Finance Act, 1944
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, 1944, at the rate of seven shillings and sixpence in the pound.
(2) Sur-tax (other than excess sur-tax) for the year beginning on the 6th day of April, 1944, shall be charged in respect of the income of any individual the total of which from all sources exceeds one 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, 1943.
(3) Where the total income, within the meaning of section 5 of the Finance Act, 1941 (No. 14 of 1941), of any individual for the year beginning on the 6th day of April, 1944, exceeds one thousand five hundred pounds and includes any such profits as are mentioned in the said section 5 , an additional duty of surtax (in this section referred to as excess sur-tax) shall be charged for the said year beginning on the 6th day of April, 1944, at the rate of seven shillings and sixpence in the pound in respect of so much of the said income as is made chargeable therewith by subsection (1) of the said section 5 as modified and applied by the subsequent provisions of this section.
(4) The several statutory and other provisions which were in force on the 5th day of April, 1944, in relation to income tax and sur-tax (including excess sur-tax) shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax (including excess sur-tax) to be charged as aforesaid for the year beginning on the 6th day of April, 1944.
(5) In the application (by virtue of the next preceding sub-section of this section) of Part II of the Finance Act, 1941 (No. 14 of 1941), to the excess sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1944, the said Part II shall have effect with and subject to the following modifications, that is to say:—
(a) the expression “the 6th day of April, 1944” shall be substituted for the expression “the 6th day of April, 1941,” wherever that expression occurs in the said Part II;
(b) in paragraph (b) of sub-section (3) of section 7 of the said Act, the expression “the 5th day of April, 1945” shall be substituted for the expression “the 5th day of April, 1942,” and the word “eight” shall be substituted for the word “five” and the expression “the 5th day of April, 1944,” shall be substituted for the expression “the 5th day of April, 1941”.
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paragraphs: —Paragraph (2) of Rule 6 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, shall have effect as if the words “provided that the burden of the wear and tear of the machinery or plant will in fact fall directly on him.” were added at the end of the said paragraph.
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paragraphs: —(1) The amendments specified in the second column of the Schedule to this Act shall be made in the enactments specified in the first column of that Schedule.
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paragraphs: —(1) A children's allowance under the Act of 1944 shall be exempt from income tax (including sur-tax) and shall not be reckoned in computing income for the purposes of the Income Tax Acts.
(2) Where, but for this sub-section, a claimant would be entitled, under section 21 of the Finance Act, 1920 , as amended by any subsequent enactment, to a deduction of sixty pounds in respect of any child living and under the age of sixteen years at the commencement of a year of assessment, the said deduction in respect of any such child in excess of two such children shall be reduced, for the year beginning on the 6th day of April, 1944, to forty-eight pounds and, for the year beginning on the 6th day of April, 1945 or any subsequent year, to forty-three pounds.
(3) Sub-section (2) of this section shall not apply in the case of a claimant who, because he is compelled to reside outside the State by reason of the circumstances of his trade, profession or employment, is not resident in any region on any date (being the qualifying date in relation to any payment period for that region) in the year of assessment to which his claim relates.
(4) In this section—
the expression “the Act of 1944” means the Children's Allowances Act, 1944 (No. 2 of 1944);
the expressions “qualifying date”, “payment period” and “region” have the same meanings as in the Act of 1944.
num: 5
paragraphs: —Sub-section (1) of section 22 (which relates to deduction in respect of dependent relatives) of the Finance Act, 1920 , shall have effect as if the words “a person (being a son or daughter of the claimant)” were substituted for the words “a daughter”.
num: 6
paragraphs: — Section 3 (which relates to exemption of certain military pensions and gratuities) of the Finance Act, 1925 (No, 28 of 1925), is hereby amended by the insertion therein of the following sub-section section in lieu of sub-section (2) now (by virtue of section 4 of the Finance Act, 1938 (No. 25 of 1938)) contained in the said section 3 , that is to say—
“(2) The wounds and disabilities pensions to which section 16 of the Finance Act, 1919 , applies shall include and be deemed always to have included all wound and disability pensions granted under the Army Pensions Acts, 1923 to 1943, and all gratuities in respect of wounds or disabilities similarly granted, and the said section 16 shall be construed and have effect accordingly.”
num: 7
paragraphs: —(1) Exemption shall be granted from tax under Schedule D of the Income Tax Act, 1918, in respect of the profits of any sweepstake held under the Act of 1933 by the Irish Red Cross Society which, but for this section, would have been assessable under Case 1 of the said Schedule on the Irish Red Cross Society or on the sweepstake committee appointed in pursuance of the Act of 1933 for the purpose of such sweepstake by the Irish Red Cross Society.
(2) In this section—
the expression “the Act of 1933” means the Public Hospitals Act, 1933 (No. 18 of 1933), as amended by the Public Hospitals (Amendment) (No. 2) Act, 1939 (No. 29 of 1939);
the word “sweepstake” has the meaning given to it by section 1 of the Act of 1933.
(3) This section shall be deemed to have come into force on and to have had effect as on and from the 6th day of April, 1939.
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paragraphs: —(1) Where—
(a) a person shows to the satisfaction of the Revenue Commissioners—
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paragraphs: —(1) Notwithstanding anything contained in the Income Tax Acts, assessments to income tax under Schedules D and E shall be made for such districts as the Revenue Commissioners shall from time to time direct.
(2) This section shall apply in respect of any assessment made after the passing of this Act, in relation to tax chargeable for any year of assessment, whether beginning before or after the passing of this Act.
num: 10
paragraphs: —The holding (whether before or after the passing of this Act) in camera, in pursuance of sub-section (9) of section 5 of the Finance Act, 1929 (No. 32 of 1929), of the hearing by the High Court or the Supreme Court of a case stated under the enactments mentioned in that sub-section shall not preclude the publication, in the law reports published by the Incorporated Council of Law Reporting for Ireland or in any other recognised law reports or in any reports printed with the permission of the said Incorporated Council, of a report of the proceedings before, or the judgments given by, the High Court or the Supreme Court, but no such report shall disclose the name of the person whose chargeability to tax is the subject of the case.
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paragraphs: —In this Part of this Act, the expression “the Act of 1941” means the Finance Act, 1941 (No. 14 of 1941), as amended or extended by subsequent enactments.
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paragraphs: —For the purpose of removing doubts, it is hereby enacted and declared that the word “remuneration”, when used in relation to a director of a company in any enactment relating to corporation profits tax (including excess corporation profits tax), shall be construed as meaning, and as having always meant, all remuneration, whether by way of fees, salary, bonus, commission or otherwise howsoever, payable by a company to a person in respect of a period during which he is or was a director of that company, whether that remuneration is or was payable to him wholly in his capacity as director of that company or wholly in some other capacity or partly in his capacity as such director and partly in some other capacity.
num: 13
paragraphs: —(1) The following provisions shall apply and have effect in relation to the ascertainment, for the purpose of a charge to excess corporation profits tax, of the profits, for any accounting period ending after the 31st day of December, 1943, of a company the directors whereof have a controlling interest therein, that is to say:—
(a) in the case of a company, the standard profits of which are the profits of a trade year, the amount of the deduction in respect of the total remuneration of all directors (in this sub-section referred to as the total deduction) to be allowed shall not exceed the total deduction which was allowed in computing, under the enactments for the time being in force in relation to corporation profits tax, the profits of the company for that trade year;
(b) in the case of a company, the standard profits of which are the substituted standard or the sum of two thousand five hundred pounds, and which had one and only one trade year (being a trade year ended in the year ended on the 31st day of August, 1939) or which had two and only two consecutive trade years the later of which ended in the year ended on the 31st day of August, 1939, or which had three or more consecutive trade years the last of which ended in the year ended on the 31st day of August, 1939, the total deduction to be allowed shall not exceed the total deduction which was allowed in computing, under the said enactments, the profits of the company for—
(i) if there was one and only one such trade year, that trade year, or
(ii) if there were two and only two such consecutive trade years, whichever of those trade years there was so allowed the greater total deduction, or
(iii) if there were three and only three such consecutive trade years, whichever of those trade years there was so allowed the greatest total deduction, or
(iv) if there were four or more such consecutive trade years, whichever of the last three of those trade years there was so allowed the greatest total deduction;
(c) in the case of a company the standard profits of which are the substituted standard or the sum of two thousand five hundred pounds and which had no trade year ended in the year ended on the 31st day of August, 1939, the total deduction to be allowed shall not exceed a sum representing three per cent. of the paid up issued capital of the company, unless, where the paid up issued capital is not less than fifteen thousand pounds, the Revenue Commissioners otherwise direct, in which case the total deduction to be allowed shall be the amount specified in the direction;
(d) the references in paragraph (b) of this sub-section to the profits of a company for a trade year shall, where the company has incurred a loss for that trade year, be construed as references to the loss of the company for that trade year, and such loss shall be computed in like manner as profits are required by law to be computed for the purposes of a charge to corporation profits tax;
(e) in the application of the provisions of the foregoing paragraphs of this sub-section to the assessment of excess corporation profits tax in respect of an accounting period or part of an accounting period which is less than twelve months, the maximum amount which may be allowed to be deducted under those provisions in respect of the total deduction shall be reduced to a sum which bears to the maximum amount specified in whichever of those provisions is applicable the same proportion as the said accounting period or part of an accounting period bears to twelve months;
(f) where, in the case of a company which had one or more trade years, a person, who is a director required to devote substantially the whole of his time to the service of the company in a managerial or technical capacity, was not a director during the trade year, by reference to which the total deduction under paragraph (a) or paragraph (b) of this sub-section is computed, but was during that trade year employed by the company, then, notwithstanding anything contained in this sub-section, the Revenue Commissioners, if they so think fit, may increase the total deduction by such amount (not exceeding the remuneration paid to that person for the said trade year) as they think proper;
(g) in this sub-section—
the word “capital” has the same meaning as it has in sub-paragraph (i) of paragraph (c) of sub-section (2) of section 16 of the Finance Act, 1942 (No. 14 of 1942),
the word “director” includes any person in accordance with whose directions or instructions the directors of a company are accustomed to act, but does not include a director who is required to devote substantially the whole of his time to the service of the company in a managerial or technical capacity and is not the beneficial owner of, or able (directly or through the medium of other companies or by any other indirect means) to control more than five per cent. of the ordinary stock or shares of the company.
(2) Section 43 of the Act of 1941 as amended by section 18 of the Finance Act, 1942 (No. 14 of 1942), shall cease to apply in respect of any accounting period ending after the 31st day of December, 1943.
num: 14
paragraphs: —(1) Where a post-appointed day company is an auxiliary of a pre-appointed day company, the post-appointed day company shall be deemed, for the purposes of this section, to be a subsidiary of the pre-appointed day company.
(2) Where—
(a) a post-appointed day company (in this sub-section referred to as the second company) is an auxiliary of another post-appointed day company (in this sub-section referred to as the first company), and
(b) the first company is deemed by sub-section (1) of this section to be a subsidiary of a pre-appointed day company,
the second company shall also be deemed, for the purposes of this section, to be a subsidiary of the pre-appointed day company.
(3) Where—
(a) of three or more post-appointed day companies, one is deemed by sub-section (1) of this section to be a subsidiary of a pre-appointed day company, and
(b) each of the other post-appointed day companies is an auxiliary of any one of the post-appointed day companies,
each of the other post-appointed day companies shall also be deemed, for the purposes of this section, to be a subsidiary of the pre-appointed day company.
(4) Where by virtue of the preceding provisions of this section a post-appointed day company would, but for this sub-section, be deemed to be a subsidiary of two or more pre-appointed day companies, it shall be treated as being a subsidiary of such one only of those pre-appointed day companies as the Revenue Commissioners may direct.
(5) Where a post-appointed day company is deemed by this section to be a subsidiary of a pre-appointed day company, then, unless the Revenue Commissioners otherwise direct, the following provisions shall, for the purpose of a charge to corporation profits tax, apply, that is to say—
(a) the post-appointed day company shall be deemed not to be a company;
(b) the trade or business or undertaking of a similar character, including the holding of investments, carried on by the post-appointed day company shall be deemed to be carried on by the pre-appointed day company;
(c) the assets of the post-appointed day company shall be deemed to be the assets of the pre-appointed day company.
(6) (a) Where the Revenue Commissioners are satisfied that part of the issued capital of a post-appointed day company, which is deemed by this section to be a subsidiary of a pre-appointed day company, would, if the said capital had been issued by the pre-appointed day company as its own capital, have entitled the pre-appointed day company either to a deduction from profits under section 41 of the Act of 1941 or to any increase in its substituted standard under section 39 of the Act of 1941, they may, for the purposes of the said sections, deem the said part of the issued capital of the post-appointed day company to be capital issued by the pre-appointed day company.
(b) In this sub-section the word “capital” has the same meaning as in sub-paragraph (i) of paragraph (c) of sub-section (2) of section 16 of the Finance Act, 1942 (No. 14 of 1942).
(7) Where, as the result of the application to a pre-appointed day company and one and only one post-appointed day company of the provisions set out in sub-section (5) of this section, the pre-appointed day company is liable to pay corporation profits tax of an amount in excess of the amount for which it would other wise be liable, the following provisions shall have effect, that is to say—
(a) the said companies shall be liable jointly and severally to pay the excess;
(b) if the said excess is paid by the pre-appointed day company, the pre-appointed day company may recover from the post-appointed day company an amount equal to the said excess.
(8) Where, as the result of the application to a pre-appointed day Company and two or more post-appointed day companies of the provisions set out in sub-section (5) of this section, the pre-appointed day company is liable to pay corporation profits tax of an amount in excess of the amount for which it would other wise be liable, the following provisions shall have effect, that is to say—
(a) the pre-appointed day company and each of the post-appointed day companies shall be liable jointly and severally to pay the excess;
(b) if the said excess is paid by the pre-appointed day company, the Special Commissioners may, on the application of the pre-appointed day company, apportion (which apportionment shall be final) the said excess between the post-appointed day companies in such proportions as the Special Commissioners think proper, and in that case the amount so apportioned to any post-appointed day company shall be recoverable from that post-appointed day company by the pre-appointed day company.
(9) (a) A company (in this paragraph referred to as the second company) shall, for the purposes of this section, be deemed to be an auxiliary of another company (in this paragraph referred to as the first company) if—
(i) the second company is incorporated after the first company, and
(ii) the first company holds more than fifty per cent. of the paid up ordinary issued capital of the second company.
(b) For the purposes of this sub-section—
(i) any shares of a company held by the nominees or the shareholders of another company shall be deemed to be held by that other company,
(ii) preference stock (other than preference stock carrying voting rights only when dividends are in arrear) which carry voting rights or preference shares (other than preference shares carrying voting rights only when dividends are in arrear) which carry voting rights shall be deemed to be ordinary stock or ordinary shares.
(10) In this section—
the expression “pre-appointed day company” means a company incorporated before the 7th day of May, 1941;
the expression “post-appointed day company” means a company incorporated on or after the 7th day of May, 1941;
references to corporation profits tax shall be construed as including references to excess corporation profits tax.
(11) (a) Subject to paragraph (b) of this sub-section, the provisions of this section shall apply and have effect in relation to any accounting period ending after the 31st day of December, 1943.
(b) Where the provisions set out in sub-section (5) of this section apply to a pre-appointed day company and a post-appointed day company, and the said companies inform the Revenue Commissioners that they desire the provisions of this section to apply and have effect in relation to all accounting periods ending after the date of the incorporation of the post-appointed day company, then the provisions of this section shall apply and have effect accordingly.
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paragraphs: —(1) Where the Revenue Commissioners are of opinion that the main purpose for which any transaction or transactions was or were effected (whether before or after the passing of this Act) was the avoidance or reduction of liability to corporation profits tax, they may, if they think fit, direct that such adjustments shall be made as respects liability, in respect of any accounting period ending after the 31st day of December, 1943, to corporation profits tax as they consider appropriate so as to counteract the avoidance or reduction of liability to corporation profits tax which would otherwise be effected by the transaction or transactions.
(2) Without prejudice to the generality of the powers conferred by sub-section (1) of this section, the powers conferred by the said sub-section shall extend to—
(a) the charging with corporation profits tax of companies which, but for the adjustments, would not be chargeable with any corporation profits tax or would not be chargeable to the same extent,
(b) the charging of a greater amount of corporation profits tax than would be chargeable but for the adjustments.
(3) Any company aggrieved by a direction of the Revenue Commissioners under this section may appeal to the Special Commissioners, whether on the ground that the main purpose of the transaction or transactions was not the avoidance or reduction of liability to corporation profits tax or on the ground that no direction ought to have been given or that the adjustments directed to be made are inappropriate and in relation to any such appeal all the provisions relating to appeals against assessments to corporation profits tax shall apply.
(4) References in this section to corporation profits tax shall be construed as including references to excess corporation profits tax.
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paragraphs: —Where—
(a) a company (in this section referred to as the new company) applies in writing to the Revenue Commissioners to make an apportionment under this section, and
(b) the new company satisfies the Revenue Commissioners—
(i) that it was incorporated after the 31st day of August, 1939, to carry on a trade or business similar in character to, but smaller in scale than, the trade or business of a company (in this section referred to as the old company) which has been dissolved and which had one or more trade years, and
(ii) that it does so carry on such trade or business, and
(iii) that more than fifty per cent. of the ordinary issued capital of the new company is held by persons who held in the aggregate more than fifty per cent. of the ordinary issued capital of the old company, and
(iv) that a substantial part of the organisation of the old company has been taken over by the new company, and
(v) that the new company was incorporated not later than one month after the dissolution of the old company, and
(c) the new company furnishes to the Revenue Commissioners such accounts, particulars and information as the Revenue Commissioners require for the purposes of the application,
the following provisions shall have effect—
(1) the Revenue Commissioners shall apportion to the new company an amount equal to so much of the profits of the old company for the trade year by reference to the profits of which the standard profits of the old company would have been computed if it had not been dissolved as the Revenue Commissioners consider appropriate to the trade or business carried on by the new company, and
(2) the amount so apportioned to the new company shall, if the new company so desires be the standard profits of the new company in respect of every accounting period ending after the 1st day of January, 1941.
num: 17
paragraphs: —The exemptions from corporation profits tax given by section 33 of the Finance Act, 1929 (No. 32 of 1929), as amended by section 30 of the Finance Act, 1931 (No. 31 of 1931) and paragraph (b) of sub-section (1) of section 47 of the Finance Act, 1932 (No. 20 of 1932), and continued until the 31st day of December, 1943, by section 44 of the Act of 1941, shall be and are hereby continued until the 31st day of December, 1946.
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paragraphs: —This part of this Act shall be read and construed together with Part V of the Finance Act, 1920 , as amended or extended by subsequent enactments, and, in particular, shall be read and construed together with Part V of the Act of 1941, Part IV of the Finance Act, 1942 (No, 14 of 1942), and Part III of the Finance Act, 1943 (No. 16 of 1943).
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paragraphs: —Sub-section (1) of section 34 of the Finance Act, 1931 (No. 31 of 1931), is hereby amended by the substitution, for paragraph (b) of the said sub-section, of the following paragraph, that is to say:—
“(b) in respect of the financial year commencing on the 1st day of April, 1945, and of each subsequent financial year, such sum, not exceeding forty thousand pounds, as the Minister for Finance may from time to time determine.”
num: 20
paragraphs: —With a view to providing moneys to meet general charges which will fall upon the Central Fund, the sum of one hundred thousand pounds shall be transferred and paid from the Road Fund to the Exchequer at such time or times in the financial year ending on the 31st day of March, 1945, and in such manner as the Minister for Finance shall direct.
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paragraphs: —On the winding up of any fund or account the assets of which fall to be paid into or disposed of for the benefit of the Exchequer, the Minister for Finance may direct that such assets shall, to such extent as he may think proper, be paid and transferred to the Savings Certificates Reserve Fund and placed to the credit of the Principal Reserve Account.
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paragraphs: —All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.
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paragraphs: —(1) This Act may be cited as the Finance Act, 1944.
(2) Part I of this Act shall be construed together with the Income Tax Acts.
(3) Part I of this Act shall, save as is otherwise expressly provided therein, be deemed to come into force on and shall take effect as on and from the 6th day of April, 1944.