Finance Act, 1991

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
Companies Act, 1990	1990, No. 33
Companies Acts, 1963 to 1990
Companies (Amendment) Act, 1983	1983, No. 13
Corporation Tax Act, 1976	1976, No. 7
Courts of Justice Act, 1936	1936, No. 48
Courts (No, 2) Act, 1986	1986, No. 26
Excise Management Act, 1827	7 & 8 Geo. 4, c. 53
Finance Act, 1894	57 & 58 Vict., c. 30
Finance (1909-10) Act, 1910	10 Edw. 7, c. 8
Finance Act, 1926	1926, No. 35
Finance Act, 1935	1935, No. 28
Finance Act, 1940	1940, No. 14
Finance Act, 1949	1949, No. 13
Finance Act, 1950	1950, No. 18
Finance Act, 1960	1960, No. 19
Finance Act, 1968	1968, No. 33
Finance Act, 1970	1970, No. 14
Finance Act, 1972	1972, No. 19
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, 1979	1979, No. 11
Finance Act, 1980	1980, No. 14
Finance Act, 1981	1981, No. 16
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 Act, 1989	1989, No. 10
Finance Act, 1990	1990, No. 10
Finance (Excise Duties) (Vehicles) Act, 1952	1952, No. 24
Finance (Excise Duty on Tobacco Products) Act, 1977	1977, No. 32
Health Act, 1970	1970, No. 1
Income Tax Act, 1967	1967, No. 6
Inland Revenue Regulation Act, 1890	53 & 54 Vict., c. 21
Insurance Act, 1936	1936, No. 45
Insurance Act, 1964	1964, No. 18
Insurance Act, 1989	1989, No. 3
Insurance Act, 1990	1990, No. 26
Petroleum and Other Minerals Development Act, 1960	1960, No. 7
Petty Sessions (Ireland) Act, 1851	14 & 15 Vict., c. 93
Postal and Telecommunications Services Act, 1983	1983, No. 24
Stamp Act, 1891	54 & 55 Vict., c. 39
Stamp Duties Management Act, 1891	54 & 55 Vict., c. 38
Stock Transfer Act, 1963	1963, No. 34
Succession Duty Act, 1853	16 & 17 Vict., c. 51
Tourist Traffic Acts, 1939 to 1987
Unit Trusts Act, 1990	1990, No. 37
Value-Added Tax Act, 1972	1972, No. 22
Value-Added Tax (Amendment) Act, 1978	1978, No. 34
Value-Added Tax Acts, 1972 to 1990

Number 13 of 1991

FINANCE ACT, 1991

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.

[29th May, 1991]

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 1991-92 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended—

( a ) in section 1—

(i) by the substitution, in paragraph (b) of subsection (1), of "52 per cent." for "53 per cent." (inserted by the Finance Act, 1990 ),

(ii) by the substitution, in subsection (2) (inserted by the Finance Act, 1989 ), of "£6,800" for "£6,500" (inserted by the Finance Act, 1990 ), and "£3,400" for "£3,250" (inserted by the Finance Act, 1990 ), and

(iii) by the substitution of the following paragraph for paragraph (a)of subsection (3) (inserted by the Finance Act, 1989 ):

"( a ) For the purposes of this section and section 2, where a claimant proves that he has living, at any time during the 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 £300 in respect of the first such child, £300 in respect of the second such child and £500 in respect of each such child in excess of two.",

and

( b ) in section 2—

(i) by the substitution, in subsection (3), of "52 per cent." for "53 per cent." (inserted by the Finance Act, 1990 ), and

(ii) by the substitution, in subsection (6) (inserted by the Finance Act, 1989 )-

(I) of "£7,800" and "£9,000", respectively, for "£7,500" and "£8,700" (inserted by the Finance Act, 1990 ), in paragraph (a), and

(II) of "£3,900" and "£4,500", respectively, for "£3,750" and "£4,350" (inserted by the Finance Act, 1990 ), in paragraph (b),

and the said paragraph (b) of subsection (1), and the said subsection (2), of the said section 1 and the said subsections (3) and (6) of the said section 2, as so amended, are set out in the Table to this section.

TABLE

( b ) an individual makes a claim for the purpose, makes a return in the prescribed form of his total income for that year and proves that it does not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 52 per cent. of the amount by which his total income exceeds the specified amount, reduced to that sum.

(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 , £6,800, and

( b ) in any other case, £3,400.

(3) Where an individual to whom this section applies proves that his total income for a year of assessment for which this section applies does not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 52 per cent. of the amount by which his total income exceeds the specified amount, reduced to that sum.

(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 , £7,800:

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 £9,000, and

( b ) in any other case, £3,900:

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 £4,500.

Charge of income tax for 1991-92 and subsequent years.

2.—(1) Income tax shall be charged for the year 1991-92 and for each subsequent year of assessment and shall, subject to subsection (2), be so charged at the rate of tax specified in the Table to this section as the standard rate.

(2) Where a person who is charged to income tax for the year 1991-92 or any subsequent year of assessment is an individual (other than an individual acting in a fiduciary or representative capacity), he shall, notwithstanding anything in the Income Tax Acts but subject to section 5 (3) of the Finance Act, 1974 , be charged to tax on his taxable income—

( a ) in a case in which he is assessed to tax otherwise than in accordance with the provisions of section 194 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , at the rates specified in Part I of the Table to this section, or

( b ) in a case in which he is assessed to tax in accordance with the provisions of the said section 194, at the rates specified in Part II of the said Table,

and the rates in each Part of that Table shall be known, respectively, by the description specified in column (3), in each such Part opposite the mention of the rate or rates, as the case may be, in column (2) of that Part.

(3) Paragraph 1 of Part I of the First Schedule shall have effect for the purpose of supplementing subsection (2) and paragraph 2 of the said Part I shall have effect for the purpose of supplementing section 3 of the Finance Act, 1974 .

TABLE

PART I

Part of taxable income	Rate of tax		Description of rate
(1)	(2)		(3)
The first £6,700	29 per cent.		the standard rate
The next £3, 100	48 per cent.	}	the higher rates
The remainder	52 per cent.

PART II

Part of taxable income	Rate of tax
(1)	(2)		(3)
The first £13,400	29 per cent.		the standard rate
The next £6,200	48 per cent.	}	the higher rates
The remainder	52 per cent.

Personal reliefs.

3.—(1) Where a deduction falls to be made from the total income of an individual for the year 1991-92 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).

TABLE

Statutory provision	Amount to be deducted from total income for the year 1990-91	Amount to be deducted from total income for the year 1991-92 and subsequent years
			(widowed person bereaved in the year of assessment)	4,100	4,200
			(widowed person)	2,550	2,600
			(single person)	2,050	2,100
Section 138A
(additional allowance for widows and others in respect of children)
(widowed person)	1,550	1,600
(others)	2,050	2,100

(2) Section 3 of the Finance Act, 1988 , shall have effect subject to the provisions of this section.

(3) Part II of the First Schedule shall have effect for the purpose of supplementing subsection (1).

Special allowance for widowed parent following death of spouse.

4.—(1) ( a ) This section applies to an individual whose spouse dies in a year of assessment, being the year 1988-89 or any subsequent year of assessment (hereafter in this section referred to as "a claimant").

( b ) For the purposes of this section "a qualifying child", in relation to a claimant and a year of assessment, has the meaning assigned to it by subsection (1) ( b ) of section 138A (inserted by the Finance Act, 1985 ) of the Income Tax Act, 1967 , and the question of whether a child is a qualifying child shall be determined on the same basis as it would be for the purposes of the said section 138A, and the provisions of subsections (3), (4), (6) and (7) of that section shall apply accordingly.

(2) Subject to the provisions of this section, where a claimant proves, in relation to any of the three years of assessment next immediately following the year of assessment in which his spouse dies, that—

( a ) he has not remarried before the commencement of the year, and

( b ) a qualifying child is resident with him for the whole or part of the year,

he shall, in respect of each of the years in relation to which he so proves, be entitled, in computing the amount of his taxable income, to have a deduction made from his total income as follows—

(i) for the first of the said three years, £1,500,

(ii) for the second of the said three years, £1,000, and

(iii) for the third of the said three years, £500:

Provided that this section shall not apply for any year of assessment in the case of a man and woman who are living together as man and wife.

(3) 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 apply in relation to a deduction under this section.

(4) This section shall apply and have effect as respects the year 1991-92 and subsequent years of assessment.

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

5.— Section 8 of the Finance Act, 1989 , shall have effect, as respects the year 1991-92 and subsequent years of assessment, as if "25 per cent." were substituted for "80 per cent.".

Amendment of section 110 (persons chargeable and extent of charge) of Income Tax Act, 1967 .

6.— Section 110 (inserted by the Finance Act, 1990 ) of the Income Tax Act, 1967 , is hereby amended—

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

( b ) by the addition of the following subsections:

"(2) Where (apart from this subsection) emoluments from an office or employment would be for a year of assessment in which a person does not hold the office or employment, the following provisions shall apply for the purposes of subsection (1):

( a ) if in the year concerned the office or employment has never been held, the emoluments shall be treated as emoluments for the first year of assessment in which the office or employment is held, and

( b ) if in the year concerned the office or employment is no longer held, the emoluments shall be treated as emoluments for the last year of assessment in which the office or employment was held.

(3) In this section 'emoluments' means anything assessable to income tax under Schedule E.".

Amendment of section 138B (employee allowance) of Income Tax Act, 1967 .

7.—As respects the year 1991-92 and subsequent years of assessment, section 138B (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , is hereby amended by the addition after subsection (2) of the following subsection:

"(3) Where an individual is in receipt of profits or gains from an office or employment held or exercised outside the State, such profits or gains shall be deemed to be emoluments within the meaning of subsection (2) if such profits or gains—

( a ) are chargeable to tax in the country in which they arise, and

( b ) are, on payment by the person making such payment, subject to a system of tax deduction which is similar in form to that provided for in Chapter IV of Part V, and

( c ) are chargeable to tax in the State on the full amount thereof under Schedule D, and

( d ) would, if the said office or employment was held or exercised within the State and the said person was resident in the State, be emoluments within the meaning of subsection (2).".

Amendment of section 142A (allowance for rent paid by certain tenants) of Income Tax Act, 1967 .

8.—As respects the year 1991-92 and subsequent years of assessment, section 142A (inserted by the Finance Act, 1982 ) of the Income Tax Act, 1967 , is hereby amended by the substitution, in subsection (2), of the following paragraph for paragraph (b):

"( b ) In this subsection 'the relevant limit' means—

(i) in the case of a claimant who is entitled to a deduction under section 138 ( a ), £2,000,

(ii) in the case of a widowed person, £1,500, and

(iii) in any other case, £1,000.".

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

9.— 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 1991-92, as if in subsection (2)—

( a ) "1991-92" were substituted for "1982-83" and

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

Application of section 10 (exemption of certain income from leasing of farm land) of Finance Act, 1985 .

10.—(1) In this section, "qualifying lease", "qualifying lessor" and "the specified amount have the meanings respectively assigned to them by section 10 (1) of the Finance Act, 1985 .

(2) As respects a qualifying lease or qualifying leases made on or after the 30th day of January, 1991, the said section 10 (1) shall have effect as if references therein to £2,000 were references to—

( a ) where the qualifying lease or qualifying leases is or are for a definite term of seven years or more, £4,000, and

( b ) in every other case, £3,000:

Provided that, where the income of a qualifying lessor consists of, or includes, rent or rents from a qualifying lease or qualifying leases made before the 30th day of January, 1991, and from a qualifying lease or qualifying leases made on or after that date, the specified amount shall not exceed £4,000 or, as may be appropriate, £3,000.

Amendment of section 31 (interpretation Chapter IV)) of Finance Act, 1986 .

11.— Section 31 of the Finance Act, 1986 , is hereby amended, in the definition of "relevant deposit" in subsection 1—

( a ) by the insertion in paragraph (a), with effect as on and from the 3rd day of December, 1990, of the following subparagraph after subparagraph (i):

"(ia) the National Treasury Management Agency,",

and

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

"( e ) which is a deposit denominated in a foreign currency but not including such a deposit made by an individual on or after the 1st day of June, 1991:

Provided that, where on or after that date a deposit denominated in a foreign currency is made by an individual to a relevant deposit taker with whom that individual had a deposit denominated in the same foreign currency immediately prior to that date, such a deposit shall not be regarded as a relevant deposit,".

General medical services, scheme of superannuation.

12.—(1) Subject to the following provisions of this section, the Revenue Commissioners may, if they think fit, and subject to any undertakings and conditions that they think proper to attach to the approval, approve for the purposes of Chapter II of Part I of the Finance Act, 1972 , a scheme of superannuation provided for under an agreement for the provision of services under section 58 of the Health Act, 1970 (hereafter in this section referred to as "a scheme"), as if it were a retirement benefits scheme within the meaning of that Chapter and notwithstanding that it does not satisfy one or more of the conditions set out in subsections (2) and (3) of section 15 of that Act.

(2) As respects a scheme approved under this section, the provisions of Chapter II of Part I of, and Parts I and VI of the First Schedule to, the Finance Act, 1972 , shall apply subject to any necessary modifications and, in particular, as if in those provisions—

( a ) "employee" included a registered medical practitioner providing services under an agreement for the provision of services under section 58 of the Health Act, 1970 (hereafter in this section referred to as "an agreement"),

( b ) "service" included services by a registered medical practitioner under an agreement and an "office or employment" included the provision of such services, and

( c ) a reference to "Schedule E" were a reference to Case II of Schedule D, except in section 20 of the said Act.

(3) Chapter III of Part XII of the Income Tax Act, 1967 , shall apply as if a member of a scheme were the holder of a pensionable office or employment and his income assessable to tax under Case II of Schedule D arising from an agreement were remuneration from such an office or employment.

The Great Book of Ireland Trust.

13.—(1) In this section "the Trust" means "The Great Book of Ireland Trust" established by trust deed dated the 12th day of December, 1990, for the purposes of—

( a ) making and carrying to completion and selling a unique manuscript volume (hereafter in this section referred to as "The Great Book of Ireland"), and

( b ) using the proceeds of the sale of The Great Book of Ireland for the benefit of—

(i) a company incorporated on the 5th day of August, 1986, as Clashganna Mills Trust Limited, and

(ii) a company incorporated on the 1st day of March, 1991, as Poetry Ireland Limited.

(2) Notwithstanding any provision of the Income Tax Acts,

( a ) income arising to the trustees of the Trust in respect of the sale by it of The Great Book of Ireland, and

( b ) payments made to the said companies under the Trust by the trustees of the Trust,

shall be disregarded for all the purposes of those Acts.

CHAPTER II Tax: Relief Investment in Corporate Trades

Extension of relief.

14.—Chapter III of Part I of the Finance Act, 1984 , is hereby amended—

( a ) in section 12, by the substitution of the following subsection for subsection (11):

"(11) This section applies only where the shares concerned are issued in the year 1984-85 or any of the 8 years of assessment immediately following.",

and

( b ) in section 13, by the substitution, in the provisos to subsections (2A) and (2B) (inserted by the Finance Act, 1987 ), of "the year 1992-93" for "the year 1990-91",

and the said provisos, as so amended, are set out respectively in the Table to this section.

TABLE

Provided that this subsection shall not apply or have effect for any year of assessment subsequent to the year 1992-93.

Restriction of relief as respects eligible shares issued on or after 30th January, 1991.

15.—(1) Subject to section 16, Chapter III of Part I of the Finance Act, 1984 , is hereby further amended, as respects eligible shares issued on or after the 30th day of January, 1991—

( a ) in section 12, by the deletion of the first proviso (inserted by the Finance Act, 1989 ) to paragraph (c)of subsection (1),

( b ) in section 13, by the insertion after subsection (2) of the following proviso:

"Provided that, notwithstanding the provisions of subsection (2A), relief shall not be given to the extent to which the relief in respect of the amount, or the total of the amounts, subscribed by an individual for eligible shares issued to him (whether or not by the same company) in all years of assessment (being the year 1984-85 and subsequent years) exceeds £75,000.",

( c ) in section 13A (inserted by the Finance Act, 1989 ), by the substitution of the following subsection for subsection (1)—

"(1) Subject to the following provisions of this section, where a company raises any amount through the issue of eligible shares (hereafter in this section referred to as the 'relevant issue') on any day falling on or after the 30th day of January, 1991, relief shall not be given in respect of the excess of the amount over the amount determined by the formula—

£500,000 - A

where A is—

( a ) £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.",

( d ) in section 15, by the deletion of subsection (13) (inserted by the Finance Act, 1987 ),

( e ) in section 16—

(i) by the deletion, in subsection (2), of subparagraph (iii) of paragraph (a)(inserted by the Finance Act, 1987 ),

(ii) by the deletion, in paragraph (1) of the second proviso (inserted by the Finance Act, 1989 ) to subsection (2), of the words "except where it forms part of the carrying on of qualifying shipping activities within the meaning of section 28 of the Finance Act, 1987 ,", and

(iii) by the substitution, in subsection (2A) (inserted by the Finance Act, 1987 )—

(I) of the following paragraph for paragraph (a)(inserted by the Finance Act, 1989 ):

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

and

(II) of the following paragraph for paragraph (c):

"( c ) the promotion outside the State of—

(i) one or more tourist accommodation facilities for which the Bord maintains a register in accordance with the Tourist Traffic Acts, 1939 to 1987, or

(ii) any of the facilities mentioned in paragraph (b).",

and

( f ) in section 26, by the deletion of subsection (1A) (inserted by the Finance Act, 1987 ).

(2) The Second Schedule to the Finance Act, 1984 , is hereby amended, as respects eligible shares issued on or after the 30th day of January, 1991, by the deletion, in paragraph 1 (inserted by the Finance Act, 1987 ), of "(other than a subsidiary which is a qualifying subsidiary by virtue of section 26 (IA) (inserted by the Finance Act, 1987 ))".

Transitional arrangements in relation to section 15.

16.—(1) In this section—

"auditor", in relation to a company, or its qualifying subsidiary, means the person or persons appointed as auditor of the company, or its qualifying subsidiary, as appropriate, for all the purposes of the Companies Acts, 1963 to 1990;

"prospectus", in relation to a company, means any prospectus, notice, circular, advertisement or other invitation, offering to the public for subscription or purchase any eligible shares (within the meaning of section 12 (2) of the Finance Act, 1984 ) of the company, and in this definition the term "the public" includes any section of the public, whether selected as members of the company or as clients of the person issuing the prospectus or in any other manner;

"qualifying subsidiary", in relation to a company, has the same meaning as it has for the purposes of section 15 of the Finance Act, 1984 ;

"the specified period" means the period beginning on the 1st day of January, 1990, and ending on the 30th day of January, 1991.

(2) As respects eligible shares issued on or after the 30th day of January, 1991, but on or before the 31st day of August, 1991, by a company to which this section applies—

(a) subject to paragraph (b) of this subsection, section 15, other than paragraphs (b) and ( c ) of subsection (1), shall not apply or have effect, and

( b ) subsection (1) (as amended by section 15 (1) (c)) of section 13A (inserted by the Finance Act, 1989 ) of the Finance Act, 1984 , shall apply and have effect as if "£1,000,000" were substituted for "£500.000" in both places where it occurs.

(3) Subject to the conditions set out in subsection (4), this section applies to a company which, or whose qualifying subsidiary, either carries on or intends to carry on one or more of the qualifying trading operations mentioned in subparagraph (i) (as amended by the Finance Act, 1990 ), (ii) (inserted by the Finance Act, 1990 ), (iii) or (iv) of paragraph (a)(inserted by the Finance Act, 1987 ) of subsection (2) of section 16 of the Finance Act, 1984 .

(4) The following are the conditions referred to in subsection (3), that is to say:

( a ) in the case of a company which, or whose qualifying subsidiary, either carries on or intends to carry on a qualifying trading operation as is mentioned in subparagraph (i) or (ii) of paragraph (a)of subsection (2) of section 16 of the Finance Act, 1984 , that—

(i) in the specified period the company or its qualifying subsidiary, as the case may be, had entered into a binding contract in writing—

(I) to purchase or lease land or a building,

(II) to purchase or lease plant or machinery, or

(III) for the construction or refurbishment of a building,

to be used in the carrying on of its qualifying trading operation, and

(ii) the company proves to the satisfaction of the Revenue Commissioners that—

(I) on or before the 30th day of January, 1991, it had an intention to raise money under the provisions of Chapter III of Part I of the Finance Act, 1984 , and

(II) the contract which it or its qualifying subsidiary, as the case may be, had entered into was integral to, or consistent with, the purpose for which it had intended to raise money as aforesaid:

Provided that, in determining whether they are satisfied that the company has complied with the requirements specified in subparagraph (ii) of this paragraph, the Revenue Commissioners shall have regard to either or both of the following—

(A) an application in writing made by the company to the Revenue Commissioners in the specified period for the opinion of the Revenue Commissioners as to whether the company would be a qualifying company for the purposes of Chapter III of Part I of the Finance Act, 1984 , and

(B) the publication in the specified period of a prospectus by, or on behalf of, the company;

( b ) in the case of a company which, or whose qualifying subsidiary, either carries on or intends to carry on a qualifying trading operation as is mentioned in subparagraph (iii) of paragraph (a)of subsection (2) of section 16 of the Finance Act, 1984 , that—

(i) in the specified period the company or its qualifying subsidiary, as the case may be, had entered into a binding contract in writing for the purchase of a ship to be used in the carrying on of its qualifying trading operation, and

(ii) on or before the 30th day of January, 1991, the company or its qualifying subsidiary, as the case may be, had received a certificate from the Minister for the Marine certifying that 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

( c ) in the case of a company which, or whose qualifying subsidiary, either carries on or intends to carry on a qualifying trading operation as is mentioned in subparagraph (iv) of paragraph (a)of subsection (2) of section 16 of the Finance Act, 1984 , that—

(i) on or before the 30th day of January, 1991, the company or its qualifying subsidiary, as the case may be, had submitted to, and had approved of by, Bord Fáilte Éireann a three-year marketing and development plan as is mentioned in paragraph (a)of subsection (3A) (inserted by the Finance Act, 1987 ) of section 15 of the Finance Act, 1984 , in respect of its qualifying trading operation,

(ii) in the specified period the company or its qualifying subsidiary, as the case may be, had entered into a binding contract in writing—

(I) to purchase or lease land or a building,

(II) to purchase or lease plant or machinery, or

(III) for the construction or refurbishment of a building,

to be used in the carrying on of its qualifying trading operation, and

(iii) the company proves to the satisfaction of the Revenue Commissioners that the contract which it, or its qualifying subsidiary, as the case may be, had entered into was integral to, or consistent with, the three-year marketing and development plan approved of by Bord Fáilte Éireann.

(5) For the purposes of subsection (4)—

( a ) the date on which a contract was entered into by a company or, as the case may be, its qualifying subsidiary, and

( b ) the date on which a prospectus was published by, or on behalf of, a company,

shall be confirmed in a certificate by the auditor of the company, or its qualifying subsidiary, as appropriate.

Amounts raised by companies acting in concert, or for trade of subsidiary.

17.—(1) Subject to subsection (3), section 13A (inserted by the Finance Act, 1989 ) of the Finance Act, 1984 , is hereby amended—

( a ) by the insertion, after subsection (1) (as amended by section 15 (1) (c)), of the following subsections:

"(1A) Where a company raises any amount through a relevant issue on any day falling on or after the 12th day of March, 1991, and—

( a ) any agreement, arrangement or understanding exists whereby—

(i) a qualifying trading operation or qualifying trading operations is or are carried on, or is or are to be carried on, by that company, or its qualifying subsidiary, and one or more other companies, or

(ii) different parts of what was formerly a single qualifying trading operation or a single set of qualifying trading operations are, or are to be, carried on by that company, or its qualifying subsidiary, and one or more other companies, or

(iii) separate qualifying trading operations—

(I) which together produce a single product or provide a single service, or

(II) which separately produce products or provide services that closely resemble, or are similar to, or are of the same kind or nature as, each other,

are, or are to be, carried on by that company, or its qualifying subsidiary, and one or more other companies, or

(iv) separate qualifying trading operations are, or are to be, carried on by that company, or its qualifying subsidiary, and one or more other companies acting together in pursuit of a common purpose or, either directly or indirectly, in accordance with the wishes or directions of, or under the control of, any person or any group of persons or groups of persons having a reasonable commonality of identity and who have or had the means or power, either directly or indirectly, to determine the trading operations to be carried on by each company,

and

( b ) it could reasonably be considered that the purpose of, or one of the purposes of, the aforesaid agreement, arrangement or understanding is to circumvent the limitation imposed by subsection (1),

then, as respects that company, relief shall not be given in respect of the excess of the amount so raised over the amount determined by the formula—

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where—

B is an amount equal to so much, as does not exceed £500,000, of the aggregate of all amounts raised through the issue of eligible shares at any time before the relevant issue by all of the companies (including that company) which are party to the aforesaid agreement, arrangement or understanding, and

C is the total number of companies, apart from that company or any of its qualifying subsidiaries, which are party to the aforesaid agreement, arrangement or understanding.

(1B) In subsection (1A), 'qualifying subsidiary', in relation to a company, has the same meaning as it has for the purposes of section 15.",

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

"(2) In determining, for the purposes of the formula in subsection (1) or, as the case may be, the formula in subsection (1A), the amount to which paragraph (b)in subsection (1) or, as the case may be, the amount to which B in subsection (1A), 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.",

and

( c ) by the insertion, in subsection (3), of "or subsection (1A)" after "subsection (1)",

and the said subsection (3), as so amended, is set out in the Table to this subsection.

TABLE

(3) Where, as a consequence of subsection (1) or subsection (1A), 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.

(2) Subject to subsection (3), section 15 of the Finance Act, 1984 , is hereby amended, in subsection (2), by the insertion after paragraph (b) of the following proviso to that paragraph:

"Provided that where a company raises any amount through the issue of eligible shares on any day falling on or after the 12th day of March, 1991, for the purposes of raising money for a qualifying trade which is being carried on by a qualifying subsidiary or which such a qualifying subsidiary intends to carry on the amount so raised shall be used for the purpose of acquiring eligible shares in the qualifying subsidiary and for no other purpose.".

(3) Subsections (1) and (2) shall not apply or have effect in relation to—

( a ) eligible shares issued on or before the 31st day of August, 1991, by a company to which section 16 applies, or

( b ) eligible shares issued by a company, other than a company referred to in paragraph (a), which, on or before the 11th day of March, 1991—

(i) had made an application in writing to the Revenue Commissioners for the opinion of the Revenue Commissioners as to whether the company would be a qualifying company for the purposes of Chapter III of Part I of the Finance Act, 1984 , or

(ii) had published, or had published on its behalf, a prospectus:

Provided that the date on which the prospectus was published shall be confirmed in a certificate by the auditor of the company.

(4) In subsection (3) "auditor", in relation to a company, and "prospectus", in relation to a company, have the same meanings, respectively, as they have in section 16.

CHAPTER III Income Tax, Corporation Tax and Capital Gains Tax

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

18.—(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended by the substitution of "1992" for "1990" (inserted by the Finance Act, 1989 )—

( 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, 1992.

(7) Where in relation to an accounting period a company's 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, if the accounting period ends on a date before the 6th day of April, 1992, be treated in the computation of the company's trading income for the purposes of co oration 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, 1992, 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, 1992,

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, 1992, 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 "1992-93" for "1990-91" (inserted by the Finance Act, 1989 ), and

( b ) by the substitution of "1992" for "1990" (inserted by the Finance Act, 1989 ) 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 1992-93.

(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, 1992, 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, 1992, 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, 1992,

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, 1992, 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, 1992:

(3) As respects disposals made on or after the 6th day of April, 1990, section 28 of the Finance Act, 1980 , is hereby amended in paragraph (b) of subsection (3) by the substitution in subparagraph (ii) of the following clause for clause (II) (inserted by the Finance Act, 1990 ):

"(II) the value of the said trading stock at the beginning of the immediately succeeding accounting period or, where appropriate, at the beginning of the immediately succeeding accounting period and at the beginning of the accounting period next after that period,".

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

Amendment of section 18 (taxation of collective investment undertakings) of Finance Act, 1989 .

19.—(1) Section 18 of the Finance Act, 1989 , is hereby amended in subsection (I)—

( a ) by the substitution for the definition of "collective investment undertaking" of the following:

"'collective investment undertaking' means—

( a ) a unit trust scheme which is, or is deemed to be, an authorised unit trust scheme within the meaning of the Unit Trusts Act, 1990 , and which has not had its authorisation under that Act revoked,

( 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, and

( c ) any authorised investment company within the meaning of Part XIII of the Companies Act, 1990 , which—

(i) has not had its authorisation under that Part of the said Act revoked, and

(ii) has been designated in that authorisation as an investment company which may raise capital by promoting the sale of its shares to the public and has not ceased to be so designated;",

and

( b ) by the addition to the definition of "specified collective investment undertaking", after paragraph (b) of that definition, of the following:

"and shall include any company limited by shares or guarantee which—

( c ) is wholly owned by such a collective investment undertaking or its trustees, if any, for the benefit of the holders of units in that undertaking,

( d ) is so owned solely for the purpose of limiting the liability of that undertaking or its trustees, as the case may be, in respect of futures contracts, options contracts or other financial instruments with similar risk characteristics, by enabling it or its trustees, as the case may be, to invest or deal in such instruments through the said company, and

( e ) would, if references to an undertaking in paragraph (a) were to be construed as including references to a company limited by shares or guarantee, satisfy the condition set out in paragraph (a);",

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

(2) References to a collective investment undertaking in section 18 (as amended by this section) of the Finance Act, 1989 , apart from such references in the definition of a specified collective investment undertaking in subsection (1) of that section (as so amended), shall include references to a company limited by shares or guarantee which is a specified collective investment undertaking within the meaning of that section (as so amended).

( 3 ) ( a ) Subject to paragraph (b), subsection (1) (a) shall be deemed to have effect as on and from the 26th day of December, 1990.

( b ) The definition of "collective investment undertaking", as inserted by this section, in section 18 of the Finance Act, 1989 , shall be construed as if until the 1st day of February, 1991, that definition did not include paragraph (c)thereof and, accordingly, that paragraph shall be deemed to have effect as on and from that day.

( c ) Subsections (1) (b) and (2) shall be deemed to have effect as on and from the 1st day of April, 1991.

TABLE

"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;

and shall include any company limited by shares or guarantee which—

( c ) is wholly owned by such a collective investment undertaking or its trustees, if any, for the benefit of the holders of units in that undertaking,

( d ) is so owned solely for the purposes of limiting the liability of that undertaking or its trustees, as the case may be, in respect of futures contracts, options contracts or other financial instruments with similar risk characteristics, by enabling it or its trustees, as the case may be, to invest or deal in such instruments through the said company, and

( e ) would, if references to an undertaking in paragraph (a)were to be construed as including references to a company limited by shares or guarantee, satisfy the condition set out in paragraph (a);

Exemption of National Treasury Management Agency from certain tax provisions.

20.—(1) Notwithstanding any provision of the Corporation Tax Acts, profits arising to the National Treasury Management Agency (hereafter in this section referred to as "the Agency") in any accounting period ending on or after the 3rd day of December, 1990, shall be exempt from corporation tax.

(2) Section 23 of the Capital Gains Tax Act, 1975 , shall apply to a gain accruing to the Agency as it does to a gain accruing to a body specified in that section.

(3) Notwithstanding any provision of the Tax Acts, any interest, annuity or other annual payment paid by the Agency shall be paid without deduction of income tax.

Amendment of section 45 (double rent allowance as a deduction in computing trading income) of Finance Act, 1986 .

21.—(1) Section 45 (as amended by section 32 of the Finance Act, 1990 ) of the Finance Act, 1986 , is hereby amended—

( a ) in subsection 1—

(i) by the substitution, in subparagraph (II) of paragraph (i) of the definition of "qualifying premises", of "falls, or will by virtue of section 23 of the Finance Act, 1991 fall" for "falls",

(ii) by the deletion of the definition of "relevant rental period", and

(iii) by the addition of the following paragraph after paragraph (b):

"( c ) For the purposes of this section, so much of a period, being a period when rent is payable by a person in relation to a qualifying premises under a qualifying lease, shall be a relevant rental period as does not exceed—

(i) 10 years, or

(ii) the period by which 10 years exceeds—

(I) any preceding period, or

(II) if there is more than one preceding period, the aggregate of preceding periods,

for which rent was payable by that person or any person connected with that person in relation to that premises under a qualifying lease.",

and

( b ) in subsection (2), by the substitution of "for a relevant rental period" for "in the relevant rental period" and the said subsection (2), other than the proviso, as so amended, is set out in the Table to this section.

(2) This section shall take effect as respects rent payable in relation to any qualifying premises under a qualifying lease entered into on or after the 18th day of April, 1991.

TABLE

(2) Where, in the computation of the amount of the profits or gains of a trade or profession, a person is, apart from this section, entitled to any deduction (hereafter in this subsection referred to as "the first-mentioned deduction") on account of rent in respect of a qualifying premises occupied by him for the purposes If that trade or profession which is payable by him for a relevant rental period in relation to that qualifying premises under a qualifying lease, he shall be entitled in that computation to a further deduction equal to the amount of the first-mentioned deduction.

Continuation of certain allowances, etc.

22.—(1) The provisions (inserted by the Corporation Tax Act, 1976 , and amended by section 50 of the Finance Act, 1988 ) of the Income Tax Act, 1967 , specified in the Table to this section shall have effect as if the references to the 1st day of April, 1991 (as provided for in section 50 of the Finance Act, 1988 ) were references to the 1st day of April, 1996:

Provided that subsection (2A) ( a ) of section 254 of the Income Tax Act, 1967 , shall have such effect for the purposes only of section 51 (as amended by section 80 of the Finance Act, 1990 ) of the Finance Act, 1988 , section 81 of the Finance Act, 1990 , and Chapter VII of the Finance Act, 1991 .

( 2 ) ( a ) Subsection (3) of section 42 of the Finance Act, 1986 , is hereby repealed.

( b ) This subsection shall be deemed to have come into effect on the 1st day of June, 1989.

TABLE

Subsection (2A) ( a ) of section 254 (industrial building allowance),

Paragraph (ii) of the proviso to subsection (1) and paragraph (ii) of the proviso to subsection (3) of section 264 (annual allowances),

Paragraph (iii) of the proviso to subsection (1) of section 265 (balancing allowances and balancing charges).

Amendment of section 19 (industrial building allowance in relation to buildings and structures bought unused) of Finance Act, 1970 .

23.— Section 19 (as amended by section 75 of the Finance Act, 1990 ) of the Finance Act, 1970 , is hereby amended—

( a ) in subsection (1), by the substitution for "the relevant interest therein is sold" of "or within a period of one year after it commences to be used, the relevant interest therein is sold, then, provided that an allowance has not been claimed by any other person in respect of the said building or structure under Chapter II of Part XV or Chapter 1 of Part XVI of the Income Tax Act, 1967 ,",

( b ) in the proviso to subsection (1), by the substitution for "is used" of "is used or within the said period", and

( c ) in subsection (2)—

(i) by the substitution for "used, he" of "used, or within a period of one year after it commences to be used, he",

(ii) by the deletion of "paragraph (b) of",

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

"( a ) if that sale is the only sale of the relevant interest before the building or structure is used or within the said period, the said subsection (1) shall have effect as if, in paragraph (b), 'the said expenditure or to' and 'whichever is the less' were omitted, and",

and

(iv) in paragraph (b), by the substitution for "used" of ,,used or within the said period" and the substitution for "paragraph (b)" of "subsection (1)",

and the said subsection (1) (including the proviso) and subsection (2), as so amended, are set out in the Table to this section.

TABLE

(1) Where expenditure is incurred on the construction of a building or structure and, before that building or structure is used, or within a period of one year after it commences to be used, the relevant interest therein is sold, then, provided an allowance has not been claimed by any other person in respect of the said building or structure under either Chapter II of Part XV or Chapter I of Part XVI of the Income Tax Act, 1967 —

( a ) the expenditure actually incurred on the construction thereof shall be left out of account for the purposes of sections 254 , 264 , 265 and 266 of the Income Tax Act, 1967 ; but

( b ) the person who buys that interest shall be deemed for those purposes to have incurred, on the date when the purchase price becomes payable, expenditure on the construction thereof equal to the said expenditure or to the net price paid by him for the said interest, whichever is the less:

Provided that, where the relevant interest in the building or structure is sold more than once before the building or structure is used or within the said period, the provisions of paragraph (b)shall have effect only in relation to the last of those sales.

(2) Where the expenditure incurred on the construction of a building or structure was incurred by a person carrying on a trade which consists, as to the whole or any part thereof, in the construction of buildings or structures with a view to their sale, and, before the building or structure is used, or within a period of one year after it commences to be used, he sells the relevant interest therein in the course of that trade, or, as the case may be, of that part of that trade, subsection (1) shall have effect subject to the following modifications—

( a ) if that sale is the only sale of the relevant interest before the building or structure is used or within the said period, the said subsection (1) shall have effect as if, in paragraph (b), "the said expenditure or to" and "whichever is the less 'were omitted, and

( b ) if there is more than one sale of the relevant interest before the building or structure is used or within the said period, the said subsection (1) shall have effect as if the reference to the expenditure actually incurred on the construction of the building or structure were a reference to the price paid on the said sale.

Restriction of tax incentives on property investment.

24.—(1) In this section—

"property investment scheme" means any scheme or arrangement made for the purpose, or having the effect, of providing facilities, whether promoted by way of public advertisement or otherwise, for the public or a section of the public to share, either directly or indirectly and whether as beneficiaries under a trust or by any other means, in income or gains arising or deriving from the acquisition, holding or disposal of, or of an interest in, a building or structure or a part thereof, but does not include a scheme or arrangement as respects which the Revenue Commissioners or, on appeal, the Appeal Commissioners, having regard to such information as may be produced to them, are of the opinion that—

( a ) the manner in which persons share in the said income or gains, and

( b ) the number of persons who so share,

are in accordance with a practice which commonly prevailed in the State during the period of 5 years ending immediately before the 30th day of January, 1991, for the sharing of such income or gains by persons resident in the State and such that the persons so sharing qualified for relief under—

(i) the proviso to subsection (1) of section 296 of the Income Tax Act, 1967 , or

(ii) subsection (6) of section 14 of the Corporation Tax Act, 1976 ;

"specified interest" means an interest in or deriving from a building or structure held by a person pursuant to a property investment scheme.

(2) Where a person holds a specified interest then, as respects expenditure incurred or deemed to be incurred on or after the 30th day of January, 1991, the proviso to subsection (1) of section 296 of the Income Tax Act, 1967 , and subsection (6) of section 14 of the Corporation Tax Act, 1976 , shall not have effect as respects an allowance under section 254 (as amended by section 74 of the Finance Act, 1990 ) or section 264 (as amended by section 50 of the Finance Act, 1988 ) of the said Act of 1967, which falls to be made to the person by reason of the holding by him of the specified interest.

(3) The Appeal Commissioners shall hear and determine an appeal made to them under this section as if it were an appeal against an assessment to income tax and 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.

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

25.— Section 22 of the Finance Act, 1974 , is hereby amended—

( a ) by the insertion, in the proviso to subsection (2) (inserted by section 16 of the Finance Act, 1982 ), of the following paragraph after paragraph (b)(as amended by section 77 of the Finance Act, 1990 ):

"( c ) notwithstanding subparagraph (iii) of paragraph (b), the maximum farm buildings allowances to be made under this section by means of an allowance increased under paragraph (a)in relation to capital expenditure incurred—

(i) on or after the 1st day of April, 1991, and before the 1st day of April, 1993,

(ii) for the purposes of the control of farmyard pollution, and

(iii) on works in respect of which grant-aid has been paid under—

(I) the programme, as amended, known as "the Farm Improvement Programme" which was implemented by the Minister for Agriculture and Food pursuant to Council Regulation (EEC) No. 797/85 of 12 March 1985 ⁽¹⁾ , or

(II) the scheme known as "the Scheme of Investment Aid for the Control of Farmyard Pollution" which was implemented by the Minister for Agriculture and Food pursuant to an operational programme under Council Regulation (EEC) No. 2052/88 of 24 June 1988 ⁽²⁾ ,

whether claimed in one chargeable period or more than one such period, shall not, in the aggregate, exceed one-half of that capital expenditure."

and

( b ) by the substitution, for subsection (2C) (inserted by section 77 of the Finance Act, 1990 ) of the following subsection:

"(2C) Notwithstanding any other provision of this section other than paragraph (c)of the proviso to subsection (2), no farm buildings allowance made in relation to capital expenditure incurred on or after the 1st day of April, 1992, shall be increased under this section.".

Application of sections 264 and 265 of Income Tax Act, 1967 , in relation to capital expenditure on refurbishment.

26.—(1) Notwithstanding any other provision of the Tax Acts where, on or after the 6th day of April, 1991, any capital expenditure has been incurred on the refurbishment of a building or structure in respect of which an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV or under Chapter I of Part XVI of the Income Tax Act, 1967 , sections 264 and 265 of the Income Tax Act, 1967 , shall have effect as if—

( a ) in subsection (3) of the said section 264, and

( b ) in paragraph (i) of the proviso to subsection (1) of the said section 265,

there were substituted "the capital expenditure on refurbishment of the building or structure was incurred for "the building or structure was first used".

( 2 ) ( a ) In this section "refurbishment" means any work of construction, reconstruction, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, carried out in the course of repair or restoration, or maintenance in the nature of repair or restoration, of a building or structure.

( b ) For the purposes of giving effect to the provisions of this section insofar as the computation of a balancing allowance or balancing charge (within the meaning of Chapter I of Part XVI of the Income Tax Act, 1967 ), as the case may be, is concerned, there shall be made all such apportionments as are, in the circumstances, just and reasonable.

Amendment of section 29 (taxation of income deemed to arise on certain sales of securities) of Finance Act, 1984 .

27.— Section 29 of the Finance Act, 1984 , is hereby amended as respects any sale or transfer of securities (within the meaning of that section) made on or after the 18th day of May, 1991, by the substitution of the following subsections for subsections (2) and (3):

"(2) Subject to subsection (2A), where the owner of a security sells or transfers, or causes or authorises to be sold or transferred, the security and where any interest payable in respect of the security is receivable otherwise than by that owner, then, for the purposes of this section, interest payable in respect of the security shall he deemed to have accrued on a day to day basis from the date on which that owner acquired the security and that owner shall be chargeable under Case IV of Schedule D on interest so deemed to have accrued from that date up to the date of the contract for sale or transfer of the security or the date of payment of the consideration in respect of the sale or transfer, whichever is the later:

Provided that, if during his period of ownership of the security that owner has received interest in respect of the security in respect of which he is chargeable to tax under any other provision of the Tax Acts, then the amount of interest on which he is chargeable under this section shall be reduced by the amount in respect of which he is so chargeable under that other provision:

Provided also that—

( a ) if under the terms of the said sale or transfer or an associated agreement, arrangement, understanding, promise or undertaking, whether express or implied, that owner—

(i) agrees to buy back or reacquire the security, or

(ii) acquires an option, which he subsequently exercises, to buy back or reacquire the security,

then the charge to tax imposed under this section shall be based on the interest deemed to have accrued up to the next date after the aforesaid sale or transfer on which interest is payable in respect of the security, and

( b ) if that owner subsequently resells or retransfers, or causes or authorises to be resold or retransferred, the security, then any further charge to tax under this section in respect of that subsequent resale or retransfer shall be based on interest deemed to have accrued from a date not earlier than the aforesaid next payment date.

(2A) This section shall not apply—

( a ) if the security has been held by the same owner for a continuous period of at least two years immediately before the date of such contract for sale or transfer or the date of such payment of consideration, whichever is the later, as is referred to in subsection (2), the personal representatives of a deceased person whose estate is in the course of administration and the deceased person being regarded, for the purposes of this paragraph, as being the same owner, or

( b ) if the owner is a person carrying on a trade which consists wholly or partly of dealing in securities the profits of which are chargeable to income tax or corporation tax under Case I of Schedule D for the year of assessment or, as the case may be, the accounting period in respect of which the consideration for the sale is taken into account in computing for the purposes of assessment to income tax or corporation tax for that year or accounting period the profits of the trade unless the trade consists wholly or partly of a life business the profits of which are not assessed to corporation tax under Case I of Schedule D for that accounting period, or

( c ) if the sale or transfer is a sale or transfer by a wife to her husband at a time when she is treated as living with him for income tax purposes as provided in section 192 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , or a sale or transfer by a husband to a wife at such a time as aforesaid, the husband and the wife being regarded, for the purposes of paragraph (a), in the case of a transaction such as aforesaid or in the case of a sale or transfer by the husband or the wife to any other person after a transaction or transactions such as aforesaid, as being the same owner, or

( d ) if the security is a security the interest on which is treated as a distribution for the purposes of the Corporation Tax Acts.

(3) ( a ) The reference in subsection (2) to buying back or reacquiring the security shall be deemed to include references to buying or acquiring a similar security, and securities shall be so deemed to be similar if they entitle their holders to the same rights against the same persons as to capital and interest and the same remedies for the enforcement of those rights, notwithstanding any difference in the total nominal amounts of the respective securities or in the form in which they are held or the manner in which they can be transferred.

( b ) In paragraph (b) of subsection (2A), 'life business' shall have the meaning assigned to it by section 50 (2) of the Corporation Tax Act, 1976 .".

CHAPTER IV Corporation Tax

Amendment of section 84A (limitation on meaning of "distribution") of Corporation Tax Act, 1976 .

28.—Section 84A (as amended by the Finance Act, 1990 ) of the Corporation Tax Act, 1976 , is hereby amended—

( a ) by the insertion, after subsection (3A), of the following subsection:

"(3B)( a ) Notwithstanding subsections (2),(3) and (3A), where at any time on or after the 31st day of December, 1991, 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 40 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 12th day of April, 1989, then any interest paid to the company in respect of relevant principal advanced by the company on or after the 31st day of December, 1991, which relevant principal is included in 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:

Provided that—

(i) where the total of the amounts of relevant principal advanced by a company in respect of relevant securities held, directly or indirectly, by the company at any time on or after the 31st day of December, 1991, is less than the said limit, this paragraph shall have effect as if the said limit were the total of the amounts of relevant principal so advanced as at that time unless the company proves that it has, as far as possible, at all times on or after the 31st day of December, 1991, advanced to borrowers relevant principal in respect of the interest on which the provisions of paragraph (a)do not, or would not, apply by virtue of the provisions of paragraph (b), and

(ii) where at any time during the period commencing on the 18th day of April, 1991, and ending immediately before the 31st day of December, 1991, an amount of relevant principal which was advanced to a borrower, being a company which carries on one or more trading operations (within the meaning of subsection (1) of section 39A, as amended by the Finance Act, 1991 , of the Finance Act, 1980 ) is repaid, this section shall have effect as if—

(I) references in paragraph (a)of this subsection, other than this paragraph of the proviso, to the 31st day of December, 1991, were references to the day on which the amount is repaid, and

(II) during that period—

(A)the reference in paragraph (i) of this proviso to relevant principal in respect of the interest on which the provisions of paragraph (a)do not, or would not, apply by virtue of the provisions of paragraph (b)were a reference to such principal in respect of the interest on which the provisions of paragraph (a)of subsection (3A) do not, or would not, apply by virtue of the provisions of paragraph (b) of that subsection, and

(B) the reference in paragraph (b) of subsection (3A) to paragraph (a)of that subsection were a reference to paragraph (a)of this subsection.

( b ) Where, apart from this paragraph, any part of any interest paid to a company in respect of relevant principal advanced by the company on or after the 31st day of December, 1991, would not be treated as a distribution for the purposes of this Act in the hands of the company by virtue only of the provisions of paragraph (a), then the provisions of that paragraph shall not apply in relation to so much of that interest as is paid if—

(i) the specified trade is a trade which the borrower commenced to carry on after the 31st day of January, 1990, or is a specified trade of the borrower in respect of which he is committed, under a business plan approved by the Industrial Development Authority, the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta, to the creation of additional employment,

(ii) the specified trade of the borrower is selected by the Industrial Development Authority for inclusion in a list, approved by the Minister for Industry and Commerce and the Minister for Finance, which list specifies a particular amount of relevant principal in respect of each trade which amount is considered to be essential for the success of that trade, and

(iii) the borrower, or a company connected (within the meaning of section 157 (5)) with the borrower, is not a company which commenced to carry on relevant trading operations (within the meaning of section 39B of the Finance Act, 1980 ) after the 20th day of April, 1990, or intends to commence to carry on such trading operations:

Provided that this paragraph shall not apply to any interest in respect of any relevant principal advanced after the time the total of the amounts of relevant principal to which this paragraph applies, advanced by all lenders who have made such advances, exceeds the aggregate of—

( a ) £250,000,000, and

( b ) the excess, if any, of the amount specified in the proviso to paragraph (b) of subsection (3A) over the total of the amounts of relevant principal to which that paragraph applies advanced by all lenders who have made such advances.",

( b ) by the insertion, after subsection (4), of the following subsection:

"(4A)( a ) Interest paid to a company in respect of—

(i) relevant principal, denominated in a currency other than Irish currency, and

(ii) a relevant period which begins on or after the 30th day of January, 1991,

shall not be a distribution for the purposes of this Act in the hands of the company if at any time during the said period the rate on the basis of which that interest is computed exceeds 80 per cent. of the rate known as the three month Dublin Interbank Offered Rate on Irish pounds (hereafter in this subsection referred to as the 'three month Dublin Interbank Offered Rate') a record of which is maintained by the Central Bank of Ireland.

( b ) Paragraph (a)shall not apply to any interest which is paid to a company in respect of relevant principal advanced by the company—

(i) before the 30th day of January, 1991, under an agreement entered into before that day if, on that day, the rate on the basis of which interest in respect of the relevant security falls to be computed exceeds 80 per cent. of the three month Dublin Interbank Offered Rate,

(ii) on or after the 30th day of January, 1991, for the purposes of a specified trade—

(I) which is included in a list referred to in subparagraph (iv) of paragraph (b) of subsection (3A) or subparagraph (ii) of paragraph (b) of subsection (313), and

(II) of a borrower who is certified by the Minister for Industry and Commerce as having received an undertaking that the said interest would be treated as a distribution,

(iii) on or after the 18th day of April, 1991, where the rate on the basis of which that interest is computed exceeds 80 per cent. of the three month Dublin Interbank Offered Rate by reason only that the relevant principal advanced is denominated in sterling, or

(iv) to a borrower which is a company carrying on one or more trading operations (within the meaning of subsection (1) of section 39A, as amended by the Finance Act, 1991 , of the Finance Act, 1980 ).

( c ) In paragraph (a)'relevant period' means a period which commences at a time at which, in accordance with the terms of the agreement under which the relevant principal secured by the said relevant security is advanced, an amount representing the interest for the use of the said relevant principal falls to be paid, and ending at a time immediately before the next time at which such an amount falls to be paid.",

( c ) in subsection (3A)—

(i) by the substitution, in paragraph (a), of "in this subsection and in subsection (3B)" for "in this subsection",

(ii) by the substitution, in paragraph (c), of "this subsection and subsection (3B)" for "this subsection" and of "a day" for "the 31st day of January, 1990,", and

(iii) by the substitution, in paragraph (d), of "this subsection and subsection (3B)" for "this subsection",

( d ) in subsection (5), by the substitution of "In subsections (2), (3), (3A), (313), (4) and (4A)" for "In subsections (2), (3), (3A), and (4)", and

( e ) in subsection (6), by the substitution of "in subsections (2), (3A), (313), (4) and (4A)" for "in subsections (2) and (3A)".

Amendment of section 87 (distributions: supplemental) of Corporation Tax Act, 1976 .

29.— Section 87 of the Corporation Tax Act, 1976 , is hereby amended, as respects any acquisition of shares on or after the 25th day of July, 1990, in subsection (4) by the addition of the following paragraph after paragraph (d):

"( e ) Nothing in this subsection shall require a company, which is a subsidiary (being a subsidiary within the meaning of section 155 of the Companies Act, 1963 ) of another company to be treated as making a distribution where it acquires shares in the other company pursuant to section 9 (1) of the Insurance Act, 1990 .".

Amendment of section 35 (profits of life business) of Corporation Tax Act, 1976 .

30.—(1) Section 35 of the Corporation Tax Act, 1976 , is hereby amended as respects any accounting period ending on or after the 31st day of December, 1990:

( a ) by the addition after subsection (1) of the following subsection:

"(1A) Where a company's trading operations consist solely of a foreign life assurance business as defined in paragraph (a) of subsection (4) of section 36 of the Finance Act, 1988 , then—

( a ) subject to the following provisions of this subsection, the company shall be chargeable to tax in respect of the profits of that business under Case 1 of Schedule D,

( b ) notwithstanding paragraph (b) of subsection (1), where any part of those profits would, apart from this paragraph, be excluded in computing the income chargeable under Case I of Schedule D solely by virtue of that part being reserved for policyholders or annuitants, that part shall not be excluded in computing the income so chargeable,

( c ) the charge to tax under Schedule D of income from investments (hereafter in this subsection referred to as 'shareholders' investments'), which are not investments of any fund representing the amount of the liability of the company in respect of its business with policyholders and annuitants, shall not be under Case I of that Schedule, and

( d ) notwithstanding section 33, section 15 shall apply for computing the profits of the company as respects expenses of management, including commissions, to the extent that those expenses—

(i) are disbursed for the purposes of managing shareholders' investments, and

(ii) would not, apart from this paragraph, be deductible in computing the profits, or any description of profits, of the company for the purposes of corporation tax.",

and

( b ) by the addition after subsection (2) of the following subsection:

"(3) Where, under the provisions of section 25 (1) of the Insurance Act, 1989 , an assurance company amalgamates its industrial assurance and life assurance funds, subsection (2) shall not apply to that company for any accounting period ending on or after the completion of the amalgamation and before the recommencement, if any, of a separate industrial assurance or life assurance fund:

Provided that, for the purposes of applying section 33, in so far as it is affected by—

( a ) management expenses or charges on income which, apart from section 15 (2), would be treated as, respectively, incurred for, or paid in, an accounting period ending before the day on which the amalgamation is completed, or

( b ) any loss incurred in such a period,

to a company which has amalgamated its industrial assurance and life assurance funds, subsection (2) shall apply as if the company had not amalgamated its funds.".

(2) For the purposes of subsection (3) (inserted by this section) of section 35 of the Corporation Tax Act, 1976 , and subsection (1), where an accounting period of an assurance company begins before the day (hereafter in this subsection referred to as "the day of amalgamation") on which the company completes the amalgamation of its industrial assurance and life assurance funds, and ends on or after the day of amalgamation, that period shall be divided into one part beginning on the day on which the accounting period begins and ending on the day before the day of amalgamation and another part beginning on the day of amalgamation and ending on the day on which the accounting period ends, and both parts of the accounting period shall be treated as if they were separate accounting periods.

Securitisation of assets.

31.—(1) In this section—

"qualifying asset" means a loan made by a company (hereafter in this section referred to as "the original lender") on the security of a mortgage of a freehold or leasehold estate or interest in the ordinary course of a trade carried on by it which consists of or includes the lending of money on such security;

"qualifying company" means a company resident in the State which carries on a business of the management of qualifying assets which it acquired from the original lender or original lenders, as the case may be, and does not carry on any other business:

Provided that a company shall not be a qualifying company if any transaction is carried out by it otherwise than by way of a bargain made at arm's length.

(2) For the purposes of the Tax Acts—

( a ) activities carried out in the course of a business carried on by a qualifying company shall be deemed to be activities carried out in the course of a trade, the profits or gains of which are chargeable to tax under Case 1 of Schedule D,

( b ) there shall be deducted as an expense of the trade the amount, in so far as it is not—

(i) otherwise deductible, or

(ii) recoverable from the original lender or under any insurance, contract of indemnity or otherwise howsoever,

of any debt which is proved to the satisfaction of the inspector to be bad and of a doubtful debt to the extent that it is estimated to be bad:

Provided that the amount of the debt shall not be deducted under this paragraph unless it would have been deductible as an expense of the trade of the original lender if that debt had been proved or estimated to be bad before it was acquired by the qualifying company, and

( c ) where at any time an amount, or part of an amount, which has been deducted as an expense under paragraph ( b ) is recovered or is no longer estimated to be bad, the amount which has been so deducted shall, in so far as it is recovered or is no longer estimated to be bad, be treated as trading income of the trade at that time.

Amendment of section 39 (meaning of "goods") of Finance Act, 1980 .

32.—(1) Section 39 (as amended by section 41 of the Finance Act, 1990 ) of the Finance Act, 1980 , is hereby amended by the substitution in paragraph (a)of subsection (3) of "Notwithstanding any other provision of the Tax Acts, the definition" for "The definition", and the said paragraph (a), as so amended, is set out in the Table to this section.

(2) This section shall be deemed to have come into effect as respects any relevant accounting period (within the meaning of section 38 of the Finance Act, 1980 ) beginning on or after the 1st day of April, 1990.

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( a ) Notwithstanding any other provision of the Tax Acts, the definition of "goods" in subsection (1) shall not include goods sold to the intervention agency and, for the purposes of this exclusion, the sale of goods to a person other than the intervention agency shall be deemed to be a sale to the intervention agency if and to the extent that those goods are ultimately sold to the intervention agency.

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

33.—Section 39A (as amended by section 23 of the Finance Act, 1989 ) of the Finance Act, 1980 , is hereby amended—

( a ) in subsection (1), by the substitution of the following definition for the definition of "trading operation":

"'trading operation' means any trading operation which, apart from this section and subsection (1CC4) (inserted by section 41 of the Finance Act, 1990 ) of section 39 of this Act is not the manufacture of goods for the purpose of this Chapter but is carried on by a qualified company.",

and

( b ) in subsection (2), by the substitution of "31st day of December, 2005" for "31st day of December, 2000".

Amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980 .

34.—Section 39B (as amended by section 36 of the Finance Act, 1988 ) of the Finance Act, 1980 , is hereby amended by the substitution in subsection (2) of "31st day of December, 2005" for "31st day of December, 2000".

Amendment of section 41 (amendment of section 39 (meaning of "goods") of Finance Act, 1980 ) of Finance Act, 1990 .

35.— Section 41 of the Finance Act, 1990 , is hereby amended by the substitution of the following proviso for the proviso to subsection (6):

"Provided that corporation tax payable by a company shall not be reduced by virtue of this section if that corporation tax would not have been so reduced if the provisions of subsection (1CC2) (inserted by the Finance Act, 1987 ) of section 39 of the Finance Act, 1980 , had not been enacted.".

Implementation of Council Directive No. 90/435/EEC.

36.—(1) ( a ) In this section—

"arrangements" means arrangements having the force of law by virtue of section 361 of the Income Tax Act, 1967 ;

"bilateral agreement" means any arrangements, protocol or other agreement between the Government and the government of another Member State;

"company" means a company of a Member State;

"company of a Member State" has the meaning assigned to it by Article 2 of the Directive;

"the Directive" means Council Directive No. 90/435/EEC of 23 July 1990* ³ , on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States;

"distribution" means income from shares or from other rights, not being debt claims, to participate in a company's profits, and includes any amount assimilated to income from shares under the taxation laws of the State of which the company, making the distribution, is resident;

"foreign tax" means any tax which—

(i) is payable under the laws of a Member State other than the State, and

(ii) (I) is specified in paragraph (c)of Article 2 of the Directive, or

(II) is substituted for, and is substantially similar to, a tax so specified;

"Member State" means a Member State of the European Economic Community;

"parent company" means a company resident in the State which owns at least 25 per cent. of the share capital of a company not so resident:

Provided that where a bilateral agreement contains a provision to the effect—

(i) that a company shall only be a parent company during any uninterrupted period of at least two years throughout which at least 25 per cent. of the share capital of the company which is not resident in the State is owned by the first-mentioned company, or

(ii) that—

(I) the requirement (being the requirement for the purposes of this definition) that a company resident in the State own at least 25 per cent. of the share capital of the company which is not so resident shall be treated as a requirement that the company so resident holds at least 25 per cent. of the voting rights in the company which is not so resident, or

(II) the said requirement shall be so treated and a company shall only be a parent company during any uninterrupted period of at least two years throughout which at least 25 per cent. of the voting rights in the company which is not resident in the State is held by the first-mentioned company,

then, in its application to a company to which the provision in the bilateral agreement applies, this definition shall have effect subject to that provision and be construed accordingly.

( b ) For the purposes of this section a company shall be a subsidiary of another company which owns shares or holds voting rights in it where the other company's ownership of those shares or holding of those rights is sufficient for that other company to be a parent company.

( c ) A word or expression that is used in this section and is also used in the Directive has, unless the contrary intention appears, the same meaning in this section that it has in that Directive.

(2) Subject to subsections (3) and (4), where, on or after the 1st day of January, 1992, a parent company receives a distribution chargeable in the State to corporation tax, other than a distribution in a winding up, from its subsidiary:

( a ) credit shall be allowed for—

(i) any withholding tax charged on the distribution by the Federal Republic of Germany, the Hellenic Republic or the Portuguese Republic, pursuant to the derogation's provided for in Article 5 of the Directive, and

(ii) any foreign tax, not chargeable directly or by deduction in respect of the distribution, which is borne by the company making the distribution, and is properly attributable to the proportion of its profits which is represented by the distribution, in so far as that foreign tax exceeds so much of any tax credit in respect of the distribution as is payable to the parent company by the Member State in which the company making the distribution is resident,

against corporation tax in respect of the distribution to the extent that credit for such withholding tax and foreign tax would not otherwise be so allowed, and

( b ) notwithstanding any provision of Part XXXI of the Income Tax Act, 1967 , the distribution shall not be a dividend to which that Part applies.

(3) Where by virtue of paragraph (a)of subsection (2) a company is to be allowed credit for tax payable under the laws of a Member State other than the State, the provisions of Schedule 10 to the Income Tax Act, 1967 , shall have effect for the purposes of that subsection as if—

( a ) the provisions of that subsection were arrangements providing that tax so payable shall be allowed as a credit against tax payable in the State, and

( b ) references in the said Schedule 10 to a dividend were references to a distribution as defined in this section.

(4) Subsection (2) shall have effect without prejudice to any provision of a bilateral agreement.

Application of section 25 (attribution of distributions to accounting periods) of Finance Act, 1989 , to interim dividends.

37.— Section 25 (as amended by section 38 of the Finance Act, 1990 ) of the Finance Act, 1989 , shall have effect as respects dividends paid on or after the 6th day of April, 1991, as if in subsection (3) ( a ) for "6th day of April, 1991" there was substituted "6th day of April, 1992":

Provided that a company shall not be entitled, by virtue of this section, to specify, in accordance with subsection (1) of the said section 25, that a distribution, being an interim dividend, or part of it is to be treated as made for the accounting period in which it is made where—

( a ) the circumstances of the company are such that, if the distribution or the part of it, as the case may be, were treated as made for the accounting period in which it is made, the company would be unable, at the time when the interim dividend is paid, to determine without recourse to estimation, how much of the distribution or the part of it, as the case may be, would, in accordance with subsection (1) of section 45 (as amended by section 24 of the Finance Act, 1989 ) of the Finance Act, 1980 , be treated as a specified distribution for the purposes of subsection (2) of the said section 45, or

( b ) that treatment of the distribution or the part of it, as the case may be, as made for the accounting period in which it is made, would facilitate any arrangement whereby the tax credit in respect of a dividend received by a shareholder could exceed the tax credit, if any, in respect of a dividend received by another shareholder, notwithstanding that the shareholdings of those shareholders carry the same or substantially similar rights in respect of dividends and capital.

Amendment of section 30 (pension funds: extension of tax exemptions to dealings in financial futures and traded options) of Finance Act, 1988 .

38.—As respects contracts entered into on or after the 1st day of April, 1991, section 30 of the Finance Act, 1988 , is hereby amended by the substitution of the following subsection for subsection (1):

"(1) In this section 'financial futures' and 'traded options' mean, respectively, financial futures and traded options which are for the time being dealt in or quoted on any futures exchange or any stock exchange, whether or not that exchange is situated in the State.".

Amendment of section 45 (Trust for Community Initiatives) of Finance Act, 1990 .

39.— Section 45 of the Finance Act, 1990 , is hereby amended by the substitution, in paragraph (a)of subsection (2), of "31st day of March, 1992" for "31st day of March, 1991".

Amendment of section 41 (relief from corporation tax in respect of certain dividends from a non-resident subsidiary) of Finance Act, 1988 .

40.— Section 41 of the Finance Act, 1988 , is hereby amended with effect from the 1st day of January, 1991, in paragraph (a)of subsection (1)—

( a ) by the substitution for the definition of "investment plan" of the following:

"'investment plan' means a plan of a company resident in the State which is directed towards the creation or maintenance of employment in the State in trading operations carried on, or to be carried on, in the State and which has been submitted—

(i) prior to the commencement of its implementation, or

(ii) where the Minister is satisfied that there was reason able cause for it to be submitted after the commencement of its implementation, within one year from that commencement,

to the Minister by the company for the purpose of enabling it to claim relief under this section;",

and

( b ) by the substitution for the definition of "relevant dividends" of the following:

"'relevant dividends' means dividends, received on or after the 6th day of April, 1988, by a company resident in the State (being the company claiming relief under this section) from a foreign subsidiary of the company, which are—

(i) specified in a certificate given by the Minister under subsection (2), and

(ii) applied, not earlier than the 6th day of April, 1988, and within a period—

(I) which begins one year before the first day on which the dividends so specified are received in the State, or at such earlier time as the Revenue Commissioners may by notice in writing allow, and

(II) which ends two years after the first day on which the dividends so specified are received in the State, or at such later time as the Revenue Commissioners may by notice in writing allow,

for the purposes of an approved investment plan;".

Exemption from corporation tax of An Bord Pinsean The Pensions Board.

41.—Notwithstanding any provision of the Corporation Tax Acts profits arising in any accounting period ending after the 1st day of January, 1991, to An Bord Pinsean—The Pensions Board shall he exempt from corporation tax.

CHAPTER V Capital Gains Tax

Amendment of section 26 (disposal of business or farm on retirement) of Capital Gains Tax Act, 1975 .

42.— Section 26 of the Capital Gains Tax Act, 1975 , is hereby amended

( a ) by the substitution in subsection (1) of "£200,000" for "£50,000" in each place where it occurs, and

( b ) by the substitution in subsection (6) ( a ) (as amended by the Finance Act, 1990 ) of the following definition for the definition, other than the proviso thereto, of "qualifying assets":

"'qualifying assets', in relation to a disposal, includes the chargeable business assets of the individual which, apart from tangible movable property, he has owned for a period of not less than ten years ending with the disposal and the shares or securities which he has owned for a period of not less than ten years ending with the disposal, being shares or securities of a company which has been a trading or a farming company and his family company or a member of a trading group of which the holding company is that individual's family company during a period of not less than ten years ending with the disposal and of which he has been a working director for a period of not less than ten years during which period he has been a full time working director of the said company for a period of not less than five years:".

Disposal of work of art, etc., loaned for public display.

43.—(1) This section applies to an object in the following category, that is to say, any picture, print, book, manuscript, sculpture, piece of jewellery or work of art—

( a ) which, in the opinion of the Revenue Commissioners, 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, has a market value of not less than £25,000 at the date when it is loaned to a gallery or museum in the State, being a gallery or museum approved of by the Revenue Commissioners for the purposes of this section, and

( b ) which is the subject of or included in a display to which the public is afforded reasonable access in the gallery or museum to which it has been loaned for a period (hereafter in this section referred to as the "qualifying period") of not less than 6 years from the date it is so loaned.

(2) Where, after the end of the qualifying period, a disposal of an object to which this section applies is made by the person who had loaned it in the circumstances described in subsection (1) the disposal shall be treated for the purposes of the Capital Gains Tax Acts as being made for such consideration as to secure that neither a gain nor a loss accrues on the disposal.

(3) This section shall have effect from the 18th day of April, 1991.

Amendment of section 33 (exemption for Bord Fáilte Éireann and certain other bodies) of Finance Act, 1989 .

44.— Section 33 of the Finance Act, 1989 , is hereby amended in subsection (2):

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

"(c) Dublin City and County Regional Tourism Organisation Limited,",

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

"( e ) South-West Regional Tourism Organisation Limited,",

and

( c ) by the substitution of the following paragraphs for paragraphs (g) and (h) respectively:

"( g ) The North-West Regional Tourism Organisation Limited,

( h ) Midlands-East Regional Tourism Organisation Limited, and".

CHAPTER VI Extension of Self Assessment to Capital Gains Tax and Certain Other Matters

Amendment of section 9 interpretation Chapter II)) of Finance Act, 1988 .

45.— Section 9 (as amended by section 23 of the Finance Act, 1990 ) of the Finance Act, 1988 , is hereby amended—

( a ) in subsection (1)—

(i) by the insertion after " Income Tax Act, 1967 ", in the definition of "appeal", of or, as respects capital gains tax, an appeal under paragraph 8 of the Fourth Schedule to the Capital Gains Tax Act, 1975 ", and the said definition, as so amended, is set out in the Table to this section,

(ii) by the insertion after "profits", in paragraph (a)of the definition of "appropriate inspector", of "or chargeable gains", and the said definition, as so amended, is set out in the Table to this section,

(iii) by the insertion after "Corporation Tax Acts", in the definition of "assessment", of "or the Capital Gains Tax Acts,", and the said definition, as so amended, is set out in the Table to this section,

(iv) by the insertion after the definition of "assessment" of the following definition:

"'chargeable gain' has the same meaning as in section 11 (2) of the Capital Gains Tax Act, 1975 ;",

(v) by the insertion after "whether on his own account or on account of some other person, but", in the definition of "chargeable person", of "as respects income tax,", and the said definition, as so amended, is set out in the Table to this section,

(vi) by the substitution of the following definition for the definition of "relevant chargeable period":

"'relevant chargeable period' means—

( a ) (i) where the chargeable period is a year of assessment for income tax, the year 1988-89 and any subsequent year of assessment,

(ii) where the chargeable period is a year of assessment for capital gains tax, the year 1990-91 and any subsequent year of assessment, or

( b ) where the chargeable period is an accounting period of a company, an accounting period ending on or after the 1st day of October, 1989.",

(vii) by the insertion of the following proviso after paragraph (b) of the definition of "specified return date for the chargeable period":

"Provided that where an accounting period of a company ends on or before the date of commencement of the winding up of the company and the specified return date in respect of that accounting period would, but for this proviso, fall on a date after the date of commencement of the said winding up but not within a period of 3 months after that date, the specified return date for that accounting period of the company shall be the date which falls 3 months after the date of commencement of the winding up.

(viii) by the substitution for the definition of "tax", of the following definition:

"'tax' means income tax, corporation tax, or capital gains tax, as the case may be.",

and

( b ) by the deletion of subsection (4).

TABLE

"appeal" means an appeal under section 416 of the Income Tax Act, 1967 , or, as respects capital gains tax, an appeal under paragraph 8 of the Fourth Schedule to the Capital Gains Tax Act, 1975 ;

"appropriate inspector" means, in relation to a chargeable person—

( a ) the inspector who has last given notice in writing to the chargeable person that he is the inspector to whom the chargeable person is required to deliver a return or statement of income or profits or chargeable gains,

( b ) in the absence of such an inspector as is referred to in paragraph (a), the inspector to whom it is customary for the chargeable person to deliver such return or statement, or

( c ) in the absence of such an inspector as is referred to in paragraphs (a) and (b), the inspector of returns;

"assessment" means an assessment to tax made under the Income Tax Acts or the Corporation Tax Acts or the Capital Gains Tax Acts, as the case may be;

"chargeable person" means, as respects a chargeable period, a person who is chargeable to tax for that period, whether on his own account or on account of some other person, but, as respects income tax, does not include a person—

( a ) whose total income for the chargeable period consists solely of emoluments to which Chapter IV of Part V of the Income Tax Act, 1967 , applies, and for this purpose a person whose total income for the chargeable period, other than emoluments to which the said Chapter IV applies, is deducted in determining the amount of his tax-tree allowances for the chargeable period by virtue of Regulation 10 (1)( b ) of the Income Tax (Employments) Regulations, 1960 ( S.I. No. 28 of 1960 ), shall be deemed for that chargeable period to be a person whose total income consists solely of emoluments to which the said Chapter IV applies,

( b ) who for the chargeable period, has been exempted by an inspector from the requirements of section 10 by reason of a notice given under subsection (6) of that section, or

( c ) who is chargeable to tax for the chargeable period by reason only of the provisions of section 433 or 434 of the Income Tax Act, 1967 , or section 151 of the Corporation Tax Act, 1976 .

Amendment of section 10 (Obligation to make a return) of Finance Act, 1988 .

46.— Section 10 (as amended by section 23 of the Finance Act, 1990 ) of the Finance Act, 1988 , is hereby amended—

( a ) by the insertion in paragraph (a)of subsection (1) of "or capital gains tax" after "chargeable to income tax" in both places where it occurs, and the said paragraph (a), as so amended, is set out in the Table to this section,

( b ) by the substitution for the proviso to subsection (6) of the following proviso:

"Provided that—

(i) where, before the passing of this Act, a person has been given notice by the inspector that he need not prepare and deliver a return for or until a specified chargeable period or until the happening of any event, he shall be deemed to have been given notice to that effect under this subsection;

(ii) where a person who has been given a notice under this subsection is chargeable to capital gains tax for any chargeable period, this subsection shall not operate to remove his obligation under subsection (1) to make a return of his chargeable gains for that chargeable period.",

( c ) by the substitution of the following subsection for subsection (10):

"(10) A certificate signed by an inspector which certifies that he has examined the relevant records and that it appears from them—

( a ) that, as respects a chargeable period, a named person is a chargeable person, and

( b ) that, on or before the specified return date for the chargeable period, a return in the prescribed form was not received from that chargeable person,

shall be evidence until the contrary is proved that the person so named is a chargeable person as respects that chargeable period and that that person did not, on or before the specified return date, deliver that return and a certificate certifying as provided by this subsection and purporting to be signed by an inspector may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by such inspector.".

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( a ) in the case of a chargeable person, who is chargeable to income tax or capital gains tax for a chargeable period which is a year of assessment, all such matters and particulars as would be required to be contained in a statement delivered pursuant to a notice given to the chargeable person by the appropriate inspector under section 169 of the Income Tax Act, 1967 , if the period specified in such notice were the year of assessment which is the relevant chargeable period, and where the chargeable person is an individual who is chargeable to income tax or capital gains tax for a relevant chargeable period, in addition to such matters and particulars as aforesaid, all such matters and particulars as would be required to be contained in a return for the period delivered to the appropriate inspector pursuant to a notice given to the chargeable person by the appropriate inspector under section 172 of the said Act, or

Amendment of section 12 (notices of preliminary tax) of finance Act, 1988 .

47.— Section 12 of the Finance Act, 1988 , is hereby amended—

( a ) by the substitution for paragraph (a)of the proviso to subsection (7) of the following paragraph:

"( a ) interest shall not be payable under this subsection

(i) if it amounts to less than £10, or

(ii) to the extent that the said excess arises from relief provided for by subsection (4) of section 98 of the Corporation Tax Act, 1976 ,

and",

and

( b ) by the insertion after subsection (10) of the following subsection:

"(11) This section shall not, except for the provisions of subsection (7), apply as respects capital gains tax.".

Amendment of Section 13 (making of assessments) of Finance Act, 1988 .

48.— Section 13 of the Finance Act, 1988 , is hereby amended by the addition of the following subsection after subsection (6):

"(7) Nothing in this section shall prevent an inspector from making an assessment in accordance with the provisions of—

( a ) section 5 (3) of the Capital Gains Tax Act, 1975 , and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of the said section 5 (3), or

( b ) subparagraph (3) or (4), as appropriate, of paragraph 11 of the Fourth Schedule to the Capital Gains Tax Act, 1975 , and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of paragraph 11 (9) of the Fourth Schedule to the Capital Gains Tax Act, 1975 , or

( c ) paragraph 17 (2) or subparagraph (1) or (2) of paragraph 18, as appropriate, of the Fourth Schedule to the Capital Gains Tax Act, 1975 , and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of section 5 (2) of the Capital Gains Tax Act, 1975 .".

Amendment of section 14 (amendment of and time limit for assessments) of Finance Act, 1988 .

49.— Section 14 of the Finance Act, 1988 , is hereby amended by the insertion in subsection (5) of "or, as respects capital gains tax, chargeable gains," after "income, profits or gains", and the said subsection (5), as so amended, is set out in the Table to this section.

TABLE

(5) Section 186 of the Income Tax Act, 1967 , and section 144 (5) (a) of the Corporation Tax Act, 1976 , shall not apply in the case of a chargeable person for any relevant chargeable period and all matters which would have been included in an additional first assessment under those sections shall be included in an amendment of the first assessment or first assessments made in accordance with this section and, for this purpose, where an amount of income, profits or gains or, as respects capital gains tax, chargeable gains, was omitted from the first assessment or first assessments or the tax stated in the first assessment or first assessments was less than the tax payable by the chargeable person for that chargeable period, there shall be made such adjustments or additions (including the addition of a further first assessment) to the first assessment or first assessments as are necessary to rectify the omission or to ensure that the tax so stated is equal to the tax so payable by the chargeable person.

Amendment of section 15 (inspector's right to make enquiries and amend assessments) of Finance Act, 1988 .

50.— Section 15 of the Finance Act, 1988 , is hereby amended by the insertion in subsection (1) of "or, as respects capital gains tax, chargeable gains," after "income, profits or gains", and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

(1) For the purpose of making an assessment on a chargeable person for a relevant chargeable period or for the purpose of amending such an assessment, the inspector may accept either in whole or in art any statement or other particular contained in a return delivered by the chargeable person for that chargeable period and he may assess any amount of income, profits or gains or, as respects capital gains tax, chargeable gains, or allow any deduction, allowance or relief by reference to such statement or particular; but the making of an assessment or the amendment of an assessment by reference to any such statement or particular contained in the chargeable person's return shall not preclude the inspector from making such enquiries or taking such actions, within his powers, as he considers necessary to satisfy himself as to the accuracy or otherwise of that statement or particular and, subject to section 14 (2), shall not preclude the inspector from amending or further amending an assessment in such manner as he considers appropriate:

Provided that any such enquiries and any such actions shall not be made in the case of any chargeable person for any relevant chargeable period at any time after the expiry of the period of 6 years commencing at the end of the chargeable period in which the chargeable person has delivered a return for the relevant chargeable period unless at that time the inspector has reasonable grounds for believing that the return is insufficient due to its having been completed in a fraudulent or negligent manner.

Amendment of section 17 (appeals) of Finance Act, 1988 .

51.— Section 17 of the Finance Act, 1988 , is hereby amended by the insertion in paragraphs (b) and (c)of subsection (1) of "or, as respects capital gains tax, chargeable gains," after "income, profits or gains" in each place where it occurs, and the said paragraphs (b) and (c), as so amended, are set out in the Table to this section.

TABLE

( b ) the amount of any income, profits or gains or, as respects capital gains tax, chargeable gains, or the amount of any allowance, deduction or relief specified in an assessment or an amended assessment made on a chargeable person for a relevant chargeable period where the inspector has determined that amount by accepting without the alteration of and without departing from the statement or statements or the particular or particulars with regard to income, profits or gains or, as respects capital gains tax, chargeable gains, or allowances, deductions or relief specified in the return delivered by the chargeable person for that chargeable period, or

( c ) the amount of any income, profits or gains or, as respects capital gains tax, chargeable gains, or the amount of any allowance, deduction or relief specified in an assessment or an amended assessment made on a chargeable person for a relevant chargeable period where that amount had been agreed between the inspector and the chargeable person, or any person authorised by the chargeable person in that behalf, prior to the making of the assessment or the amendment of the assessment, as the case may be.

Amendment of section 18 (date for payment of tax) of Finance Act, 1988 .

52.— Section 18 (as amended by section 24 of the Finance Act, 1990 ) of the Finance Act, 1988 , is hereby amended—

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

"(1) Preliminary tax appropriate to a relevant chargeable period shall be due and payable—

( a ) where the chargeable period is a year of assessment for income tax, on or before the 1st day of November in that year of assessment,

( b ) where the chargeable period is a year of assessment for capital gains tax, on or before the 1st day of November next following that year of assessment, or

( c ) where the chargeable period is an accounting period of a company, within the period of 7 months from the end of the accounting period,

and references in this Chapter to the due date for the payment of an amount of preliminary tax shall, accordingly, be construed as references to the 1st day of November in the relevant year of assessment, the 1st day of November next following that year of assessment or the last day of that period of 7 months, as the case may be.",

and

( b ) in subsection (3), by the insertion of the following additional proviso after paragraph (II) of the proviso to subparagraph (ii) of paragraph (b):

"Provided also that, for the purpose of this subparagraph, where the chargeable person is chargeable to income tax for a chargeable period being the year of assessment 1991-92 or any subsequent year of assessment, the tax payable for the immediately preceding chargeable period shall be determined without regard to any relief to which the chargeable person is, or may become, entitled for that immediately preceding chargeable period under Chapter III of Part I of the Finance Act, 1984 .".

Amendment of section 21 (miscellaneous) of Finance Act, 1988 .

53.— Section 21 of the Finance Act, 1988 , is hereby amended—

( a ) by the insertion in subsection (3), after "the inspector causes to issue", of "manually or", and the said subsection (3), as so amended, is set out in the Table to this section, and

( b ) by the addition of the following subsections after subsection (6):

"(7) The provisions of this Chapter as respects due dates for payment of tax shall apply subject to the provisions of sections 37 (4) ( b ) (which provides for the postponement, in certain circumstances, of the payment of capital gains tax in the case of certain beneficiaries of a non-resident trust) and 44 (which provides for the payment of tax on certain chargeable gains by instalment, in certain circumstances) of the Capital Gains Tax Act, 1975 .

(8) With effect for the year of assessment 1990-91 and subsequent years of assessment, references in this Chapter to any provision of the Income Tax Acts shall, where appropriate for capital gains tax and unless the contrary intention appears, be construed as a reference to the said provisions as applied in relation to capital gains tax by paragraphs 2 and 3 of the Fourth Schedule to the Capital Gains Tax Act, 1975 .".

TABLE

(3) Where the inspector or any other officer of the Revenue Commissioners acting with the knowledge of the inspector causes to issue, manually or by any electronic, photographic or other process, a notice of preliminary tax bearing the name of the inspector or a notice of assessment or a notice of an amendment of an assessment bearing the name of the inspector, the said notice of preliminary tax shall, for all the purposes of the Tax Acts, be deemed to have been given by the inspector to the best of his opinion and the said assessment or amended assessment to which the notice of assessment or notice of amended assessment relates, as the case may be, shall, for those purposes, be deemed to have been 5 made by the inspector to the best of his judgement.

CHAPTER VII Urban Renewal: Temple Bar and Other Areas

Preliminary and general (Chapter VII).

54.—(1) In this Chapter—

"the Temple Bar Area" means the area described in Part II of the Second Schedule;

(2) The Second Schedule shall have effect for the purposes of supplementing this Chapter.

(3) Subject to subsection (4), the provisions of the Finance Act, 1986 , which are specified in section 55 as having effect in relation to the Temple Bar Area shall have such effect, as appropriate, subject to any necessary modifications—

( a ) as if the Temple Bar Area were an area described in an order made by the Minister for Finance under section 27 of the Finance Act, 1987 ,

( b ) as if the reference in paragraph (a)(ii) of subsection (1) of the said section 27 to the "31st day of May, 1991," were a reference to the "5th day of April, 1996,", and

( c ) as if the order referred to in paragraph ( a ) directed that in sections 42 , 44 and 45 of the Finance Act, 1986 , the definition of "qualifying period" is to be construed as a reference to the period from the 6th day of April, 1991, to the 5th day of April, 1996, in relation to the Temple Bar Area.

(4) The provisions which are specified in this Chapter as having effect in relation to capital, or other, expenditure incurred or rent payable in relation to any building or premises however described in this Chapter in the Temple Bar Area shall have such effect only if the relevant building or premises in relation to which the said capital, or other, expenditure was incurred or rent is so payable, is approved for the purposes of this Chapter by the company known as Temple Bar Renewal Limited.

Temple Bar relief.

55.—(1)( a ) In this subsection—

"multi-storey car-park" means a building or structure consisting of three or more storeys wholly or mainly in use for the purpose of providing, for members of the public generally without preference for any particular class of person, upon payment of an appropriate charge, parking for mechanically propelled vehicles;

"qualifying building" means a dwelling-house or other building or structure—

(i) which is constructed in the Temple Bar Area in the period from the 6th day of April, 1991, to the 5th day of April, 1996, and

(ii) which would be qualifying premises for the purposes of section 42 , 44 or 45 of the Finance Act, 1986 , as the case may be, in the circumstances described in section 54 (3), if paragraph (a)of the definition of "qualifying premises" in subsection (1) of the said section 42 had not been enacted.

( b ) As respects any qualifying building, the following provisions shall have effect, as appropriate, in the following manner, that is to say—

(i) section 42 of the Finance Act, 1986 , other than paragraph (a)of the definition of "qualifying premises" in subsection (1) of that section, shall have effect in its entirety as respects capital expenditure incurred on the construction of any such building and on the basis that subsection (4) of that section has effect as respects any qualifying building to which that section applies other than a multi-storey car-park;

(ii) section 44 of the Finance Act, 1986 , shall have effect as respects any qualifying expenditure (being qualifying expenditure for the purposes of that section) incurred on the construction but not on the refurbishment of any such building;

(iii) section 45 of the Finance Act, 1986 , shall have effect as respects rent payable for any such building.

( 2 ) ( a ) In this subsection—

"qualifying building" means an existing dwelling-house or other building or structure in the Temple Bar Area as on the 1st day of January, 1991, which would be qualifying premises for the purposes of section 42 , 44 or 45 of the Finance Act, 1986 , as the case may be, in the circumstances described in section 54 (3), if paragraph (a)of the definition of "qualifying premises" in subsection (1) of the said section 42 had not been enacted;

"refurbishment" means any work of construction, reconstruction, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, carried out in the course of repair or restoration, or maintenance in the nature of repair or restoration, of a building, which is consistent with the original character or fabric of the building.

( b ) As respects any qualifying building, the following provisions shall have effect, as appropriate, in the following manner, that is to say—

(i) section 42 of the Finance Act, 1986 , other than paragraph (a)of the definition of "qualifying premises" in subsection (1) and subsection (4), shall have effect as respects capital expenditure incurred on the refurbishment of any such building;

(ii) section 44 of the Finance Act, 1986 , shall have effect as respects qualifying expenditure (being qualifying expenditure for the purposes of that section) incurred on the refurbishment of any such building—

(I) as if the definition of "refurbishment" in this subsection were substituted for the definition of "refurbishment" provided for in the said section 44, and

(II) as if the reference in subsection (2) of the said section 44 to "5 per cent." were a reference to "10 per cent.",

and

(iii) section 45 of the Finance Act, 1986 , shall have effect as respects rent payable in respect of any such building:

Provided that capital expenditure for the purposes of subparagraph (i) and expenditure for the purposes of subparagraph (ii) of this paragraph shall be deemed to include—

(I) any expenditure incurred on the purchase of the qualifying building which is the subject of the capital expenditure referred to in the said subparagraph (i) or the expenditure on refurbishment referred to in the said subparagraph (ii), as the case may be, other than expenditure incurred on the acquisition of, or of rights in or over, any land, or

(II) an amount which is equal to the amount of the value of the said building as on the 1st day of January, 1991, other than any amount of such value as is attributable to, or to rights in or over, any land,

whichever is the lesser, if the expenditure specified at clause (I) of this proviso or the amount specified at clause (II) of this proviso, as the case may be, is not greater than the amount of the capital expenditure referred to in the said subparagraph (i) or the amount of expenditure on refurbishment referred to in the said subparagraph (ii), as the case may be.

(3) Notwithstanding any other provision of the Tax Acts, where part of a qualifying building, within the meaning of subsection (1) (a) or (2) (a), is used for commercial purposes and part is used for residential purposes, the total amount of the expenditure incurred on the construction or refurbishment of the building shall be apportioned as between the respective parts of the building in such manner as is just and reasonable for the purpose of giving effect to the provisions of this section.

Application of section 23 (deduction for certain expenditure on construction of rented residential accommodation) of Finance Act, 1981 .

56.—(1) As respects relevant expenditure to which this section applies, section 23 of the Finance Act, 1981 , shall have effect—

( a ) as if for the definition of "qualifying period" (as provided for by section 27 of the Finance Act, 1988 ) in subsection (1) ( a ), there were substituted—

(i) where relevant expenditure is incurred in the designated area known as the Custom House Docks Area (as provided for by section 41 of the Finance Act, 1986 ), the following definition:

"'qualifying period' means the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of section 41 of the Finance Act, 1986 );",

(ii) where relevant expenditure is incurred in any other designated area (as so provided for and subject to section 27 of the Finance Act, 1987 ), the following definition:

"'qualifying period' means the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993;",

(iii) where relevant expenditure is incurred in the area known as the Temple Bar Area, the following definition:

"'qualifying period' means the period commencing on the 30th day of January, 1991, and ending on the 5th day of April, 1996;", or

(iv) where relevant expenditure is incurred in any other area, the following definition:

"'qualifying period' means the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992;",

( b ) as if in the definition of "qualifying premises" in the said subsection (1) ( a ) "90 square metres" were substituted for "75 square metres", and

( c ) where relevant expenditure is incurred in any area to which subparagraph (i), (ii) or (iii) of paragraph ( a ) of subsection (1) relates, as if section 30 of the Finance Act, 1983 , were deleted.

(2) In this section "relevant expenditure" means expenditure on the construction of a qualifying premises (being a qualifying premises within the meaning of subsection (1) ( a ) of section 23 of the Finance Act, 1981 ) incurred in the qualifying period (being the qualifying period within the meaning of subsection (1) ( a ) of the said section 23, subject to the provisions of subsection (1) ( a ) of this section):

Provided that expenditure to which section 24 of the Finance Act, 1981 , applies which is incurred in the Temple Bar Area shall be construed as expenditure on refurbishment (being refurbishment within the meaning of paragraph ( a ) of section 55 (2)) in the course of the conversion into two or more houses of a building which, prior to the conversion, had not been in use as a dwelling or had been in use as a single dwelling.

Application of section 21 (rented residential accommodation: deduction for expenditure on refurbishment) of Finance Act, 1985 .

57.—(1) This section applies to—

( a ) expenditure incurred on refurbishment (being refurbishment within the meaning of paragraph (a) of section 55 (2)) of a specified building (being a specified building within the meaning of subsection (1) ( a ) of section 21 of the Finance Act, 1985 ) in the Temple Bar Area;

( b ) relevant expenditure within the meaning of subsection (1) ( a ) of section 21 of the Finance Act, 1985 , incurred—

(i) in the designated area known as the Custom House Docks Area (as provided for by section 41 of the Finance Act, 1986 ) in the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of the said section 41),

(ii) in any other designated area (as so provided for and subject to section 27 of the Finance Act, 1987 ) in the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993, and

(iii) in any other area, in the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992.

(2) As respects expenditure to which subsection (1) (a) applies, section 21 of the Finance Act, 1985 , shall be deemed to have effect—

( a ) as if for the definition of "refurbishment" in paragraph (1) (a) of the said section 21, there were substituted the definition of "refurbishment" in paragraph ( a ) of section 55(2),

( b ) as if for the definition of "qualifying period" (as provided for by section 28 of the Finance Act, 1988 ) in subsection (2) (a) (iii) there were substituted the following definition:

"'qualifying period' means the period commencing on the 6th day of April, 1991, and ending on the 5th day of April, 1996;",

and

( c ) as if the proviso to subsection (2) of section 29, and subsections (3) and (4) of that section, of the Finance Act, 1983 , were deleted.

(3) As respects relevant expenditure to which subsection (1) (b) applies, section 21 of the Finance Act, 1985 , shall have effect—

( a ) as if for the definition of "qualifying period" (as provided for by section 28 of the Finance Act, 1988 ) in subsection (2) (a) (iii) there were substituted—

(i) in the case of relevant expenditure within the meaning of subparagraph (i) of the said subsection (1) (b), the following definition:

(ii) in the case of relevant expenditure within the meaning of subparagraph (ii) of the said subsection (1) (b), the following definition:

"'qualifying period' means the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993;",

and

(iii) in the case of relevant expenditure within the meaning of subparagraph (iii) of the said subsection (1) (b), the following definition:

"'qualifying period' means the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992;",

( b ) as if the proviso to section 29 (2) of the Finance Act, 1983 , were deleted, and

( c ) in the case of relevant expenditure within the meaning of subparagraphs (i) and (ii) of the said subsection (1) (b), as if subsections (3) and (4) of section 29 of the Finance Act, 1983 , were deleted.

Application of section 22 (extension of application of relief for conversion of certain buildings) of Finance Act, 1985 .

58.—(1) This section applies to—

( a ) expenditure incurred on refurbishment (being refurbishment within the meaning of paragraph (a) of section 55 (2) in the course of conversion into a house of a building in the Temple Bar Area not previously in use as a dwelling;

( b ) expenditure within the meaning of section 22 of the Finance Act, 1985 , incurred—

(ii) in any other designated area (as so provided and subject to section 27 of the Finance Act, 1987 ) in the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993, and

(iii) in any other area in the period commencing on the 1 st day of April, 1991, and ending on the 31st day of March, 1992.

(2) As respects expenditure to which subsection (1) (a) applies, section 22 of the Finance Act, 1985 , shall be deemed to have effect, subject to any necessary modifications—

( a ) in subsections (1) and (2) of the said section 22, as if for "commencing on the 27th day of January, 1988, and ending on the 31st day of March, 1991," (as provided for by section 29 of the Finance Act, 1988 ) there were substituted "commencing on the 6th day of April, 1991, and ending on the 5th day of April, 1996,",

( b ) as if subsection (2) of the said section 22 were deleted,

( c ) in subsection (4) of the said section 22, as if for the definition of "qualifying period" (as so provided for) there were substituted the following definition:

"'qualifying period' means the period commencing on the 6th day of April, 1991, and ending on the 5th day of April, 1996;",

( d ) as if the proviso to section 29 (2) and section 30 of the Finance Act, 1983 , were deleted, and

( e ) as if the said expenditure were expenditure within the meaning of subsection (1) of section 24 of the Finance Act, 1981 .

( 3 ) ( a ) As respects expenditure to which subsection (1) (b) (i) applies, section 22 of the Finance Act, 1985 , shall have effect—

(i) in subsections (1) and (2) of the said section 22, as if for "commencing on the 27th day of January, 1988, and ending on the 31st day of March, 1991," (as provided for by section 29 of the Finance Act, 1988 ) there were substituted "commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of section 41 of the Finance Act, 1986 ),",

(ii) in subsection (4) of the said section 22, as if for the definition of "qualifying period" (as so provided for) there were substituted the following definition:

and

(iii) as if the proviso to section 29 (2) and section 30 of the Finance Act, 1983 , were deleted;

( b ) as respects expenditure to which subsection (1) (b) (ii) applies, section 22 of the Finance Act, 1985 , shall have effect—

(ii) in subsection (4) of the said section 22, as if for the definition of "qualifying period" (as so provided for) there were substituted the following definition:

"'qualifying period' means the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993;",

and

(iii) as if the proviso to section 29 (2) and section 30 of the Finance Act, 1983 , were deleted;

( c ) as respects expenditure to which subsection (1) (b) (iii) applies, section 22 of the Finance Act, 1985 , shall have effect—

(i) in subsections (1) and (2) of the said section 22, and section 30 (2) of the Finance Act, 1983 , as if for "commencing on the 27th day of January, 1988, and ending on the 31st day of March, 1991," (as provided for by section 29 of the Finance Act, 1988 ) there were substituted "commencing on the `st day of April, 1991, and ending on the 31st day of March, 1992,",

(ii) in subsection (4) of the said section 22, as if for the definition of "qualifying period" (as so provided for) there were substituted the following definition:

"qualifying period' means the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992;",

and

(iii) as if the proviso to section 29 (2) of the Finance Act, 1983 , were deleted.

CHAPTER VIII Taxation of Acquisition by a Company of its Own Shares

Interpretation (Chapter VIII).

59.—(1) In this Chapter—

"the Act of 1975" means the Capital Gains Tax Act, 1975 ;

"the Act of 1976" means the Corporation Tax Act, 1976 ;

"chargeable period" means an accounting period of a company or a year of assessment;

"control" has the meaning given by section 158 of the Act of 1976;

"holding company" means a company whose business, disregarding any trade carried on by it, consists wholly or mainly of the holding of shares or securities of one or more companies which are its 51 per cent. subsidiaries;

"inspector", in relation to any matter, means an inspector of taxes appointed under section 161 of the Income Tax Act, 1967 , and includes such other officer as the Revenue Commissioners shall appoint in that behalf;

"personal representatives" has the meaning assigned to it by section 450 (2) ( a ) of the Income Tax Act, 1967 ;

"quoted company" means a company whose shares, or any class of whose shares, are listed in the official list of a stock exchange or dealt in on an unlisted securities market;

"relevant day" means the day on which Part XI of the Companies Act, 1990 , comes into operation by order of the Minister for Industry and Commerce under section 2 of that Act;

"shares" includes stock;

"trade" does not include dealing in shares, securities, land, futures or traded options and "trading activities" shall be construed accordingly;

"trading company" means a company whose business consists wholly or mainly of the carrying on of a trade or trades;

"trading group" means a group the business of whose members, taken together, consists wholly or mainly of the carrying on of a trade or trades, and for this purpose "group" means a company which has one or more 51 per cent. subsidiaries together with those subsidiaries.

(2) References in this Chapter to the owner of shares are references to the beneficial owner except where the shares are held on trusts, other than bare trusts, or are comprised in the estate of a deceased person, and in such a case are references to the trustees or, as the case may be, to the deceased's personal representatives.

(3) References in this Chapter to a payment made by a company include references to anything else that is, or would but for section 61 be, a distribution.

(4) References in this Chapter to a company being unquoted shall be treated as references to a company which is neither a quoted company nor a 51 per cent. subsidiary of a quoted company.

Taxation of dealer's receipts on purchase of shares by issuing company or by its subsidiary.

60.—(1) Where on or after the relevant day—

( a ) a company purchases its own shares from a dealer, or

( b ) a company, which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963 ) of another company, purchases the other company's shares from a dealer,

the purchase price shall be taken into account in computing the profits of the dealer chargeable to tax under Case I or II of Schedule D, and accordingly—

(i) tax shall not be chargeable under Schedule F in respect of any distribution represented by any part of the price,

(ii) the dealer shall not be entitled in respect of the distribution to a tax credit under section 88 of the Act of 1976, and

(iii) sections 2, 5 and 83 (5) of the Act of 1976 shall not apply to the distribution.

(2) For the purposes of subsection (1) a person is a dealer in relation to shares of a company if the price received on their sale by him otherwise than to the company, or to a company which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963 ) of the company, would be taken into account in computing his profits chargeable to tax under Case I or II of Schedule D.

(3) Subject to subsection (4), in subsection (1)

( a ) the reference to the purchase of shares includes a reference to the redemption or repayment of shares and the purchase of rights to acquire shares, and

( b ) the reference to the purchase price includes a reference to any sum payable on redemption or repayment.

(4) Subsection (1) shall not apply in relation to—

( a ) the redemption of fixed-rate preference shares, or

( b ) the redemption, on binding terms settled before the 18th day of April, 1991, of other preference shares issued before that date,

if in either case the shares were issued to and continuously held by the person from whom they are redeemed.

(5) In this section—

"fixed-rate preference shares" means shares which—

( a ) were issued wholly for new consideration, and

( b ) do not carry any right either to conversion into shares or securities of any other description or to the acquisition of any additional shares or securities, and

( c ) do not carry any right to dividends other than dividends which are of a fixed amount or at a fixed rate per cent. of the nominal value of the shares, and

( d ) 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;

"new consideration" has the meaning given by section 87 of the Act of 1976.

Purchase of unquoted shares by issuing company or its subsidiary.

61.—(1) Notwithstanding any provision of Part IX of the Act of 1976, references in the Tax Acts to distributions of a company, other than any such references in sections 101 and 162 of the Act of 1976, shall be construed so as not to include references to a payment made on or after the relevant day by a company on the redemption, repayment or purchase of its own shares if the company is an unquoted trading company or the unquoted holding company of a trading group and either—

( a ) (i) the redemption, repayment or purchase—

(I) is made wholly or mainly for the purpose of benefiting a trade carried on by the company or by any of its 51 per cent. subsidiaries, and

(II) does not form part of a scheme or arrangement the main purpose or one of the main purposes of which is to enable the owner of the shares to participate in the profits of the company or of any of its 51 per cent. subsidiaries without receiving a dividend,

and

(ii) the conditions specified in sections 62 to 66, so far as applicable, are satisfied in relation to the owner of the shares, or

( b ) the person to whom the payment is made—

(i) applies the whole, or substantially the whole, of the payment (apart from any sum applied in discharging his liability to capital gains tax, if any, in respect of the redemption, repayment or purchase) to discharging,

(I) within 4 months of the valuation date of a taxable inheritance of the company's shares taken by him, a liability to inheritance tax in respect of that inheritance, or

(II) within one week of the day on which the payment is made, a debt incurred by him for the purpose of discharging the said liability to inheritance tax,

and

(ii) could not, without undue hardship, have otherwise discharged that liability to inheritance tax and, where appropriate, the debt so incurred.

(2) Where subsection (1) would apply to a payment, made on or after the relevant day by a company which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963 ) of another company on the acquisition of shares of the other company, if, for all the purposes of the Tax Acts other than this subsection—

( a ) the payment were to be treated as a payment by the other company on the purchase of its own shares, and

( b ) the acquisition by the subsidiary of the shares were to be treated as a purchase by the other company of its own shares,

then, notwithstanding any provision of Part IX of the Act of 1976, references in the Tax Acts to distributions of a company, other than references in sections 101 and 162 of the Act of 1976, shall be construed so as not to include references to the payment made by the subsidiary.

(3) In subsection (1) (b) (i) "valuation date" has the meaning assigned to it by section 21 of the Capital Acquisitions Tax Act, 1976 .

Conditions as to residence and period of ownership.

62.—(1) In this section and sections 63 to 66—

"the purchase" means the redemption, repayment or purchase referred to in section 61 (1) (a);

"the vendor" means the owner of the shares immediately before the purchase, so defined, is made.

(2) The vendor shall be resident and ordinarily resident in the State for the chargeable period in which the purchase is made and, if the shares are held through a nominee, the nominee shall also be so resident and ordinarily resident.

(3) The residence and ordinary residence of trustees shall be determined for the purposes of this section as they are determined under section 15 of the Act of 1975 for the purposes of that Act.

(4) The residence and ordinary residence of personal representatives shall be taken for the purposes of this section to be the same as the residence and ordinary residence of the deceased immediately before his death.

(5) The references in this section to a person's ordinary residence shall be disregarded in the case of a company.

(6) The shares shall have been owned by the vendor throughout the period of 5 years ending with the date of the purchase.

(7) If at any time during that period the shares were transferred to the vendor by a person who was then his spouse living with him then, unless that person is alive at the date of the purchase but is no longer the vendor's spouse living with him, any period during which the shares were owned by that person shall be treated for the purposes of subsection (6) as a period of ownership by the vendor.

(8) Where the vendor became entitled to the shares under the will or on the intestacy of a previous owner or is the personal representative of a previous owner—

( a ) any period during which the shares were owned by the previous owner or his personal representatives shall be treated for the purposes of subsection (6) as a period of ownership by the vendor, and

( b ) that subsection shall have effect as if it referred to 3 years instead of 5 years.

(9) In determining whether the condition in subsection (6) is satisfied in a case where the vendor acquired shares of the same class at different times—

( a ) shares acquired earlier shall be taken into account before shares acquired later, and

( b ) any previous disposal by him of shares of that class shall be assumed to be a disposal of shares acquired later rather than of shares acquired earlier.

(10) If for the purposes of capital gains tax the time when a person acquired shares would be determined under any provision of Schedule 2 to the Act of 1975, then unless the person is to be treated under subparagraph (3) of paragraph 2 of the said Schedule as giving or becoming liable to give any consideration, other than the old holding, for his acquisition of those shares it shall be determined in the same way for the purposes of this section.

Reduction of vendor's interest as shareholder.

63.—(1) If immediately after the purchase the vendor owns shares in the company, then, subject to section 66, the vendor's interest as a shareholder must be substantially reduced.

(2) If immediately after the purchase any associate of the vendor owns shares in the company then, subject to section 66, the combined interests as shareholders of the vendor and his associates must be substantially reduced.

(3) The question whether the combined interests as shareholders of the vendor and his associates are substantially reduced shall be determined in the same way as is (under the following subsections of this section) the question whether a vendor's interest as a shareholder is substantially reduced, except that the vendor shall be assumed to have the interests of his associates as well as his own.

(4) Subject to subsection (5), the vendor's interest as a shareholder shall be taken to be substantially reduced if and only if the total nominal value of the shares owned by him immediately after the purchase, expressed as a fraction of the issued share capital of the company at that time, does not exceed 75 per cent. of the corresponding fraction immediately before the purchase.

(5) The vendor's interest as a shareholder shall not be taken to be substantially reduced where—

( a ) he would, if the company distributed all its profits available for the distribution immediately after the purchase, be entitled to a share of those profits, and

( b ) that share, expressed as a fraction of the total of those profits, exceeds 75 per cent. of the corresponding fraction immediately before the purchase.

(6) In determining for the purposes of subsection (5) the division of profits among the persons entitled to them, a person entitled to periodic distributions calculated by reference to fixed rates or amounts shall be regarded as entitled to a distribution of the amount or maximum amount to which he would be entitled for a year.

(7) In subsection (5) "profits available for distribution" has the same meaning as it has for the purposes of Part IV of the Companies (Amendment) Act, 1983 , except that for the purposes of that subsection the amount of the profits available for distribution (whether immediately before or immediately after the purchase) shall be treated as increased—

( a ) in the case of every company, by £100, and

( b ) in the case of a company from which any person is entitled to periodic distributions of the kind mentioned in subsection (6), by a further amount equal to that required to make the distribution to which he is entitled in accordance with that subsection,

and where the aggregate of the sums payable by the company on the purchase and on any contemporaneous redemption, repayment or purchase of other shares of the company exceeds the amount of the profits available for distribution immediately before the purchase, that amount shall be treated as further increased by an amount equal to the excess.

(8) References in this section to entitlement are, except in the case of trustees and personal representatives, references to beneficial entitlement.

Conditions applicable where purchasing company is member of group.

64.—(1) Subject to section 66, where the company making the purchase is immediately before the purchase a member of a group and immediately after the purchase—

( a ) the vendor owns shares in one or more other members of the group, whether or not he then owns shares in the company making the purchase, or

( b ) the vendor owns shares in the company making the purchase and immediately before the purchase he owned shares in one or more other members of the group,

the vendor's interest as a shareholder in the group shall be substantially reduced.

(2) Subject to subsection (4), in subsections (5) to (7) "relevant company" means the company making the purchase and any other company—

( a ) in which the vendor owns shares, and

( b ) which is a member of the same group as the company making the purchase,

immediately before or immediately after the purchase.

(3) Subject to section 66, where the company making the purchase is immediately before the purchase a member of a group, and at that time an associate of the vendor owns shares in any member of the group, the combined interests as shareholders in the group of the vendor and his associates shall be substantially reduced.

(4) The question whether the combined interests as shareholders in the group of the vendor and his associates are substantially reduced shall be determined in the same way as is (under the following subsections of this section) the question whether a vendor's interest as a shareholder in a group is substantially reduced, except that the vendor shall be assumed to have the interests of his associates as well as his own, and references in subsections (5) to (7) to a relevant company shall be construed accordingly.

(5) The vendor's interest as a shareholder in the group shall be ascertained by—

( a ) expressing the total nominal value of the shares owned by him in each relevant company as a fraction of the issued share capital of the company,

( b ) adding together the fractions so obtained, and

( c ) dividing the result by the number of relevant companies (including any in which he owns no shares).

(6) Subject to subsection (7), the vendor's interest as a shareholder in the group shall be taken to be substantially reduced if and only if it does not exceed 75 per cent. of the corresponding interest immediately before the purchase.

(7) The vendor's interest as a shareholder in the group shall not be taken to be substantially reduced if—

( a ) he would, if every member of the group distributed all its profits available for distribution immediately after the purchase (including any profits received by it on a distribution by another member), be entitled to a share of the profits of one or more of them, and

( b ) that share, or the aggregate of those shares, expressed as a fraction of the aggregate of the profits available for distribution of every member of the group which is—

(i) a relevant company, or

(ii) a 51 per cent. subsidiary of a relevant company,

exceeds 75 per cent. of the corresponding fraction immediately before the purchase.

(8) Subsections (6) and (7) of section 63 shall apply for the purposes of subsection (7) as they apply for the purposes of subsection (5) of that section.

(9) Subject to subsections (10) to (12), in this section "group" means a company which has one or more 51 per cent. subsidiaries, but is not itself a 51 per cent. subsidiary of any other company, together with those subsidiaries.

(10) Where the whole or a significant part of the business carried on by an unquoted company (hereafter in this section referred to as "the successor company") was previously carried on by—

( a ) the company making the purchase, or

( b ) a company which is, apart from this subsection, a member of a group to which the company making the purchase belongs,

the successor company and any company of which it is a 51 per cent. subsidiary shall be treated as being a member of the same group as the company making the purchase, whether or not, apart from this subsection, the company making the purchase is a member of a group.

(11) Subsection (10) shall not apply if the successor company first carried on the business there referred to more than three years before the time of the purchase.

(12) For the purposes of this section a company which has ceased to be a 51 per cent. subsidiary of another company before the time of the purchase shall be treated as continuing to be such a subsidiary if at that time there exist arrangements under which it could again become such a subsidiary.

Additional conditions to those otherwise provided for.

65.—(1) Subject to section 66 the vendor shall not immediately after the purchase be connected with the company making the purchase or with any company which is a member of the same group as that company.

(2) In subsection (1) "group" has the same meaning as it has for the purposes of section 64.

(3) Subject to section 66, the purchase shall not be part of a scheme or arrangement which is designed or likely to result in the vendor or any associate of his having interests in any company such that, if he had those interests immediately after the purchase, any of the conditions in sections 63 and 64 and subsection (1) could not be satisfied.

(4) A transaction occurring within one year after the purchase shall be deemed for the purposes of subsection (3) to be part of a scheme or arrangement of which the purchase is also part.

Relaxation of conditions in certain cases.

66.—Where—

( a ) any of the conditions in sections 63 to 65 which are applicable are not satisfied in relation to the vendor, but

( b ) the vendor proposed or agreed to the purchase in order to produce the result that the condition in section 63 (2) or 64 (3), which could not otherwise be satisfied in respect of the redemption, repayment or purchase of shares owned by a person of whom he is an associate, could be satisfied in that respect,

then, if that result is produced by virtue of the purchase, section 61 (1) (a) shall have effect, as respects so much of the purchase as was necessary to produce the said result, as if the conditions in sections 63 to 6565 were satisfied in relation to the vendor.

Returns.

67.—(1) ( a ) Where a company makes a payment which it treats as one to which subsection (1) or (2) of section 61 applies, it shall make a return in a prescribed form to the appropriate inspector of the payment. the circumstances by reason of which that subsection is regarded as applying to it and such further particulars as may be required by the prescribed form.

( b ) In this subsection "appropriate inspector" and "prescribed form" shall have the meanings which are assigned to them, respectively, in Chapter II of the Finance Act, 1988 .

(2) A company shall make a return under this section—

( a ) within 9 months from the end of the accounting period in which it makes the payment, or

( b ) if at any time after the payment is made the inspector by notice in writing requests such a form, within the time, which shall not be less than 30 days, limited by such notice.

(3) The provisions of subsection (8) of section 143 of the Act of 1976 shall, with any necessary modifications. apply in relation to a return under the provisions of this section, as they apply in relation to a return under the provisions of the said section 143.

Information.

68.—(1) Where a company treats a payment made by it as one to which subsection (1) (a) or (2) of section 61 applies, any person connected with the company who knows of any such scheme or arrangement affecting the payment as is mentioned in section 65 (3) shall, within 60 days after he first knows of both the payment and the scheme or arrangement, give a notice to the inspector containing particulars of the scheme or arrangement.

(2) Where the inspector has reason to believe that a payment treated by the company making it as one to which subsection (1) (a) or (2) of section 61 applies may form part of a scheme or arrangement of the kind referred to therein or in section 65 (3), he may by notice require the company or any person who is connected with the company to furnish him within such time, not being less than 60 days, as may be specified in the notice with—

( a ) a declaration in writing stating whether or not, according to information which the company or that person has or can reasonably obtain, any such scheme or arrangement exists or has existed, and

( b ) such other information as the inspector may reasonably require for the purposes of the provision in question and the company or that person has or can reasonably obtain.

(3) The recipient of a payment treated by the company making it as one to which subsection (1) (a) or (2) of section 61 applies, and any person on whose behalf such a payment is received, shall if so required by the inspector state whether the payment received by him or on his behalf is received on behalf of any person other than himself and, if so, the name and address of that person.

(4) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column 2 of "Finance Act, 1991 , section 68".

Advance corporation tax.

69.—Chapter VII of Part I of the Finance Act, 1983 , is hereby amended, as respects distributions made on or after the relevant day,

( a ) by the insertion after subsection (8) of section 45 of the following subsection:

"(9) References in this section to dividends shall be construed as including references to distributions on the redemption, repayment or purchase by a company of its own shares or on the acquisition of those shares by another company which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963 ) of the company, and references to the payment of dividends shall be construed accordingly.".

and

( b ) by the addition to subsection (1) of section 47 of the following paragraph after paragraph (b):

"( c ) For the purposes of paragraph (a)the reference to a dividend paid by a company shall be construed as including a reference to a distribution made by the company on the redemption, repayment or purchase of its own shares or by another company which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963 ) of the company on the acquisition of those shares.".

Treasury shares.

70.—(1) For all the purposes of the Tax Acts and the Capital Gains Tax Acts—

( a ) any shares which are—

(i) held by the company as treasury shares, and

(ii) not cancelled by the company,

shall be deemed to be cancelled immediately upon their acquisition by the company,

( b ) a deemed or actual cancellation of shares shall be treated as giving rise to neither a chargeable gain nor an allowable loss, and

( c ) a re-issue by the company of treasury shares shall be treated as an issue of new shares by it.

(2) For the purposes of this section a reference to treasury shares shall be a reference to treasury shares within the meaning of section 209 of the Companies Act, 1990 .

Associated persons.

71.—(1) Any question whether a person is an associate of another in relation to a company shall be determined for the purposes of sections 61 to 68 and section 72 in accordance with the following provisions, that is to say:

( a ) a husband and wife living together shall be associates of one another, a person under the age of 18 shall be an associate of his parents, and his parents are his associates;

( b ) a person who has control of a company shall be an associate of the company and the company shall be his associate;

( c ) where a person who has control of one company has control of another company, the second company shall be an associate of the first;

( d ) where shares in a company are held by trustees (other than bare trustees) then in relation to that company, but subject to subsection (2), the trustees shall be associates of—

(i) any person who directly or indirectly provided property to the trustees or has made a reciprocal arrangement for another to do so,

(ii) any person who is, by virtue of paragraph (a), an associate of a person within subparagraph (i), and

(iii) any person who is or may become beneficially entitled to a material interest in the shares,

and any such person shall be an associate of the trustees;

( e ) where shares in a company are comprised in the estate of a deceased person, then in relation to that company the deceased's personal representatives shall be associates of any person who is or may become beneficially entitled to a material interest in the shares, and any such person shall be an associate of the personal representatives;

( f ) where one person is accustomed to act on the directions of another in relation to the affairs of a company, then in relation to that company, the two persons shall be associates of one another.

(2) Subsection (1) (d) shall not apply to shares held on trusts which—

( a ) relate exclusively to an exempt approved scheme as defined in Chapter II of Part I of the Finance Act, 1972 , or

( b ) are exclusively for the benefit of the employees, or the employees and directors, of the company referred to in the said subsection (1) (d) or of companies in a group to which that company belongs, or their dependants, and are not wholly or mainly for the benefit of directors or their relatives,

and for the purposes of this subsection "group" means a company which has one or more 51 per cent. subsidiaries, together with those subsidiaries.

(3) For the purposes of paragraphs (d) and (e) of subsection (1), a person's interest is a material interest if its value exceeds 5 per cent. of the value of all the property held on the trusts or, as the case may be, comprised in the estate concerned, excluding any property in which he is not and cannot become beneficially entitled to an interest.

Connected persons.

72.—(1) Any question whether a person is connected with a company shall, notwithstanding section 33 of the Act of 1975 and section 157 of the Act of 1976, be determined for the purposes of sections 61 to 68 in accordance with the following provisions, that is to say:

( a ) a person shall, subject to subsection (2), be connected with a company if he directly or indirectly possesses or is entitled to acquire more than 30 per cent. of—

(i) the issued ordinary share capital of the company, or

(ii) the loan capital and issued share capital of the company, or

(iii) the voting power in the company;

( b ) a person shall be connected with a company if he directly or indirectly possesses or is entitled to acquire such rights as would, in the event of the winding up of the company or in any other circumstances, entitle him to receive more than 30 per cent. of the assets of the company which would then be available for distribution to equity holders of the company, and for the purposes of this paragraph—

(i) the persons who are equity holders of the company, and

(ii) the percentage of the assets of the company to which a person would be entitled,

shall be determined in accordance with sections 109 and 111 of the Act of 1976, but construing references in the said section 111 to the first company as references to an equity holder and references to a winding up as including references to other circumstances in which assets of the company are available for distribution to its equity holders;

( c ) a person shall be connected with a company if he has control of it.

(2) Where a person—

( a ) acquired or became entitled to acquire loan capital of a company in the ordinary course of a business carried on by him, being a business which includes the lending of money, and

( b ) takes no part in the management or conduct of the company, his interest in that loan capital shall be disregarded for the purposes of subsection (1) (a).

(3) References in this section to the loan capital of a company are references to any debt incurred by the company—

( a ) for any money borrowed or capital assets acquired by the company, or

( b ) for any right to receive income created in favour of the company, or

( c ) for consideration the value of which to the company was, at the time when the debt was incurred, substantially less than the amount of the debt, including any premium thereon.

(4) For the purposes of this section a person shall be treated as entitled to acquire anything which he is entitled to acquire at a future date or will at a future date be entitled to acquire.

(5) For the purposes of this section a person shall be assumed to have the rights or powers of his associates as well as his own.

PART II CUSTOMS AND EXCISE

Tobacco products.

73.—(1) In this section and in the Third 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 Eighth Schedule to the Finance Act, 1990 , be charged, levied and paid, as on and from—

( a ) the 31st day of January, 1991, at the several rates specified in Part 1 of the Third Schedule, and

( b ) the 1st day of March, 1991, at the several rates specified in Part II of the Third Schedule.

Hydrocarbons.

74.—(1) The duty of excise on gaseous hydrocarbons in liquid form imposed by section 41 (1) of the Finance Act, 1976 , shall be charged, levied and paid, as on and from the 1st day of March, 1991, at the rate of £0.313 per gallon in lieu of the rate specified in section 89 (2) of the Finance Act, 1990 .

( 2 ) ( a ) In this subsection—

"duty" means the duty of excise imposed on gaseous hydrocarbons in liquid form by section 41 (1) of the Finance Act, 1976 ;

"glasshouse" means any building or structure made of glass or other transparent or translucent material, which is used for growing horticultural produce and is artificially heated from a heating unit permanently installed solely for the purpose of heating the building or structure for such use;

"horticultural produce" means fruit, vegetables (including fungi) of a kind grown for human consumption, flowers, pot plants, herbs, seeds, bulbs, trees and shrubs, and "horticultural producer" shall be construed accordingly.

( b ) This subsection shall apply to gaseous hydrocarbons in liquid form delivered to a horticultural producer on or after the 1st day of July, 1991.

( c ) Where a horticultural producer shows, to the satisfaction of the Revenue Commissioners, that gaseous hydrocarbons in liquid form to which this subsection applies and on which duty has been paid were used by him either—

(i) in the production of horticultural produce in one or more than one glasshouse of a total area of not less than a quarter of an acre, or

(ii) in the cultivation of mushrooms in one or more than one building or structure of a total area of not less than 3,000 square feet,

the Revenue Commissioners shall repay the duty so paid on the quantity of gaseous hydrocarbons in liquid form so used, less the sum of any rebate of duty allowed and an amount calculated at the rate of £0.02 per gallon.

( d ) Except where the Revenue Commissioners otherwise allow, an application by a horticultural producer for repayment of duty under this subsection shall be in respect of deliveries of gaseous hydrocarbons in liquid form received by that producer within a period of 6 months and shall be made not later than 3 months following the end of each such period.

( 3 ) ( a ) Section 21 of the Finance Act, 1935 , is hereby amended in subsection (11) (inserted by section 18 of the Finance Act, 1940 ) by the addition thereto of the following paragraph after paragraph (1) (inserted by section 20 of the Finance Act, 1960 ):

"( m ) prohibiting the addition to or mixing with any hydrocarbon oil of any substance and prohibiting the importation, keeping for sale, sale, transportation or delivery of any hydrocarbon oil in which such substance is present.".

( b ) Regulations made under the said section 21 shall apply and have effect as if they had been made under that section as amended by this section.

(4) Section 21 (15) (as amended by section 70 (2) of the Finance Act, 1983 ) of the Finance Act, 1935 , is hereby amended in the definition of "motor vehicle" by the substitution of "or a vehicle referred to in paragraph 2 (b) of Part I (inserted by the Finance Act, 1991 ) of the Schedule to the Finance (Excise Duties) (Vehicles) Act, 1952 " for "or a vehicle referred to in paragraph 4B (inserted by the Finance Act, 1983 ) of Part I of the Schedule to the Finance (Excise Duties) (Vehicles) Act, 1952 ", and the said definition, as so amended, is set out in the Table to this subsection.

TABLE

the expression "motor vehicle" means a mechanically propelled vehicle which is designed, constructed, and suitable for use on roads, but does not include a tractor which is designed and constructed for use for agricultural purposes or a road roller or a vehicle referred to in paragraph 2 (b) of Part I (inserted by the Finance Act, 1991 ) of the Schedule to the Finance (Excise Duties) (Vehicles) Act, 1952 .

Excise duty on mechanically propelled vehicles.

75.—(1) In this section "the Act of 1952" means the Finance (Excise Duties) (Vehicles) Act, 1952 .

(2) Subject to subsection (4), the Act of 1952, shall, as respects licences under section 1 thereof taken out for periods beginning on or after the 1st day of April, 1991, be amended—

( a ) by the substitution of "£70 or less" for "forty pounds or less" (inserted by the Finance Act, 1983 ) in subparagraph (b) of subsection (2) of section 1,

( b ) by the addition of the following paragraph after paragraph (e)of subsection (4) of section 1:

"( f ) vehicles (including any cycle with an attachment for propelling it by mechanical power) not exceeding 400 kilograms in weight unladen adapted and used for invalids. ",

( c ) by the substitution of the following Part for Part 1 of the Schedule thereto:

"PART I

Description of Vehicle

	Rate of Duty
1. Vehicles of the following descriptions not exceeding 500 kilograms in weight unladen:
(a) bicycles or tricycles (other than tricycles neither constructed nor adapted for use nor used for the carriage of a passenger) of which the cylinder capacity of the engine—
(i) does not exceed 75 cubic centimetres	£ 10.
(ii) exceeds 75 cubic centimetres but does not exceed 200 cubic centimetres ... ... ... ... ... ... ...	£ 20.
(iii) exceeds 200 cubic centimetres ... ... ... ...	£ 40.
(b) bicycles or tricycles which are electrically propelled ...	£ 10.
(c) vehicles with 3 or more wheels neither constructed nor adapted for use nor used for the carriage of a driver or passenger	£ 40.
2. (a) Vehicles (commonly known as dumpers) not exceeding 3 metres cubed in capacity, level loaded, designed and constructed for use on sites of construction works (including road construction and house and other building works) for the purpose of conveying concrete, rubble, earth or other like material where the person taking out the licence shows to the satisfaction of the licensing authority that the vehicle is used mainly on such sites, and on public roads only—
(i) for the purpose of proceeding to and from the site where it is to be used, and when so proceeding neither carries nor hauls any load other than such as is necessary for its propulsion or equipment, or
(ii) for the purpose of conveying concrete, rubble, earth or like material for a distance of not more than one kilometre to and from any such site	£ 40.
(b) Vehicles (commonly known as off-road dumpers) exceeding 3 metres cubed in capacity, level loaded, designed and constructed primarily for use on sites of construction works (including road construction and house and other building works) for the purpose of conveying concrete, rubble, earth or other like materials and incapable by reason of their design and construction of exceeding a speed of 50 kilometres per hour on a level road under their own power and which are the subject of special permits under Article 17 of the Road Traffic (Construction, Equipment and Use of Vehicles) Regulations, 1963, ( S.I. No. 190 of 1963 ) ... ... ... ...	£300.
(c) Any vehicle (other than a vehicle constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement, by or in which goods being conveyed by such vehicle are processed or manufactured while the vehicle is in motion) constructed or adapted for use and used only for the conveyance of a machine, workshop, contrivance or implement (being a machine, workshop, contrivance or implement which is built in as part of the vehicle or otherwise permanently attached thereto) and no other load except articles used in connection with such machine, workshop, contrivance or implement or goods processed or manufactured therein ... ... ... ...	£ 40.
(d) Vehicles (commonly known as forklift trucks) designed and constructed for the purpose of loading and unloading goods where the person taking out the licence shows to the satisfaction of the licensing authority that the vehicle is used on public roads only—
(i) for the purpose of proceeding to and from the site where it is to be used for loading and unloading, and when so proceeding neither carries nor hauls any load other than such as is necessary for its propulsion or equipment, or
(ii) as part of the process of loading or unloading, for the purpose of conveying goods for a distance of not more than one kilometre to and from the site where it is loading or unloading ... ... ... ... ...	£ 40.
3.(a) Vehicles constructed or adapted for the carriage of more than 8 persons which are owned by a youth or community organisation and which are used exclusively by the organisation solely for the purpose of conveying persons on journeys directly related to the activities of the organisation and which have seating capacity for—
(i) more than 8 persons but not more than 20 persons ...	£100
(ii) more than 20 persons but not more than 40 persons ...	£160
(iii) more than 40 persons but not more than 60 persons ...	£220
(iv) more than 60 persons ... ... ... ... ...	£280.
(b) Vehicles (other than those referred to in subparagraph (c)of this paragraph) used as large public service vehicles within the meaning of the Road Traffic Act, 1961 , and having seating capacity for—
(i) more than 8 persons but not more than 20 persons ...	£100.
(ii) more than 20 persons but not more than 40 persons ...	£160.
(iii) more than 40 persons but not more than 60 persons ...	£220.
(iv) more than 60 persons ... ... ... ... ...	£280.
(c) Vehicles which are large public service vehicles within the meaning of the Road Traffic Act, 1961 , and which are used only for the carriage of children, or children and teachers, being carried to or from school or to or from school-related physical education activities, and are either licensed under Article 60 of the Road Traffic (Public Service Vehicles) Regulations, 1963 ( S.I. No. 191 of 1963 ), as amended, or owned or operated by a statutory transport undertaking ... ... ... ... ... ... ... ...	£ 50.
4. Vehicles of the following descriptions:
(a) vehicles designed, constructed and used for the purpose of trench digging or any kind of excavating or shovelling work which—
(i) are used on public roads only for that purpose or the purpose of proceeding to and from the place where they are to be used for that purpose, and
(ii) when so proceeding neither carry nor haul any load other than such as is necessary for their propulsion or equipment	£ 35.
(b) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 50 kilometres per hour on a level road under their own power) and agricultural engines, not being tractors or engines used for hauling on roads any objects except their own necessary gear,' threshing appliances, farming implements or supplies of fuel or water required for the purposes of the vehicles or agricultural purposes ... ... ...	£ 35.
(c) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 50 kilometres per hour on a level road under their own power and not being tractors in respect of which a duty is chargeable at the rate specified in subparagraph (b) of this paragraph) which are used for haulage in connection with agriculture and for no other purpose ... ... ...	£ 35.
Where a tractor is fitted with a detachable platform, container or implement (being a platform, container or implement used primarily for farm work), goods or burden of any other description conveyed on or in the platform, container or implement shall be regarded for the purposes of this subparagraph as being hauled by the tractor;
(d) tractors of any other description ... ... ...	£ 90.
5. Vehicles (including tricycles weighing more than 500 kilograms unladen) constructed or adapted for use and used for the conveyance of goods or burden of any other description in the course of trade or business (including agriculture and the performance by a local or public authority of its functions) and vehicles constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement by or in which goods being conveyed by such vehicles are processed or manufactured while the vehicles are in motion:
(a) being vehicles which are electrically propelled and which do not exceed 1,500 kilograms in weight unladen ... ... ...	£ 40.
(b) being vehicles which are not such electrically propelled vehicles as aforesaid and which have a weight unladen—
(i) not exceeding 3,000 kilograms ... ... ... ...	£100.
(ii) exceeding 3,000 kilograms but not exceeding 4,000 kilograms ... ... ... ...	£140.
(iii) exceeding 4,000 kilograms but not exceeding 5,000 kilograms ... ... ... ...	£180.
(iv) exceeding 5,000 kilograms but not exceeding 6,000 kilograms ... ... ... ...	£250.
(v) exceeding 6,000 kilograms but not exceeding 7,000 kilograms ... ... ... ...	£340.
(vi) exceeding 7,000 kilograms but not exceeding 8,000 kilograms ... ... ... ...	£430.
(vii) exceeding 8,000 kilograms ... ... ... ...	£430 plus £100 for each 1,000 kilograms or part thereof in excess of 8,000 kilograms.
6. Vehicles other than those charged with duty under the foregoing provisions of this Part of this Schedule:
(a) any vehicle which is used as a hearse and for no other purpose ... ... ... ... ... ... ... ...	£ 50.
(b) any vehicle (excluding a taxi) which is used as a small public service vehicle within the meaning of the Road Traffic Act, 1961 , and for no other purpose ... ... ... ...	£ 50.
(c) any vehicle which is fitted with a taximeter and is lawfully used as a street service vehicle within the meaning of the Road Traffic Act, 1961 , and for purposes incidental to such user and for no other purpose ... ... ... ... ... ...	£ 50.
(d) other vehicles to which this paragraph applies—
(i) with an engine cylinder capacity not exceeding 1,000 cubic centimetres ... ... ... ... ...	£ 77.
(ii) with an engine cyclinder capacity exceeding 1,000 cubic centimetres but not exceeding 1,500 cubic centimetres	£10.50 per 100 cubic centimetres or part thereof
(iii) with an engine cylinder capacity exceeding 1,500 cubic centimetres but not exceeding 1,700 cubic centimetres	£12 per 100 cubic centimetres or part thereof
(iv) with an engine cylinder capacity exceeding 1,700 cubic centimetres but not exceeding 2,000 cubic centimetres	£13 per 100 cubic centimetres or part thereof
(v) with an engine cylinder capacity exceeding 2,000 cubic centimetres but not exceeding 2,500 cubic centimetres	£16 per 100 cubic centimetres or part thereof
(vi) with an engine cylinder capacity exceeding 2,500 cubic centimetres ... ... ... ...	£18 per 100 cubic centimetres or part thereof
(vii) electrically propelled ... ... ... ...	£ 77:
Provided that where the rate of duty so specified in any case equals a number of whole pounds and a fraction of a pound, the fraction of a pound shall be regarded as a whole pound.".

(3) ( a ) Part II of the Schedule to the Act of 1952 is hereby amended by the deletion of paragraph 4 and by the substitution of the following paragraph for paragraph 5:

"5. ( a ) Where the applicant for a licence under section 1 of this Act satisfies the licensing authority that the vehicle in respect of which the licence is sought was constructed more than 30 years prior to the commencement of the period in respect of which the licence is sought the annual rate of duty shall, notwithstanding Part 1 of this Schedule, be—

(i) £10 where, apart from this paragraph, paragraph 1 of Part I of this Schedule would apply to the vehicle, and

(ii) £25 in respect of any other vehicle.

( b ) This paragraph shall not be construed so as to affect the application of the provisions of section 94 (2) (inserted by the Finance Act, 1991 ) of the Finance Act, 1973 , to vehicles to which this paragraph relates.".

( b ) This subsection shall come into operation on the 1st day of July, 1991.

(4) In respect of the provisions of Part I of the Schedule to the Act of 1952 (as amended by this section) the numeric references to volume and speed in paragraph 2 (b)thereof and to speed in paragraph 4 thereof shall, until the 1st day of July, 1991, be construed as if they were the respective numeric references in the corresponding paragraphs of that Part immediately before the 1st day of April, 1991.

(5) The Finance Act, 1973 , is hereby amended, with effect from the 1st day of April, 1991, by the substitution of the following subsection for subsection (2) of section 94:

"(2) The duty imposed by subsection (1) of this section shall be at the following rates:

( a ) £10 in relation to a vehicle to which paragraph 1 of Part 1 of the Schedule to the said Act applies;

( b ) £20 in relation to a vehicle to which subparagraph (b), (c) or (d)of paragraph 6 of Part I of the Schedule to the said Act applies and which is electrically propelled or has an engine capacity not exceeding 2,000 cubic centimetres;

( c ) £40 in relation to any vehicle to which paragraph (a) or (b) of this subsection does not relate:

Provided that the duty imposed by subsection (1) of this section shall not be chargeable or leviable in relation to a vehicle in respect of which a duty of excise under section 1 of the said Act is not chargeable or leviable.".

(6) Section 43 of the Finance Act, 1968 , is hereby repealed.

PART III VALUE-ADDED TAX

Interpretation (Part III).

76.—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 1986" means the Finance Act, 1986 ;

"the Act of 1987" means the Finance Act, 1987 .

Amendment of section 1 (interpretation) of Principal Act.

77.—Section 1 of the Principal Act is hereby amended in subsection (1) by the deletion of the definition of "hotel".

Amendment of section 7 (waiver of exemption) of Principal Act.

78.—Section 7 of the Principal Act is hereby amended in subsection (1) by the substitution of "to which paragraph (iv) of the First Schedule relates" for "specified in paragraphs (iv) and (x) of the First Schedule" and of "services to which the said paragraph (iv) relates" for "services specified in the paragraph or paragraphs".

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

79.—Section 8 of the Principal Act is hereby amended—

( a ) in subsection (1) (inserted by the Act of 1978) by the substitution of "subsections (2), (2A) and (8)" for "subsections (2) and (2A)", and

( b ) by the substitution of the following subsection for subsection (8) (inserted by the Act of 1978):

"(8) ( a ) Where the Revenue Commissioners are satisfied that two or more persons established in the State are closely bound by financial, economic and organisational links and that it would be expedient in the interest of efficient administration of the tax to do so then, subject to such conditions as they may impose by regulations, the said Commissioners, for the purpose of this Act, may—

(i) by notice in writing to each of the persons concerned, deem the activities relating to those links to be carried on by any one of the persons, and all transactions by or between such persons shall be deemed, for that purpose, to be transactions by that one person and all rights and obligations under this Act shall be determined accordingly, and

(ii) make each such person jointly and severally liable to comply with all the provisions of this Act and regulations (including the provisions requiring the payment of tax) that apply to each of those persons and subject to the penalties under this Act to which they would be subject if each such person was liable to pay to the Revenue Commissioners the whole of the tax chargeable, apart from regulations under this subsection, in respect of each such person:

Provided that this subsection shall not apply in the case of:

(I) the supply of immovable goods by any such person to any other such person, or

(II) the transfer of ownership of goods specified in section 3 (5) ( b ) (iii) from any such person to any other such person, except where, apart from the provisions of this subsection, each of the persons whose activities are deemed to be carried on by that one person is a taxable person.

( b ) The Revenue Commissioners may by notice in writing to each of the persons whose activities are, by virtue of a notification issued in accordance with paragraph (a)(i), deemed to be carried on by one of those persons, and as on and from the date specified in the notice (which date shall not be earlier than the date of issue of the notice) cancel the notification under the said paragraph; and as on and from the date specified in the said notice the provisions of the Act and regulations shall apply to all the persons as aforesaid as if a notification under the said paragraph had not been issued, but without prejudice to the liability of any of the persons for tax or penalties in respect of anything done or not done during the period for which the said notification was in force.

( c ) The Revenue Commissioners may, for the purpose of this subsection, deem a person engaged in the supply of non-taxable goods or services in the course or furtherance of business to be a taxable person.".

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

80.—Section 11 of the Principal Act is hereby amended—

( a ) in subsection (1) (inserted by the Act of 1985):

(i) in paragraph (a) —

(I) by the substitution of "21 per cent." for "23 per cent." (inserted by the Finance Act, 1990 ), and

(II) by the insertion after "in paragraphs (b)" of ", ( bi )",

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

"( bi ) 10 per cent. of the amount on which tax is chargeable in relation to goods or services of a kind specified in the Third Schedule,",

and

(iii) in paragraph (c), by the substitution of " 12.5 per cent. for " 10 per cent.",

and

( b ) in subsection (8), by the substitution in paragraph (a)(inserted by the Finance Act, 1973 ) of "Second, Third or Sixth Schedule" for "Second or Sixth Schedule".

Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

81.—Section 12 of the Principal Act is hereby amended in paragraph (a)of subsection (1) (inserted by the Act of 1987) by the insertion of the following subparagraph after subparagraph (iii):

(iiia) the tax charged to him during the period by other taxable persons in respect of services directly related to the transfer of ownership of goods specified in section 3 (5) ( b ) (iii),".

Amendment of section 15 (charge of tax on imported goods) of Principal Act.

82.—Section 15 (inserted by the Act of 1978) of The Principal Act is hereby amended in subsection (1) (inserted by the Act of 1985) by the insertion of the following paragraph after paragraph (a):

"(aa) on goods of a kind specified in the Third Schedule at the rate specified in section 11 (1) ( bi ) of the value of the goods,".

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

83.—Section 20 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (1A) (inserted by the Act of 1986):

"(1A) Where the Revenue Commissioners apply the provisions of section 8 (8) to a number of persons they may defer repayment of all or part of any tax refundable under subsection (1) to any one or more of the said persons prior to the application of those provisions, where any one or more of the said persons have not furnished all returns and remitted all amounts of tax referred to in section 19 (3) at the time of such application.".

Amendment of section 25 (appeals) of Principal Act.

84.—Section 25 of the Principal Act is hereby amended in subsection (1) by the insertion of the following paragraph after paragraph (a):

"(aa) the treatment of one or more persons as a single taxable person in accordance with section 8 (8),".

Amendment of First Schedule to Principal Act.

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

( a ) in paragraph (i) (inserted by the Act of 1987)—

(i) by the insertion in subparagraph (c)after "account" of and the negotiation of, or any dealings in, payments, transfers, debts, cheques and other negotiable instruments excluding debt collection and factoring",

(ii) by the substitution of the following subparagraph for subparagraph (g) (inserted by the Act of 1987):

"( g ) the management of an undertaking which is—

(I) a collective investment undertaking within the meaning of section 18 of the Finance Act, 1989 , or

(II) administered by the holder of an authorisation granted pursuant to the European Communities (Life Assurance) Regulations, 1984 ( S.I. No. 57 of 1984 ), or by a person who is deemed, pursuant to Article 6 of those Regulations, to be such a holder, the criteria in relation to which are the criteria specified in relation to an arrangement administered by the holder of a licence under the Insurance Act, 1936 , in section 9 (2) of the Unit Trusts Act, 1990 , or

(III) a unit trust scheme established solely for the purpose of superannuation fund schemes or charities, or

(IV) determined by the Minister for Finance to be a collective investment undertaking to which the provisions of this subparagraph apply;",

(iii) by the deletion of subparagraph ( gg ) (inserted by the Finance Act, 1989 ), and

(iv) by the substitution in paragraph (ix) (inserted by the Act of 1978) of "( g )" for "( g ) or (gg)"

( b ) by the substitution in paragraph (iv) of the following subparagraph for subparagraph (b):

"( b ) letting of the kind to which paragraph (vi) of the Third Schedule refers;",

( c ) by the deletion of paragraph (x) (inserted by the Finance Act, 1982 ), and

( d ) by the insertion of the following paragraph after paragraph (xi):

"( xia ) public postal services (including the supply of goods and services incidental thereto) supplied by An Post including postmasters, or by persons licensed in accordance with section 73 or subsection (1) of section 111 of the Postal and Telecommunications Services Act, 1983 ;".

Insertion of Third Schedule in Principal Act.

86.—(1) The Principal Act is hereby amended by the insertion after the Second Schedule (inserted by the Finance Act, 1976 ) of the following Schedule:

"THIRD SCHEDULE

Goods and Services Chargeable at the Rate Specified in Section 11 (1) ( bi )

(i) immovable goods;

(ii) services, other than services specified in paragraph (xiv) of the Sixth Schedule, consisting of the development of immovable goods and the maintenance and repair of immovable goods including the installation of fixtures, where the value of movable goods (if any) provided in pursuance of an agreement in relation to such services does not exceed two-thirds of the total amount on which tax is chargeable in respect of the agreement;

(iii) concrete ready to pour;

(iv) blocks, of concrete, of a kind which comply with the specification contained in the Standard Specification (Concrete Building Blocks) Declaration, 1974 (Irish Standard 20: 1974);

(v) newspapers and periodicals, normally published at least fortnightly, the contents of each issue of which consist, wholly or mainly, as regards the quantity of printed matter contained in them, of information on the principal current events and topics of general public interest;

(vi) letting of the kind to which paragraph (iv) ( b ) of the First Schedule refers;

(vii) tour guide services;

(viii) the hiring (in this paragraph referred to as 'the current hiring') to a person of—

( a ) a vehicle designed and constructed, or adapted, for the conveyance of persons by road,

( b ) a ship, boat or other vessel designed and constructed for the conveyance of passengers and not exceeding 15 tons gross,

( c ) a sports or pleasure craft of any description including a yacht, cabin cruiser, dinghy, canoe, skiff or racing boat, or

( d ) a caravan, mobile home, tent or trailer tent,

under an agreement, other than an agreement of the kind referred to in section 3 (1) (b), for any term or part of a term which, when added to the term of any such hiring (whether of the same goods or of other goods of the same kind) to the same person during the period of 12 months ending on the date of the commencement of the current hiring, does not exceed 5 weeks.".

(2) The Third Schedule (inserted by subsection (1) to The Principal Act is hereby amended—

( a ) in paragraph (ii) by the substitution of "paragraph (xiib) ( b ) or (xiv)" for "paragraph (xiv)", and

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

"(vi) ( a ) letting of immovable goods—

(I) by a hotel or guesthouse, or by a similar establishment which provides accommodation for visitors or travellers,

(II) in a house, apartment or other similar establishment which is advertised or held out as being holiday accommodation or accommodation for visitors or travellers, or

(III) in a caravan park, camping site or other similar establishment,

( b ) the provision of accommodation which is advertised or held out as holiday accommodation in any caravan, mobile home, tent, trailer tent or houseboat.".

Amendment of Sixth Schedule to Principal Act.

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

( a ) by the deletion of paragraphs (ii), (iii), (iv), (v), (x) (inserted by the Act of 1986), (xi), (xig) (inserted by the Act of 1987) and (xii),

( b ) in paragraph (xiib), (inserted by the Act of 1986) by the substitution of "paragraph (ii) of the Third Schedule" for "paragraph (iii)",

( c ) by the insertion of the following paragraph after paragraph (xiic) (inserted by the Act of 1986):

"(xiid ) services supplied in the course of their profession by jockeys;",

( d ) by the insertion of the following paragraph after paragraph (xiiih) (inserted by the Act of 1987):

"(xiiij ) services supplied in the course of their profession by veterinary surgeons;",

and

( e ) in paragraph (xiv), by the deletion of "and" in subparagraph (d) and by the deletion of subparagraph (e).

(2) The Sixth Schedule (inserted by the Act of 1985) to The Principal Act is hereby amended by the substitution of the following paragraph for paragraph (xiib) (inserted by the Act of 1986):

"(xiib ) ( a ) services consisting of work on immovable goods, other than services specified in—

(i) subparagraph (b)or paragraph (xiv), or

(ii) paragraph (ii) of the Third Schedule,

( b ) services consisting of the routine cleaning of immovable goods;".

PART IV STAMP DUTIES

Definitions (Part IV).

88.—In this Part—

"the Act of 1891" means the Stamp Act, 1891;

"the Commissioners" means the Revenue Commissioners.

Levy on banks.

89.—(1) In this section—

"assessable amount" means the amount arrived at by dividing the specified amount by twelve and deducting £15,000,000 from the quotient;

"bank" means a person who, on the 1st day of September, 1990, 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 (being returns relating to resident offices) furnished to the Central Bank of Ireland by the bank in respect of the assets and liabilities of the bank as on the 31st day of January, 1990, the 28th day of February, 1990, the 30th day of March, 1990, the 30th day of April, 1990, the 31st day of May, 1990, the 29th day of June, 1990, the 31st day of July, 1990, the 31st day of August, 1990, the 28th day of September, 1990, the 31st day of October, 1990, the 30th day of November, 1990, and the 31st day of December, 1990;

"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 302.4 in supplement 1 of the returns of the bank from the aggregate amount of the relevant sums shown in the returns in respect of Items 104, 105.1, 107 and 108 and shown as liabilities of the bank in such returns.

(2) A bank shall, not later than the 12th day of September, 1991, deliver to the 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 ) 0.26 per cent. of that part of the assessable amount shown therein that does not exceed £135,000,000 and

( b ) 0.3865 per cent. of that part of the assessable amount shown therein that exceeds £135,000,000:

Provided that in the case where the assessable amount shown in the statement does not exceed £135,000,000 stamp duty of an amount equal to 0.26 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 Commissioners by a bank such particulars as the 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 12th day of September, 1991, 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) may be enforced by the 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 Commissioners payable by the bank.

Amendment of First Schedule to Act of 1891.

90.—(1) In this section "the First Schedule" means the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Act of 1891.

(2) The Heading set out in Part I of the Fifth Schedule to this Act is hereby substituted for the Heading "BOND, COVENANT, or INSTRUMENT of any kind whatsoever" in the First Schedule.

(3) The Heading set out in Part II of the Fifth Schedule to this Act is hereby substituted for the Heading "LEASE" in the First Schedule.

(4) The Heading set out in Part III of the Fifth Schedule to this Act is hereby substituted for the Heading "MORTGAGE, BOND, DEBENTURE, COVENANT (except a marketable security) and WARRANT OF ATTORNEY to confess and enter up judgment" in the First Schedule.

Repeal of section 78 of Act of 1891.

91.—Section 78 of the Act of 1891 is hereby repealed.

Amendment of section 88 of Act of 1891.

92.—Section 88 of the Act of 1891 is hereby amended by the substitution in subsection (2) (inserted by section 63 of the Finance Act, 1973 ), of "£20,000" for "£10,000" wherever it occurs.

Exemption from stamp duty.

93.—Stamp duty shall not be chargeable on—

( a ) a licence granted under section 8 , 9 or 19 of the Petroleum and Other Minerals Development Act, 1960 , or

( b ) a lease granted under section 13 of that Act, or

( c ) an instrument for the sale, assignment or transfer of any such licence or lease or any right or interest therein.

Charge of duty upon instruments.

94.—The Act of 1891 is hereby amended as respects instruments executed on or after the 1st day of November, 1991, by the substitution of the following section for section 1:

"1. (1) Any instrument which—

( a ) is specified in the First Schedule to this Act, and

( b ) is executed in the State or, wheresoever executed, relates to any property situate in the State or any matter or thing done or to be done in the State,

shall be chargeable with stamp duty.

(2) The stamp duties to be charged for the benefit of the Central Fund upon the several instruments specified in the First Schedule to this Act shall be the several duties in the said schedule specified, which duties shall be subject to the exemptions contained in this Act and in any other enactment for the time being in force.

(3) ( a ) Any instrument chargeable with stamp duty shall, unless it is written upon duly stamped material, be duly stamped with the proper stamp duty before the expiration of 30 days after it is first executed, unless the opinion of the Commissioners with respect to the amount of duty with which the instrument is chargeable, has, before such expiration, been required under the provisions of this Act.

( b ) If the opinion of the Commissioners with respect to any instrument chargeable with stamp duty has been required, the instrument shall be stamped in accordance with the assessment of the Commissioners within 14 days after notice of the assessment.

(4) Where any instrument chargeable with stamp duty is not stamped or is insufficiently stamped—

( a ) the accountable person shall be liable, and

( b ) where there is more than one such accountable person they shall be liable jointly and severally,

for the payment of the stamp duty or, where the instrument is insufficiently stamped, then additional stamp duty and such duty, additional duty and any penalty relating to any such duty shall be deemed to be a debt due by the accountable person to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Commissioners and may (without prejudice to any other mode of recovery thereof) be sued for and recovered by action, or other appropriate proceedings, at the suit of the Attorney General or the Minister for Finance or the Commissioners in any court of competent jurisdiction, notwithstanding anything to the contrary contained in the Inland Revenue Regulation Act, 1890.

(5) The provisions of section 39 of the Finance Act, 1926 , shall apply in any proceedings in the Circuit Court or the District Court for or in relation to the recovery of stamp duty, additional stamp duty or penalty relating to any such duty.".

Variation of certain rates of duty by order.

95.—(1) Subject to the other provisions of this section, the Minister for Finance may—

( a ) by order vary the rate of duty chargeable on any instrument specified in the First Schedule to the Act of 1891 or may exempt such instrument from duty, and

( b ) make such order in respect of any particular class of instrument,

but no order shall be made under this section for the purpose of increasing any of the rates of duty.

(2) No order shall be made under this section for the purpose of varying the duty on any instrument or class of instrument where—

( a ) such instrument or class of instrument relates to—

(i) any immovable property situated in the State or any rights or interest in such property, or

(ii) any stock or share of a company having a register in the State, or

(iii) any risk situated in the State in relation to the Heading "INSURANCE" in the First Schedule to the Act of 1891,

( b ) such instrument or class of instrument is a bill of exchange or a promissory note.

(3) Notwithstanding anything to the contrary contained in subsection (2), the Minister for Finance may make an order in respect of an instrument which is executed for the purposes of debt factoring.

(4) The Minister for Finance may by order amend or revoke an order under this section, including an order under this subsection.

(5) An order under this section shall be laid before Dáil Éireann as soon as may be after it has been made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(6) Every order under this section shall have statutory effect upon the making thereof and, subject to subsection (5), unless the order either is confirmed by Act of the Oireachtas passed not later than the end of the year following that in which the order is made, or, is an order merely revoking wholly an order previously made under that subsection, the order shall cease to have statutory effect at the expiration of that period but without prejudice to the validity of anything previously done thereunder.

Amendment of section 122 of Act of 1891.

96.—Section 122 of the Act of 1891 is hereby amended as respects instruments executed on or after the 1st day of November, 1991, by the insertion of the following definition before the definition of "Commissioners":

"the expression 'accountable person' means—

( a ) the person referred to in column (2) of the Table to this definition in respect of the corresponding instruments set out in column (1) of that Table by reference to the appropriate Heading in the First Schedule to this Act,

( b ) in the case of an instrument which operates, or is deemed to operate, as a voluntary disposition inter vivos under the provisions of section 74 of the Finance (1909-10) Act, 1910, or section 24 of the Finance Act, 1949 , the parties to such instrument,

( c ) in the case of any other instrument, the parties to that instrument:

Provided that, in the case of any person who would be an accountable person if alive, the accountable person shall be the personal representative of such person:

TABLE

Instrument Heading specified in the First Schedule	Accountable Person
(1)	(2)
BOND, COVENANT or INSTRUMENT of any kind whatsoever.	The obligee, covenantee, or other person taking the security.
CONVEYANCE or TRANSFER on sale of any stocks or marketable securities.	The vendee or transferee.
CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities.	The vendee or transferee.
LEASE.	The lessee.
MORTGAGE, BOND DEBENTURE, COVENANT (except a marketable security) and WARRANT OF ATTORNEY to confess and enter up judgement	The mortgagee or obligee; in the case of a transfer, the transferee.
SETTLEMENT.	The settlor.
DUPLICATE or COUNTER PART of any instrument chargeable with any duty.	Any of the persons specified in this column, as appropriate.

Facts and circumstances affecting duty to be set forth in instruments, etc.

97.—The Act of 1891 is hereby amended as respects instruments executed on or after the 1st day of November, 1991, by the substitution of the following section for section 5:

"5. (1) Except as hereinafter provided, all the facts and circumstances affecting the liability of any instrument to duty, or the amount of the duty with which any instrument is chargeable, are to be fully and truly set forth in the instrument.

(2) Where it is not practicable to set out all the facts and circumstances, to which subsection (1) refers, in an instrument, additional facts and circumstances which—

( a ) affect the liability of such instrument to duty, or

( b ) affect the amount of the duty with which such instrument is chargeable, or

( c ) may from time to time be required by the Commissioners, are to be fully and truly set forth in a statement which shall be delivered to the Commissioners together with such instrument and the form of any such statement may from time to time be prescribed by the Commissioners.

(3) Any person who—

( a ) fraudulently or negligently executes any instrument, or

( b ) being employed or concerned in or about the preparation of any instrument, fraudulently or negligently prepares any such instrument,

in which all the facts and circumstances affecting the liability of such instrument to duty, or the amount of the duty with which such instrument is chargeable, are not fully and truly set forth in the instrument or in any statement to which subsection (2) relates, shall incur a fine of—

(i) £1,000, and

(ii) the amount, or in the case of fraud, twice the amount, of the difference between—

(A) the amount of duty payable in respect of the instrument based on the facts and circumstances set forth and delivered, and

(B) the amount of duty which would have been the amount so payable if the instrument and any accompanying statement had fully and truly set forth all the facts and circumstances referred to in subsections (1) and (2).

(4) Where any instrument was executed neither fraudulently nor negligently by a person and it comes to his notice, or it would have come to his notice, if he had taken reasonable care, that such instrument or any statement to which subsection (2) relates does not fully and truly set forth all the said facts and circumstances then, unless the Commissioners are informed of the error without unreasonable delay, such matter shall be treated, for the purposes of subsection (3), as having been negligently done by him.

(5) Where an instrument operates, or is deemed to operate, as a voluntary disposition inter vivos under the provisions of section 74 of the Finance (1909-10) Act, 1910, or section 24 of the Finance Act, 1949 , such fact shall be brought to the attention of the Commissioners in the statement delivered under the provisions of subsection (2) and such statement shall contain a statement of the value of the property, or in the case of a lease the minimum amount or value referred to in the said section 24, and where the requirements of this subsection are not complied with any person who executes such instrument shall for the purposes of subsection (3) be presumed, until the contrary is proven, to have acted negligently.

(6) Where such person as may be liable to a fine under subsection (3) is in doubt as to the application of law to, or the treatment for tax purposes of, any matter to be contained in an instrument, or in a statement to which subsection (2) relates, to be delivered by him to the Commissioners, he may deliver the instrument and, where applicable, the statement to the best of his belief as to the application of law to, or the treatment for the purposes of stamp duty of, that matter but he shall draw the attention in writing of the Commissioners to the matter in question in the instrument or statement, as appropriate, by specifying the doubt and, if he so does, he shall be treated as making a full and true disclosure with regard to that matter:

Provided that this subsection shall not apply where the Commissioners are not satisfied that the doubt was genuine and are of the opinion that such person was acting with a view to the evasion or avoidance of tax and in such a case the person shall be deemed not to have made a full and true disclosure with respect to the matter in question.".

Amendment of section 12 of Act of 1891.

98.—Section 12 of the Act of 1891 is hereby amended as respects instruments executed on or after the 1st day of November, 1991—

( a ) in subsection (1), by the insertion of "or may express their opinion," after "may be required by any person to express their opinion",

( b ) by the insertion of the following subsection after subsection (1):

"(1A) Where an instrument which is chargeable with stamp duty has not been delivered to the Commissioners for assessment of duty or impressing of stamps, the Commissioners shall make an assessment of such amount of stamp duty as, to the best of their knowledge, information and belief, ought to be charged, levied and paid thereon; and the accountable person shall be liable for the payment of the stamp duty so assessed unless, upon delivery of the instrument to them, the Commissioners make another assessment to be substituted for such assessment.",

( c ) in subsection (6), by the deletion in paragraph (c)of all the words from "; and every person" to the words "stated therein", and

( d ) by the addition of the following subsections after subsection (6):

"(7) If at any time it appears that for any reason an assessment is incorrect the Commissioners shall make such other assessment as they consider appropriate, which assessment shall be substituted for the first-mentioned assessment.

(8) If at any time it appears, in respect of an instrument which has been stamped in accordance with an assessment, that for any reason the assessment was an underassessment the Commissioners shall make such additional assessment as they consider appropriate."

Amendment of section 14 of Act of 1891.

99.—Section 14 of the Act of 1891 is hereby amended, as respects instruments executed after the 1st day of November, 1991, by the insertion in subsection (4) after "proceedings" of "or in civil proceedings by the Commissioners to recover stamp duty".

Penalty upon stamping instruments after execution.

100.—The Act of 1891 is hereby amended by the substitution of the following section for section 15:

"15. (1) Save where other express provision is in this Act made, any instrument which is unstamped or insufficiently stamped may be stamped after the expiration of the time for stamping provided for in subsection (3) of section 1, on payment of the unpaid duty and on payment of a penalty of £20 and also by way of further penalty, where the unpaid duty exceeds £20, of interest on such duty, at the rate of 1.25 per cent. per month or part of a month from the day upon which the said instrument was first executed to the day of payment of the unpaid duty.

(2) Where—

( a ) any instrument referred to in column (1) of the Table to the definition of 'accountable person.' in section 122, or

( b ) any instrument which operates, or is deemed to operate, as a voluntary disposition inter vivos,

has not been or is not duly stamped in conformity with the provisions of subsection (3) of section 1, the accountable person shall, in addition to the penalties provided for in subsection (1), be liable to pay an amount by way of further penalty as follows:

(i) an amount equivalent to 10 per cent. of the unpaid duty thereon, where such instrument is stamped not later than 6 months after the day upon which such instrument was first executed;

(ii) an amount equivalent to 20 per cent. of the unpaid duty thereon, where such instrument is stamped more than 6 months but not later than 12 months after the day upon which such instrument was first executed;

(iii) an amount equivalent to 30 per cent. of the unpaid duty thereon, where such instrument is stamped more than 12 months after the day upon which such instrument was first executed.

(3) Subject to any other express provision in this Act in relation to any particular instrument, the Commissioners may, if they think fit, remit any penalty payable on stamping.

(4) The payment of any penalty payable on stamping shall be denoted on the instrument by a particular stamp.

(5) Any penalty payable by operation of this section shall be chargeable and recoverable in the same manner as if it were part of the duty on the instrument to which it relates.

(6) The provisions of this section shall apply with effect as on and from the 1st day of November, 1991, to any instrument, whenever executed, which is unstamped or insufficiently stamped."

Rolls, books, etc., to be open to inspection.

101.—(1) The Act of 1891 is hereby amended as respects instruments executed on or after the 1st day of November, 1991, by the substitution of the following section for section 16:

"16. (1) Subject to subsection (2), any person who is a party to any instrument, or who has in his custody or under his control any document, the inspection whereof may tend to secure any duty, or to prove or lead to the discovery of any fraud, negligence, or omission in relation to any duty shall, within 14 days of a request by way of a notice in writing from the Commissioners—

( a ) provide such information as the Commissioners deem necessary, and

( b ) permit any person authorised by the Commissioners, to inspect any such document and to take such notes, extracts, prints, printouts and copies as he may deem necessary,

and in case of refusal to so provide or permit by the first mentioned person, he shall be guilty of an offence and shall be liable to a fine not exceeding £1,000, and if the refusal continues after conviction he shall be guilty of a further offence on every day on which the refusal continues and for each such offence he shall be liable to a fine not exceeding £100.

(2) It shall be a good defence in a prosecution for an offence under subsection (1) for the accused to show that he is required or entitled by law to refuse the request of the Commissioners.

(3) In this section 'document' includes—

( a ) any instrument, roll, book or record,

( b ) any record of an entry in a document, and

( c ) any information stored, maintained or preserved by means of any mechanical or electronic device, whether or not stored, maintained or preserved in a legible form.".

(2) Notwithstanding anything to the contrary contained in subsection (1) the provisions of that subsection shall apply to any instrument, the date of first execution of which appears from that instrument or otherwise to be prior to the 1st day of November, 1991, and where the Commissioners wish to verify that date to their satisfaction.

Alteration of stamp duties on leases.

102.—The Finance Act, 1949 , is hereby amended as respects instruments executed on or after the 1st day of November, 1991, by the substitution of the following section for section 24:

"24. (1) Any lease (not being executed in good faith and for valuable consideration) shall, for the purposes of this section, be deemed to be a lease operating as a voluntary disposition inter vivos, and the consideration for any lease shall not, for this purpose, be deemed to be valuable consideration where the Commissioners are of opinion that, by reason of the inadequacy of consideration or other circumstances, the lease confers a substantial benefit on the lessee.

(2) Where by operation of the provisions of this section any lease is deemed to operate as a voluntary disposition inter vivos the reference to consideration (other than rent) in the heading of charge entitled 'LEASE', which is set out in the First Schedule to the Stamp Act, 1891, shall be construed in relation to duty chargeable on such lease as a reference to the minimum amount or value that would be necessary in order that the lease, any rent thereunder remaining unchanged, would not be a lease operating as a voluntary disposition inter vivos.

(3) Subsection (2) of section 74 of the Finance (1909-10) Act, 1910, shall, with any necessary modifications, apply to a lease operating as a voluntary disposition inter vivos in the same manner as to a conveyance or transfer operating as a voluntary disposition inter vivos.".

Provision relating to voluntary disposition inter vivos, etc.

103.—(1) Where an instrument operates or is deemed to operate as a voluntary disposition inter vivos by operation of the provisions of section 74 of the Finance (1909-10) Act, 1910, or section 24 of the Finance Act, 1949 , and the statement of value of such property, or in the case of a lease the minimum amount or value referred to in the said section 24, provided to the Commissioners under subsection (5) of section 5 of the Act of 1891 (hereafter in this section referred to as the "submitted value") is less than the value of the property as agreed with, or ascertained by, the Commissioners (hereafter in this section referred to as the "ascertained value") then, as a penalty, the duty chargeable upon the conveyance or transfer, or lease, shall be increased by an amount (hereafter in this section referred to as the "surcharge") calculated according to the following provisions:

( a ) where the submitted value is less than the ascertained value by an amount which is greater than 10 per cent. of the ascertained value but not greater than 30 per cent. of the ascertained value, a surcharge equal to 50 per cent. of the total duty chargeable on the instrument:

Provided that no surcharge shall be chargeable where the difference between the submitted value and the ascertained value is less than £5,000;

( b ) where the submitted value is less than the ascertained value by an amount which is greater than 30 per cent. of the ascertained value but not greater than 50 per cent. of the ascertained value, a surcharge equal to the total duty chargeable on the instrument;

( c ) where the submitted value is less than the ascertained value by an amount which is greater than 50 per cent. of the ascertained value, a surcharge equal to double the total duty chargeable on the instrument.

(2).Where a statement of value, or in the case of a lease the minimum amount or value referred to in section 24 of the Finance Act, 1949 , is not provided in accordance with the provisions of subsection (5) of section 5 of the Act of 1891, then the liability of an instrument to a surcharge under this section may be ascertained by the Commissioners by the substitution of the consideration, other than rent in the case of lease, stated in the instrument for the submitted value.

(3).Any surcharge payable by operation of this section shall be chargeable and recoverable in the same manner as if it were part of the duty on the instrument to which it relates.

(4) Notwithstanding the provisions of subsection (4) of section 15 of the Act of 1891, any surcharge imposed by operation of this section shall not be denoted on an instrument to which it relates by impressed stamps or otherwise.

(5) Subsection (3) of section 74 of the Finance (1909-10) Act, 1910, is hereby repealed.

(6) This section shall have effect as respects instruments executed on or after the 1st day of November, 1991.

Procedure to apply where consideration etc., cannot be ascertained.

104.—(1) Where in the case of any instrument which, except for the fact that the amount or value of the consideration or the average annual rent cannot be ascertained at the date of execution thereof, would otherwise be chargeable with ad valorem duty on such consideration or rent as a conveyance or transfer on sale or as a lease, the Commissioners may charge ad valorem duty on such instrument as if—

( a ) in the case of a conveyance or transfer on sale, the value of the property conveyed or transferred was substituted for the amount or value of the consideration chargeable under the appropriate heading of charge under the Heading "CONVEYANCE or TRANSFER on sale of any stocks or marketable securities" or the Heading "CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities" in the First Schedule to the Act of 1891;

( b ) in the case of a lease, the amount or value of the consideration, other than rent, which could be obtained from a tenant leasing the property for full consideration under the terms created by the lease (but disregarding the amount or value of any rent or consideration other than rent payable thereunder) was substituted for the amount or value of the consideration, other than rent, chargeable under the heading of charge entitled "LEASE" in the First Schedule to the Act of 1891.

( 2 ) ( a ) For the purposes of subsection (1) the provisions of subsections (2) and (3) of section 56 of the Act of 1891 shall be disregarded and those provisions shall not apply to any instrument in relation to which subsection (1) applies.

( b ) Subsection (1) shall not apply to any instrument in relation to which subsection (3) (a) of section 112 of the Finance Act, 1990 , applies.

(3) This section shall have effect as respects instruments executed after the passing of this Act.

Valuation of property chargeable with stamp duty.

105.—(1) The Commissioners shall ascertain the value of property the subject of an instrument chargeable with stamp duty in the same manner, subject to any necessary modification, as is provided for in sections 15 , 16 and 17 of the Capital Acquisitions Tax Act, 1976 .

(2) This section shall have effect as respects instruments executed on or after the 1st day of November, 1991.

Amendment of certain provisions relating to fines.

106.—(1) Where an act or omission occurs in respect of which a person would, but for this section, have incurred the fine provided for in any provision of the Acts specified in column (2) of the Table to this section at any reference number, the person shall, in lieu of the fine so provided for, be liable to the fine specified in column (3) of the said Table at that reference number and that provision shall be construed and have effect accordingly.

TABLE

Reference Number	Provision of the Acts	Fine
(1)	(2)	(3)
		£
1	Section 8 (3) of the Act of 1891.	500
2	Section 9 of the Act of 1891.	1,000
3	Section 17 of the Act of 1891.	500
4	Section 83 of the Act of 1891.	500
5	Section 100 of the Act of 1891.	500
6	Section 107 of the Act of 1891.	500
7	Section 109 (2) of the Act of 1891	500
8	Section 20 of the Stamp Duties Management Act, 1891	500
9	Section 21 of the Stamp Duties Management Act, 1891	1,000
10	Section 4 (2) of the Finance (1909-10) Act, 1910	500
11	Section 41 (3) of the Finance Act, 1970 .	500

(2) This section shall have effect as respects an act or omission which occurs on or after the 1st day of November, 1991.

Amendment of section 4 of Stock Transfer Act, 1963 .

107.— Section 4 of the Stock Transfer Act, 1963 , is hereby amended as respects instruments executed on or after the 1st day of November, 1991, by the substitution in subsection (1) of "a penalty of £500" for "a penalty of one hundred pounds".

Application of section 485 of income Tax Act, 1967 .

108.—(1) The provisions of section 485 of the Income Tax Act, 1967 , shall, subject to any necessary modifications, apply to stamp duty in the same manner as they apply to income tax and where the provisions therein provided are exercised with regard to stamp duty they shall be exercised as if stamp duty was a tax to be collected and levied by the Collector-General.

(2) This section shall have effect as respects instruments executed on or after the 1st day of November, 1991.

Application of certain provisions relating to penalties under Income Tax Act, 1967 .

109.—(1) Sections 128 (4), 507 , 508 , 510 , 511 , 512 , 517 and 518 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply to a fine under

( a ) the Act of 1891, or

( b ) any other enactment providing for fines in relation to stamp duty,

as if the fine were a penalty under the Income Tax Acts, and the provisions of section 22 of the Inland Revenue Regulation Act, 1890, shall not apply in a case to which any of the said sections of the Income Tax Act, 1967 , apply by virtue of this section.

(2) This section shall have effect as respects instruments executed on or after the 1st day of November, 1991.

Amendment of Chapter II (stamp duty on capital companies of Part IV of Finance Act, 1973 .

110.—Chapter II of Part IV of the Finance Act, 1973 , is hereby amended by the insertion of the following section after section 67A:

"Restriction of application (Chapter II)

67B.—This Chapter shall not apply to any investment company to which the provisions of Part XIII of the Companies Act, 1990 , relate.".

Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982 .

111.— Section 92 of the Finance Act, 1982 , is hereby amended in subsection (8) (inserted by the Finance Act, 1984 ) by the addition of the following proviso to the definition of "relevant premium":

"Provided that an amount received from an insurer who is acting in the course of his business as an insurer shall not, for the purposes of this subsection, be a relevant premium.".

PART V RESIDENTIAL PROPERTY TAX

Amendment of section 104 (assessment and payment of tax) of Act, 1983.

112.— Section 104 of the Finance Act, 1983 , is hereby amended by the addition of the following subsection after subsection (9):

"(10) Notwithstanding the provisions of this section, an assessment or an amended assessment of tax may be made by the Commissioners under this section at any time and such assessment or amended assessment shall be made on—

( a ) the assessable person,

( b ) the person whom the Commissioners have reason to believe is an assessable person, or

( c ) the personal representative of the assessable person or of the person whom the Commissioners have reason to believe would, if alive, be an assessable person,

and where the assessment or amended assessment is so made on the personal representative, he shall have the same right of appeal under section 109 as if he were an assessable person.".

PART VI CAPITAL ACQUISITIONS TAX AND DEATH DUTIES

Interpretation (Part VI).

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

Amendment of section 19 (value of agricultural property) of Principal Act.

114.—Subsection (1) of section 19 of the Principal Act shall—

( a ) as respects a gift or inheritance taken on or after the 30th day of January, 1991, have effect as if "55 per cent."were substituted for "50 per cent." in the definition of 41 "agricultural value", and

( b ) as respects a gift or inheritance taken on or after the passing of this Act, have effect as if "80 per cent." were substituted for "75 per cent." in the definition of "farmer".

Amendment of Second Schedule to the Principal Act.

115.—(1) The Second Schedule to The Principal Act (as amended by section 111 of the Finance Act, 1984 ) is hereby amended by the substitution of the following Part for Part II:

"PART II

TABLE

Portion of Value	Rate of tax
	Per cent.
The threshold amount	Nil
The next £10,000	20
The next £40,000	30
The next £50,000	35
The balance	40

(2) This section shall have effect in relation to gifts and inheritances taken on or after the 30th day of January, 1991.

Inheritances taken by parents.

116.—(1) In this section "class threshold of £150,000" means the class threshold of £150,000 in the definition of "class threshold" contained in paragraph 1 (inserted by section 111 of the Finance Act, 1984 ) of the Second Schedule to The Principal Act.

(2) Subject to subsection (3), the class threshold of £150,000 shall apply, and be deemed always to have applied, in relation to a taxable inheritance taken on or after the 2nd day of June, 1982, by a parent of the disponer where—

( a ) the interest taken by the successor is not a limited interest, and

( b ) the inheritance is taken on the date of death of the disponer.

(3) Notwithstanding the provisions of section 46 of the Principal Act, interest shall not be payable on any repayment of tax which arises by virtue of this section where such tax was paid prior to the date of the passing of this Act.

Reduction in estimated market value of certain dwellings.

117.—(1) In so far as an inheritance consists of a house or the appropriate part of a house—

( a ) at the date of the inheritance, and

( b ) at the valuation date,

and is taken by a successor who, at the date of the inheritance—

(i) is a brother or sister of the disponer,

(ii) has attained the age of 55 years,

(iii) has resided in the house with the disponer continuously for a period of not less than 5 years ending on the date of the inheritance, and

(iv) is not beneficially entitled in possession to any other house or the appropriate part of any other house,

the estimated market value of the house or the appropriate part of the house shall, notwithstanding anything to the contrary in section 15 of the Principal Act, be reduced by 50 per cent. or £50,000, whichever is the lesser:

Provided that where the house or the appropriate part of the house comprised in the inheritance referred to in subsection (1) is agricultural property within the meaning of subsection (1) of section 19 of the Principal Act and the successor is a farmer within the meaning of that subsection, the provisions of this section shall not apply.

(2) Where a house, or the appropriate part of a house to which subsection (1) relates was not in the beneficial ownership of the disponer for the period of 5 years ending on the date of the inheritance, that period of 5 years shall be deemed to include any period, immediately prior to the date on which the disponer acquired such beneficial ownership, during which the successor was residing continuously with the disponer in any other house, or the appropriate part of any other house, of the disponer.

(3) In this section—

"appropriate part", in relation to a house, has the meaning assigned to it in relation to property by subsection (5) of section 5 of the Principal Act;

"house" means a building, or a part of a building, used by the disponer as his main or only dwelling together with its garden or grounds of an ornamental nature.

(4) This section shall have effect in relation to inheritances taken on or after the 30th day of January, 1991.

Application of section 60 (relief in respect of certain policies of insurance) of Finance Act, 1985 .

118.—For the purposes of section 60 of the Finance Act, 1985 , "relevant tax" shall be deemed to include inheritance tax payable in respect of an inheritance taken under a disposition made by the spouse of the insured where the inheritance is taken on the date of death of the insured.

Relief in respect of certain policies of insurance relating to tax payable on gifts.

119.—(1) In this section—

"appointed date" means—

( a ) a date occurring not earlier than 8 years after the date on which a relevant insurance policy is effected, or

( b ) a date on which the proceeds of a relevant insurance policy become payable either on the critical illness or the death of the insured, or one of the insured in a case to which paragraph (b) of the definition of "insured" relates, being a date prior to the date to which paragraph (a)of this definition relates; "insured" means—

( a ) where the insured is an individual, that individual, or

( b ) where the insured is an individual and the spouse of that individual at the date the policy is effected, that individual and the spouse of that individual, jointly or separately, or the survivor of them, as the case may be;

"relevant insurance policy" means a policy of insurance—

( a ) which is in a form approved by the Commissioners for the purposes of this section,

( b ) in respect of which annual premiums are paid by the insured,

( c ) the proceeds of which are payable on the appointed date, and

( d ) which is expressly effected under this section for the purpose of paying relevant tax;

"relevant tax" means gift tax or inheritance tax, payable in connection with an inter vivos disposition made by the insured within one year after the appointed date, excluding gift tax or inheritance tax payable on an appointment out of an inter vivos discretionary trust set up by the insured.

(2) The proceeds of a relevant insurance policy shall, to the extent that such proceeds are used to pay relevant tax, be exempt from tax and shall not be taken into account in computing such tax.

(3) Subject to the provisions of section 54 of the Principal Act and section 127 of the Finance Act, 1990 , where the insured makes an inter vivos disposition of the proceeds, or any part of the proceeds, of a relevant insurance policy other than in paying relevant tax, such proceeds shall not be exempt from tax.

(4) A relevant insurance policy shall be a qualifying insurance policy for the purposes of section 60 of the Finance Act, 1985 , where the proceeds of such relevant insurance policy become payable on the death of the insured or one of the insured in a case to which paragraph (b) of the definition of "insured" relates:

Provided that such relevant insurance policy would have been a qualifying insurance policy if it had been expressly effected under that section.

(5) A qualifying insurance policy for the purposes of section 60 of the Finance Act, 1985 , shall be a relevant insurance policy where the proceeds of such qualifying insurance policy are used to pay relevant tax arising under an inter vivos disposition made by the insured within one year after the appointed date.

(6) Section 143 of the Income Tax Act, 1967 (as amended by section 60 of the Finance Act, 1985 ) is hereby amended by the addition to subsection (5) of the following paragraph after paragraph (c):

"( d ) be given for the year 1991-92 and subsequent years of assessment in respect of premiums payable in respect of a relevant insurance policy within the meaning of section 119 of the Finance Act, 1991 .".

Capital acquisitions tax, waiver in respect of certain interest payable, etc.

120.—(1) In this section "donee" includes a successor and a reference to a gift or a taxable gift includes a reference to an inheritance or a taxable inheritance, as the case may be, and a reference to gift tax includes a reference to inheritance tax.

(2) Where in respect of a gift taken on or before the 30th day of January, 1991—

( a ) gift tax is due and payable by a donee on any date on or before the 30th day of September, 1991, and

( b ) in the period beginning on the 30th day of January, 1991, and ending on the 30th day of September, 1991, a return is delivered and gift tax is assessed in respect of the gift in accordance with the provisions of Section 36 (inserted by section 74 of the Finance Act, 1989 ) of The Principal Act or section 104 of the Finance Act, 1986 , and

( c ) such gift tax is paid on or before the 30th day of September, 1991,

interest payable on such gift tax up to the 30th day of April, 1991, shall be waived and penalties, if incurred, shall not be collected.

(3) For the purposes of subsection (2) where—

( a ) gift tax assessed on a taxable gift is being paid by instalments, or

( b ) a payment on account of gift tax has been made,

sums paid in discharge of earlier instalments or as a payment on account of tax shall, notwithstanding the provisions of subsection (4) of section 41 of the Principal Act, be applied or reapplied towards the discharge of tax in the first instance:

Provided that where the sum so paid is in excess of the sum to be so applied or reapplied, the excess shall not be repaid.

(4) This section shall not apply in relation to a gift—

( a ) where gift tax is due and payable by the donee concerned in respect of any other gift taken by him, unless such gift tax is paid on or before the 30th day of September, 1991,

( b ) where any capital gains tax is due and payable in respect of a disposal of the property comprised in the gift concerned, unless such capital gains tax and penalties (together with all interest due in respect of that tax) is paid at the same time or prior to the date of payment of the gift tax on that gift.

(5) Where additional gift tax becomes due and payable as a result of a revaluation of property included in a self assessed return, which was delivered on or after the 30th day of January, 1991, interest payable on such additional gift tax shall not be waived.

( 6 ) ( a ) A fine or other penalty imposed by a court in connection with a gift shall not be waived.

( b ) Interest on gift tax, which has been ordered to be paid by a court, shall not be waived.

Amendment of section 57 (exemption of certain securities) of Capital Acquisitions Tax Act, 1976 .

121.—(1) Section 57 of the Principal Act is hereby amended—

( a ) in subsection (1) by the substitution of the following definition for the definition of unit trust scheme:

"'unit trust scheme' means an authorised unit trust scheme within the meaning of the Unit Trusts Act, 1990 , whose deed expressing the trusts of the scheme restricts the property subject to those trusts to securities.",

and

( b ) in subsection (2) (as amended by section 40 of the Finance Act, 1978 ) by the substitution for " Unit Trusts Act, 1972 " of " Unit Trusts Act, 1990 ".

(2) This section shall have effect in relation to gifts and inheritances taken on or after the 26th day of December, 1990.

Death duties, waiver in respect of certain interest payable, etc.

122.—(1) Where outstanding death duties are paid on or before the 30th day of September, 1991, interest payable on such duties up to the 30th day of April, 1991, shall be waived and penalties, if incurred, shall not be collected.

(2) This section shall not apply to any penalty imposed by a court or to interest on death duties, the payment of which has been ordered by a court.

(3) In this section "Death duties" has the meaning assigned to it by section 13 (3) of the Finance Act, 1894.

PART VII MISCELLANEOUS

Capital Services Redemption Account.

123.—(1) In this section—

"the principal section" means section 22 of the Finance Act, 1950 ;

"the 1990 amending section" means section 132 of the Finance Act, 1990 ;

"the forty-first 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, 1991, subsection (4) of the 1990 amending section shall have effect with the substitution of "£47,057,633" for "£44,965,113".

(3) Subsection (6) of the 1990 amending section shall have effect with the substitution of "£35,625,154" for "£34,561,200".

(4) A sum of £49,030,307 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, 1991.

(5) The forty-first 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 forty-first additional annuity, not exceeding £37,685,800 in any financial year, may be applied towards defraying the interest on the public debt.

(7) The balance of the forty-first additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

Amendment of section 92 (tax concessions for disabled drivers, etc.) of Finance Act, 1989 .

124.— Section 92 of the Finance Act, 1989 , is hereby amended in subsection (1) by the substitution in paragraph (ii) of "20 per cent." for "30 per cent.".

Repeals.

125.—Each enactment specified in column (2) of the Fourth Schedule is hereby repealed to the extent specified in column (3) of that Schedule.

Amendment of section 141 (incapacitated children) of Income Tax Act, 1967 .

126.—As respects the year 1991-92 and subsequent years of assessment, section 141 (inserted by the Finance Act, 1986 ) of the Income Tax Act, 1967 , is hereby amended by the substitution, in subsection (4), of "£2,100" for "£720" and the said subsection (4), as so amended, is set out in the Table to this section.

TABLE

(4) No deduction shall be allowed under this section in respect of any child who is entitled in his own right to an income exceeding £2,100 a year, except that, if the amount of the excess is less than the deduction which apart from this subsection would be allowable, a deduction reduced by that amount shall be allowed:

Provided that in calculating the income of the child for the purposes of the foregoing provision no account shall be taken of any income to which the child is entitled as the holder of a scholarship, bursary, or other similar educational endowment.

Amendment of section 13 (Commissioners to keep accounts) of Inland Revenue Regulation Act, 1890.

127.—Section 13 of the Inland Revenue Regulation Act, 1890, is hereby amended, in subsection (1), by the deletion of "at their chief office".

Amendment of section 17 (Commissioners to keep accounts) of Inland Revenue Regulation Act, 1890.

128.— Section 17 (as amended by the Finance Act, 1976 ) of the Finance Act, 1970 , is hereby amended by the insertion, in paragraph (a)of subsection (5), of "refusal to issue, appeal against refusal to issue," after "the issue," and the said paragraph, as so amended, is set out in the Table to this section.

TABLE

( a ) the issue, refusal to issue, appeal against refusal to issue, recall or cancellation of certificates of authorisation and the surrender of the certificates;

Application of certain income tax provisions in relation to the collection and recovery of capital acquisitions tax, etc.

129.—(1) In this section—

"the Collector" means the Collector-General appointed under section 162 of the Income Tax Act, 1967 ;

"the Commissioners" means the Revenue Commissioners; "functions" includes powers and duties;

"the Principal Act" means the Capital Acquisitions Tax Act, 1976 ;

"tax" means any tax chargeable under the provisions of The Principal Act.

(2) Notwithstanding anything in The Principal Act, all sums due under the provisions of that Act shall be paid to the Collector or to such person as may be nominated under the provisions of this section.

(3) Section 187 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply in relation to an assessment of tax, a correcting assessment of tax, or an additional assessment of tax as it applies in relation to assessments to income tax.

(4) The Collector shall collect and levy the tax from time to time charged in all assessments, correcting assessments and additional assessments of which particulars have been transmitted to him under subsection (3).

(5) All the provisions of the Income Tax Acts relating to the collection and recovery of income tax shall, subject to any necessary modifications, apply in relation to tax as they apply in relation to income tax chargeable under Schedule D.

( 6 ) ( a ) The Revenue Commissioners may nominate persons to exercise on behalf of the Collector any or all of the functions conferred upon him by this section and, accordingly, those functions, as well as being exercisable by the Collector, shall also be exercisable on his behalf by persons so nominated.

( b ) A person shall not be nominated under this subsection unless he is an officer or employee of the Commissioners.

(7) This section shall apply and have effect as on and from the 1st day of October, 1991.

Amendment of section 73 (deduction from payments due to defaulters of amounts due in relation to tax) of Finance Act, 1988 .

130.—(1) Section 73 of the Finance Act, 1988 , is hereby amended in subsection (1) by the substitution of the following definition for the definition of "the Acts":

"'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, and

(v) the Stamp Act, 1891, and the enactments amending or extending that Act,

and any instruments made thereunder;".

(2) This section shall apply and have effect as on and from the 1st day of October, 1991.

Care and management of taxes and duties.

131.—All taxes and duties (except the excise duties on mechanically propelled vehicles imposed by section 75) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

Short title, construction and commencement.

132.—(1) This Act may be cited as the Finance Act, 1991 .

(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 1990, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1991.

(5) Part IV and section 130 (so far as relating to stamp duties) shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6) Part V shall be construed together with Part VI of the Finance Act, 1983 , and the enactments amending or extending that Part.

(7) Part VI (other than section 122) and sections 129 and 130 (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.

(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, 1991.

(9) Part III (other than sections 77 to 79, section 81, sections 83 to 85, section 86 (2), paragraphs ( c ) to ( e ) of section 87 (1) and section 87 (2)) shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1991, paragraph ( c ) of section 87 (1) shall take effect as on and from the 1st day of July, 1991, sections 77 and 78, paragraphs ( b ) to ( d ) of section 85, paragraph ( b ) of section 86 (2) and paragraph (d) of section 87 (1) shall take effect as on and from the 1st day of January, 1992.

(10) 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.

(11) 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.

(12) 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.

Sections 2 and 3.

FIRST SCHEDULE

AMENDMENT OF ENACTMENTS

PART I

Amendments Consequential on Changes in Rates of Tax

1. Section 1 (1) of the Income Tax Act, 1967 , is, in relation to income tax for the year 1991-92 and subsequent years of assessment, hereby amended—

(i) by the substitution of the following definition for the definition of "higher rates" (inserted by the Finance Act, 1984 ):

"'higher rates', in relation to tax, means the rates of tax, known by that description, provided for in section 2 of the Finance Act, 1991 ;",

and

(ii) by the substitution of the following definition for the definition of "standard rate" (inserted by the Finance Act, 1984 ):

"'standard rate', in relation to tax, means the rate of tax, known by that description, provided for in section 2 of the Finance Act, 1991 ;".

2. (1) The reference in subsection (1) of section 3 of t he Finance Act, 1974 , to the rate of 35 per cent. shall be construed, and be always deemed to have been construed, as respects the year 1989-90, as a reference to the rate of 32 per cent. and, as respects the year 1990-91, as a reference to the rate of 30 per cent.

(2) Section 3 of the Finance Act, 1974 , shall not apply or have effect for the year 1991-92 or any subsequent year of assessment.

PART II

Amendments Consequential on Changes in Personal Reliefs

The Income Tax Act, 1967 , is hereby amended in accordance with the following provisions:

( a ) in section 138—

(i) in paragraph (a), by the substitution of "£4,200" for "£4,100" (inserted by the Finance Act, 1988 ),

(ii) in paragraph (b)(as amended by the Finance Act, 1988 ), by the substitution of "£2,600" for "£2,550" and of "£4,200" for "£4,100", and

(iii) in paragraph (c), by the substitution of "£2,100" for "£2,050" (inserted by the Finance Act, 1988 ),

and

( b ) in section 138A (2) (inserted by the Finance Act, 1985 ), by the substitution of "£1,600" for "£1,550" (inserted by the Finance Act, 1988 ) and of "£2,100" for "£2,050" (inserted by the Finance Act, 1988 ).

Section 54.

SECOND SCHEDULE

URBAN RENEWAL: TEMPLE BAR AREA

PART I

Interpretation

In this Schedule—

"thoroughfare" includes any bridge, green, hill, river and street;

a reference to a line drawn along any thoroughfare is a reference to a line drawn along the centre of that thoroughfare;

a reference to a projection of any thoroughfare is a reference to a projection of a line drawn along the centre of that thoroughfare;

a reference to the point where any thoroughfare or projection of any thoroughfare intersects or joins any other thoroughfare is a reference to the point where a line drawn along the centre of one thoroughfare, or in the case of a projection of a thoroughfare, along the projection, would be intersected or joined by a line drawn along the centre of the other thoroughfare.

PART II

Description of Temple Bar Area

That part of the county borough of Dublin bounded by a line commencing at the point (hereafter in this description referred to as the first-mentioned point") where the River Liffey is intersected by O'Connell Bridge, then continuing, initially in a southerly direction along O'Connell Bridge, Westmoreland Street, College Green, Dame Street, Cork Hill and Lord Edward Street to the point where it joins Fishamble Street, then continuing in a northerly direction along Fishamble Street and the northerly projection thereof to the point where it intersects the River Liffey, then continuing in an easterly direction along the River Liffey to the first-mentioned point.

Section 73.

THIRD SCHEDULE

RATES OF EXCISE DUTY ON TOBACCO PRODUCTS

PART I

Charged, levied and paid as on and from the 31st day of January, 1991

Description of Product	Rate of Duty
Cigarettes	£42.52 per thousand together with an amount equal to 15.08 per cent. of the price at which the cigarettes are sold by retail
Cigars	£64.740 per kilogram
Sweetened pipe tobacco	£65.422 per kilogram
Hard pressed tobacco	£41.837 per kilogram
Other pipe tobacco	£52.590 per kilogram
Other smoking or chewing tobacco	£54.631 per kilogram

PART II

Charged, levied and paid as on and from the 1st day of March, 1991

Description of Product	Rate of Duty
Cigarettes	£42.52 per thousand together with an amount equal to 16.43 per cent. of the price at which the cigarettes are sold by retail
Cigars	£66.290 per kilogram
Sweetened pipe tobacco	£66.989 per kilogram
Hard pressed tobacco	£42.839 per kilogram
Other pipe tobacco	£53.849 per kilogram
Other smoking or chewing tobacco	£55.939 per kilogram

Section 125.

FOURTH SCHEDULE

ENACTMENTS REPEALED

Session and Chapter or Number and Year	Short Title	Extent of Repeal
(1)	(2)	(3)
7 & 8 Geo. 4, c. 53.	Excise Management Act 1827, 91 and 92.	Sections 86, 87, 88, 89, 90,
14 & 15 Vict., c. 93	Petty Sessions (Ireland) Act, 1851	Section 42.
No. 48 of 1936	Courts of Justice Act,	Section 76.
No. 26 of 1986	Courts (No. 2) Act, 1986	Subsection (3) of section 2.

Section 90.

FIFTH SCHEDULE

STAMP DUTY ON INSTRUMENTS

PART I

Bonds, Covenants, etc.

"BOND, COVENANT, or INSTRUMENT of any kind whatsoever.

(1) Being the only or principal or primary security for any annuity (except upon the original creation thereof by way of sale or security, and except a superannuation annuity), or for any sum or sums of money at stated periods, not being interest for any principal sum secured by a duly stamped instrument, nor rent reserved by a lease.
For a definite and certain period, so that the total amount to be ultimately payable can be ascertained—
where the total amount does not exceed £20,000	Exempt
where the total amount exceeds £20,000:
for every £1,000, or fractional part of £1,000, of the amount secured	£1.00
Provided that the duty so charged shall not exceed £500.
For the term of life or any other indefinite period:
for every £100, or fractional part of £100, of the annuity or sum periodically payable	£2.50
Provided that the duty so charged shall not exceed £500.
(2) Being a collateral or auxiliary or additional or substituted security for any of the above-mentioned purposes where the principal or primary instrument is duly stamped.
Where the amount secured does not exceed £20,000	Exempt
Where the total amount to be ultimately payable can be ascertained and exceeds £20,000	£10.00
In any other case:
for every £100, or fractional part of £100, of the annuity or sum periodically payable	50p
Provided that the duty so charged shall not exceed £500.
(3) Being a grant or contract for payment of a superannuation annuity, that is to say, a deferred life annuity granted or secured to any person in consideration of annual premiums payable until he attains a specified age and so as to commence on his attaining that age.
For every £100, or fractional part of £100, of the annuity	50p
Provided that the duty so charged shall not exceed £500.

PART II

Leases

"LEASE

(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
(2) For any definite term less than a year of any lands, tenements or heritable subjects	The same duty as a lease for a year at the rent reserved for the definite term
(3) For any other definite term or for any indefinite term of any lands, tenements, or heritable subjects—
(a) where the consideration or any part of the consideration (other than rent), moving either to the lessor or to any other person, consists of any money, stock or security, and—
(i) the amount or value of such consideration does not exceed £5,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions, in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds £5,000	Exempt
(ii) the amount or value of such consideration exceeds £5,000 but does not exceed £10,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds £10,000: for every £100, or fractional part of £100, of the consideration	£1.00
(iii) the amount or value of such consideration exceeds £10,000 but does not exceed £15,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds £15,000:
for every £100, or fractional part of £100, of the consideration	£2.00
(iv) the amount or value of such consideration exceeds £15,000 but does not exceed £25,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds £25,000:
for every £100, or fractional part of £100, of the consideration	£3.00
(v) the amount or value of such consideration exceeds £25,000 but does not exceed £50,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds £50,000:
for every £100, or fractional part of £100, of the consideration	£4.00
(vi) the amount or value of such consideration exceeds £50,000 but does not exceed £60,000 and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds £60,000:
for every £100, or fractional part of £100, of the consideration	£5.00
(vii) the case is of any other kind whatsoever not hereinbefore described:
for every £100, or fractional part of £1001 of the consideration	£6.00
(b) where the consideration or any part of the consideration is any rent, in respect of such consideration, whether reserved as a yearly rent or otherwise:
(i) if the term does not exceed 35 years or is indefinite:
for every £100, or fractional part of £100, of the average annual rent	£1.00
(ii) if the term exceeds 35 years but does not exceed 100 years for every £100, or fractional part of £100, of the average annual rent	£6.00
(iii) if the term exceeds 100 years:
for every £100, or fractional part of £100, of the average annual rent	£12.00
(4) Lease made subsequently to, and in conformity with, an agreement duly stamped under the provisions of section 75 of the Stamp Act, 1891	£1.00
(5) Of any other kind whatsoever not hereinbefore described	£1.00

PART III

Mortgages, Bonds, Debentures and certain Covenants and Warrants of Attorney

"MORTGAGE, BOND, DEBENTURE, COVENANT (except a marketable security) and WARRANT OF ATTORNEY to confess and enter up judgement.
(1) Being the only or principal or primary security (other than an equitable mortgage) for the payment or repayment of money:
where the amount secured does not exceed £20,000	Exempt
where the amount secured exceeds £20,000:
for every £1,000, or fractional part of £1,000, of the amount secured	£1.00
Provided that the duty so charged shall not exceed £500.
(2) Being a collateral, or auxiliary, or additional, or substituted security (other than an equitable mortgage), or by way of further assurance for the above-mentioned purpose where the principal or primary security is duly stamped:
where the amount secured does not exceed £20,000	Exempt
where the amount secured exceeds £20,000	£10.00
(3) Being an equitable mortgage:
where the amount secured exceeds £20,000:	Exempt
where the amount secured does not exceed £20,000
for every £1,000, or fractional part of £1,000, of the amount secured	50p
Provided that the duty so charged shall not exceed £500.
(4) TRANSFER, ASSIGNMENT or DISPOSITION of any mortgage, bond, debenture, or covenant (except a marketable security) or of any money or stock secured by any such instrument, or by any warrant of attorney to enter up judgement, or by any judgement:
where the amount secured does not exceed £20,000	Exempt
where the amount secured exceeds £20,000: for every £1,000, or fractional part of £1,000, of the amount transferred, assigned, or disposed, exclusive of interest which is not in arrear	50p
Provided that the duty so charged shall not exceed £500;
where any further money is added to the money already secured	The same duty as a principal security for such further money.

⁽¹⁾ O.J. No. L 93 of 30.3.1985, p. 1.

⁽²⁾ O.J. No. L 185 of 15.7.1988, p.9.

* O.J. No. L 225 of 20.8.1990, p.6.

Irish Legislation

Finance Act, 1991