Section 123C Preliminary duty: cash, combined and debit cards

Summary

This section caters for the preliminary payment of the stamp duty on cash, combined and debit cards to be made by financial institutions on 15 December of each year, commencing on 15 December 2008. This preliminary payment of stamp duty is based on 80% of the financial institution’s stamp duty liability in relation to those cards for the previous year. However, the preliminary payment due on 15 December 2008 only is based on 40% of the financial institution’s stamp duty liability in relation to the cards for the year 2007.

Details

(1) The definitions of “accountable person”, “base period”, “chargeable period”, “due date”, “preliminary duty” and “specified statement” are self-explanatory.

(2) The section applies to an accountable person who is obliged to submit a statement under section 123B in respect of the preceding year (the first preceding year is the year 2007).

(3) An accountable person must submit a statement in respect of the preliminary duty not later than 15 December in the year, commencing with the year 2008.

(4) Where a business is taken over after the expiration of a preceding year and prior to a due date, the person who has taken over the business must make a return under this section in respect of the due date concerned.

(5) Preliminary duty is charged on the statement required to be delivered to the Revenue Commissioners.

(6) The statement must be accompanied by the stamp duty payable on the statement.

(7) An accountable person must provide all necessary information to the Revenue Commissioners relating to the liability to duty.

(8) In the case of failure by an accountable person to deliver a statement by the due date, interest is chargeable on the unpaid stamp duty in accordance with section 159D from the due date until the date of payment of the duty. A penalty of €380 for each day the duty remains unpaid is also payable.

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

(10) Any preliminary duty paid that becomes overpaid following the delivery of a statement under section 123B in respect of the chargeable period falling after the due date will be repaid by the Revenue Commissioners.

(11) Where a business is taken over in the period after a due date and before the end of the next chargeable period under section 123B, the person who takes over the business may deduct the preliminary duty from the statement to be submitted under section 123B for that chargeable period where the preliminary duty has been paid by the person who sold the business.

(12) An accountable person may not claim the stamp duty, interest or penalty imposed under the section as a deduction in the computation of any tax or duty payable by the accountable person.

Relevant Date: Finance Act 2014