(i) to include the interest, or interests as the case may be, in that trade or business of one or more persons connected with the shareholder, if increasing that interest of the shareholder by such interest, or interests as the case may be, would result in the interest of the shareholder in the trade or business not having been significantly reduced, (ii) notwithstanding paragraph (c), not to have been significantly reduced where— (I) the business carried on by the close company, taking account of any trade carried on by that company, consisted wholly or mainly of the holding of shares in another company carrying on a trade or business or in more than one such other company, and (II) the interest of the shareholder in any such trade or business last-mentioned in clause (I), whether or not that trade or business continues to be carried on by such other company after the disposal, is not significantly reduced, (iii) notwithstanding paragraph (c), not to have been significantly reduced where the gain realised by the shareholder on that disposal is wholly or mainly attributable to payments or other transfers of value from another company or companies, which is or are controlled by that shareholder or by that shareholder and persons connected with him or her, to the close company, and (iv) not to have been significantly reduced where— (I) it would not have been so reduced if the shareholder were to be treated as beneficially entitled to any shares to which he or she could, at any time, become so entitled by the exercise of a discretion by trustees, (II) the acquisition of those shares by the trustees was directly or indirectly related to a disposal, including a prior or subsequent disposal, of such shares by the shareholder, and (III) the shares were acquired by the trustees with the direct or indirect financial assistance of a company or companies, which is or are controlled by the shareholder or by the shareholder and persons connected with the shareholder.”.
\nCourt funds.
\n40.—The Principal Act is amended— (a) in section 739B(1)— (i) in the definition of “chargeable event” by inserting the following after paragraph (II): “(IIa) any transaction in relation to, or in respect of, relevant units (within the meaning of subsection (2A)(a)) in an investment undertaking which transaction arises only by virtue of a change of court funds manager for that undertaking,”, and (ii) “collective investor”: “ ‘court funds manager’ means a person appointed by the Service to set up and administer an investment undertaking with money under the control or subject to the order of any Court;”, and (b) in section 739D(1)— (i) by deleting “and” after “unit,” in paragraph (b), and (ii) by inserting the following after paragraph (b): “(bb) references to an amount invested by a unit holder in an investment undertaking for the acquisition of a unit (in this paragraph referred to as the ‘original unit’), where the original unit has been exchanged for a unit or units in a transaction of the type referred to in paragraph (IIa) of the definition of ‘chargeable event’ in section 739B(1), are references to the amount invested by the unit holder for the acquisition of the original unit, and”.
\nAssets of overseas life assurance companies.
\n41.—(1) Section 29(3) of the Principal Act is amended— (a) in paragraph (c) by substituting “agency,” for “agency.”, and (b) by inserting the following after paragraph (c): “(d) assets situated outside the State of an overseas life assurance company (within the meaning of section 706(1)), being assets which were held in connection with the life business (within the meaning of section 706(1)) carried on by the company, which at or before the time the chargeable gains accrued were used or held by or for the purposes of that company's branch or agency in the State.”.
\nAmendment of Chapter 5 (policyholders— new basis) of Part 26 of Principal Act.
\n42.—(1) Chapter 5 of Part 26 of the Principal Act is amended— (a) in section 730C(1)(a) by inserting the following after subparagraph (iii): “(iv) the ending of a relevant period, where such ending is not otherwise a chargeable event within the meaning of this section, and for the purposes of this subparagraph ‘relevant period’ in relation to a life policy means a period of 7 years beginning with the inception of the policy and each subsequent period of 7 years beginning immediately after the preceding relevant period,”, (b) in section 730D— (i) in subsection (1)— (I) by deleting “and” in paragraph (d), and (II) by inserting the following after paragraph (d): “(da) if the chargeable event is the ending of a relevant period in accordance with section 730C(1)(a)(iv), a gain in the amount determined under subsection (3)(da), and”, (ii) in subsection (3)— (I) by deleting “and” in paragraph (d), and (II) by inserting the following after paragraph (d): “(da) in subsection (1)(da) is the amount determined by the formula— V — P and”, (iii) in subsection (4) by inserting the following after paragraph (b): “(ba) Where a chargeable event in relation to a life policy is the ending of a relevant period in accordance with section 730C(1)(a)(iv) then, for the purposes of determining a gain arising on the happening of a subsequent chargeable event, the allowable premiums immediately after the time of such ending shall be deemed to be the greater of— (i) an amount equal to the value of the policy immediately after the time of such ending, and (ii) the allowable premiums immediately before such ending.”, and (iv) by inserting the following after subsection (4)— “(5) (a) Where at any time— (i) a chargeable event, being a chargeable event (in this subsection referred to as a ‘relevant event’) within the meaning of section 730C(1)(a)(iv), occurs in relation to a life policy which commenced before 1 May 2005, (ii) immediately before that time the assurance company that commenced the life policy does not have in its possession a declaration in relation to the policy of the kind referred to in subsection (2), and (iii) the permanent address of the policyholder, as stated in the policy, is not in the State and the assurance company does not have reasonable grounds to believe that the policyholder is resident in the State, then the assurance company may elect to be treated in relation to that chargeable event for the purposes of subsection (2) as if, immediately before that time, the assurance company was in possession of a declaration in relation to the policy of the kind referred to in that subsection.
\n(b) Where at any time— (i) a relevant event occurred in relation to a life policy and a chargeable event, not being a relevant event, subsequently occurs in relation to the policy, (ii) this subsection applied to the relevant event in accordance with paragraph (a), and (iii) immediately before that time the assurance company that commenced the life policy does not have in its possession a declaration in relation to the policy of the kind referred to in subsection (2), then paragraph (a) shall be deemed not to have applied to the relevant event and any appropriate tax payable by virtue of a gain arising under this section shall be due and payable as if paragraph (a) had not been enacted.”, (c) in section 730E(2)(a) by adding “at or about the time of the inception of the life policy” after “policyholder”, and (d) in section 730F(3)(a)(ii) by inserting the following after clause (I): “(Ia) is the ending of a relevant period in accordance with section 730C(1)(a)(iv), or”.
\nAmendment of section 747E (disposal of an interest in offshore funds) of Principal Act.
\n43.—(1) Section 747E (inserted by the Finance Act 2001 ) of the Principal Act is amended in subsection (3) by substituting “for the purposes of the Tax Acts and the Capital Gains Tax Acts” for “accordingly for the purposes of this Chapter”.
\nCommon contractual funds.
\n44.—The Principal Act is amended— (a) in the definition of “collective investment undertaking” in section 172A(1)(a)— (i) by deleting “or” in subparagraph (ii), (ii) by inserting “or” after “ Finance Act, 2000 ),” in subparagraph (iii), and (iii) by inserting the following after subparagraph (iii): “(iv) a common contractual fund within the meaning of section 739I (inserted by the Finance Act 2005),”, (b) in the definition of “investment undertaking” in section 246(1)— (i) by deleting “or” in paragraph (b), (ii) by substituting “section 739B, or” for “section 739B;” in paragraph (c), and (iii) by inserting the following after paragraph (c): “(d) a common contractual fund within the meaning given to it in section 739I (inserted by the Finance Act 2005);”, (c) in section 739C— (i) in subsection (1) by deleting “, subject to subsection (1A),”, and (ii) by deleting subsection (1A), and (d) by inserting the following after section 739H— “Common contractual funds.
\n739I.—(1) (a) In this section ‘common contractual fund’ means— (i) a collective investment undertaking being an unincorporated body established by a management company under which the participants by contractual arrangement participate and share in the property of the collective investment undertaking as co-owners, where it is expressly stated under its deed of constitution to be established pursuant to an Act of the Oireachtas and which holds an authorisation issued in accordance with such Act and which is not established pursuant to Council Directive No. 85/611/EEC of 20 December 19851 , as amended by Council Directive No. 88/220/EEC of 22 March 19882 and Directive No. 95/26/EC of the Council and of the European Parliament of 29 June 19953 , or (ii) an investment undertaking within the meaning of paragraph (b) of the definition of ‘investment undertaking’ which is constituted otherwise than under trust law or statute law. (b) For the purposes of this section the definitions of ‘relevant gains’, ‘relevant income’, ‘relevant payment’, ‘relevant profits’, ‘unit’ and ‘unit holder’ shall apply, with any necessary modifications, to a collective investment undertaking within the meaning of paragraph (i) of the definition of ‘common contractual fund’ as they apply to an investment undertaking within the meaning of paragraph (b) of the definition of ‘investment undertaking’.
\nTreatment of leasing.
\n45.—(1) The Principal Act is amended— (a) in section 396A(1) by substituting the following for the definition of “relevant trading loss”: “ ‘relevant trading loss’, in relation to an accounting period of a company, means a loss incurred in the accounting period in a trade carried on by the company, other than— (a) so much of the loss as is a loss incurred in an excepted trade within the meaning of section 21A, and (b) any amount which is or would, if subsection (8) of section 403 had not been enacted, be the relevant amount of the loss for the purposes of subsection (4) of that section.”, (b) in section 396B(1), in the definition of “relevant trading loss”, by deleting the words after “section 396A”, (c) in section 403(4)(a)(ii) by substituting “group relief except to the extent that it could be set off under section 420A against income of a trade of leasing carried on by the claimant company if paragraph (b) of the definition of relevant trading loss in section 420A were deleted” for “group relief”, (d) in section 420A(1) by substituting the following for the definition of “relevant trading loss”: “ ‘relevant trading loss’, in relation to an accounting period of a company, means a loss incurred in the accounting period in a trade carried on by the company, other than— (a) so much of the loss as is a loss incurred in an excepted trade within the meaning of section 21A, and (b) any amount which is or would, if subsection (8) of section 403 had not been enacted, be the relevant amount of the loss for the purposes of subsection (4) of that section.”, and (e) in section 420B, in the definition of “relevant trading loss”, by deleting the words after “section 396A”.
\nTreatment of certain dividends.
\n46.—(1) The Principal Act is amended— (a) in section 17 by inserting the following after subsection (2): “(3) Subsection (1) shall not apply to a banker by virtue only of the clearing of a cheque, or the arranging for the clearing of a cheque, by the banker.”, and (b) in section 62— (i) by renumbering the existing provision as subsection (1) of that section, and (ii) by inserting the following after subsection (1): “(2) This section does not apply to a banker by virtue only of the clearing of a cheque, or the arranging for the clearing of a cheque, by the banker.”.
\nDividend withholding tax.
\n47.—(1) Chapter 8A (inserted by the Finance Act 1999 ) of Part 6 of the Principal Act is amended— (a) in section 172A(1)(a) by inserting the following definitions after the definition of “pension scheme”: “ ‘PRSA administrator’ has the same meaning as in section 787A; ‘PRSA assets’ has the same meaning as in section 787A;”, and (b) in section 172C— (i) in subsection (2)— (I) by inserting the following paragraph after paragraph (ba): “(bb) a PRSA administrator who is receiving the relevant distribution as income arising in respect of PRSA assets, and has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 10 of Schedule 2A,”, and (II) by inserting the following paragraph after paragraph (da): “(db) a unit trust to which section 731(5)(a) applies and which has made a declaration to the relevant person in relation to the relevant distribution in accordance with paragraph 11 of Schedule 2A,”, and (ii) in subsection (3) by inserting the following paragraphs after paragraph (c): “(ca) a PRSA administrator who receives a relevant distribution as income arising in respect of PRSA assets, (cb) a unit trust to which section 731(5)(a) applies which receives a relevant distribution in relation to units in that unit trust,”.
\nDeclaration to be made by exempt unit trust 11. The declaration referred to in section 172C(2)(db) shall be a declaration in writing to the relevant person which— (a) is made by the person (in this paragraph referred to as the ‘declarer’) beneficially entitled to the relevant distributions in respect of which the declaration is made, (b) is signed by the declarer, (c) is made in such form as may be prescribed or authorised by the Revenue Commissioners, (d) declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distribution is a person referred to in section 172C(2)(db), (e) contains the name and tax reference number of the person, (f) contains a statement that, at the time when the declaration is made, the relevant distribution in respect of which the declaration is made will be applied as income of an exempt unit trust to which section 731(5)(a) applies, (g) contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the relevant person in relation to the relevant distribution accordingly, and (h) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.”.
\nCorporation Tax Generally accepted accounting standards.
\n48.—(1) The Principal Act is amended— (a) in section 4— (i) in subsection (1)— (I) by inserting the following after the definition of “franked investment income”: “ ‘generally accepted accounting practice’ means— (a) in relation to the affairs of a company or other entity that prepares accounts (in this section referred to as ‘IAS accounts’) in accordance with international accounting standards, generally accepted accounting practice with respect to such accounts; (b) in any other case, Irish generally accepted accounting practice;”, and (II) by inserting the following after the definition of “interest”: “ ‘international accounting standards’ means the international accounting standards, within the meaning of Regulation (EC) No. 1606/2002 of the European Parliament and the Council of 19 July 2002 on the application of international accounting standards (in this section referred to as ‘the Regulation’); ‘Irish generally accepted accounting practice’ means generally accepted accounting practice with respect to accounts (other than IAS accounts) of companies incorporated or formed under the laws of the State, being accounts that are intended to give a true and fair view;”, and (ii) by inserting the following after subsection (6): “(7) For the purposes of this section, where the European Commission in accordance with the Regulation adopts an international accounting standard with modifications, then as regards matters covered by that standard— (a) generally accepted accounting practice with respect to IAS accounts shall be regarded as permitting the use of the standard either with or without the modifications, and (b) accounts prepared on either basis shall be regarded as prepared in accordance with international accounting standards.”, (b) in Chapter 5 of Part 4, by inserting the following after section 76: “Computation of profits or gains of a company - accounting standards.
\n76A.—(1) For the purposes of Case I or II of Schedule D the profits or gains of a trade or profession carried on by a company shall be computed in accordance with generally accepted accounting practice subject to any adjustment required or authorised by law in computing such profits or gains for those purposes.
\nTreatment of unrealised gains and losses in certain cases.
\n76B.—(1) (a) In this section and paragraph 4 of Schedule 17A, ‘fair value’, ‘financial asset’ and ‘financial liability’ have the meanings assigned to them by international accounting standards. (b) For the purposes of this section, section 76A and paragraph 4 of Schedule 17A— (i) references to profits or gains include references to losses, and (ii) the amount of a loss incurred in a trade or profession in an accounting period shall be computed in like manner as profits or gains from the trade or profession in the accounting period would have been computed.
\nUse of different accounting policies within a group of companies.
\n76C.—(1)(a) In this section ‘tax advantage’ means— (i) a reduction, avoidance or deferral of any charge or assessment to tax, including any potential or prospective charge or assessment, or (ii) a refund of or a payment of an amount of tax, or an increase in an amount of tax refundable or otherwise payable to a person, including any potential or prospective amount so refundable or payable. (b) For the purposes of this section, a series of transactions is not prevented from being a series of transactions in relation to companies by reason only of the fact that one or more of the following is the case— (i) there is no transaction in the series to which both those companies are parties; (ii) that parties to any arrangement in pursuance of which the transactions in the series are entered into do not include one or both of those companies; (iii) there are one or more transactions in the series to which neither of those companies is a party.
\n(b) Any amount shall not be regarded by virtue of paragraph (a) as deductible in computing profits or gains of a company for the purposes of Case I or II of Schedule D for an accounting period to the extent that— (i) a deduction has been made in respect of that amount in computing such profits or gains for a previous accounting period, or (ii) the company has benefited from a tax relief under any provision in respect of that amount for a previous accounting period.”, (d) in section 110, by adding the following after subsection (5): “(6) (a) Subject to paragraph (b), section 76A shall have effect in relation to a qualifying company as it would if, in section 4, the following were substituted for the definition of generally accepted accounting practice: ‘ “generally accepted accounting practice” means Irish generally accepted accounting practice as it applied for a period of account ending on 31 December 2004.’. (b) A qualifying company may, as respect any accounting period, by notice in writing given to the inspector by the specified return date (within the meaning of section 950) for the accounting period, elect that this subsection shall not apply as respects that or any subsequent accounting period; and any election under this paragraph shall be irrevocable. (c) Schedule 17A shall apply with any necessary modifications to a company which makes an election under paragraph (b).”, (e) in section 321 by inserting the following after subsection (2): “(2A) Subject to section 316, references to expenditure in relation to an asset— (a) include expenditure on labour costs including emoluments paid to employees of the company, and (b) do not include interest payable, which for accounting purposes is taken into account by the company in determining the value of the asset.”, (f) in section 766(1)(a) in the definition of “expenditure on research and development”— (i) by substituting the following for subparagraph (i): “(i) which— (I) is allowable for the purposes of tax in the State as a deduction in computing income from a trade (otherwise than by virtue of section 307), or would be so allowable but for the fact that for accounting purposes it is brought into account in determining the value of an intangible asset, or (II) is relieved under Part 8,”, and (ii) by deleting “and” where it last occurs in clause (I) and by inserting the following after that clause: “(IA) expenditure by a company on research and development shall not include any amount of interest notwithstanding that such interest is brought into account by the company in determining the value of an asset, and”,
\nand (g) by inserting the following after Schedule 17: “Section 76A.
\nSCHEDULE 17A Accounting Standards Interpretation 1. In this Schedule ‘relevant accounting standards’ means— (a) international accounting standards, or (b) as regards the matters covered by those published standards, Irish generally accepted accounting practice which is based on published standards— (i) which are stated so as to embody, in whole or in part, international accounting standards, and (ii) the application of which would produce results which are substantially the same as results produced by the application of international accounting standards.
\nTransitional Measures (amounts receivable and deductible) 2. (1) In this paragraph— ‘deductible amount’, in relation to a company, means the aggregate of the amounts of— (a) so much of any amounts receivable by the company which falls to be taken into account as a trading receipt in computing the profits or gains for the purposes of Case I or II of Schedule D of the company for an accounting period computed in accordance with relevant accounting standards as was also taken into account as a trading receipt in computing such profits or gains of the company for any accounting period ending before the first accounting period in respect of which such profits or gains of the company were so computed, and (b) so much of an expense incurred by the company, being an expense which would have been deductible in computing profits or gains for the purposes of Case I or II of Schedule D of the company if the expense had been incurred in an accounting period for which such profits or gains were computed in accordance with relevant accounting standards, as— (i) was not deducted in computing the profits or gains for the purposes of Case I or II of Schedule D of the company for an accounting period ending before the first accounting period in respect of which such profits or gains of the company are computed in accordance with relevant accounting standards, and (ii) is not deductible in computing the profits or gains for the purposes of Case I or II of Schedule D of the company for any accounting period for which such profits or gains of the company are so computed; ‘taxable amount’, in relation to a company, means the aggregate of the amounts of— (a) so much of an amount receivable by the company, being an amount receivable which would have been taken into account as a trading receipt in computing the profits or gains for the purposes of Case I or II of Schedule D of the company if the amount had accrued in an accounting period for which such profits or gains were computed in accordance with relevant accounting standards, as is not so taken into account— (i) for an accounting period for which such profits or gains of the company are computed in accordance with relevant accounting standards, or (ii) for an accounting period ending before the first accounting period in respect of which such profits or gains are so computed, and (b) so much of an expense incurred by the company which is deductible in computing the profits or gains for the purposes of Case I or II of Schedule D of the company for an accounting period for which such profits or gains of the company are computed in accordance with relevant accounting standards as was deducted in computing such profits or gains of the company for any accounting period ending before the first accounting period of the company in respect of which such profits or gains were so computed.
\nTransitional Arrangements (bad debts) 3. (1) In this paragraph— ‘current bad debts provision’, in relation to a period of account of a company, means so much of the aggregate value of debts at the end of the period of account as represents the extent to which they are estimated to be impaired in accordance with relevant accounting standards; ‘first relevant period of account’, in relation to a company, means the first period of account in respect of which the company prepares its accounts in accordance with relevant accounting standards; ‘opening bad debts provision’, in relation to a company, means so much of the aggregate value of debts at the beginning of the first relevant period of account of the company as represents the extent to which they are estimated to be impaired in accordance with those standards; ‘specific bad debts provision’, in relation to a company, means the aggregate of the amounts of doubtful debts which were respectively estimated to be bad at the end of the period of account immediately preceding the first relevant period of account of the company.
\nTransitional Measures (gains and losses in financial instruments) 4. (1) In this paragraph— ‘changeover day’, in relation to a company, means the last day of the accounting period immediately preceding the first accounting period of the company in respect of which profits or gains for the purposes of Case I or II of Schedule D of the company are computed in accordance with relevant accounting standards which are, or include, relevant accounting standards in relation to profits or gains or losses on financial assets and financial liabilities; ‘deductible amount’, in relation to a company, means the aggregate of— (a) so much of any amount of loss accruing on or before the changeover day on a financial asset or financial liability of the company, being a loss which had not been realised on or before that day and which would have been taken into account in computing profits or gains for the purposes of Case I or II of Schedule D of the company if it had accrued in an accounting period commencing after the changeover day, as, apart from this paragraph, would not be so taken into account for any accounting period of the company, and (b) so much of any amount of profits or gains, accruing and not realised in a period or periods (in this clause referred to as the “first-mentioned period or periods”) ending on or before the changeover day on a financial asset or financial liability of the company, which falls to be taken into account in computing the profits or gains for the purposes of Case I or II of Schedule D of the company for an accounting period or periods commencing before the changeover day as would, apart from this paragraph, be taken into account twice in computing profits or gains for the purposes of Case I or II of Schedule D of the company, by virtue of a profit, gain or loss, accruing in a period which includes the first-mentioned period or periods, being taken into account in computing profits or gains for the purposes of Case I or II of Schedule D of the company for an accounting period commencing after the changeover day; ‘taxable amount’, in relation to a company, means the aggregate of— (a) so much of any amount of profits or gains accruing on or before the changeover day on a financial asset or financial liability of the company, being profits or gains which had not been realised on or before that day and which would have been taken into account in computing the profits or gains for the purposes of Case I or II of Schedule D of the company if they had accrued in an accounting period commencing after the changeover day, as apart from this paragraph, would not be so taken into account for any accounting period of the company, and
\n(b) so much of any amount of loss, accruing and not realised in a period or periods (in this clause referred to as the “first-mentioned period or periods”) ending on or before the changeover day on a financial asset or financial liability of the company, which falls to be taken into account in computing the profits or gains for the purposes of Case I or II of Schedule D of the company for an accounting period or periods commencing before the changeover day as would, apart from this paragraph, be taken into account twice in computing profits or gains for the purposes of Case I or II of Schedule D of the company, by virtue of a profit, gain or loss, accruing in a period which includes the first-mentioned period or periods, being taken into account in computing profits or gains for the purposes of Case I or II of Schedule D of the company for an accounting period commencing after the changeover day.
\nAmendment of section 243 (allowance of charges on income) of Principal Act.
\n49.—(1) Section 243 of the Principal Act is amended— (a) in subsection (1A) by inserting “has the meaning assigned to it by section 845A and” after “ ‘bank’ ”, (b) in subsection (2) by inserting “in accordance with section 420” after “group relief”, (c) in subsection (4)(b)— (i) by substituting “interest payable on an advance” for “interest payable in the State on an advance”, and (ii) in subparagraphs (i) and (ii) by substituting “in a Member State of the European Communities” for “in the State” in each place where it occurs, and (d) in subsection (5)— (i) in paragraph (a) by substituting “as the case may be,” for “as the case may be, or”, (ii) in paragraph (b) by substituting “the State, or” for “the State.”, and (iii) by inserting the following after paragraph (b): “(c) to which section 238 or 246(2) do not apply by virtue of section 267I.”.
\nAmendment of Chapter 6 (Implementation of Council Directive 2003/49/EC of 3 June 2003 on a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States) of Part 8 of Principal Act.
\n50.—(1) Chapter 6 of Part 8 of the Principal Act is amended by inserting the following section after section 267K: “Application of this Chapter to certain payments made to companies in Switzerland.
\n267L.—(1) This section applies to a payment, being interest or royalties, made to or for the benefit of— (a) where paragraph (b) does not apply, a company which— (i) is the beneficial owner of the interest, or as the case may be the royalties, (ii) is, by virtue of the law of Switzerland, resident for the purposes of tax in Switzerland, and (iii) is not treated, by virtue of any arrangements made by the government of Switzerland with the government of any territory for the purposes of tax, as resident in any territory which is not— (I) a Member State of the European Communities, or (II) Switzerland, or (b) a permanent establishment situated in Switzerland through which a company carries on business in Switzerland, being a permanent establishment which would, in accordance with the Directive, be treated as the beneficial owner of the interest, or as the case may be the royalties.
\nAmendment of Chapter 2 (Miscellaneous) of Part 35 of Principal Act.
\n51.—(1) Chapter 2 of Part 35 of the Principal Act is amended by inserting the following section after section 831: “Treatment of distributions to certain parent companies.
\n831A.—(1) (a) In this section— ‘company’, in relation to a company that is resident for the purposes of tax in Switzerland, means a company which— (i) takes one of the forms specified in Article 15 of the Agreement attached to the Council Decision (2004/911/EC) of 2 June 2004 on the signing and conclusion of the Agreement between the European Community and the Swiss Confederation providing for measures equivalent to those laid down in Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments and the accompanying Memorandum of Understanding1 , and (ii) is subject to tax in Switzerland without being exempt; ‘parent company’ means a company which controls not less than 25 per cent of the voting power in another company; ‘tax’, in relation to Switzerland, means any tax imposed in Switzerland which corresponds to income tax or corporation tax in the State. (b) For the purposes of this section a company shall be a subsidiary of another company which holds voting rights in it where the other company's holding of those rights is sufficient for that other company to be a parent company.
\nAmendment of section 410 (group payments) of Principal Act.
\n52.—(1) Section 410 of the Principal Act is amended— (a) in subsection (4) by substituting “a relevant Member State” for “the State”, and (b) by substituting the following for subsection (5): “(5) This section shall apply to any payments which— (a) for the purposes of corporation tax, are charges on income of the company making them or would be so if they were not deductible in computing profits or any description of profits or if section 243(7) did not apply to them, and (b) where the company receiving the payments is not resident in the State, are taken into account in computing income of that company chargeable to tax in a relevant Member State, but shall not apply to payments received by a company on any investments if a profit on the sale of those investments would be treated as a trading receipt of that company.”.
\nAmendment of section 448 (relief from corporation tax) of Principal Act.
\n53.—(1) Section 448 of the Principal Act is amended— (a) by substituting the following for subsection (1): “(1)(a) For the purposes of this section, references to ‘charges on income paid for the purposes of the sale of goods’, where they are in the course of a trade in an accounting period, shall be taken to be such amount as would be the amount of the income from the sale of goods in that period if, notwithstanding subsection (4), the reference to ‘the company's income for the relevant accounting period from the sale in the course of the trade mentioned in that subsection of goods and merchandise’ for the purposes of subsection (3), were to the amount of so much of the charges on income paid wholly and exclusively for the purposes of the trade in that period as appears to the inspector or on appeal to the Appeal Commissioners to be referable to charges on income paid for the purpose of the sale of goods and merchandise. (b) For the purposes of this section, references to a ‘loss from the sale of goods’, where they are in the course of a trade in an accounting period, shall be such amount as would be the amount of the income from the sale of goods in that period if, notwithstanding subsection (4), the reference to ‘the company's income for the relevant accounting period from the sale in the course of the trade mentioned in that subsection of goods and merchandise’ for the purposes of subsection (3), were to the amount of so much of the loss, computed as for the purposes of section 396(2), from the trade in the period as appears to the inspector or on appeal to the Appeal Commissioners to be referable to a loss incurred in the sale of goods and merchandise, but a loss such as is mentioned in section 407(4)(b) shall not be a loss from the sale of goods. (c) For the purposes of this section references to an ‘excess of charges on income paid for the purpose of the sale of goods’, where they are in the course of the trade in an accounting period, shall be so much of an amount, being the amount by which the charges on income paid by a company for the purpose of the sale of goods in the course of the trade in that period exceed the income from the sale of goods in the course of the trade in that period, as does not exceed the excess referred to in section 420(6) as computed for the company for that period. (d) (i) For the purposes of this section, ‘relevant corporation tax’ means the corporation tax which, apart from this section, sections 22A, 239, 241, 440, 441, 449, 644B and 827 and paragraphs 16 and 18 of Schedule 32, would be chargeable for the relevant accounting period exclusive of the corporation tax chargeable on the part of the company's profits attributable to chargeable gains for that period.
\n(ii) For the purpose of subparagraph (i), the part of the company's profits attributable to chargeable gains for the relevant accounting period 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 chargeable gains before 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.”, (b) in subsection (3), by substituting the following for paragraph (b): “(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.”, (c) in subsection (4)— (i) in paragraph (i) by deleting “or 454”, (ii) in paragraph (ii) by deleting “or 455”, and (iii) in paragraph (iii) by deleting “or 456”, and (d) in subsection (5A)(b) by deleting subparagraph (i).
\nAmendment of section 626B (exemption from tax in the case of gains on certain disposals of shares) of Principal Act.
\n54.—(1) Section 626B of the Principal Act is amended— (a) in subsection (1)(a) by deleting the definition of “relevant time”, (b) in subsection (1)(b)(i) by substituting “5 per cent” for “10 per cent” in clauses (I), (II) and (III), and (c) in subsection (2) by substituting the following for paragraph (a): “(a) the disposal by the investor company is at a time— (i) when the investor company is a parent company of the investee company, or (ii) within the 2 year period beginning on the most recent day on which the investor company was a parent company of the investee company,”.
\nCesser of section 686 (reduction of corporation tax) of Principal Act.
\n55.—Section 686 of the Principal Act shall cease to have effect as respects accounting periods ending on or after 3 February 2005.
\nCapital Gains Tax Amendment of section 980 (deduction from consideration on disposal of certain assets) of Principal Act.
\n56.—(1) Section 980 of the Principal Act is amended— (a) by inserting the following after subsection (3): “(3A) This section shall not apply to a disposal by a body specified in Schedule 15.”, (b) in subsection (4)(c) in the definition of “house” by substituting “section 372AK” for “section 329”, and (c) in subsection (9) by inserting the following after paragraph (d): “(e) Where a person acquiring an asset has paid to the Collector-General an amount of capital gains tax in accordance with paragraph (a)(II) and recovered a sum of that amount from the person disposing of the asset, then, on proof being given in that regard, appropriate relief shall be given to the person disposing of the asset, whether by discharge, repayment or otherwise.”.
\nAmendment of Schedule 15 (list of bodies for purposes of section 610) to Principal Act.
\n57.—(1) Schedule 15 to the Principal Act is amended in Part 1— (a) by substituting “7. The Health Service Executive.” for “7. A health board.”, and (b) by substituting the following for paragraphs 12 to 17: “12. Dublin Regional Tourism Authority Limited.
\nAmendment of section 608 (superannuation funds) of Principal Act.
\n58.—Section 608 of the Principal Act is amended by inserting the following after subsection (2): “(2A) A gain shall not be a chargeable gain if accruing to a person who is exempt from income tax under section 790B.”.
\nExcise
\nAlcohol Products Tax Amendment of section 134 (power to stop vehicles) of Finance Act 2001.
\n59.—
\nof the Finance Act 2001 is amended in subsection (1) by substituting the following for paragraph (a): “(a) that such officer, or any officer accompanying such officer, may exercise any power conferred on them by section 135 in relation to excisable products, any other products chargeable with a duty of excise, or any prohibited goods, where there are reasonable grounds to believe that such products or goods are being transported in or on such vehicle, or”.
\nAmendment of section 139 (power of arrest and detention of persons) of Finance Act 2001.
\n60.—
\nof the Finance Act 2001 is amended by substituting the following for subsection (1): “(1) Where an officer or a member of the Garda Síochána has reasonable grounds to suspect that a person is committing or has committed an offence under— (a) section 119, (b) section 102
\nAmendment of section 73 (interpretation) of Finance Act 2003.
\n61.—
\nof the Finance Act 2003 is amended in subsection (1)— (a) by inserting the following definition after the definition of “Commissioners”: “ ‘counterfeit goods’ has the same meaning that it has in Article 2 of Council Regulation (EC) No. 1383/2003 of 22 July 20031 ;”, (b) by inserting the following definition after the definition of “Directive”: “ ‘illicit alcohol product’ means any alcohol product— (a) which has been produced or processed in the State otherwise than in a tax warehouse, except where section 77(f), or subsection (2) or (3) of section 109 of the Finance Act 2001 applies, or (b) which is counterfeit goods;”, (c) by substituting the following for the definition of “prohibited goods”: “ ‘prohibited goods’ means any machinery, apparatus, equipment, vessel, materials, substance or other thing which is being used, or was used, or is intended to be used, either in the production or processing of any illicit alcohol product or in the removal from any alcohol product of any denaturant;”.
\nAmendment of section 79 (offences and penalties) of Finance Act 2003.
\n62.—The Finance Act 2003 is amended, in Chapter 1 of Part 2, by substituting the following for section 79: “79.—(1) Except where subsection (2), (3) or (5) applies, it is an offence under this subsection for any person to contravene or fail to comply with any provision of this Chapter or any regulation made under section 81 or any condition imposed under this Chapter or under such regulation in relation to such provision.
\nAmendment of Chapter 1 of Part 2 (alcohol products tax) of Finance Act 2003.
\n63.—Chapter 1 of Part 2 of the Finance Act 2003 is amended by inserting the following section after section 78: “Relief for small breweries.
\n78A.—(1) A relief of half the amount of alcohol products tax paid on beer shall, subject to subsection (3) and to such conditions as the Commissioners may prescribe or otherwise impose, be granted on a quantity of beer, not exceeding 20,000 hectolitres in a calendar year, brewed in the European Community in a brewery— (a) in which the quantity of beer brewed in the previous year has not exceeded 20,000 hectolitres, (b) which is legally and economically independent of any other brewery, (c) the premises of which are situated physically apart from those of any other brewery, and (d) in which less than 50 per cent of the beer brewed in the previous calendar year has been brewed under a licence, franchise or contract arrangement for another brewery.
\nMineral Oil Tax Rates of mineral oil tax.
\n64.—The Finance Act 1999 is amended— (a) with effect as on and from 1 April 2005, by substituting the following for Schedule 2 to that Act, as amended by section 48 of the Finance Act 2004 : “SCHEDULE 2 Rates of Mineral Oil Tax (With effect as on and from 1 April 2005) Description of Mineral Oil Rate of Tax Light Oil:
\nLeaded petrol €553.04 per 1,000 litres Unleaded petrol €442.68 per 1,000 litres Super unleaded petrol €547.79 per 1,000 litres Aviation gasoline €276.52 per 1,000 litres Heavy Oil:
\nUsed as a propellant with a maximum sulphur content of 50 milligrammes per kilogramme €368.05 per 1,000 litres Other heavy oil used as a propellant €420.44 per 1,000 litres Kerosene used other than as a propellant €31.74 per 1,000 litres Fuel oil €14.78 per 1,000 litres Other heavy oil €47.36 per 1,000 litres Liquefied Petroleum Gas:
\nUsed as a propellant €63.59 per 1,000 litres Other liquefied petroleum gas €20.86 per 1,000 litres Substitute Fuel:
\nUsed as a propellant €368.05 per 1,000 litres Other substitute fuel €47.36 per 1,000 litres ”. and (b) with effect as on and from such day as the Minister may appoint by order under section 70 , by substituting the following for Schedule 2 (inserted by subsection (a)) to that Act: “SCHEDULE 2 Rates of Mineral Oil Tax Description of Mineral Oil Rate of Tax Light Oil:
\nLeaded petrol €553.04 per 1,000 litres Unleaded petrol with a maximum sulphur content of 10 milligrammes per kilogramme €442.68 per 1,000 litres Other unleaded petrol €484.00 per 1,000 litres Super unleaded petrol €547.79 per 1,000 litres Aviation gasoline €276.52 per 1,000 litres Heavy Oil:
\nUsed as a propellant with a maximum sulphur content of 10 milligrammes per kilogramme €368.05 per 1,000 litres Other heavy oil used as a propellant €420.44 per 1,000 litres Kerosene used other than as a propellant €31.74 per 1,000 litres Fuel oil €14.78 per 1,000 litres Other heavy oil €47.36 per 1,000 litres Liquefied Petroleum Gas:
\nUsed as a propellant €63.59 per 1,000 litres Other liquefied petroleum gas €20.86 per 1,000 litres Substitute Fuel:
\nUsed as a propellant €368.05 per 1,000 litres Other substitute fuel €47.36 per 1,000 litres Coal:
\nFor business use €4.18 per tonne For other use €8.36 per tonne ”.
\nAmendment of section 94 (interpretation) of Finance Act 1999.
\n65.—
\nof the Finance Act 1999 is amended— (a) in subsection (1): (i) by substituting the following definition for the definition of “authorised warehousekeeper”: “ ‘authorised warehousekeeper’ means a person authorised by the Commissioners under section 109 of the Finance Act 2001 to produce, process, hold, receive or dispatch mineral oil under a suspension arrangement;”, (ii) by inserting the following definitions after the definition of “biomass”: “ ‘business use’, subject to Article 11 of the Directive, means use by a business entity which independently carries out, in any place, the supply of goods and services; ‘charitable organisation’ means any body of persons or trust established for charitable purposes; ‘coal’ includes lignite and solid fuels manufactured from coal or lignite;”, (iii) by substituting the following definition for the definition of “the Directive”: “ ‘the Directive’ means Council Directive No. 2003/96/EC of 27 October 20031 ;”, (iv) by inserting the following definition after the definition of “the Directive”: “ ‘dual use’ means use both as a heating fuel and for purposes other than as a motor fuel and heating fuel and includes use for chemical reduction and in electrolytic and metallurgical processes;”, (v) by inserting the following definition after the definition of “dumper”: “ ‘energy intensive business’ means any business entity where either the purchases of energy products and electricity amount to at least 3 per cent of the production value, or the mineral oil tax payable amounts to at least 0.5 per cent of the added value;”, (vi) by inserting the following definition after the definition of “glasshouse”: “ ‘greenhouse gas emissions permit’ has the meaning assigned to it by Article 2(1) of the European Communities (Greenhouse Gas Emissions Trading) Regulations 2004 ( S.I. No. 437 of 2004 );”, (vii) by inserting the following definition after the definition of “horticultural producer”: “ ‘household’ means a premises used as a dwelling;”, (viii) by substituting the following definition for the definition of “mineral oil”: “ ‘mineral oil’ means hydrocarbon oil, liquefied petroleum gas, substitute fuel, coal and additives;”, (ix) by inserting the following definition after the definition of “mineral oil”: “ ‘mineralogical process’ means a process classified in the NACE nomenclature under code DI 26 ‘manufacture of other non-metallic mineral products’ in Council Regulation (EEC) No. 3037/90 of 9 October 19902 on the statistical classification of economic activities in the European Community;”,
\nand (x) by substituting the following definition for the definition of “tax warehouse”: “ ‘tax warehouse’ means a premises or place approved by the Commissioners under section 109 of the Finance Act 2001 where mineral oil is produced, processed, held, received or dispatched under a suspension arrangement by an authorised warehousekeeper in the course of business;”, (b) by inserting the following subsections after subsection (2): “(3) A word or expression that is used in this Chapter and which is also used in Part 2 of the Finance Act 2001 has, unless a meaning is assigned to it by subsection (1) or (2) or the contrary intention otherwise appears, the same meaning in this Chapter as it has in that Part.
\nAmendment of section 95 (charge of tax) of Finance Act 1999.
\n66.—
\nof the Finance Act 1999 is amended— (a) by substituting the following for subsection (2): “(2) For the purposes of charging mineral oil tax on mineral oil other than coal the volume of mineral oil shall be ascertained at a temperature of 15° Celsius and in the manner specified by the Commissioners.”, and (b) by substituting the following for subsection (4): “(4) Notwithstanding the generality of subsection (1), only mineral oil coming within the definition of “energy products” in Article 2.1 of the Directive, substitute fuel and additives shall be subject to mineral oil tax.”.
\nAmendment of section 100 (reliefs from mineral oil tax for certain mineral oils) of Finance Act 1999.
\n67.—
\nof the Finance Act 1999 is amended— (a) in subsection (1) by substituting the following for paragraph (m) (inserted by the Finance Act 2004 ): “(m) heavy oil which is intended for use or which has been used in aircraft engines during testing and maintenance of such engines; (n) mineral oil present, at the time of importation into the State from another Member State, in the standard tank of a mechanically propelled vehicle, including a private pleasure craft, where such oil has not been released for use as a propellant but where such oil is permitted, under the laws in force in such Member State, to be used in such vehicle.”, and (b) by substituting, from such day as the Minister may appoint by order under section 70 , the following for subsections (2) and (3): “(2) Without prejudice to subsection (1), and subject to such conditions as the Commissioners may prescribe or otherwise impose, a relief from mineral oil tax shall be granted in respect of coal which is shown to the satisfaction of the Commissioners to be intended for use or to have been used— (a) for the generation of electricity, (b) for combined heat and power generation, (c) for agricultural, horticultural or piscicultural works, and in forestry, (d) for dual use, (e) for mineralogical processes, (f) for household use, (g) by a charitable organisation, (h) as fuel for trains, (i) by an energy intensive business which holds a greenhouse gas emissions permit.
\nAmendment of section 103 (presumptions in certain proceedings) of Finance Act 1999.
\n68.—
\nof the Finance Act 1999 is amended in subsection (4) (inserted by section 95 of the Finance Act 2003 ) by substituting “50 milligrammes” for “350 milligrammes”.
\nAmendment of Chapter 1 (mineral oil tax) of Part 2 of Finance Act 1999.
\n69.—Chapter 1 of Part 2 of the Finance Act 1999 is amended— (a) by inserting the following after section 95: “Liability to mineral oil tax on coal.
\n95A.—Liability to mineral oil tax on coal shall arise at the time such coal is the subject of final delivery, and shall be paid by the person to whom it is delivered.”, and (b) by inserting the following after section 101: “Registration.
\n101A.—Every person who makes final delivery of coal, otherwise than to households or to charitable organisations, and every person who is liable to pay mineral oil tax on coal shall register for that purpose with the Commissioners in accordance with such procedures as the Commissioners may prescribe or otherwise impose.”.
\nCommencement.
\n70.—With the exception of sections 64(a), 67(a) and 68 this Chapter comes into operation on such day as the Minister for Finance may appoint by order, and different days may be so appointed for different provisions or for different purposes.
\nTobacco Products Tax Interpretation (Chapter 3).
\n71.—(1) In this Chapter and in Schedule 2, except where the context otherwise requires— “authorised warehousekeeper” means a person authorised by the Commissioners to produce, process, hold, receive or dispatch in the course of business, excisable products under a suspension arrangement; “cigarettes” means— (a) rolls of tobacco capable of being smoked as they are and which are not cigars, (b) rolls of tobacco which, by simple non-industrial handling, are inserted into cigarette paper tubes or wrapped in cigarette paper, (c) products consisting in whole or in part of substances other than tobacco but otherwise conforming to the criteria set out in paragraph (a) or (b), and to which Council Directive No. 95/59/EC of 27 November 19951 relates; “cigars” means— (a) rolls of tobacco made entirely of natural tobacco, (b) rolls of tobacco with an outer wrapper of natural tobacco, (c) rolls of tobacco with— (i) a threshed blend filler, and (ii) an outer wrapper of the normal colour of a cigar covering the product in full, including where appropriate the filter but not, in the case of tipped cigars, the tip and a binder, both being of reconstituted tobacco, where the unit weight, excluding the filter or mouth-piece, is not less than 1.2 grammes and where the wrapper is fitted in spiral form with an acute angle of at least 30 degrees to the longitudinal axis of the cigar, (d) rolls of tobacco with— (i) a threshed blend filler, and (ii) an outer wrapper of the normal colour of a cigar of reconstituted tobacco, covering the product in full, including where appropriate the filter but not, in the case of tipped cigars, the tip, where the unit weight, excluding the filter or mouth-piece, is not less than 2.3 grammes and the circumference over at least one-third of the length is not less than 34 millimetres, (e) products consisting in part of substances other than tobacco but otherwise conforming to the criteria set out in paragraph (a), (b), (c) or (d) provided they have: (i) a wrapper of natural tobacco; (ii) a wrapper and binder both of reconstituted tobacco; or (iii) a wrapper of reconstituted tobacco, and to which Council Directive No. 95/59/EC of 27 November 1995 relates; “Commissioners” means the Revenue Commissioners; “Community” has the meaning assigned to it by section 96 of the Finance Act 2001 ; “fine-cut tobacco for the rolling of cigarettes” means smoking tobacco in which more than 25 per cent by weight of the tobacco particles have a cut width of less than 1 millimetre and to which Council Directive No. 95/59/EC of 27 November 1995 relates;
\n“materials” means tobacco in any form and any other substance to be used for incorporation in tobacco products; “Member State” means a Member State of the Community; “Minister” means the Minister for Finance; “officer” means an officer of the Commissioners; “prescribed” means specified in or determined in regulations made by the Commissioners under section 83 ; “reconstituted tobacco” means tobacco (whether or not on a backing) that is made by agglomerating tobacco dust or finely divided tobacco derived from tobacco leaves or tobacco refuse and is generally put up in the form of rectangular sheets or strip; “records” means any books, accounts, documents or other recorded information including information in a computer or in other nonlegible form; “release for consumption” means— (a) any departure, including irregular departure, from a suspension arrangement, (b) any manufacture, including irregular manufacture, of tobacco products outside a suspension arrangement, or (c) any importation of tobacco products, including irregular importation, where such tobacco products have not been placed under a suspension arrangement; “smoking tobacco” means— (a) tobacco which has been cut or otherwise split, twisted or pressed into blocks and which is capable of being smoked without further industrial processing, (b) tobacco refuse which is put up for retail sale and can be smoked and is not a cigar or cigarette, (c) products consisting in whole or in part of substances other than tobacco but otherwise conforming to the criteria set out in paragraph (a) or (b), and to which Council Directive No. 95/59/EC of 27 November 1995 relates; “specified tobacco products” means cigarettes and fine-cut tobacco for the rolling of cigarettes and any other tobacco products in respect of which an order under section 73 of this Chapter relates; “suspension arrangement” means an arrangement under which excisable products are produced, processed, held or moved, excise duty being suspended; “tax” means tobacco products tax imposed by section 72 ; “tax representative” means a person, established in the State, who is authorised by the Commissioners to act in the State as an agent on behalf of persons delivering excisable products from another Member State; “tax stamp” means a label issued by the Commissioners under section 73 of this Chapter for the purpose of collecting tobacco products tax; “tax warehouse” means a premises or place approved by the Commissioners, where excisable products are produced, processed, held, received or dispatched under a suspension arrangement by an authorised warehousekeeper in the course of business;
\n“tobacco products” means cigarettes, cigars, fine-cut tobacco for the rolling of cigarettes or other smoking tobacco except where such products contain no tobacco and are either— (a) used exclusively for medical purposes, or (b) products commonly known as herbal cigarettes or herbal smoking mixtures.
\nCharging and rates.
\n72.—In addition to any other duty that may be chargeable, and subject to the provisions of this Chapter and any regulations made under it, a duty of excise, to be known as tobacco products tax, shall be charged, levied and paid at the rates specified in Schedule 2 on all tobacco products— (a) produced in the State, or (b) imported into the State.
\nLiability and payment.
\n73.—(1) Liability for tobacco products tax arises at the time tobacco products are released for consumption.
\nDeferment of payment.
\n74.—The Commissioners may, subject to compliance with such conditions for securing payment of tobacco products tax as they may think fit to impose— (a) in respect of specified tobacco products where the issue of tax stamps arises in a period beginning on and including the fourth last day of a month up to and including the fifth last day of the subsequent month permit, subject to paragraph (b), payment of the amount referred to in section 73
\nAscertainment of retail prices of tobacco products.
\n75.—(1) Subject to subsection (2), where a rate of tobacco products tax is related to the price at which a tobacco product is sold by retail, that price shall be taken for the purposes of this Chapter to be the price at which the product and any packaging and any article or token, accompanying the product, are sold by retail.
\nAffixing of tax stamps.
\n76.—(1) With the exception of— (a) specified tobacco products to which section 104(2) of the Finance Act 2001 applies, (b) specified tobacco products being held or delivered under a suspension arrangement, (c) specified tobacco products where the payment of tax is permitted under section 73
\nRepayment or remission.
\n77.—(1) The Commissioners may, subject to compliance with such conditions (if any) as they consider appropriate to impose, repay or remit tobacco products tax or an amount paid or due on the issue of tax stamps in respect of— (a) tobacco products destroyed under administrative supervision, (b) denatured tobacco products used for industrial or horticultural purposes, (c) tobacco products remanufactured by the manufacturer, (d) tobacco products which have been shown to their satisfaction to have been intended solely for scientific tests or for tests connected with product quality, (e) tax stamps which have been shown to their satisfaction to either have been destroyed or to be damaged or otherwise unsuitable for the use for which they were issued, and (f) tax stamps which have been shown to their satisfaction to have been affixed to specified tobacco products which have been the subject of an irregularity, within the meaning of Article 20 of Council Directive No. 92/12/EEC of 25 February 19921 , in another Member State and where excise duty on such products has been paid in another Member State.
\nOffences in relation to tax stamps.
\n78.—(1) Except where subsection (4) or (5) applies, it is an offence under this subsection for any person to contravene or fail to comply with any provision of this Chapter or any regulation made under section 83 or any condition imposed under this Chapter or under such regulation in relation to such provision.
\nRetail price (offence and penalty).
\n79.—(1) A person shall not invite an offer to treat, offer for sale or sell by retail any packet of cigarettes at a price which is higher than— (a) in the case of cigarettes sold or to be sold by means of a coin-operated vending machine, the nearest multiple of 5 cent to the price, or (b) in all other cases, the price, being the price on the basis of which that part of tobacco products tax which is chargeable by reference to the price at which the cigarettes are sold by retail has been charged on the cigarettes in question.
\nAccount of materials.
\n80.—(1) Subject to subsection (2) the Commissioners may require a manufacturer of tobacco products to account to them to their satisfaction for all the materials received by such manufacturer and, in the case of materials not so accounted for, they may require such manufacturer to pay at the appropriate rate or rates tobacco products tax on such quantities of such tobacco products as, in their opinion, might reasonably be expected to be manufactured from those materials.
\nRepeals, revocations and savings.
\n81.—(1) The enactments set out in Parts 1 and 2 of Schedule 3 (in this Chapter referred to as the “repealed enactments”) are repealed in the case of those set out in Part 1, and revoked in the case of those set out in Part 2, to the extent mentioned in the third column of those Parts opposite the reference to the enactment concerned.
\nGeneral provisions and structure.
\n82.—(1) (a) Subject to paragraph (b) and to subsection (2), the provisions of the Customs Acts and of any instrument relating to duties of customs made under statute and not otherwise applied by this Chapter apply, with any necessary modifications, in relation to tobacco products tax imposed by section 72 on tobacco products imported into the State as they apply in relation to duties of customs. (b) Where there is a provision in this Chapter corresponding to a provision of the Customs Acts or of any instrument relating to duties of customs made under statute, the provision of the Customs Acts or of any such instrument does not apply in relation to tobacco products tax.
\nRegulations.
\n83.—(1) The Commissioners may make regulations for the purpose of giving full effect to the provisions of this Chapter.
\nContinuity.
\n84.—(1) The provisions of this Chapter shall apply subject to so much of any Act which contains provisions relating to or affecting excise duties as— (a) is not repealed by this Chapter, and (b) would have operated in relation to these duties if this Chapter had not been substituted for the repealed enactments.
\nCare and management.
\n85.—Tobacco products tax imposed by section 72 is placed under the care and management of the Commissioners.
\nCommencement.
\n86.—This Chapter comes into operation on such day as the Minister may appoint by order, and different days may be so appointed for different provisions or for different purposes.
\nMiscellaneous Excise and Customs Amendment of Finance (Excise Duty on Tobacco Products) Act 1977.
\n87.—(1) The Finance (Excise Duty on Tobacco Products) Act 1977 is amended— (a) in section 2A— (i) by substituting the following for subsection (2): “(2) Liability for duty imposed by section 2 arises at the time the tobacco products are released for consumption.”, (ii) by substituting the following for subsection (3): “(3) Subject to section 3(3) of this Act, the Revenue Commissioners shall issue tax stamps only on payment of an amount equivalent to the amount of duty represented by such stamps.”, and (iii) by deleting subsection (4), and (b) in section 3— (i) in subsection (1) by inserting “an amount paid or due in relation to the issue of tax stamps in respect of, or” after “repay or remit”, (ii) by substituting the following for subsection (1A): “(1A) The Revenue Commissioners may, subject to compliance with such conditions (if any) as they consider appropriate to impose, repay or remit duty or an amount paid or due on the issue of tax stamps— (a) where it is shown to their satisfaction that the tax stamps have been destroyed or are damaged or otherwise unsuitable for the use for which they were issued, or (b) where it is shown to their satisfaction that the stamps have been affixed to tobacco products which have been the subject of an irregularity, within the meaning of Article 20 of Council Directive No. 92/12/EEC of 25 February 19921 , in another Member State and where excise duty on such products has been paid in another Member State.”, and (iii) by substituting the following for subsection (3)(a): “(a) in respect of cigarettes and such other types of tobacco products as may be specified by order made under section 2A(5) where the issue of tax stamps arises in a period beginning on and including the fourth last day of a month up to and including the fifth last day of the subsequent month permit, subject to paragraph (aa), payment of the amount referred to in section 2A(3), or duty, to be deferred to a day not later than the last day of the second month following the subsequent month, (aa) in respect of cigarettes and such other types of tobacco products as may be specified by order made under section 2A(5) where the issue of stamps arises during the period beginning on and including 28 October in any year and ending on and including 27 December in that year permit payment of an amount referred to in section 2A(3), or duty, arising up to and including 30 November in that year and half the total of such amount and such duty arising in the said period thereafter, as determined by the Commissioners, to be paid not later than 31 December in that year, and”.
\nAmendment of section 96 (interpretation) of Finance Act 2001.
\n88.—
\nof the Finance Act 2001 is amended in subsection (1)— (a) by substituting the following for the definition of “mineral oil”: “ ‘mineral oil’ has the same meaning as it has in paragraph (c) of section 97(1);”, (b) by inserting the following definition after the definition of “prescribed”: “ ‘prohibited goods’ has the same meaning as it has in either— (a) section 94 of the Finance Act 1999 , or (b) section 73 (as amended by the Finance Act 2005) of the Finance Act 2003 ;”, (c) by substituting the following definition for the definition of “vehicle”: “ ‘vehicle’ means a mechanically propelled vehicle or any other conveyance, and includes any container, trailer, tank or any other thing, which— (a) is or may be used for the storage of goods in the course of carriage, and (b) is designed or constructed to be placed on, in or attached to any such vehicle or other conveyance;”, (d) by substituting the following for the definition of “wine”: “ ‘wine’ has the same meaning as it has in section 73 of the Finance Act 2003 .”, and (e) from such time as the Minister for Finance may appoint by order under section 86 for the coming into operation of section 71 , by substituting the following for the definition of “tobacco products”: “ ‘tobacco products’ has the same meaning as it has in paragraph (b) of section 97(1);”.
\nAmendment of section 97 (excisable products (Part 2)) of Finance Act 2001.
\n89.—
\nof the Finance Act 2001 is amended in subsection (1)— (a) by substituting the following for paragraphs (a) and (b): “(a) alcohol products chargeable with alcohol products tax under section 75 of the Finance Act 2003 ;”, and (b) from such time as the Minister for Finance may appoint by order under section 86 for the coming into operation of section 71 , by substituting the following for paragraphs (c) and (d): “(c) tobacco products chargeable with tobacco products tax under section 72 of the Finance Act 2005; (d) mineral oil chargeable with mineral oil tax under section 95 of the Finance Act 1999 .”.
\nAmendment of section 103 (payment) of Finance Act 2001.
\n90.—
\nof the Finance Act 2001 is amended— (a) by inserting the following subsection after subsection (1): “(1A) Every sum due in respect of excise duty, every fine, penalty or forfeiture incurred in connection with excise duty and every amount of interest payable under this section is deemed to be a debt due to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Commissioners and may (without prejudice to any other mode of recovery of such sum, fine, penalty, forfeiture or amount) be sued for and recovered by action, or other appropriate proceedings, at the suit of the Attorney General in any court of competent jurisdiction.”, and (b) by deleting subsection (2)(b) (inserted by the Finance Act 2003 ).
\nAmendment of section 109 (warehousing) of Finance Act 2001.
\n91.—
\nof the Finance Act 2001 , is amended by inserting the following after subsection (7): “(8) Excisable goods shall not be considered as having departed from a suspension arrangement until they have been removed from the warehouse where they are held under such an arrangement.
\nAmendment of section 110 (scope (Chapter 2)) of Finance Act 2001.
\n92.—
\nof the Finance Act 2001 is amended by substituting the following for subsection (1): “(1) This Chapter shall apply to all excisable products except that, in the case of mineral oil, it shall apply only to products specified in paragraph (1) of Article 20 of Council Directive No. 2003/96/EC of 27 October 20031 or which have been the subject, under paragraph (2) of that article, of a decision to make such products subject to the control and movement provisions of the Directive.”.
\nAmendment of Part 2 (general excise law) of Finance Act 2001.
\n93.—Part 2 of the Finance Act 2001 is amended from such time as the Minister for Finance may appoint by order under section 86 for the coming into operation of section 78 — (a) by substituting “ section 78 of the Finance Act 2005” for “section 10A (inserted by the Finance Act, 1994 ) of the Finance (Excise Duty on Tobacco Products) Act, 1977 ,” in sections 138 and 141(2), (b) by substituting “ section 78 of the Finance Act 2005,” for “section 10A (inserted by the Finance Act, 1994 ) of the Finance (Excise Duty on Tobacco Products) Act, 1977 ,” in each place where it occurs in sections 139(2)(a), 139(2)(b)(i) and 140(2), and (c) in section 139(2)(b)(ii) by substituting “ section 78 ” for “section 10A”.
\nAmendment of section 144 (power to deal with seizures, before and after condemnation) of Finance Act 2001.
\n94.—
\nof the Finance Act 2001 , is amended in subsection (3)(b) by inserting “or hazardous” after “perishable”.
\nMiscellaneous excise repeals.
\n95.—The enactments set out in Schedule 4 are repealed to the extent mentioned in the third column of that Schedule opposite the reference to the enactment concerned.
\nAmendment of section 2 of Customs and Excise (Miscellaneous Provisions) Act 1988.
\n96.—
\nof the Customs and Excise (Miscellaneous Provisions) Act 1988 is amended by inserting the following after subsection (8): “(9) In this section ‘vehicle’ means a mechanically propelled vehicle or any other conveyance, and includes any container, trailer, tank or any other thing, which— (a) is or may be used for the storage of goods in the course of carriage, and (b) is designed or constructed to be placed on, in or attached to any such vehicle or other conveyance.”.
\nAmendment of section 135C (remission or repayment in respect of vehicle registration tax on certain hybrid electric vehicles) of Finance Act 1992.
\n97.—(1) Section 135C (inserted by section 168 of the Finance Act 2001 ) of the Finance Act 1992 is amended in subsection (1) by substituting “31 December 2006” for “31 December 2004” (inserted by section 105 of the Finance Act 2003 ).
\nValue-Added Tax Interpretation (Part 3).
\n98.—In this Part— “Act of 2004” means the Finance Act 2004 ; “Principal Act” means the Value-Added Tax Act 1972 .
\nAmendment of section 3 (supply of goods) of Principal Act.
\n99.—Section 3 of the Principal Act is amended in subsection (5)(b) by substituting the following for subparagraph (iii)—