Finance Act, 1983

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Number 15 of 1983

FINANCE ACT, 1983

ARRANGEMENT OF SECTIONS

PART I

Income Tax, Income Levy, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Chapter II

Taxation of Farming Profits

Chapter III

Income Levy

Chapter IV

Anti-avoidance and Anti-evasion

Chapter V

Income Tax and Corporation Tax

Chapter VI

Corporation Tax

Chapter VII

Advance Corporation Tax

Chapter VIII

Capital Gains Tax

PART II

Customs and Excise

PART III

Value-Added Tax

PART IV

Stamp Duties

PART V

Revenue Offences

PART VI

Residential Property Tax

PART VII

Miscellaneous

FIRST SCHEDULE

Rates of Excise Duty on Televisions

SECOND SCHEDULE

Rates of Excise Duty on Gaming Licences

THIRD SCHEDULE

Rates of Excise Duty on Firearm Certificates

FOURTH SCHEDULE

Enactments Repealed

Number 15 of 1983

FINANCE ACT, 1983

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. [8th June, 1983]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Income Tax, Income Levy, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Amendment of section 1 (exemption from income tax) of Finance Act, 1980.

1.— Section 1 of the Finance Act, 1980 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, by the substitution in subsection (2) of “£4,800” for “£4,400” (inserted by the Finance Act, 1982 ) and of “£2,400” for “£2,200” (inserted by the Finance Act, 1982 ), and the said subsection (2), as so amended, is set out in the Table to this section.

TABLE

(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 , £4,800, and

(b) in any other case, £2,400.

Alteration of rates of income tax.

2.— Section 8 of the Finance Act, 1980 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, by the substitution of the following Table for the Table to the said section:

“TABLE

PART I

PART II

”

Maintenance in the case of separated spouses.

3.—(1) (a) (i) In this section—

“maintenance arrangement” means an order of a court, rule of court, deed of separation, trust, covenant, agreement, arrangement, or any other act, giving rise to a legally enforceable obligation and made or done in consideration or in consequence of the dissolution or annulment of a marriage or of such separation of the parties to a marriage as is referred to in section 192 (1) (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , and a maintenance arrangement relates to the marriage in consideration or in consequence of the dissolution or annulment of which or of the separation of the parties to which the maintenance arrangement was made or arises;

“payment” means a payment or part of a payment, as the case may be.

(ii) A reference in this section to a child of a person includes a child in respect of whom the person was, at any time before the making of the maintenance arrangement concerned, entitled to a deduction under section 141 of the Income Tax Act, 1967 .

(b) (i) This section applies to payments made, directly or indirectly, by a party to a marriage under or pursuant to a maintenance arrangement relating to the marriage for the benefit of a child of his, or for the benefit of the other party to the marriage, being payments—

(I) which are made at a time on or after the passing of this Act when the wife is not living with the husband,

(II) the making of which is legally enforceable, and

(III) which are annual or periodical:

Provided that this section shall not apply to such payments made under a maintenance arrangement made before the passing of this Act unless and until such time as one of the following events occurs, or the earlier of such events occurs where both occur, that is to say—

(A) the maintenance arrangement is replaced by another maintenance arrangement or varied,

(B) both parties to the marriage to which the maintenance arrangement relates, by notice in writing to the inspector, jointly elect that this section shall apply,

and where such an event occurs in either of the circumstances aforesaid, this section shall apply to all such payments made after the date on which it occurs.

(ii) For the purposes of this section and of section 4 , a payment, whether conditional or not, which is made, directly or indirectly, by a party to a marriage under or pursuant to a maintenance arrangement relating to the marriage (other than a payment of which the amount, or the method of calculating the amount, is specified in the maintenance arrangement and from which, or from the consideration for which, neither a child of the party to the marriage making the payment nor the other party to the marriage derives any benefit) shall be deemed to be made for the benefit of the other party to the marriage:

Provided that, where the payment, in accordance with the maintenance arrangement, is made or directed to be made for the use and benefit of a child of the party to the marriage making the payment, or for the maintenance, support, education or other benefit of such a child, or in trust for such a child, and the amount, or the method of calculating the amount, of such payment so made or directed to be made is specified in the maintenance arrangement, the said payment shall be deemed to be made for the benefit of such child, and not for the benefit of any other person.

(2) Notwithstanding anything contained in the Income Tax Acts, but subject to section 4 , as respects any payment to which this section applies which is made directly or indirectly by one party to the marriage to which the maintenance arrangement concerned relates for the benefit of the other party to the marriage—

(a) the person making the payment shall not be entitled, on making the payment, to deduct and retain thereout any sum representing any amount of income tax thereon,

(b) the payment shall be deemed for all purposes of the Income Tax Acts to be profits or gains arising to the said other party to the marriage and income tax shall be charged on that other party under Case IV of Schedule D in respect of those profits or gains, and

(c) the party to the marriage by whom the payment is made, having made a claim in that behalf in the manner prescribed by the Income Tax Acts, shall be entitled for all purposes of the Income Tax Acts to deduct the payment in computing his total income for the year of assessment in which the payment is made.

(3) Notwithstanding anything in the Income Tax Acts, as respects any payment to which this section applies which is made directly or indirectly by a party to the marriage to which the maintenance arrangement concerned relates for the benefit of any child of his—

(a) the person making the payment shall not be entitled on making the payment, to deduct and retain thereout any sum representing any amount of income tax thereon,

(b) the payment shall be deemed for all purposes of the Income Tax Acts not to be income of the child,

(c) the total income for any year of assessment of the party to the marriage who makes the payment shall be computed for all purposes of the Income Tax Acts as if the payment had not been made, and

(d) for the purposes of section 141 (6) of the Income Tax Act, 1967 , the payment shall be deemed to be an amount expended on the maintenance of the child by the party to the marriage who makes the payment and, notwithstanding that the payment is made to the other party to the marriage to be applied for or towards the maintenance of the child and is so applied, it shall be deemed for the aforementioned purposes not to be an amount expended by that other party on the maintenance of the child.

(4) (a) The provisions of sections 146 and 149 of the Income Tax Act, 1967 , shall apply to a deduction under subsection (2) (c) as they apply to any allowance, deduction or relief under sections 138 to 145 of that Act.

(b) The provisions of Schedule 4 to the Income Tax Act, 1967 , and of paragraph IX of Schedule 18 to that Act shall, with any necessary modifications, apply in relation to a deduction under subsection (2) (c).

Separated spouses: adaptation of special provisions as to married persons.

4.—(1) Where a payment to which section 3 applies is made in a year of assessment by a party to a marriage (being a marriage which has not been dissolved or annulled) and both parties to the marriage are resident in the State for that year, section 195 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , shall have effect in relation to the parties to the marriage for that year of assessment as if—

(a) in subsection (1), “, where the wife is living with the husband,” were deleted, and

(b) subsection (4) were deleted.

(2) Where, by virtue of subsection (1), the parties to a marriage elect as provided for in section 195 (1) of the Income Tax Act, 1967 , then, as respects any year of assessment for which the election has effect—

(a) subject to subsection (1) and paragraphs (b) and (c), all the provisions of the Income Tax Acts shall apply in the case of the parties to the marriage as they apply in the case of a husband and wife who have elected under the said section 195 (1) and whose election has effect for that year of assessment,

(b) the total income or incomes of the parties to the marriage shall be computed for all purposes of the Income Tax Acts as if any payments to which section 3 applies made in that year of assessment by one party to the marriage for the benefit of the other party to the marriage had not been made, and

(c) income tax shall be assessed, charged and recovered on the total income or incomes of the parties to the marriage as if an application under section 197 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , had been made by one of the parties and that application had effect for that year of assessment.

Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982.

5.— Section 6 of the Finance Act, 1982 , shall have effect, for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1983-84, as if in subsection (2)—

(a) “1983-84” were substituted for “1982-83”, and

(b) “£286” were substituted for “£312”, in each place where it occurs.

Amendment of Part IX (special provisions relating to year of marriage) of Income Tax Act, 1967.

6.— Part IX of the Income Tax Act, 1967 , is hereby amended in Chapter I (inserted by the Finance Act, 1980 ) by the insertion after section 195 of the following section:

“Special provisions relating to year of marriage.

195A.—(1) In this section—

‘income tax month’ has the meaning assigned to it by section 124;

‘year of marriage’, in relation to a husband and his wife, means the year of assessment in which their marriage took place.

(2) Section 195 shall not apply or have effect in relation to a husband and his wife for the year of marriage.

(3) Where, on making a claim in that behalf, a husband and his wife prove that the amount equal to the aggregate of the tax paid and payable by the husband on his total income for the year of marriage and the tax paid and payable by his wife on her total income for the year of marriage is in excess of the tax which would have been payable by the husband on his total income and the total income of his wife for the year of marriage if—

(a) he had been charged to tax for the year of marriage in accordance with section 194, and

(b) he and his wife had been married to each other throughout the year of marriage,

they shall be entitled, subject to subsection (4), to repayment of tax of an amount determined by the formula—

Where—

A is the amount of the aforementioned excess, and

B is the number of income tax months in the period between the date on which the marriage took place and the end of the year of marriage, part of an income tax month being treated for this purpose as an income tax month in a case where the period consists of part of an income tax month or of one or more income tax months and part of an income tax month.

(4) Any repayment of tax under subsection (3) shall be allocated to the husband and to the wife concerned in proportion to the amounts of tax paid and payable by them, having regard to subsection (2), on their respective total incomes for the year of marriage.

(5) Any claim for a repayment of tax under the provisions of subsection (3) shall be made in writing to the inspector after the end of the year of marriage and shall be made by the husband and wife concerned jointly.

(6) All such provisions of the Income Tax Acts as apply in relation to deductions specified in sections 138 to 143 shall apply in relation to any repayment of tax under this section.

(7) This section shall have effect in relation to tax for the year 1983-84 and subsequent years of assessment.”.

Cesser of Part XX (relief to investors in Irish securities) of Income Tax Act, 1967.

7.—Part XX of the Income Tax Act, 1967 , shall not apply or have effect in relation to any distribution or payment of interest referred to in that Part that is made on or after the 9th day of February, 1983.

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

8.— Section 344 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment—

(a) by the substitution in subsection (1) (inserted by the Finance Act, 1980 ) of “£120” for “£150”, in each place where it occurs, and of “£50” for “£70”,

(b) by the substitution in subsection (2) (inserted by the Finance Act, 1980 ) of “£120” for “£150” and of “£50” for “£70”, and

(c) by the substitution in subsection (4) of the following definition for the definition of “the commercial banks”:

“‘the commercial banks’ means Allied Irish Banks Limited, the Bank of Ireland, the Northern Bank Limited, the Ulster Bank Limited, Ansbacher & Company Limited, Barclays Commercial Bank Limited, Guinness & Mahon Limited, Chase Bank (Ireland) Limited and the Agricultural Credit Corporation, Limited;”,

and the said subsections (1) and (2), as so amended, are set out in the Table to this section.

TABLE

(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), £120, or

(ii) in the case of sums representing interest on deposits mentioned in paragraph (b), £50:

Provided that the total sums to be so disregarded shall not exceed £120:

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 £120 or £50, 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 Part XXVI (appeals) of Income Tax Act, 1967.

9.—Part XXVI of the Income Tax Act, 1967 , is hereby amended—

(a) as respects appeals against assessments made after the passing of this Act—

(i) in section 416—

(I) by the substitution of the following subsection for subsection (6):

“(6) (a) In default of notice of appeal by a person to whom notice of assessment has been given the assessment made on him shall be final and conclusive.

(b) Where a person who has given notice of appeal against an assessment does not attend before the Appeal Commissioners at the time and place appointed for the hearing of his appeal, the assessment made on him shall, subject to subsection (8), have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given.

(c) Where on the hearing of an appeal against an assessment—

(i) no application is or has been made to the Appeal Commissioners before or during the hearing of the appeal by or on behalf of the appellant for an adjournment of the proceedings on the appeal or such an application is or has been made and is or was refused (but such an application shall not be refused before the expiration of a period of 9 months from the end of the year of assessment to which the assessment appealed against relates or from the date on which the notice of the assessment was given to the appellant, whichever is the earlier) and

(ii) (A) a return of his income for the relevant year of assessment has not been made by the appellant, or

(B) such a return has been made but all the statements of profits and gains, schedules and other evidence relating to such return have not been furnished by or on behalf of the appellant,

the Appeal Commissioners shall make an order dismissing the appeal against the assessment and thereupon the assessment shall have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given:

Provided that this paragraph shall not apply if, on the hearing of the appeal, the Appeal Commissioners are satisfied that sufficient information has been furnished by or on behalf of the appellant to enable them to determine the appeal at that hearing.”,

(II) in subsection (7)—

(A) by the insertion in paragraph (a) after “behalf” of “within 12 months after the date of the notice of assessment”, and

(B) by the insertion of the following paragraphs after paragraph (c):

“(d) Notwithstanding the provisions of paragraph (a), an application made after the expiration of the time specified in that paragraph which, but for that expiration, would have been allowed under the said paragraph (a) may be allowed under that paragraph if at the time of the application—

(i) there has been submitted to the inspector or other officer a return of income, statements of profits and gains and such other information as in his opinion would enable the appeal to be settled by agreement under subsection (3), and

(ii) the tax charged by the assessment in respect of which the application is made has been paid together with any interest thereon chargeable under the provisions of section 550.

(e) If on an application referred to in paragraph (d) the inspector or other officer is not satisfied that the information submitted would be sufficient to enable the appeal to be settled by agreement under subsection (3) or if the tax and interest mentioned in paragraph (d) (ii) have not been paid, he shall by notice in writing inform the applicant that his application has been refused.

(f) Within 15 days after the date of a notice under paragraph (e) the applicant may by notice in writing require the inspector or other officer to refer his application to the Appeal Commissioners and, in relation to an application so referred, if—

(i) the application is one which, but for the expiration of the period specified in paragraph (a), would have been allowed under paragraph (c) if the application had been referred to the Appeal Commissioners under that paragraph,

(ii) at the time the application is referred to the Appeal Commissioners the tax charged by the assessment in respect of which the application is made, together with any interest thereon chargeable under section 550, has been paid, and

(iii) the information submitted to the inspector or other officer is such that in the opinion of the Appeal Commissioners the appeal is likely to be determined on the first occasion on which it comes before them for hearing,

the Appeal Commissioners may allow the application.

(g) Where an application in relation to an appeal against an assessment has been allowed under paragraph (d) or (f) and an overpayment of tax arises by reason of the determination of the appeal, the provisions of section 30 (4) of the Finance Act, 1976 , shall not apply to the amount or amounts giving rise to the overpayment.”,

(III) in subsection (8), by the insertion before “subsection (6)” of “paragraph (b) of”,

(IV) by the deletion of subsection (8A) (inserted by the Finance Act, 1968 ), and

(V) in subsection (9), by the deletion in paragraph (a) of “unless the Revenue Commissioners otherwise direct”,

(ii) in section 421, by the insertion of the following subsection after subsection (6):

“(7) Every determination of an appeal by the Commissioners shall be recorded by them in the prescribed form at the time the determination is made and the Commissioners shall, within 10 days after the determination, transmit that form to the inspector or other officer.”,

(iii) in section 428, by the substitution in subsection (3) of “£20” for “twenty shillings”,

(iv) in section 429, by the insertion of the following subsection after subsection (1):

“(1A) At or before the time of the rehearing of the appeal by the said judge the inspector or other officer shall transmit to the judge the prescribed form in which the Appeal Commissioners' determination of the appeal is recorded.”,

and

(v) in section 430, by the insertion in subsection (1) after “Commissioners” of “and any case stated by a judge pursuant to the said section 428 shall set forth the facts, the determination of the Appeal Commissioners and the determination of the judge”,

and

(b) as respects every hearing after the passing of this Act by the High Court or Supreme Court of a case stated under section 428 or 430—

(i) in section 416 (10), by the deletion of “, and every hearing by the High Court or the Supreme Court of a case stated under section 428 or 430 shall, if the person whose chargeability to tax is the subject of the case stated so desires, be held in camera”, and

(ii) by the deletion of section 420,

and the said subsections (7)(a), (8), (9)(a) and (10) of section 416, the said subsection (3) of section 428 and the said subsection (1) of section 430, as so amended, are set out in the Table to this section.

TABLE

(7) (a) A notice of appeal not given within the time limited by subsection (1) shall be regarded as having been so given where, on an application in writing having been made to him in that behalf within 12 months after the date of the notice of assessment, the inspector or such other officer as aforesaid, being satisfied that, owing to absence, sickness or other reasonable cause, the applicant was prevented from giving notice of appeal within the time limited and that the application was made thereafter without unreasonable delay, notifies the applicant in writing that his application has been allowed.

(8) In a case in which a person who has given notice of appeal does not attend before the Appeal Commissioners at the time and place appointed for the hearing of his appeal, paragraph (b) of subsection (6) shall not have effect if—

(a) at the said time and place another person attends on behalf of the appellant and the Appeal Commissioners consent to hear that person, or

(b) on an application in that behalf having been made to them in writing or otherwise at or before the said time, the Appeal Commissioners postpone the hearing, or

(c) on an application in writing having been made to them after the said time the Appeal Commissioners being satisfied that, owing to absence, sickness or other reasonable cause, the appellant was prevented from appearing before them at the said time and place and that the application was made without unreasonable delay, direct that the appeal be treated as one the time for the hearing of which has not yet been appointed.

(9) (a) Where action for the recovery of tax charged by an assessment, being action by way of the institution of proceedings in any court or the issue of a certificate under section 485 has been taken, neither subsection (7) nor subsection (8) shall apply in relation to that assessment until the said action has been completed.

(10) Every rehearing of an appeal by the Circuit Court under section 429 shall be held in camera.

(3) The party requiring the case shall pay to the Clerk to the Commissioners a fee of £20 for and in respect of the same, before he is entitled to have the case stated.

(1) Section 428 shall, subject to the provisions of this section, apply to a determination given by a judge pursuant to section 429 in like manner as it applies to a determination by the Appeal Commissioners and any case stated by a judge pursuant to the said section 428 shall set forth the facts, the determination of the Appeal Commissioners and the determination of the judge.

Amendment of section 496 (repayment for interest paid to banks, discount houses, etc.) of Income Tax Act, 1967.

10.— Section 496 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, in subsection (2A) (inserted by the Finance Act, 1980 )—

(a) by the substitution of “the 6th day of April, 1983” for “the 6th day of April, 1980”, and

(b) by the substitution of “£4,000” for “£4,800”, of “£2,900” for “£3,500” and of “£2,000” for “£2,400”,

and the said subsection (2A), as so amended, is set out in the Table to this section.

TABLE

(2A) In relation to any interest paid in respect of any period beginning on or after the 6th day of April, 1983, 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 £4,000,

(b) in the case of a widowed person, on the excess of the interest over £2,900, or

(c) in any other case, on the excess of the interest over £2,000.

Chapter II

Taxation of Farming Profits

Charge of farming profits under Schedule D.

11.— Part I of the Finance Act, 1974 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, by the substitution for section 15 of the following section:

“Farming profits to be charged under Schedule D.

15.—(1) All farming in the State shall be treated as the carrying on of a trade or, as the case may be, of part of a trade, and the profits or gains thereof shall be charged to tax under Case I of Schedule D accordingly.

(2) Notwithstanding anything to the contrary in Chapter III of Part IV of the Income Tax Act, 1967 , all farming carried on by any person whether solely or in partnership shall be treated as the carrying on of a single trade:

Provided that this subsection shall not prejudice or restrict the operation of section 58 of the Income Tax Act, 1967 , where a partnership trade of farming is set up and commenced or is permanently discontinued.”.

Application for 1983-84 of section 20A (optional basis of assessment) of Finance Act, 1974.

12.—Section 20A (inserted by the Finance Act, 1978 ) of the Finance Act, 1974 , shall have effect for the year 1983-84 as if—

(a) in paragraph (a)—

(i) “1983-84” were substituted for “1978-79” in each place where it occurs,

(ii) “ section 15 of the Finance Act, 1974 (inserted by section 11 of the Finance Act, 1983)” were substituted for “ section 13 of the Finance Act, 1978 ” in subparagraph (ii), and

(iii) “1983” were substituted for “1978” in subparagraph (II),

and

(b) in paragraph (b), “1983-84” were substituted for “1978-79” in each place where it occurs.

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

13.— Section 13 (1) of the Finance Act, 1982 , is hereby amended by the substitution of “1982-83 or any subsequent year of assessment” for “1982-83”, and the said section 13 (1), as so amended, is set out in the Table to this section.

TABLE

(1) Where, in computing profits from the trade of farming for an accounting period, a deduction allowed by virtue of section 12 of the Finance Act, 1976 , has effect for the year 1982-83 or any subsequent year of assessment—

(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 “less 20 per cent. of its trading profits for that period” were deleted,

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

and

(c) the amount of the said deduction shall, subject to the provisions of subparagraph (i) of the said section 31 (4) (a), be eleven-tenths of the amount of the deduction for that accounting period computed in accordance with paragraphs (a) and (b) of this subsection.

Amendment of section 307 (relief for losses) of Income Tax Act, 1967.

14.— Section 307 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, by the substitution of the following subsection for subsection (1A) (inserted by the Finance Act, 1974 ):

“(1A) This section applies in any case where farming is carried on other than in the case of an individual who has sustained a loss in the carrying on of farming and who is not chargeable to tax in respect of profits or gains from farming for the year of assessment in which the loss is sustained.”.

Amendment of section 22 (farm buildings: capital allowances) of Finance Act, 1974.

15.— Section 22 (inserted by the Corporation Tax Act, 1976 ) of the Finance Act, 1974 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment,—

(a) in subsection (1), by the substitution of “section 15” for “section 15(1)”, and

(b) by the substitution of the following subsection for subsection (2B):

“(2B) Where, for any year of assessment, an individual is not chargeable to tax in respect of profits or gains from farming in accordance with the provisions of section 58 of the Income Tax Act, 1967 , and that year is a year of assessment in respect of which, if he had been so chargeable, he could have claimed a farm buildings allowance under this section, that allowance shall, for the purposes of this section, be deemed to have been made for that year of assessment and shall not be carried forward and set off against profits or gains chargeable for any subsequent year of assessment.”,

and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

(1) This section applies to any person carrying on farming, the profits or gains of which are chargeable to tax in accordance with the provisions of section 15.

Chapter III

Income Levy

Income levy.

16.—(1) With effect from the 6th day of April, 1983, there shall be paid, subject to and in accordance with the provisions of subsection (2), by or in respect of an individual who is over the age of sixteen years, a levy (which shall be known as “income levy”).

(2) The provisions of—

(a) sections 1 , 16 to 18 , 20 to 23 , 25 , 26 , 27 (2), 28 and 30 of the Youth Employment Agency Act, 1981 (referred to in this subsection as “the Act”), and

(b) the Youth Employment Levy Regulations, 1982 (S.I. No. 84 of 1982), and the Youth Employment Levy (Amendment) Regulations, 1983 (S.I. No. 52 of 1983), (referred to in this subsection as “the Regulations”),

shall, with the following modifications and with any other necessary modifications, apply in relation to income levy as they apply in relation to Youth Employment Levy—

(i) in section 1(1) of the Act, the definition of “the Agency” shall be deleted,

(ii) in sections 16, 17 and 18 of the Act, references to an individual referred to in section 15 of the Act shall be construed as references to an individual mentioned in subsection (1) of this section,

(iii) references in the Act and in the Regulations (other than Regulation 21 of the Youth Employment Levy Regulations, 1982) to the Minister for Labour shall be construed as references to the Revenue Commissioners,

(iv) references in the Act and in the Regulations to Youth Employment Levy shall be construed as references to income levy,

(v) references in the Act and in the Regulations to a contribution year shall be construed as references to the year beginning on the 6th day of April, 1983, and ending on the 5th day of April, 1984, and

(vi) in Regulation 21 of the Youth Employment Levy Regulations, 1982, the reference to the Minister for Labour shall be construed as a reference to the Collector-General, and Regulation 22 of those Regulations shall be deleted.

Chapter IV

Anti-avoidance and Anti-evasion

Amendment of section 175 (power to obtain information as to interest paid or credited without deduction of tax) of Income Tax Act, 1967.

17.—For the purpose of preventing the evading by persons ordinarily resident in the State of liability to tax—

(a) by the placing of money on deposit with different branches or offices maintained by or in connection with a trade or business in the ordinary course of which interest becomes payable or creditable in respect of that money and which is carried on by a person who is required by notice from the inspector given under section 175 of the Income Tax Act, 1967 , to make a return of interest paid or credited by him in respect of money received or retained by him, or

(b) by the making of false declarations under subsection (4) of the said section 175,

it is hereby enacted as follows:—

(1) Section 13 of the Finance Act, 1968 , shall not apply or have effect, in relation to any return of interest paid or credited referred to in the said section 175, where the return is of interest paid or credited during a year beginning on or after the 10th day of February, 1982.

(2) The said section 175 is hereby amended, as respects any interest paid or credited at any time after the passing of this Act—

(a) by the substitution in subsection (4) for “the person paying or crediting the interest shall not be required to include the interest in any such return.” of “the person paying or crediting the interest shall not be required to include the interest in any such return:

Provided that:

(i) if the person on whom the notice is served is not satisfied that the person who served the notice was ordinarily resident outside the State when the interest was paid or credited—

(A) there shall be given to the person on whom the notice is served an affidavit, made by the person who served the notice, stating his name and address and the country in which he was ordinarily resident when the interest was paid or credited, and

(B) if the person who served the notice was not beneficially entitled to that interest when it was paid or credited, the affidavit shall state, in addition to the particulars specified in paragraph (A), the name and address of the person who was so entitled and the country in which he was ordinarily resident when the interest was paid or credited, and

(ii) if the person on whom the notice is served is satisfied that the person who served the notice was not ordinarily resident in the State when the interest was paid or credited and, if the latter person declares in the notice, or in a subsequent notice served on the person on whom the first-mentioned notice was served, that he was not beneficially entitled to the interest when it was paid or credited, he shall, if the person so entitled (hereafter referred to as the ‘beneficial owner’) is ordinarily resident in the State, state in one of the notices aforesaid, or in a subsequent notice served on the person on whom the first-mentioned notice was served, the name and address of the beneficial owner.”,

and

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

“(5) A person to whom subsection (1) applies—

(a) shall keep and retain any notice served upon him in accordance with subsection (4), and any affidavit that accompanied the notice, for a period of six years from the date of the service of the notice,

(b) shall, if requested in writing by the Revenue Commissioners to do so, inform the Revenue Commissioners, within the time specified in the request, whether a notice has been served upon him in accordance with subsection (4) by such person as is named, and whose address is stated, in the request, and

(c) shall, if requested in writing by the Revenue Commissioners to do so, furnish to the Revenue Commissioners, within the time specified in the request, such notice served upon him in accordance with subsection (4) as is specified in the request and the affidavit that accompanied that notice.”,

and the said subsection (4), as so amended, is set out in the Table to this subsection.

TABLE

(4) The foregoing provisions of this section shall apply to interest paid or credited on or at any time after the 6th day of April, 1962, and only to money received or retained in the State, and, if a person to whom any interest is paid or credited in respect of any money received or retained in the State by notice in writing served on the person paying or crediting the interest—

(a) declares that the person who was beneficially entitled to that interest when it was paid or credited was not then ordinarily resident in the State, and

(b) requests that the interest shall not be included in any return under this section,

the person paying or crediting the interest shall not be required to include the interest in any such return:

Provided that:

(i) if the person on whom the notice is served is not satisfied that the person who served the notice was ordinarily resident outside the State when the interest was paid or credited—

(A) there shall be given to the person on whom the notice is served an affidavit, made by the person who served the notice, stating his name and address and the country in which he was ordinarily resident when the interest was paid or credited, and

(B) if the person who served the notice was not beneficially entitled to that interest when it was paid or credited, the affidavit shall state, in addition to the particulars specified in paragraph (A), the name and address of the person who was so entitled and the country in which he was ordinarily resident when the interest was paid or credited, and

(ii) if the person on whom the notice is served is satisfied that the person who served the notice was not ordinarily resident in the State when the interest was paid or credited and, if the latter person declares in the notice, or in a subsequent notice served on the person on whom the first-mentioned notice was served, that he was not beneficially entitled to the interest when it was paid or credited, he shall, if the person so entitled (hereafter referred to as the “beneficial owner”) is ordinarily resident in the State, state in one of the notices aforesaid, or in a subsequent notice served on the person on whom the first-mentioned notice was served, the name and address of the beneficial owner.

Information to be furnished by financial institutions.

18.—(1) In this section—

“authorised officer” means an inspector or other officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section;

“books” means—

(a) bankers' books, within the meaning of the Bankers' Books Evidence Acts, 1879 and 1959, and

(b) records and documents of persons referred to in section 7 (4) of the Central Bank Act, 1971 ;

“financial institution” means—

(a) a person who holds or has held a licence under section 9 of the Central Bank Act, 1971 ,

and

(b) a person referred to in section 7 (4) of that Act;

“judge” means a judge of the High Court;

“person” (other than in the definition of “financial institution”) means an individual who is ordinarily resident in the State.

(2) Where—

(a) a person who, for the purposes of tax, has been duly required by an inspector to deliver a statement of the profits or gains arising to him from any trade or profession or to deliver to the inspector a return of income, fails to deliver that statement or that return to the inspector,

or

(b) the inspector is not satisfied with such a statement or return so delivered,

an authorised officer may, if he is of opinion that that person maintains or maintained an account or accounts, the existence of which has not been disclosed to the Revenue Commissioners, with a financial institution or that there is likely to be information in the books of that institution indicating that the said statement of profits or gains or the said return of income is false to a material extent, apply to a judge for an order requiring that financial institution to furnish the authorised officer—

(i) with full particulars of all accounts maintained by that person, either solely or jointly with any other person or persons, in that institution during a period not exceeding ten years immediately preceding the date of the application, and

(ii) with such information as may be specified in the order relating to the financial transactions of that person, being information recorded in the books of that institution which would be material in determining the correctness of the statement of profits or gains or the return of income delivered by that person or, in the event of failure to deliver such statement or return, would be material in determining the liability of that person to tax.

(3) Where the judge to whom an application is made under subsection (2) is satisfied that there are reasonable grounds for making the application, he may, subject to such conditions as he may consider proper and specify in the order, make an order requiring the financial institution to furnish the authorised officer with such particulars and information as may be specified in the order.

(4) Where a judge makes an order under this section, he may also, upon the application of the authorised officer concerned, make a further order prohibiting for such period as the judge may consider proper and specify in the order, any transfer of, or any dealing with, without the consent of the judge, any assets or moneys of the person to whom the order relates that are in the custody of the financial institution at the time the order is made.

(5) Every hearing of an application for an order under this section and of any appeal in connection therewith shall be held in camera.

Chargeability of certain profits or gains.

19.—(1) Profits or gains shall be chargeable to tax notwithstanding that at the time an assessment to tax in respect of those profits or gains was made—

(a) the source from which those profits or gains arose was not known to the inspector,

(b) the profits or gains were not known to him to have arisen wholly or partly from a lawful source or activity, or

(c) the profits or gains arose and were known to him to have arisen from an unlawful source or activity,

and any question whether those profits or gains arose wholly or partly from an unknown or unlawful source or activity shall be disregarded in determining the chargeability to tax of the said profits or gains.

(2) Notwithstanding anything in the Tax Acts, any profits or gains which are charged to tax by virtue of subsection (1)—

(a) shall be charged under Case IV of Schedule D, and

(b) shall be described in the assessment to tax concerned as “miscellaneous income”,

and the assessment shall not be discharged by the Appeal Commissioners or by a court by reason only of the fact that the income should, apart from this section, have been described in some other manner or by reason only of the fact that the profits or gains arose wholly or partly from an unknown or unlawful source or activity.

(3) In this section “tax” means income tax, corporation tax or corporation profits tax, as appropriate.

(4) This section shall apply and have effect in respect of assessments to tax made on or after the passing of this Act.

Return of property.

20.—(1) (a) In this section—

“asset” includes any interest in an asset;

“limited interest” means—

(i) an interest (other than a leasehold interest) for the duration of a life or lives or for a period certain; or

(ii) any other interest which is not an absolute interest;

“minor child” means a child who has not attained the age of 21 years on the specified date and who has not married on or before that date;

“prescribed” means prescribed by the Revenue Commissioners;

“property” includes interests and rights of any description, and, without prejudice to the generality of the foregoing, includes—

(i) in the case of a limited interest, the property in which the limited interest subsists or on which it is charged or secured or on which there exists a right to have it charged or secured,

(ii) an interest in expectancy,

(iii) an interest or share in a partnership, joint tenancy or estate of a deceased person,

(iv) stock or shares in a company which is in course of liquidation,

(v) an annuity, and

(vi) property comprised in a settlement which the person concerned is empowered to revoke;

“settlement” has the meaning assigned to it by section 447 of the Income Tax Act, 1967 ;

“specified date”, in relation to a notice under subsection (2), means the date specified in the notice;

“tax” means income tax.

(b) For the purposes of this section the cost of acquisition to a person of an asset shall include—

(i) the amount or value of the consideration, in money or money's worth, given by him or on his behalf for the acquisition of the asset, together with the incidental costs to him of the acquisition or, if the asset was not acquired by him, any expenditure incurred by him in providing the asset, and

(ii) the amount of any expenditure incurred on the asset by him or on his behalf for the purpose of enhancing the value of the asset, being expenditure reflected in the state or nature of the asset at the specified date and any expenditure incurred by him in establishing, preserving or defending his title to, or to a right over, the asset.

(2) Where, for the purposes of tax, a person delivers to an inspector a return of income and the inspector is not satisfied with that return of income, the inspector may require—

(a) that person, by notice in writing given to him, and

(b) where that person and his spouse are, for the year of assessment to which the return of income relates, treated as living together for the purpose of section 192 of the Income Tax Act, 1967 , his spouse, by notice in writing given to the spouse,

to deliver to the inspector, within the period specified in the notice or within such further period as the inspector may allow, a return in the prescribed form of property which on the date specified in the notice is relevant property in relation to that notice and that person or his spouse shall, if required by further notice or notices in writing by the inspector, deliver to the inspector within such time, not being less than 30 days, as may be specified in such further notice or notices, a statement verifying such return of property together with such evidence, statement or documents required by the inspector in respect of such property or in respect of any property which the inspector has reason to believe to form part of the relevant property.

(3) (a) Relevant property in relation to a notice under subsection (2) means where the person to whom the notice is given—

(i) is an individual and the return of income concerned relates to income in respect of which he is chargeable to tax otherwise than in a representative capacity or as a trustee, all the property to which that individual is beneficially entitled on the specified date,

(ii) is the spouse of an individual by whom the return of income concerned was delivered, all the property to which the said spouse is beneficially entitled on the specified date,

(iii) is a person chargeable to tax in a representative capacity and the return of income concerned relates to income of a person in respect of which he is so chargeable, all the property to which that last-mentioned person is beneficially entitled and which gives rise to income in respect of which the first-mentioned person is chargeable to tax in a representative capacity or is property in relation to which the first-mentioned person performs functions or duties in such a capacity on the specified date, and

(iv) is a person chargeable as a trustee of a trust and the return of income concerned relates to income of the trust, all the property comprised in the trust on the specified date.

(b) Property to which a minor child of an individual referred to in subparagraph (i) or (ii) of paragraph (a) is beneficially entitled shall be included in that individual's return under this section where—

(i) the said property at any time prior to its acquisition by the minor child was disposed of by that individual whether to the minor child or not, or

(ii) the consideration for the acquisition of the said property by the minor child was provided directly or indirectly by that individual.

(4) (a) A return under this section shall contain particulars of the relevant property, including in relation to each asset comprised therein—

(i) a full description,

(ii) its location on the specified date,

(iii) the cost of acquisition to the person beneficially entitled thereto,

(iv) the date of acquisition, and

(v) if it was acquired otherwise than through a bargain at arm's length, the name and address of the person from whom it was acquired and the consideration, if any, given to that person in respect of the acquisition.

(b) A return under this section shall, in the case of an interest which is not an absolute interest, contain particulars of the title under which the beneficial entitlement arises.

(c) A return under this section shall be signed by the person by whom it is to be delivered and shall include a declaration by that person that it is, to the best of his knowledge, information and belief, correct and complete.

(d) The Revenue Commissioners may require the declaration mentioned in paragraph (c) to be made on oath.

(5) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column 2 thereof of “Finance Act, 1983, section 20 ”.

Return by nominee holders of securities.

21.—(1) If, for any purpose of the Tax Acts, any person in whose name any securities are registered is so required by notice in writing given to him by an inspector, he shall, within the time specified in the notice, state whether or not he is the beneficial owner of the securities and, if he is not the beneficial owner of the securities or any of them, he shall furnish in respect of each person on whose behalf the securities are registered in his name—

(a) the name and address of such person,

(b) the nominal value of the securities so registered on behalf of the person and, in so far as the securities consist of shares in a company, the number and class of such shares, and

(c) the date on which each security was so registered in his name on behalf of the person.

(2) In this section “securities” includes—

(a) shares, stocks, bonds, debentures and debenture stock of a company (within the meaning of section 1 (5) of the Corporation Tax Act, 1976 ) and also any promissory note or other instrument evidencing indebtedness issued to a loan creditor (within the meaning of section 103 (7) of the Corporation Tax Act, 1976 ) of a company,

(b) securities created and issued by the Minister for Finance under the Central Fund (Permanent Provisions) Act, 1965 , or any other powers in that behalf him enabling, and any stock, debenture, debenture stock, certificate of charge, or other security, which is issued with the approval of the Minister for Finance given under any Act of the Oireachtas and in respect of which the payment of interest and the repayment of capital is guaranteed by the Minister for Finance under that Act, and

(c) securities of the government of any country or territory outside the State.

(3) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column 2 thereof of “Finance Act, 1983, section 21 ”.

Obligation to show tax reference number on receipts, etc.

22.—(1) In this section—

“business” means—

(a) a profession, or

(b) a trade consisting solely of the supply (which word has in this paragraph the same meaning as in the Value-Added Tax Acts, 1972 to 1983) of a service and includes, in the case of a trade part of which consists of the supply of a service, that part, and also includes, in the case of a trade the whole or part of which consists of the supply of a service which incorporates the supply of goods in the course of the supply of that service, that trade or that part, as the case may be;

“specified person”, in relation to a business, means—

(a) in case the business is carried on by an individual, that individual, and

(b) in case the business is carried on by a partnership, the precedent partner;

“tax reference number”, in relation to a specified person, means each of the following:

(a) the Revenue and Social Insurance (RSI) Number stated on any certificate of tax-free allowances issued to that person by an inspector, not being a certificate issued to an employer in respect of an employee of that employer,

(b) the reference number stated on any return of income form or notice of assessment issued to that person by an inspector, and

(c) the registration number of that person for the purposes of value-added tax.

(2) The specified person in relation to a business shall ensure that his tax reference number or, if he has more than one tax reference number, one of his tax reference numbers or, if he has not got a tax reference number, his full names and his address is or are stated on any document (being an invoice, credit note, debit note, receipt, account, statement of account, voucher or estimate relating to an amount of £5 or more) issued on or after the 1st day of September, 1983, in the course of that business.

(3) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column (3) thereof of “Finance Act, 1983, section 22 ”.

Publication of names of tax defaulters.

23.—(1) In this section “the Acts” means—

(a) the Tax Acts,

(b) the Capital Gains Tax Acts,

(c) the Value-Added Tax Act, 1972 , and the enactments amending or extending that Act,

(d) the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act,

(e) the statutes relating to stamp duty and to the management of that duty, and

(f) Part VI ,

and any instruments made thereunder.

(2) The Revenue Commissioners shall, as respects each year (being the year 1984 or a subsequent year), compile a list of the names and addresses and the occupations or descriptions of every person—

(a) upon whom a fine or other penalty was imposed by a court under any of the Acts during that year,

(b) upon whom a fine or other penalty was otherwise imposed by a court during that year in respect of an act or omission by the person in relation to tax, or

(c) in whose case the Revenue Commissioners, pursuant to an agreement made with the person in that year, refrained from initiating proceedings for recovery of any fine or penalty of the kind mentioned in paragraphs (a) and (b) and, in lieu of initiating such proceedings, accepted, or undertook to accept, a specified sum of money in settlement of any claim by the Revenue Commissioners in respect of any specified liability of the person under any of the Acts for—

(i) payment of any tax,

(ii) payment of interest thereon, and

(iii) a fine or other monetary penalty in respect thereof.

(3) Notwithstanding any obligation as to secrecy imposed on them by the Acts or the Official Secrets Act, 1963 —

(a) the Revenue Commissioners shall include in their annual report to the Minister for Finance, commencing with the report for the year 1984, the list referred to in subsection (2) for the year in respect of which the report is made, and

(b) the Revenue Commissioners may, at any time, cause any such list as is referred to in subsection (2) to be published in Iris Oifigiúil.

(4) Paragraph (c) of subsection (2) does not apply in relation to a person in whose case—

(a) the Revenue Commissioners are satisfied that, before any investigation or inquiry had been commenced by them or by any of their officers into any matter occasioning a liability referred to in the said paragraph of the person, the person had voluntarily furnished to them complete information in relation to and full particulars of the said matter, or

(b) the specified sum referred to in the said paragraph (c) does not exceed £10,000 or was paid on or before the 31st day of December, 1983.

(5) Any such list as is referred to in subsection (2) shall specify in respect of each person named in the list such particulars as the Revenue Commissioners think fit—

(a) of the matter occasioning the fine or penalty of the kind referred to in subsection (2) imposed on the person or, as the case may be, the liability of that kind to which the person was subject, and

(b) of any interest, fine or other monetary penalty, and of any other penalty or sanction, to which that person was liable, or which was imposed on him by a court, and which was occasioned by the said matter.

(6) In this section “tax” means income tax, capital gains tax, corporation tax, value-added tax, gift tax, inheritance tax, residential property tax and stamp duty.

Chapter V

Income Tax and Corporation Tax

Amendment of section 58 (Schedule D deduction of payments to trustees) of Finance Act, 1982.

24.— Section 58 (1) of the Finance Act, 1982 , is hereby amended with effect as on and from the 6th day of April, 1982—

(a) by the insertion after “the company concerned” of “or, in the case of a group scheme, by a participating company”, and

(b) by the insertion after the proviso of the following additional proviso:

“Provided also that the deduction to be allowed under this section or under any other provision of the Tax Acts in respect of any sum or the aggregate amount of any sums so expended in that accounting period shall not exceed such sum as is, in the opinion of the Revenue Commissioners, reasonable, having regard to the number of employees or directors of the company making the payment who have agreed to participate in the scheme, the services rendered by them to that company, the levels of their remuneration, the length of their service or similar factors.”,

and so much of the said section 58(1), as so amended, as precedes paragraph (a) thereof is set out in the Table to this section.

TABLE

58.—(1) As respects any accounting period, any sum expended in that accounting period by the company concerned or, in the case of a group scheme, by a participating company in making a payment or payments to the trustees of an approved scheme shall be included—

Amendment of provisions relating to restriction of relief for interest.

25.—(1) Section 21 of the Finance Act, 1982 , is hereby amended by the substitution of the following subsection for subsection (3)—

“(3) (a) Notwithstanding the provisions of subsection (2), the principal sections shall apply—

(i) in relation to a loan or loans made after the operative date but on or before the 9th day of February, 1983, to interest paid or payable on such loan or loans on or before the 5th day of April, 1985, and

(ii) in relation to a loan or loans made after the 9th day of February, 1983, to interest paid or payable on such loan or loans on or before the 5th day of April, 1983,

to the extent that the amount of the loan or the aggregate amount of the loans on which such interest is paid or payable in a year of assessment does not exceed the specified limit for the year of assessment and, if the said amount or the said aggregate amount on which interest is paid or payable on the loan or loans exceeds the specified limit for the year of assessment, the principal sections shall apply only to so much of that interest as bears to the whole of that interest the same proportion as that part of the said amount or the said aggregate amount which does not exceed the specified limit bears to the whole of the said amount or the said aggregate amount.

(b) In this subsection ‘specified limit’, in relation to a year of assessment, means—

(i) in the case of a husband who is assessed to tax for the year of assessment in accordance with the provisions of section 194 of the Income Tax Act, 1967 , £5,000,

(ii) in the case of a widowed person, £3,600, or

(iii) in any other case, £2,500.”.

(2) Section 23 of the Finance Act, 1982 , is hereby amended by the substitution of the following subsection for subsection (3)—

“(3) In relation to—

(a) relevant interest paid on or before the 5th day of April, 1985, on all loans made after the operative date but on or before the 9th day of February, 1983,

(b) relevant interest paid on or before the 5th day of April, 1983, on all loans made after the 9th day of February, 1983,

(c) interest—

(i) paid on or after the 6th day of April, 1983, on all loans made after the 9th day of February, 1983,

(ii) paid on or after the 6th day of April, 1985, on all loans whenever made,

(iii) paid after the operative date on an overdraft which was not in existence on that date,

(iv) paid on or after the 6th day of April, 1983, on an overdraft which was in existence on the operative date, and

(d) interest on an overdraft referred to in paragraph (c) (iv) where that interest is paid in the year ending on the 5th day of April, 1983, in so far as the amount of the interest exceeds the amount of the interest which would have been payable for that year on the amount of the overdraft on the operative date at the rate at which interest on that amount was chargeable on the operative date,

section 10 of the Corporation Tax Act, 1976 , shall have effect as if the following subsection were substituted for subsection (6)—

‘(6) Subject to subsection (7), interest shall not be treated as a charge on income.’.”.

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

26.—(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended by the substitution of “1983” for “1982” (inserted by the Finance Act, 1982 )—

(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, 1983.

(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, 1983, 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, 1983, 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, 1983,

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, 1983, 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 substitution in subsection (3) of “1983-84” for “1982-83” (inserted by the Finance Act, 1982 ), and

(b) by the substitution of “1983” for “1982” (inserted by the Finance Act, 1982 ) 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 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

(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 1983-84.

(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, 1983, 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, 1983, 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, 1983,

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, 1983, 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, 1983:

(3) (a) Subject to paragraph (c), this subsection applies to any amount which, as respects an accounting period of a company ending on a date later than the 5th day of April, 1982, and earlier than the 6th day of April, 1983, would, apart from paragraph (b), fall to be treated by virtue of section 31A of the Finance Act, 1975 , as a trading receipt of the company's trade for that accounting period.

(b) Notwithstanding any provision to the contrary, an amount to which this subsection applies in relation to a company shall not be treated as a trading receipt of the company's trade for the accounting period mentioned in paragraph (a) but shall be treated as a trading receipt of that trade for the earliest accounting period of the company ending after the 5th day of April, 1983.

(c) This subsection shall not have effect as respects a trade of a company where the provisions of subsection (10) (inserted by the Finance Act, 1977 ) of the said section 31A apply in relation to an accounting period of the company ending before the 6th day of April, 1983.

(4) (a) Subject to paragraph (c), this subsection applies to any amount which, as respects an accounting period ending on a date later than the 5th day of April, 1982, and earlier than the 6th day of April, 1983, would, apart from paragraph (b), fall to be treated by virtue of section 12 of the Finance Act, 1976 , as a trading receipt of a person's trade for that accounting period.

(b) Notwithstanding any provision to the contrary, an amount to which this subsection applies in relation to a person shall not be treated as a trading receipt of the person's trade for the accounting period mentioned in paragraph (a) but shall be treated as a trading receipt of that trade for the next succeeding accounting period.

(c) This subsection shall not have effect as respects a trade where the provisions of subsection (8) (inserted by the Finance Act, 1977 ) of the said section 12 apply in relation to the accounting period mentioned in paragraph (a).

Application of section 31 (building societies) of Corporation Tax Act, 1976, for 1983-84.

27.—(1) Section 40 (1) of the Finance Act, 1977 (as extended by section 52 of the Finance Act, 1980 ) shall have effect in relation to the year 1983-84 as it has effect in relation to the years 1980-81 and 1981-82—

(a) as respects any building society which, on or before the 30th day of September, 1983, gives to the Revenue Commissioners an undertaking in writing that it will co-operate fully with the said Commissioners in any scheme of theirs for determining (having regard to the obligation imposed on the said Commissioners by the proviso to section 31 (1) of the Corporation Tax Act, 1976 ) the reduced rate referred to in paragraph (a) of the said section 31(1), and, in particular, that it will furnish the said Commissioners with such returns, information and other particulars as the Commissioners consider necessary for the purposes of such determination, and

(b) as respects any other building society, subject to the modification that the said reduced rate which, by virtue of the said section 40(1) (as extended by this subsection) would, for the year 1983-84, be 70 per cent. of the standard rate shall, for that year, be 75 per cent. of the standard rate.

(2) In this section “building society” has the same meaning as in section 31 of the Corporation Tax Act, 1976 .

Distributions: increase in tax credits, etc.

28.—(1) Section 28 (1) of the Finance Act, 1978 , shall not have effect in relation to distributions made on or after the 6th day of April, 1983.

(2) Section 45 (5) of the Corporation Tax Act, 1976 , shall have effect as respects distributions received on or after the 6th day of April, 1983, as if section 28 (3) of the Finance Act, 1978 , had not been enacted.

(3) (a) This subsection applies to a distribution that is made by a company on or after the 6th day of April, 1983, and to which section 64 of the Corporation Tax Act, 1976 , applies.

(b) Section 28 (7) of the Finance Act, 1978 , shall not apply to a distribution to which this subsection applies.

(c) The reference to certain tax credits in the definition of B in subsection (2) of section 64 of the Corporation Tax Act, 1976 , shall, in relation to distributions to which the said section 64 applies and which—

(i) were received by a company that makes a distribution to which this subsection applies,

and

(ii) were made after the 5th day of April, 1978, and before the 6th day of April, 1983,

be construed as a reference to forty-nine-thirty-ninths of those tax credits.

Application of section 23 (deduction for certain expenditure on construction of rented residential accommodation) of Finance Act, 1981.

29—(1) Section 23 (hereafter in this section and in section 30 referred to as “the principal section”) of the Finance Act, 1981 , is hereby amended by the substitution in subsection (1) (a), in the definition of “qualifying period”, of “1987” for “1984”, and the said definition, as so amended, is set out in the Table to this subsection.

TABLE

“qualifying period” means the period commencing on the 29th day of January, 1981, and ending on the 31st day of March, 1987;

(2) For the purposes of relief under the principal section for expenditure to which this section applies, the definition of “qualifying premises” in subsection (1) (a) of the principal section shall have effect as if the reference therein to 75 square metres were a reference to 90 square metres:

Provided that a house (being a flat or maisonette of the kind mentioned in the definition) the total floor area of which is more than 75 square metres shall not be a qualifying premises by virtue of this subsection unless it contains three or more bedrooms; and, for the purposes of this proviso, “bedroom” means a room which is certified by the Minister for the Environment—

(a) to have been designed and constructed for use as a bedroom, and

(b) to be suitable for such use.

(3) Where, by virtue of subsection (2) of the principal section, any expenditure to which this section applies falls to be taken into account for any chargeable period in computing, under section 81 (4) of the Income Tax Act, 1967 , a deficiency in respect of any rent from a qualifying premises, then, notwithstanding the said subsection (2), only so much of that expenditure as does not exceed the amount of that rent shall be so taken into account and subsection (4) shall apply as respects any subsequent chargeable period to any excess of that expenditure over the amount of that rent (hereafter in this section referred to as “excess expenditure”).

(4) Where, as respects any chargeable period in respect of which subsection (3) applies, there is an amount of excess expenditure, that amount shall be treated, for the purposes of subsection (2) of the principal section and of subsection (3) of this section (including any further application of this subsection), as if it were expenditure to which this section applies which, by virtue of the said subsection (2), falls to be taken into account for the next succeeding chargeable period in computing under section 81 (4) of the Income Tax Act, 1967 , a surplus or deficiency in respect of any rent from the qualifying premises.

(5) Where, under the proviso to subsection (2) of the principal section, there falls to be made any reduction of expenditure falling to be treated as having been incurred in the qualifying period but in part on or before the 31st day of March, 1984, and in part after that date, the amount of that reduction shall be apportioned to that part of the qualifying period falling on or before that date and to that part of the qualifying period falling after that date according to the respective amounts of the expenditure treated as having been incurred in those parts.

(6) Where, under subsection (6) or (7) of the principal section, or under either of those subsections as applied by section 24 of the Finance Act, 1981 , a person is treated as having incurred expenditure (hereafter in this subsection referred to as “the first-mentioned expenditure”) in the qualifying period on the construction of a house and an amount of expenditure actually incurred on the construction or conversion of that house falls to be treated as having been incurred in the qualifying period but in part on or before the 31st day of March, 1984, and in part after that date, the first-mentioned expenditure shall be treated as having been incurred in part on or before that date and in part after that date in the same proportions as the amount of expenditure actually incurred in the qualifying period fell to be so treated.

(7) (a) In this section—

“chargeable period” means—

(i) in a case where any rent is chargeable to income tax, a year of assessment, and

(ii) in a case where any rent is chargeable to corporation tax, an accounting period;

“expenditure to which this section applies” means expenditure incurred in the period (hereafter in this definition referred to as “the first-mentioned period”) commencing on the 1st day of April, 1984, and ending on the 31st day of March, 1987, on the construction of a qualifying premises; and for the purposes of determining whether and to what extent such expenditure was so incurred in the first-mentioned period, subsection (1) (b) of the principal section shall have effect as if the references in subparagraph (i) thereof to the qualifying period were references to the first-mentioned period and with any other necessary modifications.

(b) This section and section 30 shall be construed together with the principal section.

Application of section 24 (provisions supplementary to section 23) of Finance Act, 1981.

30.—(1) Subsections (2), (3) and (4) of section 29 shall, with any necessary modifications, apply to expenditure to which this section applies as they apply to expenditure to which that section applies.

(2) In this section “expenditure to which this section applies” means expenditure incurred in the period (hereafter in this definition referred to as “the first-mentioned period”) commencing on the 1st day of April, 1984, and ending on the 31st day of March, 1987, on the conversion into two or more houses of a building which, prior to the conversion, had not been in use as a dwelling or had been in use as a single dwelling; and for the purposes of determining whether and to what extent such expenditure was so incurred in the first-mentioned period, subsection (1) (b) of the principal section shall have effect as if the references in subparagraph (i) thereof to the qualifying period were references to the first-mentioned period and with any other necessary modifications.

Chapter VI

Corporation Tax

Continuance of relief in respect of increase in employment.

31.— Chapter VII of Part I of the Finance Act, 1982 , shall have effect as respects an accounting period or part of an accounting period of a company falling within the year ending on the 30th day of June, 1984, as it has effect as respects an accounting period or part of an accounting period of a company falling within the year ending on the 30th day of June, 1983, subject to the modifications that—

(a) in section 43 of that Act, in the definition of “relevant period”, “1984” shall be substituted for “1983”,

(b) in sections 44 and 45 of that Act, “1983” shall be substituted for “1982” in each place where it occurs, and

(c) in section 46 of that Act, “1982” shall be substituted for “1981”.

Exemption from corporation tax of profits of Bord Gáis Éireann.

32.—Notwithstanding any provision of the Corporation Tax Acts, profits arising to Bord Gáis Éireann in any accounting period ending after the 31st day of December, 1982, shall be exempt from corporation tax.

Amendment of section 56 (export of certain goods) of Corporation Tax Act, 1976.

33.— Section 56 of the Corporation Tax Act, 1976 , is hereby amended, as respects sales (whether made before or after the passing of this Act) of any pigmeat product, by the substitution in subsection (1) for the definition of “the Commission” of the following definition:

“‘the Commission’ means the Pigs and Bacon Commission or the Pigs and Bacon Commission Limited, as the case may be;”.

Extension of exempted transactions in relation to agricultural societies.

34.—The Second Schedule to the Finance Act, 1978 , is hereby amended by the insertion in paragraph 2 of Part I before “warble fly eradication” of “services provided in the course of promoting the breeding, registration and sale of pedigree breeds of farm livestock”.

Amendment of section 98 (loans to participators, etc.) of Corporation Tax Act, 1976.

35.— Section 98 of the Corporation Tax Act, 1976 , is hereby amended by the insertion after subsection (8) of the following subsection:

“(9) For the purposes of this section and in relation to any loan or advance made on or after the 23rd day of May, 1983, section 94 (1) shall have effect as if the reference in paragraph (b) to a registered industrial and provident society were deleted.”.

Amendment of section 143 (return of profits) of Corporation Tax Act, 1976.

36.— Section 143 of the Corporation Tax Act, 1976 , is hereby amended by the substitution of the following subsection for subsection (7):

“(7) (a) Where a company which has been duly required to deliver a return under this section fails to deliver the return, or where the inspector is not satisfied with the return delivered by any such company, an authorised officer may serve on that company a notice in writing or notices in writing requiring it to do any of the following things, that is to say—

(i) to deliver to the inspector or to the authorised officer copies of such accounts (including balance sheets) of the company as may be specified or described in the notice, within such period as may be therein specified, including, where the accounts have been audited, a copy of the auditor's certificate;

(ii) to make available, within such time as may be specified in the notice, for inspection by an inspector or by an authorised officer, all such books, accounts and documents in the possession or power of the company as may be specified or described in the notice, being books, accounts and documents which contain information as to profits, assets or liabilities of the company.

(b) The inspector or authorised officer may take copies of, or extracts from, any books, accounts or documents made available for his inspection under this subsection.

(c) The reference in subsection (8) (a) to the delivery of a return shall be deemed to include a reference to the doing of any of the things specified in subparagraphs (i) and (ii) of paragraph (a) of this subsection.

(d) In this subsection ‘an authorised officer’ means an inspector or other officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this subsection.”.

Amendment of section 146 (appeals) of Corporation Tax Act, 1976.

37.— Section 146 of the Corporation Tax Act, 1976 , is hereby amended by the substitution of the following subsection for subsection (1):

“(1) The provisions of Part XXVI (Appeals) of the Income Tax Act, 1967 , shall apply for the purposes of corporation tax as they apply for the purposes of income tax and, accordingly, in those provisions—

(a) any reference to income tax shall be taken as including a reference to corporation tax,

(b) any reference to a year of assessment shall be taken as including a reference to an accounting period,

(c) any reference to a return of income shall be taken as including a reference to a return under section 143, and

(d) any reference to the Income Tax Acts shall be taken as including a reference to the Corporation Tax Acts.”.

Chapter VII

Advance Corporation Tax

Liability for advance corporation tax.

38.—Save as is otherwise provided for in this Chapter, where a company resident in the State makes a distribution on or after the 9th day of February, 1983, it shall be liable to make a payment of corporation tax (to be known as “advance corporation tax”) in accordance with this Chapter and, subject to section 41 , the amount of that payment shall, whether or not the recipient of the distribution is a person entitled to a tax credit in respect thereof, be equal to the amount of the tax credit to which a recipient who is such a person is entitled in respect thereof.

Set-off of advance corporation tax.

39.—(1) Advance corporation tax paid by a company (and not repaid) in respect of any distribution made by it in an accounting period shall be set, so far as possible, against its liability to corporation tax on any income charged to corporation tax for that accounting period and shall accordingly discharge a corresponding amount of that liability.

(2) Where in the case of any accounting period of a company there is an amount of surplus advance corporation tax (that is to say, advance corporation tax which cannot be set against the company's liability to corporation tax for that period because of a want or deficiency of income charged to corporation tax for the period or because of any relief from or reduction in the amount of corporation tax charged on such income for the period), the company may, within two years after the end of that period, claim to have the whole or any part of that amount treated for the purposes of this section (but not of any further application of this subsection) as if it were advance corporation tax paid in respect of distributions made by the company in any of its accounting periods ending in the period of twelve months immediately preceding that accounting period (but so that the amount which is the subject of the claim is set, so far as possible, against the company's liability for a more recent accounting period before a more remote one) and corporation tax shall, so far as may be required, be repaid accordingly.

(3) Where in the case of any accounting period of a company there is an amount of surplus advance corporation tax which has not been dealt with under subsection (2), that amount shall be treated for the purposes of this section (including any further application of this subsection) as if it were advance corporation tax paid in respect of distributions made by the company in the next accounting period.

(4) For the purposes of this section the income of a company charged to corporation tax for any accounting period shall be its income for that period as defined in section 28 of the Corporation Tax Act, 1976 , for the purposes of that section.

(5) For the purposes of this section a notice under section 143 of the Corporation Tax Act, 1976 , may require the inclusion in the return to be delivered by a company under the said section 143 of particulars of any surplus advance corporation tax carried forward in relation to that company under subsection (3).

(6) This section shall have effect subject to the subsequent provisions of this Chapter.

Rectification of excessive set-off of advance corporation tax.

40.—If an inspector discovers that any set-off of advance corporation tax under section 39 ought not to have been made, or is or has become excessive, the inspector may make any such assessments as may in his judgment be required for recovering any tax that ought to have been paid and generally for securing that the resulting liabilities to tax (including interest on unpaid tax) of the persons concerned are what they would have been if only such set-offs had been made as ought to have been made.

Calculation of advance corporation tax where company receives distributions.

41.—(1) Where in any accounting period a company receives a distribution, the company shall not be liable to pay advance corporation tax in respect of distributions made by it in that period unless the aggregate amount of the tax credits in respect of the distributions made by it in the period exceeds the aggregate amount of the tax credits in respect of distributions received by it in the period.

(2) If in any accounting period there is such an excess as is referred to in subsection (1), the amount of advance corporation tax payable by the company in respect of distributions made by it in that period shall be equal to the excess.

(3) If the aggregate amount of the tax credits in respect of distributions received by a company in an accounting period exceeds the sum of—

(a) the aggregate amount of the tax credits (if any) in respect of distributions made by it in that period, and

(b) the amount of any payment to the company, under any provision of the Corporation Tax Acts, of the tax credits in respect of distributions received by it in that period,

the excess shall be carried forward to the next accounting period and treated for the purposes of this section (including any further application of this subsection) as a tax credit in respect of a distribution received by the company in that period.

(4) If an inspector discovers that, owing to the payment to a company of the tax credit in respect of a distribution received by it or for any other reason, the amount carried forward under subsection (3) to an accounting period (and treated as a tax credit in respect of a distribution received by the company in that period) is or has become excessive, the inspector may make any such assessments, adjustments or set-offs as may in his judgment be required for securing that the amount of advance corporation tax (including interest on unpaid tax) payable by the company in respect of distributions made by it in that period is the same as it would have been if only such an amount had been so carried forward as ought to have been carried forward.

(5) In the foregoing provisions of this section references to a distribution or distributions do not include references to a distribution or distributions—

(a) made before the 9th day of February, 1983, or

(b) treated, under any provision of this Chapter, as not being a distribution or distributions for the purposes of this section.

Tax credit recovered from company.

42.—(1) Where under any provision of the Corporation Tax Acts a company obtains payment of a tax credit in respect of a distribution received by it on or after the 9th day of February, 1983, and that tax credit or any part thereof is subsequently recovered from the company by an assessment on it to income tax under Case IV of Schedule D, then the amount of the tax credit so recovered shall be treated for the purposes of section 41 as if it were a tax credit in respect of a distribution received by the company in the accounting period in which the amount is so recovered.

(2) Subsection (1) shall not apply in relation to a tax credit in respect of a distribution which, by virtue of section 49 , is treated as not being a distribution for the purposes of section 41 .

Restriction as to payment of tax credit.

43.—(1) Where—

(a) by virtue of section 41 the amount of advance corporation tax payable by a company in respect of distributions made by it in an accounting period is less than the amount of advance corporation tax which would have been payable by the company in respect of those distributions if that section had not been enacted, and

(b) either—

(i) no amount is treated under section 41 (3) as a tax credit in respect of a distribution received by the company in the accounting period, or

(ii) the aggregate amount of the tax credits in respect of distributions made by the company in the accounting period is greater than the amount which is so treated under section 41 (3),

then, an amount of the tax credits in respect of distributions received by the company in the accounting period shall not be available for payment to the company under any provision of the Corporation Tax Acts, and the amount which is not so available shall be the aggregate amount of the tax credits in respect of distributions received by the company in the accounting period or, if it is less, an amount determined by the formula

A—B

where—

A is the aggregate amount of the tax credits in respect of distributions made by the company in the accounting period, and

B is the amount (if any) so treated under section 41 (3).

(2) For the purposes of subsection (1) account shall not be taken of any distribution made before the 9th day of February, 1983, or of any distribution which is treated as not being a distribution for the purposes of section 38 or 41 under any provision of this Chapter.

Group-dividends.

44.—(1) Where a company receives dividends from another company (both being companies resident in the State) and the company paying the dividends is—

(a) a 51 per cent. subsidiary of the other or of a company so resident of which the other is a 51 per cent. subsidiary, or

(b) a trading or holding company owned by a consortium the members of which include the company receiving the dividends,

then, subject to the following provisions of this section, the company receiving the dividends and the company paying them may jointly elect that this subsection shall apply to the dividends received from the latter by the former, and so long as the election is in force—

(i) any such dividends shall be treated as not being distributions for the purposes of either section 38 or 41 , and

(ii) the tax credits in respect of those dividends shall not be available for payment, under any provision of the Corporation Tax Acts, to the company by which the dividends are received.

(2) Subsection (1) shall not apply to any dividend received by a company on any investments if a profit on the sale of those investments would be treated as a trading receipt of that company.

(3) Where a company purports by virtue of an election under subsection (1) to pay any dividend without paying advance corporation tax and advance corporation tax ought to have been paid, the inspector may make such assessments, adjustments or set-offs as may in his judgment be required for securing that the resulting liabilities to tax (including interest on unpaid tax) of the company paying and the company receiving the dividend are, so far as possible, the same as they would have been if the advance corporation tax had been duly paid.

(4) Where tax assessed under subsection (3) on the company which paid the dividend is not paid by that company before the expiry of three months from the date on which that tax is payable, that tax shall, without prejudice to the right to recover it from that company, be recoverable from the company which received the dividend.

(5) Subsections (5) and (6) of section 105 of the Corporation Tax Act, 1976 , shall apply for the purposes of this section as they apply for the purposes of that section.

(6) References in this section to a dividend or dividends received by a company apply to any received by another person on behalf of or in trust for the company but not to any received by the company on behalf of or in trust for another person.

(7) The provisions of section 106 of the Corporation Tax Act, 1976 , shall, with any necessary modifications, have effect for the purposes of this section as they have effect for the purposes of section 105 of that Act.

Surrender of advance corporation tax.

45.—(1) Where a company (hereafter in this section referred to as “the surrendering company”) has paid an amount of advance corporation tax in respect of a dividend or dividends paid by it in an accounting period and the advance corporation tax has not been repaid, and if throughout the accounting period the surrendering company would be treated as a member of a group of companies for the purposes of group relief under Part XI of the Corporation Tax Act, 1976 , it may, on making a claim to the inspector, surrender the benefit of the whole or any part of that amount to any company (hereafter in this section referred to as “the recipient company”) which for the purposes of the said group relief would be treated as a member of the same group of companies throughout that accounting period or (in such proportions as the surrendering company may determine) to any two or more such companies.

(2) Subject to subsections (4) and (5), where the benefit of any amount of advance corporation tax (hereafter in this section referred to as “the surrendered amount”) is surrendered under this section to a recipient company, then—

(a) if the advance corporation tax mentioned in subsection (1) was paid in respect of one dividend only or of dividends all of which were paid on the same date, the recipient company shall be treated for the purposes of section 39 as having paid an amount of advance corporation tax equal to the surrendered amount in respect of a distribution made by it on the date on which the dividend or dividends were paid,

(b) if the advance corporation tax mentioned in subsection (1) was paid in respect of dividends paid on different dates, the recipient company shall be treated for the purposes of section 39 as having paid an amount of advance corporation tax equal to the appropriate part of the surrendered amount in respect of a distribution made by it on each of those dates.

(3) For the purposes of paragraph (b) of subsection (2) “the appropriate part of the surrendered amount”, in relation to any distribution treated as made on the same date as that on which a dividend was paid, means such part of that amount as bears to the whole of it the same proportion as the amount of the tax credit in respect of that dividend bears to the total amount of the tax credits in respect of the dividends mentioned in that paragraph.

(4) No amount of advance corporation tax which a recipient company is treated as having paid by virtue of subsection (2) shall, under section 39 (2), be set against the recipient company's liability to corporation tax; but in determining for the purposes of subsections (2) and (3) of the said section 39 what (if any) amount of surplus advance corporation tax there is in any accounting period of a recipient company, an amount so treated as having been paid shall be set against the recipient company's liability to corporation tax before any advance corporation tax paid in respect of any distribution made by the recipient company.

(5) No amount of advance corporation tax which a recipient company is treated as having paid by virtue of subsection (2) shall be set against the recipient company's liability to corporation tax for any accounting period in which, or in any part of which, the recipient company and the surrendering company would not be treated for the purposes of group relief under Part XI of the Corporation Tax Act, 1976 , as members of the same group of companies.

(6) Any claim under this section shall be made within two years after the end of the accounting period to which it relates and shall require the consent of the recipient company or companies concerned (which shall be notified to the inspector in such form as the Revenue Commissioners may require).

(7) No amount of advance corporation tax which has been set off under section 39 (1) or dealt with under section 39 (2) shall be available for the purposes of a claim under this section; and no amount of advance corporation tax, the benefit of which has been surrendered under this section, shall be treated for the purposes of the said section 39 as advance corporation tax paid by the surrendering company.

(8) A payment made by a recipient company to a surrendering company in pursuance of an agreement between them as respects the surrender of the benefit of an amount of advance corporation tax, being a payment not exceeding that amount—

(a) shall not be taken into account in computing profits or losses of either company for corporation tax purposes, and

(b) shall not, for any of the purposes of the Corporation Tax Acts, be regarded as a distribution or a charge on income.

Change in ownership of company: calculation and treatment of advance corporation tax.

46.—(1) This section applies if—

(a) within any period of three years there is both a change in the ownership of a company and (either earlier or later in that period, or at the same time) a major change in the nature or conduct of a trade or business carried on by the company, or

(b) at any time after the scale of the activities in a trade or business carried on by a company has become small or negligible, and before any considerable revival of the trade or business, there is a change in ownership of the company.

(2) Sections 39 , 41 and 50 shall apply to an accounting period in which the change of ownership occurs as if the part ending with the change of ownership, and the part after, were two separate accounting periods; and for that purpose the income of the company charged to corporation tax for the accounting period (as defined in section 39 (4)) shall be apportioned between those parts.

(3) No advance corporation tax paid by the company in respect of distributions made in an accounting period beginning before the change of ownership shall be treated under section 39 (3) as paid by it in respect of distributions made in an accounting period ending after the change of ownership; and this subsection shall apply to an accounting period in which the change of ownership occurs as if the part ending with the change of ownership, and the part after, were two separate accounting periods.

(4) In subsection (1) (a) “major change in the nature or conduct of a trade or business” includes—

(a) a major change in the type of property dealt in, or services or facilities provided, in the trade or business, or

(b) a major change in customers, outlets or markets of the trade or business, or

(c) a change whereby the company ceases to be a trading company and becomes an investment company or vice versa, or

(d) where the company is an investment company, a major change in the nature of the investments held by the company,

and this section applies even if the change is the result of a gradual process which began outside the period of three years mentioned in subsection (1) (a).

(5) In this section—

“trading company” means a company whose business consists wholly or mainly of the carrying on of a trade or trades;

“investment company” means a company (other than a holding company) whose business consists wholly or mainly in the making of investments and the principal part of whose income is derived therefrom;

“holding company” means a company whose business consists wholly or mainly in the holding of shares or securities of companies which are its 90 per cent. subsidiaries and which are trading companies.

(6) Subsection (3) applies to advance corporation tax which a company is treated as having paid by virtue of section 45 (2) as it applies to advance corporation tax which has been paid by the company.

(7) Subsections (6) and (7) of section 27 of the Corporation Tax Act, 1976 , shall apply for the purposes of this section as they apply for the purposes of that section and shall so apply as if—

(a) the reference in paragraph 3 of Part I of the Fifth Schedule to the Finance Act, 1973 , to losses or capital allowances were a reference to advance corporation tax, and

(b) the reference in paragraph 7 of the said Part I to the 16th day of May, 1973, were a reference to the 9th day of February, 1983.

(8) Section 149 of the Corporation Tax Act, 1976 , shall apply in relation to a notice given under paragraph 9 of Part I of the Fifth Schedule to the Finance Act, 1973 (as applied for the purposes of this section by subsection (7)) as it applies in relation to such a notice given for the purposes of section 27 of the Corporation Tax Act, 1976 .

(9) This section shall not apply if the change of ownership took place before the 9th day of February, 1983, and subsection (1) (a) shall not apply if the major change in the nature or conduct of the trade or business was completed before that date; but in other respects this section shall have effect by reference to circumstances and events before that date, as well as by reference to later circumstances and events.

Distributions to certain non-resident companies.

47.—(1) (a) This section applies to any distribution which—

(i) is a distribution by virtue only of section 84 (2) (d) (iv) of the Corporation Tax Act, 1976 , or

(ii) is a dividend paid by a company (hereafter in this subsection referred to as the “first-mentioned company”) to another company—

(I) of which the first-mentioned company is a 75 per cent. subsidiary, and,

(II) which is a resident of the United States of America or of a territory with the government of which arrangements having the force of law by virtue of section 361 of the Income Tax Act, 1967 , have been made.

(b) For the purposes of paragraph (a)—

“resident of the United States of America” has the meaning assigned to it by the Convention set out in Schedule 8 to the Income Tax Act, 1967 ;

a company shall be regarded as being a resident of a territory other than the United States of America if it is so regarded under the provisions of arrangements made with the government of that territory and having the force of law by virtue of section 361 of the said Act.

(2) Where a company proves that this section applies to a distribution made by it and claims to have the distribution treated as not being a distribution for the purposes of section 38 , then—

(a) the distribution shall be so treated, and

(b) notwithstanding any provision of the Tax Acts, the company to which the distribution is made shall not be entitled to a tax credit in respect of the distribution.

(3) Any claim under this section shall be made in the return made under section 50 for the accounting period in which the distribution is made and shall require the consent, notified to the inspector in such form as the Revenue Commissioners may require, of the company to which the distribution is made.

(4) Subsection (1) of section 361 of the Income Tax Act, 1967 , is hereby amended by the substitution for “, the arrangements shall, notwithstanding anything in any enactment,” of “and section 47 of the Finance Act, 1983, the arrangements shall, notwithstanding anything in any enactment, other than the said section 47 ,”, and the said subsection (1), as so amended, is set out in the Table to this subsection.

TABLE

361. (1) If the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of income tax or corporation tax and any taxes of a similar character, imposed by the laws of the State or by the laws of that territory, and that it is expedient that those arrangements should have the force of law, then, subject to the provisions of this Part and section 47 of the Finance Act, 1983, the arrangements shall, notwithstanding anything in any enactment, other than the said section 47 , have the force of law.

Interest in respect of certain securities.

48.—(1) Subject to subsection (2), this section applies to any interest which is a distribution and which is paid by a company in respect of a security of the company falling within subparagraph (ii), (iii) (I) or (v) of section 84 (2) (d) of the Corporation Tax Act, 1976 , where—

(a) the security in respect of which the interest is paid was issued by the company to another company the ordinary trading activities of which include the lending of money, and

(b) either—

(i) the obligation to pay the interest was entered into before the 9th day of February, 1983, or

(ii) that obligation was entered into before the 9th day of June, 1983, pursuant to negotiations which were in progress on the 9th day of February, 1983:

Provided that an obligation shall be treated for the purposes of paragraph (b) as having been entered into before a particular date if, but only if, before that date, there was in existence a binding contract in writing under which that obligation arose and, where that contract was subject to the execution of a loan agreement, that the loan agreement was duly executed before the 9th day of June, 1983.

(2) (a) Where the period of repayment (hereafter in this subsection referred to as “the repayment period”) of either principal or interest provided for under such an obligation as is referred to in subsection (1) (b) is extended on or after the 9th day of February, 1983 (whether or not the right to such an extension arose out of the terms of the contract creating that obligation), then, subject to paragraph (b), this section shall not apply to any interest which is paid in respect of the period by which the repayment period is extended.

(b) Where the repayment period is extended before the 9th day of June, 1983, pursuant to negotiations which were in progress on the 9th day of February, 1983, paragraph (a) shall not apply to any interest which is paid in respect of the shorter of the following periods, that is to say—

(i) the period by which the repayment period is extended, and

(ii) the first five years of the period mentioned in subparagraph (i).

(3) Interest to which this section applies shall not be treated as a distribution for the purposes of either section 38 or 41 .

(4) The tax credit in respect of any interest to which this section applies shall not be available, under any provision of the Corporation Tax Acts, for payment to the person by whom the interest is received.

Dividends paid before 1st July, 1983.

49.—(1) This section applies to a dividend which is paid by a company on or after the 9th day of February, 1983, and before the 1st day of July, 1983, and which—

(a) was declared by the company in general meeting before the first-mentioned date, or

(b) was declared in general meeting on or after the first-mentioned date, but in accordance with a recommendation of the directors, and the directors' decision to make that recommendation was, with the authority of the directors, publicly announced before that date, or

(c) was paid in accordance with a decision of the directors, and that decision was, with their authority, publicly announced before the first-mentioned date.

(2) Where a company proves that this section applies to a dividend paid by it, and claims to have the dividend treated as not being a distribution for the purposes of section 38 , then—

(a) the dividend shall be so treated, and

(b) the dividend shall also be treated as not being a distribution for the purposes of section 41 .

(3) A claim under this section shall be made to the inspector and shall be so made before the 9th day of August, 1983.

Returns and collection of advance corporation tax.

50.—(1) This section shall have effect for the purpose of regulating the time and manner in which advance corporation tax is to be accounted for and paid.

(2) A company shall, for each of its accounting periods make, in accordance with this section, a return to the Collector-General of the distributions made and distributions received by it in that period and of the advance corporation tax (if any) payable by it in respect of the distributions made by it.

(3) A return for any period for which a return is required to be made under this section shall be made within six months from the end of that period.

(4) A return under this section need not be made by a company for an accounting period in which it has not made a distribution.

(5) (a) The return made by a company for an accounting period shall show—

(i) the amount of the distributions made by the company in the period and the amount of the tax credits in respect of those distributions,

(ii) the amount (if any) of the distributions received by the company in the period and the amount of the tax credits in respect of those distributions,

(iii) the amount of any tax credit which is carried forward to the accounting period and treated under section 41 (3) as a tax credit in respect of a distribution received by the company in that period, and

(iv) the amount (if any) of advance corporation tax which is payable by the company in respect of the distributions made by it in the period.

(b) The return shall specify whether any amount of tax credits is included pursuant to paragraph (a) (i) in respect of distributions which are treated as not being distributions for the purposes of section 38 under any provision of this Chapter and, if so, the amount so included.

(c) The return shall specify whether any amount of tax credits is included pursuant to paragraph (a) (ii) in respect of distributions which are treated as not being distributions for the purposes of section 41 under any provision of this Chapter and, if so, the amount so included.

(d) Where any amount is included in the return pursuant to subparagraph (ii) or (iii) of paragraph (a), the inclusion shall be treated as a claim by the company to have it taken into account in determining the amount of advance corporation tax which is payable, and any such claim shall be supported by such evidence as the inspector may reasonably require.

(6) Advance corporation tax in respect of any distribution required to be included in a return under this section shall be due at the time by which the return is to be made and shall be paid to the Collector-General, and advance corporation tax so due shall be payable by the company without the making of any assessment; but advance corporation tax which has become due as aforesaid may be assessed on the company (whether or not it has been paid when the assessment is made) if that tax, or any part of it, is not paid on or before the due date.

(7) If it appears to the inspector that there is a distribution which ought to have been and has not been included in a return, or if the inspector is dissatisfied with any return, he may make an assessment on the company to the best of his judgment; and any advance corporation tax due under an assessment made by virtue of this subsection shall be treated for the purposes of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.

(8) Where a company makes a distribution on a date which does not fall within an accounting period of the company, an accounting period of the company shall be deemed to end on that date and the company shall make a return of that distribution within six months from that date; and the advance corporation tax for which the company is accountable in respect of that distribution shall be due at the time by which the return is to be made.

(9) Where any item has been incorrectly included in a return under this section as a distribution made or a distribution received by a company, the inspector may make any such assessments, adjustments or set-offs as may in his judgment be required for securing that the resulting liabilities to tax (including interest on unpaid tax) whether of the company or of any other person are, so far as possible, the same as they would have been if the item had not been so included.

(10) (a) Advance corporation tax assessed on a company under this section shall be due within one month after the issue of the notice of assessment (unless due earlier under subsection (6) or (8)) subject to any appeal against the assessment, but no such appeal shall affect the date when tax is due under subsection (6) or (8).

(b) On the determination of an appeal against an assessment under this section any tax overpaid shall be repaid.

(11) (a) All the provisions of the Corporation Tax Acts relating to—

(i) assessments to corporation tax,

(ii) appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and

(iii) the collection and recovery of corporation tax,

shall, so far as they are applicable, apply to the assessment, collection and recovery of advance corporation tax under this section.

(b) Any tax payable in accordance with this section without the making of an assessment shall carry interest at the rate of 1.25 per cent. for each month or part of a month from the date when the tax becomes due and payable until payment.

(c) The provisions of subsections (3), (4) and (5) of section 550 of the Income Tax Act, 1967 , shall apply in relation to interest payable under paragraph (b) as they apply in relation to interest payable under the said section 550.

(d) In its application to any tax charged by any assessment to advance corporation tax in accordance with this section, section 550 of the Income Tax Act, 1967 , shall have effect with the omission of the proviso to subsection (1) and subsections (2) and (2A).

(e) Notwithstanding anything in the Corporation Tax Acts, the provisions of section 419 of the Income Tax Act, 1967 , and section 30 of the Finance Act, 1976 , shall not apply in relation to any tax which is charged by any assessment to advance corporation tax in accordance with this section.

(12) The provisions of subsections (3), (8), (9), (10), (11) and (12) (b) of section 143 of the Corporation Tax Act, 1976 , shall, with any necessary modifications, apply in relation to a return under the provisions of this section as they apply in relation to a return under the provisions of the said section 143.

(13) In the foregoing provisions of this section references to a distribution or distributions do not include references to a distribution or distributions made by a company which is not resident in the State.

Cesser of certain provisions.

51.—(1) The provisions of the Corporation Tax Act, 1976 , specified in subsection (2) shall not have effect in relation to distributions (other than dividends falling within section 49 (2)) made on or after the 9th day of February, 1983.

(2) The provisions of the Corporation Tax Act, 1976 , referred to in subsection (1) are section 18 (4), subsection (8) (inserted by the Finance Act, 1982 ) of section 25, paragraph (b) of the proviso to section 26(3) and sections 90,91,167 and 168.

Transitional reduction of advance corporation tax.

52.—(1) Notwithstanding anything in this Chapter, the amount of advance corporation tax which a company shall be liable to pay in respect of distributions made by it in an accounting period ending on or before the 8th day of February, 1984, shall be one-half of the amount of advance corporation tax which, apart from this section, the company would have been liable to pay in respect of those distributions.

(2) Where part of an accounting period of a company falls before the 9th day of February, 1984, and the other part falls in a period beginning on that date, this Chapter shall apply as if the part ending on the 8th day of February, 1984, and the part beginning on the 9th day of February, 1984, were two separate accounting periods.

Application of Corporation Tax Acts.

53.—The provisions of the Corporation Tax Acts as to the charge, calculation and payment of corporation tax (including provisions conferring any relief or exemption) shall not be construed as affecting the charge, calculation or payment of advance corporation tax.

CHAPTER VIII

Capital Gains Tax

Extension of section 19 (Government and other securities) of Capital Gains Tax Act, 1975.

54.— Section 19 of the Capital Gains Tax Act, 1975 , shall apply in relation to securities issued by Irish Telecommunications Investments Limited and guaranteed by the Minister for Finance as it applies to the forms of security specified in paragraph (d) of that section.

Amendment of Schedule 4 (administration) to Capital Gains Tax Act, 1975.

55.—Paragraph 8 of Schedule 4 to the Capital Gains Tax Act, 1975 , is hereby amended, as respects appeals against assessments made after the passing of this Act—

(a) by the substitution of the following subparagraph for subparagraph (1):

“(1) A person aggrieved by any assessment under this Act made upon him by the inspector or such other officer as is mentioned in paragraph 1 (2) shall be entitled to appeal to the Appeal Commissioners on giving, within thirty days after the date of the notice of assessment, notice in writing to the inspector or other officer and, in default of notice of appeal by a person to whom notice of assessment has been given, the assessment made on him shall be final and conclusive.”, and

(b) by the substitution in subparagraph (2) of the following clauses for clauses (e), (f) and (g):

“(e) the hearing, determination or dismissal of an appeal by the Appeal Commissioners, including the hearing, determination or dismissal of an appeal by one Appeal Commissioner;

(f) the assessment having the same force and effect as if it were an assessment in respect of which no notice of appeal had been given where the person who has given notice of appeal does not attend before the Appeal Commissioners at the time and place appointed;

(g) the extension of the time for giving notice of appeal and the readmission of appeals by the Appeal Commissioners and the provisions which apply where action by way of court proceedings has been taken;”.

Chargeable gains accruing on disposals by certain persons.

56.—(1) This section shall apply to chargeable gains accruing on disposals made after the passing of this Act.

(2) In this section—

“accountable person” means—

(a) a liquidator of a company, or

(b) any person entitled to an asset by way of security or to the benefit of a charge or encumbrance on an asset, or, as the case may be, any person appointed to enforce or give effect to the security, charge or encumbrance;

“referable capital gains tax” has the meaning assigned to it by subsection (8);

“referable corporation tax” has the meaning assigned to it by subsection (9);

“relevant disposal” has the same meaning as in section 36 of the Finance Act, 1982 .

(3) Where section 8 (5) or 41 of the Capital Gains Tax Act, 1975 , has effect in respect of the disposal of an asset in a year of assessment by an accountable person, then, notwithstanding any provision of the Capital Gains Tax Acts—

(a) any referable capital gains tax in respect of any chargeable gains which accrue on the disposal shall be assessable on and recoverable from the accountable person,

(b) the referable capital gains tax shall be treated as a necessary disbursement out of the proceeds of the disposal and shall be paid by the accountable person out of those proceeds, and

(c) referable capital gains tax paid by the accountable person shall discharge a corresponding amount of the liability to capital gains tax, for the year of assessment in which the disposal is made, of the person (hereafter in this section referred to as “the debtor”) who, apart from this subsection, is the chargeable person in relation to the disposal.

(4) Where section 8 (5) of the Capital Gains Tax Act, 1975 , or section 13 (5) of the Corporation Tax Act, 1976 , has effect in respect of the disposal (not being a relevant disposal) of an asset, in an accounting period of a company, by an accountable person, then, notwithstanding any provision of the Corporation Tax Acts—

(a) any referable corporation tax in respect of any chargeable gains which accrue on the disposal shall be assessable on and recoverable from the accountable person,

(b) the referable corporation tax shall be treated as a necessary disbursement out of the proceeds of the disposal and shall be paid by the accountable person out of those proceeds, and

(c) referable corporation tax paid by the accountable person shall discharge a corresponding amount of the liability to corporation tax, for the accounting period in which the disposal is made, of the company (hereafter in this section referred to as “the company”) which, apart from this subsection, is the chargeable person in relation to the disposal.

(5) Notwithstanding any provision of the Capital Gains Tax Acts or of the Corporation Tax Acts, the amount of referable capital gains tax or referable corporation tax, as the case may be, which, under this section, is assessable on an accountable person in relation to a disposal, shall be recoverable from him by an assessment on him to income tax under Case IV of Schedule D for the year of assessment in which the disposal occurred on an amount the income tax on which at the standard rate for the said year of assessment is equal to the amount of the referable capital gains tax or referable corporation tax, as the case may be.

(6) Where tax is paid by an accountable person under the provisions of this section and it is established that the amount of tax paid is excessive, appropriate relief, by repayment or otherwise, shall be given to him.

(7) Subject to subsections (3) (c) and (4) (c), nothing in this section shall affect the amount of chargeable gains on which—

(a) the debtor is chargeable to capital gains tax, or

(b) the company is chargeable to corporation tax.

(8) In this section—

(a) in the case where no chargeable gains other than the chargeable gains mentioned in subsection (3) (a) (hereafter in this subsection referred to as “the referable gains”) accrued to the debtor in the year of assessment, “referable capital gains tax” means the amount of capital gains tax which, apart from subsection (3), would be assessable on the debtor in respect of the referable gains;

(b) in the case where, in addition to the referable gains, other chargeable gains accrued to the debtor in the year of assessment, and, in charging all of those gains to capital gains tax without regard to the provisions of subsection (3), the same rate of tax would apply, and either—

(i) none of the disposals on which the chargeable gains accrued is a relevant disposal, or

(ii) each of the disposals is a relevant disposal,

“referable capital gains tax” means an amount of tax determined by the formula—

where—

A is the amount of capital gains tax which, apart from subsection (3), would be assessable on the debtor in respect of the referable gains if no other chargeable gains accrued to him in the year of assessment and if no deductions or reliefs fell to be allowed against the referable gains,

B is the amount of capital gains tax which, apart from subsection (3), would be assessable on the debtor in respect of all chargeable gains, including the referable gains, which accrued to him in the year of assessment, if no deductions or reliefs fell to be allowed against those chargeable gains, and

C is the amount of capital gains tax which, apart from subsection (3), would be assessable on the debtor in respect of the total amount of chargeable gains, including the referable gains, which accrued to him in the year of assessment;

(c) in any other case, “referable capital gains tax” means the amount of capital gains tax which, apart from subsection (3) and taking into account—

(i) all other chargeable gains accruing to the debtor in the year of assessment, and

(ii) where appropriate, the provisions of paragraph 8 of Schedule 1 to the Capital Gains Tax (Amendment) Act, 1978 , and of sections 30 (3) and 40 of the Finance Act, 1982 ,

would be the amount of capital gains tax appropriate to the referable gains.

(9) In this section—

(a) in the case where no chargeable gains other than—

(i) the chargeable gains mentioned in subsection (4) (a) (hereafter in this subsection referred to as “the referable gains”), or

(ii) any chargeable gains accruing on a relevant disposal,

accrued to the company in the accounting period, “referable corporation tax” means the amount of capital gains tax which, apart from subsection (4), would be assessable on the company in respect of the referable gains on the assumptions that—

(I) notwithstanding any provision to the contrary in the Corporation Tax Acts, capital gains tax fell to be charged in respect of those gains in accordance with the provisions of the Capital Gains Tax Acts, and

(II) accounting periods were years of assessment,

or, if it is less, the amount of corporation tax which, apart from subsection (4), would be assessable on the company for the accounting period;

(b) in the case where, in addition to the referable gains, other chargeable gains (not being chargeable gains accruing on a relevant disposal) accrued to the company in the accounting period, and, on the assumptions made in paragraph (a), in charging all of those gains to capital gains tax without regard to the provisions of subsection (4), the same rate of tax would apply, “referable corporation tax” means an amount of tax determined by the formula—

where—

D is the amount of capital gains tax which, apart from subsection (4) and on the assumptions made in paragraph (a), would be assessable on the company in respect of the referable gains if no other chargeable gains accrued to the company in the accounting period and if no deductions or reliefs fell to be allowed against the referable gains,

E is the amount of capital gains tax which, apart from subsection (4) and on the assumptions made in paragraph (a), would be assessable on the company in respect of all chargeable gains including the referable gains (but not including chargeable gains accruing on a relevant disposal) which accrued to the company in the accounting period, if no deductions or reliefs fell to be allowed against those chargeable gains, and

F is the amount (hereafter in this subsection referred to as “the notional amount”) of capital gains tax which, apart from subsection (4), would, in accordance with section 13 (1A) (inserted by the Finance Act, 1982 ) of the Corporation Tax Act, 1976 , fall to be calculated in relation to the company for the accounting period in respect of all chargeable gains including the referable gains or, if it is less, the amount of corporation tax which, apart from subsection (4), would be assessable on the company for the accounting period;

(c) in any other case, “referable corporation tax” means the amount of capital gains tax which, apart from subsection (4) and on the assumptions made in paragraph (a), and taking into account—

(i) all other chargeable gains (not being chargeable gains accruing on a relevant disposal) accruing to the company in the accounting period, and

(ii) where appropriate, the provisions of sections 30 (3) and 40 of the Finance Act, 1982 ,

would be the amount of capital gains tax appropriate to the referable gains:

Provided that, in any case in which this paragraph applies, if the notional amount is greater than the amount of corporation tax which, apart from subsection (4), would be assessable on the company for the accounting period, “referable corporation tax” shall mean an amount determined by the formula—

where—

G is the amount which, under this paragraph apart from this proviso, would be the referable corporation tax,

H is the notional amount, and

K is the amount of corporation tax which, apart from subsection (4), would be assessable on the company for the accounting period.

(10) (a) In any case where, in calculating an amount of referable capital gains tax or referable corporation tax under subsection (8) (c) or (9) (c), deductions or reliefs fell to be allowed against chargeable gains accruing in a year of assessment or in an accounting period and, apart from this subsection, those deductions or reliefs (or part of them) would fall to be set against two or more chargeable gains chargeable at the same rate of capital gains tax, then, those deductions or reliefs (or, as the case may be, that part of them) shall, so far as is necessary to calculate the amount of referable capital gains tax or referable corporation tax, be apportioned between the chargeable gains chargeable at the same rate in proportion to the amounts of those chargeable gains.

(b) In the case of chargeable gains accruing to a company (not being chargeable gains accruing on a relevant disposal), any reference in paragraph (a) to a rate of tax shall be construed as a reference to the rate of capital gains tax which would be applicable to those gains on the assumptions made in subsection (9) (a).

PART II

Customs and Excise

Foreign travel.

57.— Section 65 of the Finance Act, 1982 , shall be amended, as on and from the 1st day of April, 1983,—

(a) in subsection (1), by the deletion of “‘aircraft’ means an aircraft suitable for the carriage of more than fifteen passengers;”,

and

(b) in subsection (3), by the substitution of the following paragraph for paragraph (b):

“(b) The rate at which the duty of excise imposed by subsection (2) of this section shall be paid shall be £5 for each person whose carriage is authorised by a passenger ticket relating to carriage by a ship or an aircraft on a voyage or a flight, as the case may be, to a destination (other than a destination in Northern Ireland) outside the State.”.

Televisions.

58.—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 10th day of February, 1983, at the several rates specified in the First Schedule in lieu of the several rates specified in the Sixth Schedule to the Imposition of Duties (No. 259) (Excise Duties) Order, 1982 (S.I. No. 48 of 1982).

Video players.

59.—The duty of excise on video players imposed by paragraph 4 of the Imposition of Duties (No. 260) (Excise Duty on Video Players) Order, 1982 (S.I. No. 49 of 1982), shall be charged, levied and paid, as on and from the 10th day of February, 1983, at the rate of £40 for each video player in lieu of the rate specified in the said paragraph 4.

Hydrocarbons.

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

(2) Notwithstanding clause (b) or (c) of paragraph 11 (5) of the Order of 1975, the duty of excise imposed by paragraph 11 (1) of the said Order shall be charged, levied and paid at the rate of £1.75 per hectolitre, as on and from the 10th day of February, 1983, on mineral hydrocarbon light oil to which the said clause (b) or (c) applies, in lieu of the rate specified in section 70 (4) of the Finance Act, 1980 .

(3) 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 £1.75 per hectolitre, as on and from the 10th day of February, 1983, on hydrocarbon oil to which the said subparagraph (6) applies in lieu of the rate specified in section 70 (5) of the Finance Act, 1980 .

(4) Paragraph 11 (7) of the Order of 1975, as amended by section 40 (3) of the Finance Act, 1976 , shall be amended, as on and from the 10th day of February, 1983, by the substitution for “£1.53” (inserted by the Finance Act, 1980 ) of “£1.75”.

(5) Any authorisation issued before the 10th day of February, 1983, 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 £1.53 per hectolitre payable under section 70 (6) of the Finance Act, 1980 , 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 £1.75 per hectolitre in lieu of payment of the duty of excise aforesaid.

(6) 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 9th day of February, 1983, be at the rate of duty paid less an amount of £1.75 per hectolitre in lieu of the rate specified in section 70 (8) of the Finance Act, 1980 .

(7) Paragraph 12 (1) of the Order of 1975, as amended by section 70 (9) of the Finance Act, 1980 , is hereby amended by the deletion of the proviso thereto.

(8) The amount of any rebate allowed under paragraph 12 (3) of the Order of 1975 shall, in respect of any hydrocarbon oil (other than fuel oil within the meaning of paragraph 3 of the Imposition of Duties (No. 256) (Excise Duty on Hydrocarbon Oils) Order, 1981 (S.I. No. 404 of 1981)) which is imported or delivered from the premises of a refiner of hydrocarbon oil or from a bonded warehouse on or after the 10th day of February, 1983, be the amount of excise duty chargeable less an amount calculated at the rate of £1.75 per hectolitre in lieu of the rate specified in section 70 (10) of the Finance Act, 1980 .

(9) The amount of any repayment allowed under section 35 (5) (b) of the Finance Act, 1981 , 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 10th day of February, 1983, be the amount of excise duty paid less an amount calculated at the rate of £1.09 per hectolitre.

(10) Section 42 (2) of the Finance Act, 1976 , shall be amended, as on and from the 10th day of February, 1983, by the substitution for “£0.07” (inserted by the Finance Act, 1980 ) of “£0.08”.

(11) Paragraph 12 (11) of the Order of 1975 is hereby amended—

(a) by the substitution for “a passenger road service in respect of which the licence was granted” of “the passenger road service” and

(b) by the substitution for “repay to the licensee” of “repay to him”.

Motor Vehicles.

61.—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, on category A motor vehicles (within the meaning of the said Order) shall be charged, levied and paid, as on and from the 1st day of July, 1983—

(a) in so far as it is chargeable on such vehicles which derive their motive power from an internal combustion engine and which exceed 16 horse-power (calculated in accordance with regulations made by the Minister for the Environment under section 1 (3) of the Finance (Excise Duties) (Vehicles) Act, 1952 , for the purpose of a rate of duty specified in the Schedule to the said Act), at the rate of an amount equal to 64.5 per cent. of the chargeable value (within the meaning aforesaid) in lieu of the rate specified in paragraph 10 of the Imposition of Duties (No. 259) (Excise Duties) Order, 1982, and

(b) in so far as it is chargeable on other such vehicles (other than motor-cycles, auto-cycles, or cycles fitted with an auxiliary motor, whether or not incorporating side-cars), at the rate of an amount equal to 54.5 per cent. of the chargeable value (within the meaning aforesaid) in lieu of the rate specified in section 7 of the Finance (No. 2) Act, 1981 .

Gaming licences.

62.—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 10th day of February, 1983, at the rates specified in the Second Schedule in lieu of the rates specified in Part III of the Seventh Schedule to the Finance Act, 1980 .

Gaming machine licences.

63.—(1) Section 74 (1) of the Finance Act, 1980 , shall, as respects the grant of gaming machine licences on or after the 10th day of February, 1983, be amended by the substitution for “£37.50”, “£75”, “£112.50” and “£150” (inserted by the Imposition of Duties (No. 259) (Excise Duties) Order, 1982 (S.I. No. 48 of 1982)) of “£62.50”, “£125”, “£187.50” and “£250”, respectively.

(2) Section 43 (7) (aa) of the Finance Act, 1975 (inserted by the Finance Act, 1980 ), shall, as respects the grant of gaming machine licences on or after the 10th day of February, 1983, be amended by the substitution for “£25”, “£50”, “£75” and “£100” (inserted by the Imposition of Duties (No. 259) (Excise Duties) Order, 1982) of “£40”, “£80”, “£120” and “£160”, respectively.

Firearm certificates.

64.—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, 1983, be charged, levied and paid at the rates specified in the Third Schedule in lieu of the rates specified in Part II of the Seventh Schedule to the Finance Act, 1980 .

Dogs.

65.—(1) Section 37 of the Finance Act, 1925 , is hereby amended by the substitution in subsection (1) of “£5” for “£1” (inserted by the Finance Act, 1975 ) and the said subsection (1), as so amended, is set out in the Table to this subsection.

TABLE

(1) On and after the 1st day of January, 1926, an excise duty (in this Act referred to as dog duty) of £5 shall be payable on every dog aged one month or upwards in respect of every year or part of a year during which such dog is kept in Saorstát Éireann.

(2) Section 33 of the Finance Act, 1963 , is hereby amended by the substitution in subsections (1) and (2) of “£100” for “£25” (inserted by the Finance Act, 1975 ) and the said subsections (1) and (2), as so amended, are set out in the Table to this subsection.

TABLE

(1) Any person who is liable to pay dog duty may elect to pay an annual sum of £100 in respect of such duty in lieu of the rate specified in subsection (1) of section 37 of the Finance Act, 1925 , and this amount shall be paid and collected through the Post Office by means of a general licence to be taken out annually by such person.

(2) Any person who pays a sum of £100 and takes out a general licence in accordance with this section shall be deemed to have paid dog duty in respect of all dogs kept by him during the whole or any part of the year to which the general licence relates.

(3) Section 44 (3) of the Finance Act, 1975 , is hereby repealed and in lieu thereof it is hereby enacted that any person guilty of an offence under section 37 of the Finance Act, 1925 , shall be liable on summary conviction to an excise penalty of £20.

(4) This section shall come into operation on the 1st day of January, 1984.

Auctioneers and house agents.

66.—(1) In this section “the Act” means the Auctioneers and House Agents Act, 1947 .

(2) The duty of excise on an auctioneer's licence (within the meaning of the Act) imposed by section 11 of the Finance Act, 1947 , shall be charged, levied and paid at the rate of £125 in lieu of the rate specified at reference number 1 in Part IV of the Seventh Schedule to the Finance Act, 1980 .

(3) The duty of excise on an auction permit (within the meaning of the Act) imposed by section 12 of the Finance Act, 1947 , shall be charged, levied and paid at the rate of £125 in lieu of the rate specified at reference number 2 in Part IV of the Seventh Schedule to the Finance Act, 1980 .

(4) Section 6 of the Act is hereby amended by the substitution in subsection (3) of “£500” for “one hundred pounds” and the said subsection (3), as so amended, is set out in the Table to this subsection.

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(3) A person who, in contravention of this section carries on or holds himself out or represents himself as carrying on the business of auctioneer or conducts an auction shall be guilty of an offence under this section and shall be liable on summary conviction thereof to an excise penalty of £500.

(5) The duty of excise on a house agent's licence (within the meaning of the Act) imposed by section 13 of the Finance Act, 1947 , shall be charged, levied and paid at the rate of £62.50 in lieu of the rate specified at reference number 3 in Part IV of the Seventh Schedule to the Finance Act, 1980 .

(6) Section 7 of the Act is hereby amended by the substitution in subsection (3) of “£500” for “one hundred pounds” and the said subsection (3), as so amended, is set out in the Table to this subsection.

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(3) A person who, in contravention of this section carries on or holds himself out or represents himself as carrying on the business of house agent or acts as a house agent shall be guilty of an offence under this section and shall be liable on summary conviction thereof to an excise penalty of £500.

(7) This section shall come into operation on the 6th day of July, 1983.

Bookmakers.

67.—(1) The duty of excise imposed by section 17 of the Finance Act, 1931 , on a bookmaker's licence issued under the Betting Act, 1931 , shall be charged, levied and paid, as on and from the 1st day of December, 1983, at the rate of £125 in lieu of the rate specified at reference number 4 in Part IV of the Seventh Schedule to the Finance Act, 1980 .

(2) The duty of excise imposed by section 18 of the Finance Act, 1931 , on the registration, or on the renewal of the registration, under the Betting Act, 1931 , of any premises in which the business of bookmaking is carried on shall be charged, levied and paid, as on and from the 1st day of December, 1983, at the rate of £125 in lieu of the rate specified at reference number 5 in Part IV of the Seventh Schedule to the Finance Act, 1980 .

Repayment of excise duty on licences not used.

68.—(1) In this section “licence” shall be construed as including permit and certificate.

(2) Where it is shown to the satisfaction of the Revenue Commissioners in respect of a licence to which subsection (4) of section 77 of the Finance Act, 1980 , relates that either—

(a) no trading took place under the licence, or

(b) the holder of the licence did not engage in the activity to which the licence relates during the period of validity of the licence,

the Commissioners may, subject to compliance with such conditions as they may think fit to impose and notwithstanding the provisions of subsection (6) of the said section 77, repay the duty of excise paid on the said licence.

Amendment of section 50 (penalty for the wholesale dealing in or the sale by retail of intoxicating liquor without a licence) of Finance (1909-10) Act, 1910.

69.— Section 50 of the Finance (1909-10) Act, 1910 , is hereby amended—

(a) by the substitution in subsection (2) of “£500” for “one hundred pounds”, and

(b) by the substitution in subsection (3) of “£500” for “fifty pounds”,

and the said subsections (2) and (3), as so amended, are set out in the Table to this section.

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(2) If any person deals wholesale in any intoxicating liquor, for the wholesale dealing in which he is required to take out a licence under this Act, without taking out such a licence, he shall be liable in respect of each offence to an excise penalty of £500.

(3) If any person sells by retail any intoxicating liquor, for the retail sale of which he is required to take out a licence under this Act, without taking out such a licence, he shall be liable in respect of each offence to an excise penalty of £500.

Amendment of section 21 (duties on hydrocarbon oils) of Finance Act, 1935.

70.—(1) Subsection (12) (inserted by the Finance Act, 1940 ) of section 21 of the Finance Act, 1935 , is hereby amended—

(a) by the substitution of “£1,000 and the oil in respect of which the offence was committed shall be liable to forfeiture” for “£500 and the oil in respect of which the offence was committed shall be forfeited” (inserted by the Finance Act, 1976 ),

(b) by the substitution in paragraph (i) (inserted by the Finance Act, 1976 ) of “this section” for “the section”,

(c) by the substitution of the following paragraph for paragraph (ii) (inserted by the Finance Act, 1976 ):

“(ii) if—

(I) a concealed tank or other container, or

(II) any device, contrivance or method of any kind,

is employed to conceal the presence in the vehicle of hydrocarbon oil intended for use for combustion in the engine of the vehicle in contravention of this section,”,

and

(d) by the substitution of “the vehicle shall be liable to forfeiture” for “the vehicle shall be forfeited” (inserted by the Finance Act, 1976 ),

and so much of the said subsection (12), as so amended, as follows paragraph (e) thereof is set out in the Table to this subsection.

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such person shall be guilty of an offence under this section and shall be liable to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000 and the oil in respect of which the offence was committed shall be liable to forfeiture and, in the case of an offence involving a motor vehicle—

(i) if it is a second or subsequent offence under this section by the person, or

(ii) if—

(I) a concealed tank or other container, or

(II) any device, contrivance or method of any kind,

is employed to conceal the presence in the vehicle of hydrocarbon oil intended for use for combustion in the engine of the vehicle in contravention of this section,

the vehicle shall be liable to forfeiture.

(2) Section 21 (15) of the Finance Act, 1935 , is hereby amended by the insertion in the definition of “motor vehicle” (inserted by the Finance Act, 1942) after “road roller” of “or a vehicle referred to in paragraph 4B (inserted by the Finance Act, 1983) of Part I of the Schedule to the Finance (Excise Duties) (Vehicles) Act, 1952 ”, and the said definition, as so amended, is set out in the Table to this subsection.

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the expression “motor vehicle” means a mechanically propelled vehicle which is designed, constructed, and suitable for use on roads, but does not include a tractor which is designed and constructed for use for agricultural purposes or a road roller or a vehicle referred to in paragraph 4B (inserted by the Finance Act, 1983) of Part I of the Schedule to the Finance (Excise Duties) (Vehicles) Act, 1952 .

Amendment of section 23 (forfeiture) of Finance Act, 1946.

71.— Section 23 of the Finance Act, 1946 , is hereby amended—

(a) in paragraph (i), by the substitution of “liable to forfeiture” for “forfeited”,

(b) in paragraph (ii), by the substitution of “the sum of £1,000” for “either treble the value of all such goods or articles or the sum of one hundred pounds, at the election of the Revenue Commissioners”, and

(c) by the addition of the following subsection:

“(2) Where a duty of excise chargeable on any goods is not paid at the time at which payment thereof becomes due or within such longer period as may be permitted for payment by or under any enactment, the goods shall be liable to forfeiture.”,

and the said paragraphs (i) and (ii), as so amended, are set out in the Table to this section.

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(i) all such goods and articles and all such materials, utensils and vessels respectively shall be liable to forfeiture,

(ii) every person who removes, deposits, or conceals or is concerned in removing, depositing, or concealing, any such goods or articles, with intent to defraud the Minister for Finance of such duty or any part thereof, shall forfeit the sum of £1,000.

Amendment of section 34 (amendments relative to penalties) of Finance Act, 1963.

72.— Section 34 of the Finance Act, 1963 , is hereby amended—

(a) in subsection (4)—

(i) in paragraph (c) (i), by the substitution of “£1,000” for “£500” (inserted by the Finance Act, 1976 ),

(ii) in paragraph (d) (ii), by the substitution of “£1,000” for “£500” (inserted by the Finance Act, 1976 ),

and

(b) in subsection (5), by the substitution of “£1,000” for “£500” (inserted by the Finance Act, 1976 ),

and the said paragraphs (c) (i) and (d) (ii) and subsection (5), as so amended, are set out in the Table to this section.

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(c) (i) in case treble the estimated value exceeds £1,000, the offence shall be tried on indictment, and,