Finance Act 2014

Finance Act 2014 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 2014 Finance Act 2014 Finance Act 2014 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Open PDFOscail PDF Print Full ActPriontáil an tAcht Iomlán Number 37 of 2014 Finance Act 2014 CONTENTS

PART 1

Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation Section

Section 1

Chapter 2

Universal Social Charge

Section 2

Chapter 3

Income Tax

Section 3

Section 4

Section 5

Section 6

Section 7

Section 8

Section 9

Section 10

Section 11

Section 12

Section 13

Section 14

Section 15

Section 16

Section 17

Section 18

Section 19

Chapter 4

Income Tax, Corporation Tax and Capital Gains Tax

Section 20

Section 21

Section 22

Section 23

Section 24

Section 25

Section 26

Section 27

Section 28

Section 29

Section 30

Section 31

Section 32

Section 33

Section 34

Section 35

Chapter 5

Corporation Tax

Section 36

Section 37

Section 38

Section 39

Section 40

Section 41

Section 42

Section 43

Section 44

Chapter 6

Capital Gains Tax

Section 45

Section 46

Section 47

Section 48

Section 49

Section 50

Section 51

Section 52

PART 2

Excise

Section 53

Section 54

Section 55

Section 56

Section 57

Section 58

Section 59

Section 60

Section 61

Section 62

Section 63

Section 64

PART 3

Value-Added Tax

Section 65

Section 66

Section 67

Section 68

Section 69

Section 70

Section 71

PART 4

Stamp Duties

Section 72

Section 73

Section 74

Section 75

Section 76

Section 77

Section 78

PART 5

Capital Acquisitions Tax

Section 79

Section 80

Section 81

Section 82

Section 83

PART 6

Miscellaneous

Section 84

Section 85

Section 86

Section 87

Section 88

Section 89

Section 90

Section 91

Section 92

Section 93

Section 94

Section 95

Section 96

Section 97

Section 98

Section 99

Section 100

Section 101

PART 1

Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1

Interpretation Interpretation (Part 1) 1. In this Part “Principal Act” means the Taxes Consolidation Act 1997 .

Chapter 2

Universal Social Charge Amendment of Part 18D of Principal Act (universal social charge) 2. Part 18D of the Principal Act is amended— (a) in section 531AL by substituting the following for the definition of “similar type payments”: “‘similar type payments’ means payments which are of a similar character to social welfare payments but which are made by— (a) the Department of Education and Skills, (b) the Department of Agriculture, Food and the Marine, (c) the Health Service Executive, (d) an education and training board in relation to attendance at a non-craft training course funded by An tSeirbhís Oideachais Leanúnaigh agus Scileanna, (e) a sponsor in respect of participation in programmes known as the Community Employment Scheme and the Jobs Initiative Scheme, or (f) any other state or territory;”, (b) in section 531AM(2) by substituting “€12,012” for “€10,036”, (c) in section 531AN— (i) in subsection (1)(a) by substituting “column (2) of Part 1 of the Table to this section corresponding to the part of aggregate income specified in column (1) of Part 1 of that Table” for “column (2) of the Table to this section corresponding to the part of aggregate income specified in column (1) of that Table”, (ii) in subsection (1)(b) by substituting “column (2) of Part 2 of the Table to this section corresponding to the part of aggregate income specified in column (1) of Part 2 of that Table” for “column (3) of the Table to this section corresponding to the part of aggregate income specified in column (1) of that Table”, (iii) in subsection (2) by substituting “column (2) of Part 1 of that Table, be charged on the amount of that excess at the rate of 11 per cent” for “column (2) of that Table, be charged on the amount of that excess at the rate of 10 per cent”, (iv) in subsection (3) by substituting “exceeds €17,576 at the rate provided for in column (2) of Part 1 of that Table, be charged on the amount of the excess at the rate of 3.5 per cent” for “exceeds €16,016 at the rate provided for in column (2) of that Table, be charged on the amount of the excess at the rate of 4 per cent”, (v) in subsection (3A)(a) by substituting “3.5 per cent” for “4 per cent”, (vi) by substituting the following subsection for subsection (4): “(4) Subsection (3) shall cease to have effect for the tax year 2018 and subsequent tax years.”, and (vii) by substituting the following Table for the Table to that section: “TABLE

PART 1

PART 2

”, and (d) in section 531AS(1A)— (i) in paragraph (b) by substituting “column (2) of Part 1 or column (2) of Part 2” for “column (2) or (3) ”, and (ii) in paragraph (c) by substituting “column (2) of Part 1 or column (2) of Part 2” for “column (2) or (3) ”.

Chapter 3

Income Tax Amendment of section 15 of Principal Act (rate of charge) 3. As respects the year of assessment 2015 and subsequent years of assessment section 15 of the Principal Act is amended— (a) in subsection (3)(i) by substituting “€24,800” for “€23,800”, and (b) by substituting the following Table for the Table to that section: “TABLE

PART 1

PART 2

PART 3

”, Amendment of section 128 of Principal Act (treatment of directors of companies and employees granted rights to acquire shares or other assets) 4. Section 128 of the Principal Act is amended in subsection (11) by substituting “to the Revenue Commissioners, in an electronic format approved by them,” for “in writing to the inspector”.

Amendment of section 195 of Principal Act (exemption of certain earnings of writers, composers and artists) 5. Section 195 of the Principal Act is amended— (a) by substituting the following for subsection (1): “(1) In this section— ‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement; ‘EEA state’ means a state which is a contracting party to the EEA Agreement; ‘work’ means an original and creative work which is within one of the following categories: (a) a book or other writing; (b) a play; (c) a musical composition; (d) a painting or other like picture; (e) a sculpture.”, (b) in subsection (2)(a) by substituting the following for subparagraph (i): “(i) who is— (I) resident in one or more Member States, or in another EEA state, and not resident elsewhere, or (II) ordinarily resident and domiciled in one or more Member States, or in another EEA state, and not resident elsewhere, and”, and (c) in subsection (3)(aa) by substituting “shall not exceed €50,000 for the year of assessment 2015” for “shall not exceed €40,000 for the year of assessment 2011”.

Exemption in respect of compensation for certain living donors 6. The Principal Act is amended by inserting the following section after section 204A: “Exemption in respect of compensation for certain living donors 204B. The compensation for donation of a kidney for transplantation payable to a living donor under conditions defined by the Minister for Health pursuant to Regulation 21(2) of the European Union (Quality and Safety of Human Organs Intended for Transplantation) Regulations 2012 ( S.I. No. 325 of 2012 ) shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.”.

Amendment of section 244 of Principal Act (relief for interest paid on certain home loans) 7. Section 244 of the Principal Act is amended in subsection (1) — (a) in the definition of “qualifying residence” by substituting “situated in an EEA state” for “situated in the State, Northern Ireland or Great Britain,”, and (b) by inserting the following definitions: “‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement; ‘EEA state’ means a state (including the State) which is a contracting party to the EEA Agreement;”.

Amendment of Schedule 13 to Principal Act (accountable persons for purposes of Chapter 1 of Part 18) 8. (1) Schedule 13 to the Principal Act is amended— (a) by deleting paragraphs 20, 36, 64 and 98, and (b) by inserting the following after paragraph 192: “193. Child and Family Agency.

Amendment of section 216A of Principal Act (rent-a-room relief) 9. As respects the year of assessment 2015 and subsequent years of assessment, section 216A of the Principal Act is amended, in subsection (5), by substituting “€12,000” for “€10,000”.

Amendment of section 189A of Principal Act (special trusts for permanently incapacitated individuals) 10. Section 189A(1) of the Principal Act is amended in the definition of “qualifying trust” by substituting the following for subparagraph (b)(ii): “(ii) the undistributed part of the trust funds— (I) where the individual or the last surviving individual, as the case may be, is survived by a child, spouse or civil partner, be appointed in favour of the estate of the deceased individual, or (II) otherwise, be applied for charitable purposes or be appointed in favour of the trustees of charitable bodies,”.

Amendment of Chapter 1 of Part 12 of Principal Act (loss relief) 11. (1) Chapter 1 of Part 12 of the Principal Act is amended— (a) in section 381(1) by substituting “this section and sections 381A, 381B and 381C” for “this section and section 381A”, (b) by inserting the following section after section 381A: “Restriction of loss relief — passive trades 381B. (1) (a) In this section ‘relevant loss’ means a loss in a trade or profession (including any amount in respect of allowances which, pursuant to section 392, is to be treated as a loss for the purposes of section 381) but does not include a loss which arises from— (i) farming, within the meaning of Part 23, (ii) market gardening, (iii) a trade which consists of the underwriting business of a member of Lloyd’s, (iv) any amount in respect of qualifying expenditure which by virtue of section 482(2) is to be treated as a loss, or (v) any amount in respect of specified capital allowances, within the meaning of section 531AAE, which pursuant to section 392 is to be treated as a loss. (b) For the purposes of this section— (i) an individual carries on a trade in a non-active capacity during a period if the individual does not work for the greater part of his or her time on the day to day management or conduct of the trade or profession during that period, and (ii) an individual does not work for the greater part of his or her time on the day to day management or conduct of the trade or profession during a period unless, over the course of that period, he or she spends an average of at least 10 hours a week personally engaged in the activities of the trade or profession and those activities are carried on on a commercial basis and in such a way that profits of the trade or profession could reasonably be expected to be made in that period or within a reasonable time afterwards.

(ii) an individual does not work for the greater part of his or her time on the day to day management or conduct of the trade or profession during the relevant period for a year of assessment unless, over the course of that period, he or she spends an average of at least 10 hours a week personally engaged in the activities of the trade or profession and those activities are carried on on a commercial basis and in such a way that profits of the trade or profession could reasonably be expected to be made in that relevant period for a year of assessment or within a reasonable time afterwards.

Amendment of section 467 of Principal Act (employed person taking care of incapacitated individual) 12. Section 467 of the Principal Act is amended in subsections (2) and (3) by substituting “€75,000” for “€50,000” in each place.

Amendment of section 477B of Principal Act (home renovation incentive) 13. Section 477B of the Principal Act is amended— (a) in subsection (1) — (i) by substituting the following for the definition of “qualifying residence”: “‘qualifying residence’, in relation to an individual, means a residential premises situate in the State— (a) which is owned by the individual and which is occupied by the individual as his or her only or main residence, (b) which has previously been occupied as a residence and has been acquired by the individual for the purposes of occupation by the individual as his or her only or main residence on completion of the qualifying work and which is so occupied upon completion, (c) which is owned by an individual and occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 , and where such registration requirements have been complied with by the individual, or (d) which is owned by an individual and which is intended by the individual to be occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 , and where such registration requirements have been complied with by the individual and which is occupied by a tenant within 6 months of completion of the qualifying work;”, and (ii) by inserting the following definitions: “‘rental unit’ means— (a) part of a building used, or suitable for use, as a dwelling which is occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 , and where such registration requirements have been complied with, or (b) part of a building used, or suitable for use, as a dwelling which is owned by an individual and which is intended by the individual to be occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 , and where such registration requirements have been complied with by the individual and which is occupied by a tenant within 6 months of completion of the qualifying work; ‘tenancy’ has the same meaning as it has in the Residential Tenancies Act 2004 ; ‘tenant’ has the same meaning as it has in the Residential Tenancies Act 2004 ;”, (b) by inserting the following subsection after subsection (1): “(1A) Where, as a result of the carrying out of qualifying work, a residential premises referred to in paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) is converted into more than one rental unit, each such rental unit shall be a qualifying residence.”,

(c) by substituting the following subsection for subsection (2): “(2) (a) This section applies to qualifying expenditure incurred on qualifying work carried out— (i) during the period from 25 October 2013 to 31 December 2015 in the case of a qualifying residence to which paragraph (a) or (b) of the definition of ‘qualifying residence’ in subsection (1) refers, and (ii) during the period from 15 October 2014 to 31 December 2015 in the case of a qualifying residence to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers. (b) Where, during the period from 25 October 2013 to 31 December 2013, qualifying work is carried out on a qualifying residence to which paragraph (a) or (b) of the definition of ‘qualifying residence’ in subsection (1) refers, and where payments in respect of such work are made during that period, any such payments shall be deemed to have been made in the year of assessment 2014. (c) Where, during the period from 15 October 2014 to 31 December 2014, qualifying work is carried out on a qualifying residence to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, and where payments in respect of such work are made during that period, any such payments shall be deemed to have been made in the year of assessment 2015. (d) Notwithstanding paragraph (a), where qualifying work, for which permission is required under the Planning and Development Act 2000 , is carried out during the period from 1 January 2016 to 31 March 2016, then provided such permission is granted on or before 31 December 2015, that work shall be deemed to be carried out in the year of assessment 2015.”, (d) in subsection (3) by inserting the following paragraph after paragraph (c): “(ca) Where the qualifying work involves the conversion of a residential premises referred to in paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) into more than one rental unit, paragraph (c) shall be read as if it applies to each of those units.”, (e) in subsection (4) — (i) in paragraph (a)(vii) by deleting “and”, (ii) in paragraph (a)(viii) by substituting “estimated end date,” for “estimated end date.”, and (iii) by inserting the following subparagraphs after subparagraph (viii) of paragraph (a): “(ix) confirmation as to whether or not the property referred to in subparagraph (iii) is a residential premises to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, and

(x) in the case of a property to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, where such property is, as a result of the carrying out of the qualifying work, to be converted into more than one rental unit, the number of such rental units.”, (f) in subsection (6) — (i) in paragraph (a)(iv) by substituting “of subsection (7);” for “of subsection (7),”, (ii) by inserting the following subparagraphs after subparagraph (iv) of paragraph (a): “(v) confirmation as to whether or not the property referred to in subparagraph (iii) is a residential premises to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers; (vi) in the case of a property to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, where such property was, as a result of the carrying out of qualifying work, converted into more than one rental unit, the number of such rental units and the address of each rental unit,”, (iii) in paragraph (b)(iii) by substituting “carried out on a qualifying residence of the claimant,” for “carried out on the claimant’s qualifying residence,”, and (iv) by substituting the following subparagraph for subparagraph (vi) of paragraph (b): “(vi) the property on which the qualifying work was carried out was— (I) in the case of a residential premises referred to in paragraph (a) or (b) of the definition of ‘qualifying residence’ in subsection (1), occupied by the individual as his or her only or main residence on completion of the work, or (II) in the case of a residential premises referred to in paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1), occupied, within 6 months of completion of the qualifying work, by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 and such registration requirements were complied with, and (III) in the case of each rental unit referred to in paragraph (a)(vi), occupied, within 6 months of completion of the qualifying work, by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 and such registration requirements have been complied with.”, and (g) by substituting the following subsection for subsection (12): “(12) In the case of a qualifying residence to which paragraph (a) or (b) of the definition of ‘qualifying residence’ in subsection (1) refers, expenditure in respect of which a claimant is entitled to relief under this section shall not include any expenditure in respect of which that claimant is entitled to a deduction, relief or allowance under any other provision of the Tax Acts or the

Value-Added Tax Consolidation Act 2010 .”.

Amendment of section 836 of Principal Act (allowances for expenses of members of the Oireachtas) 14. Section 836 of the Principal Act is amended in subsection (2) by inserting “but such expenses shall not include local property tax payable under section 16 of the Finance (Local Property Tax) Act 2012 or the charge for water services payable under section 21 of the Water Services (No. 2) Act 2013 ” after “in maintaining that second residence”.

Amendment of section 825C of Principal Act (special assignee relief programme) 15. Section 825C of the Principal Act is amended— (a) in subsection (1) — (i) by inserting the following definition: “‘PPS number’, in relation to an individual, means the individual’s personal public service number within the meaning of section 262 of the Social Welfare Consolidation Act 2005 ;”, (ii) in paragraph (f) of the definition of “relevant income”, by substituting “any bonus, commission or other similar payments” for “any bonus payment”, and (iii) by deleting the definition of “specified amount”, (b) in subsection (2) — (i) in paragraph (a) by substituting “In this section, in the case of an individual who arrives in the State in any of the tax years 2012, 2013 or 2014,” for “In this section”, (ii) in paragraph (a)(ii) by deleting “in any of the tax years 2012, 2013 or 2014”, and (iii) in paragraph (b) by substituting “are performed in the State for the tax years 2012, 2013 and 2014,” for “are performed in the State,”, (c) by inserting the following after subsection (2): “(2A) In this section, in the case of an individual who arrives in the State in any of the tax years 2015, 2016 or 2017, ‘relevant employee’ means an individual— (a) who for the whole of the 6 months immediately before his or her arrival in the State was a full time employee of a relevant employer and exercised the duties of his or her employment for that relevant employer outside the State, (b) who arrives in the State at the request of his or her relevant employer to— (i) perform in the State duties of his or her employment for that employer, or (ii) to take up employment in the State with an associated company and to perform duties in the State for that company, (c) who performs the duties referred to in paragraph (b) for a minimum period of 12 consecutive months from the date he or she first performs those duties in the State, (d) who was not resident in the State for the 5 tax years immediately preceding the tax year in which he or she first arrives in the State for the purposes of performing the duties referred to in paragraph (b), and (e) in respect of whom the relevant employer or associated company certifies, in such form as the Revenue Commissioners may require, within 30 days from the employee’s arrival in the State to perform the duties referred to in paragraph (b), that the individual complies with the conditions set out in paragraphs (a), (b) and (c). (2B) (a) In this section, ‘specified amount’, in relation to a relevant employee and a tax year, means an amount determined by the formula—

(A-B) x 30 per cent. (b) For the purposes of paragraph (a) — (i) ‘A’ is the amount of the relevant employee’s income, profits or gains for the tax year from the employment referred to in subsection (2)(a)(ii) or (2A)(b), as the case may be, excluding any amount that is not assessed to tax in the State, and after deducting— (I) any contribution or qualifying premium in respect of which there is provision for a deduction under section 774(7), 787, 787E or 787N, and (II) any amount of income, profits or gains from that employment in respect of which the relevant employee is entitled to relief under Part 35 for tax paid on such income, profits or gains under the laws of a territory other than the State, but in respect of the tax years 2012, 2013 and 2014 where this amount exceeds €500,000, ‘A’ shall be €500,000, and (ii) ‘B’ is €75,000. (c) Notwithstanding paragraph (b) — (i) where, in the tax year for which a relevant employee is first entitled to relief under this section, the period from the date the relevant employee commences the performance in the State of duties of the employment with the relevant employer or associated company to the end of the tax year is less than the tax year, ‘B’ shall be reduced proportionately, (ii) where, in the last tax year for which a relevant employee is entitled to relief under this section, the period from the start of the tax year to the date the relevant employee ceases the performance of duties in the State of the employment with the relevant employer or associated company is less than the tax year, ‘B’ shall be reduced proportionately.”, (d) by substituting the following for subsection (3): “(3) (a) Subject to paragraph (b), where, for a tax year, a relevant employee— (i) is resident in the State for tax purposes and is not resident elsewhere, (ii) performs the duties referred to in subsection (2)(a)(ii) or (2A)(b), and (iii) has relevant income from his or her relevant employer or from the associated company, the annualised equivalent of which is not less than €75,000, and makes a claim in that behalf, then that relevant employee shall be entitled to have an amount of income, profits or gains from his or her employment with a relevant employer or from his or her employment with an associated company equal to the specified amount deducted from the income, profits or gains to be assessed on that relevant employee for that tax year. (b) With effect from the tax year 2015, paragraph (a)(i) shall apply as if the words ‘and is not resident elsewhere’ were deleted.

(c) A relevant employee shall only be entitled to relief under this section for 5 consecutive tax years commencing with the tax year for which the relevant employee is first entitled to relief under this section.”, (e) by substituting the following for subsection (4): “(4) For the purposes of subsections (2B)(c) and (3), the tax year for which a relevant employee is first entitled to relief under this section means— (a) in the case of a relevant employee who arrives in the State in 2012, 2013 or 2014— (i) the first tax year in which the relevant employee arrives in the State for the purposes set out in subsection (2)(a)(ii) provided that for that tax year the relevant employee is resident in the State for tax purposes and not resident elsewhere, or (ii) if not resident in the State for tax purposes for that first tax year, the tax year following that first tax year provided that for that following tax year the relevant employee is resident in the State and not resident elsewhere, or (iii) where in that first tax year, he or she is resident in the State for tax purposes and is also resident elsewhere, the tax year following that first tax year provided that for that following tax year he or she is resident in the State for tax purposes and is not resident elsewhere, but, as regards a relevant employee who arrives in the State in 2014, subparagraph (ii) shall apply as if the words ‘and not resident elsewhere’ were deleted, and subparagraph (iii) shall apply as if the words ‘and is not resident elsewhere’ were deleted, (b) in the case of a relevant employee who arrives in the State in 2015, 2016 or 2017— (i) the first tax year in which the employee arrives in the State for the purposes set out in subsection (2A)(b), provided that for that tax year he or she is resident in the State for tax purposes, or (ii) if not resident in the State for tax purposes for that first tax year, the tax year following that first year provided that for that following tax year he or she is resident in the State.”, (f) by deleting subsection (5), (g) in subsection (6) by substituting “In any tax year in respect of which” for “In any tax year in which”, (h) in subsection (9) by substituting “following an application, in such form as the Revenue Commissioners may require, by the relevant employer or associated company,” for “following an application by the relevant employer or associated company,”, (i) by substituting the following for subsection (10): “(10) On or before 23 February following each tax year, a relevant employer or associated company shall deliver to the Revenue Commissioners an annual return, in such form as the Revenue Commissioners may require, setting out—

(a) in respect of each relevant employee— (i) the name and PPS number, (ii) nationality, (iii) country in which the relevant employee worked for the relevant employer prior to his or her first arrival in the State to perform duties of the relevant employment, (iv) job title and brief description of the role of the relevant employee while availing himself or herself of relief under this section, and (v) where relevant, the amount of income, profits or gains in respect of which tax was not deducted in accordance with subsection (9), (b) details of the increase in the number of employees employed, or details of the number of employees retained, by the relevant employer or associated company as a result of the assignment to the State of the employees referred to in paragraph (a), and (c) the relevant employer’s or associated company’s employer registration number.”, and (j) by deleting subsection (11).

Amendment of section 823A of Principal Act (deduction for income earned in certain foreign states) 16. (1) Section 823A of the Principal Act is amended— (a) in subsection (1), in the definition of “qualifying day”, by substituting the following for all words from and including “4 consecutive days” to the end of that definition: “3 consecutive days throughout the whole of which the individual is present in a relevant state for the purposes of the performance of the duties of the office or employment and where such consecutive days (taken as a whole) are substantially devoted to the performance of such duties, but no day shall be counted more than once as a qualifying day, and presence in a relevant state shall include the duration of time spent travelling directly from the State to a relevant state, and from a relevant state to the State or to another relevant state;”, (b) in subsection (1), by substituting the following for the definition of “relevant state”: “‘relevant state’ means, as regards the years of assessment 2012 to 2017, the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China or the Republic of South Africa, and includes— (a) as regards the years of assessment 2013 to 2017, the Arab Republic of Egypt, the People’s Democratic Republic of Algeria, the Republic of Senegal, the United Republic of Tanzania, the Republic of Kenya, the Federal Republic of Nigeria, the Republic of Ghana and the Democratic Republic of the Congo, and (b) as regards the years of assessment 2015 to 2017, Japan, the Republic of Singapore, the Republic of Korea, the Kingdom of Saudi Arabia, the United Arab Emirates, the State of Qatar, the Kingdom of Bahrain, the Republic of Indonesia, the Socialist Republic of Vietnam, the Kingdom of Thailand, the Republic of Chile, the Sultanate of Oman, the State of Kuwait, the United Mexican States and Malaysia;”, (c) in subsection (3) by substituting “40 days” for “60 days”, and (d) by inserting the following after subsection (5): “(6) This section shall continue to apply for the years of assessment 2015, 2016 and 2017.”.

Amendment of Part 18 of Principal Act (payments to subcontractors in certain industries) 17. Part 18 of the Principal Act is amended— (a) in section 530(1) by inserting the following definition: ‘unreported payment notification’ means a notification to the Revenue Commissioners of a relevant payment which has not been made in accordance with section 530C and where a deduction authorisation has not been issued in accordance with section 530D;”, and (b) in section 530F— (i) by substituting the following for subsection (2): “(2) A principal to whom section 530A applies who makes a relevant payment to a subcontractor in circumstances other than those referred to in subsection (1) shall, without prejudice to section 1078, be liable to a penalty of— (a) 35 per cent of the relevant payment, where the person to whom the relevant payment was made was a subcontractor who has not had a determination made by the Revenue Commissioners under section 530I, (b) 20 per cent of the relevant payment, where the person to whom the relevant payment was made was a subcontractor who has had a determination made by the Revenue Commissioners under section 530I and where neither section 530G nor section 530H applies to the subcontractor concerned, (c) 10 per cent of the relevant payment, where the person to whom the relevant payment was made was a subcontractor to whom section 530H applies, and (d) 3 per cent of the relevant payment, where the person to whom the relevant payment was made was a subcontractor to whom section 530G applies.”, (ii) by substituting the following for subsection (3): ““(3) (a) Where subsection (2) applies, a principal shall submit an unreported payment notification to the Revenue Commissioners. (b) The Revenue Commissioners shall make regulations for the purposes of this subsection and such regulations may— (i) specify the manner by which principals shall submit an unreported payment notification to the Revenue Commissioners, and (ii) provide for the details to be supplied to the Revenue Commissioners by a principal in relation to an unreported payment notification.”, and (iii) by deleting subsection (6).

Donations to approved bodies 18. (1) The Principal Act is amended— (a) in section 848A by inserting the following after subsection (3A): “(3B) Where— (a) the Revenue Commissioners withdraw the authorisation of an approved body by a notice in writing in accordance with paragraph 7 of Part 3 of Schedule 26A, and (b) (i) a company, or (ii) an individual who is a chargeable person (within the meaning of Part 41A) and who for a year of assessment is entitled to deduct or set off the amount of a relevant donation made to an approved body against any income of the individual chargeable to income tax for that year of assessment, makes a donation in good faith to the approved body in the period beginning on the date specified in the notice from which the withdrawal of the authorisation applies and has effect and ending on the date of the notice, the donation, notwithstanding the withdrawal of the authorisation, shall, subject to this section, be deemed to be a relevant donation made to an approved body.”, and (b) in paragraph 7 of Part 3 of Schedule 26A— (i) by deleting “, subsequent to the date of the notice,”, and (ii) by inserting “, which date shall not be earlier than the date on which the charity has ceased to so comply” after “therein”.

Retirement benefits 19. (1) Chapter 1 of Part 30 of the Principal Act is amended in section 776— (a) in subsection (2)(b) — (i) by substituting “Subject to paragraph (bb), any contribution,” for “Any contribution,”, and (ii) by inserting the following after paragraph (ba): “(bb) (i) In this paragraph— ‘fixed-term employee’ has the meaning assigned to it by section 2 of the Protection of Employees (Fixed-Term Work) Act 2003 ; ‘NUIG’ means the National University of Ireland, Galway; ‘NUIG scheme’ means, as the case may be— (I) the National University of Ireland, Galway (Closed) Pension Scheme 2010 (Joint Pension Scheme), or (II) the National University of Ireland, Galway Pension Scheme 2005 (Model Scheme); ‘qualifying period’ means the period beginning on 1 July 2008 and ending on 31 December 2018; ‘relevant period’ means the period beginning on 14 July 2003 and ending on 30 June 2008; ‘relevant year’ means any year which falls wholly or partially within the relevant period; ‘specified employee’ means an individual who was a fixed-term employee of NUIG during the relevant period under a contract of employment which is governed by the Protection of Employees (Fixed-Term Work) Act 2003 . (ii) This paragraph applies to a contribution, which is not an ordinary annual contribution, paid or borne by a specified employee under the NUIG scheme during the qualifying period in respect of a relevant year, other than such a contribution which is— (I) treated as an ordinary annual contribution in accordance with subparagraph (i) or (ii)(II) of paragraph (b), or (II) following an election under subsection (3), is treated for the purposes of this section as paid in the year prior to the year in which it is paid. (iii) Any contribution to which this paragraph applies, which has not otherwise been deducted as an expense in assessing income tax under Schedule E for any year, shall be treated as an ordinary annual contribution paid in the relevant year.”, (b) by substituting the following for subsection (2A): “(2A) (a) Paragraphs (b)(ii) and (bb) of subsection (2) shall operate notwithstanding any limitation in section 865(4) on the time within which a claim for a repayment of tax is required to be made where the officer or employee makes a claim for relief in respect of a contribution which is not an ordinary annual contribution within 4 years from the end of the year of assessment in which such contribution is paid or borne by the officer or employee and section 865(6) shall not prevent the Revenue Commissioners from making a repayment of tax as a consequence of such a claim, where a valid claim for a repayment of tax (within the meaning of section 865(1)(b)) has been made by the officer or employee.

(b) For the purposes of this subsection, where a contribution to which subsection (2)(bb) applies has been paid or borne by a specified employee before 1 January 2015, it shall be treated as having been paid or borne by the employee in the year of assessment 2014.”, and (c) in subsection (3) by substituting “Subject to paragraphs (b), (ba) and (bb) of subsection (2),” for “Subject to paragraphs (b) and (ba) of subsection (2),”.

and (iv) by substituting the following for subsection (3A): “(3A) Subsection (3) shall not apply where the distribution referred to in that subsection is made for the purpose of— (a) reimbursing, in whole or in part, an administrator (within the meaning of section 787O(1)) in respect of the payment by that administrator of income tax charged on a chargeable excess in respect of the person beneficially entitled to the assets in the fund, or (b) payment by the qualifying fund manager of the amount, or part of the amount, of the appropriate share (within the meaning of section 787R(2A)(b)) of a non-member (within the meaning of section 787O(1)) (being the person beneficially entitled to the assets in the fund) of income tax charged on a chargeable excess, under the provisions of Chapter 2C of this Part.”, and (b) in section 784C(5) by substituting the following for paragraph (b): “(b) a payment or transfer, on one occasion only, in any tax year (being a year of assessment for tax purposes) to the individual beneficially entitled to the assets in the fund of an amount that does not exceed 4 per cent of the value of the assets of the fund at the time of the payment or transfer.”.

(b) the amount crystallised by a benefit crystallisation event occurring on or after 7 December 2005 in relation to the relevant member under the arrangement, include in those calculations— (i) the designated benefit payable pursuant to the order, or (ii) where the transfer amount has been applied, the designated benefit that would otherwise have been payable pursuant to the order if the transfer amount had not been so applied, as if the pension adjustment order had not been made, and where the administrator is the administrator of a relevant pension arrangement to which a sum representing the relevant member’s accrued rights under the relevant pension arrangement in respect of which the pension adjustment order has been made, has been transferred, or subsequently transferred, in whole or in part, the calculations referred to in paragraphs (a) and (b) shall reflect the sum that would otherwise have been transferred, or subsequently transferred, if no pension adjustment order had been made.”, (b) in section 787Q— (i) by inserting the following after subsection (5): “(5A) (a) Notwithstanding section 59B of the Pensions Act 1990 , where, in accordance with section 787S(3), a non-member’s appropriate share (within the meaning of section 787R(2A)(b)) of tax arising on a chargeable excess is paid by the subsequent administrator, in whole or in part, and the non-member was in receipt of a pension benefit payable from the transfer arrangement at the date the subsequent administrator received the certificate referred to in section 787R(3B), then so much of the tax that is paid by the subsequent administrator shall itself be treated as forming part of the non-member’s appropriate share unless the non-member’s pension benefit payable under the transfer arrangement is reduced so as to fully reflect the amount of tax so paid or the subsequent administrator is reimbursed by the non-member in respect of any tax so paid. (b) Where, in accordance with section 787S(3), a subsequent administrator or a fund administrator (in this paragraph referred to as the ‘administrator’) is liable to pay the amount of a non- member’s appropriate share (within the meaning of section 787R(2A)(b)) of tax arising on a chargeable excess, or a part of that amount, the administrator shall, for the purposes of payment of the tax, be entitled to dispose of or appropriate such assets of— (i) the transfer arrangement as represent the non-member’s accrued rights under that arrangement, or (ii) the approved retirement fund, approved minimum retirement fund (or where the non-member has an approved retirement fund and an approved minimum retirement fund, of both funds) or vested PRSA (or vested PRSAs, where the non-member has more than one vested PRSA), as the case may be, (in this subsection referred to as the ‘fund’),

as are required to meet the amount of the tax so payable and the non-member shall allow such disposal or appropriation. (c) Where in pursuance of this subsection and section 787S(3) a subsequent administrator reduces a non-member’s pension benefit or disposes of or appropriates an asset of the transfer arrangement, or a fund administrator disposes of or appropriates an asset of the fund, then no action shall lie against the subsequent administrator or the fund administrator in any court by reason of such reduction, disposal or appropriation.”, and (ii) by inserting the following after subsection (6): “(6A) Where the provisions of section 787R(2A) apply in relation to a relevant pension arrangement referred to in subsection (6), then— (a) where no transfer amount has been applied, or (b) where a transfer amount has been applied to provide a retirement benefit for or in respect of the non-member under the arrangement of the same actuarial value as the transfer amount, the provisions of subsections (6), (7), (8) and (9) shall apply, as if the references in those subsections to— (i) the individual were a reference to the relevant member or the non- member, as the case may be, and (ii) the rules of the scheme were a reference to the rules of the scheme having regard to the provisions of the pension adjustment order.”, (c) in section 787R— (i) in subsection (1)(a) by substituting “at the higher rate for the tax year (within the meaning of section 787TA(1)) in which the benefit crystallisation event giving rise to the chargeable excess occurs” for “at the rate of 41 per cent”, (ii) in subsection (2) by substituting “Subject to subsection (2A)(d), the persons liable” for “The persons liable”, (iii) by inserting the following after subsection (2): “(2A) (a) Where an individual is a relevant member of a relevant pension arrangement, income tax charged under subsection (1) (in this subsection referred to as the ‘tax’) in respect of a chargeable excess arising on a benefit crystallisation event in respect of the relevant member under that arrangement shall be apportioned by the administrator between the relevant member and the non-member (in this subsection referred to as the ‘relevant parties’) in accordance with paragraph (b), and the persons liable for the tax so apportioned and the extent of their liability shall be the persons referred to in paragraph (d) and the liabilities referred to therein. (b) Subject to the assumption in paragraph (c), the tax referred to in paragraph (a) shall be apportioned between the relevant parties such that each party’s share of the tax (in this Chapter referred to as the ‘appropriate share’) shall not exceed such part of the tax as would bear to that tax the same proportion as each party’s share of the retirement benefit (arising under the benefit crystallisation event giving rise to the tax) bears to that retirement benefit, having regard to the designated benefit payable to the non-member pursuant to the pension adjustment order.

(c) The assumption referred to in paragraph (b) is that, where a transfer amount has been applied to provide a retirement benefit for or in respect of the non-member, each party’s share of the retirement benefit arising under the benefit crystallisation event giving rise to the tax shall be determined as follows: (i) in the case of the non-member— (I) where the relevant pension arrangement referred to in paragraph (a) is a defined benefit arrangement and is the arrangement in respect of which the pension adjustment order has been made, it shall be the designated benefit on which the transfer amount was calculated, and (II) in any other case, it shall be the transfer amount, and (ii) in the case of the relevant member, it shall be an amount equivalent to the amount determined by the formula— A — B where— A is the retirement benefit arising under the benefit crystallisation event giving rise to the tax, and B is the non-member’s share determined in accordance with clause (I) or (II), as the case may be, of subparagraph (i). (d) The persons liable for the tax apportioned in accordance with paragraph (b) and the extent of their liability shall be— (i) the administrator and the relevant member in respect of the relevant member’s appropriate share, and (ii) (I) where no transfer amount has been applied to provide a retirement benefit for or in respect of the non-member (and notwithstanding the provisions of the pension adjustment order), the administrator and the non-member in respect of the non-member’s appropriate share, or (II) where a transfer amount has been applied to provide a retirement benefit for or in respect of the non-member and— (A) the non-member’s retirement benefit under the transfer arrangement has not crystallised at the date the subsequent administrator receives the certificate referred to in subsection (3B) or where the administrator and the subsequent administrator are the same person (in this section referred to as the ‘alternative circumstance’) at the date of the benefit crystallisation event giving rise to the chargeable excess (in this section referred to as the ‘alternative date’), the subsequent administrator and the non-member in respect of the non-member’s appropriate share, or (B) the non-member’s retirement benefit under the transfer arrangement has crystallised at the date the subsequent administrator receives the certificate referred to in subsection (3B) or where the alternative circumstance arises at the alternative date and the non-member is in receipt of a pension payable from the transfer arrangement, the subsequent administrator and the non- member in respect of the non-member’s appropriate share, or

(C) the non-member’s retirement benefit under the transfer arrangement has crystallised at the date the subsequent administrator receives the certificate referred to in subsection (3B) or where the alternative circumstance arises at the alternative date and the non-member has exercised a relevant option under the transfer arrangement, the fund administrator and the non-member in respect of the non-member’s appropriate share, or (III) in any other case, the non-member in respect of his or her appropriate share, and the liability of the persons referred to in subparagraph (i) and in clauses (I) and (II) of subparagraph (ii) shall be joint and several. (e) Notwithstanding paragraph (d)(ii)(II), the liability of a subsequent administrator or a fund administrator shall not exceed the lesser of the non-member’s appropriate share and— (i) in the case of a subsequent administrator, the amount or value of the assets in the transfer arrangement (in this subparagraph referred to as the ‘first-mentioned arrangement’) representing the non-member’s accrued rights under the arrangement at the time those rights are transferred to another relevant pension arrangement or at the time the non-member’s retirement benefit under the first-mentioned arrangement crystallise, as the case may be, or (ii) in the case of a fund administrator, the amount or value of the assets in the approved retirement fund, approved minimum retirement fund (or the aggregate of those amounts or values where the non-member has an approved retirement fund and an approved minimum retirement fund) or vested PRSA (or the aggregate of those amounts or values where the non-member has more than one vested PRSA), as the case may be, at the date the fund administrator receives the certificate or copy certificate referred to in subsection (3C).”, (iv) by substituting the following for subsection (3): “(3) A person referred to in subsection (2) or paragraph (d) of subsection (2A) shall be liable for any income tax charged in accordance with subsection (1) or, as the case may be, for the appropriate share of that tax, whether or not that person, or any other person who is liable to the charge, is resident or ordinarily resident in the State.”, (v) by substituting the following for subsection (3A): “(3A) The references in subsections (2), (2A)(d) and (3) to income tax charged under subsection (1) or to the appropriate share of that tax, shall be deemed to be references to the amount of income tax so charged or to the appropriate share of that tax, as the case may be, reduced, as appropriate, in accordance with section 787RA.

(3B) Where the provisions of subsection (2A) apply and a transfer amount has been applied, the administrator (other than where the alternative circumstance referred to in subsection (2A)(d)(ii)(II)(A) arises) shall establish the identity of the subsequent administrator and, within 21 days from the end of the month in which the benefit crystallisation event giving rise to the chargeable excess occurs, provide to the subsequent administrator a certificate stating— (a) the name, address and telephone number of the administrator, (b) details of the transfer arrangement, where known, (c) details of the relevant pension arrangement under which the benefit crystallisation event giving rise to the chargeable excess occurred, (d) the nature of the benefit crystallisation event referred to in paragraph (c) and the date on which it occurred, (e) the full name, last known address and, where known, the PPS Number of the non-member, (f) the amount of, and the basis of calculation of, the non-member’s appropriate share, and (g) such other information and particulars as the Revenue Commissioners may reasonably require for the purposes of this Chapter. (3C) (a) Where— (i) the provisions of subsection (2A) apply and a transfer amount has been applied, and (ii) at the date the subsequent administrator receives the certificate referred to in subsection (3B) the non-member’s retirement benefit under the transfer arrangement has crystallised and the non-member has exercised a relevant option under the transfer arrangement, then, where the subsequent administrator and the fund administrator are not the same person, the subsequent administrator shall establish the identity of the fund administrator and, within 21 days from receipt of the certificate, forward a copy of the certificate (in this section referred to as the ‘copy certificate’) to the fund administrator. (b) Where— (i) the provisions of subsection (2A) apply and a transfer amount has been applied, (ii) at the date of the benefit crystallisation event giving rise to the chargeable excess tax (in this paragraph referred to as the ‘event’) the non-member’s retirement benefit under the transfer arrangement has crystallised and the non-member has exercised a relevant option under the transfer arrangement, and (iii) the alternative circumstance referred to in subsection (2A)(d)(ii)(II)(A) arises, then, where the administrator and the fund administrator are not the same person, the administrator shall establish the identity of the fund administrator and, within 21 days from the end of the month in which the event occurs, provide to the fund administrator the certificate referred to in subsection (3B).

(3D) An administrator, subsequent administrator or fund administrator, as the case may be, shall within 21 days from— (a) in the case of an administrator (including an administrator who is either or both the subsequent administrator and the fund administrator), the end of the month in which the benefit crystallisation event giving rise to the chargeable excess tax occurs, or (b) in the case of a subsequent administrator or fund administrator, the date of receipt of a certificate or copy certificate, as the case may be, inform the non-member by way of a notification in writing of the non- member’s liability for the non-member’s appropriate share of the chargeable excess tax and, where at the time the notification is due to be made the administrator or the subsequent administrator, as the case may be, is aware that the non-member is the person solely liable for the non-member’s appropriate share, inform the non-member as part of the notification of that fact and of the fact that the tax is due and payable by the non-member to the Collector-General in accordance with section 787S(3) within 3 months of the date of the notification. (3E) Where a notification referred to in subsection (3D) is sent to a non- member in circumstances where the non-member is solely liable for the non-member’s appropriate share of the chargeable excess tax, a copy of the notice shall be sent by the administrator or the subsequent administrator, as the case may be, to the Revenue Commissioners at the same time.”, and (vi) by inserting the following after subsection (6): “(6A) (a) A subsequent administrator or a fund administrator, as the case may be, shall keep and retain a certificate referred to in subsection (3B) or a copy certificate referred to in subsection (3C), as appropriate, and (b) an administrator, subsequent administrator and fund administrator shall keep and retain a copy of a notification referred to in subsection (3D), for a period of 6 years following— (i) in the case of an administrator, the date of the benefit crystallisation event giving rise to the chargeable excess tax or, where a transfer amount has been applied and the administrator and the subsequent administrator are the same person, the later of that date and the date of crystallisation of the non-member’s retirement benefit under the transfer arrangement, (ii) in the case of a subsequent administrator in any other circumstance, the later of the date of crystallisation of the non-member’s retirement benefit under the transfer arrangement and the date of receipt of the certificate, or

(iii) in the case of a fund administrator, where the administrator and the fund administrator are the same person, the date of the benefit crystallisation event giving rise to the chargeable excess tax, and in any other circumstance, the date of receipt of the certificate or copy certificate, as the case may be, and on being so required by a notice given to the administrator in writing by an officer of the Revenue Commissioners make available to the officer within the time specified in the notice such certificates, copy certificates or notifications specified therein.”, (d) in section 787RA— (i) in subsection (1) by inserting “(including, where the provisions of section 787R(2A) apply, an individual who is a relevant member of a relevant pension arrangement)” after “in relation to an individual in respect of a relevant pension arrangement”, (ii) in subsection (1) by inserting “or the relevant individual’s appropriate share of that tax, as the case may be,” after “the income tax on the chargeable excess”, (iii) in subsection (3) by inserting “or the appropriate share of that tax, as the case may be,” after “the chargeable excess tax” wherever it occurs, (iv) in subsection (8) by inserting “or the appropriate share of that tax, as the case may be” after “a chargeable excess tax”, and (v) by inserting the following subsection after subsection (8): “(9) Where the provisions of section 787R(2A) apply, this section shall, with any necessary modifications, apply to the non-member in respect of the non-member’s appropriate share of the chargeable excess tax.”, and (e) in section 787S— (i) in subsection (1) — (I) by substituting “within 3 months from” for “within 3 months of”, and (II) by substituting the following for paragraph (e): “(e) details of the tax which the administrator is required to account for in relation to the chargeable excess, and where the administrator is the administrator of a relevant pension arrangement to which section 787R(2A) applies the return shall also contain— (i) where no transfer amount has been applied— (I) the name, address and PPS Number of the non-member, and (II) instead of the details referred to in paragraph (e), details of the relevant member’s and non-member’s appropriate share of the tax which the administrator is required to account for in relation to the chargeable excess, and (ii) where a transfer amount has been applied— (I) other than where the administrator, subsequent administrator and fund administrator are the same person, the name, address and telephone number of the subsequent administrator or fund administrator, as the case may be,

(II) the name, last known address and, where known, the PPS Number of the non-member, and (III) instead of the details referred to in paragraph (e), the amount of, and the basis of calculation of— (A) the relevant member’s appropriate share of the tax that the administrator is required to account for, and (B) the non-member’s appropriate share of the tax that the subsequent administrator or fund administrator, as the case may be, is required to account for by way of a separate return under this section.”, (ii) by inserting the following after subsection (1): “(1A) Where the provisions of section 787R(2A) apply and a transfer amount has been applied, then— (a) where the transfer arrangement is the relevant pension arrangement of the relevant member, the subsequent administrator, within 3 months from— (i) the end of the month in which the benefit crystallisation event giving rise to the chargeable excess tax occurs where, at the date of that event, the non-member is in receipt of a pension payable from the transfer arrangement, (ii) the end of the month in which a sum representing the non- member’s accrued rights under the transfer arrangement (in this paragraph referred to as the ‘first-mentioned arrangement’) is transferred (in whole or in part) to another relevant pension arrangement, or (iii) the end of the month in which the non-member’s retirement benefit under the first-mentioned arrangement crystallises, or (b) where the transfer arrangement is not the relevant pension arrangement of the relevant member and the subsequent administrator has received a certificate referred to in section 787R(3B), the subsequent administrator, within 3 months from— (i) the end of the month in which the subsequent administrator receives the certificate where, at the date of receipt of the certificate, the non-member is in receipt of a pension payable from the transfer arrangement, (ii) the end of the month in which a sum representing the non- member’s accrued rights under the transfer arrangement (in this paragraph referred to as the ‘first-mentioned arrangement’) is transferred (in whole or in part) to another relevant pension arrangement, or (iii) the end of the month in which the non-member’s retirement benefit under the first-mentioned arrangement crystallises, or (c) where— (i) the fund administrator has received a certificate or copy certificate referred to in section 787R(3C), the fund administrator within 3 months from the end of the month in which the certificate or copy certificate is received, or

(ii) the fund administrator and the administrator of the pension arrangement in respect of which the benefit crystallisation event giving rise to the chargeable excess tax arises, are the same person, the fund administrator within 3 months from the end of the month in which the benefit crystallisation event occurs, as the case may be, shall— (i) make a return to the Collector-General which shall contain— (I) the name, address and telephone number of the subsequent or fund administrator, as the case may be, (II) the name, address and PPS Number of the non-member, (III) the name, address and telephone number of the administrator of the relevant pension arrangement from which the transfer amount arose, (IV) the amount of, and the basis of calculation of, the non-member’s appropriate share of the tax, and (V) the amount of the non-member’s appropriate share of the tax which the subsequent or fund administrator, as the case may be, is required to account for, and (ii) where the amount of the non-member’s appropriate share of the tax which the subsequent or fund administrator is required to account for is less than the amount of that share, notify the non-member in writing at the time the return to the Collector-General is made of that fact and that the balance (being the difference between the amount of the appropriate share and the amount of that share to be accounted for by the subsequent or fund administrator) is due and payable by the non-member to the Collector-General in accordance with this section within 3 months from the date of the notification. (1B) Where a notification referred to in subsection (1A)(ii) is sent to a non-member, a copy of the notice shall be sent by the fund administrator or the subsequent administrator, as the case may be, to the Revenue Commissioners at the same time. (1C) Where a non-member receives a notification referred to in subsection (1A)(ii) or a notification referred to in section 787R(3D) (in the circumstance referred to in section 787R(3E)), he or she shall within 3 months from the date of the notification make a return to the Collector-General which shall contain— (a) the name, address and telephone number of the subsequent or fund administrator, as the case may be, (b) the name, address and PPS Number of the non-member, (c) the amount of the non-member’s appropriate share of the tax, (d) the amount of the non-member’s appropriate share of the tax accounted for by the subsequent or fund administrator, as the case may be, and (e) the amount of the non-member’s appropriate share of the tax which the non-member is required to account for.”,

(iii) in subsection (3) by substituting “(including a relevant member’s or non- member’s appropriate share of that tax) which a person is required to account for, in whole or in part,” for “which a person is required to account for”, and (iv) in subsection (5) by inserting “or, where the provisions of section 787R(2A) apply, whether of the subsequent administrator, fund administrator, relevant member or non-member, as the case may be” after “whether of the administrator of a relevant pension arrangement or the individual”.

Chapter 4

Income Tax, Corporation Tax and Capital Gains Tax Farm taxation 20. Chapters 1 and 2 of Part 23 of the Principal Act are amended— (a) in section 657— (i) in subsection (1), in the definition of “an individual to whom subsection (1) applies”, by substituting the following for “but paragraphs (b) and (d) shall not apply in a case where the wife of an individual is treated for tax purposes as not living with her husband, or the civil partner of an individual is treated for tax purposes as not living with his or her civil partner;”: “but— (i) a reference to a trade in paragraphs (a) and (b) does not include a trade— (I) which is ancillary to the trade of farming, and (II) which is carried on by the individual or his or her spouse or civil partner on the farm land (within the meaning of section 664) used by the individual for the trade of farming, and (ii) paragraphs (b) and (d) shall not apply in a case where the wife of an individual is treated for tax purposes as not living with her husband, or the civil partner of an individual is treated for tax purposes as not living with his or her civil partner;”, (ii) in subsection (4)(b) by substituting “any of the 4” for “either of the 2”, (iii) by inserting the following after subsection (4): “(4A) Where an individual was first charged to tax in accordance with subsection (5) for the year of assessment 2014, then the individual shall be charged to tax for the year of assessment 2015 in accordance with that subsection as if a reference in that subsection to 5 years was a reference to 4 years.”, (iv) in subsection (5) by substituting “5 years” for “3 years” in each place, (v) by substituting the following for subsection (7): “(7) Subject to subsection (7A), where for a year of assessment an individual is by virtue of subsection (6) chargeable to income tax in respect of profits or gains from farming in accordance with subsection (5) and the individual was so chargeable for each of the 5 years of assessment immediately preceding the year of assessment, he or she may, on including a claim in that behalf with the return required under Chapter 3 of Part 41A for the year of assessment, elect to be charged to tax for that year of assessment in accordance with Chapter 3 of Part 4; but where in the case of an individual subsection (6) does not apply for any year of assessment by reason of paragraph (b)(i) of that subsection, the individual shall be deemed to be entitled to elect and to have duly elected, as respects that year of assessment, in accordance with this subsection.”,

(vi) by inserting the following after subsection (7): “(7A) (a) Where as respects the year of assessment 2015 an individual duly elects or is deemed to have elected in accordance with subsection (7) that subsection shall be construed as if a reference to 5 years in that subsection was a reference to 3 years, and (b) where as respects the year of assessment 2016 an individual duly elects or is deemed to have elected in accordance with subsection (7) that subsection shall be construed as if a reference to 5 years in that subsection was a reference to 4 years.”, (vii) in subsection (8) — (I) by substituting the following for paragraph (b): “(b) there shall be made such assessment or assessments, if any, as may be necessary to secure that the amount of profits or gains from farming on which the individual who, in respect of the year of assessment 2015 duly elects or is deemed to have elected in accordance with subsection (7) is charged for each of the years of assessment 2012 and 2013, shall be not less than the amount on which the individual was charged by virtue of subsection (6) in accordance with subsection (5) for the year of assessment 2014,”, and (II) by inserting the following after paragraph (b): “(c) notwithstanding section 959Z, there shall be made such assessment or assessments, if any, as may be necessary to secure that the amount of profits or gains from farming on which the individual, in the case of an individual referred to in subsection (4A), is charged to tax for each of the 3 years immediately preceding the year preceding the year of assessment as respects which the individual elects or is deemed to have elected in accordance with subsection (7), shall be not less than the amount on which the individual is charged by virtue of subsection (6) in accordance with subsection (5) for the preceding year of assessment, and (d) in any other case, notwithstanding section 959Z, there shall be made such assessment or assessments, if any, as may be necessary to secure that the amount of profits or gains from farming on which the individual is charged to tax for each of the 4 years immediately preceding the year preceding the year of assessment as respects which the individual elects or is deemed to have elected in accordance with subsection (7), shall be not less than the amount on which the individual is charged by virtue of subsection (6) in accordance with subsection (5) for the preceding year of assessment.”, and (viii) by substituting the following for subsection (11):

“(11) Where for any year of assessment a loss is aggregated with profits or gains in accordance with subsection (5)(b) and the amount of the loss is in excess of the profits or gains— (a) in the case of an individual referred to in subsection (4A), one-quarter of the amount of such excess shall be deemed for the purposes of Chapter 1 of Part 12 to be a loss sustained in the trade of farming in the final year of the 4 years, and (b) in any other case, one-fifth of the amount of such excess shall be deemed for the purposes of Chapter 1 of Part 12 to be a loss sustained in the trade of farming in the final year of the 5 years, on the average of the profits or gains of which the individual is to be charged to tax for that year of assessment, and any loss so aggregated shall not be eligible for relief under any provision of the Income Tax Acts apart from this subsection.”, (b) in section 664(1)(a) — (i) by substituting the following for the definition of “qualifying lessee”: “‘qualifying lessee’, in relation to a qualifying lessor or qualifying lessors, means, as the case may be— (i) an individual who— (I) is not connected with the qualifying lessor or with any of the qualifying lessors, and (II) uses any farm land leased from the qualifying lessor or the qualifying lessors for the purpose of a trade of farming carried on solely or in partnership, or (ii) a company which— (I) is not connected with the qualifying lessor or with any of the qualifying lessors, (II) is not controlled either directly or indirectly by any person who is connected with the qualifying lessor or with any of the qualifying lessors, and (III) uses any farm land leased from the qualifying lessor or the qualifying lessors for the purpose of a trade of farming carried on solely or in partnership;”, (ii) in the definition of “qualifying lessor” by deleting subparagraph (i), (iii) in subparagraph (ii)(VIII) of the definition of “the specified amount” by substituting “in the period beginning on 1 January 2007 and ending on 31 December 2014” for “on or after 1 January 2007”, (iv) in the definition of “the specified amount” by inserting the following after subparagraph (ii)(VIII): “(IX) on or after 1 January 2015— (A) €40,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 15 years or more, (B) €30,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 10 years or more, other than a case to which clause (A) applies, (C) €22,500, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, other than a case to which either clause (A) or clause (B) applies, and

(D) €18,000, in any other case,”, and (v) in subparagraph (iii) of the definition of “the specified amount” by substituting “, (VIII) or (IX),” for “or (VIII),”, (c) in section 664(1)(b) by substituting the following for subparagraph (vi): “(vi) from a qualifying lease or qualifying leases made in the period beginning on 1 January 2007 and ending on 31 December 2014, and from a qualifying lease made before 1 January 2007, the specified amount shall not exceed— (I) €20,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 10 years or more, (II) €15,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, other than a case to which clause (I) applies, and (III) €12,000, in any other case; (vii) from a qualifying lease or qualifying leases made on or after 1 January 2015, and from a qualifying lease made at any other time, the specified amount shall not exceed— (I) €40,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 15 years or more, (II) €30,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 10 years or more, other than a case to which clause (I) applies, (III) €22,500, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, other than a case to which either clause (I) or clause (II) applies, and (IV) €18,000, in any other case.”, (d) in section 667B, in paragraph 2 of the Table to that section: (i) in subparagraph (p) by substituting “Applied Agriculture,” for “Applied Agriculture.”, and (ii) by inserting the following after subparagraph (p): “(q) Bachelor of Science (Honours) in Sustainable Agriculture.”, and (e) in section 667C(3A) by substituting the following for paragraph (b): “(b) Subject to paragraph (c), a specified person shall be entitled to relief in respect of relevant deductions of an amount not exceeding €7,500 in the aggregate in the qualifying period. (c) In the case of a qualifying period commencing on or after 1 January 2014, a specified person shall be entitled to relief in respect of relevant deductions of an amount not exceeding €15,000 in the aggregate in that qualifying period.”.

Amendment of section 206 of Principal Act (income from investments) 21. Section 206 of the Principal Act is amended— (a) by renumbering the existing provision as subsection (1), and (b) by inserting the following after subsection (1): “(2) The Minister for Social Protection shall be entitled to exemption from tax in respect of the income derived from accounts held under section 9 of the Social Welfare Consolidation Act 2005 .”.

Amendment of Chapter 4 of Part 8 of Principal Act (interest payments by certain deposit takers) 22.

(b) in the case of a relevant completion, so much of the aggregate amount at any time of any relevant deposits held in the name of a first-time purchaser, individually or jointly with another first-time purchaser only, as does not exceed 20 per cent of the completion value of the dwelling; ‘relevant savings interest’ means relevant interest paid— (a) in the case of a relevant purchase, at any time during the period of 48 months ending on the date of the relevant purchase by a first-time purchaser, to the first-time purchaser in respect of relevant savings, or (b) in the case of a relevant completion, at any time during the period of 48 months ending on the relevant completion date, to the first-time purchaser in respect of relevant savings.

Amendment of section 267M of Principal Act (tax rate applicable to certain deposit interest received by individuals) 23. Section 267M of the Principal Act is amended in subsection (2) — (a) in paragraph (a) by deleting “and subject to paragraph (b) ”, and (b) by deleting paragraph (b).

Amendment of section 481 of Principal Act (relief for investment in films) 24. (1) Section 481 of the Principal Act (as amended by section 21 of the Finance Act 2013 ) is amended— (a) in subsection (1), in paragraph (b) of the definition of “qualifying company”, by deleting “and distribution”, (b) in subsection (2A)— (i) in paragraph (b) — (I) in subparagraph (ii) by inserting “, any company controlled by the producer company” after “qualifying company” where it first occurs, (II) by deleting “or” before subparagraph (iii), (III) in subparagraph (iii) by substituting “€125,000, or”, for “€200,000.”, and (IV) by inserting the following after subparagraph (iii): “(iv) the total cost of the production of the film is less than €250,000.”, and (ii) by substituting the following for paragraph (c): “(c) Nothing in this section shall be construed as obliging the Revenue Commissioners to issue a certificate under paragraph (a).”, and (c) in subsection (2C)— (i) by substituting the following for paragraph (a): “(a) unless the company, in relation to a qualifying film, following the date on which an application has been made under subsection (2A) (d), notifies the Revenue Commissioners in writing within 7 days of the first incurring of expenditure to which subsection (2A)(g)(iv) refers.”, and (ii) in paragraph (g)(i) by deleting “and distribution”.

Securities issued by company established under section 5 of Gas Regulation Act 2013 25. (1) The Principal Act is amended— (a) in the Table to section 37 by inserting the following before “Securities issued on or after the 24th day of October 2013 by Irish Water.”: “Securities issued on or after the 23rd day of October 2014 by the company established pursuant to section 5 of the Gas Regulation Act 2013 .”, and (b) in section 607(1)(d) by inserting “the company established pursuant to section 5 of the Gas Regulation Act 2013 ,” before “Irish Water”.

Amendment of section 766 of Principal Act (tax credit for research and development expenditure) 26. Section 766 of the Principal Act is amended— (a) in subsection (1)(a), in the definition of “qualifying group expenditure on research and development”, by substituting the following for “ ‘qualifying group expenditure on research and development’, in relation to a relevant period, shall be determined by the following formula—”: “‘qualifying group expenditure on research and development’, in relation to— (a) relevant periods commencing on or after 1 January 2015, shall have the same meaning as that assigned to ‘group expenditure on research and development’, and (b) a relevant period commencing on or before 31 December 2014, shall be determined by the following formula—”, and (b) in subsection (7C)— (i) in paragraph (a), by inserting “commencing on or after 1 January 2010” after “a relevant period” where it first occurs, and (ii) in paragraph (a)(ii), by inserting “in the State” after “are carried on”.

Amendment of Part 16 of Principal Act (income tax relief for investment in corporate trades — employment and investment incentive and seed capital scheme) 27. (1) Part 16 of the Principal Act is amended— (a) in section 488(1) — (i) by inserting the following definition: “‘internationally traded financial services’ means the services specified in the schedule to the Industrial Development (Service Industries) Order 2010 ( S.I. No. 81 of 2010 ) other than those falling within the meaning of subparagraph (b) or (c) of the definition of ‘relevant trading activities’;”, (ii) by substituting the following for the definition of “relevant period”: “‘relevant period’, in relation to relief in respect of any eligible shares issued by a company, means— (a) subject to paragraphs (b), (c) and (d), the period beginning on the date on which the shares were issued and ending 4 years after that date or, where the company was not at that date carrying on relevant trading activities, 4 years after the date on which it subsequently began to carry on such activities, (b) as respects a relevant employment, the period beginning on the date on which the shares are issued or, if later, the date on which the employment commences and ending 12 months after that date, (c) as respects a specified individual, the period beginning on the date on which the shares are issued and ending either one year after that date or, where the company was not at that date carrying on relevant trading activities, one year after the date on which it subsequently began to carry on such activities, and (d) as respects sections 489(2)(b) and 501(1)(a)(iii) and the definitions of ‘average relevant amount’ and ‘employment relevant number’ in this subsection, the period beginning on the date on which the shares were issued and ending 3 years after that date or, where the company was not at that date carrying on relevant trading activities, 3 years after the date on which it subsequently began to carry on such activities;”, (iii) in the definition of “relevant trading activities” by deleting paragraph (h), and (iv) in the definition of “specified period” by substituting “4 years” for “3 years”, (b) in section 489(2) — (i) in paragraph (a) by substituting “thirty fortieths” for “thirty forty-firsts”, and (ii) in paragraph (b) by substituting “ten fortieths” for “eleven forty-firsts”, (c) in section 491— (i) in subsection (2) by substituting “€15,000,000” for “€10,000,000”, (ii) in subsection (3) by substituting “€15,000,000” for “€10,000,000”, and

(iii) in subsection (4) by substituting “€5,000,000” for “€2,500,000”, (d) in section 492(3) by substituting “4 years” for “3 years”, (e) in section 494— (i) in subsection (1) by deleting the definition of “assisted area”, (ii) by substituting the following for subsection (4): “(4) The company shall be a micro, small or medium-sized enterprise within the meaning of Annex 1 to Commission Regulation (EU) No. 651/2014 of 17 June 2014 1 .”, and (iii) by substituting the following for subsection (5): “(5) A company whose relevant trading activities includes internationally traded financial services shall not be a qualifying company unless it is in receipt of a certificate from Enterprise Ireland to the effect that its activities are of a kind specified in the schedule to the Industrial Development (Service Industries) Order 2010 ( S.I. No. 81 of 2010 ).”, (f) in section 501 by inserting the following after subsection (8): “(9) A claim for relief under section 489(2) or 493 in respect of eligible shares in a company shall not be allowed unless, at the time the claim is made, the company qualifies for a tax clearance certificate within the meaning of section 1095.”, and (g) in section 507(1) by substituting the following for “section 7.1 of the Community Guidelines on State Aid to Promote Risk Capital Investments in Small and Medium-Sized Enterprises2 .”: “section 5.4 of the Community Guidelines on State aid to promote risk finance investments 3 .”.

Amendment of Chapter 3 of Part 38 of Principal Act (other obligations and returns) 28. The Principal Act is amended in Chapter 3 of Part 38 by inserting the following after section 891E: “Returns of certain information by financial institutions 891F. (1) This section provides for the collection and reporting of certain information in respect of financial accounts held by any person who is regarded by virtue of the laws of a jurisdiction other than the State as resident in that jurisdiction for the purposes of tax.

and (ii) customers to provide a reporting financial institution with their TIN on request by the reporting financial institution where, on or after a date specified in the regulations— (I) such customers enter into a contractual relationship with the reporting financial institution, or (II) the reporting financial institution undertakes any transaction for such customers, being respectively— (A) a relationship which results in the opening, operation, administration or management of a financial account, or (B) a transaction which arises in relation to a financial account, (n) defining ‘books’ and ‘records’ for the purposes of the regulations, (o) in relation to any of the matters specified in the preceding paragraphs, determining the manner of keeping records and setting the period for the retention of records so kept, (p) enabling the authorisation of Revenue officers, for the purpose of such officers— (i) requiring— (I) the production of books, records or other documents, (II) the provision of information, explanations and particulars, and (III) persons to give all such assistance as may reasonably be required and as is specified in the regulations, in relation to financial accounts within such time as may be specified in the regulations, and (ii) making extracts from or copies of books, records or other documents or requiring that copies of such books, records and documents be made available, and (q) specifying such supplemental and incidental matters as appear to the Revenue Commissioners to be necessary— (i) to enable persons to fulfil their obligations under the regulations, or (ii) for the general administration and implementation of the regulations, including— (I) delegating to a Revenue officer the authority to perform any acts and discharge any functions authorised by this section or the regulations to be performed or discharged by the Revenue Commissioners, and (II) the authorisation by the Revenue Commissioners of Revenue officers to exercise any powers, to perform any acts or to discharge any functions conferred by this section or by the regulations.

(8)

Section 4

of the Post Office Savings Bank Act 1861 shall not apply to the disclosure of information required to be included in a return made under the regulations made under this section and, accordingly, this section shall apply to information to which, but for this subsection, the said section 4 would apply.