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5 2002

FINANCE ACT, 2002

PART 2

Excise

Chapter 1

Consolidation and Modernisation of Betting Duties Law

Interpretation (Chapter 1).

64. —In this Chapter, save where the context otherwise requires—

“duty” means, other than in sections 65 and 66, the duty of excise imposed by section 67 ;

“premises” has the same meaning as it has in the Betting Act, 1931 ;

“proprietor” has the same meaning as it has in the Betting Act, 1931 ;

“register” means the register of bookmaking offices kept by the Revenue Commissioners under the Betting Act, 1931 ;

“registered premises” has the same meaning as it has in the Betting Act, 1931 ; and

“totalisator” has the same meaning as it has in the Totalisator Act, 1929 .

Bookmaker's Licence Duty.

65. —There shall be charged, levied and paid for and upon every licence to act and carry on business as a bookmaker issued under the Betting Act, 1931 , and on the renewal of every such licence, an excise duty of €250.

Registered Bookmaking Premises Duty.

66. —(1) An excise duty of €380 shall be charged, levied and paid on the registration and also on every renewal of the registration of any premises in the register of premises maintained by the Revenue Commissioners under the Betting Act, 1931 , in which the business of bookmaking is carried on.

(2) The duty imposed by this section shall be charged and levied on and shall be paid by the person who is entered in such register as the proprietor of the premises concerned.

(3) Where the excise duty of €380 imposed by this section, has been paid in respect of the registration or the renewal of the registration of any premises in the said register for any year, the said excise duty shall not (unless the registration is renewed under section 78 ) be charged or levied on any subsequent registration, taking effect within the said year, of the said premises in the said register.

(4) In this section the word “year” means a period of twelve months beginning on any 1st day of December.

Betting Duty.

67. —(1) There shall be charged, levied and paid on and by every bookmaker who makes, lays or otherwise enters into any bets an excise duty (in this Chapter referred to as “betting duty”) at the rate of 2 per cent on the amount of every bet entered into by him or her.

(2) For the purpose of this section the amount of a bet shall be—

(a) the sum of money or the open market value of other consideration which by the terms of the bet the bookmaker will be entitled to receive, retain, or take credit for if the event the subject of the bet is determined in his or her favour, or

(b) where the amount cannot be determined in accordance with paragraph (a) at the time the bet is placed, the amount of the unit stake.

(3) Whenever it is proved to the satisfaction of the Revenue Commissioners—

(a) that a bet in respect of which the duty imposed by this section is chargeable has become void for any reason other than the mutual consent of the parties thereto, or

(b) that the amount of a bet in respect of which the said duty is chargeable is calculated in accordance with subsection (2) (a) has not been and is not likely to be collected by the bookmaker,

the Revenue Commissioners may, subject to such conditions as they may think fit to impose, either (as the case may require) repay the duty paid or remit the duty chargeable in respect of such bet.

(4) Every person who fails or neglects to pay, any sum payable by him or her in respect of betting duty imposed by this section within the prescribed period, shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of €1,900.

Exemption from duty on bets.

68. —(1) (a) Betting duty shall not be charged or levied on bets where such bets—

(i) are entered into during and at a race-meeting held at an authorised racecourse, within the meaning of the Irish Horseracing Industry Act, 1994 , and are in respect of one or more than one event taking place at the meeting or at a place other than at the meeting, or

(ii) are entered into during a meeting at which a series of greyhound races is held, and at the place at which such meeting is held, and are in respect of one or more than one event taking place at the meeting or at a place other than at the meeting.

(b) The provisions of paragraph (a) shall not apply to bets entered into by any means of telecommunications.

(2) Betting duty shall not be charged or levied on totalisator bets accepted in registered premises for and on behalf of Horse Racing Ireland or Bord na gCon or a subsidiary (within the meaning of section 2 of the Horse and Greyhound Racing Act, 2001 ) of either body operating under a licence granted under the Totalisator Act, 1929.

Time when duty becomes due.

69. —Betting duty shall become due at the time the bet is accepted by the bookmaker.

Returns.

70. —Every person liable to pay betting duty shall within 15 days following the end of the month or such other period as the Revenue Commissioners may determine, furnish to the officer of the Revenue Commissioners designated for that purpose a true and correct return of the amount of betting duty which became due by him or her during the previous month or such other period and shall at the same time remit to the Revenue Commissioners the amount of the duty, if any, payable by him or her in respect of that month or period.

Payment of duty with bet.

71. —(1) Without prejudice to the provisions of section 67 , every bookmaker who makes, lays or otherwise enters into any bet, shall, at the time at which he or she accepts such bet from any person, require from such person an additional payment of an amount equal to the amount of the betting duty duly payable on the amount of that bet under section 67 unless the exemption from betting duty provided for in section 68 applies.

(2) Notwithstanding subsection (1) a bookmaker may by notice in writing to the Revenue Commissioners, elect to pay the amount of the betting duty on a class or classes of bets specified in the notice.

(3) Betting duty which a bookmaker has elected to pay to the Revenue Commissioners pursuant to subsection (2) shall not be allowed as a deduction by any person in computing the amount of profits or losses of a bookmaking business for Income Tax or Corporation Tax purposes.

Estimate of duty payable.

72. —(1) Where the Revenue Commissioners have reason to believe that a person was liable to remit betting duty in relation to any month or period and the person has not remitted any duty in relation to that month or period, they may—

(a) estimate the amount of duty which should have been remitted by the person in accordance with section 70 within the month or period specified by the Revenue Commissioners, and

(b) serve notice on the person of the amount so estimated.

(2) Where a notice is served under subsection (1) on a person, the following provisions shall apply:

(a) the person may, if he or she claims that he or she is a person who is not liable to remit any betting duty for the month or period to which the notice relates, appeal in accordance with sections 145 and 146 of the Finance Act, 2001 , and the Appeal Commissioners decision shall be final and conclusive,

(b) on the expiration of the periods provided for in sections 145 and 146 of the Finance Act, 2001 , if no appeal is lodged, or, if such an appeal has been lodged, on final determination of the Appeal Commissioners in respect of the appeal against the appellant, the estimated betting duty specified in the notice shall be recoverable in the same manner and by the like proceedings as if the person had furnished within the prescribed period a true and correct return for the month or period to which the estimate relates showing as due by him or her such estimated duty,

(c) if at any time after the service of the notice by the Revenue Commissioners under subsection (1) the person furnishes a return in respect of the month or period specified in the notice and pays the betting duty in accordance with the return, together with any interest and costs which may have been incurred in connection with the default, the notice shall stand discharged and any excess of betting duty which may have been paid shall be repaid,

(d) where action has been taken for recovery of betting duty specified in a notice issued under subsection (1), being action by way of the institution of proceedings in any court or the issue of a certificate under section 962 of the Taxes Consolidation Act, 1997 , paragraph (c) shall not, unless the Revenue Commissioners otherwise direct, apply in relation to that notice until the said action has been completed.

(3) A notice given by the Revenue Commissioners under subsection (1) may extend to two or more months or periods.

Assessment of duty payable.

73. —(1) Where the Revenue Commissioners have reason to believe that the amount of betting duty due and payable to the Revenue Commissioners in respect of one or more months or periods by a person was greater than the amount of duty, if any, paid by him or her, then, without prejudice to any other action which may be taken, they may make an assessment in one sum of the total amount which in their opinion should have been paid, and may serve a notice on the person specifying—

(a) the total amount of the betting duty so assessed,

(b) the total amount of the duty, if any, paid by him or her in relation to the said period,

(c) the total amount so due and payable as aforesaid (having given credit for the amount of any duty referred to in paragraph (b)) and the amount so due and payable is referred to subsequently in this section as the “amount due”.

(2) Where a notice is served under subsection (1) on a person, the following provisions shall apply—

(a) the person may, if he or she claims that the amount due is excessive, appeal in accordance with sections 145 and 146 of the Finance Act, 2001 , and

(b) if no notice of appeal is received, on the expiration of the periods provided for in sections 145 and 146 of the Finance Act, 2001 , or, if notice of appeal is received, on the determination of the appeal by agreement or otherwise, the amount due or the amended amount due as determined in relation to the appeal, shall become due and payable as if the betting duty were duty which the person was liable to pay for the month or period or months or periods to which the notice relates.

(c) Where a person appeals an assessment under subsection (1) within the time limits provided for in subsection (2), he or she shall pay to the Revenue Commissioners the amount which he or she believes to be due, and if—

(i) the amount paid is greater than 80 per cent of the amount of the duty found to be due on the determination of the appeal, and

(ii) the balance of the amount found to be due on the determination of the appeal is paid within one month of the date of such determination, interest in accordance with section 74 shall not be chargeable from the date of raising of the assessment.

Interest on late payment.

74. —(1) Where any amount of betting duty becomes payable under section 67 and is not paid, simple interest on the amount shall be paid by the person liable to pay the duty and such interest shall be calculated from the date on which the amount became payable at a rate of 0.0322 per cent for each day or part of a day during which the amount remains unpaid.

(2) Subsection (1) shall apply—

(a) to duty recoverable by virtue of a notice under section 72 of this Chapter as if the duty were duty which the person was liable to pay for the respective month or period or months or periods specified in the notice, and

(b) to duty recoverable by virtue of a notice under section 73 as if (whether a notice of appeal under that section is received or not) the duty were duty which the person was liable to pay for the month or period or months or periods specified in the notice.

Recovery of duty.

75. —(1) (a) Without prejudice to any other mode of recovery the provisions of any enactment relating to the recovery of income tax and the provisions of any rule of court so relating shall apply subject to any necessary modifications to the recovery of excise duty payable in accordance with this Chapter and the regulations thereunder as they apply to recovery of income tax.

(b) In particular and without prejudice to the generality of paragraph (a), that paragraph applies the provisions of sections 962, 963, 964(1), 966, 967 and 968 of the Taxes Consolidation Act, 1997 .

(c) Provisions as applied by this section shall so apply subject to any modification specified by regulations under this Chapter.

(2) In proceedings instituted for the recovery of any amount of duty under this section or any regulations made under this Chapter—

(a) a certificate signed by an officer of the Revenue Commissioners which certifies that a stated amount of betting duty is due and payable by the defendant shall be evidence, until the contrary is proved, that that amount is so due and payable, and

(b) a certificate certifying as aforesaid and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed, until the contrary is proved, to have been signed by an officer of the Revenue Commissioners.

(3) Any reference in the foregoing subsections to an amount of duty includes a reference to interest payable in the case in question under section 74 .

(4) Subject to this section, the rules of the court concerned for the time being applicable to civil proceedings shall apply to proceedings by virtue of this section or any regulations under this Chapter.

(5) Where an order which was made before the coming into operation of this Chapter under section 2 of the Court Officers Act, 1945 , contains a reference to levy under a certificate issued under section 962 of the Taxes Consolidation Act, 1997 , that reference shall be construed as including a reference to levy under a certificate issued under the said section 962 as extended by this section.

Penalty for false statement.

76. —Any person who, in a return made by him or her to the Revenue Commissioners in relation to or for the purposes of the duty on bets imposed by section 67 of this Chapter, makes any statement or representation which is to his or her knowledge false or misleading, shall be guilty of an offence under this section and shall be liable on summary conviction thereof to an excise penalty of €1,900.

Regulations for payment of duty on bets.

77. —(1) The Revenue Commissioners may make regulations for securing the payment of betting duty and generally for carrying the provisions of this Act in relation to such duty into effect and in particular for—

(a) entering into arrangements with and taking security from bookmakers,

(b) providing for the submission of returns and payment of betting duty,

(c) requiring the maintenance and production by bookmakers of their books, accounts, vouchers, and other records relating to the bookmaking business carried out by them, and

(d) granting to bookmakers remissions or refunds (as the case may require) of betting duty in cases in which the whole or any part of the contingent liability of a bookmaker in respect of a bet made, laid, or otherwise entered into by him or her is shown to the satisfaction of the Revenue Commissioners to have been transferred by such bookmaker to another bookmaker (who is liable to pay the duty on the transferred bets) by means of a fresh bet made, laid, or otherwise entered into by the first-mentioned bookmaker with the second-mentioned bookmaker.

(2) Every person who contravenes or fails to comply with a regulation made under this section shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of €1,900.

De-registration of bookmaking premises.

78. —(1) Where, in respect of any registered premises, arrears of duty are due and owing or any return which is required by the Revenue Commissioners to be furnished in respect of the premises is not furnished within such period as is for the time being specified for that purpose, the Revenue Commissioners may cause a notice in writing to be sent to the registered proprietor of the said premises stating that, if the said arrears are not paid or the said returns are not furnished within seven days (or such greater period as the notice may specify) from the date on which the said notice is sent, the premises may be removed from the register under subsection (3).

(2) Any notice under subsection (1) shall be in such form as the Revenue Commissioners may prescribe and shall be sent by post to the registered proprietor as aforesaid at the registered premises to which it relates.

(3) If the arrears or the returns referred to in subsection (1) are not paid or furnished, as the case may be, within the period specified in a notice sent under that subsection, the Revenue Commissioners may, notwithstanding the provisions of section 12 of the Betting Act, 1931 , remove from the register the registered premises to which the notice relates.

(4) Whenever any premises are removed from the register under subsection (3), the person who was the registered proprietor of such premises immediately before such removal shall, on demand in writing delivered at or sent by post to such premises, deliver or send to the Revenue Commissioners the latest certificate of registration of such premises issued under section 12 of the Betting Act, 1931 , or the latest certificate of renewal of registration of such premises issued under the said section 12 or subsection (6), and a person who fails so to deliver or send such certificate within seven days after such demand shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of €1,900.

(5) (a) Subject to paragraph (b), where—

(i) all arrears of duty which are due and owing in respect of any premises which were removed from the register under subsection (3) are paid, and

(ii) all returns required by regulations made by the Revenue Commissioners to be furnished in respect of the premises are furnished,

the Revenue Commissioners shall, not later than seven days after the date on which the said arrears are paid and the said returns are furnished, renew the registration of the premises in the register and shall issue to the person who was the registered proprietor of the premises immediately before the premises were removed from the register a certificate in the prescribed form of such renewal of registration on payment of the excise duty referred to in paragraph (c).

(b) The registration of premises shall not be renewed under paragraph (a):

(i) on any date later than the 30th day of November next after the date on which the premises were last removed from the register under subsection (3), or

(ii) if any of the circumstances by reference to which premises would be removed from the register under section 17 of the Betting Act, 1931 , exist in respect of the said premises at the time at which such renewal would otherwise be granted under paragraph (a).

(c) The duty of excise imposed by section 66 , on the registration and on the renewal of the registration of any premises in which the business of bookmaking is carried on shall be charged in the sum of €2,000 on the renewal of the registration of premises in the register under this subsection and, notwithstanding section 12(3) of the Betting Act, 1931 , the said renewal shall commence and take effect from the date on which the certificate of such renewal is issued by the Revenue Commissioners under paragraph (a).

(6)  (a) A person shall not, in the course of carrying on business as a bookmaker or acting as a bookmaker, accept a bet in any premises which are not for the time being registered in the register.

(b) A person who accepts a bet in contravention of this subsection shall, without prejudice to any other penalty to which he or she may be liable, be guilty of an offence and shall be liable on summary conviction to an excise penalty of €1,900.

(c) This subsection shall not apply to a licensed bookmaker who is lawfully carrying on the business of a bookmaker at, or in the precincts of, an authorised racecourse, a greyhound race track or an authorised coursing meeting in accordance with the Irish Horseracing Industry Act, 1994 or the Greyhound Industry Act, 1958 .

(7) Any person employed by the registered proprietor of registered premises as a clerk or assistant in those premises or any other person acting for or on behalf of the said proprietor who makes any entry on any slip or other record by means of which a bet is made, knowing that the said entry is false, or who substitutes for any such slip or record another document which is false, or who makes any entry in any book or record kept for the purpose of recording particulars of bets in the said premises knowing that the said entry is false or who is otherwise knowingly concerned or involved in the fraudulent evasion or an attempt at evasion of duty shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of €1,900.

Nomination of officers.

79. —The Revenue Commissioners may nominate any officer of the Revenue Commissioners to perform any acts and discharge any functions authorised by this Chapter to be performed or discharged by the Revenue Commissioners.

Repeals.

80. —The enactments set out in Schedule 3 are repealed to the extent mentioned in column (3) of that Schedule opposite the reference to the enactment concerned.

Saver.

81. —(1) In this section “repealed enactments” means the enactments repealed or revoked under section 80 .

(2) If, and in so far as a provision of this Chapter operates, as and from the coming into operation of this Chapter, in substitution for a provision of the repealed enactments, any order or regulation made or having effect as if made, and anything done or having effect as if done, under the substituted provision before that day is to be treated on and from that day as if it were an order or regulation made or a thing done under the provision of this Chapter which so operates.

Continuity.

82. —(1) The provisions of this Chapter shall apply subject to so much of any Act which contains provisions relating to or affecting these 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.

(2) The continuity of the operation of the law relating to excise duties shall not be affected by the substitution of this Chapter for the repealed enactments.

(3) Any reference, whether express or implied, in any enactment or document (including this Chapter)—

(a) to any provision of this Chapter, or

(b) to things done or to be done under or for the purposes of any provision of this Chapter,

shall, if and in so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision in the repealed enactments applied or had applied, a reference to, or, as the case may be, to things done or to be done under or for the purposes of, that corresponding provision.

(4) Any reference, whether express or implied, in any enactment or document (including the repealed enactments and enactments passed and documents made)—

(a) to any provision of the repealed enactments, or

(b) to things done or to be done under or for the purposes of any provision of the repealed enactments,

shall, if and in so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision of this Chapter applies, a reference to, or as the case may be, to things done or deemed to be done or to be done under or for the purposes of, that corresponding provision.

(5) All officers who stood authorised or nominated for the purposes of any provision of the repealed enactments are deemed to be authorised or nominated, as the case may be for the purposes of the corresponding provision of this Chapter.

(6) All instruments, documents, authorisations and letters or notices of appointment made or issued under the repealed enactments and in force immediately before the commencement of this provision shall continue in force as if made or issued under this Chapter.

Commencement.

83. —This Chapter shall come into operation on 1 May 2002.