Finance Act, 1990

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Basis of assessment: consequential provisions.

20.—(1) As respects the year 1990—91 and subsequent years of assessment, Schedule 18 to the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution, in paragraphs II, III and IV of “the year of assessment” for “the preceding year” in each place where it occurs, and

(b) by the deletion, in paragraph VI, of “or of the preceding year, as the case shall require”,

and the said paragraphs II, III, IV and VI, as so amended, are set out in the Table to this subsection.

TABLE

II.—By or for Every Person Carrying on any Trade or Exercising any Profession to be Charged Under Schedule D.

The amount of the profits or gains thereof arising within the year of assessment.

III.—By Every Person Entitled to Profits of an Uncertain Value Not Before Stated, or any Interest, Annuity, Annual Payment, Discount or Dividend, to be Charged Under Schedule D.

The full amount of the profits or gains arising therefrom within the year of assessment.

IV.—By Every Person Entitled to or Receiving Income From Securities or Possessions out of the State to be Charged Under Schedule D.

(1) The full amount arising within the year of assessment, and the amount of every deduction or allowance claimed in respect thereof, together with the particulars of such deduction and the grounds for claiming such allowance; or

(2) In the case of any such person who satisfies the Revenue Commissioners that he is not domiciled in the State, or that being a citizen of Ireland he is not ordinarily resident in the State, or in the case of income arising from such securities and possessions aforesaid which form part of the investments of the foreign life assurance fund of an assurance company the full amount of the actual sums received in the State from remittances payable in the State or from property imported, or from money or value arising from property not imported, or from money or value so received on credit or on account in respect of such remittances, property, money or value brought into the State in the year of assessment without any deduction or abatement.

VI.—Statement of Profits of any Public Office, or Employment of Profit, to be Charged Under Schedule E.

The amount of the salary, fees, wages, perquisites, and profits of the year of assessment.

(2) As respects the year 1990-91 and subsequent years of assessment, section 20B (inserted by the Finance Act, 1981 ) of the Finance Act, 1974 , is hereby amended—

(a) by the substitution, in subsection (2), of the following paragraph for paragraph (a):

“(a) An individual who is to be charged to tax for a year of assessment in respect of profits or gains from farming in accordance with the provisions of this subsection shall be so charged under Case I of Schedule D on the full amount of those profits or gains determined upon a fair and just average of the profits or gains from farming of the individual in each of the three years ending on that date in the year of assessment to which it has been customary to make up accounts or, where it has not been customary to make up accounts, on the 5th day of April in the year of assessment.”,

and

(b) by the substitution of the following subsection for subsection (4):

“(4) Where, for a year of assessment, an individual is, by virtue of subsection (3), chargeable to tax in respect of profits or gains from farming in accordance with the provisions of subsection (2) and he was so chargeable for each of the three years of assessment immediately preceding the year of assessment, he may, by notice in writing given to the inspector with the return required under section 10 of the Finance Act, 1988 , for the said year of assessment, elect to be charged to tax for that year of assessment in accordance with the provisions of section 58 of the Income Tax Act, 1967 :

Provided that where, for any year of assessment, in the case of an individual, subsection (3) does not apply by reason of paragraph (a) of the proviso to the said subsection (3), he shall be deemed to be entitled to elect and to have duly elected, as respects that year of assessment, in accordance with this subsection.”.

(3) The provisions specified in the Table to this subsection shall not apply or have effect for the year 1990-91 or any subsequent year of assessment.

TABLE

(a) Paragraphs (a) and (c) in Part I of the Table to section 17 of the Finance Act, 1980 .

(b) Paragraphs (a) and (b) of section 9 of the Finance Act, 1981 .

(4) (a) In this subsection—

“deficiency” means a deficiency computed in accordance with subsection (4) of section 81 of the Income Tax Act, 1967 ;

“excepted premises” means a premises other than a qualifying premises;

“qualifying expenditure” means expenditure which would, but for the provisions of this Chapter, qualify for relief under any of the specified sections;

“qualifying premises” means a premises or building in respect of which any of the specified sections apply;

“specified sections” means—

(i) sections 23 and 24 of the Finance Act, 1981 ,

(ii) sections 21 and 22 of the Finance Act, 1985 , and

(iii) sections 43 and 44 of the Finance Act, 1986 ;

“surplus” means a surplus computed in accordance with subsection (4) of section 81 of the Income Tax Act, 1967 .

(b) Where a person, who is within the charge to income tax, has incurred qualifying expenditure in the year 1989-90, the provisions of section 89 of the Income Tax Act, 1967 , as they apply for the year 1989-90, shall have effect in relation to a deficiency in respect of rent from a qualifying premises as if the other provisions of this Chapter had not been enacted and no surplus from excepted premises arose in the year 1989-90:

Provided that where the person is chargeable under Case V for the year 1989-90 on the basis of the profits or gains arising in that year, the provisions of this paragraph shall not apply or have effect.