Income Tax (Purchased Life Annuities) Regulations, 1959
Statutory Instruments
Source: Statutory Instruments

num: 1
paragraphs: These Regulations may be cited as the Income Tax (Purchased Life Annuities) Regulations, 1959.
num: 2
paragraphs: In these Regulations—
" the principal section " means section 22 of the Finance Act, 1959 ;
" payee " means the person beneficially entitled for the time being to the payments on account of an annuity ;
" payer " means any person resident in the State by whom, or any branch or agency in the State of a person not so resident (being a branch or agency through which that person carries on life assurance business) through which, an annuity is paid ;
and other expressions have the same meaning as in the Income Tax Acts.
num: 3
paragraphs: A claim for the application of the principal section to an annuity shall be made in writing to the Inspector by the payee and shall give the particulars set out in the Schedule to these Regulations.
num: 4
paragraphs: The Inspector may by notice require the payer of an annuity to furnish him with such particulars relating to the annuity as he may require, including the age of the person during whose life the annuity is payable, the amount or value of the consideration given for the grant of the annuity, and particulars of any other matter appearing to him to be relevant for the purposes of the principal section.
num: 5
paragraphs: On the receipt of a claim under Regulation 3 the Inspector shall determine whether the annuity is a purchased life annuity to which the principal section applies and, if so, what proportion of each payment on account of the annuity constitutes the capital element. The prescribed tables of mortality to be used for this purpose shall be the select tables in the volume of tables published in 1953 at the University Press, Cambridge, for the Institute of Actuaries and the Faculty of Actuaries, entitled " The a (55) Tables for Annuitants " and, in using these tables, the age as at the date when the first of the annuity payments begins to accrue, of a person during whose life the annuity ispayable, shall be taken to be the number of years of his age at his birthday last preceding that date. If that age is outside the range of the said tables, or in any other case where the tables are insufficient, the actuarial value of the annuity for the purposes of paragraph (c) of subsection (3) of the principal section shall be such amount as may be certified by an actuary nominated by the Minister for Finance. The Inspector shall serve a notice of his determination (hereinafter referred to as the original determination) upon the payee and, unless the payer is not entitled or required to deduct tax from the annuity, upon the payer of the annuity. The determination shall thereupon become effective, and a payer upon whom such notice is served shall be treated as having been notified in the prescribed manner for the purposes of subsection (4) of the principal section.
num: 6
paragraphs: If the payee is dissatisfied with the original determination he may, within twenty-one days from the date of service upon him of notice thereof, or such further time as the Special Commissioners may allow, give notice to the Inspector of his intention to appeal against the determination and such notice of intention to appeal shall specify the grounds of the appeal.
num: 7
paragraphs: Subsection (3) of section 5 of the Finance Act, 1929 (No. 32 of 1929), as amended by section 3 of the Finance Act, 1958 (No. 25 of 1958), shall, with any necessary modifications, apply to an original determination against which notice of appeal has been given under the last preceding Regulation as if such original determination were an assessment to income tax.
num: 8
paragraphs: If an appeal under Regulation 6 is not withdrawn or settled by agreement, it shall be heard by the Special Commissioners, who shall for this purpose have all such powers as they have in relation to appeals against assessments to income tax under Schedule D.
num: 9
paragraphs: Sections 149 and 196 of the Income Tax Act, 1918, as amended and extended by subsequent enactments, shall, with any necessary modifications, apply to appeals under these Regulations as they apply to appeals against assessments to income tax.
num: 10
paragraphs: If the original determination is amended as the result of an appeal, the Inspector shall, unless the payer is not entitled or required to deduct tax from the annuity or any part of it, serve a notice of the determination as so amended upon the payer of the annuity. The amended determination shall become effective as soon as the appeal has been finally determined and any notice as aforesaid has been served, and shall supersede any earlier determination in relation to the first payment made thereafter on account of the annuity, and, subject to the next following Regulation, to all subsequent such payments.
num: 11
paragraphs: If, at any time after a determination has become effective and at least one payment on account of the annuity has been made thereafter, the Inspector or the payee alleges that that determination is erroneous whether by reason of an error or mistake in a claim by the payee or otherwise, the Inspector may make, or the payee may makea claim for, a revised determination. If the Inspector makes a revised determination in accordance with the claim, he shall serve notice upon the payee accordingly. If he makes a revised determination without the payee having claimed it, or if he makes a revised determination which is not in accordance with the payee's claim, or if on receipt of the payee's claim he refuses to make a revised determination, he shall serve notice upon the payee accordingly, and Regulations 6, 7, 8 and 9 shall apply, with any necessary modifications, as they apply in relation to the original determination.
num: 12
paragraphs: —(1) As soon as the time limit for appealing against a revised determination made under Regulation 11 has expired or, if there is an appeal, as soon as the appeal has been finally determined, the Inspector shall, unless the payer is not entitled or required to deduct tax from the annuity or any part of it, serve notice of the said determination or, as may be appropriate, of that determination as amended on appeal, upon the payer of the annuity. The determination shall thereupon become effective and shall supersede any earlier determination in relation to the first payment made thereafter on account of the annuity, and, subject to Regulation 11, to all subsequent such payments.
(2) If by virtue of Regulation 6 the Special Commissioners extend the time limited for an appeal, the notice of appeal shall be treated as a claim made under Regulation 11 and that Regulation and paragraph (1) of this Regulation shall apply accordingly.
num: 13
paragraphs: Where any effective determination is amended on the final determination of an appeal, any amount by which the tax deducted from, or assessed and charged by reference to, payments on account of the annuity on the basis of the said determination exceeds the tax that would have been deducted or assessed and charged if the determination as amended had applied to those payments shall, subject to Regulation 17, be repaid to the payee by the Revenue Commissioners. Any amount by which the tax so deducted or assessed and charged falls short of the tax that would have been deducted or assessed and charged if the determination as amended had applied to those payments shall, subject to Regulation 17 and notwithstanding anything in the Income Tax Acts, be assessed and charged on the payee under Case VI of Schedule D for the relevant years of assessment.
num: 14
paragraphs: —(1) Where—
(a) income tax has been deducted from or assessed and charged by reference to the whole of any payments on account of an annuity and subsequently an original determination becomes effective, or
(b) a revised determination becomes effective,
the difference between—
(i) the tax, which the payer was entitled to deduct and did in fact deduct from payments on account of the annuity falling due after the 5th day of April, 1959, but made before the said determination became effective or the tax assessed and charged for the year beginning on the 6th day of April, 1959, or any later year of assessment, by reference to payments made before the said determination became effective,
and
(ii) the tax that would have been deducted from or assessed and charged by reference to the aforesaid payments if it had been deducted or assessed and charged in accordance with the said determination,