Finance Act, 2000

Amendment of section 8 (taxable persons) of Principal Act.

110.—Section 8 of the Principal Act is amended—

(a) in subsection (5):

(i) by the substitution of “goods or services, other than services of the kind referred to in paragraph (xiii) of the Sixth Schedule,” for “such goods or services”, and

(ii) by the substitution of “goods or services, other than services of the kind referred to in paragraph (xiii) of the Sixth Schedule.” for “goods or services.”,

(b) by the insertion of the following subsection after subsection (5):

“(5A) (a) Notwithstanding subsection (5), provision may be made by regulation for the cancellation, by the request of a person who supplies services of the kind referred to in paragraph (xiii) of the Sixth Schedule, of an election made by such person under this section and for the payment by such person to the Revenue Commissioners, in addition to any amount payable in accordance with subsection (5), of such an amount (hereafter referred to in this subsection as the ‘cancellation amount’), as shall be determined in accordance with paragraph (b), as a condition of cancellation and the cancellation amount shall be payable as if it were tax due in accordance with section 19 for the taxable period in which the cancellation comes into effect.

(b) (i) Where the person referred to in paragraph (a)—

(I) was entitled to deduct tax in accordance with section 12 in respect of the acquisition, purchase or development of immovable goods used by that person in the course of a supply of services of a kind referred to in paragraph (xiii) of the Sixth Schedule, or

(II) would be entitled to deduct tax in accordance with section 12 in respect of the acquisition, as a result of a transfer to that person, of immovable goods used by that person in the course of a supply of services of a kind referred to in paragraph (xiii) of the Sixth Schedule, if that tax had been chargeable but for the application of the provisions of section 3(5)(b)(iii) on that transfer,

then, in respect of each such acquisition, purchase or development, an amount (hereafter referred to in this subsection as the ‘adjustment amount’) shall be calculated in accordance with subparagraph (ii) and the cancellation amount shall be the sum of the adjustment amounts so calculated or, if there is only one such adjustment amount, that amount: but if there is no adjustment amount, the cancellation amount is nil.

(ii) The adjustment amount shall be determined by the formula—

A x (10 - B)

10

where—

A is—

(I) the amount of tax deductible in respect of the said acquisition, purchase or development of the said immovable goods, or

(II) the amount of tax that would be deductible in respect of the said acquisition of the said immovable goods if the provisions of section 3(5)(b)(iii) had not applied to the transfer of those immovable goods,

and

B is the number of full years for which the said goods were used by the person in the course of the supply of services of a kind referred to in paragraph (xiii) of the Sixth Schedule: but if the said number of full years is in excess of 10, such adjustment amount shall be deemed to be nil.

(c) For the purposes of paragraph (b) a full year shall be any continuous period of 12 months.”,

and

(c) in subsection (6) (inserted by the Act of 1992) by the insertion after “subsection (5)” of “of subsection (5A)”.