Finance Act 2015

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Amendment of section 123B of Principal Act (cash, combined and debit cards)

64. (1) Section 123B of the Principal Act is amended—

(a) in subsection (1) —

(i) by deleting the definitions of “bank” and “building society”,

(ii) by inserting the following definitions:

“ ‘cash transaction’ means a transaction by means of which a person obtains cash from an automated teller machine situated in the State by means of a cash card or a combined card;

‘credit institution’ has the same meaning as it has in the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158 of 2014 );

‘credit union’ has the same meaning as it has in the Credit Union Acts 1997 to 2012;

‘financial institution’ has the same meaning as it has in the European Union (Capital Requirements) Regulations 2014;”,

(iii) by substituting the following for the definition of “card account”:

“ ‘card account’ means an account maintained by a promoter to which—

(a) amounts of cash obtained by a person by means of a cash card are charged, or

(b) amounts in respect of goods, services or cash obtained by a person by means of a combined card or debit card are charged;”,

(iv) in the definition of “basic payment account”, by substituting “one of the following” for “one of the following banks”,

(v) in the definition of “promoter”, by substituting “means a credit institution or a financial institution other than a credit union or An Post and any of its subsidiaries” for “means a bank or building society”, and

(vi) in the definition of “quarter”, by substituting “into a card account.” for “into a card account;”,

(b) by substituting the following for subsection (2):

“(2) A promoter shall, within one month of the end of each year, commencing with the year 2016, deliver to the Commissioners a statement in writing showing—

(a) the number of cash cards and combined cards issued at any time by the promoter that are valid on 31 December in the year,

(b) the number of cash transactions completed in the year using a card valid on 31 December in the year in respect of each type of card,

(c) the number of cash cards to which the monetary cap referred to in subsection (4) has been applied,

(d) the number of combined cards, both functions of which were used in the year, to which the monetary cap referred to in subsection (4) has been applied, and

(e) the number of combined cards, only the cash card function of which was used in the year, to which the monetary cap referred to in subsection (4) has been applied.”,

(c) by inserting the following subsection after subsection (2):

“(2A) For the purposes of subsection (2), a cash card or a combined card shall be valid on 31 December of a particular year where—

(a) the card has not expired or been cancelled before that date, and

(b) on that date, the address of the person to whom the card was issued is in the State.

(2B) A promoter shall, within one month of the end of each year, commencing with the year 2016, deliver to the Commissioners a statement in writing showing the number of each type of card to which the monetary cap referred to in subsection (4) has not been applied, together with the number of cash transactions in the year in respect of those cards.

(2C) Where a cash card or combined card issued by a promoter in respect of a card account and valid on 31 December in a particular year (in this subsection referred to as the ‘final card’) has been issued following the cancellation or expiry in that year of another card of the same type issued by the promoter in respect of the card account (in this subsection referred to as a ‘previous card’), each such previous card shall be taken to be the final card for the purposes of this section.”,

(d) by substituting the following for subsection (3):

“(3) Notwithstanding subsection (2) —

(a) if the cash card or combined card is not used at any time during a year,

(b) if the cash card or combined card is issued in respect of a card account—

(i) which is a deposit account, and

(ii) the average of the daily positive balances in the account does not exceed €12.70 during that year,

or

(c) if the cash card or combined card is issued in respect of a basic payment account,

then it shall not be included in the statement relating to that year.”,

(e) by substituting the following for subsection (4):

“(4) Stamp duty shall be charged on every statement delivered in pursuance of subsection (2) at the rate of €0.12 for each cash transaction included in the statement, but the amount charged in respect of—

(a) any individual combined card, both functions of which were used in the year, shall not exceed €5,

(b) any individual combined card, only the cash card function of which was used in the year, shall not exceed €2.50, and

(c) any individual cash card, shall not exceed €2.50.”,

and

(f) in subsection (9) by substituting “of a cash card or combined card” for “of a cash card, combined card or debit card”.

(2) Notwithstanding the commencement of subsection (1), section 123B shall continue to apply in respect of the year 2015 to the same extent as if this Act had not been passed.