Section 5 Agreement as to payment of stamp duty on instruments
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(1) Where in the opinion of the Commissioners it is inexpedient or impractical for any person carrying on a business and who-
(a) in the course of that business, is a party to instruments liable to stamp duty under Schedule 1, or
(b) acts as agent for any such party,
to pay stamp duty in respect of each such instrument, then the Commissioners may enter into an agreement with that person for the delivery to them of accounts for specified periods giving such particulars as may be required of such instruments.
(2) The agreement shall be in such form and shall contain such terms and conditions as the Commissioners consider proper.
(3) Where an agreement has been entered into under this section between the Commissioners and any person, and any instrument to which the agreement relates-
[(a)(i) is issued during the period the agreement is in force, where the agreement is one that relates to the issue of such instrument, or
(ii) is processed during the period the agreement is in force, where the agreement is one that relates to the processing of such instrument,
and]1
(b) contains a statement that the appropriate stamp duty has been or will be paid to the Commissioners in accordance with this section,
then that instrument shall not be chargeable with any stamp duty but in lieu of such stamp duty, and by way of composition, there shall be charged, in respect of the instruments to which the agreement relates which [were issued or processed, as the case may be,]2 during each period of account under that agreement a stamp duty of an amount equal to the aggregate of the amounts of stamp duty which, but for this section, would have been chargeable on each of the instruments concerned, and the stamp duty chargeable under this subsection (by means of such composition) shall be paid by the person to the Commissioners on the delivery of the account.
Amendments
1 Para (a) substituted by Finance (No. 2) Act 2008 section 80(1)(a) as respects agreements (i.e. arrangements to which section 5 relates) entered into on or after 1 January 2009.
2 Substituted by Finance (No. 2) Act 2008 section 80(1)(b) as respects agreements (i.e. arrangements to which section 5 relates) entered into on or after 1 January 2009.
If I am a business person with a composition agreement in force, when do I pay the stamp duty?
(3) This rule applies where having made a (composition) agreement with Revenue, you issue, while the agreement is in force, an instrument containing a statement that stamp duty will be paid to Revenue under the terms of the agreement....
(3A) For the purposes of subsection (3) "processed", in relation to an instrument that is a bill of exchange, means a bill of exchange that has been presented for payment and has been paid.
Amendments
Subs (3A) inserted by Finance (No. 2) Act 2008 section 80(1)(c) as respects agreements (i.e. arrangements to which section 5 relates) entered into on or after 1 January 2009.
(4) Where a person makes default in delivering any account required by any agreement under this section or in paying the duty payable on the delivery of any such account, the person shall be liable to a penalty not exceeding [€125]1 for every day during which the default continues and shall also be liable to pay, in addition to the duty, [interest on the duty ...2 calculated in accordance with section 159D,]3 from the date when the default begins.
Amendments
1 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.
2 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.
3 Substituted by Finance Act 2005 section 145(3) and Schedule 5 Part 2.
(5) Section 126B (inserted by the Finance Act 2008) shall, with any necessary modifications, apply to an account relating to a specified period within the meaning of this section as it applies to a statement within the meaning of that section.
Amendments
Subs (5) inserted by Finance Act 2008 section 112 for 2008 and later tax years.
