Finance Act 2016

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Amendment of section 126AA of Principal Act (further levy on certain financial institutions)

50. (1) Section 126AA of the Principal Act is amended—

(a) by substituting the following for subsection (1):

“(1) In this section—

‘Act of 1997’ means the Taxes Consolidation Act 1997 (No. 39 of 1997);

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

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

‘base year’ means the year—

(a) 2011, in respect of the years 2014, 2015 and 2016,

(b) 2015, in respect of the years 2017 and 2018,

(c) 2017, in respect of the years 2019 and 2020, and

(d) 2019, in respect of the year 2021;

‘due date’ means, in relation to a year, 20 October in the year concerned;

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

‘relevant person’ means a person who, in a base year, comes within the meaning of paragraph (a) or (b) of the definition of ‘relevant deposit taker’ in section 256(1) of the Act of 1997 and who—

(a) is obliged in the base year to pay—

(i) appropriate tax under section 258(3) of the Act of 1997, or

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

and

(b) is carrying on a trade or business in the State (whether including a relevant business or not) at the due date,

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

‘relevant retention tax’, in relation to a relevant person and a base year, 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 base year under section 258(3) of the Act of 1997, and

(b) the amount paid by the person in the base year 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 base year which, in accordance with section 258 or 259 of the Act of 1997, should have been paid by the person in that base year, and

C is the aggregate of any amounts of appropriate tax paid by the person in the base year 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 base year.”,

(b) in subsection (2) by substituting “2014 to 2021” for “2014, 2015 and 2016”,

(c) in subsection (3) by substituting “in a base year” for “2011”,

(d) in subsection (6) by substituting “59 per cent” for “35 per cent”, and

(e) by deleting subsection (10).

(2) Paragraph (d) of subsection (1) shall have effect in relation to a statement to be delivered in accordance with subsection (2) of section 126AA of the Principal Act for the year 2017 and subsequent years.