Waiver of Certain Tax, Interest and Penalties Act, 1993

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Waiver of certain tax and related interest and penalties.

2.—(1) In this section—

“the Acts” means—

(a) the Income Tax Acts (other than Chapter IV of Part V of the Income Tax Act, 1967 , and section 17 of the Finance Act, 1970 ),

(b) the Capital Gains Tax Acts,

(c) section 16 of the Finance Act, 1983 ,

(d) the Health Contributions Act, 1979 , and

(e) the Youth Employment Agency Act, 1981 ,

and any instruments made thereunder;

“income” means total income from all sources as estimated in accordance with the provisions of the Income Tax Acts after deducting from the income so much of any deduction allowed by virtue of the provisions referred to in section 33 of the Finance Act, 1975 , as is to be deducted from or set off against that income in charging it to income tax;

“tax” means any tax, levy or contributions payable in accordance with any provision of the Acts.

(2) This section applies to an individual who, for the relevant period, was in receipt of income or had chargeable gains in respect of which any tax (referred to in this Act as “relevant tax”) due and payable by him in accordance with any provision of the Acts has not been paid:

Provided that—

(a) this section shall not apply to an individual if, before the 25th day of May, 1993 (hereafter in this proviso referred to as “the designated date”), he had been notified in writing by an inspector—

(i) that the inspector intended to make any enquiries or take any actions as are specified in section 15 of the Finance Act, 1988 , in relation to the liability to tax of the individual for the relevant period, or

(ii) that any matter which occasions or may occasion a liability or further liability to tax of the individual for the relevant period is under investigation or enquiry by the inspector,

and such enquiries or actions, or investigation or enquiry, as the case may be, had not been concluded on or before the designated date, and for the purposes of this paragraph the aforesaid enquiries or actions, or investigation or enquiry, shall be deemed not to have been concluded unless an agreement has been reached between the individual and the inspector as to the liability to tax of the individual for the relevant period,

(b) relevant tax shall not include any sum—

(i) which, before the designated date, was certified in a certificate issued, and not withdrawn, under section 485 of the Income Tax Act, 1967 ,

(ii) which, before the designated date, was the subject of proceedings initiated, and not withdrawn, as a debt due to the Minister, in any court of competent jurisdiction,

(iii) which was tax contained in an assessment which was on the designated date the subject of an appeal to which the provisions of Part XXVI of the Income Tax Act, 1967 , apply,

(iv) which, before the designated date, was entered as a specified amount in a notice of attachment issued, and not revoked, under section 73 of the Finance Act, 1988 ,

(v) which was not paid on or before the designated date by virtue of an arrangement or scheme the main purpose, or one of the main purposes, of which was the avoidance of liability to tax,

(vi) which, following enquiries made, or action taken, by an inspector pursuant to section 15 of the Finance Act, 1988 , or any other investigation by an inspector, had been agreed before the designated date by an individual and an inspector as being the individual's tax liability,

(vii) being tax in respect of income or chargeable gains which arose from, or by reason of, an illegal source or activity (other than the evasion of tax or the non-compliance with the provisions relating to exchange control), or

(viii) paid or remitted in accordance with the provisions of section 3 in respect of arrears of tax.

(3) An individual to whom this section applies shall—

(a) within the specified period give a declaration in writing to the Chief Special Collector which—

(i) is made and signed by the individual,

(ii) is in a form prescribed by the Revenue Commissioners and approved of by the Minister,

(iii) contains, in relation to the individual, a full and true statement of the respective amounts (referred to in this Act as “the declared amounts”) of—

(I) the income, and

(II) the chargeable gains,

referred to in subsection (2), and

(iv) declares that neither the declared amounts nor any part of those amounts arose from, or by reason of, an unlawful source or activity (other than the evasion of tax or the non-compliance with the provisions relating to exchange control), and

(b) not earlier than the giving of the declaration referred to in paragraph (a) but on or before the 14th day of January, 1994, remit to the Chief Special Collector an amount (referred to in this Act as “the settlement amount”) equal to 15 per cent. of the declared amounts.

(4) On receipt by him of the declaration referred to in subsection (3) and the settlement amount, the Chief Special Collector shall give to the individual concerned—

(a) a certificate, in a form prescribed by the Revenue Commissioners and approved of by the Minister, stating, in relation to that individual—

(i) his name and address,

(ii) the settlement amount paid by him, and

(iii) the respective amounts of the declared amounts, and

(b) evidence, in a form prescribed by the Revenue Commissioners and approved of by the Minister, that such a certificate has been given.

(5) Notwithstanding any other provision of the Acts but subject to section 4 , where an individual to whom this section applies complies with the provisions of subsection (3)—

(a) his liability to relevant tax in respect of the declared amounts—

(i) shall be deemed to be satisfied by the settlement amount, and

(ii) shall not be arrears of tax,

(b) any amount of relevant interest which the individual may have become liable for in relation to relevant tax in respect of the declared amounts shall be waived, and

(c) proceedings shall not be initiated or continued for the recovery of any fine or penalty to which the individual may be liable under any of the specified provisions in relation to relevant tax in respect of the declared amounts, nor shall the Revenue Commissioners seek or demand from the individual payment of any sum in lieu of such fine or penalty.