Tax Clearance FA 2002

The Finance Act 2002 extended the tax clearance requirement to a number of new areas as well as making a number of other changes in relation to tax clearance.

Extended coverage

Section 41 provides for a scheme of tax relief for donations to certain sports bodies for the funding of capital projects. The sports body must possess a valid tax clearance certificate. The provision will come into effect from 1 May 2002.

Section 84 provides that a tax clearance certificate must be produced by an applicant for a permit to operate amusement machines in public places. This requirement applies in respect of permits commencing on or after 1 July 2002.

Section 86 provides that a tax clearance certificate must be produced when applying for any of the following intoxicating liquor licences:

• A manufacturers’s licence required by
  • A brewer of beer for sale
  • A distiller of spirits
  • A rectifier or compounder of spirits
  • A maker for sale of sweets.
• A beer retailer’s on-licence
• A cider retailer’s on-licence
• A sweets retailer’s on licence
• A cider retailer’s off-licence
• A sweet retailer’s off-licence
• A railway restaurant car licence
• A passenger vessel licence (annual)
• A passenger vessel licence (one day), or
• A passenger aircraft licence.

This requirement applies in respect of any of these licences commencing after enactment of the Finance Act.

Section 93 provides that repayments of mineral oil tax under the passenger road services scheme will be confined to applicants who have a current tax clearance certificate. This section will come into operation by a commencement order to be made by the Minister for Finance.

Other tax clearance changes

Section 127(a) makes a number of “enabling” legal changes to the existing tax clearance legislation. The purpose of these changes is to allow the tax clearance procedure to be handled electronically (rather than the current paper based system). The intention is to develop such a possibility (e.g. using the ROS system) and further information will be provided on this initiative once the technical requirements are in place.

To further facilitate customers it is also the intention, subject to the customer’s agreement, to publish tax clearance certificates on a secure website where relevant public bodies can be authorized by the customer to view the certificate. This will be helpful, for example, to a customer bidding for Government contracts since it will avoid the necessity of producing the hard-copy certificate on each occasion. Again, further information will be provided once the technical requirements are in place.

Section 127(b) amends existing tax clearance legislation to provide for a “generic” tax clearance provision. This change will enable a tax clearance certificate to be issued to any compliant taxpayer who requests it and follows a recommendation by the Joint Oireachtas Committee on the Strategic Management Initiative (SMI).

How to apply for a tax clearance certificate

Customers requiring a tax clearance certificate can obtain the required application form by contacting:

Office of the Collector-General,
Sarsfield House, Francis Street,
Limerick

Telephone LoCall 1890 203070

Fax 061 - 410866

email cg@revenue.ie

The application form will also be available shortly for download from Revenue’s website www.revenue.ie

A Tax Clearance Certificate can only be issued where a person’s tax affairs are up to date. Applications continue to be received where this is not the case and these applications are creating unnecessary delay and expense for all concerned.

Agents should advise any client requiring a tax clearance certificate to ensure their tax affairs are in order before submitting an application for a Tax Clearance Certificate. Agents registered with the Revenue Online Service can check the status of their clients tax affairs using the ROS Customer Information Services.

Any further information in relation to Tax Clearance can be obtained from:

Tax Clearance Section,
Office of the Collector-General,
Sarsfield House,
Limerick,

Phone: Lo call 1890 203070.