Section 124 Credit cards and charge cards
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(1)(a) In this subsection-
"account" means an account maintained by a bank to which amounts in respect of goods, services or cash obtained by an individual by means of a credit card are charged;
["account holder" means the person in whose name an account is maintained by a bank;]1
["bank" includes-
(i) a person who holds a licence granted under section 9 of the Central Bank Act 1971, and
(ii) a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. No. 395 of 1992)) and a financial institution within that meaning;]2
["chargeable period" means the 12 month period ending on 1 April 2009 and each subsequent 12 month period;]3
"credit card" means a card issued by a bank to an individual having an address in the State by means of which goods, services and cash may be obtained by the individual and amounts in respect of the goods, services and cash may be charged [to the account;]4
["letter of closure", in relation to an account, means a letter, in such form as the Commissioners may specify, issued during a relevant period by a bank to an account holder in respect of an account which has been closed during the relevant period confirming that the account holder has, during the relevant period, accounted for the amount of stamp duty-
(i) which the bank is required to pay in respect of the account for the relevant period, or
(ii) which another bank (not being a branch of the same bank) is required to pay for the relevant period in respect of another account which has been closed during the relevant period;
"relevant period" means a 12 month period ending on 1 April in any year commencing with the 12 month period ending on 1 April 2006;
"replacement account" means an account that is opened and maintained by a bank in the name of an account holder during a relevant period-
(i) where an account in the name of the account holder was, during the relevant period, previously closed by the bank, or
(ii) where the account holder has furnished to the bank during the relevant period a letter of closure issued by another bank (not being a branch of the same bank) in relation to an account in the name of the account holder which was closed during the relevant period.]5
[(b) A bank shall, within 3 months of the end of each relevant period, deliver to the Commissioners a statement in writing showing in respect of accounts maintained by the bank at any time during the relevant period-
(i) the number of accounts that are replacement accounts, and
(ii) the number of accounts that are not replacement accounts.]6
(c) There shall be charged on every statement delivered in pursuance of paragraph (b) a stamp duty at the rate of [€30]7 in respect of each account included in the number of accounts shown in the statement.
[(d) Notwithstanding paragraph (c), where a bank maintains a replacement account at any time during a relevant period, the bank shall be exempt from stamp duty on that replacement account. (e) A bank shall not issue a letter of closure during a relevant period in respect of an account that has been closed during the relevant period where-
(i) the account holder has not accounted for the amount of stamp duty which the bank is required to pay in respect of the account for the relevant period, or
(ii) the bank is not in possession of a letter of closure, in respect of another account closed during the relevant period, received from the account holder during the relevant period.
(f) Where a bank treats an account as a replacement account by virtue of the account holder furnishing a letter of closure, the bank shall not, by virtue of that letter, treat any other account as a replacement account.
(g) A bank shall not issue more than one original letter of closure in respect of an account and may only issue a duplicate letter of closure to an account holder to whom an original letter of closure issued where the bank is satisfied that the original letter of closure has been lost or destroyed and where such letter states that it is a duplicate of an original letter of closure.]8
Amendments
1 Definition of "account holder" inserted by Finance Act 2005 section 128(1)(d)(i)(I)(A) as respects accounts maintained by a bank or promoter after 1 April 2005.
2 Definition of "bank" inserted by Finance Act 2005 section 128(1)(d)(i)(I)(A) as respects accounts maintained by a bank or promoter after 1 April 2005.
3 Definition of "chargeable period" inserted by Finance Act 2008 section 123(1)(b)(i) as respects any statement that falls to be delivered by a bank or promoter after 1 April 2009.
4 Substituted by Finance Act 2005 section 128(1)(d)(i)(I)(B) as respects accounts maintained by a bank or promoter after 1 April 2005.
5 Definition of "letter of closure", "relevant period" and "replacement account" inserted by Finance Act 2005 section 128(1)(d)(i)(I)(C) as respects accounts maintained by a bank or promoter after 1 April 2005.
6 Subs(1)(b) substituted by Finance Act 2005 section 128(1)(d)(i)(II) as respects accounts maintained by a bank or promoter after 1 April 2005.
7 Substituted by Finance Act 2008 section 123(1)(b)(ii) as respects any statement that falls to be delivered by a bank or promoter after 1 April 2008.
8 Subs(1)(d)-(g) inserted by Finance Act 2005 section 128(1)(d)(i)(III) as respects accounts maintained by a bank or promoter after 1 April 2005.
(2)(a) In this subsection-
"account" means an account maintained by a promoter to which amounts in respect of goods, services or cash obtained by an individual by means of a charge card are charged;
["account holder" means the person in whose name an account is maintained by a promoter;]1
["chargeable period" means the 12 month period ending on 1 April 2009 and each subsequent 12 month period;]2
"charge card" means a card (other than a card known as "an in-house card") issued by a person (in this section referred to as "a promoter") to an individual having an address in the State by means of which goods, services or cash may be obtained by the individual and amounts in respect of the goods, services or cash may be charged to the account;
["charge card", in relation to an account, means a charge card used to obtain goods, services or cash, amounts in respect of which are charged to the account;]3
"company charge card" means-
(i) a charge card issued by a promoter to a person (other than an individual) having an address in the State which, if it were issued to an individual, would be regarded as a charge card, or
(ii) a charge card issued by a promoter to an employee, nominee or agent of such a person in such person's capacity as such employee, nominee or agent;
...4
["letter of closure", in relation to an account, means a letter, in such form as the Commissioners may specify, issued during a relevant period by a promoter to an account holder in respect of an account which has been closed during the relevant period-
(i) confirming that the account holder has, during the relevant period, accounted for the amount of stamp duty which the promoter is required to pay in respect of charge cards, in relation to the account, for the relevant period and stating the number of cards in respect of which the promoter is so liable to pay, and
(ii) confirming, where it is the case, that the account holder has, during the relevant period accounted for the amount of stamp duty which another promoter (not being a branch of the same promoter) is required to pay for the relevant period in respect of charge cards in relation to another account which has been closed during the relevant period and stating the number of cards in respect of which that other promoter is so liable to pay,
"relevant period" means a 12 month period ending on 1 April in any year commencing with the 12 month period ending on 1 April 2006;
"replacement account" means an account that is opened and maintained by a promoter in the name of an account holder during a relevant period-
(i) where an account (in this section referred to as an "original account") in the name of the account holder was, in the relevant period, previously closed by the promoter, or
(ii) where the account holder has furnished, during the relevant period, a letter of closure issued by another promoter (not being a branch of the same promoter) in relation to an account in the name of the account holder which was closed during the relevant period;
"replacement card" means a charge card in relation to a replacement account.]5
"supplementary card" means a company charge card which is issued by a promoter to a person (other than an individual) and is additional to another company charge card issued by the promoter to that person.
[[(b) A promoter shall, within 3 months of the end of each relevant period, deliver to the Commissioners a statement in writing showing in respect of the charge cards issued or renewed by the promoter and expressed to be valid at any time during the relevant period-
(i) the number of cards that are replacement cards, and
(ii) the number of cards that are not replacement cards.]6
(c) There shall be charged on every statement delivered in accordance with paragraph (b) a stamp duty at the rate of [€30]7 in respect of each charge card, company charge card and supplementary card included in the number of cards shown in the statement.]8
[(d) Notwithstanding paragraph (c), stamp duty shall only be chargeable on replacement cards in relation to a replacement account maintained by a promoter at any time during a relevant period-
(i) where the replacement account replaces an account maintained by the same promoter, to the extent that the number of such charge cards, in relation to the account, exceeds the number of charge cards in relation to the original account, or
(ii) where the replacement account replaces an account maintained by another promoter, to the extent that the number of such charge cards, in relation to the account, exceeds the aggregate number of charge cards stated in the letter of closure in relation to that other account.
(e) A promoter shall not issue a letter of closure during a relevant period in respect of an account that has been closed during the relevant period where the account holder has not accounted for the amount of stamp duty which the promoter is required to pay in respect of the charge cards to which the account relates, for the relevant period. (f) Where a promoter treats an account as a replacement account by virtue of the account holder furnishing a letter of closure, the promoter shall not, by virtue of that letter, treat any other account as a replacement account. (g) A promoter shall not issue more than one original letter of closure in respect of an account and may only issue a duplicate letter of closure to an account holder to whom the original letter of closure issued where the promoter is satisfied that the original letter of closure has been lost or destroyed and where such duplicate letter states that it is a duplicate of an original letter of closure.]9
Amendments
1 Definition of "account holder " inserted by Finance Act 2005 section 128(1)(d)(ii)(I)(A) as respects accounts maintained by a promoter after 1 April 2005.
2 Definition of "chargeable period" inserted by Finance Act 2008 section 123(1)(b)(iii)(I) as respects any statement that falls to be delivered by a bank or promoter after 1 April 2008.
3 Definition of "charge card" inserted by Finance Act 2005 section 128(1)(d)(ii)(I)(B) as respects accounts maintained by a promoter after 1 April 2005.
4 Definition of "quarter" deleted by Finance Act 2003 section 140(1)(c)(iii)(II)(A) as respects any statment which fails to be delivered by a promoter under section 124 in respect of a due date falling after 1 April 2003.
5 Definitions of "letter of closure", "relevant period", "replacement account" and "replacement card" inserted by Finance Act 2005 section 128(1)(d)(ii)(I)(C) as respects accounts maintained by a promoter after 1 April 2005.
6 Para (b) substituted by Finance Act 2005 section 128(1)(d)(ii)(II) as respects accounts maintained by a promoter after 1 April 2005.
7 Substituted by Finance Act 2008 section 123(1)(b)(iii)(II) as respects any statement that falls to be delivered by a bank or promoter after 1 April 2008.
8 Paras (b)-(c) substituted by Finance Act 2003 section 140(1)(c)(iii)(II)(B) for paras (c) and (d) as respects any statment which fails to be delivered by a promoter under section 124 in respect of a due date falling after 1 April 2003.
9 Paras (d)-(g) inserted by Finance Act 2005 section 128(1)(d)(ii)(III) as respects accounts maintained by a promoter after 1 April 2005.
(3) There shall be furnished to the Commissioners by a bank or a promoter, as the case may be, such particulars as the Commissioners may deem necessary in relation to any statement required by this section to be delivered by the bank or promoter.
(4)(a) The duty charged by subsection (1)(c) on a statement delivered by a bank pursuant to subsection (1)(b)[, less any preliminary duty charged on a statement required to be delivered in accordance with section 124A in respect of the same chargeable period,]1 shall be paid by the bank on delivery of the statement.
(b) The duty charged by subsection (2)(c) on a statement delivered by a promoter pursuant to subsection (2)(b)[, less any preliminary duty charged on a statement required to be delivered in accordance with section 124A in respect of the same chargeable period,]1 shall be paid by the promoter on delivery of the statement.
Amendments
1 Inserted by Finance Act 2008 section 123(1)(b)(iv) as respects any statement that falls to be delivered by a bank or promoter after 1 April 2009.
(5)(a) In this subsection "due date" means-
(i) in relation to a statement required to be delivered pursuant to subsection (1)(b), [1 April]1 in the year in which the statement is required by that subsection to be delivered to the Commissioners, and
(ii) in relation to a statement required to be delivered pursuant to subsection (2)(b), [[1 April]1 in the year in which]2 the statement is required by that subsection to be delivered to the Commissioners.
(b) In the case of failure by a bank or promoter, as the case may be, to deliver any statement required by subsection (1) or (2) within the time specified in those subsections or of failure to pay the duty [required to be paid in accordance with this section]3, the bank or promoter, as the case may be, shall be liable to pay, ...4 in addition to the duty, [interest on the duty, calculated in accordance with section 159D,]5 from the due date until the day on which the duty is paid and also, by means of [penalty]6, a sum of [€380]7 for each day the duty remains unpaid after the expiration of 3 months from the due date ...8.
Amendments
1 Substituted by Finance Act 2005 section 128(1)(d)(iii) as respects accounts maintained by a promoter on or after 1 April 2005.
2 Substituted by Finance Act 2003 section 140(1)(c)(iv) as respects any statement which falls to be delivered by a promoter under section 124 in respect of a due date falling after 1 April 2003.
3 Substituted by Finance Act 2008 section 123(1)(b)(v) as respects any statement that falls to be delivered by a bank or promoter after 1 April 2009.
4 Deleted by Finance (No. 2) Act 2008 section 98 and Schedule 5 Part 5 Chapter 2 para 7(r)(i) from 24 December 2008 and to the extent that Chapter 3A applies to penalties incurred under the Stamp Duties Consolidation Act 1999 before 24 December 2008 which by 24 December 2008 have not been paid, it shall not apply to such penalties which are in the form of interest accrued under any provisions of the act.
5 Substituted by Finance Act 2005 section 145(3) and Schedule 5 Part 2.
6 Substituted by Finance (No. 2) Act 2008 section 98 and Schedule 5 Part 5 Chapter 2 para 7(r)(ii) from 24 December 2008 and to the extent that Chapter 3A applies to penalties incurred under the Stamp Duties Consolidation Act 1999 before 24 December 2008 which by 24 December 2008 have not been paid, it shall not apply to such penalties which are in the form of interest accrued under any provisions of the act.
7 Substituted by Finance Act 2001 section 240(2) and Schedule 5 as respects any act or omission which takes place or begins on or after 1 January 2002.
8 Repealed by Finance (No. 2) Act 2008 section 97 and Schedule 4 para 2 as respects any tax that becomes due and payable on or after 1 March 2009.
What interest and penalty apply for failure to file a statement or pay duty on time?
(5) A bank or promoter who does not file the statement or pay the duty at the time of filing must pay penalty interest at the rate of 0.0219% for each day or part of a day the duty remains unpaid after the due date....
(5A) A bank or a promoter is required to retain any original letter of closure or any duplicate of such letter received from an account holder for a period of 4 years from the date of receipt of such letter.
Amendments
Subs (5A) inserted by Finance Act 2005 section 128(1)(d)(iv) as respects accounts maintained by a promoter after 1 April 2005.
(5B) A letter of closure, in relation to an account, shall only be issued to one person in whose name the account is maintained notwithstanding that there is more than one such person.
(6) The delivery of any statement required by subsection (1) or (2) may be enforced by the Commissioners under section 47 of the Succession Duty Act, 1853, in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.
(7) A bank or a promoter, as the case may be, shall be entitled to charge to the relevant account the amount of the stamp duty payable under this section by reference to that account or by reference to the charge card, company charge card or supplementary card to which the account relates [at the end of the relevant period or at the time when the account maintained by the bank or promoter in the name of the account holder is closed where that occurs during the relevant period]1 and may apply the terms and conditions governing that account to interest on that amount.
Amendments
1 Inserted by Finance Act 2008 section 123(1)(b)(vi) as respects any statement that falls to be delivered by a bank or promoter after 1 April 2009.
