Finance Act, 1995

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

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

(a) in paragraph (a) of subsection (2A) (inserted by the Act of 1978) by the insertion of the following proviso to that paragraph:

“Provided that, where supplies of the kind referred to in, subject to subsection (3E), paragraph (xxiii) of the First Schedule or in paragraph (viic) of the Sixth Schedule are provided by the State or by a local authority, an order under this subsection shall be deemed to have been made in respect of such supplies by the State or by the local authority.”,

and

(b) by the insertion of the following subsection after subsection (3D) (inserted by the European Communities (Value-Added Tax) Regulations, 1992 ( S.I. No. 413 of 1992 )):

“(3E) (a) Notwithstanding the provisions of section 6 (1) and of subsection (1), and subject to the provisions of subsection (3), where—

(i) a person supplies services which are exempt in accordance with section 6 and paragraph (xxiii) of the First Schedule, or

(ii) the State or a local authority supplies services of the kind referred to in paragraph (xxiii) of the First Schedule,

then an authorised officer of the Revenue Commissioners shall—

(I) where such officer is satisfied that such supply of such services has created or is likely to create a distortion of competition such as to place at a disadvantage a commercial enterprise which is a taxable person supplying similar-type services, or

(II) where such officer is satisfied that such supply of such services is managed or administered by or on behalf of another person who has a direct or indirect beneficial interest, either directly or through an intermediary, in the supply of such services,

make a determination in relation to some or all of such supplies as specified in that determination deeming—

(A) such person, the State or such local authority to be supplying such supplies as specified in that determination in the course or furtherance of business,

(B) such person, the State or such local authority to be a taxable person in relation to the provision of such supplies as specified in that determination, and

(C) such supplies as specified in that determination to be taxable supplies to which the rate specified in section 11 (1) (d) refers.

(b) Where a determination is made under paragraph (a), the Revenue Commissioners shall, as soon as may be after the making thereof, issue a notice in writing of that determination to the party concerned, and such determination shall have effect from such date as may be specified in the notice of that determination:

Provided that such determination shall have effect no sooner than the start of the next taxable period following that in which the notice issued.

(c) Where an authorised officer is satisfied that the conditions that gave rise to the making of a determination under paragraph (a) no longer apply, that officer shall cancel that determination by notice in writing to the party concerned and that cancellation shall have effect from the start of the next taxable period following that in which the notice issued.

(d) In this subsection ‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing for the purposes of this subsection.”.