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3 2003

Finance Act 2003

PART 7

Miscellaneous

Interpretation (Part 7).

156. —In this Part “Principal Act” means the Taxes Consolidation Act 1997 .

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

157. —Chapter 4 of Part 42 of the Principal Act is amended—

(a) in section 989—

(i) in subsection (3)(d), by substituting “has been completed;” for “has been completed.”,

(ii) by inserting the following after subsection (3)(d):

“(e) where—

(i) the amount of tax estimated in the notice is remitted and a declaration referred to in paragraph (c) is not furnished, or

(ii) the Revenue Commissioners have reason to believe that the amount estimated in the notice is less than the amount which the person was liable to remit,

the Revenue Commissioners may amend the amount so estimated by increasing it and serve notice on the person concerned of the revised amount estimated and such notice shall supersede any previous notice issued under subsection (2).”,

and

(iii) by inserting “or subsection (3)(e)” after “subsection (2)” in subsection (4),

and

(b) in section 990, by inserting the following after subsection (1A)(c):

“(d) Where—

(i) the amount of tax estimated in a notice under subsection (1) is remitted and the return required by Regulation 31 of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001) is not submitted, or

(ii) the inspector or other officer has reason to believe that the amount estimated in the notice is less than the amount which the employer was liable to remit,

the inspector or other officer may amend the amount so estimated by increasing it and serve notice on the employer concerned of the revised amount estimated and such notice shall supersede any previous notice issued under subsection (1).”.

Amendment of section 899 (inspector's right to make enquiries) of Principal Act.

158. —Section 899 of the Principal Act is amended—

(a) in subsection (1) by substituting for “, sections 889 and 890, and sections 892 to 894” of “and sections 889 to 896”, and

(b) by deleting subsection (3).

Amendment of Chapter 4 (revenue powers) of Part 38 of Principal Act.

159. —Chapter 4 of Part 38 of the Principal Act is amended by inserting the following after section 904I:

“Power of inspection: tax deduction from payments in respect of professional services by certain persons.

904J.—(1) In this section—

‘accountable person’ has the same meaning as in section 521;

‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section;

‘books, records or other documents’ includes—

(a) any records used in the business of an accountable person whether—

(i) comprised in bound volume, loose-leaf binders or other loose-leaf filing system, loose-leaf ledger sheets, pages, folios or cards, or

(ii) kept on microfilm, magnetic tape or in any non-legible form (by the use of electronics or otherwise) which is capable of being reproduced in a legible form,

and

(b) every electronic or other automatic means, if any, by which any such thing in non-legible form is so capable of being reproduced, and

(c) documents in manuscript, documents which are typed, printed, stencilled or created by any other mechanical or partly mechanical process in use from time to time and documents which are produced by any photographic or photostatic process, and

(d) correspondence and records of other communications between an accountable person and a specified person;

‘specified person’ has the same meaning as in section 520.

(2) An authorised officer may at all reasonable times enter any premises or place of business of an accountable person for the purpose of auditing for a year of assessment returns made by the accountable person under section 525.

(3) Without prejudice to the generality of subsection (2), the authorised officer may—

(a) examine the procedures put in place by the accountable person for the purpose of ensuring compliance by the accountable person with that person's obligations under Chapter 1 of Part 18, and

(b) examine all or a sample of the returns made by the accountable person to determine whether the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate.

(4) An authorised officer may require an accountable person or an employee of the accountable person to produce books, records or other documents and to furnish information, explanations and particulars and to give all assistance, which the authorised officer reasonably requires for the purposes of his or her audit and examination under subsections (2) and (3).

(5) An authorised officer may make extracts from or copies of all or any part of the books, records or other documents or other material made available to him or her or require that copies of books, records, or other documents be made available to him or her, in exercising or performing his or her powers or duties under this section.

(6) An authorised officer when exercising or performing his or her powers or duties under this section shall, on request, produce his or her authorisation for the purposes of this section.

(7) An employee of an accountable person who fails to comply with the requirements of the authorised officer in the exercise or performance of the authorised officer's powers or duties under this section is liable to a penalty of €1,265.

(8) An accountable person who fails to comply with the requirements of the authorised officer in the exercise or performance of the authorised officer's powers or duties under this section is liable to a penalty of €19,045 and if that failure continues a further penalty of €2,535 for each day on which the failure continues.”.

Amendment of section 1078 (revenue offences) of Principal Act.

160. —(1) The Principal Act is amended in section 1078(3)(a) by substituting “€3,000” for “€1,900”.

(2) Subsection (1) applies as respects an offence committed on or after the day that this Act is passed.

Amendment of Chapter 4 (revenue offences) of Part 47 of Principal Act.

161. —The Principal Act is amended in Chapter 4 of Part 47 by inserting the following after section 1078:

“Concealing facts disclosed by documents.

1078A.—(1) Any person who—

(a) knows or suspects that an investigation by an officer of the Revenue Commissioners into an offence under the Acts or the Waiver of Certain Tax, Interest and Penalties Act 1993 is being, or is likely to be, carried out, and

(b) falsifies, conceals, destroys or otherwise disposes of material which the person knows or suspects is or would be relevant to the investigation or causes or permits its falsification, concealment, destruction or disposal,

is guilty of an offence.

(2) Where a person—

(a) falsifies, conceals, destroys or otherwise disposes of material, or

(b) causes or permits its falsification, concealment, destruction or disposal,

in such circumstances that it is reasonable to conclude that the person knew or suspected—

(i) that an investigation by an officer of the Revenue Commissioners into an offence under the Acts or the Waiver of Certain Tax, Interest and Penalties Act 1993 was being, or was likely to be, carried out, and

(ii) that the material was or would be relevant to the investigation,

the person shall be taken, for the purposes of this section, to have so known or suspected, unless the court or the jury, as the case may be, is satisfied having regard to all the evidence that there is a reasonable doubt as to whether the person so knew or suspected.

(3) A person guilty of an offence under this section is liable—

(a) on summary conviction to a fine not exceeding €3,000, or at the discretion of the court, to imprisonment for a term not exceeding 6 months or to both the fine and the imprisonment, or

(b) on conviction on indictment, to a fine not exceeding €127,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years or to both the fine and the imprisonment.

Presumptions.

1078B.—(1) In this section—

‘return, statement or declaration’ means any return, statement or declaration which a person is required to make under the Acts or the Waiver of Certain Tax, Interest and Penalties Act 1993 .

(2) The presumptions specified in this section apply in any proceedings, whether civil or criminal, under any provision of the Acts or the Waiver of Certain Tax, Interest and Penalties Act 1993 .

(3) Where a document purports to have been created by a person it shall be presumed, unless the contrary is shown, that the document was created by that person and that any statement contained therein, unless the document expressly attributes its making to some other person, was made by that person.

(4) Where a document purports to have been created by a person and addressed and sent to a second person, it shall be presumed, unless the contrary is shown, that the document was created and sent by the first person and received by the second person and that any statement contained therein—

(a) unless the document expressly attributes its making to some other person, was made by the first person, and

(b) came to the notice of the second person.

(5) Where a document is retrieved from an electronic storage and retrieval system, it shall be presumed unless the contrary is shown, that the author of the document is the person who ordinarily uses that electronic storage and retrieval system in the course of his or her business.

(6) Where an authorised officer in the exercise of his or her powers under subsection (2A) of section 905 has removed records (within the meaning of that section) from any place, gives evidence in proceedings that to the best of the authorised officer's knowledge and belief, the records are the property of any person, the records shall be presumed unless the contrary is proved, to be the property of that person.

(7) Where in accordance with subsection (6) records are presumed in proceedings to be the property of a person and the authorised officer gives evidence that, to the best of the authorised officer's knowledge and belief, the records are records which relate to any trade, profession, or, as the case may be, other activity, carried on by that person, the records shall be presumed unless the contrary is proved, to be records which relate to that trade, profession, or, as the case may be, other activity, carried on by that person.

(8) In proceedings, a certificate signed by an inspector or other officer of the Revenue Commissioners certifying that a return, statement or declaration to which the certificate refers is in the possession of the Revenue Commissioners in such circumstances as to lead the officer to conclude that, to the best of his or her knowledge and belief it was delivered to an inspector or other officer of the Revenue Commissioners, it shall be presumed unless the contrary is proved, to be evidence that the said return, statement, or declaration was so delivered.

(9) In proceedings, a certificate, certifying the fact or facts referred to in subsection (8) and purporting to be signed as specified in that subsection, may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by a person holding, at the time of the signature, the office or position indicated in the certificate as the office or position of the person signing.

(10) References in this section to a document are references to a document in written, mechanical or electronic format and, for this purpose ‘written’ includes any form of notation or code whether by hand or otherwise and regardless of the method by which, or the medium in or on which, the document concerned is recorded.

Provision of information to juries.

1078C.—(1) In a trial on indictment of an offence under the Acts or the Waiver of Certain Tax, Interest and Penalties Act 1993 , the trial judge may order that copies of any or all of the following documents shall be given to the jury in any form that the judge considers appropriate:

(a) any document admitted in evidence at the trial,

(b) the transcript of the opening speeches of counsel,

(c) any charts, diagrams, graphics, schedules or agreed summaries of evidence produced at the trial,

(d) the transcript of the whole or any part of the evidence given at the trial,

(e) the transcript of the closing speeches of counsel,

(f) the transcript of the trial judge's charge to the jury,

(g) any other document that in the opinion of the trial judge would be of assistance to the jury in its deliberations including, where appropriate, an affidavit by an accountant or other suitably qualified person, summarising, in a form which is likely to be comprehended by the jury, any transactions by the accused or other persons which are relevant to the offence.

(2) If the prosecutor proposes to apply to the trial judge for an order that a document mentioned in subsection (1) (g) shall be given to the jury, the prosecutor shall give a copy of the document to the accused in advance of the trial and, on the hearing of the application, the trial judge shall take into account any representations made by or on behalf of the accused in relation to it.

(3) Where the trial judge has made an order that an affidavit by an accountant or other person mentioned in subsection (1) (g) shall be given to the jury, the accountant, or as the case may be, the other person so mentioned—

(a) shall be summoned by the prosecution to attend at the trial as an expert witness, and

(b) may be required by the trial judge, in an appropriate case, to give evidence in regard to any relevant procedures or principles within his or her area of expertise.”.

Amendment of section 1061 (recovery of penalties) of Principal Act.

162. —(1) Section 1061 of the Principal Act is amended—

(a) in subsection (1), by substituting “for the recovery of the penalty in any court of competent jurisdiction as a liquidated sum, and, where appropriate, section 94 of the Courts of Justice Act 1924 shall apply accordingly.” for “for the recovery of the penalty in the High Court as a liquidated sum, and section 94 of the Courts of Justice Act 1924 , shall apply accordingly.”, and

(b) in subsection (6), by substituting “the rules of court” for “the rules of the High Court.”.

(2) Subsection (1) applies as respects civil proceedings commenced on or after the passing of this Act.

Miscellaneous technical amendments in relation to tax.

163. —The enactments specified in Schedule 6 are amended to the extent and in the manner specified in that Schedule.

Mandatory electronic filing and payment of tax.

164. —(1) The Principal Act is amended—

(a) in Chapter 6 of Part 38 by inserting the following after section 917E—

Mandatory electronic filing and payment of tax.

917EA.—(1) In this section—

‘electronic means’ includes electrical, digital, magnetic, optical, electromagnetic, biometric, photonic means of transmission of data and other forms of related technology by means of which data is transmitted;

‘repayment of tax’ includes any amount relating to tax which is to be paid or repaid by the Revenue Commissioners;

‘specified person’ means any person, group of persons or class of persons specified in regulations made under this section for the purposes of either or both paragraphs (a) and (b) of subsection (3);

‘specified return’ means a return specified in regulations made under this section;

‘specified tax liabilities’ means liabilities to tax including interest on unpaid tax specified in regulations made under this section.

(2) Section 917D shall apply for the purposes of regulations made under this section in the same way as it applies for the purposes of this Chapter.

(3) The Revenue Commissioners may make regulations—

(a) requiring the delivery by specified persons of a specified return by electronic means where an order under section 917E has been made in respect of that return,

(b) requiring the payment by electronic means of specified tax liabilities by specified persons, and

(c) for the repayment of any tax specified in the regulations to be made by electronic means.

(4) Regulations made under this section shall include provision for the exclusion of a person from the requirements of regulations made under this section where the Revenue Commissioners are satisfied that the person could not reasonably be expected to have the capacity to make a specified return or to pay the specified tax liabilities by electronic means, and allowing a person, aggrieved by a failure to exclude such person, to appeal that failure to the Appeal Commissioners.

(5) Regulations made under this section may, in particular and without prejudice to the generality of subsection (3), include provision for—

(a) the electronic means to be used to pay or repay tax,

(b) the conditions to be complied with in relation to the electronic payment or repayment of tax,

(c) determining the time when tax paid or repaid using electronic means is to be taken as having been paid or repaid,

(d) the manner of proving, for any purpose, the time of payment or repayment of any tax paid or repaid using electronic means, including provision for the application of any conclusive or other presumptions,

(e) notifying persons that they are specified persons, including the manner by which such notification may be made, and

(f) such supplemental and incidental matters as appear to the Revenue Commissioners to be necessary.

(6) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by regulation made under this section to be performed or discharged by the Revenue Commissioners.

(7) Where a specified person—

(a) makes a return which is a specified return for the purposes of regulations made under this section, or

(b) makes a payment of tax which is specified tax liabilities for the purposes of regulations made under this section,

in a form other than that required by any such regulation, the specified person shall be liable to a penalty of €1,520 and, for the purposes of the recovery of a penalty under this subsection, section 1061 applies in the same manner as it applies for the purposes of the recovery of a penalty under any of the sections referred to in that section.

(8) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly but without prejudice to the validity of anything previously done under the regulation.”,

(b) in section 1084(1)(b) by inserting the following after subparagraph (i):

“(ia) where a person who is a specified person in relation to the delivery of a specified return for the purposes of any regulations made under section 917EA delivers a return of income on or before the specified return date for the chargeable period but does so in a form other than that required by any such regulations the person shall be deemed to have delivered an incorrect return on or before the specified return date for the chargeable period and subparagraph (ii) shall apply accordingly,”,

and

(c) in section 1085(1)(b) by inserting “(ia),” after “(i),”.

(2) This section has effect from such day as the Minister for Finance may appoint by order.

Cesser of certain payments out of Central Fund.

165. —Such sums are payable out of the Central Fund or the growing produce of that Fund—

(a) to the Under Library Keeper of Marsh's Library at St. Patrick's Dublin, under the Irish Charges Act 1801,

(b) to the Lord Mayor and citizens of Dublin, under the Irish Charges Act 1801, and

(c) to the Benchers of the Honorable Society of King's Inns, Dublin, under the King's Inns Library Act 1945 ,

shall cease to be paid in respect of the financial year 2004 and subsequent financial years and, accordingly, those Acts shall cease to have effect in so far as they relate to the matters set out in this section.

Payments from Central Fund to certain persons.

166. —(1) In this section—

“Accounting Officer” means the Accounting Officer of the Office of the Revenue Commissioners;

“CPI number” means the All Items Consumer Price Index Number compiled by the Central Statistics Office;

“relevant period” means the period commencing on the first day of the year of assessment next following the year of assessment in which the tax repaid was paid and concluding on the date of the issue of the repayment of the tax;

“specified judgement” means the decision of the High Court in the case of O'Coindealbhain (Inspector of Taxes) v Breda O'Carroll reported in the Irish Tax Reports, Volume IV, at page 221;

“specified payment”, in relation to a repayment of tax made for a year of assessment, means a payment made in respect of the loss of purchasing power in respect of that repayment for the relevant period.

(2) In this section the CPI number applicable to the commencement of a relevant period shall be the CPI number relating to the immediately preceding survey date, and the CPI number applicable to the conclusion of the relevant period shall be the CPI number relating to the immediately succeeding survey date.

(3) This section shall apply for the purpose of permitting the Revenue Commissioners to make a specified payment in respect of the repayment of tax in a particular case to which subsection (4) applies where, at the discretion of the Accounting Officer, that Officer considers it appropriate that such payment should be made and approves the making of that payment.

(4) Subject to the approval of the Accounting Officer as mentioned in subsection (3), a specified payment may be made by the Revenue Commissioners in respect of a repayment of income tax made by reference to the specified judgement.

(5) Where a specified payment is made under this section—

(a) the amount of the specified payment shall be computed solely by reference to the amount of the repayment concerned and to the movement in the CPI number for the relevant period,

(b) it shall be made without deduction of income tax, and

(c) it shall not be reckoned in computing total income for the purposes of the Income Tax Acts.

(6) Where a specified payment is made by the Revenue Commissioners in accordance with this section—

(a) it shall be paid out of the Central Fund or the growing produce thereof, and

(b) the aggregate of all such payments made by virtue of this section shall not exceed €7,000,000.

Amendment of section 136 (write-off of certain repayable advances to Shannon Free Airport Development Company Limited) of Finance Act 2002.

167. Section 136 of the Finance Act 2002 is amended in subsection (2) by substituting “an amount of up to €11,409,916.13” for “amounting to the sum of €11,409,916.13”.

Amendment of section 160 (establishment of Small Savings Reserve Fund) of Finance Act 1994.

168. Section 160 of the Finance Act 1994 is amended—

(a) in subsection (1), by substituting “instalment savings schemes” for “national instalment savings”, and

(b) by inserting the following after subsection (4):

“(4A) The Minister may, from time to time, pay out of the Fund into the Central Fund an amount equivalent, in whole or in part, to so much of any amount transferred to the Dormant Accounts Fund under paragraph (b) of section 12(3) of the Dormant Accounts Act 2001 as represents accrued interest on savings bonds, savings certificates and instalment savings schemes referred to in subparagraph (i) of that paragraph.”.

Capital Services Redemption Account.

169. —(1) In this section—

“capital services” has the same meaning as it has in the principal section;

“fifty-first additional annuity” means the sum charged on the Central Fund under subsection (2);

“principal section” means section 22 of the Finance Act 1950 .

(2) A sum of €29,663,454 to redeem borrowings, and interest on such sum, in respect of capital services shall be charged annually on the Central Fund or the growing produce of that Fund in the thirty successive financial years commencing with the financial year ending on 31 December 2003.

(3) The fifty-first additional annuity shall be paid into the Capital Services Redemption Account in such manner and at such times in the relevant financial year as the Minister for Finance may determine.

(4) Any amount of the fifty-first additional annuity, not exceeding €22,799,999 in any financial year, may be applied towards defraying the interest on the public debt.

(5) The balance of the fifty-first additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

Care and management of taxes and duties.

170. —All taxes and duties imposed by this Act are placed under the care and management of the Revenue Commissioners.

Short title, construction and commencement.

171. —(1) This Act may be cited as the Finance Act 2003 .

(2) Part 1 shall be construed together with—

(a) in so far as it relates to income tax, the Income Tax Acts,

(b) in so far as it relates to corporation tax, the Corporation Tax Acts, and

(c) in so far as it relates to capital gains tax, the Capital Gains Tax Acts.

(3) Part 2, in so far as it relates to duties of excise, shall be construed together with the statutes which relate to those duties and to the management of those duties.

(4) Part 3 shall be construed together with the Value-Added Tax Acts 1972 to 2002 and may be cited together with those Acts as the Value-Added Tax Acts 1972 to 2003.

(5) Part 4 shall be construed together with the Stamp Duties Consolidation Act 1999 and the enactments amending or extending that Act.

(6) Part 5 shall be construed together with the Capital Acquisitions Tax Consolidation Act 2003 and the enactments amending or extending that Act.

(7) Part 6, in so far as it relates to residential property tax, shall be construed together with Part VI of the Finance Act 1983 and the enactments amending or extending that Part.

(8) Part 7 shall be construed together with—

(a) in so far as it relates to income tax, the Income Tax Acts,

(b) in so far as it relates to corporation tax, the Corporation Tax Acts,

(c) in so far as it relates to capital gains tax, the Capital Gains Tax Acts,

(d) in so far as it relates to value-added tax, the Value-Added Tax Acts 1972 to 2003,

(e) in so far as it relates to residential property tax, Part VI of the Finance Act 1983 and the enactments amending or extending that Part, and

(f) in so far as it relates to gift tax or inheritance tax, the Capital Acquisitions Tax Act 1976 and the enactments amending or extending that Act.

(9) Except where otherwise expressly provided in Part 1, that Part applies as on and from 1 January 2003.

(10) In relation to Part 3:

(a) section 119 shall be taken to have come into force and shall take effect as on and from 1 January 2003;

(b) section 120 comes into force and takes effect as on and from 1 May 2003;

(c) sections 113, 115, 116, 123, paragraph (a) of section 130 , and section 131 come into force and take effect as on and from 1 July 2003;

(d) section 122 comes into force and takes effect as on and from 1 January 2004;

(e) sections 124, 125, 129 and paragraph (b) of section 130 shall take effect as on and from such day or days as the Minister for Finance may, by order or orders, appoint;

(f) the provisions of this Part, other than those specified in paragraphs (a) to (e), have effect as on and from the date of passing of this Act.

(11) Any reference in this Act to any other enactment shall, except in so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment including this Act.

(12) In this Act, a reference to a Part, section or Schedule is to a Part or section of, or Schedule to, this Act, unless it is indicated that reference to some other enactment is intended.

(13) In this Act, a reference to a subsection, paragraph, subparagraph, clause or subclause is to the subsection, paragraph, subparagraph, clause or subclause of the provision (including a Schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.