supplies. However, where a landlord has exercised a landlord’s option to tax in respect of a letting to which paragraph (a)(ii) would have applied but for this paragraph, paragraph (a)(ii) shall apply from the end of the first accounting year in which the immovable goods are used for the purpose of making supplies which entitle that occupant to deduct less than 90 per cent of the said tax chargeable.”.
\nAmendment of section 7B (transitional measures: waiver of exemption) of Principal Act.
\n70.— Section 7B of the Principal Act is amended by inserting the following after subsection (5)— “(6) Where a landlord has a letting to which subsection (3) or (4) applies and that landlord becomes a person in a group within the meaning of section 8(8) on or after 1 July 2008 and the person to whom that letting is made is a person in that group, then the person referred to in section 8(8)(a)(i)(I) in respect of that group shall be liable to pay the amount as specified in subsection (3)(a) as if it were tax due in accordance with section 19— (a) in the case of a landlord who became a person in that group before the date of passing of the Finance (No. 2) Act 2008, in the taxable period in which that Act is passed, or (b) in the case of a landlord who became a person in that group after the date of passing of the Finance (No. 2) Act 2008, in the taxable period during which that landlord became a person in that group.”.
\nTravel agent’s margin scheme.
\n71.— The Principal Act is amended with effect from 1 January 2010 by inserting the following after section 10B: “10C.— (1) In this section— ‘ bought-in services ’ means goods or services which a travel agent purchases for the direct benefit of a traveller from another taxable person or from a person engaged in business outside the State; ‘ margin scheme services ’ means bought-in services supplied by a travel agent to a traveller; ‘ travel agent ’ means a taxable person who acts as a principal in the supply to a traveller of margin scheme services, and for the purposes of this section travel agent includes tour operator; ‘ travel agent’s margin ’, in relation to a supply of margin scheme services, means an amount which is calculated in accordance with the following formula:
\nA — B where— A is the total consideration which the travel agent becomes entitled to receive in respect of or in relation to that supply of margin scheme services including all taxes, commissions, costs and charges whatsoever and value-added tax payable in respect of that supply, and B is the amount payable by the travel agent to a supplier in respect of bought-in services included in that supply of margin scheme services to the traveller, but any bought-in services purchased by the travel agent prior to 1 January 2010 in respect of which that travel agent claims deductibility in accordance with section 12 shall be disregarded in calculating the margin, and if that B is greater than that A the travel agent’s margin in respect of that supply shall be deemed to be nil; ‘ travel agent’s margin scheme ’ means the special arrangements for the taxation of margin scheme services.
\nAmendment of section 11 (rates of tax) of Principal Act.
\n72.— Section 11 of the Principal Act is amended with effect from 1 December 2008 in subsection (1)(a) by substituting “21.5 per cent” for “21 per cent”.
\nAmendment of section 12 (deduction for tax borne or paid) of Principal Act.
\n73.— Section 12 of the Principal Act is amended— (a) in subsection (1)— (i) in paragraph (a) by deleting “and” in subparagraph (vii), and by substituting “section 12A, and” for “section 12A.” in subparagraph (viii), (ii) by inserting the following after subparagraph (viii) of paragraph (a): “(ix) subject to subsection (4) and regulations (if any), 20 per cent of the tax charged to that accountable person in respect of the purchase, hiring, intra-Community acquisition or importation of a qualifying vehicle (within the meaning assigned by paragraph (c)), where that vehicle is used primarily for business purposes, being at least 60 per cent of the use to which that vehicle is put, and where that accountable person subsequently disposes of that vehicle the tax deducted by that person in accordance with this subsection shall be treated as if it was not deductible by that person for the purposes of paragraph (xxiv)(c) of the First Schedule:”, and (iii) by inserting the following after paragraph (b): “(c) For the purposes of paragraph (a)(ix) and subsection (4)(ba), a ‘qualifying vehicle’ means a motor vehicle which, for the purposes of vehicle registration tax is first registered, in accordance with section 131 of Finance Act 1992, on or after 1 January 2009 and has, for the purposes of that registration, a level of CO 2 emissions of less than 156g/km.”, (b) in subsection (3)(a)(iii) by inserting “subject to subsection (1)(a)(ix)” before “the purchase”, (c) in subsection (4) by inserting the following after paragraph (b): “(ba) For the purposes of this subsection, the reference in paragraph (b) to ‘tax, borne or payable’ shall, in the case of an acquisition of a qualifying vehicle (within the meaning assigned by subsection (1)(c)) be deemed to be a reference to ‘20 per cent of the tax, borne or payable’.”, and (d) by inserting the following after subsection (4): “(4A) (a) Where an accountable person deducts tax in relation to the purchase, intra-Community acquisition or importation of a qualifying vehicle in accordance with subsection (1)(a)(ix) and that person disposes of that qualifying vehicle within 2 years of that purchase, acquisition or importation, then that person shall be obliged to reduce the amount of the tax deductible by that person for the taxable period in which the vehicle is disposed of by an amount calculated in accordance with the following formula:
\nTD x (4-N) 4 where— TD is the amount of tax deducted by that accountable person on the purchase, acquisition or importation of that vehicle, and N is a number that is equal to the number of days from the date of purchase, acquisition or importation of the vehicle by that accountable person to the date of disposal by that person, divided by 182 and rounded down to the nearest whole number, but if that N is greater than 4 then N shall be 4. (b) Where an accountable person deducts tax in relation to the purchase, intra-Community acquisition or importation of a qualifying vehicle in accordance with subsection (1)(a)(ix) and the vehicle is subsequently used for less than 60 per cent business purposes in a taxable period, then that person is obliged to reduce the amount of tax deductible by that person for that taxable period by an amount calculated in accordance with the following formula:
\nTD x (4-N) 4 where— TD is the amount of tax deducted by that accountable person on the purchase, acquisition or importation of that vehicle, and N is a number that is equal to the number of days from the date of purchase, acquisition or importation of the vehicle by that accountable person to the first day of the taxable period in which the vehicle is used for less than 60 per cent business purposes, divided by 182 and rounded down to the nearest whole number, but if that N is greater than 4 then N shall be 4.”.
\nAmendment of section 20 (refund of tax) of Principal Act.
\n74.— Section 20 of the Principal Act is amended— (a) in subsection (5)(a) by substituting “unless they determine that the refund of that overpaid amount or part thereof would result in the unjust enrichment of the claimant” for “unless that refund would result in the unjust enrichment of the claimant”, and (b) by substituting the following for paragraphs (b), (c) and (d) of subsection (5): “(b) A person who claims a refund of an overpaid amount under this subsection shall make that claim in writing setting out full details of the circumstances of the case and identifying the overpaid amount in respect of each taxable period to which the claim relates. The claimant shall furnish such relevant documentation to support the claim as the Revenue Commissioners may request. (c) (i) For the purposes of determining whether a refund of an overpaid amount or part thereof would result in the unjust enrichment of a claimant, the Revenue Commissioners shall have regard to— (I) the extent to which the cost of the overpaid amount was, for practical purposes, passed on by the claimant to other persons in the price charged by that claimant for goods or services supplied by that claimant, (II) any net loss of profits which they have reason to believe, based on their own analysis and on any information that may be provided to them by the claimant, was borne by the claimant due to the mistaken assumption made in the operation of the tax, and (III) any other factors that the claimant brings to their attention in this context.