Finance Act 2005

Amendment of Part 9 (levies) of Principal Act.

128.—(1) Part 9 of the Principal Act is amended—

(a) in section 123—

(i) in subsection (1)—

(I) by substituting the following for the definition of “accounting period”:

“ ‘accounting period’ has the same meaning as it has for the purposes of section 27 of the Taxes Consolidation Act 1997 , but where such accounting period commences after 31 December 2004 and ends after 31 December 2005, it shall be deemed, for the purposes of this section, to be an accounting period ending on 31 December 2005;”,

(II) by substituting the following for the definition of “bank”:

“ ‘bank’ includes—

(a) a person who holds a licence granted under section 9 of the Central Bank Act 1971 , and

(b) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 ( S.I. No. 395 of 1992 )) and a financial institution within that meaning;”,

and

(III) by substituting the following for the definition of “due date”:

“ ‘due date’, in relation to an accounting period, means—

(a) in the case of any year prior to the year 2005, the date of the end of the accounting period ending in that year, and

(b) in the case of the year 2005, the date of the end of the accounting period or each of them, if there is more than one, ending in that year;”,

(ii) by substituting the following for subsection (2):

“(2) A promoter shall, in each year, within one month of the due date, in relation to each accounting period, deliver to the Commissioners a statement in writing showing the number of cash cards and combined cards issued at any time by the promoter and which are valid at any time during the accounting period.”,

(iii) by substituting the following for subsection (4):

“(4) Subject to subsection (4A), there shall be charged on every statement delivered in pursuance of subsection (2)—

(a) a stamp duty at the rate of €10 or, where the statement is in respect of an accounting period deemed under this section to end on 31 December 2005, a rate calculated by multiplying one-twelfth of €10 by the number of months in the accounting period, in respect of each cash card, and

(b) a stamp duty at the rate of €20 or, where the statement is in respect of an accounting period deemed under this section to end on 31 December 2005, a rate calculated by multiplying one-twelfth of €20 by the number of months in the accounting period, in respect of each combined card,

included in the number of cash cards and combined cards shown in the statement.

(4A) Notwithstanding subsection (4)—

(a) in a case to which subsection (4)(a) applies, the rate calculated by multiplying one-twelfth of €10 by the number of months in an accounting period shall be—

(i) €2.50, where there are 3 months in the accounting period, and

(ii) €7.50, where there are 9 months in the accounting period,

and

(b) in a case to which subsection (4)(b) applies, the rate calculated by multiplying one-twelfth of €20 by the number of months in an accounting period shall be—

(i) €5, where there are 3 months in the accounting period, and

(ii) €15, where there are 9 months in the accounting period.”,

and

(iv) by inserting the following subsection after subsection (11):

“(12) This section does not apply to any statement that falls to be delivered by a promoter in respect of a due date falling after 31 December 2005.”.

(b) in section 123A—

(i) in subsection (1)—

(I) by substituting the following for the definition of “accounting period”:

“ ‘accounting period’ has the same meaning as it has for the purposes of section 27 of the Taxes Consolidation Act 1997 , but where such accounting period commences after 31 December 2004 and ends after 31 December 2005, it shall be deemed, for the purposes of this section, to be an accounting period ending on 31 December 2005;”,

(II) by substituting the following for the definition of “bank”:

“ ‘bank’ includes—

(a) a person who holds a licence granted under section 9 of the Central Bank Act 1971 , and

(b) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 ( S.I. No. 395 of 1992 )) and a financial institution within that meaning;”,

and

(III) by substituting the following for the definition of “due date”:

“ ‘due date’, in relation to an accounting period, means—

(a) in the case of the year 2002, the date of the end of the accounting period ending in that year, where that date is on or after 5 December 2002,

(b) in the case of the year 2003 and 2004, the date of the end of the accounting period ending in that year, and

(c) in the case of the year 2005, the date of the end of the accounting period, or each of them if there is more than one, ending in that year;”,

(ii) by substituting the following for subsection (2):

“(2) A promoter shall, within 2 months of the due date, in relation to each accounting period falling in the year 2002 and, within one month of the due date falling in each of the years 2003, 2004 and 2005, deliver to the Commissioners a statement in writing showing the number of debit cards issued at any time by the promoter and which are valid—

(a) in the case of the year 2002, at any time during the period from 5 December 2002 to the due date,

(b) in the case of the year 2003, at any time during the accounting period ending in that year but not before 5 December 2002 where that date falls within the accounting period, and

(c) in the case of the year 2004 and 2005, at any time during the accounting period.”,

(iii) by substituting the following for subsection (4):

“(4) Subject to subsection (4A), there shall be charged on every statement delivered in pursuance of subsection (2) a stamp duty at the rate of €10 or, where the statement is in respect of an accounting period deemed under this section to end on 31 December 2005, a rate calculated by multiplying one-twelfth of €10 by the number of months in the accounting period, in respect of each debit card included in the number of cards shown in the statement.

(4A) Notwithstanding subsection (4), the rate calculated by multiplying one-twelfth of €10 by the number of months in an accounting period shall be—

(a) €2.50, where there are 3 months in the accounting period, and

(b) €7.50, where there are 9 months in the accounting period.”,

and

(iv) by inserting the following subsection after subsection (11):

“(12) This section does not apply to any statement that falls to be delivered by a promoter in respect of a due date falling after 31 December 2005.”.

(c) by inserting the following section after section 123A:

“Cash, combined and debit cards.

123B.—(1) In this section—

‘bank’ includes—

(a) a person who holds a licence granted under section 9 of the Central Bank Act 1971 , and

(b) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 ( S.I. No. 395 of 1992 )) and a financial institution within that meaning;

‘building society’ means a building society which stands incorporated, or deemed by section 124 (2) of the Building Societies Act 1989 , to be incorporated, under that Act and includes a company registered under section 106 of that Act;

‘card account’ means an account maintained by a promoter to which—

(a) amounts of cash obtained by a person by means of a cash card are charged,

(b) amounts in respect of goods, services or cash obtained by a person by means of a combined card are charged, or

(c) amounts in respect of goods, services or cash obtained by a person by means of a debit card are charged;

‘cash card’ means a card, not being a combined card, issued by a promoter to a person having an address in the State, by means of which cash may be obtained by the person from an automated teller machine;

‘combined card’ means a cash card which also contains the functions of a debit card;

‘debit card’ means a card, not being a combined card, issued by a promoter to a person having an address in the State, by means of which goods, services or cash may be obtained by the person and amounts in respect of the goods, services or cash may be charged to the card account;

‘promoter’ means a bank or a building society.

(2) A promoter shall, within one month of the end of each year, commencing with the year 2006, deliver to the Commissioners a statement in writing showing the number of cash cards, combined cards and debit cards issued at any time by the promoter and which are valid on 31 December in that year.

(3) Notwithstanding subsection (2)—

(a) if the cash card, combined card or debit card is not used at any time during a year, or

(b) if the cash card, combined card or debit card is issued in respect of a card account—

(i) which is a deposit account, and

(ii) the average of the daily positive balances in the account does not exceed €12.70 during that year,

then it shall not be included in the statement relating to that year.

(4) There shall be charged on every statement delivered in pursuance of subsection (2) a stamp duty—

(a) at the rate of €10 in respect of each cash card and each debit card, and

(b) at the rate of €20 in respect of each combined card,

included in the number of cards shown in the statement.

(5) The duty charged by subsection (4) on a statement delivered by a promoter pursuant to subsection (2) shall be paid by the promoter on delivery of the statement.

(6) There shall be furnished to the Commissioners by a promoter such particulars as the Commissioners may deem necessary in relation to any statement required by this section to be delivered by the promoter.

(7) In the case of failure by a promoter to pay any duty required to be paid in accordance with this section, the promoter shall be liable to pay, by means of a penalty, in addition to the duty, interest on that duty, calculated in accordance with section 159D, for the period commencing on the date the duty was so required to be paid and ending on the date the duty was paid and also, by means of a further penalty, a sum of €380 for each day in that period and each penalty shall be recoverable in the same manner as if the penalty were part of the duty.

(8) The delivery of any statement required by subsection (2) may be enforced by the 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.

(9) A promoter shall be entitled to charge to the card account the amount of stamp duty payable in respect of a cash card, combined card or debit card by virtue of this section and may apply the terms and conditions governing that account to interest on that amount.

(10) An account, charge card, company charge card or supplementary card within the meaning, in each case, assigned to it by section 124 and which attracts the payment of the stamp duty payable by virtue of that section shall not attract the payment of the stamp duty payable by virtue of this section.”,

and

(d) in section 124—

(i) in subsection (1)—

(I) in paragraph (a)—

(A) by inserting the following definitions after the definition of “account”:

“ ‘account holder’ means the person in whose name an account is maintained by a bank;

‘bank’ includes—

(i) a person who holds a licence granted under section 9 of the Central Bank Act 1971 , and

(ii) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 ( S.I. No. 395 of 1992 )) and a financial institution within that meaning;”,

(B) in the definition of “credit card” by substituting “to the account;” for “to the account.”, and

(C) by inserting the following definitions after the definition of “credit card”:

“ ‘letter of closure’, in relation to an account, means a letter, in such form as the Commissioners may specify, issued during a relevant period by a bank to an account holder in respect of an account which has been closed during the relevant period confirming that the account holder has, during the relevant period, accounted for the amount of stamp duty—

(i) which the bank is required to pay in respect of the account for the relevant period, or

(ii) which another bank (not being a branch of the same bank) is required to pay for the relevant period in respect of another account which has been closed during the relevant period;

‘relevant period’ means a 12 month period ending on 1 April in any year commencing with the 12 month period ending on 1 April 2006;

‘replacement account’ means an account that is opened and maintained by a bank in the name of an account holder during a relevant period—

(i) where an account in the name of the account holder was, during the relevant period, previously closed by the bank, or

(ii) where the account holder has furnished to the bank during the relevant period a letter of closure issued by another bank (not being a branch of the same bank) in relation to an account in the name of the account holder which was closed during the relevant period.”,

(II) by substituting the following for paragraph (b):

“(b) A bank shall, within 3 months of the end of each relevant period, deliver to the Commissioners a statement in writing showing in respect of accounts maintained by the bank at any time during the relevant period—

(i) the number of accounts that are replacement accounts, and

(ii) the number of accounts that are not replacement accounts.”,

and

(III) by inserting the following after paragraph (c):

“(d) Notwithstanding paragraph (c), where a bank maintains a replacement account at any time during a relevant period, the bank shall be exempt from stamp duty on that replacement account.

(e) A bank shall not issue a letter of closure during a relevant period in respect of an account that has been closed during the relevant period where—

(i) the account holder has not accounted for the amount of stamp duty which the bank is required to pay in respect of the account for the relevant period, or

(ii) the bank is not in possession of a letter of closure, in respect of another account closed during the relevant period, received from the account holder during the relevant period.

(f) Where a bank treats an account as a replacement account by virtue of the account holder furnishing a letter of closure, the bank shall not, by virtue of that letter, treat any other account as a replacement account.

(g) A bank shall not issue more than one original letter of closure in respect of an account and may only issue a duplicate letter of closure to an account holder to whom an original letter of closure issued where the bank is satisfied that the original letter of closure has been lost or destroyed and where such letter states that it is a duplicate of an original letter of closure.”,

(ii) in subsection (2)—

(I) in paragraph (a)—

(A) by inserting the following definition after the definition of “account”:

“ ‘account holder’ means the person in whose name an account is maintained by a promoter;”,

(B) by inserting the following definition after the definition of “charge card”:

“ ‘charge card’, in relation to an account, means a charge card used to obtain goods, services or cash, amounts in respect of which are charged to the account;”,

and

(C) by inserting the following definitions after the definition of “company charge card”:

“ ‘letter of closure’, in relation to an account, means a letter, in such form as the Commissioners may specify, issued during a relevant period by a promoter to an account holder in respect of an account which has been closed during the relevant period—

(i) confirming that the account holder has, during the relevant period, accounted for the amount of stamp duty which the promoter is required to pay in respect of charge cards, in relation to the account, for the relevant period and stating the number of cards in respect of which the promoter is so liable to pay, and

(ii) confirming, where it is the case, that the account holder has, during the relevant period, accounted for the amount of stamp duty which another promoter (not being a branch of the same promoter) is required to pay for the relevant period in respect of charge cards in relation to another account which has been closed during the relevant period and stating the number of cards in respect of which that other promoter is so liable to pay;

‘relevant period’ means a 12 month period ending on 1 April in any year commencing with the 12 month period ending on 1 April 2006;

‘replacement account’ means an account that is opened and maintained by a promoter in the name of an account holder during a relevant period—

(i) where an account (in this section referred to as an ‘original account’) in the name of the account holder was, in the relevant period, previously closed by the promoter, or

(ii) where the account holder has furnished, during the relevant period, a letter of closure issued by another promoter (not being a branch of the same promoter) in relation to an account in the name of the account holder which was closed during the relevant period;

‘replacement card’ means a charge card in relation to a replacement account.”,

(II) by substituting the following for paragraph (b):

“(b) A promoter shall, within 3 months of the end of each relevant period, deliver to the Commissioners a statement in writing showing in respect of the charge cards issued or renewed by the promoter and expressed to be valid at any time during the relevant period—

(i) the number of cards that are replacement cards, and

(ii) the number of cards that are not replacement cards.”,

and

(III) by inserting the following after paragraph (c):

“(d) Notwithstanding paragraph (c), stamp duty shall only be chargeable on replacement cards in relation to a replacement account maintained by a promoter at any time during a relevant period—

(i) where the replacement account replaces an account maintained by the same promoter, to the extent that the number of such charge cards, in relation to the account, exceeds the number of charge cards in relation to the original account, or

(ii) where the replacement account replaces an account maintained by another promoter, to the extent that the number of such charge cards, in relation to the account, exceeds the aggregate number of charge cards stated in the letter of closure in relation to that other account.

(e) A promoter shall not issue a letter of closure during a relevant period in respect of an account that has been closed during the relevant period where the account holder has not accounted for the amount of stamp duty which the promoter is required to pay in respect of the charge cards to which the account relates, for the relevant period.

(f) Where a promoter treats an account as a replacement account by virtue of the account holder furnishing a letter of closure, the promoter shall not, by virtue of that letter, treat any other account as a replacement account.

(g) A promoter shall not issue more than one original letter of closure in respect of an account and may only issue a duplicate letter of closure to an account holder to whom the original letter of closure issued where the promoter is satisfied that the original letter of closure has been lost or destroyed and where such duplicate letter states that it is a duplicate of an original letter of closure.”,

(iii) in subsection (5), in subparagraphs (i) and (ii) of paragraph (a) by substituting “1 April” for “the 1st day of April”, and

(iv) by inserting the following subsections after subsection (5):

“(5A) A bank or a promoter is required to retain any original letter of closure or any duplicate of such letter received from an account holder for a period of 4 years from the date of receipt of such letter.

(5B) A letter of closure, in relation to an account, shall only be issued to one person in whose name the account is maintained notwithstanding that there is more than one such person.”.

(2) Paragraph (d) of subsection (1) has effect as respects accounts maintained by a bank or, as the case may be, a promoter after 1 April 2005.