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Withholding tax relating to certain dividends and interest.
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38.— (1) The Principal Act is amended—
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(a) in section 33(1) by deleting “shall be charged by the Commissioners designated for that purpose by the Income Tax Acts, and”,
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(b) in section 64(5) by substituting the following for paragraph (c):
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“(c) if in paragraph 1A of Part 1 of Schedule 2, clauses (1) and (2) of the definition of ‘chargeable person’ were deleted.”,
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(c) by deleting section 853,
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(d) in Part 1 of Schedule 2 by inserting the following after paragraph 1:
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“1A. In this Schedule—
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‘chargeable person’ means any of the following:
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(a) a person who is entrusted with the payment of any dividends which are payable to any persons in the State out of any public revenue;
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(b) a person in the State who is entrusted with the payment of any dividends to which Chapter 2 of Part 4 applies;
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(c) a banker or other person in the State who obtains payment of any dividends in such circumstances that the dividends are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;
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(d) a banker in the State who sells or otherwise realises coupons in such manner that the proceeds of the sale or realisation are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;
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(e) a dealer in coupons in the State who purchases coupons in such manner that the price paid on the purchase is chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;
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‘specified dividend income’ means—
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(a) the amount of dividends which are payable to any person in the State out of any public revenue,
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(b) the amount of dividends to which Chapter 2 of Part 4 applies,
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(c) the amount of dividends received by a chargeable person in the State in such circumstances that the dividends are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D,
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(d) the proceeds of sale or realisation of coupons where those proceeds are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D, or
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(e) the price paid on purchase of coupons where such price paid on purchase is chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D.”,
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(e) by deleting Parts 2 and 3 of Schedule 2,
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(f) by substituting the following for Part 4 of Schedule 2—
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“PART 4
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Public revenue dividends, dividends to which Chapter 2 of Part 4 applies, proceeds of coupons and price paid on purchase of coupons
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14. (1) Subject to Chapter 2 of Part 3, every chargeable person shall, on making a payment of specified dividend income, deduct and retain a sum representing the amount of the income tax due on that income and pay that income tax on behalf of the person entitled to that income.
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(2) The payment of the income tax by the chargeable person shall be deemed to be a payment of the income tax by the persons entitled to the specified dividend income and shall be allowed by those persons on the receipt of the residue of the dividends.
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15. (1) Every chargeable person who makes a payment of specified dividend income shall make for each year of assessment within 20 days from the end of the year of assessment, a return to the Collector-General of that specified dividend income and of the income tax in relation to that specified dividend income.
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(2) The income tax in relation to payments of specified dividend income which is required to be included in a return shall—
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(a) be due at the time by which the return is to be made, and
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(b) be paid by the chargeable person to the Collector-General,
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and the income tax so due shall be payable by the chargeable person without the making of an assessment; but income tax which has become so due may be assessed on the chargeable person (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.
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(3) A return due under this Schedule shall be in a form prescribed by the Revenue Commissioners and shall include a declaration to the effect that the return is correct and complete.
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16. (1) Where it appears to the inspector that there is any amount of income tax in relation to a payment of specified dividend income which should have been but was not included in a return or where the inspector is dissatisfied with any return, the inspector may make an assessment on the chargeable person to the best of his or her judgement. Any amount of income tax in relation to a payment of specified dividend income due under an assessment made by virtue of this subparagraph shall be treated for the purpose of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.
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(2) Any income tax assessed on a chargeable person under this Schedule shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under paragraph 15) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under paragraph 15.
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(3) On the determination of an appeal against an assessment under this Chapter, any income tax overpaid shall be repaid.
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17. Where any item has been incorrectly included in a return as income tax, the inspector may make such assessments, adjustments or set-offs as may in his or her judgement be required for securing that the resulting liabilities to tax, including interest on unpaid tax, whether of the chargeable person or any other person, are in so far as possible the same as they would have been if the item had not been so included.
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18. (1) A chargeable person shall keep records to distinguish the separate accounts of each of the persons entitled to receive specified dividend income and such records shall include—
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(a) the name and address of each such person,
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(b) particulars of the amounts payable, and
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(c) in the case of amounts payable out of any public revenue, particulars of the public revenue out of which each separate amount is payable.
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(2) Records kept by a chargeable person in accordance with subparagraph (1) shall—
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(a) be kept and retained by the chargeable person for a period of 6 years from the day on which the payment was made, and
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(b) on being required by notice in writing given to the chargeable person by an inspector, be made available to the inspector within the time specified in the notice.
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19. The provisions of section 898N shall apply with any necessary modifications as respects powers of an authorised officer as if a reference in that section to—
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(a) books and records were a reference to books and records kept for the purposes of this Schedule,
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(b) an authorised officer in that section were a reference to a Revenue officer as defined in section 898B, and
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(c) a reference in that section to a paying agent were a reference to a chargeable person.
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20. The provisions of the Income Tax Acts relating to—
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(a) assessments to income tax,
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(b) appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and
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(c) the collection and recovery of income tax,
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shall, in so far as they are applicable, apply to the assessment, collection and recovery of income tax due under this Schedule.
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21. (1) Any amount of income tax payable in accordance with this Schedule shall, without the making of an assessment, carry interest from the date when the amount becomes due and payable until payment for any day or part of a day during which the amount remains unpaid, at a rate of 0.0274 per cent.
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(2) Subsections (3) to (5) of section 1080 shall apply in relation to interest payable under subparagraph (1) as they apply in relation to interest payable under section 1080.
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(3) In its application to any income tax charged by any assessment made in accordance with this Schedule, section 1080 shall apply as if subsection (2)(b) of that section were deleted.
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22. Where—
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(a) income tax in respect of the proceeds of the sale or realisation of any coupon or in respect of the price paid on the purchase of any coupon has been accounted for under this Part by any banker or any dealer in coupons, and
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(b) the Revenue Commissioners are satisfied that the dividends payable on the coupons in relation to which such proceeds or such price arises have been subsequently paid in such manner that income tax has been deducted from such dividends under any of the provisions of this Schedule,
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then the income tax so deducted shall be repaid.”,
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and
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(g) in Part 5 of Schedule 2 by the deletion of paragraph 27.
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(2) This section shall come into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.
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