Auctioneers and House Agents Act, 1947	1947, No. 10
Bankers' Books Evidence Acts, 1879 and 1959
Betting Act, 1931	1931, No. 27
Capital Acquisitions Tax Act, 1976	1976, No. 8
Capital Gains Tax Act, 1975	1975, No. 20
Capital Gains Tax (Amendment) Act, 1978	1978, No. 33
Central Bank Act, 1971	1971, No. 24
Central Fund (Permanent Provisions) Act, 1965	1965, No. 26
Corporation Tax Act, 1976	1976, No. 7
Criminal Procedure Act, 1967	1967, No. 12
Finance (1909-10) Act, 1910	1910, c. 8
Finance Act, 1922	1922, c. 17
Finance Act, 1925	1925, No. 28
Finance Act, 1926	1926, No. 35
Finance Act, 1931	1931, No. 31
Finance Act, 1933	1933, No. 15
Finance Act, 1935	1935, No. 28
Finance Act, 1940	1940, No. 14
Finance Act, 1946	1946, No. 15
Finance Act, 1947	1947, No. 15
Finance Act, 1950	1950, No. 18
Finance Act, 1956	1956, No. 22
Finance Act, 1961	1961, No. 23
Finance Act, 1963	1963, No. 23
Finance Act, 1964	1964, No. 15
Finance Act, 1967	1967, No. 17
Finance Act, 1968	1968, No. 33
Finance Act, 1970	1970, No. 14
Finance Act, 1971	1971, No. 23
Finance Act, 1972	1972, No. 19
Finance Act, 1973	1973, No. 19
Finance Act, 1974	1974, No. 27
Finance Act, 1975	1975, No. 6
Finance Act, 1976	1976, No. 16
Finance Act, 1977	1977, No. 19
Finance Act, 1978	1978, No. 21
Finance Act, 1979	1979, No. 11
Finance Act, 1980	1980, No. 14
Finance Act, 1981	1981, No. 16
Finance (No. 2) Act, 1981	1981, No. 28
Finance Act, 1982	1982, No. 14
Finance (Excise Duties) (Vehicles) Act, 1952	1952, No. 24
Firearms Act, 1964	1964, No. 1
Gaming and Lotteries Act, 1956	1956, No. 2
Income Tax Act, 1967	1967, No. 6
Inland Revenue Regulation Act, 1890	1890, c. 21
Official Secrets Act, 1963	1963, No. 1
Probation of Offenders Act, 1907	1907, c. 17
Provisional Collection of Taxes Act, 1927	1927, No. 7
Road Traffic Act, 1961	1961, No. 24
Succession Duty Act, 1853	1853, c. 51
Value-Added Tax Act, 1972	1972, No. 22
Value-Added Tax (Amendment) Act, 1978	1978, No. 34
Youth Employment Agency Act, 1981	1981, No. 32

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 of taxable income	Rate of tax		Description of rate
(1)	(2)		(3)
The first £1,000	25 per cent.		the reduced rate
The next £3,000	35 per cent.		the standard rate
The next £2,000	45 per cent.	}	the higher rates
The next £2,000	55 per cent.
The next £2,000	60 per cent.
The remainder	65 per cent.

PART II

Part of taxable income	Rate of tax
(1)	(2)
The first £2,000	25 per cent.
The next £6,000	35 per cent.		the standard rate
The next £4,000	45 per cent.	}	the higher rates
The next £4,000	55 per cent.
The next £4,000	60 per cent.
The remainder	65 per cent.

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 1 (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—

[image not available: a15y1983s6-1.bmp]

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 "£12W for "£150", in each place where it occurs, and of "£5W for "£70",

( b ) by the substitution in subsection (2) (inserted by the Finance Act, 1980 ) of "£120" for "£15V and of "£5W 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) 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 "£2W 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—

(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,

( 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, 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 valve 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 failing to be treated as having been incurred in t e 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 VIII 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 no 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.

Restriction 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 company on any investments if a profit on the sale of those investment 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 inspect may make such assessments, adjustments or set-offs as may in his judgment be required for securing that the resulting liabilities to the (including interest on unpaid tax) of the company paying and the company receiving the dividend are, so far as possible, the same they would have been if the advance corporation tax had been du paid.

(4) Where tax assessed under subsection (3) on the company which paid the dividend is not paid by that company before the expiry 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 app 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 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, 197 shall, with any necessary modifications, have effect for the purpose of this section as they have effect for the purposes of section 105 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 service 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 Schedule 8 to the Income Tax Act, 1967 ;

a company shall be regarded as being a resident of territory other than the United States of America it is so regarded under the provisions of arrangement 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 made and shall require the consent, notified to the inspector in such form as the Revenue Commissioners may require, of the company which the distribution is made.

(4) Subsection (1) of section 361 of the Income Tax Act, 1967 , 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 relation to affording relief from double taxation in respect of income tax 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 arrangement 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 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 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 judgement; 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 judgement 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 advanced corporation tax which a company shall be liable to pay in respect of distributors made by it in accounting period ending on or before the 8th day of February 1984, shall be on behalf 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 the 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—

[image not available: a15y1983s56-1.bmp]

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—

[image not available: a15y1983s56-2.bmp]

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—

[image not available: a15y1983s56-3.bmp]

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 197 5, 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", "£1.25", "£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 "£1.00" (inserted by the Imposition of Duties (No. 259) (Excise Duties) Order, 1982) of "£40",£80" and "£120" and "£1 60", 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.

TABLE

(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.

TABLE

(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.

TABLE

(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.

TABLE

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.

TABLE

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.

TABLE

(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.

TABLE

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

( d ) (ii) where treble the value so determined exceeds £1,000, the offence shall be tried on indictment,

(5) An offence under any enactment of the Customs Acts, other than an enactment referred to in the foregoing subsections of this section, shall he tried on indictment if the penalty exceeds or may exceed £1,000.

Excise duties on licences for mechanically propelled vehicles.

73.—(1) In this section "the Act" means the Finance (Excise Duties) (Vehicles) Act, 1952 .

(2) The Act shall, as respects licences under section 1 of the Act for periods beginning on or after the 1st day of April, 1983, be amended—

( a ) by the substitution in section 1 (2) (b) of "forty pounds or less" for "thirty pounds or less" (inserted by the Finance Act, 1982 ),

( b ) by the substitution in paragraph 1 of Part I of the Schedule thereto of "£5" "£11", "£18" "£26", "£33", "£6", "£28", "£21" and "£7 for "£4" "£10" "£16" "£24", "£30" "£5", "£25", "£19" and "£6" respectively,

( c ) by the substitution in paragraph 4 of Part I of the Schedule thereto of—

(i) "£15" for "£10" (inserted by the Finance Act, 1980 ) in subparagraph (a),

(ii) "£15" for "£10" (inserted by the Finance Act, 1980 ) in subparagraph (b) (inserted by the Finance Act, 1973 ),

(iii) "£15" for "£10" (inserted by the Finance Act, 1980 ) in subparagraph (c) (inserted by the Finance Act, 1973 ), and

(iv) "£75" for "£50" in paragraph (d) (inserted by the Finance Act, 1973 ),

( d ) by the substitution in paragraph 4A (inserted by the Finance Act, 1961 ) of Part I of the Schedule thereto of "£10" "£20" "£30" and "£40" for "£5" "£10", "£15" and "£20" respectively,

( e ) by the substitution in Part I of the Schedule thereto (as amended by section 93 of the Finance Act, 1973 ) of the following paragraph for paragraph 5:

"5. Vehicles (including tricycles weighing more than 8 cwt. unladen) constructed or adapted for use and used for the conveyance of goods or burden of any other description in the course of trade or business (including agriculture and the performance by a local or public authority of its functions) and vehicles constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement by or in which goods being conveyed by such vehicles are processed or manufactured while the vehicles are in motion:

( a ) being vehicles which are electrically propelled and which do not exceed 25 cwt. in weight unladen	£22
( b ) being vehicles which are not such electrically propelled vehicles as aforesaid—
(i) not exceeding 12 cwt. in weight unladen	£28
(ii) exceeding 12 cwt. but not exceeding 16 cwt. in weight unladen	£34
(iii) exceeding 16 cwt. but not exceeding 1 ton in weight unladen	£41
(iv) exceeding 1 ton but not exceeding 2 tons in weight unladen	£41, plus £7 for each quarter-ton, 1 or part thereof, of weight unladen in excess of 1 ton
(v) exceeding 2 tons but not exceeding 3 tons in weight unladen	£69, plus £8 for each quarter-ton, or part thereof, of weight unladen in excess of 2 tons
(vi) exceeding 3 tons but not exceeding 4 tons in weight unladen	£101, plus £10 for each quarter-ton, or part thereof, of weight unladen in excess of 3 tons
(vii) exceeding 4 tons but not exceeding 5 tons in weight unladen	£141, plus £10 for each quarter-ton, or part thereof, of weight unladen in excess of 4 tons
(viii) exceeding 5 tons but not exceeding 6 tons in weight unladen	£181, plus £17 for each quarter-ton, or part thereof, of weight unladen in excess of 5 tons
(ix) exceeding 6 tons in weight unladen	£249, plus £22 for each quarter-ton, or part thereof, of weight unladen in excess of 6 tons

with an additional duty, in the case of any vehicle used for drawing a trailer, of—

(I) where the vehicle does not exceed 2 tons in weight unladen	£15
(II) where the vehicle exceeds 2 tons but does not exceed 3 tons in weight unladen	£20
(III) where the vehicle exceeds 3 tons but does not exceed 4 tons in weight unladen	£26
(IV) where the vehicle exceeds 4 tons but does not exceed 5 tons in weight unladen	£35
(V) where the vehicle exceeds 5 tons but does not exceed 6 tons in weight unladen £46	£46
(VI) where the vehicle exceeds 6 tons in weight unladen	£59",

( f ) by—

(i) the substitution in subparagraph (c) of paragraph 6 of Part I of the Schedule thereto of "£16" and "£2" for "£8" and "£1" respectively, and

(ii) the substitution in subparagraph (cc) (inserted by the Finance Act, 1961 ) of the said paragraph 6 of "£16" and "£2" for "£8" and "£1" respectively,

( g ) by the insertion of the following subparagraph before subparagraph (d) of the said paragraph 6 of Part I of the Schedule thereto:

"( ccc ) any vehicle which is used as a hearse and for no other purpose—

not exceeding 8 horse-power or electrically propelled	£26
exceeding 8 horse-power but not exceeding 9 horse-power	£29
exceeding 9 horse-power but not exceeding 10 horse-power	£33
exceeding 10 horse-power but not exceeding 11 horse-power	£39
exceeding 11 horse-power	£44".

( 3 ) ( a ) Subject to paragraphs (b) and (c)of this subsection, the Act shall, as respects licences under section 1 of the Act taken out for periods beginning on or after the 1st day of April, 1983, be further amended by the substitution in Part I of the Schedule thereto (as amended by section 71 of the Finance Act, 1982 ) of the following subparagraph for subparagraph (d) of paragraph 6:

"( d ) other vehicles to which this paragraph applies—

not exceeding 8 horse-power	£7 for each unit or part of a unit of horse-power
exceeding 8 horse-power and not exceeding 12 horse-power	£9 for each unit or part of a unit of horse-power
exceeding 12 horse-power and not exceeding 16 horse-power	£11 for each unit or part of a unit of horse-power
exceeding 16 horse-power and not exceeding 20 horse-power	£13 for each unit or part of a unit of horse-power
exceeding 20 horse-power	£14 for each unit or part of a unit of horse-power
electrically propelled	£46".

( b ) Paragraph (a) of this subsection shall not have effect in relation to any vehicle—

(i) which is used as a small public service vehicle within the meaning of the Road Traffic Act, 1961 , and for no other purpose, or

(ii) which is fitted with a taximeter and is lawfully used as a street service vehicle within the meaning of the said Road Traffic Act, 1961 , or for purposes incidental to such user and for no other purpose.

( c ) Paragraph (a) of this subsection shall not have effect in relation to vehicles specified in Article 3 of the Imposition of Duties (No. 170) (Excise Duties) (Vehicles) Order, 1968 ( S.I. No. 68 of 1968 ), as amended by the Imposition of Duties (No. 216) (Excise Duties) (Vehicles) Order, 1975 ( S.I. No. 5 of 1975 ).

( 4 ) ( a ) The Act shall be further amended by the insertion in Part I of the Schedule after paragraph 4A (inserted by the Finance Act, 1961 ) of the following paragraph:

"4B Vehicles (commonly known as 'off-road dumpers') exceeding 4 cubic yards in capacity, level loaded, designed and constructed primarily for use on sites of construction works (including road construction and house and other building works) for the purpose of conveying concrete, rubble, earth or other like materials and incapable by reason of their design and construction of exceeding a speed of 30 miles per hour on a level road under their own power and which are the subject of special permits under article 17 of the Road Traffic (Construction, Equipment and Use of Vehicles) Regulations 1963, ( S.I. No. 190 of 1963 ) £250.".

( b ) The appropriate repayments shall be made having regard to the foregoing provisions of this subsection and the repayments shall be made in accordance with such directions as may be given by the Minister for the Environment.

( c ) This subsection shall come into operation on such day as may be fixed therefor by order made by the Minister for the Environment.

( 5 ) ( a ) Section 94 (2) of the Finance Act, 1973 , shall be amended—

(i) by the substitution of "2" for "£1" in paragraph (a) (inserted by the Finance (No. 2) Act, 1981 ),

(ii) by the substitution of "£10" for "£5" in subparagraph (aa) (inserted by the Finance (No. 2) Act, 1981 ),

(iii) by the substitution of "£40" for "£20" in paragraph (c) (inserted by the Finance Act, 1981 ), and

(iv) by the substitution of "£20" for "£10" in paragraph (d) (inserted by the Finance Act, 1981 ).

( b ) Paragraph (a) of this subsection shall have effect in respect of vehicles in relation to which licences under section 1 of the Act are taken out for periods beginning on or after the 1st day of April, 1983.

Increase of excise duty on driving licences.

74.—The Finance (Excise Duties) (Vehicles) Act, 1952 , shall, as on and from the 1st day of April, 1983, be amended by the substitution in section 4 (1A) (inserted by the Finance Act, 1961 ) of the following paragraphs for paragraphs (a) and (b):

"( a ) four pounds if the period of the licence is one year, and

( b ) four pounds for each year of the period of the licence if that period is two or more years,".

Increase of excise duties on motor vehicle trade licences.

75.—Section 15 (2) of the Finance Act, 1922, shall, as applied by section 3 of the Finance (Excise Duties) (Vehicles) Act, 1952 , and notwithstanding the terms of the latter section, have effect, as respect licences to which the said section 15 (2) applies taken out on or after the 1st day of January, 1984, as if—

( a ) "£200" were substituted for "£100" (inserted by the Finance Act, 1980 ) in paragraph (a),

( b ) "£40" were substituted for "£20" (inserted by the said Finance Act, 1980 ) in paragraphs (a) and (b), and

( c ) "£8" were substituted for "£4" (inserted by the said Finance Act, 1980 ) in paragraph (b).

Confirmation of Orders.

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

TABLE

S.I. No. 22 of 1982	Imposition of Duties (No. 257) (Beer) Order, 1982.
S.I. No. 37 of 1982	Imposition of Duties (No. 258) (Beer) (No. 2) Order 1982.
S.I. No. 9 of 1983	Imposition of Duties (No. 261) (Excise Duties Order, 1983.
S.I. No. 42 of 1983	Imposition of Duties (No. 263) (Excise Duties) (No. 2) Order, 1983,
S.I. No. 85 of 1983	Imposition of Duties (No. 264) (Hydrocarbons Order, 1983.

PART III VALUE-ADDED TAX

Interpretation (Part III).

77.—In this Part—

"the Principal Act" means the Value-Added Tax Act, 1972 ;

"the Act of 1976" means the Finance Act, 1976 ;

"the Act of 1978" means the Value-Added Tax (Amendment) Act, 1978 ;

"the Act of 1981" means the Finance (No. 2) Act, 1981 ;

"the Act of 1982" means the Finance Act, 1982 .

Amendment of section 3 (delivery of goods) of Principal Act.

78.—Section 3 of the Principal Act is hereby amended by the insertion after subsection (6) of the following subsection:

"(7) (i) Where, in the case of a business carried on, or that has ceased to be carried on, by a taxable person, goods forming part of the assets of the business are, under any power exercisable by another person, including a liquidator and a receiver, disposed of by the other person in or towards the satisfaction of a debt owed by the taxable person, or in the course of the winding-up of a company, they shall be deemed to be supplied by the taxable person in the course or furtherance of his business.

(ii) A disposal of goods under this subsection shall include any disposal which is deemed to be a supply of immovable goods under section 4 (2).".

Amendment of section 8 (accountable persons) of Principal Act.

79.—Section 8 of the Principal Act is hereby amended—

( a ) in subsection (3) (inserted by the Act of 1978)—

(i) in paragraph (b) (inserted by the Act of 1982), by the substitution of "£12,000" for "£15,000",

(ii) in paragraph (c) (inserted by the Act of 1981), by the substitution of "£25,000" for "£30,000", and

(iii) in paragraph (e) (inserted by the Act of 1981), by the substitution of "£12,000" for "£15,000",

( b ) in subsection (3A) (inserted by the Act of 1982), by the substitution of "£12,000" for "£15,000", and

( c ) in subsection (9), in the definition of "farmer" (inserted by the Act of 1982), by the substitution of "£12,000" for "£15,000" in each place where it occurs.

Amendment of section 9 (registration) of Principal Act.

80.—Section 9 of the Principal Act is hereby amended—

( a ) in subsection (1), by the insertion after "taxable persons" of "or who are persons who dispose of goods which pursuant to section 3 (7) are deemed to be supplied by a taxable person in the course or furtherance of his business", and

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

"(2A) Every person who disposes of goods which pursuant to section 3 (7) are deemed to be supplied by a taxable person in the course or furtherance of his business shall, within fourteen days of such disposal, furnish in writing to the Revenue Commissioners the particulars specified in regulations as being required for the purpose of registering such person for tax.".

Amendment of section 11 (rates of tax) of Principal Act.

81.—(1) Section 11 of the Principal Act is hereby amended—

( a ) in subsection (1)—

(i) in paragraph (a) (inserted by the Act of 1978), by the substitution of "23 per cent." for "18 per cent." (inserted by the Act of 1982), and

(ii) in paragraph (c) (inserted by the Finance Act, 1980 ), by the substitution of "35 per cent." for "30 per cent." (inserted by the Act of 1982),

and

( b ) in subsection (2)—

(i) in paragraph (a) (inserted by the Act of 1978), as respects supplies on or after the 1st day of July, 1983, by the substitution of "8.69 per cent." for "10 per cent.",

(ii) in paragraph (b) (inserted by the Act of 1978), by the substitution of "21.74 per cent." for "16.67 per cent." (inserted by the Act of 1982),

(iii) in paragraph (c) (inserted by the Act of 1981), by the substitution of "21.74 per cent." for "16.67 per cent." (inserted by the Act of 1982),

(iv) in paragraph (d) (inserted by the Act of 1982), by the substitution of "21.74 per cent." for "16.67 per cent.", and

(v) in paragraph (e) (inserted by the Act of 1982), by the substitution of "21.74 per cent." for "16.67 per cent.".

(2) Section 11 of the Principal Act is hereby further amended—

( a ) in subsection (1)—

(i) by the insertion of the following paragraph after paragraph (a):

"( aa ) 5 per cent. of the amount on which tax is chargeable in relation to the supply of goods or services of a kind specified in the Sixth Schedule,",

and

(ii) in paragraph (c), by the substitution of "any of the rates specified in paragraphs (a), (aa) and (b)" for "either of the rates specified in paragraphs (a) and (b)",

( b ) in subsection (2), by the deletion of paragraphs (b), (c), (d) and (e),

( c ) in subsection (7) (inserted by the Act of 1976), by the insertion in paragraph (e) (i) after "subsection (1) (a)" of "subsection (1) (aa)", and

( d ) in subsection (8), by the substitution in paragraph (a) (inserted by the Finance Act, 1973 ) of "Second, Third or Sixth Schedule" for "Second or Third Schedules".

Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

82.—Section 12A (inserted by the Act of 1978) of the Principal Act is hereby amended—

( a ) as respects supplies on or after the 1st day of March, 1983, by the substitution in subsection (1) of "2.3 per cent." for "1.8 per cent." (inserted by the Act of 1982), and

( b ) as respects supplies on or after the 1st day of July, 1983, by the substitution in the said subsection (1) of "2 per cent." for "2.3 per cent." (inserted by paragraph (a)).

Amendment of section 15 (charge of tax on imported goods) of Principal Act.

83.—Section 15 of the Principal Act is hereby amended—

( a ) in subsection (1), by the insertion after paragraph (a) of the following paragraph:

"( aa ) on goods of a kind specified in the Sixth Schedule at the percentage specified in section 11 (1) (aa) of the value of the goods, and",

and

( b ) in subsection (4), as respects importations on or after the 1st day of July, 1983, by the substitution of "8.69 per cent." for "10 per cent.".

Amendment of section 19 (tax due and payable) of Principal Act.

84.—Section 19 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (3):

"(3) ( a ) Subject to paragraph (b), a taxable person shall, within 9 days immediately after the tenth day of the month immediately following a taxable period, furnish to the Collector-General a true and correct return prepared in accordance with regulations of the amount of tax which became due by him during the taxable period, not being tax already paid by him in relation to goods imported by him, and the amount, if any, which may be deducted in accordance with section 12 in computing the amount of tax payable by him in respect of such taxable period and such other particulars as may be specified in regulations, and shall at the same time remit to the Collector-General the amount of tax, if any, payable by him in respect of such taxable period.

( b ) A person who disposes of goods which pursuant to section 3 (7) are deemed to be supplied by a taxable person in the course or furtherance of his business—

(i) shall within 9 days immediately after the tenth day of the month immediately following a taxable period furnish to the Collector-General a true and correct return, prepared in accordance with regulations, of the amount of tax which became due by such taxable person in relation to the disposal, and such other particulars as may be specified in regulations, and shall at the same time remit to the Collector-General the amount of tax payable in respect of the taxable period in question,

(ii) shall send to the person whose goods were disposed of a statement containing such particulars as may be specified in regulations, and

(iii) shall treat the said amount of tax as a necessary disbursement out of the proceeds of the disposal.

( c ) The owner of goods which pursuant to section 3 (7) are deemed to be supplied by a taxable person in the course or furtherance of his business shall exclude from any return, which he is or, but for this subparagraph, would be, required to furnish under this Act, the tax payable in accordance with paragraph (b).".

Amendment of section 25 (appeals of Principal Act.

85.—Section 25 (2) of the Principal Act is hereby amended—

( a ) by the substitution of the following paragraphs for paragraph (f):

"( f ) the determination of an appeal through the failure of a person who has given notice of appeal to attend before the Appeal Commissioners at the time and place appointed;

( ff ) the refusal of an application for the adjournment of any proceedings in relation to an appeal, and the dismissing of an appeal, by the Appeal Commissioners;",

and

( b ) by the substitution of "shall, subject to the modifications set out hereunder and to other necessary modifications, apply to a claim under section 22 or an appeal under section 11 (1B) or 23 or this section as if the claim or appeal were an appeal against an assessment to income tax:

(i) a reference to a year of assessment shall include a reference to the taxable periods concerned,

(ii) a reference to a return of income shall include a reference to a return required to be made under section 19,

(iii) a reference to interest shall include a reference to interest payable under section 21"

for the words from paragraph (k) to the end of the section.

Amendment of Second Schedule to Principal Act.

86.—The Second Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended by the substitution of the following paragraph for paragraph (xx):

"(xx) ( a ) electricity,

( b ) wax candles and night-lights which are white and cylindrical, excluding candles and night-lights which are decorated, spiralled, tapered or perfumed.".

Amendment of Third Schedule to Principal Act.

87.—The Third Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended—

( a ) in Part I—

(i) in paragraph (ix), by the deletion of "atlases",

(ii) by the deletion of paragraph (xii), and

(iii) by the insertion in paragraphs (xxiii) and (xxiv) after "Schedule" of "or paragraph (i) of the Sixth Schedule", and

( b ) in Part II, by the substitution of the following paragraph for paragraph (i):

"(i) Services other than—

( a ) the hiring or letting of goods,

( b ) services of a kind specified in the Sixth Schedule;".

Insertion of Sixth Schedule in Principal Act.

88.—The Principal Act is hereby amended by the insertion after the Fifth Schedule of the following Schedule:

"SIXTH SCHEDULE

GOODS AND SERVICES CHARGEABLE AT THE RATE SPECIFIED IN SECTION 11 (1) (aa)

(i) ( a ) Coal, peat and other solid substances, held out for sale solely as fuel,

( b ) gas of a kind used for domestic or industrial heating or lighting, whether in gaseous or liquid form, but not including gas of a kind normally used for welding and cutting metals or gas sold as lighter fuel,

( c ) hydrocarbon oil of a kind used for domestic or industrial heating, excluding gas oil (within the meaning of the Hydrocarbon Oil (Rebated Oil) Regulations, 1961 ( S.I. No. 122 of 1961 )), other than gas oil which has been duly marked in accordance with Regulation 6 (2) of the said Regulations;

(ii) immovable goods;

(iii) services consisting of the development of immovable goods, and the maintenance and repair of immovable goods including the installation of fixtures, where the value of movable goods (if any) provided in pursuance of an agreement in relation to such services does not exceed two-thirds of the total amount on which tax is chargeable in respect of the agreement;

(iv) services, supplied on or after the 1st day of July, 1983, consisting of the repair or maintenance of mechanically propelled land vehicles including self-propelled mobile machinery (other than vehicles and machinery designed, constructed or intended for use on rails) and goods specified in paragraph (v), insofar as it applies to farmers, and paragraph (xx), of Part I of the Third Schedule, including the provision and installation in the course of supplying such services of goods of a kind normally included as parts of such vehicles when supplied new, but excluding—

( a ) the provision in the course of a repair or maintenance service of accessories, attachments, goods specified in paragraph (xxv) of the said Part I and batteries,

( b ) the repair and maintenance, whether performed separately or in the course of the repair or maintenance of other goods, of articles which are accessories or attachments or goods specified in the said paragraph (xxv), other than such articles that are of a kind specified in the said paragraph (v), insofar as it applies to farmers, and the said paragraph (xx), and

( c ) washing, cleaning and polishing;

(v) agricultural services consisting of—

( a ) field work, reaping, mowing, threshing, baling, harvesting, sowing and planting,

( b ) disinfecting and ensilage of agricultural products,

( c ) destruction of weeds and pests and dusting and spraying of crops and land,

( d ) lopping, tree felling and similar forestry services, and

( e ) land drainage and reclamation;

(vi) services of an auctioneer, solicitor, estate agent or other agent, directly related to the supply of immovable goods used for the purposes of an Annex A activity;

(vii) farm accountancy or farm management services.".

Relief for hotels etc.

89.—(1) ( a ) In this section "qualifying service" means a service consisting of the supply, for the benefit of persons not resident in the State, under an agreement made before the 1st day of January, 1983, of sleeping accommodation, with or without board, or of motor cars upon hire, boats upon hire or entertainment, at charges fixed at the time of the making of the agreement, to persons carrying on the business of travel agent, tour operator or the hiring out of motor cars or boats.

( b ) In respect of the taxable periods commencing on the 1st day of March, 1583, the 1st day of May, 1983, the 1st day of July, 1983, the 1st day of September, 1983 and the 1st day of November, 1983, notwithstanding the provisions of section 11 of the Principal Act (as amended by this Act), tax shall, in relation to the supply of a qualifying service, be, and be deemed to have been, chargeable at the rate of 18 per cent.

(2) Notwithstanding the provisions of section 11 of the Principal Act (as amended by this Act), the rate of tax chargeable in relation to the letting of immovable goods specified in paragraph (iv) (b) of the First Schedule to The Principal Act shall be 18 per cent.

PART IV STAMP DUTIES

Levy on banks.

90.—(1) In this section, except where the context otherwise requires—

"assessable amount" means the amount arrived at by dividing the specified amount by three and deducting £5,000,000 from the quotient

"bank" means a person who, on the 1st day of April, 1983, was the holder of a licence granted under section 9 of the Central Bank Act 1971 ;

"returns", in relation to a bank, means the monthly bank return furnished to the Central Bank of Ireland by the bank in respect of the assets and liabilities of the bank as on the 30th day of September 1982, the 20th day of October, 1982, and the 17th day of November, 1982;

"specified amount" means—

( a ) in the case of an associated bank, the amount obtained by deducting the aggregate of the sums shown in the returns of that bank in respect of Item 7 in Appendix 11 of the returns as an adjustment of current accounts for cheques in transit from the aggregate of the sums shown in the returns in respect of current accounts and deposit accounts by whomsoever held at offices in the State of the bank and shown as liabilities of the bank in such returns;

( b ) in the case of any other bank, the amount obtained by deducting the aggregate of the sums shown in the analysis of selected liabilities in the returns of that bank as due to banks (including banks that are not banks within the meaning of subsection (1)) in respect of current accounts, deposit accounts, other accounts and secured loans from the aggregate of the sums shown in the returns in respect of current accounts, deposit accounts, other accounts and secured loans by whomsoever held at offices in the State of the bank and shown as liabilities of the bank in such returns.

(2) A bank shall, not later than the 14th day of September, 1983, deliver to the Revenue Commissioners a statement in writing showing the assessable amount for that bank, the specified amount for that bank and the sums referred to in the definition of "specified amount" in subsection (1) by reference to which that specified amount was calculated.

(3) There shall be charged on every statement delivered pursuant to subsection (2) a stamp duty of an amount equal to the sum of the following:

( a ) 0.2 per cent. of that part of the assessable amount shown therein that does not exceed £100,000,000 and

( b ) 0.375 per cent. of that part of the assessable amount shown therein that exceeds £100,000,000:

Provided that in any case where the assessable amount shown in the statement does not exceed £100,000,000 stamp duty of an amount equal to 0.2 per cent. of the assessable amount shown therein shall be charged.

(4) The duty charged by subsection (3) upon a statement delivered by a bank pursuant to subsection (2) shall be paid by the bank upon delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by a bank such particulars as the Revenue Commissioners may deem necessary in relation to any statement required by this section to be delivered by the bank.

(6) In the case of failure by a bank to deliver any statement required by subsection (2) within the time provided for in that subsection or of failure to pay the duty chargeable on any such statement on the delivery thereof, the bank shall, from the date of the passing of this Act until the day on which the duty is paid, be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 15 per cent. per annum and also from the 14th day of September, 1983, by way of further penalty, a sum equal to 1 per cent. of the duty for each day the duty remains unpaid and each penalty shall be recoverable in the same manner as if the penalty were part of the duty.

(7) The delivery of any statement required by subsection (2) may be enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853, in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(8) The stamp duty charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty under the care and management of the Revenue Commissioners payable by the bank.

Amendment of section 17 (stamp duty in respect of credit cards and charge cards) of Finance (No. 2) Act, 1981 .

91.— Section 17 (2) of the Finance (No. 2) Act, 1981 , is hereby amended by the insertion after paragraph (c) of the following paragraph:

"(d) (i) A promoter may, within three months of the 1st day of April in any year (being the year 1983 or a subsequent year), with the consent of the Revenue Commissioners, deliver to them a statement in writing showing the number of charge cards, company charge cards and supplementary cards issued or renewed by the promoter and expressed to be valid for a period that includes the 1st day of April in that year.

(ii) There shall be charged on every statement delivered in accordance with the provisions of subparagraph (i) of this paragraph, and paid on the delivery of the statement, a stamp duty at the rate of £5 in respect of each charge card, company charge card and supplementary card included in the number of cards shown in the statement.

(iii) Notwithstanding paragraph (b) of this subsection, where a promoter delivers a statement in accordance with the provisions of this paragraph, the said paragraph (b) shall not apply in relation to the promoter in respect of the quarters occurring in the year in which the statement is delivered.".

Amendment of section 74 (stamp duty on gifts inter vivos) of Finance (1909-10) Act, 1910.

92.—(1) Section 74 of the Finance (1909-10) Act, 1910, is hereby amended by the substitution of the following subsection for subsection (5):

"(5) Any conveyance or transfer (not being a disposition made in favour of a purchaser or incumbrancer or other person in good faith and for valuable consideration) shall, for the purposes of this section, be deemed to be a conveyance or transfer operating as a voluntary disposition inter vivos, and the consideration for any conveyance or transfer shall not for this purpose be deemed to be valuable consideration where marriage is the consideration, or part of the consideration, or where the Commissioners are of opinion that by reason of the inadequacy of the sum paid as consideration or other circumstances the conveyance or transfer confers a substantial benefit on the person to whom the property is conveyed or transferred.".

(2) This section shall have effect with respect to any instrument executed on or after the date of the passing of this Act.

Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982 .

93.—(1) Section 92 of the Finance Act, 1982 is hereby amended—

( a ) by the insertion in the definition of "assessable amount", after "premiums", of "(including, in the case of an insurer who is a leading insurer (within the meaning of the European Communities (Co-insurance) Regulations, 1983 ( S.I. No. 65 of 1983 )), the amount received by way of overall premiums (within the meaning aforesaid))", and

( b ) by the insertion in the definition of "excluded amount", after "namely," in paragraph (b), of "4,".

(2) This section shall have effect in relation to amounts received on or after the date of the passing of this Act.

PART V REVENUE OFFENCES

Revenue offences.

94.—(1) In this Part—

"the Acts" means

( a ) the Customs Acts,

( b ) the statutes relating to the duties of excise and to the management of those duties,

( c ) the Tax Acts,

( d ) the Capital Gains Tax Acts,

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

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

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

( h ) Part VI,

and any instruments made thereunder and any instruments made under any other enactment and relating to tax;

"tax" means any tax, duty, levy or charge under the care and management of the Revenue Commissioners.

(2) A person shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence under this section if, after the date of the passing of this Act, he—

( a ) knowingly or wilfully delivers any incorrect return, statement or accounts or knowingly or wilfully furnishes any incorrect information in connection with any tax,

( b ) knowingly aids, abets, assists, incites or induces another person to make or deliver knowingly or wilfully any incorrect return, statement or accounts in connection with any tax,

( c ) claims or obtains relief or exemption from, or repayment of, any tax, being a relief, exemption or repayment to which, to his knowledge, he is not entitled,

( d ) knowingly or wilfully issues or produces any incorrect invoice, receipt, instrument or other document in connection with any tax,

( e ) knowingly or wilfully fails to comply with any provision of the Acts requiring

(i) the furnishing of a return of income, profits or gains, or of sources of income, profits or gains, for the purposes of any tax,

(ii) the furnishing of any other return, certificate, notification, particulars, or any statement or evidence, for the purposes of any tax,

(iii) the keeping or retention of books, records, accounts or other documents for the purposes of any tax, or

(iv) the production of books, records, accounts or other documents, when so requested, for the purposes of any tax,

( f ) fails to remit any income tax payable pursuant to Chapter IV of Part V of the Income Tax Act, 1967 , and the regulations thereunder, or section 7 of the Finance Act, 1968 , and the said regulations, or value-added tax within the time specified in that behalf in relation to income tax or value-added tax, as the case may be, by the Acts, or

( g ) obstructs or interferes with any officer of the Revenue Commissioners, or any other person, in the exercise or performance of powers or duties under the Acts for the purposes of any tax.

(3) A person guilty of an offence under this section shall be liable—

( a ) on summary conviction, to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months or to both the fine and the imprisonment, or

( b ) on conviction on indictment, to a fine not exceeding £10,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years or to both the fine and the imprisonment.

(4) Section 13 of the Criminal Procedure Act, 1967 , shall apply in relation to an offence under this section as if, in lieu of the penalties specified in subsection (3) of the said section 13, there were specified therein the penalties provided for by subsection (3) (a) of this section, and the reference in subsection (2) (a) of the said section 13 to the penalties provided for in the said subsection (3) shall be construed and have effect accordingly.

(5) Where an offence under this section is committed by a body corporate and the offence is shown to have been committed with the consent or connivance of any person who, when the offence was committed, was a director, manager, secretary or other officer of the body corporate, or a member of the committee of management or other controlling authority of the body corporate, that person shall also be deemed to be guilty of the offence and may be proceeded against and punished accordingly.

(6) In any proceedings under this section, a return or statement delivered to an inspector or other officer of the Revenue Commissioners under any provision of the Acts and purporting to be signed by any person shall be deemed, until the contrary is proved, to have been so delivered, and to have been signed, by that person.

(7) Notwithstanding the provisions of any other enactment, proceedings in respect of an offence under this section may be instituted within 10 years from the date of the commission of the offence or incurring of the penalty (as the case may be).

(8) Section 1 of the Probation of Offenders Act, 1907, shall not apply in relation to offences under this section.

(9) The provisions of sections 128 (4), 500 (4), 501 (3), 502 (3), 506 and 507 of the Income Tax Act, 1967 , and sections 26 (6) and 27 (7) of the Value-Added Tax Act, 1972 , shall, with any necessary modifications, apply for the purposes of this section as they apply for the purposes of those provisions, including, in the case of such of those provisions as were applied by the Capital Gains Tax Act, 1975 , the Corporation Tax Act, 1976 , or Part VI, the purposes of those provisions as so applied.

PART VI RESIDENTIAL PROPERTY TAX

Interpretation (Part VI).

95.—(1) In this Part, save where the context otherwise requires—

"aggregate relevant income" has the meaning assigned to it by section 101 (1);

"assessable person" means a person chargeable to tax save that a person shall be an assessable person notwithstanding that he is entitled under section 101 to exemption from tax in respect of the net market value of his relevant residential property on any valuation date;

"child" has the meaning assigned to it by section 141 (113) of the Income Tax Act, 1967 ;

"Collector" means the Collector-General appointed under section 162 of the Income Tax Act, 1967 ;

"the Commissioners" means the Revenue Commissioners;

"income" means total income from all sources as estimated in accordance with the provisions of the Income Tax Acts but without regard to—

( a ) any of the provisions of those Acts (apart from sections 340 , 353 and 354 of the Income Tax Act, 1967 , section 37 of the Finance Act, 1968 , section 19 of the Finance Act, 1973 , and section 9 of the Finance Act, 1982 ) which provide that any income is exempt from income tax or that any income is to be disregarded for the purposes of those Acts or which otherwise provide that any amount of income or any part thereof is not subject to Irish income tax,

( b ) sections 89 , 236 , 251 , 254 and 496 of the Income Tax Act, 1967 ,

( c ) Chapter I of Part IX of the Income Tax Act, 1967 ,

( d ) Chapter I of Part XIX of the Income Tax Act, 1967 ,

( e ) section 11 of the Finance Act, 1967 ,

( f ) section 26 of the Finance Act, 1971 ,

( g ) Chapter II of Part I of the Finance Act, 1972 ,

( h ) section 14 of the Finance Act, 1977 ,

( i ) section 25 of the Finance Act, 1978 , and

( j ) sections 23 and 24 of the Finance Act, 1981 ;

"income exemption limit" means the amount ascertained in accordance with section 101;

"the Income Tax Acts" has the same meaning as in section 3 of the Income Tax Act, 1967 ;

"lease", "lessee" and "rent" have respectively the meanings assigned to them by section 80 of the Income Tax Act, 1967 ;

"market value", in relation to any property, means the market value thereof ascertained in accordance with section 98;

"market value exemption limit" has the meaning assigned to it by section 100;

"net market value", in relation to the relevant residential property of a person on a valuation date, means the excess, if any, of the aggregate amount of the market values of all residential properties which in relation to the person are on that date relevant residential properties over the amount of the market value exemption limit applying on that valuation date in the case of the person;

"occupied", in relation to a residential property, means having the use thereof, whether actually used or not, and cognate words shall be construed accordingly;

"personal representatives" has the meaning assigned to it by section 450 (2) of the Income Tax Act, 1967 ;

"relevant person", in relation to an assessable person, means, as respects any valuation date, any person (other than a person who is an employee of the assessable person and whose employment is wholly or mainly connected with the relevant residential property) who in the year ended on that date normally resided at any relevant residential property of the assessable person and who, or whose 1 spouse,—

( a ) made no payment of rent or other like payment in respect of such residence, or

( b ) made a payment of rent or other like payment in respect of that residence of such amount that, if it had been paid by a person to whom subsection (2) (b) (iv) applies in respect of the relevant residential property under a lease, agreement or licence referred to in subsection (2) (b) (iv), that last-mentioned person would, by virtue of subsection (2) (b) (iv), be the owner in relation to the relevant residential property;

"relevant residential property" in relation to any person, means any residential property in relation to which he is the owner and which is occupied by him as a dwelling or dwellings;

"residential property" means—

( a ) a building or part of a building used or suitable for use as a dwelling, and

( b ) land (other than a garden such as is specified in section 39 (1) of the Finance Act, 1978 ) which the occupier of a building or part of a building used as a dwelling has for his own occupation and enjoyment with the said building or part as its garden or grounds of an ornamental nature,

but does not include an approved building within the meaning of section 19 of the Finance Act, 1982 ;

"tax" means residential property tax chargeable by virtue of this Part;

"the Tax Acts" has the same meaning as in section 155 of the Corporation Tax Act, 1976 ;

"valuation date", in relation to any year, means the 5th day of April in that year.

(2) For the purposes of this Part—

( a ) notwithstanding that he does not have the use of a residential property as a dwelling on a valuation date, a person shall be treated as having the use of the property as a dwelling on that valuation date if for the greater part of the year ending on that date and the greater part of the year commencing on the day next after that date he has the use of the property as a dwelling;

( b ) Subject to paragraph (c) a person is the owner in relation to a residential property if that person beneficially, whether solely, jointly or in common—

(i) holds a freehold estate in the property,

(ii) holds the property under a lease, agreement or licence, the duration of which exceeds 50 years,

(iii) is the owner under a mortgage of the equity of redemption in a freehold estate in the property or of the equity of redemption in an interest in the property under a lease, agreement or licence of the kind mentioned in subparagraph (ii),

(iv) holds the property under a lease, agreement or licence (other than a lease, agreement or licence of the kind referred to in subparagraph (ii)), under or in respect of which no rent or other like payment is made, or—

(I) a rent or other like payment is made of a total amount for the period for which it is agreed upon which, having regard to the values and other circumstances prevailing at the time the amount of the rent or other payment was agreed upon, is less than the total amount of the rent or other payment in respect of such lease, agreement or licence (hereafter referred to as "the arm's length rent") for that period which might be expected to have been agreed upon at that time having regard to those values and other circumstances if the negotiations for such lease, agreement or licence had been conducted in the open market at arm's length and there was no other consideration which the person entitled to the said rent or other payment was entitled to in respect of the lease, agreement or licence, and

(II) the difference between the total amount aforesaid of the rent or other payment aforesaid and the total amount aforesaid of the arm's length rent aforesaid exceeds 20 per cent. of the latter amount,

(v) holds the property at the will of sufferance of any other person, or under any trust, and in respect thereof—

(I) pays no rent, or

(II) pays a rent of such amount that, if it were paid under a lease of a kind mentioned in subparagraph (iv) granted at the time the person commenced to hold the property at the will or sufferance of that other person, or under the trust, the first-mentioned person would, under subparagraph (iv), be the owner in relation to the property;

( c ) a person shall not, by reason of subparagraph (iv) or (v) of paragraph (b), be the owner in relation to a residential property if—

(i) he is chargeable to tax under section 117 of the Income Tax Act, 1967 , in respect of the provision of the property, or would be so chargeable but for subsection (2) or (3) of the said section 117,

(ii) he is chargeable to tax under section 96 of the Corporation Tax Act, 1976 , in respect of the provision of the property,

(iii) the property is comprised in the relevant residential property of the person granting the lease or licence or making the agreement mentioned in the said subparagraph (iv) or is comprised in the relevant residential property of the person at whose will or sufferance the property is held as mentioned in the said subparagraph (v), or

(iv) he holds the property as a caretaker under an agreement made at arm's length;

( d ) in ascertaining the duration of a lease, agreement or licence, the provisions of section 80 (2) of the Income Tax Act, 1967 , shall, with any necessary modifications, apply in like manner as they apply for the purposes of Chapter VI of Part IV of that Act;

( e ) in ascertaining whether or not any rent or other like payment under or in respect of a lease, agreement or licence is less than the arm's length rent in respect of the property concerned, no regard shall be had to any provision in the lease, agreement or licence concerned or in any agreement relating to such lease, agreement or licence that, in the opinion of the Commissioners, was included for the purpose of concealing or diminishing the amount of the arm's length rent.

Charge of residential property tax.

96.—Subject to the provisions of this Part and any regulations thereunder, with effect on and from the 5th day of April, 1983, a tax, to be called residential property tax, shall be charged, levied and paid annually upon the net market value of the relevant residential property on the valuation date in each year of every person and the rate of tax shall be one and one-half per cent. of that net market value.

Taxable residential property of a person.

97.—(1) Subject to the provisions of this Part, the relevant residential property of a person who is domiciled in the State on the valuation date shall comprise all the property, wheresoever situate, which is relevant residential property of the person on that date.

(2) Subject to the provisions of this Part, the relevant residential property of a person who is not domiciled in the State on the valuation date shall comprise only the property situate in the State which is relevant residential property of the person on that date.

Market value of property.

98.—(1) In this Part, subject to the other provisions thereof and to any regulations thereunder, the market value of any property shall be estimated to be the price which the unencumbered fee simple of such property would fetch if sold for residential use in the open market on the valuation date in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the property.

(2) In estimating the market value of the unencumbered fee simple of any property in accordance with subsection (1) the person in whose relevant residential property the property is comprised shall fix the price of the property according to the price on the relevant valuation date and shall not make any reduction in the estimate on account of the estimate being made on the assumption that the person or any other person may be chargeable to tax.

(3) If the Commissioners are not satisfied with the market value of any property estimated by any person, or if they consider it necessary to do so, they may, subject to the same conditions and requirements as apply in the case of that person, estimate the market value of that property and, where the market value as so estimated by the Commissioners exceeds the market value estimated by the person, any charge to tax shall be made by reference to the market value estimated by the Commissioners and not by reference to the market value estimated by the person.

(4) The market value of any property for the purposes of subsection (3) or section 104 (2) shall be ascertained by the Commissioners in such manner and by such means as they think fit and they may authorise a person suitably qualified for that purpose to inspect any property and report to them the value thereof for the purposes of this Part and the person having the custody or possession of that property shall permit the person so authorised to inspect it at such reasonable times as the Commissioners consider necessary.

(5) Where the Commissioners require a valuation to be made by a person named by them, the costs of such valuation shall be defrayed by them.

Apportionment market values.

99.—Where as respects any valuation date a residential property is comprised in the relevant residential property of two or more persons the amount to be taken into account in respect of the market value of that property for the purposes of determining the net market values on that date of the relevant residential property of each of those persons shall be the amount which bears to the market value of the residential property on that date the same proportion as one bears to the number of those persons.

Market value exemption limit.

100.—(1) In this section—

"general exemption limit" means the general market value exemption limit applying on a valuation date, that is to say, the amount obtained by multiplying £65,000 by the new house price index number relevant to that valuation date and dividing the product by the new house price index number relevant to the valuation date falling on the 5th day of April, 1983;

"market value exemption limit", in relation to an assessable person as respects a valuation date, means the amount of the aggregate of the unit exemption limits attributed to the units of residential property comprised in the relevant residential property of the assessable person on that valuation date;

"the new house price index number" means the Trends in Private New House Prices Index Number compiled by the Department of the Environment and the new house price index number relevant to any valuation date means the new house price index number for the three months ended on the 31st day of March next before that valuation date expressed on the basis that the new house price index number for the three months ended on the 31st day of March, 1973, is 100.

"unit exemption limit", in relation to a valuation date, means the proportion of the general exemption limit in relation to that valuation date which is attributed to a unit of residential property, and shall be the amount determined by the formula—

[image not available: a15y1983s100-1.bmp]

where—

A is the market value (ascertained without regard to section 99) on the valuation date of the unit of residential property,

B is the aggregate of the market values (ascertained without regard to section 99) on the valuation date of all the units comprised in the relevant residential property of the assessable person,

G is the general exemption limit:

Provided that, in relation to a valuation date, where a unit of residential property is comprised in the relevant residential property of two or more persons, the unit exemption limit in relation to that unit of residential property in the case of the assessable person shall be reduced to the amount which bears to the unit exemption limit calculated without regard to this proviso the same proportion as one bears to the number of those persons.

(2) The amount of the market value exemption limit applying on a valuation date in the case of any person shall not exceed the general exemption limit applying on that date.

Income exemption limit.

101.—(1) Where an assessable person makes a claim in that behalf and proves that the aggregate of his income for the year ending on a valuation date and the income for that year of every person who, as respects that valuation date, is a relevant person in relation to the assessable person (hereafter in this Part referred to as "aggregate relevant income") did not exceed the income exemption limit applying on that valuation date, he shall be entitled to exemption from tax in respect of the net market value on that valuation date of his relevant residential property.

(2) The income exemption limit applying on a valuation date is the amount obtained by multiplying £20,000 by the consumer price index number relevant to that valuation date and dividing the product by the consumer price index number relevant to the valuation date falling on the 5th day of April, 1983.

(3) In this section "the consumer price index number" means the All Items Consumer Price Index Number compiled by the Central Statistics Office and the consumer price index number relevant to any valuation date means the consumer price index number at the mid-February next before that valuation date expressed on the basis that the consumer price index at mid-November, 1982, is 100.

Marginal reliefs.

102.—(1) Where an assessable person makes a claim in that behalf and proves that his aggregate relevant income as respects any valuation date does not exceed an amount equal to the aggregate of the income exemption limit applying on that valuation date and £5,000, he shall be entitled to have the tax, if any, payable by him in respect of the net market value of his relevant residential property on that valuation date reduced to an amount equal to the amount determined by the formula—

[image not available: a15y1983s100-2.bmp]

where—

A is the amount of the aggregate relevant income,

E is the income exemption limit, and

T is the tax which, apart from this subsection and subsection (2), would be payable.

(2) Where, for the year of assessment ending on a valuation date, an assessable person was entitled to relief under section 141 of the Income Tax Act, 1967 , in respect of any child or children resident with him, he shall be entitled to have the tax payable by him in respect of the net market value of his relevant residential property on that date reduced by the amount determined by the formula—

[image not available: a15y1983s100-3.bmp]

where—

C is 1 or, if the number of such children is greater than 1, that number (up to a maximum of 10), and

T is the tax which, apart from this subsection, would be payable.

(3) Any claim under subsection (1) shall be made in writing to the Commissioners not later than two years after the relevant valuation date.

Delivery of returns.

103.—(1) An assessable person shall on or before the 1st day of October immediately following each valuation date, deliver to the Commissioners on a form provided by them a return of all property comprised in the relevant residential property of the assessable person on that valuation date stating the market value thereof on that valuation date and shall, if required by notice in writing by the Commissioners, deliver to them within such time, not being less than 30 days, as may be specified in the notice, a statement verifying such particulars, together with such evidence, statements and documents as the Commissioners may require relating to that property or to any property which the Commissioners have reason to believe forms part of the relevant residential property of such assessable person.

(2) A person shall, if he is required by notice in writing by the Commissioners to do so, deliver to the Commissioners, within such time, not being less than 30 days, as may be specified in the notice, on a form provided by them a return of all property comprised in the relevant residential property of that person on the valuation date specified in the notice stating the market value thereof on that valuation date and shall, if he is so required by the Commissioners, deliver to them a statement verifying such particulars, together with such evidence, statements and documents as the Commissioners may require relating to that property.

(3) 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.

(4) The Commissioners may require the declaration mentioned in subsection (3) to be made on oath.

Assessment and payment of tax.

104.—(1) Tax in respect of any relevant residential property required to be included in a return under section 103 shall be due on the 1st day of October immediately following the valuation date to which the return relates and tax so due shall be payable by the assessable person without the making of an assessment; but tax which has become due as aforesaid may be assessed on the assessable person (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.

(2) In any case in which—

( a ) a return under section 103 (1) is not delivered by an assessable person to the Commissioners on or before the 1st day of October immediately following the relevant valuation date, or

( b ) a return under section 103 (2) is not delivered by a person within the time specified, or

( c ) the Commissioners are dissatisfied with any return made under section 103 (1) or section 103 (2),

the Commissioners may make an assessment of tax payable upon the net market value of the relevant residential property, or any part thereof, of the person on the relevant valuation date of such amount or such further amount, as, to the best of their knowledge, information and belief, ought to be charged, levied and paid and for this purpose the Commissioners may make such estimate of the market value of any property on that valuation date as they consider necessary:

Provided that the Commissioners may withdraw an assessment made under this subsection and make an assessment of the amount of tax payable on the basis of a return which, in their opinion, represents reasonable compliance with their requirements and which is delivered to the Commissioners within 30 days after the date of the assessment made by the Commissioners pursuant to this subsection.

(3) An assessment of tax may be reviewed by the Commissioners at any time and, where any amendment of an assessment is necessary as a result of the review whether in respect of the relevant residential property already assessed to tax or in respect of any additional relevant residential property, the Commissioners may, to the best of their knowledge, information and belief, make an amended assessment of the tax due and payable upon the net market value of the relevant residential property of the assessable person concerned or any part thereof.

(4) The making of an amended assessment shall not prejudice the right of the Commissioners to make further amended assessments of the amount of tax payable or to require delivery from the assessable person concerned of further returns, and the provisions of this section shall apply to such returns.

(5) Any tax or additional tax due under an assessment of tax or an amended assessment of tax made by virtue of this section shall be due and payable on the day next after the day on which the assessment of tax or the amended assessment of tax is made but, for the purposes of section 105, that tax or additional tax shall be treated as having been payable at the time when it would have been payable if it had been payable by virtue of a correct return under section 103 (1).

(6) Notwithstanding anything contained in any enactment, but subject to the provisions of this section, an assessment of tax or an amended assessment of tax may be made at any time.

(7) Any amount of tax due or assessed under this section shall be due and payable to the Commissioners.

(8) Section 187 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply to an assessment of tax or an amended assessment of tax as it applies in relation to assessments to income tax.

(9) Section 73 of the Finance Act, 1974 , shall, subject to any necessary modifications, apply in relation to tax as it applies in relation to income tax chargeable under Schedule D.

Interest on tax.

105.—(1) Simple interest at the rate of 1.25 per cent. per month or part of a month, without any deduction of income tax, shall be payable on tax from the date upon which it becomes due and payable until the date of payment and shall be chargeable and recoverable in the same manner as if it were part of the tax:

Provided that interest shall not be payable unless the total amount thereof exceeds £5.

(2) A payment on account of tax shall be applied—

( a ) if there is interest due on tax at the date of the payment, to the discharge, so far as may be, of the interest so due, and

( b ) if there is any balance of that payment remaining, to the discharge of so much tax as is equal to that balance.

(3) Subject to subsections (1) and (2), payments on account of tax due on any date may be made at any time after that date, whereupon interest on so much of the payment on account as is referable to tax shall cease to run.

(4) Interest payable under this section shall not be allowed in computing any income, profits or losses for any of the purposes of the Tax Acts.

(5) Where the Commissioners are dissatisfied with a return under section 103 and an amount or an additional amount of tax is found to be payable by virtue of an assessment of tax made under section 104, no interest shall be payable on that amount of tax or additional amount of tax if

( a ) the return was made in time, and

( b ) (i) in the case of an amount of tax where no tax was payable on the basis of the net market value of the relevant residential property included in the return, that amount of tax does not exceed £100, or

(ii) in the case of an additional amount of tax—

(A) the tax payable on the basis of the net market value of the relevant residential property included in the return was paid on or before the due date, and

(B) the additional amount of tax does not exceed 10 per cent. of the aggregate of the additional amount of tax and the tax referred to in clause (A) of this subparagraph, and

( c ) the amount of tax or additional amount of tax is paid not later than one month from—

(i) the date of the assessment of tax in which it is contained if there is no appeal under section 108 or 109 against the assessment, or

(ii) the date of the determination of an appeal under either of the said sections or, if there is more than one appeal to be determined, the date of the later determination.

Payment to Collector.

106.—All sums due under the provisions of this Part shall be paid to the Collector.

Overpayment of tax.

107.—(1) Where it is proved to the satisfaction of the Commissioners that the amount of tax or interest paid in respect of the relevant residential property of an assessable person on a valuation date exceeds the amount which that person was liable to pay, the excess shall be repaid by the Commissioners to the person who paid the excess, his nominee or personal representative or, at the option of the Commissioners, the excess, or such part of it as is required for that purpose, may be retained by the Commissioners and set off against any liability of the assessable person in respect of tax or interest due and payable by the person who paid the excess at the time the repayment falls to be made, in respect of the relevant residential property of the assessable person on any other valuation date.

(2) Where, under this section, any amount falls to be repaid or retained, there shall be added to such amount simple interest at the rate of 1.25 per cent. of the amount to be repaid or retained for each month or part of a month from the date of the payment of the excess giving rise to the repayment to the date of the repayment or retention as the case may be. Income tax shall not be deductible on payment of interest under this subsection and such interest shall not be reckoned in computing income for the purposes of the Tax Acts.

Appeals regarding value of residential property.

108.—If a person is aggrieved by the decision of the Commissioners as to the market value of any residential property, he may appeal against the decision in the manner prescribed by section 33 of the Finance (1909-10) Act, 1910, and the provisions as to appeals under that section of that Act shall apply accordingly with any necessary modifications.

Appeals in other cases.

109.—(1) In this section

"Appeal Commissioners" has the meaning assigned to it by section 156 of the Income Tax Act, 1967 ;

"appellant" means a person who appeals to the Appeal Commissioners under this section.

(2) Subject to the provisions of this Part, an assessable person who has been assessed to tax in respect of any relevant residential property and who is aggrieved by the assessment may, in accordance with the provisions of this section, appeal to the Appeal Commissioners against the assessment and the appeal shall be heard and determined by the Appeal Commissioners whose determination shall be final and conclusive unless the appeal is required to be reheard by a judge of the Circuit Court or a case is required to be stated in relation to it for the opinion of the High Court.

(3) An appeal shall not lie under this section in relation to the market value of residential property.

(4) A person who intends to appeal under this section against an assessment shall, within 30 days after the date of the assessment, give notice in writing to the Commissioners of his intention to appeal against the assessment.

(5) An appeal under this section against an assessment shall not be proceeded with or entertained by the Appeal Commissioners unless an amount equal to 75 per cent. of the amount of the assessment is paid to the Collector by or on behalf of the appellant:

Provided that this subsection shall not apply where the appellant is aggrieved by the assessment on the ground that he is entitled to exemption from tax by virtue of section 101 or on the ground that he is not an assessable person.

( 6 ) ( a ) Subject to the provisions of this section, the provisions of the Income Tax Acts relating to

(i) the appointment of times and places for the hearing of appeals;

(ii) the giving of notice to each person who has given notice of appeal of the time and place appointed for the hearing of his appeal;

(iii) the determination of an appeal by agreement between the appellant and the Commissioners;

(iv) the determination of an appeal by the appellant giving notice of his intention not to proceed with the appeal;

(v) 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;

(vi) 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;

(vii) 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;

(viii) the rehearing of an appeal by a judge of the Circuit Court and the statement of a case for the opinion of the High Court on a point of law;

(ix) the payment of tax in accordance with the determination of the Appeal Commissioners notwithstanding that an appeal is required to be reheard by a judge of the Circuit Court or that a case for the opinion of the High Court on a point of law has been required to be stated or is pending;

(x) the procedures for appeal,

shall, with any necessary modifications, apply to an appeal under this section as if the appeal were an appeal against an assessment to income tax.

( b ) The Commissioners shall, subject to their giving notice in writing in that behalf to the appellant within 10 days after the determination of an appeal by the Appeal Commissioners, have the same right as the appellant to have the appeal reheard by a judge of the Circuit Court.

( c ) The rehearing of an appeal under this section by a judge of the Circuit Court shall be by a judge of the Circuit Court in whose circuit the appellant resides:

Provided that—

(i) in any case where the appellant is not resident in the State, or

(ii) in any case where there is a doubt or a dispute as to the circuit,

the appeal shall be reheard by a judge of the Circuit Court assigned to the Dublin Circuit.

( 7 ) ( a ) Any notice or other document which is required or authorised by this section to be served by the Commissioners or by an appellant may be served by post.

( b ) Any notice or other document which is required or authorised to be served by the Commissioners on an appellant under this section may be sent to the solicitor, accountant or other agent of the appellant and a notice thus served shall be deemed to have been served on the appellant unless the appellant proves to the satisfaction of the Appeal Commissioners or the Circuit Court, as the case may be, that he had, before the notice or other document was served, withdrawn the authority of such solicitor, accountant or other agent to act on his behalf.

(8) Prima facie evidence of any notice given under this section by the Commissioners may be given in any proceedings by production of a document purporting to be a copy of the notice and it shall not be necessary to prove the official position of the person by whom the notice purports to be given or, if it is signed, the signature, or that the person signing and giving it was authorised so to do.

Recovery of tax.

110.—(1) All the provisions of the Income Tax Acts relating to the collection and recovery of income tax shall, subject to any necessary modifications, apply in relation to tax as they apply in relation to income tax chargeable under Schedule D.

(2) Without prejudice to subsection (1), every sum due to the Commissioners in respect of tax or interest thereon shall be deemed to be a debt due by an assessable person or his personal representative to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Commissioners and may (without prejudice to any other mode of recovery thereof) be sued for and recovered by action, or other appropriate proceeding, at the suit of the Attorney General, the Minister for Finance or the Commissioners in any court of competent jurisdiction, notwithstanding anything to the contrary contained in the Inland Revenue Regulation Act, 1890.

Evidence in proceedings for recovery.

111.—The provisions of section 39 of the Finance Act, 1926 , shall apply in any proceedings in the Circuit Court or the District Court for or in relation to the recovery of tax.

Penalties.

112.—(1) ( a ) A person who contravenes section 103 (1) or fails to comply with a notice under section 103 (2) shall be liable to a penalty of £1,000.

( b ) Where the contravention or failure referred to in paragraph (a) continues after judgement has been given by the court before which proceedings for the penalty have been commenced, the person concerned shall be liable to a further penalty of £50 for each day on which the contravention or failure so continues.

(2) Where, under or for the purposes of any of the provisions of this Part, a person is authorised to inspect any property for the purpose of reporting to the Commissioners the market value thereof and any person prevents such inspection or obstructs the person so authorised in the performance of his functions in relation to the inspection, that person shall be liable to a penalty of £1,000.

(3) Where an assessable person fraudulently or negligently—

( a ) delivers any incorrect return or additional return,

( b ) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any property comprised in the relevant residential property of the assessable person,

( c ) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any claim for any allowance, deduction, exemption or relief, or

( d ) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any other matter,

whereby the amount of tax payable in respect of the relevant residential property of the assessable person is less than it would have been if that return, statement, declaration, evidence or valuation had been correct, he shall be liable to a penalty of—

(i) £2,000, and

(ii) the amount, or in the case of fraud, twice the amount, of the difference specified in subsection (5).

(4) Where any such return, statement, declaration, evidence or valuation as is mentioned in subsection (3) was delivered, made or furnished neither fraudulently nor negligently by a person and it comes to his notice that it was incorrect, then, unless the error is remedied without unreasonable delay, such matter shall be treated, for the purposes of this section, as having been negligently done by him.

(5) The difference referred to in subsection (3) is the difference between—

( a ) the amount of tax payable in respect of the relevant residential property of the assessable person for the valuation date to which the return, additional return, statement, declaration, evidence or valuation relates, and

( b ) the amount which would have been the amount so payable if the return, additional return, statement, declaration, evidence or valuation as made or submitted by him had been correct.

(6) For the purposes of subsection (3), where anything referred to in that subsection is delivered, made or furnished on behalf of a person, it shall be deemed to have been delivered, made or furnished by that person unless he proves that it was done without his knowledge and consent.

(7) Any person who assists in or induces the delivery, making or furnishing for any purposes of tax of any return, additional return, statement, declaration, evidence or valuation which he knows to be incorrect shall be liable to a penalty of £1,000.

(8) The provisions of this section shall not affect any criminal proceedings.

(9) Subject to the provisions of this section, sections 128 (4), 507 , 508 , 510 , 511 , 512 , 517 and 518 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply to a penalty under this section as if the penalty were a penalty under the Income Tax Acts.

Relief from double taxation.

113.—(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 tax payable under the laws of the State and any tax of a similar character imposed under the laws of that territory, and that it is expedient that those arrangements should have the force of law, the arrangements shall, notwithstanding anything in any enactment, have the force of law.

(2) Any arrangements to which the force of law is given under this section may include provision for relief from tax charged before the making of the arrangements and provisions as to property which is not itself subject to double tax, and the provisions of this section shall have effect accordingly.

(3) For the purposes of subsection (1), arrangements made with the head of a foreign state shall be regarded as made with the government thereof.

(4) Where any arrangements have the force of law by virtue of this section, the obligation as to secrecy imposed by any enactment shall not prevent the Commissioners from disclosing to any authorised officer of the government with which the arrangements are made such information as is required to be disclosed under the arrangements.

( 5 ) ( a ) Any order made under this section may be revoked by a subsequent order and any such revoking order may contain such transitional provisions as appear to the Government to be necessary or expedient.

( b ) Where an order is proposed to be made under this section, a draft thereof shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann.

( 6 ) ( a ) Where the Commissioners are satisfied that a tax of a similar character to residential property tax was paid in a territory outside the State in respect of residential property (other than residential property in the State) comprised in the relevant residential property of an assessable person on any valuation date by reference to any date prior to but within twelve months of that valuation date, they may make an allowance by way of credit against the tax due and payable in respect of such residential property for that valuation date for the foreign tax paid in that territory in respect of such residential property and for this purpose the tax due and payable in respect of that residential property for that valuation date shall be the amount which bears to the total tax payable by the assessable person in respect of his relevant residential property on the valuation date the same proportion as the market value of that residential property on that date bears to the aggregate amount of the market values of all residential property comprised in his relevant residential property on that date.

( b ) This subsection shall have effect in respect of residential property tax due and payable for a valuation date but it shall not have effect in relation to a foreign tax in respect of which there is, for the time being, an order in force under this section providing for double taxation relief.

Extension of certain Acts.

114.—(1) Section 1 of the Provisional Collection of Taxes Act, 1927 , is hereby amended by the insertion of "and residential property tax" before "but no other tax or duty".

(2) Section 39 of the Inland Revenue Regulation Act, 1890, is hereby amended by the insertion of "residential property tax," before "stamp duties".

Regulations.

115.—(1) The Commissioners may make such regulations as seem to them to be necessary for the purpose of giving effect to this Part and of enabling them to discharge their functions thereunder.

(2) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Authorisation of officers.

116.—The Commissioners may authorise any of their officers to perform any act and discharge any function authorised by this Part to be performed or discharged by the Commissioners.

PART VII MISCELLANEOUS

Capital Services Redemption Account.

117.—(1) In this section—

"the principal section" means section 22 of the Finance Act, 1950 ;

"the 1982 amending section" means section 103 of the Finance Act, 1982 ;

"the thirty-third additional annuity" means the sum charged on the Central Fund under subsection (4) of this section;

"the Minister", "the Account" and "capital services" have the same meanings respectively as they have in the principal section.

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1983, subsection (4) of the 1982 amending section shall have effect with the substitution of "£34,052,920" for "£35,938,852".

(3) Subsection (6) of the 1982 amending section shall have effect with the substitution of "£21,495,968" for "£23,134,615".

(4) A sum of £30,566,856 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of December, 1983.

(5) The thirty-third additional annuity shall be paid into the Account in such manner and at such times in the relevant financial year as the Minister may determine.

(6) Any amount of the thirty-third additional annuity, not exceeding £19,676,545 in any financial year, may be applied towards defraying the interest on the public debt.

(7) The balance of the thirty-third additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

Amendment of section 54 of Finance Act, 1970 .

118.— Section 54 of the Finance Act, 1970 , is hereby amended by the insertion after subsection (6) (inserted by the Finance Act, 1978 ) of the following subsection:

"(7) The Minister for Finance may engage in such transactions of a normal banking nature, and may, for the purposes of those transactions, issue such funds from the Exchequer, as he considers appropriate for the purposes of subsection (1) of this section and for the purposes of the better management of the indebtedness incurred by the Minister for Finance under the said subsection (1), and the expenses and other costs incurred by the Minister for Finance in connection with or arising out of such transactions shall be charged on the Central Fund or the growing produce thereof.".

Payments from Central Fund to Post Office Savings Bank Fund.

119.—(1) Where it appears to the Minister for Finance that the amount of interest accrued during any year of account (whether ending before or after the passing of this Act) from the securities standing to the credit of the Post Office Savings Bank Fund during that year was less than the amount of interest paid or credited to depositors during that year in pursuance of the Acts relating to the Post Office Savings Bank and the expenses incurred in that year in the execution of those Acts, the Minister for Finance may cause to be paid out of the Central Fund or the growing produce thereof to the Post Office Savings Bank Fund, at such times as he may determine, an amount not exceeding the amount of the deficiency.

(2) Where it appears to the Minister for Finance that the Post Office Savings Bank Fund is insufficient to meet the claims of all depositors with the Post Office Savings Bank, the Minister for Finance may cause to be paid out of the Central Fund or the growing produce thereof to the Post Office Savings Bank Fund, at such times as he may determine, an amount not exceeding the amount of the deficiency.

Repeals.

120.—Each enactment specified in column (2) of the Fourth Schedule is hereby repealed to the extent specified in column (3) of that Schedule.

Care and management of taxes and duties.

121.—All taxes and duties imposed by this Act (apart from income levy collectible by health boards) are hereby placed under the care and management of the Revenue Commissioners.

Short title, construction and commencement.

122.—(1) This Act may be cited as the Finance Act, 1983 .

(2) Parts I and V (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts and (so far as relating to gift tax or inheritance tax) shall be construed together with the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act.

(3) Parts II and V (so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties.

(4) Part III and (so far as relating to value-added tax) Parts I and V shall be construed together with the Value-Added Tax Acts, 1972 to 1982, and may be cited therewith as the Value-Added Tax Acts, 1972 to 1983.

(5) Part IV and (so far as relating to stamp duty) Parts I and V shall be construed together with the statutes which relate to stamp duty and to the management of that duty.

(6) Part I shall, save as is otherwise expressly provided therein, be deemed to have come into force and shall take effect as on and from the 6th day of April, 1983.

(7) Part III (other than sections 77 to 80, 81 (1), 82, 84 and 85) shall be deemed to have come into force and shall take effect as on and from the 1st day of May, 1983, and the said sections 77, 81 (1) and 82 shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1983, and the said sections 78, 80 and 84 shall come into force and shall take effect as on and from the 1st day of September, 1983.

(8) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment including this Act.

(9) In this Act, a reference to a Part, section or schedule is to a Part or section of, or schedule to, this Act, unless it is indicated that reference to some other enactment is intended.

(10) In this Act, a reference to a subsection, paragraph or subparagraph is to the subsection, paragraph or subparagraph of the provision (including a schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.

Section 58.

FIRST SCHEDULE

RATES OF EXCISE DUTY ON TELEVISIONS

Description of Televisions

Rate of Duty

Colour televisions:

with a screen the maximum dimension of which does not exceed seventeen inches

with a screen the maximum dimension of which exceeds seventeen inches and does not exceed twenty-four inches

with a screen the maximum dimension of which exceeds twenty-four inches

Monochrome televisions:

with a screen the maximum dimension of which does not exceed seventeen inches

with a screen the maximum dimension of which exceeds seventeen inches

£78 the television

£98 the television

£121 the television

£24 the television

£38 the television

Section 62.

SECOND SCHEDULE

RATES OF EXCISE DUTY ON GAMING LICENCES

Description of Licence	Rate of Duty
Where the period for which the licence is to be issued as specified in the certificate under the Gaming and Lotteries Act, 1956 , authorising the issue of the licence—
(a) does not exceed three months	£75
(b) exceeds three months but does not exceed six months	£150
(c) exceeds six months but does not exceed nine months	£225
(d) exceeds nine months	£300

Section 64.

THIRD SCHEDULE

RATES OF EXCISE DUTY ON FIREARM CERTIFICATES

Description of Certificate	Rate of Duty
For a firearm certificate for a pistol, including an air pistol, or revolver	£20
For a firearm certificate for a rifle, including a miniature rifle	£20
For a firearm certificate for an airgun, including an air rifle	£20
For a firearm certificate for a prohibited weapon	£2
For a firearm certificate for a shot-gun to which the provisions of section 12 of the Firearms Act, 1964 , apply	£3
For any other firearm certificate—
For one such certificate	£13
Where two or more such certificates are granted to the same person (not necessarily at the same time) and expire on the same date—
For the first such certificate	£13
For the second and every subsequent such certificate	£3

Section 120.

FOURTH SCHEDULE

ENACTMENTS REPEALED

Number and Year (1)	Short Title (2)	Extent of Repeal (3)
No. 15 of 1933.	Finance Act, 1933 .	Section 7.
No. 24 of 1952.	Finance (Excise Duties) (Vehicles) Act, 1952.	Paragraph 5 (5) of Part II of the Schedule.
No. 6 of 1967.	Income Tax Act, 1967 .	Paragraphs (d), (ff) and (g) of subsection (2) and subsection (3) of section 340.
No. 27 of 1974.	Finance Act, 1974 .	In section 13 (1), the definition of "rates" and the definition of "tax appropriate to the profits or gains from farming". Section 13 (2) and (3). Section 17. Section 18. Section 19. In section 20B(3) (b), the words by virtue of section 5 (3),". Section 21 A. Section 28. Third Schedule
No. 16 of 1976.	Finance Act, 1976 .	Section 19.
No. 21 of 1978.	Finance Act, 1978 .	In section 15 (2), the words ", by virtue of section 15 (3) of the Finance Act, 1974 ,".
No. 14 of 1980.	Finance Act, 1980 .	Section 25.

	[Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback]
	Irish Legislation
You are here: BAILII >> Databases >> Irish Legislation >> Finance Act, Number 15/1983 URL: http://www.bailii.org/ie/legis/num_act/1983/0015.html

Irish Legislation

Finance Act, 1983