Taxes Consolidation Act, 1997 (Number 39 of 1997)
[1]>
991B Covid-19: special warehousing and interest provisions
(1) [20]>In this section<[20][20]>Subject to subsection (1A), in this section<[20]—
“the Acts” means—
(a) Parts 18C and 18D,
(b) the Stamp Duties Consolidation Act 1999 and the enactments amending or extending that Act,
(c) the Capital Acquisitions Tax Consolidation Act 2003 and the enactments amending or extending that Act,
(d) the Value-Added Tax Consolidation Act 2010 and the enactments amending or extending that Act,
(e) the Finance (Local Property Tax) Act 2012 and the enactments amending or extending that Act,
(f) the Customs Act 2015 and the enactments amending or extending that Act,
(g) the Capital Gains Tax Acts,
(h) the Tax Acts, other than this section,
(i) the statutes relating to the duties of excise and to the management of those duties, and
(j) any instruments made under any of the enactments referred to in paragraphs (a) to (i);
“Covid-19” has the same meaning as it has in the Emergency Measures in the Public Interest (Covid-19) Act 2020;
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“Covid-19 entitlement” means an entitlement to payment of an amount under—
(a) section 485,
(b) section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020,
(c) any of the following schemes:
(i) the scheme commonly known as the Live Performance Support Scheme Strand II;
(ii) the scheme commonly known as the Live Performance Support Scheme Phase 3;
(iii) the scheme commonly known as the Live Performance Restart Grant Scheme;
(iv) the scheme commonly known as the Live Local Performance Support Scheme;
(v) the scheme commonly known as the Commercial Entertainment Capital Grant Scheme;
(vi) the scheme commonly known as the Music and Entertainment Business Assistance Scheme;
(vii) the scheme commonly known as the Attractions and Activity Tourism Operators Business Continuity Scheme 2022;
(viii) the scheme commonly known as the Strategic Tourism Transport Business Continuity Scheme 2022;
(ix) the scheme commonly known as the Strategic Ireland Based Inbound Agents Tourism Business Continuity Scheme 2022;
(x) the scheme commonly known as the Tourism Accommodation Providers Business Continuity Scheme 2022;
(xi) the scheme commonly known as the Sustaining Enterprise Fund;
(xii) the scheme commonly known as the Accelerated Recovery Fund;
(xiii) the scheme commonly known as the Support for Licensed Outbound Travel Agents and Tour Operators;
(xiv) the scheme commonly known as the Temporary Covid-19 Supports for Commercial Bus Operators,
or
(d) a scheme designated for the purpose of this paragraph by order of the Revenue Commissioners under subsection (1B);
<[21]
“Covid-19 liabilities” means, subject to [12]>subsections (14) and (15)<[12][12]>subsection (14)<[12], the following that an employer is required to pay in respect of income tax months in Period 1 to the Revenue Commissioners, namely—
(a) income tax under this Chapter and any regulations made [6]>under this Chapter, and<[6][6]>under this Chapter,<[6]
(b) universal social charge [7]>under Part 18D;<[7][7]>under Part 18D, and<[7]
[8]>
(c) local property tax under Chapter 1 of Part 10 of the Finance (Local Property Tax) Act 2012;
<[8]
“Period 1”, in relation to an employer, means the period—
(a) beginning on the later of—
(i) the first day of the income tax month immediately preceding the income tax month in which the employer’s business was first adversely affected by Covid-19, and
(ii) 1 February 2020,
and
[13]>
(b) ending on the last day of the taxable period next following the taxable period in which the recommencement date falls;
<[13]
[13]>
(b) ending on 31 December 2021;
<[13]
[14]>
“Period 2”, in relation to an employer, means the period—
(a) beginning on the day next following the last day of Period 1, and
(b) ending on—
(i) the day that is the earlier of—
(I) the day that is 12 months from the day first-mentioned in paragraph (a), and
(II) 31 December 2022,
or
(ii) where the Minister for Finance makes an order for the purposes of this subparagraph, the day that is the earlier of—
(I) the day specified in the order, and
(II) 31 December 2022;
<[14]
[14]>
“Period 2”, in relation to an employer, means the period beginning on 1 January 2022 and ending on 31 December 2022;
<[14]
[15]>
“Period 3”, in relation to an employer, means the period—
(a) beginning on the day next following the last day of Period 2, and
(b) ending on the day on which the employer has discharged the Covid-19 liabilities in full;
<[15]
[15]>
“Period 3”, in relation to an employer, means the period beginning on 1 January 2023 and ending on the day on which the employer has discharged the Covid-19 liabilities in full.
<[15]
[16]>
“recommencement date”, in relation to an employer, means the later of—
(a) the day on which the employer’s business ceased to be subject to restrictions provided for in regulations made under sections 5 and 31A of the Health Act 1947, and
(b) where it is demonstrated to the satisfaction of the Revenue Commissioners that the business did not recommence on the day referred to in paragraph (a), the day on which the business recommenced after it ceased to be subject to the restrictions referred to in that paragraph;
“taxable period” has the same meaning as it has in the Value-Added Tax Consolidation Act 2010.
<[16]
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(1A) Where an employer has a Covid-19 entitlement—
(a) which arises out of circumstances occurring in a period falling between 1 January 2022 and 30 April 2022, or
(b) which arises out of circumstances occurring in a period falling prior to 1 January 2022, resulting in an amount becoming payable to the employer between 1 January 2022 and 30 April 2022,
then, in this section—
“Period 1”, in relation to the employer, means the period—
(a) beginning on the later of—
(i) the first day of the income tax month immediately preceding the income tax month in which the employer’s business was first adversely affected by Covid-19, and
(ii) 1 February 2020,
and
(b) ending on 30 April 2022;
“Period 2”, in relation to the employer, means the period beginning on 1 May 2022 and ending on 30 April 2023;
“Period 3”, in relation to the employer, means the period beginning on 1 May 2023 and ending on the day on which the employer has discharged the Covid-19 liabilities in full.
(1B) The Revenue Commissioners may designate by order a scheme for the purpose of paragraph (d) of the definition of “Covid-19 entitlement” in subsection (1), where they are satisfied that the scheme is similar in nature and objective to a scheme referred to in paragraph (c) of that definition.
<[22]
(2) For the purposes of this section, the business of an employer shall be treated as being adversely affected by Covid-19 on the date on which the Revenue Commissioners agreed to temporarily suspend the collection of the liabilities of the employer in respect of the tax and charge referred to in the definition of ‘Covid-19 liabilities’ as a consequence of the effect on the employer’s business of Covid-19.
(3) This section shall apply to an employer—
(a) who, as a consequence of the effect on the employer’s business of Covid-19 is unable to pay all or part of the employer’s Covid-19 liabilities,
(b) who complies with the requirements to file returns under this Chapter, and
(c) either—
(i) the employer’s tax affairs are administered by the Personal Division or Business Division of the Office of the Revenue Commissioners, or
(ii) the employer has formed the view that the employer is unable to pay all or part of the employer’s Covid-19 liabilities, and has notified the Revenue Commissioners that the employer has formed such a view.
(4) For the purposes of subsection (3)(c)(i), an employer’s tax affairs shall be treated as being administered by the Personal Division or Business Division of the Office of the Revenue Commissioners where the most recent correspondence received by the employer from that Office indicates that to be the case.
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(5) An inspector, or such other officer as the Revenue Commissioners have nominated for the purposes of section 990, may make such enquiries as he or she considers necessary to satisfy himself or herself as to whether an employer is unable to pay all or part of the employer’s Covid-19 liabilities.
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(5) An inspector, or such other officer as the Revenue Commissioners have nominated for the purposes of section 990, may make such enquiries as he or she considers necessary to satisfy himself or herself as to whether an employer—
(a) is unable to pay all or part of the employer’s Covid-19 liabilities, or
(b) has a Covid-19 entitlement—
(i) which arises out of circumstances occurring in a period falling between 1 January 2022 and 30 April 2022, or
(ii) which arises out of circumstances occurring in a period falling prior to 1 January 2022, resulting in an amount becoming payable to the employer between 1 January 2022 and 30 April 2022,
as the case may be.
<[23]
(6) Where this section applies to an employer, section 991 shall not apply to the employer’s Covid-19 liabilities.
(7) Where—
(a) this section applies to an employer, and
(b) the employer complies with the employer’s obligations under the Acts,
no interest shall be due and payable by the employer in respect of the employer’s Covid-19 liabilities during Period 1 and Period 2.
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(8) Where—
(a) this section applies to an employer,
(b) the employer complies with the employer’s obligations under the Acts,
(c) the employer has, prior to Period 3, entered into an agreement with the Collector-General to pay the employer’s Covid-19 liabilities, together with interest under this subsection, and
(d) the employer complies with the obligations of the employer under the agreement referred to in paragraph (c),
interest shall be paid by the employer in respect of the Covid-19 liabilities from the first day of Period 3 and the amount of that interest shall be determined in accordance with subsection (9).
<[2]
[2]>
(8) Where—
(a) this section applies to an employer,
(b) the employer complies with the employer’s obligations under the Acts,
(c) the employer has, prior to Period 3, entered into an agreement with the Collector-General to pay the employer’s Covid-19 liabilities, together with interest under this subsection, and
(d) the employer complies with the obligations of the employer under the agreement referred to in paragraph (c),
from the first day of Period 3, simple interest shall be paid by the employer to the Revenue Commissioners on any amount of the Covid-19 liabilities remaining unpaid and such interest shall be calculated from that day until payment of the amount for any day or part of a day during which that amount remains unpaid, at a rate of 0.0082 per cent.
<[2]
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(9) The interest referred to in subsection (8) shall be the amount determined by the formula—
DL x D x P
where—
DL is the amount of the Covid-19 liabilities which remains unpaid on the first day of Period 3,
D is the number of days (including part of a day) forming Period 3, and
P is 0.0082 per cent.
<[3]
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(10) Where an employer—
(a) during Period 1 or Period 2, fails to comply with an obligation referred to in subsection (7)(b),
(b) on the first day of Period 3, has not entered into an agreement referred to in subsection (8)(c), or
(c) during Period 3, fails to comply with an obligation referred to in subsection (8)(b) or (d),
interest shall be paid by the employer in respect of the employer’s Covid-19 liabilities from—
(i) in a case in which paragraph (a) or (c) applies, the date on which the event resulting in failure to comply with the obligation concerned occurred, and
(ii) in a case in which paragraph (b) applies, the first day of Period 3,
and the amount of that interest shall be determined in accordance with subsection (11).
<[4]
[4]>
(10) Where an employer—
(a) during Period 1 or Period 2, fails to comply with an obligation referred to in subsection (7)(b),
(b) on the first day of Period 3, has not entered into an agreement referred to in subsection (8)(c), or
(c) during Period 3, fails to comply with an obligation referred to in subsection (8)(b) or (d),
simple interest shall be paid by the employer to the Revenue Commissioners on any amount of the Covid-19 liabilities remaining unpaid on—
(i) in a case in which paragraph (a) or (c) applies, the date on which the event resulting in failure to comply with the obligation concerned occurred, and
(ii) in a case in which paragraph (b) applies, the first day of Period 3,
and such interest shall be calculated from that day until payment of the amount for any day or part of a day during which that amount remains unpaid, at a rate of 0.0274 per cent.
<[4]
[5]>
(11) The interest referred to in subsection (10) shall be the amount determined by the formula—
DL x D x P
where—
DL is the amount of the Covid-19 liabilities which remains unpaid on the date referred to in subsection (10),
D is the number of days (including part of a day) during which the Covid-19 liabilities remain unpaid, and
P is 0.0274 per cent.
<[5]
(12) Where an employer has complied with the requirements to file returns under this Chapter, the failure of the employer to pay Covid-19 liabilities shall not, for the purpose of section 1094 or 1095, be treated as a failure to comply with the obligations imposed on the employer by the Acts (within the meaning of section 1094 or 1095, as the case may be).
(13)Section 960E(2) shall not apply in respect of Covid-19 liabilities where the employer concerned complies with the employer’s requirements to file returns under this Chapter.
(14)Where the Collector-General has, under section 985G(7), varied the due date for payment of any income tax due in respect of an income tax month such that an employer may pay such tax liabilities quarterly [17]>or annually<[17] liabilities in respect of—
(a) income tax under this Chapter and any regulations made [9]>under this Chapter, and<[9][9]>under this Chapter,<[9]
(b) universal social charge [10]>under Part 18D,<[10][10]>under Part 18D, and<[10]
[11]>
(c) local property tax under Chapter 1 of Part 10 of the Finance (Local Property Tax) Act 2012,
<[11]
for any income tax months which are due from the employer at the same time as liabilities for income tax months within Period 1 shall be treated as Covid-19 liabilities.
[18]>
(15) Where—
(a) the Collector-General has, under section 985G(7), varied the due date for payment of any income tax due in respect of an income tax month such that an employer may pay such tax liabilities annually, and
(b) Period 1 for the employer ends in December 2020 or February 2021,
liabilities of the employer in respect of—
(i) income tax under this Chapter and any regulations made under this Chapter, and
(ii) universal social charge under Part 18D,
for all income tax months in 2020 shall be treated as Covid-19 liabilities.
<[18]
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(16)(a) The Minister for Finance may, in order to mitigate the adverse economic consequences resulting, or likely to result, from the spread of Covid-19, by order specify a day for the purpose of subparagraph (ii) of paragraph (b) of the definition of ‘Period 2’ in subsection (1).
(b) The Minister for Finance shall not specify in an order under paragraph (a) a day that falls after 31 December 2022.
(c) An order under this subsection shall be laid before Dáil Éireann as soon as may be after it has been made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.
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