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

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.

GIVEN under my Official Seal,

25 September 2003.

__________________

Charlie McCreevy

Minister for Finance

(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.

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