Finance Act, 1985

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Application of section 31 (building societies) of Corporation Tax Act, 1976.

19.—(1) Subject to subsections (2) and (3), section 40 (1) of the Finance Act, 1977 (as extended by section 52 of the Finance Act, 1980 ) shall have effect in relation to the year 1985-86 as it has effect in relation to the years 1980-81 and 1981-82 with the modification that the reduced rate which, by virtue of the said section 40 (1) (as extended by this section) would, for the year 1985-86, be 70 per cent. of the standard rate shall, for that year, be 80 per cent. of the standard rate.

(2) The Revenue Commissioners and any building society may, as respects the year 1985-86, enter into relevant arrangements but modified, to such extent as shall be directed by the Minister for Finance, in so far as they relate to the sums on which tax is to be calculated in part at the standard rate and in part at a reduced rate.

(3) Any amount representing income tax which, under an assessment made for a year of assessment (being the year 1985-86 or any subsequent year of assessment), a building society is liable to account for and pay by virtue of relevant arrangements entered into by the Revenue Commissioners and the society as respects that year of assessment shall be payable in two equal instalments as follows—

(a) the first instalment on the 1st day of October in that year of assessment or, if it is later, on the day next after the day on which the assessment is made, and

(b) the second instalment on the 1st day of April in that year of assessment or, if it is later, on the day next after the day on which the assessment is made,

and the provisions of the Income Tax Acts as to the recovery of tax shall apply to each instalment of the tax in the same manner as they apply to the whole amount of the tax.

(4) In this section—

“building society” has the same meaning as in section 31 of the Corporation Tax Act, 1976 ;

“relevant arrangements” means arrangements of the kind referred to in the said section 31.