No. 16/1943:

FINANCE ACT, 1943

ARRANGEMENT OF SECTIONS

PART I INCOME TAX

1 Income tax and sur-tax for the year 1943-44.

2 Amendment of section 3 of the Finance Act, 1941.

3 Allowance in respect of machinery temporarily out of use.

4 Computation of losses in certain cases.

5 Amendment of Rule 11 of the Rules applicable to Cases I and II of Schedule D.

6 Extension of exemptions in relation to National Health Insurance.

7 Certificates of charge of The Agricultural Credit Corporation, Limited.

PART II CUSTOMS AND EXCISE

8 Passenger aircraft licences.

9 Sale of tobacco on aircraft.

10 Amendments of entertainments duty.

11 Power to refund or remit duty in certain circumstances.

PART III CORPORATION PROFITS TAX

12 Amendment of section 47 of the Finance Act, 1932.

13 Amendment of certain provisions relating to computation of profits.

PART IV STAMP DUTIES

14 Stamp duty on certain voluntary conveyances and transfers.

15 Exemption of certain certificates of indebtedness from stamp duty.

16 Stamp duties on certificates of charge issued by The Agricultural Credit Corporation, Limited.

PART V MISCELLANEOUS AND GENERAL

17 Re-constitution of the Savings Certificates (Interest Charge Equalisation) Fund.

18 Duration of imprisonment for non-payment of a tax or duty.

19 Transfer of money from the Road Fund to the Exchequer.

20 Care and management of taxes and duties.

21 Short title, construction, and commencement.

AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE), AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE.

[25th May, 1943.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

PART I INCOME TAX

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1943, at the rate of seven shillings and sixpence in the pound.

(2) Sur-tax (other than excess sur-tax) for the year beginning on the 6th day of April, 1943, shall be charged in respect of the income of any individual the total of which from all sources exceeds one thousand five hundred pounds and be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1942.

(3) Where the total income, within the meaning of section 5 of the Finance Act, 1941 (No. 14 of 1941), of any individual for the year beginning on the 6th day of April, 1943, exceeds one thousand five hundred pounds and includes any such profits as are mentioned in the said section 5, an additional duty of sur-tax (in this section referred to as excess sur-tax) shall be charged for the said year beginning on the 6th day of April, 1943, at the rate of seven shillings and sixpence in the pound in respect of so much of the said income as is made chargeable therewith by sub-section (1) of the said section 5 as modified and applied by the subsequent provisions of this section.

(4) The several statutory and other provisions which were in force on the 5th day of April, 1943, in relation to income tax and sur-tax (including excess sur-tax) shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax (including excess sur-tax) to be charged as aforesaid for the year beginning on the 6th day of April, 1943.

(5) In the application (by virtue of the next preceding sub-section of this section) of Part II of the Finance Act, 1941 (No. 14 of 1941), to the excess sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1943, the said Part II shall have effect with and subject to the following modifications, that is to say:—

( a ) the expression "the 6th day of April, 1943" shall be substituted for the expression "the 6th day of April, 1941," wherever that expression occurs in the said Part II;

( b ) in paragraph (b) of sub-section (3) of section 7 of the said Act, the expression "the 5th day of April, 1944," shall be substituted for the expression "the 5th day of April, 1942," and the word "seven" shall be substituted for the word "five" and the expression "the 5th day of April, 1943," shall be substituted for the expression "the 5th day of April, 1941".

2.—(1) Nothing contained in section 3 of the Finance Act, 1941 (No. 14 of 1941), shall authorise the granting of relief under that section to any individual in respect of any year of assessment to such an extent as would reduce the aggregate of the amount of income tax, sur-tax (if any), and external income tax payable by such individual in respect of any part of his income arising in a country to which the said section 3 applies (such aggregate being computed after deduction of any relief to which he may be entitled in the said country) below the amount of income tax and sur-tax (if any) which would be payable by such individual in respect of the said part of his income if that part of his income had arisen in the State.

(2) In this section the expression "external income tax" has the same meaning as it has in the said section 3 of the Finance Act, 1941 (No. 14 of 1941).

3.—The provisions of the Income Tax Acts relating to the deduction to be allowed in respect of diminished value by reason of wear and tear shall have effect as if the references therein to diminished value by reason of wear and tear during the year of any machinery or plant included references to diminished value by reason of any machinery or plant having been temporarily out of use at any time during the year through circumstances attributable, directly or indirectly, to the present national emergency (including circumstances continuing after the termination of that emergency).

4.—(1) For the purposes of section 34 (which relates to relief in respect of certain losses) of the Income Tax Act, 1918, the amount of a loss sustained in a trade shall, in all cases (but subject to the provisions of the next following sub-section of this section) be computed in like manner as the profits or gains arising or accruing from the trade are computed under the Rule applicable to Case I of Schedule D of the said Act and the Rules applicable to Cases I and II of that Schedule.

(2) The provisions of the foregoing sub-section of this section shall not override or affect the provisions of paragraph (2) (which relates to losses of assurance companies carrying on life assurance business) of Rule 15 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918.

5.—Paragraph (2) of Rule 11 substituted by section 13 of the Finance Act, 1929 (No. 32 of 1929), for Rule 11 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, shall, in relation to cases in which the change referred to in the said paragraph occurs after the 5th day of April, 1943, be construed and have effect as if the words "twelve months after the change took place" were substituted for the words "three months after the change took place" now contained in the said paragraph.

6.—(1) In this section the expression "the Unified Society" means Cumann an Arachais Náisiúnta ar Shláinte established in pursuance of section 3 of the National Health Insurance Act, 1933 (No. 13 of 1933).

(2) The exemption conferred by sub-section (5) of section 39 of the Income Tax Act, 1918, on approved societies within the meaning of Part I of the National Insurance Act, 1911, shall extend and apply to the Unified Society and shall be deemed to have extended and applied to that Society as from the date of its establishment.

(3) The exemption conferred by the said sub-section (5) of section 39 of the Income Tax, Act, 1918, on the Irish Insurance Commissioners in respect of any income derived from any funds held by them, or under their control or management, under or for the purposes of the National Insurance Act, 1911, shall extend and apply to the Minister for Local Government and Public Health in respect of any income derived from any funds held by him, or under his control or management, for the purposes of the National Health Insurance Acts, 1911 to 1942, and shall be deemed to have so applied and extended as from the dissolution of the said Commissioners and the transfer of their functions to the said Minister by the Irish Insurance Commissioners (Transfer of Functions) Order, 1933.

7.—In order to remove doubts, it is hereby declared and enacted that the expression "certificates of charge" wherever it occurs in sub-sections (1), (2), and (3) of section 2 or in sub-section (1) of section 37 of the Finance Act, 1929 (No. 32 of 1929), shall be construed and have effect and be deemed always to have had effect as including certificates of charge issued by The Agricultural Credit Corporation, Limited, after the passing of the Agricultural Credit Act, 1929 (No. 30 of 1929), as well as certificates of charge issued by the said Corporation before the passing of that Act.

PART II CUSTOMS AND EXCISE

8.—The First Schedule to the Finance (1909-10) Act, 1910, is hereby amended by the insertion therein at the end thereof of the following provisions, and Part II of that Act shall be construed and have effect accordingly, that is to say:—

"G. PASSENGER AIRCRAFT LICENCES.

Licence granted under section 29 of the Intoxicating Liquor Act, 1943 (No. 7 of 1943) for the sale of intoxicating liquor on an aircraft in flight, to be taken out annually—

Duty of one pound (£1).

PROVISION APPLICABLE TO PASSENGER AIRCRAFT LICENCES.

For the purposes of giving jurisdiction, any sale of intoxicating liquor on an aircraft shall be deemed to have taken place either where it has actually taken place or in any place in which the aircraft may be found."

9.—(1) Section 12 (which relates to the sale of tobacco in railway carriages under excise licence) of the Revenue Act, 1884, shall apply and have effect in relation to aircraft and the proprietors of aircraft in like manner as it applies and has effect in relation to railway carriages and railway companies.

(2) For the purpose of giving jurisdiction, any sale of tobacco on an aircraft shall be deemed to have taken place either where it has actually taken place or in any place in which the aircraft may be found.

10.—(1) In this section—

the expression "entertainment's duty" means the excise duty referred to by that name in and chargeable under section 1 of the Finance (New Duties) Act, 1916, as amended by subsequent enactments.

the word "takings" means, in relation to an entertainment, the total of the payments for admission to the entertainment,

the word "expenses" means, in relation to an entertainment, the total of the moneys expended in respect of the entertainment irrespective of the person by whom or source from which such moneys are provided,

the expression "net proceeds" means, in relation to an entertainment, the amount by which the takings in respect of the entertainment exceed the expenses in respect thereof.

(2) As on and from the 1st day of August, 1943, entertainments duty shall not be charged or levied on payments for admission to any entertainment in respect of which it is shown to the satisfaction of the Revenue Commissioners—

( a ) that no expenses are incurred in respect of the entertainment and that the whole of the takings in respect thereof are devoted and will be applied to educational, philanthropic, or charitable purposes, or

( b ) that the entertainment is wholly of an educational character, or

( c ) that—

(i) the entertainment either is promoted by the Gaelic League or is promoted by some other society or organisation in respect of which it is shown to the satisfaction of the Revenue Commissioners that its primary object is the extension of the use of the Irish language, and

(ii) in either case the whole of the net proceeds of the entertainment are devoted and will be applied to the extension of the use of the Irish language.

(3) Every question or dispute as to whether an entertainment is or is not wholly of an educational character within the meaning of paragraph (b) of the next preceding sub-section of this section shall be decided by the Minister for Education whose decision thereon shall be final.

(4) Whenever it is shown to the satisfaction of the Revenue Commissioners that the whole of the net proceeds of an entertainment held on or after the 1st day of August, 1943, are devoted and will be applied to educational, philanthropic, or charitable purposes and that the expenses in respect of the entertainment did not exceed thirty per cent. of the takings in respect thereof, the Revenue Commissioners shall remit the entertainments duty in respect of that entertainment or repay the said duty paid in respect thereof.

(5) Where a series of entertainments are promoted by a person at the same place and for the same purpose, such of those entertainments as are held during such period of time as the Revenue Commissioners determine shall be regarded as one entertainment for the purpose of calculating the percentage of the takings in respect of those entertainments which is represented by the expenses in respect thereof.

(6) In order to remove doubts, it is hereby declared and enacted that, in sub-section (2) of section 25 of the Finance Act, 1932 (No. 20 of 1932), the words "admission to any ball or dance" include, and always did include, admission to a ball or dance for the purpose of dancing or otherwise taking part in such ball or dance as well as admission to such ball or dance as a spectator thereof.

(7) Sub-section (5) of section 1 of the Finance (New Duties) Act, 1916, is hereby repealed as on and from the 1st day of August, 1943.

11.—(1) Where the Revenue Commissioners are satisfied, in respect of any dutiable article imported either before or after the passing of this Act,—

( a ) that the customs duty chargeable on such article at importation was duly paid, and

( b ) that a licence to import such article either without payment of such duty or on payment of less than the full amount of such duty could lawfully have been granted to the importer of such article before the importation thereof, but was not so granted, and

( c ) that—

(i) if the fact that such licence was not so granted was due to the failure of such importer to make due application (with all necessary or proper documents) for such licence before the importation of such article, such failure was not due to any culpable negligence or default on the part of such importer, or

(ii) if there was no such failure by such importer, the fact that such licence was not so granted was not due to any culpable negligence or default on the part of such importer,

the Revenue Commissioners may, if they in their discretion think proper so to do and are satisfied that the circumstances justify it, refund to such importer so much (whether the whole or a part) of the said duty so paid by him as would not have been payable if such licence had been granted before the importation of such article.

(2) Whenever it is shown to the satisfaction of the Revenue Commissioners that a dutiable article has been destroyed or irretrievably lost after it has been imported but before account of it has been taken by the customs officer, the Revenue Commissioners may remit or, if already paid, refund the customs duty chargeable on such article on importation.

PART III CORPORATION PROFITS TAX

12.—Paragraph (a) of sub-section (1) of section 47 of the Finance Act, 1932 (No. 20 of 1932), shall, in respect of every accounting period, whether ending before or after the passing of this Act, be construed and have effect as if the words "which by its constitution is precluded from distributing any profits amongst its members" now contained in the said paragraph were deleted therefrom and the words "which was immediately before the fifth day of May, 1943, precluded by its constitution from distributing any profits amongst its members and remains continuously so precluded from that date" were inserted in the said paragraph in lieu of the said words deleted therefrom.

13.—(1) The following enactments, that is to say:—

( a ) paragraph (b) of sub-section (2) of section 39 of the Finance Act, 1941 (No. 14 of 1941), as amended by sub-section (1) of section 16 of the Finance Act, 1942 (No. 14 of 1942), and

( b ) paragraph (a) of sub-section (2) of the said section 16 of the Finance Act, 1942 , and

( c ) paragraph (b) of sub-section (3) of section 41 of the Finance Act, 1941 (No. 14 of 1941), as amended by sub-section (1) of section 17 of the Finance Act, 1942 (No. 14 of 1942), and

( d ) sub-section (2) of the said section 17 of the Finance Act, 1942 ,

are hereby severally amended, for the purpose mentioned in the next following sub-section of this section, by the substitution of the expression "the rate of nine per cent. per annum" for the expression "the rate of seven and one-half per cent. per annum" wherever the latter expression occurs in the said enactments respectively, and by the substitution of the expression "the rate of ten and one-half per cent. per annum" for the expression "the rate of nine per cent. per annum" wherever the latter expression occurs in the said enactments respectively.

(2) The several amendments made by the foregoing sub-section of this section shall have effect only in relation to any computation for the purposes of excess corporation profits tax made by reference to the following profits, that is to say:—

( a ) profits which arise or have arisen in an accounting period beginning on or after the 1st day of January, 1943, and

( b ) profits which arise or have arisen in the part subsequent to the 31st day of December, 1942, of an accounting period beginning before and ending on or after the 1st day of January, 1943.

(3) All such apportionments shall be made as may be requisite for the purposes of the foregoing provisions of this section in respect of an accounting period beginning before and ending on or after the 1st day of January, 1943, and every such apportionment shall be made in proportion to the respective lengths of the part of such accounting period prior to the 1st day of January, 1943, and the part thereof subsequent to the 31st day of December, 1942.

(4) This section shall be read and construed together with Part V of the Finance Act, 1920, as amended or extended by subsequent enactments, and, in particular, shall be read and construed together with Part V of the Finance Act, 1941 (No. 14 of 1941), and Part IV of the Finance Act, 1942 (No. 14 of 1942).

PART IV STAMP DUTIES

14.—Sub-section (6) of section 74 (which relates to stamp duty on voluntary conveyances and transfers inter vivos) of the Finance (1909-10) Act, 1910, is hereby repealed and in lieu thereof it is hereby enacted that sub-sections (1) to (5) of the said section 74 shall not apply or have effect and shall be deemed never to have applied or had effect in relation to conveyances or transfers coming within any of the following classes (whether the circumstances by virtue of which the conveyance or transfer comes within any such class are or are not stated in the conveyance or transfer), that is to say, a conveyance or transfer—

( a ) made for nominal consideration for the purpose of securing the repayment of an advance or loan, or

( b ) made for effectuating the appointment of a new trustee or the retirement of a trustee (whether the trust is expressed or implied), or

( c ) under which no beneficial interest passes in the property conveyed or transferred, or

( d ) made to a beneficiary by a trustee or other person in a fiduciary capacity under any trust whether expressed or implied, or

( e ) which is a disentailing assurance not limiting any new estate other than an estate in fee simple in the person disentailing the property.

15.—(1) In this section the expression "certificate of indebtedness" means a document, whether sealed with the official seal of the Minister for Finance or signed by that Minister or by one of his officers authorised in that behalf by him, whereby the said Minister or any such officer so authorised certifies (either expressly or impliedly) the amount of the indebtedness of the State or of a public fund of the State in respect of moneys or securities or both moneys and securities borrowed from a particular person by the said Minister in exercise of a power conferred on him by statute.

(2) Neither a certificate of indebtedness nor any agreement, receipt, bill of exchange, promissory note, mortgage, bond, covenant, or other instrument embodied or contained in a certificate of indebtedness and relating to the transaction to which such certificate relates shall be or, in the case of a certificate of indebtedness bearing date before the date of the passing of this Act, ever have been liable to any stamp duty whatsoever, and no certificate of indebtedness and no such instrument as aforesaid embodied or contained in a certificate of indebtedness shall be prevented from being given in evidence or being made available for any purpose merely by reason of the fact that no stamp duty had been paid in respect thereof.

16.—In order to remove doubts, it is hereby declared and enacted that the expression "certificate of charge" where it occurs in sub-section (1) of section 5 of the Finance (Customs and Stamp Duties) Act, 1929 (No. 5 of 1929), shall be construed and have effect and be deemed as from the passing of the Agricultural Credit Act, 1929 (No. 30 of 1929), always to have had effect as including certificates of charge issued by The Agricultural Credit Corporation, Limited, after the passing of the said Agricultural Credit Act, 1929 , as well as certificates of charge issued by the said Corporation before the passing of that Act.

PART V MISCELLANEOUS AND GENERAL

17.—(1) In this section—

the expression "the Minister" means the Minister for Finance;

the expression "the Principal Section" means section 34 of the Finance Act, 1929 ; (No. 32 of 1929);

the expression "the Fund" means the Savings Certificates (Interest Charge Equalisation) Fund set up in pursuance of the Principal Section;

the expression "savings certificates" has the meaning given to it by sub-section (5) of the Principal Section for the purposes of that section;

references to moneys standing to the credit of an Account shall, where the context so permits, be construed and have effect as including investments for the time being included in that Account.

(2) The Fund shall henceforth be known as the Savings Certificates Reserve Fund in lieu of the name given to it by the Principal Section, and that change of name shall be deemed to have had effect as on and from the 1st day of April, 1943.

(3) The Fund shall comprise and be deemed to have comprised, as on and from the 1st day of April, 1943, two accounts, whereof one shall be known and is in this section referred to as the Principal Reserve Account and the other shall be known and is in this section referred to as the Interest Reserve Account.

(4) The following provisions shall apply and have effect in relation to the investment of the Fund in pursuance of sub-section (2) of the Principal Section and in relation to other investments included in the Fund, that is to say:—

( a ) investments of moneys standing to the credit of the Principal Reserve Account shall be placed to the credit of that Account;

( b ) investments of moneys standing to the credit of the Interest Reserve Account shall be placed to the credit of that Account;

( c ) income arising from investments standing to the credit of the Principal Reserve Account shall be placed to the credit of that Account;

( d ) income arising from investments standing to the credit of the Interest Reserve Account shall be placed to the credit of that Account;

( e ) whenever moneys are required by or under this section or otherwise by law to be paid out of the Principal Reserve Account or out of the Interest Reserve Account, it shall be lawful to sell so much (if any) of the investments then standing to the credit of the Account out of which such payment is so required to be made as shall be requisite for making that payment;

( f ) the reference in sub-section (2) of the Principal Section to balances standing to the credit of the Fund shall be construed and have effect as including balances standing to the credit of either of the Accounts comprised in the Fund and the reference in the said sub-section to payments out of the Fund authorised by the Principal Section shall be construed and have effect as including payments authorised by this section out of the Fund or either of the said Accounts comprised therein.

(5) It shall be lawful for the Minister, if and so often as he so thinks proper, to issue and pay from the Central Fund or the growing produce thereof into the Fund such sums as he may think proper in respect of moneys received by the Exchequer from the sales of savings certificates, and all moneys so paid into the Fund shall be placed to the credit of the Principal Reserve Account.

(6) The following provisions shall apply and have effect in relation to the Principal Reserve Account, that is to say:—

( a ) the sum of three hundred thousand pounds (including investments representing that sum) which was transferred and paid to the Fund in pursuance of paragraph (b) of sub-section (3) of section 60 of the Central Bank Act, 1942 (No. 22 of 1942), shall be placed to the credit of the Principal Reserve Account and shall be deemed to have been so placed on the 1st day of April, 1913;

( b ) there shall be paid and transferred to the Fund and placed to the credit of the Principal Reserve Account all such (if any) moneys and investments as the Minister shall, from time to time, in exercise of powers in that behalf conferred on him by law direct to be so paid, transferred, and placed;

( c ) the moneys from time to time standing to the credit of the Principal Reserve Account shall be held as a reserve against the liability for the principal of moneys borrowed on the security of savings certificates;

( d ) whenever and so often as it appears to the Minister that the moneys standing to the credit of the Principal Reserve Account exceed the amount reasonably required as a reserve against the liability in respect of the principal of moneys borrowed and then outstanding on the security of savings certificates, the Minister may, if he so thinks proper, direct that there shall be transferred and paid from the Principal Reserve Account to the Exchequer, for or towards the reimbursement of sums paid out of the Central Fund or the growing produce thereof on foot of the repayment of the principal of moneys borrowed on the security of savings certificates, so much (whether the whole or a part) as the Minister shall think proper of the excess of the moneys then standing to the credit of the Principal Reserve Account over the amount appearing to him to be reasonably required as aforesaid.

(7) The following provisions shall apply and have effect in relation to the Interest Reserve Account, that is to say:—

( a ) the investments and moneys standing to the credit of the Fund immediately before the 1st day of April, 1943, shall be credited to the Interest Reserve Account and shall be deemed to have been placed to the credit of that Account on the said date;

( b ) all moneys paid to the Fund under sub-section (1) of the Principal Section after the 1st day of April, 1943, shall be placed to the credit of the Interest Reserve Account;

( c ) sub-section (3) of the Principal Section shall, as on and from the 1st day of April, 1943, apply and have effect in relation only to the Interest Reserve Account, and accordingly the references in the said sub-section to the Fund shall be construed and have effect as references to the Interest Reserve Account and shall be deemed to have had such effect as on and from the said date.

(8) Nothing in this section shall prejudice or affect any reference to the Fund which is contained in any Act passed after the enactment of the Principal Section and before the enactment of this section, and accordingly every such reference shall continue to have effect as if this section had not been enacted.

18.—Where any person was or shall be committed to prison (whether before or after the passing of this Act) by a court of competent jurisdiction for non-payment of a sum of money due to the Minister for Finance for the benefit of the Central Fund in respect of any tax or duty under the care and management of the Revenue Commissioners, the Revenue Commissioners are hereby authorised and required on the passing of this Act or at the expiration of six months from the date of the committal of such person to prison (whichever is the later) to order the discharge of such person from prison whether the sum for the non-payment of which such person was so committed shall or shall not have been paid.

19.—With a view to providing moneys to meet general charges which will fall upon the Central Fund, the sum of one hundred thousand pounds shall be transferred and paid from the Road Fund to the Exchequer at such time or times in the financial year ending on the 31st day of March, 1944, and in such manner as the Minister for Finance shall direct.

20.—All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

21.—(1) This Act may be cited as the Finance Act, 1943 .

(2) Part I of this Act shall be construed together with the Income Tax Acts, and Part II of this Act, so far as it relates to duties of customs, shall be construed together with the Customs Acts and, so far as it relates to duties of excise, shall be construed together with the statutes which relate to the duties of excise and the management of those duties.

(3) Part I of this Act shall be deemed to come into force on and shall take effect as on and from the 6th day of April, 1943.