Adoption Acts, 1952 to 1991
Adoption Act, 1991	1991, No. 14
Bank of Ireland (1797)	37 Geo. 3, c. 54
Bank of Ireland Act, 1821	1 & 2 Geo. 4, c. 72
Building Societies Act, 1989	1989, No. 17
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
Companies Act, 1963	1963, No. 33
Companies Acts, 1963 to 1990
Continental Shelf Act, 1968	1968, No. 14
Corporation Tax Act, 1976	1976, No. 7
Courts (No. 2) Act, 1986	1986, No. 26
Customs and Inland Revenue Act, 1881	44 & 45 Vict., c. 12
Customs and Inland Revenue Act, 1885	48 & 49 Vict., c. 51
Customs and Inland Revenue Act, 1889	52 & 53 Vict., c. 7
Diplomatic Relations and Immunities Acts, 1967 and 1976
Excise Act, 1835	5 & 6 Will. 4, c. 39
Family Home Protection Act, 1976	1976, No. 27
Finance Act, 1896	59 & 60 Vict., c. 28
Finance Act, 1902	2 Edw. 7, c. 7
Finance (1909-10) Act, 1910	10 Edw. 7 & 1 Geo. 5, c. 8
Finance Act, 1914 (Session 2)	5 & 6 Geo. 5, c. 7
Finance Act, 1915	5 & 6 Geo. 5, c. 62
Finance Act, 1916	6 & 7 Geo. 5, c. 24
Finance Act, 1918	8 & 9 Geo. 5, c. 15
Finance Act, 1920	10 & 11 Geo. 5, c. 18
Finance Act, 1925	1925, No. 28
Finance Act, 1940	1940, No. 14
Finance Act, 1946	1946, No. 15
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, 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. 18
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 Act, 1983	1983, No. 15
Finance Act, 1984	1984, No. 9
Finance Act, 1985	1985, No. 10
Finance Act, 1986	1986, No. 13
Finance Act, 1987	1987, No. 10
Finance Act, 1988	1988, No. 12
Finance Act, 1989	1989, No. 10
Finance Act, 1990	1990, No. 10
Finance Act, 1991	1991, No. 13
Finance (Excise Duties) (Vehicles) Act, 1952	1952, No. 24
Finance (Excise Duty on Tobacco Products) Act, 1977	1977, No. 32
Finance (Miscellaneous Provisions) Act, 1956	1956, No. 47
Finance (Miscellaneous Provisions) Act, 1968	1968, No. 7
Finance (New Duties) Act, 1916	6 Geo. 5, c. 11
Finance (Taxation of Profits of Certain Mines) Act, 1974	1974, No. 17
Gaming and Lotteries Act, 1956	1956, No. 2
Higher Education Authority Act, 1971	1971, No. 22
Income Tax Act, 1967	1967, No. 6
Industrial and Provident Societies Acts, 1893 to 1978
Inland Revenue Act, 1880	43 & 44 Vict., c. 20
Intoxicating Liquor Act, 1927	1927, No. 15
Intoxicating Liquor Act, 1960	1960, No. 18
Intoxicating Liquor Act, 1962	1962, No. 21
Intoxicating Liquor Act, 1988	1988, No. 16
Intoxicating Liquor (General) Act, 1924	1924, No. 62
Licensing (Ireland) Act, 1833	3 & 4 Will. 4, c. 68
Licensing (Ireland) Act, 1902	2 Edw. 7, c. 18
Local Government Act, 1941	1941, No. 23
Local Government Services (Corporate Bodies) Act, 1971	1971, No. 6
National Treasury Management Agency Act, 1990	1990, No. 18
Petroleum and Other Minerals Development Act, 1960	1960, No. 7
Postal and Telecommunications Services Act, 1983	1983, No. 24
Provisional Collection of Taxes Act, 1927	1927, No. 7
Public Dance Halls Act, 1935	1935, No. 2
Revenue Act, 1909	9 Edw. 7, c. 43
Roads Act, 1920	10 & 11 Geo. 5, c. 72
Social Welfare (Consolidation) Act, 1981	1981, No. 1
Stamp Act, 1891	54 & 55 Vict., c. 39
Succession Duty Act, 1853	16 & 17 Vict., c. 51
Temple Bar Area Renewal and Development Act, 1991	1991, No. 19
Tourist Traffic Acts, 1939 to 1987
Unit Trusts Act, 1990	1990, No. 37
Value-Added Tax Act, 1972	1972, No. 22
Value-Added Tax (Amendment) Act, 1978	1978, No. 34
Vocational Education Act, 1930	1930, No. 29

Number 9 of 1992

No. 9/1992: FINANCE ACT, 1992

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.

[28th May, 1992]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX

CHAPTER I Income Tax

Amendment of provisions relating to exemption from income tax.

1.—As respects the year of assessment 1992-93 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended—

( a ) in section 1—

(i) by the substitution, in paragraph ( b ) of subsection (1), of "48 per cent." for "52 per cent." (inserted by the Finance Act, 1991 ), and

(ii) by the substitution, in subsection (2) (inserted by the Finance Act, 1989 ), of "£7,000" and "£3,500", respectively, for "£6,800" and "£3,400" (inserted by the Finance Act, 1991 ),

and

( b ) in section 2—

(i) by the substitution, in subsection (3), of "48 per cent." for "52 per cent." (inserted by the Finance Act, 1991 ), and

(ii) by the substitution, in subsection (6) (inserted by the Finance Act, 1989 )-

(I) of "£8,000" and "£9,200", respectively, for "£7,800" and "£9,000" (inserted by the Finance Act, 1991 ), in paragraph ( a ), and

(II) of "£4,000" and "£4,600", respectively, for "£3,900" and "£4,500" (inserted by the Finance Act, 1991 ), in paragraph (b),

and the said paragraph ( b ) of subsection (1), and the said subsection (2), of the said section 1 and the said subsections (3) and (6) of the said section 2, as so amended, are set out in the Table to this section.

TABLE

( b ) an individual makes a claim for the purpose, makes a return in the prescribed form of his total income for that year and proves that it goes not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 48 per cent. of the amount by which his total income exceeds the specified amount, reduced to that sum.

(2) In this section "the specified amount means, subject to subsection (3)—

( 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 , £7,000, and

( b ) in any other case, £3,500.

(3) Where an individual to whom this section applies proves that his total income for a year of assessment for which this section applies does not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 48 per cent. of the amount by which his total income exceeds the specified amount, reduced to that sum.

(6) In this section "the specified amount means, subject to subsection (3) of section 1—

( 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 , £8,000:

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, "the specified amount means £9,200, and

( b ) in any other case, £4,000:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, "the specified amount means £4,600.

Alteration of rates of income tax.

2.—(1) As respects the year of assessment 1992-93 and subsequent years of assessment—

( a ) section 2 of the Finance Act, 1991 , is hereby amended by the substitution of the following Table for the Table to that section:

"TABLE

PART I

Part of taxable income

(1)

Rate of tax

(2)

Description of rate

(3)

The first £7,475

27 per cent.

the standard rate

The remainder

48 per cent.

the higher rate

PART II

Part of taxable income

(1)

Rate of tax

(2)

Description of rate

(3)

The first £14,950

27 per cent.

the standard rate

The remainder

48 per cent.

the higher rate

and

( b ) any reference in the Tax Acts to the higher rates shall be construed as a reference to the higher rate.

( 2 ) ( a ) Section 198 of the Income Tax Act, 1967 , is hereby amended, as respects the year of assessment 1992-93 and subsequent years of assessment, by the substitution in subsections (1) ( b ) and (3) of " section 2 of the Finance Act, 1991 " for " section 8 of the Finance Act, 1980 ".

( b ) The reference to section 8 of the Finance Act, 1980 , in subsection (1) ( b ), and in subsection (3), of section 198 of the Income Tax Act, 1967 , shall in each case be construed and be deemed always to have been construed—

(i) as respects the years of assessment 1984-85 to 1990-91, as a reference to section 2 of the Finance Act, 1984 , and

(ii) as respects the year of assessment 1991-92, as a reference to section 2 of the Finance Act, 1991 .

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

3.— 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 1992-93, as if in subsection (2)—

( a ) "1992-93" were substituted for "1982-83" and

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

Cesser of relief in respect of life insurance premiums.

4.—The following provisions shall not apply or have effect in relation to the year of assessment 1992-93 or any subsequent year of assessment, that is to say:

( a ) sections 143 , 151 and 152 of the Income Tax Act, 1967 ,

( b ) section 23 of, and the First Schedule to, the Finance Act, 1973 , and

( c ) section 8 (as amended by the Finance Act, 1991 ) of the Finance Act, 1989 .

Amendment of section 432 (making of claims, etc., and appeals and rehearings) of Income Tax Act, 1967 .

5.— Section 432 of the Income Tax Act, 1967 , is hereby amended, in subsection (1), by the insertion after "but any person aggrieved by any determination on any such claim, matter or question may," of "subject to section 17 of the Finance Act, 1988 , and", and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

(1) Notwithstanding any other provision of this Act—

( a ) all claims of exemption or for any allowance or deduction under this Act,

( b ) all claims for repayment of tax under this Act, and

( c ) (i) all claims to relief under this Act where the relief is measured in the provision under which it is given, and

(ii) all matters and questions relating to any relief so measured,

in relation to which a right of appeal from a decision is, otherwise than by this section, not specifically provided,

shall be stated in such manner and form as the Revenue Commissioners may prescribe and shall be submitted to and determined by the Revenue Commissioners or such officer of the Revenue Commissioners (including an inspector) as they may authorise in that behalf, but any person aggrieved by any determination on any such claim, matter or question may, subject to section 17 of the Finance Act, 1988 , and on giving notice in writing to the Revenue Commissioners or the officer within thirty days after notification to the person aggrieved of the determination, appeal to the Appeal Commissioners.

Amendment of Chapter II (occupational pension schemes) of Part I of Finance Act, 1972 .

6.—Chapter II of Part I of the Finance Act, 1972 , is hereby amended—

( a ) in subsection (3) of section 15, by the deletion in paragraph (a)of "(or if the employee is a woman, 55)",

( b ) in subsection (2) of section 21, as respects any repayment of contributions referred to in the said section 21 which is made on or after the 29th day of January, 1992, by the substitution of "25 per cent." for "10 per cent.":

Provided that this paragraph shall not apply where the Revenue Commissioners are satisfied that an application for a repayment was made by or on behalf of an employee before the said 29th day of January, 1992,

and

( c ) in section 22, by the substitution of the following subsection for subsection (2):

"(2) Where any amount is chargeable to tax under this section the administrator of the scheme shall be charged to income tax under Case IV of Schedule D on that amount and, subject to subsection (4) of section 21 which shall apply as it applies to tax chargeable under that section, the rate of tax shall be 10 per cent.",

and the said paragraph ( a ) of subsection (3) of section 15 and the said subsection (2) (apart from the proviso) of section 21, as so amended, are set out in the Table to this section.

TABLE

( a ) that any benefit for an employee is a pension on retirement at a specified age not earlier than 60 and not later than 70, or on earlier retirement through incapacity, which does not exceed one-sixtieth of the employee's final remuneration for each year of service up to a maximum of 40,

(2) Where any payment is chargeable to tax under this section, the administrator of the scheme shall be charged to income tax under Case IV of Schedule D, and subject to subsection (3), the rate of the tax shall be 25 per cent.:

Amendment of section 8 (permanent health benefit schemes) of Finance Act, 1979 .

7.—(1) Section 8 of the Finance Act, 1979 , is hereby amended by the insertion after subsection (4) of the following subsection:

"(4A) The Revenue Commissioners may nominate any of their officers, including an inspector, to perform any acts and discharge any functions authorised by this section to be performed or discharged by them.".

(2) Subsection (1) shall be deemed to have come into operation on the 1st day of June, 1979.

Amendment of section 4 (benefit of use of a car) of Finance Act, 1982 .

8.—As respects the year 1992-93 and subsequent years of assessment, section 4 of the Finance Act, 1982 , is hereby amended—

( a ) in paragraph ( a ) of subsection 3—

(i) by the substitution of "30 percent." for "20 percent.",

(ii) by the substitution of "4½ per cent." for "3 per cent." in subparagraph (i),

(iii) by the substitution of "3 per cent." for "2 per cent.", in subparagraph (ii) and in subparagraph (iii), and

(iv) by the substitution of "1 per cent." for "½ per cent." in subparagraph (iv),

and

( b ) in subsection 4—

(i) by the substitution of "15,000" for "10,000" in paragraph (a), and

(ii) by the substitution—

(I) as respects the year 1992-93, of the Table set out in Part I of the First Schedule,

(II) as respects the year 1993-94, of the Table set out in Part II of the First Schedule,

(III) as respects the year 1994-95, of the Table set out in Part III of the First Schedule,

(IV) as respects the year 1995-96, of the Table set out in Part IV of the First Schedule, and

(V) as respects the year 1996-97 and subsequent years of assessment, of the Table set out in Part V of the First Schedule

for the Table to that subsection,

and the said paragraphs (a) of the said subsections (3) and (4), as so amended, are set out, respectively, in the Table to this section.

TABLE

( a ) The cash equivalent of the benefit of a car for a year of assessment shall be 30 per cent. of the original market value of the car, but shall be reduced—

(i) where no part of the cost, for that year, of the fuel used in the course of the private use of the car by the employee is borne directly or indirectly by the employer, by 4½ per cent. of the original market value of the car,

(ii) where no part of the cost, for that year, of the insurance of the car is borne directly or indirectly by the employer, by 3 per cent. of the original market value of the car,

(iii) where no part of the cost, for that year, of repair and servicing of the car is borne directly or indirectly by the employer, by 3 per cent. of the original market value of the car, and

(iv) where no part of the excise duty, for that year, on the licence under section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952 , relating to the car is borne directly or indirectly by the employer, by 1 per cent. of the original market value of the car.

( a ) Where, in relation to a person, the business mileage for a year of assessment exceeds 15,000, the cash equivalent of the benefit of the car for that year, instead of being the amount ascertained under subsection (3), shall be the percentage of that amount applicable to that business mileage under the Table to this subsection.

Amendment of section 8 (restriction of relief in respect of interest paid on certain loans at a reduced rate) of Finance Act, 1982 .

9.— Section 8 of the Finance Act, 1982 , is hereby amended, as respects the year 1992-93 and subsequent years of assessment, by the substitution in the definition of "the specified rate" (inserted by the Finance Act, 1989 ) in subsection (1) of—

( a ) "11 per cent." for '10 per cent." in both places where it occurs, and

( b ) "15 per cent." for "12 per cent.",

and the said definition, as so amended, is set out in the Table to this section.

TABLE

"the specified rate", in relation to a preferential loan, means—

(i) in a case where—

(I) the interest which is paid on the preferential loan qualifies for relief under section 76 (1) (c) or 496 of, or paragraph 1 (2) of Part III of Schedule 6 to, the Income Tax Act, 1967 , or

(II) if no interest is paid on the preferential loan, the interest which would have been paid on that loan (if interest had been payable) would have so qualified,

the rate of 11 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, or

(ii) in a case where—

(I) the preferential loan is made to an employee by an employer,

(II) the making of loans for the purposes of purchasing a dwelling-house for occupation by the borrower as a residence, for a stated term of years at a rate of interest which does not vary for the duration of the loan, forms part of the trade of the employer, and

(III) the rate of interest at which the employer in the course of his trade at the time the preferential loan is or was made makes or made loans at arm's length to persons, other than employees, for the purposes of purchasing a dwelling-house for occupation by the borrower as a residence is less than 11 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations,

the first-mentioned rate in subparagraph (III), or

(iii) in any other case, the rate of 15 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations.

Amendment of section 13 (interpretation (Chapter III)) of Finance Act, 1987 .

10.— Section 13 (1) of the Finance Act, 1987 , is hereby amended ' as respects relevant payments made on or after the 6th day of June, 1992, by the substitution of the following definition for the definition of "relevant payment (inserted by the Finance Act, 1988 ):

"relevant payment" means a payment made by—

( a ) an accountable person in respect of professional services whether or not such services are provided to the accountable person making the payment, or

( b ) an authorised insurer to a practitioner in accordance with the provisions of section 14A (inserted by the Finance Act, 1988 ), or otherwise, in the discharge of a claim in respect of relevant medical expenses under a contract of insurance,

but excludes—

(i) emoluments within the scope of Chapter IV of Part V of the Income Tax Act, 1967 , to which that Chapter applies, and

(ii) payments under a construction contract within the meaning of section 17 of the Finance Act, 1970 , and payments under a relevant contract within the meaning of the said section 17 (as amended by the Finance Act, 1992), from which tax has been deducted in accordance with the provisions of subsection (2) of that section, or would have been so deducted but for the provisions of subsection (8) of that section;".

Amendment of section 14 (accountable persons) of Finance Act, 1987 .

11.—(1) Section 14 of the Finance Act, 1987 , is hereby amended by the substitution of the following subsections for subsections (1) and (2):

"(1) In this Chapter 'accountable person' means a person specified in the Second Schedule to the Finance Act, 1992 .

(1A) Where any of the persons specified in the Second Schedule to the Finance Act, 1992 , is a body corporate, 'accountable person' shall be deemed to include any subsidiary of that body corporate where such subsidiary is resident in the State and, for the purposes of this subsection, 'subsidiary' shall have the meaning assigned to it by section 155 of the Companies Act, 1963 .

(2) For the purposes of this Chapter the Minister for Finance may by Regulations extend or restrict the meaning of accountable person by adding or deleting one or more persons to or from, as the case may be, the list of persons specified in the Second Schedule to the Finance Act, 1992 .".

(2) This section shall apply and have effect from the 6th day of June 1992.

Cesser of provisions relating to approved share option schemes.

12.—Section 10 of, and the Second Schedule to, the Finance Act, 1986 , shall not apply or have effect in respect of a right (within the meaning of that section) obtained on or after the 29th day of January, 1992, to acquire shares in a body corporate.

Cesser of section 14 (taxation treatment of certain dividends) of Finance Act, 1986 .

13.— Section 14 of the Finance Act, 1986 , shall not apply or have effect in relation to any qualifying dividend (within the meaning of that section) that is paid on or after the 29th day of January, 1992.

Relief to individuals on loans applied in acquiring interest in companies.

14.—(1) In this section—

"loan" means a loan applied for any of the purposes specified in the principal section;

"quoted company" means a company whose shares, or any class of whose shares—

( a ) are listed in the official list of the Irish Stock Exchange or any other stock exchange, or

( b ) are dealt in on the smaller companies market, the unlisted securities market or the exploration securities market of the Irish Stock Exchange or on any similar or corresponding market of any other stock exchange;

"the principal section" means section 34 of the Finance Act, 1974 , as amended by section 8 of the Finance Act, 1978 ;

"the specified date", in relation to a loan, means—

( a ) (i) in a case where the loan was applied on or before the 5th day of April, 1989, the 6th day of April, 1992,

(ii) in a case where the loan was applied on or after the 6th day of April, 1989, but on or before the 5th day of April, 1990, the 6th day of April, 1993, and

(iii) in a case where the loan was applied on or after the 6th day of April, 1990, the 6th day of April, 1994,

( b ) if later, the 6th day of April in the second year of assessment next after the year of assessment in which the company, part of whose ordinary share capital was acquired or, as the case may be, to which the money was lent, becomes a quoted company.

(2) Subject to subsection (3), as respects the year of assessment 1992-93 and subsequent years of assessment, entitlement to relief under the principal section in respect of interest paid on a loan shall, if the company, part of whose ordinary share capital was acquired or, as the case may be, to which the money was lent, is, at the specified date in relation to the loan, a quoted company, be determined subject to the following provisions, that is to say—

( a ) as respects the year of assessment commencing with the said specified date, relief shall not be given in respect of the excess of the amount, or of the aggregate amount, of the interest over 70 per cent. of the amount, or of the aggregate amount, of the interest in respect of which, apart from this paragraph, relief would otherwise have been given under the principal section,

( b ) as respects the immediately next following year of assessment, relief shall not be given in respect of the excess of the amount, or of the aggregate amount, of the interest over 40 per cent. of the amount, or of the aggregate amount, of the interest in respect of which, apart from this paragraph, relief would otherwise have been given under the principal section, and

( c ) as respects any subsequent year of assessment, no relief shall be given under the principal section.

(3) Notwithstanding anything in subsection (2) or the principal section, the principal section shall not apply or have effect in relation to any payment of interest on a loan applied on or after the 29th day of January, 1992, if, at the time the loan is applied, the company, part of whose ordinary share capital was or is acquired or, as the case may be, to which the money was or is lent, is a quoted company.

(4) The principal section is hereby amended by the addition after subsection (2) of the following subsection:

"(3) Relief shall not be given in respect of any payment of interest by an individual on a loan applied on or after the 24th day of April, 1992, for any of the purposes specified in subsection (1) unless the loan is applied for bona fide commercial purposes and not as part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax.".

Treatment for tax purposes of certain benefits payable under Social Welfare Acts.

15.—(1) This section applies to the following benefits under the Social Welfare (Consolidation) Act, 1981 , and every enactment which is to be construed together as one with that Act, that is to say—

( a ) disability benefit,

( b ) unemployment benefit,

( c ) injury benefit which is comprised in occupational injuries benefit, and

( d ) pay-related benefit.

(2) All amounts falling to be paid on foot of the benefits to which this section applies shall be deemed—

( a ) to be profits or gains arising or accruing from an employment and, accordingly—

(i) tax under Schedule E shall be charged on every person, to whom any such benefit is payable, in respect of all amounts falling to be paid on foot of such benefits, and

(ii) the tax so chargeable shall be computed under section 110 (1) (inserted by the Finance Act, 1991 ) of the Income Tax Act, 1967 ,

and

( b ) to be emoluments to which the provisions of Chapter IV of Part V of the Income Tax Act, 1967 , are applied by section 125 of that Act.

( 3 ) ( a ) This section shall come into operation on such day or days as may be fixed therefor by order or orders of the Minister for Finance either generally or with reference to any particular benefit or category of person in receipt of any particular benefit, and different days may be so fixed for different benefits or categories of persons in receipt of benefits.

( b ) Where an order is proposed to be made under this subsection, 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.

( 4 ) ( a ) The Revenue Commissioners may, in order to provide for the efficient collection and recovery of any tax due in respect of benefits to which this section applies, make regulations modifying the Income Tax (Employment) Regulations, 1960 ( S.I. No. 28 of 1960 ), in their application to those benefits, the employees in receipt of such benefits, the taxfree allowances appropriate to such employees, employers of such employees or certificates of tax-free allowances or tax deduction cards held by employers of such employees in respect of those employees.

( b ) Without prejudice to the generality of paragraph (a), regulations under that paragraph may include provision for the reallocation by the Revenue Commissioners (without the issue of amended notices of determination of tax-free allowances, amended certificates of tax-free allowances or amended tax deduction cards) of the tax-free allowances appropriate to such employees between the said benefits and other emoluments receivable by them.

( c ) Every regulation made under this subsection 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 21 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.

CHAPTER II Income Tax, Corporation Tax and Capital Gains Tax

Amendment of section 36 (construction of references to child, son and daughter in Tax Acts and Capital Gains Tax Act, 1975 ) of Finance Act, 1977 .

16.— Section 36 of the Finance Act, 1977 , is hereby amended by the substitution of the following subparagraph for subparagraph (ii) of paragraph (a):

"(ii) a child who is—

(I) adopted under the Adoption Acts, 1952 to 1991, or

(II) the subject of a foreign adoption (being a foreign adoption within the meaning of section 1 of the Adoption Act, 1991 ), which is deemed to have been effected by a valid adoption order made under the Adoption Acts, 1952 to 1991,".

Amendment of Chapter IX (profit sharing schemes) of Part I of and Third Schedule (profit sharing schemes) to Finance Act, 1982 .

17.—(1) Subject to subsection (2), Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 , are hereby amended, as respects the year of assessment 1992-93 and subsequent years of assessment, by the substitution in subsections (1) and (2) of section 56 and paragraph 1 (4) of the Third Schedule of "£2,000" for "£5,000", and the said subsections (1) and (2) and the said paragraph 1 (4), as so amended, are set out in the Table to this section.

( 2 ) ( a ) Where, in the case of an individual, the total of the initial market values of any shares appropriated to him in the year of assessment 1991-92 (whether under a single approved scheme or under two or more such schemes) is less than £2,000, then, subject to paragraph (b), subsection (1) shall apply and have effect for the year of assessment 1992-93 as if for "£2,000" there were substituted "an amount equal to the sum of £2,000 and the amount by which £2,000 exceeds the total of the initial market values of any shares appropriated to him (whether under a single approved scheme or under two or more such schemes) in the year of assessment 1991-92".

( b ) Where, in the case of an individual, paragraph (a) has effect for the year 1992-93—

(i) the shares represented by the excess shall be deemed, for all the purposes of Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 , to have been appropriated to the individual on the 5th day of April, 1992, and

(ii) if shares have been appropriated to the individual at different times during the year, the excess shall be regarded as represented by those shares issued earlier rather than those issued later.

( c ) In this subsection—

"approved scheme", "initial market value" and "shares" have the same meanings as they have in either or both Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 ;

"excess" means the amount referred to in paragraph (a), being the amount by which £2,000 exceeds the total of the initial market values of any shares appropriated to an individual (whether under a single approved scheme or under two or more such schemes) in the year of assessment 1991-92;

"individual" means a participant in an approved scheme.

TABLE

(1) If the total of the initial market values of all the shares which are appropriated to an individual in any one year of assessment (whether under a single approved scheme or under two or more such schemes) exceeds £2,000, subsections (4) to (7) shall apply to the excess shares, that is to say, any share which caused that limit to be exceeded and any share appropriated after that limit was exceeded.

(2) For the purposes of subsection (1), if a number of shares is appropriated to an individual at the same time under two or more approved schemes, the same proportion of the shares appropriated at that time under each scheme shall be regarded as being appropriated before the limit of £2,000 is exceeded.

(4) The scheme must provide that the total of the initial market values of the shares appropriated to any one participant in a year of assessment will not exceed £2,000.

Taxation of consideration for certain restrictive covenants, etc.

18.—(1) Chapter I of Part XXXVI of the Income Tax Act, 1967 , is hereby amended by the substitution of the following section for section 525:

"525.— (1) Where—

( a ) an individual who holds, has held or is about to hold an office or employment gives, in connection with his holding thereof, an undertaking (whether absolute or qualified and whether legally valid or not) the tenor or effect of which is to restrict him as to his conduct or activities; and

( b ) in respect of the giving of that undertaking by him, or of the total or partial fulfilment of that undertaking by him, any sum is paid, either to him or to any other person; and

( c ) apart from this section, the sum paid would not fall to be treated as profits or gains from the office or employment,

the said sum shall be deemed—

(i) to be profits or gains arising or accruing from the office or employment and, accordingly—

(I) in a case where the profits or gains from the office or employment are or would be chargeable to tax under Schedule E—

( A ) tax under Schedule E shall be charged thereon, and

( B ) the tax so chargeable shall be computed under section 110 (1) (inserted by the Finance Act, 1991 ), or

(II) in a case where the profits or gains from the office or employment are or would be chargeable to tax under Case III of Schedule D, tax under the said Case III shall be charged thereon,

and

(ii) in a case within paragraph (i) (I), to be emoluments to which the provisions of Chapter IV of Part V are applied by section 125 of the said Chapter,

for the year of assessment in which it is paid:

Provided that where the individual has died before the payment of the said sum this subsection shall have effect as if the said sum had been paid immediately before his death.

(2) Where valuable consideration otherwise than in the form of money is given in respect of the giving of, or of the total or partial fulfilment of, any undertaking, the preceding provisions of this section shall apply as if a sum had instead been paid equal to the value of that consideration.

(3) Notwithstanding the provisions of section 61, where any sum paid or valuable consideration given by a person carrying on a trade or profession is chargeable to tax in accordance with the provisions of subsection (1), the sum paid or the value of the consideration given, as the case may be, may be deducted as an expense in computing, for the purposes of Schedule D, the profits or gains of that person's trade or profession, as the case may be—

( a ) in the case of a person chargeable to income tax, for the basis period, or

( b ) in the case of a person chargeable to corporation tax, for the accounting period,

in which the said sum is paid or valuable consideration is given.

(4) Where any sum paid or valuable consideration given by an investment company (within the meaning of section 15 of the Corporation Tax Act, 1976 ) or a company to which the said section 15 applies by virtue of section 33 of that Act, is chargeable to tax in accordance with the provisions of subsection (1), the sum paid or the value of consideration given, as the case may be, shall, for the purposes of the said section 15, be treated as an expense of management for the accounting period in which the sum is paid or valuable consideration is given.

(5) ( a ) In this section 'office or employment' means any office or employment whatsoever such that the emoluments thereof, if any, are or would be chargeable to income tax under Schedule E, or under Case III of Schedule D, for any year of assessment.

( b ) In this section references to the giving of valuable consideration shall not include references to the mere assumption of an obligation to make over or provide valuable property, rights or advantages, but shall include references to the doing of anything in or towards the discharge of such an obligation.".

(2) Section 115 of the Income Tax Act, 1967 , is hereby amended by the substitution in subsection (1) of the following paragraph for paragraph (b):

"( b ) any sum chargeable to tax under section 525;".

(3) This section shall apply and have effect in relation to any sum paid or consideration given on or after the 24th day of April, 1992, in respect of the giving of, or the total or partial fulfilment of, any undertaking whether given before, on or after that date.

Treatment of patent royalties and related distributions.

19.—(1) Section 34 of the Finance Act, 1973 , is hereby amended by the insertion of the following subsection after subsection (2):

"(2A) Notwithstanding the provisions of subsection (2), an individual shall not be entitled to have any amount of income from a qualifying patent arising to him disregarded for any purpose of the Income Tax Acts to the extent that it—

( a ) is in excess of two-thirds of the amount arising to him in the period beginning on the 24th day of April, 1992, and ending on the 5th day of April, 1993,

( b ) is in excess of one-third of the amount arising to him in the year of assessment 1993-94, or

( c ) arises to him in the year of assessment 1994-95 or any subsequent year of assessment:

Provided that this subsection shall not apply or have effect in relation to income from a qualifying patent received by an individual who carried out, either solely or jointly with another person, the research, planning, processing, experimenting, testing, devising, designing, developing or other similar activity leading to the invention which is the subject of the qualifying patent.".

(2) As respects distributions received by a person on or after the 24th day of April, 1992, section 170 of the Corporation Tax Act, 1976 , is hereby amended—

( a ) by the insertion after the definition of "disregarded income" in subsection (1) of the following definition:

"'eligible shares' has the same meaning as in paragraph (a) of subsection (1A) of section 14 of the Finance Act, 1986 ;",

( b ) by the insertion in subparagraph (ii) of paragraph (a) of subsection (3) after "company" of "and the distribution is in respect of eligible shares", and

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

"(3A) ( a ) Subject to paragraph (b), where a person receives any distributions on or after the 24th day of April, 1992, subparagraph (i) of paragraph (a) of subsection (3) shall not apply to those distributions:

Provided that this paragraph shall not apply to—

(i) two-thirds of the total amount of distributions, being distributions (hereafter in this paragraph referred to as 'relevant distributions') to which subparagraph (i) of paragraph (a) of subsection (3) would apply apart from the foregoing provisions of this paragraph, received by the person in the period beginning on the 24th day of April, 1992, and ending on the 5th day of April, 1993, or

(ii) one-third of the total amount of relevant distributions received by the person in the year of assessment 1993-94.

( b ) Paragraph (a) shall not apply to any distribution received by a person, which is a distribution—

(i) in respect of eligible shares, or

(ii) made out of disregarded income, being income (hereafter in this subsection referred to, in relation to a person, as 'relevant income') which is referable to a qualifying patent in relation to which he carried out, either solely or jointly with another person, the research, planning, processing, experimenting, testing, devising, designing, development or other similar activity leading to the invention which is the subject of the qualifying patent.

( c ) For the purposes of paragraph (b), where a distribution for an accounting period is made by a company to a person in part out of relevant income, in relation to the person, and in part out of other disregarded income, the distribution shall be treated as if it consisted of two distributions, respectively, made out of relevant income and out of other disregarded income.".

Amendment of section 28 (farming: provision relating to relief in respect of increase in stock values) of Finance Act, 1980 .

20.—As respects disposals made on or after the 6th day of April, 1992, section 28 of the Finance Act, 1980 , is hereby amended in paragraph (b) of subsection (3)—

( a ) by the substitution in subparagraph (ii) of the following clause for clause (II) (inserted by the Finance Act, 1991 ):

"(II) the value of the said trading stock at the beginning of the first succeeding accounting period, or, where the farmer so elects, at the beginning of either the first and second, or the first and second and third succeeding accounting periods,",

and

( b ) by the substitution of the following paragraph for paragraph (A) (inserted by the Finance Act, 1990 ) of the proviso:

"(A) no deduction shall be allowed by virtue of section 12 of the Finance Act, 1976 , for any accounting period or periods for which a farmer has elected under the provisions of this subsection,".

Capital allowances for, and deduction in respect of, vehicles.

21.—(1) ( a ) Sections 25 to 29 of the Finance Act, 1973 , shall have effect, in relation to expenditure incurred on the provision or hiring of a vehicle to which those sections apply, as if for "£2,500", in each place where it occurs in those sections, there were substituted "£10,000".

( b ) The reference in paragraph (a) to expenditure incurred on the provision or hiring of a vehicle does not include—

(i) as respects the said sections 25 to 27, a reference to expenditure incurred before the 30th day of January, 1992, or incurred within 12 months after that day under a contract entered into before that day, and

(ii) as respects subsections (2) and (3) of the said section 28 and the said section 29, a reference to expenditure under a contract entered into before the said 30th day of January, 1992.

(2) Section 32 of the Finance Act, 1976 , shall have effect, in relation to qualifying expenditure (within the meaning of that section) incurred after the 29th day of January, 1992, as if for "£3,500", in each place where it occurs, there were substituted "£10,000".

Amendment of Chapter IV (interest payments by certain deposit takers) of Part I of Finance Act, 1986 .

22.—(1) Chapter IV of Part I of the Finance Act, 1986 , is hereby amended—

( a ) in subsection (1) of section 31-

(i) by the substitution of the following definition for the definition of "appropriate tax":

"'appropriate tax', in relation to a payment of relevant interest, means a sum representing income tax on the amount of that payment—

( a ) in the case of a relevant deposit or relevant deposits held in a special savings account, at the rate of 10 per cent., and

( b ) in the case of any other relevant deposit, at the standard rate in force at the time of payment;",

(ii) by the insertion of the following definitions after the definition of "interest":

"'operative date' means the date on which sections 37A and 37B (inserted by the Finance Act, 1992 ) come into operation by virtue of an order made by the Minister for Finance under section 22 of that Act;

'pension scheme' means an exempt approved scheme within the meaning of section 16 of the Finance Act, 1972 , or a retirement annuity contract or a trust scheme to which section 235 or section 235A (inserted by the Finance Act, 1974 ) of the Income Tax Act, 1967 , applies;",

(iii) in the definition of "relevant deposit"-

(I) by the substitution, in paragraph (a), of the following subparagraph for subparagraph (iii):

"(iii) Icarom p.l.c.,",

and

(II) by the insertion of the following paragraph after paragraph (e):

"( ee ) (i) which is made on or after the operative date by, and the interest on which is beneficially owned by, a company within the charge to corporation tax or a pension scheme, and

(ii) in respect of which a declaration of the kind mentioned in section 37B (inserted by the Finance Act, 1992 ) has been made to the relevant deposit taker;", and

(iv) by the insertion of the following definition after the definition of "return":

"'special savings account' means an account, opened on or after the operative date, in which a relevant deposit or relevant deposits made by an individual is or are held and in respect of which—

( a ) the conditions in subsection (1) of section 37A (inserted by the Finance Act, 1992 ) are satisfied, and

( b ) a declaration of the kind mentioned in subsection

(2) of that section has been made to the relevant deposit taker.",

( b ) in subsection (1) of section 35—

(i) by the deletion, in paragraph (c), of ", subject to paragraph (d),", and

(ii) by the deletion of paragraphs (d) and (e), and the said paragraph (c), as so amended, is set out in the Table to this section, and

( c ) by the insertion of the following sections after section 37:

Conditions and declarations relating to special savings accounts.

"37A.— (1) The conditions referred to in paragraph (a) of the definition of 'special savings account' (inserted by the Finance Act, 1992 ) in section 31 (1) are as follows—

( a ) the account shall be designated by the relevant deposit taker as a special savings account;

( b ) no withdrawal of money shall be made from the account within the period of three months commencing with the date on which it is opened;

( c ) the terms under which the account is opened shall require the individual to give a minimum notice of 30 days to the relevant deposit taker in relation to the withdrawal of any money therefrom;

( d ) there shall not be any agreement, arrangement or understanding in existence, whether express or implied, which influences or determines, or could influence or determine, the rate (other than an unspecified and variable rate) of interest which is paid or payable, in respect of the relevant deposit or relevant deposits held in the account, in, or in respect of, any period which is more than 24 months;

( e ) the relevant deposit or the aggregate of the relevant deposits held in the account, including any relevant interest added thereto, shall not, at any time, exceed £50,000;

( f ) the account shall not be opened by or held in the name of an individual who is not of full age;

( g ) the account shall be opened by and held in the name of the individual who is beneficially entitled to the relevant interest payable in respect of the relevant deposit or relevant deposits held therein;

( h ) except in the case of an account opened and held jointly by and only by a couple married to each other, the account shall not be a joint account;

( i ) except in the case of an account opened and held jointly by and only by a couple married to each other, either the same or any other relevant deposit taker shall not simultaneously hold another special savings account opened and held by an individual;

( j ) in the case of an account opened and held jointly by and only by a couple married to each other, they shall not simultaneously hold (either with the same or any other relevant deposit taker) any other special savings account either individually or jointly other than one other such account opened and held jointly by them.

(2) The declaration referred to in paragraph (b) of the definition of 'special savings account' in section 31 (1) is a declaration in writing to a relevant deposit taker which—

( a ) is made by the individual (hereafter in this section referred to as 'the declarer') to whom any interest payable in respect of the relevant deposit or relevant deposits held in the account in respect of which the declaration is made is payable by the relevant deposit taker, and is signed by the declarer,

( b ) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

( c ) declares that at the time when the declaration is made the conditions referred to in paragraphs (f) to (j) of subsection (1), are satisfied in relation to the account in respect of which the declaration is made,

( d ) contains the full name and address of the individual beneficially entitled to the interest payable in respect of the relevant deposit or relevant deposits held in the account in respect of which the declaration is made,

( e ) contains an undertaking by the declarer that if the conditions referred to in paragraphs (f) to (j) of subsection (1) cease to be satisfied in respect of the account in respect of which the declaration is made, the declarer will notify the relevant deposit taker accordingly, and

( f ) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.

(3) Subsection (2) of section 37 shall have effect as respects declarations of the kind mentioned in this section as it has effect as respects declarations of the kind mentioned in that section.

(4) Section 35 shall apply and have effect in relation to any relevant interest paid in respect of any relevant deposit held in a special savings account—

( a ) as if the following paragraph were substituted for paragraph (c) of subsection (1):

'(c) except for the purposes of a claim to repayment under section 39 (2), the amount of any payment of relevant interest (being relevant interest paid in respect of any relevant deposit held in a special savings account) shall not be reckoned in computing total income for the purposes of the Income Tax Acts,',

and

( b ) as if paragraphs (d) and (e) of subsection (1) were deleted.

(5) An account shall cease to be a special savings account if any of the conditions mentioned in subsection (1) cease to be satisfied and the provisions of subsection (4) shall not apply to any relevant interest in respect of any relevant deposit held in the account which is paid on or after the date on which the account ceases to be a special savings account.

Declarations by companies and pension schemes.

37B.—(1) The declaration referred to in paragraph (ee) (inserted by the Finance Act, 1992 ) of the definition 'relevant deposit' in section 31 (1) is a declaration in writing to the relevant deposit taker which—

( a ) is made by a person (hereafter in this section referred to as 'the declarer') to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker, and is signed by the declarer,

( b ) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

( c ) declares that at the time the declaration is made the interest on the deposit in respect of which the declaration is made is beneficially owned by a company within the charge to corporation tax or a pension scheme, as the case may be,

( d ) contains as respects the person beneficially entitled to the interest—

(i) that person's name and address, and

(ii) that person's tax reference number,

( e ) contains a certificate by the appropriate person that, to the best of his knowledge and belief, the declaration made in accordance with paragraph (c) and the information furnished in accordance with paragraph (d) are true and correct, and

( f ) contains such information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.

(2) Subsection (2) of section 37 shall have effect as respects declarations of the kind mentioned in this section as it has effect as respects declarations of the kind mentioned in that section.

(3) Where a return is required to be made by a relevant deposit taker under section 175 of the Income Tax Act, 1967 , in respect of interest on a deposit in respect of which a declaration has been made in accordance with the provisions of this section, that return shall include the tax reference number contained in the said declaration of the person beneficially entitled to the interest.

(4) In this section—

'appropriate person' means—

( a ) in relation to a company, the person or persons appointed as auditor of the company under section 160 of the Companies Act, 1963 , or under the law of the state in which the company is incorporated and which corresponds to that section, and

( b ) in relation to a pension scheme—

(i) in the case of an exempt approved scheme (within the meaning of section 16 of the Finance Act, 1972 ), the administrator (within the meaning of section 13 of that Act) of the scheme,

(ii) in the case of a retirement annuity contract to which section 235 or section 235A (inserted by the Finance Act, 1974 ) of the Income Tax Act, 1967 , applies, the person lawfully carrying on in the State the business of granting annuities on human life with whom the contract is made, and

(iii) in the case of a trust scheme to which the said section 235 or the said section 235A applies, the trustees of the trust scheme;

'tax reference number', in relation to a person, has the same meaning as is assigned to it in section 22 of the Finance Act, 1983 , in relation to a specified person within the meaning of that section.".

( 2 ) ( a ) Subparagraph (iii) (I) of paragraph (a) of subsection (1) shall be deemed to have come into operation on the 1st day of August, 1990.

( b ) Paragraph (b) of subsection (1) shall apply and have effect as respects the year 1993-94 and subsequent years of assessment.

( c ) Paragraph (c) of subsection (1) shall come into operation on such day as the Minister for Finance may by order appoint.

TABLE

( c ) the amount of any payment of relevant interest shall be regarded as income chargeable to tax under Case IV of Schedule D and under no other Case or Schedule and shall be taken into account in computing the total income of the person entitled to that amount, but no assessment to income tax shall be made in respect of relevant interest on the person receiving or entitled to the payment of the relevant interest.

Amendment of section 46 (limited partnerships: relief restrictions) of Finance Act, 1986 .

23.—(1) Section 46 of the Finance Act, 1986 , is hereby amended, in subsection (2)—

( a ) by the substitution, in paragraph (a), of "only against income consisting of profits or gains arising from the trade and" for ", otherwise than against income consisting of profits or gains arising from the trade,", and

( b ) by the substitution, in paragraph (b), of "only against profits or gains arising from the trade and" for ", otherwise than against profits or gains arising from the trade, or to another company,",

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

( 2 ) ( a ) This section shall apply and have effect, in relation to an amount given or allowed under any of the specified provisions within the meaning of section 46 of the Finance Act, 1986 , as respects a contribution (within the meaning of that section) by a limited partner to the trade of the limited partnership which is made on or after the 24th day of April, 1992.

( b ) In determining whether an amount is given or allowed under any of the specified provisions, within the meaning of section 46 of the Finance Act, 1986 , as respects a contribution to a trade, within the meaning of that section, on or after the 24th day of April, 1992, any amount which would not otherwise have been given or allowed by virtue of that section but for a contribution to a trade on or after the said date and on the basis that paragraph (a) had not been enacted, shall be treated as given or allowed as respects such a contribution.

(3) Notwithstanding subsections (1) and (2), this section shall apply in so far as the trade of a limited partnership consists of the management and letting of holiday cottages within the meaning of section 255 of the Income Tax Act, 1967 , where—

( a ) a written contract for the construction of the holiday cottages was signed and construction work had commenced before the 24th day of April, 1992, and

( b ) the construction work is completed before the 6th day of April, 1993,

as if references to a contribution to a trade by a limited partner on or after the 24th day of April, 1992, were references to such contribution on or after the 1st day of September, 1992.

TABLE

( a ) Where, in the case of an individual who is a limited partner in relation to a trade, an amount may, apart from this section, be given or allowed under any of the specified provisions—

(i) in respect of a loss sustained by him in the trade or of interest paid by him by reason of his participation in the trade, in a relevant year of assessment, or

(ii) as an allowance falling to be made to him for a relevant year of assessment either in taxing the trade or by way of discharge or repayment of tax to which he is entitled by reason of his participation in the trade,

such an amount may be given or allowed only against income consisting of profits or gains arising from the trade and only to the extent that the amount given or allowed or, as the case may be, the aggregate amount in relation to that trade, does not exceed the amount of his contribution to the trade as at the relevant time.

( b ) Where, in the case of a partner company which is a limited partner in relation to a trade, an amount may, apart from this section, be given or allowed under any of the specified provisions—

(i) in respect of a loss sustained by the partner company in the trade, or of charges paid by the partner company or another company by reason of its participation in the trade, in a relevant accounting period, or

(ii) as an allowance falling to be made to the partner company for a relevant accounting period either in taxing the trade or by way of discharge or repayment of tax to which it is entitled by reason of its participation in the trade,

such an amount may be given or allowed to the partner company only against profits or gains arising from the trade and only to the extent that the amount given or allowed, or, as the case may be, the aggregate amount does not exceed the partner company's contribution to the trade as at the relevant time.

Securities of Bord Gáis Éireann.

24.—(1) Part XXXII of the Income Tax Act, 1967 , is hereby amended—

( a ) by the insertion after section 467B (inserted by the Finance Act, 1989 ) of the following section:

"467C. — (1) Any debentures, debenture stock, bonds, notes, certificates of charge or other forms of security issued after the passing of the Finance Act, 1992 , by Bord Gáis Éireann shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 466 and that section shall apply accordingly.

(2) Notwithstanding anything contained in this Act, in computing for the purposes of assessment under Schedule D the amount of the profits or gains of Bord Gáis Éireann for any period for which accounts are made up, there shall be allowed as a deduction the amount of the interest on debentures, debenture stock, bonds, notes, certificates of charge or other forms of security which, by direction of the Minister for Finance given under section 466 as applied by this section, is paid by Bord Gáis Éireann without deduction of tax for such period.",

and

( b ) by the insertion in subsection (1) of section 474 after "467B," (inserted by the Finance Act, 1989 ) of "467C," and the said subsection (1), as so amended, is set out in the Table to this subsection.

TABLE

(1) This section applies to any stock or other security on which interest is payable without deduction of income tax by virtue of a direction given by the Minister for Finance in pursuance of section 467, 467A, 467B, 467C, 471, 472 or 473 or section 59 of the Finance Act, 1970 or section 92 of the Finance Act, 1973 .

(2) ( a ) Paragraph (d) of section 19 of the Capital Gains Tax Act, 1975 , is hereby amended, as on and from the passing of this Act, by the insertion after "the Electricity Supply Board," of "Bord Gáis Éireann," and the said paragraph (d), as so amended, is set out in the Table to this subsection.

( b ) As on and from the passing of this Act, section 41 of the Finance Act, 1982 , in so far as it relates to Bord Gáis Éireann, shall not apply or have effect.

TABLE

( d ) debentures, debenture stock, certificates of charge or other forms of security issued by the Electricity Supply Board, Bord Gáis Éireann, Radio Telefís Éireann, the Industrial Credit Corporation p.l.c., Bord Telecom Éireann, Irish Telecommunications Investments p.l.c., Córas Iompair Éireann, The Agricultural Credit Corporation Limited, Bord na Móna, Aerlínte Éireann, Teoranta, Aer Lingus, Teoranta or Aer Rianta, Teoranta.

Restriction of capital allowances on holiday cottages.

25.—Where, on or after the 24th day of April, 1992, a person incurs capital expenditure on the acquisition or construction of a building or structure which is, or is to be, an industrial building or structure by virtue of being a holiday cottage within the meaning of section 255 of the Income Tax Act, 1967 , and an allowance falls to be made in respect of that expenditure under section 254 (as amended by section 74 of the Finance Act, 1990 ) or 264 (as amended by section 52 of the Finance Act, 1986 ) of the Income Tax Act, 1967 —

( a ) (i) neither section 307 (as amended by section 27 of the Finance Act, 1990 ) of the Income Tax Act, 1967 , nor

(ii) subsection (2) of section 16 of the Corporation Tax Act, 1976 ,

shall apply or have effect as respects the whole or part (as the case may be) of any loss which would not have arisen but for the making of the said allowance, and

( b ) neither the proviso to subsection (1) of section 296 of the Income Tax Act, 1967 , nor subsection (6) of section 14 of the Corporation Tax Act, 1976 , shall apply or have effect as respects the said allowance:

Provided that this section shall not apply to expenditure incurred before the 6th day of April, 1993, on the acquisition or construction of a building or structure (hereafter in this proviso referred to as "the holiday cottage") which is, or is to be, an industrial building or structure by virtue of being a holiday cottage within the meaning of the said section 255 if—

( a ) a binding contract in writing for the construction of the holiday cottage was entered into, or

( b ) (i) a binding contract in writing for the purchase or lease of land for the construction of the holiday cottage was entered into, and

(ii) an application for planning permission for the construction of the holiday cottage was received by a planning authority,

before the 24th day of April, 1992.

Application and amendment of section 241 (wear and tear of machinery, plant, etc.) of Income Tax Act, 1967 .

26.—(1) As respects machinery or plant to which this section applies, section 241 of the Income Tax Act, 1967 , shall apply and have effect—

( a ) as if the following subsection were substituted for subsection (1) (including the provisos thereto):

"(1) Subject to the provisions of this Act, where a person carrying on a trade in any chargeable period has incurred capital expenditure on the provision of machinery or plant for the purposes of the trade—

( a ) an allowance shall be made to him for that chargeable period on account of the wear and tear of any of the machinery or plant which belongs to him and is in use for the purposes of the trade at the end of that chargeable period or its basis period and which, while used for the purposes of the trade, is wholly and exclusively so used,

( b ) the amount of the allowance shall, subject to subsection (6), be equal to 15 per cent. of the capital expenditure incurred as aforesaid, and

( c ) the allowance shall be made in taxing the trade:

Provided that where a chargeable period or its basis period consists of a period which is less than one year in length the allowance to be made under this section shall not exceed such portion of the amount specified in paragraph (b) as bears to that amount the same proportion as the length of the chargeable period or its basis period bears to a period of one year.",

and

( b ) as if subsections (7) and (8) were deleted.

(2) This section shall apply to machinery or plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) which, on or after the 1st day of April, 1992, is provided for use for the purposes of a trade, profession, employment or office.

(3) Section 4 of the Finance Act, 1968 , shall not apply or have effect in relation to machinery or plant to which this section applies.

(4) Section 241 of the Income Tax Act, 1967 , is hereby amended as respects capital expenditure incurred on or after the 24th day of April, 1992, by the insertion of the following subsection after subsection (6):

"(6A) No allowance shall be made under this section in respect of capital expenditure incurred on the construction of a building or structure which is, or which is deemed to be, an industrial building or structure within the meaning of section 255.".

(5) In relation to a case in which subsection (1) has had effect, any reference in the Tax Acts to an allowance made under section 241 of the Income Tax Act, 1967 , shall be construed as a reference to that allowance as determined pursuant to that section, as applied and amended by this section.

Amendment of section 255 (meaning of "industrial building or structure") of Income Tax Act, 1967 .

27.—(1) Section 255 of the Income Tax Act, 1967 , is hereby amended by the insertion of the following paragraph after paragraph (b) of subsection (1):

"( bb ) for the purposes of a trade which consists of the operation or management of an airport and which is an airport runway or an airport apron used solely or mainly by aircraft carrying passengers or cargo for hire or reward, or"

(2) Subsection (1) shall have effect in relation to capital expenditure incurred on or after the 24th day of April, 1992.

Extension and amendment of section 17 (tax deductions from payments to subcontractors in the construction industry) of Finance Act, 1970 .

28.—As on and from the 6th day of October, 1992, section 17 (as amended by section 128 of the Finance Act, 1991 ) of the Finance Act, 1970 , is hereby amended—

( a ) in subsection 1—

(i) by the substitution of the following definition for the definition of "certificate of authorisation":

"'certification of authorisation' means a certificate issued under subsection (7), which certificate shall be valid for such period as the Revenue Commissioners may by regulations made in accordance with subsection (5) provide;",

(ii) by the deletion of the definitions of "construction contract ", "construction payments card" and "construction tax deduction card",

(iii) by the insertion of the following definitions after the definition of "construction operations":

"'forestry operations' means operations of any of the following descriptions—

( a ) the thinning, lopping or felling of trees in woods, forests or other plantations;

( b ) the haulage or removal of thinned, lopped or felled trees;

( c ) the processing (including cutting or preserving) of wood from thinned, lopped or felled trees in sawmills or other like premises;

( d ) the haulage for hire of materials, machinery or plant for use, whether used or not, in any of the aforesaid operations;

'meat processing operations' means operations of any of the following descriptions—

( a ) the slaughter of cattle, sheep or pigs;

( b ) the division (including cutting or boning), sorting, packaging (including vacuum packaging) or branding of, or the application of any other similar process to, the carcasses, or any part of the carcasses, of slaughtered cattle, sheep or pigs;

( c ) the application of methods of preservation (including cold storage) to the carcasses, or any part of the carcasses, of slaughtered cattle, sheep or pigs;

( d ) the loading or unloading of the carcasses, or any part of the carcasses, of slaughtered cattle, sheep or pigs at any establishment where any of the operations referred to in paragraphs (a), (b) and (c) are carried on;",

(iv) by the substitution in the definition of "qualifying period" of "in the year preceding the year of assessment which is the first year of assessment of the period in respect of which a certificate of authorisation is sought" for "in the year preceding the year of assessment in respect of which a certificate of authorisation is sought, and

(v) by the insertion after the definition of "qualifying period" of the following definitions:

"'relevant contract' means a contract (not being a contract of employment) whereby a person (in this section referred to as 'the contractor') is liable to another person (in this section referred to as 'the principal')—

( a ) to carry out relevant operations; or

( b ) to be answerable for the carrying out of such operations by others, whether under a contract with him or under other arrangements made or to be made by him; or

( c ) to furnish his own labour, or the labour of others, in the carrying out of such operations;

'relevant operations' means construction operations, forestry operations or meat processing operations, as the case may be;

'relevant payments card' has the meaning assigned to it by subsection (8);

'relevant tax deduction card' has the meaning assigned to it by subsection (5).",

( b ) in subsection (2)—

(i) by the substitution of "relevant contract" for "construction contract" in both places where it occurs,

(ii) by the substitution of "relevant operations" for "construction operations" and

(iii) by the substitution of the following paragraph for paragraph (b) (inserted by the Finance Act, 1981 ):

"(b ) a person—

(i) carrying on a business which includes the erection of buildings or the manufacture, treatment or extraction of materials for use, whether used or not, in construction operations, or

(ii) carrying on a business of meat processing operations in an establishment approved and inspected in accordance with the European Communities (Fresh Meat) Regulations, 1987 ( S.I. No. 284 of 1987 ), or

(iii) carrying on a business which includes the processing (including cutting and preserving) of wood from thinned or felled trees in sawmills or other like premises or the supply of thinned or felled trees for such processing, or",

( c ) in subsection (4), by the insertion of the following clause after clause (A) of subparagraph (ii) of paragraph (c):

"(AA) under the Capital Gains Tax Acts,",

( d ) in subsection (5)—

(i) by the substitution of the following paragraph for paragraph (a):

"( a ) (i) the issue for a year of assessment, or, in relation to such class or classes of sub-contractor as may be specified in the regulations, for such longer period as may be so specified, of certificates of authorisation,

(ii) the refusal to issue, appeal against refusal to issue, recall or cancellation of certificates of authorisation and the surrender of such certificates, and

(iii) the production of documents or other material, including a photograph of the sub-contractor or, in a case where the sub-contractor is not an individual, a photograph of the individual by whom the certificate of authorisation will be produced in accordance with subsection (8) (a), in support of an application for a certificate of authorisation;",

and

(ii) by the substitution in paragraph (b) of "relevant payments cards" and "relevant tax deduction cards" for "construction payments cards" and "construction tax deduction cards" respectively,

( e ) in subsection (7)—

(i) by the substitution in subparagraph (i) of paragraph (a) of "relevant contracts" for "construction contracts"

(ii) by the substitution in subparagraph (iv) of paragraph (a) of "the Tax Acts, the Capital Gains Tax Acts or the Value-Added Tax Act, 1972 ," for "the Tax Acts, or the Acts relating to corporation profits tax", and

(iii) by the deletion of paragraph (c),

( f ) in subsection (8)—

(i) by the substitution in paragraph (a) of "relevant payments card" for "construction payments card", and

(ii) by the substitution in paragraph (b) of "relevant payments card" and "to which the relevant payments card relates" for "construction payments card" and "to which the sub-contractor's certificate of authorisation relates" respectively,

( g ) in subsection (9)—

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

"(iiia) in the case of a certificate issued to a company, there has been a change in control of the company,",

(ii) by the substitution of the following subparagraph for subparagraph (iv) of paragraph (a):

"(iv) a person to whom a certificate of authorisation was issued has failed to comply with any of the obligations imposed on him by the Tax Acts, the Capital Gains Tax Acts, the Value-Added Tax Act, 1972 , or by any regulations made thereunder in relation to—

(I) the payment or remittance of the taxes required to be paid or remitted under any of those Acts,

(II) the delivery of returns, and

(III) requests to supply to an inspector accounts of, or other information about, any business carried on by him,",

(iii) by the substitution in subparagraph (v) of paragraph (a) of "relevant contracts" for "construction contracts",

(iv) by the substitution in subparagraph (ii) of paragraph (b) of "relevant payments cards" and "relevant tax deduction card" for "construction payments cards" and "construction tax deduction card", respectively, and

(v) by the addition after paragraph (c) of the following paragraph:

"( d ) In paragraph (a) and subsection (10) (c) 'control' has the same meaning as in section 102 of the Corporation Tax Act, 1976 .",

and

( h ) in subsection (10)—

(i) by the insertion after "a certificate of authorisation" in subparagraph (i) of paragraph (a) of "or a relevant payments card",

(ii) by the substitution of "£1,000" for "£500" in paragraphs (a), (b) and (c),

(iii) by the substitution in paragraph (c) of "relevant payments card or relevant tax deduction card" for "construction payments card or construction tax deduction card" in both places where it occurs, and

(iv) by the addition after subparagraph (iv) of paragraph (c) of the following subparagraphs to that paragraph:

"(v) who fails to give a sub-contractor from whom tax has been deducted under subsection (2) a certificate of deduction in the prescribed form containing such particulars as are required to be entered therein by virtue of any regulations made under this section, or

(vi) who, being a company to which a certificate of authorisation has been issued under subsection (7), fails to notify the Revenue Commissioners of a change in control of the company,".

Amendment of Chapter V (Urban Renewal: Relief from Income Tax and Corporation Tax) of Part I of Finance Act, 1986 .

29.—Chapter V of Part I of the Finance Act, 1986 , is hereby amended—

( a ) in subsection (2) of section 41, by the substitution of "nine years" for "five years" in the definition of "the specified period";

( b ) in section 42—

(i) by the substitution, in subsection (1), of the following definition for the definition of "qualifying period" (as provided for by section 30 of the Finance Act, 1990 ):

"'qualifying period' means—

( a ) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of May, 1993, or

( b ) where section 41 (2) applies, the specified period:

Provided that where capital expenditure is incurred on the construction of any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the reference to the 31st day of May, 1993, in paragraph (a) of this definition shall be construed as a reference to the 31st day of May, 1994;",

and

(ii) by the insertion in subsection (4) of the following additional proviso to that subsection:

"Provided also that, notwithstanding section 51 (as amended by section 80 of the Finance Act, 1990 ) of the Finance Act, 1988 , as respects any capital expenditure incurred on or after the 25th day of January, 1996, on the construction of any qualifying premises the site of which is wholly within the Custom House Docks Area—

(i) any allowance made under section 264 of the Income Tax Act, 1967 , and increased under paragraph (a) of subsection (2) of section 25 of the Finance Act, 1978 , in respect of that expenditure, whether claimed in one chargeable period or more than one such period, shall not, in the aggregate, exceed 54 per cent. of the amount of that expenditure, and

(ii) where any allowance made under the said section 264 in respect of that expenditure is increased under the said section 25 for any chargeable period, no allowance shall be made in respect of that expenditure under section 254 of the Income Tax Act, 1967 .";

( c ) in subsection (1) (a) of section 44, by the substitution of the following definition for the definition of "qualifying period" (as provided for by section 30 of the Finance Act, 1990 ):

"'qualifying period' means—

( a ) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of May, 1993, or

( b ) where section 41 (2) applies, the specified period:

Provided that where qualifying expenditure is incurred on the construction of any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the reference to the 31st day of May, 1993, in paragraph (a) of this definition shall be construed as a reference to the 31st day of May, 1994;";

and

( d ) in subsection (1) (a) of section 45 (as amended by section 21 of the Finance Act, 1991 )—

(i) by the substitution of the following definition for the definition of "qualifying period" (as provided for by section 30 of the Finance Act, 1990 ):

"'qualifying period' means—

( a ) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of May, 1993, or

( b ) where section 41 (2) applies, the specified period:

Provided that in the case of a qualifying lease in relation to any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the reference to the 31st day of May, 1993, in paragraph (a) of this definition shall be construed as a reference to the 31st day of May, 1994;",

and

(ii) by the substitution, as on and from the 24th day of April, 1992, of the following subparagraph for subparagraph (I) of paragraph (i) of the definition of "qualifying premises":

"(I) which is an industrial building or structure within the meaning of section 255 (1) of the Income Tax Act, 1967 , and in respect of which capital expenditure is incurred in the qualifying period for which an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV or under Chapter I of Part XVI of that Act, or".

Amendment of section 27 (designated areas for urban renewal relief) of Finance Act, 1987 .

30.— Section 27 of the Finance Act, 1987 , is hereby amended by the substitution in subsection (1) (a) (ii) of "the 24th day of January, 1997" for "the 31st day of May, 1993" (inserted by section 31 of the Finance Act, 1990 ).

Amendment of section 4 (relief for expenditure on certain buildings in designated areas) of Finance Act, 1989 .

31.— Section 4 of the Finance Act, 1989 , is hereby amended, in subsection (1), by the substitution in the definition of "qualifying period" of "31st day of May, 1994" for "31st day of May, 1993" (as provided for by section 30 of the Finance Act, 1990 ).

Amendment of section 18 (date for payment of tax) of Finance Act, 1988 .

32.— Section 18 (as amended by section 52 of the Finance Act, 1991 ) of the Finance Act, 1988 , is hereby amended in paragraph (b) of subsection (3) (inserted by section 24 of the Finance Act, 1990 )—

( a ) by the substitution in subparagraph (ii) of "in the case of an assessment to income tax made on a chargeable person" for "in the case of a chargeable person who is chargeable to income tax",

( b ) by the substitution in subparagraph (ii) and in both of the provisos thereto of "the income tax payable" for "the tax payable", in each place where it occurs, and

( c ) by the substitution in the first proviso to subparagraph (ii) of "additional income tax" for "additional tax", in both places where it occurs,

and the said subparagraph (ii) (including the said provisos thereto), as so amended, is set out in the Table to this section.

TABLE

(ii) in the case of an assessment to income tax made on a chargeable person for the said chargeable period being a year of assessment, the income tax payable for the immediately preceding chargeable period:

Provided that for the purposes of this subparagraph—

(I) where the chargeable person was not a chargeable person for the immediately preceding chargeable period, the income tax payable for the immediately preceding chargeable period shall be taken to be nil, and

(II) where, after the due date for the payment of an amount of preliminary tax for a chargeable period which is a year of assessment, an amount of additional income tax for the immediately preceding chargeable period becomes payable, that additional income tax shall not be taken into account if, but only if, it became due and payable one month following the amendment to the assessment or the determination of the appeal, as the case may be, by virtue of the provisos (as amended by section 24 of the Finance Act, 1990 ) to subsection (4) or (5),

Provided also that, for the purpose of this subparagraph, where the chargeable person is chargeable to income tax for a chargeable period being the year of assessment 1991-92 or any subsequent year of assessment, the income tax payable for the immediately preceding chargeable period shall be determined without regard to any relief to which the chargeable person is, or may become, entitled for that immediately preceding chargeable period under Chapter III of Part I of the Finance Act, 1984 .

Amendment of section 21 (miscellaneous) of Finance Act, 1988 .

33.—(1) Section 21 of the Finance Act, 1988 , is hereby amended by the substitution of "the Tax Acts and the Capital Gains Tax Acts" for "the Tax Acts"-

( a ) in subsection (3) (as amended by the Finance Act, 1991 ), and

( b ) in both places where it occurs in subsection (4), and the said subsections (3) and (4), as so amended, are set out in the Table to this section.

(2) Subsection (1) shall be deemed to have come into operation on the 6th day of April, 1991.

TABLE

(3) Where the inspector or any other officer of the Revenue Commissioners acting with the knowledge of the inspector causes to issue, manually or by any electronic, photographic or other process, a notice of preliminary tax bearing the name of the inspector or a notice of assessment or a notice of an amendment of an assessment bearing the name of the inspector, the said notice of preliminary tax shall, for all the purposes of the Tax Acts and the Capital Gains Tax Acts, be deemed to have been given by the inspector to the best of his opinion and the said assessment or amended assessment to which the notice of assessment or notice of amended assessment relates, as the case may be, shall, for those purposes, be deemed to have been made by the inspector to the best of his judgment.

(4) An assessment which is otherwise final and conclusive shall not, for any purpose of the Tax Acts and the Capital Gains Tax Acts, be regarded as not final and conclusive or as ceasing to be final and conclusive by reason only of the fact that the inspector has amended or may amend the assessment pursuant to the provisions of section 14 and where, in the case of a chargeable person, the inspector elects under section 13 (4) not to make an assessment for a chargeable period, the provisions of the Tax Acts and the Capital Gains Tax Acts shall apply as if an assessment for that chargeable period made on the chargeable person had become final and conclusive on the date the notice of election is given.

Amendment of Chapter VII (Urban Renewal: Temple Bar and other areas) of Part I of Finance Act, 1991 .

34.—Chapter VII of Part 1 of the Finance Act, 1991 , is hereby amended—

( a ) in subsection (1) (a) of section 56—

(i) by the insertion in the definition of "qualifying period" in subparagraph (ii) of the following proviso to that definition:

"Provided that where relevant expenditure is incurred on any qualifying premises the foundation for which was laid in its entirety on or before the 31st day of May, 1993, the first-mentioned reference to the 31st day of May, 1993, in this definition shall be construed as a reference to the 31st day of May, 1994.",

and

(ii) by the insertion in the definition of "qualifying period" in subparagraph (iv) of the following proviso to that definition:

"Provided that—

(I) subject to paragraph (II), where relevant expenditure is incurred on any qualifying premises the foundation for which was laid in its entirety on or before the 28th day of January, 1992, the reference to the 31st day of March, 1992, shall be construed as a reference to the 31st day of July, 1992, and

(II) paragraph (I) shall not apply to expenditure to which the provisions of section 23 of the Finance Act, 1981 , are applied by virtue of the provisions of—

( A ) section 24 of that Act, or

( B ) section 21 or 22 of the Finance Act, 1985 ;";

( b ) in section 57, by the substitution of "the 31st day of May, 1994" for "the 31st day of May, 1993" in subsection (1) (b) (ii) and in the definition of "qualifying period" in subsection (3) (a) (ii); and

( c ) in section 58, by the substitution of "the 31st day of May, 1994" for "the 31st day of May, 1993" in both subsections (1) (b) (ii) and (3) (b) (i) and in the definition of "qualifying period" in subsection (3) (b) (ii).

Treatment of certain distributions received on or after 29th day of January, 1992.

35.—As respects distributions received by a person on or after the 29th day of January, 1992, the Corporation Tax Act, 1976 , is hereby amended as follows—

( a ) in Part IV by the insertion after section 66 of the following section—

Distributions received on or after 29th day of January, 1992 (Part IV).

"66A.— (1) In this section—

'the adjusted average relieved distribution', in relation to a relieved distribution received by a person from a company, means five-fourths of the average relieved distribution in relation to the relieved distribution received by the person from the company;

'the average relieved distribution', in relation to a relieved distribution received by a person from a company, means one-quarter of the total amount of relieved distributions received by the person from the company in the years 1987-88, 1988 89, 1989-90 and 1990-91;

'the relieved amount' means so much of a distribution to which section 64 applies as is determined by the formula—

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where—

A is the amount of the distribution,

B is the amount of the tax credit in respect of the distribution, and

C is the standard rate per cent. for the purposes of section 88 (2) in respect of the year of assessment in which the distribution is made;

'the relieved distribution' has the meaning assigned to it in subsection (2).

(2) Notwithstanding any other provision of the Tax Acts—

( a ) as respects distributions received by a person on or after the 29th day of January, 1992, for the purposes of determining his liability, if any, to income tax in respect of such distributions, and

( b ) as respects distributions received by a person in the year 1987-88 and subsequent years of assessment, for the purposes of applying the provisions of subsection (3) to distributions received by the person on or after the 29th day of January, 1992,

so much of a distribution to which section 64 applies as is the relieved amount shall be treated as a separate distribution (hereinafter in this section referred to, in particular, as 'the relieved distribution') received by the person in respect of which he shall not be entitled to a tax credit, and the remainder, if any, of the distribution to which section 64 applies shall be treated as a separate distribution received by him in respect of which the tax credit shall be the tax credit in respect of the distribution to which section 64 applies.

(3) Sections 66 and 67 shall not have effect as respects any distribution received by a person on or after the 29th day of January, 1992:

Provided that—

( a ) as respects the year 1991-92, two-thirds of the lesser of—

(i) the total amount of relieved distributions received by a person from a company on or after the 29th day of January, 1992, and before the 6th day of April, 1992, or

(ii) the amount by which the adjusted average relieved distribution in relation to those distributions exceeds the total amount, which may be nil, of relieved distributions received by the person from the company on or after the 6th day of April, 1991, and before the 29th day of January, 1992,

shall not be regarded as income for any of the purposes of the Income Tax Acts other than the purposes of section 54 of the Finance Act, 1974 ;

( b ) two-thirds of so much of the total amount of relieved distributions received by a person from a company in the year 1992-93 as does not exceed the adjusted average relieved distribution in relation to those distributions, shall not be regarded as income for any of the purposes of the Income Tax Acts other than the purposes of the said section 54; and

( c ) one-third of so much of the total amount of relieved distributions received by a person from a company in the year 1993-94 as does not exceed the adjusted average relieved distribution in relation to those distributions, shall not be regarded as income for any of the purposes of the Income Tax Acts other than the purposes of the said section 54.

(4) Where by virtue of this section sections 66 and 67 are not to apply to a distribution to which section 64 applies, then that distribution shall be ignored for the purposes of section 54 of the Finance Act, 1974 :

Provided that where an amount representing relieved distributions is not to be regarded as income for any of the purposes of the Income Tax Acts by virtue of this section, other than the purposes of the said section 54, it shall not be so ignored.",

and

( b ) in Part V by the insertion after section 76 of the following section—

"Distributions received on or after 29th day of January, 1992 (Part V).

76.— (1) In this section—

'the adjusted average distribution', in relation to a distribution received by a person from a company, means five-fourths of the average distribution in relation to the distribution received by the person from the company;

'the average distribution', in relation to a distribution received by a person from a company, means one-quarter of the total amount of distributions received by the person from the company in the years of assessment 1987-88, 1988-89, 1989-90 and 1990-91;

'distribution' means any distribution made out of income from exempted trading operations within the meaning of section 70.

(2) Where a person receives any distributions on or after the 29th day of January, 1992, subparagraph (i) of paragraph (a) of subsection (2) of section 76 shall not apply to those distributions:

Provided that this subsection shall not have effect in respect of—

( a ) as respects the year 1991-92, two-thirds of the lesser of—

(i) the total amount of distributions received by a person from a company on or after the 29th day of January, 1992, and before the 6th day of April, 1992, or

(ii) the amount by which the adjusted average distribution in relation to those distributions exceeds the total amount, which may be nil, of distributions received by the person from the company on or after the 6th day of April, 1991, and before the 29th day of January, 1992,

( b ) two-thirds of so much of the total amount of distributions received by a person from a company in the year 1992-93 as does not exceed the adjusted average distribution in relation to those distributions, and

( c ) one-third of so much of the total amount of distributions received by a person from a company in the year 1993-94 as does not exceed the adjusted average distribution in relation to those distributions.

(3) Where, by virtue of this section, subparagraph (i) of paragraph (a) of subsection (2) of section 76 is not to apply to an amount representing distributions received by a person from a company, those distributions shall be disregarded for the purposes of section 54 of the Finance Act, 1974 , to the extent of that amount.".

Option in relation to section 35 (certain unit trusts not to be collective investment undertakings) of Finance Act, 1990 .

36.—(1) Where the trustees of a unit trust scheme, within the meaning assigned to it by section 1 (1) of the Unit Trust Act, 1990, which, apart from section 35 of the Finance Act, 1990 , would be a collective investment undertaking for the purposes of section 18 of, and the First Schedule to, the Finance Act, 1989 , have, not later than the 1st day of November, 1992—

( a ) paid the capital gains tax, which would have been chargeable on them if—

(i) on the 31st day of March, 1992, they had disposed of all the assets of the unit trust scheme, and

(ii) the resulting chargeable gains were chargeable to tax at one half of the rate at which they would have been chargeable under the Capital Gains Tax Acts apart from this subparagraph,

and

( b ) given notice in writing to the Revenue Commissioners that they have paid that tax in accordance with paragraph (a),

then, notwithstanding the said section 35, the unit trust scheme (hereafter in this section referred to as "the relevant unit trust") shall be deemed to be, and to have been, a collective investment undertaking for the said purposes with effect from the 1st day of April, 1992.

( 2 ) ( a ) Where units in a relevant unit trust were held by a person on the 31st day of March, 1992, they shall be treated, for the purposes of computing chargeable gains accruing to him on or after the 1st day of April, 1992, as having been acquired by him on the 31st day of March, 1992.

( b ) Subsection (5A) (inserted by section 34 of the Finance Act, 1977 ) of section 31 of the Capital Gains Tax Act, 1975 , shall not apply to disposals on or after the 1st day of April, 1992, of units in a relevant unit trust.

(3) Where the consideration received for a disposal, or given for an acquisition, of an asset on the 31st day of March, 1992, is to be determined as a result of the provisions of this section, it shall be deemed to be an amount equal to the market value of the asset on the said day.

(4) For the purposes of this section "market value", in relation to any asset, has the meaning assigned to it by section 49 of the Capital Gains Tax Act, 1975 .

Application of section 25 (attribution of distributions to accounting periods) of Finance Act, 1989 , to interim dividends.

37.—(1) Section 25 (as amended by section 38 of the Finance Act, 1990 ) of the Finance Act, 1989 , shall have effect as respects dividends paid on or after the 6th day of April, 1992, as if in subsection (3) (a) for "6th day of April, 1991," there was substituted "6th day of April, 1997:

Provided that, subject to subsection (2), a company shall not be entitled, by virtue of this section, to specify, in accordance with subsection (1) of the said section 25, that a distribution, being an interim dividend or part of it, is to be treated as made for the accounting period in which it is made where—

( a ) the circumstances of the company are such that, if the distribution or the part of it, as the case may be, were treated as made for the accounting period in which it is made, the company would be unable, at the time when the interim dividend is paid, to determine without recourse to estimation, how much of the distribution or the part of it, as the case may be, would, in accordance with subsection (1) of section 45 (as amended by section 24 of the Finance Act, 1989 ) of the Finance Act, 1980 , be treated as a specified distribution for the purposes of subsection (2) of the said section 45, or

( b ) that treatment of the distribution or the part of it, as the case may be, as made for the accounting period in which it is made, would facilitate any arrangement whereby the tax credit in respect of a dividend received by a shareholder could exceed the tax credit, if any, in respect of a dividend received by another shareholder, notwithstanding that the shareholdings of those shareholders carry the same or substantially similar rights in respect of dividends and capital.

(2) The proviso to subsection (1) shall apply to a company—

( a ) the profits brought into charge to corporation tax of which are wholly or mainly referable to relevant trading operations within the meaning of subsection (1) (as amended by section 33 of the Finance Act, 1991 ) of section 39A (inserted by section 17 of the Finance Act, 1981 ) or subsection (1) of section 39B (inserted by section 30 of the Finance Act, 1987 ) of the Finance Act, 1980 , and

( b ) which—

(i) (I) is a trading or holding company owned by a consortium for the purposes of paragraph (b) of subsection (1) of section 44 of the Finance Act, 1983 , or a 51 per cent. subsidiary of a company resident in the State, and

(II) has not made an election under the proviso (inserted by section 51) to subsection (1) of the said section 44,

(ii) is referred to in subparagraph (ii) of paragraph (a) of subsection (1) of section 47 of the Finance Act, 1983 , as the first-mentioned company,

as if paragraph (b) were deleted from that proviso.

Distributions to non-residents.

38.—(1) As respects distributions made on or after the 6th day of April, 1992, section 83 of the Corporation Tax Act, 1976 , is hereby amended by the substitution for subsection (4) of the following subsection:

"(4) Where a person who is not resident in the State receives a distribution made by a company which is resident in the State that distribution shall not be regarded as income of the person for any purpose of the Income Tax Acts:

Provided that, for the purposes of determining whether and to what extent a tax credit in respect of a distribution shall be paid to a person, this section shall apply as if section 38 of the Finance Act, 1992 , had not been enacted.".

(2) The Revenue Commissioners may by notice in writing require a company which has made a distribution to furnish them, within such time as they may direct, with such particulars as they consider necessary to identify persons benefiting from the provisions of subsection (4) of section 83 of the Corporation Tax Act, 1976 .

Provisions relating to section 244 (allowance for Scientific research) of Income Tax Act, 1967 , etc.

39.—(1) For the purposes of the definition of scientific research, that definition shall, subject to subsection (2), be construed as including, and be deemed always to have included, a provision excluding from the meaning of that definition the following activities, that is to say:

( a ) exploring for specified minerals,

( b ) petroleum exploration, and

( c ) petroleum extraction.

(2) As respects activities carried on before the 29th day of January, 1992, subsection (1) shall not have effect for the purpose of computing any charge to income tax or corporation tax on a person who has, before the 3rd day of December, 1991, made a claim in respect of expenditure incurred in exploring for specified minerals or in respect of petroleum exploration activities or in respect of petroleum extraction activities.

(3) In this section—

"the definition of scientific research" means the definition of scientific research as enacted in section 5 of the Finance Act, 1946 , which definition was repealed and re-enacted in section 244 of the Income Tax Act, 1967 (being a consolidating enactment), and was subsequently substituted (without amendment) in the said section 244 by section 21 of, and paragraph 9 of the First Schedule to, the Corporation Tax Act, 1976 ;

"designated area" means an area standing designated for the time being by order under section 2 of the Continental Shelf Act, 1968 ;

"exploring for specified minerals" means searching in the State for deposits of specified minerals or on testing such deposits or winning access thereto, and includes the systematic searching for areas containing specified minerals and searching, by drilling or other means, for specified minerals within those areas but does not include operations which are operations in the course of developing or working a mine;

"licence" means—

( a ) an exploration licence,

( b ) a petroleum prospecting licence,

( c ) a petroleum lease, or

( d ) a reserved area licence, duly granted before the 11th day of June, 1968, in respect of an area in the State, or on or after the 11th day of June, 1968, in respect of either or both a designated area and an area in the State, and which was or may be so granted subject to such licensing terms as were presented to each House of the Oireachtas and includes any such licence the terms of which have been duly amended or varied from time to time;

"licensed area" means an area in respect of which a licence is in force;

"mine" means an underground excavation for the purpose of getting specified minerals;

"petroleum" includes:

( a ) any mineral oil or relative hydrocarbon and natural gas and other liquid or gaseous hydrocarbons and their derivatives or constituent substances existing in its natural condition in strata (including, without limitation, distillate, condensate, casinghead gasoline and such other substances as are ordinarily produced from oil and gas wells), and

( b ) any other mineral substance contained in oil or natural gas brought to the surface with them in the normal process of extraction, but does not include coal and bituminous shales and other stratified deposits from which oil can be extracted by distillation,

won or capable of being won under the authority of a licence;

"petroleum exploration activities" means activities of a person carried on by him or on his behalf in searching for deposits of petroleum in a licensed area, in testing or appraising such deposits or in winning access thereto for the purposes of such searching, testing or appraising, where such activities are carried on under a licence (other than a petroleum lease) authorising the activities and held by him or, if the person is a company, held by the company or a company associated with it;

"petroleum extraction activities" means activities of a person carried on by him or on his behalf under a petroleum lease authorising the activities and held by him or, if the person is a company, held by the company or a company associated with it in—

( a ) winning petroleum from a relevant field, including searching in that field for, and winning access to, such petroleum,

( b ) transporting as far as dry land petroleum that is so won from a place not on dry land, or

( c ) effecting the initial treatment and storage of petroleum that is so won from the relevant field;

"relevant field" means an area in respect of which a licence, being a petroleum lease, is in force;

"specified minerals" means the following minerals occurring in non-bedded deposits of such minerals, that is to say, barytes, felspar, serpentinous marble, quartz rock, soapstone, ores of copper, ores of gold, ores of iron, ores of lead, ores of manganese, ores of molybdenum, ores of silver, ores of sulphur and ores of zinc.

CHAPTER III Corporation Tax

Amendment of section 84A (limitation on meaning of "distribution") of Corporation Tax Act, 1976 .

40.—Section 84A (as amended by the Finance Act, 1991 ) of the Corporation Tax Act, 1976 , is hereby amended—

( a ) in paragraph (b) of subsection (3A) (inserted by the Finance Act, 1990 )-

(i) by the substitution of "as is paid in respect of relevant principal specified in the list referred to in subparagraph (iv)" for "as is paid in that period",

(ii) by the substitution in subparagraph (iv) of "before the 25th day of March, 1992, the specified trade of the borrower was included in a list prepared by the Industrial Development Authority and approved before that day" for "the specified trade of the borrower is selected by the Industrial Development Authority for inclusion in a list, approved",

( b ) as respects relevant principal advanced by a company on or after the 20th day of December, 1991, by the substitution of the following subsection for subsection (3B):

"(3B) ( a ) Notwithstanding subsections (2), (3) and (3A), any interest paid to a company in respect of relevant principal advanced by the company on or after the 20th day of December, 1991, shall not be treated as a distribution for the purposes of this Act in the hands of the company.

( b ) Where, apart from this paragraph, any interest paid to a company in respect of relevant principal advanced by the company on or after the 20th day of December, 1991, would not be treated as a distribution for the purposes of this Act in the hands of the company by virtue only of the provisions of paragraph (a), then the provisions of that paragraph shall not apply in relation to so much of that interest as is paid in respect of relevant principal specified in the list referred to in subparagraph (ii) of this paragraph if—

(i) the specified trade is a trade which the borrower commenced to carry on after the 31st day of January, 1990, or is a specified trade of the borrower in respect of which he is committed, under a business plan approved by the Industrial Development Authority, the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta, to the creation of additional employment,

(ii) before the 25th day of March, 1992, the specified trade of the borrower was included in a list prepared by the Industrial Development Authority and approved before that day by the Minister for Industry and Commerce and the Minister for Finance, which list specifies a particular amount of relevant principal in respect of each trade which amount is considered to be essential for the success of that trade, and

(iii) the borrower, or a company connected (within the meaning of section 157 (5)) with the borrower, is not a company which commenced to carry on relevant trading operations (within the meaning of section 39B of the Finance Act, 1980 ) after the 20th day of April, 1990, or intends to commence to carry on such trading operations:

Provided that this paragraph shall not apply to any interest in respect of any relevant principal advanced after the time the total of the amounts of relevant principal to which this paragraph applies, advanced by all lenders who have made such advances, exceeds the aggregate of—

(a) £250,000,000, and

(b) the excess, if any, of the amount specified in the proviso to paragraph (b) of subsection (3A) over the total of the amounts of relevant principal to which that paragraph applies advanced by all lenders who have made such advances.",

and

( c ) in paragraph (b) of subsection (4A)—

(i) by the insertion after subparagraph (i) of the following proviso:

"Provided that this subparagraph shall not apply as respects any relevant period commencing on or after the 20th day of December, 1991, if in that relevant period the said rate exceeds the rate on the basis of which interest would have fallen to be computed if the relevant principal had continued to be denominated in the currency in which it was denominated on the 30th day of January, 1991,",

(ii) in subparagraph (ii), with effect on and from the 30th day of January, 1991—

(I) by the deletion of "for the purposes of a specified trade", and

(II) by the insertion in clause (II) of "for the purposes of a specified trade" before "of a borrower",

and

(iii) by the insertion after subparagraph (ii) of the following proviso:

"Provided that this subparagraph shall not apply as respects any relevant period commencing on or after the 20th day of December, 1991—

( a ) to such amount of interest as is paid in respect of a period (which shall be deemed to be a separate relevant period) commencing on the 20th day of December, 1991, and ending on the 31st day of December, 1991, as exceeds an amount determined by reference to the rate referred to in subparagraph (A) of paragraph (b) where the relevant principal was advanced on the 20th day of December, 1991, under an agreement entered into before that day, and

( b ) in the case of any other interest, if in the relevant period or, where paragraph (a) applies, the part of the relevant period other than the period referred to in that paragraph, the rate on the basis of which interest in respect of the relevant security falls to be computed exceeds—

( A ) a rate approved by the Minister for Finance in consultation with the Minister for Industry and Commerce,

( B ) where it is lower than the rate so approved and the relevant principal was advanced on or after the 30th day of January, 1991, and before the 20th day of December, 1991, the rate which would have applied if the relevant principal had continued to be denominated in the currency in which it was denominated when it was advanced,".

Amendment of section 21 (amendment of Part IX (Schedule F and company distributions) of Corporation Tax Act, 1976 ) of Finance Act, 1989 .

41.— Section 21 of the Finance Act, 1989 , is hereby amended, as respects interest paid on or before the 31st day of December, 1991, by the substitution of the following paragraph for paragraph (b) of subsection (2):

"( b ) the interest or other distribution is paid on or before the 31st day of December, 1991, in respect of—

(i) a period before that date, and

(ii) a security issued before the 12th day of April, 1989.".

Amendment of Part XXXII (government and other public loans) of Income Tax Act, 1967 , and computation of losses.

42.—(1) Part XXXII of the Income Tax Act, 1967 , is hereby amended—

( a ) as respects securities acquired by a company after the 29th day of January, 1992, whether they were issued before or after that date, by the addition of the following proviso to section 464:

"Provided that, notwithstanding that a security has been issued with such condition, where the security is held by or for a branch or agency through which a company carries on a trade or business in the State, which is such a trade or business, as the case may be, that, if the security had been issued without such condition, interest on, or other profits or gains from, the security accruing to the company would be chargeable to corporation tax under Case I of Schedule D, or in accordance with the provisions of section 43 of the Corporation Tax Act, 1976 , then such interest and profits or gains shall be charged to tax as if the security had been issued without such condition.",

( b ) as respects securities acquired by a company after the 15th day of May, 1992, whether they were issued before or after that date, by the substitution for section 470 of the following section:

"Securities of Irish local authorities issued abroad.

470.— (1) Securities issued (whether before or after the commencement of this Act) outside the State by a local authority in the State for the purpose of raising any money which they are authorised to borrow, if issued under the authority of the Minister for Finance, shall not be liable to tax, except where they are held—

( a ) by persons domiciled in the State or ordinarily resident in the State, or

( b ) by or for a branch or agency through which a company carries on a trade or business in the State which is such a trade or business, as the case may be, that, if this section had not been enacted, interest on, or other profits or gains from them accruing to the company would be chargeable to corporation tax under Case I of Schedule D or in accordance with the provisions of section 43 of the Corporation Tax Act, 1976 .

(2) In this section 'local authority' includes any public body which is recognised as a local authority for the purpose of this section by the Minister for the Environment.",

and

( c ) as respects securities acquired by a company after the 15th day of May, 1992, whether they were issued before or after that date, by the addition of the following proviso to subsection (2) of section 474:

"Provided that, notwithstanding that a security has been issued as aforesaid with either or both such conditions, where the security is held by or for a branch or agency through which a company carries on a trade or business in the State, which is such a trade or business, as the case may be, that, if the security had been issued without any such conditions, interest on, or other profits or gains from, the security accruing to the company would be chargeable to corporation tax under Case I of Schedule D or in accordance with the provisions of section 43 of the Corporation Tax Act, 1976 , then such interest and profits or gains shall be charged to tax as if the security had been issued without any such conditions.".

(2) Notwithstanding subsection (5) of section 16 or subsection (3) of section 18 of the Corporation Tax Act, 1976 , in ascertaining for the purposes of those sections whether and to what extent a company has incurred a loss in carrying on a trade in the State through a branch or agency, the interest on, and other profits or gains from, a security held by or for the branch or agency, shall be treated as a trading receipt of the trade if such interest or other profits or gains would, if sections 464 , 470 and 474 of the Income Tax Act, 1967 , had not been enacted, have been so treated, or have been included in an amount so treated.

(3) Subsection (2) shall have effect for the purposes of ascertaining whether and to what extent a company has incurred a loss—

( a ) as if sections 470 and 474 of the Income Tax Act, 1967 , were not mentioned in that subsection, where, apart from that subsection, the company would be treated as having incurred a loss and that loss would be—

(i) set-off against the trading income or profits (whether of that company or any other company) of, or

(ii) incurred in,

an accounting period falling within the period from the 1st day of February, 1992, to the 15th day of May, 1992, and

( b ) where, apart from that subsection, the company would be treated as having incurred a loss and that loss would be—

(i) set-off against the trading income or profits (whether of that company or any other company) of, or

(ii) incurred in,

an accounting period ending on or after the 15th day of May, 1992:

Provided that the amount of relief against income or profits of an accounting period—

(I) ending before the 1st day of February, 1992, where paragraph (a) of subsection (3) applies, or

(II) ending before the 15th day of May, 1992, where paragraph (b) of subsection (3) applies,

for a loss shall not be reduced by virtue of subsection (2) unless the loss was incurred in an accounting period ending on or after the date concerned.

( 4 ) ( a ) For the purposes of subsections (2) and (3) and paragraph (b), an accounting period which begins before the 15th day of May, 1992, and ends on or after that date, shall be divided into one part, beginning on the day on which the accounting period begins and ending on the 14th day of May, 1992, and another part beginning on the 15th day of May, 1992, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods.

( b ) Where subsection (2) applies, for the purpose of ascertaining whether and to what extent a company has incurred a loss, by virtue of section 464 of the Income Tax Act, 1967 , being mentioned in that subsection, then for the purposes of subsections (2) and (3) an accounting period which begins before the 1st day of February, 1992, and ends on or after that date, shall be divided into one part, beginning on the day on which the accounting period begins and ending on the 31st day of January, 1992, and another part beginning on the 1st day of February, 1992, and ending on the day on which the accounting period ends, and both parts shall be treated as if they were separate accounting periods.

Building societies (taxation of certain transactions).

43.—(1) In this section—

"building society" means a building society incorporated, or deemed by section 124 (2) of the Building Societies Act, 1989 , to be incorporated, under that Act, and references to "society" shall be construed accordingly;

"security" means an asset which is not a chargeable asset for the purposes of capital gains tax by virtue of section 19 of the Capital Gains Tax Act, 1975 .

(2) Where on or after the 29th day of January, 1992, a society sells or transfers a security and, apart from this subsection, all of the profit or gain or loss on the sale or transfer would be taken into account in computing, for the purposes of assessment to corporation tax, the trading income of the society's trade, then so much of the amount of the profit or gain or loss on the sale or transfer shall not be so taken into account as does not exceed—

( a ) as respects sales or transfers in the period beginning on the 29th day of January, 1992, and ending on the 31st day of December, 1992, an amount equal to 75 per cent. of the profit or gain or loss,

( b ) as respects sales or transfers in the year 1993, an amount equal to 50 per cent. of the profit or gain or loss, and

( c ) as respects sales or transfers in the year 1994, an amount equal to 25 per cent. of the profit or gain or loss.

( 3 ) ( a ) Section 29 (as amended by section 27 of the Finance Act, 1991 ), other than paragraph (b) of subsection (2A), of the Finance Act, 1984 , shall apply to the sale or transfer on or after the 29th day of January, 1992, of a security by a society notwithstanding that all or a part of the profit or gain or loss on the sale or transfer of the security is taken into account in computing, for the purposes of assessment to corporation tax, the trading income of the society's trade:

Provided that the amount of interest which, apart from this proviso, is chargeable on the sale or transfer of a security under the said section 29 by virtue of this subsection shall be reduced by—

(i) as respects sales or transfers in the period beginning on the 29th day of January, 1992, and ending on the 31st day of December, 1992, 25 per cent. of the said amount,

(ii) as respects sales or transfers in the year 1993, 50 per cent. of the said amount, and

(iii) as respects sales or transfers in the year 1994, 75 per cent. of the said amount.

( b ) This subsection shall not apply to a sale or transfer of a security after the 31st day of December, 1994.

(4) Subsection (9) (as amended by section 34 of the Finance Act, 1986 ) of section 31 of the Corporation Tax Act, 1976 , is hereby repealed and shall be deemed not to have applied or had effect for accounting periods ending on or after the 1st day of April, 1989.

Amendment of Part III (special classes of companies) of Corporation Tax Act, 1976 .

44.—Part III of the Corporation Tax Act, 1976 , is hereby amended, as respects accounting periods ending on or after the 1st day of January, 1992, for the purposes of paragraphs (a), (b), (c) and (e) and as respects accounting periods ending on or after the 1st day of January, 1993, for the purposes of paragraphs (d) and f—

( a ) by the substitution for paragraph (a) of subsection (1) of section 33 of the following paragraph:

"( a ) there shall be deducted from the amount treated as expenses of management for any accounting period—

(i) any repayment or refund receivable in the period of the whole or part of a sum disbursed by the company (for that period or any earlier period) as expenses of management, including commissions (in whatever manner described),

(ii) reinsurance commissions earned by the company in the period, and

(iii) the amount of any fines or fees receivable in the period or profits arising from reversions in the period,

and in calculating profits arising from reversions the company may set off against those profits any losses arising from reversions in any previous accounting period during which any enactment granting this relief was in operation so far as they have not already been so set off, and",

( b ) by the addition after subsection (2) of section 33 of the following subsection:

"(3) The relief under this section available to an overseas life assurance company in respect of its expenses of management shall be limited to expenses attributable to the life assurance business carried on by the company at or through its branch or agency in the State.",

( c ) by the insertion after section 33 of the following section:

" Acquisition expenses.

33A.— (1) For the purposes of this section and subject to subsections (2), (3) and (4), the acquisition expenses for any period of an assurance company carrying on life assurance business shall be such of the following expenses of management, including commissions (in whatever manner described), as are for that period attributable to the company's life assurance business (excluding pension business and general annuity business), that is to say:

( a ) expenses of management which are disbursed solely for the purpose of the acquisition of business, and

( b ) so much of any other expenses of management which are disbursed partly for the purpose of the acquisition of business and partly for other purposes as are properly attributable to the acquisition of business,

reduced by—

(i) any repayment or refund receivable in the period of the whole or part of management expenses falling within paragraph (a) or (b) and disbursed by the company (for that period or any earlier period), and

(ii) reinsurance commission earned by the company in that period which is referable to life assurance business (excluding pension business and general annuity business).

(2) Subsection (1) shall not apply to acquisition expenses in respect of policies of life assurance issued before the 1st day of April, 1992, but without prejudice to the application of that subsection to any commission (in whatever manner described) attributable to a variation on or after that date in a policy of life assurance issued before that date, and, for this purpose, the exercise of any rights conferred by a policy shall be regarded as a variation of it.

(3) In subsection (1) 'the acquisition of business' includes the securing on or after the 1st day of April, 1992, of the payment of increased or additional premiums in respect of a policy of assurance which has already been issued before, on or after that date.

(4) For the purposes of subsection (1) and in relation to any period, the expenses of management attributable to a company's life assurance business (excluding pension business and general annuity business) are expenses—

( a ) which are disbursed for that period (disregarding any treated as so disbursed by subsection (2) of section 15), and

( b ) which, disregarding subsection (5), are deductible as expenses of management of such life assurance business in accordance with section 33.

(5) Notwithstanding anything contained in section 33 and subject to subsection (6), only one-seventh of the acquisition expenses for any accounting period (hereafter in this section referred to as 'the base period') shall be treated as deductible under that section for the base period, and in subsections (7) and (8) any reference to the full amount of the acquisition expenses for the base period is a reference to the amount of those expenses which would be deductible for that period apart from this subsection.

(6) Subsection (5) shall have effect in the case of acquisition expenses for an accounting period or part of an accounting period falling wholly within the year ending on—

( a ) the 31st day of December, 1992, as if for one-seventh there were substituted five-sevenths, and

( b ) the 31st day of December, 1993, as if for one-seventh there were substituted three-sevenths.

(7) Where, by virtue of subsection (5) and, where appropriate, subsection (6), only a fraction of the full amount of the acquisition expenses for the base period is deductible under section 33 for that period, then, subject to subsection (8) a further one-seventh of the full amount shall be so deductible for each succeeding accounting period after the base period until the whole of the full amount has become so deductible, except that, for any accounting period of less than a year, the fraction of one-seventh shall be proportionately reduced.

(8) For any accounting period for which the fraction of the full amount of the acquisition expenses for the base period which would otherwise be deductible in accordance with subsection (7) exceeds the balance of those expenses which has not become deductible for earlier accounting periods, only that balance shall be deductible.",

( d ) by the insertion after section 46 of the following sections:

"Deemed disposal and reacquisition of certain assets.

46A.— (1) In this section and section 46B—

'average', in relation to two amounts, means one-half of the aggregate of those two amounts;

'closing', in relation to an accounting period, means the position at the end of the valuation period which coincides with that accounting period or in which that accounting period falls;

'collective investment undertaking' has the meaning assigned to it in section 18 of the Finance Act, 1989 ;

'foreign life assurance fund' has the meaning assigned to it in section 42;

'investment reserve', in relation to an assurance company, means the excess of the value of the assets of the company's life business fund over the liabilities of the life business;

'life business fund' means the fund maintained by an assurance company in respect of its life assurance business or, where the company carries on both ordinary life assurance business and industrial assurance business, both of the funds so maintained;

'linked assets' means assets of an assurance company which are identified in its records as assets by reference to the value of which benefits provided for under a policy or contract are to be determined;

'market value' has the meaning assigned to it in section 49 of the Capital Gains Tax Act, 1975 ;

'opening', in relation to an accounting period, means the position at the beginning of the valuation period which coincides with that accounting period or in which that accounting period falls;

'trading company' means a company—

( a ) whose business consists of the carrying on of insurance business, or the carrying on of any other trade which does not consist to any extent of dealing in commodities, currency, securities, debts or other assets of a financial nature, or

( b ) whose business consists wholly or mainly of the holding of shares or securities of trading companies which are its 90 per cent. subsidiaries;

'units' has the same meaning as it has in section 18 of the Finance Act, 1989 ;

'with-profits liabilities' means liabilities in respect of policies or contracts under which the policy holders or annuitants are eligible to participate in surplus.

(2) Where, on the day on which the accounting period of an assurance company ends, the assets of its life business fund include—

( a ) units in a collective investment undertaking, or

( b ) relevant interests in an offshore fund,

then, subject to the following provisions of this section and to section 46B, the company shall, for the purposes of corporation tax on capital gains, be deemed to have disposed of and immediately reacquired each of those assets at its market value on the said day:

Provided that, as respects a disposal of such assets, being a disposal which is deemed to have been made by virtue of this section and not any other disposal, subsection (1) of section 3 of the Capital Gains Tax (Amendment) Act, 1978 , shall apply as if paragraph (b) had been deleted from subsection (3) of the said section 3.

(3) Subsection (2) shall not apply to assets linked solely to pension business or to assets of the foreign life assurance fund and, in relation to other assets which are not assets linked solely to life assurance business (excluding pension business and general annuity business), shall apply only to the relevant chargeable fraction for an accounting period of each class of asset.

(4) In subsection (3) 'the relevant chargeable fraction for an accounting period'-

( a ) in relation to linked assets, means the fraction of which—

(i) the denominator is the average of such of the opening and closing life business liabilities as are liabilities in respect of benefits to be determined by reference to the value of linked assets, other than assets linked solely to life assurance business (excluding pension business and general annuity business) or pension business and assets of the foreign life assurance fund, and

(ii) the numerator is the average of such of opening and closing liabilities within subparagraph (i) as are liabilities of business the profits of which are not charged to tax under Case I or Case IV of Schedule D,

and

( b ) in relation to assets other than linked assets, means the fraction of which—

(i) the denominator is the aggregate of—

(I) the average of the opening and closing life business liabilities, other than liabilities in respect of benefits to be determined by reference to the value of linked assets and liabilities of the foreign life assurance business, and

(II) the average of the opening and closing amounts of the investment reserve,

and

(ii) the numerator is the aggregate of—

(I) the average of the opening and closing liabilities within subparagraph (i) as are liabilities of business the profits of which are not charged to tax under Case I or Case IV of Schedule D, and

(II) the average of the appropriate parts of the opening and closing amounts of the investment reserve.

(5) ( a ) In this subsection 'liabilities' does not include the liabilities of the foreign life assurance business.

( b ) In subsection (4) 'appropriate part' in relation to the investment reserve, means—

(i) where none, or none but an insignificant proportion, of the liabilities of the life business are with-profits liabilities, the part of that reserve which bears to the whole the same proportion as the amount of the liabilities of business, the profits of which are not charged to tax under Case I or Case IV of Schedule D, which are not linked liabilities bears to the whole amount of the liabilities of the life business which are not linked liabilities, and

(ii) in any other case, the part of that reserve which bears to the whole the same proportion as the amount of the with-profits liabilities of business, the profits of which are not charged to tax under Case I or Case IV of Schedule D, bears to the whole amount of the with-profits liabilities of the life business.

(6) For the purposes of this section assets of the foreign life assurance fund and liabilities of the foreign life assurance business shall be left out of account in determining the investment reserve.

(7) For the purposes of this section an interest is a relevant interest in an offshore fund if—

( a ) it is a material interest in an offshore fund for the purposes of Chapter VII of Part 1 of the Finance Act, 1990 , or

( b ) it would be such an interest if the shares and interests excluded by subsections (6) and (8) of section 65 of the Finance Act, 1990 , were limited to shares or interests in trading companies.

Gains or losses arising by virtue of section 46A.

46B— (1) Subject to subsections (2) and (3), chargeable gains or allowable losses which would otherwise accrue on disposals deemed by virtue of section 46A to have been made in a company's accounting period (other than a period in which the company ceased to carry on life business) shall be treated, subject to paragraphs (b) and (c), as not accruing to it, but instead—

( a ) there shall be ascertained the difference (hereafter in this section referred to as 'the net amount') between the aggregate of those gains and the aggregate of those losses, and

( b ) one-seventh of the net amount shall be treated as a chargeable gain or, where it represents an excess of losses over gains, as an allowable loss accruing to the company in the accounting period, and

( c ) a further one-seventh shall be treated as a chargeable gain or, as the case may be, as an allowable loss accruing in each succeeding accounting period until the whole amount has been accounted for.

(2) For any accounting period of less than one year, the fraction of one-seventh referred to in subsection (1) (c) shall be proportionately reduced; and where this subsection has had effect, in relation to any accounting period before the last for which subsection (1) (c) applies, the fraction treated as accruing in that last accounting period shall be reduced so as to secure that no more than the whole of the net amount has been accounted for.

(3) Where a company ceases to carry on life business before the beginning of the last of the accounting periods for which paragraph (c) of subsection (1) would apply in relation to a net amount, the fraction of that amount that is treated as accruing in the accounting period in which the company ceases to carry on life business shall be such as to secure that the whole of the net amount has been accounted for.",

( e ) by the deletion of section 47, and

( f ) by the insertion, in subsection (1) of section 50, of "including sections 46A and 46B (inserted by the Finance Act, 1992 )", after "sections 33 to 49".

Credit for bank levy.

45.—(1) ( a ) In this section—

"accounting profit" means the amount of profit, after taxation and before extraordinary items—

(i) shown in the profit and loss account—

(I) in the case of a company resident in the State, which is required under section 148 of the Companies Act, 1963 , to be laid before the annual general meeting of the company, or which would be so shown but for subsection (4) of section 149 of the said Act of 1963, and

(II) in the case of a company which is not resident in the State and which is carrying on a trade in the State through a branch or agency, of the said branch or agency and which is certified by the auditor appointed under section 160 of the Companies Act, 1963 , or under the law of the state in which the company is incorporated and which corresponds to that section, as presenting a true and fair view of the profit or loss attributable to the said branch or agency,

(ii) reduced by the amount of such profit as is attributable to—

(I) dividends received from companies resident in the State which are members of the group of which that company is a member,

(II) gains on disposal of capital assets,

(III) relevant trading operations within the meaning of section 39B (inserted by the Finance Act, 1987 ) of the Finance Act, 1980 ,

(IV) trading operations carried on outside of the State and in respect of which the company is chargeable to corporation tax in the State and to tax on income in another state, and

(V) dividends received from companies which are not resident in the State,

and

(iii) increased—

(I) as respects income from sources specified in subparagraphs (III), (IV) and (V) of paragraph (ii), by an amount determined by the formula—

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where—

T is the corporation tax chargeable in respect of that income computed in accordance with the provisions of the Corporation Tax Acts and after allowing relief under Chapter VI of Part I of the Finance Act, 1980 , and Part XXII of the Income Tax Act, 1967 , and

R is the rate of corporation tax for the accounting period concerned and to which section 1 of the Corporation Tax Act, 1976 , relates:

Provided that the proviso to subsection (1B) of section 13 (as amended by the Finance Act, 1988 ) of the Corporation Tax Act, 1976 , shall apply for the purposes of this subparagraph as it applies for the purposes of that section, and

(II) by the amount of stamp duty charged under section 200, section 64 of the Finance Act, 1989 , or section 108 of the Finance Act, 1990 , and under section 94 of the Finance Act, 1986 , as has been taken into account in computing the said amount of profit, after taxation and before extraordinary items;

"adjusted group base tax", in relation to a relevant period, means—

(i) an amount determined by the formula—

[image not available: a9y1992s45-2.bmp]

where—

T is the group base tax,

P is the group profit of the relevant period, and

B is the group base profit,

(ii) if it is greater, the group advance corporation tax of the relevant period;

"advance corporation tax", in relation to a relevant period, means the aggregate of the amounts of advance corporation tax paid or treated as paid by a company, and not repaid, under Chapter VII of Part I of the Finance Act, 1983 , in respect of distributions made in accounting periods falling wholly or partly within the relevant period; and, where an accounting period falls partly within a relevant period, the aggregate shall include a part of the advance corporation tax so paid proportionate to the part of the accounting period falling within the said relevant period;

"base profit", in relation to a company, means one-half of the aggregate of the amounts of accounting profit of a company for accounting periods falling wholly or partly in the period beginning on the 1st day of April, 1989, and ending on the 31st day of March, 1991; and, where an accounting period falls partly within the said period, the aggregate shall include a part of the accounting profit of the accounting period proportionate to the part of the accounting period falling within the said period;

"base tax" means one-half of the aggregate of the corporation tax, chargeable on a company, exclusive of the part of the company's profits attributable to chargeable gains and before the set off of advance corporation tax under Chapter VII of Part I of the Finance Act, 1983 , for accounting periods falling wholly or partly in the period beginning on the 1st day of April, 1989, and ending on the 31st day of March, 1991; and, where an accounting period falls partly within the said period, the aggregate shall include a part of the corporation tax so chargeable for the accounting period proportionate to the part of the accounting period falling within the said period;

"group advance corporation tax", in relation to a relevant period, means the aggregate of the amounts of advance corporation tax in relation to the relevant period of companies which, throughout the relevant period, are members of the group;

"group base profit" means the aggregate of the amounts of base profit of companies which, throughout the relevant period, are members of the group;

"group base tax" means the aggregate of the amounts of base tax of companies which, throughout the relevant period are members of the group:

Provided that where the amount of the group base tax is an amount which is—

(i) greater than 43 per cent., or

(ii) lower than 10 per cent.,

of the group base profit, computed in accordance with this section but without regard to subparagraphs (III), (IV) and (V) of paragraph (ii), or subparagraph (I) of paragraph (iii), of the definition of accounting profit, the group base tax shall be deemed to be an amount equal to 25 per cent. of the said group base profit as so computed;

"group profit", in relation to a relevant period, means the aggregate of the amounts of profit of the relevant period of companies which, throughout the said period, are members of the group;

"group tax liability", in relation to a relevant period, means the aggregate of the amounts of tax liability of the relevant period of companies which, throughout the said period, are members of the group;

"levy payment" means the aggregate of the amounts charged in the year 1992 or in any later year under section 200 and which have been paid on or before the date by which the amounts are payable by companies which are members of a group;

"profit", in relation to a relevant period, means the aggregate of the accounting profit, computed on the same basis as that on which the base profit of the company is computed, of a company for accounting periods falling wholly or partly within the relevant period; and, where an accounting period falls partly within a relevant period, the aggregate shall include a part of the accounting profit of the accounting period proportionate to the part of the accounting period falling within the said relevant period;

"relevant period", in relation to a levy payment, means a period beginning on the 1st day of April preceding the date on or before which the levy payment falls to be made and ending on the 31st day of March next after the said date;

"tax liability", in relation to a relevant period, means the aggregate of the corporation tax which, apart from this section, would be chargeable on a company, exclusive of the part of the company's profits attributable to chargeable gains and before the set-off of advance corporation tax under Chapter VII of Part I of the Finance Act, 1983 , for accounting periods falling wholly or partly within the relevant period; and, where an accounting period falls partly within the said period, the aggregate shall include a part of the corporation tax so chargeable for the accounting period proportionate to the part of the accounting period falling within the said period.

( b ) For the purposes of this section—

(i) two companies shall be deemed to be members of a group if one is a 75 per cent. subsidiary of the other or both are 75 per cent. subsidiaries of a third company:

Provided that—

(I) in determining whether one company is a 75 per cent. subsidiary of another, the other company shall be treated as not being the owner—

( A ) of any share capital which it owns directly in a company if a profit on sale of the shares would be treated as a trading receipt of its trade, or

( B ) any share capital which it owns indirectly, and which is owned directly by a company for which a profit on the sale of the shares would be a trading receipt,

and

(II) a company which is an assurance company within the meaning of section 50 of the Corporation Tax Act, 1976 , shall not be a member of a group,

(ii) sections 108 to 114 of the Corporation Tax Act, 1976 , shall apply for the purposes of this paragraph as they apply for the purposes of Part XI of that Act,

(iii) a company and all its 75 per cent. subsidiaries form a group, and where that company is a member of a group as being itself a 75 per cent. subsidiary that group shall comprise all its 75 per cent. subsidiaries and the first-mentioned group shall be deemed not to be a group:

Provided that a company which is not a member of a group shall be treated as if it were a member of a group which consists of that company and accordingly, references to group advance corporation tax, group base profit, group base tax, group profit and group tax liability shall be construed as if they were, respectively, references to advance corporation tax, base profit, base tax, profit and tax liability of that company,

(iv) the part of a company's profits attributable to chargeable gains for an accounting period shall be taken to be the amount brought into the company's profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description,

(v) the income or profit attributable to any trading operations or dividends shall be such amount of the said income or profit as appears to the inspector or, on appeal, to the Appeal Commissioners to be just and reasonable, and

(vi) corporation tax chargeable in respect of any income is the corporation tax which would not have been chargeable but for that income.

(2) Where, for a relevant period in relation to a levy payment, the group tax liability exceeds the adjusted group base tax of that relevant period, all or part of the levy payment, not being greater than the excess of the said group tax liability over the said adjusted group base tax, may be set against the group tax liability of the relevant period in accordance with this section.

(3) Where, under subsection (2), an amount of levy payment may be set against the group tax liability of a relevant period, so much of the amount as bears to that amount the same proportion as the tax liability of the relevant period of a company which is a member of the group bears to the group tax liability of the relevant period shall be apportioned to the said company:

Provided that the companies which are members of the group may, by giving notice in writing to the appropriate inspector within a period of 9 months after the end of the relevant period, elect to have the said amount apportioned in such manner as is specified in the notice.

In this subsection "appropriate inspector" has the meaning assigned to it in section 9 of the Finance Act, 1988 .

(4) Where an amount is apportioned to a company under subsection (3), that amount shall be set against the tax liability of the relevant period of the said company and to the extent that an amount is so set off, it shall be treated, for the purposes of the Corporation Tax Acts, as if it were a payment of corporation tax made on the day on which the said corporation tax falls to be paid:

Provided that an amount, or part of an amount, which falls to be treated as if it were a payment of corporation tax may not be repaid to a company by virtue of a claim to relief under the Corporation Tax Acts or for any other reason.

(5) Where, under subsection (4), an amount is to be set against the tax liability of a relevant period of a company and the tax liability of the relevant period consists of the aggregate of corporation tax chargeable for more accounting periods than one, the amount shall be set against the corporation tax of each of those accounting periods in the proportion which the corporation tax of the accounting period or the part of the accounting period, as the case may be, and which is included in the tax liability of the relevant period bears to the tax liability of the said relevant period.

(6) Where—

( a ) the end of an accounting period (hereafter in this subsection referred to as "the first-mentioned accounting period") of a company which is a member of a group does not coincide with the end of the relevant period,

( b ) the tax liability of—

(i) one or more accounting periods of the company ending after the end of the first-mentioned accounting period, or

(ii) one or more accounting periods of any other member of the group ending after the end of the first-mentioned accounting period,

falls to be taken into account in determining the amount of the levy payment which may be set off under this section against the corporation tax of—

(I) the first-mentioned accounting period, or one or more accounting periods ending before the end of that period, of the company, or

(II) one or more accounting periods of any other member of the group ending on or before the end of the first-mentioned accounting period,

and

( c ) on the specified return date (within the meaning of section 9 of the Finance Act, 1988 ) it is not possible—

(i) for the first-mentioned accounting period, or any other accounting period ending before the end of that period, of the company, or

(ii) for one or more accounting periods of any other member of the group ending on or before the end of the first-mentioned accounting period,

to determine the amount of the levy payment which may be so set off,

then, the amount of levy payment which may be set off under this section against the corporation tax of an accounting period shall be taken to be the amount which would have been so set off if a period, that is to say a period of 12 months ending on the last day of the most recent accounting period of the parent company (being a member of the group which is not a subsidiary of any other member of the group) which ends in the relevant period, were the relevant period:

Provided that where a part only of that period of 12 months falls after the 31st day of March, 1992, the amount to be set off under this subsection shall be reduced to an amount proportionate to the part of the said period of 12 months falling after that day.

( 7 ) ( a ) A company shall deliver, as soon as they become available, such particulars as are required to determine the amount of levy payment which, apart from subsection (6), falls to be set off against the corporation tax of an accounting period.

( b ) Where an amount of levy payment has been set off against corporation tax of an accounting period under subsection (6) and the company delivers such particulars as are required to be delivered in accordance with paragraph (a), the inspector shall adjust any computation or assessment by reference to the difference between these amounts and any amount of corporation tax overpaid shall be repaid and any amount of corporation tax underpaid shall be paid.

( 8 ) ( a ) An amount of tax to be repaid under subsection (7) shall be repaid with interest in all respects as if it were a repayment of preliminary tax under section 12 (7) of the Finance Act, 1988 .

( b ) Interest shall not be charged under section 550 of the Income Tax Act, 1967 , on any amount of tax underpaid under the provisions of this subsection unless the amount is not paid within one month of the date on which the amount of the underpayment is notified to the chargeable person by the inspector and the amount of tax so unpaid shall not be treated as part of the tax payable for the chargeable period for the purposes of section 18 (3) (b) of the Finance Act, 1988 .

Restriction of certain losses and charges on income and consequential amendments.

46.—(1) Part II of the Corporation Tax Act, 1976 , is hereby amended, as respects accounting periods ending on or after the 1st day of April, 1992—

( a ) by the insertion after section 10 of the following section:

"Restriction of certain charges on income.

10A.— (1)( a ) In this section 'trade', income from the sale of goods', 'charges on income paid for the purpose of the sale of goods' and 'the sale of goods and merchandise' have the same meanings, respectively, as they have in subsection (1) (as amended by section 46 of the Finance Act, 1992 ) of section 116A (inserted by section 34 of the Finance Act, 1988 ) for the purposes of that section.

( b ) For the purposes of this section—

(i) where an accounting period begins before the 1st day of April, 1992, and ends on or after that date, it shall be divided into one part, beginning on the day on which the accounting period begins and ending on the 31st day of March, 1992, and another part, beginning on the 1st day of April, 1992, and ending on the day on which the accounting period ends, and both parts of the accounting period shall be treated as if they were separate accounting periods, and

(ii) where an accounting period begins before the 1st day of January, 2011, and ends on or after that date, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of December, 2010, and another part, beginning on the 1st day of January, 2011, and ending on the day the accounting period ends, and both parts shall be treated as if they were separate accounting periods.

(2) Notwithstanding section 10, so much of the total amount of charges on income paid for the purpose of the sale of goods by a company, in an accounting period falling within the period from the 1st day of April, 1992, to the 31st day of December, 2010, in the course of a trade or trades, as the case may be, shall not be allowed as a deduction against the total profits of the company for the period as exceeds the total amount, reduced by any loss relief under subsection (3) of section 16A (inserted by section 46 of the Finance Act, 1992 ), of the company's income from the sale of goods in the course of the trade or trades, as the case may be, in the period.

(3) ( a ) Notwithstanding the provisions of subsection (3) of section 41 of the Finance Act, 1980 , in determining the income of a company, referred to in the expression 'the income from the sale of those goods', for the purposes of subsection (2) of the said section 41, it shall be the sum determined by subsection (3) of the said section 41 for that period reduced by any charges on income paid for the purpose of the sale of goods which are allowed as a deduction against the total profits of the company for that period and paid on or after the 1st day of April, 1992.

( b ) Where for any accounting period of a company—

(i) the corporation tax referable to the income of the company from the sale of goods falls to be reduced under section 41 of the Finance Act, 1980 , and

(ii) charges on income paid, on or after the 1st day of April, 1992, for the purpose of the sale of goods have been allowed as a deduction against total profits,

then, notwithstanding section 46 of the said Act, the charges on income paid for the purpose of the sale of goods shall be deducted from the amount of the relevant deduction in relation to the period for charges on income in subsection (1) of section 46 of the said Act.",

( b ) in subsection (1) of section 16 by the insertion after "subsection (2)" of "or under section 16A (3) (inserted by section 46 of the Finance Act, 1992 )", and

( c ) by the insertion after section 16 of the following section:

"Restriction of certain losses.

(1) ( a ) In this section 'trade', 'income from the sale of goods', 'a loss from the sale of goods', and 'the sale of goods and merchandise' have the same meanings, respectively, as they have in subsection (1) (as amended by section 46 of the Finance Act, 1992 ) of section 116A (inserted by section 34 of the Finance Act, 1988 ).

( b ) Paragraph (b) of subsection (1) of section 10A (inserted by section 46 of the Finance Act, 1992 ) shall have effect for the purposes of this section as it has effect for the purposes of that section.

(2) Notwithstanding subsection (2) of section 16, for the purposes of that subsection the amount of a loss in a trade incurred by a company in an accounting period ending on or after the 1st day of April, 1992, shall be deemed to be reduced by the amount of a loss from the sale of goods, if any, incurred in the trade by the company in the accounting period.

(3) Where in an accounting period ending on or after the 1st day of April, 1992, a company carrying on a trade incurs a loss from the sale of goods, the company may make a claim requiring that the loss be set off for the purposes of corporation tax against its income from the sale of goods—

( a ) of that accounting period, and

( b ) if it was then carrying on the first-mentioned trade and if the claim so requires, of preceding accounting periods ending within the time specified in subsection (4),

and, subject to any relief for an earlier loss, to the extent that the trading income of any of those accounting periods consists of, or includes, income from the sale of goods, that trading income shall then be reduced by so much of the loss as cannot be relieved against trading income of a later accounting period.

(4) For the purposes of subsection (3), the time referred to in paragraph (b) of that subsection is the time immediately preceding the accounting period first-mentioned in subsection (3) equal in length to that accounting period:

Provided that the amount of the reduction which may be made under subsection (3) in the trading income of an accounting period falling partly before that time shall not exceed such part of the income from the sale of goods included in that trading income as bears to the said income from the sale of goods the same proportion as the part of the accounting period falling within the said time bears to the whole of that accounting period.

(5) ( a ) In subsection (3) of section 41 of the Finance Act, 1980 , and for the purposes of determining 'the amount' in the expression 'the amount of the company's income for the relevant accounting period from the sale in the course of the trade mentioned in that subsection of goods and merchandise', it shall be determined in accordance with subsection (4) of the said section 41 as if no relief for a loss in a trade had been claimed under this section.

( b ) Notwithstanding the provisions of subsection (3) of the said section 41, for the purposes of determining 'the income' in the expression 'the income from the sale of those goods in an accounting period for the purposes of subsection (2) of the said section 41, it shall be the sum determined by subsection (3) of the said section 41 for that period reduced by any relief for a loss in a trade allowed under this section against income of the trade mentioned in subsection (2) of the said section 41 in that period.

(6) This section shall not apply to so much of a company's loss from the sale of goods in the course of a trade in an accounting period as does not exceed the amount of the capital allowances under Part XIII, XV or XVI of the Income Tax Act, 1967 , section 11 of the Finance Act, 1967 , section 26 of the Finance Act, 1971 , or section 25 of the Finance Act, 1978 , which fall to be made for the accounting period in taxing the trade:

Provided that for the purposes of this subsection no account shall be taken of capital allowances other than capital allowances in respect of machinery or plant or an industrial building or structure—

( a ) which is provided for the purposes of a project approved within the period of two years ending on the 31st day of December, 1988, by the Industrial Development Authority,

( b ) the expenditure on the provision of which is incurred on or before the 31st day of March, 1995, and

( c ) more than half of the expenditure on the provision of which was incurred, or was the subject of a binding contract entered into, before the 1st day of April, 1992.

(7) This section shall not apply to so much of a company's loss from the sale of goods in the course of a trade in an accounting period as does not exceed the amount of the capital allowances under section 42 (2) of the Finance Act, 1986 , deducted by the company in computing the loss which it has incurred in that period in carrying on trading operations specified in a certificate given to it, and not subsequently revoked, by the Minister for Finance under section 39B (2) of the Finance Act, 1980 .",

and the said subsection (1) of section 16, as amended by paragraph (b), is set out in the Table to this section.

(2) Section 116A (inserted by section 34 of the Finance Act, 1988 ) of the Corporation Tax Act, 1976 , is hereby amended—

( a ) in paragraph (a) of subsection (1) by the insertion, in subparagraph (i) of the definition of "income from the sale of goods", after "section" of "or loss relief under subsection (3) of section 16A (as inserted by section 46 of the Finance Act, 1992 ) ",

( b ) in subparagraph (ii) of paragraph (b) of subsection (1) by the substitution of "the 1st day of January, 2011," for the 1st day of January, 2001," in both places where it occurs and of "the 31st day of December, 2010," for "the 31st day of December, 2000,", and

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

"( a ) Notwithstanding subsections (1) and (6) of section 116 and section 117, if, in any accounting period falling within the period from the 1st day of January, 1989, to the 31st day of December, 2010, the surrendering company incurs a loss from the sale of goods or an excess of charges on income paid for the purpose of the sale of goods, that loss or excess may be set off for the purposes of corporation tax against income from a trade of the claimant company for its corresponding accounting period to the extent of that income or, if it is less, to the extent of the income from the sale of goods in the course of the trade reduced by—

(i) any loss relief under subsection (3) of section 16A (inserted by section 46 of the Finance Act, 1992 ), and

(ii) charges on income paid for the purposes of the sale of goods within the meaning of section 10A (inserted by section 46 of the Finance Act, 1992 ),

but no other relief shall be given in respect of that loss or excess to a company other than the surrendering company.",

and the said subparagraph (i) of the definition of "income from the sale of goods" and the said subparagraph (ii) of paragraph (b) of subsection (1), as so amended, are set out in the Table to this section.

TABLE

(1) Where in any accounting period a company carrying on a trade incurs a loss in the trade, the company may make a claim requiring that the loss be set off for purposes of corporation tax against any trading income from the trade in succeeding accounting periods; and (so long as the company continues to carry on the trade) its trading income from the trade in any succeeding accounting period shall then be treated as reduced by the amount of the loss, or by so much of that amount as cannot, on that claim or on a claim (if made) under subsection (2) or under section 16A (3) (inserted by section 46 of the Finance Act, 1992 ), be relieved against income or profits of an earlier accounting period.

(i) no group relief under this section or loss relief under subsection (3) of section 16A (inserted by section 46 of the Finance Act, 1992 ) were allowed against income from the trade in that period,

(ii) where an accounting period begins before the 1st day of January, 2011, and ends on or after that date it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of December, 2010, and another part, beginning on the 1st day of January, 2011, and ending on the day the accounting period ends, and both parts shall be treated as if they were separate accounting periods.

Amendment of section 39 (meaning of "goods") of Finance Act, 1980 .

47.— Section 39 (as amended by the Finance Act, 1991 ) of the Finance Act, 1980 , is hereby amended, as respects accounting periods ending on or after the 1st day of April, 1992—

( a ) by the insertion, after the existing proviso to subsection (1), of the following proviso:

"Provided also that sections 108 to 113 of the Corporation Tax Act, 1976 , shall apply for the purposes of paragraph (b) of the first proviso to this subsection as they apply for the purposes of Part XI of that Act.",

( b ) by the substitution, in subsection (5) (inserted by the Finance Act, 1990 ), of "this section" for "the definition of 'goods' in subsection (1)",

( c ) as respects any relevant accounting period (within the meaning of section 38 of the Finance Act, 1980 ) or any part of such accounting period commencing on or after the 1st day of April, 1992, by the insertion, after subsection (1CC7), of the following subsections—

"(1CC8) ( a ) In this subsection—

'agricultural society' means a society—

(i) in relation to which both the following conditions are satisfied:

(I) the number of the society's members is not less than 50, and

(II) all or a majority of the society's members are persons who are mainly engaged in, and derive the principal part of their income from, husbandry,

(ii) to which a certificate under paragraph (b) (i) relates;

'fishery society' means a society—

(i) in relation to which both the following conditions are satisfied:

(I) the number of the society's members is not less than 20, and

(II) all or a majority of the society's members are persons who are mainly engaged in, and derive the principal part of their income from, fishing,

(ii) to which a certificate under paragraph (b) (ii) relates;

'qualifying goods' means goods purchased by a society from its members where such goods, in relation to the said members, are or would, but for subsection (3) (as amended by section 32 of the Finance Act, 1991 ) of section 39 of the Finance Act, 1980 , be goods for the purposes of this Chapter;

'qualifying society' means an agricultural society or a fishery society—

(i) which carries on a trade which consists wholly or mainly of the sale by wholesale of qualifying goods, and

(ii) all or a majority of the members of which are agricultural societies or fishery societies;

'selling by wholesale' means selling goods of any class to a person who carries on a business of selling goods of that class or who uses goods of that class for the purposes of a trade or undertaking carried on by him;

'society' means a society registered under the Industrial and Provident Societies Acts, 1893 to 1978.

( b ) (i) The Minister for Finance may, on the recommendation of the Minister for Agriculture, give a certificate entitling a society to be treated, for the purposes of this subsection, as an agricultural society notwithstanding that one or both of the conditions in paragraph (a) of the definition of 'agricultural society' is or are not complied with in relation to the society.

(ii) The Minister for Finance may, on the recommendation of the Minister for the Marine, give a certificate entitling a society to be treated, for the purposes of this subsection, as a fishery society notwithstanding that one or both of the conditions in paragraph (a) of the definition of 'fishery society' is or are not complied with in relation to the society.

(iii) A certificate given under—

(I) paragraph (a) or (b) of subsection (2) of section 70 of the Finance Act, 1963 ,

(II) paragraph (a) or (b) of subsection (2) of section 220 of the Income Tax Act, 1967 , or

(III) paragraph (a) or (b) of subsection (2) of section 18 of the Finance Act, 1978 ,

shall, unless it has been revoked, be deemed to be a certificate under this paragraph.

(iv) A certificate under subparagraph (i) or (ii) of this paragraph—

(I) shall have effect as from such date, whether before or after the date on which it is given, as may be stated therein, and

(II) shall be published in the Iris Oifigiúil, as soon as may be, after it is given.

(v) A certificate under this paragraph may be revoked by the Minister for Finance at any time and notice of any such revocation shall be published, as soon as may be, in the Iris Oifigiúil.

( c ) The following provisions shall apply, for the purposes of relief under this Chapter, in relation to a qualifying society:

(i) qualifying goods sold by wholesale in the course of its trade by the qualifying society shall be deemed to have been manufactured by the qualifying society, notwithstanding that the society which manufactured the said goods has claimed, or is entitled to claim, relief under this Chapter in respect of the sale by it of those goods,

(ii) any amount receivable from the sale of qualifying goods by the qualifying society shall be regarded as an amount receivable from the sale of goods, and

(iii) subsection (1D) shall have effect as respects the society in relation to a claim by it for relief from tax by virtue of this subsection as it has effect as respects a company in relation to a claim by it for relief from tax by virtue of subsection (1B) or (1C).

(1CC9) ( a ) In this subsection—

'agricultural society' and 'society' have, respectively, the meanings assigned to them in subsection (ICC8);

'milk product' means butter, whey-butter, cream, cheese, condensed milk, dried or powdered milk, dried or powdered skim-milk, dried or powdered whey, chocolate crumb, casein, butter-oil, lactose, and any other product which is made wholly or mainly from milk or from a by-product of milk and which is approved for the purposes of this section by the Minister for Finance after consultation with the Minister for Agriculture;

'qualifying company' means a company in respect of which the Minister for Agriculture, after consultation with the Minister for Finance, gives a certificate stating that he is satisfied that—

(i) (I) as respects a company which has not commenced to trade, that it intends to so carry on a qualifying trade, or

(II) as respects a company which has carried on a trade for a period which does not exceed a period of 3 years, that it carries on a qualifying trade and intends to so carry on the qualifying trade,

as to be entitled to a certificate under paragraph (ii) immediately after the expiration of a period of 3 years commencing on the date on which it commenced to carry on the said trade, or

(ii) in any other case, the company carries on a trade which, as respects the period commencing 3 years before and ending immediately before the date from which the certificate is to have effect, consisted wholly or mainly of a qualifying trade;

'qualifying trade' means a trade carried on by a company which consists wholly or mainly of the manufacture of milk products and where the trade consists wholly or mainly of the manufacture of milk products by the company and the distribution by it of the said milk products it shall be deemed to consist wholly or mainly of the manufacture of milk products;

'relevant product' means milk purchased by an agricultural society from its members which milk is sold by the agricultural society to a qualifying company.

( b ) A certificate given under this subsection shall have effect for a period commencing on such date, whether before or after the date on which it is given, as may be stated therein and ending on a day which is 2 years after that date.

( c ) The following provisions shall apply, for the purposes of relief under this Chapter, in relation to the sale by an agricultural society of relevant products:

(i) relevant products shall be deemed to have been manufactured by the agricultural society,

(ii) any amount receivable from the sale of relevant products by the agricultural society shall be regarded as an amount receivable from the sale of goods, and

(iii) subsection (1D) shall have effect as respects the agricultural society in relation to a claim by it for relief from tax by virtue of this subsection as it has effect as respects a company in relation to a claim by it for relief from tax by virtue of subsection (1B) or (1C).",

and

( d ) by the addition of the following subsection after subsection (5):

"(6) For the purposes of this Chapter, where in a relevant accounting period a company renders advertising services in the course of a trade carried on by it and which consists wholly or partly of the production of a newspaper, magazine or other similar product, then—

( a ) any amount receivable in payment for the rendering of such services shall not be regarded as an amount receivable from the sale of goods, and

( b ) for the purposes of section 41, the company's income from the trade for a relevant accounting period shall be regarded as not derived solely from the sale of goods and merchandise.".

Termination of relief in respect of certain transactions of agricultural and fishery societies.

48.—(1) ( a ) In this section—

"exempted transactions" has the meaning assigned to it by section 18 of the Finance Act, 1978 ;

"society" means a society registered under the Industrial and Provident Societies Acts, 1893 to 1978, which is an agricultural society or a fishery society within the meaning of section 18 of the Finance Act, 1978 .

( b ) For the purposes of this section—

(i) where an accounting period of a society begins before and ends after the 1st day of April, 1992, that period shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of March, 1992, and another part beginning on the 1st day of April, 1992, and ending on the day on which the accounting period ends, and both parts of the accounting period shall be treated as if they were separate accounting periods, and

(ii) the amount of trading income attributable to any transactions in an accounting period shall be taken to be the amount which bears to the full amount of the trading income of the period the same proportion as the aggregate of the amounts receivable by the society, by virtue of those transactions, from the sale of goods and the provision of services bears to the aggregate of all amounts received by the society, by virtue of transactions in the period, from the sale of goods and the provision of services.

(2) In the case of a trade carried on by a society—

( a ) no transaction on or after the 1st day of April, 1992, shall be regarded as an exempted transaction for the purposes of section 18 of the Finance Act, 1978 , and

( b ) sections 16 (1), 182 and 184 of the Corporation Tax Act, 1976 , shall apply to a society for accounting periods ending on or after the 1st day of April, 1992, as if—

(i) section 18, other than subsection (9), of the Finance Act, 1978 , had not been enacted,

(ii) the society had made all such claims under the said sections 16 (1), 182 and 184 as it was entitled to make, and

(iii) such set-off of, or relief for, losses had been duly made in accordance with those claims:

Provided that—

(I) such part of the trading income of a society as is not income from the sale of goods (within the meaning of section 41 of the Finance Act, 1980 ) shall be reduced by so much of the said part as is attributable to transactions which would, but for this subsection, be exempted transactions as does not exceed—

( A ) as respects accounting periods falling wholly or partly in the period commencing on the 1st day of April, 1992, and ending on the 31st day of December, 1992, two-thirds of the trading income so attributable, and

( B ) as respects accounting periods falling wholly or partly in the year 1993, one-third of the trading income so attributable,

and

(II) paragraph (I) of this proviso shall not apply for the purposes of Chapter VI of Part 1 of the Finance Act, 1980 .

(3) For the purposes of subsection (2), where an accounting period falls partly in a year or period, the part of the accounting period falling into the year or period shall be regarded as a separate accounting period.

Recovery of tax credits from companies.

49.—(1) Section 25 of the Corporation Tax Act, 1976 , is hereby amended, as respects any accounting period ending on or after the 1st day of April, 1992, by the insertion, after subsection (5), of the following subsection:

"(5A) Where a company makes a claim under subsection (5) in respect of an accounting period, any income tax payable by virtue of that subsection shall, for the purposes of the charge, assessment, collection and recovery from the company of that tax and of any interest or penalties thereon, be treated and described as corporation tax payable by that company for that accounting period, notwithstanding that for all other purposes of the Tax Acts it is income tax.".

(2) Section 26 of the Corporation Tax Act, 1976 , is hereby amended, as respects any accounting period ending on or after the 1st day of April, 1992, by the insertion, after subsection (4), of the following subsection:

"(4A) Where a company makes a claim under subsection (4) in respect of an accounting period, any income tax payable by virtue of that subsection shall, for the purposes of the charge, assessment, collection and recovery from the company of that tax and of any interest or penalties thereon, be treated and described as corporation tax payable by that company for that accounting period, notwithstanding that for all other purposes of the Tax Acts it is income tax.".

Group payments.

50.—(1) Section 105 of the Corporation Tax Act, 1976 , is hereby amended—

( a ) by the substitution of the following subsections for subsections (1) and (2):

"(1) Where a company receives from another company (both being companies resident in the State) any payments to which this section applies, and either—

( a ) the company making the payment is—

(i) 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

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

( b ) the company receiving the payment is a 51 per cent. subsidiary of the company making the payment, then, subject to the following provisions of this section, those payments shall be made without deduction of income tax and neither section 434 (which relates to payments not payable out of taxed profits) of the Income Tax Act, 1967 , nor section 31 (which relates to interest payments by companies) of the Finance Act, 1974 , shall apply thereto.

(2) The payments to which this section applies are any payments which, for the purposes of corporation tax, are charges on income of the company making them or would be so if they were not deductible in computing profits or any description of profits or if section 10 (6) (which relates to restriction of allowance of charges on income) did not apply to them:

Provided that this section shall not apply to payments received by a company on any investments, if a profit on the sale of those investments would be treated as a trading receipt of that company.",

and

( b ) by the deletion in subsection (3) of "an election under".

(2) Section 106 of the Corporation Tax Act, 1976 , is hereby repealed.

(3) This section shall apply and have effect as on and from the date of the passing of this Act.

Amendment of section 44 (group dividends) of Finance Act, 1983 .

51.—(1) Section 44 of the Finance Act, 1983 , is hereby amended—

( a ) in subsection 1—

(i) by the deletion of ", 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", and

(ii) by the insertion of the following proviso to that subsection:

"Provided that the company paying the dividends may elect, by notice in writing to the inspector, that the provisions of this section shall not apply or have effect in relation to any amount of dividends specified in the notice.",

( b ) in subsection (3), by the deletion of "an election under", and

( c ) by the substitution of the following subsection for subsection (7):

"(7) An election under the proviso to subsection (1) shall not be valid unless—

( a ) it is made before the due date for the payment, by the company paying the dividends, of advance corporation tax for the accounting period in which the dividends are paid, and

( b ) the advance corporation tax in respect of those dividends has been paid.".

(2) This section shall apply and have effect as on and from the date of the passing of this Act.

Amendment of section 39A (relief in relation to income from certain trading operations carried in Shannon Airport) of Finance Act, 1980 .

52.—Section 39A (as amended by section 33 of the Finance Act, 1991 ) of the Finance Act, 1980 , is hereby amended—

( a ) in subsection (2), by the substitution of "subsection (4), (4A) or (4B)" for "subsection (4) or (4A)", and

( b ) by the insertion after subsection (4A) (inserted by the Finance Act, 1986 ) of the following subsection:

"(4B) Where the Minister and a company, in relation to which a certificate under subsection (2) has been given, agree to the revocation of that certificate and its replacement with another certificate to be given to the company under subsection (2), the Minister may, by notice in writing served by registered post on the company, revoke the first-mentioned certificate with effect from such date as may be specified in the notice:

Provided that the provisions of this subsection shall not affect the operation of subsection (4) or (4A).",

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

TABLE

(2) Subject to subsections (5) and (6), the Minister may give a certificate certifying that such trading operations of a qualified company as are specified in the certificate are, with effect from a date to be specified in the certificate, relevant trading operations for the purpose of this section, and any certificate so given shall, unless it is revoked under subsection (4), (4A) or (4B), remain in force until the 31st day of December, 2005.

Amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980 .

53.—Section 39B (as amended by section 34 of the Finance Act, 1991 ) of the Finance Act, 1980 , is hereby amended—

( a ) in subsection (2), by the substitution of "subsection (4), (5) or (5A)" for "subsection (4) or (5)", and

( b ) by the insertion after subsection (5) of the following subsection:

"(5A) Where the Minister and a company, in relation to which a certificate under subsection (2) has been given, agree to the revocation of that certificate and its replacement with another certificate to be given to the company under subsection (2), the Minister may, by notice in writing served by registered post on the company, revoke the first-mentioned certificate with effect from such date as may be specified in the notice:

Provided that the provisions of this subsection shall not affect the operation of subsection (4) or (5).",

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

TABLE

(2) Subject to subsections (6) and (7), the Minister may give a certificate certifying that such trading operations of a company as are specified in the certificate are, with effect from a date to be specified in the certificate, relevant trading operations for the purposes of this section, and any certificate so given shall, unless it is revoked under subsection (4), (5) or (5A), remain in force until the 31st day of December, 2005.

Amendment of section 41 (basis of relief from corporation tax) of Finance Act, 198.

54.— Section 41 (as amended by section 52 of the Finance Act, 1990 ) of the Finance Act, 1980 , is hereby amended by the substitution of the following subsection for subsection (1):

"(1) For the purposes of this section 'relevant corporation tax' means the corporation tax which, apart from—

( a ) this section,

( b ) sections 25 and 26 (as amended by section 49 of the Finance Act, 1992 ), and sections 58, 101, 151, 162, 182 and 184, of the Corporation Tax Act, 1976 , and

( c ) section 51 of the Finance Act, 1990 ,

would be chargeable for the relevant accounting period exclusive of the corporation tax chargeable on the part of the company's profits attributable to chargeable gains for that period; and that part shall be taken to be the amount brought into the company's profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description.".

Late submission of returns: restriction of certain claims to relief.

55.—(1) Notwithstanding any other provision of the Tax Acts, where, in relation to a chargeable period, a company fails to deliver a return of income for the chargeable period on or before the specified return date for the chargeable period the following provisions shall apply and have effect, that is to say:

( a ) any claim in respect of the chargeable period under section 14 (6), 16 (2) or 19 (2) of the Corporation Tax Act, 1976 , shall be restricted so that the amount by which the company's profits of that or any other chargeable period fall to be reduced by virtue of the claim is 50 per cent. of the amount it would have been if this section had not been enacted,

( b ) the total amount of group relief which the company may claim in respect of the chargeable period shall not exceed 50 per cent. of the company's profits of the chargeable period as reduced by any other relief from tax other than group relief,

( c ) the total amount of the loss referred to in subsection (1) of section 116 of the Corporation Tax Act, 1976 , for the chargeable period and the total amount of the excess referred to in subsection (2), (3) or (6) of the said section 116 for that period shall each be treated for the purposes of Part XI of the said Act as reduced by 50 per cent.,

( d ) any claim in respect of the chargeable period under section 39 (2) of the Finance Act, 1983 , shall be restricted so that the amount of advance corporation tax which is treated as if it were advance corporation tax paid in respect of distributions made by the company in any preceding chargeable period is 50 per cent. of the amount which would have been so treated if this section had not been enacted, and

( e ) the company may not surrender under section 45 (1) of the Finance Act, 1983 , more than 50 per cent. of the excess of the total amount of advance corporation tax it has paid (and which has not been repaid) in respect of a dividend or dividends paid by it in the chargeable period over the amount of such advance corporation tax which, under section 39 (1) of the said Act, is set against its liability to corporation tax for the chargeable period.

( 2 ) ( a ) In this section—

"chargeable period" means an accounting period of a company;

"group relief" has the meaning assigned to it by section 107 of the Corporation Tax Act, 1976 ;

"return of income" means a return which a company is required to deliver under the provisions of section 10 of the Finance Act, 1988 ;

"specified return date for the chargeable period" has the meaning assigned to it by section 9 of the Finance Act, 1988 .

( b ) Subparagraphs (i) and (ii), and subparagraph (iii) (as amended by section 25 of the Finance Act, 1990 ), of paragraph (b) of subsection (1) of section 48 of the Finance Act, 1986 , shall apply for the purposes of this section as they apply for the purposes of that section.

(3) This section shall apply and have effect as respects chargeable periods ending on or after the 1st day of April, 1992.

Relief for gifts to The Enterprise Trust Ltd.

56.—(1) In this section "the company" means the company incorporated on the 30th day of October, 1991, as The Enterprise Trust Limited.

(2) This section applies to a gift of money which—

( a ) on or after the 1st day of April, 1992, and before the 31st day of March, 1994, is made to the company and accepted by it,

( b ) is to be applied by the company solely for the objects set out in its memorandum of association,

( c ) would not, apart from subsection (3), be deductible in computing for the purposes of corporation tax the profits or gains of a trade or profession, and

( d ) is not income to which the provisions of section 439 of the Income Tax Act, 1967 , apply.

(3) Subject to subsection (2), where a company makes a gift to which this section applies and claims relief from tax by reference thereto, the net amount thereof shall, for the purposes of corporation tax, be treated as—

( a ) a deductible trading expense of a trade carried on by the company, or

( b ) an expense of management deductible in computing the total profits of the company, incurred by it in the accounting period in which the gift is made:

Provided that in determining the net amount of the gift, the amount or value of any consideration received by the said company as a result of making the gift, whether received directly or indirectly from the company or any other person, shall be deducted from the amount of the gift.

(4) A claim under this section shall be made with the return required to be delivered under section 10 of the Finance Act, 1988 , for the accounting period in which the payment is made.

Amendment of section 39 (exemption of certain income of Nítrigin Éireann Teoranta) of Finance Act, 1988 .

57.— Section 39 of the Finance Act, 1988 , is hereby amended by the substitution in paragraph (a) of "31st day of December, 1999," for "31st day of December, 1992,".

Amendment of section 35 (relief for investment in films) of Finance Act, 1987 .

58.— Section 35 of the Finance Act, 1987 (as amended by section 28 of the Finance Act, 1989 ), is hereby amended in subsection (1), by the substitution, in the definition of "qualifying period", of "the 31st day of March, 1995" for "the fifth anniversary of that date".

CHAPTER IV Capital Gains Tax

Reduction in exemption for individuals.

59.—As respects the year 1992-93 and subsequent years of assessment—

( a ) subsection (4) of section 13, and subsections (1) and (2) of section 16, of the Capital Gains Tax Act, 1975 , and

( b ) paragraph 8 of Schedule 1 to the Capital Gains Tax (Amendment) Act, 1978 ,

are hereby amended by the substitution of "£1,000" for "£2,000" (inserted by the Finance Act, 1982 ) in each place where it occurs in those provisions, and the said provisions, as so amended, are set out in the Table to this section.

TABLE

(4) Where, apart from subsection (1), the amount on which an individual is chargeable to capital gains tax under section 5 (1) for a year of assessment (hereafter in this subsection referred to as "the first-mentioned amount") is less than £1,000 and the spouse of the individual (being, at any time during that year of assessment, a married woman living with her husband, or that husband) is, apart from subsection (1), chargeable to capital gains tax on any amount for that year, section 16 (1) shall have effect in relation to the spouse as if the sum of £1,000 mentioned therein were increased by an amount equal to the difference between the first-mentioned amount and £1,000.

(1) An individual shall not be chargeable to capital gains tax for a year of assessment if the amount on which he is chargeable to capital gains tax under section 5 (1) for that year does not exceed £1,000.

(2) If the amount on which an individual is chargeable to capital gains tax under section 5 (1) for a year of assessment exceeds £1,000, only the excess of that amount over £1,000 shall be charged to capital gains tax for that year.

8. For the purposes of subsection (2) of section 16 (gains of £1,000 and under) of the Principal Act, where, on the assumption that that subsection did not apply, an individual would be chargeable under the Capital Gains Tax Acts at more than one rate of tax for a year of assessment, the relief to be given under that subsection in respect of the first £1,000 of chargeable gains shall be given—

( a ) if he would be so chargeable at two different rates, in respect of the chargeable gains which would be so chargeable at the higher of those rates and, so far as relief cannot be so given, in respect of the chargeable gains which would be so chargeable at the lower of those rates, and

( b ) if he would be so chargeable at three or more rates, in respect of the chargeable gains which would be so chargeable at the highest of those rates and, so far as relief cannot be so given, in respect of the chargeable gains which would be so chargeable at the next highest of those rates, and so on.

Alteration of rates of capital gains tax.

60.—(1) Section 3 of the Capital Gains Tax Act, 1975 , is hereby amended, as respects chargeable gains accruing on any disposal made on or after the 6th day of April, 1992—

( a ) by the substitution of the following subsection for subsection (3) (as amended by the Finance Act, 1990 ):

"(3) Except as otherwise provided for by the Capital Gains Tax Acts, the rate of capital gains tax in respect of chargeable gains accruing to a person on the disposal of an asset shall be 40 per cent., and any reference in those Acts to the rate specified in this section shall be construed accordingly.",

and

( b ) by the deletion of subsection (4) (inserted by the Finance Act, 1982 ).

(2) Section 36 (as amended by the Finance Act, 1990 ) of the Finance Act, 1982 , is hereby amended by the deletion of subsections (2), (3) and (3A).

Restriction of Schedule 2 (companies and shareholders) to Capital Gains Tax Act, 1975 .

61.—In Schedule 2 to the Capital Gains Tax Act, 1975 , paragraph 6 shall not apply to the transfer by a person, on or after the 24th day of April, 1992, of a business to a company, wholly or partly in exchange for shares issued by the company, unless it is shown that the transfer is effected for bona fide commercial reasons and does not form part of any arrangement or scheme of which the main purpose, or one of the main purposes, is avoidance of liability to tax.

Amendment of section 9 (consideration) of Capital Gains Tax Act, 1975 .

62.—(1) Section 9 of the Capital Gains Tax Act, 1975 , is hereby amended by the addition of the following subsection after subsection (4) (inserted by the Finance Act, 1982 ):

"(5) Subsection (1) shall not apply to the acquisition of an asset where—

( a ) there is no corresponding disposal of the asset, and

( b ) (i) there is no consideration in money or money's worth for the asset, or

(ii) the consideration for the asset is of an amount or value which is lower than the market value of the asset.".

(2) This section shall apply and have effect in relation to disposals made on or after the 7th day of May, 1992.

Amendment of section 47 (options) of Capital Gains Tax Act, 1975 .

63.— Section 47 of the Capital Gains Tax Act, 1975 , is hereby amended, as on and from the 7th day of May, 1992—

( a ) in subsection (3), by the deletion of "or abandonment",

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

"(3A) ( a ) The abandonment of an option by the person for the time being entitled to exercise it shall constitute the disposal of an asset (namely, the option) by that person.

( b ) Subject to subsection (5) and paragraph (a) of subsection (6), the abandonment of an option by the person for the time being entitled to exercise it shall not give rise to an allowable loss.",

( c ) in subsection (5), by the substitution of the following paragraph for paragraph (a):

"( a ) if the option is abandoned, paragraph (b) of subsection (3A) shall not apply, and",

( d ) in subsection (6)—

(i) by the substitution of the following paragraph for paragraph (a):

"( a ) Where—

(i) a quoted option to subscribe for shares in a company, or

(ii) a traded option,

is disposed of or abandoned, then—

(I) if the option is abandoned, paragraph (b) of subsection (3A) shall not apply, and

(II) paragraph 9 of Schedule 1 (restriction of allowable expenditure for wasting asset) and subsection (4) shall not apply.",

and

(ii) by the substitution in paragraph (b) of "Where a quoted option to subscribe for shares in a company" for "Where an option mentioned in paragraph (a)",

and

( e ) by the addition after subsection (10) of the following subsection:

"(11) In this section—

'quoted option' means an option which, at the time of abandonment or other disposal, is quoted, and, in the same manner as shares, dealt in on a stock exchange in the State or elsewhere;

'traded option' means an option which, at the time of abandonment or other disposal, is quoted on a stock exchange or a futures exchange in the State or elsewhere. ",

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

TABLE

( b ) Where a quoted option to subscribe for shares in a company is dealt in within three months after the taking effect, with respect to the company granting the option, of any reorganisation, reduction, conversion or amalgamation to which paragraphs 2, 3, 4 or 5 of Schedule 2 applies (or within such longer period as the Revenue Commissioners may by notice in writing allow), the option shall, for the purposes of the said paragraphs 2, 3, 4 or 5, be regarded as the shares which could be acquired by exercising the option and section 49 (3) shall apply for determining its market value.

CHAPTER V Implementation of Council Directive No. 90/434/EEC and other related matters

Interpretation (Chapter V).

64.—In this Chapter—

"bilateral agreement" means arrangements having the force of law by virtue of section 361 of the Income Tax Act, 1967 ;

"company" means a company from a Member State;

"company from a Member State" has the meaning assigned to it by Article 3 of the Directive;

"the Directive" means Council Directive No. 90/434/EEC of 23 July 1990* ¹ , on the common system of taxation applicable to mergers, divisions, transfers of assets and exchanges of shares concerning companies of different Member States;

"Member State" means a Member State of the European Economic Community;

"receiving company" means the company to which the whole or part of a trade is transferred in the course of a transfer;

"securities" means shares and debentures;

"shares" includes stock;

"transfer" means the transfer by a company of the whole or part of its trade in the circumstances set out in section 65 (1) or section 69 (1), as the case may be;

"transferring company" means the company by which the whole or part of a trade is transferred in the course of a transfer.

Transfer of assets generally.

65.—(1) ( a ) This section applies where on or after the 1st day of January, 1992, a company transfers the whole of a trade carried on by it in the State to another company and the consideration for the transfer consists solely of the issue to the transferring company of securities (in this section referred to as the "new assets") in the receiving company.

( b ) A company which transfers part of a trade to another company shall be treated for the purposes of this section as having carried on that part of its trade as a separate trade.

( 2 ) ( a ) The transfer shall not be treated as giving rise to any allowance or charge provided for by section 14 of the Corporation Tax Act, 1976 .

( b ) There shall be made to or on the receiving company in accordance with section 14 of the Corporation Tax Act, 1976 , all such allowances and charges as would, if the transferring company had continued to carry on the trade and had continued to use the transferred assets for the purposes of the trade, have fallen to be made to or on it in respect of any assets transferred in the course of the transfer, and the amount of any such allowance or charge shall be computed as if the receiving company had been carrying on the trade since the transferring company began to do so and as if everything done to or by the transferring company had been done to or by the receiving company.

( c ) This subsection shall not apply as respects assets transferred in the course of a transfer if in consequence of the transfer, or a transaction of which the transfer is a part, the Corporation Tax Act, 1976 , is to have effect subject to subsections (2) to (5) of section 20 of that Act.

(3) For the purposes of the Capital Gains Tax Acts and, in so far as it applies to capital gains tax, the Corporation Tax Act, 1976 —

( a ) the transfer shall not be treated as involving any disposal by the transferring company, and

( b ) the receiving company shall be treated as if the assets transferred to it in the course of the transfer were acquired by it at the same time and for the same consideration at which they were acquired by the transferring company and as if all things done by the transferring company relating to the assets transferred in the course of the transfer had been done by it.

(4) Where, at any time within a period of 6 years commencing on the day on which the assets were transferred in the course of the transfer, the transferring company disposes of the new assets then, for the purposes of the Capital Gains Tax Acts and, in so far as it relates to capital gains tax, the Corporation Tax Acts, in computing any chargeable gain on the disposal of any new assets—

( a ) the aggregate of the chargeable gains less allowable losses which, but for paragraph (a) of subsection (3), would have been chargeable on the transferring company shall be apportioned between the new assets as a whole, and

( b ) the sums allowable as a deduction under paragraph 3 (1) (a) of Schedule 1 to the Capital Gains Tax Act, 1975 , shall be reduced by the amount apportioned to the new asset under paragraph (a),

and if the securities which comprise the new assets are not all of the same type, the apportionment between the securities under paragraph (a) shall be in accordance with their market value at the time they were acquired by the transferring company.

(5) Subsections (2), (3) and (4) shall not apply if—

( a ) immediately after the time of the transfer—

(i) the assets transferred in the course of the transfer are not used for the purposes of a trade carried on by the receiving company in the State,

(ii) the receiving company would not be chargeable to corporation tax or capital gains tax in respect of any chargeable gains accruing to it on a disposal, if it were to make such a disposal, of any assets (other than cash) acquired in the course of the transfer, or

(iii) any of the assets are assets in respect of which, by virtue of being of a description specified in a bilateral agreement, the receiving company falls to be regarded as not liable in the State to corporation tax or capital gains tax on gains accruing to it on a disposal,

( b ) the transferring company and the receiving company jointly so elect by notice in writing to the inspector, and such notice shall be made by the time by which a return falls to be made by the transferring company under section 10 of the Finance Act, 1988 , for the accounting period in which the transfer takes place.

Transfer of an asset by a company to its parent company.

66.—(1) Where a company disposes of an asset used for the purposes of a trade carried on by it in the State to a company which holds all of the securities representing its capital and the companies would not, but for this section, fall to be treated in accordance with section 130 of the Corporation Tax Act, 1976 , in respect of the said asset, then if—

( a ) immediately after the disposal the company acquiring the asset commences to use the asset for the purposes of a trade carried on by it in the State, and

( b ) the disposal is not, or does not form part of, a transfer to which section 65 applies,

sections 130, 131 and 132 of the said Act of 1976 shall have effect as if the companies were resident in the State.

(2) Subsection (5) of section 65 shall apply with any necessary adaptation for the purposes of this section as if references in that subsection to subsections (2), (3) and (4) of the said section 65 were references to subsection (1) of this section.

Company reconstruction or amalgamation: transfer of development land.

67.—Where, on or after the 24th day of April, 1992, a company, for the purposes of or in connection with a scheme of reconstruction or amalgamation (within the meaning of subsection (3) of section 127 of the Corporation Tax Act, 1976 ), disposes of an asset which consists of development land (within the meaning of section 36 of the Finance Act, 1982 ) to another company and—

( a ) the disposal is not made in the course of a transfer to which section 65 applies, and

( b ) the company disposing of the asset and the company acquiring the asset would, if the definition of chargeable gains in subsection (1C of section 13 (as amended by section 31 of the Finance Act, 1982 ) of the Corporation Tax Act, 1976 , and subsection (4) of section 36 of the Finance Act, 1982 , were deleted, be treated in accordance with subsection (1) of section 127 of the Corporation Tax Act, 1976 , in respect of that asset,

then, the companies shall be treated as if the said asset was acquired by the one company from the other company for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the company making the disposal and, for the purposes of section 3 of the Capital Gains Tax (Amendment) Act, 1978 , the acquiring company shall be treated as if the acquisition of the asset by the other company had been the acquiring company's acquisition of it.

Amendment of section 36 (as amended by section 60) (chargeable gains on disposals of development land) of Finance Act, 1982 .

68.— Section 36 (as amended by section 60) of the Finance Act, 1982 , is hereby amended, as respects disposals on or after the 24th day of April, 1992—

( a ) in subsection (5), by the substitution of "sections 130, 134, 135, 136, 137, 138 and 139 for "sections 134, 137, 138 and 139 and the said subsection (5), as so amended, is set out in the Table to this section, and

( b ) by the deletion of subsection (7).

TABLE

(5) Sections 130 , 134 , 135 , 136 , 137 , 138 and 139 of the Corporation Tax Act, 1976 , shall apply, with any necessary modifications, in relation to capital gains tax to which a company is chargeable on chargeable gains accruing to it on a relevant disposal as they apply in relation to corporation tax on chargeable gains and references in those sections to corporation tax shall be construed as including references to capital gains tax.

Credit for tax.

69.—(1) Where, on or after the 1st day of January, 1992—

( a ) a company which is resident in the State transfers the whole or part of a trade which, immediately before the time of the transfer, it carried on in a Member State, other than the State, through a branch or agency to a company which is not resident in the State,

( b ) the transfer includes the whole of the assets of the transferring company used for the purposes of the trade or the part of the trade or the whole of those assets other than cash, and

( c ) the consideration for the transfer consists wholly or partly of the issue to the transferring company of securities in the receiving company,

then, tax specified in a relevant certificate given by the tax authorities of the Member State in which the trade was so carried on shall be treated, for the purposes of Part XXII of the Income Tax Act, 1967 , as tax—

(i) payable under the law of that Member State, and

(ii) in respect of which credit may be allowed under a bilateral agreement.

(2) For the purposes of this section—

"law of the Member State which has the effect of deferring a charge to tax on a gain" means any law of the Member State concerned which provides—

( a ) that the gain accruing to the transferring company on the disposal of the assets in the course of the transfer is to be treated as not accruing until the disposal of the assets by the receiving company, or

( b ) that the receiving company is to be treated as having acquired the assets for a consideration of such amount as would secure that, for the purposes of charging the gain on the disposal to tax in that Member State, neither a gain nor a loss would accrue to the transferring company on the transfer and the receiving company is to be treated as if the acquisition of the assets by the transferring company had been its acquisition of them, or

( c ) such other deferral of a charge to tax as corresponds to paragraph (a) or (b);

"relevant certificate given by the tax authorities of a Member State" means a certificate so given and which states—

( a ) whether gains accruing to the transferring company on the transfer would have been chargeable to tax under the law of the Member State but for—

(i) the Directive, or

(ii) any provision of the law of the Member State which has the effect of deferring a charge to tax on a gain in the case of such a transfer,

( b ) if the said gains accruing would have been so chargeable, the amount of tax which would have been payable under the said law if, so far as is permitted under that law, any losses arising on the transfer are set against any gains so arising and any deductions and reliefs available to the transferring company under the said law other than the provisions mentioned in paragraph (a), had been claimed.

Avoidance of tax.

70.—Notwithstanding any other provision of the Tax Acts or the Capital Gains Tax Acts, sections 65, 66, 67, 68 and 69 shall not have effect as respects a transfer or disposal (as the case may be) unless it is shown that the transfer or disposal is effected for bona fide commercial reasons and does not form part of any arrangement or scheme of which the main purpose, or one of the main purposes, is avoidance of liability to income tax, corporation tax or capital gains tax.

Returns.

71.—(1) Where section 65, 66, 67, 68 or 69 has effect in relation to a transfer or disposal (as the case may be), the transferring company shall make a return, in such form as the Revenue Commissioners may require, of the transfer or disposal to the appropriate inspector.

(2) Where corporation tax or capital gains tax payable by a company falls to be reduced by virtue of section 69, a return under this section shall include a relevant certificate given by the tax authorities of the Member State in which the trade was carried on immediately before the time of the transfer.

(3) A company shall make a return under this section within 9 months from the end of the accounting period in which the transfer occurs.

(4) In this section "appropriate inspector" shall have the meaning assigned to it in section 9 of the Finance Act, 1988 .

Other transactions.

72.—(1) The Revenue Commissioners may, on an application being made to them in writing in respect of a transaction—

( a ) of a type specified in the Directive, and

( b ) to which this Chapter does not apply, give such relief as appears to them to be just and reasonable for the purposes of giving effect to the provisions of the Directive.

(2) An application under this section shall be made in such form as the Revenue Commissioners may require.

Amendment of section 132 (disposal or acquisition outside a group) of Corporation Tax Act, 1976 .

73.—Section 132 (as amended by section 14 of the Capital Gains Tax (Amendment) Act, 1978 ) of the Corporation Tax Act, 1976 , is hereby amended by the insertion of the following proviso after subsection 2—

"Provided that where at any time after the asset was acquired or provided by the group so taken as a single person and before the 24th day of April, 1992, there was an acquisition (hereafter in this proviso referred to as 'the later acquisition') of the said asset by a member of the group from another member of the group as a result of a relevant disposal (within the meaning of subsection (1) of section 36 of the Finance Act, 1982 ), this subsection shall have effect as if the reference to the acquisition or provision of the asset by the group were a reference to the later acquisition or the last such acquisition where there was more than one.".

Apportionment of amounts.

74.—Where, for the purposes of this Chapter, any sum falls to be apportioned and, at the time of the apportionment, it appears that it is material as respects the liability to tax (for whatever period) of two or more companies, then any question which arises as to the manner in which the sum is to be apportioned shall be determined, for the purposes of the tax of all those companies, by the Appeal Commissioners, who shall determine the question in like manner as if it were an appeal against an assessment, and the provisions of the Income Tax Acts relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications:

Provided that all the said companies shall be entitled to appear and be heard by the Appeal Commissioners or to make representations to them in writing.

CHAPTER VI Petroleum Taxation

Interpretation (Chapter VI).

75.—(1) In this Chapter—

"abandonment activities", in relation to a relevant field or any part of it, means those activities of a person, whether carried on by him or on his behalf, which comply with the requirements of a petroleum lease held by him, or, if the person is a company, held by the company or a company associated with it, in respect of—

( a ) the closing down, decommissioning or abandonment of the relevant field or the part of it, as the case may be, or

( b ) the dismantlement or removal of the whole or a part of any structure, plant or machinery which is not situated on dry land and which has been brought into use for the purposes of transporting as far as dry land petroleum won from the relevant field or from the part of it, as the case may be;

"abandonment expenditure" in relation to a relevant field or any part of it, means expenditure incurred on abandonment activities in relation to the field or the part of it, as the case may be;

"chargeable period" means an accounting period of a company or a year of assessment;

"designated area" means an area standing designated for the time being by order under section 2 of the Continental Shelf Act, 1968 ;

"development expenditure" means capital expenditure incurred in connection with a relevant field on the provision for use in carrying on petroleum extraction activities of—

( a ) machinery or plant,

( b ) any works, buildings or structures, or

( c ) any other assets which are of such a nature that, when the relevant field ceases to be worked, they are likely to be so diminished in value that their value will be little or nothing,

but does not include—

(i) expenditure on any vehicle suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles,

(ii) expenditure on any building or structure for use as a dwelling-house, shop or office or for any purpose ancillary to the purposes of a dwelling-house, shop or office,

(iii) (I) expenditure incurred on petroleum exploration activities, and

(II) payments made to the Minister for Energy on the application for, or in consideration for the granting of, a licence (other than a petroleum lease) or other payments made to him in respect of the holding of the licence,

(iv) expenditure on the acquisition of the site of a relevant field, or of the site of any works, buildings or structures or of rights in or over any such site,

(v) expenditure on the acquisition of, or of rights in or over, deposits of petroleum,

(vi) expenditure on—

(I) machinery or plant, or

(II) works, buildings or structures, provided for the processing or storing of petroleum won in the course of carrying on petroleum extraction activities, other than the initial treatment and storage of such petroleum, or

(vii) any interest payment, and "assets representing development expenditure" shall be construed accordingly and shall include any results obtained from any search or enquiry upon which the expenditure was incurred;

"dry land" means land not permanently covered by water;

"exploration expenditure" means—

( a ) capital expenditure incurred on petroleum exploration activities, and

( b ) payments made to the Minister for Energy on the application for, or in consideration for the granting of, a licence (other than a petroleum lease) or other payments made to him in respect of the holding of the licence,

but does not include any interest payment and "assets representing exploration expenditure" shall be construed accordingly and shall include any results obtained from any search, exploration or enquiry upon which the expenditure was incurred;

"initial treatment and storage", in relation to petroleum won from a relevant field, means the doing of any of the following things—

( a ) subjecting petroleum so won to any process of which the sole purpose is to enable the petroleum to be safely stored, safely loaded into a tanker or safely accepted for refining,

( b ) separating petroleum so won and consisting of gas from other petroleum so won,

( c ) separating petroleum so won and consisting of gas of a kind that is transported and sold in normal commercial practice from other petroleum so won and consisting of gas,

( d ) liquefying petroleum so won and consisting of gas of such a kind as is mentioned in paragraph (c) for the purpose of transporting it,

( e ) subjecting petroleum so won to any process so as to secure that petroleum disposed of without having been refined has the quality that is normal for petroleum so disposed of from the relevant field, or

( f ) storing petroleum so won prior to its disposal or prior to its appropriation to refining or to any use except use in—

(i) winning petroleum from a relevant field, including searching in that field for, and winning access to, such petroleum, or

(ii) transporting as far as dry land petroleum that is won from a place not on dry land,

but does not include any activity carried on as part of, or in association with, the refining of petroleum;

"licence" means—

( a ) an exploration licence,

( b ) a petroleum prospecting licence,

( c ) a petroleum lease, or

( d ) a reserved area licence,

granted in respect of an area in the State or a designated area under the Petroleum and Other Minerals Development Act, 1960 , and which was granted subject to—

(i) the licensing terms set out in the Notice entitled "Ireland Exclusive Offshore Licensing Terms" presented to each House of the Oireachtas on the 29th day of April, 1975, or

(ii) licensing terms presented to each House of the Oireachtas on a day or days which fall after the 29th day of April, 1975, and which may be before, or on or after, the passing of this Act, or

(iii) licensing terms, to which paragraph (i) or (ii) relates, as duly amended or varied from time to time;

"licensed area" means an area in respect of which a licence is in force;

"mining trade" means a trade consisting only of working a mine which is a qualifying mine or, in the case of a trade consisting partly of such an activity and partly of one or more other activities, the part of the trade consisting only of working such a mine which is treated by virtue of section 76 as a separate trade;

"petroleum" means petroleum within the meaning of section 2 (1) of the Petroleum and Other Minerals Development Act, 1960 , won or capable of being won under the authority of a licence;

"petroleum activities" means any one or more of the following activities, that is to say:

( a ) petroleum exploration activities,

( b ) petroleum extraction activities, and

( c ) the acquisition, enjoyment or exploitation of petroleum rights;

( a ) winning petroleum from a relevant field, including searching in that field for, and winning access to, such petroleum,

( b ) transporting as far as dry land petroleum that is so won from a place not on dry land, or

( c ) effecting the initial treatment and storage of petroleum that is so won from the relevant field;

"petroleum profits", in relation to a company which is chargeable to corporation tax on its profits, means the income of the company from petroleum activities and any amount to be included in its total profits in respect of chargeable gains accruing to the company from disposals of petroleum-related assets;

"petroleum-related asset" means any of the following assets or any part of such an asset, that is to say:

( a ) any petroleum rights,

( b ) any asset representing exploration expenditure or development expenditure,

( c ) shares deriving their value or the greater part of their value, whether directly or indirectly, from petroleum activities, other than shares which are dealt in on a stock exchange;

"petroleum rights" means rights to petroleum to be extracted or to interests in, or to the benefit of, petroleum, and includes an interest in a licence;

"petroleum trade" means a trade consisting only of trading activities which are petroleum activities or, in the case of a trade consisting partly of such activities and partly of other activities, the part of the trade consisting only of trading activities which are petroleum activities which is treated by virtue of section 76 as a separate trade;

"qualifying mine" has the meaning assigned to it in section 1 of the Finance (Taxation of Profits of Certain Mines) Act, 1974 ;

"relevant field" means an area in respect of which a licence, being a petroleum lease, is in force.

(2) For the purposes of this Chapter, two companies are associated with one another if—

( a ) one is a 51 per cent. subsidiary of the other,

( b ) each is a 51 per cent. subsidiary of a third company, or

( c ) one is owned by a consortium of which the other is a member,

and for the purposes of paragraph (c) a company is owned by a consortium if all the ordinary share capital of that company is directly and beneficially owned between them by five or fewer companies, which companies are in this Chapter referred to as "the members of the consortium".

Separation of trading activities.

76.—(1) Where a person carries on any petroleum activities as part of a trade and those activities, apart from any other activity, would constitute a trade, then those activities shall be treated for all the purposes of the Tax Acts and the Capital Gains Tax Acts as a separate trade, distinct from all other activities carried on by him as part of the trade, and any necessary apportionment shall be made of receipts and expenses.

(2) Where a person works a qualifying mine as part of a trade, that activity shall be treated for the purposes of this Chapter as a separate trade, distinct from all other activity carried on by him as part of the trade, and any necessary apportionment shall be made of receipts and expenses.

Reduction of corporation tax.

77.—(1) In this section—

"petroleum profits on which corporation tax falls finally to be borne", in relation to a company, means the amount of the petroleum profits of the company after making all deductions and giving or allowing all reliefs that for the purposes of corporation tax are made from, or given or allowed against, or are treated as reducing—

( a ) those profits, or

( b ) income or chargeable gains, if any, included in those profits;

"relevant petroleum lease" means a petroleum lease in respect of a relevant field, which is a field which was discovered by petroleum exploration activities carried on under a licence (other than a petroleum lease) which authorises the carrying on of those activities for a period which, apart from any extension of the period or revision or renewal of the licence—

( a ) is not longer than 10 years, where the petroleum lease is granted by the Minister for Energy before the 1st day of June, 2003,

( b ) is longer than 10 years and is not longer than 15 years, where the petroleum lease is granted by the Minister for Energy before the 1st day of June, 2007, or

( c ) is longer than 15 years, where the petroleum lease is granted by the Minister for Energy before the 1st day of June, 2013.

(2) Corporation tax payable by a company for an accounting period shall be reduced by the amount, if any, determined by the formula

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where—

I is the amount for the accounting period of the income to which this section applies, and

R is the rate per cent. of corporation tax specified in subsection (1) of section 1 of the Corporation Tax Act, 1976 , for the financial year or years in which the accounting period falls:

Provided that where part of the accounting period falls in one financial year (referred to hereafter in this proviso as the "first-mentioned financial year") and the other part falls in the financial year succeeding the first-mentioned financial year and different rates of corporation tax are in force under subsection (1) of section 1 of the said Act for each of those years, then R shall be the rate per cent. determined by the formula

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where—

A is the rate per cent. in force for the first-mentioned financial year,

B is the rate per cent. in force for the financial year succeeding the first-mentioned financial year,

C is the length of that part of the accounting period falling in the first-mentioned financial year,

D is the length of that part of the accounting period falling in the financial year succeeding the first-mentioned financial year, and

E is the length of the accounting period.

(3) The income to which this section applies shall be the income of a company for an accounting period determined by the formula

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where—

F is the amount for the accounting period of the company's petroleum profits on which corporation tax falls finally to be borne,

G is the amount to be included in the company's profits brought into charge to corporation tax for the accounting period in respect of chargeable gains accruing to the company from disposals of petroleum-related assets,

S is the aggregate of the income of the company for the accounting period which is—

( a ) trading income attributable to sales of petroleum won by it, or

( b ) income, other than trading income, from the enjoyment or exploitation of petroleum rights,

under a relevant petroleum lease granted to it or a company associated with it, and

T is the aggregate of the income of the company for the accounting period from its petroleum trade or other petroleum activities.

(4) For the purposes of subsection (3), the income of a company for an accounting period which is trading income attributable to sales of petroleum won by the company under a relevant petroleum lease shall be the income, if any, determined by the formula

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where—

O is the income of the company for the accounting period from its petroleum trade,

P is the aggregate of money or money's worth which is receivable by the company from sales in the accounting period of petroleum won by it under the relevant petroleum lease, and

Q is the aggregate of money or money's worth which is receivable by the company from sales of petroleum in the accounting period in the course of carrying on its petroleum trade.

Treatment of losses, etc.

78.—(1) Notwithstanding the provisions of section 307 of the Income Tax Act, 1967 , and section 16 (2) of the Corporation Tax Act, 1976 —

( a ) as respects a loss incurred by a person in a petroleum trade, relief shall not be given—

(i) under the said section 307, against any income other than income arising from petroleum activities, or

(ii) under the said section 16 (2), against any profits other than petroleum profits,

and

( b ) relief shall not be given—

(i) under the said section 307, against income arising from petroleum activities, or

(ii) under the said section 16 (2), against petroleum profits,

as respects any loss, other than a loss incurred in a petroleum or a mining trade, incurred by a person.

(2) Notwithstanding section 310 of the Income Tax Act, 1967 , and section 19 (1) of the Corporation Tax Act, 1976 , the amount of any income of a person which is within the charge to tax under Case IV of Schedule D, and which is income arising from petroleum activities, shall not be reduced by the amount of any loss which can be relieved under the said section 310 or the said section 19 (1), other than a loss incurred in petroleum activities; and the amount of any loss so incurred shall not be treated under either of those sections as reducing the amount of any income other than income arising from petroleum activities.

(3) Notwithstanding the proviso to subsection (1) of section 296 of the Income Tax Act, 1967 , and section 14 (6) of the Corporation Tax Act, 1976 , a capital allowance which is to be given by discharge or repayment of tax, or in charging income under Case V of Schedule D, shall not to any extent be given effect—

( a ) under the said section 296, against income arising from petroleum activities, or

( b ) under the said section 14 (6), against petroleum profits.

Restriction of group relief.

79.—(1) On a claim for group relief made by a claimant company in relation to a surrendering company, group relief shall not be allowed against any petroleum profits of the claimant company except to the extent that the claim relates to—

( a ) a loss incurred by the surrendering company in a petroleum or mining trade, or

( b ) charges on income paid, other than to a connected person, by the surrendering company which consist of payments made wholly and exclusively for the purposes of such a trade,

and group relief in respect of any such loss incurred by the surrendering company, or in respect of any charge on income paid by the surrendering company which is a payment made wholly and exclusively for the purposes of such a trade, shall not be allowed against any profits of the claimant company other than its petroleum profits.

(2) Section 157 of the Corporation Tax Act, 1976 , shall apply for the purposes of this section, and, in subsection (1), "claimant company" and "surrendering company" have the meanings assigned to them, respectively, by section 107 of that Act.

Restriction of relief for losses on certain disposals.

80.—(1) Notwithstanding any provisions of the Capital Gains Tax Acts or of the Corporation Tax Acts relating to the deduction of allowable losses for the purposes of capital gains tax or of corporation tax on chargeable gains—

( a ) an allowable loss accruing on a disposal of an asset other than a petroleum-related asset shall not be deducted from the amount of a chargeable gain accruing on a disposal of a petroleum-related asset, and

( b ) an allowable loss accruing on a disposal of a petroleum-related asset shall not be deducted from the amount of a chargeable gain accruing on a disposal of an asset other than a petroleum-related asset.

(2) Subsection (8) of section 28 of the Capital Gains Tax Act, 1975 , shall have effect as respects the application of that section to a disposal of assets which have been used by the person disposing of them for the purposes of a petroleum trade as if each reference to a "trade" or "trades" in the said subsection were, respectively, a reference to a "petroleum trade" or "petroleum trades" within the meaning of those terms for the purposes of this Chapter.

(3) This section shall not have effect as respects any disposal made before the 24th day of April, 1992.

Interest and charges on income.

81.—(1) In computing the amount of—

( a ) a person's profits or gains for the purposes of income tax, or

( b ) a person's income for the purposes of corporation tax,

arising from a petroleum trade, no deduction shall be made in respect of—

(i) any interest payable by the person to a connected person to the extent that the amount of the interest exceeds, for whatever reason, the amount which, having regard to all the terms on which the money in respect of which it is payable was borrowed and the standing of the borrower, might have been expected to be payable if the lender and the borrower had been independent parties dealing at arm's length,

(ii) interest payable by the person on any money borrowed to meet expenditure incurred on petroleum exploration activities, or

(iii) interest payable by the person on any money borrowed to meet expenditure incurred in acquiring petroleum rights from a connected person.

(2) Section 84 (2) (d) (iv) of the Corporation Tax Act, 1976 , shall not apply to so much of any interest as—

( a ) would, but for the said section 84 (2) (d) (iv), be deductible in computing the amount of a company's income from a petroleum trade,

( b ) would not be precluded by any provision in subsection (1) from being so deducted, and

( c ) is interest payable to a company 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,

and, for the purposes of paragraph (c) "resident of the United States of America" has the meaning assigned to it by the Convention set out in Schedule 8 to the Income Tax Act, 1967 ; and a company shall be regarded as being a resident of a territory other than the United States of America if it is so regarded under the provisions of arrangements made with the government of that territory and having the force of law by virtue of section 361 of the said Act.

(3) Notwithstanding section 10 of the Corporation Tax Act, 1976 —

( a ) no deduction shall be allowed from that part of a company's profits which consists of petroleum profits in respect of—

(i) a charge on income paid by the company to a connected person, or

(ii) any other charge on income paid by the company unless it is a payment made wholly and exclusively for the purposes of a petroleum or mining trade carried on by the company,

and

( b ) no deduction shall be allowed from that part of a company's profits which consists of profits other than petroleum profits in respect of any charge on income paid by the company which is a payment made wholly and exclusively for the purposes of a petroleum trade carried on by the company.

(4) In applying section 433 of the Income Tax Act, 1967 , to any annual payment made by a person whose profits or gains for the purposes of income tax arise wholly or partly from petroleum activities—

( a ) the profits or gains arising from those activities shall not be treated as profits or gains which have been brought into charge to income tax—

(i) where the annual payment is made to a connected person, or

(ii) unless (but subject to subparagraph (i)) the payment is made wholly and exclusively for the purposes of a petroleum or mining trade carried on by the person making the payment,

and

( b ) profits or gains, other than profits or gains arising from petroleum activities, shall not be treated as profits or gains which have been brought into charge to income tax where the annual payment is made wholly and exclusively for the purposes of a petroleum trade carried on by the person making the payment.

(5) Relief shall not be allowed—

( a ) under section 16 (7) of the Corporation Tax Act, 1976 , in respect of a payment to which subsection (3) (a) (i) applies, or

( b ) under section 316 of the Income Tax Act, 1967 , in respect of a payment to which subsection (4) (a) (i) applies,

where the payment is made wholly and exclusively for the purposes of a petroleum trade.

(6) Section 157 of the Corporation Tax Act, 1976 , shall apply for the purposes of this section, save that, for the purposes of determining whether a person is connected with another person whose profits or gains arising from a petroleum trade are chargeable to income tax and by whom interest to which subsection (1) (i) relates is payable, or by whom an annual payment to which subsection (4) relates is made, the provisions of section 16 (3) of the Finance (Miscellaneous Provisions) Act, 1968 , shall apply.

(7) In any case where, for an accounting period of a company, charges on income paid by the company are allowable under section 10 of the Corporation Tax Act, 1976 —

( a ) such amount of those charges as, by virtue of subsection (3)-

(i) is not allowable against a part of the company's profits, but

(ii) is allowable against the remaining part (hereafter in this subsection referred to as "other profits") of its profits,

exceeds the other profits, and

( b ) the amount of that excess is greater than the amount (if any) by which the total of the charges on income which, subject to subsection (3), are allowable to the company under the said section 10 exceeds the total of the company's profits,

then, for the purpose of enabling the company to surrender the excess referred to in paragraph (a) by way of group relief, section 116 (6) of the Corporation Tax Act, 1976 , shall have effect as if—

(I) the reference therein to the amount paid by the surrendering company by way of charges on income were a reference to so much of that amount as, by virtue of subsection (3), is allowable only against the company's other profits, and

(II) the reference therein to the surrendering company's profits were a reference to its other profits alone.

Restriction of set-off of advance corporation tax.

82.—(1) Section 39 of the Finance Act, 1983 , shall have effect subject to the provisions of subsection (2).

(2) Where advance corporation tax is paid by a company (hereafter in this subsection referred to as "the distributing company") in respect of a distribution made by it to an associated company which is resident in the State—

( a ) that advance corporation tax shall not be set against the distributing company's liability to corporation tax on any income included in its petroleum profits, and

( b ) if the benefit of any amount of that advance corporation tax is surrendered under section 45 of the Finance Act, 1983 , by the distributing company to another company, the corresponding amount of advance corporation tax which, under that section, that other company is treated for the purposes of section 39 of that Act as having paid shall not be set against that other company's liability to corporation tax on any income included in its petroleum profits.

(3) This section shall not have effect as respects any distribution made before the 24th day of April, 1992.

Development expenditure: capital allowances and charges.

83.—(1) Subject to subsection (4), the provisions of the Tax Acts regarding allowances and charges in respect of capital expenditure shall have effect in relation to a petroleum trade as if each reference therein to machinery or plant included a reference to assets, not being machinery or plant, representing development expenditure.

(2) In relation to assets representing development expenditure, subsection (1) of section 241 of the Income Tax Act, 1967 , shall, subject to subsection (3), have effect as if "to be made to him, as representing the diminished value by reason of wear and tear of that machinery or plant during the chargeable period, shall be a sum equal to the value of that machinery or plant at the commencement of the chargeable period, and such allowance shall be made in taxing the trade" were substituted for all the words from "shall be a sum equal to five-fourths of the amount" to the end of the subsection.

(3) Assets representing development expenditure shall not be treated, for the purposes of subsection (1) of section 241 of the Income Tax Act, 1967 , as being in use for the purposes of a petroleum trade at the end of any chargeable period or its basis period which ends before the commencement of production of petroleum in commercial quantities from the relevant field in connection with which the assets were provided.

(4) Parts XIV and XV, and Chapters I, III and IV of Part XVI, of the Income Tax Act, 1967 , and sections 2 and 4 of the Finance Act, 1968 , shall not have effect as respects development expenditure.

( 5 ) ( a ) For the purposes of this section, assets representing development expenditure shall be deemed to include assets (hereafter in this subsection referred to as "leased assets") provided for leasing to a person carrying on a petroleum trade where such leased assets would, if they had been provided by that person, be assets representing development expenditure; and, where this paragraph applies,

(i) section 241 of the Income Tax Act, 1967 , shall have effect as if the trade for the purposes of which the leased assets are (or would, under subsection (5) of the said section 241, be regarded as being) in use were a petroleum trade carried on by the lessor, and

(ii) section 40 of the Finance Act, 1984 , shall have effect as if each reference therein to machinery or plant included a reference to assets, not being machinery or plant, representing development expenditure.

( b ) For the purposes of subsection (4), capital expenditure on the provision of leased assets shall be deemed to be development expenditure.

Exploration expenditure: allowances and charges.

84.—(1) Subject to subsections (5) and (16), where a person carrying on a petroleum trade has incurred any exploration expenditure (not being expenditure which has been or is to be met directly or indirectly by any other person) there shall be made to him for the chargeable period related to the expenditure an allowance equal to the amount of the expenditure.

(2) Where a person carrying on a petroleum trade has incurred any exploration expenditure in respect of which an allowance has been made to him under subsection (1) and he disposes of assets representing any amount of that expenditure, a charge (hereafter in this section referred to as a "balancing charge") equal to the net amount or value of the consideration in money or money's worth received by him on the disposal shall be made on him for the chargeable period related to the disposal or, if the disposal occurs after the date on which the trade is permanently discontinued, for the chargeable period related to the discontinuance:

Provided that the amount on which a balancing charge is made shall not exceed the amount of the allowance made to the person under subsection (1) in respect of the amount of exploration expenditure represented by the assets so disposed of.

(3) Where any assets representing exploration expenditure are destroyed, they shall, for the purposes of subsection (2), be treated as if they had been disposed of immediately before their destruction, and any sale, insurance, salvage or compensation moneys received in respect of the assets by the person carrying on the petroleum trade shall be treated as if they were consideration received on that disposal.

(4) Where a person disposes of any assets representing exploration expenditure incurred by him in connection with an area which at the time of the disposal is, or which subsequently becomes, a relevant field (or part of such a field), the person who acquires the assets shall, if he carries on a petroleum trade which consists of or includes the working of the relevant field (or, as the case may be, the part of the relevant field), be deemed, for the purposes of this section, to have incurred—

( a ) on the day on which he acquires the assets, or

( b ) if later, on the day on which he commences to work the area connected with the assets as a relevant field (or, as the case may be, as part of the relevant field),

an amount of exploration expenditure equal to the lesser of—

(i) the amount of the exploration expenditure represented by the assets, and

(ii) the amount or value of the consideration given by him on the acquisition of the assets.

(5) Any exploration expenditure incurred by a person before he commences to carry on a petroleum trade shall be treated for the purposes of subsection (1) as if it had been incurred by that person on the first day on which he does carry it on:

Provided that no account shall be taken, for the purposes of this subsection, of expenditure incurred in connection with an area which is not a relevant field, or part of such a field, which is being worked in the course of carrying on the petroleum trade, if the expenditure was incurred more than 25 years prior to that first day.

(6) Where a person incurs exploration expenditure before he commences to carry on a petroleum trade and subsection (5) has effect as respects that expenditure and, before he commences to carry on that trade, he disposes of assets representing any amount of that expenditure, the allowance falling to be made to him under this section in respect of that expenditure shall be reduced by the net amount or value of any consideration in money or money's worth received by him on that disposal.

(7) For the purposes of this section, save for the purposes of subsection (4) and of subsection (5) (other than the proviso thereto), the day on which any expenditure is incurred shall be taken to be the day on which the sum in question becomes payable.

(8) Any allowance or balancing charge made to or on a person under this section shall be made to or on him in taxing his petroleum trade but, subject to subsection (4), such allowance shall not be made in respect of the same expenditure in taxing more than one such trade.

(9) Section 241 (3) of the Income Tax Act, 1967 , shall apply in relation to an allowance under this section as it applies in relation to an allowance in respect of wear and tear of machinery or plant.

(10) Section 14 (2) (a) of the Corporation Tax Act, 1976 , shall apply for the purposes of this section, and paragraph 1 of the First Schedule to that Act shall have effect for the interpretation of this section.

(11) Subsections (2) and (3) of section 297 of the Income Tax Act, 1967 , shall have effect in determining the chargeable period (being a year of assessment) for which an allowance or a balancing charge falls to be made under this section.

(12) References in Parts XIII to XVI of the Income Tax Act, 1967 , and in section 22 of the Finance Act, 1971 , to capital expenditure shall be deemed not to include references to expenditure which is exploration expenditure, and exploration expenditure shall be deemed not to be expenditure on know-how for the purposes of section 2 of the Finance Act, 1968 .

(13) Notwithstanding subsection (12), the following provisions of the Income Tax Act, 1967 , that is to say:

( a ) section 299,

( b ) section 303,

( c ) the definition of "sale, insurance, salvage or compensation moneys" in subsection (1) of section 304, and

( d ) subsections (4) and (5) of section 304,

shall, with any necessary modifications, apply for the purposes of this section as they apply for the purposes of Part XVI of that Act.

(14) Schedule 1 to the Capital Gains Tax Act, 1975 , shall have effect as if—

( a ) in paragraph 2 (2), the reference to a balancing charge included a reference to a balancing charge under this section, and

( b ) in paragraph 5, references to a capital allowance (or capital allowances) and to a balancing charge included references, respectively, to an allowance (or allowances) and a balancing charge under this section.

(15) Section 29 of the Finance Act, 1975 , shall have effect as if subsections (1) and (2) thereof included references to this section.

(16) For the purposes of this section, a person shall be deemed not to be carrying on a petroleum trade unless and until he is carrying on, in the course of that trade, trading activities which are petroleum extraction activities.

(17) Any reference in this section to assets representing any exploration expenditure shall be construed as including a reference to a part of or share in any such assets; and any reference therein to a disposal or acquisition of any such assets shall be construed as including a reference to a disposal or acquisition of a part of, or share in, any such assets.

Exploration expenditure incurred by certain companies.

85.—(1) For the purposes of section 84, where exploration expenditure (not being expenditure which has been or is to be met directly or indirectly by any other person) is incurred by a company (hereafter in this section referred to as an "exploration company") and—

( a ) another company is a wholly-owned subsidiary of the exploration company, or

( b ) the exploration company is, at the time the exploration expenditure is incurred, a wholly-owned subsidiary of another company (hereafter in this section referred to as "the parent company"), then, the expenditure, or so much of it as the exploration company specifies—

(i) in the case referred to in paragraph (a), may at the election of the exploration company be deemed to have been incurred by such other company (being a wholly-owned subsidiary of the exploration company) as the exploration company specifies, and

(ii) in the case referred to in paragraph (b), may at the election of the exploration company be deemed to have been incurred by the parent company or by such other company (being a wholly-owned subsidiary of the parent company) as the exploration company specifies.

(2) Where, under subsection (1), exploration expenditure incurred by an exploration company is deemed to have been incurred by another company (hereafter in this subsection referred to as "the other company")-

( a ) the expenditure shall be deemed to have been incurred by the other company at the time at which it was actually incurred by the exploration company,

( b ) in a case where the expenditure was incurred at a time prior to the incorporation of the other company, that company shall be deemed to have been in existence at the time the expenditure was incurred, and

( c ) in the application of section 84 to a petroleum trade carried on by the other company, the expenditure shall be deemed—

(i) to have been incurred by the other company for the purposes of that trade, and

(ii) not to have been met directly or indirectly by the exploration company.

(3) The same expenditure shall not be taken into account in relation to more than one trade by virtue of this section.

(4) A deduction or allowance shall not be made in respect of the same expenditure both by virtue of this section and under some other provision of the Tax Acts.

(5) A company shall, for the purposes of subsection (1), be deemed to be a wholly-owned subsidiary of another company if and so long as all of its ordinary share capital is owned by that other company, whether directly or through another company or other companies, or partly directly and partly through another company or other companies, and paragraph 6 of the Fifth Schedule to the Finance Act, 1973 , shall have effect for the purposes of supplementing this subsection as if the references therein to section 39 of, and the said Schedule to, that Act were a reference to this subsection.

Abandonment expenditure: allowances and loss relief.

86.—(1) In this section "abandonment losses" means so much of a loss in a petroleum trade incurred by a person in a chargeable period as does not exceed the total amount of allowances which—

( a ) fall to be made to him for that chargeable period under this section, and

( b ) have been brought into account in determining the amount of the said loss in the petroleum trade.

(2) Subject to subsections (5) to (9), where in a chargeable period a person, who is or has been carrying on, in relation to a relevant field or a part of it, petroleum extraction activities other than effecting the initial treatment and storage of petroleum that is won from the relevant field, incurs abandonment expenditure (not being expenditure which has been or is to be met directly or indirectly by any other person) in relation to the field or the part of it, as the case may be, there shall be made to him for the chargeable period an allowance equal to the amount of the expenditure.

(3) As respects so much of a loss in a petroleum trade incurred by a person in a chargeable period as is an abandonment loss—

( a ) the person shall be entitled, on making a claim in that behalf, to such repayment of income tax as is necessary to secure that the aggregate amount of income tax for the chargeable period and the three chargeable periods last preceding it will not exceed the amount which would have been borne by him if his income arising from petroleum activities for each of those chargeable periods had been reduced by the lesser of—

(i) the abandonment loss, or

(ii) so much of the abandonment loss as could not, on that claim, be treated as reducing such income of a later chargeable period:

Provided that relief under this paragraph in respect of a loss shall be deemed for all the purposes of the Tax Acts to be relief given under subsection (1) of section 307 of the Income Tax Act, 1967 , such that—

(I) no further relief shall be given under subsection (1) of the said section 307 in respect of so much of an abandonment loss as is an amount in respect of which relief has been given under this paragraph, and

(II) subsections (2) to (6) of section 307, and section 318, of the Income Tax Act, 1967 , shall apply to relief under this paragraph as they apply to relief under the said section 307,

and

( b ) subsections (2) and (3) of section 16 of the Corporation Tax Act, 1976 , shall have effect as if the time specified in the said subsection (3) were a period of three years ending immediately before the chargeable period in which the loss is incurred.

(4) So much of the abandonment losses, if any, incurred by a person on or before the day on which he permanently discontinues to carry on a petroleum trade (hereafter in this subsection referred to as "the first-mentioned trade") as would not, apart from this subsection, be allowed against, or treated as reducing, his or any other person's income or profits, shall be treated as incurred by him in the first chargeable period of the first petroleum trade (hereafter in this section referred to as "the new trade") to be carried on by him after the permanent discontinuance of the first-mentioned trade as a trading expense of the new trade.

(5) Where a petroleum trade carried on by a person has been permanently discontinued, then any abandonment expenditure incurred by the person after the discontinuance shall be treated for the purposes of subsection (2) as if it had been incurred by him on the last day on which he carries on the petroleum trade.

(6) For the purposes of this section, save for the purposes of subsections (4) and (5), the day on which any expenditure is incurred shall be taken to be the day on which the sum in question becomes payable.

(7) Any allowance made to a person under this section shall be made to him in taxing his petroleum trade but such allowance shall not be made in respect of the same expenditure in taxing more than one trade.

(8) References in Parts XIII to XVI of the Income Tax Act, 1967 , and in section 22 of the Finance Act, 1971 , to capital expenditure shall be deemed not to include references to expenditure which is abandonment expenditure:

Provided that section 303 and subsection (5) of section 304 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply for the purposes of this section as they apply for the purposes of Part XVI of that Act.

(9) Subsections (9), (10), (11) and (15) of section 84 shall apply for the purposes of this section as they apply for the purposes of that section.

Valuation of petroleum in certain circumstances.

87.—(1) Where a person disposes, otherwise than by way of a sale at arm's length, of petroleum acquired by him by virtue of petroleum activities carried on by him, then, for all the purposes of the Tax Acts, the disposal of the petroleum and its acquisition by the person to whom the disposal was made shall be treated as having been for a consideration equal to the market value of the petroleum at the time the disposal was made.

( 2 ) ( a ) Where a person who carries on, in the course of a trade, petroleum activities and other activities, makes a relevant appropriation of any petroleum won or otherwise acquired by him in the course of the petroleum activities without disposing of the petroleum, then, for all the purposes of the Tax Acts, he shall be treated as having, at the time of the appropriation—

(i) sold the petroleum in the course of the petroleum trade carried on by him, and

(ii) bought it in the course of a separate trade consisting of the activities other than the petroleum activities,

and as having so sold and bought it at a price equal to its market value at the time the petroleum was relevantly appropriated.

( b ) In this subsection "relevant appropriation", in relation to any petroleum won or otherwise acquired in the course of the carrying on by a person of petroleum activities, means the appropriation of that petroleum to refining or to any use except use for petroleum extraction activities carried on by him, and "relevantly appropriated" shall be construed accordingly.

(3) For the purposes of this section, the market value at any time of any petroleum shall be the price which that petroleum might reasonably be expected to fetch on a sale thereof at that time if the parties to the transaction were independent parties dealing at arm's length.

Treatment of certain disposals.

88.—(1) This section shall have effect where, on or after the 14th day of January, 1985, a person, with the consent of the Minister for Energy, makes a disposal of an interest in a licensed area (including the part disposal of such an interest or the exchange of an interest owned by him in one licensed area for an interest in another licensed area) and the disposal is shown to the satisfaction of the said Minister to have been made for the sole purpose of ensuring the proper exploration, delineation or development of any licensed area.

(2) Where this section has effect as respects a disposal by a person (neither being nor including such an exchange as is referred to in subsection (1)) and the consideration received by him is, in the relevant period, wholly and exclusively applied (whether by him, or on his behalf by the person acquiring the asset disposed of) for the purposes of either or both of the following, that is to say:

( a ) petroleum exploration activities, and

( b ) searching for or winning access to petroleum in a relevant field,

then, for the purposes of the Capital Gains Tax Acts, if the person making the disposal makes a claim in that behalf, the disposal shall not be treated as involving any disposal of an asset but the consideration shall not, as respects any subsequent disposal of any asset acquired or brought into being or enhanced in value by the application of that consideration, be deductible from the consideration for that subsequent disposal in the computation of the chargeable gain accruing on that disposal.

(3) Where this section has effect as respects such an exchange as is referred to in subsection (1), then, for the purposes of the Capital Gains Tax Acts, if a person making such an exchange makes a claim in that behalf, the exchange shall not be treated as involving any disposal or acquisition by him of an asset but the asset given by him and the asset acquired by him in the exchange shall be treated as the same asset acquired as the asset given by him was acquired:

Provided that—

( a ) if the person receives for the exchange any consideration in addition to the interest in the other licensed area, this subsection shall not have effect as respects the claim made by him unless the additional consideration is applied in the relevant period in the manner referred to in subsection (2) but, where that additional consideration is so applied and the person makes a claim that this subsection should have effect, it shall so have effect as if the asset given by him in exchange were such portion only of that asset as is equal in value to the interest in the other licensed area taken by him in the exchange and subsection (2) shall have effect as if the remaining portion of the asset so given by him were disposed of by him for that additional consideration, and

( b ) if the person gives for the exchange any consideration in addition to the interest in a licensed area given by him in the exchange, this subsection shall have effect as respects the claim made by him as if the interest in the other licensed area taken by him in the exchange were such portion only of that interest as is equal in value to the interest in the licensed area given by him in the exchange.

(4) In this section "relevant period", as respects a disposal, means the period beginning 12 months before and ending 3 years after the disposal, or such longer period as the Minister for Energy may, on the application of the person making the disposal, certify to be, in his opinion, reasonable having regard to the proper exploration, delineation or development of any licensed area.

PART II CUSTOMS AND EXCISE

CHAPTER I Excise Duty on Beer

Interpretation (Chapter 1).

89.—(1) In this Chapter—

"% vol." means alcoholic strength by volume;

"alcohol" means pure ethyl alcohol;

"alcoholic strength by volume" means the ratio of the volume of alcohol present in a product at a temperature of 20° Celsius to the total volume of the product at the same temperature, the said ratio being expressed as a percentage;

"approved warehouse" means a premises approved under section 95;

"approved warehousekeeper" means a person approved under section 95;

"beer" includes ale, stout, porter, spruce beer and black beer, and any other description of beer, and any liquor which is made or sold as a description of beer or a substitute for beer, and which on analysis of a sample thereof at any time is found to contain more than 1.2% vol.;

"brewer's licence" means a licence to brew beer issued under section 43 of the Finance (1909-10) Act, 1910;

"brewer for sale" has the meaning assigned to it by section 19 of the Inland Revenue Act, 1880;

"Commissioners" means the Revenue Commissioners;

"container", in relation to beer, means a tank, cask, keg, can, bottle or any other receptacle in which beer is kept;

"information" includes any representation of fact, whether in words or otherwise;

"information in a non-legible form" includes information on microfilm, microfiche, magnetic tape or disc;

"licensed brewer" means a person who is the holder of a brewer's licence;

"materials" means any substance intended to be used in the production of, or for incorporation in, beer;

"offered for sale" includes an invitation to treat;

"officer" means an officer of the Commissioners;

"package", in relation to beer, means to put beer into tanks, casks, kegs, cans, bottles or any other receptacles of a kind in which beer is distributed to wholesalers or retailers and cognate words shall be construed accordingly;

"private brewer" means a brewer of beer, not being a brewer for sale;

"prescribed" means specified in, or determined in accordance with, regulations made by the Commissioners under section 98;

"records" includes information in a non-legible form;

"standard barrel" means 36 gallons of worts of a specific gravity of 1,055 degrees or 36 gallons of beer of which the worts were, before fermentation, of a specific gravity of 1,055 degrees;

"worts" means the liquid which is fermented to produce beer.

(2) References in any statute or instrument made under statute to the strength of beer shall be construed as references to its alcoholic strength by volume.

Duty of excise on beer.

90.—(1) In addition to any other duty which may be chargeable, there shall be charged, levied and paid on—

( a ) beer brewed in the State and on beer imported into the State, and

( b ) beer in respect of which the duty of excise referred to in section 93 may be remitted or repaid under that section by the Commissioners,

a duty of excise per hectolitre per cent. of alcohol in the beer at such rate as may be specified from time to time by Act of the Oireachtas.

(2) Subject to the provisions of this Chapter, the duty of excise on beer imposed by subsection (1) shall be charged, levied and paid in accordance with regulations under section 98.

Exemptions from duty.

91.—(1) Subject to compliance with any conditions the Commissioners see fit to impose, the duty of excise imposed by section 90 shall not be charged or levied on beer—

( a ) not exceeding 0.5% vol.;

( b ) produced in the State by a private brewer, provided that the said beer is brewed by the said brewer solely for his own domestic use.

( 2 ) ( a ) Beer brewed by a private brewer shall not be sold or offered for sale by any person.

( b ) A person who contravenes the provisions of paragraph (a) of this subsection shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £1,000.

(3) Any beer in respect of which an offence was committed under subsection (2) and any vessels, utensils and materials for brewing in the possession of a private brewer in respect of which such an offence was committed shall be liable to forfeiture.

Remissions and repayments of duty.

92.—The Commissioners may, subject to compliance with such conditions as they may think fit to impose, remit or repay the duty of excise imposed by section 90 on beer which is shown to their satisfaction to have been—

( a ) lost in an approved warehouse, provided no part of such loss was caused by illegal or improper means;

( b ) used to brew or manufacture beer not exceeding 0.5% vol.;

( c ) used as an ingredient in the production or manufacture of a beverage, other than beer, not exceeding 1.2% vol.;

( d ) used for experimental, quality control, scientific or research purposes;

( e ) in the case of beer delivered for consumption in the State, withdrawn from the market because its condition or age renders it unfit for human consumption;

( f ) exported from the State as merchandise or shipped for use as stores.

Remission or repayment of certain duty chargeable before appointed day.

93.—(1) This section applies to stocks of beer, including worts, which are shown to the satisfaction of the Commissioners to lie or be stored or kept at midnight on the day preceding the day which the Minister for Finance appoints by order under section 102 for the coming into operation of section 90, in premises owned or occupied by a licensed brewer or in an approved warehouse and to be the product of brewing carried out by a licensed brewer in whose premises or approved warehouse the said stocks lie or are stored or kept.

(2) Where it is shown to the satisfaction of the Commissioners that the duty of excise imposed by paragraph 7 of the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 ( S.I. No. 307 of 1975 ), has been charged before the day which the Minister for Finance appoints by order under section 102 for the coming into operation of section 90, in respect of stocks of beer, including worts, to which this section applies, they may, subject to compliance with subsection (3) and with such conditions as they may think fit to impose, remit or repay the said duty.

(3) A licensed brewer or an approved warehousekeeper may, not later than the 6th day following the day specified in subsection (2), make a return to the Commissioners in a form approved of by them giving such information as they may thereby require in relation to the quantity of beer, including worts, expressed in standard barrels, to which this section applies, and claiming remission or repayment of the duty of excise referred to in the said subsection and charged in respect of the said stocks before the day specified in the said subsection.

(4) A licensed brewer or an approved warehousekeeper shall—

( a ) produce to any officer, if so requested by him, the trade books and all accounts and documents belonging to or in the possession of such brewer or warehousekeeper that the officer considers to be necessary for the purpose of verifying a return made or to be made under the provisions of this section, and

( b ) render to such officer such reasonable assistance as may be requested of him by the officer in the taking of an account of the stocks of beer, including worts, to which the return relates.

(5) Every licensed brewer or approved warehousekeeper who makes a return under this section which is false or misleading in any material respect, or fails or refuses to comply with a request under this section, shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £1,000.

(6) Any stocks of beer, including worts, in respect of which an offence was committed under subsection (5) shall be liable to forfeiture.

Revocation of brewer's licence and offence by brewer for sale.

94.—(1) The Commissioners may, without prejudice to any other penalty to which a licensed brewer may be liable, if such brewer fails to comply with any provision of this Chapter, revoke the licence granted.

(2) If any person, other than a private brewer, shall brew beer without holding a brewer's licence for the time being in force or without having the premises in which the brewing of beer is carried out approved under section 95, he shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £1,000.

(3) Any beer, and any vessels, utensils and materials for brewing, in respect of which an offence was committed under subsection (2), shall be liable to forfeiture.

Approval of persons and premises for the brewing, holding and packaging of beer without payment of duty.

95.—(1) A person approved by the Commissioners under this section may brew and hold, in premises approved by them under this section in relation to him, beer liable to the duty of excise imposed by section 90 without payment of that duty (and such person and such premises are hereinafter in this section referred to as an "approved warehousekeeper" and an "approved warehouse", respectively).

(2) An approved warehousekeeper may also, without payment of duty, carry on in an approved warehouse such operations as may be prescribed on, or in relation to, such of the beer as may be prescribed.

(3) A person shall not be approved under this section unless he appears to the Commissioners to satisfy such requirements for approval as they may think fit to impose.

( 4 ) ( a ) A premises shall not be approved under this section unless—

(i) it is used, or intended for use, for the brewing, holding or packaging of beer, and

(ii) where it is used, or intended for use, for the brewing of beer, it is owned or occupied by a licensed brewer, who shall in the prescribed manner deliver to an officer such information as may be required of him in relation to such premises and in relation to all rooms, places and vessels therein,

and the premises appears to the Commissioners to satisfy such requirements for approval as the Commissioners may think fit to impose.

( b ) Notwithstanding the provisions of paragraph (a) requiring a premises used, or intended for use, for the brewing of beer to be owned or occupied by a licensed brewer, and imposing an obligation on such brewer to deliver in the prescribed manner to an officer such information as may be required of him in relation to such premises and in relation to all rooms, places and vessels therein, such brewer may be deemed to have complied with such provisions if, at midnight on the day preceding the day which the Minister for Finance appoints by order under section 102 for the coming into operation of this section, he has made entry of such premises and all rooms, places and vessels therein in accordance with the provisions of section 22 of the Inland Revenue Act, 1880.

(5) The Commissioners may approve a person or premises under this section for such periods and subject to such conditions (including the giving of security) as they may think fit to impose and the approved person or approved premises shall comply with any such conditions.

(6) The Commissioners may, as a condition of approval of a premises under this section, allow or prohibit the carrying out of specified activities in such premises or in any part or parts thereof.

(7) The Commissioners may at any time for reasonable cause—

( a ) vary the terms of their approval of any person or premises under this section, or

( b ) restrict the extent of the premises which are so approved.

(8) The Commissioners may, without prejudice to any other penalty to which an approved warehousekeeper may be liable—

( a ) if an approved warehousekeeper contravenes or fails to comply with any condition of approval imposed by them under this section or with any provision of this Chapter or of regulations thereunder, or

( b ) if an approved warehouse fails to comply with any condition of approval imposed by them under this section,

revoke the approval granted.

(9) The provisions of the Customs Acts, and of the statutes which relate to the duties of excise and the management thereof and of any instrument relating to duties of excise made under statute, relating to warehouses and warehoused goods and their deposit and storage therein and removal thereto or therefrom shall, with any necessary modifications, apply to premises approved under this section and to beer allowed to be held in such premises as if the said premises and beer were warehouses and warehoused goods within the meaning of the said provisions.

Provision of facilities by warehousekeeper and powers of inspection, etc., of officers.

96.—(1) An approved warehousekeeper of an approved warehouse shall, in respect of such warehouse—

( a ) provide and maintain such appliances as are, in the opinion of the Commissioners, necessary to enable an officer to take a true and accurate account of any materials or beer;

( b ) allow an officer at any time to use anything so provided and to use any other appliances in the possession of such warehousekeeper, and provide all other facilities and all assistance, as are necessary to enable such officer to take such account.

(2) An officer may, at all reasonable times, enter premises in which brewing of beer is being or is reasonably believed by the officer to be carried on or in which beer is reasonably believed by the officer to be held, stored or kept or in which any books, accounts or other documents or records relating or reasonably believed by the officer to relate to the brewing, importation, purchase, holding, storage, packaging, sale or disposal of beer are kept and may there—

( a ) search for, inspect, take account of, and, without payment, take samples of any materials or beer,

( b ) require any person to produce all books, accounts or other documents or records relating to the brewing, importation, purchase, holding, storage, packaging, sale or disposal of beer and, in the case of such information in a non-legible form (including such information in a computer), to produce it in a legible form, or to reproduce it in a permanent legible form, and

( c ) search for, inspect, and take copies of or extracts from any books, accounts or other documents or records (including, in the case of any such information in a non-legible form, a copy of or extract from such information in a permanent legible form) relating or believed by the officer to relate to the brewing, importation, purchase, holding, storage, packaging, sale or disposal of beer,

and such officer may remove and retain the said books, accounts or other documents or records for such period as may be reasonable for their further examination, and such person shall provide to such officer all facilities and assistance necessary for the exercise by such officer of any power conferred on him by this subsection.

(3) Where an officer enters any premises under subsection (2) and any materials or beer are found therein, or any books, accounts or other documents or records specified in that subsection are produced or found therein, he may question any person found therein in relation to such materials or beer or in relation to such books, accounts or other documents or records and any such person shall give to such officer all information required of him by such officer which is in his possession or procurement.

(4) Any person who fails without lawful and sufficient excuse to comply with any requirement under subsection (1) or (2), or who fails or refuses to give any information required of him under subsection (3), or who gives any such information which is false or misleading, or who resists, obstructs or impedes an officer in the exercise of any power conferred on him by this section, shall be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000.

Treatment of excess or deficiency in stocks and fraudulent evasion of duty.

97.—(1) If, whenever an officer takes an account of beer in an approved warehouse in accordance with subsection (2) of section 96, the quantity, or strength, or both, of the beer is found to be greater or less than the quantity, or strength, or both, of the beer which, according to any accounts the approved warehousekeeper is required to keep in accordance with regulations under section 98, ought to be therein, the approved warehousekeeper shall be guilty of an offence and shall be liable on conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of double the duty of excise imposed by section 90 which would be charged on a quantity and strength of beer equal to the excess or the deficiency, whichever the case may be, if such a quantity and strength of beer were charged with the duty imposed by the said section, or £1,000, whichever is the greater.

(2) Notwithstanding subsection (1), the approved warehousekeeper shall not be liable to any penalty under the said subsection if he can satisfactorily account to the Commissioners for the excess or deficiency, whichever the case may be, but where there is an excess and the approved warehousekeeper is not prosecuted in respect thereof, he shall pay duty on the excess.

(3) If any person is knowingly concerned in the taking of any steps with a view to the fraudulent evasion, whether by himself or by another, of the duty of excise imposed by section 90, he shall be guilty of an offence and shall be liable—

( a ) on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of three times the amount of the duty concerned, or £1,000, whichever is the greater, or to imprisonment for a term not exceeding six months, or to both, or

( b ) on conviction on indictment to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of three times the amount of the duty concerned, or £10,000, whichever is the greater, or to imprisonment for a term not exceeding 5 years, or to both.

( 4 ) ( a ) The beer in excess (if any) found following the account taken under subsection (1) shall be liable to forfeiture.

( b ) Any beer in respect of which an offence was committed under subsection (3) and any conveyances, containers or other articles used in connection, or associated in any way whatsoever, with such beer shall be liable to forfeiture.

(5) For the purposes of this section, where the strength of beer cannot be established to the satisfaction of an officer, such strength shall be assumed to be 7 per cent. unless or until the person concerned furnishes to the officer proof to the contrary.

Regulations (Chapter I).

98.—(1) The Commissioners may, with a view to managing, securing and collecting the duty of excise on beer imposed by section 90 or to the protection of the revenue derived from such duty, make regulations.

(2) In particular, but without prejudice to the generality of subsection (1), regulations under this section may—

( a ) govern the production (including determining when the production of beer begins and when it is completed), importation, treatment, packaging, keeping, holding, storage, removal from storage and exportation of materials and beer;

( b ) require a licensed brewer to furnish, at such times and in such form as may be specified, a true and accurate return accounting for all materials received or produced by him, or used by him in the brewing of beer, and containing a reconciliation between such materials and beer brewed;

( c ) regulate and, in such circumstances as may be prescribed, prohibit the addition of substances to, the mixing of, or the carrying out of other operations on or in relation to beer;

( d ) provide for securing, paying, collecting, remitting and repaying the duty;

( e ) determine the duty chargeable, the person liable to pay it and, in that connection, prescribe the method of charging the duty, the due date for payment and the method of payment, and any such regulations may provide that duty shall be charged according to the volume and strength of the beer declared by the warehousekeeper or importer or that ascertained by an officer, whichever is the greater;

( f ) provide for charging duty, in such circumstances as may be prescribed, by reference to a strength which the beer might reasonably be expected to have, or the rate of duty in force, at a time other than that at which the beer becomes chargeable;

( g ) provide for charging duty by reference to a strength and volume which the beer might reasonably be expected to have by reference to the strength and the volume ascertained in respect of a representative sample of such beer;

( h ) prescribe the method for ascertaining the strength and the volume of beer, and any such regulations may provide that for the purpose of charging duty on beer the strength and the volume of the beer may be ascertained by reference to any information given on the container by means of a label or otherwise or to any documents relating to the container;

( i ) regulate the movement and transportation of beer in such circumstances as may be prescribed;

( j ) require an approved warehousekeeper and a person who imports beer to keep in a specified manner, and to preserve for a specified period, such accounts and records relating to the production, importation, purchase, receipt, keeping, holding, storage, packaging, sale, disposal or use by him of materials and beer as may be specified, and to keep for a specified period any other books, documents or records relating to any of the matters aforesaid and to allow an officer to inspect and take copies of such accounts and records and of any other books, documents or records kept by him relating to any of the matters aforesaid;

( k ) require an approved warehousekeeper and a person who imports beer to furnish at such times and in such form as may be specified returns in relation to such matters as may be specified.

(3) As respects beer chargeable with the duty of excise imposed by section 90 and which has not been paid, regulations under this section may, without prejudice to the generality of subsection (1), make provision—

( a ) regulating the approval of persons and premises under section 95;

( b ) regulating the brewing, holding or packaging of, or the carrying out of other operations on or in relation to, any such beer in an approved warehouse without payment of the duty;

( c ) for securing and collecting the duty on any such beer held in an approved warehouse;

( d ) permitting the removal of any such beer from an approved warehouse without payment of the duty, in such circumstances and subject to such conditions as may be prescribed;

( e ) for such persons as may be prescribed to be liable to pay the duty on any such beer held on, or removed without payment of duty from, an approved warehouse, and for the circumstances in which, and the time at which, they are liable to do so.

(4) Regulations under this section may make different provision for persons, premises or beer of different classes or descriptions, for different circumstances and for different cases.

(5) Regulations under this section shall be laid before Dáil Éireann as soon as may be after they are made and, if a resolution annulling the regulations is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulations have been laid before it, the regulations shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Offences (Chapter I).

99.—(1) A person who contravenes or fails to comply with any of the provisions of this Chapter (other than subsection (2) (b) of section 91, section 93 (5), section 94 (2), section 96 (4), and subsections (1) and (3) of section 97) or of regulations under section 98 shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000.

(2) Any beer in respect of which an offence was committed under subsection (1), and any materials or articles in respect of which the offence was committed, shall be liable to forfeiture.

Application of enactments (Chapter I).

100.—(1) ( a ) Subject to paragraph (b) of this subsection, the provisions of the Customs Acts and of any instrument relating to duties of customs made under statute, and not otherwise applied by this Chapter, shall, with any necessary modifications, apply in relation to the duty of excise imposed by section 90 on beer imported into the State as they apply in relation to duties of customs.

( b ) Where, in relation to the duty of excise imposed by section 90, there is a provision in this Chapter corresponding to a provision of the Customs Acts or of any instrument relating to duties of customs made under statute, the latter provision shall not apply in relation to that duty of excise.

( 2 ) ( a ) Subject to paragraph (b), the provisions of the statutes which relate to the duties of excise and the management thereof and of any instrument relating to duties of excise made under statute, and not otherwise applied by this Chapter, shall, with any necessary modifications, apply in relation to the duty of excise imposed by section 90 on beer brewed in the State as they apply to duties of excise.

( b ) Where, in relation to the duty of excise imposed by section 90, there is a provision in this Chapter corresponding to a provision of the statutes which relate to the duties of excise or of any instrument relating to the duties of excise made under statute, the latter provision shall not apply in relation to that duty of excise.

Repeals and revocations (Chapter I).

101.—(1) Each enactment specified in column (2) of Part I of the Third Schedule is hereby repealed to the extent specified in column (3) of that Part.

(2) Paragraph 7 of the Imposition of Duties (No. 221) (Excise Duties) Order, 1975, is hereby revoked.

Commencement (Chapter I).

102.—This Chapter and Part I of the Third Schedule shall come into operation on such day as the Minister for Finance may appoint by order, and different days may be so appointed for different provisions or for different purposes.

CHAPTER II Implementation of Council Directive No. 92/12/EEC.

Interpretation (Chapter II).

103.—(1) In this Chapter—

"authorised warehousekeeper" means a person authorised by the Revenue Commissioners to produce, process, hold, receive or dispatch in the course of his business, excisable products as defined in section 104 under a duty-suspension arrangement;

"Commissioners" means the Revenue Commissioners;

"Community" means the territory of the Community as defined by the Treaty establishing the European Economic Community and, in particular, Article 227 thereof except for the following national territories:

( a ) in the case of Germany, the Island of Heligoland and the territory of Büsingen,

( b ) in the case of Italy, Livigno, Campione d'Italia and the Italian waters of Lake Lugano,

( c ) in the case of Spain, the Canary Islands, Ceuta and Melilla, and

( d ) in the case of France, the overseas Departments of the Republic;

"the Directive" means Council Directive No. 92/12/EEC of 25th February 1992 * ² ;

"duty-suspension arrangement" means an arrangement under which excisable products are produced, processed, held or moved, excise duty being suspended;

"information" includes any representation of fact, whether in words or otherwise;

"information in a non-legible form" includes information on microfilm, microfiche, magnetic tape or disc;

"Member State" means a Member State of the Community;

"non-registered trader" means a person other than an authorised warehousekeeper or registered trader who may, in the course of his business, occasionally receive excisable products from another Member State, subject to compliance with conditions imposed by the Commissioners, under a duty-suspension arrangement;

"non-State vendor" means a person who has his place of business in another Member State and who is authorised by the authorities of that Member State to sell excisable products which have already been released for consumption in that Member State to persons resident in the State, and who dispatches or transports such products directly or indirectly to such persons resident in the State;

"officer" means an officer of the Commissioners;

"the Order of 1975" means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 ( S.I. No. 307 of 1975 );

"prescribed" means specified in, or determined in accordance with, regulations made by the Commissioners under section 117;

"records" includes information in a non-legible form;

"registered trade" means a person other than an authorised warehousekeeper, who is authorised by the Commissioners to receive, in the course of his business, excisable products from another Member State under a duty-suspension arrangement;

"State vendor" means a person who is established in the State and who is authorised by the Commissioners to sell excisable products which have already been released for consumption in the State to persons resident in other Member States, and who dispatches or transports such products directly or indirectly, to such persons in other Member States;

"tax representative" means a person, established in the State, who is authorised by the Commissioners to act in the State as an agent on behalf of persons delivering excisable products from another Member State;

"tax warehouse" means a premises or place approved by the Commissioners, where excisable products are produced, processed, held, received or dispatched under a duty-suspension arrangement by an authorised warehousekeeper in the course of his business.

(2) In this Chapter, transactions originating in or intended for one of the following national territories are to be treated as originating in or intended for—

( a ) France, in the case of the Principality of Monaco;

( b ) Germany, in the case of Jungholz and Mittelberg (KIeines Walsertal);

( c ) the United Kingdom, in the case of the Isle of Man;

( d ) Italy, in the case of San Marino.

Excisable products.

104.—For the purposes of this Chapter the following shall be excisable products:

( a ) spirits chargeable with the duty of excise imposed by paragraph 4 (2) of the Order of 1975,

( b ) wine chargeable with the duty of excise imposed by paragraph 5 (2) of the Order of 1975,

( c ) made wine chargeable with the duty of excise imposed by paragraph 6 (2) of the Order of 1975,

( d ) beer chargeable with the duty of excise imposed by section 90,

( e ) cider and perry chargeable with the duty of excise imposed by paragraph 8 (2) of the Order of 1975,

( f ) mineral hydrocarbon light oil chargeable with the duty of excise imposed by paragraph 11 (1) of the Order of 1975,

( g ) hydrocarbon oil, not otherwise liable to a duty of excise, chargeable with the duty of excise imposed by paragraph 12 (1) of the Order of 1975,

( h ) gaseous hydrocarbons in liquid form chargeable with the duty of excise imposed by section 41 (1) of the Finance Act, 1976 , and

(i) tobacco products chargeable with the duty of excise imposed by section 2 of the Finance (Excise Duty on Tobacco Products) Act, 1977 .

Warehousing.

105.—(1) Production, processing and holding of excisable products where the excise duty has not been paid, shall only take place in a tax warehouse.

(2) A person approved by the Commissioners under this section may produce, process, hold, receive or dispatch on premises approved by them under this section in relation to him, excisable products without payment of duty (and such person and such premises are hereafter in this section referred to as an "authorised warehousekeeper" and "tax warehouse", respectively).

(3) A person shall not be approved as an authorised warehousekeeper under this section unless he appears to the Commissioners to satisfy such requirements for approval as they may think fit to impose.

(4) A premises shall not be approved as a tax warehouse under this section unless—

( a ) it is used, or intended for use, for the production, processing, holding, receipt or dispatch of excisable products, and

( b ) where it is used for the production or processing of excisable products, it is owned or occupied by a person who is licensed for such production or processing under any provision of the statutes which relate to the duties of excise and the management thereof and any instrument relating to the duties of excise made under statute, and who shall deliver to an officer such information as may be required of him in relation to such premises and in relation to all rooms, places and vessels therein,

and the premises appears to the Commissioners to satisfy such requirements for approval as they may think fit to impose.

(5) Notwithstanding the provisions of subsection (4) requiring a premises used, or intended for use, for the production or processing of excisable products to be owned or occupied by a person referred to in subsection (4) (b), and imposing an obligation on such person to deliver to an officer such information as may be required of him in relation to such premises and in relation to all rooms, places and vessels therein, such person may be deemed by the Commissioners to have complied with such provisions if, at midnight on the day preceding the day on which this provision comes into operation, he has made entry of such premises and all rooms, places and vessels therein in accordance with any provision of the statutes which relate to the duties of excise and the management thereof and any instrument relating to the duties of excise made under statute.

(6) The Commissioners may approve a person or premises under this section for such periods and subject to such conditions (including the giving of security) as they may think fit to impose and the approved person or approved premises shall comply with any such conditions.

(7) The Commissioners may, as a condition of approval of a premises under this section, allow or prohibit the carrying out of specified activities in relation to specified excisable products in such premises or in any part or parts thereof.

(8) The Commissioners may, at any time for reasonable cause and following such notice as is reasonable in the circumstances—

( a ) vary the terms of their approval of any person or premises under this section, or

( b ) restrict the extent of the premises which are so approved, or

( c ) revoke an approval granted.

(9) The Commissioners may, subject to such additional conditions as they see fit to impose (including the giving of any additional security), deem premises approved by them as approved warehouses, and proprietors and occupiers of approved warehouses and approved warehousekeepers, respectively, under any provision of the statutes which relate to the duties of excise and the management thereof and any instrument relating to the duties of excise made under statute, either before or after the passing of this Act, to be tax warehouses and authorised warehousekeepers, respectively.

(10) Except where otherwise provided for in this Chapter or in regulations made thereunder, the provisions of the Customs Acts, and of the statutes which relate to the duties of excise and the management thereof and of any instrument relating to duties of excise made under statute, relating to warehouses and warehoused goods and their deposit and storage therein and removal thereto or therefrom shall, with any necessary modifications, apply to premises approved under this section and to excisable products allowed to be held in such premises as if the said premises and excisable products were warehouses and warehoused goods within the meaning of the said provisions.

(11) Any person who, otherwise than in a tax warehouse, produces, processes or holds excisable products on which excise duty has not been paid, or who does not comply with any of the conditions imposed by this section, shall be presumed, until the contrary is proved, to have contravened or failed to comply with (as the case may be) the provisions of this section.

(12) Any person who contravenes or fails to comply with any provision of this section shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to a penalty under the law relating to customs or the law relating to excise (as the case may be), of £1,000.

(13) Any excisable products in respect of which an offence has been committed under this section shall be liable to forfeiture.

Treatment of excisable products released for consumption in another Member State.

106.—(1) Subject to subsection (2), the duties of excise imposed by the provisions referred to in section 104 on excisable products shall apply and have effect in relation to excisable products, released for consumption in another Member State, and imported into the State.

(2) With the exception of the excisable products specified in paragraphs (f), (g) and (h) of section 104 that have been imported into the State (other than in the fuel tank of a motor vehicle or in a portable fuel tank the capacity of which does not exceed 10 litres) excise duty shall not be chargeable in the State on excisable products released for consumption in another Member State which have been acquired by a private individual in another Member State for his own use and not for commercial purposes, and, which are transported by such private individual from the other Member State in which the products were acquired.

(3) For the purpose of subsection (2), the question of whether excisable products referred to in that subsection are for a private individual's own use or are for commercial purposes shall be determined in accordance with regulations under section 117.

(4) Without prejudice to the provisions of subsection (2), it shall be unlawful for any person to acquire excisable products released for consumption in another Member State for the purpose of importing them into the State or to import such products into the State unless he complies with the following, that is to say:

( a ) declares to an officer his intention to acquire, and secures the excise duty on, such excisable products in advance of the dispatch or collection of the said excisable products from the other Member State,

( b ) pays the excise duty on such excisable products in the manner prescribed, and

( c ) complies with such conditions as may be prescribed in regulations under section 117.

(5) Without prejudice to subsection (2), where excisable products which have been released for consumption in another Member State are found in the State and a requirement specified in paragraph (a), (b) or (c) of subsection (4) has not been complied with in respect of the said excisable products, any person in whose possession or charge the said excisable products are found shall be presumed, until the contrary is proved, to have contravened or failed to comply with (as the case may be) subsection (4).

(6) Any person who contravenes or fails to comply with any provision of this section or of any regulations made thereunder or any person who takes possession or charge of excisable products to which this section applies in the knowledge that a requirement specified in paragraph (a), (b) or (c) of subsection (4) has not been complied with in respect of those products shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence under the Customs Acts and shall for each such offence forfeit either three times the value of the excisable products concerned including any duty or tax chargeable thereon, or £1,000, whichever is the greater.

(7) Any excisable products in respect of which an offence has been committed under this section, or any goods which are packed with or used in concealing such products, shall be liable to forfeiture and, where any such products are found in, on, or in any manner attached to, any vehicle or other conveyance, the said vehicle or other conveyance shall be deemed to have been made use of in the conveyance of the said products and shall also be liable to forfeiture.

Provisions relating to vendors.

107.—(1) No person resident or established in the State shall dispatch or transport excisable products, released for consumption in the State, to another Member State unless he is approved by the Commissioners as a State vendor.

( 2 ) ( a ) The Commissioners may approve a person as a State vendor.

( b ) An approval as aforesaid shall be granted for such periods and subject to such conditions as the Commissioners may think fit to impose and, in particular, a State vendor shall not be approved unless he—

(i) secures, prior to the dispatch of excisable products, the duty payable in respect of those products in the Member State of destination, and

(ii) agrees to keep such accounts, records and other data or information as may be specified by the Commissioners under the terms of his approval.

( c ) The Commissioners may at any time for reasonable cause and following such notice as is reasonable in the circumstances, revoke an approval or vary its terms.

(3) A non-State vendor shall not dispatch or transport or cause to be dispatched or transported excisable products, released for consumption in another Member State, to persons resident or established in the State unless he—

( a ) appoints a tax representative, as provided for in section 108, in the State,

( b ) declares to an officer either directly or through a tax representative appointed by him his intention to dispatch or transport or to have dispatched or transported such excisable products to persons resident or established in the State prior to the dispatch of such products,

( c ) provides evidence to an officer that he has complied with the requirements of Article 10.3 of the Directive, and

( d ) complies with such other conditions as the Commissioners may prescribe in regulations under section 117.

(4) Where excisable products to which subsection (3) applies are found in the State and a requirement specified in paragraph (a), (b), (c) or (d) of the said subsection has not been complied with in respect of the said excisable products, any person in whose possession or charge the said excisable products are found shall be presumed, until the contrary is proved, to have contravened or failed to comply with (as the case may be) the said subsection.

(5) Any person who contravenes or fails to comply with any provision of this section or any person who takes possession or charge of excisable products to which subsection (3) applies in the knowledge that a requirement specified in paragraph (a), (b), (c) or (d) of the said subsection has not been complied with in respect of those products shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000.

(6) Any excisable products in respect of which an offence has been committed under this section, or any goods which are packed with or used in concealing such products, shall be liable to forfeiture and, where any such products are found in, on, or in any manner attached to, any vehicle or other conveyance, the said vehicle or other conveyance shall be deemed to have been made use of in the conveyance of the said products and shall also be liable to forfeiture.

Tax representatives.

108.—(1) The Commissioners may approve a person to act as a tax representative on behalf—

( a ) a non-State vendor referred to in subsection (3) of section 107, and

( b ) a person authorised by the authorities of another Member State to operate a tax warehouse under the provisions of Article 12 of the Directive.

(2) Approval of a tax representative shall be granted for such periods and shall be subject to such conditions, including the provision of security, as the Commissioners may prescribe in regulations under section 117, and the Commissioners may at any time for reasonable cause and following such notice as is reasonable in the circumstances, revoke an approval or vary its terms.

(3) A tax representative shall be liable for the payment of excise duty on excisable products delivered to the State by or on behalf of the persons specified in paragraphs (a) and (b) of subsection (1) on whose behalf the said representative is acting, and such excise duty shall be charged, levied and paid in the prescribed manner.

(4) A tax representative who contravenes or fails to comply with any provision of this section or any regulations made thereunder, shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to a customs penalty of £1,000.

(5) Any excisable products in respect of which an offence has been committed under this section, or any goods which are packed with or used in concealing such products, shall be liable to forfeiture, and where any such products are found in, on, or in any manner attached to, any vehicle or other conveyance, the said vehicle or other conveyance shall be deemed to have been made use of in the conveyance of the said products and shall also be liable to forfeiture.

Movement of excisable products under a dutysuspension arrangement from the State to other Member States.

109.—(1) This section applies to the release of excisable products by an authorised warehousekeeper from a tax warehouse in the State for delivery to another Member State including delivery to another Member State for export outside the Community.

(2) Subject to such conditions as the Commissioners may think fit to impose, an authorised warehousekeeper may release excisable products to which this section applies only where they are intended for delivery to—

( a ) a person authorised by the authorities of another Member State to operate a tax warehouse under the provisions of Article 12 of the Directive, or

( b ) a trader registered with the authorities of another Member State under the provisions of Article 16.2 of the Directive, or

( c ) a trader referred to Article 16.3 of the Directive having his place of business in another Member State and who provides evidence in advance of the dispatch of the said excisable products to the said authorised warehousekeeper by means of a document (hereafter in this Chapter referred to as "a duty document") certifying that—

(i) he has declared to the authorities of the Member State in which he has his place of business his intention to obtain the said excisable products from the said authorised warehousekeeper, and

(ii) he has paid to or secured with his authorities the excise duty on the said excisable products in accordance with procedures laid down by the said authorities,

( d ) a territory outside the Community and are being transported to their destination through another Member State or other Member States.

(3) Subject to subsection (4), where excisable products to which this section applies are released for delivery, the authorised warehousekeeper shall be liable for payment of the excise duty on the said excisable products, and duty shall be charged, levied and paid in the prescribed manner.

(4) The liability to excise duty under subsection (3) shall be fully or partly discharged and satisfied and excise duty shall not be payable where, and to the extent that, the said excisable products have been fully or partly received by the person or traders referred to in subsection (2) or have been exported from the Community and evidence to this effect is received within the prescribed time and in the prescribed form.

(5) For the purpose of subsection (4), evidence of receipt shall be provided by means of a copy of the accompanying document, referred to in section 111, returned duly endorsed—

( a ) by the said person or traders, and

( b ) in the case of such Member States, as may be specified by the Commissioners in regulations under section 117, by the authorities of such Member States in which the said person or traders have their place of business, or

( c ) in the case of exports from the Community, by the authorities of the Member State based at the customs office at the point of departure from the Community,

(as the case may be), to the effect that the said excisable products have been duly received or exported (as the case may be).

(6) Where it is shown to the satisfaction of the Commissioners that excise duty has been paid in respect of excisable products to which this section applies, they may, subject to compliance with such conditions as they may prescribe in regulations under section 117 remit or repay the said duty.

(7) An authorised warehousekeeper who contravenes or fails to comply with any provision of this section or with any regulations made thereunder shall be guilty of an offence and shall, without prejudice to any other penalty to which he may be liable, be liable on summary conviction to an excise penalty of £1,000 and the Commissioners may, on conviction on more than one occasion, revoke the approval of an authorised warehousekeeper.

Movement of excisable products under a duty-suspension arrangement to the State from other Member States.

110.—(1) This section applies to the receipt of excisable products under a duty-suspension arrangement by persons resident or established in the State from a person authorised by the authorities of another Member State to operate a tax warehouse under the provisions of Article 12 of the Directive.

(2) An authorised warehousekeeper may receive excisable products from a person authorised by the authorities of another Member State to operate a tax warehouse under the provisions of Article 12 of the Directive.

(3) It shall be unlawful for any person, other than an authorised warehousekeeper, to receive excisable products under a duty-suspension arrangement from a person authorised by the authorities of another Member State to operate a tax warehouse under the provisions of Article 12 of the Directive unless he is—

( a ) a registered trader, or

( b ) a non-registered trader and complies with the provisions of subsection (5).

( 4 ) ( a ) This subsection applies to the trader referred to in paragraph (a) of subsection (3).

( b ) A trader shall neither hold nor dispatch excisable products under a duty-suspension arrangement.

( c ) Registration of a trader shall be granted for such periods and shall be subject to such conditions (including the provision of security, the keeping of specified accounts and records and compliance with any other specified control requirements) as the Commissioners may prescribe in regulations under section 117.

( d ) The Commissioners may at any time for reasonable cause and following such notice as is reasonable in the circumstances revoke any registration so granted or vary its terms.

( e ) Excise duty shall be chargeable at the time of receipt of excisable products by the said trader and shall be charged, levied and paid in the manner prescribed.

( 5 ) ( a ) This subsection applies to the trader referred to in paragraph (b) of subsection (3).

( b ) A trader shall neither hold nor dispatch excisable products under a duty-suspension arrangement and shall, in relation to each and every transaction involving excisable products to which this section applies, be required to—

(i) declare in writing to an officer his intention to obtain excisable products under a duty-suspension arrangment from another Member State, in advance of the dispatch of the said excisable products from that Member State, giving details of the intended transaction in the manner prescribed,

(ii) provide appropriate security to cover his liability for the payment of the excise duty on the said excisable products in the State,

(iii) pay the excise duty on receipt of the products in the manner prescribed, and

(iv) comply with such other requirements as may be prescribed.

(6) Where excisable products to which this section applies are found in the State and a requirement or condition specified in subsection (4) or (5) or in any regulations made under either of the said subsections has not been complied with in respect of the said excisable products, any person in whose possession or charge the said excisable products are found shall be presumed, until the contrary is proved, to have contravened or failed to comply with (as the case may be) subsection (4) or (5), as appropriate.

(7) Any person who contravenes or fails to comply with any provision of this section or any regulations made thereunder or any person who takes possession or charge of excisable products to which this section applies in the knowledge that a requirement or condition specified in subsection (4) or (5) or in any regulations made under either of the said subsections has not been complied with in respect of those products shall be guilty of an offence and shall, without prejudice to any other penalty to which he may be liable, be liable on summary conviction to a customs penalty of £1,000.

(8) Any excisable products in respect of which an offence has been committed under this section or any goods which are packed with or used in concealing such products, shall be liable to forfeiture and, where any such products are found in, on, or in any manner attached to, any vehicle or other conveyance, the said vehicle or other conveyance shall be deemed to have been made use of in the conveyance of the said products and shall also be liable to forfeiture.

Accompanying documents.

111.—(1) With the exception of excisable products referred to in subsection (2) of section 106, excisable products, in the course of delivery—

( a ) from another Member State to any person in the State,

( b ) from any person in the State to any person in another Member State, and

( c ) through the State to or from a Member State from or to another Member State,

shall, at all times while within the State during the course of such delivery, be accompanied by a document (hereafter in this Chapter referred to as "an accompanying document").

(2) Where an authorised warehousekeeper dispatches excisable products under a duty-suspension arrangement for delivery to a person in another Member State not being either—

( a ) a person authorised by the authorities of another Member State to operate a tax warehouse under the provisions of Article 12 of the Directive, or

( b ) a trader registered with the authorities of another Member State under the provisions of Article 16.2 of the Directive,

he shall ensure that, in addition to the accompanying document, a copy of the duty document referred to in paragraph (c) of subsection (2) of section 109 is dispatched with and accompanies the said excisable products in the course of their delivery.

(3) Where excisable products are dispatched under a duty-suspension arrangement by a person authorised by the authorities of another Member State to operate a tax warehouse under the provisions of Article 12 of the Directive to a trader referred to in paragraph (b) of subsection (3) of section 110, such trader shall take all reasonable steps to ensure that such excisable products shall, in addition to the accompanying document, be accompanied at all times while within the State by another document certifying in the manner prescribed that—

( a ) the transaction involving the said excisable products has been declared to an officer prior to the dispatch of the said products from the other Member State, and

( b ) the duty on the said excisable products has been either paid or secured in the State,

and, where the document referred to in this subsection does not for any reason accompany the said excisable products, it shall be a sufficient and lawful excuse for the said trader to show that he had informed the person sending or dispatching the said excisable products of the legal requirement for such a document.

(4) For the purpose of giving effect to the provisions of this section, regulations under section 117 may, without prejudice to the generality of that section, make provision—

( a ) in relation to the accompanying document, specifying the person responsible for drawing up the document and specifying its form and content and the procedures to be followed in relation to its completion, issue (including the number of copies to be issued and the persons to whom they are to be issued), receipt, certification and the specifying of any other conditions and requirements as appear to the Commissioners to be necessary for the proper operation of the provisions of the Directive, and

( b ) in relation to the duty document, specifying any essential features of such document and providing for any necessary control requirements relating to the authentication of the said document.

(5) Any person who contravenes or fails to comply with any provision of this section or with any regulations made thereunder shall be guilty of an offence and shall, without prejudice to any other penalty to which he may be liable, be liable on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000.

Repayments of excise duty.

112.—(1) The Commissioners may, in respect of the duties of excise imposed by the provisions referred to in section 104 and subject to such conditions as they may think fit to impose and subject to the provisions of subsection (2), repay any such duties paid on excisable products released for consumption in the State where the said excisable products—

( a ) are intended for delivery for commercial purposes to another Member State, or

( b ) are purchased by a person in another Member State from a State vendor.

(2) The Commissioners shall prescribe in regulations under section 117, the conditions to be fulfilled and the procedures to be followed by any person claiming repayment of excise duty under subsection (1), and, in particular, they shall—

( a ) prescribe the form, manner and time of making an application for repayment of the duty,

( b ) determine the nature of the evidence of payment of duty in the State to be provided with the said application,

( c ) require evidence of payment or securing of the excise duty in the Member State to which the excisable products are to be delivered,

( d ) require the use of an accompanying document, as provided for in section 111,

( e ) determine the nature of the evidence of delivery of the excisable products from the State to be provided with the said application, and

( f ) specify any other such conditions and requirements as appear to the Commissioners to be necessary.

(3) Any person who, in connection with a claim for repayment of excise duty under this section, delivers any incorrect return, statement or accounts or furnishes any incorrect information or who contravenes or fails to comply with any regulations under this section shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000, and any excise duty repaid shall be payable immediately by the said person.

Exemptions.

113.—(1) The duties of excise imposed by the provisions referred to in section 104 shall, subject to compliance with any conditions or limitations the Commissioners see fit to impose, not be charged or levied on excisable products delivered—

( a ) under diplomatic arrangements in the State,

( b ) to international organisations recognised as such by the State, and the members of such organisations based in the State, within the limits and under the conditions laid down by international conventions establishing such organisations or by other agreements, and

( c ) for consumption under any agreement entered into between the State and a country other than a Member State where such agreement also provides for exemption from value-added tax.

(2) In any case where the Commissioners so decide and subject to any conditions they see fit to impose, effect may be given to the provisions of this section by means of a repayment of excise duty.

(3) Any person who, in connection with a claim for exemption from liability to excise duty under this section, delivers any incorrect return, statement or accounts or furnishes any incorrect information or who contravenes or fails to comply with any provision of this section shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000, and any excise duty in respect of which exemption was claimed shall be payable immediately by the said person.

Treatment of losses.

114.—(1) The Commissioners may, in respect of the duties of excise imposed by the provisions referred to in section 104 and, subject to compliance with such conditions as may be prescribed, remit in the prescribed manner, such duties on excisable products under a duty-suspension arrangement which are shown to their satisfaction to have been lost—

( a ) during production, processing or holding in the State or transportation to a destination in the State, or

( b ) in the course of transportation to the State,

and that such loss was—

(i) due to fortuitous events or force majeure, or

(ii) a loss inherent in the nature of the excisable products in the course of their production, processing, holding or transportation.

(2) Losses, other than those referred to in subsection (1), and any shortages of excisable products under a duty-suspension arrangement shall, unless it is shown to the satisfaction of the Commissioners that the losses or shortages occurred outside the State, be liable to excise duty at the rate in operation at the time such losses or shortages occurred, as established to the satisfaction of an officer, or at the time such losses or shortages came to the notice of an officer, and duty shall be payable immediately and shall be charged, levied and paid in the prescribed manner by the person authorised to produce, process, hold, transport, deliver or receive (as the case may be) such excisable products.

(3) Any person who, in connection with a claim for remission of excise duty under this section, delivers any incorrect return, statement or accounts or furnishes any incorrect information or who contravenes or fails to comply with any regulations under this section shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000, and any excise duty remitted shall be payable immediately by the said person.

Power to stop vehicles and detain excisable products.

115.—(1) Any person in charge of any vehicle or other conveyance, in or on which excisable products are being transported or in or on which it is reasonably believed by an officer that excisable products are being transported, shall stop such vehicle or other conveyance at the request of the said officer and shall produce to such officer any accompanying document, duty document or other document to which section 111 refers.

(2) Where a person in charge of any vehicle or other conveyance stops such a vehicle or other conveyance at the request of an officer, he shall allow the officer to carry out such searches of the vehicle or conveyance as appear to the said officer to be necessary to establish that any excisable products being transported therein correspond in every material respect with the description of any such excisable products contained in the documents referred to in subsection (1).

(3) Where, following the searches referred to in subsection (2), an officer discovers any material discrepancy between the excisable products being transported and those described in the said documents and the officer is not satisfied with any reasons tendered for such discrepancy and suspects that the said excisable products may, therefore, be liable to forfeiture or where the officer suspects that the said excisable products may be liable to forfeiture for any other reason, all of the products being transported together with any vehicle or other conveyance being made use of in the transportation of the said products, may be detained by the said officer until such enquiries or investigations as may be deemed necessary by the said officer or by another officer have been made for the purpose of determining to the satisfaction of either such officer whether or not the said products are liable to forfeiture.

(4) For the purpose of subsection (3), where excisable products are found in, on or in any manner attached to, any vehicle or other conveyance, the said vehicle or other conveyance shall be deemed to have been made use of in the conveyance of the said products.

(5) When a determination referred to in subsection (3) has been made in respect of any excisable products, or upon the expiry of a period of one month from the date on which the said products were detained under the said subsection, whichever is the earlier, the said products (together with any vehicle or other conveyance, detained with the said products by virtue of the said subsection) shall be seized as liable to forfeiture under the Customs Acts or the statutes which relate to duties of excise and any instrument relating to the duties of excise made under statute and the management thereof (as the case may be), or released.

(6) Any person who resists, obstructs or impedes an officer in the exercise of any power conferred on him by this section shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000.

Powers of entry and inspection, etc. of officers.

116.—(1) An officer may, at all reasonable times, enter premises in which excisable products are being, or are reasonably believed by the officer to be, produced, processed, held, stored or kept or in which any books, accounts or other documents or records relating or reasonably believed by the officer to relate to the production, processing, holding, storage, importation, purchase, packaging or putting up for sale, sale or disposal of excisable products are kept and may there—

( a ) search for, inspect, take account of, and, without payment, take samples of, any excisable products or any materials, ingredients or other substances used or to be used in the manufacture of excisable products,

( b ) require any person to produce all books, accounts or other documents or records relating to the production, processing, holding, storage, importation, purchase, packaging, sale or disposal of excisable products and, in the case of such information in a non-legible form (including such information in a computer), to produce it in a legible form, or to reproduce it in a permanent legible form, and

( c ) search for, inspect, and take copies of or extracts from any books, accounts or other documents or records (including, in the case of any such information in a non-legible form, a copy of or extract from such information in a permanent legible form) relating or believed by the officer to relate to the production, processing, holding, storage, importation, purchase, packaging, sale or disposal of excisable products,

(2) Where an officer enters any premises under subsection (1) and any excisable products or materials, ingredients or other substances used or to be used in the manufacture of excisable products are found therein, or any books, accounts or other documents or records specified in that subsection are produced or found therein, he may question any person found therein in relation to such excisable products or such materials, ingredients or substances or in relation to such books, accounts or other documents or records and any such person shall give to such officer all information required of him by such officer which is in his possession or procurement.

(3) Any person who fails without lawful and sufficient excuse to comply with any requirement under subsection (1), or who fails or refuses to give any information required of him under subsection (2), or who gives any such information which is false or misleading, or who resists, obstructs or impedes an officer in the exercise of any power conferred on him by this section, shall be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000.

(4) Any excisable products in respect of which an offence has been committed under this section, or any goods which are packed with or used in concealing such products, shall be liable to forfeiture.

Regulations (Chapter II).

117.—(1) The Commissioners may, for the purpose of managing, receiving and collecting excise duty on the excisable products referred to in section 104, or for the protection of the revenue derived from such duties, make regulations.

(2) In particular, but without prejudice to the generality of subsection (1), regulations under this section may make provision—

( a ) governing the securing, paying, collecting, remitting and repaying of excise duty on excisable products;

( b ) governing the conditions to be complied with by a person who acquires excisable products released for consumption in another Member State for importation into the State;

( c ) governing the conditions to be complied with by a non-State vendor in relation to excisable products being dispatched by him or on his behalf to the State;

( d ) governing the registration, and the conditions to be attached to such registration, of a registered trader, including the provision of security, the accounts and records to be kept and the control requirements to be complied with;

( e ) governing the conditions to be imposed on a non-registered trader, including the provision of security, the form and content of the declaration to be given in advance of the dispatch of excisable products from another Member State under a duty-suspension arrangement and the control requirements to be complied with;

( f ) governing the approval and the conditions to be attached to the approval of a tax representative, including the provision of security, the keeping of accounts and records and notification of the place of delivery of excisable products;

( g ) specifying, in relation to an accompanying document, the obligations, requirements and procedures to be complied with by an authorised warehousekeeper in relation to—

(i) the drawing up, form, content and issue of the said document (including the number of copies to be issued and the persons to whom they are issued),

(ii) the form of endorsement which is to be accepted as evidence that excisable products have been received in another Member State, including whether such endorsement is to include certification of receipt by the authorities of particular Member States,

(iii) cases where evidence of receipt of excisable products in another Member State is not received, including the nature of any action to be taken within specified time limits;

( h ) specifying, in relation to an accompanying document, the obligations, requirements and procedures to be complied with by persons resident or established in the State receiving excisable products under a duty-suspension arrangement from another Member State including the obligations, requirements and procedures to be complied with—

(i) on receipt of a copy or copies of the said document from another Member State, or

(ii) where a copy or copies of the said document are not received or where any such copy is incomplete or where it does not accompany excisable products received;

( i ) specifying in relation to an accompanying document, the obligations, requirements and procedures to be complied with by persons—

(i) receiving or intending to receive from another Member State excisable products released for consumption in that Member State, or

(ii) dispatching or intending to dispatch to another Member State excisable products released for consumption in the State;

( j ) specifying, in relation to a duty document, any essential features of such document and any necessary control requirements relating to the authentication of the said document;

( k ) establishing rules and criteria in relation to excisable products released for consumption in another Member State and imported into the State by a private individual whereby such products may be regarded as being imported for commercial purposes;

( l ) providing for the conditions to be attached to, and the procedures to be complied with, in any case where repayment of excise duty is claimed on the delivery for commercial purposes of excisable products on which excise duty has been paid in the State to another Member State or on the purchase of such products from a State vendor by a person in another Member State;

( m ) governing any conditions to be complied with in relation to the remission of excise duty on losses of excisable products incurred during the production, processing, holding or transportation of such products under a duty-suspension arrangement, or on losses incurred in the course of transportation of such products to the State under a duty-suspension arrangement;

( n ) requiring that excisable products be packaged, marked, or put up in sealed containers in order to facilitate identification of products being moved under duty-suspension; and

( o ) requiring that excisable products released for consumption in the State be marked, stamped or made otherwise identifiable as being duty-paid.

(3) Regulations made under this section shall be laid before Dáil Éireann as soon as may be after they are made and, if a resolution annulling the regulations, is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulations have been laid before it, the regulations shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Application of enactments (Chapter II).

118.—(1) The provisions of the Customs Acts and of any instrument relating to duties of customs made under statute, and not otherwise applied by this Chapter, shall, with any necessary modifications, apply in relation to the provisions of this Chapter in respect of excisable products imported into the State as they apply in relation to duties of customs.

(2) The provisions of the statutes which relate to the duties of excise and the management thereof and of any instrument relating to duties of excise made under statute, and not otherwise applied by this Chapter, shall, with any necessary modifications apply in relation to the provisions of this Chapter in respect of excisable products produced in the State as they apply to duties of excise.

Commencement (Chapter II).

119.—This Chapter shall come into operation on such day or days as the Minister for Finance may, by order, appoint and different days may be so appointed for different provisions or for different purposes.

CHAPTER III Amusement Machine Licence Duty

Interpretation (Chapter III).

120.—(1) In this Chapter—

"officer" means an officer of the Revenue Commissioners;

"operator" includes owner, hirer or lessee of the machine, and any person responsible—

( a ) to the owner, hirer or lessee for the management of the machine,

( b ) for issuing or exchanging coins or tokens for use in playing such machine on the premises, and

( c ) for controlling the use of any such machine,

and includes a party to any contract under which an amusement machine may or is required to be in the public place at that time;

"public place" means any place to which the public have access as of right or by permission or membership and whether subject to or free of charge and includes open air venues and any offices, courts, yards and gardens which are occupied together with and are within the curtilage, or in the immediate vicinity, of the public place where amusement machines are located.

(2) A machine is an amusement machine if—

( a ) it is constructed or adapted for play of a game, and

( b ) the player pays to play the machine by the insertion of a coin or token or card or in some other way, and

( c ) the outcome of the game is determined by the action of the machine, whether or not provision is made for manipulation of the machine or use of skills by the player, and

( d ) when played once and successfully by a player, affords that player no more than an opportunity to play again (once or more often) without paying to play.

(3) Except where the Revenue Commissioners are satisfied, and so certify in writing, that by reason of the inaccessibility to the public of the place in which an amusement machine is stored it cannot be played by the public, an amusement machine (including any machine which has ceased to be so stored) shall be deemed, for the purpose of this section, to be available for play notwithstanding that it is in a state, or so positioned that it cannot be played.

Waivers and exemptions.

121.—(1) A travelling circus or other travelling show shall be exempt from the provisions of this Chapter where—

( a ) the playing of amusement machines is not the main activity or principal business at the show, and

( b ) the amusement machines are not available at a place for play over a period exceeding 19 days and have not been so available during the preceding three months as part of the show when being held at such place or anywhere within a three mile radius of such place.

(2) The Revenue Commissioners may, subject to compliance with such conditions as they may think fit to impose, repay or remit the duty imposed by section 123 where the sole purpose of the amusement machine is to provide rides for children.

Permit and licence procedure.

122.—(1) The Revenue Commissioners shall, upon application and payment of the duty imposed by this Chapter, grant to the applicant (in this section referred to as the holder)-

( a ) an amusement machine permit for the various public places specified in the application, and shall, on application of the holder of an amusement machine permit, amend the permit to apply in respect of public places other than those specified in the permit at the time of first application, and

( b ) the number of amusement machine licences applied for.

(2) Every amusement machine permit and every amusement machine licence granted under this section shall include such information and be in such form and manner as the Revenue Commissioners may from time to time approve.

Rates of duty.

123.—There shall be charged, levied and paid upon the grant of every amusement machine licence granted under section 122 an excise duty at the following rates:

( a ) on a licence expressed to remain in force for a period not exceeding one year and until the 30th day of June in the year concerned, £100;

( b ) on a licence expressed to be in force for a period not exceeding 3 months until the 15th day of September in the year concerned, £30.

Prohibition on play without permit and licence.

124.—An amusement machine shall not be made available for play in a public place unless—

( a ) the operator has a permit granted under section 122 in respect of that public place, and

( b ) there is a current licence, granted by the Revenue Commissioners under section 122, displayed at all times in a secure and conspicuous position on the machine.

Investigation, etc. by officers.

125.—An officer may, at all reasonable times, enter any public place in which amusement machines are, or are believed by such officer to be available for play and may there make such search and investigation as such officer shall think proper, and may inspect and take copies or extracts from any books or other documents or any information in the form of computerised data there found relating to, or believed by such officer to relate to, amusement machines.

Penalties (Chapter III).

126.—(1) An operator who contravenes section 124 (a) shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £100 in respect of each such offence.

(2) An operator who contravenes section 124 (b) shall, in respect of each amusement machine made available for play without a licence, be guilty of an offence and shall be liable on summary conviction to an excise penalty of £1,000 in respect of each such offence.

Forfeiture (Chapter III).

127.—Any machine in respect of which an offence was committed under section 126 (2), shall be liable to forfeiture.

Regulations (Chapter III).

128.—(1) The Revenue Commissioners may make regulations for securing the payment of the duty on amusement machine licences and generally for carrying the provisions of this Chapter in relation to such duty into effect.

(2) Every person who contravenes or fails to comply with a regulation made under subsection (1) shall be guilty of an offence and shall be liable on summary conviction thereof to an excise penalty of £1,000.

Applicability of excise statutes.

129.—The provisions of the statutes which relate to the duties of excise and the management thereof and of any instrument relating to duties of excise made under statute shall, with any necessary modifications, apply in relation to the duty imposed by this Chapter as they apply to duties of excise.

CHAPTER IV Registration and Taxation of Vehicles

Interpretation.

130.—In this Chapter, save where the context otherwise requires—

"ambulance" means a vehicle which is specially designed, constructed or adapted for the conveyance of injured or seriously ill persons to a hospital on stretchers and which is permanently fitted to accommodate and hold in position two or more standard stretchers;

"the Act of 1952" means the Finance (Excise Duties) (Vehicles) Act, 1952 ;

"authorised person" means a person authorised under section 136;

"bus" means a vehicle which is designed, constructed or adapted for the conveyance of persons and so as to provide seating accommodation in permanent fixtures for more than 16 persons (inclusive of the driver) and for the purposes of this definition—

( a ) each separate such seat in the vehicle which is 40 centimetres or more in width when measured lengthwise on the front of the seat shall be reckoned as providing seating accommodation for one person, and

( b ) each continuous such seat (which expression includes 2 or more separate seats which are divided by such means as to allow them to be used as one continuous seat) shall be reckoned as providing seating accommodation for one person in respect of each 40 centimetres of the width of the seat when measured lengthwise on the front of the seat;

"category A vehicle" means a vehicle other than a motor-cycle or a listed vehicle—

( a ) which is designed, constructed or adapted, solely or mainly for the carriage of the driver alone or the driver and one or more other persons, or

( b ) which is of not more than 3 tonnes unladen weight and has, to the rear of the driver's seat, a roofed area—

(i) which is fitted with one or more side windows, or

(ii) in which openings, suitable for the fitting of side windows, are or were incorporated and are not closed and sealed in accordance with such conditions as may be prescribed, or

(iii) in which one or more seats have been fitted or in which are provided fixtures or other devices for the purpose of fitting one or more seats, or

(iv) in which the floor is constructed or fitted otherwise than in accordance with such conditions as may be prescribed;

"category B vehicle" means a vehicle (other than a category A vehicle, a motor-cycle or a listed vehicle) which is of not more than 3 tonnes unladen weight and which has a roofed area to the rear of the driver's seat the floor of which is less than 2 metres in length when measured in such manner as may be approved by the Commissioners:

Provided that, where a motor vehicle is of not more than 1.3 tonnes unladen weight and the roofed area of the vehicle to the rear of the driver's seat has a load volume of more than 2 cubic metres when measured in such manner as the Commissioners may approve, the vehicle shall not be regarded as a category B vehicle;

"category C vehicle" means a vehicle other than a category A vehicle, a category B vehicle or a motor-cycle;

"certificate" means a certificate of registration issued under section 131 (5);

"the Commissioners" means the Revenue Commissioners;

"conversion" means the modification of a category B vehicle in such a manner as to make it a category A vehicle or the modification of a category C vehicle in such manner as to make it a category A vehicle or a category B vehicle and cognate words shall be construed accordingly;

"cylinder capacity of an engine" means the cylinder capacity of an engine calculated in accordance with regulations for the time being in force under section 1 (3) of the Act of 1952, for the purpose of a rate of duty specified in the Schedule to that Act;

"deal" means offer for hire, lease or sale in the State one or more unregistered vehicles or converted vehicles prior to the entry of the prescribed particulars thereof in the register, and cognate words shall be construed accordingly;

"listed vehicle" means one of the following vehicles, namely, an ambulance, a hearse, a bus, a special purpose vehicle, an agricultural tractor, a two-wheeled tractor, a fire engine, a fire-escape, a road sweeper, an invalid carriage, an armoured fighting vehicle, or a vehicle (not including a motor-cycle) which is shown to the satisfaction of the Commissioners to be more than 30 years old at the time of registration;

"licensing authority" means the council of a county or the corporation of a county borough which licenses a vehicle under section 1 of the Act of 1952;

"manufacture" means the making or assembling in the State of a vehicle and includes conversion and cognate words shall be construed accordingly;

"mechanically propelled vehicle" means a vehicle intended or adapted for propulsion by a mechanical means, including—

( a ) a bicycle, tricycle or quadricycle propelled by an engine or motor or with an attachment for propelling it by mechanical power, whether or not the attachment is being used, a moped, a scooter and an autocycle, and

( b ) a vehicle the means of propulsion of which is electrical or partly electrical and partly mechanical,

but not including a tramcar or other vehicle running on permanent rails or a vehicle as respects which the Commissioners are satisfied that it is designed or constructed for off-road use (other than racing vehicles, scrambling vehicles or other sporting vehicles);

"the Minister" means the Minister for Finance;

"motor-cycle" means a vehicle specified in paragraph (a) of the definition of "mechanically propelled vehicle";

"owner" means—

( a ) in relation to a vehicle (other than a vehicle specified in paragraph (b)), the person by whom the vehicle is kept,

( b ) in relation to a vehicle which is the subject of a hire-purchase agreement or a lease, the person in possession of the vehicle under the agreement or lease;

"the Order of 1979" means the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 ( S.I. No. 57 of 1979 );

"the Order of 1984" means the Imposition of Duties (No. 273) (Excise Duty on Motor-cycles) Order, 1984 ( S.I. No. 354 of 1984 );

"prescribed" means prescribed by regulations made by the Commissioners under section 141;

"the register" means the register of vehicles established and maintained by the Commissioners under section 131 and "registered" and other cognate words shall be construed accordingly;

"special purpose vehicle" means a vehicle which is designed, constructed or adapted solely or mainly for a purpose other than the carriage of persons or goods;

"vehicle" means a mechanically propelled vehicle.

Registration of vehicles by Revenue Commissioners.

131.—(1) ( a ) The Commissioners shall establish and maintain a register of all vehicles in the State (in this Chapter referred to subsequently as "the register").

( b ) The Commissioners may enter in the register such particulars in relation to a vehicle and its ownership and connected matters as they consider appropriate.

( c ) The Commissioners may amend an entry in or delete an entry from the register.

( d ) The register may be established and maintained in a form that is not legible if it is capable of being converted into a legible form.

( 2 ) ( a ) The prescribed particulars of each vehicle that, on or after the 1st day of January, 1993, is not a registered vehicle shall be declared to the Commissioners for the purposes of registration.

( b ) A vehicle in relation to which the prescribed particulars have been furnished under this subsection shall be deemed to be a registered vehicle.

( 3 ) ( a ) Where a registered vehicle is converted, the prescribed particulars shall be declared to the Commissioners for the purpose of the entry in the register of particulars in relation to the conversion and the Commissioners may enter in the register such particulars in relation to the conversion as they consider appropriate.

( b ) The owner of a vehicle which has been converted shall deliver to the Commissioners with the declaration under paragraph (a) in relation to the conversion the certificate in relation to the vehicle and the Commissioners shall enter on the certificate such particulars in relation to the conversion as they consider appropriate.

(4) A person shall not have in his possession or charge after the 1st day of January, 1993, an unregistered vehicle or a converted vehicle as respects which the prescribed particulars in relation to the conversion have not been declared to the Commissioners unless the person is an authorised person or the vehicle is the subject of an exemption under section 135 in force for the time being.

(5) The Commissioners shall assign in the prescribed manner a unique identification mark to each vehicle entered in the register and shall issue to the owner of the vehicle a certificate of registration in the prescribed form in respect of each such vehicle.

( 6 ) ( a ) There shall be displayed in the prescribed manner on each registered vehicle in the State the identification mark assigned to it under subsection (5).

( b ) An identification mark assigned to a vehicle under subsection (5) shall not be displayed on any other vehicle.

( c ) A mark which purports to be but is not an identification mark assigned to a vehicle under subsection (5) shall not be displayed on a vehicle.

( d ) A person (other than an authorised person) shall not have in his possession or charge a vehicle in respect of which there is a contravention of paragraph (a).

( e ) A person shall not have in his possession or charge a vehicle in respect of which there is a contravention of paragraph (b) or (c).

(7) The Minister for the Environment shall have access to and may inspect and examine the register and—

( a ) may take, or be supplied by the Commissioners with, such information from the register as he considers appropriate for the purpose of his functions, and

( b ) take, or be supplied by the Commissioners with, copies of the register or of such extracts from the register as he considers appropriate for the purpose of his functions.

(8) The Roads Act, 1920, is hereby amended, with effect from the 1st day of January, 1993, by the substitution of the following section for section 6:

"6. (1) On the first application to a licensing authority for a licence in respect of a vehicle under section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952 , the authority shall not issue the licence unless and until the authority is satisfied that the vehicle has been registered in the register maintained under section 131 of the Finance Act, 1992 .

(2) For the purposes of this section, a certificate of registration under the said section 131 or such other (if any) evidence as the Minister for the Environment may, with the consent of the Minister for Finance, direct shall be sufficient evidence of the registration of the vehicle in the register aforesaid.".

Charge of excise duty.

132.—(1) In addition to any other duty which may be chargeable, subject to the provisions of this Chapter and any regulations thereunder, with effect on and from the 1st day of January, 1993, a duty of excise, to be called vehicle registration tax, shall be charged, levied and paid at whichever of such rates as may stand specified for the time being by an Act of the Oireachtas is appropriate on—

( a ) the registration of a vehicle, and

( b ) a declaration under section 131 (3).

(2) Vehicle registration tax shall become due and be paid at the time of the registration of a vehicle or the making of the declaration aforesaid, as may be appropriate.

Chargeable value.

133.—(1) Where the rate of vehicle registration tax charged in relation to a category A vehicle or a category B vehicle is calculated by reference to the value of the vehicle, that value shall be taken to be the open market selling price of the vehicle at the time of the charging of the tax thereon.

( 2 ) ( a ) For a new vehicle on sale in the State which is supplied by a manufacturer or sole wholesale distributor, such manufacturer or distributor shall declare to the Commissioners in the prescribed manner the price, inclusive of vehicle registration tax, which, in his opinion, a vehicle of that model and specification, including any enhancements or accessories fitted or attached thereto or supplied therewith by such manufacturer or distributor, might reasonably be expected to fetch on a first arm's length sale thereof in the open market in the State by retail.

( b ) A price standing declared for the time being to the Commissioners in accordance with this subsection in relation to a new vehicle shall be deemed to be the open market selling price of each new vehicle of that model and specification:

Provided that where, at the time of its registration, a new vehicle has fitted or attached to it enhancements or accessories which have not been taken into account in the price declared under this subsection, an amount equal to the declared price, increased by the addition thereto of such amount as, in the opinion of the Commissioners, is the retail value of such enhancements or accessories, shall be deemed to be the open market selling price of the vehicle.

( c ) Notwithstanding the provisions of paragraph (b), where a price is declared for a vehicle in accordance with this subsection which, in the opinion of the Commissioners, is higher or lower than the open market selling price at which a vehicle of a similar type and character is being offered for sale in the State at the time of such declaration, the open market selling price may be determined by the Commissioners for the purposes of this section.

(3) In this section—

"new vehicle" means a vehicle which is less than 3 months old when reckoned from its first entry into service or which has travelled less than 3,000 kilometres;

"open market selling price" means the price, inclusive of vehicle registration tax, which, in the opinion of the Commissioners, a vehicle, including any enhancements or accessories fitted or attached thereto or sold therewith, might reasonably be expected to fetch on a first arm's length sale thereof in the open market in the State by retail, subject to the provisions of subsection (2).

Permanent reliefs.

134.—(1) A vehicle may, subject to any conditions, restrictions or limitations prescribed by the Minister by regulations made by him under section 141 be registered without payment of vehicle registration tax if the vehicle is—

( a ) the personal property of a private individual and is being brought permanently into the State by the individual when he is transferring his normal residence from a place outside the State to a place in the State,

( b ) being brought permanently into the State as part of the capital goods and other equipment of a business undertaking which definitively ceases its activity outside the State and moves to the State in order to carry on a similar activity there,

( c ) the personal property of a deceased person and is being brought permanently into the State by a person resident in the State, or a person or body of persons established in the State and engaged in a non-profit making activity, who either acquired by inheritance the ownership or beneficial ownership of such vehicle or is the personal representative resident in the State of the deceased person,

( d ) given as a gift, in token of friendship or good will by an official body, public authority or group carrying on an activity in the public service or interest, which is located outside the State, to an official body, public authority or group carrying on an activity in the public service or interest, which is located in the State and is approved by the Commissioners for the purposes of this paragraph,

( e ) for official use by an institution of the European Communities,

( f ) for the personal use of officials or other members of the staff of an institution of the European Communities who transfer their residence to the State to take up a position there with an institution of the European Communities,

( g ) supplied under diplomatic, consular or similar arrangements by virtue of the Diplomatic Relations and Immunities Acts, 1967 and 1976, and orders made thereunder.

(2) Effect may be given to the provisions of subsection (1) by means of a repayment of vehicle registration tax subject to any conditions the Commissioners see fit to impose.

(3) The reliefs allowed under the Disabled Drivers (Tax Concessions) Regulations, 1989 ( S.I. No. 340 of 1989 ), shall apply with any necessary modifications to vehicle registration tax.

(4) A vehicle may be registered, subject to such conditions, limitations and restrictions (if any) as the Commissioners may impose, without payment of vehicle registration tax and with the repayment of any such tax paid, where the Commissioners are satisfied that such vehicle is for use—

(i) in the establishment or maintenance of an international air service using or involving the use of an airport in the State,

(ii) in the establishment or maintenance of radio or meteorological services or other aids to air navigation ancillary to any such international air service, or

(iii) for experimental purposes in connection with the establishment or maintenance of any such international air service.

(5) Whenever the Minister so thinks proper, he may authorise the Commissioners to register a vehicle, subject to such conditions, limitations or restrictions (if any) as they may impose, either without payment of vehicle registration tax or on payment of the tax at less than the rate ordinarily chargeable or, where the said tax has been paid, to repay the tax in whole or in part.

Temporary exemption from registration.

135.—A vehicle which is temporarily brought into the State may be exempted by the Commissioners from the requirement to be registered, in such manner and subject to such conditions, restrictions and limitations as the Minister may prescribe by regulations made by him under section 141 if the vehicle is—

( a ) brought into the State by a person established outside the State for his private or business use,

( b ) brought into the State solely for the purpose of a competition, exhibition, show, demonstration, or similar purpose and is not intended to be sold or offered for sale in the State and is intended to be taken out of the State on the fulfilment of such purpose, or

( c ) designed or specially adapted as professional equipment brought into the State by a person established outside the State for use exclusively by such person or under his personal supervision.

Authorisation of manufacturers, distributors and dealers and periodic payment of duty.

136.—(1) Notwithstanding the provisions of section 131, a person may be authorised by the Commissioners to manufacture, distribute, deal in, deliver, store, repair or modify unregistered vehicles and to convert registered vehicles.

(2) A person shall not be authorised under this section unless he appears to the Commissioners to satisfy such requirements as they may think fit to impose.

(3) The Commissioners may, at any time for reasonable cause (which shall be stated to the authorised person) and following such notice as is reasonable in the circumstances, revoke an authorisation made under this section or vary its terms.

(4) An authorised person shall not deliver, send out or otherwise make available for use an unregistered vehicle other than to another authorised person.

(5) An authorised person shall not deliver, send out or otherwise make available for use a vehicle which, but for compliance with this subsection, would be unregistered, to a person who is not an authorised person without first—

( a ) declaring the prescribed details of the vehicle to the Commissioners in accordance with section 131, and

( b ) paying vehicle registration tax in respect of the registration of the vehicle.

(6) For the purposes of subsection (5) the Commissioners may, subject to compliance with such conditions for securing payment as they may think fit to impose, permit payment of vehicle registration tax to be deferred to a day not later than the 15th day of the month following that in which the said tax is charged.

(7) Notwithstanding the provisions of subsections (4) and (5), the Commissioners may, subject to compliance with such conditions as they may think fit to impose, allow an unregistered vehicle to be delivered by an authorised person for temporary display or exhibition.

(8) No provision of this section shall be deemed to permit the use of an unregistered vehicle on a public road.

Accountability for unregistered vehicles and converted vehicles.

137.—An authorised person shall account to the satisfaction of the Commissioners in the prescribed manner for all unregistered vehicles and converted vehicles received by him or manufactured by him.

Appeals.

138.—(1) Any person who has paid or who is liable to pay vehicle registration tax may appeal to the Commissioners against the amount of tax charged.

(2) An appeal under this section (referred to subsequently as "an appeal") shall be in writing and shall set forth in detail the grounds of appeal.

(3) An appeal shall be lodged with the Commissioners within a period of 21 days from the date on which vehicle registration tax became due.

(4) An appeal shall be determined by the Commissioners within a period of 21 days from its lodgement with the Commissioners and, for that purpose, the vehicle concerned shall be produced to the Commissioners for inspection, if so required.

(5) The Commissioners shall notify an appellant in writing of the result of their determination of his appeal.

(6) Where the Commissioners determine on appeal that the amount due in respect of vehicle registration tax is less than the amount paid, they shall repay the amount overpaid to the appellant concerned.

(7) Where the Commissioners determine on appeal that the amount due in respect of vehicle registration tax is greater than the amount paid, the appellant concerned shall pay the amount underpaid within the prescribed time limit.

Offences and penalties.

139.—(1) It shall be an offence under this subsection for a person, in respect of a vehicle in the State—

( a ) to make a declaration under section 131 which is false or in any material respect misleading or to allow any other person to make such a declaration on his behalf,

( b ) to be in possession of a vehicle on which an identification mark referred to in section 131 (6) is not displayed or is not displayed in the prescribed manner,

( c ) to display an identification mark on the vehicle in contravention of section 131 (6),

( d ) to destroy, mutilate, deface, alter, amend or in any other way interfere with a certificate without authorisation from the Commissioners,

( e ) to fail to make a declaration under section 133 (2) (a), or to make it in the prescribed manner, when required to do so by the Commissioners, or

( f ) to contravene or fail to comply, whether by act or omission, with any other provision of this Chapter or of regulations under section 141.

(2) Without prejudice to any other penalty to which he may be liable, any person guilty of an offence under subsection (1) shall be liable on summary conviction to a penalty under the law relating to excise of £1,000.

(3) It shall be an offence under this subsection for a person, in respect of a vehicle in the State—

( a ) to be in possession of the vehicle if it is unregistered unless he is an authorised person or the vehicle is the subject of an exemption under section 135 for the time being in force and the vehicle is being used in accordance with any conditions, restrictions or limitations referred to in section 135,

( b ) if the vehicle is the subject of an exemption under section 134, to be in possession of the vehicle other than in accordance with any conditions, restrictions or limitations referred to in section 134,

( c ) to issue or to be in possession of a document which purports to be, but is not, a certificate,

( d ) to fail to pay any vehicle registration tax due by him,

( e ) if the vehicle is an unregistered vehicle or a converted vehicle, to fail to account for it in accordance with section 137, or

( f ) if the vehicle is an unregistered vehicle or a converted vehicle in relation to which particulars of the conversion have not been declared in accordance with section 131 or a converted vehicle in relation to which particulars of the conversion have been so declared but vehicle registration tax has not been paid on the declaration, to deliver the vehicle to a person other than an authorised person.

(4) Without prejudice to any other penalty to which he may be liable, any person guilty of an offence under subsection (3) shall be liable on summary conviction to a penalty under the law relating to excise of £1,000.

(5) A vehicle in respect of which an offence under subsection (3) was committed shall be liable to forfeiture.

Evidence.

140.—(1) In any proceedings for an offence under this Chapter in respect of failure to pay any amount of vehicle registration tax, it shall be presumed until the contrary is shown that the vehicle registration tax in respect of the vehicle to which the charge relates has not been paid.

(2) A certificate or a document purporting to be signed by an officer of the Commissioners and to contain particulars extracted from the register or a document purporting to be signed by an officer of the Commissioners and to contain particulars extracted from any other records relating to vehicles shall, without proof of the signature of such officer, or that he was an officer of the Commissioners, be evidence, until the contrary is shown, of the particulars aforesaid stated in the certificate or document.

Regulations.

141.—(1) ( a ) The Commissioners may make such regulations as they consider necessary or expedient for the purpose of managing the registration of vehicles and managing, securing and collecting vehicle registration tax.

( b ) The Commissioners shall not make regulations for a purpose specified in subsection (3).

(2) In particular, but without prejudice to the generality of subsection (1), regulations under subsection (1) may—

( a ) prescribe the method of establishment and maintenance of the register,

( b ) prescribe the particulars to be declared to the Commissioners under section 131,

( c ) prescribe the manner in which a declaration under section 131 shall be made,

( d ) prescribe the form and contents of certificates,

( e ) prescribe the manner of assigning identification marks under section 131 (5),

( f ) prescribe the size, shape and character of the identification marks aforesaid and the manner in which they are to be rendered easily distinguishable, whether by night or by day,

( g ) require that specified particulars shall be marked on a vehicle and shall be accessible and legible,

( h ) prescribe the method of charging, securing and collecting vehicle registration tax,

( i ) make provision in relation to the authorisation of persons under section 136,

( j ) make provision in relation to the manufacture, storage, conditions of use and disposal of unregistered vehicles and of converted vehicles in respect of which any vehicle registration tax has not been paid,

( k ) require an authorised person to keep in a specified manner, and to preserve for a specified period, specified records and accounts relating to the receipt, manufacture, delivery and sale of unregistered or converted vehicles and to allow an officer of the Commissioners, duly authorised by them in that behalf, on production of his authorisation if so requested by any person affected, to inspect and take copies of or extracts from such records and accounts and any other books or documents kept by him relating to any of the matters aforesaid,

( l ) require an authorised person to make proper entry with the proper officer of the Commissioners of all premises intended to be used by him in the carrying on of his business and to provide for the method of entry with the said officer,

( m ) prescribe the form and contents of declarations under section 133 and the times at which they shall be made, and

( n ) prescribe the manner of accounting for vehicles under section 137.

(3) The Minister may make such regulations as he considers necessary or expedient for the purpose of giving full effect to sections 134 and 135.

(4) In particular, but without prejudice to the generality of subsection (3) regulations under subsection (3) may—

( a ) prescribe the criteria for eligibility for the remission or repayment of vehicle registration tax,

( b ) prescribe the amount of vehicle registration tax that may be remitted or repaid in respect of vehicles or specified vehicles or classes of vehicles,

( c ) specify the time limits within which applications to the Commissioners for remission or repayment of vehicle registration tax under section 134 shall be made,

( d ) prohibit the grant of such remission or repayment as aforesaid to a person in respect of vehicles in excess of a specified number,

( e ) specify the periods during which a vehicle, in respect of which vehicle registration tax has been remitted or repaid, may not be disposed of, hired out or lent, and

( f ) provide for such other matters as the Minister considers necessary or expedient for the purposes of giving full effect to this subsection.

(5) Regulations under this Chapter shall be laid before Dáil Éireann as soon as may be after they are made and, if a resolution annulling the regulations is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulations have been laid before it, the regulations shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Powers of officers.

142.—(1) An officer of the Commissioners, duly authorised by the Commissioners in that behalf, may, on production of his authorisation if so requested by a person affected, at all reasonable times, enter premises in which the manufacture, distribution, storage, repair, modification, importation, dealing, delivery or disposal of vehicles is reasonably believed by the officer to be carried on or in which books, accounts or other documents or records relating to such activities are reasonably believed by such officer to be stored or kept and may there—

( a ) require any person to produce all books, accounts or other documents or records relating to such activities and, in the case of such information in a non-legible form (including such information in a computer), to produce it in a legible form or to reproduce it in a permanent legible form,

( b ) make such search and investigation as the officer shall think proper,

( c ) inspect and take copies of or extracts from any such books, accounts or other documents or records there found which are reasonably believed by the officer to relate to such activities as aforesaid, and

( d ) remove and retain the said books, accounts or other documents or records for such period as may be reasonable for their further examination,

and such person shall provide to such officer all facilities and assistance necessary for the exercise by such officer of any power conferred on him by this subsection.

( 2 ) ( a ) Any person in charge of a moving vehicle shall, at the request of an officer of the Commissioners in uniform, stop the vehicle.

( b ) Any person in charge of a vehicle shall, at the request of an officer of the Commissioners, duly authorised by them in that behalf and on production of his authorisation if so requested by any person affected—

(i) allow the vehicle to be examined by the officer,

(ii) furnish, within such time and in such form and manner as may be specified by the officer, all such information in relation to the vehicle as may reasonably be required by the officer and is in the possession or procurement of the person, and

(iii) within such time and in such manner as may be specified by the officer, produce and permit his inspection of and the taking of copies of or extracts from all such books and documents relating to the vehicle as are reasonably required by the officer and are in the possession, custody or procurement of such person.

(3) Whenever an officer of the Commissioners reasonably suspects that—

( a ) a vehicle has not been registered, or

( b ) a vehicle has been converted and a declaration in relation to the conversion has not been made under section 131, or

( c ) any vehicle registration tax in respect of a vehicle has not been paid,

the officer, if duly authorised by the Commissioners in that behalf and on production of his authorisation if so requested by any person affected, may detain the vehicle until such examination, enquiries or investigations as may be deemed necessary by the officer, or by another officer of the Commissioners, have been made for the purpose of determining to the satisfaction of either such officer whether or not the vehicle has been registered, the declaration aforesaid has been made or the vehicle registration tax has been paid, as may be appropriate.

(4) When a determination referred to in subsection (3) has been made in respect of a vehicle, or upon the expiry of a period of one month from the date on which the vehicle was detained under the said subsection, whichever is the earlier, the vehicle shall be seized as liable to forfeiture under the statutes which relate to duties of excise and the management thereof and any instrument relating to the duties of excise made under statute or released.

Transitional provisions.

143.—(1) A vehicle registered by a licensing authority for use in a public place before the 1st day of January, 1993, shall be deemed to be a registered vehicle.

(2) Any vehicle on which motor vehicle excise duty has been paid, secured, relieved or remitted under the Order of 1979 or the Order of 1984 before the 1st day of January, 1993, and which is required to be licensed under the Act of 1952 for use in a public place but which has not been so licensed before that date shall be entered in the register without payment of the duty imposed by section 132.

Application of enactments.

144.—The provisions of the statutes which relate to the duties of excise and the management thereof and of any instrument relating to duties of excise made under statute, and not otherwise applied by this Chapter, shall, with any necessary modifications, apply in relation to registration, vehicle registration tax and declarations under section 131 (3) as they apply to duties of excise.

CHAPTER V Miscellaneous

Interpretation (Chapter V).

145.—In this Chapter "the Order of 1975" means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 ( S.I. No. 307 of 1975 ).

Tobacco products.

146.—(1) In this section and in the Fourth Schedule "cigarettes", "cigars", "sweetened pipe tobacco", "hard pressed tobacco", "other pipe tobacco", "smoking tobacco", "chewing tobacco" and "tobacco products" have the same meanings as they have in the Finance (Excise Duty on Tobacco Products) Act, 1977 , as amended by the Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979 ( S.I. No. 296 of 1979 ), and the Finance Act, 1988 .

(2) The duty of excise on tobacco products imposed by section 2 of the Finance (Excise Duty on Tobacco Products) Act, 1977 , shall, in lieu of the several rates specified in Part II of the Third Schedule to the Finance Act, 1991 , be charged, levied and paid, as on and from the 30th day of January, 1992, at the several rates specified in the Fourth Schedule.

Cider and perry.

147.—(1) In the Fifth Schedule-

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

"% vol" means alcoholic strength by volume.

(2) The duty of excise on cider and perry imposed by paragraph 8 (2) of the Order of 1975, shall be charged, levied and paid, as on and from the 30th day of January, 1992, at the several rates specified in the Fifth Schedule in lieu of the several rates specified in the Fourth Schedule to the Finance Act, 1989 .

Televisions.

148.—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 not be charged or levied on or after the 30th day of January, 1992.

Video players.

149.—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 not be charged or levied on or after the 30th day of January, 1992.

Hydrocarbons.

150.—(1) The duty of excise on mineral hydrocarbon light oil imposed by paragraph 11 (1) of the Order of 1975 shall, in lieu of the rate specified in section 40 (1) of the Finance Act, 1989 , be charged, levied and paid, as on and from the 1st day of May, 1992, at the rate of £28.70 per hectolitre.

(2) For the purposes of the rebate of duty on mineral hydrocarbon light oil provided for in section 56 (3) of the Finance Act, 1988 , section 89 of the Finance Act, 1990 , shall apply as on and from the 1st day of May, 1992, as if the reference therein to section 40 (1) of the Finance Act, 1989 , were instead a reference to subsection (1).

(3) With effect from the 1st day of July, 1992, section 42 (2) of the Finance Act, 1976 , is hereby amended by the substitution of "£0.085" for "£0.08" (inserted by the Finance Act, 1983 ) and, accordingly, paragraph 5 (10) (which provides that the said £0.08 is to have effect as if there were substituted "£0. 17") of the Imposition of Duties (No. 285) (Excise Duties) Order, 1987 ( S.I. No. 19 of 1987 ), shall cease to have effect from that date.

Motor vehicles.

151.—(1) In this section—

"the former category B motor vehicles" means the motor vehicles which, by virtue of subsection (2), cease to be category B motor vehicles for the purposes of the Order of 1979;

"the Order of 1979" means the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 ( S.I. No. 57 of 1979 );

"the Order of 1984" means the Imposition of Duties (No. 272) (Excise Duties on Motor Vehicles) Order, 1984 ( S.I. No. 353 of 1984 ).

(2) The Order of 1979 is hereby amended in paragraph 3 a—

( a ) by the substitution of the following for the definition of "category B motor vehicles":

"'category B motor vehicles' means motor vehicles (excluding category A motor vehicles, ambulances, hearses, omnibuses and special purpose vehicles) which are of not more than 3 tonnes unladen weight and which have a roofed area to the rear of the driver's seat, the floor of which is less than 2 metres in length when measured in such manner as may be approved by the Revenue Commissioners:

Provided that motor vehicles—

( a ) on which, but for this proviso, the duty imposed by paragraph 4 (1) of this Order would fall to be charged after the passing of the Finance Act, 1992 ,

( b ) which are of not more than 1.3 tonnes unladen weight, and

( c ) of which the roofed area to the rear of the driver's seat has a load volume of more than 2 cubic metres when measured in such manner as may be approved by the Revenue Commissioners,

shall not be regarded as category B motor vehicles;",

( b ) by the substitution of "other motor vehicles" for "motor vehicles referred to in paragraph 4 (4) of this Order" in the definition of "manufacture", and

( c ) by the substitution of "a motor vehicle other than a category A motor vehicle" for "a category B motor vehicle" in the definition of "motor vehicle".

(3) The duty of excise imposed by paragraph 4 (1) of the Order of 1979 shall be charged, levied and paid, as on and from the 30th day of January, 1992—

( a ) at the rate of an amount equal to 20 per cent. of the chargeable value in so far as it is chargeable on certain category A motor vehicles (being category A motor vehicles which have engines of a cylinder capacity less than or equal to 2012 cubic centimetres) in lieu of the rate specified in section 76 (ii) of the Finance Act, 1986 ,

( b ) at the rate of an amount equal to 12.5 per cent. of the chargeable value in so far as it is chargeable on category B motor vehicles in lieu of the rate specified in paragraph 5 of the Order of 1984, and

( c ) at the rate of an amount equal to nil per cent. of the chargeable value in so far as it is chargeable on motor vehicles other than category A motor vehicles or category B motor vehicles in lieu of the rate specified in respect of the former category B motor vehicles in paragraph 5 of the Order of 1984.

Termination of excise duties on table waters and table waters manufacturer's licence.

152.—(1) The duty of excise on table waters imposed by subparagraph (2) (inserted by section 37 (1) of the Finance Act, 1981 ) of paragraph 9 of the Order of 1975 shall not be charged or levied on or after the 1st day of November, 1992.

(2) With effect as on and from the 1st day of November, 1992, section 9 of the Finance Act, 1916, shall, in so far as it relates to table waters, cease to have effect.

Termination of excise duty on match manufacturer's licence.

153.—With effect as on and from the 1st day of June, 1992, the provisions of section 3 (2) of the Finance (New Duties) Act, 1916 shall cease to have effect.

Increase of duties on certain intoxicating liquor licences.

154.—The duties of excise imposed—

( a ) by section 43 of the Finance (1909-10) Act, 1910, on the licences for the manufacture or sale of intoxicating liquor specified in the First Schedule to that Act, other than a retailer on-licence to be taken out annually by retailers of spirits, and

( b ) by section 10 (3) of the Finance Act, 1940 , on a licence to be taken out annually by every person who makes cider or perry for sale,

shall, as respects any such licence granted on or after the 1st day of July, 1992, in respect of periods expiring on days subsequent to the 30th day of September, 1992, be charged, levied and paid on each such licence at the rate specified in column (3) of Part I of the Sixth Schedule at the reference number at which that licence is mentioned in column (2) of that Schedule in lieu of the rate specified in Part I of the Seventh Schedule to the Finance Act, 1980 (as respects manufacturers' licences to be taken out annually by a distiller of spirits or a brewer of beer for sale), and Part I of the Sixth Schedule to the Finance Act, 1989 (as respects any other such licence); and no reduction, remission, abatement or repayment shall be allowed or made in respect of any such licence but any duty paid in error on any such licence may be repaid.

Spirits retailers' on licences.

155.—(1) In this section—

"annual turnover" means the amount on which value-added tax—

( a ) is chargeable by virtue of section 10 of the Value-Added Tax Act, 1972 , or

( b ) would be chargeable if the exclusions contained in section 8 (3) of the Value-Added Tax Act, 1972 , did not apply,

in respect of a continuous period of not less than 12 months ending on the same date each year but only where the period ends not earlier than the 31st day of October prior to the beginning of the year for which the licence has been applied, but does not include turnover arising from an excluded business activity during the same period;

"excluded business activity" means business activity which is conducted in a part of the licensed premises and which is not related to the sale of alcoholic beverages:

Provided that the provision of entertainment or the sale of snack foods, beverages or meals for consumption on the premises or tobacco products shall be regarded as so related except that, in the case of a licence granted in respect of a hotel currently registered in the register of hotels maintained and kept by Bord Fáilte Éireann under the Tourist Traffic Acts, 1939 to 1987, the provision of meals in a dining room separate from any area with a bar wholly or primarily designed for the sale of alcoholic beverages shall not be regarded as so related.

( 2 ) ( a ) The duties of excise imposed by section 43 of the Finance (1909-10) Act, 1910, on spirits retailers' on-licences shall, as respects any such licence granted on or after the 1st day of October, 1992, be charged, levied and paid on each such licence at the rate specified in paragraph (b), in lieu of the appropriate rate specified in Part I of the Sixth Schedule to the Finance Act, 1989 , and, subject to subsection (3), no reduction, remission, abatement or repayment shall be allowed or made in respect of any such licence but any duty paid in error on any such licence may be repaid.

( b ) The rates of the duty imposed by paragraph (a) shall be as follows—

(i) where a licence is granted upon renewal under section 9 of the Intoxicating Liquor Act, 1988 , a rate of duty of £200;

(ii) where a licence is granted under section 7 of the Excise Act, 1835, a rate of duty of £200;

(iii) where a licence is granted in any other case, the appropriate rate of duty mentioned in column (2) of the Table to this subsection in respect of the level of the annual turnover of the licensed premises which is mentioned opposite that rate in column (1) of that Table:

Provided that—

(I) where, in respect of premises which are currently or which were previously licensed, a licence is granted where annual turnover is not yet established under subsection (1), a rate of duty equal to the sum paid when the premises was last licensed, subject to a minimum rate of duty of £200;

(II) where a licence is granted, in respect of premises not previously licensed, a rate of duty of £200.

( c ) Evidence of turnover of excluded business activity during the same period shall, subject to the satisfaction of the Revenue Commissioners, be provided by means of an annual audited account covering the same period as that used in respect of annual turnover.

TABLE

Level of Annual Turnover (1)	Rates of Duty (2)
Under £150,000	£200
£150,000 but less than £300,000	£400
£300,000 but less than £500,000	£900
£500,000 but less than £750,000	£1,400
£750,000 but less than £1,000,000	£2,000
£1,000,000 or more	£3,000

(3) Where, following payment of the duty, there is a change in the annual turnover by virtue of any provision in the Value-Added Tax Act, 1972 , and by virtue of that change it has been established that—

( a ) the amount of excise duty paid on the grant of the licence is in excess of the amount properly payable, that excess amount shall be refunded by the Revenue Commissioners;

( b ) the amount of excise duty paid on the grant of the licence is less than the amount properly payable, the amount of the shortfall shall be paid before the licence is renewable and the licence shall not be renewable unless so paid.

(4) Every person who fails to establish the level of annual turnover for the purpose of subsection (2) or neglects to pay the proper sum payable by him in respect of the duty imposed by this section shall be guilty of an offence under this section and shall be liable on summary conviction to an excise penalty of £1,000.

(5) Section 50 of the Finance (1909-10) Act, 1910, as amended by section 69 of the Finance Act, 1983 , is hereby amended by the substitution in subsection (3) of "£1,000" for "£500" and the said subsection (3), as so amended, is set out in the Table to this subsection.

TABLE

(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 £1,000.

(6) The enactments, specified in Part II of the Third Schedule to this Act are hereby repealed to the extent specified in column (3) of that Schedule.

Amendment of section 49 (grant of licences and date of expiration of licences) of Finance (1909-10) Act, 1910.

156.—Section 49 of the Finance (1909-10) Act, 1910, is hereby amended—

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

"Provided that, notwithstanding anything to the contrary in any other enactment, in particular, section 5 of the Licensing (Ireland) Act, 1833, section 7 of the Excise Act, 1835, the Licensing (Ireland) Act, 1902, sections 13 and 14 of the Intoxicating Liquor Act, 1960 , section 4 of the Courts (No. 2) Act, 1986 and section 9 of the Intoxicating Liquor Act, 1988 , any licence commencing on or after the 1st day of October, 1992, which is a spirits retailer's on-licence, a spirits retailer's off-licence or a wine retailer's on-licence as is specified in the First Schedule to this Act shall not be granted by the Commissioners unless a tax clearance certificate in relation to that licence has been issued in accordance with section 242 of the Finance Act, 1992 . ",

( b ) by the insertion after subsection (1) of the following subsection:

"(1A) ( a ) Where an application in accordance with section 242 of the Finance Act, 1992 , for a tax clearance certificate in respect of a licence to which the proviso to subsection (1) of this section has been refused and an appeal against such refusal has been made and accepted in accordance with subsection (6) of the said section 242 and the licence could, but for the provisions relating to a tax clearance certificate, have been issued, then—

(i) in a case where a licence has been granted in respect of the previous licensing year, such licence may continue in force beyond its latest expiry date pending the final determination of the appeal, and

(ii) in a case where a licence has not been granted in respect of the previous licensing year, a licence may be issued temporarily and remain in force pending the final determination of the appeal:

Provided that the amount of the duty that would be payable on the granting of the licence is duly deposited with the proper officer of Customs and Excise.

( b ) Every licence issued in accordance with paragraph (a) (ii) of this subsection shall, while it remains in force, be a licence within the meaning of this section.

( c ) On the final determination of an appeal referred to in paragraph (a) of this subsection—

(i) in a case where the determination is to the effect that the application for a tax clearance certificate in relation to a licence is an acceptable application and where the tax clearance certificate has been issued, the duty deposited shall be set against the appropriate duty payable on the grant of the licence, and

(ii) in a case where the determination is to the effect that the refusal of the application for a tax clearance certificate in relation to a licence is a valid refusal, the licence continued in force or issued temporarily under this subsection shall expire not later than seven days after the determination of such appeal, and the amount of any duty deposited in excess of the proportion of that duty attributable to the period when the licence was temporarily in force shall be repaid.".

Increase of duties on public dancing licence, occasional licence, special exemption order and authorisation to a club.

157.—(1) Section 78 (2) (as amended by section 44 (1) of the Finance Act, 1989 ) of the Finance Act, 1980 , is hereby amended by the substitution for "£15" and "£100" of "£20" and "£125", respectively, and the said subsection (2), as so amended, is set out in the Table to this subsection.

TABLE

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

in case the licence is for a defined period not exceeding one month	£20
in any other case	£125

(2) Section 78 of the Finance Act, 1980 , is hereby amended by the substitution in subsections (3), (4) and (5) for "£70" (inserted by section 44 (2) of the Finance Act, 1989 ) of "£90" and the said subsections (3), (4) and (5), as so amended, are set out in the Table to this subsection.

TABLE

(3) There shall be charged, levied and paid on every occasional licence granted under section 11 or 13 of the Intoxicating Liquor Act, 1962 , a duty of excise of £90.

(4) There shall be charged, levied and paid on every special exemption order granted under section 5 of the Intoxicating Liquor Act, 1927 , or section 13 of the Intoxicating Liquor Act, 1962 , a duty of excise of £90.

(5) There shall be charged, levied and paid on every authorisation granted to a club under section 21 of the Intoxicating Liquor (General) Act, 1924 , or section 14 of the Intoxicating Liquor Act, 1962 , a duty of excise of £90.

(3) This section shall have effect in relation to every licence, order and authorisation to which this section relates and which is granted on or after the date of the passing of this Act in respect of dates subsequent to the 1st day of August, 1992.

Increase of duties on hydrocarbon vendors' licences.

158.—(1) The duty of excise imposed by paragraph 12 (12) of the Order of 1975 on a licence to be taken out annually by a person who sells or delivers hydrocarbon oil chargeable with the duty imposed by paragraph 12 (1) of the said Order shall be charged, levied and paid, as on and from the 1st day of July, 1992, at the rate of £30 in lieu of the rate specified in section 45 (1) of the Finance Act, 1989 .

(2) The duty of excise imposed by section 42 (4) (a) of the Finance Act, 1976 , on a licence to be taken out annually by a person who sells or delivers motor vehicle gas on any premises shall be charged, levied and paid as on and from the 1st day of July, 1992, at the rate of £30 in lieu of the rate specified in section 45 (3) (b) of the Finance Act, 1989 .

(3) The duty of excise imposed by section 45 (3) (b) of the Finance Act, 1989 , on a licence to be taken out annually by a person who sells or delivers on any premises for use for combustion in the engine of a motor vehicle any hydrocarbon light oil shall be charged, levied and paid as on and from the 1st day of July, 1992, at the rate of £30 in lieu of the rate specified in the said section 45 (3) (b).

(4) As on and from the 1st day of July, 1992, the provisions of section 45 (4) of the Finance Act, 1989 , shall apply and have effect as if the reference therein to subsection (1) and the references therein to subsection (3) were, respectively, references to the said subsection (1) as amended by subsection (1) and the said subsection (3) as amended by subsection (3) and as if the reference to £20 in the said section 45 (4) were a reference to £30.

Increase of duties on registration of firearms dealers.

159.—(1) The duty of excise on the registration of a person in a register of firearms dealers imposed by subsection (1) (as amended by section 46 (1) of the Finance Act, 1989 ) of section 41 of the Finance Act, 1925 , shall be charged, levied and paid at the rate of £60 in lieu of the rate specified in the said subsection (1).

(2) The duty of excise on the registration of a person in a register of firearms dealers imposed by subsection (3) (inserted by section 52 (c) of the Finance Act, 1971 ) of section 41 of the Finance Act, 1925 , shall be charged, levied and paid at the rate of £10 in lieu of the rate specified for the purposes of the said subsection (3) in section 46 (2) of the Finance Act, 1989 .

Increase of duties on certain other licences, etc.

160.—(1) 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, 1992, be charged, levied and paid at the rates specified in Part II of the Sixth Schedule in lieu of the rates specified in Part II of the Sixth Schedule to the Finance Act, 1989 .

(2) 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 1st day of June, 1992, at the rates specified in Part III of the Sixth Schedule in lieu of the rates specified in Part III of the Sixth Schedule to the Finance Act, 1989 .

( 3 ) ( a ) Section 74 (1) of the Finance Act, 1980 , shall, as respects the grant of gaming machine licences on or after the 1st day of June, 1992, be amended by the substitution for "£80", "£160", "£240" and "£320" (inserted by section 47 (3) (a) of the Finance Act, 1989 ) of "£100", "£200", "£300" and "£400", respectively.

( b ) Paragraph (aa) (inserted by section 74 (2) of the Finance Act, 1980 ) of subsection (7) of section 43 of the Finance Act, 1975 , shall, as respects the grant of gaming machine licences on or after the 1st day of June, 1992, be amended by the substitution for "£50", "£100", "£150" and "£200" (inserted by section 47 (3) (b) of the Finance Act, 1989 ) of "£60", "£120", "£180" and "£240", respectively.

(4) The duty of excise in respect of a licence, permit or certificate, as the case may be, mentioned in column (2) of Part IV of the Sixth Schedule at any reference number imposed by the enactment specified in column (3) of the said Part IV at that reference number shall be charged, levied and paid, as on and from the date specified in column (4) of the said Part IV at that reference number at the rate specified in column (5) of the said Part IV at that reference number in lieu of the rates specified in Part IV of the Sixth Schedule to the Finance Act, 1989 .

Increase of duty on registration of clubs.

161.—The duty of excise on a certificate of registration of a club imposed by section 48 (2) of the Finance Act, 1989 , 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 September, 1992, be charged, levied and paid at the rate of £400 in lieu of the rate specified in the said section 48 (2).

Restriction of section 29 (provisions in relation to customs, customs duties and EEC levies) of Finance Act, 1978 .

162.—(1) For the purposes of section 29 of the Finance Act, 1978 , references to "levy" shall be construed so as not to include monetary compensatory amounts chargeable on goods exported from the State to any state which is not a member of the European Communities.

(2) In this section "monetary compensatory amounts" means the system of monetary compensatory amounts governed by Council Regulation (EEC) No. 1677/85 of 11 June 1985 * ³ , or by any subsequent Council Regulation to the like effect.

Amendment of Finance (Excise Duties) (Vehicles) Act, 1952 .

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

(2) The Act of 1952 shall, as respects licences under section 1 of that Act taken out for periods beginning on or after the 1st day of April, 1992, be amended in Part I of the Schedule thereto (inserted by the Finance Act, 1991 ):

( a ) by the substitution of the following paragraph for paragraph 1.

"1. Vehicles of the following descriptions not exceeding 500 kilograms in weight unladen:

( a ) bicycles or tricycles (other than tricycles neither constructed nor adapted for use nor used for the carriage of a passenger)	£20
( b ) vehicles with three or more wheels neither constructed nor adapted for use nor used for the carriage of a driver or passenger	£20.",

( b ) by the substitution of "£50" for "£40" in subparagraphs (a), (c) and (d) of paragraph 2,

( c ) by the substitution of "£400" for "£300" in subparagraph (b) of paragraph 2,

( d ) by the substitution of the following subparagraph for subparagraph (a) of paragraph 3:

"( a ) Vehicles constructed or adapted for the carriage of more than 8 persons which are owned by a youth or community organisation and which are used exclusively by the organisation solely for the purpose of conveying persons on journeys directly related to the activities of the organisation and which have seating capacity for—

(i) more than 8 persons but not more than 20 persons	£150
(ii) more than 20 persons but not more than 40 persons	£220
(iii) more than 40 persons but not more than 60 persons	£300
(iv) more than 60 persons	£375. ",

( e ) by the substitution of the following subparagraph for subparagraph ( b ) of paragraph 3:

"( b ) Vehicles (other than those referred to in subparagraph ( c ) of this paragraph) used as large public service vehicles within the meaning of the Road Traffic Act, 1961 , and having seating capacity for—

(i) more than 8 persons but not more than 20 persons	£150
(ii) more than 20 persons but not more than 40 persons	£220
(iii) more than 40 persons but not more than 60 persons	£300
(iv) more than 60 persons	£375. ",

( f ) by the substitution of "£45" for "£35" in subparagraphs ( a ), (b) and ( c ) of paragraph 4,

( g ) by the substitution of "£120" for "£90" in subparagraph ( d ) of paragraph 4,

( h ) by the substitution of the following paragraph for paragraph 5:

"5. Vehicles (including tricycles weighing more than 500 kilograms 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 1,500 kilograms in weight unladen	£50
( b ) being vehicles which are not such electrically propelled vehicles as aforesaid and which have a weight unladen-
(i) not exceeding 3,000 kilograms	£150
(ii) exceeding 3,000 kilograms but not exceeding 4,000 kilograms	£190
(iii) exceeding 4,000 kilograms but not exceeding 5,000 kilograms	£245
(iv) exceeding 5,000 kilograms but not exceeding 6,000 kilograms	£340
(v) exceeding 6,000 kilograms but not exceeding 7,000 kilograms	£460
(vi) exceeding 7,000 kilograms but not exceeding 8,000 kilograms	£580
(vii) exceeding 8,000 kilograms	£580 plus £135 kilograms or part thereof in excess of 8,000 kilograms.",

(i) by the substitution of "£60 for "£50 in subparagraph (a), (b) and (c) of paragraph 6, and

( j ) by the substitution of the following subparagraph for subparagraph (d) of paragraph 6:

"(d ) other vehicles to which this paragraph applies-
(i) with an engine capacity not exceeding 1,000 cubic centimetres	£92
(ii) with an engine capacity exceeding 1,000 cubic centimetres but notexceeding 1,500 cubic centimetres	£12.50 per 100 cubic centimetres or part thereof
(iii) with an engine capacity exceeding 1,500 cubic centimetres but not exceeding 1,700 cubic centimetres	£14.50 per 100 Cubic centimetres or part thereof
(iv) with an engine capacity exceeding 1,700 cubic centimetres but not exceeding 2,000 cubic Centimetres	£16.00 per 100 Cubic centimetres or part thereof
(v) with an engine capacity exceeding 2,000 cubic centimetres but not exceeding 2,500 cubic centimetres	£19.50 per 100 cubic centimetres or part thereof
(vi) with an engine capacity exceeding 2,500 cubic centimetres but not exceeding 3,000 cubic centimetres	£22.00 per 100 Cubic centimetres or part thereof
(vii) with an engine capacity Exceeding 3,000 cubic Centimetres	£800
(viii) electrically propelled	£92:

Provided that where the rate of duty so specified in any case equals a number of whole pounds and a fraction of a pound the fraction of a pound shall be regarded as a whole pound".

(3) The Act of 1952 shall, as respects licences under section 1 of that Act taken out for periods beginning on or after the 1st day of April, 1992, be amended by the substitution of "£90 or less" for "£70 or less" (inserted by the Finance Act, 1991 ) in subparagraph (b) of subsection (2) of section 1.

PART III VALUE-ADDED TAX

Interpretation (Part III).

164.—In this Part—

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

"the Act of 1973" means the Finance Act, 1973 ;

"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 Act, 1981 ;

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

"the Act of 1983" means the Finance Act, 1983 ;

"the Act of 1984" means the Finance Act, 1984 ;

"the Act of 1985" means the Finance Act, 1985 ;

"the Act of 1986" means the Finance Act, 1986 ;

"the Act of 1987" means the Finance Act, 1987 ;

"the Act of 1990" means the Finance Act, 1990 ;

"the Act of 1991" means the Finance Act, 1991 .

Amendment of section 1 (interpretation) of Principal Act.

165.—section 1 of the Principal Act is hereby amended—

( a ) in subsection (1):

(i) by the insertion after the definition of "exempted activity" of the following definition:

"'exportation of goods' means the exportation of goods to a destination outside the Community and, where the context so admits, cognate words shall be construed accordingly;",

(ii) by the deletion of the definition of "harbour authority",

(iii) by the insertion after the definition of "immovable goods" of the following definition:

"'importation of goods' means the importation of goods from outside the Community into a Member State either—

( a ) directly, or

( b ) through one or more than one other Member State where value-added tax referred to in Council Directive No. 77/388/EEC of 17 May 1977 ^(a) has not been chargeable on the goods in such other Member State or Member States in respect of the transaction concerned,

and, where the context so admits, cognate words shall be construed accordingly;",

(iv) by the insertion after the definition of "inspector of taxes" of the following definition:

"'intra-Community acquisition of goods' has the meaning assigned to it by section 3A;",

(v) by the insertion after the definition of "the Minister" of the following definition:

"'monthly control statement' has the meaning assigned to it by section 17;",

(vi) by the insertion after the definition of "moveable goods" of the following definition:

"'new means of transport' means motorised land vehicles with an engine cylinder capacity exceeding 48 cubic centimetres or a power exceeding 7.2 kilowatts, vessels exceeding 7.5 metres in length and aircraft with a take-off weight exceeding 1,550 kilogrammes—

( a ) which are intended for the transport of persons or goods, and

( b ) (i) which were supplied three months or less after the date of first entry into service, or

(ii) which have travelled 3,000 kilometres or less in the case of land vehicles, sailed for 100 hours or less in the case of vessels or flown for 40 hours or less in the case of aircraft,

other than vessels and aircraft of the kind referred to in paragraph (v) of the Second Schedule;",

(vii) by the insertion after the definition of "new means of transport of the following definition:

"'a person registered for value-added tax' means, in relation to another Member State, a person currently issued with an identification number in that State for the purposes of accounting for value-added tax referred to in Council Directive No. 77/388/EEC of 17 May 1977 and, in relation to the State, means a registered person;",

(viii) by the substitution in the definition of "taxable goods" of "supply, intra-Community acquisition or importation" for "supply or importation",

(ix) by the substitution in the definition of "taxable services" of "activity;" for "activity", and

( x ) by the insertion after the definition of "taxable services" of the following definition:

"'vessel', in relation to transport, means a waterborne craft of any type, whether self-propelled or not, and includes a hovercraft.",

and

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

"(2A) In this Act, save where the context otherwise requires, a reference to the territory of a Member State has the same meaning as it has in Article 3 (inserted by Council Directive No. 91/680/EEC of 16 December 1991 ^(b) ) of Council Directive No. 77/388/EEC of 17 May 1977, and references to Member States and cognate references shall be construed accordingly.".

Amendment of section 2 (charge of value-added tax) of Principal Act.

166.—section 2 of the Principal Act is hereby amended by the insertion of the following subsection after subsection (1):

"(1A) Without prejudice to subsection (1), with effect on and from the 1st day of January, 1993, value-added tax shall, subject to this Act and regulations, be charged, levied and paid—

( a ) on the intra-Community acquisition of goods, other than new means of transport, effected within the State for consideration by a taxable person,

and

( b ) on the intra-Community acquisition of new means of transport effected within the State for consideration.".

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

167.—Section 3 of the Principal Act is hereby amended—

( a ) in subsection (1):

(i) in paragraph (e) (inserted by the Act of 1978):

(I) by the substitution of ", imported or otherwise acquired" for "or imported, and

(II) by the deletion of "and",

(ii) in paragraph (f) (inserted by the Act of 1978):

(I) by the substitution of the following subparagraph for subparagraph (i):

"(i) upon their purchase, intra-Community acquisition or importation by the taxable person, or",

(II) in subparagraph (ii) by the deletion of "importation", and

(III) by the insertion after "section 12," of "and",

and

(iii) by the insertion of the following paragraph after paragraph f—

"( g ) the transfer by a person of goods from his business in the State to the territory of another Member State for the purposes of his business, other than for the purposes of any of the following:

(i) the transfer of the goods in question under the circumstances specified in paragraph (b) or (d) of subsection (6),

(ii) the transfer of the goods referred to in paragraphs (i), (v), (vi) and (x) of the Second Schedule,

(iii) the transfer of goods for the purpose of having contract work carried out on them,

(iv) the temporary use of the goods in question in the supply of a service by him in that other Member State,

(v) the temporary use of the goods in question, for a period not exceeding 24 months, in that other Member State, where the importation into that other Member State of the same goods with a view to their temporary use would be eligible for full exemption from import duties,",

( b ) in subsection (1A) (inserted by the Act of 1978) by the substitution of "( e ), (f) or (g)" for "( e ) or (f)", and

( c ) by the substitution of the following subsection for subsection 6—

"(6) The place where goods are supplied shall be deemed, for the purposes of this Act, to be—

( a ) in the case of goods dispatched or transported and to which paragraph (d) does not apply, the place where the dispatch or transportation to the person to whom they are supplied begins,

( b ) in the case of goods which are installed or assembled, with or without a trial run, by or on behalf of the supplier, the place where the goods are installed or assembled,

( c ) in the case of goods not dispatched or transported, the place where the goods are located at the time of supply,

( d ) notwithstanding paragraph (a) or (b), in the case of goods, other than new means of transport, dispatched or transported by or on behalf of the supplier—

(i) (I) from the territory of another Member State, or

(II) from outside the Community through the territory of another Member State into which the said goods have been imported,

to a person who is not a taxable person in the State, or

(ii) from a taxable person in the State to a person in another Member State who is not registered for value-added tax, the place where the goods are when the dispatch or transportation ends:

Provided that this paragraph shall not apply (unless the supplier, in accordance with regulations, elects that it shall apply) to the supply of goods, other than goods subject to a duty of excise, where the total consideration for such supplies does not exceed or is not likely to exceed—

( A ) in the case of goods to which subparagraph (i) relates, £27,000 in a calendar year, and

( B ) in the case of goods to which subparagraph (ii) relates, the amount specified in the Member State in question in accordance with Article 28b. 13(2) (inserted by Council Directive No. 91/680/EEC of 16 December 1991) of Council Directive No. 77/388/EEC of 17 May 1977.".

Intra-Community acquisition of goods.

168.—The Principal Act is hereby amended by the insertion of the following section after section 3:

"3A. (1) In this Act intra-Community acquisition of goods' means the acquisition of—

( a ) movable goods, other than new means of transport, supplied by a person registered for value-added tax in a Member State to a person in another Member State (other than an individual who is not a taxable person or who is not entitled to elect to be a taxable person) and which have been dispatched or transported from the territory of a Member State to the territory of another Member State as a result of such supply, or

( b ) new means of transport dispatched or transported from the territory of a Member State to the territory of another Member State.

(2) ( a ) The place where an intra-Community acquisition of goods occurs shall be deemed to be the place where the goods are when the dispatch or transportation ends.

( b ) Without prejudice to paragraph (a), when the person acquiring the goods quotes his value-added tax registration number for the purpose of the acquisition, the place where an intra-Community acquisition of goods occurs shall be deemed to be within the territory of the Member State which issued that registration number.

(3) For the purposes of this section—

( a ) a supply in the territory of another Member State shall be deemed to have arisen where, under similar circumstances, a supply would have arisen in the State under section 3, and

( b ) a person shall be deemed to be a taxable person or a person who is entitled to elect to be a taxable person in another Member State where, under similar circumstances, the person would be a taxable person or entitled to elect to be a taxable person in the State in accordance with section 8.

(4) Where goods are dispatched or transported from outside the Community to a person in the State who is not registered for tax and who is not an individual, and value-added tax referred to in Council Directive No. 77/388/EEC of 17 May 1977 is chargeable on the importation of the said goods into another Member State then, for the purposes of subsection (1), the person shall be deemed to be registered for value-added tax in that other Member State and the goods shall be deemed to have been dispatched or transported from that other Member State.".

Amendment of section 5 (supply of services) of Principal Act.

169.—Section 5 (inserted by the Act of 1978) of the Principal Act is hereby amended—

( a ) in subsection (3A) (inserted by the Act of 1986) by the substitution of "specified in paragraphs (f) and (g) of subsection (6) or in the Fourth Schedule" for "specified in the Fourth Schedule", and

( b ) in subsection (6):

(i) by the substitution of the following paragraph for paragraph (b):

"( b ) Transport services, with the exception of intra-Community transport of goods, shall be deemed, for the purposes of this Act, to be supplied where the transport takes place.",

(ii) by the substitution of the following subparagraph for subparagraph (ii) of paragraph (c):

"(ii) ancillary transport activities such as loading, unloading and handling, with the exception of activities ancillary to the intra-Community transport of goods received by a person registered for value-added tax in any Member State,", and

(iii) by the insertion of the following paragraphs after paragraph (e) (inserted by the Act of 1986):

"( f ) The place of supply of the following services received by a person registered for value-added tax in a Member State shall be deemed, for the purposes of this Act, to be within the territory of the Member State that so registered the person for value-added tax, that is to say:

(i) the intra-Community transport of goods,

(ii) activities ancillary to the intra-Community transport of goods such as loading, unloading and handling,

(iii) services of an agent acting in the name and on behalf of another person in the arrangement of services other than those specified in paragraph (vii) of the Fourth Schedule.

( g ) The place of supply of the following services supplied to persons other than those specified in paragraph (f) shall be deemed for the purposes of this Act to be—

(i) the place of departure in the case of—

(I) the intra-Community transport of goods,

(II) services of an agent acting in the name and on behalf of another person in the arrangement of intra-Community transport of goods, and

(ii) the place where they are physically performed in the case of services of an agent acting in the name and on behalf of another person in the arrangement of services other than those specified in subparagraph (i) (II) of this paragraph and paragraph (vii) of the Fourth Schedule.

( h ) In this subsection—

'intra-Community transport of goods' means transport where the place of departure and the place of arrival are situated within the territories of two different Member States;

'the place of departure' means the place where the transport of goods actually starts, leaving aside distance actually travelled to the place where the goods are;

'the place of arrival' means the place where the transport of goods actually ends.".

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

170.—(1) Section 8 of the Principal Act is hereby amended—

( a ) in subsection (3) (inserted by the Act of 1978) by the substitution of the following paragraph for paragraph (a):

"( a ) a farmer, for whose supply of agricultural services, other than insemination services, stock-minding or stock-rearing, the total consideration has not exceeded and is not likely to exceed £15,000 in any continuous period of 12 months,",

and

( b ) by the insertion of the following subsection after subsection (3B) (inserted by the Act of 1984):

"(3C)(a) The licensee of any premises (being premises in respect of which a licence for the sale of intoxicating liquor either on or off those premises was granted) shall be deemed to be the promoter of any dance held, during the subsistence of that licence, on those premises and shall be deemed to have received the total money, excluding tax, paid by those admitted to the dance together with any other consideration received or receivable in connection with the dance.

( b ) For the purposes of this subsection 'licensee' means—

(i) where the licence is held by the nominee of a body corporate, the body corporate, and

(iii) in any other case, the holder of the licence.".

(2) Section 8 of the Principal Act is hereby further amended—

( a ) in subsection (1) (inserted by the Act of 1978) by the insertion after "subsections" of "(1A),",

( b ) by the insertion of the following subsection after subsection (1):

"(1A)Where a person engages in the intra-Community acquisition of goods he shall be a taxable person and shall be accountable for and liable to pay the tax chargeable.",

( c ) in subsection (2) (inserted by the Act of 1978) by the substitution of "subparagraph (ii), (iii) or (iv) of paragraph (e), or paragraph (f), of subsection (6) of section 5"' for "section 5 (6) (e) (ii), (iii) or (iv)",

( d ) by the insertion of the following subsection after subsection (2A) (inserted by the Act of 1978):

"(2B)Notwithstanding the provisions of subsection (1A), an individual who does not engage in the supply of goods or services in the course or furtherance of business shall not be a taxable person in relation to the intra-Community acquisition of goods other than new means of transport:

Provided that an individual who is a taxable person by virtue of subsection (1A) and this subsection, in relation to the intra-Community acquisition of new means of transport, shall be deemed not to be a taxable person for the purposes of registration under section 9.",

( e ) by the substitution of the following subsection for subsection (3) (inserted by the Act of 1978):

"(3) Notwithstanding the provisions of subsections (1) and (1A), the following persons shall not, unless they otherwise elect and then only during the period for which such election has effect, be taxable persons—

( a ) a farmer, for whose supply of agricultural services, other than insemination services, stock-minding or stock-rearing, the total consideration has not exceeded and is not likely to exceed £15,000 in any continuous period of twelve months,

( b ) a person whose supplies of taxable goods or services consist exclusively of—

(i) supplies to taxable persons and persons to whom section 13 (3) applies of fish (not being at a stage of processing further than that of being gutted, salted and frozen) which he has caught in the course of a sea-fishing business, or

(ii) supplies of the kind specified in subparagraph (i) and of either or both of the following, that is to say:

(I) supplies of machinery, plant or equipment which have been used by him in the course of a sea-fishing business, and

(II) supplies of other goods and services the total consideration for which has not exceeded and is not likely to exceed £15,000 in any continuous period of 12 months,

( c ) (i) subject to subparagraph (ii), a person for whose supply of taxable goods (other than supplies of the kind specified in section 3 (6) (d) (i)) and services the total consideration has not exceeded and is not likely to exceed £32,000 in any continuous period of 12 months,

(ii) subparagraph (i) shall apply if, but only if, not less than 90 per cent. of the total consideration referred to therein is derived from the supply of taxable goods (not being goods chargeable at any of the rates specified in paragraphs (a), (c), (d) and (e) of subsection (1) of section 11 which were produced or manufactured by him wholly or mainly from materials chargeable at the rate specified in paragraph (b) of that subsection),

( d ) a person for whose intra-Community acquisitions of goods, other than new means of transport and other than goods subject to a duty of excise, the total consideration has not exceeded and is not likely to exceed £32,000 in any continuous period of 12 months,

( e ) a person, other than a person to whom paragraph (a), (b) or (c) applies, for whose supply of taxable goods and services the total consideration has not exceeded and is not likely to exceed £15,000 in any continuous period of twelve months:

Provided that—

(i) where in the case of two or more persons one of whom exercises control over one or more of the other persons, supplies of goods of the same class or of services of the same nature are made by two or more of those persons, the total of the consideration relating to the said supplies shall, for the purposes of the application of paragraphs (c) and (e) in relation to each of the persons aforesaid who made the said supplies be treated as if all of the supplies in question had been made by each of the last-mentioned persons;

(ii) in the case of a person specified in paragraph (a), (b), (c) or (e), the total consideration for intra-Community acquisitions of goods, other than new means of transport and other than goods subject to a duty of excise, by him has not exceeded and is not likely to exceed £32,000 in any continuous period of 12 months.",

and

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

"(6)A taxable person, other than a person to whom subsection (5) applies, may, in accordance with regulations, be treated, for the purposes of this Act, as a person who is not a taxable person if the Revenue Commissioners are satisfied that, in the absence of an election under subsection (3), he would not be a taxable person.".

Amendment of section 9 (registration) of Principal Act.

171.—Section 9 of the Principal Act is hereby amended by the insertion of the following subsection after subsection (1) (inserted by the Act of 1978):

"(1A) The Revenue Commissioners shall assign to each person registered in accordance with subsection (1) a registration number.".

Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

172.—Section 10 (inserted by the Act of 1978) of The Principal Act is hereby amended—

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

"(1A) The amount on which tax is chargeable on the intra-Community acquisition of goods by virtue of section 2 (1A) shall, subject to this section, be the total consideration, including all taxes, commissions, costs and charges whatsoever, but not including value-added tax chargeable, in respect of that acquisition.",

( b ) in subsection (2) by the substitution of "subsections (1) or (1A)" for "subsection (1)",

( c ) in the proviso to subsection (2) by the insertion after "Provided that" of ", as respects subsection (1),",

( d ) by the substitution of the following paragraph for paragraph (a) of subsection (3):

"( a ) If for any non-business reason the actual consideration in relation to—

(i) the supply of any goods or services, or

(ii) the intra-Community acquisition of goods,

is less than the open market price or there is no consideration, the amount on which tax is chargeable shall be the open market price.",

( e ) in subsection (4) by the substitution of "the person supplying or acquiring the goods" for "the person supplying the goods",

( f ) by the insertion of the following subsection after subsection (4A) (inserted by the Act of 1982):

"(4B) The amount on which tax is chargeable in relation to the supply of goods referred to in section 3 (1) (g) shall be the open market price.",

( g ) by the insertion of the following subsection after subsection (5):

"(5A) Where,

( a ) an intra-Community acquisition is deemed to have taken place in the territory of another Member State in accordance with section 3A (2) (a),

( b ) the intra-Community acquisition has been subject to value-added tax, referred to in Council Directive No. 77/388/EEC of 17 May 1977, in that other Member State, and

( c ) the intra-Community acquisition is also deemed to have taken place in the State, in accordance with section 3A (2) (b),

then the consideration for the intra-Community acquisition to which paragraph (c) relates shall be reduced to nil.",

and

( h ) by the insertion in the definition of "the open market price" in subsection (10) after "supply of any goods or services" of "or the intra-Community acquisition of goods".

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

173.—(1) Section 11 of the Principal Act is hereby amended in subsection (1) (inserted by the Act of 1985)—

( a ) by the substitution of the following paragraph for paragraph ( c ) (as amended by the Act of 1991):

"( c ) (i) 12.5 per cent. of the amount on which tax is chargeable in relation to the supply of goods or services of a kind specified in subparagraphs ( a ) , ( aa ), ( b ) and ( c ) of paragraph (i), paragraphs ( xia ) to ( xif ) and paragraphs ( xiiif ), ( xiiih ), ( xiiij ) and (xiv) of the Sixth Schedule,

(ii) 16 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 other than those to which subparagraph (i) of this paragraph relates, and",

and

( b ) by the substitution, in paragraph ( d ), of "2.7 per cent." for "2.3 per cent." (inserted by the Act of 1990).

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

( a ) by the substitution of the following subsection for subsection (1) (inserted by the Act of 1985):

"(1) Tax shall be charged, in relation to the supply of taxable goods or services and the importation of goods, at whichever of the following rates is appropriate in any particular case—

( a ) 21 per cent. of the amount on which tax is chargeable other than in relation to goods or services on which tax is chargeable at any of the rates specified in paragraphs ( b ), ( c ), ( d ), ( e ) and ( f ),

( b ) zero per cent. of the amount on which tax is chargeable in relation to goods in the circumstances specified in paragraph (i) of the Second Schedule or of goods or services of a kind specified in paragraphs (iii) to (xx) of that Schedule,

( c ) 10 per cent. of the amount on which tax is chargeable in relation to goods or services of a kind specified in the Third Schedule,

( d ) 12.5 per cent. of the amount on which tax is chargeable in relation to goods or services of a kind specified in the Sixth Schedule,

( e ) 16 per cent. of the amount on which tax is chargeable in relation to goods or services of a kind specified in the Seventh Schedule, and

( f ) 2.7 per cent. of the amount on which tax is chargeable in relation to the supply of livestock and live greyhounds and to the hire of horses.",

( b ) by the deletion of subsection (7) (inserted by the Act of 1976), and

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

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

( a ) in subsection (1) (inserted by subsection (2) of this section) by the insertion after "taxable goods or services" of ", the intra-Community acquisition of goods",

( b ) by the substitution in subsection (1A) ( a ) (inserted by the Act of 1973) of "subsection (1) (a) or (1A) of section 2 "for "section 2 (1) ( a )", and of "subsection (1), (1A) or (2)" for "subsection (1) or (2)",

( c ) in subsection (1B) (inserted by the Act of 1973):

(i) by the substitution in paragraph ( a ) of the following subparagraph for subparagraph (ii):

"(ii) the rate at which tax is chargeable in relation to the supply or intra-Community acquisition by the person of goods of any kind, the supply or intra-Community acquisition of goods in any particular circumstances or the supply by the person of services of any kind.",

(ii) by the substitution in paragraph ( b ) of the following subparagraph for subparagraph (ii):

"(ii) the rate at which tax is chargeable in relation to the supply or intra-Community acquisition of goods of any kind, the supply or intra-Community acquisition of goods in any particular circumstances or the supply of services of any kind.", and

(iii) by the substitution in paragraph ( g ) of "supplies goods or makes an intra-Community acquisition of goods, or supplies services," for "supplies goods or services",

and

( d ) in subsection (3) (inserted by the Act of 1978):

(i) by the insertion after "section 10 (8)" of "in relation to supplies of goods and services",

(ii) by the insertion after "supplies", in each place where it occurs, of "or intra-Community acquisitions",

(iii) by the insertion in paragraph (c) after "supply of taxable goods or services" of ", or intra-Community acquisition of goods," and

(iv) by the insertion in paragraph (d) after "supply of any taxable goods or services" of ",or any intra-Community acquisition of goods,".

Amendment of section 12 (deductions for tax borne or paid) of Principal Act.

174.—Section 12 of the Principal Act is hereby amended—

( a ) in subsection (1) (inserted by the Act of 1987) by the insertion of the following subparagraphs after subparagraph (ii) of paragraph (a):

"(iia) subject to such conditions (if any) as may be specified in regulations, the tax chargeable during the period, being tax for which he is liable in respect of intra-Community acquisitions of goods,

( iib) subject to and in accordance with regulations, in respect of goods supplied under section 3 (1) (g) an amount equal to any residual tax included in the consideration for the supply,",

and

( b ) in subsection (3) (inserted by the Act of 1978):

(i) by the substitution in subparagraph (iii) of paragraph (a) for "acquisition (including hiring)" of "purchase, hiring, intra-Community acquisition, or importation", and

(ii) by the insertion in subparagraph (iv) of paragraph (a) after "purchase" of "intra-Community acquisition or importation".

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

175.—(1) Section 12A (inserted by the Act of 1978) of The Principal Act is hereby amended in subsection (1) by the substitution of "2.7 per cent." for "2.3 per cent." (inserted by the Act of 1990).

(2) Section 12A of the Principal Act is hereby further amended in subsection (1) by the deletion of ", and the person shall, if he is a taxable person, be entitled to treat the flat-rate addition as tax deductible under section 12 subject, however, to any restrictions imposed by or under subsection (3) or (4) of that section".

Amendment of section 13 (remission of tax on goods exported, etc.) of Principal Act.

176.—Section 13 (inserted by the Act of 1978) of The Principal Act is hereby amended—

( a ) in paragraph (c) of subsection (3) by the insertion of "(including any flat-rate addition)" after "means tax chargeable",

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

"(3A)(a) The Revenue Commissioners shall, in accordance with regulations, repay to a person to whom this subsection applies the residual tax included in the consideration for supply of a new means of transport, where such new means of transport is subsequently dispatched or transported to another Member State.

( b ) This subsection applies to a person not entitled to a deduction under section 12 of the tax borne or paid by him on the purchase, intra-Community acquisition or importation of the goods in question.".

Amendment of section 14 (determination of tax due by reference to cash receipts) of Principal Act.

177.—(1) Section 14 of the Principal Act is hereby amended—

( a ) in subsection 1—

(i) by the substitution of "taxable supplies" for "the supply of taxable goods or services" and

(ii) by the deletion of paragraph (b),

( b ) by the insertion of the following subsection after subsection (1):

"(1A) Where an authorisation to which subsection (1) relates has not been cancelled under subsection (2), then—

( a ) the rate of tax due by the person concerned in respect of a supply shall be the rate of tax chargeable at the time the goods or services are supplied,

( b ) if tax on a supply has already been due and payable under any other provisions of this Act prior to the issue of such authorisation, tax shall not be due again in respect of any such supply as a result of the application of subsection (1), and

( c ) if no tax is due or payable on a supply made prior to the issue of such authorisation, tax shall not be due in respect of any such supply as a result of the application of subsection (1).",

( c ) in subsection (2) by the deletion of "or (b)", and of "and (b)",

and

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

"(3) This section shall not apply to tax provided for by subsection (1) (b) of section 2".

(2) Section 14 of the Principal Act is hereby further amended in subsection (3) (inserted by subsection (1) of this section) by the insertion after "subsection (1) (b)" of "or (1A)".

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

178.—Section 15 (inserted by the Act of 1978) of the Principal Act is hereby amended—

( a ) by the substitution of the following subsection for subsection (1) (inserted by the Act of 1985):

"(1) Tax shall be charged on the importation of goods at whichever of the rates specified in section 11 (1) is the appropriate rate in respect of such goods.",

( b ) by the deletion of subsection (2),

and

( c ) by the insertion of the following subsection after subsection (5):

"(5A) The Revenue Commissioners shall, in accordance with regulations, repay the tax chargeable on the importation of goods where the goods have been dispatched or transported:

( a ) to another Member State from outside the Community, and

( b ) to a person, other than an individual, who is not registered for value-added tax in that other Member State:

Provided that this subsection shall only apply where it is shown to the satisfaction of the Revenue Commissioners that the goods in question have been subject to value-added tax referred to in Council Directive No. 77/388/EEC of 17 May 1977 in that other Member State.".

Amendment of section 16 (duty to keep records) of Principal Act.

179.—Section 16 of the Principal Act is hereby amended—

( a ) in subsection (2) by the deletion of "and, in respect of goods imported by him, copies, stamped on behalf of the Revenue Commissioners, of the relevant customs entries", and

( b ) in subsection 3—

(i) by the deletion of ", stamped on behalf of the Revenue Commissioners,",

(ii) by the insertion, after "the supply of goods or services," of "the intra-Community acquisition of goods,",

(iii) by the insertion after "invoices," where it first occurs of "monthly control statements,",

(iv) by the substitution of "records, invoices, monthly control statements" for "records or invoices", and

(v) by the insertion after "invoice," of "monthly control statement,".

Amendment of section 17 (invoices) of Principal Act.

180.—Section 17 of the Principal Act is hereby amended—

( a ) in subsection (1):

(i) by the insertion after "another taxable person" of "or goods to a person, other than an individual, in another Member State of the Community"

(ii) by the deletion of ", including the rate of zero per cent.,", and

(iii) by the substitution of "person" for "other taxable person",

( b ) in subsection (1A) (inserted by the Act of 1986) by the substitution of the following paragraphs for paragraphs (b) and (c):

"( b ) An invoice or other document required to be issued under this section shall not be deemed by paragraph (a) to be issued unless the person, who is required to issue such invoice or other document, as the case may be, has been authorised by the Revenue Commissioners to issue such invoice or other document to a recipient who has been authorised by the Revenue Commissioners in accordance with paragraph (c), and he complies with such conditions as may be specified by regulations.

( c ) A person who receives the transmissions referred to in paragraphs (a) and (b) shall not be deemed to be issued with an invoice or other document, as the case may be, required to be issued under this section unless he has been authorised in that respect by the Revenue Commissioners and he complies with such conditions as may be specified by regulations.

( d ) The Revenue Commissioners may, in accordance with regulations, cancel an authorisation under paragraph (b) or (c).",

( c ) by the insertion of the following subsection after subsection (1A) (inserted by the Act of 1986):

"(1B) A taxable person who supplies goods to another taxable person in such circumstances that tax is chargeable at any of the rates specified in section 11 (1) shall issue to that other taxable person a single document (in this Act referred to as a monthly control statement) in respect of all such supplies to that other taxable person during each calendar month, and every such statement shall be in such form, contain such particulars, and be issued within such time as may be specified by regulations:

Provided that this provision shall not apply to taxable persons whose taxable turnover in respect of supplies of goods to other taxable persons has not exceeded £2,000,000 in the previous period of 12 months.",

( d ) in subsection (2) (inserted by the Act of 1978) by the substitution of "purchaser" for "taxable person", in each place where it occurs,

( e ) in subsection 3—

(i) by the substitution of "to another person" for "to a taxable person",

(ii) in paragraph (a) by the substitution of "to that other person" for "to the taxable person", and

(iii) in paragraph (b):

(I) by the substitution of "to that other person" for "to the taxable person", where it first occurs, and

(II) by the substitution of "and, if that other person is a taxable person, the amount for "and the amount",

( f ) in paragraph (b) of subsection (4) (inserted by the Act of 1978):

(i) by the deletion of ", if the person to whom the supply was made is a taxable person," and

(ii) by the substitution of "and the amount which the person may deduct under section 12 or is entitled to be repaid under section 13 shall," for "and the amount which the taxable person may deduct under section 12 shall,",

( g ) in subsection (8) by the insertion after "supply of goods or services" of ", other than supplies of the kind specified in subparagraph (b) or (c) of paragraph (i) of the Second Schedule,", and

( h ) in subsection (12):

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

"( ai) A flat-rate farmer shall, if requested in writing by another person and if the request states that the other person is entitled to repayment of the flat-rate addition under section 13, give to that other person in writing the particulars specified in regulations for the purpose of subsection (2) in respect of the goods or services supplied by the flat-rate farmer to that other person that are specified in the request.",

and

(ii) by the insertion in paragraph (b) after "paragraph (a)" of "or (ai)".

Amendment of section 18 (inspection and removal of records) of Principal Act.

181.—Section 18 of the Principal Act is hereby amended—

( a ) in paragraph (a) of subsection 1—

(i) by the insertion of the following subparagraph (iia) after subparagraph (ii):

"(iia) may, if he has reason to believe that a person is carrying or has in his possession any records which may be required as evidence in criminal proceedings in accordance with section 94 (as amended by section 243 of the Finance Act, 1992 ) of the Finance Act, 1983 , in relation to the tax, request the person to produce any such records, and if that person should fail to do so, the authorised officer or a member of the Garda Síochána may search that person:

Provided that—

( A ) the officer or the member of the Garda Síochána conducting the search shall ensure, as far as practicable, that the person understands the reason for the search,

( B ) the search is conducted with due regard to the privacy of that person,

( C ) the person being searched shall not be searched by an officer or member of the Garda Síochána of the opposite sex, and

( D ) the person being searched shall not be requested to remove any clothing other than headgear or a coat, jacket, glove or a similar article of clothing.",

(ii) by the deletion in paragraph (iii) of "for the recovery of a penalty",

(iii) by the insertion in paragraph (iv) after "supplies" of ", intra-Community acquisitions",

(iv) by the insertion in paragraph (v) after "all reasonable assistance" of ",including providing information and explanations and furnishing documents in connection with the business, as required by the authorised officer",

and

( b ) by the insertion of the following subsections after subsection (1):

"(1A) A taxable person shall, on request from an authorised officer, furnish to that officer, in respect of a specified period, the following information:

( a ) the name and address of each of his customers and the total consideration payable in respect of supplies of goods and services made by him to each customer and the tax thereon, and

( b ) the name, address and registration number of each of his suppliers and the total consideration payable in respect of goods and services supplied to him from each supplier and the tax thereon.

(1B) In this section 'records' means any document, or any other written or printed material in any form, including any information stored, maintained or preserved by means of any mechanical or electronic device, whether or not stored, maintained or preserved in a legible form, which a person is required to keep, retain, issue or produce for inspection or which may be inspected under any provision relating to tax.".

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

182.—Section 19 of the Principal Act is hereby amended—

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

"(1A) Tax chargeable under section 2 (1A) shall be due—

( a ) on the fifteenth day of the month following that during which the intra-Community acquisition occurs;

( b ) in case an invoice is issued before the date specified in paragraph (a) by the supplier in another Member State to the person acquiring the goods, when that invoice is issued.",

( b ) in subsection (2) by the insertion after "section 2 (1) (a)" of ",other than tax chargeable in respect of supplies of the kind specified in subparagraph (b) or (c) of paragraph (i) of the Second Schedule,", and

( c ) by the insertion after subsection (3) (inserted by the Act of 1983) of the following subsection:

"(4) Notwithstanding subsection (3), where—

( a ) a taxable person makes an intra-Community acquisition of a motor vehicle in respect of which he is not entitled to a deduction of tax under section 12, or

( b ) an individual who is a taxable person in accordance with subsections (1A) and (2B) of section 8 makes an intra-Community acquisition of a new means of transport,

the tax shall be payable, at a time and in a manner to be determined by regulations.".

Statement of intra-Community supplies.

183.—The Principal Act is hereby amended by the insertion of the following section after section 19:

"19A.(1) Subject to subsections (2) and (3), a taxable person shall by the last day of the month immediately following the end of each calendar quarter, furnish to the Revenue Commissioners a statement of his intra-Community supplies in that quarter prepared in accordance with, and containing such other particulars as may be specified in, regulations.

(2) The Revenue Commissioners shall, on request, authorise a taxable person to furnish by the last day of each month a statement of his intra-Community supplies in the previous month prepared in accordance with, and containing such other particulars as may be specified in, regulations.

(3) The Revenue Commissioners may, on request, authorise a taxable person, whose supplies do not exceed or are not likely to exceed, in a calendar year, an amount or amounts specified in regulations, to furnish by the last day of January following that calendar year a statement of such intra-Community supplies prepared in accordance with and containing such other particulars as may be specified in regulations.

(4) Notwithstanding the provisions of subsections (1), (2) and (3), a taxable person who made no intra-Community supplies in the relevant period, but who was liable to furnish a statement in respect of a previous period, shall, unless authorised by the Revenue Commissioners, furnish to them within the relevant time limit a statement indicating that he made no such supplies in that period.

(5) The Revenue Commissioners may, in accordance with regulations, cancel an authorisation under subsection (2) or (3).

(6) In this section intra-Community supplies' means:

( a ) supplies of goods to a person registered for value-added tax in another Member State, and

( b ) transfers of the kind referred to in section 3 (1) (g) (iii).".

Amendment of section 20 (refund of tax) of Principal Act.

184.—(1) Section 20 of the Principal Act is hereby amended—

( a ) in subsection (1) (inserted by the Act of 1981) by the substitution of "Subject to subsections (1A) and (1B)" for "Subject to subsection (1A)",

( b ) by the insertion after subsection (1A) (inserted by the Act of 1991) of the following subsection:

"(1B) The Revenue Commissioners may, where it appears requisite to them to do so for the protection of the revenue, require as a condition for making a refund in accordance with subsection (1) the giving of security of such amount and in such manner and form as they may determine:

Provided that the amount of such security shall not, in any particular case, exceed the amount to be refunded.",

( c ) in subsection (3) by the substitution of the following paragraph for paragraph (a):

"( a ) The Minister may by order provide that a person who fulfils to the satisfaction of the Revenue Commissioners such conditions as may be specified in the order shall be entitled to be repaid so much, as is specified in the order, of any tax borne or paid by him as does not qualify for deduction under section 12.",

and

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

"(5) ( a ) If a person pays an amount of tax which was not properly due by him, he may claim a refund of the amount and the Revenue Commissioners shall, subject to the provisions of this section, refund to him that amount.

( b ) It shall be a defence in relation to a claim under this subsection or under any other provision of this Act or regulations for a refund that payment of the refund would unjustly enrich the claimant.".

(2) Every order made under Section 20(3) (a) of The Principal Act which is a subsisting order immediately before the commencement of this section shall, upon such commencement, continue in force as if made under the said section 20 (3) (a) as amended by this section.

Amendment of section 23 (determination of tax due) of Principal Act.

185.—Section 23 of the Principal Act is hereby amended—

( a ) in subsection (1):

(i) by the substitution of "assessment" for "estimate", and

(ii) by the substitution of "assessed" for "estimated", and

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

"(3) Where a person appeals an assessment under subsection (1), within the time limits provided for in subsection (2), he shall pay to the Revenue Commissioners the amount which he believes to be due, and if—

( a ) the amount paid is greater than 80 per cent. of the amount of the tax found to be due on the determination of the appeal, and

( b ) the balance of the amount found to be due on the determination of the appeal is paid within one month of the date of such determination,

interest in accordance with section 21 shall not be chargeable from the date of raising of the assessment.".

Security to be given by certain taxable persons.

186.—The Principal Act is hereby amended by the insertion of the following section after section 23:

"23A. (1) The Revenue Commissioners may, where it appears requisite to them to do so for the protection of the revenue, require a taxable person, as a condition of his supplying goods or services under a taxable supply, to give security, or further security, of such amount and in such manner and form as they may determine, for the payment of any tax which is, or may become, due from him from the date of service on him of a notice in writing to that effect.

(2) Where notice is served on a person in accordance with subsection (1) the person may, on giving notice to the Revenue Commissioners within the period of twenty-one days from the date of the service of the notice, appeal the requirement of giving any security under subsection (1) to the Appeal Commissioners.".

Amendment of section 25 (appeals) of Principal Act.

187.—Section 25 of the Principal Act is hereby amended—

( a ) in subsection (1) by the insertion after paragraph (aa) (inserted by the Act of 1991) of the following paragraph:

"(ab) the deeming, in accordance with section 37, of a person to have made supplies in the course or furtherance of business,",

and

( b ) in subsection (2) by the substitution of "section 11 (1B), 23 or 23A" for "section 11 (1B) or 23".

Amendment of section 26 (penalties generally) of Principal Act.

188.—Section 26 of the Principal Act is hereby amended—

( a ) in subsection (1) (inserted by the Act of 1982):

(i) by the substitution of ", 19 or 19A" for "or 19", and

(ii) by the substitution of "£1,200" for "£800",

( b ) in subsection (2) by the substitution of "£750" for "£500",

( c ) in subsection (2A) (inserted by the Act of 1982) by the substitution of "£750" for "£500",

( d ) in subsection (3) by the substitution of "£750" for "£500",

( e ) in subsection (3A) (inserted by the Act of 1973) by the substitution of "£1,000" for "£800", and

( f ) by the insertion of the following subsection after subsection (3A):

"(3B) A person who supplies taxable goods or services in contravention of the requirement of security specified in section 23A shall be liable to a penalty of £1,200 in respect of each such supply.".

Amendment of section 27 (fraudulent returns etc.) of Principal Act.

189.—Section 27 of the Principal Act is hereby amended—

( a ) in subsection (1):

(i) by the insertion after "invoice," of "registration number, monthly control statement, claim,", and

(ii) by the substitution of the following paragraph for paragraph (b):

"( b ) the amount, or in the case of fraud, twice the amount of the difference between—

(i) the amount of tax properly payable by, or refundable to, such person if the said return, invoice, registration number, monthly control statement, claim, credit note, debit note, receipt, account, voucher, bank statement, estimate, statement, information, book, document, record or declaration had been correct, and

(ii) the amount of tax (if any) paid, or claimed by way of refund.",

( b ) in subsections (3) and (7) by the insertion after "invoice," in each place where it occurs, of "registration number, monthly control statement, claim,",

( c ) by the insertion of the following subsection after subsection (9):

"(9A) (1) Where goods—

( a ) were supplied at the rate of zero per cent. subject to the condition that they were to be dispatched or transported outside the State in accordance with subparagraph (a), (b) or (c) of paragraph (i) of the Second Schedule and the goods were not so dispatched or transported,

( b ) were acquired without payment of value-added tax referred to in Council Directive No. 77/388/EEC of 17 May 1977 in another Member State as a result of the declaration of an incorrect registration number, or

( c ) are being supplied by a taxable person who has not complied with the provisions of section 9 (2),

the goods shall be liable to forfeiture.

(2) Whenever an officer authorised by the Revenue Commissioners reasonably suspects that goods are liable to forfeiture in accordance with subsection (1) the goods may be detained by the said officer until such examination, enquiries or investigations as may be deemed necessary by the said officer, or by another authorised officer of the Revenue Commissioners, have been made for the purpose of determining to the satisfaction of either officer whether or not the goods were so supplied or acquired.

(3) When a determination referred to in subsection (2) has been made in respect of any goods, or upon the expiry of a period of two months from the date on which the said goods were detained under the said subsection, whichever is the earlier, the said goods shall be seized as liable to forfeiture or released.",

( d ) in subsection (10) by the substitution of:

(i) "subsection (9) or (9A)" for "subsection (9)", and

(ii) "the said subsections and any provisions in relation to offences under those Acts shall apply, with any necessary modifications, in relation to the said subsections" for "the said subsection",

and

( e ) by the insertion of the following subsection after subsection (10):

"(11) Where an officer authorised by the Revenue Commissioners for the purposes of this subsection or a member of the Garda Síochána has reasonable grounds for suspecting that a criminal offence has been committed under the provisions of section 94 (as amended by section 243 of the Finance Act, 1992 ) of the Finance Act, 1983 , in relation to tax, by a person who is not established in the State, or whom he believes is likely to leave the State, he may arrest that person.".

Amendment of section 28 (assisting making incorrect returns) of Principal Act.

190.—Section 28 of the Principal Act is hereby amended—

( a ) by the insertion after "invoice," of "monthly control statement, claim,", and

( b ) by the substitution of "£750" for "£500".

Amendment of section 30 (time limits) of Principal Act.

191.—Section 30 of the Principal Act is hereby amended

( a ) by the insertion after "estimation", wherever it occurs, of "or assessment",

( b ) by the insertion after "estimate", wherever it occurs, of "or assessment", and

( c ) by the insertion in subsection (4) ( b ) after "invoice," of "monthly control statement,".

Amendment of section 32 (regulations) of Principal Act.

192.—Section 32 of the Principal Act is hereby amended in subsection (1):

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

"(aa) the deduction of tax chargeable in respect of intra-Community acquisitions;

(ab) the manner in which residual tax referred to in section 12 (1) (a) (iib ) may be calculated and deducted;

(ac) the manner in which residual tax referred to in section 13 (3A) may be calculated and repaid;

(ad) the repayment, in accordance with section 15 (5A), of tax chargeable on the importation of goods;

(ae) the time and manner in which tax shall be payable in respect of the goods referred to in section 19 (4);

(af) the form of statement required to be furnished in accordance with section 19A, the particulars to be specified therein and the amount or amounts to be applied for the purposes of section 19A (3);

(ag) the supply of goods by tax-free shops in accordance with paragraph ( ia ) of the Second Schedule;

(ah) the importation of goods consigned to another Member State in accordance with paragraph ( iiib ) of the Second Schedule;

(ai) the circumstances in which a person may elect not to apply the proviso to subsection (6) (d) of section 3;",

and

( b ) by the insertion in paragraph (i) (inserted by the Act of 1978) of "monthly control statement," after "invoice," in each place where it occurs.

Substitution of certain persons for persons not established in the State.

193.—The Principal Act is hereby amended by the substitution of the following section for section 37:

"37. Where a taxable person not established in the State supplies goods or services, the Revenue Commissioners may, where it appears requisite to them to do so for the protection of the revenue, deem a person who—

( a ) acts or has acted on behalf of the taxable person in relation to such supplies, or

( b ) allows or has allowed such supplies to be made on land owned, occupied or controlled by him,

to have made such supplies in the course or furtherance of business from the date of service on him of a notice in writing to that effect.".

Amendment of First Schedule to Principal Act.

194.—(1) The First Schedule (inserted by the Act of 1978) to The Principal Act is hereby amended—

( a ) in paragraph (iv) by the insertion of the following subparagraph after subparagraph (b) (inserted by the Act of 1991):

"(bi) provision of facilities of the kind to which paragraph ( viia ) of the Sixth Schedule refers,",

( b ) in paragraph (viii) (inserted by the Act of 1985) by the deletion in paragraph (a) of "to which section 11 (7) relates",

( c ) by the substitution of the following paragraph for paragraph (xvii):

"(xvii) promotion of (other than in the course of the provision of facilities of the kind specified in paragraph (viia) of the Sixth Schedule), or the admission of spectators to, sporting events,",

( d ) in paragraph (xviii) by the substitution of ",supply and importation" for "and supply", and

( e ) in paragraph (xxiii) by the deletion of "for its members".

(2) The First Schedule to The Principal Act is hereby further amended—

( a ) in paragraph (xviii) (as amended by subsection (1) of this section) by the substitution of "supply, intra-Community acquisition or importation" for "supply and importation", and

( b ) in paragraph (xxiv) by the insertion of ", other than a supply of goods of a kind specified in section 3 (1) (g)," after "supply of goods".

Amendment of Second Schedule to Principal Act.

195.—(1) The Second Schedule (inserted by the Act of 1976) to The Principal Act is hereby amended—

( a ) by the insertion of the following paragraph after paragraph (v) (inserted by the Act of 1978):

"(va) the supply, repair, maintenance and hiring of equipment incorporated or used in aircraft to which subparagraph (b) of paragraph (v) relates;", and

( b ) in paragraph (xii) (inserted by the Act of 1985):

(i) by the substitution of "paragraph (iv) of the Sixth Schedule" for "paragraph (xic ) of the Sixth Schedule",

(ii) by the substitution of the following subparagraph for subparagraph (b):

"( b ) other beverages, including water and syrups, concentrates, essences, powders, crystals or other products for the preparation of beverages, but not including—

(I) tea and preparations thereof,

(II) cocoa, coffee and chicory and other roasted coffee substitutes, and preparations and extracts thereof,

(III) milk and preparations and extracts thereof, or

(IV) preparations and extracts of meat, yeast, or egg,",

(iii) by the substitution of the following subparagraph for subparagraph (c):

"( c ) ice cream, ice lollipops, water ices, frozen desserts, frozen yoghurts and similar frozen products, and prepared mixes and powders for making any such product or such similar product,",

(iv) in subparagraph (d):

(I) in clause (I) by the insertion after "bakery products" of ", whether cooked or uncooked,", and

(II) in clause (II) by the insertion after "in the course of baking" of ", frying", and

(v) by the substitution of the following subparagraph for subparagraph (e):

"( e ) any of the following when supplied for human consumption without further preparation, namely—

(I) potato crisps, potato sticks, potato puffs and similar products made from potato, or from potato flour or from potato starch,

(II) savoury products made from cereal or grain, or from flour or starch derived from cereal or grain, pork scratchings, and similar products,

(III) popcorn, and

(IV) salted or roasted nuts whether or not in shells;".

(2) The Second Schedule to the Principal Act is hereby further amended—

( a ) by the substitution of the following paragraphs for paragraph (i) (inserted by the Act of 1985):

"(i) The supply of goods—

( a ) subject to a condition that they are to be transported directly by or on behalf of the person making the supply—

(I) outside the Community, or

(II) to a registered person within the customs-free airport,

( b ) dispatched or transported from the State to a person registered for value-added tax in another Member State,

( c ) being new means of transport dispatched or transported directly by or on behalf of the supplier to a person in the territory of another Member State,

( d ) by a registered person within a free port to another registered person within a free port,

( e ) by a registered person within the customs-free airport to another registered person within the customs-free airport or a free port;

( ia ) the supply of goods by tax-free shops, in such amounts and subject to such conditions as may be specified in regulations, to travellers departing the State;",

( b ) in paragraph (iii) by the substitution of "outside the Community" for "outside the State",

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

"(iiia) intra-Community transport services involving the carriage of goods to and from the Azores or Madeira;

(iiib) subject to and in accordance with regulations, the importation of goods which, at the time of the said importation, are consigned to another Member State;",

( d ) in paragraph (vi) (inserted by the Act of 1978):

(i) by the deletion in subparagraph (a) of "from the State",

(ii) by the insertion in subparagraph (b) of "(iiia)" after "(iii)", and

(iii) by the substitution in subparagraph (c) of "Community" for "State",

and

( e ) by the substitution of the following paragraph for paragraph (xvi) (inserted by the Act of 1978):

"(xvi) the supply of services, to a person not established in the Community, consisting of work on movable goods acquired or imported for the purpose of undergoing such work within the Community and subsequently exported;".

Amendment of Third Schedule to Principal Act.

196.—The Third Schedule (inserted by the Act of 1991) to the Principal Act is hereby amended—

( a ) by the substitution in paragraph (ii) of "paragraph (xi) of the Sixth Schedule or paragraph (xi) (b) of the Seventh Schedule" for "paragraphs (xiib) (b) or (xiv) of the Sixth Schedule", and

( b ) by the insertion in subparagraph (a) of paragraph (vi) after "goods" of "(other than in the course of the provision of facilities of the kind specified in paragraph (viia ) of the Sixth Schedule)".

Amendment of Sixth Schedule to Principal Act.

197.—(1) The Sixth Schedule (inserted by the Act of 1985) to the Principal Act is hereby amended in paragraph i—

( a ) by the insertion in subparagraph (b) after "not including" of "gas of a kind specified in subparagraph (bi),", and

( b ) by the insertion of the following subparagraph after subparagraph (b):

"( bi) motor vehicle gas within the meaning of section 42 (1) of the Finance Act, 1976 ,".

(2) The Principal Act is hereby further amended by the substitution of the following Schedule for the Sixth Schedule:

"SIXTH SCHEDULE

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

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

( b ) electricity:

Provided that this subparagraph shall not apply to the distribution of any electricity where such distribution is wholly or mainly in connection with the distribution of communications signals,

( c ) 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 specified in paragraph (i) of the Seventh Schedule, gas of a kind normally used for welding and cutting metals or gas sold as lighter fuel,

( d ) hydrocarbon oil of a kind used for domestic or industrial heating, excluding gas oil (within the meaning of the Hydrocarbon (Heavy) Oil Regulations, 1989 (ST No. 121 of 1989)), other than gas oil which has been duly marked in accordance with Regulation 6 (2) of the said Regulations;

(ii) the provision of food and drink of a kind specified in paragraph (xii) of the Second Schedule in a form suitable for human consumption without further preparation—

( a ) by means of a vending machine,

( b ) in the course of operating a hotel, restaurant, cafe, refreshment house, canteen, establishment licensed for the sale for consumption on the premises of intoxicating liquor, catering business or similar business, or

( c ) in the course of operating any other business in connection with the carrying on of which facilities are provided for the consumption of the food or drink supplied;

(iii) the supply, in the course of the provision of a meal, of goods of a kind specified in subparagraph (c), (d) or (e) of paragraph (xii) of the Second Schedule, and fruit juices other than fruit juices chargeable with a duty of excise—

( a ) in the course of operating a hotel, restaurant, cafe, refreshment house, canteen, establishment licensed for the sale for consumption on the premises of intoxicating liquor, catering business or similar business, or

( b ) in the course of operating any other business in connection with the carrying on of which facilities are provided for the consumption of the food or drink supplied;

(iv) the supply of food and drink (other than beverages specified in subparagraph (a) or (b) of paragraph (xii) of the Second Schedule) which is, or includes, food and drink which—

( a ) has been heated for the purpose of enabling it to be consumed at a temperature above the ambient air temperature, or

( b ) has been retained heated after cooking for the purpose of enabling it to be consumed at a temperature above the ambient air temperature, or

( c ) is supplied, while still warm after cooking, for the purpose of enabling it to be consumed at a temperature above the ambient air temperature,

and is above the ambient air temperature at the time of supply;

(v) promotion of and admissions to cinematographic performances;

(vi) promotion of and admissions to live theatrical or musical performances, excluding—

( a ) dances, and

( b ) performances specified in paragraph (viii) of the First Schedule;

(vii) entertainment services, other than dances and circuses, supplied in fairgrounds by travelling showmen where, in any particular case, the total period spent in any one locality in relation to a series of successive performances does not exceed 19 consecutive days and an interval of at least one month elapses before the next performance in the same locality;

(viii) services consisting of the acceptance for disposal of waste material;

(ix) admissions to exhibitions, of the kind normally held in museums and art galleries, of objects of historical, cultural, artistic or scientific interest, not being services of the kind specified in paragraph (viiia) of the First Schedule;

(x) services supplied in the course of their profession by veterinary surgeons;

(xi) 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.".

(3) The Sixth Schedule to the Principal Act (as amended by this Act) is hereby further amended—

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

"(viia) the provision by a person other than a non-profit making organisation of facilities for taking part in sporting activities;",

and

( b ) in paragraph (xi) by the insertion after subparagraph (a) of the following subparagraph:

"( ai) stock-minding, stock-rearing, farm relief services and farm advisory services (not being services of the kind specified in paragraph (xxii) of the Seventh Schedule),".

Insertion of Seventh Schedule in Principal Act.

198.—The Principal Act is hereby amended by the insertion after the Sixth Schedule (inserted by this Act) of the following Schedule:

"SEVENTH SCHEDULE

Goods and Services Chargeable at the Rate Specified in Section 11(1) (e)

(i) Motor vehicle gas within the meaning of section 42 (1) of the Finance Act, 1976 ;

(ii) every work of art being—

( a ) a painting, drawing or pastel, or any combination thereof, executed entirely by hand, excluding hand-decorated manufactured articles and plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes,

( b ) an original lithograph, engraving, or print, or any combination thereof, produced directly from lithographic stones, plates or other engraved surfaces, which are executed entirely by hand,

( c ) an original sculpture or statuary, excluding mass-produced reproductions and works or craftsmanship of a commercial character, or

( d ) subject to and in accordance with regulations, an article of furniture, silver, glass or porcelain, whether hand-decorated or not, specified in the said regulations, where it is shown to the satisfaction of the Revenue Commissioners to be more than 100 years old, other than goods specified in subparagraph (a), (b) or (c);

(iii) literary manuscripts certified by the Director of the National Library as being of major national importance and of either cultural or artistic importance;

(iv) telecommunications services (including the supply of goods and services incidental thereto) supplied by Bord Telecom Éireann or by any person licensed in accordance with subsection (1) of section 111 of the Postal and Telecommunications Services Act, 1983 , other than services of the kind specified in paragraph (d), (e) or (f) of subsection (3) of section 87 of the said Act;

(v) articles of personal clothing and textile handkerchiefs, excluding—

( a ) articles of clothing made wholly or partly of fur skin, other than garments merely trimmed with fur skin unless the trimming has an area greater than one-fifth of the area of the outside material, and

( b ) articles of personal clothing of a kind specified in paragraphs (xvii) and (xviii) of the Second Schedule;

(vi) ( a ) fabrics, yarn, thread and leather, of a kind normally used in the manufacture of clothing, including elastics, tapes and padding materials in the form supplied for the manufacture of clothing, and

( b ) yarn of a kind normally used in the manufacture of clothing fabrics;

(vii) articles of personal footwear, other than articles of personal footwear of a kind specified in paragraph (xix) of the Second Schedule;

(viii) sole and upper leather of a kind normally used for the manufacture and repair of footwear, and also soles, heels and insoles of any material;

(ix) corrective spectacles and contact lenses, including parts thereof;

( x ) services consisting of—

( a ) the repair or maintenance of movable goods, or

( b ) the alteration of second-hand movable goods, other than such services specified in paragraph (v), (va ) or (xvi) of the Second Schedule, but excluding the provision in the course of any such repair, maintenance or alteration service of—

(I) accessories, attachments or batteries, or

(II) tyres, tyre cases, interchangeable tyre treads, inner tubes and tyre flaps, for wheels of all kinds;

(xi) ( a ) services consisting of work on immovable goods, other than services specified in—

(i) paragraph (xi) of the Sixth Schedule or subparagraph (b),

(ii) paragraph (ii) of the Third Schedule,

( b ) services consisting of the routine cleaning of immovable goods;

(xii) services consisting of the care of the human body, excluding such services specified in the First Schedule, but including services supplied in the course of a health studio business or similar business;

(xiii) services supplied in the course of their profession by jockeys;

(xiv) the supply to a person of photographic prints (other than goods produced by means of a photocopying process), slides or negatives, which have been produced from goods provided by that person;

(xv) goods being—

( a ) photographic prints (other than goods produced by means of a photocopying process), mounted or unmounted, but unframed,

( b ) slides and negatives, and

( c ) cinematographic and video film,

which record particular persons, objects or events, supplied under an agreement to photograph those persons, objects or events;

(xvi) the supply by a photographer of—

( a ) negatives which have been produced from film exposed for the purpose of his business, and

( b ) film which has been exposed for the purposes of his business;

(xvii) photographic prints produced by means of a vending machine which incorporates a camera and developing and printing equipment;

(xviii) services consisting of—

( a ) the editing of photographic, cinematographic and video film, and

( b ) microfilming;

(xix) agency services in regard to a supply specified in paragraph (xiv);

(xx) instruction in the driving of mechanically propelled road vehicles, not being education, training or retraining of the kinds specified in paragraph (ii) of the First Schedule;

(xxi) 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;

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

PART IV STAMP DUTIES

Definitions (Part IV).

199.—In this Part—

"the Act of 1891"' means the Stamp Act, 1891;

"the Commissioners" means the Revenue Commissioners;

"the First Schedule" means the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Act of 1891.

Levy on banks.

200.—(1) In this section—

"assessable amount" means the amount shown as the assessable amount in the statement delivered to the Commissioners pursuant to section 89 of the Finance Act, 1991 ;

"bank" means a person who, on the 1st day of September, 1990, was the holder of a licence granted under section 9 of the Central Bank Act, 1971 , or the successors or assigns of such person.

(2) A bank shall deliver to the Commissioners, not later than the 12th day of September in each of the years 1992, 1993 and 1994, a statement in writing showing the assessable amount for that bank.

(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 ) 0.26 per cent. of that part of the assessable amount shown therein that does not exceed £135,000,000, and

( b ) 0.3865 per cent. of that part of the assessable amount shown therein that exceeds £135,000,000:

Provided that in the case where the assessable amount shown in the statement does not exceed £135,000,000 stamp duty of an amount equal to 0.26 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 Commissioners by a bank such particulars as the 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 12th day of September in each of the years 1992, 1993 and 1994, as the case may be, 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 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) Except as provided for in section 45, 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 (being tax or duty under the care and management of the Commissioners) payable by the bank.

(9) Where a company, which was a bank on the 1st day of September, 1990, and which was or is a member of a group within the meaning of section 45, ceases to be a bank, any stamp duty payable by such company by virtue of subsection (4) and which remains unpaid shall be payable by any other bank which is a member of the group, in the same manner as if it was part of the liability of such bank:

Provided that where there is more than one bank in the group, each such bank shall be liable to pay a portion of such unpaid duty which shall be an amount which bears to the unpaid duty the same proportion as the liability of each bank in the group bears to the total liability of the group, but excluding, in the case of each such liability, such unpaid duty.

Stamp duties, remission of certain penalties.

201.—(1) This section shall apply to an instrument which—

( a ) was first executed before the 1st day of November, 1991, and

( b ) was unstamped or insufficiently stamped on the 30th day of January, 1992.

(2) Where an instrument to which this section applies is delivered for stamping to the Commissioners together with the unpaid duty—

( a ) on or before the 30th day of June, 1992, such instrument shall be stamped without payment of penalty, or

( b ) on or after the 1st day of July, 1992, but on or before the 30th day of September, 1992, such instrument shall be stamped on payment of a penalty calculated as if the instrument was first executed on the 1st day of June, 1992.

(3) Where an instrument to which this section applies is delivered to the Commissioners together with unpaid duty which is insufficient, or is found to be insufficient, by virtue of the revaluation of property to which the instrument relates or for any other reason, then—

( a ) the provisions of subsection (2) (a) shall apply to any additional duty paid if it is paid on or before the 30th day of June, 1992,

( b ) the provisions of subsection (2) (b) shall apply to any additional duty paid if it is paid on or after the 1st day of July, 1992, but on or before the 30th day of September, 1992.

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

202.— Section 17 of the Finance (No. 2) Act, 1981 , is hereby amended with effect as on and from the 1st day of February, 1992—

( a ) by the substitution of "£15" for "£10" (inserted by the Finance Act, 1984 ) in subsection (1)(c),

( b ) by the substitution of "£7.50" for "£5" (as so inserted) in subsection (2)(c), and

( c ) by the substitution of "£15" for "£10" (as so inserted) in paragraph (d)(ii) (inserted by the Finance Act, 1983 ) of subsection (2).

Stamp duty in respect of cash cards.

203.—(1) In this section—

"accounting period" has the same meaning as it has for the purposes of section 9 of the Corporation Tax Act, 1976 ;

"bank" means a person who, on the 15th day of June in any year (being the year 1992 or a subsequent year), holds a licence granted under section 9 of the Central Bank Act, 1971 ;

"building society" means a building society which, on the 15th day of June in any year (being the year 1992 or a subsequent year), stands incorporated, or deemed by section 124 (2) of the Building Societies Act, 1989 , to be incorporated, under that Act and includes a company registered under section 106 of that Act;

"card account" means an account maintained by a promoter to which amounts of cash obtained by a person by means of a cash card are charged;

"cash card" means a card issued by a promoter to a person having an address in the State by means of which cash may be obtained, in the State by the person from an automated teller machine;

"date of publication" means the date of publication of the Finance Bill, 1992;

"due date" means—

( a ) in the case of the year 1992, the 1st day of September, or the date of the end of the accounting period ending in 1992, whichever is the later, and

( b ) in the case of the year 1993 and each subsequent year, the date of the end of the accounting period ending in that year;

"promoter" means a bank or a building society.

(2) A promoter shall, within one month of the due date, deliver to the Commissioners a statement in writing showing the number of cash cards issued at any time by the promoter and which are valid—

( a ) in the case of the year 1992, at any time during the period from the date of publication to the due date, and

( b ) in the case of the year 1993, at any time during the period from—

(i) the 1st day of September, 1992, or

(ii) the date of the end of the accounting period ending in the year 1992, if it falls after the 1st day of September, 1992

to the due date, and

( c ) in the case of the year 1994 and each subsequent year, at any time during the accounting period ending in that year:

Provided that—

(I) if the cash card is not used at any time during any of the periods referred to in paragraph (a), (b) or (c), or

(II) if the cash card is issued in respect of a card account—

(A) which is a deposit account, and

(B) the average of the daily positive balances in the account does not exceed £10 in any of the periods referred to in paragraph (a), (b) or (c),

then it shall not be included in the statement relating to such period.

(3) There shall be charged on every statement delivered in pursuance of subsection (2) a stamp duty at the rate of £2 in respect of each card included in the number of cards shown in the statement.

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

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

(6) In the case of failure by a promoter 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 promoter shall be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 1.25 per cent. per month or part of a month from the date to which the statement relates (hereinafter referred to as the due date) to the date on which the duty is paid and also, by way of further penalty, a sum of £300 for each day the duty remains unpaid after the expiration of one month from the due date 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 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) A promoter shall be entitled to charge to the card account the amount of stamp duty payable in respect of the cash card by virtue of this section and may apply the terms and conditions governing that account to interest on that amount.

(9) An account, charge card, company charge card or supplementary card within the meaning, in each case, assigned to it by section 17 of the Finance (No. 2) Act, 1981 , and which attracts the payment of the stamp duty payable by virtue of the provisions of that section shall not attract the payment of the stamp duty payable by virtue of the provisions of this section.

Stamp duties on miscellaneous instruments.

204.—As respects instruments executed on or after the 1st day of February, 1992—

( a ) the First Schedule, other than the Heading "CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities." and the Heading "LEASE",

( b ) sections 56, 59, 62 and 106 of the Stamp Act, 1891,

( c ) section 9 of the Finance Act, 1902,

( d ) section 42 of the Finance Act, 1920, and

( e ) section 30 of the Finance Act, 1961 ,

are hereby amended by the substitution of "£10" for "£5" (inserted by the Finance Act, 1982 ) in each place where it occurs.

Amendment of First Schedule.

205.—(1) The Heading set out in Part I of the Seventh Schedule to this Act is hereby substituted for the Heading "CONVEYANCE or TRANSFER on sale of any stocks or marketable securities. " (inserted by the Finance Act, 1990 ) in the First Schedule.

(2) The Heading set out in Part II of the Seventh Schedule to this Act is hereby inserted after the Heading "CONVEYANCE or TRANSFER on sale of any stocks or marketable securities." and before the Heading "CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities." in the First Schedule.

(3) The Heading set out in Part III of the Seventh Schedule to this Act is hereby substituted for the Heading "CONVEYANCE or TRANSFER of any kind not hereinbefore described" (as amended by the Finance Act, 1982 ) in the First Schedule.

(4) The Heading set out in Part IV of the Seventh Schedule to this Act is hereby substituted for the Heading "DEED of any kind whatsoever, not described in this Schedule (other than an award, a charter-party or an agreement or contract made or entered into pursuant to the Highways Acts for or relating to the making, maintaining or repairing of highways)." (as amended by the Finance Act, 1982 ) in the First Schedule.

(5) The Heading set out in Part V of the Seventh Schedule to this Act is hereby substituted for the Heading "MORTGAGE, BOND, DEBENTURE, COVENANT (except a marketable security) and WARRANT OF ATTORNEY to confess and enter up judgment." (inserted by the Finance Act, 1991 ) in the First Schedule.

(6) The First Schedule is hereby amended by the deletion of the following Headings and provisions thereto, that is to say:

( a ) "BOND, COVENANT, or INSTRUMENT of any kind whatsoever" (inserted by the Finance Act, 1991 ),

( b ) "BOND of any kind whatsoever not specifically charged with any duty or specifically exempted from any duty." (as amended by the Finance Act, 1982 ), and

( c ) "WARRANT OF ATTORNEY to confess and enter up a judgment given as a security for the payment or repayment of money, or for a transfer or retransfer of stock." (inserted by the Finance Act, 1970 ).

(7) The First Schedule is hereby amended by the insertion of the words "or a policy of insurance or a policy of life insurance." after the word "securities" in the Heading "CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities." (inserted by the Finance Act, 1990 ).

(8) The First Schedule is hereby amended by the insertion of the words "which relates to immovable property situated in the State or to any right over or interest in such property." after the word "described" in Paragraph (5) of the Heading "LEASE' (inserted by the Finance Act, 1991 ).

(9) The First Schedule is hereby amended by the insertion in each of the following Headings (inserted by the Finance Act, 1982 ) of the words "where the risk to which the policy relates is located in the State" after—

( a ) the word "INSURANCE" in the Heading "POLICY OF LIFE INSURANCE",

( b ) the word "years" in the Heading "POLICY OF LIFE INSURANCE made for a period not exceeding two years", and

( c ) the word "Insurance" in the Heading "POLICY OF INSURANCE other than Life Insurance.".

(10) Subject to the provisions of section 4 of the Act of 1891, any instrument which, in respect of a particular provision it contains, would, but for subsection (3), (4), (5) or (6), be chargeable to stamp duty under any of the Headings referred to in those subsections, shall not be chargeable with stamp duty in respect of that provision under any other Heading in the First Schedule.

Exemption from stamp duty of certain stocks and marketable securities.

206.—Stamp duty shall not be chargeable on any conveyance or transfer of—

( a ) units in a collective investment undertaking within the meaning of section 18 of the Finance Act, 1989 , or

( b ) units of a unit trust to which subsection (5A) (inserted by section 34 of the Finance Act, 1977 ) of section 31 of the Capital Gains Tax Act, 1975 , relates, or

( c ) stocks or marketable securities of a company which is not registered in the State and which are dealt in and quoted on a recognised stock exchange:

Provided that such conveyance or transfer of stocks or marketable securities does not relate to—

(i) any immovable property situated in the State or any right over or interest in such property, or

(ii) any stocks or marketable securities of a company having a register in the State.

Exemption from stamp duty of certain financial services instruments.

207.—(1) In this section

"commodities" means tangible assets (other than currency, securities, debts or other assets of a financial nature) which are dealt in on a recognised commodity exchange;

"debt factoring agreement" means an agreement for the sale, or a transfer on sale, of a debt or part of a debt where such sale occurs in the ordinary course of the business of the vendor or the purchaser;

"depositary" means a person who holds stocks or marketable securities, which are dealt in and quoted on a recognised stock exchange, in trust for or on behalf of holders of depositary receipts and who maintains a register of ownership of such depositary receipts;

"American depositary receipt" means an instrument—

( a ) which acknowledges—

(i) that a depositary or a nominee acting on his behalf, holds stocks or marketable securities which are dealt in and quoted on a recognised stock exchange, and

(ii) that the holder of the instrument has rights in or in relation to such stocks or marketable securities including the right to receive such stocks or marketable securities from the depositary or his nominee,

and

( b ) which—

(I) is dealt in and quoted on a recognised stock exchange which is situated in the United States of America, or

(II) represents stocks or marketable securities which are so dealt in and quoted;

"financial futures agreement" means a forward agreement which is for the time being dealt in and quoted on a recognised futures exchange or a recognised stock exchange;

"forward agreement" means—

( a ) an agreement under which a party to the agreement agrees—

(i) to buy or sell commodities, currency, stocks or marketable securities, or

(ii) to pay or receive a sum of money (whether or not such money is actually paid or received),

at a specified date or within a specified or determinable period of time and pursuant to which the price or currency exchange rate concerned or, in the case of a sum of money, the interest (if any) payable, or expressed to be payable, thereon is determined or determinable at the time of the execution of the agreement, or

( b ) an agreement conferring the right to receive certain payments and imposing the liability to make certain payments, the receipt and making of the payments being dependent on and related to certain movements in a specified stock exchange index or specified stock exchange indices;"

"option agreement means an agreement under which a right is conferred on a party to the agreement to do, at the party's discretion, either or both of the following, that is to say:

( a ) to buy from or sell to or buy from and sell to another party to the agreement—

(i) specified stocks, marketable securities, commodities or currency,

(ii) an agreement conferring the right to receive certain payments and imposing the liability to make certain payments, the receipt and making of the payments being dependent on and related to certain movements in a specified stock exchange index or specified stock exchange indices,

on or before a specified date at a price that is determined or determinable at the time of the execution of the agreement,

( b ) to borrow money from or lend money to another party to the agreement for or within a specified period in consideration of the payment of interest by the party by whom the money is borrowed or to whom it is lent to the other party concerned at a rate that is determined or determinable at the time of the execution of the agreement;

"swap agreement" means an agreement under which the parties thereto exchange payments or repayments of money in respect of which such parties have obligations or rights and which are denominated in a specified currency or are subject to the payment of a specified rate of interest or relate to the price of specified commodities, stocks or marketable securities, for payments or repayments of the same kind which are denominated in another specified currency or are subject to the payment of a specified different rate of interest or relate to the price of other specified commodities, stocks or marketable securities.

(2) Stamp duty shall not be chargeable on any instrument which is—

( a ) a debt factoring agreement, or

( b ) a swap agreement, or

( c ) a forward agreement, or

( d ) a financial futures agreement, or

( e ) an option agreement, or

( f ) a combination of any two or more of the instruments specified in paragraphs (a) to (e), or

( g ) a transfer of, or an agreement to transfer—

(i) any instrument specified in paragraphs (a) to (e), or a combination of any two or more such instruments, or

(ii) a lease, other than a lease to which any Heading in the First Schedule applies, or

(iii) an American depositary receipt:

Provided that such instrument, other than an instrument which is a transfer of, or an agreement to transfer, an American depositary receipt, does not relate to—

(I) immovable property situated in the State or any right over or interest in such property, or

(II) the stocks or marketable securities of a company having a register in the State.

(3) Notwithstanding that, in respect of any particular provision it contains, an instrument is exempt from stamp duty under the provisions of this section, if the instrument is liable to stamp duty in respect of any other provision it contains under any Heading in the First Schedule, the instrument shall be chargeable with the latter stamp duty.

Location of insurance risk for stamp duty purposes.

208.—For the purpose of charging stamp duty, the risk to which a policy of insurance or a policy of life insurance relates shall be deemed to be located in the State—

( a ) where the insurance relates either to buildings or to buildings and their contents, in so far as the contents are covered by the same insurance policy, if the property is situated in the State;

( b ) where the insurance relates to vehicles of any kind, if such vehicles are registered in the State;

( c ) in the case of policies of a duration of four months or less covering travel or holiday risks, if the policyholder took out the policy in the State;

( d ) in any other case, if the policyholder has his habitual residence in the State.

Exemption from stamp duty of certain instruments relating to foreign immovable property.

209.—Notwithstanding the provisions of section 1 of the Act of 1891 and the provisions of the First Schedule, stamp duty shall not be chargeable on any instrument which is a conveyance, transfer, assignment, lease or licence of any immovable property situated outside the State:

Provided that such instrument does not relate to—

( a ) any immovable property situated in the State, or any right over or interest in such property, or

( b ) any stocks or marketable securities of a company having a register in the State.

Exemption from stamp duty of certain instruments of National Treasury Management Agency and of Minister for Finance.

210.—Stamp duty shall not be chargeable on any instrument executed by or on behalf of—

( a ) the National Treasury Management Agency, or

( b ) the Minister for Finance in relation to a function exercised by him which is capable of being delegated to the said Agency under section 5 of the National Treasury Management Agency Act, 1990 ,

or on any disposition of such an instrument or of any right or interest created by such an instrument.

Revocation (Part IV).

211.—The Stamp Duty (Variation) Order, 1991 ( S.I. No. 277 of 1991 ), is hereby revoked.

Provisions relating to exemption from stamp duty on transfers by spouses.

212.—(1) For the avoidance of doubt it is hereby declared that section 114 of the Finance Act, 1990 , applies only in respect of property transferred from either or both spouses to either or both of them and which does not involve the transfer of any part of, or beneficial interest in, such property to another person.

( 2 ) ( a ) Section 74 (2) of the Finance (1909-10) Act, 1910, shall not apply to a transfer to which section 114 of the Finance Act, 1990 , or section 14 of the Family Home Protection Act, 1976 , applies.

( b ) This subsection shall be deemed to have come into operation on the 30th day of May, 1990.

Procedure to apply where consideration etc. cannot be ascertained.

213.—The Finance Act, 1991 , is hereby amended by the substitution of the following section for section 104:

"104.—(1) Where—

( a ) the consideration for a sale, or

( b ) the average annual rent or consideration other than rent for a lease,

cannot be ascertained at the date of execution of a conveyance or lease and such consideration or rent would, if ascertainable, be chargeable with ad valorem duty in respect of such sale or lease, then stamp duty shall be charged on such sale or lease based on the amount or value of the consideration or rent that could be obtained from a purchaser or tenant paying full consideration or rent for such sale or lease.

(2) Where, in the case of a lease to which the provisions of subsection (1) would apply but for the fact that both the rent and the consideration other than rent payable cannot be ascertained, then stamp duty shall be charged on such lease based on the amount or value of the consideration other than rent that could be obtained from a tenant paying full consideration for such lease if the rent reserved in the lease was a nil amount.

( 3 ) ( a ) The provisions of subsection (2) and (3) of section 56 of the Act of 1891 shall not apply to any instrument in relation to which subsection (1) applies.

( b ) The provisions of this section shall not apply to any instrument in relation to which subsection (3) (a) of section 112 of the Finance Act, 1990 , applies.".

Amendment of section 45 (relief from certain duties (adopted children)) of Finance Act, 1972 .

214.— Section 45 of the Finance Act, 1972 , is hereby amended in subsection I—

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

"( a ) a child has been adopted under a foreign adoption (being a foreign adoption within the meaning of section 1 of the Adoption Act, 1991 ) which is deemed under the Adoption Acts, 1952 to 1991, to have been effected by a valid adoption order, and",

and

( b ) by the substitution in paragraph (b) of "the Adoption Acts, 1952 to 1991," for "the Adoption Acts, 1952 and 1964,".

Repeal of certain provisions relating to Governor and Company of the Bank of Ireland.

215.—(1) The following provisions are hereby repealed, to the extent that they grant an exemption from stamp duty to transfers of any stocks or marketable securities of the Governor and Company of the Bank of Ireland, that is to say:

( a ) section 7 of the pre-Union Irish Statute entitled "An Act to enable the proprietors of debentures issued by Government, to convert them into stock, transferable at the Bank of Ireland" (37 Geo. 3, c. 54) and passed in the year 1797, and

( b ) section 4 of the Bank of Ireland Act, 1821.

(2) Except in the case of a transfer which relates to a purchase of stocks or marketable securities which occurred prior to the 27th day of April, 1992, the provisions of this section shall apply to any transfer of the stocks or marketable securities of the Governor and Company of the Bank of Ireland which occurs on or after that date.

Exemption from stamp duty of certain instruments (Temple Bar Properties Limited).

216.—(1) No stamp duty shall be chargeable on any instrument under which any land, or any interest therein, easement, way-leave, water right or any other right is acquired in the Temple Bar area by Temple Bar Properties Limited, or any subsidiary thereof.

(2) For the purposes of this section, a company shall be deemed to be a subsidiary of Temple Bar Properties Limited if—

( a ) Temple Bar Properties Limited—

(i) is a member of the company and controls the composition of at least half of the company's board of directors, or

(ii) holds at least half in nominal value of the company's equity share capital, or

(iii) holds at least half in nominal value of the company's shares carrying voting rights (other than voting rights which arise only in specified circumstances),

( b ) the company is a subsidiary of any company which is a subsidiary of Temple Bar Properties Limited.

(3) In this section "the Temple Bar area" means "the area" as described in the First Schedule in the Temple Bar Area Renewal and Development Act, 1991 .

(4) Section 18 of the Temple Bar Area Renewal and Development Act, 1991 , is hereby repealed.

(5) This section shall have effect with respect to instruments executed on or after the 15th day of July, 1991.

Amendment of section 44 (exemption from stamp duty of certain stock) of Finance Act, 1970 .

217.— Section 44 (as amended by section 71 of the Finance Act, 1989 ) of the Finance Act, 1970 , is hereby amended by the insertion of ", Bord Gáis Éireann" after "Bord Telecom Éireann".

PART V RESIDENTIAL PROPERTY TAX

Application (Part V).

218.—This Part shall apply and have effect where tax is chargeable on a valuation date (as defined by section 95 (1) of the Finance Act, 1983 ) in relation to any year commencing with the year 1992.

Amendment of section 100 (market value exemption limit) of Finance Act, 1983 .

219.— Section 100 of the Finance Act, 1983 , is hereby amended in subsection (1) (as amended by the Finance Act, 1990 ) -

( a ) by the substitution in the definition of "general exemption limit of "£90,000" for "£65,000" and of "1992" for "1983", and

( b ) by the substitution in the definition of "the new house price index number" of "1980" for "1973", and the said definitions, as so amended, are set out in the Table to this section.

TABLE

"general exemption limit" means the general market value exemption limit applying on a valuation date, that is to say, the amount obtained by multiplying £90,000 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, 1992:

Provided that the amount so obtained shall be rounded up to the next £1,000;

"the new house price index number" means the Trends in Private New House Price 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 December 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, 1980, is 100.

Amendment of section 101 (income exemption limit) of Finance Act, 1983 .

220.— Section 101 of the Finance Act, 1983 , is hereby amended—

( a ) by the substitution in subsection (2) (inserted by the Finance Act, 1990 ) of "£27, 500" for "£20,000" and of "1992" for "1983", and

( b ) by the substitution in subsection (3) of "1989" for "1982",

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

TABLE

(2) The income exemption limit applying on a valuation date is the amount obtained by multiplying £27,500 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, 1992:

Provided that the amount so obtained shall be rounded up to the next £100.

(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 the valuation date expressed on the basis that the consumer price index at mid-November, 1989, is 100.

Amendment of section 102 (marginal reliefs) of Finance Act, 1983 .

221.— Section 102 of the Finance Act, 1983 , is hereby amended by the substitution in subsection (4) (inserted by the Finance Act, 1990 ) of the following paragraph for paragraph (b) of the interpretation of the word "child":

"( b ) a child—

(i) adopted under the Adoption Acts, 1952 to 1991, or

(ii) adopted under a foreign adoption which by virtue of section 2 , 3 , 4 or 5 of the Adoption Act, 1991 , is deemed to have been effected by a valid adoption order within the meaning of section 1 of that Act,

and,

and the said interpretation, as so amended, is set out in the Table to this section.

TABLE

"child", in relation to an assessable person, includes—

( a ) a stepchild,

( b ) a child-

(i) adopted under the Adoption Acts, 1952 to 1991, or

and

( c ) a person who, for the year of assessment ending on the valuation date, is in the custody, and maintained at the expense, of either or both the assessable person and the spouse of that as sessable person;

PART VI CAPITAL ACQUISITIONS TAX

Interpretation (Part VI).

222.—In this Part "the Principal Act" means the Capital Acquisitions Tax Act, 1976 .

Amendment of section 2 (interpretation) of Principal Act.

223.—(1) Section 2 of the Principal Act (as amended by the Finance Act, 1989 ) is hereby amended by the substitution of the following for the interpretation of the word "child" in subsection (1):

"'child' includes

( a ) a stepchild;

( b ) a child adopted—

(i) under the Adoption Acts, 1952 to 1991; or

(ii) under a foreign adoption which by virtue of section 2 , 3 , 4 or 5 of the Adoption Act, 1991 , is deemed to have been effected by a valid adoption order within the meaning of section 1 of that Act;".

(2) This section shall have effect in relation to gifts and inheritances taken on or after the 30th day of May, 1991.

Amendment of section 106 (acquisitions by discretionary trusts) of Finance Act, 1984 .

224.—(1) Section 106 of the Finance Act, 1984 , is hereby amended—

( a ) in subsection (1) (as amended by the Finance Act, 1985 ), by the substitution of "21 years" for "25 years" in paragraph (c), and

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

"(2A) Property which, under or in consequence of any disposition, is subject to a discretionary trust on the 31st day of January, 1993, shall, for the purposes of subsection (1), be deemed to become subject to the trust on that date.".

(2) Subsection (1)(a) shall have effect in relation to property which becomes subject to a discretionary trust on or after the 31st day of January, 1993.

Amendment of section 102 (interpretation (Part V)) of Finance Act, 1986 .

225.—(1) The definition of "chargeable discretionary trust" in section 102 of the Finance Act, 1986 , is hereby amended by the substitution of "21 years" for "25 years" in paragraph (b).

(2) This section shall have effect in relation to any chargeable date occurring on or after the 5th day of April, 1994.

PART VII ANTI-AVOIDANCE AND ANTI-EVASION

Returns of certain information.

226.—(1) In this section—

"appropriate inspector" means, in relation to a person to whom this section applies—

( a ) the inspector who has last given notice in writing to that person that he is the inspector to whom the person is required to deliver the return specified in subsection (3),

( b ) where there is no such inspector as is referred to in paragraph (a), the inspector to whom it is customary for the person to deliver a return or statement of income or profits, or

( c ) where there is no such inspector as is referred to in paragraphs (a) and (b), the inspector of returns specified in section 9 of the Finance Act, 1988 ;

"chargeable period" has the same meaning as it has in paragraph 1 of the First Schedule to the Corporation Tax Act, 1976 ;

"relevant chargeable period" means—

( a ) where the chargeable period is a year of assessment, the year 1992-93 and any subsequent year of assessment, or

( b ) where the chargeable period is an accounting period of a company, an accounting period ending on or after the 6th day of April, 1993;

"relevant person" has the meaning assigned to it by subsection (2);

"specified provisions" means—

( a ) sections 94 (d) (as amended by section 227), 173 (as so amended), 175 and 176 (as so amended) of the Income Tax Act, 1967 ,

( b ) section 21 of the Finance Act, 1983 , and

( c ) section 19 of the Finance Act, 1989 ;

"specified return date for the chargeable period", in relation to a relevant chargeable period, means—

( a ) where the chargeable period is a year of assessment, the 31st day of January in the year of assessment following that year, and

( b ) where the chargeable period is an accounting period of a company, the last day of the period of 9 months commencing on the day immediately following the end of the accounting period.

( 2 ) ( a ) Subject to the other provisions of this subsection, in this section "relevant person" means any person who—

(i) has information of a kind,

(ii) makes a payment of a kind,

(iii) pays or credits interest of a kind, or

(iv) is in receipt of money or value or of profits or gains of a kind,

referred to in a specified provision.

( b ) Subject to the provisions of paragraph (e), any person who would be excluded from making a return under a specified provision for a relevant chargeable period shall not be a relevant person.

( c ) A person with information of the kind referred to in section 21 of the Finance Act, 1983 , shall, subject to the provisions of paragraph (e), be a relevant person only where he is not the beneficial owner of the securities referred to in the said section 21.

( d ) A person with information of the kind referred to in section 19 of the Finance Act, 1989 , shall, subject to the provisions of paragraph (e), be a relevant person only where he is an intermediary for the purposes of the said section 19.

( e ) A person who is not a relevant person by virtue of any of the provisions of paragraphs (b) to (d) is not excluded from being a relevant person by virtue of any other provision of this subsection.

(3) Every relevant person shall, as respects a relevant chargeable period, prepare and deliver to the appropriate inspector, on or before the specified return date for the chargeable period, a return of all such matters and particulars as would be required to be contained in a return delivered pursuant to a notice given to the relevant person by the appropriate inspector, under any of the specified provisions, for the relevant chargeable period.

(4) An inspector may exclude any person from the provisions of this section by giving him a notice in writing that he is excluded from those provisions and the notice shall have effect for such chargeable period or periods or until such chargeable period or the happening of such event as shall be specified in the notice.

(5) Where it appears appropriate to an inspector, he may notify any relevant person that a return to be made under the provisions of this section may be confined to a particular type or category of information, payment or receipt and, where the relevant person has been so notified, a return made on that basis shall satisfy the provisions of this section.

(6) This section shall not affect the giving of a notice under any of the specified provisions and shall not remove from any person any obligation or requirement imposed on a person by such a notice and the giving of a notice under any of the specified provisions to a person shall not remove from that person any obligation to prepare and deliver a return under the provisions of this section.

(7) Sections 500 and 503 of the Income Tax Act, 1967 , shall apply to a failure by a relevant person to deliver a return required by subsection (3), and to each and every such failure, as they apply to a failure to deliver a return referred to in the said section 500 and Schedule 15 to that Act is hereby amended by the insertion in Column 2 of "Finance Act, 1992 , section 226 (3).".

Supplemental provisions to section 226.

227.—The Income Tax Act, 1967 , is hereby amended—

( a ) in section 94 by the substitution of the following paragraph for paragraph (d):

"( d ) any person who as an agent manages premises or is in receipt of rent or other payments arising from premises to prepare and deliver to the inspector a return containing—

(i) the full address of all such premises,

(ii) the name and address of every person to whom such premises belong,

(iii) a statement of all rents and other such payments arising from such premises, and

(iv) such other particulars relating to all such premises as may be specified in the notice.",

( b ) in section 173—

(i) by the insertion, in subsection (2), of "(which, for the purposes of this section, shall be deemed to include a Minister of the Government and any body established by or under statute)" after the term "body of persons", where it first occurs, and the said subsection (2), other than paragraphs (a) and (b), as so amended, is set out in the Table to this section,

(ii) by the insertion, in subsection (4), of "and tax reference number" after the word "name" where it first occurs, and the said subsection (4), as so amended, is set out in the Table to this section,

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

"(4A) A return under this section shall include payments made by the person or body of persons in the course of the said trade, business or activity on behalf of any other person.",

(iv) by the substitution, in paragraph (b) of subsection (5), of "£500" for "£15", and the said paragraph (b), as so amended, is set out in the Table to this section,

and

(v) by the substitution of the following subsection for subsection (10):

"(10) ( a ) In this section—

(i) references to payments for services include references to payments in the nature of commission of any kind and references to payments in respect of expenses incurred in connection with rendering of services, and

(ii) references to the making of payment include references to the giving of any valuable consideration, and the requirement imposed by subsection (4) to state the amount of a payment shall, in relation to any consideration given otherwise than in the form of money, be construed as a requirement to give particulars of the consideration.

( b ) In this section 'tax reference number' in relation to a person, has the same meaning as is assigned to it in section 22 of the Finance Act, 1983 , in relation to a specified person within the meaning of that section.",

and

( c ) in section 176, by the addition of the following subsection after subsection (1):

"(1A) No person shall be required under this section to include in a return particulars of receipts (to which subsection (1) applies) of or belonging to any one person where the total of the receipts relating to that person which would otherwise fall to be included in the return does not exceed £500.".

TABLE

(2) Every body of persons (which, for the purposes of this section, shall be deemed to include a Minister of the Government and any body established by or under statute) carrying on any activity which does not constitute a trade or business shall, if required to do so by a notice from an inspector, make and deliver to the inspector a return of all payments of a kind specified in the notice made during a period so specified, being—

(4) A return under this section shall give the name and tax reference number (as defined in section 22 of the Finance Act, 1983 ) of the person to whom each payment was made, the amount of the payment and such other particulars (including particulars as to the services or rights in respect of which the payment was made, the period over which any services were rendered and any business name or home address of the person to whom the payment was made) as may be specified in the notice.

( b ) particulars of payments made to any one person where the total of the payments to that person which would otherwise fall to be included in the return does not exceed £500, or

Inspector's right to make enquiries.

228.—(1) In this section—

"specified provisions" means—

( a ) sections 94 (d), 173 and 176 (as amended respectively by section 227) of the Income Tax Act, 1967 ,

( b ) section 21 of the Finance Act, 1983 ,

( c ) section 19 (as amended by section 229) of the Finance Act, 1989 , and

( d ) section 226.

(2) An inspector may make such enquiries or take such action, within his powers, as he considers necessary to satisfy himself as to the accuracy or otherwise of any return, list, statement or particulars prepared and delivered under a specified provision.

(3) Subsection (2) shall not apply in respect of a return made under section 226 of such matters and particulars as would be required to be contained in a return delivered pursuant to a notice given to a relevant person by the appropriate inspector under section 175 of the Income Tax Act, 1967 , for the relevant chargeable period.

Amendment of section 19 (returns by certain intermediaries in relation to UCITS) of Finance Act, 1989 .

229.—As respects relevant facilities provided by an intermediary on or after the 1st day of June, 1992, section 19 of the Finance Act, 1989 , is hereby amended—

( a ) by the insertion, in subsection (1), of the following definition after the definition of "relevant UCITS":

" 'tax reference number', in relation to a person, has the same meaning as is assigned to it in section 22 of the Finance Act, 1983 , in relation to a specified person within the meaning of that section;",

( b ) by the insertion, in paragraph (a) of subsection (2), after "addresses" of "and tax reference numbers", and

( c ) by the substitution of the following subsections for subsection (3):

"(3) Where a person who is resident in the State avails of relevant facilities provided by an intermediary in relation to relevant UCITS he shall furnish to the intermediary details which the intermediary is required to include in a return to the inspector in accordance with subsection (2), or would be required to include in such a return if a notice under the subsection were served on the intermediary, and the intermediary shall take all reasonable care (including, where necessary, the requesting of documentary evidence) to confirm that the details furnished are true and correct.

(4) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion—

( a ) in column 2 of ' Finance Act, 1989 , section 19 (2)', and

( b ) in column 3 of ' Finance Act, 1989 , section 19 (3)'.

and the said paragraph (a) (apart from subparagraphs (i), (ii) and (iii) thereof), as so amended, is set out in the Table to this section.

TABLE

( a ) the names and addresses and tax reference numbers of all persons resident in the State in respect of whom the intermediary has in the course of providing relevant facilities in relation to a relevant UCITS during such period as shall be specified in the notice—

Returns in relation to foreign accounts.

230.—(1) In this section—

"appropriate inspector", in relation to an intermediary or, as may be appropriate, a resident, means—

( a ) the inspector who has last given notice in writing to the intermediary or, as the case may be, the resident that he is the inspector to whom the intermediary or, as the case may be, the resident is required to deliver a return or statement of income or profits,

( b ) where there is no such inspector as is referred to in paragraph (a), the inspector to whom it is customary for the intermediary or, as the case may be, the resident to deliver such return or statement, or

( c ) where there is no such inspector as is referred to in paragraphs (a) and (b), the inspector of returns specified in section 9 of the Finance Act, 1988 ;

"chargeable period" has the same meaning as in paragraph 1 of the First Schedule to the Corporation Tax Act, 1976 ;

"deposit" means a sum of money paid to a person on terms under which it will be repaid with or without interest and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person to whom it is made;

"foreign account" means an account in which a deposit is held at a location outside the State;

"intermediary" means any person carrying on in the State a trade or business in the ordinary course of the operations of which he provides a relevant service;

"relevant chargeable period" means—

( a ) where the chargeable period is a year of assessment, the year 1992-93 and any subsequent year of assessment, or

( b ) where the chargeable period is an accounting period of a company, an accounting period ending on or after the 1st day of June, 1992;

"relevant person" means a person who in the normal course of his trade or business receives or holds deposits;

"relevant service" means the acting in the State as an intermediary in or in connection with the opening of foreign accounts with relevant persons by or on behalf of residents;

"resident" means a person resident in the State;

"specified return date for the chargeable period", in relation to a relevant chargeable period, means—

( a ) where the chargeable period is a year of assessment, the 31st day of January in the year of assessment following that year, and

( b ) where the chargeable period is an accounting period of a company, the last day of the period of 9 months commencing on the day immediately following the end of the accounting period;

"tax reference number", in relation to a resident, has the same meaning as is assigned to it in section 22 of the Finance Act, 1983 , in relation to a specified person within the meaning of that section.

(2) Every intermediary shall, as respects a relevant chargeable period, prepare and deliver to the appropriate inspector, on or before the specified return date for the said chargeable period, a return specifying, in respect of every resident in respect of whom he has acted in the chargeable period as an intermediary in the opening of a foreign account—

( a ) the full name and permanent address of the resident,

( b ) the resident's tax reference number,

( c ) the full name and address of the relevant person with whom the foreign account was opened,

( d ) the date on which the foreign account was opened, and

( e ) the amount of the deposit made in opening the foreign account.

(3) Where a resident requests an intermediary to provide him with a relevant service he shall furnish to the intermediary the details which the intermediary is required to include in the return to the appropriate inspector in accordance with subsection (2) and the intermediary shall take all reasonable care (including, where necessary the requesting of documentary evidence) to confirm that the details furnished are true and correct.

( 4 ) ( a ) Where an intermediary fails—

(i) for any relevant chargeable period, to make a return required to be made by him in accordance with subsection (2),

(ii) to include in such a return for a relevant chargeable period details of any resident to whom he provided a relevant service in that chargeable period, or

(iii) to take reasonable care to confirm the details of the kind referred to in subsection (2) furnished to him by a resident to whom he has provided a relevant service in a relevant chargeable period,

he shall, in respect of each such failure, be liable to a penalty of £2,000.

( b ) Where a resident fails—

(i) to furnish details of the kind referred to in subsection (2) to an intermediary who has provided him with a relevant service, or

(ii) knowingly or wilfully furnishes that intermediary with incorrect details of the said kind,

he shall be liable to a penalty of £2,000.

(5) All penalties under subsection (4) may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any fine or penalty under any Act relating to the excise

(6) Where, in a relevant chargeable period, a resident opens, either directly or indirectly, a foreign account, or causes to be opened a foreign account in relation to which he is the beneficial owner of the deposit held in that account, he shall, notwithstanding anything to the contrary in section 48 of the Finance Act, 1986 , or section 9 of the Finance Act, 1988 , be deemed, for that relevant chargeable period, to be a chargeable person for the purposes of section 48 of the Finance Act, 1986 , and section 10 of the Finance Act, 1988 , and the return of income (within the meaning of the said section 48) to be delivered by him for that chargeable period shall include the following particulars in relation to the account, that is to say—

( a ) the name and address of the relevant person with whom the account was opened,

( b ) the date on which the account was opened,

( c ) the amount of the deposit made in opening the account, and

( d ) the name and address of the intermediary, if any, who provided a relevant service in relation to the opening of the account.

(7) This section shall apply and have effect as respects foreign accounts opened on or after the 1st day of June, 1992.

Obligation to keep certain records.

231.—Part I of the Finance Act, 1968 , is hereby amended by the substitution of the following section for section 6:

"6.— (1) In this section—

'linking documents' means documents that are drawn up in the making up of accounts and which show details of the calculations linking the records to the accounts;

'records' includes accounts, books of account, documents and any other data maintained manually or by any electronic, photographic or other process, relating to—

( a ) all sums of money received and expended in the course of the carrying on or exercising of a trade, profession or other activity and the matters in respect of which the receipt and expenditure take place,

( b ) all sales and purchases of goods and services where the carrying on or exercising of a trade, profession or other activity involves the purchase or sale of goods or services,

( c ) the assets and liabilities of the trade, profession or other activity referred to in paragraph (a) or (b), and

( d ) all transactions which constitute an acquisition or disposal of an asset for capital gains tax purposes.

(2) ( a ) Every person who, on his own behalf or on behalf of any other person, carries on or exercises any trade, profession or other activity the profits or gains of which are chargeable under Schedule D, or who is chargeable to tax under Schedule D or Schedule F in respect of any other source of income, or who is chargeable to capital gains tax in respect of chargeable gains, shall keep, or cause to be kept on his behalf, such records as will enable true returns to be made, for the purposes of income tax and capital gains tax, of such profits or gains or chargeable gains.

( b ) The records shall be kept on a continuous and consistent basis, that is to say the entries therein shall be made in a timely manner and be consistent from one year to the next.

( c ) Where accounts are made up to show the profits or gains from any such trade, profession or activity or in relation to a source of income, of any person, that person shall retain, or cause to be retained on his behalf, linking documents.

( d ) Where any such trade, profession or other activity is carried on in partnership, the precedent partner, within the meaning of section 69 of the Income Tax Act, 1967 , shall, for the purposes of this section, be deemed to be the person carrying on that trade, profession or other activity.

(3) Records required to be kept or retained by virtue of this section, shall be kept—

( a ) in written form in an official language of the State, or

( b ) subject to section 113 (2) of the Finance Act, 1986 , by means of any electronic, photographic or other process.

(4) Linking documents and records kept pursuant to the preceding provisions of this section shall be retained by the person required to keep the records for a period of 6 years after the completion of the transactions, acts or operations to which they relate or, in the case of a person who fails to comply with section 10 (1) of the Finance Act, 1988 , requiring the preparation and delivery of a return on or before the specified return date for a year of assessment, until the expiry of a period of 6 years from the end of the year of assessment in which a return has been delivered showing the profits or gains or chargeable gains derived from the said transactions, acts or operations:

Provided that, this subsection shall not—

( a ) require the retention of linking documents and records in respect of which the inspector notifies in writing the person who is required to retain them that retention is not required, or

( b ) apply to the books and papers of a company which have been disposed of in accordance with section 305 (1) of the Companies Act, 1963 .

(5) Any person who fails to comply with the provisions of subsection (2), (3) or (4) in respect of any records or linking documents in relation to a return for any year of assessment shall be liable to a penalty of £1,200:

Provided that a penalty shall not be imposed under this subsection if it is proved that no person is chargeable to tax in respect of the profits or gains for that year of assessment.".

Inspection of documents and records.

232.—Chapter VI of Part I of the Finance Act, 1976 , is hereby amended by the substitution of the following section for section 34:

"34.— (1) In this section—

'authorised officer' means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section;

'property' means any asset relating to a tax liability;

'records' means any document, or any other written or printed material in any form including any information stored, maintained or preserved by means of any mechanical or electronic device, whether or not stored, maintained or preserved in a legible form, which a person is obliged by any provision relating to tax to keep, to retain, to issue, to produce for inspection or which may be inspected under any provision relating to tax;

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

'tax liability' means any existing liability to tax or further liability to tax which may be established by an authorised officer following the exercise or performance of his powers or duties under this section.

(2) ( a ) An authorised officer may at all reasonable times enter any premises or place where he has reason to believe that—

(i) any trade or profession or other activity, the profits or gains of which are chargeable to tax, is or has been carried on,

(ii) anything is or has been done in connection with any trade, profession or other activity the profits or gains of which are chargeable to tax,

(iii) any records relating to—

(I) any trade, profession, other source of profits or gains or chargeable gains,

(II) any tax liability, or

(III) any repayments of tax in regard to any person are or may be kept, or

(iv) any property is or has been located,

and may

(A) require any person who is on those premises or in that place, other than a person who is there to purchase goods or to receive a service, to produce any records or property,

(B) if he has reason to believe that any of the records or property which he has required to be produced to him under the provisions of this subsection have not been produced, search on those premises or in that place for those records or property,

(D) remove any records and retain them for a reasonable time for the purposes of their further examination or for the purposes of any legal proceedings instituted by an officer of the Revenue Commissioners, or for the purposes of any criminal proceedings, and

(E) examine property listed in any records.

( b ) An authorised officer, may in the exercise or performance of his powers or duties under this section, require any person, whom he has reason to believe—

(i) is or was carrying on any trade, profession or other activity the profits or gains of which are chargeable to tax,

(ii) is or was liable to any tax, or

(iii) has information relating to any tax liability,

to give the authorised officer all reasonable assistance including providing information and explanations or furnishing documents and making available for inspection property as required by the authorised officer in relation to any tax liability or any repayment of tax in regard to any person.

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

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

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

(iii) as are already required to be provided following a request issued under the provisions of section 16 (inserted by section 101 of the Finance Act, 1991 ) of the Stamp Act, 1891,

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

( d ) This subsection shall not apply to any premises or place where a banking business, within the meaning of the Central Bank Act, 1971 , is carried on or to any person, or an employee of any person, carrying on such a business.

( e ) (i) An authorised officer shall not, without the consent of the occupier, enter any premises, or that portion of any premises, which is occupied wholly and exclusively as a private residence, except on production by such officer of a warrant issued by a Judge of the District Court expressly authorising the authorised officer to so enter.

(ii) A Judge of the District Court may issue a warrant under subparagraph (i), if satisfied by information on oath that it is proper for him to do so for the purposes of this section.

(3) A person who does not comply with any requirement of an authorised officer in the exercise or performance of his powers or duties under this section shall be liable to a penalty of £1,000.

(4) An authorised officer, when exercising or performing his powers or duties under this section, shall on request show his authorisation for the purposes of this section.".

Powers of inspection: PAYE.

233.—Chapter IV of Part V of the Income Tax Act, 1967 , is hereby amended by the insertion after section 127 of the following section:

"127A.— (1) In this section—

'authorised officer' means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section;

'records' means any personnel records relating to the payment of emoluments or the provision of benefits-in-kind or perquisites, payroll files, wages sheets, certificates of tax-free allowances, tax deduction cards, certificates issued in accordance with Regulation 22 of the Income Tax (Employment) Regulations, 1960 ( S.I. No. 28 of 1960 ), including any data (within the meaning of section 237 of the Finance Act, 1992 ) stored by any means approved under section 113 of the Finance Act, 1986 , or by any other means or any other information or documents which the authorised officer may reasonably require.

(2) An authorised officer may at all reasonable times enter any premises or place where he has reason to believe that an employer is or has been carrying on any activity, as an employer, or that any person is or was either paying emoluments or providing benefits-in-kind, or perquisites or that any person is or was in receipt of emoluments, benefits-in-kind or perquisites or that records are or may be kept, and

( a ) may require any employer or any other person who is on those premises or in that place, other than a person who is there to purchase goods or to receive a service, to produce any records which he requires for the purposes of his enquiry,

( b ) may, if he has reason to believe that any of the records he has required to be produced to him under the provisions of paragraph (a) have not been so produced, search on those premises or in that place for those records, and

( c ) may examine, make copies of, take extracts from, remove and retain any records for further examination or for the purposes of any legal proceedings instituted by an officer of the Revenue Commissioners or for the purposes of any criminal proceedings.

(3) An authorised officer may require any person, other than a person purchasing goods or receiving a service from an employer, to give the authorised officer all reasonable assistance including providing information and explanations and furnishing documents required by the authorised officer.

(4) An authorised officer, when exercising or performing his powers or duties under this section, shall on request produce his authorisation for the purposes of this section.

(5) A person who does not comply with the requirements of an authorised officer in the exercise or performance of his powers or duties under this section shall be liable to a penalty of £1,000.

(6) The records referred to in this section shall be retained by the employer for a period of 6 years after the end of the year to which they refer or for such shorter period as the Revenue Commissioners may authorise in writing to the employer.".

Amendment of section 128 (penalties) of Income Tax Act, 1967 .

234.— Section 128 of the Income Tax Act, 1967 , is hereby amended in subsection 1—

( a ) by the deletion of "or to produce any wages sheet or records or documents,", and

( b ) by the substitution of "£1,200" for "£800",

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

TABLE

( a ) If any person does not comply with any provision of regulations made under this Chapter requiring him to send any return, statement, notification or certificate or to remit tax to the collector or fails to make any deduction or repayment in accordance with any regulation made pursuant to section 127 (1) (ee), he shall be liable to a penalty of £1,200,

Powers of inspection: tax deductions from payments to certain sub-contractors.

235.—Chapter 1 of Part I of the Finance Act, 1970 , is hereby amended by the insertion after section 17 of the following section:

"17A. (1) In this section—

'authorised officer' means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section;

'principal', 'relevant contract', 'relevant operations' and 'subcontractor' have the same meanings as they have in section 17 (as amended by section 28 of the Finance Act, 1992 );

'records' means those records required to be kept under section 6 (as amended by section 231 of the Finance Act, 1992 ) of the Finance Act, 1968 , section 17 (as so amended) and the regulations made under the said section 17.

(2) An authorised officer may at all reasonable times enter any premises or place where he has reason to believe that—

( a ) any relevant operations are or have been carried on,

( b ) any person is making or has made payments to a subcontractor in connection with the performance by the sub-contractor of a relevant contract in relation to which that person is the principal,

( c ) any person is or has been in receipt of such payments,

( d ) records are or may be kept on those premises,

and the authorised officer may—

(i) require any principal or sub-contractor, or any employee of, or any other person providing bookkeeping, clerical or other administrative services to, any principal or sub-contractor, who is on that premises or in that place to produce any records which he requires for the purpose of his enquiry,

(iii) if he has reason to believe that any of the records he has required to be produced to him under the provisions of this subsection have not been so produced, search on those premises or in that place for those records, and

(iii) examine, make copies of, take extracts from, remove and retain any records for a reasonable period for their further examination or for the purpose of any legal proceedings instituted by an officer of the Revenue Commissioners or for the purposes of any criminal proceedings.

(3) An authorised officer may require any principal or sub-contractor, or any employee of, or any other person providing bookkeeping, clerical or other administrative services to, any principal or sub-contractor, to give the authorised officer all reasonable assistance including providing information and explanations and furnishing documents required by the authorised officer.

(4) An authorised officer, when exercising or performing his powers or duties under this section, shall on request produce his authorisation for the purposes of this section.

(5) A person who does not comply with the requirements of an authorised officer in the exercise or performance of his powers or duties under this section shall be liable to a penalty of £1,000.

(6) The records referred to in this section shall be retained for a period of 6 years after the end of the year to which they refer or for such shorter period as the Revenue Commissioners may authorise in writing.".

Authorised officers an Garda Síochána.

236.—Where an authorised officer (within the meaning of section 127A (inserted by this Act) of the Income Tax Act, 1967 , section 17A (as so inserted) of the Finance Act, 1970 , or section 34 (as so inserted) of the Finance Act, 1976 , as the case may be) in accordance with the said section 127A, 17A or 34 enters any premises or place, he may be accompanied by a member or members of the Garda Síochána and any such member may arrest without warrant any person who obstructs or interferes with the authorised officer in the exercise or performance of his powers or duties under any of the said sections.

Inspection of computer documents and records.

237.—(1) In this section—

"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, and

( g ) Part VI of the Finance Act, 1983 ,

and any instruments made thereunder;

"data" means information in a form in which it can be processed;

"data equipment" means any electronic, photographic, magnetic, optical or other equipment for processing data;

"processing" means performing automatically logical or arithmetical operations on data, or the storing, maintenance, transmission, reproduction or communication of data;

"records" means documents which a person is obliged by any provision of the Acts to keep, to issue or to produce for inspection, and any other written or printed material;

"software" means any sequence of instructions used in conjunction with data equipment for the purpose of processing data or controlling the operation of the data equipment.

(2) Any provision under the Acts which—

( a ) requires a person to keep, retain, issue or produce any records or cause any records to be kept, retained, issued or produced, or

( b ) permits an officer of the Revenue Commissioners—

(i) to inspect any records,

(iii) to enter premises and search for any records, or

(iii) to take extracts from or copies of or remove any records,

shall, where the records are processed by data equipment, apply to the data equipment together with any associated software, data, apparatus or material as it applies to the records.

(3) An officer of the Revenue Commissioners may, in the exercise or performance of his powers or duties, require—

( a ) the person by or on whose behalf the data equipment is or has been used, or

( b ) any person having charge of, or otherwise concerned with the operation of, the data equipment or any associated apparatus or material,

to afford him all reasonable assistance in relation thereto.

Amendment of Section 31 (power to obtain from certain persons particulars of transactions with and documents concerning tax liability of taxpayers) of Finance Act, 1979 .

238.— Section 31 of the Finance Act, 1979 , is hereby amended—

( a ) in paragraph (a) of subsection 1—

(i) by the substitution of the following definition for the definition of "an authorised officer":

"'an authorised officer' means an officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section;",

(iii) by the substitution of the following definition for the definition of "documents":

"documents' means those records required to be kept or retained under the provisions of section 6 (as amended by section 231 of the Finance Act, 1992 ) of the Finance Act, 1968 ;",

and

(iii) by the addition of the following definition after the definition of "tax":

"'Tax Acts' has the meaning assigned to it by section 155 (2) of the Corporation Tax Act, 1976 .",

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

"(2) Where a person (in this section referred to as 'the taxpayer')-

( a ) delivers to an inspector a return or statement of the income, profits or gains arising to him from—

(i) any business (past or present) carried on by him or his spouse, or

(iii) any business (past or present) with whose management either of them was concerned at a material time,

and the inspector is not satisfied with the return or statement,

( b ) fails to deliver a return or statement as aforesaid which he is required to deliver under any provision of the Tax Acts,

the inspector may serve on the taxpayer a notice in writing stating—

(I) that he is not satisfied with the return or statement delivered to him, or that such return or statement has not been delivered to him, as the case may be, and

(II) that he has requested an authorised officer to serve notice under this section on persons who, in relation to the taxpayer, are subject to this section.",

and

( c ) by the substitution of the following subsection for subsection (9):

"(9) An authorised officer may examine any documents furnished or made available for inspection under this section and may take copies of, or extracts from, them or retain them for the purposes of any legal proceedings instituted by an officer of the Revenue Commissioners or for the purposes of any criminal proceedings.".

Amendment of section 20 (return of property) of Finance Act, 1983 .

239.— Section 20 of the Finance Act, 1983 , is hereby amended—

( a ) by the substitution in subsection (1) (a) of "income tax and capital gains tax" for "income tax", and

( b ) by the substitution for subsections (2), (3) and (4) of the following subsections:

"(2) Where for the purposes of tax, a person is required under any provision of the Tax Acts or the Capital Gains Tax Acts to deliver a tax return to an inspector of taxes or to the inspector of returns (as defined in section 10 (11) of the Finance Act, 1988 ), as the case may be, then 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 tax return 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 time specified in the notice, or within such further period as the inspector may allow, a statement of affairs in the prescribed form as at the date specified in the 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 statement of affairs together with such evidence, statement or documents required by the inspector in respect of any asset or liability shown on the statement of affairs, or in respect of any asset or liability which the inspector has reason to believe has been omitted from the statement of affairs.

(3) ( a ) In this section 'statement of affairs', in relation to a notice under subsection (2), means where the person to whom notice is given is—

(i) an individual who is a chargeable person and the tax return concerned relates to income or capital gains in respect of which he is chargeable to tax otherwise than in a representative capacity or as a trustee, a statement of all the assets wherever situated to which he is beneficially entitled on the specified date and all the liabilities for which he is liable on the specified date,

(iii) the spouse of an individual referred to in subparagraph (i), a statement of all the assets, wherever situated, to which the said spouse is beneficially entitled on the specified date and all the liabilities for which the said spouse is liable on the specified date,

(iii) a chargeable person in a representative capacity and the tax return concerned relates to income or capital gains of a person in respect of which he is so chargeable, a statement of all the assets wherever situated to which that person is beneficially entitled and which give rise to income or capital gains in respect of which the chargeable person is chargeable to tax in a representative capacity and all the liabilities for which the said person is liable, or are assets or liabilities in relation to which the chargeable person performs functions or duties in such a capacity on the specified date, or

(iv) a chargeable person as a trustee of a trust and the tax return concerned relates to income or capital gains of a trust, all the assets and liabilities comprised in the trust on the specified date.

( b ) Any assets 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 statement of affairs under this section where—

(i) such assets at any time prior to their acquisition by the minor child were disposed of by that individual whether to the minor child or not, or

(iii) the consideration for the acquisition of such assets by the minor child was provided directly or indirectly by that individual.

(4) ( a ) A statement of affairs delivered under this section shall contain in relation to each asset included thereon—

(i) a full description,

(iii) its location on the specified date,

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

(iv) the date of acquisition and, if it was acquired otherwise than through a bargain at arms 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 its acquisition.

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

( c ) A statement of affairs delivered under this section shall be signed by the person by whom it is 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.".

Amendment of section 23 (publication of names of defaulters) of Finance Act, 1983 .

240.—As respects the year 1992 and subsequent years, section 23 of the Finance Act, 1983 , is hereby amended—

( a ) in subsection (2), by the insertion of "or any part of a year as they see fit" after "as respects each year", and

( b ) in subsection (3), by the insertion in paragraph (a) of "or lists" after "the list",

and the said subsection (2) and the said paragraph (a), as so amended, are set out in the Table to this section.

TABLE

(2) The Revenue Commissioners shall, as respects each year or any part of a year as they see fit (being the year 1984 or a subsequent year), compile a list of 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.

( 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 or lists referred to in subsection (2) for the year in respect of which the report is made, and

Amendment of section 73 (deduction from payments due to defaulters of amounts due in relation to tax) of Finance Act, 1988 .

241.— Section 73 of the Finance Act, 1988 , is hereby amended—

( a ) in subsection (1) (b)—

(i) by the substitution of the following definition for the definition of "the Acts":

'the Acts' means—

(i) the Customs Acts,

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

(iii) the Tax Acts,

(iv) the Capital Gains Tax Acts,

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

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

(vii) the Stamp Act, 1891, and the enactments amending or extending that Act,

and any instrument made thereunder;",

(ii) by the substitution of the following subparagraph for subparagraph (i) of the proviso to the definition of "debt":

"(i) where a relevant person is a financial institution, any amount or aggregate amount of money, including interest thereon, which at that time is a deposit held by the relevant person—

(I) to the credit of the taxpayer for his sole benefit, or

(II) to the credit of the taxpayer and any other person or persons for their joint benefit,

shall be regarded as a debt due by the relevant person to the taxpayer at that time,",

(iii) by the insertion of the following additional proviso after the proviso to the definition of "debt":

"Provided also that, in the case of paragraph (i) of the preceding proviso, a deposit held by a relevant person which is a financial institution to the credit of the taxpayer and any other person or persons (hereafter referred to in this proviso as 'the other party or parties') for their joint benefit shall be deemed (unless evidence to the contrary is produced to the satisfaction of the relevant person within 10 days of the giving of the notices specified in paragraph (c) of subsection (2)) to be held to the benefit of the taxpayer and the other party or parties to the deposit equally and, accordingly, only the portion thereof so deemed shall be regarded as a debt due by the relevant person to the taxpayer at that time and where such evidence is produced within the specified time only so much of the deposit as is shown to be held to the benefit of the taxpayer shall be regarded as a debt due by the relevant person to the taxpayer at that time;",

and

(iv) by the substitution of the following definition for the definition of "interest on unpaid tax":

"'interest on unpaid tax', in relation to a specified amount specified in a notice of attachment, means interest, that has accrued to the date on which the notice of attachment is given, under any provision of the Acts providing for the charging of interest in respect of the unpaid tax, including interest on an undercharge of tax which is attributable to fraud or neglect, specified in the notice of attachment;",

( b ) in subsection 2—

(i) by the substitution of the following subparagraph for subparagraph (ii) of paragraph (a):

"(ii) (I) the amount or aggregate amount, or

(II) in a case where more than one notice of attachment is given to a relevant person or relevant persons in respect of a taxpayer, a portion of the amount or aggregate amount,

of the taxes, interest on unpaid taxes and penalties in respect of which the taxpayer is in default at the time of the giving of the notice or notices of attachment (the said amount, aggregate amount, or portion of the amount or aggregate amount, as the case may be, being referred to in this section as 'the specified amount'),",

(ii) by the insertion of the following additional proviso after the proviso to subparagraph (iii) (I) of paragraph (a):

"Provided also that where the relevant person is a financial institution and the debt due by the relevant person to the taxpayer is part of a deposit held to the credit of the taxpayer and any other person or persons to their joint benefit the said return shall be made within a period of 10 days from—

(A) the expiry of the period specified in the notices to be given under paragraph (c), or

(B) the production of the evidence referred to in paragraph (c) (II).",

and

(iii) by the insertion of the following paragraph after paragraph (b):

"(i) Where a relevant person which is a financial institution is given a notice of attachment and the debt due by the relevant person to the taxpayer is part of a deposit held by the relevant person to the credit of the taxpayer and any other person or persons (hereafter in this paragraph referred to as 'the other party or parties') for their joint benefit, the relevant person shall, on receipt of the notice of attachment, give to the taxpayer and the other party or parties to the deposit a notice in writing in which is entered—

(i) the taxpayer's name and address,

(iii) the name and address of the person to whom a notice under this paragraph is given,

(iii) the name and address of the relevant person, and

(iv) the specified amount, and which states that—

(I) a notice of attachment under this section has been received in respect of the taxpayer,

(II) under this section, a deposit is deemed (unless evidence to the contrary is produced to the satisfaction of the relevant person within 10 days of the giving of the notice under this paragraph) to be held to the benefit of the taxpayer and the other party or parties to the deposit equally, and

(III)unless such evidence is produced within the period specified in the notice given under this paragraph, a sum equal to the amount of the deposit so deemed to be held to the benefit of the taxpayer, and, accordingly, regarded as a debt due to the taxpayer by the relevant person, shall be paid to the Revenue Commissioners where that amount is equal to or less than the specified amount and where that amount is greater than the specified amount an amount equal to the specified amount shall be paid to the Revenue Commissioners.",

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

"( b ) the Revenue Commissioners have given the taxpayer a notice in writing (whether or not the document containing the notice also contains other information being communicated by the Revenue Commissioners to the taxpayer), not later than 7 days before the date of the receipt by the relevant person or relevant persons concerned of a notice of attachment, stating that, if the amount is not paid, it may be specified in a notice or notices of attachment and recovered under this section from a relevant person or relevant persons in relation to the taxpayer.",

( d ) in subsection (10), by the substitution in paragraph (b) of "amount or aggregate amount of the taxes, interest on unpaid taxes and penalties in respect of which the taxpayer is in default at the time of the giving of the notice or notices of attachment" for "specified amount", and the said paragraph (b), as so amended, is set out in the Table to this section,

and

( e ) by the deletion of subsection (17).

TABLE

( b ) Where, in pursuance of this section, a relevant person pays any amount to the Revenue Commissioners out of a debt due by him to the taxpayer and, at the time of the receipt by the Revenue Commissioners of the said amount, the taxpayer has paid the amount or aggregate amount of the taxes, interest on unpaid taxes and penalties in respect of which the taxpayer is in default at the time of the giving of the notice or notices of attachment to the Revenue Commissioners, the first-mentioned amount shall be refunded by the Revenue Commissioners forthwith to the taxpayer.

Tax clearance in relation to certain licences.

242.—(1) In this section—

"the Act of 1968" means the Finance (Miscellaneous Provisions) Act, 1968 ;

"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,

and any instruments made thereunder;

"beneficial holder of a licence" means the person named on the licence or, where that person is a nominee, the person on whose behalf the nominee holds the licence;

"licence" means a licence of the kind referred to in the proviso (inserted by section 156 of the Finance Act, 1992 ) to section 49 (1) of the Finance (1909-10) Act, 1910;

"specified date" means the date of commencement of a licence sought to be granted under section 49 (1) of the Finance (1909-10) Act, 1910, as specified for the purposes of a tax clearance certificate under subsection (2);

"tax clearance certificate" shall be construed in accordance with subsection (2).

(2) Subject to the provisions of subsection (3), the Collector-General shall, on an application to him by the person who will be the beneficial holder of a licence due to commence on a specified date, issue a certificate (in this section referred to as a "tax clearance certificate") for the purposes of the grant of a licence, if—

( a ) that person, and any partnership of which he is or was a partner in respect of the period of his membership,

( b ) in a case where that person is a partnership, each partner,

( c ) in a case where that person is a company, each person who is either the beneficial owner of, or able, directly or indirectly to control more than 50 per cent. of the ordinary share capital of the company,

has or have complied with all the obligations imposed on him or them by the Acts, in relation to—

(i) the payment or remittance of the taxes, interest and penalties required to be paid or remitted under the Acts, and

(ii) the delivery of returns.

(3) Where a person (hereafter in this section referred to as the "first-mentioned person") will be the beneficial holder of a licence due to commence on a specified date and another person (hereafter in this section referred to as the "second-mentioned person") was the beneficial holder of the licence at any time during the year preceding the said date, and—

( a ) the second-mentioned person is a company connected within the meaning of section 16 (3) of the Act of 1968 with the first-mentioned person or would have been such a company but for the fact that the company has been wound up or dissolved without being wound up,

( b ) the second-mentioned person is a company and the first-mentioned person is a partnership in which—

(i) a partner is or was able, or

(ii) where more than one partner is a shareholder, those partners together are or were able,

directly or indirectly either on his or their own, or with a connected person or connected persons within the meaning of section 16 (3) of the Act of 1968, to control more than 50 per cent. of the ordinary share capital of the company, or

( c ) the second-mentioned person is a partnership and the first-mentioned person is a company in which—

(i) a partner is or was able, or

(ii) where more than one partner is a shareholder, those partners together are or were able,

a tax clearance certificate shall not be issued by the Collector-General under subsection (2) unless, in relation to the activities conducted under the licence, the second-mentioned person has complied with his obligations under the Acts as specified in the said subsection:

Provided that this subsection shall not apply to a transfer of a licence effected before the 24th day of April, 1992, or apply to such transfer effected after that date where a contract for the sale or lease of the premises to which the licence relates was signed before that date.

(4) An application for a tax clearance certificate under this section shall be made to the Collector-General in a form prescribed by the Revenue Commissioners and shall specify the commencement date of the licence to which the application relates.

(5) If an application for a tax clearance certificate under this section is refused by the Collector-General, he shall, as soon as is practicable, communicate in writing such refusal and the grounds therefor to the person concerned.

( 6 ) ( a ) Where an application under this section to the Collector-General for a tax clearance certificate is refused the person aggrieved by such refusal may, by notice in writing given to the Collector-General within 30 days of such refusal, apply to have his application heard and determined by the Appeal Commissioners:

Provided that no right of appeal shall exist by virtue of this section in relation to any amount of tax or interest due under the Acts.

( b ) A notice under paragraph (a) shall be valid only if—

(i) it specifies—

(I) the matter or matters with which the person is aggrieved, and

(II) the grounds, in detail, of his appeal as respects each such matter,

and

(ii) any amount under the Acts which is due to be remitted or paid, and which is not in dispute, is duly remitted or paid.

( c ) The Appeal Commissioners shall hear and determine an appeal made to them under this subsection as if it were an appeal against an assessment to income tax and, subject to paragraph (d), all the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

( d ) On the hearing of an appeal made under this subsection, the Appeal Commissioners shall have regard to all matters to which the Collector-General is required to have regard under the provisions of this section.

Amendment of section 94 (revenue offences) of Finance Act, 1983 .

243.— Section 94 of the Finance Act, 1983 , is hereby amended—

( a ) in subsection 1—

(i) by the insertion of the following definition after the definition of "the Acts":

" 'an authorised officer' means an officer of the Revenue Commissioners authorised by them in writing to exercise any of the powers conferred by the Acts;",

and

(ii) by the insertion of the following paragraph after paragraph (e):

"( ee ) knowingly or wilfully, and within the time limits specified for their retention, destroys, defaces, or conceals from an authorised officer—

(i) any documents, or

(ii) any other written or printed material in any form, including any information stored, maintained or preserved by means of any mechanical or electronic device, whether or not stored, maintained or preserved in a legible form, which a person is obliged by any provision of the Acts to keep, to issue or to produce for inspection.",

and

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

"( a ) on summary conviction to a fine of £1,000 which may be mitigated to not less than one fourth part thereof 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"

Amendment of section 9 (interpretation (Chapter II)) of Finance Act, 1988 .

244.—As respects the year 1992-93 and subsequent years of assessment, section 9 (as amended by section 45 of the Finance Act, 1991 ) of the Finance Act, 1988 , is hereby amended in subsection (1) by the insertion in the definition of "chargeable person" of the following proviso to paragraph (a):

"Provided that this paragraph shall not apply to a person who is a director or, in the case of a person to whom the provisions of section 194 of the Income Tax Act, 1967 , apply, whose spouse is a director, within the meaning of section 119 of that Act, of a body corporate other than a body corporate which during a period of three years ending on the 5th day of April in the chargeable period—

(i) was not entitled to any assets other than cash on hands, or a sum of money on deposit within the meaning of section 230 of the Finance Act, 1992 , not exceeding £100, and

(ii) did not carry on a trade, business or other activity including the making of investments, and

(iii) did not pay charges on income within the meaning of section 10 of the Corporation Tax Act, 1976 .".

Amendment of section 48 (surcharge for late submission of returns) of Finance Act, 1986 .

245.—As respects the year 1992-93 and subsequent years of assessment, section 48 of the Finance Act, 1986 , is hereby amended by the addition of the following subsection after subsection (2)—

"(3) In the case of a person—

( a ) who is a director within the meaning of section 119 of the Income Tax Act, 1967 , or

( b ) to whom the provisions of section 194 of the Income Tax Act, 1967 , apply, and whose spouse is a director within the meaning of the said section 119,

paragraph (a) of the proviso to subsection (2) shall not apply, in respect of any tax deducted under Chapter IV of Part V of the Income Tax Act, 1967 , in determining the amount of a surcharge under this section.".

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

246.—Paragraph 3 of Schedule 4 to the Capital Gains Tax Act, 1975 , is hereby amended by the insertion after subparagraph (4) of the following subparagraph:

"(4A) ( a ) An event which, apart from paragraph 2(2) of Schedule 2, as applied by paragraph 4 or 5 of that Schedule, would constitute the disposal of an asset shall, for the purposes of this paragraph, constitute such a disposal.

( b ) An event which, apart from paragraph 2(2) of Schedule 2, as applied by paragraph 4 or 5 of that Schedule, would constitute the acquisition of an asset shall, for the purposes of this paragraph, constitute such an acquisition.".

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

247.— Section 143 (as amended by section 54 of the Finance Act, 1990 ) of the Corporation Tax Act, 1976 , is hereby amended, as respects any accounting period ending on or after the 1st day of April, 1992—

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

"(bb) all amounts of tax credits which are recoverable from the company under the provisions of sections 25 (5) and 26 (4),",

( b ) by the insertion after subsection (1) of the following subsection:

"(1A)An event which, apart from paragraph 2 (2) of Schedule 2 to the Capital Gains Tax Act, 1975 , as applied by paragraph 4 or 5 of that Schedule, would constitute the disposal of an asset giving rise to a chargeable gain or an allowable loss under the provisions of the Capital Gains Tax Acts and this Act shall, for the purposes of this section, constitute such a disposal.",

and

( c ) by the substitution in subsection (6) of "Subparagraphs (3) and (4), and subparagraph (4A) (b) (inserted by the Finance Act, 1992 ), of paragraph 3 of Schedule 4 to the Capital Gains Tax Act, 1975 " for "Paragraphs 3 (3) and (4) of Schedule 4 to the Capital Gains Tax Act, 1975 ",

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

TABLE

(6) Subparagraphs (3) and (4), and subparagraph (4A) (b) (inserted by the Finance Act, 1992 ), of paragraph 3 of Schedule 4 to the Capital Gains Tax Act, 1975 (power to demand information about the acquisition of assets), shall apply in relation to a notice under this section as they apply in relation to a notice under any of the provisions of the Income Tax Acts, as applied in relation to capital gains tax by the said paragraph 3.

Amendment of certain provisions of Tax Acts, etc., relating to penalties.

248.—Where, after the passing of this Act (but with respect to any year of assessment, or, as the case may be, accounting period, whether ending before or ending after such passing), an act or omission occurs in respect of which a person would, but for this section, have incurred the penalty or penalties provided for in any provision of the Tax Acts or Part VI of the Finance Act, 1983 , specified in column (2) of the Table to this section at any reference number, the person shall, in lieu of the penalty or penalties so provided for be liable to a penalty specified in column (3) of the said Table at that reference number and that provision shall be construed and have effect accordingly.

TABLE

Reference Number (1)	Provision of the Tax Acts, etc. (2)	Penalty (3)
		£
1.	Section 128 (1A) of the Income Tax Act, 1967	750
2.	Section 173 (6) of the Income Tax Act, 1967	1,200
3.	Section 426 (3) of the Income Tax Act, 1967	750
4.	Section 500 (1) of the Income Tax Act, 1967	750
5.	Section 500 (2) of the Income Tax Act, 1967	1,200
6.	Section 31 (5) of the Finance Act, 1979	1,000
7.	Section 45 (8) of the Finance Act, 1980	1,200
8.	Section 112 (1) (a) of the Finance Act, 1983	1,200
9.	Section 112 (3) of the Finance Act, 1983	2,500

PART VIII MISCELLANEOUS

Capital Services Redemption Account.

249.—(1) In this section—

"the 1991 amending section" means section 123 of the Finance Act, 1991 ;

"capital services" has the same meaning as it has in the principal section;

"the forty-second additional annuity" means the sum charged on the Central Fund under subsection (4);

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

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1992, subsection (4) of the 1991 amending section shall have effect with the substitution of "£48,887,319" for "£49,030,307".

(3) Subsection (6) of the 1991 amending section shall have effect with the substitution of "£37,010,325" for "£37,685,800".

(4) A sum of £50,386,760 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, 1992.

(5) The forty-second additional annuity shall be paid into the Capital Services Redemption Account in such manner and at such times in the relevant financial year as the Minister for Finance may determine.

(6) Any amount of the forty-second additional annuity, not exceeding £38,728,400 in any financial year, shall be applied towards defraying the interest on the public debt.

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

Amendment of Provisional Collection of Taxes Act, 1927 .

250.—The Provisional Collection of Taxes Act, 1927 , is hereby amended by the substitution for section 4A (inserted by the Appropriation Act, 1991 ) of the following section:

"4A. Where Dáil Éireann, having passed a resolution under this Act, has been dissolved on the date the resolution was so passed or within four months of that date, then the period of dissolution shall be disregarded for the purposes of calculating any period to which paragraph (a) or (d) of section 4 of this Act relates.".

Amendment of section 55 (payments to lessees under petroleum leases) of Petroleum and Other Minerals Development Act, 1960 .

251.— Section 55 of the Petroleum and Other Minerals Development Act, 1960 , is hereby amended by the substitution of "a payment, equal to the excess, may be paid by the Minister for Finance out of the Central Fund or the growing produce thereof for the purpose of payment to the lessee" for "the Minister, with the consent of the Minister for Finance, may, out of moneys provided by the Oireachtas, make to the lessee a payment equal to the excess", and the said section, as so amended, is set out in the Table to this section.

TABLE

55. If the total amount paid by the lessee under a petroleum lease as such lessee in respect of rent, royalties, income-tax, sur-tax, corporation profits tax and rates for any period exceeds such amount as the Minister, with the consent of the Minister for Finance, may determine, a payment, equal to the excess, may be paid by the Minister for Finance out of the Central Fund or the growing produce thereof for the purpose of payment to the lessee.

Voluntary Health Insurance Board levy.

252.—The Voluntary Health Insurance Board shall pay a levy of £3,000,000 into the Central Fund on or before the 30th day of June, 1992, in respect of the year 1992.

Care and management of taxes and duties.

253.—All taxes and duties (except the excise duties on mechanically propelled vehicles imposed by section 163) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

Short title, construction and commencement.

254.—(1) This Act may be cited as the Finance Act, 1992 .

(2) Part I (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.

(3) Part II (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 shall be construed together with the Value-Added Tax Acts, 1972 to 1991, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1992.

(5) Part IV shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6) Part V shall be construed together with Part VI of the Finance Act, 1983 .

(7) Part VI shall be construed together with the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act.

(8) Part VII (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 value-added tax) shall be construed together with the Value-Added Tax Acts, 1972 to 1992, and (so far as relating to stamp duties) shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act and (so far as relating to gift tax or inheritance tax) shall be construed together with the Capital Acquisitions Tax Act, 1976 , and (so far as relating to residential property tax) shall be construed together with Part VI of the Finance Act, 1983 , and (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.

(9) 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, 1992.

(10) In relation to Part II, Chapter III shall come into operation on the 1st day of July, 1992.

(11) In relation to Part III:

( a ) sections 164, 173 (1), 175 (1) and 197 (1) shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1992;

( b ) subparagraph (ii) of paragraph (a) of section 165, paragraph (b) of subsection (1) and paragraph (f) of subsection (2) of section 170, section 171, section 173 (2), paragraphs (b) and (d) of subsection (1) of section 177, paragraphs (a) and (b) of section 178, paragraph (a) and subparagraph (i) of paragraph (b) of section 179, paragraph (b) of section 180, subparagraphs (ii) and (iv) of paragraph (a) and paragraph (b) of section 181, paragraphs (a), (b) and (d) of subsection (1) of section 184, sections 185, 186 and 187, subparagraph (ii) of paragraph (a) and paragraphs (b), (c), (d), (e) and (f) of section 188, paragraph (b) of section 190, paragraphs (a) and (b) of section 191, section 193, paragraphs (b) and (d) of subsection (1) of section 194, paragraph (a) and subparagraph (i) of paragraph (b) of subsection (1) of section 195 and paragraph (a) of section 196, sections 197 (2) and 198 shall have effect as on and from the date of passing of this Act;

( c ) paragraph (a) of subsection (1) of section 170, paragraphs (a), (c) and (e) of subsection (1) of section 194, subparagraphs (iii), (iv) and (v) of paragraph (b) of subsection (1) of section 195, paragraph (b) of section 196 and section 197 (3) shall take effect as on and from the 1st day of July, 1992;

( d ) subparagraph (v) of paragraph (a) of section 165, subparagraphs (iii), (iv) and (v) of paragraph (b) of section 179, paragraph (c) of section 180, paragraphs (a) and (b) of section 189, paragraph (a) of section 190, paragraph (c) of section 191, paragraph (b) of section 192 and subparagraph (ii) of paragraph (b) of subsection (1) of section 195 shall take effect as on and from the 1st day of November, 1992; and

( e ) the provisions of this Part, other than those specified in paragraphs (a) to (d), shall take effect as on and from the 1st day of January, 1993.

(12) 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.

(13) 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.

(14) 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 8.

FIRST SCHEDULE

TABLES TO SECTION 4 (4) OF THE FINANCE ACT, 1982 .

PART I

Table to section 4 (4) of the Finance Act, 1982 , as respects the year 1992-93

"TABLE

Business mileage

Percentage

Lower limit (1)	upper limit (2)	(3)
Miles	Miles
15,000	16,000	97½ per cent.
16,000	17,000	95 per cent.
17,000	18,000	90 per cent.
18,000	19,000	80 per cent.
19,000	20,000	70 per cent.
20,000	21,000	60 per cent.
21,000	22,000	50 per cent.
22,000	23,000	40 per cent.
23,000	24,000	35 per cent.

24,000	25,000	30 per cent.
25,000	26,000	25 per cent.
26,000	27,000	20 per cent.
27,000	28,000	17 per cent.
28,000	29,000	14 per cent.
29,000	30,000	10 per cent.
30,000	—	5 per cent.

PART II

Table to section 4 (4) of the Finance Act, 1982 , as respects the year 1993-94

"TABLE

Business mileage

Percentage

lower limit (1)	upper limit (2)	(3)
Miles	Miles
15,000	16,000	97½ per cent.
16,000	17,000	95 per cent,
17,000	18,000	90 per cent.
18,000	19,000	80 per cent.
19,000	20,000	70 per cent.
20,000	21,000	60 per cent.
21,000	22,000	55 per cent.
22,000	23,000	45 per cent.
23,000	24,000	40 per cent.
24,000	25,000	35 per cent.
25,000	26,000	30 per cent.
26,000	27,000	25 per cent.
27,000	28,000	20 per cent.
28,000	29,000	18 per cent.
29,000	30,000	15 per cent.
30,000	—	10 per cent.

PART III

Table to section 4 (4) of the Finance Act, 1982 , as respects the year 1994-95

"TABLE

Business mileage

Percentage

lower limit (1)	upper limit (2)	(3)
Miles	Miles
15,000	16,000	97½per cent.
16,000	17,000	95 per cent.
17,000	18,000	90 per cent.
18,000	19,000	85 per cent.
19,000	20,000	75 per cent.
20,000	21,000	65 per cent.
21,000	22,000	60 per cent.
22,000	23,000	50 per cent.
23,000	24,000	45 per cent.
24,000	25,000	40 per cent.
25,000	26,000	35 per cent.
26,000	27,000	30 per cent.
27,000	28,000	25 per cent.
28,000	29,000	22 per cent.
29,000	30,000	20 per cent.
30,000	—	15 per cent.

PART IV

Table to section 4 (4) of the Finance Act, 1982 , as respects the year 1995-96

"TABLE

Business mileage		Percentage
lower limit (1)	upper limit (2)	(3)
Miles	Miles
15,000	16,000	97½ per cent.
16,000	17,000	95 per cent.
17,000	18,000	90 per cent.
18,000	19,000	85 per cent.
19,000	20,000	75 per cent.
20,000	21,000	70 per cent.
21,000	22,000	65 per cent.
22,000	23,000	55 per cent.
23,000	24,000	50 per cent.
24,000	25,000	45 per cent.
25,000	26,000	40 per cent.
26,000	27,000	35 per cent.
27,000	28,000	30 per cent.
28,000	29,000	28 per cent.
29,000	30,000	25 per cent.
30,000	—	20 per cent.

PART V

Table to section 4 (4) of the Finance Act, 1982 , as respects the year 1996-97 and subsequent years of assessment

"TABLE

Business mileage

Percentage

Lower limit (1)	upper limit (2)	(3)
Miles	Miles
15,000	16,000	97½ per cent.
16,000	17,000	95 per cent.
17,000	18,000	90 per cent.
18,000	19,000	85 per cent.
19,000	20,000	80 per cent.
20,000	21,000	75 per cent.
21,000	22,000	70 per cent.
22,000	23,000	65 per cent.
23,000	24,000	60 per cent.
24,000	25,000	55 per cent.
25,000	26,000	50 per cent.
26,000	27,000	45 per cent.
27,000	28,000	40 per cent.
28,000	29,000	35 per cent.
29,000	30,000	30 per cent.
30,000	—	25 per cent.

Section 11.

SECOND SCHEDULE

ACCOUNTABLE PERSONS FOR PURPOSES OF CHAPTER III OF PART I OF THE FINANCE ACT, 1987

1. A Minister of the Government.

2. A local authority within the meaning of section 2 (2) of the Local Government Act, 1941 .

3. A body established under the Local Government Services (Corporate Bodies) Act, 1971 .

4. A health board.

5. The General Medical Services (Payments) Board established under the General Medical Services (Payments) Board (Establishment) Order, 1972 ( S.I. No. 184 of 1972 ).

6. The Attorney General.

7. The Comptroller and Auditor General.

8. The Director of Public Prosecutions.

9. The Commissioner of Valuation.

10. The Chief Boundary Surveyor.

11. The Director of Ordnance Survey.

12. The Revenue Commissioners.

13. The Civil Service Commissioners.

14. The Commissioners of Public Works in Ireland.

15. The Clerk of Dáil Éireann.

16. The Legal Aid Board.

17. A vocational education committee or a regional technical college established under the Vocational Education Act, 1930 .

18. Teagasc.

19. A harbour authority.

20. An Foras Áiseanna Saothair.

21. Údarás na Gaeltachta.

22. The Industrial Development Authority.

23. An Bord Tráchtála — The Irish Trade Board.

24. Shannon Free Airport Development Company Limited.

25. Bord Fáilte Éireann.

26. An institution of higher education within the meaning of the Higher Education Authority Act, 1971 .

27. CERT Limited.

28. Eolas — The Irish Science and Technology Agency.

29. The Radiological Protection Institute of Ireland.

30. A voluntary public or joint board hospital to which grants are paid by the Minister for Health in the year 1988-89 or any subsequent year of assessment.

31. An authorised insurer within the meaning of section 145 of the Income Tax Act, 1967 .

32. An Bord Glas.

33. An Bord Pleanála.

34. ACC Bank public limited company.

35. Aer Lingus public limited company.

36. Aerlínte Éireann cuideachta phoiblí theoranta.

37. Aer Rianta cuideachta phoiblí theoranta.

38. Arramara Teoranta.

39. Blood Transfusion Service Board.

40. Bord na gCon.

41. Bord Gáis Éireann.

42. Bord Iascaigh Mhara.

43. Bord na Móna.

44. Bord Telecom Éireann.

45. Coillte Teoranta.

46. Coras Beostoic agus Feola.

47. Coras Iompair Éireann.

48. Custom House Docks Development Authority.

49. Electricity Supply Board.

50. Housing Finance Agency public limited company.

51. Industrial Credit Corporation public limited company.

52. Irish National Petroleum Corporation Limited.

53. Irish National Stud Company Limited.

54. Irish Steel Limited.

55. National Building Agency Limited.

56. National Concert Hall Company Limited.

57. An Post National Lottery Company.

58. Nítrigin Éireann Teoranta.

59. An Post.

60. The Racing Board.

61. Radio Telefís Éireann.

62. Royal Hospital Kilmainham Company.

THIRD SCHEDULE

Section 101.

PART I

Repeal of Provisions relating to Excise Duty on Beer

Session and Chapter or Year and Number (1)	Short Title (2)	Extent of Repeal (3)
43 & 44 Vict., c. 20.	Inland Revenue Act, 1880.	Section 2, subsection (3) of section 10, subsections (1), (3) and (4) of section 13, and sections 14, 15, 16, 18, 20, 22, 23, 24, 25, 26, 27, 28, 35, 36, 37, 38 and 39.
44 & 45 Vict., c. 12.	Customs and Inland Revenue Act, 1881.	Sections 4, 5 and 6.
48 & 49 Vict., c. 51.	Customs and Inland Revenue Act, 1885.	Subsection (1) of section 4, and sections 6, 7 and 8.
52 & 53 Vict., c. 7.	Customs and Inland Revenue Act, 1889.	Section 3.
59 & 60 Vict., c. 28.	Finance Act, 1896.	Sections 10 and 11.
9 Edw. 7, c. 43.	Revenue Act, 1909.	Section 6.
5 & 6 Geo. 5, c. 7.	Finance Act, 1914 (Session 2).	Sections 6 and 7.
5 & 6 Geo. 5, c. 62.	Finance Act, 1915.	Section 4.
8 & 9 Geo. 5, c. 15.	Finance Act, 1918.	Section 12.
1963, No. 23.	Finance Act, 1963 .	Section 30.
1984, No. 9.	Finance Act, 1984 .	Subsection (3) of section 69.
1986, No. 13.	Finance Act, 1986 .	Subsection (3) of section 67.
1989, No. 10.	Finance Act, 1989 .	Subsection (4) of section 51.

Section 155.

PART II

Repeal of Provisions relating to Spirits Retailers' On-Licences

Session and Chapter (1)	Short Title (2)	Extent of Repeal (3)
6 Geo. 4, c. 81.	Excise Licences Act, 1825.	Section 5.
4 & 5 Will. 4, c. 75.	Excise Act, 1834.	Section 9.
43 & 44 Vict., c. 20.	Inland Revenue Act, 1880.	Subsection 7 of section 43.
10 Edw. 7, c. 8.	Finance (1909-10) Act, 1910.	Sections 44, 45, 46, 47. Provisions 3 and 4 of the Provisions under the Heading "Provisions applicable to Retailers' On-Licences" in the First Schedule.

Section 146.

FOURTH SCHEDULE

RATES OF EXCISE DUTY ON TOBACCO PRODUCTS

Description of Product	Rate of Duty
Cigarettes	£47.75 per thousand together with an amount equal to 16.48 per cent. of the price at which the cigarettes are sold by retail
Cigars	£73.562 per kilogram
Sweetened pipe tobacco	£74.337 per kilogram
Hard pressed tobacco	£47.538 per kilogram
Other pipe tobacco	£59.756 per kilogram
Other smoking or chewing tobacco	£62.075 per kilogram

Section 147.

FIFTH SCHEDULE

RATES OF EXCISE DUTY ON CIDER AND PERRY

Description of Cider and Perry	Rate of Duty
Of an actual alcoholic strength by volume not exceeding 6% vol	£1.13 per gallon
Of an actual alcoholic strength by volume exceeding 6% vol but not exceeding 8.7% vol	£4.89 per gallon
Of an actual alcoholic strength by volume exceeding 8.7% vol	£9.27 per gallon

Section 154.

SIXTH SCHEDULE

RATES OF EXCISE DUTY ON CERTAIN LICENCES

PART I

Intoxicating Liquor Licences

(1) Reference Number	(2) Description of Licence	(3) Rate of Duty
	MANUFACTURERS' LICENCES
	Licence to be taken out annually by:
1.	Distiller of spirits	£200
2.	Rectifier or compounder of spirits	£200
3.	Brewer of beer for sale	£200
4.	Maker for sale of sweets	£200
5.	Maker of cider or perry for sale	£200
	WHOLESALE DEALERS' LICENCES
	Licence to be taken out annually by:
6.	Wholesale dealer in spirits	£200
7.	Wholesale dealer in beer	£200
8.	Wholesale dealer in wine	£200
9.	Wholesale dealer in spirits of wine	£200
	RETAILERS' ON-LICENCES
	Licence to be taken out annually by:
10.	Retailer of beer	£200
11.	Retailer of wine	£200
12.	Retailer of sweets	£200
13.	Retailer of cider	£200

	RETAILERS' OFF-LICENCES
	Licence to be taken out annually by:
14.	Retailer of spirits	£200
15.	Retailer of beer	£200
16.	Retailer of cider	£200
17.	Retailer of wine	£200
18.	Retailer of sweets	£200
	PASSENGER VESSEL LICENCES
19.	Licence to be taken out annually in respect of a passenger vessel by the master or other person belonging to the vessel nominated by the owner of the vessel	£200
20.	Licence to be taken out in respect of a passenger vessel by the master or other person belonging to the vessel nominated by the owner of the vessel, and to be in force for one day only	£40
	RAILWAY RESTAURANT CAR LICENCES
21.	Licence to be taken out annually in respect of a railway restaurant car by the railway company or other person owning the car	£200
	PASSENGER AIRCRAFT LICENCES
22.	Licence to be taken out annually by an air transport concern in respect of an aircraft in flight owned or hired by that concern	£200

Section 160.

PART II

Firearm Certificates

Description of Certificate	Rate of Duty
For a firearm certificate for a pistol, including an air pistol, or revolver	£30
For a firearm certificate for a rifle, including a miniature rifle	£30
For a firearm certificate for an airgun, including an air rifle	£30
For a firearm certificate for a prohibited weapon	£5
For a firearm certificate for a shot-gun to which the provisions of section 12 of the Firearms Act, 1964 , apply	£5
For any other firearm certificate—
For one such certificate	£20
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	£20
For the second and every subsequent such certificate	£5

Section 160.

PART III

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	£125
(b) exceeds three months but does not exceed six months	£250
(c) exceeds six months but does not exceed nine months	£375
(d) exceeds nine months	£500

Section 160.

PART IV

Other Licences

(1) Reference Number	(2) Description of licence	(3) Enactment imposing the duty	(4) Operative date	(5) Rate of Duty
1.	Auctioneer's licence	Section 11 of Finance Act, 1947	6th day of July, 1992	£200
2.	Auction permit	Section 12 of Finance Act, 1947	6th day of July, 1992	£200
3.	House agent's licence	Section 13 of Finance Act, 1947	6th day of July, 1992	£100
4.	Bookmaker's licence	Section 17 of Finance Act, 1931	1st day of December, 1992	£200
5.	Bookmaker's premises registration certificate	Section 18 of Finance Act, 1931	1st day of December, 1992	£200
6.	Hydrocarbon oil refiner's licence	Section 1(4) of Finance (Miscellaneous Provisions) Act, 1935	1st day of February, 1993	£150
7.	Methylated spirits maker's licence	Section 27 of Revenue Act, 1889	1st day of October, 1992	£150
8.	Methylated spirits retailer's licence	Section 27 of Revenue Act, 1889	1st day of October, 1992	£10
9.	Moneylender's licence	Section 18 (1) of Finance Act, 1933	1st day of August, 1992	£300
10.	Pawnbroker's licence	Section 18 of	1st day of August,
		Finance Act, 1965	1992	£300
11.	Tobacco products manufacturer's licence	Section 10 (1) of Finance (Excise Duty on Tobacco Products) Act, 1977	1st day of January, 1993	£150

Section 205.

SEVENTH SCHEDULE

STAMP DUTY ON INSTRUMENTS

PART I

Conveyance or Transfer on Sale of any Stocks or Marketable Securities

"CONVEYANCE or TRANSFER on sale of any stocks or marketable securities:
For every £100, or any fractional part of £100, of the consideration	£1.00

PART II

Conveyance or Transfer on Sale of Policy of Insurance or Policy of Life Insurance

"CONVEYANCE or TRANSFER on sale of a policy of insurance or a policy of life insurance where the risk to which the policy relates is located in the State:
For every £1,000 or any fractional part of £1,000 of the consideration	£1.00

PART III

Conveyances or Transfers of certain other Kinds

"CONVEYANCE or TRANSFER of any kind not hereinbefore described.
Where such instrument relates to—
(a) immovable property situated in the State, or any right over or interest in such property, or
(b) the stocks or marketable securities of a company having a register in the State	£10

PART IV

Deeds

"DEED of any kind whatsoever, not described in this schedule.
Where such instrument relates to—
(a) immovable property situated in the State, or any right over or interest in such property, or
(b) the stocks or marketable securities of a company having a register in the State	£10

PART V

Mortgages, Bonds, Debentures and certain Covenants

"MORTGAGE, BOND, DEBENTURE, COVENANT (except a marketable security) which is a security for the payment or repayment of money which is a charge or incumbrance upon property situated in the State other than shares in stocks or funds of the Government or the Oireachtas.
(1) Being the only or principal or primary security (other than an equitable mortgage):
where the amount secured does not exceed £20,000	Exempt
where the amount secured exceeds £20,000:
for every £1,000, or any fractional part of £1,000 of the amount secured	£1.00
Provided that the duty so charged shall not exceed £500.
(2) Being a collateral, or auxiliary, or additional, or substituted security (other than an equitable mortgage), or by way of further assurance for the above-mentioned purpose where the principal or primary security is duly stamped:
where the amount secured does not exceed £20,000	Exempt
where the amount secured exceeds £20,000	£10.00
(3) Being an equitable mortgage:
where the amount secured does not exceed £20,000	Exempt
where the amount secured exceeds £20,000:
for every £1,000 or any fractional part of £1,000, of the amount secured	50p
Provided that the duty so charged shall not exceed £500.
(4) TRANSFER, ASSIGNMENT or DISPOSITION of any such mortgage, bond, debenture, or covenant (except a marketable security) or of any money or stock secured by any such instrument or by any judgement:
where the amount secured does not exceed £20,000	Exempt
where the amount secured exceeds £20,000:
for every £1,000, or any fractional part of £1,000, of the amount transferred, assigned, or disposed, exclusive of interest which is not in arrear	50p
Provided that the duty so charged shall not exceed £500.
Where any further money is added to the money already secured	The same duty as a principal security for such further money

*O J No. L225, 20 August 1990, page 1.

*O.J. No. L76 of 23rd March 1992, page 1.

*O.J. No. L164, 24 June 1985, page 6.

^(a) O.J. No. L145,13 June 1977, page 1.

^(b) O.J. No. L367, 31 December 1991, page 1.

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	Irish Legislation
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Irish Legislation

Finance Act, 1992