|
|
Amendment of section 10 (amount on which tax is chargeable) of Principal Act.
|
80.— Section 10 of the Principal Act is amended:
|
|
| |
(a) in subsection (3)—
|
|
| |
(i) by deleting paragraph (a), and
|
|
| |
(ii) in paragraph (c) by substituting “subsection (3A)” for “paragraph (a)”,
|
|
| |
(b) by inserting the following subsection after subsection (3):
|
|
| |
“(3A) (a) The Revenue Commissioners may, where they consider it necessary or appropriate to do so to ensure the correct collection of the tax, make a determination that the amount on which tax is chargeable on a supply of goods or services is the open market value of that supply, if they are satisfied that the actual consideration in relation to that supply is—
|
|
| |
(i) lower than the open market value of that supply where the recipient of that supply has no entitlement to deduct tax under section 12, or is not entitled to deduct all of the tax chargeable on that supply, or is a flat-rate farmer,
|
|
| |
(ii) lower than the open market value of that supply, being an exempted activity, where the supplier engages in the course or furtherance of business in non-deductible supplies or activities as defined in section 12(4)(a), or is a flat-rate farmer, or
|
|
| |
(iii) higher than the open market value where the supplier engages in the course or furtherance of business in non-deductible supplies or activities as defined in section 12(4)(a), or is a flat-rate farmer,
|
|
| |
and that—
|
|
| |
(I) the supplier and the recipient of that supply are persons connected by financial or legal ties, being persons who are party to any agreement, understanding, promise or undertaking whether express or implied and whether or not enforceable or intended to be enforceable by legal proceedings, or
|
|
| |
(II) either the supplier or the recipient of that supply exercises control over the other and for this purpose ‘control’ has the meaning assigned to it by section 8(3B).
|
|
| |
(b) A value determined in accordance with this subsection shall be deemed to be the true value of the supply to which it applies, for all the purposes of this Act.
|
|
| |
(c) The Revenue Commissioners may make regulations as seem to them to be necessary for the purposes of this subsection.
|
|
| |
(d) A determination under this section may be made by an inspector of taxes or such other officer as the Revenue Commissioners may authorise for the purpose.”,
|
|
| |
and
|
|
| |
(c) in subsection (10) by inserting the following after the definition of ‘open market price’:
|
|
| |
“ ‘ open market value ’, in relation to a supply of goods or services, means the total consideration excluding tax that a customer, at a marketing stage which is the same as the stage at which the supply of the goods or services takes place, would reasonably be expected to pay to a supplier at arm’s length under conditions of fair competition for a comparable supply of such goods or services;
|
|
| |
but if there is no such comparable supply of goods or services then ‘ open market value ’ means—
|
|
| |
(a) in respect of a supply of goods, an amount that is not less than the purchase price of the goods or of similar goods or, in the absence of a purchase price, the cost price, determined at the time of supply,
|
|
| |
(b) in respect of a supply of services, an amount that is not less than the full cost to the supplier of providing the service;”.
|
