No. 18/1938:

COLLECTION OF TAXES (CONFIRMATION) ACT, 1938

ARRANGEMENT OF SECTIONS

1 The Act of 1927.

2 Financial Resolutions to which this Act applies.

3 Statutory effect of the Financial Resolutions.

4 Exclusion of certain provisions of the Act of 1927.

5 Deductions of and assessments to income tax.

6 Application of section 211 of the Income Tax Act, 1918.

7 Short title.

AN ACT TO GIVE STATUTORY EFFECT TO CERTAIN FINANCIAL RESOLUTIONS PASSED ON THE 12TH DAY OF MAY, 1938, BY DÁIL EIREANN IN COMMITTEE ON FINANCE AND TO MAKE PROVISION FOR OTHER MATTERS RELATING TO OR CONNECTED WITH THE SAID FINANCIAL RESOLUTIONS.

[14th July, 1938.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

1.—In this Act the expression "the Act of 1927" means the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

2.—This Act applies to the seven Financial Resolutions which—

( a ) were passed by Dáil Eireann in Committee on Finance on the 12th day of May, 1938, and

( b ) were given statutory effect under the Act of 1927, and

( c ) were agreed to (subject, in the case of No. 3 of the said Resolutions, to one amendment) by Dáil Eireann on the 25th day of May, 1938.

3.—(1) Every of the Financial Resolutions to which this Act applies shall, notwithstanding anything contained in the Act of 1927, have and be deemed always to have had statutory effect as if contained in an Act of the Oireachtas, and shall continue to have such statutory effect until such cesser as is provided for by the next following sub-section of this section.

(2) Every of the Financial Resolutions to which this Act applies shall cease to have statutory effect upon the happening of whichever of the following events shall first occur, that is to say:—

( a ) the coming into operation of an Act of the Oireachtas containing provisions to the same effect (with or without modification) as such Financial Resolution, or

( b ) the expiration of four months from the passing of this Act.

(3) When a Financial Resolution to which this Act applies ceases, by virtue of the next preceding sub-section of this section, to have statutory effect, such cesser shall not prejudice or affect anything done or any liability or obligation incurred under or by virtue of such Financial Resolution before such cesser.

4.—(1) Sub-section (1) of section 5 of the Act of 1927 shall not apply or have effect, and shall be deemed never to have applied or had effect, in relation to a Financial Resolution to which this Act applies.

(2) Section 6 of the Act of 1927 shall not apply or have effect, and shall be deemed never to have applied or had effect, in relation to the income tax for the year beginning on the 6th day of April, 1938.

5.—(1) Every deduction made before the passing of this Act in respect of the income tax for the year beginning on the 6th day of April, 1938, which would have been a lawful deduction if Nos. 1 and 2 of the Financial Resolutions to which this Act applies had been in force and had had statutory effect when such deduction was made, shall be and be deemed always to have been a lawful deduction.

(2) Every assessment to income tax for the year beginning on the 6th day of April, 1938, made before the passing of this Act which would have been a lawful and valid assessment if Nos. and 2 of the Financial Resolutions to which this Act applies had been in force and had had statutory effect when such assessment was made, shall be and be deemed always to have been a lawful and valid assessment.

6.—(1) Section 211 (which relates to charge and deduction of tax in any year not charged or deducted before the passing of the annual Act) of the Income Tax Act, 1918, shall, in relation to the income tax for the year beginning on the 6th day of April, 1938, have effect subject to the following modifications, that is to say:—

( a ) the words "half-yearly or quarterly" contained in sub-section (1) of the said section shall be omitted;

( b ) the words "or the person by or through whom the payments were made, as the case may be" shall be inserted in the said sub-section (1) after the words "the agents entrusted with the payment of the interest, dividends, or other annual profits or gains";

( c ) sub-section (2) of the said section shall apply with respect to—

(i) any royalty or other sum paid in respect of the user of a patent from which a deduction of tax may be made under paragraph 2 of Rule 19 of the General Rules applicable to all the Schedules of the Income Tax Act, 1919, and

(ii) any dividend from which a deduction of tax may be made under Rule 20 of the said General Rules,

as it applies to any rent, interest, annuity, or other annual payment.

(2) Where, before the passing of this Act, a deduction was made in respect of the income tax for the year beginning on the 6th day of April, 1938, and the amount of such deduction was refunded on account of the operation of the provisions of the Act of 1927, such deduction shall, for the purposes of section 211 of the Income Tax Act, 1918, (as modified by the foregoing sub-section of this section), be deemed never to have been made and that section (as so modified) shall apply and have effect accordingly.

7.—This Act may be cited as the Collection of Taxes (Confirmation) Act, 1938 .