Finance Act, 2002
|
Amendment of section 958 (date for payment of tax) of Principal Act. |
58.—Section 958 (as amended by the Finance Act, 2001 ) of the Principal Act is amended— | ||||||||
(a) by substituting the following for subsection (1): | |||||||||
“(1) (a) In this section— | |||||||||
‘corresponding corporation tax for the preceding chargeable period’, in relation to a chargeable period which is an accounting period of a company, means an amount determined by the formula— | |||||||||
| |||||||||
where— | |||||||||
T is the corporation tax payable by the chargeable person for the preceding chargeable period, | |||||||||
C is the number of months in the chargeable period, and | |||||||||
P is the number of months in the preceding chargeable period; | |||||||||
‘pre-preceding chargeable period’, in relation to a chargeable period, means the chargeable period next before the preceding chargeable period; | |||||||||
‘relevant limit’, in relation to a chargeable period which is an accounting period of a company, means €50,000; but where the length of a chargeable period is less than 12 months the relevant limit in relation to the chargeable period shall be proportionately reduced. | |||||||||
(b) For the purposes of this section, a chargeable person being a company shall be a small company in relation to a chargeable period if the corresponding corporation tax for the preceding chargeable period payable by the chargeable person does not exceed the relevant limit in relation to the accounting period.”, | |||||||||
(b) by substituting the following for subsection (2): | |||||||||
“(2) Subject to subsection (10), preliminary tax appropriate to a chargeable period which is a year of assessment for income tax shall be due and payable on or before 31 October in the year of assessment and, accordingly, references in this Part to the due date for the payment of an amount of preliminary tax shall, in the case where that tax is due for a chargeable period which is a year of assessment, be construed as a reference to 31 October in the year of assessment. | |||||||||
(2A) (a) Preliminary tax appropriate to a chargeable period which is an accounting period of a company ending in the period from 1 January 2002 to 31 December 2005 shall be due and payable in 2 instalments. | |||||||||
(b) The first of the 2 instalments referred to in paragraph (a) (in this section referred to as the ‘first instalment’) shall be due and payable not later than the day which is 31 days before the day on which the accounting period ends; but where that day is later than day 28 of the month in which the first-mentioned day occurs, the first instalment shall be due and payable not later than day 28 of that month or such earlier day in that month as may be specified by order made by the Minister for Finance. | |||||||||
(c) Notwithstanding paragraph (b), in the case where an accounting period of a company is less than one month and one day in length, the first instalment shall be due and payable not later than the last day of the accounting period; but where that day is later than day 28 of the month in which that day occurs, the first instalment shall be due and payable not later than day 28 of that month or such earlier day in that month as may be specified by order made by the Minister for Finance. | |||||||||
(d) Notwithstanding paragraphs (b) and (c), in the case of an accounting period of a company ending in the year 2002, the first instalment shall not be due and payable earlier than 28 June 2002. | |||||||||
(e) The second of the 2 instalments referred to in paragraph (a) (in this section referred to as the ‘second instalment’) shall be due and payable within the period of 6 months from the end of the accounting period, but in any event not later than day 28 of the month in which that period of 6 months ends, or such earlier day in that month as may be specified by order made by the Minister for Finance. | |||||||||
(2B) (a) Preliminary tax appropriate to a chargeable period which is an accounting period of a company ending on or after 1 January 2006 shall be due and payable not later than the day which is 31 days before the day on which the accounting period ends; but where that day is later than day 28 of the month in which the first-mentioned day occurs, that tax shall be due and payable not later than day 28 of that month or such earlier day in that month as may be specified by order made by the Minister for Finance. | |||||||||
(b) Notwithstanding paragraph (a), in the case where an accounting period of a company ending on or after 1 January 2006 is less than one month and one day in length, preliminary tax shall be due and payable not later than the last day of the accounting period; but where that day is later than day 28 of the month in which that day occurs, preliminary tax shall be due and payable not later than day 28 of that month or such earlier day in that month as may be specified by order made by the Minister for Finance. | |||||||||
(2C) (a) References in this Part to the due date for the payment of the first instalment, or the second instalment, of preliminary tax shall be construed in accordance with subsection (2A). | |||||||||
(b) References in this Part to the due date for the payment of an amount of preliminary tax shall, in the case where that tax is due for a chargeable period which is an accounting period of a company ending on or after 1 January 2006, be construed in accordance with subsection (2B).”, | |||||||||
(c) in subsection (3), by substituting “subsections (3A), (4), (4B), (4C), (4D) and (4E)” for “subsections (3A) and (4)”, | |||||||||
(d) in subsection (4), by inserting “which is a year of assessment” after “chargeable period” where it first occurs, and | |||||||||
(e) by inserting the following after subsection (4A): | |||||||||
“(4B) (a) Subject to subsection (4D), where but for this subsection tax payable by a chargeable person for a chargeable period which is an accounting period of a company ending in the period from 1 January 2002 to 31 December 2005 would be due and payable in accordance with subsection (3), and— | |||||||||
(i) the chargeable person has defaulted in the payment of the first instalment or the second instalment of preliminary tax for the chargeable period, | |||||||||
(ii) where the chargeable person is a small company in relation to the accounting period, the first instalment of the preliminary tax paid by the chargeable person for the chargeable period is less than, or less than the lower of— | |||||||||
(I) where the chargeable period is an accounting period of the company ending in the year 2002, 18 per cent of the tax payable by the chargeable person for the chargeable period or 20 per cent of the corresponding corporation tax for the preceding chargeable period, | |||||||||
(II) where the chargeable period is an accounting period of the company ending in the year 2003, 36 per cent of the tax payable by the chargeable person for the chargeable period or 40 per cent of the corresponding corporation tax for the preceding chargeable period, | |||||||||
(III) where the chargeable period is an accounting period of the company ending in the year 2004, 54 per cent of the tax payable by the chargeable person for the chargeable period or 60 per cent of the corresponding corporation tax for the preceding chargeable period, or | |||||||||
(IV) where the chargeable period is an accounting period of the company ending in the year 2005, 72 per cent of the tax payable by the chargeable person for the chargeable period or 80 per cent of the corresponding corporation tax for the preceding chargeable period, | |||||||||
(iii) where the chargeable person is not a small company in relation to the accounting period, the first instalment of the preliminary tax paid by the chargeable person for the chargeable period is less than— | |||||||||
(I) where the chargeable period is an accounting period of the company ending in the year 2002, 18 per cent, | |||||||||
(II) where the chargeable period is an accounting period of the company ending in the year 2003, 36 per cent, | |||||||||
(III) where the chargeable period is an accounting period of the company ending in the year 2004, 54 per cent, or | |||||||||
(IV) where the chargeable period is an accounting period of the company ending in the year 2005, 72 per cent, | |||||||||
of the tax payable by the chargeable person for the chargeable period, | |||||||||
(iv) the aggregate of the first instalment and the second instalment of the preliminary tax paid by the chargeable person for the chargeable period is less than 90 per cent of the tax payable by the chargeable person for the chargeable period, or | |||||||||
(v) the first instalment or the second instalment of the preliminary tax payable by the chargeable person for the chargeable period was not paid by the date on which it was due and payable, | |||||||||
then the tax payable by the chargeable person for the chargeable period shall be deemed to have been due and payable in accordance with paragraph (b). | |||||||||
(b) (i) Tax due and payable in accordance with this paragraph by a chargeable person for a chargeable period which is an accounting period of a company shall be due and payable in 2 instalments. | |||||||||
(ii) The first of the 2 instalments referred to in subparagraph (i) (in this paragraph and in paragraphs (c) and (d) referred to as the ‘first relevant instalment’) shall be due and payable not later than the day on which the first instalment of preliminary tax is due and payable in accordance with subsection (2A). | |||||||||
(iii) The second of the 2 instalments referred to in subparagraph (i) (in this paragraph and in paragraphs (c) and (d) referred to as the ‘second relevant instalment’) shall be due and payable not later than the day on which the second instalment of preliminary tax is due and payable in accordance with subsection (2A). | |||||||||
(c) The amount of the first relevant instalment shall be— | |||||||||
(i) where the chargeable period is an accounting period of the company ending in the year 2002, 20 per cent, | |||||||||
(ii) where the chargeable period is an accounting period of the company ending in the year 2003, 40 per cent, | |||||||||
(iii) where the chargeable period is an accounting period of the company ending in the year 2004, 60 per cent, and | |||||||||
(iv) where the chargeable period is an accounting period of the company ending in the year 2005, 80 per cent, | |||||||||
of the tax payable by the chargeable person for the chargeable period. | |||||||||
(d) The amount of the second relevant instalment shall be an amount equal to the excess of the tax payable by the chargeable person for the chargeable period over the amount of the first relevant instalment. | |||||||||
(4C) Subject to subsection (4E), where but for this subsection tax payable by a chargeable person for a chargeable period which is an accounting period of a company ending on or after 1 January 2006 would be due and payable in accordance with subsection (3), and— | |||||||||
(a) the chargeable person has defaulted in the payment of preliminary tax for the chargeable period, | |||||||||
(b) the preliminary tax paid by the chargeable person for the chargeable period is— | |||||||||
(i) where the chargeable person is a small company in relation to the accounting period, less than, or less than the lower of— | |||||||||
(I) 90 per cent of the tax payable by the chargeable person for the chargeable period, or | |||||||||
(II) the corresponding corporation tax for the preceding chargeable period, | |||||||||
and | |||||||||
(ii) where the chargeable person is not a small company in relation to the accounting period, less than 90 per cent of the tax payable by the chargeable person for the chargeable period, | |||||||||
or | |||||||||
(c) the preliminary tax payable by the chargeable person for the chargeable period was not paid by the date on which it was due and payable, | |||||||||
then the tax payable by the chargeable person for the chargeable period shall be deemed to have been due and payable on the due date for the payment of an amount of preliminary tax for the chargeable period. | |||||||||
(4D) Where as respects a chargeable period which is an accounting period of a company ending in the period 1 January 2002 to 31 December 2005— | |||||||||
(a) the first instalment of preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2A) is less than— | |||||||||
(i) where the chargeable period is an accounting period ending in 2002, 18 per cent, | |||||||||
(ii) where the chargeable period is an accounting period ending in 2003, 36 per cent, | |||||||||
(iii) where the chargeable period is an accounting period ending in 2004, 54 per cent, or | |||||||||
(iv) where the chargeable period is an accounting period ending in 2005, 72 per cent, | |||||||||
of the tax payable by the chargeable person for the chargeable period, | |||||||||
(b) the preliminary tax so paid by the chargeable person for the chargeable period is not less than— | |||||||||
(i) where the chargeable period is an accounting period ending in 2002, 18 per cent, | |||||||||
(ii) where the chargeable period is an accounting period ending in 2003, 36 per cent, | |||||||||
(iii) where the chargeable period is an accounting period ending in 2004, 54 per cent, or | |||||||||
(iv) where the chargeable period is an accounting period ending in 2005, 72 per cent, | |||||||||
of the amount which would be payable by the chargeable person for the chargeable period if no amount were included in the chargeable person's profits for the chargeable period in respect of chargeable gains on the disposal by the person of assets in the part of the chargeable period which is after the date by which the first instalment for the chargeable period is payable in accordance with subsection (2A), | |||||||||
(c) the chargeable person makes a further payment of preliminary tax for the chargeable period within one month after the end of the chargeable period and the aggregate of that payment and the first instalment paid by the chargeable person for the chargeable period in accordance with subsection (2A) is not less than the percentage specified in paragraph (a) in relation to the chargeable period of the tax payable by the chargeable person for the chargeable period, and | |||||||||
(d) the aggregate of those payments and the second instalment paid by the chargeable person for the chargeable period in accordance with subsection (2) is not less than 90 per cent of the tax payable by the chargeable person for the chargeable period, | |||||||||
then the preliminary tax paid by the chargeable person for the chargeable period shall be treated for the purposes of subsection (4B) as having been paid by the date by which it is due and payable. | |||||||||
(4E) Where as respects a chargeable period which is an accounting period of a company ending on or after 1 January 2006— | |||||||||
(a) the preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2B) is less than 90 per cent of the tax payable by the chargeable person for the chargeable period, | |||||||||
(b) the preliminary tax so paid by the chargeable person for the chargeable period is not less than 90 per cent of the amount which would be payable by the chargeable person for the chargeable period if no amount were included in the chargeable person's profits for the chargeable period in respect of chargeable gains on the disposal by the person of assets in the part of the chargeable period which is after the date by which preliminary tax for the chargeable period is payable in accordance with subsection (2B), and | |||||||||
(c) the chargeable person makes a further payment of preliminary tax for the chargeable period within one month after the end of the chargeable period and the aggregate of that payment and the preliminary tax paid by the chargeable person for the chargeable period in accordance with subsection (2B) is not less than 90 per cent of the tax payable by the chargeable person for the chargeable period. | |||||||||
then the preliminary tax paid by the chargeable person for the chargeable period shall be treated for the purposes of subsection (4C) as having been paid by the date by which it is due and payable.”. |