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Special Finance Bill 2018 TaxFax
This Special Finance Bill TaxFax covers the main provisions of the Bill that were published today. Further details of provisions that were announced in the Budget are covered in our Budget TaxFax and we focus here on the additional information provided by the Bill today. Today’s TaxFax also covers the new measures introduced by the Bill.

Finance Bill 2018 Nationwide Tour will begin on 27 November at locations around the country. It will provide you with detailed analysis of the key elements of the Bill and the implications for you and your clients. 

Read the Finance Bill and explanatory memorandum.
The following topics are covered:
Employment and Investment Incentive (EII) and Start up Relief for Entrepreneurs (SURE)
Confirmation of Budget 2019 measures
Part 16 of the TCA (Income Tax Relief for Investment in Corporate Trades) has been rewritten by section 23 of the Bill. The key amendments include:

Start-up Capital Incentive
The “connected parties” restrictions for EII investments will not apply if the qualifying company is a micro-enterprise at the time the shares are issued, and the company exists solely for carrying on a qualifying new venture. A micro-enterprise is an enterprise with fewer than 10 employees and with annual turnover of less than €2 million (Annex 1 of GBER).

The qualifying company cannot have traded or prepared to trade, more than 7 years prior to the share issue date and cannot have any partner businesses or linked businesses. The maximum lifetime limit on qualifying investment is €500,000 for eligible shares issued since 6 April 1984.

EII administration
The administration of the EII is moving to a self-certification model. A qualifying company will be required to provide investors with a “statement of qualification” before investors can claim tax relief on their investment. The purpose of this statement is to confirm that the company meets the conditions of the relief.

The legislation outlines the details to be included on the statement to claim initial relief (i.e. 30/40ths of the investment in the year of investment) and on the statement of qualification (for follow-on relief). If a company incorrectly self-certifies that it meets the conditions for EII, the company will be liable to any clawback of excess relief claimed. The statement will be treated as a tax return and consequently, penalties for an incorrect return can arise under section 1077E TCA 1997.

Prior to issuing a “statement of qualification” to investors, a company may apply to Revenue for confirmation that certain conditions are met. These relate to the General Block Exemption Regulations (GBER) requirements as follows:
  • The ‘RICT group’ (i.e. partner businesses and linked businesses) not being “an undertaking in difficulty”, and
  • The criteria relating to business plans, initial risk finance investment, expansion finance investment, follow on risk finance investment. (These terms are now defined in the legislation.)
The changes to the administration are aimed at addressing the current delays in processing applications. The Institute outlined the practical difficulties members were experiencing with EII applications in our submission on the EII and SURE in May.
The administration of the SURE has been simplified. Similar to the EII, a qualifying company must issue a “statement of qualification (SURE)” to an investor to certify it is a qualifying company before tax relief can be claimed.

Both the EII and SURE have been extended to 2021.

The Finance Bill contains nearly 50 pages of legislation on the EII and SURE with myriad refinements to the schemes. These include changes to the “trigger point” for relief claims, the use of funds for R&D and innovation, the issue of redeemable preference shares, reporting requirements and anti-avoidance measures.

On the Finance Bill 2018 Nationwide Tour, our expert speakers will explain in detail the changes to the legislation and their implications for you and your clients.
Personal Tax
Confirmation of Budget 2019 measures
Benefit-in-kind on electric vehicles

Section 9 of the Bill amends sections 121 and 121A TCA 1997 to extend the BIK exemption for electric vehicles, with an original market value (OMV) of €50,000, to 31 December 2021. The BIK exemption was due to expire on 31 December 2018. A deduction of €50,000 will be available for electric vehicles with an OMV more than €50,000, when determining the taxable BIK using existing rules.

Key Employee Engagement Programme (KEEP)
In our
Pre-Finance Bill 2018 submission, the Institute made a number of recommendations to address limitations in the KEEP. These related to the qualifying criteria for individuals, the design of the cap on share options, including the employee remuneration limits and the narrow definition of a qualifying holding company under the rules.

Section 11 of the Bill amends section 128F TCA 1997 to legislate for the changes announced by the Minister in Budget 2019, in an attempt to enhance the scheme. The changes, which are subject to a Ministerial Order, will:
  • Increase the ceiling on the maximum annual market value of shares to be awarded to equate to an employee or director’s annual salary or €100,000
  • Introduce a lifetime limit for employees and directors of €300,000
In addition, the section amends the requirements for providing information to Revenue, for the purposes of collecting information under State aid rules.

Interest relief for landlords
Section 21 of the Bill amends section 97 TCA 1997, to restore 100% loan interest relief against rental income for residential landlords from 1 January 2019. The loan interest must be incurred on a loan used to purchase, repair or improve rented residential property.
New Measures
Exemption of Hepatitis C and HIV payments
Section 6 of the Bill amends section 191 TCA 1997 to extend the tax exemption for certain payments made by the Hepatitis C Tribunal to compensate individuals infected with Hepatitis C or HIV, to payments received from comparable schemes in EEA Member States. The exemption will apply to compensation payments received on or after 1 January 2019.

Exemption of certain childcare support payments
Section 7 of the Bill inserts a new section 194AA into TCA 1997. This section provides for an income tax exemption for certain payments made by the Minister for Children and Youth Affairs to assist parents with the cost of childcare. The relevant payments will be ignored when computing the income of a parent or guardian or their co-habitant for the purposes of the Income Tax Acts. The exemption will apply retrospectively to payments made before 1 January 2019.

Benefit-in-kind for members of the Permanent Defence Force
Section 8 of the Bill inserts a new section 120B into TCA 1997. This section provides for an exemption from a benefit-in-kind charge on the provision of certain living accommodation and health care benefits to members of the Permanent Defence Force. The exemption will apply from 2018 tax year onwards.

Benefit-in-kind for employees of health insurance companies
Section 10 of the Bill is a technical amendment to section 985A TCA 1997. It clarifies that PAYE must be operated on free or reduced-cost health insurance or dental insurance policies provided to employees of health or dental insurance companies.

Relief for ASC under Public Service Pay and Pensions Act 2017
Section 12 of the Bill introduces a new section 790CA into TCA 1997, to enable public servants to obtain a Schedule E deduction for any Additional Superannuation Contribution (ASC) which will be payable under the Public Service Pay and Pensions Act 2017 from 1 January 2019. The ASC will replace the Pension Related Deduction (PRD) introduced under the Financial Emergency Measures, which currently qualifies as a schedule E deduction under section 790C TCA 1997. The deduction for the ASC will be available in the year in which the contribution is paid and the new section applies from 1 January 2019.

Special provisions for employed individuals who are paid on a weekly or fortnightly basis
Section 13 of the Bill inserts a new section 480B into TCA 1997, which makes a number of changes to ensure that employed individuals who are paid on a weekly or fortnightly basis will not be negatively impacted by a “Week 53 payday”. This section allocates increased specified credits, deductions and standard rate cut off point (i.e. 1/52 or 1/26 of the relevant credits and cut off point) to affected individuals. There are specific anti-avoidance provisions included to cater for situations where pay dates may have been altered.

Payments under the Magdalen Laundry Restorative Justice Ex-Gratia Scheme
Section 14 of the Bill amends sections 205A, 256, 261B, 267, 730GA and 739G TCA 1997 and inserts new sections 263D and 263E into the TCA 1997. The amendments extend the tax exemption granted by section 205A TCA 1997 to payments made to women who were resident in certain “adjacent institutions”.

Section 14 also provide for an income tax and capital gains tax exemption for any income or capital gains arising from the investment or reinvestment of awards from the Magdalen Restorative Justice Ex-Gratia Scheme. The changes to section 205A TCA 1997 are retrospective and tax refunds for the tax years 2013 and 2014 will be facilitated by the extension of the time limit for claiming refunds under this section. Further amendments facilitate the payment of certain investment income without the deduction of relevant taxes.

Rent-a-room relief
Section 22 of the Bill amends section 216A TCA 1997 by introducing a minimal rental period of 28 days for a room or rooms in a qualifying residence under the rent-a-room scheme. This amendment will expressly exclude certain short-term lettings from the incentive from 1 January 2019. The measure will not impact short-term lettings to language students, provision of respite care or five day a week ‘digs’.
Capital Allowances 
Confirmation of Budget 2019 Measures
Accelerated allowances for gas propelled vehicles and refuelling equipment

Section 16 of the Bill inserts a new section 285C into TCA 1997 that provides for accelerated capital allowances, at a rate of 100%, for capital expenditure incurred on “new” gas propelled vehicles and refuelling equipment used for the purposes of a trade. It will apply to capital expenditure incurred from 1 January 2019 to 31 December 2021. The vehicles must be used for conveyance of goods, haulage or carrying passengers.

Accelerated allowances for employer provided childcare and fitness facilities
Section 17 of the Bill inserts two new sections into TCA 1997, sections 285B and 843B and repeals section 12 of Finance Act 2017 (which was subject to a commencement order). The technical amendment introduced in Finance Bill 2018 will ensure that the scheme is available to all employers. The relief provides for a 100% allowance for relevant equipment in the year expenditure is incurred and allowances over 7 years for expenditure incurred on a ‘qualifying premises’. The scheme will commence from 1 January 2019.
New measures
Accelerated allowances for energy efficient equipment

Section 285A TCA 1997 is amended by section 15 of the Bill to allow the Sustainable Energy Authority of Ireland (SEAI) to maintain the list of eligible products under the scheme on their website. The amendments intend to enhance the administrative effectiveness of the scheme.
Corporation Tax
Confirmation of Budget 2019 measures
Controlled Foreign Company rules

Section 25 of the Bill provides for the introduction of Controlled Foreign Company (CFC) rules for accounting periods beginning on or after 1 January 2019. Ireland committed to adopting CFC rules under the EU Anti-Tax Avoidance Directive (ATAD), from 1 January next year. The CFC rules are an anti-abuse measure, designed to prevent the artificial diversion of profits from controlling companies in Ireland to offshore subsidiaries, located in low or no tax jurisdictions. The CFC rules operate by attributing certain undistributed income of a CFC, arising from non-genuine arrangements put in place for the essential purpose of securing a tax advantage, to the controlling company in Ireland for immediate taxation, where that parent company has “relevant Irish activities” (i.e. significant people functions (SPFs) in Ireland).

In September, the Department of Finance published a CFC Feedback Statement seeking input on the proposed CFC rules. The Institute
responded to the consultation, focusing on the areas of concern raised by members. A number of these matters have been reflected in the legislation published today. There is no reference to ‘cash box’ companies in the legislation.

A company is considered to have control of a subsidiary for CFC purposes, if it has direct or indirect ownership of or entitled to acquire more than 50% of the share capital, voting power or distributions. The terms ‘participator’, ‘associate’, ‘director’ and ‘loan creditor’ under CFC rules are given the same meaning as they have under close company provisions.

The CFC charge that can be imposed on an Irish controlling company will depend on the extent to which the CFC holds the assets or bears the risks that it does, were it not for the controlling company undertaking SPFs in Ireland, relating to those assets and risks. SPFs are defined for Irish CFC purposes, by reference to the use of the term in the 2010 OECD Report on the Attribution of Profits to Permanent Establishments.

Section 25 provides for the following exemptions from a CFC charge:
  • Effective tax rate exemption: where the CFC pays a comparatively higher amount of tax in its resident territory than it would have paid in Ireland.
  • Low profit margin exemption: where the accounting profits of a CFC are less than 10% of its relevant operating costs.
  • Low accounting profit exemption: where the accounting profits of a CFC are less than €750,000 and the amount of those profits representing non-trading income is less than €75,000 or the accounting profits are less than €75,000.
  • Exempt period exemption: a one-year grace period is given for newly acquired CFCs, where certain conditions are met.
The legislation provides that the CFC rules will not apply in circumstances where the arrangements, under which the relevant SPFs are performed, are entered on an arm’s length basis or are subject to the Irish transfer pricing regime under Part 35A TCA 1997.

Exit Tax
The Minister announced on Budget Day that he was bringing forward the implementation of new ATAD compliant exit tax rules from midnight. Section 30 of the Bill replaces section 627 TCA 1997 to provide that an exit tax will apply on the occurrence of any of the following events on or after 10 October 2018:
  • where a company transfers assets from its permanent establishment (PE) in Ireland to its head office or to a PE in another territory;
  • where a company transfers the business (including the assets of the business) carried on by its PE in Ireland to another territory, or
  • where an Irish resident company transfers its residence to another country.
The exit tax will not apply if the assets of an Irish-resident company continue to be used in a PE of the company in Ireland.

The new exit tax will effectively tax unrealised capital gains where companies migrate residence or transfer assets offshore without an actual disposal, such that they leave the scope of Irish tax, by deeming a disposal to have occurred. Where assets continue to be within the scope of Irish tax (e.g. Irish land), exit tax will not apply.

The rate of exit tax will be 12.5%. However, an anti-avoidance provision is included in the legislation to ensure that a rate of 33% rather than 12.5% will apply if the exiting event forms part of a transaction to dispose of the asset the purpose of which is to ensure that the gain is charged at the lower 12.5% rate. The definition of ‘transaction’ for the purposes of this provision is as set out in section 811C TCA 1997.

Exit tax will not apply to assets which relate to the financing of securities, assets given as security for a debt, or where the asset transfer takes place to meet prudential capital requirements or for liquidity management, where such assets will revert to the PE or company within 12 months of the transfer.

The new section 628 TCA 1997 confirms that the market value of assets subject to exit tax in another EU Member State will be taken as the acquisition cost in Ireland for CGT purposes, unless it does not reflect its market value.

The new section 629A TCA 1997 allows for the recovery of the exit tax in respect of a non-Irish tax resident company from another Irish tax resident company within a group or from a controlling director who is Irish tax resident.

Payment of exit tax may be deferred by a company electing to pay the tax in 6 equal instalments at yearly intervals, in the case of a migration to an EU or an EEA State. Statutory interest will apply to any payments made after the due date. An election to pay the tax by instalments must be made electronically in the company’s tax return.

Provisions which were previously contained in section 629A TCA 1997 regarding companies ceasing to be resident on the formation of an SE or an SCE have been replicated in the new section 629C TCA 1997.

Extension of start-up relief to 2021
Section 20 extends the three-year tax relief for certain start-up companies (Section 486C) for a further three years to 31 December 2021.

Film relief
Section 24 of the Bill amends section 481 TCA 1997 and includes the measures announced by the Minister in Budget 2019. It provides for a four-year extension of the relief until December 2024 and introduces the tapered regional film uplift. The regional uplift of 5% in years 1 and 2, 3% in year 3 and 2% in year 4 is subject to EU approval.
A number of administrative changes have also been introduced:
  • Film Relief Credit is moved to a self-assessment basis.
  • Issuance of cultural certificates and certification for the regional uplift by the Minister for Arts, Heritage and Gaeltacht to address delays in the application process.
  • Changes to ensure continued compliance with State aid requirements.
New measures
Close companies – anti-avoidance

Section 18 of the Bill inserts a new anti-avoidance provision into section 438A TCA 1997 (extension of section 438 to loans by companies controlled by close companies). The provision is aimed at arrangements where a participator or his/her associate receives a loan that does not give rise to a charge under Section 438(1). This section applies to arrangements entered into from today, 18 October.

Intangible assets
Section 291A TCA 1997 is amended by section 26 of the Bill. The purpose of the amendment is to clarify the operation of the relief following the re-introduction of the 80% cap in Finance Act 2017. The amendment requires that income generated from qualifying intangible assets acquired before and after 11 October 2017 are segregated into two separate income streams. This reflects the position which had previously been set out in Revenue Guidance published in January 2018. The company must maintain documentary evidence to show that the apportionment is made on a "just and reasonable" basis. The amendment applies as and from 11 October 2017.
Confirmation of Budget 2019 measures
Income averaging and stock relief

Section 19 amends section 657 TCA 1997 (averaging of farm profits) to remove the restriction on claiming income averaging where the famer, or their spouse/civil partner, carry on another trade or profession or are a director of a company carrying on a trade or profession, where they can control more than 25% of the ordinary share capital of the company. Income averaging will only apply in respect of the farm profits.

Section 19 also extends Stock Relief for a further three years, to 31 December 2021.

Extension of Young Trained Farmers Stamp Duty Relief
Section 46 provides for the extension of the young trained farmer stamp duty relief (section 81AA SDCA 1999) for another three years, until the end of 2021. This extension is subject to a commencement order, as the relief is a State aid.

Section 46 also makes some other amendments to section 81AA and 81C which relate to the transfer of farmland. These include:
  • A lifetime cap of €70,000 on the amount of State aid that can be granted to a farmer (taking account of young trained farmer stamp duty relief, stock relief and succession farm partnerships credit).
  • Amendment to some of the qualifying conditions that apply in section 81AA where a young trained farmer achieves the relevant qualification after the transfer of the land.
  • Technical amendments to remove outdated references.
  • Technical amendments to section 81C in relation to stamp duty relief for farm consolation to better align the section with self-assessment for stamp duty
New measures
Farm restructuring relief – providing information to Revenue

Individuals who avail of CGT relief for farm restructuring are required to provide certain information to enable Revenue to calculate the gain that would arise if the relief had not applied. Section 29 specifies that this information is to be provided at the same time the income tax return is due to be submitted.

For those who avail of the relief between 1 July 2016 and 31 December 2018, the information is to be submitted at the same time as the 2018 income tax return. For 2019 and future years, the information is to be provided when the return for the year in which relief is claimed is due.
Capital Taxes 
Confirmation of Budget 2019 Measures
CAT Group A threshold increased

As announced on Budget Day, section 51 of the Bill confirms that the CAT Group A tax-free threshold, which applies to gifts and inheritances from parents to their children, has been increased by €10,000 to €320,000 for gifts and inheritances received on or after 10 October 2018.
New measures
Trustees ceasing to be resident in the State

A charge to capital gains tax arises under section 579B TCA 1997 where the trustees of trust become non-Irish resident or ordinarily resident. The Court of Justice of the European Union recently ruled that a similar provision in UK legislation was incompatible with freedom of establishment in so far as an immediate payment of CGT was required. Accordingly, section 27 of the Bill amends section 579B to provide that trustees can opt to pay tax chargeable under the section in instalments over 5 years.

Dwelling House Exemption
Dwelling House Exemption allows an exemption from CAT when a property is inherited and certain conditions are met. One condition for the exemption is that an individual must not have an interest in any other dwelling house at the date of inheritance. Section 50 of the Bill introduces an anti-avoidance measure to prevent a person who inherits a property, from claiming the Dwelling House Exemption, by transferring their interest in another property into a discretionary trust.

Clawback of CAT reliefs and time limits
There are several CAT reliefs which are subject to clawback, if certain conditions are not met for a period of 6 years. This timeframe is not aligned with the usual 4-year time limit which applies for the making of enquiries and authorising of inspections. The amendment in section 49 and Schedule 1 of the Bill provides that where conditions for a relief must be satisfied for a specified period after a relief is claimed, the 4-year period does not begin until the latest date on which all the conditions for the relief were required to be satisfied.

Late filing surcharge for discretionary trust tax returns
There is currently no legislative basis for the application of a surcharge in the case of the late filing of discretionary trust tax returns. The definition of “specified return date” in subsection (1) of section 53A CATCA 2003 has been extended to include the return filing date for discretionary trust tax returns which is the last day of the 4-month period after the valuation date. This means that a late filing surcharge can now be applied where discretionary trust tax returns are not filed on time.

Due date for CAT following the determination of an appeal
Section 49 and Schedule 1 of the Bill amend CATCA 2003 to reinstate a provision which was inadvertently removed by the Finance (Tax Appeals) Act 2015, relating to a due date for payment of CAT, which has been determined to be due by the Appeal Commissioners. The amendment provides that such CAT is due and payable on the original due date for the appealed assessment. However, if the tax paid before the appeal was at least 90% of the tax determined to be due, then the outstanding CAT is due one month following the determination of the appeal.

CAT Business Relief
Schedule 1, Paragraph (d) of the Bill updates the definitions in section 90(1) CATCA 2003 to take account of the Companies Act 2014.

Anomaly in life assurance policies where CGT/CAT payable on same event
Relief is available for CGT paid where both CGT and CAT are payable on the same event. To avail of this relief, the asset must be retained by the beneficiary for 2 years. A new subsection (3A) has been inserted into section 104 CATCA 2003 which disapplies the usual clawback of the credit, where the asset is disposed of within two years after the date of the gift or the inheritance, in the case of a life assurance policy that must be cashed in and cannot be retained for the two-year period.

Disposal of site to child
Section 603A TCA 1997 provides relief from capital gains tax on the transfer of a site by a parent (or both parents simultaneously) to a child, where the transfer enables the child to construct his/her principal private residence on the site. Section 28 of the Bill amends section 603A to allow both a child and his/her spouse/civil partner to benefit from the relief and will apply to disposals made on or after 1 January 2019.

Certain contracts to be chargeable as conveyances on sale and resting in contract
Section 45 of the Bill amends sections 31 and 31A SDCA 1999 to enable Revenue to issue a stamp duty certificate, rather than transferring stamp duty paid by means of ‘credit,’ when there is a subsequent conveyance or transfer. The stamp duty certificate will state that the later instrument is not chargeable to stamp duty.

Right of appeal against refusal of repayment of stamp duty
Section 47 amends section 21 SDCA 1999, by inserting a right of appeal to the Appeal Commissioners against a decision made by Revenue relating to a claim for a repayment of stamp duty. This is required for the purposes of making a valid appeal under section 949I TCA 1997.
Confirmation of Budget 2019 measures
Changes to the 9% VAT rate

As announced on Budget Day, section 41 of the Bill confirms that goods and services, which were previously subject to VAT at 9% will be subject to VAT at 13.5% with effect from 1 January 2019, except for the provision of sporting facilities and the supply of newspapers and other periodicals.

In addition, the VAT rate on electronically supplied books, newspapers and periodicals will be reduced from 23% to 9% from 1 January 2019.
New measures
Forced sales of residential property by a receiver

Section 42 of the Bill deletes section 94(7)(e) VATCA 2010. This is an anti-avoidance measure to clarify the VAT treatment of sales of residential properties by receivers in certain circumstances.

Use and enjoyment provisions relating to pre-paid telephone cards
Section 43 of the Bill amends section 104(2) VATCA 2010, removing the entitlement of telephone card suppliers to reduce the VAT already paid on the supply of telephone cards, when they are used by Irish private consumers to access a telecommunications service from outside the EU. This measure will take effect from 1 January 2019.
PAYE Modernisation
Section 56 of the Bill makes a number of amendments to TCA 1997 to facilitate the remaining technical changes required for PAYE modernisation on 1 January 2019 including:
  • Section 897A is amended to enable the collection of pension information including the Additional Superannuation Contribution for individual employees in the monthly return.
  • Section 986A is amended to confirm that any emoluments that are re-grossed under this section are chargeable on the employee under Schedule E and the employee can obtain the benefit of the resulting tax paid.
  • USC anti-avoidance provisions regarding “Week 53 payments”.
  • The requirement for a USC monthly return, detailing the USC deducted or repaid in accordance with the USC regulations.
  • Amendment of the time frame for return of information required under section 531AAD from 46 days to 14 days after the end of the tax year.
Changes were also included to update the references in the Act for the updated Income Tax Regulations that underpin the operation of PAYE and the ‘Revenue Payroll Notification’.
Tax Appeals Commission
Section 53 amends TCA 1997 dealing with the Tax Appeals Commission to address certain administrative difficulties and to facilitate the operation of the appeals process.

The amendments include:
  • Section 949AG has been deleted. The purpose of the deletion is to ensure that its application does not have unintended consequences and impose an additional and inappropriate administrative burden on the Tax Appeals Commission and on Revenue.
  • As a result of the deletion of section 949AG, a consequential amendment has been made which involves the re-insertion of an unchanged paragraph (c) in section 669(5) (valuation of farm trading stock following its removal by the Finance (Tax Appeals) Act 2015 in connection with the enactment of section 949AG.
  • Paragraphs (d) and (e) of section 949Q have been deleted so that certain detailed information is no longer routinely requested as part of the Statement of Case process.
  • Section 949AN has been amended to clarify the authority given to the Appeal Commissioners to determine a new appeal on the basis of a previous determination involving a similar matter, without the need to hold a new hearing.
  • Section 949P(1) has been amended to correct an incorrect cross-reference.
Miscellaneous new measures
Amendment to sugar sweetened drinks tax
Section 31 of the Bill amends Chapter 1 of Part 2 of the Finance Act 2017 by extending the definition of a “sugar sweetened drink” to ensure that some categories of beverages will be subject to a minimum calcium content from 1 January 2019. The minimum calcium content for affected beverages is 119 milligrams per 100 millilitres. A technical amendment to section 42(1) of Chapter 1 of Part 2 of the Finance Act 2017 is also included and it clarifies that the conditions for repayment of sugar sweetened drinks tax for supplies outside of Ireland and for returned goods operate independently.

Provision of taxpayer information to the Department of Agriculture
Section 667C TCA 1997 provides for an enhanced stock relief scheme which constitutes a State aid. To fulfil Ireland’s monitoring requirements under State aid regulations, the Department of Agriculture, Food and the Marine has set up a database to record de minimis aid granted and it will be necessary for Revenue to send taxpayer information to the Department. Section 54 of the Bill amends section 851A TCA 1997 to allow Revenue to transfer taxpayer information to the Department of Agriculture, Food and the Marine for this purpose.

Revenue evidence of authorisation
Section 858 TCA 1997 provides that an identity card (as defined in the section) is acceptable as evidence of a Revenue officer’s authorisation for the purposes of specified provisions of tax legislation. The section has been updated by section 55 of the Bill, as it included a reference to the European Communities (Intrastat) Regulations, 1993 (S.I. No. 136 of 1993) which have been replaced and revoked by the European Communities (Intrastat) Regulations 2011, (S.I. 610 of 2011).

Agreements reached under Mutual Agreement Procedures
Section 959AA TCA 1997 has been amended by section 57 of the Bill to allow for the amending of assessments outside the four-year time limit in the case of bilateral Mutual Agreement Procedures (MAP) reached between the competent authority in Ireland and a competent authority in another jurisdiction, with which Ireland has a Double Taxation Agreement. This will allow a Revenue officer to amend an assessment to implement the outcome of a bilateral MAP agreement, regardless of the wording of the relevant tax treaty and for Ireland to meet the minimum standard of implementing all bilateral MAP agreements reached. Currently, some tax treaties do not provide for an override of the time limit which may result in Ireland not being in a position to implement a MAP agreement. The OECD had identified this as a shortcoming for Ireland in relation to implementing agreements reached under the MAP.

Exemption from tax for payments to certain non-profit making bodies
Section 58 makes a number of amendments to certain tax exemption provisions in Part 7, Part 26, Part 27, Schedule 4 and Schedule 15 TCA 1997. These include payments to the Motor Insurers Insolvency Compensation Fund, Motor Insurers Bureau of Ireland, Limerick Twenty Thirty Strategic Development DAC , the National Transport Authority, Sport Ireland, the Child and Family Agency and the Western Development
Commission. These bodies are non-profit making and/or are being made exempt from taxation in order to avoid circular payments in and out of the exchequer. The exemptions are to take effect from the dates of establishment.

Professional Services Withholding Tax (PSWT)
Section 59 has amended schedule 13 TCA 1997 to remove six entities that are no longer accountable persons required to operate PSWT and by adding four entities that are now accountable persons.