Stamp Duty Consolidation Act, 1999 (Number 31 of 1999)
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75 Relief for member firms.
[FA1996 s107(1) to (4)]
(1) Stamp duty shall not be chargeable on any instrument of transfer whereby any securities are on the sale of such securities transferred to a member firm acting on its own behalf in the ordinary course of that member firm”s business or to a nominee of such member firm.
(2) Notwithstanding subsection (1)—
(a) if and to the extent that the member firm does not transfer the securities referred to in subsection (1) to a bona fide purchaser before the expiration of the period of one month from the date of transfer, in this section referred to as “the specified period”, the member firm shall pay to the Commissioners within 14 days after the expiration of the specified period the amount of ad valorem duty which would have been chargeable on the transfer if this section had not been enacted;
(b) the member firm may, in relation to any such sale with a completion date not later than 30 days from the date of the contract for sale and prior to the date of the contract, elect to have such completion date treated as the date of the second-mentioned transfer referred to in paragraph (a) and, in that event, that completion date shall be deemed, for the purposes of paragraph (a), to be the date of that second-mentioned transfer.
(3) If any member firm fails to pay any sum due to the Commissioners under subsection (2), that sum, together with [3]>interest on that sum at the rate of [3]>interest on that sum, calculated in accordance with section 159D,<[3] after the expiration of the specified period to the date of payment of that sum and, by means of further penalty, a sum equal to 1 per cent of the duty for each day the duty remains unpaid, shall be recoverable from the member firm as a debt due to the Minister for the benefit of the Central Fund.[2]>1 per cent per month or part of a month<[2][2]>0.0322 per cent for each day or part of a day<[2] from the first day<[3]
(4) Where subsection (1) applies in relation to a transfer of securities to a member firm, the member firm shall within 30 days of the end of the relevant period within which the transfer is made deliver to the Commissioners a statement in writing or in such other manner as the Commissioners may agree to in writing—
(a) showing in respect of each such transfer—
(i) full details in relation to the type, nominal value, description and amount of the securities comprised in the transfer;
(ii) what part (if any) of the securities comprised in the transfer has been transferred by the member firm to a bona fide purchaser within the specified period and what part of the securities has not been so transferred;
(iii) the date of the transfer and, if any part of the securities has been transferred to a bona fide purchaser within the specified period, the date on which that part was so transferred;
(iv) the amount of stamp duty (if any) payable by virtue of subsection (2) and the date of payment;
(b) certifying in respect of each such transfer that—
(i) the member firm was acting on its own behalf in the ordinary course of its business, and
(ii) any securities transferred in respect of which the stamp duty has not been paid were transferred on sale to a bona fide purchaser within the period of one month after the date of the transfer, and shall produce such further evidence by means of statutory declaration or otherwise in relation to the matters set out in paragraphs (a) and (b) as the Commissioners require.
(5) A member firm which fails to deliver a statement within the period specified in subsection (4) shall be liable to a penalty of [1]>£1,000<[1][1]>€1,265<[1].
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75 Relief for intermediaries.
(1) In this section—
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“competent authority” has the meaning assigned to it by the Directive;
“Directive” means Directive 2004/39/EC of the European Parliament and of the Council of 21 April 200422 on markets in financial instruments, as amended from time to time;
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“excluded business” means any of the following:
(a) any business which consists in the making or managing of investments;
(b) any business which consists in, or is carried on for the purpose of, providing services to persons who are connected with the person carrying on the business; and the question of whether a person is connected with another person shall be determined in accordance with the provisions of section 10 of the Taxes Consolidation Act 1997;
(c) any business which consists in insurance business, or assurance business within the meaning of section 3 of the Insurance Act 1936;
(d) any business which consists in administering, managing or acting as trustee in relation to, a pension scheme, or which is carried on by the administrator, manager or trustee of such a scheme, in connection with or for the purposes of the scheme;
(e) any business which consists in operating, or acting as trustee in relation to, a collective investment scheme (within the meaning of section 88), or is carried on by the operator or trustee of such a scheme in connection with or for the purposes of the scheme;
“intermediary” means a person who carries on a bona fide business of dealing in securities and, for the purpose of this definition, the entering into derivative agreements referenced directly or indirectly to securities shall be treated as carrying on a business of dealing in securities;
“member firm” means a member of—
(a) the Irish Stock Exchange Limited,
(b) the London Stock Exchange plc, or
(c) any other exchange or market which is designated for the purposes of this section in regulations made by the Commissioners;
“operator”, in relation to a collective investment scheme, means an administrator, manager or other such person who is authorised to act on behalf of, or in connection with, or for the purposes of, the scheme and habitually so acts in that capacity;
“recognised intermediary”, in relation to an exchange or market, means a member of the exchange or market who is an intermediary and who is approved by the Commissioners as a recognised intermediary in accordance with arrangements made by the Commissioners with the exchange or market.
(2) For the purposes of this section, a transfer of securities is effected on an exchange or market if—
(a) it is subject to the rules of the exchange or, as the case may be, the market, and
(b) it is reported to the exchange or, as the case may be, the market, in accordance with the rules of the exchange or market concerned.
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(2A) For the purposes of subsection (2), a transfer of securities shall be deemed to be effected on an exchange or market, where the transfer of securities gives effect to a transaction that is required by a competent authority, in accordance with the Directive, to be reported directly or indirectly to the competent authority and is so reported in accordance with that requirement.
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(3) Stamp duty shall not be chargeable on an instrument of transfer whereby any securities are on the sale of such securities transferred to a person or a nominee of such person, where—
(a) the person is a member firm of an exchange or market,
(b) the person is a recognised intermediary in relation to the exchange or market,
(c) the transfer of securities is effected—
(i) on the exchange or, as the case may be, the market,
(ii) on any exchange or market operated by the Irish Stock Exchange Limited or the London Stock Exchange plc, or
(iii) on any other exchange or market designated by the Commissioners for the purposes of this section,
and
(d) the transfer of securities is not effected in connection with an excluded business.
(4) (a) The Commissioners may, from time to time, make arrangements with an exchange or a market setting out how a member firm is to be approved by the Commissioners as a recognised intermediary.
(b) Every recognised intermediary shall, whenever and wherever required to do so, make available for inspection by an officer of the Commissioners authorised for that purpose, all books, documents and other records in the possession of or under the control of, the recognised intermediary, as are relevant for the purposes of the Commissioners ensuring compliance by the intermediary with this section.
(5) (a) The Commissioners may, from time to time, make regulations to designate an exchange or market for the purposes of this section.
(b) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.
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Footnote
22 OJ No. L145, 30 April 2004, p.1
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[4]
Substituted by FA07 s109(1)(d). Comes into operation on 19 October 2018 per S.I. No. 411 of 2018.
[5]
Inserted by FA08 s114(1)(a). Applies to instruments executed on or after 1 November 2007.
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Inserted by FA08 s114(1)(b). Applies to instruments executed on or after 1 November 2007. Note: The section would be amended by the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2019 (8/2019). However, as Part 6 of this Act is not commenced at the date of consolidation these amendments are not reflected in the text above.