S.I. No. 136/2008 - Return of Payments (Banks, Building Societies, Credit Unions and Savings Banks) Regulations 2008

1. Any payment made by the specified person in respect of a Special Savings Incentive Account (within the meaning of section 848C (special savings incentive account) of the Principal Act) for any period before the account is treated as not being a Special Savings Incentive Account in accordance with the provisions of section 848H (termination of special savings incentive account) of the Principal Act.

2. Where the specified person is in possession of the declaration required by section 263 (declarations relating to deposits of non-residents) of the Principal Act to be made by the person who made the investment, any payment made by the specified person to that person in respect of that investment.

3. Where the specified person is not in possession of the declaration required by section 263 (declarations relating to deposits of non-residents) of the Principal Act to be made by the person who made the investment, any payment made by the specified person to the following persons and bodies in respect of that investment

(

a

) a bank which is not resident for the purposes of tax in the State,

(

b

) a building society which is not resident for the purposes of tax in the State but which is resident for the purposes of tax in another Member State of the European Communities,

(

c

) a company or any other entity quoted on a recognised stock exchange in a territory outside the State where the specified person making the payment is satisfied that the company or entity is not resident for the purposes of tax in the State,

(

d

) those bodies listed in Appendix III, paragraph 11.2, of the document entitled “Deposit Interest Retention Tax Guidance Notes for Deposit Takers” made available by the Commissioners to deposit takers and effective from January 2006 or listed in a corresponding list in any subsequent version of those Notes, where the bodies concerned are resident for the purposes of tax in a territory with which an agreement under section 826 (agreements for relief from double taxation) of the Principal Act has been entered into and where the specified person is satisfied—

(i) that the bodies concerned are not resident for the purposes of tax in the State, and

(ii) at the time the investment is made, that the investment will be for a period of less than 3 months.

4. Any payment made in respect of any certificate of deposit or commercial paper issued by a bank which qualifies for the treatment provided for by section 246A (interest in respect of wholesale deposits) of the Principal Act where the payment would not have been liable to be included in a return under section 891 (returns of interest paid or credited without deduction of tax) of that Act as applied by section 894 (return of certain information by third parties) of that Act if the Principal section had not been enacted.

5. Any payment made in respect of any Medium Term Note provided that—

(

a

) the conditions set out in Appendix III, paragraph 11.1, of the document entitled “Deposit Interest Retention Tax Guidance Notes for Deposit Takers” made available by the Commissioners to deposit takers and effective from January 2006, or

(

b

) the same or corresponding conditions set out in any subsequent version of those Notes,

apply in respect of the Medium Term Note concerned.

6. Any payment made to—

(

a

) another resident bank, a building society, a credit union, or the Post Office Savings Bank,

(

b

) the National Treasury Management Agency or the State acting through the National Treasury Management Agency,

(

c

) the Central Bank of Ireland,

(

d

) the Investment Compensation Company of Ireland,

(

e

) the National Pensions Reserve Fund Commission or the State acting through the National Pensions Reserve Fund Commission.

7. Any payment made in respect of a debt on a security issued by a bank and listed on a stock exchange.

8. Any payment made in respect of an investment held by a specified person outside the State.

The Minister for Finance consents to the making of the foregoing Regulations.

GIVEN under my Official Seal,

6 May 2008

BRIAN COWEN,

Minister for Finance.

GIVEN this

6 May 2008

JOSEPHINE FEEHILY,

Revenue Commissioner.

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation).

These Regulations give partial effect to the provisions of section 891B (inserted by

section 125

of the

Finance Act 2006

) of the

Taxes Consolidation Act 1997

which allow the Revenue Commissioners to make regulations, with the consent of the Minister for Finance, requiring financial institutions, assurance companies, collective funds and State bodies to make an annual return of customers resident in the State to whom interest or other payments are made. These particular regulations provide for the reporting by banks, buildingsocieties, credit unions and savings banks of interest and similar payments.

The broad details of the reporting scheme are

Reporting Threshold

Accounts and investments that pay interest of €635 or less in a year will not be reported. This is subject to an anti-account splitting provision requiring interest paid on all accounts opened on or after 1 January 2008 to be reported in the first year any payment is made.

Details to be reported

These include gross payment, name, address and date of birth if an individual where the account was opened or the investment was made before 1 January 2009. For new accounts opened and investments made on or after 1 January 2009 the details to be reported include gross payment, name, address, and tax reference number or, in the absence of a tax reference number a special marker indicating that the tax reference number was not provided.

Type of Payments

The income to be reported will be any return on an investment in the nature of interest or any amount paid in consideration of the making of an investment, including building society and credit union dividends, etc.

Phasing-in of Reporting

• The payments to be reported for the years 2005 and 2006 are payments made by banks, building societies and the Post Office Savings Bank from which DIRT was deducted.

• The payments to be reported for 2007 are, subject to some exceptions, all interest and other similar payments made by banks, building societies and the Post Office Savings Bank.

• The payments to be reported for the year 2008 and subsequent years are, subject to some exceptions, all interest and other similar payments made by banks, building societies, the Post Office Savings Bank and credit unions.

9. (1) Where, before the commencement of these Regulations, a specified person has included in a return, made under section 891 of the Principal Act as applied by section 894 of that Act, a payment made in a chargeable period (within the meaning of section 321(2) of the Principal Act) which period includes any part of the year 2007 or 2008, then the specified person shall be regarded for the purpose of these Regulations as having fulfilled any obligation to include that payment in a return under these Regulations for that year.

(2) Notwithstanding paragraph (1), a specified person may include in a return under these Regulations payments referred to in paragraph (1) if it is expedient for the person to so include such payments.

Delegation.

10. The Commissioners may nominate, in writing, any of their officers to perform any acts and discharge any functions authorised by these Regulations to be performed or discharged by them.

SCHEDULE 1

S. I. No. 136 of 2008

RETURN OF PAYMENTS (BANKS, BUILDING SOCIETIES, CREDIT UNIONS AND SAVINGS BANKS) REGULATIONS 2008