Finance Act , 1996

(b) is not a company which would fall within section 95 of the Corporation Tax Act, 1976, if the words ‘private company’ were substituted for the words ‘close company’ in subsection (1) of that section, and if the words ‘if beneficially held by a company which is not a private company’ were substituted for the words of paragraph (a) of subsection (4) of that section.”.

122 Amendment of section 19 (value of agricultural property) of Principal Act.

122.—(1) Section 19 of the Principal Act is hereby amended—

(a) by the substitution of the following definition for the definition of “agricultural value” in subsection (1) (inserted by the Finance Act, 1994):

“‘agricultural value’ means the market value of agricultural property reduced by 75 per cent. of that value:

Provided that the agricultural value of agricultural property, other than farm machinery, livestock and bloodstock, comprised in a gift shall not be greater than it would have been if section 122 of the Finance Act, 1996, had not been enacted;”,

(b) by the deletion of subsection (4) (inserted by the Finance Act, 1994), and

(c) in paragraph (a) (inserted by the Finance Act, 1994) of subsection (5)—

(i) by the substitution of “ten years” for “six years” in subparagraph (i),

(ii) by the substitution of the following proviso for the proviso to that paragraph:

“Provided that—

(I) this paragraph shall not have effect where the donee or successor dies before the property is sold or compulsorily acquired;

(II) where the event which causes the agricultural value to cease to be applicable occurs after the expiration of the period of six years commencing on the date of the gift or the date of the inheritance, the tax chargeable in respect of the gift or inheritance shall not be greater than it would have been if section 122 of the Finance Act, 1996, had not been enacted.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 23rd day of January, 1996.

123 Exemption relating to qualifying expenses of incapacitated persons.

123.—(1) The Principal Act is hereby amended by the insertion of the following section after section 59:

“59A.—(1) A gift or inheritance which is taken exclusively for the purpose of discharging qualifying expenses of an individual who is permanently incapacitated by reason of physical or mental infirmity shall, to the extent that the Commissioners are satisfied that it has been or will be applied to such purpose, be exempt from tax and shall not be taken into account in computing tax.

(2) In this section ‘qualifying expenses’ means expenses relating to medical care including the cost of maintenance in connection with such medical care.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 28th day of March, 1996.

124 Amendment of section 118 (application of section 60 (relief in respect of certain policies of insurance) of Finance Act, 1985) of Finance Act, 1991.

124.—(1) Section 118 of the Finance Act, 1991, is hereby amended by the deletion of “under a disposition made by the spouse of the insured where the inheritance is taken”.

(2) This section shall apply to inheritances taken on or after the 28th day of March, 1996.

125 Amendment of section 126 (business relief) of Finance Act, 1994.

125.—(1) Section 126 (inserted by the Finance Act, 1995) of the Finance Act, 1994, is hereby amended by the substitution of “75 per cent.” for “50 per cent.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 23rd day of January, 1996.

126 Amendment of section 127 (relevant business property) of Finance Act, 1994.

126.—(1) Section 127 of the Finance Act, 1994, is hereby amended by the substitution of the following paragraph for paragraph (c) of subsection (1):

“(c) unquoted shares in or securities of a company incorporated in the State which is, on the valuation date (after the taking of the gift or inheritance), a company controlled by the donee or successor within the meaning of section 16 of the Principal Act;”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 28th day of March, 1996.

127 Amendment of section 135 (withdrawal of relief) of Finance Act, 1994.

127.—(1) Section 135 of the Finance Act, 1994, is hereby amended—

(a) by the substitution of “ten years” for “six years” in subsection (1) (as amended by the Finance Act, 1995), and

(b) by the substitution of the following proviso for the proviso (inserted by the Finance Act, 1995) to subsection (2):

“Provided that—

(i) any land, building, machinery or plant which are comprised in the gift or inheritance and which qualify as relevant business property by virtue of section 127 (1) (e) shall, together with any similar property which has replaced such property, continue to be relevant business property for the purposes of this section for so long as they are used for the purposes of the business concerned,

(ii) this section shall not have effect where the donee or successor dies before the event which would otherwise cause the reduction to cease to be applicable,

(iii) where the event which causes the reduction to cease to be applicable occurs after the expiration of the period of six years commencing on the valuation date, then only one-third of that reduction shall cease to be applicable.”.

(2) This section shall apply to gifts or inheritances taken on or after the 23rd day of January, 1996.

128 Amendment of section 146 (certificate relating to registration of title based on possession) of Finance Act, 1994.

128.—Section 146 of the Finance Act, 1994, is hereby amended by the insertion of the following subsections after subsection (4):

“(4A) In subsection (1), the reference to a certificate issued by the Commissioners shall be construed as including a reference to a certificate to which subsection (4B) relates, and the provisions of subsection (1) shall be construed accordingly.

(4B) (a) A certificate to which this subsection relates is a certificate by the solicitor for the applicant for registration in which it is certified, on a form provided by the Commissioners, that the solicitor—

(i) is satisfied—

(I) in a case where the applicant is a statutory authority within the definition of ‘statutory authority’ contained in section 3(1) of the Act of 1964, that the market value of the relevant property at the time of the application does not exceed £100,000, or

(II) in any other case, that—

(A) the area of the relevant property does not exceed five hectares, and

(B) the market value of the relevant property at the time of the application does not exceed £15,000,

and

(ii) having investigated the title to the relevant property, has no reason to believe that the relevant particulars, in so far as relating to the relevant property at any time during the relevant period, are particulars which related at that time to significant other real property, that is to say, real property which, if combined with the relevant property for the purposes of subparagraph (i), would cause a limit which applies to the relevant property by virtue of that subparagraph to be exceeded.

(b) In this subsection—

‘the relevant particulars’ means the particulars of title to the relevant property which are required to be produced to the Registrar for the purposes of paragraph 2 of Form 5 of the Schedule of Forms referred to in the definition of ‘Forms’ contained in rule 2(1) of the Rules of 1972;

‘the relevant property’ means the property in respect of which the application for registration is being made.

(4C) Notwithstanding the provisions of subsection (4B), a certificate by the solicitor for the applicant for registration shall be a certificate to which subsection (4B) relates if it certifies, on a form provided by the Commissioners, that the solicitor is satisfied that—

(a) the area of the property in respect of which the application for registration is being made does not exceed 500 square metres,

(b) the market value of the said property at the time of the application does not exceed £2,000, and

(c) the application is not part of a series of related applications covering a single piece of property the total area of which exceeds 500 square metres or the market value of which at the time of the application exceeds £2,000.”.

129 Amendment of section 164 (payment of tax on certain assets by instalments) of Finance Act, 1995.

129.—(1) Section 164 of the Finance Act, 1995, is hereby amended—

(a) by the substitution of the following paragraph for paragraph (a) of subsection (2):

“(a) section 43 of the Principal Act shall apply to that whole or part of the tax notwithstanding subsection (3) or (4) of that section:

Provided that where all or any part of that agricultural property or relevant business property, or any property which directly or indirectly replaces such property, is sold or compulsorily acquired and, by virtue of subsection (5) of section 19 of the Principal Act or section 135 of the Finance Act, 1994, that sale or compulsory acquisition causes the taxable value of such a taxable gift or taxable inheritance to be increased, or would cause such increase if subsection (2) of section 19 of the Principal Act or section 126 of the Finance Act, 1994, applied, all unpaid instalments referable to the property sold or compulsorily acquired shall, unless the interest of the donee or successor is a limited interest, be paid on completion of that sale or compulsory acquisition and, if not so paid, shall be tax in arrear,

and”,

and

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

“(2A) For the purposes of this section reference to an overdue instalment in the proviso to paragraph (b) of subsection (2) is a reference to an instalment which is overdue for the purposes of section 43 (as it applies to this section) of the Principal Act or for the purposes of the proviso to paragraph (a) of the said subsection (2).”.

(2) This section shall apply in relation to gifts or inheritances taken on or after the 8th day of February, 1995.

PART VI Miscellaneous Pre-Consolidation Provisions

Chapter I Income Tax, Corporation Tax and Capital Gains Tax

130 Information.

130.—The Revenue Commissioners or any of their officers may, for any purpose in connection with the assessment and collection of income tax, corporation tax or capital gains tax, make use of or produce in evidence, any returns, correspondence, schedules, accounts, statements or other documents or information to which the Revenue Commissioners or any of their officers have or has had or may have lawful access for the purposes of the Acts relating to any tax, duty, levy or charge under the care and management of the Revenue Commissioners.

131 Connected persons.

131.—(1) In this section—

“close company” has the same meaning as in sections 94 and 95 of the Corporation Tax Act, 1976;

“company” has the same meaning as in section 1 (5) of the Corporation Tax Act, 1976;

“control” shall be construed in accordance with section 102 of the Corporation Tax Act, 1976;

“relative” means brother, sister, ancestor or lineal descendant:

Provided that, for the purposes of the Capital Gains Tax Acts, it shall, in addition, mean uncle, aunt, niece or nephew;

“settlement” includes any disposition, trust, covenant, agreement or arrangement, and any transfer of money or other property or of any right to money or other property;

“settlor”, in relation to a settlement, means any person by whom the settlement was made; and a person shall be deemed for the purposes of this section to have made a settlement if the person has made or entered into the settlement directly or indirectly and, in particular (but without prejudice to the generality of the preceding words), if the person has provided or undertaken to provide funds directly or indirectly for the purpose of the settlement, or has made with any other person a reciprocal arrangement for that other person to make or enter into the settlement.

(2) For the purposes of the Tax Acts and the Capital Gains Tax Acts, unless the context otherwise requires, any question whether a person is connected with another shall be determined in accordance with the provisions of subsections (3) to (8) (any provision that one person is connected with another being taken to mean that they are connected with one another).

(3) A person is connected with an individual if that person is the individual's husband or wife, or is a relative, or the husband or wife of a relative, of the individual or of the individual's husband or wife.

(4) A person, in his or her capacity as trustee of a settlement, is connected with—

(a) any individual who in relation to the settlement is a settlor,

(b) any person who is connected with such an individual, and

(c) a body corporate which is deemed to be connected with that settlement, and a body corporate shall be deemed to be connected with a settlement in any accounting period or, as the case may be, year of assessment if, at any time in that period or year, as the case may be, it is a close company (or only not a close company because it is not resident in the State) and the participators then include the trustees of or a beneficiary under the settlement.

(5) Except in relation to acquisitions or disposals of partnership assets pursuant to bona fide commercial arrangements, a person is connected with any person with whom he or she is in partnership, and with the husband or wife or a relative of any individual with whom he or she is in partnership.

(6) A company is connected with another company—

(a) if the same person has control of both, or a person has control of one and persons connected with him or her, or he or she and persons connected with him or her, have control of the other, or

(b) if a group of two or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he or she is connected.

(7) A company is connected with another person if that person has control of it or if that person and persons connected with him or her together have control of it.

(8) Any two or more persons acting together to secure or exercise control of, or to acquire a holding in, a company shall be treated in relation to that company as connected with one another and with any person acting on the direction of any of them to secure or exercise control of, or to acquire a holding in, the company.

(9) (a) All the provisions of the Tax Acts and the Capital Gains Tax Acts which, for the purpose of determining whether a person is connected with another, refer to or apply the provisions of section 16 (3) of the Finance (Miscellaneous Provisions) Act, 1968, section 33 (7) of the Capital Gains Tax Act, 1975, or section 157 of the Corporation Tax Act, 1976, as appropriate, shall, notwithstanding paragraph (b), be construed for that purpose as referring to or applying the provisions of this section.

(b) The said sections 16 (3), 33 (7) and 157 shall cease to apply and have effect.

132 Pre-consolidation amendments and repeals.

132.—(1) The enactments specified in Part I of the Fifth Schedule shall have effect subject to the amendments specified in that Schedule, being amendments designed to facilitate, or otherwise desirable in connection with, the consolidation of the Tax Acts and the Capital Gains Tax Acts.

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

(3) The amendments and repeals in each Part of the Fifth Schedule are subject to the provisions of this Act and, in particular, to the provision made at the end of each Part of that Schedule.

Chapter II Income Tax and Corporation Tax

Farming: Provisions Relating to Relief in respect of Increase in Stock Values

133 Interpretation.

133.—In this Chapter—

“accounting period”, in relation to a person, means—

(a) where the person is a company, an accounting period determined in accordance with the provisions of section 9 of the Corporation Tax Act, 1976, or

(b) where the person is not a company, a period of one year ending on the date to which the accounts of the person are usually made up:

Provided that where accounts have not been made up or where accounts have been made up for a greater or lesser period than one year, the accounting period shall be such period not exceeding one year as the Revenue Commissioners may determine;

“chargeable period” has the same meaning as in paragraph 1 of the First Schedule to the Corporation Tax Act, 1976;

“company” has the same meaning as in section 1(5) of the Corporation Tax Act, 1976;

“farming” has the same meaning as in Chapter II of Part I of the Finance Act, 1974;

“period of account”, in relation to a person, means a period for which the accounts of the person have been made up;

“person” means a person who is resident in the State and not resident elsewhere and, unless the contrary intention appears, includes a company;

“specified return date for the chargeable period” has the same meaning as in section 9 of the Finance Act, 1988;

“tax” means income tax or corporation tax, as appropriate;

“trading income”, in relation to the trade of farming, means—

(a) where the person is a company, the income from the trade computed in accordance with the rules applicable to Case I of Schedule D, or

(b) in the case of any other person, the profits or gains of the trade computed in accordance with the rules applicable to Case I of Schedule D;

“trading stock”, in relation to the trade of farming, has the same meaning as in section 62 of the Income Tax Act, 1967, and in determining the value of a person's trading stock at any time for the purposes of a deduction under section 134 to the extent that, at or before that time, any payments on account have been received by the person in respect of any trading stock, the value of that stock shall be reduced accordingly.

134 Deduction for increase in stock values.

134.—(1) Subject to the provisions of this Chapter, if—

(a) a person carries on, in an accounting period, the trade of farming in respect of which the person is within the charge to tax under Case I of Schedule D, and

(b) the value of the person's trading stock of that trade at the end of the accounting period (in this Chapter referred to as its “closing stock value”) exceeds the value of its trading stock of that trade at the beginning of the accounting period (in this Chapter referred to as its “opening stock value”),

the person shall, in the computation for the purposes of tax of its trading income, be entitled to a deduction under this section equal to 25 per cent. of the amount of that excess as if the deduction were a trading expense incurred in the accounting period, and the amount of that excess is referred to in this Chapter as the person's “increase in stock value”:

Provided that, where the person is a company, the amount of the deduction in an accounting period shall not exceed the amount of the company's trading income for that period after all reductions of income for that period by virtue of sections 16 and 18 of the Corporation Tax Act, 1976, and after all deductions and additions for that period by virtue of section 14 of that Act and before any deduction allowed by virtue of this section:

Provided also that, where the person is a company, where a deduction allowed by virtue of this section in computing the company's income from the trade of farming for an accounting period has effect for an accounting period (in this subsection referred to as “the relevant period”), the company shall not be entitled to—

(a) a deduction under section 14 of the Corporation Tax Act, 1976, for any accounting period later than the relevant period in respect of any allowance treated as a trading loss of the trade before the commencement of the relevant period, or

(b) a set-off of a loss under section 16 of the Corporation Tax Act, 1976, for any accounting period later than the relevant period in respect of a loss sustained in the trade before the commencement of the relevant period, or

(c) a set-off of a loss under section 18 of the Corporation Tax Act, 1976, for any accounting period earlier than the relevant period in respect of a loss sustained in the trade.

(2) In the case of a person other than a company, where a deduction allowed by virtue of this section in computing the person's trading profits of the trade of farming for an accounting period has effect for a year of assessment (in this subsection referred to as “the relevant year”)—

(a) the person shall not be entitled to relief—

(i) under section 309 of the Income Tax Act, 1967, for any year of assessment later than the relevant year in respect of a loss sustained in the trade before the commencement of the relevant year, or

(ii) under section 311 of the Income Tax Act, 1967, for any year of assessment earlier than the relevant year in respect of a loss sustained in the trade,

(b) the provisions of section 241 (3) of the Income Tax Act, 1967, or of that section as applied by any other provision of the Income Tax Acts, shall not apply as respects a capital allowance or part of a capital allowance which is, or is deemed to be, all or part of a capital allowance for the relevant year and to which full effect has not been given in that year owing to there being no profits or gains chargeable for that year or an insufficiency of profits or gains chargeable for that year,

(c) the provisions of section 318 of the Income Tax Act, 1967, shall not apply to the capital allowances or any part thereof for the relevant year, and

(d) the amount of any deduction given under this section shall not exceed the amount of the person's trading income from the trade of farming for the relevant year before any deduction allowed by virtue of this section.

(3) (a) A deduction shall not be allowed under the provisions of this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 1997.

(b) Any deduction allowed by virtue of this section in computing the profits or gains of the trade of farming for an accounting period of a person other than a company shall not have effect for any purpose of the Income Tax Acts for any year of assessment later than the year 1996-97.

(4) A person shall not be entitled to a deduction under this section for any chargeable period unless a written claim for such a deduction is made on or before the specified return date for the chargeable period.

(5) The provisions of this section shall apply to a trade of farming carried on by a partnership as they apply to a trade of farming carried on by a person.

135 Special provision for qualifying farmers.

135.—(1) In the case of a person other than a company who is a qualifying farmer—

(a) subsection (1) of section 134 shall apply and have effect as if “100 per cent.” were substituted for “25 per cent.”;

(b) paragraph (a) shall apply and have effect in computing a person's trading profits for an accounting period in the case of a person who becomes a qualifying farmer—

(i) on or after the 6th day of April, 1993, and before the 6th day of April, 1995, for the year of assessment 1995-96 and for each of the three immediately succeeding years of assessment, or

(ii) on or after the 6th day of April, 1995, and before the 6th day of April, 1997, for the year of assessment in which the person becomes a qualifying farmer and for each of the three immediately succeeding years of assessment.

(2) For the purposes of subsection (1), “qualifying farmer” means an individual who—

(a) in the year 1993-94 or any subsequent year of assessment, first qualifies for grant aid under the Scheme of Installation Aid for Young Farmers operated by the Department of Agriculture, Food and Forestry under Council Regulation (EEC) No. 797/85 of 12 March 1985[^*], or that Regulation as may be revised from time to time, or

(b) (i) first becomes chargeable to income tax under Case I of Schedule D in respect of profits or gains from the trade of farming for the said year 1993-94 or any subsequent year of assessment, and

(ii) has not attained the age of 35 years at the commencement of the year of assessment referred to in subparagraph (i), and

(iii) at any time in the year of assessment so referred to—

(I) is the holder of a qualification set out in the Sixth Schedule to the Finance Act, 1994, and, in the case of a qualification set out in subparagraph (c), (d), (e), (f) or (g) of paragraph 3, or in paragraph 4, of the said Schedule, is also the holder of a certificate issued by Teagasc — The Agricultural and Food Development Authority (referred to subsequently in this paragraph as “Teagasc”) certifying that such person has satisfactorily attended a course of training in farm management, the aggregate duration of which exceeded 80 hours, or

(II) (A) has satisfactorily attended full-time a course at a third-level institution in any discipline for a period of not less than 2 years' duration, and

(B) is the holder of a certificate issued by Teagasc certifying satisfactory attendance at a course of training in either or both agriculture and horticulture, the aggregate duration of which exceeded 180 hours,

or

(III) if born before the 1st day of January, 1968, that such person is the holder of a certificate issued by Teagasc certifying that such person has satisfactorily attended a course of training in either or both agriculture and horticulture, the aggregate duration of which exceeded 180 hours:

Provided that where Teagasc certifies that any other qualification corresponds to a qualification which is set out in the said Sixth Schedule, that other qualification shall, for the purposes of this subsection, be treated as if it were the corresponding qualification so set out.

136 Compulsory disposals of livestock.

136.—(1) In this section—

“excess” means the excess of the relevant amount over the value of the stock to which this section applies at the beginning of the accounting period in which the disposal takes place;

“relevant amount” means the amount of any income received by a person as a result, or in consequence, of a disposal of stock to which this section applies;

“stock to which this section applies” means all cattle forming part of the trading stock of the trade of farming where such cattle are compulsorily disposed of on or after the 6th day of April, 1993, under any statute relating to the eradication or control of diseases in livestock:

Provided that, for the purposes of this section, all cattle shall be regarded as compulsorily disposed of where, in the case of any disease eradication scheme relating to the eradication or control of brucellosis in livestock, all eligible cattle for the purposes of any such scheme, together with such other cattle as are required to be disposed of, are disposed of.

(2) Where stock to which this section applies is disposed of in an accounting period by a person carrying on the trade of farming, the person may elect to have the excess treated in accordance with the following provisions of this section and such election shall be made in such form and contain such information as the Revenue Commissioners may require.

(3) Notwithstanding any other provision of the Tax Acts, where a person elects in accordance with the provisions of subsection (2), the excess shall be disregarded as respects the accounting period in which it arises and shall instead be treated for the purposes of the said Acts as arising in equal instalments in each of the two immediately succeeding accounting periods:

Provided that, notwithstanding the foregoing provisions of this subsection, where the person further elects, the excess shall be treated as arising in such equal instalments in the accounting period in which it arises and in the immediately succeeding accounting period.

(4) Where, not later than the end of the succeeding accounting period or succeeding accounting periods, as appropriate, referred to in subsection (3), the person incurs expenditure on the replacement of cattle in an amount not less than the relevant amount, the person shall be deemed to be entitled to a deduction, in respect of the amount of the excess, under section 134, that section being applied as if “100 per cent.” were substituted for “25 per cent.”:

Provided that, where the expenditure incurred on replacement as aforesaid is less than the relevant amount, the deduction in each of the two accounting periods referred to in subsection (3), or in the proviso thereto, under the said section 134 shall be reduced to an amount that bears the same proportion to the excess as the expenditure incurred in the said two accounting periods bears to the relevant amount.

(5) An election under this section shall be made by notice in writing made on or before the specified return date for the chargeable period in which the stock to which this section applies is compulsorily disposed of.

137 Supplementary provisions.

137.—(1) (a) Where a person has acquired or disposed of trading stock otherwise than in the normal conduct of the trade of farming, the person shall be treated, for the purposes of this Chapter, as having, at the beginning or end of the relevant period of account, trading stock of such value as appears to the inspector (or, on appeal, to the Appeal Commissioners) to be reasonable and just having regard to all the circumstances of the case.

(b) Where the value of a person's trading stock at the beginning of a period of account is not calculated on the basis used for the calculation of the value of the trading stock at the end of that period, the value of the trading stock at the beginning of that period shall, for the purposes of this Chapter, be treated as being what it would have been if it had been calculated on that basis.

(2) (a) In any case where a person's accounting period does not coincide with a period of account or with two or more consecutive periods of account, the person's increase in stock value in the accounting period shall be determined for the purposes of section 134 not in accordance with subsection (1) of that section but by reference to a period (in this section referred to as “the reference period”) determined in accordance with this subsection.

(b) In any case where the beginning of a person's accounting period does not coincide with the beginning of a period of account, the reference period shall begin at the beginning of the period of account which is current at the beginning of the person's accounting period.

(c) In any case where the end of the person's accounting period does not coincide with the end of a period of account, the reference period shall end at the end of the period of account which is current at the end of the person's accounting period.

(d) In any case where paragraph (b) does not apply, the reference period shall begin at the beginning of the person's accounting period and, in any case where paragraph (c) does not apply, the reference period shall end at the end of the person's accounting period.

(3) (a) In any case where subsection (2) (a) applies, a person's increase in stock value in the accounting period shall be determined for the purposes of section 134 by the formula

A (C O)
__
N

where—

A is the number of months in the person's accounting period;

C is the value of the person's trading stock at the end of the reference period;

O is the value of the person's trading stock at the beginning of the reference period; and

N is the number of months in the reference period.

(b) In any case where a person's increase in stock value in an accounting period falls to be determined in accordance with paragraph (a), then, in section 134 and in the following provisions of this section, any reference to the person's closing stock value shall be construed as a reference to the value of the person's trading stock at the end of the reference period.

(4) (a) A person shall not be entitled to a deduction under section 134 for an accounting period if that accounting period ends by virtue of the person—

(i) ceasing to carry on the trade of farming; or

(ii) ceasing to be resident in the State; or

(iii) ceasing to be within the charge to tax under Case I of Schedule D in respect of that trade.

(b) In any case where a person's increase in stock value in an accounting period falls to be determined in accordance with subsection (3) (a), paragraph (a) shall have effect as if the reference therein to the person's accounting period were a reference to any of the accounting periods comprised in the person's reference period.

(5) (a) Subject to the following provisions of this subsection, where a person claims a deduction under section 134 and, immediately before the beginning of an accounting period, the person was not carrying on the trade to which the claim relates, then, unless—

(i) the person acquired the initial trading stock of that trade on a sale or transfer from another person on that person's ceasing to carry on that trade, and

(ii) the stock so acquired is, or is included in, the person's trading stock as valued at the beginning of the accounting period,

the person shall be treated for the purposes of section 134 and the preceding provisions of this section as having at the beginning of the accounting period trading stock of such value as appears to the inspector to be reasonable and just.

(b) In determining, for the purposes specified in paragraph (a), the value of trading stock to be attributed to a person at the beginning of the accounting period, the inspector shall have regard to all the relevant circumstances of the case and, in particular—

(i) to movements during the person's accounting period in the costs of items of a kind comprised in the person's trading stock during that period; and

(ii) to changes during that period in the volume of the trade in question carried on by the person.

(c) The Appeal Commissioners dealing with an appeal from the decision of an inspector on a claim in a case where, in accordance with paragraph (a), the inspector has attributed to a person at the beginning of an accounting period trading stock of a particular value shall, in hearing and determining the appeal, in so far as it relates to the value of the trading stock to be so attributed, determine such value as appears to them to be reasonable and just, having regard to those factors to which the inspector is required to have regard by virtue of paragraph (b).

(d) In any case where subsection (2) (a) applies to a person's accounting period, for any reference in paragraphs (a) to (c) to that accounting period there shall be substituted a reference to the reference period.

(6) In any case where a person's accounting period or reference period consists of a number of complete months and a fraction of a month, any reference in the preceding provisions of this section to the number of months in the period shall be construed as including that fraction of a month (and in any case where any such period is less than one month any such reference shall be construed as a reference to that fraction of a month of which the period consists).

PART VII Miscellaneous

138 Capital Services Redemption Account.

138.—(1) In this section—

“the 1995 amending section” means section 171 of the Finance Act, 1995;

“capital services” has the same meaning as it has in the principal section;

“the forty-sixth additional annuity” means the sum charged on the Central Fund under subsection (4);

“the principal section” means section 22 of the Finance Act, 1950.

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1996, subsection (4) of the 1995 amending section shall have effect with the substitution of “£75,535,862” for “£74,427,949”.

(3) Subsection (6) of the 1995 amending section shall have effect with the substitution of “£57,148,703” for “£57,207,000”.

(4) A sum of £83,599,421 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of December, 1996.

(5) The forty-sixth additional annuity shall be paid into the Capital Services Redemption Account in such manner and at such times in the relevant financial year as the Minister for Finance may determine.

(6) Any amount of the forty-sixth additional annuity, not exceeding £64,256,400 in any financial year, may be applied towards defraying the interest on the public debt.

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

139 Amendment of section 176 (relief for donations of heritage items) of Finance Act, 1995.

139.—As respects each year (being the calendar year 1996 and subsequent calendar years) section 176 of the Finance Act, 1995, is hereby amended, in subsection (2), by the substitution in subparagraph (ii) of paragraph (c) of “£750,000” for “£500,000”, and the said subparagraph (ii), as so amended, is set out in the Table to this section.

TABLE

(ii) exceeds an amount (which shall not be less than £75,000) determined by the formula—

£750,000 — M

where M is an amount (which may be nil) equal to the market value at the valuation date of the heritage item (if any) or the aggregate of the market values at the respective valuation dates of all the heritage items (if any), as the case may be, in respect of which a determination or determinations, as the case may be, under this subsection has been made by the selection committee in any one calendar year and not revoked in that year.

140 Payment of certain expenses of licensing authorities in respect of collection of certain excise duties.

140.—(1) In respect of the specified duties collected by any licensing authority, that authority may, before payment into the Exchequer of such duties, deduct from moneys so collected, an amount calculated in accordance with directions in writing issued by the Minister for the Environment, with the consent of the Minister for Finance, in respect of expenses properly incurred by the licensing authority solely in respect of the collection of such duties.

(2) The expenses referred to in subsection (1) may include expenses properly incurred by the licensing authority solely in respect of the collection of the specified duties during any period prior to the 1st day of January, 1996, and which have not been met by payments under subsection (2) (a) of section 50 of the Finance Act, 1978.

(3) (a) (i) Subsection (4) of section 1 of the Roads Act, 1920, is hereby amended by the insertion after “shall” in “shall be paid into the Exchequer” of “, subject to section 140 of the Finance Act, 1996,”.

(ii) Article 6 (1) of the Road Vehicles (Registration and Licensing) Order, 1958 (S.I. No. 15 of 1958), is hereby amended by the insertion after “shall” in “Every licensing authority shall forthwith pay the proceeds of the said duties and all other sums received by them which are payable into the Exchequer under the Roads Act, 1920,” of “, subject to section 140 of the Finance Act, 1996,”.

(b) Subsection (2) of section 4 of the Act of 1952 is hereby amended by the insertion after “shall” in “shall be paid by that authority into the Exchequer” of “, subject to section 140 of the Finance Act, 1996,”.

(4) Subsection (2) (a) of section 50 of the Finance Act, 1978, shall not apply in the case of expenses—

(a) incurred by a licensing authority in respect of the collection of the specified duties, and

(b) which have been deducted in accordance with this section.

(5) In this section—

“the Act of 1952” means the Finance (Excise Duties) (Vehicles) Act, 1952;

“licensing authority” means the council of a county, or the corporation of a county borough, which grants licences under section 1 of the Act of 1952 or driving licences or provisional licences under Part III of the Road Traffic Act, 1961;

“the specified duties” means the duties imposed—

(a) by section 1 (1) of the Roads Act, 1920, as applied by section 3 (1) of the Act of 1952 and as chargeable, leviable and payable in accordance with section 1 (1) of the Act of 1952, or

(b) by section 4 (1A) (inserted by the Finance Act, 1961, and amended by the Finance Act, 1989) of the Act of 1952 and as chargeable, leviable and payable in accordance with that section.

(6) This section shall be deemed to have come into operation on the 1st day of January, 1996, but without prejudice to payments (if any) before the passing of this Act under subsection (2) (a) of section 50 of the Finance Act, 1978.

141 Amendment of section 4 (casual trading licences) of Casual Trading Act, 1995.

141.—Section 4 of the Casual Trading Act, 1995, is hereby amended by the insertion of the following subsection after subsection (2):

“(2A) (a) For the purposes of the assessment, charge, collection and recovery of any tax or duty placed under the care and management of the Revenue Commissioners—

(i) a casual trading licence shall not be granted unless the application for a casual trading licence contains the applicant's tax reference number, and

(ii) the local authority concerned shall, upon the grant of a casual trading licence, or as soon as may be thereafter, notify the Revenue Commissioners in writing of the name, address and tax reference number of the person to whom the licence was granted and the conditions (if any) contained in the licence including the duration thereof.

(b) In this subsection, ‘tax reference number’, in relation to an applicant for a casual trading licence, means—

(i) in the case of an applicant who is an individual, the identifying number, known as the Revenue and Social Insurance (RSI) Number, and

(ii) in the case of any other applicant, the identifying or reference number,

stated on any correspondence, including a notice of determination of tax-free allowances, return of income or return of profits form or notice of assessment issued to the applicant by an inspector of taxes appointed under section 161 of the Income Tax Act, 1967.”.

142 Care and management of taxes and duties.

142.—All taxes and duties (except the excise duties on mechanically propelled vehicles imposed by section 86) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

143 Short title, construction and commencement.

143.—(1) This Act may be cited as the Finance Act, 1996.

(2) Parts I and VI (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(3) Part II (so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties.

(4) Part III shall be construed together with the Value-Added Tax Acts, 1972 to 1995, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1996.

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

(6) Part V (so far as relating to capital acquisitions tax) shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act.

(7) Part VII (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts and (so far as relating to capital acquisitions tax) shall be construed together with the Capital Acquisitions Tax Act, 1976.

(8) Parts I and VI 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, 1996.

(9) In relation to Part II, section 77 shall come into operation on the 1st day of July, 1996.

(10) In relation to Part III:

(a) section 87, paragraph (a) of section 88, subparagraphs (ii) and (iii) of paragraph (a) of section 89, section 90, paragraph (b) of section 92, sections 95 and 96, paragraphs (b) and (c) of section 98 and section 99 shall be deemed to have come into force and shall take effect as on and from the 1st day of January, 1996;

(b) paragraph (a) of section 92 and section 94 shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1996;

(c) paragraph (a) of section 93 and section 97 shall take effect as on and from the 1st day of July, 1996;

(d) the provisions of this Part, other than those specified in paragraphs (a), (b) and (c), shall have effect as on and from the date of passing of this Act.

(11) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment including this Act.

(12) In this Act, a reference to a Part, section or Schedule is to a Part or section of, or Schedule to, this Act, unless it is indicated that reference to some other enactment is intended.

(13) In this Act, a reference to a subsection, paragraph, subparagraph, clause or subclause is to the subsection, paragraph, subparagraph, clause or subclause of the provision (including a Schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.

FIRST SCHEDULE Amendments Consequential on Changes in Personal Reliefs

(a) in section 138 (inserted by the Finance Act, 1980)—

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

“(a) in a case in which the claimant is a married person—

(i) who is assessed to tax for the year of assessment in accordance with the provisions of section 194, or

(ii) who proves that his or her spouse is not living with him or her but that the spouse is wholly or mainly maintained by him or her for the year of assessment and that he or she is not entitled, in computing his or her income for tax purposes for that year, to make any deduction in respect of the sums paid by him or her for the maintenance of his or her spouse,

a deduction of £5,300,”,

(ii) in paragraph (b) (as amended by the Finance Act, 1988), by the substitution of “£3,150” and “£5,300”, respectively, for “£3,000” and “£5,000” (inserted by the Finance Act, 1995), and

(iii) in paragraph (c), by the substitution of “£2,650” for “£2,500” (inserted by the Finance Act, 1995),

and

(b) in subsection (2) of section 138A (inserted by the Finance Act, 1985), by the substitution of “£2,150” and “£2,650”, respectively, for “£2,000” and “£2,500” (inserted by the Finance Act, 1995), and

(c) in subsection (1) (including the proviso thereto) of section 141 (inserted by the Finance Act, 1986), by the substitution of “£700” for “£600” in each place where it occurs.

SECOND SCHEDULE Rates of Excise Duty on Spirits

Description of Spirits	Rate of Duty
Spirits not mentioned hereinafter	£21.75 per litre of alcohol in the spirits
Spirits of an actual alcoholic strength by volume not exceeding 5.5 vol.	£15.65 per litre of alcohol in the spirits

THIRD SCHEDULE Rates of Excise Duty on Tobacco Products

Description of Product	Rate of Duty
Cigarettes	£60.34 per thousand together with an amount equal to 16.93 per cent. of the price at which the cigarettes are sold by retail
Cigars	£91.540 per kilogram
Fine-cut tobacco for the rolling of cigarettes	£77.246 per kilogram
Other smoking tobacco	£63.507 per kilogram

FOURTH SCHEDULE Stamp Duty Enactments Repealed

Session and Chapter or Number and Year	Short Title	Extent of Repeal
(1)	(2)	(3)
54 & 55 Vict., c. 39.	Stamp Act, 1891.	Sections 46, 101 and 110.
		In section 122 (1) in the Table to the definition of “accountable person” (inserted by the Finance Act, 1991) the words “BOND, COVENANT or INSTRUMENT of any kind whatsoever.” in column (1) and the words “The obligee, covenantee, or other person taking the security.” in column (2).
		In the First Schedule (inserted by the Finance Act, 1970) the reference to “instruments relating to, upon any other occasion. See BOND, COVENANT, &c.” in the Heading “ANNUITY”, the Heading “COVENANT in relation to any annuity (except upon the original creation and sale thereof) or to other periodical payments.” together with the reference “See BOND, COVENANT, &c.” thereto and the Heading “SUPERANNUATION ANNUITY.” together with the reference “See BOND, COVENANT, &c.” thereto.
62 & 63 Vict., c. 9.	Finance Act, 1899.	Section 7.
10 & 11 Geo. 5., c. 18.	Finance Act, 1920.	Section 39.
No. 35 of 1926.	Finance Act, 1926.	Section 37.
No. 20 of 1930.	Finance Act, 1930.	Section 15.
No. 14 of 1941.	Finance Act, 1941.	Sections 47 and 48.
No. 15 of 1947.	Finance Act, 1947.	Section 19.
No. 7 of 1968.	Finance (Miscellaneous Provisions) Act, 1968.	Section 11.
No. 14 of 1970.	Finance Act, 1970.	Section 48.
No. 19 of 1972.	Finance Act, 1972.	Section 34.

FIFTH SCHEDULE

PART I Pre-Consolidation Amendments

The Income Tax Act, 1967

(No. 6 of 1967)

(1) In section 2, for subsection (2) there shall be substituted the following:

“(2) Without prejudice to the generality of subsection (1) in this Act, save so far as otherwise expressly provided, ‘earned income’ includes—

(a) any annuity made payable to an individual by the terms of an annuity contract or trust scheme for the time being approved by the Revenue Commissioners for the purposes of Chapter III of Part XII, to the extent to which such annuity is payable in return for any amount on which relief is given under section 236; and

(b) any payment or other sum which is, or is deemed to be, income chargeable to tax under Schedule E for any purpose of the Income Tax Acts.”.

(2) In section 79—

(a) in subsection (1), after “The nature of the profits or gains” there shall be inserted “chargeable to income tax under Case IV of Schedule D”, and

(b) in subsection (2), for “The computation shall be made,” there shall be substituted “Income tax under Case IV of Schedule D shall be computed”.

(3) For section 137 there shall be substituted the following:

“137.—(1) An individual who, in the manner prescribed by this Act, makes a claim in that behalf and who makes a return in the prescribed form of the individual's total income shall be entitled—

(a) for the purpose of ascertaining the amount of the income on which he or she is to be charged to income tax (in this Act referred to as ‘the taxable income’) to have such deductions as are specified in the provisions referred to in Part I of the Table to this section, but subject to those provisions, made from the individual's total income, and

(b) to have such reductions as are specified in the provisions referred to in Part II of the said Table, but subject to those provisions, made from the income tax to be charged on the individual.

(2) The provisions of Schedule 4 and of paragraph IX of Schedule 18 shall apply for the purpose of claims for—

(a) any such deductions from total income as are specified in the provisions referred to in Part I of the Table to this section, and

(b) any such reductions in tax as are specified in the provisions referred to in Part II of the Table to this section.

TABLE

PART I

Section 138

Section 138A

Section 138B

Section 141

Section 142

Section 142A (2)

Section 12 of the Finance Act, 1967

Section 3 of the Finance Act, 1969

Section 11 of the Finance Act, 1971

Section 8 of the Finance Act, 1974

Section 8 of the Finance Act, 1979

Section 12 of the Finance Act, 1984

Section 12 of the Finance Act, 1986

Section 44 of the Finance Act, 1986

Section 35 of the Finance Act, 1987

Section 4 of the Finance Act, 1989

Section 4 of the Finance Act, 1991

Section 46 of the Finance Act, 1994

Section 69 of the Finance Act, 1996

PART II

Section 142A (2A)

Section 145

Section 6 of the Finance Act, 1995

Section 7 of the Finance Act, 1995

Section 5 of the Finance Act, 1996”.

(4) In section 145 (2), for all the words from “then—” to the end of subsection (3) there shall be substituted the following:

“then, the income tax to be charged on the individual, if the individual made the payment, or on the individual's spouse, if the individual's spouse made the payment, for the year of assessment, other than in accordance with section 5 (3) of the Finance Act, 1974, shall be reduced by an amount which is the lesser of—

(a) (i) where the payment covers no benefits other than such reimbursement or discharge, an amount equal to the appropriate percentage of the full amount of the payment, or

(ii) where the payment covers benefits other than such reimbursement or discharge, an amount equal to the appropriate percentage of so much of the payment as is referable to such reimbursement or discharge,

and

(b) the amount which reduces that income tax to nil.

(2A) In subsection (2) ‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year.

(3) Where the income tax reduction of one of the spouses is ascertained in accordance with subsection (2), then—

(a) if there is no income tax to be charged on the spouse for the year of assessment, other than in accordance with section 5 (3) of the Finance Act, 1974, in relation to which relief under the said subsection can be given, the relief may be given in relation to income tax to be charged on the other spouse for that year, other than in accordance with the said section 5 (3), and

(b) if the amount ascertained as aforesaid exceeds the income tax to be charged on the spouse for the year of assessment, other than in accordance with the said section 5 (3), the excess may be used to reduce the income tax to be charged on the other spouse for that year, other than in accordance with the said section 5 (3).”.

(5) In section 146, for “sections 138 to 145” there shall be substituted “the sections specified in the Table to section 137”.

(6) In section 149, for “under sections 138 to 145” there shall be substituted “or relief under the sections specified in the Table to section 137”.

(7) In section 153, for subsection (1) there shall be substituted the following:

“(1) Save as is otherwise provided by this section, an individual who is not resident in the State shall not be entitled to any of the allowances, deductions, reliefs or reductions under the provisions specified in the Table to section 137.”.

(8) In section 195A, for subsection (6) there shall be substituted the following:

“(6) (a) The provisions of sections 146, 149 and 497 shall apply to a repayment of tax under this section as they apply to any allowance, deduction, relief or reduction under the provisions specified in the Table to section 137.

(b) The provisions of Schedule 4 and of paragraph IX of Schedule 18 shall, with any necessary modifications, apply in relation to a repayment of tax under this section.”.

(9) In section 235 (7) (b) after “him,” there shall be inserted “or”.

(10) In section 239 (8) (b), for “the references to sections 143, 151 or 236” there shall be substituted “the reference to section 236”.

(11) In section 239 (9), for “sections 143, 151 and 236” there shall be substituted “section 236”.

(12) In section 241—

(a) for subsection (1) (including the provisos thereto) there shall be substituted, as respects chargeable periods ending on or after the 6th day of April, 1996, the following:

“(1) Subject to the provisions of this Act, where a person carrying on a trade in any chargeable period has incurred capital expenditure on the provision of machinery or plant for the purposes of the trade—

(a) an allowance shall be made to him for that chargeable period on account of the wear and tear of any of the machinery or plant which belongs to him and is in use for the purposes of the trade at the end of that chargeable period or its basis period and which, while used for the purposes of the trade, is wholly and exclusively so used,

(b) the amount of the allowance shall, subject to subsection (6), be equal to—

(i) in the case of machinery or plant, other than machinery or plant of the type referred to in subparagraph (ii), 15 per cent. of the capital expenditure incurred as aforesaid, or

(ii) in the case of machinery or plant which consists of a vehicle suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles, 20 per cent. of the value of such machinery or plant at the commencement of the chargeable period and, for the purposes of this subparagraph, such value shall be taken to be the actual cost to that person of such machinery or plant reduced by the total of any allowances made to the person under this section for previous chargeable periods in respect of that machinery or plant, and

(c) the allowance shall be made in taxing the trade:

Provided that where a chargeable period or its basis period consists of a period which is less than one year in length the allowance to be made under this section shall not exceed such portion of the amount specified in paragraph (b) as bears to that amount the same proportion as the length of the chargeable period or its basis period bears to a period of one year.

(1A) Where, in the case of machinery or plant of the type referred to in paragraph (b)(i) of subsection (1) which was provided for use before the 1st day of April, 1992, that subsection shall apply as if the reference therein to capital expenditure incurred were a reference to such expenditure reduced by the total amount of—

(a) any allowances made to the person concerned under this section on account of the wear and tear of that machinery or plant, and

(b) any initial allowance made to that person under Chapter I of Part XV in respect of the expenditure incurred by that person on the machinery or plant,

for any chargeable period ending on or before the 5th day of April, 1996.”, and

(b) after subsection (9), there shall be inserted the following:

“(9A) for the purposes of this section—

(a) capital expenditure shall not include any expenditure which is allowed to be deducted in computing, for the purposes of tax, the profits or gains of a trade carried on by the person incurring the expenditure, and

(b) the day on which any expenditure is incurred shall be the day on which the sum in question becomes payable:

Provided that this paragraph shall apply only in respect of machinery or plant that is provided for use for the purposes of a trade on or after the 6th day of April, 1996.”.

(13) In section 297—

(a) in subsection (1), for “In this Part, as it applies” there shall be substituted “In this Part and in Parts XIII to XV, as they apply”,

(b) after subsection (3), there shall be inserted the following:

“(3A) Any reference in the proviso to subsection (2) to the permanent discontinuance of a trade shall be construed as including a reference to the occurring of any event which, under any of the provisions of this Act, is to be treated as equivalent to the permanent discontinuance of a trade.”,

(c) in subsection (4), after “under Chapter II of this Part” there shall be inserted “, or under Part XIII or Chapter I of Part XV,”, and

(d) in subsection (5), after “under this Part,” there shall be inserted “or under Part XIII or XV,”.

(14) In section 298, for subsection (4) there shall be substituted the following:

“(4) The preceding provisions of this section shall, with the necessary adaptations, have effect in relation to the provisions mentioned in the Table to this subsection as if those latter provisions were provisions of this Part.

TABLE

Section 241

Section 241A

Chapters I and II of Part XIV

Part XV

Finance (Taxation of Profits of Certain Mines) Act, 1974”.

(15) In section 299 (1), for paragraph (b) there shall be substituted the following:

“(b) it appears with respect to the sale or with respect to transactions of which the sale is one, that the sole or main benefit which, apart from the provisions of this section, might have been expected to accrue to the parties or any of them was the obtaining of an allowance under section 241 or 241A, under Chapter I or II of Part XIV, under Part XV, under the Finance (Taxation of Profits of Certain Mines) Act, 1974, or under any of the provisions of this Part.”.

(16) In section 312 (2), for “for the purposes of subsection (1) (a) (c)” there shall be substituted “for the purposes of paragraphs (a) and (c) of subsection (1)”.

(17) In section 316, for subsection (2) there shall be substituted the following:

“(2) This section shall not apply to any sum assessed under section 434 by virtue of section 288, or section 25 (1) of the Finance Act, 1969, or section 31 (2) of the Finance Act, 1974.”.

(18) For section 321 there shall be substituted the following:

“Relief affected by subsequent changes of law, etc.

321.—(1) If relief given to a person by virtue of section 318 (1) for any year of claim is affected by a subsequent alteration of the law, or by any discontinuance of the trade or other event occurring after the end of the year, any necessary adjustment may be made, and so much of any repayment of tax as exceeded the amount repayable in the events that happened shall, if not otherwise made good, be recovered from the person by assessment under Case IV of Schedule D.

(2) For the purpose of such assessment as is mentioned in subsection (1), the amount of capital allowances by reference to which the repayment was made, or an appropriate part of that amount, shall be deemed to be income chargeable under the said Case IV for the year of claim and shall be included in the return of income which the person is required to make under the provisions of this Act for that year.”.

(19) In section 433 (1)—

(a) for “any yearly interest of money, annuity, or other annual payment” there shall be substituted “any annuity, or any other annual payment apart from yearly interest of money”, and

(b) for “the person liable to the interest, annuity, or annual payment” there shall be substituted “the person liable to the annuity or annual payment”.

(20) In section 434 (1), for “any interest of money, annuity, or other annual payment” there shall be substituted “any annuity, or other annual payment (apart from yearly interest of money)”.

(21) In section 468 (2), for “433, 434 or 456” there shall be substituted “433 or 434”.

(22) In section 471(2), for “433, 434 or 456” there shall be substituted “433 or 434”.

(23) In section 497, for the words from the commencement of the section to the end of the first proviso there shall be substituted the following:

“Any repayment of income tax for any year of assessment to which any person may be entitled in respect of any allowance, deduction, relief or reduction under the provisions specified in the Table to section 137 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:

Provided that, in the case of any person who proves as regards any year that, by reason of the allowances, deductions or reliefs to which he is entitled, he has no taxable income for that year, any repayment to be made shall be a repayment of the whole amount of the tax paid by him, whether by deduction or otherwise, in respect of his income for that year:”.

The Finance Act, 1967

(No. 17 of 1967)

“Provided that, as respects chargeable periods ending on or after the 6th day of April, 1999, no allowance made under the said section 241 for wear and tear of any qualifying machinery or plant provided for use before the said 1st day of April, 1992, shall be increased under this section.”.

The Finance Act, 1968

(No. 33 of 1968)

“(6) Section 508 of the Income Tax Act, 1967, is hereby amended by the insertion in subsection (1) after ‘240 or 296’ of ‘or section 6 of the Finance Act, 1968’.”.

The Finance Act, 1969

(No. 21 of 1969)

“(1) In this section—

‘farm land’ means land in the State wholly or mainly occupied for the purposes of husbandry, other than market garden land within the meaning of section 54 of the Income Tax Act, 1967;

‘occupation’ has the same meaning as in section 18.”.

The Finance Act, 1971

(No. 23 of 1971)

“Provided that, as respects chargeable periods ending on or after the 6th day of April, 1999, no allowance made under the said section 241 for wear and tear of any qualifying machinery or plant provided for use before the said 1st day of April, 1992, shall be increased under this section.”.

The Finance Act, 1972

(No. 19 of 1972)

“1. This Part applies to any payment to or for the benefit of an employee, otherwise than in course of payment of a pension, being a payment made out of funds which are or have been held for the purposes of a scheme which is or has at any time been approved for the purposes of Chapter II.

(a) is not expressly authorised by the rules of the scheme, or

(b) is made at a time when the scheme is not approved for the purposes of Chapter II and would not have been expressly authorised by the rules of the scheme when it was last so approved,

the employee (whether or not he is the recipient of the payment) shall be chargeable to tax on the amount of the payment under Schedule E for the year of assessment in which the payment is made.”.

The Finance Act, 1973

(No. 19 of 1973)

“(i) is not connected (within the meaning of section 131 of the Finance Act, 1996, as it applies for the purposes of the Capital Gains Tax Acts) with the person who is the beneficial recipient of the royalty or other sum, and”.

The Finance (Taxation of Profits of Certain Mines) Act, 1974

(No. 17 of 1974)

In section 1—

(1) in subsection (1), for the definition of “scheduled minerals” there shall be substituted the following:

“‘scheduled minerals’ means minerals specified in the Table to this section occurring in non-bedded deposits of such minerals;”,

(2) after subsection (5), there shall be inserted the following:

“(6) The Minister for Finance may by regulation add minerals occurring in non-bedded deposits of such minerals to the Table to this section.

(7) Every regulation made under subsection (6) of this section shall be laid before Dáil Éireann as soon as may be after it is made and if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

TABLE

SCHEDULED MINERALS

Barytes

Felspar

Serpentinous marble

Quartz rock

Soapstone

Ores of copper

Ores of gold

Ores of iron

Ores of lead

Ores of manganese

Ores of molybdenum

Ores of silver

Ores of sulphur

Ores of zinc”.

The Finance Act, 1974

(No. 27 of 1974)

“(3) Where, for the year 1973-74 or any earlier year of assessment, 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, so much of any such deficiency as is attributable to the allowance of the deduction aforesaid 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.”.

The Corporation Tax Act, 1976

(No. 7 of 1976)

(1) In section 6, for subsection (5) there shall be substituted the following:

“(5) Corporation tax shall be under the care and management of the Revenue Commissioners and subsections (2), (3), (4) and (5) of section 155 of the Income Tax Act, 1967, shall, subject to any necessary modifications, apply to corporation tax.”.

(2) In section 50 (1), before “46A” there shall be inserted “33A,”.

(3) In section 50 (4), for paragraph (c) there shall be substituted the following:

“(c) any contract with the trustees or other persons having the management of a scheme approved under section 235 or 235A of the Income Tax Act, 1967, or under both of those sections, being a contract which—

(i) was entered into for the purposes only of that scheme, and

(ii) (in the case of a contract entered into or varied on or after the 6th day of April, 1958) is so framed that the liabilities undertaken by the assurance company under the contract correspond with liabilities against which the contract is intended to secure the scheme,”.

(4) In section 102 (1), after “For the purposes of this Part” there shall be inserted “and section 162”.

(5) In section 147 (2), before “521” there shall be inserted “520,”.

The Finance Act, 1978

(No. 21 of 1978)

“Provided that, as respects chargeable periods ending on or after the 6th day of April, 1999, no allowance made under the said section 264 in respect of qualifying expenditure incurred before the said 1st day of April, 1992, shall be increased under this section.”.

The Finance Act, 1980

(No. 14 of 1980)

“(4) (a) The provisions of sections 146, 149 and 497 of the Income Tax Act, 1967, shall apply in relation to exemption from or any reduction of tax under this section or under section 1 as they apply in relation to any allowance, deduction, relief or reduction under the provisions specified in the Table to section 137 of that Act.

(b) The provisions of Schedule 4 to the Income Tax Act, 1967, and of paragraph IX of Schedule 18 to that Act shall, with any necessary modifications, apply in relation to exemption from or any reduction of tax under this section or under section 1.”.

The Finance Act, 1983

(No. 15 of 1983)

(1) In section 3, for paragraph (a) of subsection (4), there shall be substituted the following:

“(a) The provisions of sections 146 and 149 of the Income Tax Act, 1967, shall apply to a deduction under subsection (2)(c) as they apply to any allowance, deduction, relief or reduction under the provisions specified in the Table to section 137 of that Act.”.

(2) In section 94 (2), after paragraph (e), there shall be inserted the following:

“(ee) knowingly or wilfully, and within the time limits specified for their retention, destroys, defaces, or conceals from an authorised officer—

(i) any documents, or

(ii) any other written or printed material in any form, including any information stored, maintained or preserved by means of any mechanical or electronic device, whether or not stored, maintained or preserved in a legible form, which a person is obliged by any provision of the Acts to keep, to issue or to produce for inspection,”.

The Finance Act, 1985

(No. 10 of 1985)

“(6) (a) The provisions of sections 146, 149 and 497 of the Income Tax Act, 1967, shall apply to a deduction under this section as they apply to any allowance, deduction, relief or reduction under the provisions specified in the Table to section 137 of that Act.

(b) The provisions of Schedule 4 to the Income Tax Act, 1967, and of paragraph IX of Schedule 18 to that Act shall, with any necessary modifications, apply in relation to a deduction under this section.”.

The Finance Act, 1986

(No. 13 of 1986)

“(2) Subject to the subsequent provisions of this section, where an eligible employee, in relation to a qualifying company, subscribes for eligible shares in the qualifying company, he shall be entitled to have a deduction made from his total income for the year of assessment in which the shares are issued of an amount equal to the amount of the subscription:”.

The Finance Act, 1987

(No. 10 of 1987)

“(2) In determining, for any chargeable period, what capital allowances fall to be made to a person in taxing a trade which consists of or includes the carrying on of qualifying purposes, section 241 of the Income Tax Act, 1967, shall apply to a car which, as respects that period, has been used by the person for qualifying purposes as if the reference in paragraph (b) (ii) of subsection (1) of that section to ‘20 per cent.’ were a reference to ‘40 per cent.’.”.

The Finance Act, 1991

(No. 13 of 1991)

The Finance Act, 1992

(No. 9 of 1992)

“(2) In relation to assets representing development expenditure, subsection (1) of section 241 of the Income Tax Act, 1967, shall, subject to subsection (3), have effect as if the reference in paragraph (b) (i) of the said subsection (1) to ‘15 per cent.’ were a reference to ‘100 per cent.’.”.

The Finance Act, 1995

(No. 8 of 1995)

PART II Pre-Consolidation Repeals

Number and Year	Short Title	Extent of Repeal
(1)	(2)	(3)
No. 8 of 1956	Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956.	Section 1.
No. 6 of 1967	Income Tax Act, 1967.	Section 43.
		In section 58 (5) (a) (i), the words “308 or”.
		Section 89A.
		Section 138A (7).
		Section 141 (7).
		Section 145 (3A) and (5).
		In section 186 (3), the words “, and to the respective duplicates thereof,” and the words “and duplicate”.
		In section 187 (1), the words from “, and references in this Act” to the end and subsection (2).
		In section 235 (7), the word “or” in paragraph (c) (where it last occurs), and paragraph (d).
		Section 241 (7), (8) and (9).
		Section 242.
		Section 243.
		In section 244 (4), paragraph (e).
		In section 244 (5) (b), the words “and (e)”.
		In section 244 (6), “, 243”.
		In section 245 (7), “, 243”.
		Section 247 (3).
		Section 249.
		Section 259.
		Section 262.
		Section 273 (2).
		In section 300 (1), the words “and 243”.
		Section 306.
		In section 309, the words “or 308”.
		Section 344.
		Section 346.
		Section 360.
		In section 441 (1) and (2), the words “or 440”.
		In section 442, the definition of “child”.
		In section 447, the definition of “child”.
		Section 448 (2).
		Section 476.
		Section 477 (2) and (3).
		In section 478, the words “contained in the duplicates, and”.
		Section 479.
		Section 480.
		Section 482 (3).
		In section 484 (3), the words from “including the issue” to “chattels” and the words “or distraint”.
		Section 494 (2).
		Section 495.
		In section 496 (1) (c), the words “(including interest to which section 30 (1) or 50 (2) of the Finance Act, 1974, applies)”.
		Section 540.
		Section 543.
		Section 557.
		Section 558.
		Schedule 2, Rule 1, paragraph (3).
		In Schedule 2, Rule 3, the words “or of keeping and maintaining a horse to enable him to perform the same,”.
		Schedule 13.
No. 17 of 1967	Finance Act, 1967.	Section 12 (5) (c).
No. 33 of 1968	Finance Act, 1968.	Section 4.
No. 21 of 1969	Finance Act, 1969.	Section 3 (3).
		Section 4.
		Section 5.
		In section 18 (1), the definition of “farming”.
No. 23 of 1971	Finance Act, 1971.	Section 11 (4).
No. 19 of 1972	Finance Act, 1972.	In section 15 (4), the words from “In applying this subsection” to the end.
		Section 16 (6).
		Section 17 (3).
		Section 18 (1) (b).
		Section 24.
		Section 25.
		First Schedule, Part II, paragraph 1 (2).
		First Schedule, Parts IV and V.
No. 27 of 1974	Finance Act, 1974.	In section 4, in paragraph (b) the word “or” (where it last occurs) and paragraph (c) and in paragraph (e), the words “, subject to the provisions of sections 233 and 525 of the Income Tax Act, 1967,”.
		Section 8 (2).
		In section 27 (2), the words “or 308” in paragraphs (a) and (b).
		Section 30.
		In section 31 (3), the words “Subject, as respects paragraph (a), to section 50 (4),” and paragraph (a).
		Section 40.
		Section 50.
No. 6 of 1975	Finance Act, 1975.	Section 31.
		Section 31A.
		In the Second Schedule, Part I, paragraph 2, “308,”.
		Third Schedule.
		Fifth Schedule.
No. 20 of 1975	Capital Gains Tax Act, 1975.	Section 2 (2).
		Section 27 (1) (d).
		In section 27 (3), the words “or (3A), as the case may be,”.
		Section 33 (8).
No. 7 of 1976	Corporation Tax Act, 1976.	In section 11 (6), the words “(excluding the provisions of Part XXV of the Income Tax Act, 1967 (Temporary Relief from Taxation))”.
		Section 12 (8).
		In section 39 (2) (b), the words “or 47”.
		In section 43 (5) (a), the words “, or that subsection as modified by section 37,”.
		In section 51 (3), paragraphs (b) and (c).
		Section 52 (5).
		Section 68.
		In section 147 (2), “, 543”.
		Section 153.
No. 16 of 1976	Finance Act, 1976.	Section 12.
		Section 15.
		Section 16.
No. 18 of 1977	Finance Act, 1977.	In section 39 (4) (b), the proviso.
No. 21 of 1978	Finance Act, 1978.	Section 9.
		First Schedule, Part III.
No. 11 of 1979	Finance Act, 1979.	Section 5.
		Section 8 (2) (b).
No. 14 of 1980	Finance Act, 1980.	Section 28.
No. 16 of 1981	Finance Act, 1981.	Section 13.
No. 14 of 1982	Finance Act, 1982.	Section 6.
		Section 13.
No. 15 of 1983	Finance Act, 1983.	Section 94 (1) (ee).
No. 9 of 1984	Finance Act, 1984.	Section 12 (9).
		Section 33.
		Part I, Chapter VIII.
		Part I, Chapter IX.
No. 13 of 1986	Finance Act, 1986.	Section 12 (9).
		Section 44 (4).
No. 10 of 1989	Finance Act, 1989.	Section 4 (7).
No. 13 of 1991	Finance Act, 1991.	Section 4 (3).
No. 9 of 1992	Finance Act, 1992.	Section 26 (1), (2), (3) and (5).
		Section 243 (a) (ii).
No. 13 of 1993	Finance Act, 1993.	Section 28.
No. 13 of 1994	Finance Act, 1994.	Section 46 (5).
No. 8 of 1995	Finance Act, 1995.	Section 6 (6).
		Section 7 (10).
		Section 21.
		Section 22.

The repeals in this Part of this Schedule shall not affect the liability to income tax or capital gains tax for years of assessment ending on or before the 5th day of April, 1996, or the liability to corporation tax for accounting periods ending on or before that date, or the assessment, collection or recovery of any of those taxes or of interest thereon or other proceedings relating to those taxes or that interest.