Finance Act, 1974
Acts of the Oireachtas
Source: Acts of the Oireachtas

num: 1
paragraphs: — Section 1 (1) of the Income Tax Act, 1967 , is hereby amended—
(a) by the deletion of the definition of “assessable income”,
(b) by the substitution for the definitions of “standard rate of tax”, “tax” and “year of assessment” of the following definitions, respectively, that is to say:
“‘standard rate’, in relation to tax, means the rate of tax provided for by section 3 (1) of the Finance Act, 1974;”,
“‘tax’ means income tax;”, and
“‘year of assessment’ means a year for which income tax is imposed by any Act imposing duties of income tax;”,
(c) by the insertion, after the definition of “foreign life insurance fund”, of the following definition:
“‘higher rates’, in relation to tax, means the rates of tax provided for by section 3 (2) (c) of the Finance Act, 1974;”,
(d) by the insertion, after the definition of “rating authority”, of the following definition:
“‘reduced rate’, in relation to tax, means the rate of tax provided for by section 3 (2) (a) of the Finance Act, 1974;” and
(e) by the insertion, after the definition of “taxable income” of the following definition:
“‘total income’ means total income from all sources as estimated in accordance with the provisions of this Act;”.
num: 2
paragraphs: — Section 4 of the Income Tax Act, 1967 , is hereby amended by the substitution of “at any rate or rates, tax at that rate or at those rates, as may be appropriate,” for “at any rate, the tax at that rate” and the said section 4, as so amended, is set out in the Table to this section.
TABLE
num: 4
paragraphs: Where any Act enacts that income tax shall be charged for any year at any rate or rates, tax at that rate or at those rates, as may be appropriate, shall, subject to the provisions of this Act, be charged for that year in respect of all property, profits, or gains respectively described or comprised in the Schedules contained in the sections of this Act enumerated below, that is to say—
num: 3
paragraphs: —(1) Income tax shall be charged for the year 1974-75 and for each subsequent year of assessment and, subject to subsection (2), shall be so charged at the rate of 35 per cent, (which shall be known as the standard rate).
(2) Where a person, who is charged to income tax for the year 1974-75 or any subsequent year of assessment is an individual (other than an individual acting in a fiduciary or representative capacity), he shall, subject to section 5 (3), be charged to tax—
(a) in respect of so much of his taxable income as does not exceed £1,550, at the rate of 26 per cent, (which shall be known as the reduced rate),
(b) in respect of so much (if any) of his taxable income as exceeds £1,550 but does not exceed £4,350, at the standard rate, and
(c) in respect of so much (if any) of his taxable income as exceeds £4,350, at the rates (which shall be known as the higher rates) specified in the following Table:
Table
Part of excess over £4,350
Higher rate
The first £2,000
50 per cent.
The next £2,000
65 per cent.
The remainder
80 per cent.
num: 4
paragraphs: —Where income (in this section referred to as the relevant income)—
num: 5
paragraphs: —(1) The provisions of the Income Tax Acts which provide that tax may be deducted from any payment at the rate or rates of tax in force during the period through which the payment was accruing due, or that there may be deducted from any dividend the tax appropriate thereto shall have effect as if they provided that tax may be deducted or shall be allowed at the standard rate for the year in which the amount payable becomes due:
Provided that this subsection shall not affect the deduction of tax at a rate less than the standard rate by virtue of section 363 , 396 or 410 of the Income Tax Act, 1967 , or section 14 of the Finance Act, 1973 .
(2) In estimating under the Income Tax Acts the total income of any person, any income which is chargeable with tax by way of deduction at the standard rate in force for any year shall be deemed to be income of that year, and any deductions which are allowable on account of sums payable under deduction of tax at the standard rate in force for any year out of the property or profits of that person shall be allowed as deductions in respect of that year, notwithstanding that the income or sums, as the case may be, accrued or will accrue in whole or in part before or after that year.
(3) Where a person is required to be assessed and charged with tax in respect of any property, profits or gains out of which he makes any payment in respect of any annual interest, annuity or other annual sum, or any royalty or other sum in respect of the user of a patent, he shall, in respect of so much of the property, profits or gains as is equal to the said payment and may be deducted in computing his total income, be charged at the standard rate only.
num: 6
paragraphs: —(1) Where a deduction falls to be made from the total income of an individual for the year 1974-75 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this section and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2) be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).
TABLE
Statutory provision
Amount to be deducted for 1973-74
Amount to be deducted from total income for 1974-75 and subsequent years
(1)
(2)
(3)
£
£
Income Tax Act, 1967 :
section 138 (married man)
494
800
(single person)
299
500
(widowed person)
324
550
(working wife)
104 or, if less, three-fourths of amount of wife's earned income
200 or, if less, amount of wife's earned income
sections 139 and 140 (housekeeper)
100
140
section 141 (child)—under 11 years
155
200
—11 years or over
170
200
section 142 (dependent relative)
60
80
Finance Act, 1969 :
section 3 (housekeeper taking care of incapacitated person)
100
140
Finance Act, 1971 :
section 11 (blind person)
100
140
(both spouses blind)
200
280
num: 7
paragraphs: — Section 142 (1) of the Income Tax Act, 1967 , is hereby amended by the substitution of “£489” for “£407” (inserted by the Finance Act, 1973 ) in both places where it occurs, by the substitution of “£80” for “£60”, in both places where it occurs, and by the substitution of “£409” for “£347” (inserted by the said Finance Act, 1973 ) and the said section 142 (1), as so amended, is set out in the Table to this section.
TABLE
num: 142
paragraphs: —(1) If the claimant proves that he maintains at his own expense any person, being a relative of his or of his wife who is incapacitated by old age or infirmity from maintaining himself, or his or his wife's widowed mother, whether incapacitated or not, and being a person whose total income from all sources is less than £489 a year, he shall be entitled to a deduction of £80 in respect of each person whom he so maintains, and a like deduction shall be made in the case of a claimant who, by reason of old age or infirmity, is compelled to depend upon the services of a person (being a person whose total income from all sources is less than £489 a year and being a son or daughter of the claimant) resident with and maintained by him or her:
Provided that each of the foregoing provisions of this subsection shall have effect, in a case in which the total income from all sources of the person in respect of whom the deduction is to be made exceeds £409 a year, as if, instead of specifying a deduction of £80, it specified a deduction of that amount reduced by the amount of the excess.
num: 8
paragraphs: —(1) Where, for the year 1974-75 or any subsequent year of assessment, an individual is entitled to a deduction under section 138 of the Income Tax Act, 1967 , and he proves that at any time during that year of assessment he was, or in the case of a married man whose wife is living with him, either he or his wife was, of the age of sixty-five years or upwards, he shall, in addition to the allowance to which he is entitled under the said section 138 for that year of assessment, be entitled to a deduction—
(a) in case he is a married man whose wife is living with him, of £50, and
(b) in any other case, of £25.
(2) All such provisions of the Income Tax Acts as apply in relation to every deduction specified in sections 138 to 143 of the Income Tax Act, 1967 , shall apply in relation to a deduction under this section.
num: 9
paragraphs: — Section 152 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (1) of the following subsection:
“(1) The aggregate of the premiums or other sums in respect of which relief is given to any person under sections 143 and 151 shall not exceed one-sixth of the total income of the person or £1,000, whichever is the lesser:
Provided that in any case where the aggregate of the premiums paid on policies of insurance or on contracts for deferred annuities exceeds £1,000 and the insurance or contract was made before the 3rd day of April, 1974, relief in respect of the said premiums or other sums shall be given under the sections aforesaid without regard to the restriction of £1,000 provided for in this subsection.”.
num: 10
paragraphs: —Sur-tax shall not be charged for the year 1974-75 or any subsequent year of assessment.
num: 11
paragraphs: —Part II of the First Schedule shall have effect for the purpose of supplementing this Chapter.
num: 12
paragraphs: —The provisions of this Chapter shall have effect for the year 1974-75 and subsequent years of assessment and, accordingly, the amendments effected by those provisions and the First Schedule and the repeals effected by section 86 and mentioned in Part I of the Second Schedule shall not be taken to affect tax for an earlier year of assessment or the doing of anything in relation to tax for such a year.
num: 13
paragraphs: —(1) In this Chapter “farming”, “farm land” and “occupation” have the same meaning as in section 18 (1) of the Finance Act, 1969.
(2) Any reference in this Chapter to farm land occupied by an individual includes farm land deemed, by virtue of section 17, to be occupied by him.
(3) A reference in this Chapter to the rateable valuation of farm land occupied by an individual at a particular time is a reference to the aggregate of the rateable valuations of all farm land occupied by him and of all farm land deemed to be occupied by him at that time and a reference to the rateable valuation of farm land occupied by an individual for a year of assessment or part of a year of assessment is a reference to the total rateable valuation of all farm land occupied by him and of all farm land deemed to be occupied by him for that year of assessment, or part of a year of assessment calculated in accordance with the provisions of section 17 (5), (6) and (7):
Provided that, in calculating the rateable valuation of farm land for the purposes of this Chapter, the rateable valuation of any building on the land shall be excluded.
num: 14
paragraphs: — Section 18 (2) (a) of the Finance Act, 1969 , is hereby repealed.
num: 15
paragraphs: —(1) Subject to subsection (3), all farming in the State shall be treated as the carrying on of a trade or, as the case may be, of part of a trade, and the profits or gains thereof shall be charged to tax under Case I of Schedule D accordingly.
(2) Notwithstanding anything to the contrary in Chapter III of Part IV of the Income Tax Act, 1967 , all farming carried on by any person whether solely or in partnership shall be treated as the carrying on of a single trade.
(3) Subsection (1) shall not apply, as respects any year of assessment, in the case of an individual who shows that the rateable valuation of all farm land occupied by him did not, at any time during that year of assessment, amount to £100 or more.
num: 16
paragraphs: —(1) Section 15 (3) shall not have effect for any year of assessment in a case where farming is carried on in that year of assessment by an individual—
(a) who at any time in that year of assessment is also carrying on either solely or in partnership another trade or profession,
(b) whose spouse, in a case where the individual is a married person, is, at any time in that year of assessment, also carrying on either solely or in partnership another trade or profession,
(c) who, at any time in that year of assessment, is a director of a company carrying on a trade or profession and who is either the beneficial owner of, or able, either directly or through the medium of other companies or by any other means, to control more than 25 per cent. of the ordinary share capital of the company, or
(d) whose spouse, in a case where the individual is a married person, is, at any time in that year of assessment, a director of a company carrying on a trade or profession and who is either the beneficial owner of, or able, either directly or through the medium of other companies or by any other means, to control more than 25 per cent. of the ordinary share capital of the company:
Provided that paragraphs (b) and (d) shall not apply in a case where the wife of an individual is treated for tax purposes as not living with her husband.
(2) Subsection (1) shall apply in the case of a married person whose wife is carrying on farming and the provisions of that subsection shall have effect in such a case as if the references to the individual were a reference to his wife.
(3) This section shall not apply, as respects any year of assessment, in the case of an individual who shows that the rateable valuation of all farm land occupied by him did not, at any time during that year of assessment, exceed £50, or if it did so exceed £50, that any trade carried on by his spouse consisted solely of the provision of accommodation in buildings on the said farm land, the provision of such accommodation being ancillary to the farming of that farm land.
(4) For the purposes of paragraphs (c) and (d) of subsection (1), ordinary share capital which is owned or controlled in the manner referred to in that paragraph by a person being the wife, the husband or an infant child of a director, or by the trustee of a trust for the benefit of a person or persons being or including any such person or such director, shall be deemed to be owned or controlled by such director and not by any other person.
(5) In this section—
“company” means a company within the meaning of the Companies Act, 1963 ;
“director” includes a person holding any office or employment under a company;
“ordinary share capital” means all the issued capital (by whatever name called) of a company, other than capital the holders whereof have a right to a dividend at a fixed rate or a rate fluetuating in accordance with the standard rate of tax, but have no other right to share in the profits of the company.
num: 17
paragraphs: —(1) For the purposes of this Chapter, farm land shall be I deemed to be occupied by an individual where it is occupied by his wife or it is farm land of which he or his wife is the beneficial owner or of which they are the beneficial owners and which is occupied by any other person or persons.
(2) Where farm land is occupied by an individual, or by his wife, in partnership with any other person or persons and neither he nor his wife is a beneficial owner of the farm land, the individual shall be deemed to occupy a proportionate part of that farm land and the rateable valuation of the proportionate part shall be so much of the total rateable valuation of the said farm land as bears to the said total rateable valuation the same proportion as his or her share, as may be appropriate, of the profits or losses on an apportionment thereof made in accordance with the terms of the partnership agreement as to the sharing of profits or losses bears to the total profits or losses of the partnership.
(3) Where farm land is beneficially owned by an individual, or by his wife, jointly with any other person or persons but is not occupied by the individual or his wife either solely or jointly with any other person or persons, the individual shall be deemed to occupy farm land the rateable valuation of which is an amount which is equal to such part of the total rateable valuation of the land of which he or his wife is a beneficial owner, as is proportionate to his or her share in the beneficial ownership of the said farm land.
(4) Where farm land is beneficially owned by an individual, or by his wife, jointly with any other person or persons and the said farm land is occupied by the individual or by his wife, in partnership with any other person or persons, he shall be deemed to occupy farm land the rateable valuation of which is an amount which is equal to such fractional part of the total rateable valuation of the land of which he or his wife is a beneficial owner as is proportionate to his or her share in the beneficial ownership of the said farm land.
(5) The total rateable valuation of farm land occupied by an individual for a year of assessment shall be the sum of—
(a) the rateable valuation of all farm land occupied by him or deemed to be occupied by him by virtue of subsection (1),
(b) the rateable valuation of all proportionate parts of farm land deemed to be occupied by him by virtue of subsections (2), (3) and (4).
(6) Where farm land is occupied by an individual for part only of any year of assessment, the rateable valuation of the farm land so occupied shall, for that year of assessment, be deemed for the purposes of this section to be an amount which bears to the total rateable valuation thereof the same proportion that the length of the period during which the said farm land was so occupied in the year of assessment bears to twelve months.
(7) Where by virtue of subsection (1), (2), (3) or (4) farm land is deemed to be occupied by an individual and for any year of assessment the circumstances by reference to which he is deemed to occupy that farm land or any proportionate part thereof obtained for part only of that year of assessment, the rateable valuation of any farm land deemed to be occupied by him shall, for that year of assessment, be deemed for the purposes of this section to be an amount which bears to the total rateable valuation of the said farm land the same proportion that the length of the period during which the said circumstances obtained in the year of assessment bears to twelve months.
num: 18
paragraphs: —(1) Where, in the case of property valued under the Valuation Acts as a unit, a part is and a part is not farm land, the rateable valuation of each part shall be arrived at for the purposes of this Chapter by apportionment of the rateable valuation of the property.
(2) Where farm land valued under the Valuation Acts as a unit is divided into two or more distinct occupations, the rateable valuation of the part occupied by each occupier shall be arrived at for the purposes of this Chapter by apportionment of the rateable valuation of the farm land concerned.
(3) Any apportionment required by this section shall be made by the inspector according to the best of his knowledge and judgment.
(4) Section 67 (3A) (c) of the Income Tax Act, 1967 , (inserted by section 31 of the Finance Act, 1969 ) shall apply in respect of any apportionment made under this section as it applies in respect of any apportionment made under section 67 (3A) (b) of the said Act.
num: 19
paragraphs: —(1) Where for any year of assessment an individual, other than an individual to whom section 16 applies, is chargeable to tax in respect of profits or gains from farming, the amount of tax so chargeable for that year of assessment shall not exceed—
(a) where the rateable valuation of the farm land occupied by him for that year of assessment does not exceed £100, one-twentieth of the tax appropriate to the profits or gains from farming;
(b) where the rateable valuation of the farm land occupied by him for that year of assessment exceeds £100, the amount arrived at by multiplying the tax appropriate to the profits or gains from farming by a fraction the denominator of which is twenty and the numerator of which is the number equivalent to the amount by which the rateable valuation of the land so occupied exceeds £99:
Provided that, in a case where there is no income chargeable to tax other than profits or gains from farming, the tax chargeable shall not exceed by an amount greater than £40 the amount of tax which would be chargeable in accordance with the provisions of this section if the rateable valuation of the farm land occupied by him were £1 less than the actual rateable valuation.
(2) For the purposes of this section, the tax appropriate to the profits or gains from farming shall, in relation to an individual, be so much of the tax that would, but for the provisions of this section, be payable in respect of the individual's total income as bears to that tax the same proportion as the amount of the profits or gains from farming included in the said total income bears to that total income.
(3) This section shall not apply in any case where the rateable valuation of the farm land occupied by an individual at any time during the year of assessment exceeds £119.
num: 20
paragraphs: —(1) Where, for the year of assessment 1974-75, a person is, by virtue of section 15, chargeable to tax in respect of profits or gains from farming and would, in accordance with the provisions of section 58 (1) of the Income Tax Act, 1967 , be charged to tax under Case I of Schedule D on the full amount of the profits or gains of the year preceding that year of assessment, he may, by notice in writing given to the inspector within six months after the commencement of the said year of assessment, elect to be charged to tax for that year of assessment on the full amount of the profits or gains of that year and not on the full amount of the profits or gains of the year preceding that year of assessment.
(2) For the purposes of this section, the profits or gains of the year 1974 may, at the election of the person chargeable to tax in respect of them, be taken as the profits or gains of the year 1974-75.
num: 21
paragraphs: —(1) Where, for the year of assessment 1974-75, an individual, other than an individual to whom section 16 applies, is, by virtue of section 15, chargeable to tax in respect of profits or gains from farming he may, by notice in writing given to the inspector within six months after the commencement of the said year of assessment, elect to be charged to tax for that year of assessment in respect of those profits or gains in accordance with the provisions of this section and not by reference to the provisions of section 58 (1) of the Income Tax Act, 1967 , or of section 20.
num: 22
paragraphs: —(1) This section applies to any person carrying on farming, the profits or gains of which are chargeable to tax in accordance with the provisions of section 15 (1).
(2) Where a person to whom this section applies incurs, for the purpose of farming farm land occupied by him, any capital expenditure on the construction of farmhouses, farm buildings, cottages, fences or other works, there shall be made in charging the profits or gains from farming the said farm land an annual allowance (in this section referred to as a farm buildings allowance) equal to one-tenth of the said expenditure for the first relevant year of assessment and for each subsequent year of assessment until the allowances made under this section in respect of the expenditure equal the amount of the expenditure:
Provided that this subsection shall not apply to any expenditure incurred before the 6th day of April, 1974,
(3) Any capital expenditure as aforesaid incurred on or after the 6th day of April, 1974, by a person about to carry on farming but before commencing farming shall, for the purposes of this section, be treated as if it had been incurred on the first day on which he commences farming.
(4) Where capital expenditure as aforesaid is incurred on a farmhouse, one-third only of that expenditure shall be taken into account, or, if the accommodation and amenities of the farmhouse are out of due relation to the nature and extent of the farm, such proportion thereof not greater than one-third as may be just.
(5) For the purposes of this section, the first relevant year of assessment, in relation to expenditure incurred by any person, is the year in his basis period (within the meaning of section 297 of the Income Tax Act, 1967 ) for which he incurs the expenditure.
(6) Any claim by a person for an allowance falling to be made to him under the provisions of this section shall be included in the annual statement required to be delivered under the Income Tax Acts of the profits or gains from farming, and the allowance shall be made as a deduction in charging those profits or gains, and section 241 (3) of the Income Tax Act, 1967 , shall apply in relation to the allowance as it applies in relation to deductions allowable in respect of wear and tear of machinery or plant.
(7) Any claim for an allowance under the provisions of this section shall be made to and determined by the inspector, but any person aggrieved by any decision of the inspector on any such claim may, on giving notice in writing to the inspector within twenty-one days after the notification to him of the decision, appeal to the Appeal Commissioners.
(8) The Appeal Commissioners shall hear and determine an appeal to them made under subsection (7) as if it were an appeal against an assessment to tax 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.
(9) Where a person who is entitled to an allowance under subsection (2) in respect of capital expenditure incurred for the purpose of farming farm land transfers his interest in that farm land or any part of that farm land to another person, that other person shall, to the exclusion of the first-mentioned person be entitled to the allowances under this section for the years of assessment following the year in which the transfer of interest took place:
Provided that where the transfer of interest took place in relation to part only of the farm land, this subsection shall apply to so much of the allowance as is properly referable to that part of the land as if it were a separate allowance.
(10) Where expenditure is incurred partly for the purposes of farming and partly for other purposes, subsection (2) shall apply to so much only of that expenditure as on a just apportionment ought fairly to be treated as incurred for the purposes of farming.
(11) No allowance shall be made by virtue of this section in respect of any expenditure if for the same or any previous or subsequent year of assessment an allowance is or has been made in respect of it under Chapter II of Part XV or Chapter I of Part XVI of the Income Tax Act, 1967 .
(12) Expenditure shall not be regarded for any of the purposes of this section as having been incurred by any person in so far as it has been met directly or indirectly by the State, by any board established by statute, or by any public or local authority.
num: 23
paragraphs: —The repeal, by virtue of section 14 , of section 18 (2) (a) of the Finance Act, 1969 , shall not prevent section 20 of the said Act from applying to a dividend paid on or after the 6th day of April, 1974, in a case where the dividend is paid out of profits exempted from tax by virtue of the said section 18 (2) (a), or is paid in part out of such profits and in part out of other profits.
num: 24
paragraphs: —No relief shall be given under section 309 of the Income Tax Act, 1967 , in respect of a loss sustained in any year of assessment prior to the year 1974-75 in the carrying on of farming, by deducting such loss from or setting it against the amount of the profits or gains from farming assessed for the year 1974-75 or any subsequent year of assessment.
num: 25
paragraphs: —(1) In determining whether any, and if so what, wear and tear allowance, balancing allowance or balancing charge in respect of machinery or plant falls to be made to or on any person for any year of assessment in charging the profits or gains from farming, there shall be deemed to have been made to that person, for every previous year of assessment in which the machinery or plant belonged to him and which is a year of assessment to be taken into account for the purpose of this section, such wear and tear allowance or greater wear and tear allowance, if any, in respect of the machinery or plant as would have fallen to be made to him if, in relation to every such previous year—
num: 26
paragraphs: — Section 307 of the Income Tax Act, 1967 , is hereby amended—
(a) by the substitution in subsection (1) of “trade other than farming, or in any” for “trade,”,
(b) by the substitution in subsection (1) of “or in farming in a case in which this section applies” for “or in the occupation of lands for the purposes of husbandry only”, and
(c) by the insertion after subsection (1) of the following subsection:
“(1A) This section applies in any case where farming is carried on other than in the case of an individual to whom section 15 (3) of the Finance Act, 1974, applies or would apply if the individual so claimed.”,
and the said subsection (1) of section 307, as so amended, is set out in the Table to this section.
TABLE
(1) Subject to the provisions of this section, where in any year of assessment any person has sustained a loss in any trade other than farming, or in any profession or employment, carried on by him either solely or in partnership, or in farming in a case in which this section applies or in the occupation of woodlands managed on a commercial basis and with a view to the realisation of profits, he shall be entitled, on making a claim in that behalf, to such repayment of tax as is necessary to secure that the aggregate amount of tax for the year ultimately borne by him will not exceed the amount which would have been borne by him if his income had been reduced by the amount of the loss.
num: 27
paragraphs: —(1) In this section—
“basis year”, in relation to any capital allowance, shall be construed in accordance with section 317 (2) of the Income Tax Act, 1967 ;
“capital allowance” has the same meaning as in section 317 of the Income Tax Act, 1967 ;
“prior three years” in relation to a loss incurred in a year of assessment, means the last three years of assessment before that year;
“prior period of loss” means the prior three years, or, if losses were incurred in successive years of assessment amounting in all to a period longer than three years (and ending when the prior three years end), that longer period;
“market gardening” has the same meaning as in section 54 of the Income Tax Act, 1967 .
(2) (a) Any loss (including any amount in respect of allowances which, by virtue of section 318 of the Income Tax Act, 1967 , is to be treated as a loss) incurred in a trade of farming or market gardening shall not be available for relief under section 307 or 308 of that Act unless it is shown that, for the year of assessment in which the loss is claimed to have been incurred, the trade was being carried on on a commercial basis and with a view to the realisation of profits in the trade.
(b) Without prejudice to paragraph (a), any loss (including any amount in respect of allowances which by virtue of section 318 of the Income Tax Act, 1967 , is to be treated as a loss) incurred in any year of assessment in a trade of farming or market gardening shall not be available for relief under section 307 or 308 of the Income Tax Act, 1967 , if in each of the prior three years a loss was incurred in carrying on that trade.
(c) For the purposes of this section, the fact that a trade of farming or market gardening was being carried on at any time so as to afford a reasonable expectation of profit shall be conclusive evidence that it was then being carried on with a view to the realisation of profits.
(d) This subsection shall not restrict relief for any loss or any capital allowance if it is shown by the claimant that the whole of his farming or market gardening activities in the year next following the prior three years are of such a nature, and carried on in such a way, as would have justified a reasonable expectation of the realisation of profits in the future if they had been undertaken by a competent farmer or market gardener, but that, if that farmer or market gardener had undertaken those activities at the beginning of the prior period of loss, he could not reasonably have expected the activities to become profitable until after the end of the year next following the prior period of loss.
(e) This subsection shall not restrict relief where the carrying on of the trade forms part of, and is ancillary to, a larger trading undertaking.
num: 28
paragraphs: —(1) Where, for any year of assessment, farm land is occupied by an individual in respect of whom, by virtue of section 15 (3), subsection (1) of that section does not apply and—
(a) the rateable valuation of the farm land occupied by him exceeds £20, and
(b) he is chargeable to tax for that year of assessment in respect of income other than income from farming (hereinafter referred to as other income),
this section shall apply.
(2) In any case in which this section applies for any year of assessment, the aggregate amount of the deductions to be made from the total income of the individual concerned for that year of assessment in respect of personal reliefs claimed by him shall be reduced by whichever of the following amounts is the lowest:
(a) an amount equal to one-half of the aggregate amount of the said deductions,
(b) the amount arrived at by multiplying by eighty the amount by which the rateable valuation exceeds £20, or
num: 29
paragraphs: —The following section is hereby substituted for section 496 of the Income Tax Act, 1967 —
“496.—(1) Subject to the provisions of this section—
(a) where interest payable in the State on an advance from a bank carrying on a bona fide banking business in the State is paid to the bank without deduction of tax out of profits or gains brought into charge to tax, the person by whom the interest is paid shall be entitled, on proof of the facts, to repayment of tax on the amount of the interest,
(b) a like repayment shall on the like proof be made in the case of interest payable in the State on an advance from a person who in the opinion of the Revenue Commissioners is bona fide carrying on business as a member of a stock exchange in the State or from any person who in the opinion of the said Commissioners is bona fide carrying on the business of a discount house in the State,
num: 30
paragraphs: —(1) This section applies to payments of interest (other than interest on a loan secured by an instalment promissory note of the kind referred to in section 50 (2) or interest to which section 31 (2) applies) in respect of any period beginning on or after the 10th day of January, 1974, made before the passing of this Act from which tax was deducted under section 433 or 434 of the Income Tax Act, 1967 .
(2) Payments of interest to which this section applies shall be deemed to be payments not made out of profits or gains brought into charge, whether or not they are such payments, and subsections (2) to (5) of section 434 of the Income Tax Act, 1967 , shall apply to the said payments as they apply to payments specified in subsection (1) of that section.
num: 31
paragraphs: —(1) In this section “company” means any body corporate.
num: 32
paragraphs: —(1) Where a person—
(a) disposes of his only or main residence and acquires another residence for use as his only or main residence,
(b) obtains a loan the proceeds of which are used to defray, in whole or in part, the cost of the acquisition or the disposal or both, and
(c) pays interest on the loan (and on any subsequent loan the proceeds of which are used to repay, in whole or in part, the first-mentioned loan or any such subsequent loan or to pay interest on any such loan) in respect of the period of twelve months from the date of the making of the first-mentioned loan, he shall be entitled, on proof of the facts, to repayment of tax under section 496 of the Income Tax Act, 1967 , as amended by section 29, on the amount of that interest as if no other interest had been paid by him in respect of the aforementioned period of twelve months.
(2) Subsection (1) shall not apply to a loan the proceeds of which are applied for some other purpose before being applied for the purpose specified in that subsection.
num: 33
paragraphs: —(1) (a) In this section and sections 34 and 35—
“ordinary share capital” has the meaning assigned to it by section 323 of the Income Tax Act, 1967 ;
“control” has the meaning assigned to it by section 16 of the Finance (Miscellaneous Provisions) Act, 1968 ;
“material interest”, in relation to a company, means the beneficial ownership of, or the ability to control, directly or through the medium of a connected company or connected companies or by any other indirect means, more than 5 per cent, of the ordinary share capital of the company.
(b) For the purposes of this section and sections 34 and 35 a company shall be regarded as connected with another company if it would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 , and if it is such a company as is referred to in subsection (2) (a).
(2) This section applies to a loan to a company (referred to subsequently in this section and in section 35 (1) as the investing company) to defray money applied—
(a) in acquiring any part of the ordinary share capital of—
num: 34
paragraphs: —(1) This section applies to a loan to an individual to defray money applied—
(a) in acquiring any part of the ordinary share capital of—
num: 35
paragraphs: —(1) If at any time after the application of the proceeds of a loan to which section 33 or 34 applies the investing company or the individual (referred to subsequently in this section as the borrower) has recovered any amount of capital from the company concerned or from a connected company without using that amount in repayment of the loan, the borrower shall be treated for the purposes of this section as if he had at that time repaid that amount out of the loan, and so that out of the interest otherwise eligible for relief and payable for any period after that time there shall be deducted an amount equal to interest on the amount of capital so recovered. If part only of such a loan fulfils the conditions in section 33 or 34 so as to afford relief for interest on that part, the deduction to be made under this subsection shall be made wholly out of interest on that part.
(2) The borrower shall be treated as having recovered an amount of capital from the company or from a connected company if—
(a) the borrower receives consideration of that amount or value for the sale of any part of the ordinary share capital of the company or of a connected company or any consideration of that amount or value by way of repayment of any part of that ordinary share capital, or
(b) the company or a connected company repays that amount of a loan or advance from him, or
(c) the borrower receives consideration of that amount or value for assigning any debt due to him from the company or from a connected company.
In the case of a sale or assignment otherwise than by way of a bargain made at arm's length, the sale or assignment shall be deemed to be for consideration of an amount equal to the market value of what is disposed of.
(3) Sections 33 (3) and 34 (2) and subsections (1) and (2) shall apply to a loan within section 33 (2) (c) or 34 (1) (c) as if it, and any loan it replaces, were one loan, and—
(a) references to the application of the proceeds of the loan were references to the application of the proceeds of the original loan, and
(b) any restriction under subsection (1) which applied to any loan which has been replaced applied also to the loan which replaces it.
(4) Sections 33 (2) and 34 (1) shall not apply to a loan unless it is made in connection with the application of the money and either on the occasion of its application, or within what is in the circumstances a reasonable time from the application of the money, and those subsections shall not apply to a loan the proceeds of which are applied for some other purpose before being applied as described in those subsections.
(5) Interest eligible for relief under sections 33 and 34 shall be deducted from or set off against the income of the borrower for the year of assessment in which the interest is paid, and tax shall be discharged or repaid accordingly and such interest shall not be eligible for relief under any provision of the Income Tax Acts apart from those sections.
num: 36
paragraphs: —(1) This section applies to a loan to an individual to defray money applied—
(a) in purchasing a share in a partnership, or
(b) in contributing money to a partnership by way of capital or a premium, or in advancing money to the partnership, where the money contributed or advanced is used wholly and exclusively for the purposes of the trade or profession carried on by the partnership, or
(c) in paying off another loan where relief could have been obtained under this section for interest on that other loan if it had not been paid off (on the assumption, if the loan was free of interest, that it carried interest).
(2) Relief shall be given in respect of any payment of interest by the individual on the loan—
(a) if throughout the period from the application of the proceeds of the loan until the interest was paid he has personally acted in the conduct of the trade or profession carried on by the partnership as a partner therein, and
(b) if he shows that in that period he has not recovered any capital from the partnership, apart from any amount taken into account under the next following subsection.
(3) If at any time after the application of the proceeds of the loan the individual has recovered any amount of capital from the partnership without using that amount in repayment of the loan, he shall be treated for the purposes of this section as if he had at that time repaid that amount out of the loan, and so that out of the interest otherwise eligible for relief and payable for any period after that time there shall be deducted an amount equal to interest on the amount of capital so recovered. If part only of such a loan fulfils the conditions in this section, so as to afford relief for interest on that part, the deduction to be made under this subsection shall be made wholly out of interest on that part.
(4) The individual shall be treated as having recovered an amount of capital from the partnership if—
(a) he receives a consideration of that amount or value for the sale of any part of his interest in the partnership, or
(b) the partnership returns any amount of capital to him or repays any amount advanced by him, or
(c) he receives a consideration of that amount or value for assigning any debt due to him from the partnership.
In the case of a sale or assignment otherwise than by way of a bargain made at arm's length, the sale or assignment shall be deemed to be for consideration of an amount equal to the market value of what is disposed of.
(5) Subsections (2), (3) and (4) shall apply to a loan within subsection (1) (c) as if it, and any loan it replaces, were one loan, and—
(a) references to the application of the proceeds of the loan were references to the application of the proceeds of the original loan, and
(b) any restriction under subsection (3) which applied to any loan which has been replaced applied also as respects the loan which replaces it.
(6) Subsection (1) shall not apply to a loan unless it is made in connection with the application of the money, and either on the occasion of its application, or within what is in the circumstances a reasonable time from the application of the money, and that subsection shall not apply to a loan the proceeds of which are applied for some other purpose before being applied as described in that subsection.
(7) Interest eligible for relief under this section shall be deducted from or set off against the income of the individual for the year of assessment in which the interest is paid, and tax shall be discharged or repaid accordingly, and such interest shall not be eligible for relief under any provision of the Income Tax Acts apart from this section.
num: 37
paragraphs: —If at any time after the 10th day of January, 1974, a person borrows money to replace, in whole or in part, capital in any form formerly employed in any trade, profession or other business carried on by him tax in respect of the profits or gains of which is charged under Schedule D, and which capital was, after the 10th day of January, 1974, but within the five years preceding the date of replacement, withdrawn from such use for use otherwise than in connection with a trade, profession or other business carried on by him, interest on such borrowed money shall not be regarded as interest wholly and exclusively laid out or expended for the purposes of a trade, profession or other business.
num: 38
paragraphs: —(1) In relation to connected persons the references in section 496 (2) of the Income Tax Act, 1967 , and sections 44 and 52 to £500 and £2,000 shall in the case of each such person be taken to be references to the proportion of £500 or £2,000, as the case may be, which the interest paid by that person bears to the aggregate of the interest paid by all the connected persons.
(2) For the purposes of this section a person is connected with an individual if that person is the individual's husband or wife and a company shall be regarded as connected with an individual or with another company if it would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 .
num: 39
paragraphs: —(1) It is hereby declared that any provision made before or after the passing of this Act, whether orally or in writing, for the payment of interest “less tax”, or using words to that effect, is to be construed, in relation to interest payable without deduction of tax, as if the words “less tax”, or the equivalent words, were not included.
num: 40
paragraphs: —(1) In computing for the purposes of tax for the year 1974-75 or any subsequent year of assessment the profits or gains arising from a trade or profession in a basis period falling wholly or partly before the 10th day of January, 1974, there may, subject to section 61 of the Income Tax Act, 1967 , be deducted—
(a) the gross amount of any annual interest paid under deduction of tax before the 10th day of January, 1974, in respect of a period ended before that date, and
(b) the amount of any interest paid to a bank or a person carrying on business as a member of a stock exchange or of a discount house relief for which was allowed under section 496 of the Income Tax Act, 1967 , for the year of assessment in which the interest was paid.
num: 41
paragraphs: —(1) This section applies as respects any transaction effected with reference to the lending of money or the giving of credit, or the varying of the terms on which money is lent or credit is given, or which is effected with a view to enabling or facilitating any such arrangement concerning the lending of money or the giving of credit.
This subsection has effect whether the transaction is effected between the lender or creditor and the borrower or debtor, or between either of them and a person connected with the other or between a person connected with one and a person connected with the other.
num: 42
paragraphs: —(1) Section 61 (l) of the Income Tax Act, 1967 , is hereby amended by the deletion of “any annual interest, or” and by the insertion after “payment” of “(other than interest)” and the said section 61 (l), as so amended, is set out in the Table to this section.
(2) This section shall apply for the year 1974-75 and subsequent years of assessment to any payment of annual interest whenever made and for the year 1973-74 to any payment of annual interest in respect of any period beginning on or after the 10th day of January, 1974.
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(l) any annuity, or other annual payment (other than interest) payable out of the profits or gains;
num: 43
paragraphs: — Section 75 of the Income Tax Act, 1967 , is hereby amended by the addition of the following subsections—
“(3) Interest on a debt which having been payable subject to deduction of tax ceases at any time to be so payable shall be deemed to arise from a separate source acquired by the creditor at that time and subsection (1) shall not apply to such interest.
(4) Interest on a debt which having been payable in full begins at any time to be payable subject to deduction of tax shall be deemed to have arisen from a separate source which the creditor ceased to possess at that time and subsection (1) shall not apply to such interest.”.
num: 44
paragraphs: —In relation to annual interest in respect of any period beginning on or after the 10th day of January, 1974, section 76 (1) (c) of the Income Tax Act, 1967 , shall not apply—
(a) for the year of assessment 1973-74, to the excess of the interest over £500, or
(b) for the year of assessment 1974-75, or for any subsequent year of assessment, to the excess of the interest over £2,000.
num: 45
paragraphs: — Section 77 (3) of the Income Tax Act, 1967 , is hereby amended by the substitution for “subsection (2)” of “subsection (2) or (4)” and the said section 77 (3), as so amended, is set out in the Table to this section.
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num: 46
paragraphs: —Notwithstanding the foregoing provisions of this Chapter, income arising outside the State which if it had arisen in the State would be chargeable under Case V of Schedule D shall be deemed to be income to which the provisions of section 81 of the Income Tax Act, 1967 , so far as they relate to deductions to be made by reference to subsection (5) (e) of that section, apply.
num: 47
paragraphs: — Section 219 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (1) of the following subsection:
num: 48
paragraphs: — Section 221 (2) of the Income Tax Act, 1967 , is hereby amended—
(a) by the insertion after the first subparagraph of paragraph (c) of the following proviso:
“Provided that in a case to which section 220 does not apply no deduction shall be made in relation to interest in respect of any period beginning on or after the 10th day of January, 1974—
(a) for the year of assessment 1973-74, on the excess of the interest over £500, or
(b) for the year of assessment 1974-75, or for any subsequent year of assessment, on the excess of the interest over £2,000.”,
(b) by the insertion after paragraph (e) of the following proviso:
“Provided that in relation to interest in respect of any period beginning on or after the 10th day of January, 1974, the aggregate of the appropriate proportions of that interest shall not exceed—
(a) for the year of assessment 1973-74, the sum of £500, or
(b) for the year of assessment 1974-75, or for any subsequent year of assessment, the sum of £2,000.”, and
(c) by the addition to paragraph (g) of “or as a deduction authorised under section 81 (5) (e).”,
and the said paragraphs, as so amended, are set out in the Table to this section.
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(2) (c) Where in any year of assessment a society pays share interest or loan interest (other than loan interest in respect of which a claim such as is mentioned in paragraph (a) is made) without deduction of tax in accordance with subsection (1), it may claim, in a case in which section 220 applies, that the appropriate proportion of the total amount so paid, or, in any other case, that the total amount so paid, be deducted from its total income for that year and, where such a claim is made, any appropriate relief from tax shall be given by repayment or otherwise.
Provided that in a case to which section 220 does not apply no deduction shall be made in relation to interest in respect of any period beginning on or after the 10th day of January, 1974—
(a) for the year of assessment 1973-74, on the excess of the interest over £500, or
(b) for the year of assessment 1974-75, or for any subsequent year of assessment, on the excess of the interest over £2,000.
Section 307 (5) (6) shall apply to a claim under this paragraph as those subsections apply to a claim under section 307, except that it shall not be necessary to use a prescribed form.
(2) (e) In this subsection “the appropriate proportion” of any amount of interest or annual payment paid by a society in a year of assessment means the portion of that amount which bears to the whole the same proportion as the amount of the society's total income for the year bears to what would, but for section 220, have been the amount of the society's total income for that year.
Provided that in relation to interest in respect of any period beginning on or after the 10th day of January, 1974, the aggregate of the appropriate proportions of that interest shall not exceed—
(a) for the year of assessment 1973-74, the sum of £500, or
(b) for the year of assessment 1974-75, or for any subsequent year of assessment, the sum of £2,000.
(2) (g) Any reference in the foregoing provisions of this subsection to loan interest or other interest does not include a reference to interest which is allowable as a deduction in the computation of the profits or gains of a trade carried on by the society or as a deduction authorised under section 81 (5) (e).
num: 49
paragraphs: —(1) Sections 231 (4) (a), 232 (2) and 233 (2) (a) of the Income Tax Act, 1967 , are hereby amended by the substitution of “an annual payment” for “a payment of interest” in each place where it occurs and the said sections 231 (4) (a), 232 (2) and 233 (2) (a), as so amended, are set out in the Table to this section.
(2) This section shall be deemed to have come into force and shall take effect as on and from the 6th day of April, 1973.
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num: 50
paragraphs: —(1) Subject to the provisions of subsection (2) and sections 30 and 31 , sections 433 and 434 of the Income Tax Act, 1967 , so far as they relate to interest of money, shall not apply to any such interest in respect of any period beginning on or after the 10th day of January, 1974.
(2) Subsection (1) shall not apply to interest on any loan secured by an instalment promissory note signed before the 6th day of April, 1974, under the terms of which the borrower promised to make periodic payments which include a sum representing interest after deduction of income tax therefrom at the rate for the time being in force.
(3) In subsection (2) “interest” means—
(a) in the case of a loan the terms of which provide for the payment of interest “less tax” or use words to that effect, the interest which would be payable if the words “less tax” or the equivalent words were not included, and
(b) in the case of a loan the terms of which provide for the payment of interest at such a rate (subsequently referred to as the gross rate) as, after deduction of tax at the rate for the time being in force, is equal to a stated rate, interest at the gross rate.
(4) Payments of such interest as is referred to in subsection (2) in respect of any period beginning on or after the 10th day of January, 1974, shall be deemed to be payments not made out of profits or gains brought into charge, whether or not they are such payments, and subsections (2) to (5) of section 434 of the Income Tax Act, 1967 , shall apply to the said payments as they apply to payments specified in subsection (1) of that section.
num: 51
paragraphs: —(1) Section 535 (1) (b) of the Income Tax Act, 1967 , is hereby amended by the deletion of “annual interest” and by the insertion after “annual payment” of “(other than interest)” and the said section 535 (1) (b), as so amended, is set out in the Table to this section.
(2) This section shall apply for the year 1974-75 and subsequent years of assessment to any payment of annual interest whenever made and for the year 1973-74 to any payment of annual interest in respect of any period beginning on or after the 10th day of January, 1974.
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(1) (b) no deduction shall be made on account of any annuity or other annual payment (other than interest) to be paid out of such profits or gains in regard that a proportionate part of the tax is allowed to be deducted on making any such payment.
num: 52
paragraphs: —In relation to annual interest in respect of any period beginning on or after the 10th day of January, 1974, paragraph 1 (2) of Part III of Schedule 6 to the Income Tax Act, 1967 , shall not apply—
(a) for the year of assessment 1973-74, to the excess of the interest over £500, or
(b) for the year of assessment 1974-75, or for any subsequent year of assessment, to the excess of the interest over £2,000.
num: 53
paragraphs: —(1) The foregoing provisions of this Chapter shall, with any necessary modifications, apply for the purposes of corporation profits tax.
(2) Section 53 (2) of the Finance Act, 1920 , is hereby amended by the addition to the proviso of the following paragraph:
num: 54
paragraphs: —(1) In this section—
“director” has the same meaning as in section 119 of the Income Tax Act, 1967 ;
“emoluments” has the same meaning as in section 111 (4) of the Income Tax Act, 1967 ;
“employee” means a person employed by any body of persons;
“tax-relieved company” means a body corporate which has claimed and is entitled to relief from tax under Part XXV of the Income Tax Act, 1967 .
(2) A person or body corporate shall, for the purposes of this section be regarded as connected with a tax-relieved company if that person or body corporate would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 , and a person shall be regarded as connected with another person if that person would be so regarded for the purposes of the said section 16.
(3) Where, for any year of assessment, a person—
(a) who is a director or employee of a tax-relieved company or of a body corporate connected with that company, or
(b) who is employed by a person connected with that company,
num: 55
paragraphs: —(1) Where, after the 3rd day of April, 1974, a person acquires a right to which this section applies, any gain arising to him from the disposal of that right or, except so far as it is a right to receive interest, from its exercise shall, if not falling to be taken into account as a trading receipt, be deemed to be annual profits or gains chargeable to tax under Case IV of Schedule D and shall be charged to tax accordingly.
num: 56
paragraphs: —(1) In this section—
“company” means any body corporate;
“share” means share in the share capital of a company and includes stock and any other interest in the company.
(2) If any person, as a consequence of the exercise, whether before, on or after the declaration of a distribution of profits by a company, of an option to receive in respect of shares in the company either a sum in cash or additional share capital of the company, receives such additional share capital, he shall be deemed to have received from the company, instead of such share capital, income equal to the sum he would have received if he had received the distribution in cash instead.
(3) Any income deemed under subsection (2) to have been received from a company by a person shall—
(a) if the person's profits are chargeable to corporation profits tax, be treated as profits to which Part V of the Finance Act, 1920 , applies and be charged to corporation profits tax accordingly;
num: 57
paragraphs: —For the purpose of preventing the avoiding by individuals ordinarily resident in the State of liability to tax by means of transfers of assets by virtue or in consequence whereof, either alone or in conjunction with associated operations, income becomes payable to persons resident or domiciled out of the State, it is hereby enacted as follows:—
(1) Where by virtue or in consequence of any such transfer, either alone or in conjunction with associated operations, such an individual has, within the meaning of this section, power to enjoy, whether forthwith or in the future, any income of a person resident or domiciled out of the State which, if it were income of that individual received by him in the State, would be chargeable to tax by deduction or otherwise, that income shall, whether it would or would not have been chargeable to tax apart from the provisions of this section, be deemed to be income of that individual for all the purposes of the Income Tax Acts.
(2) Where, whether before or after any such transfer, such an individual receives or is entitled to receive any capital sum the payment whereof is in any way connected with the transfer or any associated operation, any income which, by virtue or in consequence of the transfer, either alone or in conjunction with associated operations, has become the income of a person resident or domiciled out of the State shall, whether it would or would not have been chargeable to tax apart from the provisions of this section, be deemed to be the income of that individual for all the purposes of the Income Tax Acts.
In this subsection “capital sum” means—
(a) any sum paid or payable by way of loan or repayment of a loan, and
(b) any other sum paid or payable otherwise than as income, being a sum which is not paid or payable for full consideration in money or money's worth.
(3) Subsections (1) and (2) shall not apply if the individual shows in writing or otherwise to the satisfaction of the Revenue Commissioners either—
(a) that the purpose of avoiding liability to taxation was not the purpose or one of the purposes for which the transfer or associated operations or any of them was effected; or
(b) that the transfer and any associated operations were bona fide commercial transactions and were not designed for the purpose of avoiding liability to taxation.
In any case where a person is aggrieved by a decision taken by the Revenue Commissioners in exercise of their functions under this subsection the person shall be entitled to appeal to the Appeal Commissioners against the decision of the Revenue Commissioners and the Appeal Commissioners shall hear and determine the appeal as if it were an appeal against an assessment to tax 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.
(4) For the purposes of this section “an associated operation” means, in relation to any transfer, an operation of any kind effected by any person in relation to any of the assets transferred or any assets representing, whether directly or indirectly, any of the assets transferred, or to the income arising from any such assets, or to any assets representing, whether directly or indirectly, the accumulations of income arising from any such assets.
(5) An individual shall, for the purposes of this section, be deemed to have power to enjoy income of a person resident or domiciled out of the State if—
(a) the income is in fact so dealt with by any person as to be calculated, at some point of time, and whether in the form of income or not, to enure for the benefit of the individual, or
(b) the receipt or accrual of the income operates to increase the value to the individual of any assets held by him or for his benefit, or
(c) the individual receives or is entitled to receive, at any time, any benefit provided or to be provided out of that income or out of moneys which are or will be available for the purpose by reason of the effect or successive effects of the associated operations on that income and on any assets which directly or indirectly represent that income, or
(d) the individual has power, by means of the exercise of any power of appointment or power of revocation or otherwise, to obtain for himself, whether with or without the consent of any other person, the beneficial enjoyment of the income, or may, in the event of the exercise of any power vested in any other person, become entitled to the beneficial enjoyment of the income, or
(e) the individual is able in any manner whatsoever, and whether directly or indirectly, to control the application of the income.
(6) In determining whether an individual has power to enjoy income within the meaning of this section, regard shall be had to the substantial result and effect of the transfer and any associated operations, and all benefits which may at any time accrue to the individual (whether or not he has rights at law or in equity in or to those benefits) as a result of the transfer and any associated operations shall be taken into account irrespective of the nature or form of the benefits.
(7) For the purposes of this section, any body corporate incorporated outside the State shall be treated as if it were resident out of the State whether it is so resident or not.
(8) For the purposes of this section—
(a) a reference to an individual shall be deemed to include the wife or husband of the individual,
(b) “assets” includes property or rights of any kind and “transfer”, in relation to rights, includes the creation of those rights,
(c) “benefit” includes a payment of any kind,
(d) references to income of a person resident or domiciled out of the State shall, where the amount of the income of a company for any year or period has been apportioned under section 530 of the Income Tax Act, 1967 , include references to so much of the income of the company for that year or period as is equal to the amount so apportioned to that person,
(e) references to assets representing any assets, income or accumulations of income include references to shares in or obligations of any company to which, or obligations of any other person to whom, those assets, that income or those accumulations are or have been transferred,
(f) “company” means any body corporate or unincorporated association.
(9) The provisions of this section shall apply for the purposes of assessment to tax for the year 1974-75 and subsequent years, and shall apply in relation to transfers of assets and associated operations whether carried out before or after the commencement of this Act.
num: 58
paragraphs: —(1) Tax chargeable by virtue of the preceding section shall be charged under Case IV of Schedule D.
(2) In computing the liability to tax of an individual chargeable by virtue of the preceding section, the same deductions and reliefs shall be allowed as would have been allowed if the income deemed to be his by virtue of that section had actually been received by him.
(3) Where an individual has been charged to tax on any income deemed to be his by virtue of the preceding section and that income is subsequently received by him, it shall be deemed not to form part of his income again for the purposes of the Income Tax Acts.
num: 59
paragraphs: —(1) The Revenue Commissioners or such officer as the Revenue Commissioners may appoint may by notice in writing require any person to furnish them within such time as they may direct (not being less than twenty-eight days) with such particulars as they think necessary for the purposes of sections 57, 58 and 60.
(2) The particulars which a person must furnish under this section, if he is required by such a notice so to do, include particulars—
(a) as to transactions with respect to which he is or was acting on behalf of others, and
(b) as to transactions which in the opinion of the Revenue Commissioners or of such officer as the Revenue Commissioners may appoint it is proper that they should investigate for the purposes of sections 57, 58 and 60 notwithstanding that, in the opinion of the person to whom the notice is given, no liability to tax arises under the said sections.
(c) as to whether the person to whom the notice is given has taken or is taking any, and if so what, part in any, and if so what, transactions of a description specified in the notice.
(3) Notwithstanding anything in subsection (2), a solicitor shall not be deemed for the purposes of paragraph (c) thereof to have taken part in a transaction by reason only that he has given professional advice to a client in connection with that transaction, and shall not, in relation to anything done by him on behalf of a client, be compellable under this section, except with the consent of his client, to do more than state that he is or was acting on behalf of a client, and give the name and address of his client and also—
(a) in the case of anything done by the solicitor in connection with the transfer of any asset by or to an individual ordinarily resident in the State to or by any such body corporate as is hereinafter mentioned, or in connection with any associated operation in relation to any such transfer, the names and addresses of the transferor and the transferee or of the persons concerned in the associated operations, as the case may be;
(b) in the case of anything done by the solicitor in connection with the formation or management of any such body corporate as is hereinafter mentioned, the name and address of the body corporate;
(c) in the case of anything done by the solicitor in connection with the creation, or with the execution of the trusts, of any settlement by virtue or in consequence whereof income becomes payable to a person resident or domiciled out of the State, the names and addresses of the settlor and of that person.
The bodies corporate mentioned in the preceding provisions of this section are bodies corporate resident or incorporated outside the State which are, or if incorporated in the State would be, companies within the meaning of section 530 (6) of the Income Tax Act, 1967 .
(4) Nothing in this section shall impose on any bank the obligation to furnish any particulars of any ordinary banking transactions between the bank and a customer carried out in the ordinary course of banking business, unless the bank has acted or is acting on behalf of the customer in connection with the formation or management of any such body corporate as is mentioned in subsection (3) (b) or in connection with the creation, or with the execution of the trusts, of any such settlement as is mentioned in subsection (3) (c).
(5) In this section “settlement” and “settlor” have the meanings assigned to them by section 16 (3) (h) of the Finance (Miscellaneous Provisions) Act, 1968 .
num: 60
paragraphs: —Where any income of any person is by virtue of any provisions of the Income Tax Acts, and in particular, but without prejudice to the generality of the foregoing, by virtue of section 57, to be deemed to be income of any other person, that income is not exempt from tax either—
(a) as being derived from any stock or other security to which section 464 , 468 , 470 or 474 of the Income Tax Act, 1967 , applies; or
(b) by virtue of section 50 or 462 of the Income Tax Act, 1967 ,
by reason of the first-mentioned person not being resident, or not being ordinarily resident, or being neither domiciled nor ordinarily resident, in the State.
num: 61
paragraphs: —All the provisions of the Income Tax Acts relating to the charge, assessment, collection and recovery of tax, to appeals against assessments and to cases to be stated for the opinion of the High Court shall apply to tax chargeable by virtue of section 57 subject to any necessary modifications.
num: 62
paragraphs: —(1) This section applies to—
(a) rent in respect of premises, or
(b) interest on borrowed money employed in the purchase, improvement or repair of premises,
payable by a person who is chargeable to tax in accordance with the provisions of section 81 of the Income Tax Act, 1967 (inserted by the Finance Act, 1969 ), on the profits or gains arising from rent in respect of those premises for a period prior to the date on which the premises are first occupied by a lessee for the purpose of a trade or undertaking or for use as a residence.
(2) No deduction shall be allowed, for the year 1974-75 or any subsequent year of assessment, under subsection (5) of the said section 81 in respect of rent or interest to which this section applies.
(3) Where, for the year 1973-74 or any earlier year of assessment—
(a) a deduction such as is referred to in subsection (2) has been allowed under subsection (5) of the said section 81 and there is a deficiency within the meaning of subsection (4) of the said section 81, or
(b) an amount falls to be treated as a loss under section 89A of the Income Tax Act, 1967 , (inserted by the Finance (Miscellaneous Provisions) Act, 1968 ), by virtue of an interest payment, so much of any such deficiency as is attributable to the allowance of the deduction aforesaid or any such amount treated as a loss or any portion of such amount shall not be carried forward, or set against profits or gains for the year 1974-75 or any subsequent year of assessment under the provisions of section 89 or 310 of the Income Tax Act, 1967 .
num: 63
paragraphs: —(1) Section 20 of the Finance (Miscellaneous Provisions) Act, 1968 , is hereby amended by—
(a) the substitution in subsection (1) of “development or the securing of the development of land and after the development” for “construction or the securing of the construction of a building and after the construction”,
(b) the substitution of the following paragraph for paragraph (b) of subsection (2):
“(b) at the time of the sale the company has (directly or indirectly) an interest in the development and the value of that interest and any interest which the company so has at that time in any other development (not being a development completed more than six years before that time nor a development in relation to which the condition specified in paragraph (c) is not satisfied) carried out or secured by the company amounts to one-fifth or more of the net assets of the company;”,
(c) the substitution of “development” for “building” in each place where it occurs in subsections (4), (9), (10) and (13) (c),
(d) the substitution of the following subsection for subsection (11):
“(11) Where a development has been commenced or carried out by a company on land in which a company connected with that company has an interest and after the development has commenced and not later than six years after its completion a person acquires control of the first company, then, as respects sales to that person of shares in the company having the interest in the land (whether effected before or after that person acquires control of the first company), the foregoing subsections shall apply as they apply to such a company as is therein mentioned but with the substitution for references to an interest in the development of references to an interest in the land.”, and
(e) the substitution of the following subsection for subsection (12):
“(12) For the purposes of the foregoing subsections an uncompleted development shall be taken to include so much of any materials belonging to the company as are required for the development and a development whether completed or not shall be taken to include the land related to the development.”,
and the said subsections (1), (4), (9), (10) and (13) (c), as so amended are set out in the Table to this section.
(2) Section 20 of the Finance (Miscellaneous Provisions) Act, 1968 , as amended by subsection (1), shall not apply or have effect in any case where the shares of the relevant company were sold before the 3rd day of April, 1974.
TABLE
num: 64
paragraphs: —(1) Section 15 (2) (f) of the Finance Act, 1972 , and the proviso to paragraph 4 of Schedule 3 to the Income Tax Act, 1967 , shall cease to have effect.
num: 65
paragraphs: — Section 235 of the Income Tax Act, 1967 , is hereby amended—
(a) by the insertion in paragraph (b) of subsection (1) after “in his old age” of “or under a contract for the time being approved under section 235A”,
(b) by the substitution for the part of subsection (2) from the end of paragraph (e) to the end of the subsection of the following:
“and that it does include provision securing that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment:
Provided that the contract may provide for the payment to the individual at the time the annuity commences to be payable, but not before the 6th day of April, 1974, of a lump sum by way of commutation of part of the annuity not exceeding one-fourth of the value of the annuity if the individual elects, at or before the time when the annuity first becomes payable to him, to be paid the lump sum.”,
(c) by the insertion in subsection (3) after paragraph (c) of the following paragraph:
“(cc) if the individual's occupation is one in which persons customarily retire after attaining the age of seventy, for the annuity to commence after he attains that age (but not after he attains the age of eighty);”,
(d) by the insertion in subsection (4)—
(i) after “trust scheme” of “or part of a trust scheme”,
(ii) after “the scheme” of “or the aforesaid part of the scheme”, and
(iii) after “a scheme” of “or part of a scheme”,
and the said paragraph (b) and subsections (2), (3) and (4), as so amended, are set out in the Table to this section.
TABLE
(b) pays a premium or other consideration under an annuity contract for the time being approved by the Revenue Commissioners as being a contract the main benefit secured by which is a life annuity for the individual in his old age or under a contract for the time being approved under section 235A (hereinafter in this Chapter referred to as a qualifying premium),
relief from tax may be given in respect of the qualifying premium under section 236.
(2) Subject to subsection (3), the Revenue Commissioners shall not approve a contract unless it appears to them to satisfy the conditions that it is made by the individual with a person lawfully carrying on in the State the business of granting annuities on human life, and that it does not—
(a) provide for the payment by that person during the life of the individual of any sum except sums payable by way of annuity to the individual,
(b) provide for the annuity payable to the individual to commence before he attains the age of sixty or after he attains the age of seventy,
(c) provide for the payment by that person of any other sums except sums payable by way of annuity to the individual's widow or widower and any sums which, in the event of no annuity becoming payable either to the individual or to a widow or widower, are payable to the individual's personal representatives by way of return of premiums, by way of reasonable interest on premiums or by way of bonuses out of profits,
(d) provide for the annuity, if any, payable to a widow or widower of the individual to be of a greater annual amount than that paid or payable to the individual, or
(e) provide for the payment of any annuity otherwise than for the life of the annuitant,
and that it does include provision securing that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment:
Provided that the contract may provide for the payment to the individual at the time the annuity commences to be payable, but not before the 6th day of April, 1974, of a lump sum by way of commutation of part of the annuity not exceeding one-fourth of the value of the annuity if the individual elects, at or before the time when the annuity first becomes payable to him, to be paid the lump sum.
(3) The Revenue Commissioners may, if they think fit, and subject to any conditions they think proper to impose, approve a contract otherwise satisfying the foregoing conditions, notwithstanding that the contract provides for one or more of the following matters:
(a) for the payment after the individual's death of an annuity to a dependant not the widow or widower of the individual;
(b) for the payment to the individual of an annuity commencing before he attains the age of sixty, if the annuity is payable on his becoming permanently incapable through infirmity of mind or body of carrying on his own occupation or any occupation of a similar nature for which he is trained or fitted;
(c) if the individual's occupation is one in which persons customarily retire before attaining the age of sixty, for the annuity to commence before he attains that age (but not before he attains the age of fifty);
(cc) if the individual's occupation is one in which persons customarily retire after attaining the age of seventy for the annuity to commence after he attains that age (but not after he attains the age of eighty);
(d) for the annuity payable to any person to continue for a term certain (not exceeding ten years) notwithstanding his death within that term, or for the annuity payable to any person to terminate, or be suspended, on marriage (or remarriage) or in other circumstances;
(e) in the case of an annuity which is to continue for a term certain, for the annuity to be assignable by will, and in the event of any person dying entitled to it, for it to be assignable by his personal representatives in the distribution of the estate so as to give effect to a testamentary disposition, or to the rights of those entitled on intestacy or to an appropriation of it to a legacy or to a share or interest in the estate.
(4) The foregoing provisions of this section shall apply in relation to a contribution under a trust scheme or part of a trust scheme approved by the Revenue Commissioners as they apply in relation to a premium under an annuity contract so approved, with the modification that, for the condition as to the person with whom the contract is made, there shall be substituted a condition that the scheme or the aforesaid part of the scheme—
(a) is established under the law of, and administered in, the State,
(b) is established for the benefit of individuals engaged in or connected with a particular occupation (or one or other of a group of occupations), and for the purpose of providing retirement annuities for them, with or without subsidiary benefits for their families or dependants, and
(c) is so established under irrevocable trusts by a body of persons comprising or representing the majority of the individuals so engaged in the State,
and with the necessary adaptations of other references to the contract or the person with whom it is made; and exemption from income tax shall be allowed in respect of income derived from investments or deposits of any fund maintained for the purpose aforesaid under a scheme or part of a scheme for the time being approved under this subsection.
num: 66
paragraphs: —Chapter III of Part XII of the Income Tax Act, 1967 , is hereby amended by the insertion after section 235 of the following section:
“235A.— (1) The Revenue Commissioners may approve for the purposes of this Chapter a contract made by an individual with a person lawfully carrying on in the State the business of granting annuities on human life if—
(a) the main benefit secured by the contract is the provision of an annuity for the wife or husband of the individual or for any one or more dependants of the individual, or
(b) the sole benefit secured by the contract is the provision of a lump sum, on the death of the individual before he attains the age of 70 (or any later age approved under section 235 (3) (cc)), being a lump sum payable to his personal representatives.
(2) The Revenue Commissioners shall not approve a contract made by an individual with such a person as aforesaid under subsection (1) (a) unless it appears to them to satisfy the following conditions, that is to say—
(a) that any annuity payable to the wife or husband or dependant of the individual commences on the death of the individual,
(b) that any annuity payable under the contract to the individual commences at a time after the individual attains the age of 60, and, unless the individual's annuity is one to commence on the death of a person to whom an annuity would be payable under the contract if that person survived the individual, cannot commence after the time when the individual attains the age of 70, or any greater age approved under section 235 (3) (cc),
(c) that the contract does not provide for the payment by such person of any sum, other than any annuity payable to the individual's wife or husband or dependant or to the individual except, in the event of no annuity becoming payable under the contract, any sums payable to the individual's personal representatives by way of return of premiums, by way of reasonable interest on premiums or by way of bonuses out of profits,
(d) that the contract does not provide for the payment of any annuity otherwise than for the life of the annuitant,
(e) that the contract provides that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment.
(3) The Revenue Commissioners may, if they think fit, and subject to any conditions that they think proper to impose, approve a contract under subsection (1) (a) notwithstanding that, in one or more respects, it does not appear to them to satisfy the conditions specified in subsection (2).
(4) Subsections (2) and (3) of section 235 shall not apply to the approval of a contract under this section.
(5) The Revenue Commissioners may approve a trust scheme, or part of a trust scheme, otherwise satisfying the conditions specified in paragraphs (a), (b) and (c) of section 235 (4) notwithstanding that its main purpose is to provide annuities for the wives, husbands and dependants of the individuals, or lump sums payable to the individuals' personal representatives on death and—
(a) the preceding provisions of this section shall apply, with any necessary modifications, in relation to such approval,
(b) the provisions of this Chapter shall apply to the scheme or part of the scheme when so approved as they apply to a contract approved under this section,
(c) the exemption from income tax provided in section 235 (4) shall apply to the scheme or part of the scheme when so approved.
(6) Except as otherwise provided in this Chapter, any reference in the Income Tax Acts to a contract, scheme or part of a scheme approved under section 235 shall include a reference to a contract, scheme or part of a scheme approved under this section.
(7) Approval under this section shall not affect relief for a year of assessment before the year 1974-75.”.
num: 67
paragraphs: —(1) Section 236 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsections (1) and (2) of the following subsections:
“(1) Where relief is to be given under this section in respect of any qualifying premium paid by an individual, the amount of that premium shall, subject to the provisions of this section, be deducted from or set off against his relevant earnings for the year of assessment in which the premium is paid.
num: 68
paragraphs: —(1) In this section—
“the Board” means An Bord Bainne Co-operative Limited;
“the Commission” means the Pigs and Bacon Commission;
“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 and Fisheries;
“pigmeat product” means bacon and cuts thereof including ham, pork carcases and pork sides and cuts thereof, unrendered pig fat and canned pigmeat products;
“the relevant enactments” means Part III of the Finance (Miscellaneous Provisions) Act, 1956 , and Chapter IV of Part XXV of the Income Tax Act, 1967 .
(2) Where, whether before or after the passing of this Act—
(a) a body corporate produces a pigmeat product and sells it to the Commission, and
(b) that product is exported out of the State by the Commission.
the relevant enactments shall apply as if the said product had been exported out of the State by the body corporate, and any amount receivable by the body corporate from the sale of the said product to the Commission shall be deemed for the purposes of the relevant enactments to be an amount receivable from the sale of goods so exported.
(3) Where, whether before or after the passing of this Act—
(a) a body corporate manufactures a milk product and sells it to the Board, and
(b) that product is exported out of the State by the Board,
the relevant enactments shall apply as if the said product had been exported out of the State by the body corporate, and any amount receivable by the body corporate from the sale of the said product to the Board shall be deemed for the purposes of the relevant enactments to be an amount receivable from the sale of goods so exported.
num: 69
paragraphs: — Section 429 of the Income Tax Act, 1967 , is hereby amended—
(a) by the insertion in the proviso to subsection (4) (inserted by the Finance Act, 1971 )—
(i) after “of the judge” of “or by giving effect to an agreement under subsection (6)”, and
(ii) after “by the judge” of “or the giving of effect to the agreement under subsection (6)”, and
(b) by the addition of the following subsection:
“(6) Where, following an application for the rehearing of an appeal by a judge of the Circuit Court in accordance with subsection (1), there is an agreement within the meaning of subparagraphs (b), (c) and (e) of section 416 (3), between the inspector and the appellant in relation to the assessment, the inspector shall give effect to the agreement and thereupon, if the agreement is that the assessment is to stand good or is to be amended, the assessment or the amended assessment, as the case may be, shall have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given.”
and the said proviso, as so amended, is set out in the Table to this section.
TABLE
Provided that if the amount of the assessment is altered by the determination of the judge or by giving effect to an agreement under subsection (6) then—
(a) if too much tax has been paid, the amount or amounts overpaid shall, save where the interest amounts to less than £1, be repaid with interest at the rate provided by section 550 (1) from the date or dates of payment of the amount or amounts giving rise to the overpayment to the date on which the repayment is made; or
(b) if too little tax has been paid, any balance shall be payable but the provisions of section 550 (2A) shall apply as if the appeal were an appeal to the Appeal Commissioners and the determination of the appeal by the judge or the giving of effect to the agreement under subsection (6) were a determination of the appeal by the Appeal Commissioners.
num: 70
paragraphs: — Section 489 (1) of the Income Tax Act, 1967 , is hereby amended by the deletion of “(including as regards the matters mentioned in paragraphs (c) and (d) of this subsection the Collector)” and the said section 489 (1), as so amended, is set out in the Table to this section.
TABLE
(1) In any proceedings in the Circuit Court or the District Court for or in relation to the recovery of income tax or sur-tax, an affidavit duly made by an officer of the Revenue Commissioners deposing to any of the following matters—
(a) that the assessment of tax was duly made,
(b) that the assessment has become final and conclusive,
(c) that the tax or any specified part thereof is due and outstanding,
(d) that demand for the payment of the tax has been duly made,
shall be evidence, until the contrary is proved, of the matters so deposed to.
num: 71
paragraphs: —The following enactments, that is to say—
(a) section 130 of the Income Tax Act, 1967 , and any regulations made thereunder;
(b) so much of any regulations made under section 127 of the said Act as refers to stamp books;
(c) sections 7 (3) and 8 (3) and the proviso to section 9 (a) of the Finance Act, 1968 ,
shall not apply or have effect in relation to tax for the year 1974-75 or any subsequent year of assessment.
num: 72
paragraphs: —(1) Where the Revenue Commissioners have reason to believe that a person is liable to send them a notification under Regulation 8 of the Income Tax (Employments) Regulations, 1960 , and has not done so, they may register his name and address in the register kept and maintained under paragraph (4) of the said Regulation 8 (in this section referred to as the register) and serve a notice on him stating that he has been so registered.
(2) Where a notice is served under subsection (1) on a person, the following provisions shall apply—
(a) if the person claims that he is not liable to send the notification aforesaid, he may, by giving notice in writing to the Revenue Commissioners within the period of fourteen days from the service of the notice under subsection (1), require the claim to be referred to the Appeal Commissioners and their decision on the claim shall be final and conclusive,
(b) if no such claim is, within the time specified in paragraph (a), required to be referred, or if such claim is required to be referred and there is a determination by the Appeal Commissioners against the appellant, the person shall be regarded, for the purposes of the aforesaid Regulations, as an employer who had sent a notification under paragraph (1) of the said Regulation 8,
(c) if a claim is required to be referred and there is a determination by the Appeal Commissioners in favour of the appellant, the Revenue Commissioners shall thereupon delete his name and address from the register.
(3) (a) Where a person whose name and address is registered in the register is not liable, under Regulation 31 of the regulations referred to in subsection (1), to remit to the Collector any amount of tax for an income tax month he shall, within the period of nine days from the end of that month, make a declaration to that effect in a form prescribed by the Revenue Commissioners and shall send that form to the Collector,
(b) where a person whose name and address is registered in the register ceases to pay emoluments to which Chapter IV of Part V of the Income Tax Act, 1967 , applies, he shall, within the period of fourteen days from the date on which he ceased to pay such emoluments, notify the Revenue Commissioners to that effect.
(4) The provisions of section 128 of the Income Tax Act, 1967 , shall apply to a non-compliance with subsection (3) as they apply to a non-compliance with regulations under Chapter IV of that Act.
num: 73
paragraphs: —(1) For the purpose of assessing tax chargeable under Schedule D, the secretary, clerk, or person acting as such, to a rating authority shall, when required by notice from an inspector, transmit to him, within such time as may be specified in the notice, true copies of the last county rate or municipal rate made by the authority for its rating area or any part thereof.
(2) The Revenue Commissioners shall pay to any such person the expenses of making all such copies, not exceeding the rate of £1 for every one hundred ratings.
(3) Every person shall, at the request of any inspector, or other officer acting in the execution of the Income Tax Acts, produce as soon as may be to such inspector or officer, as appropriate, any survey or valuation or record on which the rates for any rating area, or part thereof, are assessed, made or collected, or any rate or assessment made under any Act relating to the county rate or municipal rate, which is in his custody or possession and permit the inspector or other officer to inspect the same and to take copies thereof or extracts therefrom, without any payment.
(4) In this section “rating authority” means—
(a) the corporation of a county or other borough,
(b) the council of a county, or
(c) the council of an urban district.
num: 74
paragraphs: —(1) In this section—
“the Acts relating to corporation profits tax” means Part V of the Finance Act, 1920 , and the enactments amending or extending that Part;
“marginal coal mine” means a coal mine in the State that is being worked for the purpose of the production of coal and in respect of which the Minister for Industry and Commerce gives a certificate stating that he is satisfied that the profits derived or to be derived from the working of that mine are such that, if tax is to be charged on those profits in accordance with the provisions of the Income Tax Acts and the Acts relating to corporation profits tax, but excluding the provisions of this section, the mine is unlikely to continue to be worked.
(2) The Minister for Finance, after consultation with the Minister for Industry and Commerce, may direct, in respect of a marginal coal mine, that, for any particular year of assessment or any particular accounting period, the tax chargeable on the profits of that mine is to be reduced to such amount (including nil) as may be specified by him.
(3) Where a person is carrying on the trade of working a coal mine in respect of which the Minister for Finance gives a direction under subsection (2) in respect of a year of assessment or accounting period, an allowance shall be made as a deduction in charging the profits of the said trade to tax for that year of assessment and as a deduction in computing the profits of the said trade for purposes of corporation profits tax for that accounting period of such amount or amounts as will ensure that the tax charged in respect of the profits of the said trade shall equal the amount specified by that Minister.
num: 75
paragraphs: —The exemptions from corporation profits tax specified in section 33 (1) of the Finance Act, 1929 , shall be given in respect of the period beginning on the 1st day of January, 1974, and ending on the 31st day of December, 1974.
num: 76
paragraphs: —(1) Subject to subsection (2) of this section, where the customs duty on the goods contained in one consignment or parcel imported on or after the 1st day of September, 1974, would, when computed according to the laws for the time being in force in relation to customs duties, amount to a sum not exceeding 50 pence, the duty shall be waived.
(2) The duties chargeable on tobacco, spirits and wine shall not be waived under this section.
(3) Section 7 of the Finance Act, 1962 , shall not apply to goods imported on or after the 1st day of September, 1974.
num: 77
paragraphs: —(1) In this section “goods to which this section applies” means—
(a) the mixtures, compounds and preparations mentioned in section 4 (1) of the Finance Act, 1918 , which are imported on or after the 1st day of August, 1974, and are recognised by the Revenue Commissioners as being used for medical purposes, and
(b) the spirits mentioned in section 4 (2) of the said Finance Act, 1918 , which are used on or after the said 1st day of August, 1974, in the manufacture or preparation of any article so recognised or for scientific purposes.
(2) The Finance Act, 1920 , shall, in respect of goods to which this section applies, be amended by the substitution of the following section for section 4:
“4. Section 4 of the Finance Act, 1918 (which provides for the reduction and allowance of duty in respect of spirits used in medical preparations or for scientific purposes), shall apply to the duties on spirits imposed by this Act as it applies to duties on spirits imposed by that Act as though it were herein set out and expressly made applicable thereto, with the substitution for the sums specified in that section as the amount of reduction of duty or repayment of duty, of such sums as will relieve such spirits of the amount of duty payable thereon under this Act.”.
num: 78
paragraphs: — Section 21 of the Finance Act, 1935 , is hereby amended by the insertion of the following subsection after subsection (13):
“(13A) Any officer of the Revenue Commissioners and any member of the Garda SÃ­ochÃ¡na may, at any time between the hours of 8 a.m. and 6 p.m. on any day—
(a) enter and inspect any premises, other than a dwelling, and bring on to the premises any motor vehicle being used by him in the course of his duties,
(b) examine and take samples of any hydrocarbon oil on or in any motor vehicle on those premises,
(c) interrogate the person in charge of such vehicle in regard to such oil, and
(d) if such oil is hydrocarbon oil chargeable with either the said customs duty or the said excise duty, require of such person proof of the payment of such duty on such oil.”.
num: 79
paragraphs: — Section 5 of the Finance Act, 1962 , is hereby amended by the substitution of the following subsection for subsection (5):
“(5) Every licensed manufacturer of tobacco shall, on and after the 11th day of April, 1974, be entitled to receive a rebate as follows in respect of unmanufactured tobacco received by him upon which the duty of customs imposed by section 20 of the Finance Act, 1932 , or the duty of excise imposed by section 19 of the Finance Act, 1934 , has been paid:—
Rate of Rebate
Where the quantity received in any year commencing on the 11th day of April—
does not exceed 50,000 lbs.
£0·45 per lb. for each lb. thereof
exceeds 50,000 lbs.
£0·075 per lb. for each of the first 50,000 lbs.”.
num: 80
paragraphs: —The Orders mentioned in the Table to this section are hereby confirmed.
TABLE
S.I. No. 158 of 1973
Imposition of Duties (No. 207) (Customs Duties and Form of Customs Tariff) Order, 1973.
S.I. No. 249 of 1973
Imposition of Duties (No. 208) (Beer, Spirits and Tobacco) Order, 1973.
S.I. No. 341 of 1973
Imposition of Duties (No. 212) (Customs Duties and Form of Customs Tariff) Order, 1973.
num: 81
paragraphs: —(1) Section 65 of the Finance Act, 1973 , is hereby amended by the addition of the following:
“Provided that this section shall apply only in relation to the construction, alteration or enlargement of a building situated in the area comprising the county borough of Dublin and the county of Dublin, including the borough of Dun Laoghaire.”.
(2) This section shall come into operation on the 1st day of August, 1974, or the date of the passing of this Act, whichever is the later.
num: 82
paragraphs: —The Imposition of Duties (No. 210) (Stamp Duty on Certain Instruments) Order, 1973 , is hereby revoked as on and from the 1st day of August, 1974, or the date of the passing of this Act, whichever is the later.
num: 83
paragraphs: —(1) Subject to subsection (2) of this section, conveyances or transfers on sale of any stocks or marketable securities, instead of being chargeable with stamp duty at the rates in force immediately before the commencement of this section, shall be chargeable with that duty at the following rates:
Where the amount or value of the consideration for the sale does not exceed £5
10p
Exceeds £5 and does not exceed £100:—
For every £10 or part of £10 of such amount or value
20p
Exceeds £100 and does not exceed £300:—
For every £20 or part of £20 of such amount or value
40p
Exceeds £300:—
For every £50 or part of £50 of such amount or value
£1
(2) This section shall not apply in the case of—
(a) any conveyance or transfer of any stock or marketable security issued or made, whether before or after the commencement of this section, by or on behalf of any body corporate incorporated in the State or any body of persons formed therein, or
(b) any conveyance or transfer of any stock registered in a branch register maintained in the State by a body corporate incorporated outside the State if, according to the law in force where the body corporate is incorporated, the conveyance or transfer is capable of being registered in the branch register only,
and, in lieu thereof in any such case, such stamp duty shall be chargeable as would have been chargeable if this section had not been enacted.
(3) This section shall come into operation on the 1st day of August, 1974, or the date of the passing of this Act, whichever is the later.
num: 84
paragraphs: —(1) (a) In this section—
“the principal section” means section 22 of the Finance Act, 1950 ;
“the 1973 amending section” means section 91 of the Finance Act, 1973 ;
“the twenty-fourth additional annuity” means the sum charged on the Central Fund under subsection (4) of this section;
“the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section,
(b) references in this section to the financial year ending on the 31st day of December, 1974, are references to the period beginning on the 1st day of April, 1974, and ending on the 31st day of December, 1974.
(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1974, subsection (4) of the 1973 amending section shall, subject to subsection (8) of this section, have effect with the substitution of “£5,315,286” for “£5,452,955”.
(3) Subsection (6) of the 1973 amending section shall, subject to subsection (8) of this section, have effect with the substitution of “£3,355,284” for “£3,510,185”.
(4) A sum of £4,373,032 to redeem borrowings, and interest thereon, in respect of capital services shall, subject to subsection (8) of this section, 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, 1974.
(5) The twenty-fourth additional annuity shall be paid into the Account in such manner and at such times in the relevant financial year as the Minister may determine.
(6) Any amount of the twenty-fourth additional annuity not exceeding £2,815,015 in any financial year, may, subject to subsection (8) of this section, be applied towards defraying the interest on the public debt.
(7) The balance of the twenty-fourth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.
(8) Where, by virtue of this section or of any other enactment, an annuity to redeem borrowings, and interest thereon, in respect of capital services is charged on the Central Fund or on the growing produce thereof and an amount of that annuity may be applied towards defraying the interest on the public debt, then—
(a) only three-fourths of that annuity shall be so charged, and only three-fourths of that amount may be so applied, in the financial year ending on the 31st day of December, 1974, and
(b) one-fourth of that annuity shall be so charged, and one-fourth of that amount may be so applied, in the financial year next following the last financial year in which such annuity would, apart from this subsection, be charged,
and this section and the enactment shall be construed and shall have effect accordingly.
num: 85
paragraphs: —(1) The Provisional Collection of Taxes Act, 1927 , is hereby amended—
(a) by the substitution of “DÃ¡il Ãireann” for “the Committee on Finance” in section 2,
(b) by the substitution of the following section for section 4:
“4.—A resolution under this Act shall cease to have statutory effect upon the happening of whichever of the following events first occurs, that is to say:
(a) if a Bill containing provisions to the same effect (with or without modifications) as the resolution is not read a second time by DÃ¡il Ãireann within the next twenty days on which DÃ¡il Ãireann sits after the resolution is passed by DÃ¡il Ãireann;
(b) if those provisions of the said Bill are rejected by DÃ¡il Ãireann during the passage of the Bill through the Oireachtas;
(c) the coming into operation of an Act of the Oireachtas containing provisions to the same effect (with or without modification) as the resolution;
(d) the expiration of a period of four months from the date on which the resolution is expressed to take effect or, where no such date is expressed, from the passing of the resolution by DÃ¡il Ãireann.”,
(c) by the deletion of subsection (2) of section 5, and
(d) by the substitution of “DÃ¡il Ãireann” for “the Committee on Finance” in section 6 (1) (a),
and the said sections 2 and 6 (1) (a), as so amended, are set out in the Table to this section.
(2) This section shall come into operation on such day as the Minister for Finance appoints by order.
TABLE
num: 2
paragraphs: —Whenever a resolution (in this Act referred to as a resolution under this Act) is passed by DÃ¡il Ãireann resolving—
(a) that a new tax specified in the resolution be imposed, or
(b) that a specified permanent tax in force immediately before the end of the previous financial year be increased, reduced, or otherwise varied, or be abolished, or
(c) that a specified temporary tax in force immediately before the end of the previous financial year be renewed (whether at the same or a different rate and whether with or without modification) as from the date of its normal expiration or from an earlier date or be discontinued on a date prior to the date of its normal expiration,
and the resolution contains a declaration that it is expedient in the public interest that the resolution should have statutory effect under the provisions of this Act, the resolution shall, subject to the provisions of this Act, have statutory effect as if contained in an Act of the Oireachtas.
(1) (a) if a resolution under this Act renewing the tax (with or without modification) is not passed by DÃ¡il Ãireann within two months after the expiration of the tax, the amount of such payment or deduction shall be repaid or made good on the expiration of such two months, and
num: 86
paragraphs: —Each enactment mentioned in column (2) of the Second Schedule to this Act is hereby repealed as on and from the 6th day of April, 1974, to the extent specified in column (3) of that Schedule.
num: 87
paragraphs: —All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.
num: 88
paragraphs: —(1) This Act may be cited as the Finance Act, 1974.
(2) Part I of this Act (so far as relating to income tax, including sur-tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation profits tax) shall be construed together with Part V of the Finance Act, 1920 , and the enactments amending or extending that Part.
(3) Part II of this Act, so far as it relates to customs, shall be construed together with the Customs Acts and the said Part II, so far as it relates to duties of excise, shall be construed together with the Statutes which relate to the duties of excise and the management of those duties.
(4) Part III of this Act shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.
(5) Part I of this Act 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, 1974.
(6) 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.