Taxes Consolidation Act, 1997 (Number 39 of 1997)
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1080B. Covid-19: special warehousing and interest provisions (income tax)
(1) [9]>In this section<[9][9]>Subject to subsection (1A), in this section<[9]—
“the Acts” has the same meaning as it has in section 1080A;
“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);
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“Covid-19 income tax” means, subject to subsection (15), the following that a relevant person is required to pay during Period 1:
(a) an amount of tax which a relevant person is required to pay in accordance with section 959AN for income tax purposes;
(b) income tax payable by a relevant person for a tax year;
“Period 1”, in relation to a relevant person, means[3]>, subject to subsection (6),<[3] the period—
(a) beginning on the date on which—
(i) preliminary tax appropriate to the tax year 2020 for income tax purposes, and
(ii) income tax appropriate to the tax year 2019,
are due and payable, and
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(b) ending on—
(i) the date referred to in paragraph (a), or
(ii) where, as a consequence of the effect on the relevant person’s income of Covid-19, the relevant person is unable to pay all or part of the relevant person’s Covid-19 income tax appropriate to the tax year 2021 and has made a declaration under subsection (6), 31 October 2021 or where the relevant person’s return is filed electronically, such later date for electronic filing of his or her return of income for the tax year 2020 as the Collector- General may announce;
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(b) ending on 31 December 2021;
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“Period 2”, in relation to a relevant person, means the period—
(a) beginning on the day next following the last day of Period 1, and
(b) ending on the day that is 12 months from the day first-mentioned in paragraph (a);
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“Period 2”, in relation to a relevant person, means the period beginning on 1 January 2022 and ending on 31 December 2022;
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“Period 3”, in relation to a relevant person, 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 relevant person has discharged the Covid-19 income tax in full;
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“Period 3”, in relation to a relevant person, means the period beginning on 1 January 2023 and ending on the day on which the relevant person has discharged the Covid-19 income tax in full;
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“relevant person” means a person who is—
(a) required to file a return by virtue of Chapter 1 of Part 38, or
(b) a chargeable person for income tax for the purposes of Part 41A.
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(1A) Where a relevant person 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 relevant person between 1 January 2022 and 30 April 2022,
then, in this section—
“Period 1”, in relation to the relevant person, means the period—
(a) beginning on the date on which—
(i) preliminary tax appropriate to the tax year 2020 for income tax purposes, and
(ii) income tax appropriate to the tax year 2019,
are due and payable, and
(b) ending on 30 April 2022;
“Period 2”, in relation to the relevant person, means the period beginning on 1 May 2022 and ending on 30 April 2023;
“Period 3”, in relation to the relevant person, means the period beginning on 1 May 2023 and ending on the day on which the relevant person has discharged the Covid-19 income tax 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.
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(2) This section shall apply to a relevant person—
(a) who, as a consequence of the effect on the relevant person’s income of Covid-19 is unable to pay all or part of the relevant person’s Covid-19 income tax, and
(b) who complies with the requirements to file returns under Chapter 1 of Part 38 or Chapter 3 of Part 41A, as applicable.
(3) For the purposes of subsection (2)(a), a relevant person shall be deemed unable to pay all or part of the relevant person’s Covid-19 income tax [7]>due and payable on the date on which Period 1 begins<[7] where the relevant person makes a declaration, in accordance with subsection (5), to the Collector-General that—
(a) the relevant person estimates that the relevant person’s total income for 2020 will be less than 75 per cent of the relevant person’s total income for 2019, and
(b) the decrease in total income referred to in paragraph (a) is a consequence of the effect on the relevant person’s income of restrictions provided for in regulations made under sections 5 and 31A of the Health Act 1947.
(4) Where a relevant person was not a relevant person for the tax year 2019, for the purposes of subsection (2)(a) the relevant person shall be deemed unable to pay all or part of the relevant person’s Covid-19 income tax [8]>due and payable on the date on which Period 1 begins<[8] where the relevant person has—
(a) formed the view that, as a consequence of the effect on the relevant person’s income of restrictions provided for in regulations made under sections 5 and 31A of the Health Act 1947, the relevant person is unable to pay the relevant person’s Covid-19 income tax in 2020, and
(b) made a declaration, in accordance with subsection (5), to the Collector-General that the relevant person has formed such a view.
(5) A relevant person shall make a declaration under subsection (3) or (4) as the case may be—
(a) when filing the relevant person’s return of income for the tax year 2019, and
(b) no later than 31 October 2020 or, where such return is filed electronically, such later date for electronic filing of the relevant person’s return of income for the tax year 2019 as the Collector- General may announce.
(6) Where—
(a) a relevant person has formed the view that—
(i) the relevant person’s total income for 2021 will be less than 75 per cent of the relevant person’s total income for 2019,
(ii) the decrease in total income referred to in subparagraph (i) will arise as a consequence of the effect on the relevant person’s income of restrictions provided for in regulations made under sections 5 and 31A of the Health Act 1947, and
(iii) as a consequence of the decrease in total income referred to in subparagraph (i), the relevant person will be unable to pay preliminary tax appropriate to the tax year 2021 and income tax payable for the tax year 2020,
or
(b) in a case in which a relevant person was not a relevant person for 2019, the relevant person has formed a view that, as a consequence of the effect on the relevant person’s income of restrictions provided for in regulations made under sections 5 and 31A of the Health Act 1947, the relevant person is unable to pay preliminary tax appropriate to the tax year 2021 and income tax payable for the tax year 2020,
the relevant person may make a declaration, in accordance with subsection (7), to the Collector-General that the relevant person has formed such a view.
(7) A relevant person shall make a declaration under subsection (6)—
(a) when filing the relevant person’s return of income for the tax year 2020, and
(b) no later than 31 October 2021 or, where such return is filed electronically, such later date for electronic filing of the relevant person’s return of income for the tax year 2020 as the Collector- General may announce.
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(8) A Revenue officer may make such enquiries as he or she considers necessary to satisfy himself or herself as to whether—
(a) a relevant person’s total income for 2020 or 2021, as the case may be, is less than 75 per cent of the relevant person’s total income for 2019, or
(b) where a relevant person was not a relevant person for 2019, the relevant person is unable to pay the relevant person’s Covid-19 income tax in 2020 or 2021, as the case may be.
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(8) An officer of the Revenue Commissioners may make such enquiries as he or she considers necessary to satisfy himself or herself as to whether—
(a) a relevant person’s total income for 2020 or 2021, as the case may be, is less than 75 per cent of the relevant person’s total income for 2019,
(b) where a relevant person was not a relevant person for 2019, the relevant person is unable to pay the relevant person’s Covid-19 income tax in 2020 or 2021, as the case may be, or
(c) the relevant person 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 relevant person between 1 January 2022 and 30 April 2022,
as the case may be.
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(9) Where this section applies to a relevant person, section 1080 shall not apply to the relevant person’s Covid-19 income tax.
(10) Where—
(a) this section applies to a relevant person, and
(b) the relevant person complies with the relevant person’s obligations under the Acts,
no interest shall be due and payable by the relevant person in respect of the relevant person’s Covid-19 income tax during Period 1 and Period 2.
(11) Where—
(a) this section applies to a relevant person,
(b) the relevant person complies with the relevant person’s obligations under the Acts,
(c) the relevant person has, prior to Period 3, entered into an agreement with the Collector-General to pay the relevant person’s Covid-19 income tax, together with interest under this subsection, and
(d) the relevant person complies with the obligations of the relevant person under the agreement referred to in paragraph (c),
from the first day of Period 3, simple interest shall be paid by the relevant person to the Revenue Commissioners on any amount of the Covid-19 income tax 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.
(12) Where a relevant person—
(a) during Period 1 or Period 2, fails to comply with an obligation referred to in subsection (10)(b),
(b) on the first day of Period 3, has not entered into an agreement referred to in subsection (11)(c), or
(c) during Period 3, fails to comply with an obligation referred to in subsection (11)(b) or (d),
simple interest shall be paid by the relevant person to the Revenue Commissioners on any amount of the Covid-19 income tax 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 0.0219 per cent.
(13) Where—
(a) a declaration is made by a relevant person under subsection (3) and it subsequently transpires that the relevant person’s total income for 2020 is greater than or equal to 75 per cent of the relevant person’s total income for 2019, or
(b) a declaration is made by a relevant person under subsection (4) and it subsequently transpires the relevant person’s income for 2020 was not affected by restrictions provided for in regulations made under sections 5 and 31A of the Health Act 1947,
then—
(i) income tax payable by the relevant person for 2020 shall be deemed to be due and payable on 31 October 2020, and
(ii) interest shall be paid by the relevant person to the Revenue Commissioners on any amount of the Covid-19 income tax remaining unpaid on 31 October 2020 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 0.0219 per cent.
(14) Where a declaration is made by a relevant person under subsection (6)—
(a) in respect of the matter described in paragraph (a) of that subsection and it subsequently transpires that the relevant person’s total income for 2021 is greater than or equal to 75 per cent of the relevant person’s total income for 2019, or
(b) in respect of the matter described in paragraph (b) of that subsection and it subsequently transpires the relevant person’s income for 2021 was not affected by restrictions provided for in regulations made under sections 5 and 31A of the Health Act 1947,
then—
(i) income tax payable by the relevant person for 2021 shall be deemed to be due and payable on 31 October 2021, and
(ii) interest shall be paid by the relevant person to the Revenue Commissioners on any amount of the Covid-19 income tax remaining unpaid on 31 October 2021 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 0.0219 per cent.
(15) Where, in accordance with section 959AO(3), the income tax payable by a relevant person in respect of the 2019 tax year is deemed to have been due and payable on 31 October 2019, that income tax shall not be Covid-19 income tax.
(16) Where this section applies to a relevant person, section 959AO(3) shall not apply in respect of that person’s Covid-19 income tax.
(17) Where a relevant person has complied with the requirements to file returns under Chapter 1 of Part 38 or Chapter 3 of Part 41A, as applicable, the failure of the relevant person to pay Covid-19 income tax shall not, for the purpose of section 1094 or 1095, be treated as a failure to comply with the obligations imposed on the relevant person by the Acts (within the meaning of section 1094 or 1095, as the case may be).
(18) Section 960E(2) shall not apply in respect of Covid-19 income tax where the relevant person concerned complies with the relevant person’s requirements to file returns under Chapter 1 of Part 38 or Chapter 3 of Part 41A, as applicable.
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(19) Where—
(a) a relevant person who is a person with a material interest (within the meaning of section 997A) in a company—
(i) has not estimated that the relevant person’s total income for 2020 will be less than 75 per cent of the relevant person’s total income for 2019,
(ii) has not formed the view that the relevant person’s total income for 2021 will be less than 75 per cent of the relevant person’s total income for 2019, or
(iii) was not a relevant person for 2019 and neither subsection (4) nor paragraph (b) of subsection (6) applies to that person,
and
(b) section 991B applies to the company,
this section shall apply to the relevant person, subject to the modification that a reference in this section to a relevant person’s Covid-19 income tax shall be construed as a reference to that part of the relevant person’s income tax liabilities which relates to the person’s Schedule E income from the company.
(20) Where a relevant person referred to in subsection (19) includes on a return or declaration, as Covid-19 income tax, any amount of income tax other than income tax relating to the relevant person’s Schedule E income from the company referred to in that subsection, section 959AO(3) shall apply to the relevant person’s Covid-19 income tax.
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