Finance Act 2005
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Amendment of Chapter 3A (Implementation of Council Directive 2003/48/EC of 3 June 2003 on Taxation of Savings Income in the Form of Interest Payments and Related Matters) of Part 38 of Taxes Consolidation Act 1997. |
144.—(1) Chapter 3A (Implementation of Council Directive 2003/48/EC of 3 June 2003 on Taxation of Savings Income in the Form of Interest Payments and Related Matters) of Part 38 of the Taxes Consolidation Act 1997 is amended— | |
(a) in section 898B(1) by substituting the following definition for the definition of “the Directive”: | ||
“ ‘the Directive’ means Council Directive 2003/48/EC of 3 June 20031 as amended;”, | ||
(b) in sections 898F(5)(c) and 898G(6)(c) by substituting “1 July 2005” for “1 January 2005”, | ||
(c) in section 898G(3)(a)(iii) by substituting “territory” for “relevant territory”, | ||
(d) in section 898H— | ||
(i) by substituting the following for the matter immediately preceding paragraph (a) in subsection (1): | ||
“Every paying agent shall, as respects an interest payment made for the immediate benefit of a beneficial owner on or after 1 July 2005 who is resident in a relevant territory, make and deliver to the Revenue Commissioners within 3 months of the end of a tax year (being the tax year 2005 and subsequent years) a return of all interest payments, as respects the tax year 2005, so made during the period 1 July 2005 to 31 December 2005 by that paying agent and, as respects any other tax year, so made by that paying agent during that year consisting of—”, | ||
and | ||
(ii) by substituting the following for paragraph (b) of subsection (4): | ||
“(b) (i) (I) the total amount of interest payments which are within the meaning of paragraphs (a), (b), (c), (d), (e) and (g) of subsection (1) of section 898E, and | ||
(II) the total amount of interest payments which are within the meaning of paragraphs (f) and (h) of that subsection, | ||
or | ||
(ii) in a case where the paying agent is a residual entity— | ||
(I) the total amount of deemed interest payments which are within the meaning of paragraphs (a), (b), (c), (d), (e) and (g) of subsection (1) of section 898E, and | ||
(II) the total amount of deemed interest payments which are within the meaning of paragraphs (f) and (h) of that subsection.”, | ||
(e) in section 898I by substituting the following for paragraph (c): | ||
“(c) the total amount of the interest payments so made or so secured by it in the tax year (and for this purpose the tax year 2005 shall be deemed to begin on 1 July 2005 and end on 31 December 2005).”, | ||
(f) by substituting the following for subsections (1) to (3) of section 898M— | ||
“(1) Subject to subsections (3) and (4), where tax has been deducted from an interest payment in a relevant territory under provisions applicable in such territory in accordance with the Directive or the arrangements and— | ||
(a) the interest payment is, or but for an exemption or relief from tax would be, taken into account in computing the total income of an individual for the tax year in which the tax was deducted for the purposes of income tax, and | ||
(b) the individual is resident in the State for that tax year, | ||
then— | ||
(i) the individual may claim a credit for the tax deducted from the payment against any income tax chargeable on that individual for that year and, in determining the amount of tax payable on the individual's total income for that year, credit shall be given for the tax deducted from the interest payment and the amount of the credit shall be the amount of tax deducted from the interest payment, and | ||
(ii) where— | ||
(I) the tax deducted from the interest payment exceeds any such income tax chargeable, the excess shall be repaid, or | ||
(II) no such income tax is chargeable, an amount equal to the tax deducted from the interest payment shall be repaid to the individual. | ||
(2) Subject to subsections (3) and (4), where tax has been deducted from an interest payment in a relevant territory under provisions applicable in such territory in accordance with the Directive or the arrangements and— | ||
(a) the interest payment is, or but for an exemption or relief from tax would be, taken into account in computing the chargeable gains of an individual for the tax year in which the tax was deducted for the purposes of the Capital Gains Tax Acts, and | ||
(b) the individual is resident in the State for that tax year, | ||
then— | ||
(i) the individual may claim a credit for the tax deducted from the payment against the capital gains tax chargeable on that individual for that year and, in determining the amount of tax payable on the chargeable gains of that individual for that year, credit shall be given for the tax deducted from the interest payment and the amount of the credit shall be the amount of tax deducted from the interest payment, and | ||
(ii) where— | ||
(I) the tax deducted exceeds any such capital gains tax, the excess shall be repaid to the individual, or | ||
(II) no such capital gains tax is chargeable, an amount equal to the tax deducted shall be repaid to the individual. | ||
(3) (a) The credit referred to in subsection (1) or (2), as the case may be, shall apply only after the application of any other credit to which the individual may be entitled under any arrangement made under section 826 in respect of any tax deducted from the payment under provisions other than those referred to in subsection (1) or (2). | ||
(b) Subsection (1) or (2) shall not apply where— | ||
(i) the individual referred to in the subsection concerned has obtained relief under the law of a territory outside the State in respect of tax that has been deducted from an interest payment in a relevant territory under provisions applicable in such territory in accordance with the Directive or the arrangements, and | ||
(ii) the individual was resident in that territory or was treated as being resident in that territory under arrangements made under section 826 for the year of assessment in which the tax was deducted.”, | ||
(g) in section 898O by substituting the following for subsection (1): | ||
“(1) Where any person required to make a return under this Chapter— | ||
(a) fails, without reasonable excuse, to comply with any of the requirements of section 898F or 898G, | ||
(b) makes an incorrect or incomplete return under this Chapter, or | ||
(c) fails, without reasonable excuse, to make such a return, | ||
that person shall be liable to a penalty of €19,045 and, in the case of paragraphs (a) and (c), if the failure continues that person shall be liable to a further penalty of €2,535 for each day on which the failure continues.”, | ||
(h) by substituting the following for section 898P: | ||
and | ||
(i) in section 898R by substituting— | ||
(i) “898O” for “898P” in subsection (1), | ||
(ii) the following for subsection (2): | ||
“(2) Section 898O shall apply as respects an act or omission which takes place or begins on or after the date of the passing of the Finance Act 2005.”, | ||
and | ||
(iii) “1 July 2005” for “1 January 2005” in subsection (3). | ||
(2) Section 912A(1) of the Taxes Consolidation Act 1997 is amended by substituting the following for the definition of “foreign tax”: | ||
“ ‘foreign tax’ means a tax chargeable under the laws of a territory in relation to which arrangements (in this section referred to as ‘the arrangements’) having the force of law by virtue of section 826, 898P(2) or section 106 of the Capital Acquisitions Tax Consolidation Act 2003 apply;”. | ||
(3) This section applies as on and from the date of the passing of this Act. | ||
2OJ No. L379, 24.12.2004, p. 83 |