Finance Act 2014
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Joint and several liability for tax | ||
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69. (1) The Principal Act is amended by inserting the following after section 108B, which is inserted by section 68 : | ||
“Joint and several liability for tax | ||
108C. (1) In this section— | ||
‘first accountable person’ means the person who, in relation to any taxable supply of goods or services or intra-Community acquisition of goods chargeable to tax in accordance with section 3(a), (c), (d) or (e) is, apart from this section, liable to pay the tax chargeable in accordance with Chapter 3 of Part 9; | ||
‘second accountable person’ means a person, other than the first accountable person, who participates as a purchaser or as a supplier in a series of taxable supplies; | ||
‘series of taxable supplies’ means a supply of taxable goods or services made or received by an accountable person and any previous or subsequent supply of those taxable goods or services made or received by other accountable persons and includes intra-Community acquisitions of goods. | ||
(2) Where, in relation to a particular series of taxable supplies— | ||
(a) at the time a supply or intra-Community acquisition (forming part of that series) was made, the second accountable person knows that, or is reckless as to whether or not, that supply of goods or services or intra-Community acquisition is connected to the fraudulent evasion of tax, and | ||
(b) in respect of a taxable period, some or all of the tax due and payable in relation to the supply or intra-Community acquisition has not been remitted to the Collector-General by the first accountable person, | ||
the second accountable person is jointly and severally liable with the first accountable person for the tax due and payable on that supply or intra-Community acquisition in accordance with subsection (3) and shall be liable to pay that tax as if it were tax due and payable by the second accountable person in accordance with Chapter 3 of Part 9. | ||
(3) The amount of tax for which the second accountable person is held, as referred to in subsection (2), jointly and severally liable shall, for each taxable supply of goods or services or intra-Community acquisition, be calculated in accordance with the following formula— | ||
A - B | ||
where— | ||
A is the tax payable by the first accountable person on that taxable supply of goods or services, or intra-Community acquisition under section 3(a), (c), (d) or (e), and | ||
B is the amount of tax, if any, which may be deductible in accordance with section 59(2) by the first accountable person, provided that the aforementioned deductible tax is directly attributable to the acquiring of those goods and services which give rise to the charge to tax payable by the first accountable person. | ||
(4) Where, in relation to any period, the Revenue Commissioners or such officer as the Revenue Commissioners may authorise, have reason to believe that an amount of tax is due and payable to the Commissioners in accordance with this section, they shall serve a notice in writing on the second accountable person, specifying— | ||
(a) that the second accountable person is jointly and severally liable, in accordance with this section, for tax that has not been remitted, | ||
(b) the amount of tax due and payable by the second accountable person, and | ||
(c) the name and address of any accountable person, with whom the second accountable person is jointly and severally liable in accordance with this section.”. | ||
(2) The Principal Act is further amended— | ||
(a) in section 5(1)(b) by substituting “sections 9, 10, 12, 15, 17(1), 94(3) and 108C” for “sections 9, 10, 12, 15, 17(1) and 94(3) ”, | ||
(b) in section 111(1)(a) by inserting “, including tax (if any) payable in accordance with section 108C(3),” after “payable by the person”, | ||
(c) in section 111(1)(i)(I), by inserting “, including tax (if any) payable in accordance with section 108C(3),” after “the total amount of tax”, | ||
(d) in section 115 by substituting the following for subsection (1) — | ||
“(1) (a) A person who does not comply with section 64(10)(c)(i), 64(12), 65(3), 86(1), 95(9)(a) or 124(7)(a) or Chapter 2, 3, 6 or 7 of Part 9 or any provision of regulations in regard to any matter to which those sections or Chapters relate shall be liable to a penalty of €4,000. | ||
(b) Paragraph (a) shall not apply to a person, being the second accountable person (as defined in section 108C), where— | ||
(i) that person is jointly and severally liable by virtue of section 108C, and | ||
(ii) the penalty which would otherwise arise under paragraph (a) only relates to the tax for which that person is jointly and severally liable by virtue of that section.”, | ||
and | ||
(e) in section 116, by inserting the following after subsection (1) — | ||
“(1A) This section shall not apply to a person, being the second accountable person (as defined in section 108C), where— | ||
(a) that person is jointly and severally liable by virtue of section 108C, and | ||
(b) the penalty which would otherwise arise under this section only relates to the tax for which that person is jointly and severally liable by virtue of section 108C.”. |