Finance Act 2022

Defective concrete products levy

99. (1) The Principal Act is amended—

(a) by the insertion of the following Part after Part 18D:

“PART 18E

Defective Concrete Products Levy

Interpretation (Part 18E)

531AAG. In this Part—

‘accounting period’ means the period from 1 September 2023 to 31 December 2023 and thereafter a period of 6 months, the first such period beginning on 1 January 2024;

‘chargeable person’ means a person who makes the first supply of a concrete product;

‘chargeable supply’, in relation to a concrete product, means—

(a) the supply, within the meaning of paragraph (a) of the definition in this section of ‘supply’, of a concrete product by a person in the course of any business carried on in the State by the person,

(b) the supply, within the meaning of paragraph (b) of the said definition of ‘supply’, of a concrete product by a person in the State, or

(c) the supply, within the meaning of paragraph (c) of the said definition of ‘supply’, of a concrete product by a person in the State;

‘concrete’ means material formed by mixing cement, coarse and fine aggregate and water, with or without the incorporation of admixtures, additions or fibres, which develops its properties by hydration;

‘concrete product’ means—

(a) a product that—

(i) contains concrete, and

(ii) is of a type that is required to comply with the standard specified in column (1) of Schedule 36, the title description of which is set out in column (2) of that Schedule opposite the reference to that product type in column (1),

or

(b) concrete that is ready to pour and which is of a kind specified in paragraph 16(1) of Part 4 of Schedule 3 to the Value-Added Tax Consolidation Act 2010 and to which section 46(1)(c) of that Act applies;

‘connected persons’ has the same meaning as in section 10;

‘defective concrete products levy’ has the meaning assigned to it by section 531AAH;

‘electronic means’ has the same meaning as in section 917EA(1);

‘first supply’ means a chargeable supply of a concrete product where a previous chargeable supply of that concrete product has not occurred;

‘linking documents’ has the same meaning as in section 886(1);

‘records’ has the same meaning as in section 886(1);

‘self-assessment’ means an assessment by a chargeable person, or a person acting under the authority of a chargeable person, of the amount of defective concrete products levy payable by the chargeable person in respect of an accounting period;

‘supply’, in relation to a concrete product, means—

(a) the transfer of ownership of a concrete product by agreement or sale,

(b) the assignment of a concrete product for use in a business other than by way of a transfer by agreement or sale as referred to in paragraph (a), or

(c) the private use, or the use in the course of a business, in the State of a concrete product;

‘supply date’ means the date of the first supply of a concrete product.

Charging of defective concrete products levy

531AAH. (1) Subject to the provisions of this Part, there shall be charged, levied and paid a levy to be known as the ‘defective concrete products levy’ on the first supply of a concrete product by a chargeable person.

(2) The defective concrete products levy shall be charged on the supply date and the chargeable person shall be accountable for and liable to pay the defective concrete products levy charged.

(3) Where a chargeable person makes a first supply of a concrete product, being a supply within the meaning of paragraph (a) of the definition in section 531AAG of ‘supply’, the chargeable person shall, by electronic or other means, issue a document to the person to whom the supply was made stating—

(a) the amount of the defective concrete products levy that has been applied to the supply of the concrete product,

(b) the supply date of the concrete product subject to the defective concrete products levy, and

(c) the name of the chargeable person.

(4) Where a chargeable person makes a first supply of a concrete product, being a supply within the meaning of paragraph (b) or (c), as the case may be, of the definition in section 531AAG of ‘supply’, the chargeable person shall, by electronic or other means, make a record stating—

(a) the amount of the defective concrete products levy that has been applied to the supply of the concrete product, and

(b) the supply date of the concrete product subject to the defective concrete products levy.

(5) A chargeable person who fails to comply with subsection (3) or (4), as the case may be, shall be liable to a penalty, not exceeding €500 for each such failure.

(6) A chargeable person who fails to comply with subsection (2) shall be liable—

(a) to pay the defective concrete products levy not so charged, and

(b) to a penalty not exceeding €4,000.

Amount of defective concrete products levy

531AAI. The amount of defective concrete products levy to be charged in respect of the first supply of a concrete product shall be an amount represented by A in the formula—

A = B x C

where—

B is the open market value of the concrete product on the supply date, and

C is the rate of 5 per cent.

Obligation to register

531AAJ. (1) Every chargeable person shall, prior to making a first supply of a concrete product, register with the Revenue Commissioners as a chargeable person for the purposes of this Part.

(2) For the purposes of subsection (1), each chargeable person shall provide the Revenue Commissioners with the following particulars for the purposes of registering such person as a chargeable person:

(a) the chargeable person’s name;

(b) the tax reference number (within the meaning of section 891B) or TIN (within the meaning of section 891F) of the chargeable person;

(c) the business address of the chargeable person.

(3) A person who ceases to be a chargeable person within the meaning of the definition in section 531AAG of ‘chargeable person’ shall notify the Revenue Commissioners of such cessation by written or electronic means and shall specify the date of cessation in the notification.

(4) The Revenue Commissioners shall keep and maintain a register of chargeable persons for the purposes of this Part.

Returns and payments by chargeable persons

531AAK. (1) Within 23 days from the end of an accounting period a chargeable person shall prepare and deliver to the Revenue Commissioners a return and self-assessment and remit to the Revenue Commissioners all amounts due to be charged under section 531AAH.

(2) The return required under subsection (1) shall contain the particulars required by it which shall include—

(a) the sum of the open market values, on the supply date, of concrete products supplied in the accounting period, and

(b) the amount of defective concrete products levy due for the accounting period.

(3) A return shall be required to be made by a chargeable person for an accounting period notwithstanding that no defective concrete products levy is due to be remitted by the chargeable person in that accounting period.

(4) Every return 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.

(5) A return shall be made by electronic means and the relevant provisions of Chapter 6 of Part 38 shall apply.

(6) Notwithstanding the requirements of subsection (2), where a chargeable person is aware or becomes aware that a return required under subsection (1) contains an error or omission an amended return shall be submitted by the chargeable person.

(7) A chargeable person who fails to file a return as required by this section shall be liable to a penalty not exceeding €4,000 for each such failure.

Assessments, enquiries and appeals

531AAL. (1) Sections 959Y, 959Z, 959AA, 959AC, 959AD and 959AE shall apply to defective concrete products levy, subject to the following modifications:

(a) a reference to a ‘person’ or a ‘chargeable person’ shall be construed as a reference to a ‘chargeable person within the meaning of section 531AAG’;

(b) a reference to a ‘chargeable period’ shall be construed as a reference to an ‘accounting period within the meaning of section 531AAG’;

(c) a reference to ‘tax’ shall be construed as including defective concrete products levy;

(d) a reference to ‘amount of income, profits or gains, or, as the case may be, chargeable gains’ shall be construed as including a reference to the open market value of a concrete product;

(e) a reference to a ‘return’ shall be construed as including a return required under this Part.

(2) A chargeable person aggrieved by an assessment or an amended assessment, as the case may be, made on that chargeable person pursuant to the provisions referred to in subsection (1), as applied subject to the modifications referred to in that subsection, may, within 30 days after the date of the notice of assessment appeal the assessment or the amended assessment to the Appeal Commissioners in accordance with section 949I.

Interest on overdue defective concrete products levy

531AAM. (1) Any amount of defective concrete products levy shall carry interest from the date when the defective concrete products levy becomes due and payable until payment for any day or part of a day during which the amount remains unpaid, at a rate of 0.0219 per cent.

(2) Subsections (3) to (5) of section 1080 shall apply in relation to interest payable under subsection (1) as they apply in relation to interest payable under section 1080.

Obligation to keep certain records

531AAN. (1) A chargeable person shall retain, or cause to be retained on behalf of the chargeable person, such records and linking documents as are required to enable a full and true return to be made for the purposes of this Part.

(2) Without prejudice to the generality of subsection (1), the records required to be retained under that subsection shall include, but are not limited to, books, accounts, documents and any other data maintained manually or by any electronic, photographic or other process, relating to—

(a) each first supply of concrete products during an accounting period, including—

(i) invoices, delivery and purchase records,

(ii) specific concrete product information which will enable the identification of the type of concrete product, and

(iii) documentation recording the open market value of the concrete products,

(b) the calculation of the liability for and payment of the defective concrete products levy in an accounting period by a chargeable person, and

(c) where applicable, the document issued under section 531AAH(3) or record made under section 531AAH(4) in relation to each such first supply.

(3) Records required to be retained under this section shall be retained—

(a) in written form in an official language of the State, or

(b) subject to section 887(2), by means of any electronic, photographic or other process.

(4) Notwithstanding any other law, records to be retained under this section shall be retained by the chargeable person required to retain the records, for the period of 6 years commencing from the end of the accounting period in which a return has been delivered.

(5) For the purposes of this section, where the chargeable person is a company and the company—

(a) is wound up, the liquidator, or

(b) is dissolved without the appointment of a liquidator, the last directors, including any person occupying the position of director by whatever name called, of the company,

shall retain the records required to be retained under this section for a period of 5 years from the date from which the company is wound up or dissolved.

(6) For the purpose of this section, where a chargeable person dies, the executor or administrator of that deceased person shall retain the records required to be retained under this section for a period of 5 years from the date of death of the chargeable person.

(7) A person who fails to comply with this section in respect of the retention of any records relating to defective concrete products levy shall be liable to a penalty of €3,000.

Care and management of defective concrete products levy

531AAO. (1) Defective concrete products levy is under the care and management of the Revenue Commissioners.

(2) Part 37 shall apply to defective concrete products levy as it applies to income tax, corporation tax and capital gains tax.

Valuation procedures

531AAP. (1) If the Revenue Commissioners are not satisfied with the open market value of a concrete product provided in a return or where no return is made, they may estimate the value of the concrete product and any charge to defective concrete products levy shall be made by reference to the open market value estimated by the Revenue Commissioners.

(2) The open market value of any concrete product for the purposes of subsection (1) shall be ascertained by the Revenue Commissioners in such manner and by such means as they think fit and they may authorise a person suitably qualified for that purpose.

(3) Where the Revenue Commissioners require a valuation to be made by a person authorised by them for the purposes of subsection (2) the costs of such valuation shall be defrayed by the Revenue Commissioners.

Application of Part 18E

531AAQ. (1) Subject to subsection (2), this Part shall apply to the first supply of a concrete product on or after 1 September 2023.

(2) Subject to subsection (3), this Part shall not apply to the supply of a concrete product if the first supply of that concrete product was before 1 September 2023.

(3) Where arrangements are entered into by connected persons and it would be reasonable to consider that one of the main purposes of those arrangements, or any part of them, is to avoid the application of section 531AAH by having a first supply of that product before 1 September 2023, then subsection (2) shall apply as if those arrangements, or that part of them, had not been entered into.”,

(b) in section 949A, in paragraph (c) of the definition of “Acts”, by the substitution of “Parts 18A to 18E,” for “Parts 18A to 18D,”,

(c) in section 960A, in paragraph (g) of the definition of “Acts”, by the substitution of “Parts 18A, 18B, 18C, 18D and 18E,” for “Parts 18A, 18B and 18C and 18D,”,

(d) in section 1002(1)(a), in subparagraph (iiia) of the definition of “the Acts”, by the substitution of “Parts 18A, 18B, 18C, 18D and 18E,” for “Parts 18A, 18B, 18C and 18D,”,

(e) in section 1006(1), in paragraph (aa) of the definition of “the Acts”, by the substitution of “Parts 18A, 18B, 18C, 18D and 18E,” for “Parts 18A, 18B, 18C and 18D,”,

(f) in section 1077A, in paragraph (c) of the definition of “the Acts”, by the substitution of “Parts 18A, 18B, 18C, 18D and 18E,” for “Parts 18A, 18B, 18C and 18D,”,

(g) in section 1077F(1)—

(i) in the definition of “the Acts”, by the substitution of “Parts 18A, 18B, 18C, 18D, 18E” for “Parts 18A, 18B, 18C, 18D”, and

(ii) in the definition of “tax”, by the insertion of “defective concrete products levy,” after “residential zoned land tax,”,

(h) in section 1078(1), in paragraph (ca) of the definition of “the Acts”, by the substitution of “Parts 18A, 18B, 18C, 18D and 18E,” for “Parts 18A, 18B, 18C and 18D,”,

(i) in section 1079(1), in paragraph (ca) of the definition of “the Acts”, by the substitution of “Parts 18A, 18B, 18C, 18D and 18E,” for “Parts 18A, 18B, 18C and 18D,”,

(j) in section 1086A(1), in paragraph (b) of the definition of “the Acts”, by the substitution of “Parts 18A, 18B, 18C, 18D, 18E and 22A of this Act,” for “Parts 18A, 18B, 18C, 18D and 22A of this Act,”,

(k) in section 1094(1), in paragraph (ca) of the definition of “the Acts”, by the substitution of “Parts 18A, 18B, 18C, 18D and 18E,” for “Parts 18A, 18B, 18C and 18D,”,

(l) in section 1095(1), in paragraph (ca) of the definition of “the Acts”, by the substitution of “Parts 18A, 18B, 18C, 18D and 18E,” for “Parts 18A, 18B, 18C and 18D,”,

(m) in Schedule 29, by the insertion of “section 531AAK” after “section 531AAF” in column (1), and

(n) by the insertion of the following Schedule after Schedule 35:

“SCHEDULE 36

Types and Standards of Concrete Product for the Purposes of Part 18E

Harmonised European Standard as referenced in the Official Journal of the European Union100 (or any adopted national version of such Harmonised European Standard)

Title Description

(1)

(2)

EN 771-3:2011+A1:2015

Specification for masonry units - Part 3: Aggregate concrete masonry units (Dense and lightweight aggregates)

EN 771-4:2011+A1:2015

Specification for masonry units - Part 4: Autoclaved aerated concrete masonry units

”.

(2) The Ministers and Secretaries (Amendment) Act 2011 is amended, in section 101(3), in the definition of “relevant enactment”, by the substitution of the following paragraph for paragraph (e):

“(e) Part 18A, 18B, 18C, 18D or 18E of the Taxes Consolidation Act 1997,”.

(3) The Finance (Tax Appeals) Act 2015 is amended, in section 2, in paragraph (c) of the definition of “Taxation Acts”, by the substitution of “18E” for “18D”.

(4) Subsections (1) to (3) shall come into operation on 1 September 2023.

100 OJ No. L88, 4.4.2011, p.5