Finance Act, 1981

Finance Act, 1981 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 1981 Finance Act, 1981 Finance Act, 1981 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Print Full ActPriontáil an tAcht Iomlán Number 16 of 1981 FINANCE ACT, 1981 ARRANGEMENT OF SECTIONS PART I Income Tax, Resource Tax And Corporation Tax Chapter I Income tax Section 1. Amendment of provisions relating to exemption from income tax. 2. Personal reliefs. 3. Alteration of rates of income tax. 4. Amendment of section 128 (penalties) of Income Tax Act, 1967. 5. Amendment of section 198 (apportionment in cases of separate assessments) of Income Tax Act, 1967. 6. Restriction of relief under section 496 (repayment for interest paid) of Income Tax Act, 1967. 7. Amendment of section 17 (tax deductions from payments to sub-contractors in the construction industry) of Finance Act, 1970. 8. Amendment of section 7 (relief for certain expenditure on residential premises) of Finance Act, 1979. 9. Amendment of provisions relating to certain time limits. Chapter II Taxation of farming profits 10. Averaging of farm profits. 11. Amendment of section 334 (lands owned and occupied, and trades carried on, by charities) of Income Tax Act, 1967. 12. Amendment of section 477 (time for payment of tax) of Income Tax Act, 1967. 13. Farming: provision relating to relief in respect of increase in stock values. Chapter III Resource Tax 14. Cesser of resource tax. Chapter IV Corporation Tax 15. Time for payment of corporation tax. 16. Amendment of section 143 (return of profits) of Corporation Tax Act, 1976. 17. Amendment of Chapter VI (manufacturing companies) of Part I of Finance Act, 1980. Chapter V Income Tax and Corporation Tax 18. Exemption of payments out of Employers' Temporary Subvention Fund. 19. Amendment of section 34 (exemption from tax of income from patent royalties) of Finance Act, 1973. 20. Amendment of provisions relating to relief in respect of increase in stock values. 21. Extension of section 67 (distributions to non-resident individuals) of Corporation Tax Act, 1976. 22. Amendment of section 152 (provisions as to tax under section 151) of Corporation Tax Act, 1976. Chapter VI Income Tax and Corporation Tax: Relief for Certain Capital Expenditure 23. Deduction for certain expenditure on construction of rented residential accommodation. 24. Provisions supplementary to section 23. 25. Allowance for certain expenditure on construction of multistorey car-parks. 26. Allowance for certain capital expenditure on roads, bridges, etc. 27. Amendment of section 254 (industrial building allowance) of Income Tax Act, 1967. Chapter VII Profits or Gains from Dealing in or Developing Land 28. Amendment of section 17 (extension of charge under Case I of Schedule D to certain profits from dealing in or developing land) of Finance (Miscellaneous Provisions) Act, 1968. 29. Provisions relating to transactions in land. PART II Customs and Excise 30. Interpretation (Part II). 31. Beer. 32. Tobacco products. 33. Spirits. 34. Wine and made wine. 35. Hydrocarbons. 36. Televisions. 37. Amendment of duty on table waters. 38. Alteration of rate of duty on Refreshment House licence. 39. Confirmation of Order. 40. Increase of excise duties on licences for mechanically propelled vehicles. 41. Amendment of Finance (Excise Duties) (Vehicles) Act, 1952. PART III Value-Added Tax 42. Principal Act. 43. Amendment of section 1 (interpretation) of Principal Act. 44. Amendment of section 12 (deduction for tax borne or paid) of Principal Act. 45. Amendment of section 20 (refund of tax) of Principal Act. PART IV Capital Acquisitions Tax 46. Relief in respect of certain marriage settlements. PART V Stamp Duties 47. Amendment of section 58 (direction as to duty in certain cases) of Stamp Act, 1891. 48. Amendment of section 49 (exemption of certain instruments from stamp duty) of Finance Act, 1969. 49. Amendment of section 41 (stamp duty on bills of exchange and promissory notes) of Finance Act, 1970. 50. Revocation of Orders. PART VI Miscellaneous 51. Capital Services Redemption Account. 52. Disclosure of information to the Ombudsman. 53. Care and management of taxes and duties. 54. Short title, construction and commencement. FIRST SCHEDULE Amendment of Enactments SECOND SCHEDULE Rates of Excise Duty on Tobacco Products THIRD SCHEDULE Rates of Excise Duty on Spirits FOURTH SCHEDULE Part I Rates of Excise Duty on Wine Part II Rates of Excise Duty on Made Wine FIFTH SCHEDULE Rates of Excise Duty on Televisions Acts Referred to Capital Acquisitions Tax Act, 1976 1976, No. 8 Capital Gains Tax Act, 1975 1975, No. 20 Corporation Tax Act, 1976 1976, No. 7 Customs-free Airport Act, 1947 1947, No. 5 Finance (1909-10) Act, 1910 1910, c. 8 Finance Act, 1950 1950, No. 18 Finance Act, 1969 1969, No. 21 Finance Act, 1970 1970, No. 14 Finance Act, 1971 1971, No. 23 Finance Act, 1973 1973, No. 19 Finance Act, 1974 1974, No. 27 Finance Act, 1975 1975, No. 6 Finance Act, 1976 1976, No. 16 Finance Act, 1977 1977, No. 18 Finance Act, 1978 1978, No. 21 Finance Act, 1979 1979, No. 11 Finance Act, 1980 1980, No. 14 Finance (Excise Duties) (Vehicles) Act, 1952 1952, No. 24 Finance (Excise Duty on Tobacco Products) Act, 1977 1977, No. 32 Finance (Miscellaneous Provisions) Act, 1968 1968, No. 7 Finance (Taxation of Profits of Certain Mines) Act, 1974 1974, No. 17 Housing (Miscellaneous Provisions) Act, 1979 1979, No. 27 Income Tax Act, 1967 1967, No. 6 Local Government (Planning and Development) Acts, 1963 and 1976 Local Government (Toll Roads) Act, 1979 1979, No. 34 Mercantile Marine Act, 1955 1955, No. 29 Ombudsman Act, 1980 1980, No. 26 Patents Act, 1964 1964, No. 12 Refreshment Houses (Ireland) Act, 1860 1860, c. 107 Road Traffic Act, 1961 1961, No. 24 Stamp Act, 1891 1891, c. 39 Value-Added Tax Act, 1972 1972, No. 22 Number 16 of 1981 FINANCE ACT, 1981 AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE) AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE. [28th May, 1981] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: PART I Income Tax, Resource Tax and Corporation Tax Chapter I Income Tax Amendment of provisions relating to exemption from income tax. 1.—As respects the year 1981-82 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended— (a) in section 1— (i) in paragraph (b) of subsection (1), by the substitution of “a sum equal to twice the specified amount” for “£5,000”, and (ii) in subsection (2), by the substitution of “£4,000” for “£3,400” and of “£2,000” for “£1,700”, and (b) in section 2— (i) in subsection (3), by the substitution of “a sum equal to twice the specified amount” for “£10,000”, and (ii) in subsection (6), by the substitution of “£4,600” for “£4,000”, of “£5,600” for “£5,000”, of “£2,300” for “£2,000” and of “£2,800” for “£2,500”, and the said paragraph (b) and the said subsections (2), (3) and (6), as so amended, are set out in the Table to this section. TABLE (b) an individual makes a claim for the purpose, makes a return in the prescribed form of his total income for that year and proves that it does not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 60 per cent. of the amount by which his total income exceeds the specified amount, reduced to that sum. (2) In this section “the specified amount” means— (a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £4,000, and (b) in any other case, £2,000. (3) Where an individual to whom this section applies proves that his total income for a year of assessment for which this section applies does not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 60 per cent, of the amount by which his total income exceeds the specified amount, reduced to that sum. (6) In this section “the specified amount” means— (a) in a case where the individual would, apart from this section, be entitled to a deduction specified in paragraph (a) of the said section 138, £4,600: Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £5,600; (b) in any other case, £2,300: Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £2,800. Personal reliefs. 2.—(1) Where a deduction falls to be made from the total income of an individual for the year 1981-82 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2). TABLE Statutory provision Amount to be deducted from total income for 1980-81 Amount to be deducted from total income for 1981-82 and subsequent years (1) (2) (3) Income Tax Act, 1967 : £ £ section 138A (additional allowance for widows and others in respect of children) 500 650 section 138B (employee allowance) 400 600 section 141 (incapacitated child) 390 500 Finance Act, 1969 : section 3 (housekeeper taking care of incapacitated person) 330 500 Finance Act, 1971 : section 11 (blind person) 330 400 (both spouses blind) 660 1,000 (2) Section 4 of the Finance Act, 1980 , shall have effect subject to the provisions of this section. (3) The First Schedule shall have effect for the purpose of supplementing subsection (1). Alteration of rates of income tax. 3.— Section 8 of the Finance Act, 1980 , is hereby amended, as respects the year 1981-82 and subsequent years of assessment, by the substitution of the following Table for the Table to the said section: “TABLE PART I Part of taxable income Rate of tax Description of rate (1) (2) (3) The first £1,000 25 per cent. the reduced rate The next £4,500 35 per cent. the standard rate The next £2,000 45 percent. the higher rates The next £2,000 55 per cent. The remainder 60 per cent. PART II Part of taxable income Rate of tax Description of rate (1) (2) (3) The first £2,000 25 per cent. the reduced rate The next £9,000 35 per cent. the standard rate The next £4,000 45 percent. the higher rates The next £4,000 55 per cent. The remainder 60 per cent. ” Amendment of section 128 (penalties) of Income Tax Act, 1967. 4.— Section 128 of the Income Tax Act, 1967 , is hereby amended— (a) in subsection (2), by the substitution for “All penalties under this section” of “All penalties for failure to comply with any provision of regulations under this Chapter”, (b) in subsection (3)— (i) by the substitution of the following paragraph for paragraph (a): “(a) a person fails to comply with any provision of regulations under this Chapter,”, and (ii) by the substitution of the following paragraph for paragraph (c): “(c) such person continues, during a further period of two or more days, to fail to comply with the provision,”, and (c) in paragraph (a) of subsection (4)— (i) by the insertion after “defendant” where it first occurs of “or stated wages sheets or other records or documents were not produced by the defendant or the defendant did not remit stated tax to the collector or did not make a stated deduction or repayment of tax”, and (ii) by the insertion after “or certificate” at the end of the paragraph of “or did not produce those wages sheets or other records or documents or did not remit that tax to the collector or did not make that deduction or repayment of tax”, and the said subsection (2) and the said paragraph (a) of subsection (4), as so amended, are set out in the Table to this section. TABLE (2) All penalties for failure to comply with any provision of regulations under this Chapter may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any fine or penalty under any Act relating to the excise. (a) a certificate signed by an officer of the Revenue Commissioners which certifies that he has inspected the relevant records of the Revenue Commissioners and that it appears from them that, during a stated period, a stated return, statement, notification or certificate was not received from the defendant or stated wages sheets or other records or documents were not produced by the defendant or the defendant did not remit stated tax to the collector or did not make a stated deduction or repayment of tax shall be evidence until the contrary is proved that the defendant did not during that period send that return, statement, notification or certificate or did not produce those wages sheets or other records or documents or did not remit that tax to the collector or did not make that deduction or repayment of tax, Amendment of section 198 (apportionment in cases of separate assessments) of Income Tax Act, 1967. 5.— Section 198 (1) of the Income Tax Act, 1967 (inserted by the Finance Act, 1980 ) is hereby amended by the insertion, after paragraph (a), of the following paragraph: “(aa) any reduction of income tax which falls to be made under section 1 (1) (b) or 2 (3) of the Finance Act, 1980 , shall be allocated to the husband and the wife in proportion to the amounts of income tax which, but for the said section 1 (1) (b) or 2 (3), would have been payable by the husband 5 and by the wife,”. Restriction of relief under section 496 (repayment for interest paid) of Income Tax Act, 1967. 6.—(1) In this section— “relevant payment” means any sum paid on or after the 6th day of April, 1981, by the Minister for the Environment to an individual under a scheme providing for the payment of a special mortgage subsidy to first-time owner-occupiers of certain houses; “specified loan or loans” means a loan or loans in relation to which a relevant payment is made; “relevant tax repayment”, in relation to an individual, means, subject to subsection (3), the amount of tax which, apart from this section, would fall to be repaid to the individual under the provisions (hereafter in this section referred to as “the relevant provisions”) of section 496 of the Income Tax Act, 1967 , for a year of assessment on the amount of interest paid on a specified loan or loans by the individual in the year of assessment. (2) Where, for any year of assessment, in the case of an individual, a relevant tax repayment would fall to be made, that relevant tax repayment shall be reduced by the amount determined by the formula set out in the Table to this subsection, and notwithstanding any other provisions of the Income Tax Acts, the amount of tax as so reduced, and no other amount of tax, shall be repaid under the relevant provisions to the individual on the amount of interest paid by him in the year of assessment on a specified loan or loans. TABLE (R + S) − P where— R is the relevant tax repayment, S is the aggregate amount of any relevant payments made to the individual in the year of assessment or the amount of any relevant payment made to the individual where only one such payment was made in the year of assessment, and P is— (a) an amount equal to (R + S), or (b) the amount of any payment, or the aggregate amount of any payments where more than one payment was made, made by the individual in the year of assessment by way of repayment of the principal of any specified loan or loans or by way of payment of interest on any specified loan or loans, whichever is the less. (3) For the purposes of this section, in the case of an individual who, in the year of assessment, in addition to interest on a specified loan or loans, has paid other interest, the amount of the relevant tax repayment shall be the amount determined by the formula— A − B where— A is the amount of tax which, apart from this section, would fall to be repaid to the individual for the year of assessment under the relevant provisions on all interest paid by him in the year of assessment, and B is the amount of tax which would fall to be repaid to the individual for the year of assessment under the relevant provisions if no interest on a specified loan or loans had been paid by him in the year of assessment. (4) Where a relevant payment is made in respect of any period, that relevant payment shall be deemed for the purposes of this section to be made in the year of assessment into which the period falls: Provided that where the period falls partly into one year of assessment and partly into another year of assessment, the amount of the relevant payment made in respect of that period shall be apportioned to each year of assessment in the proportion which the part of the period falling into each year of assessment bears to the whole of the period and the amount so apportioned to a year of assessment shall be deemed, for the purposes of this section, to be paid in that year of assessment. Amendment of section 17 (tax deductions from payments to sub-contractors in the construction industry) of Finance Act, 1970. 7.— Section 17 (2) (inserted by the Finance Act, 1976 ) of the Finance Act, 1970 , is hereby amended, as respects payments made on or after the date of the passing of this Act, by the substitution for paragraph (b) of— “(b) a person carrying on a business which includes the erection of buildings or the manufacture, treatment or extraction of materials for use, whether used or not, in construction operations, or (bb) a person who is connected with a company carrying on such a business as is mentioned in paragraph (b) (a person being regarded for the purposes of this paragraph as being so connected if he would be regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 , as being so connected), or”. Amendment of section 7 (relief for certain expenditure on residential premises) of Finance Act, 1979. 8.—Section 7 of, and the Second Schedule to, the Finance Act, 1979 , shall have effect, for the purpose of ascertaining the amount of income on which a person is to be charged to income tax for the year 1981–82, as if— (a) “1981–82” were substituted for “1979–80” in subsection (1), and the following proviso were added to the said subsection: “Provided also that in a case where the claimant is a husband who is assessed to tax in accordance with the provisions of section 194 of the Income Tax Act, 1967 , this subsection shall have effect as if ‘£900’ were substituted for ‘£450’”, and (b) (i) “the period commencing on the 6th day of April, 1981, and ending on the 5th day of April, 1982” were substituted for “the period commencing on the 6th day of April, 1979, and ending on the 5th day of April, 1980” in the definition of “qualifying period” in paragraph 1 of that Schedule, and (ii) “1981–82” were substituted for “1979–80” in paragraph 4 (1) of that Schedule. Amendment of provisions relating to certain time limits. 9.—The provisions specified hereunder shall, as respects the year 1981–82 and subsequent years of assessment, have effect as if “twenty-four” were substituted for “twelve” in each place where it occurs: (a) paragraph (II) of the proviso to subsection (3) of section 81 (taxation of rents under short leases) of the Income Tax Act, 1967 , (b) paragraph (b) of subsection (1) of section 111 (basis of assessment) of the Income Tax Act, 1967 , (c) subsection (2) of section 553 (allowance to owner of mineral rights for expenses) of the Income Tax Act, 1967 , (d) subsection (2) of section 23 (work in progress at discontinuance) of the Finance Act, 1970 , (e) the provisos to subsections (1) and (2) of section 11 (charge to income tax on sums received from sale of scheduled mineral assets) of the Finance (Taxation of Profits of Certain Mines) Act, 1974 . Chapter II Taxation of farming profits Averaging of farm profits. 10.—The Finance Act, 1974 , is hereby amended by the insertion of the following section after section 20A (inserted by the Finance Act, 1978 ): “20B.—(1) Where an assessment in respect of profits or gains from farming is made on an individual, other than an individual to whom section 16 applies, for any year of assessment (being the year 1981-82 or any subsequent year of assessment), he may upon giving, within 30 days after the date of the notice of assessment, notice in writing to that effect to the inspector, elect to be charged to tax for that year in respect of those profits or gains in accordance with the provisions of subsection (2), and all the provisions of the Income Tax Acts (including, in particular, the provisions relating to appeals against assessments and payments on account) shall apply in relation to the said assessment as if the notice given to the inspector were a notice of appeal against the assessment under section 416 of the Income Tax Act, 1967 , and the said assessment shall be amended as necessary so as to give effect to the election so made by the individual: Provided that this subsection shall not apply as respects any year of assessment where for either of the two immediately preceding years of assessment the individual was not charged to tax in respect of profits or gains from farming in accordance with the provisions of section 58 (1) of the Income Tax Act, 1967 . (2) (a) An individual who is to be charged to tax for a year of assessment in respect of profits or gains from farming in accordance with the provisions of this subsection shall be so charged under Case I of Schedule D on the full amount of those profits or gains determined upon a fair and just average of the profits or gains from farming of the individual in each of the three years ending on that date in the year immediately preceding the year of assessment to which it has been customary to make up accounts, or where it has not been customary to make up accounts, on the 5th day of April immediately preceding the year of assessment. (b) Any profits or gains arising to and any loss sustained by the individual in the said three years in the carrying on of farming shall be aggregated for the purposes of this subsection: Provided that this paragraph shall not apply to a loss sustained prior to the 6th day of April, 1981, and the said loss shall not be aggregated with profits or gains for the purposes of this subsection. (3) Where, as respects a year of assessment, an individual duly elects in accordance with subsection (1), he shall, subject to subsection (4), be charged to tax for that year and for each subsequent year of assessment, in respect of profits or gains from farming, in accordance with the provisions of subsection (2): Provided that this subsection shall not apply for any year of assessment in which the individual— (a) is an individual to whom section 16 applies, or (b) is not, by virtue of section 15 (3), chargeable to tax on profits or gains from farming. (4) Where, for a year of assessment, an individual is, by virtue of subsection (3), chargeable to tax in respect of profits or gains from farming in accordance with the provisions of subsection (2) and he was so chargeable for each of the three years of assessment immediately preceding the year of assessment, he may, by notice in writing given to the inspector within six months before the 6th day of July in the said year of assessment, elect to be charged to tax for that year of assessment in accordance with the provisions of section 58 of the Income Tax Act, 1967 : Provided that where, for any year of assessment, in the case of an individual, subsection (3) does not apply by reason of paragraph (a) of the proviso to the said subsection (3), he shall be deemed to be entitled to elect and to have duly elected, as respects that year of assessment, in accordance with this subsection. (5) Where, as respects a year of assessment, an individual duly elects or is deemed to have elected in accordance with subsection (4)— (a) he shall be charged to tax for that year and for each subsequent year of assessment in accordance with the provisions of section 58 of the Income Tax Act, 1967 , and (b) there shall be made such assessment or assessments, if any, as may be necessary to secure that the amount of profits or gains from farming on which he is charged for each of the two years of assessment immediately preceding the year preceding the year of assessment, as respects which the individual elects or is deemed to have elected in accordance with subsection (4), shall be not less than the amount on which he is charged by virtue of subsection (3) in accordance with the provisions of subsection (2) for the said year preceding the year of assessment. (6) In determining, for any year of assessment, what capital allowances, balancing allowances or balancing charges fall to be made to or on an individual in taxing a trade of farming in accordance with the provisions of subsection (2), he shall be deemed to be chargeable for that year of assessment in respect of the profits or gains of the said trade in accordance with the provisions of section 58 (1) of the Income Tax Act, 1967 . (7) Nothing in this section shall prejudice or restrict the operation of section 58 (5) of the Income Tax Act, 1967 , in any case where a trade of farming is permanently discontinued. (8) Where, for any year of assessment, a loss is aggregated with profits or gains in accordance with subsection (2) (b), and the amount of the said loss is in excess of the said profits or gains, one-third of the amount of such excess shall be deemed for the purposes of Chapter I of Part XIX of the Income Tax Act, 1967 , to be a loss sustained in the trade of farming in the final year of the three years on the average of the profits or gains of which the individual is to be charged to tax for that year of assessment, and any loss so aggregated shall not be eligible for relief under any provision of the Income Tax Acts, apart from this subsection. (9) The profits or gains from farming of an individual, on which he is to be charged to tax for any year of assessment by virtue of subsection (3) in accordance with the provisions of subsection (2), shall be deemed to be the profits or gains from farming of that individual in determining his total income for that year for all the purposes of the Income Tax Acts, apart from this section, and any provisions of those Acts relating to the delivery of any return, account (including balance sheet), statement, declaration, book, list or other document or the furnishing of any particulars shall apply as if this section had not been enacted.”. Amendment of section 334 (lands owned and occupied, and trades carried on, by charities) of Income Tax Act, 1967. 11.— Section 334 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1974-75 and subsequent years of assessment, by the insertion after subsection (2) of the following subsection: “(2A) Subsection (1) (c) shall apply in respect of the profits of a trade of farming carried on by a charity as if the words after ‘solely to the purposes of the charity’ were deleted.”. Amendment of section 477 (time for payment of tax) of Income Tax Act, 1967. 12.— Section 477 of the Income Tax Act, 1967 , shall have effect as if in subsection (2) (inserted by the Finance Act, 1980 )— (a) “1981-82” were substituted for “1980-81” in paragraph (a), and (b) “1981” were substituted for “1980”, and “1982” were substituted for “1981”, in each place where they occur, in paragraph (b). Farming: provision relating to relief in respect of increase in stock values. 13.—(1) Where, in computing profits from the trade of farming, a deduction allowed by virtue of section 12 of the Finance Act, 1976 , has effect for the year 1981-82— (a) section 31 (4) (a) of the Finance Act, 1975 (as applied by section 12 (2) (a) of the Finance Act, 1976 ), shall apply and have effect as if “less 20 per cent. of its trading profits for that period” were deleted, and (b) the said section 12 shall have effect as if subsection (2) (c) (inserted by the Finance Act, 1979 ) had not been enacted. (2) Where a deduction falls to be made under subsection (2) of section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , in relation to the trade of farming for any accounting period which ends on or after the 6th day of April, 1980, the said section 31A shall apply and have effect as respects that accounting period as if in subsection (4) (a) “less 20 per cent. of its trading income for that period” were deleted. Chapter III Resource Tax Cesser of resource tax. 14.—Notwithstanding anything in Chapter IV of Part I of the Finance Act, 1980 , no assessment to resource tax shall be made in respect of the year 1981-82 or any subsequent year of assessment. Chapter IV Corporation tax Time for payment of corporation tax. 15.—(1) Section 6 (4) of the Corporation Tax Act, 1976 , is hereby amended as respects accounting periods ending on or after the 6th day of April, 1980— (a) in subparagraph (ii) of paragraph (a), by the substitution of “twelve” for “fifteen”, and (b) in subparagraph (ii) of paragraph (b), by the substitution of “such an interval from the end of that accounting period as is three months less than the interval” for “the like interval from the end of such accounting period as there was”, and the said subparagraphs, as so amended, are set out in the Table to this subsection. TABLE (ii) the second instalment within twelve months from the end of the accounting period or, if it is later, within two months from the making of the assessment. (ii) in respect of any subsequent accounting period, within such an interval from the end of that accounting period as is three months less than the interval between the end of the first accounting period for which the company was within the charge to corporation tax and the date on or before which the second instalment of corporation tax for that first accounting period would have become payable if the assessment for that accounting period had been made on the day immediately following the end of that accounting period: (2) If subsection (1) would, but for this subsection, have effect so as to require that the second instalment of corporation tax assessed for an accounting period which, apart from subsection (1), would fall to be paid within a period ending on or after the date of the passing of this Act, should fall to be paid within a period ending on a date earlier than the date of such passing, that second instalment shall, notwithstanding subsection (1), fall to be paid within a period ending on the date of such passing. (3) Subsection (1) shall not have effect in relation to the second instalment of corporation tax assessed for an accounting period which, apart from that subsection, would fall to be paid within a period ending before the date of the passing of this Act. Amendment of section 143 (return of profits) of Corporation Tax Act, 1976. 16.— Section 143 of the Corporation Tax Act, 1976 , is hereby amended by the substitution of the following subsections for subsections (1) and (2): “(1) A company may be required by a notice served on it by an inspector or other officer of the Revenue Commissioners to deliver to the officer within the time limited by the notice a return of— (a) the profits of the company computed in accordance with this Act— (i) specifying the income taken into account in computing those profits, with the amount from each source, (ii) giving particulars of all disposals giving rise to chargeable gains or allowable losses under the provisions of the Capital Gains Tax Acts and this Act and particulars of those chargeable gains or allowable losses, and (iii) giving particulars of all charges on income to be deducted against those profits for the purpose of the assessment to corporation tax, and (b) the distributions received by the company from companies resident in the State and the tax credits to which the company is entitled in respect of those distributions. (2) A notice under this section may require a return of profits arising in any period during which the company was within the charge to corporation tax together with particulars of distributions received in that period from companies resident in the State and of tax credits to which the company is entitled in respect of those distributions.”. Amendment of Chapter VI (manufacturing companies) of Part I of Finance Act, 1980. 17.—As respects any relevant accounting period within the meaning of section 38 of that Act, Chapter VI of Part I of the Finance Act, 1980 , is hereby amended— (a) by the insertion in section 39 after subsection (1) of the following subsections: “(1A) The definition of ‘goods’ contained in subsection (1) shall include— (a) fish produced within the State on a fish farm, and (b) cultivated mushrooms cultivated within the State, in the course of a trade by the company which, in relation to the relevant accounting period, is the company claiming relief under this Chapter in relation to the trade and references in this Chapter to ‘manufactured’ shall be construed— (i) in relation to fish, as including references to produced, and (ii) in relation to mushrooms, as including references to cultivated, and words in this Chapter cognate to ‘manufactured’ shall be construed accordingly. (1B) The following provisions shall apply, for the purpose of relief under this Chapter, in relation to a company that carries on a trade which consists of or includes the repairing of ships— (a) repairs carried out within the State to a ship shall be regarded as the manufacture within the State of goods, and (b) any amount receivable in payment for such repairs so carried out shall be regarded as an amount receivable from the sale of goods. (1C) (a) In this subsection ‘engineering services’ means design and planning services the work on the rendering of which is carried out in the State in connection with chemical, civil, electrical or mechanical engineering works executed outside the territories of the Member States of the European Communities. (b) Where a company carries on a trade which consists of or includes the rendering of engineering services, the following provisions shall apply for the purpose of relief under this Chapter— (i) the rendering within the State of such services shall be regarded as the manufacture within the State of goods, and (ii) any amount receivable in payment for such services so rendered shall be regarded as an amount receivable from the sale of goods. (1D) The inspector may by notice in writing require a company claiming relief from tax by virtue of subsection (1B) or (1C), as the case may be, to furnish him with such information or particulars as may be necessary for the purpose of giving effect to that subsection, and section 41(2) shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this subsection.”, and (b) by the insertion after section 39 of the following section: “Relief in relation to income from certain trading operations carried on in Shannon Airport. 39A.—(1) In this section— ‘the airport’ has the same meaning as in the Customs-free Airport Act, 1947 ; ‘company’ means any company carrying on a trade; ‘the EEC Treaty’ means the Treaty establishing the European Economic Community, signed at Rome on the 25th day of March, 1957; ‘the Minister’ means the Minister for Finance; ‘qualified company’ means a company the whole or part of the trade of which is carried on within the airport; ‘relevant trading operations’ means trading operations specified in a certificate given by the Minister under subsection (2); ‘trading operation’ means any trading operation which, apart from this section, is not the manufacture of goods for the purpose of this Chapter but is carried on by a qualified company. (2) Subject to subsections (5) and (6), the Minister may give a certificate certifying that such trading operations of a qualified company as are specified in the certificate are, with effect from a date to be specified in the certificate, relevant trading operations for the purpose of this section, and any certificate so given shall, unless it is revoked under subsection (4), remain in force until the 31st day of December, 2000: Provided that— (a) any trading operations in respect of which the Minister has given a certificate under section 70 (2) of the Corporation Tax Act, 1976 , (or a certificate which has effect as if it were a certificate given under that section) shall not be certified as relevant trading operations unless the Minister is satisfied that those operations arise from an initial investment; and (b) in determining what constitutes an initial investment for the purposes of this proviso the Minister shall have regard to the principles for the time being applied by the Commission of the European Communities in accordance with the powers vested in it by Articles 92 to 94 of the EEC Treaty. (3) A certificate under subsection (2) may be given either without conditions or subject to such conditions as the Minister considers proper and specifies therein. (4) Where, in the case of a company in relation to which a certificate under subsection (2) has been given— (a) the trade of the company ceases or becomes carried on wholly outside the airport, or (b) the Minister is satisfied that the company has failed to comply with any condition subject to which the certificate was given, the Minister may, by notice in writing served by registered post on the company, revoke the certificate with effect from such date as may be specified in the notice. (5) The Minister shall not certify, under subsection (2), that a trading operation is a relevant trading operation unless it is carried on within the airport and falls within one or more of the following classes of trading operations— (a) the repair or maintenance of aircraft, (b) trading operations in regard to which the Minister is of opinion, after consultation with the Minister for Transport, that they contribute to the use or development of the airport, (c) trading operations which are ancillary to any of those operations described in the foregoing paragraphs or to any operation consisting, apart from this section, of the manufacture of goods. (6) The Minister shall not certify, under subsection (2), that any of the following trading operations is a relevant trading operation— (a) the rendering of— (i) services to embarking or disembarking aircraft passengers, including hotel, catering, money-changing or transport (other than air transport) services, or (ii) services in connection with the landing, departure, loading or unloading of aircraft, (b) the operation of a scheduled air transport service, (c) selling by retail, (d) the sale of consumable commodities for the fuelling of aircraft or for shipment as aircraft stores. (7) In the case of a qualified company carrying on relevant trading operations, the following provisions shall apply for the purpose of relief under this Chapter— (a) the relevant trading operations shall be regarded as the manufacture within the State of goods, and (b) any amount receivable in payment for anything sold, or any services rendered, in the course of the relevant trading operations shall be regarded as an amount receivable from the sale of goods. (8) (a) Where at the end of any relevant accounting period a qualified company has fifty or more full-time employees, the aggregate of all amounts of relevant relief under this Chapter to which the company is entitled for all relevant accounting periods shall not exceed an amount determined in accordance with the principles for the time being applied by the Commission of the European Communities under the powers vested in it by Articles 92 to 94 of the EEC Treaty, and there shall be made such additional assessments or adjustments of assessments as may be required in any case in order to give effect to this subsection. (b) In this subsection— ‘full-time employees’ means, in relation to a qualified company, employees who are employed by the company on a full-time basis in relation to relevant trading operations and the duties of whose employment are such that they are required to devote substantially the whole of their time to the service of the company; ‘relevant relief under this Chapter’ means the relief under this Chapter to which a qualified company would not be entitled but for the provisions of subsection (7). (9) (a) The Revenue Commissioners may make regulations for the purposes of giving effect to subsection (8) (a) and to provide for any ancillary or consequential matters. (b) Every regulation made under paragraph (a) 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. (10) The inspector may by notice in writing require a company claiming relief from tax by virtue of this section to furnish him with such information or particulars as may be necessary for the purpose of giving effect to this section, and section 41(2) shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this section.”. Chapter V Income Tax And Corporation Tax Exemption of payments out of Employers' Temporary Subvention Fund. 18.—(1) A payment to which this section applies shall be disregarded for all the purposes of the Tax Acts. (2) This section applies to any payment made, whether before or after the passing of this Act, to an employer in respect of a person employed by him, being a payment out of the fund known as the Employers' Temporary Subvention Fund which was established on the 28th day of August, 1980, and is administered by a committee representative of the Irish Congress of Trade Unions, the Federated Union of Employers and the Confederation of Irish Industry. Amendment of section 34 (exemption from tax of income from patent royalties) of Finance Act, 1973. 19.— Section 34 (3) of the Finance Act, 1973 , is hereby amended by the substitution of “an invention which is the subject of a qualifying patent” for “an invention which is the subject of a patent”, and the said section 34 (3), as so amended, is set out in the Table to this section. TABLE (3) Where, under section 92 of the Patents Act, 1964 , or any corresponding provisions of the law of any other country, an invention which is the subject of a qualifying patent is made, used, exercised or vended by or for the service of the State or the government of the country concerned, the provisions of this section shall have effect as if the making, user, exercise or vending of the invention had taken place in pursuance of a licence and any sums paid in respect thereof were income from a qualifying patent. Amendment of provisions relating to relief in respect of increase in stock values. 20.—(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended by the substitution of “1981” for “1980”— (a) in paragraph (iv) (inserted by the Finance Act, 1979 ) of the proviso (inserted by the Finance Act, 1977 ) to subsection (4) (a), (b) in subsection (7) (inserted by the Finance Act, 1977 ), and (c) in subsection (9) (inserted by the Finance Act, 1977 ) in each place where it occurs, and the said paragraph, the said subsection (7) (other than the proviso) and the said subsection (9) (other than the proviso), as so amended, are set out in the Table to this subsection. TABLE (iv) a deduction shall not be allowed under the provisions of this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 1981. (7) Where in relation to an accounting period a company's opening stock value exceeds its closing stock value, the amount of the excess (in this section referred to as the company's “decrease in stock value”) shall, if the accounting period ends on a date before the 6th day of April, 1981, be treated in the computation of the company's trading income for the purposes of corporation tax, as a trading receipt of the company's trade for that accounting period: (9) In the computation of a company's trading income for the purposes of corporation tax for any accounting period which ends on or after the 6th day of April, 1981, in which there is a decrease in stock value, there shall be treated as a trading receipt of the company's trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C where— A is the aggregate amount of the company's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1981, B is the aggregate amount of the company's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1981, and C is the aggregate of the amounts which under this subsection are treated as trading receipts of the company's trade for preceding accounting periods: (2) Section 12 of the Finance Act, 1976 , is hereby amended— (a) by the substitution of “, 1980-81 or 1981-82” for “or 1980-81” (inserted by the Finance Act, 1980 ) in paragraph (c) (inserted by the Finance Act, 1979 ) of subsection (2), (b) by the substitution in subsection (3) of “1981-82” for “1980-81” (inserted by the Finance Act, 1980 ), and (c) by the substitution of “1981” for “1980” (inserted by the Finance Act, 1980 ) in each place where it occurs in subsection (5) (inserted by the Finance Act, 1978 ) and subsection (6) (inserted by the Finance Act, 1977 ), and the said paragraph, the said subsection (3), the said subsection (5) (other than the proviso) and the said subsection (6) (other than the proviso), as so amended, are set out in the Table to this subsection. TABLE (c) Where a deduction allowed by virtue of this section in computing a person's trading profits of a trade for an accounting period has effect for the year 1979-80, 1980-81 or 1981-82, the amount of the deduction shall, notwithstanding any provision to the contrary, be three-fourths of the amount which, apart from this paragraph, would be the amount of the deduction for that accounting period. (3) Any deduction allowed by virtue of this section in computing a person's trading profits for an accounting period shall not have effect for any purpose of the Income Tax Acts for any year of assessment prior to the year 1974-75 or later than the year 1981-82. (5) In the computation of a person's trading income for an accounting period in which there is a decrease in stock value and which ends on a date in the period from the 6th day of April, 1976, to the 5th day of April, 1981, the amount of that decrease shall be treated as a trading receipt of the trade for that accounting period: (6) In the computation of a person's trading income for any accounting period in which there is a decrease in stock value and which ends on or after the 6th day of April, 1981, there shall be treated as a trading receipt of the trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C where— A is the aggregate amount of the person's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1981, B is the aggregate amount of the person's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1981, and C is the aggregate of the amounts which are treated as trading receipts of the person's trade for preceding accounting periods which ended on or after the 6th day of April, 1981: Extension of section 67 (distributions to non-resident individuals) of Corporation Tax Act, 1976. 21.— Section 67 of the Corporation Tax Act, 1976 , shall, with any necessary modifications, apply in relation to a distribution to which section 64 of that Act applies, which is made on or after the 6th day of April, 1978, and which is received by a company that is not resident in the State as it applies in relation to a distribution received by an individual. Amendment of section 152 (provisions as to tax under section 151) of Corporation Tax Act, 1976. 22.— Section 152 of the Corporation Tax Act, 1976 , is hereby amended, as respects any assessment to income tax which is made on or after the date of the passing of this Act, by the insertion after subsection (3) of the following subsection: “(4) Section 551 (1) of the Income Tax Act, 1967 , shall not apply where, by virtue of section 98 (4), there is any discharge or repayment of tax assessed under section 151.”. Chapter VI Income Tax and Corporation Tax: Relief for Certain Capital Expenditure Deduction for certain expenditure on construction of rented residential accommodation. 23.—(1) (a) In this section— “certificate of reasonable cost” means a certificate granted by the Minister for the Environment for the purposes of this section, stating that the amount specified in the certificate in relation to the cost of construction of the house to which the certificate relates appears to him at the time of the granting of the certificate and on the basis of the information available to him at that time to be reasonable, and section 18 of the Housing (Miscellaneous Provisions) Act, 1979 , shall, with any necessary modifications, apply to a certificate of reasonable cost as if it were a certificate of reasonable value; “certificate of reasonable value” has the meaning assigned to it by section 18 of the Housing (Miscellaneous Provisions) Act, 1979 ; “house” includes any building or part of a building used or suitable for use as a dwelling and any out-office, yard, garden or other land appurtenant thereto or usually enjoyed therewith; “lease”, “lessee”, “lessor” and “premium” have the meanings assigned to them by Chapter VI of Part IV of the Income Tax Act, 1967 ; “qualifying lease”, in relation to a house, means a lease of the house the consideration for the grant of which consists— (i) solely of periodic payments all of which are, or fall to be treated as, amounts by way of rent for the purposes of Chapter VI of Part IV of the Income Tax Act, 1967 , or (ii) of payments of the kind mentioned in paragraph (i) together with a payment by way of premium which does not exceed 10 per cent. of the relevant cost of the house: Provided that the lease shall not be a qualifying lease if the terms of the lease contain any provisions enabling the lessee or any other person, directly or indirectly, at any time to acquire any interest in the house for a consideration which is less than that which might be expected to be given at that time for the acquisition of the interest if the negotiations for that acquisition were conducted in the open market at arm's length; “qualifying period” means the period commencing on the 29th day of January, 1981, and ending on the 31st day of March, 1984; “qualifying premises” means a house— (i) which is used solely as a dwelling, and (ii) the total floor area of which— (I) is not less than 30 square metres and not more than 75 square metres in the case where the house is a separate self-contained flat or maisonette in a building of two or more storeys, or (II) is not less than 35 square metres and not more than 125 square metres in any other case, and (iii) in respect of which there is in force either a certificate of reasonable cost the amount specified in which in respect of the cost of construction of the house to which the certificate relates is not less than the expenditure actually incurred on such construction or, if it is a new house provided for sale, a certificate of reasonable value wherein the amount for which the house to which the certificate relates is stated to represent reasonable value is not less than the net price paid for the house on the sale in respect of which the certificate is granted, and (iv) which, without having been used, is first let in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (save for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease; “relevant cost”, in relation to a house, means, subject to subsection (3), an amount equal to the aggregate of— (i) the expenditure incurred on the acquisition of, or of rights in or over, any land on which the house is constructed, and (ii) the expenditure actually incurred on the construction of the house; “relevant period”, in relation to a qualifying premises, means the period of ten years beginning with the date of the first letting of the premises under a qualifying lease; “total floor area” means the total floor area of a house measured in the manner referred to in section 4 (2) (b) of the Housing (Miscellaneous Provisions) Act, 1979 . (b) (i) For the purposes of determining, in relation to any claim under subsection (2), whether and to what extent expenditure incurred on the construction of a qualifying premises is incurred during the qualifying period, only such an amount of that expenditure as is determined by the inspector, according to the best of his knowledge and judgment, to be properly attributable to work on the construction of the premises which was actually carried out during the qualifying period shall be treated as having been incurred during that period. (ii) Where, by virtue of subsection (4), expenditure on the construction of any premises includes expenditure on the development of any land, subparagraph (i) shall have effect, with any necessary modifications, as if the references therein to the construction of any premises were references to the development of such land. (iii) Any amount which, by virtue of subparagraph (i) or (ii), is determined by the inspector may be amended by the Appeal Commissioners or by the Circuit Court on the hearing, or the rehearing, of an appeal against that determination. (c) For the purposes of this section, other than for the purposes mentioned in paragraph (b) (i), expenditure incurred on the construction of a qualifying premises shall be deemed to have been incurred on the date of the first letting of the premises under a qualifying lease. (d) A person shall be regarded for the purposes of this section as connected with another person if he would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 . (2) Where a person, having made a claim in that behalf, proves that he has incurred expenditure on the construction of a qualifying premises, he shall be entitled, in computing for the purposes of subsection (4) of section 81 of the Income Tax Act, 1967 , the amount of a surplus or deficiency in respect of the rent from the said premises, to a deduction of so much (if any) of the expenditure as falls to be treated under any of the provisions of this section as having been incurred by him in the qualifying period and all the provisions of Chapter VI of Part IV of the said Act shall apply as if the said deduction were a deduction authorised by the provisions of subsection (5) of the said section 81: Provided that where any premium or other sum which is payable, directly or indirectly, under a qualifying lease, or otherwise under the terms subject to which the lease is granted, to or for the benefit of the lessor or to or for the benefit of any person connected with the lessor, or any part of such premium or sum, is not, or is not treated as, an amount by way of rent for the purposes of the said section 81, the expenditure falling to be treated as having been incurred in the qualifying period on the construction of the qualifying premises to which the qualifying lease relates shall be deemed, for the purposes of this subsection, to be reduced by the lesser of— (a) the amount of the said premium or sum, or as the case may be, the said part of such premium or sum, and (b) the amount which bears to the amount mentioned in paragraph (a) the same proportion as the amount of the expenditure actually incurred on the construction of the qualifying premises which falls to be treated under subsection (1) (b) as having been incurred in the qualifying period bears to the whole of the expenditure incurred on the said construction. (3) (a) Where a qualifying premises forms part of a building or is one of a number of buildings in a single development, or forms part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary— (i) of the expenditure incurred on the construction of the said building or buildings, and (ii) of the amount which would be the relevant cost in relation to the said building or buildings if the building or buildings, as the case may be, were a single qualifying premises, for the purposes of determining the expenditure incurred on the construction of the qualifying premises and the relevant cost in relation to the qualifying premises. (b) Any apportionment required by this paragraph shall be made by the inspector according to the best of his knowledge and judgment. (c) An apportionment made under paragraph (a) may be amended by the Appeal Commissioners or by the Circuit Court on the hearing, or the rehearing, of an appeal against any deduction granted on the basis of the apportionment. (4) In this section references to the construction of any premises shall be construed as including references to the development of the land on which the premises are constructed or which is used in the provision of gardens, grounds, access or amenities in relation to the prem …