Finance Act, 1974

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

[6th August, 1974]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I INCOME TAX, SUR-TAX AND CORPORATION PROFITS TAX

CHAPTER I Method of Charging Income Tax for 1974-75 and Subsequent Years

Amendment of section 1 of Income Tax Act, 1967 .

1.—(1) Section 1 (1) of the Income Tax Act, 1967 , is hereby amended—

( a ) by the deletion of the definition of "assessable income",

( b ) by the substitution for the definitions. of "standard rate of tax", "tax" and "year of assessment" of the following definitions, respectively, that is to say:

"'standard rate', in relation to tax, means the rate of tax provided for by section 3 (1) of the Finance Act, 1974 ;",

"'tax' means income tax;", and

"'year of assessment' means a year for which income tax is imposed by any Act imposing duties at income tax;",

( c ) by the insertion, after the definition of "foreign life insurance fund", of the following definition:

"'higher rates', in relation to tax, means the rates of tax provided for by section 3 (2) (c) of the Finance Act, 1974 ;",

( d ) by the insertion, after the definition of "rating authority", of the following definition:

"'reduced rate', in relation to tax, means the rate of tax provided for by section 3 (2) (a) of the Finance Act, 1974 ;" and

( e ) by the insertion, after the definition of "taxable income" of the following definition:

"'total income' means total income from all sources as estimated in accordance with the provisions of this Act;".

Amendment of section 4 of Income Tax Act, 1967 .

2.— Section 4 of the Income Tax Act, 1967 , is hereby amended by the substitution of "at any rate or rates, tax at that rate or at those rates, as may be appropriate," for "at any rate, the tax at that rate" and the said section 4, as so amended, is set out in the Table to this section.

TABLE

4. Where any Act enacts that income tax shall be charged for any year at any rate or rates, tax at that rate or at those rates, as may be appropriate, shall, subject to the provisions of this Act, be charged for that year in respect of all property, profits, or gains respectively described or comprised in the Schedules contained in the sections of this Act enumerated below, that is to say—

Schedule C—Section 47;

Schedule D—Section 52; and

Schedule E—Section 109

and in accordance with the provisions of this Act respectively applicable to those Schedules.

Charge of income tax for 1974-75 and subsequent years.

3.—(1) Income tax shall be charged for the year 1974-75 and for each subsequent year of assessment and, subject to subsection (2), shall be so charged at the rate of 35 per cent.(which shall be known as the standard rate).

(2) Where a person, who is charged to income tax for the year 1974-75 or any subsequent year of assessment is an individual (other than an individual acting in a fiduciary or representative capacity), he shall, subject to section 5 (3), be charged to tax—

( a ) in respect of so much of his taxable income as does not exceed £1,550, at the rate of 26 per cent.(which shall be known as the reduced rate),

( b ) in respect of so much (if any) of his taxable income as exceeds £1,550 but does not exceed £4,350, at the standard rate, and

( c ) in respect of so much (if any) of his taxable income as exceeds £4,350, at the rates (which shall be known as the higher rates) specified in the following Table:

TABLE

Part of excess over £4,350	Higher rate
The first £2,000	50 per cent.
The next £2,000	65 per cent.
The remainder	80 per cent.

Charge to tax of income from which tax has been deducted.

4.—Where income (in this section referred to as the relevant income)—

( a ) from which tax is deductible by virtue of the provisions of Schedule C or Schedule D, or

( b ) from which tax is deductible by virtue of section 433 , 434 or 456 of the Income Tax Act, 1967 , or

( c ) which, by virtue of section 525 of the Income Tax Act, 1967 , is treated as if it were a net amount of an annual payment from the gross amount of which tax had been duly deducted under section 434 of the said Act,

is to be taken into account in computing the total income of an individual for any year of assessment, then, for the purpose of charging the said total income to tax at the rate or rates of tax charged for that year of assessment, the following provisions shall apply—

( d ) the relevant income shall be regarded as income chargeable to tax under Case IV of Schedule D and shall be charged accordingly;

( e ) in determining the amount of tax payable on the said total income credit shall be given for the tax deducted from the relevant income and the amount of sections 233 and 525 of the Income Tax Act, 1967 , be the amount of tax deducted from the relevant income:

Provided that where tax is deducted from a dividend at a rate as reduced by virtue of section 363 , 396 or 410 of the Income Tax Act, 1967 , or section 14 of the Finance Act, 1973 , such adjustment shall be made in the amount of the credit as may be necessary for the purpose of giving effect to the relief provided by those sections.

Provisions as to tax charged by way of deduction.

5.—(1) The provisions of the Income Tax Acts which provide that tax may be deducted from any payment at the rate or rate of tax in force during the period through which the payment was accruing due, or that there may be deducted from any dividend the tax appropriate thereto shall have effect as if they provided that tax may be deducted or shall be allowed at the standard rate for the year in which the amount payable becomes due:

Provided that this subsection shall not affect the deduction of tax at a rate less than the standard rate by virtue of section 363 , 396 or 410 of the Income Tax Act, 1967 , or section 14 of the Finance Act, 1973 .

(2) In estimating under the Income Tax Acts the total income of any person, any income which is chargeable with tax by way of deduction at the standard rate in force for any year shall be deemed to be income of that year, and any deductions which are allowable on account of sums payable under deduction of tax at the standard rate in force for any year out of the property or profits of that person shall be allowed as deductions in respect of that year, notwithstanding that the income or sums, as the case may be, accrued or will accrue in whole or in part before or after that year.

(3) Where a person is required to be assessed and charged with tax in respect of any property, profits or gains out of which he makes any payment in respect of any annual interest, annuity or other annual sum, or any royalty or other sum in respect of the user of a patent, he shall, in respect of so much of the property, profits or gains as is equal to the said payment and may be deducted in computing his total income, be charged at the standard rate only.

Personal relief.

6.—(1) Where a deduction falls to be made from the total income of an individual for the year 1974-75 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this section and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2) be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).

TABLE

Statutory provision	Amount to be deducted for 1973-74	Amount to be deducted from total income for 1974-75 and subsequent years
(1)	(2)	(3)
	£	£
Income Tax Act, 1967 :
section 138 (married man)	494	800
(single person)	299	500
(widowed person	324	550
(working wife)	104 or, if less, three-fourths of amount of wife's earned income	200 or, if less, amount of wife's earned income
sections 139 and 140 (housekeeper)	100	140
section 141 (child)—under 11 years	155	200
—11 years or over	170	200
section 142 (dependent relative)	60	80
Finance Act, 1969 :
section 3 (housekeeper taking care of incapacitated person)	100	140
Finance Act, 1971 :
section 11 (blind person)	100	140
(both spounses blind)	200	280

(2) Part I of the First Schedule shall have effect for the purpose of supplementing this section.

Amendment of section 142 of In Tax Act, 1967.

7.— Section 142 (1) of the Income Tax Act, 1967 , is hereby amended by the substitution of "£489" for "£407" (inserted by the Finance Act, 1973 ) in both places where it occurs, by the substitution of "£80" for "£60", in both places where it occurs, and by the substitution of "£409" for "£347" (inserted by the said Finance Act, 1973 ) and the said section 142 (1), as so amended, is set out in the Table to this section.

TABLE

142.—(1) If the claimant proves that he maintains at his own expense any person, being a relative of his or of his wife who is incapacitated by old age or infirmity from maintaining himself, or his or his wife's widowed mother, whether incapacitated or not, and being a person whose total income from all sources is less than £489 a year, he shall be entitled to a deduction of £80 in respect of each person whom he so maintains, and a like deduction shall be made in the case of a claimant who, by reason of old age or infirmity, is compelled to depend upon the services of a person (being a person whose total income from all sources is less than £489 a year and being a son or daughter of the claimant) resident with and maintained by him or her:

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 £409 a year, as if, instead of specifying a deduction of £80, it specified a deduction of that amount reduced by the amount of the excess.

Age allowance.

8.—(1) Where, for the year 1974-75 or any subsequent year of assessment, an individual is entitled to a deduction under section 138 of the Income Tax Act, 1967 , and he proves that at any time during that year of assessment he was, or in the case of a married man whose wife is living with him, either he or his wife was, of the age of sixty-five years or upwards, he shall, in addition to the allowance to which he is entitled under the said section 138 for that year of assessment, be entitled to a deduction—

( a ) in case he is a married man whose wife is living with him, of £50, and

( b ) in any other case, of £25.

(2) All such provisions of the Income Tax Acts as apply in relation to every deduction specified in sections 138 to 143 of the Income Tax Act, 1967 , shall apply in relation to a deduction under this section.

Amendment of Section 152 of Income Tax Act, 1967 .

9.— Section 152 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (1) of the following subsection:

"(1) The aggregate of the premiums or other sums in respect of which relief is given to any person under sections 143 and 151 shall not exceed one-sixth of the total income of the person or £1,000, whichever is the lesser:

Provided that in any case where the aggregate of the premiums paid on policies of insurance or on contracts for deferred annuities exceeds £1,000 and the insurance or contract was made before the 3rd day of April, 1974, relief in respect of the said premiums or other sums shall be given under the sections aforesaid without regard to the restriction of £1,000 provided for in this subsection.".

Cesser of charge to sur-tax.

10.—Sur-tax shall not be charged for the year 1974-75 or any subsequent year of assessment.

Consequential amendments.

11.—Part II of the First Schedule shall have effect for the purpose of supplementing this Chapter.

Commencement of Chapter I.

12.—The provisions of this Chapter shall have effect for the year 1974-75 and subsequent years of assessment and, accordingly, the amendments effected by those provisions and the First Schedule and the repeals effected by section 86 and mentioned in Part I of the Second Schedule shall not be taken to affect tax for an earlier year of assessment or the doing of anything in relation to tax for such a year.

CHAPTER II Taxation of Farming Profits, Provisions in Respect of Certain Farm Losses and Restriction of Personal Allowances

Definitions (Chapter II).

13.—(1) In this Chapter "farming", "farm land" and "occupation" have the same meaning as in section 18 (1) of the Finance Act, 1969 .

(2) Any reference in this Chapter to farm land occupied by an individual includes farm land deemed, by virtue of section 17, to be occupied by him.

(3) A reference in this Chapter to the rateable valuation of farm land occupied by an individual at a particular time is a reference to the aggregate of the rateable valuations of all farm land occupied by him and of an farm land deemed to be occupied by him at that time and a reference to the rateable valuation of farm land occupied by an individual for a year of assessment or part of a year of assessment is a reference to the total rateable valuation of all farm land occupied by him and of all farm land deemed to be occupied by him for that year of assessment, or part of a year of assessment calculated in accordance with the provisions of section 17 (5), (6) and (7):

Provided that, in calculating the rateable valuation of farm land for the purposes of this Chapter the rateable valuation of any building on the land shall be excluded.

Repeal of section 18 (2) (a) of Finance Act, 1969 .

14.—Section 18 (2) (a) of the Finance Act, 1969 , is hereby repealed.

Farming profits to be charged under Schedule D.

15.—(1) Subject to subsection (3), all farming in the State shall be treated as the carrying on of a trade or, as the case may be of part of a trade, and the profits or gains thereof shall be charged to tax under Case I of Schedule D accordingly.

(2) Notwithstanding anything to the contrary in Chapter III of Part IV of the Income Tax Act, 1967 , all farming carried on by any person whether solely or in partnership shall be treated as the carrying on of a single trade.

(3) Subsection (1) shall apply, as respects any year of assessment, in the case of an individual who shows that the rateable valuation of all farm land occupied by him did not, at any time during that year of assessment, amount to £100 or more.

Farming carried on by certain persons.

16.—(1) Section 15 (3) shall not have effect for any year of assessment in a case where farming is carried on in that year of assessment by an individual—

( a ) who at any time in that year of assessment is also carrying on either solely or in partnership another trade or profession,

( b ) whose spouse, in a case where the individual is a married person, is, at any time in that year of assessment, also carrying on either solely or in partnership another trade or profession,

( c ) who, at any time in that year of assessment, is a director of a company carrying on a trade or profession and who is ether the beneficial owner of, or able, ether directly or through the medium of other companies or by any other means, to control more than 25 per cent. of the ordinary share capital of the company, or

( d ) whose spouse, in a case where the individual is a married person, is, at any time in that year of assessment, a director of a company carrying on a trade or profession and who 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 25 per cent. of the ordinary share capital of the company:

Provided that paragraphs (b) and (d) shall not apply in a case where the wife of an individual is treated for tax purposes as not living with her husband.

(2) Subsection (1) shall apply in the case of a married person whose wife is carrying on farming and the provisions of that subsection shall have effect in such a case as if the references to the individual were a reference to his wife.

(3) This section shall not apply, as respects any year of assessment, in the case of an individual who shows that the rateable valuation of all farm land occupied by him did not, at any time during that year of assessment, exceed £50, or if it did so exceed £50, that any trade carried on by his spouse consisted solely of the provision of accommodation in buildings on the said farm land, the provision of such accommodation being ancillary to the farming of that farm land.

(4) For the purposes of paragraphs (c) and (d) of subsection (1), ordinary share capital which is owned or controlled in the manner referred to in that paragraph 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.

(5) In this section—

"company" means a company within the meaning of the Companies Act, 1963 ;

"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 standard rate of tax, but have no other right to share in the profits of the company.

Farm land occupied or deemed to be occupied by an individual.

17.—(1) For the purposes of this Chapter, farm land shall be deemed to be occupied by an individual where it is occupied by his wife or it is farm land of which he or his wife is the beneficial owner or of which they are the beneficial owners and which is occupied by any, other person or persons.

(2) Where farm land is occupied by an individual, or by his wife, in partnership with any other person or persons and neither he nor his wife is a beneficial owner of the farm land, the individual shall be deemed to occupy a proportionate part of that farm land and the rateable valuation of the proportionate part shall be so much of the total rateable valuation of the said farm land as bears to the said total rateable valuation the same proportion as his or her share, as may be appropriate, of the profits or losses on an apportionment thereof made in accordance with the terms of the partnership agreement as to the sharing of profits or losses bears to the total profits or losses of the partnership.

(3) Where farm land is beneficially owned by an individual, or by his wife jointly with any other person or persons but is not occupied by the individual or his wife either solely or jointly with any other person or persons the individual shall be deemed to occupy farm land the rateable valuation of which is an amount which is equal to such part of the total rateable valuation of the land of which he or his wife is a beneficial owner, as is proportionate to his or her share in the beneficial ownership of the said farm land.

(4) Where farm land is beneficially owned by an individual or by his wife jointly with any other person or persons and the said farm land is occupied by the individual or by his wife in partnership with any other person or persons, he shall be deemed to occupy farm land the rateable valuation of which is an amount which is equal to such fractional part of the total rateable valuation of the land of which he or his wife is a beneficial owner as is proportionate to his or her share in the beneficial ownership of he said farm land.

(5) The total rateable valuation of farm land occupied by an individual for a year of assessment shall be the sum of—

( a ) the rateable valuation of all farm land occupied by him or deemed to be occupied by him by virtue of subsection (1),

( b ) the rateable valuation of all proportionate parts of farm land deemed to be occupied by him by virtue of subsections (2), (3) and (4).

(6) Where farm land is occupied by an individual for part only of any year of assessment the rateable valuation of the farm land so occupied shall, for that year of assessment be deemed for the purposes of this section to be an amount which bears to the total rateable valuation thereof the same proportion that the length of the period during which the said farm land was so occupied in the year of assessment bears to twelve months.

(7) Where by virtue of subsection (1), (2), (3) or (4) farm land is deemed to be occupied by an individual and for any year of assessment the circumstances by reference to which he is deemed to occupy that farm land or any proportionate part thereof obtained for part only of that year of assessment, the rateable valuation of any farm land deemed to be occupied by him shall, for that year of assessment be deemed for the purposes of this section to be an amount which bears to the total rateable valuation of the said farm land the same proportion that the length of the period during which the said circumstances obtained in the year of assessment bears to twelve months.

Apportionment of valuation.

18.—(1) Where, in the case of property valued under the Valuation Acts as a unit, a part is and a part is not farm land, the rateable valuation of each part shall be arrived at for the purposes of this Chapter by apportionment of the rateable valuation of the property.

(2) Where farm land valued under the Valuation Acts as a unit is divided into two or more distinct occupations the rateable valuation of the part occupied by each occupier shall be arrived at for the purposes of this Chapter by apportionment of the rateable valuation of the farm land concerned.

(3) Any apportionment required by this section shall be made by the inspector according to the best of his knowledge and judgement.

(4) Section 67 (3A) (c) of the Income Tax Act, 1967 , (inserted by section 31 of the Finance Act, 1969 ) shall apply in respect of any apportionment made under this section as it applies in respect of any apportionment made under section 67 (3A) (b) of the said Act.

Limit on amount of tax to be charged in certain cases.

19.—(1) Where, for Any year of assessment an individual, other than an individual to whom section 16 applies, is chargeable to tax in respect of profits or gains from farming, the amount of tax so chargeable for that year of assessment shall not exceed—

( a ) where the rateable valuation of the farm land occupied by him for that year of assessment does not exceed £100, one-twentieth of the tax appropriate to the profits or gains from farming;

( b ) where the rateable valuation of the farm land occupied by him for that year of assessment exceed, £100, be amount arrived at by multiplying the tax appropriate to the profits or gains from farming by a fraction the denominator of which is twenty and the numerator of which is number equivalent to the amount by which the rateable valuation of the land so occupied exceeds £99:

Provided that, in a case where there is no income chargeable to tax other than profits or gains from farming, the tax chargeable shall not exceed by an amount greater than £40 the amount of tax which would be chargeable in accordance of with the provisions of this section if the rateable valuation of the farm land occupied by him were £1 less than the actual rateable valuation.

(2) For the purpose of this section, the tax appropriate to the profits or gains from farm shall, in relation to an individual, for so be so much of the tax that would, but provisions of this section, be payable in respect of the individual's total income as bears to that tax the same proportion as the amount of the profits or gains from farming included in the said total income bears to that total income.

(3) This section shall not apply in case where the rateable valuation of the farm land individual at any time during the year of assessment exceeds £119.

Optional basis of assessment.

20.—(1) Where, for the year of assessment 1974-75, a person is by virtue of section 15, chargeable tax in respect of profits or gains from farming and would, in accordance with the provisions of section 58 (1) of the Income Tax Act, 1967 , be charged to tax under Case 1 of Schedule D on the amount of the profits or gains of the year preceding that year of assessment, he may, by notice in writing given to the inspector within six months after the commencement at of the said year of assessment, elect to be charged to tax for that year of assessment on the full amount of the profits or gains of that year and not on the full amount of the profits or gains of the year preceding that year of assessment.

(2) For the purposes of this section, the profits or gains of the year 1974 may, at the election of the person chargeable to tax in respect of them, be taken as the profits or gains of the year 1974-75.

Notional basis of assessment for 1974-75.

21.—(1) Where, for the year of assessment 1974-75, an individual, other than an individual to whom section 16 applies, is, by virtue of section 15, chargeable to tax in respect of profits or gains from farming he may, by notice in writing given to the inspector within six months after the commencement of the said year of assessment elect to be charged to tax for that year of assessment in respect of those profits or gains in accordance with the provisions of this section said not by reference to the provisions of section 58 (1) of the Income Tax Act, 1967 , or of section 20.

(2) Where an individual elects as provided for in subsection (1), he shall be charged to tax under Case I of Schedule D) in respect of the profits or gains from farming on an amount equal to 40 times the rateable valuation of the farm land occupied by him for the said year of assessment less deductions in respect of—

( a ) rates payable for that year of assessment in respect of the farm land so occupied; and

( b ) (i) emoluments payable for that year of assessment to any person employed for the purpose of working the said farm land, in respect of such work, or

(ii) payments made to any other person for that year of assessment in respect of work of the kind referred to in subparagraph (i):

Provided that for the purposes of subparagraph (i) emoluments payable to a person connected with the individual shall be taken into account only in so for as they are paid to that person in cash.

(3) Where profits or gains from farming farm land are charged to tax in accordance with the provisions of subsection (2)

( a ) the individual so charged shall be entitled to claim any deduction in respect of machinery or plant used for the purpose of farming the said farm land which he would be entitled to claim if he had been charged to on the full amount of those profits or gains, and

( b ) any balancing which would fall to be made under section 272 of the Income Tax, Act 1967, if the individual were charged to tax on the full amount of those profits or gains, may be made.

(4) In charging profits or gains in accordance with the provisions of this section, no deduction shall be allowed other than those specified in subsections (2) and (3)

(5) Where for the said year of assessment art individual is chargeable to tax under Case V of Schedule D in respect of the profits or gains from any rent or any receipts in respect of any easement in relation; to any part of the farm land occupied by him, subsection (2) shall apply for the year of assessment to the farm land so occupied but excluding that part from which the said profits or gains chargeable under Case V of Schedule D arise:

Provided that this subsection shall not apply where the said rent or the said receipts are, having regard to values prevailing at the time, less than the amount which could have been obtained on the basis that the negotiations for the lease or the easement had been at arm's length.

(6) A person shall for the purposes of this section, be regarded as connected with an individual if that person would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 .

Farming: allowances for capital expenditure on construction of buildings and other works.

22.—(1) This section applies to any person carrying on farming, the profits or gains of which are chargeable to tax in accordance with the provisions of section 15 (1).

(2) Where a person to whom this section applies incurs, for the purpose of farming farm land occupied by him, any capital expenditure on the construction of farmhouses, farm buildings, cottages, fences or other works, there shall be made in charging the profits or gains from farming the said farm land an annual allowance (in this section referred to as a farm buildings allowance) equal to one-tenth of the said expenditure for the first relevant year of assessment and for each subsequent year of assessment until the allowances made under this section in respect of the expenditure equal the amount of the expenditure:

Provided that this subsection shall not apply to any expenditure incurred before the 6th day of April, 1974.

(3) Any capital expenditure as aforesaid incurred on or after the 6th day of April, 1974, by a person about to carry on farming but before commencing farming shall, for the purposes of this section, be treated as if it had been incurred on the first day on which he commences farming.

(4) Where capital expenditure as aforesaid is incurred on a farmhouse, one-third only of that expenditure shall be taken into account, or, if the accommodation and amenities of the farmhouse are out of due relation to the nature and extent of the firm, such proportion thereof not greater than one-third as may be just.

(5) For the purposes of this section, the first relevant year of assessment, in relation to expenditure incurred by any person, is the year in his basis period (within the meaning of section 297 of the Income Tax Act, 1967 ) for which he incurs the expenditure.

(6) Any claim by a person for an allowance falling to be made to him under the provisions of this section shall be included in the annual statement required to be delivered under the Income Tax Acts of the profits or gains from farming, and the allowance shall be made as a deduction in charging those profits or gains, and section 241 (3) of the Income Tax Act, 1967 , shall apply in relation to the allowance as it applies in relation to deductions allowable in respect of wear and tear of machinery or plant.

(7) Any claim for an allowance under the provisions of this section shall be made to and determined by the inspector, but any person aggrieved by any decision of the inspector on any such claim may, on giving notice in writing to the inspector within twenty-one days after the notification to him of the decision, appeal to the Appeal Commissioners.

(8) Appeal Commissioners shall hear and determine an appeal to them made under subsection (7) as if it were an appeal against an assessment to tax and the provisions of the Income Tax Acts relating to the rehearing of all appeal and statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications..

(9) Where a person who is entitled to an allowance under subsection (2) in respect of capital expenditure incurred for the purpose of farming farm land transfers his interest in that farm land or any part of that farm land to another person, that other person shall, to the exclusion of the first-mentioned person be entitled to the allowances under section for the years of assessment following the year in which the transfer of interest took place:

Provided that where the transfer of interest took place in relation to part only of the farm land, this subsection shall apply to so much of the allowance as is properly referable to that part of the land as if it were a separate allowance.

(10) Where expenditure is incurred partly for the purposes of farming and partly for the purposes, subsection (2) shall apply to so much only of that expenditure as on a just apportionment ought fairly to be treated as incurred for the purposes of farming.

(11) No allowance shall be made by virtue of this section in respect of any expenditure if for the same or any previous or subsequent year of assessment an allowance is or has been made in respect of it under Chapter II of Part XV or Chapter I of Part XVI of the Income Tax Act, 1967 .

(12) Expenditure shall not be regarded for any of the purposes of this section as having been incurred by any person in so far as it has been met directly or indirectly by the State, by any board established by statute, or by any public or local authority.

Application of section 20 of Finance Act, 1969 .

23.—The repeal by virtue of section 14, of section 18 (2) (a) of the finance Act, 1969 , shall not prevent section 20 of the said Act from applying to a dividend paid on or after the 6th day of April, 1974, in a case where the dividend is paid out of profits exempted from tax by virtue of the said section 18 (2) (a), or is paid in part out of such profits and in part out of other profits.

Restriction in respect of certain losses.

24.—No relief shall be given under section 309 of the Income Tax Act 1967 , in respect of a loss sustained in any year of assessment prior to the year 1974-75 in the carrying on of farming, by deducting such loss from or setting it against the amount of the profits or gains from farming assessed for the year 1974-75 or any subsequent year of assessment.

Wear and tear allowance deemed to have been made in certain cases.

25.—(1) In determining whether any, and if so what, wear and tear allowance, balancing allowance or balancing charge in respect of machinery or plant falls to be made to or on any person for any year of assessment in charging the profits or gains from farming, there shall be deemed to have been made to that person, for every previous year of assessment in which the machinery or plant belonged to him and which is a year of assessment to be taken into account for the purpose of this section, such wear and tear allowance or greater wear and tear allowance, if any, in respect of the machinery or plant as would have fallen to be made to him if, in relation to every such previous year—

( a ) the profits or gain from farming had been chargeable to tax under Case I of Schedule D,

( b ) farming had been carried on by him ever since the date on which he acquired the machinery or plant,

( c ) the machinery or plant had been used by him solely for the purposes of farming ever since that date, and

( d ) a proper claim had been duly made by him for wear and tear allowance in respect of the machinery or plant for every relevant year of assessment.

(2) There shall be taken into account for the purposes of this section every previous year of assessment in which the machinery or plant concerned belonged to the person and—

( a ) during which the machinery or plant was not used by the person for the purposes of farming,

( b ) during which farming was not carried on by him, or

( c ) during which farming was carried on by him in such circumstances that the full amount of the profits or gains thereof was not liable to be charged to tax under Case I of Schedule D.

(3) Nothing in this section shall affect the provisions of section 272 (4) of the Income Tax Act, 1967 .

(4) In this section—

"balancing allowance" and "balancing charge" have the same meanings as in Chapter II of Part XVI of the Income Tax Act, 1967 ;

"wear and tear allowance" means a deduction allowed under section 241 of the Income Tax Act, 1967 .

Amendment of section 307 of Income Tax Act, 1967 .

26.— Section 307 of the Income Tax Act, 1967 , is hereby amended—

( a ) by the substitution in subsection (1) of "trade other than farming, or in any" for "trade,",

( b ) by the substitution in subsection (1) of "or in farming in a case in which this section applies" for "or in the occupation of lands for the purposes of husbandry only", and

( c ) by the insertion after subsection (1) of the following subsection:

"(1A) This section applies in any case where farming is carried on other than in the case of an individual to whom section 15 (3) of the finance Act, 1974 , applies or would apply if the individual so claimed",

and the said subsection (1) of section 307, as so amended, is set out in the Table to this section.

TABLE

(1) Subject to the provisions of this section, where in any year of assessment any person has sustained a loss in any trade other than farming, or in any profession or employment, carried on by him either solely or in partnership, or in farming in a case in which this section applies or in the occupation of woodlands managed on a commercial basis and with a view to the realisation of profits, 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.

Restriction of relief for losses in farming or market gardening.

27.—(1) In this section—

"basis year", in relation to any capital allowance, shall be construed in accordance with section 317 (2) of the Income Tax Act, 1967 ;

"capital allowance" has the same meaning as in section 317 of the Income Tax Act, 1967 ;

"prior three years" in relation to a loss incurred in a year of assessment, means the last three years of assessment before that year;

"prior period of loss" means the prior three years, or, if losses were incurred in successive years of assessment amounting in all to a period longer than three years (and ending when the prior three years end), that longer period;

"market gardening" has the same meaning as in section 54 of the Income Tax Act, 1967 .

(2) ( a ) Any loss (including any amount in respect of allowances which, by virtue of section 318 of the Income Tax Act, 1967 , is to be treated as a loss) incurred in a trade of farming or market gardening shall not be available for relief under section 307 or 308 of that Act unless it is shown that, for the year of assessment in which the loss is claimed to have been incurred, the trade was being carried on a commercial basis and with a view to the realisation of profits in the trade.

( b ) Without prejudice to paragraph (a), any loss (including any amount in respect of allowances which by virtue of section 318 of the Income Tax Act, 1967 , is to be treated as a loss) incurred in any year of assessment in a trade of farming or market gardening shall not be available for relief under section 307 or 308 of the Income Tax Act, 1967 , if in each of the prior three years a loss was incurred in carrying on that trade.

( c ) For the purposes of this section, the, fact that a trade of farming or market gardening was being carried on at any time so as to afford a reasonable expectation of profit shall be conclusive evidence that it was then being carried on with a view to the realisation of profits.

( d ) This subsection shall not restrict relief for any loss or any capital allowance if it is shown by the claimant that the whole of his farming or market gardening activities in the year next following the prior three years are of such a nature, and carried on in such a way, as would have justified a reasonable expectation of the realisation of profits in the future if they had been undertaken by a competent farmer or market gardener but that if that farmer or market gardener had undertaken those activities at the beginning of the prior period of loss, he could not reasonably have expected the activities to become profitable until after the end of the year next following the prior period of loss.

( e ) This subsection shall not restrict relief where the carrying on of the trade forms part of, and is ancillary to, a larger trading undertaking.

(3) In ascertaining for the purposes of this section whether a loss was incurred in any year the rules applicable to Case I of Schedule D shall be applied.

(4) Where a trade of farming or market gardening is or falls to be treated as being carried on for a part only of a year of assessment by reason of its being set up and commenced, or discontinued, or both, in that year, subsection (2) shall have effect in relation to that trade as regards that part of that year.

(5) Subsection (2) shall not restrict relief for any loss or capital allowance if the trade was set up and commenced within the prior three years, and for the purposes of this subsection, trade shall be treated as discontinued, and a new trade set up, in any event which under any of the provisions of the Income Tax Acts is to be treated as equivalent to the permanent discontinuance or setting up of a trade.

(6) Where at any time there has been a change in the persons engaged in carrying on a trade of farming or market gardening, this section shall, notwithstanding subsection (5), apply to any person who was engaged in carrying on the trade immediately before and immediately after the change to if the trade were the same before and after without any discontinuance, and as if a person and another person with whom he is connected were the same person. In this subsection any question as to whether persons are connected shall be determined in accordance with the provisions of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 .

(7) Any loss to which this section applies shall not be taken into account in computing profits or losses for the purposes of section 53 of the Finance Act, 1920.

Farming profits: restriction of personal allowances.

28.—(1) Where, for any year of assessment, farm land is occupied by an individual in respect of whom, by virtue of section 15 (3), subsection (1) of that section does not apply and—

( a ) the rateable valuation of the farm land occupied by him exceeds £20, and

( b ) he is chargeable to tax for that year of assessment in respect of income other than income from farming (hereinafter referred to as other income).

this section shall apply.

(2) In any case in which this section applies for any year of assessment, the aggregate amount of the deductions to be made from the total income of the individual concerned for that year of assessment in respect of personal reliefs claimed by him shall be reduced by whichever of the following amounts is the lowest:

( a ) an amount equal to one-half of the aggregate amount of the said deductions,

( b ) the amount arrived at by multiplying by eighty the amount by which the rateable valuation exceeds £20, or

( c ) the total amount of he profits or gains for that year of assessment from farming farm land, computed in the same way as they would be computed if they were profits or gains chargeable to tax under Case I of Schedule D.

(3) Where the individual concerned shows that the actual profits or gains from farming are of such an amount that the tax payable by him for that year of assessment is greater than the tax appropriate to the other income, the tax so payable shall be reduced to the amount of tax appropriate to the other income.

(4) For the purposes of this section, the tax appropriate to the other income shall be so much of the tax as would be payable in respect of the individual's total income, if the actual profits or gains from farming were chargeable to tax in accordance with the provisions of section 15 (1), as bears in that tax the same proportion as the other income bears to such total income.

(5) ( a ) Where, by virtue of an application under section 197 of the Income Tax Act, 1967 , tax is to be assessable and chargeable on the incomes of a husband and wife as if they were not married—

(i) the aggregate amount of the personal reliefs, the benefit flowing from which is to be allocated to the husband and wife, shall not exceed the total amount of the deductions in respect of those reliefs which are to be allowed in accordance with the provisions of this section; and

(ii) in the allocation of the said benefit between the husband and the wife in accordance with the provisions of section 193 of the said Income Tax Act, 1967 , account shall be taken of any reduction in the total amount of the said deductions by virtue of the provisions of this section and the amount of benefit flowing to the husband or the wife in respect of each particular relief as specified in the said section 193 shall be reduced in the proportion which the total amount of the deductions in respect of personal reliefs allowable by virtue of this section bears to the total amount of the said allowances which, but for the provisions of this section, would be allowable.

( b ) Where in accordance with the provisions of subsection (3) of the said section 193, the amount of relief allocated to the husband or the wife exceeds the tax chargeable on his or her income, as the case may be, any balance calculated for the purpose of that subsection shall be reduced by the amount of tax which would be chargeable on the income of the husband or the wife, as the case may be, if any profits or gains from farming were chargeable to tax in accordance with the provisions of this Chapter.

(6) In this section—

"personal reliefs" has the same meaning as in section 193 of the Income Tax Act, 1967 .

CHAPTER III Restriction of Relief in Respect of Interest

Restriction on repayment of tax on interest in certain cases.

29.—The following section is hereby substituted for section 496 of the Income Tax Act, 1967 —

"496.—(1) Subject to the provisions of this section—

( a ) where interest payable in the State on an advance from a bank carrying on a bona fide banking business in the State is paid to the bank without deduction of tax out of profits or gains brought into charge to tax, the person by whom the interest is paid shall be entitled, on proof of the facts, to repayment of tax on the amount of the interest,

( b ) a like repayment shall on the like proof be made in the case of interest payable in the State on an advance from a person who in the opinion of the Revenue Commissioners is bona fide carrying on business as a member of a stock exchange in the State or from any person who in the opinion of the said Commissioners is bona fide carrying on the business of a discount house in the State,

( c ) a like repayment shall on the like proof be made in the case of yearly interest (including interest to which section 30 (1) or 50 (2) of the Finance Act, 1974 applies) charged with tax under Schedule D.

(2) In relation to any interest paid in respect of any period be ginning on or after the 10th day of January, 1974, notwithstanding the provisions of subsection (1), no repayment of tax shall be made under this section—

( a ) for the year of assessment 1973-74, on the excess of the interest over £500 or

( b ) for the year of assessment 1974-75, or for any subsequent year of assessment, on the excess of the interest over £2,000:

Provided that paragraph (a) shall not apply to interest wholly and exclusively laid out or expended for the purposes of a trade or profession or other business whose income consists wholly or mainly of profits or gains chargeable under Case V of Schedule D.

(3) Where, in relation to interest paid in respect of any period beginning on or after the 10th day of January, 1974, relief is claimed by a person by virtue of more than one of the following provisions, that is to say, subsection (2), section 76 (1) (c) or paragraph 1 (2) of Part III of Schedule 6, relief shall not be given to such person in respect of the part (if any) of the aggregate amount of interest paid by him that exceeds the appropriate amount specified in subsection (2).

(4) The provisions of subsection (2) shall not apply to interest on money borrowed to pay death duties.

(5) No repayment of tax shall be made under this section unless the Revenue Commissioners are satisfied that the relevant interest has been or will be brought into account in the statement delivered or to be delivered for the purposes of tax by the person making the advance on which the interest was paid.".

Provision in relation to tax deducted from certain payments of interest made before passing of this Act.

30.—(1) This section applies to payments of interest (other than interest on a loan secured by an instalment promissory note of the kind referred to in section 50 (2) or interest to which section 31 (2) applies) in respect of any period beginning on or after the 10th day of January, 1974, made before the passing of this Act from which tax was deducted under section 433 or 434 of the Income Tax Act, 1967 .

(2) Payments of interest to which this section applies shall be deemed to be payments not made out of profits or gains brought into charge, whether or not they are such payments, and subsections (2) to (5) of section 434 of the Income Tax Act, 1967 , shall apply to the said payments as they apply to payments specified in subsection (1) of that section.

Interest payments by companies and to non-residents.

31.—(1) In this section "company" means any body corporate.

(2) Where any yearly interest charged with tax under Schedule D is paid—

( a ) by a company otherwise than when paid in a fiduciary or representative capacity to a person whose usual place of abode is in the State, or

( b ) by any person to another person whose usual place of abode is outside the State,

in respect of any period beginning on or after the 10th day of January, 1974, the person by or through whom the payment is made shall, on making the payment deduct out of it a sum representing the amount of the tax thereon at the standard rate in force at the time of the payment and subsections (2) to (5) of section 434 of the Income Tax Act, 1967 , shall apply to such payments as they apply to payments specified in subsection (1) of that section.

(3) Subject, as respects paragraph (a), to section 50 (4), subsection (2) shall not apply to—

( a ) interest on a loan secured by an instalment promissory note of the kind referred to in section 50 (2), or

( b ) interest paid in the State on an advance from a bank carrying on a bona fide banking business in the State, or

( c ) interest paid by such a bank in the ordinary course of such business, or

( d ) interest paid by a company which has been authorised by the Revenue Commissioners to pay interest without deduction of income tax, or

( e ) interest on any securities in respect of which the Minister for Finance has given a direction under section 466 of the Income Tax Act, 1967 , or

( f ) interest paid without deduction of tax by virtue of section 221 of the Income Tax Act, 1967 .

Relief on certain bridging loans.

32.—(1) Where a person—

( a ) disposes of his only or main residence and acquires another residence for use as his only or main residence,

( b ) obtains a loan the proceeds of which are used to defray, in whole or in part, the cost of the acquisition or the disposal or both, and

( c ) pays interest on the loan (and on any subsequent loan the proceeds of which are used to repay, in whole or in part, the first-mentioned loan or any such subsequent loan or to pay interest on any such loan) in respect of the period of twelve months from the date of the making of the first-mentioned loan, he shall be entitled, on proof of the facts, to repayment of tax under section 496 of the Income Tax Act, 1967 , as amended by section 29, on the amount of that interest as if no other interest had been paid by him in respect of the aforementioned period of twelve months.

(2) Subsection (1) shall not apply to a loan the proceeds of which are applied for some other purpose before being applied for the purpose specified in that subsection.

Relief to companies on loans applied in acquiring interest in other companies.

33.—(1) ( a ) In this section and sections 34 and 35—

"ordinary share capital" has the meaning assigned to it by section 323 of the Income Tax Act, 1967 ;

"control" has the meaning assigned to it by section 16 of the finance (Miscellaneous Provisions) Act, 1968 ;

"material interest" in relation to a company, means the beneficial ownership of or the ability to control, directly or through the medium of a connected company or connected companies or by any other indirect means, more than 5 per cent. of the ordinary share capital of the company.

( b ) For the purposes of this section and sections 34 and 35 a company shall be regarded as connected with another company if it would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 , and if it is such a company as is referred to in subsection (2) (a).

(2) This section applies to a loan to a company (referred to subsequently in this section and in section 35 (1) as the investing company) to defray money applied—

( a ) in acquiring any peal of the ordinary share capital of—

(i) a company which exists wholly or mainly for the purpose of carrying on a trade or trades or a company whose income consists wholly or mainly of profits or gains chargeable under Case V of Schedule D or

(ii) a company whose business consists wholly or mainly of the holding of stocks; shares or securities of such a company as is referred to in subparagraph (i), or

( b ) in lending to such a company as is referred to in paragraph (b) money which is used wholly and exclusively far the purposes of the trade or business of the company or at a connected company, or

( c ) in paying off another loan where relief could have been obtained under this section for interest on that other loan if it had not been paid off (on the assumption, if the loan was free of interest, that it carried interest).

(3) Relief shall be given in respect of any payment of the interest by the investing company on the loan—

( a ) if when the interest is paid the investing company has a material interest in the company or in a connected company, and

( b ) if, during the period taken as a whole from the application of the proceeds of the loan until the interest was paid at least one director of the investing company was also a director of the company or of a connected company, and

( c ) if the investing company shows that in the period aforesaid it has not recovered any capital from the company or from a connected company apart from any amount taken into account under section 35.

Relief to individual on loans applied in acquiring interest in companies.

34.—(1) This section applies to a loan to an individual to defray money applied—

( a ) in acquiring any part of the ordinary share capital of—

(ii) a company whose business consists wholly or mainly of the holding of stocks, shares or securities of such a company an is referred to in subparagraph (i), or

( b ) in lending to such a company as is referred to in paragraph (a) money which is used wholly and exclusively for the purpose of the trade or business of the company or of a connected company, or

(2) Relief shall be given in respect of any payment of the interest by the individual on the loan—

( a ) if when the interest is paid he has a material interest in the company or in a connected company,

( b ) if, during the period taken as a whole from the application of the proceeds of the loan until the interest was paid, he has worked for the greater part of his time in the actual management or conduct of the business of the company or of a connected company, and

( c ) if he shows that in the period aforesaid he has not recovered any capital from the company or from a connected company apart from any amount taken into account under section 35.

Rules relating to recovery of capital.

35.—(1) If at any time after the application of the proceeds of a loan to which section 33 or 34 applies the investing company or the individual (referred to subsequently in this section as the borrower) has recovered any amount of capital from the company concerned or from a connected company without using that amount in repayment of the loan, the borrower shall be treated for the purposes of this section as if he had at that time repaid that amount out of the loan, and so that out of the interest otherwise eligible for relief and payable for any period after that time there shall be deducted an amount equal to interest on the amount of capital so recovered. If part only of such a loan fulfils the conditions in section 33 or 34 so as to afford relief for interest on that part, the deduction to be made under this subsection shall be made wholly out of interest on that part.

(2) The borrower shall be treated as having recovered an amount of capital from the company or from a connected company if—

( a ) the borrower receives consideration of that amount or value for the sale of any part of the ordinary share capital of the company or of a connected company or any consideration of that amount or value by way of repayment of any part of that ordinary share capital, or

( b ) the company or a connected company repays that amount of a loan or advance from him, or

( c ) the borrower receives consideration of that amount or value for assigning any debt due to him from the company or from a connected company.

In the case of a sale or assignment otherwise than by way of a bargain made at arm's length, the sale or assignment shall be deemed to be for consideration of an amount equal to the market value of what is disposed of.

(3) Sections 33 (3) and 34 (2) and subsections (1) and (2) shall apply to a loan within section 33 (2) (c) or 34 (1) (c) as if it, and any loan it replaces, were one loan, and—

( a ) references to the application of the proceeds of the loan were references to the application of the proceeds of the original loan, and

( b ) any restriction under subsection (1) which applied to any loan which has been replaced applied also to the loan which replaces it.

(4) Sections 33 (2) and 34 (1) shall not apply to a loan unless it is mode in connection with the application of the money and either on the occasion of its application, or within what is in the circumstances a reasonable time from the application of the money, and those subsection shall not apply to a loan the proceeds of which are applied for some other purpose before being applied as described in those subsections.

(5) Interest eligible for relief under sections 33 and 34 shall be deducted from or set off against the income of the borrower for the year of assessment in which the interest is paid, and tax shall be discharged or repaid accordingly and such interest shall not be eligible for relief under any provision of the Income Tax Acts apart from those sections.

Relief to individuals on loans applied in acquiring interest in a partnership.

36.—(1) This section applies to a loan to an individual to defray money applied—

( a ) in purchasing a share in a partnership, or

( b ) in contributing money to a partnership by way of capital or a premium, or in advancing money to the partnership, where the money contributed or advanced is used wholly and exclusively for the purposes of the trade or profession carried on by the partnership, or

(2) Relief shall be given in respect of any payment of interest by the individual on the loan—

( a ) if throughout the period from the application of the proceeds of the loan until the interest was paid he has personally acted in the conduct of the trade or profession carried on by the partnership as a partner therein, and

( b ) if he shows that in that period he has not recovered any capital from the partnership, apart from any amount taken into account under the next following subsection.

(3) If at any time after the application of the proceeds of the loan the individual has recovered any amount of capital from the partnership without using that amount in repayment of the loan, he shall be treated for the purposes of this section as if he had at that time repaid that amount out of the loan, and so that out of the interest otherwise eligible for relief and payable for any period after that time there shall be deducted an amount equal to interest on the amount of capital so recovered. If part only of such a loan fulfils the conditions in this section, so as to afford relief for interest on that part, the deduction to be made under this subsection shall be made wholly out of interest on that part.

(4) The individual shall be treated as having recovered an amount of capital from the partnership if—

( a ) he receives a consideration of that amount or value for the sale of any part of his interest in the partnership, or

( b ) the partnership returns any amount of capital to him or repays any amount advanced by him, or

( c ) he receives a consideration of that amount or value for assigning any debt due to him from the partnership.

(5) Subsections (2), (3) and (4) shall apply to a loan within subsection (1) (c) as if it, and any loan it replaces, were one loan, and—

( a ) references to the application of the proceeds of the loan were references to the application of the proceeds of the original loan, and

( b ) any restriction under subsection (3) which applied to any loan which has been replaced applied also as respects the loan which replaces it.

(6) Subsection (1) shall not apply to a loan unless it is made in connection with the application of the money, and either on the occasion of its application, or within what is in the circumstances a reasonable time from the application of the money, and that subsection shall not apply to a loan the proceeds of which are applied for some other purpose before being applied as described in that subsection.

(7) Interest eligible for relief under this section shall be deducted from or set off against the income of the individual for the year of assessment in which the interest is paid, and tax shall be discharged or repaid accordingly, and such interest shall not be eligible for relief under any provision of the Income Tax Acts apart from this section.

Interest on borrowings to replace capital withdrawn in certain circumstances from a business.

37.—If at any line after the 10th day of January, 1974, a person borrows money to replace, in whole or in part, capital in any form formerly employed in any trade, profession or other business carried on by him tax in respect of the profits or gains of which is charged under Schedule D, and which capital was, after the 10th day of January, 1974, but within the five years preceding the date of replacement, withdrawn from such use for use otherwise than in connection with a trade, profession or other business carried on by him, interest on such borrowed money shall not be regarded as interest wholly and exclusively laid out or expended for the purpose of a trade, profession or other business.

Aggregation of interest paid by connected persons.

38.—(1) In relation to connected persons the references in section 496 (2) of the Income Tax Act, 1967 , and sections 44 and 52 to £500 and £2,000 shall in the case of each such person be taken to be references to the proportion of £500 or £2,000, as the case may be, which the interest paid by that person bears to the aggregate of the interest paid by all the connected persons.

(2) For the purposes of this section a person is connected with an individual if that person is the individual's husband or wife and a company shall be regarded as connected with an individual or with another company if it would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 .

Arrangements for payment of interest less tax or of fixed net amount.

39.—(1) It is hereby declared that any, provision made before or after the passing of this Act, whether orally or in writing, for the payment of interest "less tax" or using words to that effect, is to be construed, in relation to interest payable without deduction of tax, as if the words "less tax" or the equivalent words, were not included.

(2) In relation to interest on which the recipient is chargeable to tax under Schedule D, and which is payable without deduction of tax, any provision, made before or after the passing of this Act, whether orally or in writing and however worded, for the payment of interest at such a rate (referred to subsequently in this subsection as the "gross rate") as shall, after deduction of tax at the standard rate of tax for the time being in force, be equal to a stated rate, shall be construed as if it were a provision requiring the payment of interest at the gross rate.

Allowance of interest as a business expense.

40.—(1) In computing for the purposes of tax for the year 1974-75 or any subsequent year of assessment the profits or gains arising from a trade or profession in a basis period falling wholly or partly before the 10th day of January, 1974, there may, subject to section 61 of the Income Tax Act, 1967 , be deducted—

( a ) the gross amount of any annual interest paid under deduction of tax before the 10th day of January, 1974, in respect of a period ended before that date, and

( b ) the amount of any interest paid to, a bank or a person carrying on business as a member of a stock exchange or of a discount house relief for which was allowed under section 496 of the Income Tax Act, 1967 , for the year of assessment in which the interest was paid.

(2) In this section "basis period" in relation to any year of assessment means the period the profits or gains of which are taken into account in charging tax under Case I or Case II of Schedule D on the profits or gains of the trade or profession for that year of assessment.

(3) It is hereby declared that, subject to subsection (1), relief in respect of any payment of interest shall not be given under the said section 496 and in computing the profits or gains of a trade or profession.

Tax avoidance: transactions associated with loans or credit.

41.—(1) This section applies as respects any, transaction effected with reference to the lending of money or the giving of credit, or the varying of the terms on which money is lent or credit is given, or which is effected with a view to enabling or facilitating any such arrangement concerning the lending of money or the giving of melt.

This subsection has effect whether the transaction is effected between the lender or creditor and the borrower or debtor, or between either of them and a person connected with the other or between a person connected with one and a person connected with the, other.

(2) If the transaction provides for the payment of any annuity or other annual payment, not being interest, being a payment chargeable to tax under Schedule D, the payment shall be treated for all the purposes of the Income Tax Acts and of the enactments relating to corporation profits tax as if it were a payment of annual interest.

(3) If the transaction is one by which the owner of any securities or other property carrying a right to income agrees to sell or transfer the property, and by the same or any collateral agreement—

( a ) the purchaser or transferee, or a person connected with him, agrees that at a later date he will sell or transfer the same or any other property to the first-mentioned person, or a person connected with him, or

( b ) the first-mentioned person, or a person connected with him, acquires an option, which he subsequently exercises, to buy or acquire the same or any, other property from the said purchaser or transferee or a person connected with him,

then, without prejudice to the liability of any other person, the first-mentioned person shall be chargeable to tax under Case IV of Schedule D on an amount equal to any income which arises from the first-mentioned property at any time before the repayment of the loan or the termination of the credit.

(4) If under the transaction a person assigns, surrenders or otherwise agrees to waive or forego income arising from any property without a sale or transfer of the property) then, without prejudice to the liability of any other person, he shall be chargeable to tax under Case IV of Schedule D on a sum equal to the amount of income assigned, surrendered, waived or foregone.

(5) If credit is given for the purchase price of any property, and the rights attaching to the property are such that, during the subsistence of the debt, the purchaser's rights to income from the property are suspended or restricted, he shall be treated for the purposes of subsection (4) as if he had surrendered a right to income of an amount equivalent to the income which he has in effect foregone by obtaining the credit.

(6) The amount of any income payable subject to deduction of tax at the standard rate shall be taken for the purposes of subsection (4) as the amount before deduction of that tax.

(7) References in this section to connected persons shall be construed in accordance with section 16 (2) of the Finance (Miscellaneous Provisions) Act, 1968 .

Amendment of section 61 of Income Tax Act, 1967 .

42.—(1) Section 61 (1) of the Income Tax Act, 1967 , is hereby amended by the deletion of "any annual interest, or" and by the insertion after "payment" of "(other than interest)" and the said section 61 (1) as so amended, is set out in the Table to this section.

(2) This section shall apply for the year 1974-75 and subsequent years of assessment to any payment of annual interest whenever made and for the year 1973-74 to any payment of annual interest in respect of any period beginning on or after the 10th day of January, 1974.

TABLE

(l) any annuity, or other annual payment (other than interest) payable out of the profits or gains;

Amendment of section 75 of Income Tax Act, 1967 .

43.— Section 75 of the Income Tax Act, 1967 , is hereby amended by the addition of the following subsections—

"(3) Interest on a debt which having been payable subject to deduction of tax ceases at any time to be so payable shall be deemed to arise from a separate source acquired by the creditor at that time and subsection (1) shall not apply to such interest.

(4) Interest on a debt which having been payable in full begins at am, time to be payable subject to deduction of tax shall be deemed to have arisen from a separate source which the creditor ceased to possess at that time and subsection (1) shall not apply to such interest.".

Amendment of section 76 of Income Tax Act, 1967 .

44.—In relation to annual interest in respect of any period beginning on or after the 10th day of January, 1974, section 76 (1) (c) of the Income Tax Act, 1967 , shall not apply—

( a ) for the year of assessment 1973-74, to the excess of the interest over £500, or

( b ) for the year of assessment 1974-75, or for any subsequent year of assessment, to the excess of the interest over £2,000.

Amendment of section 77 of Income Tax Act, 1967 .

45.— Section 77 (3) of the Income Tax Act, 1967 , is hereby amended by the substitution for "subsection (2)" of "subsection (2) or (4)" and the said section 77 (3), as so amended, is set out in the Table to this section.

TABLE

(3) If in any year of assessment any person charged or chargeable in respect of income or profits under Case III of Schedule D ceases to possess the whole of such single source of income or profits as is mentioned in section 75 (1) or any of the sources the income of which is directed to be separately computed under subsection (2) or (4) of that section, section 58 (5) shall, subject to the necessary modifications, apply in any such case as if the cesser of the possession of such single source or separate sources, as the case may be, were the discontinuance of a trade.

Application of section 81 of Income Tax Act, 1967 , to certain income arising outside State.

46.—Notwithstanding the foregoing provisions of this Chapter, income arising outside the State which if it had arisen in the State would be chargeable under Case V of Schedule D shall be deemed to be income to which the provisions of section 81 of the Income Tax Act, 1967 , so far as they relate to deductions to be made by reference to subsection (5) (e) of that section, apply.

Amendment of section 219 of Income Tax Act, 1967 .

47.— Section 219 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (1) of the following subsection:

"(1) It is hereby declared that in computing, for the purposes of Case 1 of Schedule D, the profits or gains of a society there are in 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 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;

( b ) are share or loan interest paid by the society being interest wholly and exclusively laid out or expended for the purposes of the trade.".

Paragraph (b) shall apply for the year 1974-75 and subsequent years of assessment to any payment of annual interest whenever made and for the year 1973-74 by any payment of annual interest in respect of any period beginning an or after the 10th day of January, 1974.

Amendment of section 221 of Income Tax Act, 1967 .

48.— Section 221 (2) of the Income Tax Act, 1967 , is hereby amended—

( a ) by the insertion after the first subparagraph of paragraph ( c ) of the following proviso:

"Provided that in a case to which section 220 does not apply no deduction shall be made in relation to interest in respect of any period beginning on or after the 10th day of January, 1974—

( a ) for the year of assessment 1973-74, on the excess of the interest over £500, or

( b ) for the year of assessment 1974-75, or for any subsequent year of assessment, on the excess of the interest over £2,000."

( b ) by the insertion after paragraph (e) of the following proviso:

"Provided that in relation to interest in respect of any period beginning on or after the 10th day of January, 1974, the aggregate of the appropriate proportions of that interest shall not exceed—

( a ) for the year of assessment 1973-74, the sum of £500, or

( b ) for the year of assessment 1974-75, or for any subsequent year of assessment, the sum of £2,000.", and

( c ) by the addition to paragraphs (g) of "or as a deduction authorised under section 81 (5) (e).",

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

TABLE

(2) ( 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) is made) without deduction of tax in accordance with subsection (1), it may claim, in a case in which section 220 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.

Provided that in a case to which section 220 does not apply no deduction shall be made in relation, to interest in respect of any period beginning on or after the 10th day of January, 1974—

( a ) for the year of assessment 1973-74, on the excess of the interest over £500, or

( b ) for the year of assessment 1974-75, or for any subsequent year of assessment, on the excess of the interest over £2,000.

Section 307 (5) (6) shall apply to a claim under this paragraph as those subsections apply to a claim under section 307, except that it shall not be necessary to use a prescribed form.

(2) ( 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 220, have been the amount of the society's total income for that year.

Provided that in relation to interest in respect of any period beginning on our after the 10th day of January, 1974, the aggregate of the appropriate proportions of that interest shall not exceed—

( a ) for the year of assessment 1973-74, the sum of £500, or

( b ) for the year of assessment 1974-75, or for any subsequent year of assessment, the sum of £2,000.

(2) ( 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 or as a deduction authorised under section 81 (5) ( e ).

Amendment of sections 231 , 232 and 233 of Income Tax Act, 1967 .

49.—(1) Sections 231 (4) (a), 232 (2) and 233 (2) (a) of the Income Tax Act, 1967 , are hereby amended by the substitution of "an annual payment" for "a payment of interest" in each place where it occurs and the said sections 231 (4) (a), 232 (2) and 233 (2) (a), as so amended, are set out in the Table to this section.

(2) This section shall be deemed to have come into force and stall take effect as on and from the 6th day of April, 1973.

TABLE

(4) ( a ) Section 434 shall apply to any payment made in respect, or on account, of the excess as if such payment were an annual payment charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recoverable from the person by or through whom the payment is made.

(2) Where, under a retirement benefits scheme in relation to which this section applies, any benefit is provided, otherwise than by way of non-commutable pension or annuity, on the death during his service of a director or employee and the total value of all benefits so provided under that scheme and under all other schemes exempt from the operation of section 227; subsisting in connection with the body corporate, exceeds the amount which would have satisfied the condition specified in section 229 (1) (i), section 434 shall apply to any payment made in respect or on account, of such excess as if the payment were an annual payment charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recoverable, from the person by or through whom the payment is made.

(2) Where any contributions made by a director or employee under an approved scheme within the meaning of subsection (1) are repaid to him during his lifetime—

( a ) section 434 shall apply to the amount of the contributions repaid as if it were an annual payment charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recovered from the person by or through whom the repayment is made,

Restriction of sections 433 and 434 of Income Tax Act, 1967 .

50.—(1) Subject to the provisions of subsection (2) and sections 30 and 31, sections 433 and 434 of the Income Tax Act 1967 , so far as they relate to interest of money, shall not apply to any such interest in respect of any period beginning on or after the 10th day of January, 1974.

(2) Subsection (1) shall not apply to bound on any ban scoured by an instalment promissory note signed before the 6th day of April, 1974, under the terms of which the borrower promised to make periodic payments which include a sun representing interest after deduction of income tax therefrom at the rate for the time being in force.

(3) In subsection (2) "interest" means—

( a ) in the case of a loan the terms of which provide for the payment of interest "less tax" or use words to that effect, the interest which would be payable if the words "less tax" or the equivalent words were not included, and

( b ) in the case of a loan the terms of which provide for the payment of interest at such a rate (subsequently referred to as the gross rate) as, after deduction of tax at the rate for the time being in force, is equal to a stated rate, the rest at the gross rate.

(4) Payments of such interest as is referred to in subsection (2) in respect of any period beginning on or after the 10th day of January, 1974, shall be deemed to be payments not made out of profits or gains brought into charge, whether or not they, are such payments, and subsections (2) to (5) of section 434 of the Income Tax Act, 1967 , shall apply to the said payments as they apply to payments specified in subsection (1) of that section.

Amendment of section 535 of Income Tax Act, 1967 .

51.—(1) Section 535 (1) (b) or the Income Tax Act, 1967 , is hereby amended by the deletion of "annual interest" and by the insertion after "annual payment" of "(other than interest)" and the said section 535 (1) (b), as so amended, is set out in the Table to this section.

TABLE

(1) ( b ) no deduction shall be made an account of any annuity or other annual payment (other than interest) to be paid out of such profits or gains in regard that a proportionate part of the tax is allowed to be deducted on making any such payment.

Restriction of Schedule 6 to Income Tax Act, 1967 .

52.—In relation to annual interest in respect of any period beginning on or after the 10th day of January, 1974, paragraph 1 (2) of Part III of Schedule 6 to the Income Tax Act, 1967 , shall not apply—

( a ) for the year of assessment 1973-74, to the excess of the interest over £500, or

( b ) for the year of assessment 1974-75, or for any subsequent year of assessment, to the excess of the interest over £2,000.

Application to corporation profits tax.

53.—(1) The foregoing provision of this Chapter shall, with any necessary modifications, apply for the purposes of corporation profits tax.

(2) Section 53 (2) of the Finance Act, 1920, is hereby. amended by the addition to the proviso of the following paragraph:

"(l) subject to section 53 (1) of the Finance Act, 1974 , any deduction allowed in respect of interest paid in respect of any period beginning on or after the 10th day of January, 1974, not being interest wholly and exclusively laid out or expended for the purposes of a trade or profession, or other business the income from which consists wholly or mainly of profits or gains chargeable under Case V of Schedule D, shall not exceed an amount calculated at the rate of £2,000 per annum."

CHAPTER IV Anti-avoidance

Charge to tax in respect of certain dividends received by directors and employees.

54.—(1) In this section—

"director" has the same meaning as in section 119 of the Income Tax Act, 1967 ;

"emoluments" has the same meaning as in section 111 (4) of the Income Tax Act, 1967

"employee" means a person employed by any body of persons;

"tax-relived company" means a body corporate which has claimed and is entitled to relief from tax under Part XXV of the Income Tax Act, 1967 .

(2) A person or body corporate shall, for the purposes of this section be regarded as connected with a tax-relieved company if that person or body corporate would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 , and a person shall be regarded as connected with another person if that person would be so reputed for the purposes of the said section 16.

(3) Where, for any year of assessment, a person—

( a ) who is a director or employee of a tax-relieved company or of a body corporate connected with that company, or

( b ) who is employed by a person connected with that company,

receives no emoluments in respect of services rendered by him to or for the benefit of the said company or to or for the benefit of any person connected with that company or receives emoluments in respect of such services which, in the opinion of the Revenue Commissioners, are not adequate as consideration for the services so rendered, and receives a dividend in respect of shares held by him in the said company, so much of that dividend (in this section referred to as the relevant part of the dividend) as is, in the opinion of the Revenue Commissioners, in consideration of the services so rendered shall be deemed to be emoluments of that person and shall be chargeable to tax under Schedule E as emoluments paid to him on the date on which the said dividend was payable, and the amount of the emoluments to be so charged shall be the amount which, after deduction of tax at the rate appropriate to the dividend, is equal to the net amount payable of the relevant part of the dividend.

(4) Where tax has been deducted from a dividend referred to in subsection (3), so much of that tax as is appropriate to the relevant part of the dividend shall be allowed as a credit against any tax chargeable by virtue of the said subsection (3).

(5) In considering for the purpose of this section whether emoluments paid to any person by a company are or are not adequate as consideration for services rendered, the Revenue Commissioners shall have regard to—

( a ) the nature of the services rendered by that person,

( b ) the emoluments received by that person from the company for services so rendered at a time when he did not hold shares in the company or did not hold the shares in respect of which the dividend is paid which is the subject of their consideration by virtue of this section,

( c ) the amount of emoluments which it would be reasonable to expect to be paid for such services, and

( d ) any evidence tendered by or on behalf of the said person as to the adequacy of the emoluments in question.

(6) Where shares in respect of which a dividend is pall are held in a tax-relieved company by a person who is connected with another person (that other person being a person who if he held the shares and received the dividend would be a person to whom subsection (3) applies), then, for the purposes of the said subsection (3), the shares shall be regarded as being held by the second mentioned person and the dividend shall be regarded as having been received by him in respect of the shares on the date on which the dividend was payable.

(7) In considering for the purpose of this section whether a dividend or part of a dividend is in consideration of services rendered, the Revenue Commissioners shall have regard to—

( a ) all the classes of shares issued by the company concerned,

( b ) the class or classes of shares in the said company held by the person aforesaid, the number of shares so held, the nominal value of, and the amount subscribed by him in respect of, such shares,

( c ) the rate of dividend paid on the shares of each class,:

( d ) whether shares of the class held by the person aforesaid are held by any other person and, if so, the number of shares so held, and

( e ) any other matter which appears to them relevant for the purpose of forming an opinion under this subsection.

(8) An appeal shall lie to the Appeal Commissioners with respect to any opinion of the Revenue Commissioners under this section in like manner as an appeal would lie against an assessment to tax, and the provisions of the Income Tax Acts nick, to appeals shall apply and have effect accordingly.

Transactions in certificates of deposit an assignable deposits.

55.—(1) Where, after the 3rd day of April, 1974, a person acquires a right to which this section applies any gain arising to him from the disposal of that right or, except so far as it is a right to receive interest, from its exercise shall, if not falling to be taken into account as a trading receipt, be deemed to be annual profits or gains chargeable to tax under Case IV of Schedule D and shall be charged to tax accordingly.

(2) Where, on or before the 3rd day of April, 1974, a person acquired a right to which this section applies and disposes or disposed of or exercises ox exercised, the right after the said date, so much of any gain arising to him from that disposal or, except so far as it is a right to receive interest, from that exercise, as bears to the total amount of the gain the same proportion as the number of days from the 3rd day of April, 1974, to the date of the disposal or exercise bears to the total number of days from the date of the acquisition to the date of the disposal or exercise, shall, if not falling to be taken into account as a trading receipt, be deemed to be annual profits or gains chargeable to tax under Case IV of Schedule D and shall be charged to tax accordingly.

(3) Where a person sustains a loss in a transaction which, if profit had arisen from it, would be chargeable to tax by virtue of subsection (1) or (2), then, if he is chargeable to tax under Schedule C or D in respect of the interest payable on the amount of money the right to which has been disposed of, the amount off that interest shall be included in the amounts against which he may claim to set off the amount of his loss under section 310 of the Income Tax Act 1967 .

(4) For the purposes of this section, profits or gains shall not be treated as falling to be taken into account as a trading receipt by reason only that they are included in the computation required by section 214 of the Income Tax Act, 1967 .

(5) This section applies to any right—

( a ) to receive from any person an amount of money (with or without interest) which is stated in a certificate of deposit issued to the person who has deposited the money or to any other person, or

( b ) to receive from any person an amount of money (with or without interest), being a right arising from an assignable deposit which may be assigned or transferred to another person by the person who has deposited the money or by any person who has acquired the right to do so.

(6) In this section—

"assignable deposit" means a deposit of money, in any currency, which has been deposited with any person whether it is to be repaid with or without interest and which, at the direction of the depositor, may be assigned with or without interest to another person; and

"certificate of deposit" means a document relating to money, in any currency, which has been deposited with the issuer or some other person, being a document which recognises an obligation to pay a stated amount to bearer or to order, with or without interest, and being a document by the delivery of which, with or without endorsement, the right to receive that stated amount, with or without interest, is transferable.

Taxation of shares issued in lieu of cash dividends.

56.—(1) In this section—

"company" means any body corporate;

"share" means share in the share capital of a company and includes stock and any other interest in the company.

(2) If any person, as a consequence of the exercise, whether before, on or after the declaration of a distribution of profits by a company, of an option to receive in respect of shares in the company either a sum in cash or additional share capital of the company, receives such additional share capital, he shall be deemed to have received from the company, instead of such sharp capital income equal to the sum he would have received if he had received the distribution in cash instead.

(3) Any income deemed under subsection (2) to have been received from a company by a person shall—

( a ) if the person's profits are chargeable to corporation profits tax, be treated as profits to which Part V of the Finance Act, 1920, applies and be charged to corporation profits tax accordingly;

( b ) if the company is resident outside the State, be treated as income from securities and possessions outside the State and be assessed and charged to tax under Case III of Schedule D;

( c ) if the company is resident in the State, be treated as profits or gains not falling under any other Case of Schedule D and not charged by virtue of any other Schedule and be assessed and charged to tax under Case IV of Schedule D.

(4) For the purposes of this section an option to receive either a dividend in cash or additional share capital is conferred on a person not only where he is required to choose one or the other, but also where he is offered the one subject to a right, however expressed, to choose the other instead, and a person's abandonment of, or failure to exercise, such a right is to be treated for those purposes as an exercise of the option.

Transfer of assets abroad.

57.—For the purpose of preventing the avoiding by individuals ordinarily resident in the State of liability to tax by means of transfers of assets by virtue or in consequence whereof, either alone or in conjunction with associated operations, income becomes payable to persons resident or domiciled out of the State, it is hereby enacted as follows:—

(1) Where by virtue or in consequence of any such transfer, either alone or in conjunction with associated operations, such an individual has, within the meaning of this section, power to enjoy, whether forthwith or in the future, any income of a person resident or domiciled out of the State which, if it were income of that individual received by him in the State, would be chargeable to tax by deduction or otherwise, that income shall, whether it would or would not have been chargeable to tax apart from the provisions of this section, be deemed to be income of that individual for all the purposes of the Income Tax Acts.

(2) Where, whether before or after any such transfer, such an individual receives or is entitled to receive any capital sum the payment whereof is in any way connected with the transfer or any associated operation, any income which, by virtue or in consequence of the transfer; either alone or in conjunction with associated operations, has become the income of a person resident or domiciled out of the State shall, whether it would or would not have been chargeable to tax apart from the provisions of this section, be deemed to be the income of that individual for all the purposes of the Income Tax Acts.

In this subsection "capital sum" means—

( a ) any sum paid or payable by way of loan or repayment of a loan, and

( b ) any other sum paid or payable otherwise than as income, being a sum which is not paid or payable for full consideration in money or money's worth.

(3) Subsections (1) and (2) shall not apply if the individual shows in writing or otherwise to the satisfaction of the Revenue Commissioners either—

( a ) that the purpose of avoiding liability to taxation was not the purpose or one of the purposes for which the transfer or associated operations or any of them was effected; or

( b ) that the transfer and any associated operations were bona fide commercial transactions and were not designed for the purpose of avoiding liability to taxation.

In any case where a person is aggrieved by a decision taken by the Revenue Commissioners in exercise of their functions under this subsection the person shall be entitled to appeal to the Appeal Commissioners against the decision of the Revenue Commissioners and the Appeal Commissioners shall hear and determine the appeal as if it were an appeal against an assessment to tax and the provisions of the Income Tax Acts relating to It rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

(4) For the purposes of this section "an associated operation" means, in relation to any transfer, an operation of any kind effected by any person in relation to any of the assets transferred or any assets representing, whether directly or indirectly, any of the assets transferred, or to the income arising from any such asset, or to any assets representing, whether directly or indirectly, the accumulations of income arising from any such asset.

(5) An individual shall, for the purposes of this section, be deemed to have power to enjoy income of a person resident or domiciled out of the State if—

( a ) the income is in fact so dealt with by any person as to be calculated at some point of time, and whether in the form of income or not, to enure for the benefit of the individual, or

( b ) the receipt or accrual of the income operates to increase the value to the individual of any assets held by him or for his benefit, or

( c ) the individual receives or is entitled to receive, at any time, any benefit provided or to be provided out of that income or out of moneys which are or will be available for the purpose by reason of the effect or successive effects of the associated operations on that income and on any assets which directly or indirectly represent that income, or

( d ) the individual has power, by means of the exercise of any power of appointment or power of revocation or otherwise, to obtain for himself whether with or without the consent of any other person, the beneficial enjoyment of the income, or may, in the event of the exercise of any power vested in any other person, become entitled to the beneficial enjoyment of the income, or

( e ) the individual is able in any manner whatsoever; and whether directly or indirectly, to control the application of the income.

(6) In determining whether an individual has power to enjoy income within the meaning of this section, regard shall be had to the substantial result and effect of the transfer and any associated operations, and all benefits which may at any time accrue to the individual (whether or not he has rights at law or in equity in or to those benefits) as a result of the transfer and any associated operations shall be taken into account irrespective of the nature or form of the benefits.

(7) For the purposes of this section, any body corporate incorporated outside the State shall be treated as if it were resident out of the State whether it is so resident or not.

(8) For the purposes of this section—

( a ) a reference to an individual shall be deemed to include the wife or husband of the individual,

( b ) "assets" includes property or rights of any kind and transfer" in relation to rights, includes the creation of those rights,

( c ) "benefit" includes a payment of any kind,

( d ) references to income of a person resident or domiciled out of the State shall, where the amount of the income of a company for any year or period has been apportioned under section 530 of the Income Tax Act, 1967 , include references to so much of the income of the company for that year or period as is equal to the amount so apportioned to that person,

( e ) references to assets representing any assets, income or accumulations of income include references to shares in or obligations of any company to which, or obligations of any other person to whom, those assets, that income or those accumulations are or have been transferred,

( f ) "company" means any body corporate or unincorporated association.

(9) The provisions of this section shall apply for the purposes of assessment to tax for the year 1974-75 and subsequent years, and shall apply in relation to transfers of assets and associated operations whether carried out before or after the commencement of this Act.

Deductions and reliefs in relation to income chargeable to tax under section 57.

58.—(1) Tax chargeable by virtue of the preceding section shall be charged under Case IV of Schedule D.

(2) In computing the liability to tax of an individual chargeable by virtue of the preceding section, the same deductions and reliefs shall be allowed as would have been allowed if the income deemed to be his by virtue of that section had actually been received by him.

(3) Where an individual has been charged to tax on any income deemed to be his by virtue of the preceding section and that income is subsequently received by him, it shall be deemed not to form part of his income again for the purposes of the Income Tax Acts.

(4) In any case where an individual has for the purposes of the preceding section power to enjoy income of a person abroad by reason of his receiving any such benefit as is referred to in section 57 (5) (c), the individual shall be chargeable to tax by virtue of the preceding section under Case IV of Schedule D for the year of assessment in which the benefit is received on the whole of the amount or value of that benefit except in so far as it is shown that the benefit derives directly or indirectly from income on which he has already been charged to tax for that or a previous year of assessment.

Power to obtain information.

59.—(1) The Revenue Commissioners or such officer as the Revenue Commissioners may appoint may by notice in writing require any person to furnish them within such time as they may direct (not being less than twenty-eight days) with such particulars as they think necessary for the purposes of sections 57, 58 and 60.

(2) The particulars which a person must furnish under this section, if, he is required by such a notice so to do, include particulars—

( a ) as to transactions with respect to which he is or was acting an behalf of others, and

( b ) as to transactions which in the opinion of the Revenue Commissioners or of such officer as the Revenue Commissioners may appoint it is proper that they should investigate for the purposes of sections 57, 58 and 60 notwithstanding that in the opinion of the person to whom the notice is given, no liability to tax arises under the said sections.

( c ) as to whether the person to whom the notice is given has taken or is taking any, and if so what, part in any, and if so what, transactions of a description specified in the notice.

(3) Notwithstanding anything in subsection (2), a solicitor shall not be deemed for the purposes of paragraph (c) thereof to have taken part in a transaction by reason only that he has given professional advice to a client in connection with that transaction, and shall not, in relation to anything done by him on behalf of a client, be compellable under this section, except with the consent of his client, to do more than state that he is or was acting on behalf of a client, and give the name and address of his client and also—

( a ) in the case of anything done by the solicitor in connection with the transfer of any asset by or to an individual ordinarily resident in the State to or by any such body corporate as is hereinafter mentioned, or in connection with any associated operation in relation to any such transfer, the names and addresses of the transferor and the transferee or of the persons concerned in the associated operations, as the case may be;

( b ) in the case of anything done by the solicitor in connection with the formation or management of any such body corporate as is hereinafter mentioned, the name and address of the body corporate;

( c ) in the case of anything done by the solicitor in connection with the creation, or with the execution of the trusts, of any settlement by virtue or in consequence whereof income becomes payable to a person resident or domiciled out of the State, the names and addresses of the settlor and of that person.

The bodies corporate mentioned in the preceding provisions of this section are bodies corporate resident or incorporated outside the State which are, or if incorporated in the State would be, companies within the meaning of section 530 (6) of the Income Tax Act, 1967 .

(4) Nothing in this section shall impose on any bank the obligation to furnish any particulars of any ordinary banking transactions between the bank and a customer carried out in the ordinary course of banking business, unless the bank has acted or h acting on behalf of the customer in connection with the formation or management of any such body corporate as is mentioned in subsection (3) (b) or in connection with the creation, or with the execution of the trusts, of any such settlement as is mentioned in subsection (3) (c).

(5) In this section "settlement" and "settlor" have the meanings assigned to them by section 16 (3) (h) of the Finance (Miscellaneous Provisions) Act 1968 .

(6) Schedule 15 to the Income Tax Act 1967 , is hereby amended by the insertion in column 2 thereof of " Finance Act, 1974 , section 59".

Saver.

60.—Where any income of any person is by virtue of any provisions of the Income Tax Act, and in particular, but without prejudice to the generality of the foregoing, by virtue of section 57, to be deemed to be income of any other person, that income is not exempt from tax either—

( a ) as being derived from any stock or other security to which section 464 , 468 , 470 or 474 of the Income Tax Act, 1967 , applies; or

( b ) by virtue of section 50 or 462 of the Income Tax Act 1967 ,

by reason of the first-mentioned person not being resident, or not being ordinarily resident, or being neither domiciled nor ordinarily resident, in the State.

Application of provisions of Income Tax Acts.

61.—All the provisions of the Income Tax Acts relating to the charge, assessment, collection and recovery of tax, to appeals against assessments and to cases to be stated for the opinion of the High Court shall apply to tax chargeable by virtue of section 57 subject to any necessary modifications.

Taxation of rents restriction in respect of certain rent and interest.

62.—(1) This section applies to—

( a ) rent in respect of premises, or

( b ) interest on borrowed money employed in the purchase, improvement or repair of premises,

payable by a person who is, chargeable to tax in accordance with the provisions of section 81 of the Income Tax Act, 1967 (inserted by the Finance Act, 1969 ), on the profits or gains arising from rent in respect of those premises for a period prior to the date on which the premises are first occupied by a lessee for the purpose of a trade or undertaking or for use as a residence.

(2) No deduction shall be allowed, for the year 1974-75 or any subsequent year of assessment, under subsection (5) of the said section 81 in respect of rent or interest to which this section applies.

(3) Where, for the year 1973-74 or any earlier year of assessment—

( a ) a deduction such as is referred to in subsection (2) has been allowed under subsection (5) of the said section 81 and there is a deficiency within the meaning of subsection (4) of the said section 81, or

( b ) an amount falls to be treated as a loss under section 89A of the Income Tax Act, 1967 , (inserted by the Finance (Miscellaneous Provisions) Act, 1968 ), by virtue of an interest payment, so much of any such deficiency as is attributable to the allowance of the deduction aforesaid or any such amount treated as a loss or any portion of such amount shall not be carried forward, or set against profits or gains for the year 1974-75 or any subsequent year of assessment under the provisions of section 89 or 310 of the Income Tax Act, 1967 .

Amendment of section 20 of the Finance (Miscellaneous Provisions) Act, 196.

63.—(1) Section 20 of the Finance (Miscellaneous Provisions) Act, 1968 , is hereby amended by—

( a ) the substitution in subsection (1) of "development or the securing of the development of land and after the development" for "construction or the securing of the construction of a building and after the construction",

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

"( b ) at the time of the sale the company has (directly or indirectly) an interest in the development and the value of that interest and any interest which the company so has at that time in any other development (not being a development completed, more than six years before that time nor a development in relation to which the condition specified in paragraph ( c ) is not satisfied) carried out or secured by the company amounts to one-fifth or more of the net assets of the company;",

( c ) the substitution of "development" for "building" in each place where it occurs in subsections (4), (9), (10) and (13) ( c ),

( d ) the substitution of the following subsection for subsection (11):

"(11) Where a development has been commenced or carried out by a company on land in which a company connected with that company has an interest and after the development has commenced and not later than six years after its completion a person acquires control of the first company, then, as respects sales to that person of shares in the company having the interest in the land (whether effected before or after that person acquires control of the first company) the foregoing subsections shall apply as they apply to such a company as is therein mentioned but with the substitution for references to an interest in the development of references to an interest in the land.", and

( e ) the substitution of the following subsection for subsection (12):

"(12) For the purposes of the foregoing subsections an uncompleted development shall be taken to include so much of any materials belonging to the company as are required for the development and a development whether completed or not shall be taken to include the land related to the development.",

and the said subsections (1), (4), (9), (10) and (13) (c), as so amended, are set out in the Table to this section.

(2) Section 20 of the Finance (Miscellaneous Provisions) Act, 1968 , to amended by subsection (1), stall not apply or have effect in any case where the shares of the relevant company were sold before the 3rd day of April, 1974.

TABLE

(1) Where the activities of a company consist of or include the development or the securing of the development of land and after the development has begun and not later than six years after its completion shares in the company are sold to a person who has, or in consequence of the sale will have, control of the company, and apart from this section the consideration for the sale would not be a receipt of an income nature in the hands of the seller, the consideration shall, if the conditions specified in subsection (2) are satisfied, be deemed to be income of the seller up to the amount specified in subsection (5), and shall be chargeable under Case IV of Schedule D accordingly

(4) Where before the sale of shares mentioned in subsection (1) the company—

( a ) has disposed of its interest in the development, or of an interest which derives therefrom, to the person who is the purchaser of the shares, or to a company connected with the purchaser, or

( b ) has, disposed of any interest in the development to or in favour of any person, and the purchaser of the shares, or a company connected with the purchaser acquires the interest, either before the sale or after the sale in pursuance of arrangements made not later than the sale,

subsection (1) shall apply as if the interest disposed of were still vested in the first-mentioned company at the time of the sale of the shares, and as if any assets of the company representing the consideration for the disposal of the interest were not assets of the company.

(9) Where, in consequence of a sale of shares, any amount would have, under subsection (1), been deemed to be income of the seller but for the circumstance that the condition specified in subsection (2) (c) was not satisfied, and on the sixth anniversary of the sale any interest in a development such as is mentioned in subsection (2) (b) is still held by the company, then, income of the like amount shall be deemed to have been received by the company on the said anniversary and shall be chargeable under Case IV of Schedule D accordingly.

(10) if after the sale of the shares any receipts accrue to the company from the disposal, in the course of a trade of dealing in or developing land, of an interest in a development, being an interest which the company had at the time of the sale of the shares and with respect to which the profit which would have arisen on the disposal thereof was taken into account in arriving at the amount of income chargeable to tax by reference to the sale under the foregoing provisions of this section, the receipts shall be disregarded for income tax purposes if and to the extent that is just so to do having regard to any tax charged under the said provisions.

(13) ( c ) there shall be disregarded any development provided for use, and brought into use, for the purposes of a bona fide trade carried on by the company, other than a trade of—

(i) dealing in or developing land, or

(ii) the provision of services for occupiers of land an interest in which is held by the company.

CHAPTER V Income Tax and Corporation Profits Tax

Proprietary directors and proprietary employees as members of approved retirement benefit scheme.

64.—(1) Section 15 (2) (f) of the Finance Act, 1972 , and the proviso to paragraph 4 of Schedule 3 to the Income Tax Act, 1967 , shall cease to have effect.

(2) Part III of the First Schedule us the Finance Act, 1972 . is hereby amended by the substitution for paragraph 4 of the following paragraph:

"4. The repeal of Chapter II of Part XII of the Income Tax Act, 1967 , by the Finance Act, 1972 , shall not affect section 235 (7) or section 316 (2) of the Income Tax Act, 1967 , section 3 (1) (b) (ii) of the Finance Act, 1968 , or any other enactment which contains reference to the said Chapter or to any part of it.".

Amendment of section 235 of Income Tax Act, 1967 .

65.— Section 235 of the Income Tax Act, 1967 , is hereby amended—

( a ) by the insertion in paragraph ( b ) of subsection (1) after "in his old age" of "or under a contract for the time being approved under section 235A",

( b ) by the substitution for the part of subsection (2) from the end of paragraph ( e ) to the end of the subsection of the following:

"and that it does include provision securing that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment:

Provided that the contract may provide for the payment to the individual at the time the annuity commences to be payable, but not before the 6th day of April, 1974, of a lump sum by way of commutation of part of the annuity not exceeding one-fourth of the value of the annuity if the individual elects, at or before the time when the annuity first becomes payable to him, to be paid the lump sum."

( c ) by the insertion in subsection (3) after paragraph ( c ) of the following paragraph:

"( cc ) if the individual's occupation is one in which persons customarily retire after attaining the age of seventy, for the annuity to commence after he attains that age (but not after he attains the age of eighty);",

( d ) by the insertion in subsection (4)

(i) after "trust scheme" of "or part of a trust scheme",

(ii) after "the scheme" of "or the aforesaid part of the scheme", and

(iii) after "a scheme" of "or part of a scheme",

and the said paragraph (b) and subsections (2), (3) and (4), as so amended, are set out in the Table to this section.

TABLE

( b ) pays a premium or other consideration under an annuity contract for the time being approved by the Revenue Commissioners as being a contract the main benefit secured by which is a life annuity for the individual in his old age or under a contract for the time being approved under section 235A (hereinafter in this Chapter referred to as a qualifying premium),

relief from tax may be given in respect of the qualifying premium under section 236.

(2) Subject to subsection (31 the Revenue Commissioners shall not approve a contract unless it appears to them to satisfy the conditions that it is made by the individual with a person lawfully carrying on in the State the business of granting annuities on human life, and that it does not—

( a ) provide for the payment by that person during the life of the individual of any sum except sums payable by way of annuity to the individual,

( b ) provide for the annuity payable to the individual to commence before he attains the age of sixty or after he attains the age of seventy,

( c ) provide for the payment by that person of any other sums except sums payable by way of annuity to the individual's widow or widower and any sums which, in the event of no annuity becoming payable either to the individual or to a widow or widower, are payable to the individual's personal representatives by way of return of premiums, by way of reasonable interest on premiums or by may of bonuses out of profits,

( d ) provide for the annuity, if any, payable to a widow or widower of the individual to be of a greater annual amount than that paid or payable to the individual, or

( e ) provide for the payment of any annuity otherwise than for the life of the annuitant,

and that it does include provision securing that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment:

(3) The Revenue Commissioners may, if they think fit, and subject to any conditions they think proper to impose, approve a contract otherwise satisfying the foregoing conditions, notwithstanding that the contract provides for one or more of the following matters:

( a ) for the payment after the individual's death of an annuity in a dependant not the widow or widower of the individual;

( b ) for the payment to the individual of an annuity commencing before he attains the age of sixty, if the annuity is payable on his becoming permanently incapable through infirmity of mind or body of carrying on his own occupation or any occupation of a similar nature for which he is trained or fitted;

( c ) if the individual's occupation is one in which persons customarily retire before attaining the age of sixty, for the annuity to commence before he attains that age (but not before he attains the age of fifty);

( cc ) if the individuals occupation is one in which persons customarily retire after attaining the age of seventy for the annuity to commence after he attains that age (but not after he attains the age of eighty);

( d ) for the annuity payable to any person to continue for a term certain (not exceeding ten years) notwithstanding his death within that term, or for the annuity payable to any person to terminate, or be suspended, on marriage (or remarriage) or in other circumstances;

( e ) in the case of an annuity which is to continue for a term certain, for the annuity to be assignable by will, and in the event of any person dying entitled to it, for it to be assignable by his personal representatives in the distribution of the estate so as to give effect to a testamentary disposition, or to the rights of those entitled on intestacy or to an appropriation of it to a legacy or to a share or interest in the estate.

(4) The foregoing provisions of this section shall apply in relation to a contribution under a trust scheme or part of a trust scheme approved by the Revenue Commissioners as they apply in relation to a premium under an annuity contract, so approved, with the modification that, for the condition as to the person with whom the contract is made, there shall be substituted a condition that the scheme or the aforesaid part of the scheme—

( a ) is established under the law of, and administered in, the State,

( b ) is established for the benefit of individuals engaged in or connected with a particular occupation (or one or other of a group of occupation and for the purpose of providing retirement annuities for them, with or without subsidiary benefits for their families or dependants, and

( c ) is so established under irrevocable trusts by a body of persons comprising or representing the majority of the individuals so engaged in the State,

and with the necessary adaptations of other references to the contract to the person with whom it is made; and exemption from income tax shall be allowed in respect of income derived from investments or deposits of any fund maintained for the purpose aforesaid under a scheme or part of a scheme for the time being approved under this subsection.

Approval of contracts for dependants or for life assurance.

66.—Chapter III of Part XII of the Income Tax Act, 1967 , is hereby amended by the insertion alter section 235 of the following section:

"235A. (1) The Revenue Commissioners may approve for the purposes of this Chapter a contract made by an individual with a person lawfully carrying on in the State the business of granting annuities on human life if—

( a ) the main benefit secured by the contract is the provision of an annuity for the wife or husband of the individual or for any one or more dependants of the individual, or

( b ) the sole benefit secured by the contract is the provision of a lump sum, on the death of the individual before he attains the age of 70 (or any later age approved under section 235 (3) (cc)), being a lump sum payable to his personal representatives.

(2) The Revenue Commissioners shall not approve a contract made by an individual with such a person as aforesaid under subsection (1) ( a ) unless it appears to them to satisfy the following conditions, that is to say—

( a ) that any annuity payable to the wife or husband or dependant of the individual commences on the death of the individual,

( b ) that any annuity payable under the contract to the individual commences at a time after the individual attains the age of 60, and, unless the individual's annuity is one to commence on the death of a person to whom an annuity would be payable under the contract if that person survived the individual, cannot commence after the time when the individual attains the age of 70, or any greater age approved under section 235 (3) (cc),

( c ) that the contract does not provide for the payment by such person of any sum, other than any annuity payable to the individual's wife or husband or dependant or to the individual except in the event of no annuity becoming payable under the contract, any sums payable to the individual's personal representatives by way of return of premiums, by way of reasonable interest on premiums or by way of bonuses out of profits,

( d ) that the contract does not provide for the payment of any annuity otherwise than for the life of the annuitant,

( e ) that the contract provides that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment.

(3) The Revenue Commissioners may, if they think fit, and subject to any conditions that they think proper to impose, approve a contract under subsection (1) ( a ) notwithstanding that, in one or more respects, it does not appear to them to satisfy the conditions specified in subsection (2).

(4) Subsections (2) and (3) of section 235 shall not apply to the approval of a contract, under this section.

(5) The Revenue Commissioners may approve a crust scheme, or part of a trust scheme, otherwise satisfying the conditions specified in paragraphs (a), (b) and ( c ) of section 235 (4) notwithstanding that its main purpose is to provide annuities for the wives, husbands and dependants of the individuals, or lump sums payable to the individuals' personal representatives on death and—

( a ) the preceding provisions of this section shall apply, with any necessary modifications, in relation to such approval

( b ) the provisions of this Chapter shall apply to the scheme or part of the scheme when so approved as day apply to a contract approved under this section,

( c ) the exemption from income tax provided in section 235 (4) shall apply to the scheme or part of the Theme when so approved.

(6) Except as otherwise provided in this Chapter, any reference in the Income Tax Acts to a contract, scheme or part of a scheme approved under section 235 shall include a reference to a contract scheme or part of a scheme approved under this section.

(7) Approval under this section shall not affect relief for a year of assessment before the year 1974-75.".

Amendment of section 236 of and Schedule 5 to Income Tax Act, 1967 .

67.—(1) Section 236 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsections (1) and (2) of the following subsections:

"(1) Where relief is to be given under this section in respect of any qualifying premium paid by an individual, the amount of that premium shall, subject to the provisions of this section, be deducted from or set off against his relevant earnings for the year of assessment in which the premium is paid.

(1A) Subject to the provisions of this section and of Schedule 5, the amount which may be deducted or set off in any year of assessment (whether in respect of one or more qualifying premiums and whether or not including premiums in respect of a contract approved under section 235A)—

( a ) shall not be more than the sum of £1,500, and

( b ) shall not be more than 15 per cent of the individual's not relevant earnings for that year,

and the amount to be deducted shall to the greatest extent possible include qualifying premiums in respect of contracts approved under section 235A.

(1B) Subject to the provisions of this section, the amount which may be deducted or set off in any year of assessment in respect of qualifying premiums paid under a contract approved under section 235A (whether in respect of one or more such premiums)—

( a ) shall not be more than the sum of £500 and

( b ) shall not be more than 5 per cent. of the individuals not relevant earnings for that year.

(1C) Where the condition in section 235 (1) ( a ) is satisfied as respects part only of the year, then for the said sums of £1,500 and £500 mentioned in subsections (1A) and (1B) there shall be substituted sums which respectively bear to £1,500 and £500 the same proportion as that part bears to the whole year.

(2) If in any year of assessment a reduction or a greater reduction would be made under this section in the relevant earnings of an individual but for either or both of the following reasons, that is—

( a ) an insufficiency of net relevant earnings, or

( b ) the operation of subsection (1B) ( b ) (as respects a qualifying premium paid under a contract approved under section 235A),

the amount of the reduction which would be made but for those, reasons less the amount of any reduction which is made in that year, shall be carried forward to the next following year, and shall be treated for the purposes of relief under this section as the amount of a qualifying premium paid in that following year.

(2A) If and so far as an amount once carried forward under subsection (2) (and treated as the amount of a qualifying premium paid in the said following year) is not deducted from or set off against the individual's net relevant earnings for that year of assessment, it shall be carded forward again to the next following year (and treated as the amount of a qualifying premium paid in that year), and so on for succeeding years.

(2B) The provisions of this subsection shall have effect for determining whether and how far an amount carried forward under subsection (2) is to be treated as paid under an individuals contract on the one hand or a contract approved under section 235A on the other.

Any part of the amount carried forward which is referable to a qualifying premium paid under a contract approved under section 235A shall, when carried forward on the first or any subsequent occasion, be treated for the purposes of this Chapter as the amount of a qualifying premium paid under a contract so approved. The balance (if any) of the amount shall when similarly carried forward be treated as a qualifying premium paid under an individual's contract.

In this subsection 'individuals contract' means an approved annuity contract other than one approved under section 235A.

(2C) Subsections (2), (2A) and (2B) shall have effect as respects amounts carried forward from years before the year 1974-75 as well as respects later years.".

(2) Section 236 of the Income Tax Act 1967 , is hereby further amended by the insertion after subsection (10) of the following subsection:

"(11) Where a relevant assessment to tax becomes final and conclusive on a date after the 5th day of October in the year of assessment to which it relates, a qualifying premium paid

( a ) after that year of assessment, and

( b ) not more than six months after that date,

may, if the individual so elects not more than six months after that date, be treated for the purposes of this section as paid in the year of assessment (and not in the year in which it is paid):

Provided that where either—

(i) the amount of that premium, together with any qualifying premiums paid by him in the year to which the assessment relates (or treated as so paid by virtue of any previous election under this subsection), exceeds the maximum amount of the reduction which may be made under this section in his relevant earnings for that year, or

(ii) the amount of that premium itself exceeds the increase in that maximum amount which is due to taking into account the income on which the assessment is made.

then the election shall have no effect as respects the excess.

In this subsection 'relevant assessment to tax' means an assessment on the individual's relevant earnings.".

(3) Schedule 5 to the Income Tax Act, 1967 , is hereby amended—

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

"1. Subject to the following paragraphs, in the case of an individual who is the holder of a pensionable office or employment, subsections (1A) and (1C) of section 236 shall have effect with the substitution for references to £1,500 of references to £1,500 less 15 per cent. of his pensionable emoluments for the year of assessment.",

( b ) by the substitution for subparagraph ( b ) of paragraph 2 of the following subparagraph:

"( b ) if the condition is satisfied at such a time aid is also satisfied at a time during the remainder of the year, paragraph 1 shall apply, but for 15 per cent. there shall be substituted therein such less proportion as may be just.", and

( c ) by the substitution for paragraph 4 of the following—

"4. Subject to paragraph 5, in the case of an individual born at a time specified in the first column of the Table set out below, section 236 (1A) and (1C) and Part I of this Schedule, shall have effect with the substitution for references to £1,500 and to 15 per cent. of references respectively to such sum and such percentage as are specified for his cast in the second and third columns of the Table.

Year of Birth	Sum	Percentage
	£
1916 or 1917	1,600	16
1914 or 1915	1,700	17
1912 or 1913	1,800	18
1910 or 1911	1,900	19
1909 or any earlier year	2,000	20

Export of certain goods.

68.—(1) In this section—

"the Board" means An Bord Bainne Co-operative Limited;

"the Commission" means the Pigs and Bacon Commission;

"milk product" means butter, whey-butter, cream, cheese, condensed milk, dried or powdered milk, dried or powdered skim-milk, dried or powdered whey, chocolate crumb, casein, butter-oil, lactose, and any other product which is made wholly or mainly from milk or from a by product of milk and which is approved for the purposes of this section by the Minister for Finance after consultation with the Minister for Agriculture and Fisheries;

"pigmeat product" means bacon and cuts thereof including ham pork carcases and pork sides and cuts thereof, unrendered pig fat and canned pigmeat products,

"the relevant enactments" means Part III of the Finance (Miscellaneous Provisions) Act 1956 , and Chapter IV of Part XXV of the Income; Tax Act, 1967.

(2) Where, whether before or after the passing of this Act—

( a ) a body corporate produces a pigmeat product and sells it to the Commission, and

( b ) that product is exported out of the State by the Commission.

the relevant enactments shall apply as it the said product had been exported out of the State by the body corporate and any amount receivable by the body corporate from the sale of the said product to the Commission shall be deemed for the purposes of the relevant enactments to be an amount receivable from the sale of goods so exported.

(3) Where, whether before or after the passing of this Act—

( a ) a body corporate manufactures a milk product and sells it to the Board, and

( b ) that product is exported out of the State by the Board,

the relevant enactments shall apply as if the said product had been exported out of the State by the body corporate, and any amount receivable by the body corporate from the sale of the said product to the Board shall be deemed to the purposes of the relevant enactments to be an amount receivable from the sale of goods so exported.

Amendment of section 429 of Income Tax Act, 1967 .

69.— Section 429 of the Income Tax Act, 1967 , is hereby amended—

( a ) by the insertion in the proviso to subsection (4) (inserted by the finance Act, 1971 )—

(i) after "of the judge" of "or by giving effect to an agreement under subsection (6)", and

(ii) after "by the judge" of "or the giving of effect to the agreement under subsection (6)", and

( b ) by the addition of the following subsection:

"(6) Where, following an application for the rehearing of an appeal by a judge of the Circuit Court in accordance with subsection (1), there is an agreement within the meaning of subparagraphs (b), (c) and ( e ) of section 416 (3), between the inspector and the appellant in relation to the assessment, the inspector shall give effect to the agreement and thereupon, if the agreement is that the assessment is to stand good or is to be amended, the assessment or the amended assessment, as the case may be, shall have the same force and effect as if it were an assessment in repel of which no notice of appeal had been given."

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

TABLE

Provided that if the amount of the assessment is altered by the determination of the judge or by giving effect to an agreement under subsection (6) then—

( a ) if too much tax has been paid, the amount or amounts overpaid shall, save where the interest amounts to less than £1, be repaid with interest at the rate provided by section 550 (1) from the date or dates of payment of the amount or amounts giving rise to the overpayment to the date on which the repayment is made; or

( b ) if too little tax has been paid, any balance shall be payable but the provisions of section 550 (2A) shall apply as if the appeal were an appeal to the Appeal Commissioners and the determination of the appeal by the judge or the giving of effect to the agreement under subsection (6) were a determination of the appeal by the Appeal Commissioners.

Amendment of section 489 of Income Tax Act, 1967 .

70.— Section 489 (1) of the Income Tax Act, 1967 , is hereby amended by the deletion of "(including as regards the matters mentioned in paragraphs (c) and (d) of this subsection the Collector)" and the said section 489 (1), as so amended, is set out in the Table to this section.

TABLE

(1) In any proceedings in the Circuit Court or the District Court for or in relation to the recovery of income tax or sur-tax, an affidavit duly made by an officer of the Revenue Commissioners deposing to any of the following matters—

( a ) that the assessment of tax was duly made,

( b ) that the assessment has become final and conclusive,

( c ) that the tax or any, specified part thereof is due and outstanding,

( d ) that demand for the payment of the tax has been duly made,

shall be evidence, until the contrary is proved, of the matters so deposed to.

Abolition of payment of tax by means of stamps.

71.—The following enactments, that is to say—

( a ) section 130 of the Income Tax Act, 1967 , and any regulations made thereunder;

( b ) so much of any regulations made under section 127 of the said Act as refers to stamp books;

( c ) sections 7 (3) and 8 (3) and the proviso to section 9 ( a ) of the Finance Act, 1968 ,

shall not apply or have effect in relation to tax for the year 1974-75 or any subsequent year of assessment.

Registration of certain persons as employers and requirement to send certain notifications.

72.—(1) Where the Revenue Commissioners have reason to believe that a person is liable to send them a notification under Regulation 8 of the Income Tax (Employments) Regulations, 1960 and has not done so, they may register his name and address in the register kept and maintained under paragraph (4) of the said Regulation 8 (in this section referred to as the register) and serve a notice on him stating that he has been so registered.

(2) Where a notice is served under subsection (1) on a person, the following provisions shall apply—

( a ) if the person claims that he is not liable to send the notification aforesaid, he may, by giving notice in writing to the Revenue Commissioners within the period of fourteen days from the service of the notice under subsection (1), require the claim to be referred to the Appeal Commissioners and their decision on the claim shall be final and conclusive,

( b ) if no such claim is, within the time specified in paragraph ( a ), required to be referred, or if such claim is required to be referred and there is a determination by the Appeal Commissioners against the appellant, the person shall be regarded, for the purposes of the aforesaid Regulations, as an employer who had sent a notification under paragraph (1) of the said Regulation 8,

( c ) if a claim is required to be referred and there is a determination by the Appeal Commissioners in favour of the appellant, the Revenue Commissioners shall thereupon delete his name and address from the register.

(3) ( a ) Where a person whose name and address is registered in the register is not liable, under Regulation 31 of the regulations referred to in subsection (1), to remit to the Collector any amount of tax for an income tax month he shall, within the period of nine days from the end of that month, make a declaration to that effect in a form prescribed by the Revenue Commissioners and shall send that form to the Collector,

( b ) where a person whose name and address is registered in the register comes to pay emoluments to which Chapter IV of Part V of the Income Tax Act, 1967 , applies, he shall, within, the period of fourteen days from the date on which he ceased to pay such emoluments, notify the Revenue Commissioners to that effect.

(4) The provisions of section 128 of the Income Tax Act, 1967 , shall apply to a non-compliance with subsection (3) as they apply to a non-compliance with regulations under Chapter IV of that Act.

Furnishing copies of rates and producing valuations to inspector.

73.—(1) For the purpose of assessing tax chargeable under Schedule D, the secretary, clerk, or person acting as such, to a rating authority shall, when required by notice from an inspector, transmit to him, within such time as may be specified in the notice, true copies of the last county rate or municipal rate made by the authority for its rating area or any part thereof.

(2) The Revenue Commissioners shall pay to any such person the expenses of making all such copies, not exceeding the rate of £1 for every one hundred ratings.

(3) Every person shall, at the request of any inspector, or other officer acting in the execution of the Income Tax Acts, produce as soon as may be to such inspector or officer, as appropriate, any survey or valuation or record on which the rates for any rating area, or part thereof, are assessed, made or collected, or any rate or assessment made under any Act relating to the county rate or municipal rate, which is in his custody or possession and permit the inspector or other officer to inspect the same and to take copies thereof or extracts therefrom, without any payment.

(4) In this section "rating authority" means—

( a ) the corporation of a county or other borough.

( b ) the council of a county, or

( c ) the council of an urban district.

(5) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column 2 thereof of " Finance Act, 1974 , section 73".

Marginal coal mine allowance.

74.—(1) In this section—

"the Acts relating to corporation profits tax" means Part V of the Finance Act, 1920, and the enactments amending or extending that Part;

"marginal coal mine" means a coal mine in the State that is being worked for the purpose of the production of coal and in respect of which the Minister for Industry and Commerce gives a certificate stating that he is satisfied that the profits derived or to be derived from the working of that mine are such that, if tax is to be charged on those profits in accordance with the provisions of the Income Tax Acts and the Acts relating to corporation profits tax, but excluding the provisions of this section, the mine is unlikely to continue to be worked.

(2) The Minister for Finance, after consultation with the Minister for Industry and Commerce, may direct, in respect of a marginal coal mine, that, for any particular year of assessment or any particular accounting period, the tax chargeable on the profits of that mine is to be reduced to such amount (including nil) as may be specified by him.

(3) Where a person is carrying on the trade of working a coal mine in respect of which the Minister for Finance gives a direction under subsection (2) in respect of a year or assessment or accounting period, an allowance shall be made as a deduction in charging the profits of the said trade to tax for that year of assessment and as a deduction in computing the profits of the said trade for purposes of corporation profits tax for that accounting period of such amount or amounts as will ensure that the tax charged in respect of the profits of the said trade shall equal the amount specified by that Minister.

CHAPTER VI Corporation Profits Tax

Continuance of certain exemptions from corporation profits tax.

75.—The exemptions from corporation profits tax specified in section 33 (1) of the Finance Act, 1929 , shall be given in respect of the period beginning cc the 1st day of January, 1974 and ending on the 31st day of December, 1974.

PART II CUSTOMS AND EXCISE

Waiver of small amounts of customs duty.

76.—(1) Subject to subsection (2) at this section, where the customs duty on the goods contained in one consignment or parcel imported on or after the 1st day of September, 1974, would, when computed according to the laws for the time being in force in relation to customs duties, amount to a sum not exceeding 50 pence, the duty shall be waived.

(2) The duties chargeable on tobacco, spirits and wine shall not be waived under this section.

(3) Section 7 of the Finance Act, 1962 , shall not apply to goods imported on or after the 1st day of September, 1974.

Amendment of Finance Act, 1920.

77.—(1) In this section "goods to which this section applies" means—

( a ) the mixtures, compounds and preparations mentioned in section 4 (1) of the Finance Act; 1918, which are imported on or after the 1st day of August, 1974 and are recognised by the Revenue Commissioners as being used for medical purposes, and

( b ) the spirits mentioned in section 4 (2) of the said Finance Act, 1918, which are used on or after the said 1st day of August, 1974 in the manufacture or preparation of any article so recognised or for scientific purposes.

(2) The Finance Act, 1920, shall, in respect of goods to which this section applies, be amended by the substitution of the following section for section 4:

"4. Section 4 of the Finance Act, 1918 (which provides for the reduction and allowance of duty in respect of spirits used in medical preparations or for scientific purposes), shall apply to the duties on spirits imposed by this Act as it applies to duties on spirits imposed by that Act as though it were herein set out and expressly nude applicable thereto, with the substitution for the sums specified in that section as the amount of reduction of duty or repayment of duty, of such sums as will relieve such spirits of the amount of duty payable thereon under this Act.".

Amendment of section 21 of Finance Act, 1935 .

78.— Section 21 of the Finance Act, 1935 , is hereby amended by the insertion of the following subsection after subsection (13):

"(13A) Any officer of the Revenue Commissioners and any member of the Garda Síochána may, at any time between the hours of 8 a.m. and 6 p.m. on any day—

( a ) enter and inspect any premises, other than a dwelling, and bring on to the premises any motor vehicle being used by him in the course of his duties,

( b ) examine and take samples of any hydrocarbon oil on or in any motor vehicle on those premises,

( c ) interrogate the person in charge of such vehicle in regard to such oil, and

( d ) if such oil is hydrocarbon oil chargeable with either the said customs duty or the said excise duty, require of such person proof of the payment of such duty an such oil.".

Amendment of section 5 of Finance Act, 1962 .

79.— Section 5 of the Finance Act, 1962 , is hereby amended by the substitution of the following subsection for subsection (5):

"(5) Every licensed manufacturer of tobacco shall, on and after the 11th day of April 1974, be entitled to receive a rebate as follows in respect of unmanufactured tobacco received by him upon which the duty of customs imposed by section 20 of the Finance Act, 1932 , or the duty of excise imposed by section 19 of the Finance Act, 1934 , has been paid:—

	Rate of Rebate
Where the quantity received in any year commencing on the 11th day of April—
does not exceed 50, 000 lbs	£0·45 per lb. for each lb. thereof
exceeds 50, 000 lbs.	£0·075 per lb. for each of the first 50,000 lbs.".

Confirmation of Orders.

80.—The Orders mentioned in the Table to this section are hereby confirmed.

TABLE

S.I. No. 158 of 1973	Imposition of Duties (No. 207) (Customs Duties and Form of Customs Tariff) Order, 1973.
S.I. No. 249 of 1973	Imposition of Duties (No. 208) (Beer, Spirits and Tobacco) Order, 1973.
S.I. No. 341 of 1973	Imposition of Duties (No. 212) (Customs Duties and Form of Customs Tariff) Order, 1973.

PART III STAMP DUTIES

Amendment of section 65 of Finance Act, 1973 .

81.—(1) Section 65 of the Finance Act, 1973 , is hereby amend by the addition of the following:

"Provided that this section shall apply only in relation to the construction, alteration or enlargement of a building situated in the area comprising the county borough of Dublin and the county of Dublin, including the borough of Dun Laoghaire.".

(2) This section shall come into operation on the 1st day of August, 1974, or the date of the passing of this Act, whichever is the later.

Revocation of order.

82.—The Imposition of Duties (No. 210) (Stamp Duty on Certain Instruments) Order, 1973, is hereby revoked as on and for the 1st day of August, 1974, or the date of the passing of this Act, whichever is the later.

Alteration of stamp duties on conveyances and transfers on sale of stocks and marketable securities.

83.—(1) Subject to subsection (2) of this section, conveyances or transfers on sale of any 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:

Where the amount or value of the consideration for the sale does not exceed £5	10p
Exceeds £5 and does not exceed 100:—
For every £10 or part of £10 of such amount or value	20p
Exceeds £100 and does not exceed £300:—
For every £20 or part of £20 of such amount or value	40p
Exceeds £300:—
For every £50 or part of £50 of such amount or value	£1

(2) This section shall not, apply in the case of—

( a ) any conveyance or transfer of any stock or marketable security issued or made, whether before or after the commencement of this section, by or on behalf of any body corporate incorporated in the State or any body of persons formed therein, or

( b ) any conveyance or transfer of any stock registered in a branch register maintained in the State by a body corporate incorporated outside the State if, according to the law in form where the body corporate is incorporated, the conveyance or transfer is capable of being registered in the branch register only,

and, in lieu thereof in any such case, such stamp duty shall be chargeable as would have been chargeable if this section had not been enacted.

(3) This section shall come into operation on the 1st day of August, 1974, or the date of the passing of this Act whichever is the later.

PART IV MISCELLANEOUS

Capital Services Redemption Account.

84.—(1) ( a ) In this section—

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

"the 1973 amending section" means section 91 of the Finance Act, 1973 ;

"the twenty-fourth 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,

( b ) references in this section to the financial year ending on the 31st day of December, 1974, are references to the period beginning on the 1st day of April, 1974, and ending on the 31st day of December, 1974.

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1974, subsection (4) of the 1973 amending section shall, subject to subsection (8) at this section, have effect with the substitution of "£5,315,286" for "£5,452,955".

(3) Subsection (6) of the 1973 amending section shall, subject to subsection (8) of this section, have effect with the substitution of "£3,355,284" for "£3,510,185".

(4) A sum of £4,373,032 to redeem borrowings, and interest thereon, in respect of capital services shall, subject to subsection (8) of this section, be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of December, 1974.

(5) The twenty-fourth 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 twenty-fourth additional annuity not exceeding £2,815,015 in any financial year, may, subject to subsection (8) of this section, be applied towards defraying the interest on the public debt.

(7) The balance of the twenty-fourth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

(8) Where, by virtue of this section or of any other enactment, an annuity to redeem borrowings, and interest thereon, in respect of capital services is charged on the Central Fund or on the growing produce thereof and an amount of that annuity may be applied towards defraying the interest on the public debt, then—

( a ) only three-fourths of that annuity shall be so charged, and only three-fourths of that amount may be so applied, in the financial year ending on the 31st day of December, 1974 and

( b ) one-fourth of that annuity shall be so charged, and one-fourth of that amount may be so applied, in the financial year next following the last financial year in which such annuity would, apart from this subsection, be charged,

and this section and the enactment shall be construed and shall have effect accordingly.

Amendment of Provisional Collection of Taxes Act, 1927 .

85.—(1) The Provisional Collection of Taxes Act, 1927 , is hereby amended—

( a ) by the substitution of "Dáil Éireann" for "the Committee of Finance" in section 2,

( b ) by the substitution of the following section for section 4:

"4.—A resolution under this Act shall cease to have statutory effect upon the happening of whichever of the following events first occurs, that is to say:

( a ) if a Bill containing provisions to the same effect (with or without modifications) as the resolution is not read a second time by Dáil Éireann within the next twenty days on which Dáil Éireann sits after he resolution is passed by Dáil Éireann;

( b ) if those provisions of the said Bill are rejected by Dáil Éireann during the passage of the Bill through the Oireachtas;

( c ) the coming into operation of an Act of the Oireachtas containing provisions to the same effect (with or without modification) as the resolution;

( d ) the expiration of a period of four months from the date on which the resolution is expressed to take effect or, where no such date is expressed, from the passing of the resolution by Dáil Éireann.",

( c ) by the deletion of subsection (2) of section 5, and

( d ) by the substitution of "Dáil Éireann" for "the Committee on Finance" in section 6 (1) ( a ),

and the said sections 2 and 6 (1) (a), as so amended, are set out in the Table to this section.

(2) This section shall come into operation on such day as the Minister for Finance appoints by order.

TABLE

2.—Whenever a resolution (in this Act referred to as a resolution under this Act) is passed by Dáil Éireann resolving—

( a ) that a new tax specified in the resolution be imposed, or

( b ) that a specified permanent tax in force immediately before the end of the previous financial year be increased, reduced, or otherwise varied or be abolished, or

( c ) that a specified temporary tax in force immediately before the end of the previous financial year be renewed (whether at the same or a different rate and whether with or without modification) as from the date of its normal expiration or from an earlier date or be discontinued on a date prior to the date of its normal expiration,

and the resolution contains a declaration that it is expedient in the public interest that the resolution should have statutory effect under the provisions of this Act, the resolution shall subject to the provisions of this Act, have statutory effect as if contained in an Act of the Oireachtas.

(1) ( a ) if a resolution under this Act renewing the tax (with or without modification) is not passed by Dáil Éireann within two months after the expiration of the tax, the amount of such payment or deduction shall be repaid or made good on the expiration of such two months, and

Repeal.

86.—Each enactment mentioned in column (2) of the Second Schedule to this Act is hereby repealed as on and from the 6th day of April, 1974, to the extent specified in column (3) of that Schedule.

Care and management of taxes and duties.

87.—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.

88.—(1) This Act nay be cited as the Finance Act, 1974 .

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

(3) Part II of this Act, so far as it relates to customs, shall be construed together with the Customs Acts and the said Part II, 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 III of this Act shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(5) Part I of this Act shall, save as is otherwise expressly provided therein, be deemed to have come into force and shall take effect as on and from the 6th day of April, 1974.

(6) 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.

Section 6.

FIRST SCHEDULE

AMENDMENT OF ENACTMENTS

PART I

Amendments consequential on changes in personal reliefs

1. The Income Tax Act, 1967 , is hereby amended in accordance with the following provisions of this paragraph:

(i) In section 137, for "sections 138 to 143" there shall be substituted "sections 138 to 143, section 145, section 12 of the Finance Act, 1967 , section 3 of the Finance Act, 1969 , section 11 of the Finance Act, 1971 , and section 8 of the Finance Act, 1974 ,"; and for "assessable income" there shall be substituted "total income"

(ii) In section 138

( a ) in subsection (1), for "£494" in each place where it occurs, there shall be substituted "£800" for "£299" there shall be substituted £500 and for "£594" there shall be substituted "£900",

( b ) in subsection (2), for "£299" in each place where it occurs, there shall be substituted "£500" and for "£324" there shall be substituted "£550", and

( c ) in subsection (3) for "an amount equal to three-fourths of the amount of that earned income but not exceeding in any case £104" there than be substituted "£200, or the amount of that earned income if less".

(iii) In sections 139 and 140, for "£100" in each place where it occurs, there shall be substituted "£140".

(iv) In section 141—

( a ) the following paragraphs shall be substituted for paragraphs (a) and ( b ) of subsection (1A)—

"( a ) in the case of a child to whom paragraph (a) or ( b ) (i) of that subsection applies, £200, or

( b ) in the case of a child to whom paragraph (aa) or ( b ) (ii) of that subsection applies, £270.",

( b ) in paragraph ( c ) of subsection (1A), for "£220" in each place where it occurs, there shall be substituted "£270",

( c ) subsections (1AA) and (1AAA) shall be deleted.

( d ) in subsection (1B), the definition of "children's allowance" shall be deleted.

(v) In section 143—

( a ) for "assessable income" in each place where it occurs, there shall be substituted "total income" and

( b ) in subsection (1), "(excluding sur-tax)" shall be deleted.

(vi) In sections 146 and 149, for "sections 134 to 145" in each place where it occurs, there shall be substituted "sections 138 to 145

(vii) In section 153—

( a ) paragraphs (a), (b) and ( c ) of subsection (1) shall be deleted,

( b ) in Paragraph ( d ) of subsection (1), for "assessable income" there shall be substituted "total income" and for "sections 138 to 143" their shall the substituted "sections 138 to 143 and section 145" and after "1971" there shall be inserted and section 8 of the Finance Act, 1974 ",

( c ) the following paragraph for shall be substituted in paragraph (dd) of subsection (1)—

"(dd) he shall not be entitled to the benefit of the provision contained in section 3 (2) of the Finance Act 1974 , (whereby the first £1,550 at taxable income is chargeable at the reduced rate of tax in certain circumstances) and, accordingly, he shall be charged to tax in respect of so much of his income as does not exceed £4,350 at the standard rate of tax."

( d ) in subsection (2), for all the words from "that individual", there shall be substituted the following—

"but the amount of any such allowance, deduction, or other benefit as is mentioned in the said subsection shall, in the case of that individual, be reduced to an amount which bears the same proportion to the total amount of the said allowance, deduction, or other benefit as the portion of his income which is subject to Irish tax bears to his total income from all sources (including income which is not subject to Irish tax)."

(viii) In section 193—

( a ) in subsection (2) ( a ), after "143," there shall be inserted "145,",

( b ) paragraphs (b), (d) and ( e ) of subsection (2) shall be deleted,

( c ) in subsection (2) ( f ), for "assessable" there shall be substituted "total",

( d ) subsection (2A) shall be deleted, and

( e ) subsection (6) shall be deleted and the following subsections shall be inserted:

"(6) In this section 'personal reliefs' means relief under any of the following:

( a ) sections 138 to 145 and 151 and 152,

( b ) section 12 of the Finance Act, 1967 ,

( c ) section 3 of the Finance Act, 1969 ,

( d ) section 11 of the Finance Act, 1971 , and

( e ) section 8 of the Finance Act, 1974 .

(7) The amount of taxable income charged at any of the rates specified in section 3 of the Finance Act, 1974 , shall be in proportion to the amounts of the respective total incomes of the husband and the wife and shall not exceed the total amount of taxable income which would be charged at any of the said rates if an application under section 197 had not had edict with respect to that year.".

2. In section 3 of the Finance Act, 1969 , for "£100" there shall be substituted "£140" for "assessable" there shall be substituted "total" and for "134" there shall be substituted "138".

3. In section 11 of the Finance Act, 1971 , for "£100" there shall be substituted "£140" for "assessable" in each place where it occurs, there shall be substituted "total" and for "£200" there shall be substituted "£280".

Section 11.

PART II

Amendments consequential on enactment of the higher rates of income tax

1. The Income Tax Act, 1967 , is hereby amended ha accordance with the following provisions of this paragraph:

(i) In section 115 (1) ( b ), for "to sur-tax under section 525" there shall be substituted "under section 525 to tax at the higher rates".

(ii) In section 127—

( a ) in subsection (1) ( a ), for "the rate of income tax for the year" there shall be substituted "such rate or rates of tax for the year as may be specified".

( b ) in subsection (1) ( e ), after "rate" there shall be inserted "and at the higher rates",

( c ) subsection (1) (ff) (inserted by the Finance Act 1970 ) shall be deleted,

( d ) in subsection (3) ( a ), subparagraph (ii) shall be deleted,

( e ) in subsection (3) ( b ), "(excluding sur-tax)" shall be deleted, and

( f ) subsection (3) ( c ) shall be deleted.

(iii) In section 133 (1)—

( a ) in paragraph ( c ) "for sur-tax purposes" shall be deleted and for "to sur-tax" there shall be substituted "to tax at the higher rates" and

( b ) the following proviso shall be added:

"Provided that where any such assessment is made, credit shall be given for the amount of any tax deducted or estimated to be deductible from the said emoluments.".

(iv) In section 195—

( a ) in subsection (1), "or unpaid sur-tax" shall be deleted, and

( b ) in subsection (3) ( b ), for "whether to income tax or to sur-tax" there shall be substituted "to tax".

(v) In section 233 (2)—

( a ) in paragraph (b), for "(excluding sur-tax)" there shall be substituted "other than the purposes referred to in paragraph ( c )" and after "those contributions" there shall be inserted "and the rate of tax did not exceed the standard rate for each year",

( b ) for paragraph ( c ) there shall be substituted the following paragraph:

"(c) the contributions repaid, to the extent to which they were allowed as deductions under subsection (1), shall, where any income would have been chargeable to tax at the higher rates but for the said deductions, be treated as income, assessable to tax under Case IV of Schedule D, of the several years of assessment for which they were so allowed and any necessary additional assessments to tax may be made accordingly and in determining the amount of tax payable for each year there shall be allowed as a credit a sum equal to the additional amount of tax for that year as computed for the purposes of paragraph (b).".

(vi) In section 406 (5)

( a ) "and sur-tax" shall be deleted; and

( b ) for "liabilities to those taxes to what those liabilities" there shall be substituted "liability to that tax to what that liability".

(vii) In section 434 (1), before rate of tax "there shall be inserted "standard".

(viii) In section 435 (1), for "reduced rate", in each place where it occurs, there shall be substituted "rate less than the standard rate".

(ix) In section 451 (5) in the proviso, "for the purpose of computing his total income" shall be substituted for "for the purposes of sur-tax".

(x) In section 488—

( a ) in subsection (1), "or sur-tax" shall be deleted and "that tax" shall be substituted for "any of those taxes"; and

( b ) in subsection (5) (a), "or sur-tax" shall be deleted.

(xi) In section 497 the following provision shall be substituted for the provision before the proviso—

"Any repayment of income tax for any year of assessment to which any person may be entitled in respect of any deduction allowed under sections 138 to 145, section 12 of the Finance Act, 1967 , section 3 of the Finance Act, 1969 , section 11 of the Finance Act, 1971 , or section 8 of the Finance Act 1974 , shall, save as otherwise provided by this Act, be made at the standard rate of tax or at the higher rate or rates, as the case may be, and any repayment of tax for any year of assessment to which any person may be entitled in respect of the reduced rate shall, save as otherwise provided by this Act, be made at a rate equal to the difference between the rate at which tax was paid, whether by deduction or otherwise, and the reduced rate".

(xii) In section 525 (1), for all the words after subparagraph (c) but before the proviso, there shall be substituted—

"the said sum shall be treated for the purpose of computing the said individual's total income as received by him after deduction of tax from a corresponding gross sum, and—

(i) in any assessment to be made on the individual he shall be treated as having paid tax at the reduced rate on so much thereof as is chargeable at the reduced rate and at the standard rate on so much thereof as is chargeable at the standard and higher rates;

(ii) no repayment shall be made of tax treated by virtue of subparagraph (i) as having been paid, and

(iii) the said amount shall be treated for the purpose of sections 433 and 434 of the Act as not brought into charge to tax.".

(xiii) In section 528—

( a ) for "sur-tax", in each place where it occurs, there shall be substituted "tax":

( b ) in subsection (1) (a), after "all sources" there shall be inserted ", whether chargeable with tax by deduction or otherwise,"; and

( c ) there shall be added to subsection (1) "and shall, in computing the tax payable, estimate We amount of tax to be credited under section 133 and section 4 of the Finance Act, 1974 .".

(xiv) In section 530—

( a ) for "sur-tax", where it first occurs, there shall be substituted "tax at the higher rates" and for "sur-tax" in each other place where it occurs, there shall be substituted "tax": and

( b ) after subsection (8), there shall be inserted the following subsection:

"(9) The Revenue Commissioners may make regulations for the purpose of carrying this Section into effect.".

(xv) In section 543—

( a ) for "sur-tax", where it first occurs, there shall be substituted "tax under section 530"; and

( b ) ", or in the case of a regulation relating to surtax within the next forty days" shall be deleted.

(xvi) In Schedule 1, Part I, paragraph 1 (c), before "rate" there shall be inserted "standard".

(xvii) In Schedule 1, Part II, paragraph 1 (b) before "rate" there shall be inserted "standard".

(xviii) In Schedule 16, in paragraphs 8 and 9, for "sur-tax" in each place where it occurs, there shall be substituted "tax".

2. In section 12 (2) of the Finance Act, 1967 , for "assessable income" in both places where it occurs, there shall be substituted total income".

3. The Finance Act, 1968 , is hereby amended in accordance with the following provisions of this paragraph:

(i) In section 3—

( a ) in subsection (2),

(i) "and sur-tax", in each place where it occurs, shall be deleted.

(ii) "the aggregate of" shall be deleted,

(iii) for "amounts" in paragraph (a) there shall be substituted "amount" and

(iv) for rates respectively their shall be substituted "rate"; and

( b ) in subsection (3),

(i) "amounts of" in each place where it occurs, shall be deleted,

(ii) "and sur-tax respectively", in each place where it occurs, shall be deleted,

(iii) for "amounts referred to" there shall be substituted amount referred to", and

(iv) for "rates" there shall be substituted "rate".

(ii) In section 34 (6)—

( a ) "and sur-tax" shall be deleted; and

( b ) for "liabilities to those taxes to what those liabilities" there shall be substituted "liability to that tax to what that liability".

SECOND SCHEDULE

ENACTMENTS REPEALED

PART I

Number and Year	Short Title	Extent of Repeal
(1)	(2)	(3)
No. 7 of 1927	Provisional Collection of Taxes Act, 1927 .	In section 1, in the definition of "tax", the words "and super-tax". In section 3, the words "or super-tax" and the words "or super-tax generally".
No. 12 of 1942	Taxes and Duties (Special Circumstances) Act, 1942 .	In section 3 (1), the words "and sur-tax". In section 10 (2), the words "or sur-tax".
No. 6 of 1967	Income Tax Act, 1967 .	In section 2 (2) (c), the words "under section 134 or". In section 3, the words "or sur-tax". In section 70 (1) (c), the words "(including sur-tax)". In section 116 (1), the words (including sur-tax)". In section 117 (1), the words "(including sur-tax)". Sections 134, 135 and 136. Section 144 (3). In Section 145 (1), the definition of "total income". In section 162 (2), the words "and sur-tax". In section 172 (1) (c), the words "(including sur-tax)". In section 187 (1), the words "and sur-tax". Section 188 (2). In section 191 (2), the words "(including any consequential relief from sur-tax)". In section 191 (3), the words "or sur-tax". In section 192 (1), the words "including sur-tax". In section 194 (1) (a), the words "or sur-tax". In section 196, the words "(including sur-tax)" in each place where they occur. Section 198. In section 231 (2), the words "and sur-tax", in each place where they occur. In section 231 (3), the words "and sur-tax respectively" in each place where they occur and the words "and sur-tax" in paragraph (b). Section 236 (10). In section 288 (2), the words "(other than sur-tax)" in each place where they occur. In section 291, the words "(including sur-tax)" in each place where they occur. In section 293, the words "including sur-tax in each place where they occur. In section 329 (1) (b), the words "and sur-tax". In section 332 (1) (b), the words "and sur-tax". In section 344 (4), the definition of "total income". In section 345, the words "or sur-tax" in each place where they occur. In section 356, the words "and sur-tax" in each place where they occur. In section 361, the word ", sur-tax". In section 365, the words "or income and sur-tax" in each place where they occur. In section 365 (2), the words or sur-tax. In section 365 (4), the words ", sur-tax (if any)," and the words "and sur-tax (if any)". In section 366 (b), the words "(including sur-tax)". In section 387— (a) in subsection (3) (a), "or for the purpose of sur-tax", and (b) subsection (4) (c). Section 396 (4). Section 410 (4). Section 416 (11). In section 419, the words "or sur-tax" in each place where they occur. In section 420, the words "or sur-tax". In section 441 (1), the words "or sur-tax". In section 446 (1), the words "or sur-tax". In section 465, the words "(including sur-tax)". Section 485 (3) and (4). In section 486 (1),the words "or sur-tax". In section 489 (1), the words "or sur-tax". In section 491 (1), the words "or sur-tax". In section 492 (1), the words "or sur-tax". In section 493, the words "or sur-tax". In section 501 (1) (c), the words "or sur-tax". In section 502 (2), the words "include sur-tax, except that" and the word ", they". In section 505, the words "or sur-tax". In section 511, the words "or sur-tax". In section 521, the words 4 "or sur-tax" in each place where they occur. Sections 522, 523 and 524. Sections 526 and 527. Section 532. In section 539 (1), the words "or sur-tax". In section 547 (3), the definition of "total income". In section 549 (1), the definition of "tax". In section 550, the words "or to sur-tax" in each place where they occur. In section 551 (2), paragraph (b). In section 552 (2), the words or sur-tax in each place where they occur. In section 554 (4), the words "and sur-tax". In section 555, the words "or sur-tax". In section 556 (1) the word ",sur-tax". In section 559 (1).the word ", sur-tax". In Schedule 6, Part II, paragraph I, the words "(including sur-tax)" in each place where they occur. In Schedule 6, Part III, paragraph 3 (1), the words "or sur-tax". In Schedule 10, paragraph 1 (1), the definition of "income tax". In Schedule 10, paragraph 1 (1), the definition of "total income". In Schedule 10, paragraph 1 (1), in the definition of "the Irish taxes", the words "(including sur-tax)". In Schedule 10, paragraph 5 (1) (a), the words "but not to sur-tax". In Schedule 10, paragraph 5 (1) (b) and the proviso. In Schedule 15, column 1, the reference to section 526 (2). In Schedule 15, column 2, the reference to section 527. In Schedule 15, column 3, the reference to section 526 (3).
No. 7 of 1967	Income Tax (Amendment) Act, 1967 .	In the second paragraph of the preamble, the words "including sur-tax)".
No. 7 of 1968	Finance (Miscellaneous Provisions) Act, 1968 .	In section 3 (6), paragraphs (a), (b), (c) (i) and (c) (iv) and section 23 (4).
No. 33 of 1968	Finance Act, 1968 .	In section 6 (2) (a), the words "and sur-tax". In section 37 (6), the words "or sur-tax". In section 48 (2), the words ",including sur-tax".
No. 37 of 1968	Finance (No. 2) Act, 1968 .	In section 8, the words "including sur-tax)". In section 11 (4), the words "including sur-tax".
No. 21 of 1969	Finance Act, 1969 .	In section 63 (1), the words "(including sur-tax)". In section 67 (2), the words ",(including sur-tax)".
No. 14 of 1970	Finance Act, 1970 .	In section 19 (5), the words "(including sur-tax)". In section 62 (2), the words ",including sur-tax".
No. 23 of 1971	Finance Act, 1971	In section 20 (2), the words "or sur-tax".
No. 19 of 1972	Finance Act, 1972 .	Section 1 (1). In section 48 (2), the words ", including sur-tax".
No. 19 of 1973	Finance Act, 1973 .	In section 33 (1) (d), the word ", sur-tax". In section 33 (6), the words "including sur-tax". In section 98 (2), the words ", including sur-tax".

PART II

Number and Year

Short Title

Extent of Repeal

(1)

(2)

(3)

No. 19 of 1972

Finance Act, 1972 .

In section 13—

(a) in subsection (1), the definitions of "ordinary share capital", "proprietary director" and "proprietary employee", and

(b) subsection (3).

Irish Legislation

Finance Act, 1974