Finance Act, 1980

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Number 14 of 1980

FINANCE ACT, 1980

ARRANGEMENT OF SECTIONS

PART I

Income Tax, Sur-Tax, Resource Tax, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Chapter II

Taxation of Married Persons

Chapter III

Taxation of Farming Profits

Chapter IV

Resource Tax

Chapter V

Corporation Tax

Chapter VI

Corporation Tax: Relief in Relation to Certain Income of Manufacturing Companies

Chapter VII

Income Tax and Corporation Tax

Chapter VIII

Anti-evasion

Chapter IX

Capital Gains Tax

PART II

Customs and Excise

PART III

Value-Added Tax

PART IV

Capital Acquisitions Tax

PART V

Stamp Duties

PART VI

Miscellaneous

FIRST SCHEDULE

Amendment of Enactments

Part I

Amendments Consequential on Changes in Personal Reliefs

Part II

Provisions in respect of Certain Retirement Benefits, etc.

Part III

Amendments Consequential on Provisions Relating to the Taxation of Married Persons

SECOND SCHEDULE

Rates of Excise Duty on Spirits

THIRD SCHEDULE

Rates of Excise Duty on Tobacco Products

FOURTH SCHEDULE

Part I

Rates of Excise Duty on Wine

Part II

Rates of Excise Duty on Made Wine

FIFTH SCHEDULE

Rates of Excise Duty on Cider and Perry

SIXTH SCHEDULE

Rates of Excise Duty on Televisions

SEVENTH SCHEDULE

Rates of Excise Duty on Certain Licences

Part I

Intoxicating Liquor Licences

Part II

Firearm Certificates

Part III

Gaming Licences

Part IV

Other Licences

EIGHTH SCHEDULE

Enactments Repealed

Number 14 of 1980

FINANCE ACT, 1980

AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE) AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE. [25th June, 1980]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Income Tax, Sur-Tax, Resource Tax, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Exemption from income tax.

1.—(1) Where, for the year 1980-81 or any subsequent year of assessment—

(a) an individual makes a claim for the purpose, makes a return in the prescribed form of his total income for that year and proves that it does not exceed the specified amount, he shall be entitled to exemption from income tax, or

(b) an individual makes a claim for the purpose, makes a return in the prescribed form of his total income for that year and proves that it does not exceed £5,000, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 60 per cent. of the amount by which his total income exceeds the specified amount, reduced to that sum.

(2) In this section “the specified amount” means—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £3,400, and

(b) in any other case, £1,700.

Age exemption.

2.—(1) This section applies, for the year 1980-81 or any subsequent year of assessment, to an individual who makes a claim for the purpose, makes a return in the prescribed form of his total income for that year and proves that, at some time during the year of assessment, either he or, in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , his spouse, was of the age of sixty-five years or upwards.

(2) Where an individual to whom this section applies proves that his total income for a year of assessment for which this section applies does not exceed the specified amount, he shall be entitled to exemption from income tax for that year.

(3) Where an individual to whom this section applies proves that his total income for a year of assessment for which this section applies does not exceed £10,000, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 60 per cent. of the amount by which his total income exceeds the specified amount, reduced to that sum.

(4) All such provisions of the Income Tax Acts as apply in relation to the deductions specified in sections 138 to 143 of the Income Tax Act, 1967 , shall apply in relation to exemption from or any reduction of tax under this section or under section 1.

(5) Section 7 of the Finance Act, 1977 , shall not apply or have effect in relation to the year 1980-81 or any subsequent year of assessment.

(6) In this section “the specified amount” means—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in paragraph (a) of the said section 138, £4,000:

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £5,000;

(b) in any other case, £2,000:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £2,500.

(7) In this section and in section 1 “total income” has the same meaning as in section 1 of the Income Tax Act, 1967 , but includes income arising outside the State which is not chargeable to tax.

Amendment of Part VI (differentiation and graduation of tax by means of reliefs) of Income Tax Act, 1967.

3.—As respects the year 1980-81 and subsequent years of assessment, Part VI of the Income Tax Act, 1967 , is hereby amended by the substitution for sections 138 and 138A of the following sections:

Personal allowances.

“138.—The deductions specified in this section for the purpose of ascertaining the taxable income (within the meaning of section 137) of an individual for a year of assessment are—

(a) in a case in which the claimant is a husband—

(i) who is assessed to tax for the year of assessment in accordance with the provisions of section 194, or

(ii) who proves that his wife is not living with him but that she is wholly or mainly maintained by him for the year of assessment and that he is not entitled, in computing his income for tax purposes for that year, to make any deduction in respect of the sums paid by him for the maintenance of his wife,

a deduction of £2,230:

Provided that, where, but for this proviso, the husband would be entitled to a deduction of £2,230 under the foregoing provision he shall, if he proves that his marriage took place in that year of assessment, be entitled to a deduction of £2,345 in lieu of the deduction of £2,230,

(b) in a case in which the claimant in the year of assessment—

(i) is a widowed person, a deduction of £1,185, or

(ii) is a widow whose husband has died in that year of assessment, a deduction of £2,230, and

(c) in any other case, a deduction of £1,115.

Additional allowance for widows and others in respect of children.

138A.—If for any year of assessment the claimant proves that—

(a) he is a person who is not entitled to a deduction mentioned in paragraph (a) or paragraph (b) (ii) of section 138, and

(b) he is entitled, for that year of assessment, to a deduction under section 141 in respect of a child resident with him,

he shall be entitled to a deduction of £500:

Provided that this section shall not apply for any year of assessment in the case of a husband or a wife where the wife is living with her husband.

Employee allowance.

138B.—(1) If, for any year of assessment, the claimant proves that his total income for the year consists of or includes emoluments (including in the case where the claimant is a husband who is assessed to tax in accordance with the provisions of section 194, any emoluments of his wife which are deemed to be income of his by that section for the purposes referred to in that section)—

(a) a deduction of £400 shall be made from so much, if any, of the emoluments (but not including, in the case where the claimant is a husband assessed as aforesaid the emoluments, if any, of his wife) as arise to the claimant, and

(b) in the case where the claimant is a husband assessed as aforesaid, a deduction of £400 shall be made from so much, if any, of the emoluments as arise to his wife.

(2) In this section—

“emoluments” means emoluments to which Chapter IV of Part V applies, or is applied, save that it does not include—

(a) emoluments paid, directly or indirectly, by a body corporate (or by any person who would be regarded as connected with the body corporate for the purposes of Part IV of the Finance (Miscellaneous Provisions) Act, 1968 ) to a proprietary director of the body corporate or to the spouse or child of such a proprietary director, and

(b) emoluments paid, directly or indirectly, by an individual (or by a partnership in which the individual is a partner) to the spouse or child of the individual;

“proprietary director” has the meaning assigned to it by section 226 of the Income Tax Act, 1967. ”.

Personal reliefs.

4.—(1) Where a deduction falls to be made from the total income of an individual for the year 1980-81 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).

TABLE

(2) Section 6 of the Finance Act, 1974 , and section 3 of the Finance Act, 1979 , shall have effect subject to the provisions of this section.

(3) Part I of the First Schedule shall have effect for the purpose of supplementing subsection (1).

Amendment of provisions relating to relief for blind persons.

5.— Section 11 of the Finance Act, 1971 , is hereby amended—

(a) by the substitution of the following subsection for subsections (2) and (3):

“(2) Subject to the provisions of this section, an individual who, in the manner prescribed by the Income Tax Acts, makes a claim in that behalf, makes a return in the prescribed form of his total income and proves that—

(a) he was for the whole or any part of the year of assessment a blind person, or

(b) he is assessed to tax for the year in accordance with the provisions of section 194 of the Income Tax Act, 1967 , and that his wife was for the whole or any part of the year a blind person, shall, in computing the amount of his taxable income for the year of assessment, be entitled to have a deduction of £330 made from his total income:

Provided that in a case where paragraph (b) applies and the claimant proves in addition that he was for the whole or any part of the year a blind person, he shall be entitled to a deduction of £660 in lieu of the said deduction of £330.”,

and

(b) by the deletion of subsections (6) and (8).

Relief in respect of life assurance premiums and certain other payments.

6.—(1) Section 143 of the Income Tax Act, 1967 , is hereby amended:

(a) by the substitution in paragraph (b) of subsection (2) of “spouse” for “wife”,

(b) by the insertion in subsection (6) of “, in a case in which the husband is assessed to tax in accordance with the provisions of section 194,” after “the same deduction shall”,

and the said paragraph (b) and the said subsection (6), as so amended, are set out in the Table to this subsection.

TABLE

(b) the insurance, or, as the case may be, the deferred annuity, is on the life of the claimant or on the life of his spouse; and

(6) Where a premium is paid by a wife out of her separate income in respect of an insurance on her own life or the life of her husband or a contract for any deferred annuity on her own life or the life of her husband, the same deduction shall, in a case in which the husband is assessed to tax in accordance with the provisions of section 194, be made as if the premium were a premium paid by her husband for an insurance on his own life or for a contract for a deferred annuity on his own life, and this section shall apply accordingly.

(2) Section 152 (1) of the Income Tax Act, 1967 , is hereby amended by the addition thereto of the following proviso:

“Provided also that in a case where the claimant is a husband who is assessed to tax in accordance with the provisions of section 194, this subsection shall have effect as if ‘£2,000’ were substituted for ‘£1,000’.”.

Amendment of provisions relating to relief in respect of interest.

7.—(1) Section 496 of the Income Tax Act, 1967 , is hereby amended—

(a) by the insertion of the following subsection after subsection (2):

“(2A) In relation to any interest paid in respect of any period beginning on or after the 6th day of April, 1980, notwithstanding the provisions of subsection (1), no repayment of tax shall be made under this section for any year of assessment—

(a) in the case of a husband, who is assessed to tax for the year of assessment in accordance with the provisions of section 194, on the excess of the interest over £4,800,

(b) in the case of a widowed person, on the excess of the interest over £3,500, or

(c) in any other case, on the excess of the interest over £2,400.”;

(b) by the insertion after subsection (3) of the following subsection:

“(3A) Where, in relation to interest paid in respect of any period beginning on or after the 6th day of April, 1980, relief is claimed by a person by virtue of more than one of the following provisions, that is to say, this section, section 76 (1) (c) and paragraph 1 (2) of Part III of Schedule 6, relief shall not be given to such person in respect of the part (if any) of the aggregate amount of interest paid by him that exceeds the appropriate amount specified in subsection (2A) in relation to the year of assessment 1980-81 and subsequent years of assessment.”:

and

(c) in subsection (4), by the substitution for “subsection (2)” of “subsections (2) and (2A)”.

(2) In relation to annual interest in respect of any period beginning on or after the 6th day of April, 1980, neither section 76 (1) (c) of the Income Tax Act, 1967 , nor paragraph 1 (2) of Part III of Schedule 6 to that Act shall apply for any year of assessment—

(a) in the case of a husband assessed to tax for that year of assessment in accordance with the provisions of section 194 of the Income Tax Act, 1967 , to the excess of the interest over the amount specified in paragraph (a) of section 496 (2A) of that Act,

(b) in the case of a widowed person, to the excess of the interest over the amount specified in paragraph (b) of the said section 496 (2A), or

(c) in any other case, to the excess of the interest over the amount specified in paragraph (c) of the said section 496 (2A).

(3) (a) Section 38 of the Finance Act, 1974 , is hereby amended—

(i) by the substitution for subsection (1) of the following subsection:

“(1) In relation to connected persons, the reference in section 496 of the Income Tax Act, 1967 , and sections 44 and 52 to any sum shall, in the case of each such person, be taken to be a reference to the proportion of that sum which the interest paid by that person bears to the aggregate of the interest paid by all the connected persons.”

and

(ii) by the substitution in subsection (2) for “1968” of the following:

“1968:

Provided that in a case where a husband and wife are assessed to income tax for a year of assessment in accordance with the provisions of section 193 of the Income Tax Act, 1967 , they shall not, for that year of assessment, be connected persons for the purposes of this subsection.”.

(b) Section 9 of the Finance Act, 1979 , shall have effect for the year 1980-81 and subsequent years of assessment as if paragraph (b) in the Table were deleted.

(4) Section 10 of the Finance Act, 1979 , is hereby amended, as respects the year 1980-81 and subsequent years of assessment, by the substitution in subsection (2) of the following definition for the definition of “A”:

“A is—

(i) in the case of a husband who is assessed to tax in accordance with the provisions of section 194 of the Income Tax, 1967, £4,800,

(ii) in the case of a widowed person, £3,500, or

(iii) in any other case, £2,400.”.

Charge of income tax for 1980-81 and subsequent years.

8.—Where a person who is charged to income tax for the year 1980-81 or any subsequent year of assessment is an individual (other than an individual acting in a fiduciary or representative capacity), he shall, notwithstanding anything in the Income Tax Acts but subject to section 5 (3) of the Finance Act, 1974 , be charged to tax on his taxable income—

(a) in a case in which he is assessed to tax otherwise than in accordance with the provisions of section 194 of the Income Tax Act, 1967 , at the rates specified in Part I of the Table to this section, or

(b) in a case in which he is assessed to tax in accordance with the provisions of the said section 194, at the rates specified in Part II of the said Table,

and

(i) each of the first two rates in each part of that Table, and

(ii) the other rates in each Part of that Table shall be known, respectively, by the description specified in column (3), in each Part of the Table opposite the mention of the rate or rates, as the case may be, in column (2) of that Part.

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PART I

PART II

Amendment of section 3 (“Income Tax Acts”) of Income Tax Act, 1967.

9.— Section 3 of the Income Tax Act, 1967 , is hereby amended by the substitution for “In any enactment” of “In this Act and in any enactment” and the said section, as so amended, is set out in the Table to this section.

TABLE

3. In this Act and in any enactment passed after this Act “the Income Tax Acts” shall mean this Act and every other enactment relating to income tax.

Amendment of section 115 (exemptions and reliefs in respect of tax on certain payments on retirement or removal from office or employment) of Income Tax Act, 1967.

10.—(1) Section 115 of the Income Tax Act, 1967 , is hereby amended—

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

“(2) Tax shall not be charged by virtue of section 114 in respect of a payment in respect of an office or employment in which the holder's service included foreign service where the foreign service comprised—

(a) in any case, three-quarters of the whole period of service down to the relevant date, or

(b) where the period of service down to the relevant date exceeded ten years, the whole of the last ten years, or

(c) where the period of service down to the relevant date exceeded twenty years, one-half of that period, including any ten of the last twenty years.”,

(b) by the substitution in subsection (3) of “£6,000” for “£3,000” in both places where it occurs,

(c) by the deletion in subsection (7) of “, ‘payment of compensation for loss of office’”,

and the said subsections (3) and (7), as so amended, are set out in the Table to this section.

(2) The Schedule set out in Part II of the First Schedule shall be substituted for Schedule 3 to the Income Tax Act, 1967 .

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(3) Tax shall not be charged by virtue of section 114 in respect of a payment of an amount not exceeding £6,000, and in the case of a payment which exceeds that amount shall be charged only in respect of the excess:

Provided that where two or more payments in respect of which tax is chargeable by virtue of that section, or would be so chargeable apart from the foregoing provisions of this subsection, are made to or in respect of the same person in respect of the same office or employment, or in respect of different offices or employments held under the same employer or under associated employers, this subsection shall apply as if those payments were a single payment of an amount equal to that aggregate amount; and the amount of any one payment chargeable to tax shall be ascertained as follows, that is to say—

(a) where the payments are treated as income of different years of assessment, the said sum of £6,000 shall be deducted from a payment treated as income of an earlier year before any payment treated as income of a later year; and

(b) subject as aforesaid, the said sum shall be deducted rateably from the payments according to their respective amounts.

(7) In this section “the relevant date” and “foreign service” have the same meaning as in Schedule 3, and references to an employer or to a person controlling or controlled by an employer include references to his successors.

Amendment of section 336 (trade unions) of Income Tax Act, 1967.

11.— Section 336 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1980-81 and subsequent years of assessment, by the substitution of “£2,000” for “£600” and of “£750” for “£450” (inserted by the Finance Act, 1973 ), and the said section (apart from the second paragraph), as so amended, is set out in the Table to this section.

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336. A registered trade union which is precluded, by statute or by its rules, from assuring to any person a sum exceeding £2,000 by way of gross sum, or £750 a year by way of annuity, shall be entitled to exemption from tax under Schedules C, D and F in respect of its interest and dividends which are applicable and applied solely for the purpose of provident benefits.

Amendment of section 340 (military and other pensions, gratuities and allowances) of Income Tax Act, 1967.

12.— Section 340 (2) of the Income Tax Act, 1967 , is hereby amended by the insertion after paragraph (f) of the following paragraph:

“(ff) a pension or allowance payable under any of the following Acts:

Military Service Pensions Act, 1924

Military Service Pensions Act, 1934

Connaught Rangers (Pensions) Act, 1936

Army Pensions Act, 1971 , as extended by section 11 of the Army Pensions Act, 1973 .”.

Amendment of section 344 (exemption of interest on certain deposits) of Income Tax Act, 1967.

13.—As respects the year 1980-81 and subsequent years of assessment, section 344 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsections (1) and (2) of the following subsections:

“(1) Where the total income of an individual for the year of assessment includes, or would but for this section include, any sums (in this section referred to as ‘the said sums’) paid or credited in respect of interest on—

(a) deposits with a trustee savings bank or with the Post Office Savings Bank, or

(b) deposits with any of the commercial banks,

the said sums shall be disregarded for all the purposes of the Income Tax Acts if or in so far as the said sums do not exceed—

(i) in the case of sums representing interest on deposits mentioned in paragraph (a), £150, or

(ii) in the case of sums representing interest on deposits mentioned in paragraph (b), £70:

Provided that the total sums to be so disregarded shall not exceed £150:

Provided also that the provisions of this Act as regards the making by the individual of a return of his total income shall apply as if this section had not been enacted.

(2) For the purposes of subsection (1) the question whether or how far the said sums exceed £150 or £70, as the case may be, shall, where by virtue of section 194, a woman's income is deemed to be her husband's, be determined separately as regards the part of his income which is his by virtue of that section and the part which is his apart from that section.”.

Amendment of section 477 (time for payment of tax) of Income Tax Act, 1967, and section 20 (interest on income tax and sur-tax in cases of fraud or neglect) of Finance Act, 1971.

14.—(1) Section 477 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1980-81 and subsequent years of assessment, by the substitution, for subsections (1), (2), (2A) and (2B), of the following subsections:

“(1) Subject to the provisions of this section, tax contained in an assessment for any year of assessment shall be payable on or before the 1st day of October in that year, except that tax included in an assessment for any year of assessment which is made on or after the 1st day of October in that year shall be deemed to be due and payable on the day next after the day on which the assessment is made.

(2) (a) This subsection applies, as respects assessments for the year 1980-81, to tax appropriate to the profits or gains from farming within the meaning of Chapter II of the Finance Act, 1974 , contained in any such assessment made on an individual other than an individual to whom section 16 of the said Act applies.

(b) Tax to which this subsection applies shall, instead of being payable on or before the 1st day of October, 1980, or on such other date as is specified in subsection (1), be payable in two equal instalments, the first instalment on or before the 1st day of October, 1980, or on such other date as aforesaid and the second instalment on or before the 1st day of January, 1981, and the provisions of this Act as to the recovery of tax shall apply to each instalment of the tax in the same manner as they apply to the whole amount of the tax:

Provided that where the assessment is not made until after the said 1st day of January, 1981, this subsection shall not have effect and the tax shall be due and payable as provided in subsection (1).”.

(2) Section 20 (2) of the Finance Act, 1971 , shall have effect in relation to any assessment to tax for the year 1980-81 or any subsequent year of assessment as if “October” were substituted for “January”.

Amendment of section 7 (relief for certain expenditure on residential premises) of Finance Act, 1979.

15.—Section 7 of, and the Second Schedule to, the Finance Act, 1979 , shall have effect, for the purpose of ascertaining the amount of income on which a person is to be charged to income tax for the year 1980-81, as if—

(a) “1980-81” were substituted for “1979-80” in subsection (1) and the following proviso were added to the said subsection,

“Provided also that in a case where the claimant is a husband who is assessed to tax in accordance with the provisions of section 194 of the Income Tax Act, 1967 , this subsection shall have effect as if ‘£900’ were substituted for ‘£450’ ”, and

(b) (i) “the period commencing on the 6th day of April, 1980, and ending on the 5th day of April, 1981” were substituted for “the period commencing on the 6th day of April, 1979, and ending on the 5th day of April, 1980” in the definition of “qualifying period” in paragraph 1 of that Schedule, and

(ii) “1980-81” were substituted for “1979-80” in paragraph 4 (1) of that Schedule.

Cesser of section 11 (treatment for tax purposes of certain benefits payable under Social Welfare Acts, 1952 to 1979, and under Insurance (Intermittent Unemployment) Acts, 1942 to 1978) of Finance Act, 1979.

16.— Section 11 of the Finance Act, 1979 , shall not apply or have effect in relation to the year 1980-81 or any subsequent year of assessment.

Amendment of provisions relating to certain time limits.

17.—(1) Section 296 of the Income Tax Act, 1967 , shall, as respects the year 1980-81 and subsequent years of assessment, have effect as if, in the proviso to subsection (1), “two years after the end of the year of assessment” were substituted for “one year after the end of the year of assessment”.

(2) The provision specified in Part I of the Table to this section shall, as respects the year 1980-81 and subsequent years of assessment, have effect as if “twenty-four” were substituted for “twelve” in each place where it occurs.

(3) The provisions specified in Part II of the Table to this section shall, as respects a chargeable period ending on or after the 6th day of April, 1980, have effect as if “twenty-four” were substituted for “twelve” in each place where it occurs.

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PART I

(a) Subsections (3) and (4) of section 58 (basis of assessment, Cases I and II of Schedule D) of the Income Tax Act, 1967 .

(b) Subsection (7) (b) of section 72 (capital allowances and balancing charges in partnership cases) of the Income Tax Act, 1967 .

(c) Paragraph (ii) of the proviso to subsection (1) of section 77 (basis of assessment, Case III of Schedule D) of the Income Tax Act, 1967 .

PART II

(a) Subsection (5) of section 241 (wear and tear of machinery, plant, etc.,) of the Income Tax Act, 1967 .

(b) Subparagraphs (i) and (ii) of subsection (3) (d) of section 244 (allowance for scientific research) of the Income Tax Act, 1967 .

(c) Subsection (4) of section 245 (allowance for mining development) of the Income Tax Act, 1967 .

Chapter II

Taxation of Married Persons

Amendments of Part IX of Income Tax Act, 1967.

18.—As respects assessments to income tax for the year 1980-81 and any subsequent year of assessment, Part IX of the Income Tax Act, 1967 , is hereby amended by the substitution of the following chapter for Chapter I:

“Chapter I

Special Provisions as to Married Persons

Interpretation (Chapter I).

192.—(1) A wife shall be treated for income tax purposes as living with her husband unless either—

(a) they are separated under an order of a court of competent jurisdiction or by deed of separation, or

(b) they are in fact separated in such circumstances that the separation is likely to be permanent.

(2) (a) In this Chapter references to the income of a wife include references to any sum which, apart from this Chapter, would fall to be included in computing her total income, and the provisions of this Chapter shall have effect in relation to any such sum notwithstanding that some enactment (including, except so far as the contrary is expressly provided, an enactment passed after the passing of this Act) requires that that sum should not be treated as income of any person other than her.

(b) In the Income Tax Acts a reference to a person who has duly elected to be assessed to tax in accordance with the provisions of a particular section includes a reference to a person who is deemed to have elected to be assessed to tax in accordance with the provisions of that section and any reference to a husband who is assessed to tax in accordance with the provisions of section 194 for a year of assessment includes a reference to a case where he and his wife are assessed to tax, for that year, in accordance with the provisions of section 197.

(3) In this Chapter ‘the inspector’ means, in relation to a notice, any inspector who might reasonably be considered by the person giving notice to be likely to be concerned with the subject-matter thereof or who declares himself ready to accept the notice.

(4) Any notice required to be served under any section in this Chapter may be served by post.

Assessment as single persons.

193.—In any case in which a wife is treated as living with her husband, income tax shall be assessed, charged and recovered, save as otherwise provided by the Income Tax Acts, on the income of the husband and on the income of the wife as if they were not married:

Provided that, where an election under section 195 has effect in relation to a husband and wife for a year of assessment, this section shall not have effect in relation to that husband and wife for that year of assessment.

Assessment on husband in respect of income of both spouses.

194.—(1) Where, in the case of a husband and wife, an election under section 195 to be assessed to tax in accordance with the provisions of this section, has effect for a year of assessment—

(a) the husband shall be assessed and charged to tax, not only in respect of his total income (if any) for that year, but also in respect of his wife's total income (if any) for any part of that year of assessment during which she is living with him, and, for this purpose and for all the purposes of the Income Tax Acts, that last mentioned income shall be deemed to be income of his;

(b) the question whether there is any income of the wife chargeable to tax for any year of assessment and, if so, what is to be taken to be the amount thereof for tax purposes shall not be affected by the provisions of this section; and

(c) any tax falling to be assessed in respect of any income which, under this section, is deemed to be income of a woman's husband shall, instead of being assessed on her, or on her trustees, guardian or committee, or on her executors or administrators, be assessable on him or, in the appropriate cases, on his executors or administrators.

(2) Any relief from income tax which is authorised, by any provision of the Income Tax Acts, to be granted to a husband by reference to the income or profits or gains or losses of his wife or by reference to any payment made by her shall be granted to a husband for a year of assessment only if he is assessed to tax for that year in accordance with the provisions of this section.

Election for assessment under section 194.

195.—(1) A husband and his wife, where the wife is living with the husband, may, at any time during a year of assessment, by notice in writing given to the inspector, jointly elect to be assessed to tax for that year of assessment in accordance with the provisions of section 194, and where such election is made, the income of the husband and the income of the wife shall be assessed to tax for that year in accordance with those provisions.

(2) Where an election is made under subsection (1) in respect of a year of assessment, the election shall have effect for that year and for each subsequent year of assessment.

(3) Notwithstanding subsections (1) and (2), either the husband or the wife may, in relation to a year of assessment, by notice in writing given to the inspector before the end of the year, withdraw the election in respect of that year and, thereupon, the election shall not have effect for that year or for any subsequent year of assessment.

(4) (a) A husband and his wife, where the wife is living with the husband and where an election under subsection (1) has not been made by them for a year of assessment (or for any prior year of assessment) shall be deemed to have duly elected to be assessed to tax in accordance with the provisions of section 194 for that year unless, before the end of that year, either of them gives notice in writing to the inspector that he or she wishes to be assessed to tax for that year as a single person in accordance with the provisions of section 193.

(b) Where a husband or his wife has duly given notice under paragraph (a), that paragraph shall not have effect in relation to that husband and wife for the year of assessment for which the notice was given or for any subsequent year of assessment until the year of assessment in which the notice is withdrawn, by the person who gave it, by further notice in writing to the inspector.

Special provisions relating to tax on wife's income.

196.—(1) Where—

(a) an assessment to income tax (in this section referred to as ‘the original assessment’) has been made for any year of assessment on a man, or on a man's trustee, guardian or committee, or on a man's executors or administrators,

(b) the Revenue Commissioners are of opinion that, if an application for separate assessment under section 197 had been in force with respect to that year of assessment, an assessment in respect of, or of part of, the same income would have fallen to be made on, or on the trustee, guardian or committee of, or on the executors or administrators of, a woman who is the said man's wife or was his wife in that year of assessment, and

(c) the whole or part of the amount payable under the original assessment has remained unpaid at the expiration of twenty-eight days from the time when it became due,

the Revenue Commissioners may give to her, or, if she is dead, to her executors or administrators, or, if such an assessment as is referred to in paragraph (b) could, in the circumstances therein referred to, have been made on her trustee, guardian or committee, to her or to her trustee, guardian or committee, a notice—

(i) stating particulars of the original assessment and of the amount remaining unpaid thereunder, and

(ii) stating particulars, to the best of their judgment, of the assessment which would have fallen to be made as aforesaid,

and requiring the person to whom the notice is given to pay the amount which would have been payable under the last-mentioned assessment if it conformed with those particulars, or the amount remaining unpaid under the original assessment, whichever is the less.

(2) The same consequences as respects—

(a) the imposition of a liability to pay, and the recovery of, the tax with or without interest,

(b) priority for the tax in bankruptcy or in the administration of the estate of a deceased person,

(c) appeals to the Appeal Commissioners, the re-hearing of such appeals and the stating of cases for the opinion of the High Court, and

(d) the ultimate incidence of the liability imposed,

shall follow on the giving of a notice under subsection (1) to a woman, or to her trustee, guardian or committee, or to her executors or administrators, as would have followed on the making on her, or on her trustee, guardian or committee, or on her executors or administrators, as the case may be, of such an assessment as is referred to in subsection (1) (b), being an assessment which—

(i) was made on the day of the giving of the notice,

(ii) charged the same amount of tax as is required to be paid by the notice,

(iii) fell to be made and was made by the authority who made the original assessment, and

(iv) was made by that authority to the best of his or their judgment,

and the provisions of this Act relating to the matters specified in paragraphs (a) to (d) shall, with the necessary adaptations, have effect accordingly.

(3) Where a notice is given under subsection (1), tax up to the amount required to be paid by the notice shall cease to be recoverable under the original assessment and, where the tax charged by the original assessment carried interest under section 550, such adjustment shall be made of the amount payable under that section in relation to that assessment and such repayment shall be made of any amounts previously paid under that section in relation thereto, as are necessary to secure that the total sum, if any, paid or payable under that section in relation to that assessment is the same as it would have been if the amount which ceases to be recoverable had never been charged.

(4) Where the amount payable under a notice under subsection (1) is reduced as the result of an appeal or of a case stated for the opinion of the High Court—

(a) the Revenue Commissioners shall, if, having regard to that result, they are satisfied that the original assessment was excessive, cause such relief to be given by way of repayment or otherwise as appears to them to be just; but

(b) subject to any relief so given, a sum equal to the reduction in the amount payable under the notice shall again become recoverable under the original assessment.

(5) The Revenue Commissioners and the inspector or other proper officer shall have the like powers of obtaining information with a view to the giving of, and otherwise in connection with, a notice under subsection (1) as they would have had with a view to the making of, and otherwise in connection with, such an assessment as is referred to in subsection (1) (b) if the necessary conditions had been fulfilled for the making of such an assessment.

(6) Where a woman dies who, at any time before her death, was a wife living with her husband, he or, if he is dead, his executors or administrators may, not later than two months from the date of the grant of probate or letters of administration in respect of her estate or, with the consent of her executors or administrators, at any later date, give to her executors or administrators and to the inspector a notice in writing declaring that, to the extent permitted by this section, he or they disclaims or disclaim responsibility for unpaid income tax in respect of all income of hers for any year of assessment or part of a year of assessment, being a year of assessment or part of a year of assessment for which any income of hers was deemed to be his income and in respect of which he was assessed to tax under section 194.

(7) A notice given pursuant to subsection (6) to the inspector shall be deemed not to be a valid notice unless it specifies the names and addresses of the woman's executors or administrators.

(8) Where a notice under subsection (6) has been given to a woman's executors or administrators and to the inspector—

(a) it shall be the duty of the Revenue Commissioners and the Appeal Commissioners to exercise such powers as they may then or thereafter be entitled to exercise under subsections (1) to (5) in connection with any assessment made on or before the date when the giving of the said notice is completed, being an assessment in respect of any of the income to which the said notice relates, and

(b) the assessments (if any), to tax, which may be made after that date shall, in all respects and in particular as respects the persons assessable and the tax payable, be the assessments which would have fallen to be made if—

(i) an application for separate assessment under section 197 had been in force in respect of the year of assessment in question, and

(ii) all assessments previously made had been made accordingly.

Application for separate assessments.

197.—(1) Where an election by a husband and wife to be assessed to tax in accordance with the provisions of section 194 has effect in relation to a year of assessment, and, in relation to that year of assessment, an application is made for the purpose under this section, in such manner and form as may be prescribed by the Revenue Commissioners, either by the husband or by the wife, income tax for that year shall be assessed, charged and recovered on the income of the husband and on the income of the wife as if they were not married and all the provisions of this Act with respect to the assessment, charge and recovery of tax shall, save as otherwise provided by this Act, apply as if they were not married except that—

(a) the total deductions from total income allowed to the husband and wife by way of personal reliefs shall be the same as if the application had not had effect with respect to that year,

(b) the total tax payable by the husband and wife for that year shall be the same as the total tax which would have been payable by them if the application had not had effect with respect to that year, and

(c) the provisions set out in section 198 shall have effect.

(2) An application under this section in respect of a year of assessment may be made—

(a) in the case of persons marrying during the course of that year, before the 6th day of July in the following year, and

(b) in any other case, within 6 months before the 6th day of July in that year.

(3) Where an application is made under subsection (1), that subsection shall have effect not only for the year of assessment for which the application was made, but also for each subsequent year of assessment:

Provided that, in relation to a subsequent year of assessment, the person who made the application may, by notice in writing given to the inspector before the 6th day of July in that year, withdraw that election, and, thereupon, subsection (1) shall not have effect for the year of assessment in relation to which the notice was given or any subsequent year of assessment.

(4) A return of the total incomes of the husband and of the wife may be made for the purposes of this section either by the husband or by the wife but, if the Revenue Commissioners are not satisfied with any such return, they may require a return to be made by the wife or by the husband, as the case may be.

(5) The Revenue Commissioners may by notice require returns for the purposes of this section to be made at any time.

(6) In this section and in section 198 ‘personal reliefs’ means relief under any of the following:

(a) sections 138 to 145 and 151 and 152,

(b) section 12 of the Finance Act, 1967 ,

(c) section 3 of the Finance Act, 1969 ,

(d) section 11 of the Finance Act, 1971 ,

(e) section 8 of the Finance Act, 1974 , and

(f) section 7 of the Finance Act, 1979 .

Method of apportioning reliefs and charging tax in cases of separate assessments.

198.—(1) Where, pursuant to an application under section 197, a husband and wife are assessed to tax for a year of assessment in accordance with the provisions of that section—

(a) subject to subsection (2), the benefit flowing from the personal reliefs may be given either by way of reduction of the amount of the tax to be paid, or by repayment of any excess of tax which has been paid, or by both of those means, as the case requires, and shall be allocated to the husband and the wife—

(i) so far as it flows from relief under sections 138 and 141 (other than subsection (2)), section 11 of the Finance Act, 1971 , and section 8 of the Finance Act, 1974 , in the proportions of one-half and one-half,

(ii) so far as it flows from relief under section 138B, to the husband or to the wife according as the emoluments from which the deduction under that section is made are emoluments of the husband or of the wife,

(iii) so far as it flows from relief in respect of a child under section 141 (2) or relief in respect of a dependent relative under section 142, to the husband or to the wife according as he or she maintains the child or relative,

(iv) so far as it flows from relief under sections 143, 145, 151 and 152, to the husband or to the wife according as he or she made the payment giving rise to the relief,

(v) so far as it flows from relief under section 12 of the Finance Act, 1967 , in the proportions in which they bore the expenditure giving rise to relief,

(vi) so far as it flows from relief under section 3 of the Finance Act, 1969 , in the proportions in which they bear the cost of employing the person in respect of whom the relief is given,

(vii) so far as it flows from relief under section 7 of the Finance Act, 1979 , in the proportions in which they incurred the expenditure giving rise to the relief,

(b) subject to subsection (3), section 8 of the Finance Act, 1980, shall apply for that year, in relation to each of the spouses concerned, as if the part of taxable income specified in Part II of the Table to that section which is to be charged to tax at any of the rates specified therein (other than the rate expressed to be chargeable on the remainder of taxable income) were one-half of the part so specified.

(2) Where the amount of relief allocated to the husband under subsection (1) (a) exceeds the income tax chargeable on the income of the husband for the year of assessment, the balance shall be applied to reduce the income tax chargeable on the income of the wife for that year, and where the amount of relief allocated to the wife under that paragraph exceeds the income tax chargeable on her income for the year of assessment, the balance shall be applied to reduce the income tax chargeable on the income of the husband for that year.

(3) Where the part of taxable income of a spouse chargeable to tax in accordance with subsection (1) (b) at a particular rate specified in Part II of the Table to section 8 of the Finance Act, 1980, is less than that of the other spouse and is less than the part of taxable income specified in column (1) of that Part (hereinafter referred to as ‘the appropriate part’) in respect of which the first-mentioned spouse is so chargeable to tax at that rate, the part of taxable income of the other spouse which, by virtue of that subsection, is to be charged to tax at that rate shall be increased by the amount by which the taxable income of the first-mentioned spouse chargeable to tax at that rate is less than the appropriate part.”.

Consequential amendments.

19.—Part III of the First Schedule shall have effect, as respects the year 1980-81 and subsequent years of assessment, for the purpose of supplementing this Chapter.

Prohibition on certain repayments of tax for 1979-80 and earlier years.

20.—(1) In this section “relevant year” means the year 1979-80 or any earlier year of assessment.

(2) Notwithstanding anything contained in the Income Tax Acts, the regulations made thereunder or any assessment made (whether before or after the passing of this Act) in accordance with the said Acts or said regulations, no repayment of tax shall be made nor shall any credit be allowed to any person in respect of any overpayment of tax (whether paid by deduction or otherwise) suffered by him in respect of any relevant year, being an overpayment arising by virtue of the aggregation of the income of that person with the income of his spouse, unless, before the commencement of that relevant year, he had instituted legal proceedings to assert the unconstitutionality of the provisions of the Income Tax Acts purporting to authorise such aggregation.

Assessments for 1979-80 and earlier years made after passing of Act.

21.—(1) In this section—

“assessment” includes an additional assessment;

“an assessment to which this section applies” means an assessment to tax made, on or after the passing of this Act, on an individual for a relevant year;

“relevant year” means the year 1979-80 or any earlier year of assessment;

“the relevant rate” means, as respects any of the years 1974-75 to 1979-80, the highest of the higher rates which applied for that year of assessment and, as respects any other relevant year, the rate equal to the aggregate of the standard rate of income tax for that year and the highest rate at which sur-tax was chargeable for that year;

“the relevant tax”, in relation to an individual, means the amount of tax for a relevant year which—

(a) would have been payable by the individual for that year, or

(b) in a case where the individual is a wife who was treated as living with her husband for that year, would have been payable for that year by the husband of the individual,

if an assessment in respect of the total income of the individual and of his spouse for that year had been made on the 6th day of October in that year on the individual or on the husband of the individual, as the case may be, being an assessment made on the basis and in accordance with the practice prevailing at that time;

“tax” means income tax or sur-tax or income tax and sur-tax as the context requires.

(2) Where, for a relevant year, an assessment to which this section applies is to be made on an individual (being a husband whose wife was treated as living with him for the relevant year or being a wife who was treated as living with her husband for that year) and, in consequence thereof, the aggregate of the tax, which would be payable for that relevant year by the individual and the spouse of the individual, is less than the amount of the relevant tax in relation to the individual for that relevant year, the provisions of subsection (3) shall apply in relation to the said assessment.

(3) Where the provisions of this subsection apply in relation to an assessment for a relevant year, then, notwithstanding anything in the Income Tax Acts but subject to the provisions of subsection (4)—

(a) the amount of income on which the individual is to be charged to tax shall be ascertained on the basis that section 138 of the Income Tax Act, 1967 , had not been in force and had no effect for that year,

(b) the assessment shall be made on the basis that the individual is to be charged to tax on his taxable income for the year at the relevant rate, and

(c) where the individual on whom the assessment is to be made is a married person, the assessment shall be made on the basis that he is not married and such assessments or adjustments of assessments shall be made as are necessary to secure that the individual and his spouse shall be charged to tax for the relevant year in all respects as if they were not married:

Provided that any income contained in an assessment made on a husband which, before the 12th day of October, 1979, in accordance with the practice prevailing at the time the assessment was made, was deemed to be his income shall not be regarded as income of any other person.

(4) Where the provisions of subsection (3) apply in relation to any assessment on an individual for a relevant year, such relief, if any, from tax shall be given as is necessary to secure that the aggregate amount of tax payable by the individual and his spouse for that year shall not exceed the relevant tax for that year, and, in a case where assessments to which this section applies are made on the husband and on his spouse, the relief to be given under this subsection shall be apportioned between them in such manner as is just and reasonable.

Chapter III

Taxation of Farming Profits

Extension of tax charge on farming profits.

22.—As respects the year 1980-81 and subsequent years of assessment—

(a) section 15 (farming profits to be charged under Schedule D) of the Finance Act, 1974 , is hereby amended by the substitution in subsection (3) of “£40” for “£50”, and

(b) section 19 (limit on amount of tax to be charged in certain cases) of the said Act (inserted by the Finance Act, 1978 ) is hereby amended—

(i) by the substitution in the definition of V in subsection (1) of “£39” for “£49”, and

(ii) by the substitution in subsection (2) of “£49” for “£59”,

and the said subsection (3) (apart from the proviso), the said definition and the said subsection (2), as so amended, are set out in the Table to this section.

TABLE

(3) Subsection (1) shall not apply, as respects any year of assessment, in the case of an individual who shows that the rateable valuation of all farm land occupied by him did not, at any time during that year of assessment, amount to £40 or more.

V is 1 or, if greater, the number equivalent to the amount by which the rateable valuation of the farm land occupied by him for that year exceeds £39.

(2) This section shall not apply in any case where the rateable valuation of the farm land occupied by the individual at any time during the year of assessment exceeds £49.

Application for 1980-81 of section 20A (optional basis of assessment) of Finance Act, 1974.

23.—Section 20A (inserted by the Finance Act, 1978 ) of the Finance Act, 1974 , shall have effect for the year 1980-81 as if —

(a) “1980-81” were substituted for “1978-79” in each place where it occurs,

(b) “ section 22 of the Finance Act, 1980 ” were substituted for “ section 13 of the Finance Act, 1978 ” in paragraph (a) (ii), and

(c) “1980” were substituted for “1978” in paragraph (a) (II).

Cesser of sections 20 (basis of assessment) and 21 (notional basis of assessment) of Finance Act, 1974.

24.— Sections 20 and 21 (inserted by the Finance Act, 1978 ) of the Finance Act, 1974 , shall not apply or have effect in relation to the year 1980-81 or any subsequent year of assessment.

Application of section 28 (farming profits: restriction of personal allowances) of Finance Act, 1974.

25.—(1) In any case where section 28 of the Finance Act, 1974 , applies for any year of assessment in relation to an individual—

(a) if the other income, within the meaning of that section, of the individual is income of his spouse, the individual and his spouse shall be assessed to tax for that year in accordance with the provisions of section 193 of the Income Tax Act, 1967 , and the proviso to the said section 193 shall not have effect,

(b) if the individual makes a claim for the year of assessment under section 1 or 2 of the Finance Act, 1980, “the specified amount” in each of those sections shall, in relation to the individual for that year of assessment, be construed as meaning the amount so specified as reduced by the amount by which it would be reduced by virtue of the said section 28 if the specified amount was the aggregate amount of the deductions to be made from the total income of the individual concerned in respect of personal reliefs claimed by him for that year of assessment.

(2) In this section “personal reliefs” has the same meaning as in section 197 of the Income Tax Act, 1967 .

Farming: provision relating to capital allowances.

26.—(1) In this section—

“farming” has the same meaning as in Chapter II of Part I of the Finance Act, 1974 :

“specified machinery or plant” means machinery or plant in use or intended for use for the purposes of a trade of farming but not including fixed machinery and fixed plant designed to be used exclusively in a farm building and which is in use or is intended to be used in such a building;

“specified provisions” means section 251 of the Income Tax Act, 1967 , section 11 of the Finance Act, 1967 and section 26 of the Finance Act, 1971 .

(2) In determining what capital allowances fall to be made to a person for any chargeable period commencing on or after the 6th day of April, 1980, in taxing a trade of farming—

(a) in a case where the aggregate of the capital allowances which would fall to be so made to the person for the chargeable period if the specified provisions did not apply or have effect for that chargeable period in relation to specified machinery or plant, or the expenditure on the provision thereof, amounts to or exceeds 30 per cent. of the amount of the profits or gains from farming on which the person is chargeable to tax for that chargeable period, the said specified provisions shall not apply or have effect in the case of that person for that chargeable period in relation to specified machinery or plant, and

(b) in any other case the amount or the aggregate amount of—

(i) any capital allowance or allowances given under any of the specified provisions, and

(ii) any amount or amounts by which any capital allowance or allowances may be increased under any of the specified provisions, shall be limited to the maximum amount which will secure that the aggregate of the capital allowances falling to be made to the person for the chargeable period in taxing the trade of farming shall not exceed 30 per cent. of the profits or gains from farming on which the person is chargeable to tax for the chargeable period.

Farming: allowances for capital expenditure on construction of buildings and other works.

27.—As respects expenditure incurred on or after the 6th day of April, 1980, section 22 (inserted by the Corporation Tax Act, 1976 ) of the Finance Act, 1974 , is hereby amended by the substitution for subsection (2) of the following subsection:

“(2) Where a person to whom this section applies incurs, for the purpose of a trade of farming land occupied by him, any capital expenditure on the construction of farmhouses, farm buildings, cottages, fences or other works, there shall be made to him during a writing-down period of ten years beginning with the chargeable period related to that expenditure, writing-down allowances (in this section referred to as ‘farm buildings allowances’) in respect of that expenditure and such allowances shall be made in taxing the trade:

Provided that—

(a) the farm buildings allowance to be granted for any chargeable period shall, subject to paragraph (b), be increased by such amount as is specified by the person to whom the allowance is to be made in making his claim for the allowance and, in relation to a case in which this proviso has had effect, any reference in the Tax Acts to a farm buildings allowance made under this section shall be construed as a reference to that allowance as increased under this proviso, and

(b) the maximum farm buildings allowance to be made under this section for any chargeable period shall not exceed three-tenths of the capital expenditure to which the said farm buildings allowance relates.”.

Farming: provision relating to relief in respect of increase in stock values.

28.—(1) Where, in computing profits from the trade of farming, a deduction allowed by virtue of section 12 of the Finance Act, 1976 , has effect for the year 1980-81—

(a) section 31 (4) (a) of the Finance Act, 1975 (as applied by section 12 (2) (a) of the Finance Act, 1976 ) shall apply and have effect as if the reference to 20 per cent. were a reference to 10 per cent., and

(b) the said section 12 shall have effect as if subsection (2) (c) (inserted by the Finance Act, 1979 ) had not been enacted.

(2) Where a deduction falls to be made under section 31A (2) (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , in relation to the trade of farming, the said section 31A shall have effect as respects any accounting period which ends on or after the 6th day of April, 1979, as if—

(i) in subsection (4) (a) the reference to 20 per cent. were a reference to 10 per cent., and

(ii) paragraph (iii) (inserted by the Finance Act, 1979 ) of the proviso to the said subsection (4) (a) had not been enacted.

(3) (a) In this subsection—

“accounting period” has the same meaning as in section 12 of the Finance Act, 1976 ;

“farming” has the same meaning as in Chapter II of Part I of the Finance Act, 1974 ;

“person” has the same meaning as in section 12 of the Finance Act, 1976 ;

“stock to which this subsection applies” means livestock forming part of the trading stock of a trade of farming which is compulsorily disposed of under any statute relating to the eradication or control of diseases in livestock;

“trading stock” has the same meaning as in section 31 of the Finance Act, 1975 .

(b) Where—

(i) any stock to which this subsection applies is disposed of in an accounting period by a person carrying on a trade of farming, and

(ii) apart from the provisions of this subsection, the value of the trading stock of the said trade of farming at the beginning of the accounting period exceeds the value of the trading stock at the end of the accounting period, the person may elect, by notice in writing given to the inspector not later than one year after the end of the accounting period, that for the purpose of section 31 of and the third Schedule to the Finance Act, 1975 , and section 12 of the Finance Act, 1976 —

(I) the value of the trading stock of the trade of farming at the end of the accounting period, and

(II) the value of the said trading stock at the beginning of the immediately succeeding accounting period,

shall be computed as if the said stock to which this subsection applies had not been disposed of:

Provided that—

(A) this subsection shall not be construed as enabling the value of trading stock at the end of an accounting period or at the beginning of an immediately succeeding accounting period to exceed the value of the trading stock at the beginning of the first mentioned accounting period,

(B) nothing in this subsection shall affect the provisions of section 12 (8) (inserted by the Finance Act, 1977 ) of the Finance Act, 1976 , and

(C) this subsection shall not have effect in relation to any year of assessment prior to the year 1980-81.

Amendment of provisions relating to the occupation of farm land by individuals and the deeming of farm land to be so occupied.

29.—As respects the year 1980-81 and subsequent years of assessment, section 17 of the Finance Act, 1974 , is hereby amended—

(a) by the addition to subsection (1) of the following proviso:

“Provided that farm land shall not be deemed to be occupied by an individual by reason of the fact that it is farm land of which his wife is the beneficial owner, if the individual does not have the use of that farm land and his wife—

(i) has the use of that farm land, or

(ii) is chargeable to tax under Case V of Schedule D on payments received in respect of the occupation of that farm land and those payments are not less than the payments which, having regard to values prevailing at the time, are not less than the payments which could have been obtained in respect of that land on the basis that negotiations for the payments had been at arm's length.”

(b) by the addition thereto of the following subsection:

“(8) In determining for the purposes of section 15 (3) and of section 30 (1) of the Finance Act, 1980 whether the rateable valuation of all farm land occupied by an individual did not at any time during a year of assessment amount to or exceed a particular amount in a case where farm land is beneficially owned by an individual jointly with any other person or persons, the individual shall, in relation to the farm land so owned, be deemed, notwithstanding the preceding provisions of this section, to occupy farm land the rateable valuation of which is an amount equal to the total rateable valuation of the farm land so owned.”.

Chapter IV

Resource Tax

Charge of resource tax.

30.—(1) This section applies to any person (other than a body of persons, or a trust, established for charitable purposes only) who at any time during a year of assessment (being the year 1980-81 or any subsequent year of assessment) occupies, or is deemed to occupy, farm land the rateable valuation of which amounts to £70 or more.

(2) A tax, to be called resource tax, shall be charged upon any person to whom this section applies for any year of assessment, and shall be charged at the rate of £3.50 for every £1 of the rateable valuation of the farm land occupied by that person for that year.

Marginal relief.

31.—(1) Where, for any year of assessment, resource tax is chargeable upon farm land occupied by a person, the amount of resource tax so chargeable shall not exceed the amount determined by the formula—

where—

T is the amount of resource tax that would, but for the provisions of this section, be payable by the person for that year of assessment, and

V is 1 or, if greater, the number equivalent to the amount by which the rateable valuation of the farm land occupied by the person for the year of assessment exceeds £69.

(2) This section shall not apply in any case where the rateable valuation of the farm land occupied by a person at any time during the year of assessment exceeds £79.

Disallowance of resource tax for purposes of Tax Acts.

32.—Resource tax shall not be allowed in computing any income, profits or losses for any of the purposes of the Tax Acts.

Date of payment of resource tax.

33.—Resource tax contained in an assessment for any year of assessment shall be payable on or before the 1st day of October in that year except that resource tax included in an assessment for any year which is made on or after the 1st day of October shall be deemed to be due and payable on the day next after the day on which the assessment is made.

Assessment and collection of resource tax.

34.—(1) Assessments under this Chapter shall be made by inspectors of taxes appointed under section 161 of the Income Tax Act, 1967 , or by such other officers as the Revenue Commissioners shall appoint in that behalf.

(2) The Collector-General for the time being appointed under section 162 of the Income Tax Act, 1967 , shall collect and levy resource tax from time to time charged in all assessments made under the provisions of this Chapter.

Application of income tax provisions to resource tax and power to combine returns, etc.

35.—(1) All the provisions of the Income Tax Acts relating to the assessment, collection and recovery of income tax, to appeals against assessments and to cases to be stated for the opinion of the High Court shall, subject to any necessary modifications, apply in relation to resource tax as they apply in relation to income tax chargeable under Schedule D.

(2) Any return or assessment or other document relating to resource tax may be combined with any corresponding return, assessment or document relating to income or income tax or corporation tax.

Occupation of farm land for purposes of resource tax.

36.—For the purposes of this Part any question as to the rateable valuation of farm land occupied by a person at any particular time or as to the rateable valuation of farm land occupied by a person for a year of assessment shall be determined in the same manner and on the same basis as it would be determined in the case of an individual for the purposes of Chapter II of Part I of the Finance Act, 1974 , and in this Part “farm land” shall have the meaning assigned to it by that Chapter and “occupies” and “occupied” shall be construed in accordance with the meaning assigned to “occupation” by that Chapter:

Provided that, in determining the amount of the charge to tax in any case for any year of assessment under section 30 (2)—

(a) where—

(i) for the said year of assessment a person is chargeable to income tax or to corporation tax under Case V of Schedule D in respect of profits or gains from any rent or any receipts in respect of any easement in relation to any part of the farm land occupied by him, and

(ii) the said rent or the said receipts are, having regard to values prevailing at the time, not less than the amount which could have been obtained on the basis that the negotiations for the rent or the receipts had been at arm's length,

the said section 30 (2) shall not apply for that year of assessment to the rateable valuation of the part of the farm land from which the said profits or gains so chargeable under Case V of Schedule D arise,

(b) In relation to any farm land occupied, or deemed to be occupied, by a person in partnership with any other person or persons, there shall be taken into account for that year of assessment only that proportion of the rateable valuation of the farm land so occupied in partnership as bears to that rateable valuation the same proportion as his share of the partnership profits or losses, on an apportionment thereof made in accordance with the terms of the agreement as to the sharing of those profits or losses bears to the said profits or losses of the partnership.

Chapter V

Corporation Tax

Amendment of Chapter IV (manufacturing companies) of Part I of Finance Act, 1977.

37.—(1) Chapter IV of Part I of the Finance Act, 1977 , is hereby amended—

(a) in section 20—

(i) by the substitution of “1980” for “1979” in the definition of “relevant period”, and

(ii) by the substitution of “, 1979 or 1980” for “or 1979” in both places where it occurs in the definition of “1977 period”,

and the said definitions, as so amended, are set out in the Table to this paragraph.

TABLE

“relevant period” means an accounting period or part of an accounting period of a company falling within the period from the 1st day of January, 1977, to the 31st day of December, 1980;

“1977 period” means an accounting period or part of an accounting period of a company falling within the financial year 1977 and any corresponding expression in which a reference to 1978, 1979 or 1980 is followed by the word “period” means an accounting period or part of an accounting period of a company falling within the financial year 1978, 1979 or 1980, as the case may be;

(b) by the substitution of the following section for section 23 (inserted by the Finance Act, 1978 ):

“Corresponding part of standard year.

23.—Where a 1977 period, a 1978 period, a 1979 period or a 1980 period is less than twelve months, the corresponding part of the standard year in relation to a specified trade shall be the part which begins twelve months, twenty-four months, thirty-six months or forty-eight months, as the case may be, before the date on which that period begins and which ends twelve months, twenty-four months, thirty-six months or forty-eight months, as the case may be, before the date on which that period ends.”,

(c) in section 24 (inserted by the Finance Act, 1978 )—

(i) by the substitution of the following subsection for subsection (3):

“(3) The provisions of subsection (2), except paragraph (c) thereof, shall apply, subject to the provisions of subsections (4), (5), (6) and (7), in relation to a 1978 period, a 1979 period and a 1980 period as they apply in relation to a 1977 period.”,

(ii) by the insertion in subsection (4) after paragraph (b) of the following paragraph:

“(c) In relation to a 1980 period—

(i) each reference in subsection (2) to 1977 shall be construed as a reference to 1980, and

(ii) the reference in subsection (2) (d) to 103 per cent. shall be construed as a reference to 112 per cent.”, and

(iii) by the insertion after subsection (6) of the following subsection:

“(7) In relation to a 1980 period, a company may elect, in relation to the specified trade carried on by it—

(a) to have the financial year 1977 treated as the standard year in relation to that trade for the purposes of subsection (2) (d), or

(b) to have the financial year 1978 so treated, or

(c) to have the financial year 1979 so treated.

and

(i) where the election referred to in paragraph (a) is made, the provisions of subsection (4) (c) (ii) shall apply to the company as if the reference to 112 per cent. were a reference to 109 per cent.,

(ii) where the election referred to in paragraph (b) is made, the provisions of subsection (4) (c) (ii) shall apply to the company as if the reference to 112 per cent. were a reference to 106 per cent.,

(iii) where the election referred to in paragraph (c) is made, the provisions of subsection (4) (c) (ii) shall not apply to the company.”,

(d) in section 24A (inserted by the Finance Act, 1978 ), by the insertion after subsection (3) of the following subsection:

“(4) In relation to a 1980 period of a company to which this section applies—

(a) the provisions of section 24 (2), except paragraph (c) thereof, shall apply as they apply in relation to a 1977 period of a company to which section 24 applies with the modifications that—

(i) each reference in section 24 (2) to 1977 shall be construed as a reference to 1980, and

(ii) the reference in section 24 (2) (d) to 103 per cent. shall, if the standard year in relation to the specified trade carried on by the company is the financial year 1976, be construed as a reference to 112 per cent., if such standard year in relation to such trade is the financial year 1977, be construed as a reference to 109 per cent. and, if such standard year in relation to such trade is the financial year 1978, be construed as a reference to 106 per cent.,

(b) if, but for this paragraph, the standard year in relation to the specified trade carried on by the company would be the financial year 1976, the company may elect to have the financial year 1977, the financial year 1978 or the financial year 1979 treated as the standard year for the purposes of the said section 24 (2) (d) in relation to such trade,

(c) if, but for this paragraph, the standard year in relation to the specified trade carried on by the company would be the financial year 1977, the company may elect to have the financial year 1978 or the financial year 1979 treated as the standard year for the purposes of the said section 24 (2) (d) in relation to such trade, and

(d) if, but for this paragraph, the standard year in relation to the specified trade carried on by the company would be the financial year 1978, the company may elect to have the financial year 1979 treated as the standard year for the purposes of the said section 24 (2) (d) in relation to such trade.”,

(e) in section 24B (inserted by the Finance Act, 1978 ), by the insertion after subsection (2) of the following subsection:

“(3) In relation to a 1980 period of a company to which this section applies—

(a) the provisions of section 24 (2), except paragraph (c) thereof, shall apply as they apply in relation to a 1977 period of a company to which the provisions of section 24 apply with the modifications specified in section 24A (4) (a), and

(b) paragraphs (b), (c) and (d) of section 24A (4) shall apply for the purposes of this section as they apply for the purposes of that section.”,

(f) by the insertion after section 24B of the following section:

“Rate of corporation tax for certain manufacturing companies commencing to trade in 1979.

24C.—(1) This section applies to a company which—

(a) begins to carry on a trade in the financial year 1979, and

(b) is not a company to which the provisions of section 24, 24A or 24B apply.

(2) (a) The provisions of section 24 (2), except paragraph (c) thereof, shall apply in relation to a 1980 period of a company to which the provisions of this section apply, as they apply in relation to a 1977 period of a company to which the provisions of section 24 apply with the modifications specified in section 24A (4) (a).

(b) Paragraphs (b), (c) and (d) of section 24A (4) shall apply for the purposes of this section as they apply for the purposes of that section.”,

and

(g) in subsection (3) (inserted by the Finance Act, 1978 ) of section 29—

(i) by the substitution of “, the 1979 period or the 1980 period” for “or the 1979 period” in paragraphs (a) and (b), and

(ii) by the substitution of “1980-81” for “1979-80” in paragraph (b),

and the said subsection (3), as so amended, is set out in the Table to this paragraph.

TABLE

(3) Where for an accounting period corporation tax is charged at the rate of 25 per cent. on all or part of a company's income—

(a) the provisions of section 28 of the Corporation Tax Act, 1976 , shall not have effect for the 1977 period, the 1978 period, the 1979 period or the 1980 period which coincides with, or is included in, that accounting period, and

(b) sections 182 (3) and 184 (3) of the said Act shall have effect for the 1977 period, the 1978 period, the 1979 period or the 1980 period which coincides with, or is included in, that accounting period as if the standard rate for each of the years 1976-77 to 1980-81 were 25 per cent.

(2) The reference in section 30 of the Finance Act, 1977 , to section 24 of that Act—

(a) includes a reference to section 24C of that Act, and

(b) for the purposes of any claim made on or after the 6th day of May, 1980, under section 24A or 24B of that Act includes, and shall be deemed always to have included, references to the said sections 24A and 24B.

Chapter VI

Corporation Tax: Relief in Relation to Certain Income of Manufacturing Companies

Definitions.

38.—In this Chapter—

“merchandise” means goods other than goods within the meaning of section 39;

“relevant accounting period” means an accounting period or part of an accounting period of a company falling within the period from the 1st day of January, 1981, to the 31st day of December, 2000;

“relief under this Chapter” means the reduction of corporation tax provided for in section 41 (2).

Meaning of “goods”.

39.—(1) In this Chapter “goods” means goods manufactured within the State in the course of a trade by the company which, in relation to the relevant accounting period, is the company claiming relief under this Chapter in relation to the trade:

Provided that where—

(a) there are two companies one of which manufactures goods and the other of which sells them in the course of its trade, and

(b) one of the companies is a 90 per cent. subsidiary of the other or both companies are 90 per cent. subsidiaries of a third company,

any goods manufactured within the State by one of the companies shall, when sold in the course of its trade by the other company, be deemed to have been manufactured within the State by that other company.

(2) Where a company carries on a trade which consists of or includes the rendering to another person of services by way of subjecting commodities or materials belonging to that person to any process of manufacturing, the following provisions shall apply for the purpose of relief under this Chapter—

(a) the rendering within the State of such services shall be regarded as the manufacture within the State of goods,

(b) any amount receivable in payment for services so rendered shall be regarded as an amount receivable from the sale of goods, and

(c) the inspector may by notice in writing require a company claiming relief from tax by virtue of this subsection to furnish him with such information or particulars as may be necessary for the purpose of giving effect to this subsection, and section 41 (2) shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this subsection.

(3) (a) The definition of “goods” in subsection (1) shall not include goods sold to the intervention agency and, for the purposes of this exclusion, the sale of goods to a person other than the intervention agency shall be deemed to be a sale to the intervention agency if and to the extent that those goods are ultimately sold to the intervention agency.

(b) In paragraph (a) “the intervention agency” means the Minister for Agriculture when exercising or performing any power or function conferred on him by Regulation 3 of the European Communities (Common Agricultural Policy) (Market Intervention) Regulations, 1973 (S.I. No. 24 of 1973), and any other person when exercising or performing any corresponding power or function in any Member State of the European Economic Community.

(4) The definition of “goods” in subsection (1) shall not include goods sold by retail by the company claiming relief under this Chapter:

Provided that goods shall be deemed for the purposes of this exclusion not to be sold by retail if they are sold—

(a) to a person who carries on a trade of selling goods of the class to which the goods so sold to him belong, or

(b) to a person who uses goods of that class for the purposes of a trade carried on by him, or

(c) to a person, other than an individual, who uses goods of that class for the purposes of an undertaking carried on by him.

Apportionment.

40.—For the purposes of this Chapter, where a part only of an accounting period of a company is a relevant accounting period, all amounts referable to the accounting period shall be apportioned, on the basis of the proportion which the length of the relevant accounting period bears to the length of the accounting period of the company, for the purpose of ascertaining any amount required to be taken into account in respect of the relevant accounting period.

Basis of relief from corporation tax.

41.—(1) For the purposes of this section “relevant corporation tax” means the corporation tax which, apart from this section and sections 58 , 182 and 184 of the Corporation Tax Act, 1976 , would be chargeable for the relevant accounting period exclusive of the corporation tax chargeable on the part of the company's profits attributable to chargeable gains for that period; and that part shall be taken to be the amount brought into the company's profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description.

(2) Where a company which carries on a trade which consists of or includes the manufacture of goods claims and proves as respects a relevant accounting period that, during that period, any amount was receivable in respect of the sale, in the course of the trade, of goods, corporation tax payable by the company for that period, so far as it is referable to the income from the sale of those goods, shall be reduced by seven-ninths; and the corporation tax referable to the income from the sale of those goods shall be such an amount as bears to the relevant corporation tax the same proportion as the income from the sale of those goods bears to the total income brought into charge to corporation tax for the relevant accounting period.

(3) For the purposes of subsection (2) “the income from the sale of those goods” shall be taken to be such sum as bears to the amount of the company's income for the relevant accounting period from the sale in the course of the trade mentioned in that subsection of goods and merchandise the same proportion as the amount receivable by the company in the relevant accounting period from the sale in the course of the trade of goods bears to the total amount receivable by the company in the relevant accounting period from the sale in the course of the trade of goods and merchandise.

(4) For the purposes of subsection (3) “the company's income for the relevant accounting period from the sale in the course of the trade mentioned in that subsection of goods and merchandise” shall, in case the income from the trade is derived solely from sales of goods and merchandise, be the amount of the company's income from the trade or, in any other case, be such amount of the income from the trade as appears to the inspector or, on appeal, to the Appeal Commissioners, to be just and reasonable.

(5) (a) For the purposes of this Chapter the amount receivable by a company in a relevant accounting period from the sale of goods or merchandise—

(i) shall be deemed to be reduced by the amount of any duty paid or payable by the company in respect of the goods or merchandise or in respect of the materials used in their manufacture, and

(ii) shall not include any amount in respect of value-added tax chargeable on the sale of the goods or merchandise.

(b) The inspector may, by notice in writing, require a company making a claim for relief under this Chapter to furnish him with such information or particulars as may be necessary for the purposes of giving effect to this subsection and subsection (2) shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this subsection.

(6) In relation to a case where the trade mentioned in subsection (2) consists partly of exempted trading operations within the meaning of Part V of the Corporation Tax Act, 1976 —

(a) section 71 of that Act shall have effect as if the references therein to “this Act” included a reference to this Chapter, and

(b) all amounts receivable from the sale of goods or merchandise in the course of the said exempted trading operations shall be disregarded for the purposes of this Chapter.

(7) In relation to a case where the trade mentioned in subsection (2) is carried on by an agricultural society or a fishery society within the meaning of section 18 of the Finance Act, 1978 , all amounts receivable by the society from the sale of goods or merchandise, being amounts which are so receivable by virtue of exempted transactions within the meaning of that section, shall be disregarded for the purposes of this Chapter.

(8) A company shall not be entitled to relief under this Chapter in relation to a trade as respects a relevant accounting period unless it makes a claim for the relief under subsection (2) before the date on which the assessment for the accounting period which coincides with or includes that relevant accounting period becomes final and conclusive.

Provisions relating to relief under Part IV (profits from export of certain goods) of Corporation Tax Act, 1976.

42.—(1) Save as is provided for in subsections (2) and (3), relief from corporation tax shall not be given under Part IV of the Corporation Tax Act, 1976 , in respect of any accounting period or part of an accounting period falling after the 31st day of December, 1980.

(2) (a) Subject to subsection (4), the provisions of subsection (1) shall not prevent relief being given under Part IV of the Corporation Tax Act, 1976 , to a company in relation to a trade carried on by it where the company, in the course of the trade, has at any time prior to the 1st day of January, 1981, exported out of the State any goods within the meaning of Part IV of the Corporation Tax Act, 1976 .

(b) Subject to subsection (4), where—

(i) a company (hereafter in this paragraph referred to as “the succeeding company”) succeeds to a trade or a part of a trade which, on or after the 1st day of January, 1981, was carried on by another company (hereafter in this paragraph referred to as “the original company”),

(ii) the original company has or could have made a claim to relief, by virtue of paragraph (a) or subsection (3), in relation to the trade or the part of the trade under Part IV of the Corporation Tax Act, 1976 , and

(iii) the original company had not ceased by virtue of subsection (4) to be entitled to claim relief under the said Part IV in relation to the trade or the part of the trade,

then the provisions of the said Part IV shall apply to the succeeding company as if the original company and the succeeding company were respectively the original company and the succeeding company within the meaning of section 62 (3) of the said Act.

(c) Where—

(i) subsequent to the succession described in paragraph (b) (1), another company (hereafter in this paragraph referred to as “the second succeeding company”) succeeds to a trade or a part of a trade of the company referred to in the said paragraph (b) as “the succeeding company” and which is hereafter in this paragraph referred to as “the first succeeding company”, and

(ii) that trade or that part of a trade is a trade or a part of a trade to which the said paragraph (b) applied,

then the said paragraph (b) shall apply with any necessary modifications as if the first succeeding company were the company referred to in the said paragraph (b) as “the original company” and as if the second succeeding company were the company referred to in the said paragraph (b) as “the succeeding company” and so on as regards any later such successions.

(3) Subject to subsection (4), the provisions of subsection (1) shall not apply to a company, in relation to a trade carried on by it to which subsection (2) does not apply, if, in respect of the trade, an assurance in writing has been given by a person duly authorised by the Minister for Finance to be his agent for that purpose that the provisions of the Tax Acts, including Part IV of the Corporation Tax Act, 1976 , would apply to the trade as if subsection (1) had not been enacted:

Provided that—

(a) no such assurance shall be given unless the Minister for Finance, or his agent duly authorised as aforesaid, is satisfied that the trade carried on or to be carried on by the company contributes, or would contribute, significantly to regional or national development,

(b) any such assurance shall be given in such form and manner and subject to such conditions as the Minister for Finance may direct,

(c) no such assurance shall be given on a date later than the 31st day of December, 1980, and

(d) where an assurance in writing has been given on a date not later than the 31st day of December, 1980, by a person duly authorised by the Government to be their agent for that purpose and that assurance is to the like effect as the assurance first mentioned in this subsection, this subsection shall have effect as if the assurance so given were the assurance so first mentioned and as if the provisions of this subsection relating to the giving of assurances were complied with in all respects.

(4) A company which claims relief under this Chapter in relation to a trade as respects a relevant accounting period shall not be entitled by virtue of subsection (2) or (3) to claim relief in relation to the trade under Part IV of the Corporation Tax Act, 1976 , as respects any accounting period or part of an accounting period falling after the day immediately prior to the date of the commencement of that relevant accounting period.

(5) (a) Section 58 of the Corporation Tax Act, 1976 , is hereby amended, as respects accounting periods which end on or after the 1st day of January, 1981, by the substitution for subsection (10) of the following subsection:

“(10) For the purposes of this section ‘relevant corporation tax’ means the corporation tax which, apart from this section, sections 182 (relief in respect of unrelieved losses and capital allowances carried forward from the year 1975-76) and 184 (relief in respect of corporation profits tax losses) and section 41 of the Finance Act, 1980, would be chargeable for the relevant accounting period exclusive of the corporation tax chargeable on the part of the company's profits attributable to chargeable gains for that period; and that part shall be taken to be the amount brought into the company's profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description.”.

(b) Paragraph (a) shall apply in relation to any claim made on or after the 6th day of May, 1980, for relief from corporation tax under Part IV of the Corporation Tax Act, 1976 , as respects any relevant accounting period within the meaning of that Part which ends before the 1st day of January, 1981, as it applies as respects accounting periods ending on or after that date, with the modification that, in relation to cases where section 186 of that Act has effect for the relevant accounting period in respect of which the claim is made, subsection (10) (inserted by paragraph (a)) of section 58 of that Act shall have effect as if the references therein to sections 182 and 184 of that Act included a reference to the said section 186.

(6) Section 64 of the Corporation Tax Act, 1976 , is hereby amended, as respects accounting periods which end on or after the 1st day of January, 1981—

(a) in subsection (2), in the definition of A, after “liability to corporation tax on its income”, by inserting “(other than its income from the sale of goods within the meaning of section 41 of the Finance Act, 1980)”, and the said definition, as so amended, is set out in the Table to this paragraph.

TABLE

A is an amount arrived at by applying to the amount of the company's distributable income for the accounting period, excluding distributions received by the company in that period, the fraction where D is the standard rate per cent. for the year of assessment in which the relevant distribution is made reduced in the same proportion as the company's liability to corporation tax on its income (other than its income from the sale of goods within the meaning of section 41 of the Finance Act, 1980) for the accounting period is reduced under section 58, subject to paragraph (c) of the proviso to section 182 (3) (transitional relief for income tax losses, etc.) and paragraph (iii) of the proviso to section 184 (3) (relief in respect of corporation profits tax losses),

and

(b) by the insertion after subsection (4) of the following subsection:

“(4A) Where the distributable income of a company for an accounting period falls to be determined for the purposes of this section in relation to a distribution made by the company for that accounting period (hereafter in this subsection referred to as ‘the first-mentioned distribution’), there shall be deducted from the aggregate mentioned in subsection (4) the aggregate of the following amounts—

(a) the amount of the company's income which, in relation to the first-mentioned distribution, falls to be taken into account in the definition of A in section 45 (1) of the Finance Act, 1980 (before any reduction under section 47 (2) (i) or 48 (2) (i) of that Act), as income of the company for the relevant accounting period (within the meaning of Chapter VI of Part I of that Act) which coincides with or is included in the said accounting period less the amount of corporation tax which falls to be taken into account in the definition of B in the said section 45 (1) in respect of that amount of the company's income, and

(b) an amount equal to the distributions received by the company in the accounting period which are relevant distributions within the meaning of section 45 of the Finance Act, 1980, and which fall to be included within the definition of E in subsection (1) of that section in relation to the first-mentioned distribution.”.

Provisions relating to exempted trading operations under Part V (profits from trading within Shannon Airport) of Corporation Tax Act, 1976.

43.—(1) Save as is provided for in subsections (2) and (3), no trading operation of any company carried on on or after the 1st day of January, 1981, shall be an exempted trading operation for the purposes of Part V of the Corporation Tax Act, 1976 .

(2) Subject to subsection (4), where, by virtue of a certificate given under section 70 (2) of the Corporation Tax Act, 1976 , or of a certificate having effect as if it were so given, any trading operations of a company are, on the 31st day of December, 1980, exempted trading operations within the meaning of that section, then the provisions of subsection (1) shall not prevent the application of Part V of that Act to those trading operations.

(3) Where any trading operations of a company commence on or after the 1st day of January, 1981, and, but for the provisions of subsection (1), a certificate would be given under section 70 (2) of the Corporation Tax Act, 1976 , certifying that those trading operations were exempted trading operations for the purposes of Part V of that Act, then the Minister for Finance may give such a certificate as is provided for in that section in relation to those trading operations if, in respect of those trading operations, an assurance in writing has been given by a person duly authorised by the Minister for Finance to be his agent for that purpose that the provisions of the Tax Acts, including Part V of the Corporation Tax Act, 1976 , would apply to those trading operations as if subsection (1) had not been enacted; and, subject to subsection (4), where such a certificate is given the provisions of subsection (1) shall not prevent the application of the said Part V to those trading operations:

Provided that—

(a) no such assurance shall be given unless the Minister for Finance, or his agent duly authorised as aforesaid, is satisfied that the trading operations contribute, or would contribute, significantly to regional or national development,

(b) any such assurance shall be given in such form and manner and subject to such conditions as the Minister for Finance may direct, and

(c) no such assurance shall be given on a date later than the 31st day of December, 1980.

(4) Where a company claims relief under this Chapter in relation to a trade as respects a relevant accounting period during which the trade consisted of exempted trading operations specified in a certificate mentioned in subsection (2) or (3), then those trading operations shall cease to be exempted trading operations for the purposes of Part V of the Corporation Tax Act, 1976 , to the extent that they are carried on on or after the first day of that relevant accounting period.

Transactions between associated persons.

44.—(1) Where a company making a claim for relief under this Chapter (hereafter in this subsection referred to as “the buyer”) buys from another person (hereafter in this subsection referred to as “the seller”), and

(a) the seller has control over the buyer or, the seller being a body corporate or partnership, the buyer has control over the seller or some other person has control over both the seller and the buyer, and

(b) the price in the transaction is less than that which might have been expected to obtain if the parties to the transaction had been independent parties dealing at arm's length,

then the income or losses of the buyer and the seller shall be computed, for any purpose of the Tax Acts, as if the price in the transaction had been that which would have obtained if the transaction had been a transaction between independent persons dealing as aforesaid.

(2) Where a company making a claim for relief under this Chapter (hereafter in this subsection referred to as “the seller”) sells goods to another person (hereafter in this subsection referred to as “the buyer”) and

(a) the buyer has control over the seller or, the buyer being a body corporate or partnership, the seller has control over the buyer or some other person has control over both the seller and the buyer, and

(b) the goods are sold at a price greater than the price which they might have been expected to fetch if the parties to the transaction had been independent parties dealing at arm's length,

then the income or losses of the buyer and the seller shall be computed, for any purpose of the Tax Acts, as if the goods had been sold by the seller to the buyer for the price which they would have fetched if the transaction had been a transaction between independent persons dealing as aforesaid.

(3) For the purposes of subsection (2) a company shall be deemed to sell goods where and to the extent that, for the purposes of this Chapter, any amount receivable by it in payment for any trading activity is regarded as an amount receivable from the sale of goods and “seller” and “buyer” shall be construed accordingly.

(4) In this section “control” has the meaning assigned to it by section 158 of the Corporation Tax Act, 1976 .

(5) The inspector may by notice in writing require a company making a claim for relief under this Chapter to furnish him with such information or particulars as may be necessary for the purposes of this section, and section 41 (2) shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this section.

Distributions.

45.—(1) For the purposes of this section a distribution made by a company shall be a relevant distribution if it is made on a day (hereafter in this section referred to as “the relevant day”) falling on or after the 1st day of January, 1981, and if the total amount of the distributions made by the company on that day does not exceed an amount (hereafter in this section referred to as “the amount of the primary fund”) determined by the formula

(A−B) + (C−D) + E−F

where, subject to sections 46 to 49—

A is the amount of the company's income the corporation tax in respect of which is reduced under section 41 for the last relevant accounting period of the company which ended before the relevant day:

Provided that where the distribution is not a distribution declared by the company in a general meeting held as an annual general meeting this definition shall have effect as if the reference therein to the last relevant accounting period which ended before the relevant day were a reference to the relevant accounting period of the company in which the distribution is made,

B is the amount of the corporation tax, as reduced under section 41, in respect of the amount of income mentioned in the definition of A,

C is the aggregate of the amounts of the company's income the corporation tax in respect of which is reduced under section 41 for all relevant accounting periods of the company preceding the relevant accounting period which falls to be taken into account in the definition of A,

D is the aggregate of the amounts of the corporation tax, as reduced under section 41, in respect of the amounts of income comprised in the aggregate amount calculated in accordance with the definition of C,

E is the aggregate amount of the relevant distributions received by the company at any time prior to the relevant day:

Provided that a relevant distribution shall not be included within this definition if the distribution, together with the tax credit to which the company is entitled in respect of it, is franked investment income against which relief is given under section 15 (4), 25 or 26 of the Corporation Tax Act, 1976 , and which relief was not subsequently withdrawn under the provisions of those sections, and

F is the aggregate amount of the relevant distributions made by the company on any day earlier than the relevant day.

(2) Where in relation to a company the amount of the primary fund is greater than zero but is less than the total amount of the distributions made by the company on the relevant day, a distribution made by the company on that day shall be treated as if it consisted of two distributions being, respectively—

(a) a relevant distribution equal to such an amount as bears to the whole of the distribution the same proportion as the amount of the primary fund bears to the total amount of the distributions so made on that day, and

(b) a separate distribution which is not a relevant distribution and which consists of the balance of the distribution.

(3) The tax credit to which a recipient of a relevant distribution is entitled in respect of it shall, notwithstanding section 88 (2) of the Corporation Tax Act, 1976 , be an amount equal to one-eighteenth of the amount of the relevant distribution.

(4) In relation to a relevant distribution, section 83 (4) (a) of the Corporation Tax, Act, 1976, shall have effect as if for “income tax at the standard rate for that year on” there were substituted “one-nineteenth of”.

(5) The tax credit (if any) to which the recipient of a distribution to which subsection (2) (b) applies is entitled in respect of the distribution shall be calculated in accordance with the provisions of the Corporation Tax Acts other than subsection (3).

(6) In relation to a relevant distribution (including part of a distribution which is treated under subsection (2) as a relevant distribution) made by a company, sections 5 and 83 (5) of the Corporation Tax Act, 1976 , shall apply to the company so that the statements provided for by those sections shall show, as respects each such distribution, in addition to the particulars required to be given apart from this subsection, that the distribution is a relevant distribution within the meaning of this section.

(7) Where, on a claim being made by a company for relief under this Chapter in relation to a trade for any relevant accounting period, it appears to the inspector, or, on appeal, to the Appeal Commissioners, that, when account is taken of that relief, the amount of the primary fund in relation to any distribution (including part of a distribution to which subsection (2) (b) applies) made by the company on a relevant day is such that the amount of the tax credit to which the recipient of the distribution was shown to be entitled on the statement annexed to or accompanying any warrant or cheque or other order mentioned in section 5 of the Corporation Tax Act, 1976 , or in any statement mentioned in section 83 (5) of that Act, is greater than the amount of the tax credit to which the said recipient is entitled under the provisions of this section, then any relief under this Chapter to which the company would otherwise be entitled in respect of the trade for the relevant accounting period shall be reduced by the excess of the amount of the tax credit to which the recipient was so shown to be entitled over the amount to which he is entitled under the provisions of this section, and there shall be made such additional assessments or adjustments of assessments as may in any case be required in order to give effect to this subsection:

Provided that—

(a) no account shall be taken of the reduction of relief under this Chapter by virtue of this subsection in determining any amount which falls to be taken into account—

(i) in the definition of B or D in subsection (1),

(ii) in paragraph (bb) of the proviso to subsection (3) of section 182 of the Corporation Tax Act, 1976 , or

(iii) in paragraph (iiA) of the proviso to subsection (3) (b) of section 184 of that Act, and

(b) the provisions of this subsection shall not apply if the inspector, or, on appeal, the Appeal Commissioners, is or are satisfied that, either by reason of a correction by the company of the statement annexed to or accompanying the relevant warrant or cheque or other order mentioned in section 5 of the Corporation Tax Act, 1976 , or of the statement mentioned in section 83 (5) of that Act, or for any other good and sufficient reason, it would be just and reasonable that they should not apply.

(8) The inspector may by notice in writing require a company to furnish him with such information or particulars as may be necessary for the purposes of this section and if the company does not comply with the requirements of the notice it shall be liable to a penalty of £100.

Treatment of certain deductions in relation to relevant distributions.

46.—(1) In this section “relevant deduction”, in relation to a relevant accounting period of a company, means any amount allowed as a deduction against the total profits of the company in that period in respect of—

(a) charges on income,

(b) group relief,

(c) any allowance in respect of capital expenditure to which effect is given for that period under section 14 (6) of the Corporation Tax Act, 1976 ,

(d) any loss in respect of which the profits of that period are treated as reduced under section 16 (2) of that Act, or

(e) other amounts which, under the Corporation Tax Acts, can be deducted from or set against or treated as reducing profits of more than one description.

(2) Where, for any relevant accounting period of a company—

(a) the corporation tax referable to the income of the company from the sale of goods falls to be reduced under section 41, and

(b) a relevant deduction has been allowed against the total profits in computing the corporation tax chargeable,

then, the amount of the company's income which falls to be taken into account in the definition of A or C in section 45 (1) in respect of that relevant accounting period shall be reduced by an amount equal to such part of the relevant deduction as bears to the whole the same proportion as the amount of the income of the company from the sale of goods bears to the total income brought into charge to corporation tax for the relevant accounting period.

Provisions relating to relief for certain losses and capital allowances carried forward from 1975-76.

47.—(1) Section 182 of the Corporation Tax Act, 1976 , is hereby amended—

(a) in subsection (1), by the substitution for the definition of “relevant corporation tax” of the following definition:

“‘relevant corporation tax’ has, in relation to an accounting period, the meaning assigned to it in subsection (10) (inserted by the Finance Act, 1980) of section 58 with the substitution of ‘the accounting period’ for ‘the relevant accounting period’.”,

and

(b) in the proviso to subsection (3), by the insertion after paragraph (b) of the following paragraph:

“(bb) where the corporation tax payable by the company for an accounting period is reduced by virtue of a claim under section 41 (2) (basis of relief from corporation tax: manufacturing companies) of the Finance Act, 1980, the relief to be given under this section for the accounting period shall be reduced in the same proportion as the corporation tax payable by the company for the accounting period so far as it is attributable to the income from the trade is so reduced; and the corporation tax attributable to the income from the trade shall be the amount mentioned in paragraph (b);”.

(2) Where, for any accounting period of a company which coincides with or includes a relevant accounting period—

(a) the corporation tax which is referable to the income of the company from the sale in the course of a trade of goods for the relevant accounting period falls to be reduced under section 41, and

(b) a reduced relief under section 182 of the Corporation Tax Act, 1976 , is allowed as respects the accounting period in accordance with the provisions of paragraph (bb) of the proviso to subsection (3) of the said section 182,

then—

(i) the amount of the company's income which, apart from this paragraph, falls to be taken into account in the definition of A or C in section 45 (1) in respect of the relevant accounting period shall be reduced by an amount determined by the formula

where—

G is the amount of the reduction in the relief in respect of the trade for the accounting period under the provisions of the said paragraph (bb) of the said proviso,

H is the income of the accounting period within the meaning of section 28 (8) of the Corporation Tax Act, 1976 , and

J is the relevant corporation tax for the accounting period within the meaning of the said section 182,

and

(ii) the amount of the corporation tax (as reduced under section 41) which, apart from this paragraph, falls to be taken into account in the definition of B or D in section 45 (1) in respect of the relevant accounting period shall be reduced by an amount determined by the formula

where G has the same meaning as in paragraph (i).

Provisions relating to relief for certain corporation profits tax losses.

48.—(1) Subsection (3) of section 184 of the Corporation Tax Act, 1976 , is hereby amended—

(a) in paragraph (b), by the substitution for the definitions of A and B of the following definitions:

“A is the excess of the amount of corporation tax which, apart from sections 58 (basis of relief from corporation tax for export profits), 182, this section and section 41 of the Finance Act, 1980, is chargeable for the accounting period over an amount calculated by applying a rate equal to the standard rate for the year of assessment in which the accounting period ends to the amount of the company's income for the accounting period, and

B is the excess of the amount of corporation tax which, apart from sections 58, 182, this section and section 41 of the Finance Act, 1980, would be chargeable for the accounting period if the amount of the company's income for the accounting period were reduced by the appropriate amount over an amount calculated by applying a rate equal to the standard rate for the year of assessment in which the accounting period ends to the amount of the company's income for the accounting period as reduced by the appropriate amount:”,

and

(b) in the proviso to paragraph (b), by the deletion of “and” in paragraph (ii) and by the substitution for paragraph (iii) and the paragraph immediately following it of the following:

“(iiA) where the corporation tax payable by a company for an accounting period is reduced by virtue of a claim under section 41 (2) of the Finance Act, 1980, the amount of relief to be allowed under the foregoing provisions of this section shall be reduced in the same proportion which the amount by which the corporation tax referable to the income from the sale of goods (within the meaning of the said section 41) for that accounting period is so reduced bears to the relevant corporation tax; and

(iii) the amount of a reduction made for an accounting period under paragraph (i) or (ii) of this proviso shall, for the purposes of section 64, be deemed to be a reduction of the amount of relief allowed under section 58, and for the purposes of this proviso—

(I) ‘corporation tax referable to the income attributable to the excess’ and ‘corporation tax referable to the income from the sale of goods exported’ have the meanings assigned to them in section 58, and

(II) ‘relevant corporation tax’ has the meaning assigned to it in section 182.”.

(2) Where, for any accounting period of a company which coincides with or includes a relevant accounting period—

(a) the corporation tax which is referable to the income of the company from the sale in the course of the trade of goods for the relevant accounting period falls to be reduced under section 41, and

(b) a reduced relief under section 184 of the Corporation Tax Act, 1976 , is allowed as respects the accounting period in accordance with the provisions of paragraph (iiA) of the proviso to subsection (3) (b) of the said section 184,

then—

(i) the amount of the company's income which, apart from this paragraph, falls to be taken into account in the definition of A or C in section 45 (1) in respect of the relevant accounting period shall be reduced by an amount determined by the formula

where—

K is the amount of the relief for the accounting period under the said section 184 before any reduction in that relief under the provisions of the proviso to subsection (3) (b) of that section,

L is the income of the accounting period within the meaning of section 28 (8) of the Corporation Tax Act, 1976 ,

M is the relevant corporation tax within the meaning of section 182 of the Corporation Tax Act, 1976 , in relation to the accounting period,

N is the income from the sale of goods, within the meaning of section 41, for the relevant accounting period, and

P is the total income brought into charge to corporation tax for the accounting period,

and

(ii) the amount of the corporation tax (as reduced under section 41) which, apart from this paragraph, falls to be taken into account in the definition of B or D in section 45 (1) in respect of the relevant accounting period shall be reduced by an amount determined by the formula

where Q is the amount of the reduction in the relief for the accounting period under the provisions of the said paragraph (iiA) of the said proviso.

Dividends and other distributions at gross rate or of gross amount.

49.—(1) Where a company makes a relevant distribution within the meaning of section 45, including part of a distribution treated under section 45 (2) as a relevant distribution, in respect of any right or obligation to which section 178 of the Corporation Tax Act, 1976 , applies, the company shall make a supplementary distribution of an amount equal to the excess of the amount of the tax credit which would have applied in respect of the relevant distribution if section 45 (3) had not been enacted over the amount of the tax credit which in accordance with the said section 45 (3) applies to the relevant distribution.

(2) Where the whole or part of a supplementary distribution under subsection (1) is a relevant distribution within the meaning of subsection (1) or (2) (a) of section 45 and the recipient of that relevant distribution is a company, then, for the purposes of determining whether and to what extent a distribution made by that company is a relevant distribution, the whole or part (as the case may be) of the supplementary distribution shall be an amount to be taken into account under the definition of E in the formula in the said section in relation to that distribution made by that company.

(3) Notwithstanding the provisions of section 88 of the Corporation Tax Act, 1976 , the recipient of a supplementary distribution under subsection (1) shall not be entitled to a tax credit in respect of it.

(4) In relation to any supplementary distribution within the meaning of subsection (1), section 5 of the Corporation Tax Act, 1976 , shall apply to the company so that the statement required by that section shall show, in addition to the particulars required to be given apart from this section, the separate amount of such supplementary distribution.

Exclusion of mining and construction operations.

50.—(1) For the purposes of relief under this Chapter income from the sale of goods shall not include income from—

(a) any mining operations for the purpose of obtaining, whether by underground or surface working, any scheduled mineral, mineral compound or mineral substance, within the meaning of section 2 of the Minerals Development Act, 1940 , or

(b) any construction operations within the meaning of section 17 of the Finance Act, 1970 (inserted by the Finance Act, 1976 ).

(2) Where a company carries on a trade which consists of or includes the manufacture of goods and, in the course of the trade, carries on any mining operations within the meaning of subsection (1) (a) from which it obtains any scheduled mineral, mineral compound or mineral substance of the kind referred to in that subsection and any such mineral, compound or substance is not sold by the company in the course of the trade but forms the whole or part of the materials used in the manufacture of such goods or is to any extent incorporated in the goods in the course of their manufacture, then, part of the income which, apart from this subsection, would be income from the sale of goods for the purposes of section 41 shall be deemed, for the purposes of subsection (1), to be income from such mining operations and that part shall, for the purposes of that subsection, be such amount as appears to the inspector or, on appeal, to the Appeal Commissioners, to be just and reasonable.

(3) Where the amount receivable from a sale of goods includes consideration for the carrying out, in relation to those goods, of any construction operations as defined in subsection (1) (b), then, part of the income which, apart from this subsection, would be income from the sale of goods for the purposes of section 41, shall be deemed, for the purposes of subsection (1), to be income from such construction operations and that part shall, for the purposes of that subsection, be such amount as appears to the inspector or, on appeal, to the Appeal Commissioners, to be just and reasonable.

Appeals.

51.—An appeal to the Appeal Commissioners shall lie on any question arising under this Chapter in like manner as an appeal would lie against an assessment to corporation tax and the provisions of the Tax Acts relating to appeals shall apply and have effect accordingly.

Chapter VII

Income Tax and Corporation Tax

Amendment of section 40 (application of section 31 (building societies) of Corporation Tax Act, 1976, for certain years of assessment) of Finance Act, 1977.

52.— Section 40 of the Finance Act, 1977 , is hereby amended by the substitution of “six” for “four” (inserted by the Finance Act, 1978 ) in each place where it occurs in subsection (1), and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

(1) Notwithstanding the proviso to section 31 (1) of the Corporation Tax Act, 1976 , any arrangements entered into by the Revenue Commissioners and any building society as respects the year of assessment 1975-76, in so far as they provide for payment of an amount representing income tax calculated in part at the standard rate and in part at a reduced rate, may, with any necessary modifications, be continued for the six years of assessment immediately following for the purpose of determining, in relation to that building society, the amount representing income tax which is referred to in paragraph (a) of the said section 31 (1) and that section shall have effect in relation to any arrangements so continued for the said six years.

Amendment of provisions relating to relief in respect of increase in stock values.

53.—(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended by the substitution of “1980” for “1979”—

(a) in paragraph (iv) (inserted by the Finance Act, 1979 ) of the proviso (inserted by the Finance Act, 1977 ) to subsection (4) (a),

(b) in subsection (7) (inserted by the Finance Act, 1977 ), and

(c) in subsection (9) (inserted by the Finance Act, 1977 ) in each place where it occurs,

and the said paragraph, the said subsection (7) (other than the proviso) and the said subsection (9) (other than the proviso), as so amended, are set out in the Table to this subsection.

TABLE

(iv) a deduction shall not be allowed under the provisions of this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 1980.

(7) Where in relation to an accounting period a company's opening stock value exceeds its closing stock value, the amount of the excess (in this section referred to as the company's “decrease in stock value”) shall, if the accounting period ends on a date before the 6th day of April, 1980, be treated in the computation of the company's trading income for the purposes of corporation tax, as a trading receipt of the company's trade for that accounting period:

(9) In the computation of a company's trading income for the purposes of corporation tax for any accounting period which ends on or after the 6th day of April, 1980, in which there is a decrease in stock value, there shall be treated as a trading receipt of the company's trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C

where—

A is the aggregate amount of the company's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1980,

B is the aggregate amount of the company's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1980, and

C is the aggregate of the amounts which under this subsection are treated as trading receipts of the company's trade for preceding accounting periods:

(2) Section 12 of the Finance Act, 1976 , is hereby amended—

(a) by the insertion, in paragraph (c) (inserted by the Finance Act, 1979 ) of subsection (2), after “1979-80” of “or 1980-81”,

(b) by the substitution in subsection (3) of “1980-81” for “1979-80” (inserted by the Finance Act, 1979 ), and

(c) by the substitution of “1980” for “1979” in each place where it occurs in subsection (5) (inserted by the Finance Act, 1978 ) and subsection (6) (inserted by the Finance Act, 1977 ),

and the said paragraph, the said subsection (3), the said subsection (5) (other than the proviso) and the said subsection (6) (other than the proviso), as so amended, are set out in the Table to this subsection.

TABLE

(c) Where a deduction allowed by virtue of this section in computing a person's trading profits of a trade for an accounting period has effect for the year 1979-80 or 1980-81, the amount of the deduction shall, notwithstanding any provision to the contrary, be three-fourths of the amount which, apart from this paragraph, would be the amount of the deduction for that accounting period.

(3) Any deduction allowed by virtue of this section in computing a person's trading profits for an accounting period shall not have effect for any purpose of the Income Tax Acts for any year of assessment prior to the year 1974-75 or later than the year 1980-81.

(5) In the computation of a person's trading income for an accounting period in which there is a decrease in stock value and which ends on a date in the period from the 6th day of April, 1976, to the 5th day of April, 1980, the amount of that decrease shall be treated as a trading receipt of the trade for that accounting period:

(6) In the computation of a person's trading income for any accounting period in which there is a decrease in stock value and which ends on or after the 6th day of April, 1980, there shall be treated as a trading receipt of the trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C

where—

A is the aggregate amount of the person's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1980,

B is the aggregate amount of the person's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1980, and

C is the aggregate of the amounts which are treated as trading receipts of the person's trade for preceding accounting periods which ended on or after the 6th day of April, 1980:

Amendment of provisions relating to appeals.

54.—(1) Section 416 (5) of the Income Tax Act, 1967 , shall have effect as if “this Part” were substituted for “subsections (7) and (8)”.

(2) Section 421 of the Income Tax Act, 1967 , shall have effect, and, as respects paragraph (b), shall be deemed always to have had effect, as if—

(a) the following proviso were added to subsection (2):

“Provided that the Commissioners may permit any other person representing the appellant to plead before them where they are satisfied that such permission should be given.”,

(b) the following subsections were added:

“(5) Unless the circumstances of the case otherwise require—

(a) where on an appeal against an assessment which assesses an amount which is chargeable to tax it appears to the Commissioners that the appellant is overcharged by the assessment they may, in determining the appeal, reduce only the amount which is chargeable to tax,

(b) where, on such an appeal as aforesaid, it appears to the Commissioners that the appellant is correctly charged by the assessment they may, in determining the appeal, order that the amount which is chargeable to tax shall stand good, and

(c) where, on such an appeal as aforesaid, it appears to the Commissioners that the appellant ought to be charged in an amount exceeding the amount contained in the assessment, they may charge the excess by increasing only the amount which is chargeable to tax.

(6) Where an appeal is determined by the Commissioners, the inspector or other officer shall give effect to the Commissioners' determination and thereupon, if the determination is that the assessment is to stand good or is to be amended, the assessment or the amended assessment, as the case may be, shall have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given.”.

Amendment of provisions relating to charge of income tax under Schedules.

55.—The following section shall be substituted for section 4 of the Income Tax Act, 1967 :

“4.—Where any Act enacts that income tax shall be charged for any year at any rate or rates, tax at that rate or at those rates, as may be appropriate, shall, subject to the provisions of this Act and the Corporation Tax Act, 1976 , be charged for that year in respect of all property, profits or gains respectively described or comprised in the Schedules contained in the sections enumerated below, that is to say—

Schedule C — Section 47;

Schedule D — Section 52;

Schedule E — Section 109; and

Schedule F — Section 83 of the Corporation Tax Act, 1976 ,

and in accordance with the provisions of this Act and of the Corporation Tax Act, 1976 , respectively applicable to those Schedules.”.

Amendment of section 24 (business entertainment expenses) of Finance Act, 1973.

56.— Section 24 of the Finance Act, 1973 , is hereby amended—

(a) by the insertion after subsection (1) of the following subsection—

“(1A) In respect of any expenses incurred on or after the 27th day of February, 1980, in providing business entertainment, no sum shall be—

(a) deducted in computing the amount of profits or gains chargeable to tax under Schedule D, or

(b) included in computing any expenses of management in respect of which a deduction may be claimed under section 15 or 33 of the Corporation Tax Act, 1976 ,

in excess of 50 per cent. of the sum which, but for this subsection, would have been so deducted or so included.”,

(b) as respects the year 1980-81 and subsequent years of assessment and as respects any accounting period of a company which ends on or after the 6th day of April, 1980, by the substitution for subsection (3) of the following subsection—

“(3) (a) Where any asset is used or is provided for use, wholly or partly, for the purpose of providing business entertainment—

(i) if the expenses incurred or to be incurred in respect of the provision of the said business entertainment are not or will not be wholly, exclusively and necessarily laid out or expended for the purposes of a trade, no allowance under the specified provisions shall be allowed in respect of the use of the asset or the expenditure incurred in the provision of the asset to the extent that it is used or is to be used for the purposes of the said business entertainment,

(ii) if the expenses incurred or to be incurred in respect of the provision of the business entertainment are or will be wholly, exclusively and necessarily incurred for the purposes of a trade, no allowance under the specified provisions shall be allowed in respect of the use of the asset or the expenditure incurred in the provision of the asset to the extent that it is used or is to be used for the purpose of the said business entertainment save to the extent of 50 per cent. of the allowance which, apart from this subparagraph, would have been allowed.

(b) In this subsection ‘specified provisions’ means section 241, Chapter III of Part XIV, Chapters I and III of Part XV and Chapters II and V of Part XVI of the Income Tax Act, 1967 , and section 22 of the Finance Act, 1971 .”,

and

(c) by the substitution in subsection (4) of “subsections (1) and (1A) apply” for “subsection (1) applies”.

Use of certificates in proceedings for recovery of tax or penalties.

57.—(1) Section 488 (5) of the Income Tax Act, 1967 , is hereby amended by the insertion in paragraph (a) after subparagraph (i) of the following subparagraph:

“(ia) under the provisions of section 429 (4) (inserted by section 19 of the Finance Act, 1971 ), or”.

(2) Section 500 of the Income Tax Act, 1967 , is hereby amended by the insertion after subsection (3) of the following subsection:

“(4) In proceedings for recovery of a penalty incurred under this section or under section 501—

(i) a certificate signed by an officer of the Revenue Commissioners which certifies that he has examined his relevant records and that it appears from them that a stated notice or precept was duly given to the defendant on a stated day shall be evidence until the contrary is proved that that person received that notice or precept in the ordinary course,

(ii) a certificate signed by an officer of the Revenue Commissioners which certifies that he has examined his relevant records and that it appears from them that, during a stated period, a stated notice or precept has not been complied with by the defendant shall be evidence until the contrary is proved that the defendant did not, during that period, comply with that notice or precept,

(iii) a certificate signed by an officer of the Revenue Commissioners which certifies that he has examined his relevant records and that it appears from them that, during a stated period, the defendant has failed to do a stated act, furnish stated particulars or deliver a stated account in accordance with any of the provisions specified in column 3 of Schedule 15 shall be evidence until the contrary is proved that the defendant did so fail,

(iv) a certificate certifying as provided for in subparagraph (i), (ii) or (iii) and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by such officer.”.

Amendment of section 265 (balancing allowances and balancing charges) of Income Tax Act, 1967.

58.— Section 265 (4) of the Income Tax Act, 1967 , is hereby amended by the substitution for “whole of the relevant period.” of “whole of the relevant period:

Provided that where, but for section 264 (4) or the proviso to paragraph 1 (5) of the First Schedule to the Corporation Tax Act, 1976 , a writing-down allowance would have been made to a person for any chargeable period, the part of the relevant period comprised in the said chargeable period or its basis period shall be deemed for the purposes of this subsection to be comprised in a chargeable period for which a writing-down allowance was made to the person.”.

Chapter VIII

Anti-evasion

Amendment of section 516 (penalty for false statement made to obtain allowance) of Income Tax Act, 1967.

59.—In relation to offences committed after the passing of this Act, the following section shall be substituted for section 516 of the Income Tax Act, 1967 :

“516.—A person who—

(a) knowingly makes any false statement or false representation—

(i) in any return or statement made with reference to tax, or

(ii) for the purpose of obtaining any allowance, reduction, rebate or repayment of tax either for himself or for any other person,

or

(b) knowingly and wilfully aids, abets, assists, incites or induces another person—

(i) to make or deliver a false or fraudulent account, return, list, declaration or statement with reference to property, profits or gains or to tax, or

(ii) unlawfully to avoid liability to tax by failing to disclose the full amount of his income from all sources,

shall be guilty of an offence and shall be liable, on summary conviction, to imprisonment for a term not exceeding six months.”.

Amendment of section 34 (inspection of documents and records) of Finance Act, 1976.

60.— Section 34 of the Finance Act, 1976 , is hereby amended by the substitution for subsection (2) of the following subsection:

“(2) (a) An authorised officer may at all reasonable times enter any premises or place where any trade or profession is carried on or anything is done in connection with the trade or profession and—

(i) may require the person carrying on the trade or profession, or any person on those premises or in that place who is employed by the person carrying on the trade or profession, to produce any books, records, accounts or other documents relating to the trade or profession and may remove and retain any such books, records, accounts or other documents relating to the trade or profession for such period as may be reasonable for their examination,

(ii) may examine any such books, records, accounts or other documents and may take copies of or extracts from the books, records, accounts or other documents,

(iii) may examine any property listed in any balance sheets, stock sheets or other such statements,

(iv) may require the person carrying on the trade or profession, or any person on those premises or in that place, who is employed by the person carrying on the trade or profession, to give the authorised officer all reasonable assistance.

(b) Nothing in this subsection shall be construed as requiring any person carrying on a profession, or any person employed by any person carrying on a profession, to produce to an authorised officer any documents relating to a client, other than such documents—

(i) as pertain to the payment of fees to the person carrying on the profession or to other financial transactions of the person carrying on the profession, or

(ii) as are otherwise material to the tax liability of the person carrying on the profession,

and, in particular, he shall not be required to disclose any information or professional advice of a confidential nature given to a client.”.

Chapter IX

Capital Gains Tax

Amendment of provisions relating to married person in Capital Gains Tax Act, 1975.

61.—The Capital Gains Tax Act, 1975 , is hereby amended, as respects the year 1980-81 and subsequent years of assessment—

(a) in section 2, by the substitution for subsection (3) of the following subsection:

“(3) (a) References in this Act to a married woman living with her husband shall be construed in accordance with subsection (1) of section 192 (inserted by the Finance Act, 1980) of the Income Tax Act, 1967 .

(b) For the purposes of paragraph (a) the reference in the aforementioned subsection (1) to a wife shall be construed as a reference to a married woman.”,

(b) in section 13, by the substitution for subsection (4) of the following subsection:

“(4) Where, apart from subsection (1), the amount on which an individual is chargeable to capital gains tax under section 5 (1) for a year of assessment (hereafter in this subsection referred to as “the first-mentioned amount”) is less than £500 and the spouse of the individual (being, at any time during that year of assessment, a married woman living with her husband, or that husband) is, apart from subsection (1), chargeable to capital gains tax on any amount for that year, section 16 (1) shall have effect in relation to the spouse as if the sum of £500 mentioned therein were increased by an amount equal to the difference between the first-mentioned amount and £500.”,

(c) in section 25 (9A) (inserted by the Finance Act, 1979 ), by the substitution for the proviso to paragraph (b) of the following proviso:

“Provided that not more than one dwelling-house (or part of a dwelling-house) may qualify for relief as being the residence of a dependent relative of the claimant at any one time.”, and

(d) in paragraph 10 of Schedule 4, by the substitution for subparagraph (2) of the following subparagraph:

“(2) Section 196 (special provisions relating to tax on wife's income) (inserted by the Finance Act, 1980) of the Income Tax Act, 1967 , shall apply with any necessary modifications in relation to capital gains tax as it applies in relation to income tax.”.

Deletion of references to sterling in Capital Gains Tax Act, 1975.

62.—The Capital Gains Tax Act, 1975 , is hereby amended, as respects the year 1980-81 and subsequent years of assessment—

(a) in section 7 (1), by the deletion in paragraph (b) of “and sterling”, and

(b) in section 46, by the deletion in subsection (6) of “or in sterling”,

and the said paragraph (b) and the said subsection (6), as so amended, are set out in the Table to this section.

TABLE

(b) any currency, other than Irish currency, and

(6) This section shall not apply to a debt owed by a bank which is not in Irish currency and which is represented by a sum standing to the credit of a person in an account in the bank unless it represents currency acquired by the holder for the personal expenditure outside the State of himself or his family or dependants (including expenditure on the maintenance of any residence outside the State).

PART II

Customs and Excise

Interpretation (Part II).

63.—In this Part “the Order of 1975” means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 (S.I. No. 307 of 1975).

Beer.

64.—(1) The duty of excise on beer imposed by paragraph 7 (1) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of £90.121 for, in the case of all beer brewed within the State, every 36 gallons of worts of a specific gravity of 1,055 degrees, and, in the case of all imported beer, every 36 gallons of beer of which the worts were before fermentation of a specific gravity of 1,055 degrees, in lieu of the rate mentioned in section 39 (1) of the Finance Act, 1979 .

(2) Subject to paragraph 4 of the Imposition of Duties (No. 246) (Beer) Order, 1980 (S.I. No. 49 of 1980), the drawback on beer provided for in paragraph 7 (3) of the Order of 1975 shall, as respects beer on which it is shown, to the satisfaction of the Revenue Commissioners, that duty at the rate mentioned in subsection (1) of this section has been paid, be calculated, according to the original specific gravity of the beer, at the rate of £90.121 on every 36 gallons of beer of which the original specific gravity was 1,055 degrees in lieu of the rate mentioned in section 39 (2) of the Finance Act, 1979 .

Spirits.

65.—(1) The duty of excise on spirits imposed by paragraph 4 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in the Second Schedule to this Act in lieu of the several rates specified in the second column of the First Schedule to the Imposition of Duties (No. 244) (Excise Duties on Spirits, Beer and Hydrocarbon Oils) Order, 1979 (S.I. No. 415 of 1979).

(2) Nothing in this section shall operate to relieve from or to prejudice or affect the additional duty of excise in respect of immature spirits imposed by paragraph 4 (2) of the Order of 1975 and charged, levied and paid at the several rates specified in the third column of the First Schedule to the Imposition of Duties (No. 244) (Excise Duties on Spirits, Beer and Hydrocarbon Oils) Order, 1979.

(3) Paragraph 4 (3) of the Order of 1975 is hereby amended, as on and from the 28th day of February, 1980, by the substitution for clauses (b) and (c) thereof of the following clauses:

“(b) Where spirits to which this subparagraph applies are delivered from a bonded warehouse, the Revenue Commissioners may, subject to compliance with such conditions for securing payment of the duty as they may think fit to impose, permit payment of the said duties to be deferred to a day not later than—

(i) in case the spirits are so delivered on a day in the month of December in any year up to and including the 20th day of that month, the last day of that month in the same year, or

(ii) in any other case, the last day of the month succeeding the month in which the spirits are so delivered.

(c) Where spirits to which this subparagraph applies are delivered from a bonded warehouse on or after the 21st day in the month of December in any year, no deferment of payment of duty as provided for in this subparagraph shall be allowed in respect of the spirits.”

(4) In the Second Schedule to this Act “alcohol” means pure ethyl alcohol.

Tobacco products.

66.—(1) In this section and in the Third Schedule to this Act—

“the Act of 1977” means the Finance (Excise Duties on Tobacco Products) Act, 1977;

“cigarettes”, “cigars”, “cavendish or negrohead”, “hard pressed tobacco”, “other pipe tobacco”, “smoking tobacco”, “chewing tobacco” and “tobacco products” have the same meanings as they have in the Act of 1977 as amended by the Order of 1979;

“the Order of 1979” means the Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979 (S.I. No. 296 of 1979).

(2) The duty of excise on tobacco products imposed by section 2 of the Act of 1977 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in the Third Schedule to this Act in lieu of the several rates specified in the Fourth Schedule to the Finance Act, 1979 and the Order of 1979.

Wine and made wine.

67.—(1) The duty of excise on wine imposed by paragraph 5 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in Part I of the Fourth Schedule to this Act in lieu of the several rates specified in the First Schedule to the Imposition of Duties (No. 245) (Excise Duties on Wine and Made Wine) Order, 1979 (S.I. No. 416 of 1979).

(2) The duty of excise on made wine imposed by paragraph 6 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in Part II of the Fourth Schedule to this Act in lieu of the several rates specified in the Second Schedule to the Imposition of Duties (No. 245) (Excise Duties on Wine and Made Wine) Order, 1979.

(3) In the Fourth Schedule to this Act—

“actual alcoholic strength by volume” means the number of volumes of pure alcohol contained at a temperature of 20°C in 100 volumes of the product at that temperature;

“% vol” means alcoholic strength by volume.

Cider and perry.

68.—(1) The duty of excise on cider and perry imposed by paragraph 8 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in the Fifth Schedule to this Act in lieu of the rates specified in the Sixth Schedule to the Finance Act, 1979 .

(2) In the Fifth Schedule to this Act—

“actual alcoholic strength by volume” means the number of volumes of pure alcohol contained at a temperature of 20°C in 100 volumes of the product at that temperature;

“% vol” means alcoholic strength by volume.

Table waters.

69.—(1) The duty of excise on table waters imposed by paragraph 9 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of £0.372 per gallon in lieu of the rate specified in the said paragraph 9 (2).

(2) The rebate of excise duty provided for by section 15 of the Finance Act, 1960 , shall not be allowed to any manufacturer of table waters in respect of table waters manufactured by him on or after the 1st day of March, 1980.

(3) (a) Subject to the subsequent paragraphs of this subsection, every manufacturer of table waters on which the duty of excise imposed by paragraph 9 (2) of the Order of 1975 is paid by him shall, on and after the 1st day of March, 1980, be allowed a rebate of the duty as follows in relation to each premises in which he manufactures the table waters:

(b) Where, apart from this paragraph, rebate under paragraph (a) of this subsection would fall to be allowed to a manufacturer in respect of two or more premises situate in the same county or other borough, urban district or town, the rebate shall be allowed in respect of one only of the premises.

(c) Where two or more persons successively manufacture table waters in any premises in any year commencing on the 1st day of March, then, as respects each of those persons other than the first—

(i) in case the amount of rebate which would be allowable under paragraph (a) of this subsection on the aggregate quantity of the table waters manufactured in the premises in that year by him and his predecessor or predecessors in the business in that year, assuming that those table waters had been manufactured by one person only, exceeds the aggregate amount of rebate allowable to such predecessor or predecessors in respect of table waters manufactured in the premises in that year, he shall not be allowed, by way of rebate under paragraph (a) of this subsection in respect of table waters manufactured by him in the premises in that year, an amount greater than the excess, and

(ii) in any other case, he shall not be allowed any such rebate.

(d) (i) In paragraph (b) of this subsection “town” means a town having commissioners under the Towns Improvement (Ireland) Act, 1854 , or any place which is designated as a town in the census of population which is for the time being the latest published such census.

(ii) If any question arises as to the census of population applicable at any time for the purposes of this paragraph, the Minister for Finance may certify accordingly and the certificate shall be conclusive.

(e) In a case in which, apart from this paragraph, paragraph (c) of this subsection would not apply merely because periods of manufacture of table waters are separated by an intervening period, that paragraph shall apply.

Hydrocarbons.

70.—(1) In this section—

“the Act of 1976” means the Finance Act, 1976 ;

“the Order of 1978” means the Imposition of Duties (No. 234) (Excise Duties on Hydrocarbon Oils and Beer) Order, 1978 (S.I. No. 2 of 1978).

(2) The duty of excise on mineral hydrocarbon light oil imposed by paragraph 11 (1) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of £13.54 per hectolitre in lieu of the rate specified in paragraph 3 of the Order of 1978.

(3) The duty of excise on hydrocarbon oil imposed by paragraph 12 (1) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of £7.89 per hectolitre in lieu of the rate specified in paragraph 5 of the Order of 1978.

(4) Notwithstanding clause (b) or (c) of paragraph 11 (5) of the Order of 1975, the duty of excise imposed by the said paragraph 11 (1) shall be charged, levied and paid at the rate of £1.53 per hectolitre, as on and from the 28th day of February, 1980, on mineral hydrocarbon light oil to which the said clause (b) or (c) applies, in lieu of the rate specified in section 40 (2) (a) of the Act of 1976, as amended by paragraph 4 of the Order of 1978.

(5) Notwithstanding subparagraph (6) of paragraph 12 of the Order of 1975, the duty of excise imposed by subparagraph (1) of the said paragraph 12 shall be charged, levied and paid at the rate of £1.53 per hectolitre, as on and from the 28th day of February, 1980, on hydrocarbon oil to which the said subparagraph (6) applies, in lieu of the rate specified in section 40 (2) (b) of the Act of 1976 as amended by paragraph 4 of the Order of 1978.

(6) Paragraph 11 (7) of the Order of 1975, as amended by section 40 (3) of the Act of 1976 and by paragraph 4 of the Order of 1978, shall be amended, as on and from the 28th day of February, 1980, by the substitution for “£0.44” of “£1.53”.

(7) Any authorisation issued before the 28th day of February, 1980, under the provisions of paragraph 11 (7) of the Order of 1975 in relation to the importation or the delivery from the premises of a refiner of hydrocarbon oil or from a bonded warehouse of articles chargeable with the duty imposed by paragraph 11 (1) of the Order of 1975, upon payment of a duty of excise at the rate of £0.44 per hectolitre payable under section 40 (4) of the Act of 1976, as amended by paragraph 4 of the Order of 1978, shall, so far as it affects articles imported or delivered on or after that date, be deemed to authorise the importation or delivery of such articles on payment of a duty of excise at the rate of £1.53 per hectolitre in lieu of payment of the duty of excise aforesaid.

(8) The repayments of excise duty provided for in paragraphs 11 (10) and 12 (10) of the Order of 1975 shall, where the duty is chargeable and paid after the 27th day of February, 1980, be at the rate of duty paid less an amount of £1.53 per hectolitre in lieu of the rate specified in section 40 (5) of the Act of 1976, as amended by paragraph 4 of the Order of 1978.

(9) Paragraph 12 (1) of the Order of 1975, as amended by section 40 (7) of the Act of 1976 and by paragraph 5 of the Order of 1978, shall be amended, as on and from the 28th day of February, 1980, by the substitution for the proviso thereto of the following proviso:

“Provided, however, that the said excise duty shall be charged, levied and paid at the rate of £1.53 per hectolitre on mineral hydrocarbon heavy oil within the meaning of section 7 (6) of the Finance Act, 1933 , so sent out or imported on or after the 28th day of February, 1980, in lieu of the rate chargeable under this subparagraph”.

(10) The amount of any rebate allowed under paragraph 12 (3) of the Order of 1975 shall, in respect of any hydrocarbon oil imported or delivered on or after the 28th day of February, 1980, be the amount of excise duty chargeable less an amount calculated at the rate of £1.53 per hectolitre in lieu of the rate specified in section 40 (8) of the Act of 1976 as amended by paragraph 4 of the Order of 1978.

(11) The amount of any repayment allowed under paragraph 4 of the Imposition of Duties (No. 232) (Hydrocarbon Oils) Order, 1977 (S.I. No. 279 of 1977), shall, in respect of any hydrocarbon oil imported or delivered from the premises of a refiner of hydrocarbon oil or from a bonded warehouse on or after the 28th day of February, 1980, be the amount of excise duty paid less an amount calculated at the rate of £0.44 per hectolitre.

(12) Paragraphs 11 (1) and 12 (1) of the Order of 1975 and section 41 (1) of the Act of 1976 shall be amended by the substitution of “produced or manufactured in the State” for “made in the State”, where the latter expression occurs in those paragraphs and that section and in the said paragraphs and section “manufacturer” shall be construed as including producer.

(13) As on and from the 28th day of February, 1980, the rate of any repayment allowed under paragraph 12 (11) of the Order of 1975, as amended by paragraph 6 of the Order of 1978, in respect of hydrocarbon oil on which such repayment is allowable and on which the excise duty mentioned in subsection (3) of this section was paid at the rate of £7.89 per hectolitre shall be £6.10 per hectolitre in lieu of the rate allowable immediately before the 28th day of February, 1980.

(14) The duty of excise on gaseous hydrocarbons in liquid form imposed by section 41 (1) of the Act of 1976 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of £0.30 per gallon in lieu of the rate specified in subsection (b) of the said section 41 (1).

(15) Section 42 (2) of the Act of 1976 shall be amended, as on and from the 28th day of February, 1980, by the substitution for “£0.02” of “£0.07”.

Motor vehicles.

71.—The duty of excise imposed by paragraph 4 (1) of the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 (S.I. No. 57 of 1979), on category A motor vehicles, within the meaning of paragraph 3 (a) of the said Order, shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of an amount equal to 40 per cent. of the chargeable value, in lieu of the rate specified in subparagraph 4 (3) (a) of the said Order.

Televisions.

72.—The duty of excise on televisions imposed by paragraph 5 (1) of the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 (S.I. No. 57 of 1979), shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in the Sixth Schedule to this Act in lieu of the several rates specified in the Table in paragraph 5 (2) of the said Order.

Gramophone records.

73.—The duty of excise on gramophone records imposed by paragraph 5 (1) of the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 (S.I. No. 57 of 1979), shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of an amount equal to 40 per cent. of the chargeable value in lieu of the rate specified in paragraph 5 (2) (b) of the said Order.

Gaming machine licences.

74.—(1) In lieu of the duty of excise imposed by section 43 (6) of the Finance Act, 1975 , there shall be charged, levied and paid, as on and from the 28th day of February, 1980, on the grant of a gaming machine licence a duty of excise at whichever of the following rates is appropriate having regard to the period for which the licence is to remain in force, that is to say, where the period for which the licence is to remain in force—

(a) does not exceed three months, £25 for each gaming machine to which the licence relates,

(b) exceeds three months but does not exceed six months, £50 for each gaming machine to which the licence relates,

(c) exceeds six months but does not exceed nine months, £75 for each gaming machine to which the licence relates.

(d) exceeds nine months, £100 for each gaming machine to which the licence relates.

(2) Section 43 of the said Finance Act. 1975, shall be amended by the insertion of the following paragraphs after paragraph (a) of subsection (7):

“(aa) A gaming machine licence granted on or after the 28th day of February, 1980, may, pursuant to a request contained in the application therefor, be expressed to relate only to Saturdays, Sundays and holidays in the period specified in the licence for which it is to remain in force and, where a licence is so expressed—

(i) the duty of excise imposed by the subsection (6) of this section shall, as on and from the 28th day of February, 1980, be charged, levied and paid on the grant of the licence at whichever of the following rates is appropriate having regard to the period for which the licence is to remain in force, that is to say, where the period for which the licence is to remain in force—

(A) does not exceed three months, £16.50 for each gaming machine to which the licence relates,

(B) exceeds three months but does not exceed six months, £33 for each gaming machine to which the licence relates,

(C) exceeds six months but does not exceed nine months, £49.50 for each gaming machine to which the licence relates,

(D) exceeds nine months, £66 for each gaming machine to which the licence relates,

(ii) the licence shall be deemed, for the purposes of subsections (3) and (10) (b) of this section, not to be in force on days in the period aforesaid other than Saturdays, Sundays and holidays.

(aaa) Paragraph (a) of this subsection shall not apply or have effect in relation to gaming machine licences granted on or after the 28th day of February, 1980.”.

Mechanical lighters.

75.—(1) In this section—

“mechanical lighter” means any mechanical, chemical, electrical or similar article of a portable nature which is complete or substantially complete and is intended to provide a means of ignition whether by spark, flame or otherwise;

“licensed manufacturer” means a manufacturer who is the holder of a licence for the time being in force under subsection (5) (a) of this section;

“manufacture” means the making or assembling in the State of mechanical lighters and “manufacturer” shall be construed accordingly.

(2) (a) There shall be charged, levied and paid on mechanical lighters which are manufactured in the State and sent out from the premises of a manufacturer, and on mechanical lighters which are imported into the State, on and from the 28th day of February, 1980, a duty of excise at the rate of £0.20 for each lighter.

(b) The duty of excise imposed by paragraph (a) of this subsection shall not be charged, levied or paid on any mechanical lighter which is shown to the satisfaction of the Revenue Commissioners to be constructed solely for the purposes of igniting gas for domestic use.

(3) The Revenue Commissioners may, subject to compliance with such conditions for securing payment of the duty as they may think fit to impose, permit payment of the duty imposed by this section to be deferred to a day not later than the fifteenth day of the month following that in which the said duty is charged.

(4) The Revenue Commissioners may, subject to compliance with such conditions as they may think fit to impose—

(a) repay or remit the duty imposed by this section on mechanical lighters that are shown to their satisfaction—

(i) to have been destroyed or become unfit for use by unavoidable accident before removal from a licensed manufacturer's premises, or

(ii) to have been received back, prior to use, at the place of manufacture as being defective, or to have been received back, after use, at the place of manufacture for repair and are, in either case, subsequently redelivered, exported or destroyed under arrangements approved of by them,

(b) authorise the removal from the premises of a licensed manufacturer without payment of excise duty of mechanical lighters for exportation or shipment as stores or for warehousing for exportation or shipment as stores.

(5) (a) A person shall not manufacture mechanical lighters unless he is the holder of a licence issued under this subsection and has entered the premises to which the licence relates under paragraph (b) of this subsection.

(b) A licensed manufacturer shall make proper entry with the proper officer of Customs and Excise in accordance with the provisions of regulations under subsection (6) of this section of all premises intended to be used by him in the carrying on of his business as a manufacturer.

(c) An officer of Customs and Excise may, at all reasonable times, enter premises on which the manufacture of mechanical lighters is reasonably believed by the officer to be carried on and may there make such search and investigation and take such samples of mechanical lighters and partially manufactured mechanical lighters as the officer shall think proper, and may inspect and take copies of or extracts from any books or other documents there found reasonably believed by the officer to relate to the manufacture of mechanical lighters.

(d) Any person who resists, obstructs or impedes an officer of Customs and Excise in the exercise of any power conferred on him by this subsection shall be guilty of an offence and shall be liable on conviction to an excise penalty of £500.

(6) (a) The Revenue Commissioners may make regulations for the purpose of giving full effect to the provisions of this section.

(b) In particular, but without prejudice to the generality of paragraph (a) of this subsection, regulations under this subsection may—

(i) govern the importation, manufacture, storage and removal from storage of mechanical lighters,

(ii) prescribe the method of charging, securing and collecting the duty imposed by this section,

(iii) make provision in relation to the form, grant, duration and revocation of licences under subsection (5) of this section,

(iv) provide for the method of entry with the proper officer of Customs and Excise under subsection (5) (b) of this section,

(v) require a licensed manufacturer to keep in a specified manner, and to preserve for a specified period, such accounts and records relating to the purchase, receipt, sale, disposal or manufacture by him of mechanical lighters or parts thereof as may be specified and to keep for a specified period any other books or documents relating to any of the matters aforesaid and to allow an officer of Customs and Excise to inspect and take copies of such accounts and records and of any other books or documents kept by him relating to any of the matters aforesaid,

(vi) require a licensed manufacturer to furnish, at such times and in such form as may be specified, returns in relation to such matters as may be specified,

(vii) provide for the removal to and receipt by licensed manufacturers of mechanical lighters imported into or manufactured in the State without payment of the excise duty chargeable thereon.

(7) Where an officer of Customs and Excise finds that the number of mechanical lighters in the stock or possession of a licensed manufacturer is less than the recorded number which, according to records or other documents required to be kept by him in pursuance of regulations under subsection (6) of this section, ought to be in his stock or possession, then, except insofar as the deficiency is explained to the satisfaction of the Revenue Commissioners, mechanical lighters to the number of the deficiency shall be deemed to have been sent out for home use from the premises of the licensed manufacturer on the day on which the deficiency first came to the notice of the officer.

(8) Any person who contravenes or fails to comply with any of the provisions of this section or of regulations under subsection (6) of this section shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £500 and any articles in respect of which the offence was committed shall be liable to forfeiture.

(9) (a) The provisions of the Customs Acts and of any instrument relating to duties of customs made under statute shall, with any necessary modifications, apply in relation to the duty imposed by this section on mechanical lighters imported into the State as they apply in relation to duties of customs.

(b) The provisions of the statutes which relate to the duties of excise and the management thereof and of any instrument relating to duties of excise made under statute shall, with any necessary modifications, apply in relation to the duty imposed by this section on mechanical lighters manufactured in the State as they apply to duties of excise.

(c) Where in relation to the duty of excise imposed by this section there is a provision in this section corresponding to provision of the Customs Acts or of any instrument relating to duties of customs made under statute (insofar as imported goods are concerned) or to a provision of the statutes which relate to the duties of excise or of any instrument relating to the duties of excise made under statute (insofar as goods manufactured in the State are concerned), the latter provisions shall not apply in relation to the duty of excise imposed by this section.

(10) The duty of excise imposed by this section is hereby placed under the care and management of the Revenue Commissioners.

(11) This section, so far as it relates to the duty of excise imposed by this section on dutiable goods imported into the State, shall be construed together with the Customs Acts and, so far as it relates to the duty of excise imposed by this section on dutiable goods manufactured in the State, shall be construed together with the statutes which relate to the duties of excise and the management of those duties.

Increase of duties on certain intoxicating liquor licences.

76.—(1) The duties of excise imposed by section 43 of the Finance (1909-10) Act, 1910 , on the licences for the manufacture or sale of intoxicating liquor specified in the First Schedule to that Act and the duty of excise imposed by section 10 (3) of the Finance Act, 1940 , on a licence to be taken out annually by every person who makes cider or perry for sale shall, as respects any such licence granted on or after the 1st day of July, 1980, in respect of periods expiring on days subsequent to the 30th day of September, 1980, be charged, levied and paid on each such licence at the rate specified in column (4) of Part I of the Seventh Schedule to this Act at the reference number at which that licence is mentioned in column (2) of that Schedule in lieu of the rate specified in the enactment mentioned in column (3) of the said Part I at that reference number; and no reduction, remission, abatement or repayment shall be allowed or made in respect of any such licence but any duty paid in error on any such licence may be repaid.

(2) Section 48 of the Finance (1909-10) Act, 1910 , is hereby amended by the substitution of the following provisos for the provisos to subsection (1) (inserted by section 17 (5) of the Finance Act, 1960 ):

“Provided that the duty payable in pursuance of this subsection shall not exceed £50 as respects any statement of purchases during the calendar year 1980, or any subsequent calendar year, or, in the case of a club which is discontinued on or after the date of the passing of this Act, as respects the statement of purchases up to the day of discontinuance, and

Provided also that the secretary of a club shall be deemed to have complied with the provisions of this section with regard to any particular period as aforesaid if he pays the sum of £50 to the proper officer of Customs and Excise in respect of that period”.

(3) Section 10 of the Intoxicating Liquor Act, 1927 , is hereby repealed as respects licences referred to in that section taken out or granted after the passing of this Act in respect of periods expiring on days subsequent to the 30th day of September, 1980.

Increase of duties on certain other licences.

77.—(1) In this section and in Part IV of the Seventh Schedule to this Act “licence” shall be construed as including permit and certificate.

(2) The duty of excise on a firearm certificate imposed by section 18 (2) of the Finance Act, 1964 , shall, in the case of any such certificate coming into force, whether by way of grant or renewal, on or after the 1st day of August, 1980, be charged, levied and paid at the rates specified in Part II of the Seventh Schedule to this Act in lieu of the rates specified in the Fifth Schedule to the Finance Act, 1966 , as amended by the Imposition of Duties (No. 199) (Excise Duties) (Firearms Certificates) Order, 1972 (S.I. No. 162 of 1972).

(3) The duty of excise imposed by section 17 of the Finance Act, 1956 , on gaming licences issued under section 19 of the Gaming and Lotteries Act, 1956 , shall be charged, levied and paid on such licences issued on or after the date of the passing of this Act at the rates specified in Part III of the Seventh Schedule to this Act in lieu of the rates specified in section 42 (2) of the Finance Act, 1975 .

(4) The duty of excise in respect of a licence mentioned in column (2) of Part IV of the Seventh Schedule to this Act at any reference number imposed by the enactment specified in column (3) of the said Part IV at that reference number shall be charged, levied and paid, as on and from the date specified in column (4) of the said Part IV at that reference number at the rate specified in column (5) of the said Part IV at that reference number in lieu of the rate specified in the said enactment.

(5) The duty of excise on Refreshment House licences, imposed by section 1 of the Refreshment Houses (Ireland) Act, 1860 , shall be charged, levied and paid, as on and from the 1st day of April, 1981, at the rate of £50 in lieu of the several rates specified in section 9 of the Revenue (No. 2) Act, 1861 .

(6) No reduction, remission, abatement or repayment of duty shall be allowed or made in respect of any licence to which this section or section 74 of this Act relates provided that any duty which has been paid in error may be repaid.

Excise duty on public dancing license, occasional licence, special exemption order and authorisation to a club.

78.—(1) In this section “licence” includes order and authorisation.

(2) There shall be charged, levied and paid on every public dancing licence granted under section 2 of the Public Dance Halls Act, 1935 , a duty of excise of—

(3) There shall be charged, levied and paid on every occasional licence granted under section 11 or 13 of the Intoxicating Liquor Act, 1962 , a duty of excise of £25.

(4) There shall be charged, levied and paid on every special exemption order granted under section 5 of the Intoxicating Liquor Act, 1927 , or section 13 of the Intoxicating Liquor Act, 1962 , a duty of excise of £25.

(5) There shall be charged, levied and paid on every authorisation granted to a club under section 21 of the Intoxicating Liquor (General) Act, 1924 , or section 14 of the Intoxicating Liquor Act, 1962 , a duty of excise of £25.

(6) The duty imposed by this section on a licence shall be paid and collected by means of stamps equal in value to the amount of such duty impressed on or affixed to the notice in writing of the application for the licence given to the appropriate District Court Clerk and the Stamp Duties Management Act, 1891, shall apply to such duty and stamps.

(7) Notwithstanding anything to the contrary contained in any Act, a licence which is liable to a duty imposed by this section shall not be granted unless the notice in writing referred to in subsection (6) of this section in relation to the application for the licence has been duly stamped in accordance with that subsection.

(8) Any amount paid in respect of a duty of excise under this section in relation to a licence may be repaid by the Revenue Commissioners—

(a) if the application for the licence is withdrawn before the determination of the court proceedings in relation to it,

(b) if the licence is not granted, or

(c) if the amount is paid in error.

(9) This section shall have effect in relation to licences granted on or after the date of the passing of this Act in respect of dates subsequent to the 30th day of September, 1980.

Confirmation of Orders.

79.—The Orders mentioned in the Table to this section are hereby confirmed—

TABLE