Finance Act, 1971

Amendment of section 17 of Finance Act, 1970.

21.— (1) (a) Section 17 of the Finance Act, 1970 , is hereby amended by the insertion in subsection (2) after paragraph (a) of the following paragraph:

“(aa) a local authority, housing association, housing trust or housing society, or”.

(b) This subsection shall be deemed to have come into operation on the 6th day of April, 1971, but nothing in this subsection shall impose an obligation or liability on a local authority, housing association, housing trust or housing society in relation to the deduction of tax or the payment of tax to the Collector in respect of any payment made by it before the passing of this Act unless a deduction from the payment, which if made after the passing of this Act would be a valid deduction of tax, was made by it before such passing.

(c) Where a payment of the kind specified in paragraph (b) is made on or after the 6th day of April, 1971, without a deduction of the kind therein specified, the inspector may, by notice in a form prescribed by the Revenue Commissioners, require the body that made the payment to furnish to him, within one month after the date on which the notice is given to the body, particulars of the payment.

(d) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column (2) thereof of “section 21 (1) (c) of the Finance Act, 1971”.

(2) Section 17 of the Finance Act, 1970 , is hereby further amended by the insertion of the following subsections after subsection (6):

“(6A) Where an amount of tax which a person who is or is deemed to be a principal of the kind referred to in subsection (2) is liable under this section and any regulations under subsection (5) to pay to the Collector is not so paid, simple interest on the amount shall be paid by the person to the Collector and such interest shall be calculated from the date on which the amount became due for payment and at a rate of one per cent. for each month or part of a month during which the amount remains unpaid.

(6B) Subsection (6A) shall apply to tax recoverable from a person by virtue of a notice under Regulation 12 (1) of the Income Tax (Construction Contracts) Regulations, 1971 , as if the tax were tax which the person was liable under the said Regulations to remit for—

(a) the income tax month (within the meaning of the said Regulations) during which the period of fourteen days from the service of the notice expired, or

(b) if it is later than the month specified in paragraph (a) of this subsection, the income tax month (within the meaning of the said Regulations) in which the appeal (if any) provided for by Regulation 12 (2) of the said Regulations in relation to the tax was determined by agreement or otherwise.

(6C) The provisions of every enactment and of the Income Tax (Construction Contracts) Regulations, 1971 , which apply to the recovery of any amount of tax which a principal of the kind referred to in subsection (2) is liable under this section and the said Regulations to pay to the Collector shall apply to the recovery of any amount of interest payable on that tax as if the said amount of interest were a part of that tax.”.

(3) Interest shall not begin to run under this section from any date prior to the date of the passing of this Act.