Finance Act, 1986

Levy on certain investment income.

93.—(1) In this section—

“assessable amount” means the total amount of income, without any deduction whatsoever, which arises to an insurer from investments during the year 1986 and, in the case of any investment sold in that year, includes the amount by which the sale price of the investment exceeds the price for which the investment was acquired:

Provided that, for the purposes of this definition, the total amount of income which arises shall not be reduced by any amount which is deducted or withheld from the income pursuant to any of the provisions of the Tax Acts and shall, in the case of any income which gives entitlement to a tax credit, include the amount of that tax credit;

“excluded property” means property derived from or representing—

(a) business carried on by the insurer outside the State;

(b) a pension fund within the meaning of section 50 of the Corporation Tax Act, 1976 ;

(c) industrial assurance business within the meaning of the Regulations;

(d) business relating to a society which is a credit union for the purposes of the Credit Union Act, 1966 ;

“first statement” means a statement in writing showing an amount which is estimated by the insurer to be the equivalent of 90 per cent. of the assessable amount for that insurer;

“insurer” means a person who is the holder of an authorisation within the meaning of the Regulations or is the holder of an assurance licence which is by those Regulations deemed to be an authorisation;

“investments” includes property of every description other than excluded property;

“Regulations” means the European Communities (Life Assurance) Regulations, 1984 (S.I. No. 57 of 1984);

“second statement” means a statement in writing showing an amount which is equal to the difference between the amount shown in the first statement and the assessable amount for the insurer.

(2) An insurer shall deliver to the Revenue Commissioners the first statement on or before the 1st day of November, 1986, and the second statement on or before the 30th day of June, 1987.

(3) There shall be charged on every first statement and on every second statement delivered in pursuance of subsection (2) a stamp duty of an amount equal to 9 per cent. of the amount shown in each such statement.

(4) The duty charged by subsection (3) on a first statement or a second statement delivered by an insurer pursuant to subsection (2) shall be paid by the insurer on the delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by an insurer such particulars and accounts as the Revenue Commissioners may deem necessary in relation to a first statement or a second statement required by this section to be delivered by the insurer and in relation to the assessable amount in respect of the insurer.

(6) In the case of failure by an insurer—

(a) to deliver a first statement required by subsection (2) within the time specified in that subsection,

(b) to pay, on the delivery of the first statement, an amount of duty which is not less than 85 per cent. of the duty payable in respect of the assessable amount,

(c) to deliver a second statement required by subsection (2) within the time specified in that subsection, or

(d) to pay the duty on the second statement on the delivery thereof,

the insurer shall be liable to pay by way of penalty, in addition to the duty, interest on the unpaid duty at the rate of 15 per cent. per annum from the date of the failure until the day on which the duty is paid.

(7) The delivery of any statement required by subsection (2) may be enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853 , in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(8) The stamp duty charged by this section shall not be allowed as a deduction for the purpose of the computation of any tax or duty under the care and management of the Revenue Commissioners payable by any person.