No. 37/1968:

FINANCE (No. 2) ACT, 1968

ARRANGEMENT OF SECTIONS

1 Interpretation.

2 Beer.

3 Spirits.

4 Tobacco.

5 Tobacco (excise duty on certain stocks).

6 Rate of wholesale tax.

7 Additions to certain payments.

8 Exemption from tax of premiums on Investment Bonds.

9 Post Office Savings Bank and trustee savings banks-rates of interest.

10 Care and management of taxes and duties.

11 Short title and construction.

FIRST SCHEDULE

SECOND SCHEDULE

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.

[18th December, 1968.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

1.—(1) In this Act "the Act of 1968" means the Finance Act, 1968 .

(2) 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.

2.—(1) In lieu of the duty of excise imposed by section 18 (1) of the Act of 1968, there shall be charged, levied and paid on all beer brewed within the State on or after the 6th day of November, 1968, a duty of excise at the rate of twenty-four pounds, one shilling and five pence for every thirty-six gallons of worts of a specific gravity of one thousand and fifty-five degrees.

(2) In lieu of the duty of customs imposed by section 18 (2) of the Act of 1968, there shall, as on and from the 6th day of November, 1968, be charged, levied and paid on all beer of any description imported into the State, a duty of customs at the rate of twenty-four pounds, one shilling and eleven pence for every thirty-six gallons of beer of which the worts were before fermentation of a specific gravity of one thousand and fifty-five degrees.

(3) There shall be allowed and paid on the exportation as merchandise or the shipment for use as stores of beer on which it is shown, to the satisfaction of the Revenue Commissioners, that the duty imposed by subsection (1) or subsection (2) of this section has been paid, a drawback calculated according to the original specific gravity of the beer, at the rate of twenty-four pounds, one shilling and eight pence on every thirty-six gallons of beer of which the original specific gravity was one thousand and fifty-five degrees.

(4) Where, in the case of beer which is chargeable with the duty imposed by subsection (1) or subsection (2) of this section or in the case of beer on which drawback under subsection (3) of this section is payable, the specific gravity of the beer is not one thousand and fifty-five degrees, the duty or drawback shall be varied proportionately.

(5) Section 24 of the Finance Act, 1933 , shall not apply or have effect in relation to the duty of customs imposed by this section.

3.—(1) The Finance Act, 1920, shall, as on and from the 6th day of November, 1968, be amended by the substitution in Part I of the First Schedule thereto of the matter set out in Part I of the First Schedule to this Act for the matter inserted in the said Part of the said First Schedule by section 19 of the Act of 1968 and section 3 (1) of the said Finance Act, 1920, shall have effect accordingly.

(2) ( a ) This subsection applies to spirits known as whiskey which at importation are shown to the satisfaction of the Revenue Commissioners to have been wholly manufactured in Northern Ireland and to have been bottled and consigned by the distiller.

( b ) The duties of customs to which subsection (1) of this section relates shall, as on and from the 6th day of November, 1968, be charged, levied and paid on spirits to which this subsection applies at the rate of twelve pounds, ten shillings and eight pence the gallon (computed at proof) in lieu of the rate chargeable under subsection (1) of this section.

( c ) Section 9 (2) of the Finance Act, 1966 , and section 19 (2) of the Act of 1968 are hereby repealed as on and from the 6th day of November, 1968.

(3) ( a ) This subsection applies to spirits, other than spirits mentioned in subsection (2) of this section, which at importation are shown to the satisfaction of the Revenue Commissioners to have been manufactured in, and consigned from, the United Kingdom and to have been manufactured therein from materials other than materials falling within Tariff Heading number 22.08 or Tariff Heading number 22.09 in the Schedule to the Imposition of Duties (No. 159) (Customs Duties and Form of Customs Tariff) Order, 1966.

( b ) The duties of customs to which subsection (1) of this section relates shall, as on and from the 6th day of November, 1968, be charged, levied and paid on spirits to which this subsection applies at the rates set out in Part II of the First Schedule to this Act in lieu of the rates chargeable under subsection (1) of this section.

( c ) The provisions of section 8 of the Finance Act, 1919, shall not apply to the duties imposed by this subsection.

( d ) Section 19 (3) of the Act of 1968 is hereby repealed as on and from the 6th day of November, 1968.

( e ) In this subsection the expression "the United Kingdom" means Great Britain, Northern Ireland, the Isle of Man and the Channel Islands.

(4) The duty of excise imposed by section 3 (2) of the Finance Act, 1920, shall, as on and from the 6th day of November, 1968, be charged, levied and paid at the rate of twelve pounds, ten shillings and three pence the gallon (computed at proof) in lieu of the rate chargeable by virtue of section 9 (3) of the Finance Act, 1966 .

(5) Nothing in this section shall operate to relieve from or to prejudice or affect the additional customs duties or the additional excise duty in respect of immature spirits imposed by section 9 of the Finance Act, 1926 .

4.—(1) Subject to subsections (2) and (3) of this section, the duty of customs on tobacco imposed by section 20 of the Finance Act, 1932 , shall, as on and from the 6th day of November, 1968, be charged, levied and paid at the several rates specified in Part I of the Second Schedule to this Act in lieu of the several rates specified in Parts I, II and III of the Second Schedule to the Act of 1968.

(2) The provisions of section 8 of the Finance Act, 1919, shall apply to the duty mentioned in subsection (1) of this section—

( a ) with the substitution of "the area of application of the Acts of the Oireachtas" for "Great Britain and Ireland", and

( b ) as though the descriptions of manufactured tobacco mentioned in Part I of the Second Schedule to this Act were included in the first column of the Second Schedule to that Act after the expression "manufactured tobacco" and the appropriate preferential rates mentioned in that Part were mentioned in the second column of the said Second Schedule opposite the mention of those goods in the first column thereof in lieu of the rate mentioned in the said second column opposite the mention of manufactured tobacco in the said first column.

(3) ( a ) This subsection applies to manufactured tobacco which was manufactured in, and consigned from, the United Kingdom and was manufactured therein from materials other than materials falling within Tariff Heading number 24.02 in the Schedule to the Imposition of Duties (No. 159) (Customs Duties and Form of Customs Tariff) Order, 1966.

( b ) The customs duty on tobacco mentioned in subsection (1) of this section shall, as on and from the 6th day of November, 1968, be charged, levied and paid on manufactured tobacco to which this subsection applies at the several rates specified in Part II of the Second Schedule to this Act in lieu of the several rates specified in Part I thereof.

( c ) The provisions of section 8 of the Finance Act, 1919, shall apply to the duties imposed by this subsection—

(i) with the substitution of "the area of application of the Acts of the Oireachtas" for "Great Britain and Ireland" and as though the expression "manufactured tobacco" in the first column of the Second Schedule to that Act did not include manufactured tobacco to which this subsection applies,

(ii) as though manufactured tobacco to which this subsection applies, together with the descriptions of such manufactured tobacco in Part II of the Second Schedule to this Act, were mentioned separately in the said first column and the appropriate preferential rates specified in that Part were mentioned in the second column of the Second Schedule to that Act opposite the mention of those goods in the first column thereof, and

(iii) subject to the last paragraph (beginning with "Goods shall not be deemed") of subsection (1) of the said section 8 being disregarded.

( d ) In this subsection the expression "the United Kingdom" means Great Britain, Northern Ireland, the Isle of Man and the Channel Islands.

( e ) The expression "hard pressed tobacco mentioned in Part II of the Second Schedule to this Act and the next paragraph of this subsection has the same meaning as it has in section 17 of the Finance Act, 1940 .

( f ) The expression "other pipe tobacco" mentioned in Part II of the Second Schedule to this Act means manufactured tobacco of kinds normally intended to be used in pipes, not being hard pressed tobacco.

(4) The duty of excise on tobacco imposed by section 19 of the Finance Act, 1934 , shall, as on and from the 6th day of November, 1968, be charged, levied and paid at the several rates specified in Part III of the Second Schedule to this Act in lieu of the several rate specified in Part IV of the Second Schedule to the Act of 1968.

5.—(1) Subject to the provisions of subsection (2) of this section, there shall be charged, levied and paid on all stocks of tobacco of every description which at five o'clock in the afternoon of the 5th day of November, 1968, are in the ownership or possession of a licensed manufacturer of tobacco and in any place in the State other than a bonded warehouse, a duty of excise, payable by the manufacturer, at the following rate, that is to say:

( a ) so far as the stocks consist of unmanufactured tobacco, five shillings and three half-pence for every pound weight of the stocks, and

( b ) so far as the stocks consist of tobacco (including snuff) other than unmanufactured tobacco, five shillings and three half-pence for every pound weight of unmanufactured tobacco from which, in the opinion of the Revenue Commissioners, the stocks were derived.

(2) The duty imposed by subsection (1) of this section shall not be chargeable on any manufactured tobacco (including cigarettes, cigars and snuff other than offal snuff) as to which it is shown to the satisfaction of the Revenue Commissioners that it was at five o'clock in the afternoon of the 5th day of November, 1968, fully prepared for sale by retail and that either—

(i) it was not the product of any operation carried out by any manufacturer in whose ownership or possession it was at that time; or

(ii) it was at that time held as retail stock in premises used for selling tobacco by retail; or

(iii) it was at that time in transit from seller to buyer under a contract of sale:

Provided that no tobacco shall be deemed for the purposes of this subsection to have been fully prepared for sale by retail if, according to the ordinary course of business of the person in whose ownership or possession it was or to whom it was in transit, it had still to be subjected to some further process (other than packing) before being sold by him.

(3) Every licensed manufacturer of tobacco shall, not later than the 12th day of November, 1968, make a return to the Revenue Commissioners in a form approved by them giving such information as they may thereby require and, in particular, showing the quantities by weight of tobacco of every description in his ownership or possession at five o'clock in the afternoon of the 5th day of November, 1968, in any place in the State other than a bonded warehouse.

(4) Every licensed manufacturer of tobacco shall—

( a ) produce, if so required, to any officer of Customs and Excise the trade books and all accounts and documents belonging to or in the possession of such manufacturer which are necessary for verifying the return made in pursuance of subsection (3) of this section, and

( b ) render all reasonable assistance to such officer in the taking of an account of the tobacco which was in the ownership or possession of such manufacturer at five o'clock in the afternoon of the 5th day of November, 1968.

(5) Every licensed manufacturer of tobacco shall, immediately upon making the return required by subsection (3) of this section or on the 12th day of November, 1968, whichever is the earlier pay to the Revenue Commissioners the full amount of the duty mentioned in subsection (1) of this section on any tobacco which was in his ownership or possession at five o'clock in the afternoon of the 5th day of November, 1968, and was chargeable with the said duty, and the Revenue Commissioners may, if they think fit, defer the payment of the duty to a date not later than the 27th day of March, 1969, upon the manufacturer giving security by bond or otherwise to their satisfaction that such duty will be paid.

(6) Every manufacturer required by subsection (3) of this section to make such return as is mentioned in that subsection who either fails to make such return or makes a return which is incomplete, false or misleading in any material respect or fails or refuses to do anything which he is required by subsection (4) of this section to do shall be guilty of an offence under the statutes relating to duties of excise and shall for every such offence incur an excise penalty of fifty pounds and all tobacco in relation to which such offence was committed shall be forfeited.

(7) Where drawback is payable in respect of tobacco on which the excise duty imposed by subsection (1) of this section has been paid, such drawback shall, to the extent of the duty paid in pursuance of the said subsection (1) as determined by the Revenue Commissioners, be a drawback of excise.

6.—Wholesale tax shall, with effect on and from the 1st day of January, 1969, be charged, levied and paid at the rate of ten per cent and, accordingly, "ten per cent." is hereby substituted for "five per cent." in section 7 (1) of the Finance (No. 2) Act, 1966 , with effect on and from that date, and "ten per cent." is hereby substituted for "five per cent." in section 11 (1) of that Act in respect of articles imported on or after that date.

7.—Where the whole or part of the taxable turnover of an accountable person consists of moneys paid under a contract entered into on or after the 1st day of October, 1966, and before the 1st day of January, 1969, the accountable person may, in the absence of agreement to the contrary, recover as an addition to the payments specified in the contract a sum equal to any additional amount payable by him in respect of the moneys on account of the increase in the rate of wholesale tax effected by section 6 of this Act.

8.—The excess of the amount received on the redemption of a unit of securities created and issued by the Minister for Finance under the Central Fund (Permanent Provisions) Act, 1965 , and known as Investment Bonds over the amount which was paid for the unit on its issue shall, save where the excess falls to be taken into account in computing for the purposes of taxation the profits of a trade, be exempt from income tax (including sur-tax) and corporation profits tax.

9.—(1) ( a ) On and after the 1st day of January, 1969—

(i) the rate of interest on a deposit, within the meaning of section 14 (1) of the Finance Act, 1948 , shall be the rate standing prescribed for the time being under this subsection, and.

(ii) section 14 (2) of that Act shall cease to have effect.

( b ) The Minister for Finance may from time to time prescribe by regulations the rate of interest on a deposit within the meaning of the said section 14 (1).

(2) ( a ) On and after the 1st day of January, 1969—

(i) there shall be paid to the trustees of every trustee savings bank interest at the rate standing prescribed for the time being under this subsection, on the moneys paid by such trustees into the special account referred to in section 31 (3) of the Finance Act, 1940 , and

(ii) section 31 (3) (d) of that Act shall cease to have effect.

( b ) The Minister for Finance may from time to time prescribe by regulations the rate of interest on the moneys paid by the trustees of every trustee savings bank into the special account referred to in section 31 (3) of the Finance Act, 1940 .

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

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

11.—(1) This Act may be cited as the Finance (No. 2) Act, 1968 .

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

(3) Sections 6 and 7 of this Act shall be construed together with Part VI of the Finance Act, 1963 , the Finance (No. 2) Act, 1966 , and the enactments amending or extending that Part and the last mentioned Act.

(4) Section 8 of this Act shall, so far as relating to income tax, including sur-tax, be construed together with the Income Tax Acts, and, so far as relating to corporation profits tax, be construed together with Part V of the Finance Act, 1920, and the enactments amending or extending that Part.

Section 3.

FIRST SCHEDULE

SPIRITS (RATES OF ORDINARY CUSTOMS DUTY).

PART I

PART II

Section 4.

SECOND SCHEDULE

DUTIES ON TOBACCO.

PART I

Customs.

PART II

Customs.

PART III

Excise