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8 2004

Finance Act 2004

Chapter 2

Income Tax

Age exemption.

2. —As respects the year of assessment 2004 and subsequent years of assessment, section 188 of the Principal Act is amended, in subsection (2), by substituting “€31,000” for “€30,000” (inserted by the Finance Act 2003 ) and “€15,500” for “€15,000” (as so inserted).

Employee tax credit.

3. —(1) As respects the year of assessment 2004 and subsequent years of assessment, section 472 of the Principal Act is amended, in subsection (4), by substituting “€1,040” for “€800” (inserted by the Finance Act 2003 ) in both places where it occurs.

(2) Section 3 of the Finance Act 2002 , shall have effect subject to the provisions of this section.

Amendment of section 472C (relief for trade union subscriptions) of Principal Act.

4. —As respects the year of assessment 2004 and subsequent years of assessment, section 472C (inserted by the Finance Act 2001 ) of the Principal Act is amended, in subsection (1), by substituting “€200” for “€130” in the definition of “specified amount”.

Amendment of Schedule 13 (accountable persons for purposes of Chapter 1 of Part 18) to Principal Act.

5. —(1) Schedule 13 to the Principal Act is amended—

(a) by substituting “25. The National Tourism Development Authority.” for paragraph 25,

(b) by deleting paragraph 27,

(c) by substituting “83. The Commission for Communications Regulation.” for paragraph 83,

(d) by substituting “94. The Standards in Public Office Commission.” for paragraph 94, and

(e) by inserting the following after paragraph 140 (inserted by the Personal Injuries Assessment Board Act 2003 ):

“141. The National Council for Curriculum and Assessment.

142. The State Examinations Commission.

143. The Special Residential Services Board.”.

(2) (a) Paragraphs (a) and (b) of subsection (1) shall be deemed to have come into force and shall take effect as on and from 28 May 2003.

(b) Paragraph (c) of subsection (1) shall be deemed to have come into force and shall take effect as on and from 1 December 2002.

(c) Paragraph (d) of subsection (1) shall be deemed to have come into force and shall take effect as on and from 10 December 2001.

(d) Paragraph (e) of subsection (1) comes into operation on 1 May 2004.

Amendment of section 189 (payment in respect of personal injuries) of Principal Act.

6. —Section 189 of the Principal Act is amended in subsection (1) by substituting the following for paragraph (b):

“(b) (i) pursuant to the issue of an order to pay under section 38 of the Personal Injuries Assessment Board Act 2003 , or

(ii) following the institution by or on behalf of the individual of a civil action for damages,

in respect of personal injury giving rise to that mental or physical infirmity.”.

Exemption in respect of certain payments under employment law.

7. —The Principal Act is amended in Chapter 1 of Part 7 by inserting the following after section 192:

“192A.—(1) In this section—

‘relevant Act’ means an enactment which contains provisions for the protection of employees' rights and entitlements or for the obligations of employers towards their employees; relevant authority' means any of the following—

(a) a right commissioner,

(b) the Director of Equality Investigations,

(c) the Employment Appeals Tribunal,

(d) the Labour Court,

(e) the Circuit Court, or

(f) the High Court.

(2) Subject to subsections (3) and (5), this section applies to a payment under a relevant Act, to an employee or former employee by his or her employer or former employer, as the case may be, which is made, on or after 4 February 2004, in accordance with a recommendation, decision or a determination by a relevant authority in accordance with the provisions of that Act.

(3) A payment made in accordance with a settlement arrived at under a mediation process provided for in a relevant Act shall be treated as if it had been made in accordance with a recommendation, decision or determination under that Act of a relevant authority.

(4)  (a)  Subject to subsection (5) and without prejudice to any of the terms or conditions of an agreement referred to in this subsection, this section shall apply to a payment—

(i) made, on or after 4 February 2004, under an agreement evidenced in writing, being an agreement between persons who are not connected with each other (within the meaning of section 10), in settlement of a claim which—

(I) had it been made to a relevant authority, would have been a bona fide claim made under the provisions of a relevant Act,

(II) is evidenced in writing, and

(III) had the claim not been settled by the agreement, is likely to have been the subject of a recommendation, decision or determination under that Act by a relevant authority that a payment be made to the person making the claim,

(ii) the amount of which does not exceed the maximum payment which, in accordance with a decision or determination by a relevant authority (other than the Circuit Court or the High Court) under the relevant Act, could have been made under that Act in relation to the claim, had the claim not been settled by agreement, and

(iii) where—

(I) copies of the agreement and the statement of claim are kept and retained by the employer, by or on behalf of whom the payment was made, for a period of six years from the day on which the payment was made, and

(II) the employer has made copies of the agreement and the statement of claim available to an officer of the Revenue Commissioners where the officer has requested the employer to make those copies available to him or her.

(b)  (i)  On being so requested by an officer of the Revenue Commissioners, an employer shall make available to the officer all copies of—

(I) such agreements as are referred to in paragraph (a) entered into by or on behalf of the employer, and

(II) the statements of claim related to those agreements,

kept and retained by the employer in accordance with subparagraph (iii) of that paragraph.

(ii) The officer may examine and take extracts from or copies of any documents made available to him or her under this subsection.

(5) This section shall not apply to so much of a payment under a relevant Act or an agreement referred to in subsection (4) as is—

(a) a payment, however described, in respect of remuneration including arrears of remuneration, or

(b) a payment referred to in section 123(1) or 480(2)(a).

(6) Payments to which this section applies shall be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.”.

Exemption in respect of certain benefits-in-kind.

8. —(1) Part 5 of the Principal Act is amended—

(a) in section 116—

(i) by inserting the following after the definition of “business premises”:

“‘business use’, in relation to the use of an asset by a person, means the use of that asset by the person in the performance of the duties of the person's office or employment;”,

and

(ii) by inserting the following after the definition of “employment”:

“‘private use’, in relation to an asset, means use of the asset other than business use.”,

(b) in section 118 by substituting the following for subsection (5A) (inserted by the Finance Act 1999 ):

“(5A) (a) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee of a monthly or annual bus or railway pass issued by or on behalf of one or more approved transport providers for travel on either or both bus and railway.

(b) In this subsection—

‘approved transport provider’ means—

(a) Coras Iompair Éireann or any of its subsidiaries,

(b) a holder of a passenger licence granted under section 7 of the Road Transport Act 1932 ,

(c) a person who provides a passenger transport service under an arrangement entered into with Coras Iompair Éireann in accordance with section 13(1) of the Transport Act 1950 ,

(d) the Railway Procurement Agency or any of its subsidiaries, or

(e) a person who has entered into an arrangement with the Railway Procurement Agency, in accordance with section 43(6) of the Transport (Railway Infrastructure) Act 2001 to operate a railway;

‘railway pass’ includes a pass issued by a railway designated as a light railway or as a metro in a railway order issued under section 43 of the Transport (Railway Infrastructure) Act 2001 .

(5B) (a) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision, without any transfer of the property in it, for a director or employee of a mobile telephone for business use where private use of the mobile telephone is incidental.

(b) The mobile telephones to which the exemption provided by this subsection applies include any mobile telephone provided in connection with a car or van notwithstanding that the vehicle is made available as referred to in section 121 or 121A, as the case may be.

(c) In this subsection ‘mobile telephone’ means telephone apparatus which—

(i) is not physically connected to a land-line, and

(ii) is not a cordless telephone.

(d) For the purposes of paragraph (c)—

‘cordless telephone’ means telephone apparatus designed or adapted to provide a wireless extension to a telephone, and used only as such an extension to a telephone that is physically connected to a land-line;

‘telephone apparatus’ means wireless telegraphy apparatus designed or adapted for the purposes of transmitting and receiving either or both spoken messages and information (being information for the same purposes as the Electronic Commerce Act 2000 ) and connected to a public telecommunications network (as defined in the European Communities (Telecommunications Services) Regulations 1992 (S.I. No. 45 of 1992)).

(5C) (a) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee of a high-speed internet connection to the director's or employee's home for business use where private use of the connection is incidental.

(b) In this subsection ‘high-speed internet connection’ means a connection capable of transmitting information (being information for the same purposes as the Electronic Commerce Act 2000 ) at a rate equal to or greater than 250 kilobits per second.

(5D) (a) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision, without any transfer of the property in it, for a director or employee of computer equipment for business use where private use of the computer equipment is incidental.

(b) In this section ‘computer equipment’, in addition to a computer, includes—

(i) a facsimile machine, and

(ii) printers, scanners, modems, discs, disc drives, and other peripheral devices designed to be used by being connected to or inserted in a computer and computer software to be used in such equipment.

(5E) (a) Subsection (1) shall not apply to expense incurred by the body corporate, or incurred by a director or employee and reimbursed by the body corporate, in or in connection with the payment on behalf of a director or employee of the annual membership fees of a professional body where membership of that body by the director or employee is relevant to the business of the body corporate.

(b) Membership of a professional body by a director or employee of a body corporate may be regarded as relevant to the business of that body corporate where—

(i) it is necessary for the performance of the duties of the office or employment of the director or employee, or

(ii) it facilitates the acquisition of knowledge which—

(I) is necessary for or directly related to the performance of the duties of the office or employment of the director or employee, or

(II) would be necessary for or directly related to the performance of prospective duties of the office or employment of the director or employee with that body corporate.

(5F) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision, without any transfer of the property in it, for a director or employee of a mechanically propelled road vehicle which is—

(a) designed or constructed solely or mainly for the carriage of goods or other burden, and

(b) of a type not commonly used as a private vehicle and unsuitable to be so used.”,

and

(c) in section 121A (inserted by the Finance Act 2003 )—

(i) in subsection (1)—

(I) by inserting the following before the definition of “van”:

“‘gross vehicle weight’, in relation to a vehicle, means the weight which the vehicle is designed or adapted not to exceed when in normal use and travelling on the road laden.”,

and

(II) in the definition of “van”—

(A) by deleting “and” in paragraph (b),

(B) by substituting “areas, and” for “areas.”, in paragraph (c), and

(C) by inserting the following after paragraph (c):

“(d) has a gross vehicle weight not exceeding 3,500 kilograms.”,

and

(ii) by inserting the following after subsection (2):

“(2A) Subsection (2) shall not apply for a year of assessment in respect of the private use of a van made available to a person (in this subsection referred to as the ‘employee’) as set out in that subsection where the following conditions are met—

(a) the van made available to the employee is necessary for the performance of the duties of the employee's employment,

(b) the employee is required by the person who made the van available to keep it, when not in use in the performance of the duties of the employee's employment, at or in the vicinity of the employee's private residence,

(c) apart from travel between the employee's private residence and workplace, other private use of the van is prohibited by the person making the van available and there is no such other private use, and

(d) in the performance of the duties of his or her employment, the employee spends at least 80 per cent of his or her time engaged on such duties away from the premises of the employer to which the employee is attached.”.

(2) This section is deemed to have come into force and taken effect as on and from 1 January 2004.

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

9. —(1) Chapter 4 of Part 42 of the Principal Act is amended—

(a) in section 985A (inserted by the Finance Act 2003 )—

(i) in subsection (1)—

(I) by substituting “Subject to subsection (1A), this section applies” for “This section applies”, and

(II) by deleting “excluding perquisites or profits whatever in the form of shares (including stock) in a company, but” in paragraph (a),

(ii) by inserting the following after subsection (1)—

“(1A) Subsection (1) shall not apply to emoluments in the form of perquisites or profits whatever received by an employee in the form of shares (including stock) being shares or stock in—

(a) the company in which the employee holds his or her office or employment, or

(b) a company which has control (within the meaning of section 432) of that company.”,

(iii) by inserting the following after subsection (4)—

“(4A) Any amount of tax which an employer remits in accordance with subsection (4) and any regulations made under that subsection in respect of a notional payment shall be treated as an amount of tax which, at the time the notional payment is made, is deducted in respect of the employee's liability to income tax.”,

and

(iv) by inserting the following after subsection (6):

“(7) 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 thereunder.”,

(b) by inserting the following after section 985A—

“PAYE settlement agreements.

985B.—(1) In this section ‘qualifying emoluments’ means emoluments, other than emoluments in the form of a payment of money, which are—

(a) minor, as regards the amount or type of emolument involved, and

(b) irregular, as to the frequency in which or the times at which, the emoluments are provided.

(2) Subject to this section, the Revenue Commissioners may, on application in that behalf from an employer, enter into an agreement with the employer under which the employer shall account to them in accordance with the provisions of this section in respect of income tax in respect of qualifying emoluments for a year of assessment of one or more employees of the employer which the employer would otherwise have to account for in accordance with the other provisions of this Chapter and any regulations made under those provisions.

(3) Where an employer accounts for income tax under an agreement made in accordance with this section—

(a) the employer shall not be liable to account for that tax under the other provisions of this Chapter and any regulations made under those provisions,

(b) qualifying emoluments covered by the agreement shall not be reckoned in computing, for the purposes of the Income Tax Acts, the total income of the employee concerned,

(c) the amount accounted for shall not be treated as having been deducted in accordance with the other provisions of this Chapter and any regulations under those provisions,

(d) an employee shall not be treated as having paid any part of the income tax accounted for by his or her employer and, accordingly, the employee shall not be entitled to a credit in respect of, or to claim or receive repayment of, any part of that tax, and

(e) emoluments covered by the agreement shall not be included in a return by the employer under Regulation 31 of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001).

(4) The amount in respect of income tax to be accounted for by an employer under an agreement entered into under this section shall be specified in the agreement and shall be—

(a) determined in accordance with the factors specified in subsection (5)(a), and

(b) comprised of the amounts specified in subsection (5)(b).

(5) (a) The factors specified for the purposes of subsection (4)(a) are—

(i) the aggregate amount of the qualifying emoluments covered by the agreement on which income tax is chargeable,

(ii) the total number of employees in receipt of qualifying emoluments covered by the agreement,

(iii) the number of those employees respectively chargeable to income tax—

(I) only at the standard rate for the year of assessment to which the agreement relates, and

(II) at both the standard rate and the higher rate for that year,

and

(iv) such other matters as are agreed by the Revenue Commissioners and the employer to be relevant in relation to the qualifying emoluments covered by the agreement.

(b) The amounts specified for the purposes of subsection (4)(b) are—

(i) an amount equal to income tax on the aggregate of the amounts computed in accordance with paragraph (a)(i), calculated so as to take account of the factor specified in paragraph (a)(iii), and

(ii) a further amount reflecting the income tax on the benefit to the employees of receiving the qualifying emoluments included in the agreement without liability to tax.

(6) Where an employer wishes to avail of this section for a year of assessment, the employer shall make application in writing in that behalf to the Revenue Commissioners which is received by them on or before 31 December in that year.

(7) If the amount of income tax which an employer is to account for in relation to a year of assessment in accordance with an agreement entered into under this section is not paid to the Collector-General within 46 days of the end of that year, the agreement shall be null and void and, accordingly, this Chapter and any regulations made thereunder shall apply as if this section had not been enacted.

(8) Any act to be performed or function to be discharged by the Revenue Commissioners which is authorised by this section may be performed or discharged by any of their officers acting under their authority.”,

(c) in section 994, by substituting the following for subsection (1):

“(1) In this section ‘employer's liability for the period of 12 months’ means the aggregate of—

(a) all sums which an employer was liable under this Chapter and any regulations under this Chapter to deduct from emoluments to which this Chapter applies paid by the employer, and

(b) all sums that were not so deducted but which an employer was liable, in accordance with section 985A and any regulations under that section, to remit to the Collector-General in respect of notional payments made by the employer,

during the period of 12 months referred to in subsection (2), reduced by any amounts which the employer was liable under this Chapter and any regulations under this Chapter to repay during the same period, and subject to the addition of interest payable under section 991.”,

and

(d) in section 995 by substituting the following for paragraph (a)(i):

“(i) which, apart from Regulation 29 of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001), would otherwise have been an amount due at the relevant date in respect of—

(I) sums which an employer is liable under this Chapter and any regulations under this Chapter (other than Regulation 29 of those Regulations) to deduct from emoluments, to which this Chapter applies, paid by the employer, and

(II) sums that were not so deducted but which the employer was liable, in accordance with section 985A and any regulations under that section, to remit to the Collector-General in respect of notional payments made by the employer,

during the period of 12 months next before the relevant date,”.

(2)  (a) Subject to paragraph (b), subsection (1) has effect as on and from the passing of this Act.

(b) Subsection (1) (a) (iii) applies as respects the year of assessment 2004 and subsequent years of assessment.

Amendment of section 122 (preferential loan arrangements) of Principal Act.

10. —(1) Section 122 of the Principal Act is amended in paragraph (a) of subsection (1)—

(a) by substituting the following for paragraph (i) of the definition of “employer”:

“(i) a person of whom the individual or the spouse of the individual is or was an employee,”,

and

(b) by substituting “3.5 per cent” for “4.5 per cent” (inserted by the Finance Act 2003 ) in both places where it occurs in the definition of “the specified rate”.

(2)  (a) Subsection (1)(a) applies as respects loans made on or after 4 February 2004.

(b) Subsection (1)(b) applies with effect from 1 January 2004.

Amendment of section 470 (relief for insurance against expenses of illness) of Principal Act.

11. —Section 470 of the Principal Act is amended, as on and from the passing of this Act, in subsection (1)—

(a) by substituting the following for the definition of “authorised insurer”:

“ ‘authorised insurer’ means—

(a) any undertaking entered in the Register of Health Benefits Undertakings, lawfully carrying on such business of medical insurance referred to in paragraph (a) of the definition of ‘relevant contract’ but, in relation to an individual, also means any undertaking authorised pursuant to Council Directive No. 73/239/EEC of 24 July 19731 , Council Directive No. 88/357/EEC of 22 June 19882 , and Council Directive No. 92/49/EEC of 18 June 19923 , where such a contract was effected with the individual when the individual was not resident in the State but was resident in another Member State of the European Communities, or

(b) (i) any undertaking standing authorised under—

(I) the European Communities (Non-Life Insurance) Framework Regulations 1994 (S.I. No. 359 of 1994),

(II) the European Communities (Non-Life Insurance) Regulations 1976 (S.I. No. 115 of 1976), or

(III) the European Communities (Non-Life Insurance) (Amendment) (No. 2) Regulations 1991 (S.I. No. 142 of 1991),

or

(ii) any undertaking authorised by the authority charged by law with the duty of supervising the activities of insurance undertakings in a Member State of the European Communities other than the State in accordance with Article 6 of Council Directive No. 73/239/EEC of 24 July 1973 as inserted by Article 4 of Council Directive No. 92/49/EEC of 18 June 1992,

lawfully carrying on such business of dental insurance referred to in paragraph (b) of the definition of ‘relevant contract’;”,

and

(b) by substituting the following for the definition of “relevant contract”:

“ ‘relevant contract’ means a contract of insurance which, in relation to an individual, the spouse of the individual, or the children or other dependants of the individual or of the spouse of the individual, provides specifically, whether in conjuction with other benefits or not, for the reimbursement or discharge, in whole or in part, of—

(a) actual health expenses (within the meaning of section 469), being a contract of medical insurance, or

(b) dental expenses other than expenses in respect of routine dental treatment (within the meaning of section 469), being a contract of dental insurance;”.

Payments under Scéim na bhFoghlaimeoirí Gaeilge.

12. —The Principal Act is amended in Chapter 1 of Part 7 by inserting the following after section 216A (inserted by the Finance Act 2001 ):

“Payments under Scéim na bhFoghlaimeoirí Gaeilge.

216B.—(1) This section shall apply, in the case of a qualified applicant under a scheme administered by the Minister for Community, Rural and Gaeltacht Affairs and known as Scéim na bhFoghlaimeoirí Gaeilge, to any income received under that scheme in respect of a person who is temporarily resident with the qualified applicant, together with any other income received in the ordinary course in respect of such temporary resident.

(2) Notwithstanding any provision of the Income Tax Acts, income to which this section applies shall be disregarded for the purposes of those Acts.”.

Amendment of Chapter 2 (farming: relief for increase in stock values) of Part 23 of Principal Act.

13. —(1) Chapter 2 of Part 23 of the Principal Act is amended—

(a) in subsection 667(1)—

(i) by substituting “In this section, but subject to section 667A,” for “In this section,”,

(ii) in paragraph (b)(iii) of the definition of “qualifying farmer”—

(I) by inserting “or” after “so set out,” in clause (I),

(II) by substituting “180 hours.” for “180 hours,” in clause (II) and by deleting “or” where it last occurs in that clause, and

(III) by deleting clause (III),

and

(b) by inserting the following after section 667:

“Further provisions for qualifying farmers.

667A.—(1) In this section ‘qualifying farmer’ means an individual who—

(a) in the year 2004 or any subsequent year of assessment first qualifies for grant aid under the Scheme of Installation Aid for Young Farmers operated by the Department of Agriculture and Food under Council Regulation (EEC) No. 797/85 of 12 March 19851 or that Regulation as may be revised from time to time, or

(b) (i) first becomes chargeable to income tax under Case I of Schedule D in respect of profits or gains from the trade of farming for the year 2004 or any subsequent year of assessment,

(ii) has not attained the age of 35 years at the commencement of the year of assessment referred to in subparagraph (i), and

(iii) at any time in the year of assessment so referred to satisfies the conditions set out in subsection (2), (3) or (4).

(2) The conditions required by this subsection are that the individual, referred to in the definition of ‘qualifying farmer’ in subsection (1), is the holder of a qualification set out in the Table to this section (in this section referred to as the ‘Table’), and—

(a) in the case of a qualification set out in paragraph 1(f) or paragraph 2(h) of the Table, is also the holder of a certificate awarded by the Further Education and Training Awards Council for achieving the minimum stipulated standard in assessments completed in a course of training, approved by Teagasc—

(i) in either or both agriculture and horticulture, the aggregate duration of which exceeded 100 hours, and

(ii) in farm management, the aggregate duration of which exceeded 80 hours,

or

(b) in the case of a qualification set out in subparagraph (b), (c) or (d) of paragraph 3 of the Table, is also the holder of a certificate awarded by the Further Education and Training Awards Council for achieving the minimum stipulated standard in assessments completed in a course of training, approved by Teagasc, in farm management, the aggregate duration of which exceeded 80 hours.

(3) The conditions required by this subsection are that the individual, referred to in the definition of ‘qualifying farmer’ in subsection (1)—

(a) has achieved the required standard for entry into the third year of a full-time course of 3 or more years' duration in any discipline at a third-level institution and that has been confirmed by that institution, and

(b) is the holder of a certificate awarded by the Further Education and Training Awards Council for achieving a minimum stipulated standard in assessments completed in a course of training, approved by Teagasc—

(i) in either or both agriculture and horticulture, the aggregate duration of which exceeded 100 hours, and

(ii) in farm management, the aggregate duration of which exceeded 80 hours.

(4) The conditions required by this subsection are that the individual, referred to in the definition of ‘qualifying farmer’ in subsection (1), is the holder of a letter of confirmation from Teagasc confirming satisfactory completion of a course of training, approved by Teagasc, for persons who in the opinion of Teagasc are restricted in their learning capacity due to physical, sensory, mental health or intellectual disability.

(5) For the purposes of subsection (2) where Teagasc certifies that—

(a) any other qualification corresponds to a qualification set out in the Table, and

(b) that other qualification is deemed by the National Qualifications Authority of Ireland to be at least at a standard equivalent to that of the qualification set out in the Table,

then that other qualification shall be treated as if it were the qualification set out in the Table.

(6) In the case of a qualifying farmer—

(a) section 666(1) shall apply as if ‘100 per cent’ were substituted for ‘25 per cent’, and

(b) paragraph (a) shall apply in computing a person's trading profits for an accounting period in the case of an individual who becomes a qualifying farmer at any time in the period beginning on or after 1 January 2004 and ending on or before 31 December 2004, for the year of assessment in which the individual becomes a qualifying farmer and for each of the 3 immediately succeeding years of assessment.

(7) For the purposes of this section, an individual who, before 1 January 2004—

(a) is the holder of a qualification set out in the Table to section 667 or a qualification certified by Teagasc as corresponding to such a qualification so set out, in respect of which—

(i) satisfactory attendance at a course of training in farm management, the aggregate duration of which exceeded 80 hours, is required in order for the conditions of paragraph (b)(iii) of the definition of ‘qualifying farmer’ in section 667(1) to be satisfied, shall be deemed to be the holder of a qualification corresponding to that set out in paragraph 3(b) of the Table, or

(ii) satisfactory attendance at a course of training is not required in order for the conditions of paragraph (b)(iii) of the definition of ‘qualifying farmer’ in section 667(1) to be satisfied, shall be deemed to be the holder of a qualification corresponding to that set out in paragraph 2(a) of the Table,

(b) satisfies the requirements set out in paragraph (b)(iii)(II)(A) of the definition of ‘qualifying farmer’ in section 667(1), shall be deemed to satisfy the requirements set out in subsection (3)(a), and

(c) is the holder of a certificate issued by Teagasc certifying satisfactory attendance at a course of training—

(i) in farm management, the aggregate duration of which exceeded 80 hours, shall be deemed to be the holder of a certificate referred to in subsection (2)(b), or

(ii) in either or both agriculture and horticulture, the aggregate duration of which exceeded 180 hours, shall be deemed to be the holder of a certificate referred to in subsection (2)(a).

TABLE

 

1. Qualifications awarded by the Further Education and Training Awards Council:

(a) Vocational Certificate in Agriculture — Level 3;

(b) Advanced Certificate in Agriculture;

(c) Vocational Certificate in Horticulture — Level 3;

(d) Vocational Certificate in Horse Breeding and Training — Level 3;

(e) Vocational Certificate in Forestry — Level 3;

(f) Awards other than those referred to in subparagraphs (a) to (e) which are, at least, at a standard equivalent to that of the award referred to in subparagraph (a).

2. Qualifications awarded by the Higher Education and Training Awards Council:

(a) National Certificate in Agriculture;

(b) National Diploma in Agriculture;

(c) National Certificate in Science in Agricultural Science;

(d) National Certificate in Business Studies in Agri-Business;

(e) National Certificate in Technology in Agricultural Mechanisation;

(f) National Diploma in Horticulture;

(g) National Certificate in Business Studies in Equine Studies;

(h) National Certificate or Diploma awards other than those referred to in subparagraphs (a) to (g).

3. Qualifications awarded by other third-level institutions:

(a) Primary degrees awarded by the faculties of General Agriculture and Veterinary Medicine at University College Dublin;

(b) Bachelor of Science (Education) in Biological Sciences awarded by the University of Limerick;

(c) Bachelor of Science in Equine Science awarded by the University of Limerick;

(d) Diploma or Certificate in Science (Equine Science) awarded by the University of Limerick.”.

(2) Subsection (1) shall apply and have effect as on and from 1 January 2004.

Amendment of section 664 (relief for certain income from leasing of farm land) of Principal Act.

14. —(1) Section 664 of the Principal Act is amended—

(a) in subsection (1)(a)—

(i) in paragraph (i) of the definition of “qualifying lessor” by substituting “40 years” for “55 years”,

(ii) in the definition of “the specified amount” by substituting—

(I) in paragraph (ii)(IV)(B) “in any other case,” for “in any other case, or”, and

(II) the following for paragraph (ii)(V):

“(V) in the period beginning on 23 January 1996, and ending on 31 December 2003—

(A) €7,618.43, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and

(B) €5,078.95, in any other case,

or

(VI) on or after 1 January 2004—

(A) €10,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and

(B) €7,500, in any other case,”,

and

(b) in subsection (1)(b) by substituting the following for subparagraph (iii):

“(iii) from a qualifying lease or qualifying leases made in the period beginning on 23 January 1996, and ending on 31 December 2003, and from a qualifying lease made before 23 January 1996, the specified amount shall not exceed—

(I) €7,618.43, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and

(II) €5,078.95, in any other case;

(iv) from a qualifying lease or qualifying leases made on or after 1 January 2004, and from a qualifying lease made at any other time, the specified amount shall not exceed—

(I) €10,000, in a case where the qualifying lease or qualifying leases is or are for a definite term of 7 years or more, and

(II) €7,500, in any other case.”.

(2) Subsection (1) shall apply and have effect as on and from 1 January 2004.

Amendment of Schedule 12 (employee share ownership trusts) to Principal Act.

15. —Schedule 12 to the Principal Act is amended—

(a) in paragraph 11(2C) by inserting “or (3)” after “subparagraph (2B)”, and

(b) in paragraph 11A—

(i) in subparagraph (5)(a) by inserting “or, in the case of a company referred to in clause (d) of the definition of ‘relevant company’ in paragraph 1(1), at some time within 9 months prior to that day,” after “established by that relevant company,”,

(ii) in subparagraph (6)(a) by inserting “or, in the case of a company referred to in clause (d) of the definition of ‘relevant company’ in paragraph 1(1), at some time within 9 months prior to that day,” after “established by that relevant company,”, and

(iii) in subparagraph (7) by inserting “or (6)” after “subparagraph (5)”.

Occupational pension schemes.

16. —(1) Section 772 of the Principal Act is amended by inserting the following after subsection (3D):

“(3E) A retirement benefits scheme shall neither cease to be an approved scheme nor shall the Revenue Commissioners be prevented from approving a retirement benefits scheme for the purposes of this Chapter because of any provision in the rules of the scheme which makes provision for borrowing by the scheme.”.

(2) Section 774 of the Principal Act is amended by substituting the following for subparagraph (ii) of subsection (7)(b):

“(ii) in the case of—

(I) such a contribution made on retirement, following an application in writing made before 6 February 2003 by the employee in response to an invitation in writing under the scheme, pursuant to the rules of the scheme—

(A) to contribute towards the purchase for superannuation purposes of relevant benefits, consisting of only a pension on retirement not exceeding one-eightieth of the employee's final remuneration for each year of service up to a maximum of 40 years and a lump sum not exceeding three-eightieths of the employee's final remuneration for each year of service up to a maximum of 40 years, in respect of actual service by the employee before becoming a member of the scheme, and

(B) to make such purchase by way of such a contribution either on retirement or otherwise,

and as a consequence of which application the employee opted, or was treated by the scheme as opting, to make the contribution on retirement, for the purposes of receiving relevant benefits under the scheme in excess of the benefits which, if the application referred to had not been made, the employee would otherwise have been entitled to receive under those rules, or

(II) a contribution to which paragraph (ba) applies,

be apportioned among such years as the Revenue Commissioners direct, and the amount of the contribution attributed thereby to any year shall be treated as an ordinary annual contribution paid in that year.”.

(3) Section 776 of the Principal Act is amended by substituting the following for subparagraph (ii) of subsection (2)(b):

“(ii) in the case of—

(I) such a contribution made on retirement, following an application in writing made before 6 February 2003 by the employee in response to an invitation in writing under the scheme, pursuant to the rules of the scheme—

(A) to contribute towards the purchase for superannuation purposes of relevant benefits, consisting of only a pension on retirement not exceeding one-eightieth of the employee's final remuneration for each year of service up to a maximum of 40 years and a lump sum not exceeding three-eightieths of the employee's final remuneration for each year of service up to a maximum of 40 years, in respect of actual service by the employee before becoming a member of the scheme, and

(B) to make such purchase by way of such a contribution either on retirement or otherwise,

and as a consequence of which application the employee opted, or was treated by the scheme as opting, to make the contribution on retirement, for the purposes of receiving relevant benefits under the scheme in excess of the benefits which, if the application referred to had not been made, the employee would otherwise have been entitled to receive under those rules, or

(II) a contribution to which paragraph (ba) applies,

be apportioned among such years as the Revenue Commissioners direct, and the amount of the contribution attributed thereby to any year shall be treated as an ordinary annual contribution paid in that year.”.

(4) (a) Subsection (1) applies as on and from the date of the passing of this Act.

(b) Subsections (2) and (3) are deemed to have applied as on and from 6 February 2003.

1 OJ No. L228, 16.8.1973, p.3

2 OJ No. L172, 4.7.1988, p.1

3 OJ No. L228, 11.8.1992, p.1

1 OJ No. L93, 30.3.1985, p.6