Finance Act 2010
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Domicile levy. |
150.— (1) The Principal Act is amended by inserting the following Part after Part 18B: | |
“PART 18C | ||
Domicile Levy | ||
Interpretation (Part 18C). | ||
531AA.— (1) In this Part— | ||
‘close company ’ has the meaning assigned to it by section 430; | ||
‘discretionary trust’ means any disposition whereby, or by virtue or in consequence of which, property is held on trust to apply, or with a power to apply, the income or capital or part of the income or capital of the property for the benefit of any person or persons or of any one or more of a number or of a class of persons whether at the discretion of trustees or any other person and notwithstanding that there may be a power to accumulate all or any part of the income and for the purposes of this definition ‘disposition’ includes any disposition whether by deed or otherwise and any covenant, agreement or arrangement whether effected with or without writing; | ||
‘domicile levy’ has the meaning assigned to it by section 531AB; | ||
‘final decision’ means a decision against which no appeal lies or against which an appeal lies within a period which has expired without an appeal having been brought; | ||
‘foundation’ means any legal entity, wherever established, to which an individual disposes of, or transfers, property, irrespective of— | ||
(a) how that entity is described in the place of establishment, and | ||
(b) the name by which that entity is called in the place of establishment; | ||
‘holding company’ and ‘subsidiary’ have the same meanings as in section 155 of the Companies Act 1963 ; | ||
‘ Irish property ’, in relation to an individual and a valuation date, means all property, situate in the State, to which the individual is beneficially entitled in possession on the valuation date, but does not include— | ||
(a) shares in a company which exists wholly or mainly for the purpose of carrying on a trade or trades, | ||
(b) shares in a holding company which derive the greater part of their value from subsidiaries which wholly or mainly carry on a trade or trades; | ||
‘liability to income tax’, in relation to an individual and a tax year, means the amount of income tax due and payable by the individual for the tax year in accordance with the Tax Acts and in respect of which a final decision has been made; | ||
‘ market value ’, in relation to property, means the price which such property would fetch if sold on the open market on the valuation date in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the property; | ||
‘minor child’ means a child who has not attained the age of 18 years and is not and has not been married; | ||
‘property’ includes rights and interests of every description; | ||
‘relevant individual’, in relation to a tax year, means an individual— | ||
(a) who is domiciled in, and is a citizen of, the State in the tax year, | ||
(b) whose world-wide income for the tax year is more than €1,000,000, | ||
(c) whose liability to income tax in the State for the tax year is less than €200,000, and | ||
(d) the market value of whose Irish property on the valuation date in the tax year is in excess of €5,000,000; | ||
‘return’ means such a return as is referred to in section 531AF; | ||
‘tax year’ means a year of assessment for income tax purposes; | ||
‘world-wide income’, in relation to an individual, means the individual’s income, without regard to any amount deductible from or deductible in computing total income, from all sources as estimated in accordance with the Tax Acts and as if any provision of those Acts providing for any income, profits or gains to be exempt from income tax or to be disregarded or not reckoned for the purposes of income tax or of those Acts were never enacted, and— | ||
(a) without regard to any deduction— | ||
(i) in respect of double rent allowance under section 324(2), 333(2), 345(3) or 354(3), | ||
(ii) under section 372AP, in computing the amount of a surplus or deficiency in respect of rent from any premises, | ||
(iii) under section 372AU, in computing the amount of a surplus or deficiency in respect of rent from any premises, | ||
(iv) under section 847A, in respect of a relevant donation (within the meaning of that section), | ||
(v) under section 848A, in respect of a relevant donation (within the meaning of that section), | ||
and | ||
(b) having regard to a deduction for— | ||
(i) any payment to which section 1025 applies made by an individual pursuant to a maintenance arrangement (within the meaning of that section) relating to the marriage for the benefit of the other party to the marriage, unless section 1026 applies in respect of such payment, or | ||
(ii) a payment of a similar nature to a payment referred to in subparagraph (i) pursuant to a maintenance arrangement (within the meaning of section 1025) relating to the marriage for the benefit of the other party to the marriage which attracts substantially the same tax treatment as such a payment, | ||
determined on the basis that the individual, if not otherwise resident in the State for the year, was resident in the State for the tax year; | ||
‘valuation date’, in relation to a tax year, means 31 December in that year. | ||
(2) Subject to subsection (3), for the purposes of the definition of ‘ Irish property’ in subsection (1), an individual shall be deemed to be beneficially entitled in possession on the valuation date to— | ||
(a) all property situate in the State which the individual has transferred to his or her spouse or minor children, for less than market value, on or after 18 February 2010, | ||
(b) all property situate in the State which the individual has disposed of, or transferred, to a discretionary trust, for less than market value, on or after 18 February 2010, and | ||
(c) all property situate in the State which the individual has disposed of, or transferred, to a foundation, for less than market value, on or after 18 February 2010. | ||
(3) (a) Subsection (2)(a) shall not apply to a maintenance arrangement (within the meaning of section 1025). | ||
(b) Subsection (2)(b) and (c) shall not apply to a discretionary trust or a foundation, as the case may be, which is shown, to the satisfaction of the Revenue Commissioners, to have been created exclusively― | ||
(i) for purposes which, in accordance with the law of the State, are charitable, or | ||
(ii) for the benefit of one or more named individuals and for the reason that such individual, or all such individuals, is or are, because of age or improvidence, or of physical, mental or legal incapacity, incapable of managing that individual’s or those individuals’ affairs. | ||
(4) For the purposes of this Part, where the whole or the greater part of the market value of any share in a company incorporated outside the State that would be a close company if it were incorporated in the State is attributable, directly or indirectly, to property situate in the State, that share shall be deemed to be property situate in the State. | ||
(5) In estimating the market value of any property for the purposes of this Part, no deduction shall be made from the market value for any debts or encumbrances. | ||
(6) References in this Part to the Revenue Commissioners shall be construed as including references to any of their officers. | ||
Charge to domicile levy. | ||
531AB.— Subject to this Part, with effect from 1 January 2010 a levy, to be known as ‘domicile levy’, shall be charged, levied and paid annually by every relevant individual and the amount of such levy shall be €200,000. | ||
Credit for income tax paid. | ||
531AC.— A relevant individual’s liability to income tax for a tax year shall be allowable as a credit in arriving at the amount of domicile levy chargeable for that year, but only to the extent that such income tax has been paid at the same time as, or before, domicile levy for that year is paid. | ||
Valuation procedures. | ||
531AD.— (1) If the Revenue Commissioners are not satisfied with the market value of property estimated in a return, or if they consider it necessary to do so, they may estimate the value of that property and, where the market value as so estimated by the Revenue Commissioners exceeds the market value estimated in the return, any charge to tax shall be made by reference to the market value estimated by the Revenue Commissioners and not by reference to the market value estimated in the return. | ||
(2) The market value of any property for the purposes of subsection (1) shall be ascertained by the Revenue Commissioners in such manner and by such means as they think fit and they may authorise a person suitably qualified for that purpose to inspect any property and report to them the value of such property for the purposes of this Part and the person having custody or possession of that property shall permit the person so authorised to inspect it at such reasonable times as the Revenue Commissioners consider necessary. | ||
(3) Where the Revenue Commissioners require a valuation to be made by a person authorised by them for the purposes of subsection (2) the costs of such valuation shall be defrayed by the Revenue Commissioners. | ||
Appeals regarding value of real property. | ||
531AE.— If a relevant individual is aggrieved by a decision of the Revenue Commissioners as to the market value of any real property, the individual may appeal against the decision in the manner prescribed by section 33 of the Finance (1909-10) Act 1910 , and the provisions as to appeals under that section shall apply accordingly with any necessary modifications. | ||
Delivery of returns. | ||
531AF.— (1) A relevant individual shall, as respects a tax year, on or before 31 October in the year after the valuation date, prepare and deliver to the Revenue Commissioners a full and true return, together with the payment of domicile levy, of all such matters and particulars in relation to the determination of liability to domicile levy as the Revenue Commissioners may require. | ||
(2) A return under this section shall— | ||
(a) be in such form as the Revenue Commissioners may require, | ||
(b) be signed by the relevant individual, and | ||
(c) include a declaration by the individual who signed the return that the return is, to the best of that individual’s knowledge, information and belief, correct and complete. | ||
Opinion of Revenue Commissioners. | ||
531AG.— (1) On an application to the Revenue Commissioners by an individual who is considering the making of a significant investment in the State, they may give an opinion to the individual as to whether or not, in the tax year in which the application is made, the individual would be likely to be regarded as an individual to whom paragraph (a) of the definition of ‘ relevant individual ’ in section 531AA(1) applies. | ||
(2) An application for an opinion under subsection (1) shall be in such form and contain such information and particulars as the Revenue Commissioners may require in relation to such an application. | ||
(3) Nothing in this section shall be construed as obliging the Revenue Commissioners to give the opinion referred to in subsection (1). | ||
Making and amending of assessments by Revenue Commissioners. | ||
531AH.— (1) Where— | ||
(a) a return under section 531AF(1) is not delivered to the Revenue Commissioners by an individual on or before 31 October in the year following the valuation date, or | ||
(b) the Revenue Commissioners are dissatisfied with a return delivered to them under section 531AF(1), | ||
the Revenue Commissioners may make an assessment or an amending assessment upon an individual who they have reason to believe is chargeable to domicile levy on the basis that the individual is a relevant individual. | ||
(2) The Revenue Commissioners may withdraw an assessment made under subsection (1) and make an assessment of the amount of domicile levy payable on the basis of a return which, in their opinion, represents reasonable compliance with their requirements and which is delivered to them within 30 days after the date of the assessment made by them pursuant to subsection (1). | ||
Right of Revenue Commissioners to make enquiries and amend assessments. | ||
531AI.— (1) Section 956 shall apply, with any necessary modifications, for the purposes of this Part as it applies for the purposes of income tax. | ||
(2) For the purposes of making an enquiry or taking such actions, as referred to in section 956 or for the purposes of making, amending or further amending an assessment on an individual in relation to domicile levy, the Revenue Commissioners shall have all such powers as an inspector would have under that section in relation to making enquiries or taking such actions as he or she considers necessary to satisfy himself or herself as to the accuracy or otherwise of any statement or particular contained in a return delivered for the purposes of income tax. | ||
Application of provisions relating to income tax. | ||
531AJ.— (1) The provisions of Chapter 1 of Part 40, in relation to appeals, shall apply to domicile levy as they apply to income tax. | ||
(2) Chapter 1 of Part 47 shall apply to domicile levy as it applies to income tax. | ||
(3) Section 1080 shall apply to domicile levy as it applies to income tax. | ||
Care and management. | ||
531AK.— Domicile levy is under the care and management of the Revenue Commissioners and Part 37 applies to domicile levy as it applies to income tax.”. | ||
(2) (a) Section 960A of the Principal Act is amended by substituting the following for paragraph (g) of the definition of “Acts”: | ||
“(g) Parts 18A, 18B and 18C,”. | ||
(b) Section 1002(1)(a) of the Principal Act is amended by substituting the following for subparagraph (iiia) of the definition of “the Acts”: | ||
“(iiia) Parts 18A and 18C,”. | ||
(c) Section 1077A(1) of the Principal Act is amended by substituting the following for paragraph (c) of the definition of “the Acts”: | ||
“(c) Parts 18A, 18B and 18C,”. | ||
(d) Section 1078(1) of the Principal Act is amended by substituting the following for paragraph (ca) of the definition of “the Acts”: | ||
“(ca) Parts 18A and 18C,”. | ||
(3) This section shall apply for the year of assessment 2010 and subsequent years. |