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898N Audit.

(1) In this section—

“associated company”, in relation to a paying agent, means a company which is itself a paying agent and which is the paying agent’s associated company within the meaning of section 432;

“authorised officer” means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section;

“books, records or other documents” includes—

(a) any records used in the business of a paying agent or used in the transfer department of a paying agent acting as a registrar of securities, whether—

(i) comprised in bound volumes, loose-leaf binders or other loose-leaf filing system, loose leaf ledger sheets, pages, folios or cards, or

(ii) kept on microfilm, magnetic tape or in any non-legible form (by the use of electronics or otherwise) which is capable of being reproduced in a legible form,

(b) every electronic or other automated means, if any, by which any such thing in non-legible form is so capable of being reproduced,

(c) documents in manuscript, documents which are typed, printed, stencilled or created by any other mechanical or partly mechanical process in use from time to time and documents which are produced by any photographic or photostatic process,

(d) correspondence and records of other communications (including e-mails) between a paying agent and a beneficial owner or between a paying agent and a residual entity, and

(e) the materials and documents referred to in sections 898F(5) and 898G(6).

(2) A Revenue officer may by notice in writing require a paying agent, or a person who appears to that officer to be a paying agent, to furnish him or her within such time, not being less than 14 days, as may be provided by the notice, with such information (including copies of any relevant books, records or other documents) as he or she may reasonably require for the purposes of determining whether information contained in a ^[2]>report^{<[2] [2]>}return^<[2] under this Chapter by that paying agent was correct and complete.

(3) Any person who has been required by a notice under subsection (2) to furnish information (including copies of any relevant books, records or other documents) and that person fails to comply with the notice shall be liable to a penalty of ^[4]>€1,265^<[4][4]>€3,000^<[4].

(4) An authorised officer may at all reasonable times enter any premises or place of business of a paying agent or a person who appears to that officer to be a paying agent for the purposes of determining whether information—

(a) included in a ^[3]>report^{<[3] [3]>}return^<[3] under this Chapter by that paying agent was correct and complete, or

(b) not included in a ^[3]>report^{<[3] [3]>}return^<[3] under this Chapter was correctly not so included.

(5) Without prejudice to the generality of subsection (4), an authorised officer may—

(a) examine the procedures put in place by the paying agent for the purpose of ensuring compliance by the paying agent with the paying agent’s obligations under sections 898F and 898G,

(b) check a sample of accounts or transactions in respect of which interest has been paid to a beneficial owner to determine whether—

(i) the procedures referred to in paragraph (a) have been observed in practice and whether they are adequate, and

(ii) the paying agent is, in respect of each account or transaction in the sample, in possession of the materials and documents referred to in section 898F(5) or 898G(6), as appropriate.

(6) An authorised officer may require a paying agent or an employee of the paying agent to produce books, records or other documents and to furnish information, explanations and particulars and to give all assistance, which the authorised officer reasonably requires for the purposes of the determination and examination referred to in subsections (4) and (5).

(7) An authorised officer may require an associated company in relation to a paying agent or an employee of such an associated company to produce books, records or other documents and to furnish information, explanations and particulars and to give all assistance, which the authorised officer reasonably requires for the purposes of the determination and examination referred to in subsections (4) and (5).

(8) An authorised officer may make extracts from or copies of all or any part of the books, records or other documents or other materials made available to him or her or require that copies of books, records or other documents be made available to him or her, in exercising or performing his or her powers under this section.

(9) An employee of a paying agent or of an associated company in relation to a paying agent who fails to comply with the requirements of an authorised officer in the exercise or performance of the authorised officer’s powers or duties under this section shall be liable to a penalty of ^[5]>€1,265^<[5][5]>€3,000^<[5].

(10) A paying agent or an associated company in relation to a paying agent which fails to comply with the requirements of the authorised officer in the exercise or performance of the authorised officer’s powers or duties under this section shall be liable to a penalty of €19,045 and if that failure continues a further penalty of €2,535 for each day on which the failure continues.

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