Finance Act, 1988

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Incentive to bring tax affairs up to date.

72.—(1) (a) In this section—

“the Acts” means—

(i) the Tax Acts,

(ii) Part V of the Finance Act, 1920 , and the enactments amending or extending that Part,

(iii) the Capital Gains Tax Acts, and

(iv) the Value-Added Tax Act, 1972 , and the enactments amending or extending that Act,

and any instruments made thereunder;

“arrears of tax” has the meaning assigned to it by subsection (2) (a);

“the due date” means, in relation to an amount of tax, the date on which a person becomes liable to interest under any of the specified provisions in respect of the late payment of that tax;

“estimate” means an estimate of tax made in accordance with the provisions of—

(i) section 7 or 8 of the Finance Act, 1968 ,

(ii) section 17 of the Finance Act, 1970 , and the regulations made thereunder, or

(iii) section 22 or 23 of the Value-Added Tax Act, 1972 ,

as the case may be;

“judgment” includes any order or decree;

“relevant interest” means interest (other than interest to which subsection (4) applies) payable in accordance with the specified provisions in respect of arrears of tax;

“the specified provisions” means any provision of the Acts pursuant to which a person may be liable—

(i) to interest in respect of unpaid tax including interest on an undercharge of tax which is attributable to fraud or neglect, or

(ii) to a fine or other penalty in respect of an offence;

“tax” means income tax, sur-tax, corporation profits tax, corporation tax, capital gains tax or value-added tax, as the case may be.

(b) The reference in subsection (2) (b) to an amount of tax due and payable shall, in a case where tax is assessed or estimated in an assessment or estimate against which an appeal has been made, be construed as a reference to the amount of tax which becomes due and payable on the determination of the appeal (within the meaning of section 550 (2A) (c) of the Income Tax Act, 1967 ) or, pending such determination, the tax as assessed or estimated.

(2) This section applies to a person—

(a) who had not paid or remitted before the due date tax (in this section referred to as “arrears of tax”) which was due and payable by him on or before the 31st day of December, 1987, in accordance with any provision of the Acts, including tax which would have been so due and payable if any return, statement or declaration (being a return, statement or declaration, as the case may be, which should have, but had not, been made by him in accordance with the Acts) had been so made and if that tax had been contained in an assessment or estimate made before that date,

and

(b) who, at any time during the period from the 27th day of January, 1988, to the 30th day of September, 1988—

(i) had paid or remitted all amounts of tax due and payable by him before or during that period in accordance with the provisions of the Acts including such arrears of tax as are referred to in paragraph (a), and

(ii) had paid or remitted all amounts he was liable to pay or remit before or during that period in accordance with the provisions of—

(I) the Social Welfare Acts, 1981 to 1987, and the regulations made thereunder,

(II) the Health Contributions Act, 1979 , and the regulations made thereunder,

(III) the Youth Employment Agency Act, 1981 , and the regulations made thereunder, and

(IV) section 16 of the Finance Act, 1983 .

(3) Notwithstanding any other provision of the Acts, in the case of a person to whom this section applies—

(a) relevant interest which is owed by him and is unpaid on the expiration of the period referred to in subsection (2) (b) shall be waived, and

(b) proceedings shall not be initiated or continued for the recovery of any fine or penalty which the person may have incurred, directly or indirectly, under any of the specified provisions in relation to arrears of tax, nor shall the Revenue Commissioners seek or demand from the person payment of any sum in lieu of such fine or penalty.

(4) This subsection applies to interest chargeable for any month, or part of a month, commencing on—

(a) the 1st day of March, 1988, in respect of tax which a person was liable to remit pursuant to—

(i) Chapter IV of Part V of the Income Tax Act, 1967 , and the regulations made thereunder or section 7 of the Finance Act, 1968 , and the said regulations, or which a person was liable to pay in accordance with the provisions of section 8 of the Finance Act, 1968 ,

(ii) section 17 of the Finance Act, 1970 , and the regulations made thereunder, or

(iii) the Value-Added Tax Act, 1972 , and the regulations made thereunder,

or

(b) the 1st day of May, 1988, in respect of tax other than tax to which paragraph (a) refers.

(5) Notwithstanding the provisions of subsection (3) or any other provision of the Acts, relevant interest which is paid by a person on or after the 27th day of January, 1988—

(a) if he is a person to whom this section applies, shall be refunded to him, or

(b) if he is not such a person, may be treated as a payment in respect of any amount (which, if he were such a person, would have been paid or remitted by him in accordance with subsection (2) (b)), if, but only if, he would by reason of such treatment, be a person to whom this section applies; and any relevant interest paid in excess of the amount aforesaid shall be refunded to him.

(6) This section shall not apply to any interest, fine or other penalty that—

(a) in the case of a fine or other penalty, is imposed by a court under any of the Acts,

(b) in the case of interest, is ordered by a court in any proceedings for the recovery of tax or interest to be paid by a person, or

(c) in any case, is included in a specified sum such as is referred to in subsection (2) (c) of section 23 of the Finance Act, 1983 , where, pursuant to an investigation by an inspector, the specified sum was accepted by the Revenue Commissioners on or before the 27th day of January, 1988.

(7) Section 23 (4) of the Finance Act, 1983 , is hereby amended by the insertion after paragraph (a) of the following paragraph:

“(aa) the provisions of section 72 of the Finance Act, 1988, apply, or”.