Finance Act, 1965
Acts of the Oireachtas
Source: Acts of the Oireachtas

num: 1
paragraphs: —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1965, at the rate of six shillings and four pence in the pound.
(2) Sur-tax for the year beginning on the 6th day of April, 1965, shall be charged in respect of the income of any individual the total of which from all sources exceeds two thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1964.
(3) The several statutory and other provisions which were in force on the 5th day of April, 1965, in relation to income tax and sur-tax and any such provisions which came into operation on the 6th day of April, 1965, in relation thereto shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1965.
num: 2
paragraphs: —In relation to capital expenditure on scientific research incurred on or after the 6th day of April, 1965—
(a) section 5 of the Finance Act, 1946 , shall have effect—
(i) as if in subsection (3) thereof the words “and for each of the four following years of assessment,” and “one-fifth of” were omitted,
(ii) as if paragraphs (a), (b) and (e) of subsection (4) were omitted and the following paragraph were substituted for paragraph (c)—
“(c) an amount equal to the allowance made under this section in respect of that expenditure, or, if the value of the asset immediately before the cessation is less than that allowance, equal to that value, shall be treated as a trading receipt of the trade accruing immediately before the cessation;”,
(iii) as if “the amount of the allowance effectively granted” were substituted for “the total of the allowances granted” in paragraph (d) of subsection (4);
(b) section 33 of the Finance Act, 1959 , shall have effect as if the following definition were substituted for the definition of “scientific research allowance”:
“‘scientific research allowance’ means, in relation to any expenditure, the amount of any allowance made in respect of that expenditure under subsection (3) of section 5 of the Finance Act, 1946 , reduced by any amount treated as a trading receipt pursuant to paragraph (c) of subsection (4) of the said section as it applies to expenditure incurred on or after the 6th day of April, 1965;”.
num: 3
paragraphs: —(1) Where a person—
(a) during any part of a year of assessment, whether alone or jointly with another person or persons in the circumstances set out in subsection (2) of this section, or
(b) during the whole of any year of assessment, jointly as aforesaid,
num: 4
paragraphs: —(1) Notwithstanding any other provision of the Income Tax Acts—
(a) all claims of exemption or for any allowance or deduction under those Acts,
(b) all claims for repayment of tax under those Acts, and
(c) (i) all claims to relief under those Acts where the relief is measured in the provision under which it is given, and
(ii) all matters and questions relating to any relief so measured,
in relation to which a right of appeal from a decision of the Special Commissioners is, otherwise than by this section, not specifically provided,
shall be stated in such manner and form as the Revenue Commissioners may prescribe and shall be submitted to and determined by the Revenue Commissioners or such officer of the Revenue Commissioners (including an inspector of taxes) as they may authorise in that behalf, but any person aggrieved by any determination on any such claim, matter or question may, on giving notice in writing to the Revenue Commissioners or the officer within twenty-one days after notification to the person aggrieved of the determination, appeal to the Special Commissioners.
(2) The Special Commissioners shall hear and determine an appeal to them under subsection (1) of this section as if it were an appeal against an assessment to income 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.
(3) Where—
num: 5
paragraphs: — Section 5 of the Finance Act, 1929 , is hereby amended by—
(a) the addition at the end of subsection (5) of “and the powers conferred on the Special Commissioners by subsections (7) and (8) of this section may be exercised by one Special Commissioner”;
(b) the substitution for subsections (7) and (8) of the following subsections—
“(7) (a) A notice of appeal not given within the time limited by subsection (1) of this section shall be regarded as having been so given where, on an application in writing having been made to him in that behalf, the inspector of taxes or such other officer as aforesaid, being satisfied that, owing to absence, sickness or other reasonable cause, the applicant was prevented from giving notice of appeal within the time limited and that the application was made thereafter without unreasonable delay, notifies the applicant in writing that his application has been allowed.
(b) If on an application under paragraph (a) of this subsection the inspector or other officer is not satisfied as aforesaid, he shall by notice in writing inform the applicant that his application has been refused.
(c) Within fifteen days after the date of a notice under paragraph (b) of this subsection the applicant may by notice in writing require the inspector or other officer to refer his application to the Special Commissioners and, in relation to any application so referred, paragraphs (a) and (b) of this subsection shall have effect as if for every reference therein to the inspector or other officer there was substituted a reference to the Special Commissioners.
(8) In a case in which a person who has given notice of appeal does not attend before the Special Commissioners at the time and place appointed for the hearing of his appeal, subsection (6) of this section shall not have effect if—
(a) at the said time and place another person attends on behalf of the appellant and the Special Commissioners consent to hear that person, or
(b) on an application in that behalf having been made to them in writing or otherwise at or before the said time, the Special Commissioners, postpone the hearing, or
(c) on an application in writing having been made to them after the said time the Special Commissioners, being satisfied that, owing to absence, sickness or other reasonable cause, the appellant was prevented from appearing before them at the said time and place and that the application was made without unreasonable delay, direct that the appeal be treated as one the time for the hearing of which has not yet been appointed.
(8A) (a) Where action for the recovery of tax charged by an assessment, being action by way of the institution of proceedings in any court or the issue of a certificate under section 7 of the Finance Act, 1923 , has been taken, neither subsection (7) nor subsection (8) of this section shall, unless the Revenue Commissioners otherwise direct, apply in relation to that assessment until the said action has been completed.
(b) Where, in a case coming within the foregoing paragraph, an application under paragraph (a) of the said subsection (7) is allowed or, on an application under paragraph (c) of the said subsection (8), the Special Commissioners direct as therein provided, the applicant shall in no case be entitled to repayment of any sum paid or borne by him in respect of costs of any such court proceedings as aforesaid or, as the case may be, of any fees or expenses charged by the county registrar or sheriff executing a certificate under the said section 7 of the Finance Act, 1923 .”
num: 6
paragraphs: —(1) In this section “the Act” means the Finance (Miscellaneous Provisions) Act, 1956 .
(2) In subparagraph (i) of paragraph (b) of subsection (2) of section 56 of the Finance Act, 1958 (as substituted in subsection (1) of section 28 of the Finance Act, 1960 ) “1980-81” shall be substituted for “1975-76”.
(3) Where, apart from the provisions of this section, a company is entitled to claim relief under Part III of the Act, by virtue of subsection (1) of section 29 of the Finance Act, 1960 , in respect of the year 1974-75 or any earlier year of assessment, the company may, in lieu of such relief, claim relief under subsection (1) or subsection (3) of section 12 of the Act as if that year of assessment were a year of claim within the meaning of section 10 of the Act.
(4) Where a company has obtained relief under Part III of the Act by virtue of subsection (3) of this section and is subsequently entitled to relief under subsection (1) of section 29 of the Finance Act, 1960 , the last-mentioned relief shall be granted as if the last year of assessment in respect of which relief is due by virtue of subsection (3) of this section was the company's last year of claim within the meaning of section 10 of the Act:
Provided that no relief shall be given in respect of any year of assessment after the fourteenth year of assessment after the first year of claim or in respect of any year of assessment after the year 1979-80.
num: 7
paragraphs: —(1) Paragraph (1) of Rule 7 of the Miscellaneous Rules applicable to Schedule D is hereby amended—
(i) by the substitution in subparagraph (a) of “body of persons not resident in the State” for “foreign or colonial company, society, adventure, or concern; or”, and
(ii) by the deletion of subparagraph (b).
(2) The said paragraph (1) shall not extend to any payment to which Rule 19 or Rule 21 of the General Rules applies.
(3) Any reference in any provision of the Income Tax Acts to the said Rule 7 shall be construed as a reference to the said Rule 7 as amended by the foregoing subsections of this section.
(4) Subsection (1) of section 10 of the Finance Act, 1923 , is hereby amended by the substitution therein of “body of persons not resident in the State” for “foreign company, society, adventure or concern”.
(5) Subsection (1) of section 6 of the Finance Act, 1924 , is hereby amended by the substitution therein of “body of persons not resident in the State” for “foreign company, society, adventure, or concern”.
(6) This, section shall have effect as on and from the 11th day of May, 1965.
num: 8
paragraphs: —Subsection (3) of section 2 of the Finance Act, 1924 , is hereby amended by the substitution therein of “every person by whom” for “every person to whom”.
num: 9
paragraphs: —Rule (2) of Part II of the First Schedule to the Finance Act, 1929 , is hereby amended by the insertion in paragraph (b) of “and possessions” after “securities”.
num: 10
paragraphs: —Subsections (1) and (2) of section 3 of the Finance Act, 1956 , are each hereby amended by the substitution of “fifty pounds” for “twenty-five pounds”.
num: 11
paragraphs: —Paragraph (a) of the proviso to subsection (1) of section 17 of the Finance Act, 1963 , shall have effect, where the return is of interest paid or credited during a year beginning on or after the 6th day of April, 1965, as if the reference to £15 were a reference to £50.
num: 12
paragraphs: —(1) In lieu of the duty of excise imposed by subsection (1) of section 13 of the Finance Act, 1964 , there shall be charged, levied and paid on all beer brewed within the State on or after the 12th day of May, 1965, a duty of excise at the rate of fourteen pounds, seventeen shillings for every thirty-six gallons of worts of a specific gravity of one thousand and fifty-five degrees.
(2) In lieu of the duties of customs imposed by subsections (2) and (3) of section 13 of the Finance Act, 1964 , there shall, as on and from the 12th day of May, 1965, be charged, levied and paid on all beer of any description imported into the State, a duty of customs at the rate of fourteen pounds, seventeen shillings and sixpence for every thirty-six gallons of beer of which the worts were before fermentation of a specific gravity of one thousand and fifty-five degrees.
(3) There shall be allowed and paid on the exportation as merchandise or the shipment for use as stores of beer on which it is shown, to the satisfaction of the Revenue Commissioners, that the duty imposed by subsection (1) or subsection (2) of this section has been paid, a drawback calculated according to the original specific gravity of the beer, at the rate of fourteen pounds, seventeen shillings and threepence on every thirty-six gallons of beer of which the original specific gravity was one thousand and fifty-five degrees.
(4) Where, in the case of beer which is chargeable with the duty imposed by subsection (1) or subsection (2) of this section or in the case of beer on which drawback under subsection (3) of this section is payable, the specific gravity of the beer is not one thousand and fifty-five degrees, the duty or drawback shall be varied proportionately.
(5) Section 24 of the Finance Act, 1933 , shall not apply or have effect in relation to the duty of customs imposed by this section.
num: 13
paragraphs: —(1) The Finance Act, 1920 , shall, as on and from the 12th day of May, 1965, be amended by the substitution in Part I of the First Schedule thereto of the matter set out in the First Schedule to this Act for the matter inserted in that Part by section 14 of the Finance Act, 1964 , and subsection (1) of section 3 of the said Finance Act, 1920 , shall have effect accordingly.
(2) (a) This subsection applies to spirits known as whiskey which at importation are shown to the satisfaction of the Revenue Commissioners to have been wholly manufactured in Northern Ireland and to have been bottled and consigned by the distiller.
(b) The duty of customs to which subsection (1) of this section relates shall, as on and from the 12th day of May, 1965, be charged, levied and paid on spirits to which this subsection applies at the rate of ten pounds, six shillings and fourpence the gallon (computed at proof) in lieu of the rate chargeable under subsection (1) of this section.
(3) The duty of excise imposed by subsection (2) of section 3 of the Finance Act, 1920 , shall, as on and from the 12th day of May, 1965, be charged, levied and paid at the rate of ten pounds, five shillings and eleven pence the gallon (computed at proof) in lieu of the rate specified in subsection (2) of section 4 of the Finance Act, 1962 .
(4) Nothing in this section shall operate to relieve from or to prejudice or affect the additional customs duties or the additional excise duty in respect of immature spirits imposed by section 9 of the Finance Act, 1926 .
num: 14
paragraphs: —(1) In this section—
“the Act of 1935” means the Finance Act, 1935 ;
“the Act of 1964” means the Finance Act, 1964 .
(2) The duty of customs imposed by section 1 of the Finance (Customs Duties) (No. 4) Act, 1931 , shall, in respect of mineral hydrocarbon light oil chargeable with that duty, be charged, levied and paid as on and from the 12th day of May, 1965, at the rate of 3s. 4 1/12d. the gallon in lieu of the rate specified in subsection (2) of section 16 of the Act of 1964.
(3) The duty of excise imposed by section 1 of the Finance (Miscellaneous Provisions) Act, 1935 , shall, in respect of mineral hydrocarbon light oil chargeable with that duty which is sent out, on or for sale or otherwise, from the premises of the manufacturer thereof on or after the 12th day of May, 1965, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of mineral hydrocarbon oil, be charged, levied and paid at the rate of 3s. 3 1/12 d. the gallon in lieu of the rate specified in subsection (3) of section 16 of the Act of 1964.
(4) The duty of customs imposed by section 21 of the Act of 1935 shall, in respect of hydrocarbon oil chargeable with that duty, be charged, levied and paid as on and from the 12th day of May, 1965, at the rate of 2s. 8[html]d. the gallon in lieu of the rate specified in subsection (4) of section 16 of the Act of 1964.
(5) As on and from the 12th day of May, 1965, the rate of any rebate allowed under subsection (2) of section 21 of the Act of 1935 shall—
(a) in respect of hydrocarbon oil on which such rebate is allowable and on which the duty of customs mentioned in subsection (4) of this section was paid at the rate of 2s. 8[html]d. the gallon, be 2s. 8[html]d. the gallon, and
(b) in respect of hydrocarbon oil on which such rebate is allowable and on which the duty of customs mentioned in subsection (4) of this section was, by virtue of paragraph 6 of the Imposition of Duties (No. 84) (Hydrocarbon Oils) (Customs Duties) Order, 1959 , paid at the rate of 2s. 7[html]d. the gallon, be 2s. 7[html]d. the gallon,
in lieu of the rate allowable immediately before the 12th day of May, 1965, by virtue of subsection (5) of section 16 of the Act of 1964.
(6) The duty of excise imposed by section 21 of the Act of 1935 shall, in respect of hydrocarbon oil chargeable with that duty which is sent out, on or for sale or otherwise, from the premises of the manufacturer thereof on or after the 12th day of May, 1965, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of hydrocarbon oil, be charged, levied and paid at the rate of 2s. 7[html]d. the gallon in lieu of the rate specified in subsection (6) of section 16 of the Act of 1964.
(7) As on and from the 12th day of May, 1965, the rate of any rebate allowed under subsection (4) of section 21 of the Act of 1935, in respect of hydrocarbon oil on which such rebate is allowable and on which the excise duty mentioned in subsection (6) of this section was paid at the rate of 2s. 7[html]d. the gallon, shall be 2s. 7[html]d. the gallon in lieu of the rate allowable immediately before the 12th day of May, 1965, by virtue of subsection (7) of section 16 of the Act of 1964.
(8) As on and from the 12th day of May, 1965, the rate of any repayment allowed under subsection (8) of section 10 of the Finance Act, 1957 , in respect of hydrocarbon oil on which such repayment is allowable and on which either—
(a) the excise duty mentioned in subsection (6) of this section was paid at the rate of 2s. 7[html]d. the gallon, or
(b) the customs duty mentioned in subsection (4) of this section was paid at the rate of 2s. 7[html]d. the gallon or 2s. 8[html]d. the gallon,
shall be 1s. 0d. the gallon in lieu of the rate allowable immediately before the 12th day of May, 1965.
num: 15
paragraphs: —(1) The duty of customs on tobacco imposed by section 20 of the Finance Act, 1932 , shall, as on and from the 12th day of May, 1965, be charged, levied and paid at the several rates specified in Part I of the Second Schedule to this Act in lieu of the several rates specified in Part I of the Third Schedule to the Finance Act, 1964 .
num: 16
paragraphs: —(1) There shall be charged, levied and paid as on and from the 12th day of May, 1965, a duty of customs at the rate of five shillings and ten pence per gallon on all wine imported into the State in addition to the duty chargeable under section 5 of the Finance Act, 1948 , and section 14 of the Finance Act, 1949 .
(2) Section 24 of the Finance Act, 1933 , shall not apply or have effect in relation to the duty of customs imposed by this section.
num: 17
paragraphs: — Section 38 of the Finance Act, 1932 , is hereby amended by the insertion of “then, provided that the Minister for Industry and Commerce so consents,” before “the Revenue Commissioners may”.
num: 18
paragraphs: —On and after the 1st day of August, 1965, excise duty, at the rates specified in the Table annexed to this section, shall be charged, levied and paid for and upon every licence granted under section 8 of the Pawnbrokers Act, 1964 , to carry on the business of a pawnbroker.
TABLE
Rate of duty.
In the case of a licence granted to carry on the business of a pawnbroker at a particular premises in the County Borough of Dublin or in the Borough of DÃºn Laoghaire
£50.
In the case of a licence granted to carry on the business of a pawnbroker at a particular premises in any other part of the State
£10.
num: 19
paragraphs: —(1) Paragraph (b) of subsection (2) of section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952 , is hereby amended by the substitution of “three pounds or less” for “five shillings”.
(2) Subsection (1) of this section shall come into operation on the 1st day of March, 1966.
num: 20
paragraphs: —(1) In this section—
“company” means a body corporate (wherever incorporated)—
(a) in which the number of shareholders (excluding employees who are not directors of the company and any shareholder who is such as nominee of a beneficial owner of shares) is not more than fifty,
(b) which has not issued any of its shares as a result of a public invitation to subscribe for shares, and
(c) which is under the control of not more than five persons;
“company controlled by the deceased” means a company which was under the control of any one or more of the deceased, the relatives of the deceased, nominees of the deceased, or nominees of the relatives of the deceased—
(a) in a case in which the deceased died two years or more after the passing of this Act, within the period of five years before the death;
(b) in any other case, within the period commencing three years before the passing of this Act and ending at the death;
“control” means, in relation to a body corporate, the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person;
“deceased” means a person who dies after the passing of this Act;
“disposition” has the same meaning as in section 27 and section 32 of the Finance Act, 1941 , and also includes a payment of money;
“income” in relation to a company includes profits arising from trade;
“nominee” means a person (including a trustee) who may be required to exercise his voting power on the directions of, or holds shares directly or indirectly on behalf of, another person;
“non-trading company” means a company the income whereof in the twelve months preceding the death of the deceased consisted mainly of income which, if the company were an individual, would not be earned income as defined in subsection (3) of section 14 of the Income Tax Act, 1918;
“relative” means a husband or wife, ancestor, lineal descendant, or brother or sister or descendant of a brother or sister.
(2) For the purposes of this section—
(a) a company shall be deemed to be under the control of not more than five persons if any five or fewer persons together exercise, or are able to exercise, or are entitled to acquire, control, whether direct or indirect, of the company and for this purpose persons who are relatives of one another, persons who are nominees of any other person together with that other person, persons in partnership and persons interested in any shares or obligations of the company which are subject to any trust or are part of the estate of a deceased person shall respectively be treated as a single person, and
(b) a company which is controlled by any one or more of the deceased and relatives of the deceased shall be regarded as being itself a relative of the deceased.
(3) (a) Where the deceased has, either before or after the passing of this Act, made a disposition of property in favour of a company controlled by the deceased, the property shall, for all purposes of estate duty, be deemed to be property taken by the company under a disposition operating as an immediate gift inter vivos within the meaning of paragraph (c) of subsection (1) of section 2 of the Finance Act, 1894 , and any consideration received by the deceased in relation thereto shall not be treated as consideration for the purpose either of section 3 of the Finance Act, 1894 , or of subsection (1) of section 7 of that Act.
(b) Where the consideration received by the deceased for a disposition to which paragraph (a) of this subsection applies and which was made within five years of his death, or property representing such consideration, is liable to estate duty in connection with his death, the following provision shall have effect: In determining the value for estate duty purposes of the property taken under the disposition there shall be deducted, from the value which would be liable to duty if this paragraph had not been enacted, the value on which estate duty is payable of the consideration or of the property representing the consideration.
(4) (a) Where—
(i) the deceased had at any time, whether before or after the passing of this Act, made a disposition of property in favour of a company controlled by the deceased, and
(ii) he was at any time within five years of his death in receipt or enjoyment of income or benefits from the company other than dividends or interest on stock, shares, or debentures of the company,
he shall be deemed to have had an interest ceasing on his death in the net assets of the company within the meaning of paragraph (b) of subsection (1) of section 2 of the Finance Act, 1894 , with the exclusion from that paragraph of the words “holder of an office, or”.
(b) The interest to which paragraph (a) of this subsection refers shall be deemed to be an annuity equivalent to the average annual amount received or enjoyed by way of income or benefits in the relevant period, that is to say, the period of five years immediately preceding the death of the deceased and in relation to the said interest the following provisions shall apply:
(i) where the benefits enjoyed consist of or include the occupation or possession of lands or chattels, the value of the occupation or possession shall be determined in the same manner as the value of similar benefits is determined under the provisions of subsection (5) of section 21 of this Act;
(ii) where the income or benefits purport to be or to include remuneration for services rendered by the deceased to the company, the Revenue Commissioners shall deduct from the said average annual amount such sum as appears to them to be reasonable remuneration in all the circumstances of the case.
(c) In the application of subsection (7) of section 7 of the Finance Act, 1894 , to the cesser of an interest to which paragraph (a) of this subsection refers—
(i) the annual net income of the company shall be deemed to be the average of the total net income received in all accounting years or parts of accounting years falling within the relevant period referred to in paragraph (b) of this subsection;
(ii) the net value of the assets of the company shall be computed by deducting, from the principal value of the gross assets of the company at the date of death of the deceased, the liabilities of the company other than debts or liabilities due to a relative of the deceased which were not bona fide incurred for full consideration in money or money's worth given by the relative to the company.
(5) Where there pass on a death securities, whether stock or shares or debentures, in a non-trading company which is a company controlled by the deceased, the value, for all purposes of death duties, of the securities shall be such sum as would have been payable in respect of them to their owner if the company had been voluntarily wound up and all the assets realised on the date in relation to which the value is to be determined.
Where the assets of the company include securities of a second non-trading company, the value shall be ascertained on the basis that the second company is also voluntarily wound up and its assets realised on the relevant date, and if the assets of the second company include securities of a third non-trading company, the value shall be ascertained on the basis that the third company is also voluntarily wound up and its assets realised on the relevant date, and so on.
In determining such sum, no allowance shall be made for the costs of winding up any company or of realising its assets.
(6) Where any one or more of the deceased and relatives of the deceased had, directly or indirectly, control of a company by reason of the ownership of shares—
(a) in a case in which the deceased died two years or more after the passing of this Act, within the period of five years before the death,
(b) in any other case, within the period commencing three years before the passing of this Act and ending at the death,
the value of each such share passing or deemed to pass on the death of the deceased under his will or intestacy or by reason of a disposition made by him shall, for all purposes of death duties, be determined as if it formed part of a group of shares sufficient in number to give to the owner of the group control of the company.
(7) Where amongst the property passing on a death there is included a debt due to the deceased by a company controlled by the deceased, the value of the debt for all purposes of death duties shall be determined on the basis that the debt was immediately payable on the date in relation to which the value is to be ascertained.
(8) A disposition to or for the benefit of a relative of the deceased made by a company controlled by the deceased, where at the time of the disposition or at any time within a period of one year prior thereto the deceased alone had control of the company, shall, for all purposes of death duties, be deemed to be a disposition made by the deceased to or for the benefit of the relative, and any consideration for the disposition given to the company shall be deemed to be consideration given to the deceased in relation to the disposition so deemed to be made by him.
num: 21
paragraphs: —(1) In this section—
“beneficiary” means a person who is an object of the trust referred to in subsection (2) of this section;
“market value” means the price which, in the opinion of the Revenue Commissioners, the property to which subsection (5) of this section relates would fetch if sold in the open market;
“payment” includes any disposition of property in favour of a beneficiary;
“relevant period” means, in relation to a deceased person, the period of five years prior to the date of his death or the period from the date of the commencement of the discretionary trust up to the date of his death, whichever is the shorter.
(2) Where property is vested in a trustee upon trusts under which the income or capital of the property may be paid to one or more of a number or of a class of persons as the trustee or any other person may, at his discretion, select and one or more of those persons dies or die during the continuance of the discretionary trust and after the passing of this Act, any person so dying shall, for all purposes of estate duty, be deemed to have had an interest limited to cease on his death in the property.
(3) The interest to which subsection (2) of this section refers shall be deemed to have been an annuity equivalent to the average annual amount of the aggregate of all payments made out of the capital or income of the property to the deceased person or received or enjoyed by him during the relevant period or made to or received or disposed of by any other person on his behalf during that period, subject however to the following subsections of this section.
(4) A payment out of the capital of the trust property shall not be treated as a payment for the purpose of subsection (3) of this section save where there is a trust or power to accumulate income as an addition to the capital of the trust property and then only to the extent to which the payment does not exceed the amount of income accumulated to the date of such payment.
(5) If at any time during the relevant period the deceased person had been in occupation or possession of land or chattels subject to the discretionary trust otherwise than for full consideration in money or money's worth given by him and, after the termination of the occupation or possession, the land or chattels, or property representing the land or chattels, continues to be subject to the discretionary trust, the following provision shall have effect for the purpose of determining the amount of the annuity referred to in subsection (3) of this section:
For each year or part of a year during which the deceased person was the only beneficiary in occupation or possession, the occupation or possession shall be deemed to have been a payment of income at the annual rate of six per cent. of the market value of the land or chattels (as the case may be) at the date of the termination of the occupation or possession. For each year or part of a year during which a number of beneficiaries including the deceased person was in occupation or possession, the deceased person's occupation or possession shall be deemed to have been a payment of income at an annual rate of six (divided by the number of beneficiaries including the deceased person) per cent. of such market value.
(6) In relation to property in which an interest is by this section deemed to have subsisted, paragraph (b) of subsection (1) of section 2 of the Finance Act, 1894 , shall have effect as if the words “holder of an office, or” were omitted.
num: 22
paragraphs: —(1) In this section “the Principal Act” means the Finance Act, 1894 .
(2) The exemption from estate duty applicable by virtue of subsection (2) of section 2 of the Principal Act shall not apply to property other than land situate out of the State which, by the law of the country in which it is situate, is or is deemed to be immovable property and which passes or is deemed to pass on a death occurring after the passing of this Act where either—
(a) the death is that of a person dying domiciled in the State and the property passes under his will or intestacy or by survivorship or is deemed to pass by reference to being the subject matter of a gift inter vivos made, whether before or after the passing of this Act, by him, or
(b) the property passes or is deemed to pass under or by virtue of a disposition made, whether before or after the passing of this Act, by a person who, at the date when the disposition took effect, was domiciled in the State or in the area now comprised in the State or under a disposition made, whether before or after the passing of this Act, directly or indirectly, on behalf of or at the expense of or out of funds provided by a person who at the said date was domiciled as aforesaid.
(3) Paragraph (b) of subsection (2) of this section shall not apply in relation to the death of the disponer where—
(a) the disponer dies domiciled outside the State, and
(b) the disposition constitutes an immediate gift inter vivos made, whether before or after the passing of this Act, by him.
(4) As respects property to which subsection (2) of this section applies, the following provisions shall have effect:
(a) the proviso to subsection (5) of section 7 of the Principal Act and subsection (3) of section 60 of the Finance (1909-10) Act, 1910 , shall not apply;
(b) where the deceased was competent to dispose of such property within the meaning of the Principal Act, his executor (as defined by paragraph (d) of subsection (1) of section 22 of that Act) shall, in addition to any other person, be accountable for the duty and subsection (4) of section 8 of the Principal Act shall have effect as if the words referring to the executor not being accountable were omitted;
(c) the charge for duty thereon by virtue of subsection (1) of section 9 of the Principal Act shall extend to assets which form the proceeds of any disposition of the property or otherwise for the time being directly or indirectly represent it and the proviso to that subsection and any other enactment relating to the charge imposed under that section shall have effect accordingly.
num: 23
paragraphs: —(1) Where, after the passing of this Act, a person who has an interest in property limited to cease on a death as defined by section 27 of the Finance Act, 1941 , acquires the property or all or any other interests therein, the acquisition shall be deemed to be a determination of the interest so limited to cease as aforesaid, within the meaning of section 30 of that Act.
(2) Where an acquisition to which subsection (1) of this section relates has, by way of purchase within five years of the death whereon the interest was limited to cease, been made either by the deceased or out of or by means of any property which would have passed or have been deemed to pass on his death if he had died immediately before the said purchase, then, a sum of money equivalent to the consideration given for the purchase shall be deemed for all purposes of estate duty to be property taken under a disposition made by the deceased within five years of his death purporting to operate as a gift inter vivos to the person from whom the purchase was made.
(3) Where—
(a) at any time after the passing of this Act and within five years before a death, being a time when there was in any property an interest limited to cease on the death as defined in section 27 of the Finance Act, 1941 , a purchase of another interest in that property expectant on or subject to the interest so limited has been made either by the deceased or out of or by means of any property which would have passed for the purposes of estate duty on his death if he had died immediately before the purchase,
(b) the other interest passes or is deemed to pass or would, but for the provisions of this subsection, so pass or be deemed to pass on the death for the purposes of estate duty, and
(c) subsection (1) of this section does not apply to the purchase of the other interest,
there shall be deemed to be included in the property passing on the death in lieu of and substitution for the said other interest a sum of money equivalent to the consideration given for the purchase and the said other interest shall be excluded from the property so passing.
(4) Where the interest limited to cease on a death to which subsection (1) or paragraph (a) of subsection (3) of this section applies is such that on the cesser of that interest the property in which it subsisted is to be treated for the purposes of estate duty as passing to a particular or limited extent only then the consideration for the purchase to which subsection (2) of this section or the said paragraph (a), as the case may be, refers shall be treated for the purpose of this section as reduced to a corresponding extent.
(5) A sum of money which under this section is deemed to pass on a death shall, for the purposes of subsection (10) of section 7 of the Finance Act, 1894 , be treated as distinct from any other property passing or deemed to pass on the death.
(6) Any property or any interest therein which was the subject matter of an acquisition to which the foregoing subsections apply shall not, in relation to any other property passing or deemed to pass on the death, be regarded as consideration within the meaning of section 3 of the Finance Act, 1894 .
num: 24
paragraphs: —(1) (a) The provisions of this subsection shall have effect in relation to a death benefit payable under a non-contributory superannuation scheme.
(b) A death benefit shall be deemed—
(i) for all purposes of estate duty to be an interest purchased or provided by the deceased and to pass by reason of a disposition made by him,
(ii) for all purposes of succession duty to be a succession derived from the deceased as predecessor and from no other person.
(c) Where a death benefit is payable to all or any one or more of a class of persons, each such person shall be deemed to have become entitled on the death to all payments made to him notwithstanding that a power of appointment, selection or nomination in respect of the payments was vested in any person.
(d) (i) Where the aggregate value of all death benefits payable on a death does not exceed £5,000, the benefits shall, to the extent to which they become payable to or for the benefit of the widow or the dependent children of the deceased, be exempt from estate duty.
(ii) Where the aggregate value of death benefits payable on a death to or for the benefit of the widow or dependent children of the deceased exceeds £5,000, the estate duty chargeable in respect of such benefits shall not exceed the sum by which such value exceeds £5,000, but no reduction under this paragraph of the duty chargeable on a death benefit shall effect any reduction of the estate duty on other property under subsection (1) of section 13 of the Finance Act, 1914 , or paragraph (b) of subsection (2) or subsection (3) of section 13 of the Finance Act, 1955 .
(e) In a case in which a death benefit consists of property other than money, any references in this section to a benefit being payable or to payments shall be construed accordingly.
(f) In this subsection—
“death benefit” means any benefit which accrues pursuant to a superannuation scheme on or in connection with a death, occurring after the passing of this Act, during service or after retirement;
“the deceased” means the person on or in connection with whose death a death benefit accrues;
“dependent child” means a child (including a child adopted under the provisions of the Adoption Acts, 1952 and 1964) who had not attained the age of sixteen years at the date of the death of the deceased or who was then receiving full time instruction at any university college, school or other educational establishment;
“non-contributory”, in relation to a superannuation scheme, means that no monetary contribution has been made to the scheme by the deceased;
“superannuation scheme” includes any arrangement connected with employment;
“employment” includes employment as a director of a body corporate.
(2) (a) The provisions of paragraph (d) of subsection (1) of this section shall apply to death benefits payable under a superannuation scheme other than a non-contributory superannuation scheme, to or for the benefit of the widow or dependent children of the deceased.
(b) In this subsection “death benefits”, “superannuation scheme”, “non-contributory”, “dependent children” and “the deceased” have the same meanings as in subsection (1) of this section.
num: 25
paragraphs: —(1) The proviso to section 4 of the Finance Act, 1894 , shall cease to have effect as regards property which passes or is deemed to pass on a death occurring after the passing of this Act.
(2) Subsection (1) of this section shall not apply to property as to which it is proved to the satisfaction of the Revenue Commissioners that it did not pass and is not deemed, by this or any other Act, to pass under or as a consequence, direct or indirect, of a disposition made by the deceased.
(3) For the purposes of this section “disposition” includes a payment of money.
num: 26
paragraphs: —In relation to a policy of assurance to which subsection (1) of section 11 of the Customs and Inland Revenue Act, 1889 , applies and which was indefeasibly vested in a donee before the commencement of the period (in this section referred to as the revelant period) of five years ending at the death of the assured, the following provisions shall have effect if the assured dies after the passing of this Act:
(a) a part of the money received under the policy shall be excluded from the property passing or deemed to pass on the death of the assured and that part shall consist of:
(i) so much of that money as is equal to the price which, in the opinion of the Revenue Commissioners, the policy would have fetched if sold in the open market on the commencement of the relevant period, and
(ii) if any of the premiums paid on the policy during the relevant period were premiums not paid by the assured, so much of the balance of that money as bears to the whole of that balance the same proportion as the total of those premiums bears to the total of all the premiums paid on the policy during the relevant period;
(b) such part of the money received under the policy as remains after the exclusion under the foregoing paragraph shall be treated for all purposes of estate duty as made up of or including the gifts deemed under the next paragraph to have been made by the assured to the donee,
(c) the assured shall be deemed to have made, on each date during the relevant period on which he paid a premium on the policy, a gift to the donee of so much of the part referred to in the foregoing paragraph of the money received under the policy as bears to the whole of that part the same proportion as the premium bears to the total of all the premiums paid by the assured on the policy during the relevant period.
num: 27
paragraphs: —(1) In subsection (1) of section 59 of the Finance (1909-10) Act, 1910 , “five years” is hereby substituted for “three years” in both places where the latter words occur.
(2) In subsection (2) of section 59 of the Finance (1909-10) Act, 1910 “five hundred pounds” is hereby substituted for “one hundred pounds”.
(3) In—
(i) paragraph (e) of subsection (1) of section 2 of the Finance Act, 1894 ,
(ii) paragraph (b) of subsection (3) of section 24 of the Finance Act, 1940 ,
(iii) subsection (4) of section 25 of that Act,
(iv) subsection (2) of section 30 of the Finance Act, 1941 ,
(v) subsection (1) of section 24 of the Finance Act, 1961 , and
(vi) paragraph (b) of subsection (3) of that section, “five years” is hereby substituted for “three years”.
(4) In determining, for estate duty purposes, the value of any property which is deemed to pass on a death—
(a) as property taken under a disposition purporting to operate as an immediate gift inter vivos within the meaning of paragraph (c) or paragraph (e) of subsection (1) of section 2 of the Finance Act, 1894 , or
(b) under the provisions of subsection (1) of section 30 of the Finance Act, 1941 ,
being a death taking place in the third, fourth or last year of the five-year period, the principal value of the property shall be reduced—
(i) by fifteen per cent. thereof, if the death takes place in the third year,
(ii) by thirty per cent., if the death takes place in the fourth year,
(iii) by sixty per cent., if the death takes place in the fifth year.
In this subsection “the five-year period” means the period of five years beginning with the relevant disposition of property or the relevant disposition or determination of the limited interest, as the case may be.
(5) Where, for estate duty purposes, the aggregate value or amount of gifts made to a donee within five years prior to the death of the donor exceeds £500, the estate duty chargeable in respect of the gifts shall not exceed the sum by which such value or amount exceeds £500, but no reduction under this subsection of the duty chargeable on a gift shall affect any reduction of the estate duty on other property under subsection (1) of section 13 of the Finance Act, 1914 , or paragraph (b) of subsection (2) or subsection (3) of section 13 of the Finance Act, 1955 .
(6) This section shall have effect only in cases in which the deceased dies after the passing of this Act and the relevant disposition, surrender, assurance, divesting, determination or other transaction was made or effected after or within three years before such passing.
num: 28
paragraphs: —In relation to a disposition or gift made, whether before or after the passing of this Act, by a person dying after such passing—
(i) subsection (2) of section 59 of the Finance (1909-10) Act, 1910 ,
(ii) paragraph (a) of section 27 of the Finance Act, 1938 , and
(iii) paragraph (c) of subsection (3) of section 24 of the Finance Act, 1961 ,
shall be read as if there were inserted in each immediately after the word “marriage” the words “to or for the benefit of a party to the marriage or of issue of the marriage”.
num: 29
paragraphs: —(1) In this section—
“benefit” means all property and all interests in property passing or accruing to a dependant on the death of the deceased in respect of which estate duty is payable;
“child” means a child (including a child adopted under the provisions of the Adoption Acts, 1952 and 1964) of the deceased who was living at his death and who had not then attained the age of sixteen years or who was then receiving full time instruction at any university college, school or other educational establishment;
“deceased” means a person dying after the passing of this Act domiciled in the State;
“dependant” means the widow or child;
“widow” except in subsection (4), means the widow of the deceased,
(2) Where the widow is the only dependant entitled to a benefit on the death of the deceased, any estate duty payable in respect of such benefit shall be abated by the sum of £250 together with a sum of £150 in respect of each child.
(3) Where more than one dependant, including the widow, are entitled to benefits, any estate duty payable in respect of such benefits shall be abated by the following amounts:
(a) in relation to the widow's benefit, by a sum of £250 together with a sum of £150 for each child not entitled to a benefit;
(b) in relation to a child's benefit, by the sum of £150.
(4) In a case where the deceased is a widow, any estate duty payable in respect of a benefit shall be abated by the sum of £150.
(5) Subsections (2) to (4) of this section shall have effect subject to the proviso that—
(a) in a case in which the amount of a benefit is not affected by a liability to estate duty arising in connection with the death of the deceased, no abatement shall be made under those subsections in respect of that benefit;
(b) in a case in which the amount of a benefit is affected by such a liability and the extent to which it is so affected is of an amount which is less than such abatement under those subsections in respect of the benefit as would be appropriate apart from this paragraph, the abatement under those subsections in respect of the benefit shall be reduced to that amount.
(6) Subsections (2) to (5) of this section shall have effect subject to the proviso that they shall not apply where the net value of all property passing or deemed to pass on the death of the deceased in respect of which estate duty is payable exceeds £15,000.
num: 30
paragraphs: —(1) The legacy and succession duty payable at the rate of one per cent. and the additional succession duty at the rate of ten shillings per cent. shall not be chargeable on a legacy derived from a testator or intestate dying after the passing of this Act or on a succession conferred after such passing.
(2) For the purposes of this section “legacy” includes residue and share of residue.
(3) The foregoing provisions of this section shall not operate to prevent the grant of an exemption which would be lawful if this section had not been enacted.
num: 31
paragraphs: —(1) Where it is shown to the satisfaction of the Revenue Commissioners that there exists a scheme for the bona fide reconstruction of any company or companies or the amalgamation of any companies and that, in connection with the scheme, there exist the following conditions, that is to say—
(a) a company with limited liability is to be registered, or since the passing of this Act a company has been established by Act of the Oireachtas, or the nominal share capital of a company has been increased;
(b) the company (in this section referred to as the transferee company) is to be registered or has been established or has increased its capital with a view to the acquisition either of the undertaking of, or of not less than ninety per cent. of the issued share capital of, a particular existing company;
(c) the consideration for the acquisition (except such part thereof as consists in the transfer to or discharge by the transferee company of liabilities of the existing company) consists as to not less than ninety per cent. thereof—
(i) where an undertaking is to be acquired, in the issue of shares in the transferee company to the existing company or to holders of shares in the existing company; or
(ii) where shares are to be acquired, in the issue of shares in the transferee company to the holders of shares in the existing company in exchange for the shares held by them in the existing company;
then, subject to the provisions of this section,—
(A) the nominal share capital of the transferee company, or the amount by which the capital of the transferee company has been increased, as the case may be, shall, for the purpose of computing the stamp duty chargeable in respect of that capital, be treated as being reduced by either—
(I) an amount equal to the amount of the share capital of the existing company or, in the case of the acquisition of a part of an undertaking, equal to such proportion of the said share capital as the value of that part of the undertaking bears to the whole value of the undertaking; or
(II) the amount to be credited as paid up on the shares to be issued as such consideration as aforesaid and on the shares, if any, to be issued to creditors of the existing company in consideration of the release of debts (whether secured or unsecured) due or accruing due to them from the existing company or of the assignment of such debts to the transferee company,
whichever amount is the less; and
num: 32
paragraphs: —The exemptions from corporation profits tax specified in subsection (1) of section 33 of the Finance Act, 1929 , shall be given in respect of the period beginning on the 1st day of January, 1965, and ending on the 31st day of December, 1967.
num: 33
paragraphs: —(1) In this section “the Act” means the Finance (Miscellaneous Provisions) Act, 1956 .
(2) In subparagraph (b) of the definition of “accounting period” substituted in subsection (2) of section 28 of the Finance Act, 1960 , “the 6th day of April, 1970” shall be substituted for “the 6th day of April, 1965”.
(3) Where, apart from the provisions of this section, a company is entitled to claim relief under Part III of the Act, by virtue of subsection (2) of section 29 of the Finance Act, 1960 , in respect of any accounting period or part of an accounting period ending before the 6th day of April, 1975, the company may, in lieu of such relief, claim relief under subsection (1) or subsection (3) of section 13 of the Act as if that accounting period or part of an accounting period were an accounting period within the meaning of section 10 of the Act.
(4) Where a company has obtained relief under Part III of the Act by virtue of subsection (3) of this section and is subsequently entitled to relief under subsection (2) of section 29 of the Finance Act, 1960 , the last-mentioned relief shall be granted as if any accounting period or part of an accounting period in respect of which relief has been given by virtue of subsection (3) of this section was within the period comprising the company's accounting periods within the meaning of section 10 of the Act:
Provided that no relief shall be given in respect of any accounting period or part of an accounting period beginning later than fifteen years after the day as from which the company first was entitled to claim relief under Part III of the Act or in respect of any accounting period or part of an accounting period beginning after the 5th day of April, 1980.
num: 34
paragraphs: — Section 14 of the Finance Act, 1944 , shall not apply or have effect in relation to any accounting period ending after the 31st day of December, 1964.
num: 35
paragraphs: —(1) Where under any of the provisions of section 86 , 86A or 86B of the Finance Act, 1963 , any amount falls to be treated for the purposes of income tax as income of a company, the amount shall be treated for the purposes of corporation profits tax as if it had been received by the company, on the date by reference to which it falls to be treated as income for the purposes of income tax, as profits or gains arising from lands, tenements or hereditaments forming part of the assets of the company.
(2) Subsection (1) of this section shall have effect in respect of any accounting period ending on or after the 1st day of January, 1965.
num: 36
paragraphs: —The following subsection is hereby, with effect as on and from the 12th day of May, 1965, substituted for subsection (4) of section 47 of the Finance Act, 1963 :
“(4) Where goods are supplied or services are provided by a club or other body of persons in respect of a payment of money by any of its members, then, for the purposes of this Part of this Act,—
(a) in the case of supply of goods, the supply shall be treated as being a sale of the goods in the course of business, the money as being money received in respect of the sale and the club or other body of persons as being the seller, and
(b) in the case of provision of services, the provision shall be treated as being in the course of business.”
num: 37
paragraphs: —(1) The following subsection is hereby, with effect as on and from the 12th day of May, 1965, inserted in section 48 of the Finance Act, 1963 , after subsection (1):
“(1A) Where in any of the cases mentioned in subsection (1) of this section, the right to receive the whole or any part of the moneys payable in respect of the relevant activity is or becomes vested in a person other than the person specified in that subsection as the accountable person, the person in whom such right is or becomes vested shall be accountable for and liable to pay tax on such moneys as he may receive in respect of the activity.”
(2) In paragraph (c) and in paragraph (f) of subsection (3) of section 48 of the Finance Act, 1963 , “£150” is hereby substituted for “£100”.
(3) The following paragraph is hereby inserted in subsection (3) of section 48 of the Finance Act, 1963 , after paragraph (f):
“(g) Where a farmer or fisherman sells his own produce or any part thereof by retail, otherwise than in connection with the carrying on of the business of a shop or similar retail business, tax shall not be chargeable and he shall not be accountable for tax in respect of such retail sales unless or until the moneys received by him in respect thereof exceed £150 in each of two successive months and he shall then become accountable for tax immediately on the expiration of the second month; but in the meantime those moneys shall be disregarded for the purposes of paragraph (c) of this subsection.”
(4) The amendments specified in subsections (2) and (3) of this section shall come into operation—
(a) if this Act is passed before or in July, 1965—on the 1st day of August, 1965, and
(b) if it is passed in or after August, 1965—on the 1st day of the month next following that in which it is passed.
num: 38
paragraphs: —(1) In the second paragraph of the First Schedule to the Finance Act, 1963 , “other than retail sales” is hereby substituted for “otherwise than in connection with the carrying on of the business of a shop or similar retail business”.
(2) The amendment specified in subsection (1) of this section shall come into operation—
(a) if this Act is passed before or in July, 1965—on the 1st day of August, 1965, and
(b) if it is passed in or after August, 1965—on the 1st day of the month next following that in which it is passed.
num: 39
paragraphs: —(1) Where—
(a) it appears to the Revenue Commissioners (whether upon disclosure to them of information which in accordance with the relevant regulations has been furnished to them for the ascertainment of liability to tax of the person concerned or otherwise) that, in computing the taxable turnover of an accountable person in respect of any month, a deduction of moneys has been made on the basis that the activity in relation to which the moneys were received is an exempted activity within the meaning of subsection (2) of section 48 of the Finance Act, 1963 , and
(b) the Revenue Commissioners are of opinion that that activity is not such an exempted activity,
the Revenue Commissioners may, at their discretion and without prejudice to any other action which may be taken, serve notice on the person specifying—
(i) the deduction which in their opinion should not have been made in computing taxable turnover for the month in question, and
(ii) the additional tax which would be payable if that deduction had not been made.
(2) Where a notice is served on an accountable person under subsection (1) of this section—
(a) the person may, if he claims that the deduction specified in the notice relates to an exempted activity within the meaning of subsection (2) of section 48 of the Finance Act, 1963 , by notice in writing given to the Revenue Commissioners within the period of fourteen days from the service of the notice, require the claim to be referred for decision to the Special Commissioners of Income Tax,
(b) on the expiration of the said period, if no such claim is required to be so referred, or, if such claim is required to be so referred, on determination by the Special Commissioners of Income Tax against the claim, the additional tax specified in the notice shall be recoverable in the same manner and by the like proceedings as if the person had sent, in accordance with the relevant regulations, particulars showing such tax as due by him.
(3) A notice served under subsection (1) of this section may relate to two or more months and to two or more deductions in any month.
num: 40
paragraphs: —(1) The following provisions shall have effect in relation to claims required to be referred to the Special Commissioners of Income Tax under paragraph (a) of subsection (2) of section 54 of the Finance Act, 1963 , or under paragraph (a) of subsection (2) of section 39 of this Act:
(a) the Special Commissioners of Income Tax shall from time to time appoint times and places for the hearing of claims and the Clerk to the Special Commissioners shall give notice of those times and places to the Revenue Commissioners;
(b) the Revenue Commissioners shall give notice in writing to each person (other than a person whose claim has been treated as determined in accordance with subsection (2) of this section) who has given notice of claim of the time and place appointed for the hearing of his claim;
(c) a claim may be heard and determined by one Special Commissioner;
(d) in the case of the neglect or refusal of a person who has given notice of claim to attend before the Special Commissioners at the time and place appointed for the purpose of hearing claims, the claim shall be treated as if the Special Commissioners of Income Tax had determined against it at the time so appointed;
(e) if it is shown by application in writing to the satisfaction of the Special Commissioners of Income Tax that, owing to absence, sickness or other reasonable cause, any person has been prevented from giving notice of claim in due time or from attending at the hearing of the claim on the day fixed for that purpose, they may extend the time for giving notice of claim or postpone the hearing of his claim for such reasonable time as they think necessary or may admit the claim to be made by any agent authorised on his behalf;
(f) an inspector of taxes or such other officer as the Revenue Commissioners shall appoint in that behalf may attend every hearing of claim and shall be entitled—
(i) to be present during all the time of the hearing and at the determination of the claim,
(ii) to produce any lawful evidence against the claim, and
(iii) to give reasons against the claim;
(g) the Special Commissioners of Income Tax shall permit any barrister or solicitor to plead before them on behalf of the claimant or the Revenue Commissioners, either viva voce or in writing, and shall hear any accountant, being any person who has been admitted a member of an incorporated society of accountants;
(h) if it appears to the Special Commissioners of Income Tax by whom the claim is heard, or to a majority of such Commissioners, by examination of the claimant on oath or affirmation, or by other lawful evidence that the claim is justified, they shall determine in favour of the claim but otherwise they shall determine against the claim;
(i) where the Special Commissioners of Income Tax have entertained a claim and, after hearing argument on the claim, have postponed giving their determination either for the purpose of considering the argument or for the purpose of affording to the claimant an opportunity of submitting in writing further evidence or argument, the Special Commissioners may, unless they consider a further hearing to be necessary, cause their determination to be sent by post to the claimant and to the Revenue Commissioners;
(j) where the Special Commissioners have determined a claim, their determination shall be final and conclusive, save that 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, with the necessary modifications, apply in the same manner as in the case of an appeal against an assessment to income tax.
(2) If a person has made a claim under paragraph (a) of subsection (2) of section 39 of this Act and, at any time before the time fixed for hearing his claim by the Special Commissioners of Income Tax, he, or a person acting on his behalf in relation to the claim, notifies the Revenue Commissioners in writing that he desires not to proceed with his claim, the claim shall be treated as if the Special Commissioners of Income Tax had determined against it on the date upon which he so notifies the Revenue Commissioners.
num: 41
paragraphs: —(1) In this Part of this Act, except where the context otherwise requires—
“control”, in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership;
“development” means, in relation to any land, the construction, demolition, extension, alteration or reconstruction of any building on the land or the carrying out of any engineering or other operation in, on, over or under the land to adapt it for materially altered use; and “develop”, “developing” and “developed” shall be construed correspondingly;
“land” includes any interest in land;
“market value” means, in relation to any property, the price which that property might reasonably be expected to fetch if sold in the open market;
num: 42
paragraphs: —(1) Without prejudice to any other provision of the Income Tax Acts under which tax is to be charged under Schedule D, tax under that Schedule shall, subject to and in accordance with the provisions of this and the succeeding sections of this Part of this Act, be charged in respect of all profits or gains arising or accruing from any business of dealing in or developing land.
(2) Without prejudice to the generality of the expression “dealing in or developing land”, a business of dealing in or developing land shall be deemed to be carried on where a person having an interest in any land—
(a) disposes of that interest, or of an interest which derives therefrom, after he or a person connected with him has developed the land or secured its development or has entered into any obligation to develop the land or to secure its development,
(b) disposes of that interest, or of an interest which derives therefrom, and the person to whom the disposition is made or a person connected with that person has at or before the time of the disposition entered into a contract (other than a contract with respect to which the Revenue Commissioners, or on appeal the Special Commissioners, are satisfied that the disponor had no knowledge of its existence and that he had no reason for thinking that it existed) for the development of the land, or the disposition is subject to any condition or stipulation as to the development of the land or is made in pursuance of any arrangement for the development of the land,
(c) disposes of an interest which derives from that interest in such circumstances that, apart from this section, the consideration for the disposal would have fallen to be taken into account as a trading receipt of a trade carried on by him if it had been the consideration for the disposal of the full interest acquired by him, or
(d) grants to any person for valuable consideration, other than a payment to which section 88 of the Finance Act, 1963 , applies, any right in relation to the development of the land.
Every reference in this subsection to disposing of an interest in, or to the development of, any land includes a reference to disposing of an interest in, or to the development of, any part of that land.
(3) Where a person having acquired an interest in any land disposes of the whole of that interest after he has constructed, reconstructed extended or altered any building on the land, his activities in relation to the land shall, notwithstanding anything in paragraph (a) of subsection (2) of this section, be deemed not to have been carried out in the course of a business of dealing in or developing land where—
(a) the person would, if the said activities were disregarded, not fall to be treated as having carried on, at any time within three years prior to the said disposal, a business of dealing in or developing land, and
(b) either—
(i) in a case in which the building was constructed or reconstructed, the period from the time when the construction or reconstruction was completed to the time when the interest was disposed of was not less than six years and for the whole of that period the person was the sole occupier of the building, or
(ii) the person being an individual, the Revenue Commissioners, or on appeal the Special Commissioners, are satisfied that the building was constructed, reconstructed, extended or altered for exclusive occupation by him as his only or main residence and was in fact so occupied for substantially the whole of the period from the time when the construction, reconstruction, extension or alteration was completed to the time when the interest was disposed of, or
(iii) the Revenue Commissioners, or on appeal the Special Commissioners, are satisfied that the building was constructed or reconstructed for exclusive occupation by the person as a farmhouse or farm building for the purpose of farming the land and was in fact so occupied for substantially the whole of the period from the time when the construction or reconstruction was completed to the time when the interest was disposed of, or
(iv) in a case in which the building was reconstructed, extended or altered, for a period of not less than six years prior to the time when the reconstruction, extension or alteration was completed no part of the building was occupied otherwise than by the person or a parent or child of the person,
and, for the purposes of subparagraph (ii) of paragraph (b) of this subsection, a building shall be deemed to be in the exclusive occupation of an individual as his residence where it is mainly occupied by him or by a parent or child of his as a residence and no part thereof is occupied for the purposes of a trade but a part thereof is occupied for the purposes of a profession or vocation.
num: 43
paragraphs: —(1) Where a business of dealing in or developing land is, or is to be regarded as, a trade within Schedule D or a part of such a trade, the rules and provisions applicable to Case I of that Schedule shall, as respects the computation of the profits or gains of the business, have effect subject to the provisions of subsection (2) of this section.
(2) (a) Any consideration, other than rent or an amount treated as rent under section 86 of the Finance Act, 1963 , for the disposal of an interest in any land, or in a part of any land, shall be treated as a consideration for the disposal of trading stock and shall accordingly be taken into account as a trading receipt.
(b) Any interest (hereafter in this subsection referred to as the superior interest) in any land held by the trader which has become trading stock of the trade shall thereafter continue at all times to be such trading stock and the value thereof at any time shall be taken to be an amount equal to the cost to the trader of its acquisition diminished by an amount equal to the cost to the trader of creating any interest (hereafter in this subsection referred to as an inferior interest) to which the superior interest has become subject.
(c) For the purposes of paragraph (b) of this subsection the cost of the acquisition of the superior interest shall, subject to paragraphs (e) and (f) of this subsection, be taken to be the aggregate of the following amounts, that is to say:
(i) where the interest is a leasehold interest, the amount of any fine, premium or other like sum paid by the trader in consideration for the grant of the lease, or, if he has obtained the lease by assignment, the amount paid by him in consideration of the assignment;
(ii) where the interest is a leasehold interest, an amount equal to the market value at the time of the acquisition of any rent reserved under the lease;
(iii) where the interest is not a leasehold interest, the amount paid by the trader for the acquisition of the interest together with an amount equal to the market value at the time of the acquisition of any fee farm rent, rentcharge, annuity or other annual payment reserved or charged upon the land;
(iv) the amount paid by the trader by way of legal and other expenses incidental to the acquisition of the interest;
(v) where the trader has developed the land, the amount of the expenditure incurred by him on the development;
but where the trader has more than one interest in the land, no amount shall be taken into account under subparagraph (v) of this paragraph except in relation to that interest to which the other or all the others are subject.
(d) For the purposes of paragraph (b) of this subsection the cost to the trader of creating an inferior interest shall be taken to be—
(i) where the inferior interest is an interest in the whole of the land to which the superior interest extends, the amount by which the cost to the trader, computed in accordance with paragraph (c) of this subsection, of the acquisition of the superior interest exceeds the market value of any interest retained by him, or
(ii) where the inferior interest is an interest in a part of the land to which the superior interest extends, the amount by which the portion of the cost of acquisition of the superior interest which is attributable to that part exceeds the market value of any interest in that part retained by him.
For the purposes of subparagraph (ii) of this paragraph the portion of the cost of acquisition of the superior interest which is attributable to a part of the land to which that interest extends shall be arrived at by apportioning in such manner as is just each of the several amounts which, under paragraph (c) of this subsection, are taken as making up the said cost of acquisition.
(e) Where the trader has acquired the superior interest in any land otherwise than for consideration in money or money's worth and, in particular, where he has acquired the interest under a will or an intestacy or by way of gift, he shall be deemed, for the purposes of paragraph (c) of this subsection, to have acquired the interest for a consideration equal to its market value at the time of acquisition.
(f) The cost of acquisition of the superior interest shall be computed in accordance with the foregoing provisions of this subsection notwithstanding that at the time of acquisition the trade had not been commenced or the interest was not then appropriated as trading stock; but, where the period between the time of acquisition and the time of appropriation exceeds five years, the trader shall be deemed, for the purposes of the said provisions, to have purchased the interest five years before the time of appropriation for a consideration equal to its market value at that time.
For the purposes of this paragraph, without prejudice to the occurrence otherwise of an appropriation of an interest in land as trading stock, there shall be such an appropriation on the occurrence of any of the following:
(i) any interest in the land, or in any part of it, is disposed of,
(ii) the trader holds himself out as being prepared to dispose of any interest in the land or in any part of it,
(iii) the land or any part of it commences to be developed, or
(iv) the trader or a person connected with him enters into any arrangement to develop, or to secure the development of, the land or any part of it.
num: 44
paragraphs: —In the case of a business of dealing in or developing land the profits or gains of which are chargeable to tax under Case VI of Schedule D, the profits or gains arising in any year of assessment on the disposal of any interest in land shall be computed as they would, under section 43 of this Act, have fallen to be computed for the purposes of Case I of Schedule D if the business were a trade:
Provided that where—
(a) the profits or gains in respect of which a person is, under the foregoing provisions of this Part of this Act, chargeable to tax under the said Case VI for any year of assessment are wholly profits or gains arising on a single transaction involving the disposal of an interest in land, and
(b) if that transaction were disregarded, the person would not fall to be treated as having carried on, at any time within three years prior to the transaction, a business of dealing in or developing land,
so much of those profits or gains as does not exceed one thousand five hundred pounds shall be disregarded.
num: 45
paragraphs: —(1) For the purposes of an assessment for any year beginning on the 6th day of April, 1965, or on any succeeding 6th day of April, where an interest in land is disposed of by any person and—
(a) the person to whom the disposition is made (hereafter referred to as the transferee) is a body of persons over whom the disponor has control or the disponor is a body of persons over whom the transferee has control or both the disponor and the transferee are bodies of persons and some other person has control over both of them;
(b) the interest is disposed of at a price greater than, its market value; and
(c) the price—
(i) does not fall to be taken into account, in relation to the disponor, in computing for tax purposes the profits or gains of a business of dealing in or developing land or of a trade which consists of or includes such a business, but
(ii) does fall to be so taken into account in relation to the transferee,
the transferee shall for tax purposes be deemed to have acquired the interest at a price equal to the market value thereof at the time of its acquisition by him.
(2) For the purposes of an assessment for any year beginning on the 6th day of April, 1965, or on any succeeding 6th day of April, where an interest in land is disposed of by any person and—
(a) the person to whom the disposition is made (hereafter referred to as the transferee) is a body of persons over whom the disponor has control or the disponor is a body of persons over whom the transferee has control or both the disponor and the transferee are bodies of persons and some other person has control over both of them;
(b) the interest is disposed of at a price less than its market value, and
(c) the price—
(i) does not fall to be taken into account, in relation to the transferee, in computing for tax purposes the profits or gains of a business of dealing in or developing land or of a trade which consists of or includes such a business, but
(ii) does fall to be so taken into account in relation to the disponor,
the disponor shall for tax purposes be deemed to have disposed of the interest at a price equal to the market value thereof at the time of its disposal by him.
(3) In this section “body of persons” includes a partnership.
num: 46
paragraphs: —(1) Where the activities of a company consist of or include the construction or the securing of the construction of a building and after the construction has begun and not later than six years after its completion shares in the company are sold to a person who has, or in consequence of the sale will have, control of the company, and apart from this section the consideration for the sale would not be a receipt of an income nature in the hands of the seller, the consideration shall, if the conditions specified in subsection (2) of this section are satisfied, be deemed to be income of the seller up to the amount specified in subsection (5) of this section, and shall be chargeable under Case VI of Schedule D accordingly.
(2) The conditions referred to in subsection (1) of this section are that—
(a) the shares are sold on or after the 11th day of May, 1965;
(b) at the time of the sale the company has (directly or indirectly) an interest in the building and the value of that interest and any interest which the company so has at that time in any other building (not being a building completed more than six years before that time nor one in relation to which the condition specified in paragraph (c) of this subsection is not satisfied) the erection of which was carried out or secured by the company, amounts to one-fifth or more of the net assets of the company;
(c) on a notice for the purpose having been served on it by the inspector of taxes, the company has not shown, within twenty-one days after the date of the notice or within such further time as the Revenue Commissioners may have allowed, that the said interest is trading stock of a trade carried on by it and has been or will be disposed of by it in the normal course of that trade.
(3) Subsection (1) of this section shall not apply if—
(a) the shares in the company are sold by a person or persons to another company and the shares in each company are held (directly or indirectly) by the same person or by the same persons in the same proportion, or
(b) the shares are sold by one company to another company and the shares in each company are held (directly or indirectly) by the same person or by the same persons in the same proportion,
regard being had in each case to any differences in the nature of the shares or the rights attaching thereto.
(4) Where before the sale of shares mentioned in subsection (1) of this section the company—
(a) has disposed of its interest in the building, or of an interest which derives therefrom, to the person who is the purchaser of the shares, or to a company connected with the purchaser, or
(b) has disposed of any interest in the building to or in favour of any person, and the purchaser of the shares, or a company connected with the purchaser, acquires the interest, either before the sale or after the sale in pursuance of arrangements made not later than the sale,
subsection (1) of this section shall apply as if the interest disposed of were still vested in the first-mentioned company at the time of the sale of the shares, and as if any assets of the company representing the consideration for the disposal of the interest were not assets of the company.
(5) The amount which under subsection (1) of this section is to be deemed to be income of the seller is the appropriate proportion of the amount (if any) of the profits or gains of the company chargeable to tax which would have arisen if the interest referred to in paragraphs (b) and (c) of subsection (2) of this section (or all such interests where there are more than one) had been trading stock of a trade carried on by the company and that interest or those interests had been sold at that time for a consideration equal to the following amount, that is to say, the amount of the proper consideration for all the issued shares in the company—
(a) reduced by any excess of the market value of the assets of the company other than the said interest or interests over the aggregate liabilities of the company at the time of the sale, or
(b) increased by any excess of the said aggregate liabilities over the said market value :
Provided that, for the purposes of this and the next succeeding subsection, the market value of the goodwill of the company's business shall not be taken to be an amount exceeding three times the average for one year of the company's income (as computed for income tax purposes) for the three years immediately preceding the time of the sale of the shares or, where the company has been in existence for a period of less than three years, for such lesser period.
(6) For the purposes of this section the proper consideration for all the issued shares in a company shall be the actual consideration for the sale of shares mentioned in subsection (1) of this section increased (unless that sale was of all the issued shares) in the proportion which the total number of issued shares bears to the number of shares sold:
Provided that where the issued shares of the company are not all of the same nature or do not all have the same rights attaching thereto and the said sale was not of all the issued shares, the proper consideration for all the issued shares in the company shall, for the purposes of this section, be taken to be the market value at the time of the sale of the shares of the interest or all the interests mentioned in subsection (5) of this section reduced or, as the case may require, increased by the excess mentioned in paragraph (a) or paragraph (b) of subsection (5) of this section.
(7) For the purposes of subsection (5) of this section the appropriate proportion, in relation to any sale of shares, is the proportion which the actual consideration for that sale bears to the proper consideration for all issued shares in the company, so however that where the proviso to the foregoing subsection has effect the appropriate proportion is such proportion as may be just having regard to the number and nature of the shares sold and the rights attaching thereto, as compared with the number and nature of all the issued shares in the company and the rights or different rights attaching thereto.
(8) Any tax chargeable on the seller by virtue of the foregoing provisions of this section and not paid by him shall be recoverable from the company, and where the seller is an individual the amount which (by virtue of subsection (1) of this section) is deemed to be income of his shall be deemed for the purposes of this subsection to be the highest part of his income.
num: 47
paragraphs: —(1) Subject to the provisions of this section, where—
(a) a company (hereafter in this section referred to as the first company) is such that section 46 of this Act would apply if shares in the company were sold to a person who has, or in consequence of the sale would have, control of the company;
(b) shares in that company belong (either directly or through a nominee) to another company (hereafter in this section referred to as the second company);
(c) shares in the second company are at any time (hereafter in this section referred to as the relevant time) sold to a person who has, or in consequence of the sale will have, control of the first company; and
(d) all the issued shares in the second company at the relevant time are of the same nature and carry the same rights,
the appropriate number of shares in the first company shall be treated for the purposes of the said section 46 as having been sold at the relevant time to the person mentioned in paragraph (c) of this subsection by the seller of the shares mentioned in that paragraph for a consideration equal to the amount specified in subsection (3) of this section.
(2) For the purposes of the foregoing subsection, the appropriate number of shares in the first company is the number arrived at by multiplying the total number of shares in the first company which at the relevant time belonged (as aforesaid) to the second company by the fraction of which the numerator is the number of shares in the second company sold as mentioned in paragraph (c) of that subsection and the denominator is the total number of the issued shares in the second company at the relevant time.
(3) The amount referred to in subsection (1) of this section is the amount of the consideration for the sale mentioned in paragraph (c) of subsection (1) of this section—
(a) reduced by the amount arrived at by multiplying by the fraction specified in the foregoing subsection any excess of the value specified in the following subsection over the aggregate liabilities of the second company at the relevant time, or
(b) increased by the amount arrived at by multiplying by the said fraction any excess of the said aggregate liabilities over the said value.
(4) The value referred to in the foregoing subsection is the market value at the relevant time of all the assets of the second company other than the shares in the first company belonging (as aforesaid) to it at that time.
(5) Where, in the circumstances described in paragraphs (a) to (c) of subsection (1) of this section, all the issued shares in the second company at the relevant time are not of the same nature or do not carry the same rights, the foregoing provisions of this section shall have effect as if paragraph (d) of subsection (1) were omitted and for the fraction specified in subsection (2) there were substituted such fraction as may be just having regard to the number and nature of the shares in the second company which were sold as mentioned in the said paragraph (c) and the rights attaching thereto, as compared with the number and nature of all the issued shares in the second company at the relevant time and the rights or different rights attaching thereto, any reference to the first-mentioned fraction being construed accordingly.
(6) Where, in the circumstances described in paragraphs (a) to (c) of subsection (1) of this section—
(a) the second company is itself such a company as is mentioned in the said paragraph (a), and
(b) the person to whom the shares in the second company are sold has, or in consequence of the sale will have, control of the second company,
the provisions of section 46 of this Act, and the foregoing provisions of this section, shall all apply.
(7) Where, instead of shares in the second company being sold as mentioned in paragraph (c) of subsection (1) of this section, the sale is of shares in a company (hereafter in this subsection referred to as the last company) which, through a series of companies, has an indirect interest in the shares of the first company, the foregoing provisions of this section shall apply with such modifications as may be necessary in relation to each company (being either the first company, the last company, or one of the series of companies) of which the person to whom the shares in the last company are sold either has control at the time of the sale or will have control in consequence of it.
num: 48
paragraphs: —(1) Where sales of associated parcels of shares in a company, being sales to the same person, take place at different times, and in consequence of any of the sales other than the first that person obtains control of the company, then, for the purposes of either of the two foregoing sections any sales earlier than that in consequence of which he obtains control (not being sales effected before the 11th day of May, 1965) shall be treated as having all taken place at the time of that sale.
(2) For the purposes of the foregoing subsection parcels of shares shall be treated as associated if (either directly or through a nominee) they belong respectively to the same person or two or more persons with one of whom the other or each of the others is connected; and for the purposes of this subsection shares shall be treated as belonging to a person—
(a) if they belong to a company under his control, or
(b) if they are held by trustees in consequence of a settlement (as defined in subsection (3) of section 41 of this Act) in relation to which he is the settlor (as so defined).
(3) Where a person acquires control of a company at any time—
(a) any sale of shares in the company, whether to that person or to a person from whom he acquires the shares directly or indirectly, which took place before that time and was effected in pursuance of arrangements for transferring control of the company, or
(b) any sale of shares in the company to another person from whom the first-mentioned person acquired them, directly or indirectly, being a sale which took place after that time and was effected in pursuance of arrangements for transferring the shares to the first-mentioned person,
shall be treated for the purposes of the two foregoing sections as a sale in consequence of which the immediate purchaser will have control of the company.
(4) For the purposes of this and the two foregoing sections a sale to a company under a person's control, or to his nominee, shall be treated as a sale to him, and the creation of an interest in favour of a company under a person's control, or in favour of his nominee, shall be treated as the creation of the interest in his favour.
(5) For the purposes aforesaid two or more persons acting together to secure or exercise control of a company shall be treated in relation to that company as a single person.
(6) Where a sale of shares is effected in pursuance of a previous agreement, the time of the sale shall be taken for the purposes of the two foregoing sections and of the foregoing provisions of this section to be the time of the making of the agreement.
num: 49
paragraphs: —(1) In this Part of this Act—
“annual payment” means any payment from which, apart from any insufficiency of profits or gains of the person making it, tax is deductible under Rule 19 of the General Rules;
“balancing charge” means a balancing charge under Part V of the Finance Act, 1959 ;
num: 50
paragraphs: —(1) The precedent partner of any partnership, when required to do so by a notice given to him in relation to any year of assessment by an inspector of taxes, shall, within the time limited by the notice, prepare and deliver to the inspector a return in the prescribed form of—
(a) all the sources of income of the partnership for the year of assessment (in this section referred to as the preceding year) immediately preceding the year of assessment in relation to which the notice is given;
(b) the amount of income from each source for the preceding year computed in accordance with subsection (2) of this section;
(c) such further particulars for the purposes of income tax (including sur-tax) for the preceding year or the year of assessment as may be required by the notice or indicated by the prescribed form.
(2) The amount of income from any source to be included in a return under this section shall be computed in accordance with the provisions of the Income Tax Acts save that the computation shall be made in all cases by reference to the preceding year :
Provided that—
(a) in the case of such interest as is referred to in section 3 of the Finance Act, 1956 , the computation shall be made without regard to that section;
(b) where, in the case of a trade, an account has been made up to a date within the preceding year or more accounts than one have been made up to dates within that year, the computation shall be made by reference to the period or to all the periods, where there are more than one, for which accounts have been made up as aforesaid.
(3) If a person delivers to any inspector of taxes a return in a prescribed form, he shall be deemed to have been required by a notice under this section to prepare and deliver that return.
num: 51
paragraphs: —(1) In the case of a partnership trade the Income Tax Acts shall, subject to the provisions of this Part of this Act, have effect in relation to any partner in the partnership as if for any relevant period—
(a) any profits or gains arising to him from the trade and any loss sustained by him therein were respectively profits or gains of, and loss sustained in, a trade (hereafter in this Part referred to as a several trade) carried on solely by him being a trade—
(i) set up or commenced at the beginning of the relevant period, or if he commenced to be engaged in carrying on the partnership trade at some time in the relevant period other than the beginning thereof, at the time when he so commenced, and
(ii) when he ceases to be engaged in carrying on the partnership trade, either during the relevant period or at the end thereof, permanently discontinued at the time when he so ceases, and
(b) he had paid the part he was liable to bear of any annual payment paid by the partnership.
(2) (a) For any year or period within the relevant period the amount of the profits or gains arising to any partner from his several trade, or the amount of loss sustained by him therein, shall, for the purposes of subsection (1) of this section, be taken to be so much of the full amount of the profits or gains of the partnership trade or, as the case may be, of the full amount of the loss sustained in the partnership trade as would fall to his share on an apportionment thereof made in accordance with the terms of the partnership agreement as to the sharing of profits and losses.
(b) Where the year or period (hereafter in this paragraph referred to as the period of computation) for which the profits or gains of, or the loss sustained in, the several trade of a partner is to be computed under this subsection, is, or is part of, a year or period for which an account of the partnership trade has been made up, sections 15 and 16 of the Finance Act, 1929 , shall apply in relation to the partner as if an account of his several trade had been made up for the period of computation.
(c) Where in the case of the several trade of a partner the basis period for any year of assessment begins before the 6th day of April, 1965, the profits or gains of that basis period shall be computed in accordance with the foregoing provisions of this subsection notwithstanding that those provisions were not in force in that period or some part thereof.
(3) For the purposes of subsection (2) of this section, the full amount of the profits or gains of the partnership trade for any year or period, or the full amount of the loss sustained in such trade in any year or period, shall, subject to section 53 of this Act, be determined by the inspector of taxes and any such determination shall be made as it would have fallen to be made if the trade—
(a) had been set up or commenced at the beginning of the relevant period, and
(b) where the relevant period has come to an end, had been permanently discontinued at the end of that period, and
(c) had at all times within the relevant period been carried on by one and the same person and everything done in the carrying on thereof to or by the persons by whom it was in fact carried on had been done to or by that person:
Provided that in a case in which the relevant period began at some time before the 6th day of April, 1965, and the trade did not fall to be treated for the purposes of income tax as having been set up or commenced at that time, the relevant period shall, for the purposes of this subsection, be deemed to have begun at the time at which the trade was treated for the purposes of income tax as having been set up or commenced and, in any such case, any profits or gains arising to any person from the trade, or any loss sustained by him in the trade, for any year or period within the relevant period during which he was engaged in the trade on his own account shall be deemed to be profits or gains arising to him from, or, as the case may be, loss sustained by him in, a partnership trade in which he was entitled during the year or period in question to the full amount of the profits or gains arising or was liable to bear the full amount of the loss.
(4) Where the several trade of a partner is, under subsection (1) of this section, deemed to have been set up or commenced before the 6th day of April, 1965, section 5 of the Finance Act, 1942 , shall apply as if this section had always had effect save that for the year 1964-65, where the claim under the said section 5 is for the year 1965-66, the amount of the assessment in respect of the profits or gains of the several trade shall, for the purposes of the said section 5, be taken to be the partner's share, computed in accordance with the Income Tax Acts, of the amount of the profits or gains of the partnership trade on which the partnership was assessed for the year 1964-65, no regard being had to any deduction made therefrom in respect of a loss or to any capital allowance or balancing charge made to or on the partnership.
(5) Where in relation to a partnership trade, the relevant period, having begun before the 6th day of April, 1964, ends within the year 1965-66, any additional assessment in respect of the profits or gains of the trade which, if this Part had not been enacted and the trade had fallen to be treated as permanently discontinued within the year 1965-66, might have been made, under paragraph (b) of subsection (1) of section 12 of the Finance Act, 1929 , for the year 1964-65 may be made notwithstanding the enactment of this Part.
num: 52
paragraphs: —(1) The provisions of the Income Tax Acts as regards the making of capital allowances and balancing charges in charging the profits or gains of a trade shall, in relation to the several trade of a partner in a partnership, have effect subject to the following provisions of this section.
(2) Where for any year of assessment a claim has been made, as provided by subsection (9) of this section, by the precedent partner for the time being of any partnership, there shall be made to any partner in the partnership in charging the profits or gains of his several trade a capital allowance in respect of any expenditure or property equal to his appropriate share of any capital allowance for that year (excluding any amount carried forward from an earlier year) (hereafter in this section referred to as a joint allowance) which, apart from any insufficiency of profits or gains, might have been made in respect thereof in charging the profits or gains of the partnership trade if the Income Tax Acts had provided that those profits should be charged by joint assessment on the persons carrying on the trade in the year of assessment as if—
(a) those persons had at all times been carrying on the trade and everything done to or by their predecessors in, or in relation to, the carrying on thereof had been done to or by them, and
(b) the trade had been set up or commenced at the beginning of the relevant period and, where the relevant period has come to an end, had been permanently discontinued at the end of that period.
(3) For any year of assessment there shall be made on any partner in a partnership in charging the profits or gains of his several trade a balancing charge equal to his appropriate share of any balancing charge (hereafter in this section referred to as a joint charge) which would have fallen to be made for that year in charging the profits or gains of the partnership trade if the Income Tax Acts had provided that those profits should be charged as specified in subsection (2) of this section.
num: 53
paragraphs: —(1) The inspector of taxes may give notice to the partnership concerned of any determination made by him under subsection (3) of section 51 or subsection (6) of section 52 of this Act by delivering a statement in writing thereof to the precedent partner for the time being of the partnership and all the provisions of the Income Tax Acts relating to appeals against assessments to income tax shall, with any necessary modifications, apply in relation to any determination and any notice of a determination as if they were respectively such an assessment and notice of such an assessment.
(2) Where a determination has become final and conclusive or, in the case of a determination under subsection (6) of section 52 of this Act has become final and conclusive subject to paragraph (b) of that subsection, no question as to its correctness shall be raised on the hearing or on the rehearing of an appeal by any partner either against an assessment in respect of the profits or gains of his several trade or against a determination by the inspector of taxes on a claim under section 34 of the Income Tax Act, 1918.
(3) Where on any appeal such as is mentioned in subsection (2) of this section any question arises as to an apportionment falling to be made under subsection (2) of section 51 or subsection (7) of section 52 of this Act and it appears that the question is material as respects the liability to income tax (for whatever year of assessment) of two or more persons, all those persons shall be notified of the time and place of the hearing and shall be entitled to appear and be heard by the Special Commissioners or to make representations to them in writing.
num: 54
paragraphs: —(1) Where for any year of assessment a charge under section 50 of the Finance Act, 1959 (hereafter in this section referred to as a joint charge) would have fallen to be made in charging the profits or gains of a partnership trade if the Income Tax Acts had provided that those profits or gains should be charged as specified in subsection (2) of section 52 of this Act, there shall be made on any partner in the partnership in charging the profits or gains of his several trade a charge under the said section 50 equal to his appropriate share of the joint charge.
(2) For the purposes of subsection (1) of this section a partner's appropriate share of a joint charge shall be arrived at in the same way as his appropriate share of a joint charge within the meaning of section 52 of this Act is to be arrived at by virtue of subsection (7) of that section.
(3) Section 56 of the Finance Act, 1959 , is hereby amended by the substitution for subsection (2) of the following subsection:
“(2) Where, under the provisions of Chapter V of this Part of this Act as modified by Part VIII of the Finance Act, 1965 , charges under section 50 of this Act fall to be made on two or more persons as being the persons for the time being carrying on a trade, and the relevant period, within the meaning of the said Part VIII, comes to an end, the provisions of subsection (1) of this section shall have effect in relation to the ending of the relevant period as they have effect where a body corporate commences to be wound up :
Provided that—
(a) the additional sums which, under the said subsection, fall to be charged for the year in which the relevant period ends shall be aggregated and apportioned among the members of the partnership immediately before the ending of the relevant period according to their respective interests in the partnership profits at that time and each partner (or, if he is dead, his personal representatives) charged for his proportion, and
(b) each partner (or, if he is dead, his personal representatives) shall have the same right to require a reduction of the total income tax (including sur-tax) payable by him or out of his estate by reason of the increase as would have been exercisable by the personal representatives under the said subsection (1) in the case of a death, and the proviso to that subsection shall have effect accordingly but as if references to the amount of income tax (including sur-tax) which would have been payable by the deceased or out of his estate in the event therein mentioned were a reference to the amount of income tax (including sur-tax) which would in that event have fallen to be paid or borne by the partner in question or out of his estate.”
num: 55
paragraphs: —(1) The following rule shall be substituted for Rule 11 of the Rules applicable to Cases I and II of Schedule D :
“11. (1) If at any time after the 5th day of April, 1965, a trade, profession or vocation which immediately before that time was carried on by an individual person (hereafter in this paragraph referred to as the predecessor) becomes carried on by another individual person or by a partnership of persons (including a partnership in which the predecessor is a partner), the tax payable for all years of assessment by the predecessor shall be computed as if the trade, profession or vocation had been permanently discontinued at that time.
(2) If at any time after the 5th day of April, 1965, an individual person (hereafter in this paragraph referred to as the successor) succeeds to a trade, profession or vocation which immediately before that time was carried on by another individual person or by a partnership of persons (including a partnership in which the successor was a partner), the tax payable for all years of assessment by the successor shall be computed as if he had set up or commenced the trade, profession or vocation at that time.
(3) In the case of the death of a person who, if he had not died, would, under the provision of this rule, have become chargeable to income tax for any year, the tax which would have been so chargeable shall be assessed and charged upon his executors or administrators, and shall be a debt due from and payable out of his estate.”
num: 56
paragraphs: — Section 83 of the Finance Act, 1963 , is hereby amended by the insertion after subsection (2) of the following subsection:
“(2A) Any reference in this Part of this Act to one person being connected with another shall be construed in accordance with subsection (3) of section 41 of the Finance Act, 1965 .”
num: 57
paragraphs: — Section 86 of the Finance Act, 1963 , is hereby amended by—
(i) the insertion after subsection (2) of the following subsections:
“(2A) Where, under the terms subject to which a lease is granted, a sum becomes payable by the lessee in lieu of the whole or a part of the rent for any period, or as consideration for the surrender of the lease, the lease shall be deemed for the purposes of this section to have required the payment of a premium to the lessor (in addition to any other premium) of the amount of that sum; but—
(a) in computing tax chargeable by virtue of this subsection in respect of a sum payable in lieu of rent, the term of the lease shall be treated as not including any period other than that in relation to which the sum is payable;
(b) notwithstanding anything in subsection (1) of this section, rent treated as arising by virtue of this subsection shall be deemed to become due when the sum in question becomes payable by the lessee.
(2B) Where, as consideration for the variation or waiver of any of the terms of a lease, a sum becomes payable by the lessee otherwise than by way of rent, the lease shall be deemed for the purposes of this section to have required the payment of a premium to the lessor (in addition to any other premium) of the amount of that sum; but in computing tax chargeable by virtue of this subsection the term of the lease shall be treated as not including any period which precedes the time at which the variation or waiver takes effect or falls after the time at which the variation or waiver ceases to have effect, and notwithstanding anything in subsection (1) of this section rent treated as arising by virtue of this subsection shall be deemed to become due when the contract providing for the variation or waiver is entered into.”;
(ii) the insertion in subsection (3) of “, (2A) or (2B)” before “of this section” and before “shall not apply” and the addition to the said subsection (3) of the following proviso :
“Provided that where the amount relates to a payment falling within the said subsection (2B), it shall not be so treated unless the payment is due to a person connected with the lessor.”;
(iii) the deletion in paragraph (a) of subsection (4) of “of premium” and of “subsection (1) or subsection (3) of” and the substitution in that paragraph of “foregoing provisions of this section” for “said subsection (1) or, as the case may be, the said subsection (3)”;
(iv) the deletion in paragraph (b) of subsection (4) of “subsection (1) or subsection (3) of” and of “of premium”.
num: 58
paragraphs: —The following sections are hereby inserted in the Finance Act, 1963 , after section 86 :
“86A.—(1) Where the terms subject to which a short lease was granted are such that the lessor having regard to values prevailing at the time it was granted, and on the assumption that the negotiations for the lease were at arm's length, could have required the payment of an additional sum (hereafter in this section referred to as the amount foregone) by way of premium, or additional premium, for the grant of the lease, then, on any assignment of the lease for a consideration—
(a) where the lease has not previously been assigned, exceeding the premium, if any, for which it was granted, or
(b) where the lease has been previously assigned, exceeding the consideration for which it was last assigned,
num: 59
paragraphs: —The following section is hereby substituted for section 92 of the Finance Act, 1963 :
“92.—(1) Where, in relation to any premises, an amount (hereafter in this section referred to as the amount chargeable)—
(a) has become chargeable to tax under subsection (1), (2), (2A), (2B) or (3) of section 86 or under section 86A or 86B of this Act, or
(b) would have become so chargeable but for subsection (4) of the said section 86 or but for subsection (2) of section 93 of this Act or but for any exemption from tax,
num: 60
paragraphs: —The following section is hereby substituted for section 93 of the Finance Act, 1963 :
“93.—(1) Where in relation to any premises an amount has become or would have become chargeable to tax as mentioned in subsection (1) of section 92 of this Act by reference to a lease, estate or interest, the person for the time being entitled to that lease, estate or interest shall, subject to the provisions of the following subsections of this section, be treated for the purposes of subsection (4) of section 84 of this Act as paying rent, accruing from day to day, in respect of the premises (in addition to any rent actually paid), during any part of the relevant period in relation to the said amount for which he is entitled to the lease, estate or interest and in all bearing to that amount the same proportion as that part of the said relevant period bears to the whole.
(2) Where in relation to any premises an amount has become or would have become chargeable to tax as aforesaid, and by reference to a lease granted out of, or a disposition of, the lease, estate or interest by reference to which the said amount (hereafter in this section referred to as the prior chargeable amount) so became or would have become chargeable, a person would apart from this subsection be chargeable under section 86, 86A or 86B of this Act on any amount (hereafter in this section referred to as the later chargeable amount), the amount on which he is so chargeable shall, where no claim is or can be made under subsection (4) of the said section 86, be the excess, if any, of the later chargeable amount over the appropriate fraction of the prior chargeable amount or, where the lease or disposition by reference to which the person would be chargeable as aforesaid extends to a part only of the said premises, the excess, if any, of the later chargeable amount over so much of the appropriate fraction of the prior chargeable amount as, on a just apportionment, is attributable to that part of the premises.
(3) In a case in which subsection (2) of this section operates to reduce the amount on which, apart from that subsection, a person would be chargeable by reference to a lease or disposition, subsection (1) of this section shall apply for the relevant period in relation to the later chargeable amount only if the appropriate fraction of the prior chargeable amount exceeds the later chargeable amount and shall then apply as if the prior chargeable amount were reduced in the proportion which the said excess bears to the said appropriate fraction:
Provided that where the lease or disposition extends to a part only of the premises mentioned in the said subsection (2), the said subsection (1) and this subsection shall be applied separately in relation to that part and to the remainder of the premises but as if for any reference to the prior chargeable amount there were substituted a reference to that amount proportionately adjusted.
(4) In this section ‘the relevant period’ means in relation to any amount—
(a) where the amount arose under section 86 of this Act, the period treated, in computing that amount, as being the duration of the lease;
(b) where the amount arose under section 86A of this Act, the period treated, in computing that amount, as being the duration of the lease remaining at the date of the assignment;
(c) where the amount arose under section 86B of this Act, the period beginning with the sale and ending on the date fixed under the terms of the sale as the date of the reconveyance or grant, or, if that date is not fixed, ending with the earliest date at which the reconveyance or grant could take place in accordance with the terms of the sale.
(5) For the purposes of subsections (2) and (3) of this section the appropriate fraction of the prior chargeable amount is the sum which bears to that amount the same proportion as the length of the relevant period in relation to the later chargeable amount bears to the length of the relevant period in relation to the prior chargeable amount.
(6) Where the prior chargeable amount arose under subsection (2) of section 86 of this Act by reason of an obligation which included the incurring of expenditure in respect of which any allowance has fallen or will fall to be made under Part V of the Finance Act, 1959 , this section shall apply as if the obligation had not included the incurring of that expenditure and the prior chargeable amount had been calculated accordingly.
(7) Where the prior chargeable amount arose under section 86B of this Act and the reconveyance or grant in question takes place at a price different from that taken in calculating that amount or on a date different from that taken in determining the relevant period in relation to that amount, the foregoing provisions of this section shall be deemed to have had effect (for all relevant years of assessment) as they would have had effect if the actual price or date had been so taken and such adjustments of liability to tax shall be made, by means of additional assessment or otherwise, as may be necessary.”
num: 61
paragraphs: —(1) In this section—
“the principal section” means section 22 of the Finance Act, 1950 ;
“the 1964 amending section” means section 29 of the Finance Act, 1964 ;
“the fifteenth additional annuity” means the sum charged on the Central Fund under subsection (4) of this section;
“the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.
(2) Subsection (4) of the 1964 amending section shall, in relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of March, 1966, have effect with the substitution of “£1,642,308” for “£1,588,036”.
(3) Subsection (6) of the 1964 amending section shall have effect with the substitution of “£1,041,884” for “£1,027,246”.
(4) A sum of £1,819,122 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of March, 1966.
(5) The fifteenth 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 fifteenth additional annuity, not exceeding £1,176,735 in any financial year, may be applied towards defraying the interest on the public debt.
(7) The balance of the fifteenth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.
num: 62
paragraphs: — Section 11 of the Finance Act, 1962 , is hereby amended by the substitution in subsections (1) and (2) of “the 31st day of March, 1968” for “the 31st day of March, 1965”.
num: 63
paragraphs: — Section 2 of the Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 , is hereby amended by the substitution therein of “within the period of twenty years” for “within the period of ten years”.
num: 64
paragraphs: —(1) This section applies to a gift of money which, on or after the 6th day of April, 1965, is made to the Minister for Finance for use for any purposes for or towards the cost of which public moneys are provided and which is accepted by that Minister.
In this subsection “public moneys” means moneys charged on or issued out of the Central Fund or provided by the Oireachtas.
(2) Where a person who has made a gift to which this section applies claims relief from tax by reference thereto, the following provisions of this section shall have effect.
(3) For the purposes of income tax (including sur-tax) for the year of assessment in which the person makes the gift, the amount thereof shall be deducted from or set off against any income of the person chargeable to tax for that year and tax shall, where necessary, be discharged or repaid accordingly; and the total income of the person or, where the person is a married woman whose income is deemed to be the income of her husband, the total income of the husband shall be calculated accordingly.
In this subsection “total income” means total income from all sources estimated in accordance with the provisions of the Income Tax Acts.
(4) Where a gift to which this section applies is made by a company, the amount thereof shall be allowed as a deduction in computing for the purposes of corporation profits tax the profits of the company arising in the accounting period in which the gift is made.
num: 65
paragraphs: —(1) Where, on an appeal against an assessment to income tax or to corporation profits tax being brought before them for hearing, the Special Commissioners—
(a) on the oral or written application of the appellant, postpone the hearing, or
(b) having commenced the hearing, adjourn it, they may order that there shall be paid, notwithstanding the appeal, so much of the tax in the assessment as in their opinion, on the basis of the information available, is likely to become payable on or after the determination of the appeal.
(2) In relation to a case in which an order is made under subsection (1) of this section in the absence of the appellant, the following provisions shall have effect:
(a) the inspector of taxes or other officer of the Revenue Commissioners shall give notice in writing to the appellant of the making of the order;
(b) the appellant if aggrieved by the order may, within fourteen days after the date of the notice referred to in paragraph (a) of this subsection, make representations in writing to the Special Commissioners in regard to the order;
(c) the Special Commissioners, having considered any representations made to them in accordance with paragraph (b) of this subsection, may either confirm the order or make a revised order, and any such revised order shall supersede the first-mentioned order.
(3) Where the appeal brought before the Special Commissioners for hearing relates to an assessment to income tax (hereafter in this subsection referred to as the relevant assessment) that is one of a number of assessments (hereafter in this subsection referred to as the aggregated assessments) the tax in which is stated in one sum under subsection (1) of section 21 of the Finance Act, 1963 , the amount of tax in the relevant assessment shall, for the purposes of subsection (1) of this section, be arrived at by deducting from the said one sum the amount of tax, if any, which is payable under subsection (3) of the said section 21; and, where appeals against two or more of the aggregated assessments are brought before the Special Commissioners, the total amount of tax in those assessments shall be arrived at in like manner and the provisions of this section shall apply as if that total amount were an amount of tax in a single assessment.
(4) Where in relation to any assessment an amount of tax has been ordered to be paid under the foregoing provisions of this section—
(a) that amount shall be collected, paid and carry interest as if the appeal against the assessment had been determined when the order was made and the amount of tax specified by the order were the amount of tax chargeable in accordance with the determination, and
(b) on the determination of the appeal against the assessment, any balance of tax chargeable in accordance with the determination shall be paid, or any tax overpaid shall be repaid, as the case may require,
and, in a case to which subsection (2) of this section applies, the order shall, for the purposes of paragraph (a) of this subsection, be deemed to have been made on the date of the notice under paragraph (a) of the said subsection (2).
(5) Every reference in this section to an appellant includes a reference to a person acting on behalf of the appellant in relation to the appeal.
(6) Any of the powers conferred on the Special Commissioners by this section may be exercised by one Special Commissioner.
num: 66
paragraphs: —(1) (a) Each enactment specified in column (2) of Part I of the Third Schedule to this Act is hereby repealed to the extent specified in column (3) of that Part.
(b) Paragraph (a) of this subsection shall be deemed to have come into operation on the 6th day of April, 1965.
num: 67
paragraphs: —All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.
num: 68
paragraphs: —(1) This Act may be cited as the Finance Act, 1965 .
(2) Parts I , VII , VIII and IX and sections 64 and 65 (so far as they relate to income tax) of this Act shall be construed together with the Income Tax Acts.
(3) Part II of this Act, so far as it relates to duties of customs, shall be construed together with the Customs Acts and, 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 IV of this Act shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.
(5) Part V and sections 64 and 65 (so far as they relate to corporation profits tax) of this Act shall be construed together with Part V of the Finance Act, 1920 , and the enactments amending or extending that Part.
(6) Part VI of this Act shall be construed together with Part VI of the Finance Act, 1963 .
(7) Parts I , VII , VIII and IX of this Act shall, save as is otherwise expressly provided therein, be deemed to come into force and shall take effect as on and from the 6th day of April, 1965.
(8) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment, including this Act.