S.I. No. 466/2003 - Finance Act 2003 (Section 146) (Commencement) Order 2003

I, Charlie McCreevy, Minister for Finance, in exercise of the powers conferred on me by section 146 (2) of the Finance Act 2003 (No. 3 of 2003), hereby order as follows:

1.         This Order may be cited as the Finance Act 2003 (Section 146) (Commencement Order 2003.

2.         The 1st day of October 2003 is appointed as the day on which section 146 of the Finance Act 2003 (No. 3 of 2003) comes into operation.

(This note is not part of the Instrument and does not purport to be a legal interpretation)

Explanatory Note

This Order appoints the coming into effect of paragraphs (a), (b), (c) and (d) of subsection (1 of section 146 of the Finance Act 2003 on 1 October 2003.

Paragraph (a) of subsection (1) substitutes a new section 25 of the Capital Acquisitions Tax Consolidation Act 2003 . The new section imposes penalties based on the tax due in a tax return in respect of the annual 1% charge imposed on the property in certain discretionary trusts where a person, fraudulently or negligently, fails to submit a return in respect of that 1% charge to the Revenue Commissioners.

Paragraph (b) of subsection (1) inserts a new section (section 45A) into the Capital Acquisitions Tax Consolidation Act 2003 . The new section imposes an obligation on taxpayers to retain records in respect of a gift or an inheritance for a period of 6 years after the valuation date of the gift or inheritance where the taxpayer has complied with their obligations to file on time in accordance with section 46 (2) of the Capital Acquisitions Tax Consolidation Act 2003 . Otherwise, they must retain records for a period of 6 years from the date that a return, additional return or statement is received by the Revenue Commissioners.

Paragraph (c) of subsection (1) inserts a new section (section 46A) into the Capital Acquisitions Tax Consolidation Act 2003 . The new section introduces an expression of doubt facility in relation to capital acquisitions tax returns. This enables a taxpayer to express doubt on a technical point, without being penalised with interest, if the taxpayer's view on the tax treatment of the point at issue is not accepted.

Paragraph (d) of subsection (1) inserts 2 new subsections (subsections (1A) and (5A)) into section 58 of the Capital Acquisitions Tax Consolidation Act 2003 . The new subsections impose penalties based on the tax due in a tax return where a person, fraudulently or negligently, fails to submit a capital acquisitions tax return to the Revenue Commissioners.