Health Contributions Act, 1979

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Number 4 of 1979

HEALTH CONTRIBUTIONS ACT, 1979

ARRANGEMENT OF SECTIONS

Number 4 of 1979

HEALTH CONTRIBUTIONS ACT, 1979

AN ACT TO PROVIDE FOR THE PAYMENT OF CONTRIBUTIONS TOWARDS THE COST OF THE PROVISION OF SERVICES UNDER THE HEALTH ACTS, 1947 TO 1977, AND TO PROVIDE FOR OTHER CONNECTED MATTERS. [14th March, 1979]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

Definitions.

1.—In this Act—

“the Act of 1970” means the Health Act, 1970 ;

“the Collector-General” means the Collector-General appointed under section 162 of the Income Tax Act, 1967 ;

“contribution year” means a year of assessment within the meaning of the Income Tax Acts;

“emoluments” means emoluments to which Chapter IV of Part V of the Income Tax Act, 1967 , but without regard to section 192 of that Act, applies, other than payments under—

(a) the Old Age Pensions Acts, 1908 to 1978,

(b) the Widows' and Orphans' Pensions Acts, 1935 to 1978,

(c) the Social Welfare Acts, 1952 to 1978;

“employed contributor”, “employment contributions” and “employer's contribution”have the same meanings respectively as in the Social Welfare Acts, 1952 to 1978;

“health board” means a health board established under the Act of 1970;

“health contributions” has the meaning assigned to it by section 4 of this Act;

“the Minister” means the Minister for Health.

Regulations defining “reckonable earnings”, “reckonable emoluments” and “reckonable income”.

2.—The Minister may by regulations define “reckonable earnings”, “reckonable emoluments” and “reckonable income” for the purposes of this Act.

Repeal of Health Contributions Acts, 1971 to 1978.

3.—The Health Contributions Acts, 1971 to 1978, are repealed with effect from the commencement of section 4 of this Act.

Obligation to pay health contributions.

4.—There shall be paid, subject to and in accordance with this Act and regulations under this Act, by or in respect of each individual who is over the age of sixteen years, contributions (which shall be known and are referred to in this Act as “health contributions”) towards the cost of the provision of services under the Health Acts, 1947 to 1977.

Health contributions by individuals with reckonable earnings.

5.—(1) The following provisions shall apply in relation to an individual referred to in section 4 of this Act who is in receipt of emoluments and who is an employed contributor under the Social Welfare Acts, 1952 to 1978:

(a) the employment contribution payable under those Acts or regulations thereunder shall be increased by the amount of the health contribution payable in respect of the reckonable earnings by reference to which the employment contribution is determined under those Acts, the health contribution being calculated at the rate of one per cent of the amount of such reckonable earnings, and being deemed to be an employment contribution within the meaning of those Acts;

(b) if the individual has, by virtue of section 45 of the Act of 1970, full eligibility for services under Part IV of that Act, the health contribution payable under paragraph (a) of this subsection shall be an employer's contribution;

(c) if the individual has not, by virtue of section 45 of the Act of 1970, full eligibility for services under Part IV of that Act, the health contribution payable under paragraph (a) of this subsection shall be a contribution by the employed contributor.

(2) Where in a particular contribution year an employed contributor's reckonable earnings have amounted to the sum of £5,000 and health contributions under subsection (1) of this section have been paid in respect of those reckonable earnings, no further such contributions shall be payable in respect of any reckonable earnings of that employed contributor in that contribution year.

Health contributions by individuals with emoluments other than reckonable earnings.

6.—(1) In relation to an individual referred to in section 4 of this Act who is in receipt of emoluments other than reckonable earnings, where a payment is made to or for the benefit of the individual in respect of his reckonable emoluments, a health contribution shall be payable of an amount calculated at the rate of one per cent of the amount of the reckonable emoluments to which such payment relates.

(2) Where in a particular contribution year the reckonable emoluments of an individual specified in subsection (1) of this section have amounted to the sum of £5,000 and health contributions under that subsection have been paid in respect of those reckonable emoluments, no further such contributions shall be payable in respect of any reckonable emoluments of that individual in that contribution year.

Health contributions by individuals with income other than emoluments.

7.—Where in relation to an individual referred to in section 4 of this Act, reckonable income other than emoluments arises in any contribution year, the health contribution payable by that individual for that contribution year in relation to that reckonable income shall be of an amount calculated at the rate of one per cent of that reckonable income.

Maximum health contribution payable.

8.—Notwithstanding any provision of section 5 , 6 or 7 of this Act, the total health contribution payable in respect of an individual in relation to a particular contribution year shall not exceed the amount appropriate to an aggregate of £5,000 in respect of reckonable income.

Confirmation and variation of rates and sums specified in Act.

9.—(1) The rate specified in sections 5 (1) (a), 6 (1) and 7 of this Act, and the sum specified in sections 5 (2), 6 (2) and 8 of this Act, shall be either confirmed or varied by regulations made by the Minister before the commencement of sections 5 to 8 of this Act.

(2) The Minister may by regulations vary the rate specified in sections 5 (1) (a), 6 (1) and 7 of this Act, and a rate so varied shall take effect from the beginning of the contribution year following that in which the regulations are made.

(3) The Minister may by regulations vary the sum specified in sections 5 (2), 6 (2) and 8 of this Act, and a sum so varied shall take effect from the beginning of the contribution year following that in which the regulations are made.

(4) When making regulations under subsection (3) of this section the Minister shall take into account any changes in the average earnings of workers in the transportable goods industries as recorded by the Central Statistics Office since the date by reference to which the sum specified in sections 5 (2), 6 (2) and 8 of this Act was last determined.

(5) Where regulations under subsection (2) or (3) of this section are proposed to be made, a draft of the proposed regulations shall be laid before each House of the Oireachtas and the regulations shall not be made until a resolution approving of the draft has been passed by each House.

Power to make regulations and to recover health contributions.

10.—(1) In relation to health contributions referred to in section 6 or 7 of this Act, the Minister may make regulations, subject to this Act, providing for—

(a) the determination of liability for health contributions;

(b) the time and manner of payment of health contributions;

(c) the collection and the recovery of, and the furnishing of information in relation to, health contributions;

(d) the estimation of amounts due in respect of health contributions, and the review of such estimates;

(e) adjustment in any case of underpayment or overpayment of health contributions;

(f) any matter ancillary or incidental to any of the matters referred to in paragraphs (a) to (e) of this subsection.

(2) Without prejudice to the generality of subsection (1) of this section, regulations under this section may provide for—

(a) the assignment of any function relating to any matter referred to in subsection (1) of this section to the Collector-General;

(b) the assignment of any function relating to any matter referred to in subsection (1) of this section to a health board;

(c) the inspection of records by or on behalf of the Revenue Commissioners.

(3) The following provisions apply in relation to health contributions referred to in section 6 or 7 of this Act:

(a) (i) The provisions of any enactment, regulation or rule of court relating to the inspection of records, the estimation, collection and recovery of, or the furnishing of information in relation to, income tax, shall, with any necessary modifications, apply in relation to health contributions which the Collector-General is obliged to collect as they apply in relation to income tax;

(ii) in proceedings instituted under this paragraph, a certificate purporting to be signed by the Collector-General which certifies that a stated amount is due and payable by the defendant shall be evidence until the contrary is proved that that amount is so due and payable, and when tendered in evidence shall be deemed until the contrary is proved to have been signed by him;

(iii) for the purposes of this paragraph, the rules of the court concerned for the time being applicable to civil proceedings shall apply to proceedings by virtue of this paragraph.

(b) Health contributions which a health board is obliged to collect may be recovered by the health board as a simple contract debt in any court of competent jurisdiction.

Individuals not liable for health contributions.

11.—(1) Notwithstanding any other provision of this Act—

(a) a health contribution referred to in section 5 of this Act shall not be payable in respect of an individual who is for the time being an individual who is in receipt of a pension, allowance, benefit or payment specified in subsection (2) of this section;

(b) a health contribution referred to in section 6 of this Act shall not be payable in respect of an individual who is for the time being an individual who, by virtue of section 45 of the Act of 1970, has full eligibility for services under Part IV of that Act or an individual who is in receipt of a pension, allowance, benefit or payment specified in subsection (2) of this section;

(c) in relation to a contribution year at any time in which an individual is an individual referred to in paragraph (b) of this subsection, a health contribution referred to in section 7 of this Act shall be restricted to such portion of what would otherwise be the appropriate health contribution as the portion of the contribution year during which the individual is not an individual referred to in paragraph (b) of this subsection bears to the whole contribution year.

(2) The following are the pensions, allowances, benefits or payments referred to in subsections (1) (a) and (1) (b) of this section:

(a) a widow's (contributory) pension;

(b) a widow's (non-contributory) pension;

(c) deserted wife's benefit;

(d) a deserted wife's allowance;

(e) death benefit by way of widow's pension under the Social Welfare (Occupational Injuries) Act, 1966 ;

(f) a social assistance allowance under section 8 of the Social Welfare Act, 1973 ;

(g) a payment corresponding to a pension referred to in paragraph (a) or (e) of this subsection from the competent authority of a Member State (other than the State) of the European Economic Community under legislation to which the regulations of the Community on the application of social security schemes to employed persons and their families moving within the territory of the Community apply.

Offences.

12.—(1) Without prejudice to the provisions of this Act or any regulations under it or to any other enactment referred to in this Act or regulations under such an enactment, if any person, whether for himself or some other person—

(a) fails or refuses to comply with a requirement of a regulation under this Act,

(b) knowingly makes any false statement or false representation or knowingly conceals any material fact in relation to any such requirement, or

(c) produces or furnishes, or causes or knowingly allows to be produced or furnished, any document or information in relation to any such requirement which he knows to be false in a material particular,

he shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding £500 or, at the discretion of the court, to imprisonment for any term not exceeding twelve months, or to both.

(2) Where a person fails to pay, in accordance with regulations, a health contribution which he is obliged to pay under section 6 or 7 of this Act, he shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding £500.

(3) A prosecution for an offence under this Act may be brought at the suit of the Minister, the appropriate health board or the Collector-General.

Payment of certain health contributions into Social Insurance Fund and to Minister.

13.—(1) Health contributions referred to in section 5 or 6 of this Act shall be paid into the Social Insurance Fund.

(2) All sums paid into the Social Insurance Fund under subsection (1) of this section, and all sums collected under section 7 of this Act, shall be paid over to the Minister and shall be disposed of by him in accordance with regulations made by him.

Supplying by Revenue Commissioners of certain information to Minister or health board.

14.—So far as may be necessary for the proper administration of the Act of 1970 and of this Act, information regarding health contributions and the reckonable earnings, reckonable emoluments and reckonable income of individuals in respect of whom health contributions are payable which is obtained by the Revenue Commissioners in connection with the collection of income tax or health contributions may be supplied by them to the Minister or to a health board.

Provisions relating to winding up and bankruptcy.

15.—(1) There shall be included among the debts which, under section 285 of the Companies Act, 1963 , are, in the distribution of the assets of a company being wound up, to be paid in priority to all other debts, health contributions referred to in section 6 of this Act payable by the company during the twelve months before the commencement of the winding up or the winding-up order, and that Act shall have effect accordingly, and formal proof of the debts to which priority is given under this subsection shall not be required except in cases where it may otherwise be provided by rules made under that Act.

(2) Subsection (1) of this section shall not apply where a company is wound up voluntarily merely for the purposes of reconstruction or of amalgamation with another company.

(3) There shall be included among the debts which, under section 4 of the Preferential Payments in Bankruptcy (Ireland) Act, 1889, are, in the distribution of the property of a bankrupt or arranging debtor, to be paid in priority to all other debts, all health contributions referred to in section 6 or 7 of this Act by the bankrupt or arranging debtor during the twelve months before the date of the order of adjudication in the case of a bankrupt or the filing of the petition for arrangement in the case of an arranging debtor, and that Act shall have effect accordingly, and formal proof of the debts to which priority is given under this subsection shall not be required except in cases where it may otherwise be provided by general orders made under the said Act.

Sanction of Minister for Finance required to certain regulations.

16.—Regulations under section 2 , 9 , 10 (1), 10 (2) (a), 10 (2) (c) or 13 (2) of this Act shall be subject to the sanction of the Minister for Finance.

Laying of regulations before Oireachtas.

17.—Every regulation or order made under this Act (other than regulations made under section 9 (2) or 9 (3) of this Act) shall be laid before each House of the Oireachtas as soon as may be after it is made, and if a resolution is passed by either House of the Oireachtas within the next twenty-one days on which that House has sat after the regulation or order is laid before it annulling the regulation or order, the regulation or order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Expenses.

18.—The expenses incurred by the Minister in the administration of this Act shall, to such extent as may be sanctioned by the Minister for Finance, be paid out of moneys provided by the Oireachtas.

Commencement.

19.—This Act shall come into operation on such day or days as may be fixed by order or orders of the Minister, either generally or with reference to a particular provision, and different days may be so fixed for different provisions of this Act.

Short title.

20.—This Act may be cited as the Health Contributions Act, 1979.