Finance Act, 1992

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Returns in relation to foreign accounts.

230.—(1) In this section—

“appropriate inspector”, in relation to an intermediary or, as may be appropriate, a resident, means—

(a) the inspector who has last given notice in writing to the intermediary or, as the case may be, the resident that he is the inspector to whom the intermediary or, as the case may be, the resident is required to deliver a return or statement of income or profits,

(b) where there is no such inspector as is referred to in paragraph (a), the inspector to whom it is customary for the intermediary or, as the case may be, the resident to deliver such return or statement, or

(c) where there is no such inspector as is referred to in paragraphs (a) and (b), the inspector of returns specified in section 9 of the Finance Act, 1988 ;

“chargeable period” has the same meaning as in paragraph 1 of the First Schedule to the Corporation Tax Act, 1976 ;

“deposit” means a sum of money paid to a person on terms under which it will be repaid with or without interest and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person to whom it is made;

“foreign account” means an account in which a deposit is held at a location outside the State;

“intermediary” means any person carrying on in the State a trade or business in the ordinary course of the operations of which he provides a relevant service;

“relevant chargeable period” means—

(a) where the chargeable period is a year of assessment, the year 1992-93 and any subsequent year of assessment, or

(b) where the chargeable period is an accounting period of a company, an accounting period ending on or after the 1st day of June, 1992;

“relevant person” means a person who in the normal course of his trade or business receives or holds deposits;

“relevant service” means the acting in the State as an intermediary in or in connection with the opening of foreign accounts with relevant persons by or on behalf of residents;

“resident” means a person resident in the State;

“specified return date for the chargeable period”, in relation to a relevant chargeable period, means—

(a) where the chargeable period is a year of assessment, the 31st day of January in the year of assessment following that year, and

(b) where the chargeable period is an accounting period of a company, the last day of the period of 9 months commencing on the day immediately following the end of the accounting period;

“tax reference number”, in relation to a resident, has the same meaning as is assigned to it in section 22 of the Finance Act, 1983 , in relation to a specified person within the meaning of that section.

(2) Every intermediary shall, as respects a relevant chargeable period, prepare and deliver to the appropriate inspector, on or before the specified return date for the said chargeable period, a return specifying, in respect of every resident in respect of whom he has acted in the chargeable period as an intermediary in the opening of a foreign account—

(a) the full name and permanent address of the resident,

(b) the resident's tax reference number,

(c) the full name and address of the relevant person with whom the foreign account was opened,

(d) the date on which the foreign account was opened, and

(e) the amount of the deposit made in opening the foreign account.

(3) Where a resident requests an intermediary to provide him with a relevant service he shall furnish to the intermediary the details which the intermediary is required to include in the return to the appropriate inspector in accordance with subsection (2) and the intermediary shall take all reasonable care (including, where necessary, the requesting of documentary evidence) to confirm that the details furnished are true and correct.

(4) (a) Where an intermediary fails—

(i) for any relevant chargeable period, to make a return required to be made by him in accordance with subsection (2),

(ii) to include in such a return for a relevant chargeable period details of any resident to whom he provided a relevant service in that chargeable period, or

(iii) to take reasonable care to confirm the details of the kind referred to in subsection (2) furnished to him by a resident to whom he has provided a relevant service in a relevant chargeable period,

he shall, in respect of each such failure, be liable to a penalty of £2,000.

(b) Where a resident fails—

(i) to furnish details of the kind referred to in subsection (2) to an intermediary who has provided him with a relevant service, or

(ii) knowingly or wilfully furnishes that intermediary with incorrect details of the said kind,

he shall be liable to a penalty of £2,000.

(5) All penalties under subsection (4) may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any fine or penalty under any Act relating to the excise.

(6) Where, in a relevant chargeable period, a resident opens, either directly or indirectly, a foreign account, or causes to be opened a foreign account in relation to which he is the beneficial owner of the deposit held in that account, he shall, notwithstanding anything to the contrary in section 48 of the Finance Act, 1986 , or section 9 of the Finance Act, 1988 , be deemed, for that relevant chargeable period, to be a chargeable person for the purposes of section 48 of the Finance Act, 1986 , and section 10 of the Finance Act, 1988 , and the return of income (within the meaning of the said section 48) to be delivered by him for that chargeable period shall include the following particulars in relation to the account, that is to say—

(a) the name and address of the relevant person with whom the account was opened,

(b) the date on which the account was opened,

(c) the amount of the deposit made in opening the account, and

(d) the name and address of the intermediary, if any, who provided a relevant service in relation to the opening of the account.

(7) This section shall apply and have effect as respects foreign accounts opened on or after the 1st day of June, 1992.