244A Application of section 244 (relief for interest paid on certain home loans) of Principal Act.
(1) (a) In this section—
(i) “qualifying dwelling”, in relation to an individual, means a qualifying residence situated in the State;
“qualifying lender” has the meaning assigned to it by subsection (3);
“qualifying mortgage interest”, in relation to an individual and a year of assessment, means the qualifying interest paid by the individual in the year of assessment in respect of a qualifying mortgage loan;
“qualifying mortgage loan”, in relation to an individual, means a qualifying loan or loans secured by the mortgage of freehold or leasehold estate or interest in a qualifying dwelling, and
(ii) “appropriate percentage”, “qualifying interest”, “qualifying loan”, “qualifying residence” and “relievable interest” have the same meanings, respectively, as they have in section 244.
(b) This section provides for a scheme whereby relief due under section 244 shall, in certain circumstances, be given by way of deduction at source (“the tax relief at source scheme”) under subsection (2)(a) and in no other manner.
(2) (a) Where an individual makes a payment of qualifying mortgage interest to a qualifying lender in respect of which relief is due under section 244, the individual shall be entitled in accordance with regulations to deduct and retain out of it an amount equal to the appropriate percentage, for the year of assessment in which the payment is due, of the relievable interest.
(b) A qualifying lender to which a payment referred to in paragraph (a) is made—
(i) shall accept in accordance with regulations the amount paid after deduction in discharge of the individual’s liability to the same extent as if the deduction had not been made, and
(ii) may, on making a claim in accordance with regulations, recover from the Revenue Commissioners an amount equal to the amount deducted.
(3) The following bodies shall be qualifying lenders—
(a) a bank holding a licence under section 9 of the Central Bank Act, 1971;
(b) a building society incorporated or deemed to be incorporated under the Building Societies Act, 1989;
(c) a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989;
(d) ACC Bank plc;
(e) a local authority;
(f) a body which—
(i) (I) holds a licence or similar authorisation, corresponding to a licence referred to in paragraph (a), or
(II) has been incorporated in a manner corresponding to that referred to in paragraph (b),
under the law of any other Member State of the European Communities,
(ii) provides qualifying mortgage loans;
(g) a body which applies to the Revenue Commissioners for registration as a qualifying lender and in respect of which the Revenue Commissioners, having regard to the activities and objects of the body, are satisfied is entitled to be so registered.
(4) (a) The Revenue Commissioners shall maintain, and publish in such manner as they consider appropriate, a register for the purposes of subsection (3).
(b) If the Revenue Commissioners are satisfied that an applicant for registration is entitled to be registered, they shall register the applicant with effect from such date as may be specified by them.
(c) If it appears to the Revenue Commissioners at any time that a body which is registered under this subsection would not be entitled to be registered if it applied for registration at that time, the Revenue Commissioners may, by written notice given to the body, cancel its registration with effect from such date as may be specified by them in the notice.
(d) Any body which is aggrieved by the failure of the Revenue Commissioners to register it or by the cancellation of its registration, may, by notice given to the Revenue Commissioners before the end of the period of 30 days beginning with the date on which the body is notified of the Revenue Commissioners’ decision, require the matter to be determined by the Appeal Commissioners and the Appeal Commissioners shall hear and determine the matter in like manner as an appeal.
(5) (a) The Revenue Commissioners shall make regulations providing generally as to administration of this section and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision—
(i) that a claim under subsection (2)(b)(ii) shall be—
(I) made in such form and manner,
(II) made at such time, and
(III) accompanied by such documents,
as provided for in the regulations,
(ii) that, in circumstances specified in regulations, a claim may be made under subsection (2)(b)(ii) where a payment is due but not made;
(iii) for the making by qualifying lenders, in such form and manner as may be prescribed, of monthly returns containing particulars in relation to—
(I) each individual making payments of qualifying mortgage interest,
(II) the amount of qualifying mortgage interest paid or due by the individual to date in the year of assessment,
(III) the amount deducted by the individual, or the amount he or she would have been entitled to deduct, under subsection (2)(a),
(IV) the estimated qualifying mortgage interest to be paid by the individual in the year of assessment,
(V) the total amount of qualifying mortgage loans of the qualifying lender outstanding at the date of the return,
(VI) the total amount claimed by the qualifying lender under subsection (2)(b)(ii) for the month to which the return relates,
(VII) qualifying mortgage loans repaid in full in that month, and
(VIII) such other matters as may be specified;
(iv) for the transmission by the Revenue Commissioners to qualifying lenders, on a monthly basis, of such details as may be specified in the regulations in relation to—
(I) qualifying mortgage loans, and
(II) individuals with qualifying mortgage loans,
which are necessary for the operation of this section;
(v) in relation to the obligations and entitlements of individuals with qualifying mortgage loans under the tax relief at source scheme;
(vi) in relation to the obligations and entitlements of qualifying lenders under the tax relief at source scheme;
(vii) for deeming of certain qualifying mortgage loans, in such circumstances as may be specified in the regulations, as being no longer entitled to relief under this section;
(viii) for the granting of appropriate relief in any case where inadequate or excessive relief has been granted under this section; and
(ix) for the implementation of this section where a qualifying lender disposes of all or part of its qualifying mortgage loans.
(b) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.
(6) (a) Where any amount is paid to a qualifying lender by the Revenue Commissioners as an amount recoverable by virtue of subsection (2)(b)(ii) but is an amount to which that qualifying lender is not entitled, that amount shall be repaid by the qualifying lender.
(b) There shall be made such assessments, adjustments or set-offs as may be required for securing repayment of the amount referred to in paragraph (a) and the provisions of this Act relating to the assessment, collection and recovery of income tax shall, in so far as they are applicable and with necessary modification, apply in relation to the recovery of such amount.