Finance Act, 1963

Finance Act, 1963 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 1963 Finance Act, 1963 Finance Act, 1963 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Print Full ActPriontáil an tAcht Iomlán Number 23 of 1963.

FINANCE ACT, 1963.

ARRANGEMENT OF SECTIONS

PART I

Income Tax Section

Section 1

Income tax and sur-tax for the year 1963-64.

Section 2

Exemption of bodies established for promotion of athletic or amateur games or sports.

Section 3

Amendment of section 34 of Income Tax Act, 1918.

Section 4

Amendment of section 39 of Income Tax Act, 1918.

Section 5

Option to treat capital allowances as creating or augmenting loss in trade, etc.

Section 6

Assessment of profits from occupation of land under Schedule D in certain cases.

Section 7

Deductions in relation to the establishment or alteration of superannuation schemes.

Section 8

Annual payment payable out of dividend from which income tax is not deductible or is deductible at reduced rate.

Section 9

Amendment of Rule 21 of General Rules.

Section 10

Amount of assessment under Rule 21 to be allowed as a loss for certain purposes.

Section 11

Amendment of section 21 of Finance Act, 1920.

Section 12

Amendment of section 22 of Finance Act, 1920.

Section 13

Amendment of section 8 of Finance Act, 1924.

Section 14

Amendment of section 227 of Income Tax Act, 1918.

Section 15

Time for certain summary proceedings.

Section 16

Power to require production of accounts and books.

Section 17

Power to obtain information as to interest paid or credited without deduction of tax.

Section 18

Amendment of Rule 18 (2) of General Rules and section 8 (4) of Finance Act, 1925.

Section 19

Amendment of section 7 of Finance Act, 1935.

Section 20

Amendment of section 12 of Finance (Miscellaneous Provisions) Act, 1956.

Section 21

Aggregation of assessments.

Section 22

Particulars of sums to be collected.

Section 23

Collector-General.

Section 24

Amendment of section 187(2) and section 196(1) of Income Tax Act, 1918.

Section 25

Change of date on which sur-tax is due and payable.

Section 26

Assessment and charge of sur-tax by inspectors of taxes.

Section 27

Estimation of certain amounts.

Section 28

Payment of reduced amount of sur-tax pending determination of appeal.

PART II

Customs and Excise

Section 29

Temporary importation of motor vehicles without payment of customs duty.

Section 30

Deferment of payment of beer duty.

Section 31

Relief by order from customs duties.

Section 32

Amendment of section 2 (2) of Betting Act, 1931.

Section 33

Dog duty—general licence.

Section 34

Amendments relative to penalties.

Section 35

Confirmation of Order.

PART III

Death Duties

Section 36

Amendment of section 33 of Finance Act, 1935.

PART IV

Corporation Profits Tax

Section 37

Increase of rate of corporation profits tax.

Section 38

Application of section 227 of Income Tax Act, 1918.

Section 39

Amendment of section 13 of Finance (Miscellaneous Provisions) Act, 1956.

PART V

Stamp Duties

Section 40

Termination of stamp duty on bills of lading.

Section 41

Exemption from stamp duty on certain bills of exchange.

Section 42

Amendment of sections 33 and 34 of Finance Act, 1961.

Section 43

Extension of section 19 of Finance Act, 1950.

Section 44

Alteration of stamp duties on conveyances and transfers of stock and marketable securities.

Section 45

Agreement as to stamp duty on certain instruments.

PART VI

Turnover Tax

Section 46

Interpretation (Part VI).

Section 47

Charge of turnover tax.

Section 48

Persons accountable.

Section 49

Registration.

Section 50

Exception in the case of moneys received from registered persons in certain cases.

Section 51

Withdrawing goods from stock.

Section 52

Regulations.

Section 53

Rate of tax.

Section 54

Estimation of tax due.

Section 55

Interest.

Section 56

Recovery of tax.

Section 57

Penalties.

Section 58

Fraudulent return, etc.

Section 59

Time limits.

Section 60

Penalty for assisting in making incorrect returns, etc.

Section 61

Proceedings in the High Court in respect of penalties.

Section 62

Application of section 222 of Income Tax Act, 1918.

Section 63

Substitution of agent, etc., for person not resident in State.

Section 64

Charge of tax on imported goods.

Section 65

Extension of certain Acts.

Section 66

Collection of tax.

Part VII

Industrial and Provident Societies: Income Tax and Corporation Profits Tax

Section 67

Interpretation (Part VII).

Section 68

Deduction as expenses of certain sums, etc.

Section 69

Allowance of deductions in respect of loan interest, etc.

Section 70

Disregard of profits or losses attributable to certain transactions.

Section 71

Payment of interest without deduction of tax.

PART VIII

Penalties and Assessments: Income Tax, Sur-Tax and Corporation Profits Tax

Section 72

Application of Part VIII.

Section 73

Penalties for failure to make certain returns, etc.

Section 74

Penalty for fraudulently or negligently making incorrect returns, etc.

Section 75

Provisions supplementary to section 74.

Section 76

Increased penalties in the case of body of persons.

Section 77

Proceedings against executor or administrator.

Section 78

Penalty for assisting in making incorrect return, etc.

Section 79

Evidence of income for purposes of Part VIII.

Section 80

Recovery of penalties.

Section 81

Application of Part VIII to corporation profits tax.

Section 82

Interpretation (Part VIII).

PART IX

Taxation of Rents and certain other Payments: Income Tax and Sur-Tax

Section 83

Interpretation (Part IX).

Section 84

Taxation of rents under short lease.

Section 85

Additional deductions in certain cases.

Section 86

Treatment of premiums, etc., as rent.

Section 87

Exclusion of certain lettings.

Section 88

Taxation of certain payments in respect of easements.

Section 89

Provisions as to assessment.

Section 90

Relief in respect of losses.

Section 91

Relief for amount not received.

Section 92

Deduction by reference to premium paid in the computation of profits for purposes of Cases I and II of Schedule D.

Section 93

Deductions by reference to premiums paid in computation of profits for purposes of Part IX.

Section 94

Taxation of rents under long leases and certain other payments.

Section 95

Returns, etc., for purposes of Part IX.

Section 96

Cesser, etc.

PART X

Miscellaneous

Section 97

Capital Services Redemption Account.

Section 98

Exemption from income tax and corporation profits tax of profits of lotteries.

Section 99

Partial cesser of section 38 (2) of Finance Act, 1924.

Section 100

Form of execution order in certain Revenue cases.

Section 101

Levying of fees and expenses under certain certificates.

Section 102

Amendment of section 14 of Finance Act, 1962.

Section 103

Amendment of temporary provisions relating to Road Fund.

Section 104

Repeals.

Section 105

Care and management of taxes and duties.

Section 106

Short title, construction and commencement.

FIRST SCHEDULE Exempted Activities (Turnover Tax) SECOND SCHEDULE Description of Goods (Turnover Tax) THIRD SCHEDULE Provisions referred to in Sections 73 , 74 and 76 of this Act FOURTH SCHEDULE Application of Part VIII to Corporation Profits Tax FIFTH SCHEDULE Forms of Execution Orders SIXTH SCHEDULE Enactments Repealed Acts Referred to Income Tax Act, 1918 1918, c. 40 Finance Act, 1943 1943, No. 16 Finance Act, 1958 1958, No. 25 Finance Act, 1959 1959, No. 18 Finance Act, 1946 1946, No. 15 Finance Act, 1956 1956, No. 22 Finance Act, 1957 1957, No. 20 Rent Restrictions Act, 1960 1960, No. 42 Finance Act, 1920 1920, c. 18 Finance Act, 1960 1960, No. 19 Finance Act, 1921 1921, c. 32 Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 1956, No. 8 Finance Act, 1929 1929, No. 32 Finance Act, 1950 1950, No. 18 Finance (No. 2) Act, 1959 1959, No. 42 Post Office Savings Bank Act, 1861 1861, c. 14 Finance Act, 1925 1925, No. 28 Insurance Act, 1936 1936, No. 45 Finance Act, 1935 1935, No. 28 Finance (Miscellaneous Provisions) Act, 1956 1956, No. 47 Finance Act, 1962 1962, No. 15 Finance Act, 1951 1951, No. 15 Finance Act, 1934 1934, No. 31 Finance Act, 1928 1928, No. 11 Finance Act, 1961 1961, No. 23 Finance Act, 1922 1922, c. 17 Inland Revenue Act, 1880 1880, c. 20 Finance Act, 1918 1918, c. 15 Betting Act, 1931 1931, No. 27 Customs Consolidation Act, 1876 1876, c. 36 Customs Act, 1956 1956, No. 7 Customs and Inland Revenue Act, 1879 1879, c. 21 Tobacco Act, 1840 1840, c. 18 Probation of Offenders Act, 1907 1907, c. 17 Imposition of Duties (No. 133) (Matches) Order, 1963 S.I. No. 20 of 1963 Finance Act, 1941 1941, No. 14 Petty Sessions (Ireland) Act, 1851 1851, c. 93 Stamp Act, 1891 1891, c. 39 Sale of Goods Act, 1893 1893, c. 71 Totalisator Act, 1929 1929, No. 22 Gaming and Lotteries Act, 1956 1956, No. 2 Finance (New Duties) Act, 1916 1916, c. 11 Finance Act, 1923 1923, No. 21 Finance Act, 1924 1924, No. 27 Court Officers Act, 1945 1945, No. 25 Courts of Justice Act, 1924 1924, No. 10 Finance Act, 1952 1952, No. 14 Provisional Collection of Taxes Act, 1927 1927, No. 7 Imposition of Duties Act, 1957 1957, No. 7 Inland Revenue Regulation Act, 1890 1890, c. 21 Finance Act, 1945 1945, No. 20 Finance Act, 1932 1932, No. 20 Court Orders Act, 1926 1926, No. 18 Road Fund (Grants) (Temporary Provisions) Act, 1959 1959, No. 12 Road Fund (Grants) (Temporary Provisions) Act, 1962 1962, No. 3 Number 23 of 1963.

FINANCE ACT, 1963.

AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE) AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE. [30th July, 1963.] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

PART I.

Income Tax.

Income tax and sur-tax for the year 1963-64.

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1963, at the rate of six shillings and four pence in the pound.

Exemption of bodies established for promotion of athletic or amateur games or sports.

2.—Exemption shall be granted from income tax in respect of so much of the income of any body of persons established for the sole purpose of promoting athletic or amateur games or sports as is shown to the satisfaction of the Revenue Commissioners to be income which has been or will be applied to that purpose.

Amendment of section 34 of Income Tax Act, 1918.

3.—As respects tax for the year 1963-64 or a subsequent year of assessment— (a) the following section shall be substituted for section 34 of the Income Tax Act, 1918: “34.—(1) Subject to the provisions of this section, where in any year of assessment any person has sustained a loss in any trade, profession, employment or vocation, carried on by him either solely or in partnership, or in the occupation of lands for the purposes of husbandry only, or in the occupation of woodlands in respect of which he has elected to be charged to tax under Schedule D, he shall be entitled, on making a claim in that behalf, to such repayment of tax as is necessary to secure that the aggregate amount of tax for the year ultimately borne by him will not exceed the amount which would have been borne by him if his income had been reduced by the amount of the loss.

Amendment of section 39 of Income Tax Act, 1918.

4.—Subsection (2) of section 39 of the Income Tax Act, 1918, is hereby amended by the substitution of “six hundred pounds by way of gross sum” and “two hundred and fifty pounds a year by way of annuity” for “three hundred pounds by way of gross sum” and “one hundred and thirty pounds a year by way of annuity”, respectively.

Option to treat capital allowances as creating or augmenting loss in trade, etc.

5.—(1) In this section— “balancing charges” means balancing charges under

Part V

of the Finance Act, 1959 ; “capital allowances” means allowances, other than allowances falling to be made in computing profits or gains, under Rule 6 of the Rules applicable to Cases I and II of Schedule D, section 5 or section 6 of the Finance Act, 1946 ,

Part V

of the Finance Act, 1956 ,

Part IV

of the Finance (Miscellaneous Provisions) Act, 1956 ,

Part V

of the Finance Act, 1957 , or

Part V

or section 74 of the Finance Act, 1959 ; “year of claim” means, in relation to any claim under section 34 of the Income Tax Act, 1918, the year of assessment for which the claim is made.

In paragraph (a) of this subsection “the basis period for a year of assessment” means in relation to any trade the period on the profits or gains of which income tax for that year falls to be finally computed under Case I of Schedule D in respect of the trade or, where, by virtue of any Act, the profits or gains of any other period are to be taken to be the profits or gains of the said period, that other period.

Provided that where the claim is for a loss sustained before an event treated as the permanent discontinuance of the trade, this subsection shall not require the consent of any person as having been so engaged since that discontinuance or as the personal representative of such a person.

Assessment of profits from occupation of land under Schedule D in certain cases.

6.—(1) Where, for any year of assessment, a person to whom this section applies is chargeable to tax under Schedule B in respect of the occupation for the purposes of husbandry of any lands— (a) the person shall when required to do so by a notice in writing served on him by an inspector of taxes prepare and deliver to the inspector, within the time limited by the notice, a statement of the profits or gains on which he would have been chargeable for the year of assessment if he had made an election in relation to the lands under Rule 5 of the Rules applicable to Schedule B; (b) where the person fails to deliver the statement, or where the Revenue Commissioners are not satisfied with the statement delivered by the person, the Revenue Commissioners may serve on the person a notice in writing or notices in writing requiring him to do any of the following things, that is to say— (i) to deliver to an inspector of taxes copies of such accounts (including balance sheets) relating to the occupation of the lands as may be specified or described in the notice within such period as may be therein specified, including, where the accounts have been audited, a copy of the auditor's certificate, (ii) to make available, within such time as may be specified in the notice, for inspection by an inspector of taxes or by any officer authorised by the Revenue Commissioners, all such books, accounts and documents in his possession or power as may be specified or described in the notice, being books, accounts and documents which contain information as to transactions related to the occupation of the lands; (c) the inspector of taxes or other officer may take copies of, or extracts from, any books, accounts or documents made available for his inspection under the foregoing paragraph; (d) where the person fails to do anything which he is required to do by a notice under paragraph (b) of this subsection, the Income Tax Acts shall apply as if he had duly made, under Rule 5 of the Rules applicable to Schedule B, an election in relation to the lands by notice delivered immediately after the commencement of the year of assessment; (e) where the person has delivered copies of accounts relating to the occupation of the lands and the Revenue Commissioners are of opinion that the accounts overstate the profits or gains arising from such occupation, the Revenue Commissioners may certify accordingly; (f) where the Revenue Commissioners have given a certificate under the foregoing paragraph— (i) the Income Tax Acts shall, subject to the next subparagraph, apply as if the person had duly made, under Rule 5 of the Rules applicable to Schedule B, an election in relation to the lands by notice delivered immediately after the commencement of the year of assessment,

(ii) an appeal against the certificate shall, within twenty-one days after notification to the person of the giving of the certificate, lie to the Special Commissioners in like manner as an appeal would lie against an assessment to income tax and the provisions of the Income Tax Acts relating to appeals shall have effect accordingly.

Deductions in relation to the establishment or alteration of superannuation schemes.

7.—Where a superannuation scheme is established in connection with a trade or undertaking or a superannuation scheme so established is altered and the person by whom the trade or undertaking is carried on makes, on or after the 6th day of April, 1963, a payment in respect of expenses (including a payment in respect of professional fees, but not including a payment by way of contribution towards the cost of providing the benefits payable under the scheme) in connection with such establishment or alteration, then, if the scheme or, as the case may be, the altered scheme is— (a) operated through a fund approved, whether in whole or in part, by the Revenue Commissioners for the purposes of section 32 of the Finance Act, 1921 , (b) approved, whether in whole or in part, by the Revenue Commissioners under section 34 of the Finance Act, 1958 , or (c) an excepted scheme within the meaning of subsection (2) of section 33 of the Finance Act, 1958 , the amount of the payment shall be allowed to be deducted in the computation, for the purposes of assessment to income tax, of the profits or gains of the trade or undertaking as an expense incurred when the payment is made:

Provided that where, in a case falling within paragraph (a) or paragraph (b) of this section, a part only of the relevant fund or scheme is approved as therein mentioned, the deduction shall be restricted to so much of the payment as is referable to that part.

Annual payment payable out of dividend from which income tax is not deductible or is deductible at reduced rate.

8.—(1) Where the whole or any part of any annual payment is payable out of a dividend from which, by virtue of section 7 of the Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 , or section 9 or section 15 of the Finance (Miscellaneous Provisions) Act, 1956 , income tax either is not deductible or is deductible at a reduced rate— (a) a payment of the annual payment, or that part thereof, as the case may be, shall be treated as not having been paid out of profits or gains brought into charge to tax and, subject to the next paragraph, Rule 21 of the General Rules shall apply accordingly, (b) the amount of tax recoverable from the payer shall be tax on the payment which he has made calculated— (i) if income tax was not deductible from the dividend—at the standard rate of income tax, and (ii) if income tax was deductible from the dividend at a reduced rate—at a rate arrived at by deducting from the standard rate of income tax the rate of tax deductible from the dividend.

Amendment of Rule 21 of General Rules.

9.—(1) Rule 21 of the General Rules is hereby amended by the substitution of the following paragraphs for paragraph (2): “(2) Where any such payment as aforesaid is made by or through any person, that person shall forthwith deliver to the Revenue Commissioners an account of the payment, or of so much thereof as is not made out of profits or gains brought into charge, and of the tax deducted out of the payment or out of that part thereof, and the inspector shall assess and charge the payment of which an account is so delivered on that person. (2A) The inspector may, where any person has made default in delivering an account required by this Rule, or where he is not satisfied with the account so delivered, make an assessment according to the best of his judgment. (2B) In paragraph (2) and (2A) of this Rule “the inspector” means such inspector of taxes as the Revenue Commissioners may direct. (2C) All the provisions of the Income Tax Acts relating— (a) to persons who are to be chargeable with income tax and to income tax assessments; (b) to appeals against such assessments; (c) to the collection and recovery of income tax; and (d) to cases to be stated for the opinion of the High Court; shall, so far as they are applicable, apply to the charge, assessment, collection and recovery of income tax under this Rule.”

Amount of assessment under Rule 21 to be allowed as a loss for certain purposes.

10.—(1) Subject to the provisions of this section, where a person has been assessed to tax for the year 1963-64 or a subsequent year of assessment under Rule 21 of the General Rules, in respect of a payment made wholly and exclusively for the purposes of a trade, profession or vocation, the amount on which tax has been paid under that assessment shall, for the purposes of section 14 of the Finance Act, 1929 , and section 4 of the Finance Act, 1960 , be treated as though it were a loss sustained in that trade, profession or vocation and relief in respect thereof shall be allowed accordingly:

Provided that no relief shall be allowed under this section in respect of any such payment or any part of such payment which is not ultimately borne by the person assessed or which is charged to capital.

Part V

of the Finance Act, 1958 , or section 50 of the Finance Act, 1959 , or section 8 or paragraph (b) of subsection (3) of section 71 of this Act.

Amendment of section 21 of Finance Act, 1920.

11.—(1) Subsection (3) of section 21 of the Finance Act, 1920 , is hereby amended by the substitution of “of two hundred pounds a year or more and, where the child in respect of whom the deduction is to be allowed is entitled in his own right to an income exceeding eighty pounds a year, the deduction, instead of being one hundred and twenty pounds, shall be that amount reduced by the amount of the excess” for “exceeding eighty pounds a year”.

Amendment of section 22 of Finance Act, 1920.

12.—(1) Subsection (1) of section 22 of the Finance Act, 1920 , is hereby amended by the substitution of “one hundred and twenty pounds” for “one hundred and ten pounds”.

Amendment of section 8 of Finance Act, 1924.

13.—(1)

Section 8

of the Finance Act, 1924 , and that section as applied by subsection (9) of section 17 of the Finance Act, 1929 , shall have effect subject to the substitution in subsection (1) of “six years after the end of the year of assessment within” for “three years after the end of the year of assessment for”.

Amendment of section 227 of Income Tax Act, 1918.

14.—Section 227 of the Income Tax Act, 1918, is hereby amended by the insertion at the end of the section of “and any person shall also be liable as aforesaid if he knowingly and wilfully aids, abets, assists, incites or induces another person to make or deliver a false or fraudulent account, return, list, declaration or statement with reference to property, profits or gains or to tax”.

Time for certain summary proceedings.

15.—Notwithstanding subsection (4) of section 10 of the Petty Sessions (Ireland) Act, 1851 , summary proceedings under section 227 of the Income Tax Act, 1918, section 7 of the Finance (No. 2) Act, 1959 , or section 9 or section 31 of the Finance Act, 1960 , may be instituted within three years from the date of the committing of the offence or incurring of the penalty (as the case may be).

Power to require production of accounts and books.

16.—(1) Where a person who has been duly required to deliver a statement of the profits or gains arising to him from any trade, profession or vocation fails to deliver the statement, or where the Revenue Commissioners are not satisfied with the statement delivered by any such person, the Revenue Commissioners may serve on that person a notice in writing or notices in writing requiring him to do any of the following things, that is to say— (a) to deliver to an inspector of taxes copies of such accounts (including balance sheets) relating to the trade, profession or vocation as may be specified or described in the notice within such period as may be therein specified, including, where the accounts have been audited, a copy of the auditor's certificate; (b) to make available, within such time as may be specified in the notice, for inspection by an inspector of taxes or by any officer authorised by the Revenue Commissioners, all such books, accounts and documents in his possession or power as may be specified or described in the notice, being books, accounts and documents which contain information as to transactions of the trade, profession or vocation.

Power to obtain information as to interest paid or credited without deduction of tax.

17.—(1) Every person carrying on a trade or business who, in the ordinary course of the operations thereof, receives or retains money in such circumstances that interest becomes payable thereon which is paid or credited without deduction of income tax, and, in particular, every person carrying on the trade or business of banking, shall, if required to do so, by notice from an inspector of taxes, make and deliver to the said inspector of taxes, within the time specified in the notice, a return of all interest paid or credited by him as aforesaid during a year specified in the notice in the course of his trade or business or any such part of his trade or business as may be so specified, giving the names and addresses of the persons to whom the interest was paid or credited and stating, in each case, the amount of the interest:

Provided that— (a) no interest paid or credited to any person shall be required to be included in any such return if the total amount of the interest paid or credited to that person which would otherwise have fallen to be included in the return does not exceed £15; and (b) the year specified in a notice under this subsection shall not be a year ending more than three years before the date of the service of the notice.

This subsection shall have effect notwithstanding anything in section 4 of the Post Office Savings Bank Act, 1861 , but save as aforesaid that section shall remain in full force and effect.

Amendment of Rule 18(2) of General Rules and section 8(4) of Finance Act, 1925.

18.—(1) Paragraph (2) of Rule 18 of the General Rules is hereby amended by the insertion at the end of the paragraph of “in a case in which the grant of probate or letters of administration was made in that year, and no such assessment shall be made later than two years after the expiration of the year of assessment in which such grant was made in any other case, but the foregoing provisions of this paragraph shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year of assessment in which the deceased person died, such assessment may be made at any time before the expiration of two years after the end of the year of assessment in which the corrective affidavit was lodged”.

Amendment of section 7 of Finance Act, 1935.

19.—In relation to a company licensed under the Insurance Act, 1936 , to carry on assurance business, section 7 of the Finance Act, 1935 , shall have effect as if paragraph (e) contained in subsection (1) thereof were amended by the deletion of subparagraph (ii).

Amendment of section 12 of Finance (Miscellaneous Provisions) Act, 1956.

20.—Subsection (6) of section 12 of the Finance (Miscellaneous Provisions) Act, 1956 , shall apply to each of the five consecutive years of assessment, the first of which is the year of assessment immediately following the company's last year of claim for the purposes of that subsection within the meaning of section 10 of that Act, as if— (a) each of those years were a year of claim, and (b) for “reduced by twenty-five per cent.” in paragraph (a) of the said subsection (6) there were substituted— (i) in the case of the first of those years, “reduced by twenty per cent.”, (ii) in the case of the second of those years, “reduced by fifteen per cent.”, (iii) in the case of the third of those years, “reduced by ten per cent.”, (iv) in the case of the fourth and fifth of those years, “reduced by five per cent.”.

Aggregation of assessments.

21.—(1) Where two or more assessments fall to be made on a person under Schedule A, B, D or E, or under two or more of those Schedules,— (a) the tax in the assessments may be stated in one sum, (b) as regards Schedule A or B in a case in which there are two or more tenements or rateable hereditaments, one assessment may be made on the total of the annual or assessable values, and the notice of assessment may be stated correspondingly, but particulars of the annual or assessable values comprised in one assessment made pursuant to paragraph (b) of this subsection shall, on request, be given by the inspector of taxes.

Particulars of sums to be collected.

22.—(1) After assessments to income tax and sur-tax have been made, the inspectors of taxes shall transmit particulars of the sums to be collected to the Collector-General for collection, and references in the Income Tax Acts to duplicates of assessments delivered to collectors shall be construed as including references to particulars so transmitted.

Collector-General.

23.—(1) A collector, to be known as the Collector-General, shall be appointed by the Revenue Commissioners from their officers and shall hold office as the Collector-General at their will and pleasure.

Amendment of section 187(2) and section 196(1) of Income Tax Act, 1918.

24.—(1) Subsection (2) of section 187 of the Income Tax Act, 1918, is hereby amended by the substitution of “inspector of taxes” for “special commissioners”.

Change of date on which sur-tax is due and payable.

25.—(1) Subsection (2) of section 3 of the Finance Act, 1928 , is hereby amended by the substitution of “on the first day of January in the year of assessment” for “on or before the first day of January next after the end of the year of assessment” and by the substitution of “made” for “signed and allowed” in both places where the latter words occur in the subsection.

Assessment and charge of sur-tax by inspectors of taxes.

26.—(1) References in subsections (1), (2) and (5) of section 7 of the Income Tax Act, 1918, and subsection (1) of section 22 of the Finance Act, 1922 , to the special commissioners shall be construed as references to an inspector of taxes and the reference in subsection (3) of the said section 7 to the special commissioners shall be construed as a reference to the Revenue Commissioners.

Estimation of certain amounts.

27.—(1) Where— (a) the total income of an individual from all sources includes income from any source or sources which is to be computed on the basis of the actual amounts receivable in the year of assessment or where any deductions allowable on account of any annual sums paid out of the property or profits of an individual are to be allowed as deductions in respect of the year in which they are payable, and (b) an assessment to sur-tax is being made before the end of the year of assessment to which such assessment to sur-tax relates, the inspector of taxes in making the assessment shall, in computing the total amount of income assessable to sur-tax, estimate the amount of income from each such source or the amount of any such allowable deductions and, in making any such estimate, he shall have due regard to any corresponding amount of income or allowable deductions in the year immediately preceding the year of assessment.

Payment of reduced amount of sur-tax pending determination of appeal.

28.—Where an appeal relating to sur-tax is taken and the Special Commissioners are of opinion that the amount of sur-tax charged in any assessment exceeds the amount of sur-tax which will be payable when the appeal is finally determined— (a) the Special Commissioners shall order payment of such reduced amount of sur-tax as in their opinion is just, having regard to the information available, (b) that reduced amount of sur-tax shall be collected and paid in all respects as if it was sur-tax charged in an assessment which had become final and conclusive, (c) when the amount of sur-tax correctly chargeable has been finally determined, any balance of sur-tax chargeable in accordance with the determination shall be payable or any tax overpaid shall be repaid, as the case may require.

PART II.

Customs and Excise.

Temporary importation of motor vehicles without payment of customs duty.

29.—(1) The Minister for Finance may make regulations providing for the temporary importation of motor vehicles without payment of customs duty, in such circumstances and subject to such conditions as may be specified in the regulations.

Deferment of payment of beer duty.

30.—The power under section 16 of the Inland Revenue Act, 1880 , and the Finance Act, 1918 , to defer the time for payment of beer duty may, in the case of lager beer which is kept for a period of at least three months in the premises in which it is brewed, be exercised so as to permit payment of duty on the beer to be deferred to a date not later than the 25th day of the fourth month after the month in which the duty was charged.

Relief by order from customs duties.

31.—(1) The Minister for Finance, whenever he considers that it is necessary or expedient to relieve any goods from customs duties chargeable with a view to conforming with an international convention or agreement to which the State is a party and which relates to matters other than commercial relations, may by order provide for the relief of those goods from all or any of those duties in such circumstances and subject to such conditions as may be specified in the order.

Amendment of section 2

32.—Subsection (2) of section 2 of the Betting Act, 1931 , is hereby amended by the substitution of “one hundred pounds” for “five hundred pounds”.

Dog duty—general licence.

33.—(1) Any person who is liable to pay dog duty may elect to pay an annual sum of £10 in respect of such duty in lieu of the rate specified in subsection (1) of section 37 of the Finance Act, 1925 , and this amount shall be paid and collected through the Post Office by means of a general licence to be taken out annually by such person.

Amendments relative to penalties.

34.—(1)

Section 186

of the Customs Consolidation Act, 1876 , is hereby amended by the substitution of “whichever is the greater” for “at the election of the Commissioners of Customs”.

(10)

Section 232

of the Customs Consolidation Act, 1876 , is hereby amended by the addition of the following sentence: “The requirement of committal contained in this section shall have effect subject to the proviso that there shall be a discretion to allow a period not exceeding three months for payment of the penalty and, where such a period is allowed, the offender shall not be committed if the penalty is paid during that period.”

(11)

Section 1

of the Probation of Offenders Act, 1907 , shall not apply in relation to offences under the Customs Acts.

Confirmation of Order.

35.—The Imposition of Duties (No. 133) (Matches) Order, 1963 , is hereby confirmed.

PART III.

Death Duties.

Amendment of section 33 of Finance Act, 1935.

36.—(1) Subsection (1) of section 33 of the Finance Act, 1935 , is hereby amended by the substitution of “one thousand pounds” for “five hundred pounds”.

PART IV.

Corporation Profits Tax.

Increase of rate of corporation profits tax.

37.—(1)

Section 35

of the Finance Act, 1941 , shall not apply or have effect in respect of any accounting period ending on or after the 1st day of January, 1962, and in lieu thereof, the following provisions shall, subject to the next subsection, apply and have effect in respect of every such accounting period: (i) subsection (1) of section 52 of the Finance Act, 1920 , shall be construed and have effect as if “fifteen per cent.” were substituted for “five per cent.”; (ii) paragraph (a) of the proviso to that subsection shall be construed and have effect as if “tax shall be charged at a rate of five per cent. on so much of the profits as does not exceed two thousand five hundred pounds, and where the profits are profits arising in some shorter accounting period, tax shall be charged at a rate of five per cent. on such amount of the profits as bears to two thousand five hundred pounds” were substituted for “no tax shall be charged on the first five hundred pounds thereof, and where the profits are profits arising in some shorter accounting period, no tax shall be charged on such amount of the profits as bears to five hundred pounds”; (iii) paragraph (b) of that proviso shall be construed and have effect as if “twenty per cent.” were substituted for “ten per cent.”

Application of section 227 of Income Tax Act, 1918.

38.—Section 227 of the Income Tax Act, 1918, shall apply to corporation profits tax and, notwithstanding subsection (4) of section 10 of the Petty Sessions (Ireland) Act, 1851 , summary proceedings under that section as so applied may be instituted within three years from the date of the committing of the offence.

Amendment of section 13 of Finance (Miscellaneous Provisions) Act, 1956.

39.—Subsection (10) of section 13 of the Finance (Miscellaneous Provisions) Act, 1956 , shall apply to any accounting period or part of an accounting period of the company within the period of five years commencing on the 1st day of October, 1961, as if— (a) “accounting period”, wherever occurring in that subsection, referred to it, and (b) for “reduced by twenty-five per cent.” in paragraph (a) of the said subsection (10) there were substituted— (i) in case it is an accounting period or part of an accounting period within the first of those years, “reduced by twenty per cent.”, (ii) in case it is an accounting period or part of an accounting period within the second of those years, “reduced by fifteen per cent.”, (iii) in case it is an accounting period or part of an accounting period within the third of those years, “reduced by ten per cent.”, (iv) in case it is an accounting period or part of an accounting period within the fourth and fifth of those years, “reduced by five per cent.”.

PART V.

Stamp Duties.

Termination of stamp duty on bills of lading.

40.—(1) The stamp duty charged by the Stamp Act, 1891, under the heading “Bill of Lading” in the First Schedule to that Act shall cease to be chargeable.

Exemption from stamp duty on certain bills of exchange.

41.—The First Schedule to the Stamp Act, 1891, shall have effect as if the following exemption were inserted therein under the heading “Bill of Exchange or Promissory Note”: “Bill drawn on any form supplied by the Revenue Commissioners for the purpose of remitting amounts of turnover tax”.

Amendment of sections 33 and 34 of Finance Act, 1961 .

42.—(1) Subsection (4) of section 33 of the Finance Act, 1961 , shall not apply to a conveyance or transfer to a body corporate incorporated in the State otherwise than under the Companies Acts, 1908 to 1959, and subsection (4) of section 34 of that Act shall not apply to a lease to such a body.

Extension of section 19 of Finance Act, 1950.

43.—

Section 19

of the Finance Act, 1950 , is hereby amended— (a) by the substitution in subsection (1) of “a business of issuing policies of insurance” for “industrial assurance business”, (b) by the substitution in subsection (3) of “the business to which the agreement relates” for “its industrial assurance business”.

Alteration of stamp duties on conveyances and transfers of stock and marketable securities.

44.—(1) Conveyances or transfers of stocks or marketable securities, instead of being chargeable with stamp duty at the rates in force immediately before the commencement of this section, shall be chargeable with that duty at the following rates:

When the amount or value of the consideration for the sale does not exceed exceed £1 5s.

3d.

Exceeds £1 5s. and does not exceed £2 10s.

6d. ” £2 10s. ” ” ” ” £3 15s.

9d. ” £3 15s. ” ” ” ” £5 1s. ” £5 ” ” ” ” £10 2s. ” £10 ” ” ” ” £15 3s. ” £15 ” ” ” ” £20 4s. ” £20 ” ” ” ” £35 5s. ” £35 ” ” ” ” £60 10s. ” £60 ” ” ” ” £80 15s. ” £80 ” ” ” ” £100 20s. ” £100 ” ” ” ” £125 25s. ” £125 ” ” ” ” £150 30s. ” £150 ” ” ” ” £175 35s. ” £175 ” ” ” ” £200 40s. ” £200 ” ” ” ” £225 45s. ” £225 ” ” ” ” £250 50s. ” £250 ” ” ” ” £275 55s. ” £275 ” ” ” ” £300 60s. ” £300 For every £50, and also for any fractional part of £50, of such amount or value 10s.

Agreement as to stamp duty on certain instruments.

45.—(1) The Revenue Commissioners may, if they in their discretion so think proper, enter into an agreement with any local authority to which this section applies for the composition, in accordance with the following provisions of this section, of the stamp duty chargeable under the heading “Bill of Exchange or Promissory Note” in the First Schedule to the Stamp Act, 1891, on instruments drawn by the local authority on their banker on forms provided by themselves.

PART VI.

Turnover Tax.

Interpretation (Part VI).

46.—In this Part of and the First Schedule to this Act, save where the context otherwise requires— “body of persons” has the same meaning as is given to that expression in section 237 of the Income Tax Act, 1918; “goods” has the same meaning as in the Sale of Goods Act, 1893 ; “hotel” includes any guest house, holiday hostel, holiday camp, motor hotel, motel, coach hotel, motor inn, motor court or tourist court; “month” means any of the months January to December; “secretary” includes such persons as are mentioned in subsection (1) of section 106 of the Income Tax Act, 1918, and subsection (1) of section 55 of the Finance Act, 1920 ; “tax” means tax chargeable by virtue of this Part of this Act.

Charge of turnover tax.

47.—(1) With effect on and from the 1st day of November, 1963, a tax, to be called turnover tax, shall, subject to this Part of this Act and the regulations thereunder, be charged, levied and paid— (a) on moneys received in respect of all or any of the following activities: (i) sale of goods sold in the course of business (including goods sold before the 1st day of November, 1963), (ii) hire of goods hired in the course of business (including goods hired before the 1st day of November, 1963), (iii) provision of services provided in the course of business (including services provided before the 1st day of November, 1963), (iv) acceptance of bets made or entered into with the holder of a bookmaker's licence under the Betting Act, 1931 , (v) acceptance of stakes staked by means of a totalisator to which a licence under the Totalisator Act, 1929 , relates, (vi) acceptance of stakes staked at gaming to which a licence under

Part III

of the Gaming and Lotteries Act, 1956 , relates, (vii) issue of tickets or coupons issued for the purpose of a lottery to which a licence under

Part IV

of the Gaming and Lotteries Act, 1956 , relates, (viii) acceptance of entry fees in respect of crossword puzzles, competitions and contests promoted through the medium of newspapers and other publications, (ix) entertainments as defined in

Section 1

of the Finance (New Duties) Act, 1916 (including any ball or dance); (b) on goods imported into the State.

Persons accountable.

48.—(1) Save as otherwise provided by this Part of this Act, the person accountable for and liable to pay tax shall be— (a) in the case of goods sold—the seller, (b) in the case of goods hired—the person from whom the hirer hired the goods, (c) in the case of the provision of services—the provider, (d) in the case of the acceptance of bets made or entered into with the holder of a bookmaker's licence under the Betting Act, 1931 —such holder, (e) in the case of the acceptance of stakes staked by means of a totalisator to which a licence under the Totalisator Act, 1929 , relates—the holder of the licence, (f) in the case of the acceptance of stakes staked at gaming to which a licence under

Part III

of the Gaming and Lotteries Act, 1956 , relates—the holder of the licence, (g) in relation to the issue of tickets or coupons issued for the purposes of a lottery to which a licence under

Part IV

of the Gaming and Lotteries Act, 1956 , relates—the holder of the licence, (h) in the case of the acceptance of entry fees in respect of crossword puzzles, competitions and contests promoted through the medium of newspapers and other publications—the promoter, (i) in the case of entertainments—in case the person providing the entertainment hired the premises in which the entertainment takes place and subsection (3) of section 47 of this Act does not apply, the person providing the entertainment and, in any other case, the proprietor of the premises.

(f) Where a person has not been accountable for tax by virtue of paragraph (c) of this subsection and the moneys received by him in relation to the activities in which he engages exceed £100 in any month he shall become accountable for tax from the commencement of such month.

Registration.

49.—(1) The Revenue Commissioners shall set up and maintain a register of persons who may become or who are accountable for tax and shall allot a registration number to every person registered and shall cancel such number if the person does not become or ceases to be accountable for tax.

Exception in the case of moneys received from registered persons in certain cases.

50.—(1) (a) Tax shall not be charged on moneys received from a registered person for or in respect of goods sold or hired to him or services provided for him for the purposes of activities with respect to which section 48 of this Act provides for his being the accountable person if (but only if)— (i) he has given to the person from whom the goods were bought or hired or by whom the services were provided a statement in writing quoting his registration number, and (ii) in a case of a sale or hire of goods otherwise than to a dealer therein, the goods do not fall within any of the descriptions set out in the Second Schedule to this Act. (b) For the purposes of the foregoing paragraph registered persons carrying on business as proprietors of hotels and restaurants may be treated as if they were dealers in the goods required for the purposes of their business, but this provision shall not apply in relation to— (i) motor vehicles designed for the conveyance of persons by road, or (ii) hydrocarbon oils for domestic use or for road transport.

Withdrawing goods from stock.

51.—(1) A person withdrawing goods from stock for his own use or for the use of any other person, shall, for the purposes of this Part of this Act, be deemed thereby to have received payment in respect of a sale of the goods at the retail price current at the time of the withdrawal.

Regulations.

52.—(1) The Revenue Commissioners shall make such regulations as seem to them to be necessary for the purpose of giving effect to this Part of this Act and of enabling them to discharge their functions thereunder and, without prejudice to the generality of the foregoing, the regulations may make provision in relation to all or any of the following matters: (a) particulars required for registration and the manner in which registration is to be effected and cancelled, (b) the manner in which and the times at which the tax is to be paid and collected (and it is hereby declared that the procedures for payment and collection may include a procedure for payment and collection by means of stamps affixed to cards), (c) the manner in which tax is to be recovered in cases of default in payment, (d) the keeping by persons accountable for tax of accounts and records, and the preserving of such documents and supporting documents, (e) disclosure to the Revenue Commissioners of such information as they may require for the ascertainment of liability to tax, (f) the production to and inspection and removal by persons authorised by the Revenue Commissioners of invoices, receipts, books, records, accounts and other documents for the purpose of satisfying themselves as to whether tax has been duly paid, (g) the refund of tax paid to the Revenue Commissioners by registered persons in excess of the amount required by law, (h) the remission at the discretion of the Revenue Commissioners of small amounts of tax and interest, (i) the remission or refund of tax payable by bookmakers in respect of void and uncollectable bets and bets laid with other bookmakers, (j) matters consequential on the death of a registered person or his becoming subject to any incapacity, (k) service of notices, (l) the nomination by the Revenue Commissioners of officers to perform any acts and discharge any functions authorised by this Part of this Act to be performed or discharged by the Revenue Commissioners, (m) the acceptance of estimates (whether or not subject to subsequent review) of taxable turnover where particulars of actual moneys received are not readily available, (n) specification of anything referred to, in the First Schedule to this Act, as specified by regulations under this section.

Rate of tax.

53.—(1) Subject to subsection (2) of this section, the tax shall be two and one-half per cent. of the taxable turnover of the accountable person and the amount of tax chargeable during every month shall be paid after the expiration of the month in accordance with the regulations under this Part of this Act.

Estimation of tax due.

54.—(1) If on any occasion an accountable person fails to furnish in accordance with the relevant regulations the particulars necessary for the ascertainment of the amount of tax due by him, then, without prejudice to any other action which may be taken, the Revenue Commissioners may on each such occasion estimate the amount of tax due by him and serve notice on him of the amount estimated.

Interest.

55.—Where any amount of tax is due for payment and is not paid, simple interest on the amount shall be paid by the accountable person, and such interest shall be calculated from the date on which the amount became due for payment and at a rate of one per cent. for each month or part of a month during which the amount remains unpaid.

Recovery of tax.

56.—(1) (a) Without prejudice to any other mode of recovery, the provisions of any enactment relating to the recovery of income tax and the provisions of any rule of court so relating shall apply to the recovery of any tax due in accordance with this Part of this Act and the regulations thereunder as they apply in relation to the recovery of income tax. (b) In particular and without prejudice to the generality of paragraph (a) of this subsection, that paragraph applies the provisions of section 162 of the Income Tax Act, 1918, section 7 of the Finance Act, 1923 , sections 11 and 38 of the Finance Act, 1924 , and section 54 of the Finance Act, 1958 . (c) Provisions as applied by this subsection shall so apply subject to any modifications specified by regulations under section 52 of this Act.

Penalties.

57.—(1) A person who contravenes subsection (2) of section 50 of this Act shall be liable to a penalty of twenty pounds.

Fraudulent return, etc.

58.—(1) Where a person fraudulently or negligently, for the purposes of this Part of this Act or of regulations made thereunder, produces, furnishes, gives, sends or otherwise makes use of, any incorrect return, account, estimate, statement, information, book, document, record or declaration, he shall, subject to subsection (2) of this section, be liable to a penalty of— (a) one hundred pounds, and (b) the amount, or, in the case of fraud, twice the amount, of the difference between the amount of tax paid by such person for the period in question, and the amount of tax properly payable by such person if the said return, account, estimate, statement, information, book, document, record or declaration had been correct.

Time limits.

59.—(1) Subject to subsection (3) of this section and subsection (5) of section 58 of this Act, proceedings for recovery of any penalty under this Part of this Act may be commenced at any time within six years next after the date on which it was incurred.

Penalty for assisting in making incorrect returns, etc.

60.—Any person who assists in or induces the making or delivery, for any purposes of tax, of any return, or account, statement or declaration which he knows to be incorrect shall be liable to a penalty of £500.

Proceedings in the High Court in respect of penalties.

61.—(1) Without prejudice to any other mode of recovery of a penalty under this Part of this Act, an officer of the Revenue Commissioners, authorised by them for the purposes of this subsection, may sue in his own name by civil proceedings for the recovery of the penalty in the High Court as a liquidated sum and the provisions of section 94 of the Courts of Justice Act, 1924 , shall apply accordingly.

Application of section 222 of Income Tax Act, 1918.

62.—The provisions of section 222 of the Income Tax Act, 1918, shall apply to any penalty incurred under this Part of this Act.

Substitution of agent, etc., for person not resident in State.

63.—Where a person who is accountable for any tax, or on whom any duties are imposed by this Part of this Act or regulations made thereunder, is not resident in the State, the Revenue Commissioners may, by notice in writing served on any agent, manager or factor, who is resident in the State and has acted on behalf of that person in the matters by reference to which that person is accountable or those duties are imposed, direct that he shall be substituted for that person as the person accountable for the tax or that he shall be under an obligation to discharge those duties or any of them and, upon such direction having been served, he shall stand substituted accordingly and shall be subject to the same penalties as if he were the person who is accountable for the tax or on whom those duties are imposed.

Charge of tax on imported goods.

64.—(1) Sections 48 to 63 of this Act shall not apply to tax provided for by paragraph (b) of subsection (1) of section 47 of this Act and that tax shall, subject to subsection (2) of this section, be charged on every article imported on or after the 1st day of November, 1963, at the rate of two and one-half per cent. of the value of the article.

Extension of certain Acts.

65.—(1)

Section 1

of the Provisional Collection of Taxes Act, 1927 , is hereby amended by the insertion of “, and also turnover tax,” before “but no other tax or duty”.

(2)

Section 1

of the Imposition of Duties Act, 1957 , is hereby amended by the insertion after paragraph (g) of the following paragraph: “(gg) terminate or vary in any manner or respect whatsoever and as from a specified day turnover tax;” but no order shall be made under that Act for the purpose of increasing the rate of the tax or extending the classes of activities or goods in respect of which tax is for the time being chargeable.

(3)

Section 39

of the Inland Revenue Regulation Act, 1890 , is hereby amended by the insertion of “turnover tax,” before “stamp duties”.

Collection of tax.

66.—Turnover tax shall be paid to and collected and levied by the Collector-General.

PART VII.

Industrial and Provident Societies: Income Tax and Corporation Profits Tax.

Interpretation (Part VII).

67.—In this Part of this Act, save where the context otherwise requires— “capital allowance” means any allowance, other than an allowance falling to be made in computing profits or gains, under Rule 6 of the Rules applicable to Cases I and II of Schedule D, section 5 or section 6 of the Finance Act, 1946 ,

Part V

of the Finance Act, 1956 ,

Part IV

of the Finance (Miscellaneous Provisions) Act, 1956 ,

Part V

of the Finance Act, 1957 , or

Part V

or section 74 of the Finance Act, 1959 ; “loan interest”, in relation to a society, means any interest payable by the society in respect of any mortgage, loan, loan stock, or deposit; “share interest”, in relation to a society, means any interest, dividend, bonus, or other sum payable to a shareholder of the society by reference to the amount of his holding in the share capital of the society; “society” means a society registered under the Industrial and Provident Societies Acts, 1893 to 1936; and references to the payment of share interest or loan interest include references to the crediting of such interest.

Deduction as expenses of certain sums, etc.

68.—(1) It is hereby declared that in computing, for the purposes of Case I of Schedule D or of Rule 4 of the Rules applicable to Case III of that Schedule, the profits or gains of a society there are to be deducted as expenses any sums which— (a) represent a discount, rebate, dividend, or bonus granted by the society to members thereof or other persons in respect of amounts paid or payable by or to them on account of their transactions with the society being transactions which are taken into account in the said computation, and (b) are calculated by reference to the said amounts or to the magnitude of the said transactions and not by reference to the amount of any share or interest in the capital of the society.