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Finance Act, 2002

Tax clearance.

127.—Part 48 of the Principal Act is, with effect from the passing of this Act, amended—

(a) in section 1094—

(i) in subsection (1)—

(I) in the definition of “licence”—

(A) by substituting “means a licence, permit or authorisation” for “means a licence or authorisation”,

(B) by substituting “,” for “,” in each of the paragraphs (h), (j), (k) and (l), and

(C) by inserting the following after paragraph (l):

“(m) subsection (3) (inserted by the Finance Act, 2002) of section 122 of the Finance Act, 1992 , and

(n) subsection (1A) (inserted by the Finance Act, 2002) of the Finance (1909-10) Act, 1910 ;”,

and

(II) in the definition of “specified date”, by substituting “paragraphs (a) to (n)” for “paragraphs (a) to (j)”,

(ii) by substituting the following for subsection (5):

“(5) An application for a tax clearance certificate under this section shall be made to the Collector-General in a form prescribed by the Revenue Commissioners or in such other manner as the Revenue Commissioners may allow.”, and

(iii) by inserting the following after subsection (7):

“(8) A tax clearance certificate to be issued by the Collector-General under this section may—

(a) be issued in electronic format, and

(b) with the agreement in writing of the applicant, be published in a secure electronic medium and be accessed by persons authorised by the applicant to do so.

(9) A tax clearance certificate shall be valid for the period specified in the certificate.”,

and

(b) by substituting the following for section 1095:

“Tax clearance certificates: general scheme.

1095.—(1) In this section—

‘the Acts’ means—

(a) the Tax Acts,

(b) the Capital Gains Tax Acts, and

(c) the Value-Added Tax Act, 1972 , and the enactments amending or extending that Act,

and any instruments made thereunder;

‘licence’ has the same meaning as in section 1094;

‘tax clearance certificate’ shall be construed in accordance with subsection (3).

(2) The provisions of this section shall apply in relation to every application by a person to the Collector-General for a tax clearance certificate other than an application for such a certificate made—

(a) in relation to a licence, or

(b) pursuant to the requirements of—

(i) section 847A (inserted by the Finance Act, 2002),

(ii) the Standards in Public Office Act, 2001 , or

(iii) Regulation 6 of the Criminal Justice (Legal Aid) (Tax Clearance Certificate) Regulations 1999 ( S.I. No. 135 of 1999 ).

(3) Subject to this section, where a person who is in compliance with the obligations imposed on the person by the Acts in relation to—

(a) the payment or remittance of any taxes, interest or penalties required to be paid or remitted under the Acts, and

(b) the delivery of any returns to be made under the Acts,

applies to the Collector-General in that behalf the Collector-General shall issue to the person a certificate (in this section referred to as a ‘tax clearance certificate’) stating that the person is in compliance with those obligations.

(4) A tax clearance certificate shall not be issued to a person unless—

(a) that person and, in respect of the period of that person's membership, any partnership of which that person is or was a partner,

(b) in a case where that person is a partnership, each partner, and

(c) in a case where that person is a company, each person who is either the beneficial owner of, or able directly or indirectly to control, more than 50 per cent of the ordinary share capital of the company,

is in compliance with the obligations imposed on the person and each other person (including any partnership) by the Acts in relation to the matters specified in paragraphs (a) and (b) of subsection (3).

(5) Where a person who applies for a tax clearance certificate in accordance with subsection (3) (in this section referred to as ‘the first-mentioned person’) carries on a business activity which was previously carried on by, or was previously carried on as part of a business activity by, another person (in this section referred to as ‘the second-mentioned person’) and—

(a) the second-mentioned person is a company connected (within the meaning of section 10 as it applies for the purposes of the Tax Acts) with the first-mentioned person or would have been such a company but for the fact that the company has been wound up or dissolved without being wound up,

(b) the second-mentioned person is a company and the first-mentioned person is a partnership in which—

(i) a partner is or was able, or

(ii) where more than one partner is a shareholder, those partners together are or were able,

directly or indirectly, whether with or without a connected person or connected persons (within the meaning of section 10 as it applies for the purposes of the Tax Acts), to control more than 50 per cent of the ordinary share capital of the company, or

(c) the second-mentioned person is a partnership and the first-mentioned person is a company in which—

(i) a partner is or was able, or

(ii) where more than one partner is a shareholder, those partners together are or were able,

directly or indirectly, whether with or without a connected person or connected persons (within the meaning of section 10 as it applies for the purposes of the Tax Acts), to control more than 50 per cent of the ordinary share capital of the company,

then, a tax clearance certificate shall not be issued by the Collector-General under subsection (3) to the first-mentioned person unless, in relation to that business activity, the second-mentioned person is in compliance with the obligations imposed on that person by the Acts in relation to the matters specified in paragraphs (a) and (b) of subsection (3).

(6) Subsections (5) to (9) of section 1094 shall apply to an application for a tax clearance certificate under this section as they apply to an application for a tax clearance certificate under that section.”.