Finance (No. 2) Act, 1939

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Number 33 of 1939.

FINANCE (No. 2) ACT, 1939.

ARRANGEMENT OF SECTIONS

PART I .

INCOME TAX.

PART II .

CUSTOMS AND EXCISE.

PART III .

DEATH DUTIES.

PART IV .

GENERAL.

FIRST SCHEDULE.

Sugar, Molasses, Glucose, Saccharin—Rates of duties, drawbacks and allowances

SECOND SCHEDULE.

Duties on tobacco

THIRD SCHEDULE.

Spirits (rates of ordinary customs duty)

Number 33 of 1939.

FINANCE (No. 2) ACT, 1939.

AN ACT TO AMEND THE LAW RELATING TO INCOME TAX, TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND EXCISE, AND TO INCREASE THE RATES OF CERTAIN OTHER SUCH DUTIES AND CERTAIN RATES OF ESTATE DUTY, AND FOR THOSE PURPOSES TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE, INCLUDING EXCISE. [14th December, 1939.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

PART I.

Income Tax.

Deductions of income tax after 5th April, 1940.

1.—(1) Every sum paid or deducted in respect of income tax within two months after the 5th day of April, 1940, which consists wholly of a payment or deduction made by virtue of section 6 of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927), in respect of income tax for the year beginning on the 6th day of April, 1940, shall be calculated at the rate of six shillings and sixpence in the pound, and the said section 6 shall apply and have effect in relation thereto as if that rate had been the standard rate of income tax for the year beginning on the 6th day of April, 1939.

(2) The following provisions shall apply and have effect in relation to every sum paid or deducted in respect of income tax within two months after the 5th day of April, 1940, which consists partly of a payment or deduction made in respect of income tax for the year beginning on the 6th day of April, 1939, and partly of a payment or deduction made, by virtue of section 6 of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927), in respect of income tax for the year beginning on the 6th day of April, 1940, that is to say:—

(a) so much of the said sum as consists of a payment or deduction in respect of income tax for the year beginning on the 6th day of April, 1939, shall be calculated at the rate of five shillings and sixpence in the pound, being the standard rate of income tax for that year;

(b) so much of the said sum as consists of a payment or deduction made, by virtue of the said section 6, in respect of income tax for the year beginning on the 6th day of April, 1940, shall be calculated at the rate of six shillings and sixpence in the pound, and the said section 6 shall apply and have effect in relation thereto as if that rate had been the standard rate of income tax for the year beginning on the 6th day of April, 1939.

PART II.

Customs and Excise.

Alteration of duties on sugar.

2.—(1) In lieu of the present customs duties, drawbacks, and allowance in respect of sugar, molasses, glucose, and saccharin, there shall be charged, levied, and paid in respect of all sugar, molasses, glucose, and saccharin imported on or after the 9th day of November, 1939, the customs duties specified in the second column of Part I of the First Schedule to this Act, and there shall be paid and allowed in respect of all sugar, molasses, glucose, and saccharin so imported the drawbacks and allowance set out in Part II of the said First Schedule.

(2) In lieu of the present excise duties, drawbacks, and allowances in respect of sugar, molasses, glucose, and saccharin, there shall, as on and from the 9th day of November, 1939, be charged, levied, and paid in respect of all sugar, molasses, glucose, and saccharin made within the State the excise duties specified in the third and fourth columns of Part I of the First Schedule to this Act, and there shall be allowed and paid in respect of all sugar, molasses, glucose, and saccharin so made, the drawbacks and allowances set out in Part II of the said First Schedule.

(3) Section 40 of the Finance Act, 1932 (No. 20 of 1932), shall apply in relation to the customs duties imposed by this section in like manner as the said section applies in relation to the duties mentioned therein.

(4) The provisions contained in Part III of the First Schedule to the Finance Act, 1925 (No. 28 of 1925), shall apply in relation to the duties, drawbacks, and allowances imposed or allowed by this section in like manner as those provisions apply in relation to the duties, drawbacks, and allowances mentioned in the said First Schedule, but with and subject to the following modifications, that is to say:—

(a) in clause 5, the 9th day of November, 1939, shall be substituted for the 6th day of May, 1925;

(b) in clause 7, the reference to sections 26 and 27 of the said Finance Act, 1925 , shall be construed as a reference to this section.

(5) Section 25 of the Finance Act, 1931 (No. 31 of 1931), shall apply in relation to the duties, drawbacks, and allowances imposed or allowed by this section in like manner as it applies in relation to the duties, drawbacks, and allowances mentioned therein.

(6) Section 24 of the Finance Act, 1933 (No. 15 of 1933), shall not apply or have effect in relation to the customs duties imposed by this section.

Alteration of duties on articles made from or containing sugar, etc.

3.—(1) In lieu of the duties of customs chargeable under section 9 of the Finance Act, 1936 (No. 31 of 1936), there shall be charged, levied, and paid on all articles (with the exceptions hereinafter mentioned) imported on or after the 9th day of November, 1939, and made from or containing sugar or other sweetening matter, a duty of customs at the following rates, that is to say:—

(a) if the article is prescribed in the official import list to be entered on importation by weight, at the rate of two pence and one half-penny the pound, and

(b) if the article is prescribed in the official import list to be entered on importation by measure, at the rate of two shillings and one penny the gallon.

(2) The duty imposed by this section shall not be charged or levied on any of the following articles, that is to say:—

(a) beer,

(b) cider,

(c) cocoa preparations,

(d) condensed full cream milk,

(e) fruits in syrup in sealed tins or cans,

(f) glucose,

(g) herb beer,

(h) honey, including artificial honey,

(i) molasses (including invert sugar and all other sugar and extracts from sugar which cannot be completely tested by the polariscope),

(j) perry,

(k) polishing preparations,

(l) prepared liquid or quasi-liquid sauces or condiments,

(m) saccharin (including substances of a like nature or use),

(n) soaps and soap powders and all descriptions of soap substitutes,

(o) soups,

(p) spirits,

(q) sugar,

(r) articles charged with duty as sugar confectionery,

(s) table waters,

(t) tobacco,

(u) toilet preparations,

(v) wine,

(w) dried or powdered milk,

(x) articles made wholly or partly of dried or powdered milk.

(3) The duty imposed by this section shall be in addition to any duty chargeable in respect of any spirits used in the manufacture or preparation of the article, but in lieu of any duty which might otherwise be chargeable on any other ingredient used in the manufacture or preparation of the article.

(4) Section 40 of the Finance Act, 1932 (No. 20 of 1932), shall apply in relation to the duty imposed by this section in like manner as the said section applies in relation to the duties mentioned therein.

Alteration of rates of duty on tobacco.

4.—(1) The duty of customs on tobacco imposed by section 20 of the Finance Act, 1932 (No. 20 of 1932), shall, in respect of tobacco imported on or after the 9th day of November, 1939, be charged, levied, and paid at the several rates specified in Part I of the Second Schedule to this Act in lieu of the rates at which the said duty is now chargeable by virtue of section 9 of the Finance Act, 1939 (No. 18 of 1939).

(2) The duty of excise on tobacco imposed by section 19 of the Finance Act, 1934 (No. 31 of 1934), shall, as on and from the 9th day of November, 1939, be charged, levied, and paid at the several rates specified in Parts II and III of the Second Schedule to this Act in lieu of the rates at which the said duty is now chargeable by virtue of section 9 of the Finance Act, 1939 (No. 18 of 1939).

(3) Sub-sections (2) to (5) of the said section 19 of the Finance Act, 1934 , shall apply to tobacco which is chargeable with the duty of excise imposed by sub-section (1) of that section at a rate specified in Part II or Part III of the Second Schedule to this Act, and for the purpose of such application references in the said sub-sections (2) to (5) of the said section 19 to Parts I and II respectively of the Sixth Schedule to the said Finance Act, 1934 , shall be construed and have effect as references to Parts II and III respectively of the Second Schedule to this Act.

Alteration of rates of customs duties on beer.

5.—(1) In lieu of the duties of customs imposed by sub-section (1) of section 5 of the Finance Act, 1920 , there shall be charged, levied, and paid on all mum, spruce or black beer, Berlin white beer, and other preparations (whether fermented or not fermented) of a similar character imported on or after the 9th day of November, 1939, a duty of customs at the following rates, that is to say:—

(a) for every thirty-six gallons of beer of which the worts are, or were before fermentation, of a specific gravity not exceeding one thousand two hundred and fifteen degrees—twenty-two pounds and ten shillings;

(b) for every thirty-six gallons of beer of which the worts are, or were before fermentation, of a specific gravity exceeding one thousand two hundred and fifteen degrees—twenty-six pounds and eight shillings.

(2) In lieu of the duty of customs imposed by sub-section (2) of section 5 of the Finance Act, 1920 , there shall be charged, levied, and paid on all beer of any description (other than beer chargeable with the duty imposed by the foregoing sub-section of this section) imported on or after the 9th day of November, 1939, a duty of customs at the rate of five pounds, twelve shillings and sixpence for every thirty-six gallons of beer of which the worts were before fermentation of a specific gravity of one thousand and fifty-five degrees.

(3) In lieu of the drawback payable under sub-section (3) of section 5 of the Finance Act, 1920 , there shall be allowed and paid on exportation or shipment for use as stores of imported beer on which it is shown, to the satisfaction of the Revenue Commissioners, that the duty imposed by either of the foregoing sub-sections of this section has been paid a drawback, calculated according to the original specific gravity of such beer, at the rate of five pounds, twelve shillings and three pence on every thirty-six gallons of beer of which the original specific gravity was one thousand and fifty-five degrees.

(4) Where, in the case of beer which is chargeable with the duty imposed by sub-section (2) of this section or in the case of beer on which drawback under sub-section (3) of this section is payable, the specific gravity of such beer is different from the specific gravity mentioned in the said sub-section (2) or in the said sub-section (3) (whichever is relevant), the said duty or the said drawback (as the case may be) shall be varied proportionately.

(5) Section 24 of the Finance Act, 1933 (No. 15 of 1933), shall not apply or have effect in relation to either of the duties of customs imposed by this section.

Alteration of rates of excise duties on beer.

6.—(1) In lieu of the duty of excise imposed by section 6 of the Finance Act, 1920 , there shall be charged, levied, and paid on all beer brewed within the State on or after the 9th day of November, 1939, a duty of excise at the rate of five pounds and twelve shillings for every thirty-six gallons of worts of a specific gravity of one thousand and fifty-five degrees.

(2) In lieu of the drawback payable under section 6 of the Finance Act, 1920 , there shall be allowed and paid on exportation as merchandise or for use as ship's stores of beer on which it is shown, to the satisfaction of the Revenue Commissioners, that the duty of excise imposed by this section has been paid a drawback calculated according to the original specific gravity of such beer, at the rate of five pounds, twelve shillings and three pence for every thirty-six gallons of which the original specific gravity was one thousand and fifty-five degrees.

(3) In the case of beer of which the specific gravity is different from the specific gravity mentioned in the relevant sub-section of this section, the duty chargeable or the drawback payable (as the case may be) in pursuance of this section shall be varied proportionately.

Alteration of rates of duties on spirits.

7.—(1) The Finance Act, 1920 , shall, in respect of articles imported on or after the 9th day of November, 1939, be amended as follows and shall have effect accordingly, that is to say:—

(a) the Third Schedule to this Act shall be substituted in the said Finance Act, 1920 , for Part I of the First Schedule to that Act;

(b) the references in sub-section (1) of section 3 of the said Finance Act, 1920 , to Part I of the First Schedule to that Act shall be construed and have effect as references to the Third Schedule to this Act.

(2) The duty of excise imposed by sub-section (2) of section 3 of the Finance Act, 1920 , shall, as on and from the 9th day of November, 1939, be charged, levied, and paid at the rate of four pounds, two shillings and sixpence the gallon (computed at proof) in lieu of the rate mentioned in the said sub-section (2).

(3) Nothing in this section shall operate to relieve from or to prejudice or affect the additional customs duties or the additional excise duty in respect of immature spirits imposed by section 9 of the Finance Act, 1926 (No. 35 of 1926).

PART III.

Death Duties.

Increase of certain rates of estate duty.

8.—(1) In the case of persons dying after the 8th day of November, 1939, the rates of estate duty set out in the Second Schedule to the Finance Act, 1931 (No. 31 of 1931), shall, in so far as they relate to estates of which the principal value exceeds ten thousand pounds, be severally increased as follows, that is to say:—

(a) the said rates, in so far as they relate to estates of which the principal value exceeds ten thousand pounds but does not exceed fifty thousand pounds, shall be increased, in the case of each rate, by one-tenth of the amount thereof, and

(b) the said rates, in so far as they relate to estates of which the principal value exceeds fifty thousand pounds, shall be increased, in the case of each rate, by one-fifth thereof.

(2) Where an interest in expectancy within the meaning of Part I of the Finance Act, 1894 , in any property (other than property deemed to pass on a death by virtue of section 26 of the Finance Act, 1931 (No. 31 of 1931), as amended by sections 29 and 30 of the Finance Act, 1934 (No. 31 of 1934)) has, before the 9th day of November, 1939, been bona fide sold or mortgaged for full consideration in money or money's worth, then no other duty on that property shall be payable by the purchaser or mortgagee when the interest falls into possession than would have been payable if this section had not been enacted, and, in the case of a mortgage, any higher duty payable by the mortgagor shall rank as a charge subsequent to that of the mortgagee.

PART IV.

General.

Care and management of taxes and duties.

9.—All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

Short title and construction.

10.—(1) This Act may be cited as the Finance (No. 2) Act, 1939.

(2) Part I of this Act shall be construed together with the Income Tax Acts, and Part II of this Act, so far as it relates to duties of customs, shall be construed together with the Customs Acts and, so far as it relates to duties of excise, shall be construed together with the statutes which relate to the duties of excise and the management of those duties.

FIRST SCHEDULE.

SUGAR, MOLASSES, GLUCOSE, SACCHARIN—RATES OF DUTIES, DRAWBACKS AND ALLOWANCES.

PART I.—DUTIES.

PART II.—DRAWBACKS AND ALLOWANCES.

A.—CUSTOMS.

B.—EXCISE.—SUGAR AND MOLASSES MADE WHOLLY FROM BEET GROWN IN ÉIRE

C.—EXCISE.—ALL OTHER GOODS.

SECOND SCHEDULE.

DUTIES ON TOBACCO.

CUSTOMS.

PART I.

EXCISE.

PART II.

PART III.

THIRD SCHEDULE.

SPIRITS (RATES OF ORDINARY CUSTOMS DUTY).