Section 87A Stock repo
|
Amendments
Section 87A inserted by Finance Act 2000 section 129(1). See notes after each subsection for effective dates.
(1) In this section-
"equivalent stock" has the meaning assigned to it by section 87 subject to references-
(a) to "obtained from the lender" being read as "transferred to the repo buyer",
(b) to "stock borrowing" being read as "stock transfer",
(c) to "lender" being read as "repo seller",
(d) to "stock borrower" being read as "repo buyer",
(e) to "borrowed stock" being read as "stock transferred", and
(f) to "borrower" being read as "repo buyer";
"repurchase agreement" means an agreement between a person other than an individual (in this section referred to as the "repo seller") and another person other than an individual (in this section referred to as the "repo buyer") whereby the repo seller agrees to sell stock to the repo buyer on terms that the repo seller will repurchase, and the repo buyer will resell, equivalent stock not later than [12 months]1 after the date of the stock transfer;
"stock return" means a transaction or transactions whereby a repo buyer conveys equivalent stock to a repo seller in pursuance of a repurchase agreement and within the [12 month time limit]2 referred to in the repurchase agreement;
"stock transfer" means a transaction whereby a repo seller conveys stock to a repo buyer in pursuance of a repurchase agreement.
Amendments
1 Substituted by Finance Act 2005 section 123(1)(a)(i) in relation to stock transfers executed on or after 25 March 2005.
2 Substituted by Finance Act 2005 section 123(1)(a)(ii) in relation to stock transfers executed on or after 25 March 2005.
(2) Stamp duty shall not be chargeable on a stock transfer or on a stock return.
(3) If and to the extent that the repo seller does not repurchase or cause to be repurchased from the repo buyer before the expiration of the period of [12 months]1 from the date of the stock transfer equivalent stock the repo buyer shall pay to the Revenue Commissioners within 14 days after the expiration of that period the amount of ad valorem duty which would have been chargeable on the stock so transferred if this section had not been enacted.
Amendments
1 Substituted by Finance Act 2005 section 123(1)(b) in relation to stock transfers executed on or after 25 March 2005.
In what circumstances will the relief not apply and what payment provisions apply?
(3) This rule applies where a repo seller does not repurchase equivalent stock from the repo buyer within six months of the stock transfer. In such a case, the repo buyer must, within 14 days of the expiration of the six month period, pay the Revenue...
(4) If any repo buyer fails to duly pay any sum which that repo buyer is liable to pay under subsection (3), that sum, together with-
(a) [interest on that sum calculated in accordance with section 159D,]1 from the first day after the expiration of the period of [12 months]2 referred to in subsection (3) to the date of payment of that sum, and
(b) ...3 [by means of a penalty, a sum equal to 1 per cent]4 of the duty for each day the duty remains unpaid,
...5.
Amendments
1 Substituted by Finance Act 2005 section 145(3) and Schedule 5 Part 2.
2 Substituted by Finance Act 2005 section 123(1)(c) in relation to stock transfers executed on or after 25 March 2005.
3 Deleted by Finance (No. 2) Act 2008 section 98 and Schedule 5 Part 5 Chapter 2 para 7(m) 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.
4 Substituted by Finance Act 2009 section 30(3)(b) from 24 December 2008.
5 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 penalties apply for failure to pay stamp duty due on a non-etempt transfer of stock?
(4) A repo buyer who does not pay the stamp duty is liable to pay interest at 0.0219% for each day or part of a day the duty remains unpaid after the expiration of the 12 month period, together with a further penalty equivalent to 1% of the duty for ...
(5) Every repo buyer shall maintain, for a period of 3 years from the date of the stock transfer, separate records of each stock transfer and any stock return made in respect of that stock transfer and such records shall include, in respect of each stock transfer, the following:
(a) the name and address of the repo seller;
(b) the type, nominal value, description and amount of the stock transferred by the repo seller;
(c) the date on which the stock was transferred to the repo buyer;
(d) the date on which equivalent stock should be repurchased by the repo seller;
(e) the type, nominal value, description and amount of the stock returned by the repo buyer to the repo seller and the date of such return;
(f) where paragraph (a), (b), (c), (d), (e), (f), (g) or (h) of the definition of "equivalent stock" applies, full details of that equivalent stock.
