Finance Act, 1989

Adoption Acts, 1952 to 1974
Adoption Acts, 1952 to 1988
Capital Acquisitions Tax Act, 1976	1976, No. 8
Capital Gains Tax Act, 1975	1975, No. 20
Central Bank Act, 1971	1971, No. 24
Companies Act, 1963	1963, No. 33
Corporation Tax Act, 1976	1976, No. 7
Customs and Inland Revenue Act, 1881	44 & 45 Vict., c. 12
Customs, Inland Revenue, and Savings Banks Act, 1877	40 & 41 Vict., c. 13
Customs-free Airport Act, 1947	1947, No. 5
European Communities Act, 1972	1972, No. 27
Finance (1909-10) Act, 1910	10 Edw. 7 & 1 Geo. 5, c. 8
Finance Act, 1919	9 & 10 Geo. 5, c. 32
Finance Act, 1925	1925, No. 28
Finance Act, 1926	1926, No. 35
Finance Act, 1929	1929, No. 32
Finance Act, 1930	1930, No. 20
Finance Act, 1931	1931, No. 31
Finance Act, 1938	1938, No, 25
Finance Act, 1940	1940, No. 14
Finance Act, 1943	1943, No. 16
Finance Act, 1946	1946, No. 15
Finance Act, 1950	1950, No. 18
Finance Act, 1956	1956, No. 22
Finance Act, 1958	1958, No. 25
Finance Act, 1960	1960, No. 19
Finance Act, 1961	1961, No. 23
Finance Act, 1964	1964, No. 15
Finance Act, 1965	1965, No. 22
Finance Act, 1968	1968, No. 33
Finance Act, 1969	1969, No. 21
Finance Act, 1970	1970, No. 14
Finance Act, 1971	1971, No. 23
Finance Act, 1973	1973, No. 19
Finance Act, 1974	1974, No. 27
Finance Act, 1975	1975, No. 6
Finance Act, 1976	1976, No. 16
Finance Act, 1978	1978, No. 21
Finance Act, 1979	1979, No. 11
Finance Act, 1980	1980, No. 14
Finance Act, 1981	1981, No. 16
Finance (No. 2) Act, 1981	1981, No. 28
Finance Act, 1982	1982, No. 14
Finance Act, 1983	1983, No. 15
Finance Act, 1984	1984, No. 9
Finance Act, 1985	1985, No. 10
Finance Act, 1986	1986, No. 13
Finance Act, 1987	1987, No. 10
Finance Act, 1988	1988, No. 12
Finance (Excise Duties) (Vehicles) Act, 1952	1952, No. 24
Finance (Excise Duty on Tobacco Products) Act, 1977	1977, No. 32
Finance (Miscellaneous Provisions) Act. 1956	1956, No. 47
Forgery Act, 1913	3 & 4 Geo. 5, c.27
Gaming and Lotteries Act, 1956	1956, No. 2
Housing Act, 1966	1966, No. 21
Income Tax Act, 1967	1967, No. 6
Industrial Development Act, 1986	1986, No. 9
Inland Revenue Act, 1880	43 & 44 Vict., c. 20
Intoxicating Liquor Act, 1927	1927, No. 15
Intoxicating Liquor Act, 1962	1962, No. 21
Intoxicating Liquor (General) Act, 1924	1924, No. 62
Landlord and Tenant (Ground Rents) (No. 2) Act, 1978	1978, No. 16
Medical Practitioners Act, 1978	1978, No. 4
Mercantile Marine Act, 1955	1955, No. 29
Postal and Telecommunications Services Act, 1983	1983, No. 24
Public Dance Halls Act, 1935	1935, No. 2
Refreshment Houses (Ireland) Act, 1860	23 & 24 Vict., c. 107
Registration of Clubs (Ireland) Act, 1904	4 Edw. 7, c. 9
Stamp Act, 1891	54 & 55 Vict., c. 39
Stamp Duties Management Act, 1891	54 & 55 Vict., c. 38
Succession Duty Act, 1853	16 & 17 Vict., c. 51
Tourist Traffic Acts, 1939 to 1987
Unit Trusts Act, 1972	1972, No. 17
Value-Added Tax Act, 1972	1972, No. 22
Value-Added Tax (Amendment) Act, 1978	1978, No. 34

Number 10 of 1989

FINANCE ACT, 1989

AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND 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.

[24th May, 1989]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX

CHAPTER I Income Tax

Amendment of provisions relating to exemption from income tax.

1.—As respects the year 1989-90 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended—

( a ) in section 1, by the substitution of the following subsections for subsection (2):

"(2) in this section 'the specified amount' means, subject to subsection 3—

( a ) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a)of the Income Tax Act, 1967 , £6,000, and

( b ) in any other case, £3,000.

(3) ( a ) For the purposes of this section and section 2, where a claimant proves that he has living, at any time during a year of assessment, any qualifying child, then, subject to subsection (4), the specified amount (within the meaning of this section or section 2, as the case may be) shall be increased, for that year of assessment, by £200 in respect of each such child.

( b ) Any question as to whether a child is a qualifying child for the purposes of this section or section 2 shall be determined on the same basis as it would be for the purposes of section 138A of the Income Tax Act, 1967 , but without regard to subsections (1) ( a ), (2), (3) and (5) of that section.

(4) Where, for any year of assessment, two or more individuals are or would, but for the provisions of this subsection, be entitled under subsection (3) to an increase in the specified amount (within the meaning of this section or section 2, as the case may be) in respect of the same child, the following provisions shall have effect, that is to say:

( a ) only one such increase under subsection (3) shall be allowed in respect of such child;

( b ) where such child is maintained by one individual only, that individual only shall be entitled to claim the increase;

( c ) where such child is maintained by more than one individual, each individual shall be entitled to claim such part of the increase as is proportionate to the amount expended on the child by that individual in relation to the total amount paid by all individuals towards the maintenance of the child;

( d ) in ascertaining for the purposes of this subsection whether an individual maintains a child and, if so, to what extent, any payment made by the individual for or towards the maintenance of the child which that individual is entitled to deduct in computing his total income for the purposes of the Income Tax Acts shall be deemed not to be a payment for or towards the maintenance of the child.",

and

( b ) in section 2, by the substitution of the following subsection for subsection (6):

"(6) In this section 'the specified amount' means, subject to subsection (3) of section 1—

( a ) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a)of the Income Tax Act, 1967 , £6,800:

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, 'the specified amount' means £8,000, and

( b ) in any other case £3 400:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, 'the specified amount' means £4,000.".

Alternation of rates of income tax.

2.— Section 2 of the Finance Act, 1984 , is hereby amended, as respects the year 1989-90 and subsequent years of assessment, by the substitution of the following Table for the Table to the said section:

"TABLE

PART I

Part of taxable income (1)	Rate of tax (2)	Description of rate (3)
The first £6,100	32 per cent.	the standard rate
The next £3,100	48 per cent.}	the higher rates
The remainder	56 per cent.}

PART II

Part of taxable income (1)	Rate of tax (2)	Description of rate (3)
The first £12,200	32 per cent.	the standard rate
The next £6,200	48 per cent.}	the higher rates
The remainder	56 per cent }

Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982 .

3.— Section 6 of the Finance Act, 1982 , shall have effect for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1989-90, as if in subsection (2)—

( a ) "1989-90" were substituted for "1982-83", and

( b ) "£286" were substituted for "£312" in each place where it occurs.

Relief for expenditure on certain buildings in designated areas.

4.—(1) ( a ) In this section—

"authorised person" means—

(i) an inspector or other officer of the Revenue Commissioners authorised by them in writing for the purposes of this section, or

(ii) a person nominated by the Commissioners of Public Works in Ireland, authorised by them in writing for the purposes of this section;

"designated area" has, subject to section 27 of the Finance Act, 1987 , the meaning assigned by section 41 of the Finance Act, 1986 ;

"owner", in relation to a building, includes an individual entitled to acquire the fee simple in a dwellinghouse under Part II of the Landlord and Tenant (Ground Rents) (No. 2) Act, 1978 , and references to "owns" and "owner-occupied", in relation to a building, shall be construed accordingly;

"qualifying building" means a building the site of which is wholly within a designated area and which, on application to the Commissioners of Public Works in Ireland in that behalf by the individual who owns the building, is determined by those Commissioners to be a building which is of significant scientific, historical, architectural or aesthetic interest;

"qualifying owner-occupied dwelling", in relation to an individual, means a qualifying building which is either—

(i) used at the time the relevant expenditure is incurred, or

(ii) first used after the relevant expenditure has been incurred,

by him as his sole or main residence;

"qualifying period" means the period commencing on the date of the passing of this Act and ending on the 31st day of May, 1991;

"relevant expenditure" in relation to an individual, means the amount of the expenditure incurred, during the qualifying period, by the individual in respect of any work of repair or restoration, or maintenance in the nature of repair or restoration, which is consistent with the original character or fabric of the building and is carried out on a qualifying owner-occupied dwelling of the individual.

( b ) For the purposes of this section, so much of any expenditure as is equal to any sum received, or to be received, directly or indirectly in respect of or by reference to that expenditure, or in respect of or by reference to the qualifying building or the work to which it relates, by the individual making a claim in respect of that expenditure under subsection (2) from the State, a public or local authority or any other person or under any contract of insurance or by way of compensation or otherwise shall not be regarded as having been incurred.

( c ) (i) Where relevant expenditure in relation to a qualifying building is incurred by two or more individuals, each of those individuals shall be treated as having incurred only so much of the expenditure as the inspector, to the best of his knowledge and judgement, considers to be just and reasonable and the expenditure shall be apportioned accordingly.

(ii) An apportionment made under subparagraph (i) may be amended by the Appeal Commissioners or by the Circuit Court on the hearing, or the rehearing, of an appeal against any relief granted on the basis of the apportionment.

(2) Subject to the provisions of this section, where an individual, having made a claim in that behalf, proves that he has incurred relevant expenditure in a year of assessment, he shall be entitled for that year of assessment to have a deduction made from his total income of an amount equal to 25 per cent. of the amount of the relevant expenditure and, in each of the five immediately subsequent years of assessment, to a like deduction equal to 5 per cent. of such relevant expenditure.

(3) No relief shall be allowed under this section for expenditure in respect of which relief may be claimed under any other provision of the Income Tax Acts.

( 4 ) ( a ) Where the Commissioners of Public Works in Ireland have made a determination that a building is a qualifying building and subsequently, by reason of any alteration made or to be made to the building, they consider that the building is, or will be, no longer a building which is of significant scientific, historical, architectural or aesthetic interest, they shall—

(i) by notice in writing given to the owner of the building, revoke the determination, and

(ii) notify the Revenue Commissioners of the revocation and the date thereof.

( b ) If relief has been given under this section to an individual in respect of relevant expenditure incurred in relation to a building which has had a determination revoked in accordance with paragraph (a), that relief shall, where that individual has caused the alteration to be made, be withdrawn and there shall be made on the individual all such assessments or additional assessments as are necessary to give effect to the provisions of this subsection.

( 5 ) ( a ) Where an individual makes a claim under subsection (2), an authorised person may, at any reasonable time, enter the qualifying building in respect of which the relevant expenditure has been incurred for the purpose of inspecting the building or the work in respect of which the expenditure to which the claim relates was incurred.

( b ) Whenever an authorised person exercises any power conferred on him by this subsection, he shall, on request, produce his authorisation for the purposes of this section to any person concerned.

( c ) Any person who obstructs or interferes with an authorised person in the course of exercising a power conferred on him by this subsection shall be guilty of an offence and shall be liable, on summary conviction, to a fine not exceeding £500.

(6) Any claim for relief under this section shall—

( a ) be made in such form as the Revenue Commissioners may from time to time prescribe, and

( b ) be accompanied by such statements in writing as regards the expenditure for which the relief is claimed, including statements by persons to whom payments were made, as may be indicated by the prescribed form.

(7) All such provisions of the Income Tax Acts as apply in relation to the deductions specified in sections 138 to 143 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply in relation to deductions under this section.

(8) Section 198 (1) (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , is hereby amended by the addition to paragraph (i) of the following subparagraph after subparagraph (xi) (inserted by the Finance Act, 1986 ):

"(xii) so far as it flows from relief under section 4 of the Finance Act, 1989 , in the proportions in which they incurred the expenditure giving rise to the relief,".

Amendment of section 2 (exemption of certain earnings of writers, composers and artists) of Finance Act, 1969 .

5.— Section 2 of the Finance Act, 1969 , is hereby amended by the insertion after subsection (5) of the following subsections:

"(5A) ( a ) Where—

(i) an individual—

(I) has made due claim (hereafter in this subsection referred to as a 'claim') to the Revenue Commissioners for a determination under clause (I) or (II) of subsection (2) ( a ) (ii) in relation to a work or works or to a particular work, as the case may be, that he has written, composed or executed, as the case may be, solely or jointly with another individual, and

(II) has, as respects the claim, complied with any request made to him under subsection (4) or (5) in the relevant period,

and

(ii) the Revenue Commissioners fail to make a determination under the said provisions in relation to the claim in the relevant period,

the individual may, by notice in writing given to the Revenue Commissioners within 30 days after the end of the relevant period, appeal to the Appeal Commissioners on the grounds that—

(A) the work or works is or are generally recognised as having cultural or artistic merit, or

(B) the particular work has cultural or artistic merit, as the case may be.

( b ) In this subsection 'relevant period' means, as respects a claim in relation to a work or works or a particular work, the period of 6 months commencing with—

(i) the date which is 6 months before the date of the passing of the Finance Act, 1989 , or

(ii) if later, the date on which a claim is first made in respect of that work or those works or the particular work, as the case may be.

(5B) The Appeal Commissioners shall hear and determine an appeal made to them under subsection (5A) as if it were an appeal against an assessment to income tax and, subject to subsection (5C), all the provisions of the Income Tax Act, 1967 , relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

( 5C ) ( a ) On the hearing of an appeal made under subsection (5A) the Appeal Commissioners may—

(i) after consideration of—

(I) any evidence in relation to the matter submitted to them by or on behalf of the individual concerned and by or on behalf of the Revenue Commissioners, and

(II) in relation to a work or works or a particular work, the work or works or the particular work,

and

(ii) after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them,

determine that the individual concerned has written, composed or executed, as the case may be, either solely or jointly with another individual—

(A) a work or works generally recognised as having cultural or artistic merit, or

(B) a particular work which has cultural or artistic merit,

and, where the Appeal Commissioners so determine, the individual shall be entitled to relief under subsection (3) ( a ) as if the determination had been made by the Revenue Commissioners under clause (I) or (II) of subsection (2) ( a ) (ii), as the case may be.

( b ) The provisions of this subsection shall, subject to any necessary modifications, apply to the rehearing of an appeal by a judge of the Circuit Court and, to the extent necessary, to the determination by the High Court of any question or questions of law arising on the statement of a case for the opinion of the High Court.

(5D) For the purposes of the hearing or rehearing of an appeal made under subsection (5A), the Revenue Commissioners may nominate any of their officers to act on their behalf.".

Amendment of section 8 (restriction of relief in respect of interest paid on certain loans at a reduced rate) of Finance Act, 1982 .

6.— Section 8 of the Finance Act, 1982 , is hereby amended, as respects the year 1989-90 and subsequent years of assessment, by the substitution in subsection (1) ( a ) of the following definitions, respectively, for the definitions of "preferential loan" and "the specified rate":

"preferential loan' means a loan, in respect of which no interest is payable or interest is payable at a preferential rate, made directly or indirectly to an individual or his spouse by a person who in relation to the individual or his spouse is an employer, but does not include any such loan in respect of which interest is payable at a rate that is not less than the rate of interest at which the employer in the course of his trade makes equivalent loans for similar purposes at arm's length to persons other than employees or their spouses;

'the specified rate', in relation to a preferential loan, means—

(i) in a case where—

(I) the interest which is paid on the preferential loan qualifies for relief under section 76 (1) ( c ) or 496 of, or paragraph 1 (2) of Part III of Schedule 6 to, the Income Tax Act, 1967 , or

(II) if no interest is paid on the preferential loan, the interest which would have been paid on that loan (if interest had been payable) would have so qualified,

the rate of 10 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, or

(ii) in a case where—

(I) the preferential loan is made to an employee by an employer,

(II) the making of loans for the purposes of purchasing a dwelling-house for occupation by the borrower as a residence, for a stated term of years at a rate of interest which does not vary for the duration of the loan, forms part of the trade of the employer, and

(III) the rate of interest at which the employer in the course of his trade at the time the preferential loan is or was made makes or made loans at arm's length to persons, other than employees, for the purposes of purchasing a dwelling-house for occupation by the borrower as a residence is less than 10 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations,

the first-mentioned rate in subparagraph (III), or

(iii) in any other case, the rate of 12 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations.".

Amendment of section 6 (relief in respect of interest) of Finance Act, 1987 .

7.— Section 6 of the Finance Act, 1987 , shall have effect in respect of any period beginning on or after the 6th day of April, 1989, as if in subsection (1) "80 per cent." were substituted for "90 per cent.' .

Amendment of provisions relating to relief in respect of premiums on certain insurances, etc.

8.—As respects the year 1989-90 and subsequent years of assessment, where an individual is entitled to relief under section 143 of the Income Tax Act, 1967 , the amount of such relief shall be an amount equal to 80 per cent. of the amount of the relief which, apart from this section, would otherwise have been given under that section.

Amendment of Chapter III (Income Tax: Relief for Investment in Corporate Trades) of Part I of Finance Act, 1984 .

9.—Chapter III of Part I of the Finance Act, 1984 , is hereby amended, as respects eligible shares issued on or after the 12th day of April, 1989—

( a ) in section 12 by the substitution in subsection (1) of the following proviso for the proviso (inserted by the Finance Act, 1987 ) to paragraph (c):

"Provided that, where the money raised was used, is being used, or is intended to be used, by the company for the purpose of purchasing a ship for use by it in the course of a qualifying shipping trade carried on by it, the aforementioned evidence shall include a certificate by the Minister for the Marine certifying that—

(i) the purchase of the ship was, is or would be eligible to be grant-aided under a statutory scheme of assistance for the purchase of ships administered by the Department of the Marine, and

(ii) the acquisition of the ship by the company represented, represents or would represent a beneficial addition to the shipping fleet registered in the State under Part II of the Mercantile Marine Act, 1955 , and

(iii) such other conditions, as may be laid down by the Minister for Finance, in consultation with the Minister for the Marine, in relation to the circumstances in which the purchase of the ship may be regarded as advancing the objective mentioned in paragraph (ii), have been met.",

( b ) by the insertion, after section 13, of the following section:

"Restriction of relief where amounts raised exceed permitted maximum.

13A—(1) Subject to subsection (2), where a company raises any amount through the issue (hereafter in this section referred to as the 'relevant issue') of eligible shares on any day falling on or after the 12th day of April, 1989, relief shall not be given in respect of the excess of the amount over the amount determined by the formula—

£2,500,000-A

where A is—

( a ) £2,500,000, or

( b ) an amount equal to the aggregate of all amounts raised by the company through the issue of eligible shares at any time before the relevant issue,

whichever is the lesser amount.

(2) In determining, for the purposes of the formula in subsection (1), the amount to which paragraph (b)in that subsection relates, account shall not be taken of any amount—

( a ) which is subscribed by a person other than an individual who qualifies for relief, or

( b ) in respect of which relief is precluded by virtue of section 13.

(3) Where, as a consequence of subsection (1), the giving of relief would be precluded on claims in respect of shares issued to two or more individuals, the available relief shall be divided between them respectively in proportion to the amounts which have been subscribed by them for the shares to which their claims relate and which would, apart from this section, be eligible for relief.",

( c ) in section 16—

(i) by the insertion, after the proviso to subsection (2), of the following additional proviso to that subsection:

"Provided also that—

(I) except where it forms part of the carrying on of qualifying shipping activities within the meaning of section 28 of the Finance Act, 1987 , the leasing of machinery or plant,

(II) the leasing of land or buildings, or

(III) the carrying on of financial activities,

shall not be regarded as qualifying trading operations for the purposes of this section and, for the purposes of this proviso—

'financial activities' means the provision of, and all matters relating to the provision of, financing or refinancing facilities by any means which involves, or has an effect equivalent to, the extension of credit;

'financing or refinancing facilities' includes—

(A) loans, mortgages, leasing, lease rental and hire-purchase, and all similar arrangements,

(B) equity investment,

(D) the underwriting of debt instruments and all other kinds of financial securities, and

(E) the purchase or sale of financial assets;

'financial assets' includes shares, gilts, bonds, foreign currencies and all kinds of futures, options and currency and interest rate swaps, and similar instruments, including commodity futures and commodity options, invoices and all types of receivables, obligations evidencing debt (including loans and deposits), leases and loan and lease portfolios, bills of exchange, acceptance credits and all other documents of title relating to the movement of goods, commercial paper, promissory notes and all other kinds of negotiable or transferable instruments.",

and

(ii) by the substitution, in subsection (2A) (inserted by the Finance Act, 1987 ), of the following paragraph for paragraph (a):

"( a ) the operation of tourist accommodation facilities such as hotels, guest houses, caravan and camping sites and self-catering accommodation for which the Bord maintains a register in accordance with the Tourist Traffic Acts, 1939 to 1987, other than such self-catering accommodation in—

(i) the county borough of Dublin,

(ii) the county borough of Cork,

(iii) the county borough of Limerick,

(iv) the county borough of Galway,

(v) the county borough of Waterford, and

(vi) the administrative county of Dublin,",

and

( d ) in section 17, by the insertion after subsection (2) of the following subsection:

"(2A) ( a ) Where in the relevant period an individual, either directly or indirectly—

(i) (I) acquires an option, where the exercise of it, either under the terms of the option or under the terms of any arrangement or understanding subject to which or otherwise in connection with which the option is acquired, would—

(A) bind the person from whom the option was acquired or any other person, or

(B) cause that person or such other person,

to purchase, or otherwise acquire, any eligible shares for a price which, having regard to the terms of the option or the terms of such arrangement or understanding and the net effect of those terms considered as a whole, is other than the market value of the eligible shares at the time the purchase or acquisition is made, or

(A) bind the person with whom the agreement is made or any other person, or

(B) cause that person or such other person,

to purchase, or otherwise acquire, any eligible shares in the manner described in clause (I),

(ii) (I) grants to any person an option, where the exercise of it, either under the terms of the option or under the terms of any arrangement or under standing subject to which or other wise in connection with which the option is granted, would bind the individual to dispose, or cause him to dispose, of any eligible shares to the person to whom he granted the option or any other person for a price which, having regard to the terms of the option or the terms of such arrangement or understanding and the net effect of those terms considered as a whole, is other than the market value of the eligible shares at the time the disposal is made, or

(II) enters into an agreement, where, either under the terms of the agreement or under the terms of any arrangement or understanding subject to which or otherwise in connection with which the agreement is made, it would bind the individual to dispose, or cause him to dispose, of any eligible shares to the person with whom the agreement is made or any other person in the manner described in clause (I),

he shall not be entitled to any relief in respect of the shares to which the option or the agreement relates.

( b ) For the purposes of this subsection references to an option or an agreement include references to a right or obligation to acquire or grant an option or enter into an agreement and references to the exercise of an option include references to the exercise of an option which may be acquired or granted by the exercise of such a right or under such an obligation. ".

Priority in winding up of certain amounts.

10.—For the purposes of subsection (2) ( a ) (iii) of section 285 of the Companies Act, 1963 —

( a ) the amount referred to in that subsection shall be deemed to include any amount—

(i) which, apart from the provisions of Regulation 31A (inserted by the Income Tax (Employments) Regulations, 1989 ( S.I. No. 58 of 1989 )) of the Income Tax (Employments) Regulations, 1960 ( S.I. No. 28 of 1960 ), would otherwise have been an amount due at the relevant date in respect of sums which an employer is liable under Chapter IV of Part V of the Income Tax Act, 1967 , and any regulation thereunder (other than the said Regulation 31A) to deduct from emoluments, to which the said Chapter IV applies, paid by him during the period of 12 months next before the relevant date,

(ii) reduced by any amount which he was liable under the said Chapter IV and any regulation thereunder to repay during the said period, and

(iii) with the addition of any interest payable under section 129 of the Income Tax Act, 1967 ,

and

( b ) the relevant date shall, notwithstanding the provisions of subsection (1) of the said section 285, be deemed to be the date which is the ninth day after the end of the income tax month in which the relevant date (within the meaning of the said subsection (1)) occurred.

CHAPTER II Income Tax, Corporation Tax and Capital Gains Tax

Farming: amendment of provisions relating in respect of increase in stock values.

11.—(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended by the substitution of "1990" for "1988" (inserted by the Finance Act, 1988 )-

( a ) in paragraph (iv) (inserted by the Finance Act, 1979 ) of the proviso to subsection (4) (a), and

( b ) in each place where it occurs in subsections (7) and (9) (inserted by the Finance Act, 1984 ),

and the said paragraph (iv), the said subsection (7) (apart from the proviso) and the said subsection (9) (apart from the proviso), as so amended, are set out in the Table to this subsection.

TABLE

(iv) a deduction shall not be allowed under the provisions of this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 1990.

(7) Where in relation to an accounting period a corn opening stock value exceeds its closing stock value, the amount of the excess (in this section referred to as the company's "decrease in stock value") shall period ends on a date before the 6th day of April, 1990, be treated in the computing of the company's trading income for the purposes of corporation tax, as a trading receipt of the company's trade for that accounting period:

(9) In the computation of a company's trading income for the purposes of corporation tax for any accounting period which ends on or after the 6th day of April, 1990, in which there is a decrease in stock value, there shall be treated as a trading receipt of the company's trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C

where—

A is the aggregate amount of the company's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1990,

B is the aggregate amount of the company's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1990, and

C is the aggregate of the amounts which under this subsection are treated as trading receipts of the company's trade for preceding accounting periods:

(2) Section 12 of the Finance Act, 1976 , is hereby amended—

( a ) by the substitution in subsection (3) of "1990-91" for "1988-89" (inserted by the Finance Act, 1988 ), and

( b ) by the substitution of "1990" for "1988" (inserted by the Finance Act, 1988 ) in each place where it occurs in subsections (5) and (6) (inserted by the Finance Act, 1984 ),

and the said subsection (3), the said subsection (5) (apart from the proviso) and the said subsection (6) (apart from the proviso), as so amended, are set out in the Table to this subsection.

TABLE

(3) Any deduction allowed by virtue of this section in computing a person's trading profits for an accounting period shall not have effect for any purpose of the Income Tax Acts for any year of assessment prior to the year 1974-75 or later than the year 1990-91.

(5) In the computation of a person's trading profits for an accounting period in which there is a decrease in stock value and which ends on a date in the period from the 6th day of April, 1976, to the 5th day of April, 1990, the amount of that decrease shall be treated as a trading receipt of the trade for that accounting period:

(6) In the computation of a person's trading profits for any accounting period in which there is a decrease in stock value and which ends on or after the 6th day of April, 1990, there shall be treated as a trading receipt of the trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C

where—

A is the aggregate amount of the person's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1990,

B is the aggregate amount of the person's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1990, and

C is the aggregate of the amounts which are treated as trading receipts of the person's trade for preceding accounting periods which ended on or after the 6th day of April, 1990:

(3) Where, in relation to an accounting period which ends on or after the 6th day of April, 1989, a person is entitled to a deduction under subsection (2) of section 31A of the Finance Act, 1975 , or under subsection (2) of section 12 of the Finance Act, 1976 , in respect of an increase in stock value and a decrease in stock value is, in accordance with subsection (7) or (9) of the said section 31A or subsection (5) or (6) of the said section 12, to be treated as a trading receipt of the person's trade for a subsequent accounting period, then the following provisions shall have effect as if the references therein to "10 years" were references to "7 years", that is to say—

( a ) in the said section 31A, in the definition of A in the proviso to subsection (7) and in the definition of D in the proviso to subsection (9),

( b ) in the said section 12, in the definition of A in the proviso to subsection (5) and in the definition of D in the proviso to subsection (6), and

( c ) in the Finance Act, 1982 , in the definition of A in the proviso (inserted by the Finance Act, 1984 ) to subsection (3) of section 13.

(4) This section shall have effect only as respects a trade of farming.

Capital allowances for, and deduction in respect of, vehicles.

12.—(1) (a) Sections 25 to 29 of the Finance Act, 1973 , shall have effect, in relation to expenditure incurred on the provision or hiring of a vehicle to which those sections apply, as if for "£2,500", in each place where it occurs in those sections, there were substituted "£7,000".

( b ) The reference in paragraph (a) to expenditure incurred on the provision or hiring of a vehicle does not include—

(i) as respects the said sections 25 to 27, a reference to expenditure incurred before the 26th day of January, 1989, or incurred within 12 months after that day under a contract entered into before that day, and

(ii) as respects subsections (2) and (3) of the said section 28 and the said section 29, a reference to expenditure under a contract entered into before the said 26th day of January, 1989.

(2) Section 32 of the Finance Act, 1976 , shall have effect, in relation to qualifying expenditure (within the meaning of that section) incurred after the 25th day of January, 1989, as if for "£3,500" in each place where it occurs, there were substituted "£7,000".

Amendment of section 251 (initial allowances for machinery and plant) of Income Tax Act, 1967 .

13.— Section 251 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (7) (inserted by section 43 of the Finance Act, 1988 ) of the following subsection—

"(7) Where an allowance in respect of capital expenditure incurred on or after the 1st day of April, 1989, on the provision of new machinery or plant is made under this section for any chargeable period—

( a ) no allowance for wear and tear of the said machinery or plant shall be made under section 241 for that chargeable period, and

( b ) an allowance for wear and tear of the said machinery or plant which falls to be made under the said section 241 for any chargeable period subsequent to that chargeable period shall not be increased under section 11 of the Finance Act, 1967 , or under section 26 of the Finance Act, 1971 . ".

Amendment of section 254 (industrial building allowance) of Income Tax, 1967.

14.— Section 254 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (7) (inserted by section 44 of the Finance Act, 1988 ) of the following subsection:

"(7) Where an allowance in respect of capital expenditure incurred on or after the 1st day of April, 1989, on the construction of a building or structure is made under this section for any chargeable period—

( a ) no allowance in relation to that capital expenditure shall be made under section 264 for that chargeable period, and

( b ) an allowance in relation to that capital expenditure which falls to be made under the said section 264 for any chargeable period subsequent to that chargeable period shall not be increased under section 25 of the Finance Act, 1978 .".

Amendment of section 22 (farming: allowance for capital expenditure on construction of buildings and other works) of Finance Act, 1974 .

15.— Section 22 (as amended by section 52 of the Finance Act, 1988 ) of the Finance Act, 1974 , is hereby amended by the substitution for paragraph (b)in the proviso to subsection (2) of the following paragraph:

"( b ) the maximum farm buildings allowance to be made under this section by means of an allowance increased under paragraph (a) -

(i) in relation to capital expenditure incurred before the 1st day of April, 1989, shall not, for any chargeable period, exceed three-tenths of that capital expenditure, and

(ii) in relation to capital expenditure incurred on or after the 1st day of April, 1989, whether claimed in one chargeable period or more than one such period, shall not, in the aggregate, exceed one-half of that capital expenditure.".

Amendment of section 25 (increase of writing-down allowances for certain industrial building) of Finance Act, 1978 .

16.— Section 25 of the Finance Act, 1978 , is hereby amended by the addition after subsection (2) of the following subsection:

"(3) Where for any chargeable period an allowance under section 264 of the Income Tax Act, 1967 , in respect of qualifying expenditure is increased under this section, no allowance under Chapter 11 of Part XV of the said Act shall be made in respect of that qualifying expenditure for that or any subsequent chargeable period.".

Amendment of section 26 (allowance for certain capital expenditure on roads, bridges, etc.) of Finance Act, 1981 .

17.— Section 26 (as amended by section 39 of the Finance Act, 1984 ) of the Finance Act, 1981 , is hereby amended as respects any relevant agreement (within the meaning of that section) entered into on or after the 6th day of April, 1987—

( a ) in subsection (1)

(i) by the substitution, in the definition of "qualifying period", of "1992" for "1989" and

(ii) by the insertion after "agreement", in the definition of "relevant expenditure", of ", including interest on money borrowed to meet such capital expenditure",

and the said definitions, as so amended, are set out in the Table to this section, and

( b ) by the substitution for subsection (2) of the following subsection:

"(2) Where a person, having made a claim in that behalf, proves, as respects a chargeable period, that relevant income was receivable and relevant expenditure was incurred by him in the chargeable period or its basis period by virtue of the relevant agreement giving rise to the relevant income, he shall, subject to subsection (3), be entitled, for the purpose only of ascertaining the amount (if any) of that relevant income on which he is to be charged to tax—

( a ) to an allowance equal to one-half of the relevant expenditure for the said chargeable period, and

( b ) to an allowance equal to one-tenth of the relevant expenditure for each of the next five chargeable periods in which the said relevant income is receivable by him:

Provided that all relevant expenditure so incurred prior to the chargeable period in which relevant income is first receivable shall be deemed to have been incurred on the first day of that chargeable period.

TABLE

"qualifying period" means the period commencing on the 29th day of January, 1981, and ending on the 31st day of March, 1992;

"relevant expenditure" means capital expenditure incurred by a person during the qualifying period by virtue of a relevant agreement, including interest on money borrowing to meet such capital expenditure, but does not include any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any provision of the Tax Acts other than this section;

Taxation of collective investment undertakings.

18.—(1) In this section and the First Schedule-

"accounting period" means, in relation to a collective investment undertaking, the chargeable period or its basis period (within the meaning of paragraph 1 (2) of the First Schedule to the Corporation Tax Act, 1976 ) on the income or profits of which the undertaking is chargeable to income tax or corporation tax, as the case may be, for any chargeable period (within the same meaning), or would be so chargeable but for an insufficiency of income or profits:

Provided that—

( a ) where two basis periods overlap, the period common to both shall be deemed to fall into the first basis period only,

( b ) where there is an interval between the end of the basis period for one chargeable period and the basis period for the next chargeable period, then, the interval shall be deemed to be part of the second basis period, and

( c ) the reference in paragraph (a) to the overlapping of two periods shall be construed as including a reference to the coincidence of two periods or to the inclusion of one period in another, and the reference to the period common to both shall be construed accordingly;

"the Acts" means the Tax Acts and the Capital Gains Tax Acts;

"the airport" has the same meaning as it has in the Customs-free Airport Act, 1947 ;

"appropriate tax" means, in relation to the amount of any relevant payment made by a collective investment undertaking or in relation to any amount of undistributed relevant income of such an undertaking, as the case may be, a sum representing tax on the amount of the payment or the amount of the undistributed relevant income, as appropriate, at a rate equal to the standard rate of income tax in force at the time of the payment or at the end of the accounting period to which the undistributed relevant income relates, as the case may be, after making a deduction from that sum of an amount equal to, or to the aggregate of—

( a ) in the case of a relevant payment—

(i) in so far as it is made, wholly or partly, out of relevant income which at a previous date had been or formed part of the undistributed relevant income of the undertaking, the amount of any appropriate tax deducted from the relevant income, or, where the payment, or that part of it which is made out of relevant income, is less than the relevant income, from such part of the relevant income as is represented by the payment, or that part of the payment, as the case may be, and

(ii) any other amount or amounts of tax deducted from the relevant profits out of which the relevant payment is made, or, where the payment is less than the profits, from such part of the profits as is represented by the payment, under any of the provisions of the Acts apart from this section and which is or are not repayable to the collective investment undertaking,

( b ) in the case of an amount of undistributed relevant income, any amount or amounts of tax deducted from the income under any of the provisions of the Acts apart from this section and which is or are not repayable to the collective investment undertaking:

Provided that the amount of the deduction shall not exceed the amount of the sum;

"the Area" has the same meaning as it has for the purposes of section 39B (inserted by the Finance Act, 1987 ) of the Finance Act, 1980 ;

"chargeable gains" has the same meaning as in the Capital Gains Tax Act, 1975 ;

"collective investment undertaking" means—

( a ) a registered unit trust scheme within the meaning of the Unit Trusts Act, 1972 , and

( b ) any other undertaking which is an undertaking for collective investment in transferable securities within the meaning of the relevant Regulations, being an undertaking which holds an authorisation issued pursuant to the relevant Regulations and that authorisation has not been revoked;

"distribution" has the same meaning as it has for the purposes of the Corporation Tax Acts;

"qualified company" has, in relation to any business of a collective investment undertaking carried on in—

( a ) the airport, the same meaning as it has for the purposes of section 39A (inserted by the Finance Act, 1981 ) of the Finance Act, 1980 , or

( b ) the Area, the same meaning as it has for the purposes of section 39B (inserted by the Finance Act, 1987 ) of the said Finance Act, 1980 ;

"qualifying management company" means, in relation to a collective investment undertaking, a qualified company which, in the course of relevant trading operations carried on by the qualified company, manages the whole or any part of the investments and other activities of the business of the undertaking;

"relevant gains" means, in relation to a collective investment undertaking, gains accruing to the undertaking being gains which would constitute chargeable gains in the hands of a person resident in the State;

"relevant income" means, in relation to a collective investment undertaking, any amounts of income, profits or gains which arise to or are receivable by the collective investment undertaking being amounts of income, profits or gains—

( a ) which are, or are to be, paid to unit holders as relevant payments, or

( b ) out of which relevant payments are, or are to be, made to unit holders, or

( c ) which are, or are to be, accumulated for the benefit of, or invested in transferable securities for the benefit of, unit holders,

and which if they arose to an individual resident in the State would, in the hands of the individual, constitute income for the purposes of income tax;

"relevant payment" means a payment made to a unit holder by a collective investment undertaking by reason of rights conferred on the unit holder as a result of holding a unit or units in the collective investment undertaking, other than a payment made in respect of the cancellation, redemption or repurchase of a unit;

"relevant profits" means, in relation to a collective investment undertaking, the relevant income and relevant gains of the undertaking;

"relevant Regulations" means the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 ( S.I. No. 78 of 1989 );

"relevant trading operations" has, in relation to any business of a collective investment undertaking carried on by a qualified company in—

( a ) the airport, the same meaning as it has for the purposes of section 39A (inserted by the Finance Act, 1981 ) of the Finance Act, 1980 , or

( b ) the Area, the same meaning as it has for the purposes of section 39B (inserted by the Finance Act, 1987 ) of the said Finance Act, 1980 ;

"return" means a return under paragraph 1 (2) of the First Schedule;

"specified collective investment undertaking" means a collective investment undertaking—

( a ) most of the business of which, to the extent that it is carried on in the State—

(i) (I) is carried on in the Area by the undertaking or by a qualifying management company of the undertaking or by the undertaking and the qualifying management company of the undertaking, or

(II) is not so carried on in the Area but—

(A) is so carried on in the State,

(B) would be so carried on in the Area but for circumstances outside the control of the person or persons carrying on the business, and

(ii) is carried on in the airport by the undertaking or by a qualifying management company of the undertaking or by the undertaking and the qualifying management company of the undertaking,

and

( b ) save to the extent that such units are held by the undertaking itself or by the qualifying management company of the undertaking, all the holders of units in the undertaking are persons resident outside the State;

"tax" means income tax, corporation tax or capital gains tax, as maybe appropriate;

"transferable securities" has the same meaning as in the relevant Regulations;

"undistributed relevant income" means, in relation to a collective investment undertaking, any relevant income arising to or receivable by the undertaking in an accounting period of the undertaking and which at the end of the accounting period has not been paid to the unit holders and from which appropriate tax has not previously been deducted;

"unit" includes a share and any other instrument granting an entitlement—

( a ) to a share of the investments or relevant profits of, or

( b ) to receive a distribution from,

a collective investment undertaking;

"unit holder" means, in relation to a collective investment undertaking, any person who by reason of the holding of a unit, or under the terms of a unit, in the undertaking is entitled to a share of any of the investments or relevant profits of, or to receive a distribution from, the undertaking.

(2) For the purposes of this section—

( a ) where any payment is made out of relevant profits, or out of any part there-of, from which any tax, including appropriate tax, has been deducted and the payment is less than the relevant profits, or that part thereof, the amount of the tax so deducted which is referable to the part of the profits represented by the payment shall be the amount which bears to the total amount of the tax deducted from the relevant profits, or the part thereof, the same proportion as the amount of the payment bears to the amount of the relevant profits, or the part thereof, as the case may be, and

( b ) any reference in this section to the amount of a relevant payment shall be construed as a reference to the amount which would be the amount of the relevant payment if the appropriate tax were not to be deducted from the relevant payment or from any undistributed relevant income out of which the relevant payment, or any part thereof, is made.

(3) Notwithstanding anything in the Acts, but subject to subsection (5), a collective investment undertaking shall not be chargeable to tax in respect of relevant profits but the said relevant profits shall be chargeable to tax in the hands of any unit holder, including the undertaking, to whom a relevant payment of or out of the relevant profits is made if, and to the extent that, the unit holder would be chargeable to tax in the State on such relevant profits, or on such part of the relevant profits as is represented by the payment, on the basis that and in all respects as if, subject to subsections (4) and (6), the relevant profits, or that part of the relevant profits, had arisen or accrued to the unit holder without passing through the hands of the under-taking.

(4) Where, pursuant to subsection (3), a unit holder is to be charged to tax on a relevant payment—

( a ) in so far as any amount of the relevant payment on which he is to be so charged is, or is made out of, relevant income, he shall be charged to tax on that amount under Case IV of Schedule D as if it were an amount of income arising to him at the time the payment is made, and

( b ) in so far as any amount of the relevant payment on which he is to be so charged is, or is made out of, relevant gains, it shall be treated as a capital distribution within the meaning of section 31 of the Capital Gains Tax Act, 1975 , and, if it is not already the case, that Act shall apply in all respects as if the said amount of the relevant payment were a capital distribution made by a unit trust and the unit or units in respect of which it is paid were a unit or units in a unit trust.

( 5 ) ( a ) Where a collective investment undertaking, which is not a specified collective investment undertaking—

(i) makes a relevant payment of, or out of, relevant profits to a unit holder who is resident in the State, or

(ii) has at the end of an accounting period of the undertaking any undistributed relevant income,

it shall deduct out of the amount of the relevant payment or the amount of the undistributed relevant income, as the case may be, the appropriate tax; and the unit holder to whom the relevant payment is made or the unit holder or unit holders entitled to the relevant income, as the case may be, shall allow the deduction and the collective investment undertaking shall, on the making of the said relevant payment to the unit holder or on the making of any relevant payment out of the undistributed relevant income to any unit holder, as the case may be, be acquitted and discharged of so much money as is represented by the deduction, or, where the relevant payment is less than the amount of the undistributed relevant income, by so much of the deduction as is referable to the relevant payment, as if the amount of money had actually been paid to the unit holder.

( b ) The First Schedule shall have effect for the purposes of supplementing this subsection.

( 6 ) ( a ) Where a unit holder receives a relevant payment from a collective investment undertaking, which is not a specified collective investment undertaking, and appropriate tax has been deducted from the payment, or from the relevant profits, or part thereof, out of which the payment is made, then the unit holder shall—

(i) if he is not resident in the State for tax purposes at the time the payment is made, be entitled, on due claim and on proof of the facts, to repayment of the appropriate tax, or so much of it as is referable to the relevant payment, as the case may be, or

(ii) in any other case, to have his liability to tax under any assessment made in respect of the relevant payment, or any part thereof, reduced by a sum equal to so much, if any, of the appropriate tax as is referable to the amount of the relevant payment contained in the assessment and, where the appropriate tax so referable exceeds his liability to tax in respect of the relevant payment, or in respect of that part of the relevant payment contained in the assessment, to repayment of the excess.

( b ) For the purposes of paragraph (a) (ii), the inspector, or on appeal, the Appeal Commissioners, shall make such apportionment of the appropriate tax deducted from a relevant payment, or from the relevant profits out of which it, or any part of it, is made as is just and reasonable to determine the amount of the appropriate tax, if any, referable to any part of the relevant payment contained in an assessment.

(7) Section 32 of the Capital Gains Tax Act, 1975 , shall not apply as on and from—

( a ) the passing of this Act, to—

(i) a qualifying unit trust (within the meaning of the said section 32), and

(ii) the disposal of qualifying units (within the same meaning) in the said qualifying unit trust,

where the qualifying unit trust is also a specified collective investment undertaking, and

( b ) (i) the 6th day of April, 1990,

(ii) where this section applies by virtue of subsection (12) (b) on an earlier day to a qualifying unit trust which is a collective investment undertaking, such earlier day in respect of the qualifying unit trust,

to such a qualifying unit trust or to the disposal of such qualifying units in the qualifying unit trust, where the qualifying unit trust is a collective investment undertaking without also being a specified collective investment undertaking.

(8) Section 13 of the Finance Act, 1976 , shall not apply to a collective investment undertaking if, but for this subsection, it would otherwise apply.

(9) As respects any collective investment undertaking which is a company (within the meaning of the Corporation Tax Acts)—

( a ) a relevant payment made out of the relevant profits of the undertaking, or a payment made in respect of the cancellation, redemption or repurchase of a unit in the undertaking, shall not be treated as a distribution for any of the purposes of the Tax Acts, and

( b ) if, but for this subsection, it would otherwise apply, section 101 of the Corporation Tax Act, 1976 , shall not apply to the collective investment undertaking.

(10) For the purpose of any arrangement having the force of law by reason of section 361 of the Income Tax Act, 1967 , a collective investment undertaking shall be deemed not to be liable to tax in the State or to be resident therein.

(11) Notwithstanding the provisions of section 200 of the Income Tax Act, 1967 , a person not resident in the State shall not, by virtue of those provisions, be assessable and chargeable in the name of an agent in respect of a relevant payment made out of the relevant profits of a collective investment undertaking.

(12) This section shall have effect as on and from—

( a ) in the case of a specified collective investment undertaking, the passing of this Act, and

( b ) in the case of any other collective investment undertaking, the 6th day of April, 1990, or such earlier day, not being earlier than the 6th day of April, 1989, as the Revenue Commissioners may agree to in writing with any such other collective investment undertaking in respect of that undertaking.

Returns by certain intermediaries in relation to UCITS.

19.—(1) In this section—

"distribution" has the same meaning as it has for the purposes of the Corporation Tax Acts;

"intermediary" means any person who provides relevant facilities in relation to a relevant UCITS;

"relevant Directives" means Council Directive 85/611/EEC* ¹ (being a Directive on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS)) and any Directive amending that Council Directive;

"relevant facilities" means, in relation to a relevant UCITS—

( a ) the marketing in the State of the units of the relevant UCITS,

( b ) the acting in the State as an intermediary in the purchase of the units of the relevant UCITS by or on behalf of persons resident in the State or in the sale to such persons of such units, and

( c ) the provision in the State on behalf of the relevant UCITS of facilities for the making of payments to holders of its units, the repurchase or redemption of its units or the making available of the information which the relevant UCITS is duly obliged to provide for the purposes of the relevant Directives;

"relevant UCITS" means an undertaking which—

( a ) is situated in a member state of the European Community, other than the State,

( b ) is a UCITS for the purposes of the relevant Directives, and

( c ) markets its units in the State;

"UCITS" means an undertaking for collective investment in transferable securities to which the relevant Directives relate;

"units" includes shares and any other instruments granting an entitlement to—

( a ) share in the investments or income of, or

( b ) receive a distribution from,

a relevant UCITS.

(2) An intermediary shall, if required to do so by notice from an inspector, prepare and deliver to the inspector within such time, being not less than 30 days, as shall be specified in the notice a return of—

( a ) the names and addresses of all persons resident in the State in respect of whom the intermediary has in the course of providing relevant facilities in relation to a relevant UCITS during such period as shall be specified in the notice—

(i) acted as an intermediary in the purchase by or on behalf of any of those persons of units in the relevant UCITS or in the sale to such persons of such units,

(ii) provided facilities for the making of payments by the relevant UCITS to any of those persons who hold units of the relevant UCITS, and

(iii) provided facilities for the repurchase or redemption of units of the relevant UCITS held by any of those persons,

and

( b ) where appropriate, in respect of each such person—

(i) the name and address of each relevant UCITS—

(I) the units of which have been so purchased by, or on behalf of, or sold to that person in that period,

(II) on whose behalf facilities have been provided for the making of payments by the relevant UCITS to that person in that period, and

(III) on whose behalf facilities have been provided for the repurchase or redemption by the relevant UCITS in the period of units in the relevant UCITS held by that person,

and

(ii) (I) the value or total value of the units so purchased by, or on behalf of, or sold to that person,

(II) the amount of the payments so made by the relevant UCITS to that person, and

(III) the value or total value of the units held by that person which were so repurchased or redeemed by the relevant UCITS.

(3) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column 2 of "Finance Act, 1989 , section 19".

CHAPTER III Corporation Tax

Amendment of section 36 (investment income reserved for policy holders) of Corporation Tax Act, 1976 .

20.— Section 36 of the Corporation Tax Act, 1976 , is hereby amended by the substitution of the following subsection for subsection (2):

"(2) If on the claim the company proves that it has, for any financial year for which the rate of corporation tax exceeds 35 per cent., borne corporation tax in respect of any of the said unrelieved income, the company shall be entitled to repayment of so much of that tax borne by it for that year as is equal to the amount by which—

( a ) the corporation tax borne by the company for that year in respect of the part specified in subsection (5) of the said unrelieved income,

exceeds—

( b ) the corporation tax which would have been so borne in respect of that part of that income if the rate of corporation tax for that year had been 35 per cent.".

Amendment of Part IX (Schedule F and Company Distributions) of Corporation Tax Act, 1976 .

21.—(1) Part IX of the Corporation Tax Act, 1976 , is hereby amended by the substitution for section 84A (inserted by section 41 of the Finance Act, 1984 ) of the following section:

"Limitation on meaning of 'distribution'.

84A—(1). Any interest or other distribution which—

( a ) is paid on or after the 12th day of April, 1989, out of assets of a company (here after in this section referred to as 'the borrower') to another company which is within the charge to corporation tax, and

( b ) is so paid in respect of a security (here-after in this section referred to as a 'relevant security') falling within subparagraph (ii), (iii) (I) or (v) of section 84 (2) ( d ),

shall not be a distribution for the purposes of this Act unless the application of this subsection is excluded by subsection (2) or (10).

(2) Subject to subsections (3) and (4), subsection (1) shall not apply to any interest which is paid by the borrower, in an accounting period of the borrower, to another company in respect of relevant principal advanced by that other company, where—

( a ) in that accounting period, the borrower carries on in the State a specified trade,

( b ) the relevant principal, in respect of which the interest is paid, is used in the course of the said specified trade—

(i) for the activities of the trade which consist of the manufacture of goods within the meaning of subsection (6), or

(ii) where subsection (7) applies, for the activities of the trade which consist of such selling by whole sale as is referred to in paragraph (ii) of the definition of 'specified trade' in the said subsection (7),

and

( c ) the interest, if it were not a distribution, would be treated as a trading expense of that trade for that accounting period.

(3) Notwithstanding subsection (2), where at any time after the 12th day of April, 1989, the total of the amounts of relevant principal (hereafter in this subsection referred to as the 'current amounts of relevant principal') advanced by a company in respect of relevant securities held, directly or indirectly, by the company at that time is in excess of a limit, being a limit equal to 110 per cent. of the total of the amounts of relevant principal advanced by the company in respect of relevant securities held, directly or indirectly, by the company on the said 12th day of April, 1989, then such part of any interest paid at that time to the company in respect of relevant principal as bears, in relation to the total amount of interest so paid to the company, the same proportion as the said excess bears, in relation to the current amounts of relevant principal, shall not be treated as a distribution for the purposes of this Act in the hands of the company.

(4) Subsection (2) shall not apply to interest paid in respect of relevant principal to a company which on the 12th day of April, 1989, had no outstanding amounts of relevant principal advanced.

(5) In subsections (2), (3) and (4), 'relevant principal' means an amount of money advanced to a borrower by a company which is within the charge to corporation tax and the ordinary trading activities of the company include the lending of money where—

( a ) the consideration given by the borrower for that amount is a relevant security, and

( b ) interest or any other distribution is paid out of the assets of the borrower in respect of that security.

(6) Subject to subsection (7), in subsection (2) 'specified trade' means a trade which consists wholly or mainly of the manufacture of goods including activities which would, if the borrower were to make a claim for relief in respect of the trade under Chapter VI of Part I of the Finance Act, 1980 , fall to be regarded for the purposes of that Chapter as the manufacture of goods, but does not include trading activities in respect of which a certificate has been given by the Minister for Finance under section 39A (inserted by the Finance Act, 1981 ) of the Finance Act, 1980 .

(7) Where the borrower mentioned in subsection (2) is a 75 per cent. subsidiary of—

( a ) an agricultural society, or

( b ) a fishery society,

'specified trade', in that subsection, means a trade of the borrower which consists wholly or mainly of either or both of—

(i) the manufacture of goods within the meaning of subsection (6), and

(ii) the selling by wholesale of—

(I) where paragraph (a)applies, agricultural products, or

(II) where paragraph (b)applies, fish.

(8) For the purposes of subsections (6) and (7), a trade shall be regarded, as respects an accounting period, as consisting wholly or mainly of particular activities if, but only if, the total amount receivable by the borrower from sales made in the course of those activities in the accounting period is not less than 75 per cent. of the total amount receivable by the borrower from all sales made in the course of the trade in that period.

(9) In subsection (7)—

'agricultural society' and 'fishery society' have the meanings assigned to them, respectively, by section 18 of the Finance Act, 1978 ;

'selling by wholesale' means selling goods of any class to a person who carries on a business of selling goods of that class or who uses goods of that class for the purposes of a trade or undertaking carried on by him.

(10) Subsection (1) shall not apply in a case where the consideration given by the borrower for the use of the principal secured represents more than a reasonable commercial return for the use of that principal:

Provided that, where this subsection applies, nothing in subparagraph (ii), (iii) (I) or (v) of section 84 (2) ( d ) shall operate so as to treat as a distribution for the purposes of this Act so much of the interest or other distribution as represents a reasonable commercial return for the use of that principal.".

(2) The provisions of section 84A of the Corporation Tax Act, 1976 , which were in force immediately before the commencement of this section shall, notwithstanding subsection (1), continue to have effect in respect of any interest or other distribution paid in respect of a security falling within subparagraph (ii), (iii) (I) or (v) of section 84 (2) (d) of the Corporation Tax Act, 1976 , where—

( a ) the principal secured has been advanced by a company out of money subscribed for the share capital of the company and that share capital is beneficially owned directly or indirectly by a person or persons resident outside the State, or

( b ) the interest or other distribution is paid on or before the 31st day of December, 1991, in respect of a security issued before the 12th day of April, 1989.

Amendment of Chapter VI (manufacturing companies) of Part I of Finance Act, 1980 .

22.—Chapter VI (as amended by section 45 of the Finance Act, 1984 ) of Part I of the Finance Act, 1980 , is hereby amended—

( a ) by the substitution in section 38 for the definition of "relevant accounting period" of the following definition:

"'relevant accounting period' means an accounting period or part of an accounting period of a company falling within the period from—

( a ) where subsection (1CC) (inserted by section 45 of the Finance Act, 1984 ) of section 39 applies, the 13th day of April, 1984,

( b ) where subsection (1CC) (as so inserted and amended by section 22 of the Finance Act, 1989 ) of section 39 applies, the 6th day of April, 1989, or

( c ) in any other case, the 1st day of January, 1981,

to the 31st day of December, 2000;",

and

( b ) by the substitution in subsection (1CC) of section 39 of the following paragraph for paragraph (a):

"( a ) In this subsection 'computer services' means any or all of the following:

(i) data processing services,

(ii) software development services, and

(iii) technical or consultancy services which relate to either or both subparagraphs (i) and (ii),

the work on the rendering of which is carried out in the State in the course of a service undertaking in respect of which an employment grant was made by the Industrial Development Authority under section 25 of the Industrial Development Act, 1986 .".

Amendment of section 39A (relief in relation to income from certain trading operations carried on in Shannon Airport) of Finance Act, 1980 .

23.—Section 39A (inserted by the Finance Act, 1981 ) of the Finance Act, 1980 , is hereby amended by the deletion of subsections (8) and(9).

Amendment of section 45 (distributions) of Finance Act, 1980 .

24.—As respects distributions made by a company on or after the 6th day of April, 1989, section 45 (as amended by the Finance Act, 1988 ) of the Finance Act, 1980 , is hereby amended:

( a ) in paragraph (a)of subsection 1—

(i) by the insertion after "subsection (1A)" of "or section 25 of the Finance Act, 1989 ,",

(ii) by the substitution for "is equal to" of "does not exceed",

(iii) by the substitution for the formula therein of the following formula:

[image not available: a10y1989s24-1.bmp]

and

(iv) by the substitution for the definition of "U" of the following:

"U is the amount of relevant distributions made by the company before the 6th day of April, 1989, which—

(i) were made for the accounting period, or

(ii) would be deemed to have been made for the accounting period by virtue of subsections (3) and (6) of section 64 of the Corporation Tax Act, 1976 , if—

(I) the said subsections (3) and (6) were treated as applying for the purposes of this definition as they apply for the purposes of the said section 64, and

(II) "relevant distribution" and "distributable manufacturing income" were substituted for "distribution" and "distributable income", respectively, wherever those terms occur in the said subsections (3) and (6),

W is the amount of the distributions made by the company before the 6th day of April, 1989, which—

(i) were made for the accounting period, or

(ii) would be deemed to have been made for the accounting period by virtue of subsections (3) and (6) of section 64 of the Corporation Tax Act, 1976 , if—

(I) the said subsections (3) and (6) were treated as applying for the purposes of this definition as they apply for the purposes of the said section 64, and

(II) every reference to 'distributable income of the company' in the said subsection (3) were a reference to the amount determined by the formula

(R – S) + T

where R, S and T have the same meanings as otherwise in this paragraph,

and",

( b ) in subsection (1A), by the substitution for the first proviso of the following:

"Provided that where a distribution made by a company is—

( a ) an interim dividend paid before the 6th day of April, 1990, by the directors of the company, pursuant to powers conferred upon them by the articles of association of the company, in respect of the profits of the accounting period in which it is paid, or

( b ) a distribution by virtue only of subparagraph (ii), (iii) (I) or (v) of section 84 (2) ( d ) of the Corporation Tax Act, 1976 , or

( c ) a distribution made in respect of shares of a type referred to in paragraph (c)of the definition of 'preference shares' in subsection (1) of section 42 (as amended by this Act) of the Finance Act, 1984 ,

it shall be treated, subject to the following proviso, as having been made for the accounting period in which the said first-mentioned day falls:",

( c ) in paragraph (a)of subsection (1B), by the substitution of "W" for "U" in each place where it occurs, and

( d ) in subsection (2) by the deletion of ",by virtue of subsections (1) and (1A)," and the insertion after "treated" where it first occurs of "for the purposes of this subsection",

and the said paragraph (a)of subsection (1), subsection (1B) (other than paragraph (b) ) and subsection (2), as so amended, are set out in the Table to this section.

TABLE

(1) ( a ) There shall be treated as a specified distribution for the purposes of subsection (2) so much of a distribution (hereafter in this paragraph referred to as "the first-mentioned distribution") treated under subsection (1A) or section 25 of the Finance Act, 1989 , as made by a company for an accounting period as does not exceed the amount, which may be nil, determined by the formula

[image not available: a10y1989s24-1.bmp]

where, subject to sections 46 to 49—

A is the amount of the company's income, the corporation tax referable to which is reduced under section 41, for the relevant accounting period which coincides with or is included in the accounting period,

B is the amount of the corporation tax, as reduced under section 41, referable to the amount mentioned in the definition of A,

E is the amount of the relevant distributions, whether made before the 6th day of April, 1989, or on or after that day, received by the company in the accounting period, which is included in its franked investment income of the accounting period, other than franked investment income against which given under section 15 (4), 25 or 26 of the Corporation Tax Act, 1976 , and which relief was not subsequently withdrawn under the provisions of those sections,

R is the amount of the income of the company charged to corporation tax for the accounting period as defined in section 28 (8) of the Corporation Tax Act, 1976 , with the addition of any amount of income of the company which would be charged to corporation tax for the accounting period but for the provisions of section 18 of the Finance Act, 1969 , section 34 of the Finance Act, 1973 , or section 71 of the Corporation Tax Act, 1976 ,

S is the amount of the corporation tax which, before any set-off of, or credit for, tax, including foreign tax, and after any relief under section 58 , 182 or 184 of the Corporation Tax Act, 1976 , or section 41 of the Finance Act, 1980 , is chargeable for the accounting period, exclusive of the corporation tax, before any credit for foreign tax, chargeable on the part of the company's profits attributable to chargeable gains for that period: and that part shall be taken to be the amount brought into the company's profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description,

T is the amount of the distributions received by the company in the accounting period which is included in its franked investment income of the accounting period, other than franked investment income against which relief is given under section 15 (4), 25 or 26 of the Corporation Tax Act, 1976 , and which relief was not subsequently withdrawn under the provisions of those sections, with the addition of any amount received by the company in the accounting period to which the provisions of section 76 (2) ( a ) (ii), section 81 (4), section 93 (3) or section 170 (3) of the Corporation Tax Act, 1976 , applies,

U is the amount of relevant distributions made by the company before the 6th day of April, 1989, which—

(i) were made for the accounting period, or

(ii) would be deemed to have been made for the accounting period by virtue of subsections (3) and (6) of section 64 of the Corporation Tax Act, 1976 , if—

(I) those subsections were treated as applying for the purposes of this definition as they apply for the purposes of the said section 64, and

W is the amount of the distributions made by the company before the 6th day of April, 1989, which—

(i) were made for the accounting period, or

(ii) would be deemed to have been made for the accounting period by virtue of subsections (3) and (6) of section 64 of the Corporation Tax Act, 1976 , if—

(I) the said subsections (3) and (6) were treated as applying for the purposes of this definition as they apply for the purposes of the said section 64, and

(II) every reference to "distributable income of the company" in the said subsection (3) were a reference to the amount determined by the formula

(R – S) + T

where R, S and T have the same meanings as otherwise in this paragraph,

and

Y is the amount of the first-mentioned distribution.

(1B) For the purposes of this section—

( a ) the amount of the distributable income of a company for an accounting period shall be the amount determined by the formula

(R – S) + T – W

where R, S, T and W have the same meanings as in subsection (1), and

(2) Where a distribution made by a company on or after the 6th day of April, 1989 (hereafter in this subsection referred to as the first-mentioned distribution) is treated for the purposes of this subsection, as the case may be, as—

(i) consisting of, or including, a specified distribution, or

(ii) consisting of two or more distributions, one or more of which is treated as consisting of, or including, a specified distribution,

the first-mentioned distribution shall, notwithstanding any other provision of the Corporation Tax Acts, be treated for the purposes of those Acts as if it consisted of two distributions, either, but not both, of which may be nil, being respectively—

( a ) a distribution which shall be a relevant distribution for the purposes of this section of an amount equal to the amount of the specified distribution mentioned in paragraph (i) or equal to the total amount of the specified distributions mentioned in paragraph (ii), as the case may be, and

( b ) a distribution which is not a relevant distribution and which consists of the balance of the first-mentioned distribution.

Attribution of distributions to accounting periods.

25.—(1) (a) Notwithstanding subsection (1A) of section 45 (as amended by this Act) of the Finance Act, 1980 , but subject to subsections (2) and (3) of this section, a company which makes a distribution on or after the 6th day of April, 1989, may, by notice in writing given to the inspector within 6 months of the end of the accounting period in which the distribution is made, specify the extent to which the distribution is to be treated, for the purposes of the said section 45, as made for any accounting period or periods.

( b ) A part of a distribution treated under the provisions of paragraph (a) as made for an accounting period shall be treated for the purposes of subsections (1), (1A) and (2) of the said section 45 as a separate distribution.

(2) A company may specify in accordance with subsection (1) that only so much of a distribution, or more than one distribution, made on any day is made—

( a ) for any accounting period, as does not exceed the undistributed income of the company for that accounting period on that day, and

( b ) for an accounting period or accounting periods ending more than 9 years before that day, as does not exceed the amount by which the amount of the distribution or the aggregate amount of the distributions, as the case may be, exceeds the aggregate of the undistributed income of the company on that day for accounting periods ending before, but not more than 9 years before, that day.

(3) Except where a distribution made by a company is—

( b ) a distribution by virtue only of subparagraph (ii), (iii) (I) or (v) of section 84 (2) ( d ) of the Corporation Tax Act, 1976 , or

( c ) a distribution made in respect of shares of a type referred to in paragraph (c)of the definition of "preference shares" in subsection (1) of section 42 (as amended by this Act) of the Finance Act, 1984 , or

( d ) made in an accounting period in which the company ceases or commences to be within the charge to corporation tax,

the company shall not be entitled to specify in accordance with subsection (1) that the distribution is to be treated as made for the accounting period in which it is made.

(4) For the purposes of this section, the amount of the undistributed income of a company for an accounting period on any day shall be the amount of the distributable income of the company for the accounting period, as determined by subsection (1B) of section 45 (as amended by this Act) of the Finance Act, 1980 , reduced by the amount of each distribution, or part thereof, made before that day and on or after the 6th day of April, 1989, which is to be treated, whether under the said section 45 or this section, as made for that accounting period.

Amendment of section 42 (treatment of dividends on certain preference shares) of Finance Act, 1984 .

26.— Section 42 of the Finance Act, 1984 , is hereby amended as respects preference shares issued on or after the 6th day of April, 1989, by the substitution for subsection (1) of the following subsection:

"(1) In this section—

'preference shares' does not include preference shares—

( a ) which are quoted on a stock exchange in the State,

( b ) which are not so quoted but which carry rights in respect of dividends and capital which are comparable with those general for fixed-dividend shares quoted on a stock exchange in the State, or

( c ) which are non-transferable shares issued, by a company in the course of carrying on relevant trading operations within the meaning of section 39A (inserted by the Finance Act, 1981 ) of the Finance Act, 1980 , or section 39B (inserted by the Finance Act, 1987 ) of that Act, to a company—

(i) none of the shares of which is beneficially owned, whether directly or indirectly, by a person resident in the State, and

(ii) which, if this paragraph had not been enacted, would not be chargeable to corporation tax in respect of any profits other than dividends which would be so chargeable by virtue of this section;

'shares' includes stock.".

Surcharges: amendment of provisions relating to.

27.—(1) Subsection (3) of section 100 of the Corporation Tax Act 1976 , is hereby amended, in paragraph (h), by the insertion after "which" of ", apart from section 41 (2) of the Finance Act, 1980 ," and the said paragraph (h), as so amended, is set out in the Table to this subsection.

TABLE

( h ) the amount of the corporation tax which, apart from section 41 (2) of the Finance Act, 1980 , would be payable by the company for the accounting period if the tax were computed on the basis of the income arrived at in accordance with the preceding provisions of this subsection.

(2) Subsection (1) of section 41 of the Finance Act, 1980 , is hereby amended by the insertion after "sections 58" of ", 101, 162" and the said subsection (1), as so amended, is set out in the Table to this subsection.

TABLE

(1) For the purposes of this section "relevant corporation tax" means the corporation tax which, apart from this section and sections 58 , 101 , 162 , 182 and 184 of the Corporation Tax Act, 1976 , would be chargeable for the relevant accounting period exclusive of the corporation tax chargeable on the part of the company's profits attributable to chargeable for that period; and that part shall be taken to be the amount brought into the company's profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description.

(3) This section shall apply and have effect as respects accounting periods ending on or after the 6th day of April, 1989.

Amendment of section 35 (relief for investment in films) of Finance Act, 1987 .

28.— Section 35 of the Finance Act, 1987 , is hereby amended—

( a ) in subsection (1), by the substitution, in the definition of "qualifying period", of "fifth" for "third",

( b ) as respects relevant investments made on or after the 9th day of July, 1989, by the substitution for subsection (3) of the following subsection—

"(3) ( a ) Subject to paragraph (b), where, in any period of twelve months ending on an anniversary of the passing of this Act, the amount, or the aggregate amount, of the relevant investments made by an allowable investor company, or by such company and all companies (which other companies are referred to hereafter in this section as 'connected companies') which, at any time in that period, would be regarded as connected with such company, exceeds £200,000, no relief shall be given under this section for the excess and, where there is more than one such relevant investment, the inspector, or, on appeal, the Appeal Commissioners, shall make such apportionment of the relief available as shall be just and reasonable to allocate to each relevant investment a due proportion of the relief available and, where necessary, to grant to each allowable investor company concerned an amount of relief proportionate to the amount of the relevant investment or the aggregate amount of the relevant investments made by it in the period.

( b ) Where in a period (hereafter in this paragraph referred to as 'the first period') of twelve months ending on an anniversary of the passing of this Act, the amount, or the aggregate amount, of the relevant investments made by an allowable investor company, and by the connected companies, in a qualifying company for the purposes of enabling the qualifying company to make one, and only one, qualifying film, exceeds £200,000 and the allowable investor company, and each of the connected companies, which has made a relevant investment as aforesaid, in making its claim for relief in respect of the relevant investment elects that the provisions of this paragraph shall apply, then—

(i) paragraph (a)shall apply for the first period in relation to the allowable investor company as if the reference therein to £200,000 were a reference to—

(I) the amount equal to £600,000, or

(II) the amount which when added to the amount, or the aggregate amount, of the relevant investments made—

(A) on or after the 9th day of July, 1989, and

(B) in the period of twenty-four months ending on the day immediately preceding the commencement of the first period,

by the allowable investor company, and the connected companies, would amount in the aggregate to £600,000,

whichever is the lesser amount, and

(ii) no relief shall be given under this section in respect of any other or further relevant investment made by the said allowable investor company, or by any of the connected companies, in

(I) the first period, and

(II) the period of twenty-four months commencing on the day next after the end of the first period.",

and

( c ) by the insertion in subsection (7), after paragraph (b), of the following paragraph:

"(bb) notwithstanding paragraph (b), where, on or after the 9th day of July, 1989, an allowable investor company has made a relevant investment (hereafter in this paragraph referred to as the 'first relevant investment') by way of a subscription for new ordinary shares of a qualifying company, and those shares are disposed of by the allowable investor company on a day which is not earlier than twelve months after the date of their acquisition by that company, and if—

(i) the consideration upon such disposal is used, and only used, by the allowable investor company within a period of twelve months commencing on that day for the purpose of making a further relevant investment by way of a subscription for new ordinary shares of a qualifying company, and

(ii) that company uses the sum invested to produce a qualifying film other than a qualifying film on the production of which the first relevant investment was expended,

then, the provisions of paragraph (b)regarding the determination, in respect of the computation of again or loss for the purpose of capital gains tax, of sums allowable as deductions from a consideration to which paragraph (b)relates, shall apply in respect of the consideration used for the purpose of making the further relevant investment, as described in this paragraph, as they apply in respect of the consideration to which paragraph (b)relates:

Provided that where an allowable investor company has made a relevant investment by way of a subscription for new ordinary shares of a qualifying company and that relevant investment is a relevant investment to which paragraph (b) of subsection (3) refers, then, if those shares are disposed of by the allowable investor company not earlier than twelve months after the date of their acquisition by that company, this paragraph shall apply—

( a ) where the relevant investment is not less than £600,000, in respect of the consideration upon such disposal, or

( b ) where the relevant investment is less than £600,000, in respect of such part of the consideration upon such disposal as bears to the total consideration on disposal the same proportion as the excess of the investment over £200,000 bears to the total amount of the investment,

without the provision that the consideration be used for the purpose of making a further relevant investment.",

and the said definition in the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

"qualifying period" means the period commencing on the date of the passing of this Act and ending on the fifth anniversary of that date;

CHAPTER IV Capital Gains Tax

Amendment of Schedule 4 (administration) to Capital Gains Tax Act, 1975 .

29.—Paragraph 11 (inserted by the Finance Act, 1982 , and which relates to the disposal of certain assets) of Schedule 4 to the Capital Gains Tax Act, 1975 , is hereby amended, as respects disposals made or after the passing of this Act, by the substitution in subparagraph (8) of "one hundred thousand pounds" for "fifty thousand pounds" and the said sub-paragraph (8) (apart from the proviso), as so amended, is set out in the Table to this section.

TABLE

(8) This paragraph shall not apply where the consideration on a disposal does not exceed the sum of one hundred thousand pounds:

Amendment of section 61 (disposal of shares on Smaller Companies Market and certain other shares) of Finance Act, 1986 .

30.— Section 61 of the Finance Act, 1986 , is hereby amended, in subsection (1), by the substitution of the following definition for the definition of "qualifying period":

"'qualifying period' means the period commencing on the 4th day of April, 1986, and ending on the 5th day of April, 1992;".

Amendment of section 70 (securities of Bord Telecom Éireann and Irish Telecommunications Investments p.l.c.) of Finance Act, 1988 .

31.—(1) Section 70 of the Finance Act, 1988 , is hereby amended by the substitution of the following paragraph for paragraph (b) of subsection (2):

"( b ) As on and from the passing of this Act, section 54 of the Finance Act, 1983 , and, in so far as it relates to Bord Telecom Éireann, paragraph (b) of section 66 of the Finance Act, 1984 , shall not apply or have effect.".

(2) Subsection (1) shall be deemed to have come into force and shall take effect as on and from the 25th day of May, 1988.

Certain futures contracts not to be chargeable assets.

32.— Section 19 of the Capital Gains Tax Act, 1975 , is hereby amended—

( a ) by renumbering the existing provision as subsection (1) of that section, and

( b ) by the addition of the following:

"(2) In addition to the provisions of subsection (1), all futures contracts which—

( a ) are unconditional contracts for the acquisition or disposal of any of the instruments referred to in subsection (1) or any other instruments to which the provisions of this section apply by virtue of any other enactment (whenever enacted), and

( b ) require delivery of the instrument in respect of which the contracts are made,

shall not be chargeable assets:

Provided that the requirement that the instrument be delivered shall be treated as satisfied where a person who has entered into a futures contract dealt in or quoted on a futures exchange or stock exchange closes out the futures contract by entering into another futures contract, so dealt in or quoted, with obligations which are reciprocal to those of the contract so closed out and thereafter settles in respect of both futures contracts by means (if any) of a single cash payment or receipt.".

Exemption for Bord Fáilte Éireann and certain other bodies.

33.—(1) As respects disposals made on or after the 6th day of April 1989, section 23 of the Capital Gains Tax Act, 1975 , shall apply to a gain accruing to a body to which this section applies as it does to a gain accruing to a body specified in that section.

(2) This section applies to the following bodies, that is to say:

( a ) Bord Fáilte Éireann,

( b ) The Dublin Regional Tourism Organisation Limited,

( c ) The Dublin and Eastern Regional Tourism Organisation Limited,

( d ) The South - Eastern Regional Tourism Organisation Limited,

( e ) Cork/Kerry Regional Tourism Organisation Limited,

( f ) The Western Regional Tourism Organisation Limited,

( g ) The Donegal, Leitrim, Sligo Regional Tourism Organisation Limited,

( h ) The Midland Regional Tourism Organisation Limited, and

( i ) Tramore Fáilte Limited.

PART II CUSTOMS AND EXCISE

Interpretation (Part II).

34.—In this Part "the Order of 1975" means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 ( S.I. No. 307 of 1975 ).

Beer.

35.—(1) Without prejudice to the rate of duty on imported beer which contains not more than 0.5 per cent. of alcohol (being pure ethyl alcohol) by volume, the duty of excise on beer imposed by paragraph 7 (1) of the Order of 1975 shall be charged, levied and paid, as on and from the 26th day of January, 1989, at the rate of £152.595 for, in the case of all beer brewed within the State, every 36 gallons of worts of a specific gravity of 1,055 degrees, and, in the case of all imported beer, every 36 gallons of beer of which the worts were before fermentation of a specific gravity of 1,055 degrees, in lieu of the rate specified in section 67 (1) of the Finance Act, 1986 .

(2) The drawback on beer provided for in paragraph 7 (3) of the Order of 1975 shall, as respects beer on which it is shown, to the satisfaction of the Revenue Commissioners, that duty at the rate specified in subsection (1) has been paid, be calculated, according to the original specific gravity of the beer, at the rate of £152.595 on every 36 gallons of beer of which the original specific gravity was 1,055 degrees.

Spirits.

36.—(1) In the Second Schedule "alcohol" means pure ethyl alcohol.

(2) The duty of excise on spirits imposed by paragraph 4 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 26th day of January, 1989, at the several rates specified in the Second Schedule in lieu of the several rates specified in the Seventh Schedule to the Finance Act, 1986 .

Wine and made wine.

37.—(1) In the Third Schedule-

"actual alcoholic strength by volume" means the number of volumes of pure alcohol contained at a temperature of 20°C in 100 volumes of the product at that temperature;

"% vol" means alcoholic strength by volume.

(2) The duties of excise on wine and made wine imposed by paragraphs 5 (2) and 6 (2), respectively, of the Order of 1975 shall be charged, levied and paid, as on and from the 26th day of January, 1989, at the several rates specified in the Third Schedule in lieu of the several rates specified in the Eighth Schedule to the Finance Act, 1986 .

Cider and perry.

38.—(1) In the Fourth Schedule-

"actual alcoholic strength by volume" means the number of volumes of pure alcohol contained at a temperature of 20°C in 100 volumes of the product at that temperature;

"% vol" means alcoholic strength by volume.

(2) The duty of excise on cider and perry imposed by paragraph 8 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 26th day of January, 1989, at the several rates specified in the Fourth Schedule in lieu of the several rates specified in the Sixth Schedule to the Finance Act, 1986 .

Tobacco products.

39.—(1) In this section and in the Fifth Schedule "cigarettes", "cigars", "sweetened pipe tobacco", "hard pressed tobacco", "other pipe tobacco", "smoking tobacco", "chewing tobacco" and "tobacco products" have the same meanings as they have in the Finance (Excise Duty on Tobacco Products) Act, 1977 , as amended by the Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979 ( S.I. No. 296 of 1979 ), and the Finance Act, 1988 .

(2) The duty of excise on tobacco products imposed by section 2 of the Finance (Excise Duty on Tobacco Products) Act, 1977 , shall, in lieu of the several rates specified in the Fourth Schedule to the Finance Act, 1988 , be charged, levied and paid, as on and from the 26th day of January, 1989, at the several rates specified in the Fifth Schedule.

Hydrocarbons.

40.—(1) The duty of excise on mineral hydrocarbon light oil imposed by paragraph 11 (1) of the Order of 1975 shall, in lieu of the rate specified in section 56 (2) of the Finance Act, 1988 , be charged, levied and paid as on and from the 26th day of January, 1989, at the rate of £30.35 per hectolitre.

(2) The rebate of duty on mineral hydrocarbon light oil provided for in section 56 (3) of the Finance Act, 1988 , shall, as respects mineral hydrocarbon light oil on which it is shown to the satisfaction of the Revenue Commissioners that duty at the rate specified in subsection (1) has been paid, be calculated at the rate of £1.68 per hectolitre.

Repayment of duty on wine, made wine cider or perry used in the production or manufacture of certain beverages.

41.—Where it is shown to the satisfaction of the Revenue Commissioners that—

( a ) wine, in respect of which the duty of excise imposed by paragraph 5 (2) of the Order of 1975 has been paid, or

( b ) made wine, in respect of which the duty of excise imposed by paragraph 6 (2) of the Order of 1975 has been paid, or

( c ) cider or perry, in respect of which the duty of excise imposed by paragraph 8 (2) of the Order of 1975 has been paid,

has been used, on or after the 1st day of July, 1989, by any person as an ingredient in the production or manufacture of a beverage containing not more than 1.2 per cent. of alcohol by volume, they may, subject to compliance with such conditions as they may think fit to impose, repay, by paying to that person, the duty of excise paid on the quantity of wine, made wine, cider or perry, as the case may be, so used by that person.

Payments in respect of bets.

42.—(1) Without prejudice to the provisions of section 24 of the Finance Act, 1926 , every bookmaker who makes, lays or otherwise enters into any bet, on or after the date of the passing of this Act, shall, at the time at which he receives payment of the amount of such bet from any person, require from such person an additional payment of an amount equal to the amount of the excise duty duly payable on the amount of that bet under subsection (1) (as amended by the Finance Act, 1985 ) of the said section 24.

(2) A bookmaker shall not accept payment of the amount of any bet unless he receives with that amount the additional payment referred to in subsection (1).

(3) A bookmaker making, laying or otherwise entering into a bet to which subsection (1) relates who—

( a ) fails or neglects to require, or purports (expressly or other wise) not to require, the payment of the additional payment concerned, or

( b ) accepts, or purports (expressly or otherwise) to accept, payment of the amount of any bet in contravention of this section,

shall be guilty of an offence under this section and shall be liable on summary conviction thereof to an excise penalty of £1,000.

Increase of duties on certain intoxicating liquor licences.

43.—The duties of excise imposed—

( a ) by section 43 of the Finance (1909-10) Act, 1910, on the licences for the manufacture or sale of intoxicating liquor specified in the First Schedule to that Act, other than the licences to be taken out annually by a distiller of spirits or a brewer of beer for sale, and

( b ) by section 10 (3) of the Finance Act, 1940 , on a licence to be taken out annually by every person who makes cider or perry for sale,

shall, as respects any such licence granted on or after the 1st day of July, 1989, in respect of periods expiring on days subsequent to the 30th day of September, 1989, be charged, levied and paid on each such licence at the rate specified in column (3) of Part I of the Sixth Schedule at the reference number at which that licence is mentioned in column (2) of that Schedule in lieu of the rate specified in Part 1 of the Table annexed to section 17 (2) of the Finance Act, 1960 (as respects an on-licence to be taken out annually by a retailer of cider), and Part I of the Seventh Schedule to the Finance Act, 1980 (as respects any other such licence); and no reduction, remission, abatement or repayment shall be allowed or made in respect of any such licence but any duty paid in error on any such licence may be repaid.

Increase of duties on public dancing licence, occasional licence, special exemption order and authorisation to a club.

44.—(1) Section 78 (2) (as amended by section 68 (1) of the Finance Act, 1982 ) of the Finance Act, 1980 , is hereby amended by the substitution for "£10" and "£75" of "£15" and "£100", respectively, and the said subsection (2), as so amended, is set out in the Table to this subsection.

TABLE

(2) There shall be charged, levied and paid on every public dancing licence granted under section 2 of the Public Dance Halls Act, 1935 , a duty of excise of—

in case the licence is for a defined period not exceeding one month	£15
in any other case	£100

(2) Section 78 of the Finance Act, 1980 , is hereby amended by the substitution in subsections (3), (4) and (5) for "£50" (inserted by paragraph 12 of the Imposition of Duties (No. 259) (Excise Duties) Order, 1982 ( S.I. No. 48 of 1982 )) of "£70 and the said subsections(3), (4) and (5), as so amended, are set out in the Table to this subsection.

TABLE

(3) There shall be charged, levied and paid on every occasional licence granted under section 11 or 13 of the Intoxicating Liquor Act, 1962 , a duty of excise of £70.

(4) There shall be charged, levied and paid on every special exemption order granted under section 5 of the Intoxicating Liquor Act, 1927 , or section 13 of the Intoxicating Liquor Act, 1962 , a duty of excise of £70.

(5) There shall be charged, levied and paid on every authorisation granted to a club under section 21 of the intoxicating Liquor (General) Act, 1924 , or section 14 of the Intoxicating Liquor Act, 1962 , a duty of excise of £70.

(3) This section shall have effect in relation to every licence, order and authorisation to which this section relates and which is granted on or after the date of the passing of this Act in respect of dates subsequent to the 30th day of September, 1989.

Excise duties on hydrocarbon vendors' licences and amendment of section 73 (power to search premises in relation to hydrocarbon oil) of Finance Act, 1986 .

45.—(1) The duty of excise imposed by paragraph 12 (12) of the Order of 1975 on a licence to be taken out annually by a person who sells or delivers hydrocarbon oil chargeable with the duty imposed by paragraph 12 (1) of the said Order shall be charged, levied and paid, as on and from the 1st day of July, 1989, at the rate of £20 in lieu of the rate specified in the said paragraph 12 (12).

(2) The duty of excise imposed by section 42 (4) (a) of the Finance Act, 1976 , on a licence to be taken out annually by a person who sells or delivers motor vehicle gas on any premises shall be charged, levied and paid, as on and from the 1st day of July, 1989, at the rate of £20 in lieu of the rate specified in the said section 42 (4) ( a ).

( 3 ) ( a ) In this subsection "hydrocarbon light oil" means hydrocarbon oil chargeable with the duty of excise imposed by paragraph 11 of the Order of 1975.

( b ) There shall be charged, levied and paid on a licence granted by the Revenue Commissioners to be taken out annually by every person who sells or delivers on any premises for use for combustion in the engine of a motor vehicle any hydrocarbon light oil a duty of excise (in this subsection referred to as the licence duty) of £20 and, where any such person so sells or delivers such oil on more than one premises, the licence duty shall be payable and the said licence shall be taken out annually by such person in respect of each of such premises separately.

( c ) No person shall, on or after the 1st day of July, 1989, sell or deliver on any premises for use for combustion in the engine of a motor vehicle any hydrocarbon light oil unless he holds a licence granted under paragraph (b) and in force in respect of such premises.

( d ) No person who deals in hydrocarbon light oil shall purchase or take delivery of any such oil for use for combustion in the engine of a motor vehicle from a person who is not the holder of a licence granted under paragraph (b) and in force.

( e ) Every holder of a licence granted under paragraph (b) shall display such licence on the premises to which such licence relates.

( f ) The Revenue Commissioners may make regulations for giving full effect to the provisions of this subsection and, in particular, for—

(i) regulating the issue, duration and renewal of and prescribing the form of licences on which the said licence duty is payable,

(ii) requiring a person who is the holder of a licence granted under paragraph (b) to keep in a specified manner specified accounts and records relating to all hydrocarbon light oil purchased, received, stored, sold or disposed of by him, to preserve for a specified period all books and documents relating to the purchase, receipt, sale and disposal by him of such oil, and to allow an officer of the Revenue Commissioners to inspect and to take copies of such accounts, records, books and documents, and

(iii) applying to the said licence duty any enactment for the time being in force relating to persons carrying on any trade which is for the time being subject to the law of excise.

( g ) A person who contravenes the provisions of this subsection or who contravenes or fails to comply with a regulation under this subsection shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £1,000 and any hydrocarbon fight oil in respect of which the offence was committed shall be liable to forfeiture.

(4) Where, in respect of any particular premises, a person is required to take out a licence under subsection (3) and a licence under paragraph 12 (12) of the Order of 1975 in respect of a period during which both of the licences are to remain in force, the Revenue Commissioners shall, notwithstanding subsections (1) and (3), on application to them by the said person in such manner and form as they may from time to time prescribe for this purpose, issue a licence to that person in respect of the said premises on payment of a duty of excise of £20 and the licence so issued shall be deemed to be licences granted, in respect of the said period, under the provisions of—

( a ) subsection (3) and

( b ) the said paragraph 12 (12),

and the said duty of excise shall be deemed to be the licence duty payable under those provisions, and those provisions shall apply accordingly.

(5) Section 73 of the Finance Act, 1986 , is hereby amended—

( a ) by the substitution in subsection (2) of that section for "the duty of excise imposed by" of "either of the duties of excise imposed by paragraph 11 or" and the said subsection, as so amended, is set out in the Table to this section, and

( b ) by the insertion after subsection (2) of that section of the following subsection:

"(2A) Where an officer of the Revenue Commissioners enters any premises under subsection (2), he may inspect any vessel, delivery pump or other container, or any vehicle found on the premises by the said officer containing any hydrocarbon oil or believed by the officer to contain hydrocarbon oil and may examine and take samples of any hydrocarbon oil contained in any such vessel, delivery pump or other container or vehicle and any person occupying or for the time being in charge of any such premises shall, when required by the said officer, give such facilities and assistance for inspecting and examining any vessel, delivery pump or other container or vehicle and for taking samples of or measuring the quantity of any hydrocarbon oil found on the said premises as the said officer may reasonably require.".

TABLE

(2) An officer of the Revenue Commissioners may, at all reasonable times, enter any premises in which any dealing in hydrocarbon oil liable to either of the duties of excise imposed by paragraph 11 or paragraph 12 of the Order of 1975 is being or is reasonably believed by the officer to be carried on or in which any books, records, accounts or other documents relating or reasonably believed by the officer to relate to any dealing in such hydrocarbon oil are kept and may there require any person to produce all books, records, accounts or other documents relating to any dealing in such hydrocarbon oil and may search for, inspect, and take copies of or extracts from any such books, records, accounts or other documents relating or believed by the officer to relate to any dealing in such hydrocarbon oil and may remove and retain the said books, records, accounts or other documents relating or believed by the officer to relate to any dealing in such hydrocarbon oil and may remove and retain the said books, records, accounts or other documents for such period as may be reasonable for their further examination.

Increase of duties on registration of firearms dealers.

46.—(1) The duty of excise on the registration of a person in a register of firearms dealers imposed by subsection (1) (as amended by section 52 (a)of the Finance Act, 1971 ) of section 41 of the Finance Act, 1925 , shall be charged, levied and paid at the rate of £50 in lieu of the rate specified in the said subsection (1).

(2) The duty of excise on the registration of a person in a register of firearms dealers imposed by subsection (3) (inserted by section 52 (c)of the Finance Act, 1971 ) of section 41 of the Finance Act, 1925 , shall be charged, levied and paid at the rate of £5 in lieu of the rate specified in the said subsection (3).

Increase of duties on certain other licences, etc.

47.—(1) The duty of excise on a firearm certificate imposed by section 18 (2) of the Finance Act, 1964 , shall, in the case of any such certificate coming into force, whether by way of grant or renewal, on or after the 1st day of August, 1989, be charged, levied and paid at the rates specified in Part II of the Sixth Schedule in lieu of the rates specified in the Third Schedule to the Finance Act, 1983 .

(2) The duty of excise imposed by section 17 of the Finance Act, 1956 , on gaming licences issued under section 19 of the Gaming and Lotteries Act, 1956 , shall be charged, levied and paid on such licences issued on or after the 1st day of June, 1989, at the rates specified in Part III of the Sixth Schedule in lieu of the rates specified in the Second Schedule to the Finance Act, 1983 .

( 3 ) ( a ) Section 74 (1) of the Finance Act, 1980 , shall, as respects the grant of gaming machine licences on or after the 1st day of June, 1989, be amended by the substitution for "£62.50", "£125", "£187.50" and "£250" (inserted by section 63 (1) of the Finance Act, 1983 ) of "£80" "£160" £240" and "£320" respectively.

( b ) Paragraph (aa) (inserted by section 74 (2) of the Finance Act, 1980 ) of subsection (7) of section 43 of the Finance Act, 1975 , shall, as respects the grant of gaming machine licences on or after the 1st day of June, 1989, be amended by the substitution for "£40", "£80", "£120" and "£160" (inserted by section 63 (2) of the Finance Act, 1983 ) of "£50","£100", "£150" and "£200", respectively.

(4) The duty of excise in respect of a licence, permit or certificate, as the case may be, mentioned in column (2) of Part IV of the Sixth Schedule at any reference number imposed by the enactment specified in column (3) of the said Part IV at that reference number shall be charged, levied and paid, as on and from the date specified in column (4) of the said Part IV at that reference number at the rate specified in column (5) of the said Part IV at that reference number in lieu of the rate specified in—

( a ) subsection (2), (3) or (5) of section 66 of the Finance Act, 1983 , as respects an auctioneer's licence, an auction permit or a house agent's licence, respectively,

( b ) subsection (1) or (2) of section 67 of the Finance Act, 1983 , as respects a bookmaker's licence or a bookmaker's premises registration certificate, respectively, and

( c ) Part IV of the Seventh Schedule to the Finance Act, 1980 , as respects any other licence concerned.

Imposition of duty on registration of clubs and cesser of club duty.

48.—(1) In this section "impressed" and "stamps" have the same meanings, respectively, as they have in the Stamp Duties Management Act, 1891, as amended by this Act.

(2) There shall be charged, levied and paid on every certificate of registration of a club granted under the Registration of Clubs (Ireland) Act, 1904, on or after the 1st day of September, 1989, a duty of excise of £100.

(3) The duty imposed by this section on a certificate of registration shall be paid and collected by means of stamps equal in value to the amount of such duty impressed on or affixed to the application in writing for registration or renewal of registration under section 2 of the Registration of Clubs (Ireland) Act, 1904, and the Stamp Duties Management Act, 1891, shall apply to such duty and stamps.

(4) Notwithstanding anything to the contrary contained in any Act, a certificate of registration of a club which is liable to the duty imposed by this section shall not be granted unless the application in writing referred to in subsection (3) for such a certificate has been duly stamped in accordance with that subsection.

(5) The duty of excise on statements of purchases of intoxicating liquor to be supplied in a club imposed by section 48 of the Finance (1909-10) Act, 1910, shall not be charged or levied, and the provisions of the said section 48 shall cease to have effect, in respect of such purchases to be supplied in a club during the calendar year 1989 or during any subsequent year.

(6) Any amount paid for the purposes of this section in relation to a certificate of registration may be repaid by the Revenue Commissioners if—

( a ) the application for the certificate is withdrawn before the determination of the court proceedings in relation to it,

( b ) the certificate is not granted, or

( c ) the amount is paid in error.

(7) The provisions of subsection (6) of section 48 of the Finance (1909-10) Act, 1910, shall cease to have effect on and from the 1st day of October, 1989.

Repeals of provisions relating to hawkers' licences.

49.—(1) Each enactment specified in column (2) of Part I of the Seventh Schedule is hereby repealed to the extent specified in column (3) of that Schedule.

(2) This section shall come into operation on the 1st day of April, 1990.

Repeal and amendment of provisions relating to refreshment house licences.

50.—(1) Each enactment specified in column (2) of Part II of the Seventh Schedule is hereby repealed to the extent specified in column (3) of that Schedule.

(2) In the Refreshment Houses (Ireland) Act, 1860—

( a ) section 6 is hereby amended by the deletion of all the words from "; and the resident, owner, tenant, or occupier" down to and including "Parliamentary census", and the said section 6, as so amended, is set out in the Table to this section,

( b ) the provisions of section 13 shall apply and have effect as if the references therein to a person licensed to keep a refreshment house were references to a person who keeps a refreshment house,

( c ) the powers of entry into refreshment houses and premises belonging thereto conferred by section 20 shall, not withstanding this section, apply and have effect in relation to refreshment houses and such premises as if the said refreshment houses were licensed refreshment houses as referred to in the said section 20 and that section shall be construed accordingly,

( d ) the provisions of section 42 shall apply and have effect as if the reference therein to any shop, house, premises or place licensed for refreshment, resort and entertainment were a reference to any shop, house, premises or place kept for refreshment, resort and entertainment.

(3) This section shall come into operation on the 1st day of April, 1990.

TABLE

6. All houses, rooms, shops, or buildings kept open for public refreshment, resort, and entertainment at any time between the hours of ten of the clock at night and seven of the clock of the following morning, not being licensed for the sale of beer, cider, wine, or spirits respectively, shall be deemed refreshment houses within this Act.

Provisions relating to private brewers.

51.—(1) In this section—

"offered for sale" includes an invitation to treat;

"private brewer" means a brewer of beer, not being a brewer for sale within the meaning of section 19 of the Inland Revenue Act, 1880.

(2) The duties of excise imposed by section 6 of the Finance Act, 1919, upon a licence to be taken out annually by a private brewer shall not be charged or levied.

(3) The duty of excise on beer imposed by paragraph 7 (1) of the Order of 1975 shall not be charged or levied on beer brewed by a private brewer, provided that the said beer is brewed by the said brewer solely for his own domestic use.

( 4 ) ( a ) Beer shall not be brewed by a private brewer otherwise than for his own domestic use and beer brewed by the said brewer shall not be sold or offered for sale by any person.

( b ) A person who contravenes the provisions of paragraph (a) shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £1,000 and any beer in respect of which the offence was committed and any vessels, utensils and materials for brewing in the possession of a private brewer of beer in respect of which the offence was committed shall be liable to forfeiture.

(5) The following enactments are hereby repealed:

( a ) sections 13 (2), 32, 33 and 34 of the Inland Revenue Act, 1880,

( b ) section 15 of the Customs and Inland Revenue Act, 1881, and

( c ) section 6 (2) of the Finance Act, 1919.

(6) This section shall come into operation on the 1st day of October, 1989.

Excise duty on driving licences.

52.—The Finance (Excise Duties) (Vehicles) Act, 1952 , is hereby amended by the substitution in section 4 (1A) (inserted by the Finance Act, 1961 ) of the following paragraphs for paragraphs (a) and (b)(inserted by the Finance Act, 1983 ):

"( a ) £4 for each year of the period of the licence, if that period is 3 years or less, and

( b ) £20 if the period of the licence is more than 3 years,".

PART III VALUE-ADDED TAX

Interpretation (Part III).

53.—In this Part—

"the Principal Act" means the Value-Added Tax Act, 1972 ;

"the Act of 1978" means the Value-Added Tax (Amendment) Act, 1978 ;

"the Act of 1985" means the Finance Act, 1985 ;

"the Act of 1988" means the Finance Act, 1988 .

Amendment of section 5 (supply of services) of Principal Act.

54.—Section 5 (inserted by the Act of 1978) of The Principal Act is hereby amended by the insertion after subsection (4A) (inserted by the Finance Act, 1982 ) of the following subsection:

"(4B) Where a person is indemnified under a policy of insurance in respect of any amount payable in respect of services of a barrister or solicitor, those services shall be deemed, for the purposes of this Act, to be supplied to, and received by, the said person.".

Amendment of section 8 (accountable persons) of Principal Act.

55.—section 8 of the Principal Act is hereby amended—

( a ) in subsection (3) (inserted by the Act of 1978) by the substitution—

(i) in paragraph (b)(inserted by the Finance Act, 1982 ) of "£15,000" for "£12,000" (inserted by the Finance Act, 1983 ),

(ii) in paragraph (c)(inserted by the Finance (No. 2) Act, 1981 ) of "£32,000" for "£25,000" (inserted by the Finance Act, 1983 ), and

(iii) in paragraph (e)(inserted by the Finance Act, 1984 ) of "£15,000" for "£12,000",

( b ) in subsection (3A) (inserted by the Finance Act, 1982 ), by the substitution of "£15,000" for "£12,000" (inserted by the Finance Act, 1983 ), and

( c ) in subsection (9) (inserted by the Act of 1978), in the definition of "farmer" (inserted by the Finance Act, 1982 ), by the substitution of "£15,000" for "£12,000" (inserted by the Finance Act, 1983 ) in each place where it occurs.

Amendment of section 11 (rates of tax) of Principal Act.

56.—section 11 of the Principal Act is hereby amended in subsection (1) (inserted by the Act of 1985)-

( a ) by the substitution of the following paragraph for paragraph (bb) (inserted by the Act of 1988):

"( bb ) 5 per cent. of the amount on which tax is chargeable in relation to the supply of electricity:

Provided that this paragraph shall not apply to the distribution of any electricity where such distribution is wholly or mainly in connection with the distribution of communications signals,",

and

( b ) by the substitution in paragraph (d)of "2 per cent." for "1.4 per cent." (inserted by the Act of 1988).

Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

57.—Section 12A (inserted by the Act of 1978) of The Principal Act is hereby amended by the substitution in subsection (1) of "2 per cent." for "1.4 per cent." (inserted by the Act of 1988).

Amendment of section 19 (tax due and payable) of Principal Act.

58.—section 19 of the Principal Act is hereby amended in subsection (3) (inserted by the Finance Act, 1983 ) by the insertion after paragraph (a)of the following paragraph:

"( aa ) (i) In this paragraph:

'accounting period' means a period, as determined by the Collector-General from time to time in any particular case, consisting of a number of consecutive taxable periods not exceeding six;

'authorised person' means a taxable person who has been authorised in writing by the Collector-General for the purposes of this paragraph and 'authorise' and 'authorisation' shall be construed accordingly.

(ii) Notwithstanding the provisions of paragraph (a) -

(I) the Collector-General may, from time to time, authorise in writing a taxable person for the purposes of this paragraph, unless the taxable person objects in writing to the authorisation,

and

(II) an authorised person may, within nine days immediately after the tenth day of the month immediately following an accounting period furnish to the Collector-General a true and correct return prepared in accordance with regulations of the amount of tax which became due by him during the taxable periods which comprise the accounting period, not being tax already paid by him in relation to goods imported by him, and, the amount, if any, which may be deducted in accordance with section 12 in computing the amount of tax payable by him in respect of such taxable periods and such other particulars as may be specified in regulations, and at the same time remit to the Collector-General any amount of tax payable by him in respect of such taxable periods, and, where the authorised person concerned so furnishes and remits, he shall be deemed to have complied with the provisions of paragraph (a)in relation to the said taxable periods.

(iii) For the purposes of issuing an authorisation to a taxable person, the Collector-General shall, where he considers it appropriate, have regard to the following matters—

(I) he has reasonable grounds to believe that—

(A) the authorisation will not result in a loss of tax, and

(B) the taxable person will meet all his obligations under the authorisation,

and

(II) the taxable person has—

(A) been a registered person during all of the period consisting of the six taxable periods immediately preceding the period in which an authorisation would, if it were issued, have effect, and

(B) complied with the provisions of paragraph (a).

(iv) An authorisation may—

(I) be issued either without conditions or subject to such conditions as the Collector-General, having regard in particular to the considerations mentioned in subparagraph (iii), considers proper and specifies in writing to the taxable person concerned when issuing the authorisation,

(II) without prejudice to the generality of the foregoing, require an authorised person to remit to the Collector-General, within nine days immediately after the tenth day of the month immediately following each taxable period (other than the final taxable period) which is comprised in an accounting period, such an amount as may be specified by the Collector-General.

(v) The Collector-General may, by notice in writing, terminate an authorisation and, where a taxable person requests him to do so, he shall terminate the authorisation.

(vi) For the purposes of terminating an authorisation the Collector-General shall, where he considers it appropriate, have regard to the following matters:

(I) he has reasonable grounds to believe that the authorisation has resulted or could result in a loss of tax, or

(II) the taxable person—

(A) has furnished, or there is furnished on his behalf, any incorrect information for the purposes of the issue to him of an authorisation, or

(B) has not complied with the provisions of paragraph (a) or of this paragraph, including the conditions, if any, specified by the Collector General under subparagraph (iv) in relation to the issue to him of an authorisation.

(vii) In relation to any taxable period in respect of which he has not complied with the provisions of paragraph (a), a person whose authorisation is terminated shall be deemed to have complied with paragraph (a)if, within twenty-one days of issue to him of a notice of termination, he furnishes to the Collector-General the return specified in paragraph (a) and at the same time remits to the said Collector-General the amount of tax payable by him in accordance with that paragraph.

(viii) (I) An authorisation shall be deemed to have been terminated by the Collector-General on the date that an authorised person—

(A) ceases to trade (except for the purposes of disposing of the stocks and assets of his business), whether for reasons of insolvency or any other reason,

(B) being a body corporate, goes into liquidation, whether voluntarily or not, or

(II) A taxable person to whom this subparagraph relates shall, in relation to any taxable period (or part of a taxable period) comprised in the accounting period which was in operation in his case on the date to which clause (I) of this subparagraph relates, be deemed to have complied with paragraph (a) if he furnishes to the Collector-General the return specified in subparagraph (ii) (II) and at the same time remits to the said Collector-General the amount of tax payable by him for the purposes of that subparagraph as if he were an authorised person whose accounting period ended on the last day of the taxable period during which the termination occurred:

Provided that the personal representative of a person who was an authorised person shall be deemed to be the taxable person concerned.".

Amendment of section 20 (refund of tax) of Principal Act.

59.—section 20 (3) (as amended by the Act of 1978) of The Principal Act is hereby amended in paragraph (a)by the substitution of "shall, in relation to the supply to such person of goods or services of a kind so specified," for "in relation to the supply to such person of goods or services of a kind so specified shall", and the said paragraph (a), as so amended, is set out in the Table to this section.

TABLE

(3) ( a ) The Minister may by order provide that a person who fulfils to the satisfaction of the Revenue Commissioners such conditions as may be specified in the order shall, in relation to the supply to such person of goods or services of a kind so specified, be entitled to be repaid so much, as is specified in the order, of any tax borne or paid by him in relation to such supply as does not qualify for deduction under section 12 in computing his liability to tax.

Amendment of section 32 (regulations) of Principal Act.

60.—section 32 of the Principal Act is hereby amended in subsection (2A) (inserted by the Act of 1978) by the substitution of ", subsection (6) or (7) of section 15 or paragraph ( ia ) of the Sixth Schedule" for "or subsection (6) or (7) of section 15".

Amendment of First Schedule to Principal Act.

61.—The First Schedule (inserted by the Act of 1978) to The Principal Act is hereby amended—

( a ) by the insertion of the following subparagraph after subparagraph (g)of paragraph (i) (inserted by the Finance Act, 1987 ):

"( gg ) the management of an undertaking which is a collective investment undertaking within the meaning of section 18 of the Finance Act, 1989 , other than services specified in subparagraph ( g );",

( b ) by the substitution of the following paragraph for paragraph (iii):

"(iii) professional services of a medical nature, other than services specified in paragraph (iiib), but excluding such services supplied in the course of carrying on a business which consists in whole or in part of selling goods;",

( c ) by the insertion after paragraph (iiia) (inserted by the Finance Act, 1986 ) of the following paragraph:

"(iiib) professional services of a dental or optical nature;",

and

( d ) by the substitution in paragraph (ix) of "subparagraph (g)or (gg) of paragraph (i)" for "paragraph (i) ( g )".

Amendment of Second Schedule to Principal Act.

62.—The Second Schedule (inserted by the Finance Act, 1976 ) to The Principal Act is hereby amended by the insertion in subparagraph (b) of paragraph (xixa) (inserted by the Value-Added Tax (Reduction of Rate) (No. 5) Order, 1981 ( S.I. No. 53 of 1981 )), after "teeth", of ", corrective spectacles and contact lenses".

Amendment of Sixth Schedule Principal Act.

63.—The Sixth Schedule (inserted by the Act of 1985) to The Principal Act is hereby amended—

( a ) by the insertion of the following paragraphs after paragraph (i):

"(ia) every work of art being—

( a ) a painting, drawing or pastel, or any combination thereof, executed entirely by hand, excluding hand-decorated manufactured articles and plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes.

( b ) an original lithograph, engraving, or print, or any combination thereof, produced directly from lithographic stones, plates or other engraved surfaces, which are executed entirely by hand,

( c ) an original sculpture or statuary, excluding mass-produced reproductions and works of craftsmanship of a commercial character, or

( d ) subject to and in accordance with regulations, an article of furniture, silver, glass or porcelain, whether hand-decorated or not, specified in the said regulations, where it is shown to the satisfaction of the Revenue Commissioners to be more than 100 years old, other than goods specified in subparagraph (a), ( b ) or (c);

(ib) literary manuscripts certified by the Director of the National Library as being of major national importance and of either cultural or artistic importance;",

and

( b ) by the insertion of the following paragraph after paragraph (ix):

"(ixa) corrective spectacles and contact lenses, including parts thereof;".

PART IV STAMP DUTIES

Levy on banks.

64.—(1) In this section—

"assessable amount" means the amount arrived at by dividing the specified amount by twelve and deducting £12,000,000 from the quotient;

"bank" means a person who, on the 1st day of September, 1988, was the holder of a licence granted under section 9 of the Central Bank Act, 1971 ;

"relevant sum", in relation to a return, means a sum shown in the return other than a sum shown in respect of foreign currency;

"returns", in relation to a bank, means the returns, entitled "MONTHLY RETURN OF ALL LICENSED BANKS: RESIDENT BRANCHES", furnished to the Central Bank of Ireland by the bank in respect of the assets and liabilities of the bank as on the 20th day of January, 1988, the 17th day of February, 1988, the 31st day of March, 1988, the 20th day of April, 1988, the 18th day of May, 1988, the 30th day of June, 1988, the 20th day of July, 1988, the 17th day of August, 1988, the 30th day of September, 1988, the 19th day of October, 1988, the 16th day of November, 1988, and the 31st day of December, 1988;

"specified amount", in relation to a bank, means the amount obtained by deducting the aggregate amount of the relevant sums shown in respect of Item 302.2 in supplement 1 of the returns of the bank from the aggregate amount of the relevant sums shown in the returns in respect of Government deposits and Non-Government deposits and shown as liabilities of the bank in such returns.

(2) A bank shall, not later than the 13th day of September, 1989, deliver to the Revenue Commissioners a statement in writing showing the assessable amount for that bank, the specified amount for that bank and the sums referred to in the definition of "specified amount" in subsection (1) by reference to which that specified amount was calculated.

(3) There shall be charged on every statement delivered pursuant to subsection (2) a stamp duty of an amount equal to the sum of the following:

( a ) 0.31 per cent. of that part of the assessable amount shown therein that does not exceed £120,000,000, and

( b ) 0.423 per cent. of that part of the assessable amount shown therein that exceeds £120,000,000:

Provided that in the case where the assessable amount shown in the statement does not exceed £120,000,000, stamp duty of an amount equal to 0.31 per cent. of the assessable amount shown therein shall be charged.

(4) The duty charged by subsection (3) upon a statement delivered by a bank pursuant to subsection (2) shall be paid by the bank upon delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by a bank such particulars as the Revenue Commissioners may deem necessary in relation to any statement required by this section to be delivered by the bank.

(6) In the case of failure by a bank to deliver any statement required by subsection (2) within the time provided for in that subsection or of failure to pay the duty chargeable on any such statement on the delivery thereof, the bank shall, from the date of the passing of this Act until the day on which the duty is paid, be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 15 per cent. per annum and also from the 13th day of September, 1989, by way of further penalty, a sum equal to 1 per cent. of the duty for each day the duty remains unpaid and each penalty shall be recoverable in the same manner as if the penalty were part of the duty.

(7) The delivery of any statement required by subsection (2) maybe enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853, in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(8) The stamp duty charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty under the care and management of the Revenue Commissioners payable by the bank.

Exemption from stamp duty of certain instrument (Custom House Docks Development Authority).

65.—No stamp duty shall be chargeable on any instrument under which any land, easement, way-leave, water right or other right whatsoever over or in respect of the land or water is acquired by the Custom House Docks Development Authority.

Exemption from stamp duty of certain instrument (Housing Finance Agency p.l.c.).

66.—(1) No stamp duty shall be chargeable on any agreement or other instrument made for the purposes of, or in connection with, securing the advancement of moneys to housing authorities by the Agency.

(2) In this section—

"the Agency" means the Housing Finance Agency p.l.c., being the body formerly known as the Housing Finance Agency;

"housing authority" means a housing authority within the meaning of the Housing Act, 1966 .

(3) This section shall have effect with respect to instruments executed on or after the 1st day of November, 1986.

Amendment of section 27 of Stamp Duties Management Act, 1891.

67.—Section 27 of the Stamp Duties Management Act, 1891, is hereby amended—

( a ) by the substitution of the following for the definition of the expression "die":

"The expression 'die' includes any plate, type, tool, implement, apparatus, appliance, device, process and any other means whatsoever, used by or under the direction of the Commissioners for expressing or denoting any duty, or rate of duty or the fact that any duty or rate of duty or penalty has been paid or that an instrument is duly stamped or is not chargeable with any duty or for denoting any fee, and also any part or combination of any such plate, type, tool, implement, apparatus, appliance, device, process and any such other means:";

( b ) by the substitution of the following for the definition of the expression "stamp":

"The expression 'stamp' means—

( a ) any stamp, image, type, mark, seal, impression, imprint or perforation, whatsoever, impressed by means of a die, or

( b ) any receipt in whatever form issued by or under the direction of the Commissioners, or

( c ) an adhesive stamp issued by or under the direction of the Commissioners,

for denoting any duty or fee:";

( c ) by the insertion of the following after the definition of the expression "stamped":

"The expression 'impressed' includes any method of applying, producing or indicating a stamp on instruments or material by means of a die:".

Amendment of section 122 of Stamp Act, 1891.

68.—Section 122 of the Stamp Act, 1891, is hereby amended—

( a ) by the substitution of the following for the definition of the expression "stamp":

"The expression 'stamp' means—

( a ) any stamp, image, type, mark, seal, impression, imprint or perforation, whatsoever, impressed by means of a die, or

( b ) any receipt in whatever form issued by or under the direction of the Commissioners, or

( c ) an adhesive stamp issued by or under the direction of the Commissioners,

for denoting any duty or fee:";

( b ) by the insertion of the following after the definition of the expression "stamped":

The expression 'impressed' includes any method of applying, producing or indicating a stamp on instruments or material by means of a die:".

Amendment of Forgery Act, 1913.

69.—The Forgery Act, 1913, is hereby amended—

( a ) in section 8 (2) ( b ), by the insertion of "(as amended by the Finance Act, 1989 )" after "Stamp Duties Management Act, 1891", and

( b ) in section 18, by the insertion of the following subsection after subsection (1):

"(1A) Notwithstanding subsection (1) of this section, the expressions 'die' and 'stamp', when used in this Act in relation to the Revenue Commissioners, have the same meanings, respectively, as are assigned to them by the Stamp Duties Management Act, 1891 (as amended by the Finance Act, 1989 ).".

Relief from transfer stamp duty in the case of reconstructions or amalgamations of certain companies.

70.—(1) ( a ) Where in the course of a bona fide reconstruction or amalgamation of companies which, except for the fact that the transferee company is not registered in the State but is duly registered in another Member State of the European Economic Community, is in accordance with the provisions of section 31 of the Finance Act, 1965 —

(i) the transferee company acquires all of the issued share capital of a particular existing company and the consideration for the acquisition consists wholly of the issue of shares in the transferee company to the holders of shares in the existing company in exchange for the shares held by them in the existing company, and

(ii) the particular existing company and the transferee company are shown to the satisfaction of the Revenue Commissioners to be wholly owned subsidiaries of the same holding company, then stamp duty under the heading "CONVEYANCE or TRANSFER on sale" in the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891, shall not be chargeable on any instrument made for the purposes of or in connection with the transfer of the shares.

( b ) In this section "holding company" and "subsidiaries" have the same meanings as they have in the Companies Act, 1963 .

(2) This section shall have effect with respect to instruments executed on or after the 20th day of December, 1988.

Amendment of section 44 (exemption from stamp duty of certain stock) of Finance Act, 1970 .

71.—(1) Section 44 of the Finance Act, 1970 , is hereby amended by the substitution of the following subsection for subsection (1).

"(1) In this section 'stock' means—

( a ) any loan stock of a company registered or established in the State or a Board established by or under an Act of the Oireachtas or the Oireachtas of Saorstát Éireann the payment of the interest on which is guaranteed by the Minister for Finance, or

( b ) any loan stock of the Electricity Supply Board, Radio Telefís Éireann, Industrial Credit Corporation p.l.c., Bord Telecom Éireann or Irish Telecommunications Investments p.l.c. to which paragraph (a)of this subsection does not apply.".

(2) This section shall have effect with respect to instruments executed on or after the 27th day of June, 1988.

Amendment of First Schedule to Stamp Act, 1891.

72.—The First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891, is hereby amended under the heading "LEASE"-

( a ) by the substitution of the following paragraph for paragraph (1):

"(1) For any indefinite term or any term not exceeding 35 years:

Of any dwelling-house, part of a dwelling-house, or apartment at a rent not exceeding £6,000 per annum ... ... ... ...

Exempt",

and

( b ) by the deletion of subparagraph (a)of paragraph (2).

PART V CAPITAL ACQUISITIONS TAX

CHAPTER I General

Interpretation (Part V).

73.—In this Part "the Principal Act" means the Capital Acquisitions Tax Act, 1976 .

CHAPTER II Arrangements with regard to Returns and Assessments

Delivery of returns.

74.—The Principal Act is hereby amended by the substitution for section 36 of the following section—

"36.(1) In this section—

( a ) notwithstanding anything contained in sections 6 and 12—

(i) a reference to a taxable gift is a reference to a taxable gift taken on or after the 28th day of February, 1974;

(ii) a reference to a taxable inheritance is a reference to a taxable inheritance taken on or after the 1st day of April, 1975; and

(iii) a reference, other than in subparagraph (i), to a gift or a taxable gift includes a reference to an inheritance or a taxable inheritance, as the case may be; and

( b ) a reference to a donee includes a reference to a successor.

(2) Any person who is primarily accountable for the payment of tax by virtue of section 35 (1), or by virtue of paragraph (c)of section 107 of the Finance Act, 1984 , shall, within four months after the relevant date referred to in subsection (5)—

( a ) deliver to the Commissioners a full and true return of—

(i) every gift in respect of which he is so primarily accountable;

(ii) all the property comprised in such gift on the valuation date;

(iii) an estimate of the market value of such property on the valuation date; and

(iv) such particulars as may be relevant to the assessment of tax in respect of such gift;

( b ) notwithstanding the provisions of section 39, make on that return an assessment of such amount of tax as, to the best of his knowledge, information and belief, ought to be charged, levied and paid on that valuation date; and

( c ) duly pay the amount of such tax.

(3) The provisions of subsection (2) ( c ) shall be complied with—

( a ) where the tax due and payable in respect of any part of the gift is being paid by instalments under the provisions of section 43, by the due payment of—

(i) an amount which includes any instalment of tax which has fallen due prior to or on the date of the assessment of the tax referred to in subsection (2) ( b ); and

(ii) any further instalments of such tax on the due dates in accordance with that section;

( b ) where the tax due and payable is inheritance tax which is being wholly or partly paid by the transfer of securities to the Minister for Finance under the provisions of section 45, by—

(i) delivering to the Commissioners with the return an application to pay all or part of the tax by such transfer;

(ii) completing the transfer of the securities to the Minister for Finance within such time, not being less than 30 days, as may be specified by the Commissioners by notice in writing; and

(iii) duly paying the excess, if any, of the amount of the tax referred to in subsection (2) ( b ), or in paragraph (a)(i), over the nominal face value of the securities tendered in payment of the tax in accordance with the provisions of subparagraph (i)—

(4) Subsection (2) applies to a charge for tax arising by reason of the provisions of section 106 of the Finance Act, 1984 , and to any other gift where—

( a ) so far as it is a taxable gift taken before the 2nd day of June, 1982—

(i) the taxable value of such gift exceeds an amount which is 80 per cent. of the lowest value upon which, at the date of such gift, tax becomes chargeable in respect of a gift taken by the donee of such gift from the disponer thereof;

(ii) the taxable value of such gift falls to be aggregated with previous gifts taken by the donee of such gift from the disponer thereof and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from such disponer from an amount which is less than or equal to the amount specified in subparagraph (i) to an amount which exceeds the amount so specified; or

(iii) the taxable value of such gift falls to be aggregated with previous gifts taken by the donee of such gift from the disponer thereof and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from such disponer from an amount which is greater than the amount specified in subparagraph (i);

and, in this paragraph—

(I) any reference to the total taxable value of all taxable gifts includes a reference to the total aggregable value of all aggregable gifts;

(II) 'aggregable gift' and 'aggregable value' have the meanings assigned to them by paragraph 1 of Part I of the Second Schedule;

( b ) so far as it is a taxable gift taken on or after the 2nd day of June, 1982, and before the 26th day of March, 1984—

(ii) the taxable value of such gift falls to be aggregated with gifts taken by the donee of such gift, either on or before the date of such gift, from any disponer and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from any disponer from an amount which is less than or equal to the amount specified in subparagraph (i) to an amount which exceeds the amount so specified; or

(iii) the taxable value of such gift falls to be aggregated with gifts taken by the donee of such gift, either on or before the date of such gift, from any disponer and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from any disponer from an amount which is greater than the amount specified in subparagraph (i);

( c ) so far as it is a taxable gift taken on or after the 26th day of March, 1984, the aggregate of the taxable values of all taxable gifts taken by the donee on or after the 2nd day of June, 1982, exceeds an amount which is 80 per cent. of the threshold amount (as defined in the Second Schedule) which applies in the computation of the tax on that aggregate; or

( d ) the donee or, in a case to which section 23 (1) applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return,

and, for the purposes of this subsection, a reference to a gift or a taxable gift includes a reference to a part of a gift or to a part of a taxable gift, as the case may be.

(5) For the purposes of this section, the relevant date shall be—

( a ) the valuation date or the 1st day of September, 1989, whichever is the later; or

( b ) where the donee or, in a case to which section 23 (1) applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return, the date of the notice.

(6) Any person who is accountable for the payment of tax by virtue of subsection (2) or (9) of section 35 shall, if he is required by notice in writing by the Commissioners to do so, comply with the provisions of paragraphs (a), ( b ) and (c)of subsection (2) of this section (as if he were a person primarily accountable for the payment of tax by virtue of section 35 (1)) within such time, not being less than 30 days, as may be specified in the notice.

( 7 ) ( a ) Any accountable person shall, if he is so required by the Commissioners by notice in writing, deliver and verify to the Commissioners within such time, not being less than 30 days, as may be specified in the notice—

(i) a statement (where appropriate, on a form provided, or approved of, by them) of such particulars relating to any property; and

(ii) such evidence as they require,

as may, in their opinion, be relevant to the assessment of tax in respect of the gift.

( b ) The Commissioners may authorise a person to inspect—

(i) any property comprised in a gift; or

(ii) any books, records, accounts or other documents, in whatever form they are stored, maintained or preserved, relating to any property as may in their opinion be relevant to the assessment of tax in respect of a gift,

and the person having the custody or possession of that property, or of those books, records, accounts or documents, shall permit the person so authorised to make that inspection at such reasonable times as the Commissioners consider necessary.

(8) The Commissioners may by notice in writing require any accountable person to—

( a ) deliver to them within such time, not being less than 30 days, as may be specified in the notice, an additional return, if it appears to the Commissioners that a return made by that accountable person is defective in a material respect by reason of anything contained in or omitted from it;

( b ) notwithstanding the provisions of section 39, make on that additional return an assessment of such amended amount of tax as, to the best of his knowledge, information and belief, ought to be charged, levied and paid on the relevant gift; and

( c ) duly pay the outstanding tax, if any, for which he is accountable in respect of that gift;

and

(i) the requirements of subparagraphs (ii), (iii) and (iv) of subsection (2) ( a ) shall apply to such additional return required by virtue of paragraph (a); and

(ii) the provisions of subsection (3) shall, with any necessary modifications, apply to any payment required by virtue of paragraph (c).

(9) Where any accountable person who has delivered a return or an additional return is aware or becomes aware at any time that the return or additional return is defective in a material respect by reason of anything contained in or omitted from it, he shall, without application from the Commissioners and within three months of so becoming aware—

( a ) deliver to them an additional return;

( c ) duly pay the outstanding tax, if any, for which he is accountable in respect of that gift;

and

(i) the requirements of subparagraphs (ii), (iii) and (iv) of subsection (2) ( a ) shall apply to such additional return required by virtue of paragraph (a); and

(ii) the provisions of subsection (3) shall, with any necessary modifications, apply to any payment required by virtue of paragraph (c).

(10) Any amount of tax payable by an accountable person in respect of an assessment of tax made by him on a return delivered by him (other than an amount of that tax payable by the transfer of securities to the Minister for Finance under the provisions of section 45) shall accompany the return and be paid to the Accountant-General of the Commissioners.

(11) Any assessment or payment of tax made under the provisions of this section shall include interest upon tax payable in accordance with the provisions of section 41.".

Application of section 39 (assessment of tax) of Principal Act.

75.—Nothing in section 36 of the Principal Act shall preclude the Commissioners from making an assessment of tax, a correcting assessment of tax, or an additional assessment of tax, under the provisions of section 39 of that Act.

Amendment of section 41 (payment of tax and interest on tax) of Principal Act.

76.—(1) section 41 of the Principal Act is hereby amended by the substitution for subsection (3) of the following subsection:

"(3) Notwithstanding the provisions of subsection (2), interest shall not be payable on tax which is paid within three months of the valuation date, and where tax and interest, if any, thereon is paid within thirty days of the date of assessment thereof, interest shall not run on that tax for the period of thirty days from the date of the assessment or any part of that period:

Provided that, in relation to an assessment of tax made by an accountable person on a return delivered by him, interest shall not be payable on tax which is paid within four months of the valuation date.".

(2) A payment by an accountable person of tax shall be treated as a payment on account of tax for the purposes of section 41 of the Principal Act, notwithstanding that the payment may be conditional or that the assessment of tax is incorrect.

Amendment of section 63 (penalties) of Principal Act.

77.—section 63 of the Principal Act is hereby amended—

( a ) by the substitution for subsection (1) of the following subsection:

"(1) ( a ) Any person who contravenes or fails to comply with any requirement or provision under section 36 shall be liable to a penalty of £2,000.

( b ) Where the contravention or failure referred to in paragraph (a)continues after judgment has been given by the court before which proceedings for the penalty have been commenced, the person concerned shall be liable to a further penalty of £25 for each day on which the contravention or failure so continues.",

( b ) by the substitution for "£500" of "£1,000" in subsection (2),

( c ) by the substitution for "£1,000" of "£5,000" in subsection (3), and

( d ) by the substitution for "£250" of "£1,000" in subsection (7).

Amendment of section 107 (application of Principal Act) of Finance Act, 1984 .

78.— Section 107 of the Finance Act, 1984 , is hereby amended—

( a ) by the deletion of paragraph (e), and

( b ) by the substitution for paragraph (g)of the following paragraph:

"( g ) sections 35 (1), 40, 45 and 57 of, and the Second Schedule to, The Principal Act shall not apply.".

Surcharge for undervaluation of property.

79.—(1) Where—

( a ) an accountable person delivers a return, and

( b ) the estimate of the market value of any asset comprised in a gift or inheritance and included in that return, when expressed as a percentage of the ascertained value of that asset, is within any of the percentages specified in column (1) of the Table to this section,

then the amount of tax attributable to the property which is that asset shall be increased by a sum (hereafter in this section referred to as the "surcharge") equal to the corresponding percentage, set out in column (2) of that Table opposite the relevant percentages in the said column (1), of that amount of tax.

(2) Interest shall be payable under the provisions of section 41 of the Principal Act upon any surcharge as if the surcharge were tax, and the surcharge and any interest thereon shall be chargeable and recoverable as if the surcharge and that interest were part of the tax.

(3) Any person aggrieved by the imposition on him of a surcharge under this section in respect of any asset may, within 30 days of the notification to him of the amount of such surcharge, appeal to the Appeal Commissioners against the imposition of such surcharge on the grounds, and only on the grounds, that, having regard to all the circumstances, there were sufficient grounds on which he might reasonably have based his estimate of the market value of the asset.

(4) The Appeal Commissioners shall hear and determine an appeal to them under subsection (3) as if it were an appeal to them against an assessment to tax, and the provisions of section 52 of the Principal Act relating to an appeal or to the rehearing of an appeal or to the statement of a case for the opinion of the High Court on a point of law shall, with any necessary modifications, apply accordingly.

(5) In this section "ascertained value" means the market value subject to the right of appeal under section 51 or section 52 of the Principal Act.

TABLE

Estimate of the market value of the asset in the return, expressed as a percentage of the ascertained value of that asset

(1)

Surcharge

(2)

Equal to or greater than 0 per cent. but less than 40 per cent.

Equal to or greater than 40 per cent. but less than 50 per cent.

Equal to or greater than 50 per cent. but less than 67 per cent.

30 per cent.

20 per cent.

10 per cent.

CHAPTER III Miscellaneous

Amendment of section 2 (interpretation) of Principal Act.

80.—(1) section 2 of the Principal Act is hereby amended—

( a ) in the definition of "child" in subsection (1), by the substitution for "the Adoption Acts, 1952 to 1974" of "the Adoption Acts, 1952 to 1988" in each place where it occurs, and

( b ) in subsection (5), by the substitution for "the Adoption Acts, 1952 to 1974" of "the Adoption Acts, 1952 to 1988" in both places where it occurs.

(2) This section shall have effect as respects gifts and inheritances taken on or after the 26th day of July, 1988.

Extension of section 35 (accountable persons) of Principal Act.

81.—(1) In the case of an inheritance taken on or before the date of death of the disponer, the disponer shall also be a person accountable for the payment of any amount of the tax for which the persons referred to in section 35 (1) of the Principal Act are made primarily accountable, and, subject to subsection (2), The Principal Act shall have effect as if such disponer were a person referred to in section 35 (2) ( b ) of that Act:

Provided that the disponer as such shall not be so accountable in the case where the date of the disposition was prior to the 1st day of May, 1989.

(2) The provisions of subsections (3) and (9) of section 35 of the Principal Act shall not apply to a disponer who is accountable for the payment of tax under subsection (1).

Amendment of section 37 (signing of returns, etc.) of Principal Act.

82.—section 37 of the Principal Act is hereby amended by the substitution for subsection (4) of the following subsection:

"(4) ( a ) A return or additional return delivered under this Act shall—

(i) be made on a form provided, or approved of, by the Commissioners, or

(ii) except in a case to which subsection (2) relates but in a case where subsection (3) applies, be in a form approved of by the Commissioners and delivered by any electronic, photographic or other process approved of by them and in circumstances where the use of such process has been agreed by them and subject to such conditions as they may impose.

( b ) An affidavit, additional affidavit, account or additional account, delivered under this Act, shall be made on a form provided, or approved of, by the Commissioners. ".

Amendment of Second Schedule to Principal Act.

83.—(1) Part I of the Second Schedule to The Principal Act is hereby amended by the substitution for paragraph 9 of the following paragraph:

"9. (1) In this paragraph—

'company' means a company which—

( a ) is a private trading company within the meaning assigned by section 16 (2); and

( b ) for the relevant period, is such a company—

(i) controlled by the disponer; and

(ii) where the disponer is a director thereof;

'company controlled by the disponer' means a company that is under the control of any one or more of the following, that is to say—

( a ) the disponer,

( b ) nominees of the disponer,

( c ) the trustees of a settlement made by the disponer;

'control', in relation to a company, shall be construed in accordance with section 16 (4) (b);

'nominee' has the same meaning as it has in section 16;

'relevant period' means—

( a ) the period of five years ending on the date of the disposition; or

( b ) where, at the date of the disposition,

(i) an interest in possession in—

(I) the property referred to in subparagraph (2) ( a ), or

(II) the shares referred to in subparagraph (2) ( b ),

as the case may be, is limited to the disponer under the disposition, and

(ii) such property is not, or such shares are not, property consisting of the appropriate part of property, within the meaning of section 5 (5), on which is charged or secured an annuity or other annual right limited to cease on the death of the disponer,

the period of five years ending on the coming to an end of that interest,

subject, in relation to work, to the exclusion of reasonable periods of annual or sick leave from that period of five years.

(2) For the purpose of computing the tax payable on a gift or inheritance, the donee or successor shall be deemed to bear to the disponer the relationship of a child in any case where the donee or successor is a child of a brother, or a child of a sister, of the disponer and either—

( a ) the donee or successor has worked substantially on a full-time basis for the disponer for the relevant period in carrying on, or in assisting in carrying on, the trade, business or profession of the disponer, and the gift or inheritance consists of property which was used in connection with that business, trade or profession; or

( b ) the donee or successor has worked substantially on a full-time basis for a company for the relevant period in carrying on, or in assisting in carrying on, the trade, business or profession of the company, and the gift or inheritance consists of shares in that company

(3) Without prejudice to the generality of subparagraph (2), a donee or successor shall not be deemed to be working substantially on a full-time basis for a disponer or a company unless—

( a ) where the gift or inheritance consists of property which was used in connection with the business, trade or profession of the disponer, the donee or successor works—

(i) more than 24 hours a week for the disponer, at a place where that business, trade or profession, is carried on; or

(ii) more than 15 hours a week for the disponer, at a place where that business, trade or profession is carried on, and such business, trade or profession is carried on exclusively by the disponer, any spouse of the disponer, and the donee or successor;

( b ) where the gift or inheritance consists of shares in the company, the donee or successor works—

(i) more than 24 hours a week for the company, at a place where the business, trade or profession of the company is carried on; or

(ii) more than 15 hours a week for the company, at a place where the business, trade or profession of the company is carried on, and such business, trade or profession is carried on exclusively by the disponer, any spouse of the disponer, and the donee or successor.

(4) The provisions of this paragraph shall not apply to a gift or inheritance taken by a donee or successor under a discretionary trust.".

(2) This section shall have effect as respects gifts and inheritances taken on or after the 1st day of May, 1989.

Amendment of section 60 (relief in respect of certain policies of insurance) of Finance Act, 1985 .

84.— Section 60 of the Finance Act, 1985 , is hereby amended by the insertion of the following subsection after subsection (1):

"(1A) In this section 'insured' means an individual or, in relation to a qualifying insurance policy where—

( a ) the insured is an individual and the spouse of that individual at the date the policy is effected;

( b ) annual premiums are paid by either or both of them during their joint lives, and by the survivor of them during the life of such survivor; and

( c ) the proceeds of the policy are payable on the death of such survivor, or on the simultaneous deaths of both such spouses,

means—

(i) where the proceeds of the policy are so payable on the death of such survivor, that survivor, and the proceeds of the policy shall be deemed to have been provided by such survivor, as disponer; or

(ii) where the proceeds of the policy are so payable on the simultaneous deaths of both such spouses, each of the spouses, and each such spouse shall be deemed to have provided the proceeds of the policy—

(I) to the extent that such proceeds are applied in paying the relevant tax of the insured who is that spouse, and

(II) where the proceeds of the policy are not applied in paying relevant tax, to the extent that the proceeds not so applied are comprised in an inheritance taken under a disposition made by that spouse.".

Exemption of specified collective investment undertakings.

85.—(1) In this section "specified collective investment undertaking" and "unit" have, respectively, the same meanings as they have in section 18.

(2) Where any unit of a specified collective investment undertaking is comprised in a gift or an inheritance, then such unit—

( a ) shall be exempt from tax, and

( b ) shall not be taken into account in computing tax on any gift or inheritance taken by the donee or successor,

if, but only if, it is shown to the satisfaction of the Commissioners that—

(i) the unit is comprised in the gift or inheritance—

(I) at the date of the gift or at the date of the inheritance; and

(II) at the valuation date;

(ii) at the date of the disposition—

(I) the disponer is neither domiciled nor ordinarily resident in the State; or

(II) the proper law of the disposition is not the law of the State;

and

(iii) at the date of the gift or at the date of the inheritance, the donee or successor is neither domiciled nor ordinarily resident in the State.

(3) This section shall have effect as respects gifts and inheritances taken on or after the date of the passing of this Act.

PART VI ANTI-AVOIDANCE

Transaction to avoid liability to tax.

86.—(1) ( a ) In this section—

"the Acts" means—

(i) the Tax Acts,

(ii) the Capital Gains Tax Acts,

(iii) the Value Added Tax Act, 1972 , and the enactments amending or extending that Act,

(iv) the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act,

(v) Part VI of the Finance Act, 1983 , and the enactments amending or extending that Part, and

(vi) the statutes relating to stamp duty,

and any instrument made thereunder;

"business" means any trade, profession or vocation;

"notice of opinion" means a notice given by the Revenue Commissioners under the provisions of subsection (6);

"tax" means any tax, duty, levy or charge which, in accordance with the provisions of the Acts, is placed under the care and management of the Revenue Commissioners and any interest, penalty or other amount payable pursuant to those provisions;

"tax advantage" means—

(i) a reduction, avoidance or deferral of any charge or assessment to tax, including any potential or prospective charge or assessment, or

(ii) a refund of or a payment of an amount of tax, or an increase in an amount of tax, refundable or otherwise payable to a person, including any potential or prospective amount so refundable or payable,

arising out of, or by reason of, a transaction, including a transaction where another transaction would not have been undertaken or arranged to achieve the results, or any part of the results, achieved or intended to be achieved by the transaction;

"tax avoidance transaction" has the meaning assigned to it by subsection (2);

"tax consequences" means, in relation to a tax avoidance transaction, such adjustments and acts as may be made and done by the Revenue Commissioners pursuant to subsection (5) in order to withdraw or deny the tax advantage resulting from the tax avoidance transaction;

"transaction" means—

(i) any transaction, action, course of action, course of conduct, scheme, plan or proposal, and

(ii) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable or intended to be enforceable by legal proceedings, and

(iii) any series of or combination of the circumstances referred to in paragraphs (i) and (ii) ,

whether entered into or arranged by one person or by two or more persons—

(I) whether acting in concert or not, or

(II) whether or not entered into or arranged wholly or partly outside the State, or

(III) whether or not entered into or arranged as part of a larger transaction or in conjunction with any other transaction or transactions.

( b ) In subsections (2) and (3), for the purposes of the hearing or rehearing under subsection (8) of an appeal made under subsection (7) or for the purposes of the determination of a question of law arising on the statement of a case for the opinion of the High Court, the references to the Revenue Commissioners shall, subject to any necessary modifications, be construed as references to the Appeal Commissioners or to a judge of the Circuit Court or, to the extent necessary, to a judge of the High Court, as appropriate.

(2) For the purposes of this section and subject to subsection (3), a transaction is a "tax avoidance transaction" if, having regard to any one or more of the following, that is to say—

( a ) the results of the transaction,

( b ) its use as a means of achieving those results, and

( c ) any other means by which the results or any part of the results could have been achieved,

the Revenue Commissioners form the opinion that—

(i) it gives rise to, or, but for this section, would give rise to, a tax advantage, and

(ii) the transaction was not undertaken or arranged primarily for purposes other than to give rise to a tax advantage,

and references in this section to the Revenue Commissioners forming an opinion that a transaction is a tax avoidance transaction shall be construed as references to them forming an opinion with regard to the transaction in accordance with the provisions of this subsection.

(3) Without prejudice to the generality of the provisions of subsection (2), in forming an opinion in accordance with that subsection and subsection (4), as to whether or not a transaction is a tax avoidance transaction, the Revenue Commissioners shall not regard the transaction as being a tax avoidance transaction if they are satisfied that—

( a ) notwithstanding that the purpose or purposes of the transaction could have been achieved by some other transaction which would have given rise to a greater amount of tax being payable by the person, the transaction—

(i) was undertaken or arranged by a person with a view, directly or indirectly, to the realisation of profits in the course of the business activities of a business carried on by the person, and

(ii) was not undertaken or arranged primarily to give rise to a tax advantage,

( b ) the transaction was undertaken or arranged for the purpose of obtaining the benefit of any relief, allowance or other abatement provided by any provision of the Acts and that transaction would not result directly or indirectly in a misuse of the provision or an abuse of the provision having regard to the purposes for which it was provided:

Provided that, in forming an opinion as aforesaid in relation to any transaction, the Revenue Commissioner shall have regard to—

(I) the form of that transaction,

(II) the substance of that transaction,

(III) the substance of any other transaction or transactions which that transaction may reasonably be regarded as being directly or indirectly related to or connected with, and

(IV) the final outcome and result of that transaction and any combination of those other transaction which are so related or connected.

(4) Subject to the provisions of this section, the Revenue Commissioners, as respect any transaction, may, at any time—

( a ) form the opinion that the transaction is a tax avoidance transaction,

( b ) calculate the tax advantage which they consider arises, or which, but for this section, would arise, from the transaction,

( c ) determine the tax consequences which they consider would arise in respect of the transaction if their opinion were to become final and conclusive in accordance with subsection (5) (e), and

( d ) calculate the amount of any relief from double taxation which they would propose to give to any person in accordance with the provisions of subsection (5) (c).

( 5 ) ( a ) Where the opinion of the Revenue Commissioner that a transaction is a tax avoidance transaction becomes final and conclusive they may, notwithstanding any other provision of the Acts, make all such adjustments and do all such acts as are just and reasonable (in so far as those adjustment and acts have been specified or described in a notice of opinion given under subsection (6) and subject to the manner in which any appeal made under subsection (7) against any matter specified or described in the notice of opinion has been finally determined, including any adjustments and acts not so specified or described in the notice of opinion but which form part of a final determination of any appeal as aforesaid) in order that the tax advantage resulting from a tax avoidance transaction shall be withdrawn from or denied to any person concerned.

( b ) Subject to, but without prejudice to the generality of paragraph (a), the Revenue Commissioners may—

(i) allow or disallow, in whole or in part, any deduction or other amount which is relevant in computing tax payable, or any part thereof,

(ii) allocate or deny to any person any deduction, loss, abatement, relief, allowance, exemption, income or other amount, or any part thereof, or

(iii) recharacterize for tax purposes the nature of any payment or other amount.

( c ) Where the Revenue Commissioners make any adjustment or do any act for the purposes of paragraph (a), they shall afford relief from any double taxation which they consider would, but for this paragraph, arise by virtue of any adjustment made or act done by them pursuant to the foregoing provisions of this subsection.

( d ) Notwithstanding any other provision of the Acts, where—

(i) pursuant to subsection (4)(c), the Revenue Commissioners determine the tax consequences which they consider would arise in respect of a transaction if their opinion, that the transaction is a tax avoidance transaction, were to become final and conclusive, and

(ii) pursuant to that determination, they specify or describe in a notice of opinion any adjustment or act which they consider would be, or be part of, the said tax consequences,

then, in so far as any right of appeal lay under subsection (7) against any such adjustment or act so specified or described, no right or further right of appeal shall lie under the Acts against that adjustment or act when it is made or done in accordance with the provisions of this subsection or against any adjustment or act so made or done that is not so specified or described in the notice of opinion but which forms part of the final determination of any appeal made under the said subsection (7) against any matter specified or described in the notice of opinion.

( e ) For the purposes of this subsection an opinion of the Revenue Commissioners that a transaction is a tax avoidance transaction shall be final and conclusive—

(i) if, within the time limited, no appeal is made under subsection (7) against any matter or matters specified or described in a notice or notices of opinion given pursuant to that opinion, or

(ii) as and when all appeals made under the said subsection (7) against any such matter or matters have been finally determined and none of the appeals has been so determined by an order directing that the opinion of the Revenue Commissioners to the effect that the transaction is a tax avoidance transaction is void.

( 6 ) ( a ) Where, pursuant to subsections (2) and (4), the Revenue Commissioners form the opinion that a transaction is a tax avoidance transaction, they shall immediately thereupon give notice in writing of the opinion to any person from whom a tax advantage would be withdrawn or to whom a tax advantage would be denied or to whom relief from double taxation would be given, if the opinion became final and conclusive, and the notice shall, specify or describe—

(i) the transaction which in the opinion of the Revenue Commissioners is a tax avoidance transaction,

(ii) the tax advantage, or part thereof, calculated by the Revenue Commissioners which would be withdrawn from or denied to the person to whom the notice is given,

(iii) the tax consequences of the transaction determined by the Revenue Commissioners, in so far as they would refer to the person, and

(iv) the amount of any relief from double taxation calculated by the Revenue Commissioners which they would propose to give to the person in accordance with subsection (5) (c).

( b ) Section 542 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply for the purposes of a notice given under this subsection, or subsection (10), as if it were a notice given under that Act.

(7) Any person aggrieved by an opinion formed or, in so far as it refers to the person, a calculation or determination made by the Revenue Commissioners pursuant to subsection (4) may, by notice in writing given to the Revenue Commissioners within 30 days of the date of the notice of opinion, appeal to the Appeal Commissioners on the grounds and, notwithstanding any other provision of the Acts, only on the grounds that, having regard to all of the circumstances, including any fact or matter which was not known to the Revenue Commissioners when they formed their opinion or made their calculation or determination, and to the provisions of this section—

( a ) the transaction specified or described in the notice of opinion is not a tax avoidance transaction, or

( b ) the amount of the tax advantage, or the part thereof, specified or described in the notice of opinion which would be withdrawn from or denied to the person is incorrect, or

( c ) the tax consequences specified or described in the notice of opinion, or such part thereof as shall be specified or described by the appellant in the notice of appeal, would not be just and reasonable in order to withdraw or to deny the tax advantage, or part thereof, specified or described in the notice of opinion, or

( d ) the amount of relief from double taxation which the Revenue Commissioners propose to give to the person is insufficient or incorrect.

(8) The Appeal Commissioners shall hear and determine an appeal made to them under subsection (7) as if it were an appeal against an assessment to income tax and, subject to subsection (9), all the provisions of the Income Tax Act, 1967 , relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications:

Provided that on the hearing or rehearing of the appeal—

( a ) it shall not be lawful to go into any grounds of appeal other than those specified in subsection (7), and

( b ) at the request of the appellants, two or more appeals made by two or more persons pursuant to the same opinion, calculation or determination formed or made by the Revenue Commissioners pursuant to subsection (4) may be heard or reheard together.

( 9 ) ( a ) On the hearing of an appeal made under subsection (7) the Appeal Commissioners shall have regard to all matters to which the Revenue Commissioners may or are required to have regard under the provisions of this section and—

(i) in relation to an appeal made on the grounds referred to in paragraph (a) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering, if they, or a majority of them—

(I) consider that the transaction specified or described in the notice of opinion, or any part of that transaction, is a tax avoidance transaction, that the opinion, or the opinion in so far as it relates to that part, is to stand good, or

(II) consider that, subject to such amendment or addition thereto as the Appeal Commissioners, or the said majority of them, deem necessary and as they shall specify or describe the transaction, or any part of it, specified or described in the notice of opinion, is a tax avoidance transaction, that the transaction, or that part of it, be so amended or added to and that, subject to the amendment or addition, the opinion, or the opinion in so far as it relates to that part, is to stand good, or

(III) do not so consider as referred to in clause (I) or (II), that the opinion is void,

(ii) in relation to an appeal made on the grounds referred to in paragraph (b) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering that the amount of the tax advantage, or the part thereof, specified or described in the notice of opinion be increased or reduced by such amount as they shall direct or that it shall stand good,

(iii) in relation to an appeal made on the grounds referred to in paragraph (c) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering that the tax consequences specified or described in the notice of opinion shall be altered or added to in such manner as they shall direct or that they shall stand good,

(iv) in relation to an appeal made on the grounds referred to in paragraph (d) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering that the amount of the relief from double taxation specified or described in the notice of opinion shall be increased or reduced by such amount as they shall direct or that it shall stand good.

(10) The Revenue Commissioners may, at any time, amend, add to or withdraw any matter specified or described in a notice of opinion by giving notice (hereafter in this subsection referred to as the "notice of amendment") in writing of the amendment, addition or withdrawal to each and every person affected thereby, in so far as the person is so affected, and the foregoing provisions of this section shall apply in all respects as if the notice of amendment were a notice of opinion and any matter specified or described in the notice of amendment were specified or described in a notice of opinion:

Provided that no such amendment, addition or withdrawal may be made so as to set aside or alter any matter which has become final and conclusive on the determination of an appeal made with regard to that matter under subsection (7).

(11) Where pursuant to subsections (2) and (4), the Revenue Commissioners form the opinion that a transaction is a tax avoidance transaction and, pursuant to that opinion, notices are to be given under subsection (6) to two or more persons, any obligation on the Revenue Commissioners to maintain secrecy or any other restriction upon the disclosure of information by the Revenue Commissioners shall not apply with respect to the giving of the notices as aforesaid or to the performance of any acts or the discharge of any functions authorised by this section to be performed or discharged by them or to the performance of any act or the discharge of any functions, including any act or function in relation to an appeal made under subsection (7), which is directly or indirectly related to the acts or functions so authorised.

(12) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions, including the forming of an opinion, authorised by this section to be performed or discharged by the Revenue Commissioners and references in this section to the Revenue Commissioners shall, with any necessary modifications, be construed as including references to an officer so nominated.

(13) This section shall apply as respects any transaction where the whole or any part of the transaction is undertaken or arranged on or after the 25th day of January, 1989, and as respects any transaction undertaken or arranged wholly before that date in so far as it gives rise to, or would, but for this section, give rise to—

( a ) a reduction, avoidance or deferral of any charge or assessment to tax, or part thereof, where the charge or assessment arises by virtue of any other transaction carried out wholly on or after a date, or

( b ) a refund or a payment of an amount, or of an increase in an amount, of tax, or part thereof, refundable or otherwise payable to a person where that amount, or increase in the amount, would otherwise become first so refundable or otherwise payable to the person on a date,

which could not fall earlier than the said 25th day of January, 1989, as the case may be.

Amendment of section 33 (connected persons) of Capital Gains Tax Act, 1975 .

87.— Section 33 of the Capital Gains Tax Act, 1975 , is hereby amended by the insertion after subsection (5) of the following subsection:

"(5A) (a) Where a person disposes of an asset to another person in such circumstances that—

(i) the proviso to subsection (5) would, but for this subsection, apply in determining the market value of the asset, and

(ii) the person is not chargeable to capital gains tax under section 4 in respect of any gain accruing on his disposal of the asset,

then, as respects any subsequent disposal of the asset by the other person, that other person's acquisition of the asset shall, for the purposes of this Act, be deemed to be for an amount equal to the market value of the asset determined as if the said proviso to subsection (5) had not been enacted.

( b ) This subsection shall—

(i) apply to disposals made on or after the 25th day of January, 1989, and

(ii) have effect for the purposes of the determination of any deduction to be made from a chargeable gain accruing on or after the 25th day of January, 1989, in respect of an allowable loss, not withstanding that the loss accrued, or, but for this section, would have accrued, on a disposal made before that day.".

Schemes to avoid liability to tax under Schedule F.

88.—(1) This section is for the purposes of counteracting any scheme or arrangement undertaken or arranged by a close company, or to which the close company is a party, being a scheme or arrangement the purpose of which, or one of the purposes of which, is to secure that any shareholder in the close company avoids or reduces a charge or assessment to income tax under Schedule F by converting into a capital receipt of the shareholder any amount which would otherwise be available for distribution by the close company to the shareholder by way of a dividend.

(2) Subject to subsection (6), this section shall apply to a disposal of shares in a close company by a shareholder if, following the disposal or the carrying out of a scheme or arrangement of which the disposal is a part, the interest of the shareholder in any trade or business (hereafter in this section referred to as the "specified business") which was carried on by the close company at the time of the disposal, whether or not the specified business continues to be carried on by the close company after the disposal, is not significantly reduced.

(3) Subject to subsection (4) and notwithstanding subsection (1) of section 84 of the Act of 1976 or any provision of the Capital Gains Tax Acts, the amount of—

( a ) the proceeds in either or both money and money's worth received by a shareholder in respect of a disposal of shares in a close company to which this section applies, or

( b ) if it is less than those proceeds, the excess of those proceeds over any consideration, being consideration which—

(i) is new consideration received by the close company for the issue of those shares, and

(ii) has not previously been taken into account for the purposes of this subsection,

shall, for all the purposes of the Tax Acts, be treated as a distribution (within the meaning of the Act of 1976) made, at the time of the disposal, by the close company to the shareholder.

( 4 ) ( a ) The amount which at any time may be treated, under subsection (3), as a distribution made by a close company to a shareholder in respect of any disposal of shares in the close company shall not exceed the amount of the capital receipt, or the aggregate of the amounts of the capital receipts, which at such time has, or have, been received by the shareholder—

(i) in respect of the disposal, or

(ii) by reason of any act done pursuant to a scheme or arrangement of which the disposal is a part:

Provided that—

(I) a capital receipt received by a shareholder at any time on or after the disposal shall in respect of such time result in so much of the amount mentioned in subsection (3) being treated as a distribution (which is made by the close company to the shareholder at the time of the disposal) as does not exceed the amount of the capital receipt, or the aggregate of the amounts of such capital receipts, which at such time on or after the disposal has or have been received by the shareholder, and

(II) if, as a result of a shareholder having received a capital receipt, a close company is treated as having made a distribution to him under subsection (3), any provision of the Income Tax Acts in respect of interest on unpaid tax shall apply, for the purposes of tax due in respect of that distribution, as if the tax were due and payable only from the day on which the shareholder received the capital receipt.

( b ) For the purposes of this subsection, "capital receipt" means, as appropriate in the circumstances, any amount of either or both money and money's worth (other than shares issued by a close company carrying on the specified business) which—

(i) is received by a shareholder in respect of a disposal of shares or by reason of any act done pursuant to a scheme or arrangement of which the disposal is a part, and

(ii) is not, apart from this section, chargeable to income tax in the hands of the shareholder.

(5) Notwithstanding the provisions of section 88 (1) of the Act of 1976, where a shareholder in a close company is treated under this section as having received a distribution from the close company, the shareholder shall only be entitled to a tax credit in respect of the distribution to the extent that the close company has paid advance corporation tax in respect of the distribution in accordance with Chapter VII of Part I of the Finance Act, 1983 :

Provided that where a close company would but for the application of the provisions of section 41 of the said Finance Act, 1983 , have paid an amount or an additional amount of advance corporation tax in respect of a distribution, then the close company shall be treated as having paid such an amount or additional amount of advance corporation tax in respect of that distribution for the purposes of this subsection.

(6) This section shall not apply as respects a disposal of shares in a close company by a shareholder where it is shown to the satisfaction of the inspector or, on the hearing, or the rehearing, of an appeal, to the satisfaction of the Appeal Commissioners, or the judge of the Circuit Court, as the case may be, that the disposal was made for bona fide commercial reasons and not as part of a scheme or arrangement the purpose, or one of the purposes, of which was the avoidance of tax.

( 7 ) ( a ) In this section—

"the Act of 1976" means the Corporation Tax Act, 1976 ;

"appeal" means an appeal made pursuant to the provisions of section 416 of the Income Tax Act, 1967 ;

"close company" has the same meaning as it has, by reason of sections 94 and 95 of the Act of 1976, for the purposes of that Act;

"market value" shall be construed in accordance with section 49 of the Capital Gains Tax Act, 1975 ;

"new consideration" has the meaning assigned to it by section 87 of the Act of 1976;

"shares" includes loan stock, debentures and any interest or rights in or over, or any option in relation to, shares, loan stock or debentures, and references to "shareholder" shall be construed accordingly.

( b ) (i) For the purposes of this section, there shall be a disposal of shares by a shareholder where the shareholder disposes of shares, or is treated under the provisions of the Capital Gains Tax Acts as disposing of shares, and references to a disposal of shares shall include references to a part disposal of shares within the meaning of those Acts.

(ii) Where under any arrangement between a close company (hereafter in this subparagraph referred to as "the first-mentioned company") and its, or some of its, shareholders (being any arrangement similar to an arrangement entered into for the purposes of or in connection with a scheme of reconstruction or amalgamation) another close company issues shares to those shareholders in respect of or in proportion to (or as nearly as may be in proportion to) their holdings of shares in the first-mentioned company, but the shares in the first-mentioned company are either retained by the shareholders or are cancelled, then those shareholders shall, for the purposes of this section, be treated as making a disposal, or a part disposal, as the case may be, of the shares in the first mentioned company in exchange for those shares held by them in consequence of such arrangement.

( c ) For the purposes of this section, the interest of a share holder in a trade or business is not significantly reduced following a disposal of shares or the carrying out of a scheme or arrangement of which the disposal is a part, if, but only if, at any time after the disposal, the percentage—

(i) of the ordinary share capital of the close company carrying on the trade or business at such time which is beneficially owned by the shareholder at such time, or

(ii) of any profits, which are available for distribution to equity holders, of the close company carrying on the trade or business at such time to which the shareholder is beneficially entitled at such time, or

(iii) of any assets, available for distribution to equity holders on a winding up, of the close company carrying on the trade or business at such time to which the shareholder would be beneficially entitled at such time on a winding up of the close company,

is not significantly less than the percentage of the said ordinary share capital, profits or assets, as the case may be, of the close company carrying on the trade or business at any time prior to the disposal—

(I) which the shareholder beneficially owned, or

(II) to which the shareholder was beneficially entitled, at such time prior to the disposal, and sections 109 to 111 and section 114 of the Act of 1976 shall apply, but without regard to section 107 (7) of the Act of 1976 in so far as it relates to those sections, with any necessary modifications, to the determination, for the purposes of this paragraph, of the percentage of share capital, or other amount, which a shareholder beneficially owns or is beneficially entitled to, as they apply to the determination for the purposes of Part XI of the Act of 1976 of the percentage of any such amount which a company so owns or is so entitled to.

( d ) The value of any amount received in money's worth shall, for the purposes of this section, be the market value of the money's worth at the time of its receipt.

(8) This section shall apply to any disposal of shares made on or after the 25th day of January, 1989.

Annual payments for non-taxable consideration.

89.—(1) Section 433 of the Income Tax Act, 1967 , is hereby amended, as respects any yearly interest of money, annuity or other annual payment paid on or after the 9th day of May, 1989, by the deletion in subsection (1) of the words "no assessment shall be made upon the person entitled to such interest, annuity, or annual payment, but" and the said subsection (1), as so amended, is set out in the Table to this subsection.

TABLE

(1) Where any yearly interest of money, annuity, or any other annual payment (whether 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 thereout, or as a personal debt or obligation by virtue of any contract, or whether payable half-yearly or at any shorter or more distant periods), is payable wholly out of profits or gains brought into charge to tax, the whole of those profits or gains shall be assessed and charged with tax on the person liable to the interest, annuity, or annual payment, without distinguishing the same, and the person liable to make such payment, whether out of the profits or gains charged with tax or out of any annual payment liable to deduction, or from which a deduction has been made, shall be entitled, on making such payment, to deduct and retain thereout a sum representing the amount of the tax thereon at the rate or rates of tax in force during the period through which the said payment was accruing due. The person to whom such payment is made shall allow such deduction upon the receipt of the residue of the same, and the person making such deduction shall be acquitted and discharged of so much money as is represented by the deduction, as if that sum had been actually paid.

( 2 ) ( a ) Any payment to which this subsection applies—

(i) shall be made without deduction of income tax,

(ii) shall not be allowed as a deduction in computing the income or total income of the person by whom it is made, and

(iii) shall not be a charge on income for the purposes of corporation tax.

( b ) This subsection applies to any payment made on or after the 9th day of May, 1989, which is—

(i) an annuity or other annual payment charged with tax under Case III of Schedule D, other than—

(I) interest,

(II) an annuity granted in the ordinary course of a business of granting annuities, or

(III) a payment made to an individual under a liability incurred in consideration of his surrendering, assigning or releasing an interest in settled property to or in favour of a person having a subsequent interest,

and

(ii) made under a liability incurred for consideration in money or money's worth, where all or any part of such consideration is not required to be brought into account in computing for the purposes of income tax or corporation tax the income of the person making the payment.

Arrangements reducing value of company shares.

90.—(1) In this section—

"arrangement" includes—

( a ) any act or omission by a person or by the trustees of a disposition;

( b ) any act or omission by any person having an interest in shares in a company;

( c ) the passing by any company of a resolution; or

( d ) any combination of acts, omissions or resolutions referred to in paragraphs (a), (b) and (c);

"company" means a private company within the meaning assigned by section 16(2) of the Principal Act

"company controlled by a donee or successor" has the same meaning as is assigned to "company controlled by the donee or the successor" by section 16 of the Principal Act

"event" includes—

( a ) a death; and

( b ) the expiration of a specified period;

"the Principal Act" means the Capital Acquisitions Tax Act, 1976 ;

"related shares" means the shares in a company, the market value of which shares is increased by any arrangement;

"related trust" has the meaning assigned to it by subsections (2) and (4);

"specified amount" means an amount equal to the difference between—

( a ) the market value of shares in a company immediately before an arrangement is made, and ascertained under the provisions of Section 16 or 17 of The Principal Act as if each share were a share in a company controlled by a donee or successor; and

( b ) the market value of those shares, or of property representing those shares, immediately after the arrangement is made, and ascertained under the provisions of section 15 of the Principal Act

and such specified amount shall be deemed to be situate where the company is incorporated.

(2) Where—

( a ) a person has an absolute interest in possession in shares in a company; and

( b ) any arrangement results in the market value of those shares, or of property representing those shares, immediately after that arrangement is made, being less than it would be but for that arrangement,

then, tax shall be payable in all respects as if a specified amount which relates to that arrangement were a benefit taken, immediately after that arrangement is made, from that person, as disponer, by—

(i) the beneficial owners of the related shares in that company; and

(ii) so far as the related shares in that company are held in trust (in this section referred to as the "related trust) and have no ascertainable beneficial owners, by the disponer in relation to that related trust as if, immediately after that arrangement is made, that disponer was the absolute beneficial owner of those related shares,

in the same proportions as the market value of the related shares, which are beneficially owned by them or are deemed to be so beneficially owned, is increased by that arrangement.

(3) Where—

( a ) an interest in property is limited by the disposition creating it to cease on an event;

( b ) immediately before the making of an arrangement to which paragraph (c) relates, the property includes shares in a company; and

( c ) the arrangement results in the market value of those shares, or of property representing those shares, immediately after that arrangement is made, being less than it would be but for that arrangement,

then, tax shall be payable under that disposition in all respects—

(i) where the interest in property is an interest in possession, as if such property included a specified amount which relates to that arrangement;

(ii) where the interest in property is not an interest in possession, as if it were an interest in possession and such property included a specified amount which relates to that arrangement; and

(iii) as if the event on which the interest was limited to cease under that disposition had happened, to the extent of the specified amount, immediately before that arrangement is made.

(4) Where—

( a ) shares in a company are, immediately before the making of an arrangement to which paragraph (b) relates, subject to a discretionary trust under or in consequence of any disposition; and

( b ) the arrangement results in those shares, or property representing those shares, remaining subject to that discretionary trust but, immediately after that arrangement is made, the market value of those shares, or of property representing those shares, is less than it would be but for that arrangement,

then, tax shall be payable under that disposition in all respects as if a specified amount, which relates to that arrangement, were a benefit taken immediately after that arrangement is made—

(i) by the beneficial owners of the related shares in that company; and

(ii) so far as the related shares in that company are held in trust (in this section referred to as the "related trust") and have no ascertainable beneficial owners, by the disponer in relation to that related trust as if, immediately after that arrangement is made, that disponer was the absolute beneficial owner of those related shares,

in the same proportions as the market value of the related shares, which are beneficially owned by them or are deemed to be so beneficially owned, is increased by that arrangement.

(5) The provisions of subsections (2), (3) and (4) shall not prejudice any charge for tax in respect of any gift or inheritance taken under any disposition on or after the making of an arrangement referred to in those subsections and comprising shares in a company, or property representing such shares.

(6) Where shares in a company, which are held in trust under a disposition made by any disponer, are related shares by reason of any arrangement referred to in this section, any gift or inheritance taken under the disposition on or after the arrangement is made and comprising those related shares, or property representing those related shares, shall be deemed to be taken from that disponer.

(7) In relation to the tax due and payable in respect of any gift or inheritance taken under the provisions of paragraph (ii) of subsection (2) or paragraph (ii) of subsection (4), and notwithstanding the provisions of the Principal act—

( a ) the disponer in relation to the related trust shall not be a person primarily accountable for the payment of such tax; and

( b ) a person who is a trustee of the related trust concerned for the time being at the date of the gift or at the date of the inheritance, or at any date subsequent thereto, shall be so primarily accountable.

(8) A person who is accountable for the payment of tax in respect of any specified amount, or part of a specified amount, taken as a gift or an inheritance under this section shall, for the purpose of paying the tax, or raising the amount of the tax when already paid, have power, whether the related shares are or are not vested in him, to raise the amount of such tax and any interest and expenses properly paid or incurred by him in respect thereof, by the sale or mortgage of, or a terminable charge on, the related shares in the relevant company.

(9) Tax due and payable in respect of a taxable gift or a taxable inheritance taken under this section shall be and remain a charge on the related shares in the relevant company.

(10) Where related shares are subject to a discretionary trust immediately after an arrangement is made in accordance with the provisions of this section, the amount by which the market value of such shares is increased by such arrangement shall be property for the purposes of a charge for tax arising by reason of the provisions of section 106 of the Finance Act, 1984 .

(11) This section shall apply only as respects a gift or an inheritance taken as a result of an arrangement which is made on or after the 25th day of January, 1989.

PART VII MISCELLANEOUS

Capital Services Redemption Account.

91.—(1) In this section—

"the principal section" means section 22 of the Finance Act, 1950 ;

"the 1988 amending section" means section 67 of the Finance Act, 1988 ;

"the thirty-ninth additional annuity" means the sum charged on the Central Fund under subsection (4);

"the Minister", "the Account" and "capital services" have the same meanings respectively as they have in the principal section.

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1989, subsection (4) of the 1988 amending section shall have effect with the substitution of "£44,924,133" for "£44,807,298".

(3) Subsection (6) of the 1988 amending section shall have effect with the substitution of "£34,009,980" for "£34,439,900".

(4) A sum of £48,206,431 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of December, 1989.

(5) The thirty-ninth additional annuity shall be paid into the account in such manner and at such times in the relevant financial year as the Minister may determine.

(6) Any amount of the thirty-ninth additional annuity, not exceeding £37,052,550 in any financial year, may be applied towards defraying the interest on the public debt.

(7) The balance of the thirty-ninth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

Tax concession for disabled drivers, etc.

92.—(1) Notwithstanding anything to the contrary contained in any enactment, the Minister for Finance may, after consultation with the Minister for Health and the Minister for the Environment, make regulations providing for—

( a ) the repayment of excise duty and value-added tax and the remission of road tax in respect of a motor vehicle used by, and

( b ) the repayment of excise duty relating to hydrocarbon oil used for combustion in the engines of vehicles, to be specified in the regulations, by,

a severely and permanently disabled person—

(i) as a driver, where the disablement is of such a nature that the person concerned could not drive any vehicle unless it is specially constructed or adapted to take account of that disablement, or

(ii) as a passenger, where the vehicle has been specially constructed or adapted to take account of the passenger's disablement, and where the vehicle is adapted, the cost of such adaptation consists of not less than 30 per cent. of the value of the vehicle excluding tax and excise duty, or such lesser percentage in respect of certain cases as may be specified by regulations in respect of the repayment of any tax relating to adaptation costs only.

(2) Regulations under this section shall provide for—

( a ) the criteria for eligibility for the remission of the taxes specified in subsection (1), including such further medical criteria in relation to disabilities as may be considered necessary,

( b ) subject to subsection (3) (b), the procedures to be used in relation to the primary medical certification of a disabled person and to appeals against such certification,

( c ) the procedures in relation to the certification of vehicles to which the regulations relate,

( d ) the amount of value-added tax and excise duty repayable in respect of a vehicle to which the regulations relate,

( e ) the maximum engine size or sizes to which the regulations relate,

( f ) the limits on the frequency of renewal of a vehicle, for the purposes of obtaining a refund of tax or excise duty, and

( g ) in the case of the driver concerned, evidence that the vehicle is for his personal use and evidence of his driving capacity,

and the regulations may provide for such other matters as the Minister for Finance considers necessary or expedient for the purposes of giving effect to this section.

( 3 ) ( a ) Upon the first coming into operation of regulations under this section, section 43 (1) of the Finance Act, 1968 , shall cease to have effect.

( b ) Any person who, at the passing of this Act, was the registered owner of a motor vehicle, being a motor vehicle in respect of which such person was entitled to and had received a refund of tax or excise duty by reference to section 43 (1) of the Finance Act, 1968 , shall be deemed to be a person who possesses a primary medical certificate which, subject to compliance with the non-medical requirements set out in the regulations, entitles him to a similar repayment of tax or excise duty by reference to this section.

(4) Regulations made under this section shall be laid before Dáil Éireann as soon as may be after they are made, and if a resolution annulling the regulations is passed by Dáil Éireann within the next subsequent 21 days on which Dáil Éireann has sat after the regulations have been so laid, the regulations shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(5) In this section—

"medical practitioner" means a medical practitioner registered under the Medical Practitioners Act, 1978 ;

"primary medical certification" means medical certification by a medical practitioner who is the holder of a post in a health board, being the post commonly known as the post of Director of Community Care and Medical Officer of Health, in the area in which the person to whom the certification relates ordinarily resides and "primary medical certificate" shall be construed accordingly.

Winding up of Savings Certificates Reserve Fund.

93.—The Minister may, by order, designate a date upon which the Savings Certificates Reserve Fund shall be wound up and upon that date—

( a ) that Fund shall cease to exist,

( b ) the balances remaining to the credit of the Principal Reserve Account and the Interest Reserve Account of that Fund shall be paid into the Capital Services Redemption Account and shall be applied towards defraying the principal and interest on the public debt, and

( c ) section 34 of the Finance Act, 1929 , and section 17 of the Finance Act, 1943 , shall cease to have effect.

Charging of expenses incurred in connection with management of prize bonds.

94.—(1) ( a ) Section 22 of the Finance (Miscellaneous Provisions) Act, 1956 , is hereby amended—

(i) in subsection (2), by the insertion of "and management" after "issue", and

(ii) by the deletion of subsection (4), and the said subsection (2), as so amended, is set out in the Table to this section.

( b ) Section 65 of the Finance Act, 1958 , is hereby amended by the deletion of subsection (1).

(2) Subsection (1) shall come into operation on the 1 st day of January, 1990.

TABLE

(2) The principal of prize bonds, the prizes in respect of them and the expenses incurred with their issue and management shall be charged on the Central Fund or the growing produce thereof.

Securities of Radios Telefís Éireann and Industrial Credit Corporation p. l. c.

95.—(1) Part XXXII of the Income Tax Act, 1967 , is hereby amended—

( a ) by the insertion after section 467A of the following section:

"467B.—(1) Any debentures, debenture stock, bonds, notes, certificates of charge or other forms of security issued after the passing of the Finance Act, 1989 , by a company to which this section applies shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 466 and that section shall apply accordingly.

(2) Notwithstanding anything contained in this Act, in computing for the purposes of assessment under Schedule the amount of the profits or gains of a company to which this section applies, for any period for which accounts are made up, there shall be allowed as a deduction the amount of the interest on debentures, debenture stock, bonds, notes, certificates of charge or other forms of security which, by direction of the Minister for Finance given under section 466 as applied by this section, is paid by the company without deduction of tax for such period.

(3) The companies to which this section applies are Radio Telefís Éireann and the Industrial Credit Corporation p. l. c.",

and

( b ) by the insertion in section 474 (1) after "467A," (inserted by the Finance Act, 1988 ) of "46713," and the said section 474 (1), as so amended, is set out in the Table to this subsection.

TABLE

(1) This section applies to any stock or other security on which interest is payable without deduction of income tax by virtue of a direction given by the Minister for Finance in pursuance of section 467, 467A, 467B, 471, 472 or 473 or section 59 of the Finance Act, 1970 or section 92 of the Finance Act, 1973 .

(2) Section 19 (d) of the Capital Gains Tax Act, 1975 , is hereby amended, as on and from the passing of this Act, by the insertion after "the Electricity Supply Board," of "Radio Telefís Éireann, the Industrial Credit Corporation p. l. c.," and the said section 19 (d), as so amended, is set out in the Table to this subsection.

TABLE

( d ) debentures, debenture stock, certificates of charge or other forms of security issued by the Electricity Supply Board, Radio Telefís Éireann, the Industrial Credit Corporation p. l. c., Bord Telecom Éireann, Irish Telecommunications Investments p. l. c., Córas Iompair Éireann, The Agricultural Credit Corporation, Limited, Bord na Móna, Aerlínte Éireann, Teoranta, Aer Lingus, Teoranta or Aer Rianta, Teoranta.

Financial arrangements relating to Bord Telecom Éireann.

96.—Payments (being payments by virtue of an agreement entered into under subsection (1) of section 100 of the Postal and Telecommunications Services Act, 1983 , and subsection (1) of section 68 of the Finance Act, 1985 ) amounting to the sum of £208,127,767, made to the Minister for Finance by Bord Telecom Éireann by way of prepayments of moneys payable under the said section 100, shall be deemed to be payments thereunder.

Post Office Savings Bank Fund.

97.—Section 17 of the Customs, Inland Revenue, and Savings Banks Act, 1877, is hereby amended by the substitution of the following paragraph for the paragraph numbered (1.):

"(1) An account in the form of a balance sheet as at the thirty first day of December, showing assets, liabilities and the accumulated reserve of the Post Office Savings Bank Fund, with notes thereto which shall include (where appropriate) particulars of interest accrued in respect of the securities standing to the credit of that Fund and of the interest paid and credited to depositors in pursuance of any enactment relating to the Post Office Savings Bank, and a note further thereto of the expenses incurred in the execution of those enactments.".

Securities of European Economic Community.

98.—(1) Subsection (1) of section 92 of the Finance Act, 1973 , is hereby amended by the insertion after "State by" of "the European Economic Community," and the said subsection, as so amended, is set out in the Table to this section.

(2) Paragraph (a) of section 66 of the Finance Act, 1984 , is hereby amended by the insertion after "the Minister for Finance, by" of "the European Economic Community," and the said paragraph, as so amended, is set out in the Table to this section.

TABLE

(1) This section applies to any stock or other form of security issued in the State by the European Economic Community, the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank.

( a ) in the State, with the approval of the Minister for Finance, by the European Economic Community, the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank as it applies to the forms of security specified in paragraph (a) of that section, and

Care and management of taxes and duties.

99.—All taxes and duties (except the excise duty on driving licences) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

Short title, construction and commencement.

100.—(1) This Act may be cited as the Finance Act, 1989 .

(2) Parts I and VII (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(3) Part II (so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties.

(4) Part III shall be construed together with the Value-Added Tax Acts, 1972 to 1988, and may be cited together therewith as the Value Added Tax Acts, 1972 to 1989.

(5) Part IV and (so far as relating to stamp duties) Part VII shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6) Part V and (so far as relating to gift tax or inheritance tax) Part VII shall be construed together with the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act.

(7) Part VI (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts and (so far as relating to value-added tax) shall be construed together with the Value Added Tax Acts, 1972 to 1989, and (so far as relating to stamp duties) shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act and (so far as relating to gift tax or inheritance tax) shall be construed together with the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act and (so far as relating to residential property tax) shall be construed together with Part VI of the Finance Act, 1983 .

(8) Part I shall, save as is otherwise expressly provided therein, be deemed to have come into force and shall take effect as on and from the 6th day of April, 1989.

(9) Part III, other than sections 54, 55, 56 (a) and 58 to 63, shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1989, paragraphs (a) and (d) of section 61 and section 63 (a) shall take effect as on and from the 1st day of July, 1989, and paragraphs (b) and (c) of section 61 and sections 62 and 63 (b) shall take effect as on and from the I st day of November, 1989.

(10) Chapter II of Part V shall come into force and shall take effect as on and from the 1st day of September, 1989.

(11) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment including this Act.

(12) 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.

(13) 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.

Section 18

FIRST SCHEDULE

ACCOUNTING FOR AND PAYMENT OF TAX DEDUCTED FROM RELEVANT PAYMENTS AND UNDISTRIBUTED RELEVANT INCOME

Time and manner of payment

1. (1) Notwithstanding any other provision of the Acts, this paragraph shall have effect for the purpose of regulating the time and manner in which tax deducted in accordance with the provisions of section 18 (5) shall be accounted for and paid.

(2) A collective investment undertaking, which is not a specified collective investment undertaking, shall, with effect from the 5th day of April, 1990, make, within 15 days from the 5th day of April each year, a return to the Collector-General of all amounts from which it was required, by reason of section 18 (5) to deduct tax in the year ending on that date and the amount of appropriate tax which it was required to deduct from those amounts.

(3) The appropriate tax required to be included in a return shall be due and payable at the time by which the return is to be made and shall be paid by the collective investment undertaking to the Collector General, and the appropriate tax so due shall be payable by the collective investment undertaking without the making of an assessment; but the appropriate tax which has become due as aforesaid may be assessed on the collective investment undertaking (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.

(4) If it appears to the inspector that there is an amount of appropriate tax which ought to have been and has not been included in a return, or the inspector is dissatisfied with any return, he may make an assessment on the collective investment undertaking to the best of his judgement; and any amount of appropriate tax due under an assessment made by virtue of this subparagraph shall be treated for the purpose of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.

(5) Where any item has been incorrectly included in a return, the inspector may make such assessments, adjustments or setoffs as may in his judgement be required for securing that the resulting liabilities to tax (including interest on unpaid tax) whether of the collective investment undertaking or any other person are, so far as possible, the same as they would have been if the item had not been so included.

( 6 ) ( a ) Any appropriate tax assessed on a collective investment undertaking under this Schedule shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under subparagraph (3)) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under the said subparagraph (3), and

( b ) on the determination of an appeal against an assessment under this Schedule any appropriate tax overpaid shall be repaid.

( 7 ) ( a ) All the provisions of the Income Tax Acts relating to—

(i) assessments to income tax,

(ii) appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and

(iii) the collection and recovery of income tax,

shall, with any necessary modifications, apply to the assessment, collection and recovery of appropriate tax.

( b ) Any amount of appropriate tax payable in accordance with this Schedule without the making of an assessment shall carry interest at the rate of 1.25 per cent. for each month or part of a month from the date when the amount becomes due and payable until payment.

( c ) The provisions of subsections (3) to (5) of section 550 of the Income Tax Act, 1967 , shall apply in relation to interest payable under clause (b) as they apply in relation to interest payable under the said section 550.

( d ) In its application to any appropriate tax charged by an assessment made in accordance with this Schedule, section 550 of the Income Tax Act, 1967 , shall have effect with the omission of the proviso to subsection (1) and subsections (2) and (2A).

( e ) Notwithstanding anything in the Income Tax Acts, the provisions of section 419 of the Income Tax Act, 1967 , and section 30 of the Finance Act, 1976 , shall not apply in relation to any appropriate tax which is charged by an assessment made in accordance with this Schedule.

(8) Every return shall be in a form prescribed by the Revenue Commissioners and shall include a declaration to the effect that the return is correct and complete.

Statement to be given on making of relevant payment

2. Where a collective investment undertaking, other than a specified collective investment undertaking, makes a relevant payment from which the appropriate tax is deductible in accordance with section 18 (5), or would be so deductible but for the provisions of paragraphs (a) and (b) of the definition of the appropriate tax contained in section 18 (1), it shall give to the unit holder to whom the relevant payment is made a statement showing—

( a ) the amount of the relevant payment,

( b ) the amount equal to the aggregate of the appropriate tax deducted from the relevant payment and any amount or amounts deducted pursuant to the provisions of the said paragraphs (a) and (b) in arriving at the appropriate tax, or, if, by reason of the said provisions, there was no appropriate tax to deduct from the amount of the relevant payment, the aggregate of the amounts referred to in the said provisions in so far as they refer to the relevant payment,

( c ) the net amount of the relevant payment,

( d ) the date of the relevant payment, and

( e ) such other information with regard to the relevant payment as shall be necessary to enable the correct amount of tax, if any, payable by or repayable to the unit holder in respect of the relevant payment to be determined.

Penalties

3. (1) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion—

( a ) in column 2 of " Finance Act, 1989 , paragraph 1 (2) of the First Schedule", and

( b ) in column 3 of " Finance Act, 1989 , section 18 (5)".

(2) Section 94 (2) of the Finance Act, 1983 , is hereby amended by the insertion after paragraph (dd) (inserted by the Finance Act, 1986 ) of the following paragraph:

"( ddd ) (i) fails to make any deduction required to be made by him under section 18 (5) of the Finance Act, 1989 , or

(ii) fails, having made the deduction, to pay the sum deducted to the Collector-General within the time specified in paragraph 1 (3) of the First Schedule to that Act.".

Section 36

SECOND SCHEDULE

RATES OF EXCISE DUTY ON SPIRITS

Description of Spirits	Rate of Duty
Spirits of any description not mentioned hereinafter and imported mixtures and preparations containing spirits	£20.085 per litre of alcohol in the spirits
Imported perfumed spirits entered in such manner as to indicate that the strength is not to be tested	£18.277 per litre
Imported liqueurs, cordials, mixtures and other preparations in bottle entered in such manner as to indicate that the strength is not to be tested	£15.464 per litre

Section 37

THIRD SCHEDULE

RATES OF EXCISE DUTY ON WINE AND MADE WINE

Description of Wine and Made Wine	Rate of Duty
Still:
Of an actual alcoholic strength by volume not exceeding 15% vol.	£2.04 per litre
Of an actual alcoholic strength by volume exceeding 15% vol.	£2.96 per litre
Sparkling	£4.08 per litre
Wine and Made Wine whether still or sparkling of an actual alcoholic strength by volume exceeding 22% vol.
An additional duty for every 1 % vol. or fraction of 1 % vol. above 22% vol.	£0.23 per litre

Section 38

FOURTH SCHEDULE

RATES OF EXCISE DUTY ON CIDER AND PERRY

Description of Cider and Perry	Rate of Duty
Of an actual alcoholic strength by volume not exceeding 6% vol.	£0.93 the gallon
Of an actual alcoholic strength by volume exceeding 6% vol. but not exceeding 8.7% vol.	£4.03 the gallon
Of an actual alcoholic strength by volume exceeding 8.7% vol.	£9.27 the gallon

Section 39

FIFTH SCHEDULE

RATES OF EXCISE DUTY ON TOBACCO PRODUCTS

Description of Product	Rate of Duty
Cigarettes	£40.70 per thousand together with an amount equal to 13.56 per cent. of the price at which the cigarettes are sold by retail
Cigars	£60.217 per kilogram
Sweetened pipe tobacco	£60.851 per kilogram
Hard pressed tobacco	£38.914 per kilogram
Other pipe tobacco	£48.916 per kilogram
Other smoking or chewing tobacco	£50.814 per kilogram

Section 43

SIXTH SCHEDULE

RATES OF EXCISE DUTY ON CERTAIN LICENCES

PART I

Intoxicating Liquor Licences

(1)	(2)	(3)
Reference Number	Description of Licence	Rate of Duty
	MANUFACTURERS' LICENCES
	Licence to be taken out annually by:
1.	Rectifier or compounder of spirits	£100
2.	Maker for sale of sweets	£100
3.	Maker of cider or perry for sale	£100
	WHOLESALE DEALERS' LICENCES
	Licence to be taken out annually by:
4.	Wholesale dealer in spirits	£100
5.	Wholesale dealer in beer	£100
6.	Wholesale dealer in wine	£100
7.	Wholesale dealer in spirits of wine	£100
	RETAILERS' ON-LICENCES
	Licence to be taken out annually by:
8.	Retailer of spirits	£100
9.	Retailer of beer	£100
10.	Retailer of wine	£100
11.	Retailer of sweets	£100
12.	Retailer of cider	£100
	RETAILERS' OFF-LICENCES
	Licence to be taken out annually by:
13.	Retailer of spirits	£100
14.	Retailer of beer	£100
	Retailer of cider	£50
16.	Retailer of wine	£100
17.	Retailer of sweets	£100
	PASSENGER VESSEL LICENCES
18.	Licence to be taken out annually in respect of a passenger vessel by the master or other person belonging to the vessel nominated by the owner of the vessel.	£100
19.	Licence to be taken out in respect of a passenger vessel by the master or other person belonging to the vessel nominated by the owner of the vessel, and to be in force for one day only.	£20
	RAILWAY RESTAURANT CAR LICENCES
20.	Licence to be taken out annually in respect of a railway restaurant car by the railway company or other person owning the car.	£100
	PASSENGER AIRCRAFT LICENCES
21.	Licence to be taken out annually by an air transport concern in respect of an aircraft in flight owned or hired by that concern.	£100

PART II

Firearm Certificates

Description of Certificate	Rate of Duty
For a firearm certificate for a pistol, including an air pistol, or revolver	£25
For a firearm certificate for a rifle, including a miniature rifle	£25
For a firearm certificate for an airgun, including an air rifle	£25
For a firearm certificate for a prohibited weapon	£3
For a firearm certificate for a shot-gun to which the provisions of section 12 of the Firearms Act, 1964 , apply	£4
For any other firearm certificate-
For one such certificate	£17
Where two or more such certificates are granted to the same person (not necessarily at the same time) and expire on the same date-
For the first such certificate	£17
For the second and every subsequent such certificate	£4

PART III

Gaming Licences

Description of Licence	Rate of Duty
Where the period for which the licence is to be issued as specified in the certificate under the Gaming and Lotteries Act, 1956 , authorising the issue of the licence-
( a ) does not exceed three months	£100
( b ) exceeds three months but does not exceed six months	£200
( c ) exceeds six months but does not exceed nine months	£300
( d ) exceeds nine months	£400

PART IV

Other Licences

(1)	(2)	(3)	(4)	(5)
Reference Number	Description of licence	Enactment imposing the duty	Operative date	Rate of Duty
1.	Auctioneer's licence	Section 11 of Finance Act, 1947	6th day of July, 1989	£160
2.	Auction permit	Section 12 of Finance Act, 1947	6th day of July, 1989	£160
3.	House agent's licence	Section 13 of Finance Act, 1947	6th day of July, 1989	£80
4.	Bookmaker's licence	Section 17 of Finance Act, 1931	1st day of December, 1989	£160
5.	Bookmaker's premises registration certificate	Section 18 of Finance Act, 1931	1st day of December, 1989	£160
6.	Hydrocarbon oil refiner's licence	Section 1 (4) of Finance(Miscellaneous Provisions) Act, 1935	1st day of February, 1990	£100
7.	Match manufacturer's licence	Section 3 (2) of Finance (New Duties) Act, 1916	1st day of April, 1990	£100
8.	Methylated spirits maker's licence	Section 27 of Revenue Act, 1889	1st day of October, 1989	£100
9.	Methylated spirits retailer's licence	Section 27 of Revenue Act, 1889	1st day of October, 1989	£5
10.	Moneylender's licence	Section 18 (1) of Finance Act, 1933	1st day of August, 1989	£200
11.	Pawnbroker's licence	Section 18 of Finance Act, 1965	1st day of August, 1989	£200
12.	Table waters manufacturer's licence	Section 9 of Finance Act, 1916	1st day of May, 1990	£100
13.	Tobacco products manufacturer's licence	Section 10 (1) of Finance (Excise Duty on Tobacco Products) Act, 1977	1st day of January, 1990	£100

Section 49 (1).

SEVENTH SCHEDULE

PART I

Repeal of Provisions relating to Hawkers' Licences

Session and Chapter or Number and Year	Short Title	Extent of Repeal
(1)	(2)	(3)
51 & 52 Vict., c. 33.	Hawkers Act, 1888.	The whole Act.
No. 20 of 1930.	Finance Act, 1930 .	Section 12.
No. 31 of 1931.	Finance Act, 1931 .	Section 24.
No. 25 of 1938.	Finance Act, 1938 .	Section 21.
No. 25 of 1958.	Finance Act, 1958 .	Section 19.
No. 19 of 1960.	Finance Act, 1960 .	Section 16 (4).

Section 50 (1).

PART II

Repeal of Provisions relating to Refreshment House Licences

Session and Chapter or Number and Year	Short Title	Extent of Repeal
(1)	(2)	(3)
23 & 24 Vict., c. 107.	Refreshment Houses(Ireland) Act, 1860.	Sections 1, 2 and 9. Section 10 and Form No. 1 contained in the Schedule. Sections 11, 12, 18 and 34.
24 & 25 Vict., c. 91.	Revenue (No. 2) Act, 1861.	Section 9.
25 & 26 Vict., c. 22.	Revenue Act, 1862.	Section 15.
27 & 28 Vict., c.18.	Revenue (No. 1) Act, 1864.	Section 5.
No. 15 of 1946.	Finance Act, 1946 .	Section 21.
No. 14 of 1980.	Finance Act, 1980 .	Section 77 (5).
No. 16 of 1981	Finance Act, 1981 .	Section 38.

* O.J. No. L 357 of 31.12.1985.

Irish Legislation

Finance Act, 1989