Willie O'Dea (Limerick East, Fianna Fail)
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I move:

(1) THAT the Value-Added Tax Act 1972 (No. 22 of 1972) be amended

(a) in section 1

(i) by inserting the following definition after the definition of "assignment":

"'auction scheme' has the meaning assigned to it by section 10B",

and

(ii) in paragraph (b) of the definition of 'taxable dealer', by substituting "including a means of transport and agricultural machinery" for "other than a means of transport",

(b) in section 10A-

(i) in subsection (1), in the definition of 'second-hand goods', by substituting "including

means of transport (within the meaning of section 12B) and agricultural machinery (within the meaning of section 12C), purchased or acquired on or after 1 January 2010, but not including" for "other than means of transport, agricultural machinery (within the meaning of section 12C),", and

(ii) in subsection (13), by inserting "However, where an accountable person acquires a means of transport to which the margin scheme has been applied and that person subsequently supplies that means of transport, the provisions of this subsection shall not apply to that supply but the provisions of section 12B(10) shall apply to that supply." after "that supply.",

(c) in section 10B(10), by inserting "However, where an accountable person acquires a means of transport to which the auction scheme has been applied and that person subsequently supplies that means of transport, the provisions of this subsection shall not apply to that supply but the provisions of section 12B(10) shall apply to that supply." after "that supply.",

(d) in section 12B

(i) by deleting the proviso to subsection (4), and

(ii) by inserting the following subsections after subsection (11)

"(12) (a) Subject to paragraph (b), where a taxable dealer purchases or acquires a means of transport referred to in subsection (2) in the period from 1 January 2010 to 30 June 2010 (in this subsection referred to as the 'transitional period') the amount of residual tax referred to in subsection (4) which that taxable dealer is entitled to deduct shall be restricted to

(i) 40 per cent of the residual tax in the case of a means of transport purchased or acquired in the taxable period beginning on 1 January 2010,

(ii) 30 per cent of the residual tax in the case of a means of transport purchased or acquired in the taxable period beginning on 1 March 2010, and

(iii) 20 per cent of the residual tax in the case of a means of transport purchased or acquired in the taxable period beginning on 1 May 2010.

(b) The entitlement to restricted residual tax as provided for in paragraph (a) applies only on the occasion of the first purchase or acquisition by a taxable dealer of a means of transport referred to in subsection (2) which occurs on or after 1 January 2010, and does not apply to any subsequent purchase or acquisition of that means of transport by that or any other taxable dealer.

(c) Where a taxable dealer purchased or acquired a means of transport referred to in subsection (2) prior to 1 January 2010 and during the transitional period supplies that means of transport to another taxable dealer, the supplier shall indicate on the invoice in respect of that supply that the special scheme as provided for by this section has been applied and that restricted residual tax only is applicable.

(d) Where a taxable dealer purchased or acquired a means of transport referred to in subsection (2) prior to 1 January 2010 and during the transitional period supplies that means of transport to a taxable person other than another taxable dealer, the supplier shall indicate on the invoice in respect of that supply that the special scheme as provided for by this section has been applied and that the invoice does not give the right to deduct the tax chargeable on that supply.

(e) Where a taxable dealer opts to apply the margin scheme or applies the auction scheme to the supply of a means of transport referred to in subsection (2) which that dealer purchased or acquired on or after 1 January 2010, the supplier shall indicate on the invoice in respect of that supply that the margin scheme or the auction scheme, as appropriate, has been applied and no residual tax is applicable.

(f) Where during the transitional period a taxable dealer purchases or acquires a means of transport referred to in subsection (2) from a person other than another taxable dealer

(i) the taxable dealer shall take all reasonable steps to establish whether or not the means of transport was acquired during the transitional period by that person from another taxable dealer (in this paragraph referred to as a 'motor trader'), and

(ii) if that person acquired the means of transport from a motor trader during the transitional period, the taxable dealer shall take all reasonable steps to establish whether or not restricted residual tax as provided for in paragraph (a) was deductible by that motor trader or any other taxable dealer in relation to the means of transport.

(13) This section does not apply to a means of transport purchased or acquired on or after 1 July 2010.",

(e) in section 12C

(i) by deleting subsection (4), and

(ii) by inserting the following subsections after subsection (5):

"(6) (a) Subject to paragraph (b), where a taxable dealer purchases or acquires from a flat-rate farmer or a person referred to in subsection (1A) agricultural machinery in the period from 1 January 2010 to 30 June 2010 (in this subsection referred to as the 'transitional period') the amount of residual tax referred to in subsection (3) which that taxable dealer is entitled to deduct shall be restricted to

(i) 40 per cent of the residual tax in the case of agricultural machinery purchased or acquired in the taxable period beginning on 1 January 2010,

(ii) 30 per cent of the residual tax in the case of agricultural machinery purchased or acquired in the taxable period beginning on 1 March 2010, and

(iii) 20 per cent of the residual tax in the case of agricultural machinery purchased or acquired in the taxable period beginning on 1 May 2010.

(b) The entitlement to restricted residual tax as provided for in paragraph (a) applies only on the occasion of the first purchase or acquisition by a taxable dealer of agricultural machinery which occurs on or after 1 January 2010, and does not apply to any subsequent purchase or acquisition of that agricultural machinery by that or any other taxable dealer.

(c) Where during the transitional period a taxable dealer purchases or acquires agricultural machinery from a flat-rate farmer or a person referred to in subsection (1A)

(i) the taxable dealer shall take all reasonable steps to establish whether or not the agricultural machinery was acquired in the transitional period by that flat-rate farmer or that person from another taxable dealer (in this paragraph referred to as an 'agricultural machinery trader'), and

(ii) if that flat-rate farmer or that person acquired the means of transport from an agricultural machinery trader during the transitional period, the taxable dealer shall take all reasonable steps to establish whether or not restricted residual tax as provided for in paragraph (a) was deductible by that agricultural machinery trader or any other taxable dealer in relation to the agricultural machinery.

(7) This section does not apply to agricultural machinery purchased or acquired on or after 1 July 2010.",

(f) in section 16, by inserting the following subsections after subsection (5):

" (6) Every taxable dealer to whom section 12B or 12C applies shall, in addition to records to be kept in accordance with any other provision of this section and regulations, keep a record of the following information, namely

(a) the name and address of each person from whom such taxable dealer purchased or acquired a means of transport or, as the case may be, agricultural machinery in the period from 1 January 2010 to 30 June 2010 in relation to which such taxable dealer deducted residual tax in accordance with section 12B or 12C, as the case may be,

(b) the date on which such means of transport or agricultural machinery was so purchased or acquired,

(c) the amount of such residual tax so deducted in relation to each such means of transport or agricultural machinery, and

(d) the vehicle registration number of each such means of transport or, as the case may be, details of the make, model and, where appropriate, the year of manufacture, the engine number and registration number of each such agricultural machine.

(7) A taxable dealer to whom section 12B or 12C applies, shall, on receipt of a notice in writing to that effect by an officer of the Revenue Commissioners, furnish to that officer within the time specified in the notice (which shall not be less than 21 days from the date of the notice), or to such other officer of the Revenue Commissioners as may be specified in the notice, a copy of the information required to be kept by the taxable dealer under subsection (6).",

and

(g) in section 26, by inserting the following subsection after subsection (3B):

"(3C) A person who fails to comply with a notice issued under section 16(7) shall be liable to a penalty of €4,000.".

(2) THAT this Resolution shall have effect as on and from 1 January 2010.

(3)IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).