S.I. No. 394 of 2002

Taxes Consolidation Act 1997 (Date for Payment of Preliminary Corporation Tax) Order 2002

To be made by the Minister for Finance

I, Charlie McCreevy, Minister for Finance, in exercise of the powers conferred on me by section 958 of the Taxes Consolidation Act 1997 ( No. 39 of 1997 ), as amended by section 58 of the Finance Act 2002 ( No. 5 of 2002 ), hereby order as follows:

1.         This Order may be cited as the Taxes Consolidation Act 1997 (Date for Payment of Preliminary Corporation Tax) Order 2002.

2. (1)    For the purposes of section 958 of the Taxes Consolidation Act 1997 ( No. 39 of 1997 ), where the chargeable period (within the meaning of section 950 of that Act) of a company is an accounting period of the company ending in the period --

(a)  which begins on 21 May 2002 and ends on 31 May 2002, then 20 November 2002 is specified in relation to the company as the earlier day referred to in paragraph (e) of subsection (2A) (inserted by section 58(b) of the Finance Act 2002 ( No. 5 of 2002 )) of section 958 of that Act,

(b)  which begins on 21 June 2002 and ends on 30 June 2002, then 20 December 2002 is specified in relation to the company as the earlier day referred to in paragraph (e) of subsection (2A) (inserted by section 58(b) of the Finance Act 2002 ) of section 958 of that Act,

and, accordingly, the second instalment of preliminary tax appropriate to that chargeable period shall be due and payable by the company -

(c)  not later than 20 November 2002 where subparagraph (a) of this paragraph applies, and

(d)  not later than 20 December 2002 where subparagraph (b) of this paragraph applies.

(2)        For the purposes of section 958 of the Taxes Consolidation Act, where the chargeable period (within the meaning of section 950 of that Act) of a company is an accounting period of the company ending in the period -

a.   which begins on 21 December 2002 and ends on 31 December 2002, then 20 November 2002 is specified in relation to the company as the earlier day referred to in paragraphs (b) and (c) of subsection (2A) (inserted by section 58(b) of the Finance Act 2002 ) of section 958 of that Act,

a.   which begins on 21 January 2003 and ends on 31 January 2003, then 20 December 2002 is specified in relation to the company as the earlier day referred to in paragraphs (b) and (c) of subsection (2A) (inserted by section 58(b) of the Finance Act 2002 ) of section 958 of that Act,

and, accordingly, the first instalment of preliminary tax appropriate to that chargeable period shall be due and payable by the company -

(e)  not later than 20 November 2002 where subparagraph (a) of this paragraph applies, and

(f)   not later than 20 December 2002 where subparagraph (b) of this paragraph applies.

EXPLANATORY NOTE

(This note is not part of the instrument and does not purport to be a legal interpretation).

Section 58 of the Finance Act 2002 which amends section 958 of the Taxes Consolidation Act, 1997 provides that the payment date for preliminary tax payable by companies is brought forward to one month before the end of the accounting period. This is being introduced over a 5 year transition period and will be fully effective for accounting periods ending after 2005. During the transition period, preliminary tax is payable in two instalments. The first instalment is due 1 month before the end of the accounting period. The second instalment within 6 months after the end of the accounting period.

Where a payment date is after the 28th day of a month, payment must be made by the 28th of that month.

Nonetheless, section 958 (2A) (inserted by section 58 of the Finance Act, 2002 ) of the Taxes Consolidation Act, 1997 allows the Minister for Finance to make an Order providing that preliminary corporation tax due to be paid in any month be paid on an earlier than the 28th in that month. The provision providing for such an advancement of the payment date applies to both first and second instalments of preliminary corporation tax.

This Order appoints the 20 November 2002 as the payment date for preliminary corporation tax where a company's accounting period ends between the dates --

·1  21 May 2002 to 31 May 2002 (in the case of second instalments) and

·2  21 December 2002 to 31 December 2002 (in the case of first instalments).

Similarly, the 20 December 2002 is appointed the payment date for preliminary corporation tax where a company's accounting period ends between the dates --

·3  21 June 2002 to 30 June 2002 (in the case of second instalments) and

·4  21 January 2003 to 31 January 2003 (in the case of first instalments).

The Order ensures that the Exchequer will receive the benefit of preliminary corporation tax payments within the month in which they are payable and that payments due in 2002 will be received in 2002.