I move Financial Resolution No. 12:
(1) That—
(a) in this Resolution—
"appropriate tax", in relation to a payment of relevant interest, means a sum representing income tax on the amount of that payment at the standard rate in force at the time of the payment, and "amount on account of appropriate tax" shall be construed in accordance with paragraph (7) of this Resolution;
"building society" means a society within the meaning of the Building Societies Acts, 1976 to 1983;
"deposit" means a sum of money paid to a relevant deposit taker on terms under which it will be repaid with or without interest and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person to whom it is made;
"interest" means any interest of money whether yearly or otherwise, including any amount whether or not described as interest paid in consideration of the making of a deposit, and, as respects a building society, includes any dividend or other distribution in respect of shares in the society;
"relevant deposit" means a deposit held by a relevant deposit taker other than a deposit—
(i) which is made by, and the interest on which is beneficially owned by, a relevant deposit taker or by the Central Bank of Ireland,
(ii) which is a debt on a security which is listed on a stock exchange,
(iii) which, in the case of a relevant deposit taker resident in the State for the purposes of corporation tax, is held by a branch of the relevant deposit taker situated outside the State,
(iv) which, in the case of a relevant deposit taker not resident in the State for the purposes of corporation tax, is held otherwise than at a branch of the relevant deposit taker situated in the State,
(v) which is a deposit denominated in a foreign currency, or
(vi) in respect of which—
(I) no person who is ordinarily resident in the State is beneficially entitled to any interest, and
(II) a declaration of the kind mentioned in paragraph (22) of this Regulation has been made to the relevant deposit taker;
"relevant deposit taker" means any of the following persons, that is to say:
(i) a person who is a holder of a licence granted under section 9 of the Central Bank Act, 1971 (No. 24 of 1971),
(ii) a building society,
(iii) a trustee savings bank within the meaning of the Trustee Savings Bank Acts, 1863 to 1979,
(iv) the Agricultural Credit Corporation, p.l.c.,
(v) the Industrial Credit Corporation, p.l.c., and
(vi) the Post Office Savings Bank;
"relevant interest" means interest paid on or after the 6th day of April, 1986, in respect of a relevant deposit;
"return" means a return under paragraph (5) of this Resolution;
and
(b) for the purposes of this Resolution—
(i) any amount which is credited as interest in respect of a relevant deposit shall be treated as a payment of interest, and references in this Resolution to relevant interest being paid shall be construed accordingly,
(ii) any reference in this Resolution to the amount of a payment of relevant interest shall be construed as a reference to the amount which would be the amount of that payment if no appropriate tax were to be deducted therefrom, and
(iii) a deposit is held at a branch of a relevant deposit taker if it is recorded in its books as a liability of that branch.
(2) That a relevant deposit taker making a payment of relevant interest shall deduct out of the amount of the payment the appropriate tax in relation to the payment.
(3) That any payment of relevant interest within paragraph (2) of this Resolution shall be treated as not being within section 31 of the Finance Act, 1974 (No. 27 of 1974).
(4) That, notwithstanding any other provision of the Tax Acts, paragraphs (5) to (14) of this Resolution shall have effect for the purpose of regulating the time and manner in which appropriate tax in relation to a payment of relevant interest shall be accounted for and paid.
(5) That, subject to paragraph (8) of this Resolution, a relevant deposit taker shall, for the year 1986-87 and for each subsequent year of assessment, make, within 15 days from the end of the year of assessment, a return to the Collector-General of the relevant interest paid by it in that year and of the appropriate tax in relation to the payment of that interest.
(6) That the appropriate tax in relation to a payment of relevant interest which is required to be included in a return shall be due at the time by which the return is to be made and shall be paid by the relevant deposit taker to the Collector-General, and the appropriate tax so due shall be payable by the relevant deposit taker without the making of an assessment; but appropriate tax which has become due as aforesaid may be assessed on the relevant deposit taker (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.
(7) That, notwithstanding paragraph (6) of this Resolution, a relevant deposit taker shall, for each year of assessment (being the year 1986-87 or any subsequent year of assessment), pay to the Collector-General within 15 days from the 5th day of October in that year of assessment an amount on account of appropriate tax which shall be not less than the amount of appropriate tax which would be due and payable by it for that year of assessment in accordance with the said paragraph (6) if the total amount of the relevant interest which had accrued (interest being, for this purpose, treated, if not otherwise so treated, as accruing from day to day) in the period commencing on the 6th day of April and ending on the 5th day of October in that year of assessment on all relevant deposits held by the relevant deposit taker in that period (and no more) had been paid by it in that year of assessment; and any amount on account of appropriate tax so paid by the relevant deposit taker for a year of assessment shall be treated as far as may be as a payment on account of any appropriate tax due and payable by it for that year of assessment under the said paragraph (6):
Provided that, where the amount on account of appropriate tax paid by a relevant deposit taker for a year of assessment under this paragraph exceeds the amount of appropriate tax due and payable by it for that year of assessment under the said paragraph (6), the excess shall be carried forward and shall be set off against any amount due and payable under this paragraph or the said paragraph (6) by the relevant deposit taker for any subsequent year of assessment (any such set-off being effected as far as may be against an amount so due and payable at an earlier date rather than at a later date).
(8) That—
(a) any amount on account of appropriate tax payable by a relevant deposit taker under paragraph (7) of this Resolution shall be so payable without the making of an assessment,
(b) all the provisions of this Resolution relating to the collection and recovery of appropriate tax shall apply with any necessary modifications to the collection and recovery of any amount on account of appropriate tax, and
(c) a return required to be made by a relevant deposit taker for a year of assessment shall contain a statement of the amount of interest in respect of which an amount on account of appropriate tax is due and payable by the relevant deposit taker for that year of assessment and of the amount on account of appropriate tax so due and payable; and a return shall be so required to be made by a relevant deposit taker for a year of assessment notwithstanding that no relevant interest was paid by it in that year of assessment.
(9) That, if it appears to the inspector that there is any amount of appropriate tax in relation to a payment of relevant interest which ought to have been and has not been included in a return, or if the inspector is dissatisfied with any return, he may make an assessment on the relevant deposit taker to the best of his judgment; and any amount of appropriate tax in relation to a payment of relevant interest due under an assessment made by virtue of this paragraph shall be treated for the purposes 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.
(10) That, where any item has been incorrectly included in a return as a payment of relevant interest, the inspector may make such assessments, adjustments or set-offs as may in his judgment be required for securing that the resulting liabilities to tax (including interest on unpaid tax) whether of the relevant deposit taker or any other person are, so far as possible, the same as they would have been if the item had not been so included.
(11) That—
(a) any appropriate tax assessed on a relevant deposit taker under this Resolution shall be due within one month after the issue of the notice of assessment (unless that tax or any amount treated as an amount on account of it is due earlier under paragraph (6) or (7) of this Resolution) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under the said paragraph (6) or (7), and
(b) on the determination of an appeal against an assessment under this Resolution any appropriate tax overpaid shall be repaid.
(12) That—
(a) all the provisions of the Income Tax Acts relating to—
(i) assessments to income tax,
(ii) appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and
(iii) the collection and recovery of income tax, shall, so far as they are applicable, apply to the assessment, collection and recovery of appropriate tax,
(b) any amount of appropriate tax or amount on account of appropriate tax payable in accordance with this Resolution without the making of an assessment shall carry interest at the rate of 1.25 per cent. for each month or part of a month from the date when the amount becomes due and payable until payment.
(c) the provisions of subsections (3), (4) and (5) of section 550 of the Income Tax Act, 1967 (No. 6 of 1967), shall apply in relation to interest payable under subparagraph (b) of this paragraph as they apply in relation to interest payable under the said section 550,
(d) in its application to any appropriate tax charged by any assessment made in accordance with this Resolution, section 550 of the Income Tax Act, 1967, shall have effect with the omission of the proviso to subsection (1) and subsections (2) and (2A), and
(e) notwithstanding anything in the Income Tax Acts, the provisions of section 419 of the Income Tax Act, 1967, and section 30 of the Finance Act, 1976 (No. 16 of 1976), shall not apply in relation to any appropriate tax which is charged by an assessment made in accordance with this Resolution.
(13) That 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.
(14) That the provisions of sections 500, 501 and 503 of the Income Tax Act, 1967, shall apply as if there were a reference to this Resolution in column 1 of Schedule 15 to that Act.
(15) That, as respects the year 1986-87 and any subsequent year of assessment—
(a) subsections (1), (2), (3) and (6) of section 31 of the Corporation Tax Act, 1976 (No. 7 of 1976), shall cease to have effect, and
(b) subsections (4) and (9) of that section shall have effect as if the references therein to arrangements made under that section being in force or being entered into by a building society were omitted.
(16) That, notwithstanding anything in the Tax Acts—
(a) no part of any relevant interest paid by a building society in respect of any shares in the society shall be treated for the purposes of the Corporation Tax Acts as a distribution of the society or as franked investment income of any company resident in the State,
(b) no repayment of appropriate tax in respect of any relevant interest shall be made to any person receiving or entitled to the payment of the relevant interest who is not a company within the charge to corporation tax in respect of the payment.
(c) subject to subparagraph (d) of this paragraph, no assessment to income tax shall be made in respect of any relevant interest on the person receiving or entitled to the payment of the relevant interest,
(d) subparagraph (c) of this paragraph shall not prevent an assessment in respect of income tax at the higher rates on any relevant interest in respect of which appropriate tax is deductible, and
(e) section 4 of the Finance Act, 1974, shall have effect as if a reference to appropriate tax deductible by virtue of this Resolution were contained in paragraph (a) of that section.
(17) That, where a deposit which is a source of income of any person (hereafter in this Resolution referred to as the "lender") who is chargeable to income tax in respect of any interest payable on the deposit is not a taxed-interest deposit but at any time becomes such a deposit, then, notwithstanding section 75 of the Income Tax Act, 1967, section 77 (3) of that Act shall apply as if the deposit were a source of income which is directed to be separately computed under subsection (2) of the said section 75 and as if the deposit were a source of income which the lender ceased to possess immediately before it became a taxed-interest deposit:
Provided that, in the case of a deposit which becomes a taxed-interest deposit on the 6th day of April, 1986, the said section 77 (3) shall not apply so as to require any adjustment of the total income of a lender for any year of assessment prior to the year 1985-86.
(18) That, where a deposit which is a source of income of a lender ceases to be a taxed-interest deposit, then, notwithstanding section 75 of the Income Tax Act, 1967, subsections (1) and (2) of section 77 of that Act shall apply, as respects the year of assessment in which it so ceases and the next subsequent year of assessment, as if the deposit were a source of income which is directed to be separately computed under subsection (2) of the said section 75 and as if the deposit were a new source of income acquired by the lender immediately after it ceased to be a taxed-interest deposit.
(19) That, for the purposes of paragraphs (17) and (18) of this Resolution, a deposit is at any time a taxed-interest deposit if, were the relevant deposit taker who holds it to make a payment of relevant interest in respect of it at that time, the said relevant deposit taker would be required to deduct the appropriate tax out of the payment.
(20) That section 344 of the Income Tax Act, 1967, shall not have effect as respects any relevant interest.
(21) That a relevant deposit taker shall, when requested to do so by any person entitled to any relevant interest on a relevant deposit held by the relevant deposit taker, furnish to that person, as respects any payment of such relevant interest, a statement showing—
(a) the amount of that payment,
(b) the amount of appropriate tax deducted therefrom,
(c) the net amount of the payment, and
(d) the date of the payment.
(22) That a declaration of a kind mentioned in this paragraph is a declaration in writing to a relevant deposit taker which—
(a) is made by a person (hereafter in this paragraph referred to as "the declarer"), to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker, and is signed by the declarer,
(b) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
(c) declares that at the time when the declaration is made the person who is beneficially entitled to the interest in relation to the said deposit is not, or, as the case may be, all of the persons who are so entitled are not, ordinarily resident in the State,
(d) contains as respects the person, or, as the case may be, each of the persons, mentioned in subparagraph (c) of this paragraph—
(i) the name of the person,
(ii) the address of his principal place of residence, and
(iii) the name of the country in which he is ordinarily resident at the time the declaration is made,
(e) contains an undertaking by the declarer that if the person, or, as the case may be, any of the persons, referred to in subparagraph (c) of this paragraph becomes ordinarily resident in the State, the declarer will notify the relevant deposit taker accordingly, and
(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Resolution:
Provided that a notice served, on or before the 29th day of January, 1986, on a relevant deposit taker under section 175 (4) of the Income Tax Act, 1967, shall, at all times before the 6th day of April, 1987, be deemed for the purposes of this Resolution, apart from paragraph (23) thereof, to be a declaration of a kind mentioned in this paragraph.
(23) That—
(a) a relevant deposit taker shall—
(i) keep and retain for a period of six years, and
(ii) on being so required by notice given to it in writing by an inspector, make available to the inspector, within the time specified in the notice,
all declarations of a kind mentioned in paragraph (22) of this Resolution which have been made in respect of deposits held by the relevant deposit taker, and
(b) the inspector may examine, take extracts from or copies of any declarations made available to him under subparagraph (a) of this paragraph.
(24) That a relevant deposit taker shall treat every deposit made with it as a relevant deposit unless satisfied that it is not a relevant deposit; but where it has satisfied itself that a deposit is not a relevant deposit it shall be entitled to continue to so treat the deposit until such time as it is in possession of information which can reasonably be taken to indicate that the deposit is, or may be, a relevant deposit.
(25) That this Resolution (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts.
(26) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).