Finance Act, 1996
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Amendment of section 28 (relief in relation to income from qualifying shipping trade) of Finance Act, 1987. |
54.—(1) Section 28 of the Finance Act, 1987 , is hereby amended by the substitution of the following paragraphs for paragraphs (a) and (b) of the definition of “qualifying ship”: | |
“(a) (i) is owned to the extent of not less than 51 per cent. by a person or persons resident in the State, or | ||
(ii) is the subject of a letting on charter without crew by a lessor not resident in the State, | ||
(b) in the case of a vessel to which paragraph (a) (i) applies, is registered in the State under Part II of the Mercantile Marine Act, 1955 , and, in the case of a vessel to which paragraph (a) (ii) applies, is a vessel in respect of which it can be shown that all the requirements of the Merchant Shipping Acts, 1894 to 1993, have been complied with as if it had been a vessel registered under the said Part II,”. | ||
(2) Paragraph (c) of subsection (4) of section 28 of the Finance Act, 1987 , shall not have effect in the case of a letting on charter of a ship referred to therein where the lease in respect of the ship is a lease, the terms of which comply with the provisions of clauses (I) and (II) of subparagraph (i) of paragraph (b) of subsection (1) of section 30 of the Finance Act, 1994 , and where the lessee produces to the Revenue Commissioners a relevant certificate within the meaning of this section. | ||
(3) (a) In this section, a “relevant certificate” means a certificate issued, with the consent of the Minister for Finance, by the Minister for the Marine in relation to the letting on charter of a ship, certifying, on the basis of a business plan and any other information supplied by the lessee to the Minister for the Marine, that the Minister for the Marine is satisfied that the lease is in respect of a ship which— | ||
(i) will result in an upgrading and enhancement of the lessee's fleet leading to improved efficiency and the maintenance of competitiveness, | ||
(ii) (I) has the potential to create a reasonable level of additional sustainable employment and other socio-economic benefits in the State, or | ||
(II) will assist in maintaining or promoting the lessee's trade in the carrying on of a qualifying shipping activity, and the maintenance of a reasonable level of sustainable employment and other socio-economic benefits in the State, | ||
and | ||
(iii) will result in the leasing of a ship which complies with current environmental and safety standards. | ||
(b) Before issuing the certificate referred to in paragraph (a), the Minister for the Marine shall be satisfied that the said lease is for bona fide commercial purposes and not as part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax. | ||
(4) In this section “lessee”, in relation to a ship provided for leasing, means the person to whom the ship is or is to be leased and includes the successors in title of a lessee. | ||
(5) This section, other than subsection (1), shall apply and have effect as respects a ship, a binding contract in writing for the acquisition or construction of which was concluded on or after the 1st day of July, 1996. |