|
|||||
|
First | Previous (PART 3 Value-Added Tax) | Next (PART 5 Capital Acquisitions Tax) |
Finance Act 2003
PART 4 Stamp Duties | ||||||
Interpretation (Part 4). |
132. —In this Part— | |||||
“Commissioners” means the Revenue Commissioners; | ||||||
“Principal Act” means the Stamp Duties Consolidation Act 1999 . | ||||||
Amendment of section 1 (interpretation) of Principal Act. |
133. —(1) Section 1 of the Principal Act is amended in subsection (1) by substituting the following for paragraph (I) of the definition of “residential property”— | |||||
“(I) in the year ending on 31 December immediately prior to the date of that instrument of conveyance or lease a rating authority— | ||||||
(A) has made a rate or has not made a rate in respect of any particular property falling within Schedule 3 to the Valuation Act 2001 , or | ||||||
(B) has not made a rate in respect of any particular property falling within Schedule 4 to the Valuation Act 2001 , | ||||||
then the whole or an appropriate part of that property as is referable to ordinary use other than as a dwelling at the date of that instrument of conveyance or lease or, where appropriate, when last ordinarily used, shall not be residential property, in relation to that sale or lease, or”. | ||||||
(2) This section has effect in relation to instruments executed on or after the passing of this Act. | ||||||
Amendment of section 36 (certain contracts for sale of leasehold interests to be chargeable as conveyances on sale) of Principal Act. |
134. —(1) Section 36 of the Principal Act is amended by inserting the following subsection after subsection (2): | |||||
“(3) Where on or after 1 March 2003 a charge arises under subsection (2) in respect of a contract or agreement for sale executed prior to 4 December 2002, the ad valorem stamp duty payable on that contract or agreement for sale shall be calculated by reference to the rates of ad valorem stamp duty in force on the date that the charge arises.”. | ||||||
(2) Subsection (1) applies and has effect in relation to contracts or agreements for sale executed prior to 4 December 2002 in respect of charges arising on or after 1 March 2003. | ||||||
Amendment of section 69 (operator-instruction deemed to be an instrument of conveyance or transfer) of Principal Act. |
135. —(1) Section 69 of the Principal Act is amended by inserting the following after subsection (3): | |||||
“(4) Where a transfer of title to securities through a relevant system is effected by an operator-instruction relating to a single netted settlement in a relevant system of two or more contracts for sale of the same type of securities of a company that operator-instruction shall not be treated as an operator-instruction falling within subsection (1) and shall, instead, be deemed to be a separate operator-instruction generated in respect of each contract for sale included in that single netted settlement and each such operator-instruction shall be deemed to be an executed instrument of conveyance or transfer of the securities which are the subject of the contract for sale concerned and the date of execution of each such conveyance or transfer shall be taken to be the date the operator-instruction relating to the single netted settlement is generated. | ||||||
(5) Where no operator-instruction is generated in connection with a single netted settlement in a relevant system of two or more contracts for sale of the same type of securities of a company, a separate operator-instruction shall be deemed to have been generated on the date of the single netted settlement in respect of each contract for sale included in that single netted settlement and each such operator-instruction shall be deemed to be an executed instrument of conveyance or transfer of the securities which are the subject of the contract for sale concerned and the date of execution of each such conveyance or transfer shall be taken to be the date the deemed operator-instruction is generated.”. | ||||||
(2) Subsection (1) has effect in relation to instruments executed on or after the passing of this Act. | ||||||
Amendment of section 79 (conveyances and transfers of property between certain bodies corporate) of Principal Act. |
136. —(1) Section 79 of the Principal Act is amended— | |||||
(a) in subsection (3)— | ||||||
(i) by substituting “ordinary share capital” for “issued share capital” in the first 2 places where it occurs, and | ||||||
(ii) by substituting the following for paragraphs (a), (b) and (c): | ||||||
“(a) references to company were references to body corporate, and | ||||||
(b) references to companies were references to bodies corporate.”, | ||||||
(b) by inserting the following after subsection (3): | ||||||
“(3A) For the purposes of subsection (3) ‘ordinary share capital’, in relation to a body corporate, means all the issued share capital (by whatever name called) of the body corporate, other than capital the holders of which have a right to a dividend at a fixed rate, but have no other right to share in the profits of the body corporate.”, | ||||||
and | ||||||
(c) by inserting the following after subsection (8): | ||||||
“(9) This section shall apply notwithstanding that a body corporate, referred to in this section, is incorporated outside the State, and such body corporate, corresponds, under the law of the place where it is incorporated, to a body corporate which has an ordinary share capital within the meaning given in subsection (3A) and subject to any necessary modifications for the purpose of so corresponding, all the other provisions of this section are met.”. | ||||||
(2) Subsection (1) applies and has effect in relation to instruments executed on or after 6 February 2003. | ||||||
Amendment of section 81 (relief from stamp duty in respect of transfers to young trained farmers) of Principal Act. |
137. —(1) Section 81 of the Principal Act is amended in subsection (9), by substituting “31 December 2005” for “31 December 2002”. | |||||
(2) Subsection (1) applies and has effect in relation to instruments executed on or after 1 January 2003. | ||||||
Foreign Government securities. |
138. —(1) The Principal Act is amended by the substitution of the following section for section 89: | |||||
“89.—(1) In this section— | ||||||
‘foreign local authority’ means an authority, corresponding in substance to a local authority for the purposes of the Local Government Act 2001 , which is established outside the State and whose functions are carried on primarily outside the State; | ||||||
‘foreign local government’ means any local or regional government in any jurisdiction outside the State. | ||||||
(2) Stamp duty shall not be chargeable on any conveyance or transfer of stocks or other securities of the government of any territory outside the State, of a foreign local government or of a foreign local authority.”. | ||||||
(2) This section has effect in relation to instruments executed on or after 6 February 2003. | ||||||
Exemption of National Development Finance Agency, etc. from stamp duty. |
139. —(1) The Principal Act is amended by the insertion of the following section after section 108— | |||||
| ||||||
(2) This section has effect in relation to instruments executed on or after 1 January 2003. | ||||||
Amendment of Part 9 (levies) of Principal Act. |
140. —(1) Part 9 of the Principal Act is amended— | |||||
(a) in section 123— | ||||||
(i) in subsection (1)— | ||||||
(I) by substituting the following for the definition of bank: | ||||||
“ ‘bank’ means a person who holds a licence granted by the Central Bank of Ireland under section 9 of the Central Bank Act 1971 ;”, | ||||||
(II) by substituting the following for the definitions of card account and cash card: | ||||||
“ ‘card account’ means an account maintained by a promoter to which amounts of cash obtained by a person by means of a cash card are charged or to which amounts in respect of goods, services or cash obtained by a person by means of a combined card are charged; | ||||||
‘cash card’ means a card, not being a combined card, issued by a promoter to a person having an address in the State by means of which cash may be obtained by the person from an automated teller machine;”, | ||||||
and | ||||||
(III) by inserting the following definition after the definition of cash card: | ||||||
“ ‘combined card’ means a cash card which also contains the functions of a debit card within the meaning assigned to it by section 123A;”, | ||||||
(ii) in subsections (2) and (11)(c) by substituting “cash cards and combined cards” for “cash cards”, | ||||||
(iii) in paragraphs (a) and (b) of subsection (3) and in subsection (9) by substituting “cash card or combined card” for “cash card”, | ||||||
(iv) in subsection (3) by substituting the following for paragraph (c): | ||||||
“(c) if the cash card is a replacement for a cash card, or a combined card is a replacement for a combined card, which is already included in the relevant statement,”, | ||||||
and | ||||||
(v) by substituting the following for subsection (4): | ||||||
“(4) There shall be charged on every statement delivered in pursuance of subsection (2) a stamp duty at the rate of €10 in respect of each cash card and €20 in respect of each combined card included in the number of cash cards and combined cards shown in the statement.”, | ||||||
(b) by inserting the following section after section 123: | ||||||
| ||||||
and | ||||||
(c) in section 124— | ||||||
(i) in subsection (1)(b), by substituting “maintained by the bank at any time during the 12 month period or any shorter period, as may be appropriate, ending on that 1st day of April” for “maintained by the bank on that 1st day of April”, | ||||||
(ii) in subsection (1)(c), by substituting “€40” for “€19”, | ||||||
(iii) in subsection (2)— | ||||||
(I) (A) in paragraph (c), by substituting “€20” for “€9.50”, and | ||||||
(B) in subparagraph (ii) of paragraph (d), by substituting “€40” for “€19”, and | ||||||
(II) (A) in paragraph (a), by deleting the definition of “quarter”, and | ||||||
(B) by substituting the following for paragraphs (b), (c) and (d): | ||||||
“(b) A promoter shall, in each year, within 3 months of the 1st day of April in that year, deliver to the Commissioners a statement in writing showing the number of charge cards, company charge cards and supplementary cards issued or renewed by the promoter and expressed to be valid at any time during the 12 month period or any shorter period, as may be appropriate, ending on the 1st day of April in that year. | ||||||
(c) There shall be charged on every statement delivered in accordance with paragraph (b) a stamp duty at the rate of €40 in respect of each charge card, company charge card and supplementary card included in the number of cards shown in the statement.”, | ||||||
and | ||||||
(iv) in subparagraph (ii) of subsection (5)(a), by substituting “the 1st day of April in the year in which” for “the end of the quarter within 2 months of which”. | ||||||
(2) (a) Paragraph (a) of subsection (1) has effect as respects cash cards and combined cards valid at any time after 4 December 2002 which are included in any statement which falls to be delivered by a promoter under section 123 of the Principal Act after that date. | ||||||
(b) Paragraph (b) of subsection (1) has effect as respects any statement which falls to be delivered by a promoter under section 123A of the Principal Act on or after 5 December 2002. | ||||||
(c) Subparagraph (i) of subsection (1)(c) has effect as respects any statement which falls to be delivered by a bank under section 124 of the Principal Act in respect of a due date falling after 1 April 2003. | ||||||
(d) Subparagraph (ii) of subsection (1)(c) has effect as respects any statement which falls to be delivered by a bank under section 124 of the Principal Act on or after 5 December 2002. | ||||||
(e) Clause (I) of subsection (1)(c)(iii) has effect as respects any statement which falls to be delivered by a promoter under section 124 of the Principal Act on or after 5 December 2002. | ||||||
(f) Clause (II) of subsection (1)(c)(iii) has effect as respects any statement which falls to be delivered by a promoter under section 124 of the Principal Act in respect of a due date falling after 1 April 2003. | ||||||
(g) Subparagraph (iv) of subsection (1)(c) has effect as respects any statement which falls to be delivered by a promoter under section 124 of the Principal Act in respect of a due date falling after 1 April 2003. | ||||||
Levy on certain financial institutions. |
141. —The Principal Act is amended by inserting the following after section 126: | |||||
“126A.—(1) (a) In this section— | ||||||
‘appropriate tax’ has the meaning assigned to it by section 256 of the Taxes Consolidation Act 1997 ; | ||||||
‘assessable amount’, in relation to a relevant person, means the relevant retention tax in relation to the person; | ||||||
‘average relevant deposits’, in relation to a company, means an amount specified in a notice given by the Central Bank to a company for the purposes of this section, being an amount equal to the average of the endmonth amounts of non-Government deposits of Irish residents for each of the calendar months in the year 2001; | ||||||
‘company’ has the same meaning as in section 4 of the Taxes Consolidation Act 1997 ; | ||||||
‘non-Government deposits of Irish residents’, in relation to a company, means the amount specified as non-Government deposits of Irish residents in a return made by the company before 4 December 2002 to the Central Bank of Ireland in accordance with section 18 of the Central Bank Act 1971 (as amended by section 37 of the Central Bank Act 1989 and section 8 of the Central Bank Act 1998 ); | ||||||
‘due date’ means— | ||||||
(i) in respect of the year 2003, 20 October 2003, | ||||||
(ii) in respect of the year 2004, 20 October 2004, and | ||||||
(iii) in respect of the year 2005, 20 October 2005; | ||||||
‘group assessable amount’, in relation to a year, means the aggregate of the assessable amounts in relation to companies which, at the due date for the year, are members of the group; | ||||||
‘group relevant deposits’ for any year in relation to a group of companies, means the aggregate of the amounts of average relevant deposits in relation to companies which, on the due date for the year, are members of the group; | ||||||
‘group stamp duty’, in relation to a group of companies, means the aggregate of the amounts of stamp duty which would, if subsection (7) were deleted, be payable under subsection (6) by companies which, on the due date for the year, are members of the group; | ||||||
‘relevant person’ means a person who was obliged to pay— | ||||||
(i) appropriate tax under section 258(3), or | ||||||
(ii) an amount on account of appropriate tax under section 258(4) or 259(4), | ||||||
of the Taxes Consolidation Act 1997 in the year 2001; | ||||||
‘relevant retention tax’, in relation to a relevant person, means an amount determined by the formula— | ||||||
A + B — C | ||||||
where— | ||||||
A is an amount equal to the aggregate of— | ||||||
(i) appropriate tax paid by the person in the year 2001 under section 258(3) of the Taxes Consolidation Act 1997 , and | ||||||
(ii) the amount paid by the person in the year 2001 on account of appropriate tax under section 258(4) or 259(4) of that Act, | ||||||
B is the aggregate of any amounts of appropriate tax, or any amounts on account of appropriate tax, paid by the person after the year 2001 which, in accordance with section 258 or 259 of that Act, should have been paid by the person in the year 2001, and | ||||||
C is the aggregate of any amounts of appropriate tax paid by the person in the year 2001 which— | ||||||
(i) are included in A, and | ||||||
(ii) were agreed by the person and an officer of the Commissioners at or before the time of payment as being tax which, in accordance with the said section 258, should have been paid before the year 2001; | ||||||
‘year 2001’ means the period of 12 months ending on 31 December 2001. | ||||||
(b) For the purposes of this section— | ||||||
(i) 2 companies shall be deemed to be members of a group if one company is a 51 per cent subsidiary (within the meaning of section 9 of the Taxes Consolidation Act 1997 ) of the other company or both companies are 51 per cent subsidiaries of a third company, and | ||||||
(ii) a company and all its 51 per cent subsidiaries shall form a group and, where that company is a member of a group as being itself a 51 per cent subsidiary, that group shall comprise all its 51 per cent subsidiaries and the first-mentioned group shall be deemed not to be a group; but a company which is not a member of a group shall be treated as if it were a member of a group which consists of that company, and accordingly references to group assessable amount, group relevant deposits and group stamp duty shall be construed as if they were respectively references to assessable amount, relevant deposits and stamp duty of that company. | ||||||
(2) A relevant person shall for each of the years 2003, 2004 and 2005, not later than the due date in respect of that year, deliver to the Commissioners a statement in writing showing— | ||||||
(a) the assessable amount for that person, and | ||||||
(b) any amount which has been apportioned to the person in accordance with subsection (7). | ||||||
(3) Where at any time in a period commencing on 1 January 2001 and ending immediately before a due date— | ||||||
(a) a relevant person ceased to carry on a business in the course of which the person was obliged to pay any amount under section 258 or 259 of the Taxes Consolidation Act 1997 , and | ||||||
(b) another person (in this section referred to as the ‘successor person’) acquired the whole, or substantially the whole, of the business, | ||||||
the relevant person shall not be required to deliver a statement on the due date in accordance with subsection (2) but the successor person shall— | ||||||
(i) where the successor person is, apart from this subsection, required to deliver a statement on the due date in accordance with subsection (2), increase the assessable amount in that statement by the assessable amount in relation to the relevant person, and | ||||||
(ii) in any other case, deliver a statement on the due date in accordance with subsection (2) as if the successor person were the relevant person. | ||||||
(4) Where at any time in a period commencing at the time at which a successor person acquired the whole, or substantially the whole, of a business from the relevant person referred to in subsection (3) such that that subsection applies to the successor person and ending immediately before a due date— | ||||||
(a) the successor person ceased to carry on the business so acquired, and | ||||||
(b) another person (in this section referred to as the ‘next successor person’) acquired the whole, or substantially the whole, of the business. | ||||||
the successor person shall not be required to deliver a statement on the due date in accordance with subsection (3) but the next successor person shall— | ||||||
(i) where the next successor person is, apart from this subsection, required to deliver a statement on the due date in accordance with subsection (2), increase the assessable amount in that statement by the assessable amount in relation to the relevant person, and | ||||||
(ii) in any other case, deliver a statement on the due date in accordance with subsection (2) as if the next successor person were the relevant person. | ||||||
(5) Where at any time in a period commencing at the time at which a next successor person acquired the whole, or substantially the whole, of a business such that that person was required— | ||||||
(a) to increase an assessable amount by an assessable amount in relation to a relevant person, or | ||||||
(b) to deliver a statement as if the next successor person were a relevant person, | ||||||
and ending immediately before a due date— | ||||||
(i) the next successor person ceased to carry on the business so acquired, and | ||||||
(ii) another person (in this section referred to as the ‘further successor person’) acquired the whole, or substantially the whole, of the business, | ||||||
the next successor person shall not be required to deliver a statement on the due date in accordance with subsection (4) but the further successor person shall— | ||||||
(I) where the further successor person is, apart from this subsection, required to deliver a statement on the due date in accordance with subsection (2), increase the assessable amount in that statement by the assessable amount in relation to the relevant person, and | ||||||
(II) in any other case, deliver a statement on the due date in accordance with subsection (2) as if the further successor person were the relevant person, | ||||||
and so on for further successions. | ||||||
(6) Subject to subsection (7), there shall be charged on any statement delivered in accordance with subsection (2) a stamp duty of an amount equal to 50 per cent of the assessable amount. | ||||||
(7) (a) Where, as respects a group of companies, the group stamp duty for a year exceeds an amount equal to 0.15 per cent of the group relevant deposits for the year, so much of the excess as bears to that amount the same proportion as the assessable amount for the year in relation to a company which is a member of the group bears to the group assessable amount for that year shall be apportioned to the company; but the companies which are members of the group may, by giving notice in writing to the Commissioners by the due date for that year, elect to have the excess apportioned in such manner as is specified in the notice. | ||||||
(b) Where an amount (in this paragraph referred to as the ‘apportioned amount’) has been apportioned to a company under paragraph (a), the amount to be charged under subsection (6) shall be reduced by the apportioned amount. | ||||||
(8) The stamp duty charged by subsection (6) upon a statement delivered by a relevant person in accordance with subsection (2) shall be paid by that person upon delivery of the statement. | ||||||
(9) There shall be furnished to the Commissioners by a relevant person such particulars as the Commissioners may require in relation to any statement required by this section to be delivered by the person. | ||||||
(10) In the case of failure by a relevant person— | ||||||
(a) to deliver any statement required to be delivered by that person under subsection (2), or | ||||||
(b) to pay the stamp duty chargeable on any such statement, | ||||||
on or before the due date in respect of the year concerned, the person shall, from the due date concerned until the day on which the stamp duty is paid, be liable to pay, by way of penalty, in addition to the stamp duty, interest on the stamp duty at the rate of 0.0322 per cent per day or part of a day and also from 20 October of the year in which the statement is to be delivered in accordance with subsection (2), by way of penalty, a sum equal to 1 per cent of the stamp duty for each day the stamp duty remains unpaid and each penalty shall be recoverable in the same manner as if the penalty were part of the stamp duty. | ||||||
(11) The delivery of any statement required by subsection (2) may be enforced by the Commissioners under section 47 of the Succession Duty Act 1853, in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section. | ||||||
(12) The stamp duty and any penalty due under subsection (10) charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty payable by the relevant person which is under the care and management of the Commissioners.”. | ||||||
Amendment of Part 11 (management provisions) of Principal Act. |
142. —(1) Part 11 of the Principal Act is amended by inserting the following chapter after Chapter 6: | |||||
“CHAPTER 7 | ||||||
Time limit for repayment of stamp duty, interest on repayment and time limits for enquiries and assessments | ||||||
| ||||||
| ||||||
| ||||||
(2) This section shall come into effect on such day or days as the Minister for Finance may by order or orders, either generally or with reference to any particular purpose or provision, appoint and different days may be so appointed for different purposes or different provisions. | ||||||
Amendment of Schedule 1 to Principal Act. |
143. —(1) Schedule 1 to the Principal Act is amended— | |||||
(a) in the Heading “BILL OF EXCHANGE or PROMISSORY NOTE” by substituting “€0.15” for “€0.08” in both places where it occurs, | ||||||
(b) in the Heading “CONVEYANCE or TRANSFER on sale of any stocks or marketable securities” by substituting “the amount so calculated shall, if less than €1, be rounded up to €1 and, if more than €1, be rounded down to the nearest €” for “the amount so calculated shall be rounded down to the nearest €”, | ||||||
(c) by substituting the paragraphs set out in Part 1 of Schedule 5 for paragraphs (7) to (14) of the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance”, and | ||||||
(d) by substituting the subparagraph set out in Part 2 of Schedule 5 for subparagraph (b) of paragraph (3) of the Heading “LEASE”. | ||||||
(2) Subsection (4)(c) does not apply to paragraphs (c) and (d) of subsection (1) as respects any instrument executed before 1 March 2003, where— | ||||||
(a) the effect of the application of subsection (4)(c) would be to increase the duty otherwise chargeable on the instrument, and | ||||||
(b) the instrument contains a statement, in such form as the Commissioners may specify, certifying that the instrument was executed solely in pursuance of a binding contract entered into prior to 4 December 2002. | ||||||
(3) The furnishing of an incorrect certificate for the purposes of subsection (2) shall be deemed to constitute the delivery of an incorrect statement for the purposes of section 1078 of the Taxes Consolidation Act 1997 . | ||||||
(4) (a) Subsection (1) (a) applies and has effect with respect to bills of exchange (other than cheques) and promissory notes drawn on or after 1 January 2003 and with respect to cheques drawn on or after 5 December 2002, | ||||||
(b) subsections (1) (b) and (3) apply and have effect as respects instruments executed on or after 6 February 2003, and | ||||||
(c) subject to subsection (2), paragraphs (c) and (d) of subsection (1) apply and have effect as respects instruments executed on or after 4 December 2002. |