(g) A person who contravenes the provisions of this subsection or who contravenes or fails to comply with a regulation under this subsection shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £1,000 and any hydrocarbon light oil in respect of which the offence was committed shall be liable to forfeiture.
\n
(4)Where, in respect of any particular premises, a person is required to take out a licence under subsection (3) and a licence under paragraph 12 (12) of the Order of 1975 in respect of a period during which both of the licences are to remain in force, the Revenue Commissioners shall, notwithstanding subsections (1) and (3), on application to them by the said person in such manner and form as they may from time to time prescribe for this purpose, issue a licence to that person in respect of the said premises on payment of a duty of excise of £20 and the licence so issued shall be deemed to be licences granted, in respect of the said period, under the provisions of— (a) subsection (3) and (b) the said paragraph 12 (12), and the said duty of excise shall be deemed to be the licence duty payable under those provisions, and those provisions shall apply accordingly.
\n
(5)
\n
Section 73
\n
of the Finance Act, 1986 , is hereby amended— (a) by the substitution in subsection (2) of that section for “the duty of excise imposed by” of “either of the duties of excise imposed by paragraph 11 or” and the said subsection, as so amended, is set out in the Table to this section, and (b) by the insertion after subsection (2) of that section of the following subsection: “(2A) Where an officer of the Revenue Commissioners enters any premises under subsection (2), he may inspect any vessel, delivery pump or other container, or any vehicle found on the premises by the said officer containing any hydrocarbon oil or believed by the officer to contain hydrocarbon oil and may examine and take samples of any hydrocarbon oil contained in any such vessel, delivery pump or other container or vehicle and any person occupying or for the time being in charge of any such premises shall, when required by the said officer, give such facilities and assistance for inspecting and examining any vessel, delivery pump or other container or vehicle and for taking samples of or measuring the quantity of any hydrocarbon oil found on the said premises as the said officer may reasonably require.”.
\n
TABLE
\n
(2)An officer of the Revenue Commissioners may, at all reasonable times, enter any premises in which any dealing in hydrocarbon oil liable to either of the duties of excise imposed by paragraph 11 or paragraph 12 of the Order of 1975 is being or is reasonably believed by the officer to be carried on or in which any books, records, accounts or other documents relating or reasonably believed by the officer to relate to any dealing in such hydrocarbon oil are kept and may there require any person to produce all books, records, accounts or other documents relating to any dealing in such hydrocarbon oil and may search for, inspect, and take copies of or extracts from any such books, records, accounts or other documents relating or believed by the officer to relate to any dealing in such hydrocarbon oil and may remove and retain the said books, records, accounts or other documents relating or believed by the officer to relate to any dealing in such hydrocarbon oil and may remove and retain the said books, records, accounts or other documents for such period as may be reasonable for their further examination.
\n
Increase of duties on registration of firearms dealers.
\n
46.—(1) The duty of excise on the registration of a person in a register of firearms dealers imposed by subsection (1) (as amended by section 52 (a) of the Finance Act, 1971 ) of section 41 of the Finance Act, 1925 , shall be charged, levied and paid at the rate of £50 in lieu of the rate specified in the said subsection (1).
\n
(2)The duty of excise on the registration of a person in a register of firearms dealers imposed by subsection (3) (inserted by section 52 (c) of the Finance Act, 1971 ) of section 41 of the Finance Act, 1925 , shall be charged, levied and paid at the rate of £5 in lieu of the rate specified in the said subsection (3).
\n
Increase of duties on certain other licences, etc.
\n
47.—(1) The duty of excise on a firearm certificate imposed by section 18
\n
(2)of the Finance Act, 1964 , shall, in the case of any such certificate coming into force, whether by way of grant or renewal, on or after the 1st day of August, 1989, be charged, levied and paid at the rates specified in
\n
Part II
\n
of the Sixth Schedule in lieu of the rates specified in the Third Schedule to the Finance Act, 1983 .
\n
(2)The duty of excise imposed by section 17 of the Finance Act, 1956 , on gaming licences issued under section 19 of the Gaming and Lotteries Act, 1956 , shall be charged, levied and paid on such licences issued on or after the 1st day of June, 1989, at the rates specified in
\n
Part III
\n
of the Sixth Schedule in lieu of the rates specified in the Second Schedule to the Finance Act, 1983 .
\n
(3)(a)
\n
Section 74
\n
(1)of the Finance Act, 1980 , shall, as respects the grant of gaming machine licences on or after the 1st day of June, 1989, be amended by the substitution for “£62.50”, “£125”, “£187.50” and “£250” (inserted by section 63
\n
(1)of the Finance Act, 1983 ) of “£80”, “£160”, “£240” and “£320”, respectively. (b) Paragraph (aa) (inserted by section 74
\n
(2)of the Finance Act, 1980 ) of subsection (7) of section 43 of the Finance Act, 1975 , shall, as respects the grant of gaming machine licences on or after the 1st day of June, 1989, be amended by the substitution for “£40”, “£80”, “£120” and “£160” (inserted by section 63
\n
(2)of the Finance Act, 1983 ) of “£50”, “£100”, “£150” and “£200”, respectively.
\n
(4)The duty of excise in respect of a licence, permit or certificate, as the case may be, mentioned in column (2) of
\n
Part IV
\n
of the Sixth Schedule at any reference number imposed by the enactment specified in column (3) of the said
\n
Part IV
\n
at that reference number shall be charged, levied and paid, as on and from the date specified in column (4) of the said
\n
Part IV
\n
at that reference number at the rate specified in column (5) of the said
\n
Part IV
\n
at that reference number in lieu of the rate specified in— (a) subsection (2), (3) or (5) of section 66 of the Finance Act, 1983, as respects an auctioneer's licence, an auction permit or a house agent's licence, respectively, (b) subsection (1) or (2) of section 67 of the Finance Act, 1983 , as respects a bookmaker's licence or a bookmaker's premises registration certificate, respectively, and (c) Part IV of the Seventh Schedule to the Finance Act, 1980 , as respects any other licence concerned.
\n
Imposition of duty on registration of clubs and cesser of club duty.
\n
48.—(1) In this section “impressed” and “stamps” have the same meanings, respectively, as they have in the Stamp Duties Management Act, 1891, as amended by this Act.
\n
(2)There shall be charged, levied and paid on every certificate of registration of a club granted under the Registration of Clubs (Ireland) Act, 1904 , on or after the 1st day of September, 1989, a duty of excise of £100.
\n
(3)The duty imposed by this section on a certificate of registration shall be paid and collected by means of stamps equal in value to the amount of such duty impressed on or affixed to the application in writing for registration or renewal of registration under section 2 of the Registration of Clubs (Ireland) Act, 1904 , and the Stamp Duties Management Act, 1891, shall apply to such duty and stamps.
\n
(4)Notwithstanding anything to the contrary contained in any Act, a certificate of registration of a club which is liable to the duty imposed by this section shall not be granted unless the application in writing referred to in subsection (3) for such a certificate has been duly stamped in accordance with that subsection.
\n
(5)The duty of excise on statements of purchases of intoxicating liquor to be supplied in a club imposed by section 48 of the, Finance (1909-10) Act, 1910 , shall not be charged or levied, and the provisions of the said section 48 shall cease to have effect, in respect of such purchases to be supplied in a club during the calendar year 1989 or during any subsequent year.
\n
(6)Any amount paid for the purposes of this section in relation to a certificate of registration may be repaid by the Revenue Commissioners if— (a) the application for the certificate is withdrawn before the determination of the court proceedings in relation to it, (b) the certificate is not granted, or (c) the amount is paid in error.
\n
(7)The provisions of subsection (6) of section 48 of the Finance (1909-10) Act, 1910 , shall cease to have effect on and from the 1st day of October, 1989.
\n
Repeal of provisions relating to hawkers' licences.
\n
49.—(1) Each enactment specified in column (2) of
\n
Part I
\n
of the Seventh Schedule is hereby repealed to the extent specified in column (3) of that Schedule.
\n
(2)This section shall come into operation on the 1st day of April, 1990.
\n
Repeal and amendment of provisions relating to refreshment house licences.
\n
50.—(1) Each enactment specified in column (2) of
\n
Part II
\n
of the Seventh Schedule is hereby repealed to the extent specified in column (3) of that Schedule.
\n
(2)In the Refreshment Houses (Ireland) Act, 1860 — (a) section 6 is hereby amended by the deletion of all the words from “; and the resident, owner, tenant, or occupier” down to and including “Parliamentary census”, and the said section 6, as so amended, is set out in the Table to this section, (b) the provisions of section 13 shall apply and have effect as if the references therein to a person licensed to keep a refreshment house were references to a person who keeps a refreshment house, (c) the powers of entry into refreshment houses and premises belonging thereto conferred by section 20 shall, notwithstanding this section, apply and have effect in relation to refreshment houses and such premises as if the said refreshment houses were licensed refreshment houses as referred to in the said section 20 and that section shall be construed accordingly, (d) the provisions of section 42 shall apply and have effect as if the reference therein to any shop, house, premises or place licensed for refreshment, resort and entertainment were a reference to any shop, house, premises or place kept for refreshment, resort and entertainment.
\n
(3)This section shall come into operation on the 1st day of April, 1990.
\n
TABLE 6. All houses, rooms, shops, or buildings kept open for public refreshment, resort, and entertainment at any time between the hours of ten of the clock at night and seven of the clock of the following morning, not being licensed for the sale of beer, cider, wine, or spirits respectively, shall be deemed refreshment houses within this Act.
\n
Provisions relating to private brewers.
\n
51.—(1) In this section— “offered for sale” includes an invitation to treat; “private brewer” means a brewer of beer, not being a brewer for sale within the meaning of section 19 of the Inland Revenue Act, 1880 .
\n
(2)The duties of excise imposed by section 6 of the Finance Act, 1919 , upon a licence to be taken out annually by a private brewer shall not be charged or levied.
\n
(3)The duty of excise on beer imposed by paragraph 7 (1) of the Order of 1975 shall not be charged or levied on beer brewed by a private brewer, provided that the said beer is brewed by the said brewer solely for his own domestic use.
\n
(4)(a) Beer shall not be brewed by a private brewer otherwise than for his own domestic use and beer brewed by the said brewer shall not be sold or offered for sale by any person. (b) A person who contravenes the provisions of paragraph (a) shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £1,000 and any beer in respect of which the offence was committed and any vessels, utensils and materials for brewing in the possession of a private brewer of beer in respect of which the offence was committed shall be liable to forfeiture.
\n
(5)The following enactments are hereby repealed: (a) sections 13
\n
(2), 32 , 33 and 34 of the Inland Revenue Act, 1880 , (b) section 15 of the Customs and Inland Revenue Act, 1881 , and (c) section 6
\n
(2)of the Finance Act, 1919 .
\n
(6)This section shall come into operation on the 1st day of October, 1989.
\n
Excise duty on driving licences.
\n
52.—The Finance (Excise Duties) (Vehicles) Act, 1952 , is hereby amended by the substitution in section 4 (1A) (inserted by the Finance Act, 1961 ) of the following paragraphs for paragraphs (a) and (b) (inserted by the Finance Act, 1983 ): “(a) £4 for each year of the period of the licence, if that period is 3 years or less, and (b) £20 if the period of the licence is more than 3 years,”.
\n
PART III
\n
Value-Added Tax Interpretation (
\n
Part III
\n
).
\n
53.—In this Part— “the Principal Act” means the Value-Added Tax Act, 1972 ; “the Act of 1978” means the Value-Added Tax (Amendment) Act, 1978 ; “the Act of 1985” means the Finance Act, 1985 ; “the Act of 1988” means the Finance Act, 1988 .
\n
Amendment of section 5 (supply of services) of Principal Act.
\n
54.—Section 5 (inserted by the Act of 1978) of the Principal Act is hereby amended by the insertion after subsection (4A) (inserted by the Finance Act, 1982 ) of the following subsection: “(4B) Where a person is indemnified under a policy of insurance in respect of any amount payable in respect of services of a barrister or solicitor, those services shall be deemed, for the purposes of this Act, to be supplied to, and received by, the said person.”.
\n
Amendment of section 8 (accountable persons) of Principal Act.
\n
55.—Section 8 of the Principal Act is hereby amended— (a) in subsection (3) (inserted by the Act of 1978) by the substitution— (i) in paragraph (b) (inserted by the Finance Act, 1982 ) of “£15,000” for “£12,000” (inserted by the Finance Act, 1983 ), (ii) in paragraph (c) (inserted by the Finance (No. 2) Act, 1981) of “£32,000” for “£25,000” (inserted by the Finance Act, 1983 ), and (iii) in paragraph (e) (inserted by the Finance Act, 1984 ) of “£15,000” for “£12,000”, (b) in subsection (3A) (inserted by the Finance Act, 1982 ), by the substitution of “£15,000” for “£12,000” (inserted by the Finance Act, 1983 ), and (c) in subsection (9) (inserted by the Act of 1978), in the definition of “farmer” (inserted by the Finance Act, 1982 ), by the substitution of “£15,000” for “£12,000” (inserted by the Finance Act, 1983 ) in each place where it occurs.
\n
Amendment of section 11 (rates of tax) of Principal Act.
\n
56.—Section 11 of the Principal Act is hereby amended in subsection (1) (inserted by the Act of 1985)— (a) by the substitution of the following paragraph for paragraph (bb) (inserted by the Act of 1988): “(bb) 5 per cent. of the amount on which tax is chargeable in relation to the supply of electricity:
\n
Provided that this paragraph shall not apply to the distribution of any electricity where such distribution is wholly or mainly in connection with the distribution of communications signals,”, and (b) by the substitution in paragraph (d) of “2 per cent.” for “1.4 per cent.” (inserted by the Act of 1988).
\n
Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.
\n
57.—Section 12A (inserted by the Act of 1978) of the Principal Act is hereby amended by the substitution in subsection (1) of “2 per cent.” for “1.4 per cent.” (inserted by the Act of 1988).
\n
Amendment of section 19 (tax due and payable) of Principal Act.
\n
58.—Section 19 of the Principal Act is hereby amended in subsection (3) (inserted by the Finance Act, 1983 ) by the insertion after paragraph (a) of the following paragraph: “(aa) (i) In this paragraph: ‘accounting period’ means a period, as determined by the Collector-General from time to time in any particular case, consisting of a number of consecutive taxable periods not exceeding six; ‘authorised person’ means a taxable person who has been authorised in writing by the Collector-General for the purposes of this paragraph and ‘authorise’ and ‘authorisation’ shall be construed accordingly. (ii) Notwithstanding the provisions of paragraph (a)— (I) the Collector-General may, from time to time, authorise in writing a taxable person for the purposes of this paragraph, unless the taxable person objects in writing to the authorisation, and (II) an authorised person may, within nine days immediately after the tenth day of the month immediately following an accounting period furnish to the Collector-General a true and correct return prepared in accordance with regulations of the amount of tax which became due by him during the taxable periods which comprise the accounting period, not being tax already paid by him in relation to goods imported by him, and, the amount, if any, which may be deducted in accordance with section 12 in computing the amount of tax payable by him in respect of such taxable periods and such other particulars as may be specified in regulations, and at the same time remit to the Collector-General any amount of tax payable by him in respect of such taxable periods, and, where the authorised person concerned so furnishes and remits, he shall be deemed to have complied with the provisions of paragraph (a) in relation to the said taxable periods. (iii) For the purposes of issuing an authorisation to a taxable person, the Collector-General shall, where he considers it appropriate, have regard to the following matters— (I) he has reasonable grounds to believe that— (A) the authorisation will not result in a loss of tax, and (B) the taxable person will meet all his obligations under the authorisation, and (II) the taxable person has— (A) been a registered person during all of the period consisting of the six taxable periods immediately preceding the period in which an authorisation would, if it were issued, have effect, and (B) complied with the provisions of paragraph (a). (iv) An authorisation may— (I) be issued either without conditions or subject to such conditions as the Collector-General, having regard in particular to the considerations mentioned in subparagraph (iii), considers proper and specifies in writing to the taxable person concerned when issuing the authorisation,
\n
(II) without prejudice to the generality of the foregoing, require an authorised person to remit to the Collector-General, within nine days immediately after the tenth day of the month immediately following each taxable period (other than the final taxable period) which is comprised in an accounting period, such an amount as may be specified by the Collector-General. (v) The Collector-General may, by notice in writing, terminate an authorisation and, where a taxable person requests him to do so, he shall terminate the authorisation. (vi) For the purposes of terminating an authorisation the Collector-General shall, where he considers it appropriate, have regard to the following matters: (I) he has reasonable grounds to believe that the authorisation has resulted or could result in a loss of tax, or (II) the taxable person— (A) has furnished, or there is furnished on his behalf, any incorrect information for the purposes of the issue to him of an authorisation, or (B) has not complied with the provisions of paragraph (a) or of this paragraph, including the conditions, if any, specified by the Collector-General under subparagraph (iv) in relation to the issue to him of an authorisation. (vii) In relation to any taxable period in respect of which he has not complied with the provisions of paragraph (a), a person whose authorisation is terminated shall be deemed to have complied with paragraph (a) if, within twenty-one days of issue to him of a notice of termination, he furnishes to the Collector-General the return specified in paragraph (a) and at the same time remits to the said Collector-General the amount of tax payable by him in accordance with that paragraph. (viii) (I) An authorisation shall be deemed to have been terminated by the Collector-General on the date that an authorised person— (A) ceases to trade (except for the purposes of disposing of the stocks and assets of his business), whether for reasons of insolvency or any other reason, (B) being a body corporate, goes into liquidation, whether voluntarily or not, or (C) ceases to be a taxable person or a registered person, dies or becomes bankrupt. (II) A taxable person to whom this subparagraph relates shall, in relation to any taxable period (or part of a taxable period) comprised in the accounting period which was in operation in his case on the date to which clause (I) of this subparagraph relates, be deemed to have complied with paragraph (a) if he furnishes to the Collector-General the return specified in subparagraph (ii) (II) and at the same time remits to the said Collector-General the amount of tax payable by him for the purposes of that subparagraph as if he were an authorised person whose accounting period ended on the last day of the taxable period during which the termination occurred:
\n
Provided that the personal representative of a person who was an authorised person shall be deemed to be the taxable person concerned.”.
\n
Amendment of section 20 (refund of tax) of Principal Act.
\n
59.—Section 20 (3) (as amended by the Act of 1978) of the Principal Act is hereby amended in paragraph (a) by the substitution of “shall, in relation to the supply to such person of goods or services of a kind so specified”, for “in relation to the supply to such person of goods or services of a kind so specified shall”, and the said paragraph (a), as so amended, is set out in the Table to this section.
\n
TABLE
\n
(3)(a) The Minister may by order provide that a person who fulfils to the satisfaction of the Revenue Commissioners such conditions as may be specified in the order shall, in relation to the supply to such person of goods or services of a kind so specified, be entitled to be repaid so much, as is specified in the order, of any tax borne or paid by him in relation to such supply as does not qualify for deduction under section 12 in computing his liability to tax.
\n
Amendment of section 32 (regulations) of Principal Act.
\n
60.—Section 32 of the Principal Act is hereby amended in subsection (2A) (inserted by the Act of 1978) by the substitution of “, subsection (6) or (7) of section 15 or paragraph (ia) of the Sixth Schedule” for “or subsection (6) or (7) of section 15”.
\n
Amendment of First Schedule to Principal Act.
\n
61.—The First Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended— (a) by the insertion of the following subparagraph after subparagraph (g) of paragraph (i) (inserted by the Finance Act, 1987 ): “(gg) the management of an undertaking which is a collective investment undertaking within the meaning of section 18 of the Finance Act, 1989, other than services specified in subparagraph (g);”, (b) by the substitution of the following paragraph for paragraph (iii): “(iii) professional services of a medical nature, other than services specified in paragraph (iiib), but excluding such services supplied in the course of carrying on a business which consists in whole or in part of selling goods;”, (c) by the insertion after paragraph (iiia) (inserted by the Finance Act, 1986 ) of the following paragraph: “(iiib) professional services of a dental or optical nature;”, and (d) by the substitution in paragraph (ix) of “subparagraph (g) or (gg) of paragraph (i)” for “paragraph (i) (g)”.
\n
Amendment of Second Schedule to Principal Act.
\n
62.—The Second Schedule (inserted by the Finance Act, 1976 ) to the Principal Act is hereby amended by the insertion in subparagraph (b) of paragraph (xixa) (inserted by the Value-Added Tax (Reduction of Rate) (No. 5) Order, 1981 (S.I. No. 53 of 1981)), after “teeth”, of “, corrective spectacles and contact lenses”.
\n
Amendment of Sixth Schedule to Principal Act.
\n
63.—The Sixth Schedule (inserted by the Act of 1985) to the Principal Act is hereby amended— (a) by the insertion of the following paragraphs after paragraph (i): “(ia) every work of art being— (a) a painting, drawing or pastel, or any combination thereof, executed entirely by hand, excluding hand-decorated manufactured articles and plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, (b) an original lithograph, engraving, or print, or any combination thereof, produced directly from lithographic stones, plates or other engraved surfaces, which are executed entirely by hand, (c) an original sculpture or statuary, excluding mass-produced reproductions and works of craftsmanship of a commercial character, or (d) subject to and in accordance with regulations, an article of furniture, silver, glass or porcelain, whether hand-decorated or not, specified in the said regulations, where it is shown to the satisfaction of the Revenue Commissioners to be more than 100 years old, other than goods specified in subparagraph (a), (b) or (c); (ib) literary manuscripts certified by the Director of the National Library as being of major national importance and of either cultural or artistic importance;”, and (b) by the insertion of the following paragraph after paragraph (ix): “(ixa) corrective spectacles and contact lenses, including parts thereof;”.
\n
PART IV
\n
Stamp Duties Levy on banks.
\n
64.—(1) In this section— “assessable amount” means the amount arrived at by dividing the specified amount by twelve and deducting £12,000,000 from the quotient; “bank” means a person who, on the 1st day of September, 1988, was the holder of a licence granted under section 9 of the Central Bank Act, 1971 ; “relevant sum”, in relation to a return, means a sum shown in the return other than a sum shown in respect of foreign currency; “returns”, in relation to a bank, means the returns, entitled “MONTHLY RETURN OF ALL LICENSED BANKS: RESIDENT BRANCHES”, furnished to the Central Bank of Ireland by the bank in respect of the assets and liabilities of the bank as on the 20th day of January, 1988, the 17th day of February, 1988, the 31st day of March, 1988, the 20th day of April, 1988, the 18th day of May, 1988, the 30th day of June, 1988, the 20th day of July, 1988, the 17th day of August, 1988, the 30th day of September, 1988, the 19th day of October, 1988, the 16th day of November, 1988, and the 31st day of December, 1988; “specified amount”, in relation to a bank, means the amount obtained by deducting the aggregate amount of the relevant sums shown in respect of Item 302.2 in supplement 1 of the returns of the bank from the aggregate amount of the relevant sums shown in the returns in respect of Government deposits and Non-Government deposits and shown as liabilities of the bank in such returns.
\n
(2)A bank shall, not later than the 13th day of September, 1989, deliver to the Revenue Commissioners a statement in writing showing the assessable amount for that bank, the specified amount for that bank and the sums referred to in the definition of “specified amount” in subsection (1) by reference to which that specified amount was calculated.
\n
(3)There shall be charged on every statement delivered pursuant to subsection (2) a stamp duty of an amount equal to the sum of the following: (a) 0.31 per cent. of that part of the assessable amount shown therein that does not exceed £120,000,000, and (b) 0.423 per cent. of that part of the assessable amount shown therein that exceeds £120,000,000:
\n
Provided that in the case where the assessable amount shown in the statement does not exceed £120,000,000, stamp duty of an amount equal to 0.31 per cent. of the assessable amount shown therein shall be charged.
\n
(4)The duty charged by subsection (3) upon a statement delivered by a bank pursuant to subsection (2) shall be paid by the bank upon delivery of the statement.
\n
(5)There shall be furnished to the Revenue Commissioners by a bank such particulars as the Revenue Commissioners may deem necessary in relation to any statement required by this section to be delivered by the bank.
\n
(6)In the case of failure by a bank to deliver any statement required by subsection (2) within the time provided for in that subsection or of failure to pay the duty chargeable on any such statement on the delivery thereof, the bank shall, from the date of the passing of this Act until the day on which the duty is paid, be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 15 per cent. per annum and also from the 13th day of September, 1989, by way of further penalty, a sum equal to 1 per cent. of the duty for each day the duty remains unpaid and each penalty shall be recoverable in the same manner as if the penalty were part of the duty.
\n
(7)The delivery of any statement required by subsection (2) may be enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853 , in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.
\n
(8)The stamp duty charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty under the care and management of the Revenue Commissioners payable by the bank.
\n
Exemption from stamp duty of certain instruments (Custom House Docks Development Authority).
\n
65.—No stamp duty shall be chargeable on any instrument under which any land, easement, way-leave, water right or other right whatsoever over or in respect of the land or water is acquired by the Custom House Docks Development Authority.
\n
Exemption from stamp duty of certain instruments (Housing Finance Agency p.l.c.).
\n
66.—(1) No stamp duty shall be chargeable on any agreement or other instrument made for the purposes of, or in connection with, securing the advancement of moneys to housing authorities by the Agency.
\n
(2)In this section— “the Agency” means the Housing Finance Agency p.l.c., being the body formerly known as the Housing Finance Agency; “housing authority” means a housing authority within the meaning of the Housing Act, 1966 .
\n
(3)This section shall have effect with respect to instruments executed on or after the 1st day of November, 1986.
\n
Amendment of section 27 of Stamp Duties Management Act, 1891.
\n
67.—Section 27 of the Stamp Duties Management Act, 1891, is hereby amended— (a) by the substitution of the following for the definition of the expression “die”: “The expression ‘die’ includes any plate, type, tool, implement, apparatus, appliance, device, process and any other means whatsoever, used by or under the direction of the Commissioners for expressing or denoting any duty, or rate of duty or the fact that any duty or rate of duty or penalty has been paid or that an instrument is duly stamped or is not chargeable with any duty or for denoting any fee, and also any part or combination of any such plate, type, tool, implement, apparatus, appliance, device, process and any such other means:”; (b) by the substitution of the following for the definition of the expression “stamp”: “The expression ‘stamp’ means— (a) any stamp, image, type, mark, seal, impression, imprint or perforation, whatsoever, impressed by means of a die, or (b) any receipt in whatever form issued by or under the direction of the Commissioners, or (c) an adhesive stamp issued by or under the direction of the Commissioners, for denoting any duty or fee:”; (c) by the insertion of the following after the definition of the expression “stamped”: “The expression ‘impressed’ includes any method of applying, producing or indicating a stamp on instruments or material by means of a die:”.
\n
Amendment of section 122 of Stamp Act, 1891.
\n
68.—Section 122 of the Stamp Act, 1891, is hereby amended— (a) by the substitution of the following for the definition of the expression “stamp”: “The expression ‘stamp’ means— (a) any stamp, image, type, mark, seal, impression, imprint or perforation, whatsoever, impressed by means of a die, or (b) any receipt in whatever form issued by or under the direction of the Commissioners, or (c) an adhesive stamp issued by or under the direction of the Commissioners, for denoting any duty or fee:”; (b) by the insertion of the following after the definition of the expression “stamped”: “The expression ‘die’ includes any plate, type, tool, implement, apparatus, appliance, device, process and any other means whatsoever, used by or under the direction of the Commissioners for expressing or denoting any duty, or rate of duty or the fact that any duty or rate of duty or penalty has been paid or that an instrument is duly stamped or is not chargeable with any duty or for denoting any fee, and also any part or combination of any such plate, type, tool, implement, apparatus, appliance, device, process and any such other means:
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The expression ‘impressed’ includes any method of applying, producing or indicating a stamp on instruments or material by means of a die:”.
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Amendment of Forgery Act, 1913.
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69.—The Forgery Act, 1913, is hereby amended— (a) in section 8 (2) (b), by the insertion of “(as amended by the Finance Act, 1989)” after “Stamp Duties Management Act, 1891”, and (b) in section 18, by the insertion of the following subsection after subsection (1): “(1A) Notwithstanding subsection (1) of this section, the expressions ‘die’ and ‘stamp’, when used in this Act in relation to the Revenue Commissioners, have the same meanings, respectively, as are assigned to them by the Stamp Duties Management Act, 1891 (as amended by the Finance Act, 1989).”.
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Relief from transfer stamp duty in the case of reconstructions or amalgamations of certain companies.
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70.—(1) (a) Where in the course of a bona fide reconstruction or amalgamation of companies which, except for the fact that the transferee company is not registered in the State but is duly registered in another Member State of the European Economic Community, is in accordance with the provisions of section 31 of the Finance Act, 1965 — (i) the transferee company acquires all of the issued share capital of a particular existing company and the consideration for the acquisition consists wholly of the issue of shares in the transferee company to the holders of shares in the existing company in exchange for the shares held by them in the existing company, and (ii) the particular existing company and the transferee company are shown to the satisfaction of the Revenue Commissioners to be wholly owned subsidiaries of the same holding company, then stamp duty under the heading “CONVEYANCE or TRANSFER on sale” in the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891, shall not be chargeable on any instrument made for the purposes of or in connection with the transfer of the shares. (b) In this section “holding company” and “subsidiaries” have the same meanings as they have in the Companies Act, 1963 .
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(2)This section shall have effect with respect to instruments executed on or after the 20th day of December, 1988.
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Amendment of section 44 (exemption from stamp duty of certain stock) of Finance Act, 1970.
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71.—(1)
\n
Section 44
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of the Finance Act, 1970 , is hereby amended by the substitution of the following subsection for subsection (1): “(1) In this section ‘stock’ means— (a) any loan stock of a company registered or established in the State or a Board established by or under an Act of the Oireachtas or the Oireachtas of Saorstát Éireann the payment of the interest on which is guaranteed by the Minister for Finance, or (b) any loan stock of the Electricity Supply Board, Radio Telefís Éireann, Industrial Credit Corporation p.l.c., Bord Telecom Éireann or Irish Telecommunications Investments p.l.c. to which paragraph (a) of this subsection does not apply.”.
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(2)This section shall have effect with respect to instruments executed on or after the 27th day of June, 1988.
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Amendment of First Schedule to Stamp Act, 1891.
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72.—The First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891, is hereby amended under the heading “LEASE”— (a) by the substitution of the following paragraph for paragraph (1): “(1) For any indefinite term or any term not exceeding 35 years:
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Of any dwelling-house, part of a dwelling-house, or apartment at a rent not exceeding £6,000 per annum Exempt”, and (b) by the deletion of subparagraph (a) of paragraph (2).
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PART V
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Capital Acquisitions Tax
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Chapter I
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General Interpretation (Part V).
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73.—In this Part “the Principal Act” means the Capital Acquisitions Tax Act, 1976 .
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Chapter II
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Arrangements with regard to Returns and Assessments Delivery of returns.
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74.—The Principal Act is hereby amended by the substitution for section 36 of the following section— “36.— (1) In this section— (a) notwithstanding anything contained in sections 6 and 12— (i) a reference to a taxable gift is a reference to a taxable gift taken on or after the 28th day of February, 1974; (ii) a reference to a taxable inheritance is a reference to a taxable inheritance taken on or after the 1st day of April, 1975; and (iii) a reference, other than in subparagraph (i), to a gift or a taxable gift includes a reference to an inheritance or a taxable inheritance, as the case may be; and (b) a reference to a donee includes a reference to a successor.
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(2)Any person who is primarily accountable for the payment of tax by virtue of section 35 (1), or by virtue of paragraph (c) of section 107 of the Finance Act, 1984 , shall, within four months after the relevant date referred to in subsection (5)— (a) deliver to the Commissioners a full and true return of— (i) every gift in respect of which he is so primarily accountable; (ii) all the property comprised in such gift on the valuation date; (iii) an estimate of the market value of such property on the valuation date; and (iv) such particulars as may be relevant to the assessment of tax in respect of such gift; (b) notwithstanding the provisions of section 39, make on that return an assessment of such amount of tax as, to the best of his knowledge, information and belief, ought to be charged, levied and paid on that valuation date; and (c) duly pay the amount of such tax.
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(3)The provisions of subsection (2) (c) shall be complied with— (a) where the tax due and payable in respect of any part of the gift is being paid by instalments under the provisions of section 43, by the due payment of— (i) an amount which includes any instalment of tax which has fallen due prior to or on the date of the assessment of the tax referred to in subsection (2) (b); and (ii) any further instalments of such tax on the due dates in accordance with that section; (b) where the tax due and payable is inheritance tax whichis being wholly or partly paid by the transfer of securities to the Minister for Finance under the provisions of section 45, by— (i) delivering to the Commissioners with the return an application to pay all or part of the tax by such transfer; (ii) completing the transfer of the securities to the Minister for Finance within such time, not being less than 30 days, as may be specified by the Commissioners by notice in writing; and (iii) duly paying the excess, if any, of the amount of the tax referred to in subsection (2) (b), or in paragraph (a) (i), over the nominal face value of the securities tendered in payment of the tax in accordance with the provisions of subparagraph (i).
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(4)Subsection (2) applies to a charge for tax arising by reason of the provisions of section 106 of the Finance Act, 1984 , and to any other gift where— (a) so far as it is a taxable gift taken before the 2nd day of June, 1982— (i) the taxable value of such gift exceeds an amount which is 80 per cent. of the lowest value upon which, at the date of such gift, tax becomes chargeable in respect of a gift taken by the donee of such gift from the disponer thereof; (ii) the taxable value of such gift falls to be aggregated with previous gifts taken by the donee of such gift from the disponer thereof and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from such disponer from an amount which is less than or equal to the amount specified in subparagraph (i) to an amount which exceeds the amount so specified; or (iii) the taxable value of such gift falls to be aggregated with previous gifts taken by the donee of such gift from the disponer thereof and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from such disponer from an amount which is greater than the amount specified in subparagraph (i); and, in this paragraph— (I) any reference to the total taxable value of all taxable gifts includes a reference to the total aggregable value of all aggregable gifts; (II) ‘aggregable gift’ and ‘aggregable value’ have the meanings assigned to them by paragraph 1 of Part I of the Second Schedule; (b) so far as it is a taxable gift taken on or after the 2nd day of June, 1982, and before the 26th day of March, 1984— (i) the taxable value of such gift exceeds an amount which is 80 per cent. of the lowest value upon which, at the date of such gift, tax becomes chargeable in respect of a gift taken by the donee of such gift from the disponer thereof; (ii) the taxable value of such gift falls to be aggregated with gifts taken by the donee of such gift, either on or before the date of such gift, from any disponer and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from any disponer from an amount which is less than or equal to the amount specified in subparagraph (i) to an amount which exceeds the amount so specified; or (iii) the taxable value of such gift falls to be aggregated with gifts taken by the donee of such gift, either on or before the date of such gift, from any disponer and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from any disponer from an amount which is greater than the amount specified in subparagraph (i);
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(c) so far as it is a taxable gift taken on or after the 26th day of March, 1984, the aggregate of the taxable values of all taxable gifts taken by the donee on or after the 2nd day of June, 1982, exceeds an amount which is 80 per cent. of the threshold amount (as defined in the Second Schedule) which applies in the computation of the tax on that aggregate; or (d) the donee or, in a case to which section 23 (1) applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return, and, for the purposes of this subsection, a reference to a gift or a taxable gift includes a reference to a part of a gift or to a part of a taxable gift, as the case may be.
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(5)For the purposes of this section, the relevant date shall be— (a) the valuation date or the 1st day of September, 1989, whichever is the later; or (b) where the donee or, in a case to which section 23 (1) applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return, the date of the notice.
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(6)Any person who is accountable for the payment of tax by virtue of subsection (2) or (9) of section 35 shall, if he is required by notice in writing by the Commissioners to do so, comply with the provisions of paragraphs (a), (b) and (c) of subsection (2) of this section (as if he were a person primarily accountable for the payment of tax by virtue of section 35 (1)) within such time, not being less than 30 days, as may be specified in the notice.
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(7)(a) Any accountable person shall, if he is so required by the Commissioners by notice in writing, deliver and verify to the Commissioners within such time, not being less than 30 days, as may be specified in the notice— (i) a statement (where appropriate, on a form provided, or approved of, by them) of such particulars relating to any property; and (ii) such evidence as they require, as may, in their opinion, be relevant to the assessment of tax in respect of the gift. (b) The Commissioners may authorise a person to inspect— (i) any property comprised in a gift; or (ii) any books, records, accounts or other documents, in whatever form they are stored, maintained or preserved, relating to any property as may in their opinion be relevant to the assessment of tax in respect of a gift, and the person having the custody or possession of that property, or of those books, records, accounts or documents, shall permit the person so authorised to make that inspection at such reasonable times as the Commissioners consider necessary.
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(8)The Commissioners may by notice in writing require any accountable person to— (a) deliver to them within such time, not being less than 30 days, as may be specified in the notice, an additional return, if it appears to the Commissioners that a return made by that accountable person is defective in a material respect by reason of anything contained in or omitted from it; (b) notwithstanding the provisions of section 39, make on that additional return an assessment of such amended amount of tax as, to the best of his knowledge, information and belief, ought to be charged, levied and paid on the relevant gift; and (c) duly pay the outstanding tax, if any, for which he is accountable in respect of that gift; and (i) the requirements of subparagraphs (ii), (iii) and (iv) of subsection (2) (a) shall apply to such additional return required by virtue of paragraph (a); and (ii) the provisions of subsection (3) shall, with any necessary modifications, apply to any payment required by virtue of paragraph (c).
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(9)Where any accountable person who has delivered a return or an additional return is aware or becomes aware at any time that the return or additional return is defective in a material respect by reason of anything contained in or omitted from it, he shall, without application from the Commissioners and within three months of so becoming aware— (a) deliver to them an additional return; (b) notwithsanding the provisions of section 39, make on that additional return an assessment of such amended amount of tax as, to the best of his knowledge, information and belief, ought to be charged, levied and paid on the relevant gift; and (c) duly pay the outstanding tax, if any, for which he is accountable in respect of that gift; and (i) the requirements of subparagraphs (ii), (iii) and (iv) of subsection (2) (a) shall apply to such additional return required by virtue of paragraph (a); and (ii) the provisions of subsection (3) shall, with any necessary modifications, apply to any payment required by virtue of paragraph (c).
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(10)Any amount of tax payable by an accountable person in respect of an assessment of tax made by him on a return delivered by him (other than an amount of that tax payable by the transfer of securities to the Minister for Finance under the provisions of section 45) shall accompany the return and be paid to the Accountant-General of the Commissioners.
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(11)Any assessment or payment of tax made under the provisions of this section shall include interest upon tax payable in accordance with the provisions of section 41.”.
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Application of section 39 (assessment of tax) of Principal Act.
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75.—Nothing in section 36 of the Principal Act shall preclude the Commissioners from making an assessment of tax, a correcting assessment of tax, or an additional assessment of tax, under the provisions of section 39 of that Act.
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Amendment of section 41 (payment of tax and interest on tax) of Principal Act.
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76.—(1) Section 41 of the Principal Act is hereby amended by the substitution for subsection (3) of the following subsection: “(3) Notwithstanding the provisions of subsection (2), interest shall not be payable on tax which is paid within three months of the valuation date, and where tax and interest, if any, thereon is paid within thirty days of the date of assessment thereof, interest shall not run on that tax for the period of thirty days from the date of the assessment or any part of that period:
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Provided that, in relation to an assessment of tax made by an accountable person on a return delivered by him, interest shall not be payable on tax which is paid within four months of the valuation date.”.
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(2)A payment by an accountable person of tax shall be treated as a payment on account of tax for the purposes of section 41 of the Principal Act, notwithstanding that the payment may be conditional or that the assessment of tax is incorrect.
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Amendment of section 63 (penalties) of Principal Act.
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77.—Section 63 of the Principal Act is hereby amended— (a) by the substitution for subsection (1) of the following subsection: “(1) (a) Any person who contravenes or fails to comply with any requirement or provision under section 36 shall be liable to a penalty of £2,000. (b) Where the contravention or failure referred to in paragraph (a) continues after judgment has been given by the court before which proceedings for the penalty have been commenced, the person concerned shall be liable to a further penalty of £25 for each day on which the contravention or failure so continues.”, (b) by the substitution for “£500” of “£1,000” in subsection (2), (c) by the substitution for “£1,000” of “£5,000” in subsection (3), and (d) by the substitution for “£250” of “£1,000” in subsection (7).
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Amendment of section 107 (application of Principal Act) of Finance Act, 1984.
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78.—
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Section 107
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of the Finance Act, 1984 , is hereby amended— (a) by the deletion of paragraph (e), and (b) by the substitution for paragraph (g) of the following paragraph: “(g) sections 35 (1), 40, 45 and 57 of, and the Second Schedule to, the Principal Act shall not apply.”.
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Surcharge for undervaluation of property.
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79.—(1) Where— (a) an accountable person delivers a return, and (b) the estimate of the market value of any asset comprised in a gift or inheritance and included in that return, when expressed as a percentage of the ascertained value of that asset, is within any of the percentages specified in column (1) of the Table to this section, then the amount of tax attributable to the property which is that asset shall be increased by a sum (hereafter in this section referred to as the “surcharge”) equal to the corresponding percentage, set out in column (2) of that Table opposite the relevant percentages in the said column (1), of that amount of tax.
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(2)Interest shall be payable under the provisions of section 41 of the Principal Act upon any surcharge as if the surcharge were tax, and the surcharge and any interest thereon shall be chargeable and recoverable as if the surcharge and that interest were part of the tax.
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(3)Any person aggrieved by the imposition on him of a surcharge under this section in respect of any asset may, within 30 days of the notification to him of the amount of such surcharge, appeal to the Appeal Commissioners against the imposition of such surcharge on the grounds, and only on the grounds, that, having regard to all the circumstances, there were sufficient grounds on which he might reasonably have based his estimate of the market value of the asset.
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(4)The Appeal Commissioners shall hear and determine an appeal to them under subsection (3) as if it were an appeal to them against an assessment to tax, and the provisions of section 52 of the Principal Act relating to an appeal or to the rehearing of an appeal or to the statement of a case for the opinion of the High Court on a point of law shall, with any necessary modifications, apply accordingly.
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(5)In this section “ascertained value” means the market value subject to the right of appeal under section 51 or section 52 of the Principal Act.
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TABLE Estimate of the market value of the asset in the return, expressed as a percentage of the ascertained value of that asset Surcharge
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(1)
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(2)Equal to or greater than 0 per cent. but less than 40 per cent.
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30 per cent.
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Equal to or greater than 40 per cent. but less than 50 per cent.
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20 per cent.
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Equal to or greater than 50 per cent. but less than 67 per cent.
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10 per cent.
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Chapter III
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Miscellaneous Amendment of section 2 (interpretation) of Principal Act.
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80.—(1) Section 2 of the Principal Act is hereby amended— (a) in the definition of “child” in subsection (1), by the substitution for “the Adoption Acts, 1952 to 1974” of “the Adoption Acts, 1952 to 1988” in each place where it occurs, and (b) in subsection (5), by the substitution for “the Adoption Acts, 1952 to 1974” of “the Adoption Acts, 1952 to 1988” in both places where it occurs.
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(2)This section shall have effect as respects gifts and inheritances taken on or after the 26th day of July, 1988.
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Extension of section 35 (accountable persons) of Principal Act.
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81.—(1) In the case of an inheritance taken on or before the date of death of the disponer, the disponer shall also be a person accountable for the payment of any amount of the tax for which the persons referred to in section 35 (1) of the Principal Act are made primarily accountable, and, subject to subsection (2), the Principal Act shall have effect as if such disponer were a person referred to in section 35 (2) (b) of that Act:
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Provided that the disponer as such shall not be so accountable in the case where the date of the disposition was prior to the 1st day of May, 1989.
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(2)The provisions of subsections (3) and (9) of section 35 of the Principal Act shall not apply to a disponer who is accountable for the payment of tax under subsection (1).
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Amendment of section 37 (signing of returns, etc.) of Principal Act.
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82.—Section 37 of the Principal Act is hereby amended by the substitution for subsection (4) of the following subsection: “(4) (a) A return or additional return delivered under this Act shall— (i) be made on a form provided, or approved of, by the Commissioners, or (ii) except in a case to which subsection (2) relates but in a case where subsection (3) applies, be in a form approved of by the Commissioners and delivered by any electronic, photographic or other process approved of by them and in circumstances where the use of such process has been agreed by them and subject to such conditions as they may impose. (b) An affidavit, additional affidavit, account or additional account, delivered under this Act, shall be made on a form provided, or approved of, by the Commissioners.”.
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Amendment of Second Schedule to Principal Act.
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83.—(1) Part I of the Second Schedule to the Principal Act is hereby amended by the substitution for paragraph 9 of the following paragraph: “9. (1) In this paragraph— ‘company’ means a company which— (a) is a private trading company within the meaning assigned by section 16 (2); and (b) for the relevant period, is such a company— (i) controlled by the disponer; and (ii) where the disponer is a director thereof; ‘company controlled by the disponer’ means a company that is under the control of any one or more of the following, that is to say— (a) the disponer, (b) nominees of the disponer, (c) the trustees of a settlement made by the disponer; ‘control’, in relation to a company, shall be construed in accordance with section 16 (4) (b); ‘nominee’ has the same meaning as it has in section 16; ‘relevant period’ means— (a) the period of five years ending on the date of the disposition; or (b) where, at the date of the disposition, (i) an interest in possession in— (I) the property referred to in subparagraph (2) (a), or (II) the shares referred to in subparagraph (2) (b), as the case may be, is limited to the disponer under the disposition, and (ii) such property is not, or such shares are not, property consisting of the appropriate part of property, within the meaning of section 5 (5), on which is charged or secured an annuity or other annual right limited to cease on the death of the disponer, the period of five years ending on the coming to an end of that interest, subject, in relation to work, to the exclusion of reasonable periods of annual or sick leave from that period of five years.
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(2)For the purpose of computing the tax payable on a gift or inheritance, the donee or successor shall be deemed to bear to the disponer the relationship of a child in any case where the donee or successor is a child of a brother, or a child of a sister, of the disponer and either— (a) the donee or successor has worked substantially on a full-time basis for the disponer for the relevant period in carrying on, or in assisting in carrying on, the trade, business or profession of the disponer, and the gift or inheritance consists of property which was used in connection with that business, trade or profession; or (b) the donee or successor has worked substantially on a full-time basis for a company for the relevant period in carrying on, or in assisting in carrying on, the trade, business or profession of the company, and the gift or inheritance consists of shares in that company.
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(3)Without prejudice to the generality of subparagraph (2), a donee or successor shall not be deemed to be working substantially on a full-time basis for a disponer or a company unless— (a) where the gift or inheritance consists of property which was used in connection with the business, trade or profession of the disponer, the donee or successor works— (i) more than 24 hours a week for the disponer, at a place where that business, trade or profession, is carried on; or (ii) more than 15 hours a week for the disponer, at a place where that business, trade or profession is carried on, and such business, trade or profession is carried on exclusively by the disponer, any spouse of the disponer, and the donee or successor; or (b) where the gift or inheritance consists of shares in the company, the donee or successor works— (i) more than 24 hours a week for the company, at a place where the business, trade or profession of the company is carried on; or (ii) more than 15 hours a week for the company, at a place where the business, trade or profession of the company is carried on, and such business, trade or profession is carried on exclusively by the disponer, any spouse of the disponer, and the donee or successor.
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(4)The provisions of this paragraph shall not apply to a gift or inheritance taken by a donee or successor under a discretionary trust.”.
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(2)This section shall have effect as respects gifts and inheritances taken on or after the 1st day of May, 1989.
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Amendment of section 60 (relief in respect of certain policies of insurance) or Finance Act, 1985.
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84.—
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Section 60
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of the Finance Act, 1985 , is hereby amended by the insertion of the following subsection after subsection (1): “(1A) In this section ‘insured’ means an individual or, in relation to a qualifying insurance policy where— (a) the insured is an individual and the spouse of that individual at the date the policy is effected; (b) annual premiums are paid by either or both of them during their joint lives, and by the survivor of them during the life of such survivor; and (c) the proceeds of the policy are payable on the death of such survivor, or on the simultaneous deaths of both such spouses, means— (i) where the proceeds of the policy are so payable on the death of such survivor, that survivor, and the proceeds of the policy shall be deemed to have been provided by such survivor, as disponer; or (ii) where the proceeds of the policy are so payable on the simultaneous deaths of both such spouses, each of the spouses, and each such spouse shall be deemed to have provided the proceeds of the policy— (I) to the extent that such proceeds are applied in paying the relevant tax of the insured who is that spouse, and (II) where the proceeds of the policy are not applied in paying relevant tax, to the extent that the proceeds not so applied are comprised in an inheritance taken under a disposition made by that spouse.”.
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Exemption of specified collective investment undertakings.
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85.—(1) In this section “specified collective investment undertaking” and “unit” have, respectively, the same meanings as they have in section 18 .
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(2)Where any unit of a specified collective investment undertaking is comprised in a gift or an inheritance, then such unit— (a) shall be exempt from tax, and (b) shall not be taken into account in computing tax on any gift or inheritance taken by the donee or successor, if, but only if, it is shown to the satisfaction of the Commissioners that— (i) the unit is comprised in the gift or inheritance— (I) at the date of the gift or at the date of the inheritance; and (II) at the valuation date; (ii) at the date of the disposition— (I) the disponer is neither domiciled nor ordinarily resident in the State; or (II) the proper law of the disposition is not the law of the State; and (iii) at the date of the gift or at the date of the inheritance, the donee or successor is neither domiciled nor ordinarily resident in the State.
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(3)This section shall have effect as respects gifts and inheritances taken on or after the date of the passing of this Act.
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PART VI
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Anti-Avoidance Transactions to avoid liability to tax.
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86.—(1) (a) In this section— “the Acts” means— (i) the Tax Acts, (ii) the Capital Gains Tax Acts, (iii) the Value-Added Tax Act, 1972 , and the enactments amending or extending that Act, (iv) the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act, (v)
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Part VI
\n
of the Finance Act, 1983 , and the enactments amending or extending that Part, and (vi) the statutes relating to stamp duty, and any instrument made thereunder; “business” means any trade, profession or vocation; “notice of opinion” means a notice given by the Revenue Commissioners under the provisions of subsection (6); “tax” means any tax, duty, levy or charge which, in accordance with the provisions of the Acts, is placed under the care and management of the Revenue Commissioners and any interest, penalty or other amount payable pursuant to those provisions; “tax advantage” means— (i) a reduction, avoidance or deferral of any charge or assessment to tax, including any potential or prospective charge or assessment, or (ii) a refund of or a payment of an amount of tax, or an increase in an amount of tax, refundable or otherwise payable to a person, including any potential or prospective amount so refundable or payable, arising out of, or by reason of, a transaction, including a transaction where another transaction would not have been undertaken or arranged to achieve the results, or any part of the results, achieved or intended to be achieved by the transaction; “tax avoidance transaction” has the meaning assigned to it by subsection (2); “tax consequences” means, in relation to a tax avoidance transaction, such adjustments and acts as may be made and done by the Revenue Commissioners pursuant to subsection (5) in order to withdraw or deny the tax advantage resulting from the tax avoidance transaction; “transaction” means— (i) any transaction, action, course of action, course of conduct, scheme, plan or proposal, and (ii) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable or intended to be enforceable by legal proceedings, and (iii) any series of or combination of the circumstances referred to in paragraphs (i) and (ii), whether entered into or arranged by one person or by two or more persons— (I) whether acting in concert or not, or (II) whether or not entered into or arranged wholly or partly outside the State, or (III) whether or not entered into or arranged as part of a larger transaction or in conjunction with any other transaction or transactions. (b) In subsections (2) and (3), for the purposes of the hearing or rehearing under subsection (8) of an appeal made under subsection (7) or for the purposes of the determination of a question of law arising on the statement of a case for the opinion of the High Court, the references to the Revenue Commissioners shall, subject to any necessary modifications, be construed as references to the Appeal Commissioners or to a judge of the Circuit Court or, to the extent necessary, to a judge of the High Court, as appropriate.
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(2)For the purposes of this section and subject to subsection (3), a transaction is a “tax avoidance transaction” if, having regard to any one or more of the following, that is to say— (a) the results of the transaction, (b) its use as a means of achieving those results, and (c) any other means by which the results or any part of the results could have been achieved, the Revenue Commissioners form the opinion that— (i) it gives rise to, or, but for this section, would give rise to, a tax advantage, and (ii) the transaction was not undertaken or arranged primarily for purposes other than to give rise to a tax advantage, and references in this section to the Revenue Commissioners forming an opinion that a transaction is a tax avoidance transaction shall be construed as references to them forming an opinion with regard to the transaction in accordance with the provisions of this subsection.
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(3)Without prejudice to the generality of the provisions of subsection (2), in forming an opinion in accordance with that subsection and subsection (4), as to whether or not a transaction is a tax avoidance transaction, the Revenue Commissioners shall not regard the transaction as being a tax avoidance transaction if they are satisfied that— (a) notwithstanding that the purpose or purposes of the transaction could have been achieved by some other transaction which would have given rise to a greater amount of tax being payable by the person, the transaction— (i) was undertaken or arranged by a person with a view, directly or indirectly, to the realisation of profits in the course of the business activities of a business carried on by the person, and (ii) was not undertaken or arranged primarily to give rise to a tax advantage, or (b) the transaction was undertaken or arranged for the purpose of obtaining the benefit of any relief, allowance or other abatement provided by any provision of the Acts and that transaction would not result directly or indirectly in a misuse of the provision or an abuse of the provision having regard to the purposes for which it was provided:
\n
Provided that, in forming an opinion as aforesaid in relation to any transaction, the Revenue Commissioners shall have regard to— (I) the form of that transaction, (II) the substance of that transaction, (III) the substance of any other transaction or transactions which that transaction may reasonably be regarded as being directly or indirectly related to or connected with, and (IV) the final outcome and result of that transaction and any combination of those other transactions which are so related or connected.
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(4)Subject to the provisions of this section, the Revenue Commissioners, as respects any transaction, may, at any time— (a) form the opinion that the transaction is a tax avoidance transaction, (b) calculate the tax advantage which they consider arises, or which, but for this section, would arise, from the transaction, (c) determine the tax consequences which they consider would arise in respect of the transaction if their opinion were to become final and conclusive in accordance with subsection (5) (e), and (d) calculate the amount of any relief from double taxation which they would propose to give to any person in accordance with the provisions of subsection (5) (c).
\n
(5)(a) Where the opinion of the Revenue Commissioners that a transaction is a tax avoidance transaction becomes final and conclusive they may, notwithstanding any other provision of the Acts, make all such adjustments and do all such acts as are just and reasonable (in so far as those adjustments and acts have been specified or described in a notice of opinion given under subsection (6) and subject to the manner in which any appeal made under subsection (7) against any matter specified or described in the notice of opinion has been finally determined, including any adjustments and acts not so specified or described in the notice of opinion but which form part of a final determination of any appeal as aforesaid) in order that the tax advantage resulting from a tax avoidance transaction shall be withdrawn from or denied to any person concerned. (b) Subject to, but without prejudice to the generality of paragraph (a), the Revenue Commissioners may— (i) allow or disallow, in whole or in part, any deduction or other amount which is relevant in computing tax payable, or any part thereof, (ii) allocate or deny to any person any deduction, loss, abatement, relief, allowance, exemption, income or other amount, or any part thereof, or (iii) recharacterize for tax purposes the nature of any payment or other amount. (c) Where the Revenue Commissioners make any adjustment or do any act for the purposes of paragraph (a), they shall afford relief from any double taxation which they consider would, but for this paragraph, arise by virtue of any adjustment made or act done by them pursuant to the foregoing provisions of this subsection. (d) Notwithstanding any other provision of the Acts, where— (i) pursuant to subsection (4) (c), the Revenue Commissioners determine the tax consequences which they consider would arise in respect of a transaction if their opinion, that the transaction is a tax avoidance transaction, were to become final and conclusive, and (ii) pursuant to that determination, they specify or describe in a notice of opinion any adjustment or act which they consider would be, or be part of, the said tax consequences, then, in so far as any right of appeal lay under subsection (7) against any such adjustment or act so specified or described, no right or further right of appeal shall lie under the Acts against that adjustment or act when it is made or done in accordance with the provisions of this subsection or against any adjustment or act so made or done that is not so specified or described in the notice of opinion but which forms part of the final determination of any appeal made under the said subsection (7) against any matter specified or described in the notice of opinion.
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(e) For the purposes of this subsection an opinion of the Revenue Commissioners that a transaction is a tax avoidance transaction shall be final and conclusive— (i) if, within the time limited, no appeal is made under subsection (7) against any matter or matters specified or described in a notice or notices of opinion given pursuant to that opinion, or (ii) as and when all appeals made under the said subsection (7) against any such matter or matters have been finally determined and none of the appeals has been so determined by an order directing that the opinion of the Revenue Commissioners to the effect that the transaction is a tax avoidance transaction is void.
\n
(6)(a) Where, pursuant to subsections (2) and (4), the Revenue Commissioners form the opinion that a transaction is a tax avoidance transaction, they shall immediately thereupon give notice in writing of the opinion to any person from whom a tax advantage would be withdrawn or to whom a tax advantage would be denied or to whom relief from double taxation would be given, if the opinion became final and conclusive, and the notice shall specify or describe— (i) the transaction which in the opinion of the Revenue Commissioners is a tax avoidance transaction, (ii) the tax advantage, or part thereof, calculated by the Revenue Commissioners which would be withdrawn from or denied to the person to whom the notice is given, (iii) the tax consequences of the transaction determined by the Revenue Commissioners, in so far as they would refer to the person, and (iv) the amount of any relief from double taxation calculated by the Revenue Commissioners which they would propose to give to the person in accordance with subsection (5) (c). (b)
\n
Section 542
\n
of the Income Tax Act, 1967 , shall, with any necessary modifications, apply for the purposes of a notice given under this subsection, or subsection (10), as if it were a notice given under that Act.
\n
(7)Any person aggrieved by an opinion formed or, in so far as it refers to the person, a calculation or determination made by the Revenue Commissioners pursuant to subsection (4) may, by notice in writing given to the Revenue Commissioners within 30 days of the date of the notice of opinion, appeal to the Appeal Commissioners on the grounds and, notwithstanding any other provision of the Acts, only on the grounds that, having regard to all of the circumstances, including any fact or matter which was not known to the Revenue Commissioners when they formed their opinion or made their calculation or determination, and to the provisions of this section— (a) the transaction specified or described in the notice of opinion is not a tax avoidance transaction, or (b) the amount of the tax advantage, or the part thereof, specified or described in the notice of opinion which would be withdrawn from or denied to the person is incorrect, or (c) the tax consequences specified or described in the notice of opinion, or such part thereof as shall be specified or described by the appellant in the notice of appeal, would not be just and reasonable in order to withdraw or to deny the tax advantage, or part thereof, specified or described in the notice of opinion, or (d) the amount of relief from double taxation which the Revenue Commissioners propose to give to the person is insufficient or incorrect.
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(8)The Appeal Commissioners shall hear and determine an appeal made to them under subsection (7) as if it were an appeal against an assessment to income tax and, subject to subsection (9), all the provisions of the Income Tax Act, 1967 , relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications:
\n
Provided that on the hearing or rehearing of the appeal— (a) it shall not be lawful to go into any grounds of appeal other than those specified in subsection (7), and (b) at the request of the appellants, two or more appeals made by two or more persons pursuant to the same opinion, calculation or determination formed or made by the Revenue Commissioners pursuant to subsection (4) may be heard or reheard together.
\n
(9)(a) On the hearing of an appeal made under subsection (7) the Appeal Commissioners shall have regard to all matters to which the Revenue Commissioners may or are required to have regard under the provisions of this section and— (i) in relation to an appeal made on the grounds referred to in paragraph (a) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering, if they, or a majority of them— (I) consider that the transaction specified or described in the notice of opinion, or any part of that transaction, is a tax avoidance transaction, that the opinion, or the opinion in so far as it relates to that part, is to stand good, or (II) consider that, subject to such amendment or addition thereto as the Appeal Commissioners, or the said majority of them, deem necessary and as they shall specify or describe the transaction, or any part of it, specified or described in the notice of opinion, is a tax avoidance transaction, that the transaction, or that part of it, be so amended or added to and that, subject to the amendment or addition, the opinion, or the opinion in so far as it relates to that part, is to stand good, or (III) do not so consider as referred to in clause (I) or (II), that the opinion is void, or (ii) in relation to an appeal made on the grounds referred to in paragraph (b) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering that the amount of the tax advantage, or the part thereof, specified or described in the notice of opinion be increased or reduced by such amount as they shall direct or that it shall stand good, or (iii) in relation to an appeal made on the grounds referred to in paragraph (c) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering that the tax consequences specified or described in the notice of opinion shall be altered or added to in such manner as they shall direct or that they shall stand good, or (iv) in relation to an appeal made on the grounds referred to in paragraph (d) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering that the amount of the relief from double taxation specified or described in the notice of opinion shall be increased or reduced by such amount as they shall direct or that it shall stand good. (b) The provisions of this subsection shall, subject to any necessary modifications, apply to the rehearing of an appeal by a judge of the Circuit Court and, to the extent necessary, to the determination by the High Court of any question or questions of law arising on the statement of a case for the opinion of the High Court.
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(10)The Revenue Commissioners may, at any time, amend, add to or withdraw any matter specified or described in a notice of opinion by giving notice (hereafter in this subsection referred to as the “notice of amendment”) in writing of the amendment, addition or withdrawal to each and every person affected thereby, in so far as the person is so affected, and the foregoing provisions of this section shall apply in all respects as if the notice of amendment were a notice of opinion and any matter specified or described in the notice of amendment were specified or described in a notice of opinion:
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Provided that no such amendment, addition or withdrawal may be made so as to set aside or alter any matter which has become final and conclusive on the determination of an appeal made with regard to that matter under subsection (7).
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(11)Where pursuant to subsections (2) and (4), the Revenue Commissioners form the opinion that a transaction is a tax avoidance transaction and, pursuant to that opinion, notices are to be given under subsection (6) to two or more persons, any obligation on the Revenue Commissioners to maintain secrecy or any other restriction upon the disclosure of information by the Revenue Commissioners shall not apply with respect to the giving of the notices as aforesaid or to the performance of any acts or the discharge of any functions authorised by this section to be performed or discharged by them or to the performance of any act or the discharge of any functions, including any act or function in relation to an appeal made under subsection (7), which is directly or indirectly related to the acts or functions so authorised.
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(12)The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions, including the forming of an opinion, authorised by this section to be performed or discharged by the Revenue Commissioners and references in this section to the Revenue Commissioners shall, with any necessary modifications, be construed as including references to an officer so nominated.
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(13)This section shall apply as respects any transaction where the whole or any part of the transaction is undertaken or arranged on or after the 25th day of January, 1989, and as respects any transaction undertaken or arranged wholly before that date in so far as it gives rise to, or would, but for this section, give rise to— (a) a reduction, avoidance or deferral of any charge or assessment to tax, or part thereof, where the charge or assessment arises by virtue of any other transaction carried out wholly on or after a date, or (b) a refund or a payment of an amount, or of an increase in an amount, of tax, or part thereof, refundable or otherwise payable to a person where that amount, or increase in the amount, would otherwise become first so refundable or otherwise payable to the person on a date, which could not fall earlier than the said 25th day of January, 1989, as the case may be.
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Amendment of section 33 (connected persons) of Capital Gains Tax Act, 1975.
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87.—
\n
Section 33
\n
of the Capital Gains Tax Act, 1975 , is hereby amended by the insertion after subsection (5) of the following subsection: “(5A) (a) Where a person disposes of an asset to another person in such circumstances that— (i) the proviso to subsection (5) would, but for this subsection, apply in determining the market value of the asset, and (ii) the person is not chargeable to capital gains tax under section 4 in respect of any gain accruing on his disposal of the asset, then, as respects any subsequent disposal of the asset by the other person, that other person's acquisition of the asset shall, for the purposes of this Act, be deemed to be for an amount equal to the market value of the asset determined as if the said proviso to subsection (5) had not been enacted. (b) This subsection shall— (i) apply to disposals made on or after the 25th day of January, 1989, and (ii) have effect for the purposes of the determination of any deduction to be made from a chargeable gain accruing on or after the 25th day of January, 1989, in respect of an allowable loss, notwithstanding that the loss accrued, or, but for this section, would have accrued, on a disposal made before that day.”.
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Schemes to avoid liability to tax under Schedule F.
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88.—(1) This section is for the purposes of counteracting any scheme or arrangement undertaken or arranged by a close company, or to which the close company is a party, being a scheme or arrangement the purpose of which, or one of the purposes of which, is to secure that any shareholder in the close company avoids or reduces a charge or assessment to income tax under Schedule F by converting into a capital receipt of the shareholder any amount which would otherwise be available for distribution by the close company to the shareholder by way of a dividend.
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(2)Subject to subsection (6), this section shall apply to a disposal of shares in a close company by a shareholder if, following the disposal or the carrying out of a scheme or arrangement of which the disposal is a part, the interest of the shareholder in any trade or business (hereafter in this section referred to as the “specified business”) which was carried on by the close company at the time of the disposal, whether or not the specified business continues to be carried on by the close company after the disposal, is not significantly reduced.
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(3)Subject to subsection (4) and notwithstanding subsection (1) of section 84 of the Act of 1976 or any provision of the Capital Gains Tax Acts, the amount of— (a) the proceeds in either or both money and money's worth received by a shareholder in respect of a disposal of shares in a close company to which this section applies, or (b) if it is less than those proceeds, the excess of those proceeds over any consideration, being consideration which— (i) is new consideration received by the close company for the issue of those shares, and (ii) has not previously been taken into account for the purposes of this subsection, shall, for all the purposes of the Tax Acts, be treated as a distribution (within the meaning of the Act of 1976) made, at the time of the disposal, by the close company to the shareholder.
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(4)(a) The amount which at any time may be treated, under subsection (3), as a distribution made by a close company to a shareholder in respect of any disposal of shares in the close company shall not exceed the amount of the capital receipt, or the aggregate of the amounts of the capital receipts, which at such time has, or have, been received by the shareholder— (i) in respect of the disposal, or (ii) by reason of any act done pursuant to a scheme or arrangement of which the disposal is a part:
\n
Provided that— (I) a capital receipt received by a shareholder at any time on or after the disposal shall in respect of such time result in so much of the amount mentioned in subsection (3) being treated as a distribution (which is made by the close company to the shareholder at the time of the disposal) as does not exceed the amount of the capital receipt, or the aggregate of the amounts of such capital receipts, which at such time on or after the disposal has or have been received by the shareholder, and (II) if, as a result of a shareholder having received a capital receipt, a close company is treated as having made a distribution to him under subsection (3), any provision of the Income Tax Acts in respect of interest on unpaid tax shall apply, for the purposes of tax due in respect of that distribution, as if the tax were due and payable only from the day on which the shareholder received the capital receipt. (b) For the purposes of this subsection, “capital receipt” means, as appropriate in the circumstances, any amount of either or both money and money's worth (other than shares issued by a close company carrying on the specified business) which— (i) is received by a shareholder in respect of a disposal of shares or by reason of any act done pursuant to a scheme or arrangement of which the disposal is a part, and (ii) is not, apart from this section, chargeable to income tax in the hands of the shareholder.
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(5)Notwithstanding the provisions of section 88 (1) of the Act of 1976, where a shareholder in a close company is treated under this section as having received a distribution from the close company, the shareholder shall only be entitled to a tax credit in respect of the distribution to the extent that the close company has paid advance corporation tax in respect of the distribution in accordance with Chapter VII of Part I of the Finance Act, 1983 :
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Provided that where a close company would but for the application of the provisions of section 41 of the said Finance Act, 1983 , have paid an amount or an additional amount of advance corporation tax in respect of a distribution, then the close company shall be treated as having paid such an amount or additional amount of advance corporation tax in respect of that distribution for the purposes of this subsection.
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(6)This section shall not apply as respects a disposal of shares in a close company by a shareholder where it is shown to the satisfaction of the inspector or, on the hearing, or the rehearing, of an appeal, to the satisfaction of the Appeal Commissioners, or the judge of the Circuit Court, as the case may be, that the disposal was made for bona fide commercial reasons and not as part of a scheme or arrangement the purpose, or one of the purposes, of which was the avoidance of tax.
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(7)(a) In this section— “the Act of 1976” means the Corporation Tax Act, 1976 ; “appeal” means an appeal made pursuant to the provisions of section 416 of the Income Tax Act, 1967 ; “close company” has the same meaning as it has, by reason of sections 94 and 95 of the Act of 1976, for the purposes of that Act; “market value” shall be construed in accordance with section 49 of the Capital Gains Tax Act, 1975 ; “new consideration” has the meaning assigned to it by section 87 of the Act of 1976; “shares” includes loan stock, debentures and any interest or rights in or over, or any option in relation to, shares, loan stock or debentures, and references to “shareholder” shall be construed accordingly. (b) (i) For the purposes of this section, there shall be a disposal of shares by a shareholder where the shareholder disposes of shares, or is treated under the provisions of the Capital Gains Tax Acts as disposing of shares, and references to a disposal of shares shall include references to a part disposal of shares within the meaning of those Acts. (ii) Where under any arrangement between a close company (hereafter in this subparagraph referred to as “the first-mentioned company”) and its, or some of its, shareholders (being any arrangement similar to an arrangement entered into for the purposes of or in connection with a scheme of reconstruction or amalgamation) another close company issues shares to those shareholders in respect of or in proportion to (or as nearly as may be in proportion to) their holdings of shares in the first-mentioned company, but the shares in the first-mentioned company are either retained by the shareholders or are cancelled, then those shareholders shall, for the purposes of this section, be treated as making a disposal, or a part disposal, as the case may be, of the shares in the first-mentioned company in exchange for those shares held by them in consequence of such arrangement. (c) For the purposes of this section, the interest of a shareholder in a trade or business is not significantly reduced following a disposal of shares or the carrying out of a scheme or arrangement of which the disposal is a part, if, but only if, at any time after the disposal, the percentage— (i) of the ordinary share capital of the close company carrying on the trade or business at such time which is beneficially owned by the shareholder at such time, or (ii) of any profits, which are available for distribution to equity holders, of the close company carrying on the trade or business at such time to which the shareholder is beneficially entitled at such time, or
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(iii) of any assets, available for distribution to equity holders on a winding up, of the close company carrying on the trade or business at such time to which the shareholder would be beneficially entitled at such time on a winding up of the close company, is not significantly less than the percentage of the said ordinary share capital, profits or assets, as the case may be, of the close company carrying on the trade or business at any time prior to the disposal— (I) which the shareholder beneficially owned, or (II) to which the shareholder was beneficially entitled, at such time prior to the disposal, and sections 109 to 111 and section 114 of the Act of 1976 shall apply, but without regard to section 107 (7) of the Act of 1976 in so far as it relates to those sections, with any necessary modifications, to the determination, for the purposes of this paragraph, of the percentage of share capital, or other amount, which a shareholder beneficially owns or is beneficially entitled to, as they apply to the determination for the purposes of Part XI of the Act of 1976 of the percentage of any such amount which a company so owns or is so entitled to. (d) The value of any amount received in money's worth shall, for the purposes of this section, be the market value of the money's worth at the time of its receipt.
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(8)This section shall apply to any disposal of shares made on or after the 25th day of January, 1989.
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Annual payments for non-taxable consideration.
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89.—(1)
\n
Section 433
\n
of the Income Tax Act, 1967 , is hereby amended, as respects any yearly interest of money, annuity or other annual payment paid on or after the 9th day of May, 1989, by the deletion in subsection (1) of the words “>no assessment shall be made upon the person entitled to such interest, annuity, or annual payment, but” and the said subsection (1), as so amended, is set out in the Table to this subsection.
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TABLE
\n
(1)Where any yearly interest of money, annuity, or any other annual payment (whether payable within or outside the State, either as a charge on any property of the person paying the same by virtue of any deed or will or otherwise, or as a reservation thereout, or as a personal debt or obligation by virtue of any contract, or whether payable half-yearly or at any shorter or more distant periods), is payable wholly out of profits or gains brought into charge to tax, the whole of those profits or gains shall be assessed and charged with tax on the person liable to the interest, annuity, or annual payment, without distinguishing the same, and the person liable to make such payment, whether out of the profits or gains charged with tax or out of any annual payment liable to deduction, or from which a deduction has been made, shall be entitled, on making such payment, to deduct and retain thereout a sum representing the amount of the tax thereon at the rate or rates of tax in force during the period through which the said payment was accruing due. The person to whom such payment is made shall allow such deduction upon the receipt of the residue of the same, and the person making such deduction shall be acquitted and discharged of so much money as is represented by the deduction, as if that sum had been actually paid.
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(2)(a) Any payment to which this subsection applies— (i) shall be made without deduction of income tax, (ii) shall not be allowed as a deduction in computing the income or total income of the person by whom it is made, and (iii) shall not be a charge on income for the purposes of corporation tax. (b) This subsection applies to any payment made on or after the 9th day of May, 1989, which is— (i) an annuity or other annual payment charged with tax under Case III of Schedule D, other than— (I) interest, (II) an annuity granted in the ordinary course of a business of granting annuities, or (III) a payment made to an individual under a liability incurred in consideration of his surrendering, assigning or releasing an interest in settled property to or in favour of a person having a subsequent interest, and (ii) made under a liability incurred for consideration in money or money's worth, where all or any part of such consideration is not required to be brought into account in computing for the purposes of income tax or corporation tax the income of the person making the payment.
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Arrangements reducing value of company shares.
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90.—(1) In this section— “arrangement” includes— (a) any act or omission by a person or by the trustees of a disposition; (b) any act or omission by any person having an interest in shares in a company; (c) the passing by any company of a resolution; or (d) any combination of acts, omissions or resolutions referred to in paragraphs (a), (b) and (c); “company” means a private company within the meaning assigned by section 16(2) of the Principal Act; “company controlled by a donee or successor” has the same meaning as is assigned to “company controlled by the donee or the successor” by section 16 of the Principal Act; “event” includes— (a) a death; and (b) the expiration of a specified period; “the Principal Act” means the Capital Acquisitions Tax Act, 1976 ; “related shares” means the shares in a company, the market value of which shares is increased by any arrangement; “related trust” has the meaning assigned to it by subsections (2) and (4); “specified amount” means an amount equal to the difference between— (a) the market value of shares in a company immediately before an arrangement is made, and ascertained under the provisions of section 16 or 17 of the Principal Act as if each share were a share in a company controlled by a donee or successor; and (b) the market value of those shares, or of property representing those shares, immediately after the arrangement is made, and ascertained under the provisions of section 15 of the Principal Act, and such specified amount shall be deemed to be situate where the company is incorporated.
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(2)Where— (a) a person has an absolute interest in possession in shares in a company; and (b) any arrangement results in the market value of those shares, or of property representing those shares, immediately after that arrangement is made, being less than it would be but for that arrangement, then, tax shall be payable in all respects as if a specified amount which relates to that arrangement were a benefit taken, immediately after that arrangement is made, from that person, as disponer, by— (i) the beneficial owners of the related shares in that company; and (ii) so far as the related shares in that company are held in trust (in this section referred to as the “related trust”) and have no ascertainable beneficial owners, by the disponer in relation to that related trust as if, immediately after that arrangement is made, that disponer was the absolute beneficial owner of those related shares, in the same proportions as the market value of the related shares, which are beneficially owned by them or are deemed to be so beneficially owned, is increased by that arrangement.
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(3)Where— (a) an interest in property is limited by the disposition creating it to cease on an event; (b) immediately before the making of an arrangement to which paragraph (c) relates, the property includes shares in a company; and (c) the arrangement results in the market value of those shares, or of property representing those shares, immediately after that arrangement is made, being less than it would be but for that arrangement, then, tax shall be payable under that disposition in all respects— (i) where the interest in property is an interest in possession, as if such property included a specified amount which relates to that arrangement; (ii) where the interest in property is not an interest in possession, as if it were an interest in possession and such property included a specified amount which relates to that arrangement; and (iii) as if the event on which the interest was limited to cease under that disposition had happened, to the extent of the specified amount, immediately before that arrangement is made.
\n
(4)Where— (a) shares in a company are, immediately before the making of an arrangement to which paragraph (b) relates, subject to a discretionary trust under or in consequence of any disposition; and (b) the arrangement results in those shares, or property representing those shares, remaining subject to that discretionary trust but, immediately after that arrangement is made, the market value of those shares, or of property representing those shares, is less than it would be but for that arrangement, then, tax shall be payable under that disposition in all respects as if a specified amount, which relates to that arrangement, were a benefit taken immediately after that arrangement is made— (i) by the beneficial owners of the related shares in that company; and (ii) so far as the related shares in that company are held in trust (in this section referred to as the “related trust”) and have no ascertainable beneficial owners, by the disponer in relation to that related trust as if, immediately after that arrangement is made, that disponer was the absolute beneficial owner of those related shares, in the same proportions as the market value of the related shares, which are beneficially owned by them or are deemed to be so beneficially owned, is increased by that arrangement.
\n
(5)The provisions of subsections (2), (3) and (4) shall not prejudice any charge for tax in respect of any gift or inheritance taken under any disposition on or after the making of an arrangement referred to in those subsections and comprising shares in a company, or property representing such shares.
\n
(6)Where shares in a company, which are held in trust under a disposition made by any disponer, are related shares by reason of any arrangement referred to in this section, any gift or inheritance taken under the disposition on or after the arrangement is made and comprising those related shares, or property representing those related shares, shall be deemed to be taken from that disponer.
\n
(7)In relation to the tax due and payable in respect of any gift or inheritance taken under the provisions of paragraph (ii) of subsection (2) or paragraph (ii) of subsection (4), and notwithstanding the provisions of the Principal Act— (a) the disponer in relation to the related trust shall not be a person primarily accountable for the payment of such tax; and (b) a person who is a trustee of the related trust concerned for the time being at the date of the gift or at the date of the inheritance, or at any date subsequent thereto, shall be so primarily accountable.
\n
(8)A person who is accountable for the payment of tax in respect of any specified amount, or part of a specified amount, taken as a gift or an inheritance under this section shall, for the purpose of paying the tax, or raising the amount of the tax when already paid, have power, whether the related shares are or are not vested in him, to raise the amount of such tax and any interest and expenses properly paid or incurred by him in respect thereof, by the sale or mortgage of, or a terminable charge on, the related shares in the relevant company.
\n
(9)Tax due and payable in respect of a taxable gift or a taxable inheritance taken under this section shall be and remain a charge on the related shares in the relevant company.
\n
(10)Where related shares are subject to a discretionary trust immediately after an arrangement is made in accordance with the provisions of this section, the amount by which the market value of such shares is increased by such arrangement shall be property for the purposes of a charge for tax arising by reason of the provisions of section 106 of the Finance Act, 1984 .
\n
(11)This section shall apply only as respects a gift or an inheritance taken as a result of an arrangement which is made on or after the 25th day of January, 1989.
\n
PART VII
\n
Miscellaneous Capital Services Redemption Account.
\n
91.—(1) In this section— “the principal section” means section 22 of the Finance Act, 1950 ; “the 1988 amending section” means section 67 of the Finance Act, 1988 ; “the thirty-ninth additional annuity” means the sum charged on the Central Fund under subsection (4); “the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.
\n
(2)In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1989, subsection (4) of the 1988 amending section shall have effect with the substitution of “£44,924,133” for “£44,807,298”.
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(3)Subsection (6) of the 1988 amending section shall have effect with the substitution of “£34,009,980” for “£34,439,900”.
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(4)A sum of £48,206,431 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, 1989.
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(5)The thirty-ninth additional annuity shall be paid into the account in such manner and at such times in the relevant financial year as the Minister may determine.
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(6)Any amount of the thirty-ninth additional annuity, not exceeding £37,052,550 in any financial year, may be applied towards defraying the interest on the public debt.
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(7)The balance of the thirty-ninth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.
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Tax concessions for disabled drivers, etc.
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92.—(1) Notwithstanding anything to the contrary contained in any enactment, the Minister for Finance may, after consultation with the Minister for Health and the Minister for the Environment, make regulations providing for— (a) the repayment of excise duty and value-added tax and the remission of road tax in respect of a motor vehicle used by, and (b) the repayment of excise duty relating to hydrocarbon oil used for combustion in the engines of vehicles, to be specified in the regulations, by, a severely and permanently disabled person— (i) as a driver, where the disablement is of such a nature that the person concerned could not drive any vehicle unless it is specially constructed or adapted to take account of that disablement, or (ii) as a passenger, where the vehicle has been specially constructed or adapted to take account of the passenger's disablement, and where the vehicle is adapted, the cost of such adaptation consists of not less than 30 per cent. of the value of the vehicle excluding tax and excise duty, or such lesser percentage in respect of certain cases as may be specified by regulations in respect of the repayment of any tax relating to adaptation costs only.
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(2)Regulations under this section shall provide for— (a) the criteria for eligibility for the remission of the taxes specified in subsection (1), including such further medical criteria in relation to disabilities as may be considered necessary, (b) subject to subsection (3) (b), the procedures to be used in relation to the primary medical certification of a disabled person and to appeals against such certification, (c) the procedures in relation to the certification of vehicles to which the regulations relate, (d) the amount of value-added tax and excise duty repayable in respect of a vehicle to which the regulations relate, (e) the maximum engine size or sizes to which the regulations relate, (f) the limits on the frequency of renewal of a vehicle, for the purposes of obtaining a refund of tax or excise duty, and (g) in the case of the driver concerned, evidence that the vehicle is for his personal use and evidence of his driving capacity, and the regulations may provide for such other matters as the Minister for Finance considers necessary or expedient for the purposes of giving effect to this section.
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(3)(a) Upon the first coming into operation of regulations under this section, section 43
\n
(1)of the Finance Act, 1968 , shall cease to have effect. (b) Any person who, at the passing of this Act, was the registered owner of a motor vehicle, being a motor vehicle in respect of which such person was entitled to and had received a refund of tax or excise duty by reference to section 43
\n
(1)of the Finance Act, 1968 , shall be deemed to be a person who possesses a primary medical certificate which, subject to compliance with the non-medical requirements set out in the regulations, entitles him to a similar repayment of tax or excise duty by reference to this section.
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(4)Regulations made under this section shall be laid before Dáil Éireann as soon as may be after they are made, and if a resolution annulling the regulations is passed by Dáil Éireann within the next subsequent 21 days on which Dáil Éireann has sat after the regulations have been so laid, the regulations shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.
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(5)In this section— “medical practitioner” means a medical practitioner registered under the Medical Practitioners Act, 1978 ; “primary medical certification” means medical certification by a medical practitioner who is the holder of a post in a health board, being the post commonly known as the post of Director of Community Care and Medical Officer of Health, in the area in which the person to whom the certification relates ordinarily resides and “primary medical certificate” shall be construed accordingly.
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Winding up of Savings Certificates Reserve Fund.
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93.—The Minister may, by order, designate a date upon which the Savings Certificates Reserve Fund shall be wound up and upon that date— (a) that Fund shall cease to exist, (b) the balances remaining to the credit of the Principal Reserve Account and the Interest Reserve Account of that Fund shall be paid into the Capital Services Redemption Account and shall be applied towards defraying the principal and interest on the public debt, and (c) section 34 of the Finance Act, 1929 , and section 17 of the Finance Act, 1943 , shall cease to have effect.
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Charging of expenses incurred in connection with management of prize bonds.
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94.—(1) (a)
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Section 22
\n
of the Finance (Miscellaneous Provisions) Act, 1956 , is hereby amended— (i) in subsection (2), by the insertion of “and management” after “issue”, and (ii) by the deletion of subsection (4), and the said subsection (2), as so amended, is set out in the Table to this section. (b)
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Section 65
\n
of the Finance Act, 1958 , is hereby amended by the deletion of subsection (1).
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(2)Subsection (1) shall come into operation on the 1st day of January, 1990.
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TABLE
\n
(2)The principal of prize bonds, the prizes in respect of them and the expenses incurred with their issue and management shall be charged on the Central Fund or the growing produce thereof.
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Securities of Radio Telefís Éireann and Industrial Credit Corporation p.l.c.
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95.—(1) Part XXXII of the Income Tax Act, 1967 , is hereby amended— (a) by the insertion after section 467A of the following section: “467B.—(1) Any debentures, debenture stock, bonds, notes, certificates of charge or other forms of security issued after the passing of the Finance Act, 1989, by a company to which this section applies shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 466 and that section shall apply accordingly.
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(2)Notwithstanding anything contained in this Act, in computing for the purposes of assessment under Schedule D the amount of the profits or gains of a company to which this section applies, for any period for which accounts are made up, there shall be allowed as a deduction the amount of the interest on debentures, debenture stock, bonds, notes, certificates of charge or other forms of security which, by direction of the Minister for Finance given under section 466 as applied by this section, is paid by the company without deduction of tax for such period.
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(3)The companies to which this section applies are Radio Telefís Éireann and the Industrial Credit Corporation p.l.c.” and (b) by the insertion in section 474 (1) after “467A,” (inserted by the Finance Act, 1988 ) of “467B,” and the said section 474 (1), as so amended, is set out in the Table to this subsection.
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TABLE
\n
(1)This section applies to any stock or other security on which interest is payable without deduction of income tax by virtue of a direction given by the Minister for Finance in pursuance of section 467 , 467A, 467B, 471 , 472 or 473 or section 59 of the Finance Act, 1970 or section 92 of the Finance Act, 1973 .
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(2)
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Section 19
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(d) of the Capital Gains Tax Act, 1975 , is hereby amended, as on and from the passing of this Act, by the insertion after “the Electricity Supply Board,” of “Radio Telefís Éireann, the Industrial Credit Corporation p.l.c.,” and the said section 19 (d), as so amended, is set out in the Table to this subsection.
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TABLE (d) debentures, debenture stock, certificates of charge or other forms of security issued by the Electricity Supply Board, Radio Telefís Éireann, the Industrial Credit Corporation p.l.c., Bord Telecom Éireann, Irish Telecommunications Investments p.l.c., Córas Iompair Éireann, The Agricultural Credit Corporation, Limited, Bord na Móna, Aerlínte Éireann, Teoranta, Aer Lingus, Teoranta or Aer Rianta, Teoranta.
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Financial arrangements relating to Bord Telecom Éireann.
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96.—Payments (being payments by virtue of an agreement entered into under subsection (1) of section 100 of the Postal and Telecommunications Services Act, 1983 , and subsection (1) of section 68 of the Finance Act, 1985 ) amounting to the sum of £208,127,767, made to the Minister for Finance by Bord Telecom Éireann by way of prepayments of moneys payable under the said section 100, shall be deemed to be payments thereunder.
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Post Office Savings Bank Fund.
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97.—
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Section 17
\n
of the Customs, Inland Revenue, and Savings Banks Act, 1877 , is hereby amended by the substitution of the following paragraph for the paragraph numbered (1.): “(1.) An account in the form of a balance sheet as at the thirty-first day of December, showing assets, liabilities and the accumulated reserve of the Post Office Savings Bank Fund, with notes thereto which shall include (where appropriate) particulars of interest accrued in respect of the securities standing to the credit of that Fund and of the interest paid and credited to depositors in pursuance of any enactment relating to the Post Office Savings Bank, and a note further thereto of the expenses incurred in the execution of those enactments.”.
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Securities of European Economic Community.
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98.—(1) Subsection (1) of section 92 of the Finance Act, 1973 , is hereby amended by the insertion after “State by” of “the European Economic Community,” and the said subsection, as so amended, is set out in the Table to this section.
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(2)Paragraph (a) of section 66 of the Finance Act, 1984 , is hereby amended by the insertion after “the Minister for Finance, by” of “the European Economic Community,” and the said paragraph, as so amended, is set out in the Table to this section.
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TABLE
\n
(1)This section applies to any stock or other form of security issued in the State by the European Economic Community, the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank. (a) in the State, with the approval of the Minister for Finance, by the European Economic Community, the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank as it applies to the forms of security specified in paragraph (a) of that section, and Care and management of taxes and duties.
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99.—All taxes and duties (except the excise duty on driving licences) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.
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Short title, construction and commencement.
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100.—(1) This Act may be cited as the Finance Act, 1989.
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(2)Parts I and 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.
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(3)
\n
Part II
\n
(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.
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(4)
\n
Part III
\n
shall be construed together with the Value-Added Tax Acts, 1972 to 1988, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1989.
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(5)
\n
Part IV
\n
and (so far as relating to stamp duties)
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Part VII
\n
shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.
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(6)
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Part V
\n
and (so far as relating to gift tax or inheritance tax)
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Part VII
\n
shall be construed together with the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act.
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(7)
\n
Part VI
\n
(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 value-added tax) shall be construed together with the Value-Added Tax Acts, 1972 to 1989, and (so far as relating to stamp duties) shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act and (so far as relating to gift tax or inheritance tax) shall be construed together with the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act and (so far as relating to residential property tax) shall be construed together with Part VI of the Finance Act, 1983 .
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(8)
\n
Part I
\n
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, 1989.
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(9)
\n
Part III
\n
, other than sections 54 , 55 , 56 (a) and 5 8 to 6 3, shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1989, paragraphs (a) and (d) of section 61 and section 63 (a) shall take effect as on and from the 1st day of July, 1989, and paragraphs (b) and (c) of section 61 and sections 62 and 63 (b) shall take effect as on and from the 1st day of November, 1989.
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(10)Chapter II of
\n
Part V
\n
shall come into force and shall take effect as on and from the 1st day of September, 1989.
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(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.
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(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.
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(13)In this Act, a reference to a subsection, paragraph or subparagraph is to the subsection, paragraph or subparagraph of the provision (including a Schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.
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FIRST SCHEDULE Accounting for and Payment of Tax Deducted from Relevant Payments and Undistributed Relevant Income
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Section 18
\n
.
\n
Time and manner of payment 1. (1) Notwithstanding any other provision of the Acts, this paragraph shall have effect for the purpose of regulating the time and manner in which tax deducted in accordance with the provisions of section 18
\n
(5)shall be accounted for and paid.
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(2)A collective investment undertaking, which is not a specified collective investment undertaking, shall, with effect from the 5th day of April, 1990, make, within 15 days from the 5th day of April each year, a return to the Collector-General of all amounts from which it was required, by reason of section 18
\n
(5)to deduct tax in the year ending on that date and the amount of appropriate tax which it was required to deduct from those amounts.
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(3)The appropriate tax required to be included in a return shall be due and payable at the time by which the return is to be made and shall be paid by the collective investment undertaking to the Collector-General, and the appropriate tax so due shall be payable by the collective investment undertaking without the making of an assessment; but the appropriate tax which has become due as aforesaid may be assessed on the collective investment undertaking (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.
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(4)If it appears to the inspector that there is an amount of appropriate tax which ought to have been and has not been included in a return, or the inspector is dissatisfied with any return, he may make an assessment on the collective investment undertaking to the best of his judgment; and any amount of appropriate tax due under an assessment made by virtue of this subparagraph shall be treated for the purpose of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.
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(5)Where any item has been incorrectly included in a return, the inspector may make such assessments, adjustments or set-offs as may in his judgment be required for securing that the resulting liabilities to tax (including interest on unpaid tax) whether of the collective investment undertaking or any other person are, so far as possible, the same as they would have been if the item had not been so included.
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(6)(a) Any appropriate tax assessed on a collective investment undertaking under this Schedule shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under subparagraph (3)) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under the said subparagraph (3), and