Finance Act, 1963

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.

[30th July, 1963.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

PART I INCOME TAX

Income tax and sur-tax for the year 1963-64.

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1963, at the rate of six shillings and four pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1963, shall be charged in respect of the income of any individual the total of which from all sources exceeds two thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1962.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1963, in relation to income tax and sur-tax shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1963.

Exemption of bodies established for promotion of athletic or amateur games or sports.

2.—Exemption shall be granted from income tax in respect of so much of the income of any body of persons established for the sole purpose of promoting athletic or amateur games or sports as is shown to the satisfaction of the Revenue Commissioners to be income which has been or will be applied to that purpose.

Amendment of section 34 of Income Tax Act, 1918.

3.—As respects tax for the year 1963-64 or a subsequent year of assessment—

( a ) the following section shall be substituted for section 34 of the Income Tax Act, 1918:

"34.—(1) Subject to the provisions of this section, where in any year of assessment any person has sustained a loss in any trade, profession, employment or vocation, carried on by him either solely or in partnership, or in the occupation of lands for the purposes of husbandry only, or in the occupation of woodlands in respect of which he has elected to be charged to tax under Schedule D, he shall be entitled, on making a claim in that behalf, to such repayment of tax as is necessary to secure that the aggregate amount of tax for the year ultimately borne by him will not exceed the amount which would have been borne by him if his income had been reduced by the amount of the loss.

(2) ( a ) For the purposes of subsection (1) of this section the amount of tax which would have been borne if income had been reduced by the amount of a loss shall be computed—

(i) where the loss has been sustained by an individual, on the basis of treating the loss as reducing first the appropriate income of the individual, then the other income of the individual, then the appropriate income of the individual's wife or husband and then the other income of the individual's wife or husband, and

(ii) where the loss has been sustained in a trade carried on by a body corporate, on the basis of treating the loss as reducing first the income of the body corporate from profits or gains of the trade in which the loss was sustained and then the other income of the body corporate.

( b ) For the purposes of subparagraph (i) of paragraph (a) of this subsection, appropriate income' means either earned or unearned income according as income arising during the same period as the loss to the person sustaining it from the same activity would have been that person's earned or unearned income.

(3) Except as is otherwise provided by paragraph (2) of Rule 15 of the Rules applicable to Cases I and II of Schedule D, the amount of a loss sustained in an activity shall, for the purposes of this section, be computed in like manner as profits or gains arising or accruing from the activity would be computed under the relevant provisions of the Income Tax Acts.

(4) Where repayment has been made to a person for any year under this section—

( a ) no portion of the loss which, in the computation of the repayment, was treated as reducing his income shall be taken into account in computing the amount of an assessment for any subsequent year, and

( b ) so much of the loss as was required, by subsection (2) of this section, to be treated as reducing income of a particular class or income from a particular source shall, for all the purposes of the Income Tax Acts, be regarded as a deduction to be made from income of that class or from income from that source, as the case may be, in computing the person's total income for the year.

(5) Any claim to repayment under this section shall be made, in a form prescribed by the Revenue Commissioners, not later than two years after the end of the year of assessment and shall be made to, and determined by, the inspector of taxes; but any person aggrieved by any determination of the inspector of taxes on any such claim may, on giving notice in writing to the said inspector within twenty-one days after notification to him of the determination, appeal to the Special Commissioners.

(6) The Special Commissioners shall hear and determine an appeal to them under subsection (5) of this section as if it were an appeal to them against an assessment to income tax and the provisions of the Income Tax Acts relating to the re-hearing of an appeal or the statement of a case for the opinion of the High Court on a point of law, shall, with the necessary modifications, apply accordingly.";

( b ) paragraph (2) of Rule 15 of the Rules applicable to Cases I and II of Schedule D shall have effect subject to the substitution of "repayment of tax under section 34 of" for "an adjustment of its liability by reference to the loss and to the aggregate amount of its income under the provisions contained in";

( c ) section 4 of the Finance Act, 1943 , shall not have effect;

( d ) subsection (1) of section 52 of the Finance Act, 1958 , and subsection (1) of section 9 of the Finance Act, 1959 , shall have effect subject to the deletion of "and the aggregate amount of his income" in each subsection.

Amendment of section 39 of Income Tax Act, 1918.

4.—Subsection (2) of section 39 of the Income Tax Act, 1918, is hereby amended by the substitution of "six hundred pounds by way of gross sum" and "two hundred and fifty pounds a year by way of annuity" for "three hundred pounds by way of gross sum" and "one hundred and thirty pounds a year by way of annuity" respectively.

Option to treat capital allowances as creating or augmenting loss in trade, etc.

5.—(1) In this section—

"balancing charges" means balancing charges under Part V of the Finance Act, 1959 ;

"capital allowances" means allowances, other than allowances falling to be made in computing profits or gains, under Rule 6 of the Rules applicable to Cases I and II of Schedule D, section 5 or section 6 of the Finance Act, 1946 , Part V of the Finance Act, 1956 , Part IV of the Finance (Miscellaneous Provisions) Act, 1956 , Part V of the Finance Act, 1957 , or Part V or section 74 of the Finance Act, 1959 ;

"year of claim" means, in relation to any claim under section 34 of the Income Tax Act, 1918, the year of assessment for which the claim is made.

(2) Subject to the provisions of this section, any claim made under section 34 of the Income Tax Act, 1918, for relief in respect of a loss sustained in any trade, being a claim in the case of which the year of claim is the year 1963-64 or a subsequent year of assessment, may require the amount of the loss to be determined as if an amount equal to the capital allowances for the year of assessment for which the year of claim is the basis year were to be deducted in computing the profits or gains or losses of the trade in the year of claim and a claim may be so made notwithstanding that apart from those allowances a loss has not been sustained in the trade in the year of claim.

(3) Where on any claim made by virtue of this section relief is not given under the said section 34 for the full amount of the loss determined as aforesaid, the relief shall be referred as far as may be to the loss sustained in the trade rather than to the capital allowances in respect of the trade.

(4) For the purposes of this section—

( a ) where the end of the basis period for a year of assessment falls in or coincides with the end of any year of assessment, that year is the basis year for the first mentioned year of assessment, but so that if a year of assessment would under the foregoing provision be the basis year both for that year itself and another year of assessment, it shall be the basis year for the year itself and not for the other year;

( b ) any reference to capital allowances or balancing charges for a year of assessment shall be construed as a reference to those falling to be made in charging the profits or gains of the trade for that year, excluding, in the case of allowances, amounts carried forward from an earlier year;

( c ) effect shall be deemed to be given in charging the profits or gains of the trade for a year of assessment to allowances carried forward from an earlier year before it is given to allowances for the year of assessment; and

( d ) any reference to an amount of capital allowances non-effective in a year of assessment shall be construed as referring to the amount to which by reason of an insufficiency of profits or gains effect cannot be given in charging the profits or gains of the trade for that year.

In paragraph (a) of this subsection "the basis period for a year of assessment" means in relation to any trade the period on the profits or gains of which income tax for that year falls to be finally computed under Case I of Schedule D in respect of the trade or, where, by virtue of any Act, the profits or gains of any other period are to be taken to be the profits or gains of the said period, that other period.

(5) The capital allowances for any year of assessment shall be taken into account under subsection (2) of this section only if and so far as they are not required to offset balancing charges for the year; and, where the capital allowances taken into account are allowances for the year of claim, relief shall not be given by reference to those allowances in respect of an amount greater than the amount non-effective in the year of claim.

(6) For the purposes of subsection (5) of this section, the capital allowances for any year of assessment shall be treated as required to offset balancing charges for the year up to the amount on which the balancing charges fall to be made after deducting from that amount the amount, if any, of capital allowances for earlier years which is carried forward to that year and would, without the balancing charges, be non-effective in that year.

(7) Subject to subsection (8) of this section, where for any year of claim relief is given under the said section 34 by reference to any capital allowances, then, for all the purposes of the Income Tax Acts, effect shall be deemed to have been given to those allowances up to the amount in respect of which relief is so given, and any relief previously given for a subsequent year on the basis that effect had not been given to the allowances as aforesaid shall be adjusted, where necessary, by additional assessment.

(8) Where in any year of assessment a trade is permanently discontinued, or is treated, for the purposes of Rule 11 of the Rules applicable to Cases I and II of Schedule D, as permanently discontinued, and immediately before the discontinuance the trade was being carried on in partnership, then, notwithstanding the last foregoing subsection, for the purposes of any claim for relief made by virtue of section 4 of the Finance Act, 1960 , and relating to that discontinuance, effect shall not be deemed to have been given either—

( a ) to any part of the capital allowances falling to be made in charging the profits or gains of the trade for that year by reason of relief given under the said section 34 by reference to those allowances; or

( b ) to any part of the capital allowances falling to be made in charging the profits or gains of the trade for the preceding year by reason of relief so given by reference to them, in so far as that relief must be referred to the part of the allowances apportionable to the part of the year within twelve months of the discontinuance on an apportionment made by reference to the comparative lengths of the two parts of the year;

but, where the same partner claims relief both under the said section 34 and under the said section 4 in respect of the same allowances, the total amount for which relief is to be given to him by reference thereto shall not exceed the greater of the amounts for which, apart from any deficiency of income, relief might have been given under either section separately, and the total amount for which relief is to be given to all the partners under those sections in respect of any allowances shall not in any event exceed the amount of the allowances to which effect has not been given apart from those sections.

(9) Where a person claiming relief under the said section 34 has, since the end of the year of claim, carried on the trade in question in partnership, effect shall not be given to this section in relation to that claim, except with the written consent of, or of the personal representatives of, every other person who has been engaged in carrying on the trade between the end of that year and the making of the claim:

Provided that where the claim is for a loss sustained before an event treated as the permanent discontinuance of the trade, this subsection shall not require the consent of any person as having been so engaged since that discontinuance or as the personal representative of such a person.

(10) Relief from tax may be given by virtue of subsection (2) of this section by reference to capital allowances for a year of assessment before the passing of any Act imposing income tax for that year, as if income tax had been imposed for the year without alteration; but if relief given to a person by virtue of that sub-section for any year of claim is affected by a subsequent alteration of the law, or by any discontinuance of the trade or other event occurring after the end of the year, any necessary adjustment may be made, and so much of any repayment of tax as exceeded the amount repayable in the events that happened shall, if not otherwise made good, be recovered from the person by assessment under Case VI of Schedule D; and for the purpose of such assessment the amount of capital allowances by reference to which the repayment was made, or an appropriate part of that amount, shall be deemed to be income chargeable under the said Case VI for the year of claim.

(11) This section applies, with any necessary adaptations, in relation to a profession, employment or vocation and in relation to the occupation of lands for the purposes of husbandry only or of woodlands, where, in either case, profits or gains arising from the occupation are, for the year of claim and the year of assessment for which the year of claim is the basis year, chargeable under Schedule D, as it applies in relation to a trade.

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

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

( a ) the person shall when required to do so by a notice in writing served on him by an inspector of taxes prepare and deliver to the inspector, within the time limited by the notice, a statement of the profits or gains on which he would have been chargeable for the year of assessment if he had made an election in relation to the lands under Rule 5 of the Rules applicable to Schedule B;

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

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

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

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

( d ) where the person fails to do anything which he is required to do by a notice under paragraph (b) of this subsection, the Income Tax Acts shall apply as if he had duly made, under Rule, 5 of the Rules applicable to Schedule B, an election in relation to the lands by notice delivered immediately after the commencement of the year of assessment;

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

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

(i) the Income Tax Acts shall, subject to the next subparagraph, apply as if the person had duly made, under Rule 5 of the Rules applicable to Schedule B, an election in relation to the lands by notice delivered immediately after the commencement of the year of assessment,

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

(2) ( a ) This section applies to—

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

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

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

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

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

( c ) In this subsection—

"company" means a company within the meaning of the Companies Acts, 1908 to 1959;

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

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

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

7.—Where a superannuation scheme is established in connection with a trade or undertaking or a superannuation scheme so established is altered and the person by whom the trade or undertaking is carried on makes, on or after the 6th day of April, 1963, a payment in respect of expenses (including a payment in respect of professional fees, but not including a payment by way of contribution towards the cost of providing the benefits payable under the scheme) in connection with such establishment or alteration, then if the scheme or, as the case may be, the altered scheme is—

( a ) operated through a fund approved, whether in whole or in part, by the Revenue Commissioners for the purposes of section 32 of the Finance Act, 1921,

( b ) approved, whether in whole or in part, by the Revenue Commissioners under section 34 of the Finance Act, 1958 , or

( c ) an excepted scheme within the meaning of subsection (2) of section 33 of the Finance Act, 1958 ,

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

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

Annual payment payable out of dividend from which income tax is not deductible or is deductible at reduced rate.

8.—(1) Where the whole or any part of any annual payment is payable out of a dividend from which, by virtue of section 7 of the Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 , or section 9 or section 15 of the Finance (Miscellaneous Provisions) Act, 1956 , income tax either is not deductible or is deductible at a reduced rate—

( a ) a payment of the annual payment, or that part thereof, as the case may be, shall be treated as not having been paid out of profits or gains brought into charge to tax and, subject to the next paragraph, Rule 21 of the General Rules shall apply accordingly,

( b ) the amount of tax recoverable from the payer shall be tax on the payment which he has made calculated—

(i) if income tax was not deductible from the dividend—at the standard rate of income tax, and

(ii) if income tax was deductible from the dividend at a reduced rate—at a rate arrived at by deducting from the standard rate of income tax the rate of tax deductible from the dividend.

(2) In the foregoing subsection "annual payment" means any payment from which, apart from any insufficiency of profits or gains of the person making it, tax is deductible under Rule 19 of the General Rules.

Amendment of Rule 21 of General Rules.

9.—(1) Rule 21 of the General Rules is hereby amended by the substitution of the following paragraphs for paragraph (2):

"(2) Where any such payment as aforesaid is made by or through any person, that person shall forthwith deliver to the Revenue Commissioners an account of the payment, or of so much thereof as is not made out of profits or gains brought into charge, and of the tax deducted out of the payment or out of that part thereof, and the inspector shall assess and charge the payment of which an account is so delivered on that person.

(2A) The inspector may, where any person has made default in delivering an account required by this Rule, or where he is not satisfied with the account so delivered, make an assessment according to the best of his judgment.

(2B) In paragraph (2) and (2A) of this Rule "the inspector" means such inspector of taxes as the Revenue Commissioners may direct.

(2C) All the provisions of the Income Tax Acts relating—

( a ) to persons who are to be chargeable with, income tax and to income tax assessments;

( b ) to appeals against such assessments;

( c ) to the collection and recovery of income tax; and

( d ) to cases to be stated for the opinion of the High court;

shall, so far as they are applicable, apply to the charge, assessment, collection and recovery of income tax under this Rule."

(2) The provisions of the said Rule 21 as amended by subsection (1) of this section shall, subject to any necessary modifications, apply in the case of a payment which has been made before the passing of this Act unless at such passing the tax deducted out of the payment stands paid to the Revenue Commissioners.

Amount of assessment under Rule 21 to be allowed as a loss for certain purposes.

10.—(1) Subject to the provisions of this section, where a person has been assessed to tax for the year 1963-64 or a subsequent year of assessment under Rule 21 of the General Rules, in respect of a payment made wholly and exclusively for the purposes of a trade, profession or vocation, the amount on which tax has been paid under that assessment shall, for the purposes of section 14 of the Finance Act, 1929 , and section 4 of the Finance Act, 1960 , be treated as though it were a loss sustained in that trade, profession or vocation and relief in respect thereof shall be allowed accordingly:

Provided that no relief shall be allowed under this section in respect of any such payment or any part of such payment which is not ultimately borne by the person assessed or which is charged to capital.

(2) This section shall not apply to any sum assessed under the said Rule 21 by virtue of section 13 of the Finance Act, 1950 , Part V of the Finance Act, 1958 , or section 50 of the Finance Act, 1959 , or section 8 or paragraph (b) of subsection (3) of section 71 of this Act.

Amendment of section 21 of Finance Act, 1920.

11.—(1) Subsection (3) of section 21 of the Finance Act, 1920, is hereby amended by the substitution of "of two hundred pounds a year or more and, where the child in respect of whom the deduction is to be allowed is entitled in his own right to an income exceeding eighty pounds a year, the deduction, instead of being one hundred and twenty pounds, shall be that amount reduced by the amount of the excess" for "exceeding eighty pounds a year".

(2) Subsection (1) of this section shall come into operation on the 6th day of April, 1964.

Amendment of section 22 of Finance Act, 1920.

12.—(1) Subsection (1) of section 22 of the Finance Act, 1920, is hereby amended by the substitution of "one hundred and twenty pounds" for "one hundred and ten pounds".

(2) ( a ) Subsection (1) of section 22 of the Finance Act, 1920, is hereby amended—

(i) by the substitution of "is less than one hundred and eighty pounds" for "does not exceed one hundred and twenty pounds",

(ii) by the insertion of "a person whose total income from all sources is less than one hundred and eighty pounds a year and being" before "a son or daughter",

(iii) by the addition of the following proviso: "Provided that each of the foregoing provisions of this subsection shall have effect, in a case in which the total income from all sources of the person in respect of whom the deduction is to be made exceeds ore hundred and twenty pounds a year, as if, instead of specifying a deduction of sixty pounds, it specified a deduction of that amount reduced by the amount of the excess."

( b ) Paragraph (a)of this subsection shall come into operation on the 6th day of April, 1964.

Amendment of section 8 of Finance Act, 1924 .

13.—(1) Section 8 of the Finance Act, 1924 , and that section as applied by subsection (9) of section 17 of the Finance Act, 1929 , shall have effect subject to the substitution in subsection (1) of "six years after the end of the year of assessment within" for "three years after the end of the year of assessment for".

(2) Subsection (1) of this section shall not apply in relation to an assessment for a year earlier than the year 1960-61 if it was made before the 6th day of April, 1963.

Amendment of section 227 of Income Tax Act, 1918.

14.—Section 227 of the Income Tax Act, 1918, is hereby amended by the insertion at the end of the section of "and any person shall also be liable as aforesaid if he knowingly and wilfully aids, abets, assists, incites or induces another person to make or deliver a false or fraudulent account, return, list, declaration or statement with reference to property, profits or gains or to tax".

Time for certain summary proceedings.

15.—Notwithstanding subsection (4) of section 10 of the Petty Sessions (Ireland) Act, 1851, summary proceedings under section 227 of the Income Tax Act, 1918, section 7 of the Finance (No. 2) Act, 1959 , or section 9 or section 31 of the Finance Act, 1960 , may be instituted within three years from the date of the committing of the offence or incurring of the penalty (as the case may be).

Power to require production of accounts and books.

16.—(1) Where a person who has been duly required to deliver a statement of the profits or gains, arising to him from any trade, profession or vocation fails to deliver the statement, or where the Revenue Commissioners are not satisfied with the statement delivered by any such person, the Revenue Commissioners may serve on that person a notice in writing or notices in writing requiring him to do any of the following things, that is to say—

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

( b ) to make available, within such time as may be specified in the notice, for inspection by an inspector of taxes or by any officer authorised by the Revenue Commissioners, all such books, accounts and documents in his possession or power as may be specified or described in the notice, being books, accounts and documents which contain information as to transactions of the trade, profession or vocation.

(2) The inspector of taxes or other officer may take copies of, or extracts from, any books, accounts or documents made available for his inspection under this section.

Power to obtain information as to interest paid or credited without deduction of tax.

17.—(1) Every person carrying on a trade or business who, in the ordinary course of the operations thereof, receives or retains money in such circumstances that interest becomes payable thereon which is paid or credited without deduction of income tax, and, in particular, every person carrying on the trade or business of banking, shall, if required to do so, by notice from an inspector of taxes, make and deliver to the said inspector of taxes, within the time specified in the notice, a return of all interest paid or credited by him as aforesaid during a year specified in the notice in the course of his trade or business or any such part of his trade or business as may be so specified, giving the names and addresses of the persons to whom the interest was paid or credited and stating, in each case, the amount of the interest:

Provided that—

( a ) no interest paid or credited to any person shall be required to be included in any such return if the total amount of the interest paid or credited to that person which would otherwise have fallen to be included in the return does not exceed £15; and

( b ) the year specified in a notice under this subsection shall not be a year ending more than three years before the date of the service of the notice.

(2) Without prejudice to the generality of so much of subsection (1) of this section as enables different notices to be served thereunder in relation to different parts of a trade or business, separate notices may be served under that subsection as respects the transactions carried on at any branch or branches respectively specified in the notices, and any such separate notice shall, if served on the manager or other person in charge of the branch or branches in question, be deemed to have been duly served on the person carrying on the trade or business; and where such a separate notice is so served as respects the transactions carried on at any branch or branches, any notice subsequently served under the said subsection (1) on the person carrying on the trade or business shall not be deemed to extend to any transaction to which the said separate notice extends.

(3) This section shall, with any necessary adaptations, apply in relation to the Post Office Savings Bank as if it were a trade or business carried on by the Minister for Posts and Telegraphs.

This subsection shall have effect notwithstanding anything in section 4 of the Post Office Savings Bank Act, 1861, but save as aforesaid that section shall remain in full force and effect.

(4) The foregoing provisions of this section shall apply to interest paid or credited on or at any time after the 6th day of April, 1962, and only to money received or retained in the State, and, if a person to whom any interest is paid or credited in respect of any money received or retained in the State by notice in writing served on the person paying or crediting the interest—

( a ) declares that the person who was beneficially entitled to that interest when it was paid or credited was not then ordinarily resident in the State, and

( b ) requests that the interest shall not be included in any return under this section,

the person paying or crediting the interest shall not be required to include the interest in any such return.

Amendment of Rule 18 (2) of General Rules and section 8 (4) of Finance Act, 1925 .

18.—(1) Paragraph (2) of Rule 18 of the General Rules is hereby amended by the insertion at the end of the paragraph of "in a case in which the grant of probate or letters of administration was made in that year, and no such assessment shall be made later than two years after the expiration of the year of assessment in which such grant was made in any other case, but the foregoing provisions of this paragraph shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year of assessment in which the deceased person died, such assessment may be made at any time before the expiration of two years after the end of the year of assessment in which the corrective affidavit was lodged".

(2) Subsection (4) of section 8 of the Finance Act, 1925 , is hereby amended by the insertion at the end of the subsection of "in a case in which the grant of probate or letters of administration was made in that year, and none of such acts and things may be done later than the end of the second year after the year of assessment in which such grant was made in any other case, but the foregoing provisions of this subsection shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year of assessment in which the deceased person died, any such act or thing may be done at any time before the expiration of two years after the end of the year of assessment in which the corrective affidavit was lodged".

(3) Neither of the foregoing subsections of this section shall apply in a case in which the deceased person died before the 6th day of April, 1960, and the executor or administrator had fully administered the estate and distributed the assets of the deceased person before the 23rd day of April, 1963.

Amendment of section 7 of Finance Act, 1935 .

19.—In relation to a company licensed under the Insurance Act, 1936 , to carry on assurance business, section 7 of the Finance Act, 1935 , shall have effect as if paragraph (e) contained in subsection (1) thereof were amended by the deletion of subparagraph (ii).

Amendment of section 12 of Finance (Miscellaneous Provisions) Act, 1956 .

20.—Subsection (6) of section 12 of the Finance (Miscellaneous Provisions) Act, 1956 , shall apply to each of the five consecutive years of assessment, the first of which is the year of assessment immediately following the company's last year of claim for the purposes of that subsection within the meaning of section 10 of that Act, as if—

( a ) each of those years were a year of claim, and

( b ) for "reduced by twenty-five per cent." in paragraph (a) of the said subsection (6) there were substituted—

(i) in the case of the first of those years, "reduced by twenty per cent.",

(ii) in the case of the second of those years, "reduced by fifteen per cent.",

(iii) in the case of the third of those years, "reduced by ten per cent.",

(iv) in the case of the fourth and fifth of those years, "reduced by five per cent.".

Aggregation of assessments.

21.—(1) Where two or more assessments fall to be made on a person under Schedule A, B, D or E, or under two or more of those Schedules,—

( a ) the tax in the assessments may be stated in one sum,

( b ) as regards Schedule A or B in a case in which there are two or more tenements or rateable hereditaments, one assessment may be made on the total of the annual or assessable values,

and the notice of assessment may be stated correspondingly, but particulars of the annual or assessable values comprised in one assessment made pursuant to paragraph (b) of this subsection shall, on request, be given by the inspector of taxes.

(2) A notice of appeal in a case in which subsection (1) of this section applies must, to be valid, indicate each assessment appealed against.

(3) Pending the determination of an appeal against any one or more of such assessments as are referred to in subsection (1) of this section, an amount of tax being a portion of the one sum referred to in that subsection shall be payable on the due date or dates and shall be the amount which results when the appropriate personal reliefs are deducted from the assessments not under appeal or allowed from the tax charged in those assessments (as may be appropriate).

(4) The tax stated in one sum under subsection (1) or the amount payable under subsection (3) of this section shall for the purposes of section 14 of the Finance Act, 1962 , be deemed to be tax charged by an assessment to income tax.

(5) If for any of the purposes of the Income Tax Acts, other than subsection (3) of this section, it becomes necessary to determine what amount of the tax charged is applicable to any one of two or more assessments referred to in subsection (1) of this section—

( a ) a certificate from the inspector of taxes indicating the manner in which the deductions, allowances or reliefs were allocated and stating the separate amounts of tax, if any, and the instalments thereof applicable to any one or more assessments or to each assessment shall be sufficient evidence of the charge to tax in and by each such assessment,

( b ) where an assessment to which that certificate relates is made under paragraph (b) of subsection (1) of this section, the inspector of taxes may further certify what portion of the amount of the tax charged in and by that assessment is applicable to any of the annual or assessable values, and for the purposes of the Income Tax Acts that portion shall be deemed to be tax charged in and by an assessment.

(6) Notwithstanding the making of one assessment pursuant to paragraph (b) of subsection (1) of this section, the provisions of the Income Tax Acts, other than this section, relating to assessments under Schedule A or B (as the case may be) shall continue to apply as if the tenements or rateable hereditaments had been assessed separately.

(7) In this section "personal reliefs" means any relief under section 32 of the Income Tax Act, 1918, under sections 16, 18, 19, 20, 21 and 22 of the Finance Act, 1920, under section 4 of the Finance Act, 1951 , or under section 17 of the Finance (No. 2) Act, 1959 .

Particulars of sums to be collected.

22.—(1) After assessments to income tax and sur-tax have been made, the inspectors of taxes shall transmit particulars of the sums to be collected to the Collector-General for collection, and references in the Income Tax Acts to duplicates of assessments delivered to collectors shall be construed as including references to particulars so transmitted.

(2) Subsection (1) of this section shall not apply to sums to be collected in respect of assessments to income tax made before the 6th day of April, 1964, where particulars of the sums are contained in duplicates of assessments delivered to the collectors of taxes appointed under section 7 of the Finance Act, 1934 .

Collector-General.

23.—(1) A collector, to be known as the Collector-General, shall be appointed by the Revenue Commissioners from their officers and shall hold office as the Collector-General at their will and pleasure.

(2) The Collector-General shall collect and levy the tax from time to time charged in all assessments to income tax and sur-tax of which particulars have been transmitted to him under the preceding section.

(3) ( a ) The Revenue Commissioners may nominate persons to exercise on behalf of the Collector-General and at his direction the powers contained in sections 162, 164 and 199 of the Income Tax Act, 1918.

( b ) Those powers, as well as being exercisable by the Collector-General, shall also be exercisable on his behalf and at his direction by persons nominated under this subsection.

( c ) A person shall not be nominated under this subsection unless he is an officer or employee of the Revenue Commissioners.

(4) Paragraph (c)of subsection (1) of section 190 of the Income Tax Act, 1918, and subsection (3) of section 7 of the Finance Act, 1934 , are each hereby amended by the insertion of "or Revenue Commissioners" after "Special Commissioners".

(5) Subsection (1) of this section shall have effect notwithstanding section 7 of the Finance Act, 1934 , but shall not affect the operation of that section.

(6) Sections 172, 175, 176, 177, 178, 179, 180 and 184 of the Income Tax Act, 1918, shall not apply to the Collector-General.

(7) If and so long as the office created by subsection (1) of this section is vacant or the holder of that office is unable through illness, absence or other cause to fulfil his duties, a person nominated in that behalf by the Revenue Commissioners from their officers shall act as the Collector-General, and any reference in this or any other Act to the Collector-General shall be construed as including, where appropriate, a reference to a person nominated under this subsection.

(8) The Revenue Commissioners may revoke a nomination under this section.

Amendment of section 187 (2) and section 196 (1) of Income Tax Act, 1918.

24.—(1) Subsection (2) of section 187 of the Income Tax Act, 1918, is hereby amended by the substitution of "inspector of taxes" for "special commissioners".

(2) Subsection (1) of section 196 of the Income Tax Act, 1918, is hereby amended by the substitution of "judge of the Circuit Court in whose circuit is situate, in the case of (a)a person who is not resident in the State, (b) the estate of a; deceased person, (c) an incapacitated person, or (d)a trust, the place where the assessment was made and, in any other case, the place to which the notice of assessment was addressed" for "recorder or county court judge, as the case may be, having jurisdiction in the place where the assessment was made".

Change of date on which sur-tax is due and payable.

25.—(1) Subsection (2) of section 3 of the Finance Act, 1928 , is hereby amended by the substitution of "on the first day of January in the year of assessment" for "on or before the first day of January next after the end of the year of assessment" and by the substitution of "made" for "signed and allowed" in both places where the latter words occur in the subsection.

(2) ( a ) Subsections (2) and (3) of section 11 of the Finance Act, 1961 , are hereby amended by the substitution of "year of assessment" for "preceding year" wherever the latter words occur.

( b ) Accordingly—

(i) notices given before the commencement of this Act for the purposes of that section stating that income tax will be deductible from emoluments paid in the year 1963-64, and

(ii) notices so given stating that it is not practicable to give effect to an election for such deductions,

shall have effect as if they were notices given for the purposes of that section as amended by this section.

(3) Where sur-tax is payable by a person for the year 1962-63 and for the year 1963-64, the amount of the sur-tax for the year 1962-63 shall, if it exceeds the sur-tax payable for the year 1963-64, be reduced by an amount equal to the sur-tax payable for the year 1963-64, and shall, if less than, or equal to, the sur-tax payable for the year 1963-64, be remitted.

Assessment and charge of sur-tax by inspectors of taxes.

26.—(1) References in subsections (1), (2) and (5) of section 7 of the Income Tax Act, 1918, and subsection (1) of section 22 of the Finance Act, 1922, to the special commissioners shall be construed as references to an inspector of taxes and the reference in subsection (3) of the said section 7 to the special commissioners shall be construed as a reference to the Revenue Commissioners.

(2) The following subsection is hereby substituted for subsection (7) of section 7 of the Income Tax Act, 1918:

"(7) An inspector of taxes may amend any assessment made under this section (including an assessment made before the 6th day of April, 1963) or make an assessment or an additional assessment, at any time in respect of any year of assessment (including a year of assessment earlier than the year 1963-64, but not earlier than the year 1922-23)."

(3) Subsection (5) of section 54 of the Finance Act, 1958 , is hereby amended by the insertion in paragraph (a)of "or sur-tax" after "income tax".

(4) Subsection (6) of section 14 of the Finance Act, 1962 , is hereby amended by the insertion after "income tax" of "or sur-tax" and by the deletion of "sur-tax or".

Estimation of certain amounts.

27.—(1) Where—

( a ) the total income of an individual from all sources includes income from any source or sources which is to be computed on the basis of the actual amounts receivable in the year of assessment or where any deductions allowable on account of any annual sums paid out of the property or profits of an individual are to be allowed as deductions in respect of the year in which they are payable, and

( b ) an assessment to sur-tax is being made before the end of the year of assessment to which such assessment to surtax relates,

the inspector of taxes in making the assessment shall, in computing the total amount of income assessable to sur-tax, estimate the amount of income from each such source or the amount of any such allowable deductions and, in making any such estimate, he shall have due regard to any corresponding amount of income or allowable deductions in the year immediately preceding the year of assessment.

(2) Where—

( a ) an estimate has been made under subsection (1) of this section,

( b ) notice of an appeal against the assessment to sur-tax has not been given, and

( c ) the person assessed gives to the inspector of taxes within a period of one year from the end of the year of assessment particulars of the correct amount of the income or deductions in respect of which the estimate was made,

the inspector of taxes shall adjust the assessment by reference to the difference between the correct amount of income assessable to sur-tax and the amount of the assessment, and any amount of surtax overpaid shall be repaid.

Payment of reduced amount of sur-tax pending determination of appeal.

28.—Where an appeal relating to sur-tax is taken and the Special Commissioners are of opinion that the amount of sur-tax charged in any assessment exceeds the amount of sur-tax which will be payable when the appeal is finally determined—

( a ) the Special Commissioners shall order payment of such reduced amount of sur-tax as in their opinion is just, having regard to the information available,

( b ) that reduced amount of sur-tax shall be collected and paid in all respects as if it was sur-tax charged in an assessment which had become final and conclusive,

( c ) when the amount of sur-tax correctly chargeable has been finally determined, any balance of sur-tax chargeable in accordance with the determination shall be payable or any tax overpaid shall be repaid, as the case may require.

PART II CUSTOMS AND EXCISE

Temporary importation of motor vehicles without payment of customs duty.

29.—(1) The Minister for Finance may make regulations providing for the temporary importation of motor vehicles without payment of customs duty, in such circumstances and subject to such conditions as may be specified in the regulations.

(2) Where a person contravenes, whether by act or omission, a condition under a regulation under this section, such person, without prejudice to any, other penalty to which he may be liable, shall be guilty of an offence under the Customs Acts and shall be liable on summary conviction thereof to a penalty of one hundred pounds; and the motor vehicle shall be liable to forfeiture and the offender may either be detained or proceeded against by summons.

(3) For the purposes of this section "motor vehicle" means a mechanically propelled vehicle (including a bicycle and a tricycle) which derives its motive power from an internal combustion engine or from an electric motor and includes any vehicle which is designed, constructed and suitable for traction on a road by a mechanically propelled vehicle.

Deferment of payment of beer duty.

30.—The power under section 16 of the Inland Revenue Act, 1880, and the Finance Act, 1918, to defer the time for payment of beer duty may, in the case of lager beer which is kept for a period of at least three months in the premises in which it is brewed, be exercised so as to permit payment of duty on the beer to be deferred to a date not later than the 25th day of the fourth month after the month in which the duty was charged.

Relief by order from customs duties.

31.—(1) The Minister for Finance, whenever he considers that f it is necessary or expedient to relieve any goods from customs duties chargeable with a view to conforming with an international convention or agreement to which the State is a party and which relates to matters other than commercial relations, may by order provide for the relief of those goods from all or any of those duties in such circumstances and subject to such conditions as may be specified in the order.

(2) An order made under this section may provide for the repayment of any duty paid on goods provided that the goods could, on the date on which the duty was paid, have been imported or delivered without payment of duty in accordance with an order made under this section.

(3) Where a person contravenes, whether by act or omission, a condition specified in an order under this section, such person, without prejudice to any other penalty to which he may be liable, shall be guilty of an offence under the Customs Acts and shall be liable on summary conviction thereof to a penalty of one hundred pounds; and any article in respect of which the offence was committed shall be liable to forfeiture and the offender may either be detained or proceeded against by summons.

(4) The Minister for Finance may by order revoke or amend an order made under this section.

(5) Every order made under this section shall be laid before each House of the Oireachtas as soon as may be after it is made and, 11 a resolution annulling the order is passed by either such House within the next twenty-one days upon which that House 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.

Amendment of section 2 (2) of Betting Act, 1931 .

32.—Subsection (2) of section 2 of the Betting Act, 1931 , is hereby amended by the substitution of "one hundred pounds" for "five hundred pounds".

Dog duty—general licence.

33.—(1) Any person who is liable to pay dog duty may elect to pay an annual sum of £10 in respect of such duty in lieu of the rate specified in subsection (1) of section 37 of the Finance Act, 1925 , and this amount shall be paid and collected through the Post Office by means of a general licence to be taken out annually by such person.

(2) Any person who pays a sum of £10 and takes out a general licence in accordance with this section shall be deemed to have paid dog duty in respect of all dogs kept by him during the whole or any part of the year to which the general licence relates.

(3) Any reference to a licence in section 38 of the Finance Act, 1925 , shall be construed as including a reference to a general licence provided for by this section.

(4) The foregoing subsections of this section shall come into operation on the 1st day of January, 1964.

Amendments relative to penalties.

34.—(1) Section 186 of the Customs Consolidation Act, 1876, is hereby amended by the substitution of "whichever is the greater" for "at the election of the Commissioners of Customs".

(2) Subsection (1) of section 3 of the Customs Act, 1956 , is hereby amended by the substitution of "whichever is the greater" for "at the election of the Revenue Commissioners".

(3) Where in any enactment of the Customs Acts, other than the enactments specified in the foregoing subsections of this section, there occurs a provision under which the Revenue Commissioners may elect between alternative penalties, the enactment shall have effect as if, instead of providing for such election, it provided for the imposition of the greater of the penalties.

(4) The following provisions shall, notwithstanding any other enactment, have effect in relation to an offence under section 186 of the Customs Consolidation Act, 1876, section 3 of the Customs Act, 1956 , or any enactment of the Customs Acts amended by subsection (3) of this section—

( a ) an estimated value of the goods shall be stated in the summons, information or charge,

( b ) the defendant may, by notice to the prosecution given before the commencement of the period of four days ending immediately before the date fixed for the hearing of the proceedings in the District Court (or given later by permission of that Court), challenge the estimated value,

( c ) if the estimated value is not challenged—

(i) in case treble the estimated value exceeds one hundred pounds, the offence shall be tried on indictment, and

(ii) at the trial of the offence, whether on indictment or summarily, the estimated value shall be taken conclusively as being the value of the goods, without any further evidence of that value,

( d ) if the estimated value is challenged—

(i) the justice of the District Court shall, before proceeding with the hearing, determine the value of the goods and the value so determined shall be final and not appealable,

(ii) where treble the value so determined exceeds one hundred pounds, the offence shall be tried on indictment,

(iii) at the trial of the offence, whether on indictment or summarily, the value so determined shall be taken conclusively as being the value of the goods, without any further evidence of that value,

( e ) in estimating or determining pursuant to this subsection the value of the goods, that value shall be taken as the price which the goods might reasonably be expected to have fetched, after payment of any duty chargeable thereon, if they had been sold on the open market at or about the date of the commission of the offence.

(5) An offence under any enactment of the Customs Acts, other than an enactment referred to in the foregoing subsections of this section, shall be tried on indictment if the penalty exceeds or may exceed one hundred pounds.

(6) Nothing in the foregoing subsections of this section shall prevent—

( a ) any action or other proceeding being brought under section 38 of the Finance Act, 1924 , or

( b ) any action, information or proceeding being brought in the High Court under section 11 of the Customs and Inland Revenue Act, 1879.

(7) In any application of subsection (4) of this section in relation to section 15 of the Tobacco Act, 1840, or section 106 of the Customs Consolidation Act, 1876—

( a ) the references in the subsection to the value of the goods shall be construed as references to the amount or value of drawback sought or claimed,

( b ) paragraph (e) of the subsection shall not apply.

(8) In every case tried on indictment by virtue of this section, the Attorney- General or the accused person shall be entitled on application to have the case sent forward to the Central Criminal court.

(9) The definition of "Justice" in section 284 of the Customs Consolidation Act, 1876, is hereby amended by the addition thereto of "and shall also, in relation to a case tried in the Central Criminal Court, be construed as including a reference to the judge of that Court".

(10) Section 232 of the Customs Consolidation Act, 1876, is hereby amended by the addition of the following sentence: "The requirement of committal contained in this section shall have effect subject to the proviso that there shall be a discretion to allow a period not exceeding three months for payment of the penalty and, where such a period is allowed, the offender shall not be committed if the penalty is paid during that period."

(11) Section 1 of the Probation of Offenders Act, 1907, shall not apply in relation to offences under the Customs Acts.

Confirmation of Order.

35.—The Imposition of Duties (No. 133) (Matches) Order, 1963, is hereby confirmed.

PART III DEATH DUTIES

Amendment of section 33 of Finance Act, 1935 .

36.—(1) Subsection (1) of section 33 of the Finance Act, 1935 , is hereby amended by the substitution of "one thousand pounds" for "five hundred pounds".

(2) This section shall have effect only in relation to Persons dying after the passing of this Act.

PART IV CORPOPATION PROFITS TAX

Increase of rate of corporation profits tax.

37.—(1) Section 35 of the Finance Act, 1941 , shall not apply or have effect in respect of any accounting period ending on or after the 1st day of January, 1962, and in lieu thereof, the following provisions shall, subject to the next subsection, apply and have effect in respect of every such accounting period:

(i) subsection (1) of section 52 of the Finance Act, 1920, shall be construed and have effect as if "fifteen per cent." were substituted for "five per cent.";

(ii) paragraph (a) of the proviso to that subsection shall be construed and have effect as if "tax shall be charged at a rate of five per cent. on so much of the profits as does not exceed two thousand five hundred pounds, and where the profits are profits arising in some shorter accounting period, tax shall be charged at a rate of five per cent. on such amount of the profits as bears to two thousand five hundred pounds" were substituted for "no tax shall be charged on the first five hundred pounds thereof, and where the profits are profits arising in some shorter accounting period, no tax shall be charged on such amount of the profits as bears to five hundred pounds";

(iii) paragraph (b) of that proviso shall be construed and have effect, as if "twenty per cent." were substituted for "ten per cent."

(2) In the case of any such accounting period which began before the 1st day of January, 1962, the profits shall be apportioned between the part of the period before that day and the part thereof after the 31st day of December, 1961, in proportion to the respective lengths of those parts and—

( a ) as respects so much of the profits as is apportioned to the first-mentioned part, corporation profits tax shall be charged thereon at the rate of ten per cent., provided that no tax shall be charged on so much thereof as bears to two thousand five hundred pounds the same proportion as that part bears to twelve months,

( b ) as respects so much of the profits as is apportioned to the second-mentioned part, corporation profits tax shall be charged thereon at the rate of fifteen per cent., provided that tax shall be charged at the rate of five per cent. on so much thereof as bears to two thousand five hundred pounds the same proportion as that part bears to twelve months,

( c ) the amount of tax payable by a company incorporated by or under the laws of the State shall in no case exceed the sum of the following amounts:

(i) the amount represented by fifteen per cent. of the balance of the profits apportioned to the first-mentioned part remaining after allowing such proportion of the deductions specified in paragraph (b) of the proviso to subsection (1) of section 52 of the Finance Act, 1920, as would be appropriate to that part if those deductions were apportioned in the same manner as the profits are required by this subsection to be apportioned, and

(ii) the amount represented by twenty per cent. of the balance of the profits apportioned to the second-mentioned part remaining after allowing such proportion of those deductions as would be appropriate to that part if those deductions were apportioned as aforesaid.

(3) ( a ) This subsection applies where the profits of the accounting period in question do not exceed—

(i) in case that accounting period is a period of twelve months—two thousand five hundred pounds, and

(ii) in case that accounting period is a period of less than twelve months—a sum which bears the same proportion to two thousand five hundred pounds as the length of the accounting period bears to twelve months.

( b ) One-half of so much of the corporation profits tax chargeable for an accounting period beginning before and ending on or after the 1st day of January, 1962, as is referable to the profits apportioned pursuant to subsection (2) of this section to the part of that accounting period after the 31st day of December, 1961, shall not be payable.

( c ) One-half of the corporation profits tax chargeable for an accounting period beginning on or after the 1st day of January, 1962, and ending on or before the 31st day of December, 1963, shall not be payable.

( d ) One-half of so much of the corporation profits tax chargeable for an accounting period beginning before and ending on or after the 1st day of January, 1964, as is referable to the profits apportioned to the part of that accounting period before that day shall not be payable.

( e ) For the purpose of paragraph (d) of this subsection, the profits apportioned to a part of an accounting period shall be the part of the profits of the accounting period apportioned to that part on an apportionment of the profits of the accounting period between that part and the remainder of the accounting period in proportion to the respective lengths of that part and such remainder.

(4) ( a ) Where the profits of an accounting period mentioned in paragraph (c) of the immediately preceding subsection exceed the sum which bears to two thousand five hundred pounds the same proportion as the length of the accounting period bears to twelve months, the tax payable for the accounting period shall not exceed the aggregate of—

(i) the amount of tax which would have been payable if the profits of the accounting period had not exceeded the said sum, and

(ii) one-quarter of the amount by which the profits exceed the said sum.

( b ) Where, in the case of an accounting period mentioned in paragraph (b) or (d) of the immediately preceding subsection, the profits apportioned to the part of the accounting period after the 31st day of December, 1961, or, as the case may be, before the 1st day of January, 1964, exceed the sum which bears to two thousand five hundred pounds the same proportion as the length of that part bears to twelve months, the tax payable on those profits shall not exceed the aggregate of—

(i) the amount of tax which under the said paragraph (b) or paragraph (d) would have been payable on those profits if they had not exceeded the said sum, and

(ii) one-quarter of the amount by which those profits exceed the said sum.

(5) Any additional corporation profits tax payable by virtue of the alterations in the law made by this section in respect of any accounting period ending on or after the 1st day of January, 1962, may be assessed and recovered notwithstanding that corporation profits tax has already been assessed in respect of that period.

Application of section 227 of Income Tax Act, 1918.

38.—Section 227 of the Income Tax Act, 1918, shall apply to corporation profits tax and, notwithstanding subsection (4) of section 10 of the Petty Sessions (Ireland) Act, 1851, summary proceedings under that section as so applied may be instituted within three years from the date of the committing of the offence.

Amendment of section 13 of Finance (Miscellaneous Provisions) Act, 1956 .

39.—Subsection (10) of section 13 of the Finance (Miscellaneous Provisions) Act, 1956 , shall apply to any accounting period or part of an accounting period of the company within the period of five years commencing on the 1st day of October 1961, as if—

( a ) "accounting period", wherever occurring in that subsection, referred to it, and

( b ) for "reduced by twenty-five per cent." in paragraph (a) of the said subsection (10) there were substituted—

(i) in case it is an accounting period or part of an accounting period within the first of those years, "reduced by twenty per cent.",

(ii) in case it is an accounting period or part of an accounting period within the second of those years, "reduced by fifteen per cent.",

(iii) in case it is an accounting period or part of an accounting period within the third of those years, "reduced by ten per cent.",

(iv) in case it is an accounting period or part of an accounting period within the fourth and fifth of those years, "reduced by five per cent.".

PART V STAMP DUTIES

Termination of stamp duty on bills of lading.

40.—(1) The stamp duty charged by the Stamp Act, 1891, under the heading 'I Bill of Lading " in the First Schedule to that Act shall cease to be chargeable.

(2) This section shall come into operation on the 1st day of August, 1963, or the date of the passing of this Act, whichever is the later.

Exemption from stamp duty on certain bills of exchange.

41.—The First Schedule to the Stamp Act, 1891, shall have effect as if the following exemption were inserted therein under the heading "Bill of Exchange or Promissory Note":

"Bill drawn on any form supplied by the Revenue Commissioners for the purpose of remitting amounts of turnover tax".

Amendment of sections 33 and 34 of Finance Act, 1961 .

42.—(1) Subsection (4) of section 33 of the Finance Act, 1961 , shall not apply to a conveyance or transfer to a body corporate Incorporated in the State otherwise than under the Companies Acts, 1908 to 1959, and subsection (4) of section 34 of that Act shall not apply to a lease to such a body.

(2) This section shall come into operation on the 1st day of August, 1963, or the date of the passing of this Act, whichever is the later.

Extension of section 19 of Finance Act, 1950 .

43.— Section 19 of the Finance Act, 1950 , is hereby amended—

( a ) by the substitution in subsection (1) of "a business of issuing policies of insurance" for "industrial assurance business",

( b ) by the substitution in subsection (3) of "the business to which the agreement relates" for "its industrial assurance business".

Alteration of stamp duties on conveyances and transfers of stock and marketable securities.

44.—(1) Conveyances or transfers of stocks or marketable securities, instead of being chargeable with stamp duty at the rates in force immediately before the commencement of this section, shall be chargeable with that duty at the following rates:

When the amount or value of the consideration for the sale does not exceed £1 5 s.
Exceeds	£1 5s	and does not exceed	£2 10 s.	3d
	£2 10 s.	" " " "	£3 15 s.	9d
	£3 15 s.	" " " "	£5	1s
	£5	" " " "	£10	2 s.
	£10	" " " "	£15	3 s.
	£15	" " " "	£20	4 s.
	£20	" " " "	£35	5 s.
	£35	" " " "	£60	10 s.
	£60	" " " "	£80	15s.
	£80	" " " "	£100	20 s.
	£100	" " " "	£125	25 s.
	£125	" " " "	£150	30s.
	£150	" " " "	£175	35s.
	£175	" " " "	£200	40s.
	£200	" " " "	£225	45s.
	£225	" " " "	£250	50s
	£250	" " " "	£275	55s.
	£275	" " " "	£300	60s.
	£300	" " " "

For very £50, and also for any fractional part of £50, of such amount or value... ..... ... 10s.

(2) This section shall come into operation on the 1st day of August, 1963, or the date of the passing of this Act, whichever is the later.

Agreement as to stamp duty on certain instruments.

45.—(1) The Revenue Commissioners may, if they in their discretion so think proper, enter into an agreement with any local authority to which this section applies for the composition, in accordance with the following provisions of this section, of the stamp duty chargeable under the heading "Bill of Exchange or Promissory Note" in the First Schedule to the Stamp Act, 1891, on instruments drawn by the local authority on their banker on forms provided by themselves.

(2) Any such agreement shall be in such form and on such terms and shall contain such conditions as the Revenue Commissioners think proper and, in particular, the agreement shall require the local authority to deliver to the Revenue Commissioners periodical accounts in respect of the instruments to which it relates giving particulars of those instruments.

(3) While any such agreement remains in force, any instrument to which it relates and which bears such indication of the payment of stamp duty as the Revenue Commissioners may require shall not be chargeable with stamp duty, but, in lieu thereof and by way of composition, the local authority who have entered into the agreement shall pay to the Revenue Commissioners, on the delivery of any account under the agreement, such sums as would, but for the provisions of this section, have been chargeable by way of stamp duty on instruments to which the agreement relates drawn during the period to which the account relates.

(4) Where the local authority concerned make default in delivering any account required by any such agreement or in paying the duty payable on the delivery of any such account, they shall be liable to a fine not exceeding fifty pounds for any day during which the default continues and shall also be liable to pay, in addition to the duty, interest thereon, which shall be recoverable in the same manner as if it were part thereof, at the rate of five per cent. per annum from the date when the default begins.

(5) This section applies to the following local authorities:

( a ) the council of a county,

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

( c ) the Dublin Health Authority,

( d ) the Cork Health Authority,

( e ) the Limerick Health Authority,

( f ) the Waterford Health Authority.

PART VI TURNOVER TAX

Interpretation (Part VI).

46.—In this Part of and the First Schedule to this Act, save where the context otherwise requires—

"body of persons" has the same meaning as is given to that expression in section 237 of the Income Tax Act, 1918.

"goods" has the same meaning as in the Sale of Goods Act, 1893;

"hotel" includes any guest house, holiday hostel, holiday camp, motor hotel, motel, coach hotel, motor inn, motor court or tourist court;

"month" means any of the months January to December;

"secretary" includes such persons as are mentioned in subsection (1) of section 106 of the Income Tax Act, 1918, and subsection (1) of section 55 of the Finance Act, 1920;

"tax" means tax chargeable by virtue of this Part of this Act.

Charge of turnover tax.

47.—(1) With effect on and from the 1st day of November, 1963, a tax, to be called turnover tax, shall, subject to this Part of this Act and the regulations thereunder, be charged, levied and paid—

( a ) on moneys received in respect of all or any of the following activities:

(i) sale of goods sold in the course of business (including goods sold before the 1st day of November, 1963),

(ii) hire of goods hired in the course of business (including goods hired before the 1st day of November, 1963),

(iii) provision of services provided in the course of business (including services provided before the 1st day of November, 1963),

(iv) acceptance of bets made or entered into with the holder of a bookmaker's licence under the Betting Act, 1931 ,

(v) acceptance of stakes staked by means of a totalisator to which a licence under the Totalisator Act, 1929 , relates,

(vi) acceptance of stakes staked at gaming to which a licence under Part III of the Gaming and Lotteries Act, 1956 , relates,

(vii) issue of tickets or coupons issued for the purpose of a lottery to which a licence under Part IV of the Gaming and Lotteries Act, 1956 , relates,

(viii) acceptance of entry fees in respect of crossword puzzles, competitions and contests promoted through the medium of newspapers and other publications,

(ix) entertainments as defined in Section 1 of the Finance (New Duties) Act, 1916 (including any ball or dance);

( b ) on goods imported into the State.

(2) For the purposes of subsection (1) of this section, the moneys received in respect of the acceptance of bets made or entered into with the holder of a bookmaker's licence under the Betting Act, 1931 , shall be the aggregate of the sums of money which by the terms of the bets such holder will be entitled to receive, retain or take credit for if the events which are the subjects of the bets are determined in his favour.

(3) In a case in which the moneys received by the person providing an entertainment referred to in subsection (1) of this section have not in any month exceeded, and are not likely in any month to exceed, £100, and he has hired the premises in which the entertainment takes place, the reference in that subsection to the moneys received in respect of the entertainment shall be construed as a reference to the moneys received by the proprietor of those premises in respect of the hiring.

(4) Moneys received from sales of goods sold by a club or other body of persons to any of its members shall be liable to tax to the same extent as if the sales were made to persons who are not members.

(5) Tax shall not be chargeable under subsection (1) of this Section on moneys received in respect of the sale of goods delivered to or the provision of services provided for persons outside the State or on moneys received in respect of admissions to sporting events or in respect of the hiring of premises for the purpose of sporting events.

Persons accountable.

48.—(1) Save as otherwise provided by this Part of this Act, the person accountable for and liable to pay tax shall be—

( a ) in the case of goods sold—the seller,

( b ) in the case of goods hired—the person from whom the hirer hired the goods,

( c ) in the case of the provision of services—the provider,

( d ) in the case of the acceptance of bets made or entered into with the holder of a bookmaker's licence under the Betting Act, 1931 —such holder,

( e ) in the case of the acceptance of stakes staked by means of a totalisator to which a licence under the Totalisator Act, 1929 , relates—the holder of the licence,

( f ) in the case of the acceptance of stakes staked at gaming to which a licence under Part III of the Gaming and Lotteries Act, 1956 , relates—the holder of the licence,

( g ) in relation to the issue of tickets or coupons issued for the purposes of a lottery to which a licence under Part IV of the Gaming and Lotteries Act, 1956 , relates—the holder of the licence,

( h ) in the case of the acceptance of entry fees in respect of crossword puzzles, competitions and contests promoted through the medium of newspapers and other publications—the promoter,

( i ) in the case of entertainments—in case the person providing the entertainment hired the premises in which the entertainment takes place and subsection (3) of section 47 of this Act does not apply, the person providing the entertainment and, in any other case, the proprietor of the premises.

(2) ( a ) Tax shall not be chargeable and a person shall not be accountable for tax on the moneys received by him in relation to any exempted activity.

( b ) In the foregoing paragraph "exempted activity" means any activity which is mentioned in the First Schedule to this Act or is declared by the Minister for Finance by order to be, for the purposes of this subsection, exempted.

(3) ( a ) (i) Subject to subparagraph (ii) of this paragraph, a person who sells goods in the course of business may at his discretion elect to be accountable for tax on the moneys received by him in relation to the activities in which he engages in a case in which those moneys have not in any month exceeded, and are not likely in any month to, exceed, £250, and unless he so elects and subject to paragraph (d) of this subsection, tax shall not be chargeable and he shall not be accountable for tax on those moneys.

(ii) Subparagraph (i) of this paragraph shall apply if, but only if, not less than 90 per cent. of the moneys received are received in respect of the sale of goods.

( b ) (i) Subject to subparagraph (ii) of this paragraph, a person who sells goods in the course of business, other than a person to whom paragraph (a) of this subsection applies, may at his discretion elect to be accountable for tax on the moneys received by him in relation to the activities in which he engages in a case in which those moneys have not in any month exceeded, and are not likely in any month to exceed, £750, and unless he so elects and subject to paragraph (e) of this subsection, tax shall not be chargeable and he shall not be accountable for tax on those moneys.

(ii) Subparagraph (i) of this paragraph shall apply if, but only if, not less than 90 per cent. of the moneys received are received in respect of the sale of goods which have been procured by the seller from a person accountable for tax in respect of his sale of those goods.

( c ) A person, other than a person to whom paragraph (a) or paragraph (b) of this subsection applies, may at his discretion elect to be accountable for tax on the moneys received by him in relation to the activities in which he engages in a case in which those moneys have not in any month exceeded, and are not likely in any month to exceed, £100, and unless he so elects and subject to paragraph (f) of this subsection, tax shall not be chargeable and he shall not be accountable for tax on those moneys.

( d ) Where a person has not been accountable for tax by virtue of paragraph (a) of this subsection and the moneys received by him in relation to the activities in which he engages exceed £250 in each of two successive months, he shall become accountable for tax immediately on the expiration of the second month.

( e ) Where a person has not been accountable for tax by virtue of paragraph (b) of this subsection and the moneys received by him in relation to the activities in which he engages exceed £750 in each of two successive months, he shall become accountable for tax immediately on the expiration of the second month.

( f ) Where a person has not been accountable for tax by virtue of paragraph (c) of this subsection and the moneys received by him in relation to the activities in which he engages exceed £100 in any month he shall become accountable for tax from the commencement of such month.

(4) Reference in this Part of this Act to persons accountable and accountability in relation to tax shall be construed by reference to the foregoing provisions of this section.

Registration.

49.—(1) The Revenue Commissioners shall set up and maintain a register of persons who may become or who are accountable for tax and shall allot a registration number to every person registered and shall cancel such number if the person does not become or ceases to be accountable for tax.

(2) Every person who on the appointed day is carrying on any activity with respect to which section 48 of this Act provides for accountability, or who, after the appointed day commences or is about to commence to carry on any such activity, may after the appointed day, but not earlier than one month before he commences to carry on the relevant activity, furnish in writing to the Revenue Commissioners the particulars specified in the regulations under section 52 of this Act as being required for the purpose of registering such person.

(3) Where a person after the appointed day is carrying on any such activity as is mentioned in subsection (2) of this section and has not already furnished the particulars mentioned in that subsection he shall do so within the period of nine days beginning on the appointed day or on the day thereafter on which he commences to carry on the activity.

(4) Subsection (3) of this section shall not compel any person to furnish particulars in a case falling within the description mentioned in paragraph (a), paragraph (b) or paragraph (c) of subsection (3) of section 48 of this Act.

(5) In this section "the appointed day" means the day appointed by the Minister for Finance by order to be the appointed day for the purposes of this section.

(6) A registered person who has not elected under subsection (3) of section 48 of this Act shall be taken as a person not entitled so to elect.

Exception in the case of moneys received from registered persons in certain cases.

50.—(1) ( a ) Tax shall not be charged on moneys received from a registered person for or in respect of goods sold or hired to him or services provided for him for the purposes of activities with respect to which section 48 of this Act provides for his being the accountable person if (but only if)—

(i) he has given to the person from whom the goods were bought or hired or by whom the services were provided a statement in writing quoting his registration number, and

(ii) in a case of a sale or hire of goods otherwise than to a dealer therein, the goods do not fall within any of the descriptions set out in the Second Schedule to this Act.

( b ) For the purposes of the foregoing paragraph registered persons carrying on business as proprietors of hotels and restaurants may be treated as if they were dealers in the goods required for the purposes of their business, but this provision shall not apply in relation to—

(i) motor vehicles designed for the conveyance of persons by road, or

(ii) hydrocarbon oils for domestic use or for road transport.

(2) Where a registered person is sold or hired goods or provided with services by a person to whom he has given a statement under subparagraph (i) of paragraph (a) of the foregoing subsection and the circumstances are such that tax is chargeable, he shall so notify that person.

Withdrawing goods from stock.

51.—(1) A person withdrawing goods from stock for his own use or for the use of any other person, shall, for the purposes of this Part of this Act, be deemed thereby to have received payment in respect of a sale of the goods at the retail price current at the time of the withdrawal.

(2) The foregoing subsection does not apply in the case of a withdrawal of goods, not being goods of any of the descriptions specified in the Second Schedule to this Act, if the goods are required by the person withdrawing them exclusively for the purposes of his business.

Regulations.

52.—(1) The Revenue Commissioners shall make such regulations as seem to them to be necessary for the purpose of giving effect to this Part of this Act and of enabling them to discharge their functions thereunder and, without prejudice to the generality of the foregoing, the regulations may make provision in relation to all or any of the following matters:

( a ) particulars required for registration and the manner in which registration is to be effected and cancelled,

( b ) the manner in which and the times at which the tax is to be paid and collected (and it is hereby declared that the procedures for payment and collection may include a procedure for payment and collection by means of stamps affixed to cards),

( c ) the manner in which tax is to be recovered in cases of default in payment,

( d ) the keeping by persons accountable for tax of accounts and records, and the preserving of such documents and supporting documents,

( e ) disclosure to the Revenue Commissioners of such information as they may require for the ascertainment of liability to tax,

( f ) the production to and inspection and removal by persons authorised by the Revenue Commissioners of invoices, receipts, books, records, accounts and other documents for the purpose of satisfying themselves as to whether tax has been duly paid,

( g ) the refund of tax paid to the Revenue Commissioners by registered persons in excess of the amount required by law,

( h ) the remission at the discretion of the Revenue Commissioners of small amounts of tax and interest,

( i ) the remission or refund of tax payable by bookmakers in respect of void and uncollectable bets and bets laid with other bookmakers,

( j ) matters consequential on the death of a registered person or his becoming subject to any incapacity,

( k ) service of notices,

( l ) the nomination by the Revenue Commissioners of officers to perform any acts and discharge any functions authorised by this Part of this Act to be performed or discharged by the Revenue Commissioners,

( m ) the acceptance of estimates (whether or not subject to subsequent review) of taxable turnover where particulars of actual moneys received are not readily available,

( n ) specification of anything referred to, in the First Schedule to this Act, as specified by regulations under this section.

(2) Regulations under this section may make different provisions in relation to different cases and may in particular provide for differentiation between different classes of persons affected by this Part of this Act and for the adoption of different procedures for different such classes.

(3) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Rate of tax.

53.—(1) Subject to subsection (2) of this section, the tax shall be two and one-half per cent. of the taxable turnover of the accountable person and the amount of tax chargeable during every month shall be paid after the expiration of the month in accordance with the regulations under this Part of this Act.

(2) In respect of any month—

( a ) where the taxable turnover does not exceed £100, the tax shall be 5s.,

( b ) Where the taxable turnover exceeds £100, the tax chargeable in respect of the first £100 shall be 5s.

(3) Where it is shown to the satisfaction of the Revenue Commissioners that—

( a ) any part of the taxable turnover of an accountable person in any month consisted of moneys paid under a contract entered into before the 1st day of August, 1963, which provides for the sale or hire of goods or the provision of services at prices or charges fixed before that day, or

( b ) any part of the taxable turnover of an accountable person in the month of November, 1963, or any of the four months next following that month consisted of moneys received in respect of goods sold or hired or services provided before the 1st day of August, 1963,

the Revenue Commissioners may repay the tax paid on that part or, at their discretion, allow it to be set off against the tax payable in any month.

(4) In this section "taxable turnover" means the total amount of money received by the accountable person on account of the activities in respect of which he is accountable.

Estimation of tax due.

54.—(1) If on any occasion an accountable person fails to furnish in accordance with the relevant regulations the particulars necessary for the ascertainment of the amount of tax due by him, then, without prejudice to any other action which may be taken, the Revenue Commissioners may on each such occasion estimate the amount of tax due by him and serve notice on him of the amount estimated.

(2) Where a notice is served under subsection (1) of this section on a person—

( a ) the person may, if he claims that he is not an accountable person, by notice in writing given to the Revenue Commissioners within the period of fourteen days from the service of the notice, require the claim to be referred for decision to the Special Commissioners of Income Tax and their decision shall be final and conclusive,

( b ) on the expiration of the said period, if no such claim is required to be so referred, or, if such claim is required to be so referred, on determination by the Special Commissioners of Income Tax against the claim, the estimated tax specified in the notice shall be recoverable in the same manner and by the like proceedings as if the person had sent, in accordance with the relevant regulations, particulars showing as due by him such estimated tax,

( c ) if the person furnishes the particulars at any time after the service of the notice and tax has been paid in accordance with the particulars, together with any interest and costs which may have been incurred in connection with the default, the notice shall stand discharged and any excess which may have been paid shall be repaid.

Interest.

55.—Where any amount of tax is due for payment and is not paid, simple interest on the amount shall be paid by the accountable person, and such interest shall be calculated from the date on which the amount became due for payment and at a rate of one per cent. for each month or part of a month during which the amount remains unpaid.

Recovery of tax.

56.—(1) ( a ) Without prejudice to any other mode of recovery, the provisions of any enactment relating to the recovery of income tax and the provisions of any rule of court so relating shall apply to the recovery of any tax due in accordance with this Part of this Act and the regulations thereunder as they apply in relation to the recovery of income tax.

( b ) In particular and without prejudice to the generality of paragraph (a) of this subsection, that paragraph applies the provisions of section 162 of the Income Tax Act, 1918, section 7 of the Finance Act, 1923 , sections 11 and 38 of the Finance Act, 1924 , and section 54 of the Finance Act, 1958 .

( c ) Provisions as applied by this subsection shall so apply subject to any modifications specified by regulations under section 52 of this Act.

(2) In proceedings instituted by virtue of this section or any regulation under this Part of this Act for the recovery of any amount of tax—

( a ) a certificate signed by an officer of the Revenue Commissioners which certifies that a stated amount of tax is due and payable by the defendant shall be evidence until the contrary is proved that that amount is so due and payable, and

( b ) a certificate certifying as aforesaid and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.

(3) Any reference in the foregoing subsections of this section to an amount of tax includes a reference to interest payable in the case in question under section 55 of this Act.

(4) Subject to this section, the rules of the court concerned for the time being applicable to civil proceedings shall apply to proceedings by virtue of this section or any regulations under this Part of this Act.

(5) Where an order which was made before the passing of this Act under section 12 of the Court Officers Act, 1945 , contains a reference to levy under a certificate issued under section 7 of the Finance Act, 1923 , that reference shall be construed as including a reference to levy under a certificate issued under the said section 7 as extended by this section.

Penalties.

57.—(1) A person who contravenes subsection (2) of section 50 of this Act shall be liable to a penalty of twenty pounds.

(2) A person who does not comply with subsection (3) of section 49 of this Act or any provision of regulations under this Part of this Act in relation to registration, the keeping of accounts, the furnishing of statements, or the production for inspection or removal of documents shall be liable to a penalty of twenty pounds, together with, in the case of a continuing non-compliance, a penalty of the like amount for every day on which the non-compliance is continued.

(3) Where a person mentioned in the foregoing subsection is a body of persons, the secretary shall be liable to a separate penalty of twenty pounds.

(4) All penalties under this section may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any penalty under any Act relating to the excise, and, notwithstanding subsection (4) of section 10 of the Petty Sessions (Ireland) Act, 1851, summary proceedings under this section may be instituted within three years from the date of the incurring of the penalty.

(5) Where—

( a ) a person does not comply with subsection (3) of section 49 of this Act or any provision of regulations under this Part of this Act requiring him to furnish any statement or to produce for inspection or permit removal of any documents,

( b ) compliance is required within a particular period, and

( c ) such person continues, during a further period of two or more days, not to furnish the particulars or statement or produce for inspection or permit removal of the documents,

the non-compliance shall be regarded, for the purposes of subsection (2) of this section, as a non-compliance continuing on every day, other than the first, of the further period.

(6) In proceedings for recovery of a penalty under this section—

( a ) a certificate signed by an officer of the Revenue Commissioners which certifies that he has inspected the relevant records of the Revenue Commissioners and that it appears from them that, during a stated period, a stated statement was not furnished by the defendant shall be evidence until the contrary is proved that the defendant did not, during that period, furnish that statement,

( b ) a certificate signed by an officer of the Revenue Commissioners which certifies that he has inspected the relevant records of the Revenue Commissioners and that it appears from them that a stated document was duly sent to the defendant on a stated day shall be evidence until the contrary is proved that that person received that document in the ordinary course,

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

(7) Subject to this section, the rules of the court concerned for the time being applicable to civil proceedings shall apply to proceedings pursuant to this section.

Fraudulent return, etc.

58.—(1) Where a person fraudulently or negligently, for the purposes of this Part of this Act or of regulations made thereunder, produces, furnishes, gives, sends or otherwise makes use of, any incorrect return, account, estimate, statement, information, book, document, record or declaration, he shall, subject to subsection (2) of this section, be liable to a penalty of—

( a ) one hundred pounds, and

( b ) the amount, or, in the case of fraud, twice the amount, of the difference between the amount of tax paid by such person for the period in question, and the amount of tax properly payable by such person if the said return, account, estimate, statement, information, book, document, record or declaration had been correct.

(2) Where a person mentioned in the foregoing subsection is a body of persons—

( a ) the reference in paragraph (a) of that subsection to one hundred pounds shall be construed as a reference to five hundred pounds, or, in the case of fraud, one thousand pounds, and

( b ) the secretary shall be liable to a separate penalty of one hundred pounds, or in the case of fraud, two hundred pounds.

(3) Where any such return, account, estimate, statement, information, book, document, record, or declaration as is mentioned in subsection (1) of this section was made or submitted by a person neither fraudulently nor negligently and it comes to his notice (or, if he has died, to the notice of his personal representatives) that it was incorrect, then, unless the error is remedied without unreasonable delay, the return, account, estimate, statement, information, document, book, record or declaration, shall be treated for the purposes of this section as having been negligently made or submitted by him.

(4) If a person, in a case in which he represents that he is a registered person or uses a registration number, procures the supply to himself of goods or the provision for himself of services in circumstances in which tax is chargeable and fails to notify the seller or provider that the tax is chargeable, he shall be liable to a penalty of five hundred pounds, and, in addition, he shall be liable to pay to the Revenue Commissioners the amount of any tax, which the seller or provider has failed to pay.

(5) Notwithstanding anything in section 59 of this Act, proceedings for the recovery of any penalty under this section shall not be out of time by reason that they are commenced after the time allowed by the said section 59.

(6) For the purposes of this section, any return, account, estimate, statement, information, book, document or declaration submitted on behalf of a person shall be deemed to have been submitted by that person unless he proves that it was submitted without his consent or knowledge.

(7) Any reference in the foregoing subsections of this section to an amount of tax includes a reference to interest payable in the case in question under section 55 of this Act.

Time limits.

59.—(1) Subject to subsection (3) of this section and subsection (5) of section 58 of this Act, proceedings for recovery of any penalty under this Part of this Act may be commenced at any time within six years next after the date on which it was incurred.

(2) Where the person who has incurred any penalty has died, any proceedings under this Part of this Act, which have been or could have been commenced against him may be continued or commenced against his executor or administrator, as the case may be, and any penalty awarded in proceedings so continued or commenced shall be a debt due from and payable out of his estate.

(3) Subsection (1) of this section shall, in relation to proceedings commenced by virtue of subsection (2) of this section have effect as if "not later than three years after the expiration of the year in which the deceased person died in a case in which the grant of probate or letters of administration was made in that year and at any time not later than two years after the expiration of the year in which such grant was made in any other case, but the foregoing provisions of this subsection shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year in which the deceased person died, the proceedings may be begun at any time before the expiration of two years next after the end of the year in which the corrective affidavit was lodged" were substituted for "within six years next after the date on which it was incurred."

Penalty for assisting in making incorrect returns, etc.

60.—Any person who assists in or induces the making or delivery, for any purposes of tax, of any return, or account, statement or declaration which he knows to be incorrect shall be liable to a penalty of £500.

Proceedings in the High Court in respect of penalties.

61.—(1) Without prejudice to any other mode of recovery of a penalty under this Part of this Act, an officer of the Revenue Commissioners, authorised by them for the purposes of this subsection, may sue in his own name by civil proceedings for the recovery of the penalty in the High Court as a liquidated sum and the provisions of section 94 of the Courts of Justice Act, 1924 , shall apply accordingly.

(2) If an officer who has commenced proceedings pursuant to this section, or who has continued the proceedings by virtue of this subsection, dies or otherwise ceases for any reason to be an officer authorised for the purposes of subsection (1) of this section—

( a ) the right of such officer to continue the proceedings shall cease and the right to continue them shall vest in such other officer so authorised as may be nominated by the Revenue Commissioners,

( b ) where such other officer is nominated under paragraph (a) of this subsection, he shall be entitled accordingly to be substituted as a party to the proceedings in the place of the first mentioned officer, and

( c ) where an officer is so substituted, he shall give notice in writing of the substitution to the defendant.

(3) In proceedings pursuant to this section, a certificate signed by a Revenue Commissioner certifying the following facts, namely, that a person is an officer of the Revenue Commissioners and that he has been authorised by them for the purposes of subsection (1) of this section, shall be evidence until the contrary is proved of those facts.

(4) In proceedings pursuant to this section, a certificate signed by a Revenue Commissioner certifying the following facts, namely, that the plaintiff has ceased to be an officer of the Revenue Commissioners authorised by them for the purposes of subsection (1) of this section, that another person is an officer of the Revenue Commissioners, that such other person has been authorised by them for the purposes of subsection (1) of this section and that he has been nominated by them in relation to the proceedings, for the purposes of subsection (2) of this section, shall be evidence until the contrary is proved of those facts.

(5) In proceedings pursuant to this section, a certificate certifying the facts referred to in subsection (3) or (4) of this section and purporting to be signed by a Revenue Commissioner may be tendered in evidence without proof, and shall be deemed until the contrary is proved to have been so signed.

(6) Subject to this section, the rules of the High Court for the time being applicable to civil proceedings shall apply to proceedings pursuant to this section.

Application of section 222 of Income Tax Act, 1918.

62.—The provisions of section 222 of the Income Tax Act, 1918, shall apply to any penalty incurred under this Part of this Act.

Substitution of agent, etc., for person not resident in State.

63.—Where a person who is accountable for any tax, or on whom any duties are imposed by this Part of this Act or regulations made thereunder, is not resident in the State, the Revenue Commissioners may, by notice in writing served on any agent manager or factor, who is resident in the State and has acted on behalf of that person in the matters by reference to which that person is accountable or those duties are imposed, direct that he shall be substituted for that person as the person accountable for the tax or that he shall be under an obligation to discharge those duties or any of them and, upon such direction having been served, he shall stand substituted accordingly and shall be subject to the same penalties as if he were the person who is accountable for the tax or on whom those duties are imposed.

Charge of tax on imported goods.

64.—(1) Sections 48 to 63 of this Act shall not apply to tax provided for by paragraph (b) of subsection (1) of section 47 of this Act and that tax shall, subject to subsection (2) of this section, be charged on every article imported on or after the 1st day of November, 1963, at the rate of two and one-half per cent. of the value of the article.

(2) Tax as aforesaid shall not be charged on—

( a ) live animals,

( b ) earth, stone, gravel, sand or cement,

( c ) seeds, fertilisers and animal feeding stuffs,

( d ) an article mentioned in the Second Schedule to this Act imported as stock for his business by a registered person who is a dealer in such articles,

( e ) an article, not being an article mentioned in the Second Schedule to this Act, imported—

(i) as stock for his business,

(ii) as materials for manufacture,

(iii) as furniture, fittings, office requisites, plant or equipment for his business,

by a registered person,

( f ) any article which is declared by the Minister for Finance by order to be an article not chargeable with tax on being imported into the State.

(3) Subject to the foregoing provisions of this section, the provisions of the Customs Consolidation Act, 1876, and the enactments amending that Act and other enactments relating to Customs shall apply to tax referred to in this section as if it were a duty of customs.

(4) The value of an article for the purposes of this section shall be the value as defined in section 15 of, and the Third Schedule to, the Finance Act, 1952 , increased by the amount of any customs duty payable thereon.

Extension of certain Acts.

65.—(1) Section 1 of the Provisional Collection of Taxes Act, 1927 , is hereby amended by the insertion of ", and also turnover tax, " before " but no other tax or duty ".

(2) Section 1 of the Imposition of Duties Act, 1957 , is hereby amended by the insertion after paragraph (g) of the following paragraph:

"(gg) terminate or vary in any manner or respect whatsoever and as from a specified day turnover tax;"

but no order shall be made under that Act for the purpose of increasing the rate of the tax or extending the classes of activities or goods in respect of which tax is for the time being chargeable.

(3) Section 39 of the Inland Revenue Regulation Act, 1890, is hereby amended by the insertion of "turnover tax," before "stamp duties".

Collection of tax.

66.—Turnover tax shall be paid to and collected and levied by the Collector-General.

PART VII INDUSTRIAL AND PROVIDENT SOCIETIES: INCOME TAX AND CORPORATION PROFITS TAX

Interpretation (Part VII).

67.—In this Part of this Act, save where the context otherwise requires—

"capital allowance" means any allowance, other than an allowance falling to be made in computing profits or gains, under Rule 6 of the Rules applicable to Cases I and II of Schedule D, section 5 or section 6 of the Finance Act, 1946 , Part V of the Finance Act, 1956 , Part IV of the Finance (Miscellaneous Provisions) Act, 1956 , Part V of the Finance Act, 1957 , or Part V or section 74 of the Finance Act, 1959 ;

"loan interest", in relation to a society, means any interest payable by the society in respect of any mortgage, loan, loan stock, or deposit;

"share interest", in relation to a society, means any interest, dividend, bonus, or other sum payable to a shareholder of the society by reference to the amount of his holding in the share capital of the society;

"society" means a society registered under the Industrial and Provident Societies Acts, 1893 to 1936;

and references to the payment of share interest or loan interest include references to the crediting of such interest.

Deduction as expenses of certain sums, etc.

68.—(1) It is hereby declared that in computing, for the purposes of Case I of Schedule D or of Rule 4 of the Rules applicable to Case III of that Schedule, the profits or gains of a society there are to be deducted as expenses any sums which—

( a ) represent a discount, rebate, dividend, or bonus granted by the society to members thereof or other persons in respect of amounts paid or payable by or to them on account of their transactions with the society being transactions which are taken into account in the said computation, and

( b ) are calculated by reference to the said amounts or to the magnitude of the said transactions and not by reference to the amount of any share or interest in the capital of the society.

(2) A society whose business consists mainly in the making of investments, and the principal part of whose income is derived therefrom, shall be entitled to relief under section 33 of the Income Tax Act, 1918, in the same manner and to the same extent as if the business of the society were the business of a company.

(3) Where any profits or gains of a society which, but for the repeal by this Act of subsection (4) of section 39 of the Income Tax Act, 1918, would not be chargeable to tax are so chargeable by virtue of that repeal and the computation of profits or gains is required to be made by reference to any year or period other than the year of assessment, the computation for that year or period shall be made in accordance with the provisions of this Part of this Act notwithstanding that those provisions were not in force in that year or period or some part thereof.

(4) ( a ) Where for the year 1962-63 a society was entitled to exemption from tax in respect of the profits of a trade carried on by it—

(i) no capital allowance in respect of any property used for the purposes of the trade shall be carried forward from the year 1962-63, and

(ii) no loss, or portion of a loss, which was sustained before the 6th day of April, 1963, shall be carried forward under section 14 of the Finance Act, 1929 .

( b ) Where for the year 1962-63 or any previous year of assessment an annual allowance, balancing allowance or balancing charge in respect of capital expenditure on the construction of a building or structure might have been made to or on a society under Part V of the Finance Act, 1959 , but for the circumstance that the society was exempt from tax under Schedule D, any annual allowance, balancing allowance or balancing charge falling to be made in respect of the expenditure under the said Part V for the year 1963-64 or a subsequent year of assessment shall be computed as if every annual allowance, balancing allowance and balancing charge which might have been made as aforesaid had been made:

Provided that nothing in this paragraph shall affect the provisions of subsection (5) of section 26 of the Finance Act, 1959 .

( c ) Where for the year 1962-63 or any previous year of assessment an annual allowance in respect of capital expenditure on the purchase of patent rights might have been made to or on a society under Part V of the Finance Act, 1959 , but for the circumstance that the society was exempt from tax under Schedule D, the amount of the expenditure remaining unallowed (within the meaning of section 48 of the said Act) shall, in relation to any balancing allowance or balancing charge under the said Part V falling to be made to or on the society in respect of the expenditure for the year 1963-64 or a subsequent year of assessment, be computed as if every annual allowance which might have been made as aforesaid had been made.

(5) Where any profits or income of a society arising in the year 1963-64 have, by virtue of the repeal by this Act of subsection (4) of section 39 of the Income Tax Act, 1918, ceased to be exempt from income tax chargeable by deduction and the tax has not been deducted therefrom or, having been deducted therefrom, the tax has been repaid before the passing of this Act, an assessment may be made on the society under Case VI of Schedule D as if the profits or income were annual profits or gains chargeable under that Case.

Allowance of deductions in respect of loan interest, etc.

69.—(1) With effect as on and from the 1st day of January, 1963, in computing the profits of a society for the purposes of corporation profits tax, deductions shall, notwithstanding anything in paragraph (b) of the proviso to subsection (2) of section 53 of the Finance Act, 1920, be allowed in respect of share interest and loan interest.

(2) For the purpose of giving effect to subsection (1) of this section, to subsection (5) of section 70 of this Act and to the repeal by this Act of part of paragraph (h)of the proviso to subsection (2) of section 53 of the Finance Act, 1920, and section 53 of the Finance Act, 1921, where part of an accounting period is before and part after the beginning of the 1st day of January, 1963, the following provisions shall apply:

( a ) the profits of the accounting period shall first be computed as if this Act had not been passed and the profits attributable to the part of the accounting period before the 1st day of January, 1963, shall be taken to be the sum which bears to the profits of the accounting period computed as aforesaid the same proportion as the length of that part bears to the length of the accounting period;

( b ) the profits of the accounting period shall then be computed as if subsection (1) of this section and subsection (5) of the said section 70 and the said repeal had effect as respects the whole of any accounting period ending on or after the 1st day of January, 1963, and the profits attributable to the part of the accounting period after the 31st day of December, 1962, shall be taken to be the sum which bears to the profits of the accounting period computed as aforesaid the same proportion as the length of that part bears to the length of the accounting period, and

( c ) the profits of the accounting period for the purposes of corporation profits tax shall be ascertained by adding together the sums which under the foregoing paragraphs are to be taken to be the profits attributable respectively to the parts of the accounting period before the 1st day of January, 1963, and after the 31st day of December, 1962.

Disregard of profits or losses attributable to certain transactions.

70.—(1) In this section—

"agricultural society" means a society—

( a ) in relation to which both the following conditions are satisfied:

(i) that the number of the society's members is not less than fifty,

(ii) that all or a majority of the society's members are persons who are mainly engaged in, and derive the principal part of their income from, husbandry, or

( b ) to which a certificate under paragraph (a) of subsection (2) of this section relates;

"fishery society" means a society—

( a ) in relation to which both the following conditions are satisfied:

(i) that the number of the society's members is not less than twenty,

(ii) that all or a majority of the society's members are persons who are mainly engaged in, and derive the principal part of their income from, fishing, or

( b ) to which a certificate under paragraph (b) of subsection (2) of this section relates;

"exempted transactions" means—

( a ) in relation to an agricultural society, transactions falling within any of the following classes of transactions:

(i) the selling by wholesale of milk, cream, butter, cheese, eggs, poultry, meat or specified commodities,

(ii) the selling by retail of seeds, fertilisers or other commodities or articles, being specified commodities or articles, entering into or associated with agricultural production,

(iii) the auctioning of livestock, the artificial insemination of animals or the provision of specified services, and

( b ) in relation to a fishery society, transactions falling within any of the following classes of transactions:

(i) the selling by wholesale of fresh or processed fish,

(ii) the auctioning or transportation of fish,

(iii) the selling of commodities or articles used in catching fish or of specified commodities or articles;

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

(2) ( a ) The Minister for Finance may, on the recommendation of the Minister for Agriculture, give a certificate entitling a society to be treated, for the purposes of this section, as an agricultural society notwithstanding—

(i) that the number of the society's members is less than fifty, or

(ii) that persons such as are described in subparagraph (ii) of paragraph (a) of the definition of "agricultural society" contained in the foregoing subsection do not constitute a majority of the society's members.

( b ) The Minister for Finance may, on the recommendation of the Minister for Lands, give a certificate entitling a society to be treated, for the purposes of this section, as a fishery society notwithstanding—

(i) that the number of the society's members is less than twenty, or

(ii) that persons such as are described in subparagraph (ii) of paragraph (a) of the definition of "fishery society" contained in the foregoing subsection do not constitute a majority of the society's members.

( c ) In paragraph (a) of the definition of "exempted transactions" contained in the foregoing subsection "specified" means specified in a certificate given by the Minister for Finance on the recommendation of the Minister for Agriculture and in paragraph (b) of that definition "specified" means specified in a certificate given by the Minister for Finance on the recommendation of the Minister for Lands.

( d ) A certificate under paragraph (a), ( b ) or (c) of this subsection—

(i) shall have effect as from such date, whether before or after the date on which it is given, as may be stated therein,

(ii) shall be published in the Iris Oifigiúil as soon as may be after it is given, and

(iii) may be revoked by the Minister for Finance at any time.

( e ) Where a certificate is revoked under the foregoing paragraph, notice of the revocation shall be published as soon as may be in the Iris Oifigiúil.

(3) Where, in the case of a trade carried on by a society, the transactions in any year or period for which the accounts of the society are made up, being a year or period throughout which the society was an agricultural society or a fishery society, include exempted transactions, so much of the profits or gains or the loss (as the case may be) of that year or period (computed in accordance with the provisions, other than this section, applicable to Case I of Schedule D) as is attributable to the exempted transactions shall be disregarded for all the purposes of the Income Tax Acts.

(4) In relation to any trade, the amount of the profits or gains or loss attributable to the exempted transactions of any year or period shall be taken to he the amount which bears to the full amount of the profits or gains or, as the case may be, the full amount of the loss for the year or period the same proportion as the aggregate of the amounts receivable by the society, by virtue of those transactions, from the sale of goods or the provision of services bears to the aggregate of all amounts receivable by the society, by virtue of transactions in the year or period from the sale of goods or the provision of services.

(5) ( a ) Where, in the case of a trade carried on by a society, a proportion of the profits or gains or loss of any year or period is, under the foregoing provisions of this section, to be disregarded for all the purposes of the Income Tax Acts, a like proportion of the relevant profits or, as the case may be, the relevant loss of the year or period shall be disregarded for all the purposes of the enactments relating to corporation profits tax.

( b ) For the purposes of paragraph (a) of this subsection the amount of "the relevant profits" or of "the relevant loss" for any year or period shall be taken to be, where the society's business consists wholly in the carrying on of the trade concerned, the profits or, as the case may be, the loss of the society for the year or period computed in accordance with the enactments, other than this section, relating to corporation profits tax and, in any other case, what would have been the amount of the profits or, as the case may be, the loss of the society for the year or period computed as aforesaid if its business had consisted wholly in the carrying on of the trade concerned.

(6) Where for any year of assessment any capital allowances or any balancing charges under Part V of the Finance Act, 1959 , fall to be made in charging to income tax the profits or gains of a trade carried on by a society and a proportion of the profits or gains or, as the case may be, the loss of the basis period is disregarded under this section, the amount of allowances or the amount of charges which, but for this subsection, would have been made shall be diminished in like proportion.

In this subsection—

( a ) the reference to capital allowances falling to be made for any year of assessment does not include a reference to any amount carried forward from any previous year,

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

(7) All amounts receivable by an agricultural society or a fishery society from the sale of goods, being amounts which are so receivable by virtue of exempted transactions, shall be disregarded for all the purposes of Part III of the Finance (Miscellaneous Provisions) Act, 1956 , and where, in a case in which relief from income tax is given to the society under that Part, any share interest is payable with deduction of tax, subsection (2) of section 15 of that Act shall not apply.

(8) Where a society claims relief from income tax or corporation profits tax by virtue of this section, the Revenue Commissioners may by notice in writing require the society to make available, within such time as may be specified in the notice, for inspection by an inspector of taxes or other officer nominated by them, all books, records and documents containing information as to its trading transactions for the year or period concerned, and if the society fails to comply with such notice, no relief under this section shall be given.

Payment of interest without deduction of tax.

71.—(1) Notwithstanding anything in the Income Tax Acts, any share interest or loan interest paid by a society shall be paid without deduction of tax:

Provided that this subsection—

( a ) shall not apply to any share interest or loan interest payable to a person whose usual place of abode is not within the State, and

( b ) shall not render improper any such deduction made before the 1st day of August, 1963, which would have been a proper deduction if this section had not been enacted.

(2) There shall be added to Rule 1 of Case III of Schedule D the following clause:

"(1) share interest or loan interest paid by a society registered under the Industrial and Provident Societies Acts, 1893 to 1936, being interest which by virtue of section 71 of the Finance Act, 1963 , is payable without deduction of tax."

(3) ( a ) Where, in a case in which section 70 of this Act applies, a society claims repayment of tax under section 36 of the Income Tax Act, 1918, in respect of interest paid by it in any year of assessment, the amount repayable shall be determined on the basis that so much of the interest as exceeds the appropriate proportion thereof was not paid out of profits or gains brought into charge to tax.

( b ) Where, in any year of assessment, a society, in a case in which section 70 of this Act applies, pays any share interest or loan interest, from which tax is deductible, or makes any other annual payment, so much of the aggregate of the gross amounts of all such payments as exceeds the appropriate proportion thereof shall be treated as not having been paid out of profits or gains brought into charge and Rule 21 of the General Rules shall apply accordingly.

In this paragraph "annual payment" means any payment from which, apart from any insufficiency of profit or gains of the person making it, tax is deductible under Rule 19 of the General Rules.

( c ) Where in any year of assessment a society pays share interest or loan interest (other than loan interest in respect of which a claim such as is mentioned in paragraph (a) of this subsection is made) without deduction of tax in accordance with subsection (1) of this section, it may claim, in a case in which section 70 of this Act applies, that the appropriate proportion of the total amount so paid, or, in any other case, that the total amount so paid, be deducted from its total income for that year and, where such a claim is made, any appropriate relief from tax shall be given by repayment or otherwise.

Subsections (5) and (6) of section 34 of the Income Tax Act, 1918, shall apply to a claim under this paragraph as they apply to a claim under that section, except that it shall not be necessary to use a prescribed form.

( d ) Where for any year of assessment the amount of share interest and loan interest falling to be deducted from a society's total income under the immediately preceding paragraph exceeds the amount of the said total income, section 10 of this Act shall have effect as if the society had been assessed to tax under Rule 21 of the General Rules in respect of the payment of the excess and had paid tax under that assessment on the amount of such payment.

( e ) In this subsection "the appropriate proportion" of any amount of interest or annual payment paid by a society in a year of assessment means the portion of that amount which bears to the whole the same proportion as the amount of the society's total income for the year bears to what would, but for section 70 of this Act, have been the amount of the society's total income for that year.

( f ) For the purposes of this subsection the total income of a society shall be taken to be its total income from all sources for the purposes of income tax computed in the manner in which it would be computed if the society were an individual but without regard to any such interest or annual payment as is mentioned in paragraph (a), (b) or (c) of this subsection.

( g ) Any reference in the foregoing provisions of this subsection to loan interest or other interest does not include a reference to interest which is allowable as a deduction in the computation of the profits or gains of a trade carried on by the society.

( h ) On or before the 1st day of May in each year (commencing with the year 1964), every society shall deliver to the inspector of taxes a return in such form as the Revenue Commissioners may prescribe, showing—

(i) the name and place of residence of every person to whom share interest or loan interest amounting to the sum of five pounds or more has been paid by the society in the year of assessment which ended next before the said 1st day of May, and

(ii) the amount of such share interest or loan interest paid in that year to each of those persons,

and if such a return is not duly made as respects any year of assessment, the society shall not be entitled to any deduction under paragraph (c) of this subsection in respect of any payments of share interest or loan interest which it was required to include in the return, and the amount of any deduction in respect of any such payments by reference to which relief has been given under the said paragraph (c) may, if not otherwise made good, be assessed under Case VI of Schedule D and recovered from the society accordingly.

(4) This section shall be deemed to have come into operation on the 6th day of April, 1963.

PART VIII PENALTIES AND ASSESSMENTS: INCOME TAX, SUR-TAX AND CORPORATION PROFITS TAX

Application of Part VIII.

72.—The following provisions of this Part of this Act shall have effect in relation to any penalties incurred (whether by commission or omission) after the passing of this Act with respect to any year of assessment, or, as the case may be, accounting period, whether ending before or ending after such passing.

Penalties for failure to make certain returns, etc.

73.—(1) Where any person—

( a ) has been required, by notice or precept given under or for the purposes of any of the provisions specified in the first or second column of the Third Schedule to this Act, to deliver any return, statement, declaration, list or other document, to furnish any particulars, to produce any document, or to make anything available for inspection, and he fails to comply with the notice or precept, or

( b ) fails to do any act, furnish any particulars or deliver any account in accordance with any of the provisions specified in the third column of that Schedule,

he shall, subject to subsection (2) of this section and section 76 of this Act, be liable to a penalty of one hundred pounds and, if the failure continues after judgement has been given by the court before which proceedings for the penalty have been commenced, to a further penalty of ten pounds for each day on which the failure so continues.

(2) Where the said notice was given under or for the purposes of any of the provisions specified in the first column of the said Schedule and the failure continues after the end of the year of assessment following that during which the notice was given, the first of the penalties mentioned in subsection (1) of this section shall be two hundred and fifty pounds.

(3) The preceding provisions of this section shall have effect subject to the proviso to subsection (4) of section 100 and the proviso to subsection (1) of section 105 of the Income Tax Act, 1918.

Penalty for fraudulently or negligently making incorrect returns, etc.

74.—(1) Where a person fraudulently or negligently—

( a ) delivers any incorrect return or statement of a kind mentioned in any of the provisions specified in the first column of the Third Schedule to this Act,

( b ) makes any incorrect return, statement or declaration in connection with any claim for any allowance, deduction or relief, or

( c ) submits to the Revenue Commissioners, the Special Commissioners or an inspector of taxes any incorrect accounts in connection with the ascertainment of his liability to income tax (including sur-tax),

he shall, subject to section 76 of this Act, be liable to a penalty of—

(i) one hundred pounds, and

(ii) the amount, or, in the case of fraud, twice the amount, of the difference specified in subsection (1) of section 75 of this Act.

(2) Where a person fraudulently or negligently furnishes, gives, produces or makes any incorrect return, information, certificate, document, record, statement, particulars, account or declaration of a kind mentioned in any of the provisions specified in the second or third column of the Third Schedule to this Act, he shall, subject to section 76 of this Act, be liable to a penalty of one hundred pounds, or, in the case of fraud, of two hundred and fifty pounds.

(3) Where any such return, statement, declaration or accounts as is or are mentioned in subsection (1) of this section was or were made or submitted by a person neither fraudulently nor negligently and it comes to his notice (or, if he has died, to the notice of his personal representatives) that it or they was or were incorrect, then, unless the error is remedied without unreasonable delay, the return, statement, declaration or accounts shall be treated for the purposes of this section as having been negligently made or submitted by him.

(4) Subject to subsection (2) of section 77 of this Act, proceedings for the recovery of any penalty under subsection (1) or (2) of this section shall not be out of time by reason that they are commenced after the time allowed by subsection (1) of section 10 of the Finance Act, 1925 .

Provisions supplementary to section 74.

75.—(1) The difference referred to in paragraph (ii) of subsection (1) of section 74 of this Act is the difference between—

( a ) the amount of tax payable for the relevant years of assessment by the said person (including any amount deducted at source and not repayable), and

( b ) the amount which would have been the amount so payable if the return, statement, declaration or accounts as made or submitted by him had been correct.

(2) The relevant years of assessment for the purposes of subsection (1) of this section are, in relation to anything delivered, made or submitted in any year of assessment, that year, the next following year, and any preceding year of assessment; and the references in that subsection to the amount of tax payable include sur-tax, except that, in relation to anything done in connection with a partnership, they do not include any tax not chargeable in the partnership name.

(3) For the purposes of section 74 of this Act, any accounts submitted on behalf of a person shall be deemed to have been submitted by that person unless he proves that they were submitted without his consent or knowledge.

Increased penalties in the case of body of persons.

76.—(1) Where the person mentioned in section 73 of this Act is a body of persons as defined by section 237 of the Income Tax Act, 1918—

( a ) the body of persons shall be liable to—

(i) in case the notice was given under or for, the purposes of any of the provisions specified in the first column of the Third Schedule to this Act and the failure continues after the end of the year of assessment following that during which the notice was given—a penalty of one thousand pounds, and

(ii) in any other case—a penalty of five hundred pounds,

and, if the failure continues after judgement has been given by the court before which proceedings for the penalty have been commenced, a further penalty of fifty pounds for each day on which the failure so continues, and

( b ) the secretary shall be liable to—

(i) in case the notice was given under or for the purposes of any of the provisions specified in the first column of the Third Schedule to this Act and the failure continues after the end of the year of assessment following that during which the notice was given—a separate penalty of two hundred pounds, and

(ii) in any other case— a separate penalty of one hundred pounds.

(2) Where the person mentioned in section 74 of this Act is a body of persons as defined by section 237 of the Income Tax Act, 1918—

( a ) in the case of such fraud or negligence as is mentioned in subsection (1) of that section—

(i) the body of persons shall be liable to a penalty of—

(I) five hundred pounds, and

(II) the amount, or, in the case of fraud, twice the amount, of the difference specified in subsection (1) of section 75 of this Act, and

(ii) the secretary shall be liable to a separate penalty of one hundred pounds, or, in the case of fraud, two hundred pounds,

( b ) in the case of any such fraud or negligence as is mentioned in subsection (2) of that section—

(i) the body of persons shall be liable to a penalty of five hundred pounds, or, in the case of fraud, one thousand pounds, and

(ii) the secretary shall be liable to a separate penalty of one hundred pounds, or, in the case of fraud, two hundred pounds.

(3) The preceding provisions of this section shall have effect subject to the proviso to subsection (4) of section 100 and the proviso to subsection (1) of section 105 of the Income Tax Act, 1918, but otherwise shall have effect notwithstanding anything contained in that Act.

Proceedings against executor or administrator.

77.—(1) Where the person who has incurred any penalty has died after the passing of this Act, any proceedings under this Act which have been or could have been commenced against him may be continued or commenced against his executor or administrator, as the case may be, and any penalty awarded in proceedings so continued or commenced shall be a debt due from and payable out of his estate.

(2) Subsection (1) of section 10 of the Finance Act, 1925 , shall, in relation to proceedings commenced by virtue of subsection (1) of this section, have effect as if "not later than three years after the expiration of the year of assessment in which the deceased person died in a case in which the grant of probate or letters of administration was made in that year and at any time not later than two years after the expiration of the year of assessment in which such grant was made in any other case, but the foregoing provisions of this subsection shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year of assessment in which the deceased person died, the proceedings may be begun at any time before the expiration of two years next after the end of the year of assessment in which the corrective affidavit was lodged" were substituted for "within six years next after the date on which such fine or penalty was incurred".

Penalty for assisting in making incorrect return, etc.

78.—Any person who assists in or induces the making or delivery for any purposes of income tax (including sur-tax) of any return, account, statement or declaration which he knows to be incorrect shall be liable to a penalty of five hundred pounds.

Evidence of income for Purposes of Part VIII.

79.—For the purposes of this Part of this Act, any assessment which can no longer be varied by the Special Commissioners on appeal or by the order of any court shall be sufficient evidence that the income in respect of which tax is charged in the assessment arose or was received as stated therein.

Recovery of penalties.

80.—(1) Without prejudice to any other mode of recovery of a penalty under this Part of this Act, section 43 of the Finance Act, 1958 , or section 23 or 59 of the Finance Act, 1959 , an officer of the Revenue Commissioners, authorised by them for the purposes of this subsection, may sue in his own name by civil proceedings for the recovery of the penalty in the High Court as a liquidated sum and the provisions of section 94 of the Courts of Justice Act, 1924 , shall apply accordingly.

(2) If an officer who has commenced proceedings pursuant to this section, or who has continued the proceedings by virtue of this subsection, dies or otherwise ceases for any reason to be ail officer authorised for the purposes of subsection (1) of this section—

( a ) the right of such officer to continue the proceedings shall cease and the right to continue them shall vest in such other officer so authorised as may be nominated by the Revenue Commissioners,

( c ) where an officer is so substituted, he shall give notice in writing of the substitution to the defendant.

(4) In proceedings pursuant to this section, a certificate signed by a Revenue Commissioner certifying the following facts, namely, that the plaintiff has ceased to be an officer of the Revenue Commissioners authorised by them for the purposes of subsection (1) of this section, that another person is an officer of the Revenue Commissioners, that such other person has been authorised by them for the purposes of subsection (1) of this section and that he has been nominated by them, in relation to the proceedings, for the purposes of subsection (2) of this section, shall be evidence until the contrary is proved of those facts

(5) In proceedings pursuant to this section, a certificate certifying the facts referred to in subsection (3) or (4) of this section and purporting to be signed by a Revenue Commissioner may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been so signed.

(6) Subject to this section, the rules of the High Court for the time being applicable to civil proceedings shall apply to proceedings pursuant to this section.

Application of Part VIII to corporation profits tax.

81.—The provisions of the Fourth Schedule to this Act shall have effect for the purpose of making, with respect to corporation profits tax, provision corresponding to the preceding provisions of this Part of this Act.

Interpretation (Part VIII).

82.—(1) In this Part of this Act—

"assessment" includes additional assessment;

"secretary" includes such persons as are mentioned in subsection (1) of section 106 of the Income Tax Act, 1918, and subsection (1) of section 55 of the Finance Act, 1920, and, in relation to the duty under subsection (2) of the said section 55 of giving notice of winding up, shall be construed as referring to the liquidator;

and references to this Part of this Act include references to the Fourth Schedule to this Act.

(2) For the purposes of this Part of this Act, a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Commissioners or officer concerned may have allowed; and, where a person had a reasonable excuse for not doing anything required to be done, lie shall be deemed not to have failed to do it if he did it without unreasonable delay after the excuse had ceased.

PART IX TAXATION OF RENTS AND CERTAIN OTHER PAYMENTS: INCOME TAX AND SUR-TAX

Interpretation (Part IX).

83.—(1) In this Part of this Act, save where the context otherwise requires—

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

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

"long lease" means a lease granted for a term exceeding fifty years;

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

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

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

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

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

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

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

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

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

Taxation of rents under short lease.

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

(2) Notwithstanding anything in Rule 2 of the Rules applicable to the said Case VI, income tax in respect of profits or gains chargeable by virtue of this section shall in all cases be computed on the full amount of the profits or gains of the year of assessment.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Additional deductions in certain cases.

85.—(1) In this section—

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

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

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

( c ) the rent to which the lessor is entitled or, in a case in which a deduction is allowable under paragraph (c) of subsection (4) of section 84 of this Act in arriving at the amount of the profits or gains for the purpose of assessment under Case VI of Schedule D, the said rent reduced by the deduction allowable as aforesaid, does not exceed fifty-two pounds per annum;

"profit rent" means, in relation to any premises in respect of which a lessor is, in a year of assessment, entitled to rent under a short lease, the amount (hereafter in this definition referred to as the assessable amount) on which, but for the provisions of the following subsections of this section, the lessor would have been chargeable for the year of assessment under Case VI of Schedule D, in respect of profits or gains arising from the said rent, increased by any deduction allowed under paragraph (a) of subsection (4) of section 84 of this Act in arriving at the assessable amount and reduced by the amount, if any, by which any deduction allowed under paragraph (b) of the said subsection (4) in arriving at the assessable amount falls short of the deduction which would have been so allowable if—

(i) no deduction had been allowable under the said paragraph (a), and

(ii) the said paragraph (b) and subsection (5) of the said section 84 applied to any payment to which section 94 of this Act applies as they apply to any rent payable under a short lease.

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

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

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

(3) ( a ) This subsection applies to any premises which, in the year of assessment—

(i) is not a premises to which the immediately preceding subsection applies, and

(ii) is not occupied for the purposes of any trade, profession or vocation.

For the purposes of this paragraph premises shall not be deemed to be occupied for the purposes of a trade, profession or vocation where the premises are mainly occupied for residential purposes and no part thereof is occupied for the purposes of a trade but a part thereof is occupied for the purposes of a profession or vocation.

( b ) Where, for any of the years of assessment 1963-64, 1964-65 and 1965-66, a person is chargeable under Case VI of Schedule D in respect of profits or gains arising from any rent in respect of any premises to which this subsection applies under a short lease, the amount on which he would, apart from this subsection, be so chargeable shall be reduced by an amount equal to one-fifth of the profit rent:

Provided that, for any year of assessment, the aggregate of all amounts by which profits or gains arising to any person are reduced by virtue of this paragraph shall not exceed one hundred pounds.

(4) Where in any year of assessment both subsection (2) and subsection (3) of this section have effect in relation to profits or gains arising to any person, the aggregate of all amounts by which such profits or gains, other than excepted profits or gains, are reduced, whether by virtue of the said subsection (2) or by virtue of the said subsection (3), shall not exceed two hundred pounds.

(5) Each of the references, in the provisos to paragraph (b) of subsection (2) and paragraph (b) of subsection (3) and in subsection (4) of this section, to profits or gains arising to any person shall be deemed to include, in the case of an individual, references to profits or gains arising to the wife or husband of the individual.

In this and the following subsection "wife" means a married woman who under subsection (1) of section 12 of the Finance Act, 1958 , is to be treated as living with her husband, and "husband" has a corresponding meaning.

(6) ( a ) Where in any year of assessment profits or gains arise to both a husband and a wife from rents in respect of premises to which either subsection (2) or subsection (3) of this section applies and the aggregate (hereafter in this subsection referred to as the gross aggregate) of all amounts by which the said profits or gains would have fallen to be reduced under this section, if the provisos to paragraph (b) of subsection (2) and to paragraph (b) of subsection (3) and subsection (4) (hereafter in this subsection referred to as the limiting provisions) had been omitted from this section, exceeds what, in consequence of the operation of any one or more of the limiting provisions is the aggregate (hereafter in this subsection referred to as the net aggregate) of all amounts by which the said profits or gains may be reduced, the aggregate of all amounts by which the profits or gains arising to either spouse are reduced shall not exceed the sum which bears to the net aggregate the same proportion as the aggregate of all amounts by which, but for the limiting provisions, the profits or gains arising to that spouse would have fallen to be reduced bears to the gross aggregate.

( b ) The foregoing paragraph shall not apply where, in a year of assessment, profits or gains arise to one only of the spouses from rent in respect of premises to which subsection (3) of this section applies and subsection (4) thereof does not operate.

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

Treatment of premiums, etc., as rent.

86.—(1) Where the payment of any premium is required under a lease, or otherwise under the terms subject to which a lease is granted, and the lease is a short lease, the lessor shall be treated for the purposes of section 84 of this Act as becoming entitled, when the lease is granted, to an amount by way of rent (in addition to any actual rent) equal to the amount of the premium reduced by one-fiftieth of that amount for each complete period of twelve months, other than the first, comprised in the term of the lease.

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

Provided that this subsection shall not apply in so far as the obligation requires the carrying out of work payment for which would, if the lessor and not the lessee were obliged to carry it out, be deductible from the rent under subsection (4) of section 84 of this Act.

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

(4) ( a ) If an amount of premium by reference to which a person is chargeable to tax by virtue of subsection (1) or subsection (3) of this section is payable by instalments, the following provisions shall, where this subsection applies, have effect in lieu of the said subsection (1) or, as the case may be, the said subsection (3):

(i) each such instalment payable to the lessor for the time being shall be treated for the purposes of section 84 of this Act as if it were rent payable under the lease, and

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

( b ) This subsection applies where the person chargeable by virtue of subsection (1) or subsection (3) of this section by notice in writing, given to the inspector of taxes before the expiration of the year of assessment following that in which he becomes entitled to the first instalment of premium, elects that it shall apply and where such notice of election is given all such additional assessments, alterations of assessments and repayments of tax shall be made as may be necessary.

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

(6) Where the duration of a lease falls to be ascertained for the purposes of this section after a date on which the lease has for any reason come to an end, the duration shall, notwithstanding anything in subsection (2) of section 83 of this Act, be taken to have extended from its commencement to that date; and where the duration falls to be ascertained for the said purposes at a time when the lease is subsisting, the provisions of the said subsection (2) shall be applied in accordance with the circumstances obtaining at that time.

Exclusion of certain lettings.

87.—Neither section 84 nor section 90 of this Act shall have effect in relation to a case in which the rent reserved under a lease (including, where the lease was granted on or after the 6th day of April, 1963, an appropriate sum in respect of any premium payable under the lease) is insufficient, taking one year with another, to defray the cost to the lessor of fulfilling his obligations under the lease and of meeting any expense of maintenance, repairs, insurance and management of the premises subject to the lease which fall to be borne by him, and for this purpose the lessor shall be deemed to bear annually an expense of management (in addition to any actual expense) equal to the amount on which he is liable to bear tax under Schedule A in respect of the premises.

Taxation of certain payments in respect of easements.

88.—Where, in any year of assessment, any person is entitled to any payment, other than a payment to which section 94 of this Act applies, in respect of any easement in relation to any premises, not being premises of the whole of which he is, throughout the period in respect of which the payment is due, the sole occupier for the purposes of Schedule A, the payment shall be treated for the purposes of section 84 of this Act as if it were rent payable in respect of premises under a short lease, and the provisions of that section shall with the necessary adaptations apply accordingly.

Provisions as to assessment.

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

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

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

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

(3) For the purposes of paragraph (a) of the foregoing subsection, any amounts which but for section 86 of this Act would not be taken into account in the computation of profits or gains shall be disregarded.

Relief in respect of losses.

90.—Where for any year of assessment the aggregate amount of the deductions authorised, in relation to any short lease, by subsection (4) of section 84 of this Act exceeds the amount of rent to which the lessor becomes entitled in the year, the excess shall be deemed to be such a loss as is mentioned in section 2 of the Finance Act, 1945 , and the provisions of that section shall apply accordingly.

Relief for amount not received.

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

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

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

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

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

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

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

92.—Where—

( a ) in any period (hereafter in this section referred to as the said period) a person carrying on a trade, profession or vocation is the lessee of premises wholly or partly occupied by him for the purposes thereof, and

( b ) any amount has become chargeable to tax under subsection (1), (2) or (3) of section 86 of this Act, or would have become so chargeable but for subsection (4) of that section, in respect of a premium paid, or deemed to have been paid, to the lessor (whether the lessee concerned was the person carrying on the trade, profession or vocation or his predecessor in title),

the computation, for the purpose of assessment under Case I or Case II of Schedule D, of the profits or gains of the trade, profession or vocation for the said period shall be made as if the person by whom it is carried on had paid in respect of the premises an amount of rent (in addition to any rent actually paid) equal to the amount chargeable as aforesaid (or where the said person is lessee under the lease for a part only of the said period, a proportionate part of that amount) multiplied by the fraction of which the numerator is the number of days in the said period and the denominator is the number of days in the duration of the lease as determined for the purposes of the relevant subsection of the said section 86.

Deductions by reference to premiums paid in computation of profits for purposes of Part IX.

93.—(1) Where any amount has become chargeable under subsection (1), (2) or (3) of section 86 of this Act, or would have become so chargeable but for subsection (4) of that section, in respect of a premium paid or deemed to have been paid under the terms subject to which a lease is granted, then, subject to the provisions of the following subsections of this section, the lessee, whether or not he is the original lessee, shall be deemed for the purposes of subsection (4) of section 84 of this Act to have paid by way of rent under the lease (in addition to any rent actually paid) in each year of assessment during which he is the lessee a payment which bears to the said amount (hereafter in this section referred to as the amount chargeable on the superior lease) the same proportion as the length of the period within that year during which he was the lessee bears to the length of the term of the lease.

(2) Where—

( a ) any amount has, or would have, become chargeable as mentioned in the immediately preceding subsection, and

( b ) the lessee would, apart from this subsection, have been chargeable to tax under the said section 86 on any amount in respect of premium paid, or deemed to have been paid, to him on a sub-lease of all or any part of the premises comprised in the lease, with or without other premises,

the amount on which he is so chargeable shall, where no claim is made by him under subsection (4) of the said section 86, be the excess (if any) of the amount on which he would have been chargeable as aforesaid over the appropriate fraction of the amount chargeable on the superior lease, or, if the premises comprised in the lease and sub-lease respectively are not co-extensive, the appropriate fraction of that amount proportionately adjusted.

(3) Where subsection (2) of this section has effect, subsection (1) shall apply for the year of assessment for which the lessee would have been chargeable as aforesaid and subsequent years only if the said appropriate fraction exceeds the amount on which the lessee would have been so chargeable, and shall then apply as if the amount chargeable on the superior lease had been equal to the excess:

Provided that where part only of the premises comprised in the lease is comprised in the sub-lease, the said subsection (1) and this subsection shall be applied separately in relation to that part of the premises and to the remainder of those premises, but as if for any reference to the amount chargeable on the superior lease there were substituted a reference to that amount proportionately adjusted.

(4) For the purposes of this section the appropriate fraction of the amount chargeable on the superior lease is the slim which bears to that amount the same proportion as the term of the sub-lease bears to the term of the lease.

(5) Any proportionate adjustment referred to in this section shall be made by the inspector of taxes according to the best of his knowledge and judgment, and any such adjustment so made may be amended by the Special Commissioners, or by the Circuit Judge, on the hearing, or the re-hearing, of an appeal against an assessment made on the basis of the adjustment.

Taxation of rents under long leases and certain other payments.

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

( a ) any rent payable in respect of any premises the property in which is not separately assessed and charged under Schedule A, or in respect of any easement, where the premises or easement is used, occupied or enjoyed in connection with any of the concerns the profits of which are chargeable to tax under Case I of Schedule D by virtue of section 8 of the Finance Act, 1929 ,

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

( c ) any yearly interest, annuity, rentcharge, fee farm rent or other annual payment reserved in respect of, or charged on or issuing out of, any premises, not being a rent payable under a lease or in respect of premises used, occupied or enjoyed as mentioned in paragraph (a)of this subsection or such a rentcharge as is mentioned in Rule 6 of No. VIII of Schedule A,

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

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

(2) Neither Rule 1 nor Rule 4 of No. VIII of Schedule A shall have effect in relation to any payment to which this section applies.

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

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

( b ) be treated, for the purposes of paragraph (m) of Rule 3 of the Rules applicable to Cases I and II of Schedule D and of Rules 19 and 21 of the General Rules, as if it were a royalty paid in respect of the user of a patent:

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

(4) ( a ) A deduction from a payment to which this section applies, made on account of income tax at any time after the 5th day of April, 1963, and before the passing of this Act, which would have been a legal deduction if the foregoing provisions of this section had been in force at that time, shall be deemed for all purposes to have been a legal deduction to which all the provisions of Rule 19 or Rule 21 of the General Rules, as the case may be, were applicable.

( b ) Subsection (2) of section 211 of the Income Tax Act, 1918, shall have effect as if this section had come into operation on the 6th day of April, 1963, and "other annual payment", in both places where occurring in that subsection, shall be construed as including a reference to any payment to which this section applies not being a payment of rent, interest or annuity.

Returns, etc., for purposes of Part IX.

95.—For the purpose of obtaining particulars of profits or gains chargeable to tax under Case VI of Schedule D by virtue of this Part of this Act, the inspector of taxes may by notice in writing require—

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

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

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

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

Cesser, etc.

96.—(1) Section 6 of the Finance Act, 1932 , and the Rule added to the Rules applicable to Case III of Schedule D by that section shall not have effect for the year 1963-64 or any subsequent year of assessment.

(2) Notwithstanding anything in this Part of this Act, section 37 of the Income Tax Act, 1918, shall be construed and have effect as if any tax chargeable under Schedule D by virtue of the provisions of this Part of this Act were chargeable under Schedule A.

(3) Where for any year of assessment a deduction may be made under subsection (4) of section 84 of this Act in respect of the cost of maintenance, repairs, insurance or management of any premises, no relief from income tax under Schedule A in respect of the premises shall be allowed under Rule 8 of No. V of that Schedule.

PART X MISCELLANEOUS

Capital Services Redemption Account.

97.—(1) In this section—

"the principal section" means section 22 of the Finance Act, 1950 ;

"the 1962 amending section" means section 19 of the Finance Act, 1962 ;

"the thirteenth additional annuity" means the sum charged on the Central Fund under subsection (4) of this section;

"the Minister", "the Account" and "capital services" have the same meanings respectively as they have in the principal section.

(2) Subsection (4) of the 1962 amending section shall, in relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of March, 1964, have effect with the substitution of "£1,309,854" for "£1,334,935".

(3) Subsection (6) of the 1962 amending section shall have effect with the substitution of "£830,974" for "£863,530".

(4) A sum of £1,431,786 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 March, 1964.

(5) The thirteenth 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 thirteenth additional annuity, not exceeding £926,179 in any financial year, may be applied towards defraying the interest on the public debt.

(7) The balance of the thirteenth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section,

Exemption from income tax and corporation profits tax of profits of lotteries.

98.—(1) This section applies to any lottery to which a licence under Part IV of the Gaming and Lotteries Act, 1956 , applies and shall be deemed to come into force and shall take effect as on and from the 1st day of March, 1956.

(2) ( a ) Exemption shall be granted from corporation profits tax and, subject to the next paragraph, from income tax in respect of profits from any lottery to which this section applies.

( b ) In relation to income tax the profits from a lottery for the year 1963-64 or a previous year of assessment shall, for the purposes of this section, be taken to be the full amount thereof on which the person by whom it was carried on would, but for this section, have been chargeable to tax for that year under Schedule D reduced by—

(i) a sum equal to the aggregate of all payments made in that year from which, if the profits had been chargeable as aforesaid, tax would have been deductible under Rule 19 of the General Rules on the ground that they were payments made out of those profits, and

(ii) where the lottery was carried on by a body of persons, a sum equal to so much of the profits which would have been chargeable as aforesaid as was, before the passing of this Act, applied in payment of dividends.

( c ) All such discharges of assessments, amendments of assessments and repayments of tax shall be made in relation to the year 1963-64 and previous years of assessment as may be appropriate having regard to the foregoing paragraphs of this subsection.

(3) Nothing in this section shall render improper any deduction of income tax made before the passing of this Act which would have been a proper deduction if this section had not been enacted.

Partial cesser of section 38 (2) of Finance Act, 1924 .

99.—Subsection (2) of section 38 of the Finance Act, 1924 , shall cease to have effect in so far as it provides that moneys due or payable to or for the benefit of the Central Fund are to be paid in priority to other debts.

Form of execution order in certain Revenue cases.

100.—(1) This section applies to any proceedings instituted in the High Court or the Circuit Court for the recovery of any tax or duty under the care and management of the Revenue Commissioners, or for any fine, penalty or forfeiture in connection with any such tax or duty or incurred under or imposed by any Act relating to customs or excise.

(2) Notwithstanding anything to the contrary provided by or under any enactment or by any rule of court—

( a ) where judgment against the defendant for any amount is given by the High Court in proceedings to which this section applies, the form of execution order to be issued in relation to the amount shall be in the form set out in Part I of the Fifth Schedule to this Act, and the sum recoverable for the costs of the execution order shall be the sum of £1 10s. 0d.,

( b ) where such judgment is given by the Circuit Court, the form of execution order to be so issued shall be in the form set out in Part II of the Fifth Schedule to this Act, and the sum recoverable for the costs of the execution order shall be the sum of 16s. 6d.

Levying of fees and expenses under certain certificates.

101.—(1) In this section—

"section 7 certificate" means a certificate issued under section 7 of the Finance Act, 1923 , or that section as extended by section 55 of the Finance Act, 1958 ;

"execution order" means an execution order within the meaning of the Enforcement of Court Orders Act, 1926 .

(2) A county registrar or sheriff executing a section 7 certificate shall be entitled—

( a ) if the sum certified in the certificate to be in default exceeds six hundred pounds, to charge and (where appropriate) to add to that sum and (in any case) to levy under the certificate such fees and expenses, calculated according to the scales appointed by the Minister for Justice under paragraph (a) of subsection (1) of section 14 of the Enforcement of Court Orders Act, 1926 , and for the time being in force, as he would be entitled so to charge or add and to levy if the certificate were an execution order of the High Court,

( b ) if the sum certified in the certificate to be in default exceeds fifty pounds but does not exceed six hundred pounds, to charge and (where appropriate) to add to that sum and (in any case) to levy under the certificate such fees and expenses, calculated according to the said scales, as he would be entitled so to charge or add and to levy if the certificate were an execution order of the Circuit Court, and

( c ) if the sum certified in the certificate to be in default does not exceed fifty pounds, to charge and (where appropriate) to add to that sum and (in any case) to levy under the certificate such fees and expenses, calculated according to the said scales, as he would be entitled so to charge or add and to levy if the certificate were an execution order of the District Court.

(3) ( a ) The foregoing subsections of this section shall have and be deemed always to have had effect as on and from the 1st day of October, 1926, and accordingly no section 7 certificate issued during the period which began on that day and ended on the passing of this Act shall be or ever have been made void or in any way prejudiced by the addition to the sum thereby certified to be in default of any fees or expenses which might lawfully have been so added if those subsections had been in force during that period, and no levy during that period of any such fees or expenses so added which would have been a lawful levy if those subsections had been in force during that period shall be or ever have been unlawful.

( b ) For the purposes of this subsection, the reference in subsection (2) of this section to a sheriff shall be construed as including a reference to an undersheriff and, in relation to section 7 certificates issued before the 8th day of December, 1953, the references therein to six hundred pounds shall be construed as references to three hundred pounds and the references therein to fifty pounds shall be construed as references to twenty-five pounds.

(4) No section 7 certificate issued before the 1st day of October, 1926, shall be or ever have been made void or in any way prejudiced by the addition to the sum thereby certified to be in default of any fees which might lawfully have been so added if the certificate had been an execution order, and no levy before the passing of this Act of any such fees so added which would have been a lawful levy if the section 7 certificate had been an execution order shall be or ever have been unlawful.

Amendment of section 14 of Finance Act, 1962 .

102.—Subsection (5) of section 14 of the Finance Act, 1962 , is hereby amended by the insertion of "and the provisions of every rule of court so relating" before "shall apply".

Amendment of temporary provisions relating to Road Fund.

103.—(1) Section 1 of the Road Fund (Grants and Advances) (Temporary Provisions) Act, 1959 , is hereby amended by the substitution of "four" for "five".

(2) Section 1 of the Road Fund (Grants) (Temporary Provisions) Act, 1962 , is hereby amended by the substitution of "five" for "three" in subsection (1) and by the substitution of "nine" for "seven" in subsection (2).

Repeals.

104.—(1) ( a ) Each enactment specified in column (2) of Part 1 of the Sixth Schedule to this Act is hereby repealed to the extent specified in column (3) of that Part.

( b ) Paragraph (a)of this subsection shall be deemed to have come into operation on the 1st day of January, 1963.

(2) ( a ) Each enactment specified in column (2) of Part II of the Sixth Schedule to this Act is hereby repealed to the extent specified in column (3) of that Part.

( b ) Paragraph (a)of this subsection shall be deemed to have come into operation on the 6th day of April, 1963.

(3) Each enactment specified in column (2) of Part III of the Sixth Schedule to this Act is hereby repealed to the extent specified in column (3) of that Part.

(4) ( a ) The enactment specified in column (2) of Part IV of the Sixth Schedule to this Act is hereby repealed to the extent specified in column (3) of that Part.

( b ) Paragraph (a)of this subsection shall come into operation on the 1st day of August, 1963, or the date of the passing of this Act, whichever is the later.

(5) ( a ) Each enactment specified in column (2) of Part V of the Sixth Schedule to this Act is hereby repealed to the extent specified in column (3) of that Part.

( b ) Paragraph (a)of this subsection shall come into operation on the 6th day of April, 1964.

(6) ( a ) The enactment specified in column (2) of Part VI of the Sixth Schedule to this Act is hereby repealed to the extent specified in column (3) of that Part.

( b ) Paragraph (a)of this subsection shall come into operation on the 6th day of April, 1965.

Care and Management of taxes and duties.

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

Short title, construction and commencement.

106.—(1) This Act may be cited as the Finance Act, 1963 .

(2) Parts I and IX and (so far as relating to income tax) Parts VII and VIII and section 98 of this Act shall be construed together with the Income Tax Acts.

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

(4) Part IV of and the Fourth Schedule to this Act and (so far as relating to corporation profits tax) Parts VII and VIII and section 98 of this Act shall be construed together with Part V of the Finance Act, 1920, and the enactments amending or extending that Part.

(5) Part V of this Act shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6) Parts I and IX of this Act shall, save as is otherwise expressly provided therein, be deemed to come into force and shall take effect as on and from the 6th day of April, 1963.

(7) 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.

Sections 46, 48, 52.

FIRST SCHEDULE

EXEMPTED ACTIVITIES (TURNOVER TAX)

Sales of goods for delivery abroad.

Sales by farmers and fishermen of their own produce otherwise than in connection with the carrying on of the business of a shop or similar retail business.

Sales of live animals otherwise than in connection with the carrying on of the business of a shop or similar retail business.

Sales (subject to such limitations, if any, as may be specified by regulations under section 52 of this Act) of earth, stone, gravel, sand and cement.

Sales (subject to such limitations, if any, as may be specified by regulations under section 52 of this Act) of seeds, fertilisers, animal feeding-stuffs and other materials and substances of a kind used in large quantities by farmers and fishermen for the purposes of their occupation (other than hydrocarbon oils for domestic use or road transport).

Sales (subject to such limitations, if any, as may be specified by regulations under section 52 of this Act) of plant, machinery and equipment in general use by farmers and fishermen (other than motor vehicles designed for the conveyance of persons by road).

Sales (subject to such limitations, if any, as may be specified by regulations under section 52 of this Act) of hydrocarbon oils other than hydrocarbon oils for domestic use or for road transport.

Provision of banking and insurance services.

Provision of services given in return for wages and salaries within the scope of Schedule E of the Income Tax Act, 1918.

Provision of services provided for agricultural, industrial or commercial purposes other than services provided in the course of carrying on a business which consists in whole or in part of selling goods by retail.

Provision of services of a professional or educational nature other than services provided in the course of carrying on a business which consists in whole or in part of selling goods by retail.

Provision of services provided by the State and by local authorities.

Provision of services provided by hospitals, nursing homes and similar establishments.

Building, and the installation of heating, lighting, plumbing and sanitary fixtures and fittings, and the repairing, painting and decorating of buildings and of fixtures attached thereto.

Provision of transport.

Letting of houses and accommodation and provision of board and lodging otherwise than by the proprietors of hotels.

Money-lending otherwise than in connection with hire-purchase or credit-sale transactions.

Advertising.

Sections 50, 51, 64.

SECOND SCHEDULE

DESCRIPTIONS OF GOODS (TURNOVER TAX).

Food and drink.

Tobacco.

Furniture and furnishings other than office furniture and equipment.

Pottery, glassware, cutlery and cooking utensils.

Domestic kitchen equipment.

Clocks and watches.

Articles for personal use or adornment.

Motor vehicles designed for the conveyance of persons by road.

Sports goods.

Musical instruments.

Radio and television sets and gramophones.

Gramophone records.

Hydrocarbon oils for domestic use or for road transport.

Sections 73, 74, 76.

THIRD SCHEDULE

PROVISIONS REFERRED TO IN SECTIONS 73, 74 AND 76 OF THIS ACT.

Column 1	Column 2	Column 3
Income Tax Act, 1918 Subsection (2) of section 7	Income Tax Act, 1918 Section 102	Income Tax Act, 1918 Rule 1 of the Rules under the heading commencing with the words "Rules as to interest, &c., with the payment" in the Rules applicable to Schedule C
Subsection (3) of section 7	Section 103
Section 8	Section 104
Section 100	Section 105
Section 101	Section 139	Paragraph (2) of Rule 21 of the General Rules
Rule 10 of the Rules applicable to Cases I and II of Schedule D	Finance Act, 1922 Rules
Section 22	Finance Act, 1923
Rule 17 of the General Rules	Paragraph 4 of First Schedule	Section 6
		Finance Act, 1958
Finance Act, 1958	Paragraph 11 of First Schedule	Paragraph ( a ) of sub-section (1) of section (39)
Subsection (5) of section 9	Finance Act, 1938
Finance Act, 1961	Subsection (2) of section 6
Subsection (1) of section 13	Subsection (4) of section 14
	Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956
	Section 10
	Finance Act. 1958
	Paragraph (b) of sub-section (1) of section 39
	Finance (Miscellaneous Provisions) Act, 1958
	Section 6
	This Act
	Section 16
	Section 17
	Section 95

Section 81.

FOURTH SCHEDULE

APPLICATION OF PART VIII TO CORPORATION PROFITS TAX

1. (1) Where the secretary of a company fails to comply with any of the provisions of subsections (1) and (2) of section 55 of the Finance Act, 1920—

( a ) the company shall be liable to a penalty of five hundred pounds, except in the case mentioned in paragraph 2 of this Schedule and, if, in relation to subsection (1) of the said section, the failure continues after judgment has been given by the court before which proceedings for the penalty have been commenced, to a further penalty of fifty pounds for each day on which the failure so continues, and

( b ) the secretary shall be liable to a separate penalty of one hundred pounds.

(2) If any person contravenes the provisions of subsection (3) of section 56 of the Finance Act, 1920, he shall be liable to a penalty of five hundred pounds.

2. Where any such failure as is mentioned in subparagraph (1) of paragraph 1 of this Schedule is in relation to subsection (1) of section 55 of the Finance Act, 1920, and continues after the expiration of one year from the service of the notice by which the requirement was made, the first of the penalties mentioned in the said subparagraph for which the company is liable shall be one thousand pounds, while the secretary shall be liable to a penalty of two hundred pounds.

3 (1) Where the secretary of a company fraudulently or negligently delivers any incorrect return or particulars under the provisions of subsection (1) of section 55 of the Finance Act, 1920, or makes any incorrect statement or declaration in connection with any application for relief under any of the enactments relating to corporation profits tax, the company shall be liable to a penalty of—

( a ) five hundred pounds, and

( b ) the amount, or, in the case of fraud, twice the amount, of the difference specified in paragraph 4 of this Schedule

and the secretary shall be liable to a separate penalty of one hundred pounds, or, in the case of fraud, of two hundred pounds.

(2) Where any such return, particulars, statement or declaration was or were delivered or made by the secretary of a company neither fraudulently nor negligently and it comes to his notice that it or they was or were incorrect, then, unless the error is remedied without unreasonable delay, the return, particulars, statement or declaration shall be treated for the purposes of this paragraph as having been negligently delivered or made by him.

4. The difference referred to in paragraph 3 of this Schedule is the difference between—

( a ) the total amount of tax chargeable in assessments for any accounting period which is or includes the period or any part of the period to which the return, particulars, statement or declaration relates or relate; and

( b ) the amount which would have been the amount so chargeable if the return, particulars, statement or declaration as delivered or made had been correct.

5. A person who assists in or induces the making or delivery for any purposes of corporation profits tax of any return, account, statement or declaration which he knows to be incorrect shall be liable to a penalty of five hundred pounds.

6. (1) Subject to subparagraph (2) of this paragraph proceedings for the recovery of any penalty under this Schedule may be commenced at any time within six years next after the date on which it was incurred.

(2) Any proceedings for the recovery of any penalty under subparagraph (1) of paragraph 3 of this Schedule shall not be out of time by reason that they are commenced after the time allowed by the preceding subparagraph of this paragraph.

7. For the purposes of this Schedule, any assessment which can no longer be varied by the Special Commissioners on appeal or by the order of any court shall be sufficient evidence that the profits in respect of which tax is charged in the assessments arose as stated therein.

8. Subsection (4) of section 55 of the Finance Act, 1920, is hereby amended by the substitution of "to a fine of" for "on summary conviction to a fine not exceeding".

9. (1)Without prejudice to any other mode of recovery of a penalty under this Schedule or subsection (4) of section 55 of the Finance Act, 1920, an officer of the Revenue Commissioners, authorised by them for the purposes of this subparagraph, may sue in his own name by civil proceedings for the recovery of the penalty in the High Court as a liquidated sum, and the provisions of section 94 of the Courts of Justice Act, 1924 , shall apply accordingly.

(2) If an officer who has commenced proceedings pursuant to this paragraph, or who has continued the proceedings by virtue of this subparagraph, dies or otherwise ceases for any reason to be an officer authorised for the purposes of subparagraph (1) of this paragraph—

( a ) the right of such officer to continue the proceedings shall cease and the right to continue them shall vest in such other officer so authorised as may be nominated by the Revenue Commissioners,

( b ) where such other officer is nominated under clause (a)of this subparagraph, he shall be entitled accordingly to be substituted as a party to the proceedings in the place of the first-mentioned officer, and

( c ) where an officer is so substituted, he shall give notice in writing of the substitution to the defendant.

(3) In proceedings pursuant to this paragraph a certificate, signed by a Revenue Commissioner certifying the following facts, namely, that a person is an officer of the Revenue Commissioners and that he has been authorised by them for the purposes of subparagraph (1) of this paragraph, shall be evidence until the contrary is proved of those facts.

(4) In proceedings pursuant to this paragraph, a certificate signed by a Revenue Commissioner certifying the following facts, namely, that the plaintiff has ceased to be an officer of the Revenue Commissioners authorised by them for the purposes of subparagraph (1) of this paragraph, that another person is an officer of the Revenue Commissioners, that such other person has been authorised by them for the purposes of subparagraph (1) of this paragraph and that he has been nominated by them, in relation to the proceedings, for the purposes of subparagraph (2) of this paragraph, shall be evidence until the contrary is proved of those facts.

(5) In proceedings pursuant to this paragraph, a certificate certifying the facts referred to in subparagraph (3) or (4) of this paragraph and purporting to be signed by a Revenue Commissioner may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been so signed.

(6) In proceedings under this paragraph for recovery of a penalty referred to in subparagraph (1) of paragraph 1 or paragraph 2 of this Schedule—

( a ) a certificate signed by an officer of the Revenue Commissioners which certifies that he has examined the relevant records and that it appears from them that, during a stated period, any stated returns, particulars or notice referred to in section 55 of the Finance Act, 1920, were not or was not received from the secretary shall be evidence until the contrary is proved that the secretary did not, during that period, furnish those returns or particulars or give that notice,

( b ) a certificate certifying as provided for in clause (a)of this subparagraph, and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by such officer.

(7) Subject to this Schedule, the rules of the High Court for the time being applicable to civil proceedings shall apply to proceedings pursuant to this paragraph.

Section 100

FIFTH SCHEDULE

FORMS OF EXECUTION ORDERS

PART I

THE HIGH COURT

REVENUE

19 No.

Between A. B., Plaintiff,

and C.D., Defendant.

To the several Sheriffs and County Registrars and to the Commissioner and members of the Garda Síochána, greeting.

WHEREAS lately in the High Court it was adjudged that the person named in Part I of the Schedule hereto (in this Order referred to as the Debtor) is justly indebted to the Minister for Finance for the benefit of the Central Fund in the sum stated in column (1) of Part II of that Schedule together with the sum stated in column (2) of that Part for costs as appears of record in the High Court:

You the several Sheriffs and County Registrars are hereby commanded to take in execution the goods and chattels of the Debtor to satisfy the aggregate amount stated in column (4) of the said Part II, being the aggregate amount of those sums together with the sum stated in column (3) of the said Part II for the costs of this Order.

AND, save where the Debtor is a body corporate, in the event of the goods or chattels of the Debtor not being sufficient to satisfy that aggregate, or in the event of the Debtor having no goods or chattels which can be taken in execution to satisfy that aggregate, you, the Sheriff or County Registrar to whom this order is handed for execution, are hereby commanded to give a certificate to that effect in one of the forms endorsed hereon to the Commissioner of the Garda Síochána.

AND you, the Commissioner and members of the Garda Síochána, are hereby commanded, upon the receipt of this Order by such Commissioner, with the certificate endorsed hereon signed by the said Sheriff or County Registrar, to take and convey the Debtor to the nearest prison and there deliver him to the Governor of such prison there to remain and be kept by such Governor until satisfaction be made of that aggregate, or until the expiration of the period of six months, whichever shall be the shorter.

SCHEDULE

PART I

Name of Debtor:

PART II

(1)

Debt

(2)

Costs

(3)

Costs of this Order

(4)

Aggregate of sums stated in columns (1), (2) and (3)

£ s. d.

1 10 0

£ s. d

BY ORDER, Chief Justice of Ireland,

the day of , 19 .

This Order is issued by

The Solicitor for the Plaintiff

Levy the aggregate amount stated in column (4) of Part II of the Schedule to the within Order.

_____________________________

Sheriff/County Registrar

CERTIFICATE

TO THE COMMISSIONER OF THE GARDA SÍOCHÁNA.

I hereby certify that the goods and chattels of the Debtor named in Part I of the Schedule to the within Order are not sufficient to satisfy the aggregate amount stated in column (4) of Part II of that Schedule and that the amount levied is the amount stated hereunder leaving a balance of the difference between that amount and the said aggregate amount to be satisfied.

£ s. d.

AMOUNT LEVIED:

GIVEN under my hand this day of , 19 .

__________________________

Sheriff/County Registrar

TO THE COMMISSIONER OF THE GARDA SÍOCHÁNA.

I hereby certify that the Debtor named in Part I of the Schedule to the within Order has no goods or chattels which can be taken in execution to satisfy the aggregate amount stated in column (4) of Part II of that Schedule.

GIVEN under my hand this day of , 19 .

_____________________________

Sheriff/County Registrar

PART II

THE CIRCUIT COURT

REVENUE

............................................................ ......................................................... Circuit

County ............................................................ .......................................................

Between

A. B., Plaintiff,

and

C.D., Defendant.

To the several Sheriffs and County Registrars and to the Commissioner and members of the Garda Síochána, greeting.

WHEREAS lately in the Circuit Court it was adjudged that the person named in Part I of the Schedule hereto (in this Order referred to as the Debtor) is justly indebted to the Minister for Finance for the benefit of the Central Fund in the sum stated in column (1) of Part II of that Schedule together with the sum stated in column (2) of that Part for costs as appears of record in the Circuit Court:

AND, save where the Debtor is a body corporate, in the event of the goods or chattels of the Debtor not being sufficient to satisfy that aggregate, or in the event of the Debtor having no goods or chattels which can be taken in execution to satisfy that aggregate, you, the Sheriff or County Registrar to whom this Order is handed for execution, are hereby commanded to give a certificate to that effect in one of the forms endorsed hereon to the Commissioner of the Garda Síochána.

SCHEDULE

PART I

Name of Debtor:

PART II

(1)	(2)	(3)	(4)
Debt	Costs	Costs of this Order	Aggregate of sums stated in columns
			(1).(2) and (3)
£ s. d.	£ s. d	£ s. d.	£ s. d
		1 10 0

Dated this day of , 19 .

By the Court.

County Registrar.

This Order is issued by

The Solicitor for the Plaintiff

Levy the aggregate amount stated in column (4) of Part II of the Schedule to the within Order.

_____________________________

Sheriff/County Registrar

CERTIFICATE

TO THE COMMISSIONER OF THE GARDA SÍOCHÁNA.

	£ s. d.
AMOUNT LEVIED:
GIVEN under my hand this	day of	, 19 .

_________________________

Sheriff/County Registrar

TO THE COMMISSIONER OF THE GARDA SÍOCHÁNA.

GIVEN under my hand this

day of

, 19 .

________________________

Sheriff/County Registrar

Section 104.

SIXTH SCHEDULE

ENACTMENTS REPEALED.

PART I.

(1) Session and Chapter	(2) Short Title	(3) Extent of Repeal
10 & 11 Geo. 5, c. 18	Finance Act, 1920	In paragraph (h)of the proviso to subsection (2) of 53 the words from "and in the case" to the end of the paragraph.
11 & 12 Geo. 6, c. 32	Finance Act, 1921	Section 53.
8 & 9 Geo. 5, c. 40	Income Tax Act, 1918	The words "following the year" in subsection (1) of section 8; subsection (4) of section 39; sections 110, 122, 124 and 152 subsection (2) of section 158 the words "and if he has failed to give the particulars required by subsection (2) of this section in the demand note, he shall give them in the receipt" in subsection (3) of section 158; the words recorder or county court in subsection (4) of section 149, in subsection (4) of section 187, in subsection (1) of section 196 where they occur after the words "to the said" and in subsection (2) and in subsection (3) of section 198; the words ", as the case may be," where they occur before, the words "any statement" in subsection (1) of section 196; section 203, Rule 5 of No. III of Schedule A; in Rule 16 of the Rules applicable to Cases 1 and II of Schedule D: all words from the words "and a person" to the end of the Rule; Rule 4 of the Miscellaneous Rules applicable to Schedule D: Rule 18 of the Rules applicable to Schedule E.
11 & 12 Geo. 5, c. 32	Finance Act, 1921	In paragraph ( b ) of subsection (1) of section 30, the words "the work in connection with the husbandry is mainly carried on by beneficiaries of the charity and".
No. 27 of 1924	Finance Act, 1924	The words "recorder or county court" in subsections (1), (2) and (3) of section 10.
No. 18 of 1927	Finance Act, 1927	Section 8; the words "made under Schedule D of the Income Tax Act, 1918, or according to the rules applicable to that Schedule or under Schedule E of the said Act" in subsection (1) of section 10.
No. 32 of 1929	Finance Act, 1929	The word "and" at the end of paragraph ( a ) of subsection (1) of section 3 and paragraph ( b ) of that subsection.
No. 18 of 1944	Finance Act, 1944	Section 9.
No. 25 of 1958	Finance Act, 1958	The words "in the case of an assessment to income tax, or the Special Commissioners, in the case of an assessment to sur-tax, "and" or, as the case may be, the Special Commissioners," in sub section (1) of section 10; the words "the Special Commissioners" in sub section (5) of that section, subsection (6) of section 54.
No. 23 of 1961	Finance Act, 1961	Subsection (4) of section 13.
No. 39 of 1961	Courts (Supplemental Provisions) Act, 1961 .	The reference to section 196 of the Income Tax Act, 1918, and the judge of the circuit where the assessment was made contained in the Fourth Schedule at reference number 67.
10 Edw. 7 & 1 Geo. V, c. 3	Finance (1909-10) Act, 1910	The words "at the election of the Commissioners either" and "or to an excise penalty equal to treble the amount of the full duty" in subsection (3) of section 50.
8 & 9 Geo. V. c 40	Income Tax Act, 1918	Subsection (4) of section 7; in paragraph ( a ) of subsection (1) of section 8, the words 11 "and the penalties for failure to make a return"; in subsection (2) of section 8, the words from "and the provisions" to the end of the subsection; section 30 subsection (7) of section 32 in subsection (4) of section 40, the words "and if such claim is made by any person in his own behalf he shall in addition be liable to be charged in treble the tax so chargeable"; in subsection (1) of section 100, the words "true and correct"; subsection (2) of section 102; in paragraph ( a ) of subsection (1) of section 103, the words " true and correct"; in subsection (1) of section 105, the words from "and the provisions to the words "any such return"; sections 107 and 132; in subsection (3) of election 139, the words from "and in default" to the end of the subsection; sections; sections 140 and 146; Rules 10 and 11 of No. V of the Rules applicable to Schedule A; Rule 6 of the Rules under the heading commencing with the words "Rules as to interest, &c. , with the payment" in the Rules applicable to Schedule in paragraph (2) of Rule 10 of the Rules applicable to Cases I and II of Schedule D, the words "under the penalty prescribed by this Act for default in delivering a statement"; in paragraph (1) of Rule 17 of the General Rules, the words "and the penalties for failure to deliver a statement of profits or gains"; in paragraph (2) of Rule 17 of the General Rules, the words from "and the provisions" to the end of the paragraph; in paragraph (3) of Rule 18 of the General Rules, the words "true and correct"
10 & 11 Geo V c 18.	Finance Act, 1920	In subsection (2) of section 17 the words "and thirty"; subsection(3) of section 55; in subsection (3) of section 56, the words from "Any liquidator" to the end of the subsection.
12 & 13 Geo V. c 17	Finance Act, 1922	Subsection (2) of section 22; in paragraph 11 of the First Schedule, the words from "If any person" to the end of paragraph.
No. 21 of 1923	Finance Act, 1923	Subsection (4) of section 6.
No. 28 of 1925	Finance Act, 1925	Subsections (2), (3), (4) and (5) of section 10.
No. 35 of 1926	Finance Act, 1926	In subsection (2) of section 19 the words from "and there shall be charged" to the end of the subsection.
No. 28 of 1935	Finance Act, 1935	The words ",at the option of the Revenue Commissioners," and "either equal to three times the value of the hydrocarbon oil (including the duty thereon) in respect of which the offence was committed or" and "said" in subsection (12) of section 21.
No. 25 of 1939	Finance Act, 1938	Subsection (3) of section 6; in subsection (4) of section 14, the words from "and if that person" to the end of the subsection.
No. 15 of 1946	Finance Act, 1946	Section 27; Third Schedule.
No. 18 of 1950	Finance Act, 1950	Subsection (5) of section 19.
No. 15 of 1951	Finance Act, 1951	Subsection (3) of section 4.
No. 8 of 1956	Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956	In section 10, the words from "and if" to the end of the section.
No. 25 of 1958	Finance Act, 1958	In subsection (5) of section 9, the words from "and the provisions" to the end of the subsection subsection (3) of section 39 subsection (10) of section 54.
No. 28 of 1958	Finance (Miscellaneous Provisions) Act, 1958	In paragraph ( b ) of section 6 the words from "and if" to the end of the paragraph.
No. 23 of 1961	Finance Act, 1961	In subsection (1) of section 13, the words "true and correct"; in subsection (5) of section 13, the words "and the time limited for the delivery thereof shall be deemed to have expired on the date of its delivery to the inspector"; subsection (6) of section 13; in subsection (7) of section 13, the words of subsection (6)".

PART IV.

(1)

Session of Chapter or Number and Year

(2)

Short Title

(3)

Extent of Repeal

54 & 55 Vict., c. 39.

Stamp Act, 1891

Section 40; in the First Schedule, the head of charge "Bill of Lading".

PART V

(1)

Session and Chapter or Number and Year

(2)

Short Title

(3)

Extent of Repeal

8 & 9 Geo. 5, c. 40

Income Tax Act, 1918

Sections 81 and 82; subsections(1)and 2) of section 86; in paragraph ( c ) of subsection(1) of section 190, the words "special commissioners or"; subsection(3) of section 215.

No. 31 of 1934

Finance Act, 1934

Section 7.

PART VI.

(1)

Session of Chapter or Number and Year

(2)

Short Title

(3)

Extent of Repeal

8 & 9 Geo. 5, c. 40

Income Tax Act, 1918

Sections 168, 172, 175, 116, 177, 178, 179 and 184.

Irish Legislation

Finance Act, 1963