Finance Act, 1992

Tax clearance in relation to certain licences.

242.—(1) In this section—

“the Act of 1968” means the Finance (Miscellaneous Provisions) Act, 1968 ;

“the Acts” means—

(a) the Tax Acts,

(b) the Capital Gains Tax Acts,

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

and any instruments made thereunder;

“beneficial holder of a licence” means the person named on the licence or, where that person is a nominee, the person on whose behalf the nominee holds the licence;

“licence” means a licence of the kind referred to in the proviso (inserted by section 156 of the Finance Act, 1992) to section 49 (1) of the Finance (1909-10) Act, 1910 ;

“specified date” means the date of commencement of a licence sought to be granted under section 49 (1) of the Finance (1909-10) Act, 1910 , as specified for the purposes of a tax clearance certificate under subsection (2);

“tax clearance certificate” shall be construed in accordance with subsection (2).

(2) Subject to the provisions of subsection (3), the Collector-General shall, on an application to him by the person who will be the beneficial holder of a licence due to commence on a specified date, issue a certificate (in this section referred to as a “tax clearance certificate”) for the purposes of the grant of a licence, if—

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

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

(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,

has or have complied with all the obligations imposed on him or them by the Acts, in relation to—

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

(ii) the delivery of returns.

(3) Where a person (hereafter in this section referred to as the “first-mentioned person”) will be the beneficial holder of a licence due to commence on a specified date and another person (hereafter in this section referred to as the “second-mentioned person”) was the beneficial holder of the licence at any time during the year preceding the said date, and—

(a) the second-mentioned person is a company connected within the meaning of section 16 (3) of the Act of 1968 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 either on his or their own, or with a connected person or connected persons within the meaning of section 16 (3) of the Act of 1968, 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 either on his or their own, or with a connected person or connected persons within the meaning of section 16 (3) of the Act of 1968, to control more than 50 per cent. of the ordinary share capital of the company,

a tax clearance certificate shall not be issued by the Collector-General under subsection (2) unless, in relation to the activities conducted under the licence, the second-mentioned person has complied with his obligations under the Acts as specified in the said subsection:

Provided that this subsection shall not apply to a transfer of a licence effected before the 24th day of April, 1992, or apply to such transfer effected after that date where a contract for the sale or lease of the premises to which the licence relates was signed before that date.

(4) 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 and shall specify the commencement date of the licence to which the application relates.

(5) If an application for a tax clearance certificate under this section is refused by the Collector-General, he shall, as soon as is practicable, communicate in writing such refusal and the grounds therefor to the person concerned.

(6) (a) Where an application under this section to the Collector-General for a tax clearance certificate is refused the person aggrieved by such refusal may, by notice in writing given to the Collector-General within 30 days of such refusal, apply to have his application heard and determined by the Appeal Commissioners:

Provided that no right of appeal shall exist by virtue of this section in relation to any amount of tax or interest due under the Acts.

(b) A notice under paragraph (a) shall be valid only if—

(i) it specifies—

(I) the matter or matters with which the person is aggrieved, and

(II) the grounds, in detail, of his appeal as respects each such matter,

and

(ii) any amount under the Acts which is due to be remitted or paid, and which is not in dispute, is duly remitted or paid.

(c) The Appeal Commissioners shall hear and determine an appeal made to them under this subsection as if it were an appeal against an assessment to income tax and, subject to paragraph (d), all the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

(d) On the hearing of an appeal made under this subsection, the Appeal Commissioners shall have regard to all matters to which the Collector-General is required to have regard under the provisions of this section.