Income Tax Act, 1967.

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Number 6 of 1967

INCOME TAX ACT, 1967

ARRANGEMENT OF SECTIONS

Interpretation and Preliminary

Interpretation

Section
1.	Interpretation generally.
2.	Earned income.
3.	"Income Tax Acts".

Chapter II

Preliminary

4.	Charge; Schedules.
5.	Yearly assessments.
6.	Fractions of twenty shillings.
7.	Enactments in force for any year to apply to tax for succeeding year.
8.	Charge and deduction of tax not charged or deducted before passing of annual Act.

Part II

Schedules A and B

Chapter I

Schedule A

9.	Schedule A.
10.	Annual value for Schedule A.
11.	Owner-occupied private residence.
12.	Newly-built houses.
13.	Assessment by reference to annual rent.
14.	Persons chargeable.
15.	Separate assessments under Schedule A or Schedule B in certain cases.
16.	Diplomatic representatives.
17.	Mortgagees in possession.
18.	Right of persons by whom tax is paid to recoupment in certain cases.
19.	Occupier.
20.	Allowances in case of ecclesiastical or collegiate body.
21.	Allowance for drainage and other rates and expenditure on sea walls.
22.	Procedure and time-limits for claims under preceding provisions.
23.	Repairs allowance.
24.	Allowance for maintenance, repairs, insurance and management.
25.	Maintenance relief for small properties.
26.	Loss by flood or tempest.
27.	Universities, colleges, hospitals, schools and almshouses.
28.	Allowance for rates paid by landlord.
29.	Repayment of tax in respect of lost rent.

Chapter II

Schedule B

30.	Schedule B.
31.	Annual value for Schedule B.
32.	Persons chargeable.
33.	Assessment of certain profits derived from the keeping of a stallion.
34.	Husbandry: election to be charged under Schedule D.
35.	Husbandry: profits falling short of assessable value.
36.	Woodlands.
37.	Assessment of profits from occupation of land under Schedule D in certain other cases.
38.	Relief under Schedule B in case of loss by flood or tempest.

Chapter III

General

39.	Revenue Commissioners to be furnished with copies of rates.
40.	Production of valuations to inspector.
41.	Power of Revenue Commissioners to direct revaluation.
42.	Unoccupied property.
43.	Savings with respect to actions of ejectment.
44.	Relief to persons prevented from using their land.
45.	Relief to farming co-operative societies and farming trustees.
46.	Definition of "the municipal rate".

Part III

SCHEDULE C AND PRINCIPAL PROVISIONS RELATING THERETO

47.	Schedule C.
48.	Charge and payment.
49.	Stocks of State and of foreign diplomats.
50.	Securities of foreign territories.
51.	Definitions.

Part IV

SCHEDULE D

Chapter I

Charge to Tax and General

52.	Schedule D.
53.	The Cases.
54.	Market gardening.
55.	Interest, etc., paid without deduction of tax under Schedule C.
56.	Tax on quarries, mines and other concerns.

Chapter II

Cases I and II

Chapter III

Trades and Professions Carried on in Partnership

69.	Interpretation.
70.	Power to require return as to sources of partnership income and amounts derived therefrom.
71.	Separate assessment of partners.
72.	Capital allowances and balancing charges in partnership cases.
73.	Modification of provisions as to appeals.
74.	Provision as to charges under section 288.

Chapter IV

Case III

75.	Income chargeable under Case III.
76.	Foreign securities and possessions.
77.	Basis of assessment.
78.	Cattle and milk dealers.

Chapter V

Case IV-General

79.	Basis of assessment.

Chapter VI

Taxation of Rents and Certain Other Payments

80.	Interpretation.
81.	Taxation of rents under short leases.
82.	Additional deductions in certain cases.
83.	Treatment of premiums, etc., as rent.
84.	Charge on assignment of lease granted at undervalue.
85.	Charge on sale of land with right to reconveyance.
86.	Exclusion of certain lettings.
87.	Taxation of certain payments in respect of easements.
88.	Provisions as to assessment.
89.	Relief in respect of losses.
90.	Relief for amount not received.
91.	Deduction by reference to premium, etc., paid in the computation of profits for purposes of Schedule D, Cases I & II.
92.	Deductions by reference to premiums, etc., paid in computation of profits for purposes of this Chapter.
93.	Taxation of rents under long lease and certain other payments.
94.	Returns, etc.
95.	Restriction of section 24.

Chapter VII

Profits or Gains from Dealing in or Developing Land

96.	Interpretation.
97.	Extension of Schedule D charge to certain profits from dealing in or developing land.
98.	Computation under Case I of Schedule D of profits or gains from dealing in or developing land.
99.	Computation under Case IV of Schedule D of profits or gains from dealing in or developing land.
100.	Transfers of interests in land between certain associated persons.
101.	Tax to be charged under Case IV of Schedule D in relation to the sale of certain shares.
102.	Application of section 101 to sales of shares in holding companies.
103.	Provisions supplementary to sections 101 and 102.

Chapter VIII

Payment of Certain Rents Without Deduction of Tax

104.	Payment of certain rents without deduction of tax.

Chapter IX

Miscellaneous Provisions as to Schedule D

105.	Persons chargeable.
106.	Interest payable out of rates.
107.	Apportionment of profits.
108.	Limitation of deductions for certain taxes.

Part V

SCHEDULE E AND PRINCIPAL PROVISIONS RELATING THERETO

Chapter I

Charge to Tax, etc.

109.	Schedule E.
110.	Persons chargeable and extent of charge.
111.	Basis of assessment.
112.	Making of deductions.
113.	Appeal against amount of deduction.

Chapter II

Payments on Retirement, etc.

114.	Payments on retirement or removal from office or employment.
115.	Exemptions and reliefs in respect of tax under section 114.

Chapter III

Expenses Allowances and Benefits in Kind

116.	Expenses allowances.
117.	Benefits in kind.
118.	Valuation of benefits in kind.
119.	Meaning of “director”, “employment” and “employment to which this Chapter applies”.
120.	Additional information in returns under section 178.
121.	Application of this Chapter.
122.	Interpretation.
123.	Unincorporated bodies, partnerships and individuals.

Chapter IV

Income Tax in Respect of Certain Emoluments

Part VI

Differentiation and Graduation of Tax by means of Reliefs

134.	Earned income relief.
135.	Allowances from unearned income of persons aged sixty-five or upwards.
136.	Relief for small incomes.
137.	Deduction allowed in ascertaining taxable income.
138.	Personal relief.
139.	Person taking charge of children of widower, widow or married man living apart from wife.
140.	Relative taking charge of unmarried person's brother or sister.
141.	Children.
142.	Dependent relatives.
143.	Premiums on post-1916 insurances and certain other payments.
144.	Exemption where total income does not exceed £240, and marginal relief.
145.	Insurance against expenses of illness.
146.	General provisions relating to allowances, deductions and reliefs.
147.	Basis of assessing income under Schedule A.
148.	Partners, joint tenants: separate claims.
149.	Method of allowance.
150.	Total income where assessment reduced.
151.	Relief for premiums on pre-1916 insurances.
152.	Life assurance relief—general provisions.
153.	Non-residents.
154.	Relief for income accumulated under trusts.

Part VII

Administration

Part VIII

Returns and Assessment, Provision against Double Assessment, and Relief in Respect of Error or Mistake

Chapter I

Returns and Assessment

167.	General notice to deliver lists and statements.
168.	Particular notice to persons chargeable.
169.	Returns by persons chargeable.
170.	Persons acting for incapacitated persons and non-residents.
171.	Notice to persons coming into district.
172.	Power to require return of income.
173.	Power to obtain information as to fees, commissions, etc.
174.	Power to require production of accounts and books.
175.	Power to obtain information as to interest paid or credited without deduction of tax.
176.	Delivery of lists by persons in receipt of income of others.
177.	Lists of lodgers and inmates.
178.	Lists of employees.
179.	Service of notice on new residents in district.
180.	Making of assessments under Schedules A and B.
181.	Making of assessments under Schedules D and E.
182.	Granting of allowances and reliefs.
183.	Aggregation of assessments.
184.	Assessment in absence of return.
185.	Functions of assessors.
186.	Additional assessments.
187.	Particulars of sums to be collected.
188.	Loss or destruction of assessments and other documents.
189.	Amendment of statutory forms.

Chapter II

Provision Against Double Assessment and Relief in Respect of Error or Mistake

190.	Double assessment.
191.	Error or mistake.

Part IX

Special Provisions as to Married Persons, Non-residents, Temporary Residents, Bodies of Persons, Incapacitated Persons, etc.

Chapter I

Special Provisions as to Married Persons

192.	General rule as to tax on husbands and wives.
193.	Personal reliefs on exercise of option for separate assessments.
194.	Collection from wife of tax assessed on husband attributable to her income.
195.	Right of husband to disclaim liability for tax on deceased wife's income.
196.	Married woman living with husband.
197.	Separate assessments to income tax.
198.	Separate assessments to sur-tax.

Chapter II

Special Provisions as to Non-residents and Temporary Residents

199.	Persons temporarily resident outside the State.
200.	Non-residents: assessment.
201.	Non-residents: profits from agencies, etc.
202.	Non-residents: control over residents.
203.	Non-residents: charge on percentage of turnover.
204.	Non-residents: merchanting profit.
205.	Non-residents: restrictions on chargeability.
206.	Temporary residents.

Chapter III

Special Provisions as to Bodies of Persons, Incapacitated Persons, Trustees and Agents, Personal Representatives and Receivers

207.	Bodies of persons.
208.	Trustees, guardians and committees.
209.	Liability of trustees, etc.
210.	Liability of parents, guardians and personal representatives.
211.	Assessment of personal representatives.
212.	Receivers appointed by the court.
213.	Protection for trustees, agents and receivers.

Part X

Special Provisions as to Assurance Companies and Investment Businesses

214.	Relief for expenses of management.
215.	Foreign assurance companies: investment income.
216.	Companies carrying on life assurance business.
217.	Liability of assurance companies.

Part XI

Industrial and Provident Societies

218.	Interpretation.
219.	Deduction as expenses of certain sums, etc.
220.	Disregard of profits or losses attributable to certain transactions.
221.	Payment of interest without deduction of tax.

Part XII

Special Provisions as to Pensions, Pension Schemes, Retirement Annuities and Purchased Life Annuities

Chapter I

Superannuation

222.	Exemption of superannuation funds.
223.	Contributions towards expenses of superannuation benefits.
224.	Contributions and benefits under Social Welfare Acts.
225.	Liability of certain pensions, etc., to tax.

Chapter II

Retirement and Other Benefits for Directors and Employees

226.	Interpretation.
227.	Charge to tax in respect of provision for retirement or other benefits to directors and employees of bodies corporate.
228.	Exemptions from charge under section 227.
229.	Approval of retirement benefits schemes.
230.	Aggregation and severance of schemes.
231.	Certain amounts deemed to be income.
232.	Application of section 434 to certain payments.
233.	Allowance of contributions as deduction, etc.
234.	Delivery of particulars of retirement benefits schemes, etc.

Chapter III

Retirement Annuities

235.	Retirement annuities (relief for premiums).
236.	Nature and amount of relief for qualifying premiums.
237.	Taxation of assurance companies doing annuity business.
238.	Supplementary provisions.

Chapter IV

Purchased Life Annuities

239.	Capital element in certain purchased annuities.
240.	Supplementary provisions.

Part XIII

Wear and Tear and Obsolescence

241.	Wear and tear of machinery, plant, etc.
242.	Machinery out of use during national emergency.
243.	Obsolescence.

Part XIV

Relief for certain Expenditure on Scientific Research, on Mining Development and on the Purchase of New Ships

Chapter I

Allowances for Expenditure on Scientific Research

244.	Allowance for scientific research.

Chapter II

Allowances for Capital Expenditure on Mine Development

245.	Allowance for mining development.

Chapter III

Allowances for Capital Expenditure on the Purchase of New Ships

246.	Shipping investment allowances.
247.	Provisions relating to wear and tear and obsolescence.
248.	Application of section 241 (3).
249.	Meaning of “basis period”.
250.	Withdrawal of shipping investment allowance.

Part XV

Initial Allowances for certain Capital Expenditure on Machinery and Plant and on Industrial Buildings and Structures

Chapter I

Machinery and Plant: Initial Allowances

251.	Initial allowances.
252.	Application of section 241 (2) (3) (5).
253.	Application to professions.

Chapter II

Industrial Buildings and Structures: Industrial Building Allowance

254.	Industrial building allowance.
255.	Meaning of “industrial building or structure”.
256.	Meaning of “expenditure on construction of building or structure”.
257.	Expenditure on preparing site.
258.	Commencement of sections 255 (1) (b), 255 (2), 256 (b) (c) and 257.
259.	Appeals.

Chapter III

Miscellaneous and General

260.	“Capital expenditure” under sections 251 and 254.
261.	Date on which expenditure incurred.
262.	Meaning of “basis period”.

Part XVI

Annual Allowances for Certain Capital Expenditure on Industrial Buildings and Structures, on Machinery and Plant, on Patents and on Dredging

Chapter I

Industrial Buildings and Structures: Annual Allowances and Balancing Allowances and Charges

263.	Interpretation.
264.	Annual allowances.
265.	Balancing allowances and balancing charges.
266.	Writing off of expenditure and meaning of “residue of expenditure”.
267.	Manner of making allowances and charges.
268.	Meaning of “the relevant interest”.
269.	Special provisions in regard to leases.
270.	Temporary disuse of building or structure.

Chapter II

Machinery and Plant: Balancing Allowances and Charges

Chapter III

Patents: Annual Allowances and Balancing Allowances and Charges

Chapter IV

Dredging: Initial and Annual Allowances

294.	Allowances for expenditure on dredging.

Chapter V

Miscellaneous and General

Part XVII

Relief for Expenditure on Training of Local Staff before Commencement of Trading

305.	Training of local staff before commencement of trading.

Part XVIII

Allowance for Expenditure on Production of Certain Commodities

306.	Expenditure on production of certain commodities.

Part XIX

Losses

Chapter I

Relief for Losses

Chapter II

Treatment of Capital Allowances

317.	Interpretation.
318.	Option to treat as creating or augmenting loss.
319.	Extent to which allowances to be taken into account.
320.	Effect of giving relief.
321.	Grant of relief before passing of annual Act.
322.	Application to professions, etc.

Chapter III

Payments by Companies to Associated Companies in Respect of Losses

323.	Interpretation.
324.	Treatment of deficiency payments as trading receipts and trading expenses.
325.	Meaning of “deficiency”.
326.	Adjustment of assessments in certain cases.
327.	Method of giving effect to this Chapter.
328.	Restriction of relief for losses of auxiliary companies.

Part XX

Relief to Investigators in Irish Securities

Chapter I

Stocks, Shares, and Securities of Companies other than Manufacturing Companies

329.	Relief to investors.
330.	Restriction of section 329.
331.	Shares, etc., deemed to be issued for public subscription.

Chapter II

Stocks, Shares, and Securities of Manufacturing Companies

332.	Relief to investors.

Part XXI

Charitable and other Exemptions

333.	Rents of property belonging to hospitals and other charities.
334.	Lands owned and occupied, and trades carried on, by charities.
335.	Friendly societies.
336.	Trade unions.
337.	Savings Bank.
338.	Relief for income from investments under Social Welfare Act, 1952.
339.	Repayment claims.
340.	Military and other pensions, gratuities and allowances.
341.	Exemption of Commonwealth representatives.
342.	Exemption of consular representatives.
343.	Exemption of harbour authorities.
344.	Exemption of interest on certain deposits.
345.	Exemption of interest on certain securities.
346.	Exemption of sweepstake profits.
347.	Carrying out of voluntary health schemes-deeming not to be trade.
348.	Exemption of profits of agricultural societies.
349.	Exemption of bodies established for promotion of athletic or amateur games or sports.
350.	Exemption of profits from lotteries.
351.	Exemption of sewers.
352.	Exemption of air raid protection works.
353.	Exemption of income from scholarships.
354.	Exemption of children's allowances.

Part XXII

Relief from Double Taxation

355.	Agreements relating to Northern Ireland and Great Britain.
356.	Further relief for certain double residents.
357.	Allowance of United Kingdom corporation tax as a credit against income tax.
358.	Convention with United States of America.
359.	Relief in respect of ships documented under laws of United States of America.
360.	Agreement with Canada.
361.	Agreements for relief from double taxation of income.
362.	Relief on profits from business of sea or air transport.
363.	Treatment of dividends for double taxation relief in certain cases.
364.	Determination of “reduced Irish rate” for section 363.
365.	Relief for foreign income tax in certain cases.
366.	Extension of relief in certain cases.

Part XXIII

Purchase and Sale of Securities

367.	Application of Part XXIII.
368.	Dealers in securities.
369.	Persons entitled to exemptions.
370.	Traders other then dealers in securities.

Part XXIV

Purchases of Shares by Financial Concerns and Persons Exempted from Tax and Restriction on Relief for Losses by Repayment of Tax in case of Dividends paid out of Accumulated Profits

371.	Purchases of shares by financial concerns and persons exempted from tax.
372.	Restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits.

Part XXV

Temporary Relief from Taxation

Chapter I

Profits from Trading Within Shannon Airport

373.	Definitions.
374.	Exempted trading operations.
375.	Disregard of profits or losses in the case of exempted trading operations.
376.	Transactions between associated persons.
377.	Delivery of statements, etc.
378.	Exemption from Chapter IV.
379.	Reduction of certain deductions.
380.	Dividends.
381.	Provision for annual payments and patent royalties.

Chapter II

Profits of Certain Mines

Chapter III

Profits from Coal-Mining Operations

393.	Definitions.
394.	General restriction on relief.
395.	Relief-existing coal-mining operations.
396.	Dividends.
397.	Appeals.

Chapter IV

Profits from Export of certain Goods

398.	Definitions generally.
399.	Meaning of “goods”.
400.	Ship building and repair.
401.	Goods exported by the Pigs and Bacon Commission and An Bord Bainne.
402.	Year of claim.
403.	Standard period.
404.	Basis of relief from tax.
405.	Alternative relief on total exports.
406.	Certain manufacturing services.
407.	Changes of proprietorship.
408.	Discontinuance of trade.
409.	Transfer of part of trade.
410.	Exclusions, dividends, etc.
411.	Adjustments of certain amounts.
412.	Transactions between associated persons and company succeeding to trade of another company.
413.	Production of documents and records.
414.	Appeals.

Part XXVI

Appeals

415.	Prohibition on alteration of assessment except on appeal.
416.	Appeals against assessment.
417.	Provision as to appeals.
418.	Power of Special Commissioners to order payment of tax in assessments under appeal.
419.	Agreement as to amount of tax not in dispute on an appeal against an assessment.
420.	Publication of reports of cases stated.
421.	Procedure on appeals.
422.	Power to issue precepts.
423.	Objection by inspector to schedules.
424.	Confirmation and amendment of assessments.
425.	Questions as to assessments or schedules.
426.	Summoning and examination of witnesses.
427.	Determination of liability in cases of default.
428.	Statement of case for High Court.
429.	Appeal to Circuit Court.
430.	Extension of section 428.
431.	Communication of decision of Special Commissioners.
432.	Making of claims, etc., and appeals and rehearings.

Part XXVII

Annual Payments

433.	Yearly interest, etc., payable wholly out of taxed profits.
434.	Interest, etc., not payable out of taxed profits.
435.	Annual payment payable out of dividend from which income tax is not deductible or is deductible at reduced rate.
436.	Payments subject to deduction for local rates.
437.	Disputes between tenants, landlords and others.

Part XXVIII

Special Provisions for Taxation of Settlors, etc., in respect of Settled or Transferred Income

Chapter I

Revocable Dispositions, Dispositions for Short Periods and Certain Dispositions in Favour of Children

438.	Income under revocable dispositions.
439.	Income under dispositions for short periods.
440.	Income of dispositions in favour of infants.
441.	Recovery of tax from trustee and payment to trustee of excess tax recoupment.
442.	Definitions.

Chapter II

Settlements on Children Generally

443.	Income settled on children.
444.	Irrevocable instruments.
445.	Meaning of “irrevocable instrument”.
446.	Recovery of tax from trustee and payment to trustee of excess tax recoupment.
447.	Definitions.
448.	Transfer of interests in trade to children.

Chapter III

Transfers of Income Arising from Securities

449.	Transfer of right to receive interest.

Part XXIX

Income Tax in Relation to Administration of Estates

450.	Interpretation.
451.	Limited interests in residue.
452.	Absolute interests in residue.
453.	Supplementary provisions as to absolute interests in residue.
454.	Special provisions as to certain interests in residue.
455.	Adjustments and furnishing of information.

Part XXX

Irish Dividends, etc.

Chapter I

General Provisions as to Dividends

456.	Deductions of tax from dividends.
457.	Amount of dividend from which deduction is to be made.

Chapter II

Explanation of Income Tax Deducted to be Annexed to Dividend and Interest Warrants

458.	Annexation of statement to warrants.

Part XXXI

Foreign Dividends, etc.

459.	Definitions.
460.	Dividends entrusted for payment in State.
461.	Dividends paid outside State and proceeds of sale of dividend coupons.
462.	Exemption of dividends of non-residents.

Part XXXII

Government and other Public Loans

463.	Exemption of interest on savings certificates.
464.	Issue of securities with exemption from tax.
465.	Exemption of non-interest-bearing securities.
466.	Payment of interest on Government securities without deduction of tax.
467.	Securities of Aer Lingus Teo., Aer Rianta Teo. and Aerlínte Éireann Teo.
468.	Securities of Agricultural Credit Corporation, Ltd.
469.	Conversions under Government Loans (Convertion) Act, 1951.
470.	Securities of Irish local authorities issued abroad.
471.	Securities of Electricity Supply Board and Córas Iompair Éireann.
472.	Stock of local authorities.
473.	Securities of Bord na Móna.
474.	Exemption of certain securities from tax.
475.	Funding bonds issue in respect of interest on certain debts.

Part XXXIII

Collection

476.	Collection of tax in public offices.
477.	Time for payment of tax.
478.	Issue of demand notes and receipts.
479.	Collection by means of stamps.
480.	Distraint.
481.	Collection and recovery of tax under Schedules A and B.
482.	Priority of tax over other debts.
483.	Commitment of defaulter to prison.
484.	Duty of employer as to tax payable by employees.
485.	Recovery by sheriff or county registrar.
486.	Power of Collector and authorised officers to sue.
487.	Continuance of pending proceedings.
488.	High Court proceedings.
489.	Evidence in proceedings for recovery of tax.
490.	Form of execution order in High Court or Circuit Court.
491.	Recovery of moneys due.
492.	Judgement for recovery of tax.
493.	Duration of imprisonment for non-payment of tax.
494.	Recovery of tax charged on profits not distrainable.
495.	Proceedings against a collector or his sureties.

Part XXXIV

Repayment

496.	Repayment for interest paid to banks, discount houses, etc.
497.	Rate of tax at which repayments are to be made.
498.	Limit of time for repayment claims.

Part XXXV

Penalties and Assessments

499.	Application of Part XXXV.
500.	Penalties for failure to make certain returns, etc.
501.	Penalty for fraudulently or negligently making incorrect returns, etc.
502.	Provisions supplementary to section 501.
503.	Increased penalties in the case of body of persons.
504.	Proceedings against executor or administrator.
505.	Penalty for assisting in making incorrect return, etc.
506.	Evidence of income for purposes of Part XXXV.
507.	Failure to act within required time.
508.	Recovery of penalties.
509.	Definitions.
510.	Proceedings for certain penalties.
511.	Time limit for recovery of fines and penalties.
512.	Mitigation and application of fines and penalties.
513.	Power to add penalties to assessments.
514.	Saving for criminal proceedings.
515.	Fine for obstruction of officers in execution of duties.
516.	Penalty for false statement made to obtain allowance.
517.	Time for certain summary proceedings.
518.	False evidence: punishment as for perjury.
519.	Limitation of penalties on officers employed in execution of Act.
520.	Refusal to allow deduction of tax.
521.	Admissibility of statements and documents in criminal and tax proceedings.

Part XXXVI

Sur-tax, Sur-tax on Undistributed Income of Certain Companies and Deductions of Sur-tax from Emoluments

Chapter I

Sur-Tax

522.	Charge to sur-tax.
523.	Deduction in charging sur-tax.
524.	Method of estimating income for sur-tax purposes.
525.	Sur-tax to be charged on consideration for certain restrictive covenants, etc.
526.	Assessment, collection and recovery of sur-tax.
527.	Delivery of particulars.
528.	Estimation of certain amounts.
529.	Payment of reduced amount of sur-tax pending determination of appeal.

Chapter II

Sur-Tax on Undistributed Income of Certain Companies

530.	Undistributed income of companies.
531.	Protection for companies which transmit accounts to the Special Commissioners.

Chapter III

Deduction of Sur-Tax from Emoluments

532.	Deduction of sur-tax from emoluments.

Part XXXVII

Miscellaneous

533.	Rules as to delivery of statements.
534.	Income tax assessment to be conclusive in estimation of total income.
535.	Restriction on deductions in computing profits.
536.	Execution of warrants and precepts.
537.	Effect of want of form, error, etc., on assessments, charges, warrants and other proceedings.
538.	Exemption of appraisements and valuations from stamp duty.
539.	Delivery of books and papers relating to tax.
540.	Criminal proceedings against collector.
541.	Proof that person is a commissioner or officer.
542.	Delivery, service and evidence of notices and forms.
543.	Laying of regulations before Oireachtas.
544.	Clergymen and ministers of religion: deduction.
545.	Assessment of Electricity Supply Board.
546.	Charge of tax in relation to source not producing income.
547.	Relief for certain gifts.
548.	Relief for houses occupied by clergymen and ministers of religion.
549.	Unremittable income.
550.	Interest on overdue tax.
551.	Effect on interest of reliefs given by discharge or repayment.
552.	Commencement of sections 550 and 551.
553.	Allowance to owner of mineral rights for expenses.

Part XXXVIII

Commencement, Repeals, Savings, Temporary and Transitional Provisions and Short Title

554.	Commencement and repeals.
555.	Extent to which Act is to apply to years before 1967-68.
556.	Saving for enactments not repealed.
557.	Meaning of “Collector” in sections 187, 188, 478, 480 to 482, 484 to 489, 494, 519, 542 and 550 and Schedule 2, Rule 6.
558.	Former employees of railway company.
559.	Construction of references.
560.	Continuance of officers; instruments and documents.
561.	Short title.

Acts Referred to
Adoption Act, 1952	1952, No. 25
Air-raid Precautions Act, 1939	1939, No. 21
Aliens Act, 1935	1935, No. 14
Army Pensions (Increase) Act, 1949	1949, No. 28
Army Pensions Act, 1923	1923, No. 26
Army Pensions Act, 1927	1927, No. 12
Army Pensions Act, 1932	1932, No. 24
Army Pensions Act, 1937	1937, No. 15
Army Pensions Act, 1953	1953, No. 23
Assurance Act, 1867	1867, c. 144
Assurance Companies Act, 1909	1909, c. 49
Central Fund Act, 1965	1965, No. 4
Charities Act, 1961	1961, No. 17
Companies Act, 1963	1963, No. 33
Cork City Management (Amendment) Act, 1941	1941, No. 5
Court Officers Act, 1945	1945, No. 25
Enforcement of Court Orders Act, 1926	1926, No. 18
Courts of Justice Act, 1924	1924, No. 10
Customs-free Airport Act, 1947	1947, No. 5
Dairy Produce Marketing Act, 1961	1961, No. 1
Defence Act, 1954	1954, No. 18
Intestates' Estates Act, 1890	1890, c. 29
Intestates' Estates Act, 1954	1954, No. 12
Finance (Miscellaneous Provisions) Act, 1956	1956, No. 47
Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956	1956, No. 8
Finance Act, 1894	1894, c. 30
Finance Act, 1919	1919, c. 32
Finance Act, 1920	1920, c. 18
Finance Act, 1922	1922, c. 17
Finance Act, 1923	1923, No. 21
Finance Act, 1926	1926, No. 35
Finance Act, 1928	1928, No. 11
Finance Act, 1934	1934, No. 31
Finance Act, 1940	1940, No. 14
Finance Act, 1941	1941, No. 14
Finance Act, 1948	1948, No. 12
Finance Act, 1949	1949, No. 13
Finance Act, 1950	1950, No. 18
Finance Act, 1955	1955, No. 13
Finance Act, 1958	1958, No. 25
Finance Act, 1959	1959, No. 18
Finance Act, 1960	1960, No. 19
Finance Act, 1962	1962, No. 15
Finance Act, 1965	1965, No. 22
Gaming and Lotteries Act, 1956	1956, No. 2
Government Loans (Conversion) Act, 1951	1951, No. 12
Griffith Settlement Act, 1923	1923, No. 5
Income Tax Act, 1918	1918, c. 40
Industrial and Commercial Property (Protection) Act, 1927	1927, No. 16
Insurance Act, 1936	1936, No. 45
Interpretation Act, 1937	1937, No. 38
Landed Property Improvement (Ireland) Act, 1847	1847, c. 32
Limerick City Management Act, 1934	1934, No. 35
Local Government (Dublin) Act, 1930	1930, No. 27
Local Government Act, 1946	1946, No. 24
MacSwiney (Pension) Act, 1950	1950, No. 30
Minerals Development Act, 1940	1940, No. 31
Pensions Act, 1952	1952, No. 27
Petty Sessions (Ireland) Act, 1851	1851, c. 93
Pigs and Bacon (Amendment) Act, 1961	1961, No. 14
Post Office Act, 1908	1908, c. 48
Post Office Savings Bank Act, 1861	1861, c. 14
Preferential Payments in Bankruptcy (Ireland) Act, 1889	1889, c. 60
Public Hospitals Act, 1933	1933, No. 18
Rent Restrictions Act, 1960	1960, No. 42
Social Welfare Act, 1952	1952, No. 11
Stamp Duties Management Act, 1891	1891, c. 38
Voluntary Health Insurance Act, 1957	1957, No. 1
Waterford City Management Act, 1939	1939, No. 25
Finance Act, 1964	1964, No. 15

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Number 6 of 1967.

INCOME TAX ACT, 1967.

AN ACT TO CONSOLIDATE ENACTMENTS RELATING TO INCOME TAX AND SUR-TAX, INCLUDING CERTAIN ENACTMENTS RELATING ALSO TO CORPORATION PROFITS TAX. [8th March, 1967.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

PART I

Interpretation and Preliminary

Chapter I

Interpretation

Interpretation generally.

1.—(1) In this Act, except so far as is otherwise provided or the context otherwise requires—

“annuity fund” means, where an annuity fund is not kept separately from the life assurance fund of an assurance company, such part of the life assurance fund as represents the liability of the company under its annuity contracts, as stated in its periodical returns under the Assurance Companies Act, 1909 ;

“assessable income” in the case of any income other than earned income means the amount of that income as estimated in accordance with the provisions of this Act;

“assurance company” means any persons or bodies of persons to which the Assurance Companies Act, 1909 , applies;

“body of persons” means any body politic, corporate, or collegiate, and any company, fraternity, fellowship and society of persons, whether corporate or not corporate;

“Clerk to the Special Commissioners” means the person for the time being authorised by the Special Commissioners to act as such;

“Collector” means the Collector-General appointed under section 162;

“commencement of this Act” means the 6th day of April, 1967: being the date on which, subject to and in accordance with section 554 , this Act comes into force;

“county rate” has the meaning assigned to it by section 12 of the Local Government Act, 1946 ;

“foreign life assurance fund” means any fund representing the amount of the liability of an assurance company in respect of its life assurance business with policy-holders and annuitants residing outside the State whose proposals were made to, or whose annuity contracts were granted by, the company at or through a branch or agency outside the State, and, where such a fund is not kept separately from the life assurance fund of the company, means such part of the life assurance fund as represents the liability of the company under such policies and annuity contracts; such liability being estimated in the same manner as it is estimated for the purposes of the periodical returns of the company under the Assurance Companies Act, 1909 ;

“incapacitated person” means any infant or person of unsound mind;

“inspector” means an inspector of taxes appointed under section 161;

“life assurance business” includes the business of granting annuities;

“local authority” means—

(a) the corporation of a county or other borough,

(b) the council of a county, or

“municipal rate” has the meaning assigned to it by section 46;

“the National Debt Commissioners” has the meaning assigned to it by section 31 of the Finance Act, 1940 ;

“profession” includes vocation;

“rating authority” means—

(a) the corporation of a county or other borough,

(b) the council of a county, or

“relative” includes any person of whom the person claiming a deduction had the custody and whom he maintained at his own expense while that person was under the age of sixteen years;

“repealed enactments” has the meaning assigned to it by section 554 (1);

“Special Commissioners” has the meaning assigned to it by section 156;

“standard rate of tax” means the full rate of income tax charged for the year;

“statute” has the meaning assigned to it by section 3 of the Interpretation Act, 1937 ;

“tax” means income tax or sur-tax;

“taxable income” has the meaning assigned to it by section 137 (1);

“trade” includes every trade, manufacture, adventure or concern in the nature of trade;

“year of assessment” means, with reference to any tax, the year for which such tax was imposed by any Act imposing duties of income tax.

“the year 1967-68” means the year of assessment beginning on the 6th day of April, 1967, and any corresponding expression in which two years are similarly mentioned means the year of assessment beginning on the 6th day of April in the first mentioned of those two years.

(2) References in this Act to any enactment shall, unless the context otherwise requires, be construed as references to that enactment as amended or extended by any subsequent enactment.

(3) In this Act, a reference to a Part, section or schedule is to a Part or section of, or schedule to, this Act, unless it is indicated that reference to some other enactment is intended.

(4) In this Act, a reference to a subsection, paragraph or subparagraph is to the subsection, paragraph or subparagraph of the provision (including a schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.

(5) So much of this Act as relates to corporation profits tax shall be construed together with Part V of the Finance Act, 1920 , and the enactments amending or extending that Part.

Earned income.

2.—(1) Subject to subsection (2), in this Act “earned income” means, in relation to any individual—

(a) any income arising in respect of any remuneration from any office or employment of profit held by the individual, or in respect of any pension, superannuation, or other allowance, deferred pay, or compensation for loss of office, given in respect of the past services of the individual or of the husband or parent of the individual in any office or employment of profit, or given to the individual in respect of the past services of any deceased person, whether the individual or husband or parent of the individual shall have contributed to such pension, superannuation allowance, or deferred pay, or not; and

(b) any income from any property which is attached to or forms part of the emoluments of any office or employment of profit held by the individual; and

(c) any income which is charged under Schedule B or Schedule D, and is immediately derived by the individual from the carrying on or exercise by him of his trade or profession, either as an individual, or, in the case of a partnership, as a partner personally acting therein.

In cases where the profits of a wife are deemed to be profits of the husband, any reference in this subsection to the individual includes either the husband or the wife.

(2) Without prejudice to the generality of subsection (1), in this Act, save so far as otherwise expressly provided, “earned income” includes—

(a) any income arising in respect of Civil List pensions granted under the Civil List Act, 1837, as amended by any subsequent enactment;

(b) any payments of benefits which, by virtue of section 224 (4), are deemed to be emoluments to which Chapter IV of Part V applies;

(c) in considering whether any, and if so what, relief is to be granted to an individual under section 134 or under section 138 (3), any income from patent rights (as defined in section 284) arising to an individual where the patent was granted for an invention actually devised by him, whether alone or jointly with any other person;

(d) in the case of a clergyman or minister of any religious denomination who has made such an election as respects the annual value of the house occupied by him as is provided for by section 548, any sum which falls to be treated as earned income of his by virtue of that election;

(e) any annuity made payable to an individual by the terms of an annuity contract or trust scheme for the time being approved by the Revenue Commissioners for the purposes of Chapter III of Part XII, to the extent to which such annuity is payable in return for any amount on which relief is given under section 236; and

(f) any payment which is chargeable to tax under Schedule E by virtue of section 114;

Provided that in the case of income from any such patent rights as are mentioned in paragraph (c), where any part of the rights in question or of any rights out of which they were granted has at any time belonged to any other person, so much only of the said income shall be deemed to be earned income as is not properly attributable to the rights which have belonged to that other person.

“Income Tax Acts”.

3.—In any enactment passed after this Act “the Income Tax Acts” shall mean this Act and every other enactment relating to income tax or sur-tax.

Chapter II

Preliminary

Charge; Schedules.

4.—Where any Act enacts that income tax shall be charged for any year at any rate, the tax at that rate shall, subject to the provisions of this Act, be charged for that year in respect of all property, profits, or gains respectively described or comprised in the Schedules contained in the sections of this Act enumerated below, that is to say—

Schedule A — Section 9;

Schedule B — Section 30;

Schedule C — Section 47;

Schedule D — Section 52; and

Schedule E — Section 109,

and in accordance with the provisions of this Act respectively applicable to those Schedules.

Yearly assessments.

5.—Every assessment and charge to tax shall be made for a year commencing on the 6th day of April and ending on the following 5th day of April.

Fractions of twenty shillings.

6.—The due proportion of tax shall be charged for every fractional part of twenty shillings but no tax shall be charged of a lower denomination than one penny.

Enactments in force for any year to apply to tax for succeeding year.

7.—In order to ensure the collection in due time of tax which may be imposed for any year commencing on the 6th day of April, all such provisions contained in this Act, or in any other Act relating to tax, as were in force on the preceding day, shall have full force and effect with respect to tax which may be so imposed, in the same manner as if the said tax had been actually imposed by Act of the Oireachtas and the said provisions had been applied thereto by the Act.

Charge and deduction of tax not charged or deducted before passing of annual Act.

8.—(1) Where in any year of assessment any half-yearly or quarterly payments have been made on account of any interest, dividends or other annual profits or gains, previously to the passing of the Act imposing the tax for that year, and tax has not been charged thereon or deducted therefrom, or has not been charged thereon or deducted therefrom at the rate ultimately imposed for the said year, the amount not so charged or deducted shall be charged under Case IV of Schedule D in respect of those payments, as profits or gains not charged by virtue of any other Schedule, and the agents entrusted with the payment of the interest, dividends or other annual profits or gains shall furnish to the Revenue Commissioners a list containing the names and addresses of the persons to whom payments have been made and the amount of those payments, upon a requisition made by the Commissioners in that behalf.

(2) Any person liable to pay any rent, interest or annuity, or to make any other annual payment, shall be authorised to make any deduction on account of tax for any year of assessment which he has failed to make previously to the passing of the Act imposing the tax for that year, or to make up any deficiency in any such deduction which has been so made, on the occasion of the next payment of the rent, interest or annuity, or making of the other annual payment after the passing of the Act so imposing the tax, in addition to any other deduction which he may be by law authorised to make, and shall also be entitled, if there is no future payment from which the deduction may be made, to recover the sum which might have been deducted as if it were a debt due from the person as against whom the deduction could originally have been made if the Act imposing tax for the year had been in force.

PART II

Schedules A and B

Chapter I

Schedule A

Schedule A.

9.—The Schedule referred to in this Act as Schedule A is as follows—

Schedule A

1. Tax under this Schedule shall be charged in respect of the property in all lands, tenements and hereditaments in the State, for every twenty shillings of the annual value thereof.

2. Paragraph 1 does not apply to lands, tenements and hereditaments the property in which, by virtue of section 53, is charged under Schedule D, Case I.

Estimation of Annual Value

Annual value for Schedule A.

10.—(1) This section applies, save as otherwise provided in this Part, to the annual value of all property with reference to which tax under Schedule A is to be charged.

(2) The annual value of all property shall, except in the cases mentioned in the subsequent provisions of this section, be five-fourths of the rateable valuation of the property for the time being.

(3) The annual value of lands and of farmhouses and farm buildings occupied with lands for the purpose of farming such lands shall be the rateable valuation thereof for the time being.

(4) The annual value of all property situate in the County Borough of Waterford shall be the rateable valuation of the property for the time being.

(5) Where the annual value with reference to which tax is to be charged on any property in pursuance of subsection (2) includes (when computed in accordance with that subsection) a fraction of one pound which is not five shillings or a multiple of five shillings, such fraction of one pound may—

(a) where it exceeds ten shillings, be reduced, for the purpose of such computation of such annual value, to the next lower multiple of five shillings, or

(b) where it exceeds five shillings but is less than ten shillings, be reduced, for the purpose aforesaid, to five shillings, or

(6) Where, in pursuance of subsection (2), tax has been charged for any year of assessment on property with reference to an annual value computed in accordance with that subsection, and the valuation of the property in force in that year of assessment for the purposes of the county rate or the municipal rate is subsequently reduced, and the reduction becomes operative for the purposes of the county rate or the municipal rate not more than three years after the end of that year of assessment, the Revenue Commissioners, if they are of opinion that relief in respect of the said tax so charged for that year of assessment should be granted with reference to an annual value computed at five-fourths of the said valuation as so reduced, may grant such relief by repayment or otherwise.

Owner-occupied private residence.

11.—(1) Where an individual claims in the manner prescribed by this Act and proves that he is the owner of any property to which, but for this section, section 10 (2) would apply and that he occupies it exclusively for the purposes of his own residence, then—

(a) section 10 (2) shall not apply in relation to the property,

(b) the annual value of the property under Schedule A shall, subject to the provisions of this Part, be its rateable valuation for the time being, and

(c) if tax has been charged in respect of the relevant property otherwise than in accordance with this section, any tax overpaid shall be repaid.

(2) Property shall be deemed to be occupied exclusively for the purposes of his own residence by an individual referred to in subsection (1) where it is mainly occupied by him for such purposes and no part thereof is occupied for the purposes of a trade but a part thereof is occupied for the purposes of a profession.

Newly-built houses.

12.—For the purpose of ascertaining, in the case of a house or building rated for the first time, the annual value with reference to which tax is, in pursuance of this Part, to be charged under Schedule A, the valuation with reference to which the house or building is so rated shall be deemed to have been in force for the year of assessment during which the house or building first becomes occupied, but subject to any relief which may be necessary in respect of that part (if any) of the said year during which the house or building was not occupied.

Assessment by reference to annual rent.

13.—(1) In the event of an appeal by a person who considers himself aggrieved by any assessment under Schedule A, if it is proved to the satisfaction of the Special Commissioners by whom the appeal is heard, or the Judge by whom the appeal is reheard, that the annual value on which the assessment is based exceeds the annual rent at which the property in respect of which the assessment is made is worth to be let from year to year, relief shall be given by reducing the assessment and charging the tax on the amount on which it would have been charged if that rent had been adopted as the basis of the assessment instead of such annual value.

(2) If such annual rent at which the property is worth to be let from year to year exceeds the actual rent payable yearly by the tenant or occupier, the landlord or immediate lessor shall be assessed and charged, under Schedule A, on the amount of such actual rent only, and the tenant or occupier shall be assessed and charged under Schedule A on the difference.

(3) Where an inspector or such other officer as the Revenue Commissioners may appoint in that behalf is of opinion that the annual value with reference to which an assessment of tax is made on any property in pursuance of section 10 (2) exceeds the annual rent at which the property is worth to be let from year to year, he may, notwithstanding that there has been no appeal against the assessment and notwithstanding section 416 (6), at any time before the end of the year of assessment grant relief by reducing the assessment and charging the tax on the amount on which it would, in his opinion, have been charged if it had been assessed with reference to the said annual rent instead of the said annual value, and the assessment as so reduced shall be final and conclusive for all purposes.

(4) Where a person who receives rent in respect of any property which is exempt from being rated to the county rate, or which is assessable to the municipal rate on a proportion only of the rateable valuation, is liable to be rated in respect of that rent to the extent of one-half the poundage of any county rate or is liable to be assessed in respect of that rent to the municipal rate on a proportion only of the rateable valuation, the tax under Schedule A shall be assessed and charged upon him upon the full amount of that rent.

Persons Chargeable

Persons chargeable.

14.—Tax under Schedule A shall be charged upon the landlord or immediate lessor of the property, but may, if it appears to the inspector to be necessary or proper, be charged upon the person rated to the county rate or the municipal rate in respect of the property.

Separate assessments under Schedule A or Schedule B in certain cases.

15.—(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), or

(b) during the whole of any year of assessment, jointly as aforesaid,

is entitled to any estate or interest in property in respect of which he would be assessable separately or with the other person or persons under Schedule A or Schedule B, if he, or he and the other person or persons, were entitled to that estate or interest for the whole of the year, he shall be separately assessed under Schedule A or under Schedule B, as the case may be, in respect of his estate or interest, or his part of the estate or interest, in the property for the part or whole of the year on the appropriate proportion of the annual or assessable value.

(2) The circumstances in which subsection (1) is to apply to a person being entitled to an estate or interest in property jointly with another person or persons are that he has that estate or interest as a coparcener, joint tenant, tenant in common or tenant of lands or tenements in partnership.

(3) Where a person to whom this section applies is liable to bear part of an annual payment reserved out of or charged on the relevant property, that part shall, for the purposes of section 433, be regarded as being payable as a reservation out of or charge on the estate or interest, or the part of the estate or interest, in respect of which he is assessed under this section.

(4) In this section—

“annual payment” means any payment from which, apart from any insufficiency of profits or gains of the person making it, tax is deductible under section 433.

Diplomatic representatives.

16.—Tax to be charged in respect of any house or tenement occupied by the accredited diplomatic representative of any foreign State shall be charged on and paid by the landlord or person immediately entitled to the rent of the house or tenement.

Mortgagees in possession.

17.—Any mortgagee in possession of the property mortgaged shall be liable to the like deduction as any landlord, and in any settlement of accounts between such mortgagee and the mortgagor, tax payable on interest due in respect of the mortgage shall be allowed as money received on account of interest.

Right of persons by whom tax is paid to recoupment in certain cases.

18.—(1) A tenant occupier of any property who pays the tax shall, subject to section 93 (2), be entitled to deduct and retain in respect of the rent payable to the landlord for the time being (all sums allowed by virtue of this Act being first deducted), an amount representing the rate or rates of tax in force during the period through which the said rent was accruing due for every twenty shillings thereof, the said deduction to be made out of the first payment thereafter made on account of rent, and any receiver on behalf of the State or other person receiving the rent shall allow the deduction on receipt of the residue of the rent:

Provided that a tenant or occupier shall not be entitled to deduct out of the rent any greater sum than the amount of tax charged in respect of such property as aforesaid, and actually paid by him.

(2) A tenant who pays the tax shall be acquitted and discharged of so much money as is represented by the deduction, as if that sum had been actually paid as rent.

(3) Where any property is subject to the payment of any annual sum, whether payable half-yearly or at any shorter or more distant period, a landlord or owner who has been charged to tax under this Schedule or from whom tax is deductible under this subsection or subsection (1), shall subject to section 93 (2), be entitled on making such payment to deduct and retain thereout so much of the said tax as represents the rate or rates of income tax in force during the period through which the said payment was accruing due, for every twenty shillings thereof (the just proportion of any sums allowed by virtue of this Act being first deducted), and every receiver on behalf of the State, and every person to whom such payment is made shall, on receipt of the residue thereof, and without any charge for so doing, allow the deduction:

Provided that no such person as aforesaid who is also a tenant or the occupier of the property shall be entitled to deduct out of any rent any greater sum than the amount of tax charged in respect of any such property and actually paid by him.

In this subsection “annual sum” means any yearly interest, annuity, rent, rentcharge, fee farm rent or other annual payment reserved or charged upon any property.

(4) The landlord or owner shall be acquitted and discharged of so much money as is represented by the deductions as if that sum had been actually paid.

(5) Where under the Landed Property Improvement (Ireland) Act, 1847, or any Acts amending that Act, an advance of public money to promote the improvement of lands has been made by way of loan, and the repayment thereof has been secured by a rentcharge upon the lands to be paid for a term of years, by which the principal sum advanced will eventually be repaid with interest, the person paying any such rentcharge may deduct and retain thereout so much of the tax under Schedule A charged in respect of the lands, as represents the tax on one-third, and no more, of the amount payable at the rate or rates of tax in force during the period through which the payment was accruing due; and the collectors and receivers of such rentcharges shall allow such deduction upon receipt of the residue of such rentcharge then due.

(6) A tenant occupier for the time being of any property who has been required to pay, and has paid, any sums charged in respect thereof under Schedule A which, under the provisions of this Act, ought to have been or ought to be paid by a former tenant or occupier, may deduct and retain out of any subsequent payment of rent to his landlord, the sum, or any part thereof, which ought to have been or ought to be so paid.

(7) As between the owner and a mortgagee of his property or any person having a charge thereon or entitled to any ground rent, rentcharge, annuity, or other annual sum payable thereout, the owner's right of deduction under this section in respect of tax shall not be affected by any relief afforded under section 23.

Occupier.

19.—Every person having the use of any property shall be deemed to be the occupier thereof.

Deductions and Allowances

Allowance in case of ecclesiastical or collegiate body.

20.—(1) An allowance shall be made under Schedule A in respect of the amount expended during the year preceding the year of assessment on repairs of any collegiate church or chapel, or chancel of a church, or of any college or hall in any university of the State, by any ecclesiastical or collegiate body, or by any person bound to repair the same.

(2) The allowances granted under this section may be granted to the body or person therein described in one sum, either by deduction from the assessment, if any, on such body or person, or by repayment.

Allowance for drainage and other rates and expenditure on sea walls.

21.—(1) An allowance shall be made under Schedule A in respect of—

(a) the amount charged on property by a public rate or assessment in respect of draining, fencing, or embanking;

(b) the amount expended by the landlord or owner of lands on an average of the twenty-one preceding years, in the making or repairing of sea walls or other embankments necessary for the preservation or protection of the lands against the encroachment or overflowing of the sea or any tidal river, although the sums expended may not have been charged on the lands by a public rate or assessment.

(2) The allowances granted under this section shall (unless the payments to which they relate, or any part thereof, be made by a tenant) be made from the assessment on the property concerned.

Procedure and time-limits for claims under preceding provisions.

22.—(1) The person entitled to any of the foregoing allowances which have not been made by way of deduction or abatement from the assessment and which may be made by repayment, may claim the allowance at any time within six years after the expiration of the year of assessment, by notice in writing to the inspector.

(2) The inspector on proof that the claimant is entitled to the allowance shall certify the particulars and amount thereof to the Special Commissioners, who shall issue an order for repayment.

Repairs allowance.

23.—(1) Where tax is charged upon annual value estimated otherwise than by relation to profits, the following provisions shall have effect:—

(a) in the case of an assessment on any lands or on any farmhouse or farm buildings occupied together with any lands for the purpose of farming such lands, the amount of the assessment shall, for the purposes of collection, be reduced by a sum equal to one-eighth part thereof; and

(b) in the case of an assessment upon any premises being industrial buildings or structures within the meaning of section 255, the amount of the assessment shall, for the purposes of collection, be reduced—

(i) where the owner is occupier or chargeable as landlord, or where a tenant is occupier and the landlord undertook to bear the cost of repairs, by a sum equal to one-third of that amount; and

(ii) where a tenant is occupier and undertook to bear the cost of repairs, by such a sum, not exceeding one-third of that amount, as may be necessary to reduce it to the amount of rent payable by him.

(2) Where the amount of the assessment in a case to which subsection (1) (a) applies is more than one-eighth, or in a case to which subsection (1) (b) applies is more than one-third below the rent, after deducting from such rent any outgoing which should by law be deducted in making the assessment, the reductions referred to in subsection (1) shall not be made.

Allowance for maintenance, repairs, insurance and management.

24.—(1) If the owner of any property the assessment on which is reduced under section 23 for the purposes of collection shows that the cost to him of maintenance, repairs, insurance, and management, according to the average of the preceding five years, has exceeded, in a case to which section 23 (1) (a) applies, one-eighth part of the annual value of the land as adopted under Schedule A and, in a case to which section 23 (1) (b) applies, one-third part of that value, he shall be entitled in addition to any reduction of the assessment for the purposes of collection, on making a claim for the purpose, to repayment of the amount of the tax on the excess:

Provided that—

(a) no repayment of tax shall be made under this subsection in respect of the cost of maintenance, repairs, insurance or management, if or to such extent as that cost has been otherwise allowed as a deduction in computing income for the purposes of income tax; and

(b) a claimant shall not be entitled to relief under this subsection in respect of any income the tax on which he is entitled to charge against any other person, or to deduct, retain or satisfy out of any payment which he is liable to make to any other person.

(2) In comparing, for the purpose of this section, the cost of maintenance, repairs, insurance, and management of any land or houses with the annual value of the land or houses, the total cost of the maintenance, repairs, insurance and management on any land managed as one estate, or of any houses on any such land, shall be compared with the total annual value of the land or houses, as the case may be.

(3) The provisions of Schedule 4 and of paragraph IX of Schedule 18 shall apply to claims for repayment under this section:

Provided that if the owner of any land or house makes and delivers to the inspector a declaration as to the cost to him of maintenance, repairs, insurance, and management, and the inspector is satisfied as to the correctness of the declaration, the amount of the allowance to which the owner is entitled under this section shall be certified by the inspector, and repayment shall thereupon be made in accordance with his certificate.

(4) In computing the five-year average for the purposes of this section, the year shall be taken to be the year ending on the 31st day of March, or such other date as may be adopted by the owner of the land or houses with the consent of the inspector, and the five preceding years shall be taken to be those preceding the commencement of the year for which the tax in respect of which a claim for repayment is made is charged.

(5) For the purposes of this section “maintenance” shall include the replacement of farmhouses, farm buildings, cottages, fences, and other works where the replacement is necessary to maintain the existing rent.

Maintenance relief for small properties.

25.—Where the Revenue Commissioners are satisfied, in respect of any house or building of which the annual value ascertained in accordance with section 10 does not exceed six pounds five shillings, that—

(a) such house or building is bona fide let to a tenant, and

(b) the cost of the repairs, maintenance, and insurance of such house or building is borne by the landlord or immediate lessor, and

(c) the annual income derived by the said landlord or immediate lessor from such house or building, taking one year with another, after making allowances for the cost to him of the said repairs, maintenance, and insurance is less than the annual value ascertained as aforesaid of such house or building,

the Revenue Commissioners may grant such relief, by repayment or otherwise, as is just.

Loss by flood or tempest.

26.—(1) Where land has been demised at a reserved rent, without fine or other sum paid or contracted for in lieu of a reserved rent, and loss has been sustained on the growing crops or stock on the lands, or the lands or any part of them have been rendered incapable of cultivation for any year, by reason of flood or tempest, the inspector, on proof to him that the owner has, in consideration of any such loss, allowed or agreed to allow, to the tenant an abatement of the whole or any part of the rent reserved or payable for any year of the term, may in like proportion make an abatement in the assessment under Schedule A for the year for which the abatement of rent has been made, and discharge therefrom the corresponding proportion of tax.

(2) Where any such loss is sustained on lands in the occupation of the owner, the inspector may, on proof of the loss, make the like abatement and discharge of tax under Schedule A as might have been made if the land had been demised to a tenant, and the owner had made such abatement of rent proportionate to the loss sustained as the inspector considers would or ought to have been made in respect of such loss.

Universities, colleges, hospitals, schools and almshouses.

27.—The following further allowances shall be made under Schedule A—

(a) the amount of the tax charged on any college or hall in any university of the State, in respect of the public buildings and offices belonging to the college or hall, so far as not occupied by any individual member thereof or by any person paying rent for the same:

(b) the amount expended on repairs of the public buildings and offices of any such college or hall, and of the gardens, walks, and grounds for recreation, repaired and maintained by the funds of the college or hall:

(c) the amount of the tax charged on any hospital, public school, or almshouse, in respect of the public buildings, offices, and premises belonging thereto, and so far as not occupied by any individual officer or the master thereof whose total annual income, however arising, estimated in accordance with this Act, amounts to £150 or more, or by a person paying rent for the same:

(d) the amount expended on repairs of any such hospital, public school, or almshouse, and of the offices belonging thereto, and of the gardens, walks, and grounds used for the sustenance or recreation of the hospitallers, scholars and almsmen respectively, which are repaired and maintained by the funds of the hospital, public school or almshouse:

(e) the amount of the tax charged on any building being the property of any literary or scientific institution, and used solely for the purposes of that institution, in which no payment is made or demanded for any instruction there afforded by lectures or otherwise, and so far as not occupied by an officer of the institution or by any person paying rent for the same.

Allowance for rates paid by landlord.

28.—In assessing tax chargeable under Schedule A on the landlord or immediate lessor—

(a) if the amount or annual value, on which the assessment is made, is not less than the annual rent reserved or payable to him for the property in respect of which the assessment is made, an allowance or abatement shall be made in respect of the amount of the county rate or the proportion applicable to the relief of the poor of the municipal rate paid or borne by him for the same property in the preceding year; and

(b) if the amount or annual value on which the assessment is made is less than the said rent, an allowance or abatement shall be made of the sum by which the amount of the county rate or of the proportion applicable to the relief of the poor of the municipal rate, added to the sum on which the assessment is made, exceeds that rent.

Repayment of tax in respect of lost rent.

29.—(1) If any landlord or immediate lessor of any property charged to tax under Schedule A has paid the same and proves to the satisfaction of the Special Commissioners, that the rent, or any part thereof, due or payable to him in respect of that property, for the period for which that tax was charged, has been wholly and irrecoverably lost by reason of—

(a) the bankruptcy, insolvency, or absconding of the tenant or occupier by whom such rent was payable; or

(b) the fraudulent assignment or removal of his goods by the said tenant or occupier; or

he shall be entitled to be repaid such proportion of the said tax as he shall have paid in respect of the rent so lost; and the Special Commissioners shall issue an order for repayment, in like manner as in other cases of repayment.

(2) Any such claim for repayment shall be made within one year after the expiration of the year of assessment.

Chapter II

Schedule B

Schedule B.

30.—The Schedule referred to in this Act as Schedule B is as follows:—

1. Tax under this Schedule shall be charged in respect of the occupation of all lands, tenements and hereditaments in the State chargeable to tax under Schedule A, except—

(a) any dwelling-house, or the domestic offices thereunto belonging, unless occupied, by virtue of one and the same demise, together with a farm of lands, or with a farm of tithes, for the purpose of farming the same; or

(b) any warehouse or other building occupied for the purpose of carrying on a trade or profession.

2. Tax under this Schedule shall be charged for every twenty shillings of the assessable value of the lands, tenements or hereditaments concerned.

In this Act “assessable value” means in relation to tax under this Schedule an amount equal to the annual value of the lands, tenements and hereditaments, or, in any case in which it is proved to the satisfaction of the Special Commissioners that any person occupying any lands and assessed to tax in respect thereof is not occupying those lands for the purpose of husbandry only, or mainly for those purposes, and the Minister for Agriculture and Fisheries on a reference to him by the Revenue Commissioners does not certify that the use of the lands by the occupier thereof for a purpose other than the purpose of husbandry is unreasonable, an amount equal to one-third of the annual value.

3. The tax to be charged under this Schedule shall be in addition to the tax to be charged under Schedule A.

Annual value for Schedule B.

31.—(1) The annual value of lands for the purposes of Schedule B shall, subject to subsection (2), be the rateable valuation of the lands for the time being.

(2) The said annual value shall be taken to be—

(a) the judicial rent fixed under the Land Law (Ireland) Acts or any of them; or

(b) the annual interest or payment payable to the Irish Land Commission in lieu of rent under the Land Purchase Acts or any of them; or

in any case in which it is shown that the said judicial rent, annual interest or payment, or purchase annuity, as the case may be, is less than the rateable valuation.

(3) Section 13 (1) shall apply in relation to an assessment under Schedule B as it applies to Schedule A.

(4) In this section “purchase annuity” means the first or original annuity payable before any redemption or statutory reduction.

Persons chargeable.

32.—(1) Tax under Schedule B shall be charged upon the occupier of the property.

(2) Every person having the use of any property shall be deemed to be the occupier thereof.

Assessment of certain profits derived from the keeping of a stallion.

33.—Where a person who is the occupier of land in respect of the occupation of which he is assessed under Schedule B is also the owner or part owner of a stallion which is ordinarily kept on such land, profits derived by such person from fees received or receivable for the service by such stallion on such land of mares owned by other persons shall be deemed, for the purposes of this Act, to arise from the occupation of such land.

Husbandry: election to be charged under Schedule D.

34.—(1) Any person occupying lands for the purposes of husbandry only may elect to be assessed and charged under Schedule D, and in accordance with the provisions applicable thereto, instead of under this Schedule.

(2) The election of any such person shall be signified by notice in writing delivered personally or sent by post in a registered letter to the inspector within two months after the commencement of the year of assessment; and from and after the receipt of the notice the charge upon him for that year shall be under Schedule D, and the profits or gains arising to him from the occupation of the lands shall for all purposes be deemed to be profits or gains of a trade chargeable under that Schedule.

Husbandry: profits falling short of assessable value.

35.—If a person who occupies, either as owner or otherwise, any lands for the purposes of husbandry only, shows within a period of one year after the end of any year of assessment to the satisfaction of the Special Commissioners that the profits or gains arising from that occupation during that year fell short of the assessable value of the lands under this Schedule, the income arising from that occupation shall be taken at the actual amount of those profits or gains, and if the whole of the tax has been paid, the amount overpaid shall be certified and repaid in like manner as tax is repaid under section 22 (2).

Woodlands.

36.—(1) Any person occupying woodlands, who proves to the satisfaction of the Special Commissioners that those woodlands are managed by him on a commercial basis and with a view to the realisation of profits, may elect to be assessed and charged to tax in respect of those woodlands under Schedule D instead of under this Schedule in the same manner as a person occupying lands for the purposes of husbandry only, and section 34 shall apply accordingly.

(2) Any such election shall extend to all woodlands so managed on the same estate:

Provided that woodlands shall be treated for this purpose as being woodlands on a separate estate, if the person occupying those woodlands gives notice to the Special Commissioners within ten years after the time when they are planted or replanted.

(3) The election shall have effect, not only as respects the year of assessment, but also as respects all future years of assessment, so long as the woodlands are occupied by the person making the election.

Assessment of profits from occupation of land under Schedule D in certain other cases.

37.—(1) Where, for any year of assessment, a person to whom this section applies is chargeable to tax under Schedule B in respect of the occupation for the purposes of husbandry of any lands—

(a) the person shall when required to do so by a notice in writing served on him by an inspector prepare and deliver to the inspector, within the time limited by the notice, a statement of the profits or gains on which he would have been chargeable for the year of assessment if he had made an election in relation to the lands under section 34;

(b) where the person fails to deliver the statement, or where the Revenue Commissioners are not satisfied with the statement delivered by the person, the Revenue Commissioners may serve on the person a notice in writing or notices in writing requiring him to do any of the following things, that is to say—

(i) to deliver to an inspector copies of such accounts (including balance sheets) relating to the occupation of the lands as may be specified or described in the notice within such period as may be therein specified, including, where the accounts have been audited, a copy of the auditor's certificate,

(ii) to make available, within such time as may be specified in the notice, for inspection by an inspector or by any officer authorised by the Revenue Commissioners, all such books, accounts and documents in his possession or power as may be specified or described in the notice, being books, accounts and documents which contain information as to transactions related to the occupation of the lands;

(c) the inspector or other officer may take copies of, or extracts from, any books, accounts or documents made available for his inspection under the foregoing paragraph;

(d) where the person fails to do anything which he is required to do by a notice under paragraph (b), this Act shall apply as if he had duly made, under section 34, an election in relation to the lands by notice delivered immediately after the commencement of the year of assessment;

(e) where the person has delivered copies of accounts relating to the occupation of the lands and the Revenue Commissioners are of opinion that the accounts overstate the profits or gains arising from such occupation, the Revenue Commissioners may certify accordingly;

(f) where the Revenue Commissioners have given a certificate under the foregoing paragraph—

(i) this Act shall, subject to the next subparagraph, apply as if the person had duly made, under section 34, an election in relation to the lands by notice delivered immediately after the commencement of the year of assessment,

(ii) an appeal against the certificate shall, within twenty-one days after notification to the person of the giving of the certificate, lie to the Special Commissioners in like manner as an appeal would lie against an assessment to income tax and the provisions of this Act relating to appeals shall have effect accordingly.

(2) (a) This section applies to—

(i) a person carrying on in the year of assessment a trade or profession,

(ii) a person who, in the year of assessment, is a married person whose wife or husband carries on in that year a trade or profession, or

(iii) a person who, in the year of assessment, is a director of a company carrying on in that year a trade and is either the beneficial owner of, or able, either directly or through the medium of other companies or by any other means, to control, more than 25 per cent. of the ordinary share capital of the company,

subject to the proviso that a person who, apart from this proviso, would, by virtue of subparagraph (ii), be a person to whom this section applies shall not be such a person in a case in which the wife is not to be treated for income tax purposes as living with her husband.

(b) For the purposes of subparagraph (iii) of paragraph (a), ordinary share capital which is owned or controlled as referred to in the subparagraph by a person being the wife, the husband or an infant child of a director, or by the trustee of a trust for the benefit of a person or persons being or including any such person or such director, shall be deemed to be owned or controlled by such director and not by any other person.

“company” means a company within the meaning of the Companies Act, 1963 ;

“director” includes a person holding any office or employment under a company;

“ordinary share capital” means all the issued capital (by whatever name called) of a company, other than capital the holders whereof have a right to a dividend at a fixed rate or a rate fluctuating in accordance with the rate of income tax, but have no other right to share in the profits of the company.

Relief under Schedule B in case of loss by flood or tempest.

38.—Section 26, relating to relief in the case of losses caused by flood or tempest, shall apply in the case of Schedule B as in the case of Schedule A, and as respects land the proprietor of which is shown to the satisfaction of the Special Commissioners to be an incapacitated person, or to be otherwise incapable of consenting to an abatement of the rent, an abatement and discharge of tax under Schedule B may be allowed by the Special Commissioners on proof to them of the loss in respect of the abatement of rent which in their opinion ought to have been made.

Chapter III

General

Revenue Commissioners to be furnished with copies of rates.

39.—(1) For the purpose of assessing tax chargeable under Schedules A and B, the secretary, clerk, or person acting as such, to a rating authority shall, when required by the Revenue Commissioners, transmit to them, at the head office of the Revenue Commissioners in Dublin, true copies of the last county rate or municipal rate made by the authority for its rating area or any part thereof.

(2) The Revenue Commissioners shall pay to any such person the expenses of making all such copies, not exceeding the rate of two shillings and sixpence for every one hundred ratings.

(3) If any such person neglects to transmit such copies, after being required to do so by the Revenue Commissioners, he shall, for every such neglect, forfeit the sum of £50.

Production of valuations to inspector.

40.—(1) Every person shall, at the request of any inspector, or other officer acting in the execution of this Act, produce to him any survey or valuation on which the rates for any rating area, or part thereof, are assessed or made, or any rate or assessment made under any Act relating to the county rate or the municipal rate, which is in his custody or possession and permit the inspector or other officer to inspect the same and to take copies thereof, or extracts therefrom, without any payment.

(2) Any such person who, on such request, refuses to produce any survey, valuation, rate, or assessment which is in his custody or possession, or to permit the inspection thereof, or the taking of such copies thereof or extracts therefrom as the inspector or other officer may think fit, shall, for every such refusal, forfeit the sum of £50.

Power of Revenue Commissioners to direct revaluation.

41.—(1) If in any case it appears to the Revenue Commissioners that any rateable valuation which is for the time being in force is not correct (having reference to the principles according to which the valuation ought by law to have been made) with respect to all or any of the property included therein, they may direct the Commissioner of Valuation to make or cause to be made, for the purposes of tax, a revaluation of the property in accordance with the principles prescribed by law, and the Commissioner of Valuation shall, with all convenient speed, make the revaluation or cause it to be made accordingly, and shall sign and transmit the revaluation to the Revenue Commissioners.

(2) Tax chargeable under Schedules A and B shall, after any such revaluation, be assessed and charged in accordance therewith.

(3) A person assessed in accordance with any such revaluation may, if aggrieved thereby, appeal against the assessment on the ground that the revaluation is incorrect, and the Special Commissioners by whom the appeal is heard, or the Judge by whom the appeal is reheard, may alter the revaluation and the assessment, and make such an order with reference thereto, as they or he may think fit.

Unoccupied property.

42.—Tax under Schedules A and B shall be charged on all property, whether occupied at the time of assessment or not, but if any house is or becomes unoccupied for the year or for part of the year of assessment, the tax shall not be levied thereon during the period while it is so unoccupied, and the inspector, on proof of the period during which the house was unoccupied, shall upon appeal discharge the tax in respect of that period.

Savings with respect to actions of ejectment.

43.—An action of ejectment for non-payment of rent shall not be defeated on the ground that the person liable to pay the rent is entitled under this Act to a deduction which would reduce the amount due by him below a year's rent.

Relief to persons prevented from using their land.

44.—Where the Revenue Commissioners are satisfied that a person entitled to the ownership and occupation of any land was in any year of assessment prevented by trespass, intimidation, or the disturbed state of the neighbourhood from using and occupying such land, they shall have power to cause to be given such relief as is just and reasonable in those circumstances in respect of any tax payable with reference to such land under Schedule A or Schedule B for such year of assessment.

Relief to farming co-operative societies and farming trustees.

45.—Where the Revenue Commissioners are satisfied that any land is in the ownership and occupation of a co-operative society formed before the 6th day of April, 1927, for the acquisition of land to be divided amongst its members or of a body of trustees created before the 6th day of April, 1927, for the acquisition of land to Ibe divided amongst their cestuis-qui-trustent and the Revenue Commissioners are also satisfied that, having regard to the taxable income of the several individuals beneficially interested in such land, the collection of the tax assessed with respect to such land under Schedule A or Schedule B for any year would impose undue hardship on such individuals the Revenue Commissioners shall have power to cause to be given such relief as is just and reasonable in respect of such tax.

Definition of “the municipal rate”.

46.—In this Part “the municipal rate” means any rate which is—

(a) the rate leviable by the Right Honourable the Lord Mayor, Aldermen and Burgesses of Dublin under section 63 of the Local Government (Dublin) Act, 1930 , or

(b) the rate leviable by the Corporation of Dún Laoghaire under section 63 of the said Local Government (Dublin) Act, 1930 , or

(d) the rate leviable under section 24 of the Waterford City Management Act, 1939 , or

(e) the rate leviable under section 16 of the Cork City Management (Amendment) Act, 1941 , or

(f) the rate leviable under section 18 of the Local Government Act, 1946 .

PART III

Schedule C and Principal Provisions Relating Thereto

Schedule C.

47.—The Schedule referred to in this Act as Schedule C is as follows—

Schedule C

1. Tax under this Schedule shall be charged in respect of all profits arising from public revenue dividends payable in the State in any year of assessment.

2. Where a banker or any other person in the State, by means of coupons received from another person or otherwise on his behalf, obtains payment of any foreign public revenue dividends, tax under this Schedule shall be charged in respect of the dividends.

3. Where a banker in the State sells or otherwise realises coupons for any foreign public revenue dividends and pays over the proceeds of such realisation to or carries such proceeds to the account of any person, tax under this Schedule shall be charged in respect of the proceeds of the realisation.

4. Where a dealer in coupons in the State purchases coupons for any foreign public revenue dividends otherwise than from a banker or another dealer in coupons, tax under this Schedule shall be charged in respect of the price paid on the purchase.

5. Nothing in paragraph 1 shall apply to any annuities which are not of a public nature.

6. The tax under this Schedule shall be charged for every twenty shillings of the annual amount of the profits, dividends, proceeds of realisation or price paid on purchase charged.

Charge and payment.

48.—(1) Tax under Schedule C shall be charged by the commissioners designated for that purpose by this Act, and shall be paid on behalf of the persons entitled to the profits, dividends, proceeds of realisation or price paid on purchase which are the subject of the tax—

(a) in the case of tax charged under paragraph 1 of that Schedule, by the persons and bodies of persons respectively entrusted with payment;

(b) in the case of tax charged under paragraph 2, 3 or 4 of that Schedule, by the banker or other person or by the banker or by the dealer in coupons, as the case may be.

(2) The provisions of Schedule 1 shall have effect in relation to the assessment, charge and payment of tax under Schedule C.

Stocks of State and of foreign diplomats.

49.—(1) No tax shall be chargeable in respect of the stock, dividends or interest transferred to accounts in the books of the Bank of Ireland in the name of the Minister for Finance in pursuance of any statute, but the Bank of Ireland shall transmit to the Special Commissioners an account of the total amount thereof.

(2) No tax shall be chargeable in respect of the stock, dividends or interest belonging to the State in whatever name they may stand in the books of the Bank of Ireland.

(3) No tax shall be chargeable in respect of the stock, dividends or interest of an accredited diplomatic representative of any foreign State resident in the State:

Provided that if the same stand in the name of a trustee, the property therein of any such representative shall be proved by the trustee to the Special Commissioners.

Securities of foreign territories.

50.—(1) No tax shall be chargeable in respect of the dividends on any securities of any territory outside the State which are payable in the State, where it is proved to the satisfaction of the Revenue Commissioners that the person owning the securities and entitled to the dividends is not resident in the State; but, save as provided by this Act, no allowance shall be given or repayment be made in respect of the tax on the dividends on the securities of any such territory which are payable in the State:

Provided that where the securities of any such territory are held under any trust, and the person who is the beneficiary in possession under the trust is the sole beneficiary in possession and can, by means either of the revocation of the trust or of the exercise of any powers under the trust, call upon the trustees at any time to transfer the securities to him absolutely free from any trust, that person shall, for the purposes of this section, be deemed to be the person owning the securities.

(2) Relief under this section may be given by the Revenue Commissioners either by way of allowance or repayment on a claim being made to them for the purpose.

(3) Any person who is aggrieved by the decision of the Revenue Commissioners on any question as to residence arising under this section may, by notice in writing to that effect given to the Revenue Commissioners within two months from the date on which notice of the decision is given to him, make an application to have his claim for relief heard and determined by the Special Commissioners.

(4) Where an application is made under subsection (3), the Special Commissioners shall hear and determine the claim in like manner as an appeal made to them against an assessment and all the provisions of this Act relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

Definitions.

51.—In this Part—

“dividends”, except in the phrase “stock, dividends or interest”, means any interest, annuities, dividends or shares of annuities;

“public revenue”, except where the context otherwise requires, includes the public revenue of any Government whatsoever and the revenue of any public authority or institution in any country outside the State;

“public revenue dividends” means dividends payable out of any public revenue;

“foreign public revenue dividends” means dividends payable elsewhere than in the State (whether they are or are not also payable in the State) out of any public revenue other than the public revenue of the State;

“banker”includes a person acting as a banker;

“coupons” and “coupons for any foreign public revenue dividends” include warrants for or bills of exchange purporting to be drawn or made in payment of any foreign public revenue dividends.

PART IV

Schedule D

Chapter I

Charge to Tax and General

Schedule D.

52.—The Schedule referred to in this Act as Schedule D is as follows—

Schedule D

1. Tax under this Schedule shall be charged in respect of—

(a) the annual profits or gains arising or accruing—

(i) to any person residing in the State from any kind of property whatever, whether situate in the State or elsewhere; and

(ii) to any person residing in the State from any trade, profession or employment, whether carried on in the State or elsewhere; and

(iii) to any person, whether a citizen of Ireland or not, although not resident in the State, from any property whatever in the State, or from any trade, profession or employment exercised within the State; and

(iv) to any person, whether a citizen of Ireland or not, although not resident in the State, from the sale of any goods, wares, or merchandise, manufactured or partly manufactured by such person in the State.

(b) all interest of money, annuities and other annual profits or gains not charged under Schedule A, Schedule B, Schedule C or Schedule E, and not specially exempted from tax,

in each case for every twenty shillings of the annual amount of the profits or gains:

Provided that profits or gains arising or accruing to any person from an office, employment or pension shall not, by virtue of this paragraph, be chargeable to tax under this Schedule unless they are chargeable to tax under Case III of this Schedule.

2. The provisions of paragraph 1 are without prejudice to any other provision of this Act directing tax to be charged under this Schedule, and the tax so directed to be charged shall be charged accordingly.

The Cases.

53.—(1) Tax under Schedule D shall be charged under the following Cases:

Case I.—Tax in respect of—

(a) any trade not contained in any other Schedule;

(b) the property in the following lands, tenements and hereditaments—

(i) quarries of stone, slate, limestone or chalk, or quarries or pits of sand, gravel or clay;

(ii) mines of coal, tin, lead, copper, pyrites, iron and other mines;

(iii) ironworks, gasworks, salt springs or works, alum mines or works, waterworks, streams of water, canals, inland navigations, docks, drains or levels, fishings, rights of markets and fairs, tolls, railways and other ways, bridges, ferries and other concerns of the like nature having profits from or arising out of any lands, tenements or hereditaments;

Case II.—Tax in respect of any profession not contained in any other Schedule;

Case III.—Tax in respect of—

(a) any interest of money, whether yearly or otherwise, or any annuity, or other annual payment, whether such payment is payable within or outside the State, either as a charge on any property of the person paying the same by virtue of any deed or will or otherwise, or as a reservation out of it, or as a personal debt or obligation by virtue of any contract, or whether the same is received and payable half-yearly or at any shorter or more distant periods;

(b) all discounts;

(c) profits on securities bearing interest payable out of the public revenue other than such as are charged under Schedule C;

(d) interest on any securities issued or deemed within the meaning of section 466 to be issued, under the authority of the Minister for Finance, in cases where such interest is paid without deduction of tax;

(e) income arising from securities outside the State except such income as is charged under Schedule C;

(f) income arising from possessions outside the State;

Case IV.—Tax in respect of any annual profits or gains not falling under any of the foregoing Cases, and not charged by virtue of any other Schedule;

and subject to and in accordance with the provisions of this Act applicable to the said Cases respectively.

(2) The provisions of subsection (1) are without prejudice to any other provision of this Act directing tax to be charged under one or other of the said Cases, and the tax so directed to be charged shall be charged accordingly.

Market gardening.

54.—(1) In this section “market garden land” means land in the State occupied as a nursery or garden for the sale of the produce (other than land used for the growth of hops) and “market gardening” shall be construed accordingly.

(2) Notwithstanding anything in Schedule B, or in the provisions applicable thereto, market gardening shall, for all the purposes of this Act in relation to the person by whom it is carried on, be treated as a trade, and

(a) the profits or gains thereof shall be charged under Case I of Schedule D, and

(b) income tax shall not be charged under Schedule B in respect of the occupation of market garden land,

but where land is market garden land for part only of the year of assessment, tax shall be charged under Schedule B on that land for that year on so much of the assessable value of that land as bears to that value the same proportion as the remainder of that year bears to one year.

(3) Where part of property valued under the Valuation Acts as a unit is market garden land—

(a) the annual value of the market garden land, for the purposes of section 65 shall be arrived at by apportionment of the rateable valuation of the property,

(b) the assessable value for the purposes of any assessment under Schedule B in respect of the remainder of the property shall be arrived at by apportionment of the amount which would have been the assessable value of the property, for the purposes of Schedule B, if no part thereof had been market garden land, and

(c) any apportionment required by this subsection shall be made by the inspector according to the best of his knowledge and judgment.

(4) An apportionment made under subsection (3) may be amended by the Special Commissioners, or by the Circuit Court, on the hearing, or the rehearing, of an appeal against an assessment made on the basis of the apportionment, but, on the hearing, or the rehearing, of any such appeal, a certificate of the Commissioner of Valuation tendered by either party to the appeal and certifying, as regards property valued under the Valuation Acts as a unit, the amount of the rateable valuation of the property attributable to any part of the property, shall be conclusive as to the amount so attributable.

Interest, etc., paid without deduction of tax under Schedule C.

55.—(1) Where any interest, dividends, annuities or shares of annuities to which this section applies or the profits attached to any such interest, dividends or annuities fall to be charged under the provisions applicable to Schedule C but are in fact not assessed for any year under that Schedule, tax upon such interest, dividends, annuities, shares of annuities or profits may be charged and assessed on and shall be payable by the person entitled to receive such interest, dividends, or other annual payments for that year under the appropriate Case of Schedule D.

(2) This section applies to all interest, dividends, annuities and shares of annuities payable out of any public revenue of the State or out of any public revenue of Great Britain or of Northern Ireland or of Great Britain and Northern Ireland.

Tax on quarries, mines and other concerns.

56.—(1) The provisions of Chapter II shall apply in relation to the concerns which, by virtue of section 53, are chargeable under Case I (b) of Schedule D, subject to the provisions of this section.

(2) Tax under Case I of Schedule D shall be assessed and charged on the person or body of persons carrying on such concern, or on the agents or other officers who have the direction or management of the concern or receive the profits thereof.

(3) (a) The computation in respect of any mine carried on by a company of adventurers shall be made and stated jointly in one sum, but any adventurer may be assessed and charged separately if he makes a declaration of his proportion or share in the concern for that purpose.

(b) An adventurer so separately assessed and charged may set off against his profits from one or more of such concerns the amount of his loss sustained in any other such concern as certified by the inspector.

(c) In any such case one assessment and charge only shall be made on the balance of profit and loss, and shall be made in the assessment district where the adventurer is chargeable to the greatest amount.

(4) No deduction or set-off (other than the deduction granted by section 67 (2)) shall be allowed in estimating the profits on account of, or by reference to the annual value of any lands tenements or hereditaments occupied and used in connection with the concern and not separately assessed and charged under Schedule A in accordance with subsection (6).

(5) Part XXI shall be be construed and have effect as if any income tax chargeable under Schedule D in respect of any of the concerns to which subsection (1) relates were chargeable under Schedule A.

(6) In any case in which it appears to the Revenue Commissioners to be necessary or proper, the property in any of the concerns specified in section 53 as chargeable under Case I (b) may be assessed and charged under Schedule A instead of under Schedule D.

Save as aforesaid, tax under Schedule A shall not be charged in respect of the property in any such concern.

Chapter II

Cases I and II

Extent of charge.

57.—The tax under Cases I and II of Schedule D shall be charged without any other deduction than is by this Act allowed.

Basis of assessment.

58.—(1) Subject to the provisions of this section and sections 59 and 60, tax shall be charged under Case I or Case II of Schedule D on the full amount of the profits or gains of the year preceding the year of assessment.

(2) Where the trade or profession has been set up and commenced within the year of assessment, the computation of the profits or gains chargeable under Case I or Case II of Schedule D shall be made either on the full amount of the profits or gains arising in the year of assessment or according to the average of such period, not being greater than one year, as the case may require and as may be directed by the inspector.

(3) Any person chargeable with income tax in respect of the profits or gains of any trade or profession which has been set up and commenced within the year preceding the year of assessment shall be charged on the full amount of the profits or gains for one year from the time of such setting up and commencement, but shall be entitled, on giving notice in writing to the inspector within twelve months after the end of the year of assessment, to be charged to income tax on the amount of the profits or gains of the year of assessment.

(4) Any person chargeable with income tax in respect of the profits or gains of any trade or profession which has been set up and commenced within the year next before the year preceding the year of assessment shall be entitled, on giving notice in writing to the inspector within twelve months after the end of the year of assessment, to have the assessment reduced by the amount (if any) by which the aggregate amount of the respective assessments for the year of assessment and the year preceding that year exceed the total amount of the profits or gains of those two years.

(5) (a) Where in any year of assessment a trade or profession is permanently discontinued then, notwithstanding anything contained in this Act—

(i) the person charged or chargeable with tax in respect thereof shall be charged for that year on the amount of the profits or gains of the period beginning on the 6th day of April in that year and ending on the date of the discontinuance, subject to any deduction or set-off to which he may be entitled under section 308 or 309, and, if he has been charged otherwise than in accordance with this paragraph, any tax overpaid shall be repaid, or an additional assessment may be made upon him, as the case may require;

(ii) if the profits or gains of the year ending on the 5th day of April in the year preceding the year of assessment in which the discontinuance occurs exceed the amount on which the person has been charged for that preceding year, or would have been charged if no such deduction or set-off as aforesaid had been allowed, an additional assessment may be made upon him, so that he shall be charged for that preceding year on the amount of the profits or gains of the said year ending on the 5th day of April, subject to any such deduction or set-off as aforesaid to which he may be entitled.

(b) In the case of the death of a person who, if he had not died, would, under this subsection, 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.

(6) The reference in subsection (5) to the discontinuance of a trade or profession shall be construed as referring to a discontinuance occurring by reason of the death while carrying on such trade or profession of the person carrying on the same as well as to a discontinuance occurring in the lifetime of such person, and for the purposes of subsection (5) such death shall be deemed to cause a discontinuance and such discontinuance shall be deemed to take place on the day of such death.

Changes of proprietorship.

59.—(1) If at any time after the 5th day of April, 1965, a trade or profession which immediately before that time was carried on by an individual person (hereafter in this subsection 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 or profession 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 subsection referred to as the successor) succeeds to a trade or profession 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 or profession 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 section, 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.

Period of computation of profits.

60.—(1) Where, in the case of any trade or profession or of the occupation of any land occupied solely or mainly for the purpose of husbandry or of the occupation of any woodlands, it has been customary to make up accounts:—

(a) if only one account was made up to a date within the year preceding the year of assessment, and that account was for a period of one year, the profits or gains of the year ending on that date shall be taken to be the profits or gains of the year preceding the year of assessment;

(b) if no account for a period of one year was made up to a date within the year preceding the year of assessment, or if more accounts than one were made up to dates within that year, the Revenue Commissioners shall decide what period of twelve months shall be deemed to be the year the profits or gains of which are to be taken to be the profits or gains of the year preceding the year of assessment.

(2) Where the Revenue Commissioners have given a decision under subsection (1) (b) and it appears to them that in consequence thereof the tax for the last preceding year of assessment in respect of the profits or gains from the same source should be computed on the profits or gains of a corresponding period, they may give directions to that effect and an assessment or additional assessment or repayment of tax shall be made accordingly.

(3) An appeal shall lie against any assessment or additional assessment or in respect of any repayment of tax under subsection (2), and any such appeal shall be made to the Special Commissioners who shall consider the circumstances and grant such relief, if any, as is just, and their determination shall be final and conclusive, unless the person assessed requires that his appeal shall be reheard under section 429, or unless under this Act a case is required to be stated for the opinion of the High Court.

(4) In the case of the death of a person who, if he had not died, would, under the provisions of this section, 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.

General Rule as to deductions.

61.—Subject to the provisions of this Act, in computing the amount of the profits or gains to be charged, no sum shall be deducted in respect of—

(a) any disbursements or expenses, not being money wholly and exclusively laid out or expended for the purposes of the trade or profession;

(b) any disbursements or expenses of maintenance of the parties, their families or establishments or any sums expended for any other domestic or private purposes distinct from the purposes of such trade or profession;

(c) the rent or annual value of any dwelling-house or domestic offices or any part thereof, except such part thereof as is used for the purposes of the trade or profession:

Provided that where any such part is so used, the sum so deducted shall be such as may be determined by the inspector and shall not, unless in any particular case the inspector is of opinion that, having regard to all the circumstances, some greater sum ought to be deducted, exceed two thirds of the annual value or of the rent bona fide paid for the said dwelling-house or offices;

(d) any sum expended for repairs of premises occupied, or for the supply, repairs, or alterations of any implements, utensils, or articles employed for the purposes of the trade or profession, beyond the sum actually expended for those purposes;

(e) any loss not connected with or arising out of the trade or profession;

(f) any capital withdrawn from, or any sum employed or intended to be employed as capital in such trade or profession;

(g) any capital employed in improvements of premises occupied for the purposes of the trade or profession;

(h) any interest which might have been made if any such sums as aforesaid had been laid out at interest;

(i) any debts, except bad debts proved to be such to the satisfaction of the inspector and doubtful debts to the extent that they are respectively estimated to be bad. In the case of the bankruptcy or insolvency of a debtor, the amount which may reasonably be expected to be received on any such debt shall be deemed to be the value thereof;

(j) any average loss beyond the actual amount of loss after adjustment;

(k) any sum recoverable under an insurance or contract of indemnity;

(l) any annual interest, or any annuity, or other annual payment payable out of the profits or gains;

(m) any royalty or other sum paid in respect of the user of a patent.

Trading stock of discontinued trade.

62.—(1) In computing the profits or gains of a trade which has been discontinued, any trading stock belonging to the trade at the discontinuance thereof shall be valued in accordance with the following provisions:

(a) in the case of any such trading stock—

(i) which is sold, or is transferred for valuable consideration, to a person who carries on or intends to carry on a trade in the State, and

(ii) the cost of which to such person on such sale or transfer may be deducted by him as an expense in computing for any purpose of this Act the profits or gains of the said trade carried on or intended to be carried on by him,

the value of such trading stock shall be taken to be the price paid therefor on such sale or the value of the consideration given therefor on such transfer, as the case may be;

(b) in the case of any other such trading stock, the value thereof shall be taken to be the amount which it would have realised if it had been sold in the open market at the discontinuance of the trade.

(2) In this section—

“trading stock” means property of any description, whether real or personal, which is either—

(a) property such as is sold in the ordinary course of the trade in relation to which the expression is used or would be so sold if it were mature or if its manufacture, preparation, or construction were complete, or

(b) materials such as are used in the manufacture, preparation, or construction of property such as is sold in the ordinary course of the said trade,

references to a trade having been discontinued or to the discontinuance of a trade shall be construed as not referring to or including any case where such trade was carried on by a single individual and is discontinued by reason of his death (whether such trade is or is not continued by another person after such death) but shall be construed as referring to and including every other case where a trade has been discontinued or is, by virtue of any of the provisions of this Act, treated as having been discontinued for the purpose of computing tax.

Deductions in relation to the establishment or alteration of superannuation schemes.

63.—Where a superannuation scheme is established in connection with a trade or undertaking or a superannuation scheme so established is altered and the person by whom the trade or undertaking is carried on makes a payment in respect of expenses (including a payment in respect of professional fees, but not including a payment by way of contribution towards the cost of providing the benefits payable under the scheme) in connection with such establishment or alteration, then, if the scheme or, as the case may be, the altered scheme is—

(a) operated through a fund approved, whether in whole or in part, by the Revenue Commissioners for the purposes of section 222,

(b) approved, whether in whole or in part, by the Revenue Commissioners under section 229, or

the amount of the payment shall be allowed to be deducted in the computation, for the purposes of assessment to income tax, of the profits or gains of the trade or undertaking as an expense incurred when the payment is made:

Provided that where, in a case falling within paragraph (a) or (b), a part only of the relevant fund or scheme is approved as therein mentioned, the deduction shall be restricted to so much of the payment as is referable to that part.

Deduction for corporation, profits tax.

64.—(1) Where any company has paid corporation profits tax in respect of any accounting period ending on or after the 1st day of April, 1966, the amount so paid shall, in computing for purposes of income tax the profits or gains of the company, be allowed to be deducted as an expense incurred in that accounting period:

Provided that there shall be disregarded for the purposes of this subsection so much of the corporation profits tax paid in respect of any such accounting period which began before the 1st day of April, 1966, as is referable to profits apportioned under section 21 (2) of the Finance Act, 1966 , to the part of the accounting period before that day.

(2) Where any company has received repayment of any amount previously paid by it by way of corporation profits tax, the amount repaid shall be treated as profit for the year in which the repayment is received but this subsection shall not apply save where there has been an allowance of the deduction of an amount as an expense in computing profits or gains for purposes of income tax.

(3) Where in any year of assessment the profits or gains from which a deduction may be made under this section come into computation, but owing to the time at which the amount of the corporation profits tax became ascertained it was impracticable to give effect to the deduction when assessing income tax, the amount by which that tax would have been reduced if effect had been given to the deduction shall be deducted from the amount payable for corporation profits tax or, if there is no corporation profits tax, shall be repaid to the company.

Exclusion of annual value of property.

65.—(1) The computation of tax shall be made exclusive of the annual value of property occupied for the purpose of the trade or profession and separately assessed and charged under Schedule A.

(2) Where any lands, tenements, hereditaments or other premises of whatsoever description used for the purpose of any trade or profession are situate outside the State, no deduction or set-off shall, in estimating the amount of annual profits or gains arising or accruing from that trade or profession, in any manner be allowed on account or in respect of the annual value of those premises.

(3) Where, in estimating the amount of annual profits or gains arising or accruing from any trade or profession and chargeable to tax under this Schedule, any sum is deducted on account of the annual value of the lands, tenements and hereditaments used for the purpose of such trade or profession, the sum so deducted shall not exceed the amount of the assessment of the lands, tenements and hereditaments for the purpose of tax under Schedule A as reduced for the purpose of collection.

(4) (a) Subsection (3) shall not apply in the case of an industrial building or structure within the meaning of section 255 which is not a building or structure to which section 264 applies.

(b) Where, in the case of premises valued under the Valuation Acts as a unit, a part is, and a part is not, a building or structure to which section 264 applies, the annual value of each part shall be arrived at by apportionment of the rateable valuation of the premises, and section 54 (3) (c) and section 54 (4) shall apply to any such apportionment as they apply to an apportionment required by section 54 (3).

Power to omit Schedule A assessments in certain cases.

66.—(1) In this section—

“basis period” means, in relation to a year of assessment, the period on the profits or gains of which income tax for that year falls to be finally computed under Case I of Schedule D in respect of the trade in question or, where, by virtue of this Act, the profits or gains of any other period are to be taken to be the profits or gains of the said period, that other period;

“company” means any body corporate;

“short lease” has the same meaning as in Chapter VI of Part IV;

“trade” means a trade within Case I of Schedule D;

“unit of valuation” means any lands, tenements or hereditaments valued under the Valuation Acts as a unit.

(2) (a) Subject as hereafter provided, this section applies to any unit of valuation in respect of which a company is assessable under Schedule A being a unit of valuation of which no part fails, at any time during the year of assessment, to satisfy one or other of the following conditions, that is to say:

(i) that it is wholly occupied by the company assessable as aforesaid for the purposes of a trade, or

(ii) that it, with or without other premises, is subject to a short lease granted by the company not being such a lease as is referred to in section 86.

(b) This section does not apply to a unit of valuation—

(i) of which the whole or a part is occupied for the purposes of a trade which consists wholly or partly of exempted trading operations within the meaning of Chapter I of Part XXV, or

(ii) in respect of which any rent is payable under a short lease by the company assessable under Schedule A in respect thereof.

(c) For the purposes of paragraph (a) (ii), the currency of a lease shall be determined as it would be determined for the purposes of section 81 (4).

(3) Notwithstanding anything in this Act, no assessment under Schedule A need be made for any year of assessment in respect of a unit of valuation to which this section applies; and where, for any year of assessment, an assessment under Schedule A is not made, the annual value of the unit of valuation shall not, save as is hereafter provided, be taken into account for any purpose of this Act in relation to the company assessable under Schedule A in respect thereof.

(4) Where—

(a) the whole or a part of a unit of valuation to which this section applies (hereafter in this subsection referred to as the unit) is occupied at any time during a year of assessment (hereafter in this subsection referred to as the relevant year) for the purposes of a trade carried on by the company concerned, and

(b) an assessment under Schedule A is not made for the relevant year in respect of the unit,

the following provisions shall apply to the computation for the purpose of assessment of the amount of the profits or gains of the trade for the basis period for the relevant year but not to the computation for the purpose of relief of the amount of a loss sustained in the trade in that period:

(i) the profits or gains of the basis period shall first be computed as if an assessment under Schedule A in respect of the unit had been made for every year of assessment falling wholly or partly within the basis period for which such an assessment was not made;

(ii) the amount computed in accordance with paragraph (i) shall then be adjusted as if, in addition to the trading receipts taken into account in arriving at it, the company had received in the basis period an amount of trading receipts equal to the sum specified in the next following paragraph and the amount computed in accordance with paragraph, (i) as so adjusted shall for all purposes of this Act be taken to be the amount of the profits or gains of the basis period;

(iii) the sum referred to in paragraph (ii) is a sum equal to the amount of the assessment under Schedule A which might have been made in respect of the unit for the relevant year or, in a case in which section 23 would have applied, the net amount, as reduced for the purposes of collection, of the assessment which might have been made as aforesaid, provided that in a case in which the whole of the unit is not occupied for the purposes of the trade throughout the relevant year, the sum hereinbefore specified shall be appropriately reduced.

(5) (a) Where—

(i) the assessment under Schedule A for any year of assessment (hereafter in this subsection referred to as the relevant year) in respect of a unit of valuation to which this section applies (hereafter in this subsection referred to as the unit) would, if made, fall to be reduced for the purposes of collection under section 23,

(ii) an assessment under Schedule A is not made for that year in respect of the unit,

(iii) a period (hereafter in this subsection referred to as the unassessed period) being the whole or a part of that year falls within a period (hereafter in this subsection referred to as the accounting period) for which the accounts of the company concerned are made up, and

(iv) the whole or a part of the unit is occupied at any time during the unassessed period for the purposes of a trade carried on by the company,

there shall be allowed in the computation of the amount of a loss sustained in the trade in the accounting period such deduction, if any, as is authorised by paragraph (b).

(b) (i) In a case in which the unassessed period coincides with the relevant year and the whole of the unit was throughout that period occupied for the purposes of the trade, the deduction under paragraph (a) shall be equal to the amount, if any, by which the net amount of the assessment under Schedule A which might have been made for the relevant year in respect of the unit falls short of the sum which, if the said assessment had been made, would have fallen to be deducted, under section 65 in respect of the unassessed period on account of the annual value of the unit.

(ii) In any other case, the deduction under paragraph (a) shall be the same proportion of the deduction which would have been allowable thereunder, if sub-paragraph (i) of this paragraph applied, as the proportion which the sum which in the circumstances of the case would, if an assessment under Schedule A in respect of the unit had been made for the relevant year, have fallen to be deducted, under section 65, in respect of the unassessed period on account of the annual value of the unit bears to the sum which would have fallen to be deducted under that section if the circumstances were as stated in the said subparagraph (i).

(6) Where in consequence of the operation of the foregoing provisions of this section the amount of the profits or gains of a trade on which a company is chargeable to tax under Case I of Schedule D is, for any year of assessment, greater than it would otherwise have been, only so much of the profits or gains on which the company is so chargeable as does not exceed the amount on which it would have been so chargeable if this section had not been enacted and only so much of the tax payable by the company as is attributable to that part of the profits or gains shall be taken into account in determining the amount of any relief to which the company is entitled for the year of assessment under section 220 or Chapter II, III or IV of Part XXV.

(7) The circumstance that in accordance with this section an assessment under Schedule A is not made in respect of any unit of valuation shall not have the effect that a sum, which would otherwise be treated in accordance with Chapter III of Part V, as a perquisite of an office or employment, is not so treated.

(8) (a) A company may by notice in writing delivered to the inspector within the time limited by paragraph (b) elect that this section shall not have effect in relation to it and, where a company has so elected, no unit of valuation in respect of which it is assessable under Schedule A shall be a unit of valuation to which this section applies.

(b) A notice under paragraph (a) shall be delivered—

(i) in the case of a company in existence at the commencement of this Act (other than a company incorporated on a date more than six months before such commencement) within six months from the date on which the company was incorporated,

(ii) in the case of a company not in existence at the commencement of this Act, within six months from the date on which the company is incorporated.

(c) A company may at any time withdraw a notice given by it under paragraph (a) or under section 10 (8) of the Finance Act, 1964 , and thereupon the notice shall cease to have effect as from the beginning of the next following year of assessment.

Allowance for industrial premises.

67.—(1) In this section “premises” means an industrial building or structure within the meaning of section 255 which is not a building or structure to which section 264 applies.

(2) In estimating the amount of annual profits or gains arising or accruing from any trade the profits of which are chargeable to tax under Case I of Schedule D, there shall, notwithstanding anything in section 65, be allowed to be deducted, as expenses incurred in any year, on account of any premises owned by the person carrying on such trade and occupied by him for the purposes of the said trade, and situate outside the State, a deduction equal to one-third of the annual value of those premises.

(3) In estimating the profits for any year of any of the concerns which, by virtue of section 53, are charged under Case I (b) of Schedule D, there shall be allowed to be deducted, as expenses incurred in any year, on account of any premises owned by the person carrying on the concern and occupied by him for the purposes of such concern, a deduction equal to one-third of the annual value of those premises.

(4) Annual value for the purposes of this section shall be estimated according to the principles governing the estimation of the annual value for the purposes of Schedule A.

Statement of profits.

68.—(1) Every statement of profits to be charged under Schedule D which is made by any person—

(i) on his own account; or

(ii) on account of some other person for whom he is chargeable, or who is chargeable in his name,

shall include every source of income so chargeable.

(2) Where a person delivers a statement of profits as aforesaid on behalf of some other person, or of a body of persons, the statement shall be delivered in the assessment district where the person delivering the statement or the body of persons respectively would be assessable and chargeable if acting on his or their own behalf.

Chapter III

Trades and Professions Carried on in Partnership

Interpretation.

69.—(1) In this Chapter—

“annual payment” means any payment from which, apart from any insufficiency of profits or gains of the person making it, tax is deductible under section 433;

“balancing charge” means a balancing charge under Part XVI;

“capital allowance” means any allowance, other than an allowance falling to be made in computing profits or gains, under section 241 or Part XIV, XV, XVI or XVII;

“partnership trade” means a trade which is carried on by two or more persons in partnership;

“precedent partner” means in relation to a partnership the partner who, being resident in the State—

(a) is first named in the partnership agreement, or

(b) if there is no agreement, is named singly or with precedence to the other partners in the usual name of the firm, or

and any reference to precedent partner shall, in a case in which no partner is resident in the State, be construed as a reference to the agent, manager, or factor of the firm resident in the State;

“relevant period” means in relation to a partnership trade a continuous period the whole or part of which is after the 5th day of April, 1965—

(a) beginning at a time when either the trade was not carried on immediately before it by two or more persons in partnership or none of the persons then carrying on the trade in partnership was one of the persons who immediately before it carried on the trade in partnership, and

(b) continuing so long as (but only so long as) there has not occurred a time when either the trade is not carried on immediately after it by two or more persons in partnership or none of the persons then carrying on the trade in partnership is one of the persons who immediately after it carry on the trade in partnership,

subject to the proviso that, in the case of any such period which, apart from this proviso, would have begun before the 6th day of April, 1965, “the relevant period” shall be taken as having begun at the time, or at the last of two or more times, at which, a change having occurred in the partnership of persons then engaged in carrying on the trade, the persons so engaged immediately after the time fell to be treated for the purposes of income tax as having set up or commenced the trade at that time.

(2) In relation to a case in which a partnership trade is from time to time during a relevant period carried on by two or more different partnerships of persons, any reference in this Chapter to the partnership shall, unless the context otherwise requires, be construed as including a reference to any partnership of persons by whom the trade has been carried on since the beginning of the relevant period and any reference to a partner shall be construed correspondingly.

(3) The provisions of this Chapter shall, with any necessary modifications, apply in relation to professions, as they apply in relation to trades.

Power to require return as to sources of partnership income and amounts derived therefrom.

70.—(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, 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);

(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 this Act 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 344 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 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.

(4) In proceedings for recovery of a penalty incurred under section 500 or 501 in relation to a return referred to in the preceding provisions of this section—

(a) a certificate signed by an inspector which certifies that he has examined his relevant records and that it appears from them that a stated notice was duly given to the defendant on a stated day shall be evidence until the contrary is proved that that person received that notice in the ordinary course,

(b) a certificate signed by an inspector which certifies that he has examined his relevant records and that it appears from them that, during a stated period, a stated return was not received from the defendant shall be evidence until the contrary is proved that the defendant did not, during that period, deliver that return,

(c) a certificate certifying as provided for in paragraph (a) or (b) and purporting to be signed by an inspector may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by such inspector.

(5) In this section “prescribed” means prescribed by the Revenue Commissioners.

Separate assessment of partners.

71.—(1) In the case of a partnership trade this Act shall, subject to the provisions of this Chapter, 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 Chapter 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), 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 60 and 107 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), 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 73, be determined by the inspector 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 shares to which the partners are entitled in the basis period for a year of assessment do not exhaust the profits of the trade carried on by the partnership for that period, an assessment shall be made under Case IV of Schedule D on the precedent partner in respect of the unexhausted portion of the profits and the precedent partner shall, if and when such balance falls to be paid to a person entitled thereto, be entitled to deduct from such balance any amounts of tax which have been assessed on and paid by him and he shall be acquitted and discharged of any such amounts.

(5) This section shall not cause any income which, apart from this section, is not earned income to become earned income.

Capital allowances and balancing charges in partnership cases.

72.—(1) The provisions of this Act 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), 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 this Act 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 this Act had provided that those profits should be charged as specified in subsection (2).

(4) Where at the end of the relevant period a person or a partnership of persons succeeds to a partnership trade and any property which, immediately before the succession takes place, was in use for the purposes of the partnership trade and, without being sold is, immediately after the succession takes place, in use for the purposes of the trade carried on by the successor or successors, section 300 (1) shall apply as it applies where, by virtue of any of the provisions of section 59, a trade is to be treated as discontinued.

(5) Where for a partnership trade 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 subsections (2) and (3), 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.

(6) (a) In relation to any partnership trade the total amount of all joint allowances for any year of assessment and the total amount of all joint charges for that year shall, subject to section 73, be determined by the inspector.

(b) Where after a determination has been made under paragraph (a) the inspector becomes aware of any facts or events by reference to which the determination is in his opinion incorrect, he may from time to time and as often as appears to him to be necessary make a revised determination, and any such revised determination shall supersede any earlier determination and any such additional assessments or repayments of tax shall be made as may be necessary.

(7) (a) Subject to the provisions of paragraph (b), for any year of assessment the partners' appropriate shares of a joint allowance, or of a joint charge, shall be arrived at by apportioning the full amount thereof between the partners on the same basis as a like amount of profits arising in the trading period from the partnership trade, and accruing from day to day over that period, would fall to be apportioned in accordance with the terms of the partnership if any salary, interest on capital or other sum to which any partner was entitled without regard to the amount of the profits arising from the partnership trade had already been provided for.

In this paragraph “trading period” means, where the relevant period begins or ends during the year of assessment for which the joint allowance or joint charge is computed, the part of that year of assessment which falls within the relevant period or, in any other case, that year of assessment.

(b) If for any year of assessment all the partners (any deceased partner being represented by his legal representatives) allege, by notice in writing signed by them and sent to the inspector within twelve months after the end of the year of assessment, that hardship is caused to one or more partners by the apportionment of a joint allowance or joint charge on the basis set out in paragraph (a), the Revenue Commissioners may, on being satisfied that hardship has been caused, give such relief as in their opinion is just by making a new apportionment of the joint allowance or joint charge, and any such new apportionment shall for all the purposes of this Act have effect as if it were an apportionment made under paragraph (a) and such additional assessments or repayments of tax shall be made as may be necessary.

(8) For any year of assessment the aggregate amount of all capital allowances brought forward shall, for the purpose of making the assessments on the partners, be deemed to be a joint allowance for that year and subsection (7) shall apply accordingly.

In this subsection a capital allowance brought forward means—

(a) any capital allowance or part of a capital allowance falling to be made to the partnership for the year 1964-65 or any earlier year of assessment which might, if Part VIII of the Finance Act, 1965 , had not been enacted, have been carried forward and made as a deduction in charging the profits or gains of the partnership trade for the year 1965-66, and

(b) any capital allowance or part of a capital allowance falling to be made to a partner for 1965-66 or a later year of assessment which, but for this subsection, might have been carried forward and made as a deduction in charging the profits or gains of the several trade of the partner for a year of assessment subsequent to that for which the capital allowance was computed.

(9) In relation to a partnership trade—

(a) any claim for a joint allowance for any year of assessment shall be made by the precedent partner as if it were a claim for a capital allowance falling to be made to him and shall be included in the return delivered by him, under section 70, in relation to that year of assessment, and

(b) any claim for a joint allowance shall be deemed to be a claim by every partner for a capital allowance falling to be made to him being a capital allowance equal to his appropriate share of that joint allowance.

Modification of provisions as to appeals.

73.—(1) The inspector may give notice to the partnership concerned of any determination made by him under section 71 (3) or 72 (6) by delivering a statement in writing thereof to the precedent partner for the time being of the partnership and all the provisions of this Act 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 section 72 (6) 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 on a claim under section 307.

(3) Where on any appeal such as is mentioned in subsection (2) any question arises as to an apportionment falling to be made under section 71 (2) or section 72 (7) 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.

Provision as to charges under section 288.

74.—(1) Where for any year of assessment a charge under section 288 (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 this Act had provided that those profits or gains should be charged as specified in section 72 (2), 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 288 equal to his appropriate share of the joint charge.

(2) For the purposes of subsection (1) 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 72 is to be arrived at by virtue of subsection (7) of that section.

Chapter IV

Case III

Income chargeable under Case III.

75.—(1) Save as is hereinafter otherwise provided, income or profits chargeable under Case III of Schedule D shall, for all the purposes of ascertaining liability to income tax, be deemed to issue from a single source, and the provisions of section 77 shall apply accordingly.

(2) Subsection (1) shall not apply to the following income or profits and such income or profits shall be deemed to arise from separate sources respectively, that is to say:—

(i) income or profits chargeable under section 215.

(ii) profits chargeable under section 78, and

(iii) income from securities and possessions in any place outside the State tax on which under subsections (2) and (3) of section 76 is required to be computed by reference to the amount of the income received in the State.

Foreign securities and possessions.

76.—(1) Subject to the provisions of this section and section 77, tax chargeable under Case III of Schedule D in respect of income arising from securities and possessions in any place outside the State shall be computed on the full amount thereof arising in the year preceding the year of assessment whether the income has been or will be received in the State or not, subject, in the case of income not received in the State—

(a) to the same deductions and allowances as if it had been so received; and

(b) to the deduction, where such deduction cannot be made under, and is not forbidden by, any other provision of this Act, of any sum which has been paid in respect of income tax in the place where the income has arisen; and

(c) to a deduction on account of any annual interest or any annuity or other annual payment payable out of the income to a person not resident in the State,

and the provisions of this Act (including those relating to the delivery of statements) shall apply accordingly.

(2) Subsection (1) shall not apply—

(a) to any person who satisfies the Revenue Commissioners that he is not domiciled in the State, or that, being a citizen of Ireland, he is not ordinarily resident in the State, or

(b) to income arising from such securities and possessions as aforesaid which form part of the investments of the foreign life assurance fund of an assurance company.

(3) In the cases mentioned in subsection (2), the tax shall, subject to the provisions of section 77, be computed on the full amount of the actual sums received in the State from remittances payable in the State, or from property imported, or from money or value arising from property not imported, or from money or value so received on credit or on account in respect of such remittances, property, money or value brought into the State in the year preceding the year of assessment without any deduction or abatement.

(4) Where the Revenue Commissioners are satisfied that the application of the provisions of this section would give rise to hardship in the case of income derived from an employment exercised wholly outside the State they may grant such relief as in their opinion is just.

(5) Any person who is aggrieved by the decision of the Revenue Commissioners on any question as to domicile or ordinary residence arising under subsection (2) may, by notice in writing to that effect given to the Revenue Commissioners within two months from the date on which notice of the decision is given to him, make an application to have his claim for relief heard and determined by the Special Commissioners.

(6) Where an application is made under this section, the Special Commissioners shall hear and determine the claim in like manner as an appeal made to them against an assessment and all the provisions of this Act relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

Basis of assessment.

77.—(1) Tax under Case III of Schedule D shall, subject to the provisions of this section, be computed—

(a) as respects the year of assessment in which the profits or income first arise, on the full amount of the profits or income arising within that year; and

(b) as respects subsequent years of assessment, on the full amount of the profits or income arising within the year preceding the year of assessment:

Provided that—

(i) where the profits or income first arose on some day in the year preceding the year of assessment other than the 6th day of April, the computation shall be made on the profits or income of the year of assessment; and

(ii) where the profits or income first arose on the 6th day of April in the year preceding the year of assessment, or on some day in the year next before the year preceding the year of assessment other than the 6th day of April, the person charged shall be entitled, on giving notice in writing to the inspector at any time within twelve months after the end of the year of assessment, to be charged on the amount of the profits or income of that year, and if the tax charged has been paid, any amount overpaid shall be repaid.

(2) Tax shall, subject to the provisions of section 76, be paid on the actual amount computed as aforesaid without any deduction.

(3) If in any year of assessment any person charged or chargeable in respect of income or profits under Case III of Schedule D ceases to possess the whole of such single source of income or profits as is mentioned in section 75 (1) or any of the sources the income of which is directed to be separately computed under subsection (2) of that section, section 58 (5) shall, subject to the necessary modifications, apply in any such case as if the cesser of the possession of such single source or separate sources, as the case may be, were the discontinuance of a trade.

(4) The references in subsection (3) to a person ceasing to possess a source of income or profits shall be construed as referring to a cesser occurring by reason of the person dying while in possession of the source of income or profits as well as to a cesser occurring in the lifetime of such person, and for the purposes of subsection (3) such death shall be deemed to cause a cesser, and such cesser shall be deemed to take place on the day of such death.

(5) The provisions of subsection (1) shall, in cases where income tax is to be computed by reference to the amount of income received in the State, have effect as if references therein to income which arises or which arose were references to income which is or was so received.

Cattle and milk dealers.

78.—If the inspector finds that lands which have been charged under Schedule B on the assessable value, and which are occupied by a dealer in cattle or a dealer in or a seller of milk, are insufficient for the keep of the cattle brought on to the lands, so that the assessable value affords no just estimate of the profits, he may require a statement of the profits to be delivered, and charge such further sum thereon as, together with the charge under Schedule B, will make up the full sum wherewith the dealer or seller ought to be charged in respect of the like amount of profits charged according to section 77.

Chapter V

Case IV—General

Basis of assessment.

79.—(1) The nature of the profits or gains, and the basis on which the amount thereof has been computed, including the average, if any, taken thereon, shall be stated to the inspector.

(2) The computation shall be made, either on the full amount of the profits or gains arising in the year of assessment, or according to the average of such a period, not being greater than one year, as the case may require, and as may be directed by the inspector.

(3) Every such statement and computation shall be made to the best of the knowledge and belief of the person in receipt of or entitled to the profits or gains.

Chapter VI

Taxation of Rents and Certain Other Payments

Interpretation.

80.—(1) In this Chapter, save where the context otherwise requires—

“easement” includes any right, privilege or benefit in, over or derived from premises;

“lease” includes an agreement for a lease and any tenancy, but does not include a mortgage, and “lessee” and “lessor” shall be construed accordingly, and “lessee” and “lessor” include, respectively, the successors in title of a lessee or a lessor;

“long lease” means a lease granted for a term exceeding fifty years;

“premises” means any lands, tenements or hereditaments in the State;

“premium” includes any like sum, whether payable to the immediate or a superior lessor;

“rent” includes anything in the nature of rent and any payment made by the lessee to defray the cost of work of maintenance of or repairs to the premises, not being work required by the lease to be carried out by the lessee;

“short lease” means a lease granted for a term not exceeding fifty years;

“unit of valuation” means any lands, tenements or hereditaments valued under the Valuation Acts as a unit.

(2) In ascertaining, for the purposes of the definitions of “long lease” and “short lease” contained in subsection (1), the duration of a lease, the following provisions shall have effect:

(a) where the terms of the lease include provision for the determination thereof by notice given either by the lessor or by the lessee, the lease shall not be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice;

(b) where any of the terms of the lease (whether relating to forfeiture or to any other matter) or any other circumstance render it unlikely that the lease will continue beyond a date falling before the expiration of the term of the lease, the lease shall not be treated as having been granted for a term longer than one ending on that date.

(3) Any reference in this Chapter to one person being connected with another shall be construed in accordance with section 96 (3).

(4) Where the estate or interest of any lessor of any premises is the subject of a mortgage and either the mortgagee is in possession or the rents and profits are being received by a receiver appointed by or on the application of the mortgagee, that estate or interest shall be deemed, for the purposes of this Chapter, to be vested in the mortgagee, and references to a lessor shall be construed accordingly; but the amount of the liability to tax of any such mortgagee shall be computed as if the mortgagor was still in possession or, as the case may be, no receiver had been appointed, and as if it were the amount of the liability of the mortgagor that was being computed.

Taxation of rents under short leases.

81.—(1) The profits or gains arising from any rent in respect of any premises under a short lease shall, to the extent provided for by this Chapter, be deemed, for all the purposes of this Act, to be annual profits or gains within Schedule D and the lessor shall be chargeable in respect thereof under Case IV of that Schedule.

(2) Notwithstanding anything in section 79 (2), income tax in respect of profits or gains chargeable by virtue of this section shall in all cases be computed on the full amount of the profits or gains of the year of assessment.

(3) Subject to the subsequent provisions of this Chapter, the amount of the profits or gains to be charged under this section shall be arrived at by making from any rent to which the lessor becomes entitled in the year of assessment the deductions authorised by the next following subsection.

(4) The deductions authorised by this subsection are deductions by reference to any or all of the following matters:

(a) the amount, if any, on which the lessor is liable to pay, by deduction or otherwise, income tax under Schedule A for the year of assessment in respect of the premises;

(b) the excess, if any, of the amount of any rent payable by the lessor in respect of the premises, or in respect of a portion thereof, under a short lease over the amount referred to in paragraph (a) or, as the case may be, the portion of the latter amount which is referable to the portion of the premises in respect of which the rent is payable by the lessor;

(c) any sums borne by the lessor, in accordance with the conditions of the lease, in respect of county rate, municipal rate or other rate, whether such sums are by law charged upon him or upon the lessee;

(d) the cost to the lessor of any services rendered or goods provided by him, otherwise than by way of maintenance or repairs, being services or goods which he is legally bound under the lease to render or provide but in respect of which he receives no separate consideration;

(e) the cost of maintenance, repairs, insurance and management of the premises in so far as such cost is, by reason of obligations imposed by the lease, borne by the lessor,

and the amount of the deduction to be made by reference to each of the foregoing matters shall be the amount which would fall to be so made in computing profits or gains under the provisions applicable to Case I of Schedule D if it were enacted that the receipt of rent under a short lease should be deemed to be a trade carried on during the currency of the lease by the lessor for the time being and that the premises comprised in the lease should be deemed to be occupied for the purposes of that trade.

For the purposes of this subsection the currency of a lease shall be deemed to include a period, immediately following its termination, during which the lessor, immediately before the termination, was not in occupation of the premises or any part thereof, but was entitled to possession thereof, if at the end of that period the premises have become subject to another short lease granted by him.

(5) Where a lessor is entitled to rent in respect of premises (hereafter in this subsection referred to as the said premises) under a short lease and—

(a) the said premises do not comprise the whole of a unit of valuation or the whole of two or more such units, or

(b) a rent is payable by the lessor under a short lease in respect of premises which comprise the whole or a part of the said premises and other premises,

the inspector shall make, according to the best of his knowledge and judgment, any appropriate apportionment of rateable valuation or of rent payable by the lessor in determining the amount of any deduction under paragraph (a) (b) or (c) of subsection (4).

(6) An apportionment made under subsection (5) may be amended by the Special Commissioners, or by the Circuit Judge, on the hearing, or the rehearing, of an appeal against an assessment made on the basis of such apportionment; but, on the hearing, or the rehearing, of any such appeal, a certificate of the Commissioner of Valuation, tendered by either party to the appeal and certifying, as regards premises valued under the Valuation Acts as a unit, the amount of the rateable valuation of the premises attributable to any part of the premises, shall be conclusive as to the amount so attributable.

Additional deductions in certain cases.

82.—(1) In this section—

“excepted profits or gains” means profits or gains arising from rent under a short lease in respect of premises which comprise the whole of what was, on the 6th day of April, 1963, a unit of valuation where, for the year of assessment, all the following conditions are satisfied, that is to say:

(a) the premises are premises to which subsection (2) applies;

(b) the lease imposes no obligation on the lessee to maintain or repair the fabric or exterior of any building or to contribute to the cost of such maintenance or repairs, and

(c) the rent to which the lessor is entitled or, in a case in which a deduction is allowable under section 81 (4) (c) in arriving at the amount of the profits or gains for the purpose of assessment under Case IV of Schedule D, the said rent reduced by the deduction allowable as aforesaid, does not exceed £52 per annum;

“profit rent” means, in relation to any premises in respect of which a lessor is, in a year of assessment, entitled to rent under a short lease, the amount (hereafter in this definition referred to as the assessable amount) on which, but for the provisions of the following subsections of this section, the lessor would have been chargeable for the year of assessment under Case IV of Schedule D, in respect of profits or gains arising from the said rent, increased by any deduction allowed under section 81 (4) (a) in arriving at the assessable amount and reduced by the amount, if any, by which any deduction allowed under section 81 (4) (b) in arriving at the assessable amount falls short of the deduction which would have been so allowable if—

(i) no deduction had been allowable under section 81 (4) (a), and

(ii) section 81 (4) (b) and section 81 (5) applied to any payment to which section 93 applies as they apply to any rent payable under a short lease.

(2) (a) This subsection applies to any premises which are shown to the satisfaction of the Revenue Commissioners (or, on appeal, to the satisfaction of the Special Commissioners) to be in the year of assessment a controlled dwelling within the meaning of the Rent Restrictions Act, 1960.

(b) Where for any year of assessment a person is chargeable under Case IV of Schedule D in respect of profits or gains arising from any rent in respect of any premises to which this subsection applies under a short lease, the amount on which he would, apart from this subsection, be so chargeable shall be reduced by an amount equal to two-fifths of the profit rent:

Provided that, for any year of assessment, the aggregate of all amounts by which profits or gains, other than excepted profits or gains, arising to any person are reduced by virtue of this paragraph shall not exceed £200.

(3) The reference, in the proviso to subsection (2) (b), to profits or gains arising to any person shall be deemed to include, in the case of an individual, a reference to profits or gains arising to the wife or husband of the individual.

In this subsection and subsection (4) “wife” means a married woman who under section 196 (1) is to be treated as living with her husband, and “husband” has a corresponding meaning.

(4) (a) Where in any year of assessment profits or gains arise to both a husband and a wife from rents in respect of premises to which subsection (2) applies and the aggregate (hereafter in this subsection referred to as the gross aggregate) of all amounts by which the said profits or gains would have fallen to be reduced under this section, if the proviso to subsection (2) (b) (hereafter in this subsection referred to as the limiting provision) had been omitted from this section, exceeds what, in consequence of the operation of the limiting provision is the aggregate (hereafter in this subsection referred to as the net aggregate) of all amounts by which the said profits or gains may be reduced, the aggregate of all amounts by which the profits or gains arising to either spouse are reduced shall not exceed the sum which bears to the net aggregate the same proportion as the aggregate of all amounts by which, but for the limiting provision, the profits or gains arising to that spouse would have fallen to be reduced bears to the gross aggregate.

(b) Any reference in this subsection to profits or gains does not include a reference to excepted profits or gains.

Treatment of premiums, etc., as rent.

83.—(1) Where the payment of any premium is required under a lease, or otherwise under the terms subject to which a lease is granted, and the lease is a short lease, the lessor shall be treated for the purposes of section 81 as becoming entitled, when the lease is granted, to an amount by way of rent (in addition to any actual rent) equal to the amount of the premium reduced by one-fiftieth of that amount for each complete period of twelve months, other than the first, comprised in the term of the lease.

(2) Where the terms subject to which a lease of any premises is granted impose on the lessee an obligation to carry out any work on the premises, 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 an amount equal to the amount by which the value of the lessor's estate or interest, immediately after the commencement of the lease, falls short of what its then value would have been if the work had been carried out, but otherwise than at the expense of the lessee, and the rent were increased accordingly:

Provided that this subsection shall not apply in so far as the obligation requires the carrying out of work payment for which would, if the lessor and not the lessee were obliged to carry it out, be deductible from the rent under section 81 (4).

(3) 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), 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.

(4) 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) 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.

(5) Where a payment such as is mentioned in subsection (1), (3) or (4) is due to a person other than the lessor, the said subsection (1), (3) or (4) shall not apply in relation to that payment, but any amount which would have fallen to be treated as rent if the payment had been due to the lessor shall be treated as an annual profit or gain of that other person and chargeable to tax under Case IV of Schedule D:

Provided that where the amount relates to a payment falling within subsection (4), it shall not be so treated unless the payment is due to a person connected with the lessor.

(6) (a) If an amount by reference to which a person is chargeable to tax by virtue of this section is payable by instalments, the following provisions shall, where this subsection applies, have effect in lieu of the foregoing provisions of this section:

(i) each such instalment payable to the lessor for the time being shall be treated for the purposes of section 81 as if it were rent payable under the lease, and

(ii) each such instalment payable to a person who is not a lessor shall be treated as an annual profit or gain of that person and chargeable to tax under Case IV of Schedule D.

(b) This subsection applies where the person chargeable by virtue of this section by notice in writing, given to the inspector before the expiration of the year of assessment following that in which he becomes entitled to the first instalment, elects that it shall apply and where such notice of election is given all such additional assessments, alterations of assessments and repayments of tax shall be made as may be necessary.

(7) For the purposes of this section any sum, other than rent, paid on or in connection with the granting of a lease shall be presumed to have been paid by way of premium except in so far as other sufficient consideration for the payment is shown to have been given.

(8) Where the duration of a lease falls to be ascertained for the purposes of this section after a date on which the lease has for any reason come to an end, the duration shall, notwithstanding anything in section 80 (2), be taken to have extended from its commencement to that date; and where the duration falls to be ascertained for the said purposes at a time when the lease is subsisting, the provisions of section 80 (2) shall be applied in accordance with the circumstances obtaining at that time.

Charge on assignment of lease granted at undervalue.

84.—(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,

the amount of the excess, in so far as it is not greater than the amount foregone reduced by the amount of any such excess arising on a previous assignment of the lease, shall, in the same proportion as the amount foregone would under section 83 (1), have fallen to be treated as rent if it had been a premium under a lease, be treated as profits or gains of the assignor chargeable to tax under Case IV of Schedule D.

(2) In computing the profits or gains of a trade of dealing in land, any trading receipts falling within this section shall be treated as reduced by the amount on which tax is chargeable by virtue of this section.

Charge on sale of land with right to reconveyance.

85.—(1) Where the terms subject to which an estate or interest in land is sold provide that it shall be, or may be required to be, reconveyed at a future date to the vendor or a person connected with him, the vendor shall be chargeable to tax under Case IV of Schedule D on any amount by which the price at which the estate or interest is sold exceeds the price at which it is to be reconveyed or, if the earliest date at which, in accordance with those terms, it would fall to be reconveyed is a date two years or more after the sale, on that excess reduced by one-fiftieth thereof for each complete year (other than the first) in the period between the sale and that date.

(2) Where under the terms of the sale the date of the reconveyance is not fixed, then—

(a) if the price on reconveyance varies with the date, the price shall be taken for the purposes of this section to be the lowest possible under the terms of the sale;

(b) the vendor may, before the expiration of six years after the date on which the reconveyance takes place, claim repayment of any amount by which tax assessed on him by virtue of this section exceeded the amount which would have been so assessed if that date had been treated for the purposes of this section as the date fixed by the terms of the sale.

(3) Where the terms of the sale provide for the grant of a lease directly or indirectly out of the estate or interest to the vendor or a person connected with him, this section shall apply as if the grant of the lease were a reconveyance of the estate or interest at a price equal to the sum of the amount of the premium (if any) for the lease and the value at the date of the sale of the right to receive a conveyance of the reversion immediately after the lease begins to run:

Provided that this subsection shall not apply if the lease is granted, and begins to run, within one month after the sale.

(4) In computing the profits or gains of a trade of dealing in land, any trading receipts falling within this section shall be treated as reduced by the amount on which tax is chargeable by virtue of this section, but where, on a claim being made under subsection (2) (b), the amount on which tax was chargeable by virtue of this section is treated as reduced, this subsection shall be deemed to have applied to the amount as reduced, and such adjustment of liability to tax shall be made (for all relevant years of assessment), whether by means of an additional assessment or otherwise, as may be necessary.

Exclusion of certain lettings.

86.—Neither section 81 nor section 89 shall have effect in relation to a case in which the rent reserved under a lease (including, where the lease was granted on or after the 6th day of April, 1963, an appropriate sum in respect of any premium payable under the lease) is insufficient, taking one year with another, to defray the cost to the lessor of fulfilling his obligations under the lease and of meeting any expense of maintenance, repairs, insurance and management of the premises subject to the lease which fall to be borne by him, and for this purpose the lessor shall be deemed to bear annually an expense of management (in addition to any actual expense) equal to the amount on which he is liable to bear tax under Schedule A in respect of the premises.

Taxation of certain payments in respect of easements.

87.—Where, in any year of assessment, any person is entitled to any payment, other than a payment to which section 93 applies, in respect of any easement in relation to any premises, not being premises of the whole of which he is, throughout the period in respect of which the payment is due, the sole occupier for the purposes of Schedule A, the payment shall be treated for the purposes of section 81 as if it were rent payable in respect of premises under a short lease, and the provisions of that section shall with the necessary adaptations apply accordingly.

Provisions as to assessment.

88.—(1) Where for any year of assessment profits or gains chargeable to tax under Case IV of Schedule D by virtue of the foregoing provisions of this Chapter arise to any person from two or more sources, the several amounts of profits or gains so chargeable may be assessed in one assessment.

(2) Where an assessment, in respect of profits or gains chargeable as aforesaid for any year of assessment, is made in that year, whether pursuant to subsection (1) or otherwise—

(a) it shall be made on the basis that all sources of profits or gains and all facts relevant to the computation of profits or gains are the same as for the last preceding year of assessment, and

(b) tax shall be leviable accordingly, but any necessary adjustments shall be made after the end of the year, whether by way of additional assessment, repayment of tax or otherwise, to secure that tax is charged on the profits or gains of the year of assessment.

(3) For the purposes of subsection (2) (a), any amounts which but for section 83 would not be taken into account in the computation of profits or gains shall be disregarded.

Relief in respect of losses.

89.—Where for any year of assessment the aggregate amount of the deductions authorised, in relation to any short lease, by section 81 (4) exceeds the amount of rent to which the lessor becomes entitled in the year, the excess shall be deemed to be such a loss as is mentioned in section 310 and the provisions of that section shall apply accordingly.

Relief for amount not received.

90.—(1) Where on a claim in that behalf a lessor proves that he has not received an amount which he was entitled to receive in relation to a short lease and—

(a) if the non-receipt of the said amount was attributable to the default of the person by whom it was payable, that the said amount is irrecoverable, or

(b) if he has waived payment of the said amount, that the waiver was made without consideration and was reasonably made in order to avoid hardship,

the lessor shall be treated for the purposes of this Chapter as if he had not been entitled to receive the said amount and his liability to tax for the year of assessment in which he became entitled to receive the said amount and for any subsequent year shall be adjusted, by repayment or otherwise, as the circumstances of the case may require; but if all or any of the said amount is subsequently received, the lessor's liability to tax for all relevant years of assessment shall be appropriately re-adjusted by additional assessment or otherwise.

(2) Any claim to repayment under this section shall be made to, and determined by, the inspector; but any person aggrieved by any determination of the inspector on any such claim may, on giving notice in writing to the inspector within twenty-one days after notification to him of the determination, appeal to the Special Commissioners.

(3) The Special Commissioners shall hear and determine an appeal to them under subsection (2) as if it were an appeal against an assessment to income tax, and the provisions of this Act relating to the rehearing of an appeal or the statement of a case for the opinion of the High Court on a point of law, shall, with the necessary modifications, apply accordingly.

Deduction by reference to premium, etc., paid in the computation of profits for purposes of Schedule D, Cases I & II.

91.—(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), (3), (4) or (5) of section 83 or under section 84 or 85, or

(b) would have become so chargeable but for section 83 (6) or but for section 92 (2) or but for any exemption from tax,

and, during any part of the relevant period, the premises are wholly or partly occupied by the person for the time being entitled to the lease, estate or interest as respects which the amount chargeable arose for the purposes of a trade or profession carried on by him, that person shall be treated, for the purpose of computing the profits or gains of the trade or profession for assessment under Case I or Case II of Schedule D, as paying in respect of the premises rent for any part of the relevant period during which the premises are occupied by him as aforesaid (in addition to any rent actually paid) an amount which bears to the amount chargeable the same proportion as that part of the relevant period bears to the whole, and such rent shall be taken as accruing from day to day.

(2) In this section “the relevant period” means—

(a) where the amount chargeable arose under section 83, the period treated, in computing that amount, as being the duration of the lease;

(b) where the amount chargeable arose under section 84, 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 chargeable arose under section 85, 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.

(3) Where the amount chargeable arose under section 83 (2) 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 Chapter II of Part XV or under Part XVI, this section shall apply as if the obligation had not included the incurring of that expenditure and the amount chargeable had been calculated accordingly.

(4) Where the amount chargeable arose under section 85 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, 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.

Deductions by reference to premiums, etc., paid in computation of profits for purposes of this Chapter.

92.—(1) Where in relation to any premises an amount has become or would have become chargeable to tax as mentioned in section 91 (1) 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 section 81 (4) 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 83, 84 or 85 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 section 83 (6), 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) 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) 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 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 83, the period treated, in computing that amount, as being the duration of the lease;

(b) where the amount arose under section 84, 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 85, 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) 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 section 83 (2) 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 XVI, 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 85 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.

Taxation of rents under long leases and certain other payments.

93.—(1) This section applies to the following payments:

(a) any rent payable in respect of any premises the property in which is not separately assessed and charged under Schedule A, or in respect of any easement, where the premises or easement is used, occupied or enjoyed in connection with any of the concerns the profits of which are chargeable to tax under Case I (b) of Schedule D by virtue of section 53,

(b) any rent payable in respect of any premises, other than premises used, occupied or enjoyed as aforesaid, under a long lease, and

(c) any yearly interest, annuity, rentcharge, fee farm rent or other annual payment reserved in respect of, or charged on or issuing out of, any premises, not being a rent payable under a lease or in respect of premises used, occupied or enjoyed as mentioned in paragraph (a) or such a rentcharge as is mentioned in section 18 (5),

being a payment falling due on or after the 6th day of April, 1963.

In paragraph (a) the reference to rent shall be deemed to include a reference to a toll, duty, royalty or annual or periodical payment in the nature of rent, whether payable in money or money's worth or otherwise.

(2) Neither section 18 (1) nor section 18 (3) shall have effect in relation to any payment to which this section applies.

(3) Any payment to which this section applies shall—

(a) so far as it does not fall within any other Case of Schedule D, be charged with tax under Case IV of that Schedule, and

(b) subject to section 104, be treated, for the purposes of paragraph (m) of section 61 and of sections 433 and 434 as if it were a royalty paid in respect of the user of a patent:

Provided that where such a rent as is mentioned in subsection (1) (a) is rendered in produce of the concern, this subsection shall have effect as if paragraph (b) were omitted; and the value of the produce so rendered shall be taken to be the amount of profits or income arising therefrom.

(4) Section 8 (2) shall have effect as if “other annual payment”, in both places where occurring in that subsection, included a reference to any payment to which this section applies not being a payment of rent, interest or annuity.

Returns, etc.

94.—For the purpose of obtaining particulars of profits or gains chargeable to tax under Case IV of Schedule D by virtue of this Chapter, the inspector may by notice in writing require—

(a) any lessor, or former lessor, of premises to give, within the time limited by the notice, such information as may be specified in the notice as to the provisions of the lease and the terms subject to which the lease was granted and as to payments made to or by him in relation to the premises;

(b) any lessee, occupier, or former lessee or occupier of premises (including any person having, or having had, the use of premises) to give such information as may be specified in the notice as to the terms applying to the lease, occupation or use of the premises, and where any of those terms are established by any written instrument, to produce the instrument to the inspector for inspection;

(c) any lessee or former lessee of premises to give such information as may be specified in the notice as to any consideration given for the grant to him of the lease;

(d) any person who as agent manages premises or is in receipt of rent or other payments arising from premises to furnish the inspector with such particulars relating to payments arising therefrom as may be specified in the notice.

Restriction of section 24.

95.—Where for any year of assessment a deduction may be made under section 81 (4) in respect of the cost of maintenance, repairs, insurance or management of any premises, no relief from income tax under Schedule A in respect of the premises shall be allowed under section 24.

Chapter VII

Profits or Gains from Dealing in or Developing Land

Interpretation.

96.—(1) In this Chapter, 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;

“trading stock” has the same meaning as in section 62;

any reference to the disposal of an interest in land includes a reference to the creation of an interest and any reference to the acquisition of an interest in land includes a reference to the acquisition of an interest which ceases on the acquisition;

any reference to price or consideration in relation to the acquisition or disposal of an interest in land shall, in a case in which a lease is granted, be construed as a reference to the fine, premium or like sum payable for the grant of the lease.

(2) For the purposes of this Chapter—

(a) the conveyance or transfer by way of security of any interest in any land or the granting of a lease, for a rent which is the only money consideration, of any land shall not be regarded as involving an acquisition or disposal of an interest in the land, and

(b) an option or other right to acquire or dispose of any interest in any land shall be deemed to be an interest in the land.

(3) (a) Any question whether a person is connected with another shall for the purpose of this Chapter be determined in accordance with the following paragraphs of this subsection, any provision that one person is connected with another being taken to mean that they are connected with one another.

(b) A person is connected with an individual if that person is the individual's husband or wife, or is a relative, or the husband or wife of a relative, of the individual or of the individual's husband or wife.

(c) A person in his capacity as trustee of a settlement, is connected with any individual who in relation to the settlement is a settlor, and with any person who is connected with such an individual.

(d) A person is connected with any person with whom he is in partnership, and with the husband or wife or a relative of any individual with whom he is in partnership.

(e) A company is connected with another company—

(i) if the same person has control of both, or a person has control of one and persons connected with him, or he and persons connected with him have control of the other; or

(ii) if a group of two or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he is connected.

(f) A company is connected with another person, if that person has control of it or if that person and persons connected with him together have control of it.

(g) Any two or more persons acting together to secure or exercise control of a company shall be treated in relation to that company as connected with one another and with any person acting on the directions of any of them to secure or exercise control of the company.

(h) In this subsection—

“company” includes any body corporate;

“relative” means brother, sister, ancestor or lineal descendant;

“settlement” includes any disposition, trust, covenant, agreement, or arrangement, and any transfer of money or other property or of any right to money or other property;

“settlor”, in relation to a settlement, includes any person by whom the settlement was made or entered into directly or indirectly, and in particular (but without prejudice to the generality of the preceding words of this definition) includes any person who has provided or undertaken to provide funds directly or indirectly for the purpose of the settlement, or has made with any other person a reciprocal arrangement for that other person to make or enter into the settlement.

(4) The provisions of this Chapter shall have effect notwithstanding anything in Schedule A or the provisions applicable to that Schedule or in Chapter VI of Part IV.

Extension of Schedule D charge to certain profits from dealing in or developing land.

97.—(1) Without prejudice to any other provision of this Act 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 Chapter, 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 87 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 subsection (2) (a), 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 paragraph (b) (ii), 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.

(4) (a) A business of dealing in or developing land shall be deemed to be a trade within Schedule D, or as the case may be, part of such a trade, and tax in respect of the profits or gains thereof shall be charged under Case I of the said Schedule D accordingly, both where, apart from this section, the business would fall to be regarded as such a trade or part of such a trade if every disposal of an interest in land effected in the course of the business was a disposal of the full interest in the land which the person carrying on the business had acquired and that interest had been acquired by him in the course of the business, as well as where, apart from this section, the business is such a trade or part of such a trade.

(b) In any other case tax in respect of the profits or gains of a business of dealing in or developing land shall be charged under Case IV of Schedule D.

Computation under Case I of Schedule D of profits or gains from dealing in or developing land.

98.—(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 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).

(2) (a) Any consideration, other than rent or an amount treated as rent under section 83, 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) the cost of the acquisition of the superior interest shall, subject to paragraphs (e) and (f), 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) except in relation to that interest to which the other or all the others are subject.

(d) For the purposes of paragraph (b) 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 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) 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), 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), 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.

(g) Section 62 shall have effect as if the provision in subsection (2) thereof as regards a case in which a trade carried on by an individual is discontinued by reason of his death were omitted therefrom.

(h) Any consideration (other than a payment to which section 87 applies) for the granting by the trader of any right in relation to the development of any land shall be taken into account as a trading receipt.

(i) As respects any land an interest in which falls to be treated as trading stock—

(i) rent payable or receivable shall, save to the extent provided by the foregoing provisions of this subsection, be disregarded, and

(ii) other receipts and outgoings arising from, or attributable to, the occupation or use of the land by the trader (other than use for the purposes of the trade) or by any other person shall likewise be disregarded.

Computation under Case IV of Schedule D of profits or gains from dealing in or developing land.

99.—In the case of a business of dealing in or developing land the profits or gains of which are chargeable to tax under Case IV 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 98, 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 Chapter, chargeable to tax under the said Case IV 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 £1,500 shall be disregarded.

Transfers of interests in land between certain associated persons.

100.—(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

(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—

(b) the interest is disposed of at a price less than its market value, and

(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.

Tax to be charged under Case IV of Schedule D in relation to the sale of certain shares.

101.—(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) are satisfied, be deemed to be income of the seller up to the amount specified in subsection (5), and shall be chargeable under Case IV of Schedule D accordingly.

(2) The conditions referred to in subsection (1) 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) 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, 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) 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) 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) 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) 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) (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) 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) reduced or, as the case may require, increased by the excess mentioned in paragraph (a) or (b) of subsection (5).

(7) For the purposes of subsection (5) 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)) is deemed to be income of his shall be deemed for the purposes of this subsection to be the highest part of his income.

(9) Where, in consequence of a sale of shares, any amount would have, under subsection (1), been deemed to be income of the seller if the condition specified in subsection (2) (c) had been satisfied, and on the sixth anniversary of the sale any interest in a building such as is mentioned in subsection (2) (b) is still held by the company, then, income of the like amount shall be deemed to have been received by the company on the said anniversary and shall be chargeable under Case IV of Schedule D accordingly.

(10) If after the sale of the shares any receipts accrue to the company from the disposal, in the course of a business of dealing in or developing land, of an interest in a building, being an interest which the company had at the time of the sale of the shares and with respect to which the profit which would have arisen on the disposal thereof was taken into account in arriving at the amount of income chargeable to tax by reference to the sale under the foregoing provisions of this section, the receipts shall be disregarded for income tax purposes if and to the extent that it is just so to do having regard to any tax charged under the said provisions.

(11) Where a building has been or has begun to be constructed by a company on land in which a company connected with that company has an interest and after the construction has been begun and not later than six years after its completion a person acquires control of the first company, then, as respects sales to that person of shares in the company having the interest in the land (whether effected before or after that person acquires control of the first company), the foregoing subsections shall apply as they apply to such a company as is therein mentioned but with the substitution for references to an interest in the building of references to an interest in the land.

(12) Where a company not carrying on a trade, but of which the activities consist of or include the construction or the securing of the construction of a building, is wound up, and the commencement of the winding up falls at a time after the construction has begun and not later than six years after its completion, then, if immediately before that time the company had (directly or indirectly) an interest in the building, the company shall be treated for income tax purposes as having received immediately before that time untaxed profits, chargeable under Case IV of Schedule D, of an amount equal to the amount (if any) of profits or gains of the company chargeable to tax which would have arisen if, the interest being trading stock of a trade carried on by the company, the interest had, immediately before that time, been disposed of in the course of the trade for a consideration equal to its market value at that time.

(13) For the purposes of the foregoing subsections an uncompleted building shall be taken to include so much of any materials belonging to the company as are required for erecting the building, and a building (whether complete or not) shall be taken to include its site.

(14) For the purposes of this section—

(a) “share” shall be construed in relation to a company not limited by shares (whether or not it has a share capital) as including references to the interests of the member in the company as such whatever the form of that interest, and

(b) the sale of rights attached to or forming part of a share shall be treated as a sale of a share, as if the rights included in the sale and those not included had been separate shares.

(15) Where by virtue of this section the consideration for a sale of shares is deemed to be income of the seller and any securities of the company other than shares in the company are included in the sale at a price in excess of the company's liability on the securities, the excess shall be treated for the purposes of this section as part of the consideration for the sale of the shares.

Application of section 101 to sales of shares in holding companies.

102.—(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 101 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 section 101 as having been sold at the relevant time to the person mentioned in paragraph (c) by the seller of the shares mentioned in that paragraph for a consideration equal to the amount specified in subsection (3).

(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) is the amount of the consideration for the sale mentioned in subsection (1) (c)—

(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), 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 subsection (1) (d) 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 subsection (1) (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)—

(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 101, and the foregoing provisions of this section, shall all apply.

(7) Where, instead of shares in the second company being sold as mentioned in subsection (1) (c), 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.

Provisions supplementary to sections 101 and 102.

103.—(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 section 96 (3)) 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.

Chapter VIII

Payment of Certain Rents Without Deduction of Tax

Payment of certain rents without deduction of tax.

104.—(1) In this section—

“lessor” means a person to whom rent is payable;

“premises” means any lands, tenements or hereditaments in the State;

“rent” means any such payment as is mentioned in section 93 (1) (b).

(2) (a) It shall be lawful for the inspector to enter into an arrangement with a lessor whereby the income tax chargeable on any or all rents payable to the lessor is assessed and charged by assessment under Case IV of Schedule D instead of being deducted under section 433 or 434.

(b) Where pursuant to such an arrangement a lessor is for any year of assessment chargeable by assessment under Case IV of Schedule D in respect of two or more amounts of rent, the several amounts may be assessed in one assessment.

(d) Either party to any such arrangement may at any time give notice in writing to the other that he wishes to terminate the arrangement, and, on the expiration of one month from the giving of such notice, the arrangement shall be terminated.

(3) In connection with the making of an arrangement under this section and from time to time during the currency of such an arrangement, the inspector may by notice in writing require the lessor to deliver within the time limited by the notice such information as may be specified in the notice as to the rents receivable by him and, in particular and without prejudice to the generality of the foregoing, may require the lessor to deliver a statement setting out the names and addresses of all persons by whom rents are payable to him, the annual amount of the rent so payable by each such person and the situation of the premises in respect of which such rent is payable.

(4) Where it is necessary to do so for the purpose of giving effect to subsection (2), the inspector may give to any person by whom a rent is payable—

(a) a notice in writing instructing him that payments of the rent becoming payable by him to the lessor concerned on or after a specified date (which shall be not less than one month after the date of the notice) are to be paid without deduction of tax;

(b) a notice in writing instructing him that the notice previously given under paragraph (a) is cancelled and that tax is deductible from all payments of the rent paid after a specified date (which shall be not less than seven days after the date of the notice).

(5) The following provisions shall have effect in relation to payments of rent which by reference to instructions given under subsection (4) are payable without deduction of tax—

(a) section 93 shall have effect in relation to the payments as if subsection (3) (b) of that section were deleted;

(b) the payments shall be deemed for the purposes of section 81 (4) (b) to have been payable under a short lease;

(c) where the payments becoming payable in a year of assessment are paid in respect of premises occupied for the purposes of a trade or profession carried on by the person by whom they are paid, that person shall be allowed, by repayment or otherwise, such relief, if any, as may be necessary to reduce the total amount of tax ultimately borne by him for the year to the amount which would have been so borne if the notice under subsection (4) (a) had not been given;

(d) so much of the payments becoming payable in a year of assessment as do not otherwise fall to be taken into account in the computation, for the purposes of income tax, of the amount of any profits or gains or loss of the person by whom they are paid shall be deducted from or set off against the income for the year of assessment of that person.

Chapter IX

Miscellaneous Provisions as to Schedule D

Persons chargeable.

105.—Tax under Schedule D shall be charged on and paid by the persons or bodies of persons receiving or entitled to the income in respect of which tax under that Schedule is in this Act directed to be charged.

Interest payable out of rates.

106.—(1) Where any creditor on any rates or assessments not chargeable as profits is entitled to any interest of money, the proper officer having the management of the accounts may be charged with the tax payable thereon, and shall be answerable for all matters necessary to enable the tax to be duly charged and for payment thereof, as if the rates or assessments were profits chargeable to tax, and shall be, in like manner, indemnified in respect of all such matters as if the said rates or assessments were chargeable.

(2) Where—

(a) the proper officer having the management of the accounts of a body may be charged with tax as aforesaid for any year of assessment, and

(b) in that year that body occupies any property, in respect of which any tax under Schedule A for that year would, but for this subsection, be ultimately borne by that body,

then, in computing the amount on which the said proper officer may be so charged for that year, a deduction shall be made of a sum equal to whichever of the following is the lesser—

(i) the amount on which, but for this subsection, the said proper officer might so be charged,

(ii) the net amount on which the tax, referred to in paragraph (b) would, but for this subsection, be ultimately borne by that body.

Apportionment of profits.

107.—(1) Where in the case of any profits or gains chargeable under Case III of Schedule D pursuant to section 78 or chargeable under Case I, Case II or Case IV of Schedule D it is necessary, in order to arrive at the profits or gains or losses of any year of assessment or other period, to divide and apportion to specific periods the profits or gains or losses for any period for which the accounts have been made up, or to aggregate any such profits or gains or losses or any apportioned parts thereof, it shall be lawful to make such a division and apportionment or aggregation.

(2) Any apportionment under this section shall be made in proportion to the number of months or fractions of months in the respective periods.

Limitation of deductions for certain taxes.

108.—As respects the computation of income for the purposes of income tax for any year of assessment, any deduction which, but for this section, would be allowable for the tax in the United Kingdom known as profits tax shall be reduced by an amount equal to so much of that tax as can, under section 21 of the Finance Act, 1949 , be allowed as a credit against corporation profits tax.

PART V

Schedule E and Principal Provisions Relating Thereto

Chapter I

Charge to Tax, etc.

Schedule E.

109.—This Schedule referred to in this Act as Schedule E is as follows—

Schedule E

1. Tax under this Schedule shall be charged in respect of every public office or employment of profit, and in respect of every annuity, pension, or stipend payable out of the public revenue of the State, other than annuities charged under Schedule C, for every twenty shillings of the annual amount thereof.

2. Tax under this Schedule shall also be charged in respect of any office, employment or pension the profits or gains arising or accruing from which would be chargeable to tax under Schedule D but for the proviso to section 52.

3. In this Schedule the word “annuity” and the word “pension” include respectively an annuity which is paid voluntarily or is capable of being discontinued and a pension which is so paid or is so capable.

4. The preceding provisions of this Schedule are without prejudice to any other provision of this Act directing tax to be charged under this Schedule, and tax so directed to be charged shall be charged accordingly.

5. The provisions of Schedule 2 shall apply in relation to the tax to be charged under this Schedule.

Persons chargeable and extent of charge.

110.—(1) Tax under Schedule E shall be annually charged on every person having or exercising an office or employment of profit mentioned in that Schedule, or to whom any annuity, pension, or stipend, chargeable under that Schedule, is payable, in respect οf all salaries, fees, wages, perquisites or profits whatsoever therefrom and shall be computed:—

(a) in the case of emoluments to which the provisions of Chapter IV of this Part are applied by section 125, on the amount of those emoluments for the year of assessment, and not otherwise;

(b) in the case of any office or employment held or exercised occasionally or intermittently in the State by a person who is not continuously resident there, on the amount of all such salaries, fees, wages, perquisites or profits whatsoever therefrom for the year of assessment;

(c) in any other case, subject to the provisions of section 111, on the amount of all such salaries, fees, wages, perquisites or profits whatsoever therefrom for the year preceding the year of assessment,

after deducting the amount of duties or other sums payable or chargeable on the same by virtue of any statute, where the same have been really and bona fide paid and borne by the party to be charged.

(2) In this section “emoluments” means anything assessable to income tax under Schedule E.

Basis of assessment.

111.—(1) In the case of income tax chargeable under Schedule E in respect of any office or employment held by any person, or any annuity, pension or stipend to which any person is entitled, tax shall, in the class of case referred to in section 110 (1) (c) and subject as hereinafter provided, be computed—

(a) as respects the year of assessment in which the person first holds the office or employment or becomes entitled to the annuity, pension or stipend, on the amount of his emoluments for that year;

(b) as respects subsequent years of assessment on the full amount of the emoluments for the year preceding the year of assessment, provided that where the person first held the office or employment or became entitled to the annuity, pension or stipend in the year preceding the year of assessment the computation shall be made on the amount of the emoluments for the year of assessment, provided also that, where the person first held the office or employment or became entitled to the annuity, pension or stipend in the year next before the year preceding the year of assessment, he shall be entitled on giving notice in writing to the inspector within twelve months after the end of the year of assessment, to be charged on the amount of the emoluments for the year of assessment.

(2) Where in any year of assessment a person ceases to hold an office or employment or to be entitled to an annuity, pension or stipend chargeable under Schedule E, tax shall be charged for that year on the amount of his emoluments for the period beginning on the 6th day of April in that year and ending on the date of the cessation and, if tax has been charged otherwise than in accordance with this provision, any tax overpaid shall be repaid, or an additional assessment may be made, as the case may require.

(3) In the case of the death of a person in whose case, if he had not died, tax would, under the provisions of subsection (2) have become chargeable 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.

(4) In this section “emoluments” means all salaries, fees, wages, perquisites or profits or gains whatsoever arising from an office or employment, or the amount of any annuity, pension or stipend as the case may be.

Making of deductions.

112.—(1) Any deduction from emoluments allowed under this Act for the purpose of computing an assessment to income tax under Schedule E shall be made by reference to the amount paid or borne for the year or portion of the year upon the emoluments of which the computation is made.

(2) In this section “emoluments” has the same meaning as in section 111.

Appeal against amount of deduction.

113.—(1) Any person charged to income tax under Schedule E may appeal to the Special Commissioners against the amount of tax deducted from his emoluments for any year.

(2) The Special Commissioners shall hear and determine an appeal to them under subsection (1) as if it were an appeal to them against an assessment to income tax and the provisions of this Act relating to the rehearing of an appeal or the statement of a case for the opinion of the High Court on a point of law, shall, with the necessary modifications, apply accordingly.

Chapter II

Payments on Retirement, etc.

Payments on retirement or removal from office or employment.

114.—(1) Subject to the provisions of this Chapter, income tax shall be charged under Schedule E in respect of any payment tο which this section applies which is made to the holder or past holder of any office or employment, or to his executors or administrators, whether made by the person under whom he holds or held the office or employment or by any other person.

(2) This section applies to any payment (not otherwise chargeable to income tax) which is made, whether in pursuance of any legal obligation or not, either directly or indirectly in consideration or in consequence of, or otherwise in connection with, the termination of the holding of the office or employment or any change in its functions or emoluments including any payment in commutation of annual or periodical payments (whether chargeable to tax or not) which would otherwise have been made as aforesaid.

(3) For the purposes of this Chapter, any payment made to the spouse or any relative or dependant of a person who holds or has held an office or employment, or made on behalf of or to the order of that person, shall be treated as made to that person, and any valuable consideration other than money shall be treated as a payment of money equal to the value of that consideration at the date when it is given.

(4) Any payment which is chargeable to tax by virtue of this section shall be treated as income received on the following date, that is to say—

(a) in the case of a payment in commutation of annual or other periodical payments, the date on which the commutation is effected;

(b) in the case of any other payment, the date of the termination or change in respect of which the payment is made,

and shall be treated as emoluments of the holder or past holder of the office or employment assessable to income tax under Schedule E.

(5) In the case of the death of any person who, if he had not died, would have been chargeable to tax in respect of any such payment, 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.

(6) This section does not apply to any payment made before the 14th day of April, 1964, nor to any payment, whenever made, being—

(a) a payment made in pursuance of an obligation incurred before that date; or

(b) a payment made in respect of a termination or change which took place before that date, not being a payment made in commutation of annual or periodical payments;

but subject as aforesaid this section applies to payments made before as well as after the passing of this Act.

(7) Where any payment chargeable to tax under this section is made to any person in any year of assessment, it shall be the duty of the person by whom it is made to deliver particulars thereof in writing to the inspector not later than fourteen days after the end of that year.

Exemptions and reliefs in respect of tax under section 114.

115.—(1) Tax shall not be charged by virtue of section 114 in respect of the following payments, that is to say—

(a) any payment made in connection with the termination of the holding of an office or employment by the death of the holder, or made on account of injury to or disability of the holder of an office or employment;

(b) any sum chargeable to sur-tax under section 525;

(c) a benefit provided in pursuance of any such scheme or agreement as is referred to in section 227, where the holder of the office or employment was chargeable to tax in respect of sums paid, or treated as paid, with a view to the provision of the benefit;

(d) a benefit paid in pursuance of any such scheme or fund as is described in section 228 (1) (2).

(2) Tax shall not be charged by virtue of section 114 in respect of a payment in respect of an office or employment in which the holder's service included foreign service where—

(a) in the case of a payment of compensation for loss of office, the foreign service comprised the whole of the three years immediately preceding the relevant date (or the whole period of service if less than three years), or

(b) in the case of any other payment, the foreign service comprised either—

(i) in any case, three-quarters of the whole period of service down to the relevant date, or

(ii) where the period of service down to the relevant date exceeded ten years, the whole of the last ten years, or

(iii) where the period of service down to the relevant date exceeded twenty years, one-half of that period, including any ten of the last twenty years.

(3) Tax shall not be charged by virtue of section 114 in respect of a payment of an amount not exceeding £3,000, and in the case of a payment which exceeds that amount shall be charged only in respect of the excess:

Provided that where two or more payments in respect of which tax is chargeable by virtue of that section, or would be so chargeable apart from the foregoing provisions of this subsection, are made to or in respect of the same person in respect of the same office or employment, or in respect of different offices or employments held under the same employer or under associated employers, this subsection shall apply as if those payments were a single payment of an amount equal to that aggregate amount; and the amount of any one payment chargeable to tax shall be ascertained as follows, that is to say—

(a) where the payments are treated as income of different years of assessment, the said sum of £3,000 shall be deducted from a payment treated as income of an earlier year before any payment treated as income of a later year; and

(b) subject as aforesaid, the said sum shall be deducted rateably from the payments according to their respective amounts.

(4) The person chargeable to tax by virtue of section 114 in respect of any payment may, before the expiration of six years after the end of the year of assessment of which it is treated as income, by notice in writing to the inspector claim any such relief in respect of the payment as is applicable thereto under Schedule 3; and where such a claim is duly made and allowed, all such repayments and assessments of tax shall be made as are necessary to give effect thereto.

(5) For the purposes of this section and of Schedule 3 offices or employments in respect of which payments to which section 114 applies are made shall be treated as held under associated employers if, on the date which is the relevant date in relation to any of those payments, one of those employers is under the control of the other or of a third person who controls or is under the control of the other on that or any other such date.

(6) In this section “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.

(7) In this section “the relevant date”, “payment of compensation for loss of office” and “foreign service” have the same meaning as in Schedule 3, and references to an employer or to a person controlling or controlled by an employer include references to his successors.

(8) For the purposes of any provision of this Act requiring income of any description to be treated as the highest part of a person's income, that income shall be calculated without regard to any payment chargeable to tax by virtue of section 114.

Chapter III

Expenses Allowances and Benefits in Kind

Expenses allowances.

116.—(1) Subject to the provisions of this Chapter, any sum paid in respect of expenses, by a body corporate to any of its directors or to any person employed by it in an employment to which this Chapter applies, shall, if not otherwise chargeable to income tax as income of that director or employee, be treated for the purposes of section 110 as a perquisite of the office or employment of that director or employee and included in the emoluments thereof assessable to income tax (including sur-tax) accordingly, but nothing in this subsection shall prevent a claim for a deduction being made under Rule 3 of Schedule 2 in respect of any money expended wholly, exclusively and necessarily in performing the duties of the office or employment.

(2) The reference in subsection (1) to any sum paid in respect of expenses includes a reference to any sum put by a body corporate at the disposal of a director or employee and paid away by him.

Benefits in kind.

117.—(1) Subject to the following provisions of this Chapter, where—

(a) a body corporate incurs expense in or in connection with the provision, for any of its directors or for any person employed by it in an employment to which this Chapter applies, of living or other accommodation, of entertainment, of domestic or other services or of other benefits or facilities of whatsoever nature, and

(b) apart from this section, the expense would not be chargeable to income tax as income of the director or employee,

Rule 3 of Schedule 2 and sections 110 and 178 shall have effect in relation to so much of the expense as is not made good to the body corporate by the director or employee as if the expense had been incurred by the director or employee and the amount thereof had been refunded to him by the body corporate by means of a payment in respect of expenses, and income tax (including sur-tax) shall be chargeable accordingly.

(2) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee, in any of its business premises, of any accommodation, supplies or services provided for the director or employee himself and used by him solely in performing the duties of his office or employment.

(3) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision of living accommodation for an employee in part of any of its business premises which include living accommodation if the employee is, for the purpose of enabling him properly to perform his duties, required by the terms of his employment to reside in the accommodation and either—

(a) the accommodation is provided in accordance with a practice which, since before the beginning of the ten years ending with the passing of the Finance Act, 1958 , has commonly prevailed in trades of the class in question as respects employees of the class in question, or

(b) it is necessary, in the case of trades of the class in question, that employees of the class in question should reside on premises of the class in question,

but this subsection shall not apply where the employee is a director of the body corporate in question or of any other body corporate over which that body corporate has control or which has control over that body corporate or which is under the control of a person who also has control over that body corporate.

(4) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision of meals in any canteen in which meals are provided for the staff generally.

(5) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee himself, or for his spouse, children or dependants, of any pension, annuity, lump sum, gratuity or other like benefit to be given on his death or retirement.

(6) Any reference in this section to expense incurred in or in connection with any matter includes a reference to a proper proportion of any expense incurred partly in or in connection with that matter.

Valuation of benefits in kind.

118.—(1) Any expense incurred by a body corporate in the acquisition or production of an asset which remains its own property shall be left out of account for the purposes of section 117.

(2) Where the making of any such provision as is mentioned in section 117 (1) takes the form of a transfer of the property in any asset of the body corporate, and, since the acquisition or production thereof by the body corporate, the asset has been used or has depreciated, the body corporate shall be deemed to have incurred in the making of that provision expense equal to the value of the asset at the time of the transfer.

(3) (a) Where a body corporate is assessed or assessable under Schedule A in respect of any premises the whole or any part of which is made available by it as living or other accommodation for any of its directors or employees, and either the body corporate pays no rent in respect of the premises or the annual amount of the rent paid by it is less than the amount of the assessment under Schedule A on the premises, section 117 shall have effect as if the body corporate paid in respect of the premises an annual rent equal to the amount of the assessment under Schedule A on the premises.

(b) In this subsection “the amount of the assessment under Schedule A” means an amount which would have been the amount of the assessment thereunder for the year of assessment in question if—

(i) in section 10 (2) the words “except in the cases mentioned in the subsequent provisions of this section” and “five-fourths of” were omitted, and,

(ii) section 10 (3) (4) (5) (6) had not been enacted.

(4) Where an asset which continues to belong to the body corporate is used wholly or partly in the making of any such provision as is mentioned in section 117 (1) and the asset is not premises, the body corporate shall be deemed for the purposes of that section to incur (in addition to any other expense incurred by it in connection with the asset, not being expense to which subsection (1) of this section applies) annual expense in connection therewith of an amount equal to the annual value of the use of the asset, but where any sum by way of rent or hire is payable by the body corporate in respect of the asset—

(a) if the annual amount of the rent or hire is equal to or greater than the annual value of the use of the asset, this subsection shall not apply, and

(b) if the annual amount of the rent or hire is less than the annual value of the use of the asset, the rent or hire shall be left out of account for the purposes of that section.

(5) Any reference in this section to a body corporate which is assessable under Schedule A in respect of any premises shall be deemed to include a reference to a body corporate which would be so assessable if a state of affairs which subsists during any part of the year had subsisted for the whole of the year.

Meaning of “director”, “employment” and “employment to which this Chapter applies”.

119.—(1) In this Chapter, “director” means—

(a) in relation to a body corporate the affairs whereof are managed by a board of directors or similar body, a member of that board or similar body,

(b) in relation to a body corporate the affairs whereof are managed by a single director or similar person, that director or person,

(c) in relation to a body corporate the affairs whereof are managed by the members themselves, a member of the body corporate,

and includes any person in accordance with whose directions or instructions the directors of a body corporate, defined in accordance with the preceding provisions of this subsection, are accustomed to act, but a person shall not, within the meaning of this subsection, be deemed to be a person in accordance with whose directions or instructions the directors of a body corporate are accustomed to act by reason only that those directors act on advice given by him in a professional capacity.

(2) In this Chapter, “employment” means an employment such that any emoluments thereof would fall to be assessed under Schedule E, and references to persons employed by, or employees of, a body corporate include any person who takes part in the management of the affairs of the body corporate and is not a director thereof.

(3) Subject to the provisions of subsection (4) and this subsection, the employments to which this Chapter applies are employments the emoluments of which, estimated for the year of assessment in question according to the provisions of this Act and on the basis that they are employments to which this Chapter applies, and without any deduction being made under Rule 3 of Schedule 2 in respect of money expended in performing the duties thereof, are £1,500 or more:

Provided that—

(a) where a person is employed in two or more employments by the same body corporate, and the total of the emoluments of those employments, for the year of assessment in question, estimated as aforesaid, is £1,500 or more, all those employments shall be treated as employments to which this Chapter applies, and

(b) where a person is a director of a body corporate, all employments in which he is employed by the body corporate shall be treated as employments to which this Chapter applies.

(4) All the directors of, and persons employed by, a body corporate over which another body corporate has control shall be treated for the purposes of the proviso to subsection (3) (but not for any other purpose) as if they were directors of, or, as the case may be, as if the employment were an employment by, that other body corporate.

Additional information in returns under section 178.

120.—(1) Where, for the purposes of a return under section 178, a body corporate apportions expenses incurred partly in or in connection with a particular matter and partly in or in connection with other matters—

(a) the return shall contain a statement that the sum included in the return is the result of such an apportionment,

(b) the body corporate, if required so to do by notice from the inspector, shall prepare and deliver to the inspector, within the time limited by the notice, a return containing full particulars as to the amount apportioned and the manner in which and the grounds on which the apportionment has been made, and

(c) where the inspector is dissatisfied with any such apportionment of expenses, he may, for the purposes of assessment, apportion the expenses, but the body corporate may, on giving notice in writing to the inspector within twenty-one days after being notified of any such apportionment made by the inspector, appeal against that apportionment to the Special Commissioners.

(3) The provisions of this Act relating to returns under section 178 shall apply in relation to any return required under subsection (1).

Application of this Chapter.

121.—This Chapter shall not apply in relation to any body corporate unless it carries on a trade or its functions consist wholly or mainly in the holding of investments or other property.

Interpretation.

122.—(1) In the preceding provisions of this Chapter “business premises”, in relation to a body corporate, includes all premises occupied by that body for the purpose of any trade carried on by it:

Provided that, except where the reference is expressly to premises which include living accommodation, “business premises” does not include so much of any such premises as aforesaid as is used wholly or mainly as living accommodation for any of the directors of the body corporate or for any persons employed by the body corporate in any employment to which this Chapter applies.

(2) Any reference in the preceding provisions of this Chapter to anything provided for a director or employee shall, unless the reference is expressly to something provided for the director or employee himself, be construed as including a reference to anything provided for the spouse, family, servants, dependants or guests of that director or employee, and the reference in the proviso to subsection (1) to living accommodation for directors or employees shall be construed accordingly.

(3) In the preceding provisions of this Chapter, “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.

Unincorporated bodies, partnerships and individuals.

123.—(1) The preceding provisions of this Chapter shall apply in relation to unincorporated societies and other bodies as they apply in relation to bodies corporate, and, in connection with the said preceding provisions, the definition of “control” in section 122 (3) shall, with the necessary adaptations, also so apply.

(2) The preceding provisions of this Chapter shall apply in relation to any partnership carrying on any trade or profession as they would apply in relation to a body corporate carrying on a trade, if so much thereof as relates to directors of the body corporate or persons taking part in the management of the affairs of the body corporate were omitted, but—

(a) “control”, 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, and

(b) where such a partnership as aforesaid has control over a body corporate to which this Chapter applies (“control” being construed for this purpose in accordance with the definition thereof in section 122 (3))—

(i) any employment of any director of that body corporate by the partnership shall be an employment to which this Chapter applies, and

(ii) all the employments of any person who is employed both by the partnership and by the body corporate (being employments by the partnership or the body corporate) shall, for the purpose of seeing whether those employments or any of them are employments to which this Chapter applies, be treated as if they were employments by the body corporate.

(3) The provisions of subsection (2) shall apply in relation to individuals as they apply in relation to partnerships, but nothing in this subsection shall be construed as requiring an individual to be treated in any circumstances as under the control of another person.

Chapter IV

Income Tax in Respect of Certain Emoluments

Interpretation.

124.—In this Chapter, except where the context otherwise requires—

“emoluments” means anything assessable to income tax under Schedule E and references to payments of emoluments include references to payments on account of emoluments;

“employee” means any person in receipt of emoluments;

“employer” means any person paying emoluments;

“income tax month” means a month beginning on the 6th day of any of the months of April to March in any year of assessment;

“tax deduction card” means a tax deduction card in the form prescribed by the Revenue Commissioners or such other document corresponding to a tax deduction card as may be authorised by the Revenue Commissioners in any particular case.

Application.

125.—This Chapter applies to all emoluments except emoluments which are—

(a) emoluments arising from an office or employment of any class which is such that, in relation to the year 1958-59, tax on emoluments from an office or employment of that class was deductible or treated as deductible from the emoluments under any Rule, other than Rule 7 of the Rules applicable to Schedule E of the Income Tax Act, 1918.

(b) emoluments in respect of which the employer has been notified by the Revenue Commissioners that they are emoluments which arise from an office or employment and from which, in the opinion of the Revenue Commissioners having regard to the circumstances of the office or employment, the deduction of tax by reference to the provisions of this Chapter is impracticable, or

(c) emoluments in respect of which the employer has been notified by the Revenue Commissioners that they are emoluments which arise from an office or employment held by a person in the course of a trade or profession and which are or will be taken into account in computing the profits or gains of that trade or profession for the purposes of income tax.

Method of collection of tax.

126.—On the making of any payment of any emoluments to which this Chapter applies, income tax shall, subject to this Chapter and subject to and in accordance with the regulations thereunder, be deducted or repaid by the person making the payment notwithstanding that—

(a) when the payment is made, the tax has not been imposed for the year or no assessment has been made in respect of the emoluments, or

(b) the emoluments are, in whole or in part, emoluments for some year of assessment other than that during which the payment is made.

Regulations.

127.—(1) The Revenue Commissioners shall make regulations with respect to the assessment, charge, collection and recovery of income tax in respect of emoluments to which this Chapter applies or tax for any previous year of assessment remaining unpaid, and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision—

(a) for requiring any employer making any payment of emoluments to which this Chapter applies, when he makes the payment, to make a deduction or repayment of tax calculated by reference to the rate of income tax for the year and any allowances, deductions and reliefs appropriate in the case of the employee as indicated by the particulars on the tax deduction card supplied in respect of the employee by the Revenue Commissioners, and for rendering persons who are required to make any such deduction or repayment, in the case of a deduction (whether or not made), accountable for the amount of the tax, and liable to pay that amount, to the Revenue Commissioners and, in the case of a repayment, entitled, if it has been made, to be paid it, or given credit for it, by the Revenue Commissioners;

(b) for the production to and inspection by persons authorised by the Revenue Commissioners of wages sheets and other documents and records for the purpose of satisfying themselves that tax in respect of emoluments to which this Chapter applies has been and is being duly deducted, repaid and accounted for;

(c) for the collection and recovery, whether by deduction from emoluments paid in any later year or otherwise, of tax in respect of emoluments to which this Chapter applies which has not been deducted or otherwise recovered during the year;

(d) for appeals with respect to matters arising under the regulations which would not otherwise be the subject of an appeal;

(e) for the deduction of tax at the standard rate in such cases or classes of cases as may be provided for by the regulations;

(f) for requiring every employer who pays emoluments to which this Chapter applies exceeding the limits specified in subsection (5) to notify the Revenue Commissioners within the period specified in the regulations that he is such an employer;

(g) for requiring every employer who pays emoluments to which this Chapter applies exceeding the limits specified in subsection (5) to keep and maintain a register of his employees in such manner as may be specified in the regulations, and, on being required so to do by the Revenue Commissioners by notice, to deliver the register to the Revenue Commissioners within the period specified in the notice;

(h) for treating persons who are not employers as employers in such cases or classes of cases as may be provided for by the regulations.

(2) Regulations under this section shall have effect notwithstanding anything in this Act, but shall not affect any right of appeal which a person would have apart from the regulations.

(3) (a) Tax deduction cards shall be prepared with a view to securing that, so far as may be practicable—

(i) the total tax payable for the year of assessment in respect of any emoluments is deducted from the emoluments paid during that year, and

(ii) the tax deductible or repayable on the occasion of any payment of emoluments is such that the total net tax deducted since the beginning of the year of assessment bears to the total tax payable for that year the same proportion that the part of the year which ends with the date of the payment bears to the whole year.

(b) In paragraph (a)—

any reference to the total tax payable for a year shall be construed as a reference to the total tax (excluding sur-tax) estimated to be payable for the year in respect of the emoluments, subject to a provisional deduction for allowances and reliefs and subject also, if necessary, to making an addition to the said estimated amount (including a nil amount) for amounts remaining unpaid on account of income tax for any previous year of assessment and making a deduction therefrom for amounts overpaid on account of any such income tax;

the reference to the total net tax deducted shall be construed as a reference to the total tax deducted during the year by virtue of regulations made under this section, less any tax repaid by virtue of any such regulations.

(c) In making any estimation pursuant to paragraph (b) it may be assumed, in relation to any payment of emoluments, that the emoluments paid in the part of the year of assessment which ends with the making of the payment will bear to the emoluments for the whole of that year the same proportion that that part of the year bears to the whole year.

(4) Notwithstanding any other provision of this section, when stating on a tax deduction card an amount in respect of allowances, deductions and reliefs, the amount may be rounded up to a convenient greater amount and stated accordingly, and, as respects the amount of tax which is not deducted in the year of assessment as a result of such statement, the adjustment appropriate for its recovery shall be made in a subsequent year of assessment.

(5) (a) The limits referred to in paragraphs (f) and (g) of subsection (1) are emoluments at a rate equivalent to a rate of £6 a week, or in the case of an employee with other employment, £1 a week.

(b) In the case of employees paid monthly or at longer intervals, the references in paragraph (a) to a rate of £6 a week and a rate of £1 a week shall be treated as references to a rate of £26 a month and a rate of £4 10s. a month respectively.

(6) Where a deduction falls to be made in any year of assessment from emoluments to which this Chapter applies on account of income tax for any year of assessment before the year 1960-61, the employer shall not, pursuant to regulations under this section, make in the first-mentioned year any repayment of income tax.

(7) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Penalties.

128.—(1) If any person does not comply with any provision of regulations under this Chapter requiring him to send any return, statement, notification or certificate or to produce any wages sheets or other records or documents, he shall be liable to a penalty of £20, together with, in the case of a continuing non-compliance, a penalty of the like amount for every day on which the non-compliance is continued.

(2) All penalties under this section may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any fine or penalty under any Act relating to the excise.

(3) Where—

(a) a person does not comply with any provision of regulations under this Chapter requiring him to send any return, statement, notification or certificate,

(b) the provision requires compliance within a particular period, and

(c) such person continues, during a further period of two or more days, not to send the return, statement, notification or certificate, the non-compliance shall be regarded, for the purposes of subsection (1), as a non-compliance continuing on every day, other than the first, of the further period.

(4) In proceedings for recovery of a penalty under this section—

(a) a certificate signed by an officer of the Revenue Commissioners which certifies that he has inspected the relevant records of the Revenue Commissioners and that it appears from them that, during a stated period, a stated return, statement, notification or certificate was not received from the defendant shall be evidence until the contrary is proved that the defendant did not during that period send that return, statement, notification or certificate,

(b) a certificate signed by an officer of the Revenue Commissioners which certifies that he has inspected the relevant records of the Revenue Commissioners and that it appears from them that a stated return or other document was duly sent to the defendant on a stated day shall be evidence until the contrary is proved that that person received that return or other document in the ordinary course,

(c) a certificate certifying as provided for in paragraph (a) or paragraph (b) and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.

Interest.

129.—Where any amount of tax which an employer is liable under this Chapter and any regulations thereunder to pay to the Revenue Commissioners is not so paid, simple interest on the amount shall be paid by the employer to the Revenue Commissioners and such interest shall be calculated from the expiration of the period specified in the regulations for the payment of the amount and at the rate of one per cent. for each month or part of a month during which the amount remains unpaid.

Payment by means of stamps.

130.—(1) The Revenue Commissioners may make regulations enabling an employer who is required to deduct tax from emoluments to which this Chapter applies to make, subject to being authorised for the time being by the Revenue Commissioners so to do, payment of the tax deductible by means of stamps to be affixed, by the employer making the deduction, to stamp books supplied by the Revenue Commissioners.

(2) Where payment by means of stamps is authorised as aforesaid, the employer shall not be required to make a repayment of tax previously deducted from emoluments to which this Chapter applies which were earned in his or a former employment.

(3) References in section 127 to tax deduction cards shall, with respect to cases in which the use of stamp books is authorised as aforesaid, be taken as references to those books.

(4) In any case in which a stamp book, required by regulations under this section to be sent to the Revenue Commissioners during a particular period, is not so sent, or if sent, is insufficiently stamped, the tax or balance of tax (as the case may be) for which the means of payment is stamps affixed to the book shall be regarded for the purposes of sections 129 and 131 as tax for which the employer is liable by reference to the relevant income tax month or months, interest under the said section 129 being calculated as from the expiration of the said period.

(5) The provisions (including penal provisions) of the Stamp Duties Management Act, 1891, and section 65 of the Post Office Act, 1908 , shall apply to stamps referred to in this section.

(6) Regulations under this section shall not, except as regards the particular matters for which they make provision, affect the operation of any regulations under section 127.

Recovery.

131.—(1) (a) The provisions of any enactment relating to the recovery of income tax charged under Schedule E shall apply to the recovery of any amount of tax which an employer is liable under this Chapter and any regulations thereunder to pay to the Revenue Commissioners by reference to any income tax month as if the said amount had been charged on the employer under Schedule E.

(b) In particular and without prejudice to the generality of paragraph (a), this subsection applies the provisions of sections 480, 485, 486, 488 and 491.

(c) Provisions as applied by this subsection shall so apply subject to any modifications specified by regulations under section 127.

(2) Proceedings may be brought for the recovery of the total amount which the employer is liable to pay as aforesaid by reference to any income tax month without distinguishing the amounts which he is liable to pay by reference to each employee and without specifying the employees in question, and for the purposes of the proceedings the said total amount shall be one single cause of action or one matter of complaint; but nothing in this subsection shall prevent the bringing of separate proceedings for the recovery of each of the several amounts which the employer is liable to pay as aforesaid by reference to any income tax month and to his several employees.

(3) In proceedings instituted by virtue of this section for the recovery of any amount of tax—

(a) a certificate signed by an officer of the Revenue Commissioners which certifies that a stated amount of tax is due and payable by the defendant shall be evidence until the contrary is proved that that amount is so due and payable, and

(b) a certificate certifying as aforesaid and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.

(4) Any reference in this section to an amount of tax includes a reference to interest payable in the case in question under section 129.

Priority in bankruptcy.

132.—(1) There shall be included among the debts which, under section 4 of the Preferential Payments in Bankruptcy (Ireland) Act, 1889, are to be paid in priority to all other debts in the distribution of the property of a bankrupt, arranging debtor, or person dying insolvent, so much as is unpaid of the employer's liability for the period of twelve months next before the date on which the order of adjudication of the bankrupt was made, the petition of arrangement of the debtor was filed, or, as the case may be, the person died insolvent.

(2) For the purposes of this section “employer's liability for the period of twelve months” means all sums which an employer was liable under this Chapter and any regulations thereunder to deduct from emoluments to which this Chapter applies paid by him during the period of twelve months mentioned in this section, reduced by any amounts which he was under this Chapter and any regulations thereunder liable to repay during the same period, and subject to the addition of interest payable under section 129.

Supplemental provisions.

133.—(1) No assessment under Schedule E for any year of assessment need be made in respect of emoluments to which this Chapter applies except where—

(a) the person assessable, by notice in writing given to the inspector within five years from the end of the year of assessment, requires an assessment to be made,

(b) the emoluments paid in the year of assessment are not the same in amount as the emoluments which fall to be treated as the emoluments for that year, or

(c) there is reason to suppose that the emoluments would, if assessed, fall to be taken into account in computing the total income for sur-tax purposes of a person who is liable to sur-tax or would be so liable if an assessment were made in respect of the emoluments.

(2) Where an employer pays to the Revenue Commissioners any amount of tax which, pursuant to this Chapter and any regulations thereunder, he has deducted from emoluments, he shall be acquitted and discharged of the sum represented by the payment as if he had actually paid that sum to the employee.

PART VI

Differentiation and Graduation of Tax by Means of Reliefs

Earned income relief.

134.—An individual who makes, in the manner prescribed by this Act, a claim in that behalf and makes a return in the prescribed form of his total income shall, for the purposes of ascertaining the amount of his assessable income for the purposes of income tax, be allowed a deduction from the amount of his earned income as estimated in accordance with this Act of a sum equal to one-fourth of that income, but not exceeding, in the case of any individual, the sum of £500.

Allowances from unearned income of persons aged sixty-five or upwards.

135.—(1) An individual who, in the manner prescribed by this Act, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves that at any time during the year of assessment either he or, in the case of a married man, his wife living with him was of the age of sixty-five years or upwards shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax be allowed a deduction from the amount of his unearned income of a sum equal to one-fourth of the amount of that income:

Provided that—

(a) in case the individual is entitled to a deduction exceeding £350 under section 134—

(i) in case that deduction is £500, there shall be no deduction under this section, and

(ii) in any other case, the deduction under this section shall not be greater than the amount by which the deduction under section 134 falls short of £500, and

(b) in any other case, the deduction under this section shall not be greater than £150.

(2) For the purpose of subsection (1) the amount of the unearned income of any individual shall be taken to be the amount of his total income diminished by the amount of his earned income.

(3) The provisions of Schedule 4 and of paragraph IX of Schedule 18 shall, with any necessary modifications, apply in relation to deductions under this section.

(4) In this section “earned income” and “total income” mean respectively earned income as estimated in accordance with the provisions of this Act and total income from all sources as so estimated.

Relief for small incomes.

136.—(1) In this section—

“total income” means total income from all sources as estimated in accordance with the provisions of this Act;

“relevant income” means, in relation to any individual, his total income exclusive of any part thereof which arises to him by virtue or in consequence of a disposition within the meaning of section 442, and which, if subparagraphs (iii) and (iv) of section 439 (1) had been omitted, would, by virtue of Chapter I of Part XXVIII, be deemed to be income of the person by whom the disposition was made.

(2) Subject to the provisions of this section, an individual who, in the manner prescribed by this Act, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves that his total income for the year of assessment does not exceed £450, shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his relevant income of a sum equal to one-fourth of the amount of that income.

(3) Subject as aforesaid, an individual not entitled to a deduction under subsection (2) shall be entitled to have the amount of the income tax payable in respect of his total income reduced, where necessary, so as not to exceed a sum equal to the aggregate of the two following amounts, that is to say, the amount of the tax which would have been payable if his total income had amounted to, but had not exceeded, £450 and one-half of the amount by which his total income exceeds £450.

(4) For the purposes of subsection (3), the computation of the tax which would have been payable if the individual's total income had amounted to, but had not exceeded, £450 shall be made—

(a) in a case in which the individual's relevant income amounts to not less than £450, on the basis that the income of £450 consisted wholly of relevant income, and

(b) in a case in which the individual's relevant income is less than £450, on the basis that the income of £450 included the whole of the relevant income.

(5) An individual shall not be entitled to any deduction or relief under this section if he is entitled to a deduction under section 135 and any deduction or relief under this section shall be in substitution for and not in addition to the deduction under section 134.

(6) The provisions of Schedule 4 and of paragraph IX of Schedule 18 shall, with any necessary modifications, apply in relation to deductions or relief under this section.

Deduction allowed in ascertaining taxable income.

137.—(1) An individual who, in the manner prescribed by this Act, makes a claim in that behalf and who makes a return in the prescribed form of his total income shall be entitled for the purpose of ascertaining the amount of the income on which he is to be charged to income tax (in this Act referred to as “the taxable income”) to have such deductions as are specified in sections 138 to 143 made from his assessable income.

(2) The provisions of Schedule 4 and of paragraph IX of Schedule 18 shall apply for the purpose of claims for any such deductions as aforesaid.

Personal relief.

138.—(1) The claimant, if he proves that for the year of assessment he has his wife living with him, or that his wife is wholly maintained by him during the year of assessment, and that he is not entitled in computing the amount of his income for that year for the purposes of this Act to make any deduction in respect of the sums paid for the maintenance of his wife, shall be entitled to a deduction of £394, and in any other case to a deduction of £234.

(2) Where, but for this subsection, the claimant would be entitled to a deduction of £234 under subsection (1), then, if the claimant proves that in the year of assessment he or she is a widower or a widow, the claimant shall be entitled to a deduction of £259 in lieu of the said deduction of £234.

(3) If the total income of the claimant includes any earned income of his wife the deduction to be allowed under this section shall be increased by an amount equal to three-fourths of the amount of that earned income but not exceeding in any case £45.

Person taking charge of children of widower, widow or married man living apart from wife.

139.—(1) If the claimant proves that he is a widower and that for the year of assessment a person being a female relative of his or of his deceased wife is resident with him for the purpose of having the charge and care of any child of his, or he proves that he has no female relative of his own or of his deceased wife who is able or willing to take such charge and that he has employed some other female person to undertake the same, he shall, subject as hereinafter provided, be entitled to a deduction of £100 in respect of that female relative or other female person:

Provided that—

(a) no deduction shall be allowed under this section unless the claimant proves that no other individual is entitled to a deduction in respect of the female relative under the provisions of this Part or, if any other individual is so entitled, that the other individual has relinquished his claim thereto; and

(b) no deduction shall be allowed under this section where the female relative is a married woman living with her husband, and the husband has claimed and been allowed the higher deduction under section 138 (1).

(2) In this section “child” means a child in respect of whom a deduction is allowed under this Part.

(3) This section shall apply to a claimant being a widow as it applies to a claimant being a widower, with the substitution of “her deceased husband” for “his deceased wife”.

(4) This section shall also apply to a claimant being a married man, whose wife is not living with him and who is not entitled to the higher deduction under section 138 (1) as it applies to a claimant being a widower, save that “his wife” shall be substituted for “his deceased wife”.

Relative taking charge of unmarried person's brother or sister.

140.—If the claimant proves—

(a) that he is unmarried and that he has living with him either his mother, being a widow or a person living apart from her husband, or some other female relative, for the purpose of having the charge and care of any brother or sister of his, being a child in respect of whom a deduction is allowed under this Part, and that he maintains the mother or other relative at his own expense; and

(b) that neither he nor any other individual is entitled to a deduction in respect of the same person under any of the other provisions of this Part, or if any other individual is entitled to any such deduction that the other individual has relinquished his claim thereto,

he shall be entitled to a deduction of £100.

Children.

141.—(1) If the claimant proves that he has living at any time during the year of assessment any child who is either under the age of sixteen years or who, if over the age of sixteen years at the commencement of that year, is receiving full-time instruction at any university, college, school, or other educational establishment, he shall, subject to the provisions of this section, be entitled in respect of each such child to a deduction and such deduction, in the case of a child shown by the claimant to have been over the age of eleven years at the commencement of the year of assessment, shall be of the amount of £150 and, in any other case, shall be of the amount of £120.

The expression “child” in this provision includes a stepchild and an illegitimate child whose parents have married each other after his birth and a child in respect of whom an adoption order under the Adoption Act, 1952 , is in force.

(2) If the claimant proves that for the year of assessment he has the custody of and maintains at his own expense any child who is under the age of sixteen years, or who, if over the age of sixteen years at the commencement of that year, is receiving such full-time instruction as aforesaid, and that neither he nor any other individual is entitled to a deduction in respect of the same child under the foregoing provisions of this section or under any of the other provisions of this Part, or, if any other individual is entitled to such a deduction, that that other individual has relinquished his claim thereto, he shall be entitled in respect of the child to the same deduction as if the child were a child of his.

(3) The references in subsection (1) and (2) to a child receiving full-time instruction at an educational establishment shall include references to a child undergoing training by any person (hereafter in this subsection referred to as the employer) for any trade or profession in such circumstances that the child is required to devote the whole of his time to the training for a period of not less than two years.

For the purpose of a claim in respect of a child undergoing training the inspector may require the employer to furnish particulars with respect to the training of the child in such form as may be prescribed by the Revenue Commissioners.

(4) No deduction shall be allowed under this section in respect of any child who is entitled in his own right to an income exceeding £80 a year, except that if the amount of the excess is less than the deduction which apart from this subsection would be allowable, a deduction reduced by that amount shall be allowed.

Provided that in calculating the income of the child for the purposes of the foregoing provision no account shall be taken of any income to which the child is entitled as the holder of a scholarship, bursary, or other similar educational endowment.

(5) If any question arises as to whether any person is entitled to an allowance under this section in respect of a child who is over the age of sixteen years, as being a child who is receiving such full-time instruction as aforesaid, the Revenue Commissioners may consult the Minister for Education.

(6) Where, for any year of assessment, two or more individuals are or would, but for the provisions of this subsection, be entitled under this section to relief in respect of the same child, the following provisions shall have effect, that is to say:—

(a) only one deduction under this section shall be allowed in respect of such child;

(b) where such child is maintained by one parent only, that parent only shall be entitled to claim such deduction;

(c) where such child is maintained jointly by both parents, each parent shall be entitled to claim such part of such deduction as is proportionate to the amount expended by him or her on the maintenance of such child;

(d) in ascertaining for the purposes of this subsection whether a parent maintains a child and, if so, to what extent, any payment made by such parent for or towards the maintenance of such child which such parent is entitled to deduct in computing his or her total income for the purposes of this Act shall be deemed not to be a payment for or towards the maintenance of such child.

Dependent relatives.

142.—(1) If the claimant proves that he maintains at his own expense any person, being a relative of his or of his wife who is incapacitated by old age or infirmity from maintaining himself, or his or his wife's widowed mother, whether incapacitated or not, and being a person whose total income from all sources is less than £180 a year, he shall be entitled to a deduction of £60 in respect of each person whom he so maintains, and a like deduction shall be made in the case of a claimant who, by reason of old age or infirmity, is compelled to depend upon the services of a person (being a person whose total income from all sources is less than £180 a year and being a son or daughter of the claimant) resident with and maintained by him or her:

Provided that each of the foregoing provisions of this subsection shall have effect, in a case in which the total income from all sources of the person in respect of whom the deduction is to be made exceeds £120 a year, as if, instead of specifying a deduction of £60, it specified a deduction of that amount reduced by the amount of the excess.

(2) Where two or more persons jointly maintain any such person as aforesaid, the deduction to be made under this section shall be apportioned between them in proportion to the amount or value of their respective contributions towards the maintenance of that person.

(3) This section shall apply to a claimant being a female person as it applies to a claimant being a male person with the substitution of “husband” for “wife”.

Premiums on post-1916 insurances and certain other payments.

143.—(1) Subject to the provisions of this section and of section 152, any claimant—

(a) who has paid any such premium as is specified in subsection (2); or

(b) who is under any statute or under the terms or conditions of his employment liable to the payment of any sum or to the deduction from his salary or stipend of any sum for the purpose of securing a deferred annuity to his widow or provision for his children after his death,

shall be entitled, for the purpose of ascertaining the amount of the income on which he is to be charged to tax (excluding sur-tax), to have the deduction specified in subsection (3) made from his assessable income.

(2) The premiums referred to in subsection (1) (a) are any premiums paid by the claimant on a policy of insurance or on a contract for a deferred annuity where—

(a) the insurance or contract was made after the 22nd day of June, 1916—

(i) with any insurance company legally established in the State or in Northern Ireland or in Great Britain or in any other country to which the repealed enactments corresponding to this section would apply but for their repeal, or lawfully carrying on business in the State; or

(ii) with a registered friendly society; or

(iii) in the case of a deferred annuity, with the National Debt Commissioners; and

(b) the insurance, or, as the case may be, the deferred annuity, is on the life of the claimant or on the life of his wife; and

(3) The deduction to be made from the assessable income of the claimant shall be—

(a) where the insurance or contract referred to in subsection (2) was made after the 21st day of May, 1953, with any insurance company or friendly society, being a company or society which is registered in the State and managed and controlled therein, an amount equal to two-thirds of the premium paid by him;

(b) in any other case an amount equal to one-half of the premium paid by him or, as the case may be, of the sum paid by him or deducted from his salary or stipend.

(4) Where—

(a) a premium has been paid for an insurance, or a contract for a deferred annuity, made with an insurance company, and

(b) a deduction in respect of the premium could be made under subsection (1) but for the fact that the company is not such a company as is referred to in subsection (2) (a) (i),

that fact shall be disregarded, and a deduction in respect of the premium may be made under subsection (1) accordingly, if—

(i) the claimant is resident in the State but has previously been resident outside the State for a continuous period of not less than ten years,

(ii) the insurance or contract was made before the continuous period of residence outside the State ended, and

(iii) either there is no income arising from any security or possession in any place outside the State or, where there is income so arising, section 76 (1) applies to the computation of tax in respect of that income.

(5) No deduction shall, as regards insurances or contracts for deferred annuities—

(a) be given except in respect of premiums or other payments payable on policies for securing a capital sum on death, whether in conjunction with any other benefit or not; or

(b) be given in respect of premiums or payments payable during the period of deferment in respect of a policy of deferred assurance:

Provided that this subsection shall not affect premiums or payments payable—

(i) on policies or contracts made in connection with any superannuation or bona fide pension scheme for the benefit of the employees of any employer or of persons engaged in any particular trade, profession or business or for the benefit of the wife or widow of any such employee or person or of his children or other dependants; or

(ii) on any policy taken out by a teacher in a secondary school pending the establishment of a superannuation or pension scheme for those teachers.

(6) Where a premium is paid by a wife out of her separate income in respect of an insurance on her own life or the life of her husband or a contract for any deferred annuity on her own life or the life of her husband, the same deduction shall be made as if the premium were a premium paid by her husband for an insurance on his own life or for a contract for a deferred annuity on his own life, and this section shall apply accordingly.

(7) References in this Act to relief in respect of life assurance premiums shall be construed as including references to deductions under the foregoing subsections of this section.

Exemption where total income does not exceed £240, and marginal relief.

144.—(1) (a) Any individual who, in the manner prescribed by this Act, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves that his total income for the year of assessment does not exceed £240 shall be entitled to exemption from income tax.

(b) Any individual who would, but for the fact that his total income exceeds £240, be entitled to exemption as provided in paragraph (a), shall be entitled to have the amount of income tax payable in respect of his total income, if that amount would but for the provisions of this paragraph exceed a sum equal to three-fifths of the amount by which his total income exceeds £240, reduced to that sum.

(2) The provisions of Schedule 4 and of paragraph IX of Schedule 18 shall, with any necessary modifications, apply in relation to exemptions from or reductions of tax under this section.

(3) In this section “total income” means a total income from all sources as estimated in accordance with the provisions of this Act.

Insurance against expenses of illness.

145.—(1) In this section—

“authorised insurer” means any person lawfully carrying on in the State such business of insurance as is referred to in subsection (2);

“total income” means total income from all sources as estimated in accordance with the provisions of this Act.

(2) If an individual makes a claim in that behalf in the manner prescribed by this Act, makes a return in the prescribed form of the total income of the individual and proves that, in the year preceding the year of assessment, the individual, or, if the individual is a married man, his wife, has made a payment to an authorised insurer under a contract of insurance which provides specifically, whether in conjunction with other benefits or not, for the reimbursement or discharge, in whole or in part, of actual medical, surgical or nursing expenses (including the cost of maintenance at a hospital, nursing home or sanatorium) resulting from sickness of or accident to the individual or the spouse of the individual or children or other dependants of the individual or of the spouse of the individual, then—

(a) where the payment covers no benefits other than such reimbursement or discharge, the full amount of the payment shall be deducted from or set off against any income for the year of assessment of the individual, if the individual made the payment, or of the wife of the individual, if she made the payment, and

(b) where the payment covers benefits other than such reimbursement or discharge, a like relief shall be granted in respect of so much of the payment as is referable to such reimbursement or discharge,

and tax shall, where necessary, be discharged or repaid accordingly and the total income of the individual for the year of assessment shall be calculated accordingly for all the purposes of this Act.

(3) Where an amount for deduction from or set off against income of one of the spouses is ascertained in accordance with subsection (2), then—

(a) if there is no income of the spouse for the year of assessment in relation to which relief under the said subsection can be given, the relief may be given in relation to income of the other spouse for that year, and

(b) if the amount ascertained as aforesaid exceeds the income of the spouse for the year of assessment, the excess may be deducted from or set off against any income of the other spouse for that year.

(4) Where relief is given under this section, no relief or deduction under any other provision of this Act shall be given or allowed in respect of the payment or part of a payment (as the case may be).

(5) The provisions of Schedule 4 and of paragraph IX of Schedule 18 shall, with any necessary modifications, apply in relation to relief under this section.

General provisions relating to allowances, deductions and reliefs.

146.—A claimant shall not be entitled to allowance or deduction or relief under sections 134 to 145 in respect of any income the tax on which he is entitled to charge against any other person, or to deduct, retain, or satisfy out of any payment which he is liable to make to any other person.

Basis of assessing income under Schedule A.

147.—For the purpose of any claim for an allowance or deduction under sections 134 to 145 the income arising from the ownership of lands, tenements or hereditaments assessable under Schedule A shall, subject to any allowance, reduction, or relief granted under this Act, be deemed to be the annual value thereof estimated in accordance with the provisions applicable to Schedule A and the income arising from the occupation of lands, tenements and hereditaments assessable under Schedule B shall, subject to any allowance, reduction or relief granted under this Act, be deemed the assessable value thereof estimated in accordance with the provisions applicable to Schedule B, and where a claimant is both owner and occupier of the last mentioned lands, tenements and hereditaments, the amount of the annual value under Schedule A, added to the amount of the assessable value under Schedule B shall be deemed to be the income arising from those lands, tenements or hereditaments.

Partners, joint tenants: separate claims.

148.—The following persons having joint interests, that is to say—

(a) coparceners, joint tenants, or tenants in common of the profits of any property; and

(b) joint tenants, or tenants of land or tenements in partnership, being in the actual and joint occupation thereof in partnership, who are entitled to the profits thereof in shares,

may claim any allowance or deduction under sections 134 to 145 according to their respective shares and interests, and any such claims may be dealt with in the same manner as in the case of several interests:

Provided that profits arising from the occupation of lands shall not be separately charged if the lands are let or underlet without the lessor relinquishing the possession thereof or if the lessee is not exclusively in the possession and occupation of the lands.

Method of allowance.

149.—Except as otherwise provided, any allowance or deduction under sections 134 to 145 shall be given either by discharge or reduction of the assessment, or by repayment of the excess which has been paid, or by all or any of those means, as the case may require.

Total income where assessment reduced.

150.—Where relief has been granted for any year of assessment under any provisions of this Act providing for the reduction of an assessment on any source of income in cases where the profits of the year of assessment fall short, the amount of the assessment as reduced shall be deemed to be the income from that source in ascertaining the total income from all sources for that year for the purpose of any claim for allowance or deduction under sections 134 to 145.

Relief for premiums on pre-1916 insurances.

151.—(1) Subject to the provisions of this section and of section 152, any claimant who has paid any such premium as is specified in subsection (2) shall be entitled to have the amount of tax payable by him reduced by a sum representing tax at the appropriate rate on the amount of the premium paid by him.

(2) The premiums referred to in subsection (1) are any premiums paid by a claimant on a policy of insurance or on a contract for a deferred annuity where—

(a) the insurance or contract was made on or before the 22nd day of June, 1916—

(ii) with a registered friendly society; or

(iii) in the case of a deferred annuity, with the National Debt Commissioners; and

(b) the insurance, or, as the case may be, the deferred annuity, is on the life of the claimant or on the life of his wife; and

(3) For the purposes of this section “the appropriate rate” means—

(a) where the total income of the claimant from all sources estimated in accordance with the provisions of this Act does not exceed £1,000, the lesser of the two following rates:

(i) half the standard rate of tax,

(ii) the rate obtained by dividing the tax payable by the person referred to in subsection (1), before deduction of any relief under this section or of any double taxation relief under any agreement between the Government and the Government of any other state, but after reduction in respect of any tax which he is entitled to charge against any other person, by the amount of his taxable income, which for this purpose shall be deemed to be reduced by the amount of any income the income tax upon which he is entitled to charge as aforesaid;

(b) where the total income of the claimant from all sources estimated as aforesaid exceeds £1,000 but does not exceed £2,000, three-fourths of the standard rate of tax;

(c) where the total income of the claimant from all sources estimated as aforesaid exceeds £2,000, the standard rate of tax.

(4) Where a premium is paid by a wife out of her separate income in respect of an insurance on her own life or the life of her husband or a contract for any deferred annuity on her own life or the life of her husband the same allowance of tax shall be made as if the premium were a premium paid by her husband for an insurance on his own life or for a contract for a deferred annuity on his own life and this section shall apply accordingly.

(5) Where the tax ultimately payable by any claimant after deducting the allowance under this section is greater than the amount of tax which would be payable if the total income of that person exceeded £1,000 or £2,000, as the case may be, the allowance under this section shall be increased by a sum representing the amount by which tax at one-fourth of the standard rate on the amount of the premiums in respect of which the allowance is made exceeds the amount of the tax at the standard rate on the amount by which the total income falls short of £1,000 or £2,000, as the case may be.

Life assurance relief—general provisions.

152.—(1) The aggregate of the premiums or other sums in respect of which relief is given to any person under sections 143 and 151 shall not exceed one-sixth of the total income of the person from all sources estimated in accordance with the provisions of this Act.

(2) No relief under section 143 or 151 in respect of any premium or other payment payable on a policy for securing a capital sum on death (whether in conjunction with any other benefit or not) shall be given in respect of so much of the premium or other payment as exceeds seven per cent. of the actual capital sum assured, or, where special terms apply to the insurance on the life of the insured person, of the prescribed capital sum, and, in calculating any such capital sum, or the prescribed capital sum, no account shall be taken of any sum payable on the happening of any other contingency, or of the value of any premiums agreed to be returned, or of any benefit by way of bonus, or otherwise, which is to be or may be received either before or after death, either by the person paying the premium, or by any other person, and which is not the sum actually assured or the prescribed capital sum.

In this subsection—

“special terms” in relation to an insurance means terms which, by reason of special circumstances concerning the health of the insured person, are less favourable as to the amounts of the premiums payable or as to the capital sum payable on death, than those which would otherwise be available from the same insurer;

“the prescribed capital sum” means, in relation to an insurance (in this definition referred to as the said insurance), to which special terms apply, on the life of an insured person, the capital sum which would have been payable by the insurer on the death of that person by virtue of an insurance to which special terms did not apply and which, except as regards the capital sum payable on death, was in all respects the same as the said insurance.

(3) No relief under section 143 or 151 shall be given in respect of the excess over £100 of the aggregate of all premiums and payments which are payable for securing any benefits other than those mentioned in subsection (2).

(4) (a) War insurance premiums shall not be taken into account in calculating the limits of one-sixth of total income from all sources, or of seven per cent., or of £100 mentioned in this section.

(b) In this subsection “war insurance premiums” means any additional premium or other sum paid in order to extend an existing life insurance policy to risks arising from war or war service abroad, and any part of any premium or other sum paid in respect of a life insurance policy covering those risks, or either of them, which appears to the Commissioners to whom the claim for relief is made to be attributable to those risks, or either of them.

(5) No relief under section 143 or 151 shall be given for any year of assessment in respect of a payment if for that year a deduction—

(a) is allowable under section 222, or

(b) is allowable under section 233 (1)

in respect of that payment or in respect of a similar payment made in the year preceding the year of assessment.

(6) If any person entitled to relief under section 151 is charged to tax under any Schedule and has paid that tax, or has paid or has been charged with tax by deduction or otherwise, he shall, on a claim being made to the Special Commissioners, and on production to them of the receipt for his payment, and proof of the facts to their satisfaction, be entitled to repayment of the excess tax which he has paid or with which he has been charged as aforesaid.

Non-residents.

153.—(1) Save as is otherwise provided by this section, the following provisions shall have effect in the case of an individual who is not resident in the State—

(a) he shall not be entitled to any allowance in respect of earned income under section 134;

(b) he shall not be entitled to any deduction from unearned income under section 135;

(d) he shall not be entitled to any of the deductions from assessable income provided for by sections 138 to 143;

(e) he shall not be entitled to any relief under section 151.

(2) Where an individual who is not resident in the State proves to the satisfaction of the Revenue Commissioners—

(a) that he is a citizen of Ireland, or

(b) that he is resident outside the State for the sake or on account of his health or the health of a member of his family resident with him or because of some physical infirmity or disease in himself or any such member of his family, and that, previous to such residence outside the State, he was resident in the State, or

(c) that he is a citizen, subject, or national of a country of which the citizens, subjects, or nationals are for the time being exempted by an Order made under section 10 of the Aliens Act, 1935 , from any provision or provisions of that Act or of an aliens order made thereunder, or

(d) that he is a person to whom one of the paragraphs (a) to (e) of the proviso to section 24 of the Finance Act, 1920 , applied in respect of the year ending on the 5th day of April, 1935, or any previous year of assessment,

subsection (1) shall not apply to that individual, but no such allowance, deduction, or other benefit as is mentioned in the said subsection shall, in the case of that individual, be so given as to reduce the amount of the income tax payable by him below the amount which bears the same proportion to the amount of tax which would be payable by him if the tax were chargeable on his total income from all sources (including income which is not subject to Irish income tax) as the portion of his income which is subject to Irish income tax bears to his total income from all sources.

(3) Any person who is aggrieved by a decision of the Revenue Commissioners under this section may appeal therefrom to the Special Commissioners.

Relief for income accumulated under trusts.

154.—Where in pursuance of the provisions of any will or settlement any income arising from any fund is accumulated for the benefit of any person contingently on his attaining some specified age or marrying, and the aggregate amount in any year of assessment of that income and the income from any other fund subject to the like trusts for accumulation and of the total income of that person from all sources (hereinafter referred to as “the aggregate yearly income”) is of such an amount only as would entitle an individual either to total exemption from tax or to relief from tax, that person shall, on making a claim for the purpose within six years after the end of the year of assessment in which the contingency happens, be entitled, on proof of the claim in manner prescribed by Schedule 4 and paragraph IX of Schedule 18, to have repaid to him on account of the tax which has been paid in respect of the income during the period of accumulation a sum equal to the aggregate amount of relief to which he would have been entitled if his total income from all sources for each of the several years of the said period had been equal to the aggregate yearly income for that year; but in calculating that sum a deduction shall be made in respect of any relief already received.

PART VII

Administration

Revenue Commissioners.

155.—(1) All duties of income tax shall be under the care and management of the Revenue Commissioners.

(2) The Commissioners may do all such acts as may be deemed necessary and expedient for raising, collecting, receiving, and accounting for the tax in the like and as full and ample a manner as they are authorised to do with relation to any other duties under their care and management, and, unless the Minister for Finance otherwise directs, shall appoint such officers and other persons for collecting, receiving, managing, and accounting for any duties of income tax as are not required to be appointed by some other authority.

(3) All such appointments shall continue in force, notwithstanding the death, or ceasing to hold office, of any Revenue Commissioner, and the holders shall have power to execute the duties of their respective offices, and to enforce, in the execution thereof, all laws and regulations relating to the tax in every part of the State.

(4) The Commissioners may suspend, reduce, discharge, or restore, as they see cause, any such officer or person.

(5) Any act or thing required or permitted by this or any other statute to be done by the Revenue Commissioners in relation to the tax may be done by any one Revenue Commissioner.

Special Commissioners.

156.—(1) The Revenue Commissioners, together with such other persons as the Minister for Finance by warrant may from time to time appoint, shall be commissioners for the special purposes of the Income Tax Acts (in this Act referred to as “Special Commissioners”), and shall, by virtue of their office and appointment, respectively, and without other qualification, have authority to execute such powers, and to perform such duties, as are assigned to them by this Act.

(2) Special Commissioners shall be allowed such sums in respect of salary and incidental expenses as the Minister for Finance directs.

(3) The Minister for Finance shall cause an account of all appointments of Special Commissioners and their salaries to be laid before each House of the Oireachtas within twenty days of their appointment or, in the case of a House not then sitting, within twenty days after the next sitting of that House.

(4) Anything required under this Act to be done by the Special Commissioners or any other commissioners may, save as otherwise expressly provided by this Act, be done by any two or more commissioners.

Governor and directors of Bank of Ireland.

157.—For the purpose of assessing and charging income tax in the cases mentioned in this section the Governor and directors of the Bank of Ireland shall be commissioners, and shall have all the necessary powers for that purpose, and shall make assessments under and subject to the provisions and rules of this Act, that is to say in respect of—

(a) interest, annuities, dividends and shares of annuities, and the profits attached to the same, payable to the Bank out of the public revenue of the State;

(b) interest, annuities, dividends, and shares of annuities, entrusted to the Bank for payment;

(d) all other profits chargeable with tax arising within any office or department under the management or control of the Bank.

Assessment of public offices.

158.—If the Minister for Finance determines that, by reason of special circumstances existing in any particular public office, it is not expedient that the powers and duties of assessing and charging income tax in relation to that office or any one or more of such powers and duties should be exercised and performed in relation to that office by the inspector or other officer appointed in that behalf, the Revenue Commissioners shall appoint such officers or persons as may be approved of by the Minister for Finance to exercise such powers and duties in relation to that office.

Declarations to be made by commissioners.

159.—The respective commissioners for executing this Act in relation to offices and employments of profit and pensions and stipends shall, as soon as practicable after their appointment, meet and make and subscribe the declaration contained in Part II of Schedule 17, and may respectively elect a clerk and assessors, and if the tax cannot be deducted at the department of office of the commissioners or at the office for which they act, they may, from among the officers in their respective departments, appoint separate assessors and collectors for each such department.

Disqualification of commissioners in cases of personal interest.

160.—(1) Every commissioner acting in the execution of this Act shall be chargeable with tax in the same manner as any other person, but shall take no part in the proceedings, and shall not be present, when any assessment, statement or schedule is under consideration, or any controversy or appeal is being determined, with reference to any case in which he is interested, either in his own right or in the right of any other person as his agent, except during the hearing of an appeal for the purpose of being examined orally by the commissioners, and he shall withdraw during the consideration and determination of the controversy or appeal.

(2) A commissioner who, in any such case, takes any part in the determination of any such controversy or appeal, or fails to withdraw, shall incur a penalty of £50.

Inspectors of taxes.

161.—(1) The Minister for Finance may appoint inspectors of taxes, and all such inspectors and all other officers or persons employed in the execution of this Act shall observe and follow the orders, instructions and directions of the Revenue Commissioners.

(2) The Minister for Finance may fix such salaries and allowances for the remuneration of inspectors, and all other officers or persons employed in the execution of this Act as the Minister for Finance thinks fit, and may discharge such incidental charges and expenses in connection therewith as the Minister for Finance may think reasonable.

(3) An inspector who—

(a) knowingly or wilfully, through favour, undercharges or omits to charge any person; or

(b) is guilty of any fraudulent, corrupt, or illegal practices in the execution of his office,

shall, for any such offence, incur a penalty of £100, and on conviction shall be discharged from his office.

Collector-General.

162.—(1) There shall be a Collector-General, who shall be appointed by the Revenue Commissioners from their officers and shall hold such office at their will and pleasure.

(2) The Collector-General shall collect and levy the tax from time to time charged in all assessments to income tax and sur-tax of which particulars have been transmitted to him under section 187.

(3) (a) The Revenue Commissioners may nominate persons to exercise on behalf of the Collector-General and at his direction the powers contained in sections 480 and 481.

(b) Those powers, as well as being exercisable by the Collector-General, shall also be exercisable on his behalf and at his direction by persons nominated under this subsection.

(c) A person shall not be nominated under this subsection unless he is an officer or employee of the Revenue Commissioners.

(4) If and so long as the office of Collector-General is vacant or the holder of that office is unable through illness, absence or other cause to fulfil his duties, a person nominated in that behalf by the Revenue Commissioners from their officers shall act as the Collector-General, and any reference in this or any other Act to the Collector-General shall be construed as including, where appropriate, a reference to a person nominated under this subsection.

(5) The Revenue Commissioners may revoke a nomination under this section.

Declaration on taking office.

163.—(1) Every person appointed to one of the offices named in Part I of Schedule 17 shall, before he begins to act in the executtion of this Act so far as relates to the tax under Schedule D, make and subscribe the declaration therein contained, in respect of his office.

(2) The declaration may be made before any Special Commissioner.

(3) A person who acts in the execution of his office in relation to the tax under Schedule D (otherwise than in respect of any such declaration made before him) before he has made the prescribed declaration shall forfeit the sum of £100.

Administration of oaths.

164.—(1) A Peace Commissioner may administer an oath to be taken before a commissioner by any officer or person in any matter touching the execution of this Act.

(2) A Special Commissioner may administer an oath to be taken before the Special Commissioners under this Act by any officer or person in any matter touching the execution of this Act.

Forms.

165.—Every assessment, duplicate, charge, bond, warrant, notice of assessment or of demand, or other document required to be used in assessing, charging, collecting and levying tax shall be in accordance with the forms prescribed from time to time in that behalf by the Revenue Commissioners, and a document in the form prescribed and supplied or approved by them shall be valid and effectual.

Exercise of powers, etc., under this Act.

166.—(1) The Revenue Commissioners shall have all the jurisdictions, powers and duties in relation to tax under this Act which they had before the passing of this Act.

(2) Anything required under this Act to be done by the Minister for Finance may be signified under the hand of the Secretary, a Deputy Secretary or an assistant secretary of the Department of Finance.

PART VIII

Returns and Assessment, Provision Against Double Assessment, and Relief in Respect of Error or Mistake

Chapter I

Returns and Assessment

General notice to deliver lists and statements.

167.—(1) The Revenue Commissioners shall in each year of assessment cause general notice to be given, requiring every person who, by this Act, is required to deliver any list, declaration or statement to make out and deliver such list, declaration or statement to the inspectors or to the said Revenue Commissioners within such time as shall be limited by such notice, not being less than twenty-one days from the giving thereof.

(2) The said general notice shall in each year be given by causing the same to be inserted once in Iris Oifigiúil and once at least in each of two daily newspapers published in the State and such insertions shall be deemed to be sufficient compliance with subsection (1) and to be good service of such general notice on all persons concerned.

Particular notice to persons chargeable.

168.—(1) The inspectors shall, within the time directed by the precept of the Special Commissioners, give a particular notice to every person chargeable, within the limits wherein they act, requiring him, within such time as shall be limited by the precept, to prepare and deliver to the inspectors all such lists, declarations and statements as are required by this Act to be delivered.

(2) A particular notice may be given either personally, or by leaving a notice at the dwelling-house, place of residence or place of business of the person chargeable, or on the premises to be charged by the assessment.

Returns by persons chargeable.

169.—(1) Every person chargeable under this Act, when required to do so by any general or particular notice given in pursuance of this Act, shall, within the period limited by such notice, prepare and deliver to the inspector, a statement in writing as required by this Act, signed by him, containing—

(a) the annual value of all lands and tenements in his occupation;

(b) the amount of the profits or gains arising to him, from each and every source chargeable according to the respective schedules, estimated for the period and according to the provisions of this Act.

(2) To the said statement shall be added a declaration that such values or amounts are estimated in respect of all the sources of income mentioned in this Act, describing the same, after deducting only such sums as are allowed.

(3) Every such statement shall be made exclusive of any interest of money or other annual payment arising out of the property of any other person charged in respect thereof.

(4) Every person upon whom a particular notice has been served by an inspector requiring him to deliver a statement of any profits, gains, or income in respect of which he is chargeable under Schedule D or Schedule E, shall deliver a statement in the form required by the notice, whether or not he is so chargeable:

Provided that the penalty inflicted upon any person proceeded against for not complying with this provision who proves that he was not chargeable to tax, shall not exceed £5 for any one offence.

Persons acting for incapacitated persons and non-residents.

170.—(1) Every person acting in any character on behalf of any incapacitated person or person not resident in the State who, by reason of such incapacity or non-residence in the State, cannot be personally charged under this Act, shall, whenever required to do so by any general or particular notice, within the like period, and in any district in which he may be chargeable on his own account, deliver such a statement as is described in section 169 of the profits or gains in respect of which the tax is to be charged on him on account of that other person, together with the prescribed declaration.

(2) Where two or more such persons are liable to be charged for the same person—

(a) one statement only shall be required to be delivered which may be made by them jointly, or by any one or more of them; and

(b) notice in writing may be given by any such persons to the inspector for each district in which they are called upon for a statement stating in which district or districts they are respectively chargeable on their own account, and in which of those districts they desire to be charged on behalf of the person for whom they act, and they shall, if any one of them is liable to be charged on his own account in that district, be charged therein accordingly by one assessment.

Notice to persons coming into district.

171.—(1) If any person comes into a district in which he has not been charged to tax, the inspector may give him notice in writing to deliver, within fourteen days from the giving of the notice—

(a) a declaration in writing, signed by him, specifying the district in which he has been assessed; or

(b) in default thereof, a statement in order that he may be assessed and charged in the district into which he has come.

(2) If in any case a person who is, or who resides, in any district has not been assessed therein, the inspector may assess him, as though he had been resident there at the time of the publication of the general notices directed by this Act, unless he proves to the inspector's satisfaction that he has been duly assessed in some other district.

Power to require return of income.

172.—(1) Every individual, when required to do so by a notice given to him in relation to any year of assessment by an inspector, 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 his income 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);

(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.

Provided that—

(a) in the case of such interest as is referred to in section 344 the computation shall be made without regard to that section;

(b) where, under section 60, the profits or gains of a year ending on a date within the preceding year are to be taken to be the profits or gains of the preceding year, the computation shall be made by reference to the said year ending on a date within the preceding year.

(3) An inspector may refrain from giving a particular notice pursuant to a precept under section 168 in any case in which he has given, or intends to give, a notice under this section.

(4) If a person delivers to any inspector 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.

(5) In proceedings for recovery of a penalty incurred under section 500 or 501 in relation to a return referred to in the preceding provisions of this section—

(6) In this section “prescribed” means prescribed by the Revenue Commissioners and, in prescribing forms for the purposes of this section, the Revenue Commissioners shall have regard to the desirability of securing, so far as may be possible, that no individual shall be required to make more than one return annually of the sources of his income and the amounts derived therefrom.

Power to obtain information as to fees, commissions, etc.

173.—(1) Every person carrying on a trade or business shall, if required to do so by notice from an inspector, make and deliver to the inspector a return of all payments of any kind specified in the notice made during a period so specified, being—

(a) payments made in the course of the trade or business, or of such part of the trade or business as may be specified in the notice, for services rendered in connection with the trade or business by persons ordinarily resident in the State and not employed in the trade or business, or

(b) payments for services rendered in connection with the formation, acquisition, development or disposal of the trade or business, or any part of it, by persons ordinarily resident in the State and not employed in the trade or business, or

(2) Every body of persons carrying on any activity which does not constitute a trade or business shall, if required to do so by notice from an inspector, make and deliver to the inspector a return of all payments of a kind specified in the notice made during a period so specified, being—

(a) payments made in the course of carrying on the activity, or such part of the activity as may be specified in the notice, for services rendered in connection with the activity by persons ordinarily resident in the State and not employed by the said body of persons, or

(b) periodical or lump sum payments made to persons ordinarily resident in the State in respect of any copyright.

(3) A return required under subsection (1) or (2) shall, if the trade or business or other activity is carried on by an unincorporated body of persons, be made and delivered by the person who is or performs the duties of secretary of the body, and the notice shall be framed accordingly.

(4) A return under this section shall give the name of the person to whom each payment was made, the amount of the payment and such other particulars (including particulars as to the services or rights in respect of which the payment was made, the period over which any services were rendered and any business name and any business or home address of the person to whom payment was made) as may be specified in the notice.

(5) No person shall be required under this section to include in a return—

(a) particulars of any payment from which income tax is deductible, or

(b) particulars of payments made to any one person where the total of the payments to that person which would otherwise fall to be included in the return does not exceed £15, or

(c) particulars of any payment made in a year of assessment ending more than three years before the service of the notice requiring him to make the return.

(6) A person who fails to deliver, within the period limited in any notice served on him under this section, a true and correct-return which he is required by the notice to deliver shall be liable to a penalty of £20, together with, in the case of a continuing non-compliance, a penalty of the like amount for every day on which the non-compliance is continued.

(7) All penalties under this section may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any fine or penalty under any Act relating to the excise.

(8) Where—

(a) a person does not comply with any notice served on him under this section requiring him to deliver any return,

(b) the notice requires compliance within a particular period, and

the non-compliance shall be regarded, for the purposes of subsection (6), as a non-compliance continuing on every day, other than the first, of the further period.

(9) In proceedings for recovery of a penalty under this section a certificate by an officer of the Revenue Commissioners which certifies that he has inspected the relevant records of the Revenue Commissioners and that it appears from them that, during a stated period, a stated return was not received from the defendant shall be evidence until the contrary is proved that the defendant did not, during that period, deliver that return, and any such certificate, purporting to be signed by an officer of the Revenue Commissioners, may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.

(10) In this section—

(a) references to payments for services include references to payments in the nature of commission of any kind and references to payments in respect of expenses incurred in connection with the rendering of services, and

(b) references to the making of payments include references to the giving of any valuable consideration,

and the requirement imposed by subsection (4) to state the amount of a payment shall, in relation to any consideration given otherwise than in the form of money, be construed as a requirement to give particulars of the consideration.

Power to require production of accounts and books.

174.—(1) Where a person who has been duly required to deliver a statement of the profits or gains arising to him from any trade or profession fails to deliver the statement, or where the Revenue Commissioners are not satisfied with the statement delivered by any such person, the Revenue Commissioners may serve on that person a notice in writing or notices in writing requiring him to do any of the following things, that is to say—

(a) to deliver to an inspector copies of such accounts (including balance sheets) relating to the trade or profession as may be specified or described in the notice within such period as may be therein specified, including, where the accounts have been audited, a copy of the auditor's certificate;

(b) to make available, within such time as may be specified in the notice, for inspection by an inspector or by any officer authorised by the Revenue Commissioners, all such books, accounts and documents in his possession or power as may be specified or described in the notice, being books, accounts and documents which contain information as to transactions of the trade or profession.

(2) The inspector or other officer may take copies of, or extracts from any books, accounts or documents made available for his inspection under this section.

Power to obtain information as to interest paid or credited without deduction of tax.

175.—(1) Every person carrying on a trade or business who, in the ordinary course of the operations thereof, receives or retains money in such circumstances that interest becomes payable thereon which is paid or credited without deduction of income tax, and, in particular, every person carrying on the trade or business of banking, shall, if required to do so, by notice from an inspector, make and deliver to the inspector, within the time specified in the notice, a return of all interest paid or credited by him as aforesaid during a year specified in the notice in the course of his trade or business or any such part of his trade or business as may be so specified, giving the names and addresses of the persons to whom the interest was paid or credited and stating, in each case, the amount of the interest:

Provided that—

(a) no interest paid or credited to any person shall be required to be included in any such return if the total amount of the interest paid or credited to that person which would otherwise have fallen to be included in the return does not exceed £50; and

(b) the year specified in a notice under this subsection shall not be a year ending more than three years before the date of the service of the notice.

(2) Without prejudice to the generality of so much of subsection (1) as enables different notices to be served thereunder in relation to different parts of a trade or business, separate notices may be served under that subsection as respects the transactions carried on at any branch or branches respectively specified in the notices, and any such separate notice shall, if served on the manager or other person in charge of the branch or branches in question, be deemed to have been duly served on the person carrying on the trade or business; and where such a separate notice is so served as respects the transactions carried on at any branch or branches, any notice subsequently served under subsection (1) on the person carrying on the trade or business shall not be deemed to extend to any transaction to which the said separate notice extends.

(3) This section shall, with any necessary adaptations, apply in relation to the Post Office Savings Bank as if it were a trade or business carried on by the Minister for Posts and Telegraphs.

This subsection shall have effect notwithstanding anything in section 4 of the Post Office Savings Bank Act, 1861 , but save as aforesaid that section shall remain in full force and effect.

(4) The foregoing provisions of this section shall apply to interest paid or credited on or at any time after the 6th day of April, 1962, and only to money received or retained in the State, and, if a person to whom any interest is paid or credited in respect of any money received or retained in the State by notice in writing served on the person paying or crediting the interest—

(a) declares that the person who was beneficially entitled to that interest when it was paid or credited was not then ordinarily resident in the State, and

(b) requests that the interest shall not be included in any return under this section,

the person paying or crediting the interest shall not be required to include the interest in any such return.

Delivery of lists by persons in receipt of income of others.

176.—(1) Every person who, in whatever capacity, is in receipt of any money or value, or of profits or gains arising from any of the sources mentioned in this Act, of or belonging to any other person who is chargeable in respect thereof, or who would be so chargeable if he were resident in the State and not an incapacitated person, shall, whenever required to do so by any general or particular notice, prepare and deliver, within the period mentioned in such notice, a list in the prescribed form, signed by him, containing—

(a) a statement of all such money, value, profits or gains;

(b) the name and address of every person to whom the same shall belong;

(c) a declaration whether every such person is of full age, or a married woman or is resident in the State or is an incapacitated person.

(2) If any person above described is acting jointly with any other person, he shall, in like manner, deliver a list of the names and addresses of all persons joined with him at the time of delivery of the list mentioned in subsection (1).

Lists of lodgers and inmates.

177.—Every person, when required to do so by a general or particular notice under this Act, shall, within the time limited thereby, prepare and deliver to the inspector a list, in writing, containing to the best of his belief—

(a) the name of every lodger or inmate resident in his dwellinghouse; and

(b) the name and ordinary place of residence of any such lodger or inmate who has any ordinary place of residence elsewhere at which he can be assessed and who desires to be assessed at such ordinary place of residence.

Lists of employees.

178.—(1) Every employer, when required to do so by notice from an inspector, shall, within the time limited by the notice, prepare and deliver to the inspector a return containing—

(a) the names and places of residence of all persons employed by him; and

(b) the payments, made to those persons in respect of that employment, except persons who are not employed in any other employment and whose remuneration in the employment for the year does not exceed £150:

Provided that an employer shall not be liable to any penalty for omitting from any such return the name or place of residence of any person employed by him and not employed in any other employment, if it appears to the Revenue Commissioners that such person is entitled to total exemption from tax.

(2) (a) In this section the references to payments made to persons in respect of their employment and to the remuneration of persons in their employment shall be deemed to include references—

(i) to any payments made to employed persons in respect of expenses,

(ii) to any payments made on behalf of employed persons and not repaid, and

(iii) to any payments made to the employees in a trade or business for services rendered in connection with the trade or business, whether the services were rendered in the course of their employment or not.

(b) The reference in paragraph (a) (i) to payments made to employed persons in respect of expenses includes a reference to sums put at the disposal of an employed person and paid away by him.

(3) Where the employer is a body of persons, the secretary of the body, or other officer (by whatever name called) performing the duties of secretary, shall be deemed to be the employer for the purposes of this section, and any director, within the meaning of section 119, of a body corporate (including a company), or person engaged in the management of that body corporate, shall be deemed to be a person employed.

(4) Where an employer is a body corporate (including a company), that body corporate shall be liable to a penalty for failure to deliver a return in pursuance of this section, as well as the secretary or other officer performing the duties of secretary of the body corporate.

Service of notice on new residents in district.

179.—The inspector may at any time cause a notice to be delivered or served to or on any person coming to reside in any district after the expiration of the general notices prescribed by this Act.

Making of assessments under Schedules A and B.

180.—(1) Assessments under Schedules A and B shall be made by the inspectors or such other officers as the Revenue Commissioners shall appoint in that behalf.

(2) When assessments under Schedules A and B have been made the Revenue Commissioners shall cause notice thereof and of the time allowed for giving notice of appeal to be given in such manner as they deem expedient.

(3) Any such notice may be given—

(a) by publishing in Iris Oifigiúil, and in at least two daily newspapers published in the State, a notice that the assessments are deposited with the inspectors for the respective districts for inspection by the person assessed, and stating the time allowed for giving notice of appeal against the said assessments, or

(b) by causing to be delivered to each person assessed a notification of the amount of his assessment and of the time allowed for giving notice of appeal.

Making of assessments under Schedules D and E.

181.—(1) Assessments under Schedules D and E, except—

(a) such assessments as the Special Commissioners are empowered to make under Part XXXI, and

(b) assessments to which section 157 applies, and

(c) such assessments as officers or persons appointed by the Revenue Commissioners are empowered to make under section 158,

shall be made by the inspectors or such other officers as the Revenue Commissioners shall appoint in that behalf.

(2) The inspector shall give due notice to each person assessed, of every such assessment made by him, and the amount thereof, and of the time allowed for giving notice of appeal against the same.

Granting of allowances and reliefs.

182.—(1) Notwithstanding anything contained in this Act, the inspector or such other officer as the Revenue Commissioners shall appoint in that behalf may at any time grant, in relation to any assessment in respect of tax chargeable for any year of assessment, any allowance, deduction, or relief authorised by this Act.

(2) Whenever such inspector or other officer so grants any such allowance, deduction, or relief in relation to an assessment, such assessment shall be deemed to be amended accordingly.

Aggregation of assessments.

183.—(1) Where two or more assessments fall to be made on a person under Schedule A, B, D or E, or under two or more of those Schedules,—

(a) the tax in the assessments may be stated in one sum,

(b) as regards Schedule A or B in a case in which there are two or more tenements or rateable hereditaments, one assessment may be made on the total of the annual or assessable values,

and the notice of assessment may be stated correspondingly, but particulars of the annual or assessable values comprised in one assessment made pursuant to paragraph (b) shall, on request, be given by the inspector.

(2) A notice of appeal in a case in which subsection (1) applies must, to be valid, indicate each assessment appealed against.

(3) Pending the determination of an appeal against any one or more of such assessments as are referred to in subsection (1), an amount of tax being a portion of the one sum referred to in that subsection shall be payable on the due date or dates and shall be the amount which results when the appropriate personal reliefs are deducted from the assessments not under appeal or allowed from the tax charged in those assessments (as may be appropriate).

(4) The tax stated in one sum under subsection (1) or the amount payable under subsection (3) shall for the purposes of sections 550, 551 and 552, be deemed to be tax charged by an assessment to income tax.

(5) If for any of the purposes of this Act, other than subsection (3), it becomes necessary to determine what amount of the tax charged is applicable to any one of two or more assessments referred to in subsection (1)—

(a) a certificate from the inspector indicating the manner in which the deductions, allowances or reliefs were allocated and stating the separate amounts of tax, if any, and the instalments thereof applicable to any one or more assessments or to each assessment shall be sufficient evidence of the charge to tax in and by each such assessment,

(b) where an assessment to which that certificate relates is made under subsection (1) (b), the inspector may further certify what portion of the amount of the tax charged in and by that assessment is applicable to any of the annual or assessable values, and for the purposes of this Act that portion shall be deemed to be tax charged in and by an assessment.

(6) Notwithstanding the making of one assessment pursuant to subsection (1) (b), the provisions of this Act, other than this section, relating to assessments under Schedule A or B (as the case may be) shall continue to apply as if the tenements or rateable hereditaments had been assessed separately.

(7) In this section “personal reliefs” has the meaning assigned to it by section 193 (6).

Assessment in absence of return.

184.—(1) If the inspector does not receive a statement from a person liable to be charged to tax, he shall to the best of his information and judgment make an assessment upon that person of the amount at which he ought to be charged under Schedules A, B, and E.

(2) If—

(a) a person makes default in the delivery of a statement in respect of any tax under Schedule D, or

(b) the inspector is not satisfied with a statement which has been delivered, or has received any information as to its insufficiency,

the inspector shall make an assessment on the person concerned in such sum as, according to the best of the inspector's judgment, ought to be charged on that person.

Functions of assessors.

185.—(1) (a) A person appointed under section 159 to be an assessor and a person (in this section also called an assessor) appointed under section 158 shall, on request, be furnished, free of charge, by any officer in the relevant department or office or by any agent by whom the same are payable, with true accounts of any salaries, fees, wages, perquisites, profits, pensions, or stipends chargeable under Schedule E.

(b) Every such assessor shall have access to all documents in his department or office which concern any such payments.

(c) Every such assessor may, if he is dissatisfied with any such account as aforesaid, or in any case in which it may be necessary, require, from any person to be charged, an account of any salary, fees, wages, perquisites, profits, pensions, or stipend, within the like period as is limited for the delivery of statements of profits or gains under this Act, and under the like penalty as is provided in the case of failure to deliver such statements.

(2) The assessors shall assess the persons who hold offices, or are entitled to pensions or stipends, in accordance with the annual amount thereof from the documents, accounts and papers in their respective departments.

(3) Every assessment shall set forth—

(a) the full and just annual emoluments of every office and employment of profit, and the full annual amount of every pension or stipend;

(b) the names of the persons entitled thereto; and

(4) An assessor who fails to comply with the provisions of this section shall be liable to a penalty not exceeding £100 and not less than £20.

Additional assessments.

186.—(1) If the inspector discovers—

(a) that any properties or profits chargeable to tax have been omitted from the first assessments, or

(b) that a person chargeable has not delivered any statement, or has not delivered a full and proper statement, or has not been assessed to tax, or has been undercharged in the first assessments, or

(c) that a person chargeable has been allowed, or has obtained from and in the first assessments, any allowance, deduction, exemption, abatement, or relief not authorised by this Act,

then, where the tax is chargeable under Schedule A, B, D or E, the inspector shall make an additional first assessment:

Provided that any such additional first assessment shall be subject to appeal and other proceedings as in the case of a first assessment.

(2) Subject to section 211, an assessment or an additional first assessment may be amended or made at any time.

(3) Any assessments not made at the time when the first assessments are made shall, as soon as they are made, be added to the first assessments, and to the respective duplicates thereof, by means of separate forms of assessment and duplicate.

Particulars of sums to be collected.

187.—(1) After assessments to income tax and sur-tax have been made, the inspectors shall transmit particulars of the sums to be collected to the Collector for collection, and references in this Act to duplicates of assessments delivered to collectors shall be construed as including references to particulars so transmitted.

(2) As soon as may be after the termination of the appointment of a collector appointed under section 7 of the Finance Act, 1934 , the inspector shall transmit to the Collector for collection particulars of all sums of income tax or balances thereof contained in duplicates which were delivered to that collector and which remained unpaid on such termination, and references in this Act to duplicates of assessments delivered to collectors shall be construed as including references to particulars so transmitted.

(3) Where, before or after the passing of this Act, the Collector duly appointed to collect any income tax in succession to another Collector institutes or continues proceedings under section 486 for the recovery of the tax or any balance thereof, the other Collector shall, for the purposes of the proceedings, be deemed until the contrary is proved to have ceased to be the Collector appointed to collect the tax.

Loss or destruction of assessments and other documents.

188.—(1) Where any assessment to income tax for any year, or any duplicate of assessment to income tax for any year, or any return or other document relating to income tax has been lost or destroyed, or has been so defaced or damaged as to be illegible or otherwise useless, the Revenue Commissioners, inspectors, the Collector, and other officers respectively having powers in relation to income tax may, notwithstanding anything in any enactment to the contrary, do all such acts and things as they might have done, and all acts and things done under or in pursuance of this section shall be as valid and effectual for all purposes as they would have been if the assessment or duplicate of assessment had not been made, or the return or other document had not been made or furnished, or required to be made or furnished:

Provided that, where any person who is charged with income tax in consequence or by virtue of any act or thing done under or in pursuance of this section, proves to the satisfaction of the Revenue Commissioners that he has already paid any income tax for the same year in respect of the subject matter and on the account in respect of and on which he is so charged, relief shall be given to the extent to which the liability of that person has been discharged by the payments so made either by abatement from the charge or by repayment, as the case may require.

(2) In this section “income tax” includes “sur-tax”.

Amendment of statutory forms.

189.—It shall be lawful for the Revenue Commissioners from time to time to make such amendments of the forms of declarations, lists and statements contained in Schedules 17 and 18 as appear to them to be necessary to give effect to the provisions of this Act.

Chapter II

Provision Against Double Assessment and Relief in Respect of Error or Mistake

Double assessment.

190.—(1) A person who, either on his own account, or on behalf of another person, has been assessed to tax, and is by any error or mistake again assessed for the same year for the same cause and on the same account, may apply to the Special Commissioners for relief, and the said Commissioners, on proof to their satisfaction of the double assessment, shall cause the said assessment, or so much thereof as constitutes a double assessment, to be vacated.

(2) If it appears to the satisfaction of the Revenue Commissioners that a person has been assessed more than once for the same cause and for the same year, they shall direct the whole, or such part of any assessment as appears to be an overcharge, to be vacated, and thereupon the same shall be vacated accordingly.

(3) If it is proved to the satisfaction of the Revenue Commissioners that any such double assessment as aforesaid has been made, and that payment has been made on both assessments, they shall order the amount of the overpayment to be repaid to the applicant.

Error or mistake.

191.—(1) If any person who has paid tax charged under an assessment to income tax made for any year under Schedule D or Schedule E alleges that the assessment was excessive by reason of some error or mistake in the return or statement made by him for the purposes of the assessment, he may, at any time not later than six years after the end of the year of assessment within which the assessment was made, make an application in writing to the Revenue Commissioners for relief.

(2) On receiving any such application the Revenue Commissioners shall inquire into the matter and shall, subject to the provisions of this section, give by way of repayment such relief (including any consequential relief from sur-tax) in respect of the error or mistake as is reasonable and just:

Provided that no relief shall be given under this section in respect of an error or mistake as to the basis on which the liability of the applicant ought to have been computed where the return or statement was in fact made on the basis or in accordance with the practice generally prevailing at the time when the return or statement was made;

(3) In determining any application under this section the Revenue Commissioners shall have regard to all the relevant circumstances of the case, and in particular shall consider whether the granting of relief would result in the exclusion from charge to income tax or sur-tax of any part of the profits or income of the applicant, and for this purpose the Commissioners may take into consideration the liability of the applicant and assessments made on him in respect of other years.

(4) Any person who is aggrieved by the determination of the Revenue Commissioners on an application made by him under this section may, on giving notice in writing to those Commissioners within twenty-one days after the notification to him of their determination, appeal to the Special Commissioners.

(5) The Special Commissioners shall thereupon hear and determine the appeal in accordance with the principles to be followed by the Revenue Commissioners in determining the applications under this section, and subject thereto, in like manner as in the case of an appeal to them against an assessment under Schedule D or Schedule E, as the case may be, and the provisions of this Act relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications:

Provided that neither the appellant nor the Revenue Commissioners shall be entitled to require a case to be stated for the opinion of the High Court otherwise than on a point of law arising in connection with the computation of profits or income.

(6) This section shall have effect, in relation to an assessment for a year earlier than the year 1960-61 if it was made before the 6th day of April, 1963, subject to the substitution in subsection (1) of “three years after the end of the year of assessment for” for “six years after the end of the year of assessment within”.

PART IX

Special Provisions as to Married Persons, Non-residents, Temporary Residents, Bodies of Persons, Incapacitated Persons, etc.

Chapter I

Special Provisions as to Married Persons

General rule as to tax on husbands and wives.

192.—(1) Subject to the provisions of this Chapter, a woman's income chargeable to tax shall, so far as it is income for a year of assessment or part of a year of assessment during which she is a married woman living with her husband, be deemed for income tax (including sur-tax) purposes to be his income and not to be her income, but the question whether there is any income of hers chargeable to tax for any year of assessment and, if so, what is to be taken to be the amount thereof for tax purposes shall not be affected by the provisions of this subsection.

(2) Any tax falling to be assessed in respect of any income which, under subsection (1), is to be deemed to be the income of a woman's husband shall, instead of being assessed on her, or on her trustee, guardian or committee, or on her executors or administrators, be assessable on him or, in the appropriate cases, on his trustee, guardian or committee, or on his executors or administrators.

(3) References in this section to a woman's income include references to any such sum which, apart from this section, would fall to be included in computing her total income, and this subsection has effect in relation to any such sum notwithstanding that some enactment (including, except so far as the contrary is expressly provided, an enactment passed after the passing of this Act) requires that that sum should not be treated as income of any person other than her.

Personal reliefs on exercise of option for separate assessments.

193.—(1) This section shall have effect as respects personal reliefs where, by virtue of an application under section 197, income tax for any year is to be assessable and chargeable on the incomes of a husband and a wife as if they were not married.

(2) The total relief from tax given to the husband and the wife by way of personal reliefs shall be the same as if the application had not had effect with respect to the year and, subject to subsection (3), the benefit flowing from the personal reliefs may be given either by way of reduction of the amount of the tax to be paid, or by repayment of any excess of tax which has been paid, or by both of these means, as the case requires, and shall be allocated to the husband and the wife—

(a) so far as it flows from relief under sections 143, 151 and 152, to the husband or the wife according as he or she made the payment giving rise to the relief,

(b) so far as it flows from relief under section 134, in proportion to the amounts of their respective earned incomes,

(c) so far as it flows from relief in respect of a dependent relative under section 142 or relief in respect of a child under section 141 (2), to the husband or the wife according as he or she maintains the relative or child,

(d) so far as it flows from relief under section 135, in proportion to the amounts of their respective unearned incomes within the meaning of section 135,

(e) so far as it flows from relief under section 136, in proportion to the amount of their respective relevant incomes within the meaning of section 136, and

(f) as to the balance, in proportion to the amounts of their respective assessable incomes.

(3) Where the amount of relief allocated to the husband under subsection (2) exceeds the income tax chargeable on the income of the husband for the year of assessment, the balance shall be applied to reduce the income tax chargeable on the income of the wife for that year, and where the amount of relief allocated to the wife under that subsection exceeds the income tax chargeable on her income for the year of assessment, the balance shall be applied to reduce the income tax chargeable on the income of the husband for that year.

(4) Returns of the total incomes of the husband and the wife may be made for the purposes of this section either by the husband or by the wife but, if the Revenue Commissioners are not satisfied with any such return, they may obtain a return from the wife or the husband, as the case may be.

(5) The Revenue Commissioners may by notice require returns for the purposes of this section to be made at any time.

(6) In this section “personal reliefs” means any relief under section 134, 135, 136, 138, 139, 140, 141, 142, 143, 144, 151 or 152.

Collection from wife of tax assessed on husband attributable to her income.

194.—(1) Where—

(a) an assessment to income tax or sur-tax (in this section referred to as the original assessment) has been made for the year beginning on the 6th day of April, 1958, or any subsequent year of assessment on a man, or on a man's trustee, guardian or committee, or on a man's executors or administrators,

(b) the Revenue Commissioners are of opinion that, if an application for separate assessment under section 197 or 198 had been in force with respect to that year of assessment, an assessment in respect of, or of part of, the same income would have fallen to be made on, or on the trustee, guardian or committee of, or on the executors or administrators of, a woman who is the said man's wife or was his wife in that year of assessment, and

(c) the whole or part of the amount payable under the original assessment has remained unpaid at the expiration of twenty-eight days from the time when it became due,

the Revenue Commissioners may give to her, or, if she is dead, to her executors or administrators, or, if such an assessment as is referred to in paragraph (b) could, in the event therein referred to, have been made on her trustee, guardian or committee, to her or to her trustee, guardian or committee, a notice—

(i) stating particulars of the original assessment and of the amount remaining unpaid thereunder, and

(ii) stating particulars, to the best of their judgment, of the assessment which would have fallen to be made as aforesaid,

and requiring the person to whom the notice is given to pay the amount which would have been payable under the last-mentioned assessment if it conformed with those particulars, or the amount remaining unpaid under the original assessment, whichever is the less.

(2) The same consequences as respects—

(a) the imposition of a liability to pay, and the recovery of, the tax with or without interest,

(b) priority for the tax in bankruptcy or in the administration of the estate of a deceased person,

(c) appeals to the Special Commissioners, the rehearing of such appeals and the stating of cases for the opinion of the High Court, and

(d) the ultimate incidence of the liability imposed,

shall follow on the giving of a notice under subsection (1) to a woman, or to her trustee, guardian or committee, or to her executors or administrators, as would have followed on the making on her, or on her trustee, guardian or committee, or on her executors or administrators, as the case may be, of such an assessment as is referred to in subsection (1) (b), being an assessment which—

(i) was made on the day of the giving of the notice,

(ii) charged the same amount of tax as is required to be paid by the notice,

(iii) fell to be made and was made by the authority who made the original assessment, and

(iv) was made by that authority to the best of his or their judgment,

and the provisions of this Act relating to the matters specified in paragraphs (a) to (d) shall, with the necessary adaptations, have effect accordingly.

(3) Where a notice is given under subsection (1), tax up to the amount required to be paid by the notice shall cease to be recoverable under the original assessment and, where the tax charged by the original assessment carried interest under section 550, such adjustment shall be made of the amount payable under that section in relation to that assessment and such repayment shall be made of any amounts previously paid under that section in relation thereto, as are necessary to secure that the total sum, if any, paid or payable under that section in relation to that assessment is the same as it would have been if the amount which ceases to be recoverable had never been charged.

(4) Where the amount payable under a notice given under subsection (1) is reduced as the result of an appeal or of the stating of a case for the opinion of the High Court—

(a) the Revenue Commissioners shall, if, in the light of that result, they are satisfied that the original assessment was excessive, cause such relief to be given by way of repayment or otherwise as appears to them to be just; but

(b) subject to any relief so given, a sum equal to the reduction in the amount payable under the notice shall again become recoverable under the original assessment.

(5) The Revenue Commissioners and the inspector or other proper officer shall have the like powers of obtaining information with a view to the giving of, and otherwise in connection with, a notice under subsection (1) as they would have had with a view to the making of, and otherwise in connection with, such an assessment as is referred to in subsection (1) (b) if the necessary conditions had been fulfilled for the making of such an assessment.

Right of husband to disclaim liability for tax on deceased wife's income.

195.—(1) Where a woman dies who, at any time before her death, was a married woman living with her husband, he or, if he is dead, his executors or administrators may, not later than two months from the date of the grant of probate or letters of administration in respect of her estate or, with the consent of her executors or administrators, at any later date, give to her executors or administrators and to the inspector a notice in writing declaring that, to the extent permitted by this section, he or they disclaims or disclaim responsibility for unpaid income tax or unpaid sur-tax in respect of all income of hers for any year of assessment or part of a year of assessment, being a year of assessment or part of a year of assessment which began on or after the 6th day of April, 1958, and during which he was her husband and she was living with him.

(2) A notice given pursuant to this section to the inspector shall be deemed not to be a valid notice unless it specifies the names and addresses of the woman's executors or administrators.

(3) Where a notice under this section has been given to a woman's executors or administrators and to the inspector—

(a) it shall be the duty of the Revenue Commissioners and the Special Commissioners to exercise such powers as they may then or thereafter be entitled to exercise under section 194 in connection with any assessment made on or before the date when the giving of the said notice is completed, being an assessment in respect of any of the income to which the said notice relates, and

(b) the assessments (if any), whether to income tax or to sur-tax, which may be made after that date shall, in all respects and in particular as respects the persons assessable and the tax payable, be the assessments which would have fallen to be made if—

(i) an application for separate assessment under section 197 or under section 198, as the case may be, had been in force in respect of the year of assessment in question, and

(ii) all assessments previously made had been made accordingly.

(4) In this section “the inspector” means, in relation to a notice, any inspector who might reasonably be considered by the person giving the notice to be likely to be concerned with the subject-matter thereof or who declares himself ready to accept the notice.

(5) Any notice under this section may be served by post.

Married woman living with husband.

196.—(1) A married woman shall be treated for income tax purposes as living with her husband unless either—

(a) they are separated under an order of a court of competent jurisdiction or by deed of separation, or

(b) they are in fact separated in such circumstances that the separation is likely to be permanent.

(2) Where a married woman is living with her husband and either—

(a) one of them is, and one of them is not, resident in the State for a year of assessment, or

(b) both of them are resident in the State for a year of assessment but one of them is, and one of them is not, absent from the State throughout that year,

the same consequences shall follow for income tax (including sur-tax) purposes as would have followed if, throughout that year of assessment, they had been in fact separated in such circumstances that the separation was likely to be permanent.

(3) Where subsection (2) applies and the net aggregate amount of income tax (including sur-tax) falling to be borne by the husband and the wife for the year is greater than it would have been but for the provisions of that subsection, the Revenue Commissioners shall cause such relief to be given (by the reduction of such assessments on the husband or the wife or the repayment of such tax paid (by deduction or otherwise) by the husband or the wife as the Revenue Commissioners may direct) as will reduce the said net aggregate amount by the amount of the excess.

Separate assessments to income tax.

197.—(1) If an application is made for the purpose in such manner and form as may be prescribed by the Revenue Commissioners, either by a husband or wife, within six months before the 6th day of July in any year of assessment, income tax for that year shall be assessed, charged and recovered on the income of the husband and on the income of the wife as if they were not married, and all the provisions of this Act with respect to the assessment, charge, and recovery of tax shall, save as otherwise provided by this Act, apply as if they were not married.

(2) An application for the purposes of this section may in the case of persons marrying during the course of a year of assessment be made as regards that year at any time before the 6th day of July in the following year.

(3) The Revenue Commissioners may require returns for the purposes of this section to be made at any time.

Separate assessments to sur-tax.

198.—(1) If an application is made for the purpose in such manner and form as may be prescribed by the Revenue Commissioners, either by a husband or wife, within six months before the 6th day of July in the year of assessment—

(a) sur-tax for that year shall be assessed, charged, and recovered on the income of the husband and on the income of the wife as if they were not married, and all the provisions of this Act with respect to the assessment, charge, and recovery of sur-tax, shall apply as if they were not married; and

(b) the income of the husband and wife shall be treated as one in estimating total income for the purpose of sur-tax, and the amount of sur-tax payable in respect of the total income shall be divided between the husband and wife in proportion to their respective incomes, and the total amount payable shall not be less than it would have been if an application had not been made under this section.

(3) The Revenue Commissioners may require returns for the purposes of this section to be made at any time.

Chapter II

Special Provisions as to Non-residents and Temporary Residents

Persons temporarily resident outside the State.

199.—Every person whose ordinary residence has been in the State shall be assessed and charged to tax, notwithstanding that at the time the assessment or charge is made he may have left the State if he has so left for the purpose only of occasional residence outside the State, and shall be charged as a person actually residing in the State upon the whole amount of his profits or gains, whether they arise from property in the State or elsewhere, or from any allowance, annuity, or stipend (save as herein is excepted), or from any trade, profession or employment in the State or elsewhere.

Non-residents: assessment.

200.—A person not resident in the State, whether a citizen of Ireland or not, shall be assessable and chargeable in the name of any trustee, guardian, or committee of such person, or of any factor, agent, receiver, branch, or manager, whether such factor, agent, receiver, branch, or manager has the receipt of the profits or gains or not, in like manner and to the like amount as such non-resident person would be assessed and charged if he were resident in the State and in the actual receipt of such profits or gains:

Provided that in the case of a partnership, the precedent partner (as defined in section 69) or if there is no precedent partner, the factor, agent, receiver, branch, or manager shall be deemed to be the agent of a non-resident partner.

Non-residents: profits from agencies, etc.

201.—A non-resident person shall be assessable and chargeable in respect of any profits or gains arising, whether directly or indirectly, through or from any factorship, agency, receivership, branch, or management, and shall be so assessable and chargeable in the name of the factor, agent, receiver, branch, or manager.

Non-residents: control over residents.

202.—Where a non-resident person, not being a citizen of Ireland or an Irish firm or company, or branch thereof, carries on business with a resident person, and it appears to the inspector that, owing to the close connection between the resident person and the non-resident person, and to the substantial control exercised by the non-resident person over the resident person, the course of business between those persons can be so arranged, and is so arranged, that the business done by the resident person in pursuance of his connection with the non-resident person produces to the resident person either no profits or less than the ordinary profits which might be expected to arise from that business, the non-resident person shall be assessable and chargeable to tax in the name of the resident person as if the resident person were an agent of the non-resident person.

Non-residents: charge on percentage of turnover.

203.—(1) Where it appears to the inspector or, on appeal, to the Special Commissioners, that the true amount of the profits or gains of any non-resident person chargeable with tax in the name of a resident person cannot in any case be readily ascertained, the non-resident person may, if it is thought fit by the inspector or Commissioners, be assessed and charged on a percentage of the turnover of the business done by the non-resident person through or with the resident person in whose name he is chargeable as aforesaid, and in such case the provisions of this Act relating to the delivery of statements by persons acting on behalf of others shall extend so as to require returns to be given by the resident person of the business so done by the non-resident person through or with the resident person, in the same manner as statements are to be delivered by persons acting for incapacitated or non-resident persons of profits or gains to be charged.

(2) The amount of the percentage under subsection (1) shall in each case be determined, having regard to the nature of the business, by the inspector by whom the assessment on the percentage basis is made, subject to appeal to the Special Commissioners.

(3) If either the resident person or the non-resident person is dissatisfied with the percentage determined either in the first instance or by the Special Commissioners on appeal, he may, within four months of that determination, require the inspector or the Special Commissioners, as the case may be, to refer the question of the percentage to a referee or board of referees to be appointed for the purpose by the Minister for Finance, and the decision of the referee or board shall be final and conclusive.

Non-residents: merchanting profit.

204.—Where a non-resident person is chargeable to income tax in the name of any branch, manager, agent, factor or receiver in respect of any profits or gains arising from the sale of goods or produce manufactured or produced outside the State by the non-resident person, the person in whose name the non-resident person is so chargeable may, if he thinks fit, apply to the inspector or, in case of an appeal, to the Special Commissioners, to have the assessment to income tax in respect of those profits or gains made or amended on the basis of the profits which might reasonably be expected to have been earned by a merchant or, where the goods are retailed by or on behalf of the manufacturer or producer, by a retailer of the goods sold, who had bought from the manufacturer or producer direct, and on proof to the satisfaction of the inspector or, as the case may be, the Special Commissioners of the amount of the profits on the basis aforesaid, the assessment shall be made or amended accordingly.

Non-residents: restrictions on chargeability.

205.—(1) Nothing in this Chapter shall render a non-resident person chargeable in the name of a broker or general commission agent, or in the name of an agent not being an authorised person carrying on the regular agency of the non-resident person or a person chargeable as if he were an agent in pursuance of the provisions of this Chapter in respect of profits or gains arising from sales or transactions carried out through such a broker or agent.

(2) The fact that a non-resident person executes sales or carries out transactions with other non-residents in circumstances which would make him chargeable in pursuance of the provisions of this Chapter in the name of a resident person shall not of itself make him chargeable in respect of profits arising from those sales or transactions.

Temporary residents.

206.—A person shall not be charged to tax under Schedule D as a person residing in the State, in respect of profits or gains received in respect of possessions or securities outside the State, who is in the State for some temporary purpose only, and not with any view or intent of establishing his residence therein, and who has not actually resided in the State at one time or several times for a period equal in the whole to six months in any year of assessment, but if any such person resides in the State for the aforesaid period he shall be so chargeable for that year.

Chapter III

Special Provisions as to Bodies of Persons, Incapacitated Persons, Trustees and Agents, Personal Representatives and Receivers

Bodies of persons.

207.—(1) Every body of persons shall be chargeable to tax in like manner as any person is chargeable under the provisions of this Act.

(2) The treasurer or other officer acting as such, auditor or receiver for the time being of any body of persons chargeable to tax, shall be answerable for doing all such acts as are required to be done under this Act, for the purpose of the assessment of such body and for payment of the tax, and for the purpose of the assessment of the officers and persons in the employment of such body:

Provided that, in the case of a company, the person so answerable shall be the secretary of the company or other officer (by whatever name called) performing the duties of secretary.

(3) Every such officer may from time to time retain out of any money coming into his hands, on behalf of the body, so much thereof as is sufficient to pay the tax charged upon the body, and shall be indemnified for all such payments made in pursuance of this Act.

Trustees, guardians and committees.

208.—The trustee, guardian or committee of any incapacitated person having the direction, control, or management of the property or concern of any such person, whether such person resides in the State or not, shall be assessable and chargeable to tax in like manner and to the like amount as that person would be assessed and charged if he were not an incapacitated person.

Liability of trustees, etc.

209.—(1) The person who is chargeable in respect of an incapacitated person, or in whose name a non-resident person is chargeable, shall be answerable for all matters required to be done under this Act for the purpose of assessment and payment of tax.

(2) Any person who has been charged under this Act in respect of any incapacitated or non-resident person may retain, out of money coming into his hands on behalf of any such person, so much thereof from time to time as is sufficient to pay the tax charged, and shall be indemnified for all such payments made in pursuance of this Act.

Liability of parents, guardians and personal representatives.

210.—(1) If a person chargeable to tax is an infant, or dies—

(a) the parent or guardian of the infant shall be liable for the tax in default of payment by the infant; and

(b) the executor or administrator of the person deceased shall be liable for the tax charged on such deceased person,

and on neglect or refusal of payment any such person so liable as aforesaid may be proceeded against in like manner as any other defaulter.

(2) A parent or guardian who makes such payment shall be allowed all sums so paid in his accounts, and an executor or administrator may deduct all such payments out of the assets and effects of the person deceased.

(3) If the owner of any property occupied by him at the time an assessment for any year under Schedule A was made, dies before payment of the tax, the heirs, executors, administrators, or assigns, or other persons who become entitled on his death, to the rents and profits thereof, shall be liable to pay all arrears of tax due at the time of the death, or, if no arrears are due, the tax payable for the period up to the time of the death, without any new assessment.

Assessment of personal representatives.

211.—(1) Where a person dies, an assessment or an additional first assessment (as the case may be), may be made for the year of assessment in which such person dies or for any previous year in respect of the profits or gains which arose or accrued to such person before his death, and the amount of the tax on such profits or gains shall be a debt due from and payable out of the estate of such person, and the executor or administrator of such person shall be assessable and chargeable in respect of such tax.

(2) No assessment under this section shall be made later than three years after the expiration of the year of assessment in which the deceased person died in a case in which the grant of probate or letters of administration was made in that year, and no such assessment shall be made later than two years after the expiration of the year of assessment in which such grant was made in any other case, but the foregoing provisions of this paragraph shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year of assessment in which the deceased person died, such assessment may be made at any time before the expiration of two years after the end of the year of assessment in which the corrective affidavit was lodged.

(3) The executor or administrator of any such deceased person shall, when required by a particular notice so to do, prepare and deliver to the inspector a statement in writing signed by such executor or administrator and containing particulars, to the best of his judgment and belief, of the profits or gains which arose or accrued to such deceased person before his death and in respect of which such executor or administrator is assessable under this section, and the provisions of this Act relating to statements to be delivered by any person shall apply, with any necessary modifications, to statements to be delivered under this section.

(4) Nothing in this section shall apply to or affect statements to be delivered or assessments to be made in respect of a trade or profession carried on by two or more persons jointly.

Receivers appointed by the court.

212.—(1) A receiver appointed by any court in the State which has the direction and control of any property in respect of which tax is charged in accordance with the provisions of this Act shall be assessable and chargeable with tax in like manner and to the like amount as would be assessed and charged if the property were not under the direction and control of the court.

(2) Every such receiver shall be answerable for doing all matters and things required to be done under this Act for the purpose of assessment and payment of tax.

Protection for trustees, agents and receivers.

213.—(1) A trustee who has authorised the receipt of profits arising from trust property by, or by the agent of, the person entitled thereto shall not, if—

(a) that person or agent actually received the profits under that authority, and

(b) the trustee returns a list, as required by section 176, of the name, address and profits of that person,

be required to do any other act for the purpose of the assessment of that person, unless the Revenue Commissioners require the testimony of the trustee pursuant to this Act.

(2) An agent or receiver of any person resident in the State, other than an incapacitated person, shall not, if he returns a list, as required by section 176, of the name, address and profits of that person, be required to do any other act for the purpose of the assessment of that person, unless the Revenue Commissioners require the testimony of the agent or receiver pursuant to this Act.

PART X

Special Provisions as to Assurance Companies and Investment Businesses

Relief for expenses of management.

214.—(1) Where an assurance company carrying on life assurance business, or any company whose business consists mainly in the making of investments, and the principal part of whose income is derived therefrom, or any savings bank or other bank for savings, claims and proves to the satisfaction of the Special Commissioners that, for any year of assessment, it has been charged to tax by deduction or otherwise, and has not been charged in respect of its profits in accordance with the provisions of this Act applicable to Case I of Schedule D, the company or bank shall be entitled to repayment of so much of the tax paid by it as is equal to the amount of the tax on any sums disbursed as expenses of management (including commissions) for that year:

Provided that—

(a) relief shall not be given under this section so as to make the tax paid by the company or bank less than the tax which would have been paid if the profits had been charged in accordance with the provisions of this Act applicable to Case I of Schedule D; and

(b) the amount of any fines, fees, or profits arising from reversions in the case of an assurance company, and, in the case of any other company or any such bank, the amount of any income or profits derived from sources not charged to tax, shall be deducted from the amount treated as expenses of management for the year; and

(c) in calculating profits arising from reversions, the company may set off against those profits any loss arising from reversions for any previous year during which any enactment granting this relief was in operation.

(2) Notice of any claim to the Special Commissioners under this section, together with the particulars thereof, shall be given in writing to the inspector within twelve months after the expiration of the year of assessment in respect of which the claim is made, and where the inspector objects to such claim the Special Commissioners shall hear and determine the same in like manner as in the case of an appeal to them against an assessment under Schedule D, and the provisions of this Act relating to the statement of a case for the opinion of the High Court on a point of law shall apply.

(3) A company or bank shall not be entitled to any relief under this section in respect of any expenses as to which relief may be claimed or allowed under section 23 or 24.

(4) Where an assurance company, not having its head office in the State, is charged under Case III of Schedule D, on a proportion of the income from the investments of its life assurance fund, or on a basis substituted therefor, the relief in respect of expenses of management shall be calculated by reference to a like proportion of its total expenses of management for the year, estimated according to the provisions of this Act.

(5) Where income arising from the investments of the foreign life assurance fund of an assurance company has been relieved from tax in pursuance of the provisions of this Act, a corresponding reduction shall be made in the relief granted under this section in respect of the expenses of management.

Foreign assurance companies: investment income.

215.—(1) Where an assurance company not having its head office in the State carries on life assurance business through any branch or agency in the State, any income of the company from the investments of its life assurance fund (excluding the annuity fund, if any), wherever received, shall, to the extent provided in this section, be deemed to be profits comprised in Schedule D and shall be charged under Case III thereof.

(2) Such portion only of the income from the investments of the life assurance fund for the year preceding the year of assessment shall be so charged as bears the same proportion to the total income from those investments as the amount of premiums received in that year from policy holders resident in the State and from policy holders resident outside the State whose proposals were made to the company at or through its office or agency in the State bears to the total amount of the premiums received by the company:

Provided that in the case of an assurance company having its head office in Northern Ireland, Great Britain or in any other country to which the repealed enactments corresponding to this section would apply but for their repeal, the Revenue Commissioners may, by regulation, substitute some basis other than that herein prescribed for the purpose of ascertaining the portion of the income from investments to be so charged as being income derived from business carried on in the State.

(3) Where a company has already been charged to tax, by deduction or otherwise, in respect of its life assurance business, to an amount equal to or exceeding the charge under this section, no further charge shall be made under this section, and where a company has already been so charged, but to a less amount, the charge shall be proportionately reduced.

Companies carrying on life assurance business.

216.—(1) Where an assurance company carries on life assurance business in conjunction with assurance business of any other class, the life assurance business of the company shall for the purposes of this Act be treated as a separate business from any other class of business carried on by the company.

(2) In ascertaining whether an assurance company has sustained a loss in respect of its life assurance business for the purpose of setting off such loss against the profits of any other business carried on by the company, or for the purpose of obtaining repayment of tax under section 307, any income of the company derived from the investments of its life assurance fund shall be treated as part of the profits of the company acquired in that business.

Liability of assurance companies.

217.—(1) Where the profits of an assurance company in respect of its life assurance business are, for the purposes of this Act, computed in accordance with the provisions thereof applicable to Case I of Schedule D, then, subject to subsection (3), the following provisions shall have effect:—

(a) such part of those profits as belongs or is allocated to, or is expended on behalf of, policy-holders or annuitants shall be excluded in making the computation;

(b) such part of those profits as is reserved for policy-holders or annuitants shall also be excluded in making the computation, but if any profits so excluded as being so reserved cease at any time to be so reserved and are not allocated to, or expended on behalf of, policy-holders or annuitants, then those profits shall be treated as profits of the company for the year in which they ceased to be so reserved.

(2) Where an assurance company carries on both ordinary life assurance business and industrial life assurance business, then, subject to subsection (3), the business of each such class shall, for the purposes of this Act, be treated as though it were a separate business and section 214 shall apply separately to each such class of business.

(3) Neither subsection (1) nor subsection (2) shall apply to an assurance company in respect of any year of assessment unless the company elects, by giving notice in writing to the inspector within twelve months after the end of that year, that the said subsections (1) and (2) shall both apply to it in respect of that year.

PART XI

Industrial and Provident Societies

Interpretation.

218.—In this Part, save where the context otherwise requires—

“capital allowance” means any allowance, other than an allowance falling to be made in computing profits or gains, under section 241, Part XIV, XV, XVI or XVII;

“loan interest”, in relation to a society, means any interest payable by the society in respect of any mortgage, loan, loan stock, or deposit;

“share interest”, in relation to a society, means any interest, dividend, bonus, or other sum payable to a shareholder of the society by reference to the amount of his holding in the share capital of the society;

“society” means a society registered under the Industrial and Provident Societies Acts, 1893 to 1936;

and references to the payment of share interest or loan interest include references to the crediting of such interest.

Deduction as expenses of certain sums, etc.

219.—(1) It is hereby declared that in computing, for the purposes of Case I of Schedule D or of section 78, the profits or gains of a society there are to be deducted as expenses any sums which—

(a) represent a discount, rebate, dividend, or bonus granted by the society to members thereof or other persons in respect of amounts paid or payable by or to them on account of their transactions with the society being transactions which are taken into account in the said computation, and

(b) are calculated by reference to the said amounts or to the magnitude of the said transactions and not by reference to the amount of any share or interest in the capital of the society.

(2) A society whose business consists mainly in the making of investments, and the principal part of whose income is derived therefrom, shall be entitled to relief under section 214, in the same manner and to the same extent as if the business of the society were the business of a company.

(3) Where any profits or gains of a society which, but for the repeal of section 39 (4) of the Income Tax Act, 1918, would not be chargeable to tax are so chargeable by virtue of that repeal and the computation of profits or gains is required to be made by reference to any year or period other than the year of assessment, the computation for that year or period shall be made in accordance with the provisions of this Part notwithstanding that those provisions were not in force in that year or period or some part thereof.

(4) (a) Where for the year 1962-63 a society was entitled to exemption from tax in respect of the profits of a trade carried on by it—

(i) no capital allowance in respect of any property used for the purposes of the trade shall be carried forward from the year 1962-63, and

(ii) no loss, or portion of a loss, which was sustained before the 6th day of April, 1963, shall be carried forward under section 309.

(b) Where for the year 1962-63 or any previous year of assessment an annual allowance, balancing allowance or balancing charge in respect of capital expenditure on the construction of a building or structure might have been made to or on a society under Part V of the Finance Act, 1959 , but for the circumstance that the society was exempt from tax under Schedule D, any annual allowance, balancing allowance or balancing charge falling to be made in respect of the expenditure under Part XVI for any year of assessment shall be computed as if every annual allowance, balancing allowance and balancing charge which might have been made as aforesaid had been made:

Provided that nothing in this paragraph shall affect the provisions of section 265 (5).

(c) Where for the year 1962-63 or any previous year of assessment an annual allowance in respect of capital expenditure on the purchase of patent rights might have been made to or on a society under Part V of the Finance Act, 1959 , but for the circumstance that the society was exempt from tax under Schedule D, the amount of the expenditure remaining unallowed (within the meaning of section 286) shall, in relation to any balancing allowance or balancing charge under Part XVI falling to be made to or on the society in respect of the expenditure for any year of assessment, be computed as if every annual allowance which might have been made as aforesaid had been made.

Disregard of profits or losses attributable to certain transactions.

220.—(1) In this section—

“agricultural society” means a society—

(a) in relation to which both the following conditions are satisfied:

(i) that the number of the society's members is not less than fifty,

(ii) that all or a majority of the society's members are persons who are mainly engaged in, and derive the principal part of their income from, husbandry, or

(b) to which a certificate under subsection (2) (a) relates;

“fishery society” means a society—

(a) in relation to which both the following conditions are satisfied:

(i) that the number of the society's members is not less than twenty,

(ii) that all or a majority of the society's members are persons who are mainly engaged in, and derive the principal part of their income from, fishing, or

(b) to which a certificate under subsection (2) (b) relates;

“exempted transactions” means—

(a) in relation to an agricultural society, transactions falling within any of the following classes of transactions:

(i) the selling by wholesale of milk, cream, butter, cheese, eggs, poultry, meat or specified commodities,

(ii) the selling by retail of seeds, fertilisers or other commodities or articles, being specified commodities or articles, entering into or associated with agricultural production,

(iii) the auctioning of livestock, the artificial insemination of animals or the provision of specified services, and

(b) in relation to a fishery society, transactions falling within any of the following classes of transactions:

(i) the selling by wholesale of fresh or processed fish,

(ii) the auctioning or transportation of fish,

(iii) the selling of commodities or articles used in catching fish or of specified commodities or articles;

“selling by wholesale” means selling goods of any class to a person who carries on a trade of selling goods of that class or uses goods of that class for the purposes of a trade carried on by him.

(2) (a) The Minister for Finance may, on the recommendation of the Minister for Agriculture and Fisheries, give a certificate entitling a society to be treated, for the purposes of this section, as an agricultural society notwithstanding—

(i) that the number of the society's members is less than fifty, or

(ii) that persons such as are described in paragraph (a) (ii) of the definition of “agricultural society” contained in subsection (1) do not constitute a majority of the society's members.

(b) The Minister for Finance may, on the recommendation of the Minister for Agriculture and Fisheries, give a certificate entitling a society to be treated, for the purposes of this section, as a fishery society notwithstanding—

(i) that the number of the society's members is less than twenty, or

(ii) that persons such as are described in paragraph (a) (ii) of the definition of “fishery society” contained in subsection (1) do not constitute a majority of the society's members.

(c) In the definition of “exempted transactions” contained in subsection (1) “specified” means specified in a certificate given by the Minister for Finance on the recommendation of the Minister for Agriculture and Fisheries.

(d) A certificate under paragraph (a), (b) or (c) of this subsection—

(i) shall have effect as from such date, whether before or after the date on which it is given, as may be stated therein,

(ii) shall be published in Iris Oifigiúil as soon as may be after it is given, and

(iii) may be revoked by the Minister for Finance at any time.

(e) Where a certificate is revoked under paragraph (d), notice of the revocation shall be published as soon as may be in Iris Oifigiúil.

(3) Where, in the case of a trade carried on by a society, the transactions in any year or period for which the accounts of the society are made up, being a year or period throughout which the society was an agricultural society or a fishery society, include exempted transactions, so much of the profits or gains or the loss (as the case may be) of that year or period (computed in accordance with the provisions, other than this section, applicable to Case I of Schedule D) as is attributable to the exempted transactions shall be disregarded for all the purposes of this Act.

(4) In relation to any trade, the amount of the profits or gains or loss attributable to the exempted transactions of any year or period shall be taken to be the amount which bears to the full amount of the profits or gains or, as the case may be, the full amount of the loss for the year or period the same proportion as the aggregate of the amounts receivable by the society, by virtue of those transactions, from the sale of goods or the provision of services bears to the aggregate of all amounts receivable by the society, by virtue of transactions in the year or period from the sale of goods or the provision of services.

(5) Where for any year of assessment any capital allowances or any balancing charges under Part XVI fall to be made in charging to income tax the profits or gains of a trade carried on by a society and a proportion of the profits or gains or, as the case may be, the loss of the basis period is disregarded under this section, the amount of allowances or the amount of charges which, but for this subsection, would have been made shall be diminished in like proportion.

In this subsection—

(a) the reference to capital allowances falling to be made for any year of assessment does not include a reference to any amount carried forward from any previous year,

(b) “basis period” means, in relation to a year of assessment, the period on the profits or gains of which income tax for that year falls to be finally computed under Case I of Schedule D in respect of the trade in question or, where, by virtue of this Act, the profits or gains of any other period are to be taken to be the profits or gains of the said period, that other period.

(6) All amounts receivable by an agricultural society or a fishery society from the sale of goods, being amounts which are so receivable by virtue of exempted transactions, shall be disregarded for all the purposes of Chapter IV of Part XXV, and where, in a case in which relief from income tax is given to the society under that Chapter, any share interest is payable with deduction of tax, section 410 (2) shall not apply.

(7) Where a society claims relief from income tax by virtue of this section, the Revenue Commissioners may by notice in writing require the society to make available, within such time as may be specified in the notice, for inspection by an inspector or other officer nominated by them, all books, records and documents containing information as to its trading transactions for the year or period concerned, and if the society fails to comply with such notice, no relief under this section shall be given.

Payment of interest without deduction of tax.

221.—(1) Notwithstanding anything in this Act, any share interest or loan interest paid by a society shall be paid without deduction of tax and shall be charged under Schedule D, Case III:

Provided that this subsection shall not apply to any share interest or loan interest payable to a person whose usual place of abode is not within the State.

(2) (a) Where, in a case in which section 220 applies, a society claims repayment of tax under section 496 in respect of interest paid by it in any year of assessment, the amount repayable shall be determined on the basis that so much of the interest as exceeds the appropriate proportion thereof was not paid out of profits or gains brought into charge to tax.

(b) Where, in any year of assessment, a society, in a case in which section 220 applies, pays any share interest or loan interest, from which tax is deductible, or makes any other annual payment, so much of the aggregate of the gross amounts of all such payments as exceeds the appropriate proportion thereof shall be treated as not having been paid out of profits or gains brought into charge and section 434 shall apply accordingly.

In this paragraph “annual payment” means any payment from which, apart from any insufficiency of profit or gains of the person making it, tax is deductible under section 433.

(c) Where in any year of assessment a society pays share interest or loan interest (other than loan interest in respect of which a claim such as is mentioned in paragraph (a) is made) without deduction of tax in accordance with subsection (1), it may claim, in a case in which section 220 applies, that the appropriate proportion of the total amount so paid, or, in any other case, that the total amount so paid, be deducted from its total income for that year and, where such a claim is made, any appropriate relief from tax shall be given by repayment or otherwise.

Section 307 (5) (6) shall apply to a claim under this paragraph as those subsections apply to a claim under section 307, except that it shall not be necessary to use a prescribed form.

(d) Where for any year of assessment the amount of share interest and loan interest falling to be deducted from a society's total income under the immediately preceding paragraph exceeds the amount of the said total income, section 316 shall have effect as if the society had been assessed to tax under section 434 in respect of the payment of the excess and had paid tax under that assessment on the amount of such payment.

(e) In this subsection “the appropriate proportion” of any amount of interest or annual payment paid by a society in a year of assessment means the portion of that amount which bears to the whole the same proportion as the amount of the society's total income for the year bears to what would, but for section 220, have been the amount of the society's total income for that year.

(f) For the purposes of this subsection the total income of a society shall be taken to be its total income from all sources for the purposes of income tax computed in the manner in which it would be computed if the society were an individual but without regard to any such interest or annual payment as is mentioned in paragraph (a), (b) or (c).

(g) Any reference in the foregoing provisions of this subsection to loan interest or other interest does not include a reference to interest which is allowable as a deduction in the computation of the profits or gains of a trade carried on by the society.

(h) On or before the 1st day of May in each year, every society shall deliver to the inspector a return in such form as the Revenue Commissioners may prescribe, showing—

(i) the name and place of residence of every person to whom share interest or loan interest amounting to the sum of £5 or more has been paid by the society in the year of assessment which ended next before the said 1st day of May, and

(ii) the amount of such share interest or loan interest paid in that year to each of those persons,

and if such a return is not duly made as respects any year of assessment, the society shall not be entitled to any deduction under paragraph (c) in respect of any payments of share interest or loan interest which it was required to include in the return, and the amount of any deduction in respect of any such payments by reference to which relief has been given under paragraph (c) may, if not otherwise made good, be assessed under Case IV of Schedule D and recovered from the society accordingly.

PART XII

Special Provisions as to Pensions, Pension Schemes, Retirement Annuities and Purchased Life Annuities

Chapter I

Superannuation

Exemption of superannuation funds.

222.—(1) Subject to the provisions of this section and to any regulations made thereunder, exemption from income tax shall be allowed in respect of income derived from investments or deposits of a superannuation fund, and, subject as aforesaid, any sum paid by an employer or employed person by way of contribution towards a superannuation fund shall, in computing profits or gains for the purpose of an assessment to income tax under Case I or Case II of Schedule D or under Schedule E, be allowed to be deducted as an expense incurred in the year in which the sum is paid:

Provided that no allowance shall be made under the foregoing provision in respect of any contribution by an employed person which is not an ordinary annual contribution, and, where a contribution by an employer is not an ordinary annual contribution, it shall, for the purpose of the foregoing provision, be treated as the Commissioners may direct, either as an expense incurred in the year in which the sum is paid or as an expense to be spread over such period of years as the Commissioners think proper.

(2) Income tax chargeable in respect of an annuity paid out of a superannuation fund to a person residing in the State shall, if the Commissioners so direct, be assessed and charged on the annuitant under Schedule E instead of being deducted and accounted for under section 434 and tax shall be computed on the full amount of the annuity arising in the year of assessment.

(3) For the purposes of this section, “superannuation fund” means, unless the context otherwise requires, a fund which is approved for those purposes, by the Commissioners, and, subject as hereinafter provided, the Commissioners shall not approve any fund unless it is shown to their satisfaction that—

(a) the fund is a fund bona fide established under irrevocable trusts in connection with some trade or undertaking carried on in the State by a person residing therein;

(b) the fund has for its sole purpose the provision of annuities for all or any of the following persons in the events respectively specified, that is to say, for persons employed in the trade or undertaking, either on retirement at a specified age, or on becoming incapacitated at some earlier age, or for the widows, children, or dependants of persons who are or have been so employed, on the death of those persons;

(d) the fund is recognised by the employer and employed persons in the trade or undertaking:

Provided that the Commissioners may, if they think fit, and subject to such conditions, if any, as they think proper to attach to the approval, approve a fund, or any part of a fund, as a superannuation fund for the purposes of this section—

(i) notwithstanding that the rules of the fund provide for the return in certain contingencies of contributions paid to the fund; or

(ii) if the main purpose of the fund is the provision of such annuities as aforesaid, notwithstanding that such provision is not its sole purpose; or

(iii) notwithstanding that the trade or undertaking in connection with which the fund is established is carried on only partly in the State and by a person not residing therein.

(4) The Commissioners may make regulations generally for the purpose of carrying this section into effect and, in particular, without prejudice to the generality of the foregoing provision, may by such regulations—

(a) provide for the charging of and accounting for tax in respect of contributions (including interest) repaid to a contributor to a superannuation fund and on lump sums paid in commutation of or in lieu of annuities payable out of a superannuation fund as if any sums so repaid or paid were income of the year in which they are repaid or paid;

(b) require the trustees or other persons having the management of a superannuation fund, or an employer whose employees contribute to a superannuation fund to deliver to the Commissioners such information and particulars as the Commissioners may reasonably require for the purposes of this section;

(c) prescribe the manner in which claims for relief under this section are to be made and approved, and in which applications for the approval of a superannuation fund are to be made;

(d) provide for the withdrawal of approval in the case of a fund which ceases to satisfy the requirements of this section;

(e) provide for determining what contributions to a superannuation fund are to be treated as ordinary annual contributions for the purposes of this section.

(5) In this section “the Commissioners” means the Revenue Commissioners.

Contributions towards expenses of superannuation benefits.

223.—(1) Where, in pursuance of any public statute, superannuation allowances or gratuities are payable to individuals holding an office or employment on their retirement or to their legal personal representatives on their death, and such individuals are by any such statute required to make contributions towards the expenses of providing the allowances and gratuities, the sums so contributed by any such individual for any year may be deducted from the amount of his emoluments to be assessed to income tax for that year:

Provided that, where any such sums are to be repaid to any individual under the authority of any such statute, the person by or through whom the sums are to be repaid shall deduct from those sums an amount equal to the total amount of the income tax which would have been paid in respect of those sums if they had not been allowed as deductions under the authority of this section, and if those sums are repaid with any interest thereon, shall also deduct therefrom an amount equal to the total amount of the income tax which would have been paid in respect of that interest if it had actually been paid to the individual in the several years in respect of which it is paid, and the provisions of section 434 (2) (3) (4) (5) shall apply in regard to the accounting for and recovery of the amounts so deducted.

(2) Any person having the custody of the books containing the assessments to income tax on any individual for the several years in respect of which sums are repayable to him as aforesaid shall, notwithstanding anything contained in any declaration made by that person in pursuance of section 163, on application by the person by or through whom the sums are repayable, furnish to him such particulars as may be necessary to enable him to compute the appropriate amount of income tax to be deducted and paid over by him as aforesaid.

Contributions and benefits under Social Welfare Acts.

224.—(1) In t

Income Tax Act, 1967. Permanent Page URL

Income Tax Act, 1967.

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