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Amendment of section 4B (supplies of immovable goods) of Principal Act.
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114.— Section 4B of the Principal Act is amended—
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(a) by substituting the following for subsection (5):
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“(5) Subject to subsection (8), where a taxable person who carries on a business in the State supplies immovable goods to another taxable person who carries on a business in the State in circumstances where that supply would otherwise be exempted because of subsection (2) of this section, or section 4C(2) or (6)(b), then, despite those provisions, tax is chargeable on that supply, but only if the supplier and the taxable person to whom the supply is made have, no later than the 15th day of the month after the month during which the supply occurred, entered into an agreement in writing to opt to have tax chargeable on that supply (in this Act referred to as a ‘joint option for taxation’).”,
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and
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(b) by inserting the following after subsection (6):
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“(6A) (a) In this subsection—
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‘owner’ means the accountable person referred to in section 3(7);
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‘purchaser’ means the person to whom the immovable goods that are referred to in paragraph (b) are supplied;
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‘vendor’ means the person referred to in section 3(7), not being the accountable person referred to in that section, who disposes of the immovable goods that are referred to in paragraph (b).
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(b) Where a supply of immovable goods is a supply to which section 3(7) applies and such supply would otherwise be exempted because of subsection (2) of this section, or subsection (2) or (6)(b) of section 4C, then, despite those provisions, tax is chargeable on that supply, where—
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(i) the purchaser is a taxable person, and
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(ii) the vendor and the purchaser have, no later than the 15th day of the month after the month during which the supply occurred, entered into an agreement in writing to opt to have tax chargeable on that supply.
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(c) Where paragraph (b) applies—
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(i) the purchaser shall, in relation to that supply, be an accountable person and shall be liable to pay the tax chargeable on that supply as if that purchaser supplied those goods,
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(ii) neither the vendor nor the owner shall be accountable for or liable to pay that tax, and
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(iii) sections 9(2A) and 19(3)(b) shall not apply.
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(d) Paragraph (b) shall not apply where the purchaser is a person connected (within the meaning of section 7A(3)) with either the vendor or the owner.
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(e) Where a supply of immovable goods is a supply to which section 3(7) applies and that supply would otherwise be exempted because of subsection (2) then, despite that provision, tax is chargeable on that supply, where—
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(i) the immovable goods are buildings designed as or capable of being used as a dwelling,
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(ii) the owner is a person who developed those immovable goods in the course of a business of developing immovable goods or is a person connected with that person within the meaning of section 7A(3), and
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(iii) the owner was entitled to a deduction under section 12 for tax chargeable to that person in respect of that owner’s acquisition or development of those immovable goods.”.
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