Finance (No. 2) Act 2008

Parking levy in urban areas.

3.— (1) The Principal Act is amended—

(a) by inserting the following after Part 18A (inserted by section 2 ):

“PART 18B

Parking Levy in Urban Areas

Interpretation (Part 18B).

531O.— In this Part—

‘ car ’ means a mechanically propelled road vehicle designed, constructed or adapted for the carriage of the driver or the driver and one or more other persons, other than—

(a) a motor-cycle (within the meaning of section 121),

(b) an official vehicle,

(c) a van (within the meaning of section 121A) where an employee is required by the employer to use the van in the performance of the duties of his or her office or employment, or

(d) a vehicle, other than a van, of a type not commonly used as a private vehicle and unsuitable to be so used;

‘ disabled person’s parking permit ’ means a permit granted in accordance with Article 43 of the Road Traffic (Traffic and Parking) Regulations 1997 ( S.I. No. 182 of 1997 );

‘ emoluments ’ means emoluments to which Chapter 4 of Part 42 applies;

‘ employee ’ has the same meaning as it has for the purposes of the PAYE Regulations;

‘ employer ’ has the same meaning as it has for the purposes of the PAYE Regulations;

‘ entitlement to use a parking space ’ shall be construed in accordance with section 531Q;

‘ fire authority ’ has the same meaning as it has for the purposes of the Fire Services Act 1981 ;

‘ maternity leave ’ means the period of leave referred to in section 8 (as amended by section 2 of the Maternity Protection (Amendment) Act 2004 and by the Maternity Protection Act 1994 (Extension of Periods of Leave) Order 2006) of the Maternity Protection Act 1994;

‘ mechanically propelled road vehicle ’ includes a vehicle the means of propulsion of which is electrical or partly electrical and partly mechanical;

‘ Minister ’ means the Minister for Finance;

‘ net emoluments ’ means emoluments (less allowable contributions (within the meaning of Regulation 41 of the PAYE Regulations)) after the deduction, in accordance with—

(a) the PAYE Regulations, of income tax,

(b) the Social Welfare (Consolidated Contributions and Insurability) Regulations 1996 ( S.I. No. 312 of 1996 ), of a contribution within the meaning of those regulations,

(c) the Health Contributions Regulations 1979 ( S.I. No. 107 of 1979 ), of a health contribution, and

(d) Part 18A (as inserted by the Finance (No. 2) Act 2008), of income levy;

‘ official vehicle ’ means a vehicle which is owned or provided by the State or by a State authority where an employee of the State or of such an authority is required by the employer to use the vehicle in the performance of the duties of his or her office or employment;

‘ parking levy ’ means the tax, provided for in section 531T, on an entitlement to use a parking space in an urban area;

‘ parking space ’ means any area or part of an area on, at, or in which it is possible to park a vehicle and includes any part of a building, erection or structure (including a moveable structure);

‘ PAYE Regulations ’ means the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 );

‘ personal public service number ’ has the same meaning as in section 262 of the Social Welfare Consolidation Act 2005 ;

‘ public sector employee ’ means a person whose emoluments are paid, funded or partly funded directly or indirectly by the State;

‘ relevant local authority ’ means the city council (within the meaning of section 2 of the Local Government Act 2001 ) of Cork, Dublin, Galway, Limerick or Waterford;

‘ State authority ’ means the Garda Síochána, the Defence Forces, the Health Service Executive (in so far as it relates to the ambulance service), the Revenue Commissioners (in so far as it relates to the Customs service), a fire authority or such other body as may be prescribed by order of the Minister under section 531P(1);

‘ urban area ’ means an area or areas designated by order of the Minister under section 531P(1);

‘ year of assessment ’ means a calendar year.

Urban areas to which parking levy applies and making of orders by the Minister.

531P.— (1) The Minister may, following consultation with any other Minister of the Government as he or she considers appropriate in the circumstances, by order—

(a) designate that an area or areas which is or are within the administrative area (within the meaning of section 2 of the Local Government Act 2001 ) of a relevant local authority shall be an urban area for the purposes of this Part,

(b) prescribe that a body shall be a State authority for the purposes of this Part, and

(c) provide for the date from which this Part shall have effect.

(2) Every order made by the Minister under subsection (1) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Entitlement to use a parking space.

531Q.— (1) An employee shall be regarded as having an entitlement to use a parking space for the purposes of this Part where any one or more of the following circumstances apply:

(a) the employee holds or has been issued with an authorisation in the form of a badge, permit, sticker or any other form of authorisation to use a parking space or is otherwise given permission (including oral permission) to use a parking space;

(b) the employee holds or has been issued with any form or means of access to a parking space;

(c) the employee has been allocated a dedicated parking space;

(d) the employee has been allocated a parking space on a shared basis or other similar arrangement;

(e) the availability of a parking space to the employee is on the basis of a system commonly known as on a first-come — first-served basis.

(2) (a) An employee shall not be regarded as having an entitlement to use a parking space for the purposes of this Part where the use of the space by the employee arises as a result of authorisation, permission or access occasionally given to the employee and the total number of days—

(i) covered by such authorisation, permission or access, and

(ii) of actual use of the space by the employee,

is not more than 10 days in a year of assessment.

(b) For the purposes of paragraph (a)—

(i) authorisation, permission or access given for part of a day shall be regarded as given for a full day, and

(ii) use of a parking space for part of a day shall be regarded as use of the space for a full day.

(3) An employee shall cease to be regarded as having an entitlement to use a parking space for the purposes of this Part where—

(a) (i) he or she disclaims, in writing or in an electronic format, entitlement to use a parking space, as referred to in subsection (1), or

(ii) the entitlement to use a parking space lapses or such entitlement is withdrawn,

(b) if relevant, the employee returns to the employer, or to the person who provides the parking space as appropriate, either or both the form of authorisation and the form or means of access which he or she holds or which was issued to him or her, and

(c) the employee ceases to use a parking space provided directly or indirectly by his or her employer.

(4) For the purposes of subsection (1)(a), permission to use a parking space shall be regarded as given to an employee where an employer enters into an arrangement or agreement with the employee or any other person whereby a parking space is provided for the use of the employee.

Provision of parking space by employer.

531R.— For the purposes of this Part, a parking space shall be regarded as provided directly or indirectly by an employer for the use of an employee where—

(a) the employer provides the parking space on, at or in any premises which is owned or occupied by the employer,

(b) the parking space is provided on, at or in any premises which is owned or occupied by a person connected (within the meaning of section 10) with the employer,

(c) the employer enters into an arrangement or agreement with an employee or any other person whereby a parking space is provided for the use of that employee or any other employee of the employer, or

(d) in the case of a public sector employee to whom paragraph (a), (b) or (c) does not apply, the person who provides the parking space to that employee is funded or part funded directly or indirectly by the employer of that employee.

Exemption for certain persons.

531S.— The parking levy provided for under this Part shall not apply—

(a) to an employee who is the holder of a valid disabled person’s parking permit,

(b) to the use of a parking space by an employee of a State or civil emergency service where the use of that space relates solely to a response, required of the employee by the employer, to an emergency situation, or

(c) to occasional use of a parking space by a retired person where that person’s former employer or, where section 531R(d) applies, the person who provided the parking space to the retired person before he or she retired, continues to make a parking space available to him or her.

Charge to parking levy.

531T.— Subject to section 531S, where—

(a) an employee has an entitlement to use a parking space in an urban area for the parking of a car, and

(b) such space is provided directly or indirectly by his or her employer,

then a tax to be known as ‘parking levy’ shall be charged, levied and paid in accordance with this Part in relation to such entitlement.

Rate of charge to parking levy.

531U.— (1) Subject to the subsequent provisions of this section, the amount of the parking levy in relation to each employee—

(a) shall be €200 in relation to each year of assessment, or

(b) in relation to the year of assessment in which this Part takes effect, shall be €200 reduced to an amount which bears the same proportion to €200 as the period consisting of the part of that year in which this Part has effect bears to the full year of assessment.

(2) Where an employee has been allocated a parking space on a shared basis, or other similar arrangement including on a first-come — first-served basis as referred to in section 531Q(1)(e), the amount of the parking levy shall—

(a) where the ratio of employees sharing a parking space to a space is less than two to one, be the appropriate amount referred to in subsection (1), and

(b) where the ratio of employees sharing a parking space to a space is two to one or more than two to one, be reduced to 50 per cent of the appropriate amount referred to in subsection (1).

(3) Where the normal pattern of work required of an employee involves the employee working only a portion of the full working week or year, then the amount of the parking levy determined in accordance with subsection (1) or (2) shall be reduced to an amount which bears the same proportion to the amount so determined as the portion of the full working week or year required to be worked by the employee bears to the full working week or year, subject to the amount of the levy being not less than 50 per cent of the amount determined in accordance with subsection (1) or (2) as the case may be.

(4) Where an employee’s entitlement to use a parking space applies for part of a year of assessment or part of the period referred to in subsection (1)(b), then the amount of the parking levy determined in accordance with subsection (1), (2) or (3), as the case may be, shall be reduced to an amount which bears the same proportion to the amount so determined as the part of the year or period during which the employee has such entitlement bears to the full period or year.

(5) An employee’s entitlement to use a parking space for the period during which the employee is on maternity leave and for a period of 10 weeks immediately prior to the date the employee commences such leave shall be disregarded for the purposes of subsection (4).

(6) Where the pattern of work required of an employee involves starting or finishing work after 9 o’clock in the evening or before 7 o’clock in the morning, that part of a year of assessment or that part of the period referred to in subsection (1)(b) in which such pattern of work applies shall be disregarded for the purposes of subsection (4).

Deduction of levy by employer.

531V.— (1) Where section 531T applies, an employer shall—

(a) deduct the amount of the parking levy, determined in accordance with section 531U, from the employee’s net emoluments for the period during which he or she has an entitlement to use a parking space and such deduction shall be made at a time and frequency which corresponds with the payment of the employee’s emoluments,

(b) be accountable for the amount of the parking levy deductible, and liable to pay that amount to the Revenue Commissioners as if it were an amount of income tax deductible in accordance with the PAYE Regulations, and

(c) remit to the Collector-General the total of all amounts of parking levy which the employer was liable to deduct from employees and such remittance shall be made at the same time and in the same manner as the employer is required under Regulation 28 or, as the case may be, under Regulation 29 of the PAYE Regulations to remit amounts of tax which the employer was liable to deduct from emoluments paid to employees.

(2) Where an amount of parking levy is, in accordance with this Part, deducted by an employer from the net emoluments of an employee—

(a) the employee shall allow such deduction on the receipt of the residue of the net emoluments, and

(b) the employer shall be acquitted and discharged of such amount as is represented by the deduction, as if the amount had actually been paid.

No relief for any payment in relation to parking levy.

531W.— Notwithstanding any provision of the Tax Acts, no sum shall—

(a) in the case of an employee, be allowed to the employee in relation to a parking levy payable under this Part—

(i) as a deduction under section 114, or

(ii) as a credit against any liability arising under the Tax Acts,

or

(b) in the case of an employer—

(i) be deducted in computing the amount of profits or gains chargeable to tax under Schedule D, or

(ii) be included in computing any expenses of management in respect of which a deduction may be claimed under section 83 or 707,

in relation to any amount which is paid by the employer to an employee in compensation for, or in re-imbursement of, the payment of a parking levy under this Part.

Records and regulations.

531X.— (1) Subject to subsection (2), where a parking space in an urban area to which this Part applies is provided directly or indirectly by an employer for the use of one or more employees for the parking of a car, the employer shall in respect of each year of assessment and the period referred to in section 531U(1)(b) keep in a permanent form a full and true record of the following:

(a) details of the locations at which each such parking space is provided,

(b) the name and personal public service number of each employee who has an entitlement to use a parking space,

(c) where section 531Q(3) applies, the name and personal public service number of each employee who ceased to have an entitlement to use a parking space and the date from which the entitlement ceased,

(d) where section 531S(a) applies, the name and personal public service number of each employee to which that section applies, and

(e) such other records specified in regulations by the Revenue Commissioners as may reasonably be required by them for the purposes of this Part.

(2) Where a parking space in an urban area to which this Part applies is provided by a person referred to in section 531R(d) for the use of one or more public sector employees for the parking of a car, that person shall in respect of each year of assessment and the period referred to in section 531U(1)(b)—

(a) keep in a permanent form a full and true record of the information referred to in paragraphs (a) to (e) of subsection (1), and

(b) (i) transmit in sufficient time to the employer of such employee or employees, such details as are necessary for the employer to comply with the requirements of section 531V(1), and

(ii) make a record of the details so transmitted.

(3) The Revenue Commissioners may make regulations for the purposes of the administration and implementation of this Part and without prejudice to the generality of the foregoing, such regulations may include provision in relation to such records as are referred to in subsection (1)(e) and such matters as are referred to in subsection (2)(b).

(4) For the purposes of this Part, the definition of ‘records’ in section 903 shall be treated as including the records referred to in subsections (1) and (2) and the provisions of section 903 shall accordingly apply to such records.

Payment, collection and recovery.

531Y.— (1) The parking levy provided for under this Part is placed under the care and management of the Revenue Commissioners and section 849 shall apply as if ‘parking levy’ were included in the definition of ‘tax’ in that section.

(2) The provisions of Chapter 4 of Part 42 and Part 5 of the PAYE Regulations shall, with any necessary modifications, apply to the payment, collection and recovery of the parking levy as they apply to the payment, collection and recovery of income tax in accordance with the said Part 42 and those Regulations and without prejudice to the generality of the foregoing—

(a) the definition of ‘the regulations’ in section 989 applies as if it included a reference to the provisions of this Part, and

(b) sections 989, 990, 991 and 991A apply as if the respective references to income tax or tax in those sections included a reference to the parking levy payable under this Part.

(3) In any case of underpayment or overpayment of the parking levy to the Collector-General by an employer, payment of the amount not paid or repayment of the amount overpaid, as the case may be, shall be made to or by the Collector-General, as appropriate.

(4) In the case of an employer to whom section 531V(1) applies, the employer shall include the following details on the form which is required to be sent to the Collector-General under Regulation 31 of the PAYE Regulations:

(a) the total number of employees to whom the parking levy applied in the year of assessment, and

(b) the total amount of parking levy deducted by the employer from employees in the year of assessment.

Penalties.

531Z.— (1) Where an employer fails to—

(a) deduct or remit the parking levy in accordance with section 531V(1),

(b) keep records in accordance with section 531X(1), or

(c) include the details referred to in paragraphs (a) and (b) of section 531Y(4) on the form which is required to be sent to the Collector-General under Regulation 31 of the PAYE Regulations,

that person shall be liable to a penalty of €3,000.

(2) Where a person to whom section 531X(2) applies fails to—

(a) keep records in accordance with paragraphs (a) and (b)(ii) of that section, or

(b) provide details to an employer in accordance with paragraph (b)(i) of that section,

that person shall be liable to a penalty of €3,000.

(3) Subsections (3) and (4) of section 987 apply to the penalties provided for in subsections (1) and (2) of this section as they apply to the penalties provided for in section 987.”,

(b) in section 1002, in the definition of “the Acts”, by inserting the following after paragraph (vii):

“(viii) Part 18B,”,

(c) in section 1006, in the definition of “the Acts”, by inserting the following after paragraph (e):

“(f) Part 18B,”,

(d) in section 1006A, in the definition of “Acts”, by inserting the following after paragraph (h):

“(i) Part 18B,”,

and

(e) in section 1078, in the definition of “the Acts”, by inserting the following after paragraph (h):

“(i) Part 18B,”.

(2) The Provisional Collection of Taxes Act 1927 is amended in the definition of “tax” in section 1 by inserting “and parking levy” after “stamp duties”.