I move recommendation No. 13:
In page 20, before section 19, to insert a new section as follows:—
"19.—(1) (a) The Revenue Commissioners shall, on application to them in that behalf by a person, issue to the person a certificate (referred to in this section as ‘a certificate of authorisation') if they are satisfied—
(i) that the person is or is about to become a specified person engaged in the business of carrying out professional services,
(ii) that, in connection with the business, records to which section 6 (2) of the Finance Act, 1968, refers are being or will be kept, and any other records normally kept in connection with such a business are being or will be kept and are being or will be kept property and accurately,
(iii) that—
(A) the person, any partnership in which he is or was a partner and any company (within the meaning of the Companies Act, 1963) of which he is or was a proprietary director or proprietary employee,
(B) in a case where the person is a partnership, each partner, and
(C) in a case where the person is a company, each director of the company and any person who is either the beneficial owner of, or able, directly or indirectly to control more than 15 per cent of the ordinary share capital of the company,
has throughout the qualifying period complied with all the obligations imposed on him by the Tax Acts, or the Acts relating to corporation profits tax in relation to—
(I) the payment or remittance of the taxes required to be paid or remitted under those Acts,
(II) the delivery of returns, and
(III) requests to supply to an inspector accounts of, or other information about, any business carried on by the said individual, partnership or company, as the case may be,
(iv) that there is good reason to expect that the said person, partnership or company will comply with the obligations referred to in subparagraph (iii) in relation to periods ending after the date of termination of the qualifying period.
(b) A person in respect of whom the Revenue Commissioners are not satisfied in relation to any one or more of the matters specified in subparagraphs (i) to (iv) of paragraph (a) shall nevertheless, for the purposes of the issue of a certificate of authorisation, be treated as a person in respect of whom they are so satisfied if the Revenue Commissioners are of the opinion that, in all the circumstances, his failure ought to be disregarded for those purposes.
(c) In this subsection "the Acts relating to corporation profits tax" means Part V of the Finance Act, 1920, and the enactments amending or extending that Part.
(2) (a) Where a specified person to whom a certificate of authorisation has been issued produces it to an authorised person, the authorised person shall apply to the Revenue Commissioners for a card (in this section referred to as "a professional payments card") in respect of the specified person.
(b) If, on such application, the Revenue Commissioners are satisfied that a professional payments card in respect of the specified person aforesaid ought to be issued, to the authorised person aforesaid, they shall issue such a card to such authorised person who, upon receiving the card, shall, subject to the provisions of subsection (3), be entitled during the income tax year (or the unexpired portion thereof) to which the specified person's certificate of authorisation relates to make payments to the specified person named in the card without deduction of tax.
(3) (a) Where it appears to the Revenue Commissioners that—
(i) a certificate of authorisation was issued on the basis of false or misleading information,
(ii) a certificate of authorisation would not have been issued if information, obtained subsequent to its issue, had been available at the date of its issue,
(iii) a person to whom a certificate of authorisation was issued has permitted it to be misused,
(iv) a person to whom a certificate of authorisation was issued has failed to comply with any of the obligations imposed on him by the Tax Acts or by any regulations made thereunder, or
(v) the carrying out of professional services in relation to which the certificate of authorisation was issued has ceased to be carried out by the person to whom the certificate was issued,
they may, at any time, cancel the certificate and give notice in writing to that effect to any principal.
(b) Where a principal receives a notice under paragraph (a), he shall—
(i) deduct tax, in accordance with the provisions of section 15 (1), from any payments made to the person to whom the notice relates on or after the date of receipt of the notice, and
(ii) return to the Revenue Commissioners any professional payments cards issued to him in relation to the person aforesaid and any professional tax deduction card kept by him in relation to such person.
(c) The Revenue Commissioners shall advise a person in relation to whom a notice under paragraph (a) was issued of the issue of such notice and shall require him to return to them forthwith the certificate of authorisation issued to him.
(4) (a) Where any person—
(i) for the purpose of obtaining a certificate of authorisation makes any false statement or furnishes any document which is false in a material particular,
(ii) disposes of a certificate of authorisation otherwise than by the return of the said certificate to the Revenue Commissioners,
(iii) fails to return a certificate of authorisation to the Revenue Commissioners when required to do so pursuant to subsection (3) (c),
(iv) is in possession of a certificate of authorisation that was not issued to him by the Revenue Commissioners, or
(v) produces to a principal a certificate of authorisation after he has been advised by the Revenue Commissioners of the issue of a notice under subsection (3) (c),
he shall be guilty of an offence and shall be liable, on summary conviction, to a fine of £500 or, at the discretion of the court, to imprisonment for a term not exceeding 6 months or to both the fine and the imprisonment.
(b) Any person who aids, abets, counsels or procures—
(i) the obtaining of a certificate of authorisation by means of a false statement,
(ii) the use by any person, other than the person to whom it was issued by the Revenue Commissioners, of a certificate of authorisation, or
(iii) the production to a principal of a document that is not a certificate of authorisation but purports to be such a certificate,
shall be guilty of an offence and shall be liable, on summary conviction, to a fine of £500 or, at the discretion of the court, to imprisonment for a term not exceeding 6 months or to both the fine and the imprisonment.
(c) Any person—
(i) who fails to enter on a professional payments card or professional tax deduction card such particulars as are required to be entered thereon by virtue of this section and any regulations made thereunder,
(ii) who fails to return to the Revenue Commissioners the said professional payments card or professional tax deduction card pursuant to subsection (3) (b),
(iii) who returns to the Revenue Commissioners any such card on which are entered particulars which are incorrect in any material particular, or,
(iv) who fails to comply with any provision of regulations made under this section requiring him to keep or produce any records or documents,
shall be guilty of an offence and shall be liable, on summary conviction, to a fine of £500.".