817RH Penalties.

(1) A person who fails to comply with any of the obligations imposed on such person by this Chapter shall—

(a) where the failure relates to the obligation imposed on a person under subsection (3) or (10) of section 817RC, or section 817RD(4) or 817RF, be liable to—

(i) a penalty not exceeding €4,000, and

(ii) if the failure continues after a penalty is imposed under subparagraph (i), to a further penalty of €100 per day for each day on which the failure continues after the day on which the penalty is imposed under that subparagraph,

(b) where the failure relates to the obligation imposed on a person under subsection (1), (2) or (5) of section 817RC or section 817RD(1), be liable to—

(i) a penalty not exceeding €500 for each day during the initial period, and

(ii) if the failure continues after a penalty is imposed under subparagraph (i), to a further penalty of €500 per day for each day on which the failure continues after the day on which the penalty is imposed under that subparagraph,

(c) where the failure relates to the obligation imposed on a person by section 817RD(9), be liable to a penalty not exceeding €5,000.

(2) For the purposes of subsection (1)(b)—

“the initial period” means the period—

(a) beginning on the relevant day, and

(b) ending on the day on which an application referred to in subsection (3) is made;

“relevant day” means the first day after the end of the period specified in subsection (1), (2) or (5) of section 817RC or section 817RD(1), as the case may be, during which the obligation imposed on a person by the said subsection (1), (2) or (5) of section 817RC or section 817RD(1), as the case may be, shall be discharged.

(3) (a) Notwithstanding section 1077B, the Revenue Commissioners shall, in relation to a failure referred to in subsection (1), make an application to the relevant court for that court to determine whether the person named in the application has failed to comply with the obligation imposed on that person by a provision referred to in subsection (1)(a), (b) or (c), as the case may be.

(b) In paragraph (a) “relevant court” means the District Court, the Circuit Court or the High Court, as appropriate, by reference to the jurisdictional limits for civil matters laid down in Courts of Justice Act 1924 and the Courts (Supplemental Provisions) Act 1961.

(4) A copy of an application under subsection (3) shall be given to the person to whom the application relates.

(5) The relevant court shall determine whether the person named in the application made under subsection (3) is liable to the penalty provided for in paragraph (a), (b) or (c), as the case may be, of subsection (1) and the amount of that penalty, and in determining the amount of the penalty the court shall have regard to paragraph (a) or (b), as the case may be, of subsection (6).

(6) In determining the amount of a penalty under subsection (5) the court shall have regard—

(a) in the case of a person who is an intermediary, to the amount of any fees received, or likely to have been received, by the person in connection with the reportable cross-border arrangement, and

(b) in any other case, to the amount of any tax advantage gained, or sought to be gained, by the person from the reportable cross-border arrangement.

(7) Section 1077C shall apply for the purposes of a penalty under subsection (1).