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Finance Act 2003

Time limits for capital acquisitions tax.

145.—(1) The Principal Act is amended—

(a) in section 18, by deleting subsection (5),

(b) in section 46, by inserting the following after subsection (7):

“(7A) The making of enquiries by the Commissioners for the purposes of subsection (7)(a) or the authorising of inspections by the Commissioners under subsection (7)(b) in connection with or in relation to a relevant return (within the meaning given in section 49(6A)(b)) may not be initiated after the expiry of 4 years commencing on the date that the relevant return is received by the Commissioners.

(7B) (a) The time limit referred to in subsection (7A) shall not apply where the Commissioners have reasonable grounds for believing that any form of fraud or neglect has been committed by or on behalf of any accountable person in connection with or in relation to any relevant return which is the subject of any enquiries or inspections.

(b) In this subsection ‘neglect’ means negligence or a failure to deliver a correct relevant return (within the meaning given in section 49(6A)(b)).”,

(c) in section 49, by inserting the following after subsection (6):

“(6A) (a) For the purposes of subsection (6) an assessment, a correcting assessment or an additional assessment made in connection with or in relation to a relevant return may not be made after the expiry of 4 years from the date that the relevant return is received by the Commissioners.

(b) In this subsection ‘relevant return’ means a return within the meaning of section 21(e) or a return or an additional return within the meaning of section 46.

(6B) The time limit referred to in subsection (6A) shall not apply where the Commissioners have reasonable grounds for believing that any form of fraud or neglect (within the meaning given in section 46(7B)(b)) has been committed by or on behalf of any accountable person in connection with or in relation to any relevant return (within the meaning given in subsection (6A)) which is the subject of assessment.”,

and

(d) by substituting the following for section 57:

“Overpayment of tax.

57.—(1) In this section—

‘relevant date’, in relation to a repayment of tax means—

(a) the date which is 183 days after the date on which a valid claim in respect of the repayment is made to the Commissioners, or

(b) where the repayment is due to a mistaken assumption in the operation of the tax on the part of the Commissioners, the date which is the date of the payment of the tax which has given rise to that repayment;

‘repayment’ means a repayment of tax including a repayment of—

(a) any interest charged,

(b) any surcharge imposed,

(c) any penalty incurred,

under any provision of this Act in relation to tax;

‘tax’ includes interest charged, a surcharge imposed or a penalty incurred under any provision of this Act.

(2) Where, a claim for repayment of tax made to the Commissioners, is a valid claim, the Commissioners shall, subject to the provisions of this section, give relief by means of repayment of the excess or otherwise as is reasonable and just.

(3) Notwithstanding subsection (2), no tax shall be repaid to an accountable person in respect of a valid claim unless that valid claim is made within the period of 4 years commencing on the later of the valuation date or the date of the payment of the tax concerned.

(4) Subsection (3) shall not apply to a claim for repayment of tax arising by virtue of section 18(3), Article VI of the First Schedule to the Finance Act 1950 , or Article 9 of the Schedule to the Double Taxation Relief (Taxes on Estates of Deceased Persons and Inheritances and on Gifts) (United Kingdom) Order 1978 ( S.I. No. 279 of 1978 ).

(5) Subsection (3) shall not apply to a claim for repayment of tax arising on or before the date of the passing of the Finance Act 2003, where a valid claim is made on or before 31 December 2004.

(6) Subject to the provisions of this section, where a person is entitled to a repayment, the amount of the repayment shall, subject to a valid claim in respect of the repayment being made to the Commissioners and subject to section 1006A(2A) of the Taxes Consolidation Act 1997 , carry simple interest at the rate of 0.011 per cent, or such other rate (if any) prescribed by the Minister for Finance by order under subsection (11), for each day or part of a day for the period commencing on the relevant date and ending on the date upon which the repayment is made.

(7) A claim for repayment under this section shall only be treated as a valid claim when—

(a) it has been made in accordance with the provisions of the law (if any) relating to tax under which such claim is made, and

(b) all information which the Commissioners may reasonably require to enable them determine if and to what extent a repayment is due, has been furnished to them.

(8) Interest shall not be payable under this section if it amounts to €10 or less.

(9) This section shall not apply in relation to any repayment or part of a repayment of tax in respect of which interest is payable under or by virtue of any provision of any other enactment.

(10) Income tax shall not be deductible on any payment of interest under this section and such interest shall not be reckoned in computing income for the purposes of the Tax Acts.

(11) (a) The Minister for Finance may, from time to time, make an order prescribing a rate for the purposes of subsection (6).

(b) Every order made by the Minister for Finance under paragraph (a) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done under it.

(12) The Commissioners may make regulations as they deem necessary in relation to the operation of this section.”.

(2) This section shall come into operation on such day or days as the Minister for Finance may by order or orders appoint either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.