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15 1983

FINANCE ACT, 1983

PART III

Value-Added Tax

Interpretation ( Part III ).

77. —In this Part—

the Principal Act” means the Value-Added Tax Act, 1972 ;

the Act of 1976” means the Finance Act, 1976 ;

the Act of 1978” means the Value-Added Tax (Amendment) Act, 1978 ;

the Act of 1981” means the Finance (No. 2) Act, 1981 ;

the Act of 1982” means the Finance Act, 1982 .

Amendment of section 3 (delivery of goods) of Principal Act.

78. —Section 3 of the Principal Act is hereby amended by the insertion after subsection (6) of the following subsection:

“(7) (i) Where, in the case of a business carried on, or that has ceased to be carried on, by a taxable person, goods forming part of the assets of the business are, under any power exercisable by another person, including a liquidator and a receiver, disposed of by the other person in or towards the satisfaction of a debt owed by the taxable person, or in the course of the winding-up of a company, they shall be deemed to be supplied by the taxable person in the course or furtherance of his business.

(ii) A disposal of goods under this subsection shall include any disposal which is deemed to be a supply of immovable goods under section 4(2).”.

Amendment of section 8 (accountable persons) of Principal Act.

79. —Section 8 of the Principal Act is hereby amended—

(a) in subsection (3) (inserted by the Act of 1978)—

(i) in paragraph (b) (inserted by the Act of 1982), by the substitution of “£12,000” for “£15,000”,

(ii) in paragraph (c) (inserted by the Act of 1981), by the substitution of “£25,000” for “£30,000”, and

(iii) in paragraph (e) (inserted by the Act of 1981), by the substitution of “£12,000” for “£15,000”,

(b) in subsection (3A) (inserted by the Act of 1982), by the substitution of “£12,000” for “£15,000”, and

(c) in subsection (9), in the definition of “farmer” (inserted by the Act of 1982), by the substitution of “£12,000” for “£15,000” in each place where it occurs.

Amendment of section 9 (registration) of Principal Act.

80. —Section 9 of the Principal Act is hereby amended—

(a) in subsection (1), by the insertion after “taxable persons” of “or who are persons who dispose of goods which pursuant to section 3 (7) are deemed to be supplied by a taxable person in the course or furtherance of his business”, and

(b) by the insertion after subsection (2) of the following subsection:

“(2A) Every person who disposes of goods which pursuant to section 3 (7) are deemed to be supplied by a taxable person in the course or furtherance of his business shall, within fourteen days of such disposal, furnish in writing to the Revenue Commissioners the particulars specified in regulations as being required for the purpose of registering such person for tax.”.

Amendment of section 11 (rates of tax) of Principal Act.

81. —(1) Section 11 of the Principal Act is hereby amended—

(a) in subsection (1)—

(i) in paragraph (a) (inserted by the Act of 1978), by the substitution of “23 per cent.” for “18 per cent.” (inserted by the Act of 1982), and

(ii) in paragraph (c) (inserted by the Finance Act, 1980 ), by the substitution of “35 per cent.” for “30 per cent.” (inserted by the Act of 1982),

and

(b) in subsection (2)—

(i) in paragraph (a) (inserted by the Act of 1978), as respects supplies on or after the 1st day of July, 1983, by the substitution of “8.69 per cent.” for “10 per cent.”,

(ii) in paragraph (b) (inserted by the Act of 1978), by the substitution of “21.74 per cent.” for “16.67 per cent.” (inserted by the Act of 1982),

(iii) in paragraph (c) (inserted by the Act of 1981), by the substitution of “21.74 per cent.” for “16.67 per cent.” (inserted by the Act of 1982),

(iv) in paragraph (d) (inserted by the Act of 1982), by the substitution of “21.74 per cent.” for “16.67 per cent.”, and

(v) in paragraph (e) (inserted by the Act of 1982), by the substitution of “21.74 per cent.” for “16.67 per cent.”.

(2) Section 11 of the Principal Act is hereby further amended—

(a) in subsection (1)—

(i) by the insertion of the following paragraph after paragraph (a):

“(aa) 5 per cent. of the amount on which tax is chargeable in relation to the supply of goods or services of a kind specified in the Sixth Schedule,”,

and

(ii) in paragraph (c), by the substitution of “any of the rates specified in paragraphs (a), (aa) and (b)” for “either of the rates specified in paragraphs (a) and (b)”,

(b) in subsection (2), by the deletion of paragraphs (b), (c), (d) and (e),

(c) in subsection (7) (inserted by the Act of 1976), by the insertion in paragraph (e) (i) after “subsection (1) (a)” of “, subsection (1) (aa)”, and

(d) in subsection (8), by the substitution in paragraph (a) (inserted by the Finance Act, 1973 ) of “Second, Third or Sixth Schedule” for “Second or Third Schedules”.

Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

82. —Section 12A (inserted by the Act of 1978) of the Principal Act is hereby amended—

(a) as respects supplies on or after the 1st day of March, 1983, by the substitution in subsection (1) of “2.3 per cent.” for “1.8 per cent.” (inserted by the Act of 1982), and

(b) as respects supplies on or after the 1st day of July, 1983, by the substitution in the said subsection (1) of “2 per cent.” for “2.3 per cent.” (inserted by paragraph (a)).

Amendment of section 15 (charge of tax on imported goods) of Principal Act.

83. —Section 15 of the Principal Act is hereby amended—

(a) in subsection (1), by the insertion after paragraph (a) of the following paragraph:

“(aa) on goods of a kind specified in the Sixth Schedule at the percentage specified in section 11 (1) (aa) of the value of the goods, and”,

and

(b) in subsection (4), as respects importations on or after the 1st day of July, 1983, by the substitution of “8.69 per cent.” for “10 per cent.”.

Amendment of section 19 (tax due and payable) of Principal Act.

84. —Section 19 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (3):

“(3) (a) Subject to paragraph (b), a taxable person shall, within 9 days immediately after the tenth day of the month immediately following a taxable period, furnish to the Collector-General a true and correct return prepared in accordance with regulations of the amount of tax which became due by him during the taxable period, not being tax already paid by him in relation to goods imported by him, and the amount, if any, which may be deducted in accordance with section 12 in computing the amount of tax payable by him in respect of such taxable period and such other particulars as may be specified in regulations, and shall at the same time remit to the Collector-General the amount of tax, if any, payable by him in respect of such taxable period.

(b) A person who disposes of goods which pursuant to section 3 (7) are deemed to be supplied by a taxable person in the course or furtherance of his business—

(i) shall within 9 days immediately after the tenth day of the month immediately following a taxable period furnish to the Collector-General a true and correct return, prepared in accordance with regulations, of the amount of tax which became due by such taxable person in relation to the disposal, and such other particulars as may be specified in regulations, and shall at the same time remit to the Collector-General the amount of tax payable in respect of the taxable period in question,

(ii) shall send to the person whose goods were disposed of a statement containing such particulars as may be specified in regulations, and

(iii) shall treat the said amount of tax as a necessary disbursement out of the proceeds of the disposal.

(c) The owner of goods which pursuant to section 3 (7) are deemed to be supplied by a taxable person in the course or furtherance of his business shall exclude from any return, which he is or, but for this subparagraph, would be, required to furnish under this Act, the tax payable in accordance with paragraph (b).”.

Amendment of section 25 (appeals) of Principal Act.

85. —Section 25 (2) of the Principal Act is hereby amended—

(a) by the substitution of the following paragraphs for paragraph (f):

“(f) the determination of an appeal through the failure of a person who has given notice of appeal to attend before the Appeal Commissioners at the time and place appointed;

(ff) the refusal of an application for the adjournment of any proceedings in relation to an appeal, and the dismissing of an appeal, by the Appeal Commissioners;”,

and

(b) by the substitution of “shall, subject to the modifications set out hereunder and to other necessary modifications, apply to a claim under section 22 or an appeal under section 11 (1B) or 23 or this section as if the claim or appeal were an appeal against an assessment to income tax:

(i) a reference to a year of assessment shall include a reference to the taxable periods concerned,

(ii) a reference to a return of income shall include a reference to a return required to be made under section 19,

(iii) a reference to interest shall include a reference to interest payable under section 21”

for the words from paragraph (k) to the end of the section.

Amendment of Second Schedule to Principal Act.

86. —The Second Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended by the substitution of the following paragraph for paragraph (xx):

“(xx) (a) electricity,

(b) wax candles and night-lights which are white and cylindrical, excluding candles and night-lights which are decorated, spiralled, tapered or perfumed.”.

Amendment of Third Schedule to Principal Act.

87. —The Third Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended—

(a) in Part I—

(i) in paragraph (ix), by the deletion of “, atlases”,

(ii) by the deletion of paragraph (xii), and

(iii) by the insertion in paragraphs (xxiii) and (xxiv) after “Schedule” of “or paragraph (i) of the Sixth Schedule”, and

(b) in Part II, by the substitution of the following paragraph for paragraph (i):

“(i) Services other than—

(a) the hiring or letting of goods,

(b) services of a kind specified in the Sixth Schedule;”.

Insertion of Sixth Schedule in Principal Act.

88. —The Principal Act is hereby amended by the insertion after the Fifth Schedule of the following Schedule:

“SIXTH SCHEDULE

Goods and Services Chargeable at the Rate Specified in Section 11 (1) (aa)

(i) (a) Coal, peat and other solid substances, held out for sale solely as fuel,

(b) gas of a kind used for domestic or industrial heating or lighting, whether in gaseous or liquid form, but not including gas of a kind normally used for welding and cutting metals or gas sold as lighter fuel,

(c) hydrocarbon oil of a kind used for domestic or industrial heating, excluding gas oil (within the meaning of the Hydrocarbon Oil (Rebated Oil) Regulations, 1961 (S.I. No. 122 of 1961)), other than gas oil which has been duly marked in accordance with Regulation 6 (2) of the said Regulations;

(ii) immovable goods;

(iii) services consisting of the development of immovable goods, and the maintenance and repair of immovable goods including the installation of fixtures, where the value of movable goods (if any) provided in pursuance of an agreement in relation to such services does not exceed two-thirds of the total amount on which tax is chargeable in respect of the agreement;

(iv) services, supplied on or after the 1st day of July, 1983, consisting of the repair or maintenance of mechanically propelled land vehicles including self-propelled mobile machinery (other than vehicles and machinery designed, constructed or intended for use on rails) and goods specified in paragraph (v), insofar as it applies to farmers, and paragraph (xx), of Part I of the Third Schedule, including the provision and installation in the course of supplying such services of goods of a kind normally included as parts of such vehicles when supplied new, but excluding—

(a) the provision in the course of a repair or maintenance service of accessories, attachments, goods specified in paragraph (xxv) of the said Part I and batteries,

(b) the repair and maintenance, whether performed separately or in the course of the repair or maintenance of other goods, of articles which are accessories or attachments or goods specified in the said paragraph (xxv), other than such articles that are of a kind specified in the said paragraph (v), insofar as it applies to farmers, and the said paragraph (xx), and

(c) washing, cleaning and polishing;

(v) agricultural services consisting of—

(a) field work, reaping, mowing, threshing, baling, harvesting, sowing and planting,

(b) disinfecting and ensilage of agricultural products,

(c) destruction of weeds and pests and dusting and spraying of crops and land,

(d) lopping, tree felling and similar forestry services, and

(e) land drainage and reclamation;

(vi) services of an auctioneer, solicitor, estate agent or other agent, directly related to the supply of immovable goods used for the purposes of an Annex A activity;

(vii) farm accountancy or farm management services.”.

Relief for hotels etc.

89. —(1) (a) In this section “qualifying service” means a service consisting of the supply, for the benefit of persons not resident in the State, under an agreement made before the 1st day of January, 1983, of sleeping accommodation, with or without board, or of motor cars upon hire, boats upon hire or entertainment, at charges fixed at the time of the making of the agreement, to persons carrying on the business of travel agent, tour operator or the hiring out of motor cars or boats.

(b) In respect of the taxable periods commencing on the 1st day of March, 1983, the 1st day of May, 1983, the 1st day of July, 1983, the 1st day of September, 1983 and the 1st day of November, 1983, notwithstanding the provisions of section 11 of the Principal Act (as amended by this Act), tax shall, in relation to the supply of a qualifying service, be, and be deemed to have been, chargeable at the rate of 18 per cent.

(2) Notwithstanding the provisions of section 11 of the Principal Act (as amended by this Act), the rate of tax chargeable in relation to the letting of immovable goods specified in paragraph (iv) (b) of the First Schedule to the Principal Act shall be 18 per cent.