Finance Act, 1944

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Emergency allowances in respect of certain machinery or plant.

8.—(1) Where—

(a) a person shows to the satisfaction of the Revenue Commissioners—

(i) that machinery or plant has been acquired by him during the appointed period for the sole purpose of overcoming difficulties in the carrying on by him of a trade chargeable to tax under Schedule D of the Income Tax Act, 1918, and

(ii) that those difficulties are due exclusively to circumstances created by or arising from the present national emergency (including circumstances continuing after the termination of that emergency), and

(iii) that it is likely that the said machinery or plant will, before the expiration of the appointed period, cease to be employed by that person for the purpose of carrying on the said trade, and

(b) that person applies, in accordance with this section, to the Revenue Commissioners for an allowance under this section in respect of the said machinery or plant in respect of any year of assessment falling wholly or partly within the appointed period, and

(c) that person shows to the satisfaction of the Revenue Commissioners that, during the year of assessment to which the application relates, he was possessed of the said machinery or plant,

the Revenue Commissioners may cause such allowance (in this section referred to as an emergency allowance) as they consider just to be made, by repayment or otherwise, in respect of the said machinery or plant from the assessment made on him for the year of assessment to which the application relates in respect of the profits of the said trade.

(2) Application to the Revenue Commissioners for an emergency allowance in relation to any year of assessment ended on or before the 5th day of April, 1944, may be made within twelve months after the passing of this Act and a similar application in relation to any subsequent year of assessment may be made within twelve months after the end of such year.

(3) Where, before the expiration of the appointed period, machinery or plant, in respect of which emergency allowances have been made to any person, either is sold or has ceased to be employed by that person for the purpose of carrying on the trade for which it was acquired, the Revenue Commissioners may review the said emergency allowances—

(a) in case the said machinery or plant is so sold, after the sale, or

(b) in case the said machinery or plant is not so sold, but has ceased to be so employed, after the expiration of the appointed period.

(4) The following provisions shall have effect in relation to or in consequence of a review under sub-section (3) of this section of the emergency allowances made to any person, that is to say—

(a) for the purpose of such review the Revenue Commissioners may compare the following amounts, that is to say:—

(i) the net cost (as hereinafter defined in this sub-section) to the said person of the machinery or plant in respect of which the said emergency allowances were made, and

(ii) the total allowances (as hereinafter defined in this sub-section) made to the said person;

(b) for the purposes of the said comparison, the said net cost shall be taken to be the amount by which the actual cost to the said person of the installation of the said machinery or plant exceeds the aggregate of—

(i) the sum or sums (if any) provided by way of subsidy or grant out of public funds towards the said installation, and

(ii) if the said machinery or plant is sold before the expiration of the appointed period, the amount for which the said plant or machinery was sold, or, if the said machinery or plant is not sold before the expiration of the appointed period but ceases before the expiration of the appointed period to be employed for the purposes of carrying on the trade for which it was acquired, the amount for which, in the opinion of the Revenue Commissioners, the said plant or machinery is worth to be sold at the expiration of the appointed period;

(c) for the purposes of the said comparison, the said total allowances shall be taken to be the aggregate of—

(i) all emergency allowances made to the said person in respect of the said machinery or plant, and

(ii) all allowances made to the said person, in respect of the said machinery or plant, under or by reason of Eule 6 or Rule 7 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, or section 3 of the Finance Act, 1942 (No. 14 of 1942), for the year of assessment during which the appointed period expires and for any previous year of assessment during which the said machinery or plant was possessed by him or, if the said machinery or plant is sold before the expiration of the appointed period, for the year of assessment in which it was sold and for any previous year during which the said machinery or plant was possessed by him;

(d) if the said net cost exceeds the said total allowances, the Revenue Commissioners may, by repayment or otherwise, make such further emergency allowance as is in their opinion just;

(e) if the said total allowances exceed the said net cost, the emergency allowances made to the said person may be revised and such additional assessments as the Revenue Commissioners consider to be necessary may be made on the said person for any year of assessment in respect of which any emergency allowance was granted to him.

(5) Where, after the expiration of the appointed period, machinery or plant, in respect of which emergency allowances are made to any person, continues to be employed by that person for the purpose of carrying on the trade for which it was acquired, the Revenue Commissioners may review the said emergency allowances and may make such additional assessments as may be necessary to revoke the said emergency allowances.

(6) In this section, the expression “the appointed period” means the period which commenced on the date of the passing of the Emergency Powers Act, 1939 (No. 28 of 1939), and which will end twelve months after the expiration of that Act.