Section 123B Cash, combined and debit cards

Summary

This section, which imposes a stamp duty of €2.50 (€5 for year ended 31 December 2007 – previously €10) on both cash (ATM) and debit (e.g. laser) cards, €2.50 (€5 for year ended 31 December 2007 – previously €10) on combined (ATM/Debit) cards where only one of the functions of the card is used in the year and €5 (€10 for year ended 31 December 2007 – previously €20) on combined (ATM/Debit) cards where the two functions of the combined card are used in the year, replaces sections 123 and 123A for “due dates” falling after 31 December 2005. The duty is payable by a bank or building society in respect of each cash, combined and debit card issued at any time and which is valid on 31 December in each year, commencing with the year 2006. Banks and building societies are required to submit details of those cards to the Revenue Commissioners and to accompany those details with the payment of the duty. They may pass on the charge to their customers.

Because the duty is a stamp duty other appropriate provisions of this Act apply, in particular:

• section 126B which enables an appeal against an assessment to duty (the review procedures set out in Revenue Complaint and Review Procedures Leaflet – CS4 (December 2012)) also apply), and
• section 152 which enables the Revenue Commissioners to refund duty in certain circumstances – but also see section 159A as regards the time limit for making a refund claim and section 159B as regards interest that may be payable on such refunds.

Details

(1) “account holder”, “bank”, “basic payment account”, “building society”, “card account”, “cash card”, “combined card”, “debit card”, “period of financial exclusion”, “promoter” and “quarter” are self-explanatory.

(1B) Strictly, an account will cease to be a basic payment account on the expiry of 2 months from the date a promoter has served notice of termination of the account. However, as a matter of practice Revenue will operate on the basis of a notice period of 3 months, as this facilitates certain promoters (financial institutions) procedures.

(2) A bank or building society must deliver a statement to the Revenue Commissioners within one month of the end of each year, commencing with the year 2006, showing the number of cash cards, combined cards and debit cards issued at any time by the bank or building society and which are valid on 31 December in that year.

(3) Cards which —

• are not used during the year,
• are issued in respect of a deposit account, the average of the daily positive balance which does not exceed €12.70,
• are issued in respect of a basic payment account

are not liable to duty¹.

(4) In relation to cards included in the statement provided for under subsection (2), a stamp duty of €2.50 is imposed in respect of each cash card and debit card, €2.50 for each combined card where only one of the functions of the card is used in the year, and €5 for each combined card where the two functions of the combined card are used in the year.

(5) The statement must be accompanied by the amount of duty payable.

(6) Banks and building societies must provide all necessary information to the Revenue Commissioners relating to the liability to duty.

(7) Interest at the rate of 0.0219 per cent per day (see section 159D) is chargeable, in addition to the duty, on the unpaid duty from the date the duty was required to be paid to the date the duty is paid. A penalty of €380 per day is also payable for each day the duty remains unpaid after the relevant one month period.

(8) This subsection enables the Revenue Commissioners to enforce delivery of the statement.

(9) Banks and building societies may pass on the duty and any interest payable to the account holder.

(10) If the card is liable to duty under section 124 then it is not liable to duty under this section.

(11) In relation to the definition of “basic payment account”, the Minister of Finance has power to vary by order

• the duration of the period of financial exclusion, and
• the threshold amount (currently €4,500), subject to a maximum variation of 20 per cent.

(12) Every order made under subsection (11) must be laid before Dail Eireann after it is made.

Relevant Date: Finance Act 2014