Finance Bill 2009, which implements the Supplementary Budget announcements together with further measures not announced in the Budget, was published yesterday, 7 May 2009.
The following is a summary of the measures which were not announced in the Budget.
Income Levy
The taxable element of redundancy payments paid between 1 January and 30 April 2009 will be charged on the basis of the income levy rate in force in the first four months of the
year.
Mid-Shannon Tourism Infrastructure Scheme
The scheme was introduced with effect from 1 June 2008 following State Aid approval from the European Commission. The relevant legislation provided for a 31 May 2009 deadline for submission of projects for certification by the Mid Shannon Tourism Infrastructure Scheme Board. It is proposed that the 31 May 2009 deadline for submission of applications for certification to the Board be extended by one year to 31 May 2010. The qualifying period for incurring expenditure is also extended to 31 May 2013.
Participation Exemption
This amendment will provide that the "participation exemption", i.e. exemption from capital gains tax for Irish resident companies disposing of shares in other companies, cannot be availed of where the shares derive their value from exploration or exploration rights.
Interest on certain overdue tax
The statutory rate of interest applied by Revenue to delayed payments of taxation and underpayments by taxpayers engaged in business activities will be reduced by some 20% to 0.0219% and 0.0274% giving respective annualised equivalents of 8% and 10% approx. These new rates are to take effect from 1st July 2009.
Other changes to measures announced in the Budget include:
VAT
The proposed introduction of a VAT Margin Scheme for second-hand cars is not included in the Finance Bill.
According to the Minister, "the Society of the Irish Motor Industry (SIMI) expressed appreciation at the efforts made by the Government to try to assist the industry, they considered, in view especially of the difficult financing situation facing the industry, that on balance it would not be in its overall best interest for the Margin Scheme to be introduced at this time."
The Finance Bill 2009 is available here