Finance (No. 2) Act 2013

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Further levy on certain financial institutions

72. The Principal Act is amended by inserting the following section after section 126A:

“126AA. (1) In this section—

‘appropriate tax’ has the meaning assigned to it by section 256 of the Taxes Consolidation Act 1997 ;

‘assessable amount’, in relation to a relevant person, means the relevant retention tax in relation to the person;

‘relevant business’ means the business of a relevant person of taking and holding relevant deposits (within the meaning of section 256 of the Taxes Consolidation Act 1997 ) in respect of which the person was obliged to pay any amount under section 258 or 259 of the Taxes Consolidation Act 1997 ;

‘due date’ means—

(a) in respect of the year 2014, 20 October 2014,

(b) in respect of the year 2015, 20 October 2015, and

(c) in respect of the year 2016, 20 October 2016;

‘relevant person’ means—

(a) a person who, in the year 2011, was a holder of a licence granted under section 9 of the Central Bank Act 1971 or held a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under that section, or

(b) a person who, in the year 2011, was a building society within the meaning of the Building Societies Act 1989 or a society established in accordance with the law of any other Member State of the European Communities which corresponds to that Act,

and the person—

(i) was obliged, in the year 2011, to pay—

(I) appropriate tax under section 258(3) of the Taxes Consolidation Act 1997 , or

(II) an amount on account of appropriate tax under section 258(4) or 259(4) of that Act,

and

(ii) is carrying on a trade or business in the State (whether including a relevant business or not),

but a person shall not be regarded as a relevant person where the relevant retention tax in relation to the person in the year 2011 did not exceed €100,000;

‘relevant retention tax’, in relation to a relevant person, means an amount determined by the formula—

A + B - C

where—

A is an amount equal to the aggregate of—

(a) appropriate tax paid by the person in the year 2011 under section 258 (3) of the Taxes Consolidation Act 1997 , and

(b) the amount paid by the person in the year 2011 on account of appropriate tax under section 258(4) or 259(4) of that Act,

B is the aggregate of any amounts of appropriate tax, or any amounts on account of appropriate tax, paid by the person after the year 2011 which, in accordance with section 258 or 259 of that Act, should have been paid by the person in the year 2011, and

C is the aggregate of any amounts of appropriate tax paid by the person in the year 2011 which—

(a) are included in A, and

(b) were agreed by the person and an officer of the Commissioners at or before the time of payment as being tax which, in accordance with the said section 258, should have been paid before the year 2011;

‘year 2011’ means the period of 12 months ending on 31 December 2011.

(2) A relevant person shall for each of the years 2014, 2015 and 2016, not later than the due date in respect of that year, deliver to the Commissioners a statement in writing showing the assessable amount for that person.

(3) Where at any time in a period commencing on 1 January 2011 and ending immediately before a due date—

(a) a relevant person ceased to carry on a relevant business, and

(b) another person (in this section referred to as the ‘successor person’) acquired the whole, or substantially the whole, of the relevant business,

the relevant person shall not be required to deliver a statement on the due date in accordance with subsection (2) but the successor person shall—

(i) where the successor person is, apart from this subsection, required to deliver a statement on the due date in accordance with subsection (2), increase the assessable amount in that statement by the assessable amount in relation to the relevant person, and

(ii) in any other case, deliver a statement on the due date in accordance with subsection (2) as if the successor person were the relevant person.

(4) Where at any time in a period commencing at the time at which a successor person acquired the whole, or substantially the whole, of a relevant business from the relevant person referred to in subsection (3) such that that subsection applies to the successor person and ending immediately before a due date—

(a) the successor person ceased to carry on the relevant business so acquired, and

(b) another person (in this section referred to as the ‘next successor person’) acquired the whole, or substantially the whole, of the relevant business,

the successor person shall not be required to deliver a statement on the due date in accordance with subsection (3) but the next successor person shall—

(i) where the next successor person is, apart from this subsection, required to deliver a statement on the due date in accordance with subsection (2), increase the assessable amount in that statement by the assessable amount in relation to the relevant person, and

(ii) in any other case, deliver a statement on the due date in accordance with subsection (2) as if the next successor person were the relevant person.

(5) Where at any time in a period commencing at the time at which a next successor person acquired the whole, or substantially the whole, of a relevant business such that that person was required—

(a) to increase an assessable amount by an assessable amount in relation to a relevant person, or

(b) to deliver a statement as if the next successor person were a relevant person,

and ending immediately before a due date—

(i) the next successor person ceased to carry on the relevant business so acquired, and

(ii) another person (in this section referred to as the ‘further successor person’) acquired the whole, or substantially the whole, of the relevant business,

the next successor person shall not be required to deliver a statement on the due date in accordance with subsection (4) but the further successor person shall—

(I) where the further successor person is, apart from this subsection, required to deliver a statement on the due date in accordance with subsection (2), increase the assessable amount in that statement by the assessable amount in relation to the relevant person, and

(II) in any other case, deliver a statement on the due date in accordance with subsection (2) as if the further successor person were the relevant person,

and so on for further successions.

(6) There shall be charged on any statement delivered in accordance with subsection (2) a stamp duty of an amount equal to 35 per cent of the assessable amount.

(7) The stamp duty charged by subsection (6) upon a statement delivered by a relevant person in accordance with subsection (2) shall be paid by that person upon delivery of the statement.

(8) There shall be furnished to the Commissioners by a relevant person such particulars as the Commissioners may require in relation to any statement required by this section to be delivered by the person.

(9) In the case of failure by a relevant person—

(a) to deliver any statement required to be delivered by that person under subsection (2), or

(b) to pay the stamp duty chargeable on any such statement,

on or before the due date in respect of the year concerned, the person shall, from the due date concerned until the day on which the stamp duty is paid, be liable to pay, in addition to the stamp duty, interest on the stamp duty, calculated in accordance with section 159D and also from 20 October of the year in which the statement is to be delivered in accordance with subsection (2), by way of penalty, a sum of €380 for each day the stamp duty remains unpaid.

(10) The delivery of any statement required by subsection (2) may be enforced by the Commissioners under section 47 of the Succession Duty Act 1853 , in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(11) The stamp duty, interest on the stamp duty and any penalty due under subsection (9) charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty payable by the relevant person which is under the care and management of the Commissioners.”.